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USDA to Buy Surplus Cheese, Releases New TPP Report
USAgNet - 10/12/2016

Following a roundtable discussion with dairy producers in Wisconsin on Tuesday, Agriculture Secretary Tom Vilsack announced that the USDA is offering to purchase $20 million of cheddar cheese to reduce a private cheese surplus that has reached record levels, while assisting food banks and other food assistance recipients.

While USDA projects dairy prices to increase throughout the rest of the year, many factors including low world market prices, increased milk supplies and inventories, and slower demand have contributed to a sluggish marketplace for dairy producers and caused dairy revenues to drop 35 percent over the past two years. Section 32 of the Agriculture Act of 1935 authorizes USDA to purchase surplus food to benefit food banks and families in need through its nutrition assistance programs.

"America's farming families are being called on to demonstrate their world-famous resourcefulness and resilience in the face of this current market downturn, and USDA is making use of every tool that we have to help them," said Vilsack.

A solicitation will be issued shortly, and cheese deliveries to food banks and other food assistance recipients are expected to occur beginning in March 2017.

Also at the roundtable, Vilsack shared details of a new report by the USDA's Office of the Chief Economist, which shows continued growth of the U.S. dairy sector is largely contingent on trade and that the Trans-Pacific Partnership could create an additional $150 to $300 million in annual U.S. dairy exports. Free trade agreements have contributed to the growth in U.S. dairy exports and helped to address tariff and nontariff barriers that disadvantage U.S. products in overseas markets. U.S. dairy exports to free trade agreement partners grew from $690 million in the year prior to each agreement's entry into force to $2.8 billion in 2015, driven by lower trade barriers and increased U.S. competitiveness.

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