USDA closed the books June 30 on its FY 2005 Dairy Export Incentive Program (DEIP) with almost no activity for the year. During the entire year, USDA never requested bids or awarded bonuses, so no dairy products were exported under the once-popular program. The reason is not much of a mystery. Demand for U.S. dairy products was strong throughout the year, keeping prices high, making government compensation for exporters unnecessary. International milk production was down, and the currency battering suffered by the dollar worked to U.S. producers' advantage, pumping up demand for U.S. non-fat dry milk. U.S. NFDM exports are up 155% since July 1, 2004, when the DEIP fiscal year began.