Monday, October 15, 2018
 CWT Extends Export Subsidies to SMP  

 CWT formally revised its operating procedures for its Export Assistance program reflecting the addition of skim milk powder (SMP), standardized to 34% protein content, and butter blends containing at least 75% butterfat. The CWT Committee had approved the addition of SMP and butter blends to the list of products eligible for export assistance when it met on October 27, 2008.

"The demand for U.S. dairy products overseas is growing," said Jerry Kozak, President and CEO of National Milk Producers Federation, which operates the CWT program. "Adding skim milk powder is a logical extension of the CWT Export Assistance program. It is a $2.3 billion market that consumes 2.4 billion pounds of product annually. SMP product value ranks third behind cheese, and whole milk powder."

Kozak said CWT is not intended to replace the federal Dairy Product Price Support Program (DPPSP), which supports the purchase price of nonfat dry milk powder (NDM) at 80 cents per pound. Rather, it is intended to stimulate, promote and assist the export of skim milk powder standardized to 34% protein, which is not eligible for sale to the USDA’s Commodity Credit Corporation under the DPPSP. CWT will take into consideration the product support price level of NDM in determining the appropriate level of export assistance to provide for SMP.

Posted on Thursday, November 20, 2008 (Archive on Thursday, November 27, 2008)
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