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Canada: Century-old Canadian dairy producer looks to overseas markets amid US tariff threats

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Storyline: 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. Avalon Dairy is also shifting its focus toward emerging Asian markets, where fewer trade restrictions provide better opportunities for growth. Shotlist: Burnaby, Canada - Recent: 1. Various of dairy production line 2. Various of worker putting dairy products into box 3. Workers in factory 4. SOUNDBITE (English) Russ Rimmer, CEO, Avalon Dairy (ending with shots 5-6): "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." 5. Dairy products in fridge 6. Various of Dairy production line, workers 7. Office of Avalon Dairy 8. Various of Rimmer working in office 9. SOUNDBITE (English) Russ Rimmer, CEO, Avalon Dairy (starting with shot 8): "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." 10. Various of dairy production line, workers at work 11. Various of dairy products in fridge. [Restrictions : No access Chinese mainland]

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