Frequently Asked Questions About CWT
- What is CWT?
- Why isn't CWT a government-mandated program?
- Who is investing in CWT?
- Who serves on the Committee managing the CWT program?
- How has every dairy farmer benefited from CWT?
- How does the Herd Retirement program work?
- How does the Export Assistance program work?
What is CWT?
CWT (Cooperatives Working Together) is a voluntary, producer-funded national program developed by National Milk Producers Federation (NMPF) to strengthen and stabilize milk prices by taking actions to balance milk supply with demand. CWT was designed by dairy farmers for the benefit of dairy farmers. Launched in July 2003, CWT is, in effect, a federation of cooperatives and producers formed in accordance with the Capper-Volstead Act and acting in association for the specific purpose of achieving strong and stable milk prices. CWT operates as an entity within the NMPF structure so that administrative costs and direct program (operational) costs can be kept to an absolute minimum.
Why isn't CWT a government-mandated program?
There is no government involvement in CWT at any level. This allows CWT to respond quickly to changes in market conditions without having to go through a lengthy legislative or bureaucratic process. A government-mandated program would not be able to assist member cooperatives in expanding overseas markets for U.S. dairy products because of trade agreement restrictions.
Who is investing in CWT?
CWT is supported by dairy farmers producing nearly 70% of the nation's milk. This includes the producer-owners of 35 cooperatives, as well as nearly 400 independent individual dairy farmers in nearly every state. (To see the cooperatives fully funding CWT, visit this page listing CWT Members.) CWT members invest 10¢ per hundredweight in this program to achieve higher returns in the marketplace for their products.
Who serves on the Committee managing the CWT program?
The CWT Committee consists of the NMPF Board of Directors, representatives from each participating cooperative that is not a member of NMPF, and representatives for independent producer members of CWT. Representation on the CWT Committee for these various groups of producers is based on milk production volume. The CWT Committee establishes policies and oversees the CWT's programs and activities.
How has every dairy farmer benefited from CWT?
CWT utilizes two programs to achieve its goal of strengthening and stabilizing milk prices — the Herd Retirement program and the Export Assistance program. CWT has conducted six herd retirements since its inception and has retired 276,000 cows representing 5.2 billion pounds of annual milk production. Under CWT's Export Assistance Program, CWT has helped to export 186 million pounds of cheese, butter, anhydrous milk fat, and whole milk powder to 56 countries on four continents, the equivalent of more than 4 billion pounds of milk. In total, CWT's programs have put $5.3 billion (an average of 56¢ per hundredweight) in dairy farmers' pockets. Visit CWT's Impact to see how CWT has helped raise and stabilize all dairy farmers' milk prices.
How does the Herd Retirement program work?
Detailed information on the Herd Retirement program.