USDA Surplus Cheese Purchase is Nothing New

Three weeks ago we told you that Agriculture Secretary Tom Vilsack had announced that USDA was offering to purchase $20 million of cheddar cheese to reduce a private cheese surplus that has reached record levels, to assist the stalled marketplace for dairy producers whose revenues have dropped while assisting food banks and other food assistance recipients.

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While USDA projects dairy prices will increase throughout the rest of the year, many factors including low world market prices, increased milk supplies and inventories, and slower demand have contributed to a sluggish marketplace for dairy producers and caused dairy revenues to drop 35 percent over the past two years. Vilsack says this is not the first time USDA has purchased dairy products like this

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Section 32 of the Agriculture Act of 1935 authorizes USDA to purchase surplus food to benefit food banks and families in need through its nutrition assistance programs.

The deliveries of this cheese to food banks and other food assistance recipients is expected to occur in March 2017.