Farmer owned dairy cooperatives came together to form the Cooperative Working Together (CWT) program.
The CWT is a supply management program. At this time the CWT is wrapping up their fourth round of the retirement program. There were 343 bids and $54,000 cows accepted for herd reduction. This will remove one billion pounds of milk per year reducing the USDA projected 2007 increase of 2.3 billion pounds by 45 percent.
Another facet of the CWT program is the export assistance of product. So far this year, product representing 390 million pounds of milk has been exported. These exports are building access for long-term markets for dairy farmers. Dr. Brown, economist from the University of Missouri did an analysis of the CWT programs and concluded there is a return on investment of 8 to 1. For every nickel invested 40 cents per cwt. was returned for dairy farmer benefit. For info on CWT, go online at www.cwt.coop
Now is the time for dairy farmers and their cooperatives to take the next step. There are two very timely articles in the April 10 issue of Hoard’s Dairyman. On page 268 is an article by Dr. Richard Levins, economist and professor emeritus at the University of Minnesota, on what I consider a very sensible approach to a new milk pricing system for farmers and the dairy industry. Farmer cooperatives will need to work together like they did with CWT to perfect the outline of what could be the most important development of programs for farmers since the CWT began.
The second article on page 260 shows 196 dairy cooperatives handling 86 percent of the total milk supply in 2002. Cooperatives sold 62 percent of their raw milk for further processing, processed 86 percent of the dry milk products, 71 percent of the butter and 40 percent of the natural cheese.
These two articles, in my opinion, lay out the framework of how a pricing system can be put together that will return one billion dollars per month after month into the dairy farmers’ pockets as Levins suggested.
It looks to me like the tools are in place.
Now, the question is, does your cooperative have interest in putting in place the final piece and do they have the desire to do this.
Your desire should be their desire. Dairy farmers now need to question their cooperative management to discover what the desire of their cooperative management is to accomplish a fair and equitable long-term pricing program for their dairy farmers.
You as a dairy farmer have all the tools on your farm to produce the quality of milk that you send to market, but none of the steps can be left out. If even one is left out, you will no longer be in the dairy business.
Let’s put the final piece in place for a fair and equitable pricing system for dairy families; the final tool for a long-term successful dairy farm and dairy industry. Wayne Prichard
Burlington, Mich. Don Conrad
New Holland, Ohio |
