U.S. Signs for Several Donations

August 3, 2000

The United States has signed a fiscal year 2000 Section 416(b) agreement with the government of Bulgaria for the donation of U.S. soybean meal and rice. In addition, a fiscal year 2000 Food for Progress agreement was signed with the Adventist Development and Relief Agency International (ADRA), a private voluntary organization for the distribution of U.S. agricultural commodities in Azerbaijan.

Other agreements in recent days include a fiscal year 2000 Section 416(b) agreement with International Partnership for Human Development, a private voluntary organization for the donation of U.S. agricultural commodities and a fiscal year 2000 Section 416(b) agreement with the government of the Kyrgyz Republic for the donation of U.S. agricultural commodities.

According to Richard Fritz, general sales manager of USDA’s Foreign Agricultural Service, the first agreement will provide up to 5,000 metric tons of rice and 10,000 metric tons of soybean meal, as well as related ocean transportation costs. The soybean meal and rice will be sold in Bulgaria, and the proceeds will be used for approved development programs.

Under the authority of Section 416(b) program, FAS donates commodities to friendly, developing countries seeking to implement democratic and agricultural market reform. The donated soybean meal and rice will be provided from Commodity Credit Corporation stocks acquired through surplus purchases. The supply period for this donation is fiscal year 2000.

According to Mary T. Chambliss, acting general sales manager of USDA’s Foreign Agricultural Service, the Azerbaijan agreement will provide 5,900 metric tons of wheat flour, rice, vegetable oil, corn oil, and peas. ADRA will sell the commodities in Azerbaijan and use the proceeds to support agricultural development and food-for-work programs for internally displaced persons and refugees in the Agjebedi, Naxcivan, and surrounding regions.

The donation will be made under USDA’s Food for Progress program, which FAS administers. The supply period for this donation is fiscal year 2000.

For the agreement with International Partnership for Human Development, the United States will provide up to 10,000 metric tons of U.S. commodities consisting primarily of wheat flour but also including rice, vegetable oil, and corn meal, as well as related ocean transportation costs.

The Kyrgyz agreement involves up to 60,000 metric tons of hard red winter wheat, as well as related ocean transportation costs. The wheat will be milled into flour in state-controlled facilities. Approximately 30% of the flour will be distributed as direct assistance to persons living in distant and high mountain regions of the country. The proceeds from the remaining 70% of the wheat will be distributed as social payments to citizens entitled to such allowances under Kyrgyz law.