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U.S. Dairy at a Global Crossroads

Don Blayney, Mark J. Gehlhar, H. Christine Bolling, Keithly Jones (), Suchada Langley (), Mary Anne Normile and Agapi Somwaru ()

No 7209, Economic Research Report from United States Department of Agriculture, Economic Research Service

Abstract: Current dynamics in world dairy markets and the potential for global and domestic trade policy reform are bringing the U.S. dairy sector to a new crossroads as it faces competitive forces from outside its borders. Those forces—demand for new products by consumers in industrialized countries, changes in technology, rapid economic growth in emerging developing countries, particularly in Asia, and the increasing role of multinational firms in domestic and global dairy markets—are leading to increased dairy consumption, more opportunities for dairy product trade, and foreign direct investment benefiting both U.S. consumers and producers. As global demand for milk and new dairy products expands, the roles of policies that support prices are diminishing, while the roles of flexibility and innovation aimed at improving competitiveness are growing.

Keywords: International dairy markets; dairy trade; dairy policy; tariffs; production quotas; foreign direct investment; cheese; butter; dry milk powders; Agribusiness; Livestock Production/Industries (search for similar items in EconPapers)
Date: 2006
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