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Dairy economist says Canada might take more dairy market if NAFTA talks fail

A dairy economist is concerned about another scenario that could bring trouble to U.S. dairy producers if the NAFTA talks fall apart.

Mark Stephenson is the Director of the Center for Dairy Profitability at the University of Wisconsin in Madison.  Like many in agriculture, he is concerned about the possibility of not having a NAFTA agreement if negotiations fall apart.  “Mexico is our largest customer.  About 40% of our exports go to Mexico so we wouldn’t want to lose those.  Those would be pretty important to us.”

To make matters worse for the U.S., Stephenson says the 11 remaining Trans-Pacific Partnership nations are looking to finalize that agreement, which means Canada and Mexico could squeeze the U.S. even further.  “Canada and Mexico could look at favorable treatment between those two countries so that Canada becomes a preferred supplier for Mexican needs of dairy as opposed to the U.S. under that kind of condition.  That would be especially true if NAFTA fails.”

Stephenson spoke to Wisconsin county and town government officials, and the Professional Dairy Producers during the Agricultural Community Engagement seminar Tuesday in Stevens Point, Wisconsin.