Source: National Milk Producers Federation news release
Cooperatives Working Together (CWT) today said it accepted one bid from Darigold, two bids from Foremost Farms, three bids from Land O'Lakes, and seven bids from Dairy Farmers of America for export assistance for a total of 1,572 metric tons (3.5 million pounds) of Cheddar cheese to the Middle East, Asia, and Africa.
The majority of the product will be delivered April through July 2010 with a small quantity extending delivery into October.
Since CWT reactivated the Export Assistance program on March 18, 2010, it has assisted members in making export sales of cheddar cheese totaling 4,102 metric tons (9.04 million pounds) to 13 countries on four continents.
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 funded by dairy cooperatives and individual dairy farmers, who contribute 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.