Agriculture Secretary Tom Vilsack announced this week USDA is offering to purchase an additional $20 million of cheddar cheese to reduce a private cheese surplus that has reached record levels. Minnesota Milk Producers Association Executive Director Bob Lefebvre says the purchase comes at a good time when dairy producers are struggling with low prices. He says it’s also positive the surplus cheese will be helping food banks and food assistance recipients.
He says world market prices are low with surplus milk supplies and inventories which has led to the sluggish U.S. and world market.
Lefebvre says another problem is that fluid milk consumption has dropped.
The low prices have caused dairy revenues to drop 35-percent over the past two years. The cheese deliveries to food banks and other food assistance recipients are expected to begin in March of 2017.
