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USDA announced today:
USDA ACCEPTS DEIP BID FOR CHEDDAR CHEESE TO ASIA AND EURASIA
WASHINGTON, Sept. 29, 2009 -- The U.S. Department of Agriculture's Commodity Credit Corporation today accepted a bid from an exporter under the Dairy Export Incentive Program for cheddar cheese to Asia and Eurasia.
The award totaled 40 metric tons of cheddar cheese.
Delivery period: Oct. 1 - Nov. 30, 2009
Bonus: $275.00 per metric ton
Remaining global DEIP balance: 2,103 metric tons
CCCs bonus was awarded to Interfood, Inc.
For further information, call (202) 720-3224.
That amounts to $0.125 per pound bonus. Block Cheddar today was $1.4125 per pound. So, if you take the DEIP bonus off that would put Cheddar at $1.288 per pound.
On September 17, 2009 Dairy market News reported the high side of Oceania Cheddar at $1.49 per pound. With a $0.202 per pound advantage there is a hefty profit to be made.
One big question remains. Will/has the DEIP program helped the farmer’s bottom line? No guessing!