News and Press

Export Assistance Update Summer 2012

 CWT 2012 assisted export sales at record pace

The Export Assistance program is assisting members in selling dairy products overseas at a record pace. For the first six months of 2012, assisted sales of American-type cheeses are up 42 percent compared to the first six months of 2011. In addition, CWT has helped member cooperatives sell butter to 22 countries during the same period.

Cheese sales strong

CWT is focusing its efforts on assisting members in exporting products that will have the most direct, positive impact on dairy farmer milk prices. For the first half of 2012, CWT has assisted 10 different member cooperatives in making expSummer 1ort sales of 65 million pounds of American-type cheeses. As the graph to the right shows, the vast majority of these sales were Cheddar.

The graph below shows the distribution of the cheese sold in the first half of 2012. Asia accounts for nearly 47% of cheese sold while the Middle East ranks second at 23.8% followed by North Africa at just over 15%.

Japan is the leading individual country accounting for 31% of the total cheese sales in 2012 including

 

Japan is the leading individual country accounting for 31% of the total cheese sales in 2012 including 96% of all Monterey Jack export sales. All of the cheese sales in the first half of 2012 are scheduled to be shipped and delivered before the end of the year.

Summer 2

Butter sales very good as well

Since CWT added butter in January to the active list of products it will assist members in selling overseas, 133 sales to 22 countries totaling 45.7 million pounds have been made.  Considering that there is a reported world surplus of butterfat, this level of sales activity is even more impressive.

 

 

What’s more, all of the sales are for butter containing 82% butterfat. U.S. butter contains a minimum of 8Summer 30% butterfat so arguably these export

sales are equivalent to another million pounds of domestic butter sold.

As the graph on the right shows, sales of butter are the reverse of CWT-assisted cheese sales with the Middle East accounting for almost 70% of all butter sales while sales in Asia were 8%.

Nearly one-third of all butter sales to the Middle East were to Saudi Arabia. Egypt accounted for nearly one-fifth of butter sales to that region.

In North Africa, Morocco accounted for 90% of the CWT-assisted sales.

 

CWT: the only option dairy farmers have to improve their situation

Until Congress passes a farm bill with the Dairy Security Act provisions in it, action taken by CWT to assist members in making export sales is the only industry-wide option dairy farmers have to improve their current financial position.

In the first six months of 2012, the export sales CWT has helped member cooperatives make are equivalent to removing 1.6 billion pounds of milk (milkfat basis) from the domestic market. That is equal to the annual milk production of over 75,000 cows.

Through the end of June, U.S. milk production is running 3 billion pounds ahead of 2011. CWT has helped members to export over half of that increased production. American-type cheese production is running 60 million pounds ahead of 2011 — CWT has helped members sell more than that amount of American-type cheese overseas.

Over the next months, there are a few simple things dairy farmers can do to try and positively impact their family’s financial security:

  • If your cooperative is not already investing just 2¢ per hundredweight in CWT, urge your cooperative’s board to do something now that is and will continue to make a difference in your milk price and, therefore, your bottom line, or.
  • Ask your neighbors if they are supporting CWT. Give them a copy of this newsletter and a membership form available on the CWT website www.cwt.coop.

Look what 70% of the milk participating in CWT is doing. Imagine what having 100% can do.