Washington Dairy Federation reaction to USDA boost in dairy product price support

Washington Ag Today August 3, 2009 Agriculture Secretary Tom Vilsack announced Friday that the USDA was taking immediate action to help struggling dairy farmers by increasing dairy product price supports from August through October.

Jay Gordon, producer and Executive Director of the Washington State Dairy Federation, says the action is a big help.

Gordon: “This is really an unprecedented down turn we have had over the last six months now and we have a lot of farms going under water so this is very appreciated. It certainly not going to fix everything but it is a step in the right direction.”

The support price for nonfat dry milk is going from 80 cents a pound to 92 cents. The price paid for cheddar blocks is increasing from $1.13 to $1.31 and cheddar barrels are going from a dollar ten to a dollar 28-cents a pound.

Instead of all of the dairy products the government purchases going into storage where it can overhang the market, Gordon says the Dairy Federation has another step it would like the USDA to take when it comes to cheese.

Gordon: “Rather than have that cheese go into storage and sit there we have been talking to a lot of food banks that would really like to have that source of protein. The upturn in the food bank usage has been pretty dramatic in this recession as well. So far we haven‘t connected that dot and I didn‘t see that feature in this announcement so we are continuing to ask to see if that food can go into the feeding programs.”

Gordon says they are working with the state’s congressional delegation on that proposal.

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

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