July 11, 2009

US dairy group announces second herd-buyout programme of 2009

The US dairy group Cooperatives Working Together (CWT) announced Friday (Jul 10) that it plans a second herd-buyout programme for 2009.

In a release, the group said it was shortening the time frame for producers to submit bids in order to get a more immediate market effect. It also established a maximum acceptable bid for this buyout. Under the programme, producers pool their money to buy the herd for slaughter.

"To expedite and simplify the bidding process, CWT will consider bids up to, but not to exceed US$5.25 per hundredweight," said Jerry Kozak, president of the National Milk Producers Federation, which manages CWT, in the release.

Producers must bid on a per-hundredweight basis, and CWT will continue to review and accept bids beginning from the lowest bids received and moving up toward the maximum level, the release said.

On July 2, CWT announced the end of the last herd-buyout programme with the removal of 101,040 cows from the nation's herd.