Could Mexican restaurants be looking to Australia for their dairy produce as the Trump administration freezes out its southern neighbour? We break down the latest on tariffs.
True blue cheddar could soon be added to tacos sold in Tijuana as America’s tariff tumult upends cross-border trade.
That’s according to South Australian Dairyfarmers Association president Robert Brokenshire, who says Mexican cafes and restaurants will be looking to Australia for their dairy produce as the Trump administration freezes out its southern neighbour.
Last month, US president Donald Trump slapped 25 per cent tariffs on all goods emanating from Mexico and Canada, with Mexican president Claudia Sheinbaum responding in kind with retaliatory tariffs.
Mr Brokenshire said America had long been a dominant supplier of cheese for burritos, enchiladas and tacos but the 2025 trade wars meant there was now an opening in the market.
“The trade war has created many problems but also opportunities and trade with Mexico could be one of those opportunities that come up for Australia,” the South Australian farmer said.
“Mexico has never been on Australian dairy’s radar because the US is literally next door. But tariffs take away that cost competitiveness that’s long been there and tariffs also break down general trade co-operation. Mexico is a big market and they’ll be looking for friendly dairy producing partners to deal with.”
However, Mr Brokenshire cautioned the US-Mexico trade war had its downsides.
“The dairy that usually travels south to Mexico will accumulate and need to be offloaded somewhere. So we may end up with another round of America dumping very cheap dairy here into Australia. It’s been done before but they’re likely to be more desperate to sell than ever.”
China has been Australian dairy’s number one export destination since the 1990s, with Japan and Singapore a distant second and third.
More than 85,000 tonnes of Australian dairy with a value of more than $A1 billion was exported to China in the 2023-24 financial year, while less than 72,000 tonnes was exported to Japan during the same 12-month period.
Mexico has never featured in the Australian dairy top 10 export nations, given its proximity to the United States.
Indonesia, Malaysia, Thailand and Vietnam also often feature in the top 10 export destinations for Australian dairy.
Australian Dairy Farmers president Ben Bennett said it was too early to determine whether Mexico would be a new market for Bega Tasty or Western Star butter.
He said agricultural trade worldwide was in a state of flux with hopes from primary producers at home and abroad that conditions would settle in the coming months.
“Everyone needs to take a deep breath. These tariffs are very concerning for all agriculture and farmers the world over hope some sense is returned and tensions ease,” Mr Bennett said.
You can now read the most important #news on #eDairyNews #Whatsapp channels!!!
You may be interested in
- Topics |
- Dairy
Legal notice about Intellectual Property in digital contents. All information contained in these pages that is NOT owned by eDairy News and is NOT considered “public domain” by legal regulations, are registered trademarks of their respective owners and recognized by our company as such. The publication on the eDairy News website is made for the purpose of gathering information, respecting the rules contained in the Berne Convention for the Protection of Literary and Artistic Works; in Law 11.723 and other applicable rules. Any claim arising from the information contained in the eDairy News website shall be subject to the jurisdiction of the Ordinary Courts of the First Judicial District of the Province of Córdoba, Argentina, with seat in the City of Córdoba, excluding any other jurisdiction, including the Federal.
Related
notes
BUY & SELL DAIRY PRODUCTOS IN
Latest News
Featured
Join to
Most Read
1.
2.
3.
4.
5.
News by State
World
eDairy News Spanish
eDairy News PORTUGUESE
