10-2 news: State Departments of Agriculture draft “Meat the Need†proposal
“Each and every day, we watch as producers in our states go out of business. The current oversupply in the marketplace is causing dairy, pork, and poultry producers to accumulate debt as never before,” said NASDA President Ed Kee. “I am pleased we came together as a national organization to offer a solution to assist our producers. At the same time, our plan will provide vital aid to those Americans also greatly affected by the economic downturn.”
The NASDA plan would establish a tiered-purchase program for the dairy and pork industries, as well as a one-time purchase of turkey products. For dairy, the United States Department of Agriculture (USDA) would begin with a purchase 75 million pounds of cheese and additional dairy products, as determined by USDA. This would be done in three equal stages over a 120-day period, or until the target all-milk price of $16/cwt – the cost of production – is met. To deal with the excess product in the pork sector, a purchase by USDA of cold storage inventories of pork would be implemented over a 180-day period, or until a target price of $49/cwt was realized. Each tier would consist of 100 million pounds of pork products. USDA would also make a one-time purchase of 100 million pounds of turkey products.