USDA announces DEIP allocations

May 21, 2009 07:00 PM
With just 40 days remaining in the July 2008-June 2009 period, USDA released its Dairy Export Incentive Program (DEIP) allocations for the period today.
USDA will allocate 68,201 metric tons of nonfat dry milk, 21,097 tons of butterfat, 3,030 tons of cheese and 34 tons of other dairy products through DEIP. Additional individual product and country allocations will be made available through USDA's Invitation for Offers program.

Full useage of the program will remove roughly 1.5 billion lb. of milk from the market, estimates National MIlk Producer Federation.
"These allocations illustrate our continued support for the U.S. dairy industry, which has seen its international market shares erode, in part, due to the reintroduction of direct export subsidies by the European Union earlier this year,” says USDA Secretary Tom Vilsack.
Vilsack says that the Obama Administration remains committed to its pledge to refrain from protectionist trade measures. "Our measured response [today] is fully consistent with our WTO commitments and we will make every attempt to minimize the impact on non-subsidizing foreign suppliers,” he says.

NMPF and U.S. Dairy Export Council officials are urging USDA to quickly open the bidding process so that the full amount of the current DEIP allocaiton can be used by the end of June.

If fully utilized, and with CWT culling of 100,000 cows over the next several months, U.S. milk supplies could be reduced by 3.5 billion lb. That represents about 2% of annual production.

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