National Milk Producers Federation

Release Date: March 09, 2005

ARLINGTON, VA – The National Milk Producers Federation's Board of Directors voted yesterday to reauthorize the industry-funded and managed price stabilization program Cooperatives Working Together (CWT) for another eighteen months of operations, beginning on July 1, 2005. The NMPF Board approval of the CWT renewal followed a similar vote on Monday by the CWT Committee, which helps direct the program.

By a unanimous vote, the NMPF membership agreed Tuesday to extend the program into a third year, until December 31st, 2006. The principal reason for the 18-month extension was to align CWT's fiscal calendar (July to June), with the NMPF fiscal year (Jan.-Dec.), thus allowing for more efficient management of the program.

“With nearly two years history behind us, we can say without equivocation that CWT is having a positive impact on the lives of all dairy farmers in this country,” said Jerry Kozak, President and CEO of the National Milk Producers Federation.

“Our herd retirements have removed more than 80,000 cows, impacting both immediate and long-term production, and our export program has been effective in strengthening cheese and butter prices. Our members have once again enthusiastically endorsed this historic program, and we are very optimistic about what the future holds for CWT,” Kozak said.

With a second successful round of herd retirements recently completed, CWT is now in the process of developing a long-term strategic plan for the future of the farmer-led and -funded organization. That plan, when it is complete later this year, will help guide CWT's future operations, and sharpen its focus on the ongoing goal of helping align milk supplies and demand.

CWT will again be funded by a five-cent per hundredweight assessment on producers, either through their membership in a participating cooperative, or through their individual participation in CWT. Kozak said that another immediate focus will be increasing the current 71% participation level in the program, and that efforts will continue this spring and summer to involve more cooperatives and individual dairy producers.

Since 2003, the program has reduced milk supplies by nearly 1.7 billion pounds, through the combination of two herd retirement programs, a reduced production marketings program, and enhanced cheese exports. Farm-level milk prices have been consistently above-average since CWT's operations began two summers ago, and government expenditures on dairy safety net programs have been minimal.