Missouri Dairy Business UpdateCommercial Agriculture
Volume 3, Number 4

April 2003

CWT - "Cooperatives Working Together" plan to increase milk prices

NMPF is putting the finishing touches on a three-pronged producer funded program to help strengthen and stabilize farm-level milk prices. The new program, entitled "Cooperatives Working Together," will be the subject of a special NMPF Board of Directors meeting on May 9th. At that meeting, the NMPF Board, along with representatives from the entire NMPF membership, will be asked to vote on whether CWT should be approved and implemented.

CWT's objective is to develop and implement a multidimensional program that will help stabilize producer prices for a minimum of 12 months. The program is slated to commence this summer, depending on how quickly a funding and management structure can be finalized following the NMPF Board decision in May. NMPF staff are still working out the details of the three elements of the program directed at aligning milk supplies with demand. These include:

Participation in CWT will be open to all dairy cooperatives, and also to individual farmers not affiliated with a dairy cooperative. As currently envisioned, CWT will be administered under the present structure of NMPF by a management committee consisting of a representative from each participating cooperative.

The NMPF Economic Policy Committee is still working on program elements to ensure that the impact of the supply stabilization program does not disproportionately impact certain regions of the country. The EPC Committee and NMPF staff are developing safeguards to ensure that participation in the program by does not cause unreasonable long-term regional changes in milk supply and that supply reductions are focused on regions where the greatest increases in production capacity currently exist.

Also, NMPF will soon be producing a brochure on CWT, and sharing it with members to help educate farmers about CWT's goals.

CWT Talking Points

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