Aggressive Use of the Dairy Export Incentive Program

                                              Release No. 0255.97

Statement

                               by
               Agriculture Secretary Dan Glickman
    on Aggressive Use of the Dairy Export Incentive Program
                         July 31, 1997


     "The Dairy Export Incentive Program (DEIP) is an essential tool to
ensure that American dairy producers have equal access to world markets.  The
Department continues to aggressively use this tool to target overseas markets
with the best potential for U.S. dairy products.  In the first month of the
current DEIP year (July 1997-June 1998), we awarded bonuses for the sale of
over 18,000 metric tons of milk powder, butterfat, and cheese.  This total
already has surpassed the total for the first six months of the previous year.

     "Based on our current assessment of domestic and international market
conditions, we anticipate exporting the full quantity of 137,446 metric tons
of U.S. dairy products under DEIP this year as permitted by the Uruguay
Round/GATT agreements.  In fact, DEIP sales of milk powder have already
reached 15 percent of our GATT limits.  At the current pace, we project DEIP
export volume for milk powder to reach our GATT limits by spring 1998 and
butterfat and cheese sales by the end of the program year. 

     "The U.S. dairy industry is known for its high-quality products and USDA
continues to encourage America's dairy producers to aggressively pursue export
opportunities in the world's $9-billion-plus dairy market.  International
markets are critical to U.S. producers, particularly in light of slower growth
in domestic demand over the past year and a half, unusually low farm-level
milk prices and the continuing decline in the number of dairy operations in
the U.S.

     "In addition to USDA's DEIP efforts, the department has taken other
steps to help the dairy industry, such as purchasing more than 78 million
pounds of cheese for use in domestic food and nutrition assistance programs."

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Editors' Note:  Secretary Glickman and other top USDA officials today met with
representatives of the U.S. dairy industry to discuss USDA's role in assisting
the industry during these tough times.

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