The big cheese purchase to help dairy farmers and people in need

To assist dairy farmers in America, the United States Department of Agriculture will purchase about 11 million pounds of cheese for food banks. USDA announced on 23 August 2016 that the 11 million pound buyout (5 million kilograms) from private inventories will assist food banks and pantries across the country, while reducing the surplus of cheese – the highest surplus in 30 years. The purchase will cost about $20 million. Currently this excess cheese is locked in storage.

The surplus cheese will go to families in need through the USDA nutrition assistance programs, as well as helping dairy farmers. For dairy farmers, their revenues have dropped by 35% in the past two years.

Agriculture Secretary, Tom Vilsack, describes the big cheese buyout as a safety net to help farmers and to supply protein food to people in need.

The purchase resulted from a request from Congress, the National Farmers Union, the American Farm Bureau, and the National Milk Producers Federation. USDA will also extend the deadline for dairy farmers to enroll in the Margin Protection Program from 30 September to 16 December 2016 – this is a safety net program when the difference betweent the price of milk and feed costs (the margin) falls below the coverage level selected by the producer. Dairy producers are able to calculate levels of coverage based on price projections.

The ‘sluggish’ dairy market has been caused by factors such as low world market prices, increased milk supplies, and slower demand. Overseas buyers have stopped buying cheese made in America due to the high dollar, as well as higher levels of milk production in Europe.

http://www.fsa.usda.gov/news-room/news-releases/2016/nr_20160823_rel_0181

http://time.com/4463378/cheese-usda-buy-20-million-surplus/

MARTINA NICOLLS is an international aid and development consultant, and the author of:- The Shortness of Life: A Mongolian Lament (2015), Liberia’s Deadest Ends (2012), Bardot’s Comet (2011), Kashmir on a Knife-Edge (2010) and The Sudan Curse (2009).

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