March 18, 2016 - Cheese Reporter

Transcription

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CHEESE REPORTER
Vol. 140, No. 39 • Friday, March 18, 2016 • Madison, Wisconsin
Senate Defeats Biotech Labeling
Bill; Roberts Vows To Keep Trying
Walmart To Build New
250,000-Square-Foot
Milk Processing Plant In
Fort Wayne, IN
Both Proponents, Foes
Of Voluntary Labeling
Want Federal Solution
Fort Wayne, IN—Walmart, the
largest US grocer, today announced
plans to establish a fluid milk processing plant in Fort Wayne, IN.
Construction is expected to
begin this summer on a more than
250,000-square-foot milk processing plant, which is expected to be
one of the largest in the industry.
Walmart said the plant will
leverage the latest technologies to
produce Great Value and Member’s Mark white and chocolate
milk for more than 600 Walmart
stores and Sam’s Club locations in
Indiana, Illinois, Michigan, Ohio
and northern Kentucky. Walmart
estimates that milk processing at
the new facility will begin in the
summer of 2017.
“By operating our own plant
and working directly with the
dairy supply chain in the Midwest,
we’ll further reduce operating costs
and pass those savings on to our
customers so that they can save
money,” said Tony Airoso, senior
vice president of sourcing strategy
for Walmart US.
“This facility is an example of
how we are always finding efficiencies within the supply chain
to deliver everyday low prices and
high quality groceries,” Airoso
added.
Walmart’s announcement
comes on the heels of Indiana’s
2015 dairy strategy, commissioned
by the Indiana State Department
of Agriculture (ISDA), to grow the
state’s dairy industry by increasing
Washington—The US Senate
on Wednesday failed to invoke
cloture on the Biotechnology
Labeling Solutions Bill, which is
authored by US Sen. Pat Roberts
(R-KS), chairman of the Senate
Agriculture Committee.
Roberts himself, and supporters of his legislation, including
the Coalition for Safe Affordable
Food, vowed to continue working for a solution to the biotechnology labeling issue in the near
future.
In early March, the Senate Ag
Committee passed a bill that would
have created a voluntary national
standard for biotechnology (GMO)
labeling claims on foods. Roberts
said he heard concerns that a voluntary-only standard would not
provide consumers with enough
information, so “we worked out a
compromise to address these concerns by providing an incentive for
the marketplace to provide more
information.”
In Effort To Support
Dairy Farmers, EU Hikes
Intervention Ceilings,
OKs Voluntary Milk
Supply Management
Brussels, Belgium—The European Commission on Monday
announced an additional package of measures to support European Union (EU) dairy and other
farmers while safeguarding the EU
internal market.
Among other things, the Commission will activate, for a limited
period of time, the possibility to
enable producer organizations,
interbranch organizations and
cooperatives in the dairy sector to
establish voluntary agreements on
their production and supply.
This is the so-called Article 222
from the Common Market Organization (CMO), which is specific to
• See EU Dairy Measures, p. 6
Under his proposal that failed
to win approval from the full Senate, a mandatory labeling program
would go into effect only if the
voluntary program did not provide significant information after
several years. The marketplace
would then have had adequate
time to adjust and utilize a variety of options to disclose information about ingredients, Roberts
explained.
“If we do not act, everyone loses.
I have acted to provide a responsible, enforceable, scientific and proactive approach to arm consumers
with the information they want
to make informed choices about
what to put on the dinner table,”
Roberts commented. “I remain at
the ready to work on a solution
to a critical problem that will face
every American every day.”
Despite Wednesday’s vote, “we
believe a bipartisan federal policy
is within reach, based on discussions with Senate offices in the
last few days. We are committed
to working to bridge differences
and get a compromise agreement
through the Senate,” said Jim
Mulhern, president and CEO of
National Milk Producers Federation (NMPF).
“Passage of a coherent food label
disclosure law by Congress is the
only logical approach in order to
avoid the chaotic mess that would
arise from leaving this issue up to
the whims of 50 different states.”
Zippy Duvall, president of the
American Farm Bureau Federation, said it was “inexcusable” that
the Senate vote on the Roberts
legislation fell short. Roger Johnson, president of National Farmers Union, said any compromise
agreement reached by Congress
“should not limit the freedom of
agricultural producers and processors to accurately advertise, label
and promote products as nongenetically altered.”
“Despite the outcome today,
this issue and the need to resolve
it will not go away,” said Chuck
Conner, president of the National
Council of Farmer Cooperatives.
“There continues to be ongoing
discussions with senators from
both sides of the aisle on finding
a compromise that can achieve
broad-based Senate support.
• See Biotech Labeling, p. 4
EU Cheese Production, Exports To Grow In
2016, But Exports Won’t Reach 2013 Levels
Washington—Structural change
in US milk production, along
with changes in dairy product
markets, have contributed to
increased dairy price volatility
in recent years and also have
affected the design and impacts
of dairy policy, according to a
new study.
Changing Structure, Financial
Risks, and Government Policy for
the US Dairy Industry, released
earlier this month by USDA’s
Economic Research (ERS),
focuses on the four interrelated
issues of structural change,
changes in product markets,
price risks, and dairy policy.
Structural change encompasses changes in farm size, farm
ownership and organization, the
location of production, and farming practices.
Two decades ago, most milk
came from farms with fewer
than 150 cows, on which a farm
family handled milking, herd
management, and crop production for feed, the report noted.
Today, most milk comes from
farms with more than 900 cows;
while most of these farms are
owned and operated by a family, most of the labor is provided
by hired workers and many farms
purchase most or all of their feed.
Costs are a driving force behind
structural change, the report said.
The largest farms earn substantially higher net returns per hundredweight of milk produced,
and they have strong incentives
to expand.
Over time, as farms expand
and realize lower costs, they also
expand industry production.
Increases in production reduce
• See Structural Change, p. 10
• See Walmart Milk Plant, p. 7
Average Cheddar Price
Retail vs. CME 40-pound Block
February: 2007 - 2016
Price per pound
Retail
CME
$5.65
$5.15
$4.65
$4.15
$3.65
$3.15
$2.65
$2.15
$1.65
$1.15
07 08 09 10 11 12 13 14 15 16
Page 2
March 18, 2016
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EDITORIAL COMMENT
DICK GROVES
Publisher / Editor
Cheese Reporter
e: dgroves@cheesereporter.com
tw: @cheesereporter
One other factor potentially limiting the growth of plant based dairy
alternatives is taste. Maybe the sum
of these products is greater than the
parts, but most of them don’t exactly
conjure up thoughts of gourmet, specialty or even average.
The Potential, And Limits, Of Plant-Based ‘Dairy’ Products
Last week (as we reported in a story
on page 19 of last week’s issue),
23 food companies announced the
launch of the Plant Based Foods
Association, which is described as
the first trade group to represent
the $3.5 billion plant-based foods
sector.
This development has led us
to ponder both the potential, and
the potential limits, of plant-based
versions of foods such as cheese,
milk, yogurt, butter and ice cream.
So what’s the potential for these
foods? Just for starters, it’s usually a
sign of future growth just when a
group of companies forms a trade
association. The Plant Based Foods
Association plans to educate the
public about the benefits of moving toward a plant-based diet, and
advocate for policies that encourage shifting toward a plant-based
diet, both of which should help
grow the industry in the future.
As far as actual sales are concerned, as noted above, the plantbased foods sector is currently a
$3.5 billion “niche,” and growing. The association itself uses the
phrase “fast-growing” to describe
the plant-based foods sector, and
there’s no doubt some truth to
that, given that many of the association’s charter members didn’t
exist at the turn of the century.
It’s also notable that the association says plant-based milks, at $2.1
billion, are driving the category’s
growth, having enjoyed 14.4 percent growth in total sales volume
over the last two years. Considering what fluid milk sales have been
doing in recent decades (declining
in bad years, stable in good years),
the sales growth for plant-based
milks is pretty impressive.
The association also describes
the plant-based foods sector as an
industry that “supports consumer
health and the environment,” and
we have no doubt that those are
two areas that will drive growth of
these foods in the future.
As far as consumer health is
concerned, estimates vary, but
in all likelihood there are several
million consumers in the US who
consider themselves vegans (and
310 million or more who don’t).
Why do consumers go vegan?
According to The Vegan Society,
there are three key reasons: preventing the exploitation of animals, for the health benefits, and
for the environment.
Looking more closely at each
of those reasons, regarding animal welfare, it’s probably safe to
say that the number of consumers who consider themselves vegans increases every time there’s a
story about alleged animal abuse
on a dairy farm. Such stories don’t
occur all that often, but they don’t
have to, to prompt more consumers to question their consumption
of dairy products.
The health benefits angle sort of
depends on your perspective. The
butter industry suffered for decades
as everybody from the federal government to health organizations
touted the benefits of margarine
(the main ingredient of which is
partially hydrogenated vegetable
oil) over butter.
Now the pendulum is swinging back, and indeed it’s difficult
if not impossible to find anybody
with anything positive to say
about stick margarine. And there’s
a fair amount of research about
the health benefits of milkfat in
the diet, as well as the detrimental impacts of eliminating milkfat
from the diet.
As far as environmental benefits of plant-based foods are concerned, we’re not really convinced
that these products are actually
better for the environment than
animal-based foods. For example,
Melt Organic’s spreads contain
coconut oil sourced from Sri Lanka
and palm fruit oil sourced from
Colombia.
It’s hard to believe that this
product is more sustainably produced than butter is.
Speaking of ingredients, the
lengthy list of ingredients in some
of these plant-based dairy alternatives would appear to be one of factors that will limit their growth in
the future. Survey after survey has
found that consumers are looking
for “simple” foods, that is, foods
with short ingredient lists and
ingredients that they can actually
pronounce. But at least some of
these plant based dairy alternatives are pretty much the complete
opposite of what these consumers
are seeking.
For example, Medium Cheddar Style Farmhouse Block from
Daiya Foods contains, among its
roughly 17 ingredients, such things
as tapioca starch, pea protein isolate, xanthan gum, tricalcium
phosphate, tricalcium citrate and
pea starch. Meanwhile, regular
medium Cheddar contains milk,
cheese cultures, salt, enzymes and
possibly annatto; or maybe just
milk, salt and enzymes (depending
on the brand).
One of dairy’s simplest products,
half and half, contains only milk
and cream, but Dairy-Free Creamer
from Nutpods contains not only
coconut cream and almonds but
also acacia gum, gellan gum, sunflower lecithin and dipotassium
phosphate.
Interestingly, many of these
plant based dairy alternatives tout
what they’re free from: the aforementioned Dairy-Free Creamer
from Nutpods, for example, is
free from dairy, soy, gluten, carrageenan, high-fructose corn syrup,
refined sugars and sugar alcohols.
But it still includes nine ingredients, which is seven more than
dairy half and half.
One other factor potentially
limiting the growth of plant based
dairy alternatives is taste. Maybe
the sum of these products is greater
than the parts, but most of them
don’t exactly conjure up thoughts
of gourmet, specialty or even average. They simply sound unappetizing, although anything is possible
given today’s scientific advances.
Plant-based foods now have
their own trade association, which
is usually a sign of future growth.
Time will tell what sort of growth
these foods have, given both their
perceived benefits as well as their
very real shortcomings.
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March 18, 2016
CHEESE REPORTER
Australia’s Murray Goulburn Signs Pacts With
Nutrition Firms, Will Build New Powder Plant
Southbank, Victoria, Australia—
Murray Goulburn Cooperative
(MG) this week announced that
it has entered into a framework
agreement to establish a strategic
supply alliance with leading global
pediatric nutrition company Mead
Johnson Nutrition (MJN).
Separately, and also this week,
MG announced that it has secured
a long-term nutritionals supply
agreement with Indonesian consumer health and infant nutrition
company, Kalbe Nutritionals.
The two agreements mean that
MG is now in a position to proceed
with its plans to build a new stateof-the-art nutritional powders
plant at Koroit in western Victoria, Australia. The Koroit facility
is the largest production facility in
MG’s portfolio, with an intake of
close to 1 billion liters of milk per
annum for the production of skim
and whole milk powders, as well as
a range of dairy products including
cheese, butter, cream and infant
formula.
The signed framework agreement with MJN sets out key terms
of a long-term offtake arrangement under which MJN will commit to acquire certain volumes of
nutritional powders from MG on
an annual basis. The two parties
will now proceed to formalize the
detailed terms of the supply agreement.
MG said the collaboration
will enable the two companies to
capitalize on their complementary
strengths: MG’s dairy foods and
nutritional powders expertise and
MJN’s excellence in infant and
young child nutrition.
Once final terms are formalized, MG will invest $260 to $300
million at Koroit to construct and
commission its new nutritional
powders facility, while MJN will
co-locate a nutritional packaging
plant on the site.
Once completed, the parties
envisage the facilities supplying
finished products for sale within
the Asia Pacific region, including
China.
The nutritional powders investment at Koroit is a key enabler of
MG’s strategy to shift to more stable and higher value-added dairy
products.
At $260 to $300 million, MG
believes it represents the largest
investment in nutritional powder
capacity and capability made in
Australia for a decade.
MG will continue to review
the optimal configuration for
the nutritional powders investment over the coming months
to deliver both MG’s and its customers’ product specifications
and demand forecasts. It is now
likely that a configuration of two
45,000-tons-per-annum dryers is
the optimal solution to provide
the required operational flexibility and higher specification dryers while still delivering the same
economic return of the originally
planned single 63,000-ton-perannum dryer.
This approach will see the
nutritional powders investment
being delivered in two stages,
with the initial installation of a
45,000-tons-per-annum dryer that
will be increased to up to 90,000
tons per annum as market demand
increases.
“Mead Johnson is pleased to be
working with Murray Goulburn
and to be adding additional flexibility and high-quality capacity
to our global supply chain,” said
Kasper Jakobsen, MJN’s chief
executive officer. “We look forward to developing the relationship further in the future for the
benefit of consumers across the
Asia Pacific region.”
“We are delighted to be partnering with Mead Johnson Nutrition, a recognized world leader
when it comes to pediatric nutrition to supply the very best Australian-made nutritional powder,”
said Gary Helou, MG’s managing
director. “MG will now move for-
ward with the plans to construct
the nutritional powders plant at
Koroit to initially provide a further
45,000 tons of capacity. This will
be utilized to supply infant formula
under our own brand, Devondale
Natra Start, as well as our partners’
market-leading brands.”
Kalbe Nutritionals manufactures and distributes pharmaceuticals, energy drinks and nutritional
products for sale in Indonesia and
Asia.
It also operates a distribution
and logistics division which covers all 33 Indonesian provinces and
reaches approximately 1 million
outlets throughout the country.
The new nutritional supply
agreement between Kalbe and
MG builds on an existing supply
partnership which has seen MG
supply dairy powders for use in Kalbe’s range of nutritional products,
including infant and child nutrition brands.
Under the new long-term supply agreement, Murray Goulburn
Cooperative has committed to
supply and Kalbe has committed
to purchase significant minimum
annual volumes over time.
Helou called Indonesia an
“important Asian growth market
for dairy foods,” with “one of Asia’s
largest pediatric populations.”
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For more information, circle #1 on the Reader Response Card on p. 14
Page 3
Page 4
March 18, 2016
CHEESE REPORTER
Biotech Labeling
(Continued from p. 1)
“We remain committed to finding a path forward on this issue
when Congress returns after Easter
recess,” Conner added.
The Roberts bill was opposed
by, among others, US Sen. Debbie
Stabenow (D-MI), the top Democrat on the Senate Ag Committee.
“Unfortunately, the Roberts
proposal is nothing more than
the status quo for consumers who
want information about the food
they are purchasing. I believe that
if the federal government is going
to take away states rights, we have
the obligation to create a national
system of disclosure that provides
information to consumers in an
easily accessible way,” Stabenow
said. “It’s time to provide certainty
to our food manufacturers and end
this contentious debate by simply
creating a national policy for commonsense disclosure of genetically
modified ingredients.”
Consumers Union, the policy
and advocacy division of Consumer Reports, praised senators for
voting against the Roberts bill, and
urged lawmakers to move towards
mandatory, national labeling.
One day before the Senate’s
vote on the Roberts bill, Consumers Union had urged the Senate
to defeat the measure. In a letter
to Senate members, Consumers
Union spelled out several concerns
with the Roberts bill.
First, it would preempt state
laws “without meaningfully replacing them,” Consumers Union said.
Legislators in four states, including
Vermont, have voted to require
a “modest label” for foods with
genetically engineered (GE) ingredients.
The Roberts bill “would completely disregard citizens’ wishes by
invalidating these laws and prohibiting state legislators from ever
requiring labeling for GE food,”
Consumers Union said.
Second, the bill would create a
new, duplicative voluntary disclosure program at the US Department of Agriculture (USDA).
Voluntary GE food labeling has
already existed for 15 years as the
policy of the US Food and Drug
Administration (FDA), “where it
has only served to foster consumer
confusion and has almost never
been used by food producers.”
Third, the bill only provides
for voluntary disclosure of GE
food to become mandatory under
“extremely unlikely circumstances.” Under the Roberts bill,
USDA must require mandatory
GE food labeling only if less than
70 percent of labeled foods are
not in “substantial participation”
with voluntary GE disclosures after
three years.
“Almost one-third of all covered food products could have no
disclosure of GE ingredients whatsoever, and nothing would be done
to remedy the situation,” Consumers Union said.
“Further, this benchmark could
be met not only through product
labeling, but also more opaque
methods, such as by placing information on a website or making it
accessible through a call center, all
of which would be difficult for a
busy supermarket shopper to access
in real time while making decisions about purchases,” Consumers
Union said.
The chances of the voluntary
program providing meaningful disclosure, or ever leading to mandatory labeling, are slim,” Consumers
Union stated.
Instead of passing the Roberts
bill, Consumers Union called on
the Senate to pass the Biotechnol-
ogy Food Labeling Uniformity Act,
which was recently introduced by
US Sens. Jeff Merkley (D-OR),
Patrick Leahy (D-VT), Jon Tester (D-MT) and Dianne Feinstein
(D-CA).
That bill would require food
and beverage manufacturers to disclose the presence of genetically
modified (GM) ingredients on the
Nutrition Facts panel of packaged
food and beverage products in one
of four ways:
 Use a parenthesis following
the relevant ingredient to indicate
that this ingredient is “Genetically
Engineered.”
 Identify GM ingredients with
an asterisk and provide an explanation at the bottom of the ingredients list.
 Apply a catch-all statement
at the end of the ingredient list
stating that the product was “produced with genetic engineering.
 FDA would have the authority to develop a symbol, in consultation with food manufacturers,
that would clearly and conspicuously disclose the presence of GM
ingredients on packaging.
None of these options would
require front-panel disclosures or
warning statements intended to
disparage GM ingredients.
Merkley called Wednesday’s
vote “a victory for American consumers,” and said he stands “ready
to work with my colleagues to
find a path forward that provides
a national standard with a consumer-friendly solution.”
“This is a significant and hardfought victory for Vermont, but
this fight is not yet over,” Leahy
said. “I hope that now we can all
come together to find a path forward to a strong mandatory disclosure policy that can be applied
across the board and across the
nation.”
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50 YEARS AGO
March 18, 1966: Plain, WI—The
Wisconsin Dairies Cooperative of
Union Center has purchased the
Meister Cheese Factory here this
week. The transaction included
trucks and cheesemaking equipment, but didn’t include the building owned by Stanley Meister.
Marathon City, WI—Oren Lee
Staley, president of the National
Farmers Organization, this week
told members that Wisconsin
farmers shouldn’t oppose the sale
of colored oleomargarine in the
state. If the soybean farmer is getting a good price for his product,
oleo isn’t going to be cheap either,
Staley said.
25 YEARS AGO
March 15, 1991: Madison—
The Wisconsin Board of Agriculture, Trade and Consumer
Protection this week approved
a proposal that will require a
mandatory screening test for
inhibitory substances to be run
on every bulk load of raw milk
received by a state dairy plant
before that load is co-mingled
with any other milk.
Washington—The American
Butter Institute (ABI) recently
formally petitioned FDA to establish, by regulation, a common or
usual name for “Light Butter” containing 52 percent milkfat. On the
principle display panel of the product would also be a comparative
statement expressing the reduction in fat and calories relative to
butter.
10 YEARS AGO
March 17, 2006: Omaha,
NE—ConAgra Foods, Inc. this
week announced plans to divest
its Swissrose International
domestic and imported cheese
business as one of several actions
designed to improve long-term
operating performance. Swissrose is headquartered in Moonachie, NJ, and has a plant in
Mayville, WI.
Washington—The Association of
Dairy Cooperatives in the Northeast recently petitioned USDA to
hold a hearing on proposals for a
transportation credit fund for the
Northeast federal milk marketing
order to cover a portion of farm-toplant transportation costs not currently covered under the order for
milk for Class I uses. The transportation credit fund would be funded
by a “modest surcharge” on Class I
milk, the co-ops noted.
March 18, 2016
Global Dairy Trade Price Index Falls 2.9%; Only
Lactose, Buttermilk Powder Prices Increase
At End Of First Quarter, GDT
Price Index Was 14% Lower
Than At End Of 2015’s
Fourth Quarter
Auckland, New Zealand—The
price index on this week’s semimonthly Global Dairy Trade
(GDT) dairy commodity auction
declined 2.9 percent from the
previous auction, held two weeks
ago.
In this week’s auction, which
featured 134 participating bidders
and 118 winning bidders, prices
were lower for Cheddar cheese,
skim and whole milk powder, butter, anhydrous milkfat and rennet
casein and higher for lactose and
buttermilk powder.
Results from this week’s GDT
trading event, with comparisons to
the trading event held two weeks
ago, were as follows:
Cheddar cheese: The average
winning price was $2,441 per metric ton ($1.11 per pound), down
5.6 percent. That was for Contract
4 (July).
Skim milk powder: The average winning price was $1,731 per
ton (78.5 cents per pound), down
2.5 percent. Average winning
prices were: Contract 1 (April),
$1,690 per ton, up 1.2 percent;
Contract 2 (May), $1,732 per
ton, down 2 percent; Contract 3
(June), $1,726 per ton, down 3.7
percent; Contract 4, $1,715 per
ton, down 2.7 percent; Contract
5 (August), $1,745 per ton, down
2 percent; and Contract 6 (September), $1,765 per ton, down 2.6
percent.
Whole milk powder: The average winning price was $1,971 per
ton (89.4 cents per pound), down
0.8 percent. Average winning
prices were: Contract 2, $1,944
per ton, down 1 percent; Contract 3, $1,940 per ton, down 1.7
percent; Contract 4, $2,024 per
ton, up 0.5 percent; Contract 5,
$2,116 per ton, up 0.9 percent;
and Contract 6, $2,135 per ton,
up 3.5 percent.
Butter: The average winning
price was $2,733 per ton ($1.24 per
pound), down 2.8 percent. Average winning prices were: Contract
2, $2,660 per ton, down 5.8 percent; Contract 3, $2,785 per ton,
down 1.2 percent; Contract 4,
$2,765 per ton, down 1.4 percent;
Contract 5, $2,925 per ton, up 3.9
percent; and Contract 6, $2,965
per ton, up 3.5 percent.
Anhydrous milkfat: The average winning price was $3,014 per
ton ($1.37 per pound), down 6.5
percent. Average winning prices
were: Contract 2, $2,920 per ton,
down 9.7 percent; Contract 3,
$2,991 per ton, down 6.1 percent;
Contract 4, $3,154 per ton, down
3.1 percent; Contract 5, $3,256
Page 5
CHEESE REPORTER
per ton, up 0.2 percent; and Contract 6, $3,142 per ton, down 6
percent.
Rennet casein: The average
winning price was $4,083 per
ton ($1.85 per pound), down 7
down 8.3 percent; and Contract
3, $4,221 per ton, down 2.9 percent.
Lactose: The average winning price of lactose at the GDT
was $624 per ton (28.3 cents per
pound), up 0.8 percent. That was
for Contract 2.
Buttermilk powder: The average winning price was $1,545 per
ton (70.1 cents per pound), up 6.4
up 5.8 percent; and Buttermilk
Powder Contract 3, $1,555 per
ton, up 7.6 percent.
The first quarter of this year was
characterized by a consistent drop
in the GDT price index, with five
of the six trading events declining,
according to the “GDT Quarterly”
report, released this week.
At the end of the first quarter,
the index was 14 percent lower
than it was at the end of 2015’s
fourth quarter.
This was 29 percent lower than
the index 12 months ago and at
its lowest level since the first trading event last August, the report
noted.
The average change in the
GDT price index per trading event
over the first quarter was minus 2.5
percent, compared with an average change of minus 0.5 percent
per trading event over the fourth
quarter of 2015.
Price indices for all products
were lower in the first quarter of
2016 compared to the fourth quarter of 2015, other than lactose,
which increased by 16 percent.
The deterioration in price indices between the first quarter of
2016 and the first quarter of 2015
at the Global Dairy Trade ranged
from minus 47.9 percent for rennet
casein to minus 17.3 percent for
anhydrous milkfat.
Whole milk powder, Global
Dairy Trade’s most traded product, was down 28.7 percent on an
annual basis.
During that same period, the
lactose price increased 6 percent.
Over the first quarter of 2016,
skim milk powder and whole
milk powder attracted the highest
number of participating bidders,
115 and 128, respectively. At the
other end of the participating bidder spectrum, lactose attracted the
fewest participating bidders, 22,
followed by buttermilk powder, at
27.
On average over the first quarter, 88 percent of bidders that
placed bids in round 1 won product
in the final round.
First round demand was 31 percent lower in the first quarter of
2016 than in the fourth quarter
of 2015, while supply was down 9
percent in the same timeframe.
For a copy of the report, visit
www.globaldairytrade.info.
Market Administrators
In Northeast, Central,
Mideast Orders Agree On
Pooling Dumped Milk
Boston, MA—Pool handlers in
the Northeast, Central and Mideast federal milk marketing orders
have requested a relaxation of the
pooling requirements for dumped
milk during the spring flush and
summer holiday period due to
anticipated surplus supply conditions, according to Erik F. Rasmussen, market administrator of the
Northeast order.
The market administrators of
those three orders have agreed to a
temporary policy for the pooling of
milk dumped at the farm or other
non-plant locations due to present
surplus milk conditions.
The temporary plant delivery
exception will be for the period of
April 1 through July 15, 2016, for
all three orders.
Producers that take advantage
of this temporary policy must have
been a pool producer for all of their
commercially marketed production
for the months of March through
July of 2016. The milk must be
picked up at the farm, measured
and sampled for payment.
The tanker test will be a
weighted average of the producer
tests.
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Page 6
March 18, 2016
CHEESE REPORTER
EU Dairy Measures
the agricultural sector and can be
applied in case of severe imbalance
in the market.
The Commission has concluded
that the strict conditions for the
application of this article to the
dairy sector are fulfilled in the
current circumstances. This is an
exceptional measure, which must
also safeguard the EU internal
market and was included by legislators in the 2013 Common Agricultural Policy (CAP) reform but
never used before.
Also, the Commission will
increase the quantity ceilings for
skim milk powder and butter put
into intervention from 109,000
tons and 60,000 tons, respectively,
to 218,000 tons and 100,000 tons.
Other measures activated this
week include a temporary increase
in state aid that will allow member countries to provide up to
15,000 euros per farmer per year;
an additional 30 million euros for
promotion for the dairy and pigmeat sectors; and examining the
feasibility of export credit schemes.
“It is now nearly a year since
dairy quotas were abolished after
a period of 30 years,” commented
European Ag Commissioner Phil
Hogan. “Their abolition was
always likely to be followed by a
period of some volatility.”
Due to a number of factors, what
has been seen since quota abolition is a “significant increase” in
production in a number of EU
member countries which, when
taken with the global changes in
supply and demand for milk, “has
created a severe market imbalance
which is weighing heavily on the
market,” Hogan said.
The EU is continuing its efforts
to try to ensure a rapid resumption
of trade with Russia, Hogan said.
Dairy UK has consistently highlighted the important role that
intervention can play in the current dairy crisis, especially during this spring’s peak production
period, noted Dr. David Dobbin,
Dairy UK chairman.
With intervention currently filling up quickly, Hogan’s proposal
to double the intervention ceiling
on skim milk powder and butter
“is very much welcomed,” Dobbin
said. “It is essential that there is an
effective floor in the market and an
outlet for short-term surpluses. This
will help avoid even greater downward pressure on milk prices in the
global over-supply situation.”
The European Milk Board
(EMB) supports voluntary milk
production cuts, but said the measures that were approved this week
are “only half-baked” and have not
been thought through, the EMB
said in a press release.
“It is clear that measures aiming
at increasing intervention volumes
and selectively implemented production cuts will not relieve the
dramatic situation and thus not put
a halt to price slumps,” EMB said.
The measure of voluntary production cuts might be well-intentioned but reveals “significant
shortcomings,” EMB continued.
The problem in this case is that
the regulation of volumes is not
coordinated on a central EU level,
so it cannot relieve the market as
a whole.
Further, it does not foresee a
cap on production volumes for
all producers during the period of
voluntary production custs, so the
positive effect reached through the
reduction of volumes will immediately be counteracted by the
increase in production of other
producers, EMB added.
“If producer organizations and
cooperatives have the choice
whether or not to implement production cuts, their willingness to
participate will vary significantly,”
according to EMB.
“The EU dairy and pigmeat sectors are bleeding. They were hit by
the loss of our main export market
Russia, worth 5.1 billion euros,” said
Martin Merrild, president of Copa.
Copa and Cogeca (European
agricultural cooperatives) welcomed the fact that there has been
some strengthening of the market
tools in the aid package, including a doubling of the intervention
ceilings for skim milk powder and
butter. But they regret that there
was no temporary increase in the
EU intervention price for SMP and
butter to reflect rising production
costs and market realities.
“I am extremely skeptical as to
whether voluntary supply management measures will work in practice, as the European dairy sector
has been competing at global levels
since the reduction of market support measures nearly a decade ago.
Dairy markets are cyclical and it
is to be hoped will turn in time
as we experienced in 2006, 2009
and 2012,” said Martin Keane,
president of the Irish Cooperative
Organization Society (ICOS).
Nestle To Expand Irish
R&D Center In Plant That
Produces Powdered
Milk-Based Products
Askeaton, Ireland—Nestle
recently announced that it will
invest over 25 million euros ($27.8
million) to expand its R & D center in Askeaton, Ireland.
The enhanced facility will be
located at Nestle’s existing plant in
Askeaton, which produces a range
of powdered milk-based products
for infants, young children and
mothers for export to world markets.
The R&D center will focus on
global product innovation for Nestle’s Wyeth Nutrition infant and
maternal business and is anticipated to open in late 2017.
“This center will be a leading
laboratory in food and life sciencies to continue to position Nestle
at the fore of infant and maternal
nutritional product development,”
said Stefan Catsicas, chief technology officer, Nestle Research. “It
will enable our scientists to explore
nutritional opportunities that can
improve the health and wellness of
children’s lives.”
The extended R&D center will
incorporate state-of-the-art laboratories as well as a full pilot-scale
manufacturing line to facilitate
development and testing of new
products from initial concept
through to finished product development.
The project investment is being
supported by Enterprise Ireland,
the government organization
responsible for the development
and growth of Irish enterprises in
world markets.
“This is a strategically important investment for Ireland and is
a huge vote of confidence in the
future of the Irish dairy industry
and the research connectedness in
Ireland,” said Michael Cantwell,
director of the Food Division,
Enterprise Ireland.
“Nestle’s decision to extend its
R&D center at its manufacturing plant at the Askeaton site is
of critical strategic importance
and underpins Nestle’s commitment to its Irish-based operations,”
Cantwell added.
From concept to commissioning RELCO provides
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March 18, 2016
Chobani Planning
Close To $100 Million
Investment To Expand
Idaho Yogurt Plant
Norwich, NY—Chobani, LLC
on Thursday announced a nearly
$100 million incremental investment to expand its manufacturing
facility in Twin Falls, ID.
In addition to expanding its
Twin Falls plant, Chobani said it
is also exploring plans to expand
its original plant in central New
York state.
Chobani had commissioned its
second domestic manufacturing
facility in Twin Falls in 2013. The
company had previously invested
more than $450 million to build
the 1-million-square-foot operation.
Now, Chobani said it is selffunding major expansion initiatives, including:
 Purchase and conversion of
three production lines for Chobani
Flip products, its fastest growing
yogurt platform.
 Purchase of a new production
line and a new bulk production
line for foodservice opportunities
to drive further growth in schools,
hotels, airlines and restaurants.
 Purchase of new equipment
for new adjacent categories like
Chobani Meze Dips and yogurt
drinks.
 Launch of products to new
international markets, including
Mexico and Puerto Rico in the
second quarter of 2016.
“Building the largest yogurt
manufacturing plant in the world
and expanding it three years later
is a really proud moment for us and
an example of how right it was to
pick Idaho as our second home,”
said Hamdi Ulukaya, Chobani’s
chairman and CEO.
“Our success in Idaho and New
Yorki s an example of the power
and strength of US manufacturing,” Ulukaya continued. “To food
companies like ours, it’s a signal of
the momentum of the food movement that we started: better food
for more people.”
Chobani said its share of the
overall yogurt market is 19.3 percent, the highest share in its history. That translates to a 36.1
percent share of overall Greek
yogurt, the company said.
Chobani said it currently
receives up to 4 million pounds of
milk at its Idaho and New York
plants every day.
On the heels of its Chobani
Flip product success, Chobani
recently announced its expansion
and investment beyond the yogurt
aisle with two new products: Chobani Meze Dips, which feature
real vegetables, herbs and spices
blended with Greek yogurt; and
Drink Chobani beverage, which
the company described as an excellent source of portable protein.
Page 7
CHEESE REPORTER
Walmart Milk Plant
the volume of dairy processing and
creating market opportunities for
expanded dairy production.
That 2015 report concluded,
among other things, that approximately 4 million pounds of milk
per day (40 percent of Indiana’s
milk) is exported from the state,
mainly to fluid milk markets in
the East and Southeast; and that
there appears to be an opportunity
to encourage investment in dairy
processing in Indiana for up to 4
million pounds of milk that is currently exported out of the state
(for more details, please see “With
Milk Production Growing, Indiana Looks At Potential Of Large
Cheese Plant In State,” on page 1
of our Mar. 20, 2015 issue).
Indiana’s 2015 milk production
was a record 4.03 billion pounds,
up 3.5 percent from 2014. The
state’s milk production has grown
by more than 1 billion pounds since
2003. The state’s January milk output totaled 352 million pounds, up
2.9 percent from January of 2015.
There were 184,000 milk cows in
Indiana in January, up 3,000 head
from a year earlier.
Fort Wayne, IN, is located
approximately 50 miles from the
Michigan border. Michigan’s milk
production last year totaled 10.3
billion pounds, up 6.7 percent from
2014 and up more than 4 billion
pounds since 2002. Michigan’s
January milk production, 896 million pounds, was up 5.9 percent
from January of 2015.
“This is tremendous news for
Indiana and not only affirms our
dairy strategy is working, but also
that our business climate and geographic location is conducive to
economic development in the
agriculture industry,” said Ted
McKinney, director of the ISDA.
“I applaud Walmart’s decision and
commitment to support Indiana’s
dairy farmers and for growing this
robust, vital industry in our state.”
“I’m proud to welcome this
expansion as we work to create
quality jobs for Hoosiers and support our Indiana farmers,” commented Indiana Governor Mike
Pence.
“When preparation meets
opportunity, good things happen
in the Allen county community,”
said Nelson Peters, Allen county
commissioner. “We are extremely
excited to welcome Walmart here
with this unique project.”
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Page 8
March 18, 2016
CHEESE REPORTER
Few Young People Plan
To Work In Agriculture
Industry, Land O’Lakes
Survey Finds
Minneapolis, MN—A recent survey conducted on behalf of Land
O’Lakes, Inc., found that there’s
a startling lack of young people
planning to work in the agriculture
industry.
In fact, only 3 percent of college
graduates and 9 percent of Millennials surveyed have or would consider a career in agriculture, the
survey found.
When compared with other
industries, survey respondents were
least likely to indicate that they
have or would consider a career
in agriculture (6 percent), with
health care and technology at the
highest career interest (each at 21
percent); followed by education
(20 percent); marketing and sales;
finance; and manufacturing and
engineering (all at 12 percent).
US Department of Agriculture
(USDA) studies underscore these
findings, Land O’Lakes noted:
more than 20,000 agriculture jobs
go unfilled each year.
Despite this fact, the majority
of survey respondents (54 percent)
think it is difficult or very difficult
for recent college graduates to get
a job in agriculture.
“We will need to produce more
food in the next 40 or 50 years
than in the previous 500 years
combined,” said Lydia Botham,
executive director, Land O’Lakes
Foundation. “Our priorities are
clear: we must focus on attracting
the next generation of ag workers to the highly skilled, well-paid
career opportunities. Failing to
do so may lead to severe consequences.”
Some 76 percent of survey
respondents do not think or are
not sure if a career in ag pays well.
However, 35 percent of Milllennials, significantly more than any
other generation, think ag careers
do pay well, which may be a promising sign of attracting college students to the ag industry.
“People still think you have to
wear boots and overalls to work
in ag,” Botham said. “But modern
agriculture has evolved to become
one of the most vital and technologically advanced fields there is
today.”
To attract new college graduates, Land O’Lakes created the
Global Food Challenge — Emerging Leaders for Food Security program to engage future leaders in the
challenges and opportunities facing agriculture. The yearlong fellowship program provides selected
college students the opportunity to
learn about global food security.
WCMA Makes Donations To CDR, Second
Harvest At World Championship Contest
Chris Simon (right in above photo) of Agropur, current president of the Wisconsin Cheese
Makers Association (WCMA), presents Mark Johnson, Ph.D., senior scientist at the Wisconsin Center for Dairy Research, with a check for $15,000 to to help CDR graduate students
complete their education.
Madison—The Wisconsin Cheese
Makers Association (WCMA)
and its members have raised and
donated more than $30,000 to
charitable organizations, as a result
of last week’s Cheese Champion
reception and World Championship Cheese Contest.
At the reception, held on
March 9, WCMA President Chris
Simon presented Wisconsin Center for Dairy Research (CDR)
senior scientist Mark Johnson,
Ph.D., with a check for $15,000
to help CDR graduate students
complete their education.
“The CDR is training the next
generation of dairy researchers,
and in effect, helping to ensure
a strong future for Wisconsin’s
dairy industry,” said Simon who,
in addition to serving as the
WCMA’s president, works as vice
president of quality assurance and
product development at Agropur.
“We are proud to partner with
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CDR in its important work, as we
have done for many, many years.”
At the conclusion of the World
Championship Cheese Contest,
cheese makers also donated more
than 5,000 pounds of cheese,
yogurt and butter to Second
Harvest Foodbank of Southern Wisconsin, a gift valued at
approximately $15,000.
And cheese contest volunteers,
often referred to as the B-Team,
pitched in another $1,000 to Second Harvest’s Adopt-A-DairyCow program, which ensures that
families facing hunger have access
to milk, a rarely donated product.
“Cheese makers are a generous
bunch, and it is no special occasion
for them to support their communities,” said John Umhoefer, the
WCMA’s executive director. “But
special occasions like the Contest
do give us a unique opportunity to
highlight issues, like hunger, and
to make a positive difference.”
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March 18, 2016
Dairy CPI Fell 0.5% In February; Retail Whole
Milk Price Hits Lowest Level Since May 2010
Washington—The Consumer
Price Index (CPI) for dairy and
related products in February was
219.732 (1982-84=100), down
0.5 percent from January and 2.6
percent lower than in February of
2015, the US Bureau of Labor Statistics (BLS) reported Wednesday.
That was the lowest level for the
dairy CPI since last June, when it
was 219.696. The dairy CPI had
reached a record high of 229.87 in
December of 2014.
February’s CPI for all items was
237.111, up 0.1 percent from January and 1 percent higher than in
February of 2015. February’s CPI
for food at home was 242.062, up
slightly from January but 0.3 percent lower than in February of
2015.
The CPI for cheese and related
products in February was 231.437,
down 0.1 percent from January and
down 2.5 percent from February of
2015. The cheese CPI has now
been above 230 for 23 consecutive
months, although it remains well
below the record high of 240.046,
set in November of 2014.
The average retail price for a
pound of natural Cheddar cheese
in February was $5.369, down
more than four cents from January
and down more than 11 cents from
February of 2015.
The average retail price for
a pound of American processed
cheese in February was $4.436, up
more than six cents from January
but down more than 16 cents from
February of 2015.
February’s CPI for whole milk
was 204.434, down 2.2 percent
from January and 6.2 percent lower
than in February of 2015. That was
the lowest level for the whole milk
CPI since March of 2011, when it
was 203.08.
February’s CPI for “milk” was
142.243 (December 1997=100),
down 1 percent from January and
5 percent lower than in February
of 2015. February’s CPI for milk
other than whole was 146.201,
4.2 percent lower than in February
of 2015.
The average retail price for a gallon of whole milk in February was
$3.23, down more than eight cents
from January and down almost 27
cents from February of 2015.
That was the lowest average
retail whole milk price since May
of 2010, when retail whole milk
prices averaged $3.178 per gallon.
Since then, average retail whole
milk prices peaked at almost $3.86
per gallon in November of 2014.
The record for average retail whole
milk prices remains $3.961 per gallon, set back in July of 2008.
Average retail whole milk prices
declined two cents in early March,
to $3.40 per gallon, according to
the monthly survey conducted by
Page 9
CHEESE REPORTER
federal milk marketing order market administrators. They conduct
their survey one day between the
1st and 10th of each month in
29 selected cities or metro areas
located in federal order markets.
One outlet of the largest and second largest food store chains and
the largest convenience store
chain are surveyed.
In the market administrators’
survey, average retail whole milk
prices have declined from $3.49
per gallon in early January to
$3.42 per gallon in early February
and then $3.40 per gallon in early
March.
In early March, average retail
whole milk prices ranged from a
low of $2.39 per gallon in Houston, TX, to a high of $4.22 per gallon in Milwaukee, WI.
In addition to Houston, retail
whole milk prices in early March
averaged under $3.00 per gallon
in seven additional cities: Cincinnati, OH, $2.52 per gallon; Dallas, TX, $2.83 per gallon; Denver,
CO, $2.83 per gallon; Detroit, MI,
$2.76 per gallon; Indianapolis, IN,
$2.96 per gallon; Phoenix, AZ,
$2.69 per gallon; and Wichita, KS,
$2.72 per gallon.
In addition to Milwaukee, retail
whole milk prices in early March
averaged above $4.00 per gallon
in two other cities: Baltimore, MD,
$4.11 per gallon; and Minneapolis,
MN, $4.02 per gallon.
Retail prices for reduced fat (2
percent) milk averaged $3.37 per
gallon in early March in the market administrators’ survey, down
one cent from early February and
down six cents from early January.
Retail prices for whole organic
milk averaged $4.39 per half-gallon
in early March, five cents higher
than in early February, the market administrators’ survey found.
For the organic milk price survey,
one outlet of the largest and second largest food store chains are
surveyed.
In early March, retail prices for
whole organic milk ranged from a
low of $3.34 per half gallon in Louisville, KY, to a high of $5.49 per
half gallon on Pittsburgh, PA.
Retail prices for whole reduced
fat milk also averaged $4.39 per
half gallon in early March, up five
cents from early February.
February’s CPI for butter was
237.277, down 1.5 percent from
January but 1.6 percent higher
than in February of 2015.
The February CPI for ice cream
and related products was 222.532,
1.3 percent lower than in February
of 2015.
February’s CPI for other dairy
and related products was 146.846
(December 1997=100), down 0.4
percent from January and also
down 0.4 percent from February
of 2015.
Page 10
Structural Change
real (inflation-adjusted) product
prices, and ultimately reduce farm
milk prices.
In short, shifts in industry structure that reduce average industry
costs will place downward pressure
on real prices for farm milk. With
lower farm milk prices, highercost producers will come under
increased financial pressure, and
some will close, continuing the
process of structural change.
With lower real product prices,
buyers find more uses for US dairy
products, either in domestic or
foreign markets, and those new
markets become important considerations for producers. Thus,
farm costs, prices, and markets are
linked.
Changes in consumer preferences have led to changes in the
mix of dairy products consumed
domestically. But the US has also
become a substantial commercial
dairy product exporter, following improved international competitiveness of the US industry,
growing global dairy demand, and
changes in trade and dairy policy.
Financial Risks Of Dairy Farming
Expanded dairy trade brings benefits to US producers and consumers, the report said, but it also
creates a new source of price volatility and a new set of financial
risks for producers.
Dairy farmers face “significant
financial risks,” the report pointed
out. Many large dairy farms rely
heavily on debt to finance operations, and when margins are low,
face the risk of not being able to
meet loan obligations out of current operating income.
The volatility of milk prices,
along with the associated financial
risks, has increased over the past
CHEESE REPORTER
35 years, the report noted. As measured with the coefficient of variation (CV), the ratio of the standard
deviation of prices to the mean
value, volatility for the monthly
NASS all-milk price was 3 percent
in 1980-84, 6-7 percent in 1985-89
and 1990-94, 11 percent in 199599, 15 percent in 2000-04, and 20
percent in 2005-09 before falling
back to 15 percent in 2010-14.
Feed prices, which were relatively stable for many years, began
rising after 2005, with notably more
volatility. Feed prices reached new
highs in July of 2008, August of
2012 and May of 2014.
The gap between milk and
feed prices “clearly shows a sharp
margin decline” in the summer of
2009 and another, to under $4.00,
in 2012, the report said. This is
a national-benchmark margin: the
margins faced by specific farms
can vary, sometimes substantially,
depending on differences in prices
paid for feed and prices received
for milk.
But movements in the benchmark margin correlate strongly
with movements in farm-level
measures of financial performance,
and the benchmark is therefore a
useful indicator of dairy financial
performance, the report stated.
Margin Protection Program
Scale economies in dairy farming
provide strong incentives to invest
in large operations for those who
can assemble the needed managerial talent. Shifts of production to
larger dairy farms have contributed
to increased efficiency, lower milk
prices, and sharp increases in net
exports as the US dairy industry’s
global competitiveness improved.
However, milk and feed price
volatility heightens risk for dairy
farmers, as illustrated by the 2009
margin crash. That experience
provided a major impetus for the
redesign of dairy programs in the
2014 farm bill, with an expanded
focus on providing margin protection to all kinds of farms through
the Dairy Margin Protection Program (MPP-Dairy).
MPP-Dairy is a voluntary risk
management program that offers
protection to dairy producers when
the difference between the NASS
all-milk price and a nationalbenchmark feed cost falls below a
threshold, with escalating premiums, selected by the producer. The
program offers a cash payment to
producers when national-average
margins are narrow or negative.
MPP-Dairy is “a large and complex program, and farmers must
make some complicated decisions
when choosing a level of enrollment,” the report said. The program “appears to offer value to
dairy producers,” judging from
initial enrollments accounting for
80 percent of US milk production,
and model simulations suggest that
the protections offered by the program could be more valuable in the
future.
The potential effects of MPPDairy are subject to two major
unknowns, the report noted. The
first concerns the impact of the
program on milk production and
prices, and hence on government
subsidies. If the program reduces
the degree to which milk production responds to changes in
milk prices, then it could lead to
extended periods of low prices and
increased government support.
The second unknown concerns
the effect of the program on continued structural adjustment in
the dairy sector. MPP-Dairy has
not developed complete rules for
handling structural change in the
industry. Without rules for managing structural change, the program
could reduce incentives to increase
herd sizes.
March 18, 2016
Patent Awarded For
Stable Concentrated
Dairy Liquids Having
Enhanced Fresh Dairy
Notes That Stay Stable
Washington—The US Patent and
Trademark Office (USPTO) this
week awarded a patent for heat
stable concentrated dairy liquids
exhibiting enhanced fresh dairy
flavor notes.
Inventors are Gavin Matthew
Schmidt, Jennifer Louise Kimmel, Aaron S. Handrick, Lisa Ann
Dierbach, Kenneth Allen Mikeska,
Bruce Edward Campbell, and
Karen Robinson. The patent was
assigned to Intercontinental Great
Brands LLC.
Disclosed in the patent are stable
concentrated dairy liquids exhibiting enhanced fresh dairy notes and
methods of making them.
In order to achieve the enhanced
fresh dairy notes, one aspect of the
disclosed methods and products
provides a formulation having a
reduced dairy protein level and
an increased fat content obtained
through a specific blend of a creamenriched and concentrated liquid
dairy base.
By one approach, the stable
concentrated dairy liquid has a
protein to fat ratio of about 0.4 to
about 0.7.
In another aspect, the cream
enrichment occurs at selected
input locations during the concentration and thermal process in
order to form a fluid and stable
concentrate.
The resultant concentrates
exhibit a stability for at least about
nine months as evidenced by a
brew recovery of at least about 90
percent, and the resultant concentrates also have reduced sulfur and/
or nitrogen aroma intensities.
While various approaches for
concentrating milk have been
documented, the relatively severe
thermal treatments needed to sufficiently sterilize the concentrated
products produced from the prior
methods can result in flavor profiles that are different than a fresh
dairy product, the patent summary
stated.
As a result, even if prior concentration and sterilization methods result in a heat and shelf-stable
product, the sterilizing process
often results in the formation or
profiles, in some instances, different than fresh milk beverages.
In this case, the formulation and
processing methods disclosed in the
patent achieve a stable fluid dairy
concentrate having enhanced fresh
dairy notes through concentration
to effective protein and fat levels to
reduce and, preferably, eliminate
off-notes due to sterilization, and
through enhancement via selective
cream enrichment to achieve the
flavor notes of fresh dairy products
within a stable product.
March 18, 2016
Puhoi Valley Kawau Blue Tops New
Zealand Champions of Cheese Award
Auckland, New Zealand—Puhoi
Valley Kawau Blue by Puhoi
Valley Cheese won the supreme
title of Countdown Champion of
Champions Cheese Award here
at the recent 2016 New Zealand
Champions of Cheese Awards.
Officially the best cheese made
by large producers, Puhoi Kawau
Blue was described by judges as an
excellent example of a mild-tomedium flavored Blue cheese.
“This has great rind development and superb even blue distribution,” said master judge Russell
Smith. “The texture is creamy with
a great balance of spicy, savory and
sweet flavors.”
Puhoi Kawau Blue is the result
of over 30 years’ experience perfecting Blues by Puhoi head cheese
maker Franck Beaurain, he said.
While Puhoi Kawau Blue is
sold to New Zealand restaurants
through food service, the public
can buy this exact cheese under its
retail name – Puhoi Valley Gorgonzola Style Blue.
Mercer Cheese Extra Mature
Gouda took the Puhoi Valley
Champion Artisan Cheese Award
for smaller producers – its third
consecutive supreme artisan win.
Dutch influence also saw Jeanne
van Kuyk from Aroha Organic
Goat Cheese win the Milk Test NZ
Champion Cheesemaker Award.
Jeanne van Kuyk is the first and
only female artisan cheese maker
to win this award.
Aroha Organic Goat also collected the 180 degrees Champion
Goat Cheese Award for its Aroha
Raw Milk Jubilee.
Not only did judges score this
cheese a perfect 100, the only three
gold medals awarded in this category were given to Aroha Organic
Goat Cheese.
Winners in the contest follow:
Page 11
CHEESE REPORTER
Champion Butter: Westgold
Unsalted, Westland Milk Products
Champion Yogurt: Symbio Probalance Blueberry Whole Grain
Yogurt, Fonterra Brands NZ
Fresh Unripened Cheese
Award: Over the Moon Volcano,
Over the Moon Dairy Company
Champion Feta Award: Origin
Earth Feta, Origin Earth
Champion Soft White Rind:
Brie, Grinning Gecko Cheese Co.
Champion Goat Cheese
Award: Raw Milk Jubilee, Aroha
Organic Goat Company
Champion Sheep Cheese: Mercer Pecorino, Mercer Cheese
Champion Washed Rind: Puhoi
Valley Cellar Range Washed Rind,
Puhoi Valley Cheese
Champion Blue Cheese: Puhoi
Valley Kawau Blue, Puhoi Valley
Champion European Style:
Farmhouse Mature, Crescent Dairy
Goats
Champion Dutch Style: Meyer
Tasty Gouda, Meyer Gouda Cheese
Champion New Cheese:
Matariki, Wangapeka Family Dairy
Aspiring Cheesemaker Award:
Loran Mathis, Over The Moon
Dairy Company
Champion Original Cheese
Award: Pumahana, Karikaas Natural Dairy Products
Champion Flavored Cheese
Award: Origin Earth Smoked
Sheep Cheese, Origin Eart
Champion Cheddar: Kapiti
Tuteremoana, Fonterra Brands NZ
Champion Export: Puhoi Valley Fresh Goat, Puhoi Valley
Favorite Cheese Award: Kapiti
Kahurangi, Fonterra Brands NZ
Champion Cheese Packaging Award: Dairyworks Grated
Cheese Range, Dairyworks
Champion Home Crafted
Cheese and Cheese Maker: Sentry Hill Quark, Phillippa White.
Ireland’s Ornua Opens
Cheese Manufacturing
Facility In Saudi Arabia;
Will Produce Cheese
From Reassembled Milk
Riyadh, Saudi Arabia—Ornua
(formerly the Irish Dairy Board)
has opened a new cheese manufacturing facility in Saudi Arabia’s
capital city, Riyadh.
The 20-million-euro ($22.1
million) facility will manufacture
white cheeses for the Saudi Arabian market, which Ornua said
is the fifth largest dairy importer
in the world, as well as providing
a central hub to access the high
growth dairy markets in the Middle East North Africa (MENA)
region.
The new facility will use technology developed by Ornua and
Teagasc (the agriculture and food
development authority in Ireland)
to produce a range of bespoke fresh
white cheeses for the increasingly
sophisticated bakery sector, retail
delis and foodservice customers.
White cheeses are hugely popular in the MENA region, Ornua
pointed out.
The technology allows milk
ingredients to be recombined for
fresh white cheese production. The
facility also includes an “innovation hub” which will be used to codevelop customized “white cheese”
solutions with customers.
The opening of the new facility “is strategically very important
to Ornua as it provides the business with a new route to market
for Irish dairy,” commented Kevin
Lane, CEO of Ornua. “We now
have a manufacturing and trading
hub in place to service the high
growth dairy market of Saudi Arabia and our growing MENA customer base.
“The ability to innovate and
adapt to market needs is key to
developing opportunities for Irish
dairy,” Lane continued. “Our partnership with Teagasc is a great
example of how innovative dairy
technologies can create new ways
of producing dairy products for
global markets.”
“We are delighted that this
inclusive research and development approach by Ornua and
Teagasc has proved effective,”
commented Mark Fenelon, head
of the Teagasc food research program.
“The technology underpinning this venture was developed
at the Teagasc food research center, Moorepark, and was adapted
and managed by Ornua as part of
a highly integrated collaborative
research program to develop the
current suite of local cheeses,”
Fenelon added. “It marks a new
approach to cheese manufacture involving the production of
cheeses from reassembled milk
without whey expulsion,” Fenelon
continued.
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UST is a revolutionary new line of brooms and brushes with innovative technology that
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SHREDDING/DICING SYSTEMS
specializing in custom automated
food processing equipment
COMPANY NEWS
Page 12
Cheese
CHEESE REPORTER
Reporter Ad.pdf
1
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4:27 PM
March 18, 2016
C
M
Y
SUPPLIER NEWS
www.cheesereporter.com/events.htm
CM
MY
CY
CMY
K
Dairy Membrane Filtration, Concentration
& Separation Course Is April 5-7 In NY
Ithaca, NY—Cornell University is
hosting a Dairy Membrane Filtration, Concentration & Separation
Technology course here April 5-7
at Stocking Hall on campus.
This three-day workshop is
designed for those working in
any area of dairy processing that
involves concentration of milk
and milk products by membranes,
evaporation, drying and centrifugal separation.
The workshop kicks off Tuesday
morning with a session on membrane technology, terminology and
applications led by Cornell’s Carmen Moraru.
Jeff Yeh of Synder Filtration will
lead a session on membrane design,
construction and developments,
followed by R.J. Twiford of Tetra
Pak Processing Equipment, Inc. on
supporting system design and mass
balance used in membrane processing.
K. Saagar Vijayaragavan of
Complete Filtration Resources
GOLF OUTINGS
Charity Cheese Makers
Golf Outing Scheduled
For June 9 In Oneida,
WI At Thornberry
Oneida, WI—The annual Charity Cheese Makers Golf Outing
has been set for Thursday, June
9 at the Thornberry Golf Course.
Once again, proceeds from the
event will be donated to the Children’s Miracle Network. More
information on the outing will be
available in the coming weeks.
For questions, contact Larry Seyferth: lseyferth@johnsonindint.com.
Oregon Dairy Industries
Set Golf Outing Date
Aurora, OR—The Oregon Dairy
Industries association will hold
their 66th Annual Benefit Golf
Tournament at Langdon Farms
Golf Club July 20 in Aurora, OR.
Proceeds benefit the Oregon
State University Bodyfelt Scholarship Endowment Fund. The
price is $185 per person and
includes green fees, golf cart,
awards, lunch and raffle. For information contact Reitha McCabe
at reitha@oregondairy.org.
will cover an analytical approach
to membrane replacement, and
Pall Corporation’s Bob Tyler will
discuss cross-flow and direct filter
technologies used in dairy processing.
The day will conclude with a
session led by Symphonic Water
Solutions’ Tom Probst on membranes in dairy waste water treatment.
Wednesday begins with a session on the membrane care program and audit led by Hydrite
Chemical’s Reda Yacoub, followed
by Cinder Biological’s Steven
Yannone on new enzyme cleaning
technology for membranes.
After breakfast, Cornell’s Carmen Moraru will cover drying
and evaporation principles and
technology, and Carrie O’Neal of
GEA North America will discuss
practical applications of drying and
evaporation.
Lunch is followed by a session on dry cleaning technologies
for dairy led by Leo Bohanon of
Hydrite Chemical Co.
Kansas State University’s Jayendra Amamcharla will give a
presentation on lactose crystallization and its role in concentrated
and dried dairy products, followed
by GEA North America’s Mark
Litchfield on centrifugation technology in clarification, separation
and concentration.
Wednesday will conclude with
a pilot plant demonstration and
reception.
The final day of the workshop
will begin with Cornell’s Alina
Stelick on the sensory analysis of
dairy ingredients, followed by Cornell’s Nicole Martin on the sources
and solutions of bacterial spores in
dairy products. The workshop will
adjourn at noon.
Cost to attend is $700 per person for New York State residents
and $840 for non-residents. Registration is now available online at
www.bit.ly.CornellMembrane.
IDFA Milk & Cultured Dairy Products
Conference Is May 24-25 In Indianapolis
Indianapolis, IN—The 2016
International Dairy Foods Association (IDFA) will hold its Milk
& Cultured Dairy Conference here
May 24-25 at the Omni Severin
Hotel.
The two-day conference is
designed for those who work in
dairy marketing, product development, plant management, quality
assurance, research and development, plant engineering and operations.
The conference begins Tuesday
morning with a welcome address by
IDFA vice president of regulatory
affairs and international standards
John Allan, followed by an update
on the Food Safety Modernization
Act (FSMA) implementation.
The morning session will dive
deep into the latest yogurt category
trends. KJ Burrington with the
University of Wisconsin’s Center
for Dairy Research (CDR) will
discuss dairy ingredients in cultured products for clean labeling,
and Chr. Hansen’s Mirjana CuricBawden will cover the documented
health benefits of probiotics on the
human microbiome.
The trouble with date marketing and how it can be confusing to
consumers and harmful to sustainability will also be addressed.
An update on GMO labeling
regulations will be given by IDFA’s
Emily Lyons, and Donna Berry of
Berry on Dairy will cover what’s
new on the market.
Tuesday will wrap up with the
Innovative Product Contest. Conference attendees are invited to
send one entry per company for
each contest. Awards will be given
for the most innovative milk or
cultured dairy product, and for the
most innovative milk or cultured
dairy prototype product or flavor.
The second day will kick off
with a session on social media and
marketing impact on the consumer
value equation.
Dean Foods’ Roger Hooi will discuss future veterinary drug residue
testing requirements for Grade A
milk products, and Smitha Stansbury, King & Spalding, will lead
a session on FDA food additive
approvals and the GRAS system.
Cost to attend is $945 for IDFA
members, $1,145 for non-members
and $375 for government agents
and members of academia.
To register online, visit www.
idfa.org.
PLANNING GUIDE
April 11-13: International
Dairy Federation Dairy Science & Technology Symposium, Dublin, Ireland. For more
information, visit www.idfingredientsandcheese2016.com.
•
April 12 - 13: Oregon Dairy
Industries 105th Annual Conference, Salem Conference Center, Salem, OR. For more info,
visit www.oregondairy.org/
annual-conference.
•
April 12-14: International
Cheese Technology Expo, Wisconsin Center, Milwaukee, WI.
Visit www.cheeseexpo.org.
•
April 16-19: International Milk
Haulers Association. Visit www.
milkhauler.org.
•
April 24-26: ADPI, ABI Joint
Annual Conference, Hyatt
Regency Chicago, Chicago, IL.
Visit www.adpi.org for more
information.
•
June 5-7: IDDBA Seminar &
Expo, Houston, TX. For information, visit www.iddba.org.
•
June 26-28: Summer Fancy
Food Show, Javits Center, New
York, NY. For details, visit www.
specialtyfood.com.
•
July 11-12: WDPA Dairy Symposium, The Landmark Resort,
Door County, WI. For details,
visit www.wdpa.net.
•
July 16-19: IFT 2016, McCormick Place South, Chicago, IL.
For info, visit www.am-fe.ift.
org.
•
July 27-30: ACS Annual Convention, Iowa Events Center,
Des Moines, IA. For more information, visit www.cheesesociety.org.
July 31-Aug. 3: IAFP Annual
Meeting, America’s Center,
St. Louis, MO. For details, visit
www.foodprotection.org.
•
Aug. 10-11: IMPA Annual Convention, Sun Valley Resort,
Sun Valley, ID. For details, visit
www.impa.us.
d's Dairy In
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March 18, 2016
Page 13
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.
1. Equipment for Sale
3. Cheesecloth
8. Promotion & Placement
FOR SALE: Car load of 300-400-500
late model open top milk tanks. Like
new. (262) 473-3530
GO DIRECT! CHEESECLOTH - All constructions, medical grade. Microfiber and
dairy wipers too. Contact Lucy Bauccio at
Monarch Brands by email lucyb@monarchbrands.com or call 267-238-1643
PROMOTE YOURSELF - By contacting Tom Sloan & Associates. Job
enhancement thru results oriented
professionals. We place cheese makers, production, technical, maintenance,
engineering and sales management
people. Contact Dairy Specialist David
Sloan, Tom Sloan or Terri Sherman.
Tom Sloan & Associates, Inc. PO Box
50, Watertown, WI 53094. Call: (920)
261-8890 or FAX: (920) 261-6357; or
email: tsloan@tsloan.com
2. Equipment Wanted
1. Equipment for Sale
FOR SALE: 7,000 Gallon Coldwall
Tank. 1,500 Gallon Cream Tank. DeLaval 2,300 Gallon Homogenizer. Damrow
8’ Double Row Press with Air Heads.
20 hp Ampco Pump. Walker 5,500 Gallon Silos (2). Call Don at Eaton Equipment. (608) 375-2256.
MSA 200 WESTFALIA SEPARATOR.
Just arrived. Perfect Bowl condition NO PITTING. Two for sale. Call Great
Lakes Separators at (920) 863-3306 or
e-mail drlambert@dialez.net.
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; e-mail drlambert@dialez.
net.
WANTED TO BUY: Westfalia or AlfaLaval separators. Large or small. Old or
new. Top dollar paid. Call Great Lakes
Separators at (920) 863-3306 or email
drlambert@dialez.net
4. Walls, Flooring
ULLMER’S DAIRY EQUIPMENT
is looking to buy used daisy hoops,
midget hoops, A-frame presses, 20 lb
block molds, water/milk silos, homogenizers, and separators. Please contact
us at (920) 822-8266 or e-mail us at
ullmersdairyeqpt@netnet.net.
EXTRUTECH PLASTICS Sanitary POLY
7. Help Wanted
BOARD© panels provide bright white,
non-porous, easily cleanable surfaces,
perfect for non-food contact applications.
10. Cheese & Dairy Products
CFIA and USDA accepted and Class A for
FOR SALE: Wisconsin 10 month
smoke and flame. Call 888-818-0118 or
aged StarK Kosher Parmesan and 3
epiplastics.com.
month aged Asiago. Shreds, blocks,
chunks, loaves. For more information
5. Real Estate
email: ralph@harmonyspecialty.com
DAIRY PLANTS FOR SALE: http://dairyassets.webs.com/dairy-plants. Call Jim at FOR SALE: Pecorino (from sheep’s
milk) for grating, available in
608-835-7705
competitive price. For any interest,
FOR SALE: Specialty powder products
email Mr. Peppi at dtdairytradeltd@
company. Small but rapidly growing.
gmail.com
Wisconsin location. Owner’s health is
Advertise here. Call 608-246-8430
for more information or email info@
cheesereporter.com
FOR SALE: 1500 and 1250 cream
tanks. Like New. (800) 558-0112. (262)
473-3530.
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.
www.gmigaskets.com
EPOXY OR FIBERGLASS floors, walls,
tank-linings, and tile grouting. Installed by
M&W Protective Coating Co. LLC. Call
(715) 234-2251
forcing this sale. Reply to Box J-1085, c/o KEYS MANUFACTURING:
Cheese Reporter, 2810 Crossroads Dr.,
Dehydrators of scrap cheese for the
Madison WI 53718
animal feed idustry. Contact us for
your scrap at (217) 465-4001; email
7. Help Wanted
keysmfg@aol.com.
FULL-TIME: UPLANDS CHEESE in Dodgeville, Wisconsin is hiring a full-time Ship- 14. Testing Services
ping and Office Manager to coordinate all Promote your microbiological, nutritional
cheese shipments and customer commuor food sample testing services here.
nications. Excellent wages and paid time
Call Cheese Reporter at 608-246-8430
off. Contact Andy Hatch at 608-935-5558
or email info@cheesereporter.com
or at uplandscheese@gmail.com
Sales Representatives
We are only as strong as our REPS. Come join our team!
Plastopil is a major producer and supplier of flexible packaging for some of
the largest bulk cheese producers in North America.
We are currently interviewing sales reps for the Pacific Northwest, Midwest,
California and Texas territories.
CAREERS IN DAIRY FINANCE
If you are interested in this excellent opportunity, email:
Mr. M. Hazarie
Menashe_ha@plastopil.com
Herbein is recruiting for some of our top notch
dairy clients. For additional information or to
submit your resume, please contact us at
careers@herbein.com.
Controller - Mid Atlantic Region
Controller - Southern New Jersey
Market Administrator - New York
Plant Finance Manager - Texas
Internal Auditor (1 yr. exp.) - Kansas City
www.herbein.com
Page 14
$1.80
March 18, 2016
CHEESE REPORTER
CME Block/Barrel Price Tracker - 2015 vs. 2016
$1.70
$1.60
DAIRY PRODUCT SALES
$1.80
March 16, 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
2015
Style and Region
March 12
Weighted Price
US
Sales Volume
US
2016
$1.40
J
F
M
A
M
J
J
A
S
O
N
D
$3.00
$2.80
1.5025
40-Pound
Block Avg
$1.40
M A M
WEEK ENDING
March 5
J
J
A
S O
N
D J
Feb. 27
F
M
Feb. 20
12,150,449
Dollars/Pound
1.5044•
Pounds
11,849,492•
1.5040
1.4933
13,020,176
13,014,283•
500-Pound Barrel Cheddar Cheese Prices, Sales & Moisture Contest
$2.60
1.5958
1.5833
1.5205
1.5126
8,779,044
9,508,649
34.93
35.10
2.0737
2.1303
Butter
Weighted Price
US
Sales Volume
US
$2.40
$2.20
2.0004
3,819,313
$2.00
Dollars/Pound
2.0309•
Pounds
3,963,381•
4,146,845
5,463,315
Dry Whey Prices
Weighted Price
US
Sales Volume
US
$1.80
$1.60
0.2563
6,812,009
Dollars/Pounds
0.2530
0.2590
6,142,267
6,649,968
0.2462
8,716,340
Nonfat Dry Milk
$1.40
Average Price
US
Sales Volume
US
$1.20
J
F
M
A
M
J
J
A
S
NDM Prices
O
N
D
0.7623
16,867,368
Dollars/Pound
0.7627•
Pounds
25,731,048•
0.7675
0.7703
14,567,959
16,436,856•
DAIRY FUTURES PRICES
Since 2010
SETTLING PRICE
High Range (Low/Medium Heat): Mostly
$2.20
$1.90
$1.50
Weighted Price
Dollars/Pound
US
1.5694
1.5683•
Weighted Price Adjusted to 38% Moisture
US
1.4975
1.4962•
Sales Volume
Pounds
US
9,624,946
9,874,812•
Weighted Moisture Content
Percent
US
35.03
35.01•
CME Butter Tracker- 2015 vs. 2014 vs 2016
$2.00
$1.60
40-Pound Block Cheddar Cheese Prices and Sales
$1.50
$2.10
CME vs AMS
Central & East
Western
$1.80
$1.70
*Cash Settled
Date
3-11
3-14
3-15
3-16
3-17
Month
March 16
March 16
March 16
March 16
March 16
Class III* Class IV* Dry Whey*
13.79
13.00
25.200
13.79
13.00
25.225
13.79
12.99
25.500
13.80
12.99
25.500
13.83
12.99
25.500
NDM*
77.400
76.875
76.875
77.250
76.600
Butter*
201.000
200.525
199.050
199.050
199.075
Cheese*
1.5180
1.5170
1.5180
1.5180
1.5200
3-11
3-14
3-15
3-16
3-17
April 16
April 16
April 16
April 16
April 16
13.66
13.48
13.40
13.53
13.63
13.38
13.38
13.38
13.38
13.38
24.875
24.875
25.275
25.275
25.625
80.600
79.150
78.000
78.200
77.725
204.250
199.250
196.450
195.250
196.800
1.5040
1.4890
1.4800
1.4880
1.4990
3-11
3-14
3-15
3-16
3-17
May 16
May 16
May 16
May 16
May 16
13.50
13.36
13.29
13.31
13.40
13.56
13.56
13.56
13.56
13.56
25.250
25.250
25.250
25.450
25.450
82.300
81.350
79.675
79.700
78.900
206.000
201.225
198.975
196.475
198.700
1.4930
1.4750
1.4690
1.4670
1.4730
3-11
3-14
3-15
3-16
3-17
June 16
June 16
June 16
June 16
June 16
13.63
13.41
13.69
13.34
13.41
13.77
13.77
13.77
13.76
13.76
25.125
25.025
25.025
25.000
25.025
84.000
82.750
81.250
81.300
80.500
206.725
202.750
201.000
199.525
201.750
1.5000
1.4760
1.4670
1.4750
1.4750
3-11
3-14
3-15
3-16
3-17
July 16
July 16
July 16
July 16
July 16
14.03
13.80
14.11
13.68
13.73
14.05
14.05
14.04
14.04
14.04
25.400
25.275
25.050
25.050
25.275
87.000
85.500
83.925
83.925
83.050
208.500
204.675
203.175
201.825
204.000
1.5370
1.5180
1.5050
1.5100
1.5100
3-11
3-14
3-15
3-16
3-17
August 16
August 16
August 16
August 16
August 16
14.45
14.24
14.43
14.13
14.13
14.47
14.47
13.80
13.80
13.80
25.325
25.325
25.275
25.275
25.275
89.750
87.750
86.200
86.000
85.500
210.500
207.000
205.650
206.750
205.750
1.5800
1.5580
1.5480
1.5500
1.5500
3-11
3-14
3-15
3-16
3-17
September 16
September 16
September 16
September 16
September 16
14.74
14.55
14.56
14.42
14.41
14.70
14.70
14.20
14.20
14.20
26.000
26.000
25.750
25.750
25.750
92.750
85.500
89.000
88.125
87.400
211.750
209.000
207.425
203.750
207.500
1.6090
1.5870
1.5760
1.5790
1.5790
3-11
3-14
3-15
3-16
3-17
October 16
October 16
October 16
October 16
October 16
14.79
14.70
14.54
14.57
14.57
14.66
14.66
14.25
14.25
14.25
27.000
26.500
26.300
26.925
26.925
94.775
87.950
90.300
89.700
89.000
212.000
210.000
209.175
205.325
209.000
1.6110
1.6020
1.5880
1.5860
1.5880
3-11
3-14
3-15
3-16
3-17
November 16
November 16
November 16
November 16
November 16
14.79
14.70
14.56
14.53
14.65
14.86
14.86
14.50
14.50
14.50
27.400
27.250
27.125
27.250
27.250
95.975
92.050
91.500
91.550
90.000
210.725
209.125
208.825
205.500
208.300
1.6100
1.5990
1.5840
1.5850
1.5870
3-11
3-14
3-15
3-16
3-17
December 16
December 16
December 16
December 16
December 16
14.80
14.65
14.56
14.63
14.65
14.78
14.78
14.20
14.30
14.30
27.500
27.925
27.500
27.500
27.500
96.975
96.050
93.000
92.375
91.750
205.475
203.625
203.625
201.000
201.125
1.6080
1.5960
1.5820
1.5820
1.5930
14.79
14.68
14.55
14.57
14.57
32,338
14.44
14.44
14.30
14.30
14.30
2,261
27.500
27.500
27.500
27.500
27.500
5,192
97.825
97.825
97.400
96.650
95.475
6,636
198.000
199.000
195.000
195.000
195.250
6,274
1.5800
1.5800
1.5800
1.5860
1.5820
34,964
$1.60
$1.50
$1.40
$1.30
$1.20
$1.10
$1.00
$0.90
$0.80
$0.70
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Interest - March 17
March 18, 2016
Page 15
CHEESE REPORTER
DAIRY PRODUCT MARKETS
AS REPORTED BY THE US DEPARTMENT OF AGRICULTURE
WHOLESALE CHEESE MARKETS
NATIONAL - MARCH 11:
Cheese production continues to follow rising milk intakes,
resulting in cheese output above normal interest and holiday demand. Sales, especially to
contracted customers, are generally stable and good. However, a few processors report that
sales have slowed, as buyers pause to see what direction cheese market prices will take.
Some end users are fielding a lot of offers from cheese makers, but have a desire to work
through their own inventories first. Cheese processors hope US consumers will continue to
use cheese at a high rate. Yet at some point cheese warehouses will be full unless one or a
combination of three things happen: milk flows decline and less cheese is made; domestic
cheese consumption increases even further; or export sales increase. Foreign markets are
weak and the EU has high volumes of cheese production.
NORTHEAST- MARCH 16: Milk volumes are keeping most, if not all, cheese plants
operating on heavy seasonal schedules. Overall, cheese sales are fair to good and improving,
as holiday needs help boost transactions. Orders from the foodservice industry are steady.
Manufacturers note that higher than expected milk protein levels are increasing cheese yields.
Wholesale prices, delivered, dollars per/lb:
Cheddar 40-lb blocks: $1.9175 - $2.2025 Process 5-lb sliced: $1.6700 - $2.1500
Muenster:
$1.9375 - $2.2875 Swiss Cuts 10-14 lbs: $3.0550 - $3.3775
MIDWEST AREA - MARCH 16: Although still a little early for spring flush, Midwest
cheese makers are seeing plenty of milk available for their processing needs. Many manufacturers say they are near full capacity. However, they will still buy a few extra loads of milk
to complete production schedules, if the milk is priced right. Some spot loads of milk are
available at $1.50 to $3.00 under Class. Domestic retail cheese demand continues to be
a good draw. Sales into foodservice and Mozzarella for pizza have also been respectable.
Barrel cheese and cheese for manufacturing lines are moving slowly with most transactions
completed only on standing contracts. Manufacturers feel end users are holding off on purchases and trying to burn through their inventories, before reentering the market. Inventories
continue to be long for cheese barrels, but a little lighter for blocks.
Wholesale prices delivered, dollars per/lb:
Brick/Muens 5# Loaf: $1.8875 - $2.3125
Monterey Jack 10#:
$1.8625 - $2.0675
Mozzarella 5-6# (LMPS): $1.6875 - $2.6275
Process 5# Loaf:
Cheddar 40# Block:
Blue 5# Loaf:
Grade A Swiss 6-9#:
$1.5625 - $1.9225
$1.6150 - $2.0100
$2.1550 - $3.1425
$2.5725 - $2.6900
WEST - MARCH 16:
West cheese production remains steady to higher as milk intakes
increase seasonally. Manufacturers say demand is still good from foodservice and retail
accounts. However, club stores and other large retailers have slowed their cheese orders
somewhat and are taking a wait and see approach to the market. Many want to see what
direction the cheese price trend will take before making any large-scale purchase decisions.
In addition, end users are facing a lot of offers from cheese makers, especially for cheese
barrels, but are hesitant to make buys until they can work through their own inventories.
Cheese stocks remain long for barrels. Some end users note a little more tightness with
cheese blocks, especially fresh blocks.
Wholesale prices delivered, dollars per/lb: Process 5# Loaf:
Cheddar 40# Block:
$1.6200 - $2.0650 Cheddar 10# Cuts:
Monterey Jack 10#:
$1.8100 - $1.9700 Grade A Swiss 6-9#:
$1.5775 - $1.8350
$1.8000 - $2.0200
$2.6325 - $3.0625
FOREIGN -TYPE CHEESE - MARCH 16: Cheese demand has strengthened in the
EU following recent weaker prices. Markets are stable, with production meeting demand
and inventories at comfortable levels. Export shipments have increased and stocks in aging
programs are deemed sufficient. In New Zealand, the GDT event 160 results on Tuesday
did not generate any bids for Cheddar for the next three contract periods. Industry observers
believe this reflects heavy inventories and thus, little interest in further acquisitions.
Selling prices, delivered, dollars per/lb:
Blue:
Gorgonzola:
Parmesan (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
$2.8500 - 4.9300
$3.2900 - 4.9300
$2.9500 - 6.4500
0
$2.6700- 2.9300
Domestic
$2.0825 - 3.5700
$2.5900 - 3.2875
$3.4725 - 5.5625
$3.2725 - 5.4225
0
0
0
$3.0925- 3.4150
0
WHOLESALE BUTTER MARKETS
NATIONAL - MARCH 11:
Butter production is active throughout the country as
heavy cream volumes continue clearing
into butter manufacturing. However, many
churners are less interested in pursuing additional cream loads as the spring
holiday butter orders are getting filled. In
the West, some processors are backing
off butter production and shifting cream
to other manufactured product lines, like
cream cheese and ice cream. Butter
inventories are building across the nation.
Butter demand from retailers is good in
the East and Central regions as the spring
holidays approach.
NORTHEAST - MARCH 16:
The
market can reasonably expect regional
churning to maintain a high rate, since
most butter makers will likely churn rather
than sell cream at the current multiples.
As the holidays fast approach, some are
storing substantial supplies of bulk butter.
Demand varies, but retailers in general are
placing orders in anticipation of holiday
needs. This week, Northeast retail stores
posted a noteworthy decline in butter ads
compared to last week. The butter market
undertone remains weak.
CENTRAL - MARCH 16: Bulk and
print butter production channels are active
throughout the region this week. Spot
cream offers are available, and interest
is steady to light. Manufacturers indicate
sales into print are ongoing, but represent
previously arranged sales, for the most
part, versus new sales. Consumer feature
fulfillment plays heavily into the loads shipping now through the middle of next week.
Butter inventories are steady to building.
WEST - MARCH 16: As the spring holidays draw near, butter makers are seeing
some of the seasonal demand ebb away.
Most of the orders are now filled for the
early spring holidays and inventories are
building. In addition, a few industry contacts say some end users and secondary
marketers have filled their warehouses to
assure coverage of butter needs for later in
the year. Cream supplies are readily available and butter production is still active. But
a number of processors are considering
what the most economical use of the cream
may be. A few butter makers are slowing
the churns in favor of producing some other
cream products or selling cream where
they can.
FLUID MILK & CREAM - MARCH 16
NATIONAL: Milk production, in most of
the country, is increasing along seasonal
patterns. In the Pacific Northwest, industry
contacts say the spring flush is underway.
In the North Central region, it is early for
the arrival of spring flush for many operations. And on both coasts, in California and
the Northeast/Mid-Atlantic regions, milk levels are steady to higher. Milk volumes are
generally sufficient for all processing needs.
In some cases, manufacturers have less
capacity available for toll processing. Other
processors are gearing up to have a short,
hard push on production to move items to
retailers ahead of the spring holidays. Bottling demand is mixed with some Midwestern
operators scouting for additional milk loads
to fill educational institution and retail needs;
others see decreases in bottled milk sales.
Bottled milk sales are steady in California
and in the Pacific Northwest, but lower in
Arizona, New Mexico and in the Southeast.
In many cases, K-12 milk orders are in flux
due to the spring break calendaring. Heavy
cream volumes continue to clear into butter
churns, and demands from ice cream and
cream cheese makers are trending higher.
CENTRAL:
Throughout the Central
region, milk intakes are steadily increasing from week to week. Southern area milk
handlers note bigger steps up in production
compared to Northern milk handlers. As the
flush approaches, though, there is growing
concern among marketers and cooperatives
regarding maintaining markets for potentially
larger volumes of finished products. There
has been some discussion about notifications to producers regarding changes in how
milk payments will be handled for volumes
above year ago marketing. Bottled milk
demand is uneven from location to location as school districts cycle through week
long shutdown periods. However, the overall
demand for bottled milk light to moderate.
Most bottlers indicate the overall sales trend
is downward. Milk spot loads and condensed
skim volumes are readily available throughout the region. Confirmed spot milk sale
prices range from $3.50 under to flat Class.
However a few milk marketers indicate
they received bids of $5-$8 under Class.
Milk marketers indicate cheese manufacturers have interest in spot milk loads, as
long as prices are at a discount to class.
Handlers in the North Central area indicate
manufacturing space and time are a premium. Wait times for unloading are growing
at some plants as intake volumes increase
seasonally. Recent reports indicate that milk
discards are happening, but the industry is
trying to keep those instances to a minimum.
NORTHEAST: Northeast milk production
is active throughout the region as increases
occur along the seasonal pattern. Some milk
handlers indicated milk sales across classes
are steady. Manufacturing milk supplies are
heavier but manageable. March milk production levels are up in the Mid-Atlantic. Balancing plant managers are comfortable with
current milk intakes, while looking ahead to
imminent upsurges in milk supplies. Class I
milk sales are stable. Surplus milk is moving at substantial discounts in some market channels. Milk production is climbing in
the Southeast. March is typically the month
milk output in area states gain momentum
toward the peak. Participants in the market
indicate Southeastern manufacturing plants
are operating at capacity levels. Sales to
bottling are unchanged. Florida milk production is surging.
WEST: Farm milk production continues
rising in California. Milk components are
stepping lower due to an increase in temperatures. Bottled sales are steady this
week. Sales into ice cream and frozen dessert manufacturing are steady as processors
are ramping up production for the upcoming
spring holidays and summer season. Most
educational institutions are closed this week
due to the spring break. As a result, orders
from bottlers are lower. Some ice cream
manufacturers have been pulling moderate
condensed skim volumes throughout the
week. Sales into Class I are lower as the
spring break for most K-12 school calendars
will start in the next two weeks. Sales into
Class II are higher as the interest for ice
cream is growing. Dry product processing
is more active this week as some dryers
completed repair/maintenancework. Manufacturing milk volumes moving into Class III
are steady to lower. Pacific Northwest milk
production is increasing. Some processors
report the region is heading into spring flush
and the processors are working hard to find
homes for loads of additional milk.
DRY DAIRY PRODUCTS - MARCH 17
NDM - CENTRAL: With recent declining
price trends in international markets, buyers are shopping cautiously in the domestic
market. With availability of low/medium heat
f.o.b. spot loads from numerous producers, as well as offers from resellers, buyers
are firmly in control of pricing. Low/medium
heat NDM production is steady to higher.
Some manufacturers are trying to staunch
the flow of condensed skim through the dryers by actively offering spot condensed skim
loads. There, too, buyers are interested, if
the price is right. Longstanding cooperative
efforts between milk purchasers and milk
marketers are helping even out the over/
under supply situations in various milksheds.
Within those arrangements, additional milk
volumes are clearing into Class III production to support steady cheese sales. Inventories are building as on-farm milk production
ramps up toward the flush. High heat NDM
prices are unchanged. Some interest into
specialty end user accounts is picking up
seasonally. Stocks on hand are generally
sufficient for near term interest. Production
is generally limited end of run time slots so
that nothing slows the clearing of condensed
skim volumes.
NDM - EAST: Low/medium NDM prices
are unchanged in the range, but steady to
lower in the mostly series. Plants continue to
report active drying in order to clear increasing condensed skim supplies. Stocks of low/
medium heat NDM, at the producer level,
are building as uneven demand builds up
total regional supplies. To balance growth,
multi-load offerings at lower prices exist
from those manufacturers hoping to reduce
supply levels. Demand is weak in the spot
market as buyers/users postpone purchases
for better prices. In some instances, low/
medium NDM interests from export markets
are developing around competitive pricing.
The domestic market tone is steady to weak.
WEST - NDM:
The low/medium heat
NDM market is weak, with recent offshore
auction results underscoring this year’s situation of global chronic oversupply. However,
within some Western states, NDM inventories are tighter after significant weekly sales.
Domestic prices are unchanged to lower. In
conjunction with some higher use of NDM/
condensed skim into cheese manufacturing, regional NDM inventories are mixed.
A few manufacturers indicate they have
limited quantities available to fulfill block
needs. Other producers report that as milk
production trends higher seasonally, their
NDM output is growing alongside stocks
on hand. A few plants completed maintenance projects and are once again receiving
milk intakes and channeling those volumes
through the dryer. Within various western
milksheds, milk marketers are coordinating
use of milk among cheese and dryer plants
to best handle weekly milk supplies.
WEEKLY COLD STORAGE HOLDINGS
SELECTED STORAGE CENTERS IN 1,000 POUNDS - INCLUDING GOVERNMENT
DATE
......................................
BUTTER
3/14/16
3/01/16
Change
......................................
......................................
......................................
22,007
21,185
822
CHEESE
95,869
93,830
2,039
Page 16
March 18, 2016
CHEESE REPORTER
FDA Publishes Final Rule
On ‘Mad Cow Disease’
In Food; Confirms That
Milk Products Are Not
Banned Cattle Materials
CME CASH PRICES - MARCH 14 - 18, 2016
Visit www.cheesereporter.com for daily prices
CHEDDAR
500-LB. BARRELS
CHEDDAR
40-LB. BLOCKS
AA
BUTTER
GRADE A
NFDM
MONDAY
March 14
$1.4425
(-2¾)
$1.4875
(-1¼)
$1.9400
(-4¾)
$0.7450
(-2½)
TUESDAY
March 15
$1.4300
(-1¼)
$1.4875
(NC)
$1.9250
(-1½)
WEDNESDAY
March 16
$1.4300
(NC)
$1.4875
(NC)
$1.9400
(+1½)
$0.7375
(-¾)
$0.7375
(NC)
THURSDAY
March 17
$1.4200
(-1)
$1.4875
(NC)
$1.9400
(NC)
$0.7275
(-1)
FRIDAY
March 18
$1.5000
(+8)
$1.4900
(+¼)
$1.9500
(+1)
$0.7300
(+¼)
Week’s AVG
Change
$1.4445
(-0.0215)
$1.4880
(-0.0240)
$1.9390
(-0.0420)
$0.7355
(-0.0140)
Last Week’s
AVG
$1.4660
$1.5120
$1.9810
$0.7495
2014 AVG
Same Week
$1.5410
$1.5600
$1.6800
$0.9840
MARKET OPINION - CHEESE REPORTER
Cheese Comment: Monday’s block market activity was limited to an uncovered
offer of 1 car at $1.4875, which reduced the price. There was no block market activity
on Tuesday. Wednesday’s block market activity was limited to an uncovered offer of
1 car at $1.4975, which left the price unchanged. There was no block market activity again on Thursday. On Friday, 1 car of blocks was sold on an offer at $1.4900,
which raised the price. The barrel price fell Monday on an uncovered offer of 1 car at
$1.4425, declined Tuesday on an uncovered offer of 1 car at $1.4300, fell Thursday
on an offer-based sale of 1 car at $1.4200, then jumped Friday on an unfilled bid for
1 car at $1.5000.
Butter Comment: The butter price declined Monday on an unfilled bid for 1 car at
$1.9400 (following a sale at $1.9300), fell Tuesday on an offer-based sale of 1 car
at $1.9250, rose Wednesday on sales of 3 cars at $1.9400, and increased Friday on
an unfilled bid for 1 car at $1.9500.
NDM Comment: The nonfat dry milk price declined Monday on an uncovered offer of
1 car at 74.5 cents a pound, fell Tuesday on a bid-based sale of 1 car at 73.75 cents,
declined Thursday on a bid-based sale of 1 car at 72.75 cents, and rose Friday on
an unfilled bid for 1 car at 73.0 cents.
WHEY MARKETS - MARCH 14 - 18, 2016
Washington—The US Food and
Drug Administration (FDA) this
week issued a rule finalizing three
previously issued interim final
rules designed to further reduce
the potential risk of bovine spongiform encephalopathy (BSE), also
known as “mad cow disease,” in
human food.
BSE is a fatal neurological disorder of cattle that has a long incubation period (two to eight years). It
is transmitted when cattle ingest
protein meal containing the BSE
infectious agent. Cattle affected
by BSE are usually apart from the
herd and will show progressively
deteriorating behaviorial and neurological signs.
Studies have linked variant
Creutzfeldt-Jakob disease (vCJD)
in humans to exposure to the BSE
agent, most likely through human
consumption of beef products contaminated with the BSE agent.
The final rule published by
FDA this week completes a rulemaking process that began with
an interim final rule in 2004 and
was followed by interim final rules
in 2005 and 2008. The final rule
provides definitions for prohibited
cattle materials and prohibits their
use in human food, dietary supplements, and cosmetics, to address
the potential risk of BSE.
These materials include: specified risk materials (SRMs), such as
the brain, skull, eyes, spinal cord
and vertebral column of cattle 30
months of age and older; the small
intestine from all cattle unless
the distal ileum has been properly
removed; material from nonambulatory disabled cattle; and material from cattle not inspected and
passed, or mechanically separated.
The final rule also confirms that
milk and milk products, hides and
hide-derived products, tallow that
contains no more than 0.15 percent insoluble impurities, and tallow derivatives are not prohibited
cattle materials.
FDA also finalized the process
for designating a country as not
subject to BSE-related restrictions applicable to FDA regulated
human food and cosmetics.
Finally, the rule provides a definition of gelatin and clarifies that
gelatin is not considered a prohibited cattle material if it is manufactured using the customary industry
processes specified. Gelatin was
never considered a prohibited cattle material, but FDA had never
specifically defined gelatin in past
interim final rules.
The US has long had measures
in place to prevent the introduction and spread of BSE, FDA said.
RELEASE DATE - MARCH 17, 2016
Animal Feed Whey—Central: Milk Replacer: .1250(NC) – .2150 (NC)
Buttermilk Powder:
Central & East:
.7200 (NC) – .8250(NC)
Mostly:
.7200 (-2) – .8000 (NC)
Casein: Rennet:
DICE
West: .6800 (-4) – .8100 (NC)
$2.2200 (NC) – $2.9000 (-15) Acid: $2.3600 (NC) - $3.0500 (-15)
Dry Whey Powder—Central (Edible):
Nonhygroscopic:
.1800 (NC) – .2850(-½) Mostly: .2200 (NC) – .2650(NC)
Dry Whey–West (Edible):
Nonhygroscopic:
.2300 (NC) – .3000 (-½) Mostly: .2300 (NC) – .2700 (NC)
Dry Whey—NE:
.2200 (NC) — .2875 (-¼)
Lactose—Central and West:
Edible:
.1800 (NC) –.3200(NC)
Mostly: .2050 (+1) – .2550 (NC)
CRUMBLE
SHRED
SLICE
STRIP
CUTTING EDGE
Endless Styles of Cuts at
Industrial-Level Yields
Nonfat Dry Milk —Central & East:
Low/Medium Heat: .7100(NC) – .8400(NC)
Mostly: .7400(-1) – .8100 (NC)
High Heat:
.8500 (NC) - 1.1000(NC)
Nonfat Dry Milk —Western:
Low/Medium Heat: .6850(NC) – .8100 (-1)
Mostly: .7200 (NC) –.7650(-½)
High Heat:
.8400(NC) – 1.1025(NC)
California Weighted Average NFDM:
March 11
March 4
$0.7885
$0.7590
7,521,889
12,313,745
nules
e Gra
Coars
Whey Protein Concentrate—Central and West:
Edible 34% Protein: .5100 (-3) – .7300 (NC) Mostly: .5400 (NC) – .6200(NC)
Whole Milk—National: 1.1500 (-2) – 1.4475 (NC)
ips
le Str
Crink
Visit www.cheesereporter.com for dairy and historical
ices
1/8" D
cheese, butter, NFDM and whey prices
‘05
‘06
‘07
‘08
‘09
‘10
‘11
‘12
‘13
‘14
‘15
‘16
Feb
Mar
Apr
May
Jun
Jul
14.38
12.56
12.47
16.91
9.02
12.72
12.49
14.23
15.84
20.31
13.75
13.72
13.93
11.14
13.20
17.54
10.11
12.95
16.92
13.42
15.41
21.14
13.78
13.05
13.87
10.49
14.13
16.94
10.45
11.13
16.76
13.67
15.02
22.16
13.97
14.34
10.43
15.20
16.79
10.41
12.30
14.34
13.43
16.92
21.73
14.22
13.39
10.48
18.05
18.66
9.54
12.40
14.74
13.56
17.20
19.34
14.63
13.62
10.65
21.18
19.12
9.52
12.23
18.79
14.65
15.91
19.07
15.55
14.01
10.28
20.54
17.77
9.39
13.37
19.35
15.18
15.65
18.69
14.98
Aug Sep
12.99
10.8
19.41
16.14
11.29
14.39
18.60
16.57
16.32
19.96
15.74
14.23
11.87
19.34
16.63
11.40
15.48
16.63
17.50
16.65
22.39
14.94
Oct
Nov
13.72
11.40
17.65
16.63
12.69
15.66
15.78
19.43
16.82
20.94
14.75
12.69
12.32
19.75
15.14
13.76
13.14
17.19
18.48
17.30
18.70
14.32
Dec
13.26
12.37
18.58
13.95
15.04
12.22
15.14
16.30
18.03
14.78
12.90
#1327
®
HISTORICAL MILK PRICES - CLASS 4B
Jan
s
Shred
scent
e
r
C
&
Booth
V Cut
Contact Urschel for a no-charge test-cut of your product
info@urschel.com | Toll Free: +1.844.URSCHEL (877.2435)
www.urschel.com
delivering
targeted
cutting
solutions
® Urschel & The Global Leader in Food Cutting Technology are registered trademarks of Urschel Laboratories, Inc. U.S.A.
For more information, circle #35 on the Reader Response Card on
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02/16/2016
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9:30 AM

March 18, 2016 - Cheese Reporter

Transcription

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