The Defense Logistics Agency is procuring a six-month advanced supply of meat, poultry and fish to provide drought relief for the U.S. agricultural industry. The purchase is estimated at $100 million.
The producers won’t be the only ones to benefit, as there will be additional logistics costs as well. The agency’s Troop Support Subsistence supply chain asked its top three vendors to buy, store and distribute beef, pork, lamb, chicken and catfish products. Purchases will be based on forecast demand, and the agency will identify the specific meat items to buy. Prime vendors will store the additional meat, according to the DLA.
Officials with Troop Support Subsistence are negotiating with vendors on storage and distribution fees, estimated to be between $2.4 million and $3.3 million.
The DLA is a combat support agency based in Fort Belvoir, Va. The agency employs some 27,000 people worldwide.