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CWT is at it again: http://www.cwt.coop/sites/default/files/news_releases/CWT-export-assistance-bids-080910.pdf
ARLINGTON, VA – Cooperatives Working Together (CWT) accepted three bids from Dairy Farmers of America and three bids from Land O’Lakes for a total of 644 metric tons (1.4 million pounds) of butter and anhydrous milkfat (AMF) to Europe, the Caribbean, and Central America. This product will be delivered August through December 2010.
Since CWT reactivated the Export Assistance program in March 18, 2010, it has assisted members in making export sales of Cheddar, Monterey Jack, and Gouda cheese totaling 18,616 metric tons (41.0 million pounds) to 23 countries on four continents. In addition, sales of butter and AMF totaling 11,237 metric tons (24.8 million pounds) have been made to nine countries on three continents.
Dairy economist models are, in my opinion, seriously flawed. In part because the models are never able to deal with complexity.
However, the models are consistent and the model shows exports return poorly. So, why export?
In a dairy market update, IDFA economic analyst Rob Blaufuss said that between March and May 2010 cheese exports were 83 per cent above the figures for last year, while butter and nonfat dry milk exports increased on 2009 by 189 percent and 72 percent, respectively.