By LEE MIELKE Mielke Market Weekly column The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) warned last week in a joint news release that “American dairy products headed to Canada and Mexico could face stiffer tariffs and, ultimately, reach fewer foreign customers unless Congress repeals Country of Origin Labeling (COOL) requirements for meat products that violate international trade rules.” They spell out that “Under the World Trade Organization ruling announced Monday, “Canada and Mexico are entitled to retaliate against U.S. exports, and that could well include higher tariffs on U.S. dairy products,” said Jim Mulhern, NMPF president and CEO. He noted that Canada has already indicated it will target the U.S. dairy industry, while Mexico retaliated against U.S. dairy products in a past NAFTA finding against the United States.” “America’s dairy farmers should not suffer collateral damage as a consequence of our COOL policy. The U.S. government needs to rectify this situation before we lose any export customers,” Mulhern said. “Mexico is our largest export market, and Canada is also a significant destination for U.S. dairy products,” said Tom Suber, president of USDEC. “At a time of softer global dairy demand, we need to be focused on ensuring we keep exports moving and doing all we can to avoid new roadblocks from being put in our exporters’ paths.” The WTO will finalize by the end of the month the recent decision faulting U.S. COOL requirements, after which Canada and Mexico can formally request permission to retaliate against the United States. Production chugs along Improving weather in the spring flush and moderate feed prices are keeping U.S. milk production above year-ago levels. Preliminary data in last week’s April Milk Production Report estimate output in the top 23 producing states at 16.6 billion pounds, up 1.7 percent from April 2014. The 50-state total, at 17.8 billion pounds, was also up 1.7 percent. Revisions added 30 million pounds to the original March 23-state estimate, now reported at 16.9 billion pounds, up 1.3 percent from 2014. April cow numbers in the 23 states, at 8.62 million head, were up 2,000 head from March and 77,000 more than a year ago. The 50-state count, at 9.3 million head, was up 1,000 from March and 65,000 more than a year ago. April output per cow in the 23 states averaged 1,928 pounds, up 16 pounds from April 2014, the highest production per cow for the month of April since the 23-state series began in 2003. California milk production remains below year-ago levels, down 2.1 percent in April from a year ago, thanks to a 40 pound drop per cow and 2,000 fewer cows. Wisconsin poured it on, up 4 percent, on a 60 pound gain per cow and 9,000 more cows. Idaho was up 2.4 percent, on an extra 12,000 cows and a 5 pound gain per cow. New York was up 1.9 percent on a 30 pound per cow gain and 2,000 more cows. Pennsylvania was up 2.8 percent on 1,000 fewer cows but output per cow was up 50 pounds. Minnesota was up 2.7 percent, thanks to a 50 pound gain per cow, though cow numbers were down 1,000 head. South Dakota again had the biggest gain, up 9.8 percent, followed by Kansas, up 6.5 percent. Michigan was up 6.5 percent, thanks to a 25 pound gain per cow and 20,000 more cows than a year ago. Colorado was next, up 6.1 percent. The biggest loss was in California, followed by New Mexico, down 1.4 percent, due to a 30 pound drop per cow. Oregon was the only other state showing a decline, off 0.9 percent, due to a 20 pound loss per cow. Looking at two other states of interest, Texas was up 0.9 percent on a 10 pound drop per cow and 2,000 more cows. Washington State was up 0.5 percent despite a 25 pound drop per cow, but cow numbers were up 5,000 head. --- The views and opinions expressed in this column are those of the author and not necessarily those of Farm World. Readers with questions or comments for Lee Mielke may write to him in care of this publication. |
