2003 CWT Story

The National Milk Producers Federation announced Thursday that, with more than 70% of the nation's milk volume committed to participate, it now has reached the critical threshold Critical threshold, a notion derived from the percolation theory, refers to a threshold, that summons up to a critical mass. Under the threshold the phenomenon tends to abort, above the threshold, it tends to grow exponentially. necessary to start its new voluntary, producer-funded program to better align dairy supply and demand, Cooperatives Working Together (CWT cwt

112 pounds avoirdupois weight. ).

After discussions earlier this week, the NMPFNMPF National Milk Producers Federation
NMPF Network Management Productivity Facility
..... Click the link for more information. Board of Directors approved a modified version of the original CWT concept, one that would collect 5 cents per hundredweight hun·dred·weight
n. pl. hundredweight or hun·dred·weights Abbr. cwt
1. A unit of weight in the U.S. Customary System equal to 100 pounds (45.36 kilograms). from participating dairy cooperatives and/or individual producers. On Tuesday, the level of participation in CWT was slightly under the 70% level necessary to launch the program. Subsequently, additional commitments have been received, pushing the membership level above the 70% threshold, allowing NMPF to begin the program.



"We're thrilled to be able to move forward with CWT. This groundbreaking program is tremendously important for the dairy producer community," said Jerry Kozak, NMPF President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "It not only offers relief to dairy farmers facing record low prices; it also allows them to begin to improve marketing conditions by helping to balance supply with demand."

Beginning immediately, CWT will use the proceeds from the 5 cent per hundredweight contribution by participating dairy producers to implement a multi-dimensional program to reduce milk supplies by 1.2 billion pounds over a 12-month period.

The money raised by the program -- estimated at $60 million in the coming 12 months -- will be apportioned among three supply reduction programs to maximize the program's effectiveness. The three include a dairy product export assistance program, a herd retirement program, and a milk production reduction program.

"We've revised the CWT concept, lowering the assessment to a nickel, to encourage as many farmers to participate as possible," Kozak said. "CWT's goal is to achieve an average 400% net return on investment for farmers," he added. The program's activities are targeting an average increase in the all milk price of 36 cents per cwt., which would result in a net return of 23 cents per cwt., when factoring in the cost of the assessment and lower government Milk Income Loss Contract (MILC MILC Milk Income Loss Contract
MILC Metal-Induced Lateral Crystallization
MILC Modified Intermediate Load Cycle ) payments.

"We've witnessed enormous volatility in the past seven or eight years, which has really made it difficult for dairy farmers to plan and budget. This program's benefits include not only strengthened prices, but better price stability in the future," Kozak said. "Many people said it was an impossible task to get producers to work together; CWT proves them wrong."

While the program was designed by NMPF, Cooperatives Working Together has also received the backing of other dairy cooperatives not part of the NMPF membership, and from individual dairy producers not affiliated with a dairy cooperative. The program will continue to solicit participation from interested farmers and dairy cooperatives. Enrollment information, and related details, can be obtained through NMPF or on the Web at http://www.cwt.coop/.

The National Milk Producers Federation, headquartered in Arlington, VA, develops and carries out policies that advance the well-being of U.S. dairy producers and the cooperatives they collectively own. The members of NMPF's 34 cooperatives produce the majority of the U.S. milk supply, making NMPF the voice of 60,000 dairy producers on Capitol Hill and with government agencies.

CONTACT: Christopher Galen of the National Milk Producers Federation, +1-703-243-6111, ext. 356, or Cgalen@nmpf.org; or Susan Mora MORA, In civil law. This term, in mora, is used to denote that a party to a contract, who is obliged to do anything, has neglected to perform it, and is in default. Story on Bailm. Sec. 123, 259; Jones on Bailm. 70; Poth. Pret a Usage, c. 2, Sec. 2, art. 2, n. , +1-202-496-2125, for the National Milk Producers Federation

Web site: http://www.nmpf.org/ http://www.cwt.coop/