Smaller Cow Herd Retirement Planned

Cooperatives Working Together (CWT) accepted 194 bids in July in its latest herd retirement, representing 34,442 cows and over 653 million pounds of milk.

CWT states its three herd retirements in 2009 that removed a total of 200,000 cows and four billion pounds of milk were the primary reason why U.S. cow numbers dropped steeply last year, “but cow numbers have leveled off since the end of the year,” said Jerry Kozak, president and chief executive officer of the National Milk Producers Federation, which administers CWT. “This latest herd retirement will push cow numbers lower still, which is what our industry needs to better align supply and demand.”

Once CWT auditors approve the herds accepted during the bid process, farmers have 15 days in which to send their animals to slaughter. Producers will be paid in two installments: 90 percent of the amount bid times the producer’s 12 months of milk production when it is verified that all cows have gone to slaughter, and the remaining 10 percent plus interest at the end of 12 months following the farm audit, if both the producer and his dairy facility – whether owned or leased – do not become involved in the commercial production and marketing of milk during that period.

August 2010 RENDER | back