Government-Owned Surplus Dairy Products Held in Inventory

Gao ID: RCED-85-43 January 7, 1985

Pursuant to a congressional request, GAO updated information contained in an earlier report concerning the surplus of government-owned dairy products held in inventory.

GAO found that: (1) the Department of Agriculture's (USDA) dairy inventory decreased from about 3 billion pounds on September 23, 1983, to about 2.6 billion pounds on September 21, 1984; (2) disposition of dairy products through sales and food programs increased by about 8 percent during fiscal year 1984, while USDA purchases decreased by about 31 percent; (3) although the dairy inventory has decreased, USDA now has a larger quantity of older dairy products on hand; and (4) USDA claims that spoilage is minimal, but the condition of the products is uncertain because USDA has not reinspected many of the stored commodities since they were purchased.



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