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Panelists Discuss Challenges, Outlook for Dairy

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Panelists Discuss Challenges, Outlook for Dairy Scan this code for breaking Panelists discuss challenges, news and the latest markets! outlook for dairy marketplace A By Alyssa Sowerwine texture and flavor, challenges ing” in last week’s issue of Stachura says, noting this will with yeasts and molds, and the Cheese Market News.) drive increased polarization INSIDE MILWAUKEE — In a constant- emerging issue of capturing The second part of the ses- between value and premium ly evolving marketplace, it can whey’s value in the cheesemak- sion focused on opportunities (product, channels, prices, Guest column: be challenging to pinpoint what ing process. A panel of experts for cheese and dairy going etc.) as the middle class de- ‘A global response the next consumer trend will be including Mark Johnson, senior forward, including the impact clines. to a global threat.’ or what sort of regulations lie scientist and assistant director of new federal regulations in • Inflation Nation — In- For details, see page 4. ahead. At a session Wednesday with the Wisconsin Center for the school lunch program on creasing global demand and during this week’s 2012 Inter- Dairy Research (CDR); Dean cheese. inflation pressures, as well as Retail WATCH Exclusive: national Cheese Technology Sommer, cheese and food Lynn Stachura, senior vice natural resource stress and Edelweiss Creamery’s Conference, titled “Cheese … technologist, CDR; and Karen president of strategy, insights dairy production factors, all new store in Verona will Today’s Challenges and Tomor- Smith, dairy processing tech- and planning for Dairy Manage- potentially can contribute to feature Wis. cheese. row’s Opportunities,” a panel nologist, CDR, highlighted key ment Inc. (DMI), presented a rising future costs, she says. For details, see page 5. of industry experts outlined findings in these areas. set of preliminary emerging Potentially rising food costs will cheesemaking challenges as With regard to capturing “hypotheses” for future con- force the industry to add real CWT will assist with well as what may be in store whey’s value in the cheesemak- sumer trends that will impact “value” for consumers. whole milk exports. regarding future consumer and ing process, Smith notes that the cheese and dairy industry. • A New America —This For details, see page 10. regulatory trends. especially in Wisconsin “half The Innovation Center for macro trend speaks to the in- The session began with the value of what you pay for U.S. Dairy, founded by dairy creasing diversification of the WDPA seeks contest judges. an overview of current chal- in the milk goes into the whey. farmers through the dairy country’s population and the lenges in cheesemaking, such “If your neighbor is captur- For details, see page 12. checkoff program and managed resulting drastic changes in the as factors that affect body, ing that whey value and you’re by DMI, is working to iden- composition of the American not, they will be better able to tify opportunities to drive the family, consumption behaviors reinvest those profits in their growth of dairy and dairy-based and food preferences, Stachura operation,” she says. “Cheese products over the next five to says. Aging boomers, the grow- Auction for World Champion can be the ‘breakeven’ for eight years. The research is ing Hispanic population and your business; whey can be still under way, but six driving the decline of the nuclear fam- cheeses brings in $140,390 the profit.” macro trends have emerged, ily will all influence consumer However, it is challenging Stachura says. preferences and habits in the MILWAUKEE — Bidders raised more than $140,000 Wednesday night for many cheesemakers to The six macro trends in- coming years. during the World Championship Cheese Contest auction, held during sufficiently capture whey’s clude: • Digital Empowerment this week’s International Cheese Technology Expo (ICTE) in Milwaukee. value, as processing equipment • Loss of the Middles — —Virtually everyone will have The auction is part of the biennial ICTE, hosted by the Wisconsin and even transporting liquid Income divergence, changes access to mobile and smart Cheese Makers Association (WCMA) and the Wisconsin Center for whey to another processing in manufacturing and retail- technology in the near future, Dairy Research (CDR), and funds raised go toward support of future facility come with a high cost. ing, and the heated political and highly personalized tools cheese contests, WCMA scholarships and a Member Education Initia- (For more on this issue, see landscape all evidence that will have a major effect on tive instituted by WCMA. “Industry struggles with how middle-income Americans are consumer decision-making, Each item for bid at the auction placed first in its class at the World to incorporate whey into pric- becoming fewer in number, Turn to PANELISTS, page 11 Championship Cheese Contest, held last month at the Monona Terrace in Madison, Wis. Some of the award winners were combined into one category for bid. Hoogwegt U.S. Inc., Lake Forest, Ill., placed the winning bid of $350 per pound, or a total of $8,400, on 24 pounds of Vermeer, the Cypress Grove, BelGioioso USDA raises U.S. 2012 World Championship Cheese Contest Grand Champion made by milk production FrieslandCampina, Wolvega, Friesland, Netherlands. make plans for expansions forecast for 2012 R. Mueller Service and Equipment Co. Inc., Monroe, Wis., placed By Rena Archwamety the largest bid of the night — $500 per pound on a combined lot of WASHINGTON — The U.S. 32 pounds of cheese, or a total of $16,000. R. Mueller placed several ARCATA, Calif. — Cypress Grove Chevre, Arcata, Calif., this milk production forecast for other winning bids throughout the evening. week received approval by the Arcata Planning Commission for 2012 is raised on increased Susan Quarne, publisher of Cheese Market News, placed a winning a proposed expansion of its creamery. milk cow numbers and gains bid of $40 per pound on a combined lot of 26 pounds of cheese for a The expansion will include an approximately 24,387-square- in milk per cow in USDA’s total of $1,040. foot addition to the existing 13,800-square-foot Cypress Grove latest forecast in its “World All winning bids for top cheeses from the contest included: Chevre creamery building. The addition will provide additional Agricultural Supply and • Item 1: AMPI’s Aim — Custom Fabricating and Repair, Marsh- floor space for processing goat cheese, as well as new office space, Demand Estimates” report field, Wis., purchased 40 pounds of Mild White Cheddar made by Mark a cooler, a tank building, a utility building and a truck receiving released this week. Frederixon, Associated Milk Producers Inc.-Blair Division, Blair, Wis., canopy structure. Cypress Grove also received approval to build USDA now projects 2012 for $180 per pound, or a total of $7,200. on additional space if future growth is needed. milk production will total • Item 2: Kraft Quality — Chr. Hansen, Milwaukee, purchased a “We’re enjoying significant annual growth,” says Bob McCall, 201.1 billion pounds, up from combined 18 pounds of Whole Milk Mozzarella (4 pounds) made by sales and marketing director, Cypress Grove Chevre. “This will 199.7 billion pounds in its Turn to AUCTION, page 7 Turn to EXPANSIONS, page 11 Turn to USDA, page 10 Reprinted with permission from the April 13, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 2 CHEESE MARKET NEWS® — April 13, 2012 MARKET INDICATORS Chicago Mercantile Exchange CHEESE FUTURES for the week ended April 12, 2012 Cash prices for the week ended April 13, 2012 (Listings for each day by month, settling price and open interest) Monday Tuesday Wednesday Thursday Friday Fri., April 6 Mon., April 9 Tues., April 10 Wed., April 11 Thurs., April 12 April 9 April 10 April 11 April 12 April 13 APR12 1.559 1,333 1.559 1,333 1.559 1,333 1.552 1,333 1.542 1,335 Cheese Barrels MAY12 1.550 1,548 1.550 1,554 1.553 1,553 1.521 1,563 1.494 1,572 Price $1.4600 $1.4600 $1.4600 $1.4075 $1.4600 JUN12 1.580 1,229 1.575 1,234 1.575 1,237 1.542 1,243 1.528 1,245 JUL12 1.644 870 1.662 881 1.652 898 1.627 912 1.624 919 Change NC NC NC -5 1/4 +5 1/4 AUG12 1.730 796 1.716 799 1.712 800 1.700 808 1.695 821 SEP12 1.740 720 1.725 729 1.730 744 1.710 751 1.706 766 Cheese 40-lb. block OCT12 1.742 600 1.730 604 1.730 611 1.720 616 1.710 635 Price $1.4875 $1.4875 $1.4875 $1.4875 $1.4875 NOV12 1.720 599 1.723 604 1.717 604 1.715 612 1.705 632 Change NC NC NC NC NC DEC12 1.720 637 1.720 637 1.720 637 1.720 637 1.705 660 JAN 13 1.720 42 1.720 42 1.720 42 1.720 42 1.705 42 Weekly average (April 9-13): Barrels: $1.4495(-.0118); 40-lb. Blocks: $1.4875(-.0019). FEB 13 1.750 2 1.750 2 1.750 2 1.750 2 1.750 2 MAR 13 1 1 1.750 1 1 Weekly ave. one year ago (April 11-15, 2011): Barrels: $1.5970; 40-lb. Blocks: $1.6220. 1.750 1 1.750 1.750 1.750 Total Contracts Traded/ Extra Grade NDM Open Interest 0/8,377 67/8,420 59/8,462 146/8,520 1 8 6 / 8 , 6 3 0 Price $1.2575 $1.2575 $1.2575 $1.2075 $1.1825 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.
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