Ornua, Ireland’s leading dairy product exporter, reported that newly imposed tariffs by the United States are causing uncertainty among buyers. While some markets remain stable, others are slowing down, with buyers adopting a cautious stance that may disrupt trade and global economic growth.
Ornua, Ireland’s largest exporter of dairy products, highlighted growing uncertainty among global buyers due to recently imposed tariffs by the United States. Based in Dublin, Ornua represents a cooperative of Irish farmers and processors, marketing brands like Kerrygold across more than 110 countries.
According to Ornua’s latest April market report, several buyers are now adopting a ‘wait-and-see’ approach as they assess the impact of the new tariffs. The co-op emphasized that the move could potentially disrupt international trade and weaken broader economic growth trends.
After a relatively stable first quarter, the global dairy market is now facing headwinds. The United States announced that countries refraining from retaliatory measures would face a 10% tariff until July, while countries like Ireland saw initial tariffs spike to 20% on key agri-food products.
Ornua noted that the full impact remains uncertain, with different commodities likely to be affected unevenly. Despite these challenges, global milk supply projections remain modest, with annual growth not expected to exceed 0.5%, although milk solids might perform slightly better.
In Europe, the dairy sector braces for potential supply disruptions linked to ongoing animal health issues such as bluetongue and foot and mouth disease. Ireland, however, recorded a strong 9.4% increase in milk flows in January, and this trend is expected to continue.
Meanwhile, milk production trends vary elsewhere: German and French milk collections are declining, New Zealand reports growth due to favorable weather, and Chinese dairy production is contracting amid tightening profit margins.
Ornua’s warning signals a critical period ahead for the dairy industry, especially for exporters navigating increasingly complex global trade dynamics.
