Partnership between Domino’s, DMI still strong after fi ve ...
16
Reprinted with permission from the Nov. 8, 2013, edition of CHEESE MARKET NEWS ® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com U.S. cheese production up 2.3 percent in September WASHINGTON — Total U.S. cheese production in September, excluding cottage cheese, totaled 891.8 million pounds, accord- ing to data released this week by USDA’s National Agricultural Statistics Service (NASS). (All figures are rounded. Please see CMN’s Dairy Production chart on page 10.) This was up 2.3 percent from September 2012’s 871.5 million pounds but down 1.5 percent, adjusted for an average daily basis, from August 2013’s 935.6 million pounds. Total Italian-type cheese production was 385.0 million pounds in September, up 4.5 percent from a year earlier. Mozzarella, the largest component of Italian-type production and the most- produced cheese in the United States, experienced a 4.7-percent increase in production from a year earlier to 300.0 million pounds. NASS reports American-type cheese production was 347.1 Plourd: Convergence in dairy trade isn’t around the corner By Kate Sander CHICAGO — While U.S. dairy exports continue to rise, and the world appears to become a smaller place with more and more international trade, there are many factors still at play that will define the future, Phil Plourd, president & CEO, Blimling and Associates, Madison, Wis., told attendees at an educational session at this week’s International Dairy Show. “As we think about global markets and dairy, there’s a lot of things that are assumed or presumed or that we think exist that may not exist,” Plourd says. His session, “Convergence: Fleeting or Forever,” explored market structure and barriers to convergence, a.k.a. that time when specific dairy prices are essentially the same worldwide. One obvious hindrance to convergence, Plourd notes, is there are not one or two but at least 11 easily identifiable ways to price nonfat dry milk/skim milk powder (NDM/SMP)worldwide. These include the Chicago Mercantile Exchange, the National Dairy Products Sales Re- port, GlobalDairy Trade and NZX, just to name a few. That’s in sharp contrast to corn, coffee, sugar and crude oil — which each have only one or two major markets. While milk powder markets usually track each other to some extent, Plourd says a closer examination reveals prices that are hardly uniform — including just this past May when milk powder prices were tracking as much as a $1 apart per pound. Another important issue affecting convergence is that the United States and the rest of the world don’t trade the same basic products. The United States primarily makes NDM while other countries market SMP. The United States makes 80 percent salted butter; the majority of the world makes 82 percent unsalted butter. U.S. markets focus on Cheddar and Mozzarella prices; other markets focus on Gouda. Volume 33 November 8, 2013 Number 42 By Alyssa Sowerwine ROSEMONT, Ill. — Five years ago, a well-known national pizza brand was looking to enhance its product line. At the same time, the U.S. dairy industry was looking to address a decline in consumption of cheese on pizzas. Out of this mutual need for change, a partnership between Domino’s Pizza and Dairy Management Inc. (DMI) was formed. DMI is funded by America’s nearly 49,000 dairy farmers, as well as dairy importers. Created to help increase sales and de- mand for dairy products, DMI and its related organizations work to increase demand for Partnership between Domino’s, DMI still strong after five years dairy through research, edu- cation and innovation, and to maintain confidence in dairy foods, farms and businesses. Dairy farmers pay 15 cents and dairy importers pay 7.5 cents for every 100 pounds of milk (or the equivalent thereof) they sell or import into a ge- neric dairy product promotion fund called the “dairy checkoff” that DMI manages along with state and regional promotion groups. That money, with USDA oversight, is used to fund programs aimed at promoting dairy consumption and protect- ing the positive image of dairy farmers, dairy products and the dairy industry. “When we entered into this partnership with Domino’s in 2009, our objective was to revitalize pizza as it relates to cheese,” says Tom Gallagher, CEO, DMI. “Demand for cheese had been slowing down in the last five years, and the amount of cheese used on pizza, for a number of reasons, had been declining.” Gallagher notes that at the time, many pizza companies were adding pasta and sand- wiches to their menus, moving away from focusing on their core product as well as away from products that featured more dairy. With the escalation of commodity costs, many pizza companies tried to compensate by taking cheese off pizzas or reducing the quality, but as a result, consumers were mov- ing into other categories to meet their in-restaurant eating needs, he adds. “Realizing we needed to start somewhere rather than do many things with many people, we thought, let’s get a stake in the ground. We chose Domino’s, although we wanted it to be a stimulation across the pizza category for cheese sales, from other national brands to mom and pop shops,” Gallagher says. In selecting promotional partners, DMI looks for orga- nizations that share common values with the dairy industry — such as integrity and indus- try leadership, Gallagher notes. Partners also should want to work together to expand the reach of nutrient-rich dairy products and ingredients, and bring to the table many addi- tional resources in advancing dairy product innovation, he says. In Domino’s, DMI found a group of friendly people with an eagerness to learn about formulations for cheese on pizzas as well as information about consumers related to dairy consumption. Early on in the partner- ship, new product marketing staff and culinary staff from Domino’s spent a week at the Center for Dairy Research in Madison, Wis., learning more about cheese and its various uses. The group also toured independent pizza restaurants in the Madison area to gain additional ideas. Patrick Doyle, CEO, Domi- no’s Pizza, notes the partner- ship began with specific prod- uct promotion and new product development, starting with the launch of a new American Legends line of specialty piz- zas featuring 40 percent more cheese than Domino’s standard pies. The line featured several varieties of cheeses on the piz- zas, ranging from Mozzarella to Cheddar to Feta. The launch proved success- ful in the following years, lead- ing to the continuation of the partnership and diversification of marketing efforts. “We’ve seen higher con- sumer acceptance and liking of our pizzas since we added more cheese,” says Joe Jordan, vice president of marketing Relco awarded $22.7 million in case against CFR A INSIDE Turn to PIZZA, page 14 a Turn to SEPTEMBER, page 10 a MINNEAPOLIS — Relco LLC, Wilmar, Minn., re- cently won a $22.7 million jury verdict in a case of misappropriation of con- fidential business infor- mation. The verdict was rendered on Oct. 25 in Kandiyohi County (Minn.) District Court following a nine-day trial. The jury found that two former employees of Relco Turn to RELCO, page 9 a Turn to PLOURD, page 10 a Scan this code for breaking news and the latest markets! ✦ Guest column: ‘Another step closer to a one-stop shop.’ For details, see page 4. ✦ Tasting seminar looks at histories behind Wisconsin, European cheeses. For details, see page 6. ✦ Lawmakers prepare for farm bill talks to resume. For details, see page 8. ✦ September U.S. milk production up 1 percent. For details, see page 15.
Transcript of Partnership between Domino’s, DMI still strong after fi ve ...
Reprinted with permission from the Nov. 8, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
U.S. cheese production up 2.3 percent in SeptemberWASHINGTON — Total U.S. cheese production in September, excluding cottage cheese, totaled 891.8 million pounds, accord-ing to data released this week by USDA’s National Agricultural Statistics Service (NASS). (All fi gures are rounded. Please see CMN’s Dairy Production chart on page 10.)
This was up 2.3 percent from September 2012’s 871.5 million pounds but down 1.5 percent, adjusted for an average daily basis, from August 2013’s 935.6 million pounds.
Total Italian-type cheese production was 385.0 million pounds in September, up 4.5 percent from a year earlier. Mozzarella, the largest component of Italian-type production and the most-produced cheese in the United States, experienced a 4.7-percent increase in production from a year earlier to 300.0 million pounds.
NASS reports American-type cheese production was 347.1
Plourd: Convergence in dairy trade isn’t around the corner By Kate Sander
CHICAGO — While U.S. dairy exports continue to rise, and the world appears to become a smaller place with more and more international trade, there are many factors still at play that will defi ne the future, Phil Plourd, president & CEO, Blimling and Associates, Madison, Wis., told attendees at an educational session at this week’s International Dairy Show.
“As we think about global markets and dairy, there’s a lot of things that are assumed or presumed or that we think exist that may not exist,” Plourd says.
His session, “Convergence: Fleeting or Forever,” explored market structure and barriers to convergence, a.k.a. that time when specifi c dairy prices are essentially the same worldwide.
One obvious hindrance to convergence, Plourd notes, is there are not one or two but at least 11 easily identifi able ways to price nonfat dry milk/skim milk powder (NDM/SMP)worldwide. These include the Chicago Mercantile Exchange, the National Dairy Products Sales Re-port, GlobalDairy Trade and NZX, just to name a few. That’s in sharp contrast to corn, coffee, sugar and crude oil — which each have only one or two major markets. While milk powder markets usually track each other to some extent, Plourd says a closer examination reveals prices that are hardly uniform — including just this past May when milk powder prices were tracking as much as a $1 apart per pound.
Another important issue affecting convergence is that the United States and the rest of the world don’t trade the same basic products.
The United States primarily makes NDM while other countries market SMP. The United States makes 80 percent salted butter; the majority of the world makes 82 percent unsalted butter. U.S. markets focus on Cheddar and Mozzarella prices; other markets focus on Gouda.
Volume 33 November 8, 2013 Number 42
By Alyssa Sowerwine
ROSEMONT, Ill. — Five years ago, a well-known national pizza brand was looking to enhance its product line. At the same time, the U.S. dairy industry was looking to address a decline in consumption of cheese on pizzas.
Out of this mutual need for change, a partnership between Domino’s Pizza and Dairy Management Inc. (DMI) was formed.
DMI is funded by America’s nearly 49,000 dairy farmers, as well as dairy importers. Created to help increase sales and de-mand for dairy products, DMI and its related organizations work to increase demand for
Partnership between Domino’s, DMI still strong after fi ve years
dairy through research, edu-cation and innovation, and to maintain confi dence in dairy foods, farms and businesses.
Dairy farmers pay 15 cents and dairy importers pay 7.5 cents for every 100 pounds of milk (or the equivalent thereof) they sell or import into a ge-neric dairy product promotion fund called the “dairy checkoff” that DMI manages along with state and regional promotion groups. That money, with USDA oversight, is used to fund programs aimed at promoting dairy consumption and protect-ing the positive image of dairy farmers, dairy products and the dairy industry.
“When we entered into this partnership with Domino’s in 2009, our objective was to revitalize pizza as it relates to cheese,” says Tom Gallagher, CEO, DMI. “Demand for cheese had been slowing down in the last fi ve years, and the amount of cheese used on pizza, for a number of reasons, had been declining.”
Gallagher notes that at the time, many pizza companies were adding pasta and sand-wiches to their menus, moving away from focusing on their core product as well as away from products that featured
more dairy.With the escalation of
commodity costs, many pizza companies tried to compensate by taking cheese off pizzas or reducing the quality, but as a result, consumers were mov-ing into other categories to meet their in-restaurant eating needs, he adds.
“Realizing we needed to start somewhere rather than do many things with many people, we thought, let’s get a stake in the ground. We chose Domino’s, although we wanted it to be a stimulation across the pizza category for cheese sales, from other national brands to mom and pop shops,” Gallagher says.
In selecting promotional partners, DMI looks for orga-nizations that share common values with the dairy industry — such as integrity and indus-try leadership, Gallagher notes. Partners also should want to work together to expand the reach of nutrient-rich dairy products and ingredients, and bring to the table many addi-tional resources in advancing dairy product innovation, he says.
In Domino’s, DMI found a group of friendly people with an eagerness to learn about formulations for cheese on
pizzas as well as information about consumers related to dairy consumption.
Early on in the partner-ship, new product marketing staff and culinary staff from Domino’s spent a week at the Center for Dairy Research in Madison, Wis., learning more about cheese and its various uses. The group also toured independent pizza restaurants in the Madison area to gain additional ideas.
Patrick Doyle, CEO, Domi-no’s Pizza, notes the partner-ship began with specifi c prod-uct promotion and new product development, starting with the launch of a new American Legends line of specialty piz-zas featuring 40 percent more cheese than Domino’s standard pies. The line featured several varieties of cheeses on the piz-zas, ranging from Mozzarella to Cheddar to Feta.
The launch proved success-ful in the following years, lead-ing to the continuation of the partnership and diversifi cation of marketing efforts.
“We’ve seen higher con-sumer acceptance and liking of our pizzas since we added more cheese,” says Joe Jordan, vice president of marketing
Relco awarded $22.7 million in case against CFR
A
INSIDE
Turn to PIZZA, page 14 a
Turn to SEPTEMBER, page 10 a
MINNEAPOLIS — Relco LLC, Wilmar, Minn., re-cently won a $22.7 million jury verdict in a case of misappropriation of con-fi dential business infor-mation. The verdict was rendered on Oct. 25 in Kandiyohi County (Minn.) District Court following a nine-day trial.
The jury found that two former employees of Relco
Turn to RELCO, page 9 aTurn to PLOURD, page 10 a
Scan this code
for breaking
news and the
latest markets!
✦ Guest column: ‘Another step closer to a one-stop shop.’ For details, see page 4.
✦ Tasting seminar looks at histories behind Wisconsin, European cheeses. For details, see page 6.
✦ Lawmakers prepare for farm bill talks to resume. For details, see page 8.
✦ September U.S. milk production up 1 percent. For details, see page 15.
Reprinted with permission from the Nov. 8, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
MARKET INDICATORS
2 CHEESE MARKET NEWS® — November 8, 2013
DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions.
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CLASS III PRICE (Dollars per hundredweight, 3.5% butterfat test)
YEAR2007200820092010201120122013
JAN13.5619.3210.7814.5013.4817.0518.14
FEB14.18 17.03 9.31 14.2817.0016.0617.25
MAR15.0918.0010.4412.7819.4015.7216.93
APR16.0916.7610.7812.9216.8715.7217.59
MAY17.6018.18 9.8413.3816.5215.2318.52
JUN20.1720.25 9.9713.6219.1115.6318.02
JUL21.3818.24 9.9713.7421.3916.6817.38
AUG19.8317.3211.2015.1821.6717.7317.91
SEP20.0716.2812.1116.2619.0719.0018.14
OCT18.7017.0612.8216.9418.0321.02 18.22
NOV19.2215.5114.0815.4419.0720.83
DEC20.6015.2814.9813.8318.7718.66
(These data, which include government stocks and are reported in thousands of pounds, are based on reports from a limited sample of cold storage centers across the country. This chart is designed to help the dairy industry see the trends in cold storage between the release of the National Agricultural Statistics Service’s monthly cold storage reports.)*Numbers unavailable due to the government shutdown.
ButterCheese
11,854105,409
-860-3,439
9,226120,969
-172-688
+2,628-15,560
-1 -1
Weekly Cold Storage Holdings November 4, 2013 On hand Week Change since Nov. 1 Last Year Monday Change Pounds Percent Pounds Change
Class 4aClass 4b
Butterfat$ 1.6121/lb.$ 1.6121/lb.
SNF$ 1.6506/lb.$ 1.2851/lb.
Equivalent $ 20.00/cwt.$ 16.82/cwt.
California Minimum PricesReleased November 1, 2013
Dry Products* November 8, 2013
DRY BUTTERMILK(FOB)Central & East: $1.7500(+7)-$1.8500(+6).(FOB) West: $1.7200(+4)-$1.8500(+7); mostly $1.7400(+1)-$1.7500.
EDIBLE LACTOSE(FOB)Central and West: $.4500(-3)-$.7400(-26); mostly $.5700(-1)-$.7200.
NONFAT DRY MILKCentral & East: low/medium heat $1.8800(+4)-$1.9700(+2); mostly $1.8900(+1 1/2)-$1.9300. high heat $1.9600(+3)-$1.9825.West: low/medium heat $1.8200(+2)-$1.9500(+1); mostly $1.8800(+2)-$1.9100(+1). high heat $1.9450(+3 1/2)-$1.9950(+1 1/2).Calif. manufacturing plants: extra grade/grade A weighted ave. $1.8390(+.0171) based on 7,501,460 lbs. Sales to CCC: 0 lbs.
WHOLE MILK POWDER (National): $1.9000-$2.0700(-4).
DRY WHEYCentral: nonhygroscopic $.4700-$.6100(-1); mostly $.5200-$.5600.West: nonhygroscopic $.5200(-1)-$.5925; mostly $.5400-$.5900(+1/2).(FOB) Northeast: extra grade/grade A $.5400(+1)-$.6100(-1).
ANIMAL FEED (Central): Whey spray milk replacer $.4050(+4 1/2)-$.5200.
WHEY PROTEIN CONCENTRATE (34 percent): $1.4500(+10)-$1.7050(+1/2); mostly $1.5250(+2)-$1.6250(+2).
CASEIN: Rennet $4.7000-$5.0000; Acid $4.8000-$5.4000.
*Source: USDA’s Dairy Market News
Total Contracts Traded/Open Interest
NOV13DEC 13JAN14FEB14MAR14APR 14MAY14JUN14JUL14AUG14SEP14OCT14NOV14DEC14
DRY WHEY FUTURES for the week ended November 7, 2013 (Listings for each day by month, settling price and open interest)
56.5056.7556.2556.0355.5355.0054.7553.9053.0053.0051.0051.0050.5050.00
265280241237275178183219104
7756344554
69/2,248Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.
Fri., Nov. 1 Mon., Nov. 4 Tues., Nov. 5 Wed., Nov. 6 Thurs., Nov. 7
10/2,206
57.2357.2057.0057.0055.7555.0054.7553.9053.0053.0051.0051.0050.5050.00
265280242238275178183219104
7856344554
6/2,251
56.5056.7556.2556.0355.5055.0054.7553.9053.0053.0051.0051.5050.5050.00
261278240236275178182219106
7849274655
57.0057.9057.5057.0056.0055.5054.4053.9053.0052.5051.0051.5050.5049.75
260273241229273171178219107
7849274655
103/2,230
56.5057.5057.5056.5056.0055.5054.4053.9053.0052.5051.0051.5050.5049.75
260277241230273171178219107
7849274655
12/2,211
Total Contracts Traded/Open Interest Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.
NOV13DEC13JAN14FEB14MAR14APR14MAY14JUN14JUL14AUG14SEP14OCT14NOV14DEC14
CHEESE FUTURES for the week ended November 7, 2013 (Listings for each day by month, settling price and open interest)
1.8631.7641.6901.6761.6681.6671.6641.6841.7201.7261.7351.7301.7311.725
1,4941,511
901696736607588551253262263249254229
114/8,594
Fri., Nov. 1 Mon., Nov. 4 Tues., Nov. 5 Wed., Nov. 6 Thurs., Nov. 7
1.8771.7911.7101.6811.6761.6671.6671.6841.7201.7261.7351.7301.7311.725
1,4921,514
896692728603580546253262263249254229
54/8,561
1.8651.7701.6921.6761.6681.6671.6641.6841.7201.7261.7351.7301.7311.725
1,4941,512
911709737611597560254271263251256231
118/8,657
1.8761.8141.7221.6811.6661.6631.6651.6851.7151.7261.7351.7301.7311.725
1,4741,500
882679706600578542253262263249254229
47/8,471
1.8771.7931.7101.6881.6761.6631.6701.6901.7201.7261.7351.7301.7311.725
1,4921,509
888685727600579543253262263249254229
69/8,533
Monday Tuesday Wednesday Thursday Friday
Chicago Mercantile Exchange
Nov. 4 Nov. 5 Nov. 6 Nov. 7 Nov. 8
Weekly average (Nov. 4-8): Barrels: $1.8230(-.0130); 40-lb. Blocks: $1.8865(+.0030).Weekly ave. one year ago (Nov. 5-9, 2012): Barrels: $1.9610; 40-lb. Blocks: $2.0240.
Cheese BarrelsPriceChange
Cheese 40-lb. blockPriceChange
Extra Grade NDMPriceChange
Grade A NDMPriceChange
Weekly average (Nov. 4-8): Extra Grade: $1.8620(+.0120); Grade A: $1.9200(+.0160).
Grade AA ButterPriceChange
Class II Cream (Major Northeast Cities): 2.0203(+.0625)–2.1250(+.0348).
Weekly average (Nov. 4-8): Grade AA: $1.5570(+.0605).
$1.5600NC
Sign up for our daily fax or e-mail service for just $104 a year. Call us at 608-288-9090.
Cash prices for the week ended November 8, 2013
$1.8700 NC
$1.9025 NC
$1.8600+1
$1.9100NC
$1.5600+1 1/2
$1.7950 -1/4
$1.9025 NC
$1.5600NC
$1.8700 +1
$1.9325+1 3/4
$1.5600NC
$1.8700 NC
$1.9325NC
$1.7825 -1 1/4
$1.8225 -8
$1.7975 -7 1/4
$1.9025 NC
$1.8600 NC
$1.9150 +1/2
$1.8700 NC
$1.9025 NC
$1.8500NC
$1.9100NC
$1.5450+1 1/4
Reprinted with permission from the Nov. 8, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
November 8, 2013 — CHEESE MARKET NEWS® 3
DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions.
For more information please visit www.devilletechnologies.com
NEWS/BUSINESS MARKET INDICATORS
KANSAS CITY, Mo. — USDA’s Kansas City Commodity Offi ce (KCCO) this week announced the award of contracts for the government of purchase of process cheese and Mozzarella in 2014. In addi-tion, KCCO this week issued a solicitation for 831,602 pounds of String cheese.
KCCO will purchase up to 53.7 mil-lion pounds of process cheese in various formats from Bongards’ Creameries and Land O’Lakes. The purchase price for each delivery period is the accepted differential price per pound indicated plus the applicable previous month’s average of the Chicago Mercantile Exchange cash market price for barrel cheese trading as reported by USDA’s Dairy Market News.
Up to 75 percent of the acquisition quantity for process cheese was awarded to small business under Small Business Administration (SBA) set-aside provi-sions.
• Bongards’ Creameries, up to 37.2 million pounds, with differentials rang-ing from $-0.0599 to $0.5200.
• Land O’Lakes, up to 16.5 million pounds, with differentials ranging from $-0.0810-$0.2399.
KCCO awarded contracts for the purchase of up to 82.4 million pounds of lite Mozzarella and low-moisture,
KCCO awards contracts, seeks String cheesepart-skim Mozzarella in various formats. The purchase price for each delivery period is the accepted differential price per pound plus the applicable previous week’s average of the Chicago Mercan-tile Exchange cash market for block cheese trade as reported by USDA’s Dairy Market News. Up to 35 percent of the acquisition quantity was awarded to small business under SBA set-aside provisions.
• Dairy Farmers of America, up to 17.9 million pounds, with differentials ranging from $0.0348-$0.1163.
• Leprino Foods, up to 33.4 million pounds, with differentials ranging from $-0.0717-$0.2045.
• Masters Gallery Foods, up to 2.8 million pounds, with differentials rang-ing from $0.2012-$0.2894.
• Miceli Dairy Products Co., up to 19.7 million pounds, with differentials ranging from $0.0324-$0.2368.
• Saputo Cheese USA Inc., up to 8.7 million pounds, with differentials rang-ing from $-0.0193-$0.2281.
Meanwhile offers to provide the government with String cheese under this week’s solicitation are due by 9 a.m. Nov. 18 in Kansas City. For more information, visit https://portal.wbscm.usda.gov/publicprocurement. CMN
International Dairy Markets November 8, 2013
Oceania Butter: 82 percent butterfat $3,500(-250)-$4,500. Cheddar Cheese: 39 percent maximum moisture $4,400(+100)-$4,700(+200).Skim Milk Powder: 1.25 percent butterfat $4,450(+100)-$4,850(+175).Whole Milk Powder: 26 percent butterfat $4,825(-125)-$5,100(-200).Source: Dairy Market News. Prices reported in U.S. dollars per metric ton, F.O.B. port. To convert to price per pound: divide price by 2,204.6 pounds.
Western Europe Butter: 82 percent butterfat $5,300(-125)-$5,750(-175).Butteroil: 99 percent butterfat $6,300-$6,950(-150).Skim Milk Powder: 1.25 percent butterfat $4,000(+100)-$4,500.Whole Milk Powder: 26 percent butterfat $4,850(-25)-$5,075(-125).Whey Powder: Nonhygroscopic $1,225(-25)-$1,1475(-25).
National Dairy Products Sales Report
Cheese 40-lb. Blocks:
**/Numbers not available due to government shutdown. 1/Prices weighted by volumes reported. 2/Sales as reported by participating manufacturers. Reported in pounds. More information is available by
calling AMS at 202-720-4392.
Average price1 Sales volume2
Cheese 500-lb. Barrels:Average price1
Adj. price to 38% moistureSales volume2
Moisture content Butter:
Average price1
Sales volume2 Nonfat Dry Milk:
Average price1 Sales volume2
Dry Whey:Average price1 Sales volume2
For the week ended: 10/19/13
$1.788910,861,148
$1.8509$1.7692
10,163,62335.14
$1.56773,537,562
$1.8432*15,790,269
$0.57136,998,738
*$1.7976*12,408,028
*$1.8820*$1.7999
9,700,01135.17
$1.52392,183,772
*$1.8455*15,482,888
$0.5604*8,834,536
10/26/13 10/12/13
$1.7890**
**$1.7697
****
$1.5425**
$1.8284**
$0.5802**
$1.824811,392,640
$1.9035$1.8203
9,523,77335.17
$1.49492,718,739
$1.861611,407,507
$0.57966,216,542
11/2/13
Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. *Total Contracts Traded/Open Interest reflect additional months not included in this chart.
Total Contracts Traded/Open Interest
Cash-Settled NDM*
NOV13DEC13JAN14FEB14MAR14APR14MAY14JUN14JUL14AUG14SEP14
NOV13DEC13JAN14FEB14MAR14APR14MAY14JUN14JUL14AUG14
Total Contracts Traded/Open Interest
187.25186.73179.00173.23171.00163.03163.50163.00159.50158.83159.00
57/2,440
154.00150.15149.50148.50150.30151.00151.75154.45155.00155.00
56/4,353
Fri., Nov. 1 Mon., Nov. 4 Tues., Nov. 5 Wed., Nov. 6 Thurs., Nov. 7
Total Contracts Traded/Open Interest
Fri., Nov. 1 Mon., Nov. 4 Tues., Nov. 5 Wed., Nov. 6 Thurs., Nov. 7NOV13DEC13JAN14FEB14MAR14APR14MAY14JUN14 JUL14AUG14SEP14OCT14NOV14DEC14JAN15
Class III Milk
18.7617.8617.1016.8816.8216.7216.7016.8717.1017.1317.2017.2217.1017.0016.27
1,833/21,718
Total Contracts Traded/Open Interest
Class IV Milk
NOV13DEC13JAN14FEB14MAR14APR14MAY14JUN14JUL14AUG14SEP14OCT14NOV14DEC14
20.4920.3219.5218.9518.8318.2518.3318.4017.9517.9418.0518.0418.0018.00
84/4,961
CME FUTURES for the week ended November 7, 2013
Fri., Nov. 1 Mon., Nov. 4 Tues., Nov. 5 Wed., Nov. 6 Thurs., Nov. 7
350370404342234175172166
423645
1,198832508442302297233216
9671
708745790709471328352312130103102
756967
Fri., Nov. 1 Mon., Nov. 4 Tues., Nov. 5 Wed., Nov. 6 Thurs., Nov. 7
Cash-Settled Butter*
4,4154,1012,1711,7941,6121,3281,3381,145
658665700565508452
1
18.8918.1317.2516.9716.8516.7516.7016.8717.1017.1017.1617.1617.0616.9416.26
20.4920.3119.5018.9518.8418.2518.3318.4018.1017.9418.0518.0418.0018.00
710741769685456328352312126102102
726767
187.25186.75179.00173.23171.20163.00163.50163.00159.50158.83159.00
350369392331227174169165
423745
154.00150.15150.00148.75150.03150.95151.50154.45155.00155.00
1,202832498434306292233216
9671
1,088/21,453
150/4,889
34/2,405
35/4,331
4,4583,9642,0541,6811,5111,2751,3121,120
642646673540485
441
18.8418.2717.3116.9016.7516.6816.6916.8517.0817.0817.1417.0817.0316.9616.26
1,039/20,806
20.4920.3119.6719.1518.9518.4018.4018.5218.1117.9418.1018.0418.0018.00
710741752655439327341311126102
97726767
100/4,807
187.50186.75180.00174.00172.00165.50165.00164.00161.48158.83159.00
350369382318223170170165
423745
47/2,375
153.50150.50150.00149.98150.05150.50152.00154.50152.60154.50
1,202825497432294284231216
9470
75/4,295
810/21,927
4,4014,0902,2161,8391,6391,3741,3921,189
713723738579543480
11
20.4920.3219.6219.0518.8718.3018.3318.4018.0017.9018.1018.0418.0018.00
297/5,197
708756822744528348384326133105111
827674
187.50187.50180.30175.00171.73163.53163.50163.00159.48158.83159.60
82/2,470
342371406354252176176166
423645
154.00150.23150.00148.50149.65151.00151.75154.45155.03155.50
91/4,403
1,198832515455318299235216
9673
4,4094,0822,1971,8351,6231,3511,3741,170
682685724571533471
11
4,4304,0522,1321,7481,5721,3061,3211,126
649655682553491441
1
18.8518.0817.2416.9716.8516.7516.7316.8917.1317.1517.1417.1517.0616.9416.26
1,279/21,159
20.4920.3119.6019.0018.9218.4018.4018.4918.1117.9418.1018.0418.0018.00
710741753662439327341311126102
97726767
9/4,815
187.50186.75179.80173.50171.88164.00164.50163.75161.00158.83159.00
350369388328223173172165
423745
32/2,396
154.00150.43149.80149.98150.05150.50151.98154.50154.50155.00
1,202829496434305284231217
9671
65/4,315
18.8217.9017.1616.9216.8516.7016.6816.8617.0917.1517.1417.1417.0716.9716.28
Reprinted with permission from the Nov. 8, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
4 CHEESE MARKET NEWS® — November 8, 2013
Tom Suber is president of the U.S. Dairy Export Council. He contributes this column exclusively for Cheese Market News®.
Perspective:Export Expertise
Another step closer to a one-stop shopIn 2007, after conducting an in-
depth study of international gouda trade, the U.S. Dairy Export Council (USDEC) launched its “Gouda Initia-tive.” The initiative, based on oppor-tunities outlined by the research, fo-cused on developing U.S. capabilities to supply bulk gouda to customers in Mexico, which at the time was buying more than 70 million pounds of gouda per year — virtually none from the United States.
The initiative came at a time when the U.S. dairy sector was fighting a reputation as a casual participant in global markets — unwilling or unable to provide many of the products in demand overseas. Through coopera-tive work between checkoff-funded USDEC, Mexican buyers and U.S. manufacturers, the Gouda Initiative cultivated partnerships that helped raise the U.S. share of Mexican gouda imports from about 1 percent in 2009 to nearly 30 percent in the first seven months of 2013. Gouda volume rose from less than 1 million pounds in
2009 to nearly 18 million pounds from January-July 2013.
It quickly made the United States a competitive supplier not only in Mexico, but also to other major gouda markets worldwide, including Japan. Most importantly, it provided a valuable lesson: When U.S. suppli-ers expand their export offerings and go after “new” product sectors, it not only provides commercially valuable growth, it enriches the United States’ reputation as a serious, commit-ted global dairy player and lays the groundwork for future expansion.
The challenge is identifying the gaps in the U.S. dairy export portfolio and taking the steps necessary to close those that are viable to address. Since gouda, U.S. suppliers have done a good job of branching out, moving to provide high-spec nonfat dry milk/skim milk powder (NDM/SMP), milk protein concentrate (MPC) and, most recently, whole milk powder (WMP). The latest research from USDEC points to the next opportunity in our
national portfolio: ultra high tempera-ture (UHT) milk.
UHT milk is milk heat-treated and packaged to provide a 9-12-month shelf life without refrigeration.
The UHT report focused spe-cifically on China, the world’s largest UHT milk buyer. Chinese demand for imported UHT milk is soaring. Consumption jumped from nearly 18 million pounds in 2010 to a forecast 331 million pounds this year. Demand scenarios suggest China’s appetite for imported UHT milk could grow four-fold to more than 1.3 billion pounds by 2020, spurred by economic growth and the resultant drive to consume more and better food.
China is drinking more UHT milk than it can produce on its own, and imported brands are flying off the shelves. Due in part to past food safety scares, Chinese consumers have shown they are willing to pay two-to-three times the price of local labels.
Urbanization and middle class expansion are creating an ever-larger consumer pool. Urbanization is particularly important because dairy consumption in rural areas is negligible, meaning there is huge room for growth as those rural dwell-ers move to cities. About 300 million more people — a mass nearly the size of the entire United States — will move to Chinese cities over the next 17 years, encouraged by government programs aimed at shifting China’s economic model to one based more on internal consumption rather than exports.
U.S. suppliers have a reputation for high-quality food and have established dairy trade routes with China over the past decade. Chinese buyers have con-sequently expressed interest in U.S. UHT milk to meet spiraling demand.
The decision U.S. suppliers will have to make is whether they want to play a role in meeting that demand. Like past experiences with gouda, NDM/SMP, MPC and WMP, capitalizing on the opportunity requires flexibility and commitment.
That means making product in package sizes (1-liter) preferred by Chinese consumers, adding nothing, not even vitamins, during processing.
Capacity expansion projects tar-geting Asian UHT milk demand have been proposed or are underway in Oceania. But even if all that capacity comes online, it will still be insuffi-cient to supply all of China’s needs, particularly in light of Oceania’s desire to supply other regions.
The potential payback is greater than simply the Chinese milk market. USDEC sees opportunity in other Asian markets, including the Philip-pines, and for additional products such as UHT cream and lactic acid beverages.
Expanding into global in-demand product categories lifts the entire dairy trade endeavor, while making the United States a better, more trusted, more desirable global sup-plier as global demand continues to grow faster than supply. CMN
Note: The U.S. Dairy Export Council is primarily supported by Dairy Management Inc. (DMI) through the producer checkoff that builds on collaborative industry partnerships with processors, trading companies and others to build global demand for U.S. dairy products.
The views expressed by CMN’s guest columnists are their own opin-ions and do not necessarily reflect those of Cheese Market News®.
E X P O R T T O O L K I T C M N E x c l u s i v e !
NEWS/BUSINESS
ROSEMONT, Ill. — National Football League (NFL) players Alfred Morris of the Washington Redskins, Corey Wootton of the Chicago Bears, and Steve Smith and Luke Kuechly of the Carolina Panthers have teamed up with Fuel Up to Play 60 to launch “Make Your Move” — a campaign to inspire students, teachers, parents and com-munity members to get active.
Make Your Move offers several ideas to help kids get 60 minutes of play a day, with a focus on dance-themed ac-tivities from dance-a-thons to in-class dance breaks. A “playbook” of tips and suggestions is available at www.FuelUpToPlay60.com. To kick off the campaign, the NFL players and Fuel Up to Play 60 student ambassadors battled it out on camera to see who has the ultimate “moves.” Andrew Luck of the Indianapolis Colts and spokesperson
NFL players join Fuel Up to Play 60 in new campaign to encourage students to get activefor the Quaker Oats Co., a subsidiary of PepsiCo Inc., also made a special appearance in the video.
Make Your Move runs through the end of this month. Student and teacher participants who register can earn points and win NFL prizes and grants for tracking their Make Your Move activi-ties. Parents and teachers can submit on behalf of a school a short video of their kids and students moving and getting active into the Quaker and Fuel Up to Play 60 Make Your Move Video Contest. Schools will have a chance to win one of fi ve $15,000 grants or one of ten $2,500 grants.
Through Nov. 27, video entries can be uploaded at http://QuakerOats.com/makeyourmove, which also includes offi cial contest rules, entry forms and more information. Andrew Luck will be serving as a guest judge and helping to
select the winning schools. Additionally, Make Your Move rallies were held Oct. 29 and Oct. 30 in schools around the country, hosted by the participating NFL players.
Fuel Up to Play 60 is an in-school nutrition and physical activity program launched by NFL and National Dairy Council (NDC), which is funded by America’s dairy farmers in collaboration with USDA. It is the nation’s largest in-school wellness program, reaching more than 73,000 schools.
“With research showing that im-proved nutrition paired with physical activity leads to improved academic achievement, America’s dairy farm-ers are committed to childhood health and wellness through pro-grams like Fuel Up to Play 60,” says Jean Ragalie, registered dietician and president of NDC. “We look for-ward to seeing how Fuel Up to Play 60 schools and students get active with Make Your Move and create lasting, healthy change.” CMN
WASHINGTON — FDA recently an-nounced it has introduced a new Twitter feed to aid in disseminating the agency’s updates on food, nutrition, food addi-tives, dietary supplements and the FDA Food Safety Modernization Act (FSMA).
FDA introduces Twitter feed to share updatesAnyone with an active Twitter ac-
count can follow the feed. To follow the feed, users can search “@FDAFood” using their Twitter accounts and then click “follow.” FDA’s privacy policy can be found at www.fda.gov/privacy. CMN
Reprinted with permission from the Nov. 8, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
NEWS/BUSINESSNovember 8, 2013 — CHEESE MARKET NEWS® 5
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Opportunities abroad
DUBAI, United Arab Emirates — U.S. dairy industry representatives visited Dubai, United Arab Emirates, this week to learn more about the growing opportunities for U.S. dairy in the Middle East and North Africa region. Participants toured Emirates Flight Catering and the Jebel Ali Free Zone, met with key Middle East dairy contacts and took part in the fi rst U.S. Dairy Business Conference on Wednesday, sponsored by the U.S. Dairy Export Council (USDEC). Pictured are, from left: Dairy Management Inc. (DMI) board members Ray Prock, Jr.; and Larry Shover; Corey Geiger, managing editor, Hoard’s Dairyman; DMI board members Jim Reid; and Glen Easter; Alyssa Sowerwine, senior editor, Cheese Market News; Mark O’Keefe, vice president, edito-rial services, USDEC; and USDEC Middle East Director Nina Bakht Halal. CMN
MONETT, Mo. — Dairy Farmers of America (DFA) ceased operations Oct. 31 at a dairy processing plant in Monett, Mo., where it leased space from Schreiber Foods.
The facility, which DFA oper-ated for many years, had been used to manufacture American cheese curd for Schreiber Foods as well as liquid whey.
DFA on March 6 announced its deci-sion to cease operations at the facility, where it employed 86 people. The deci-sion was based on the plant’s fi nancial losses due to a defi cit milk market and its inability to run at full volume. (See “DFA to shutter dairy plant in Monett, Mo.,” in the March 8, 2013, issue of Cheese Market News.)
“The majority of our 86 employees have secured future plans through new jobs, retirement or other personal
DFA ceases operations at Monett, Mo., plantendeavors,” says Kristi Dale, director of media relations, DFA. “We are grateful to our industry partners and business lead-ers in the community who have assisted us in hosting job fairs and employee meetings for our dedicated workers.”
Dale adds that DFA members whose milk was supplying the plant will con-tinue to have a market for their milk at alternate processing facilities.
Schreiber Foods says it has no cur-rent plans for what it will do with the part of the building formerly occupied by DFA.
“They were a longtime partner and we hated to see them go, but for us it’s business as usual,” says Andrew Tobisch, director of communications, Schreiber Foods, adding that Schreiber has found a new source for the product DFA previously supplied. CMN
LOUISVILLE, Ohio — Biery Cheese Co. has acquired Kickapoo Valley Cheese (KVC), Milladore, Wis., effec-tive Nov. 1 and will operate it under the Biery Cheese Co. brand.
“We are excited about being able to bring on the KVC facility into the Biery Cheese family. Both organiza-tions share in the belief of service and innovation of packaging, coupled with generations of experience,” says Ben Biery, CEO, Biery Cheese Co. “Continu-ing with our tradition of growth, this addition will help us strategically posi-tion our company to service our existing customers along with developing new customers.”
Biery Cheese Co. was started in 1929 by Norman F. Biery, who started out making Swiss cheese in Louisville, Ohio. The company has evolved from a manufacturing
Biery Cheese acquires Kickapoo Valley Cheese, will operate under Biery brand
company to a packaging, processing and distributing company providing chunks, shreds, slices, diced, cubes and snacking cheeses to its customers.
“It is with confi dence and a clear conscious that I transfer the ownership of Kickapoo Valley Cheese to Biery Cheese Co. Biery Cheese meets every criteria I have for a buyer,” says Jim Leytus, former owner, Kickapoo Val-ley Cheese.“They are a fi ne company with an impressive growth curve, an excellent reputation and a desire to participate in the Wisconsin dairy industry. It was of paramount impor-tance to me to fi nd a willing, qualifi ed buyer that would carry on the work and tradition of Kickapoo Valley and, where possible, retain the current employees, take care of our loyal customers, and give priority consideration to our sup-pliers and service providers.” CMN
CONCORD, Mass. — The Massachu-setts Cheese Guild was launched on Oct. 29 with a gala at Verrill Farm located here.
Based in Westport Point, Mass., the guild has 50 founding members and has applied for not-for-profi t status.
The guild will work to educate its members, consumers, retailers and distributors; encourage and support the production of farmstead and artisanal cheeses and cultured dairy products made from Massachusetts milk; help ar-tisan cheesemakers promote products and accomplishments; and make the public aware of the varieties of cheese available throughout the state.
Guild president is Barbara Hanley, who is a partner at Shy Brothers Farm in Westport.
Guild charter artisan members are Appleton Farms in Ipswich; Berkshire
New Massachusetts Cheese Guild aims to help promote artisan, farmstead cheeses
Blue in Dalton; Chase Hill Farm in Warwick; Cricket Creek Farm in Wil-liamstown; Crystal Brook Farm in Sterling; Fiore di Nonno in Somerville; Foxboro Cheese Co. in Foxboro; Great Hill Dairy in Marion; Grey Barn and Farm in Chilmark; Hillman Farm in Colrain; Mermaid Farm in Chilmark; Mozzarella House in Peabody; Rawson Brook Farm in Montere; Robinson Farm in Hardwick; Ruggles Hill Creamery in Hardwick; Shy Brothers Farm in West-port; Sidehill Farm in Hawley; Smith’s Country Cheese in Winchendon; Valley View Farm in Topsfi eld; and Westfi eld Farm in Hubbardston.
Guild charter sponsors are The Cheese Shop of Concord, Shubie’s Mar-ket and Seacrest Foods International.
F o r m o r e i n f o r m a -tion, visit the guild’s website at www.macheesegui ld .org . CMN
Reprinted with permission from the Nov. 8, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
6 CHEESE MARKET NEWS® — November 8, 2013
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NEWS/BUSINESS
Photo by Jane Burns
By Rena Archwamety
MADISON, Wis. — The fi fth annual Wisconsin Cheese Originals Festival, held here last weekend, drew a record attendance of about 1,000 people who dined and mingled with cheesemakers, toured creameries and farms, and at-tended tasting seminars that featured cheeses from Wisconsin and around the world.
One of the Saturday afternoon seminars, “European Traditionals vs. Wisconsin Originals,” highlighted four traditional-style village dairy cheeses from Germany and Switzerland, fi ve relatively new cheese creations from Wisconsin artisans, and the stories of the cheesemakers behind these new and traditional cheeses.• European Traditionals
The four European cheeses were se-lected and presented by Jonathan Rich-ardson of the New York-based importer Columbia Cheese and included: Gruyere 1655 by cheesemaker Jean-Marie Du-nand at Fromagerie Le Cret (affi nage at Fromage Guryere SA), Switzerland; Ur-Bergkase by cheesemaker Evelyn Wild at Kaeskuche Isny, Germany; Nufenen by cheesemaker Christian Schumacher at Sennerei Nufenen Coop-erative, Switzerland; and Challerhocker by cheesemaker Walter Rass at Kaserei Tufertschwil, Switzerland.
Richardson explained in his presen-tation that due in part to international demand and the rise of cheesemaking associations in the 20th century, most cheese production in Austria and Switzerland is Gruyere, Emmentaler, Appenzeller and a few other major AOC cheeses.
For these AOC or controlled designa-tion of origin cheeses, the cheesemak-
Tasting seminar looks at the histories behind cheeses of Wisconsin, Germany, Switzerland
ing practices as well as milk prices are heavily structured and regulated to produce a consistent product and market for the product, Richardson says. Advantages of this system are that milk producers and cheesemakers who follow the quotas and mandates make a good, steady living practicing their craft. The system, set up to promote these cheese brands, also is able to fulfi ll consumers’ expectations of quality and hygiene.
Downsides, however, include brand promotion at the expense of a chance for the best producers to excel and gain recognition for their product, as producers are treated as contract manufacturers for cheeses that meet a set standard.
“When they are all encouraged to hit the middle, it creates anonymity,” Richardson says. “There is less oppor-tunity for an individual dairy to control their business.”
Despite a dominance of AOC cheeses, recently some cheesemakers in this region have resurrected lesser-known traditional village cheese varieties or created unique cheeses based on tradi-tional ones. For example, Rass’ Challer-hocker, which Richardson describes as a “reboot” or “creative deviation” of Ap-penzeller, is made from unskimmed milk and house-made starter cultures and features a creamier density and brighter fl avor than the traditional cheese. Rich-ardson notes that by 2015, Tufertschwil Dairy will produce more Challerhocker than Appenzeller for the fi rst time in its nearly 120-year history, giving Rass and his farmers a scalable opportunity to control their fi nancial destiny.• Wisconsin Originals
Jeanne Carpenter, executive direc-tor of Wisconsin Cheese Originals and organizer of the festival, called Wiscon-
sin the “specialty cheese capital of the United States” with almost 50 percent of the nation’s specialty cheese production coming from the state.
“Wisconsin really is a story of the power of cheese,” Carpenter told semi-nar attendees. “It also is about bringing together three components: the farmer, the processor and marketer, and the community.”
Moving away from a system that favored either the farmers or the chee-
semakers, she says the focus on artisan cheeses has allowed artisans and milk producers to work together on unique cheeses that can retail for a premium and support both parts of the industry.
Carpenter presented fi ve Wisconsin cheeses: Gran Canaria by cheesemaker Sid Cook of Carr Valley Cheese; Pasto-rale by cheesemaker Mike Matucheski of Sartori Co.; Red Rock by cheesemaker Chris Roelli or Roelli Cheese; Water Buffalo Taleggio by cheesemaker Anna Landmark of Landmark Creamery; and EWE CALF to be KIDding by cheese-maker Tony Hook of Hook’s Cheese.
She highlighted cheesemakers, such as Roelli and Cook, who came from traditions of commodity Cheddar production and switched or diversifi ed into more specialty varieties, launching their family legacies of cheesemaking into a new and profi table direction for the future.
Among the more experienced chee-semakers, Carpenter also included new cheesemaker Anna Landmark, winner of the 2012 Wisconsin Cheese Originals Beginning Cheesemaker Scholarship. The seminar attendees sampled her soft, washed-rind Water Buffalo Taleggio that she is expecting to release in limited supply around December.
While stressing that the tasting was not a direct comparison or battle of Wisconsin vs. European cheeses but rather an appreciation for two different traditions, Carpenter couldn’t resist some lighthearted boasting.
“Wisconsin cheeses fi nally have come into their own,” she says. “I think we can fi nally rival European cheeses.” CMN
ORIGINAL, TRADITIONAL — A variety of original cheeses from Wisconsin, as well as traditional and newer cheeses from Switzerland and Germany, were served during the “European Traditionals vs. Wisconsin Originals” seminar Nov. 2 at the Wisconsin Cheese Originals Festival.
Reprinted with permission from the Nov. 8, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
November 8, 2013 — CHEESE MARKET NEWS® 7
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NEWS/BUSINESS
FDA says it will ban artifi cial trans fats SILVER SPRING, Md. — FDA yester-day announced a preliminary determi-nation that partially hydrogenated oils (PHOs), the primary dietary source of artifi cal trans fat in processed foods, are not “generally recognized as safe” for use in food. FDA says its preliminary determination is based on available scientifi c evidence and the fi ndings of expert scientifi c panels.
The agency has opened a 60-day comment period on this preliminary determination to collect additional data and gain input on the time poten-tially needed for food manufacturers to reformulate products that currently contain artifi cial trans fat should this determination be fi nalized. Comments can be submitted at www.regulations.gov under docket No. FDA-2013-N-1317.
“While consumption of potentially harmful artifi cial trans fat has declined over the last two decades in the United States, current intake remains a signifi -cant public health concern,” says FDA Commissioner Margaret A. Hamburg. “Further reduction in the amount of trans fat in the American diet could prevent an additional 20,000 heart attacks and 7,000 deaths from heart disease each year — a critical step in the protection of Americans’ health.”
In recent years, many food manu-facturers and retailers have voluntarily decreased trans fat levels in many foods and products they sell. Trans fat can be found in some processed foods, such as certain desserts, microwave popcorn products, frozen pizzas, margarines and coffee creamers. Cheese and dairy products have some naturally-occurring trans fats, which are not considered a health risk and the proposed FDA ban does not include.
The Grocery Manufacturers As-sociation (GMA) issued a statement yesterday noting that since 2005, food manufacturers have voluntarily lowered the amounts of trans fats in their food products by more than 73 percent.
“Product safety is the No. 1 priority for America’s food and beverage compa-nies and we invest our reputations and resources to provide consumers with safe and nutritious products that meet their preferences and lifestyle needs,” GMA says in the statement. “Consum-ers can be confi dent that their food is safe and we look forward to working with the FDA to better understand their concerns and how our industry can better serve consumers.” CMN
AKRON, N.Y. — In honor of its 95th year in business, Perry’s Ice Cream is celebrating with the release of a limited-edition anniversary fl avor.
Sponge Candy features caramelized sugar swirls and sponge candy pieces. Similar to the chicken wing, sponge candy has a cult-like following among
Perry’s Ice Cream celebrates 95th anniversary with limited edition Sponge Candy fl avorthose living in western New York state.
“This summer we introduced Sponge Candy at our ice cream stands and the consumer response has been tremen-dous,” said Bob Denning, president and CEO, Perry’s Ice Cream. “When we began discussing a 95th fl avor, Sponge Candy was the top choice to honor both four generations of ice cream craftsmanship and our community that has supported us for almost a century.”
Perry’s Ice Cream’s humble begin-nings date back to 1918, a time when H. Morton Perry, a broom maker by trade, seized his American dream by purchasing a horse-drawn milk route in the village of Akron. On his fi rst day of business,
Morton delivered 29 gallons of farm fresh milk to the homes of his new customers.
During the Great Depression, Mor-ton was asked by the cafeteria manager at Akron Central School to supply ice cream to the children as a treat. Morton responded with his usual eagerness and entrepreneurial spirit. The fi rst batch of Perry’s Ice Cream was cooked on the kitchen stove using his mother’s family recipe. Morton, with the help of his 17 year-old son Marlo, would freeze the mix in a hand-churned ice and salt freezer. Marlo would deliver it when he went to school the next day.
“You never know until after it hap-pens, that moment that will create your
legacy,” says Brian Perry, executive vice president, vice chair and fourth genera-tion Perry Ice Cream leader. “For my great-grandfather that moment there at the kitchen stove would come to defi ne who we are, even in today’s fast-paced business world. He is known for saying “make sure we put enough of the ‘good’ stuff” in our products. Ninety-fi ve years later, that is still our company and my family’s promise for everything we do.”
Today, Perry’s is one of the larg-est ice cream producers in New York state. With more than 330 associates, the company makes approximately 500 different items totaling more than 12 million gallons per year. CMN
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8 CHEESE MARKET NEWS® — November 8, 2013
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NEWS/BUSINESS
WASHINGTON — As the U.S. House prepares to return to Washington Tues-day, lawmakers appealed this week to top negotiators to include milk price reform in the fi nal farm bill.
Monday, Sens. Kirsten Gillibrand, D-N.Y., a member of the Senate Agriculture Committee, and Susan Collins, R-Maine, sent a letter urging leaders of the Senate Agriculture Committee to include their bipartisan measure in the fi nal farm bill to help stabilize milk prices.
The bipartisan Gillibrand-Collins proposal, known as the Dairy Pricing Reform Act, would require USDA to begin a pre-hearing process to restruc-
Lawmakers prepare for farm bill talks to resume, urge reform measures for milk pricesture the dairy pricing system and direct the Secretary of Agriculture to release the department’s recommendations to Congress. This builds on language Sen. Gillibrand secured in the Senate farm bill that requires USDA to study different methods of determining prices, includ-ing competitive pay pricing or shifting from a 4-class system to a 2-class system.
“It is our hope that insight gained by this process will lead to new solutions that stabilize the price of milk and pro-vide certainty for our dairy producers, so that they can grow their business and help strengthen our national rural economies,” the Nov. 4 letter says.
The top four farm bill negotiators: Senate Agriculture Committee Chair-woman Debbie Stabenow and Ranking Member Thad Chochran, and House Agriculture Committee Chairman
Frank D. Lucas and Ranking Member Collin C. Peterson, were expected to meet informally this week to resolve key points between the House and Sen-ate versions of the farm bill. CMN
Butter, WMP prices down in latest GDT AUCKLAND, New Zealand — The GlobalDairyTrade (GDT) price index was down 1.8 percent, led by drops in butter and whole milk powder Tuesday follow-ing the latest auction on GDT, Fonterra’s internet-based sales platform. Prices of other commodities rose in this latest trade event.
The average prices for each commod-ity and their percent change at the Nov. 5 auction are as follows:
• Milk protein concentrate: US$7,738 per metric ton FAS ($3.5099 per pound), up 4.6 percent.
• Buttermilk powder: US$4,524 per metric ton FAS ($2.0521 per pound), up 1.8 percent.
• Butter: US$3,529 per metric ton FAS ($1.6007 per pound), down 7.0 percent.
• Anhydrous milkfat: US$5,343 per metric ton FAS ($2.4236 per pound), up 6.9 percent.
• Cheddar: US$4,380 per metric ton FAS ($1.9868 per pound), up 1.2 percent.
• Skim milk powder: US$4,559 per metric ton FAS ($2.0679 per pound), up 0.5 percent.
• Whole milk powder: US$4,891 per metric ton FAS ($2.2185 per pound), down 3.7 percent.
• Rennet Casein: US$9,926 per met-ric ton FAS ($4.5024 per pound), up 0.5 percent.
• Lactose: US$1,622 per metric ton FAS ($0.7357 per pound), up 3.2 percent (relative to two trading events prior to the current event because no quantity was offered or sold in the preceding event).
The next trading event will be held Nov. 19. For more information, visit www.globaldairytrade.info. CMN
NASHVILLE, Tenn. — The Tennessee Department of Health (TDH) this week said at least eight cases of illnesses among children in East Tennessee likely are related to drinking raw milk. The investigation has identifi ed a specifi c strain of E. coli O157 as the cause of at least three of the illnesses.
Illnesses in Tennessee linked to raw milkThe Knox County Health Depart-
ment and the East Tennessee Regional Offi ce of TDH issued an alert following their investigation last week of a cluster of E. coli illnesses associated with raw milk consumption. All cases are known to have obtained raw milk from a local cow-share dairy.
“Out of an abundance of caution at this time, we advise people not to consume raw milk or dairy products from McBee Dairy Farm in Mascot, Tenn., due to possible contamination with E. coli O157,” the alert says. “We also recommend consumers dispose of any raw milk or dairy products they may currently have from McBee Dairy Farm.”
It is legal in Tennessee for in-dividuals to consume raw milk from their animals, including those under shared ownership. CMN
Reprinted with permission from the Nov. 8, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
November 8, 2013 — CHEESE MARKET NEWS® 9
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took thousands of confi dential fi les before moving to work at Custom Fabri-cating & Repair Inc. (CFR), Marshfi eld, Wis. The jury also determined that CFR knowingly used the fi les to compete against Relco.
According to the judgment, CFR is responsible for approximately 90 percent of the total due to Relco. The two companies are seeking a resolu-tion of the legal proceedings that will minimize disruption to others in the industry, including customers, say Relco’s attorneys.
“It is very gratifying to see justice done in this case,” says Dean LeDoux, a principal at Minneapolis-based law fi rm Gray Plant Mooty, who led the Relco trial team. “Relco has become an industry leader through 30 years of innovation and integrity. The legal system worked as it should in protect-ing Relco’s rights to its confi dential and valuable technology.”
Calls to CFR requesting a com-ment on the verdict were not re-turned by press time. CMN
RELCOContinued from page 1
KANTVIK, Finland — DuPont Nutri-tion & Health says new clinical evi-dence on the impact of DuPont Danisco HOWARU Protect line of probiotics shows it helps maintain respiratory health for healthy adults.
DuPont Danisco HOWARU Protect line is designed for a range of ingre-dients that help provide enhanced bioprotection, an improved nutritional profi le as well as better taste and tex-ture with greater cost effi ciency and lower environmental impact for manu-facturers of dairy products and dietary supplements.
Investigated in a joint clinical study by Australian research institutes, two probiotic formulations reduced the risk of delayed the onset of respiratory ill-ness. It also improved the training load during physical exercise, according to a clinical study.
The study titled, “Probiotic Supple-mentation for Respiratory and Gastro-intestinal Illness Symptoms in Healthy Physically Active Individuals,” was just published in Clinical Nutrition journal.
Scientists from Griffi th University conducted the randomized, double-blind, placebo-controlled clinical trial in cooperation with the Australian In-stitute of Sport and other collaborating institutions. The 465 trial subjects were split into three groups, each receiving a daily dose of HOWARU Protect Adult, HOWARU Protect Sport or a placebo. All subjects were healthy adults who exercised for at least 30 minutes, three
Clinical study shows HOWARU Protect probiotics reduce risk of respiratory symptomstimes per week.
Daily supplementation with HOW-ARU Protect Adult produced the most notable result. In the healthy men and women who consumed a daily dose over the fi ve-month study period, the risk of upper respiratory tract illness was reduced by 27 percent, according to the study.
The results also indicate test sub-jects remained free of upper respiratory symptoms for several weeks longer, on average, than those in the placebo group.
“A signifi cant delay in the onset of symptoms indicates that this pro-
biotic strain may help active adults stay healthy longer,” says Allan Cripps, pro-vice chancellor of health,Griffi th University and the principal scientist of the study.
A tendency toward reduced respi-ratory illness episodes and signifi cant delay in the onset of symptoms also was observed among subjects who received the probiotic formulation HOWARU Protect Sport. The most notable fi nding in this group, however, was a signifi cantly higher level of physical activity, possibly due to the delayed time of symptoms.
“It is a known fact that physical
activity is reduced or may even stop when people are feeling the effects of respiratory symptoms,” says Da-vid Pyne, senior physiologist at the Australian Institute of Sport and lead investigator of the study. “So, these fi ndings are important, particularly for those who engage in competitive sports and need to maintain fi tness.”
Through the work of the global net-work of food scientists and technolo-gists in DuPont, the Danisco range is supported by a spectrum of know-how across applications and processing.
For more information on DuPont Danisco visit www.danisco.com. CMN
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10 CHEESE MARKET NEWS® — November 8, 2013
NEWS/BUSINESS
million pounds in September, down 0.3 percent from a year earlier. Production of Cheddar, the largest component of American-type production, was down 1.2 percent from a year earlier to 240.6 million pounds.
Wisconsin led the nation’s cheese production with 229.8 million pounds produced in September, up 0.7 per-cent from its production a year earlier. California followed with 186.9 million pounds, a 9.8-percent increase from a year earlier.
The next four cheese-producing states in September were Idaho with 73.0 million pounds, down 1.7 percent from its production a year earlier; New York with 65.5 million pounds, up 5.9 percent; New Mexico with 56.8 million pounds, down 6.6 percent; and Min-nesota with 50.6 million pounds, up 5.4 percent.
NASS reports total U.S. butter production in September was 133.7 million pounds, down 1.9 percent from September 2012’s 136.3 million pounds but up 1.7 percent on an average daily basis from August 2013’s 135.9 million pounds.
U.S. production of nonfat dry milk suitable for human consump-tion totaled 76.4 million pounds in September, down 9.6 percent from September 2012 and down 26.2 percent from August 2013 when ad-justed to an average daily basis. CMN
SEPTEMBERContinued from page 1
And the fact of the matter is, no one really wants to say they sell a dairy commodity.
“Commodity markets can be spec-tacularly unsexy from a P&L perspec-tive,” Plourd says. “So we spend a lot of time saying, ‘Well, I know it’s skim milk powder, but it’s really better than skim milk powder.’ Or ‘my cheese is this, but it’s really better than that.’ We spend a lot of time talking about how we are occupying a quasi-commodity space, but we’re really reaching for differentiation. This obviously com-plicates standardized trade and the development of broadly relevant marketplaces.”
Also at play is whether trade is truly global or whether it’s more regional. Certainly there is global dairy trade occurring, but when one examines prominent trade relationships, the United States has signifi cant dairy trade with Mexico, the New Zealand has major exports to China, and a great deal of European Union product goes to Russia, Plourd notes.
There’s also the question of where China will play into world trade in the future.
“China was largely self-suffi cient in dairy until 2008, until the melamine
crisis,” Plourd says.The 2008 melamine scandal dealt a
serious blow to consumer confi dence and rippled back to the producer level in China, Plourd notes, and post-scandal powder imports took off as domestic supplies were left in tatters.
“I think it’s fair to wonder, if China was self-suffi cient once, will it be self-suffi cient again?” he says.
Five years post-melamine scandal, China isn’t close to self suffi ciency but that could change.
“I think it’s potentially dangerous to take for granted that China is going to be what it is today, forever,” he says.
And yet in many ways, Plourd says, it seems as though current global markets are turning on two key fac-tors: what New Zealand can make and what China can take. In terms of what New Zealand can make, the fact that New Zealand has a pasture-based dairy system means it can be subject to wide fl uctuations in milk production depending on weather.
In the United States, Plourd be-lieves the rewards of the export market are worth the risk, but if there were a hiccup in the world marketplace, it would compromise U.S. prices. Comparing the world dairy market to a basketball team, he suggests that while the United States is an important player, he doesn’t believe the nation is a starter.
“Exports are great, until they’re not,” he says.
So, does the U.S. dairy industry really want convergence?
“It’s very easy from an academic or economist perspective to stand up on high and say we should have transpar-ency and convergence,” Plourd says. “I think it’s even easy for industry people to say, ‘sign me up,’ and then when you go back home and look at your own P&L say, ‘then again, this is good for me … why would we want to change it?’
“There is a lot of money to be made in the shadows,” Plourd says, noting that when there are price spreads, there is money to be made in those gaps.
Looking at the corn market, which has single-point price discovery, Plourd notes that it is highly standardized and effi cient and has a large, concentrated, vertically-integrated merchant class.
“The question we have to ask our-selves as an industry is, ‘Are these goals we aspire to?’” Plourd says. “Because when you think about it … we have multiple price points, lots of small and medium merchants.”
Convergence, by its nature, means that prices would go up in some regions and down in others. It also likely means some industry players would consolidate. CMN
PLOURDContinued from page 1
Roehl Transport purchases Brock Cold Storage and Trucking operationsMARSHFIELD, Wis. — Roehl Trans-port has purchased Brock Cold Storage and Trucking effective Oct. 16. Roehl will operate the cold storage business as Roehl Cold Storage, and the trucking operation will become a part of Roehl Transport.
“We recognized the tremendous business and outstanding customer relationships built by the Brock family. We’re excited to enter the cold stor-age market and continue providing high levels of customer service to the customers that have been working with Brock,” says Rick Roehl, CEO, Roehl Transport.
The cold storage warehouses are in Vesper and Owen, Wis. The Owen loca-tion has 120,000 square feet of storage, and the Vesper warehouse is 38,000 square feet.
“We see new opportunities and synergies between the warehouse operations, our brokerage and our logistics services,” says Steve Elliott, vice president, Roehl Logistics.
Roehl has offered employment to for-mer Brock employees, and Brian Brock will stay on in a managerial role. CMN
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November 8, 2013 — CHEESE MARKET NEWS® 11
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MADISON Wis. — The Wisconsin As-sociation of Food Protection (WAFP)recently honored Les Lamb, who has worked in the dairy industry for 35 years, with its meritorious achievement award.
Lamb began his dairy career as a dairy policy analyst with the Wisconsin Department of Agriculture in 1978. He joined the Wisconsin Milk Market-ing Board (WMMB) in 1984 and held various positions over 17 years with the organization.
In 2001, Lamb became deputy sec-retary of the Wisconsin Department of Agriculture, Trade and Consumer Protection. Then, in 2003, Lamb started his own consulting business assisting companies with intellectual property matters, food regulation and product traceability systems and software.
Lamb has served on WAFP’s board of directors for the last fi ve years. He is currently secretary and treasurer. CMN
Lamb receives Wis. Association of Food Protection award
Comings and goings … comings and goings
William Norman has been named president of rigid plastics packaging for foodservice, dairy, food and beverage, and industrial markets at Berry Plastics Group Inc., Evansville, Ind. In his new role, Norman will work to accelerate growth of the company’s rigid open top business while researching, designing and introducing innovative new prod-ucts. Norman joined Berry Plastics in 1993 and has held managerial and vice president positions.
Marc Benoit has been named execu-tive vice president of human resources at Danone, Paris. Benoit previously served as general manager at DIAM Group Europe and at Blédina. Benoit
succeeds Muriel Pénicaud.Brian McKeon has been named vice
president and chief fi nancial offi cer of IDEXX Laboratories Inc., Westbrook, Maine. McKeon previously served as executive vice president and chief fi nan-cial offi cer at Iron Mountain Co. and the Timberland Co. as well as vice president of fi nance at PepsiCo North America.
Daniel Smith has been named agri-cultural development administrator at the Wisconsin Department of Agricul-ture, Trade and Consumer Protection (WDATCP). Smith previously served as CEO of Midwestern BioAg and as an eco-nomic advisor at WDATCP. He also ran a dairy farm for more than 30 years. CMN
PEOPLE
PITTSBURGH — Harry Davis & Co. has announced it will hold an auction of the former Unilever margarine facility in Atlanta Nov. 19-20, and the former Kraft Foods/Churny Cheese packaging plant in Waupaca, Wis., Dec. 3. Both sales will take place on-site at the plants as well as via simultaneous online bidding at www.harrydavis.com.
The former Unilever plant in Atlanta is 140,000 square feet and features 84,000 square feet of produc-tion space, 42,000 square feet of cold storage space and a 14,000-square-foot office. The sale will include general plant equipment, including processing and packaging equipment, in addition to the facility on 11 acres of real estate.
“This auction is a must for anyone
Former Unilever, Kraft plants to be auctionedin need of premium equipment at a signifi cant cost savings,” says Leonard Davis, president, Harry Davis & Co.
The Kraft/Churny plant auction in December will feature cheese pack-aging and general plant equipment along with the 57,000-square-foot plant on 3.56 acres. The plant includes a warehouse, cold storage facilities and offi ce space.
“The Churny Cheese plant has been very well-maintained,” Davis says. “It would make an excellent investment for a company in need of space for food-grade production or packaging.”
Information about both auctions, in-cluding equipment photos, auction cata-log, registration and inspection infor-mation, is available at www.harrydavis.com or by calling 412-765-1170. CMN
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12 CHEESE MARKET NEWS® — November 8, 2013
NEWS/BUSINESS
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Getting results is as easy as picking up the phone or emailing me to discuss your needs. I am here to listen and help you achieve your goal. Please call me at (608) 831-6002 or email me at [email protected] and let me go to work for you today.
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November 8, 2013 — CHEESE MARKET NEWS® 13
For more information please visit www.harrydavis.com
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14 CHEESE MARKET NEWS® — November 8, 2013
For more information please visit www.harrydavis.com
NEWS/BUSINESS
AUCTION: Unilever Margarine Facility
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innovation, Domino’s.“Over the last couple years, we’ve
expanded from product development and promotion to diversifying the way we partner together and diversify sales growth,” he adds.
Jordan notes that DMI brought on checkoff-funded chefs who have been concepting Domino’s ideas for innova-tion and fi nding ways to make them cheese-centric.
This has included Domino’s launch in late 2012 of Handmade Pan Pizza, which uses up to 40 percent more cheese than the chain’s two-topping, hand-tossed pizzas. The ideas expressed
by the checkoff-funded chefs played a role in this decision.
“They’ve really helped us, from im-proving what’s on our menu to bringing new items on,” Jordan says.
Jordan notes that DMI also has brought health and wellness consumer trends to Domino’s attention.
“We’ve been working on what type of product development messaging we
can bring related to health and well-ness,” he says.
One area in that realm that has seen growth and success is Domino’s Smart Slice school lunch program. Launched in 2009, the program now is in more than 450 school districts in 39 states.
Smart Slice is a line of nutritious pizzas created specifi cally for schools and delivered hot and fresh from local Domino’s Pizza stores. The pizzas fea-ture crust made with 51 percent white whole-wheat fl our, sauce with 35 per-cent less sodium than traditional pizza sauce, reduced sodium Lite Mozzarella cheese and customizable, nutritious toppings.
“We’ve had a 45-percent increase in participating schools over the last year alone,” Jordan says.
Barry Friedman, director of sales and marketing for the Smart Slice National School Lunch Program, says that a recent survey of school foodser-vice directors showed that the level of participation in school lunch goes up by two-thirds when Domino’s is being served in schools.
“It’s been a great relationship with DMI and the dairy farmers,” he says. “We’ve been able to work with DMI’s cu-linary team of chefs (funded by farmers through the checkoff) to develop fl avor profi les that appeal to kids.”
Jordan notes that DMI chefs in recent months have been working on new, innovative varieties of Smart Slice pizzas to launch in the next school year. He notes that two varieties include Hawaiian Hot Lava and Pacifi c Coast Veggie, which are both available at retail but are now being adapted into a school lunch version that meets school nutritional requirements.
“We’re constantly working with DMI on innovation in the Smart Slice program to keep up on the trends in the student environment and looking at other types of cheeses we can use,” says Friedman, noting that Domino’s is cur-rently looking at doing more with Feta, largely for the high school population as older children tend to have a more developed palate.
“From a Smart Slice perspective, we’re also looking at what else we can do beyond the cafeteria lunch,” he says. “We’re looking at the possibility of athletic events or school pizza parties.”• A mutual benefi t
While Domino’s has seen sales growth, product innovation and in-creased knowledge of the dairy con-sumer base through DMI, the dairy industry also has benefi ted from work-ing with Domino’s.
“This partnership has been dramati-cally successful to increasing sales of pizza cheese and the amount of cheese on pizzas,” Gallagher says.
He notes that when it comes to con-sumer connections and the use of social media, Domino’s is an industry leader.
“We’ve learned so much from Domino’s, some of their best practices with social media, issues management
PIZZAContinued from page 1
Turn to DOMINO’S, page 15 a
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November 8, 2013 — CHEESE MARKET NEWS® 15
DOMINO’SContinued from page 14
NEWS/BUSINESS
and connecting with consumers at that level,” Gallagher says.
At the same time, DMI has been able to provide Domino’s with valu-able information about consumers as it relates to dairy, he adds.
In the past year, Domino’s and DMI also have honed the focus a bit on the lo-cal dairy producer/Domino’s franchisee relationship with its Delivering Dairy Goodness Initiative.
Launched this past summer to coin-cide with June Dairy Month, Delivering Dairy Goodness featured a series of na-tionwide community events throughout the summer to showcase how farmers create dairy goodness through their commitment to working hard and pro-ducing quality dairy products. Events included farm tours and free pizza.
The program was launched to help build consumer trust in dairy and help consumers make the connection between pizza and cheese and where dairy comes from, Doyle says.
Jordan notes events like Delivering Dairy Goodness show the breadth and depth of the DMI/Domino’s partnership as it has evolved over the past fi ve years.
“The partnership has helped spur innovation with the involvement of cu-linary experts and DMI upstream,” he says. “The money we put in is justifi ed by the investment we’re getting in new, innovative products and sales growth.
“I think both organizations are see-ing increased value in this partnership as it moves forward,” he adds.
Meanwhile, a recent USDA analysis of DMI’s partnership with Domino’s Pizza from 2009-2011 showed a benefi t-to-cost ratio (BCR) of $7.70 for every checkoff dollar invested. This com-pares to a BCR of 3.9 for the entire checkoff before such partnerships began. The conclusions came from
a new evaluation model designed by Texas A&M University that refl ects the broad range of checkoff activities that work to grow demand for dairy, DMI notes.
“This report verifi es the check-off’s business strategy of working with and through partners instead of traditional generic advertising and promotion,”Rovey says. “Working with partners such as Domino’s and others clearly extends our resources and our return.”
Gallagher notes the new evaluation model by Texas A&M nearly doubled the effect of the DMI/Domino’s partnership that was originally estimated by USDA.
“And that’s just one partnership that DMI has,” he adds.• The ripple effect
In addition to growing cheese consumption and sales for the dairy in-dustry and growing sales for Domino’s, the partnership has helped to spur increased cheese utilization and qual-ity improvements across the pizza cat-egory at large, DMI and Domino’s say.
In the Smart Slice realm, Jordan notes that the improved quality of piz-zas in that program has led to changes in quality in both frozen and fresh pizza for school lunch.
“We’re not only driving our own sales, but driving the whole pizza and cheese category, and consumption of dairy on pizza is growing faster than general pizza consumption,” Doyle
WASHINGTON — Milk production in the 23 major milk-producing states during September totaled 14.81 billion pounds, up 1.1 percent from September 2012, according to preliminary data released this week by USDA’s National Agricultural Statistics Service (NASS). (All fi gures are rounded. Please see CMN’s Milk Production chart on this page.)
For the entire United States, Sep-tember production is estimated at 15.84 billion pounds, up 1.0 percent from September 2012. There were an estimated 9.21 million milk cows on U.S. farms in September 2013, up 12,000 from September 2012 but down 25,000 head from August 2013.
August production in the 23 major states, at 15.70 billion pounds, was up 2.5 percent from August 2012.
For the 23 major states, produc-tion per cow averaged 1,741 pounds in September, up 12 pounds from a year earlier. There were 8.51 million cows on farms in the 23 major states in September, down 19,000 head from August but up 33,000 head from Sep-tember 2012.
California led the nation’s milk production in September with 3.20 billion pounds, up 0.4 percent from September 2012. There were 1.78 million milk cows on California in September, 1,000 more head than in August and 2,000 more head than in September 2012. Production per cow averaged 1,795 pounds in September 2013, up 5 pounds from a year earlier.
Wisconsin had the second-highest milk production in September at 2.22 billion pounds, up 1.0 percent from a year earlier. There were 1.27 million cows on Wisconsin farms in September,
Milk production in September up 1 percentunchanged from August and up 1,000 head from September 2012. Produc-tion per cow in Wisconsin averaged 1,745 pounds in September, up 15 pounds from a year earlier. CMN Turn to DMI, page 16 a
“We have enjoyed a strong fi ve-year partnership with Domino’s that includes new opportunities through our ‘dairy goodness’ efforts,” says Paul Rovey, Arizona dairy producer and DMI chair. “It is important that we connect consumers across the country with our farms and showcase the important work we do to help produce terrifi c things — like great-tasting Domino’s pizzas.”
The public was invited to Delivering Dairy Goodness events both on and off the farm throughout the summer.
“The Delivering Dairy Goodness events were a terrifi c way for our lo-cal business owners, along with dairy farm family businesses, to connect with their communities around the country,” Doyle says.
Doyle notes that over the years, the two organizations have really begun to fl esh out an alignment of core values across both groups.
“Both Domino’s franchisees and dairy farmers are invested in their lo-cal communities,” he says, “so it made sense to bring them together with this program.”
“We have enjoyed astrong fi ve-yearpartnership with
Domino’s that includesnew opportunitiesthrough our ‘dairy
goodness’ efforts.”
Paul RoveyDAIRY MANAGEMENT INC.
Reprinted with permission from the Nov. 8, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
16 CHEESE MARKET NEWS® — November 8, 2013
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(those born between the early 1980s and mid-1990s) and consumer pref-erences on cheese blends. 3-Cheese Stuffed Crust Pizza features a com-bination of Cheddar, Mozzarella and Provolone.
“The new 3-Cheese Stuffed Crust Pizza is another example of how the checkoff works with companies to fi nd innovative ways to use their products,” Rovey says.
DMI also has partnered with com-panies including McDonald’s, Taco Bell and the Quaker Oats Co. to bring more dairy to their product offerings. With those partnerships, further innovation by competitors to align with new prod-uct offerings has occurred, DMI says.
Gallagher notes that through work
with Pizza Hut and Papa John’s as well as Domino’s, 60 million pounds of cheese is now being sourced from the United States for pizza in other countries.
Gallagher also notes how the Domino’s partnership has helped to shape DMI’s work with other partners.
“They’ve taught us a lot about what to look for in a partner, and I think foremost is a strategic intersection of knowledge and shared values,” he says.• Looking ahead
As the DMI and Domino’s partner-ship moves forward, Gallagher notes it’s important to keep spurring innova-tion and increased pizza and cheese consumption and sales.
“We want to make sure there’s no
sliding back to complacency and mar-keting dollars moving away from what benefi ts dairy,” he says.
Gallagher adds that DMI currently is working with Domino’s on evolvement of its stores and menu.
“I think things need to be modern-ized, and I think the sit-down oppor-tunities of a more vibrant restaurant provide more opportunities for dairy consumption, such as with fl uid milk,” he says.
Jordan says DMI’s involvement in the new store format, called “Pizza Theatre,” has been welcomed.
“They’re helping to plant the seeds to help us grow as a business over the long haul rather than short-term spikes in sales,” he says.
Moving forward, both Jordan and Doyle say there is room for culinary innovation in menu development, as well as wide opportunity for growing involvement in schools.
“We’re feeling really good about the relationship and where it is right now,” Jordan says. “We’re both really seeing the value of it, and I think it’s on the right track.”
Doyle adds that as the two organi-zations continue to better understand each other, there will be new ways the groups can benefi t one another.
“We’ve both seen very quantifi able benefi ts from the partnership that I think will continue going forward as we keep coming up with ways to inno-vate and help each other,” he says. “I think there will be some great things we haven’t even discovered yet.” CMN
DMIContinued from page 15
says. “We’ve also seen some of our peers following us in some of the promotions that have been offered.”
Gallagher agrees.“The success of launches like Dom-
ino’s American Legends line has led to other companies diverging dollars to putting more cheese on pizzas,” he says.
Just last month, Pizza Hut launched a new 3-Cheese Stuffed Crust Pizza, the fi rst permanent new pizza product added to the chain’s menu in nearly two decades.
DMI provided Pizza Hut consumer trend analysis related to “millennials”
