Cooperatives Working Together (CWT) has announced their updated export bids for the past week.
Two of the bids accepted were from Dairy Farmers of America of Kansas City, Mo., for the export of anhydrous milkfat to Mexico in the following amounts: 369 metric tons (813,506 lbs.), and an additional 36 metric tons (79,366 lbs.).
Two bids were accepted from California Dairies Inc., of Artesia, Calif., for two separate exports of butter to Guatemala, in the amounts of 18.85 metric tons (41,557 lbs.) each.
Finally, one bid was accepted from Humboldt Creamery of Fortuna, Calif., for a whole milk powder export of 20 metric tons (44,092 lbs.) to Nicaragua.
With these accepted bids, CWT’s total 2008 export obligations are: butter, 18,843 metric tons (41.5 million lbs.); cheese, 1,434 metric tons (3.2 million lbs.); whole milk powder, 1,248 metric tons (2.7 million lbs.); and anhydrous milkfat, 6,204 metric tons (13.7 million lbs.). The milk equivalent total of these products is 1.31 billion pounds.
Also today, CWT formally revised its operating procedures for its Export Assistance program reflecting the addition of skim milk powder (SMP), standardized to 34% protein content, and butter blends containing at least 75% butterfat. The CWT Committee had approved the addition of SMP and butter blends to the list of products eligible for export assistance when it met on October 27, 2008.
“The demand for U.S. dairy products overseas is growing,” said Jerry Kozak, President and CEO of National Milk Producers Federation, which operates the CWT program. “Adding skim milk powder is a logical extension of the CWT Export Assistance program. It is a $2.3 billion market that consumes 2.4 billion pounds of product annually. SMP product value ranks third behind cheese, and whole milk powder.”
Kozak said CWT is not intended to replace the federal Dairy Product Price Support Program (DPPSP), which supports the purchase price of nonfat dry milk powder (NFDM) at 80 cents per pound. Rather, it is intended to stimulate, promote and assist the export of skim milk powder standardized to 34% protein, which is not eligible for sale to the USDA’s Commodity Credit Corporation under the DPPSP. CWT will take into consideration the product support price level of NFDM in determining the appropriate level of export assistance to provide for SMP.