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Revisions to CWT Operating Procedures Help Increase Dairy Export Sales in May

June 13, 2018

In May, member cooperatives in the Cooperatives Working Together (CWT) program secured 33 contracts to sell 2.36 million pounds of American-type cheeses, 2.54 million pounds of butter and 9.26 million pounds of whole milk powder to customers in Asia, Central America, Europe, the Middle East, North Africa and Oceania. The product will be shipped to customers in 25 countries in five regions of the world from May through October 2018.

The 2018 total of CWT-assisted dairy product sales is 35.36 million pounds of cheese, 11.04 million pounds of butter and 10.18 million pounds of whole milk powder. The total tonnage is up 46 percent compared to the first five months of 2017. These transactions will move overseas the equivalent of 649 million pounds of milk on a milkfat basis.

The amount of dairy products slated for export through CWT reflects 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.

A thriving dairy export sector is critical to the growth and viability of dairy farmers across the country.  Regardless of whether a cooperative is actively engaged in exporting cheese, butter or whole milk powder, the domestic market cannot absorb the current level of domestic milk production. CWT provides a means to move domestic dairy products to overseas markets by helping to overcome certain disadvantages, such as the domestic/global price gap and shipping costs.  All cooperatives and dairy farmers are encouraged to add their support to this important program. Membership forms are available on the CWT website.