Prices for dairy products could drop between 5 percent and 10 percent due to U.S. farmers losing some international markets as a result of tariffs, according to Strategic Resource Group. The group also expects meat prices to drop 5 percent initially, with a maximum of 12 percent due to oversupply and insufficient demand in the U.S. alone, reports the Milwaukee Journal Sentinel.
Mexico buys nearly a quarter of all dairy products exported by the U.S., and the American dairy industry is coping with $387 million in Mexican tariffs of between 15 and 25 percent on cheese. Grocery analyst Phil Lempert notes that high-margin items, such as breakfast cereals, will be able to withstand attacks on grain pricing, but foods with multiple ingredients, such as frozen dinners, won’t. Also at risk for higher prices are fruits such as berries and avocados, as domestic supply is augmented by exported produce during the U.S. offseason, according to the report.
Reference: Specialty food assc