Dairy Export Incentives Announced

Ag secretary pledges support of U.S. dairy farmers.

Agriculture Secretary Tom Vilsack has announced initial allocations under USDA's Dairy Export Incentive Program for the year beginning July 1, 2009. The program helps U.S. dairy exporters meet prevailing world prices and encourages the development of international export markets in areas where U.S. dairy products are not competitive due to subsidized dairy products from other countries.

 

Under U.S. World Trade Organization commitments, USDA is allowed to provide bonuses for dairy products on a yearly basis of 68,201 metric tons of nonfat dry milk; 21,097 metric tons of butterfat; 3,030 metric tons of various cheeses, and 34 metric tons of other dairy products. The balances being made available through the new Invitations for Offers will count against the 2009-2010 U.S. WTO commitment levels.

 

In making the announcement Secretary Vilsack pointed an accusing finger at the European Union when he stated it appears the U.S.'s international markets continue to erode and the European Union has shown no indication that it will refrain from providing dairy export subsidies. The Secretary pledged that the U.S. will continue to use this program in a responsible manner in support of U.S. dairy farmers.

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