Impact of tariffs on global dairy trade ‘currently unclear’ – Ornua
Source: dairynews.today
The impact of tariffs on the global dairy trade remains uncertain, according to Ornua’s latest Global Dairy Market Report, published this week. The March report noted that while historical trends suggest tariffs typically have a negative effect, the extent of the impact varies across dairy commodities.
Dairy demand usually strengthens in the second quarter, but weaker Chinese purchasing activity and ongoing trade tensions could weigh on sentiment and consumption, the report warned.
Last year, Ornua accelerated shipments of dairy products into the U.S. in anticipation of potential tariff hikes under then-President Donald Trump. Kerrygold, its flagship butter brand, is the second-largest in the U.S. market.
Escalating Trade Tensions
Irish Agriculture Minister Martin Heydon is set to lead a trade mission to the U.S. in the coming weeks as trade tensions between the European Union and the United States escalate.
This week, former U.S. President Trump announced plans to impose a 200% tariff on European wines, champagnes, and alcoholic beverages. The move follows the EU’s decision to introduce counter-tariffs on €26 billion ($28 billion) worth of U.S. goods starting next month.
Heydon’s visit will focus on reinforcing Irish food companies' investments in the U.S. and highlighting their economic contribution. Approximately 770 Irish firms operate in the U.S., employing around 200,000 people. Ornua alone has a workforce of 800 in the country.
The Ornua report also flagged weaker-than-expected European milk supply, with limited room for volume growth. Milk collections across the EU-27 remained flat in December and declined 1.2% in January.
Irish milk production rose 9.4% in January, though the increase came from a weak prior-year base and fell short of expectations.
“Global annual growth is unlikely to exceed 0.5%, though milk solids may show stronger performance,” the report stated.
European dairy commodity markets softened in February, weighed down by high pricing and lower seasonal demand. While cheese and powder markets have yet to gain momentum, signs of stability are emerging. Butter and cream prices, meanwhile, firmed.
Recent Global Dairy Trade (GDT) auction results were weaker but outperformed expectations, with some buyers seeking to reduce exposure to U.S. trade risks, the report added.
Last year, Ornua accelerated shipments of dairy products into the U.S. in anticipation of potential tariff hikes under then-President Donald Trump. Kerrygold, its flagship butter brand, is the second-largest in the U.S. market.
Escalating Trade Tensions
Irish Agriculture Minister Martin Heydon is set to lead a trade mission to the U.S. in the coming weeks as trade tensions between the European Union and the United States escalate.
This week, former U.S. President Trump announced plans to impose a 200% tariff on European wines, champagnes, and alcoholic beverages. The move follows the EU’s decision to introduce counter-tariffs on €26 billion ($28 billion) worth of U.S. goods starting next month.
Heydon’s visit will focus on reinforcing Irish food companies' investments in the U.S. and highlighting their economic contribution. Approximately 770 Irish firms operate in the U.S., employing around 200,000 people. Ornua alone has a workforce of 800 in the country.
The Ornua report also flagged weaker-than-expected European milk supply, with limited room for volume growth. Milk collections across the EU-27 remained flat in December and declined 1.2% in January.
Irish milk production rose 9.4% in January, though the increase came from a weak prior-year base and fell short of expectations.
“Global annual growth is unlikely to exceed 0.5%, though milk solids may show stronger performance,” the report stated.
European dairy commodity markets softened in February, weighed down by high pricing and lower seasonal demand. While cheese and powder markets have yet to gain momentum, signs of stability are emerging. Butter and cream prices, meanwhile, firmed.
Recent Global Dairy Trade (GDT) auction results were weaker but outperformed expectations, with some buyers seeking to reduce exposure to U.S. trade risks, the report added.
