Cheese Market News, Volume 36, February 19, 2016, Number 5
16
© 2016 CHEESE MARKET NEWS ® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) ‘Wood in cheese’ media frenzy spotlights fraud By Alyssa Mitchell MADISON, Wis. — New media attention this week on the issue of adulterated cheese has the industry on the defense over the integrity of its products. Several news outlets this week reported that wood pulp may be included in grated Parmesan cheese available for purchase at various retailers. Bloomberg Business reports that it hired an independent labo- ratory to test store-bought grated cheese for wood pulp content. A small amount — 2 to 4 percent — is allowed in grated cheese as an additive to keep the product from clumping and is listed on ingredient labels as cellulose. Cellulose is recognized as safe by FDA and is used in a wide variety of packaged food products. USDA projects long-term rise in demand for dairy exports WASHINGTON — Domestic demand for cheese and butter, as well as U.S. exports of dairy products, are projected to rise over the next decade, according to a long-term projections report released this week by USDA. “USDA Agricultural Projections to 2025” notes that over the next several years, the agricultural sector will continue to adjust to lower prices for most farm commodities. Long-run developments for global agriculture reflect steady world economic growth and continued global demand for biofuel feedstocks, factors which combine to support longer run increases in consumption, trade and prices of agricultural products. Although a stronger U.S. dollar somewhat constrains growth in U.S. agricultural exports, USDA says the United States will remain competitive in global agricultural markets. U.S. export values are projected to decline in 2015-2016 and farm cash receipts fall in 2015-2017 before both grow over the rest of the projection period. Net farm income generally increases over the projection period. Milk production is projected to continue to rise, reaching 256.2 billion pounds in 2025, USDA says. The long-run upward trend con- tinues in output per cow, also projected to increase through 2025, reflecting continued technological and genetic developments as well as efficiency gains from consolidation. Strong demand both domestically and for U.S. dairy product ex- ports, combined with moderate gains in projected feed costs, provide favorable returns to dairy producers that also encourage a general expansion of milk cow numbers. USDA projects milk cow numbers to decrease in 2016, remain about even through 2020, and then rise through the remainder of the projection period to reach 9.35 million head in 2025. Rising milk prices after 2018 and feed costs that are lower than in recent Volume 36 February 19, 2016 Number 5 By Alyssa Mitchell WISCONSIN DELLS, Wis. — Not all businesses have an official Human Resources (HR) department. In the dairy industry, company sizes range from small, family-owned busi- nesses to large international players. But in an ever-evolving regulatory environment, it’s paramount that companies of all sizes keep diligent records and clearly communicate poli- cies to employees. Experts in HR, business and employment law recently shared key strategies for com- panies to have their bases cov- ered when it comes to the law and successful HR practices at a meeting with members of Experts share key strategies to develop effective HR programs the Wisconsin Specialty Cheese Institute (WSCI) in Wisconsin Dells. •Employee handbook and personnel files Mary Felton, founder and president of HR Business Partners LLC, stressed the im- portance of having an employee handbook and outlined key as- pects that should be included. Felton notes that in today’s legal landscape, the U.S. De- partment of Labor (DOL) is increasingly conducting audits of companies’ recordkeeping and personnel files, including hours worked, safety issues, paid time off and more. “They can audit anything,” she says. Felton notes that No. 1 rule for companies is to know their boundaries as an employer and know when to call in the ex- perts, from issues ranging from health care costs to workers’ compensation to recruitment policies. Regarding personnel files, Felton notes they should be kept in a locked, secured and fireproof cabinet. She suggests employers set up files into three categories — personnel, confi- dential and medical/benefits. Personnel files may in- clude employee applications (without their social security number), offer letter, job de- scription, emergency contact, verification of receipt of hand- book, performance reviews, dis- ciplinary actions and training records. Employees by law are permitted to view this file upon request, Felton notes. In the confidential file, employers can keep employ- ees’ social security numbers, equal opportunity employment records, informal performance notes or investigation notes. Medical record and benefit files may include doctors’ notes, Family and Medical Leave Act (FMLA) information and re- cords, benefit forms, physical and drug tests. Finally, some records, such as Form I-9 (immigration) audits, should be kept in a binder where they are easily ac- cessible for specific purposes, Felton says. Various postings and sig- nage related to employment laws also are required to be posted in a public area, she notes. Felton also stresses the im- portance of having an employee handbook. She notes this is a legal document that can be used in court, and she recom- mends that a company write its own rather than borrowing language from another. The handbook should be practical, she notes. “Say what you do, and do what you say,” she says. Felton suggests leaving some wiggle room by using permissive language such as “employer may” versus “will,” and “we will strive to” versus “we will.” “Don’t lock yourself in,” she cautions, recommending companies also use language including “management re- serves the right to...” for various policies. It is particularly important for companies to review their sexual harassment policy with employees, and to get a signed and dated acknowledgement that policies have been covered with each employee, Felton says. Signed copies should be kept in employees’ personnel files. • The generation gap In addition to having the proper files and policies in place, with various genera- tions collaborating in today’s workforce, it helps to have an understanding of varying value systems across different age groups, notes Andrew C. Marris, Grassland Dairy Products acquires Alcam Creamery Turn to HR, page 12 D Turn to FRAUD, page 15 D By Alyssa Mitchell RICHLAND CENTER, Wis. — Grassland Dairy Products Inc., based in Greenwood, Wisconsin, has acquired Alcam Creamery Co., Rich- land Center, Wisconsin. The transaction was finalized Feb. 12. Employees at the Alcam plant will stay on, and the plant will remain under the Turn to ALCAM, page 15 D Turn to OUTLOOK, page 12 D Scan this code for breaking news and the latest markets! ✦ Guest column: ‘Down’ may not be over yet. For details, see page 4. ✦ Global Dairy Trade prices weaken further. For details, see page 5. ✦ World Championship Cheese Contest draws record number of entries. For details, see page 7. ✦ R&G Cheese Makers sets March completion date for new creamery. For details, see page 9. INSIDE
description
Cheese Market News, Volume 36, February 19, 2016, Number 5
Transcript of Cheese Market News, Volume 36, February 19, 2016, Number 5
© 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected])
‘Wood in cheese’ media frenzy spotlights fraudBy Alyssa Mitchell
MADISON, Wis. — New media attention this week on the issue of adulterated cheese has the industry on the defense over the integrity of its products.
Several news outlets this week reported that wood pulp may be included in grated Parmesan cheese available for purchase at various retailers.
Bloomberg Business reports that it hired an independent labo-ratory to test store-bought grated cheese for wood pulp content. A small amount — 2 to 4 percent — is allowed in grated cheese as an additive to keep the product from clumping and is listed on ingredient labels as cellulose. Cellulose is recognized as safe by FDA and is used in a wide variety of packaged food products.
USDA projects long-term rise in demand for dairy exports WASHINGTON — Domestic demand for cheese and butter, as well as U.S. exports of dairy products, are projected to rise over the next decade, according to a long-term projections report released this week by USDA.
“USDA Agricultural Projections to 2025” notes that over the next several years, the agricultural sector will continue to adjust to lower prices for most farm commodities. Long-run developments for global agriculture refl ect steady world economic growth and continued global demand for biofuel feedstocks, factors which combine to support longer run increases in consumption, trade and prices of agricultural products.
Although a stronger U.S. dollar somewhat constrains growth in U.S. agricultural exports, USDA says the United States will remain competitive in global agricultural markets. U.S. export values are projected to decline in 2015-2016 and farm cash receipts fall in 2015-2017 before both grow over the rest of the projection period. Net farm income generally increases over the projection period.
Milk production is projected to continue to rise, reaching 256.2 billion pounds in 2025, USDA says. The long-run upward trend con-tinues in output per cow, also projected to increase through 2025, refl ecting continued technological and genetic developments as well as effi ciency gains from consolidation.
Strong demand both domestically and for U.S. dairy product ex-ports, combined with moderate gains in projected feed costs, provide favorable returns to dairy producers that also encourage a general expansion of milk cow numbers.
USDA projects milk cow numbers to decrease in 2016, remain about even through 2020, and then rise through the remainder of the projection period to reach 9.35 million head in 2025. Rising milk prices after 2018 and feed costs that are lower than in recent
Volume 36 February 19, 2016 Number 5
By Alyssa Mitchell
WISCONSIN DELLS, Wis. — Not all businesses have an offi cial Human Resources (HR) department. In the dairy industry, company sizes range from small, family-owned busi-nesses to large international players. But in an ever-evolving regulatory environment, it’s paramount that companies of all sizes keep diligent records and clearly communicate poli-cies to employees.
Experts in HR, business and employment law recently shared key strategies for com-panies to have their bases cov-ered when it comes to the law and successful HR practices at a meeting with members of
Experts share key strategies to develop effective HR programs
the Wisconsin Specialty Cheese Institute (WSCI) in Wisconsin Dells.•Employee handbook and personnel fi les
Mary Felton, founder and president of HR Business Partners LLC, stressed the im-portance of having an employee handbook and outlined key as-pects that should be included.
Felton notes that in today’s legal landscape, the U.S. De-partment of Labor (DOL) is increasingly conducting audits of companies’ recordkeeping and personnel fi les, including hours worked, safety issues, paid time off and more.
“They can audit anything,” she says.
Felton notes that No. 1 rule for companies is to know their boundaries as an employer and know when to call in the ex-perts, from issues ranging from health care costs to workers’ compensation to recruitment policies.
Regarding personnel fi les, Felton notes they should be kept in a locked, secured and fi reproof cabinet. She suggests employers set up fi les into three categories — personnel, confi -dential and medical/benefi ts.
Personnel files may in-clude employee applications
(without their social security number), offer letter, job de-scription, emergency contact, verifi cation of receipt of hand-book, performance reviews, dis-ciplinary actions and training records. Employees by law are permitted to view this fi le upon request, Felton notes.
In the confidential file, employers can keep employ-ees’ social security numbers, equal opportunity employment records, informal performance notes or investigation notes.
Medical record and benefi t fi les may include doctors’ notes, Family and Medical Leave Act (FMLA) information and re-cords, benefi t forms, physical and drug tests.
Finally, some records, such as Form I-9 (immigration) audits, should be kept in a binder where they are easily ac-cessible for specifi c purposes, Felton says.
Various postings and sig-nage related to employment laws also are required to be posted in a public area, she notes.
Felton also stresses the im-portance of having an employee handbook. She notes this is a legal document that can be used in court, and she recom-mends that a company write
its own rather than borrowing language from another.
The handbook should be practical, she notes.
“Say what you do, and do what you say,” she says.
Felton suggests leaving some wiggle room by using permissive language such as “employer may” versus “will,” and “we will strive to” versus “we will.”
“Don’t lock yourself in,” she cautions, recommending companies also use language including “management re-serves the right to...” for various policies.
It is particularly important for companies to review their sexual harassment policy with employees, and to get a signed and dated acknowledgement that policies have been covered with each employee, Felton says. Signed copies should be kept in employees’ personnel fi les.• The generation gap
In addition to having the proper fi les and policies in place, with various genera-tions collaborating in today’s workforce, it helps to have an understanding of varying value systems across different age groups, notes Andrew C. Marris,
Grassland Dairy Products acquires Alcam Creamery
Turn to HR, page 12
Turn to FRAUD, page 15
By Alyssa Mitchell
RICHLAND CENTER, Wis. — Grassland Dairy Products Inc., based in Greenwood, Wisconsin, has acquired Alcam Creamery Co., Rich-land Center, Wisconsin. The transaction was fi nalized Feb. 12.
Employees at the Alcam plant will stay on, and the plant will remain under the
Turn to ALCAM, page 15 Turn to OUTLOOK, page 12
Scan this code
for breaking
news and the
latest markets!
✦ Guest column: ‘Down’ may not be over yet. For details, see page 4.
✦ Global Dairy Trade prices weaken further. For details, see page 5.
✦ World Championship Cheese Contest draws record number of entries. For details, see page 7.
✦ R&G Cheese Makers sets March completion date for new creamery. For details, see page 9.
INSIDE
© 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected])
MARKET INDICATORS
2 CHEESE MARKET NEWS® — February 19, 2016
DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions.
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Dry Products* February 19, 2016
DRY BUTTERMILK(FOB)Central & East: $.7400-$.8600(+1/2).(FOB) West: $.7600(-2)-$.8500; mostly $.8000-$.8200.
EDIBLE LACTOSE(FOB)Central and West: $.1800-$.3100; mostly $.1800-$.2500.
NONFAT DRY MILKCentral & East: low/medium heat $.7400(+3)-$.8500; mostly $.7600(+1)-$.8200. high heat $.9500(+5)-$1.1500.West: low/medium heat $.6825(+3/4)-$.8100(-1); mostly $.6950-$.7600. high heat $.8400(+1 1/2)-$1.0950.Calif. manufacturing plants: extra grade/grade A weighted ave. $.7767(-.0030) based on 7,758,298 lbs.
WHOLE MILK POWDER (National): $1.0000-$1.5200.
WHEY POWDERCentral: nonhygroscopic $.2000(+2)-$.2750; mostly $.2250-$.2600(+1/2).West: nonhygroscopic $.2300(+1)-$.3350; mostly $.2300-$.2700.(FOB) Northeast: extra grade/grade A $.2475(+2 1/4)-$.2800(+1/2).
ANIMAL FEED WHEY (Central): Whey spray milk replacer $.1400-$.2150.
WHEY PROTEIN CONCENTRATE (34 percent): $.5500(+8)-$.6900; mostly $.5500(+2)-$.6100.
CASEIN: Rennet $2.5000-$3.3500; Acid $2.7300-$3.5000.
*Source: USDA’s Dairy Market News
Total Contracts Traded/Open Interest Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.*Total Contracts Traded/Open Interest reflect additional months not included in this chart.
FEB16MAR16APR16MAY16JUN16JUL16AUG16SEP16OCT16NOV16DEC16JAN17FEB17MAR17APR17MAY17JUN17
CHEESE FUTURES* for the week ending February 18, 2016 (Listings for each day by month, settling price and open interest)
Fri., Feb. 12 Mon., Feb. 15 Tues., Feb. 16 Wed., Feb. 17 Thurs., Feb. 18
1.5221.5291.5261.5421.5781.6211.6601.6831.7011.6971.6971.6831.6811.6801.7001.7001.700
3,9353,8763,3003,2752,9972,6022,3992,2691,9372,1341,992
139131106
373737
624/31,240
1.5201.5251.5191.5331.5681.6081.6501.6751.6951.6971.6971.6831.6821.6821.7001.7001.700
3,9353,8763,2743,3063,0022,6172,4282,2691,9542,1742,008
139145125
373737
591/31,400
1.5221.5261.5241.5341.5721.6111.6511.6791.7001.7001.7001.6841.6821.6821.6901.7001.700
3,9393,8773,2743,3062,9822,6212,4372,2771,9702,1952,032
167175155
766161
439/31,662
1.5251.5401.5411.5471.5851.6241.6641.6901.7031.7011.7001.6821.6801.6981.7001.7001.700
3,9293,8753,3233,2663,0142,5392,3332,2291,9102,0921,971
1279471373737
325/30,921
Markets Closed
Total Contracts Traded/Open Interest
FEB16MAR16APR16MAY16JUN16JUL16AUG16SEP16OCT16NOV16DEC16JAN17FEB17MAR17
DRY WHEY FUTURES* for the week ended February 18, 2016 (Listings for each day by month, settling price and open interest)
Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.*Total Contracts Traded/Open Interest reflect additional months not included in this chart.
Fri., Feb. 12 Mon., Feb. 15 Tues., Feb. 16 Wed., Feb. 17 Thurs., Feb. 1824.7024.4825.4025.9025.5826.0326.1327.0028.0028.5329.5029.7830.5027.50
685689555535536395389366319268279
262527
6/5,198
24.6524.4825.4025.9025.7526.0326.1327.0028.0028.7829.5029.7830.5027.50
680689555535536401395372327277287
262527
53/5,236
24.7524.7525.5026.0025.7526.4026.4027.0028.0028.7829.5029.7830.5027.50
680692566544544414407382337287297
262527
114/5,332
24.7024.4825.4025.9025.5826.0326.1327.0028.0028.5329.5029.7830.5027.50
688689555535536394388365319268279
262527
1/5,198
Markets Closed
Monday Tuesday Wednesday Thursday Friday
Chicago Mercantile Exchange
Feb. 15 Feb. 16 Feb. 17 Feb. 18 Feb. 19
Weekly average (Feb. 16-19): Barrels: $1.4706(-.0004); 40-lb. Blocks: $1.4894(+.0074).Weekly ave. one year ago (Feb. 16-20, 2015): Barrels: $1.4850; 40-lb. Blocks: $1.5413.
Cheese BarrelsPriceChange
Cheese 40-lb. BlocksPriceChange
Grade A NDMPriceChange
Weekly average (Feb. 16-19): Grade A: $0.7444(-.0011).
Grade AA ButterPriceChange
Class II Cream (Major Northeast Cities): $2.4507(-.0166)–$2.6638(-.0181).
Weekly average (Feb. 16-19): Grade AA: $2.0506(-.0804).
$2.0425 -3/4
Sign up for our daily fax or email service for just $104 a year. Call us at 608-288-9090.
Cash prices for the week ended February 19, 2016
$1.4600 -2
$1.4900 NC
$0.7575 +2
$2.0500 -6
$1.4725 +1/4
$1.4900NC
$2.0550 +1 1/4
$0.7350 -1
Markets Closed
Markets Closed
$1.4700 +1
$1.4900NC
$0.7450 -1 1/4
Markets Closed
$1.4800 +3/4
$1.4875-1/4
$0.7400 +1/2
$2.0550 NC
(These data, which include government stocks and are reported in thousands of pounds, are based on reports from a limited sample of cold storage centers across the country. This chart is designed to help the dairy industry see the trends in cold storage between the release of the National Agricultural Statistics Service’s monthly cold storage reports.)
ButterCheese
18,32792,771
+1,914+944
7,24198,171
+3,831+808
+11,086-5,400
+26+1
Weekly Cold Storage Holdings February 15, 2016 On hand Week Change since Feb. 1 Last Year Monday Change Pounds Percent Pounds Change
CLASS III PRICE (Dollars per hundredweight, 3.5% butterfat test)
YEAR2010201120122013201420152016
JAN14.5013.4817.0518.1421.1516.1813.72
FEB 14.2817.0016.0617.2523.3515.46
MAR12.7819.4015.7216.9323.3315.56
APR12.9216.8715.7217.5924.3115.81
MAY13.3816.5215.2318.5222.5716.19
JUN13.6219.1115.6318.0221.3616.72
JUL 13.7421.3916.6817.3821.6016.33
AUG15.1821.6717.7317.9122.2516.27
SEP16.2619.0719.0018.1424.6015.82
OCT16.9418.0321.02 18.22 23.82 15.46
NOV15.4419.0720.8318.8321.9415.30
DEC13.8318.7718.6618.9517.8214.44
© 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected])
February 19, 2016 — CHEESE MARKET NEWS® 3
DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions.
For more information please visit www.devilletechnologies.com
MARKET INDICATORS
Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. *Total Contracts Traded/Open Interest reflect additional months not included in this chart.
Total Contracts Traded/Open Interest
Cash-Settled NDM*
FEB16MAR16APR16MAY16JUN16JUL16AUG16SEP16OCT16
FEB16MAR16APR16MAY16JUN16JUL16AUG16SEP16OCT16NOV16
Total Contracts Traded/Open Interest
Fri., Feb. 12 Mon., Feb. 15 Tues., Feb. 16 Wed., Feb. 17 Thurs., Feb. 18
Total Contracts Traded/Open Interest
FEB16MAR16APR16MAY16JUN16JUL16AUG16SEP16OCT16NOV16DEC16JAN17FEB17MAR17APR17
Class III Milk*
Total Contracts Traded/Open Interest
Class IV Milk*
FEB16MAR16APR16MAY16JUN16JUL16AUG16SEP16OCT16NOV16DEC16
CME FUTURES for the week ended February 18, 2016
Fri., Feb. 12 Mon., Feb. 15 Tues., Feb. 16 Wed., Feb. 17 Thurs., Feb. 18
632/32,664
13.8714.0614.1114.1914.5014.9515.2915.6415.8015.8115.8215.6015.5215.4515.53
Fri., Feb. 12 Mon., Feb. 15 Tues., Feb. 16 Wed., Feb. 17 Thurs., Feb. 18
Cash-Settled Butter*
4,4575,0064,2533,5822,7802,5222,2612,2571,7671,5901,504
273211182103
13.8413.9013.9114.1014.4514.8615.2415.5115.7215.7415.7515.6215.5615.4515.53
13.4013.7613.7613.8614.1014.2814.4314.5114.5114.6414.71
241241262279256262201168205146177
77.0080.2582.0583.0085.0085.4387.5088.0089.25
1,1121,1831,021
956754644552433323
213.73209.25211.00211.15211.00211.00212.00213.50214.13214.00
793901842664617428402361261195
1,334/33,259
3/2,468
257/7,680
267/5,570
4,5215,0224,0173,5102,7532,4392,2292,2061,7151,5461,473
274202184
96
3/2,468
Fri., Feb. 12 Mon., Feb. 15 Tues., Feb. 16 Wed., Feb. 17 Thurs., Feb. 18
4,4574,9894,3633,6322,8162,5652,3122,2941,8041,6251,541
277215182103
13.8313.8713.8514.0114.3414.7615.1515.4115.6715.7415.7515.6415.6015.4515.53
891/33,686
13.4013.7113.5713.7514.0614.1914.4014.5114.5114.5914.59
241241261278256262201168205146177
9/2,467
76.9379.5080.2581.3882.8584.1886.0087.0088.75
1,1151,1791,019
967756643544433328
161/7,687
213.00209.00207.50209.50209.25210.50212.00212.00212.00212.00
789901843674642431407373264197
268/5,649
4,3905,0074,4023,6402,8612,5732,3182,3031,8051,6331,546
277215193102
13.8413.8813.8714.0514.4114.7715.1815.4715.7515.7815.7815.7015.6515.5515.53
751/33,837
212.95209.00210.00210.40210.98210.03211.03212.40212.60212.50
781920840687658446428384271211
246/5,774
77.0079.2880.5081.7583.5085.5087.0388.0089.00
1,1151,1821,018
966766649541434329
108/7,703
13.4013.7113.5713.7514.0614.1914.4014.5114.5114.5914.59
241241261278256262201168205148177
8/2,470
13.4013.7613.7613.8614.1014.2814.4314.5114.5114.7114.71
241241262279256262201168205146177
76.7879.0079.1580.1882.0083.5085.0387.0088.00
1,1071,173
989938741642546427314
321/7,571
214.58213.25214.98214.98214.98214.00214.00215.68 215.10215.00
793890810631611428394361229189
334/5,432
Markets Closed
Markets Closed
Markets Closed
Markets Closed
Percent change versus
*Source: U.S. Department of Commerce. For index, prices during 1982-84 = 100.
Cheese & related productsDairy & related products All Food
2 years +4.9+0.7+4.1
1 year -2.7
-3.0 +0.8
6 mo. -1.0 -0.3 +0.7
January 2016 231.772220.869248.631
1 mo. +0.5 +0.0
+0.3
RETAIL PRICES (Consumer Price Index*)
Base Skim Milk Price for Class I1: Advanced Class III Skim Milk Pricing Factor: Advanced Class IV Skim Milk Pricing Factor: Advanced Butterfat Pricing Factor2: Class II Skim Milk Price: Class II Nonfat Solids Price: Two-week Product Price Averages:
Butter: Nonfat Dry Milk: Cheese: Dry Whey:
Advanced Prices and Pricing Factors
Note: The Class I price equals the Class I skim milk price times 0.965 plus the Class I butterfat price times 3.5, rounded to the nearest cent.For information only: The Class I base price is 13.78.1/ Higher of advanced Class III or IV skim milk pricing factors. The Class I skim milk price equals this price plus applicable Class I differential.2/ The Class I butterfat price equals the price plus applicable Class I differential divided by 100. Data provided by USDA
March 2016 $5.54/cwt.
$5.54/cwt.$5.35/cwt.$2.4103/lb.$6.05/cwt.$0.6722/lb.
$2.1618/lb.$0.7684/lb.$1.5158/lb.$0.2426/lb.
February 2016 $5.91/cwt.
$5.91/cwt.$5.47/cwt.$2.2678/lb.$6.17/cwt.$0.6856/lb.
$2.0442/lb.$0.7817/lb.$1.5115/lb.$0.2344/lb.
International Dairy Markets February 19, 2016
Oceania Butter: 82 percent butterfat $2,800(-100)-$3,200. Cheddar Cheese: 39 percent maximum moisture $2,500(-500)-$3,200(-50).Skim Milk Powder: 1.25 percent butterfat $1,725-$1,900.Whole Milk Powder: 26 percent butterfat $1,835(-165)-$2,100(-100).Source: Dairy Market News. Prices reported in U.S. dollars per metric ton, F.O.B. port. To convert to price per pound: divide price by 2,204.6 pounds.
Western Europe Butter: 82 percent butterfat $2,850-$3,050(-50).Butteroil: 99 percent butterfat $3,500-$3,975.Skim Milk Powder: 1.25 percent butterfat $1,700-$1,825(+25).Whole Milk Powder: 26 percent butterfat $2,100-$2,300(+50).Whey Powder: Nonhygroscopic $500-$700(-25).
National Dairy Products Sales Report
Cheese 40-lb. Blocks:
*/Revised. 1/Prices weighted by volumes reported. 2/Sales as reported by participating manufacturers. Reported in pounds. More information is available by calling AMS at 202-720-4392.
Average price1 Sales volume2
Cheese 500-lb. Barrels:Average price1
Adj. price to 38% moistureSales volume2
Moisture content Butter:
Average price1
Sales volume2 Nonfat Dry Milk:
Average price1 Sales volume2
Dry Whey:Average price1 Sales volume2
For the week ended: 1/30/16
*$1.4977*12,852,327
$1.6180$1.5420
10,360,80334.94
$2.1500 *3,596,692
$0.7712*14,387,465
$0.23859,687,056
*$1.5012 *12,481,031
$1.5799$1.5102
9,478,00235.14
$2.1720 *5,002,912
*$0.7732*17,591,439
*$0.2478*7,210,135
2/6/16 1/23/16
*$1.4966*13,623,977
$1.6387$1.5626
10,403,83134.98
*$2.1111 5,001,921
*$0.7695*14,208,322
$0.23446,940,657
$1.4958 12,942,190
$1.5797$1.5074
9,673,47135.03
$2.1514 4,916,851
$0.763115,856,830
$0.23757,297,070
2/13/16
© 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected])
4 CHEESE MARKET NEWS® — February 19, 2016
‘Down’ may not be over yet Sitting down to write this article, I did
what I suspect every well-intentioned author does: closed my computer and got up to clean out the kitchen junk drawer to clear my head. Out with the old receipts and dead batteries, in with the procrastination and hopefully some inspiring comment about the dairy markets. Of course, this is easier said than done this quiet February. With the exception of butter prices, which have fallen to early January lows recently, the dairy markets have spent the past several weeks in limbo — particularly
cheese.Calm markets don’t necessarily make
great stories. And, after this year’s Dairy Forum, it seems expectations favor a relatively stable $1.40 to $1.50 cheese market for the fi rst half of the year. That’s a pretty benign outlook, one that comes complete with a handy comment repeated several times over lately: “Buy-ers fi nd value here.”
Fair enough. I’ve used the word “value” to describe buyer behavior before. Relatively speaking, it makes sense. $1.50 cheese is a whole lot more
agreeable to most buyers than $2.00. But in quiet times like this, it’s important to remember that “value” has little meaning in the parlance of commodity trading. Just ask the energy guys.
Smart, well-informed professional oil analysts and traders who have their fi nger on the pulse of energy issues and policy saw tremendous value at $60 crude last year. And then we heard of pretty good value again at $50. Then $45 looked like a place to buy more, and $40, and then just below $40, and now — god willing — $30 crude.
As the saying goes, when they raid the house of ill-repute, the good girls and the piano player go to jail too. In other words, no one knows how far down will be once down gets started.
“Down” got started for the U.S. cheese market most recently in No-vember of last year when prices broke below the long-supported $1.60 level. Huge cheese inventories and solid milk production in cheese producing regions weighed on the market. Solid domestic demand and “value” buying underpinned the market causing what looks to be a soft landing for cheese prices. But “down” may not be over yet.
Weaker world prices (recent GDT auction posted $1.15 Cheddar average), abundant global and domestic fresh milk supplies, and a recent report from FAO that food prices are starting 2016 at
their lowest rate in more than 5 years are all a negative entrée into our spring fl ush. The export arena remains shaky and suppressed, with the latest tally from December showing cheese down 9 percent.
I’d rather see global demand increase instead of an uptick in farm bankrupt-cies in order to further stabilize prices, but that looks increasingly less likely as we move through the fi rst quarter.
This rather negative view could be wrong and should not prevent buy side hedgers from being proactive if prices make sense for your business or your customers’ business. Remember, hedgers ought to be consistent in their budget setting. They ought to be able to understand sometimes they will take hedge losses. But they shouldn’t fool themselves into believing there is some pre-determined level of “value.”
As March promotions and Easter holiday orders wind down early next month, will the bids for spot loads in the United States fi nally back away? If they do, where will we fi nd “value” next? Time will tell, but maybe we should go ahead and toss out the concept along with those old receipts and batteries. CMN
The views expressed by CMN’s guest columnists are their own opinions and do not necessarily refl ect those of Cheese Market News®.
NEWS/BUSINESS
G U E S T C O L U M N I S T C M N E x c l u s i v e !
Dave Kurzawski, a senior broker with FCStone, Chicago, contributes this column exclusively for Cheese Market News®.
Perspective:Dairy Markets
WASHINGTON — Following an an-nouncement by FDA last week that it is pausing its testing program for non-toxigenic E. coli in cheese, Michael Taylor, FDA deputy director for foods and veterinary medicine, met with raw milk cheese producers to learn more about the concerns of the American artisan cheese industry.
A listening session was held Feb. 12 at FDA’s Center for Food Safety and Applied Nutrition, where Taylor was joined by Dr. Susan Mayne, director of the Center for Food Safety and Applied Nutrition, and a number of pertinent FDA staff.
In opening remarks, Nora Weiser, executive director of the American Cheese Society (ACS), noted ACS’s de-sire to preserve and protect traditional cheesemaking practices; ensure safe, diverse products for consumers; and work with regulators to avoid undue and unnecessary barriers to growth.
She added that many allied industry groups — including regional cheese guilds, international cheese organiza-tions and other dairy industry groups — share these priorities.
Seven ACS members, all raw milk cheesemakers from around the United States, lent their voices to advance the dialogue and understanding needed to ensure continued growth of the artisan cheese sector, ACS says. Presenting cheesemakers focused on several
FDA Deputy Director Taylor meets with artisan cheesemakers to learn about concernskey issues:
• A need for transparency in rule-making, including the process that leads to policy change, as well as discussion with stakeholders to understand real-world implications early in the rule-making process.
• Collaborative engagement between regulators and cheesemakers includ-ing sharing of best practices, data and science-based information.
• Concern over the uncertain climate for raw milk cheesemakers, in particu-lar regarding potential changes to the 60-day aging rule for raw milk cheeses.
• Building trust after years of inter-actions that focused on enforcement of rules rather than enhancement of safety outcomes.
• Impact of the Food Safety Modern-ization Act (FSMA) on artisan, farmstead and specialty cheesemakers.
• Recognition of the value and visibil-ity of specialty cheese among consumers, its importance in strengthening rural economies and its role in growing the entire dairy and cheese sector. (For more on these issues, see “FDA to re-evaluate criteria for bacteria in raw milk cheese” in last week’s issue of Cheese Market News.)
Taylor notes that FDA and the cheese industry have to work together, and ACS is positioned for leadership in helping FDA understand “what works
for your product.” He adds that preventive controls are
about industry knowing what is needed and assessing what history has shown is successful.
scientifi c engagement, with technical discussions informed by what cheese-makers are doing.
ACS says those present at the listen-ing session agreed that the next step is to pull together a group of relevant stakeholders, technical experts and appropriate FDA staff to convene and discuss what preventive controls might look like for raw milk cheesemaking, and how testing can play its appropriate role in verifying controls.
“Concrete, measurable steps need to be taken on the part of FDA at every level to give the cheesemaking com-munity confi dence that regulators are operating in the spirit of FSMA,” says Jeremy Stephenson, cheesemaker at Spring Brook Farm in Vermont and a member of the ACS board of directors. “We need and value good regulation both to protect our customers as well as our collective industry.”
ACS notes that this spring it will dis-seminate a “U.S. Cheesemaker Industry Census” to producers throughout the United States. The data from this anony-mous census will provide critical infor-mation about the shape, scope, economic impact, practices, trends and challenges of the artisan and specialty cheesemak-ing industry in the United States. It also will provide benchmarking information and quantitative data to inform the industry’s interactions with FDA. CMN
“We need and value good regulation
both to protect our customers as well as
our collective industry.”
Jeremy StephensonSPRING BROOK FARM
In response to ongoing concerns over changes to the 60-day aging rule, Taylor assured the group that any change to the rule will not be a surprise to stake-holders, and that the open dialogue at the listening session is a prelude to any future rulemaking or comment process.
Mayne stresses the importance of science, and pledges that FDA will seek outside consult from academia and science in approaching artisan cheese safety.
Mayne notes she sees three steps in moving forward: dialogue, which was furthered at the listening session; data, which must be shared openly; and
© 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected])
February 19, 2016 — CHEESE MARKET NEWS® 5
NEWS/BUSINESS
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NEW YORK — Forever Cheese Inc. of Long Island City, New York, has recalled 40 cases of Mitica brand Pecorino Aged Cheese in Walnut Leaves (Pecorino Foglie di Noci) from one specifi c pro-duction code because it has the poten-tial to be contaminated with Listeria monocytogenes.
The imported cheese was shipped to distributors between Jan. 27 and Feb. 3, 2016, and was further sold to retail-ers and restaurants in California, Ohio, Pennsylvania, New York, Colorado, Ver-mont, Virginia, Florida and Connecticut.
The cheese in question is from the production code NOC15313, Lot X2537. There have been no illnesses reported
Forever Cheese recalls Mitica brand Pecorinoto date related to this potential con-tamination.
The recall was the result of a routine sampling program by Forever Cheese which revealed that the imported cheese tested positive for the bacteria. The company has ceased distribution of the affected lot as FDA and the company continue their investigation as to what caused the problem.
All distributors and retailers have been contacted in an effort to recall any remaining products in the marketplace, and consumers who have purchased the affected Mitica brand Pecorino Aged in Walnut Leaves may contact the retailer or the company for a full refund. CMN
SANTA BARBARA, Calif. — Food-Tools has launched its redesigned website. The website (www.foodtools.com) has been updated to better serve the dairy, baking and food processing industries, the company says, noting the updated website is responsive and mobile friendly, features photos and videos, includes an updated blog and is translated into English, Spanish and Chinese.
“As a global company, we want to serve the international customers in their own native languages,” says Ryan Lantieri, international sales and service manager, FoodTools.
The company says the new website better serves the food processing indus-try by bringing its information to mobile devices in a responsive web layout.
“One-third of our website visitors are coming to FoodTools.com from mobile devices,” says Doug Petrovich, vice president, FoodTools. “We knew the FoodTools website needed to be redesigned to be easily viewed on
FoodTools launches new, mobile-friendly website to better serve dairy industry
mobile screens.”The website also includes an ac-
tive blog that covers topics such as best practices, test cuts, innovative advances and industry news.
“The new website is the go-to place for everyone from small start-up bakeries to large industrial food pro-duction facilities,” says Marty Grano, president and CEO, FoodTools. “The website is organized by type of food product, i.e. cheese, pizza and more. Just click on your food product and the website will show which machines will improve the quality, consistency and effi ciency of your production line.” CMN
AUCKLAND, New Zealand — The Global Dairy Trade (GDT) price index fell 2.8 percent, and average prices for almost all commodities were lower Tuesday following the latest auction on GDT, Fonterra’s internet-based sales platform.
Anhydrous milkfat was the only com-modity to see an average price increase Tuesday, up 1.5 percent to US$3,527 per metric ton FAS ($1.5998 per pound).
The average price achieved across all contracts and contract periods, and percent decline from the last auction, for the remaining commodities is as follows:
• Butter: US$2,834 per metric ton FAS ($1.2855 per pound), down 2.3 percent.
• Buttermilk powder: US$1,496 per metric ton FAS ($0.6786 per pound), down 1.2 percent.
• Cheddar: US$2,535 per metric ton FAS ($1.1499 per pound), down 5.6 percent.
• Lactose: US$574 per metric on FAS ($0.2604 per pound), down less than 1 percent.
• Rennet casein: US$3,852 per met-ric ton FAS ($1.7473 per pound), down 11.5 percent.
• Skim milk powder: US$1,762 per metric ton FAS ($0.7992 per pound), down 1.4 percent.
• Whole milk powder: US$1,890 per metric ton FAS ($0.8573 per pound), down 3.7 percent.
The next trading event will be held March 1. For more information visit www.globaldairytrade.info. CMN
Global Dairy Trade prices weaken further
© 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected])
6 CHEESE MARKET NEWS® — February 19, 2016
NEWS/BUSINESS
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WASHINGTON — USDA Under Secre-tary for Food, Nutrition and Consumer Services Kevin Concannon this week announced a proposed rule, published in Wednesday’s Federal Register, to provide Supplemental Nutrition As-sistance Program (SNAP) participants increased access to healthy foods by requiring stores that accept SNAP to stock a wider array of food choices, including dairy products.
“USDA is committed to expanding access for SNAP participants to the types of foods that are important to a healthy diet,” Concannon says. “This proposed rule ensures that retailers who accept SNAP benefi ts offer a variety of products to support healthy choices for those participating in the program.”
The 2014 Farm Bill required USDA
USDA proposes changes to SNAP regulations with improvements for low-income Americansto develop regulations to ensure that stores that accept SNAP offer a broader variety of healthy food choices. The stocking provisions in the proposed rule would require SNAP-authorized retail establishments to offer a larger inventory and variety of healthy food options so that recipients have access to more healthy food choices. SNAP retailers would be required to offer seven varieties of qualifying foods in four staple food groups for sale on a continuous basis, along with perish-able foods in at least three of the four staple food groups. The staple foods groups are dairy products; breads and cereals; meats, poultry and fi sh; and fruits and vegetables.
In addition, the proposal calls for retailers to stock at least six units within each variety, leading to a total
of at least 168 required food items per store.
USDA says it is working to ensure that access to food retailers is not hindered for SNAP participants as a result of this rule.
The proposed rule also underscores USDA’s authority under the Food and Nutrition Act to publicly disclose information about SNAP retailers disqualifi ed or sanctioned for program violations, USDA notes. Information to be disclosed under provisions of the proposed rule would be limited to the name and address of the store, the owners’ and offi cers’ names, and the nature of the violation for which the retailer was sanctioned.
“SNAP violations are a serious
matter,” Concannon says. “Public dis-closure of this information is intended to serve as a deterrent against retailer fraud. The information would provide the public with insight into the integrity of these businesses and individuals.”
More than 260,000 retailers na-tionwide are currently authorized to redeem SNAP benefi ts, USDA says.
Comments and suggestions on the proposed rule are encouraged to help USDA determine when, where, and if any fl exibility should be pro-vided to prevent reductions in SNAP client food access. Comments are due to USDA’s Food and Nutrition Service (FNS) by April 18, 2016. FNS will make comments available pub-licly at www.regulations.gov. CMN
WASHINGTON — While the total volume of conventional dairy advertisements decreased 6 percent last week from the prior week, ads for conventional butter in 1-pound packs increased 47 percent, says USDA’s Agricultural Marketing Service (AMS) in its latest weekly National Dairy Retail Report released Feb. 12.
National conventional butter in 1-pound packs last week had a weighted average had a weighted average adver-tised price of $3.29, down from $3.32 one week earlier and $3.62 one year earlier, AMS says.
National conventional varieties of natural 8-ounce cheese blocks last week had a weighted average advertised price of $2.22, up from $2.07 one week
Total conventional dairy ad volume down, but butter up 47 percent, says USDA’s AMS
earlier but down from $2.36 one year ago, AMS says.
AMS says natural 1-pound cheese blocks last week had a weighted average advertised price of $3.95, up from $3.07 one week earlier and $3.81 one year earlier, while 2-pound cheese blocks had a weighted average advertised price of $6.04, down from $6.33 one week earlier and $8.07 one year earlier.
Meanwhile, natural 8-ounce cheese shreds last week had a weighted average advertised price of $2.22, up from $2.18 one week earlier but down from $2.47 one year earlier, AMS says, while 1-pound cheese shreds had a weighted average advertised price of $3.83, down from $3.99 one week earlier and $3.98 one year ago. CMN
AUCKLAND, New Zealand — Fon-terra has introduced an independent organic milk price linked to market returns for organic products. Start-ing in June, organic milk payments will refl ect the performance of the cooperative’s organic business.
Currently, Fonterra’s organic farm-ers receive a fi xed premium along with the conventional farmgate milk price for their organic milk production. Or-ganic farmers now can choose to move to the new payment approach or stay under the existing payment system.
“Organic milk products provide high-value returns for the coopera-tive,” says Craig Deadman, Fonterra’s global business manager for organics. “We want to grow our organics business over the long term. Linking the organic
Fonterra introduces organic milk price linked to market returns for organic products
milk price to organic market returns will help us to increase the number of organic farmers.”
Deadman adds that historically, market prices for organic milk prod-ucts have been less volatile than con-ventional milk price products, and the organic milk price has the potential to provide farmers with more certainty in operating their businesses.
He says Fonterra recently has undertaken a series of measures to make organic farming more attractive for current and prospective farmers, including the establishment of the Organic Farmers Advisory Group, a representative group of organic farmers who provide an additional feedback channel between organic farmers and Fonterra. CMN
NEW YORK — Market research fi rm BrandSpark International recently announced the 2016 BrandSpark Most Trusted Awards winners for Consumer Packaged Goods (CPG) brands.
The results were based on the an-nual BrandSpark American Shopper Study, where more than 38,000 shop-pers determined the winning brands in 106 categories across four areas: food and beverage, health and beauty, household, and kids. Conducted be-tween October and December 2015, the study recorded unaided, “top of mind” responses for categories and analyzed reasons people trusted the brands. The results were ranked based on the greatest volume of mentions.
Among food and beverage brand categories, Land O’Lakes was the most trusted in the butter category, Kraft the most trusted in the cheese category, Breyers the most trusted in the ice cream category, and Yoplait the most trusted in the yogurt category. In the non-dairy milk category, which was new this year, the Silk brand was named most trusted. In kids brands, Enfamil and Similac tied as the most
Land O’Lakes, Kraft, Yoplait among most trusted CPG brands, says recent study
trusted baby formula brands.According to the BrandSpark
American Shopper study, 68 percent of American shoppers will try new products from the brands they trust most, and 67 percent try to purchase their trusted brand names on sale rather than buy generic or store brand versions.
However, 43 percent of respon-dents say they are less loyal to brands than they were in the past, making it even more important for market-ers to remind shoppers of the trusted relationship they’ve enjoyed with the brand’s product in the past, Brand-Spark says.
Trust was found to be most impor-tant for baby and children’s products and pet food, where three in four shoppers buy the same brand regular-ly. In food, butter tops the list with 66 percent regularly sticking with their preferred brand name. Two in three shoppers also prefer to stick with their top brands of yogurt.
For the complete results and more information, visit http://www.brandsparkmosttrusted.com. CMN
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February 19, 2016 — CHEESE MARKET NEWS® 7
NEWS/BUSINESS
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MADISON, Wis. — The 2016 World Championship Cheese Contest, which will be held March 7-9, has drawn a record 2,932 entries from 23 nations and 31 states, according to the Wisconsin Cheese Makers As-sociation (WCMA), which hosts the biennial event.
“We are proud that our Champi-onship Cheese Contests continue to grow every years says John Umhoefer, executive director, WCMA. “We thank the dairy industry for supporting and participating in this year’s competi-tion.”
The contest, which has been held every other year since 1957, reached 2,619 entries in 2014. The more than 12-percent growth in this year’s event refl ects the addition of yogurt and more than 200 new cheeses entered in a record 110 cheese, butter and
2016 World Championship Cheese Contest draws record 2,932 entries, grows 12 percentyogurt classes.
The contest’s growth is refl ected in several new and returning cheese classes, WCMA notes:
• The Natural Snack Cheese class debuted with 33 entries from 16 companies;
• With the split of the Asiago class into Fresh and Aged, Asiago entries this year increased by 61 percent;
• Hard Hispanic cheese entries grew 33 percent to 18 entries;
• Cheese Based Spreads debuted with 20 entries; and
• Cheeses in the six pepper classes grew 59 percent to 145 total entries.
The addition of eight yogurt classes to the World Championship Cheese Contest contributed to entry growth in 2016 with 110 yogurt submissions from 21 companies. These classes include yogurt, low-fat yogurt, high-
protein yogurt and drinkable cultured products.
Nations participating in this year’s contest include Australia, Austria, Bel-gium, Brazil, Canada, Croatia, Cyprus, Denmark, Finland, Germany, Greece, Ireland, Italy, Lithuania, Mexico, the Netherlands, New Zealand, Poland, Portugal, Spain, Sweden, Switzerland and the United Kingdom.
Additionally, U.S. cheese, butter and yogurt entries came from Arizona, California, Colorado, Connecticut, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Maine, Massachusetts, Michi-gan, Minnesota, Missouri, Nebraska, New Jersey, New Mexico, New York, Ohio, Oregon, Pennsylvania, Rhode Island, South Dakota, South Carolina, Tennessee, Texas, Utah, Vermont, Washington and Wisconsin. U.S. terri-tory Puerto Rico also is participating
in this year’s contest.The contest is free and open to the
public between 9 a.m. and 4 p.m. on March 7 and 8 in the Exhibit Hall at the Monona Terrace in Madison, Wis-consin. The evening of March 8, WCMA and Wisconsin Cheese Originals will host a ticketed Cheese Champion event where the top 16 cheeses will be evaluated and the World Champion Cheese will be named. The event will include cheese sampling, appetizers and an open bar, and proceeds will benefit the Wisconsin Center for Dairy Research and Second Harvest Foodbank of Southern Wisconsin.
Awards will be given and gold medal cheeses will be auctioned April 14 during the International Cheese Technology Expo in Madison.
For more information, visit www.worldchampioncheese.org. CMN
WASHINGTON — A delegation of U.S. senators and representatives from Connecticut last week sent a letter urging the Offi ce of the U.S. Trade Representative (USTR) and USDA to protect Connecticut’s farmers in the Transatlantic Trade and Investment Partnership (TTIP) agreement by preventing the European Union from imposing barriers to common names in the U.S. food labeling system. They say such barriers could harm Connecti-cut farmers and cost the U.S. cheese production industry up to $4.2 billion per year.
The letter was signed by U.S. Sens. Chris Murphy, D-Conn., and Richard Blumenthal, D-Conn., and U.S. Reps. John Larson,D-Conn., Joe Courtney,
Connecticut lawmakers send letter to urge USTR, USDA to protect common cheese names D-Conn., Rosa DeLauro, D-Conn., Jim Himes, D-Conn., and Elizabeth Esty, D-Conn.
In their letter, the Connecticut delegation emphasize that the EU’s implementation of geographical indi-cations would prevent U.S. companies from labeling their products with common food names such as “asiago,” “feta” or “gorgonzola,” among others, and hamper the ability of Connecticut cheese producers to export their prod-ucts and compete with EU companies on a level playing fi eld.
“Unfairly restricting labels for cheeses like asiago just because it isn’t made in Asiago, Italy, makes no sense,” the letter says. “Locally-produced cheese, dairy and other products are
in high demand, and international trade negotiations shouldn’t be the reason why Connecticut farmers all of a sudden can’t sell certain types of popular, well-recognized products. We
should be focused on leveling the play-ing fi eld and breaking down barriers to expand U.S. exports, not making it more diffi cult for local dairy farmers and cheese producers to compete.” CMN
© 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected])
8 CHEESE MARKET NEWS® — February 19, 2016
For more information please visit www.relco.net
NEWS/BUSINESS
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NAPA study says USDA should reorganize trade-related functions, add new under secretaryWASHINGTON — The changing nature of agricultural trade provides a “compel-ling rationale” for a reorganization of USDA’s trade-related functions and the creation of an under sectary for trade position, according to a new study by the National Academy of Public Administra-tion (NAPA).
The study notes that the responsibili-ties of USDA have grown and evolved over time in response to changes in the agricultural sector. In order to respond to these changes, USDA has undergone periodic reorganizations throughout its history. Citing the growing importance and complexity of agricultural trade, as part of the Agricultural Act of 2014, Congress mandated that the Secretary of Agriculture develop a plan to create a new under secretary position focused on trade-related issues.
The Agricultural Act of 2014 di-rected the department to contract with NAPA to assist in developing a plan for reorganizing the department with the goal of enhancing the department’s leadership and coordination on trade-related issues.
To undertake this study, NAPA con-vened an expert panel of fi ve fellows to identify and evaluate reorganization options and provide guidance on how the panel’s preferred reorganization option could be implemented.
NAPA notes after careful consid-eration of external and some internal stakeholder views and the current state of agricultural trade, the panel concluded that the changing nature of agricultural trade provided a compel-ling rationale for a reorganization of USDA’s trade-related functions and the creation of a new under secretary focused on trade. The panel reviewed
three possible reorganization options, in addition to the status quo.
The panel’s report identifies a preferred reorganization option that it believes will enable a consistent, high-level focus and effi cient inter-agency coordination on trade issues, while preserving the independence of health and safety regulatory processes and minimizing disruption to domestic programs and activities.
In addition to identifying and evalu-ating reorganization options, the panel’s report provides 18 recommendations intended to enhance the success of the department as it addresses current and evolving issues related to agriculture and agricultural trade in particular.
The panel recommends that the new trade-focused under secretary portfolio include three parts: the Foreign Agricul-tural Service; all the components of the Agricultural Marketing Service that sup-port trade through market development, including quality standards and product differentiation, in their entirety; and the Federal Grain Inspection Service.
The panel’s recommended option also would create a new under secretary portfolio that includes the Animal and Plant Health Inspection Service (APHIS) and the Food Safety Inspection Service (FSIS). The panel believes that moving APHIS and FSIS into the same under sec-retary portfolio will strengthen the United State’s reputation for science-based regu-lation while enhancing mission-critical synergies between APHIS and FSIS.
While the structural changes in the recommended option are important, the panel believes success also depends on the following:
• Ensuring a clear division of respon-sibilities between USDA and U.S. Trade
Representative;• Defi ning the responsibilities of the
new under secretary positions; • Defi ning the qualifi cations for the
new under secretary positions;• Enhancing and institutionalizing
non-structural mechanisms for inter-agency coordination on trade-related issues; and
• Employing sound change manage-ment practices.
In addition, the panel suggests that Congress consider specifying in legisla-tion the authority of the Secretary of Agriculture to undertake the recom-mended restructuring.
To v i e w t h e r e p o r t , v i s -it www.napawash.org. CMN
Arla Foods announces structural changes, anticipates eliminating 500 positionsVIBY, Denmark — Arla Foods recently announced that it plans make structural changes, including the formation of a new executive management team and the creation of a more effi cient and globally-focused structure.
The changes follow Arla’s announce-ment in December of its Strategy 2020, which focuses on growing the company’s business in eight global dairy categories and six market regions.
Arla says its new structural organiza-tion will drive effi ciencies through faster decision-making and execution in more globalized supporting functions such as supply chain, fi nance and human resources, and develop more collab-orative ways of working and reducing duplication across countries.
As a result of these changes, Arla says it anticipates eliminating 500 positions, and the company will be consulting with any affected personnel as soon as possible.
Arla CEO Peder Tuborgh has as-sembled a new executive management team that is reduced from nine to seven members. Tuborgh will be CEO and head of milk, members and trading; Povl Krogsgaard will be vice CEO and head of global supply chain; Natalie Knight will
be CFO; Ola Arvidsson will head human resources and corporate affairs; Hanne Søndergaard will head marketing and innovation; Peter Giørtz-Carlsen will head the Europe commercial markets; and Tim Ørting Jørgensen will head the international commercial markets.
“We need to act local and think global, and the new organization
refl ects this.”
Peder TuborghARLA FOODS
Main structural changes include:• Marketing and innovation is
elevated to a place in the executive management team to deliver global brand growth and category leadership;
• Two commercial areas are formed in the executive management team — Europe and international — leaving country managements with strength-ened commercial focus on customers, consumers and categories;
• One global supply chain and one global milk pool are created;
• The organizational structure is streamlined with resources prioritized to support the Strategy 2020 work streams.
Arla says the executive management team will work with their individual teams to agree how best to deliver the 2016 business plan and the 2020 strategy. The company anticipates any resulting changes in the organization will be confi rmed by April 1.
Arla’s goal is to increase the organic revenue growth rate from 2 percent to at least 4 percent by 2020.
“This is a fundamental change for the company,” Tuborgh says. “For many years, Arla has grown mainly through cooperative mergers where the new milk already had a position in the market. Our continued success depends on our organization’s abil-ity to increase the value and develop profi table positions for the growing milk volumes coming in now from our existing farmer-owners. We need to act local and think global, and the new organization refl ects this.” CMN
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February 19, 2016 — CHEESE MARKET NEWS® 9
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R&G Cheese Makers sets March completion date for new creamery in Troy, New YorkBy Chelsey Dequaine
COHOES, N.Y. — R&G Cheese Makers began the process of building its new Troy, New York, creamery two years ago. With coolers being added this week, Sean O’Connor, president and head cheesemaker, says he feels relief with
the March completion date in sight.“We’ve been in our beginning plant
for seven years, and we outgrew it the day we moved in,” he says. “I’m fi nally allowing myself to get excited about it.”
R&G Cheese Makers, named after O’Connor’s sons Ryan and Gavin, cur-rently operates in a 500-square-foot space in Cohoes, New York. The new Troy creamery will give the company 4,000 square feet of operating space.
“I grew up in Troy, and it has always had a northeast industrial city feel, but now it has a hip feeling to it,” O’Connor says. “We were itching to get more di-rectly in line with that.”
R&G found the new property in 2014,
but construction was delayed due to fi nancing and ensuring the building would meet state regulations. Construc-tion began in fall 2015.
Currently, two full-time employees help produce R&G’s cheese offerings, including a handmade line of Mozza-rella, nine fl avors of fresh goat cheeses, a line of ripened goat cheeses, hard cheeses, Cheddar and blue cheeses. In the new plant, O’Connor will add two full-time and part-time employees. With enough space for an aging facil-ity, R&G also will produce long-aged cheeses.
“The main goal is increasing ef-fi ciency and moving in new machines
we couldn’t in our old space,” O’Connor says. “We were so anxious to start our business that, after seven years of de-veloping a wish list, we will have a plant we are more visually proud of.”
O’Connor looks forward to inviting the public for tours and tastings more often than he was able to at the old creamery.
“It will allow us to be more hands on with the public, rather than go-ing to an event to meet them,” he says. “We’ve gotten such a great reception from the city government and residents — responses I never thought would happen. That has gotten us excited to make the move.” CMN
Arla Foods enters contract with Asda for British milk LEEDS, England — Arla Foods UK recently announced it has entered a new three-year contract with Asda to supply the retailer’s own brand of milk and cream. The new agreement allows Asda to source more than 1.5 billion liters of British milk from the Arla dairy cooperative.
Last year, Asda was the fi rst major grocery retailer to carry Arla’s “respon-sibly sourced farmer-owned” marque on its online and in-store packaging. This most recent contract ensures that the partnership will continue until 2019 to provide Arla farmer owners with a sus-tainable home for their milk, Arla says.
“This is welcome news, and we value Asda’s continued support for our dairy farmers,” says Peter Giørtz-Carlsen, executive vice president, Arla Foods UK. “This demonstrates that we need to develop our industry by partnering with our retail customers and adding value. We look forward to working further with Asda and supporting their commitment to our owners.”
In addition to this new contract, Arla says Asda is increasing its support by extending the Asda DairyLink groups, where it has been working directly with Arla farmer owners to improve animal welfare, reducing carbon footprint and increasing effi ciency on the farm. CMN
Fuel Up to Play 60, USDA award $35M in school grantsROSEMONT, Ill. — USDA and the dairy farmer-founded Fuel Up to Play 60 program have announced they will provide $35 million in grants to help schools nationwide upgrade kitchen equipment and infrastructure to help provide students better access to healthy foods, including dairy.
“These grants will go far in helping thousands of schools that face a daily reality that students often arrive hungry, which impacts their ability to learn,” says Paul Rovey, Arizona dairy farmer and chairman of Dairy Management Inc., which manages the national dairy checkoff.
According to Fuel Up to Play 60, the program has reached students in 73,000 schools. It was created by dairy farmers and the National Football League with support from USDA. CMN
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10 CHEESE MARKET NEWS® — February 19, 2016
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PEOPLE EVENTS
Comings and goings … comings and goings
Americold, Atlanta, has announced Fred Boehler, formerly the company’s president and chief operating offi cer, has been appointed to the role of president and CEO. Boehler also has been appointed to Americold’s board of trustees. Prior to joining Americold, Boehler served as senior vice president of Supply Chain with SUPERVALU Inc.
Bossar USA, Lawrenceville, Geor-gia, has appointed Alex Marzo as its new general manager. Marzo takes over the role from Charlotte Koellner, who announced her retirement in December.
Kahala Brands, Scottsdale, Ari-zona, has announced Dr. Maya War-ren is joining its team as tastemaster and food scientist for portfolio brands Cold Stone Creamery and Pinkberry. In her role with Kahala Brands, the company says to expect to see Warren in the spotlight promoting new fl avors, as well as mainstay customer favorites.
AnnMarie Kraszewski has been named research and development lab manager, industrial ingredients division, for Wixon, St. Francis, Wis-
consin. Kraszewski’s responsibilities include overseeing all aspects of the industrial ingredients lab and assist-ing the vice president of research and development in formulating and initi-ating new programs and procedures.
Sargento Foods Inc., Plymouth, Wisconsin, has announced Lynn Webb as national account sales manager. Webb previously was national customer business manager in the consumer products division, a position she held since joining Sargento Foods in Sep-tember 2013. Sargento Foods also has announced Lauren Farr as a sales analyst and Erin Johnson as customer business manager in the consumer prod-ucts division. In Farr’s newly created position, she will support the Kroger sales team, the Kroger headquarters and will lead in division engagement and business development. Johnson will be responsible for the Sam’s Club and BJ’s Wholesale Club accounts and will manage the sale of Sargento Foods products, the development of markets and customer relations. CMN
WASHINGTON — Agriculture Deputy Secretary Krysta Harden has announced her plans to depart USDA at the end of February 2016.
“I am proud of what our department has accomplished since 2009 to bring economic opportunity that will help rural America thrive for generations to come,” Harden says.
Harden says she began her service to USDA in the Offi ce of Congressional
Agriculture Deputy Secretary Harden to retire from USDA at the end of February
Relations. As the Secretary’s Chief of Staff, she says she had the pleasure of working with many talented USDA employees who have dedicated their lives to helping rural America thrive.
“As deputy secretary, I am proud to lead the implementation of the 2014 Farm Bill,” Harden says. “My work at USDA on behalf of our farmers, ranchers, producers and rural communities has been the great-est honor of my professional life.” CMN
CASA GRANDE, Ariz. — Pinal 40 Foundation, a nonprofi t, has announced the 2016 Arizona Agricultural Experi-ence will be March 8-10 in Casa Grande, Arizona.
According to Pinal 40 Foundation, the inaugural event in 2015 raised more than $180,000, which was given as agricultural-related scholarships to students, Boys and Girls Clubs and other agricultural and youth oriented organizations.
On March 8, the event will include an agricultural tour to Shamrock Farms, Phoenix; T&K Red River Dairy,
Arizona Agricultural Experience to be March 8-10, will raise funds for youth
Stanfi eld, Arizona; and Ehrmann Dairy Yogurt Plant, Casa Grande, Arizona. The tour will be followed by a welcome reception and dinner.
On March 9, attendees can par-ticipate in educational seminars, a golf tournament at San Marcos Golf Course or attend a Cactus League spring train-ing baseball game.
On March 10, attendees can attend a St. Patrick’s Day Party in Casa Grande, Arizona, where equipment from RDO Equipment Co. will be on display.
For more information, visit http://azagexperience.org. CMN
ITHACA, N.Y. — The Laboratory Practices Committee of the New York State Association for Food Protection, New York State Depart-ment of Agriculture and Markets and Cornell University again will offer fi ve Regional Laboratory Seminars March 22-30. The programs are de-signed for those actively working in dairy product testing and quality assurance programs, but may be of interest to others including certifi ed milk inspectors and plant receivers.
Topics will include an overview and update of the profi ciency/split sample program; a discussion on pathogen environmental monitoring (PEM) programs; detailed information on
Cornell to offer fi ve Regional Laboratory Seminars March 22-30 across New York
new/future requirements for drug residue testing under appendix N; and an FDA/National Conference on Interstate Milk Shipments/New York state update.
The dates and locations of the seminars are: March 22, Cortland, New York; March 23, Canton, New York; March 24, Batavia, New York; March 29, Plainview, New York; and March 30, Albany, New York.
Preregistration is required. The registration fee for each seminar is $20.
For more information, email [email protected], [email protected] or visit http://bit.ly/CornellLabSeminars. CMN
CHICAGO — CheeseTopia 2016, pre-sented by Roth Cheese and Wisconsin
Cheese Originals, will be April 10 at the Skyline Loft at the Bridgeport Arts Center in Chicago.
Wisconsin Cheese Originals says the festival brings the best of Midwest artisan and farmstead cheeses to a dif-ferent city each year. Attendees have the opportunity to meet, greet, sample and purchase cheeses from 50 artisan producers from around the Great Lakes Region.
Participating cheesemakers in-clude: Alemar Cheese Co., Mankato, Minnesota; BelGioioso Cheese, Green Bay, Wisconsin; Burnett Dairy Coop-erative, Grantsburg, Wisconsin; Carr Valley Cheese, LaValle, Wisconsin; Clock Shadow Creamery, Milwaukee, Wisconsin; Emmi Roth USA, Monroe, Wisconsin; Marieke Gouda, Thorp, Wisconsin; Klondike Cheese, Monroe, Wisconsin; Sartori Company, Plymouth, Wisconsin; and Uplands Cheese, Dod-geville, Wisconsin.
Tickets are $75 each and can be bought at https://www.wicheesefest.com/store/cheesetopia-2016. New this year , tickets include open bar with free wine, beer and soda.
For more information, visit http://www.wisconsincheeseoriginals .com/cheesetopia-festival/. CMN
CheeseTopia 2016 to be April 10 in Chicago
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February 19, 2016 — CHEESE MARKET NEWS® 11
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EVENTS
MADISON, Wis. — The Wisconsin Cheese Makers Association (WCMA), in conjunction with the Wisconsin Center for Dairy Research (CDR), will launch the Artisan Cheesemak-ers Master Workshop April 12-14. The training will run concurrently with the International Cheese Technology Expo at the Wisconsin Center in Milwaukee.
According to WCMA, the training will give participants access to in-dustry leaders and an opportunity to work directly “at the vat” with master cheesemakers.
“For an up-and-coming artisan chee-semaker, there’s no better chance to network and learn from the industry’s best,” says John Umhoefer, executive
Wisconsin Cheese Makers Association launches workshop for artisan cheesemakersdirector, WCMA. “We’re pleased to of-fer this workshop and grateful to those industry veterans who are generously sharing their knowledge with skilled artisans.”
Seminars April 13 will focus on rennet options, techniques for smear-ripened and washed-rind cheese, the creation of Spanish and Portuguese cheeses and the art and science of cheese affi nage. Presenters include Bénédicte Coudé, associate researcher, cheese industry and applications group, CDR; John Jaeggi, cheese industry and applications coordinator, CDR; Thomas Milhoua, technical engineer for Air Quality Process of France; and Marianna Marques de Almeida, cheese specialist.
“This seminar will be an excellent opportunity for artisan cheesemakers, beginners and experienced, to learn more about the science and savoir-faire of artisan cheeses,” Coudé says.
On April 14, cheesemakers will be bussed to Clock Shadow Creamery in Milwaukee where experts will lead them in a hands-on production of Portuguese-style hard cheese made with 100 percent sheep’s milk and thistle rennet, as well as a Requesón-style cheese. Vat-side discussion will be led by previous presenters and Bob Wills, head cheesemaker, Clock Shadow Creamery; Gary Grossen, master cheesemaker at Babcock Hall Dairy; and Chris Roelli, Wisconsin master cheesemaker at Ro-
elli Cheese. After the cheesemaking process, participants will be treated to a cheese tasting and sensory analysis guided by Patrick Polowsky, sensory coordinator at CDR.
The reduced rate for the fi rst 25 par-ticipants is $195. After, WCMA member registration by Feb. 26 is $405 and $495 for nonmembers. After Feb. 26, WCMA member registration is $450 and $550 for nonmembers. Registrants must be active cheesemakers and will be ap-proved for the workshop. Fees include complete access to the workshop and all facets of the International Cheese Technology Expo.
For more information, call 608-286-5803 or visit www.cheeseexpo.org. CMN
LA CROSSE, Wis. — The La Crosse Area Convention and Visitors Bureau has announced the Between the Bluffs Beer, Wine and Cheese Festival will be April 23. The bureau says the festival currently is seeking cheese vendors and will pay up to $450 for product.
According to the bureau, the fes-tival is the annual celebration of ar-tisanal cheesemakers, craft brewers and vintners from across the country.
Between the Bluffs Beer, Wine and Cheese Festival April 23 seeks cheese vendors
“The 2016 fest offers more tasting opportunities than ever before, with over 200 quality beers, 45 types of wine and numerous gourmet cheeses from around the state of Wisconsin,” says the La Crosse Area Convention and Visitors Bureau.
For more information or reg-ister, visit http://www.explorela-c r o s s e . c o m / b l u f f s - b e e r - w i n e -cheese-festival/?hvid=R6VCT. CMN
ELMHURST, Ill. — The American Dairy Products Institute (ADPI) and American Butter Institute’s (ABI) 2016 annual conference will be April 24-26 at the Hyatt Regency Chicago. The conference program will address the manufactured dairy product industry’s latest challenges, obstacles and oppor-tunities with presentations from speak-ers, including industry executives, gov-ernment offi cials and academia.
On April 24, a bus will leave the Hyatt Regency Chicago for the ADPI golf outing at Ruffl ed Feathers Golf
Challenges, opportunities to be addressed at ADPI/ABI conference April 24-26 in Chicago Club in Lemont, Illinois. The $125 registration fee includes the green fee, cart, lunch and transportation. At 5:30 p.m., conference welcome reception will begin.
On April 25, the conference in-cludes an opening session continental breakfast, the ADPI affi liate committee meeting, industry briefi ngs, exhibits and the Grand Chicago Reception. During the luncheon, the recipients of ADPI’s Award of Merit and Jim Page Memorial Scholarship will be announced and a presentation on the
2017 International Whey Conference will be made.
Speakers April 25 include: Doug Wil-ke, president, ADPI, and vice president of marketing and technology, Foremost Farms, USA; Irv Holmes, president, ABI, and CEO and president, Challenge Dairy Products Inc.; and Autumn Veazey Price, vice president of government relations, Land O’Lakes Inc.
Sessions April 25 include: Lactose Task Force Briefi ng; Permeate Brief-ing; Dairy Market Outlook for 2016 and Beyond; Dairy Ingredient Marketing Committee Briefi ng; and the Alterna-tive Cheese Color Task Force Briefi ng.
On April 26, the conference includes a dairy industry breakfast; a senior leadership panel: Challenges and Op-portunities in the Dairy Industry; exhib-its; a panel discussion: Emerging Dairy Ingredients – What’s on the Horizon?; the ADPI annual business meeting and
board of directors meeting; an industry luncheon; the ABI board of directors meeting; and industry briefi ngs.
Speakers/panelists April 26 include: Dave Thomas, CEO, ADPI; David Ahlem, Hilmar Cheese; Jon Davis, Da-visco; Michael Doyle, Foremost Farms; Kevin Ellis, Cayuga Milk Ingredients; and Phil Tong, professor of dairy sci-ence, Cal Poly, and ADPI Center for Excellence member.
For more information, visit https://www.adpi.org/Events/2016ADPIABIAnnualConference/tabid/110/Default.aspx. For more information, visit https://www.adpi.org/Events/2016ADPIABIAnnualConference/tabid/110/Default.aspx.
F o r s p o n s o r s h i p o p p o r t u -nities, visit http://www.adpi.org/Portals/0/16annualmeeting/Spon-sorshipBooklet_Updated%20on%20Jan%2012_enduser.pdf . CMN
MADISON, Wis. — Dairy Markets and Policy (DMaP) will host its 23rd Annual National Workshop for Dairy Economists and Policy Analysts May 2-3 (an optional bus tour of two farms and two dairy processing/marketing businesses will be May 4) at the Hyatt Regency Hotel and Conference Center in Buffalo, New York.
Sessions include: Long-Term Per-spectives on U.S. Dairy Markets: De-mand Opportunities and Challenges; Long-Term Perspectives on U.S. Dairy
DMaP offers 23rd National Workshop for Dairy Economists, Policy Analysts May 2-3
Markets: Aligning Regional Supply and Global Demand in Dairy Markets; Global Perspectives on Milk Produc-tion, Dairy Demand, Prices and Risk; and Pathways to Progress in the Dairy Industry.
The registration fee for the program is $380, and the deadline to register is April 29. The registration fee for the bus tour May 4 is an additional $50.
For more information, visit http://dairymarkets.org/Workshops/2016Buffalo/. CMN
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12 CHEESE MARKET NEWS® — February 19, 2016
HRContinued from page 1
NEWS/BUSINESS
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learning and development manager for MRA-The Management Association, a nonprofi t trade association.
Marris provided an overview of the generations that comprise today’s workforce and the challenges that can arise among employees with different value systems.
Marris focused on four generations in the workforce today:
• “Silents/Matures,” making up just 2 percent of the workforce, are those born in 1945 or earlier.
• “Baby Boomers,” comprising 29 percent of the workforce, are those born between 1946 and 1964.
• “Gen Xers,” making up 34 per-cent of the workforce, are those born between 1965 and 1979.
• “Millennials” — comprising 35 percent of the workforce and grow-ing — are those born between 1980 and 2000.
Marris adds that the generation following millennials also is now just beginning to enter the workforce as they approach age 16.
He notes that it’s important to “fl ex” to the needs of co-workers from other generations to maximize productiv-ity and communication effectiveness, keeping in mind four principles — every generation assumes others want what they want to be successful; every generation has an expectation that whatever the fi rst generation had to work through, the next will also; every generation believes the next genera-tion has it easier; and every generation rebels at some point and later gives up visible signs of rebellion but not the elements of their value system.
Marris recommends keeping these strategies in mind when working with
each generation in the workforce.Silents/Matures are about respect,
he says. It is important to ask questions and listen, provide clear written goals and expectations, and to be honest and candid.
Baby Boomers, used to “running the show,” need frequent and specifi c recognition for their work, Marris says. It is important to show them you care and to be honest, candid and direct.
Meanwhile, Gen Xers have some-what of a “prove it to me” mentality, Marris says. They believe in work/life balance, and value feedback that is truthful, trustworthy and direct, while millennials, who thrive on “instant gratifi cation,” need frequent and in-stant feedback, he says. Millennials use technology to the max and are heavy on negotiating work/life “blending,” he adds.
“Every generation overcorrects for what it views as the ‘sins’ of the previ-ous one,” Marris says.
“By 2025, millennials will comprise 75 percent of the workforce,” he adds. “Will you be ready?”• Employment law
Finally, Christopher L. Nickels, attorney, Quarles & Brady LLP, which specializes in employment litigation, outlined key labor and employment law issues that companies need to be aware of, particularly what they should do in response to changing rules regarding overtime and independent contractor status.
One of the biggest issues facing employers today is DOL’s proposed compensation increases for overtime exemption tests.
Nickels notes this applies only to “white collar” exempt employees, including executive, administrative, professional and computer employees.
They must still meet a primary job “duties test,” and their salary is not
subject to reduction because of varia-tions in the quality or quantity of work performed.
While there currently are no pro-posed revisions to the “duties” tests, there may be changes in a fi nal rule, Nickels says.
DOL has proposed a compensation increase to minimum salaries in 2016.
Nickels notes a comment period on the proposed rule closed in September 2015. DOL received nearly 300,000 comments underscoring a sharp divide in opinion.
Major concerns include that the salary level does not account for mar-ket differences, and there could be decreased morale for employees who are reclassifi ed as non-exempt, as well as increased employer monitoring of hours worked to control overtime costs, Nickels says.
He notes that issues under further consideration that may be included in the fi nal rule include whether bonuses may count toward salary; changes to the duties test; and the timing of possible implementation.
The DOL fi nal rule is expected in mid-2016, after which changes will take effect, Nickels notes. However, actual implementation may be delayed if businesses or trade groups fi le suit to block.
To prepare for these potential changes, Nickels recommends that
employers:• Proactively assess current wage
and hour practices to determine operational and fi nancial impact of increased salaries;
• Consider changes to staffi ng or salary levels;
• Analyze staffing patterns to maximize effi ciency and eliminate unnecessary hours;
• Prepare fi nancial forecasting/budgeting models to account for in-creased overtime expenditures;
• Revise policies or more closely monitor and manage hours worked to minimize overtime exposure; and
• Hire additional workers to mini-mize overtime expenses.
Nickels also provided an overview of the benefi ts of utilizing independent contractors, as well as legal parameters surrounding their employment. In ad-dition, he shared an overview of the Americans With Disabilities Act, FMLA and worker’s comp law.
The meeting wrapped up with a panel discussion with the three pre-senters. Attendees asked clarifying questions about employee handbooks and employment law, and also com-mented on generational challenges in the workplace.
“If there’s one thing we can work on, it’s listening skills,” Mar-ris says. “We want engagement versus simply compliance.” CMN
OUTLOOKContinued from page 1
years will result in favorable returns for producers and provide economic incentives for continued expansion.
Domestic demand will grow at a strong pace, USDA says, with com-mercial use of dairy products rising
faster than U.S. population growth over the next decade. Demand for cheese is expected to rise due to greater consumption of prepared foods and increased away-from-home eating. Butter demand also is expected to grow, in part due to the phase-out of trans fats. The decline in per-capita fl uid milk consumption is expected to continue.
Commercial exports of U.S. dairy products declined in 2015, mostly due to lower demand from China and greater competition from the Euro-pean Union as a result of the Russian trade ban, USDA says. However, U.S. exports are projected to recover and expand over the next decade, led by greater exports of products that are high in nonfat milk solids, such as nonfat dry milk. U.S. dairy exports are projected to reach record levels on both a milkfat and a skim-solids basis. Production increases in other major dairy exporting countries are expected to lag in growth compared to global import demand.
USDA says nominal farm-level milk prices are projected to decline through 2018 as lower feed costs encourage increased production. Prices then are expected to rise faster than general infl ation over the rest of the projec-tion period, largely on the strength of export market gains.
To read the full report, visit http://ers.usda.gov/publications/oce-usda-agricultural-projections/oce-2016-1.aspx. CMN
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February 19, 2016 — CHEESE MARKET NEWS® 13
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14 CHEESE MARKET NEWS® — February 19, 2016
NEWS/BUSINESS
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Artisan Specialty Foods opens 28,000-square-foot Specialty Foodservice Distribution facilityBONITA SPRINGS, Fla. — Artisan Specialty Foods, a wholly-owned sub-sidiary of Innovative Food Holdings, has launched its new 28,000-square-foot dis-tribution facility in Broadview, Illinois.
The Broadview facility was purchased in July 2015 and built to meet Artisan’s custom specifications, the company says, and its location and size enables it to better serve its customers in Metro Chicago and the surrounding areas.
Artisan Specialty Foods also says the greater capacity allows it to introduce a wider range of products that are re-packed or private labeled and allows for growth in stocked inventory for all prod-ucts, including products sold nationally.
“The new customized build out, inte-gration and warehouse transition to this new facility went seamlessly due to the hard work of our talented and dedicated team at Artisan Specialty foods,” says Jus-tin Wiernasz, president, Innovative Food Holdings. “We continue to see strength in the business and expect this distribution facility to help drive growth with our cur-rent local chefs and customers and to help facilitate further national sales growth across Innovative Foods’ subsidiaries.”
Wiernasz also says the facility provides the opportunity to service the growing number of chefs in the Greater Chicago area who are seeking artisanal specialty and local, farm-to-table products.
“I expect this expansion of Artisan Specialty’s capabilities and offerings will open the door for the growth
of Artisan’s unique business model into additional specialty food verti-cals and markets,” he says. CMN
U.S. milk goat inventory up 3 percent from 2015WASHINGTON — The U.S. milk goat inventory as of Jan. 1, 2016, was 375,000 head, up 10,000 head, or 3 percent, from a year earlier, according to the annual “Sheep and Goats” report recently re-leased by USDA’s National Agricultural Statistics Service (NASS).
Wisconsin leads the nation in milk goat numbers, standing at 44,000 head as of Jan. 1, 2016, unchanged from a year earlier. California is second, with 39,000 head of milk goats, down 2 percent from Jan. 1, 2015, NASS says.
Rounding out the top 10 milk goat states and regions are:
• Iowa, with 33,000 head as of Jan. 1, 2016, up 6 percent from a year earlier;
• Texas, with 22,000 head, down 4 percent;
• New England (including Con-necticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont), with 14,500 head, unchanged from a year earlier;
• Pennsylvania, with 14,000 head, up 8 percent.
• Minnesota, with 13,500 head, unchanged.
• New York, with 12,300 head, down 8 percent.
• Oregon, with 12,200 head, up 28 percent; and
• Michigan, with 11,800, up 4 percent. CMN
Gay Lea Foods unveils new initiatives to grow dairy goat industry in OntarioMISSISSAUGA, Ontario, Canada — Gay Lea Foods Co-operative Ltd. has announced two new initiatives to grow and strengthen the goat industry in Ontario.
At its recent annual meeting, delegates approved bylaw changes to expand the co-op’s open membership to include dairy goat producers as
producer members of the cooperative. Gay Lea Foods says it also has made
a further investment in goat processing with the purchase of a minority share in Mariposa Dairy Ltd., a goat cheese-maker located in Ontario, Canada.
The company says this further demonstrates its commitment to be an active investor and partner to develop the dairy goat value chain in Ontario.
“As a dairy cooperative, Gay Lea Foods is well positioned to understand both the goat farming priorities and the need for development of innovative, high quality and safe products to meet the demand and market opportunities for goat milk products,” says Michael Bar-rett, president and CEO, Gay Lea Foods. “Welcoming new dairy goat producer members and the investment in Mariposa Dairy Ltd. further strengthen the position of Ontario agri-food as a leader in both domestic and international markets.”
Gay Lea Foods is the fi rst Canadian co-operative to have both licensed dairy cow and dairy goat members. CMN
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February 19, 2016 — CHEESE MARKET NEWS® 15
ALCAMContinued from page 1
NEWS/BUSINESS
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According to Bloomberg, however, several varieties of grated Parmesan cheese at retail tested positive for amounts of cellulose above 4 percent, and some did not list cellulose as an ingredient on the label.
“It is disappointing to learn of this situation because we have long worked to assure that consumers could buy wholesome, safe and honest products — that’s at the core of everything we stand for in the dairy industry,” says Patrick Geoghegan, senior vice presi-dent of corporate communications for the Wisconsin Milk Marketing Board.
The issue is one of growing concern for long-established hard Italian chee-semakers and importers like Arthur Schuman Inc. who want to hold the industry to a higher standard. Arthur Schuman estimates that of the ap-proximately 463 million pounds of Italian hard cheeses sold in the United States each year, more than 90 million pounds — mostly in grated forms sold in canisters — is adulterated with exces-sive levels of starches, fi llers and even vegetable oil-based imitation cheese.
Neal Schuman, CEO, Arthur Schuman Inc., notes that while the issue has been in the media for some time, previous coverage focused largely on the educational aspect of issues
of adulteration and truth in labeling. However, Bloomberg took the initiative to go to market and test cheeses, and its results showed the extent of the issue.
“Bloomberg’s independent actions coupled with quotes from FDA and a pending litigation added a strong appeal to the story,” he says. “And, we have entered a period of broad consumer sentiment and preference where transparency, truth in labeling and higher quality are paramount in the foods people buy.”
The International Dairy Foods As-sociation (IDFA) brought the issue to light in a July 2013 letter to “Parmesan Cheese Purchasers.”
In the letter, IDFA President and CEO Connie Tipton says that, on behalf of the National Cheese Institute, she is alerting purchasers to a concern that some cheese being labeled and sold as Parmesan does not meet FDA’s federal standard of identity for products offered for sale as Parmesan.
“Under this standard, it is particu-larly important that cheese being sold as Parmesan contains only Parmesan cheese (no other types of cheese can be added), meets the required moisture content (not more than 32 percent), contains not less than 32 percent of milkfat, is aged for the required 10-month time period, uses no unap-proved additives or ingredients and is otherwise processed in the manner specifi ed in the standard of identity,” Tipton writes. (See “Italian cheese marketing fraud spotlighted by U.S. stakeholders” in the Sept. 4, 2015, issue of Cheese Market News.)
This week, Clay Hough, senior group vice president and general counsel for IDFA, notes the association believes that all cheese, including Parmesan, must adhere to FDA’s standards of identity.
“Compliance with cheese standards
is in the best interest of consumers and the dairy industry,” he says.
In a move to address the issue, Arthur Schuman Inc. in November unveiled a new True Cheese seal, the industry’s fi rst trust mark for quality assurance in cheesemaking. The seal is intended to verify the integrity and quality of cheese that companies like Arthur Schuman market, and to assist both consumers and wholesale buyers in selecting real cheese made without excessive fi llers and unwanted non-cheese ingredients. (See “ASI says new True Cheese seal will help combat adulteration, fraud in Italian category” in the Nov. 20, 2015, issue of Cheese Market News.)
John Umhoefer, executive director of the Wisconsin Cheese Makers As-sociation, says one message that needs to be clear to consumers is that the adulterated cheeses in question are not “real” Parmesan.
However, consumers are in a hurry, skimming stories and headlines, and are not necessarily making that distinction, he adds.
He says the issue makes the True Cheese seal an important tool for the industry.
Meanwhile, the U.S. government is taking action against some of the alleged offenders.
The U.S. Attorney’s Offi ce last year fi led criminal charges in the West-ern District of Pennsylvania against Universal Cheese & Drying Inc. and International Packing LLC, both based in Slippery Rock, Pennsylvania, as well as Michelle Myrter for the alleged intro-duction of misbranded and adulterated food into interstate commerce. Myrter, president of Castle Cheese, is charged as the responsible corporate offi cer for Universal and International.
The charges followed a July 2013 let-ter to the company from FDA in which
the agency wrote: “Your product labels declare that the products are parmesan cheese or romano cheese, but they are in fact a mixture of trimmings of various cheeses and other ingredients. In addi-tion, your parmesan cheese products do not contain any parmesan cheese.” (See “Criminal complaints allege compa-nies profi ted from selling misbranded, imitation cheese” in the Oct. 30, 2015, issue of Cheese Market News.)
Myrter is set to plead guilty to criminal charges. She faces up to a year in prison and a $100,000 fi ne, news reports say.
Bob Wheatley, CEO of Emergent Healthy Living, which manages commu-nications for Arthur Schuman, says the important next step for the industry is the deployment of the True Cheese logo to provide consumers with “validation and assurance that what they’re buying is labeled correctly and is compliant.”
“If there’s an important point to make here as a call to action, ASI believes the trust mark is essential to validate quality, truth in labeling and CFR compliance,” Wheatley says. “Thus, it closes the loop with consumers so they know what they’re getting. True Cheese is the next chapter in assurance of quality and integrity.”
Schuman says that while there may be a short-term dislocation of some of the dry grated Parmesan cheese business, the long-term benefi ts of consumers getting compliant, properly labeled cheese, with less fi llers, will be positive for the future of the hard cheese business and enable it to grow at higher rates than the industry has experienced in the last few years.
“Consumers have made it clear they want quality, they want truth in label-ing and they want to trust the products they buy are real,” he says. “Thus, it is benefi cial to the integrity of the category for this story to be told.” CMN
FRAUDContinued from page 1
Alcam Creamery name, according to Tayt Wuethrich, vice president of pro-curement, Grassland Dairy Products.
No changes are planned at this time.“We are happy to purchase this plant
and keep moving forward,” he says.Grassland Dairy Products maintains
the Wuethrich family legacy with more than a century of churning cream into butter in Greenwood, Wisconsin.
Alcam Creamery is a family owned and managed creamery that was es-tablished in 1946. At that time Alcam served local cheese plants and dairies, providing an outlet for their cream. But-ter is produced at Alcam Creamery for the local and Midwest regional market. Since its beginnings, Alcam has grown to serve customers throughout the nation and provide butter for domestic and international consumption.
Alcam Creamery expanded in 2012 to include Hillsboro Riverview Dairy, Hillsboro, Wisconsin, which was re-cently acquired by Land O’Lakes Inc. (See “Land O’Lakes buys Hillsboro Riverview Dairy, will expand” in the Jan. 29, 2016, issue of Cheese Market News.) Hillsboro Riverview Dairy now will be under the Land O’Lakes name and all current employees at that facility also have been offered job opportunities contingent on standard hiring prac-tices, Land O’Lakes offi cials say. CMN
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16 CHEESE MARKET NEWS® — February 19, 2016
NEWS/BUSINESS
For more information please visit www.adpi.org
NEWTON, Iowa — Maytag Dairy Farms, Newton, Iowa, recently announced a voluntary recall of Maytag Raw Milk Blue Cheese due to possible Listeria monocytogenes contamination.
The recalled product was packaged in December 2015 and January 2016 in 4- and 8-ounce wedges, 2- and 4-pound wheels, and 5-pound crumbles.
The cheese was distributed to HoQ restaurant in Des Moines, Iowa; The Bear Restaurant in Ankeny, Iowa; Wine Experience in West Des Moines, Iowa; Fareway in Newton, Iowa; Lomar Dis-tributing Inc. in Des Moines, Iowa; or purchased directly from Maytag Dairy Farms. No illnesses have been reported to date.
The Iowa Department of Agricul-ture and Land Stewardship’s Dairy Products Control Bureau discov-ered the possible contamination during routine testing. CMN
Maytag Dairy Farmsvoluntarily recalls Blue cheese due to possible Listeria
DUBLIN — The Irish Cooperative Organisation Society (ICOS), a rep-resentative group for the cooperative movement in Ireland, has launched a new agri-taxation proposal aimed at combating extreme income volatility in the dairy sector. ICOS says the ob-jective of its proposal is to address a weakness in the existing system that provides benefi ts to farmers when profi ts are rising but can be a cost when profi ts are falling.
The proposed measure, the ICOS “5-5-5” Income Stability Tool, would allow farmers who are participants in a fi ve-year income averaging system to voluntarily defer up to 5 percent of their milk receipts in any given year. The money would be retained in an interest-bearing fund managed by their co-op, and the money could be taken out at any time within fi ve years, subject to income tax at the time of withdrawal.
“ICOS has developed a workable and straightforward agri-taxation measure that will help farmers, espe-cially during years of low milk prices,” says Martin Keane, president, ICOS. “We have devised the ‘5-5-5’ scheme in order to comply with EU state aid rules and we urge the incoming government to address this matter in the program for government and budget 2017.”
Keane adds that this is only one of a series of measures needed to help counter dairy market volatility. CMN
Irish co-ops offer proposal to combat dairy price volatility
WASHINGTON — In order to strength-en the ongoing partnership between the dairy and beef segments of the cattle industry on animal care issues, the National Milk Producers Federation (NMPF) and the beef checkoff-funded Beef Quality Assurance program this week announced they will jointly be offering more training opportunities for farmers and ranchers in 2016.
NMPF has been working for the past year on identifying areas where its Farmers Assuring Responsible Man-agement (FARM) program can further coordinate with the Dairy Beef Quality Assurance (BQA) Program, managed by the National Cattlemen’s Beef As-
FARM, BQA extend collaborative commitment on animal care issuessociation on behalf of the beef checkoff. Both programs focus on educating cattle producers about the best practices in animal care, to assure consumers that their meat and milk comes from animals that receive optimal care throughout the animals’ lives, NMPF says.
At the Cattle Industry Convention last month, the BQA Advisory Board approved an addition to its program whereby any dairy producer evaluated using the FARM program’s upcoming version 3.0, due out in January 2017, also will receive their BQA certifi cation.
“This partnership will maximize the value of the beef checkoff’s investment in animal care, which is an issue of
greater importance today because of consumers’ interest in the source of their beef, and the treatment of cows,” says Dan Kniffen, Ph.D., vice chair of the BQA Advisory Board.
Emily Meredith, NMPF’s vice presi-dent of animal care and director of the FARM program, adds that “education is the key to preventing health and wellness problems for cattle further down the road.
In addition to regional training sessions and additional educational materials, the FARM program and BQA will jointly produce online stockmanship training resources that will be made available to dairy farmers this year, NMPF says. CMN
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