USDA announces action to help dairy producers

Washington Ag March 27, 2009 Secretary of Agriculture Tom Vilsack announced Thursday that approximately 200 million pounds of nonfat dry milk will be transferred from the Commodity Credit Corporation to USDA's Food and Nutrition Service for use in domestic feeding programs. The goal is to help support both low-income families struggling to put nutritious food on their tables and dairy farmers who have been challenged by high feed costs and low dairy prices. In addition to the 200 million pounds for domestic nutrition programs the USDA will also use about 2.5 million pounds of non-fat dry milk for international food programs. Jerry Kozak, president of the National Milk Producers Federation was with Secretary Vilsack when the announcement was made and he was asked what market impact the USDA's action might have. Kozak: "By removing these stocks that would be hanging over the market we will not be slowing down the recovery of dairy prices. So we believe that in the long term, by what Secretary Vilsack has done, that we are clearly going to have some price enhancement. Now granted give the conditions it is going take a little period of time but in the long term we believe it can be significant." According to Ag Statistics Service figures, the wholesale milk price for Washington dairy farmers in February of 2008 was $18.20 a hundredweight. Preliminary numbers for February 2009 are just $10.70. I'm Bob Hoff and that's Washington Ag Today on the Northwest Ag Information Network.