July 13, 1999

Two dairy organizations are claiming credit for a broader allocation of Dairy Export Incentive Program (DEIP) sales announced by USDA. The allocations are the first to allow DEIP sales of whole milk powder to Mexico and relax geographical constraints for skim milk powder exports.

The new allocations, for July 1, 1999, through June 30, 2000, provide great4er flexibility than ever Athanks to the efforts by the U.S. Dairy Export council and the National Milk Producers Federation,@ according to a statement by the two groups.

Mexico imports 20,000-30,000 tons of whole milk powder each year. Now U.S. exporters will be better equipped to counter the unfair trading practices of other dairy exporting nations and to compete more effectively in the Mexican marketplace, says Tom Suber, USDEC executive director.

As requested by USDEC, NMPF and the DEIP Coalition, USDA also agreed to globalize DEIP bonuses for 76,207 tons of skim milk powder, or nonfat dry milk, meaning the tonnage can be sold without limits to any eligible country. In the past, USDA would announce three separate regional allocations for skim milk powder. That sometimes created unbalances, according to USDEC and NMPF.