ARLINGTON, VA – Following an economic evaluation of the competitiveness of U.S. butter and anhydrous milkfat (AMF) prices, Cooperatives Working Together (CWT) added these two products to those currently eligible for assistance under the CWT Export Assistance program.
In the past month, the butter price at the CME has moved up to more than 13¢/lb. As a result, the prices of butter and AMF in the U.S. have moved above the world price for these two commodities. Providing export assistance on these two products will allow CWT members to maintain market share in light of the increase in the U.S. price.
Following the decision, CWT accepted four bids from Dairy Farmers of America and three bids from Land O’Lakes for 1,714 metric tons (3.78 million lbs.) of butter and AMF to Europe, the Caribbean, South America and the Middle East. Delivery will take place from July through November.
CWT also accepted two bids from Dairy Farmers of America for 97 metric tons (213,848 lbs.) of cheddar cheese to Europe and Asia. This product will be delivered from August through November 2010.
Since CWT reactivated the Export Assistance program on March 18, 2010, it has assisted members in making export sales of cheddar, Monterey Jack, and Gouda cheese totaling 17,330 metric tons (38.2 million lbs.) to 23 countries on four continents. The totals have been adjusted due to the cancellation of a bid for 38 metric tons of cheese to Africa.