Dairy Industry Pushes for Supply Chain Solutions Amid Export Disruptions

A dairy industry official brought urgent shipping and transportation concerns directly to federal lawmakers and White House officials in March, highlighting how ongoing disruptions are damaging America’s dairy export business.

Tony Rice, who serves as senior director of trade policy for the National Milk Producers Federation, appeared before a House Judiciary Subcommittee on March 17 to address ocean shipping problems affecting dairy exporters nationwide.

“Dairy farmers milk their cows 365 days a year,” Rice told lawmakers during the Administrative State, Regulatory Reform and Antitrust hearing. “For a dairy producer, these supply chain issues are not abstract policy concerns. When export shipments are delayed, cancelled, or become more expensive to move, the disruptions ripple back through the supply chain and ultimately affect farm income.”

The stakes are significant for America’s dairy sector, which shipped $9.6 billion worth of products totaling three million metric tons overseas last year. However, dairy exporters find themselves at the mercy of a small number of foreign-controlled shipping companies, creating vulnerability when transportation networks face problems.

During his congressional testimony, Rice advocated for several solutions including expanded domestic shipbuilding capabilities, enhanced Federal Maritime Commission supervision, and requiring shipping companies to be more transparent about their cargo booking practices.

Beyond traditional shipping delays, the industry now faces a growing threat from organized theft targeting shipping containers. Rice joined other supply chain representatives at a March 18 White House meeting with the National Economic Council to discuss this escalating problem. The group urged federal officials to allocate more resources toward dismantling criminal organizations that break into containers seeking valuable merchandise, often affecting dairy shipments in the process.

Meanwhile, the National Milk Producers Federation and U.S. Dairy Export Council are supporting congressional passage of the bipartisan Combating Organized Retail Crime Act. This legislation would provide the Department of Homeland Security with enhanced authority to pursue and arrest these criminal networks.

Dairy producers dealing with transportation and supply chain problems can reach Tony Rice at [email protected] for assistance.