Dairy Exporter November 2021

Page 18

GLOBAL DAIRY UNITED STATES/CANADA

Cheese please: Words by: Anne Cote

O

ver the past decade the Canadian dairy industry has posted a significant trade imbalance, according to data from Agriculture Canada for 2020. Despite this grim news, the data from Agriculture Canada also indicates Canada’s dairy exports went up by 16.8% between 2019 and 2020. But the imbalance persists as import values rose by 6.68% over the same period with the result that import values remain at a level almost double the value of exports. The last two trade agreements signed by the Canadian government won’t help narrow this gap, especially in the cheese market. The Canada-European Union Comprehensive Economic and Trade Agreement (CETA), signed on October 30, 2016, in Belgium, allows Europe to export an additional 18,500 tonnes of cheese into Canada tariff-free. This is an addition to the previously negotiated tariff free quantity of 13,471t which was already making its way into the Canadian market from the EU. Most of this generous increase, 16,000t, falls into the “fine cheese” category causing Canadian fine cheese makers considerable concern as they vie for shelf space in supermarkets and boutique shops. But Canadian cheesemakers have even more tariff-free competition to worry about. On July 1, 2020 the Canada United-States, Mexico Agreement (CUSMA) came into effect and it gives United States cheesemakers the ability to ship 12,500 tonnes more by year six of the agreement and then grow by 1% for an additional 13 years. In October 2021, US dairy producers reported strong growth in dairy export markets with an 18% increase in cheese exports into the global marketplace led by strong demand by Mexico and Latin America; but it’s important to note that the US is one of Canada’s major competitors for cheese on its supermarket shelves. USDEC notes “cheese markets tend to decline seasonally in the back half of the year” but this year the 12% decline in cheese exports the US usually experiences during this period hasn’t happened. And, because global demand for cheese has risen by 6% this year compared to 18

US cheesemakers are ready to meet the challenges of filling the global need for cheese.

In October. 2021 US dairy producers reported strong growth in dairy export markets with an 18% increase in cheese exports.

historic gains of only 3%, the organisation expects US cheese will remain in high demand in global markets. There are two reasons for the optimistic outlook the USDEC is reporting. The first is that US pricing is highly competitive making cheese more attractive to buyers around the globe. The second is the availability of products. For example, over the past several years the state of Wisconsin, a major cheese producing region, has been pushing for better trade deals to help them sell excess cheese produced there. But at this year’s Dairy Expo in Madison, Wisconsin panelists were all smiles as they praised the ever-increasing demand for domestic dairy products as well as an expanding global market. With world demand expanding, US cheesemakers are ready to meet the challenges of filling the global need for cheese whether it’s in Canada, the EU, New Zealand, Latin America or Mexico, countries where consumers are already familiar with their products.

Dairy Exporter | www.nzfarmlife.co.nz | November 2021


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Articles inside

Keep the water flowing

5min
pages 86-88

The Dairy Exporter in November 1971

3min
pages 90-92

Want to save time milking?

2min
page 89

Former Lincoln student making a buzz from honey

6min
pages 80-81

Kieran McCahon hears the call of the land

6min
pages 82-83

LUDF: Cows approve of milking blend

6min
pages 84-85

Mastitis: Somatic cell counts - How low can you go?

6min
pages 74-75

Tools for timing effluent application

8min
pages 68-71

System in-line to cut methane

7min
pages 64-66

Soil carbon: Blame it on the worms

6min
pages 72-73

Wagyu: Calf contracts come with semen straws

3min
page 76

Winning with tetraploids

4min
pages 62-63

Soil Carbon: The promise in biochar

2min
page 67

MINDA: Sharing the technology

2min
page 77

Collaborating on forages

6min
pages 60-61

Endophytes key to ryegrass success

5min
pages 56-57

Lipids: Catching them in the rye

5min
pages 58-59

Treating the pasture right at Canvastown

6min
pages 52-53

Trevor Ellett: A ryegrass pioneer

3min
pages 54-55

Why do more on emissions?

3min
pages 44-45

Strong growth in sheep dairy

3min
pages 42-43

US tests of NZ-developed ryegrass

5min
pages 49-51

Saving on summer nitrogen

2min
page 41

Realising the ownership goal

8min
pages 38-40

Market View: Milk price silly season continues 12

3min
pages 20-21

Dispensers get farm fresh milk close to customers

4min
pages 30-33

Making the most of a Treaty settlement

7min
pages 22-24

Phil Edmonds reckons it’s time for banks to go back to the land

9min
pages 14-17

Mark Chamberlain detects change with a difference

3min
page 13

Global Dairy: US Cheesemakers on the march

5min
pages 18-19

At a wet Punakaiki, risk is real for the Reynolds family

3min
page 11

Hamish Hammond transitions to once-a-day milking

3min
page 12
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