UNFAIR PRACTICES.
MARIA: JOINING US TO TALK MORE
ABOUT THAT ARE THREE DAIRY
FARMERS FROM AMERICA'S
HEARTLAND, MARK CHECK, A
MINNESOTA DAIRY FARMER, JIM
OSTRUM, CEO OF MILK SOURCE WITH
FARMS THROUGHOUT THE U.S. AND
JEFF SWAGGER, PRESIDENT OF
SATORI CHEESE.
THANK YOU FOR JOINING US THIS
MORNING AND WEIGHING IN.
JEFF, TELL US HOW THE TARIFFS
ARE AFFECTING YOUR CHEESE
EXPORTS.
>> ROUGHLY 10% OF OUR BUSINESS
IS EXPORT BUSINESS.
WE HAD TO REDUCE BASICALLY OUR
SELLING PRICE TO COVER THE
THERE SO THE CONSUMERS AREN'T
SEEING AN IMPACT ON IT.
WHAT WAS PROFIT AABLE BUSINESS A
WHAT WAS PROFIT AABLE BUSINESS -
WHAT WAS PROFIT AABLE BUSINESS P
WHAT WAS PROFIT AABLE BUSINESS O
WHAT WAS PROFIT AABLE BUSINESS I
WHAT WAS PROFIT AABLE BUSINESS A
WHAT WAS PROFIT AABLE BUSINESS L
WHAT WAS PROFIT AABLE BUSINESS E
IS NOW UNPROFITABLE OR BREAKEVEN
AT BEST.
MARIA: WHAT WOULD YOU LIKE TO
SEE HAPPEN, JEFF?
WHAT WAS YOUR LIFE LIKE BEFORE
PLACE, WE WERE FOCUSED ON
GROWING THE BUSINESS AND GROWING
PROFITABLE BUSINESS AROUND THE
WORLD.
NOW WE'RE FOCUSED ON MAINTAINING
BUSINESS.
IT'S NOT GOOD FOR THE LONG TERM.
MARIA: JIM, WHEN WILL DAIRY
PRODUCERS FEEL THE EFFECT OF
THESE TARIFFS OR HAVE YOU
ALREADY IN YOUR DAIRY BUSINESS,
JIM?
>> GOOD MORNING.
YES, THE DAIRY INDUSTRY'S
FEELING THE EFFECTS, I WOULD SAY
SUBSTANTIALLY.
I THINK WHAT SEPARATES OUR
SITUATION FROM REALLY THE REST
OF THE COUNTRY IS THAT WE HAVE
JUST RECENTLY STARTED TO COME
OUT OF A PRETTY SUBSTANTIAL
RECESSION AS AN INDUSTRY.
AND JUST AS WE'RE SEEING SOME
UPWARD TICK TO FUTURES PRICES,
THE TRADE WAR BROKE OUT.
I ESTIMATE THAT THE INDUSTRY'S
GOING TO LOSE ABOUT -- AND IS
LOSING ABOUT $10 MILLION A DAY,
$3.6 BILLION A YEAR, JUST IN
DAIRY.
SO THAT'S NOT SOYBEAN.
THAT'S NOT PORK.
THAT'S JUST DAIRY.
AND I CAN ALSO TELL YOU THAT I
KNOW PERSONALLY LARGE FARMS AND
SMALL FARMS THAT ARE UNDER
IMMENSE STRESS AND THEY DON'T
HAVE A LOT OF ALTERNATIVES TO
SURVIVE THIS.
SO WE WELCOME HELP FROM THE
GOVERNMENT, FROM THE DEPARTMENT
OF AGRICULTURE AND SECRETARY
PERDUE.
I THINK IT'S GOING TO BE NEEDED.
MARIA: SO THIS -- YOU'RE SAYING
THIS $12 BILLION IS REALLY
NEEDED RIGHT NOW.
I MEAN, THE QUESTION OF COURSE
BECOMES WHEN DOES IT END.
IS THE GOVERNMENT GOING TO START
DOLING OUT MONEY TO EVERY
INDUSTRY AFFECTED BY THE
TARIFFS?
>> I THINK THAT'S A VERY FAIR
POINT.
I DON'T KNOW ANYBODY IN
AGRICULTURE THAT WANTS ANY
GOVERNMENT SUBSIDY.
WE WANT A FREE MARKET.
I URGE THE WHITE HOUSE TO
NEGOTIATE AGGRESSIVELY, FIND
PARTNER.
WE'VE ALREADY LOST MARKETS TO
MEXICO.
OUR MARKETS TO CHINA AND CANADA
CAN GET WILL HELP THE INDUSTRY
TO MOVE FORWARD AND ALL OF
AGRICULTURE IN GENERAL.
MARIA: LET ME MOVE ON TO YOU,
MARK.
TELL US ABOUT YOUR DAIRY FARM.
HOW IS IT DOING RIGHT NOW?
WILL THIS HELP OVER THE LONG
TERM?
OR ARE YOU ALSO LOOKING AT A
MONEY LOSING SITUATION?
>> THIS IS A SHORT-TERM FIX.
WE NEED TO BE ON FAIR TRADE.
I HONESTLY, OUR DAIRY FARM IS
STRUGGLING RIGHT NOW, PROBABLY
WORSE THAN IT EVER HAS.
I DO AGREE WITH PRESIDENT TRUMP.
WE NEED TO FIX THIS LONG TERM,
SO THAT WE CAN HAVE SUSTAINABLE
AGRICULTURE.
MARIA: ARE YOU SEEING HIGHER
EXPENSES AND ARE YOU PASSING
THEM ON TO THE CONSUMER AS A
RESULT OF THE HE RETALIATION?
>> WE REALLY CAN'T PASS IT ON.
WE HAVE A PERISHABLE PRODUCT.
WE MILK OUR
WE MILK CUR
WE MILK COWS.
IS.
IT'S ALWAYS BEEN.
WHAT OTHER BUSINESS REALLY PUTS
A PRODUCT OUT THERE WITHOUT
KNOWING THE RETURNS.
MARIA: WHAT DO YOU WANT TO SEE
FROM THE ADMINISTRATION AT THIS
POINT?
JEFF, KICK US OFF ON THIS ONE AS
WELL.
WHAT WOULD YOU LIKE TO SEE THE
PRESIDENT DO AT THIS POINT?
>> I THINK WE WOULD LIKE TO SEE
FREE TRADE AS PEOPLE HAVE
MENTIONED HERE.
WE NEED TO GET TRADE AGREEMENTS
IN PLACE.
EUROPE'S AHEAD OF US.
THEY'VE GOTTEN FREE TRADE
AGREEMENTS RECENTLY DONE WITH
CANADA AND MEXICO AND WE'RE
SITTING ON THE SIDELINES.
WE NEED THOSE AGREEMENTS IN
PLACE.
MARIA: RIGHT.
BUT THE PRESIDENT SAID LOOK,
LET'S DROP ALL TARIFFS.
THAT WENT UNANSWERED, JEFF.
YOUR THOUGHTS ON THE SAME
QUESTION?
WHAT DO YOU WANT TO SEE OUT OF
GOVERNMENT NOW?
IS THIS GOING TO BE EFFECTIVE,
$12 BILLION IN AID FOR YOU?
>> IT'S NOT GOING TO AFFECT THE
MANUFACTURERS AT ALL.
FARMERS NEED THE HELP.
IT NEEDS TO GO THERE.
BUT $12 BILLION IS NOT GOING TO
-- AS JIM MENTIONED,
$3.6 BILLION IN A YEAR IS JUST
DAIRY.
IT'S NOT GOING TO COVER THE
OTHER MARKETS.
THE FARMERS.
HE SAYS EVERY TIME I SEE A WEAK
POLITICIAN ASKING TO STOP TRADE
WHAT CAN THEY BE THINKING, JUST
GOING TO CONTINUE AND LET OUR
FARMERS AND COUNTRY GET RIPPED
OFF?
LOST $817 BILLION ON TRADE LAST
YEAR.
NO WEAKNESS.
YOUR THOUGHTS ON THE PRESIDENT'S
TWEET RIGHT NOW?
>> I AGREE WITH THE PRESIDENT.
WE HAVE TO STAND FIRM.
WE HAVE TO STAND UP.
CONGRESS HAS TO STAND UP AND
FIGHT FOR THIS FREE TRADE.
IT JUST NEEDS TO BE DONE.
THIS HAS BEEN A LONG TIME LIKE
THIS.
THIS ISN'T JUST SOMETHING
MARIA: WHAT ARE YOU GOING TO
DO?
JIM, WEIGH IN HERE.
IF THIS IS SORT OF THE LAW OF
THE LAND, THAT OUR TRADING
PARTNERS ACROSS THE WORLD DO NOT
BACK DOWN AND THEY RETALIATE AND
THEY TARGET THE FARM BELT?
>> I THINK WHAT'S IMPORTANT, AND
THERE'S A MASSIVE TRANSFER OF
AGRICULTURAL PRODUCERS ELSEWHERE
BECAUSE THEY ARE TAKING OUR
MARKET FROM US BECAUSE OF THESE
TARIFFS.
SO WHILE I AGREE WITH LEVELING
THE PLAYING FIELD, THE PLAYING
FIELD IS GETTING SWIPED CLEAN
HERE IN THE UNITED STATES
BECAUSE WEALTH IS BEING
TRANSFERRED.
I THINK GOING FORWARD
UNFORTUNATELY WE'RE IN COMMODITY
OUT OF THE DAIRY RECESSION AND
STARTING IN MARCH AND APRIL, NOW
WE'RE GOING TO HAVE TO SOLVE
THIS WITH PEOPLE LEAVING THE
INDUSTRY AND THAT'S REALLY
HEART-BREAKING FOR MANY PEOPLE.
FAMILIES, WE IN AGRICULTURE, WE
RAISE OUR CHILDREN TO RAISE
FARMERS, OUR GRANDCHILDREN, AND
IT IS GOING TO BE A VERY PAINFUL
PROCESS IF WE DON'T SOLVE THIS
TRADE PROBLEM.
MARIA: DO YOU THINK THIS AID IS
A GOOD IDEA FROM THE GOVERNMENT?
DAIRY IS 3.2 OR $3.6 BILLION OF
IT, IT'S PROBABLY NOT GOING TO
ALONG.
MARIA: AND SO IN TERMS OF SOLID
TRADE DEALS, YOU JUST HEARD
SONNY PERDUE SAYING LOOK, WE'RE
PROBABLY GOING TO GET SOMETHING
DONE WITH MEXICO SOONER THAN
LATER, HOPEFULLY CANADA FOLLOWS
SUIT.
IS THAT WHAT YOU WOULD LIKE TO
SEE, JIM?
>> YEAH, IN THAT ORDER.
I THINK THAT'S GOING TO BE VERY
ESSENTIAL TO OUR SUCCESS.
>> YES, I DO.
MARIA: JEFF, FINAL WORD HERE.
>> DEFINITELY MEXICO FIRST,
CANADA SECOND AND REALLY ON THE
DAIRY SIDE WE'VE GOT TO GET RID
OF THE SUPPLY SIDE MANAGEMENT
THAT CANADA HAS FOR DAIRY AND
GET TO A TRUE FREE TRADE
AGREEMENT UP THERE.
MARIA: WE WILL LEAVE IT THERE.