Fall - Grassland

www.grassland.com
Fall 2015
Pass the Butter
“Eat Butter” was a memorable Time Magazine cover for the dairy
industry. Since June 2014 when the issue hit the shelves, butter and
full-fat dairy products are getting a second look. Dairy fat may no
longer be the diet villain.
Over the past few months, the dairy market fluctuated with the
surging demand and tightening supply of dairy fat. Summer’s peak
demand for ice cream and butter boosted costs and the Midwest and
Northeast reached the second highest price for the month of July
since 1998 at $2.81 per pound of wholesale cream. In the past year,
ice cream sales rose by about 2.7 percent and butter sales increased
17 percent.
An Attitude Change
Retail analysts anticipate that consumers will continue to move away from skim milk and margarine.
Consumer attitudes are shifting towards whole milk and butter. Retail shoppers continue to look for
transparent and healthy products. The average consumer understands the ingredients in dairy and butter,
for example, is one of the simplest items on the shelf: cream and salt. Keep It Simple Stupid.
No Longer a Villain
In 1977, Americans were urged to stay away from dairy, red meat and eggs by the “Dietary Goals for the
United States.” At the time, dairy especially butter, was thought to increase the chances of
cardiovascular disease. A meta-analysis published by the Annals of Internal Medicine in March of 2014
reevaluated saturated fat and heart disease, finding no link between the two, and prompted Time
Magazine’s “Eat Butter”. The European Journal of Nutrition recently concurred that people who eat
full-fat dairy are no more likely to develop cardiovascular disease and Type 2 diabetes than those who
consume low-fat dairy. Not only is there a lack of support for the link between full-fat dairy and heart
problems, but no evidential link between full-fat dairy and obesity.
Many recent studies, including the European Journal of Nutrition, show no support that low-fat dairy is
healthier than full fat. When observing obesity factors, 18 out of 25 studies reported lower body weights
and less weight gain for full-fat dairy consumers. The Scandinavian Journal of Primary Health Care’s 2013
study reported that those who frequently ate full-fat butter, milk and cream, had lower obesity rates than
those who avoided dairy fats. Dairy fatty acids provide satiety. Moderate consumption of dairy fat can
help a person feel fuller sooner and stay full longer. Recent studies suggest there may even be a link to
dairy fatty acids playing a role in gene expression and hormone regulation. Further research may prove
that dairy fat can affect how much energy the body burns and the amount of fat it stores.
Butter is Back
Butter and high fat dairy products are making a comeback with growing demand. Simple ingredients and
science are the sidekicks who helped dairy become a hero product again.
Fall 2015
The Dairy Market Report
Butter
On the week of September 21st, the butter
market rose 41.75 cents, starting on Monday at
plus 3.75 cents; Tuesday, plus 7.75 cents;
Wednesday (after release of the Cold Storage
report), plus 19.25 cents… Matching the price
rise at the CME, several butter-trading contacts
reported the market tightened further near the
end of September.
McDonald’s recently announced a switch to using
real butter in menu items and it injected a dose
of perceived upside butter sales potential across
the foodservice channel. Meanwhile, retailers
upped their orders to ensure adequate supplies
during the Holiday season now that butterfat is
back in vogue among consumers. This, after
California production declined 23 million pounds
during the first eight months of 2015.
The result: a few manufacturers were short of
their forecasted requirements for the 4th
Quarter selling season and, adding to the speed
of the price increase, the spot butter market was
very thin. In recent weeks and days both of these
issues intensified as industry sentiment shifted
from calm to nervous.
Even so, the Cold Storage report showed
historically normal inventories on 31 August at
209 million pounds. In the coming weeks it is
anticipated that sales forecasts will be reduced
and confirmed and the market will realize that is
adequately supplied.
International Market
While domestic demand for cheese and milk
products has continued to rise steadily, exports
have suffered from reduced international
demand. Lower world dairy prices, significantly
below those in the U.S., have attracted the
attention of international buyers. This too has
attracted the attention of international sellers:
U.S. imports of cheese and dried milk proteins
have been above year-earlier levels. But, overall,
total imports remain less than 4 percent of
domestic production.
In the nonfat dry milk market, for the first time
in a long while, we heard about USA powder
inquiries coming from Chinese buyers. Data also
indicate sales into the country have perked up:
Chinese skim milk powder imports increased 11%
(+1,975MT) during August. This is the first YoY
increase in 13 months.
Chinese cheese imports were 25% above year-ago
levels (+1,004MT) during the month while whey
imports were up 7.1% (+2,482MT). Butterfat
imports were also positive, up 23% (+1,025MT)
after having averaged down 36% during the first
seven months of the year.
The data and forecasts in this report are excerpts from
the Dairy & Food Market Analyst by Jerry Dryer and
Matt Gould. mgould@dairymarketanalyst.com
Page 2
Fall 2015
Profile: Shetakis Foodservice
In 1948, Jim Shetakis began distributing food out of
the back of his truck. Today, Shetakis Foodservice is
the largest independent food distributor in Las Vegas.
Family-owned since 1959, Shetakis abides by their
reputation of quality, integrity and dedication to
customer satisfaction.
Distributors of a variety of products ranging from dry
groceries, meats, seafood, gourmet specialties and
more, Shetakis caters to a variety of venues. Located
near the Las Vegas Strip, the company services major
resorts, restaurants and casinos. State-of-the-art
facilities house top-of-the-line products guaranteed
to perform. Shetakis focuses its catalog on nationally
branded products to ensure consistent quality. As a
UniPro member, Shetakis uses purchasing power to
leverage the cost of goods to its customers, while
providing a variety of products.
Shetakis manages its own fleet of over 30 vehicles for
distribution. The company utilizes technological
advancements to reduce fuel and energy consumption
in every aspect of their business.
Shetakis is one of the primary distributors of Grassland
products on the Las Vegas strip. Carrying Grassland
and Country Cream butter solids and portion control
items, Shetakis also promotes the Wüthrich specialty
items, including clarified butter. Shetakis’ portfolio
focuses on nationally branded products that provide
consistent quality. The company selected Grassland’s
butter products to fulfill that focus in the butter
category.
For over 30 years, Shetakis reigns as the largest
independent food distributor in Las Vegas. The
company is dedicated to Quality, Service and Integrity
while providing customer satisfaction.
“The Independent
Choice for Las Vegas”
We create and maintain relationships
built on a history of trust.
The articles and commentary in this
newsletter do not necessarily reflect the
views of Grassland Dairy Products, Inc.
Page 3
Fall 2015
Dairy Application: Cultured Dairy Beverage with Buttermilk
Grassland Dairy Products, Inc.’s Sweet Cream
Buttermilk Powder is manufactured by spray-drying
the liquid buttermilk obtained from sweet cream
butter production.
Grassland recently featured this
ingredient application at IFT. For
more information, please email
ingredientsales@grassland.com.
Application for Buttermilk in
Cultured Dairy Beverage
Ingredients
Amount
Milk, 2%
40.66%
Milk, nonfat/skim
with added Vit. A & D
40.66%
Sweet Cream Buttermilk Powder
1.59%
Yogurt Stabilizer
0.05%
Vanilla Base
17.04%
Photo courtesy of the Wisconsin
Milk Marketing Board, Inc.
Nothing But the Udder Truth
Dairy Management, Inc. (DMI) recently hired the satirical
The Onion to produce the Udder Truth campaign. DMI is
a farmer-funded dairy promotions organization with the
intent to change consumer perceptions about dairy
farming. The Udder Truth campaign targets millennials
with the intention of redirecting them from popularly
absurd news headlines to the serious Udder Truth
content. “Radioactive Panda Tears in Your Milk?” from
The Onion’s webpage links to videos that address popular
topics about dairy farms on www.uddertruth.org. The
campaign already established videos that discuss animal
welfare, large dairy farms and antibiotics.
This fall, DMI will launch another video series, Acres and
Avenues, where farmers will trade places with someone
from a city for the day. From the producers of the “Got
Milk?” campaign, DMI strives to educate consumers about
the “udder truth” of the dairy industry.
Page 4
Fall 2015
Product Profile
NutraPro Milk Protein Isolate
Grassland Dairy Products, Inc.’s NutraPro-MPI is manufactured from
the ultrafiltration and spray-drying of skim milk, which is sourced from
farm-fresh whole milk. NutraPro-MPI is created using a low-heat
filtration process which generates an undenatured protein and a highly
nutritional Milk Protein Isolate (MPI). The low-heat method creates a
NutraPro-MPI with high stability and solubility properties.
NutraPro-MPI is obtained during the filtration process by reducing the
water, lactose, and mineral levels to craft a MPC with a protein level
of 90%. The casein-to-whey protein ratio is not affected during this
process and remains the same as raw milk.
Applications: superior protein source, adult and infant nutrition,
cultured dairy products, lactose-free labeling, sports nutrition
beverages, weight management and more....
Sample our
NutraPro MPI
application at Food
Ingredients Europe
in December!
Grassland’s Story
Over a Century of Dairy Passion
Grassland Dairy Products, Inc. maintains the Wuethrich family legacy with more
than a century of churning cream into delicious butter in Greenwood, Wisconsin.
Grassland applies product research and development and continuous
technological improvements to maintain its reputation as a quality dairy products
manufacturer. With a variety of product offerings, Grassland commits to exceeding
the needs of their dairy retail, foodservice and industrial customers, both domestic
and international. Each product is made with the same commitment to quality,
service and value as established by John S. Wuethrich in 1904.
Grassland and West Point Dairy Products LLC continue to build on a fundamental
commitment to delivering unsurpassed quality and value.
Grassland Dairy Products, Inc.
N8790 Fairground Avenue, Greenwood, WI 54437
(800) 428-8837
www.grassland.com
Page 5