Cooperatives Working Together, (CWT), the
dairy industry’s newest self-help program, is
quickly gaining ground and has become one of the
hottest topics of discussion amosg farmers across
the nation. Geared to benefit all producers, this
farmer-led and funded economic initiative ad
dresses supply and demaiid imbalances that are
depressing milk prices. Once 80 percent of the na
tional milk supply has signed on board, the Na
tional Milk Producers Federation will launch
CWT’s three-dimensional assault aimed at reduc
ing the national milk supply by 2.7 percent or 4.6
billion pounds of milk.
According to organizers, CWT’s highest priority
is to ensure that no one region within the country
bears the brunt of the program, or suffers a dispro
portionate loss of production capacity. NMPF’s
Economic Policy Committee has established safe
guard levels on a regional basis. Each region is able
to participate up to a maximum level equivalent to
one year’s growth in milk production or one-half of
one percent of the region’s annual milk production,
whichever is greater.
For example, the most milk that can be cut from
Region I is ISO million pounds, or one-half of one
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CWT Gaining Ground
percent of tbe annual milk production within the
region. For members in region 2, the safeguard limit
is set at 70 million pounds.
Three Dimensional Approach
In order to work well, CWT has to be multidi
mensional. NMPF has identified three target pro
grams to most effectively reduce milk production.
Each program is responsible for eliminating a spe
cific percent of the 4.6 billion pounds. The Herd Re
tirement Program is allotted 45 percent, a Dairy
Product Export Assistance Program 35 percent and
ten percent assigned to a Reduced Production Mar
ketings Program. The remaining ten percent will be
applied to the above programs as appropriate, de
pending on how the program progresses and how
quickly the initial target goals are reached.
The CWT program earning the most producer at
tention and interest is the Herd Retirement Pro
gram. This portion of CWT will call for bids, on a
per hundredweight basis, for the purchase of whole
herds. Producers will be asked to submit herd
records to verify milk production and will be au
dited before purchase. Once verified, CWT will take
possession of the animals and commit them to
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