Politico reports there is no guarantee the U.S. Department of Agriculture will spend all $20 million pledged last week to buy cheddar cheese surplus supplies.
That’s because the first cheese purchase announced earlier this year fell short. USDA had pledged $20 million in purchases in August to offset lower global dairy markets.
However, USDA only spent $7 million on those purchases of surplus cheese.
Politico says a USDA spokesperson explained that the window of opportunity to make purchases, August 23rd until September 30th was shorter than normal because the department had to obligate the funds before the end of the fiscal year, and it happened to be a busy time for dairy processors.
So USDA evaluated the market’s status and announced additional purchases were necessary.
Dairy producers are desperate for short-term relief as revenue has dropped 35 percent over the past two years amid a global oversupply.
