July 19, 2004

US Dairy Farmers Threatened By Australian Imports
 

A trade agreement with Australia could open the door for Australian milk and dairy products to enter the United States.

The resulting lower milk prices would be welcomed by U.S. consumers but not by U.S. dairy farmers.

For U.S. consumers, increased agricultural trade has kept U.S. food prices low while giving them access to off-season fruits and vegetables.

But for U.S. farmers, free trade has been a mixed blessing.

U.S. farm exports have increased 15 percent over the past five years to $56.2 billion, according to U.S. Department of Agriculture data.

But farm imports have grown faster - nearly 26 percent over the same five years to $47.3 billion.

American growers have boosted exports of crops like soybeans, almonds, beef and cotton. But farmers growing garlic, citrus and tomatoes along with some cattle ranchers have suffered from increased foreign competition.

The Bush administration has pushed ahead with trade deals with Australia, Morocco and Central America that promise to open up some foreign markets to U.S. goods but also would increase competition for some U.S. farmers.

Chris Garza, a trade specialist at the American Farm Bureau, said U.S. agriculture must increase exports to keep growing. The Australian deal will be a wash for U.S. farmers, who will export more soybeans, seed oils and fruit to offset dairy and beef losses, he said.