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Dairy Organizations Praise Prompt Action by USDA on Dairy Export Incentive Program

August 5, 2009

NMPF and the U.S. Dairy Export Council (USDEC) applauded U.S. Department of Agriculture (USDA) Secretary Tom Vilsack for his announcement on July 8 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 will count towards the new marketing year that began July 1, 2009 and that ends June 30, 2010.

"We appreciate USDA's prompt announcement," said Kozak. "Unlike the short period of time given to exporters under last year's DEIP announcement, this swift action by USDA will allow us to properly compete with other subsidized exporters. However, it is extremely important that USDA issue DEIP invitations immediately for all allowable categories of dairy products in a manner that maximizes exports so producers receive the full benefit."

USDA will continue to work with other agencies to make the rest of the full DEIP allocations (20,025 metric tons of nonfat dry milk, 1,862 metric tons of butterfat and 152 metric tons of cheese) available at a later date.

"The FY 2008-09 and FY 2009-10 allocations of DEIP could remove more than 1.5 billion pounds of milk from the U.S. market," said Kozak. "Coupled with actions being taken under our own Cooperatives Working Together program, this will help address, in a meaningful way, the imbalance currently present in our market."