USDA Announces Initial DEIP Allocations for 2009-2010
July 8, 2009
USDA Announces Initial DEIP Allocations for 2009-2010
Earlier this week, USDA announced it is extending the remainder of uncommitted bids from the 2008-2009 Dairy Export Incentive Program (DEIP) marketing year allocations to 2009-2010. This action will make available 48,176 metric tons of nonfat dry milk, 19235 metric tons of butterfat, and 2878 metric tons of cheese for the period July 1, 2009 through June 30, 2010.
In an earlier letter, NMPF had asked USDA to authorize DEIP bonuses for the new fiscal year that began on July 1st, which, if fully implemented, could help clear another 1.7 billion pounds of milk from the U.S. market. By utilizing the uncommitted allocations from 2008-2009, USDA has largely addressed NMPF's request. However, USDA will continue to work with other federal 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.
Both NMPF and the U.S. Dairy Export Council praised the action by Secretary of Agriculture Tom Vilsack. "We appreciate USDA's prompt announcement," said NMPF's President & CEO Jerry 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."
