Cooperatives Working Together (CWT) has accepted 11 requests for export assistance from Dairy Farmers of America, Darigold, Foremost Farms, and Maryland & Virginia Milk Producers Cooperative to sell a total of 1,186 metric tons (2.615 million pounds) of Cheddar and Monterey Jack cheese and 341 metric tons (0.752 million pounds) of butter to customers in Africa, Asia, the Middle East and South America. The product will be delivered May through July 2012.
CWT also announced today that, beginning the week of May 7th, it will begin accepting requests for export assistance for Anhydrous Milk Fat (AMF). This decision was the result of a thorough economic review of world market fundamentals and the potential return on investment for dairy producers.
In 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 46.0 million pounds, and butter totaling 39.2 million pounds, to 26 countries on four continents. On a butterfat basis, the milk equivalent of these exports is 1.280 billion pounds, or the same as the annual milk production of 60,900 cows.
Assisting CWT members through the Export Assistance program positively impacts producer milk prices in the short-term by reducing inventories that overhang the market and depress cheese and butter prices. In the long-term, CWT's Export Assistance program helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the farm milk that produces them.
CWT will pay export bonuses to the bidders only when delivery of the product is verified by the submission of the required documentation.
The Cooperatives Working Together (CWT) Export Assistance program is funded by voluntary contributions from dairy cooperatives and individual dairy farmers. The money raised by their investment is being used to strengthen and stabilize the dairy farmers' milk prices and margins. For more information about CWT, visit www.cwt.coop.