Tuesday, 01 May 2012 11:23

US dairy farmers to subsidise exports

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A UNITED States dairy farmers group is subsidising the export of 824 tonnes of cheese and 487 tonnes of butter to customers in Asia, Central America, the Middle East and North Africa.  The product is to be delivered by September.

Cooperatives Working Together (CWT) says it has accepted 16 requests for export help from Bongards Creameries, Dairy Farmers of America, Darigold, Foremost Farms, Michigan Milk Producers Association, Upstate Niagara Cooperative and United Dairymen of Arizona.

CWT has also announced it will begin assisting sales of whole milk powder.

CWT is a voluntary, producer-funded scheme by the National Milk Producers Federation to strengthen and stabilise milk prices. Dairy farmers in every state, producing almost 70% of the country’s milk, have signed to give 2c for each 45kg of milk they produce.  The federation says the export market is growing eight times faster than the domestic U.S. market. 

CWT decided in 2010 to focus on increasing sales of dairy products overseas via the export assistance scheme, rather than funding a well-known herd retirement scheme.

It says an analysis shows that for every dollar spent by CWT in helping members export dairy products, $16.59 is returned to dairy producers.

   This export funding means CWT this year has now assisted member co-operatives to sell cheddar, monterey jack and gouda cheese totalling 19,685 tonnes, and 17,463 tonnes of butter, to 25 countries on four continents.

   On a butterfat basis, the milk equivalent of these exports is 562,000 tonnes, or the same as the annual milk production of 59,000 cows.

   CWT says this help to its members supports producer milk prices short-term by reducing inventories that overhang the market and depress cheese and butter prices.

   “In the long-term, CWT’s [scheme] helps member co-ops gain and maintain market share, thus expanding the demand for US dairy products and the farm milk that produces them,” it says.

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