Dairy Industry Making Mooves

The dairy industry is making mooves.

Last week the Fair Milk Pricing for Farmers Act received bipartisan support when Senators Kirsten Gillibrand (D-NY) and Susan Collins (R-ME) introduced the bill. This legislation “would require manufacturers to report dairy processing costs every two years.” For dairy farmers, this means validating that their prices reflect the costs of production. 

Meanwhile, back at the farm House: Representatives Nick Langworthy (R-NY) and Joe Morelle (D-NY) introduced the companion legislation in the House of Representatives.

All in favor? The New York Farm Bureau, National Milk Producers Federation, Northeast Dairy Farmers Cooperatives, and International Dairy Foods Association have all added their stamps of approval.

Soundbite: “Volatility in the dairy market causes uncertainty for farmers and consumers alike, leading to unfair prices for both. It’s critical we take action to ensure everyone receives the fairest price possible, which is exactly what this legislation seeks to do.” – Rep. Joe Morelle (D-NY)

At the international level, the U.S.-Mexico-Canada Agreement (USMCA) is up for its six-year review next year. The review will allow all parties to agree upon adjustments or renew the agreement for another 16 years. Without a renewal, it will expire in 2036. U.S. negotiators are pushing for the dairy best outcomes for the dairy industry.

Fun fact: Canada is the second-largest market for U.S. dairy products. However, they restrict the amount of U.S. imports to protect their industry. 

An udder disappointment: U.S. milk exports for 2024 were nearly 33%of the total volume allowed under the tariff rate quota (TRQ). Yogurt was down to 10%.

Disputes: This isn’t the first time the U.S. has disputed Canada’s dairy dealings. In 2022, the U.S. was rewarded when a panel found that Canada’s setting aside a certain percentage of the quota for processors was in direct violation of USMCA commitments. 

Crying over spilled milk: Australia and New Zealand aren’t happy with Canada after accusing them of dumping dairy protein products below fair market prices into their markets.

Where this goes: “It’s going to be a very bumpy ride over the next three to four years.” – Eric Gottwald, American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)