This Week's Other Stories:

EDITORIAL COMMENT: Time For Another Round Of Federal Order Reform

LEAD STORY: Over Half Of US Dairy Farms Enroll In New Margin Protection Program

OTHER NEWS: USDA Proposes Changes In Milk, Other Dairy Products In Child, Adult Care Food Program

GUEST COLUMNIST:  
End of Another Year
by Dan Strongin

COMPANY PROFILE:  
Cheesewich Offers Consumers Carb-Free Vending, Snacking, On-The-Go Options

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USDA Removes Regs For Dairy Export Incentive Program From CFR; 2009 FNS Memo On Nonfat Dry Milk Processing Cancelled

The US Department of Agriculture (USDA), in a final rule published in Wednesday’s Federal Register, removed the regulations for the Dairy Export Incentive Program (DEIP) from the Code of Federal Regulations (CFR), because the authority for this program was cancelled by the 2014 farm bill.

The Dairy Export Incentive Program was originally enacted through the 1985 farm bill. Under the DEIP, USDA’s Commodity Credit Corporation (CCC) made available bonuses (also known as subsidies) to enable US exporters to meet prevailing world prices for nonfat dry milk, cheese and butter in targeted destinations. The DEIP was subject to annual commodity-specific quantity and budgetary ceilings agreed to by the US in the World Trade Organization (WTO).

The last year of operation for the DEIP was 2010; since then, bonuses have not been needed to facilitate sales, USDA noted.

In other USDA dairy commodity developments, USDA’s Food and Nutrition Service (FNS) recently cancelled Policy Memorandum FD-085, Nonfat Dry Milk Processing (dated March 27, 2009).
Under that memorandum, the secretary of agriculture had authorized the CCC to make nonfat dry milk available for donation to FNS as a bulk commodity for reprocessing into finished products.

Commodity processing has a history of absorbing large quantities of nonfat dry milk while maximizing options and flexibility for processing the NDM, the memo pointed out. Approved products were limited to those end products that actually utilized NDM in the formulation of the end product, such as, but not limited to, fortified fat-free fluid milk and macaroni and cheese.

At the time the memo was issued, NDM markets were still depressed, and the CCC was still acquiring nonfat dry milk under the Dairy Product Price Support Program.

The CCC no longer has nonfat dry milk available for donation to FNS as a bulk commodity for reprocessing and all inventory of NDM has been depleted, noted Laura Castro, director, Food Distribution Division, FNS.

Therefore, the guidance provided by that 2009 memo is no longer valid and is being cancelled, she said.