Source: AgriLife Today
The U.S. dairy industry would suffer a significant blow on a number of products resulting from a proposed 25 percent tariff imposed on dairy products by China, according to a study.
Dr. Luis Ribera, director of the Center for North American Studies at Texas A&M University and Texas A&M AgriLife Extension Service economist, found a number of issues that could hamper U.S. dairy producers.
The study initially examined the impacts on potential retaliatory tariffs on both China and Mexico export dairy markets.
Regarding China, the study examined three potential scenarios: using elasticities to measure the potential losses of the China dairy export market; a 42 percent loss of the China dairy export market as seen in exports data for July and August; or total elimination of the China export market.
He said the bottom line is producers will take a hit regardless of economics or politics. “We won’t be sending as much product overseas, not selling as much, (and) still losing that important market.”
Full study of potential loss of U.S dairy export market to China
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