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. Change NC NC NC -5 -2 1/2 Grade A NDM Price $1.2675 $1.2175 $1.1925 $1.2675 $1.2675 for the week ended April 12, 2012 Change NC -5 -2 1/2 DRY WHEY FUTURES NC NC (Listings for each day by month, settling price and open interest) Weekly average (April 9-13): Extra Grade: $1.2325(-.0250); Grade A: $1.2425(-.0250). Fri., April 6 Mon., April 9 Tues., April 10 Wed., April 11 Thurs., April 12 Grade AA Butter APR12 53.95 394 54.50 394 54.50 394 54.00 387 57.98 385 Price $1.4300 $1.4250 $1.4250 $1.4250 $1.4250 MAY12 49.50 393 50.00 392 49.25 391 48.50 388 50.50 394 NC -1/2 NC NC NC JUN12 46.00 361 47.00 361 47.00 361 46.50 366 47.50 368 Change JUL12 45.40 200 45.40 200 44.00 203 43.25 212 44.00 213 209 209 Weekly average (April 9-13): Grade AA: $1.4260(-.0184). AUG12 46.00 46.00 45.00 215 43.50 221 43.50 221 SEP12 43.00 188 43.00 188 43.00 189 44.00 198 43.50 199 Class II Cream (Major Northeast Cities): $1.5015(-.1463)–$1.8590(-.1333). OCT12 43.00 169 43.00 169 43.00 172 43.00 175 43.00 175 NOV12 43.00 148 42.00 150 42.00 150 42.00 150 42.00 150 DEC12 42.00 150 42.00 150 42.00 150 42.00 150 42.00 150 Sign up for our daily fax or e-mail service for just $104 a year. Call us at 608-288-9090. JAN13 41.00 4 41.00 4 41.00 4 41.00 4 41.00 4 Total Contracts Traded/
Open Interest 0/2,216 9/2,217 25/2,229 100/2,251 23/2,259 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.
Weekly Cold Storage Holdings April 9, 2012 On hand Week Change since April 1 Last Year Monday Change Pounds Percent Pounds Change Butter 8,427 +457 +249 +3 8,272 +155 Dry Products* April 13, 2012 Cheese 132,185 -898 -1,116 -1 126,539 +5,646 (These data, which includes government stocks and is reported in thousands of pounds, are based on reports from a NONFAT DRY MILK limited sample of cold storage centers across the country. This chart is designed to help the dairy industry see the trends Central & East: low/medium heat $1.1250(+2 1/2)-$1.3700(-1/2); in cold storage between the release of the National Agricultural Statistics Service’s monthly cold storage reports.) mostly $1.1700(-1)-$1.3200. high heat $1.3100(-4)-$1.4175(-3/4). West: low/medium heat $1.1300(-2)-$1.3450; mostly $1.1700(-1)-$1.3000(-2). high heat $1.2900(-1)-$1.3900. CLASS III PRICE Calif. manufacturing plants: extra grade/grade A weighted ave. $1.2980(-.0200) (Dollars per hundredweight, 3.5% butterfat test) based on 14,814,431 lbs. Sales to CCC: 0 lbs. YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2006 13.39 12.20 11.11 10.93 10.83 11.29 10.92 11.06 12.29 12.32 12.84 13.47 WHOLE MILK POWDER (National): $1.5300(-2)-$1.5500(-3 1/2). 2007 13.56 14.18 15.09 16.09 17.60 20.17 21.38 19.83 20.07 18.70 19.22 20.60 2008 19.32 17.03 18.00 16.76 18.18 20.25 18.24 17.32 16.28 17.06 15.51 15.28 2009 10.78 9.31 10.44 10.78 9.84 9.97 9.97 11.20 12.11 12.82 14.08 14.98 EDIBLE LACTOSE 2010 14.50 14.28 12.78 12.92 13.38 13.62 13.74 15.18 16.26 16.94 15.44 13.83 (FOB)Central and West: $.8600-$1.0050(+5 1/2); mostly $.8900-$.9400(+2). 2011 13.48 17.00 19.40 16.87 16.52 19.11 21.39 21.67 19.07 18.03 19.07 18.77 2012 17.05 16.06 15.72 DRY WHEY Central: nonhygroscopic $.3000-$.6200(-3 1/2); mostly $.5000(-4)-$.6000(-2). STAFF SUBSCRIPTION INFORMATION West: nonhygroscopic $.3000-$.6100(-2); Susan Quarne, mostly $.4800-$.5525(-1). (PH 608/831-6002; FAX 608/831-1004) (FOB) Northeast: extra grade/grade A $.5600(-2)-$.6400(-2). e-mail: [email protected] Kate Sander, ANIMAL FEED (Central): Whey spray milk replacer $.4300(-2)-$.5000(-4). (PH 509/962-4026; FAX 509/962-4027) POSTMASTER: e-mail: [email protected] Send address changes to Cheese Market News®, Subscriber Alyssa Sowerwine, Services, P. O. Box 628254, Middleton, WI 53562; Form WHEY PROTEIN CONCENTRATE (34 percent): $1.2000-$1.6100; (PH 608/288-9090; FAX 608/288-9093) 3579 requested; or call direct at 608/831-6002. mostly $1.3600(-4)-$1.4900(-3). e-mail: [email protected] Rena Archwamety, (PH 608/288-9090; FAX 608/288-9093) DRY BUTTERMILK e-mail: [email protected] (FOB)Central & East: $1.0950(-8 1/2)-$1.2825(-2 1/4). Aaron Martin, (FOB) West: $1.1100(-2)-$1.2300(-2); mostly $1.1500(-3)-$1.2000(-2). (PH 608/288-9090; FAX 608/288-9093) e-mail: [email protected] CASEIN: Rennet $4.3000-$4.7000; Acid $4.6000-$4.9000. REGULAR CONTRIBUTORS John Umhoefer, Downes-O'Neill LLC, International Dairy *Source: USDA’s Dairy Market News Foods Association, National Milk Producers Federation SUBSCRIPTIONS & BUSINESS STAFF Subscription/advertising rates available upon request Contact: Susan Quarne - Publisher Subscriptions: P.O. Box 628254, Middleton, WI 53562 PHONE 608/831-6002 • FAX 608/831-1004
WEBSITE: www.cheesemarketnews.com
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. 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 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 April 13, 2012 — CHEESE MARKET NEWS® 3 MARKET INDICATORS NEWS/BUSINESS Arena Cheese is awarded BRC certification April 13, 2012 International Dairy Markets ARENA, Wis. — Arena Cheese has been tion on safe foods, the BRC certification Western and Eastern Europe awarded certification by the British validates Arena Cheese’s food safety Butter: 82 percent butterfat $3,400(-45)-$3,850(-175); Retail Consortium (BRC) for meeting program, the company says. 99 percent butterfat $4,050(-450)-$4,475(-125). the food safety guidelines of the Global “Many of our current customers have Skim Milk Powder: 1.25 percent butterfat $2,575(-100)-$2,775(-125). Food Safety Initiative (GFSI). requested and required GFSI certifica- Whole Milk Powder: 26 percent butterfat $3,350(-50)-$3,425(-225). The Arena Cheese team, led by Thad tion in the past 18 months,” says Bill Whey Powder: Nonhygroscopic $1,025(-75)-$1,250(-75). Hanson, head of quality assurance, has Hanson, vice president and head cheese- Oceania logged hours of training over the last year maker, Arena Cheese. “We knew that this Butter: 82 percent butterfat $3,500(-200)-$3,900(-100). and has made substantial upgrades to was a natural step up from our existing Cheddar Cheese: 39 percent maximum moisture $3,250(-250)-$4,250(-150). the facility and equipment to make the food safety program that we needed to Skim Milk Powder: 1.25 percent butterfat $3,000-$3,300(-100). BRC certification possible. take to move Arena Cheese to the next Whole Milk Powder: 26 percent butterfat $3,225(-75)-$3,600. With the Food Safety Modernization level of quality assurance for the benefit Act’s focus on prevention of food safety of our customers. Management was and * 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. problems and increased consumer atten- is firmly behind this initiative.” CMN
RETAIL PRICES (Consumer Price Index*) Percent change versus March 2012 1 mo. 6 mo. 1 year 2 years Cheese & related products 225.783 -0.2 -0.6 +8.7 +10.7 CME FUTURES for the week ended April 12, 2012 Dairy & related products 219.131 -0.1 -0.1 +6.3 +10.2 Class III Milk#* All Food 232.792 +0.1 +1.0 +3.3 +6.3 *Source: U.S. Department of Commerce. For index, prices during 1982-84 = 100. Fri., April 6 Mon., April 9 Tues., April 10 Wed., April 11 Thurs., April 12 APR12 15.50 4,804 15.62 4,794 15.64 4,779 15.60 4,756 15.73 4,767 MAY12 15.31 4,418 15.31 4,527 15.36 4,528 14.88 4,558 14.68 4,590 JUN12 15.35 3,708 15.29 3,682 15.30 3,675 14.97 3,722 14.89 3,751 National Dairy Products Sales Report JUL12 16.03 2,791 15.95 2,799 15.94 2,831 15.70 2,867 15.70 2,907 AUG12 16.65 2,638 16.56 2,664 16.56 2,666 16.37 2,707 16.40 2,723 For the week ended: 4/7/12 3/31/12 3/24/12 3 / 1 7 / 1 2 SEP12 16.74 2,310 16.64 2,314 16.65 2,319 16.50 2,363 16.46 2,395 OCT12 16.67 2,150 16.60 2,156 16.60 2,157 16.50 2,169 16.46 2,181 Cheese 40-lb. Blocks: NOV12 16.52 1,981 16.54 1,984 16.55 1,983 16.46 1,995 16.41 2,011 Average price1 $1.5431 $1.5387 $1.5134 $1.4955 DEC12 16.50 1,873 16.51 1,872 16.53 1,873 16.45 1,864 16.40 1,890 Sales volume2 11,250,617 9,488,395 9,554,443 10,257,090 JAN13 16.24 191 16.20 192 16.21 192 16.20 195 16.20 196 Cheese 500-lb. Barrels: FEB13 16.11 143 16.11 143 16.11 143 16.04 144 16.10 146 1 MAR13 16.33 121 16.33 121 16.33 121 16.29 123 16.29 124 Average price $1.6215 *$1.6713 $1.6333 $1.5857 APR13 16.21 41 16.26 41 16.30 44 16.26 51 16.31 51 Adj. price to 38% moisture $1.5415 *$1.5896 $1.5549 $1.5056 MAY13 16.16 28 16.16 28 16.16 28 16.00 29 16.01 29 Sales volume2 9,454,812 *9,952,335 9,924,835 11,921,822 JUN13 16.16 28 16.16 28 16.16 28 16.16 28 16.16 29 Moisture content 34.78 34.81 34.87 34.70 JUL13 16.25 17 16.25 17 16.25 17 16.25 17 16.25 17 Butter: 14 AUG13 16.05 14 16.05 14 16.05 14 16.05 14 16.05 1 SEP13 16.15 4 16.15 4 16.15 4 16.15 4 16.15 4 Average price $1.4753 $1.5001 $1.4519 $1.4425 OCT 13 16.05 4 16.05 4 16.05 4 16.05 4 16.05 4 Sales volume2 2,845,894 6,118,090 6,594,422 4,876,999 Total Contracts Traded/ Nonfat Dry Milk: 1 Open Interest 0/27,270 652/27,390 453/27,412 1,342/27,616 1 , 0 5 6 / 2 7 , 8 3 5 Average price $1.2605 *$1.2747 *$1.3007 *$1.3256 Sales volume2 22,270,600 *23,622,399 *28,521,183 23,438,045 Class IV Milk Dry Whey: Fri., April 6 Mon., April 9 Tues., April 10 Wed., April 11 Thurs., April 12 Average price1 $0.6133 *$0.5946 $0.6113 $0.6066 2 APR12 14.80 338 14.85 338 14.85 338 14.85 338 14.85 338 Sales volume 6,193,970 *8,523,491 8,184,903 8,549,009 MAY12 14.77 277 14.77 277 14.80 282 14.80 282 14.73 282 JUN12 14.95 238 14.95 238 14.98 243 14.98 243 14.98 243 */Revised. 1/Prices weighted by volumes reported. 2/Sales as reported by participating manufacturers. 79 JUL12 15.15 73 15.15 15.15 79 15.11 80 15.10 83 Reported in pounds. More information is available by calling AMS at 202-720-4392. AUG12 15.50 58 15.50 58 15.50 58 15.50 58 15.50 58 SEP12 16.00 61 15.97 61 15.75 61 15.74 61 15.74 61 OCT12 16.05 72 16.05 72 16.05 72 16.05 72 16.05 72 NOV12 16.15 62 16.15 62 16.15 62 16.15 62 16.15 62 DEC12 16.00 59 16.00 59 16.00 59 16.00 59 16.00 59
Total Contracts Traded/ CUSTOM MACHINERY Open Interest 0/1,238 10/1,244 10/1,254 2/1,255 1 0 / 1 , 2 5 8 Cash-Settled NDM DEDICATED TO THE CHEESE & DAIRY Fri., April 6 Mon., April 9 Tues., April 10 Wed., April 11 Thurs., April 12 INDUSTRIES FOR OVER FOUR DECADES! APR12 127.75 258 127.75 258 127.50 258 127.50 260 125.00 259 As a premier designer and fabricator of machinery, Johnson Industries MAY12 125.00 296 125.00 296 125.00 296 125.00 296 123.50 297 has provided a number of custom solutions for various industries JUN12 126.00 378 126.00 378 126.00 380 126.00 380 125.00 388 to meet customer-specific application requirements. JUL12 127.50 341 127.50 344 128.00 344 128.00 346 126.00 353 AUG12 130.00 305 130.00 323 130.00 325 130.00 333 129.00 351 Our commitment to quality and service will exceed SEP12 132.00 200 131.00 215 131.00 218 131.00 321 131.00 225 your expectations; and we are positioned to be your OCT12 134.03 176 134.03 178 134.03 182 134.03 183 134.00 189 long-term partner for all of your cheesemaking needs. NOV 12 135.00 141 135.00 141 135.00 143 135.00 145 135.03 146 Innovation, durability and quality are found in DEC 12 135.00 96 135.00 96 135.00 96 135.00 97 135.00 97 every machine or system we deliver. Total Contracts Traded/ Solutions include: Open Interest 0/2,191 41/2,229 24/2,242 18/2,261 50/2,305 U Robotics U Extrusion Systems UÊ *Ê/À>ÃviÀÊ ÛiÞÀÃÊU Drums Cash-Settled Butter U Brine Metering Systems U Brine Systems Fri., April 6 Mon., April 9 Tues., April 10 Wed., April 11 Thurs., April 12 U Filling & Closing Systems UÊ/ÕiÊ*ÀiÃÃià U Inspection Systems UÊ*ÀViÃÃ}Ê-ÞÃÌià APR12 142.00 731 142.00 746 142.75 746 143.50 747 143.50 747 U Curing Tunnels U Ribbon Blending Systems MAY12 142.75 616 142.75 616 143.00 618 143.50 627 143.50 627 U And So Much More... JUN12 146.00 732 145.00 741 146.25 750 146.50 750 146.25 750 JUL12 147.25 593 147.28 593 147.50 594 148.15 594 149.50 595 U SERVICE U INNOVATION AUG12 149.25 594 149.75 592 150.25 591 151.50 590 151.50 590 Your answer to accurate dry salting. U DEDICATION SEP12 152.50 564 153.00 565 153.00 566 152.75 570 152.75 570 OCT12 155.75 601 155.75 601 155.75 601 155.75 603 156.00 605 NOV12 158.50 534 158.25 536 542 158.50 560 158.25 536 158.25 6391 Lake Road, Windsor, WI 53598 DEC12 157.25 402 157.50 402 157.50 402 157.50 402 157.50 410 Johnson Industries *\ÊÈän®Ên{È{{ÊUÊ8\ÊÈän®Ên{ÈÇ£x JAN 13 159.00 2 159.00 2 159.00 2 159.00 2 159.00 2 © \ÊÊvJ Ã`Ì°V Total Contracts Traded/ International Inc. 7 \ÊÊÜÜÜ° Ã`Ì°V Open Interest 0/5,369 85/5,394 39/5,406 77/5,427 43/5,456 Your Global Cheese Making and Processing Equipment Resource 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. For more information please visit www.johnsonindint.com
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. 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 4 CHEESE MARKET NEWS® — April 13, 2012 EXPORT TOOL KIT CMN Exclusive!
• It is working to include GI provi- Federation and International Dairy Foods Perspective: sions in its FTA with Canada at a time Association, to form the Consortium for when that nation is finally showing signs Common Food Names, an independent Export Expertise that it may be willing to reform its highly international group focused on countering regulated dairy market and broaden U.S. the GI threat. dairy export opportunity. (Canada is the The consortium, which debuted in No. 4 U.S. cheese export market, and the March and held an open reception this Trans-Pacific Partnership FTA offers the week in Milwaukee in conjunction with possibility of significantly expanding cur- the International Cheese Technology rent U.S. export access.) Exposition, seeks to draw attention to • It is processing applications in the and prevent efforts to restrict the use EU to provide GI protection to danbo and of common food names (cheese and havarti, despite the fact that both are otherwise). It supports well-designed GIs Codex standardized names. but opposes any attempts to monopolize This last point is one of the most auda- generic names that have become part of cious. It is shocking that the EU would the public domain. even consider allowing GIs for Codex The EU’s efforts have thrived under standardized cheese names. the radar — behind the closed doors of Then again, in a similarly shocking negotiations and in subsequent work with turn of events, a 2008 EU court ruled foreign governments through more than A global response to a global threat that parmesan is protected under the a dozen free trade agreements currently When the U.S.-South Korea free Evidence abounds that the EU has Parmigiano Reggiano GI despite being moving through the pipeline. trade agreement (FTA) went into affect made the monopolization of generic food markedly different and having a very long The consortium plans to shine a in March, it opened many doors for U.S. names a priority in trade discussions history of manufacturing and use outside spotlight on the problem by informing cheese suppliers. A few however remained around the world: of the Parma region in Italy. consumer groups, farmer associations, shut — not from latent protectionist fears • It is pressing to include GI provisions Where does the effort end? Are brie, food processors and ag and trade officials of the Koreans, as we might have originally in potential talks with the United States camembert, edam, gouda, provolone and of the damage that will be caused in their feared, but the strategic maneuvering of that could bring GI restrictions to the even cheddar and mozzarella next? own countries if the reckless restriction the European Commission, which is in domestic market. The fall out, if the European Com- of common food names is left unchecked. charge of policy and negotiating agree- • It is working with China to develop mission’s efforts are left unchallenged, It also will work with leaders in agri- ments for the European Union (EU). a GI system that aligns with EU views. would be disastrous for the U.S. and culture, trade and intellectual property Because of the EU government’s ag- China already agreed to a “10 for 10” the global cheese industry. All cheese rights to develop and foster the adoption gressive efforts to confiscate common (ge- deal under which the two nations would producers would be required to re-label of a just system of GIs that preserves the neric) food names, including many of the swap and honor 10 of each of their GIs. products, remake marketing campaigns right for companies to use generic food most well-known cheeses, U.S. suppliers (China’s cheese market expanded 20 and reeducate buyers and consumers, a and beverage names as they have been will no longer be able to sell asiago, feta, percent annually over the past decade, prospect that would cost billions. U.S. doing for decades. fontina or gorgonzola in Korea — at least became a top 10 market for U.S. cheese cheese suppliers would see the promise But the effort needs the food industry’s not under those names. The restriction is sales in 2011 and holds huge potential for of emerging markets shrink considerably support, particularly cheese suppliers and solely due to the EU’s demands under its future growth.) and could even face business upheaval those supplying the critical raw ingredient FTA with Korea. • It is working to influence Japan here at home. for cheese — high-quality milk. The European Commission is pursuing through exploratory FTA discussions and The breadth of the problem and the re- Evidence is mounting that inac- a multi-pronged international effort to separately with the country’s Ag Ministry sources allocated by the 27-member bloc tion would only cause GI restrictions confiscate common names. Its strategy to encourage the adoption of an EU-style demands a comprehensive, coordinated to worsen with time. To find out more will have far-ranging negative repercus- GI system. (Japan is the No. 3 U.S. cheese global response. To meet the challenge, about the Coalition for Common Food sions on the international cheese business export market, with sales up 54 percent U.S. Dairy Export Council pulled together Names and what you can do to help, unless it is strongly contested. Geographi- in 2011 vs. the previous year.) an international coalition of concerned visit www.commonfoodnames.com. CMN cal indication (GI) provisions in Europe • It inserted GI provisions into FTAs companies and organizations, including and within the EU-South Korea FTA are with Central America, Colombia and Peru. dairy companies and associations from The views expressed by CMN’s guest a mere example of the intentions and the (U.S. cheese sales to Central America grew Canada, Argentina and Central America, columnists are their own opinions and extent that the EU is prepared to go in the 58 percent from 2010-2011, and Panama as well as U.S. companies and organiza- do not necessarily reflect those of Cheese international arena. is another top 10 cheese market.) tions such as National Milk Producers Market News®. NEWS/BUSINESS Former Milk Specialties Global CEO launches enterprise-based development organization CHICAGO — Trevor Tomkins, who re- port healthy, prosperous communities. the form of loans or equity that can be dairy company, Centrolac, is one of the cently retired as CEO of Milk Specialties “venture | dairy was founded to em- used to procure equipment, purchase partners in the project, which will have Global, this week announced the launch power dairy entrepreneurs to establish feed, build infrastructure and oversee the Tetra Laval Food for Development of a new enterprise-based development sustainable business practices that can operations. Office as an advisor. Currently, venture organization called “venture | dairy,” improve their lives and the lives of their Tomkins says this structure allows | dairy also is undertaking a feasibility In founding the organization, Tom- families, and better their communities,” donors and investors to support the study in Rwanda to determine whether kins looked outside the traditional aid Tomkins says. “This is the driving force organization’s initiatives in ways that its developing dairy industry can be and assistance models and worked to in- behind our organization.” best meet their financial and philan- helped by the construction of a dairy fuse emerging-market dairy enterprises Structured to promote measurable thropic goals. processing plant. with knowledge, technology and capital outcomes, venture | dairy is both a “venture | dairy’s impact component venture | dairy is supported by a for positive social and economic change. not-for-profit organization and a social is in the quantifiable returns it will team of leaders in finance, business, in- Promoting social entrepreneurship investment fund. The not-for-profit provide for investors,” Tomkins says. ternational development and the dairy and international development, Tom- operation prepares dairy enterprises “Our fund is designed to benefit the sciences, all of whom have been involved kins and the venture | dairy organization to succeed by supporting technology entrepreneurs and the investors who in the crafting of the organization. The work with partners around the world advancement and training in dairy will see real and measurable results.” official launch of venture | dairy will be to increase the efficiency and produc- production and coaching those involved The organization’s inaugural project celebrated May 1 at 7 p.m. at the Union tivity of small-scale dairy production through the fundamentals of business is the formation of a “Dairy Hub” in Ni- League Club of Chicago. in emerging markets, aiming to build and value-chain development. The caragua that will work with Nicaraguan For more information about ven- environmentally- and economically- social investment fund provides ac- farmers to improve milk production ture | dairy and its projects, visit sustainable dairy enterprises that sup- cess to affordable, patient capital in and farm profitability. Nicaraguan www.venturedairy.org. CMN 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 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 April 13, 2012 — CHEESE MARKET NEWS® 5 Retail WATC H NEWS & MARKETING IDEAS TO HELP SELL MORE CHEESE Edelweiss Creamery’s new store in Verona will feature Wis. cheese By Kate Sander pairings, cured meats, olive oil and other accouterments to go with the cheese. MONTICELLO, Wis.— Bruce Workman, Seasonal gift boxes also will be offered. president and cheesemaker at Edelweiss The focus will be on the cheese, but there Creamery in Monticello, Wis., and his will be enough selection that customers wife Kathy have been sharing Edelweiss can mix and match 6-packs of beer or Creamery’s cheeses, including Gouda, try other products they like best with Emmentaler, Lacey Swiss, Havarti, a particular cheese. Knives and cutting Muenster and Butterkäse, at the farmer’s boards will be available as will be cheese market in Madison for the last several flights to go. years — and loving every minute of it. As for the cheese, there will be lots In part because of the positive recep- of Wisconsin variety to choose from — tion at the farmer’s market, the couple no foreign imports and nothing from found themselves wanting another venue other states. to talk directly to customers. They de- “Only Wisconsin cheese,” Workman cided to explore opening a retail store firmly says. “We have everything here that features their own cheese as well as in the state. That’s what’s so awesome other Wisconsin cheesemakers’ products about Wisconsin. — “because we have the best cheeses BRINGING A SPOTLIGHT TO AMERICA’S DAIRYLAND — Bruce and Kathy Workman of in the world … why go anywhere else?” Edelweiss Creamery will open a retail store in Verona, Wis., next month featuring their Bruce Workman says. cheeses as well as those of other Wisconsin cheesemakers. The dream of a retail store will be- “I know all of come a reality at the end of May — just The store will be open seven days a The Workmans are looking forward in time to celebrate June Dairy Month the cheesemakers week, Monday through Saturday, 9 a.m. to having their fellow cheesemakers’ — when the Workmans open “Edelweiss in the state, and I want to 6 p.m., and Sundays, noon to 6 p.m. products in their store as well as their Cheese Authentic Wisconsin,” a cheese “We really want to try to meet the own. The company makes just under 2 retail shop in Verona, Wis., featuring to bring everybody in to needs of people who are working and on million pounds of cheese annually, and Wisconsin cheese. be part of this store. their way home,” Kathy Workman says. about 90 percent of Edelweiss Cream- The store has been a few years in The 800-square-foot store also will ery’s cheese is sold under other labels. the making. We want to make sure include a kitchen where quiches, cheese In addition to the cheeses produced “We had been talking about a store we have as many and meat sandwiches, snack packs and under the Edelweiss Creamery label, for a couple of years, and we are ready other cheese-related fare will be pre- Workman also makes the cheese for for a new venture,” says Kathy Workman, cheeses as we can. pared. Purchases can be made to go, but Edelweiss Graziers Co-op using milk who recently retired from her career as We’ll be able to fill there will be seating for 12 inside as well from the five co-op families dedicated to a teacher to pursue the couple’s dream as outside seating once the landscaping rotational grazing. The cows are grazed of operating a store. up the place is completed. whenever possible, allowing the unique Finding the right location was one of in a heartbeat.” The Workmans’ desire is for Edel- flavors and seasonality of the forage to the biggest hurdles. After looking for a weiss Cheese Authentic Wisconsin to come through in the milk and, subse- while, they learned of a 1950s bungalow Bruce Workman become a destination. The store is lo- quently, the cheese. in Verona at 202 West Verona Avenue. EDELWEISS CREAMERY cated along a major bike trail, and they All told, the company currently makes Verona, 25 minutes away from their would love to see customers ride their about 23 varieties of cheese, and Bruce plant in Monticello, is an ideal location bikes and stop in for a glass of wine, a Workman most enjoys making cheeses because the southwest Madison suburb cheese flight and some jazz music on a without added flavors. doesn’t have a store devoted to cheese “I know all of the cheesemakers in Sunday afternoon. “I don’t like to add condiments; I and is one of the fastest growing com- the state, and I want to bring everybody The Workmans expect to open the want the cheese to stand alone,” he says. munities in Wisconsin, Bruce Workman in to be part of this store. We want to store with about 150 cheese varieties That said, he knows many people are says. The couple was able to get the house make sure we have as many cheeses as on hand. As they work on the last details seeking added flavors, so he produces rezoned for commercial business and is we can. We’ll be able to fill up the place in these six weeks before opening, they some of those cheeses as well. In fact, the in the process of completely renovating it in a heartbeat,” he says. are keeping all kinds of consumers in company’s Onion Havarti placed third in top to bottom, complete with brick front In fact, the Workmans are doing their mind — those who haven’t really experi- its class at the American Cheese Society and spacious garden. The full details of best to make sure as many products mented with cheese and are looking for (ACS) competition last summer. Over the the decor still are being worked out, as possible in the store are sourced in a basic Cheddar or Jack and those who past several years, the company’s Muen- but Kathy Workman describes it as “a Wisconsin, including Wisconsin meats are looking for a high-end artisan cheese ster, grass-based Emmentaler and grass- bit eclectic.” and microbrews. Bruce Workman says for a special occasion. Pre-packed cuts based Gouda also have been honored The store will be more than just a there will be a few Wisconsin wines too. of cheese will be available as will a deli in the ACS competition, the Workmans place to buy cheese. The Workmans are In addition to cheese-knowledgeable case with cheeses that can be cut and say. In addition, the company’s Havarti in the process of obtaining a beer and people working in the store, a video will wrapped on site. placed first and Muenster placed third wine license for the establishment and be available for customers to learn more “There will be a mix of cheeses to fit in the 2010 World Championship Cheese will feature cheese and wine and beer about the cheeses of Wisconsin. all budgets,” Kathy Workman says. Turn to EDELWEISS, page 7
Also in Retail WATCH: Alouette expands spreadable Cheddar line … Page 6 Crystal Farms introduces new products … Page 7
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 6 CHEESE MARKET NEWS® — April 13, 2012 RETAIL ROUND-UP Cabot announces it will be exclusive cheese sponsor of 2012 Grilled Cheese Invitational CABOT, Vt. — Cabot Creamery Co- in all of us,” says Candace Karu, Cabot’s Tim Walker, chief instigator and While attending the invitational, operative recently announced that it lifestyle commentator and one of the founder of the Grilled Cheese Invita- attendees can visit Cabot’s “Cheddar is the exclusive cheese sponsor of the executive judges of the competition. tional, notes that growing up on the Reception” tent, a 40-foot by 40-foot 2012 Grilled Cheese Invitational, which “April is National Grilled Cheese East coast, Cabot was his family’s “go area full of Cabot cheese samples and will be held April 28 at the Rose Bowl month, and being a part of the Grilled to” cheese. hot grilled cheese sandwiches featur- Stadium in Pasadena, Calif. Cheese Invitational is a unique op- “Cabot’s dedication to communities ing some of the company’s recipes. “We’re truly excited to be a part portunity for our farmers to share the and their farm families makes their For more information on the 2012 of this amazing and zany event that Cabot brand with our good friends on cheese taste even better, and I for one Grilled Cheese Invitational, visit www. strives to honor a little bit of the ‘chef’ the West coast.” am glad they are a part of our 10th year.” grilledcheeseinvitational.com. CMN Alouette expands spreadable Cheddar line Coupons saved consumers billions in 2010 NEW HOLLAND, Penn. — Alouette Anton Villa, director of marketing LIVONIA, Mich. — Increasing con- that found 78.3 percent of consum- Cheese has added Sharp Cheddar and new products, Alouette Cheese. “We sumer use of coupons helped thrifty ers regularly used coupons in 2010, Bacon Cheddar flavors to its line of are very enthusiastic to add two new shoppers save $3.7 billion in 2010, which is up from the 77 percent re- spreadable Cheddar cheese. Cheddar flavors to an award-winning nearly a 6-percent increase from ported in 2009 and the 75.8 percent Sold in a ready-to-serve 6-ounce lineup that already includes Alouette 2009, according to Valassis media reported in 2008. container with a suggested retail price Garlic & Herbs and Alouette Savory and marketing companies. “Consumer demand for coupons of $4.99, the new flavors feature a full Vegetable Soft Spreadable Cheese.” Marketers distributed 332 billion remained high in 2010 as shopping body and robust flavor, the company The new Cheddar flavors are made in 2010, which is more than in any habits created during the most re- says. with 12-month aged Cheddar, are prior year and 21 billion more cou- cent recessionary period sustained “Bacon is a top 10 food trend of Kosher certified and gluten-free, the pons than were distributed in 2009. throughout the sluggish economic re- the decade according to the Food company says. “Marketers are distributing more covery that occurred during the year,” Network, and Cheddar is the world’s For more information, vis- coupons in the marketplace to reach says Charlie Brown, vice president of best selling cheese,” says Cristina it www.alouette.com. CMN today’s value-centric consumer,” says marketing, NCH Marketing Services. Suzie Brown, chief marketing officer, In a pre-recession survey, 63.6 Forever Cheese partners with Carbonfund Valassis. “For years, we have heard percent of consumers reported us- that the consumer is king and this ing coupons. BETHESDA, Md. — Forever Cheese has 1 million trees by the end of the year. rings so true today. Shoppers and Valassis also found that the aver- joined the Carbonfund.org Foundation, which “In 2011, we planted over 325,000 trees. savings go hand in hand.” age face value of a coupon distributed allows business to receive one free tree for Earth Day 2012 provides a perfect celebration Redemption value in the United in 2010 was $1.46, a 6.6 percent every two trees purchased and planted for for businesses like Forever Cheese to be a States grew more than 3 percent to increase from 2009. However, the Earth Day. part of this collaborative, global effort,” says 3.3 billion in 2010. The increasing 9-week expiration window in 2010 Forever Cheese immediately fund- Carbonfund.org. trend of consumers using coupons is approximately a week and half ed the planting of 7,500 trees globally. To learn more about the promotion, e-mail was further supported by a NCH shorter than the average expiration The Carbonfund.org is striving to plant Alterra Hetzel at [email protected]. CMN Marketing Service consumer survey time in 2009. CMN Kraft Foods rolls out ‘Fresh Take’ campaign GLENVIEW, Ill. — Kraft Foods Inc. restaurants to get a quick meal,” says has rolled out a new campaign, Fresh Arthur Sevilla, brand manager, Kraft Take, which blends cheeses and sea- Foods. “Kraft Fresh Take offers a fla- soned bread crumbs that dress up tra- vor upgrade to your go-to recipes like ditional dishes in about five minutes. chicken or tacos. With minimal prep With Americans cooking at home you could enjoy chili-lime and panko more often and busy schedules adding tilapia tacos at your next taco night.” to the pressure of finding new dinner Fresh Take products are packaged ideas, Fresh Take aims to minimize the in a compartmentalized bag that also stress of meal planning while deliver- serves as a mixing bowl. The bag is ing fresh and flavorful entrees that can opened to break a center seal, com- be prepared quickly, the company says. bining cheese and seasoned bread “Most families rely on the same few crumbs. Creating dinner recipes week after week, or To learn more, visit www. Successful they turn to takeout and drive-through kraftfreshtake.com. CMN Partnerships The Melting Pot celebrates National Cheese is a Process! Fondue Day with fondue for 25,000 people TAMPA, Fla. — The Melting Pot fon- $16 per selection, and prices vary by Dairyfood USA has the capabilities to offer you products with a full flavor due restaurant franchise offered free locations. profile, texture and mouth feel to meet the cheese fondue to the first 25,000 people “We are known for our cheese most discerning pallet. Our customized formulas can Dairyfood USA offers: who signed up for its Club Fondue April fondues and just want to share that help differentiate your product in the marketplace and s 3UPERIOR 4ASTE 5SING 11 in celebration of National Cheese decadence with America as we leverage help drive sales and improve your bottom line. From .ATURAL )NGREDIENTS single serve to 2-lb. cups, cheese wedges or deli links, s ,ONGER 3HELF ,IFE Fondue Day. a nationally-recognized day (April 11) our commitment to quality will meet or exceed your s .ATURALLY 3MOKED Emmi Roth USA, the cheese vendor to grow our e-mail program’s database, expectations. s #USTOMIZED for The Melting Pot’s cheese fondues, introduce our brand to new guests and &ORMULATIONS helped sponsor the event, pitching in share the unique dining experience s 31&