The New NAFTA

[Benton]

(10-03-2018, 07:19 PM)NATI BENGALS Wrote: Econ 101 is telling me if our dairy is being shipped out that lowers the supply and increases the demand...

So my next vehicle will be more expensive and my milk and cheese?

According to the National Farmers Organization, milk prices have fallen 50 percent in the last four years. And given that Wisconsin has more dairy cows than all of Canada, this isn't going to have much impact on the over supply. It will be a .3 percent increase in exports, mostly in powdered milk (we would export 3.5 percent of Canada's total milk consumption under this deal, up from the current 3.2 percent).

The .3 percent more will be more than lost in the China tariffs on lactose and casein. China was the highest importer of US dairy after Canada and Mexico.

So, don't worry, your cheese will probably be the same price. Dairy farmers are unhappy, though, but their issue is having too much white stuff and not enough domestic consumption.