Cooperatives Working Together announced Friday that it will conduct its second dairy herd retirement of 2009. In order to have a more immediate impact, CWT is shortening the time frame for producers to submit bids. A maximum bid level is also being announced for this round.
"With the ongoing financial pressure on dairy farmers, and because the vast majority of farmers are familiar with CWT's Herd Retirement program and how it works, we shortened the bidding window to two weeks,” said Jerry Kozak, President and CEO of NMPF, which manages CWT. "To expedite and simplify the bidding process, CWT will consider bids up to, but not to exceed $5.25 per hundredweight. However, there is no guarantee that a producer who bids at the maximum level will be selected.”
CWT recently concluded its largest-ever herd retirement, whicht removed 101,040 cows that produced almost 2 billion lbs. of milk.
"Carrying out a second herd retirement right on the heels of the largest-ever herd retirement should give us a double-barreled attack on milk production in a very short period of time, resulting in a farm level price recovery several months sooner than would otherwise occur, " Kozak said.
Source: National Milk Producers Federation news release