The National Milk Producers Federation (NMPF) is raising concerns over the Trump administration’s plan to increase imports of foreign-raised beef, warning the policy could weigh on cattle values, dairy farm income and incentives for domestic beef production.
The Arlington, Virginia-based organization said the decision could have consequences extending beyond the U.S. beef sector because dairy farms have become an increasingly important source of beef production. NMPF President and CEO Gregg Doud said revenues from cull cows and calves are also an important part of dairy farm economics at a time when milk prices remain under pressure.
NMPF Highlights Dairy Industry’s Growing Role in U.S. Beef Supply
In a statement responding to the import plan, Doud emphasized the financial relationship between the dairy and beef markets.
“NMPF is concerned by the Trump Administration’s decision to increase imports of foreign-raised beef, which will have unintended consequences for U.S. cattle and dairy producers alike. Cull cow and calf sales are a key economic driver for U.S. dairy farmers and equates to 20% of annual dairy farm income, and greater than 20% of the U.S. beef production is now being supplied by dairy farms. Current beef prices are an important reason why we have the most dairy cows in the United States since 1992; meanwhile, U.S. milk production is up 2.7% versus last year. Both trends help keep beef and dairy products affordable for consumers; dairy is stepping up to solve the consumer challenge of higher beef prices.”
The federation’s position underscores how movements in cattle prices can influence dairy producers’ broader financial performance. Stronger beef prices can increase the value farmers receive for animals leaving dairy herds, providing an additional revenue stream alongside milk production.
Import Policy Could Affect Cull Cow Prices
NMPF said the federal government’s decision involves removing duties on imports of 300,000 metric tonnes of beef over the next 90 days. The organization argues that any immediate consumer benefit could be limited while the impact on producers may last longer.
“Policy-created disruption threatens the billions of dollars invested by U.S. dairy farmers and manufacturers to grow supply of beef and dairy products. For the second time this year, the federal government has significantly intervened into the U.S. beef market, this time to remove duties on imports of 300,000 mt of beef over the next 90 days. This will have a short-term, muted economic impact for consumers, but the effects on both dairy and beef producers could be felt for some time. This decision risks a reduction in the price dairy farmers receive for their cull cows and higher profits for foreign beef exporters, all for a potentially nominal decrease in the retail ground beef price.”
The federation’s concern centres on whether additional lower-cost imported beef could place downward pressure on the domestic cattle market, particularly the segment supplied by dairy and beef cull cows.
Group Questions Potential Consumer Price Benefits
NMPF also questioned whether removing tariffs would translate into meaningful savings for consumers at grocery stores.
“Again, removing the tariff isn’t likely to lower consumer prices, as the price of this imported product is already well below that of the comparable domestically produced product derived from U.S. cull dairy and beef cows, but it will certainly improve the profit margin for the exporter. The more consequential impact will be a delay in the necessary economic signal sent to U.S. beef producers to increase production, which may reduce domestic supplies in the longer term.”
That longer-term concern reflects the role prices play in encouraging farmers and ranchers to expand production. NMPF argues that weakening those signals could slow domestic supply growth and potentially complicate efforts to improve beef availability.
Dairy Farmers Rely on Strength in Beef Market
The federation said cattle revenues have become particularly important because milk prices remain relatively weak by historical standards.
“U.S. dairy farmers’ appreciation for the strength that beef prices have provided to their operations cannot be overstated, as milk prices continue to be low by historical standards. That appreciation extends to U.S. consumers who are increasingly demanding not only our exceptional dairy products but also the beef we produce. That’s the choice U.S. consumers are making, as it should be”
NMPF’s response highlights the increasingly interconnected economics of U.S. dairy and beef production. While the administration’s import policy is aimed at the beef market, the federation maintains that its effects could extend to dairy farm revenues, investment decisions and the longer-term development of domestic cattle supplies.