MidTerm Report

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• Mid-Term Report
• January 2004

January 2004
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objective
Bring long term price relief and stability to
dairy farmers by more closely aligning supply and
demand.
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is

• Is funded by 5 per CWT assessment on
  participating producers
• Has a budget of approximately 54 million
• Will remove 1.2 billion pounds of milk via
• Herd Retirements (completed 11/2003)
• Reduced Production Marketings (10/1/2003-9/30/2004
  )
• Export Assistance (1/1/03-6/30/04)

January 2004
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Herd Retirement

• 2038 bids submitted
• 299 bids accepted
• 32,724 cows removed
• 608.7 million pounds of milk
• 25.4 million expenditure
• 4.02 average bid per farm
• 4.99 maximum bid accepted

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Reduced Production Marketings

• 514 bids submitted
• 77 bids accepted
• 17 average reduction
• 88.2 million pounds of milk
• 3.8 million expenditure
• 4.07 average bid per farm
• 5.00 maximum bid accepted

January 2004
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Export Assistance

• On-going until June 30, 2004
• Activated when the U.S. price of cheese falls to
  1.30/lb. and butter to 1.20/lb
• Expected to export cheese and butter equivalent
  to 500 million pounds of milk
• Open to CWT member organizations

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is

• Returning producers investment 12-fold

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PRODUCERS GET BIG RETURN ON CWT INVESTMENT
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is

• Returning producers investment 12-fold
• Increasing producer income by more than 1 billion

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is

• Returning producers investment 12-fold
• Increasing producer income by more than 1
  billion
• Reducing the national herd

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January 2004
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is

• Returning producers investment 12-fold
• Increasing producer income by more than 1
  billion
• Reducing the national herd
• Delivering under budget

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More Milk Removed for Less Money
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is

• Returning producers investment 12-fold
• Increasing producer income by more than 1
  billion
• Reducing the national herd
• Delivering under budget
• Uniting dairymen

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Dairymen Working TogetherToday and Tomorrow
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What others are saying about WT
At least the industry is looking for creative
solutions. We can sit back and complain all we
want, but complaining is not going to get the job
done. Dairy Herd Management Editorial
January 2004
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What others are saying about WT
It (CWT) is the best option available for
controlling the downward spiral of lower milk
prices for farmers and higher subsidy costs to
taxpayers. Wisconsin State Journal Editorial
January 2004
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What others are saying about WT
It (CWT ) deserves the full support of every
dairy co-op and other milk buyers who care about
the people who supply their milk and where and
how their milk will be produced five and ten
years from now. Doing nothing is not an
option. Hoards Dairyman Magazine Editorial
January 2004
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I want to thank all the dairymen who had the
vision to step forward and support CWT. You did
this. I want to commend you for having the
courage to make the commitment to fund this
revolutionary program that helps all dairy
farmers.
And, I want to challenge you to keep it going.
CWT works! Lets make sure that this important
tool continues to strengthen and stabilize milk
prices.
Jerry Kozak, President/CEO National Milk
Producers Federation
January 2004
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• It Works!
• Lets keep it going!

January 2004