In the news affecting dairy producers' bottom lines in early May 2025:
- U.S., U.K. reach trade deal that increases access for American farmers
- Producer sentiment improves on long-term optimism
- GDT index continues to climb
- FFAR, DMI, Zoetis call for research proposals to study connection between dairy cow health, economics and the environment
- IDFA announces 41st annual Capitol Hill Ice Cream Party on June 11
U.S., U.K. reach trade deal that increases access for American farmers
President Donald J. Trump and Prime Minister Keir Starmer announced a trade deal between the U.S. and the United Kingdom (U.K.).
“The deal includes billions of dollars of increased market access for American exports, especially in agriculture, dramatically increasing access for American beef, ethanol and virtually all of the products produced by our great farmers,” Trump said.
The deal is said to create a $5 billion opportunity for new exports for U.S. farmers, ranchers and producers, including more than $700 million in ethanol exports and $250 million in other agricultural products, such as beef.
Michael Dykes, DVM, the president and CEO of the International Dairy Foods Association (IDFA), said, “For too long, the U.K. has limited America’s food and agricultural exports to the world’s sixth largest economy and now President Trump’s deal promises to level the playing field. IDFA looks forward to studying the details of this agreement as they emerge, especially specifics on relief and new market access opportunities for U.S. dairy products.
“IDFA has been advocating for U.S. dairy to be part of those opportunities as we look to improve our bilateral cooperation and build upon the $19.5 million in dairy exports that the United States sent to the United Kingdom last year,” Dykes added.
Producer sentiment improves on long-term optimism
Farmer sentiment improved in the last month despite ongoing trade disputes with many of U.S. agriculture’s largest trading partners, according to the latest Purdue University/CME Group Ag Economy Barometer.
“Producers responding to the April survey overwhelmingly reported that they expect the increased use of tariffs by the U.S. to prove beneficial to the U.S. agricultural economy in the long run,” said James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.
Just over half of the producers surveyed were concerned about the imposition of tariffs making it more difficult to obtain inputs from their suppliers. Concerns were focused on the availability of fertilizer, parts for farm machinery and electronics, and crop chemicals.
The Ag Economy Barometer provides a monthly snapshot of farmer sentiment regarding the state of the agricultural economy. The survey collects responses from 400 producers whose annual market value of production is equal to or exceeds $500,000. Minimum targets by enterprise are as follows: 53% corn/soybeans, 14% wheat, 3% cotton, 19% beef cattle, 5% dairy and 6% hogs. Latest survey results, released May 6, reflect ag producer outlooks as of April 14-21.
GDT index continues to climb
The price index of dairy product prices sold on the Global Dairy Trade (GDT) platform is up by 4.6% in the auction held May 6. This is the third consecutive trading event to move higher.
Compared to the previous auction, prices for individual product categories were mostly higher. Lactose and cheddar cheese had big gains at up 16.8% and 12%, respectively. Whole milk powder, buttermilk powder and anhydrous milkfat were up 5.4%-6.2%, and butter was up 3.8%. Skim milk powder was up 0.5%. Mozzarella was the only product that traded lower, down 0.3%.
The GDT platform offers dairy products from several global companies: Fonterra (New Zealand), Darigold, Valley Milk and Dairy America (U.S.), Inalpi (Italy), Arla (Denmark), Arla Foods Ingredients (Denmark), BMI (Germany), Kerry Dairy (Ireland) and Solarec (Belgium).
The next GDT auction is May 20.
FFAR, DMI, Zoetis call for research proposals to study connection between dairy cow health, economics and the environment
The Foundation for Food & Agriculture Research (FFAR), Dairy Management Inc. (DMI) and Zoetis are launching the Dairy Health, Efficiency & Resource Dynamics (Dairy HERD) Initiative. The goal for this $1.3 million research collaboration is to advance research in animal health, ensure the economic viability of the U.S. dairy industry and improve environmental outcomes.
FFAR is currently accepting research proposals requesting between $500,000 and $1 million per project for projects lasting up to two years. The required matching funds for this opportunity have been secured, but additional matching funds are encouraged.
The Dairy HERD Initiative recognizes that animal health and welfare are top priorities for producers and consumers. The initiative advances research on the positive impacts of disease prevention and herd management on economic and environmental outcomes. These outcomes will help support the U.S. dairy industry’s collective 2050 environmental stewardship goals, which include reducing emissions, optimizing water use, and recycling and improving water quality. The initiative will help ensure that results are available to farmers and other stakeholders by incorporating them into existing models and decision support tools, enabling farmers to increase efficiency and profitability on their farms.
The Dairy HERD Initiative welcomes applications from all domestic and international higher education institutions, nonprofit and for-profit organizations and government-affiliated research agencies. Preapplications are due June 11.
For more information and to apply, visit the Dairy HERD Initiative page on FFAR’s website.
IDFA announces 41st annual Capitol Hill Ice Cream Party on June 11
Washington’s most popular summer celebration will return to the National Mall on June 11. The IDFA) 41st Capitol Hill Ice Cream Party will bring together thousands of guests, including members of Congress and officials from the executive branch, for a fun event showcasing America’s favorite frozen treats.
Whether your preference is a bowl of creamy chocolate ice cream, an ice cream sandwich or a refreshing float, the 41st Annual Capitol Hill Ice Cream Party will have a wide variety of America’s favorite ice cream treats. Over four decades, the event has grown into a tradition where chiefs of staff chill with interns, Blue Dogs scoop with Freedom Caucus members and policy wonks debate toppings – not politics.
“Each year, the Capitol Hill Ice Cream Party is IDFA’s chance to show gratitude to the dedicated individuals serving in Congress and across federal agencies,” said Michael Dykes, IDFA president and CEO. “Few things unite us like ice cream. This bipartisan event brings everyone together to enjoy some fun, connection and, of course, a scoop [or two] of America’s favorite frozen dessert.”
