Guest worker, labeling, budget bills ... - Cheese Market News
32
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS ® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Dean Foods seeking buyer for Waukesha, Wis., plant DALLAS — Dean Foods Co. this week announced that it is actively seeking a buyer for its milk processing, selling, marketing and distribution business located in Waukesha, Wis. Dean Foods agreed to sell the plant and related business as part of the March 29, 2011, settlement agreement reached with the U.S. Department of Justice (DOJ) and the states of Wisconsin, Illinois and Michigan. The divestiture includes the 170,000-square-foot fluid dairy processing facility and equipment, the Golden Guernsey and La Vaca Bonita brands, as well as other related assets. (See “Depart- ment of Justice reaches settlement with Dean Foods Co.” in the April 1, 2011, issue of Cheese Market News.) Interested bidders can contact Steve Schultz, vice president of corporate development at Dean Foods, at 214-72101414. CMN Artisan cheesemaking enjoys ‘renaissance’ in United States By Johanna Nelson MADISON, Wis. — For Joel and Carleen Weirauch, creating a sustain- able way of life was a big driver in their decision to pursue a farmstead sheep’s milk cheese operation in Petaluma, Calif. The couple, who have built a mobile dairy and creamery on 50 acres of certified organic pasture, are part of a sort of “renaissance” occurring within today’s U.S. artisan cheese industry. “I think there is a large percentage of people active in the Slow Food movement, so there’s a very large consumer base that is demanding artisanal and specialty products,” says Carleen Weirauch. “There is a growing demand for interesting, unusual products that are difficult to find in the larger chain stores. Farmers and small businesses are responding to this market — if there is demand, usually somebody is going to find a way to fulfill it.” The Weirauchs are among a small community of sheep’s milk cheese producers in California. Their flock is comprised of about 50 ewes and is monitored annually as part of the Animal Welfare Approved (AWA) program, which is designed to ensure compliance with rigorous animal welfare standards. The ewes produce milk during the spring and summer, and the Weirauchs plan to obtain milk from an organic Jersey cow dairy dur- ing the off season. Thus far Weirauch, who serves as Weirauch Farm and Creamery’s owner, cheesemaker and sheep herder alongside her husband Joel, says reception among the artisan cheese community has been very supportive — especially among the small number of sheep’s milk cheese producers in the area. “We all know each other — we all share genetics and do whatever we can to improve our stock,” Weirauch says, noting the dairy sheep industry has only been in North America since about 1994. “Over the last few years, we’ve also tried to network with folks doing goat and cow’s milk cheese as well.” In the years to come, Weirauch predicts there will be more consum- ers in California seeking out local products, thanks to collaborative efforts within the artisan cheese industry as well as continual product Volume 31 April 22, 2011 Number 13 WASHINGTON — Several bills making their way through Con- gress this month would have an impact on the U.S. dairy industry, such as proposed new labeling requirements and a guest worker program. Probably garnering the most spotlight is lawmakers continuing work on a federal budget agreement. After inching close to a gov- ernment shutdown two weeks ago, lawmakers approved a fiscal year 2011 budget bill. The measure reduces spending by Guest worker, labeling, budget bills moving through Congress $38 billion over the remaining months leading to Sept. 30, 2011, and funds the government through that time period. With the task of funding the remainder of this fiscal year behind them, last Friday the U.S. House of Representatives approved a fiscal year 2012 budget plan introduced by Rep. Paul Ryan, R-Wis., chair of the House Budget Committee. Ryan’s budget includes $5.8 trillion in federal spending cuts over the next 10 years. The plan would convert Medi- care to a voucher program. As part of its Medicaid reform, the budget would change the entitlement program to block grants, allowing states to de- cide how to allocate Medicaid assistance. The measure is now in the Senate, where it is facing strong opposition. Senate Budget Committee Chair Kent Conrad, D-N.D., says he wants to consider a plan being developed by a bi- partisan “Gang of Six” senators as a framework for the Senate budget blueprint. Leading the compromise are Sens. Mark Warner, D-Va., and Saxby Chambliss, R-Ga. Some type of debt-reduction strategy will have to be on the table by early July; if by early July the debt ceiling has not been raised, the Treasury Department will be unable to continue to borrow money and will default on U.S. debt, according to the Interna- tional Dairy Foods Association (IDFA). Sen. Tom Coburn, R-Okla., another member of the Gang of Six, has been trying to get Re- publicans to accept that some form of tax increases likely will be part of a deal, IDFA notes, adding a compromise likely will include elements both Democrats and Republicans will find fault with, whether they are cuts to entitlements or tax increases, because they may endanger incumbents’ chances for re-election in 2012. “What the country needs to hear from the leaders in Washington is that we under- stand how big this problem is and that we’re willing to lose elections to do what’s best for the country, and that’s what’s not happening now,” Coburn says. President Obama last week also unveiled a deficit reduction proposal, seemingly in response to Ryan’s budget proposal and amid criticisms that the admin- istration isn’t doing enough to attack the deficit, IDFA says. The plan would reduce the federal budget deficit by about $4 trillion over the next 12 years, with cuts to domestic and defense spending contrib- uting about half of the deficit reduction. Part of the proposed House 2012 budget includes cuts to agricultural risk management tools, which has garnered criti- cism from the National Farmers Union (NFU). “The fiscal year 2012 bud- get passed by the House calls for cuts to agricultural risk management tools, including crop insurance, which are likely to be at the core of the next farm safety net, along with reducing direct payments,” says Roger Johnson, NFU presi- dent. “NFU has maintained all along that agriculture is more than willing to take our fair share of the cuts. Reducing the deficit requires shared sacrifice; unfortunately, the budget has some groups, such as agriculture, doing much more than their fair share.” Sens. Kent Conrad, D-N.D., and Max Baucus, D-Mont., in a letter to Obama earlier this month noted that funding Milk production in United States climbs in March Turn to BUDGET, page 30 D WASHINGTON — Milk production in the 23 major milk-producing states dur- ing March totaled 15.76 bil- lion pounds, up 2.4 percent from March 2010, according to data released this week by USDA’s National Agri- cultural Statistics Service (NASS). (All figures are rounded. Please see CMN’s Milk Production chart on page 31.) Turn to NASS, page 31 D Turn to ARTISAN, page 25 D ) Probiotic-fortified Cheddar: A winning ticket for business, health. For details, see page 4. ) International Dairy Show moving to biennial schedule. For details, see page 8. ) Total cheese in cold storage declines. For details, see page 30. ) NCIMS to consider farm rules at upcoming meeting. For details, see page 31. INSIDE
Transcript of Guest worker, labeling, budget bills ... - Cheese Market News
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
Dean Foods seeking buyer for Waukesha, Wis., plantDALLAS — Dean Foods Co. this week announced that it is actively seeking a buyer for its milk processing, selling, marketing and distribution business located in Waukesha, Wis.
Dean Foods agreed to sell the plant and related business as part of the March 29, 2011, settlement agreement reached with the U.S. Department of Justice (DOJ) and the states of Wisconsin, Illinois and Michigan.
The divestiture includes the 170,000-square-foot fluid dairy processing facility and equipment, the Golden Guernsey and La Vaca Bonita brands, as well as other related assets. (See “Depart-ment of Justice reaches settlement with Dean Foods Co.” in the April 1, 2011, issue of Cheese Market News.)
Interested bidders can contact Steve Schultz, vice president of corporate development at Dean Foods, at 214-72101414. CMN
Artisan cheesemaking enjoys ‘renaissance’ in United States By Johanna Nelson
MADISON, Wis. — For Joel and Carleen Weirauch, creating a sustain-able way of life was a big driver in their decision to pursue a farmstead sheep’s milk cheese operation in Petaluma, Calif. The couple, who have built a mobile dairy and creamery on 50 acres of certified organic pasture, are part of a sort of “renaissance” occurring within today’s U.S. artisan cheese industry.
“I think there is a large percentage of people active in the Slow Food movement, so there’s a very large consumer base that is demanding artisanal and specialty products,” says Carleen Weirauch. “There is a growing demand for interesting, unusual products that are difficult to find in the larger chain stores. Farmers and small businesses are responding to this market — if there is demand, usually somebody is going to find a way to fulfill it.”
The Weirauchs are among a small community of sheep’s milk cheese producers in California. Their flock is comprised of about 50 ewes and is monitored annually as part of the Animal Welfare Approved (AWA) program, which is designed to ensure compliance with rigorous animal welfare standards.
The ewes produce milk during the spring and summer, and the Weirauchs plan to obtain milk from an organic Jersey cow dairy dur-ing the off season.
Thus far Weirauch, who serves as Weirauch Farm and Creamery’s owner, cheesemaker and sheep herder alongside her husband Joel, says reception among the artisan cheese community has been very supportive — especially among the small number of sheep’s milk cheese producers in the area.
“We all know each other — we all share genetics and do whatever we can to improve our stock,” Weirauch says, noting the dairy sheep industry has only been in North America since about 1994. “Over the last few years, we’ve also tried to network with folks doing goat and cow’s milk cheese as well.”
In the years to come, Weirauch predicts there will be more consum-ers in California seeking out local products, thanks to collaborative efforts within the artisan cheese industry as well as continual product
Volume 31 April 22, 2011 Number 13
WASHINGTON — Several bills making their way through Con-gress this month would have an impact on the U.S. dairy industry, such as proposed new labeling requirements and a guest worker program.
Probably garnering the most spotlight is lawmakers continuing work on a federal budget agreement.
After inching close to a gov-ernment shutdown two weeks ago, lawmakers approved a fiscal year 2011 budget bill. The measure reduces spending by
Guest worker, labeling, budget bills moving through Congress
$38 billion over the remaining months leading to Sept. 30, 2011, and funds the government through that time period.
With the task of funding the remainder of this fiscal year behind them, last Friday the U.S. House of Representatives approved a fiscal year 2012 budget plan introduced by Rep. Paul Ryan, R-Wis., chair of the House Budget Committee.
Ryan’s budget includes $5.8 trillion in federal spending cuts over the next 10 years. The plan would convert Medi-care to a voucher program. As part of its Medicaid reform, the budget would change the entitlement program to block grants, allowing states to de-cide how to allocate Medicaid assistance.
The measure is now in the Senate, where it is facing strong opposition.
Senate Budget Committee Chair Kent Conrad, D-N.D., says he wants to consider a plan being developed by a bi-partisan “Gang of Six” senators as a framework for the Senate budget blueprint.
Leading the compromise are Sens. Mark Warner, D-Va., and Saxby Chambliss, R-Ga. Some type of debt-reduction strategy will have to be on
the table by early July; if by early July the debt ceiling has not been raised, the Treasury Department will be unable to continue to borrow money and will default on U.S. debt, according to the Interna-tional Dairy Foods Association (IDFA).
Sen. Tom Coburn, R-Okla., another member of the Gang of Six, has been trying to get Re-publicans to accept that some form of tax increases likely will be part of a deal, IDFA notes, adding a compromise likely will include elements both Democrats and Republicans will find fault with, whether they are cuts to entitlements or tax increases, because they may endanger incumbents’ chances for re-election in 2012.
“What the country needs to hear from the leaders in Washington is that we under-stand how big this problem is and that we’re willing to lose elections to do what’s best for the country, and that’s what’s not happening now,” Coburn says.
President Obama last week also unveiled a deficit reduction proposal, seemingly in response to Ryan’s budget proposal and amid criticisms that the admin-istration isn’t doing enough to
attack the deficit, IDFA says.The plan would reduce
the federal budget deficit by about $4 trillion over the next 12 years, with cuts to domestic and defense spending contrib-uting about half of the deficit reduction.
Part of the proposed House 2012 budget includes cuts to agricultural risk management tools, which has garnered criti-cism from the National Farmers Union (NFU).
“The fiscal year 2012 bud-get passed by the House calls for cuts to agricultural risk management tools, including crop insurance, which are likely to be at the core of the next farm safety net, along with reducing direct payments,” says Roger Johnson, NFU presi-dent. “NFU has maintained all along that agriculture is more than willing to take our fair share of the cuts. Reducing the deficit requires shared sacrifice; unfortunately, the budget has some groups, such as agriculture, doing much more than their fair share.”
Sens. Kent Conrad, D-N.D., and Max Baucus, D-Mont., in a letter to Obama earlier this month noted that funding
Milk production in United States climbs in March
Turn to BUDGET, page 30 D
WASHINGTON — Milk production in the 23 major milk-producing states dur-ing March totaled 15.76 bil-lion pounds, up 2.4 percent from March 2010, according to data released this week by USDA’s National Agri-cultural Statistics Service (NASS). (All figures are rounded. Please see CMN’s Milk Production chart on page 31.)
Turn to NASS, page 31 DTurn to ARTISAN, page 25 D
) Probiotic-fortified Cheddar: A winning ticket for business, health. For details, see page 4.
) International Dairy Show moving to biennial schedule. For details, see page 8.
) Total cheese in cold storage declines. For details, see page 30.
) NCIMS to consider farm rules at upcoming meeting. For details, see page 31.
INSIDE
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
MARKET INDICATORS
2 CHEESE MARKET NEWS® — April 22, 2011
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CLASS III PRICE (Dollars per hundredweight, 3.5% butterfat test)
YEAR2005200620072008200920102011
JAN 14.1413.3913.5619.3210.7814.5013.48
FEB 14.7012.2014.18 17.03 9.31 14.2817.00
MAR14.0811.1115.0918.0010.4412.7819.40
APR14.6110.9316.0916.7610.7812.92
MAY13.7710.8317.6018.18 9.8413.38
JUN13.9211.2920.1720.25 9.9713.62
JUL14.3510.9221.3818.24 9.9713.74
AUG13.6011.0619.8317.3211.2015.18
SEP14.3012.2920.0716.2812.1116.26
OCT14.3512.3218.7017.0612.8216.94
NOV13.3512.8419.2215.5114.0815.44
DEC13.3713.4720.6015.2814.9813.83
Cheddar Cheese and Dairy Product Prices
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 NASS at 202-690-2424.
3/26/11 4/9/11
Average price1
Minn./Wis. Other states U.S.Sales volume2
Minn./Wis. Other states U.S.
Cheese 500-lb. Barrels:Average price1
Minn./Wis. Other states U.S.Adj. price to 38% moisture Minn./Wis. Other states U.S.Sales volume2
Minn./Wis. Other states U.S.Moisture content Minn./Wis. Other states U.S.
4/2/11 4/16/11
$1.9507$1.9160$1.9192
987,0829,860,856
10,847,938
$1.9778$2.0316$2.0039
$1.8910$1.9267$1.9083
4,458,9934,186,9448,645,937
35.15%34.62%34.90%
$2.06563,433,078
*$1.5107*16,039,249
$.4585*8,676,752
$1.8670$1.7870$1.7934
917,85910,595,83311,513,692
$1.8691$1.8879$1.8788
$1.7921$1.7908$1.7914
4,215,4864,463,5888,679,074
35.34%34.64%34.98%
$2.03164,950,394
$1.559315,209,578
*$.4873*8,373,936
$1.7743$1.6827$1.6897
990,20711,883,93512,874,142
*$1.7502$1.8049
*$1.7787
*$1.6800$1.7124
*$1.6970
4,264,3344,649,6338,913,967
35.41%34.65%35.01%
$2.00364,740,812
$1.561717,286,487
*$.4673*6,321,475
Butter:Average price1 U.S.Sales volume2 U.S.
Nonfat Dry Milk:Average price1 U.S.Sales volume2 U.S.
Dry Whey:Average price1 U.S.Sales volume2 U.S.
For the week ended:
$1.7178$1.6384$1.6453
967,33510,281,39311,248,728
$1.6730$1.7235$1.7025
$1.6079$1.6319$1.6220
4,379,8346,152,446
10,532,280
35.49%34.52%34.92%
$1.97305,703,959
$1.576620,501,659
$.483810,305,511
(These data, which includes government stocks and is 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
7,867125,669
-405-870
10,229131,831
+259-814
-2,362-6,162
+3 -1
Weekly Cold Storage Holdings April 18, 2011 On hand Week Change since April 1 Last Year Monday Change Pounds Percent Pounds Change
Monday Tuesday Wednesday Thursday Friday
Chicago Mercantile Exchange
Apr. 18 Apr. 19 Apr. 20 Apr. 21 Apr. 22
Weekly average (April 18-21): Barrels: $1.5875(-.0095); 40-lb. Blocks: $1.6119(-.0101).Weekly ave. one year ago (April 19-23, 2010): Barrels: $1.3480; 40-lb. Blocks: $1.3705.
Cheese BarrelsPriceChange
Cheese 40-lb. blockPriceChange
Extra Grade NDMPriceChange
Grade A NDMPriceChange
Weekly average (April 18-21): Extra Grade: $1.8000(NC); Grade A: $1.6138(-.0342).
Grade AA ButterPriceChange
Class II Cream (Major Northeast Cities): $2.4470(+.0221)–$2.6261(+.0632).Weekly average (April 18-21): Grade AA: $2.0000(+.0105).
$1.5825NC
$1.6000-2
$2.0000NC
Sign up for our daily fax or e-mail service for just $104 a year. Call us at 608-288-9090.
$1.8000 NC
$1.6125NC
Cash prices for the week ended April 21, 2011
$1.5825-2 1/4
$1.6200-3/4
$1.8000NC
$1.6125-3/4
$2.0000NC
$1.5800-1/4
$1.6000NC
$2.0000NC
$1.8000NC
$1.6100-1/4
$1.6050-2
$1.6275NC
$1.8000NC
$1.6200NC
$2.0000NC
Market closed
Market closed
Market closed
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.**Numbers are preliminary.
APR11MAY11JUN11JUL11AUG11SEP11OCT11NOV11DEC11JAN12FEB12MAR12
0/1,953
48.0047.7547.0045.2545.5045.5044.5045.0045.5044.0043.0042.00
432404315170135138 123117110
333
DRY WHEY FUTURES for the week ended April 21, 2011 (Listings for each day by month, settling price and open interest)
48.0047.7546.7545.2545.5045.5044.5045.0045.5044.0043.0042.00
432404315170135138123117110
666
9/1,962
48.0047.7546.7545.2545.5045.5044.5045.0045.5044.0043.0042.00
432404315170135138123117110
666
0/1,962
Fri., April 15 Mon., April 18 Tues., April 19 Wed., April 20 Thurs., April 21**
48.0047.7547.0045.2545.5045.5044.5045.0045.5044.2543.0042.00
432404315170135138 123117110
333
5/1,953
48.0347.7547.0845.2545.5045.5044.5045.0045.5044.2543.0042.00
432404315168135138122116109
333
13/1,948
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.**Numbers are preliminary.
APR11MAY11JUN11JUL11AUG11SEP11OCT11NOV11DEC11JAN12FEB12
7/2,205
1.6821.6471.7201.7801.8101.8241.7951.7351.7121.6661.648
359263362147111140175240227
3130
CHEESE FUTURES* for the week ended April 21, 2011 (Listings for each day by month, settling price and open interest)
1.6821.6511.7301.7801.8151.8241.7951.7351.7121.6661.648
359263362147111140175240227
3130
0/2,205
1.6901.6391.7151.7801.8151.8301.8001.7401.7201.6661.648
359267366147115144179246232
3130
Fri., April 15 Mon., April 18 Tues., April 19 Wed., April 20 Thurs., April 21**
1.6861.6431.7121.7721.8061.8241.7901.7301.7121.6661.648
358263364143111140175240227
3130
2/2,202
1.6861.6891.7601.8101.8071.8251.7871.7251.7121.6661.648
358262364143111140175240227
3130
15/2,201 35/2,236
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
April 22, 2011 — 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 circle 1 on the FAST FAX form on page 32.
MARKET INDICATORSNEWS/BUSINESS
YOU CAN CUT YOUR HEDGING COSTS TRADE WITH GPC FOR $3.41 PER SIDE! Class III Milk ! Class IV Milk ! Whey ! Cheese! Cash Settle Butter ! NFDM ! Options! Trade Electronically $3.41 Side*
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Pentair to acquire division of Norit HoldingMINNEAPOLIS — Pentair Inc. has entered into a definitive agreement to acquire the Clean Process Technologies (CPT) division from privately-held Norit Holding B.V. for approximately $705 mil-lion, plus net debt at closing.
Pentair says it expects the net debt at the time of closing to be minimal and plans to fund the transaction with a combination of cash, revolving credit facility funding and investment grade financing.
“With leading membrane technologies, CPT provides components, systems and services that will broaden and deepen our capabilities in desalination, water reuse and high-efficiency industrial applica-tions — and enable us to provide more
integrated solutions to our customers,” says Randall Hogan, Pentair chairman and CEO.
“This acquisition will position Pentair as a leader in the attractive food and beverage sector, where CPT’s expertise is highly valued, and will meaningfully strengthen our presence in fast growth regions, including China, Latin America and the Middle East,” he adds.
The transaction is expected to close in the second quarter of 2011, subject to satisfaction of customary conditions and applicable regulatory approval.
CPT specializes in membrane so-lutions and clean process technolo-gies in the water and beverage filtra-tion and separation segments. CMN
Dry Products* April 22, 2011
DRY BUTTERMILK(FOB)Central & East: $1.3650-$1.6200.(FOB) West: $1.5000(+4)-$1.5400; mostly $1.5100(+1)-$1.5300(+1).
EDIBLE LACTOSE(FOB)Central and West: $.3500-$.5500(+1); mostly $.4200-$.4800.
NONFAT DRY MILKCentral & East: low/medium heat $1.5500-$1.7500; mostly $1.5500-$1.6200. high heat $1.6000-$1.8200.West: low/medium heat $1.5200(+2)-$1.6500; mostly $1.5800(+3) -$1.5900. high heat $1.6000(+2)-$1.8000(+1).Calif. manufacturing plants: extra grade/grade A weighted ave. $1.5511(+.0341) based on 12,890,486 lbs. Sales to CCC: 0 lbs.
WHOLE MILK POWDER (National): $1.8200-$2.0400.
DRY WHEYCentral: nonhygroscopic $.4000-$.5125; mostly $.4150-$.4700.West: nonhygroscopic $.4525-$.5975(-1/4); mostly $.4550-$.5150(-1/2).(FOB) Northeast: extra grade/grade A $.4575-$.5425(-1 1/4).
ANIMAL FEED (Central): Whey spray milk replacer $.3050-$.4525.
WHEY PROTEIN CONCENTRATE (34 percent): $1.1500-$1.5800; mostly $1.1800-$1.5100.
CASEIN: Rennet $4.7600-$5.1400; Acid $4.7000-$5.1200.
*Source: USDA’s Dairy Market News
Advanced Prices and Pricing Factors
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:
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 $19.75.1/ 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
May 2011 $12.49/cwt. $9.26/cwt. $12.49/cwt. $2.1984/lb. $13.19/cwt. $1.4656/lb.
$1.9869/lb. $1.5698/lb. $1.6768/lb. $0.4775/lb.
April 2011 $11.94/cwt. $11.94/cwt. $11.63/cwt. $2.2583/lb. $12.33/cwt. $1.3700/lb.
$2.0363/lb. $1.4733/lb. $1.9735/lb. $0.4618/lb.
Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. #The total contracts traded for Class III milk includes electronically-traded contract volumes.*Total Contracts Traded/Open Interest reflect additional months not included in this chart.**Numbers are preliminary.
Total Contracts Traded/Open Interest
Cash-Settled NDM
157.25160.50161.50160.50158.90153.75150.50143.53143.50
346332394423366229177
9799
57/2,463
APR11MAY11JUN11JUL11AUG11SEP11OCT11NOV11DEC11
Cash-Settled Butter
APR11MAY11JUN11JUL11AUG11SEP11OCT11NOV11DEC11
Total Contracts Traded/Open Interest
565450431429428303173160172
161/3,111
200.75200.25202.50203.00204.75205.00205.00203.75192.00
157.25160.50162.50160.75159.00155.50152.00145.00143.50
346337401423366229179
97100
13/2,478
199.75199.78202.98203.50205.00207.00207.00205.00194.00
563452439438442302175161173
91/3,145
157.25160.50162.50160.75159.00156.50154.48147.50146.00
346337409423366245183
98103
42/2,510
199.75199.78202.98203.50205.00206.25207.00205.00195.00
562452439438442303175161175
8/3,147
Fri., April 15 Mon., April 18 Tues., April 19 Wed., April 20 Thurs., April 21**
Fri., April 15 Mon., April 18 Tues., April 19 Wed., April 20 Thurs., April 21**
Total Contracts Traded/Open Interest
Fri., April 15 Mon., April 18 Tues., April 19 Wed., April 20 Thurs., April 21**
APR11MAY11JUN11JUL11AUG11SEP11OCT11NOV11DEC11JAN12FEB12MAR12APR12MAY12JUN12JUL12AUG12SEP12OCT12
Class III Milk#*
16.7416.3616.9717.3617.7217.8717.5416.9416.7516.2516.0315.8716.0516.0216.0016.1016.0416.0416.04
5,4215,6094,4733,4143,2383,1972,8862,6172,675
400305237138124108
84828791
945/35,322
16.7416.4117.1517.5217.8217.9917.6217.0216.8416.3016.0315.9916.0516.0216.0016.1016.1016.0416.04
5,4135,5774,5743,4163,2453,1992,8882,6202,680
403306243140126110
86928992
496/35,438
16.8016.2716.8817.4017.7517.9117.6217.0016.7516.3016.0616.0016.0616.0216.0416.0616.0616.0616.05
5,4115,4764,5993,4183,2483,2002,8872,6232,691
403306243140126110
88928992
830/35,383
Total Contracts Traded/Open Interest
Class IV Milk
APR11MAY11JUN11JUL11AUG11SEP11OCT11NOV11DEC11
20.0120.0020.2120.1520.1019.7519.4018.7518.11
412464524622586515391302209
20.0120.0520.3020.1620.1020.0019.7018.8018.40
412471535624587518417332242
120/4,138
20.0120.0520.3020.1620.1020.0019.6218.9518.60
412471535624587519447362274
222/4,025
CME FUTURES for the week ended April 21, 2011
Fri., April 15 Mon., April 18 Tues., April 19 Wed., April 20 Thurs., April 21**
94/4,231
16.7416.3516.9317.3017.6917.8217.5316.9316.7316.2516.0315.8516.0015.9816.0016.0516.0416.0116.04
5,4395,5674,3913,3823,2063,1742,8662,6032,664
396301232138119103
75788287
20.0120.0320.0020.0119.8119.3519.1518.5017.95
402448508598559494373272194
157.25160.50159.00160.00156.40151.25148.00141.03141.00
346322381422361226176
9299
200.75200.50202.00203.00203.75204.00204.00203.75188.75
567448408411366300173149168
108/2,990
34/2,425
97/3,848
700/35,030
16.7416.7817.4217.6817.8117.9517.6216.9816.8016.3216.1016.0016.0916.0716.1016.0516.0116.0516.00
5,4395,6614,4103,3933,1993,1712,8642,6012,661
388296231138119103
75788287
847/35,122
20.0119.9819.9520.0119.7019.1619.1018.4017.90
400440509593554489368257189
25/3,799
157.25160.50159.00160.00155.55151.00148.00141.00141.00
346319378405359225174
9299
15/2,397
200.00198.00201.00203.00202.50202.50202.50198.78188.75
567448403420357299171148168
60/2,981
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
4 CHEESE MARKET NEWS® — April 22, 2011
Dr. Mali Reddy serves as president
of the American Dairy and Food Con-
sulting Laboratories and International
Media and Cultures (IMAC Inc.), Den-
ver, Colo. He holds several degrees
including M.S. and Ph.D. degrees
from Iowa State University in food
technology and microbiology. He is a
guest columnist for this week’s issue
of Cheese Market News®.
Perspective:Cheese Technology
Probiotic-fortified Cheddar cheese: a winning ticket for business, health
G U E S T C O L U M N I S T S
Joseph O’Donnell is executive
director of the California Dairy Re-
search Foundation. He contributes
this column exclusively for Cheese Market News®.
Perspective:Industry Innovation
Access to milk is amatter of national security
The popularity of Cheddar as a table cheese in the United States has been on the decline.
This is due, in part, to consumers’ concerns about high saturated fat and salt. According to the standard of identity for Cheddar, the moisture should not be greater than 39 percent, and fat on a dry basis should not be lower than 50 percent. Cheddar with 37 percent moisture and 1.5 percent salt will have 31.5 percent saturated milk fat (assuming its F.D.B. is
50 percent). If you want to call it Cheddar, there is no way to reduce the fat unless you make it reduced calorie, reduced fat, lite or fat-free.
Low-sodium Cheddar can be made and yet it will be high in saturated fat and still may not taste good. The major problem with low-calorie, lowfat or low-sodium Cheddar cheese is the reduced intensity of flavor, inferior taste and mouthfeel. Also, such lowfat products distinctly taste bit-ter because large amounts of milkfat are
required to cover up some of the natural bitter peptides liberated from casein breakdown, especially with aged cheese. On the sideline, despite attempts by vari-ous researchers to introduce substitutes to milkfat and salt, the taste of Cheddar could never be reproduced.
Many health-conscious people, even those without medical conditions, talk about not eating Cheddar because it is high in fat and salt. But when fat and salt are reduced, they will not eat such cheese because it lacks flavor and doesn’t taste good. One way to get around this problem is to improve the healthful aspect of cheese without having to reduce fat and salt. This can be accomplished through fortifying the cheese with probiotics. Since probiotics are becoming extremely popular, it is great to incorporate them to counteract the negative health aspect of high saturated fat and salt in Cheddar. In consumers’ and their physicians’ points of view, any food which improves the health is preferred.
Let us talk a little about what probiotics are, and how they improve human health. What are probiotics? Probiotics are bacte-ria or microorganisms that are beneficial to the health of an individual. As early as 1907, the Nobel Laureate Dr. Metchnikoff hypothesized and discovered that lactic acid-producing bacteria, administered orally, stopped intestinal ailments in hu-mans. They are essentially the opposite of antibiotics, which are inhibitory to other
bacteria (including probiotic bacteria). The word “probiotic” is derived from two Greek words, “pro” and “bios,” meaning “for life.” In 1989 Dr. Fuller redefined probiotics as live microbial supplements that bestow beneficial effects on the host by improving the intestinal microbial balance.
Modern foods which contain preser-vatives and even physician-prescribed antibiotic drugs are not beneficial to gas-trointestinal flora, especially probiotics. If all or most of the probiotics are destroyed in the gastrointestinal tract, the human life is in jeopardy. Consequently, in order to maintain and ensure proper gastroin-testinal eco-flora, continuous or periodic supplementation of probiotics is a must.
The following are some of the benefits of probiotics to improve health:
-Half of the world population is
unable to utilize lactose (milk sugar). Lactose malabsorption can be corrected by probiotics. Lactose is a disaccharide made of glucose and galactose. A person who lacks the lactase enzyme in the gut cannot digest lactose and thus develops clinical symptoms of typical lactose intol-erance such as flatulence and diarrhea. Probiotics, especially L. acidophilus, have the Beta galactosidase enzyme which can break down the disaccharide lactose into the simple sugars glucose and
Beverages account for almost half of all food sales and that number is growing. That should bode well for dairy with its superstar nutritional profile, but let’s take a look and see where the real opportunities exist in this competitive category.
As we break out the beverage in-dustry the first cut is alcoholic vs. non-alcoholic,then soft drinks vs. nutritious beverages. Discussing the differences among these categories would yield an endless debate. Let’s focus on just one element — margins.
Even though wine and beer deliver a number of nutrients in addition to
alcohol and responsible people view wine and beer as a normal accompani-ment to any meal, the whole aura of alcohol commands price margins that put these beverages at the top of the entire category.
Soft drinks, sweetened with sugar, corn syrup or artificial sweeteners are usually consumed with a meal or during the day as a refreshing beverage. Let’s include water in that category too. These beverages contribute from zero to about 150 calories per serving and little else to the diet. Actually, other ingredients in some of these beverages include phosphoric acid, which can create a bit
of havoc with our calcium balance. In any event, getting back to our margin concept, these products have such low ingredient costs that the margins are also high. All the sports drinks fit here as well. These products represent the ultimate in reductionist nutrition. They are formulated from pure nutrients (not whole foods) to contain various electrolytes (minerals), protein and other components intended to improve physical performance. Margins are again high.
Now let’s look at beverages that actually deliver some nutrition, namely dairy and fruit. Fruit beverages can be all natural or some combination of soft drink and fruit juice. The primary nutri-ent in most fruit drinks is sugar in some form. Various vitamins and minerals and less well-defined components also are touted in the marketing of fruit juices. Although more expensive to produce than fabricated soft drinks, fruit juices are less expensive to make than dairy beverages. Also, fruit juices, while seen as healthy, do not enter the market as a valid substitute for the complete nutritional package that milk offers.
Of all beverages, milk comes in as a basic food; a fundamental part of most family meal plans. Milk is purchased by the poorest of the poor and richest of the rich. The intrinsic value of milk separates it entirely from all other beverages. Because milk is so impor-tant to the health of all consumers, it is considered important to national security and stability. Because of this
seminal position in our food system, profit margins for milk are low. The bottom line here is that milk with its standards of identity will always have tight margins.
Milk production is complex — from feed and livestock management to the final shipping of a highly perishable product. Ultimately, the most nutritious beverage can be the most costly to pro-duce. Yet it often sells for less than other beverages — including water. Why? If pressed, our country could survive and remain healthy without all other beverages except milk. Without milk and its unique package of bioavailable nutrients, the health of our population would be compromised. Yes, milk is a matter of national security.
In addition to dairy’s health benefits, milk production and processing also benefit our economy greatly. Each part of production and processing is associ-ated with a job. I truly believe that the impact of a glass of milk on the physical and economic health of a population far exceeds that of any other beverage. Historically, this has been recognized by federal and state agencies that fund food research and by universities that conduct research. The dairy industry sacrifices large profit margins to maxi-mize the availability of milk to everyone living in the United States.
Nature has given us the answers to so many questions in nutrition. Milk is the one product that nature determined to be the most efficient way to deliver
Turn to REDDY, page 6 D
Turn to O’DONNELL, page 7 D
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
April 22, 2011 — CHEESE MARKET NEWS® 5
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NEWS/BUSINESS
AMPI sees continued sales growth in 2010BLOOMINGTON, Minn. — Sales growth continued in 2010 for Associated Milk Producers Inc. (AMPI), a dairy market-ing cooperative owned by 3,000 dairy producers.
According to AMPI, more than half of the cooperative’s $1.7 billion in sales came from consumer-packaged dairy products. AMPI processes milk, manufactures dairy products and packages them for customers at 12 plants throughout the upper Midwest.
“AMPI product sales have grown for five consecutive years,” says Ed Welch, AMPI president and CEO.
Sales of packaged and processed cheese grew 5 percent, and butter sales were up 7 percent. Other areas of increased product sales including pudding and cheese sauce, 10 percent, 10 percent, and ice cream mix, 19 percent.In addition, Welch says the industry saw increased global demand for dairy pro-teins, which led to improved milk prices following the depressed markets of 2009. AMPI sold more than 28 percent of its
powdered dairy products internationally.Despite strong sales and profitable
operations, a year-end market drop de-valued product inventory and resulted in $1.5 million loss for the cooperative. AMPI notes members still shared $12.9 million from the previous year’s earnings and member equity.
AMPI Chairman of the Board Paul Toft also outlined the cooperative’s policy priorities.
“We stepped up our policy-making ef-forts this past year, urging lawmakers to enact legislation that would decrease milk price volatility and increase dairy farmer profitability,” he says.
Additional AMPI highlights include: producing 6 billion pounds of milk; investing in the cooperative’s manufac-turing network, upgrading whey drying, cheese processing and butter packaging equipment; and serving customers such as McDonald’s, Sysco and ALDI, who continue to rely on AMPI to make the product marketed under their labels. CMN
Organic Valley meeting highlights growth in sales, membership, farmer-owner goals
Organic Valley last week held its annual meeting in La Crosse, Wis., which highlighted the cooperative’s strong sales, growth in membership and achievements of its farmer-owners.
More than 450 farmer-owners at-tended this year’s meeting, the highest farmer attendance to date. Farmers traveled from 24 states and Canada.
Organic Valley is in a strong financial position, thanks to conservative fiscal and production strategies, the company says. The co-op achieved $619 million in 2010 sales and projects approximately $627 million in 2011 sales.
Organic Valley says its regional approach is stronger than ever, with region-specific labels that support local economies and shorten farm-to-table distance.
Membership at Organic Valley grew more than 23 percent in 2010. Farmer-members now are in 35 states and three Canadian provinces. Many of these
new members are family farmers who approached Organic Valley and were at risk of losing their farms, according to the cooperative.
During the annual meeting, Organic Valley recognized 512 of its farmer-owners with Outstanding Quality Awards in various production catego-ries from dairy and eggs to produce and meat.
“We’re proud to honor more than 30 percent of our farmer-members who have earned our quality awards, which reflects the pride our members have in producing the best qual-ity organic products,” says George Siemon, CEO and a founding farmer of Organic Valley. “These and other dedicated farmer-members further strengthen our cooperative, a theme present at this year’s annual meet-ing as we celebrated past successes and made collective decisions for the future benefit of our farmer-members and the organic industry.” CMN
FDA releases ‘Strategic Priorities 2011-15’WASHINGTON — FDA this week released the final version of a stra-tegic priorities document outlining the goals that will guide the agency and its 12,000 employees through 2015.
“It’s no secret that the FDA’s re-sponsibilities have increased signifi-cantly over the past several years,” says Margaret A. Hamburg, FDA commissioner. “We must continue to build a stronger, more effective agency and, as this document out-lines, do so in several specific ways.”
The 50-page document, “Strategic Priorities 2011-2015: Responding to
the Public Health Challenges of the 21st Century,” provides a vision for FDA that includes:
science that draws on innovations in science and technology to help ensure the safety and effectiveness of medical products throughout their life cycles;
system focused on prevention and improved nutrition; and
needs of special populations.F o r m o r e i n f o r m a t i o n ,
visit www.fda.gov. CMN
MSU awarded grant to study E. coli ‘shedding’ — Roger
Beachy, director of USDA’s National Institute of Food and Agriculture (NIFA), recently announced the award of a $2.5 million research grant to Michigan State University (MSU) to reduce “shedding” of shiga toxin-producing E. coli (STEC).
The project, led by Dr. Shannon Manning, assistant professor of mi-crobiology and molecular genetics at MSU’s College of Natural Science, will study shedding — or the release of E. coli from the digestive tract — of cattle and develop strategies to reduce the shedding, with the intent of decreasing the number of illnesses
caused by STEC.STEC is a leading cause of food-
borne and waterborne infections. Most outbreaks are caused by contact with fecal materials from cattle and other ruminant animals, yet little is known about shedding from these animals.
With the grant from NIFA, Man-ning says her team of researchers will examine the host as well as genetic, microbial and environmental factors associated with STEC shedding.
The grant was awarded through NIFA’s Agriculture and Food Research Initiative (AFRI).
For more information vis-it www.nifa.usda.gov. CMN
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
6 CHEESE MARKET NEWS® — April 22, 2011
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galactose, and thus reduce the discomfort of lactose intolerance. Recently more and more people are fructose intolerant and proper probiotics should greatly improve this discomfort as well.
Antibiotic-induced diarrhea has been suc-cessfully controlled by probiotics. Specific strains of Lactobacillus and Bifidobac-terium have been used in children and adults for therapy of intestinal infections.
-ease: The fact that probiotic supplementa-tion inhibits cholesterol concentrations in the blood and increases the excretion
of cholesterol in the feces has been well documented. Cholesterol absorption is interfered within the gut partly due to assimilation of cholesterol by probiotic organisms. In addition, probiotics (Bifi-dobacterium longum) deconjugate bile salts with aid of bile salt hydrolase, and thus increase the excretion of free bile salts in the feces. This has the potential to reduce serum cholesterol because the replacement of bile salts would require the utilization of some cholesterol in the body. Thus, the resultant hypocholesterolemia may reduce the incidence of coronary heart disease.
This is a very important activity induced by probiotics. Immune-stimulating activity is attributed to their bacterial cell envelope constitu-
ents such as peptidoglycan. Results of vari-ous investigators indicate that probiotics stimulate the production of antibodies, enhance the systemic activity of macro-phages, and increase interferon levels and the number of killer cells, thus improving the immunity.
Dietary intake of lyophilized cultures of Bifido-bacterium longum has significantly sup-pressed the development of azoxymeth-ane-induced aberrant crypt foci (ACF) formation in the colon. The same group of scientists elucidated the ability of the probiotic strains to inhibit the incidence of colon tumors. Some of the non-probiotic type of gastrointestinal flora will convert procarcinogens to carcinogens, which are the causative agents for cancer. Some of
the end products of digestion are pro-carcinogenic. Procarcinogenic materials may not cause cancer; however, if they are acted upon by certain microbial enzymes in the gastrointestinal tract, they will be converted to carcinogens. Probiotics suppress the growth of these undesirable enzyme-producing non-probiotic bacteria, and thus reduce the chance of converting procarcinogens to carcinogens.
Helicobacter pylori is a gram-negative spiral-shaped bacterial pathogen that colonizes in the area between the mucous layers of stomach and gastric epithelium. It is now recognized as the causative agent for chronic gastritis, which is a major factor for causing gastric and duodenal ulcers, gastric atrophy and gastric cancer. The International Agency for Research on Cancer has classified H. pylori as a Group I carcinogen. This is the first patho-genic bacterium to be classified as such. Methicillin-resistant Staphylococcus aureus (MRSA) and antibiotic-resistant Clostridium difficile are categorized as lethal hospital-associated infections kill-ing more than 30,000 people annually in the United States alone. Limited research data indicate that even these bacteria can be inactivated or suppressed with the use of proper probiotics.
Although probiotics have made a big stride in the medical field, people should not forget their genesis. They are all dairy-associated organisms. For example, several beneficial species of Streptococcoi and Lactobacilli have been used as dairy starter cultures for several centuries. Since yogurts have made it in a big way by incorporating probiotics as part of their starters, why not Cheddar cheese? Even though the fruit-base commercial yogurts are loaded with sugars (which are considered non-healthy), people prefer them for their therapeutic benefit from live starter bacteria cultures and/or probiot-ics. The addition of probiotics to Cheddar may greatly improve its acceptance in this health conscious era, provided it is advertised properly like yogurt.
In fact, fortified probiotic bacteria survive better in cheese than yogurt. The health benefits of probiotics have to be explained to consumers through advertise-ment and education. Probiotic bacteria are GRAS (Generally Regarded as Safe), according to FDA, and thus can be used in cheese, using proper technology, as part of starter cultures. Probiotics can be included in the bulk starter, can be added through secondary starters, or can be dusted onto a consumer pack block cheese (prior to packing) or can be included into an anti-caking agent and then applied onto diced or shredded Cheddar.
Business can only move forward with innovation. Let us innovate and reinvigorate Cheddar to bring it back as an all-time favorite table cheese by incorporating probiotics to improve its positive healthful aspects. CMN
The views expressed by CMN’s guest columnists are their own opinions and do not necessarily reflect those of Cheese Market News®.
REDDYContinued from page 4
G U E S T C O L U M N I S T
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
April 22, 2011 — CHEESE MARKET NEWS® 7
For more information circle 5 on the FAST FAX form on page 32.
NEWS/BUSINESS
wholesome and complete nutrition to mammals – it is our job, as researchers, to determine how that is done.
Once we understand how nature came to construct milk, we can apply those same principles to other food systems. The specialized carbohydrates in milk, milk’s unique proteins and complex fats all have tremendous opportunities for those in food research. Healthful compo-nents of milk could be dried or concen-trated and stabilized for delivery to any corner of the globe, literally delivering life-saving nutrition to the most vulner-able populations. It’s a heady prospect.
Companies with high profit margins are lucky funding for research and de-velopment can be easy. It is less simple for industries like dairy that find them-selves in the volume business. Research costs money, but raising prices defeats the purpose of delivering accessible health to the largest number of people.
We must recognize how systems of delivering basic commodities work in supporting economics and health. With this recognition, resources for continued dairy food research can be identified in the broader society and we can all continue to drive malnutri-tion and poverty from all lands. It’s a matter of health and security. CMN
The views expressed by CMN’s guest columnists are their own opinions and do not necessarily reflect those of Cheese Market News®.
O’DONNELLContinued from page 4
Arla to consolidate production, expand plants Arla Foods
amba recently approved a new structure plan that will close one production facil-ity in Sweden and expand the capacity of two Danish facilities.
As a result of tough competition in international markets for yellow cheese, Arla’s board of directors approved a plan that will consolidate part of the yellow cheese production at plants in Nr. Vium and Taulov, Denmark. The board ap-proved an investment of approximately $118 million that will expand the pro-duction capacity in these two plants.
Meanwhile, Arla will close its pro-cessing facility in Falkenberg, Sweden, and transfer the plant’s cheese produc-tion to the Nr. Vium facility in Denmark.
Company officials say milk volumes have been declining in Sweden since 2003, and to avoid empty plants, Arla has to react to the overcapacity problem at the Swedish facilities, which has con-tributed to increased production costs.
“The challenge in Sweden is to fill our dairies,” says Jais Valeur, executive vice president, Arla Foods amba. “To avoid empty plants a few years down the line, we have to react now. If we don’t, production costs will be higher
and the milk price paid to our owners will fall. And that’s not in our interests.”
In addition to the closure of the Falkenberg facility, Arla expects the consolidation plan eventually will lead to the closure of two facilities in Klovborg and Hjorring, Denmark. These measures will secure Arla’s future production of a broad range of yellow cheeses at com-petitive prices, company officials say.
Arla plans to expand its Nr. Vium plant over the next 12 months and its Taulov plant over a three-year period, resulting in more efficient production. The planned investment will increase the capacity at Nr. Vium by 34 percent and the capacity at Taulov by more than 60 percent. CMN
FDA launches consumer-friendly search engineWASHINGTON — FDA recently launched an online search engine to allow consumers to search for food and other product recall information.
FDA says that to provide greater ease of use for consumers, the search results provide data from news releases and other recall announcements in the form of a table, which organizes the informa-tion (since 2009) by date, product brand name, product description, reason for recall and the recalling firm.
The table also provides a link to the news release on each recall for more detailed information. The previous display provided links in a scroll-down format, FDA notes.
Under the Food Safety Moderniza-tion Act, FDA was required to provide a consumer-friendly search engine within 90 days after the law went into effect.
“Recalls, mandatory or otherwise, are serious, and we must do everything possible to make it easier for people to know about these recalls so they can take all appropriate steps to protect themselves and their families,” says Mike Taylor, FDA deputy commissioner for foods. “We encourage people to check out our new recall search page for themselves and use it whenever they have a question about a recall.”
For more information, visit www.fda.gov/Safety/Recalls/default.htm. CMN
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Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
8 CHEESE MARKET NEWS® — April 22, 2011
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EVENTS
UW-Madison to offer cheese grading courseMADISON, Wis. — The University of Wisconsin-Madison will hold its Cheese Grading & Evaluation Short Course June 7-9 at Babcock Hall in Madison, Wis.
The course is sponsored by the Wis-consin Center for Dairy Research, the Department of Food Science and the College of Agricultural & Life Sciences. It is intended for cheesemakers, pro-duction supervisors and quality control personnel interested in assessment of cheese quality.
The three-day course will cover the principles and practices used in grading natural cheeses. It will be structured around the cheese grading standards
covered by Wisconsin Ag Chapter 81 and USDA Grading Standards.
Cheeses used in the grading lab sessions will be selected to show the majority of flavor, body, texture, color and appearance defects found in the industry today.
The registration fee is $375 and covers instructional materials, cheese, supplies, speaker and staff expenses, breaks and lunches. The deadline to enroll is May 29.
For additional information, contact CALS Conference Servic-es at 608-263-1672 or visit www.p e o p l e w a r e . n e t / 2 7 2 3 . C M N
Condoleezza Rice among guest speakers for IDDBA’s 2011 Dairy-Deli-Bake showMADISON, Wis. —The International Dairy-Deli-Bakery Association (IDDBA) has announced the speaker lineup for Dairy-Deli-Bake 2011, which will be held June 5-7 in Anaheim, Calif., at the Anaheim Convention Center.
Condoleezza Rice will provide a sweeping look at global affairs during her tenure as the 66th Secretary of State of the United States, and as the National Security Advisor. She will share stories of her experiences that will help to illuminate the interrelationship of global events and leaders.
Guy Fieri also will present “From Daytime to Primetime — A Food Pas-sion.” Fieri was a contestant and winner of The Next Food Network Star’s second season. Today, he hosts three shows on Food Network including Guy’s Big Bite and Diners, Drive-ins, and Dives. He also is the host of the prime time game show, Minute To Win It and is the owner/operator of five restaurants in Northern California. He will share stories on how a passion for food, creating fun experiences and sharing ideas can attract and keep customers.
This year’s speaker lineup also will include Joe Montana, who will present“Driving Performance Excellence: In
Sports, Business & Life.” As quarterback, Montana led the San Francisco 49ers to four Super Bowl wins and, in the process, captured three Super Bowl MVP awards. He will bring the lessons learned on the playing field to the business arena and life.
Additional speakers will include Captain Chesley “Sully” Sullenberger, who will present “Making an Impact;” Futurist Lowell Catlett, who will discuss “2020: A Vision for Tomorrow;” and Harold Lloyd, president of Harold Lloyd Presents, who will present “The Super-market Department Manager: What Makes Them Tick; What Turns Them on?” In addition, Marcus Buckingham, who spent 17 years with the Gallup Or-ganization, will present “Great Leader or Great Manager: The One Thing You Need to Know;” Sinbad, comedian, will present “Weighty Issues: The World of Sinbad;” and John Gerzema, chief in-sights officer at Young & Rubicam and author of Spend Shift and The Brand Bubble, will present “Spend Shift: Brands and the Post-Crisis Consumer.”
For a complete schedule of events, reg-istration or housing form and information on exhibiting, or contact IDDBA at 608-310-5000 or visit www.iddba.org. CMN
Alltech to hold symposium May 22-25LEXINGTON, Ky. — Alltech will hold its 27th International Animal Health and Nutrition Symposium, “The Game Chang-ers: Creative Concepts for Agribusinesses to Respond to Relentless Commodization and to Innovate for a Greener Future,” May 22-25 in Lexington, Ky.
The symposium will address chal-lenges such as the rising price of corn and the market value of milk, providing insights and solutions.
Attendees will have the opportunity to hear from and interact with dairy industry experts during the seminars. Topics will include “Managing the media myth: What is the truth behind the carbon footprint of modern dairy production?” “Towards farm sustainability — Can we benchmark milk production economics?” and “The power of dealing with the end consumer — Should farmers commercialize their own milk?”
For more information, e-mail Alltech at [email protected] or visit www.alltech.com. CMN
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International Dairy Show moving to biennial schedule after 2011WASHINGTON — The board of the International Dairy Foods Association (IDFA) recently voted to move IDFA’s International Dairy Show (IDS) to a biennial schedule following this year’s show Sept. 19-21 in Atlanta.
According to Neil Moran, senior vice president of finance, administration and trade show for IDFA, IDS originally was created as an annual event. However, based on feedback, attendee evalua-tions, discussions with IDFA members and market research, the IDFA board has decided to adjust the format to better serve its members’ and partners’ needs.
The 2013 show is slated to be held in Chicago.
For more information, v is -it www.dairyshow.com. CMN
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
April 22, 2011 — CHEESE MARKET NEWS® 9
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Inaugural Global Cheese Technology Forum will be held Oct. 11-12RENO, Nev. — Cheese and whey pro-duction in the western United States and its place in the global economy will be the theme of this year’s Global Cheese Technology Forum, Oct. 11-12 at the Peppermill Resort in Reno, Nev.
The conference is being organized by the Dairy Products Technology Center at Cal Poly and the Western Dairy Center at Utah State University.
The forum will assemble industry ex-perts who will provide current technical information on major issues that face today’s cheese manufacturers.
“The two-day forum is designed to provide the latest technical information relevant to the cheese industry in the
western United States, provide informa-tion on current regulatory and marketing issues related to cheese and provide a forum to discuss educational and future challenges of the cheese industry,” says Nana Farkye, Cal Poly dairy science professor. “The forum will be useful for cheese industry middle to upper man-agement, suppliers, distributors and end users, food research and development professionals and academics.”
Don McMahon, director of the West-ern Dairy Center at Utah State, also says that the cheese industry in the western United States has grown tremendously in the last 20 years, yet opportunities for company leaders to hear about technical
developments have diminished.“As the premier cheese research
programs in our region, the Dairy Prod-ucts Technology Center at Cal Poly and the Western Dairy Center at Utah State University have organized an event to provide the latest technical information relevant to leaders in today’s cheese industry,” he says.
The forum is designed for the cheese industry in the western United States, but is open to cheesemakers everywhere.
For more information or to reg-ister, contact Laurie Jacobson at 805-305-5056, e-mail: [email protected] or visit www.global-cheesetechnologyforum.org. CMN
Symposium on raw milk to be held in May in MinnesotaBLOOMINGTON, Minn. — The Farm-to-Consumer Foundation and the Foun-dation for Consumer Choice will co-host the third annual Raw Milk Symposium: Producer-Consumer-Choice in Bloom-ington, Minn., May 7 at the Embassy Suites Hotel.
The symposium is open to the public. Farmers and consumers are especially invited to learn more about the safety and health benefits of raw milk as well as the relationship be-tween producers and consumers, event coordinators say.
Featured speakers will include Ted Beals, a retired pathologist with an interest in the relationship of raw milk to the specific facts surrounding its safety; Sally Fallon Morell, author of the cookbook, Nourishing Traditions and president of the Weston A. Price Founda-tion; David Gumpert, author, journalist and reporter; Sylvia Onusic, nutritionist and writer/journalist; Michael Schmidt, trained in biodynamic farming in Ger-many; Catherine Shanahan, author of the books Deep Nutrition and Food Rules; and Alan Watson, author of 21 Days to a Healthy Heart and Cereal Killer.
Interested parties may register online at RawMilkSymposium.org or by contacting 703-208-3276. The registra-tion fee is $40 to attend the symposium. A lunch ticket also is available for $25, and the fund raiser reception and din-ner is $100.
For more information about the event or sponsorship and exhib-it opportunities, contact Christie Boyd, symposium coordinator, at 513-407-8899, e-mail: [email protected]. CMN
Wisconsin Specialty Cheese Institute to hold annual golf outing June 16VERONA, Wis. — The Wisconsin Specialty Cheese Institute (WSCI) will hold its 11th annual golf outing June 16 at the University Ridge Golf Course in Verona, Wis.
The golf outing will feature a scramble format with a shotgun start scheduled for 12:30 p.m.
The day also will include hole contests, a grand prize raffle and door prizes, awards and dinner.
Those interested should reserve one or more foursomes.
The registration fee is $150 per golfer and includes greens fees, golf cart, practice range balls, yardage guides, personalized bag tags, box lunch and tailgate cookout.
For additional information, con-tact WSCI at 262-740-2180, e-mail: [email protected]. CMN
EVENTS
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
10 CHEESE MARKET NEWS® — April 22, 2011
NEWS/BUSINESS
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WILMINGTON, Mass. — Koch Mem-brane Systems (KMS) has prepared a white paper on the theory and applica-tion of crossflow membrane filtration, a technique for maintaining stable filtra-tion rates in process streams that have high concentrations of solids.
Crossflow membranes can be pro-vided in a variety of configurations to suit specific needs. According to the article, many simple filtration processes use a dead-end technique — the flow of liquid to be filtered is directed per-pendicular to the filter surface. This is effective when the concentration of particles to be removed is low or the packing tendency of the filtered mate-
New white paper from KMS discusses theory, application of crossflow membrane filtrationrial does not produce a large pressure drop across the filter medium, but not when there are high concentrations of particulates. Some common examples of effective dead-end filtration are home water filters, vacuum cleaners and au-tomobile oil filters. Typical industrial uses include the sterile filtration of water, beer and wine.
Process streams that have high concentrations of particles or macro-molecules such as cells, proteins and precipitates that will rapidly compact on the filter surface when operated in a dead-end mode cause the filtration rate to drop quickly to an unaccept-able level. In these circumstances,
the article says a crossflow membrane system provides the means to maintain stable filtration rates.
“The key to the design of a crossflow system is selecting a membrane geom-etry that suits the physical characteris-tics of the process fluid,” the article says. “Crossflow membranes can be provided in tubular, flat sheet, spiral wound and hollow fiber configurations, each of which provides certain advantages for specific process needs.”
In addition, the white paper notes that virtually any membrane design can be applied on water-like liquids with low concentrations of suspended solids, but viscous streams and fluids with large amounts of solids can only be handled with membranes specifically designed for this purpose. In general, the more difficult a stream is to process, the higher the cost of a membrane system and the higher the operating costs. Because of this, the article recommends an optimi-zation study as an important component of any potential crossflow installation.
The article also discusses the evolu-tion of membrane technology. Modern crossflow technology has primarily evolved during the last 40 years, largely in step with the advancement of poly-mer chemistry. Currently, 98 percent of crossflow installations utilize polymer-based membranes while inorganic materials such as ceramic are only
selected in specific instances where pH, temperature or cleaning chemistry prohibit the use of polymers.
Regarding the theoretical principles of crossflow filtration, the article re-fers to Fick’s law of diffusion, which addresses the migration of suspended solids/macromolecules in a flowing stream toward a filtration surface, and the potential back-diffusion into the bulk stream. The design of a successful flow system relies on choosing a mem-brane geometry that can be installed and operated economically, provides consistent predictable results and can be effectively cleaned using chemicals compatible with the membrane.
In addition, the article explains that crossflow membranes are manufac-tured in a range of porosities tailored to address various applications. These span the range of salt removal from water to large particulate filtration in viscous fluids. Filtration ranges have been defined that correlate to physical aspects of the membrane process and the relative size exclusion involved. Membranes with different pore sizes also are discussed, including reverse osmosis, nanofiltration, ultrafiltration and microfiltration.
For more information about the white paper, contact Cindy Ohl-man at 978-694-7109, e-mail: [email protected]. CMN
Arla Foods amba recently approved a new structure plan that will close one production facil-ity in Sweden and expand the capacity of two Danish facilities.
As a result of tough competition in international markets for yellow cheese, Arla’s board of directors approved a plan that will consolidate part of the yellow cheese production at plants in Nr. Vium and Taulov, Denmark. The board ap-proved an investment of approximately $118 million that will expand the pro-duction capacity in these two plants.
Meanwhile, Arla will close its pro-cessing facility in Falkenberg, Sweden, and transfer the plant’s cheese produc-tion to the Nr. Vium facility in Denmark.
Company officials say milk volumes have been declining in Sweden since 2003, and to avoid empty plants, Arla has to react to the overcapacity problem at the Swedish facilities, which has con-tributed to increased production costs.
Arla plans to consolidate cheese production“The challenge in Sweden is to fill
our dairies,” says Jais Valeur, executive vice president, Arla Foods amba. “To avoid empty plants a few years down the line, we have to react now. If we don’t, production costs will be higher and the milk price paid to our owners will fall. And that’s not in our interests.”
In addition to the closure of the Falkenberg facility, Arla expects the consolidation plan eventually will lead to the closure of two facilities in Klovborg and Hjorring, Denmark. These measures will secure Arla’s future production of a broad range of yellow cheeses at com-petitive prices, company officials say.
Arla plans to expand its Nr. Vium plant over the next 12 months and its Taulov plant over a three-year period, resulting in more efficient produc-tion. The planned investment will increase the capacity at Nr. Vium by 34 percent and the capacity at Tau-lov by more than 60 percent. CMN
Fonterra Cooperative Group recently announced that its Chilean subsidiary Soprole has withdrawn a proposal to merge its business with Nestle Chile’s liquid and chilled dairy business.
The parent companies Nestlé S.A. and Fonterra assessed that the condi-tions to continue with the application were not appropriate and have no plans
Fonterra subsidiary cancels merger plansto present a new application to Chilean authorities.
Fonterra CEO Andrew Ferrier says Soprole now will focus on continuing to grow its consumer business in Chile.
“Soprole already has a very strong po-sition in the Chile market and has been posting strong growth in recent years,” Ferrier says. “The team is now focused on building on that strong foundation.” CMN
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
NEWS/BUSINESSApril 22, 2011 — CHEESE MARKET NEWS® 11
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MADISON, Wis. — A new report, pub-lished by the Dairy Business Innovation Center (DBIC) may help cheesemakers carve out a marketing niche by identify-ing a new “Taste of Place” designation for cheeses made in the driftless region of western Wisconsin.
“Application of the Concept of Ter-roir in the American Context: Taste of Place and Wisconsin Unpasteurized Milk Cheeses,” by DBIC team member Gersende Cazaux, explores the possi-bility of adapting the French concept of “terroir” to unpasteurized cheeses made in the unglaciated, rolling hills of Wisconsin’s driftless region.
While terroir has traditionally been used to explain a product’s specificity as a result of where and how it is made, to-day the term has moved beyond France and is used to explain the uniqueness of products, even serving as the basis to label and protect wines and cheeses made in certain regions of Europe, ac-cording to the report.
Currently, four projects have aimed to develop an American version of ter-roir, renamed “taste of place,” including Napa Valley wine in California, Ver-mont’s Taste of Place for maple syrup, the Missouri Regional Cuisine Project for wine and food, and the Driftless Region Food and Farm Project in the Upper Midwest for local food products.
Cazaux, a native of France, spent more than one year in Wisconsin researching and writing DBIC’s new-
‘Taste of Place’ report examines characteristics of cheeses from Wisconsin’s driftless regionest paper on applying the concept of terroir, or taste of place, to raw milk cheesemakers in Wisconsin. The proj-ect’s goal was to explore whether a geographical area could be applied to unpasteurized cheeses in Wisconsin, and whether cheeses in that area shared enough common characteristics to be collectively marketed using a “taste of place” label.
To achieve that goal, DBIC con-ducted a survey of all Wisconsin raw milk cheesemakers in July. Cheese-makers were asked to provide specific information about their unpasteurized cheese production, their dairy farming systems and cheesemaking practices.
According to the report, Wisconsin is home to 22 raw milk cheesemaking operations — 10 farmstead, nine creameries, two dairy farms and one cheese-aging operation. Of these 22 raw milk cheesemaking operations, 16 are located in the driftless region of Wisconsin.
These processors share the follow-ing traits:
the 16 producers located in the driftless region use milk from farms practicing a grazing system;
of the 16 producers use rbGH-free milk; and
— three producers use organic milk for making their cheeses.
To characterize a cheese production under the taste of place, the major influencing factor is how producers approach the raw material, the milk. The report explores how cheesemakers and dairy farms produce cheeses from milk reflecting specific “aromatic” char-acteristics. Specifically, the analysis
shows that 14 of the 22 raw milk cheese producers in Wisconsin use milk with a high aromatic potential to express the taste of place in their cheese.
These producers are characterized by the following features:
to the dairy farms that supply the milk;-
ers, from one to five, who practice dairy farming based on grazing; and
of the milk by not heat treating it and by using it within 48 hours after milking.
The report concludes that using
the concept of taste of place in the geographical driftless region would be close to the concept of terroir, as 16 of the 22 raw cheese producers are located in the region, which is characterized by specific natural characteristics and common practices based on values that unify and bring coherence to food production from the region.
DBIC now plans to work with the existing Driftless Region Food and Farm Project and take steps to create a “taste of place” for Wis-consin unpasteurized cheeses craft-ed in the driftless region. CMN
Groups petition EPA to regulate farms’ ammonia emissionsWASHINGTON — More than 20 na-tional, state and local organizations have filed a petition with the U.S. En-vironmental Protection Agency (EPA), laying out a case for an “endangerment finding” for ammonia gas and requesting that EPA list ammonia as a Clean Air Act criteria pollutant.
The criteria pollutant program requires EPA to establish air quality standards that protect public health and the environment.
The effort is led by the Environ-mental Integrity Project, and includes a group of organizations that advocate for environmental protection, public health, animal welfare, and rural econo-mies and communities.
Petitioners include such groups as the Bloomberg School of Public Health’s Johns Hopkins Center for a Livable Future, the Sierra Club, the Humane Society of the United States, the Waterkeeper Alliance and rural community organizations in California, Illinois, Iowa, Michigan, New Mexico and Wisconsin. These organizations represent rural Ameri-cans who contend they are affected by ammonia pollution from factory farms in their communities. CMN
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
12 CHEESE MARKET NEWS® — April 22, 2011
NEWS/BUSINESS
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ARLINGTON, Va. — The National Milk Producers Federation (NMPF) recently introduced more details on its proposal to reform federal milk marketing orders (FMMOs).
The FMMO reform proposal is part of NMPF’s Foundation for the Future (FFTF) plan to reform U.S. dairy policy. Last month, NMPF’s board of directors agreed to support several reforms to the federal order program. (See “NMPF board OKs proposed reforms to FMMO system” in the March 11, 2011, issue of Cheese Market News.)
In recently-released details on the FMMO reform proposal, NMPF notes that the primary objectives of the proposal are to address the inequities and inad-equacies of end-product price formulas; encourage manufacturers to produce new products resulting in higher returns both to themselves and to dairy producers; and more equitably reward producers and handlers for balancing milk supplies.
Under the proposal, all milk used in manufactured dairy products would be competitively priced, which would elimi-nate the use of end-product price formulas for manufacturing milk, including make allowances, NMPF says.
NMPF notes there would be, in ef-fect, two classes of milk use: fluid milk products (milk used to produce Class I products would be subject to minimum pricing, plus market-based premiums); and manufactured products (Class II, III and IV products would be competitively priced).
However, an advanced Class IV price would continue to be calculated, and the Class I price mover would be based on the higher of the competitive cheesemilk price or the Class IV price.
Each month, USDA’s Agricultural Marketing Service (AMS) would carry out
NMPF releases more details on its proposal to reform federal milk marketing ordersa survey of the competitive price paid by proprietary cheese plants to cooperatives and individual dairy producers for milk used to make cheese.
Proprietary plants — including those with 50 percent cooperative ownership or less and managed by the proprietary partner — producing all types of cheese would be surveyed if they process a daily average of at least 250,000 pounds of milk and are not subject to minimum pricing for that milk (under a state order, for example).
The data collected by AMS in the survey would include pounds of milk and pounds of butterfat, all premiums, component values, hauling subsidies, and lab and field service costs where ap-plicable. Forward contracted milk would not be included.
USDA would publish the results of this survey for each of five regions. These regions would correspond to, and expand upon, the current federal order markets, but are defined for reporting purposes only. There would be fewer reporting re-gions than federal order markets to ensure that each region has a sufficient volume of manufacturing milk use to result in a robust competitive pay price. California would be excluded from the survey as long as it continues to set a minimum cheesemilk price.
The national fluid milk (Class I) price mover would be the higher of the national weighted average competitive cheesemilk price survey, or the current Class IV for-mula butter-powder milk value. It would be announced in advance.
For example, the Class I mover for April would be the higher of: February’s national average cheesemilk competitive price, adjusted with weighted average National Agricultural Statistics Service (NASS) block and barrel cheese prices
for the first two weeks of March; or an advanced Class IV price as currently calculated.
A handler’s minimum price for Class I milk would be this national mover plus the current Class I differential at the plant.
The minimum price bottling plants would be required to pay to producers and co-ops supplying Class I milk would be equal to the lowest regional com-petitive cheesemilk price plus applicable producer location differentials, lagged and adjusted the same way as the Class I mover, NMPF says.
Under the proposal, the price produc-ers are paid for milk in manufactured dairy product uses (as currently defined for Classes II, III and IV) would be a competitive price. There would be no minimum price for manufacturing milk.
Each region’s competitive price for milk used to produce cheese, in addition to being used to establish the Class I base price, would be used to determine the butter-powder plant pool credit and the lowest of the regional competitive cheesemilk prices would enter into the calculation of the Class I pool contribution.
NMPF says in order to stabilize pooled values and eliminate most plant depool-ing, the federal order pool would be a modified pooling of differentials, result-ing in a producer price differential. That is, instead of pooling four class prices, relatively stable price differentials and balancing credits would be paid into and out of a differential pool, as follows:
contribute to the pool the lagged differ-ence between their Class I price and the lowest regional competitive price. Both the Class I price and the lowest regional competitive price would be announced in advance and lagged in the same way.
manufacturing milk (products generally in Class II now) would contribute a fixed differential of 30 cents per hundredweight in the pool.
cheese would have no contribution or draw.
butter and milk powders would receive a payment from the pool when the national value of milk used to make butter and powder as calculated using the current Class IV formula adjusted for energy costs is less than the regional competitive cheesemilk price.
When the Class IV formula is higher than the regional competitive cheesemilk price, the Class IV handler would pay the difference into the pool. The payment to those who manufacture butter and milk powders would not exceed the funds available in the pool.
The blended result after the distribu-tion would be a producer price differential for all pooled producer milk that would be paid directly from the market admin-istrator.
Under the proposal, USDA would be required to hold hearings, when request-ed, for the purpose of considering and implementing proposals to compensate handlers that truly perform balancing services for the Class I market.
These hearings are to include but not be limited to: a plant balancing credit to manufacturing plants that provide balancing services to the market; and intramarket transportation credits for markets in which balancing is based on long shipments of milk from within the marketing area.
Under NMPF’s proposal, funds in each order’s pool would consist of:
Class I differential, and the difference between the Class I mover and the lowest regional competitive advanced Class III survey price, adjusted for the change in the NASS Cheddar price.
30-cent differential.
amount that the Class IV formula price (adjusted for energy costs of process-ing) is above the region’s competitive cheesemilk price.
If the Class IV price is below the region’s competitive cheesemilk price, the first distribution from an order’s pool would be to handlers of Class IV up to a maximum of the total funds available in the pool. The remaining pool balance would be paid to producers in the producer price differential, subject to location adjustments and other pool balancing adjustments, as is currently the case. So that the producer price differential cannot be negative, the draw for Class IV plants would not exceed the available pool balance.
The producer price differential would be paid directly to produc-ers and to producer co-ops to keep it separate from the competitive prices paid by manufacturers. CMN
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MINNEAPOLIS — Schwan’s Food Service Inc., a provider of pizza to K-12 schools in the United States, has an-nounced that it is introducing a new line of products that meet the HealthierUS School Challenge (HUSSC) guidelines as well as USDA’s newly proposed school meal guidelines.
To meet these guidelines, each serv-ing of the new products must have less
Schwan’s Food Service offers healthier versions of school lunch pizza, other productsthan 35 percent of total calories from fat, less than 10 percent of calories from saturated fat and 0 grams of trans fat.
In addition, entrée items must have less than 600 milligrams of sodium and be at least 51 percent whole grain.
“Our new pizza products set a new standard for school lunch pizza, con-firming that all pizza is not created equal,” says Jim Clough, president of
Schwan’s Food Service. “Great taste can be synonymous with great nutrition as we redefine school lunch pizza.”
The new products will represent more than 60 percent of Schwan’s Food Service’s total school sales by fall 2012. The company notes its goal is to support the work of school foodservice direc-tors across the country as they work to provide well-balanced and nutritious options to students every day.
“While our commitment to nutrition has been constant, we’ve redoubled our
efforts this past year to develop an entirely new category of products,” Clough says, noting taste was also an important factor.
The company’s new Tony’s Ultimate Cheese and Reduced Fat Pepperoni Flatbreads feature a 51-percent whole grain crust, less than 600 milligrams of sodium, less than 30 percent of total calories from fat, less than 10 percent of total calories from saturated fat, 0 trans fat, 5 grams of fiber, one-fourth cup of vegetables and 21 grams of protein for less than 400 calories per serving. CMN
Arla Foods Ingredients Group now is an official subsidiary of Arla Foods after changing its status from a limited partnership company to a wholly-owned subsidiary of the Arla Foods Group.
As of April 1, all Arla Foods Ingre-dients’ whey-based activities officially were transferred to the newly-organized company. The reorganization, which first was announced last May, sets the stage for implementing the company’s growth strategy.
Although little will change in the short term, long-term benefits will be drawn from a sharper focus on key strategic
Arla Foods Ingredients Group reorganized as official subsidiary of Arla Foods Group
challenges, including securing the raw materials necessary for further growth, Arla officials say. Recently Arla Foods Ingredients added DMK of Germany as a new strategic partner in whey. Other partnerships have been established in Argentina, France, Norway and Sweden, with more planned in the future.
“Arla Foods Ingredients is a leading player on the global market for whey proteins,” says Henrik Andersen, CEO, adding that the newly combined busi-ness will provide management focus that will enable Arla to consolidate and expand its whey activities to the benefit of its customers and owners. CMN
Chr. Hansen and Vinamilk, a leading Vietnamese dairy corporation, recently signed an agreement formalizing a strategic co-operation on bioscience-based nutrition products for Vietnamese children.
The first result of the cooperation is a new nutrition product for children under the brand name “Dielac Pecia” that will be launched in Vietnam and contains a blend of Chr. Hansen’s flag-ship probiotic strains BB-12 and LGG.
“I am very pleased to have signed this cooperation agreement which will further develop our partnership with
Chr. Hansen, Vinamilk partner on productsVinamilk that has been working very well for years already,” says Henrik Dalboege, executive vice president, health and nutrition division, Chr. Hansen.
“We are already a trusted supplier of documented probiotics for Vina-milk’s nutrition products for children,” Dalboege adds, “but I anticipate that this cooperation agreement will bring us even closer together while working on our shared task: to de-velop nutritional products with proven health benefits for consumers, in this case Vietnamese children.” CMN
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
14 CHEESE MARKET NEWS® — April 22, 2011
NEWS/BUSINESS
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The Idaho Milk Processors Association (IMPA) will hold its 16th Annual Idaho Milk Processors Cheese Contest Aug. 9 at the Glanbia Foods Inc. facility in Twin Falls, Idaho.
This year’s contest includes some changes to the classes to expand some categories and offer more entry oppor-tunities. The Italian cheese class has been split into two categories: hard cheese and soft/semi-soft and fresh cheese. There also now is a separate class for Swiss.
IMPA’s board encourages proces-sors of all sizes, including goat’s and sheep’s milk processors, to participate. The contest is open to IMPA members from Idaho as well as those from Montana, Oregon, Utah, Wyoming and Washington with ties to Idaho. Those with land or dairy animals in Idaho, or who are processing some milk from Idaho producers, are eligible to enter the contest. Non-members and non-associate members also may submit cheese and will receive a complimentary score from the judges panel but are not
IMPA adds contest classes, invites entrieseligible for awards.
The contest rules allow each member and associate member company to enter any number of contest classes. If more than one sample is entered per class, a separate individual must be assigned to each entry. First, second and third place ribbons will be presented for each class.
Each class champion entry will be auctioned at the wine and cheese social Aug. 11 during the IMPA Conference Meeting in Sun Valley, Idaho. Second-place cheeses will be displayed and consumed at the wine and cheese social. All remaining entries will be donated to local food banks.
All entries must be received by Aug. 5 and should be shipped to: Oscar Salinas, IMPA Cheese Contest, Glanbia Foods Inc., 236 Washington Street So., Twin Falls, ID 83301, 208-733-3226.
It is the responsibility of the entrant to place each cheese in the appropriate class. The classes and more information about the contest and conference can be found at www.tmnregistration.com/IMPA. CMN
ROSEMONT, Ill. — Consumption of lowfat dairy may help decrease the risk for elevated blood pressure and, regardless of fat content, fluid dairy foods (including lowfat and full-fat milk and yogurt) are associated with a reduced risk of elevated blood pressure, according to a paper recently published in the Journal of Human Hypertension.
Funded by the National Health and Medical Research Council, Australia, re-searchers at the Department of Nutrition and Dietetics, Southern Clinical School of Medicine, Monash University, Victo-ria, Australia, conducted a systematic
Study: Lowfat dairy may help blood pressurereview and meta-analysis examining the relationship between dairy food intake and the development of elevated blood pressure in adults by summarizing previ-ously published observational studies.
“High blood pressure continues to be a critical concern for many Americans and populations around the world,” says Gregory Miller, president of the Dairy Research Institute and executive vice president of the National Dairy Council. “This latest review reinforces the value that dairy foods provide by indicating that three servings of lowfat dairy prod-ucts per day may help to reduce the risk of elevated blood pressure.”
The review compared the asso-ciation of elevated blood pressure with consumption of lowfat dairy foods and high-fat dairy foods as well as cheese and fluid dairy foods like milk or yogurt. Authors searched seven databases and selected five cohort studies for inclusion, involving nearly 45,000 subjects and 11,500 cases of elevated blood pressure.
The authors concluded that:
in a significant reduction in the risk of elevated blood pressure;
dairy products including cheese in-dicates neither an increased nor a decreased risk of elevated blood pres-sure; and
dairy foods were associated with a reduced risk of developing elevated blood pressure.
Study authors conclude that un-derstanding the relationship between lowfat and fluid dairy foods and blood pressure can aid in the development of public health messages involving dairy foods and supports current government recommendations for dairy intake. CMN
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
NEWS/BUSINESSApril 22, 2011 — CHEESE MARKET NEWS® 15
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TAKING BETS — Mark Mazer, Great Lakes Cheese, helps officiate the horse race wagering during the California Cheese & Butter Association’s “Race to Excellence” Convention, held April 8-9 at the Claremont Hotel & Spa in Berkeley, Calif.
Photo courtesey of the California Cheese & Butter Association
NAPERVILLE, Ill. — Portola Packag-ing Inc. has announced its pending acquisition of Integra-Seal Industries LLC of Kingsport, Tenn.
Founded in 1999, Integra-Seal is a manufacturer of low-density polyethyl-ene tamper-evident closures for dairy, juice and bottled water packaging ap-plications. The company primarily is known for its 38-millimeter Integra-Lock snap-on tamper-evident closure. The company also recently commercialized the tamper-evident Dyna-Seal 38-mil-limeter plastic snap-screw closure.
“Integra-Seal has been able to build long-lasting brand owner relationships due to its exceptional product qual-ity and customer service,” says Kevin Kwilinski, president and CEO, Portola. “We look forward to growing those
Portola Packaging to acquire Integra-Sealrelationships even further, especially with small- to medium-sized dairy and water customers.
“Our objective is to deliver the high-est levels of customer service, satisfac-tion and packaging solutions,” he adds.
Integra-Seal President Martin Mc-Clean and Vice President Dino Caserta will be joining Portola in commercial and tooling engineering-related capaci-ties, respectively.
“We are pleased that Martin and Dino are joining Portola,” Kwilinski says. “Their considerable expertise will be an asset as we grow our business further over the coming years.”
Portola’s existing 90,000-square-foot Kingsport manufacturing location produces a variety of tamper-evident closures and employs 110 people. CMN
ELK GROVE VILLAGE, Ill. — Renew-able thermoformed produce packaging developed by Clear Lam Packaging Inc. has earned the USDA Certified Biobased Product Label, part of a new voluntary labeling program to help purchasers choose products made with biobased commodities.
Deputy Agriculture Secretary Kath-leen Merrigan unveiled the nation’s first products approved to display the new USDA product label at a biobased product meeting held recently near Cleveland.
“These companies are proving that innovation and agriculture can grow together to build a foundation for future growth in rural America as we work to win the future,” Merrigan says. “Con-sumer cleaning products, containers and the ‘intermediate materials’ used to manufacture them — made from agriculturally-sourced ingredients — help add value to commodities, create jobs in rural communities and can re-duce our dependence on imported oil.”
Biobased products are those com-posed wholly or significantly of agricul-tural ingredients — renewable plant, animal, marine or forestry materials. The new label indicates the product has been independently certified to meet USDA BioPreferred program standards for biobased content.
Clear Lam was among the first com-panies to submit applications for the USDA BioPreferred program, includ-ing five product lines in the packaging category.
“We’re proud to achieve this impor-tant distinction under USDA’s BioPre-ferred program as it will bring greater clarity to the marketplace and spur more leading product manufacturers and consumers to embrace materials that reduce adverse environmental impacts,” says James Sanfilippo, presi-dent and CEO, Clear Lam Packaging. “Because many biobased packages look the same as petroleum-based products, the Biobased Product Label lets every-one know they can trust manufacturer’s biobased claims as they’ve been verified through a reliable, rigorous third-party certification process.”
Clear Lam’s renewable thermo-formed containers are produced from more than 93 percent plant-based bio-plastics derived from Ingeo polylactic acid (PLA) along with ingredients that add performance characteristics such as enhanced impact and temperature resistance. These materials are part of the company’s Protect EarthClear program and replace petroleum-based plastics with biobased ingredients developed to reduce the introduction of fossil carbon into the atmosphere.
In addition to Clear Lam’s renewable thermoformed containers that will now carry the Biobased Product Label, the company has four other applications underway for its flexible and rigid pack-ages. Currently, the company works with several retailers and consumer
Clear Lam earns Biobased Product Labelpackaged goods companies to supply renewable packaging.
Clear Lam notes Walmart has been a leader in introducing sustainable pack-aging into everyday use. The Walmart private label Marketside branded Or-ganic Lettuce containers are one of the first packages certified under the USDA BioPreferred program. The renewable containers also are used to package cheeses, fruits, meats, candy and nuts.
Additional packaging Clear Lam has submitted for the BioPreferred program includes packages for dairy-based items such as yogurt and cottage cheese, condiments and salty snacks.
Through implementation of the pre-existing USDA BioPreferred pro-gram, the Secretary of Agriculture has designated 5,100 biobased products for preferred purchasing by federal agen-cies. The new label makes identification of these products easier for federal buyers and will increase awareness of these products in commercial and consumer markets. USDA estimates there are 20,000 biobased products currently being manufactured in the United States.
With the launch of this new Biobased Product Label, USDA’s BioPreferred program now is comprised of two parts: a biobased product procurement pref-erence program for federal agencies, and a voluntary labeling initiative for the broad-scale marketing of biobased products.
Additional companies that bear the new label include Nutek Green, a divi-sion of Hoover Inc.; Seventh Generation; Betco Corp.; DuPont Corp.; ElastiKote; Green Earth Technologies; National Industries for the Blind Agencies; NatureWorks LLC; Rochester Midland Corp.; and Bio-Lub Canada. CMN
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
16 CHEESE MARKET NEWS® — April 22, 2011
NEWS/BUSINESS
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GEA FiltrationGEA Process Engineering Inc.�����1o-GGHG�4QCF�r�*WFUQP��9+�������r�6GN��������������r�(CZ��������������'�OCKN�KPHQ"IGCHKNVTCVKQP�EQO�r�9GDUKVG�YYY�IGCHKNVTCVKQP�EQO
GEA Filtration has developed a new unit, the MşcŨť FťŨmūŢŗ™, for PiFropartiFulation of whey whiFh Pakes it possible to use whey to replaFe fat. The PiFropartiFulation proFess forPs partiFles siPilar to Pilk fat partiFles. MiFropartiFulated whey Fan be used in a nuPber of produFts.
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MCLEAN, Va. — 3-A Sanitary Stan-dards Inc. (3-A SSI) has applied for official trademark registration of the 3-A Symbol in China to help raise general awareness of the mark and 3-A SSI’s property rights.
Under international trademark registration rules, registered pro-tection of the mark in China will become final in 18 months, unless a provisional refusal is made by the Chinese Trademark Office.
3-A SSI says the official registra-tion of the mark in China will enhance the organization’s ability to enforce its property rights in China and obtain relief from infringing parties in a legal
3-A SSI seeks international trademark protection for 3-A Symbolproceeding. 3-A SSI also notes it may seek registration of the mark in other countries at a later date.
3-A SSI also registered the 3-A Symbol trademark with the U.S. Cus-toms and Border Protection (CBP), Intellectual Rights Branch. Registra-tion in the CBP database will allow inspection officers to verify imported goods at all ports of entry and seize any infringing goods. Effective now, the CBP registration provides a new safeguard for 3-A SSI if information becomes available about shipments of goods with unauthorized display of the 3-A Symbol headed to the United States.
3-A SSI licenses use of the 3-A Symbol to fabricators to identify equipment that meets 3-A Sanitary Standards for design and fabrication. Voluntary use of the 3-A Symbol by dairy and food equipment fabricators assures processors that equipment meets sanitary standards, provides accepted criteria to equipment manufacturers for sanitary design and establishes guidelines for uniform evaluation and compliance by sanitar-ians in the U.S.
3-A SSI currently licenses use of the 3-A Symbol to fabricators in the U.S. and 22 other countries around the world, including China. CMN
Codex endorses new guidelines for testing melamine in milk products
In response to the melamine-tainted milk crisis that affected thousands of children in 2008, the International Dairy Fed-eration (IDF) and the International Organization for Standardization (ISO) have developed new guidelines for de-termining melamine and cyanuric acid in milk products.
The Codex Committee on Methods of Analysis and Sampling (CCMAS) during its 32nd session last month endorsed the joint technical specification (TS)/reviewed method (RM), “ISO/TS 15495 | IDF/RM 230:2010, Milk, milk products and infant formulae — Guidelines for the quantitative determination of melamine and cyanuric acid by LC-MS/MS.”
The endorsement of these guidelines means that an internationally-coordi-nated procedure now has been approved that will allow authorities to check the level of melamine in powdered infant formula against the recently-adopted Codex maximum level of 1 milligram of melamine per kilogram of product. CCMAS is recommending this method for final adoption by the Codex Alimen-tarius Commission in July 2011.
“The publication of these guidelines was achieved in a very short time span in response to the event of milk adul-teration with melamine,” says Richard Doyle, president, IDF. “The availability of the method will help reinforce con-sumer confidence in the milk industry’s ability to guarantee safe and nutritious products. It also clearly demonstrates the strength of IDF and ISO’s collabo-ration, especially concerning matters regarding food safety/public health and protection.”
Codex has adopted more than 60 joint IDF/ISO standards for methods of analysis which facilitate interna-tional trade in dairy products and protect the consumer. CMN
DFA Ventura plant honored for safety
Dairy Farmers of America Inc. (DFA) recently announced that its Ventura, Calif., plant has reached a milestone of one year with no lost-time accidents. DFA employs nearly 100 people at the plant, which produces Starbucks bottled Frappuccino coffee drinks for the North American Coffee Partnership, a joint venture between PepsiCo and Starbucks Coffee Co.
The Ventura plant’s commitment to safety also recently was recognized by California’s Voluntary Protection Program (Cal/VPP), which is admin-istered by the California Occupational Safety and Health Administration (Cal-OSHA). The plant achieved Star status, the highest recognition bestowed by the program. CMN
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NEWS/BUSINESSApril 22, 2011 — CHEESE MARKET NEWS® 17
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ST. PAUL, Minn. — A delegation of U.S. officials representing the legislative and non-profit arenas recently traveled to Malawi to visit the Chitsanzo Milk Bulking Group, a smallholder dairy cooperative developed by Land O’Lakes International Development through the Malawi Dairy Development Alliance.
The Malawi Dairy Development Al-liance is funded by the U.S. Agency for International Development (USAID), and the visit was in support of the Obama administration’s Feed the Future food security initiative.
The Chitsanzo Milking Bulking Group, one of 23 similar groups receiving assis-tance through the program, is increasing
Land O’Lakes brings together U.S. officials, Malawi dairy cooperativeincomes for more than 260 dairy farmer-members and participating stakeholders by building economies of scale in milk production, collection and processing, as well as meeting demand for affordable, locally-produced dairy products.
While visiting the group, attendees participated in three breakout sessions which included:
to better understand how dairy farming has impacted their lives;
female farmer who has used the milk from one cow to purchase more land, grow more crops, hire five employees and start a piggery as well as feed her family
and send her children to school; and
and recognition of some of the program’s private sector partners.
“Throughout the visit, we emphasized that the Malawi Dairy Development Al-liance is a private sector development program that is building the capacity of farmers, producer groups, input suppli-ers and service providers,” says Derek Mullen, Malawi Country Manager for Land O’Lakes International Develop-ment. “Through milk bulking groups, farmers are able to access the credit, inputs, services, information and ac-cess to markets needed to maximize the profits of their businesses.” CMN
Ohio’s Mackenzie Creamery receives conservation awardHIRAM, Ohio — Mackenzie Creamery, an artisanal cheesemaker in Hiram, Ohio, recently was honored by Portage County Park District Foundation as the recipient of the 2011 Environmental Conservation Award-Green Business.
Mackenzie Creamery in 2007 built its facility using “green” products wherever possible and holds its focus on being as sustainable as possible while at the same time complying with federal and state re-quirements for running a Grade A cheese processing facility, says Jean Mackenzie, owner and head cheesemaker.
The creamery uses geo-thermal technology to condition its facility. All of its whey byproduct is collected in a 200-gallon tank, and several times a week a farmer comes to pick it up for use in animal feed or fertilizer.
“To me, running a sustainable busi-ness means being sustainable at all levels: environmental, human and busi-ness,” Mackenzie says. “So many people focus on the environmental aspect of sustainability, but it is also about the people who come into our lives each day, whose lives are changed and improved by what we are doing.”
For more information, visit www.mackenziecreamery.com. CMN
Silliker opens new laboratory in FloridaCHICAGO — Silliker Inc. has announced the opening of its new facility in Lake-land, Fla.
“With Tampa and Orlando, Lakeland forms an impressive triad of cities along Interstate 4 in central Florida,” says Jo-hannes Burlin, president, Silliker North America. “Lakeland resides in one of the state’s most robust business regions, pro-viding us with an ideal geographical base to serve area processors, manufacturers, retailers, distributors and foodservice establishments.”
With the assistance of Lakeland-based Wallis Murphey Boyington Ar-chitects, the organization’s Industrial Performance, Operations and Quality departments designed the laboratory build-out. Keeping with Silliker op-eration protocols, the facility employs workstation designs and multi-use work flow processes designed to minimize common workplace errors and assure the production of consistent quality results, the company says.
The facility complies with Florida standards and ISO operational require-ments for food testing laboratories, Silliker representatives say. Fully equipped to handle large sample vol-umes in accordance with industry and Silliker guidelines, the facility has begun ISO 17025 accreditation activi-ties through the American Association for Laboratory Accreditation (A2LA) under Manager John Bernstein. CMN
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
18 CHEESE MARKET NEWS® — April 22, 2011
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NCSU’s Foegeding given CDRF Haines awardDAVIS, Calif. — The California Dairy Research Foundation (CDRF) recently gave the William C. Haines Dairy Sci-ence Award to E. Allen Foegeding, William Neal Reynolds Distinguished Professor in the Department of Food, Bioprocessing and Nutrition Sciences at North Carolina State University (NCSU), in recognition of his contributions to the field of dairy science.
The award was presented at the 13th Cal Poly Dairy Ingredients Symposium in San Francisco, where Foegeding gave a presentation on the historic, current and future opportunities for milk proteins.
“I was deeply honored to receive this award and thank the California Dairy Research Foundation for their support,” Foegeding says. “It acknowledges the outstanding abilities of the students and researchers that I have been for-tunate to work with over the years. We are continuing our efforts in exploring the many applications of milk proteins.”
Foegeding conducts research and teaches at NCSU in the areas of protein functionality and polymer and colloidal properties of food products, with empha-sis on whey proteins and dairy products. He is a fellow of the Agricultural and
Food Chemistry Division of the Ameri-can Chemical Society and the Institute of Food Technologists and has received numerous research and teaching awards.
One of Foegeding’s major research accomplishments has been in the area of whey protein gelation, which has been supported by three USDA-NRI competitive grants and industrial grants from Davisco Foods International and Kraft Foods.
“Through his work with whey protein functionality and the textural proper-ties of cheese, Allen has contributed tremendously to the dairy industry,” says Joseph O’Donnell, executive director, CDRF. “We are happy to honor his many decades of service with this award that really spotlights research supporting product innovation.”
The William C. Haines Dairy Sci-ence Award was established in 2004 to recognize individuals who, through their accomplishments in research and development in the fields of chemistry, biochemistry, microbiology, technology, nutrition and/or engineering, have made significant contributions to dairy science and the betterment of the dairy industry and consumers. CMN
LA CROSSE, Wis. — The Wisconsin Cheese Makers Association (WCMA) recently elected officers and new board members to its board of directors for the 2011-2012 year.
Mark Schleitwiler, BelGioioso Cheese, Denmark, Wis., was re-elected as president. Ron Buholzer, Klondike Cheese, Monroe, Wis., was elected first vice president. Eric Liebetrau, Park Cheese, Fond du Lac, Wis., was
WCMA elects officers, new board members elected second vice president. Pat Mu-gan, Sartori Foods, Plymouth, Wis., was re-elected as secretary. Dan Zagzebski, Great Lakes Cheese, Wausau, Wis., was re-elected as treasurer.
WCMA also elected new board members, who include Lauri Olm, Pine River Dairy, Manitowoc, Wis.; Julie Stellpflug, Crystal Farms, Lake Mills, Wis.; and Dick Groves, Cheese Reporter, Madison, Wis. CMN
BLOOMINGTON, Minn. — Associ-ated Milk Producers Inc. (AMPI) has announced Steve Schlangen, a dairy farmer from Albany, Minn., is stepping up to assume leadership of the 3,000 member cooperative.
Schlangen was elected chairman by the board of directors immediately following the close of AMPI’s annual meeting.
Schlangen owns and operates a 65-cow dairy farm with his wife, Cheryl. He has served on the AMPI board of directors since 2001.
Schlangen succeeds Paul Toft, who retired after serving as AMPI chairman for the past decade. Toft and his wife, Shirley, farm in partnership with their
AMPI board elects new chairman, membersson, Mark, near Rice Lake, Wis.
The AMPI board of directors also elected the following members to serve as officers of the board: Doug Temme of Wayne, Neb., vice president; Phil Johnson of Holmen, Wis., secretary; and Brad Nevin of Rice Lake, Wis., treasurer.
In addition to the officers, other executive committee members include Bruce Brockshus of Ocheyedan, Iowa; John Grafenberg of West Union, Iowa; Bruce Maas of Walnut Grove, Minn.; Harvey Phelps of Cornell, Wis.; and Dave VanderKooi of Worthington, Minn.
Joining the AMPI board of directors in 2011 are Mark Kaeding of Augusta, Wis.; James Koser of Almena, Wis.; and Dave Sullivan of Oelwein, Iowa. CMN
LA CROSSE, Wis. — John Pitman, Mill Creek Cheese, Arena, Wis., received the H.P. Mulloy Memorial Award during last week’s Wisconsin Cheese Industry Conference.
The award is presented biennially to the Wisconsin licensed cheesemaker with the highest combined score for entries in the same or similar classes in the U.S. Championship Cheese Contest and the most recent Wisconsin State Fair Cheese & Butter Contest. Pitman’s Brick cheese entries earned a score of
WCMA gives John Pitman H.P. Malloy award99.35 at this year’s U.S. Championship and a score of 99.55 during the 2010 Wisconsin Sate Fair contest.
The Wisconsin Cheese Makers As-sociation (WCMA) in 1973 established a memorial fund to honor Horace P. Mulloy, an energetic WCMA field representative, lobbyist and contest coordinator. In 1975, the H.P. Mulloy Memorial Award was created to com-memorate Mulloy’s dedication to the art of quality cheesemaking and to perpetuate his competitive spirit. CMN
PEOPLE
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April 22, 2011 — CHEESE MARKET NEWS® 19
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NEWS/BUSINESS
Comings and goings … comings and goings
Flavor company David Michael & Co., Philadelphia, recently announced that Nancy Fogg-Johnson and John Stanton have joined the company’s strategic alliance advisory board, where they will help to strengthen current corporate partnerships and develop new strategic alliances with food and beverage manufacturers throughout North America. Fogg-Johnson currently works as principal at Technology and Business Ventures Inc. and is a founder of Nutri+Food Business Consultants. Stan-ton is a 30-year food industry veteran. He currently is professor and chair of the food marketing department at Saint Joseph’s University in Philadelphia.
Intelligrated, a Cincinnati-based automated material handling solutions provider, recently announced it has ap-pointed Chris Barber as vice president of southern operations, distribution and fulfillment. Based out of the company’s Atlanta location, Barber will oversee sales, concepting, estimating, engi-neering and project implementation services for the company’s distribution, warehousing and fulfillment clients in the region. Barber has served for five years with Intelligrated as senior sales engineer and sales manager for the company’s southwest operations.
Kraft Foods recently announced the nomination of Peter B. Henry to
its board of directors. Henry is an inter-national economist who specializes in emerging economies and is dean of New York University Stern School of Business. Kraft Foods also announced that current directors Deborah C. Wright and Frank G. Zarb will not stand for re-election. All other members of the board will stand for re-election. Kraft Foods sharehold-ers will elect 11 directors for one-year terms at the company’s annual meeting of shareholders May 24.
Midwest Dairy Association recently announced that Natalie Thyen, Waverly, S.D., is South Dakota’s 56th State Dairy Princess. Thyen, a student at Lake Area Technical Institute who is pursuing a career as a medical assistant, will represent South Dakota dairy farmers at appearances throughout the coming year. She will receive a $1,000 scholar-ship from Midwest Dairy Association’s South Dakota Division.
Parchem Fine & Specialty Chemi-cals recently welcomed William L. Graham to the company as vice presi-dent of sales and business development, focusing on business development for the flavor, fragrance and consumer products industries. Graham has many years of experience in sales and leadership roles at companies including flavor and fra-grance manufacturer Florasynth and the flavors division at Frutarom USA. CMN
PEOPLE
WASHINGTON — The United States exported $343.0 worth of dairy products in February, up 55 percent from Febru-ary 2010, according to data recently released by USDA and reported by the U.S. Dairy Export Council (USDEC). Year-to-date dairy exports were valued at $674.8 million, up 52 percent from January-February exports last year.
Milk powder and cheese shipment remain particularly strong, USDEC says, also noting gains in lactose and butterfat.
Total cheese exports in February totaled 43.9 million pounds, up 103 percent from February 2010. January-February cheese exports totaled 85.4 million pounds, 99 percent above the same period total last year. Cheese shipments have been driven by strong business in Mexico, South Korea, Middle East/North Africa and Japan, USDEC says.
Milk powder exports in February totaled 81.0 million pounds, up 175 percent from February last year. Year-to-date milk powder exports reached 172.2 million pounds, also up 175 percent from January-February 2010. Nonfat dry milk (NDM) and skim milk powder (SMP) comprised 78.7 million pounds of February’s total milk powder exports, while whole milk powder exports in
Cheese, powder exports strong in FebruaryFebruary were 2.3 million pounds. In the December-February period, U.S. sales of NDM/SMP to Southeast Asia have more than tripled, accounting for almost half of U.S. volume, USDEC says.
Whey protein exports in February totaled 72.2 million pounds, down 7 percent from a year earlier. January-February whey protein exports totaled 152.1 million pounds, down 1 percent from the same months in 2010. In Febru-ary, exports of dry whey totaled 42.0 mil-lion pounds, whey protein concentrate exports totaled 26.5 million pounds, and whey protein isolate totaled 3.7 million pounds.
U.S. exports of lactose in February totaled 55.9 million pounds, up 50 per-cent from February 2010. Year-to-date lactose exports totaled 108.3 million pounds, up 45 percent from January-February last year.
Mexico was the largest export mar-ket in February, buying $74 million of U.S. dairy products, while Southeast Asia was close behind with $72 million of U.S. dairy products traded. Year-to-date, Southeast Asia is the United State’s biggest dairy export market, purchasing $148 million of U.S. dairy products January-February. Mexico purchased $143 million of U.S. dairy products during the same period. CMN
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
20 CHEESE MARKET NEWS® — April 22, 2011
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NEWS/BUSINESS
WASHINGTON — USDA recently an-nounced it is accepting applications for 2012 funding for five export market programs administered by USDA’s For-eign Agricultural Service (FAS).
The Market Access Program (MAP) provides cost-share assistance to nonprofit U.S. trade organizations and small-sized entities to help create, expand and maintain foreign markets for U.S. agricultural commodities and products.
The Foreign Market Development Cooperator Program (FMD) provides cost-share assistance to nonprofit U.S. agricultural trade organizations to de-velop and maintain foreign markets for U.S. agricultural products.
The Technical Assistance for Spe-cialty Crops Program (TASC) is designed to assist U.S. organizations by providing funding for projects that address sani-tary, phytosanitary or related technical barriers that prohibit or threaten the export of U.S. specialty crops.
The Quality Samples Program (QSP)
USDA accepting export funding applicationshelps U.S. organizations supply samples of U.S. commodities to potential foreign buyers to be used in technical assistance projects displaying product quality and proper use as a means to encourage new purchases.
The Emerging Markets Program (EMP) assists U.S. entities in develop-ing, maintaining or expanding exports of U.S. agricultural commodities and products by funding activities that im-prove emerging markets’ food and rural business systems.
Applications for all five programs are due by May 16, 2011. For QSP, TASC and EMP, applications received after this deadline will be considered for funding if money remains available following the initial funding decision.
For more information, visit www.fas.usda.gov/cooperators.html, contact FAS’s program operations division at 202-720-4327, or e-mail [email protected]. Information about FAS market develop-ment programs also can be found at www.fas.usda.gov/mos/marketdev.asp. CMN
WAUCONDA, Ill. — Synergy Flavors Inc. is establishing a new flavor innovation and manufacturing campus less than a mile from its current facility in Wauconda, Ill.
The new campus will sit on 15 acres of land and utilize an existing building that will be modified and expanded into a 125,000-square-foot facility. The facility will be designed in parallel with leader-ship in energy and environmental design (LEED) Certification Standards governed by the Green Building Institute to align with Synergy’s sustainability platform and further the company’s reputation as an industry leader in corporate social responsibility, company officials say.
Synergy Flavors plans to build new campus“We have simply outgrown our current
facility, and although we have added staffing and expanded shifts to increase production, we are coming to a time where we won’t be able to accommodate our growth plans in our existing facility,” says Roderick Sowders, CEO, Synergy Flavors.
Greg Bach, Synergy Flavors’ vice president of business development, notes the company’s growth has come from expanding its reach in key markets such as dairy, ready-to-drink beverages, bakery, confection, dry drinks, nutri-tional and savory products.
The company also has grown through acquisitions.
“In 2006, the company acquired Van-lab, bringing 100 years of expertise in vanilla production,” Bach says. “In 2007, AFF Aromas do Brasil was brought on to establish a technical and manufacturing base in South America.”
Synergy says it is celebrating the 100-year anniversary of Vanlab with various promotional activities throughout the year.
Synergy expects the new facility to be fully operational by the end of 2012. The campus will feature an innovation center that will include flavor and ap-plications development labs, a demon-stration kitchen, sensory testing labs, and analytical and pilot plant facilities.
Operationally, the expanded facility will include new automation to improve liquid processing and packaging efficien-cies. Synergy also will be adding further capabilities in dry production including substantial expansion of its spray drying facility.
“We are fortunate to have developed a great team of people, and aligned ourselves with fantastic customers,” Sowders says. “This facility represents the next phase in our development, and we are proud to remain a part of the Wauconda community.” CMN
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April 22, 2011 — CHEESE MARKET NEWS® 21
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NEWS/BUSINESS
CHICAGO — As FDA continues to finalize regulations for federal menu labeling, The NPD Group, a market research company, says that calorie information on menus most likely will have little long-term effect on consumer ordering patterns.
To help restaurant operators gauge consumers’ response to calorie postings on menus, NPD conducted a survey among adults ages 18 and older as part of a recent report titled, “Consumers Define Healthy Eating When They Go Out to Eat.” Panelists were asked to indicate items they would order from two versions of a typical fast food hamburger restaurant menu. Their first exposure was to a typical menu board without calorie information. Their second expo-sure was to the same menu board, but with calorie counts shown alongside the price of each item. The before and after
NPD study shows calorie info on menus not likely to sway consumers’ ordering patternsordering patterns were then compared.
After viewing the menu with the calo-ries posted, consumers ordered items that amounted to fewer calories, but the difference in calories was relatively small, NPD says. The average number of calories ordered when calories were posted was 901, compared to 1,021 when calories were not posted.
The NPD study also found that con-sumers ordered about the same number of items when calories were posted. They ordered, on average, 3.3 when calories weren’t posted, vs. 3.2 when they were.
“Calories aren’t the main priority for diners who are looking for healthy options when they eat out,” says Bonnie Riggs, NPD’s restaurant industry analyst and author of the report. “We found through our research that quality, as in fresh, natural and nutritious, is the most
important healthy eating attribute when they dine out.”
Consumers seeing calories on menus did cause a decrease in the ordering of foods that were already declining in terms of restaurant servings, such as French fries, regular carbonated soft drinks, one-third-pound hamburgers, shakes and smoothies, onion rings and some chicken sandwiches, NPD notes. On the other hand, NPD found that the calorie postings increased orders for other foods. For example, orders increased for regular hamburgers and cheeseburgers, diet carbonated soft
drinks, salads without dressing and grilled chicken wraps.
“The takeaway for restaurant chains is that, in the short term, we expect consumers may react to calorie label-ing with some shift in foods/beverages ordered, but expect that old behaviors will return in time,” Riggs says. “Opera-tors may want to plan for some initial shift in product mix when the new menus are presented to consumers. Lower-calorie sides might be highlighted or promoted when the menu change is made, which could assist in keeping order sizes and check sizes up.” CMN
ROSEMONT, Ill. — Exploring opportu-nities to connect with lactose intolerant consumers, the dairy checkoff program has launched a new multichannel social media effort.
Moovision.com is designed to help change the attitudes and purchase behaviors of U.S. adults who currently experience real or perceived symptoms of lactose intolerance and avoid or restrict dairy consumption. According to Dairy Management Inc. (DMI), bringing this demographic back to dairy could result in 2.3 billion pounds of new sales annually.
The initiative includes a hub site, www.Moovision.com, as well as a Facebook page, Twitter account and YouTube channel.
Moovision to address lactose intoleranceIts goal is to use these venues in a “light-hearted and novel way” to converse with lactose intolerance consumers, DMI says.
Core objectives include identifying opportunities to increase lactose-free milk consumption, encouraging use and growing the lactose-free category; and addressing myths and misperceptions of lactose-free milk related to its nutritional value and taste, and showing that lactose-free milk is “real milk.”
“There is a huge opportunity to change attitudes and strategies to make sure people who are lactose intolerant are aware of dairy-first solutions,” says Jim Layne, vice president of DMI’s strategic initiatives team. “Moovision.com is a light-hearted ap-proach that gives people a platform to talk about a very personal condition. We want to engage them, retain them and give them the chance to reach out to other people.”
For additional information, vis-it www.dairycheckoff.com. CMN
Minor price changes follow latest auction by globalDairyTradeAUCKLAND, New Zealand — The trade weighted index increased by 0.1 percent, and anhydrous milkfat (AMF), skim milk powder (SMP) and whole milk powder (WMP) saw minor price changes following Tuesday’s auction on globalDairyTrade, Fonterra’s internet-based sales platform.
The average price achieved across all contracts and contract periods for WMP was up 0.8 percent following Tuesday’s event to US$3,912 per metric ton FAS ($1.7745 per pound).
Meanwhile, prices for AMF and SMP were down slightly following the auc-tion. The average price achieved across all contracts and contract periods for AMF was US$5,951 per metric ton FAS ($2.6994 per pound 99 percent butterfat, $2.1813 per pound 80 percent butterfat), down 0.8 percent, while SMP was at US$3,771 per metric ton FAS ($1.7105 per pound), down 0.6 percent.
No buttermilk powder was offered at Tuesday’s auction.
The next trading event will be held May 3. For more information, visit www.globalDairyTrade.info. CMN
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22 CHEESE MARKET NEWS® — April 22, 2011
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NEWS/BUSINESS
WASHINGTON — The International Dairy Foods Association (IDFA) has announced a promotional partnership with the American Meat Institute (AMI) to cross endorse the associations’ trade shows.
“We are pleased to work in partner-ship with AMI on cross promotion of our mutual trade shows,” says Robin Cornelison, IDFA trade show director. “Collaborative efforts with other food and beverage associations are essential to the success of our shows.”
As part of the co-promotional agree-ment, IDFA will be exhibiting at the AMI Expo 2011, which will take place April 13-16 at the McCormick Place in Chicago. According to IDFA, the expo
IDFA announces partnership with AMI Expoattracts more than 360 exhibitors, who display new technologies in equipment, packaging, ingredients and services for processors of meat, poultry and seafood.
AMI Expo also will be exhibit-ing at the International Dairy Show 2011, which will be held Sept. 19-21 at the Georgia World Congress Center in Atlanta. Attendees will have the opportunity to view more than 7,500 square feet of exhibits, which IDFA says will offer everything dairy, food and beverage companies need to run more efficiently, create new products and improve profitability.
For additional information on the International Dairy Show, contact Robin Cornelison at [email protected] or visit www.dairyshow.com.
For more information about the 2011 AMI Expo, visit www.amiexpo.com or www.amiexpo2011.com. CMN
CWT accepts seven requests for cheese export assistanceARLINGTON, Va. — Cooperatives Working Together (CWT) recently has accepted seven requests for export as-sistance from Dairy Farmers of America and Darigold to sell a total of 2,060 metric tons (4.54 million pounds) of Cheddar and Monterey Jack to custom-ers in Asia, the Middle East and North Africa. The product will be delivered April through August.
In 2011, CWT has assisted members in making export sales of Cheddar, Mon-terey Jack and Gouda totaling 11,074 metric tons (24.4 million pounds) to 16 countries on three continents.
CWT will pay export bonuses to the bidders when delivery of the product is verified by the submission of the required documentation. CMN
ROSEMONT, Ill. — The Dairy Research Institute has launched Dairy Research Insights, a monthly e-newsletter featur-ing technical insights related to dairy nutrition research, product research and sustainability.
The e-newsletter is the first of its kind from the organization, and will review and interpret research studies from the Dairy Research Institute as well as other research resources to help keep the indus-try informed of current scientific insights.
Content in each issue is selected, compiled and interpreted by dairy scientists and industry leaders with the Dairy Research Institute.
“Dairy research is critical for industry innovation, evolution and growth, but it can often be difficult to keep up on all the latest findings,” says Kevin Ponti-celli, chair, Dairy Research Institute, and senior executive vice president, Dairy Management Inc. “The Dairy Research Insights e-newsletter is a platform to help
DMI launches new research e-newsletterindustry access critical technical insights that may positively influence product development, nutritional and market-ing claims, production efficiencies, consumer demand and future growth.”
Gregory Miller, president of the Dairy Research Institute and executive vice president of the National Dairy Coun-cil, notes that with the launch of the e-newsletter, the institute is aiming to be a catalyst for accelerated innovation.
The first issue highlights 15 articles, including reviews of dairy’s role in man-aging weight, protein for muscle protein synthesis, vitamin D-fortified yogurt drink for glycemic control in Type 2 Dia-betes patients, milk intake and academic performance, cheese industry working to address the sodium challenge and carbon footprint of dairy in the United States lower than previously reported.
To receive the complementary Dairy Research Insights e-newsletter each month, register at USDairy.com. CMN
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
April 22, 2011 — CHEESE MARKET NEWS® 23
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NEWS/BUSINESS
LAUSANNE, Switzerland — Tetra Pak recently opened a new state-of-the-art packaging material factory in Lahore, Pakistan. The factory is designed to meet the growing demand for aseptic packaging by Pakistan’s dairy and juice industries. Demand for dairy beverages, juices, nectars and still drinks (JNSD) has steadily been increasing over the past six years, with a 15-percent compound annual growth rate (CAGR) for dairy drinks and 16-percent CAGR for JNSD.
“More urban and young consumers as well as an emerging middle class are transforming the food and beverage industry in Pakistan, demanding new, safer and more convenient products,” says Azhar Ali Syed, managing director, Tetra Pak Pakistan. “The factory will en-able us to provide customers in Pakistan with faster delivery, better quality and more product options.”
With an initial investment of approx-imately $131 million, the new factory in Lahore is Tetra Pak’s largest facility in the Middle East. The new factory will have the initial annual production ca-pacity of 8 billion packages, manufactur-ing popular beverage cartons including Tetra Brik Aseptic, Tetra Fino Aseptic and Tetra Classic Aseptic. The facility also has the capability of producing many new products with the potential of doubling production to 16 billion packages. Its main role will be to sup-ply customers in Pakistan, thought the factory already has started exporting to other countries in the region.
The new factory complies with ISO 14001 certification for its environmen-tal management system and the ISO 9001 quality management standard. It also is World Class Manufacturing (WCM)-certified, focusing on continual improvement in quality, cost, lead time, flexibility and customer service, ac-cording to Tetra Pak officials. CMN
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WASHINGTON — A recent report from USDA’s National Agricultural Statistics Service (NASS) shows that Chicago Mercantile Exchange (CME) cash market prices for both cheese and butter increased more often than they decreased in the week before and the week after the release of USDA’s monthly “Milk Production” report.
The report, “Price Reactions After USDA Livestock Reports,” looks at price reactions to USDA’s “Milk Production” report, as well as two livestock reports.
USDA’s “Milk Production” report is released monthly and provides data on the number of milk cows, milk per cow and total milk production for the 23 major milk-producing states, as well as the entire United States. The report covers production for the month prior — for example, the report released on Jan. 19, 2010, includes data on December 2009 milk production.
The butter and Cheddar prices in USDA’s “Price Reactions” report are
NASS looks at CME cheese, butter prices relative to timing of ‘Milk Production’ releasebased on the daily cash settlement prices reported by the CME. Weekly av-erage prices are computed for the week before and the week after the release of each monthly “Milk Production” report.
NASS found that in 2010, the “Milk Production” reports released in January and February showed milk production declines of 0.4 percent and 0.6 percent, respectively, while the remaining 10 reports reported milk production in-creases ranging from 0.1 percent, in the report released March 18, to 3.6 percent, in the report released Oct. 19.
Meanwhile, in 2010 Cheddar blocks increased seven times in the week prior to the release of “Milk Production,” with those increases averaging 3.09 cents per
pound, and decreased five times, with those declines averaging 6.06 cents per pound.
For the week following release of “Milk Production” in 2010, Cheddar block prices increased nine times, with those increases averaging 2.36 cents per pound, and decreased three times, with those declines averaging 4.24 cents per pound.
For Cheddar barrels in 2010, prices increased seven times in the week prior to the release of “Milk Production,” with increases averaging 2.62 cents per pound, and decreased five times, with those declines averaging 3.68 cents per pound.
Barrels last year increased 10 times the week after the report’s release, with increases averaging 2.20 cents per pound. Barrels decreased two times in
the week following release of “Milk Production,” averaging 5.02 per pound.
Meanwhile, butter prices in 2010 increased seven times in the week prior to the release of the production report, with those increases averaging 3.92 cents per pound, and decreased four times, with those declines averaging 2.36 cents per pound.
The week after “Milk Production” was released, butter prices increased eight times, with those increases averag-ing 4.67 cents per pound, and decreased three times, with those declines averag-ing 11.15 cents per pound. (There was no change in the butter price in the week before or after “Milk Production” was released in October 2010.) CMN
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
24 CHEESE MARKET NEWS® — April 22, 2011
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NEWS/BUSINESS
GREEN BAY, Wis. — Tosca Ltd., a busi-ness that manages and services pools of returnable cheese containers, recently joined Wisconsin’s Green Tier program that includes companies in the state committed to exceeding the standards for environmental regulations.
Green Tier, the first program of its type in the nation, was created to reward environmentally-responsible businesses in Wisconsin. Qualified businesses and associations make legal commitments to superior environmental performance through agreements with the Wiscon-sin Department of Natural Resources (DNR). In exchange, these businesses are given incentives to achieve superior environmental performance.
Tosca joins Wisconsin Green Tier program“Tosca Ltd. is a great example of a
company that works hard not only at improving its own environmental per-formance but in so doing impacts the sustainability of its customers as well,” says Cathy Stepp, secretary, Wisconsin DNR. “We are pleased that Tosca is joining other Green Tier participants that are both environmentally- and economically-minded.”
Tosca was founded more than 50 years ago as a returnable and reusable container business, sorting, cleaning and refurbishing cheese barrels for the Wisconsin dairy industry. Since then, Tosca has become a major international supplier of American-style cheese manu-facturing containers with additional product lines and services for the beer, fresh produce and meat industries.
By creating processes that maintain, reuse and repair many types of contain-ers, Tosca keeps containers in service and out of landfills. When a container eventually is taken out of use, plastic parts go to plastic brokers for recycling into new products. When wood panels from Tosca’s cheese boxes no longer can be used, these are re-purposed by a beehive manufacturer.
Some of the environmentally-beneficial changes Tosca has made to its facility include:
fixtures, programmable thermostats, timers and variable speed drives on exhaust fans;
dryer 30 degrees without increasing dry time;
paint-stripping process significantly less caustic and reduce VOC emissions;
pipes to reduce heat loss and conserve natural gas; and
keg repair operation, which conserves 1.5 million gallons of water each year.
As part of its commitment to continue pursuing environmental excellence, To-sca’s Green Team is developing an envi-ronmental management system that will help identify targets and goals that will expand on current initiatives and identify new opportunities. This includes a “plan-do-check-act” process that will monitor water, electricity and natural gas con-sumption and help reduce resource use.
During a recent ceremony at the company’s Green Bay, Wis., headquar-ters, DNR administrators joined Tosca employees in celebrating the plant’s accomplishments and its commitment to a greener, more sustainable economy.
“We have been practicing many green concepts for years just because they made economic sense,” says Greg Gorski, vice president of operations, Tosca Ltd. “We are thrilled to be recog-nized as Green Tier and believe partici-pation in this program is a competitive advantage which reflects our core values and commitment to our customers, our planet and our team members.” CMN
GREEN MACHINE — Tosca employees join with administrators from the Wisconsin Department of Natural Resources (DNR) to celebrate the company’s induction into the Green Tier program. Pictured from left to right: Greg Gorski, vice president of operations, Tosca Ltd.; Kathy Stepp, DNR secretary; John Frey, president, Tosca Ltd.; Curt Dhein, plant manager, Tosca-Green Bay; Greg Breese, DNR busi-ness sector specialist; and Marcy McGrath, DNR e-cycle compliance coordinator.
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
April 22, 2011 — CHEESE MARKET NEWS® 25
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improvement and innovation. David Freedheim, sales consultant,
California Milk Advisory Board (CMAB), also sees opportunity for artisan chee-semakers as consumers continue to refine their palates and seek out more sophisticated flavor profiles.
“As the American palate becomes more sophisticated and more educated about European imports, the retail con-sumer looks to broaden their entertain-ing resources and varieties,” Freedheim says. “They now look at specialty and artisan cheese as something more than just to serve to guests, but something to enjoy on a regular basis in their homes and restaurants.
“The growing ‘foodie’ movement also has given a tremendous boost to the varieties and styles of cheeses (and other dairy foods) that consumers use regularly and look for at retail,” he adds.
Within California, artisan and farm-stead cheesemakers are found through-out the state, with the North Bay home to the largest concentration. Of California’s 43 artisan cheese companies, 22 com-mercial plants are located in the North Bay’s Marin and Sonoma counties, with four more close to production, according to Ella Rilla, community development advisor for the University of California Cooperative Extension.
Rilla recently published a profile of both counties, which provided an economic snap shot revealing a vibrant artisanal community with potential for future growth. The study, “Coming of Age: The Status of North Bay Artisan Cheesemaking,” examined Marin and Sonoma County cheesemakers, includ-ing their farms, ranches and creameries as well as their products, markets and
ARTISANContinued from page 1
plans for the future.Rilla identifies a variety of factors
helping to generate momentum within the artisan cheese sector including trav-el, interest from chefs and restaurants, media coverage, and growth of farmers markets and specialty food outlets. She notes the biggest factor affecting the “boom” is consumer interest in eating a variety of American-made cheeses.
And with a growing consumer base for such specialty products, Rilla says that pursuing a career in the artisan cheese business has proven to be a great transition for multi-generational dairy farmers looking to produce value-added products that support the viability of their farms.
“Any value-added product assists dairy producers with cash flow of their business and spreads financial risk,” Freedheim says. “Cheese is the only segment in the dairy industry that has been continually growing over the last 10 years. As the market expands, sales opportunities increase.”
In addition, a growing number of people are drawn to the artisan chee-semaking sector due to the appeal of its rural lifestyle, while others seek it out later in life as they undergo career changes. In fact, Jody Farnham, pro-gram coordinator and administrative director, Vermont Institute for Artisan Cheese (VIAC), says older adults seek-ing out new career paths are one of the two main demographics that come through the institute, which provides education, research, technical services and public service in order to help increase knowledge, appreciation and expansion of artisan cheese.
“They tend to be nontraditional students that are older, heading toward retirement or seeking out a career change,” Farnham says. “They’re very well educated and financed, and they’re
hard workers.”Farnham says the other group tends
to be semi-professional students that have a four-year degree. They tend to be worldly/well traveled with an interest in environmental or scientific subject matter.
“They come to the program having worked on co-ops in other parts of the world, doing things like creating value-added products,” she adds.
Farnham notes that per capita, Vermont has the most cheesemakers in the country. Currently, there are about 40 artisan cheesemakers in Vermont, although the number fluctu-ates a bit here and there. In the past year, Vermont has brought on five new cheese companies, with a couple more working toward building facilities and becoming licensed.
“I think Vermont will see even more cheesemakers coming out in the years ahead,” Farnham says. “We’re ever evolv-ing. There may be one or two that have gone out of business, but we seem to have new ones consistently coming on.”
Farnham also notes Vermont is home to all the different milk varieties, with a large number of goat and cow’s milk operations and a smaller number of sheep’s milk cheese producers.
While the types of milk and cheeses made may vary from operation to op-eration, Farnham says they all share in Vermont’s rich tradition of small family
farms and cheesemaking operations.“That is what Vermont is known for
— cheesemaking companies that make beautiful cheeses that win incredible awards at contests like the American Cheese Society (ACS) and world cham-pionships,” Farnham says. “Vermont is home to the cheesemakers that have chosen to be cheesemakers for the style of living — family farms that are close to the land and the animals.
“It’s really a beautiful model of sus-tainability, and I think a lot of different agricultural products are coming back around to that same model — swinging back into this search for redefining where our food sources coming from,” she adds. “Cheese has always been there at the top of the bell curve, now other industries are coming in as artisan start ups — it’s that synergy that happens when like-minded people are looking to produce high-quality products. Ver-mont has an enormous amount of good food-makers.”
Synergy and collaboration also are reflected in the attitude cheesemakers hold toward one another.
“The climate has helped new and upcoming cheesemakers — they can go to mentors like Jasper Hill,” Farnham says. “The learning curve can be cut considerably by participation in intern-ships and practicums.”
Vermont’s thriving artisan cheese Turn to VARIETY, page 26 �
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
26 CHEESE MARKET NEWS® — April 22, 2011
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industry has caught the attention of cheesemakers and organizations na-tionwide, even serving as a model for a new association based in Michigan, the Michigan Cheese Makers Cooperative
Eleven companies specializing in artisan cheesemaking teamed up to form the organization, which was cre-ated by the Michigan State University (MSU) Product Center for Agricultural and Natural Resources.
The cooperative is designed to “bring visibility to the fantastic cheeses made in the state by creameries using Michi-gan milk and artisanal techniques,” says Matt Birbeck, supply chain specialist and counselor liaison for the product center.
Funded by a grant through USDA’s Rural Cooperative Development, the cooperative is designed to help mem-bers market their artisanal cheeses to food stores in the state.
Birbeck says the idea for the coop-erative stemmed from his work with four or five cheesemakers who were producing very high-quality cheese, but had no promotional experience.
“I took the steps to go to my director
NEWS/BUSINESS
VARIETYContinued from page 25
with the really unique opportunity to form a cooperative that would highlight and market these cheese operations to the best advantage,” he says.
Birbeck also notes the goal was not to take away each company’s individual brand identity — as is the tendency with some cooperatives that grow collectively and market under one brand — but to simply highlight and promote each company individually.
“We wanted to share the cheesemak-ing story with the people who were look-ing for and consuming unique cheeses around the state,” Birbeck says.
In addition, the cooperative provides hands-on expertise, working with indi-vidual companies and providing “real,” practical resources.
“We help with product planning, marketing, supply chain, labeling and packaging,” Birbeck says. “We also work a lot with big supermarket chains in the state, connecting cheesemakers with retail opportunities.”
While organizations such as Michi-gan’s new artisan cheese cooperative are just taking off, other states are home to more established organizations. In Wisconsin, the Wisconsin Milk Mar-keting Board (WMMB) and the Dairy Business Innovation Center (DBIC) are two such groups that provide a variety
of services for artisan cheesemakers to utilize.
“These types of organizations are vi-tal to growing and sustaining the state’s burgeoning artisan cheese industry be-cause they offer much-needed business and marketing expertise,” says Jeanne Carpenter, communications director for DBIC. “Cheesemakers are good at making cheese. Very few of them are good at marketing their cheese. They just don’t have the time or know-how to do it, so there will always be a need for the WMMB, DBIC and others to help in this area.”
Wisconsin is home to some of the country’s earliest innovators in artisan cheese. Carpenter cites cheesemakers such as Anne Topham at Fantome Farm in Ridgeway, Wis., and Mary Falk at LoveTree in Grantsburg, Wis., as leaders within the industry — making small-batch artisan cheeses for 20 years or more and paving the way for the current wave of artisan cheesemakers.
“Ten years ago, Wisconsin maybe had a half dozen artisan cheesemakers. Today, we have nearly 30,” Carpenter says, noting new folks are coming onto the scene all the time. “The demand for small-batch, complex and flavor-ful cheeses is growing from chefs and consumers who increasingly seek out
new cheeses. “There is also much more help avail-
able from state organizations to help beginning cheesemakers get started,” she adds.
Carpenter notes that one of the most exciting companies coming online this spring is Happy Hollow Farms, which was formed by two family-owned dairy farms near Bayfield, Wis. The operation is comprised of Fred and Kelly Faye, who milk dairy sheep while cheesemaker Michael Stanitis milks dairy goats and then crafts fresh goat and sheep’s milk cheeses as well as several mixed-milk and raw-milk cheeses, including a bandaged Cheddar.
“Wisconsin is becoming a mecca for both dairy goat and dairy sheep farmers. We have more dairy goats and sheep than any other state in the country,” Carpenter says. “That’s partly because the terrain is good for grazing and rais-ing these animals, but also because the state has taken this burgeoning industry seriously.
“We’re the only state to have a full-time UW Extension agent who specializes in small ruminants. Our veterinarians are becoming more ad-ept at treating these animals, and the knowledge base is growing,” she adds,
Turn to REGION, page 27 �
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
NEWS/BUSINESSApril 22, 2011 — CHEESE MARKET NEWS® 27
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noting chefs and consumers also are actively seeking out sheep and goat’s milk cheeses because they are typi-cally more unusual, complex and have a good story.
When it comes to location, Carpenter says southwestern Wisconsin, or the “Driftless Region” is home to about 20 different artisan cheesemakers. She attributes this large concentration to the area’s unique geology and climate, which gives it an advantage in pasturing animals. Limestone-filtered water also is an important element of the area’s cheesemaking.
Looking to the future, Carpenter believes Wisconsin will continue to lead the pack in artisan cheesemaking.
“We have the infrastructure to grow and sustain dairy manufacturing — the milk hauling, the veterinarians, the nutritionists, the academic expertise and the organizational ability to help artisans with business and marketing,” she says, noting that nationally, the industry has enjoyed steady growth as well. “In the last five years, the number of cheese entries into both the ACS and the U.S. Championship Cheese Contest have shattered all-time records.
“There are more artisan cheeses being made today than ever before, and they’re winning more awards than ever,” she adds.
In addition to contests, festivals cel-ebrating all things cheese have proven to be a great way to spotlight the artisan cheese industry. For the California Artisan Cheese Festival, education is a primary focus, and coordinators work to facilitate educational efforts designed to help build brand loyalty and aware-ness among consumers.
“Festivals help to break down the wall of mystery between artisan cheese-makers and the people who are buying their products,” says Lynne Devereux, executive director, California Artisan Cheese Festival. “They’re a way to welcome consumers into our world.”
Festivals work to “de-mystify” cheese in several ways, Devereux says, includ-ing through the use of educational platforms that instruct on tasting and pairing as well as the cheesemakers themselves.
“Education helps people feel more comfortable, providing a personal con-nection,” she adds. “Often they become our missionaries, going out and educat-ing their friends.”
The California Artisan Cheese Festi-val works to offer educational material for both “first-time” dabblers as well as more advanced artisanal cheese enthusiasts. From introductory courses to vertical tastings that start with cow, goat and sheep’s milk and move into increasingly aged varieties of cheeses, Devereux says there is something for everyone.
“It’s really important that we con-tinue to invite those not as educated,
and make sure they feel comfortable,” she says. “Through education, our objec-tive is to bring more consumers into the artisan cheese world, breaking down the mystery and intimidation people have about artisan cheese.”
The nonprofit festival, which began in 2007, gives 10 percent of its ticket sales to several other nonprofit organi-zations that support agricultural issues.
This year’s festival was held last month in Petaluma, Calif. Devereux notes tickets for the festival’s four farm tours sold out within 48 hours of going on sale.
“Regional festivals are really the underpinning of introducing artisan cheesemakers to consumers,” she adds. “It’s impossible for consumers to go out to all the farms, so festivals really help
REGIONContinued from page 26
form that connection.”Education and community outreach
also have been an important market-ing aspects for Cypress Grove Chevre, Arcata, Calif.
“Our statement that ‘the culture is not just in the cheese’ speaks to our focus on internal education and com-munity involvement,” says Mary Keehn, owner of Cypress Grove Chevre.
When the goat’s milk cheese com-pany began operation in 1983, there was no industry, according to Keehn. The artisan cheese “scene” consisted of a scattering of cheesemakers throughout the country (mostly women) producing mostly goat’s milk cheese. There was no infrastructure, no ACS, no guild, and for the most part, cheesemakers were unaware of what their counterparts
were doing. “Sales grew organically for most
of us, often doubling every year at the beginning — but that said, if you are selling a dozen cheeses a week, it isn’t hard to double,” Keehn says. “The in-dustry has gone from being a number of somewhat isolated, rebel individuals making products that were not particu-larly appreciated or sought after, to what it is today — a group of collaborative, intertwined businesses that include cheesemakers, fine chefs, retailers and distributors who really work together to provide the nation with the high-quality, innovative products it is demanding.”
“There is no doubt that there is an active, helpful and willing com-munity available for those who want Turn to COLLABORATION page 28 �
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
28 CHEESE MARKET NEWS® — April 22, 2011
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to participate,” she adds. “That said, I do think some people prefer working alone, and have chosen cheesemaking as a lifestyle business that allows them some ability to create in quiet.”
Keehn also notes there is a great deal of community involvement through organizations such as ACS in addition to local guilds. Less structured relationships also have been helpful to those who have begun making artisan cheese more recently.
“Our customers are also part of that community by providing edu-cational opportunities, tastings and other support,” she adds. “Since the industry is growing so fast, there is not the cut throat competition that exists in many other sectors. We regularly ask for and offer help from others.”
Looking ahead, many predict the artisan cheese industry will continue to grow, attracting new fans and incorporating even more innovative flavors and varieties. According to Devereux, more cheesemakers will pursue national distribution, while others will remain small — and there will be a market for both.
“Americans are going to start keeping artisan cheese in their fridges,” she says. “It will become a staple that will fit in comfortably as part of our food world.”
Carpenter also sees a great deal of potential for current and up-and-coming cheesemakers.
“I think right now is such an exciting time in the American artisanal cheese movement. We’re seeing more young people enter the industry, more farmers deciding to build on-farm creameries, and more people choosing cheesemak-ing as a life-long career,” she says. “All of these folks have a real pas-sion for crafting the best cheese they can. I see that only continu-ing to grow in the future.” CMN
COLLABORATIONContinued from page 27
NEW PRODUCTS FOR DAIRY MANUFACTURERS
GEA Diessel GmbH flow meter features electromagnetic technologyHILDESHEIM, Germany — GEA Diessel GmbH has introduced its IZMAG flow meter that can be used to provide accurate flow measure-ment for a range of products from collection to final processing.
Company officials note that milk products come in many different forms, with different densities, viscosities and flow characteristics that can make accurate measure-ment difficult.
Electromagnetic flow meters provide a measuring solution de-signed to overcome this difficulty.
GEA Diessel’s IZMAG flow me-ter features electromagnetic flow
meter technology. It also includes Bluetooth technology for remote data collection, automatic calibra-tion and is suitable for aseptic processing.
The flow meter can be used for a variety of products including: unpasteurized whole milk, stan-dardized milk of 0.3 percent to 3.8 percent fat, ewe’s and goat’s milk, soy milk, extended shelf life milk, condensed milk and coffee cream, cream, yogurt and kefir, buttermilk and soured milk, and whey.
Company officials note the same metering devices may be used to measure accurately the quality of
milk collected by the road tanker in accordance with weights and measurement regulations; during processing to accurately measure and to control flow rates and addi-tive dosing levels; and control the filling process at the end of the production chain.
Electromagnetic flow meters do not have any moving parts, and are suitable for use at high temperatures or under vacuum conditions.
For additional information, contact Hermann Hartmann at [email protected] or visit www.diessel.com. CMN
Biocatalysts unveils new lipase enzymeCARDIFF, United Kingdom — Bio-catalysts has introduced a microbial pancreatic lipase enzyme, which the company says allows enzyme manufac-tured cheese (EMC) manufacturers to enter the halal, kosher and vegetarian markets.
Lipomod 801MDP is suitable for all EMC applications such as cheese slices, sauces and snacks.
For more information, e-mail c h e e s e @ b i o c a t s . c o m o r v i s -it www.biocatalysts.com. CMN
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
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EQUIPMENT 1EQUIPMENT 1
Cheese Blender/Formulator����0������'���#!$�"-���"���(��� ����"��')$$ ��&�#��$&�!�)!�%)� �(-�"�()&� �����'���)&&�"( -���'����#��#$$#&()"�(-��#&�������'�� �"��&� #&!) �(#&�$#'�(�#"� #��(����"�#)&���"#����*����� �"(��"�(����&#��''�"����*�'�#"���
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Tina Lai, Recruiter ������������������
HELP WANTED 7
HARRYDAVIS& COMPANY
Details & Online Bidding available at:www.harrydavis.com
For Color Brochure: (412) 765-1170fax (412) 765-0910 - [email protected]
former PROTIENT - Wed., May 18Faribault, MN - 45 miles south of Minneapolis
AUCTION!EVAPORATING & DRYING FACILITY
Vice%President%of%Operations
��$-4!**��������)����������� -/$6 ��(�-& /!leader!in!specialty!cheese!production!for!*1 -� ��� 4 �-.�� $.� . &$)"� �)� 3 �0/$1 �/*� %*$)� /# $-� � )$*-���)�" ( )/�� �(���� +*-/$)"� /*� /# � �- .$� )/�� /# ���� *!��+ -�/$*).�2$''��$- �/�/# �(�)0!��/0-$)"��+'�)/� )"$) -$)"��)��.#$++$)"�!0)�/$*).�/*� !! �/$1 '4��)�� !6�$ )/'4�� '$1 -���.�! ��,0�'$/4�+-*�0�/�/#�/�( /.�/# �./-�/ "$���0.$) ..�"*�'.�*!�/# ��*(+�)4��!
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Peggy%White%Human%Resource%Manager%[email protected]
WANTED:
Used Cryovac equipment for sealing 40-lb. blocks and wheels. The units will be used sparingly (10 to 20 hours per month). Looking for one to three units in good working condition or that need only minor rebuilding.
�� � �� ����������� ����������including age make, model and pictures if possible. Contact Tom at (920) 475-4648.
HELP WANTED 7
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
30 CHEESE MARKET NEWS® — April 22, 2011
NEWS/BUSINESS
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The successful applicant will take an active role in developing, design-ing and carrying out Applied research work as it involves day-to-day operations of the Cheese Industry and Applications Program (CIAP). Determine the appropriate experimental design in response to the research objectives and coordinate research trials. Candidate must exhibit excellent communication and people skills. Master’s degree required and three years experience in cheese manufacturing, dairy � � �������� �� ��� ����http://ohr.wisc.edu/pyl/pv_066965.html
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decisions on farm programs should be made by congressional agriculture committees during negotiations on the next Farm Bill.
“Instead of making arbitrary cuts now through an appropriations bill, we urge that the Agriculture Committee be given the responsibility for crafting any necessary reductions as part of the reauthorization of the farm bill,” say Conrad and Baucus, both senior members of the Senate Ag Committee, which has started hearings on the 2012 Farm Bill.
“The nation’s tenuous fiscal condi-tion will likely make development of the next farm bill among the most challenging in history,” Conrad said during a meeting on the bill this week. “Establishing common objectives and priorities early on is an important step in ensuring another farm bill that benefits family farmers.”
Conrad at the meeting also detailed priorities for the 2012 Farm Bill, in-cluding:
for producers, recognizing that current high commodity prices may not last and that farmers have faced rapidly rising farm input costs;
crop insurance conservation programs;
overlap to improve program efficiency, implementation and the delivery of benefits; and
-sion of renewable energy production.
Meanwhile, several senators last week revived a bill that would extend mandatory country of original labeling (COOL) to dairy products.
The bill — supported by Sens. Al Franken, D-Minn., Sherrod Brown, D-Ohio, Charles Schumer, D-N.Y., and Kirsten Gillibrand, D-N.Y. — would be an extension of USDA’s current COOL law, which went into effect in 2008 and required COOL for meats, produce and nuts.
Last introduced by Franken, Brown and former Sen. Russ Feingold, D-Wis., in 2009, the Dairy COOL Act would extend the requirements to dairy prod-ucts including milk, cheese, yogurt, ice cream and butter.
The bill received praise from the California Farmers Union (CFU) and California Dairy Campaign (CDC). The groups fought for passage of the current USDA COOL law.
“Country of origin labeling of dairy products will enable dairy producers to differentiate their products in the
grocery store,” says Joe Augusto, CDC president.
However, the measure faces opposi-tion from IDFA.
“We now export more dairy than we import, so I worry about legislation like this that could invite retaliation from our trading partners and limit a growing part of our industry,” says Jerry Slominski, IDFA senior vice president of legislative affairs and economic policy. “Imposing additional labeling mandates on dairy products, which are not imposed on other processed foods, will reduce demand for dairy products and encourage food manufacturers to substitute vegetable-based or other protein ingredients instead of dairy ingredients.”
The National Milk Producers Federa-tion (NMPF) also has opposed extend-ing COOL to dairy.
Meanwhile, NMPF this week en-dorsed a new Senate bill that would allow dairy farmers to utilize a federal visa program to bring foreign dairy workers to the United States.
Sens. Patrick Leahy, D-Vt., Mike Enzi, R-Wyo., Herb Kohl, D-Wis., Schum-er, Gillibrand and Bernie Sanders, D-Vt., have introduced the H-2A Improvement Act, which would authorize foreign dairy workers, sheep herders and goat herders to remain in the United States
for an initial period of three years. It also gives the U.S. Bureau of Citizenship and Immigration Services the authority to approve a worker for an additional three-year period.
“Finding qualified workers to help milk the cows remains a real challenge for dairy farms all across America,” says Jerry Kozak, president CEO of NMPF. “Expanding the H-2A program so that dairy farmers can use it is one answer to that challenge.”
Kozak notes there now is a greater sense of urgency because of heightened immigration enforcement activities directed at employers, including dairy farmers. Passage of the bill is critical for the continuation of milk production in the United States, he says.
He adds that the bill “provides a measure of equity so that dairy own-ers are treated the same as other farm employers who currently use the H-2A program.” Under current law, farms that hire seasonal work-ers to harvest fruits and vegetables can utilize the H-2A visa program. Dairy farms are not included because milk production is not considered seasonal work, a situation that is “unfair to one of the largest agri-cultural sectors,” Kozak says. CMN
BUDGETContinued from page 1
Total cheese in cold storage declinesWASHINGTON — Butter in cold storage in the United States totaled 144.4 million pounds as of March 31, 2011, up 4 percent from Feb. 28, 2011’s 138.7 million pounds but 26 percent lower than the 195.9 million pounds of butter in cold storage at the end of March 2010, according to data released Thursday by USDA’s National Agricultural Statistics Ser-vice (NASS).
Total natural cheese in cold stor-age as of March 31, 2011, was 1.03 billion pounds, down less than 1 percent from February 2011 and 3 percent higher than the 1.00 billion pounds in cold storage at the end of March 2010.
American cheese stocks as of March 31, 2011, totaled 614.1 million pounds, NASS reports, down 1 percent from Feb. 28, 2011’s 620.3 million pounds but 2 percent higher than the 602.1 million pounds of American cheese in cold storage at the end of March 2010, NASS reports.
According to NASS, Swiss cheese in cold storage totaled 32.3 million pounds as of March 31, 2011, down 7 percent from Feb. 28, 2011’s 34.6 million pounds but up 20 percent from the 27.0 million pounds in cold storage as of March 31, 2010.
Other natural cheese in cold stor-age totaled 386.9 million pounds as of the end of March 2011, 2 percent higher than Feb. 28, 2011’s 379.7 million pounds and 3 percent higher than the 375.7 million pounds in cold storage March 31, 2010. CMN
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
NEWS/BUSINESSApril 22, 2011 — CHEESE MARKET NEWS® 31
NASSContinued from page 1
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February revised production in the 23 major states, at 13.99 billion pounds, was up 2.3 percent from February 2010. The February revision represents a decrease of 14 million pounds or 0.1 percent from last month’s preliminary production estimate.
For the entire United States, March milk production is estimated at 16.98 billion pounds, an increase of 2.2
percent from the previous year. NASS reports there were 9.18 million cows on farms, 76,000 head more than the previous year and 17,000 head more than the previous month. Production per cow in the United States in March was an estimated 1,851 pounds, 25 pounds more than in March 2010.
Production per cow in the 23 major states averaged 1,872 pounds for March, 24 pounds above March 2010. In the 23
major states NASS reports there were 8.42 million cows, 93,000 head more than in March 2010 and 17,000 head more than in February 2011.
California led the nation’s milk pro-duction with 3.59 billion pounds of milk in March, 3.1 percent more than a year earlier. There were 1.76 million cows on California farms in March, up 1,000 head from a year earlier and up 4,000 head from February 2011. March 2011 production
per cow in California averaged 2,040 pounds, up 60 pounds from a year earlier.
Wisconsin followed with 2.26 billion pounds of milk produced in March, up 1.3 percent from its production a year earlier. Wisconsin was home to 1.27 million cows in March, an increase of 6,000 head from a year earlier and unchanged from February 2011. Produc-tion per cow in March averaged 1,785 pounds, according to NASS. CMN
NCIMS to consider revisions to Grade A plant, farm rules April 28-May 4BALTIMORE, Md. — The National Conference on Interstate Milk Ship-ments (NCIMS) will consider 91 proposals to change Grade A plant and farm regulations in the Pasteur-ized Milk Ordinance (PMO) at its biennial meeting April 28-May 4 in Baltimore, Md.
The International Dairy Foods Association (IDFA) notes that these proposals affect all dairy plants produc-ing Grade A products including fluid milk, cream products, yogurt, cottage cheese, eggnog, buttermilk and many dried dairy products.
“Every two years, the conference brings together dairy industry partners, state regulators and FDA officials to review and debate the public health impact and technical aspects of pro-posed changes to the PMO and other interstate milk shippers regulations,” says Jon Gardner, IDFA vice president
of regulatory affairs and international standards. “This year we’ve worked diligently with members and industry partners to find common ground for solutions that we hope will be accept-able to all.”
Cary Frye, IDFA vice president of scientific and regulatory affairs at IDFA, is this year’s NCIMS committee chair. Frye and Gardner this week met with their counterparts from the National Milk Producers Federation to discuss the proposals and build consensus. The also met with FDA officials this week to review key proposals before the conference.
IDFA notes that its constituent orga-nization, the Milk Industry Foundation (MIF), has submitted four proposals this year for consideration, and a delegation of MIF members will attend the meeting.
One MIF proposal would establish an ad hoc committee to align the PMO
with the FDA Food Safety Moderniza-tion Act, and another would amend the current PMO definition for milk products to clarify how different forms and types of milk and milk-derived ingredients will be determined on a minimum-weight basis.
MIF also proposes to increase the inspection frequency for state ratings of farms, plants and other facilities from 24 months to 36 months. The final MIF proposal seeks to modify the current state enforcement rating for Grade A plants to make them more uniform throughout the NCIMS program.
So far, 300 regulators and industry participants, including 120 processors, have registered to attend the confer-ence, IDFA says.
For more information, contact Gardner at 202-220-3544, e-mail: [email protected]; or Frye at 202-220-3543, e-mail: [email protected]. CMN
Wisconsin governor signs bill to extend dairy, livestock tax credit to 2017MADISON, Wis. — Wisconsin Gov. Scott Walker this week signed a bill that extends a non-refundable dairy and livestock invest-ment tax credit until January 2017.
The action received praise from the Wis-consin Dairy Business Association (DBA).
“Every tool in the tool box helps when a dairy producer invests in the expan-sion or modernization of their facility, says Jerry Meissner, DBA president. “It helps to reduce the risk of investment and tells Wisconsin dairy producers that Wisconsin is the right place to develop a dairy business.”
Meissner notes the state’s dairy industry generates more than $26.5 billion in eco-nomic activity each year and employees about 150,000 Wisconsin residents. CMN
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
32 CHEESE MARKET NEWS® — April 22, 2011
NEWS/BUSINESS
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Michigan Milk Producers Association pays members $4.8 millionNOVI, Mich. — The Michigan Milk Producers Association (MMPA) made cash payments of $4.8 million in equity retirements in April.
This is in addition to the $1.9 million in cash patronage from 2010 earnings paid to members earlier this year, which represents approximately 28 percent of the $6.8 million allocated net earnings gener-ated by the cooperative in fiscal year 2010. The cash patronage returned includes 100 percent of the farm supply earnings and 25 percent of the milk marketing earnings.
Combined, MMPA has paid $6.7 million in addition to the monthly milk check to its dairy farmer members in the first four months of 2011.
“The continued success of our opera-tions allows us to make these extra cash payments to our members,” says Clay Galarneau, MMPA general manager. “It is gratifying that the efforts of the cooperative have generated additional premiums that can be returned to the members at this time.”
During the past fiscal year, MMPA returned extra cash payments in the form of equity payments, cash patron-age refunds and a “13th” check in October. These payments totaled more than $9.7 million or about 25 cents per hundredweight on all the milk produced by MMPA members.
In addition, MMPA says it has
achieved these benchmark goals through earnings from the association’s plant operations and from its bulk milk marketing operations.
Cash patronage funds and equity al-locations are based on the amount of milk each individual member farm marketed and on the supplies purchased through the cooperative during the year in which the earnings were achieved. Under the current board policy, the non-cash balance of the equity allocation will be revolved back to the members in future years.
MMPA is a member owned and op-erated dairy cooperative serving more than 2,100 dairy farmers in Michigan, Wisconsin, Ohio and Indiana. CMN
GMA, FMI select agency partners for nutrition campaignWASHINGTON — The Grocery Manu-facturers Association (GMA) and the Food Marketing Institute (FMI) have announced the selection of three agencies to support the GMA-FMI Nutrition Keys front-of-pack nutrition labeling initiative.
BBDO New York (along with its sister companies Integer, PHD and Proximity), Edelman and FoodMinds have been selected to work with GMA and FMI and their member companies to de-velop a $50-million, 12-month consumer education campaign designed to build awareness, understanding and use of the Nutrition Keys icon.
The campaign will educate consum-ers through a variety of communications channels, including point-of-purchase strategies, advertising and digital/social media.
“Because we are committed to pro-viding consumers with the innovative products, tools and information they need to build and maintain a healthy diet, Nutrition Keys is a top priority for America’s food and beverage companies,” says Pamela Bailey, president and CEO of GMA.
Leslie Sarasin, FMI president and CEO, also notes that supermarkets have many interactions with shoppers every day.
“We are committed to improving the health and nutrition of our customers, and have gathered some of the best minds in the business to help construct a creative and successful consumer educa-tion campaign that will reach customers at the point-of-purchase and help them achieve a healthy diet,” she adds. CMN
Performance Food Group announces expansionRICHMOND, Va. — Performance Food Group (PFG) is expanding its 80,000-square-foot Performance Food-service Roma-Springfield, Mo., distribu-tion facility.
The expansion will add 35,000 square feet to the current facility and provides PFG with significant capacity for growth.
“This is an exciting opportunity to be able to expand our business in our hometown,” says Fred Dallas, presi-dent, Performance Foodservice Roma - Springfield, Mo.
The company serves more than 1,500 customers throughout a nine state area that includes pizzerias, Italian and Mexican restaurants, and regional chains. It is a provider of national and proprietary branded food and food-related products
The expansion is estimated to add more than 40 new jobs throughout the next five years to the existing workforce of over 100 employees. CMN
