Dairy

Italian Dairy Risking Commercial Retaliation from the US

Trump prepares retaliation as EU and US are struggling over Airbus and Boeing. Many EU food products could be involved: from cheese to yogurt and butter

The measure would be triggered in the summer and would represent a new problem for Italian dairy sector. After the estimated damage to Brexit, another strategic destination for Italian cheeses is now at risk. Despite the sharp slowdown in 2018, mainly due to the drop in exports of Pecorino cheese (-40%), Italy is the first country in the world for dairy exports to the US, which is the fourth destination of Italian dairy exports.

THE RISKS FOR ITALIAN DAIRY COMPANIES

Our companies export more than 30,000 tons of cheese to the USA, about a third of national exports outside the EU – said Giuseppe Ambrosi, president of Italian dairy producers Assolattefor a value exceeding 270 million euros. For some cheeses, moreover, this destination represents a fundamental market. This is the case of Pecorino Romano, which finds its first outlet in the USA with two thirds of export sales. Moreover, for Grana Padano and Parmigiano Reggiano the USA is the second most important country, after Germany. The introduction of duties on our cheeses would be a very hard blow for our sector. The risk is to become less competitive with a consequent reduction in the flow of exports.”

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