The dairy industry relies heavily on exporting their products through the East and Gulf Coast ports but with the labor strike, dairy farmers are at risk.  

A.J. Wormuth, owner of Half Full Dairy in Elbridge, said he is concerned about the port strike and how it will impact the supply chain.

“Any interruption in the supply chain in terms of imports and exports could end up being costly. About 20% of U.S. milk production is exported every year, so that’s a critical component to keep the product moving to keep demand and supply in balance,” Wormuth said.  

The milk from Half Full Dairy goes to a couple of different co-ops to be distributed. A disruption in the market would lower prices as inventories build up, Wormuth said.  

With increased input costs for farmers, minimum wage changes and a reduction in the overtime threshold for farmworkers in New York, margins have been tight this year.  

“The combined effect of that has been significant this year, about a $5,000 increase a week in our payroll and we can’t just go raise our prices to get that back out of the market,” Wormuth said.  

Dairy farmer and chair of the Northeast Dairy Producers Association Keith Kimball says the port strike is a major concern for New York dairy farmers.  

“New York’s dairy farms cannot afford significant market disruptions or economic uncertainty. We work within razor-thin margins and are unable to pass losses or cost increases on to consumers,” Kimball said.  

Dairy products are the number one agricultural commodity for New York. It accounted for $680 million in exports in 2022, according to data from the USDA.

In 2023, the dairy products exported through these two ports accounted for 21% of all U.S. dairy exports which is valued at $1.7 billion, according to the U.S. Dairy Exports Council.  

“Global customers rely on the reliability of the U.S. dairy industry. Delays caused by this strike not only risk damaging those relationships, but also severely impact perishable dairy products that require timely delivery,” said Krysta Harden, president and CEO of the U.S. Dairy exports Council in a press release.  

The dairy industry isn’t the only agricultural product facing trouble. $122 billion worth of agricultural products were transported through ocean ports in 2023 which accounts for over 75% of all U.S. agricultural exports, according to a market intel report from the American Farm Bureau Federation. Over half of the agricultural imports could be affected by these strikes too, leading to an impact of $1.1 billion per week.  

“Farmers and ranchers rely on international partners to sell billions of dollars of home-grown food to markets around the world. A disruption at the ports could leave perishable food rotting at the docks which threatens the livelihood of farmers,” said president of the American Farm Bureau Federation Zippy Duvall in a press release.

The lack of imports could lead to shortage of certain products such as bananas, coffee and other specialty items, Duvall said.  

“While there is a risk of shortages of some nutritional needs without importing food. America’s farmers grow a diverse range of food items that ensure the nation’s food independence,” he said.