U.S. dairy exports make big inroads into Canada

Apr 01, 2025

Trade data shows that the United States is selling more dairy products to Canada.

In the last few years, American exports of cheese, butter, whey and other dairy products to Canada have climbed by 67 percent — going from C$525 million in 2021 to $877 million in 2024, using data from Agriculture Canada.

It’s a big win for U.S. dairy farmers, but that’s not the story being told by president Donald Trump.

“Canada must immediately drop their Anti-American Farmer Tariff of 250 per cent to 390 per cent on various U.S. dairy products, which has long been considered outrageous,” he said on Truth Social in early March.

Trump is exploiting only part of the story on dairy trade between the U.S. and Canada because he’s ignoring the export data.

Unfortunately, the tariffs are very large and are something that is easily distorted, says an agricultural economist from Cornell University.

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Video: Selling Hay for 40 Years: Fritz Trauttmansdorff, Dunlea Farms

Fritz Trauttmansdorff came to Canada from Austria in 1980, bought a 45-cow dairy farm at Jerseyville, and within two years had more hay than he knew what to do with. He sold the quota in 1986, went debt-free, and built a hay business that has kept some of the same customers for forty years. Today Dunlea Farms runs about 2,500 acres — roughly 600 of it hay, the rest IP soybeans and grain corn — and Fritz makes the case that hay isn't the crop you grow when grain doesn't work. It's the crop that makes the grain work.

"If you grow corn, soybeans and wheat, you're on a three-wheeler. If you put hay in the rotation, you're on a four-wheeler."

WHAT WE COVER • Why the hay market moves independently of the Chicago Board — and what that does for farm-level risk
• The real cost of a mistake: five bushels in grain, versus the whole crop in hay
• Getting a second job out of the same iron — planting tractors that mow all summer, tillage tractors that bale
• How a grain farmer can get hay into the rotation without buying a single piece of hay equipment
• Drilling Timothy in the fall and double-cropping soybeans into it the next June
• What it actually takes to go all-in: roughly 500 acres, good sheds, and a baler you didn't buy used
• Local, regional and international hay markets — and choosing which one you're building for
• Why 40-year customer relationships are the asset, not the equipment