CWT Auditors Start Taking Cows off Farms

About 200 million pounds of cheese production is about to leave the market thanks to the latest CWT buyout.

Cooperatives Working Together has auditors visiting the 388 farms tentatively accepted in the program's seventh herd retirement. The process is underway this week for removing nearly 103,000 cows that produced about 2 billion pounds of milk in 2008.

CWT officials released more detailed information about the size and scope of the self-help program's largest-ever herd retirement program with 60% of the farms selected located east of the Mississippi River, while 79% of the cows to be removed are from Western and Southwest regions of the U.S.

Jim Tillison, Chief Operating Officer of CWT, put the scope of this herd retirement round in perspective by estimating that "the amount of milk we're removing is equivalent to eliminating the future production of 200 million pounds of cheddar cheese per year."

Farmers had submitted a total of 535 herd retirement bids last month to CWT, and CWT was able to accept the nearly three-quarters of them. CWT is also removing approximately 1,000 bred heifers, which is an option under the program.

The table below outlines the program for 2009.

Region

Northeast

Southeast

Midwest

Southwest

West

Total

Total Bids Received

69

72

178

89

127

535

Total Bids Accepted

42

56

134

68

88

388

Total Cows Offered

7,287

8,954

11,754

62,221

71,591

161,807

Total Cows Accepted

5,156

7,042

8,595

43,607

38,498

102,898

Total Milk Offered

139.5 million pounds

145.7 million pounds

208.0 million pounds

1.13 billion pounds

1.34 billion pounds

2.96 billion pounds

Total Milk Accepted

104.7 million pounds

117.3 million pounds

154.1  million pounds

862.8  million pounds

761.1 million pounds

2.0 billion pounds

% Milk Accepted

5%

6%

8%

43%

38%

100%

% Cows Accepted

5%

7%

8%

42%

37%

100%

States in each region

CT, DE, ME, MA, MD, NH, NJ, NY, PA, RI, VT

AL, AR, GA, KY, LA, MO, MS, NC, SC, TN, VA, WV

IL, IN, IA, MI, MN, ND, OH, SD, WI

AR, CO, KS, NE, NM, OK, TX

CA, ID, MT, NV, OR, UT, WA, WY

 

 

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