“WASHINGTON, July 6, 2009 – Agriculture Secretary Tom Vilsack today announced initial allocations under USDA’s Dairy Export Incentive Program (DEIP) for the period July 1, 2009, through June 30, 2010. The program helps U.S. dairy exporters meet prevailing world prices and encourages the development of international export markets in areas where U.S. dairy products are not competitive due to subsidized dairy products from other countries.”
The release continues:
“Of the 2008-2009 DEIP allocations announced in May 2009, 48,176 metric tons of nonfat dry milk; 19,235 metric tons of butterfat; and 2,878 metric tons of cheeses remain uncommitted. These balances will be made available through the issuance of new Invitations for Offers.”
The first week of May 2009 ended with CME block Cheddar price at an average of $1.1570 per pound. The DEIP program took hold and the first week of June 2009 ended with block at $1.1495 per pound average. The first week in July 2009 ended with an average of $1.1150 per pound.
If this is a trend, the Secretary's announcement is not cheering.
By the way. When MILC started, the program was based on $16.94 per hundredweight. Inflation should have bumped up the base to $20.12