US dairy exports plummet before Trump tariff action

This is reported by the USDEC, the American dairy export agency. A total of 164.588 tons were exported in February, compared to 174.175 tons in February 2024.

The main cause of the decline in exports is the sharply reduced export (-26%) of skimmed milk powder (NFDM/SMP). This fell by 16.737 tonnes. Exports to Southeast Asia in particular were hit hard (-53%). The American product was no longer competitive there.

On the other hand, more cheese and especially cream and butter were exported. The export of milk fat increased by 236%, or by more than 6.000 tons. The buyers were mainly Mexico and Canada. Unlike milk powder, American milk fat is very cheap (butter costs $5,07 per kilo, which is more than $3 less than the EU price). This is because the US is struggling with a large surplus. People talk about a 'cream lake'. 
Export figures for March are not yet available.

EU does not retaliate with high import duties on US dairy 
Since the tariff war initiated by President Trump, the picture has changed further, as many countries are also erecting barriers for American products. However, the EU will not retaliate with higher import tariffs on American dairy products for the time being. This is mainly to spare Ireland, according to Irish spokesmen. That country exports more than €500 million worth of butter to the US every year. This mainly concerns Kerrygold butter. This flow accounts for 7,5% of total Irish dairy exports. This represents a value of 3 cents per litre of milk money in Ireland, according to export agency Ornua. 

The American dairy industry is not only suffering from the counter-tariffs that many other countries have imposed in response to the American tariffs. Measures such as extra high port fees for Chinese-built ships that call at the US are also harming exports. The dairy industry in the US calculated well before April that this measure alone costs the US 8% of dairy exports.