Cooperatives Working Together (CWT) announced today that it accepted five export assistance bids last week for the sale of butter, anhydrous milkfat and whole milk powder.
Two of the bids accepted were from Dairy Farmers of America of Kansas City, Mo., for the export of anhydrous milkfat to Mexico in the following amounts: 369 metric tons (813,506 lb.), and an additional 36 metric tons (79,366 lb.).
Two bids were accepted from California Dairies Inc., of Artesia, Calif., for two separate exports of butter to Guatemala, in the amounts of 18.85 metric tons (41,557 lb.) each.
Finally, one bid was accepted from Humboldt Creamery of Fortuna, Calif., for a whole milk powder export of 20 metric tons (44,092 lb.) to Nicaragua.
With these accepted bids, CWT's total 2008 export obligations are: butter, 18,843 metric tons (41.5 million lb.); cheese, 1,434 metric tons (3.2 million lb.); whole milk powder, 1,248 metric tons (2.7 million lb.); and anhydrous milkfat, 6,204 metric tons (13.7 million lb.). The milk equivalent total of these products is 1.31 billion pounds.
Also today, CWT formally revised its operating procedures for its Export Assistance program reflecting the addition of skim milk powder (SMP), standardized to 34% protein content, and butter blends containing at least 75% butterfat. The CWT Committee had approved the addition of SMP and butter blends to the list of products eligible for export assistance when it met on Oct. 27, 2008.
Jerry Kozak, CEO and president of the National Milk Producers Federation, says CWT is not intended to replace the federal Dairy Product Price Support Program (DPPSP), which supports the purchase price of nonfat dry milk powder (NFDM) at 80 cents per pound. Rather, it is intended to stimulate, promote and assist the export of skim milk powder standardized to 34% protein, which is not eligible for sale to the USDA's Commodity Credit Corporation under the DPPSP.