California Ag Network

Tag: US Dairy Industry

  • U.S. Dairy Industry’s Economic Impact Totals $753 Billion

    The U.S. dairy industry continues to play a strong role in the U.S., supporting 3.3 million total jobs and $41.6 billion in direct wages, according to the latest economic impact report from the International Dairy Foods Association (IDFA).

    IDFA’s 2021 Economic Impact Study, which measures the combined impact of the dairy products industry, showed the U.S. dairy industry’s economic impact totaled $752.93 billion.

    The newly released figures indicate that the U.S. dairy industry now contributes:

    • 3.5 percent of U.S. GDP
    • 3.3 million total jobs
    • $41.6 billion in direct wages for workers in dairy industry
    • $67.1 billion in federal, state and local taxes (not including sales taxes paid by consumers)

    For the first time, the total value of exports was included in the study, revealing the U.S. dairy industry is responsible for a total of $6.5 billion in exported goods and reinforces the importance of fair international trade agreements for the industry.

    “Every dairy company knows that dairy products offer significant benefits that go beyond improving consumers’ health, and our latest economic impact study provides specific numbers that reinforce just how true that is,” said Michael Dykes, D.V.M., IDFA president and CEO. “Whether it’s milk, cheese, ice cream, yogurt and cultured products, or dairy-derived ingredients, American dairy companies contribute significantly to the U.S. economy and their impact continues to grow year after year. IDFA’s members remain dedicated to making safe, delicious products that nourish and sustain consumers while delivering for our economy.”

    The report also demonstrates how dairy product categories contribute directly to the U.S. economy, including:

    • Cheese: Adds $55.4 billion in direct economic impact and supports 57,700 dairy industry jobs
    • Milk: Adds $49 billion in direct economic impact and supports 62,200 dairy industry jobs
    • Ice Cream: Adds $13.1 billion in direct economic impact and supports 28,800 dairy industry jobs
    • Yogurt & Cultured Products: Adds $6.8 billion in direct economic impact and supports 8,600 dairy industry jobs
    • Dairy Ingredients: Adds $17.7 billion in direct economic impact and supports 11,000 dairy industry jobs

    The study’s findings are also available in an interactive economic impact tool on IDFA’s Dairy Delivers® webpage where users can click on an interactive map of the U.S. to learn how dairy impacts their community. Just select an area of the country that interests you—options include the full U.S., any of the 50 states, or any of the 435 Congressional districts. Once you click on the state and/or district that interests you, select View/Print to generate your own detailed fact sheet or economic impact report. To learn more, visit www.idfa.org/dairydelivers.

  • USTR Report Cites Impediments to U.S. Dairy Exports

    The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) urged the Biden Administration to work to eliminate foreign tariffs on and nontariff impediments to U.S. exports, following the release today by the Office of the U.S. Trade Representative (USTR) of the 2021 National Trade Estimate Report on Foreign Trade Barriers.

    The annual report looks at progress made and challenges remaining on U.S. trade, investment and services in countries around the globe. Compiled from information from USTR, interagency partners and public stakeholders, this year’s report covers 65 countries and regions, including Arab League nations, the European Union (EU), key Asian markets and important Western Hemisphere destinations for U.S. dairy products.

    USDEC and NMPF submitted comments on the major trade obstacles facing the U.S. dairy industry last October, pointing out that tariffs and nontariff barriers in many countries remain significant roadblocks to American dairy exports. Several of those concerns were incorporated in USTR’s report including dairy trade issues in Mexico, Canada, China and the EU, among others. In addition, USTR highlighted in its release that the key agricultural trade barriers captured in the NTE included “restrictions on the ability of U.S. producers to use the common names of the products that they produce and export”.

    “Exports are extremely important to the U.S. dairy industry, which shipped more than $6.5 billion of product to destinations worldwide in 2020,” said Krysta Harden, President and CEO of USDEC. “Obstacles to those exports negatively affect the economic well-being of America’s dairy farmers and jeopardize dairy processing jobs and workers throughout the supply chain who support our industry. These barriers must be removed.”

    “We need USTR to continue pressing our trading partners to eliminate tariffs and nontariff barriers that restrict our dairy exports,” added Jim Mulhern, President and CEO of NMPF. “The best way to do that is by implementing new Free Trade Agreements and enforcing existing agreements.”

    USDEC and NMPF in their comments focused on barriers in key dairy export markets such as Canada, China, the EU and Mexico. Among the bigger obstacles cited by the organizations were the misuse of geographical indications (GIs) and unscientific import requirements and mandates.

    On GIs, for example, the EU has sought to effectively monopolize common cheese terms by attempting to prohibit American cheese makers from using names such as asiago, feta, gorgonzola, gruyere and parmesan and keep out imports of U.S.-made cheeses with those names, not only in EU nations, but in other countries as well.

    The EU also is a leading offender in employing prescriptive requirements to limit imports, including dairy products, imposing, for example, specific animal disease oversight and documentation procedures and limiting the use of veterinary drugs and commonly used antimicrobials. These are the kinds of barriers USDEC and NMPF urge USTR to remove to ensure exports of U.S. dairy products are available to consumers around the world and to protect the millions of American jobs supported by the U.S. dairy industry.