In the 2021 Consolidated Appropriations Act, Congress directed USDA to develop a $400 million Dairy Donation Program (DDP) to facilitate dairy product donations and reduce food waste. Under this program, eligible dairy organizations form partnerships with non-profit feeding organizations that distribute food to individuals and families in need. Those partnerships may apply for and receive reimbursements to cover some expenses related to eligible dairy product donations.
Eligible Dairy Organizations (EDO)
Dairy farmers, cooperatives, and processors purchasing fresh milk or bulk dairy products to process into retailpackaged dairy products may qualify for this program. In addition, the dairy farmer, cooperative or processor must file a Receipts and Utilization report with a Federal milk marketing order (FMMO). For those reporting to a local FMMO office as part of normal business operations, the requirement is already met. For those that do not, please contact us at firstname.lastname@example.org so that we can help with filing the Receipts and Utilization report.
EDOs may form one or more partnerships with nonprofit feeding organizations, called eligible distributors, that distribute food to individuals and families. EDOs can partner with an umbrella organization that includes multiple distribution locations or with an individual (or independent) organization with a single distribution location.
The DDP reimburses the EDO for
Cost of milk to make the donated product - applicable classified price of the fresh fluid milk (or bulk dairy commodity product milk equivalent) used in the donated dairy product;
Manufacturing costs—a standard cost for manufacturing the donated dairy product;
Transportation costs—portion of the costs to transport donated product between the plant and distribution location.
What About the Milk Donation Reimbursement Program?
If you participated in the Milk Donation Reimbursement Program (MDRP), you do not need to apply for the DDP. Current participants in the MDRP are automatically enrolled in the DDP. EDOs will receive the same reimbursement for cost of milk, manufacturing, and transportation as DDP participants.
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Updated March 18, 2022
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