Cooperatives Working Together (CWT) accepted three bids from Foremost Farms of Baraboo, WI, and two bids Dairy Farmers of America of Kansas City, MO, for export assistance for a total of 1,571 metric tons (3.5 million pounds) of Cheddar cheese to the Middle East, Europe, and Australia. The product will be delivered between April and July 2010.
Since CWT reactivated the Export Assistance program on March 18, 2010, it has assisted members in making export sales of cheddar cheese totaling 2,530 metric tons (5.6 million pounds) to five countries on three continents, including this week's accepted bids.
The Export Assistance program was reactivated when economic analysis indicated that sizeable cheddar cheese inventories overhanging the market are hampering a recovery in producer milk prices. Assisting CWT members in exporting cheddar cheese will provide the most immediate way to positively impact producer milk prices.
CWT will pay export bonuses to the bidders only when delivery of the product is verified by the submission of the required documentation.
Cooperatives Working Together (CWT) is being funded by dairy cooperatives and individual dairy farmers, who are contributing 10 cents per hundredweight assessment on their milk production through December 2010. The money raised by CWT's investment is being apportioned between two supply management programs that strengthen and stabilize the national all milk price. For more on CWT's activities, visit www.cwt.coop