10/30/08 2nd CWT herd reduction this year

Milk prices have come down. So to have the prices on corn, feed and fuel. Yet dairy producers' margins are still under stress. GALEN "And we expect that situation to be even worse heading into 2009." That's Chris Galen with the National Milk Producers Federation who says that is why Cooperative Working Together, CWT, is conducting its second dairy herd retirement program this year in an attempt to increase prices for 2009. GALEN -"And anyone who wants to plunge in who is a member of CWT, or whose co-op is a dues paying member as of 2008, is able to send in a bid. The window of opportunity is another four weeks. You have until November 24th to submit bids." On the futures market Class III milk prices fell from the 18 to 19 dollar range to the current 14 dollars. There is no set target as to how many cows or pounds of milk will be removed from the national production in this round. This is the sixth time CWT has offered a herd retirement option since the summer of 2003. This round offers producers the option of including all their bred heifers for a flat fee of 12 hundred 25 dollars for animal. Voice of Idaho Agriculture Bill Scott