USDA To Donate Products to Yemen

WASHINGTON - Jun 9/04 - SNS -- The USDA has agreed to donate 10,000 metric tons (MT) of non-fat dry milk (NFDM), 44,000 MT of wheat and 13,500 MT of flour to Yemen.

Proceeds from sales of the U.S. NFDM, valued at $20.7 million, will be used by the government of Yemen to help finance development activities that promote economic, agricultural and fisheries development, improve health and education, preserve and promote cultural heritage and create jobs.

Yemen produces very little milk, importing substantial quantities of milk products each year. Its dairy industry relies on imports of NFDM and whole fat dry milk to manufacture milk drinks, yogurt, ice cream and other dairy products. Because the NDFM availability varies from other countries and imports of finished dairy products are too expensive for many consumers to purchase, this donation will enable dairy food processing at reasonable prices.

The NFDM is being donated under the Section 416(b) program, which is administered by the Foreign Agricultural Service. Section 416(b) provides for donations of Commodity Credit Corporation-owned surplus commodities for assistance to developing and friendly countries.

Proceeds from sales of the U.S. wheat and wheat flour, valued at $15.5 million, will be used by the government of Yemen to finance irrigation projects, expand market and agribusiness enterprises, increase horticultural, livestock and fisheries production and improve roads, health and sanitation in rural areas.

Wheat and wheat products are dietary staples comprising nearly 70% of food intake, yet Yemen has produced less than 150,000 tons of wheat in each of the past three years, requiring wheat imports of 1.3 million tons in 2002. This donation will help Yemen respond to increased commercial milling and population growth.

The wheat and flour is being provided as a grant under the Food for Progress program funded by a transfer from Title I of P.L. 480, administered by the Foreign Agricultural Service.