USDA Cheese Purchases May Fall Short
Politico reports there is no guarantee the USDA will spend all $20 million pledged last week to buy cheddar cheese surplus supplies. That’s because the first cheese purchase announced earlier this year fell short.
USDA had pledged $20 million in purchases in August to offset lower global dairy markets. However, USDA only spent $7 million on those purchases of surplus cheese. A USDA spokesperson explained that the window of opportunity to make purchases — August 23rd until September 30th — was shorter than normal because the department had to obligate the funds before the end of the fiscal year, and it happened to be a busy time for dairy processors.
So USDA evaluated the market’s status and announced additional purchases were necessary. Dairy producers are desperate for short-term relief as revenue has dropped 35% over the past two years amid a global oversupply.
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