Cooperatives Working Together announced today that it will conduct its second herd-retirement of 2009. In order to have a more immediate impact, CWT is shortening the time frame for producers to submit bids. A maximum bid level is also being announced for this round.
“With the ongoing financial pressure on dairy farmers, and because the vast majority of farmers are familiar with CWT’s herd-retirement program and how it works, we shortened the bidding window to two weeks,” says Jerry Kozak, president and chief executive officer of the National Milk Producers Federation, which manages CWT.
“Carrying out a second herd-retirement right on the heels of the largest-ever herd-retirement should give us a double-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,” Kozak adds.
As has been the case in recent herd-retirements, in addition to submitting bids for their milk herds, participating farmers will have the option of offering all of their bred heifers, at a flat price of $700 per animal.
With this eighth herd-retirement, CWT is reinstating the rule that members of CWT whose herds were retired in any of the seven previous herd-retirement rounds are not allowed to bid again.
For more, see the release from Cooperatives Working Together.