US dairy farmers are to try to reduce milk production by 1.2bn lbs through a voluntary programme that includes herd retirements and export promotion, according to an industry group.

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The National Milk Producers Federation said farmers producing more than 70% of US milk have agreed to join the Cooperatives Working Together programme, which was created as a response to low milk prices, reported Reuters.

Money raised by the programme will be spent on paying farmers to retire dairy cows, incentives to scale back milk production and promoting US cheese and butter exports.

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