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Another Round of Dairy Buyouts

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CWT is immediately launching next herd buyout



FEEDSTUFFS

(7/10/2009)

Rod Smith



Cooperatives Working Together (CWT) announced this morning that, having just completed its largest-ever and seventh herd retirement round, it immediately is launching an eighth round, with bids due by July 24.



Bids will be accepted up to $5.25/cwt., and producers may once again bid in their bred heifers at $700 per animal, CWT said.



The just-completed round bought out 101,040 cows that produced almost 2 billion pounds of milk last year and by itself was to make the dairy herd "noticeably smaller" this summer, CWT said earlier this week.



Carrying out the next buyout on the heels of the seventh round "should give us a doubled-barreled attack on milk production in a very short period of time, resulting in a farm-level price recovery several months sooner than would otherwise occur," said Jerry Kozak, chief executive officer and president of the National Milk Producers Federation, which manages CWT.



Detailed information, including bid forms and an interactive bid calculator to help estimate bids, is available at www.cwt.coop or by calling 888-463-6298.



feedstuffs.com
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So how is this type of ineffective, government-run supply management any more acceptable than the Canadian system of supply management which actually gives the producers the necessary ROI?
 
burnt said:
So how is this type of ineffective, government-run supply management any more acceptable than the Canadian system of supply management which actually gives the producers the necessary ROI?
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This isn't government run....This is the dairy folks themselves....

Cooperatives Working Together (CWT) announced this morning that, having just completed its largest-ever and seventh herd retirement round, it immediately is launching an eighth round, with bids due by July 24.
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CWT (Cooperatives Working Together) is a program designed exclusively by America's dairy farmers for the benefit of dairy farmers. It is a multi-dimensional, voluntary, producer-funded national program developed by National Milk Producers Federation (NMPF), to strengthen and stabilize milk prices by balancing supply with demand.

http://www.cwt.coop/
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Oldtimer said:
burnt said:
So how is this type of ineffective, government-run supply management any more acceptable than the Canadian system of supply management which actually gives the producers the necessary ROI?
Click to expand...

This isn't government run....This is the dairy folks themselves....

Cooperatives Working Together (CWT) announced this morning that, having just completed its largest-ever and seventh herd retirement round, it immediately is launching an eighth round, with bids due by July 24.
Click to expand...

CWT (Cooperatives Working Together) is a program designed exclusively by America's dairy farmers for the benefit of dairy farmers. It is a multi-dimensional, voluntary, producer-funded national program developed by National Milk Producers Federation (NMPF), to strengthen and stabilize milk prices by balancing supply with demand.

http://www.cwt.coop/
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Well that seems like a "fits and starts" way to try to manage the supply. What's to keep those who don't participate in the buyout from expanding to get a little bigger share of the "improved" market prices?
 
i have never understood this program,they pay for american dairy farmers to quit milking and they give extremely low interest rates for the foreigners to start new dairies,the one dairy here is expanding in leaps and bounds,even with low milk prices
 
Silver said:
Is the Canadian system government run?
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IT SURE AS HELL ISN'T

BTW, IT'S NOT IN TROUBLE EITHER !!!!!!!!

Like OT said government has nothing to do with the US dairy industry it is the cooperative group that is making the decisions.
BUT maybe some of you should be more worried as to what is happening to the whole ag sector right now instead of yourselves or are you the type of person who's neighbors place gets destroyed by a tornado and yours is missed by inches but yet you are the first one to help them out at 100% profit..

I think SOME of you should be less poor me and more what the hell is happening to the whole industry the whole agriculture industry not just YOU and that you may take a 2cent per pound hit this year. WTF?????????
 
cowwrangler said:
i have never understood this program,they pay for american dairy farmers to quit milking and they give extremely low interest rates for the foreigners to start new dairies,the one dairy here is expanding in leaps and bounds,even with low milk prices
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But, they also came into your country with millions of dollars..

BTW, there is only one way to get into dairy in Alberta,unless you come from a country that has done huge land and quota buy outs, you are born into it or you marry into because there ain't no way in hell that Tom, Dick or Jane could ever afford to be in it unless they win the lotto.
 
The problem is, as I see it , is that technology is increasing the productivity
of the dairy cow faster than the demand for her product..... More milk from fewer cows has been has been the norm for decades . People just don't want to drink milk like they used to. They want to drink Coke ,Pepsi, Bud or one of those stupid energy drinks........And they aren't concerned if it is organic!!!!
 
hillsdown said:
.......should be more worried as to what is happening to the whole ag sector right now ......

.......what the hell is happening to the whole industry the whole agriculture industry
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This is something I wonder about at least once a week. Its not just the CWT's, it's the agricultural industry as a whole, the CWT's are just one of many cogs in the agricultural wheel.

K
 
Agriculture is in bad shape all around. We have, in general, bought into the false philosophy that bigger is better and keep up your profits by producing more at a smaller margin.

All this has done is produce a huge, guaranteed supply of unusually superior product for the humongous multinational corporations who make their margin regardless of price.

What I could never figure out is how a farmer can expect to make money on 1000 of something if he or she couldn't make money on 100. And if I hear the word "efficiency" one more time . . .

A column I am writing has this phrase - " The . . . prevailing market conditions are a direct result of the malignant confluence of stingy consumer spending habits, producer ego and greed, and corporate end user buying power . . ."
 
burnt said:
Agriculture is in bad shape all around. We have, in general, bought into the false philosophy the bigger is better and keep up your profits by producing more at a smaller margin.

All this has done is produce a huge, guaranteed supply of unusually superior product for the humongous multinational corporations who make their margin regardless of price.

What I could never figure out is how a farmer can expect to make money on 1000 of something if he or she couldn't make money on 100. And if I hear the word "efficiency" one more time . . .

A column I am writing has this phrase - " The . . . prevailing market conditions are a direct result of the malignant confluence of stingy consumer spending habits, producer ego and greed, and corporate end user buying buying power . . ."
Click to expand...

I'd like to read the rest of the column.
 
per said:
burnt said:
Agriculture is in bad shape all around. We have, in general, bought into the false philosophy the bigger is better and keep up your profits by producing more at a smaller margin.

All this has done is produce a huge, guaranteed supply of unusually superior product for the humongous multinational corporations who make their margin regardless of price.

What I could never figure out is how a farmer can expect to make money on 1000 of something if he or she couldn't make money on 100. And if I hear the word "efficiency" one more time . . .

A column I am writing has this phrase - " The . . . prevailing market conditions are a direct result of the malignant confluence of stingy consumer spending habits, producer ego and greed, and corporate end user buying buying power . . ."
Click to expand...

I'd like to read the rest of the column.
Click to expand...

When I get it finished, I will post it. Right now I am in too sour a mood to write so it remains unfinished.

I am only mildly enthused to start building this new barn next Thursday. Building a new barn should, it seems to me, be one of the most exciting things a farmer could ever do. But with the tough conditions we have faced for the past 6 years, it is hard to get excited about anything.

Is it just me that suffers from this malaise or are there other cattle growers who find it the same?

I think $1.60 calves would start to make a difference . . . . :)
 
burnt said:
Agriculture is in bad shape all around. We have, in general, bought into the false philosophy that bigger is better and keep up your profits by producing more at a smaller margin.

All this has done is produce a huge, guaranteed supply of unusually superior product for the humongous multinational corporations who make their margin regardless of price.

What I could never figure out is how a farmer can expect to make money on 1000 of something if he or she couldn't make money on 100. And if I hear the word "efficiency" one more time . . .
Click to expand...

I often wonder if part of the answer may lie in a quota system similar to what the dairy guys have. I suppose we (Canada) couldn't do it alone, or the trade ramifications would be signifigant.
 
Silver said:
burnt said:
Agriculture is in bad shape all around. We have, in general, bought into the false philosophy that bigger is better and keep up your profits by producing more at a smaller margin.

All this has done is produce a huge, guaranteed supply of unusually superior product for the humongous multinational corporations who make their margin regardless of price.

What I could never figure out is how a farmer can expect to make money on 1000 of something if he or she couldn't make money on 100. And if I hear the word "efficiency" one more time . . .
Click to expand...

I often wonder if part of the answer may lie in a quota system similar to what the dairy guys have. I suppose we (Canada) couldn't do it alone, or the trade ramifications would be signifigant.
Click to expand...

I just had this exact conversation with a real "expert" and I mean that in the most respect ever. He said that beef farmers are too stubborn and too stupid to ever agree to it . :wink: I think a "quota" like sysytem would be our salvation right now ,it would support real supply and demand. The best would survive and the crappy would fall by the wayside, do or die....

Burnt, I want to read your article as well and no it is not just you that feels this way.
 

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