CWT Assists with 13.8 Million Pounds of Butter and Cheese Export Sales
Source: Cooperatives Working Together
Cooperatives Working Together (CWT) has accepted 17 requests for export assistance from Bongards, Dairy Farmers of America, Darigold, Land O’Lakes, Upstate Niagara subsidiary O-At-Ka and United Dairymen of Arizona to sell a total of 1,288 metric tons (2.840 million pounds) of Cheddar, Monterey Jack and Gouda cheese and 4,969 metric tons (10.955 million pounds) of butter to customers in Asia, Europe, the Middle East and North Africa. The product will be delivered January through June 2012.
After reviewing several market fundamentals, CWT determined that it should begin assisting member cooperatives in making sales of butter overseas. CWT’s strategic plan, approved by the CWT Committee last year, called for funds to be budgeted in 2012 for that purpose.
In 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 13.2 million pounds and butter totaling just less than 11 million pounds to 12 countries on four continents.
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 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.
