A century-old Canadian dairy producer is seeking to expand into emerging Asian markets in the face of the sweeping global tariffs imposed by U.S. President Donald Trump.
The United States had a trade surplus of 530 million Canadian dollars with Canada in 2024, but the Trump administration still accused Canada of unfair trade practices and imposed additional tariffs. For now, the tariffs mainly impact the steel and auto industries, but the administration has threatened to take aim at more product categories, including dairy.
That could significantly increase supply chain costs, forcing Canadian dairy producers to either raise prices or risk losing their market share.
Like many other Canadian dairy producers, Avalon Dairy relies on the U.S. raw materials and processing ability and sells its finished products to the U.S. market. Now, it finds itself grappling with the potential impacts of the tariffs.
"Our goal is not to replace high cost. It's to maintain our quality. But we could see increases. We could see increases. And if it's 10 percent, it could be up to 40-50 cents per container on a product that sells and retails for five dollars," said Russ Rimmer, CEO of Avalon Dairy.
Avalon Dairy is also shifting its focus toward emerging Asian markets, where fewer trade restrictions provide better opportunities for growth.
"We lend that back into our Plan B's. The Asian market is unique for us. We don't have those tariffs and duties that are restrictive to our prices. So therefore it makes it a huge opportunity for us," Rimmer said.
Century-old Canadian dairy producer looks to overseas markets amid US tariff threats
Century-old Canadian dairy producer looks to overseas markets amid US tariff threats
