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Economist Says Cutting Trade Deals With China, Mexico More Important To Region's Dairy Farmers

ITHACA, NY (WSKG) - Dairy farmers across New York and Pennsylvania continue to struggle to meet costs. The announcement Sunday of a new trade agreement with Canada to replace NAFTA has some in the dairy industry hopeful, but others warn it’s not the solution to dairy farmers worries.

The new treaty will improve U.S. prices a bit,  but not enough to solve the problems facing most dairy farms because the reasons for low milk prices go beyond factors covered by the treaty, according to Andrew Novakovic, an agricultural economist at Cornell University.

"It’s way, way more important what we do with Mexico and China and what our general trade posture is," he said. "Trade is important to us, but trade with Canada is not the biggest worrier."

There are two New York dairy product companies benefit greatly from the treaty changes, according to Novakovic. However, the average family dairy farm is not likely to see changes that will have a great impact on their bottom line.

The treaty must be ratified by Congress and the legislatures of Mexico and Canada.