Even Just the Threat of Tariffs has Reduced Dairy Markets
- amy55735
- Feb 26
- 1 min read
The U.S. dairy industry is highly dependent on trade, with more than 20% of its total milk supply sold to other countries in the form of milk and dairy products, especially milk powders. Thus, even the threat of a trade war has had a chilling effect on nonfat dry milk (NDM) and skim milk powder (SMP) markets, according to Sarina Sharp, analyst with the Daily Dairy Report.
“While no new tariffs on U.S. dairy exports have been implemented, the risk of a trade war has already taken a toll on the U.S. dairy industry,” Sharp said.
Dairy Market News backed up that assessment when it reported that even the possibility of tariffs has caused domestic NDM buyers to take a step back “to avoid catching the proverbial falling knife.” CME spot NDM prices closed at $1.27/lb. last week, the lowest price in six months, and NDM futures were at their weakest levels since last summer.
By Fran Howard
February 25, 2025
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