IFA warns milk prices paid to farmers are under threat from Trump’s tariffs
Dairy exports to the US are currently valued at €830m.
Tariff increases by the US pose a significant threat to Irish food and drink exports into the US, the IFA has warned.
The tariffs are proposed to come into effect on April 2, impacting a range of goods. IFA analysis conducted by chief economist Tadhg Buckley found products such as Kerrygold might be particularly impacted.
“Kerrygold is now the second best-selling butter brand in the US,” said Mr Buckley. Almost €500m worth of Kerrygold products was sent to America in 2024. This accounts for 7.5% of our total dairy exports, currently valued at €830m.
“That helps to underpin the milk price paid to Irish dairy farmers. Global dairy markets are in relatively good health at the moment, but the introduction of tariffs could have far-reaching impacts as we hit the peak supply period in Ireland,” explained Mr Buckley.
Ireland exported approximately €1.9bn worth of food and drink to America last year. The US market accounts for around 11% of our total food and drink exports in Ireland.
Dairy (€830m) and drinks, the majority of which is whiskey, at €900m, exported to the US market account for 91% of the €1.9bn figure. Other exports make up the remainder, with pigmeat valued at €23m, beef at €8.8m, and seafood at €3.8m.
Discussing Trump’s proposed tariffs, IFA President Francie Gorman said: “We have succeeded in gaining a foothold in what is a large market. Not only that, but we have done it with some very strong brands that are built on the foundation of farmers producing quality material for processing. The scale of the tariffs being talked about would have a serious impact on what we have achieved.”
Mr Buckley also mentioned there would be “real concerns for the grain sector if the drinks sector is hit.”
Examining the EU and US relationship for food and drink there is a trade surplus on the EU side of €17.6bn which is proportionally greater than the overall trade surplus for all goods.
“The danger is that a trade war will hit the value of our exports. Within the EU, our export profile as a proportion of what we produce is far greater than most other countries,” warns Mr Buckley.
