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DEIP Update, May 27, 2003: USDA Invites Bids on More Butter On May 19, the U.S. Department of Agriculture (USDA) announced new allocations in the Dairy Export Incentive Program (DEIP) for 5,000 metric tons (MT) of butterfat, officially inviting bids for the allocated butter on May 21. To date in the program's fiscal year — which ends June 30 — USDA has allocated a total of 13,186 MT of butterfat under DEIP, officially inviting offers on 10,000 MT. The DEIP butterfat maximum under U.S. agreements within the World Trade Organization is 21,097 MT for this fiscal year. In its announcement, USDA said that it "will continue to monitor market conditions closely to determine if future invitations are necessary." IDFA has expressed concerns with the potential of driving domestic prices too high by exporting butter under DEIP. (Click here for more details.)DEIP previously reached its annual maximum totals for nonfat dry milk and cheese. Under this new announcement, dairy exporters can submit requests to receive a Commodity Credit Corporation bonus to facilitate the sale of domestic butterfat products to countries in three regions of the world as follows: Caribbean, Central and South America, including Aruba, Bahamas, Bermuda, Cayman Islands, Mexico, Netherlands Antilles, and Nicaragua. Africa and Middle East, including Algeria, Canary Islands, Cyprus, Israel, Kuwait, Qatar, Saudi Arabia, United Arab Emirates, and Zaire. Asia and Former Soviet Union, including China, Hong Kong, South Korea, Malaysia, Singapore, Taiwan, Vietnam, Azerbaijan, Belarus, Tajikistan, Turkmenistan and Ukraine. Earlier this year, on February 28, USDA invited offers on the subsidization of the first 5,000 metric tons of butterfat in the current DEIP year. Within one week of that announcement, USDA had awarded DEIP bonuses for the entire 5,000 metric tons. Posted May 27, 2003
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