Dairy Industry: Potential for and Barriers to Market Development
RCED-94-19
Published: Dec 21, 1993. Publicly Released: Jan 05, 1994.
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Highlights
Pursuant to a congressional request, GAO reviewed the development of domestic and international markets for U.S. dairy products, focusing on: (1) how the U.S. dairy industry's export activities compare with those of other major milk-producing countries; (2) opportunities to develop and expand dairy markets; and (3) obstacles to expanding dairy markets.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress, jointly with the executive branch and the dairy industry, should consider initiating efforts to develop a long-range dairy policy that better recognizes the importance of dairy exports to the continued viability of the industry. Steps could include conducting hearings, gathering information on alternatives to overcome impediments to export development, and analyzing the implications of those alternatives on the industry's current structure. | The Federal Agricultural Improvement and Reform Act of 1996 emphasized exports of dairy products by making more Dairy Export Incentive Program (DEIP) funds available. The act also broadens the efforts of the promotion programs to include unlimited market development, and grants authority for the industry to form export trading companies. | |
| Congress should consider directing the Secretary of Agriculture to facilitate discussions with the dairy industry to help increase its attention to exploring global markets. | The Federal Agricultural Improvement and Reform Act of 1996 emphasized exports of dairy products by making more DEIP funds available. The act also broadens the promotion programs' efforts to include unlimited market development, and grants authority for the industry to form export trading companies. In addition, USDA has provided the dairy industry $1.6 million to explore and develop export markets. |
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Topics
Agricultural policiesAgricultural productionCommodity marketingDairy industryDairy productsExportingFarm income stabilization programsFood supplyInternational tradePrice supports