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WASHINGTON, Aug. 15, 2003 – The U.S. Department of Agriculture today announced the initial allocation under the Dairy Export Incentive Program (DEIP) for the July-June 2003/04 year. 

The total WTO limits for this year’s DEIP are 68,201 metric tons of nonfat dry milk, 21,097 metric tons of butterfat and 3,030 metric tons of various cheeses.  Last year, in order to better manage the program, USDA announced these quantity limits in tranches and will do so again this year. 

Today’s initial DEIP allocation will make available 22,733 metric tons of nonfat dry milk, 7,032 tons of butterfat and 1,010 tons of various cheeses.  Due to current strong market prices for both butterfat and cheese, invitations for offers will be issued only for the tranche of nonfat dry milk.    

USDA will continue to monitor market conditions closely to determine when future allocations and awards are necessary.  The remaining tonnage will be announced in additional tranches prior to June 30, 2004. 

Export sales of these products will be facilitated through the payment of bonuses by USDA’s Commodity Credit Corporation.  Sales of nonfat dry milk, butterfat and eligible cheeses will be made through normal commercial channels at competitive world prices. 

Individual product/country allocations will be specified in the Invitations for Offers.  Country/region quantities may be limited by the applicable invitation. 

Information about the DEIP, including Invitations for Offers when issued, is available on the Internet at  or by calling the Operations Division, Export Credits, FAS, at (202) 720-3224 or (202) 720-6211. 

FAS news releases are available on the Internet at  For additional information about Web access, contact FAS Public Affairs Division at (202) 720-7115. 

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