Cooperatives Working Together (CWT) accepted one bid from Dairy Farmers of America and two bids from Darigold on a total of 750 metric tons (1,653,467 pounds) of Cheddar cheese to the Middle East. 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 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.
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)