Missouri Dairy Business Update Commercial Agriculture
Volume 3, Number 7
July 2003

Bidding in the CWT program

The Cooperatives Working Together program is now in operation. Bid forms were distributed to all participating producers on July 25, 2003.

Bidding to enroll in the herd retirement and marketing retirement program begins August 1st. Completed bids must be received by August 22nd to be considered. To bid, you must be a member of a participating cooperative, or an independently enrolled producer.

Successful bidders will be chosen September 5th and announced September 12th. Successful bidders in the Herd Retirement Program will see their herds removed between September 13th and October 26th. Successful bidders in the Market Reduction program will start their contract on October 1, 2003.

Our region of the country is only targeted for a 0.5% reduction in milk marketing. Missouri typically drops milk production faster than that rate even in good years. Therefore, for producers wanting to cut back or retire, this may offer an opportunity to gather a bit more revenue. However, one may expect the bids to be very competitive for this same reason.

UC Davis has a nice excel spreadsheet to assist producers in making bids: http://ceglenn.ucdavis.edu/Dairy/CWT_Program_Bid_and_Cost_Estimates.htm

Details of the CWT program are available at http://www.cwt.coop/ or through your milk marketing cooperative.

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