Imports and Exports

The Bright Future of the U.S. Dairy Industry: Innovations and Opportunities

Tue, 01 Apr 2025 22:44:19 GMT

The U.S. dairy industry is witnessing a significant upswing, showcasing its potential for growth and innovation. Gregg Doud, president and CEO of the National Milk Producers Federation (NMPF), shared insights at the 2025 California Dairy Sustainability Conference held in Visalia, Calif. His address highlighted the resurgence of animal fats in the diet and the promising future of dairy products, including fluid milk.

Dairy’s Time to Shine
Doud emphasized the renewed interest in animal fats and noted that it’s now dairy’s moment to take the spotlight. With $8.5 billion invested in processing pipelines and new investments, such as Chobani’s recent $500 million expansion in its Twin Falls yogurt facility, the dairy industry is capturing attention. Doud challenged the audience by asking, “Where else in agriculture in the world, name another commodity in another country that has this kind of investment that’s going on in the dairy industry in the United States today?” Answering his question, he confidently stated, “The answer is nowhere.”

Emerging Opportunities and Investments
The massive $8.5 billion is spread across 17 facilities throughout the U.S., fueling the industry’s expansion. Doud pointed out the potential for growth in protein demand not just domestically but also globally. The Midwest stands as a primary area for expanding animal protein crush. Highlighting milestones, he mentioned Hilmar’s new cheese-producing facility in Dodge City, Kan.

“The Midwest, these are the only places on Earth that we can expand in terms of animal protein crush today,” Doud says. “Draw a circle with a 300-mile radius around Amarillo, Texas. Dodge City, Kan., last week, we just had the ribbon cutting — an enormous cheese producing facility.”

U.S. Dairy Exports on the Rise
The export value of U.S. dairy products has seen substantial growth year over year (YOY), rising 20% to an impressive $714 million — a January record. The relationship with Mexico as the top U.S. cheese customer continues to strengthen, although January exports recorded a modest 1% increase.

“The cheese exports to Mexico,” Doud enthusiastically remarked. “This is where it’s at, folks. This is why I’m so excited about this industry.”

China’s post-COVID-19 recovery shows a slower tempo, with Doud pointing out that just 300 million of China’s 1.4 billion people are driving dairy demand. He noted some challenges, such as China’s low semen import rates and the impact of high U.S. interest rates on global competition, but remained hopeful that changes in these areas could present future opportunities.

“That’s a leading indicator to say things are not going to go as well in China, no production going forward, maybe there is going to be some opportunity thereafter,” he says, noting that when you have high interest rates in the U.S. that makes the dollar strong, it makes it difficult to compete globally. “Our exports have been a little softer, but we’re still exporting about 16% of our production.”

Trade Imbalances and a Shift in Production
Another critical point Doud highlighted was the trade imbalance between the U.S. and the European Union (EU). Currently, the U.S. imports $3 billion in dairy products from the EU while exporting just $167 million. This imbalance underlines a broader narrative that sees U.S. dairy exports to non-traditional markets, like Guatemala, outpacing exports to the EU.

“It is an outrageous imbalance and trade,” he says. “You realize that we actually export 15 times more cheese to Guatemala than we do the European Union.”

Interestingly, while milk production appears stagnant, the shift in focus to producing more solids is changing the landscape of the industry.

“We have changed this industry,” Doud stated. “This is why we make more cheese because we’ve got more solids.”

The U.S. dairy industry, driven by substantial investments and shifting consumer preferences, is poised for significant growth in the coming years. As the dairy industry adapts to new challenges and opportunities, stakeholders and consumers alike can look forward to an era where dairy continues to thrive and innovate on a global scale.

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USDA Maintains Cattle Imports Amid Second New World Screwworm Case in Mexico

Thu, 20 Feb 2025 14:35:44 GMT

USDA announced it will not impose new restrictions on cattle imports from Mexico despite the latest detection of New World screwworm in a cow from Tabasco state. The decision follows the agency’s implementation of a pre-clearance inspection and treatment protocol, which aims to ensure safe livestock movement and mitigate screwworm risks. This comes after a previous screwworm case prompted Washington to halt Mexican cattle shipments in November, exacerbating already tight U.S. cattle supplies.

On Feb. 1, USDA’s APHIS announced the resumption of cattle and bison imports from Mexico under a new comprehensive protocol. With herd levels at a 74-year low and high beef prices, traders had speculated during Tuesday trading that another import ban might follow, briefly driving up feeder cattle futures.

The new comprehensive protocol includes:

Pre-export inspection pens in San Jeronimo, Chihuahua, and Agua Prieta, Sonora
Multiple veterinary inspections and treatments
Insecticide dipping of approved animals
Final APHIS inspection before crossing at designated ports of entry
The United States and Mexico have been working to approve additional pre-export inspection pens and reopen trade through other ports of entry.

APHIS has allocated $165 million in emergency funding to protect U.S. livestock, pets, and wildlife from the NWS threat. The agency is also collaborating with partners in Mexico and Central America to eradicate the parasite and restore the biological barrier in Panama, including the deployment of sterile flies to control the screwworm population.

Texas Tech Veterinarian Weighs In On New World Screwworm

Thu, 05 Dec 2024 17:47:02 GMT

USDA’s Animal and Plant Health Inspection Service (APHIS) has heightened import restrictions on animal products from Mexico since detection of New World Screwworm in a Mexican cow on Nov. 22. It has also intensified efforts in Central America to contain the spread of New World screwworm. Animal health experts say it’s warranted as it’s a significant threat to U.S. animal health.

“It can have a huge impact, certainly an economic impact, because it decreases the health and wellness of our livestock,” says Jennifer Koziol, associate professor of food animal medicine and surgery, Texas Tech School of Veterinary Medicine. “We’re thinking about loss of animal use, and certainly thinking about our wildlife populations that could be decimated by this disease.”

The pest can infest any warm-blooded animal, including humans.

“The screwworm fly lies its eggs in an open wound on the animal,” Koziol says. “These larvae or worms just eat the flesh of that animal. It can be devastating to any animal that becomes infected with screwworm.”

Koziol advises producers to monitor herds, especially in the southern U.S., and use preventative measures, including sterile fly introduction or animal health products.

“It looks like Doramectin has about a 28-day efficacy period against this,” she adds. “Ivermectin is similar. We’re looking at those products and how we can use them as an aid in preventing disease.”

According to APHIS, it appears this case is isolated, which leaves the cattle industry asking when will the border restrictions ease for Mexican cattle and product imports.

Koziol says the border could likely open after Christmas or around the first of January.

“We’re working really hard to set up some pre-export pens that APHIS will go in and OK and feeling very good about the protocols set in place,” she adds.

Impact on Cattle Prices
Market analysts say when the border reopens it might hurt cattle prices in the South more than the North.

“They could break a little bit, but I think the reality of the deal is it looks like there’s enough people out there who believe that ownership is the key when it comes to having some cattle around them as tight supplies are very, very tight of yearling-type steers,” says Brad Kooima, Kooima Kooima Varilek. “That’s going to still put a prop underneath the thing because the cash index is so strong.”

The price impact will likely be short lived.

Read more: New World Screwworm: Latest Update from USDA-APHIS

APHIS Increases Import Restrictions on Animal Products from Mexico on Confirmed Case of New World Screwworm

U.S. Imports of Mexican Cattle Disrupted

Mon, 02 Dec 2024 19:28:20 GMT

The Nov. 22, 2024, announcement that New World screwworm was detected in southern Mexico resulted in the temporary suspension of live cattle imports from Mexico. This raises many questions about the implications this might have on U.S. cattle markets. Some history and context are helpful to understand the potential impacts.

An average of 1.17 million head of Mexican cattle were imported into the U.S. in the 20 years from 2004-2023, ranging from a minimum of about 703,000 head in 2008 to a maximum of 1.47 million head in 2012 (Figure 1). Mexican cattle imports represent 3.3% of the total U.S. calf crop on average. Figure 1 also includes 2024 preliminary weekly imports through the first 47 weeks of the year. Imports of Mexican cattle have averaged 84.5% steers and 15.5 percent spayed heifers over the past 20 years (Figure 1). However, in the five years from 2019-2023, the percentage of heifers increased to an average of 21.3%.

Figure 1. Cattle imports from Mexico

(Peel/USDA)

Figure 2 shows the average seasonal pattern of Mexican cattle imports for the last five years. Mexican cattle imports have maintained a relatively stable seasonal pattern for many years with peak months in the spring and in November/December with lows in summer. In recent years the seasonal pattern has equalized slightly with fractionally lower peak months and higher summer lows. However, the pattern remains as seen in Figure 2.

Figure 2. Seasonality of Mexican Cattle Imports

(Peel/USDA)

USDA has indicated that the border is expected to be closed at least three weeks from the late November announcement. Protocols are being developed for a partial opening of the border (New Mexico and Arizona ports) which will include a pre-export inspection of all cattle; treatment for insects; and a seven-day quarantine, followed by the usual border inspection and crossing process. It seems likely that few, if any, additional Mexican cattle will be imported in 2024. The 2024 import value in Figure 1 is based on the preliminary weekly data through Nov. 23 with a total of 1.24 million head. This may well be very close to the import total for the year.

Figure 3. U.S. Imports of Mexican Cattle

(Peel/USDA)

Figure 3 shows the year-to-date monthly official import totals through September. Imports of Mexican cattle were up 21.3% year over year for the first nine months of the year. The pace suggested that total annual imports could be about 1.5 million head. Most of the increase was due to additional spayed heifer imports, up 87.2% year over year and accounting for 35% of total cattle imports.

Figure 2 shows that November and December typically account for roughly 22% of annual imports. Assuming no imports for the last week of November and all of December and given the pace of imports thus far in the year, it is likely that annual imports will be reduced by 200,000 - 250,000 head from the probable total before the screwworm announcement.

The lack of Mexican cattle imports for the remainder of the year will have some immediate impact reducing an already tight feeder supply. However, some of the feedlot impact is not immediate because a portion of the imported Mexican cattle are lightweight and typically go through stocker/backgrounding programs before feedlot placement. In the January–September period this year about 24% of the imported cattle were less than 200 kilograms (441 pounds). It’s important to remember that most of the cattle not imported for the remainder of the year will enter the U.S. eventually…just with a delay. As long as the current situation does not drag out excessively or result in some permanent changes in import regulations, the primary feeder cattle market impact will be a change in timing with a short-term tightening of supply and the delayed cattle arriving in the coming weeks/months.

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New World Screwworm: Latest Update from USDA-APHIS

Tue, 26 Nov 2024 14:59:49 GMT

On Nov. 25, USDA’s Animal and Plant Health Inspection Service (APHIS) held a meeting to discuss the U.S. response to the news of a single case of New World Screwworm (NWS) found in a cow in Chiapas, Mexico. U.S. and Mexican officials are working closely together, but the border has been temporarily closed to live cattle imports.

“Our priority is to ensure there is no risk to our domestic industry, followed by the goal of reopening the border as soon as possible,” says Dr. Michael Watson, administrator of USDA’s APHIS.

In September, work had already begun on protocols in the event NWS was found in Mexico. Those protocols have been reviewed with Mexico for their understanding and will be made public once finalized.

Points of Protocol
Dr. Burke Healey, senior leader for policy and operations for APHIS, shared protocol will likely include pre-export inspections by Mexican veterinarians overseen by SENASICA, the equivalent to APHIS, before allowing cattle imports to resume. The inspections will make sure:

appropriate logs accompany animals coming into and leaving the facility
cattle are treated with ivermectin
there’s a seven-day quarantine period

Upon passing inspection, cattle will again be inspected by U.S. officials, along with additional inspections for tuberculosis and ticks. The cattle will be dipped, and then presented to cross the border. Healey says federal inspection sites will focus on ports in Chihuahua and Sonora.

“Those five ports are on the Mexican side, so those inspections and all of that protocol are taking place in Mexico and not on U.S. soil,” he explains.

The ports in Texas will be considered for reopening once the protocol details have been finalized and are working as expected, he adds.

Cristobal Zepeda, regional manager for North America for APHIS, says U.S. and Mexican officials maintain a close working relationship and that communication is key in this situation. Mexico had previously instituted three federal inspection points at strategic locations where cattle come into the country near the border with Guatemala and other areas.

“All animals are downloaded and inspected for wounds visually and through detector dogs,” Zepeda says. “They’re sprayed with an insecticide and receive ivermectin. The system works. That’s how it was picked up.”

Mexico has not completed its investigation but acknowledges the infested cow might have been imported from Guatemala.

While the timeline for reopening trade is tentatively estimated to be at least three weeks, it quite possibly could extend into January as Mexico typically closes ports for two weeks during Christmas and New Year’s, Healey says.

Control the Spread
The discussion also covered the potential impact on the livestock industry, which could be in the billions if NWS reaches the U.S., and the importance of sterile fly production.

The U.S. imports 1 million to 1.1 million cattle from Mexico annually. All Mexican cattle are required to have a Mexican origin ear tag and documentation of the herd of origin, TB test of that herd of origin and a TB test of the specific animals being presented for export. These requirements will remain in place.

Sterile flies from a Panama facility will be sent to Mexico to help control the spread of NWS further south and into Central America. Capacity from that facility is around 95 million per week. Mexico is also looking at retrofitting fruit fly plants to produce about 60 million sterile files a week.

The APHIS website will provide NWS updates .

Be On the Lookout
Adult screwworm flies are about the size of a common housefly (or slightly larger). They have orange eyes, a metallic blue or green body, and three dark stripes along their backs.

If you see mammals and birds with the following signs, report them to your state veterinarian:

Irritated behavior
Head shaking
Smell of decay
Evidence of fly strike
Presence of fly larvae (maggots) in wounds

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When Disaster Strikes: Highly Pathogenic Avian Influenza Provides New Insight

Wed, 07 Sep 2022 19:04:42 GMT

Though the pork and beef industries are not likely concerned about poultry, there is value in watching trends and understanding the impacts a disaster—like African swine fever or foot and mouth disease outbreak could have on the other meat sectors.

As the Highly Pathogenic Avian Influenza (HPAI) wreaked havoc the U.S. poultry industry earlier this year , prices for eggs and turkey skyrocketed. Table egg prices tripled, and turkey breast meat rose to historic levels, CoBank reports. Tight supplies and strong consumer demand for animal protein prior to the HPAI outbreak also added fuel to the flame.

U.S. poultry exports through June were up 19% year-over-year, CoBank says. With the poultry industry’s increased dependence on export markets, the HPAI threat brings new vulnerability for exporters subject to potential trade restrictions.

“Fortunately for U.S. poultry exporters, the current world views on HPAI trade restrictions have relaxed since the last major outbreak in 2014 and 2015,” says Brian Earnest, lead animal protein economist with CoBank. “Rather than a blanket ban, trade partners set new restrictions at county, state or regional levels because outbreaks had become commonplace globally. Not coincidentally as politicians across the globe were concerned about rapidly escalating food prices after Russia’s invasion of Ukraine.”

Looking back to 2014, China immediately closed its borders to U.S. poultry after the HPAI outbreak. It wasn’t until 2019 that China markets reopened as part of the U.S.-China Phase One trade deal. During this time of closure, leg quarter and chicken claw prices fell by 50% or more.

“The 2014-15 HPAI outbreak devastated U.S. producers, with direct costs associated with euthanizing and depopulating 43.2 million laying hens and 7.3 million turkeys estimated at $1.6 billion. Including the associated recovery costs, the total jumped to more than $3.3 billion,” CoBank reports.

What’s next for the poultry industry?

In 2015, the U.S. egg industry saw an immediate rise in productivity rates after the mass depopulation, followed by flattening for several years. With feed, labor and other production costs much higher today, Earnest expects producers will be slower to rebuild their flocks this time.

“A smaller national layer flock means a smaller egg supply in coming months, higher egg prices and fewer eggs consumed,” Earnest explains.

Why should other meat producers should take note?

This can be directly translated to other meat sectors, as inputs costs have risen across the board. In the case of any disease outbreak where depopulation occurs , producers may not be chomping at the bit to rebuild.

For the cattle industry, cow liquidation leads to its own form of “depopulation” due to a lack of feed resources.

Additionally, coinciding with HPAI outbreaks in U.S. turkey flocks this year, wholesale spot market values for fresh tom breast meat has eclipsed $6.50 per pound in recent weeks, a level previously deemed unattainable, CoBank notes.

It’s hard to know exactly how a disease outbreak would affect the pork and beef industries in the U.S. but taking a look at HPAI and the poultry industry might be a good start.

Farmer Support For Trump Holds Strong And Steady

Tue, 17 Nov 2020 05:16:07 GMT

President Donald Trump remains in U.S. farmers’ good graces, according to the latest Farm Journal Pulse survey, despite an ongoing trade war with China and a 2019 average net-farm income that is projected to be less than half of what it was in 2013.

The Pulse survey sent via text to approximately 5,000 farmers on Monday asks, “Do you approve or disapprove of the way Donald Trump is handling his job as president?”

Of the 1,129 farmers who responded to the survey, 50% say they strongly approve while another 24% say they somewhat approve.

(Farm Journal)

Farmer approval ratings for Mr. Trump are statistically the same as they were in December 2018, when the Pulse survey regarding his job performance was first conducted. The survey has been conducted five times in the past year-and-a-half, the most recent in late April.

Randy Russell, The Russell Group, attributes the high marks for Mr. Trump to a couple of reasons, including his efforts to rein-in China’s theft of U.S. intellectual property.

“The Chinese have been stealing our intellectual property and forcing companies to transfer technology to them. We’re at a pivotal point, and for the first time we’ve got a president who’s trying to do something about it. Farmers may not agree with every tactic he uses or everything he says, but they support what he’s trying to accomplish,” Russell said earlier this year.

In May, Mr. Trump announced tariffs on $200 billion worth of Chinese imports. Beijing responded by imposing duties on $60 billion worth of U.S. goods. President Trump has said he is prepared to apply additional tariffs on $300 billion of Chinese goods, if a trade resolution with the country is not forthcoming. He is supposed to meet with China president Xi Jinping at the G-20 summit, which is scheduled for June 28-29 in Osaka, Japan.

To review interactive maps from previous Pulse surveys, go to Agweb.com and click on the link, Farm Journal Pulse. Text the word PULSE to 31313* to participate in future surveys.

To weigh-in on the Pulse survey results, you can reach Farm Journal Editor, Rhonda Brooks, at rbrooks@farmjournal.com.

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Nebraska Rancher Steve Hanson Elected Chair of USMEF

Steve Hanson, a rancher from Elsie, Neb., was elected chair of the U.S. Meat Export Federation at the organization’s Strategic Planning Conference in Tucson, Ariz., on Nov. 8. Hanson says a priority for him will be the partnerships with the various checkoffs that support the work of USMEF around the globe.

“The checkoffs are one of the ways we invest in ourselves, because if we don’t tell our story, somebody else will, and it probably won’t be in the way we want them to,” Hanson says. “The checkoffs have done great things on research for nutrition. We have become great environmentalists because of it. Our stewardship of our cattle - we learned how to handle our cattle better, and this is because the checkoff dollar invests its money back into the farming community and the ranching community so that we can do a better job.”

Hanson says the strength of USMEF comes from the involvement of all of the diverse sectors of the red meat industry, including livestock producers, grain producers, exporters, packers.

“Everybody performs a part in this and it takes all of us, and we all have to be healthy to have a good economy in the meat business,” he adds. “One thing I like to say is, I’ve never gotten a bad check from a packer. They take a lot of bad raps, but I guarantee you, their money is always good, and they take really good care of our cattle once they get them there. For us to get them there in the right kind of shape and do it with the right genetics, it’s been a learning process, but it’s something we all do, and it takes all sectors.”

He added that it takes all segments producing quality food from the grain the livestock eat, to the livestock themselves, then the processing of those animals and finally to the exporters.

“They play a crucial role in getting our product overseas and in a good shape,” Hanson says.

Hanson succeeds Randy Spronk, a hog producer and grain farmer from Minnesota.

Other officers elected to leadership roles at USMEF include:

Jay Theiler, USMEF chair-elect, is executive vice president of corporate affairs for Agri Beef Co., a diversified business with operations in every step of the beef supply chain including ranching, cattle feeding, cattle nutrition and beef processing. He is a past director of the Idaho Beef Council and has served on the Beef Industry Long Range Plan Task Force.

Dave Bruntz, USMEF’s secretary-treasurer is president of Bruntz Farming & Feeding in southeastern Nebraska, where he raises irrigated corn and soybeans and feeds cattle. Dave served on Nebraska Corn Board for nine years, with three of those years as chairman. He is also a past president of Nebraska Cattlemen and served as the regional vice president of NCBA.

The newest USMEF officer is Secretary-Treasurer Darin Parker, director of Salt Lake City-based exporter/distributor PMI Foods.