CWT Program:
NMPF Board Building a Better CWT Program
September 4, 2024
- Member-driven proposals potentially expand exports
- Plan gains support across memberships
A painstaking process toward an improved, renewed Cooperatives Working Together Program has highlighted 2024, with NMPF staff experts, member cooperative economists, and dairy farmer leaders from NMPF members together re-envisioning a critical program for boosting U.S. dairy exports, with NMPF’s Board of Directors on Aug. 22 approving a series of proposed improvements to CWT.
Proposed changes include expanding product eligibility to all cheese varieties, extended shelf life/aseptic fluid milk, evaporated/condensed milk and ice cream; piloting programs offering targeted support for value-added skim milk powder sales to Southeast Asia and cheese sales to Central America and the Caribbean; increasing bid flexibility to extend eligible delivery periods, and removing volume limits on a trial basis; providing increased insight on market dynamics driving support levels with participating cooperatives; and creating an advisory group to provide strategic direction.
The adjustments will be considered at NMPF’s annual board meeting in Phoenix in October and comes after months of advisory, member-led meetings and discussion. Meanwhile, the current program continues to deliver results for U.S. dairy farmers and cooperatives.
CWT member cooperatives secured 49 contracts in August, adding 5.2 million pounds of product to CWT-assisted sales in 2024. In milk equivalent, this is equal to 44.8 million pounds of milk on a milkfat basis. These products will go to customers in Asia, Central America, the Caribbean, Middle East-North Africa and South America and will be shipped from August 2024 through January 2025.
Exporting dairy products is critical to the viability of dairy farmers and their cooperatives across the country. Whether or not a cooperative is actively engaged in exporting cheese, butter, anhydrous milkfat, cream cheese, or whole milk powder, moving products into world markets is essential. CWT provides a means to move domestic dairy products to overseas markets by helping to overcome U.S. dairy’s trade disadvantages.
The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export volumes. CWT will pay export assistance to the bidders only when export and delivery of the product is verified by the submission of the required documentation.
