Tariff strategy impacts trade relationships

Dairy farmers and dairy processors are feeling the impact of the current U.S. tariff strategy. “We understand the need to level this trade playing field and really support that, but there’s a real urgency to defining these relationships,” said Sheryl Meshke, CEO of Associated Milk Producers Incorporated. “We’ve worked since 2020; some have worked decades to build these trade relationships, and we just can’t afford, the dairy farmer can’t afford, for those to be dismantled.” Ninety-five percent of AMPI products are sold to domestic customers, but the co-op made a move to grow the export portion of its business five years ago. “We focused on value-added exports, so not the cheapest, but honing those relationships with countries, in-house distributors and in-market distributors with things like slice-on-slice, shred and that consistent need that they will have for those value-added products,” Meshke said.

Trade deals announced

President Donald Trump and his administration negotiated a handful of trade deals during a whirlwind eight days in Southeast Asia. The trip coincided with the Asia-Pacific Economic Cooperation summit in Malaysia. Reciprocal trade agreements were completed with Malaysia and Cambodia, and framework deals were done with Thailand and Vietnam. With this action, Malaysia will give preferential market access to U.S. ag products, including dairy products. A similar plan is in place with Cambodia; additionally, Cambodia agreed to allow the use of common names for U.S. cheese and meat products. The National Milk Producers Federation and International Dairy Foods Council praised the trade activity: “The agreement with Malaysia will deliver meaningful gains for U.S. dairy exporters, including the elimination of virtually all remaining dairy tariffs, state-of-the-art protections for common cheese names, assurances regarding dairy certification, recognition of the U.S. dairy safety system, streamlining of facility registration requirements and reinforcement of the vital importance of basing regulations on sound science.”

Dairy-RP payments impacted by government shutdown

The government shutdown affected the release of the United States Department of Agriculture Milk Production report. Dairy farmers enrolled in the Dairy Revenue Protection program for the third quarter are also impacted. Dairy-RP indemnity payments are calculated with information from the Milk Production report. As a result, payments are postponed until the report is published or another solution is announced.

Evers wants farm bill wrapped up

Wisconsin Governor Tony Evers has sent a letter to the state’s congressional delegation, seeking support for reauthorization of the farm bill. “Wisconsin’s farmers need our congressional delegation to show up and continue to make progress on this critical piece of legislation,” Evers wrote. “Indeed, it is in large part because of the ongoing federal government shut-down and the impact it is having on our farmers and producers that timely passage of a comprehensive Farm Bill is perhaps more important than ever as President Trump prioritizes foreign nations’ farmers and producers over American farmers, producers and our agricultural industries.”

IDFA highlights trade barriers

The International Dairy Foods Association has submitted formal comments to the U.S. Trade Representative’s Office, highlighting the trade barriers for U.S. dairy exports. Topping the list is Canada’s tariff rate quota and milk pricing policy, Mexico’s proposal to limit U.S. milk powder imports, China’s state-owned enterprises and the EU’s expansion of geographical indications and environmental regulations.

Dietary guidelines delayed

The Trump administration is delaying the release of the new dietary guidelines due to the ongoing government shutdown. The Department of Health and Human Services and USDA were planning to finalize the report by the end of October, but the release is now tentatively scheduled for December. These guidelines are updated every five years. Robert F. Kennedy’s Make America Healthy Again movement is expected to put its stamp on these recommendations.

Hay prices decline slightly

According to the latest Hay Market Demand and Price Report for the Upper Midwest, hay prices declined slightly in October. Prime alfalfa hay averaged $149 per ton for large squares, $282 per ton for small squares and $112 per ton for large rounds. Grade 1 hay was priced at $109 per ton for large squares and $81 per ton for large rounds, and no price was given for small squares. Grade 2 hay averaged $71 per ton for large rounds and $55 per ton for large squares.

Plant-based dairy growth forecast

A new report from MarkNtel Advisors forecasts the global plant-based dairy market could reach $34 billion by 2030. That compares to a current value of $20 billion. The report cites increased availability of plant-based options in mainstream businesses and the increasing popularity of vegan diets.

AMPI to sell New Ulm butter plant

Associated Milk Producers Incorporated is selling its New Ulm, Minnesota butter plant to Grassland Dairy of Greenwood, Wisconsin. The sale is expected to close at the end of the year. An AMPI spokesperson said the move will allow AMPI to focus on its core business, which is cheese. AMPI’s headquarters will remain in New Ulm, as it is the geographic center of the cooperative’s manufacturing footprint and its membership. AMPI will maintain its Dinner Bell Creamery brand and is also planning a production change at its Blair, Wisconsin processing plant. Rather than producing cheddar cheese, this facility will manufacture cottage cheese, which is new to the AMPI portfolio. A medium cheddar cheese produced in the Blair location was named best in its class and second runner-up overall in the 2024 U.S. Championship Cheese Contest.

NCB Co-op 100 Updated

The National Cooperative Bank has released its annual ranking of the top 100 revenue-earning cooperatives. CHS remains at the top of that list with 2024 income of $39 billion. Six of the top ten largest cooperatives are from agriculture, including Dairy Farmers of America, Land O’Lakes, CoBank, GROWMARK and AgriBank.

New alfalfa specialist appointed

Dr. Luana Queiroz is the new University of Wisconsin Extension alfalfa outreach specialist. The Brazilian native earned her master’s degree at the University of Florida with a focus on forage management.

Trivia Challenge

Feta is the Greek, brined, crumbly cheese. That answers our last trivia question. For this week’s trivia, what company has been the biggest manufacturer of mac and cheese since the 1940s? We’ll have the answer in our next edition of the Dairy Star.

Don Wick is owner/broadcaster for the Red River Farm Network of Grand Forks, North Dakota. Wick has been recognized as the National Farm Broadcaster of the Year and served as president of the National Association of Farm Broadcasting. Don and his wife, Kolleen, have two sons, Tony and Sam, and five grandchildren, Aiden, Piper, Adrienne, Aurora and Sterling.