Cooperatives Working Together (CWT) last week accepted four bids from Foremost Farms and six bids from Dairy Farmers of America for export assistance for a total of 2,046 metric tons (4.5 million pounds) of Cheddar cheese to the Middle East, Asia, Africa, and Central America. The majority of the product will be delivered April through July 2010, with a quarter of the total quantity to be delivered into October.
CWT also announced today that it is expanding the types of cheese varieties eligible for export bonuses to include Gouda, Colby, and Monterey Jack.
Adding these three types of cheeses to the products currently eligible for export assistance should divert milk from unneeded Cheddar production and reduce the buildup of additional Cheddar inventories.
Since CWT reactivated the Export Assistance program on March 18, 2010, it has assisted members in making export sales of cheddar cheese totaling 6,148 metric tons (13.6 million pounds) to 14 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.
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