U.S. Dairy Industry Positioned to Drive Global Trade Growth
Source: DairyNews.today
U.S. dairy farmers are uniquely positioned to capitalize on global trade opportunities, according to agricultural economist Dan Bosse from Ag Resource. Speaking with Brownfield Ag News, Bosse highlighted the competitive advantages of the U.S. dairy industry in expanding its global footprint compared to other major dairy-producing regions.
“Europe has limited capacity for growth due to environmental regulations, high grain costs, and other regulatory constraints,” Bosse explained. “In Oceania, New Zealand may have some expansion potential, but Australia’s ability to increase production is constrained.”
Bosse stressed that for U.S. dairy to fully leverage these opportunities, supportive trade policies are essential. “The U.S. dairy industry is well-positioned for trade growth. The question is, can we secure the political backing and build the overseas demand needed to support it?” he said, expressing optimism for increased export relationships and the potential for milk futures to approach $30 per hundredweight.
Bosse also noted that Chinese grain buyers are accelerating purchases in anticipation of potential tariffs, especially given the possibility of renewed trade tensions under a new administration.
Bosse stressed that for U.S. dairy to fully leverage these opportunities, supportive trade policies are essential. “The U.S. dairy industry is well-positioned for trade growth. The question is, can we secure the political backing and build the overseas demand needed to support it?” he said, expressing optimism for increased export relationships and the potential for milk futures to approach $30 per hundredweight.
Bosse also noted that Chinese grain buyers are accelerating purchases in anticipation of potential tariffs, especially given the possibility of renewed trade tensions under a new administration.
