In 2015 Alibaba Group founder Jack Ma told a CNBC interviewer that the time to worry about next quarter was two or three years ago. If you are thinking today about what you are going to do in the next three months, you’ll be in trouble, he said.
The 100 largest dairy processors in North America clearly are planning ahead. They are building new plants and adding to existing ones, even though at least 30% of the companies reported lower sales in 2015 than in 2014. They are not going to let a one-year blip derail their plans for the future.
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If you manufacture branded dairy foods, then you should consider taking on private label products if you have the capacity. By manufacturing foods and beverages for other companies, dairy plants can keep their production lines moving.
Before the Trans-Pacific Partnership (TPP), U.S. cheese exporters faced a 245% out-of-quota tariff if they wanted to ship to Canada. After TPP is implemented, U.S. cheese exporters will continue to face a 245% out-of-quota tariff, but with the opportunity to compete for a larger quota of various cheeses.
At issue is a World Health Organization proposal written in January that seeks to prohibit the promotion of milk and milk products to children under the age of three. In April, The National Milk Producers Federation (representing dairy farmers) and the International Dairy Foods Association (representing dairy processors) urged members of Congress to insist upon a more thorough analysis of the proposal.