U.S. Dairy Exports Experience Setback from Record Highs in 2023, IDFA Reports
Source: The DairyNews
Michael Dykes, D.V.M., President and CEO of the International Dairy Foods Association (IDFA), commented on the recently released U.S. agricultural export data for the calendar year 2023 by the U.S. Department of Agriculture, stating that it presents a mixed scenario for U.S. dairy.
While the overall U.S. agricultural sector is grappling with a trade imbalance, the dairy industry stands out as an outlier with a substantial trade surplus. However, Dykes highlighted that the total value of U.S. dairy exports saw a $1.5 billion decline, coupled with a 7% volume decrease in 2023. This underscores the need for U.S. trade officials to prioritize creating new, favorable market opportunities for American producers and food exporters.
Dykes emphasized challenges in meeting export projections, particularly in Canada, due to persistent barriers erected by the Canadian government hindering American exporters from fulfilling their tariff quotas as promised in the U.S.-Mexico-Canada Agreement.
Soft demand in key markets such as China and Southeast Asia, including the Philippines, Vietnam, and Malaysia, further underscores the necessity for a strategic trade approach in the Asia Pacific region. Although U.S. dairy exports outperformed many other commodities, Dykes stressed that the industry is not fully realizing its potential.
Despite being globally recognized for having the lowest carbon intensity footprint and competitive pricing, U.S. dairy faces limitations in leveraging these strengths due to insufficient export opportunities. Dykes highlighted the crucial role of export growth in sustaining the productivity of U.S. dairy farmers and called on Congress and the Administration to collaborate on a realistic trade agenda prioritizing preferential access for U.S. dairy exports.
The IDFA represents the nation's dairy manufacturing and marketing industry, supporting over 3.2 million jobs with a significant economic impact. Its diverse membership spans multinational organizations, cooperatives, retailers, and suppliers, collectively shaping the landscape of dairy production and consumption in the United States and globally.
Dykes emphasized challenges in meeting export projections, particularly in Canada, due to persistent barriers erected by the Canadian government hindering American exporters from fulfilling their tariff quotas as promised in the U.S.-Mexico-Canada Agreement.
Soft demand in key markets such as China and Southeast Asia, including the Philippines, Vietnam, and Malaysia, further underscores the necessity for a strategic trade approach in the Asia Pacific region. Although U.S. dairy exports outperformed many other commodities, Dykes stressed that the industry is not fully realizing its potential.
Despite being globally recognized for having the lowest carbon intensity footprint and competitive pricing, U.S. dairy faces limitations in leveraging these strengths due to insufficient export opportunities. Dykes highlighted the crucial role of export growth in sustaining the productivity of U.S. dairy farmers and called on Congress and the Administration to collaborate on a realistic trade agenda prioritizing preferential access for U.S. dairy exports.
The IDFA represents the nation's dairy manufacturing and marketing industry, supporting over 3.2 million jobs with a significant economic impact. Its diverse membership spans multinational organizations, cooperatives, retailers, and suppliers, collectively shaping the landscape of dairy production and consumption in the United States and globally.
