January 15, 2016 - Cheese Reporter
Transcription
January 15, 2016 - Cheese Reporter
Serving the Since 1876 ry Weekly ust 's Dairy I nd orld W CHEESE REPORTER Vol. 140, No. 30 • Friday, January 15, 2016 • Madison, Wisconsin US Dairy Industry Still Analyzing Impacts Of TPP: USDEC, NMPF TPP Doesn’t Provide Degree Of Market Access US Had Been Seeking, But Avoids Disproportionate Opening Of US Dairy Market Washington—The US Dairy Export Council (USDEC), working with the National Milk Producers Federation (NMPF) and other dairy industry organizations, “is still completing its overall analysis” of the recently concluded Trans-Pacific Partnership (TPP) agreement, according to Tom Suber, USDEC’s president. Suber testified Thursday before the US International Trade Commission (USITC) representing the US dairy industry. The USITC last fall launched an investigation to assess the TPP’s impact, and held a public hearing in connection with its investigation this week. At the hearing, Suber, following detailed written comments submitted jointly to the USITC last month by USDEC and NMPF, outlined issues and concerns of the US dairy industry. “The deal falls short in providing the degree of market access we Ireland’s Ornua Acquires Its First Manufacturing Location In China: Shanghai Based Ambrosia Dairy Dublin, Ireland—Ornua (formerly the Irish Dairy Board) this week announced that it has acquired the Shanghai-based dairy manufacturer Ambrosia Dairy, which supplies dairy products including specialty cheeses, sour cream and yogurt to high-end retail and foodservice markets in the Shanghai region. The acquisition provides Ornua with its first manufacturing base in China. The acquisition will significantly increase Ornua’s access to the high end retail market and will provide an entry point into supplying dairy ingredients to the rapidly growing Chinese foodservice industry, Ornua said. The addition of domestically • See Ornua In China, p. 5 had been seeking, but it also avoids a disproportionate opening of the US market to dairy exporters,” Suber said. The TPP dairy provisions “are arguably the most complex” the US has negotiated in a free trade agreement (FTA) to date and trade impacts for the dairy industry “require analysis of not simply one-directional trade with one or two trading partners but rather a multi-faceted analysis of how trade is likely to shift across the region in light of the agreement’s complicated new provisions, both with respect to imports and exports,” USDEC and NMPF noted in their written comments. Analysis on the dairy market access elements of the TPP remains underway, the organizations noted. The dairy tariff lines number several hundred across numerous countries of interest in the TPP region. In their comments to the USITC, USDEC and NMPF highlighted a number of factors that are relevant to their assessment of TPP’s impact on the US dairy industry and that they urge the USITC to take into account in addition to the assessment of the impact that new export access will have for the US dairy sector: Impacts on US sales in existing FTA partner markets: A relevant factor to consider is the degree of erosion of preferential FTA-created access for US dairy exports into Mexico and Peru due to TPP’s expansion of access to those markets for two major competitors to the US dairy industry, namely New Zealand and Australia. Although the US dominates Mexican dairy imports, new dairy product market access concessions that Mexico has made to most of its other TPP partners will cause Mexican dairy imports of New Zealand and Australian origin to become more competitive with US-sourced product in the Mexican internal market. Degree of dairy exports to the US expected from Canada: During the TPP negotiations, NMPF and USDEC advocated for a significant expansion in bilateral trade with Canada, indicating their preference for fully open access. • See TPP Dairy Impacts, p. 7 USDA Lowers 2016 Milk Production Forecast, Also Reduces Most Product Price Forecasts Large Stocks, Weaker Early 2016 Prices Underlie Cut In Cheese Price Forecast; Strong Demand Leads To Higher Butter Price Forecast Washington—The US Department of Agriculture (USDA), in its monthly supply-demand estimates released Tuesday, reduced its 2016 milk production forecast and lowered most of its dairy product and milk price forecasts. Milk production for 2015 is raised on slightly stronger growth in milk per cow. USDA now expects 2015 milk production totaled a record high 208.4 billion pounds, up 100 million pounds from December’s forecast and up 2.4 billion pounds from 2014’s record output. Forecast 2016 milk production is reduced by 600 million pounds from last month, to 211.8 billion pounds. Cow numbers are reduced due to lower expected milk prices and the recent blizzard in Texas and New Mexico, which killed an estimated 30,000 or more dairy cows. Growth in milk per cow is reduced due to lower milk prices. The dairy export forecast is lowered on both a fat- and skimsolids basis as global supplies of dairy products remain large and demand remains relatively weak. Continued strength in domestic butter use will also limit the competitiveness of US butter in world markets, USDA said. Fat and skim solids-basis dairy imports for 2015 are unchanged. For 2016, both fat and skim-solids imports are raised largely on higher cheese imports. • See Most Prices Cut, p. 3 Licensed Cheese Imports Fell 25.1% In December; 2015 Licensed Imports Up 12.3% Over 2014; High-Tier Cheese Imports Also Up Washington—Licensed US cheese imports during December totaled 21.8 million pounds, down 25.1 percent, or 7.3 million pounds, from December of 2014, according to figures recently released by USDA’s Foreign Agricultural Service. For all of 2015, licensed cheese imports totaled 224.3 million pounds, up 12.3 percent, or 24.5 million pounds, from 2014 and the highest level since 2007, when they totaled 245 million pounds. Licensed cheese imports had reached a record high of 275.9 million pounds in 2002, and reached a 21st century low of 162.4 million pounds in 2011. The tariff-rate quota (TRQ) for cheese is 298.3 million pounds. Last year, that TRQ was 75.2 percent filled, compared with a TRQ fill rate of 67 percent in 2014. Licensed imports of other cheese-nspf (not specifically provided for) during December totaled 8.2 million pounds, down 7.2 million pounds from December of 2014. Licensed imports of other cheese-nspf during all of 2015 totaled 96.5 million pounds, up 7.8 million pounds from 2014. December licensed imports of Swiss and Emmenthaler cheese totaled 5.1 million pounds, down 321,539 pounds from December of 2014. During all of 2015, licensed imports of Swiss and Emmenthaler totaled 54 million pounds, up 3.9 million pounds from 2014. • See Licensed Imports Up, p. 4 Licensed ImportUS Butter Imports 16 2005- 2015; millions of pounds 15 14 13 12 11 10 9 8 7 6 05 06 07 08 09 10 11 12 13 14 15 Page 2 January 15, 2016 CHEESE REPORTER Past Issues Read this week’s issue or past issues of Cheese Reporter on your mobile phone or tablet by scanning this QR code. Cheese Reporter Publishing Co. Inc. © 2015 2810 Crossroads Drive, Suite 3000 Madison, WI 53718-7972 (608) 246-8430 • Fax (608) 246-8431 http://www.cheesereporter.com DICK GROVES Publisher/Editor e-mail: dgroves@cheesereporter.com 608-316-3791 MOIRA CROWLEY Specialty Cheese Editor e-mail: mcrowley@cheesereporter.com 608-316-3793 KEVIN THOME Advertising & Marketing Director e-mail: kthome@cheesereporter.com 608-316-3792 BETTY MERKES Classifieds/Circulation Manager e-mail: info@cheesereporter.com 608-316-3790 REGULAR CONTRIBUTORS: Bob Cropp, Neville McNaughton, Kelton Greenway, Dan Strongin, John Umhoefer You can e-mail our contributors at: contributors@cheesereporter.com The Cheese Reporter is the official publication of the following associations: California Cheese & Butter Association Lisa Waters, 1011 Pebble Beach Dr, Clayton, CA 94517 Central Wisconsin Cheesemakers’ and Buttermakers’ Association Jim Mildbrand, PO Box 160 Greenwood, WI 54437 Cheese Importers Association of America 204 E St. NE, Washington, DC 20002 Eastern Wisconsin Cheesemakers’ and Buttermakers’ Association Barb Henning, Henning’s Cheese 21812 Ucker Road, Kiel, WI 53042 International Dairy-Deli-Bakery Association P.O. Box 5528, Madison, WI 53705 Missouri Butter & Cheese Institute Terry S. Long, 19107 Factory Creek Road, Jamestown, MO 65046 Nebraska Cheese Association Ed Price, Fremont, NE 68025 New York State Cheese Manufacturer’s Assn Kathyrn Boor, 11 Stocking Hall, Cornell University, Ithaca, NY 14853 North Central Cheese Industries Assn Lloyd Metzger, SDSU, Box 2104, Brookings, SD 57007 North Dakota Cheese Makers’ Assn Chuck Knetter, Medina, ND 58467 Ohio Swiss Cheese Association Darlene Miller, P.O. Box 445, Sugar Creek, OH 44681 South Dakota State Dairy Association Howard Bonnemann, SDSU, Box 2104, Brookings, SD 57007 Southwestern Wisconsin Cheese Makers’ Association Myron Olson, Chalet Cheese Coop, N4858 Cty Hwy N, Monroe, WI 53566 Wisconsin Association for Food Protection Bob Wills PO Box 620705, Middleton WI 53562 Wisconsin Cheese Makers’ Association John Umhoefer, 8030 Excelsior Drive, Suite 305, Madison, WI 53717 Wisconsin Dairy Products Association Brad Legreid, 8383 Greenway Blvd., Middleton, WI 53562 EDITORIAL COMMENT DICK GROVES Publisher / Editor Cheese Reporter e: dgroves@cheesereporter.com tw: @cheesereporter apparently just reducing the fat content of cheese by a certain percentage isn’t adequate; the cheese has to be low in fat or fat-free. No wonder dairy intake is inadequate; the federal government continues to recommend low-flavor or flavor-free versions of normally flavor-filled dairy products! ‘Dietary Guidelines’ Remains Decidedly Anti-Cheese The US government last week released the 2015-2020 Dietary Guidelines for Americans, and the good news for the dairy industry is that this latest edition of the guidelines is pretty positive when it comes to dairy consumption. Indeed, the new guidelines offer three main points regarding dairy products: first, that average intakes of dairy for most age-sex groups “are far below recommendations of the Healthy US-Style Pattern”; second, that the dairy group contributes many nutrients, including calcium, protein, phosphorus, riboflavin, vitamin B12, potassium, zinc, and magnesium; and third, that most individuals in the US “would benefit” by increasing dairy intake. In short, there’s plenty of room to boost consumption of nutritious dairy products in the US just by getting consumers to raise their dairy intake to adequate levels. The bad news for the dairy industry is that the latest edition of the Dietary Guidelines, like the previous seven editions, remains anti-cheese. More bluntly, it’s hard to find any positive mention of good old, regular, full-fat, delicious cheese. For example, in the aforementioned point about how most individuals would benefit from increasing dairy intake, the Dietary Guidelines actually recommends boosting dairy intake “in fat-free or lowfat forms.” Interestingly, soy beverages (“soymilk”) are lumped into the dairy group “because they are similar to milk based on nutrient composition and in their use in meals.” It actually appears that the federal government would prefer that consumers drink soy beverages to meet their dairy intake requirements rather than eat full-fat cheese. Astonishingly, the new Dietary Guidelines doesn’t even have anything positive to say about reduced-fat cheese (or reduced-fat milk, for that matter); instead, one “realistic option” to reduce intake of saturated fats is to change ingre- dients in mixed dishes to increase the amounts of lowfat and fat-free cheese, vegetables, whole grains and lean meat in place of some of the “fatty meat and/or regular cheese in the dish.” Additional strategies to lower saturated fat intake include choosing lower-fat forms of foods and beverages that contain solid fats (for example, fat-free or lowfat milk instead of 2 percent or whole milk; and lowfat cheese instead of regular cheese). So apparently just reducing the fat content of cheese by a certain percentage (for example, USDA’s Commercial Item Description for reduced fat Cheddar cheese stipulates that the product contain between 25 and 33.3 percent less fat than regular Cheddar) isn’t adequate; the cheese has to be low in fat or fat-free. And reduced-fat (2 percent) milk isn’t adequate, either; it has to be either lowfat (1 percent) or fat-free (skim) milk. No wonder dairy intake is inadequate; the federal government continues to recommend low-flavor or flavor-free versions of normally flavor-filled dairy products! The document then goes on to say that, because “most cheese contains more sodium and saturated fats, and less potassium, vitamin A, and vitamin D than milk or yogurt, increased intake of dairy products would be most beneficial if more fat-free or low-fat milk and yogurt were selected rather than cheese.” This is rather puzzling advice in light of some of the recent research about saturated fats in general and milkfat in particular. Indeed, the press release announcing the release of the new Dietary Guidelines used the phrase “sciencebased” at least a couple of times, but it seems like at least some of the science on which this new advice is based is old, rather than new or recent. The press release also mentions that this edition of the Dietary Guidelines “recognizes the importance of focusing not on individual nutrients or foods in isolation, but on the variety of what people eat and drink...” but certainly seems to single out regular cheese as a food that should be avoided, for alleged ills including saturated fat and sodium. Speaking of sodium, and old science, the new edition of the Dietary Guidelines calls for limiting sodium to less than 2,300 milligrams per day for adults, but there is some recent research suggesting that such a level of sodium intake is too low. For example, a study published in the American Journal of Hypertension in 2014 concluded that a range of sodium intake of 2,645 to 4,945 milligrams per day is associated with the “most favorable health outcomes.” While the latest edition of the Dietary Guidelines remains decidedly anti-cheese, it’s noteworthy that the document isn’t necessarily aimed at consumers; rather, it is “developed for use by policymakers and nutrition and health professionals.” So the impact on consumer perspectives of cheese and other dairy products will likely be minimal. The bad news here is that the information in the Dietary Guidelines is used in developing federal food, nutrition, and health policies and programs. It is also the basis for federal nutrition education materials designed for the public and for the nutrition education components of USDA and Department of Health and Human Services food programs. So we can expect the federal government’s anti-cheese crusade to continue for another five years, in everything from how the updated Nutrition Facts label looks to what products are provided to schools participating in the National School Lunch Program. Maybe by the time the ninth edition of the Dietary Guidelines for Americans is released, the evidence supporting higher consumption of saturated fats will be irrefutable. Or maybe by 2020 Congress will have repealed the 1990 law that mandates the guidelines. DG CHEESE REPORTER (Publication Number: ISSN 0009-2142). Published weekly by Cheese Reporter Publishing Co. Inc., 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-7972; Phone: (608) 246-8430; Fax: (608) 246-8431. Subscriptions: $140.00 per year in USA; Canada and Mexico: $195.00 per year; other foreign subscribers, please write for rates. Advertising and Editorial material are copyrighted material. Any use without publisher’s consent is prohibited. Cheese Reporter does not endorse the products of any advertiser or any editorial material. POSTMASTER: If undeliverable, Form 35579 requested. Periodicals postage paid at Madison, WI. Address all correspondence to: Cheese Reporter, 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-7972 January 15, 2016 Most Prices Cut USDA’s Pesticide Data Program Finds No Residues (Continued from p. 1) In Dairy-Based Infant Dairy product prices for 2015 are adjusted for December data. For Formula Samples Washington—Over 99 percent of the food products sampled through the 2014 Pesticide Data Program (PDP) had residues below the Environmental Protection Agency (EPA) tolerances, according to the 2014 PDP Annual Summary, which was posted this week by USDA’s Agricultural Marketing Service (AMS). Pesticide residues exceeding the tolerance were detected in 0.36 percent of the samples tested. Each year, USDA and EPA work together to identify foods to be tested on a rotating basis. In 2014, surveys were conducted on a variety of foods, including infant formula, fresh and processed fruits and vegetables, oats, rice, and salmon. In 2014, PDP tested two types of infant formula: dairy-based and soy-based. PDP collected and tested 528 dairy-based samples and 527 soy-based samples. For the 528 dairy-based infant formula samples, 29 were concentrated liquid, 390 were powdered, and 109 were ready-to-eat. The New York and California laboratories tested dairy-based and soy-based infant formula samples, respectively. There were no residue detections in the 528 dairybased formula samples. MGK-264, a pesticide formulation ingredient used to enhance the active ingredient, was detected in seven (1.3 percent) of the 527 soy-based samples. All detections of MGK-264 were much lower than the established tolerance. AMS initiated the Pesticide Data Program in 1991 to collect data on pesticide residues in food. PDP data are used primarily by the EPA to assess dietary exposure during the review of the safety of existing pesticide tolerances (Maximum Residue Limits). PDP data also are used by the US Food and Drug Administration (FDA) to assist in planning commodity surveys for pesticide residues from an enforcement/regulatory perspective. Because PDP data are mainly used for risk assessments, PDP laboratory methods are geared to detect the lowest possible levels of pesticide residues, even when those levels are well below the tolerances established by the EPA. In 2014, over 41 percent of the samples tested had no detectable pesticide residues, and over 99 percent of the samples tested had residues below the tolerances established by the EPA. The findings of the Pesticide Data Program Annual Summary for calendar year 2014 can be downloaded at www.ams.usda.gov/ pdp. Page 3 CHEESE REPORTER 2016, the butter price forecast is raised from last month on relatively strong demand and lower expected production. USDA now expects butter prices to average $1.8900 to $2.0000 per pound this year, up one cent on both ends from last month’s forecast. Butter prices averaged $2.0670 per pound in 2015 after averaging a record $2.1361 per pound in 2014. Cheese, dry whey and nonfat dry milk price forecasts are all reduced from last month. Relatively large beginning cheese stocks and weaker beginning-year prices underlie the reduction in the cheese price forecast. USDA now expects cheese prices to average $1.5450 to $1.6250 per pound this year, down from last year’s average of $1.6454 per pound and also down from 2014’s record-high average of $2.1551 per pound. Both dry whey and nonfat dry milk prices are expected to be pressured this year by weakness in exports. USDA now expects 2016 dry whey prices to average 24.0 to 27.0 cents per pound, after averaging 38.04 cents per pound in 2015 and 65.38 cents per pound in 2014. Nonfat dry milk prices are now projected to average 86.5 to 92.5 cents per pound in 2016, after averaging 90.16 cents per pound in 2015 and $1.7682 per pound in 2014. USDA’s Class III price for 2016 is reduced on lower cheese and dry whey prices. USDA now expects the Class III price to average $14.05 to $14.85 per hundredweight this year, after averaging $15.80 per hundred last year and a record-high $22.34 per hundred in 2014. The last time the federal order Class III price averaged under $15.00 per hundredweight was in 2010, when it averaged $14.41 per hundred. USDA’s Class IV price forecast is also reduced, as the lower nonfat dry milk price more than offsets a higher butter price. The Class IV price is now projected to average $13.35 to $14.25 per hundred, down from last year’s average of $14.35 per hundred and also down from 2014’s record-high average of $22.09 per hundred. USDA’s all milk price forecast is lowered to $15.35 to $16.15 per hundred for 2016, after averaging $17.08 per hundred last year and a record-high $23.97 per hundred in 2014. In other USDA price forecasts, the projected range for the 2015/16 season-average corn farm price is lowered five cents on each end to $3.30 to $3.90 per bushel, reflecting weakness in export demand and recent declines in cash and futures prices. For more information, circle #5 on the Reader Response Card on p. 10 Page 4 CHEESE REPORTER Licensed Imports Up (Continued from p. 1) Licensed Cheddar imports during December totaled 2.3 million pounds, down 74,769 pounds from December of 2014. Licensed Cheddar imports during all of 2015 totaled 22.8 million pounds, up 6.4 million pounds from 2014. December licensed imports of American-type cheeses including Colby totaled 1.5 million pounds, pounds from December of 2014. Licensed Blue Mold imports during all of 2015 totaled 6.2 million pounds, up 129,457 pounds. December licensed imports of Gruyere-processed totaled 609,550 pounds, down 294,985 pounds from December of 2014. For all of 2015, licensed imports of Gruyere-processed totaled 6.7 million pounds, up 505,285 pounds from 2014. Licensed imports of other cheese-nspf-lowfat during December totaled 28,105 pounds, up from Licensed US Cheese Imports 2000 – 2015 millions of pounds 290 270 250 230 210 190 170 150 2000 02 04 06 up from zero pounds in December of 2014. For all of 2015, licensed imports of these cheeses totaled 3.7 million pounds, up from just 20,940 pounds in 2014. Licensed Italian-type cheese imports during December totaled 1.7 million pounds, down 653,598 pounds from December of 2014. Licensed Italian-type cheese imports during all of 2015 totaled 19.8 million pounds, up 1.5 million pounds from 2014. December licensed Edam and Gouda imports totaled 1.7 million pounds, down 99,108 pounds from December of 2014. For all of 2015, licensed Edam and Gouda imports totaled 14.5 million pounds, up 710,081 pounds from 2014. Licensed Blue Mold cheese imports during December totaled 663,300 pounds, down 120,281 08 10 12 14 zero pounds in December of 2014. Licensed imports of these cheeses during all of 2015 totaled 41,294 pounds, down 29,348 pounds. High-Tier Imports Increase December imports of high-tier cheese totaled 5.1 million pounds, up 2.3 million pounds from December of 2014. For 2015, imports of high-tier cheese totaled 41.9 million pounds, up 12.2 million pounds from 2014. Combined licensed and hightier cheese imports in 2015 totaled 266.2 million pounds, up 36.8 million pounds from 2014. Imports of high-tier cheese in several key categories last year, with comparisons to 2014, were Italian-type cheese, 19.9 million pounds, up 6.7 million pounds; other cheese-nspf, 11.3 million pounds, up 3.2 million; Cheddar, 7.8 million pounds, up 3 million; Blue Mold cheese, 2.1 million pounds, down 269,170 pounds. Imports of high-tier butter during December totaled 788,432 pounds, down 762,357 pounds from December of 2014. For all of 2015, imports of high-tier butter totaled 21.6 million pounds, up 13.9 million pounds from 2014. Butter TRQ 98.3% Filled December licensed butter imports totaled 611,607 pounds, down 539,660 pounds from 2014. For all of 2015, licensed butter imports totaled 15.1 million pounds, up 209,935 pounds. Combined licensed and hightier butter imports in 2015 totaled 36.7 million pounds, up 14.1 million pounds from 2014. The current tariff-rate quota for butter is 15.3 million pounds. Last year, the butter TRQ was 98.3 percent filled, compared with a fill rate of 96.9 percent in 2014. December licensed imports of butter substitutes totaled 1.6 million pounds, down 4.3 million from December of 2014. For all of 2015, licensed imports of butter substitutes totaled 13 million pounds, up 58,588 pounds from 2014. The current TRQ for butter substitutes is 13.4 million pounds. Last year, that TRQ was 97.3 percent filled, compared with a fill rate of 96.9 percent in 2014. Licensed imports of dried whole milk in December totaled 440,174 pounds, down 242,308 pounds from December of 2014. Licensed dried whole milk imports for all of 2015 totaled 7.2 million pounds, up 1.8 million pounds from 2014. The current TRQ for dried whole milk is 7.3 million pounds. In 2015, that TRQ was 98.9 percent filled, compared with a fill rate of 74.7 percent in 2014. January 15, 2016 from our archives 50 YEARS AGO Jan. 14, 1966: Chicago—President Johnson’s new commission on food and fiber is scheduled to meet here this month to open the study of long-range national farm policy. The 30-member group is headed by Dean Sherwood Berg of the University of Minnesota College of Agriculture. Des Moines, IA—Improper storage of pesticides led to the unexplained contamination of milk from 13 dairy herds last fall. It is believed that aldrin was stored near a dairy food component and used instead of normal component. There is zero tolerance for insecticide residues in milk. 25 YEARS AGO Jan. 11, 1991: Washington— The USDA this week announced that since the beginning of the year, five cents per hundredweight is being deducted from farmers’ milk checks on all milk produced within the 50 states, the District of Columbia, Puerto Rico and the US territories, and marketed for commercial use in the calendar year 1991, as part of the 1990 budget agreement. Madison—New findings on one of today’s toughest cheesemaking challenges – making lowfat cheeses without sacrificing flavor, body or shelf life – will be among the topics covered at the CDR Research and Technology Conference here next month. CDR senior scientist Mark Johnson will discuss new findings in off-flavor development in lowfat cheeses. 10 YEARS AGO Jan. 13, 2006: Washington— A petition proposing a number of changes to the federal standards of identity for ice cream and other frozen desserts has drawn criticism from a number of dairy producer organization and individual consumers. Areas of disagreement include the use of filtered milk in frozen desserts, use of any safe and suitable milk-derived ingredients in frozen desserts, and the use of “alternate make” procedures. Central Point, OR—To keep pace with increased demand for its award-winning specialty cheeses, the Rogue Creamery here recently purchased a 22,000 square-foot industrial cold storage facility for $1.1 million, providing more freezer, refrigerator, packing and wrapping space. January 15, 2016 Ornua In China (Continued from p. 1) produced premium cheeses to the Ornua product range will complement the existing range of Kerrygold Irish milk products already on sale in China. These products occupy similar shelf space in retail outlets and the newly expanded product range will help Ornua leverage sales opportunities for Irish dairy produce in premium Chinese markets, Ornua said. The Ambrosia facility will also include a new product development center that will focus on developing cheese products that meet specific tastes of Chinese consumers, Ornua added. “This acquisition is another important milestone in Ornua’s growth as a global supplier of quality products. We are buying an excellent dairy enterprise which allows us to significantly grow our Chinese business in one step,” commented Kevin Lane, Ornua’s CEO. “It provides us with a manufacturing base in China and brings on board a team with local knowledge and expertise, complementing our own existing in-market operation,” Lane added. “Ambrosia Dairy is particularly well known for the quality of its cheeses and it has been at the forefront of the development of the domestic cheese market in Shanghai.” The Ambrosia acquisition is the latest in a series of investments by Ornua, targeting new routes to market for Irish dairy products. The last 18 months has seen Ornua invest in acquisitions and significant capital expenditure in the US, Africa, Germany, Ireland, Saudi Arabia, Spain and the United Kingdom. The acquisition comes just weeks after the opening of a powdered milk packaging factory in Nigeria. It also meets another objective of building Ornua’s capacity to develop premium dairy products for markets in milk-deficit regions. Also this week, Ornua announced that, following the recent sale of DPI Specialty Foods, its US specialty foods distribution business, to Arbor Investments, it will pay an additional cash bonus of 15 million euros to its member suppliers, Ireland’s dairy processors. This additional cash bonus will be paid in April and May and will be in addition to the normal annual cash bonus paid by Ornua. In addition to returning additional funds to its member suppliers, the sale of DPI will enable Ornua to continue to develop its core business of building routes to market for Irish dairy products. As a cooperative, owned by Ireland’s dairy processors, and in turn by Ireland’s dairy farmers, Ornua’s core aim is to deliver a sustainable, high return for Irish dairy farmers. Page 5 CHEESE REPORTER Canadian Dairy Co-ops Gay Lea Foods, Amalgamated Dairies Launch Cooperative Dairy Alliance Mississauga, Ontario—Amalgamated Dairies Limited (ADL) and Gay Lea Foods Cooperative Limited this week announced the launch of the Cooperative Dairy Alliance (CDA) to strengthen cooperation between the two Canadian dairy cooperatives. The CDA seeks to strengthen dairy cooperative leadership in the Canadian dairy industry by growing the market for Canadian milk and building on the current variety of value-added dairy products offered by the two cooperatives, who will work collectively by sharing process excellence and collaborating on market distribution, delegate and leadership train- ing, research and development and procurement. The Cooperative Dairy Alliance will promote the unique assets and specialties of the two dairy co-ops that serve the Canadian market with local dairy products: ADL has dairy processing and retail food distribution facilities throughout Prince Edward Island, processing over 100 million liters of milk each year from the 180 PEI dairy farms. ADL’s products include a range of cheeses including Cheddar, Mozzarella, Brick and others, as well as butter, fluid milk, ice cream and evaporated and sweetened condensed milk. ADL’s products are sold across Canada and the co-op also provides products to markets in the US, Asia and the Caribbean. Gay Lea Foods is owned and operated by 1,200 dairy farmers who produce 35 percent of Ontario’s milk, and more than 3,800 members. The co-op’s products include Cheddar, Mozzarella and other cheeses, as well as fluid milk, butter, sour cream, cottage cheese and whipped cream. “The nature of this will allow each respective cooperative to maintain their independence while at the same time leveraging the strengths, assets, and resources of the combined business to work towards a collective goal to grow and sustain a strong, dynamic and innovative dairy industry for the benefit of their members,” said Garnet Schellen, ADL’s president. The Alliance “is another way we can strengthen both the Canadian dairy industry and the cooperative movement,” said Paul Vickers, chair of the board for Gay Lea Foods. ENTRY DEADLINE: FEBRUARY 5, 2016 w orl d cha m pion chees e . org ENTER THE CONTEST For more than 50 years, the world’s foremost experts have selected the finest cheeses in dozens of categories. This unflinching technical evaluation now extends to butters and yogurt. Follow the global competition cheesemakers dream of winning. @CheeseContest Page 6 CHEESE REPORTER January 15, 2016 George Cornell, Hans Epprecht To Receive WCMA Cheese Industry Champion Awards Madison—Two longtime cheese industry visionaries, George Cornell and Hans Epprecht, will be honored on April 14 with the Cheese Industry Champion Award by the Wisconsin Cheese Makers Association (WCMA). The award honors persons who have devoted their careers to growing the US dairy industry. Cornell, with Pacific Cheese Company, and Epprecht, founder of Great Lakes Cheese, will accept the Cheese Industry Champion Award at the Industry Achievement Awards Breakfast on Thursday, April 14, 2016, at the International Cheese Technology Expo in Milwaukee, WI. George Cornell is the vice president of industry relations at Pacific Cheese, a California-based broadline cheese supplier. He is a member of the company’s executive committee and is a futures trader for Class III milk and Cheddar cheese. Cornell’s more than 50 years of previous dairy industry experience includes a 25-year history with Schreiber Foods as senior vice president of purchasing, a vice presidency of cheese operations at Land O’Lakes and work as executive vice president of Empire Cheese at H.P. Hood LLC. He is an active participant in the International Dairy Foods Association and in the National Cheese Institute, where he is a former chairman. He also participates in the Wisconsin Dairy Products Association, New York State Cheese Manufacturers’ Association and the WCMA. Cornell graduated from Michigan State University with a dairy manufacturing degree in 1955, and joined the United States Air Force before he began his career in dairy, serving in the Strategic Air Command, Squadron Adjutant and Security Office. Hans Epprecht was born in Switzerland in 1930 and immigrated to Brewster, OH, in 1948 in pursuit of the “American Dream.” In the fall of 1958, he decided to take a gamble, borrowing $5,000 on a life insurance policy to purchase an existing cheese company. This was the beginning of Great Greg Dryer, Longtime Dairy Industry Leader, To Retire From Saputo Lincolnshire, IL—Greg Dryer, a longtime Saputo executive who has held leadership positions in a number of dairy industry organizations, has announced his retirement, effective June 30, 2016. Dryer has worked for Saputo and its predecessors for more than 35 years, and was the former president of Avonmore Cheese,. During his career, Dryer served on the board of directors and also as president of the American Dairy Products Institute. For many years, he has also served on the boards of organizations such as the National Cheese Institute, Wisconsin Cheese Makers Association, Dairy Institute of California, US Dairy Export Council, and the California Creamery Operators Association. Greg Dryer Greg Dryer was also a member of the Wisconsin Dairy 2020 Council. “I will miss my dairy industry friends and colleagues who are among the best people this life has to offer,” Dryer said, adding “I will be forever grateful to the Saputos for allowing me the privilege to be part of their wonderful family.” Cheese Mould Rotators Ideal for Blue, Muenster, Brick or any cheese ese requires rotation. Kusel Cheese Mould Rotators are engineered for labor-saving production. www.kuselequipment.com sales@kuselequipment.com 920-261-4112-phone For more information circle #9 on the Reader Response Card on p. 10 George Cornell Hans Epprecht Lakes Cheese, now one of the largest converters of natural cheese in North America. Under Epprecht’s leadership, Great Lakes Cheese supported retailers in standardizing the size of shredded cheese packages, including a top zipper when the industry was using side zippers. He also worked alongside equipment manufacturers to change the flushing process of chunk cheese to enhance shelf life. Epprecht answered the needs of his cheese customers by purchasing a Cheddar cheese plant in Adams, NY, in 1984. Eleven years later, Great Lakes Cheese added a processed cheese plant in La Crosse, WI, to support retailers’ processed cheese needs. Today, Great Lakes Cheese services its retail and foodservice customers with nine plants strate- gically located in Ohio, New York, Wisconsin, Utah and Tennessee. In 1971, Epprecht gifted 20 percent of the company to the employees through stock options. This moment defined a new culture for employee owners. Empowered as owners, Great Lakes employees remain committed to the entrepreneurial spirit Hans Epprecht built into the fabric of the company. Hans Epprecht retired from daily operations at Great Lakes Cheese in 2002. Today, the second and third generation of the Epprecht family are committed to the success of this growing, privately held enterprise. Attendees at the International Cheese Technology Expo are invited to join the Industry Achievement Awards Breakfast on April 14. For more information, visit www.cheeseexpo.org. ence working in Europe, Africa and the Caribbean. succeeds longtime board member PERSONNEL JERRY JEROME, who recently JACQUES LEFEBVRE has been selected as the new andafter CEO MICHAEL SAMPSON has announced hispresident retirement ofjoined the Dairy Processors Association Heher succeeds the Food Facility Design of 18 Canada years of(DPAC). service. In role DON JARVIS, who Engineering. has led DPACatas PepsiCo, president TrishLukasik and CEO for over Division of Excel leadsa decade, andis will continue to support as marketing a senior advisor Sampson an expert in dairy and the organization sales, shopper and during the transition. career spans over 25 years and includes food facility design Lefebvre’s and brings sales strategy groups for a $10 bilexperience in journalism, strategic government over 30 years of experience toaffairs, lion communications, portfolio of brands. She also and stakeholder senior executive Excel’s team. relations. He has held served as senior vicepositions presidentwith of national member organizations, bothPepsiCo in the business and not-for-profit Beverages, region vice sectors. has also held seniorwas positions with federal cabinet ROSS HeGLENDINNING president of Frito-Lay andministers. general named senior vice president, Ser- manager of the PepsiCo Costco JARED PARKO theLaval, new deputy director to the Ohio Department vice Division, of is Alfa Inc. team. ofInAgriculture’s (ODA) senior management team. In this role, Parko this role, Glendinning will be will focus onfor lableading operations health, LEFEBVRE dairy, food safety and responsible parts and sales,animal JACQUES has been meat issues. Parko services, most recently as labasoperations for reconditioning fieldserved selected the newmanager president Food Safety Services support in Columbus, OH. of Hethe also worked in the services andNet technical and CEO Dairy Processors Dairy Food Safety Lab atAlfa the Laval UC-Davis School of of Veterinary Medicine. activities. He joined Association Canada (DPAC). TERRI was named of ODA’s Division of who Food in 1982GERHARDT as marine engineer for chief He succeeds DON JARVIS, Safety. She has been withproducts ODA since most recently serving the company’s military has 2000, led DPAC as president andas assistant chief of the Food SafetyinDivision. group. Glendinning worked CEO for over a decade, and will various areas of the organization, continue to support the organizaLINCOLN FRAZIER been appointed sales manalong with capital has equipment tion assoutheast a senior regional advisor during the ager for Dorner Manufacturing working with sales marketing and sales management. Corp., transition. Lefebvre’s careerchannel spans partners accounts to grow theover company’s and sanitary He was and mostkey recently responsible 25 yearsindustrial and includes expeconveyor throughout the southeastern US. Frazierstrategic succeeds for Alfa business Laval’s services for the rience in journalism, BOB SOUTHARD, who will retire after a 25-year career withgovernDorner. industrial process markets. affairs, communications, He brings strong sales and regional management experience from a long ment and stakeholder relations. career in the automation and cuspackaging positions TRISH LUKASIK, chief He industries, has held including senior executive with Denso, and most recently, Buhler Sortex. tomer officerEpson and senior vice presipositions with national member dent for PepsiCo North American organizations, both in the busiGEORGE has joinedastheness technical support team of ProSNutrition,D’ABREU has been appointed and not-for-profit sectors. He pect Analytical Technology, Inc. headquartered in Plymouth, MN. a new board of directors member has also held senior positions with D’Abreu will be responsible for installing andcabinet servicing ProSpect in-line for Sargento Foods, Inc. Lukasik federal ministers. January 15, 2016 TPP Dairy Impacts (Continued from p. 1) In the end, TPP instead resulted in more modest improvements in the degree of new access to Canada’s consumers (as opposed to the existing level of imports by Canadian processors destined only for re-export outside of Canada). However, as part of that process, the US granted Canada a more generous market access package than the US secured from Canada. Impact of US tariff elimination on milk powders granted to New Zealand and Australia: In TPP the US agreed to eliminate tariffs on milk powders exported by New Zealand and Australia to the US. Particularly if this access is coupled with a potential approval of Grade A status for New Zealand’s dairy sector, it will be important for USITC to calculate the impact this decision could have on the US dairy market and the degree to which imported milk powder could in time displace domestic milk usage as an ingredient in certain products. Impact of US tariff elimination granted to Japan: Contrary to past practice, in TPP the US opted to ultimately eliminate US dairy tariffs for all Japanese exports despite not having reciprocity for this approach from Japan. Impact of US tariff elimination on specific cheeses granted to Canada, New Zealand and Australia. The US opted to eliminate tariffs on two cheese lines currently subject to tariff-rate quotas (TRQs) and that annually see considerable global imports. These are 04069097 for “Miscellaneous cheese” for New Zealand and Canada and 04069048 for Swiss/ Emmental cheese for Australia. Impacts on US exports given TPP competition from New Zealand and Australia: Unlike most other recent US FTAs, TPP includes significant dairy competitors. As a result, the US will not win all the new access for dairy that TPP creates. Impact on TPP results given likelihood of European Union (EU) FTAs in TPP region: Although the EU is not a party to the TPP, it has been carefully negotiating its own agreements with many TPP partners. The EU has completed negotiations with Canada and Singapore, reached an agreement in principle with Vietnam and has other talks underway in the region with important markets such as Japan. SPS And GI Provisions The two most important non-tariff achievements in the TPP, according to USDEC and NMPF, are its sanitary and phytosanitary (SPS) chapter and the intellectual property chapter’s geographical indication (GI) provisions. Both areas establish “ground- Page 7 CHEESE REPORTER breaking new commitments” that should help keep in check the prospect for TPP countries to erode existing and future market access opportunities for US dairy exporters through unjustified and sudden regulatory determinations, NMPF and USDEC said. TPP is the first US trade agreement to include rules and disciplines on SPS measures that go beyond those contained in the SPS Agreement in the World Trade Organization (WTO), USDEC and NMPF noted. Nearly all of the “WTO-plus” provisions are fully enforceable through the TPP dispute settlement mechanism. The most significant provisions in the SPS chapter, NMPF and USDEC said, include science and risk analysis, equivalence, import checks, transparency, and cooperative technical consultations. “The strengthened SPS commitments address the escalating threat that unwarranted and sudden SPS measures are posing to US agricultural exports around the world,” Suber said. At the time of the TPP’s launch, the EU’s shift from a multilateral effort to limit competition via “inappropriate abuse” of GIs to a primary bilateral approach to this goal had already commenced, USDEC and NMPF noted. As such, the US dairy groups worked jointly with the dairy industries in Australia, New Zealand and Mexico to establish the importance of addressing this emerging type of trade barrier and formulating tools to begin to tackle it more effectively. The TPP’s reminder that GIs are a type of intellectual property (IP) and as such should be subject to similar types of due process procedures required of other types of IP is a “fundamentally important ele- ment,” USDEC and NMPF said. This will be relevant as the US continues to build upon this text to further tackle the EU’s aggressive agenda to limit competition from other suppliers in common food categories. “We view the TPP GI text as an important starting point for future work on the issue of GIs and common food names,” NMPF and USDEC said. “It does not resolve this matter since it does not directly block the EU from inappropriately restricting the use of common food names important to global trade, but it does charge the course for addressing this topic in a much stronger direction.” Among the most significant provisions in the TPP’s GI section, NMPF and USDEC said, are: Registration, opposition and cancellation: A party to the agreement is required to publish all applications for registration and to establish procedures for opposition and cancellation. Grounds for opposition include: the GI is likely to cause confusion with a trademark; or the GI is a common name in the territory of the party. Requirements are different regarding GIs protected pursuant to future international agreements. Guidelines for determining whether a term is a common name. In determining whether a term is a common name, a party must “take into account how consumers understand the term in the territory of that Party.” The agreement lists factors a party may consider in this context. Multi-component terms: The agreement requires that common names that are components of compound GIs not be protected; i.e., parties must allow their continued unrestricted use. Volunteers Sought For World Championship Cheese Contest Madison—Volunteers are being sought for the 2016 World Championship Cheese Contest, with several opportunities to help both before and during the contest. Wisconsin Cheese Makers Association (WCMA), the contest host, is seeking volunteers to sign up for product check-in shifts. Around 25 to 30 people are needed to check in contest entries at the WOW Logistics warehouse in Little Chute, WI. The two-day check-in will offer the following opportunities to help: 12:30 to 4:00 p.m. on Thursday, March 3, and/or 8:00 a.m. to 1:00 p.m. on Friday, March 4. All volunteers will receive lunch at a local restaurant and an official B-Team Volunteer hat. Assistance is also requested at the 2016 World Championship Cheese Contest site, the Monona Terrace Convention Center in Madison. Fifty people are needed each day to assist the judges. Days and times are as follows: Monday, March 7, and Tuesday, March 8, 8:00 a.m. to 5:00 p.m. Lunch and an official B-Team Volunteer hat are provided. Also, 20 people are needed on Thursday, March 8, from 1:00 to 6:00 p.m. to prepare the cheeses for the final round charity event Thursday evening. Volunteers are welcome to stay for the evening event, which begins at 6:30 p.m. The World Championship Cheese Contest is an event that succeeds only with the assistance of its volunteers. Volunteer sign-up information and forms can be found at www. worldchampioncheese.org. Proven to produce higher yields and higher consistency with higher profits. Specializing in Advanced Cheesemaking Equipment for over 15 years! APT serves the Food & Dairy industries with plant concept, design, process, electrical and mechanical engineering; along with equipment manufacturing and complete installation. www.apt-inc.com Minnesota | Idaho | California | 877-230-5060 | apt@apt-inc.com APT Advanced Products also include : CIP Systems - Catwalks - HTST Systems - Tanks - Strainers - Enclosures - Flow Verters - Specialized Fabrication For more information circle #10 on the Reader Response Card on p. 10 Page 8 CHEESE REPORTER Second Consecutive Win For Farm At Doe Run In PA Farm Show Cheese Contest Harrisburg, PA—Samuel Kennedy and Matt Hettlinger of the Farm at Doe Run, Coatesville, PA, won Best of Show for the second consecutive year at the second annual Pennsylvania Farm Show Cheese Competition here. Their winning entry, Seven Sisters, is similar to Comté, aged for one year and made from grassfed Jersey raw milk. Seven Sisters also took Best of Show at last year’s competition. Amos Miller of Misty Creek Goat Dairy, Leola, earned second Best in Show for his goat’s milk Kid Chego entry. Farm at Doe Run’s Kennedy and Hettlinger also won third Best in Show for St. Malachi, a raw cow’s milk cheese with elements of both Gouda and Gruyere. Judges evaluated each of the 70 cheese entries from 25 Pennsylvania cheese makers on aroma, body, texture, and taste. Dr. Kerry Kaylegian, dairy foods research and extension associate from Penn State, served as coordinator of the Farm Show cheese competition. “This year we had an excellent representation of Pennsylvania cheese makers, including artisan, farmstead, and commercial producers,” Kaylegian said. The technical judging team included international judges from the cheese industry, and the aesthetic judging team included cheese professionals who have completed the Certified Cheese Professional Exam, certifying them as official cheese mongers. Top winners are: Cow’s Milk Cheeses Cheddar, Colby, & Monterey Jack: David and Ester Esh of Lykens Valley Creamery, Millersburg, Cheddar Cow Flavored Cheddar, Colby, & Monterey Jack: Vernon Brubaker of September Farm Cheese, Honey Brook, Chili Pepper Cheddar Swiss and Alpine Style: Samuel Kennedy and Matthew Hettlinger of The Farm at Doe Run, Coatesville, St. Malachi Soft Cheese: Wade T. Smith of Caputo Brothers Creamery, Honesdale, Ricotta Surface-Ripened Cheese: Emily Montgomery of Calkins Creamery, Coatesville, with Noblette Semi-Soft, Semi-Hard and Hard Cheese: Samuel Kennedy and Matthew Hettlinger of The Farm at Doe Run, Seven Sisters Goat’s Milk Cheeses Soft Goat Milk Cheese: Jennifer Bradbury of Camelot Valley, Dover, Chevre Mold-ripened Goat Milk Cheese: Al Renzi of Yellow Springs Farm, Chester Springs, Cloud Nine RELCO® E-Z ACCESS® Deck custom rail and tanker access platforms. We work with you for the right fit & seamless install T H E R E L C O® A D V A N TA G E Email Parts@RELCO.net or call 320-222-0252 For more information contact: John Haugen WSU Creamery Manager jfhaugen@wsu.edu Phone: 509-335-5737 January 15, 2016 Open Class Cheese From Goat Milk: Amos Miller of Misty Creek Goat Dairy, Leola, with Kid Chego All Milks/Mixed Milk Cheeses Blue-Veined: Sue Miller of Birchrun Hills Farm, Chester Springs, Birchrun Blue Washed Rind and Smear Ripened: Sue Miller of Birchrun Hills farm, Red Cat Smoked Cheese: David and Esther Esh of Lykens Valley Creamery, Millersburg, Cheddar Open Class Cheese From Sheep Milk or Mixed Milk: Thomas Shaer of Meadowset Farm, Landenberg, The Last Straw Open Class Flavored Soft Cheese From Cow or Goat Milk: Jennifer Bradbury of Camelot Valley, Dover, Holiday Chevre Open Class Flavored SemiSoft, Semi-Hard, and Hard Cheese from Cow or Goat Milk: Sue Miller of Birchrun Hills Farm, Tommy Mole Cottage Cheese: Dave Jones, Titusville Dairy,Titusville European Food Safety Authority Says Milk Treated With Ultraviolet Radiation After Pasteurization Is Safe opinion, the manufacturing process involves the incorporation of a UV source (i.e. SurePure turbulator) in a post-pasteurization section of the processing line. Pasteurized milk is pumped or gravity fed through a specified number of SurePure turbulators which irradiate the pasteurized milk with UV-C. Considering that there are no relevant changes in nutrient composition in the milks following the proposed UV treatment, the EFSA considers the specified parameters as acceptable, and concludes that the data provided on the production process are sufficient and do not give rise to safety concerns. “UV-treated milk is comparable to non-UV-treated milk, except for the vitamin D3 content,” the EFSA stated. No adverse effects regarding the contribution of milk to nutrient intakes are expected from the consumption of UV-treated milk in substitution of non-UV-treated milk. Information was provided on the microbiological status of the UV-treated milk, and the EFSA said it considers that the data provided do not give rise to concerns with regard to the microbiological quality of the novel food. With regard to allergenicity, the EFSA considers that the risk of allergic reactions to the novel food is not dissimilar to that associated with conventional milk. The EFSA’s opinion follows an announcement last November by SurePure of the decision by South Africa’s Department of Health to endorse ongoing studies of SurePure’s technology as an alternative to pasteurization for the treatment of raw milk to make it safe for human consumption. If successful, the program will allow South Africa’s farmers to use the SurePure purification technology as an alternative processing method for raw milk, SurePure said. “We are very pleased at the progress we are making with our regulatory partners. The EFSA opinion completely validates the position we have taken for 10 years, that both the product that results from the application of our technology and the production process that utilizes our technology, are safe and enhance the economic value of the foods and beverages we treat,” said Guy Kebble, SurePure’s CEO. Brussels, Belgium—Cow’s milk to which a treatment with ultraviolet (UV) radiation is applied after pasteurization in order to extend the shelf life of the milk “is safe,” according to a scientific opinion published this week by the European Food Safety Authority (EFSA). The opinion resulted from a novel foods application submitted to EFSA by SurePure’s licensee for the United Kingdom and Ireland, which was originally filed in September of 2012 and supplemented in February of 2015. The applicant provided compositional data on macro- and micronutrients in milk subjected to UV treatment. The UV-treated milk contained significant amounts of vitamin D3, whereas the contents in the control milk were below the limit of detection. Apart from vitamin D3, there were no significant differences in the nutrient content of milks treated with UV as compared to control milk, the EFSA said. From the data provided, the EFSA considers that the formation of lipid or protein oxidation products is not of safety concern. The EFSA, therefore, considers that the provided compositional data, the specifications and the data from batch testing do not give rise to safety concerns. As explained in the EFSA’s d's Dairy In orl d W Since 1876 ee ry W kly ust Serving the January 15, 2016 Page 9 CHEESE REPORTER MARKET PLACE CLASSIFIED ADVERTISING phone: (608) 246-8430 fax: (608) 246-8431 e-mail: classifieds@cheesereporter.com The “Industry’s” Market Place for Products, Services, Equipment and Supplies, Real Estate and Recruitment Classified ads should be placed by Thursday for the Friday issue. Classified ads charged $.75 per word. Classified ads payable in advance. Display Classifieds charged per column inch. 3. Products, Services 7. Help Wanted 10. Cheese & Dairy Products LOOKING FOR HARD TO FIND PRODUCTS, equipment or services? For more details, call 608-246-8430 or email info@cheesereporter.com HELP WANTED: Full-time Assistant Cheese Maker at the CHALET CHEESE CO-OP, Monroe, WI. Must be a Wisconsin licensed cheese maker with pasteurizer certification. Contact Myron Olson at 608-558-0604 or email: chaletcheese@yahoo.com KEYS MANUFACTURING: Dehydrators of scrap cheese for the animal feed industry. Contact us for your scrap at (217) 465-4001; email keysmfg@aol.com. 4. Walls, Flooring 1. Equipment for Sale FOR SALE: Westfalia Separator discs: MSA 200, MSA 160, SAMM 20006. Call Great Lakes Separators at 920863-3306; or email Dave at drlambert@ dialez.net. EPOXY OR FIBERGLASS floors, walls, tank-linings, and tile grouting. Installed by M&W Protective Coating Co. LLC. Call (715) 234-2251 WANTED: Milk plant Production Manager working directly with owners and management to maintain an efficient production schedule, give performance reviews and motivate staff to meet production goals. Ideal candidate will have excellent leadership, problem-solving and organizational skills with a proven ability to manage multiple priorities with minimal direction. Must be a selfmotivate and results-oriented leader who has exceptional interpersonal and communication skills. We require that our Production Supervisors have at least 3-5 years of strong mechanical and operations leadership experience. Expertise in a dairy plant is preferred. Call: 941-893-9181 or email: scott. ddf@gmail.com EXTRUTECH EG I S T ER BY FE B RUA RY 2 ND PLASTICS ANDSanitary SAVE 2 0% POLY BOARD panels provide bright SEPARATOR NEEDS - Before you buy a separator, give Great Lakes a call. TOP QUALITY, reconditioned machines at the lowest prices. Call Dave Lambert, Great Lakes Separators at (920) 863-3306 or e-mail drlambert@dialez. net. HIGH CAPACITY SEPARATOR: Alfa-Laval hmrpx 718 HGV hermetic separator. 77,000 pounds per hour separation/110,000 pounds per hour standardization. Call Great Lakes Separator at 920-863-3306 or email drlambert@dialez.net. © white, non-porous, easily cleanable surfaces, perfect for non-food contact applications. CFIA and USDA accepted and Class A for smoke and flame. Call 888-818-0118 or epiplastics.com. 5. Real Estate FOR SALE: Specialty powder products company. Small but rapidly growing. Midwest location. Owner’s health is forcing this sale. Reply to Box J-1085, c/o Cheese Reporter, 2810 Crossroads Dr., Madison WI 53718 DAIRY PLANTS FOR SALE: http:// dairyassets.webs.com/dairy-plants. Call Jim at 608-835-7705 Wisconsin Cheese 6. Promotion & Placement Industry Conference PROMOTE YOURSELF - By 2015 FOR SALE: Car load of 300-400-500 contacting Tom Sloan & Associates. FOR SALE: 1500 and 1250 cream tanks. Like New. (800) 558-0112. (262) 473-3530. late model open top milk tanks. Like new. (262) 473-3530 CHEESE MAKER WANTED: Start-up Cheesemaker. Duties include start-up and production supervising. Benefits are available. Please apply within DECATUR DAIRY, INC., W1668 Highway F, Brodhead, WI 53520; or apply by calling 608-897-8661 or emailing qualifications to Decatur@decaturdairy.com Job enhancement thru results oriented professionals. We place 3001EW TU-WAY cheese makers, production, technical, Exact Weight Cheese Cutter Products maintenance, engineering and sales 2. Equipment Wanted 3010 TU-Way 10. Cheese & Dairy Designed to cut cheese blocks into portions management people. Contact Dairy Simultaneously cuts either two 40-lb blocks for FOR packaging or further processing. 10 month ULLMER’S DAIRY EQUIPMENT SALE: Wisconsin or up to four 20-poundSpecialist Mozz loaves. David Sloan, Tom Sloan aged StarK Kosher Parmesan and 3 is looking to buy used daisy hoops, Terri Sherman. TOM SLOAN & General Machinery Corporation General MachineryorCorporation month aged Asiago. Shreds, blocks, midget hoops, A-frame presses, 20 lb ASSOCIATES, INC. PO Box 50, Call NOW at 1-888-243-6622 Call NOW at 1-888-243-6622 chunks, loaves. For more information block molds, water/milk silos, homogsales@genmac.com Watertown, WI 53094. Call: (920) 261- Email: Email: sales@genmac.com www.genmac.com ralph@harmonyspecialty.com enizers, and separators. Pleasewww.genmac.com contact 8890 or FAX: (920) 261-6357; or email: email: APRIL 22–23, 20157. Help Wanted us at (920) 822-8266 or e-mail us at ullmersdairyeqpt@netnet.net. WANTED TO BUY: Westfalia or AlfaliantLaval energy center separators. Large or small. Old or Top dollar paid. Call Great Lakes adisonnew.wisconsin Separators at (920) 863-3306 or email drlambert@dialez.net , n the nation’s top seminar for the 3. Products, Services eese, butter and whey industry. tsloan@tsloan.com TABLETOP MINI-EXPO 11. Milk SHEEP MILK: ISO buyer to pick up excellent quality bulk raw Grade A milk for the 2016 season. Reference on quality available. We are located in Central NY. Call 607-638-5794 or email: rjpeeters6@yahoo.com 12. Miscellaneous 14. Testing Services Promote your microbiological, nutritional or food sample testing services here. Call Cheese Reporter at 608-246-8430 for information or email info@cheesereporter.com to advertise here and at www.cheesereporter.com Hydrauflake Chunker Frozen Block Flaker Designed to chunk frozen cheese and butter blocks in preparation for further processing. General Machinery Corporation Call NOW at 1-888-243-6622 Email: sales@genmac.com www.genmac.com Dairy Procurement Manager The largest WCIC Tabletop Mini-Expo ever features 230 supplier partners exhibiting their ideas and And, don’t missCheese the USA LLC has an exciting opportunity for a Dairy Procurement Manager. Alouette is WANTED: Plantlatest manager for technology. newly Alouette of the popular Ideas Showcase; concise a premier producer of specialty cheeses and maker of the Alouette brand. acquired, yet wellreturn established, Cheddar presentations right on the Mini-Expo floor. cheese plant located in the Mohawk This key position will be responsible for all dairy and non-dairy ingredients for cheese Valley region of New York. Great potenmanufacturing plants of Alouette Cheese USA (Fleur de Lait East, Fleur de Lait West and SCHEDULE HIGHLIGHTS tial for expansion. Must be fully qualified Kolb Lena) while assuring optimum cost and adequate supply. This position is based in opening address from: New Holland, PA, and reports to the Director of Materials Management. and committed to making quality prodRobert Coallier CEO, Agropur Cooperative ucts. Call George at 617-448-4292. Position ResPonsibilities: educational seminars n Manages milk and cream procurement for 3 manufacturing sites n Supervises MRP & Milk Accounting Clerk and Field Sanitarians Finding Solutions With Your CDR University of Wisconsin-Madison n Recommends and implements the dairy risk management strategies Cheese Doctors On Call 1820markets Single Direction Wisconsin Center for Dairy Research n Determines least cost formulas based upon current World Markets Knocking At Your DoorCheese Cutter sted by & n Manages milk sales assuring optimum return while meeting FMMO qualifications CDR What Are You Going To Do? Reduces wire cutable product into uniform n Develops and implements patron programs portions for dicing, shredding,melting, or blending. cdr workshops Call NOW 1-888-243-6622 The UW-Madison, College of Ag at and Life Sciences, Wisc. Center for& Texture Dairy Defects n Manages the dairy accounting function – including Market Administrator audits Cheese Flavor n Recommends and implements dairy budgets and forecasts for all dairy ingredients sales@genmac.com Research is looking for a Email: cheesemaker who would like Whey to work in a team Flavor Defects n Sources and purchases all non-dairy ingredients for 3 manufacturing sites. edule and information available at www.genmac.com E ARCH ES CENTER F Animal Care & Dairy Marketing DAIRY R OR Cheesemaker General Machinery Corporation General Machinery Corporation environment on new and innovative research activities involving all cheese Call NOW at 1-888-243-6622 events highlighting the 2015 united Email: sales@genmac.com types and varieties. education, skills and exPeRience ww . cheeseconference .org www.genmac.com states championship cheese contest Bachelor’s degree, business administration or related field n This position is responsible for the manufacture of natural/processed/cold n 4-6 years dairy industry related procurement pack cheeses in the dairy plant setting. This includes carrying out and docun Leadership: a demonstrated ability to lead people and achieve results through others menting all activities relating to the set-up, carrying out, and sanitation n Negotiation skills applied to vendor management involved in the cheesemaking process. Applicants must have the ability to n Planning: an ability to think ahead and plan over a two-year time span work on their feet for extended periods of time, be able to bend and stoop, n Problem analysis and problem resolution at both a strategic and functional level as well as lift up to 75 pounds or more. Proficiency in operation and mainn Competitive salary & benefits package. Benefits start on 1st day of employment. tenance of a wide variety of dairy processing equipment is highly desirable. Send resume to: Excellent state benefit package with wage commensurate to experience. Rachel Bull Complete position can be found at: http://www.ohr.wisc.edu/Weblisting/ External/PDSummaryApply.aspx?vacid=97483&title=84600 Alouette Cheese USA LLC How to Apply: Applications must be submitted online at https://uwjobapply.wisc.edu/Apply.aspx?chris=97483 Equal Opportunity Employer 3990 N. Sunnyside Rd, Lena, IL 61048 HR@alouettecheese.com Page 10 January 15, 2016 CHEESE REPORTER California Class 1 Minimum Prices & Other Advanced Prices - February 2016 Class 1: Lb. Fat $2.2909 $2.2909 Northern CA Southern CA Equivalent LB. Fluid $0.0167 $0.0198 Lb. SNF $0.6315 $0.6315 Statewide Average CWT Price Based Upon Production Based Upon Utilization Per CWT $14.98 $15.25 $14.99 $15.13 DAIRY PRODUCT SALES $1.80 January 13, 2016—AMS’ National Dairy Products Sales Report. Prices included are provided each week by manufacturers. Prices collected are for the (wholesale) point of sale for natural, unaged Cheddar; boxes of butter meeting USDA standards; Extra Grade edible dry whey; and Extra Grade and USPH Grade A nonfortified NFDM. • Revised $1.70 Style and Region Jan. 9 CME vs AMS $1.60 40-Pound Block Avg $1.50 $1.40 J F WEEK ENDING Jan. 2 M A M J J A S O Dec. 26 N D J Dec. 19 40-Pound Block Cheddar Cheese Prices and Sales Commodity Market Prices Product Cheese, US 40-block, CME AA Butter, CME CA Extra Grade & Grade A NFDM Western Dry Whey (Mostly) $ Per LB. $1.4678 $2.0406 $0.7815 $0.2400 Commodity Reference Price for February Class 1 - $15.4504 CME Butter Tracker- 2015 vs. 2014 vs 2016 Weighted Price US Sales Volume US 1.4635 13,511,049 Dollars/Pound 1.4709• Pounds 12,097,704• 1.5076 1.5570• 10,139,837• 12,941,073• 500-Pound Barrel Cheddar Cheese Prices, Sales & Moisture Contest Weighted Price Dollars/Pound US 1.5873 1.5586• Weighted Price Adjusted to 38% Moisture US 1.5160 1.4857• Sales Volume Pounds US 11,141,233 8,839,183• Weighted Moisture Content Percent US 35.08 34.96• 1.5744• 1.6124 1.4973• 1.5362 8,629,095• 10,400,022 34.81• 34.93 Butter $3.00 Weighted Price US Sales Volume US $2.80 $2.60 2.0459 4,723,918 Dollars/Pound 2.0411 Pounds 3,595,507 2.0664 2.4649• 3,699,323 2,990,807• Dry Whey Prices $2.40 Weighted Price US Sales Volume US $2.20 $2.00 0.2339 6,422,788 Dollars/Pounds 0.2351• 0.2296 4,448,240• 6,267,195 0.2313 8,437,087 Nonfat Dry Milk $1.80 Average Price US Sales Volume US $1.60 $1.40 $1.20 J F M A M J J A Lactose Prices S O N $1.02 $0.92 $0.82 $0.72 $0.62 $0.52 $0.42 $0.32 $0.22 $0.12 Name _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ For information about the advertisements or new product information, circle the number below which corresponds to the ad or article in which you are interested. Issue Date: 1/15/16 1 Title _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 7 Company _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 14 20 Address _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 26 32 City/St/Zip _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 38 E-Mail _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 44 TYPE OF BUSINESS: ___Cheese Manufacturer ___Cheese Processor ___Cheese Packager ___Cheese Marketer(broker, distributor, retailer ___Other dairy processor (butter, cultured products) ___Whey processor ___Food processing/Foodservice ___Supplier to dairy processor ___Other________________ JOB FUNCTION: ___Company Management ___Plant Management ___Plant Personnel ___Laboratory (QC, R&D, Tech) ___Packaging ___Purchasing ___Warehouse/Distribution ___Sales/Marketing ___Other_______________ PLEASE SEND ME MORE INFORMATION ON: ___Subscribing to Cheese Reporter ___Cheese Reporter’s Reference Books 50 56 62 69 75 81 87 93 99 105 111 117 123 2 8 15 21 27 33 39 45 51 57 63 70 76 82 88 94 100 106 112 118 124 3 10 16 22 28 34 40 46 52 58 64 71 77 83 89 95 101 107 113 119 125 4 11 17 23 29 35 41 47 53 59 65 72 78 84 90 96 102 108 114 120 126 5 12 18 24 30 36 42 48 54 60 67 73 79 85 91 97 103 109 115 121 127 0.7748 0.7904 12,265,158 SETTLING PRICE High/Low Range (Central and West: Mostly) (Print Your Name and Address Clearly Below) 13,315,418 Dollars/Pound 0.7882• Pounds 15,197,183• 20,308,267• DAIRY FUTURES PRICES D Since 2010 CHEESE REPORTER READER RESPONSE CARD 0.7807 6 13 19 25 31 37 43 49 55 61 68 74 80 86 92 98 104 110 116 122 128 ___Material to advertise in Cheese Reporter ___Other____________________________ *Cash Settled Date 1-8 1-11 1-12 1-13 1-14 Month January 16 January 16 January 16 January 16 January 16 NDM* 77.575 77.675 77.950 78.000 78.100 Butter* 204.500 204.500 204.500 207.500 209.000 Cheese* 1.5090 1.5130 1.5150 1.5150 1.5180 1-8 1-11 1-12 1-13 1-14 February 16 February 16 February 16 February 16 February 16 13.55 13.45 13.56 13.68 13.98 13.48 13.48 13.43 13.59 14.16 23.000 22.825 22.750 22.750 22.975 78.875 78.925 78.750 79.600 80.500 207.000 207.000 208.200 213.200 223.200 1.5010 1.4910 1.5020 1.5120 1.5410 1-8 1-11 1-12 1-13 1-14 March 16 March 16 March 16 March 16 March 16 13.86 13.75 13.74 13.90 13.99 13.71 13.71 13.71 13.90 14.36 23.250 23.050 23.100 23.025 23.025 82.450 82.000 81.475 82.325 83.000 206.775 206.775 207.175 212.175 222.175 1.5300 1.5250 1.5220 1.5390 1.5470 1-8 1-11 1-12 1-13 1-14 April 16 April 16 April 16 April 16 April 16 14.30 14.13 14.05 14.11 14.21 14.08 14.08 14.08 14.08 14.83 24.000 23.075 23.275 23.325 23.325 86.975 86.450 84.750 86.150 86.425 207.650 207.800 208.575 213.575 223.575 1.5730 1.5650 1.5550 1.5620 1.5600 1-8 1-11 1-12 1-13 1-14 May 16 May 16 May 16 May 16 May 16 14.66 14.50 14.42 14.50 14.60 14.51 14.51 14.30 14.35 15.10 24.500 23.425 23.525 23.525 23.525 90.875 90.925 88.950 90.600 91.000 208.500 208.500 208.500 213.500 222.250 1.6060 1.5970 1.5920 1.5990 1.6030 1-8 1-11 1-12 1-13 1-14 June 16 June 16 June 16 June 16 June 16 14.90 14.83 14.78 14.85 14.95 14.84 14.84 14.84 14.84 15.59 24.525 24.500 23.875 24.000 24.025 94.350 95.000 93.625 95.500 96.000 208.525 208.750 208.775 213.775 223.775 1.6330 1.6270 1.6260 1.6300 1.6320 1-8 1-11 1-12 1-13 1-14 July 16 July 16 July 16 July 16 July 16 15.15 15.12 15.12 15.20 15.28 15.17 15.17 15.17 15.17 15.92 25.250 23.950 23.400 23.825 24.125 97.500 97.975 96.825 98.000 98.550 209.000 209.000 211.000 216.000 223.5000 1.6600 1.6600 1.6560 1.6650 1.6660 1-8 1-11 1-12 1-13 1-14 August 16 August 16 August 16 August 16 August 16 15.54 15.50 15.52 15.61 15.65 15.45 15.45 15.45 15.54 15.93 25.975 25.000 24.450 24.450 24.950 100.400 100.400 99.700 101.000 101.125 209.200 209.275 211.000 213.025 222.000 1.6970 1.6970 1.6970 1.7030 1.7030 1-8 1-11 1-12 1-13 1-14 September 16 September 16 September 16 September 16 September 16 15.82 15.81 15.85 15.88 15.94 15.65 15.63 15.63 15.63 15.85 26.250 26.250 26.250 26.025 26.025 101.750 101.750 101.775 103.225 103.225 209.250 209.500 211.500 213.025 218.400 1.7250 1.7250 1.7200 1.7300 1.7280 1-8 1-11 1-12 1-13 1-14 October 16 October 16 October 16 October 16 October 16 15.93 15.93 15.90 16.02 16.05 15.70 15.70 15.70 15.70 15.76 27.250 27.250 27.225 26.025 26.025 104.050 104.000 103.800 103.800 103.800 207.050 207.050 208.525 210.025 215.025 1.7340 1.7300 1.7300 1.7420 1.7410 15.86 15.86 15.86 15.92 15.93 32,358 15.70 15.70 15.70 15.71 15.72 2,499 27.500 27.500 27.250 27.250 27.250 5,196 104.625 104.625 104.625 104.625 104.650 7,458 205.025 205.025 206.525 206.975 207.775 4,252 1.7190 1.7190 1.7200 1.7300 1.7300 31,131 1-8 November 16 1-11 November 16 1-12 November 16 1-13 November 16 1-14 November 16 Interest - Jan. 7 Class III* Class IV* Dry Whey* 13.68 13.14 24.075 13.72 13.25 23.900 13.72 13.20 23.825 13.74 13.33 23.875 13.76 13.42 23.750 January 15, 2016 DAIRY PRODUCT MARKETS AS REPORTED BY THE US DEPARTMENT OF AGRICULTURE WHOLESALE CHEESE MARKETS NATIONAL - JAN. 8: Many manufacturers are resuming regular schedules following the holidays. Although some additional milk is being diverted back into bottling with school sessions restarting after winter break, there is plenty of milk available for processing. Some plants are increasing production, while taking advance of ample milk supplies and associated price discounts. Demand for Cheddar is steady to higher, while Swiss demand is steady to lower. Mozzarella demand is picking up as pizza companies resume production and push a little more in advantage of the football playoffs and Super Bowl. NORTHEAST- JAN. 13: Overall, production in the Northeast is steady to increasing seasonally. Demand is improving, as retailers return to the market following post-holiday inventory appraisals. However, manufacturers of Swiss cheese eased production in an effort to control stock levels as sales have dipped behind lackluster demand. Foodservice accounts are active with orders being placed by some larger cheese buyers in anticipation of Super Bowl events. Wholesale prices, delivered, dollars per/lb: Cheddar 40-lb blocks: $1.8950 - $2.1800 Process 5-lb sliced: $1.7000 - $2.1800 Muenster: $1.9150 - $2.2650 Swiss Cuts 10-14 lbs: $3.1700 - $3.4925 MIDWEST AREA - JAN. 13: This week, Mozzarella production has notched up to sustain post-holiday frozen pizza production demand. Cheese manufacturing is back closer to normal schedules, with less spot milk now available. The arrival of the coldest weather of this winter in the Upper Midwest has brought disruptions to cheese manufacturing. Broken water mains have temporarily affected some cheese production, sending milk out to find other manufacturers. A few incidents of milk trucks not starting have affected the flow of milk from some producers to cheese plants. The year opens with uncertainty hanging over cheese markets. The retrospective on last year is surprise, but relief, that the unanticipated higher cheese production was successfully absorbed. However, global milk supplies for 2016 are looking like they will also be strong, at least in the US and the EU. Higher milk volumes domestically and in the EU will likely keep cheese volumes strong and global export competition active. Thus, the significant question hovering over early 2016 is whether markets will continue to absorb volumes of cheese without prices being adversely affected. Wholesale prices delivered, dollars per/lb: Brick/Muens 5# Loaf: $1.8575 - $2.2825 Monterey Jack 10#: $1.8325 - $2.0375 Mozzarella 5-6# (LMPS): $1.6575 - $2.5975 Process 5# Loaf: Cheddar 40# Block: Blue 5# Loaf: Grade A Swiss 6-9#: $1.6000 - $1.9600 $1.5850 - $1.9800 $2.1250 - $3.1125 $2.6875 - $2.8050 WEST - JAN. 13: Cheese production is mostly steady and active. Readily available milk supplies are keeping manufacturers busy. Cut and wrap operators continue to see good retail demand. Requests for Mozzarella and other cheese for pizzas is steady in advance of the Super Bowl and football playoffs. Inventories are long for cheese barrels, and to a lesser extent blocks. Storage availability is becoming an issue in some locations. Cheese production in New Mexico is returning to normal after winter storm Goliath. The impact on area milk production will take a long time to assess. New Mexico cheese plants in the epicenter of the storm are receiving milk from across the region to make up for any shortfalls. Wholesale prices delivered, dollars per/lb: Process 5# Loaf: Cheddar 40# Block: $1.5900 - $2.0350 Cheddar 10# Cuts: Monterey Jack 10#: $1.7800 - $1.9400 Grade A Swiss 6-9#: $1.6150 - $1.8725 $1.7700 - $1.9900 $2.7475 - $3.1775 FOREIGN -TYPE CHEESE - JAN. 13: In the EU, cheese stocks were drawn down to meet end of year 2015 demand. Rebuilding of cheese in aging programs is underway and is nearly complete. Domestic orders within the EU for cheese produced in the EU are near expected levels, but prices are weaker for semi hard cheese. A factor is EU milk production, which is higher than year ago levels. Some of the additional milk has gone to cheese manufacturing and that pattern is expected to continue. Cheese available for export is at levels manufacturers find to be comfortable. Selling prices, delivered, dollars per/lb: Blue: Gorgonzola: Parmesan (Italy): Provolone (Italy): Romano (Cows Milk): Sardo Romano (Argentine): Reggianito (Argentine): Jarlsberg (Brand): Swiss Cuts Switzerland: Swiss Cuts Finnish: Imported $2.6400 - 5.3800 $3.6900 - 5.8900 0 0 0 $2.8500 - 4.9300 $3.2900 - 4.9300 $2.9500 - 6.4500 0 $2.6700- 2.9300 Domestic $2.0525 - 3.5400 $2.5600 - 3.2575 $3.4425 - 5.5325 $2.0950 - 2.3475 $3.2425 - 5.3925 0 0 0 $3.2075- 3.5300 0 WHOLESALE BUTTER MARKETS NATIONAL - JAN. 8: After the New Year’s holiday, butter production is still strong throughout the country. Bottling processing is making cream more available for churning. Butter demand from retailers is seasonally light. In the Central region, there is some concern that Q1 needs were prefilled when prices were lower in December. As a result, new butter sales may lag in early 2016. In the Northeast, moderate shipments of unsalted butter are clearing into international markets. Salted butter loads are clearing into cold storage. NORTHEAST - JAN. 13: Output rates are steady to somewhat higher. For most manufacturers, current production surpasses demand, thus surplus stocks are clearing to inventory. Balancing plant managers note a preference for buying and churning surplus cream instead of selling cream at the current multiples. CENTRAL - JAN. 13: Churn operators report spot cream loads are clearing into the Central region from the east and west coasts, and points in between. Cream Page 11 CHEESE REPORTER sellers report limited interest from Class II end users. Many Central region butter making plants are running full. Current interest from the retail sector is light, while foodservice orders are steady. Orders from bakery operations are light. Despite the mixed interest for current production, churn operators are comfortable with starting to build inventories for Q2 - Q3 needs. WEST - JAN. 13: Western butter production is active, but processors are carefully managing their inventories. Butter stocks are slowly rebuilding following the peak seasonal demand last month. Manufacturers are using internal cream supplies rather than buying additional loads of cream. Furthermore, a few butter makers that had been selling cream are now diverting the cream back into their churns. Although most of the current butter production is focused on bulk, a few manufacturers report an increase of orders for retail print butter. The demand for butter destined for store shelves through the spring holidays is providing some price support within the market. NATIONAL - CONENTIONAL DAIRY PRODUCTS The volume of conventional dairy ads increased 1%, while organic dairy ads decreased by 33% this week. Conventional Greek yogurt in 4- to 6-ounce containers had the largest volume of ads, followed by 48- to 64-ounce containers of ice cream and 8-ounce blocks of cheese. Advertisements for 1-pound butter had the largest percentage increase for both conventional and organic ads, 118% and 71% respectively. The US advertised price for 8-ounce conventional cheese blocks averaged $2.35, up 16 cents from last week, and up 2 cents from a year ago; 8-ounce shred cheese averaged $2.51, up 34 cents from last week, but 3 cents below one year ago. Organic 8-ounce blocks averaged $3.99, while 8-ounce shred cheese averaged $3.55. Advertisements for conventional cheese were unchanged, but organic cheese ads dropped 58% from last week. The price spread between organic and conventional half gallon milk is $1.36. The price spread is the difference between national weighted average prices for organic, $3.57, and conventional, $2.21. Conventional milk ads increased by 1% from last week, while organic ads decreased by 30%. RETAIL PRICES - CONVENTIONAL DAIRY - JANUARY 15 Commodity US NE SE MID SC SW NW Butter 1# 3.57 3.65 3.74 3.00 3.07 2.99 NA Cheese 8 oz block 2.35 2.33 2.43 2.24 2.15 2.30 2.38 Cheese 1# block 3.53 3.95 3.24 3.10 3.51 3.60 NA Cheese 2# block 5.35 NA NA 4.49 NA 5.99 5.26 Cheese 8 oz shred 2.51 2.68 2.54 2.22 2.38 2.39 2.46 Cheese 1# shred 3.13 3.99 2.99 3.10 2.86 20.95 NA Cottage Cheese 1.77 2.13 1.59 1.19 1.65 1.73 2.19 Cream Cheese 1.83 1.71 1.83 1.90 2.12 1.78 1.98 Ice Cream 48-64 oz 3.26 3.08 2.87 3.31 3.80 3.72 3.21 NA Flavored Milk ½ gallon 1.63 Flavored Milk gallon 2.89 NA NA 1.63 NA NA NA NA NA 1.99 NA NA Milk ½ gallon 2.21 2.36 NA 1.60 1.00 NA 2.69 Milk gallon 2.62 2.99 2.50 NA 2.22 2.83 2.50 Sour Cream 16 oz 1.65 1.68 1.56 1.16 1.15 1.85 1.90 Yogurt (Greek) 4-6 oz .93 .98 .98 .84 .97 .84 .91 Yogurt (Greek) 32 oz 4.13 4.11 4.77 4.11 NA 4.99 NA Yogurt 4-6 oz .49 .49 51 .49 .42 .50 .50 Yogurt 32 oz 2.05 2.28 1.99 2.28 2.14 NA 2.50 US: National Northeast (NE): CT, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VT; Southeast (SE): AL, FL, GA, MD, NC, SC, TN, VA, WV; Midwest (MID): IA, IL, IN, KY, MI, MN, ND, NE, OH, SD, WI; South Central (SC): AK, CO, KS, LA, MO, NM, OK, TX; Southwest (SW): AZ, CA, NV, UT; Northwest (NW): ID, MT, OR, WA, WY ORGANIC DAIRY - RETAIL OVERVIEW National Weighted Retail Avg Price: Cheese 8 oz shred: $3.55 Cheese 8 oz block: $3.99 Cheese 1 lb shred: NA Butter 1 lb: $5.16 Sour Cream 16 oz: NA Milk 8 oz UHT: Milk ½ gal: Milk 1 gal: Greek Yogurt 4-6 oz: Yogurt 4-6 oz: Yogurt 32 oz: $0.96 $3.57 $6.99 $1.33 $1.50 $2.49 DRY DAIRY PRODUCTS - JANUARY 14 NDM - CENTRAL: The Central region low/medium heat NDM range price series widened as prices adjusted to various indices and current buyer interest. The mostly series is unchanged to lower. Buyer interest is light. Sellers indicate buyers are focusing on price more strongly than date of manufacture or packaging in some instances. The market has yet to supply a need for buyers to get ahead of a steady upward price trend, thus buyers are content to shop from week to week. Production of low/medium heat NDM is active throughout the region. With seasonally light interest in condensed skim from the Class II market sector, this is leaving condensed skim volumes in balancing plants that must clear through the dryers. Low/medium heat NDM production is active. Manufacturers’ inventories are growing as demand is lighter than weekly production. High heat NDM prices are steady on light trading. Bakery accounts have yet to pull on high heat NDM inventories for the spring baking season. Even pallet-size demand is light. High heat NDM production is limited to occasional runs, as contract needs demand. NDM - EAST: Low/medium heat nonfat dry milk prices are mixed. NDM production continues to be active. Producers’ low/ medium NDM stocks are growing, as moderate trading takes place. Contracts are satisfied on time, with spot purchases being made primarily on a hand-to-mouth basis and/or less than truck load basis. In gen- eral, buyer transactions are limited as the NDM settles. Prices for high heat nonfat dry milk in the East are unchanged. A decrease in manufacturing milk supplies generated an opportunity for production of high heat NDM at several regional balancing plants this week. Supplies are tight. Buyer interest from bakeries has declined. WEST - NDM: Prices for low/medium heat NDM are mixed. The strong demand for bottled milk is pulling away moderate manufacturing milk volumes from dryers. As a result, NDM production is slightly lower, compared to the previous week. Inventories are mixed. Some processors note a little tightness of NDM inventories. On the other hand, some industry participants note adequate to heavy supplies levels. Spot sales for cheese fortification are active. The market undertone is unsettled. Prices for high heat nonfat dry prices are unchanged. Spot sales to the bakery sector are less active. Some manufacturers are producing more actively to replenish inventories ahead of filling orders for contract based customers. DRY WHOLE MILK - NATIONAL: The price range for dry whole milk is wider this week. Some producers are clearing inventories at lower f.o.b. spot prices, reflected on the bottom of the range. On the other hand, some manufacturers are selling at higher prices, pushing up the top price of the range. WEEKLY COLD STORAGE HOLDINGS SELECTED STORAGE CENTERS IN 1,000 POUNDS - INCLUDING GOVERNMENT DATE ...................................... BUTTER 1/11/16 1/01/16 Change ...................................... ...................................... ...................................... 9,648 7,658 1,990 CHEESE 92,896 94,970 -1,074 Page 12 January 15, 2016 CHEESE REPORTER CME CASH PRICES - JANUARY 11 - 15, 2016 Visit www.cheesereporter.com for daily prices CHEDDAR 500-LB. BARRELS CHEDDAR 40-LB. BLOCKS AA BUTTER GRADE A NFDM MONDAY January 11 $1.5350 (-½) $1.4600 (NC) $2.0350 (NC) $0.7325 (NC) TUESDAY January 12 WEDNESDAY January 13 $1.5225 (-1¼) $1.5200 (-¼) $1.4900 (+3) $1.4950 (+½) $2.0350 (NC) $2.1000 (+6½) $0.7350 (+¼) $0.7425 (+¾) THURSDAY January 14 $1.5200 (NC) $1.4950 (NC) $2.1525 (+5¼) $0.7425 (NC) FRIDAY January 15 $1.5250 (+½) $1.4950 (NC) $2.2500 (+9¾) $0.7500 (+¾) Week’s AVG Change $1.5245 (+0.0215) $1.4870 (+0.0085) $2.1145 (+0.0775) $0.7405 (-0.0035) Last Week’s AVG $1.5030 $1.4785 $2.0370 $0.7440 2014 AVG Same Week $1.5085 $1.5180 $1.5450 $0.9615 MARKET OPINION - CHEESE REPORTER Cheese Comment: Monday’s block market activity was limited to an unfilled bid for 1 car at $1.4600, which left the price unchanged. On Tuesday, the only block market activity was an unfilled bid for 1 car at $1.4900, which raised the price. Two cars of blocks were sold Wednesday, both on bids, the first at $1.4925 and the last at $1.4950, which raised the price. On Thursday, 1 car of blocks was sold on an offer at $1.4950, which left the price unchanged. Friday’s block market activity was limited to an uncovered offer of 1 car at $1.5000, which left the price unchanged. The barrel price decreased Monday on an offer-based sale of 1 car at $1.5350, fell Tuesday on an uncovered offer of 1 car at $1.5225, declined Wednesday on an uncovered offer of 1 car at $1.5200, and rose Friday on an unfilled bid for 1 car at $1.5250. Butter Comment: The butter price jumped Wednesday on offer-based sales of 4 cars at $2.1000, rose Thursday on an unfilled bid for 1 car at $2.1525, and jumped Friday on an offer-based sale of 1 car at $2.2500. NDM Comment: The nonfat dry milk price increased Tuesday on an unfilled bid for 1 car at 73.5 cents, rose Wednesday on a bid-based sale of 1 car at 74.25 cents, and increased Friday on sales of 2 cars at 75.0 cents. WHEY MARKETS - JANUARY 11 - 15, 2016 RELEASE DATE - JANUARY 14, 2016 Animal Feed Whey—Central: Milk Replacer: .1425(+2¼) – .1900 (+1) Buttermilk Powder: Central & East: .7800 (NC) – .8725 (-1¼) Mostly: .8200 (-1) – .8400 (-2) Casein: Rennet: Kraft Receives Patent For Processed Cheese-Type Products Prepared Without Emulsifying Salts Washington—The US Patent and Trademark Office (USPTO) this week awarded a patent for an invention directed to process cheese-type products prepared without significant levels of emulsifying salts. Inventors are Gary Francis Smith and Edwin Gerardo Rivera. The patent was assigned to Kraft Foods Group Brands LLC. The invention summary describes a process cheese-type product comprising natural cheese and a calcium reduced casein source, wherein the process cheesetype product does not contain significant levels of emulsifying salts. For purposes of this invention, “significant levels” of emulsifying salts are generally above about 0.5 percent. Generally, the process cheesetype product contains natural cheese with about 2.5 to 25 percent (solid basis) calcium reduced casein source. Generally, the process cheese-type products of this invention will have an overall moisture level of about 35 to 60 percent. Preferably, the cheese product comprises natural cheese in the range of about 20 to about 87 percent, a source of whey protein in the range of about 0 to about 20 percent (solid basis), and a calcium reduced casein source in the range of about 0.8 to about 25 percent (solid basis). The relative amounts of natural cheese and water will vary depending on the type of cheese product desired. For example, cheese slicetype products will generally have higher levels of natural cheese and lower moisture contents as compared to cheese spread-type products (generally, lower levels of natural cheese and higher levels of moisture). There are numerous advantages to this invention, according to a detailed description of the invention. For example, the process described in the patent yields cheese products having desirable organoleptic properties such as good meltability, smooth texture, and a wide spectrum of possible cheese flavors, including natural cheese flavors, which has been unattainable by prior methods of making process cheese without the addition of emulsifying sales or only with excessive costs. Also this week, the USPTO awarded a patent for an invention that provides a dairy-based food component that includes high levels of lactose in moisture, but still retains a smooth and creamy consistency. Inventors are Gary Francis Smith, Andrew Thomas Mackey and Amanda Jane Criezis. The patent was awarded to Kraft Foods Group Brands LLC. West: .8000 (-2) – .8700 (-½) Engineer, Design, Automate, Create & Serve $2.7800 (NC) – $3.3500 (NC) Acid: $2.7300 (NC) - $3.5000 (NC) Dry Whey Powder—Central (Edible): Nonhygroscopic: .1900 (+1) – .2800(NC) Mostly: .2000 (+1) – .2500(NC) Dry Whey–West (Edible): Nonhygroscopic: .2200 (+1) – .3100 (NC) Mostly: .2200 (NC) – .2600 (NC) Dry Whey—NE: .2300 (+1) — .2775 (NC) CA LL TO DA Y Quality Custom 1.8 0 inside.sales@kossindustrial.com kossindustrial.com Lactose—Central and West: Edible: .1400 (-1) –.2650(NC) Mostly: .1800 (NC) – .2300 (+1) 0.8 4 4.6 26 1 Nonfat Dry Milk —Central & East: Low/Medium Heat: .7700(-1½) – .8775(+¾) Mostly: .8100(-1) – .8500 (NC) High Heat: .9000 (NC) - 1.1500(NC) Nonfat Dry Milk —Western: Low/Medium Heat: .6775(-1) – .8300 (+2) Mostly: .7200 (-1¼) –.7625(+1) High Heat: .8400(NC) – 1.1000(NC) California Weighted Average NFDM: January 8 January 1 $0.8041 $0.7872 5,443,499 7,228,110 Whey Protein Concentrate—Central and West: Edible 34% Protein: .4900 (NC) – .6800 (NC) Mostly: .4900 (NC) – .5800(+1) Whole Milk—National: .9500 (-29) – 1.4700 (+2) Visit www.cheesereporter.com forPMweekly Cheese Reporter Ad.pdf 1 2/25/15 5:07 & historic cheese, butter, NFDM and whey prices Need Grinders? Cookers? Custom Solutions provide Limitless Possibilities we Modify our Models to suit YOU! C M Y CM Production Lines Custom Design & Fabrication to Complement Your Process Watch us Automation From Stand-Alone Equipment to Plant-Wide Integration on YouTube MY Find us online CY CMY K www.KOSSindustrial.com | Green Bay, WI | 1.800.844.6261 For more information, circle #35 on the Reader Response Card on p.10