Dairy co-ops wanting to sell their dry milk powder have seen about a 10 percent decline in prices since the first of the year, apparently due to the impact of all the bluster over trade and Mexico including threats to ditch NAFTA, the end of TTP, talk of Mexico paying for a border wall and promises to enact a border tax on goods coming from Mexico.
Mr. Trump’s Press Secretary Sean Spicer says the president was thinking about financing his long-promised southern border wall with a 20 percent tax on “imports from deficit countries, like Mexico.”
Mexico is not waiting to react.
Dairy Market News reports some Mexican buyers now prefer to source their skim and nonfat dry milk “from other countries aside from the United States. In addition, Mexican skim milk powder production has been stronger compared to a couple weeks ago.” Mexico accounted for 43 percent of U.S. nonfat dry milk and skim milk powder exports in 2016.