Schools ponder flavored milk bans as industry fights back

16
CCCD report examines ways to improve California dairy DAVIS, Calif. — The California Center for Cooperative Develop- ment (CCCD) recently published “Challenges and Opportunities for California’s Dairy Economy,” a report developed from more than 130 interviews with stakeholders across the state’s dairy industry. The 144-page report offers a comprehensive, in-depth look at issues of interest to California’s dairy industry, from supply- demand imbalance and price risk management to dairy biogas systems and value-added opportunities in artisan cheese and other products. It also presents a number of resources and op- tions available to dairy producers. The report was designed to present these issues in an accessible format that can be used by a wide range of stakeholders in the indus- try, according to Justin Ellerby, cooperative specialist, CCCD, and author of the report. Although it is directed towards dairy producers, New ideas emerge as Congress continues 2012 budget debate WASHINGTON — New proposals addressing the 2012 budget, debt ceiling and other fiscal measures have emerged in Congress in the past couple weeks as lawmakers continue to struggle with reaching a consensus on funding. This week Hal Rogers, R-Ky., chair of the House Appropriations Committee, announced a schedule for the completion of work on the 12 fiscal year 2012 appropriations bills by Sept. 30, the end of this fiscal year. The plan includes marking up and approving each bill at both the subcommittee and full committee levels in the next few months before Congress’ August recess. Rogers notes the schedule will help avoid a “perilous budget situa- tion” like the one that occurred earlier this year, which caused the fiscal year 2011 appropriations bill to be approved seven months late and “prompted arduous negotiations and threats of a government shutdown. “I promised when I became chairman that I would complete our ap- propriations work on time and on budget, and I will do everything I can to fulfill that promise,” Rogers says. “Congress has a responsibility to the American people to complete this legislation before the end of the fiscal year so that vital programs and services can be funded adequately and sensibly.” In addition, reflecting the need for significant budget reductions to help cut back the nation’s debt, Rogers announced “lean” funding limits for each of the 12 appropriations subcommittees. The levels are based on the budget resolution the House passed last month and include a reduction of nearly $46 billion from last year’s levels for non-security programs. (See “Guest worker, labeling, budget bills moving through Congress,” April 22, 2011, in Cheese Market News’ article archive at www.cheesemarketnews.com.) Much of the budget talk in Washington in recent weeks has focused on the bipartisan “Gang of Six” senators working toward a new funding compromise. While details of the group’s plan still have not been revealed, some of the group’s members have come forward with their own proposals. Sen. Kent Conrad, D-N.D., one of the group’s members, this week presented a proposal to the Democratic caucus that contains an even split of spending cuts and tax hikes. Conrad’s proposal calls for a 3 percent surtax on annual incomes Volume 31 May 13, 2011 Number 16 — As con- cerns continue to mount over childhood obesity, more schools are looking to flavored milk bans as one way to cut sugar intake in kids’ diets. The attack on flavored milk “seems to be flaring up again,” says Greg Miller, executive vice president of research, regula- tory and scientific affairs, National Dairy Council (NDC). At the forefront of recent media coverage is Jamie Oliver, Schools ponder flavored milk bans as industry fights back a chef and host of the television show “Food Revolution.” On a segment to be aired on the show, Oliver filled a school bus with white sand to represent the amount of sugar Los An- geles Unified schoolchildren consume weekly in flavored milk. On a recent appearance on the “Jimmy Kimmel Live!” talk show, Oliver praised a recent announcement from Los An- geles Unified Superintendent John Deasy that he plans to push to remove chocolate and strawberry milk from school menus. School districts in Berke- ley, Calif., and Boulder Valley School District in Louisville, Colo., are among those that already have enacted flavored milk bans. However, when flavored milk options were limited or altogether eliminated from school menus, elementary student milk consumption in 58 schools dropped by an aver- age of 35 percent, according to a recent study by the Milk Processor Education Program (MilkPEP). “The thing is, flavored milk only provides about 3 percent of the sugar in kids’ diets,” Miller says. “There are plenty of other places in kids’ diets to cut sugar intake, but don’t do it with a nutrient-rich product.” Miller is referring to the nine essential nutrients found in milk, both flavored and un- flavored — calcium, vitamin D, riboflavin, phosphorus, protein, potassium, vitamin A, vitamin B12 and niacin. “Considering kids might not make the switch to white milk, as is suggested by the (MilkPEP) study, limiting fla- vored milk doesn’t seem like the right move,” Miller says. “We’re hoping common sense will prevail.” Miller adds that the 2010 Di- etary Guidelines for Americans recommend that individuals increase intake of fat-free or lowfat milk and milk products, such as milk, yogurt and cheese, as part of a healthy eating plan. “The guidelines recommend kids drink more milk now, which lends itself to increased milk intake when they are adults, because adults aren’t drinking enough milk,” he adds. Julie Buric, vice president of marketing for MilkPEP, notes one reason schools may be turning to ban flavored milk is that it provides a “quick fix” for school districts to show they are working to provide more nutritious options for children. “The problem is that kids need those nutrients and they aren’t getting enough of them elsewhere,” Buric says, noting that study results showed the most common replacements for flavored milk were water and juice — which also can have high amounts of sugar — not white milk. “With all the variety out there in other beverages, it’s important that kids have op- tions when it comes to milk, too,” she says, adding that data show 70 percent of the milk chosen in schools is flavored. “When flavored milk leaves the lunchroom, its nine essential nutrients can leave with it.” Connie Tipton, president and CEO of the Internation- al Dairy Foods Association (IDFA), this week sent a letter and background information highlighting the benefits of including flavored milk as an option in school lunch rooms to L.A. School Superintendent Deasy. Tipton also offered to hold a webcast briefing to provide details on industry research by MilkPEP. “Dairy processors have invested millions of dollars to reformulate flavored milks so USDA lowers 2011 forecast for milk production Turn to FLAVOR, page 16 D Turn to CCCD, page 14 D WASHINGTON — Milk pro- duction in 2011 is projected at 195.4 billion pounds, down 500 million pounds from last month’s report and primar- ily reflecting slower growth in milk per cow despite more rapid growth in cow numbers,USDA says in its “World Agricultural Supply and Demand Estimates” (WASDE) report released this week. However, 2011 Turn to WASDE, page 6 D Turn to BUDGET, page 15 D ) Guest column: ‘Global mindset no longer optional.’ For details, see page 4. ) USDA seeks importers for National Dairy Board. For details, see page 5. ) Retail WATCH Exclusive: Award-winning cheeses, marketing help Burnett Dairy grow its presence. For details, see page 7. ) Dairy progress ahead of 2012 Farm Bill unlikely. For details, see page 15. INSIDE Reprinted with permission from the May 13, 2011, edition of CHEESE MARKET NEWS ® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

Transcript of Schools ponder flavored milk bans as industry fights back

CCCD report examines ways to improve California dairyDAVIS, Calif. — The California Center for Cooperative Develop-ment (CCCD) recently published “Challenges and Opportunities for California’s Dairy Economy,” a report developed from more than 130 interviews with stakeholders across the state’s dairy industry.

The 144-page report offers a comprehensive, in-depth look at issues of interest to California’s dairy industry, from supply-demand imbalance and price risk management to dairy biogas systems and value-added opportunities in artisan cheese and other products. It also presents a number of resources and op-tions available to dairy producers.

The report was designed to present these issues in an accessible format that can be used by a wide range of stakeholders in the indus-try, according to Justin Ellerby, cooperative specialist, CCCD, and author of the report. Although it is directed towards dairy producers,

New ideas emerge as Congress continues 2012 budget debateWASHINGTON — New proposals addressing the 2012 budget, debt ceiling and other fiscal measures have emerged in Congress in the past couple weeks as lawmakers continue to struggle with reaching a consensus on funding.

This week Hal Rogers, R-Ky., chair of the House Appropriations Committee, announced a schedule for the completion of work on the 12 fiscal year 2012 appropriations bills by Sept. 30, the end of this fiscal year. The plan includes marking up and approving each bill at both the subcommittee and full committee levels in the next few months before Congress’ August recess.

Rogers notes the schedule will help avoid a “perilous budget situa-tion” like the one that occurred earlier this year, which caused the fiscal year 2011 appropriations bill to be approved seven months late and “prompted arduous negotiations and threats of a government shutdown.

“I promised when I became chairman that I would complete our ap-propriations work on time and on budget, and I will do everything I can to fulfill that promise,” Rogers says. “Congress has a responsibility to the American people to complete this legislation before the end of the fiscal year so that vital programs and services can be funded adequately and sensibly.”

In addition, reflecting the need for significant budget reductions to help cut back the nation’s debt, Rogers announced “lean” funding limits for each of the 12 appropriations subcommittees.

The levels are based on the budget resolution the House passed last month and include a reduction of nearly $46 billion from last year’s levels for non-security programs. (See “Guest worker, labeling, budget bills moving through Congress,” April 22, 2011, in Cheese Market News’ article archive at www.cheesemarketnews.com.)

Much of the budget talk in Washington in recent weeks has focused on the bipartisan “Gang of Six” senators working toward a new funding compromise. While details of the group’s plan still have not been revealed, some of the group’s members have come forward with their own proposals.

Sen. Kent Conrad, D-N.D., one of the group’s members, this week presented a proposal to the Democratic caucus that contains an even split of spending cuts and tax hikes.

Conrad’s proposal calls for a 3 percent surtax on annual incomes

Volume 31 May 13, 2011 Number 16

— As con-cerns continue to mount over childhood obesity, more schools are looking to flavored milk bans as one way to cut sugar intake in kids’ diets.

The attack on flavored milk “seems to be flaring up again,” says Greg Miller, executive vice president of research, regula-tory and scientific affairs, National Dairy Council (NDC).

At the forefront of recent media coverage is Jamie Oliver,

Schools ponder flavored milk bans as industry fights back

a chef and host of the television show “Food Revolution.” On a segment to be aired on the show, Oliver filled a school bus with white sand to represent the amount of sugar Los An-geles Unified schoolchildren consume weekly in flavored milk.

On a recent appearance on the “Jimmy Kimmel Live!” talk show, Oliver praised a recent announcement from Los An-geles Unified Superintendent John Deasy that he plans to push to remove chocolate and strawberry milk from school menus.

School districts in Berke-ley, Calif., and Boulder Valley School District in Louisville, Colo., are among those that already have enacted flavored milk bans.

However, when flavored milk options were limited or altogether eliminated from school menus, elementary student milk consumption in 58 schools dropped by an aver-age of 35 percent, according to a recent study by the Milk Processor Education Program (MilkPEP).

“The thing is, flavored milk only provides about 3 percent of the sugar in kids’ diets,” Miller says. “There are plenty of other

places in kids’ diets to cut sugar intake, but don’t do it with a nutrient-rich product.”

Miller is referring to the nine essential nutrients found in milk, both flavored and un-flavored — calcium, vitamin D, riboflavin, phosphorus, protein, potassium, vitamin A, vitamin B12 and niacin.

“Considering kids might not make the switch to white milk, as is suggested by the (MilkPEP) study, limiting fla-vored milk doesn’t seem like the right move,” Miller says. “We’re hoping common sense will prevail.”

Miller adds that the 2010 Di-etary Guidelines for Americans recommend that individuals increase intake of fat-free or lowfat milk and milk products, such as milk, yogurt and cheese, as part of a healthy eating plan.

“The guidelines recommend kids drink more milk now, which lends itself to increased milk intake when they are adults, because adults aren’t drinking enough milk,” he adds.

Julie Buric, vice president of marketing for MilkPEP, notes one reason schools may be turning to ban flavored milk is that it provides a “quick fix” for school districts to show they are working to provide more

nutritious options for children.“The problem is that kids

need those nutrients and they aren’t getting enough of them elsewhere,” Buric says, noting that study results showed the most common replacements for flavored milk were water and juice — which also can have high amounts of sugar — not white milk.

“With all the variety out there in other beverages, it’s important that kids have op-tions when it comes to milk, too,” she says, adding that data show 70 percent of the milk chosen in schools is flavored. “When flavored milk leaves the lunchroom, its nine essential nutrients can leave with it.”

Connie Tipton, president and CEO of the Internation-al Dairy Foods Association (IDFA), this week sent a letter and background information highlighting the benefits of including flavored milk as an option in school lunch rooms to L.A. School Superintendent Deasy. Tipton also offered to hold a webcast briefing to provide details on industry research by MilkPEP.

“Dairy processors have invested millions of dollars to reformulate flavored milks so

USDA lowers 2011 forecast for milk production

Turn to FLAVOR, page 16 D

Turn to CCCD, page 14 D

WASHINGTON — Milk pro-duction in 2011 is projected at 195.4 billion pounds, down 500 million pounds from last month’s report and primar-ily reflecting slower growth in milk per cow despite more rapid growth in cow numbers,USDA says in its “World Agricultural Supply and Demand Estimates” (WASDE) report released this week. However, 2011

Turn to WASDE, page 6 DTurn to BUDGET, page 15 D

) Guest column: ‘Global mindset no longer optional.’ For details, see page 4.

) USDA seeks importers for National Dairy Board. For details, see page 5.

)��Retail WATCH Exclusive: Award-winning cheeses, marketing help Burnett Dairy grow its presence. For details, see page 7.

) Dairy progress ahead of 2012 Farm Bill unlikely. For details, see page 15.

INSIDE

Reprinted with permission from the May 13, 2011, edition of CHEESE MARKET NEWS®© Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

Reprinted with permission from the May 13, 2011, edition of CHEESE MARKET NEWS®© Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the May 13, 2011, edition of CHEESE MARKET NEWS®© Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

MARKET INDICATORS

2 CHEESE MARKET NEWS® — May 13, 2011

DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions.

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Class 4aClass 4b

Butterfat$ 2.1722/lb.$ 2.1722/lb.

SNF$ 1.3619/lb.*$ 0.7743/lb.

Equivalent $ 19.45/cwt.$ 14.34/cwt.

California Minimum PricesReleased May 9, 2011

*Reflects price change from numbers released by CDFA May 2. 2011, due to a revision in the monthly nonfat dry milk price.

Cheddar Cheese and Dairy Product Prices

Cheese 40-lb. Blocks:

*/Revised. 1/Prices weighted by volumes reported. 2/Sales as reported by participating manufacturers. Reported in pounds. More information is available by calling NASS at 202-690-2424.

4/16/11 4/30/11

Average price1

Minn./Wis. Other states U.S.Sales volume2

Minn./Wis. Other states U.S.

Cheese 500-lb. Barrels:Average price1

Minn./Wis. Other states U.S.Adj. price to 38% moisture Minn./Wis. Other states U.S.Sales volume2

Minn./Wis. Other states U.S.Moisture content Minn./Wis. Other states U.S.

4/23/11 5/7/11

$1.7178$1.6384$1.6453

967,33510,281,39311,248,728

$1.6725$1.7235$1.7021

$1.6074$1.6319$1.6217

4,460,9686,152,446

10,613,414

35.49%34.52%34.93%

$1.97305,703,959

*$1.5767*20,497,533

$.483810,305,511

$1.7330$1.6122$1.6202

694,9429,899,170

10,594,112

*$1.7068$1.7032

*$1.7051

*$1.6319$1.6107

*$1.6214

*4,319,9614,178,663

*8,498,624

*35.15%34.44%34.80%

$1.98806,019,091

*$1.572017,379,650

$.48079,061,311

$1.7061$1.6082$1.6173

1,024,6379,953,508

10,978,145

$1.7109$1.7067$1.7084

$1.6337$1.6152$1.6225

3,561,5495,349,1128,910,661

35.07%34.49%34.72%

$2.00714,191,051

$1.5987*11,926,717

$.476411,101,179

Butter:Average price1 U.S.Sales volume2 U.S.

Nonfat Dry Milk:Average price1 U.S.Sales volume2 U.S.

Dry Whey:Average price1 U.S.Sales volume2 U.S.

For the week ended:

$1.6858$1.6111$1.6182

1,047,04110,058,35611,105,397

$1.7032$1.6952$1.6991

$1.6290$1.6091$1.6187

4,987,4745,236,790

10,224,264

35.17%34.68%34.92%

$2.02266,338,342

$1.600021,907,716

$.489110,592,279

Total Contracts Traded/Open Interest

Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.*Total Contracts Traded/Open Interest reflect additional months not included in this chart.

MAY11JUN11JUL11AUG11SEP11OCT11NOV11DEC11JAN12FEB12MAR12APR12

13/1,799

48.7052.9554.0054.0052.5050.7550.0049.5047.2545.0044.0039.00

423331185151156141137124

17171811

DRY WHEY FUTURES* for the week ended May 12, 2011 (Listings for each day by month, settling price and open interest)

48.7052.5053.9054.0352.5050.0050.5049.0047.2545.0044.0039.00

423331187152159142138125

17171811

92/1,808

48.7052.5053.9054.0052.5050.0050.0049.0047.2545.0044.0040.00

423331187153160145139125

17171811

36/1,814

Fri., May 6 Mon., May 9 Tues., May 10 Wed., May 11 Thurs., May 12

48.5051.5053.0052.6551.5050.6348.5048.0046.2545.0044.0039.00

423329184151156141135124

17171811

104/1,794

48.5051.5052.2552.6051.5050.6348.5048.0046.2545.0044.0039.00

422316170137142127120110

17171811

4/1,695

Total Contracts Traded/Open Interest Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.*Total Contracts Traded/Open Interest reflect additional months not included in this chart.

MAY11JUN11JUL11AUG11SEP11OCT11NOV11DEC11JAN12FEB12MAR12

4/2,083

1.6511.7151.7521.7501.8051.7901.7501.7131.6661.6531.660

298378182149171208269247

313030

CHEESE FUTURES* for the week ended May 12, 2011 (Listings for each day by month, settling price and open interest)

1.6401.6631.7121.7291.7491.7601.7201.6951.6661.6531.660

302382194158176213276259

313030

80/2,141

1.6401.6731.7241.7481.7551.7681.7301.6951.6661.6531.660

302384195161184219279259

313030

Fri., May 6 Mon., May 9 Tues., May 10 Wed., May 11 Thurs., May 12

1.6551.7151.7521.7771.8061.7951.7601.7201.6661.6531.660

297378182148171208269247

313030

14/2,081

1.6581.7001.7501.7831.8061.7951.7601.7201.6661.6531.660

295378181148171208264247

313030

1/2,073 31/2,164

CLASS III PRICE (Dollars per hundredweight, 3.5% butterfat test)

YEAR2005200620072008200920102011

JAN 14.1413.3913.5619.3210.7814.5013.48

FEB 14.7012.2014.18 17.03 9.31 14.2817.00

MAR14.0811.1115.0918.0010.4412.7819.40

APR14.6110.9316.0916.7610.7812.9216.87

MAY13.7710.8317.6018.18 9.8413.38

JUN13.9211.2920.1720.25 9.9713.62

JUL14.3510.9221.3818.24 9.9713.74

AUG13.6011.0619.8317.3211.2015.18

SEP14.3012.2920.0716.2812.1116.26

OCT14.3512.3218.7017.0612.8216.94

NOV13.3512.8419.2215.5114.0815.44

DEC13.3713.4720.6015.2814.9813.83

(These data, which includes government stocks and is reported in thousands of pounds, are based on reports from a limited sample of cold storage centers across the country. This chart is designed to help the dairy industry see the trends in cold storage between the release of the National Agricultural Statistics Service’s monthly cold storage reports.)

ButterCheese

8,022127,098

+9-981

11,054124,249

+39 -666

-3,032+2,849

NC -1

Weekly Cold Storage Holdings May 9, 2011 On hand Week Change since May 1 Last Year Monday Change Pounds Percent Pounds Change

Monday Tuesday Wednesday Thursday Friday

Chicago Mercantile Exchange

May 9 May 10 May 11 May 12 May 13

Weekly average (May 9-13): Barrels: $1.6525(+.0150); 40-lb. Blocks: $1.6315(-.0075).Weekly ave. one year ago (May 10-14, 2010): Barrels: $1.3975; 40-lb. Blocks: $1.4150.

Cheese BarrelsPriceChange

Cheese 40-lb. blockPriceChange

Extra Grade NDMPriceChange

Grade A NDMPriceChange

Weekly average (May 9-13): Extra Grade: $1.6380(-.0900); Grade A: $1.6350(-.0070).

Grade AA ButterPriceChange

Class II Cream (Major Northeast Cities): $2.5700(+.1150)–$2.7790(+.0602).Weekly average (May 9-13): Grade AA: $1.9895(-.1000).

$1.6525-3/4

$1.6200-2 3/4

$1.9825-5 3/4

Sign up for our daily fax or e-mail service for just $104 a year. Call us at 608-288-9090.

$1.6400 NC

$1.6350NC

Cash prices for the week ended May 13, 2011

$1.6600NC

$1.6475NC

$1.6400NC

$1.6350-1/2

$2.0400-1

$1.6475-1/2

$1.6200NC

$1.9250-5 3/4

$1.6350-1/2

$1.6350NC

$1.6600NC

$1.6475NC

$1.6400NC

$1.6400NC

$2.0500-4 1/2

$1.9500 +2 1/2

$1.6425-1/2

$1.6225+1/4

$1.6350NC

$1.6300-1/2

Reprinted with permission from the May 13, 2011, edition of CHEESE MARKET NEWS®© Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

May 13, 2011 — CHEESE MARKET NEWS® 3

DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions.

For more information circle 1 on the FAST FAX form on page 16.

MARKET INDICATORSNEWS/BUSINESS

YOU CAN CUT YOUR HEDGING COSTS TRADE WITH GPC FOR $3.41 PER SIDE! Class III Milk ! Class IV Milk ! Whey ! Cheese! Cash Settle Butter ! NFDM ! Options! Trade Electronically $3.41 Side*

Call Free: 1-877-Gressel Southwestern Division: (602) [email protected]

* Plus front end fees, when applicable

There is a risk of loss in trading futures.

BROKERS OF DAIRY FUTURES & OPTIONS SERVING AGRI-BUSINESS SINCE 1933

JOE, ART, LEON & JARON GRESSEL

CHEESE FUTURESNOW TRADING.ARLINGTON, Va. — Cooperatives Work-

ing Together (CWT) recently accepted seven requests for export assistance from Dairy Farmers of America, Darigold and Foremost Farms to sell a total of 1,362 metric tons (3.0 million pounds) of Ched-dar and Monterey Jack to customers in Asia, North Africa, Central America and the South Pacific. The product will be delivered May through October.

CWT accepts seven requests, assists with 3 million pounds of cheese to be exported

In 2011, CWT has assisted members in making export sales of Cheddar, Monterey Jack and Gouda totaling 13,690 metric tons (30.2 million pounds) to 19 countries on four con-tinents.

CWT will pay export bonuses to the bidders when delivery of the product is verified by the submission of the required documentation. CMN

Dry Products* May 13, 2011

DRY BUTTERMILK(FOB)Central & East: $1.4400-$1.6200.(FOB) West: $1.4500(-5)-$1.5675; mostly $1.4500(-6)-$1.5450(+1/2).

EDIBLE LACTOSE(FOB)Central and West: $.3600-$.5600; mostly $.4300-$.5000(+2).

NONFAT DRY MILKCentral & East: low/medium heat $1.6000(+1)-$1.7000; mostly $1.6100(+2)-$1.6800(+4). high heat $1.6800(+3)-$1.7700(+2).West: low/medium heat $1.5400-$1.6600(+1); mostly $1.5900-$1.6200(+1). high heat $1.6200(+2)-$1.8100.Calif. manufacturing plants: extra grade/grade A weighted ave. $1.5463(+.0244) based on 13,807,532 lbs. Sales to CCC: 0 lbs.

WHOLE MILK POWDER (National): $1.9000-$1.9900(+2).

DRY WHEYCentral: nonhygroscopic $.4500-$.5150; mostly $.4550-$.5100.West: nonhygroscopic $.4800-$.5500(-1); mostly $.4800(-3/4)-$.5325(+1/2).(FOB) Northeast: extra grade/grade A $.4975(+1/2)-$.5500(-2 3/4).

ANIMAL FEED (Central): Whey spray milk replacer $.3500-$.4800.

WHEY PROTEIN CONCENTRATE (34 percent): $1.4500(+3)-$1.6300(-12); mostly $1.4700(+4)-$1.5500(+4).

CASEIN: Rennet $4.7600-$5.1400; Acid $4.7000-$5.1200.

*Source: USDA’s Dairy Market News

Percent change versus

*Source: U.S. Department of Commerce. For index, prices during 1982-84 = 100.

Cheese & related productsDairy & related products All Food

2 years +3.8 +6.4+3.7

1 year +4.6 +6.3+3.2

6 mo. +1.7 +4.2 +2.5

April 2011212.276209.707226.150

1 mo. +2.2 +1.7 +0.4

RETAIL PRICES (Consumer Price Index*)

International Dairy Markets May 13, 2011

Oceania Butter: 82 percent butterfat $4,500-$4,900. Cheddar Cheese: 39 percent maximum moisture $4,300-$4,550(-50).Skim Milk Powder: 1.25 percent butterfat $3,600(-100)-$3,900(-100).Whole Milk Powder: 26 percent butterfat $3,900(-50)-$4,200(-100).* Source: Dairy Market News. Prices reported in U.S. dollars per metric ton, F.O.B. port. To convert to price per pound: divide price by 2,204.6 pounds.

Western and Eastern Europe Butter: 82 percent butterfat $5,600(+100)-$6,050(+100); 99 percent butterfat $6,200(+150)-$6,600(+100).Skim Milk Powder: 1.25 percent butterfat $3,250(-25)-$3,600(-25).Whole Milk Powder: 26 percent butterfat $4,275(-75)-$4,500.Sweet Whey Powder: Nonhygroscopic $1,250(-50)-$1,350(-25).

Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. #The total contracts traded for Class III milk includes electronically-traded contract volumes.

Total Contracts Traded/Open Interest

Cash-Settled NDM

160.25162.00162.00161.75161.00159.00155.00149.50

340451432384263191119109

5/2,289

MAY11JUN11JUL11AUG11SEP11OCT11NOV11DEC11

Cash-Settled Butter

MAY11JUN11JUL11AUG11SEP11OCT11NOV11DEC11

Total Contracts Traded/Open Interest

443473515539387234199192

91/2,982

202.98204.00205.50206.75207.00207.00204.00196.00

160.25159.50159.50159.25158.50156.50153.00149.00

340456436390263191119109

24/2,304

202.98199.00200.50201.75202.00202.00199.00195.00

443478511563406247208191

134/3,047

160.25159.53159.50160.00158.43156.50152.00147.00

340456436400263191118112

19/2,316

200.00198.00198.00199.50201.73201.25199.00192.00

443475526593405250208193

96/3,093

Fri., May 6 Mon., May 9 Tues., May 10 Wed., May 11 Thurs., May 12

Fri., May 6 Mon., May 9 Tues., May 10 Wed., May 11 Thurs., May 12

Total Contracts Traded/Open Interest

Fri., May 6 Mon., May 9 Tues., May 10 Wed., May 11 Thurs., May 12

MAY11JUN11JUL11AUG11SEP11OCT11NOV11DEC11JAN12FEB12MAR12APR12MAY12JUN12JUL12AUG12SEP12OCT12NOV12DEC12

Class III Milk#

16.4917.3817.8117.9518.0117.8617.4316.9416.5516.2916.2516.2016.1916.1516.1516.1716.2216.1516.1016.02

5,3184,5403,5093,3763,4263,0842,7992,891

462386334190156150127119109111104

96

667/31,287

16.3616.7617.2417.5217.5617.5417.1916.7216.2716.1816.1116.1116.1316.1016.1116.1116.1616.1016.1016.02

5,3254,5783,5103,3873,4023,0892,8002,899

464395335192162156128121109113106

98

1,433/31,369

16.4516.9617.5117.7117.7217.7517.3616.8916.3716.3116.2016.2016.1716.1416.1216.2016.1316.1216.1216.05

5,3184,5953,5393,4063,4353,0982,8562,909

471406355214174158133132114118116113

1,546/31,660

Total Contracts Traded/Open Interest

Class IV Milk

MAY11JUN11JUL11AUG11SEP11OCT11NOV11DEC11JAN12

20.1020.3820.5020.4020.3920.1519.4818.9817.75

491577670660544471402303

2

20.1020.2420.0020.0020.0419.9519.4018.9517.75

491574670660544474402303

2

19/4,120

20.1020.2420.0020.0519.8519.9519.3318.9017.75

491574671682545475403304

2

0/4,120

CME FUTURES for the week ended May 12, 2011

Fri., May 6 Mon., May 9 Tues., May 10 Wed., May 11 Thurs., May 12

40/4,147

16.5217.2717.7517.8618.0617.9017.4516.9916.5416.2916.2516.2016.1916.1516.1516.1716.2216.1516.1016.02

5,3144,6533,4993,3683,4263,0862,8022,883

460385333190156150127119109111104

96

20.1020.4520.5020.5020.4620.1819.5318.9817.75

491577670660544471402303

2

160.25162.00162.00162.25161.00159.00155.00150.98

340451429384263191119109

202.98205.00206.50207.00208.25207.00204.00196.00

443473510527378217193193

163/2,934

4/2,286

4/4,120

360/31,371

16.5817.1917.6517.8618.0117.8817.4516.9616.5016.2516.2716.1216.1416.1216.1216.1716.2216.1216.1016.02

5,3184,6603,4993,3653,4263,0852,7982,883

459384328182152142118112109109103

96

673/31,328

20.1020.6020.5020.4520.4620.2019.5518.9817.75

491577670657544471402303

2

12/4,117

160.25162.00162.00162.50161.00159.00155.00150.98

340451429384263191119109

8/2,286

202.98208.00208.00208.00209.50209.00204.00196.00

443470490510359186178182

2/2,818

4 CHEESE MARKET NEWS® — May 13, 2011

Marc A.H. Beck is senior vice

president of export marketing at

the U.S. Dairy Export Council. He

contributes this column exclusively

for Cheese Market News®.

Perspective:Export Expertise

Global mindset no longer optional

NEWS/BUSINESS

E X P O R T T O O L K I T C M N E x c l u s i v e !

Rabobank Dairy Analyst Tim Hunt made an incisive observation during his presentation at USDEC’s April board of directors and membership meeting: The United States is more “exposed” to the level of dairy exports than it has been in the past, and specifically more exposed than the “boom” of 2007-2008. It is now imperative to protect volume and market share gains.

In previous years, the U.S. industry pulled back from world markets, direct-ed product to domestic needs, displaced imports if possible, or put “surplus” in Commodity Credit Corp. warehouses. Now, as imports have increasingly dwindled and exports steadily grown, it would be difficult and damaging to the industry to find a local home for all the product we manufacture or to ac-cumulate unsold product in warehouses.

In other words, the U.S. dairy in-dustry can no longer simply consider pursuing global opportunities — we must pursue them and protect volume

and market share gains. We must be a consistent supplier to global markets.

A look at the numbers reinforces this.

In 2010, we shipped a record 13 percent of U.S.-produced milk solids overseas. Sixty-eight percent of U.S. lac-tose, 55 percent of U.S. whey proteins, 47 percent of U.S. nonfat dry milk/skim milk powder (NDM/SMP), 8 percent of our butterfat and nearly 4 percent of U.S. cheese went to buyers beyond our borders. Through the last six months of 2010, nearly 60 percent of U.S. NDM/SMP was sold outside the United States.

U.S. industry expansion is being led by rising dairy appetites in China, Mexico, the Middle East, Southeast Asia and elsewhere. Subtracting foreign demand would stunt growth, quickly build large cheese, butter and powder stockpiles, and send U.S. prices reeling.

Commitment to policies and cor-porate practices that help us become consistent global suppliers is more

important than ever. And, fortunately, the industry has a roadmap on how to build global dairy market share and take advantage of rising world demand, much of it laid out by the Innovation Center for U.S. Dairy in its 2009 globalization report. (That report is now undergoing a “refresh,” due out in about six weeks to see if and how any key factor or conclusion requires revision. We will cover that refresh in a future column.)

Certainly commitment by U.S. sup-pliers is key, but the industry also needs the tools to compete and a level playing field on which to utilize them. Among the efforts that will help create such conditions are the following:

such as the pending deals with Colom-bia, Panama and South Korea, which after long delay, are moving tantalizingly close to a congressional vote.

scientific non-tariff trade barriers by creating a better U.S. system to ad-dress such issues and pursuing tougher international guidelines to minimize instances before they occur.

futures markets and risk management tools to allow the U.S. industry to cope with the rising volatility that is inherent with a fine balance in global demand and supply.

support programs to remove internal constraints to pursue global markets and position the U.S. industry to be as nimble and flexible as it needs to be to succeed.

The latter two have broad implica-tions for the entire industry, but par-ticularly impact the critically important NDM/SMP category.

The United States has historically been an “opportunistic” milk powder

exporter, filling the gaps when other suppliers run short and world prices are higher than domestic, and abandoning overseas customers when prices dip below internal prices or are less condu-cive. This means U.S. NDM/SMP export volumes can vary sharply from year to year, particularly because overseas buy-ers often see the United States as backup to the primary sources in Oceania and Europe. This lack of reliability comes at a cost.

With its basis in the byzantine U.S. classified milk pricing system, price discovery methods for U.S. powder provide incomplete and often inac-curate information to U.S. suppliers. Plus, the numbers it does provide are slow to come, prohibiting producers and manufacturers from reacting in a timely manner to price signals.

We have in place futures markets to manage risk; however, the current pric-ing system makes hedging unworkable. The government support price, and its susceptibility to changes through politi-cal means, also undermines use of risk management tools.

History has shown that without adequate risk management tools, companies have incurred large losses in writing down inventory value when the global market declines.

The lack of a transparent and ef-ficient price discovery system puts U.S. suppliers at a competitive disad-vantage with magnified volatility risk at precisely the time the United States is positioning itself to be the world’s leading NDM/SMP supplier.

Global markets are an integral part of the business and to keep them growing, the industry must continue to adapt, which is not always an easy or smooth process. But the stakes are high and the prize worth the effort. CMN

WASHINGTON — The U.S. Environ-mental Protection Agency (EPA) re-cently announced that after a thorough data review showing declining radiation levels related to the Japanese nuclear incident, it has returned to the routine RadNet sampling and analysis process for precipitation, drinking water and milk.

EPA’s RadNet system of more than 100 stationary monitors will continue to provide EPA scientists near-real-time data on the slightest fluctuations in background radiation levels.

Due to the consistently decreasing radiation levels, EPA is evaluating the need to continue operating the addi-tional air monitors deployed in response to the Japan nuclear incident.

EPA says it will continue to analyze air filters and cartridges from all air

U.S. Environmental Protection Agency has returned to ‘routine’ sampling for radiation

monitors as they arrive at the laboratory and will post data as available.

In accordance with normal RadNet protocol, EPA will be analyzing milk and drinking water samples on a quarterly basis and precipitation samples as part of a monthly composite. The next round of milk and drinking water sampling will take place in approximately three months.

EPA says it is important to note that all of the radiation levels detected by RadNet monitors and sampling have been very low, are well below any level of public health concern and continue to decrease over time.

EPA says it continues to work with federal partners to monitor the situa-tion in Japan and stands prepared to accelerate radiation sampling and analysis if the need arises. CMN

VISALIA, Calif. — California Dairies Inc. (CDI) recently sent a letter to the California Department of Food and Agriculture’s (CDFA) Dairy Marketing Branch to request a public hearing to consider changes to the state’s Class 4a pricing formula. The letter is signed by Eric M. Erba, CDI vice president of administrative affairs.

“As you know, the manufacturing cost allowance and butter f.o.b. price adjuster for Class 4a have not been ad-justed since 2008,” Erba says in the let-ter. “Since that time, data collected and published by the California Department of Food and Agriculture has indicated that adjustments are warranted.”

Currently the formula for milkfat is “Fat = (CME AA Butter Price - $0.0309 - $0.1560) x 1.2” and the formula for milk solids-non-fat is “SNF = (California NFDM Price - $0.1698) x 1.0.”

CDI proposes that the formula for

CDI petition seeks change to price formulamilk fat be changed to “Fat = (CME AA Butter Price - $0.0485 - $0.1811) x 1.2,” and that the formula for milk solids-non-fat be changed to “SNF = (California NFDM Price - $0.1984) x 1.0.”

The proposal amends the Class 4a pricing formula by increasing the butter and nonfat dry milk manufacturing cost allowances to the weighted average cost for both commodities, as published in November 2010.

These proposed changes are con-sistent with the objectives stated in previous hearings, that the Class 4a formula should reflect the most cur-rently-available cost-justified changes, the letter says.

CDFA has 15 days from its receipt of the letter to announced whether a hearing date will be scheduled.

For more information, visit www.cdfa.ca.gov/dairy/dairy_hearings_matrix.html. CMN

Reprinted with permission from the May 13, 2011, edition of CHEESE MARKET NEWS®© Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the May 13, 2011, edition of CHEESE MARKET NEWS®© Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

May 13, 2011 — CHEESE MARKET NEWS® 5

For more information circle 2 on the FAST FAX form on page 16.

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WASHINGTON — USDA in Tuesday’s Federal Register announced it is seek-ing nominations from dairy importers and organizations that represent dairy importers to serve on the National Dairy Promotion and Research Board.

“Through their representation on the dairy board, importers will be able to participate in the development of programs to expand demand for dairy products and dairy ingredients in the United States,” says Rayne Pegg, administrator for USDA’s Agricultural Marketing Service (AMS).

Under new program parameters, the Dairy Promotion and Research Board says initially, importers will be represented on the dairy board by two

USDA is seeking importer nominees for National Dairy Promotion and Research Boardimporter members appointed by the Secretary of Agriculture. Thereafter, the importer representations on the dairy board will be reviewed at least once every three years and adjusted to reflect the volume of imports relative to the domestic production of milk.

The length of a member’s term is three years. In order to properly coordi-nate the terms of importers with those of dairy producer members and to stagger the two terms, initially one importer member will serve a term ending Oct. 31, 2013, and one importer member will serve a term ending Oct. 31, 2014.

Importer nominees must be importers of dairy products and will be subject to the assessment to fund the National Dairy

Promotion and Research Program. Nomi-nations may be submitted by individual importers of dairy products or by organi-zations representing dairy importers, as approved by the Secretary of Agriculture.

Individual importers submitting nominations to represent importers on the dairy board must establish, to the satisfaction of the secretary, that the person submitting the nomination is an importer of dairy products.

Importer organizations must ad-equately represent importers of dairy products under the primary determining considerations of whether its member-ship consists primarily of importers of dairy products and whether a substantial interest of the organization is in the im-

portation of dairy products. USDA notes an importer is defined as a person that imports dairy products into the United States as a principal or as an agent, broker or consignee of any person who produces or handles dairy products outside of the United States for sale in the United States, and who is listed as the importer of record for such dairy products.

Nominations must be submitted by June 10, 2011.

For nominating forms or more information, contact Whitney A. Rick, chief of Dairy Programs, Pro-motion and Research branch, at 202-720-6909; e-mail: [email protected] or visit www.ams.usda.gov/dairyimportassessment. CMN

— Zip-Pak, a resealable solutions and equipment company based in Manteno, Ill., recently announced the introduction of its new Package Realization Team. The new ap-proach helps brand owners around the world transition from existing package styles to consumer-preferred resealable flexible formats as well as enhance their existing packaging.

The announcement comes in con-junction with the 2011 Interpack trade show for the packaging sector and related processing industries, being held May 12-18 in Düsseldorf, Germany.

(For more on Zip-Pak’s products, visit our New Products section at www.cheesemarketnews.com.)

Zip-Pak’s Package Realization Team can solve a variety of challenges, such as incorporating resealable technol-ogy into an existing package line, says Robert E. Hogan, director of global marketing at Zip-Pak.

Hogan notes that Zip-Pak identified a need in the marketplace to help brand owners hasten innovation in resealable packaging.

“Our experience is that a systems or team approach is the most effective way to do that with consumer package goods (CPG) companies and retailers,” he says. “The Package Realization Team leverages both our internal resources at Zip-Pak — sales, marketing, product de-velopment, operations, machinery and technical service — and the expertise of our OEM (original equipment manu-facturer) and film converter partners to ensure that any packaging challenge is being approached from all angles.”

As a zipper supplier with an in-house equipment division, Zip-Pak Systems, the company can develop custom retrofit attachments to minimize investments in new machinery, Hogan says. Zip-Pak’s Package Realization Team also can provide advice on package design based upon years of consumer research. The company invests in research to support the sustainability benefits of resealable flexible formats over rigid alternatives and can guide brands in improving their eco-profiles, he says.

Zip-Pak debuts Package Realization Team For each unique project, a team is

assembled to consult with CPG compa-nies and retailers on how to implement cost-effective and efficient resealable closure solutions. Team configura-tions vary according to project needs but may include representatives from sales, marketing, product development, operations, machinery and technical service.

“While Zip-Pak’s innovative tech-nologies have served to meet the needs of consumers for decades, it is ultimately the expertise of our people that makes the difference in solving packaging challenges for brand owners around the world,” Hogan says. “Further, our global partnerships with OEMs and film converters enable us to act as a single point of contact throughout develop-ment projects, ensuring the closure feature on the final package meets consumer demand for convenience and ease of use.”

The Package Realization Team first works with the customer to determine the ideal package format in order to better decide whether to implement new machinery or apply retrofit technology.

Next, the team consults with the brand owner and converter to deter-mine the appropriate film structure before making a recommendation on a press-to-close or slider closure. The team then can install the retrofit or work with the OEM to incorporate resealable capability into a new machine.

Lastly, Zip-Pak evaluates the exper-tise level of the operator and conducts customized training.

“Zip-Pak’s team approach has evolved over the last several years, and with increasing pressure on brand owners to deliver innovative packaging to consumers, the timing was right to formalize our process,” Hogan says. “The new Package Realization Team will simply give our customers an added level of assurance that the right people are collaborating with them to achieve an optimal solution.”

For more information, v is -i t w w w. z i p p a k . c o m . C M N

— Danisco has expanded its range of Yo-Mix drink-ing yogurt cultures to better cater to local market flavor and texture profiles.

Danisco’s laboratories have devel-oped specific methods to characterize drinking yogurt and better support the dairy industry, now having the ability to select the most suitable ingredients to fit each type of drinking yogurt worldwide.

“Drinking yogurt can be a quick, easy and convenient product to consume, a healthy snack or even a meal replace-ment which has become part of the daily diet in many countries around the world,” says Sonia Huppert, Yo-Mix global business director. “From salty to sweet, it offers a diverse consumer choice and the best opportunity to in-novate within the dairy industry.”

“With our global presence and local application centers, we are consumers

Danisco expands range of Yo-Mix culturesin each local market. This is key to understanding consumer and industry desires and ensuring we develop the perfect local drinking yogurt flavor and texture profile,” Huppert says. “With our ingredients diversity and expertise, we can complement your Yo-Mix yogurt cultures with other Danisco value-added ingredients, such as Grindsted Pectin stabilizers, HOWARU premium probiotics or XIVIA sustainable xylitol, to name a few.”

According to market research com-pany Euromonitor, drinking yogurt rep-resents one-third of all yogurt produced in the world. Research also indicates it represents the fastest growing yogurt category within past years, and this trend is set to continue into the future.

For more information, contact Richard Donovan, communications manager, Danisco BioActives, at [email protected]. CMN

Reprinted with permission from the May 13, 2011, edition of CHEESE MARKET NEWS®© Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

6 CHEESE MARKET NEWS® — May 13, 2011

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WASDEContinued from page 1

EVENTS

projection still is on track to surpass the 192.8 billion pounds produced in 2010.

Milk production in 2012, meanwhile, is forecast at 198.7 billion pounds. 2012 is forecast to increase over this year as the decline in milk cows is expected to be offset by growth in milk per cow, says this month’s WASDE report which includes the report’s first projections for 2012.

The report says that although herd inventories are expected to expand during 2011, weakening milk prices and relatively high feed costs will set the stage for the national dairy herd to contract slightly in 2012. Growth in milk production also reflects an additional milking day in 2012 due to leap year.

Commercial exports are forecast to increase as the global economy im-proves. Imports will be lower as domes-tic supplies increase. With increasing domestic production, 2012 prices are forecast lower than 2011.

In its report, USDA projects the 2011 cheese price will average $1.670-$1.720 per pound, up a half cent from its forecast last month. The 2012 cheese price is forecast to average $1.595-$1.695.

The 2011 butter pice is forecast to average $1.840-$1.920, up from the pro-jection of $1.735-$1.815 in last month’s report. The 2012 butter price forecast is $1.605-$1.735.

USDA projects the nonfat dry milk (NDM) price in 2011 will average in the $1.480-$1.520 range, up from $1.375-$1.415 last month. In 2012, USDA forecasts the NDM price to average $1.360-$1.430.

The dry whey price in 2011 is forecast to average $0.450-$0.480, up 4 cents from last month’s forecast. The 2012 projection is for the dry whey price to average $0.405-$0.435.

Reflecting the increase in projected commodity prices vs. last month’s report, the Class III milk price in 2011 now is forecast at $16.45-$16.95 per hundredweight, up 35 cents from last month. The Class III price for 2012 is forecast at $15.35-$16.35.

The Class IV milk price in 2011 is forecast at $18.40-$19.00, up from $17.05-$17.65 in last month’s WASDE report. The 2012 Class IV price is pro-jected at $16.30-$17.40.

The 2011 all-milk price is forecast at $18.95-$19.45, up from $18.15-$18.65 last month. The all-milk price in 2012 is projected to average $17.35-$18.35. CMN

Sassy Cow to mark 3rd anniversary May 21-22 — Sassy Cow

Creamery, an ice cream, fresh milk and farmstead cheesemaking facility, will mark its third anniversary with a Farm Adventure Weekend May 21-22 in Columbus, Wis.

The event is open to all community members. It will feature creamery and farm tours, coloring, mooing and ice cream eating contests, pedal tractor and hayrides, the chance to be a “farmer for a day,” pictures with a baby calf and more.

Event coordinators note all activi-ties are free and family-friendly.

For additional information, con-tact Kara Kasten-Olson at 608-

445-2010, e-mail: Kara@Sassy cowcreamery.com or visit www.sassycowcreamery.com. CMN

Innovation Center to present new findings at IDFA’s Dairy Sustainability SymposiumWASHINGTON — The Innovation Center for U.S. Dairy will kick off the International Dairy Foods Association (IDFA) Dairy Sustainability Symposium May 25 with an update on the U.S. Dairy Sustainability Commitment and prog-ress made on initiatives to reduce the dairy industry’s carbon footprint and build business value.

The Dairy Sustainability Symposium will be held May 25-26 at The James Hotel in Chicago.

The center’s presentation will high-light the industry’s scientific research efforts including life cycle assessments for fluid milk and cheese, and how these

findings will benefit the entire diary industry. Speakers from the center will include Ying Wang, director of research, and Gail Barnes, vice president of tech-nology and packaging. Barnes will be joined by industry experts who will dis-cuss energy efficiency and best practices.

The discussion also will introduce a new sustainability initiative that responds to the growing interest and activity in sustainability reporting and product score carding.

For more information or to register for the Dairy Sustainability Symposium, visit www.idfa.org/events--trade-show/inter-active-event-calendar/details/97. CMN

Reprinted with permission from the May 13, 2011, edition of CHEESE MARKET NEWS®© Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the May 13, 2011, edition of CHEESE MARKET NEWS®© Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

CHEESE MARKET NEWS®

Retail WATCHN E W S & M A R K E T I N G I D E A S T O H E L P S E L L M O R E C H E E S E

May 13, 2011 — CHEESE MARKET NEWS® 7

Also in Retail WATCH: ‘Joy of Cheesemaking’ published … Page 8 Alouette unveils light spreadable cheese … Page 10

Award-winning cheeses, marketing help Burnett Dairy grow its presence

Turn to BURNETT DAIRY, page 9 D

— Burnett Dairy Cooperative, an award-winning pro-ducer of Wisconsin cheese, continues to focus on developing a fresh new look for its product labels, highlighting the cooperative’s heritage as well as the award-winning Master Cheesemakers that craft the different varieties.

“We are developing new labeling for our Fancy brand — it’s so we can demonstrate the heritage, quality and success of our cooperative,” says Tasha Burilini-Olson, market and retail man-ager, Burnett Dairy Cooperative.

Burnett Dairy has its roots in the FANCY FROMAGE — Burnett Dairy Cooperative’s Fancy brand packaging is getting a make-over with new labels designed to highlight the dairy’s history of award-winning cheeses. The new label features an award-winning medallion,which represents similar awards that adorn the creamery’s walls.

Branstad and Wood River creameries, which boast a long tradition of serving dairy producers.

The Branstad Creamery was the third creamery in Burnett County and started operations in May 1897. The Wood Lake Creamery (renamed the Wood River Creamery) started in June 1896. The cooperative still uses the Fancy brand created by Wood River Creamery.

In the 1960s both creameries decided to merge and turn toward the more profitable venture of making cheese — Mozzarella in particular.

The official start date of the coopera-tive was in 1966 when the two creameries were closed. The Alpha location (named after the Alpha De Laval cream separa-tor) was converted to cheese manufac-turing with the assistance of a $25,000 grant from the state of Wisconsin.

As Burnett Dairy grew so did its

also working more with local markets to do demonstrations within the store with Master Cheesemakers there to introduce the new cheeses as well as our tried-and-true cheeses. It’s a great opportunity to talk with customers, answer questions and find out what the market is looking for.”

In addition, the cooperative is en-hancing its presence online, expanding its website to include more photos as well as several pages that should “go live” within the next year. The new pages will be designed for specific sectors including one for foodservice customers as well as some for the Ag Division.

These marketing efforts have paid off for Burnett Dairy, and Burilini-Olson cites recognition among distributors as a major goal that outreach has helped to accomplish.

“Making sure distributors have the right knowledge is our responsibility. They need to know the wide range of what we are capable of making — some thought we only made what they sold, which was limited to a smaller selection of our product offering,” says Burilini-Olson, noting that the cooperative’s push in this area has resulted in a significant improvement in market awareness. “One thing we pride ourselves in is that we make to order; many times we can meet specifics that distributors need for a particular order.

“We can really customize what they’re looking for, and it’s nice to know they

“One thing we pride ourselves in is that we make to order; many times we can meet

specifics that distributors need for a particular order.”

Tasha Burilini-OlsonBURNETT DAIRY COOPERATIVE

cheesemaking ability, leading the co-op to add Provolone, Cheddar and Colby to its mix. The cooperative has since expanded its lineup even further to include varieties such as String, Edam, aged Cheddar, specialty yogurt cheese, a variety of flavored Strings and a cus-tom cheese called Alpha’s Morning Sun created by Master Cheesemaker Bruce Willis. These products are delivered to pizzerias and retail stores through out the United States.

The cooperative also runs a store and sells cheese via the internet.

The new label for the Fancy brand cheese will highlight the dairy’s his-tory of award-winning cheeses and the masters who craft them. The new design features an award-winning medallion, which represents the awards that adorn the creamery’s walls.

“We also have added the story of where the dairy is and why dairy is so important to the area,” Burilini-Olson says, noting the labels also highlight the awards the cooperative has won.

In addition, she says that the new la-bel is designed to create a look consistent between the cheeses under one brand.

“In the past, we created labels as the cheeses evolved to serve that market — we’re consolidating those branding ideas,” Burilini-Olson says.

Fancy brand cheeses include Moz-zarella, Colby, Monterey Jack, Fancy Jac, Provolone and Cheddar — all of which are Wisconsin Master’s Mark cheeses made by Wisconsin Master Cheesemakers Steven Tollers and Bruce Willis.

Mozzarella String is available in Natural, Hot Pepper, Smoked, Onion, Salsa and String Whips. All of the Fancy brand and Wood River Artisan cheeses are available in both retail and foodser-vice cuts including shredded and diced blends. Available sizes include 1-ounce individually-packaged String, 8- and 12-ounce packaged String, 12-ounce overwrap packaged natural String, and block cheeses available in various retail blocks.

In addition to the new label, Willis is working to develop new cheeses for the cooperative’s artisan line, Wood River Creamery. Burilini-Olson says the new cheeses are inspired by the existing custom cheeses the cooperative already

makes.“What our Master Cheesemakers are

working on is developing custom cheeses with variation,” Burilini-Olson says. “Our artisan line features one-of-a-kind cheeses, and we’re adding additional ones that are not just replications of what we have.”

In order to get the word out about the new label and the new artisan cheeses, Burnett Dairy is working closely with the Wisconsin Milk Marketing Board (WMMB), including coverage of the new label in WMMB’s special flier.

The cooperative also has shared a booth with WMMB at several trade shows throughout Wisconsin, which has provided the opportunity for Burnett Dairy to introduce some of its new artisan cheeses to the industry.

“We also have been working on pro-motional and coupon campaigns — it’s the first time we’ve branched out and done that,” Burilini-Olson says. “We’re

“We have control of our product from the

beginning of a cow’s life to the final product. Not

many can say that.”

Tasha Burilini-OlsonBURNETT DAIRY COOPERATIVE

Reprinted with permission from the May 13, 2011, edition of CHEESE MARKET NEWS®© Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

8 CHEESE MARKET NEWS® — May 13, 2011 R E T A I L R O U N D - U P

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BURLINGTON, Vt. — A new book by two Vermont Institute for Artisan Cheese (VIAC) staff explains the process of chee-semaking and offers pairing suggestions, recipes incorporating cheeses and other resources for readers.

The Joy of Cheesemaking: The Ulti-mate Guide to Understanding, Making, and Eating Fine Cheese was written by VIAC program coordinator and admin-istrative director Jody M. Farnham and VIAC master cheesemaker Marc Druart. The book is written for both beginners and more advanced students, from home cheesemakers to chefs to entrepreneurs considering cheesemaking for profit.

“We have packed this book full of helpful information and ideas, from the basic steps in how to make cheese, so the

VIAC’s Jody Farnham and Marc Druart explain ‘Joy of Cheesemaking’ in new guidebookhobbyists, enthusiasts, and professional cheesemakers alike will be able to use the practical science here in these chap-ters to get started in cheesemaking,” Farnham says in the book’s introduction.

The authors begin with the basics of cheese classification and continue to explain the seven major steps in the cheesemaking process, from starter cul-tures to salting and brining, with specific instructions to make cheeses including Gouda, Camembert and fresh Chèvre.

The book also includes suggestions on pairing cheeses with foods, beer and wine; recipes such as “Stuffed Smoky Blue Cheese Burger” and “Quinoa Salad with Sautéed Cauliflower, Bacon and Chèvre;” basics of building a diverse cheese board including a cutting chart

and the proper way to taste cheese; and a full glossary and listing of helpful resources.

Additionally, the authors provide readers with a peek inside the work-shops of top artisan cheese farms in the country, explaining how they create their cheeses and how the locavore movement is encouraging these family-owned busi-

nesses. The Joy of Cheesemaking has 244

pages including several color pictures and charts, and it is available in paperback for $14.95 from Skyhorse Publishing Paperback, New York. For more information, contact Skyhorse Publishing Inc., 212-643-6816, or visit www.skyhorsepublishing.com. CMN

— Norseland Inc. — part of TINE SA, Norway’s largest producer, distributor and exporter of dairy products — recently announced the launch of its new Jarlsberg USA website, www.jarlsber-gusa.com, designed in conjunction with Pedone Advertising, New York, N.Y.

The company notes that as part of TINE’s global positioning initiative, Jarlsberg USA will focus on the brand’s key characteristics: premium quality, unique flavor and versatility.

“We’re very pleased with the outcome of Jarlsberg USA’s social media endeavor, orchestrated by our marketing-advertis-ing specialist Valerie Liu,” says Deanna Finegan, sales and marketing manager for Norseland. “It’s exciting to now have in place a comprehensive program for America’s No. 1 specialty cheese that will

Norseland announces launch of Jarlsberg USA website, new social media program

support retail and a variety of culinary resources while also encouraging an ongoing dialogue with Jarlsberg fans.”

Finegan says the Jarlsberg USA website seamlessly shuffles through 10 oversized shots of Jarlsberg and food pairings. Easy-navigation tabs highlight brand history and varieties, recipes and promotions.

The site also links directly to Jarls-berg’s new Facebook, Twitter and Flckr pages for daily interaction between the brand and followers. A community blog also is in the works that will allow for in-depth conversation; guest chef, cookbook author and food blogger appearances; cheese-related news; instructional vid-eos; trivia; and other contests.

For more information, v is -it www.jarlsbergusa.com. CMN

The Wisconsin Milk Marketing Board (WMMB) has an-nounced it is celebrating real dairy prod-ucts during June Dairy Month with its “Taste the Dairy Difference” campaign. The campaign includes a collection of new recipes, a website and mobile web-site with a dairy farm breakfast locator map, a retail display with free recipe brochures and a smartphone application to access additional recipes.

WMMB celebrates June Dairy Month with ‘Taste the Dairy Difference’ campaign

“The ‘Dairy Difference’ promotion celebrates the simplicity of real dairy in recipes that use just a few of the very best ingredients,” says Dave Bavlnka, vice president of advertising, WMMB. “The pure and defining taste of dairy products — such as sour cream, yogurt and cottage cheese — makes them all especially good. And to further simplify, we’ve integrated innovative technology into this year’s campaign so consum-ers can easily access recipes and farm breakfast information.”

The collection of 12 new recipes range from homey to sophisticated, WMMB says, with recipes ranging from yogurt in a rich French toast batter to sour cream as a tangy base of an Indian curry salmon marinade and topping. Six recipes are included in a free recipe brochure available in displays at dairy breakfasts and participating Wisconsin supermarkets. All 12 recipes are avail-able at TheDairyDifference.com.

The interactive dairy breakfast locator map on the ‘Dairy Difference’ website has been updated this year to be searchable by county and date. Also new this year is a mobile version of the website, which will allow visitors using a smartphone to easily access recipes and use the dairy breakfast locator map. A QR code on promotional materials in retail outlets will lead directly to the mobile site, where consumers can access additional recipes. A QR code is a unique barcode that lets customers access a mobile website on any supported phone with a tag reader.

For more information, visit www.TheDairyDifference.com. CMN

Reprinted with permission from the May 13, 2011, edition of CHEESE MARKET NEWS®© Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the May 13, 2011, edition of CHEESE MARKET NEWS®© Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

May 13, 2011 — CHEESE MARKET NEWS® 9 R E T A I L I N G P E R S P E C T I V E S

are now more aware of everything that’s available here — the product fliers have been key for us,” she adds.

Also fueling the increase in demand for Burnett Dairy products is the co-operative’s strong showing at recent competitions. At the U.S. Champion-ship Cheese Contest, the cooperative received best of class honors for its Mozzarella String and mild Cheddar. The co-op also received second place finishes for its smoked String and aged Provolone as well as a third place finish for its aged Provolone.

Burnett Dairy also did well at the World Dairy Expo Dairy Product Championship Contest, receiving a first for its String as well as its hot pepper String, a second place for its flavored String, and a third for its plain String.

In addition, at the 2010 Wisconsin State Fair, Burnett Dairy received a first place finish for its String, a second place for its plain and pepper String, and a third for its plain String.

With the recent accolades and ramped up marketing efforts, Burnett Dairy is leasing additional space at a factory located in Edgar, Wis., to help meet demand for its products. The cooperative also has a new expansion project underway.

BURNETT DAIRYContinued from page 7

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Introducing our Fancy Brand:

All offered in a variety of flavors & sizes

2011 U.S. Championship Cheese Contest Winners:BEST OF CLASS:

BEST OF CLASS:

SECOND PLACE:

Burnett Dairy Cooperative11631 State Road 70

Grantsburg, WI 54840Phone: (715) 689-2468

Fax: (715) 689-2135www.burnettdairy.com

For questions and sales information, please email [email protected]

It’s not just what we do... It’s who we are!

It’s not just what we do... It’s who we are!

WOOD RIVER ROUNDUP — Wood River Creamery cheeses are crafted in small vats by Wisconsin Master Cheesemakers Steven Tollers and Bruce Willis. Currently, Willis is devel-oping new cheeses for the artisan line which are inspired by the existing custom cheeses.

The expansion will focus on increas-ing the plant’s capacity to make cheeses, and will involve adding another full make line to produce block cheeses, including a small-vat artisan line.

The project also will involve the ad-dition of coolers, specific aging storage, an increase in shred capacity and an expansion of the existing retail store in Alpha, Wis.

“Demand for block cheeses from us is more than we can fill right now,” Burilini-Olson says. “We primarily do pasta filata cheeses, so we need the additional space to meet demand for block market artisan and other cheeses.”

Currently, Burnett Dairy is in the planning and designing stage, work-ing to obtain the necessary permits. Burilini-Olson says ideally the co-op will be ready to break ground before the end of the year.

In the year to come, the cooperative is looking to launch more campaigns featuring literature and advertise-ments geared toward Burnett Dairy’s long history as a farmer-owned coop-erative.

Another important aspect the co-op will continue to highlight is its Ag Division, which offers a wide variety of services including crop protection, dairy farm nutritionists, planting advice and new technology for farmers.

“We have great farmers, but they shouldn’t be expected to have a Ph.D.

in chemistry — that’s not what it takes to be a good farmer. We provide these services to farmers free of charge,” Burilini-Olson says. “We have control of our product from the beginning of a cow’s life to the final product. Not many can say that. This is going to be a huge campaign for us this year, and we hope that it can serve as an example for how to assist farmers in

creating the finest and most consis-tent milk. We continue to focus on and appreciate what they do well, and how to make it better.”

In addition, Burnett Dairy has a scholarship program specific to encouraging the ag community to continue schooling in agriculture. The cooperative uses retired equity to award more than $35,000 annually. CMN

— YoCream Inter-national Inc. recently announced the launch of Activia Frozen Yogurt, a soft-serve frozen yogurt that the company says helps naturally regulate the diges-tive system.

With 100 calories per 4 ounces, nonfat Activia Frozen Yogurt offers consumers another way to enjoy Activia as a dessert or snack, YoCream officials say.

The company is offering the new prod-uct in four flavors: Vanilla, Strawberry, Peach and Blueberry.

YoCream will debut Activia Frozen Yogurt at the National Restaurant As-sociation show May 20 in Chicago.

“The flavor profile of Activia Frozen

YoCream International launches Activia Frozen Yogurt; available in four flavors

Yogurt tastes more like refrigerated yogurt and will have a strong appeal to consumers that enjoy Activia yogurt every day,” says Suzanna Gardner, director of marketing, YoCream. “Our new relationship with Danone and The Dannon Co. allows us the opportunity to bring additional products like Ac-tivia Frozen Yogurt to consumers in the places they consume desserts and snacks away from home.” (See “Danone to acquire YoCream International,” Nov. 26, 2010, in Cheese Market News’ article archive at www.cheesemarket-news.com.)

For more information, v is -it www.yocream.com. CMN

CHICAGO — Research firm Mintel says that following recent consumer trends to buy and eat local, the “local” claim on U.S. restaurant menus has grown by 13 percent in the past year.

Mintel Menu Insights notes that, as identified in its 2011 foodservice trends, there seems to be a push toward indig-enous ingredients, taking the local trend a step further.

“This extends beyond geography to in-clude other important attributes such as ‘seasonal,’ ‘traditional’ and ‘authentic,’ especially as it relates to global cuisines,” says Kathy Hayden, foodservice analyst at Mintel. “Serving the best of the season communicates freshness and a ‘get it now’ urgency.

Mintel Menu Insights says local food trend taking new form in U.S. restaurant chains

“Perhaps most importantly, indig-enous ingredients help the migration away from overly processed food to-ward more recognizable and simpler ingredients sourced closer to home,” she adds.

Mintel says the trend also recognizes that many consumers have come to know the best sources for some regional dishes and ingredients, noting Maine lobster and New Orleans po’boys as some examples.

“With more than 58 percent of restaurant-goers interested in seeing more locally grown products on menus, we can expect restaurant chains to re-spond with fresh, innovative offerings to meet this demand,” Hayden says. CMN

Reprinted with permission from the May 13, 2011, edition of CHEESE MARKET NEWS®© Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

10 CHEESE MARKET NEWS® — May 13, 2011

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T H E C H E E S E T A B L E

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Awarded Best Brie in the United States Again! When You Think Quality; Think Reny PicotLocated near the eastern shores of Lake Michigan in Benton Harbor, MI, Old Europe Cheese was founded over 20 years ago. Old Europe Cheese combines state-of-the-art equipment and technology with time-tested European traditional techniques and recipes to make award winning, handcrafted artisan cheeses.

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CABOT, Vt. — Cabot Creamery Coop-erative is helping to spread the world about celiac disease — an auto-immune condition that affects more than twice as many women as men — during National Women’s Health Week, May 8-14.

“In keeping with this year’s National Women’s Health Week theme of ‘It’s Your Time,’ Cabot is helping to spread the word about celiac disease in honor of National Celiac Awareness Month in May,” says Candace Karu, Cabot’s lifestyle commentator.

According to Regan Jones, Cabot’s registered dietitian, since more than 3 million Americans, more than half of them women, have celiac disease, Cabot specifically targeted the topic of celiac and gluten-intolerance this month.

Cabot Creamery Cooperative posts recipe ideas for celiac awareness month in May

Cabot notes that those suffering from the disease still can eat fruits, yogurts, chips and natural cheese, such as Cabot’s Serious Snacking .75-ounce Cheddar mini bars or Cabot Greek-style Yogurt.

Cabot also is offering consumers vari-ous recipes with gluten-free ingredients, such as Cabot Pepper Jack Stuffed Pota-toes, Spicy Shrimp and Cabot Cheddar Spinach Salad, and Crustless Asparagus and Rosemary Mini-Quiche.

In addition to these gluten-free reci-pes, Cabot also has created a Gluten-Free Guide that includes five full days of meals for those with celiac disease or those trying to eliminate gluten from their diet.

For more information, v is -it www.cabotcheese.coop. CMN

NEW HOLLAND, Pa. — Alouette Cheese this week announced the in-troduction of its new All-Natural Light Spinach & Artichoke Spreadable Cheese.

The new product offers a lighter ver-sion of Alouette’s All-Natural Spinach & Artichoke spread in specialty cheese cases across the country and retails for $5.49.

“We are very excited to introduce our newest light variety to our product line,” says Rafael Lampon, brand director for Alouette. “Consumers are constantly looking for healthy alternatives to their favorite products, and we are thrilled to offer our second favorite flavor of spreadable cheese with 50 percent less fat and 30 percent less calories, with the same creamy texture and superb taste.”

In addition, Greg Gable, executive chef for Alouette, has created new reci-pes and serving suggestions incorporat-ing the new spreadable cheese.

For more information, v is -it www.alouettecheese.com. CMN

Alouette Cheeseunveils new light spreadable cheese

MODESTO, Calif. — Non-Hispanic Americans have developed an increased appetite for Latino cuisine, according to a new report on Hispanic food and beverage trends.

The report, released by Compa-niesandmarkets.com, also found that the growth in America’s Hispanic popu-lation has led to increased demand for authentic Hispanic and nuevo Latino foods.

“With the abundance of Hispanic products now available, it’s easy to move beyond basic burritos and tacos by starting in the dairy aisle of your grocery store,” the report notes. “California is the No. 1 producer of Hispanic dairy products in the country, offering more than 25 varieties and styles of Hispanic-

California Milk Advisory Board releases new tip sheet on Hispanic-style cheeses

style cheeses bearing the Real California Cheese seal.”

To help consumers learn about the different varieties as well as their proper usage in home cooking, the California Milk Advisory Board (CMAB) has released an “at-a-glance” tip sheet on Hispanic cheeses that includes reci-pes. The tip sheet can be found at www.realcaliforniamilk.com.

For more information, visit www.realcaliforniamilk.com. CMN

— Smith Dairy Prod-ucts has released its new Ruggles Banana Nut Fudge Premium Ice Cream flavor.

According to company officials, the flavor was inspired by a fan letter from an 8-year-old niece of one of the dairy’s associates. She suggested the new flavor, along with the recipe instructions and a list of ingredients.

“When we received the note, we first thought it was a charming sentiment from a child who was a Ruggles ice cream fan,” says Penny Baker, director of marketing for Ruggles. “But then we took a second look at her ingredient com-binations and realized they were unique and appealing enough to introduce as a limited edition flavor.”

Ruggles Banana Nut Fudge Premium Ice Cream is a banana-flavored ice cream with a fudge swirl and chocolate-covered peanuts. It will be available as a rotational flavor this month in grocers’ freezers in 1.75-quart containers.

For addit ional information, visit www.smithdairy.com. CMN

New Smith Dairy ice cream flavor inspired by fan

Reprinted with permission from the May 13, 2011, edition of CHEESE MARKET NEWS®© Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the May 13, 2011, edition of CHEESE MARKET NEWS®© Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

May 13, 2011 — CHEESE MARKET NEWS® 11 R E T A I L I N G P E R S P E C T I V E S

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IRVINE, Calif. — The Dannon Co. Inc. has launched its new campaign designed to help Californians “Live Your Active Culture.”

The campaign was created to support and motivate families in California to maintain a balanced diet and find fun, physically active ways to bring everyone together. It consists of five components: encouraging families to take a pledge to make healthy food choices and include physical activity; a partnership with soccer player Mia Hamm; a partnership with and donation to the California State Parks Foundations; a Dannon mobile tour; and an ongoing, interactive pro-gram that provides families with support

Dannon teams with Mia Hamm, California State Parks Foundation for new campaignand rewards for making healthy choices.

“Dannon’s goal is to help Californians live their active culture, however they can, and to start a movement towards healthy living. We’re excited to intro-duce new tools and ongoing support to encourage California families to embrace good nutrition and physical activity as an ongoing, positive part of their lifestyles,” says Michael Neuwirth, senior director of public relations, The Dannon Co. “We’re honored to partner with legendary athlete Mia Hamm, as she is a wonderful inspiration and is eager to help us motivate parents and kids to make nutritious food choices and get active.”

Dannon recently conducted a survey of 1,000 moms in California to measure their health and wellness interests and aspirations. The survey found that only 26 percent of California moms con-sider their lifestyle to be healthy or very healthy, and only 40 percent consider the same of their children’s lifestyles.

To provide an easy way for families to make a commitment to their well-being, Dannon says it created the Live Your Ac-tive Culture pledge and accompanying website, Dannon.com/liveyouractivecul-ture. The pledge starts with a week-long commitment to three steps — provide a wholesome, nutritious snack for my family every day; add more occasions of 30 minutes of fun physical activity; and bring the family together for a nutritious dinner.

Once participants take the pledge either online or at the Dannon mobile tour, they will gain access to a collection of tools, fitness tips, nutritious recipes, events, rewards and savings on Dannon products.

In addition, Hamm will be making special appearances throughout Califor-nia to spread the word and encourage families to take the pledge toward better health and nutrition.

“The purpose of this partnership is very near and dear to my heart as fitness and good nutrition have always been an

important part of my family life,” Hamm says. “It is a personal goal of mine to inspire families to live healthier, and I like that Dannon supports this through their products and now with programs like Live Your Active Culture, which provides the perfect forum to share my experiences and motivate parents and kids to get involved together.”

The campaign also includes the Cali-fornia State Parks Foundation, which will receive a minimum donation of $50,000 from Dannon. If 500,000 pledges are reached by Oct. 31, Dannon will double that number to $100,000.

The fourth component of the cam-paign, the mobile tour, is traveling throughout California to fairs, festivals, events and retail locations through Octo-ber. The tour features select appearances by Hamm, a variety of Dannon products to sample and activities for the whole family, such as a green screen photo booth and prizes.

The final component is providing an incentive to families who choose to take part in the challenge to live a healthy lifestyle. Dannon will reward participants with sweepstakes and give-aways to further encourage and support their commitment to good nutrition and overall healthy living.

For additional information, visit dan-non.com/liveyouractiveculture. CMN

NORWICH, N.Y. — Greek yogurt maker Chobani recently debuted its first na-tional advertising push, “Real Love Stories.” The multi-faceted campaign, developed by Chobani and its advertis-ing agency, Gotham Inc., includes two national television commercials along with digital and out-of-home ads.

The campaign premiered in February, with spots airing in major markets on top-rated network shows and cable net-works. Digital and out-of-home ads are running nationally, along with continued outreach on the brand’s Facebook and Twitter accounts. All communications are driving fans to chobani.com, where they can submit their own “Real Love Story” and connect with other Chobani fans across the country.

“The love we’ve seen since Cho-bani first hit stores in 2007 has been

Greek yogurt maker Chobani introduces its first national ad campaign for yogurt

overwhelming,” says Hamdi Ulukaya, president and founder of Agro Farma, Chobani’s parent company. “We have the best fans in the world, and this campaign celebrates them and their passion for the brand.”

The campaign was born from the hearts and mouths of “Chobaniacs” across the country who share their Cho-bani love with the brand on a daily basis via social media platforms like Twitter, Facebook, and YouTube, Ulukaya adds.

According to Ulukaya, the television commercials tell the true stories of fans who went to great lengths for Chobani. The first spot features Stephen Wright, a pre-medical student from Hamilton College who biked 80 miles just to see where his favorite yogurt was made.

F o r m o r e i n f o r m a t i o n , v i s i t c h o b a n i . c o m . C M N

NEW YORK — Artisanal Brands Inc., formerly known as American Home Foods Products Inc., recently modified its distribution agreement with KeHE Distributors to reflect an exclusive marketing and distribution agreement in the retail sector, subject to certain limitations.

Daniel W. Dowe, president and CEO, Artisanal, says the decision to create a stronger relationship with KeHE was based on their commitment to work closely with Artisanal to expand its re-tail business with the support of larger inventory levels, in-store events and new personnel focused on expanding the Artisanal brand with KeHE’s network of 60,000 retail stores across the United States.

“As we increase the distribution of our 16-cheese Artisanal CheeseClock retail product line, we anticipate creating higher demand for our comprehensive line of over 200 handcrafted cheeses available to consumers through our multi-channel distribution network of e-commerce and the foodservice sector,” Dowe says.

The Artisanal CheeseClock collection includes mild, medium, bold and strong

Artisanal Brands Inc. and KeHE Distributorsannounce modified distribution agreement

flights of four cheeses each, based on the company’s CheeseClock tool that helps consumers assemble a cheese plate in the same way it’s done at the best restaurants.

KeHE distributors, Romeoville, Ill., provides natural and organic, specialty and gourmet, international and multi-cultural, and fresh products to retail-ers throughout North America. It sells several million dollars worth of various cheeses annually, says Chris Meyers, chief financial officer, KeHE.

“With Artisanal we saw a com-pany with the finest line of cheeses with a differentiator in the Artisanal CheeseClock, a tool for buying and serving cheese that a consumer can relate to and remember,” Meyers says. “One of the greatest issues con-sumers and store owners have with the cheese category is the confusion created by the extensive choices that are currently available. In our view, Artisanal has provided a solution to this problem, and we believe that our physical distribution system and field marketing staff will complement the expansion of Artisanal’s propri-etary position in the category.” CMN

Reprinted with permission from the May 13, 2011, edition of CHEESE MARKET NEWS®© Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

12 CHEESE MARKET NEWS® — May 13, 2011

For more information circle 9 on the FAST FAX form on page 16.

Wisconsin Cheese Makers Association thanks all of the auction bidders for a very successful 2011 United States Champion Cheese Auction.Thank You!

2011 WINNING BIDDERS – United States Championship Cheese Auction

R. Mueller Service & Equipment Co.Purchaser of LaGrander’s Colby, ForemostCheddar, Decatur Cheeses & Mill Creek Brick

CargillPurchaser of Cabot Cheeses and Sartori Cheeses

Masters Gallery Foods Inc.Purchaser of Land O’ Lakes Cheddar andAgropur Cheeses

ProlaminaPurchaser of Great Lakes Cheddar andHolland’s Family Cheeses

Novak’s Cheese of WisconsinPurchaser of Pine River Cold Pack andMasters Gallery Shredded Cheese

Custom Fabricating & RepairPurchaser of AMPI Cheese and Grassland Butters

Stateline Dairy ProductsPurchaser of Guggisberg Swiss

Chr. HansenPurchaser of DFA Provolone andGlanbia Cheeses

Danisco USAPurchaser of Lactalis Cheeses

D. R. Tech, Inc.Purchaser of Burnett Dairy Cheeses andSorrento Lactalis Mozzarella

DSM Food Specialties USA, Inc.Purchaser of Henning’s Cheese

Oshkosh Cheese Sales & StoragePurchaser of Arthur Schuman Cheeses

Proceeds from the Auction provide necessary

support for the United States Championship

Cheese Contest. In addition, auction dollars

!"##$%&'()*'!&"+*,&'!-.$/0%!.1#!'0,+'2345'

Member Education Initiatives.

Stateline Dairy Products

WI Aging & Grading Cheese Inc.Purchaser of U.S. Champion LaClare Farms Evalon

Dairy Connection Inc.Purchaser of Montchevre Goat Cheeses and Edelweiss Lacey Swiss

Cheese Market NewsPurchaser of Carr Valley Smoked Garlic Cheddar

A & B Process Systems Corp.Purchaser of Arla Foods Havarti

Nutricepts, Inc.Purchaser of Klondike Feta

T.C. Jacoby & Co. Inc.Purchaser of Tillamook Cheeses

Complete Filtration ResourcesPurchaser of BelGioioso Cheeses

Hoogewegt U.S., Inc.Purchaser of Red Barn Family Heritage Cheddar, Springbrook Farms and Kraft Cheeses

Great Lakes Cheese Co. Inc.Purchaser of Middlefield Cheese Baby Swiss

Jerry DryerPurchaser of Bel Brands Cold PackCheese Spread

MCT DairiesPurchaser of Chalet Cheese German Style Brick

Pacific CheesePurchaser of Biery Cheese Process Swiss American

General Films Inc.Purchaser of Karoun Cheeses

2011 WCIC Exclusive Sponsors 2011 Contest Partner Sponsors

Reprinted with permission from the May 13, 2011, edition of CHEESE MARKET NEWS®© Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the May 13, 2011, edition of CHEESE MARKET NEWS®© Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

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Reprinted with permission from the May 13, 2011, edition of CHEESE MARKET NEWS®© Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

14 CHEESE MARKET NEWS® — May 13, 2011

NEWS/BUSINESS

HELP WANTED 7 HELP WANTED 7HELP WANTED 7

DIVISION MANAGER

Associated Milk Producers Inc. (AMPI),

a leading Upper Midwest dairy coopera-

tive, is seeking a division manager for its

largest cheese plant located in Jim Falls,

Wisconsin.

This position is responsible for the overall

plant operations and milk procurement

for the Jim Falls Division in northwest

Wis.

4XDOLĬFDWLRQV�LQFOXGH�WHQ�RU�PRUH�\HDUV�of service in cheese/dairy manufacturing

(non-bottling), experience in procure-

ment, working and managing in a union

environment, negotiating union contracts

and a degree in dairy/food science or an

equivalent. The successful candidate will

possess technical, analytical, planning,

decision-making, and exceptional com-

munications and social skills.

AMPI offers a competitive wage and

EHQHĬWV�SDFNDJH�LQFOXGLQJ�KHDOWK�insurance and 401K plan.

Candidates should submit resumes

and salary requirements by:

Wed., May 18, 2011 to:

Associated Milk Producers Inc.

Attn: Human Resources

3�2��%R[�������1HZ�8OP��01������- AMPI is an AA/EEO employer -

DAIRY PRODUCTS MARKETING: Cheese sales specialists in all types of cheese. Visit our NEW website: www.dairyproductsmarketing.com or call (920) 921-9449.

CHEESE/DAIRY 12MARKETING 10

Sales Opportunity!Nelson-Jameson, Inc. is a recognized leader in wholesale distribution of supplies to the food, dairy and a variety of other industries throughout the United States.

Packaging Product Market Specialist 0UJYLHZL�JVYWVYH[L�WYVÄ[Z�[OYV\NO�WYVMLZZPVUHS��JVVYKPUH[LK��HUK�JVZ[�LMMLJ[P]L�marketing and sales promotion efforts of our industrial food processing packaging line. Work cooperatively with vendors to improve their products and product performance within our markets. Introduce new packaging products, new lines HUK�UL^�]LUKVYZ�HZ�ULLKLK�[V�PUJYLHZL�ZHSLZ�HUK�WYVÄ[HIPSP[ �̀�*VVYKPUH[L�[LHT�members and vendor personnel to select and execute a promotional strategy \[PSPaPUN�ÄLSK�ZHSLZ�WLYZVUULS�HUK�HWWYVWYPH[L�TLKPH�HK]LY[PZPUN�� Associate or B.S. degree preferred with two or more years related experience in packaging within the food processing industry required. >L�VMMLY�H�JVTWL[P[P]L�JVTWLUZH[PVU�HUK�ILULÄ[�WHJRHNL�PUJS\KPUN�OLHS[O��SPML�HUK�KPZHIPSP[`� PUZ\YHUJL��YL[PYLTLU[�WSHU��]HJH[PVU��KPZJYL[PVUHY`�WYVÄ[�sharing and bonus. Send resume or request an application, include salary history please:

Nelson-Jameson, Inc. Human Resources

2400 East Fifth Street 4HYZOÄLSK��>0����� �7OVUL��������������

E-mail [email protected] — An Equal Opportunity Employer —

MISCELLANEOUS 11

CLAS SI F IED ADVERTIS ING

LOOKING TO BUY CHEESEHigh-Quality Aged Cheddar ! 7 to 12 Years Old ! White or Colored

“One of the Largest Purveyors of Aged Cheddar Cheese!”

Photo copyright WMMB

2101 Bohm DriveLittle Chute, Wisconsin 54140 Phone: 920.687.0889Fax: 920.687.0416 Web: www.wagcheese.comKen Neumeier [email protected] Neumeier Clarke [email protected]

DIRECTOR OF QA/PLANT OPERATIONS

3DFLÀF�&KHHVH�&RPSDQ\�� ,QF�� WKH� OHDGLQJ� VXSSOLHU�RI�SUHPLXP�TXDOLW\�QDWXUDO�FKHHVH�FXUUHQWO\�KDV�D�MRE�RSSRUWXQLW\�IRU�D�'LUHFWRU�RI�4$�3ODQW�2SHUDWLRQV�SRVLWLRQ�EDVHG�RXW�RI�+D\ZDUG��&$�

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— EOE/M/F/V/D —

CHEESE/DAIRY 12

others, including processors, coopera-tives, associations, agricultural service providers and policymakers, could find information in the report helpful as well.

Milk is California’s highest-grossing

agricultural product, generating $6.9 billion in total sales and an estimated $63 billion in total economic impact according to industry estimates for 2008, the report says. The dairy crisis that started in 2008 hit the state’s dairy industry hard, and 100 California dairies closed in 2009 alone.

The report, made possible with fund-

CCCDContinued from page 1

ing from USDA Rural Development, was meant to specifically target California’s industry. However, Ellerby says many of the topics hold more universal interest as dairy issues tend to be interlocked across the United States and around the globe.

The report also includes a summary and update of the McKinsey Report, a two-part report from 2006-2007 by

consulting group McKinsey & Co. as-sessing the opportunities and challenges facing California’s dairy industry that recommended appropriate strategies to address the milk surplus and other chal-lenges. Many of the topics discussed in the CCCD report relate to and build upon the key challenges and strategies that were addressed in the McKinsey Report.

Some topics highlighted in the CCCD report include:

Ellerby says CCCD received a lot of good input for the report from producers themselves, particularly for the value-added chapter.

Results from a survey CCCD distrib-uted to California producers last year indicated a majority interest by producers in alternative arrangements for market-ing and/or processing their milk. (Ellerby notes the number of survey responses received was much smaller than needed to make any statistically-confident char-acterizations of the state’s overall dairy sector, but the responses provided help-ful information nonetheless.) Besides low milk prices, some reasons cited by producers for their interest in specialty dairy processing included keeping fam-ily members in the family business, the perception of niche market opportunities especially in local products, and a per-sonal passion for specialty dairy products.

Ellerby says the California Milk Advisory Board shared much of its re-search into specialty cheese, and CCCD used this information to help describe market trends in the report. The recent dairy crisis and consumer support for local foods has created interest among producers in farmstead processing, the report says, and specialty cheese ap-pears to be one of the best-supported by the industry and public resources.

“We were thinking past the farmers’ market stand,” Ellerby says, adding that CCCD explored a range of potential pro-cessing ventures from mobile cheesemak-ing units to co-branding with a winery.

The report points out the specialty cheese category is crowded and dif-ficult for individual producers to ac-cess beyond their own localities, so cooperation in shared services may be advantageous to farmstead and artisanal cheesemakers attempting to expand. Also, value-added opportuni-ties are available for larger processors in probiotics, whey proteins and other milk protein concentrates.

California’s dairy biogas sector has substantial poten-tial to create environmental and econom-ic benefits, the report says. However, the dairy biogas sector will need continuing government support for technological improvement through research, imple-mentation and accessible information on biogas technology and providers. The general public’s support for dairy-related renewable energy can be further lever-aged and improved through promotion of sustainably-produced dairy products, green energy pricing programs and sus-tained political support for governmental

Turn to SPECIALTY, page 16 D

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NEWS/BUSINESSMay 13, 2011 — CHEESE MARKET NEWS® 15

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of more than $1 million. It would use a 50/50 split of spending cuts and tax increases to reduce the deficit.

Republican leaders in both the House and Senate have said that tax increases are off the table in the talks over deficit reduction.

Two other Gang of Six members — Sens. Tom Coburn, R-Okla., and Mark Warner, D-Va. — this week introduced a bill that would require the Office of Management and Budget (OMB) and executive branch departments and agencies to reduce at least $5 billion in federal spending by eliminating, con-solidating or streamlining government programs and agencies with duplicative and overlapping missions.

The proposal reinforces the need for Congress to take immediate action to pass legislation that saves taxpayer dollars by cutting billions of dollars exposed in a recent U.S. Government Accountability Office report as “waste-ful and duplicative spending.”

Other lawmakers continue to intro-

duce other funding bills, as well.Rogers this week unveiled a bill that

proposes cutting another $45.7 billion from domestic spending and foreign aid. The plan would cut nearly every area of the federal government except for defense spending. The bill calls for giving the Pentagon an additional $17 billion over current levels.

“Many of these cuts will not win any popularity contests, but these types of reductions are imperative to overcom-ing our unparalleled fiscal crisis so that we can get our economy moving, create jobs and provide future financial security,” Rogers says.

In addition, Sen. Pat Toomey, R-Pa., unveiled a fiscal year 2012 budget pro-posal that he says would balance the budget in nine years.

Under Toomey’s proposal, federal spending would be lowered to 18.5 per-

cent of gross domestic product (GDP) by 2021, down from a current estimate of 25 percent. The national debt, now projected to reach 69 percent of the economy’s total output by the end of this year, would be reduced to 52 percent of GDP by 2021.

Meanwhile, debate continues on increasing the U.S. debt ceiling.

“The worst kept secret in Washington these days is that the United States gov-ernment is rapidly approaching its debt ceiling limit of $14.3 trillion, and time is running rapidly short,” says the Interna-tional Dairy Foods Association (IDFA).

At the request of President Obama, last week Vice President Joe Biden gath-ered a bipartisan group of legislators for a two-hour discussion in the hopes of com-ing to an agreement on ways to handle the debt ceiling and debt itself. The deadline to raise the debt ceiling is Aug. 2.

At the same time, Sen. Bob Corker, R-Tenn., last week introduced a bill, the Commitment to American Prosperity Act (CAP), which aims to reduce federal spending to 20.6 percent of U.S. GDP over 10 years by cutting spending programs.

If Congress failed to do so, the Act would authorize OMB to push through cuts by itself. The cuts then could only be overturned through a two-thirds vote in Congress, IDFA notes.

Senate Majority Leader Harry Reid, D-Nev., is opposed to the bill, making the chances of it coming up for a Senate vote “limited,” IDFA says.

President Obama this week urged Congress to avoid declaring absolute posi-tions in the debate on increasing the debt ceiling following a statement from House Speaker John Boehner, R-Ohio, in which Boehner declared tax increases were “off the table” as part of any agreement. CMN

Ag committee says dairy policy progress unlikely ahead of 2012 Farm BillWASHINGTON — The International Dairy Foods Association (IDFA) this week noted that in an interview with Agri-Pulse — an online weekly report on the agricultural information — last week, Sen. Debbie Stabenow, D-Mich., chair of the Senate Agriculture Commit-tee, has indicated that dairy policy would not move ahead of the 2012 Farm Bill.

“The only reason to even talk about moving it separately would be if there was agreement on a package,” Stabenow says. “Frankly, I think, politically, it makes sense to move everything within the context of the farm bill.”

IDFA notes that Stabenow’s com-ments mirror those made by House Ag-riculture Committee chair Frank Lucas, R-Okla., in interviews earlier this year.

Lucas has said he would consider moving a dairy reform package ahead of the farm bill only if farmers and processors are united.

Currently IDFA and the National Milk Producers Federation (NMPF) have differing points of view on the path forward for dairy reform.

“We’d like to move ahead with pro-posals where IDFA and NMPF agree, such as the need for new risk insur-ance programs and the elimination of the price support program,” says Jerry Slominski, IDFA senior vice president of legislative affairs and economic policy, noting that the two groups differ on other issues related to policy reform.

The Senate Agriculture Committee is scheduled to hold its first field hearing on the farm bill May 31 in Lansing, Mich. CMN

Reprinted with permission from the May 13, 2011, edition of CHEESE MARKET NEWS®© Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

16 CHEESE MARKET NEWS® — May 13, 2011

NEWS/BUSINESS

For more information circle 18 on the FAST FAX form on page 16.

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financing towards biogas development, the report adds.

The report examines reasons behind dairy supply-demand imbalances and current supply management programs and proposals — from production base caps imposed by major California dairy cooperatives to national programs such as the herd retirement program from Cooperatives Working Together and proposed industry and federal interventions. Potential benefits of an effective supply manage-ment program include a reduced need for subsidies, an improved ability to strategically plan and innovate across

the value chain, distribution of market power to producers and avoidance of governmental direct-support costs to dairies.

However, the report also points out that such programs can easily be skewed to the advantage of stakeholders with the best information and best capitalization. There appears to be not only healthy disagreement, but also confusion and even misrepresentation surrounding the supply management debate, the report says, and it would be no small challenge to coordinate any kind of ongoing debate among the necessary critical mass of dairy producers.

The report describes various market-based price risk management (PRM) tools and suggests interest in PRM may be growing among

SPECIALTYContinued from page 14

California producers. Among the PRM tools described in this chapter is the Livestock Gross Margin-Dairy (LGM-D) insurance program, which Ellerby says only became available in California in the middle of the report project last year. The program, administered by USDA’s Risk Management Agency, is offered through private crop insurance providers and targets specific income-over-feed costs rather than just milk or feed prices alone. Last August, CCCD conducted a series of workshops on the LGM-D program, and videos and documents from the workshops are available at CCCD’s website, www.cccd.coop.

“What I would personally hope is the best, most productive aspect (of this report) is advertising the Livestock Gross Margin-Dairy insurance program,”

Ellerby says. “Looking at specific prob-lems producers were having, we found this was one of the better products put in front of them.”

To design future effective PRM servic-es, the report says policymakers should be familiar with the full portfolio of PRM proposals, the history of previous pilot programs, and take into account produc-ers’ psychology and economics so future programs and outreach efforts may suc-ceed where past efforts have been insuf-ficient. Producers should engage PRM tools through a carefully-considered and comprehensive marketing plan that focuses on price adequacy, stability and predictability, the report adds.

The report includes a chapter and a “Dairy-Related Opportunities Chart” outlining a variety of funding sources that offer grants, loans, loan guarantees and/or technical assistance to dairies and dairy-related businesses. CCCD also provides this chapter as a separate document on its website.

“It was important enough that we provided a separate link for funding opportunities,” Ellerby says.

Some USDA programs aren’t highly advertised, so it will be helpful for those who could use this funding to have the information on these and other programs in one comprehensive chart, Ellerby adds. The Dairy-Related Funding Opportunities Chart assigns keywords such as “Start-Ups,” “Train-ing,” “Fixed assets” and “Organic” to each program along with basic eligibility requirements and funding details.

For more information and to down-load the full study, visit www.cccd.coop/events/DairyOpportunities. CMN

FLAVORContinued from page 1

that now the average calorie level of flavored milk sold during the 2009-10 school year was reduced nearly 8 per-cent compared to the 2006-07 school year,” Tipton says in the letter. “In fact, flavored milk currently served in your school district contains one of the lowest calorie counts in the nation.”

The decision to ban flavored milk did not pan out for Cabell County, W.Va., schools, which brought chocolate milk back at the recommendation of state officials. The same is true for Fairfax County, Va., which did the same after its dairy provider created a version sweetened with beet sugar rather than high-fructose corn syrup.

In addition, not all schools are in favor of a flavored milk ban.

Jodi Risse, a dietitian and supervi-sor of food and nutrition services for Anne Arundel, Md., schools, says the schools use only a fat-free version of flavored milk that has 11 grams of sugar per serving.

“It’s 11 grams that gives you potas-sium, calcium, vitamin D,” Risse says. “If a student’s not going to be drinking milk at all, it’s such a disadvantage.” CMN

Reprinted with permission from the May 13, 2011, edition of CHEESE MARKET NEWS®© Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com