Storage Cost Data on CCC-Owned Dairy Commodities
CED-81-157: Published: Sep 18, 1981. Publicly Released: Sep 28, 1981.
- Full Report:
In response to a congressional request, GAO obtained certain cost data on the federally owned dairy products from the Commodity Credit Corporation (CCC). CCC is a wholly owned Government corporation which acquires commodities through price support and other programs.
As of June 30, 1981, the CCC dairy inventories consisted of about 518 million pounds of butter, about 486 million pounds of cheese, and about 871 million pounds of nonfat dry milk. Nearly three-fourths of the dairy products in storage are less than 1 year old. For the first 9 months of fiscal year 1981, the Government's cost to store dairy products has risen sharply, totaling over $24 million. By comparison, storage costs for fiscal years 1977-80, when inventories were lower, averaged about $11 million annually. Relatively small quantities of these products are lost due to spoilage while in storage. However, some loss in quality or product deterioration can occur and, when it does, the products are sold at less than inventory value. Only nonfat dry milk is sold on a restricted basis.