Developments in dairy including USDA export program

Washington Ag Today May 25, 2009 The USDA will use the Dairy Export Incentive Program to help financially strapped U.S. dairy producers. Agriculture Secretary Tom Vilsack made the announcement Friday allocating about 92-thousand metric tons of various dairy products for the program. The Dairy Export Incentive Program, which hasn’t been used in years, provides incentive payments to U.S. dairy exporters to counter foreign dairy subsidies and is consistent with current WTO rules. The E.U. resumed subsidizing dairy exports earlier this year.

Cooperatives Working Together field auditors have begun visiting the 388 farms that have been tentatively accepted in the program’s seventh herd retirement, which will remove nearly 103-thousand dairy cows. The majority of the cows will be from the West and Southwest. Eighty-eight bids were accepted in the eight-state Western Region, which includes Washington.

The USDA’s first forecast of 2010 milk prices is more positive for dairy producers.

Bange: “We do look to considerably higher prices in 2010. We are looking for an All Milk Price of $15.20. That is up nearly 26% from the $12.10 of 2009.”

USDA Outlook Board Chairman Gerry Bange.

Finally, some major dairy industry groups are rejecting a suggested federal excise tax on sugar-sweetened beverages that would include flavored milk drinks, such as chocolate and strawberry. The excise tax was on a list of revenue options released by Senators Max Baucus and Charles Grassley.

I’m Bob Hoff and that’s Washington Ag Today on the Northwest Ag Information Network.