Senate Agriculture Committee votes to approve 2012 Farm Bill · 2012-06-30 · Office (CBO) to...
24
Reprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS ® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 9ROXPH $SULO 1XPEHU BSE found in California cow, but food supply is not at risk SACRAMENTO, Calif. — This week the National Veterinary Services Laboratory in Ames, Iowa, confirmed that a routine surveillance sample obtained from a Holstein cow carcass at a rendering plant in California’s Central Valley tested positive for the atypical strain of bovine spongiform encephalopathy (BSE), also known as “mad cow disease.” The animal in question was 10 years and 7 months old and came from a dairy farm in Tulare County, Calif. It was humanely euthanized after it developed lameness and became recumbent. The animal’s carcass will be destroyed. The California Department of Food and Agriculture (CDFA) says no part of this carcass entered the human or animal food chain. CDFA veterinarians are working with USDA to investigate this case and identify whether additional cows are at risk. Salt reduction, yogurt among ingredient application trends By Rena Archwamety MADISON, Wis. — As clean nutrition labels, reduced salt, weight management and healthy aging continue to be top-of-mind for consum- ers, the dairy ingredients industry responds by innovating and utilizing dairy components that meet consumers’ needs. “The nutritional benefits of dairy ingredients naturally align with a number of trending categories and products appealing to consumers of all ages — from infants to active adults to aging populations. We know that consumers perceive foods made with dairy as desirable, natural and wholesome,” says Kara McDonald, director of marketing and communica- tions, U.S. Dairy Export Council (USDEC) Global Marketing Program. USDEC and other dairy checkoff supported organizations, includ- ing the Dairy Research Institute, Innovation Center for U.S. Dairy and National Dairy Council, continually work to uncover new and improve existing dairy ingredients and applications to meet consumer demand and buying trends, McDonald adds. The USDEC Global Marketing Program works on marketing U.S. dairy ingredients both domestically and abroad. Two products it is focusing on due to increasing demand both here and abroad is whey protein concentrate (WPC) and milk protein concentrate (MPC). “The reason we’re seeing such demand for both milk proteins is twofold,” McDonald says. “One is the rise of middle-class markets around the world. Also, aging consumers, and consumers in general with disposable income, are looking for health and wellness needs.” Another in-demand ingredient area is milk and whey permeate, a source of dairy solids obtained by the removal of protein and some minerals and lactose from whey. In the United States, McDonald says permeate ingredients are important for their benefits and functionality in formats like baking WASHINGTON — The U.S. Senate Agriculture Committee on Thursday voted to approve the 2012 Farm Bill authored by committee chairwoman Debbie Stabenow, D-Mich., and ranking member Pat Roberts, R-Kan. The bill reforms food and ag- ricultural policy by eliminating direct payments and emphasiz- ing the need to strengthen risk management tools for farmers, saving billions of dollars, Sta- benow says. Overall, the bill will reduce the deficit by $23 billion dol- lars by eliminating unneces- sary subsidies, consolidating programs to end duplication and cracking down on food as- sistance abuse, she says. These Senate Agriculture Committee votes to approve 2012 Farm Bill reforms allow for the strength- ening of key initiatives that help farmers and small businesses reach new markets and create American jobs, she adds. The measure now will go to the full Senate for consid- eration. In a letter sent Thursday from the Congressional Budget Office (CBO) to Stabenow, CBO says it estimates that enacting the proposal would reduce direct spending by $24.7 bil- lion over the 2013-2022 period, relative to spending projected under CBO’s current baseline. “CBO has not estimated the additional discretionary spending that would result from implementing the pro- posal; such spending would be subject to appropriations,” the letter says. Roger Johnson, president of the National Farmers Union (NFU), said NFU is pleased with the lawmakers’ efforts to write a bipartisan bill under difficult budgetary constraints. “This is an important step in a long process for writing the omnibus agricultural leg- islation, and it increases the likelihood that a bipartisan farm bill can pass the Senate in the near future,” he says. “(The bill) provides for simplified, flexible conservation programs and includes many livestock and energy programs that NFU supports. The bill also includes permanent disaster programs, including an additional provi- sion for current-year losses, which NFU has long supported.” The American Farm Bureau Federation (AFBF) also notes that the draft farm bill address- es many of the group’s policy priorities, including protecting and strengthening the federal crop insurance program. However, AFBF notes that the organization continues to support a single program option for the commodity title that is extended to all crops, and the group has concerns about the need for improved equity across all commodities. The bill includes dairy provisions modeled after the Dairy Security Act (DSA), a controversial piece of legisla- tion introduced last year by Rep. Collin Peterson, D-Minn. The two main pieces of the DSA included in the farm bill draft — closely modeled after dairy reform proposals included in the National Milk Producers Federation’s (NMPF) proposal for dairy reform, Foundation for the Future — are: • Dairy Producer Margin Protection Program (DPMPP): Under this program, a pro- ducer can choose to enroll in a direct-payment program run by USDA. The basic program would provide cash payments directly to dairy farmers when the national margin between milk prices and feed costs drops below $4 per hundredweight. Unlike the Milk Income Loss Contract Program (MILC), this insurance program would not be capped at a specific volume of milk but would cover 80 percent of the “historical pro- duction” of each dairy facility. • Dairy Market Stabilization Program (DMSP): The most controversial aspect of the bill, this program would require dairies enrolled in DPMPP to enroll in DMSP. Under DMSP, when the margin falls below $6 per hundredweight for two consecutive months, USDA would notify the dairies enrolled in the program that in the following month, they would only be paid for 98 per- cent of their base production. Milk produced above that level would still be paid for by the milk handler, but these dollars would be diverted to a fund used to buy excess dairy products to be donated to food banks and High Desert Milk to build butter facility in Idaho Turn to FARM BILL, page 18 D Turn to BSE, page 23 D By Alyssa Sowerwine BURLEY, Idaho — High Desert Milk this week an- nounced that it is building a new butter facility onto its existing powder plant in Burley, Idaho. Construction on the facil- ity — which will include an approximately 13,000-square- foot refrigerated warehouse and an additional 40,000 Turn to BURLEY, page 23 D Turn to INGREDIENTS, page 16 D Scan this code for breaking news and the latest markets! A INSIDE ) Guest column: ‘2012 — A year of policy and politics.’ For details, see page 4. ) Consortium for Common Food Names, USDEC discuss GI regulations with Japanese officials. For details, see page 9. ) Fonterra plans new facility in Indonesia. For details, see page 23. ) Proposed New York dairy marketing order rejected. For details, see page 24.
Transcript of Senate Agriculture Committee votes to approve 2012 Farm Bill · 2012-06-30 · Office (CBO) to...
Reprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
9ROXPH�����������������������������$SULO�������������������������������1XPEHU�����
BSE found in California cow, but food supply is not at riskSACRAMENTO, Calif. — This week the National Veterinary Services Laboratory in Ames, Iowa, confirmed that a routine surveillance sample obtained from a Holstein cow carcass at a rendering plant in California’s Central Valley tested positive for the atypical strain of bovine spongiform encephalopathy (BSE), also known as “mad cow disease.”
The animal in question was 10 years and 7 months old and came from a dairy farm in Tulare County, Calif. It was humanely euthanized after it developed lameness and became recumbent. The animal’s carcass will be destroyed.
The California Department of Food and Agriculture (CDFA) says no part of this carcass entered the human or animal food chain. CDFA veterinarians are working with USDA to investigate this case and identify whether additional cows are at risk.
Salt reduction, yogurt among ingredient application trendsBy Rena Archwamety
MADISON, Wis. — As clean nutrition labels, reduced salt, weight management and healthy aging continue to be top-of-mind for consum-ers, the dairy ingredients industry responds by innovating and utilizing dairy components that meet consumers’ needs.
“The nutritional benefits of dairy ingredients naturally align with a number of trending categories and products appealing to consumers of all ages — from infants to active adults to aging populations. We know that consumers perceive foods made with dairy as desirable, natural and wholesome,” says Kara McDonald, director of marketing and communica-tions, U.S. Dairy Export Council (USDEC) Global Marketing Program.
USDEC and other dairy checkoff supported organizations, includ-ing the Dairy Research Institute, Innovation Center for U.S. Dairy and National Dairy Council, continually work to uncover new and improve existing dairy ingredients and applications to meet consumer demand and buying trends, McDonald adds.
The USDEC Global Marketing Program works on marketing U.S. dairy ingredients both domestically and abroad. Two products it is focusing on due to increasing demand both here and abroad is whey protein concentrate (WPC) and milk protein concentrate (MPC).
“The reason we’re seeing such demand for both milk proteins is twofold,” McDonald says. “One is the rise of middle-class markets around the world. Also, aging consumers, and consumers in general with disposable income, are looking for health and wellness needs.”
Another in-demand ingredient area is milk and whey permeate, a source of dairy solids obtained by the removal of protein and some minerals and lactose from whey.
In the United States, McDonald says permeate ingredients are important for their benefits and functionality in formats like baking
WASHINGTON — The U.S. Senate Agriculture Committee on Thursday voted to approve the 2012 Farm Bill authored by committee chairwoman Debbie Stabenow, D-Mich., and ranking member Pat Roberts, R-Kan.
The bill reforms food and ag-ricultural policy by eliminating direct payments and emphasiz-ing the need to strengthen risk management tools for farmers, saving billions of dollars, Sta-benow says.
Overall, the bill will reduce the deficit by $23 billion dol-lars by eliminating unneces-sary subsidies, consolidating programs to end duplication and cracking down on food as-sistance abuse, she says. These
Senate Agriculture Committee votes to approve 2012 Farm Bill
reforms allow for the strength-ening of key initiatives that help farmers and small businesses reach new markets and create American jobs, she adds.
The measure now will go to the full Senate for consid-eration.
In a letter sent Thursday from the Congressional Budget Office (CBO) to Stabenow, CBO says it estimates that enacting the proposal would reduce direct spending by $24.7 bil-lion over the 2013-2022 period, relative to spending projected under CBO’s current baseline.
“CBO has not estimated the additional discretionary spending that would result from implementing the pro-posal; such spending would be subject to appropriations,” the letter says.
Roger Johnson, president of the National Farmers Union (NFU), said NFU is pleased with the lawmakers’ efforts to write a bipartisan bill under difficult budgetary constraints.
“This is an important step in a long process for writing the omnibus agricultural leg-islation, and it increases the likelihood that a bipartisan farm bill can pass the Senate in the near future,” he says. “(The bill) provides for simplified,
flexible conservation programs and includes many livestock and energy programs that NFU supports. The bill also includes permanent disaster programs, including an additional provi-sion for current-year losses, which NFU has long supported.”
The American Farm Bureau Federation (AFBF) also notes that the draft farm bill address-es many of the group’s policy priorities, including protecting and strengthening the federal crop insurance program.
However, AFBF notes that the organization continues to support a single program option for the commodity title that is extended to all crops, and the group has concerns about the need for improved equity across all commodities.
The bill includes dairy provisions modeled after the Dairy Security Act (DSA), a controversial piece of legisla-tion introduced last year by Rep. Collin Peterson, D-Minn. The two main pieces of the DSA included in the farm bill draft — closely modeled after dairy reform proposals included in the National Milk Producers Federation’s (NMPF) proposal for dairy reform, Foundation for the Future — are:
• Dairy Producer Margin
Protection Program (DPMPP): Under this program, a pro-ducer can choose to enroll in a direct-payment program run by USDA. The basic program would provide cash payments directly to dairy farmers when the national margin between milk prices and feed costs drops below $4 per hundredweight. Unlike the Milk Income Loss Contract Program (MILC), this insurance program would not be capped at a specific volume of milk but would cover 80 percent of the “historical pro-duction” of each dairy facility.
• Dairy Market Stabilization Program (DMSP): The most controversial aspect of the bill, this program would require dairies enrolled in DPMPP to enroll in DMSP. Under DMSP, when the margin falls below $6 per hundredweight for two consecutive months, USDA would notify the dairies enrolled in the program that in the following month, they would only be paid for 98 per-cent of their base production. Milk produced above that level would still be paid for by the milk handler, but these dollars would be diverted to a fund used to buy excess dairy products to be donated to food banks and
High Desert Milk to build butter facility in Idaho
Turn to FARM BILL, page 18 D
Turn to BSE, page 23 D
By Alyssa Sowerwine
BURLEY, Idaho — High Desert Milk this week an-nounced that it is building a new butter facility onto its existing powder plant in Burley, Idaho.
Construction on the facil-ity — which will include an approximately 13,000-square-foot refrigerated warehouse and an additional 40,000
Turn to BURLEY, page 23 DTurn to INGREDIENTS, page 16 D
Scan this code for breaking news and the latest markets!
A
INSIDE) Guest column: ‘2012 — A year of policy and politics.’ For details, see page 4.
) Consortium for Common Food Names, USDEC discuss GI regulations with Japanese officials. For details, see page 9.
) Fonterra plans new facility in Indonesia. For details, see page 23.
) Proposed New York dairy marketing order rejected. For details, see page 24.
Reprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
2 CHEESE MARKET NEWS® — April 27, 2012
MARKET INDICATORS
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.
STAFF SUBSCRIPTION INFORMATION&KHHVH�0DUNHW�1HZV���3XEOLFDWLRQ�����������������������������������,661�������������LV�SXEOLVKHG�ZHHNO\�E\�4XDUQH�3XEOLVKLQJ�//&�������6LJQDWXUH�'ULYH��0LGGOHWRQ��:,���������3KRQH����������������)$;���������������3HULRGLFDOV�SRVWDJH�SDLG�DW�0DGLVRQ��:,��&LUFXODWLRQ�UHFRUGV�DUH�PDLQWDLQHG�E\�4XDUQH�3XEOLVKLQJ�//&�������6LJQDWXUH�'ULYH��0LGGOHWRQ��:,� ��������POSTMASTER: Send address changes to Cheese Market News®, Subscriber Services, P. O. Box 628254, Middleton, WI 53562; Form 3579 requested; or call direct at 608/831-6002.� �$OO� ULJKWV�UHVHUYHG�XQGHU�WKH�8QLWHG�6WDWHV�,QWHUQDWLRQDO�DQG�3DQ�$PHULFDQ�&RS\ULJKW� &RQYHQWLRQV�� 1R� SDUW� RI� WKLV� SXEOLFDWLRQ� PD\� EH�UHSURGXFHG��VWRUHG�LQ�D�UHWULHYDO�V\VWHP�RU�WUDQVPLWWHG�LQ�DQ\�IRUP�RU�E\�DQ\�PHDQV��PHFKDQLFDO�� SKRWRFRS\LQJ��HOHFWURQLF�UHFRUGLQJ�RU�RWKHUZLVH��ZLWKRXW�WKH�SULRU�ZULWWHQ�SHUPLVVLRQ�RI�4XDUQH� 3XEOLVKLQJ� //&�� �2SLQLRQV� H[SUHVVHG� LQ� DUWLFOHV� DUH�WKRVH� RI� WKH� DXWKRUV� DQG� GR� QRW� QHFHVVDULO\� UHÁHFW� WKRVH� RI�4XDUQH�3XEOLVKLQJ�//&�GED�&KHHVH�0DUNHW�1HZV���&KHHVH�0DUNHW�1HZV��GRHV�QRW�HQGRUVH�WKH�SURGXFWV�RI�DQ\�DGYHUWLVHU�DQG�GRHV�QRW�DVVXPH�DQG�KHUHE\�GLVFODLPV�DQ\�OLDELOLW\�WR�DQ\�SHUVRQ�IRU�DQ\�ORVV�RU�GDPDJH�FDXVHG�E\�HUURUV�RU�RPLVVLRQV�LQ�WKH�PDWHULDO�FRQWDLQHG�KHUHLQ��UHJDUGOHVV�RI�ZKHWKHU�VXFK�HUURUV�UHVXOW�IURP�QHJOLJHQFH��DFFLGHQW�RU�DQ\�RWKHU�FDXVH�ZKDWVRHYHU��&RS\ULJKW������E\�4XDUQH�3XEOLVKLQJ�//&�Subscriptions:������IRU�8�6���VHFRQG�FODVV�GHOLYHU\���������IRU�8�6��ÀUVW�FODVV�GHOLYHU\�LQFOXGLQJ�&DQDGD�DQG������,QWHU�QDWLRQDO�UDWH�WR�DOO�RWKHUV���3ULQWHG�LQ�8�6�$�
Susan Quarne, 3XEOLVKHU (PH 608/831-6002; FAX 608/831-1004)���e-mail: [email protected] Kate Sander, (GLWRULDO�'LUHFWRU (PH 509/962-4026; FAX 509/962-4027)���e-mail: [email protected] Sowerwine, 6HQLRU�(GLWRU (PH 608/288-9090; FAX 608/288-9093)�� e-mail: [email protected] Archwamety, 1HZV�:HE�(GLWRU (PH 608/288-9090; FAX 608/288-9093)�� e-mail: [email protected] Aaron Martin, 1HZV�(GLWRU (PH 608/288-9090; FAX 608/288-9093)�� e-mail: [email protected]
REGULAR CONTRIBUTORSJohn Umhoefer, Downes-O'Neill LLC, International Dairy Foods Association, National Milk Producers Federation
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Dry Products* April 27, 2012
DRY BUTTERMILK(FOB)Central & East: $1.0800(-1 1/2)-$1.2825.(FOB) West: $1.0500(-3)-$1.1700(-3); mostly $1.0800(-5)-$1.1500(-3).
EDIBLE LACTOSE(FOB)Central and West: $.8000(-1/2)-$1.0050(-4 1/2); mostly $.8900-$.9400.
NONFAT DRY MILKCentral & East: low/medium heat $1.1000(+1 1/2)-$1.3375(+3/4); mostly $1.1200(-3)-$1.3000(-1). high heat $1.2800(-1)-$1.3800.West: low/medium heat $1.0500(-1/2)-$1.3250; mostly $1.1200(-3)-$1.2400(-2). high heat $1.2450(-3 1/2)-$1.3850(-1/2).Calif. manufacturing plants: extra grade/grade A weighted ave. $1.2576(-.0458) based on 22,112,106 lbs. Sales to CCC: 0 lbs.
WHOLE MILK POWDER (National): $1.5300-$1.5600(+1).
DRY WHEYCentral: nonhygroscopic $.3000-$.6200; mostly $.4825(-1/4)-$.5650(-1 1/2).West: nonhygroscopic $.3000-$.6125(-2). mostly $.4600-$.5325(-1 1/4)(FOB) Northeast: extra grade/grade A $.5400(-2)-$.6375(-2 1/4).
ANIMAL FEED (Central): Whey spray milk replacer $.4200(-1)-$.4800.
WHEY PROTEIN CONCENTRATE (34 percent): $1.1000(-10)-$1.5750; mostly $1.3600-$1.4325(-3 1/4).
CASEIN: Rennet $4.3000-$4.7000; Acid $4.6000-$4.9000.
*Source: USDA’s Dairy Market News
CLASS III PRICE (Dollars per hundredweight, 3.5% butterfat test)
YEAR2006200720082009201020112012
JAN13.3913.5619.3210.7814.5013.4817.05
FEB12.2014.18 17.03 9.31 14.2817.0016.06
MAR11.1115.0918.0010.4412.7819.4015.72
APR10.9316.0916.7610.7812.9216.87
MAY10.8317.6018.18 9.8413.3816.52
JUN11.2920.1720.25 9.9713.6219.11
JUL10.9221.3818.24 9.9713.7421.39
AUG11.0619.8317.3211.2015.1821.67
SEP12.2920.0716.2812.1116.2619.07
OCT12.3218.7017.0612.8216.9418.03
NOV12.8419.2215.5114.0815.4419.07
DEC13.4720.6015.2814.9813.8318.77
(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
9,612130,873
+834+705
7,862126,503
+1,434-2,428
+1,750+4,370
+18 -2
Weekly Cold Storage Holdings April 23, 2012 On hand Week Change since April 1 Last Year Monday Change Pounds Percent Pounds Change
Total Contracts Traded/Open Interest
APR12MAY12JUN12JUL12AUG12SEP12OCT12NOV12DEC12JAN13
22/2,464
58.8851.0042.9541.7541.5041.7541.7541.5041.5041.00
381404423252244222194173167
4
DRY WHEY FUTURES for the week ended April 26, 2012 (Listings for each day by month, settling price and open interest)
58.8851.0042.8842.0041.5042.0042.0041.5041.2541.00
381397417244242228195172165
4
86/2,445
59.6053.0044.5044.0043.0042.0041.9041.5041.2541.00
381402424245255228196175168
4
64/2,478
Fri., April 20 Mon., April 23 Tues., April 24 Wed., April 25 Thurs., April 26
59.0051.0042.0041.7541.5041.7541.5041.5041.5041.00
64/2,417
59.0051.5045.0043.5043.0043.0042.0041.5041.5041.00
381400393248240219184167162
4
38/2,398
381395408245241221190170162
4
Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.
Total Contracts Traded/Open Interest Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.
APR12MAY12JUN12JUL12AUG12SEP12OCT12NOV12DEC12JAN 13 FEB 13MAR 13
115/9,871
1.5471.5041.5151.5571.6331.6821.7021.7001.6791.6831.7291.750
1,3301,5531,6171,1531,019
864728734774
9621
CHEESE FUTURES for the week ended April 26, 2012 (Listings for each day by month, settling price and open interest)
1.5471.5051.4941.5521.6271.6791.6871.6851.6701.6701.7241.750
1,3301,5531,6591,1691,033
875742773792
9621
255/10,025
1.5421.4931.4651.5401.6131.6721.6861.6851.6701.6631.7191.750
1,3301,5841,7021,1691,056
883748780803
9621
Fri., April 20 Mon., April 23 Tues., April 24 Wed., April 25 Thurs., April 26
1.5441.4901.4791.5391.6201.6781.6921.6861.6791.6841.7291.750
1,3301,5551,5961,1281,018
859725732774
9621
425/9,816
1.5441.5151.5161.5701.6441.6901.6951.6901.6801.6841.7291.750
1,3281,5741,5161,096
962846709718764
9621
263/9,612 172/10,154
Monday Tuesday Wednesday Thursday Friday
Chicago Mercantile Exchange
April 23 April 24 April 25 April 26 April 27
Weekly average (April 23-27): Barrels: $1.4455(-.0145); 40-lb. Blocks: $1.5265(+.0235).Weekly ave. one year ago (April 25-29, 2011): Barrels: $1.5915; 40-lb. Blocks: $1.6045.
Cheese BarrelsPriceChange
Cheese 40-lb. blockPriceChange
Extra Grade NDMPriceChange
Grade A NDMPriceChange
Weekly average (April 23-27): Extra Grade: $1.1215(-.0280); Grade A: $1.1615(-.0140).
Grade AA ButterPriceChange
Class II Cream (Major Northeast Cities): $1.6018(+.0475)–$1.7861(+.1092).Weekly average (April 23-27): Grade AA: $1.3845(-.0330).
$1.4475-3/4
$1.5250+1/4
$1.3900-1
Sign up for our daily fax or e-mail service for just $104 a year. Call us at 608-288-9090.
$1.1275 NC
$1.1675NC
Cash prices for the week ended April 27, 2012
$1.4550-1 1/2
$1.5225NC
$1.1275NC
$1.1675NC
$1.4000-1 1/4
$1.4200 -2 3/4
$1.5275+1/4
$1.3600-3
$1.1175 -1
$1.1575-1
$1.3600NC
$1.4350 +1 1/2
$1.5350+3/4
$1.1075 -1
$1.1475-1
$1.4125 NC
$1.1275NC
$1.4700+1
$1.5225-1/2
$1.1675NC
Reprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
April 27, 2012 — CHEESE MARKET NEWS® 3
DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions.
For more information please visit www.johnsonindint.com
NEWS/BUSINESSMARKET INDICATORS
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ARLINGTON, Va. — Cooperatives Working Together (CWT) has accepted 11 requests for export assistance from Dairy Farmers of America, Darigold, Foremost Farms, and Maryland & Virginia Milk Producers Cooperative to sell a total of 1,186 metric tons (2.61 million pounds) of Cheddar and Monterey Jack and 341 metric tons (0.752 million pounds) of butter to customers in Africa, Asia, the Middle East and South America. The product will be delivered May through July 2012.
CWT also announced this week that, beginning the week of May 7, it will begin accepting requests for export assistance for anhydrous milkfat (AMF). CWT says
CWT accepts 11 requests for assistance, will begin assisting AMF exports May 7
this decision was the result of a thorough economic review of world market fun-damentals and the potential return on investment for dairy producers.
In 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack and Gouda totaling 46.0 million pounds and but-ter totaling 39.2 million pounds. On a butterfat basis, the milk equivalent of these exports is 1.28 billion pounds, or the same as the annual milk production of 60,900 cows.
CWT will pay export bonuses to the bidders when delivery of the product is verified by the submission of the required documentation. CMN
International Dairy Markets April 27, 2012
Oceania Butter: 82 percent butterfat $3,000(-500)-$3,600(-300). Cheddar Cheese: 39 percent maximum moisture $3,200(-50)-$4,100(-150).Skim Milk Powder: 1.25 percent butterfat $2,800(-200)-$3,000(-300).Whole Milk Powder: 26 percent butterfat $2,950(-275)-$3,400(-200).* Source: Dairy Market News. Prices reported in U.S. dollars per metric ton, F.O.B. port. To convert to price per pound: divide price by 2,204.6 pounds.
Western and Eastern Europe Butter: 82 percent butterfat $3,300(-100)-$3,550(-300); 99 percent butterfat $3,950(-100)-$4,175(-300).Skim Milk Powder: 1.25 percent butterfat $2,525(-50)-$2,725(-50).Whole Milk Powder: 26 percent butterfat $3,200(-150)-$3,425.Whey Powder: Nonhygroscopic $1,075(+50)-$1,300(+50).
National Dairy Products Sales Report
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 AMS at 202-720-4392.
3/31/12
Average price1 Sales volume2
Cheese 500-lb. Barrels:Average price1
Adj. price to 38% moistureSales volume2
Moisture content Butter:
Average price1
Sales volume2 Nonfat Dry Milk:
Average price1 Sales volume2
Dry Whey:Average price1 Sales volume2
4/7/12For the week ended:
$1.53879,488,395
$1.6713$1.5896
9,952,33534.81
$1.50016,118,090
*$1.2745*23,706,286
*$0.5976*8,688,836
$1.543111,337,748
$1.6216$1.5405
9,965,81934.74
$1.47532,845,894
*$1.2619*22,553,702
$0.61306,409,712
4/14/12
$1.519010,202,237
$1.5919*$1.5107
*11,520,76734.67
$1.44812,586,156
*$1.2667*25,589,619
*$0.5933*8,129,718
$1.504111,502,570
$1.5693$1.4891
12,561,27134.66
$1.44082,901,903
$1.240426,198,896
$0.59318,438,527
4/21/12
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 reflect an additional month not included in this chart.
Total Contracts Traded/Open Interest
Cash-Settled NDM
258297397362372297233173117
35/2,506
APR12MAY12JUN12JUL12AUG12SEP12OCT12NOV 12DEC 12
Cash-Settled Butter
APR12MAY12JUN12JUL12AUG12SEP12OCT12NOV12DEC12JAN 13
Total Contracts Traded/Open Interest
746627760653642567620572432
2
169/5,621
145.50140.00143.00146.50147.00147.50150.00152.00153.25153.25
124.00121.75118.25118.00119.50122.00126.75128.00129.25
258303403365380316258180126
187/2,589
145.00138.00140.00144.98145.00146.75149.25151.00151.25152.00
721624760661645572619578433
2
108/5,615
124.48119.50115.00116.00118.00119.75124.00126.00127.50
258304402365380324269182126
44/2,610
146.10135.50135.75140.00140.75142.20144.25147.00146.50151.00
721619776666645565617578433
2
84/5,622
Fri., April 20 Mon., April 23 Tues., April 24 Wed., April 25 Thurs., April 26
Fri., April 20 Mon., April 23 Tues., April 24 Wed., April 25 Thurs., April 26
Total Contracts Traded/Open Interest
Fri., April 20 Mon., April 23 Tues., April 24 Wed., April 25 Thurs., April 26
APR12MAY12JUN12JUL12AUG12SEP12OCT12NOV12DEC12JAN13FEB13MAR13APR13MAY13JUN13JUL13AUG13SEP13OCT 13
Class III Milk#*
15.7615.0114.5315.0815.7016.2016.2516.1516.0415.9315.8515.9016.0815.7315.7116.1016.0216.0315.83
4,3574,8294,3543,0992,9572,5252,3152,1462,072
300174147
9737342015
76
1,532/29,498
15.7414.9814.2914.8215.5116.0716.1216.0315.9315.8115.7115.8416.0815.7315.7116.1016.0216.0315.83
4,3694,8374,4273,1182,9702,5342,3182,1622,077
302176148101
38342015
76
730/29,666
15.7314.8514.1814.7515.4316.0216.0816.0015.9015.7515.7015.8416.0815.7215.7116.1016.0216.0315.83
4,3664,8684,4763,1172,9822,5392,3272,1812,094
301178148105
42372015
76
824/29,816
Total Contracts Traded/Open Interest
Class IV Milk
APR12MAY12JUN12JUL12AUG12SEP12OCT12NOV12DEC12
14.8314.4214.4614.5714.8715.1216.0016.0016.00
338282243
836761726259
14.8314.4114.4114.5314.7814.8016.0016.0016.00
338282243
836761726259
0/1,267
14.8313.8014.0014.0514.6514.8015.9116.0016.00
338287243
836761726259
0/1,267
CME FUTURES for the week ended April 26, 2012
Fri., April 20 Mon., April 23 Tues., April 24 Wed., April 25 Thurs., April 26
5/1,272
15.7314.7914.1514.7715.5016.1016.2016.1316.0215.9315.8515.9016.0815.7015.7116.1016.0216.0315.83
14.8314.4614.5014.8015.0315.3316.0516.1516.00
124.00122.75121.75122.00123.00124.50129.00131.00131.75
145.50141.50143.58147.25149.75151.00153.50155.50156.75156.25
41/5,547
20/2,489
0/1,267
1,534/29,411
15.7715.1514.6515.1915.9016.2516.2016.1316.0315.9015.8515.9016.0315.7015.7116.0216.0216.0315.83
1,201/29,214
14.8314.4914.5314.8015.1415.4016.0516.1516.00
338282243
836761726259
0/1,267
124.00122.75121.75122.50124.25127.00131.50133.00133.00
258297391360370283231174117
30/2,481
145.50141.50143.58147.50149.50151.00153.50155.50156.75156.25
746628757620592564616568429
2
22/5,522
4,4624,7944,1393,0972,8932,5172,2902,1282,068
2971731469035311915
76
338282243
836761726259
258297391361372286233174117
746628759638594566617568429
2
124.00122.75120.75120.50122.00124.03129.00130.50131.75
4,3794,8164,2913,1252,9432,5192,2992,1322,071
3001741479435312015
76
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4 CHEESE MARKET NEWS® — April 27, 2012
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Perspective:Industry Issues
2012 — A year of policy and politics
G U E S T C O L U M N I S T C M N E x c l u s i v e !
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If ever there was a year to get in-volved in policy and politics, this is it.
This month, both the Senate and House Agriculture Committees seem to be cranking into high gear to try to address Farm Bill issues, and there is a lot at stake for dairy.
Most of the industry agrees we need new policies that work to provide a safety net for our farms, and it would be best for everyone if that safety net could appear sooner rather than later. That’s one of the messages that Jon Davis, president and CEO of Davisco Foods International, Inc., delivered this week when he testified on behalf of IDFA at the House subcommittee hearing on dairy.
Unfortunately, the problem of finding agreement on the best way to provide that safety net is far from resolved. That’s why it remains so important for members of Congress to hear from you and receive your input. They need to understand the real implications and consequences of current proposals on the table so they can make better informed decisions.
IDFA continues to ask members of Congress to adopt safety-net proposals like margin insurance or the Livestock Gross Margin – Dairy program. We like these programs because they do not attempt to help producers by impos-ing government control of the supply and demand for milk and will not have the negative consequences of supply-management programs.
We now know that a milk supply-management program, similar to the Dairy Market Stabilization program in the Dairy Security Act proposed by Rep. Collin Pe-terson, D-Minn., is included in Senate Ag-riculture Committee Chairwoman Debbie Stabenow’s, D-Mich., mark. Although this program is being sold to Congress as a way for the government to control milk price volatility, IDFA believes it will hamstring a growing dairy export business, discourage investment into processing facilities and
ultimately hurt new or expanding dairy farms by limiting increased demand for more milk production.
Even as we remain divided on con-tentious issues like this, it’s clear to me that the ultimate goal of all dairy stakeholders is the same: We want the best government policies to help the dairy industry to grow, to prosper and to market an array of increasingly innova-tive products that will meet consumer demands around the globe. The op-portunities are enormous and continue to grow, so positioning the U.S. dairy industry to take full advantage is key.
You can play a part in helping to shape the new policies that will make that happen. And IDFA will provide some op-portunities for your greater involvement.
In less than two months, we’ll hold Washington Conference, IDFA’s legisla-tive fly-in. For two days, June 20-21, our members will attend meetings with legislators and their staff members on Capitol Hill. They’ll also participate in the 30th Annual Capitol Hill Ice Cream Party (a really cool event!), which is at-tended every year by several thousand staff and members on the Hill.
As for the politics, the campaigning has already begun, with all 435 House seats up for grabs, 33 Senate seats on the ballot and, of course, the feature event at the top of the ticket deciding who gets to call the shots for the rest of the govern-ment. Will it be a continuing President Barack Obama, or a new leader such as Mitt Romney? Time will tell.
While all of the policy and politics remain incredibly relevant to your busi-ness and how it fares, as the years have gone by, there has been a steady erosion of opportunities to include Capitol Hill leaders and their staff in events taking place beyond the Beltway.
That’s why this year we’re providing an occasion in our nation’s capital for the industry to interact with key people in Congress and the administration. Our new Policy & Politics Conference, Sept. 20- 21, will showcase a variety of policy makers located in D.C. so you can hear firsthand what’s happening, why we are in the current state of flux and if they’re doing anything about it. We also hope to hear their predictions for the future.
You can make a difference in all of this through your participation and involvement. As Americans, we are for-tunate to have the rights and privileges not only to speak up and be heard, but also to vote and participate in shaping how we will be governed in the future.
Everything we have and want for our kids and grandkids is at stake in the No-vember elections. Don’t sit on the sidelines — join us in D.C. for our June fly-in and September Policy & Politics Conference. Get involved and make a difference! CMN
The views expressed by CMN’s guest columnists are their own opinions and do not necessarily reflect those of Cheese Market News®.
Reprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
April 27, 2012 — CHEESE MARKET NEWS® 5
For more information please visit www.wsus.comFor more information please visit www.jacoby.com
NEWS/BUSINESS
WASHINGTON — The Senate Com-mittee on Appropriations this week released funding decision for fiscal year 2013 on programs related to public health and safety, as well as domestic and international nutrition assistance.
Summaries include:• FDA: The fiscal year 2013 bill pro-
vides $2.524 billion for FDA. Included in this amount is an increase of $12.5 million for implementation of the Food Safety Modernization Act.
• Food Safety and Inspection Ser-vice: The fiscal year 2013 bill provides $1.001 billion for the Food Safety and Inspection Service. This includes an increase above the budget request for federal inspection activities and the full funding requested in the budget for state and international inspection activities.
• Domestic nutrition: The fiscal year 2013 bill provides $7.041 billion for the Special Supplemental Nutrition Program for Women, Infants, and Chil-dren (WIC). This level will fully fund participation in the program.
• Foreign food assistance: The fiscal year 2013 bill provides $1.466 billion for
Senate Appropriations Committee releases decisions on funding for fiscal year 2013
PL 480 Title II, the same level as fiscal year 2012 and $66 million more than the budget request.
• Research: The fiscal year 2013 bill provides $1.239 billion for the Na-tional Institute on Food and Agriculture (NIFA) and $1.101 billion for the Agri-cultural Research Service. Specifically within NIFA, the Agriculture and Food Research Initiative is funded at $298 million, the Hatch Act is funded at $236 million and the McIntire-Stennis Cooperative Forestry program is funded at $33 million.
• Rural Development: The fiscal year 2013 bill provides $2.276 billion in budget authority for rural development, which maintains loans and grants to small and remote rural communities.
• Farm Service Agency: The fiscal year 2013 bill provides $411 million for farm loan programs. The bill pro-vides $1.208 billion for salaries and expenses.
• Conservation: The fiscal year 2013 bill provides $828 million for the Natural Resources Conservation Service. The bill does not include funding for the Wa-tershed Rehabilitation Program. CMN
Reprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
6 CHEESE MARKET NEWS® — April 27, 2012
NEWS/BUSINESS
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CHICAGO — The office of the U.S. Attorney of the Northern District of Illinois has announced that four people involved in shipping more than 110,000 pounds of Mexican cheese in 2007 recently were indicted on federal charges for allegedly conspiring to distribute the cheese throughout the United States despite FDA orders that it be held for inspections, which later determined that samples were adulter-ated with Salmonella, E. coli and other illness-causing bacteria.
One defendant owned the Illinois company that imported the dried Mexi-can cheese to the United States, and another defendant owned a Wisconsin company that had a facility in subur-ban Elmhurst, Ill., and distributed the cheese to customers nationwide. All four defendants were charged with conspiring to illegally distribute the cheese, to “wash” cheese returned by dissatisfied customers by scraping off mold and fungus so that it could be resold, and to cover up their distribu-tion of the cheese by lying to an FDA inspector and by creating and sending a false document to the food safety agency, federal law officials say.
The six-count indictment returned by a federal grand jury yesterday does not allege any instances of illness or other public health consequences attributed to distribution of the cheese, says Patrick J. Fitzgerald, U.S. attorney for the Northern District of Illinois.
The Wisconsin company that dis-tributed the cheese to retail stores in Illinois, Indiana, Michigan, Georgia and Texas under the brand name
Four charged with conspiring to deliver tainted Mexican cheese in United States
Quesa Cincho De Guerrero issued a recall in September 2007 for the dry, hard Mexican cheese that was sold in 25- and 40-pound wheels.
The names of the companies were not released, but the defendants and their roles as described in the indict-ment are:
• Guadalupe Zurita, also known as “Jose Zurita,” of Villahermosa, Mexico, who owned and operated “Company C,” an Illinois corporation that dissolved in February 2007 but continued to operate, and which im-ported Mexican specialty cheese and dried Mexican peppers from a plant in Villahermosa.
• Miguel Leal of Monroe, Wis., who was president and owner of “Company A,” which produced cheese at a plant in Darlington, Wis., that was shipped to customers in other states and which also had a facility in Elmhurst, Ill., from April 2007 to October 2008. Leal owned Company A until it was sold in July 2007 to Company B, a Mexican corporation.
• Cynthia Gutierrez of Cicero, Ill., who was Company A’s finance and operations manager before it was sold to Company B, and who worked at the Elmhurst facility from April 2007 until October 2008; and
• Baldemar Zurita, also known as “Tony Zurita,” of Chicago, who is Guadalupe Zurita’s brother and who was employed by Company C between at least March and September 2007.
All four defendants were charged with conspiracy to violate the fed-eral Food, Drug and Cosmetic Act by introducing adulterated cheese into interstate commerce and three counts of violating the food safety law. Leal, Gutierrez and Guadalupe Zurita were charged with obstructing the FDA by allegedly concealing the sale and dis-tribution of 311 boxes of dried Mexican cheese, and Gutierrez and Guadalupe Zurita also were charged with obstruct-ing the FDA by allegedly making a false bill of landing referencing the 311 boxes and submitting the document to an FDA inspector.
Baldemar Zurita was arraigned earlier this month and pleaded not guilty. He is released on bond, and his next court date is May 30. Leal and Gut-tierrez are scheduled to be arraigned in early May. A warrant is being issued in the United States for Guadalupe Zurita, who lives in Mexico.
The conspiracy count and one of the FDA obstruction counts carry a maximum prison term of five years, while each count of violating the Food, Drug and Cosmetic Act carries a maxi-mum of three years in prison. The FDA obstruction count against Gutierrez and Guadalupe Zurita carries a maxi-mum of 20 years in prison, and each of the six counts in the indictment car-ries a maximum fine of $250,000. CMN
Reprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
April 27, 2012 — CHEESE MARKET NEWS® 7
NEWS/BUSINESS
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NEW YORK — The National Asso-ciation for the Specialty Food Trade (NASFT) recently announced the Silver Finalists for the Part 1 categories of the 2012 sofi Awards. The finalists in Part 2 categories are scheduled to be announced the week of May 21, and the Gold Awards will be announced June 18 after final judging at the Summer Fancy Food Show in Washington D.C.
Standing for “specialty outstanding food innovation,” the sofis, formerly known
Specialty cheeses among Silver Finalists named in Part 1 of NASFT’s 2012 sofi Awardsas the NASFT Product Awards, have hon-ored the most outstanding specialty foods since 1972. The Silver Finalists are selected at the NASFT offices in New York by a national panel of specialty food retailers, foodservice professionals and journalists.
There are 30 award categories in Part 1, including Cheese or Dairy Product, USDA-Certified Organic Product and others. Part 2 of the sofi Awards includes two categories: Outstanding New Product and Outstanding Product Line.
This year’s Silver Finalists in the Cheese or Dairy Product category include: Fig Breakfast Cheese, Belle Chevre; Triple Cream Goat Cheese, Coach Farm; Kaltbach cave-aged Le
Gruyère Switzerland AOC, Emmi Roth USA Inc.; Vermont Leyden, Grafton Village Cheese Co.; and Bonne Bouche, Vermont Butter and Cheese Creamery.
Cheeses that were named Silver Finalists in the Classic category include Humboldt Fog, Cypress Grove Chevre; and Oregon Blue, Rogue Creamery. Rogue Creamery’s Flora Nelle also was named a Silver Finalist in the USDA-Certified Organic Product category.
Additionally, Coach Farm’s Grating Stick and Vermont Butter and Cheese Creamery’s Cultured Butter with Sea Salt Crystals 1-ounce Minis were named Silver Finalists in the Perishable Foodservice Product category, and Carrie’s Fiery Pi-
mento Cheese from Callie’s Charleston Biscuits was a Silver Finalist in the Ap-petizer, Antipasto, Salsa or Dip category. In the Dessert or Dessert Topping category, Bourbon Burnt Sugar from High Road Craft Ice Cream Inc., Lemon Frozen Yogurt from Jeni’s Splendid Ice Creams and Bar Gelato - Pistachio from Gelateria Naia were among the Silver Finalists.
Other Silver Finalists with cheese ingre-dients include Betsy’s Blue Cheese Straws from Betsy’s Cheese Straws in the Cracker category; Flax Seed Parmesan Crisp from Kitchen Table Bakers in the Diet and Lifestyle Product category; and Cheese & Chive Biscuits from Callie’s Charleston Bis-cuits in the Frozen Savory category. CMN
Alliance research center now open for public useBy Alyssa Sowerwine
STURTEVANT, Wis. — A research cen-ter that has been in operation privately since 2008 recently announced it is now being launched for public use.
The Alliance Dairy Research Center (ADRC), located in Sturtevant, Wis., offers a pilot plant facility, a lab and support staff to meet a variety of product and process research and development needs for dairy processors and manu-facturers making products from cow’s milk, goat’s milk and sheep’s milk, says Brandon Malacara, director, ADRC.
The facility was built in December 2007 and was dedicated to research and development for one company, but 3,000 square feet of space now is being commercialized for public use.
He notes that the ADRC is cost-effective, flexible and has immediate availability.
In addition, it is the only third-party research facility in Wisconsin that works with processors making products from goat and sheep’s milk, as well as cow’s milk, he adds.
The space is equipped with separa-tors, tanks, homogenizers and other capabilities for making cheese, butter, milk and yogurt. There also is an analyti-cal lab on site.
Malacara notes there are technicians who operate the facility and are avail-able for support.
“We also have other experts on staff, such as a food scientist and analytical chemist,” he says.
Malacara says the center is ideal for smaller companies who are looking to do research and development but do not have the infrastructure in place or do not want to disrupt their own production.
The cost of using the facility and/or expertise is determined on a case-by-case basis for each company, he notes.
He adds that the center is currently installing equipment for making cul-tured products.
“One of the first companies to ex-press interest in the center is a whey company,” he notes.
For more information, contact Malacara at 262-898-7492, e-mail [email protected] or visit www.alliancedairy.com. CMN
Reprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
8 CHEESE MARKET NEWS® — April 27, 2012
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NEWS/BUSINESS
WASHINGTON — Total natural cheese stocks in refrigerated warehouses on March 31, 2012, were 1.005 billion pounds, up 2 percent from the end of February 2012’s 988.3 million pounds but down 2 percent from the 1.03 billion pounds in cold storage at the end of March 2011, according to data recently released by USDA’s National Agricultural Statistics Service (NASS).
American cheese in cold storage totaled 621.9 million pounds as of March 31, 2012, up 2 percent from Feb. 29’s 607.7 million pounds and up 2 percent from March 31, 2011’s 611.2 million pounds.
Swiss cheese in cold storage totaled 28.6 million pounds March 31, 2012, up
Cheese stocks decline, butter stocks climb6 percent from Feb. 29’s 27.0 million pounds but down 12 percent from the 32.6 million pounds in cold storage at the end of March 2011.
Other natural cheese in cold storage totaled 354.0 million pounds March 31, 2012, up less than 1 percent from the 353.5 million pounds in cold storage Feb. 29, 2012, but down 8 percent from the 385.7 million pounds of other natural cheese in cold storage a year earlier.
NASS reports butter in cold stor-age as of March 31, 2012, totaled 210.6 million pounds, up 3 percent from the previous month’s 205.2 million pounds and up 46 percent from March 2011’s 144.2 million pounds. CMN
CHICAGO —A study recently published in the Journal of Dairy Science shows that it may be possible to achieve the suggested daily intake of omega-3 fatty acids by incorporating them in a serving of savory-flavored yogurt.
“The international popularity of yogurt and the health-promoting prop-erties associated with probiotics, miner-als, vitamins and milk proteins suggest yogurt could be an excellent vehicle for the delivery of omega-3 fatty acids,”
Study suggests omega-3 fatty acids could be incorporated into savory-flavored yogurtsays Susan E. Duncan, lead author of the study and professor and director of the Macromolecular Interfaces with Life Sciences Program, Food Science and Technology, Virginia Tech. “Recent innovations in exotic yogurt flavors provide innovation opportunities.”
The researchers tested different levels of fish oil in a savory chili and lime-flavored yogurt. In a preliminary study, tasters could not differentiate between low levels of fish and butter
oils in unflavored yogurt, but they could discern yogurt flavored with oxidized fish oil, which has a strong fishy taste. A second panel underwent six hours of training so that they could accurately describe and measure lime, sweet, heat, acid and oxidized flavor attributes. They found the fish flavor more pronounced than the lime and acid characteristics in a chili-lime-flavored yogurt forti-fied with 1 percent oxidized fish oil, compared with yogurts containing 0.43 percent or 1 percent fresh fish oil. The oxidized flavor was higher in chili-lime yogurts containing oxidized fish oil and a high level (1 percent) of fresh fish oil.
In a second study, 100 untrained consumers who were classified as gener-
ally nutritionally motivated and aware of the health benefits of omega-3 fatty acids evaluated the overall acceptance and flavor acceptance of chili-lime yogurt enriched with butter oil or fish oil. Fifty percent of the tested group rated chili-lime-flavored yogurt fortified with 1 percent butter oil or fish oil on the positive end of the scale (“liked ex-tremely” to “neither liked or disliked”). Thirty-nine percent reported they would be highly likely or likely to consume the chili-lime-flavored yogurt on a regular basis. The low overall acceptance of the product by the remaining 50 percent of the tested group may be attributed to the chili-lime flavor or the lack of sweetness in the product, the authors say. CMN
DENVER — The American Cheese Society (ACS) is now accepting entries for the 2012 ACS Judging & Competition, which will take place in Raleigh, N.C. in conjunction with the annual ACS conference Aug. 1-4.
The deadline for on-time entries is May 18, and the deadline for late entries is May 25. Entry fees are $60 for on-time entries and $85 for late entries. Entries received after May 25 will not be accepted.
ACS offers online entry system for contestThis year, ACS has launched its
first-ever online Judging & Competition entry system. ACS says it encourages all entrants to use the online system for speed and accuracy, but they also can enter via mail or fax.
For entry guidelines, instructions and more information, visit www.cheesesociety.org/competition/enter/, call 720-328-2788 or e-mail [email protected]. CMN
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April 27, 2012 — CHEESE MARKET NEWS® 9
NEWS/BUSINESS
For more information please visit www.unitedindustries.com
WASHINGTON — The Consortium for Common Food Names (CCFN), in cooperation with the U.S. Dairy Export Council (USDEC), sponsored participa-tion in a Japanese expert working group session focused on the future develop-ment of geographical indication (GI) regulations in Japan.
Japan’s Ministry of Agriculture launched the expert working group to develop recommendations on how it can introduce a new system of protecting GIs. The working group is charged with providing recommendations to the Min-istry of Agriculture this summer to form the basis for interagency discussions on a proposal.
Details upon which criteria Japan will use in considering GI applications and the scope of protection granted to ap-proved GIs holds significant importance for many of Japan’s trading partners, as well as consumers and retailers in Japan.
Consortium for Common Food Names, USDEC discuss GI regulations with Japanese officialsThe country is a leading importer of a wide range of food products, increasingly including specialty cheeses, from many suppliers around the world.
During the working group session, CCFN consultant Craig Thorn noted trade and market problems that can arise when a single group is permitted to monopolize a generic product name. He also described at length the alterna-tive regulatory paths that the Japanese government could pursue to prevent disruptions from occurring.
Thorn met with several officials from Japanese ministries handling agricul-ture, trade, foreign affairs and intellec-tual property protection and discussed
the importance of preserving common food names if Japan moves forward with the adoption of a GI registration system.
“The Consortium for Common Food Names believes it is critical to work with countries directly as they consider regulations that have the potential to seriously disrupt trade and confuse consumers if not carefully developed,” says Jaime Castaneda, executive direc-tor, CCFN. “We would like to thank the government of Japan for the opportunity to discuss these issues directly with those developing GI policy in Japan.”
The Consortium for Common Food Names and its members oppose any attempt to monopolize generic names
that have become part of the public do-main, such as parmesan, feta, provolone, bologna, salami and many others. Con-versely, the consortium is not opposed to the proper use of GIs in cases such as “Camembert de Normandie” or Florida oranges and supports the use of such names to promote distinctive products. (See “Consortium seeks to protect right to common food names” in the March 30, 2012, issue of Cheese Market News.)
As the Japanese Working Group continues to meet over the coming months, CCFN says it will remain in-volved in the process to underscore the importance of maintaining the rights of all to use common food names. CMN
Fermented milks could help survival of some probioticsOSLO, Norway —Scientists from the Norwegian University of Life Sciences have developed a “model gastric system” for evaluating the survival of probiotic bacteria strains in the human diges-tive system and determined that some bacteria strains are more effective when consumed in fermented milks, according to a recent study.
Researchers tested five bacteria strains — including two found in fer-mented milk products — to see if the strains could survive exposure to acidic conditions and bile salts. The bacterial strains were tested both as pure cells from cultured media and in the form of fermented milk.
“Most of the bacterial strains we tested have interesting functional properties related to food products. We wanted to evaluate whether these strains could contribute with beneficial health functions, or even have the potential as probiotics for human consumption,” says Professor Siv Skeie, lead researcher.
The bacteria also were subjected to a process that mimicked the human digestive system, incubating the bacteria in human gastric and duodenal juices at body temperature.
According to the study, the initial testing in acid and bile salts found that Lactobacillus strains — found in fermented milk — had a significantly higher acid tolerance than other strains.
“This could mean that (these strains) are able to resurrect their viability if they are exposed to more suitable conditions like those in the small intestine. This is very interesting because it is in the intestine that functional or probiotic bacteria confer their health benefit to the host,” says Skeie. “These results seem to confirm that foods, such as fermented milks, could be a protective matrix en-hancing survival of some bacteria.” CMN
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10 CHEESE MARKET NEWS® — April 27, 2012
NEWS/BUSINESS
For more information please visit www.toraywater.com
DENVER — The American Cheese Society (ACS) recently released two documents in response to recent atten-tion around the issue of raw milk cheese safety in the United States.
The first is an official “Statement on the Safety of Raw Milk Cheese.” In this statement, ACS declares;
“Raw milk cheese, when produced and sold under current FDA guidelines, can be consumed without unnecessary risk. The American Cheese Society
American Cheese Society releases two documents on raw milk cheese, dairy products(ACS) endorses current FDA raw milk cheese guidelines for manufacturers, including:
• Producing cheese in licensed facilities that are routinely inspected on the local, regional and federal level,
• Producing cheese under the over-sight of licensed dairy handlers, and
• Aging cheese for a minimum of 60 days before it is sold.”
ACS adds that approximately two-thirds of its members voluntarily exceed
these standards by establishing and adhering to a Hazard Analysis & Criti-cal Control Points (HACCP) plan and following additional ACS-recommended best practices.
ACS also released a response to a recent study, “Nonpasteurized Dairy Products, Disease Outbreaks, and State Laws — United States, 1993-2006,” from the Centers for Disease Control and Prevention (CDC).
In this response, ACS says it calls atten-tion to misleading language that conflates fluid raw milk with raw milk cheese.
“ACS is disappointed that this study conflates two very different products
— raw milk cheese and fluid raw milk — and fails to differentiate between cheeses made in accordance with FDA law, and cheeses produced illegally,” ACS says in its response. “By asserting that all raw dairy products are alike, the study paints an unfair picture of raw milk cheeses produced and sold legally in the marketplace today. In the future, we strongly encourage research-ers to take this into consideration, and we ask journalists and media organiza-tions to adequately fact-check such statements.”
To read both documents, visit www.cheesesociety.org. CMN
MONROE, Wis. — Quest Industrial LLC has received the Fanuc Robotics 2011 Innovation Award for developing innovative robotics technology used for cheese cutting and other applications.
The award — which Quest Industrial received at the 13th Annual Fanuc Robotics Integrators Conference held in Orlando, Fla., in March — was pre-sented for innovations that create new opportunities for robots to be used, notes Ed Rooney of Fanuc Robotics.
“This is only the second time this award has been given out; it’s quite an honor that our team has been selected
Quest Industrial receives Fanuc Robotics 2011 award for cheese cutting technology
among our peers, professionals and experts,” says Don Wickstrum, owner, Quest Industrial.
Quest Industrial specializes in robot-ics that perform a wide array of func-tions that include cutting cheese and using vision to sort automotive parts.
“It’s just the mind set we have at Quest, we are always looking at how we can make things better,” says Adam Nelson, manager, Quest Industrial. “We have always felt that we cannot sit still; we must always be aware of what our customers need to be successful and find a way to meet that need.” CMN
CHICAGO — Silliker Inc. has an-nounced its microbiology laboratory in Lakeland, Fla., has been accredited to ISO 17025, the international standard for testing and calibration laboratories to ensure compliance with management and technical requirements.
“The receipt of ISO 17025 reflects the competence of Lakeland’s team and strength of our internal quality systems,” says William Vernier, vice president of operations for Silliker. “Having the utmost confidence in the integrity of
Silliker Fla. lab receives ISO accreditationanalytical data is critical in supply chain management. We provide this brand assurance to customers by going above and beyond industry standards.”
The American Association for Lab-oratory Accreditation conducted the evaluation process.
The Lakeland facility provides ex-pert testing services to area proces-sors, manufacturers, retailers, distrib-utors and foodservice establishments.
For more information on Silliker, visit www.merieuxnutrisciences.com. CMN
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April 27, 2012 — CHEESE MARKET NEWS® 11
NEWS/BUSINESS
WASHINGTON — Many low- and middle-income countries do not have techno-logically-advanced regulatory systems, which limits their oversight of food and drug safety, according to a recent report from the Institute of Medicine (IOM) that recommends a number of steps that FDA and other organizations can take to bolster the safety systems in developing nations.
According to the report, product safety in the United States “depends on systems in faraway places.” However, FDA “cannot do its job well without substantive improve-ments in the capacity of their counterpart agencies in emerging economies.”
The report identifies nine common problems that cut across developing country product safety systems, including: adherence to international standards, which requires good infrastructure and expensive equipment; problems in control-ling supply chains; infrastructure deficits, such as lack of refrigeration; lack of laws governing product safety; government regulators having too few staff; scattered regulatory responsibilities; poor surveil-lance systems; communication problems; and accountability and priority problems.
Among the report’s recommendations is that in the next three to five years, international and intergovernmental organizations should invest more in strengthening the capacity of regulatory systems in developing countries.
There is common ground where food and medical product safety, public health, trade and economic development are mutually reinforcing, the report says.
In addition, in emerging economies, national regulatory authorities, regu-lated industry and industry associations should engage in open and regular dialog to exchange expert scientific and tech-nical information before policies are written and after they are implemented, the report says, noting that a robust regulatory system depends on input from industry and academia.
Countries with stringent regulatory agencies — including the United States, European Union member states, Japan, Canada, Australia, New Zealand, Norway, Iceland and Switzerland — should, within the next 18 months, share their inspection reports of facilities in develop-ing countries, the report says.
“This is a simple step that could reduce a great deal of waste,” the report says. “There is no need for American and Euro-pean inspectors to duplicate each other’s work, especially when a vast number of facilities go uninspected.”
In addition, industry associations should, over the next three years, decide what international inspection results they should share, as sharing inspection results is sensitive but crucial to an efficient prod-uct safety system, the report notes.
Starting in the next five years, FDA, USDA, the Centers for Disease Control and Prevention and the U.S. Agency for International Development should pro-vide technical support for strengthening surveillance systems in developing coun-tries, the report says. This support could
Report from the Institute of Medicine encourages stronger regulatory systems overseasinclude development of surveillance tools, protocols for foodborne disease surveil-lance and training of national regulatory authority staff and national experts.
In the next three to five years, the report says FDA should use risk assess-ments to run its international programs: to choose which offices to scale up, what trainings to run and where to run them, the report adds. In the next 10 years, FDA should use risk assessments to determine how it allocates its resources to both domestic and international programs.
In addition, FDA should use its diplo-matic staff abroad and its gravity at inter-national forums to facilitate the training of foreign regulators, though not necessarily to host the training, the report says. There
should be a predictable, standing regula-tory science and policy curriculum that regulators from abroad could work through.
U.S. policymakers should integrate food and medical product safety objectives into their international economic develop-ment, trade, harmonization and public health work, the report says. To this end, FDA should lead in the development and adoption of international and harmonized standards for food and medical products.
FDA also should ensure an adequate mix of incentives to importers of food and medical products that are confirmed to meet U.S. regulatory standards, the report notes. One such promising initiative is the two-year FDA Secure Supply Chain pilot program, which rewards firms that trace
their products thoroughly from manufac-ture to entry into the United States.
Results from this pilot program should be evaluated with the goal of expanding the project to include more importers and more products in the next three to five years, the report says.
Finally, over the next 10 years, U.S. government agencies should work to strengthen the ability of those harmed by unsafe food to hold foreign producers and importers liable in civil lawsuits, the report says.
To view the full report, visit http://www.iom.edu/Reports/2012/Ensuring-Safe-Foods-and-Medical-Products- T h r o u g h - S t r o n g e r- R e g u l a t o r y -Systems-Abroad.aspx. CMN
For more information please visit www.foremostfarms.com
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12 CHEESE MARKET NEWS® — April 27, 2012
For more information please visit www.chr-hansen.com
Sealed Air unveils Cryovac Multi-Seal FoldLOK packaging for dairy processorsELMWOOD PARK, N.J. — Sealed Air Corp., Elmwood Park, N.J., recently launched Cryovac Multi-Seal FoldLOK packaging for dairy manufacturers.
The easy-open, reclosable packaging features a front tear-off rather than top tear-off and can be folded over the top to reseal packaging, says Scott Bossong, dairy marketing director, Sealed Air Corp.
“We’ve improved our sticking mecha-nism,” he says. “And there’s no zipper, which sends a sustainable message. There’s less material involved in the packaging.”
Bossong notes the package is easier to open for consumers and is ideal for packaging shredded cheeses.
“The product also pours easier from the package because there is no zipper ridge to contend with,” he says.
In addition, the packaging has benefits for retailers because it is smaller and easier to pack many into one box for an efficient use of retail space, he adds.
For more in format ion , con-tac t Bossong a t 864 -433 -7123 , e-mail [email protected] or visit www.sealedair.com. CMN
AUTOWEIGHER linear scales aim to reduce product giveawayLAS VEGAS — AUTOWEIGHER linear scales can help growing companies reduce labor costs and product giveaway associ-ated with manual filling, says WeighPack Systems Inc.
Available in 1- or 9-quart models and with one, two or three pans for increased accuracy, product is fed automatically from the hopper along a vibrating pan into the weigh bucket below. When the target weight is reached, product is released through a funnel into a container or bag below.
Operating at speeds up to 15 cartons per minute in automatic or semi-automatic mode, the tool-less disassembly of the hop-per, weigh bucket and funnel can minimize downtime when cleaning or changing the product. Pneumatics are not mounted on the weigh bucket, eliminating the risk of contamination in air lines. Built with food grade 304 S/S, the AUTOWEIGHER displays product weight in imperial or metric measurements and includes a foot pedal for semi-automatic operation. As a stand-alone unit, the AUTOWEIGHER can be set on a table top or floor stand and can easily interface with auxiliary equipment at a later date, the company says.
Available with many different fin-ishes and options, the AUTOWEIGHER can weigh a very wide range of products.
For more information, visit www.weighpack.com or call 888-934-4472. CMN
COPENHAGEN, Denmark — DuPont Inc. says its new CHOOZIT SWIFT Cheese Cultures can increase efficiency in pizza cheese processing through phage management and consistent acidification.
CHOOZIT SWIFT cultures can help optimize process time and minimize product downgrades because they can be interchanged without unwanted product variability, the company says.
The cultures contain a concentrated blend of highly active Streptococcus thermophilus cultures and are avail-able in various levels of phage-robust, isofunctional starters that are designed for direct inoculation in the cheese vat.
Because of their identical func-
DuPont offers culture series to enhance efficiency in pizza cheesetionality, the starters can be ro-tated without altering the recipe or process, allowing a consistent quality of cheese from vat to vat.
“Achieving consistency and reliabili-ty is a major hurdle for pizza cheese man-ufacturers. Every gram of fat or protein and every minute lost during processing have an impact on performance,” says Annie Mornet, global business director of CHOOZIT, DuPont Nutrition & Health.
The new culture range marks the first commercial use of Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR) technology in the cheese industry. DuPont says it uses CRISPR to develop cultures with a natural, built-in immunity to the phages that com-
monly attack during cheese production.Unlike the cultures used for con-
ventional rotations in fermented dairy plants, CHOOZIT SWIFT are characterized by identical function-ality, allowing each member of the rotation to perform in exactly the same way. The only difference lies in their phage immunity, a DuPont pat-ented technology, the company says.
“This is what makes CHOOZIT SWIFT so fast, safe and easy to use. Manufacturers can add any one of the three starters and still end up with exactly the same pizza cheese at the end of the processing line,” Mornet says.
For more information, v is -i t w w w . d a n i s c o . c o m C M N
NEW PRODUCTS FOR DAIRY MANUFACTURERS
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April 27, 2012 — CHEESE MARKET NEWS® 13
C-9 TigerScale conveyor, Bingo Bagger designed for delicate foodsLAS VEGAS — WeighPack Systems Inc. has introduced the Bingo Bagger, a horizontal bagging system that can be coupled with the company’s C-9 Tiger-Scale, a conveyorized automatic scale, to package delicate food products.
The pairing is designed to handle a range of food products, including shred-ded cheese, diced cheese and cheese curds, says John Brown, sales and mar-keting coordinator, Weigh Pack Systems.
Available in single-lane and dual lane models, the C-9 TigerScale operates at speeds up to 25 cartons per minute, in weights ranging from 1 ounce to 10 pounds. An open-frame design provides easy access to components. Pneumatics are not mounted to the weighbucket and do not have to be disconnected, eliminat-ing the risk of air-line contamination, the company adds.
Using pre-made wicketed bags made of polyethylene or laminate materials, the Bingo Bagger automatically opens, fills and seals the bag. All contact parts are made with food-grade 304 stainless steel. Working with pouches as small as 6-14 inches wide (14-20 inches with Bingo XL), the Bingo uses horizontal sealing bars to seal both zippered and stand-up pouches, the company says.
The Bingo Bagger is operated with touch-screen controls and uses vertical seal jaws that reduce the overall length of the machine. It’s available with right-to-left or left-to-right discharge and features a stationary product funnel, adjustable bag wicket holders and pins, independent pneumatic cylinder, digital temperature control and a stationary bag seal station.
For more information, visit www.weigh pack.com or call 1.888.934.4472. CMN
ARLINGTON HEIGHTS, Ill. — ITW Muller says it has introduced REDUCER, its new machine stretch wrap film, for manufacturers who want to minimize stretch film usage without compromis-ing the integrity of pallet loads.
The high strength, thin gauge film is produced using a proprietary for-mulation and has the highest force-to-film weight ratio on the market. The five-layer, cast metallocene formula-tion and unique structure allows for a thinner, yet stronger film that protects the product better than most machine stretch wrap films on the market to-day, the company says.
“REDUCER is the best down-gauge film in the industry,” says Michael
ITW Muller’s REDUCER aims to help reduce shrink wrapping costsKlear, market development manager, ITW Muller. “By using a down-gauge film customers can reduce the amount of film used, allowing them to mini-mize waste and meet greater sustain-ability goals.”
ITW Muller says it has successfully converted customers using 70-80 gauge films to the REDUCER, resulting in savings of 10-20 percent. Beyond cost savings, REDUCER film also contains superior containment. It can be pre-stretched up to 300 percent without compromising the stiffness required to secure and retain loads, the company says. In addition, it has a high level of puncture resistance and low level of film breaks. The REDUCER unwinds
quietly, reducing warehouse noise. It is crystal clear, even at low stretch lev-els, enabling greater product identifi-cation and bar code reading.
“As both a film and equipment manufacturer we understand the im-portance of maximizing productiv-ity while minimizing costs associated with stretch wrapping,” says Klear. “Our REDUCER film is just one more example of a product we created that meets multiple industry demands.”
Available in 43 and 63 gauge, RE-DUCER comes in 20- or 30-inch widths and 7,500- or 10,500-foot lengths.
For more information, visit www. itwmuller.com, e-mail sales@itwmuller .com, or call 800-628-6787. CMN
GEA Process releases powder analysis systemDÜSSELDORF, Germany — GEA Pro-cess Engineering recently launched POWDEREYE, a new system for in-line powder analysis that allows producers of food and dairy powders to perform product quality tests during spray drying.
POWDEREYE performs in-line sampling and analysis in timed fre-quencies, which allows for better moni-toring of the spray drying process and improves product quality and consis-tency, says GEA Process Engineering. The analysis includes powder moisture content, powder bulk density, powder temperature and scorched particles.
POWDEREYE doesn’t require complicated calibration and can be used for a wide range of applications.
For more information, visit www.geagroup.com. CMN
For more information please visit www.niroinc.com
NEW PRODUCTS FOR DAIRY MANUFACTURERS
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14 CHEESE MARKET NEWS® — April 27, 2012
For more information please visit www.iddba.org
KANSAS CITY, Mo. — Dairy Farm-ers of America Inc. (DFA) named the 2012 recipients of its Members of Distinction program, which recognizes members that embody the coopera-tive’s core values, at its annual banquet March 20.
Each year, seven dairy farm families from across the nation are honored — one family from each of DFA’s seven regional areas:
• Miller Dairy, Hutchinson, Kan., was named DFA’s Member of Distinc-tion for the co-op’s Central area. Fourth-generation Miller family dairy farmers Orville and Mary Jane Miller have found ways to give back to their community. Since 2006, the family
PEOPLE
DFA recognizes its Members of Distinctionhas hired paroled inmates from sur-rounding prisons to work on the farm. Over the years, their employees have become more than just workers — they have become family. In addition, the couple’s youngest son, Brian, recently returned to the farm to follow in his parents’ footsteps.
• Alpine Hills Swiss Farm, Dry Ridge, Ky., was named the Midwest area Member of Distinction. Dean and Debbie Colson began hosting farm tours in 2010 that have helped educate consumers about the benefits of milk. Last year more than 2,000 visitors came to their dairy. The tours are designed to
Turn to MEMBERS, page 15 D
EVENTS
MADISON, Wis. — The Wisconsin Center for Dairy Research will spon-sor a short course on cheese grading and evaluation at the UW-Madison campus June 5-7.
The three-day introductory course will cover the principles and practices used in grading natural cheeses and is intended for cheese-makers, production supervisors and quality control personnel.
The course will be structured around the cheese grading stan-dards covered by Wisconsin Agricul-ture chapter 81 and USDA grading standards. Cheeses used in lab sessions will be selected to show the majority of flavor, body, texture, color and appearance defects found in the industry today. The course qualifies as an elective course for the Wisconsin Master Cheesemaker program.
For more information, visit www.cdr.wisc.edu, send a request for registration information to CALS Outreach Services, 620 Babcock Drive, Madison, WI, 53706; or call 608-263-1672. CMN
Cheese grading, evaluation short course to be held June 5-7 in Wis.
MADISON, Wis. — The Dairy Busi-ness Innovation Center (DBIC) invites current and potential dairy processors and business owners to its Keys to Profitability workshops to be held June 6 and June 8.
The workshops will feature an in-depth look at creating a profit-able business model through under-standing the marketplace, business planning, branding, promotion and pricing.
“Many businesses, start-ups as well as existing companies, are great operators and often good marketers, but most don’t have a
Dairy Business Innovation Center to hold profitability workshops June 6 and 8 in Wis.
good sense of whether or not they are making enough money to justify their investment of time and capi-tal,” says Rich Scheuerman, DBIC business strategy and workshop leader. “They put in all those hours and really don’t know if they are doing well or just scraping by. This DBIC workshop will help attendees understand how to evaluate their business planning, promotion and pricing to increase their chances for success. No one wants to miss profitable sales because they price their products too high, leave money on the table by pricing them too low, fail to tell their brand’s story effectively, or not thoroughly evalu-ate their marketplace competition.”
The workshops will be held June 6 from 10:30 a.m. to 3 p.m. at the Fond du Lac Library, Fond du Lac, Wis., and June 8 from 10:30 to 3 p.m. at the L.E. Phillips Memorial Public Library, Eau Claire, Wis.
In addition to DBIC profession-als, each workshop will feature a veteran cheesemaker from the region to share their insights into the marketplace and the keys to their success. The cost for at-tending one of the workshops is $75 and includes lunch as well as workshop materials. For more in-formation or to register, visit www.dbicusa.org/conferences.php. CMN
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April 27, 2012 — CHEESE MARKET NEWS® 15
on cow comfort and employees’ work envi-ronment. The result is an engaging place to work for employees and higher quality milk from their herd. The family is active in the industry and also contributes to help meet the needs of an orphanage in Juarez, Mexico, by making regular trips with food, supplies and cash donations.
• W&J Bylsma Dairy, Oakdale, Calif., was named the Western area Member of Distinction. Willie Bylsma has been using innovation throughout his 42-year dairy career to grow his operation and mentor young dairy producers. One of the first in his area to experiment with cross-breeding, Bylsma now welcomes other producers onto his operations to show them firsthand how he is achieving improved health and higher quality milk from his herd. Bylsma credits his farms’ success to the support of his family. CMN
give guests a positive experience on a real family farm and a firsthand look at modern agriculture.
• Morgan Ranches, Circleville, Utah, has been named Mountain area Member of Distinction. Paul Morgan and his sons designed and built the facility themselves, taking an unconventional approach for their area by choosing to install a 60-cow rotary parlor and cross-vent barn. After expanding gradually from eight cows to 2,300 over the course of more than 60 years, the Morgan family is continuously progressing.
• R.A. Bell & Sons Dairy, Hamp-stead, Md., has been named the North-east region Member of Distinction. When Ryan and Ruth Bell bought R.A. Bell & Sons Dairy in 2008, they had no idea what was to come. After the price drop of 2009, the family stuck together to not only survive the down price cycle, but actually improve their herd’s performance. By focusing on cow comfort and nutrition, the fam-ily increased production and milk quality.
• Edgewood Dairy, Purdy, Mo., was named the Southeast area Member of Distinction. Owner Charles Fletcher was one of the first dairymen in Missouri to convert his family’s conventional dairy to the New Zealand grazing platform in 2007. By monitoring the farm’s forages, Charles doubled his herd size and cut the herd’s feed and veterinary costs in half. The Fletchers are passionate about sharing their success of management-intensive grazing with others on and off the farm. Each year, hundreds of producers visit their operation to view one of the most productive and profitable Ozark grazing dairies.
• El Dorado Dairy, Clovis, N.M., was named the Southwest area Member of Distinction. When designing his dairy, Steve Hanson paid careful attention to the effect the barn and parlor would have For more information please visit www.wagcheese.com
Comings and goings … comings and goings
RELCO LLC, Willmar, Minn., has named Luis Marin general manager of its manufacturing, engineering and construction functions. Marin has more than 15 years experi-ence in international operations, product design and project man-agement. RELCO provides dairy and food plants with customized milk, cheese, whey and other food processing equipment and systems through design, engineering, fabri-cation, automation and installation.
Intelligrated Inc., Cincinnati, has appointed John Schmidt sales engineer for the company’s New Jersey-based eastern region opera-tions. In his new position, Schmidt is responsible for developing the company’s distribution and fulfill-ment business in New Jersey and
New York City. Prior to joining In-telligrated, Schmidt spent 15 years working as a representative for JHS Sales and as a regional sales manager for both Douglas Machine and Langen Packaging Group.
D.D. Williamson (DDW), Louisville, Ky., has announced that Daniel Castillo has joined the company as sales director. Castillo will lead DDW’s sales team to de-velop customer consultation initiatives in North America, the Caribbean, Cen-tral and South America. A key role for Castillo will be develop sales strategies and techniques to meet customer needs by collaborating with DDW’s science & innovation team. Castillo brings more than a decade of experience in market-ing, product management, business development and sales management with a leading, global flavor house. CMN
PEOPLE EVENTS
MADISON, Wis. — The Wiscon-sin Cheese Makers Association (WCMA) will hold a golf outing July 18.
Golfers will be able to choose between one of three courses in cen-tral Wisconsin: The Pines at Lake Arrowhead Resort in Nekoosa, The Lakes at Lake Arrowhead Resort in Nekoosa or the Castle Course at Northern Bay Course in Arkdale.
The outing will be held in a scramble tournament format and
Wisconsin Cheese Makers Association to hold annual golf outing July 18 in Nekoosa
includes complimentary range balls, cart rental, gifts, lunch, social hour, dinner and the chance to win prizes on each hol
Online registration for partici-pants and sponsors will begin at 10 a.m. May 8 at www.wischeesemak-ers.org. Space is available on a first-paid, first-served basis, determined by date that payment is received.
For more information, call 608-828-4550 or e-mail golf@wischeesemakers .org . CMN
MEMBERSContinued from page 14
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16 CHEESE MARKET NEWS® — April 27, 2012
NEWS/BUSINESS
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and soups, but also for permeate’s ability to be a sodium replacer. One natural characteristic of permeate is that when it is used in formulations, sodium levels can be decreased without affecting the taste.• Permeate the market
Sodium and cost reductions are two of the possible uses for the trademarked ingredient VersiLac, a blend of milk and whey permeate from Proliant Dairy Ingredients, Ankeny, Iowa.
“With so much of the food industry focusing on sodium reduction, we were pleased to discover that our new ingre-dient, VersiLac, can be used to boost
Turn to YOGURT, page 17 D
INGREDIENTSContinued from page 1
salty notes in a wide variety of finished applications,” says Kim Peterson, ap-plications research specialist, Proliant Dairy. “We have had success replacing a portion of the salt in savory applications such as soups and sauces, in seasonings for chips, dips and dressings, and in bakery applications like biscuits, cook-ies, pie crusts and pizza crusts.”
Proliant Dairy initially focused on demonstrating how VersiLac could re-place more expensive dairy ingredients like whey or nonfat dry milk. From this work, the company found that when VersiLac is used in food systems, it helped bring out the core flavors of these foods. This prompted the development of applications where VersiLac could be used to reduce more costly ingredients like cocoa powder, chocolate, cheese
powders, butter or sugar.“Combining the savings of replacing
more expensive dairy ingredients, such as nonfat dry milk, with the reduction of another expensive ingredient, like cocoa powder, results in a significant cost-savings for food manufacturers,” Peterson says. “Additional benefits of using VersiLac are the nutritional advantages of reducing salt, sugar or butter. VersiLac is a versatile ingredient that can be used in a wide variety of food systems to help achieve cost savings or nutritional improvements.”
Permeate for many years was used primarily as a feed ingredient, but processing and drying technology has evolved over the last 5-10 years that has allowed more high-quality, food-grade permeate, says Chris Snyder, president
and CEO, Proliant Dairy. “As we look forward, there will be
more value-added products to come from permeate streams,” Snyder says. “There’s always the opportunity to do more and better, creating more value. But it will take investment.”
The Lauridsen Group Inc. (LGI), the parent company of Proliant Dairy, is about to complete its latest invest-ment in a new technology center in Ankeny that will have a research and test kitchen, research and development labs and a pilot plant for research and development for all of LGI’s companies. The state-of-the-art center is expected to open in the next few months.
“We’re clearly optimistic that there’s a future for products from permeate,” Snyder says. “We think there’s a pretty rich source of new products and inno-vation to come from this underutilized by-product stream.”• Greek accent
McDonald says another key dairy ingredient that is becoming popular is yogurt. During the Institute of Food Technologists (IFT) Expo in June, USDEC will feature the use of yogurt as an ingredient and in novel products among its prototypes, including a savory Greek yogurt that mixes Greek yogurt with vegetables and spices, picking up on the explosion of Greek yogurt’s popularity.
“Some yogurt-based products are on the market now, such as salad dressings, dips and sauces,” McDonald says, add-ing that this provides many nutritional benefits. “Especially if you use Greek yogurt, it’s high in protein.”
Greek yogurt is the featured ingre-dient in a new shelf-stable product, Rickland Orchards’ new Greek Yogurt Bar, which includes honey-roasted granola and real fruit with a Greek yogurt coating.
Healthy eating on-the-go was the inspiration for this product, according to Rickland Orchards CEO and co-founder Jason Cohen.
“I started to want to get back into shape, and my nutritionist said ‘Eat Greek yogurt,’” Cohen says. “I added fiber with different granola, and for antioxidants I added berries. Then I had to travel for work and it wasn’t as easy to do all these things on the go. I thought to myself, portability is important, and a lot of people do not have time to prepare foods. I didn’t see anything on the grocery shelf using Greek yogurt.”
Cohen began work on developing a shelf-stable product with Greek yogurt. He ran into a challenge when looking for a domestic source.
“I called around to dairy manufac-turers in the United States, and the response I got last summer is that they were so busy, so behind on making tra-ditional Greek yogurt, that they didn’t have the time and attention to create shelf-stable Greek yogurt.”
He ended up having to go to Europe to find a supplier, and eventually he
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YOGURTContinued from page 16
NEWS/BUSINESSApril 27, 2012 — CHEESE MARKET NEWS® 17
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found a company that would work with a dairy farm that made Greek yogurt. The Greek yogurt went through a pro-prietary process, then probiotics were added and a formulation was created that was acceptable to U.S. standards of identity.
“A lot of formality steps were taken so we could make sure when we were giving it to the customer, it was genuine,” Cohen says.
The recent publicity and popularity surrounding Greek yogurt has helped with the launch of Rickland Orchards’ Greek Yogurt Bar. In the first 90 days the product has been on the market, Cohen says it has received authorizations in more than 10,000 locations.
“In my career, I’ve never seen some-thing move so quickly based upon buyers feeling it’s a need or enhancement to the category,” Cohen says. “Other bars are getting protein from nuts. With us, a lot of the protein is coming from the yogurt. It’s how people are eating Greek yogurt today. It’s not that we’re creating another energy bar — we’re creating another way to eat Greek yogurt.” • Envelope of innovation
With the success of the Greek Yogurt Bar, Cohen says Rickland Orchards is working on new shelf-stable products using Greek yogurt, such as the same granola, berries and Greek yogurt in a cereal format, dark chocolate and Greek yogurt candy bars, and shelf-stable smoothies. Some of the new products will be launched at the Washington D.C. Fancy Food Show in June.
“It’s all about pushing the envelope of innovation, looking at different for-mats to deliver Greek yogurt,” he says.
In addition to the Savory Greek
Yogurt, USDEC will feature other dairy ingredient prototypes at the IFT Expo in June. USDEC will sample a dairy protein dip that uses milk protein concentrate blended with hummus and spices, targeting protein-seeking and label-savvy consumers. A rehydra-tion beverage will include naturally-occurring milk minerals from perme-ate, providing potassium, calcium and sodium in a thirst-quenching beverage.
The prototypes also will include a crispy cracker that uses WPC and MPC to boost the protein content as well as permeate to reduce sodium, and a jerky-like “Dairy Protein Chew” made with WPC and whole milk, positioned as a novel snacking occasion for consumers seeking non-meat sources.
McDonald says snacking is a huge area of potential for new dairy ingredi-ent applications.
“This is about a $90 billion industry, the snacking category,” she says. “It continues to grow as people move away from the traditional three big meals a day. There are a lot of meal occasions, smaller meals to keep energy up and keep people moving throughout the day. Snacking is really hot and continues to be a great opportunity.”
She also stresses that nutrition consistently is a great driver for dairy ingredients, since consumers perceive dairy on the food label as more natural, wholesome and containing essential nutrients.
“I would definitely suggest always trying to tie in the nutritional benefit of the ingredient they’re using,” McDonald says of dairy ingredient applications. “Having that benefit and touting it can be extremely effective in marketing. Whether it’s a snacking product, break-fast, or for seniors and healthy aging, it’s good to tie in the benefit.” CMN
GEA Process Engineering to build world’s largest dairy spray dryer in New ZealandAUCKLAND, New Zealand — GEA Pro-cess Engineering says it has agreed to a $92 million contract with Fonterra to work on the world’s largest dairy spray dryer facility, which will be located in a farming district of New Zealand.
Slated for completion in August 2013, the facility is expected to be capable of processing 30 tons of whole milk powder an hour. The companies say about 260,000 cows will have to milked each day to support that volume, and 200 tankers of milk will be delivered to the plant each day.
“GEA Process Engineering has been in the business of developing and sup-plying dairy spray dryers for nearly 80 years now and we see dairy as one of our most important markets. We have, there-fore, a continued focus on innovation and see this milestone order as proof of our leading technological position,” says Niels Erik Olsen, executive vice president and segment board member, GEA Process Engineering.
Fonterra currently processes about 90 percent of New Zealand’s milk sup-ply and accounts for about 40 percent of milk powder traded in international dairy markets.
The new project, Darfield D2, is the second of two plants to be located on a green field site in Darfield, New Zealand. GEA Process Engineering has also been contracted by Fonterra to install a dairy powder dryer on the site, Darfield D1, that will have about half the output capacity of the D2 facility.
GEA is currently working on the first stage of the Darfield D1 project. The company is supplying technology for milk reception, standardization, evaporation, drying, powder transport and packing at site.
“Both parties are working well together on the Darfield D1 project, which is well under way, and natu-rally we are happy that we have also been awarded this second project at the Darfield site. Now that we have signed the deal with Fonterra, our employees and I are thrilled, and we cannot wait to start this new major project,” says David Bower, managing director of GEA Process Engineering New Zealand.
Products from the new plant will be marketed in the Middle East, South East Asia and China, where the demand for milk powder products is rising. CMN
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18 CHEESE MARKET NEWS® — April 27, 2012
NEWS/BUSINESS
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feeding programs.(For more details on the Dairy Se-
curity Act and the programs included, see “Rep. Peterson unveils bill based on revamped NMPF policy plan” in the Sept. 23, 2011, issue of Cheese Market News.)• Industry groups face off
The DMSP has led to division in the dairy industry.
The International Dairy Foods As-sociation (IDFA) says that “although this program is being sold to Congress as a way for the government to control milk price volatility, IDFA believes it will hamstring a growing dairy export business, discourage investment into processing facilities and ultimately hurt new or expanding dairy farms by limiting increased demand for more milk production.”
IDFA says that programs to assist farmers by controlling markets have failed in several commodity sectors, including dairy, over decades in American agriculture history.
Meanwhile, NMPF was part of a letter sent to the Senate late last week from several organizations —
including Land O’Lakes, Agri-Mark, Associated Milk Producers Inc., the California Milk Producers Council, National Farmers Organization, Dairy Farmers of America, Northwest Dairy Association/Darigold, among others — urging inclusion of the DSA in the farm bill.
The letter says that dairy farmers have suffered financially because of extreme margin volatility.
“The two programs that make up our federal dairy safety net — the Dairy Product Price Support Program and MILC — focus directly on milk prices,” the letter says. “What U.S. dairy families need is a policy package focused on the margins between milk prices and feed costs.”
The letter says that the DSA “helps to moderate the severity of the vola-tility in milk prices by maintaining better market balance, which benefits consumers as well as farmers, all while relying on less government spending than our current programs, a key for any legislation in this era of necessary budget constraint.”
But IDFA urges Congress to adopt safety net proposals such as margin insurance or the Livestock Gross Margin-Dairy program that “do not attempt to assist producers by impos-
ing government control of the supply and demand for milk and will not have the negative consequences of supply management programs.”
This week several dairy industry leaders — including Jerry Slominski, senior vice president for legislative and economic affairs, IDFA; Miriam Erickson Brown, president and CEO of Anderson Erickson Dairy; Jon Davis, president and CEO of Davisco Foods International Inc.; and David Ahlem, vice president of dairy procurement and policy for Hilmar Cheese Co. Inc. — called for senators to remove DMSP from the farm bill.
“This proposed plan will create a chain of events which will limit the milk supplies for dairies like Ander-son Erickson and result in higher milk prices for consumers,” Erickson Brown says. “Last year, milk prices increased nationally on average by 11 percent, driving consumers to purchase fewer gallons of milk. A gallon of milk is the foundation for most dairies like ours.”
Davis says that limiting the pro-duction of milk will limit the United States’ ability to increase its sales opportunities around the world.
Ahlem notes the millions of dollars Hilmar Cheese Co. has invested to
take advantage of the growing inter-national demand for dairy.
“The very existence of a govern-ment supply control program for dairy, including this new stabilization plan, would be a signal to our competitors and trading partners that the United States is not a serious and reliable long-term supplier,” he says. “It would have a serious impact on our company’s ability to continue to grow.”
Other groups including the Dairy Business Milk Marketing Coopera-tive (DBMMC), the Wisconsin Dairy Business Association (DBA) and the Minnesota Milk Producers Associa-tion (MMPA) also voiced opposition to inclusion of the DSA in the farm bill this week.
“Dairy processors purposely locate in areas where there is a consistent supply of milk. Any governmental interference in maintaining that consistent supply of milk will harm the Wisconsin dairy industry, directly contradicting programs Wisconsin has recently implemented to increase milk production,” DBA says.
An amendment to the farm bill that would drop the proposed supply management program and replace it with a stand-alone margin insurance
FARM BILLContinued from page 1
Turn to POLICY, page 20 D
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NEWS/BUSINESSApril 27, 2012 — CHEESE MARKET NEWS® 19
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WASHINGTON — Two recent studies give opposing views on the impact of proposed dairy reforms included in the farm bill on the U.S. dairy industry.
A new analysis prepared by Dr. Scott Brown of the University of Missouri, which was commissioned by the House Agriculture Committee, analyzes the Dairy Security Act (DSA) legislation introduced last year by Rep. Collin Peterson, D-Minn., and part of which is included in a farm bill draft being marked up by the Senate Ag Commit-tee this week. (For more on the DSA and the farm bill, see related story in this issue.)
The National Milk Producers Federa-tion (NMPF), which supports inclusion of the DSA in the farm bill, says that the key take-away of Brown’s analysis is that the dairy reforms included in the DSA reduce margin volatility at the farm level without negatively affecting the supply of milk to either domestic or international markets.
“This new assessment should calm any concerns on Capitol Hill that the U.S. dairy industry will be in any way diminished or hobbled by the changes we want to make,” says Jerry Kozak, president and CEO, NMPF. “In fact, by reducing the chances that farmers will lose their equity, these policy reforms will strengthen our industry and make it more competitive in the long term.”
Brown’s study shows that, on average and over the period of 2012-2022, there are only small effects on milk availability if the provisions of the DSA are in place.
Even with 70 percent of the milk supply participating in the program, the analysis shows that supplies average just one-tenth of one percent less than without the program.
NMPF says the analysis shows the impact of the Dairy Market Stabiliza-tion Program, included in the DSA, on exports is minimal as well. For example, exports of nonfat dry milk would aver-age just 4 million pounds lower, or 0.3 percent.
“This report corroborates the research that our own economists have conducted on this program, and demonstrates that margin volatility for farmers is reduced without milk prices being unduly raised,” Kozak says. “Importantly, neither the margin protection nor the market stabilization programs will operate often or for long periods of time. They are triggered in when needed, and they trigger back out when they are not.”
Meanwhile, an analysis recently released by the American Enterprise In-stitute (AEI) says supply management initiatives currently being discussed as part of the farm bill would be “detrimen-tal to U.S. interests,” according to the International Dairy Foods Association (IDFA). IDFA opposes the inclusion of the DSA in farm bill policy.
The paper, “Market Structure and Competition in the U.S. Food Industries: Implications for the 2012 Farm Bill,”
Studies eye effects of milk supply control
says that the DSA would increase con-sumer prices, increase milk production costs and diminish the competitiveness of U.S. dairy products in the world market.
The paper examines the potential impact of several current initiatives de-signed to expand regulation of the food industries with the goal of increasing competition and the commodity prices farmers receive.
According to AEI, many of these ini-tiatives will likely have the unintended consequences of raising consumer prices and lowering farmers’ prices while reducing the quality and variety of food products available to consumers.
“The American Enterprise Institute is another in a growing list of think tanks that are opposed to the Peterson bill,” says Jerry Slominski, senior vice presi-dent for legislative affairs and economic policy, IDFA. “They obviously share our concern about policies that will limit our ability to create jobs and to allow pro-ducers to grow their businesses.” CMN
“This new assessment should calm any
concerns on Capitol Hill that the U.S. dairy
industry will be in any way diminished or
hobbled by the changes we want to make.”
Jerry KozakNATIONAL MILK
PRODUCERS FEDERATION
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20 CHEESE MARKET NEWS® — April 27, 2012
NEWS/BUSINESS
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POLICYContinued from page 18
program for dairy producers was intro-duced this week by Sen. Mike Bennet, D-Colo. However, the amendment was not included in the farm bill passed by the ag committee on Thursday.• Hearing on dairy programs
Meanwhile, the six House Agricul-ture Committee subcommittees this week kicked off a series of hearings on the farm bill, with one held Thursday focusing on dairy programs.
Several dairy industry stakehold-ers testified at Thursday’s hearing, including Davisco Foods’ Davis, on behalf of IDFA; Jerry Kozak, president and CEO, NMPF; Dr. Scott Brown, assistant research professor in the College of Agriculture at the Uni-versity of Missouri; Tom Barcellos, board president of Western United Dairymen (WUD); and Patrick Joseph Wright of V&W Farms Inc. on behalf of Southeast Milk Inc.
Barcellos says that from a produc-er perspective, several improvements were made to the DSA during its devel-opment, including the scaling-back of government involvement in market stabilization, making the program more responsive to the export market and allowing market stabilization to transfer from mandatory to voluntary.
“I am happy to express my support for those changes and would like to offer up another,” he says. Barcellos then suggested it would be helpful for dairy farmers everywhere to have the option of choosing a market-based margin plan that values feed where it is used rather than a production-based plan that prices it where it is grown.
In his testimony, Davis says that dairy processors, like Davisco Foods,
have invested hundreds of millions of dollars in the last few years to take advantage of new export markets for U.S. milk products.
“We should adopt policies that position us to continue to compete in markets and to develop new products for an increasingly competitive mar-ketplace here at home and abroad,” he says. “This path requires less gov-ernment regulation and new policies that will not provide an advantage to our competitors or encourage imports.”
Kozak in his testimony notes that “there has never been the level of consensus within the U.S. dairy pro-ducer community as currently exists in support of the Dairy Security Act.”
He says that the DSA begins tran-sitioning dairy farmers to being better able to manage their business risk in a deliberate, planned approach that provides a better safety net while re-ducing government involvement and positioning the U.S. dairy industry to better compete in the growing global dairy marketplace.
The program also complements private sector risk management tools, such as the use of futures markets and forward contracting, he adds.
Kozak notes that criticism of the DSA from commercial milk buyers alleges that it will restrict milk pro-duction, raise consumer prices and negatively impact exports.
“We believe these allegations are clearly ill-founded and based either on insufficiently robust or incomplete economic analysis at best or pure conjecture at worst. Additional analy-sis can be expected to reinforce the fact that these concerns are clearly without merit,” he says. “Our dairy producers deserve and need the right thing, and the Dairy Security Act is our best chance to get it right.” CMN
More competition expected for food marketersTEMPE, Ariz. — Food retailers and manufacturers will be faced with nu-merous challenges and opportunities this year and beyond, according to Brian Todd, president of the Food Institute, who spoke last week at the National Frozen & Refrigerated Foods Executive Conference in Tempe, Ariz.
Dollar stores are expected to grow rapidly over the next five to eight years, increasing their food aisles and freezer cases, he says, noting that some sources project there will be 33,000 dollar stores operating in the United States by 2020.
“Faced with more and more places for consumers to purchase food, traditional supermarkets have to compete more ag-gressively for budget-conscious consumers.
At the same time, however, food marketers can now approach more diverse types of re-tailers to sell their products to,” Todd says.
He also notes that consumers should get a bit of a break on retail food prices this year compared to last, as prices are projected to rise 2.5 percent to 3.5 percent in 2012, well below the 4.8 percent rate increase experienced in 2011. However, he says several of the categories that drove prices sharply higher in 2011, such as beef, will con-tinue to rise above the average in 2012.
He adds that U.S. population growth is slowing from prior years, meaning retail-ers will have to work harder to increase sales that had been positively impacted by an ever-growing population. CMN
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April 27, 2012 — CHEESE MARKET NEWS® 21
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Reprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
22 CHEESE MARKET NEWS® — April 27, 2012
NEWS/BUSINESS
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Office of the U.S. Trade Representative releases three reports on foreign barriers to tradeWASHINGTON — U.S. Trade Represen-tative (USTR) Ron Kirk recently sent to Congress and President Obama three reports detailing foreign government barriers to American exports and achieve-ments in removing some key trade barriers. These include the third annual reports on Sanitary and Phytosanitary (SPS) Barri-ers to Trade and Technical Barriers to Trade (TBT), as well as the 2012 National Trade Estimate (NTE) Report on Foreign Trade Barriers, which is in its 27th year of publication.
The SPS report focuses on unwar-ranted SPS barriers that block American agricultural exports, and this year’s report outlines the increasing opportunities for American agricultural products abroad.
Topics in this report covering SPS barriers to dairy products include:
• Continuing work on a new export certificate for U.S. dairy exports to China;
• Egypt’s testing of imported dairy and other products for dioxin;
• The European Union’s limits on the number of white blood cells in raw milk, as measured by the somatic cell count (SCC) level;
• India’s SPS requirements on dairy imports, including certification that U.S.-origin milk has been treated to ensure the destruction of paratuberculosis, which have essentially precluded U.S. access to India’s dairy market;
• A law that requires a pre-registration and audit for companies to export animal-
derived products to Indonesia; and • Russia’s effective ban on the importa-
tion of U.S. dairy products and the United States’ attempt to re-engage in negotia-tions with Russia to develop a new dairy certificate that would reopen the Russian market to U.S. dairy producers.
The TBT report addresses unwarranted or overly-burdensome technical barriers. It was created to respond to the concerns of U.S. companies, farmers, ranchers and manufacturers who increasingly encoun-ter non-tariff trade barriers in the form of product standards, testing requirements and other technical requirements as they seek to sell products and services abroad. It also highlights successes, such as the re-cent agreement the United States reached with the EU to allow organic products certified in the United States or in the EU to be sold as organic in either market.
Kirk says since the last TBT report was released, the United States has sig-nificantly advanced its efforts to resolve concerns with unjustifiable barriers to trade and prevent their emergence, including: the passage of free trade agree-ments (FTAs) with Korea, Colombia and Panama; the creation of new coopera-tion initiatives related to the regulatory and standards issues in the World Trade Organization (WTO), the Asia-Pacific Economic Cooperation (APEC), U.S. FTAs and other bilateral forums; and progress on the negotiation of a modernized TBT chapter in the Trans-Pacific Partnership (TPP) that will build on and strengthen current TBT disciplines.
The 2012 NTE Report on Foreign Trade Barriers is an annual report that identi-fies foreign barriers to American exports of goods and services, foreign direct investment and protection of intellectual property rights. This report also outlines the actions taken to address the export
barriers described in the report. Some of the cheese- and dairy-related trade issues highlighted in the report include:
• Canada’s supply management sys-tems and tariff-rate quotas (TRQs) for dairy, which severely limits the ability of U.S producers to increase exports to Canada above the TRQ levels and inflates the prices Canadians pay for dairy prod-ucts. Canada’s compositional standards for cheese further restrict U.S. access to the Canadian dairy market, the report says.
• Japan’s high tariffs on a number of important U.S. exports, including 40 percent on processed cheese, 29.8 percent on natural cheese and 22.4 percent on shredded Mozzarella. The report says tariff reductions on these and other products continue to be a high priority for the U.S. government.
• High tariffs imposed on U.S. exports of certain cheeses and dairy products to other countries, including Indonesia, Thailand and Vietnam.
The NTE report also highlights agree-ments and resolutions that have helped lift trade barriers, including:
• The U.S.-Colombia Trade Promotion Agreement, which will provide duty free tariff rate quotas on dairy products when the agreement enters into force May 15;
• The U.S.-Korea FTA, which entered into force March 15, and has or will virtually eliminate tariffs on most U.S. agricultural exports, including dairy products; and
• The resolution last year of the cross-border trucking dispute between the United States and Mexico, which lifted Mexico’s retaliatory tariffs that had affected some cheeses among other U.S. exports.
To read the full reports, visit www.ustr.gov/about-us/press-office/ reports-and-publications/2012. CMN
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Reprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
NEWS/BUSINESSApril 27, 2012 — CHEESE MARKET NEWS® 23
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BSEContinued from page 1
BURLEYContinued from page 1
square feet of production space — began last month and is slated to be complete in October, says Randy Robinson, CEO, High Desert Milk.
Robinson says the plant will begin manufacturing bulk butter with the abil-ity to make different blends for export.
He notes that the company’s powder plant has a lot of cream, so using that to make butter was a logical step for High Desert Milk.
“We had always planned to include butter production when the plant was first built,” he says.
High Desert Milk first will put in one 6-ton-per-hour butter churn and plans to add two additional churns in the future, Robinson says. The plant will have the ability to process 200,000 pounds of cream per day.
High Desert Milk was formed in 2001 by six dairymen who had a desire to in-crease their return per hundredweight of milk and provide a stable market for their milk, Robinson notes.
Currently, these same owners milk 26,000 cows, farm 30,000 acres and market 1.8 million pounds of milk per day, he adds. CMN
When announcing the test results Tuesday, USDA confirmed there was no threat to the public health, no danger to the nation’s food supply and that BSE cannot be spread through milk.
“The beef and dairy in the American food supply is safe and USDA remains confident in the health of U.S. cattle,” says USDA Secretary Tom Vilsack. “The systems and safeguards in place to pro-tect animal and human health worked as planned to identify this case quickly, and will ensure that it presents no risk to the food supply or to human health. USDA has no reason to believe that any other U.S. animals are currently
affected, but we will remain vigilant and committed to the safeguards in place.”
USDA Chief Veterinary Officer John Clifford says atypical BSE, which was found in the dairy cow carcass in Cali-fornia, is a very rare form of the disease not generally associated with an animal consuming infected feed.
There are two strains of BSE:. The typical strain, which was linked to out-breaks in the United Kingdom and Can-ada, is known to be preventable through the elimination of BSE-contaminated food. FDA regulations have prohibited the inclusion of mammalian protein in feed for cattle and other ruminants since 1997 and have prohibited high-risk tissue materials in all animal feed since 2009. The typical strain of BSE has never been identified in U.S.-born cattle.
The atypical strain of BSE appears to represent a sporadic disease that is different from what usually is seen, CDFA says.
Jerry Kozak, president and CEO of the National Milk Producers Federation (NMPF), this week responded to USDA’s announcement, saying America’s dairy farmers are encouraged that the ongo-ing surveillance and inspections by federal authorities continue to ensure that BSE does not enter the U.S. food supply.
NMPF also stresses that milk and dairy products do not contain or trans-mit BSE, and animals do not transmit the disease through cattle-to-human con-tact. The infectious prions that transmit BSE are found in neurological tissues, such as brains and spinal cords. CMN
Fonterra plans new facility in Indonesia AUCKLAND, New Zealand — Fon-terra recently announced plans to invest in a blending and packing plant in Indonesia to help support the growing demand for high-quality dairy nutrition in the region. The investment will support the local expansion of Fonterra’s consumer brands Aniene, Anmum and Anchor Boneeto through-out Indonesia.
Fonterra CEO Theo Spierings says Asia is leading the world in dairy de-mand growth, and Indonesia is a big part of this demand.
“The New Zealand dairy industry has over a 40 year relationship sup-plying high-quality dairy products to Indonesia, and dairy demand in Indonesia is forecast to grow by around 50 percent over the next eight years,” Spierings says. “With such rapid growth forecast in Indonesia, we want to increase our packing and blending capabilities on the ground to support the long-term growth of our business.”
Fonterra currently packs and blends its consumer brands Aniene, Anmum and Anchor Boneeto either in New Zealand or through co-packers in Indonesia or in other parts of Asia before distributing to the Indonesian market.
Fonterra officials currently are talking with prospective partners and looking at possible structural options and locations. The company expects that the new plant will be operational within 18 months. CMN
Reprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the April 27, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
24 CHEESE MARKET NEWS® — April 27, 2012
NEWS/BUSINESS
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Applications due May 15 for 2013 Wisconsin Master CheesemakersMADISON, Wis. — The Wisconsin Center for Dairy Research (CDR) is accepting applications for its Master Cheesemaker program through May 15.
Candidates currently must be mak-ing cheese in a Wisconsin plant, held a Wisconsin cheesemaker’s license for a minimum of 10 years and participated in the CDR Cheese Technology Short Course and an additional elective course. Applicants also must participate in the program’s quality assurance com-ponent of plant and product inspection.
Applications are available at www.cdr.wisc.edu/programs/master. For more information, contact Joanne Gauthier at [email protected]. CMN
Proposed New York dairy marketing order rejected in final state budget ALBANY, N.Y. — A dairy research and education marketing order that had been proposed by New York Gov. Andrew Cuomo and supported by the New York Farm Bureau was cut from the final state budget that was adopted in March.
The proposed marketing order would have included a 1 cent per hundredweight assessment on New York dairy farmers’ milk, and a producer advisory board of farmer-representatives would have determined how to direct these funds toward dairy research and education.
New York Sen. Patty Ritchie, R-Huevelton, who is chair of the New York Senate’s Agriculture Committee, says the proposed marketing order fee was overwhelmingly unsupported in a survey she conducted of more than 100 farmers in New York’s Oswego, Jefferson and St. Lawrence counties. CMN
U.S. dairy export volumes improve slightly in February, boosted by strong cheese salesWASHINGTON — U.S. dairy export volumes in February improved slightly, compared with recent months, boosted by continued strong sales of milk powder and cheese, according the most recent trade data released by USDA’s Foreign Agricultural Service and reported by the U.S. Dairy Export Council (USDEC). The total export value in February reached a record high $434.7 million, up 27 percent from February 2011. In the December-February period, U.S. exports of dry dairy ingredients (milk powder, whey, lactose), cheese and butterfat totaled 863.2 million pounds, up 1 percent from the same period last year. (The figures released by USDA and USDEC are in metric tons; Cheese Market News has converted the data to
pounds by multiplying by 2,204.6.)U.S. cheese exports in February totaled
45.4 million pounds, up 4 percent, and January-February cheese exports totaled 88.2 million pounds, up 3 percent from the same period in 2011. In the December-February period, shipments of cheese to Mexico were steady (up 1 percent), while Japan (up 24 percent) and Saudi Arabia (up 41 percent) posted strong gains compared to a year earlier, USDEC says. However, cheese shipments to South Korea dropped 32 percent in this period.
In February, U.S. exports of milk pow-der totaled 90.8 million pounds, up 12 percent from a year ago. January-February milk powder exports totaled 179.5 mil-lion pounds, up 4 percent from the same
months in 2011. February exports of nonfat dry milk/skim milk powder (NDM/SMP) totaled 87.7 million pounds in February, up 11 percent from a year earlier, and their highest volume since October 2010. Exports of whole milk powder (WMP) totaled 3.1 million pounds in February, up 34 percent from a year ago.
U.S. exports of whey proteins in Feb-ruary totaled 68.3 million pounds, down 5 percent from February 2011, while January-February whey protein exports totaled 148.8 million pounds, down 2 percent. USDEC says whey exports in February were at their lowest since July 2010. In February, U.S. exports of dry sweet whey dropped 12 percent, whey protein concentrate (WPC) exports increased 5
percent and whey protein isolate exports dropped 11 percent vs. a year ago.
Lactose exports in February totaled 53.8 million pounds, down 4 percent from a year earlier, and January-February lactose exports totaled 110.2 million pounds, up 2 percent from the same months in 2011. In the December-February period, lactose exports to China were up 31 percent vs. the prior year, while sales to New Zealand increased 26 percent, USDEC says.
Butterfat exports in February remained light at 8.1 million pounds, down 42 percent from a year earlier.
U.S. dairy exports to Mexico were val-ued at $106 million in February, up 43 per-cent from February 2011. Dairy exports to Southeast Asia totaled $77 million pounds in February, up 8 percent, and February ex-ports to Canada totaled $50 million pounds, up 49 percent from February 2011. CMN
