The USDA said it plans to buy about 11 million pounds of cheese for food banks and pantries across the nation, reducing a cheese surplus that is at its highest level in 30 years. The purchase, valued at $20 million, came after a concerted campaign by the dairy industry, which is facing a 35-percent drop in revenues. But the government help was far less than dairy producers had hoped for.
“We understand that the nation’s dairy producers are experiencing challenges due to market conditions and that food banks continue to see strong demand for assistance,” said Agriculture Secretary Tom Vilsack in a statement. “This commodity purchase is part of a robust, comprehensive safety net that will help reduce a cheese surplus that is at a 30-year high while, at the same time, moving a high-protein food to the tables of those most in need.”
The USDA said it received requests from Congress, the National Farmers Union, the American Farm Bureau and the National Milk Producers Federation to make an immediate dairy purchase. The milk producers in August had asked the USDA to buy 90 million pounds of cheese at a cost of $100-150 million. The department is projecting a 2016 average milk price of $15.70 per hundredweight, down 35 percent from 2014 and the second lowest level in the past decade.
On Aug. 4, USDA announced $11.2 million in financial assistance to U.S. dairy producers enrolled in MPP-Dairy, the largest payment since the program began in 2014.