Milk, cheese, and butter play a prominent role in many food-based businesses, so staying abreast of dairy news and trends is equally important. Interra International is celebrating its 20th year in the Food Industry and sharing its knowledge, specifically in recent dairy news.
COVID-19 Sparks Volatility
Major price plunges occurred early on during the coronavirus pandemic as headlines broadcasted restaurant closures, diminished sales, and farmers dumping milk on the ground. With schools closed, prospects looked bleak for the dairy industry in March of this year.
However, here we are in June, enjoying some partial openings for dine-in food as well as restaurants continuing their curb-side pickup options. Prices have rebounded but it is not just the normal demand causing this increase.
Food Box Program
A large increase in US governments purchases, specifically for the new Food Box program, has definitely had an effect on the dairy market. The Food Box Program was launched with $3 billion dollars in funding. In under 30 days, the program contracted for $1.2 billion dollars in food products including fresh fruits and vegetables, dairy products, and meat products.
Not only did these Food Boxes help families in need, they also provided much needed support to the impacted agricultural businesses supplying the products, including the U.S. Dairy industry.
Vietnam Tariff Reductions
Another recent boon for the U.S. Dairy industry is the recent tariff reductions in exports to Vietnam. The U.S. Dairy Export Council (USDEC) received a confirmation on May 28, 2020 that Vietnam Prime Minister Nguyen Xuan Phuc has officially lowered the tariffs on dairy products and ingredients. These tariffs will be lowered by 50% or more allowing the U.S. Dairy industry to effectively compete in the Vietnam market. The tariff previously made dairy products and ingredients such as skim and whole milk powders, cheese, milk albumin, and protein isolate challenging to sell into the Vietnam market due to price point. The USDEC is working with Vietnam on a free-trade agreement which will further expand the U.S. Market share. These negotiations will be of great benefit to the U.S. Dairy industry.
Interra International, your business partner in global food trade, has an excellent track record as a trader of premium dairy products. We stay abreast of the industry developments and pass on the knowledge and the savings to our clients. Find the best value and supply for your food business by letting us do all the heavy lifting. Stress free sourcing and timely product delivery. We know our Dairy!
Leverage our network of dairy resources and work with our professional staff for the best dairy products at the best prices. We can help you find the right source at the right price! – Call today for more information +1 770-612-8101, or fill out our contact us form!