Dairy Industry Problems
Dairy Industry Problems
Dairy farmers continue to face pressure from a depressed market, and is also caught in the crossfire of President Trump's global trade war.
When the U.S. pulled the trigger on Chinese imports through newly imposed tariffs last May, the U.S. dairy industry took a direct hit from return fire on two fronts.
China slapped 25 percent retaliatory tariffs on all U.S. dairy products. And Mexico imposed a 25 percent tariff on U.S. cheese in response to Trump's tariffs on steel and aluminum.
Industry analyst Bryan Doherty explains, the dairy industry currently has large dairies that have expanded during a high price market early in the decade. With expansion creating ample inventory, Doherty says the market is experiencing a hangover.
Some relief may be coming from the newly renegotiated North American Free Trade Agreement among the U.S., Mexico and Canada.
