10/09/06 Analysis says CWT boosts milk prices

Washington Ag October 9, 2006 An independent economic analysis of the impact of Cooperatives Working Together has found the dairy self-help program has raised farmers' prices by at least 40 cents per hundredweight since it began operation in 2003. The analysis was done by Dr. Scott Brown of the University of Missouri, a nationally known policy expert. Brown who was himself skeptical about the long term effects of CWT, examined the program's three herd retirements plus its ongoing export assistance program. And in addition to adding 40 cents a hundredweight to farmer milk prices; Brown: "In fact when I look back at what this has meant for 2006, I would say the combination of herd retirements and export program kept milk prices from being even lower than we have seen in 2006. Adding 60 cents to the bottom line making milk prices higher than what would have been some very low milk prices." Participants in CWT assess themselves to pay for the program and Brown says they are getting a good return on that investment. Brown: "And roughly one can think about that as an eight-to-one return on a producer's investment in that program." In July CWT members began collecting ten cents a hundredweight, a five cent increase, to help ensure additional herd retirement efforts and export assistance. I'm Bob Hoff.