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What is CWT? Farmer-Led, Farmer-Funded |
- What is CWT?
- Who is investing in CWT?
- How does CWT strengthen prices?
- What has CWT done for all dairy farmers?
- CWT is run by dairy farmers
What is CWT?
Cooperatives Working Together (CWT) is a program designed exclusively by America’s dairy farmers for the benefit of America’s dairy farmers. It is a voluntary, producer-funded national program developed by the National Milk Producers Federation (NMPF), to strengthen and stabilize milk prices.
NMPF's analysis shows that the export market is growing at a rate of eight times faster than the domestic U.S. market. Therefore, the CWT Committee voted in 2010 for CWT to focus its future efforts on increasing sales of dairy products overseas with the Export Assistance program, rather than temporarily reducing the number of cows being milked through herd retirements.
Analysis by Dr. Scott Brown of the Food & Agricultural Policy Research Institute (FAPRI) and the University of Missouri shows that for every dollar invested by CWT in helping members to export dairy products, $16.59 has been returned to dairy producers. This kind of meaningful financial return to all dairy producers in all parts of the country can only reach its full potential if all producers make the right decision and invest just two cents per hundred pounds of milk in CWT. All dairy farmers reap the financial rewards that CWT provides, and so all dairy farmers, either individually or through their cooperative, should be investing in CWT.
Who is investing in CWT?
Dairy farmers in every state, producing almost 70% of the nation's milk, have committed to investing 2¢ per hundred pounds of milk (called a hundredweight, the symbol for which is cwt) in CWT. These producers are either members of the 35 cooperative members of CWT, or individual producers who recognize the tremendous benefit of this unique program.
How does CWT strengthen prices?
CWT uses the Export Assistance program to strengthen and stabilize prices by helping CWT member cooperatives compete in the world marketplace. Through 2010, CWT has helped to export over 281 million pounds of cheese, butter, anhydrous milk fat, skim milk powder, and whole milk powder to 52 countries on four continents. That is the equivalent of 4.6 billion pounds of milk sold.
What has CWT done for all dairy farmers?
The table below shows how CWT has helped producers by adding a total of over $10 billion to their milk checks:
| 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | |
|---|---|---|---|---|---|---|---|
| Herd Retirement | $0.20 | $0.50 | $0.60 | $0.86 | $0.78 | $1.61 | $1.75 |
| Export Assistance | $0.02 | $0.01 | $0.09 | $0.20 | $0.10 | $0.04 | $0.18 |
| Total CWT Impact | $0.22 | $0.52 | $0.69 | $1.06 | $0.88 | $1.66 | $1.93 |
CWT is run by dairy farmers
Every dairy farmer cooperative, regardless of size, that is a full member of CWT (investing 2¢ per cwt on all its members' milk) has representation on the CWT Committee. In addition, individual producers are represented by dairy farmers from their ranks appointed by the CWT Committee.
The CWT Committee reviews CWT's program effectiveness, approves changes to programs and policies, and oversees the management of CWT. CWT has two full time employees and utilizes NMPF staff when necessary to carry out its programs as directed. As a result, CWT administration costs are less than 2% leaving over 98% of the funds invested for programs.
CWT is in its eighth year of operation and continues to take action to improve producer margins. To do even more, CWT needs more dairy farmers investing in CWT.