U.S. Milk Exports to Mexico at Risk

$1.2 billion of milk exports from the U.S. to Mexico are at risk as Mexico appears to be seeking new trading partners. Mexico is America’s top dairy exporter, and as the Donald Trump administration makes trade relations uneasy with its North American Free Trade Agreement counterparts, Mexico is in talks to import dairy products from New Zealand. In the first two months of 2017, Mexico increased its imports of skim milk powder from the European Union by 122 percent over last year. Mexico has also been exploring talks with dairy powerhouse New Zealand. That country’s trade minister visited Mexico in February to discuss a potential trade deal, according to Bloomberg news. University of Missouri agricultural economist Scott Brown says Mexico is “looking to make sure they have market alternatives because of the rhetoric from the U.S. on renegotiating NAFTA.” But, CoBank economist Ben Laine says “it’s not just the NAFTA talk.” He says demanding that Mexico pay for a border wall and taking a hard line on immigration likely have an impact, as well.

From the National Association of Farm Broadcasting news service.