USDA to Purchase Surplus Cheese

Agriculture Secretary Tom Vilsack announced Tuesday the U.S. Department of Agriculture is offering to purchase $20 million of cheddar cheese to reduce a private cheese surplus that has reached record levels. The announcement followed a roundtable discussion with dairy producers in Wisconsin. USDA will use the surplus cheese to assist food banks and other food assistance recipients. USDA predicts dairy prices will increase throughout the rest of this year, but low world market prices, increased milk supplies and inventories and slower demand have contributed to a sluggish market. The slow market has caused dairy revenues to drop 35 percent over the past two years. Vilsack says a solicitation will be issued shortly, and cheese deliveries to food banks and other food assistance recipients are expected to start in March of 2017.