As its competitors move to constrain – if not roll back – their own dairy production, United States dairy producers are well-positioned to become the preferred supplier to growing international dairy markets, two top dairy economists said in an NMPF podcast.
New Zealand and the European Union, the main U.S. competitors on global dairy markets, aren’t as focused on sustainably feeding the world as the United States, said William Loux, vice president of global economic affairs for the U.S. Dairy Export Council.
“You see countries like the Netherlands driving programs to reduce dairy cows by 30 percent,” he said. “That's not really necessarily in the spirit of, ‘Hey, there's a globe right now that is demanding dairy products. How do we do that sustainably?’ which I think is the U.S. perspective. So, as we go forward, the US really should be the one to capture this global dairy demand as we increase our exports overall.”
Loux is joined in the podcast by Stephen Cain, director of economic research and analysis at NMPF. Cain detailed current trade challenges U.S. producers face, including continued supply chain difficulties involving China.
“We're still having some issues getting product out of the West Coast of the United States, but a growing issue that's taken place over the last six weeks has really been the buildup and the backlog into Chinese ports, especially outside Shanghai,” Cain said. “COVID-induced lockdowns throughout the region have grown in number and intensity and the amount of people that are being locked down. That's effectively shut down some of these ports.”