(click on image to enlarge)
Above is the latest from CWT. Notice the quantity 39 million pounds?
Block Cheddar on the Chicago Mercantile Exchange has averaged $1.39 per pound, March 2010 through June 2010.
CWT enhances the deal at $1.40 per pound.
World Cheddar price has averaged $1.78 per pound in the same time period.
Do the math. Easy money.
Excuse my ignorance but does this mean they get the CME and the $1.40?
ReplyDeleteI cannot find the best word to describe CWT other than it is an asinine program!!! The current CWT program is a complete waste of farmer's money. What other industry "extracts" money from member businesses for the sole reason of eliminating each other? There isn't an entity, like a CWT, collecting money from Walmart, Kmart and target simply to buy one of them out? Only the dairy industry. If CWT had used every penny it's collected, from day one, I suspect dairy farmers could have bought a significant share of either Deans Foods and/or Kraft. At least collectively, dairy producers would be "in the tent" and I submit "we" would've have a greater voice in pricing our products!!. CWT in it's current form needs to be stopped immediately. What will CWT do when there's just ONE dairy farm left??? Ponder that for a moment. Thank you for allowing me to vent.
ReplyDeleteI find this to be not ironic that DFA got the bid. It is wide known that most "co-ops" that have agreed to be part of the CWT idea are looking to opt out, and that this fall is their time frame to opt out. this purchse is due for delivery in september... this would make you beleive there is a reason behind this... hold dfa, and hold 17% (dfa figure) of the dairy herds into CWT. now from their letter, it shows that the export assistance is to move "storaged" prodcut and to eliminate a problem of to much in cold storage. its July 8th. if this was to move cold storage, delivery would be by end of July. a move like that would show that product was infact sucked out of inventory. this proves to me that product will me massed produced(possible utilization of MPC'S) and then delivered. this is crap, dfa should be ashamed. i however know that this will be a bragging point to them at their bi-annual meetings that get started rather soon.
ReplyDeletecongratulations dfa, and a bigger congratulations CWT. you again will find a way to screw the man that has been working for nothing for 4 of the last 6 yrs.
you have to ask yourself(if your in the east cost heat wave) why? why do i do this, why do i sweat my heart out every day to make great feed for in the end to not be able to afford to pay the fuel bill. im sorry folks, i know htere are no other jobs really available, but putting yourself through hell someday gets old. working over a holiday that the rest of the country takes off, and loosing money doing so begins to get old.
change will come, right or wrong. unfortunately, it may just be to late for too many ... mentally.
Jake Jones
'What other industry "extracts" money from member businesses for the sole reason of eliminating each other?'
ReplyDeleteCWT is optional so extraction might be a strong word.
When has anyone seen CWT "impact producer milk prices"? They have assisted in the sale of 39 million lbs and the milk price didn't notice. In the last three days CME cheese has gone up six and a half cents on NO sales and each time that happens even though there were NO sales the milk price goes up. CWT is now and has always been a legalized theft of farm money.
ReplyDelete12:11 eliminate block voting and let's see how many co-op members would vote for participation in cwt. extraction isn't strong enough.
ReplyDeleteThe person that said CWT is "optional" may never have milked cows for a living. When we signed up with DFA in Upstate NY (that was a huge mistake) we did not have the OPTION of whether money was taken out of our milkcheck for CWT.
ReplyDeleteIt's this simple - these monolithic and impenetrable dairy coops, like DFA, and it's "pet program" - CWT program is destroying OUR dairy industry. They're corrupt, plain and simple. Therefore, either we dismantle them (soon) or they we eventually dismantle "us". And so far they are doing a job of that!
Our dying industry needs radically new ideas that will give dairy farmers more DIRECT influence (and perhaps more control) over dairy pricing policies, decisions and so-called markets. The dairy academics, dairy coop/processing excutives and politicians simply don't give a damn. They're only interested in preserving their six figure incomes and bonuses - on our backs!
We need to cooperate and organize. We must find a way to "redirect" the monies farmers are paying in to CWT to accomplish that. I strongy believe that with farmers (and leaders) like John Bunting on our side we can come up with something!!!
We're the bunch that's known for fixing just about anything on our own farms so we should be able to fix this.
NO MORE CWT. This should be our rallying cry.
At the risk of beating a dead horse, below is the total revenue CWT reported for the calendar year 2009 :
ReplyDeleteTotal Revenue $ 219,609,684
Now if you were to take $219 million dollars and divide that by $11 (the 7/9/10 share price of Deans Foods) you get nearly 20 million shares of Dean Foods common stock!!!!!!
Dean currently has about 181 million shares outstanding. So had CWT used the monies they collected in 2009 to BUY Deans Food stock (rather than buying out struggling dairy farmers) dairy farmers COLLECTIVELY, could've owned nearly 11% of Deans Foods. In just ONE year!!!!
After a couple of years of this strategy "we" could have demanded a seat on the Board of Directors of Deans Foods. Then we would be literally in the tent.
I apologize for the numerous blogs on this issue but I wanted to be clear on where I am going with this line of thinking.
Thank you.