About 20% of U.S. milk production is exported annually, with about 40% of that going to Canada, Mexico, and China, according to Chuck Nicholson, an associate professor at the University of Wisconsin-Madison. If the domestic dairy industry gets only a little more milk than traders were expecting, prices drop as a result, Nicholson says. So if the dairy industry started trying to sell that 20% domestically instead of exporting it, prices would plummet, making it difficult for farmers to continue to operate.
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