USDA TO PROVIDE 24 MILLION POUNDS OF NONFAT DRY MILK 


                                              Release No. 0329.97

                                      Johna Pierce (202) 720-4623
                                       Dann Stuart (202) 690-0742
                                         dstuart@wdc.fsa.usda.gov

USDA TO PROVIDE 24 MILLION POUNDS OF NONFAT DRY MILK AS BONUS TO FOOD
PROGRAMS

     MOSCOW, RUSSIA, Sept. 22, 1997--Agriculture Secretary Dan Glickman, in
Moscow today for the Gore-Chernomyrdin Commission meeting, announced that
the U.S. Department of Agriculture's Commodity Credit Corporation will
donate 24 million pounds of surplus nonfat dry milk as a bonus to USDA's
Food and Consumer Service for use in domestic food assistance programs.  FCS
is encouraging states to use the funds saved by the dry milk donation to
purchase additional cheese and other commodities for their school food
programs.

     "This is an excellent opportunity for USDA to put our market policies
to use for the benefit of needy people, school children, and dairy farmers,"
Glickman said.  "Coming on the heels of our National Summit on Food Recovery
and Gleaning, it highlights the Department's role in feeding the hungry and
putting our nation's agricultural abundance to work for everyone."

     Glickman said the surplus dry milk is available because USDA has
sufficient supplies on hand to meet the needs of both domestic and
international food programs.  USDA routinely purchases dairy and other
commodities as part of its price support and surplus removal programs. The
commodities are then stored for use in feeding programs.  When enough is on
hand to meet program needs, any additional commodities are donated as a
bonus to states.

	Under the dairy price support program, USDA buys cheese, butter, and
nonfat dry milk when the market price is low enough to trigger USDA's
standing offers to purchase.  

     "This donation demonstrates the natural role USDA plays in the
nation's food supply chain," said August Schumacher, under secretary for
farm and foreign agricultural services.  "We're feeding good, wholesome food
to hungry people and school children, helping to support the dairy industry,
and making wise use of the taxpayers' dollars to accomplish both these
goals."

	"We have enough in storage to meet our projected program needs, so
donating excess commodities at this time makes good sense," Schumacher said.

	Shirley Watkins, under secretary for food, nutrition, and consumer services,
explained that states routinely receive food from USDA for the domestic food
assistance programs they administer, including the National School Lunch
Program, the Emergency Food Assistance Program, and others.  She said some
food comes under entitlement programs and some as a bonus, but that a large
bonus donation such as the nonfat dry milk can be a windfall that can save
states significant amounts of money.

     "We are delighted to be able to offer this bonus product to the
states," Watkins said.  "This will allow states to purchase cheese -- lowfat
or other -- while at the same time helping the food programs go further and
support our agricultural economy."

     Watkins said this is the first time USDA has used anticipated savings
from a donation as a means to encourage states to purchase other products.

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