The USDA and Agricultural Secretary Vilsack announced today that 200 million pounds of nonfat dry milk will be directed to the federal school lunch program and to food banks, helping low-income families and dairy farmers hit by high feed costs and low prices. Additional quantities of powdered milk may also be directed for use in foreign food aid programs. The movement of the powdered milk out of USDA storage will eliminate a source of surplus dairy products that could overhang commercial markets and delay a recovery of dairy farm prices, which are, on average, below $1 per gallon this month.
An estimated 61 million Americans are affected by USDA’s nutrition programs. A record 31.8 million Americans receive food stamps.
The National Milk Producers Federation (NMPF) thanked Agriculture Secretary Tom Vilsack today for the U.S. Department of Agriculture’s decision to increase the use of surplus nonfat dry milk powder in feeding programs. NMPF said the move represents a “win-win scenario” that will benefit both dairy farmers and needy families across the U.S. suffering from the global economic downturn.
“This is an important first step taken by Secretary Vilsack to use the resources of the USDA to help address the economic crisis facing dairy farmers, who right now are suffering from punishingly low milk prices. Using government surpluses in a way that doesn’t displace commercial dairy sales benefits everyone served by these programs,” said Jerry Kozak, President & CEO of NMPF.
Kozak also thanked the many members of Congress who also had weighed in with the USDA, urging the agency to move aggressively to confront sagging dairy prices. He said that USDA should also consider using other tools at its disposal, such as purchasing additional quantities of consumer-ready dairy products, such as process cheeses and infant formula, for using in feeding programs through the so-called Section 32 program. He also renewed the request NMPF made in January to resurrect the USDA’s dormant Dairy Export Incentive Program, to help boost overseas sales of U.S. dairy products in certain markets.