Dairy Export Incentive Program
What is DEIP?
The best short description of the Dairy Export Incentive Program (DEIP) is the following excerpt from USDA’s FAS website:
"The Dairy Export Incentive Program (DEIP) helps exporters of U.S. dairy products meet prevailing world prices for targeted dairy products and destinations. Under the program, the U.S. Department of Agriculture pays cash to exporters as bonuses, allowing them to sell certain U.S. dairy products at prices lower than the exporter's costs of acquiring them. The major objective of the program is to develop export markets for dairy products where U.S. products are not competitive because of the presence of subsidized products from other countries."
For more information on DEIP from the USDA/FAS, visit their website.
Dairy Organizations Praise Prompt Action By USDA On Dairy Export Incentive Program
On July 8, 2009, NMPF and the U.S. Dairy Export Council (USDEC) applauded USDA Secretary Tom Vilsack for his announcement regarding initial allocations under the Dairy Export Incentive Program (DEIP) for the new marketing year July 2009 - June 2010.
“This important action by Secretary Vilsack demonstrates his commitment to continue to offer support for dairy producers at a time when dairy prices are at their lowest in years,” said Jerry Kozak, President and CEO of NMPF.
In order to expedite DEIP allocations, USDA extended the remainder of the uncommitted bids from 2008-2009, making available 48,176 metric tons of nonfat dry milk, 19,235 metric tons of butterfat and 2,878 metric tons of cheese for the new 2009-2010 DEIP marketing year. These quantities would count towards the new marketing year that began July 1, 2009 and endsed June 30, 2010.
NMPF and USDEC Thank USDA for Opening DEIP, Urge Swift Implementation: May 26, 2009
After expressing appreciation to the U.S. Department of Agriculture (USDA) for opening the full allocations under the Dairy Export Incentive Program (DEIP) for the July 2008 - June 2009 year, NMPF and the U.S. Dairy Export Council (USDEC) sent a May 26, 2009 letter to USDA Under Secretary James Miller urging that the program be implemented swiftly and with the intent of having the most extensive impact possible. The two organizations asked that USDA open the bidding process immediately with the broadest coverage in crafting the list of eligible countries.
NMPF and USDEC Laud USDA Decision To Re-Open the Dairy Export Incentive Program
NMPF and the U.S. Dairy Export Council (USDEC) praised the USDA for the May 22, 2009 announcement opening the full allocations under the Dairy Export Incentive Program for the July 2008 - June 2009 year. On behalf of America’s dairy industry, NMPF and USDEC expressed deep appreciation to Secretary Vilsack for his dedication to supporting dairy producers at this time of dire economic difficulties.
Dairy Industry Asks USTR, Treasury, OMB, State, and USDA to Fully Utilize DEIP: May 8, 2009
On May 8, 2009, the U.S. dairy industry strongly urged the U.S. Trade Representative, the Department of Treasury, the Office of Management and Budget (OMB), and the State Department to move swiftly to act in concert with USDA to exercise its authority to use the Dairy Export Incentive Program (DEIP) to help address the deteriorating situation facing dairy producers nation-wide. According to USDA, February 2009 dairy exports were 57% below those for the same month last year. U.S. dairy producers faced their fifth month of farm milk prices that were roughly half of what they were the previous year, yet input costs remained historically high. The 2008 Farm Bill directed USDA to use DEIP to the maximum extent permitted by the WTO. The time had never been more right to use the DEIP.
NMPF prepared talking points regarding this issue.
NMPF Urges Obama to Address Dairy Crisis: March 19, 2009
NMPF sent a March 19, 2009 letter to the White House urging President Obama to take immediate action to help address the economic crisis facing dairy farmers. Among other things, the letter urged the Obama Administration to boost the use of dairy products in federal feeding programs, maximize the value of the dairy product price support program, and activate the Dairy Export Incentive Program.