IDFA Welcomes USITC Findings on Global Nonfat Milk Solids, Urges U.S. Government to Address Concerns in USMCA Review

IDFA Welcomes USITC Findings on Global Nonfat Milk Solids, Urges U.S. Government to Address Concerns in USMCA Review

WASHINGTON, May 28, 2026 -The International Dairy Foods Association (IDFA) today said a new U.S. International Trade Commission's (USITC) report on global competitive conditions in the nonfat solids (NFS) market highlights strong U.S. and global demand for milk-based protein and offers timely analysis of global dairy pricing and production policies as the United States prepares for the upcoming review of the U.S.-Mexico-Canada Agreement (USMCA).

The USITC report identifies the European Union, New Zealand and the U.S. as leading global suppliers of NFS products, with the U.S. showcasing the "greatest capacity for milk supply and component growth."

In addition, the report zeroed in on the investments and policies which have enabled Canadian NFS products to become a "growing presence in global markets," despite the small scale of milk production in Canada relative to competitors. The USITC found that Canada's milk supply management system effectively "unlinks" milk farm prices from milk component prices, allowing for greater competitive advantage for Canadian NFS production.

"IDFA applauds the U.S. government's commitment to examining the global NFS marketplace," said Michael Dykes, president and CEO of IDFA. "For years, IDFA members have raised concerns about Canada's policies that distort global NFS markets. While the report findings are a welcome development, there is still work to be done to mitigate the continued threat of Canada's policies and their impact on the global market."

IDFA participated in the USITC investigation, representing the U.S. dairy processing and packaging industry perspective through expert testimony at official hearings and submission of official comments. In July 2025, IDFA Senior Vice President of Trade and Workforce Policy Becky Rasdall Vargas testified on the impacts of Canadian pricing policies on U.S. processors. IDFA also submitted a detailed economic analysis, which quantified the impacts of other competing nations' pricing structures on U.S. dairy's competitiveness.

"The report notes that Canada's milk supply management system mitigates the high cost of milk production for NFS producers. These are exactly the kinds of policies and market outcomes that were the impetus behind the provisions of the U.S.-Mexico-Canada Agreement, and which IDFA continues to seek resolution through the USMCA review," said Rasdall Vargas. "IDFA looks forward to working with USTR to ensure fair pricing policies are upheld by Canada and all key trading partners."

IDFA will continue to support trade policies that expand market access, establish balanced competition and maintain the global supply chains essential to U.S. dairy.

For more information or to access IDFA's trade-related resources, please visit https://www.idfa.org/trade.

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Contact: [email protected]

The International Dairy Foods Association (IDFA), Washington, D.C., represents the nation's dairy manufacturing and marketing industry, which supports more than 3 million jobs that generate $198 billion in wages and $779 billion in overall economic impact. IDFA's diverse membership ranges from multinational organizations to single-plant companies, from dairy companies and cooperatives to food retailers and suppliers, all on the cutting edge of innovation and sustainable business practices. Together, they represent most of the milk, cheese, ice cream, yogurt and cultured products, and dairy ingredients produced and marketed in the United States and sold throughout the world. Delicious, safe and nutritious, dairy foods offer unparalleled health and consumer benefits to people of all ages.