Cooperatives Working Together (CWT) accepted one bid from Foremost Farms, two bids from Dairy Farmers of America and five bids from Darigold on a total of 911 metric tons (2,007,971 pounds) of Cheddar cheese and Monterey Jack to the Middle East and Asia. The product will be delivered June through December 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 17,029 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.
CWT will pay export bonuses to the bidders, only when delivery of the product is verified by the submission of the required documentation.
Source: Cooperatives Working Together (CWT)