There’s been a lot of back-and-forth controversy recently about the Trans-Pacific Partnership (TPP), the proposed agreement that would more closely link the economies of the U.S. and 10 other Pacific Rim countries.
But there may be a developing consensus that the partnership would be a good thing for Valley agriculture.
U.S. agricultural output will increase in most sectors due to increased market access within the partnership, according to the U.S. Department of Agriculture.
The agency forecasts that increased trade will boost U.S. dairy production by .5 percent and beef by .4 percent.
That may not seem like much, but in the dairy sector, it’s a big deal. Dairy finds itself increasingly producing more and more milk despite declining U.S. liquid milk consumption.
In 2014, Kings County was the third-biggest milk producer in the state, churning out 4.4 billion pounds worth a stunning $965.8 million, according to Carol Collar, a UC Cooperative Extension adviser.
Something has to be done with all that product to keep the price from collapsing. The answer has been to export 15 percent of U.S. dairy product, primarily as cheese, skim milk powder and whey.
That has Hanford dairy operator Brian Medeiros singing the praises of international trade.
“TPP is going to be very crucial for us,” Medeiros said.
According to him, declining liquid milk consumption in the U.S. is an important part of the equation.
“As we don’t have as many fluid gallons going to the store, and we have more cheese and whey products and all that good stuff … having somewhere to put the production that we keep gaining year after year is crucial,” he said.
Since dairies also send cows to slaughter, the beef sector is relevant to the industry’s health too.
The proposed agreement would cut beef tariffs that are as high as 50 percent in some Pacific Rim countries. The U.S. in 2014 exported almost $4 billion in beef to the TPP region.
According to USDA, without the partnership, “U.S. beef exports face a competitive disadvantage because Australia is able to export beef to Japan at lower tariff rates due to the Japan-Australia Economic Partnership Agreement.”
Despite all the positive USDA comments, however, Western United Dairymen lobbyist Charlie Garrison said the milk producers’ organization is reserving judgment until an actual deal comes out.
President Barack Obama is pushing for trade promotion authority that would allow his administration to negotiate the deal without Congress being able to alter it after the fact.
Such a proposal cleared the Senate last month 62-37. It’s likely to clear the Republican-dominated House, which has largely sided with Obama on this issue.
Garrison said Western United Dairymen’s approval will depend on whether there is enough balance between other nations’ increased access to the U.S. market and American access to their markets.
In general, Garrison said that California dairy products would compete well in such an environment.
“We think this deal could be helpful,” he said. “We just want to see it in balance.”
In the big picture of California agriculture as seen from the California Farm Bureau Federation, the proposed agreement looks like a winner.
“We are very supportive of TPP,” said Josh Rolph, the federation’s manager of federal policy.
“With Canada and Mexico being involved, and Japan, those three are in the top-five of our trading partners,” he said. “I think we stand to gain a lot in terms of market access.”
Rolph doesn’t see a massive influx of agricultural products flooding the U.S. as the result of the deal. The reason? Few countries have the advanced worldwide transportation and distribution system that the U.S. enjoys.
Rolph said that China, which has that capability, is the main competition for U.S. agricultural exports in the region.
Rolph called the Senate’s approval of fast-track trade promotion authority “a major goal [achieved].”
“It all hinges on whether Congress grants trade promotion authority to the president,” he said.
But there may be a developing consensus that the partnership would be a good thing for Valley agriculture.
U.S. agricultural output will increase in most sectors due to increased market access within the partnership, according to the U.S. Department of Agriculture.
The agency forecasts that increased trade will boost U.S. dairy production by .5 percent and beef by .4 percent.
That may not seem like much, but in the dairy sector, it’s a big deal. Dairy finds itself increasingly producing more and more milk despite declining U.S. liquid milk consumption.
In 2014, Kings County was the third-biggest milk producer in the state, churning out 4.4 billion pounds worth a stunning $965.8 million, according to Carol Collar, a UC Cooperative Extension adviser.
Something has to be done with all that product to keep the price from collapsing. The answer has been to export 15 percent of U.S. dairy product, primarily as cheese, skim milk powder and whey.
That has Hanford dairy operator Brian Medeiros singing the praises of international trade.
“TPP is going to be very crucial for us,” Medeiros said.
According to him, declining liquid milk consumption in the U.S. is an important part of the equation.
“As we don’t have as many fluid gallons going to the store, and we have more cheese and whey products and all that good stuff … having somewhere to put the production that we keep gaining year after year is crucial,” he said.
Since dairies also send cows to slaughter, the beef sector is relevant to the industry’s health too.
The proposed agreement would cut beef tariffs that are as high as 50 percent in some Pacific Rim countries. The U.S. in 2014 exported almost $4 billion in beef to the TPP region.
According to USDA, without the partnership, “U.S. beef exports face a competitive disadvantage because Australia is able to export beef to Japan at lower tariff rates due to the Japan-Australia Economic Partnership Agreement.”
Despite all the positive USDA comments, however, Western United Dairymen lobbyist Charlie Garrison said the milk producers’ organization is reserving judgment until an actual deal comes out.
President Barack Obama is pushing for trade promotion authority that would allow his administration to negotiate the deal without Congress being able to alter it after the fact.
Such a proposal cleared the Senate last month 62-37. It’s likely to clear the Republican-dominated House, which has largely sided with Obama on this issue.
Garrison said Western United Dairymen’s approval will depend on whether there is enough balance between other nations’ increased access to the U.S. market and American access to their markets.
In general, Garrison said that California dairy products would compete well in such an environment.
“We think this deal could be helpful,” he said. “We just want to see it in balance.”
In the big picture of California agriculture as seen from the California Farm Bureau Federation, the proposed agreement looks like a winner.
“We are very supportive of TPP,” said Josh Rolph, the federation’s manager of federal policy.
“With Canada and Mexico being involved, and Japan, those three are in the top-five of our trading partners,” he said. “I think we stand to gain a lot in terms of market access.”
Rolph doesn’t see a massive influx of agricultural products flooding the U.S. as the result of the deal. The reason? Few countries have the advanced worldwide transportation and distribution system that the U.S. enjoys.
Rolph said that China, which has that capability, is the main competition for U.S. agricultural exports in the region.
Rolph called the Senate’s approval of fast-track trade promotion authority “a major goal [achieved].”
“It all hinges on whether Congress grants trade promotion authority to the president,” he said.
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