World Dairy Diary

Since CWT reactivated the Export Assistance program in March 18, 2010, it has assisted members in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 19,019 metric tons (41.9 million pounds) to 23 countries on four continents. In addition, sales of butter and anhydrous milkfat totaling 13,575 metric tons (29.9 million pounds) have been made to nine countries on three continents.

Assisting CWT members through the Export Assistance Program positively impacts producer milk prices in the short-term and in the long-term by helping member cooperatives to gain and maintain market share thus expanding the demand for U.S. dairy products.

Dairy Farmers of America will receive help in exporting 240,300 pounds of cheese. Darigold had one request accepted for 110,200 pounds of butter, CDI/Challenge had two requests accepted for 2.5 million pounds of butter, and Land O’Lakes had one request for 555,600 pounds of butter and one request for 123,500 pounds of cheese accepted by CWT.

Since CWT reactivated the Export Assistance program in March 18, 2010, it has assisted members in making export sales of Cheddar, Monterey Jack, and Gouda cheese totaling 19,019 metric tons (41.9 million pounds) to 23 countries on four continents. In addition, sales of butter and anhydrous milkfat totaling 14,886 metric tons (32.8 million pounds) have been made to eleven countries on three continents.

Assisting CWT members through the Export Assistance Program positively impacts producer milk prices in the short-term and long-term by helping member cooperatives to gain and maintain market share, thus expanding the demand for U.S. dairy products.

Since CWT reactivated the Export Assistance program in March 18, 2010, it has assisted members in making export sales of Cheddar, Monterey Jack, and Gouda cheese totaling 18,616 metric tons (41.0 million pounds) to 23 countries on four continents. In addition, sales of butter and AMF totaling 11,237 metric tons (24.8 million pounds) have been made to nine countries on three continents.

Assisting CWT members through the Export Assistance Program positively impacts producer milk prices in the long-term by helping member cooperatives to gain and maintain market share thus expanding the demand for U.S. dairy products.

CWT accepted one bid from Foremost Farms and three bids from Dairy Farmers of America for a total of 1,288 metric tons (2.84 million pounds) of Cheddar cheese to Europe, Africa, and South America. This product will be delivered in August through December 2010.

CWT also accepted one bid from Land O’Lakes, three bids from the Challenge Dairy Products subsidiary of California Dairies Inc., and six bids from Dairy Farmers of America for a total of 8,879 metric tons (19.6 million pounds) of butter and AMF to Europe, Central America, and the Middle East. Delivery will take place from August through January.

Since CWT reactivated the Export Assistance program in March 18, 2010, it has assisted members in making export sales of Cheddar, Monterey Jack, and Gouda cheese totaling 18,616 metric tons (41.0 million pounds) to 23 countries on four continents. In addition, sales of butter and AMF totaling 10,593 metric tons (23.4 million pounds) have been made to seven countries on three continents.

Assisting CWT members through the Export Assistance program positively impacts producer milk prices in the long-term by helping member cooperatives to gain and maintain market share thus expanding the demand for U.S. dairy products.

In the past month, the butter price at the CME has moved up to more than 13 cents a pound. As a result, the prices of butter and AMF in the U.S. have moved above the world price for these two commodities. The decision was made to make export assistance available on these two products in order to allow CWT members to maintain market share in light of the increase in the U.S. price.

As a result, CWT accepted four bids from Dairy Farmers of America and three bids from Land O’Lakes for 1,714 metric tons (3,778,724 pounds) of butter and AMF to Europe, the Caribbean, South America, and the Middle East. Delivery will take place from July through November.

CWT also accepted two bids from Dairy Farmers of America for 97 metric tons (213,848 pounds) of Cheddar cheese to Europe and Asia. This product will be delivered from August through November 2010.

Since CWT reactivated the Export Assistance program on March 18, 2010, it has assisted members in making export sales of Cheddar, Monterey Jack, and Gouda cheese totaling 17,330 metric tons (38.2 million pounds) to 23 countries on four continents. The totals have been adjusted due to the cancellation of a bid for 38 metric tons of cheese to Africa.

Since CWT reactivated the Export Assistance program on March 18, 2010, it has assisted members in making export sales of Cheddar, Monterey Jack, and Gouda cheese totaling 17,271 metric tons (38.1 million pounds) to 22 countries on four continents.

Assisting CWT members in exporting American-type cheeses positively impacts producer milk prices in the long-term by helping members to gain world market share and expanding demand for U.S. cheese.

Since CWT reactivated the Export Assistance program on March 18, 2010, it has assisted members in making export sales of Cheddar, Monterey Jack, and Gouda cheese totaling 17,095 metric tons (37.7 million pounds) to 22 countries on four continents. The change in the totals is due to a reduction in the amount of product for which CWT assistance was provided.

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 American-type cheeses provides the most immediate way to positively impact producer milk prices in both the short-term and the long-term.

CWT’s three herd retirements last year were the primary reason why U.S. cow numbers dropped steeply in 2009, “but cow numbers have leveled off since the end of the year,” said Jerry Kozak, President and CEO of NMPF, which administers CWT. “This latest herd retirement will push cow numbers lower still, which is what our industry needs to better align supply and demand.”

Starting next week, CWT farm auditors will begin visiting the farms whose bids were accepted, checking their milk production records, counting cows, and then tagging each cow for processing. All farmers will be notified no later than July 30th as to whether their bid was among those accepted in this herd retirement round, the tenth that CWT has conducted since 2003.

Once CWT auditors approve the herds accepted during the bid process, farmers have 15 days in which to send their animals to a processing plant. CWT will again provide each farmer the NMPF animal handling guidelines for the proper culling and transporting of dairy cattle, Kozak said.

Producers whose bids are accepted in this herd retirement will be paid in two installments: 90% of the amount bid times the producer’s 12 months of milk production when it is verified that that all cows have gone to slaughter, and the remaining 10% plus interest at the end of 12 months following the farm audit, if both the producer and his dairy facility – whether owned or leased – do not become involved in the commercial production and marketing of milk during that period.

Since CWT reactivated the Export Assistance program on March 18, 2010, it has assisted members in making export sales of Cheddar, Monterey Jack, and Gouda cheese totaling 17,695 metric tons (39 million pounds) to 22 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 American-type cheeses provides the most immediate way to positively impact producer milk prices in both the short-term and the long-term.

Since CWT reactivated the Export Assistance program on March 18, 2010, it has assisted members in making export sales of Cheddar, Monterey Jack, and Gouda cheese totaling 17,645 metric tons (38.9 million pounds) to 22 countries on four continents. Total net tonnage reduced due to cancellations.

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 American-type cheeses provides the most immediate way to positively impact producer milk prices in both the short-term and the long-term.

Since CWT reactivated the Export Assistance program on March 18, 2010, it has assisted members in making export sales of Cheddar, Monterey Jack, and Gouda cheese totaling 17,454 metric tons (38.5 million pounds) to 18 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 American-type cheeses provides the most immediate way to positively impact producer milk prices in both the short-term and the long-term.

Since CWT reactivated the Export Assistance program on March 18, 2010, it has assisted members in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 17,029 metric tons (38.0 million pounds) to 18 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 American-type cheeses provides the most immediate way to positively impact producer milk prices in both the short-term and the long-term.

Since CWT reactivated the Export Assistance program on March 18, 2010, it has assisted members in making export sales of cheddar cheese totaling 16,318 metric tons (36.1 million pounds) to 18 countries on four continents. Figures have been adjusted as a result of a cancellation and slight adjustments in amounts.

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 American-type cheeses provides the most immediate way to positively impact producer milk prices in both the short-term and the long-term.

Since CWT reactivated the Export Assistance program on March 18, 2010, it has assisted members in making export sales of cheddar cheese totaling 15,843 metric tons (34.9 million pounds) to 17 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 American-type cheeses provides the most immediate way to positively impact producer milk prices in both the short-term and the long-term.

“With beef prices very strong, and replacement cow and springer prices still relatively low, CWT has determined that it will consider bids up to, but not to exceed, $3.75 per hundredweight,” noted Mr. Kozak. “However, there is no guarantee that a producer who bids at the maximum level will be selected.”

Producers must still bid on a per hundredweight basis, and CWT will continue to review and accept bids beginning from the lowest bids received, moving up toward the maximum level. Farmers whose bids are accepted are paid by CWT for their milk production, and they also retain the beef value of the cows they send to processing.

As was the case in 2009’s herd retirement rounds, CWT has no set target for the volume of milk or the number of cows to be removed in this herd retirement.

“Whether CWT will remove a significant number of dairy animals will depend on the number of bids received and the price level of those bids. CWT will not pay more for cows than what they are currently worth in the marketplace,” he said.

Since CWT reactivated the Export Assistance program on March 18, 2010, it has assisted members in making export sales of cheddar cheese totaling 15,652 metric tons (34.5 million pounds) to 17 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 American-type cheeses provides the most immediate way to positively impact producer milk prices in both the short-term and the long-term.

Since CWT reactivated the Export Assistance program on March 18, 2010, it has assisted members in making export sales of Cheddar cheese totaling 15,544 metric tons (34.3 million pounds) to 17 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 American-type cheeses provides the most immediate way to positively impact producer milk prices in both the short-term and the long-term.

Since CWT reactivated the Export Assistance program on March 18, 2010, it has assisted members in making export sales of cheddar cheese totaling 11,228 metric tons (24.8 million pounds) to 15 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.

Since CWT reactivated the Export Assistance program on March 18, 2010, it has assisted members in making export sales of cheddar cheese totaling 9,219 metric tons (21.7 million pounds) to 15 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.