Contradictions Abound

At the end of May 2009 butter stocks were down 7% when compared with the same time in 2008. Butter stocks in May 2008 were down slightly from May 2007.

So, that the U.S. would be subsidizing butter exports might seem surprising:

USDA ANNOUNCES BONUSES FOR EXPORTS OF BUTTERFAT UNDER DAIRY EXPORT INCENTIVE PROGRAM

WASHINGTON, June 8, 2009 – The U.S. Department of Agriculture today announced Commodity Credit Corporation (CCC) bonuses per metric ton on eligible sales of butterfat under the Dairy Export Incentive Program (DEIP) Invitation GSM-511A-59, issued May 22, 2009.

The announced bonuses are as follows:

Butter $450.00 per metric ton

Anhydrous Milkfat, Butteroil, Ghee $650.00 per metric ton

Then the ante is raised:

USDA ANNOUNCES NEW BONUSES FOR EXPORTS OF BUTTERFAT UNDER DAIRY EXPORT INCENTIVE PROGRAM

WASHINGTON, June 22, 2009 – The U.S. Department of Agriculture today announced Commodity Credit Corporation (CCC) bonuses per metric ton on eligible sales of butterfat under the Dairy Export Incentive Program (DEIP) Invitation GSM-511A-59, issued May 22, 2009. This announcement supersedes Press Release number PR 0083-09, issued June 8, 2009.

The announced bonuses are as follows:
Butter $850.00 per metric ton
Anhydrous Milkfat, Butteroil, Ghee $1050.00 per metric ton

Then consider the following graph:



(click on graph to enlarge)



Everywhere there is money to made in dairy except where the milk is produced.