August 15, 2018

US government to purchase US$50 million of surplus milk from dairy farmers
 

For the first time ever, the US Department of Agriculture (USDA) is purchasing 11 - 13 gallons of liquid milk from its dairy farmers for US$50 million.

Under a USDA programme that allows the government to buy surplus food or agricultural products, the purchasing scheme will redirect the excess milk to local food banks or school-nutrition programmes and is not related to the US$12 billion trade aid announced by US President Donald Trump early this month.

Many farmers have been directly affected by trade issues related to NAFTA and declining demand for milk from cows while hundreds of dairy farms have closed, citing economic pressure and government regulations, over the last 15 - 20 years.

"This purchase addresses one of our country's significant challenges - hunger - and at the same time, will have a positive impact on the dairy industry at a time of significant market uncertainty," Michael Dykes, the International Dairy Foods Association president and CEO said.

He added, "The nation's milk processors welcome the opportunity."
 

Source: ABC News