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NEW 2-PIECE DESIGN CHEESE REPORTER Precise shreds with Urschel Vol. 145, No. 19 • Friday, October 23, 2020 • Madison, Wisconsin New $470 Million Cheese, Whey Milk Production Rose 2.4% In Sept.; Plant Starts Operations In Michigan Milk Cow Numbers When Fully Operational, Facility Will Produce site for the new MWC facility due Increased For Third to the growing supply milk in the Straight Month Over 300 Million Pounds Of Cheese Annually region, the excellent transporta- tion infrastructure in the region, Washington—US milk produc- St. Johns, MI—MWC, a $470 mil- a two-year period to meet exacting proximity to customers, and the tion in the 24 reporting states dur- lion cheese and whey plant in St. food manufacturing standrds. positive business environment and ing September totaled 17.2 billion Johns, MI, began receiving milk As a business-to-business com- strong local workforce reputation pounds, up 2.4 percent from Sep- Tuesday from local dairy farmers, pany, MWC doesn’t produce in the region. tember 2019, USDA’s National marking the first day of operations cheese or whey proteins for direct Michigan’s milk production Agricultural Statistics Service for the facility and beginning the sales to consumers. has increased significantly in (NASS) reported Tuesday. commissioning phase. The types of cheese made at recent years, rising from 8.3 bil- The August milk production Commissioning operations at MWC will include Cheddar, lion pounds in 2010 to 11.4 billion estimate was revised up by 1 mil- MWC will take place over the Monterey Jack and Colby Jack in pounds in 2019. lion pounds, so output was still up next eight months and will see the 40-pound and 640-pound blocks. Neighboring states have also 1.9 percent from August 2019. initial 1 million pounds of milk per MWC will process the whey from increased their milk production Production per cow in the 24 day increase to its designed capac- its cheesemaking operation into over the past decade. Wisconsin’s reporting states averaged 1,944 ity of 8 million pounds of milk per whey protein concentrate and milk production grew from 26 bil- pounds in September, 36 pounds day. whey protein isolate. lion pounds in 2010 to 30.6 bil- above September 2019. When fully operational, the In addition to making cheese lion pounds in 2019, Indiana’s The number of milk cows on 375,000-square-foot plant build and whey products, permeate from milk production rose from 3.4 bil- farms in the 24 reporting states in on a 120-acre lot will employ 260 the MWC facility will be shipped lion pounds in 2010 to 4.1 billion August was 8.851 million head, people and process over 2.9 billion by pipe across the parking area to pounds in 2019 and Ohio’s milk 46,000 head more than September pounds of milk into more than 300 an $85 million facility operated by output rose from 5.3 billion pounds 2019 and 6,000 head more than million pounds of block cheese and Proliant Dairy Ingredients. Proli- in 2010 to 5.4 billion pounds in August 2020. 20 million pounds of value-added ant will further process the whey 2019. Milk cow numbers in the 24 whey protein powders each year. permeate into dairy ingredients At the same time, while the vol- reporting states have now increased A joint venture between Glan- for global distribution into food ume of milk pooled on the Mideast for three straight months, after bia Nutritionals, Dairy Farmers of and feed applications. Proliant is order (which consists primarily reaching a 2020 low of 8.827 mil- America (DFA) and Select Milk expected to begin receiving per- of Michigan, Indiana and Ohio) lion head in June. Producers, MWC is described meate from MWC within about a increased by 2.9 billion pounds, Milk production for the entire as one of the most technically week of production commencing from 16 billion pounds in 2010 to US during the July-September advanced dairy processing facilities at the site. quarter totaled 55.3 billion pounds, in the US, designed and built over St. Johns was selected as the • See New Michigan Plant, p. 9 up 2 percent from the same quarter in 2019. Second-quarter milk produc- FDA Launching Pilot Common Mistakes At Retail Turn tion had been up 0.5 percent from Program To Evaluate 2019’s second quarter, while milk Cheese From Incredible To Inedible output in the first quarter (which Alignment Of Third Madison—Cheese makers can where along the distribution had an extra day due to leap year) deliver a near-perfect product and retail chain, the cheese was was up 3.1 percent from a year ear- Party Food Audits to retail cheese counters, only abused and became bad cheese. lier. With FDA Regulations to have common mishandling Sadly, it’s very easy to find cheese diminish quality in both taste and defects at retail. • See Milk Output Up, p. 6 The US Food Silver Spring, MD— appearance. One of the most common fac- 9450 and Drug Administration (FDA) The topic of “cheese abuse” tors that damages cheese at the today announced that it is launch- Total Milk Cows at the retail level was outlined retail level is light, he noted. Jan. 2018 to Sept 2020 ing a voluntary pilot program to 9425 recently at a virtual meeting of A bright light in a display case (1,000 head) evaluate alignment of private the Wisconsin Specialty Cheese can wreck a lot of cheese, he Septembers in black third-party food safety audit stan- Institute (WSCI). said. Many retailers store cheese dards with the food safety require- Dean Sommer, food technolo- in transparent, plastic containers. 9400 ments in two regulations under the gist and senior manager of the This is just begging for problems, Food Safety Modernization Act cheese team with the Wiscon- because light can easily penetrate (FSMA): the preventive controls sin Center for Dairy Research most types of transparent con- 9375 for human food rule and the pro- (CDR), along with CDR distin- tainers and damage the fat that’s duce safety rule. guished scientist Mark Johnson, on the surface of cheeses like 9350 On July 13, FDA had announced presented research on how good Ricotta, Feta, and softer goat and the New Era of Smarter Food Safety cheese can go bad after it hits sheep’s milk varieties. Blueprint and the desire to explore retail shelves. When we buy those types of 9325 the increased use of reliable third- My hypothesis is there’s a lot of products for a sensory evaluation party audits to help ensure safer bad cheese at the retail level, but short course, more often than food, including exploring the use it was good cheese when it left 9300 • See FDA Launching, p. 10 the plant, Sommer said. Some- • See Retail Cheese Abuse, p. 5 J 18 J 19 J 20 S Page 2 CHEESE REPORTER October 23, 2020

Past Issues Read this week’s issue EDITORIAL COMMENT or past issues of Cheese Reporter on your mobile phone or Beyond the farm bill, arguably tablet by scanning this the biggest area where the next QR code. DICK GROVES president’s influence will be felt is Cheese Reporter Publishing Co. Inc. ©2020 in the area of trade. And in this 2810 Crossroads Drive, Suite 3000 area, President Trump has a pretty Publisher / Editor Madison, WI 53718-7972 clear record. (608) 246-8430 • Fax (608) 246-8431 Cheese Reporter http://www.cheesereporter.com e: [email protected] DICK GROVES tw: @cheesereporter Publisher/Editor e-mail: [email protected] 608-316-3791 MOIRA CROWLEY Voting Seems Like A Good Idea Here In 2020 Specialty Cheese Editor There’s an election coming up on as we’ve seen here in 2020, there Japan; and would have increased e-mail: [email protected] 608-316-3793 Tuesday, Nov. 3, and as always are unforeseen times when the fed- dairy imports from all TPP mem- we’re going to make just one rec- eral government has to get more bers by $369 million, mainly due KEVIN THOME Advertising & Marketing Director ommendation: Vote. heavily involved in agricultural to increased imports from New e-mail: [email protected] We might be a tad behind the markets than is already the case, Zealand and Canada. 608-316-3792 curve on that recommendation; so chances are the House and Sen- Withdrawing from the TPP was BETTY MERKES some reports indicate that as many ate Ag Committees will be pretty just the start of Trump’s accom- Classifieds/Circulation Manager as 50 million Americans have busy over the next two years even plishments on trade. Under the e-mail: [email protected] 608-316-3790 already voted, so “Election Day” without having to write a farm bill. Trump administration, the US will be more like “Election Month” Speaking of the farm bill, if he’s placed tariffs on imports from a REGULAR CONTRIBUTORS: Jen Pino-Gallagher, Bob Cropp, Brandis (or longer) this year. re-elected, President Trump will number of countries, including Wasvick, Dan Strongin, John Umhoefer The “main event” in this year’s have the privilege of signing two Mexico and China among many You can e-mail our contributors at: election is the race for president, farm bills. He already signed the others, and in turn many countries [email protected] which started sometime in early 2018 farm bill into law and, as placed tariffs on dairy and other The Cheese Reporter is the official 2016, shortly after President Trump noted earlier, most provisions of imports from the US. publication of the following associations: took the oath of office. Depend- that legislation expire in 2023, or These trade “wars” also brought California Cheese & Butter Association ing on how the presidential race the year before the next presiden- about at least one new (or at least Lisa Waters, goes, Trump could be the fourth tial election. relatively unknown) term: trade 1011 Pebble Beach Dr, Clayton, CA 94517 president in a row to win a second How many farm bills a two-term mitigation. The Trump adminis- Central Wisconsin Cheesemakers’ and term (following Barack Obama, president signs has varied over the tration’s trade mitigation efforts Buttermakers’ Association Jim Mildbrand George W. Bush and Bill Clinton) past 40 years. President Reagan included two programs that directly [email protected] or the first incumbent to be denied signed into law both the 1981 and impacted the dairy industry: the Cheese Importers Association of America a second term since George H. W. 1985 farm bills, President Clin- Market Facilitation Program, 204 E St. NE, Washington, DC 20002 Bush. ton signed only the 1996 farm which provided direct payments to Eastern Wisconsin Cheesemakers’ and But there are, as always, many bill (after President George H. W. dairy farmers; and the Food Pur- Buttermakers’ Association other races beyond the presidential Bush signed the 1990 farm bill), chase and Distribution Program, Barb Henning, Henning’s Cheese 21812 Ucker Road, Kiel, WI 53042 race this year. There are 11 guber- President George W. Bush signed under which USDA buys dairy and both the 2002 and 2008 farm bills, other agricultural products and International Dairy-Deli-Bakery Association natorial races, 35 US Senate races 8317 Elderberry Road, Madison, WI 53717 and 435 US House races. and then President Obama signed distributes them through various Among other things, the Sen- only the 2014 farm bill. nutrition assistance programs. Missouri Butter & Cheese Institute Terry S. Long, 19107 Factory Creek Road, ate and House elections will deter- Beyond the farm bill, arguably Meanwhile, the Trump admin- Jamestown, MO 65046 mine who controls, and chairs, the the biggest area where the next istration has been negotiating or Nebraska Cheese Association Senate and House Ag Committees president’s influence will be felt is renegotiating several trade agree- Ed Price, Fremont, NE 68025 in 2021 and 2022. In the Sen- in the area of trade. And in this ments with important dairy pro- New York State Cheese Manufacturer’s Assn ate, US Sen. Pat Roberts (R-KS), area, President Trump has a pretty visions, most notably the United Kathyrn Boor, 11 Stocking Hall, chairman of the Senate Ag Com- clear record. States-Mexico-Canada Agree- Cornell University, Ithaca, NY 14853 mittee, isn’t running for re-elec- After all, his term was all of ment, which entered into force on North Central Cheese Industries Assn tion, guaranteeing a new chair for three days old when, on Jan. 23, July 1, 2020. The dairy industry Lloyd Metzger, SDSU, Box 2104, Brookings, SD 57007 that panel. And if Democrats end 2017, he signed a memorandum will continue to feel the impact of up winning control of the Senate, for the United States Trade Rep- that agreement for many years to North Dakota Cheese Makers’ Assn Chuck Knetter, Medina, ND 58467 that means a Democrat will chair resentative to withdraw the US come (although that depends, in Ohio Swiss Cheese Association the Ag Committee. from the Trans-Pacific Partnership part, on whether Canada actually Lois Miller, P.O. Box 445, In the House, US Rep. Collin Agreement, which included the complies with the dairy provisions Sugar Creek, OH 44681 Peterson (D-MN) chairs the Ag US and 11 other countries. of the USMCA). South Dakota State Dairy Association Committee, and he’s facing what is From a US dairy industry per- As frustrating is it might be to Howard Bonnemann, SDSU, Box 2104, spective, the TPP looked like a admit, after decades of becoming, Brookings, SD 57007 being described as a very competi- tive campaign against former Lt. pretty good agreement. Accord- or trying to become, more market- Southwestern Wisconsin Cheese Makers’ Association Gov. Michelle Fischbach. So it’s ing to a US International Trade oriented, the US dairy industry Myron Olson, Chalet Cheese Coop, possible there could be new chairs Commission report released in continues to feel the influence of N4858 Cty Hwy N, Monroe, WI 53566 of both the Senate and House Ag May 2016 (about three months government involvement, and that Wisconsin Association for Food Protection Committees next year. after the participating nations will no doubt be the case next year Bob Wills In at least one way, that may not signed the agreement), the TPP and beyond, no matter who cap- PO Box 620705, Middleton WI 53562 be all that important; most provi- agreement would have increased tures the White House and who Wisconsin Cheese Makers’ Association John Umhoefer, 5117 W. Terrace Dr., sions of the 2018 farm bill don’t US dairy exports to TPP member controls Congress. So we highly Suite 402, Madison, WI 53718 expire until 2023, so the next farm countries by $2.0 billion relative recommend voting, because if you Wisconsin Dairy Products Association bill won’t be written until after to the baseline, mainly due to don’t vote, don’t complain about Brad Legreid, 8383 Greenway Blvd., the 2022 mid-term election. But increased exports to Canada and the level of that involvement. Middleton, WI 53562

CHEESE REPORTER (Publication Number: ISSN 0009-2142). Published weekly by Cheese Reporter Publishing Co. Inc., 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-7972; Phone: (608) 246-8430; Fax: (608) 246-8431. Subscriptions: $140.00 per year in USA; Canada and Mexico: $195.00 per year; other foreign subscribers, please write for rates. Advertising and Editorial material are copyrighted material. Any use without publisher’s consent is prohibited. Cheese Reporter does not endorse the products of any advertiser or any editorial material. POSTMASTER: If undeliverable, Form 3579 requested. Periodicals postage paid at Madison, WI. Address all correspondence to: Cheese Reporter, 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-7972 October 23, 2020 CHEESE REPORTER Page 3

entertainment will bring a unique pany’s co-founders, Ryan Pandya Maker Of Impossible Burger Is Doubling blend of operational and global and Perumal Gandhi, and repre- Its R&D Team, Wants To End Animal Ag market excellence to Perfect Day, sentatives from lead investors, the company said. As Perfect Day Aftab Mathur and Patrick Zhang several other ingredients, includ- works to establish the animal- of Temasek Holdings and Horizons Disney’s Iger Joins ing, among others, potato protein, free dairy category, Iger is poised Ventures, respectively. Perfect Day’s Board methylcellulose, yeast extract, cul- to help the company execute its Establishing a well-rounded tured dextrose, food starch modi- rapid expansion plans and succeed board comes at a crucial time for Redwood City, CA—Impossible fied, soy leghemoglobin, and soy in its mission to create a kinder, Perfect Day as the alternative pro- Foods, maker of the Impossible protein isolate. greener tomorrow by developing tein industry continues to grow, Burger, is expanding its multifac- Earlier this year, the company new ways to make the foods people the company said. eted technology platform, accel- also launched Impossible Sausage love today. Perfect Day has over $360 mil- erating product development Made From Plants. “Innovation and leadership are lion in total funding to date, the and plans to double the size of its In other news involving com- both key to world-changing ideas,” company announced. research and development team panies making non-dairy alterna- Iger said. “Perfect Day has estab- The recent acceleration has over the next year. tives, Perfect Day, Inc., the maker lished both innovation in its use of been supported by continuing In addition to doubling the size of animal-free, “flora-made” dairy technology and novel approach to expansion of production capacity of its R&D team over the next protein, announced the appoint- fighting climage change, and clear of its animal-free dairy protein, year, Impossible Foods is launch- ment of Robert Iger, executive leadership in building a category solidifying new brand and food ing the “Impossible Investigator” chairman of The Walt Disney with a multi-year head start in the service partners, and establishing project. Impossible Investigator Company, to its board of directors. industry they’re helping to build.” commercialization plans in new positions are described as high- Iger’s decades of business leader- Iger joins Perfect Day’s board product categories within the next impact alternatives to traditional ship experience across media and of directors alongside the com- year. academic faculty positions; the roles present an opportunity for scientists who want the facilities, resources and environment to cre- ate an entirely new technology platform to replace animals as the technology for turning plants into meat, fish and dairy foods. In addition to an inaugural class of 10 Impossible Investigators, Impossible Foods also has about 50 immediate openings for scientists, engineers and other R&D profes- sionals to join existing projects; more will be posted throughout the end of the year and beyond, the company said. Impossible Inves- tigators and the more structured roles will more than double the size of the company’s R&D team over the next year. Impossible Foods has raised approximately $1.5 billion since its founding in 2011, including $700 million in two rounds this year, which it will use to fund the expansion of its technology plat- form and R&D team. “Scientists want to solve the world’s biggest challenges. And the greatest problem we face today is our reliance on animal agricul- ture, the most destructive tech- nology on Earth,” said Dr. Patric O. Brown, CEO and founder of Impossible Foods. The Impossible Investigator program asks scientists at all career stages to envision an all-new research program within the broad scope of the company’s mission. They can propose anything from short-term strategies to accelerate the optimization of plant-based milk or fish to longer-term ideas for an improved supply chain of plant proteins and other ingredients. Impossible scientists’ best- known achievement to date is the Impossible Burger, which the company said is the result of nearly a decade of basic science and research and development. The ingredient list for the Impos- sible Burger is as follows: water, soy protein concentrate, coconut oil, sunflower oil, and natural fla- vors, as well as 2 percent or less of For more information, visit www.tetrapakusa.com Page 4 CHEESE REPORTER October 23, 2020

Milk Prices Showing Surprising Strength by Dr. Bob Cropp from our Dairy Situation & Outlook: October 20, 2020 Somewhat surprising we will see than a year ago with almost all the duction, domestic sales and exports archives considerable strength in October increase contributed to China as are crucial. But so important will milk prices. Class III was $24.54 they attempt to build back their be how soon the COVID-19 virus back in July but had fallen to swine herd. slows down. 50 YEARS AGO Oct. 23, 1970: Washington— $16.43 by September. Butter prices have been rather Until it does restaurants will What are the nutrients in a glass It looks like Class III for Octo- weak all year. A year ago at this not be fully open, schools and col- ber will increase to about $21.40 time butter was over $2 per pound. leges will be virtual learning rather of milk, a slice of meat or a piece reaching or surpassing the previ- Butter has been below $2 per pound than in person instruction. Major of bread? Answers to these and ous record for the month of Octo- all year being as low as $1.15 in sports will not have audiences in other questions will be found in ber set in 2014 at $21.35. Cheese April and only as high as $1.90 in the stands and major events and the 1970 edition of “Nutritive prices have increased as well as June. It is now $1.4975. conferences will not be held or if Value of Foods,” one of USDA’s dry whey prices pushing Class III But nonfat dry milk prices have they are, they may be virtual. most popular bulletins. The pub- prices higher. improved with very strong exports. The COVID-19 virus is hurt- lication will give nutritive values On the CME 40-pound Ched- August exports were 35 percent ing not only the United States for household measures of 615 dar blocks have been above $2 per higher than a year ago. Nonfat dry economy but the world economy foods commonly used in the US. pound since early September and milk was $1.03 per pound early which impacts domestic sales and as of today it is $2.74. Cheddar bar- September and is now $1.1275. exports. Madison—Shopping for kilo- rels also hit $2 per pound on Octo- This will push the Class IV price Milk production continues to grams of potatoes or grams of ber 6th and is now $2.30. Dry whey from $12.75 in September to about run at a relatively high level put- cheese may sound foreign to had been holding around $0.33 per $13.55 in October but still leav- ting downward pressure on milk most home makers, but it could pound but is now $0.3875 adding ing more than a $7 spread between prices. USDA’s report on Septem- soon become a reality. The US is more than $0.30 to the Class III Class III and Class IV prices. ber milk production showed milk currently the only major nation price. production 2.3 percent higher than in the world that’s not using the Factors contributing to higher a year ago, the result of 0.4 percent metric system. cheese prices include cheese pro- more cows and 2.0 percent increase duction, retail sales, government Factors contributing in milk production per cow. Milk 25 YEARS AGO purchases and exports. to higher cheese cow numbers have been increas- Oct. 20, 1995: Baton Rouge, The latest dairy product produc- prices include cheese ing since July with July up 7,000 LA—Americans who eat a low- tion report was for August show- head, August 4,000 and September fat diet don’t lose weight because ing American cheese production production, retail sales, 5,000. they eat too many carbohydrates 1.3 percent lower than a year ago government purchases Of the 24 reporting states 16 out of ignorance about the rela- with total cheese production 2.1 and exports. had more milk. All the five leading tive importance of fat and calo- percent lower. dairy states that produce over half ries, researchers reported this As consumers continue to eat of the nation’s milk production had week. “I would argue we’re not more meals at home retail cheese Class III dairy futures remain higher milk production. Compared sales have been relatively strong. strong for the remainder of the going to treat obesity by reducing to last year production was up 3.2 dairy fat alone,” said University The government is purchasing year with November at $21.44 and percent in California, 0.7 percent cheese under the third round of December at $19.38. Whether of Colorado-Denver food scien- in Wisconsin, 2.9 percent in Idaho, tist James Hill. the Farmers to Families Food Box Class III will hold at this level is 1.4 percent in New York and 6.5 program which ends on October not certain, but it looks like Class percent in Texas. Ripon, WI—If milk support 31st. III for the year will average over Of all the states South Dakota prices, the CCC and federal With cheese prices above world $18 compared to the 2019 average had the largest increase at 12.3 per- milk marketing orders disappear prices it was surprising that August of $16.96. cent. Other strong increases were because Congress deregulates the cheese exports were 17 percent As we look into next year there Indiana at 9.0 percent, Colorado dairy industry, there’s no need to higher than a year ago. Dry whey remains a lot of uncertainty about at 7.8 percent, and Kansas at 6.8 panic, Alto Dairy Cooperative exports were 54 percent higher milk prices. The level of milk pro- percent. president and general manager There were decreases in milk Larry Lemmenes assured mem- production of 2.2 percent in Ari- bers here this week. There’s zona, 3.7 percent in Florida, 5.5 been much talk, but perhaps we Identify, Organize, and percent in Vermont and 0.9 per- shouldn’t be fearful of deregula- cent in New Mexico. Create E ciencies in USDA is forecasting 2021 tion, Lemmenes said. milk production to be 1.4 percent 10 YEARS AGO your Inventory Program higher than this year with just a Oct. 22, 2010: Brussels, Bel- 5,000 head increase in the average gium—The European Com- herd size and a 1.4 percent increase mission announced that it will Nelson-Jameson has the products and services in milk per cow. propose a temporary suspension to help streamline your inventory process. At this level of milk production, of animal cloning for food pro- it will take good domestic sales and duction in the EU. The Com- • Organize and identify with products from our exports to provide good milk prices. Storeroom Solutions Guide. mission also plans to suspend As of now it seems reasonable to temporarily the use of cloned • Analyze your usage and purchasing trends. assume 2021 milk prices could be farm animals and the marketing • Discover our services to assist with creating less volatile. Class III could be in of food from clones. inventory programs. the $16’s first half of the year, reach Contact our Inventory Solutions Team at the $17’s in the second a half and averaging in the high $16’s or low Seymour, WI—The Charity 800-826-8302 or [email protected] Cheesemakers Golf Outing raised to discuss your inventory needs. $17’s for the year. If the COVID-19 is under con- over $5,200 for CureSeach can- trol, there could be a good rally in cer research. The annual outing milk prices for the second half of was established by Mike Bren- the year. nenstuhl, Seymour Dairy Prod- But, this far from certain. Dairy ucts; Larry Seyferth, Johnson 1-800-826-8302 • nelsonjameson.com Industries International; Todd [email protected] farmers should seriously consider signing up for the Dairy Margin Hutson, Filtration Engineering; For more information, visit www.nelsonjameson.com Coverage program for 2021. BC and Jim Banks, Norit Sudmo. October 23, 2020 CHEESE REPORTER Page 5

Global Dairy Retail Cheese Abuse an orange color. Light abuse first the light will have a much higher (Continued from p. 1) degrades the yellow component, surface temperature. Trade Price Index which turns the cheese a pinkish “ I took a thermometer once and not, they’re so heavily oxidized that color, he continued. Gouda cheese measured the temperature of the Increases 0.4%; they’re virtually inedible, Sommer is very susceptible to this, and it’s cheese at the surface and it was Cheddar, Butter, said, especially on the surface. typically a surface phenomenon. around 70 degrees,” Sommer said. These containers are also not However, discoloration can “Just because a cheese is in a refrig- WMP Prices Rise typically gas-flush, so there’s lots penetrate as far as one quarter of erated dairy case doesn’t mean the Auckland, New Zealand—The of oxygen in there, he said. When an inch when exposed to light long cheese is cold.” price index on this week’s Global you combine oxygen and light, enough, Sommer said. The fluorescent lights typically Dairy Trade (GDT) dairy com- you’re just begging for problems. Remember, imported cheeses used in these cases put out a lot of modity auction increased 0.4 per- Unpleasant flavors yielded from don’t have added color, Johnson heat, he continued. An LED light cent from the previous auction. light-oxidized cheese are described added. The beta carotene in grass might be an advantage, since they That marked the third straight as “cardboard-y” or “crayon-like.” will also oxidize like annatto does. don’t get as hot. Temperature can also affect increase in the GDT price index. It destroys great cheese at the gro- Current research suggests there’s gas forming issues. For this, Som- Results from this week’s GDT cery store, wrecks repeat sales, and little to no difference between mer looks for cheeses stacked very auction, with comparisons to the causes the formation of unhealthy LED lights and incandescent light tightly and close to lights in dis- auction held two weeks ago, were: compounds, he said. regarding light damage to cheese. play cases. The average Cheese makers can help prevent Cheddar cheese: Lower Light Reduces Pinking “Inevitably, I’ll find the ones winning price was $3,803 per met- light oxidation by their choice of Light intensity is the obvious solu- film, Sommer said. Parchment closest to the light are the warm- ric ton ($1.72 per pound), up 3 per- tion to light oxidation, Sommer est ones and gassed up,” he said. cent. Average winning prices were: paper provides some protection, said. Retailers are recommended along with butcher paper. Black When you temperature abuse Contract 1 (November), $3,904 to lower the light intensity to cheeses like Baby Swiss or smear per ton, up 1.1 percent; Contract or dark film is almost totally pro- between 160 and 200-foot candles tective from light penetration and ripened styles especially, gas form- 2 (December), $3,765 per ton, up in the cheese display case. ers kick in and puff up the package 0.4 percent; Contract 3 (January), oxidation. It’s pretty common to find up “As you know, a lot of retailers to easily identify defects, Sommer $3,810 per ton, up 3.7 percent; to 640-foot candles, Sommer said. continued. Contract 4 (February), $3,800 per don’t like black or dark packaging That’s a lot of light energy which and waxes because the consumer With Swiss, researchers find a ton, up 5.9 percent; Contract 5, will rapidly deteriorate cheese lot of problems with splitting and $3,761 per ton, unchanged; and can’t see the cheese unless there’s products. a little window on the back side,” cracking. This means the cheese Contract 6, $3,845 per ton, up 3.1 A light intensity above 300-foot is getting a bit too warm at retail. percent. he continued. candles will cause pinking within Films with lower oxygen trans- When there’s a dramatic change Skim milk powder: The aver- 48 hours, he said. mission rates reduce pinking and in temperature, the structure of age winning price was $2,851 per “Pinking” is another easily iden- light oxidation, Sommer contin- Swiss can’t handle the gas pressure ton ($1.29 per pound), down 0.2 tifiable defect. If it’s really bad, the ued. Another effective tool to and won’t be able to form an eye percent. Average winning prices color is almost white – kind of a protect cheese is a UV blocking because the structure’s too rigid. were: Contract 1, $2,885 per ton, bleached out effect, Sommer said. screen. “So that’s when it splits and down 10.2 percent; Contract 2, “This is a color problem, not cracks and checks,” Sommer said. $2,795 per ton, down 0.4 percent; a flavor problem,” he continued. The Magic Number Is 45 Degrees “We see a lot of this going on with Contract 3, $2,864 per ton, up 0.4 “The color change is just the Storage time and temperature can loaded packages of Swiss at retail.” percent; Contract 4, $2,906 per canary in the coal mine, telling also affect cheese quality. The “The same is true for Cheddars ton, up 1.2 percent; and Contract you there’s some light abuse.” longer the time and exposure, the and Parms,” he said. “There was a 5, $2,930 per ton, up 2.1 percent. Color change is not responsible worse it gets, Sommer said. The bar of Cheddar held at 50 degrees Whole milk powder: The aver- for the off-flavors you’re tasting, higher the temperature, the faster and it puffed up like a football.” age winning price was $3,037 per Sommer said. Color is just an indi- reaction occurs.Composition var- Aged Cheddar is especially sus- ton ($1.38 per pound), up 0.3 cator, and white cheeses suffer just ies from one type to another, and ceptible to this. The cheese may percent. Average winning prices as much from this as colored. low pH cheeses tend to deteriorate still taste great – the gas formers were: Contract 1, $3,100 per ton, The reason cheese turns pink is faster, he continued. don’t produce off-flavors – but the unchanged; Contract 2, $3,017 that annatto has a red component Cheese stacked high in a refrig- overall look is pretty unsightly, per ton, up 0.2 percent; Contract and a yellow component to create erated storage shelf almost up to Sommer said. 3, $3,018 per ton, up 0.1 percent; Contract 4, $3,043 per ton, up 1 percent; and Contract 5, $3,070 per ton, up 1.3 percent. Butter: The average winning price was $3,678 per ton ($1.67 per pound), up 3.3 percent. Aver- age winning prices were: Contract 1, $3,820 per ton, up 3.2 percent; Contract 2, $3,670 per ton, up 4.7 percent; Contract 3, $3,651 per ton, up 2.4 percent; Contract 4, $3,670 per ton, up 3.2 percent; and Contract 5, $3,685 per ton, up 2.4 percent. Create a piquant Anhydrous milkfat: The aver- age winning price was $4,110 per and unique flavor ton ($1.86 per pound), down 0.5 percent. Average winning prices Cater to the demand for were: Contract 1, $4,139 per ton, outstanding taste experiences up 0.8 percent; Contract 2, $4,105 with SpiceIT® MPlus microbial per ton, down 0.4 percent; Con- tract 3, $4,116 per ton, down 0.3 lipase percent; Contract 4, $4,104 per ton, down 0.8 percent; and Con- tract 5, $4,104 per ton, down 1.3. Lactose: The average winning price was $1,087 per ton (49.3 cents per pound), down 8 percent. That was for Contract 2. For more information, visit www.chr-hansen.com Page 6 CHEESE REPORTER October 23, 2020

Milk Output Up pounds, up 1.4 percent from Sep- Total US Milk Production Milk Production by State (Continued from p. 1) tember 2019, due to 1,000 fewer 2020 vs. 2019 (in millions of pounds) milk cows but 30 more pounds of 19,500 STATE Sept Sept % Change California’s September milk pro- milk per cow. New York’s July-Sep- 19,300 2019 2020 Change Cows duction totaled 3.3 billion pounds, tember milk production totaled 19,100 up 3.2 percent from September 3.85 billion pounds, up 1.1 percent 18,900 California 3209 3313 3.2 -4000 2019, due to 4,000 fewer milk from a year earlier. The state’s sec- 18,700 Wisconsin 2500 2518 0.7 -10000 cows but 65 more pounds of milk ond-quarter milk output had been 18,500 Idaho 1298 1335 2.9 15000 per cow. California’s third-quarter down 0.3 percent from 2019’s sec- 18,300 milk production totaled 10.15 bil- ond quarter. 18,100 New York 1235 1252 1.4 -1000 lion pounds, up 2.3 percent from Milk production in Texas dur- 17,900 Texas 1137 1211 6.5 28000 2019’s third quarter. The state’s ing September totaled 1.21 billion 17,700 April-June output had been up 0.8 pounds, up 6.5 percent from Sep- Michigan 929 950 2.3 NC 17,500 percent from a year earlier. tember 2019, due to 28,000 more Minnesota 809 831 2.7 -5000 Wisconsin’s production totaled milk cows and 30 more pounds of 17,300 2.52 billion pounds, up 0.7 per- milk per cow. Texas’s third-quarter 17,100 Pennsylvania 800 815 1.9 -3000 cent from September 2019, due milk production totaled 3.66 bil- 16,900 New Mexico 668 662 -0.9 -2000 to 10,000 fewer cows but 30 more 16,700 lion pounds, up 6 percent from J F M A M J J A S O N D Washington 563 557 -1.1 -2000 pounds of milk per cow. Wiscon- 2019’s third quarter. The state’s sin’s July-September milk produc- April-June milk output had been milk cows but 70 more pounds of Ohio 437 457 4.6 2000 tion totaled 7.74 billion pounds, up up 3.8 percent from the same milk per cow. Minnesota’s third- Iowa 427 439 2.8 2000 0.2 percent from the same period period last year. quarter milk production totaled 2.6 Colorado 399 430 7.8 10000 last year. The state’s second-quar- Michigan’s September milk billion pounds, up 2.4 percent from ter output had been down 1.4 per- production totaled 950 million 2019’s third quarter. The state’s Indiana 321 350 9.0 10000 cent from 2019’s second quarter. pounds, up 2.3 percent from Sep- April-June milk output had been Arizona 358 350 -2.2 -1000 September milk production in tember 2019, due to unchanged down 0.1 percent from a year ear- Kansas 311 332 6.8 8000 Idaho totaled 1.34 billion pounds, milk cow numbers but 50 more lier. up 2.9 percent from September pounds of milk per cow. Michi- Pennsylvania’s September milk South Dakota 235 264 12.3 13000 2019, due to 15,000 more milk gan’s July-September milk output production totaled 815 million Oregon 211 208 -1.4 -1000 cows and 10 more pounds of milk totaled 2.9 billion pounds, up 2.6 pounds, up 1.9 percent from Sep- per cow. Idaho’s third-quarter milk percent from a year earlier. The tember 2019, due to 3,000 fewer Vermont 219 207 -5.5 -5000 output totaled 4.17 billion pounds, state’s second-quarter milk produc- milk cows but 40 more pounds of Utah 187 183 -2.1 -2000 up 3.3 percent from 2019’s third tion had been down slightly from milk per cow. Pennsylvania’s July- Florida 164 158 -3.7 -5000 quarter. The state’s April-June 2019’s second quarter. September milk output totaled milk production had been up 4 September milk production in 2.5 billion pounds, up 2.4 percent Illinois 133 137 3.0 NC percent from a year earlier. Minnesota totaled 831 million from the same period last year. The Georgia 131 130 -0.8 -1000 New York’s September milk pounds, up 2.7 percent from Sep- state’s second-quarter milk produc- production totaled 1.25 billion tember 2019, due to 5,000 fewer tion had been up 0.5 percent from Virginia 115 117 1.7 NC 2019’s second quarter. millions of pounds 1,000 head New Mexico’s September milk production totaled 662 million pounds, down 0.9 percent from All told for the 24 reporting September 2019, due to 2,000 states during September, compared fewer milk cows and five less to September 2019, milk produc- pounds of milk per cow. New Mex- tion was higher in 16 states, with ico’s third-quarter milk production those production increases ranging totaled 2 billion pounds, down 2.6 from 0.7 percent in Wisconsin to percent from 2019’s third quarter. 12.3 percent in South Dakota; and The state’s April-June milk output lower in eight states, with those had been down 4.6 percent from a declines ranging from 0.8 percent year earlier. in Georgia to 5.5 percent in Ver- September milk production in mont. Washington totaled 557 million For the 48 contiguous states dur- pounds, down 1.1 percent from ing the July-September, compared September 2019, due to 2,000 to the same period in 2019, milk fewer milk cows and 10 less pounds production was higher in 24 states, of milk per cow. lower in 17 states and unchanged Washington’s July-September in seven states. milk production totaled 1.7 billion By comparison, during the pounds, down 0.9 percent from the April-June quarter, compared to same period last year. The state’s the same period in 2019, milk pro- second-quarter milk output had duction was higher in 18 states, been down 0.2 percent from 2019’s lower in 25 states and unchanged WAITING IS OVER second quarter. in five states. TANGO. ANALYSIS TO GO.

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Contact us for more details: operator guidance. www.bruker.com [email protected] An intuitive user interface with touch screen Bruker Optics operation makes the analysis of food 40 Manning Road ingredients and fi nished food available Billerica, MA 01821 to everybody. Tel. +978-439-9899 ● Brining Systems & Design Fax. +1 978-663-9177 ● Fiberglass Tanks ● Sanitary Wall & Ceiling Systems Applied Spectroscopy ● Spray Systems Innovation with Integrity ● Brine Tank Ladders & Covers ● Refurbish & Repairs ● Solutions through Fiberglass For more information, visit www.bruker.com/dairy For more information, visit www.fiberglasssolutions.us Page 7 CHEESE REPORTER October 23, 2020

smaller than for general dairy, it is Farmers Still Report Outlines Plan To Modernize vital that artisanal producers can Awaiting Trade Deal Canada’s Supply Management System access consumers across Canada. This measure would be coupled Compensation: Dairy Halifax, Nova Scotia—A report alize, adopt more sustainable and with the creation of an innovation released recently by two Canadian humane practices, and promote fund to entice farmers to innovate Farmers Of Canada universities outlines a 20-year plan innovative methods and compa- and develop new products and Ottawa, Ontario—Dairy Farmers for modernizing supply manage- nies to enter the industry. These markets, while keeping in mind of Canada (DFC) is reminding the ment, fundamentally changing it practices should be embedded into the market attributes consumers federal government that while the to allow the Canadian dairy indus- the CDC’s pricing strategy. are looking. Sustainability, afford- effects of three successive trade try to become more competitive. The pricing formula could be ability and animal welfare should agreements are being felt on farms, “The Canadian dairy industry modified to adopt a more value- be top priorities for this fund. farmers are still waiting for the is facing challenging times,” states chain focus approach and incentiv- Initiate a 20-year plan to reduce compensation they were promised. the report, Supply Management ize the formation of cooperatives general tariffs, develop an export Prime Minister Justin Trudeau, 2.0, which was prepared by the between small farms in each strategy, create a Canadian brand Deputy Prime Minister Christia Agri-Food Analytics Lab at Dal- region, with a higher farmgate and provide incentive for innova- Freeland and Agri-Food Minis- housie University and the Arrell price for dairy to recognize the tion. Canada must accept that the ter Marie-Claude Bibeau have all Food Institute at the University of increased input costs of production reiterated the need to compensate world is moving to a free-market Guelph. If supply management is for smaller producers. The CDC system, regardless of whether or dairy farmers for these trade deals, not fundamentally changed, Can- should consider ways to keep pro- which transfer Canadian milk pro- not it seeks to protect its industries. ada could see half of its current duction capacity in all regions, to A progressive reduction of tariffs duction to dairy farmers in other dairy farms disappear by 2030. support dairy processing. countries who will supply the milk is desirable over a 20-year period, In recent years, Canada has rati- Transparency will be key for but tariffs should not be eliminated for dairy products making their way fied three new trade agreements: the CDC, the report stated. More back to Canadian grocery stores, outright. Canada should become the Comprehensive Economic and information about what it does and an attractive market for importers, DFC stated. Trade Agreement, the Comprehen- how it serves the Canadian public The Comprehensive Economic as much as it is for its own industry. sive and Progressive Agreement for would be helpful. It should become The industry must prepare for this and Trade Agreement (CETA) Trans-Pacific Partnership and the more accountable to the public with the European Union came reality by becoming competitive. US-Mexico-Canada Agreement. than it is today. Canada needs a strategy to export into force in 2017, and the Com- The combined effects of these Remove interprovincial trade prehensive and Progressive Agree- milk and dairy products. Through a trade agreements will harm the barriers on dairy products and coordinated effort between indus- ment for Trans-Pacific Partnership industry in the short term by hav- create an innovation fund for (CPTPP), with New Zealand, try and governments, a new set ing access to 8.14 percent of the the sector. Removal of interpro- Australia and several other coun- quota for export markets could be Canadian domestic market, “lim- vincial trade barriers is essential tries, came into force in 2018, DFC established to attract new investors iting domestic production quotas to promoting artisanal dairy prod- noted. and entrepreneurs to dairy produc- and taking revenue away from ucts. Because the market is much tion and processing. The commitments from the Canadian farms,” the report said. federal government date back to The plan outlined in the report, 2018, and in the case of CETA and which is called Supply Manage- CPTPP, funding was announced ment 2.0, would provide incentives How fit is your cheesemaking equipment? in the 2019 budget, according to for Canadian dairy farmers to adapt DFC. Right before the 2019 elec- to a more liberalized market over tion, the government announced Your plant process goals. time, and to become competitive Our award-winning team. a first installment on the $1.75 bil- in more niche and premium export lion in compensation for these two We design it. markets. Supply Management 2.0 We build it. agreements, but since then there comprises four steps: | YOU get results. have been no developments. Create a voluntary program for The Canadian government went dairy farmers to exit the industry. on to ratify a third trade agreement Together, let’s do this! Specifically, under this step, the harming its domestic dairy indus- federal government would initiate try — the US-Mexico-Canada a voluntary quota buyback program Agreement (USMCA), known in of equal value to the concessions Canada as the Canada-US-Mexico made to foreign competition in Agreement (CUSMA) — and no recent trade deals. By agreeing to details have been shared as to the exit, farmers would be fully com- amount or the timelines for com- pensated for their quota and their pensation for that agreement, DFC livelihood. Meanwhile, as the For two decades, we have successfully completed projects while stated. report’s authors see it, only the adapting and delivering solutions to our valued customers. And “By 2024, as a result of trade most competitive farmers would while we have competitors who offer similar services and concessions, some 18 percent of remain, giving a direct boost to equipment, nobody in the industry cares as much about their our domestic milk production will Canada’s ability to compete with customers as we do here, at Advanced Process Technologies. be outsourced to dairy farmers in these new foreign suppliers. other countries at a time when Make significant changes to APT has the capabilities to work with customers from conception Canadians are more aware than the Canadian Dairy Commission ever of the importance of ensuring to completion. We have the talent, size and experience to provide (CDC). The current milk pric- our customers with customized solutions. For milk, cheese, whey our own food security,” said Pierre ing quota is set by the CDC in and specialized dairy products we offer local innovation based on Lampron, DFC’s president. “By not cooperation with the provincial our knowledge of North American regulatory requirements. following through on its commit- milk marketing boards as voting ment, the government is under- members of the Canadian Milk mining its own dairy sector which Supply Management Committee seems counterintuitive.” (CMSMC). DFC is calling on the govern- The report’s authors believe the . ment to immediately announce one element that should determine the payment schedule and related price is the impetus of dairy farmers amounts for the balance of com- to meet the demands of consum- ADVANCED PROCESS TECHNOLOGIES, INC. pensation owed for CETA and the ers by considering nutritional value Engineering | Fabrication | Controls | Installation CPTPP, and announce a timeline and affordability at retail. Also, the and level of compensation to fulfill industry, by applying different pric- www.APT-INC.com | An Employee Owned Company its commitment on CUSMA, in ing formulas, should incentivize the form of direct payments. farmers and processors to region- For more information, visit www.APT-Inc.com October 23, 2020 CHEESE REPORTER Page 8

Former President Of issue any formal communication to PERSONNEL inform customers about the poten- USDA Seeks New Blue Bell Creameries tial Listeria contamination. The indictment, returned Tues- Gaetano Auricchio Members For Ag Charged With Wire day in US District Court for the Re-elected As Chair Trade Advisory Fraud, Conspiracy Western District of Texas further alleges that March 2015 tests con- Of IDDBA; Officers Panels, Nominations Austin, TX—A Texas grand jury ducted by the US Food and Drug has charged the former president Administration (FDA) and the Tapped For 2020-21 For NACMCF of Blue Bell Creameries L.P. with Centers for Disease Control and Madison—Gaetano Auricchio, Washington—The US Depart- wire fraud and conspiracy in con- Prevention (CDC) linked the executive vice president of Bel- ment of Agriculture (USDA) nection with an alleged scheme strain of Listeria in one of the Gioioso Cheese, Inc., will resume and the Office of the US Trade to cover up the company’s sales of Blue Bell ice cream products to a his role as board chairman of the Representative (USTR) are Listeria-tainted ice cream in 2015, strain that sickened five patients International Dairy Deli Bakery accepting applications through the US Department of Justice at a Kansas hospital with liste- Association (IDDBA). Friday, Nov. 13, for new mem- (USDOJ) announced Wednesday. riosis. FDA, CDC, and Blue Bell IDDBA held its virtual annual bers to serve on seven agricul- In an indictment filed in fed- issued public recall notifications business meeting Monday, elect- tural trade advisory committees. eral court in Austin, TX, former on March 13, 2015. ing officers and board members Members of the Agricul- Blue Bell president Paul Kruse was Subsequent tests confirmed for 2020-21. Officers include: tural Policy Advisory Commit- charged with seven counts of wire Listeria contamination in a prod- executive vice chairman, Dotty tee (APAC) advise USDA and fraud and conspiracy to commit uct made at another Blue Bell VanderMolen, Advantage Solu- USTR on operating existing US wire fraud related to his alleged facility in Broken Arrow, OK, tions; vice chairman, Dominique trade agreements, on negotiating efforts to conceal from customers which resulted in a second recall Delugeau, Saputo Cheese USA new agreements, and on other what the company knew about announcement on Mar. 23, 2015. Inc.; second vice chairman, Peter trade policy matters. Listeria contamination in certain Additional positive test results Sirgy, Reser’s Fine Foods, Inc.; Members of six Agricultural Blue Bell products. ultimately led Blue Bell to recall treasurer, Carmela Serebryany, Technical Advisory Commit- The indictment filed against all ice cream products in April Upper Crust Ltd.; and immediate tees (ATACs) provide technical Kruse merely alleges that crimes 2015. past-chairman, industry consul- advice and guidance on inter- have been committed. All defen- Blue Bell pleaded guilty in a tant Rick Findlay. national trade issues that affect dants are presumed innocent until related case in May to two counts Other industry leaders elected both domestic and foreign pro- proven guilty beyond a reasonable of distributing adulterated food to serve three-year terms on the duction in commodity sectors, doubt, the USDOJ pointed out. products in violation of the Federal International Dairy Deli Bakery including animals and animal According to the indictment, Food, Drug, and Cosmetic Act. Association board are: Alvino products, and processed foods. Texas state officials notified On Sept. 17, 2020, the court Battistoni, Rich Products Corpo- To be considered for can- Blue Bell in February 2015 that sentenced the company to pay ration; Suzanne Fanning, Dairy didacy, applicants must have two ice cream products from the criminal penalties totaling $17.25 Farmers of Wisconsin (DFW); significant expertise in both agri- company’s Brenham, TX, factory million. Heather Iafrate, Norseland Inc.; culture and international trade tested positive for Listeria mono- Blue Bell also agreed to pay an Jennifer Johnson, Hormel Foods matters. Committee members, cytogenes. Kruse allegedly orches- additional $2.1 million to resolve Corporation; Tom LaRochelle, who serve four-year terms, rep- trated a scheme to deceive certain civil False Claims Act allegations Lactalis American Group; Peter resent a cross-section of US food Blue Bell customers, including by regarding ice cream products man- Sirgy, Reser’s Fine Foods, Inc.; and agricultural stakeholders. directing employees to remove ufactured under insanitary condi- and Jerry Suter, Weston Foods, Application instructions are potentially contaminated products tions and sold to federal facilities, Inc. available at www.fas.usda.gov/ from store freezers without noti- including the military. Leaving the board are John trade-advisory-committees-apply- fying retailers or consumers about Blue Bell temporarily closed Wellenzohn and Erik Water- ing-membership. Applications the real reason for the withdrawal. all of its plants in late April 2015 kotte. Wellenzon served for the received after the Nov. 13 dead- The indictment alleges that to clean and update its facilities. past nine years, completing all line will be considered for future Kruse directed employees to tell Since reopening its facilities in late three possible three-year terms. appointments as appropriate. customers who asked about the 2015, Blue Bell has taken signifi- Waterkotte served on the board Meanwhile, USDA’s Food removal that there was an unspec- cant steps to enhance sanitation for 11 years, including serving as Safety and Inspection Service ified issue with a manufacturing processes and enact a program to chairman in 2018. (FSIS) is soliciting nominations, machine. The company did not test products for Listeria prior to by Nov. 9, 2020, for membership immediately recall the products or shipment, the USDOJ noted. JUDITH SANSONE will join on the National Advisory Com- Sysco Corporation in the newly- mittee on Microbiological Crite- created role of executive vice ria for Foods (NACMCF). president and chief commercial There are nine vacancies, officer, effective Oct. 26, 2020. FSIS noted. Committee mem- Sansone will lead Sysco’s overall bers serve a two-year term that commercial strategies, including may be renewed for two addi- responsibility for merchandising, tional consecutive terms, at the marketing, pricing, digital sales discretion of the US secretary of enablement, customer loyalty agriculture. program development, customer The NACMCF was estab- personalization and new chan- lished in 1988, and provides nel sales development. She will scientific advice and recommen- also work with Sysco’s field-based dations to the secretary of agri- sales organization to acquire new culture and secretary of health business and increase sales with and human services concerning existing customers. Sansone has the development of microbiolog- over 30 years of retail indus- ical criteria by which the safety try experience, most recently and wholesomeness of food can TRUSTED SOLUTIONS working as chief merchandis- be assessed. Since 1849, we’ve been trusted to design and build stainless steel cheese making equipment and drainage products that are engineered to stand ing officer with CVS Health. USDA is seeking NACMCF up to real-world tests. From large-scale industrial systems, to niche Sysco also announced today that nominees with scientific exper- applications, we have the experience and expertise to get the job done. MICHAEL FOSTER will be tise in the fields of microbiology, stepping down from his position epidemiology, food technology, as executive vice president and risk assessment and other related 920.261.4112 uselEquipment.com Sales@ uselEquipment.com chief information and technology sciences. Nominations are being officer, effective Dec. 31, 2020, to sought from persons in industry, pursue other opportunities. academia and government. For more information, visit www.kuselequipment.com October 23, 2020 CHEESE REPORTER Page 9

Foremost Farms New Michigan Plant (Class IV utilization was 15.9 per- to our family farmer-owners here (Continued from p. 1) cent). and across the country,” said Den- To Sell Preston, “We are very pleased to reach nis Rodenbaugh, executive vice 18.9 billion pounds in 2019, the this important milestone on our president and president of coun- MN, Dairy Plant volume of Class I milk only grew journey to deliver a new ultramod- cil operations and ingredients at To Diversified by 52.1 million pounds, from 6.51 ern dairy facility in Michigan for DFA. billion pounds in 2010 to 6.56 bil- our customers,” said Brian Phelan, Glanbia Nutritionals, DFA and Ingredients lion pounds in 2019. CEO of Glanbia Nutritionals. “As Select Milk are partners in another Baraboo, WI—Foremost Farms Class III volume didn’t grow we enter this key commissioning joint venture, Southwest Cheese, USA and Diversified Ingredients much during that period, either, phase and begin production at the located in Clovis, NM, and this week announced that Fore- rising only from 5.88 billion plant, I would like to thank the described as the largest cheese and most plans to sell its manufactur- pounds in 2010 to just under 6 bil- entire Glanbia Nutritionals team, whey manufacturing facility in the ing facility in Preston, MN, to lion pounds in 2019. and in particular the onsite team, world. Southwest Cheese opened Diversified Ingredients. However, significant volumes of whose expertise and focus have in 2005, and recently underwent The final closing on the sale is Class III milk were depooled last kept the project on track and on a $130 million expansion to meet expected to take place on or before year, when the volume of Class III budget particularly during the chal- growing global demand for dairy Nov. 18, 2020. milk ranged from a high of 646.7 lenges of the last seven months. products. The new entity will be called million pounds in June to a low of “In addition, I would like to “This partnership began two Preston Protein Products and will 248.4 million pounds in Novem- thank the state and city authori- decades ago with the creation of be a joint venture between Diver- ber. ties for their continued support the Southwest Cheese JV by bring- sified Ingredients and Johnson Class II volume also grew over and of course our great partners, ing dairy farmers, processors and Farms, Inc., Lime Springs, IA. the last decade, from 2.5 billion DFA and Select Milk Producers,” local communities together to Built in 1924, the Preston plant pounds in 2010 to 3.4 billion Phelan added. achieve beneficial results for all,” offers milk separation, condens- pounds in 2019. But Class IV vol- “We are excited about this said Rance Miles, CEO of Select ing and drying services for organic ume grew the most substantially, important milestone in the opera- Milk Producers. “This new facil- dairy fluid and ingredient market- from 1.1 billion pounds in 2010 tion, which not only will play a ity in Michigan under the same ers. (Class IV utilization was 6.9 per- critical role in the dairy industry JV partnership is a continuation of Foremost Farms said it primar- cent) to 3.0 billion pounds in 2019 in Michigan, but will bring value that success.” ily focuses its whey products on the infant formula markets. The Preston plant, which is Foremost’s only Minnesota plant, is not set up to meet the demanding require- ments of this customer base, the announcement noted. Preston is best suited to serve smaller market segments, such as organic, as well EnsureEnsure youryour as to manufacture specialized prod- ucts that require smaller volumes. cheese is “Manufacturing footprints con- cheese is tinually evolve and change,” noted Greg Schlafer, Foremost’s president labellabel friendlyfriendly and CEO. “While it’s difficult to see employees leave the coopera- tive, an owner focused on building withwith on Preston’s established capabili- ties offers the best opportunity for the plant and its workers.” Foremost invested in the plant three years ago, updating the dryer. “It was the right decision at the time. Today, it gives the plant a base to build a future as a viable specialty drying operation with A new innovation in anti-cake technology for shredded, cubed Diversified Ingredients,” Schlafer continued. and crumbled cheeses. “Foremost Farms and Johnson FloAm Dairy® improves the ef ciency of your cheese production and Farms have been valued partners of Diversified Ingredients for over 30 increases shelf life of your products with the added bene ts of: years,” said Matthew Collins, man- • Natural, dairy-based, non-GMO, label-friendly ingredients aging partner, Diversified Ingredi- • Excellent ow and low-dust characteristics ents. “We are excited about this new chapter of our relationship • Non-browning in oven melt performance and look forward to expanding our • Flexible application levels tailored to meet unique quality services into the many specialty needs vs. limits of traditional anti-cake markets we service with the dry- ing, separation, and blending capa- • Broad functional capabilities – anti-mold, oxygen scavenging bilities that this facility offers. and customized blends “The Preston manufacturing facility has a long history of manu- facturing quality dairy products. ® We look forward to continuing Keep your label clean and your products fresh with FloAm Dairy . this tradition and working with Contact your Allied Blending representative today. the excellent team that has been established,” Collins added.

Established in 1987 and head- Level 2 Certified quartered in Ballwin, MO, Diversi- fied Ingredients provides products ©2018 Allied Blending LP 1-800-758-4080 • www.alliedblending.com All rights reserved. and services to the food ingredient, pet food and feed industries. For more information, visit www.alliedblending.com Page 10 CHEESE REPORTER October 23, 2020

USDEC Opens US In 2019, the region was the second FDA Launching gators more efficiently determine largest destination for US dairy by (Continued from p. 1) whether importers and receiving Center For Dairy volume (457,000 metric tons) after facilities are in compliance with Mexico, with an export value of of reliable audit data in risk-priori- the FSMA supplier verification Excellence In $928 million. tization for FDA regulatory activi- requirements, the agency noted. Singapore US dairy exports to Southeast ties, for example, with respect to As part of the pilot, FDA plans Asia grew in value by $242 mil- inspections of both imported and to select and assess up to five Singapore—The US Dairy Export lion from 2017 to 2019 and are on domestically produced foods. third-party food safety standards Council (USDEC) this week track to finish 2020 with record Under the pilot program, FDA for alignment with the require- opened an overseas facility for the high value, according to USDEC. will assess third-party food safety ments in the preventive controls first time in its 25-year history, Southeast Asia is on pace this year standards for alignment with cer- for human food and/or produce unveiling a facility in Singapore to be the top market for US dairy tain FDA food safety regulations. safety rules. with enhanced resources and inno- exports by volume. Knowing that these third-party The pilot will evaluate the vative programming to accelerate “The US Center for Dairy standards align with certain FDA resources required to review and market development for US dairy Excellence creates an education food safety regulations would give assess third-party standards for in Southeast Asia. hub and meeting place where rela- those relying on audits conducted alignment with those rules, the The US Center for Dairy Excel- tionships can be developed and to those standards confidence that ability of the pilot participants to lence represents a gateway for col- strengthened, where we can share they are meeting certain FDA provide adequate information to laboration between the US dairy market intelligence and insights, requirements for supplier verifica- enable FDA to make a determi- community and Southeast Asia’s spark ideation, lead research, and tion audits, the agency said. nation of alignment, and whether food and beverage stakeholders, share the remarkable story of US The pilot will enable FDA to FDA audit comparison templates, the culinary community, health dairy’s sustainable production” said gain information and experience available at FDA.gov, are helpful professionals and other partners, Tom Vilsack, USDEC’s president that will allow the agency to evalu- in making determinations. USDEC noted. The center’s focus and CEO. ate the resources and tools required Alignment determinations is on inspiring regionally tailored The US Center for Dairy Excel- to conduct alignment reviews. would give those relying on audits nutrition and innovation solutions lence features a state-of-the-art Buyers and others in the food conducted to those standards with US dairy ingredients and demonstration kitchen, sensory supply chain often use third-party confidence that they are meeting cheeses. evaluation lab, meeting and train- audits to assess the quality and certain requirements for supplier Demand for the US dairy indus- ing rooms and video broadcast- safety of a product. Buyers, such as verification audits. In addition, try’s growing portfolio of dairy ing capabilities. While pandemic importers and receiving facilities, the pilot will enable FDA to gain products has steadily climbed in social distancing guidelines will might stipulate an audit as part of information and experience that Southeast Asia in recent years as constrain the ability to host guests a purchase agreement. will allow the agency to evaluate customers have come to appreciate in person until next year, virtual In addition, three FSMA regula- the resources and tools required to the variety and versatility of US programming from the US CDE tions — the preventive controls conduct alignment reviews. cheese and dairy ingredients, such will commence Nov. 18 with an for human food rule preventive The pilot will be conducted over as milk powders, dairy protein, lac- online seminar on “Healthy Active controls for animal food rule, and the course of one year. To allow for tose and permeate, USDEC said. Aging with US Dairy Proteins.” Foreign Supplier Verification Pro- adequate time for FDA to assess grams (FSVP) rule — allow for the standards during the pilot third-party audits to be used as sup- period, FDA is asking members plier verification activities. of the public, including owners of FDA said it understands that third-party food safety standards, determinations that third-party to submit their requests to partici- audit standards align with the pate by 30 days after the date of FSMA regulations could provide publication in the Federal Register, importers and receiving facilities which is scheduled for Oct. 26. with confidence that the standards FDA is encouraging electronic used to audit their suppliers ade- submission of these requests quately consider FDA’s food safety through emails sent to: Standard- requirements. [email protected]. More In addition, alignment determi- information is available at www. At H&C we are constantly nations could help FDA’s investi- fda.gov. developing solutions to enhance efficiency and drive growth Superior Solutions ENCLOSURES CONTROL CABINETS, JUNCTION BOXES,  Standard size junction boxes ELECTRICAL or custom enclosures  Fabricated to NEMA Standard ENCLOSURES  Constructed from 12, 14 or 16 gauge  .125 aluminum, stainless or mild steel sub panels  Holes and cutouts per customer specs Our solutions offer Reduced work injuries  Optional sloped-top provides enhanced return Increased running times increased sanitation Increased product quality on investment and Reduced wastage  Piano-hinged or Tear-drop hinged doors operational efficiency: AWI MANUFACTURING Smaller footprint E: [email protected] www.awimfg.com E: [email protected]: 888.272.2600 US Toll Free 800-351-1745 NZ Phone +64 6 872 7140 Wwww.awimfg.cominsted, MN 55395 Email [email protected] Tel: 888.272.2600 Winsted, MN 55395 For more information, visit www.hadencustance.com For more information, visit www.awimfg.com October 23, 2020 CHEESE REPORTER Page 11

Associated Milk Producers, FDA Seeks Info On Sugars That Are Metabolized USDA Awards Inc.: 25,785,600 pounds of 500- Differently Than Traditional Sugars Contracts For 64.2 pound barrels at a differential price of 20.0 to 26.978 cents per pound. Silver Spring, MD—The US Food ditionally known as sugars, FDA Million Pounds Of Bongards’ Creameries: and Drug Administration (FDA) is noted. Some sugars (e.g., allulose 1,142,400 pounds of 40-pound establishing a docket and is invit- or D-tagatose) do not have all of American Cheese For Cheddar blocks at a differential ing comments on and information the same effects in the body as tra- price of 13.90 to 21.0 cents per about the nutrition labeling of sug- ditional sugars. 2021 Delivery pound. ars that are metabolized differently FDA said it has received mul- Washington—USDA’s Agricul- Great Lakes Cheese: 576,000 than traditional sugars. tiple requests from industry to treat tural Marketing Service (AMS) pounds of reduced fat shredded FDA said it is taking this action these sugars that are metabolized on Tuesday announced the award- Cheddar cheese at a differential to inform its regulatory approach to differently than traditional sugars ing of contracts to eight companies price of 27.75 to 35.17 cents per these distinctly metabolized sugars as distinct from traditional sugars for a total of 64,178,400 pounds of pound; and 2,764,800 pounds of to promote the public health and for purposes of nutrition labeling. natural American cheese for deliv- shredded Cheddar cheese at a dif- help consumers make informed For example, some asked that FDA ery in 2021. ferential price of 25.25 to 30.0 dietary decisions. exempt certain sugars from inclu- The purchases include 52,387,200 In a final rule issued in May sion as a carbohydrate, sugar, or pounds of natural American cheese cents per pound. 2016, FDA revised the Nutrition added sugar on the Nutrition Facts in barrels, 1,999,200 pounds of Hilmar Cheese Company: Facts label by, among other things, label for foods and beverages. Cheddar blocks, 5,529,600 pounds 22,276,800 pounds of 500-pound requiring the declaration of the FDA is inviting comment on of reduced fat shredded Cheddar, barrels at a differential price of gram amount of “Added Sugars” in several topics, including the dec- and 4,262,400 pounds of shredded 21.0 to 23.50 cents per pound. a serving of a product, and chang- laration of total sugars, declaration Cheddar. Land O’Lakes: 571,200 pounds ing “Sugars” to “Total Sugars.” The of added sugars, and label declara- Contracts were awarded as fol- of 40-pound Cheddar blocks at a agency confirmed that its defini- tions. Comments are due by Dec. lows; the purchase price for each differential price of 19.30 to 21.0 tion of “Total Sugars” remains the 18, 2020, and may be submitted delivery period is the accepted dif- cents per pound. same as before; specifically, as the at www.regulations.gov. The docket ferential price per pound indicated Masters Gallery Foods: sum of all free mono- and disac- number is FDA-2020-N-1359. plus the applicable previous week’s 4,324,800 pounds of 500-pound charides (such as lactose, glucose, In a related news, FDA CME cash market price: barrels at a differential price of fructose, and sucrose). announced the availability of Agropur Inc.: 806,400 pounds 21.27 to 29.40 cents per pound; FDA defined “Added Sugars,” a final guidance for the industry of reduced fat shredded Cheddar at 4,147,200 pounds of shredded in part, as sugars that are either entitled “The Declaration of Allulose a differential price of 27.05 cents reduced fat Cheddar at a differen- added during the processing of and Calories from Allulose on Nutri- per pound; 1,075,200 pounds of tial price of 19.99 to 28.50 cents foods or are packaged as such. tion and Supplement Facts Labels.” shredded Cheddar at a differen- per pound; and 38,400 pounds of The agency said it is aware that The guidance provides FDA’s tial price of 26.75 to 28.55 cents shredded Cheddar at a differential some members of the food industry current view on the declaration of per pound; and 285,600 pounds of price of 23.41 to 29.36 cents per. are looking for ways to reformulate allulose on Nutrition and Supple- 40-pound Cheddar blocks at a dif- Winona Foods: 384,000 pounds products to reduce the sugar con- ment Facts labels, as well as on the ferential price of 15.05 cents per of shredded Cheddar at a differen- tent while still providing products caloric content of allulose. pound. tial price of 31.48 cents per pound. that meet consumer preferences. The guidance also advises food The use of sugars that provide and beverage manufacturers of fewer calories, that are not associ- FDA’s intent to exercise enforce- ated with dental caries, and that ment discretion for the exclusion result in a lower glycemic and insu- of allulose from the amount of linemic response than other sugars “Total Sugars” and “Added Sugars” could be one way for industry to declared on the label and the use provide products that meet both of a general factor of 0.4 calories MOVE IT. current dietary recommendations per gram for allulose when deter- and consumer preferences. mining “Calories” on the Nutri- There are several sugars that tion and Supplement Facts labels are not metabolized by the body pending review of the issues in a PACK IT. like other substances that are tra- rulemaking. Is It Time To Sell STACK IT. Your Dairy Business? RELCO ® POWDER HANDLING & PACKAGING SOLUTIONS

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CPage 12 OMPANY NEWSCHEESE REPORTER October 23, 2020 We look at cheese differently.

www.cheesereporter.com/events.htm

SUPPLIER NEWS ...because we don’t just Winter Fancy Food Show Scrapped; see cheese, we see the Virtual Show Planned For Jan. 19-22 whole picture. 1.866.404.4545 www.devilletechnologies.com San Francisco, CA—Travel conduct business and put specialty Cheese Reporter Ad.indd 1 2018-01-03 11:52 PM restrictions and continued health food on store shelves, safely and safety concerns surrounding Covid- economically. The January event Registration Opens PLANNING GUIDE 19 have prompted the Specialty will also include new educational For DBIA Web Series Oct. 25-28: Virtual Event - Food Association (SFA) to cancel programs, virtual networking NMPF, UDIA, NDB Joint Annual its 46th annual Winter Fancy Food events, and a new “Virtual Product On Business Startup Conference. For updates, visit Show. Tasting Experience.” Madison—The Dairy Business www.nmpf.org. The event was slated to take This element allows buyers to Innovation Alliance (DBIA) has • place here Jan. 17-19, 2021 at sample pre-delivered specialty food kicked off registration for a series Oct. 26-28: New Format - IAFP the Moscone Convention Center, products while listening to mak- of free webinars on how to launch 2020 Virtual Conference. Visit which is currently closed. ers describe them. The January a dairy business. www.foodprotection.org for In the effort to keep members edition will likewise feature SFA’s The first webinar is Tuesday, registration and more details. both safe and engaged, SFA will Incubator Village and Interna- Oct. 27, and will cover the basics • host a virtual Specialty Food Live! tional Pavilions. of starting a business. Future online Jan. 19-22, 2021: New Date & event Jan. 19-22, 2021. SFA’s priority now is to pro- classes will cover how to access Format - Specialty Food Live! “We’re excited about our new vide an efficient process for par- market information, product devel- Virtual Show. More information series of virtual events,” said SFA ticipants to receive a credit or opment, regulatory requirements, available online at www.special- president Bill Lynch. refund for their Winter Fancy Food food safety, economic development “We received great feedback Show exhibit space. This can be and how to export dairy products. tyfood.com. from the September launch, accomplished online at www.spe- The classes will run through Jan. • including a request from buyers cialtyfood.com/shows-events/winter- 19, 2021. Jan. 25-28, 2021: New Virtual and makers during the event that fancy-food-show/refund-center. They will also be recorded and Format - Dairy Forum, Virtual we extend it by one day, which we More information on Specialty available online. For information, visit www.idfa. happily did,” Lynch continued. Food Live! 2021, including regis- To sign up for the free webinar org. The all-inclusive, digital mar- tration, is also available online at series, visit www.turbo.cdr.wisc.edu/ • ket allows members and buyers to www.specialtyfood.com. dairy-business-innovation-alliance. Feb. 1-5- New Date: PLMA Private Label Week Virtual extend shelf-life. The session ends Meeting. For more details and Registration Opens For Dairy Practices with a moderated panel discussion registration information, visit Council Online Meeting Set For Nov. 4-6 featuring Kathleen Glass, associate www.plma.com. director, Food Research Institute; • Pandora, OH—Dairy professionals Foods Association (IDFA), will Kevin Keener, professor of engi- Feb. 17-19, 2021: World Cham- across the industry are encouraged share perspectives on regulatory neering, University of Guelph; pionship Cheese Contest, Wis- to register for the Dairy Practices and food safety initiatives, along and Chad Galer, vice president of consin Center, Milwaukee, WI. Council (DPC) annual confer- with emerging science and tech- product research and food safety, Visit www.worldchampion- ence, planned for Nov. 4-6 in a nologies affecting the dairy sector. Innovation Center for US Dairy. cheese.org. virtual setting. Thursday’s lineup begins with a The DPC annual business meet- • The meeting will focus on how task force session on farm build- ing will take place from noon to 2 April 6-8: CheeseExpo, Mil- the US dairy industry is poised for ings and equipment; milking sys- p.m. Attendees will celebrate the waukee Center, Milwaukee, WI. the coming year, with considerable tems and procedures; on-farm accomplishments of 2020, unveil Details available soon at www. attention on consumer behavior, milk cooling; and storage/controls. its new website, and recognize regulatory issues, sustainability and Guest speakers include Paul Muel- volunteers through the Eugene T. cheeseexpo.org. product safety. ler Company representatives Chris Wolff award, Guideline Author • The three-day meeting kicks off Ancipink, Mike Kelley, and Rick acknowledgements and Honorary April 25-27: ADPI/ABI Joint Wednesday morning with keynote McClenning. Lifetime Membership inductees. Annual Conference, Hyatt speaker Rachel Kyllo, senior vice A second session on plant Starting next month, DPC will Regency Downtown, Chicago, president, marketing and innova- equipment and procedures, regu- also offer a virtual workshop on IL. Visit www.adpi.org. tion, for Dairy Farmers of America latory issues, HACCP and food automated milking systems ideally • (DFA) Dairy Brands. Kyllo will defense will be led by food safety suited for dairy producers, veteri- June 6-8: IDDBA 2021, George share insights on changing con- consultant Marie Limoges of Sani- narians, milk inspectors, regulatory R. Brown Convention Center, sumer behavior during COVID-19 tary Design Industries. personnel, milking equipment pro- Houston, TX. For registration and how these changes impact the The third session will cover viders and milk quality consultants and show information, visit dairy industry moving forward. laboratory and quality control interested in AMS installations www.iddba.org. Wednesday afternoon will fea- procedures, and testing supply and operations. ture Jamie Jonker, vice president of technologies for environmental Participants will receive a link • sustainability and scientific affairs monitoring led by Cari Lingle and for four hours of virtual instruction July 29-31: 38th Annual Ameri- for the National Milk Producers Luke Thevenet, 3M Food Safety. on AMS best practices and key can Cheese Society Conference Federation (NMPF). Jonker will The final day of the conference considerations related to engineer- & Competition, Des Moines, provide updates related to current will feature DPC’s first technical ing, regulatory requirements, and IA. For more information, visit on-farm initiatives and shed light session in partnership with the operations to maintain milk qual- www.cheesesociety.org. on what next year will look like in Innovation Center for US Dairy. ity. Participants will also receive a • terms of both animal and environ- Emerging research topics to be dis- link to a virtual “office hour” ses- Aug. 12-13: Idaho Milk Proces- mental health. cussed include controlling Listeria; sion with instructors on Nov. 19. sors Association Annual Meet- Joe Scimeca, senior vice presi- efficacy of antimicrobials, protec- For registration details on the ing, Sun Valley, ID. Visit www. dent of regulatory and scientific tive cultures, hydrogen peroxide, conference and workshop, visit impa.us. affairs for the International Dairy and cold plasma technology to www.dairypc.org. October 23, 2020 CHEESE REPORTER Page 13

ld's Dairy I or nd W u st CLASSIFIED ADVERTISING e r h y t W g phone: (608) 246-8430 fax: (608) 246-8431

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k v Since 1876

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e y e-mail: [email protected] S MARKET PLACE

The “Industry’s” Market Place for Products, Services, Equipment and Supplies, Real Estate and Employee Recruitment

Classified Advertisements should be placed 4. Interleave Paper, Wrapping 12. Conversion Services by Thursday for the Friday issue. Classified ads charged at $0.75 per word. Display Classified SPECIALTY PAPER MANUFACTURER LANCASTER CHEESE SOLUTIONS: advertisements charged at per column inch specializing in cheese interleave paper, A Cheese Conversion Company. rate. For more information, call 608-316-3792 butter wrap, box liners, and other cus- Blocks or bars from 5 ounce to 10 or email [email protected] tom coated and wax paper products. pound. Located in southeast Pennsyl- Made in USA. Call Melissa at BPM Inc., vania. Call with your requests. (717) 715-582-5253 or visit www.bpmpaper. 351-0046 1. Equipment for Sale 1. Equipment for Sale com. 13. Warehousing EQUIPMENT FOR SALE: Cryovac WESTFALIA SEPARATORS: New 5. Cheese Moulds, Hoops Rotary Chamber Vac. Model 8610-14. arrivals! Great condition. Model num- COLD STORAGE SPACE AVAIL- 4 chambers with 14” dual seal wire set- ber 418. Call GREAT LAKES SEPA- WILSON HOOPS: NEW! 20 and 40 ABLE: Sugar River Cold Storage in pound hoops available. Contact KUSEL up. Chamber product size is 12”x14” RATORS at (920) 863-3306 or e-mail Monticello, WI. has space available in EQUIPMENT CO. at (920) 261-4112 or or 6”x18”. Machine is 460 volt 3 phase. [email protected]. it’s refrigerated buildings. Temp’s are [email protected]. Completely refurbished. Call 608-437- 36, 35 and 33 degrees. We are SQF 2. Equipment Wanted 5598 x 2344 or email: akosharek@ 7. Walls & Ceiling Certified and work with your schedule. dairyfoodusa.com WANTED TO BUY: Westfalia or Alfa- Contact Eric at 608-938-1377 or visit EXTRUTECH PLASTICS NEW! Anti- FOR SALE: 1500 and 1250 cream Laval separators. Large or small. Old or our website sugarrivercoldstorage. microbial POLY BOARD-AM sanitary tanks. Like New. (800) 558-0112. (262) new. Top dollar paid. Call Great Lakes com. panels provide non-porous, easily 473-3530. Separators at (920) 863-3306 or email [email protected] cleanable, bright white surfaces, perfect 14. Consultants SOLD: ALFA-LAVAL SEPARATOR: for incidental food contact applications. Model MRPX 518 HGV hermetic sepa- 3. Products, Services CFIA and USDA accepted, and Class SQF CONSULTANT + IMPLEMENTATION ASSISTANT: Do rator. JUST ADDED: ALFA-LAVAL A for smoke and flame. Call Extrutech FOR SALE: Unique Corrugated Cow you wish to obtain SQF Certification SEPARATOR: Model MRPX 718. Plastics at 888-818-0118 or www.epi- Print Gift Boxes for the Holidays for your facility? Could you benefit from Call Dave Lambert at Great Lakes plastics.com for more information. or year-round Regular Cow Print. the use of a local, industry experienced Separators at (920) 863-3306 or Various sizes available from Dairyland SQF Consultant? I have assisted many e-mail [email protected]. 8. Real Estate Packaging. Please e-mail: djensen@ small and mid-sized cheese manufac- FOR SALE: Car load of 300-400-500 dairylandpackaging.com or call (608) DAIRY PLANTS FOR SALE: turers, cold storage warehouses, and late model open top milk tanks. Like 798-2247. Check out our website: www. http://dairyassets.webs.com/acqui- ingredient brokers in Wisconsin and new. (262) 473-3530 dairylandpackaging.com. We are sitions-mergers-other. Contact Jim Illinois to achieve their SQF Certifica- your source for all packaging needs. at 608-835-7705; or by email at jim- tion, and I want to help you too. I can SEPARATOR NEEDS - Before you buy [email protected] navigate the process, provide various a separator, give Great Lakes a call. 4. Interleave Paper, Wrapping templates, training, and personalized TOP QUALITY, reconditioned machines 9. Promotion & Placement guidance to make the process easier. at the lowest prices. Call Dave Lam- I am based out of Madison, WI. Call PROMOTE YOURSELF - By contact- bert, GREAT LAKES SEPARATORS at Brandis Wasvick at 651-271-0822 or ing Tom Sloan & Associates. Job (920) 863-3306; [email protected] Wisconsin's enhancement thru results oriented Email: bluecompasscompliance@ for more information. Finest Cheese professionals. We place cheese mak- gmail.com or visit BlueCompass- Compliance.com for more informa- Your Direct Source for ers, production, technical, maintenance, all your engineering and sales management tion, testimonials, and to see how you cheese needs! people. Contact Dairy Specialist David and I can get started today. BRANDIS Cut & Wrap Sloan, Tom Sloan or Terri Sherman. WASVICK, SQF AND FOOD SAFETY 1 lb. Chunks COMPLIANCE CONSULTANT AND 8 oz. Chunks Red Wax Wedges TOM SLOAN & ASSOCIATES, INC., Lancaster Cheese is your cut & Cream Cheese ASSISTANT wrap headquarters. IWS Slices PO Box 50, Watertown, WI 53094. 8 oz & 2 lb. Shreds Swiss Phone: (920) 261-8890 or FAX: (920)  7 standard configura�ons Baby Swiss American Slices 261-6357; or by email: tsloan@tsloan. 17. Contract Manufacturing available or bring us your American Loaves Asadaro Muenster com. Do you have dairy product making custom specs. Blocks, Prints capacity or size reduction and conver-  Volume discounts Serving: 10. Cheese & Dairy Products Retail, Foodservice, Delis sion space available? Call Cheese  Short lead �mes Warehouses in Texas & Wisconsin KEYS MANUFACTURING: Dehydra- Reporter at 608-246-8430 or emailing  Located on the eastern shore for convenient pick-ups tors of scrap cheese for the animal feed [email protected]. Contact Justin Call for Competititve Pricing industry. Contact us for your scrap at LANCASTER Jamey Williams (217) 465-4001 or email keysmfg@aol. Cheese Solutions at 972-422-5667 com. Gasket Material 717-268-4544 jamey@wisconsinsfinest.com for the or [email protected] PNEUMATIC HAMMER Dairy Industry Removes Powder Deposits A New Product that is officially while maintaining the integrity accepted* Western Repack of your powder processing equipment. for use in Dairy We Purchase Fines and Downgraded Cheese Plants inspected by the USDA under the Dairy Reclamation Services Plant Survey Program. • Cheese Salvage/Repacking • 640# Block Cutting TC Strainer Gasket *USDA Project Number 13377

► Impact provides enough vibration to Handling cheese both as a remove powder deposits ► Maintains product flow by dislodging service and on purchase. blockages ► Special mount and short duration Bring us your special projects pulses limit fatigue on metal skins 440-953-8811TC Strainer Gasket [email protected] Western Repack, LLC Evaporator Dryer Technologies, Inc. (801) 388-4861 www.evapdryertech.com www.gmigaskets.com Page 14 CHEESE REPORTER October 23, 2020

Federal Order Class 1 Minimum Prices & DAIRY FUTURES PRICES Other Advanced Prices - November 2020 SETTLING PRICE *Cash Settled

Date Month Class Class Dry Block Class I Base Price (3.5%) ...... $18.04 (cwt) III IV Whey NDM Cheese Cheese* Butter* Base Skim Milk Price for Class I ...... $12.78 (cwt) 10-16 Oct 20 21.38 13.67 34.200 107.475 2.563 2.2740 154.250 Advanced Class III Skim Milk Pricing Factor ...... $16.07 (cwt) 10-19 Oct 20 21.42 13.67 34.200 107.225 2.563 2.2730 153.600 10-20 Oct 20 21.46 13.52 34.200 107.050 2.563 2.2820 152.525 Advanced Class IV Skim Milk Pricing Factor ...... $8.00 (cwt) 10-21 Oct 20 21.48 13.52 34.200 106.525 2.563 2.2850 152.525 Advanced Butterfat Pricing Factor ...... $1.6316 (lb.) 10-22 Oct 20 21.63 13.52 34.200 106.550 2.563 2.2970 152.475 Class II Skim Milk Price ...... $8.70 (cwt) 10-16 Nov 20 20.92 14.34 34.100 114.000 2.310 2.2200 157.000 10-19 Nov 20 21.65 14.29 34.325 113.950 2.347 2.2950 157.000 Class II Nonfat Solids Price ...... $0.9667 (lb.) 10-20 Nov 20 21.49 14.07 34.250 112.000 2.420 2.2830 156.500 Two-week Product Price Averages: 10-21 Nov 20 20.91 13.80 34.025 110.500 2.385 2.2220 153.000 10-22 Nov 20 21.44 13.67 34.700 109.050 2.430 2.2720 151.500 Butter ...... $1.5188 lb. Nonfat Dry Milk ...... $1.0657 lb. 10-16 Dec 20 18.73 14.48 34.525 114.925 2.028 1.9950 159.750 Cheese ...... $2.2550 lb. 10-19 Dec 20 19.48 14.39 35.000 114.650 2.103 2.0690 160.000 10-20 Dec 20 19.34 14.04 35.250 112.250 2.103 2.0580 157.000 Cheese, US 40-pound blocks ...... $2.5663 lb. 10-21 Dec 20 18.71 13.97 34.300 110.850 2.070 2.0580 154.000 Cheese, US 500-pound barrels ...... $1.8716 lb. 10-22 Dec 20 19.41 13.73 34.800 110.475 2.095 2.0620 151.975 Dry Whey ...... $0.3428 lb. 10-16 Jan 21 17.27 14.70 34.525 116.000 1.858 1.8440 160.500 10-19 Jan 21 17.76 14.70 35.100 115.400 1.925 1.8900 160.025 10-20 Jan 21 17.59 14.39 35.250 113.150 1.925 1.8750 158.025 10-21 Jan 21 17.08 14.17 34.550 111.575 1.925 1.8210 156.000 HISTORICAL MILK PRICES - CLASS I 10-22 Jan 21 17.60 14.00 35.000 110.750 1.925 1.8700 155.000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 10-16 Feb 21 16.71 14.80 35.650 117.500 1.800 1.7720 163.000 10-19 Feb 21 16.86 14.80 36.000 117.025 1.875 1.7900 163.000 ‘15 18.58 16.24 15.56 15.50 15.83 16.14 16.53 16.25 16.34 15.84 16.48 16.71 10-20 Feb 21 16.75 14.62 36.000 114.050 1.875 1.7890 161.250 ‘16 16.04 13.64 13.78 13.74 13.70 13.14 13.70 15.07 16.56 16.60 14.78 16.88 10-21 Feb 21 16.33 14.43 35.000 113.100 1.853 1.7410 159.500 ‘17 17.45 16.73 16.90 16.05 15.20 15.31 16.59 16.72 16.71 16.44 16.41 16.88 10-22 Feb 21 16.74 14.34 35.050 112.500 1.853 1.7840 159.400 ‘18 15.44 14.25 13.36 14.10 14.44 15.25 15.36 14.15 14.85 16.33 15.52 15.05 10-16 Mar 21 16.63 15.29 35.675 118.975 1.795 1.7600 171.450 ‘19 15.12 15.30 15.98 15.76 16.42 17.07 17.18 17.89 17.85 17.84 18.14 19.33 10-19 Mar 21 16.67 15.29 35.675 118.950 1.795 1.7630 171.450 ‘20 19.01 17.55 17.46 16.64 12.95 11.42 16.56 19.78 18.44 15.20 18.04 10-20 Mar 21 16.67 15.11 36.675 116.750 1.795 1.7660 170.000 10-21 Mar 21 16.25 14.91 35.250 115.500 1.790 1.7320 166.550 10-22 Mar 21 16.57 14.75 35.250 114.000 1.790 1.7510 170.000

Dairy Product Stocks in Cold Storage 10-16 Apr 21 16.43 15.52 35.500 120.250 1.785 1.7450 176.500 TOTAL STOCKS AS REPORTED BY USDA (in thousands of pounds unless indicated) 10-19 Apr 21 16.52 15.52 35.950 119.500 1.785 1.7540 176.500 Public 10-20 Apr 21 16.48 15.32 35.475 118.450 1.785 1.7530 175.000 Stocks in All September 30, 2020 Warehouse 10-21 Apr 21 16.30 15.20 35.250 117.000 1.785 1.7370 172.000 Warehouses as a % of Stocks 10-22 Apr 21 16.50 15.10 35.250 115.000 1.785 1.7450 167.175

Sept Aug Sept Sept Aug Sept 10-16 May 21 16.54 15.70 36.125 120.775 1.785 1.7500 180.500 2019 2020 2020 2019 2020 2020 10-19 May 21 16.55 15.70 36.125 120.750 1.785 1.7600 179.900 10-20 May 21 16.51 15.65 36.125 120.000 1.785 1.7540 178.000 Butter 290,649 371,519 343,899 118 93 331,383 10-21 May 21 16.38 15.50 36.125 118.925 1.785 1.7440 174.500 Cheese 10-22 May 21 16.55 15.26 36.125 117.000 1.785 1.7550 174.025 American 774,761 789,594 772,584 100 98 10-16 June 21 16.55 15.98 36.175 122.275 1.790 1.7650 184.000 Swiss 26,392 20,602 20,762 79 101 10-19 June 21 16.59 15.98 36.175 121.625 1.790 1.7700 182.000 10-20 June 21 16.55 15.90 36.175 121.300 1.790 1.7650 179.000 Other 572,703 567,711 566,940 99 100 10-21 June 21 16.45 15.72 36.250 120.475 1.790 1.7610 176.800 Total 1,373,856 1,377,907 1,360,286 99 99 966,224 10-22 June 21 16.64 15.46 36.250 118.025 1.790 1.7640 176.800 10-16 July 21 16.72 16.10 36.250 122.750 1.789 1.7830 183.950 10-19 July 21 16.80 16.10 36.250 122.750 1.789 1.7830 183.950 $2.80 10-20 July 21 16.80 16.05 36.250 122.525 1.789 1.7810 182.025 DAIRY PRODUCT SALES 10-21 July 21 16.70 15.95 36.250 121.825 1.789 1.7700 181.350 $2.60 40-Pound 10-22 July 21 16.82 15.84 36.250 119.350 1.789 1.7710 180.000 October 21, 2020—AMS’ National Dairy $2.40 Block Avg 10-16 Aug 21 16.81 16.28 37.475 123.000 1.794 1.7820 182.625 Products Sales Report. Prices included $2.20 are provided each week by manufactur- 10-19 Aug 21 16.81 16.28 37.475 123.000 1.794 1.7820 183.100 $2.00 ers. Prices collected are for the (wholesale) 10-20 Aug 21 16.82 16.28 37.475 123.000 1.794 1.7820 182.625 10-21 Aug 21 16.72 16.18 37.025 123.000 1.794 1.7700 181.000 point of sale for natural, unaged Cheddar; $1.80 10-22 Aug 21 16.72 16.07 37.025 121.000 1.794 1.7720 180.000 boxes of butter meeting USDA standards; $1.60 Extra Grade edible dry whey; and Extra $1.40 Interest - 22,871 4,834 3,104 6,883 380 23,639 8,552 Grade and USPH Grade A nonfortified CME vs AMS Oct. 22 NFDM. $1.20

$1.00 O N D J F M A M J J A S O Week Ending Oct. 17 Oct. 10 Oct. 3 Sept. 26 CHEESE REPORTER SUBSCRIBER SERVICE CARD

40-Pound Block Cheddar Cheese Prices and Sales If changing subscription, please include your old and new address below Weighted Price Dollars/Pound Name ______US 2.6118 2.5185• 2.3639 2.1620 Title ______Sales Volume Pounds US 13,528,655 12,853,882• 13,319,060• 12,661,141 Company ______500-Pound Barrel Cheddar Cheese Prices, Sales & Moisture Contest Address ______Weighted Price Dollars/Pound City/St/Zip ______US 2.0526 1.8889 1.8098 1.7797• Adjusted to 38% Moisture New Subscriber Info E-Mail Phone ______US 1.9511 1.7904 1.7197 1.6884• Sales Volume Pounds Name ______US 11,734,489 11,501,777 11,618,633 10,086,145• Title ______Weighted Moisture Content Percent US 34.77 34.59 34.75 34.65• Company ______AA Butter Address ______Weighted Price Dollars/Pound US 1.5063 1.5327 1.5786 1.5136 City/St/Zip ______

Sales Volume Pounds Old Subscriber Info E-Mail Phone ______US 2,427,497 2,197,958 2,055,583 3,114,073 Extra Grade Dry Whey Prices TYPE OF BUSINESS: JOB FUNCTION: ___Cheese Manufacturer ___Company Management Weighted Price Dollars/Pounds ___Cheese Processor ___Plant Management US 0.3455 0.3397• 0.3380 0.3245 ___Cheese Packager ___Plant Personnel Sales Volume US 6,087,339 5,189,584• 4,839,885 6,905,415 ___Cheese Marketer(broker, distributor, retailer ___Laboratory (QC, R&D, Tech) ___Other processor (butter, cultured products) ___Packaging Extra Grade or USPHS Grade A Nonfat Dry Milk ___Whey processor ___Purchasing Average Price Dollars/Pound ___Food processing/Foodservice ___Warehouse/Distribution US 1.0734 1.0585• 1.0362• 1.0225 ___Supplier to dairy processor ___Sales/Marketing Sales Volume Pounds US 18,705,479 19873,029• 21,796,226• 22,882,038 Circle, copy and FAX to (608) 246-8431 for prompt response

October 23, 2020 CHEESE REPORTER Page 15

DAIRY PRODUCT MARKETS NATIONAL - CONVENTIONAL DAIRY PRODUCTS AS REPORTED BY THE US DEPARTMENT OF AGRICULTURE The total number of conventional ads decreased 7 percent, and organic ads decreased 25 percent. Conventional ice cream in 48- to 64-ounce containers was the most advertised dairy item. The average advertised price of conventional 1-pound butter is $3.14, compared to $5.29 WHOLESALE CHEESE MARKETS for organic 1-pound butter. A signal of the upcoming holiday season appeared in this week’s retail ad survey - the average price for egg nog in quart containers is $2.99. NATIONAL - OCT. 16: Cheese production remains active in most plants throughout the The total number of conventional cheese ads decreased 2 percent, while organic cheese ads country. Milk is balanced/available in most areas. Spot milk prices dipped below Class III increased 97 percent. The average price for conventional 8-ounce cheese shreds is $2.53, up after a couple weeks of Class or over Class prices being reported. Spot milk trading was 5 cents from last week. Organic 8-ounce cheese shreds have an average price of $3.74, up 25 slow in general. Cheese demand is reportedly consistent, with both retail and government cents from last week. The resulting organic price premium for 8-ounce cheese shreds is $1.21. bids keeping inventories in check.

The national average price for conventional milk in half-gallons is $2.66, compared to $4.22 for NORTHEAST - OCT. 21: Cheese makers are clearing strong milk loads for active pro- organic milk half-gallons. This results in an organic premium of $1.56. The total number of duction schedules. Manufacturers’ cheese supplies are balanced to growing. Many market conventional milk ads decreased 35 percent. Organic milk ad numbers decreased 2 percent. participants are interested where inventory levels will be at the end of the year. The holidays Milk in gallon containers was the most advertised organic dairy item. are right around the corner and numerous grocers are advertising cheese product varieties for holiday cooking. Cream cheese production is strong, and there are reports retailers are purchasing large orders. Foodservice sales are mixed in the region. Capacity limitations RETAIL PRICES - CONVENTIONAL DAIRY - OCTOBER 23 and shutdowns are taking a toll on the restaurant industry. There are reports food programs have extended schools’ free meals to students through the end of the school year, potentially Commodity US NE SE MID SC SW NW affecting educational institutions’ cheese and milk demands. Butter 1# 3.14 3.27 NA 3.09 2.75 3.19 2.60 Wholesale prices, delivered, dollars per/lb: Cheese 8 oz block 2.56 2.63 2.64 1.95 2.63 2.45 1.69 Cheddar 40-lb blocks: $3.1625 - $3.4500 Process 5-lb sliced: $2.2725 - $2.7525 Cheese 1# block 3.73 3.40 4.03 NA 3.48 3.37 3.37 Muenster: $3.1500 - $3.5000 Swiss Cuts 10-14 lbs: $4.1975 - $4.5200 Cheese 2# block 6.41 NA NA 6.99 6.63 5.99 5.99 MIDWEST AREA - OCT. 21: Midwestern cheese contacts report similar notes to last Cheese 8 oz shred 2.53 2.46 2.58 1.90 2.73 2.54 2.45 week across the board. Current spot prices remain close to last week, hovering around Cheese 1# shred 4.82 4.49 4.99 NA NA NA NA Class. One noted change is some customers who let their pipelines run dry are returning Cottage Cheese 1.80 2.29 1.50 1.45 2.05 1.49 2.00 to the buying fold. Production rates remain steady. Cheese makers, in recent weeks, have edged back slightly to more “normal” weekly production schedules. Cheese producers say Cream Cheese 2.33 1.90 2.73 .99 1.31 1.39 2.18 they are not trying to add to inventories in case buying slows and/or markets begin to ebb. Flavored Milk ½ gallon 2.00 2.69 NA 1.46 2.99 NA .99 Also, COVID-19 is affecting some production facilities, as employees are quarantining as Flavored Milk gallon 3.99 NA NA NA NA 3.99 NA cases continue to increase in areas of the Midwest. Regarding cheese market tones, they continue to show signs of steadiness to slight bullishness day to day and week to week. Ice Cream 48-64 oz 2.84 2.94 2.59 2.71 3.14 2.92 2.86 Milk ½ gallon 2.66 3.15 NA NA NA NA .99 Wholesale prices delivered, dollars per/lb: Milk gallon 3.68 4.04 NA NA 3.69 2.89 NA Brick 5# Loaf: $3.0775 - $3.5025 Cheddar 40# Block: $2.8000 - $3.2000 Monterey Jack 10#: $3.0525 - $3.2575 Mozzarella 5-6#: $2.8775 - $3.8225 Sour Cream 16 oz 1.62 1.89 1.26 1.36 1.92 1.71 1.79 Muenster 5# $3.0775 - $3.5025 Process 5# Loaf: $2.2575 - $2.6175 Yogurt (Greek) 4-6 oz .96 1.00 .97 .89 .93 .98 .99 Grade A Swiss 6-9#: $3.7125 - $3.8300 Blue 5# Loaf: $3.3450 - $4.4150 Yogurt (Greek) 32 oz 4.53 4.93 4.50 NA NA 3.49 NA

WEST - OCT. 21: Western cheese manufacturers are working hard to keep up with Yogurt 4-6 oz .50 .56 .50 .51 .33 .47 .42 orders. Retail demand is active as stores prepare to fill holiday cheese needs. While some Yogurt 32 oz 3.01 2.17 NA 4.66 NA NA NA industry contacts suggest foodservice orders are slowly recovering, restaurants continue to US: National Northeast (NE): CT, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VT; face the challenges of space and operational restrictions. Large volumes of cheese are mov- ing into pizza and government purchases. Current purchases have supported higher prices Southeast (SE): AL, FL, GA, MD, NC, SC, TN, VA, WV; Midwest (MID): IA, IL, IN, within the market but have hindered export sales. A few contacts suggest processors have KY, MI, MN, ND, NE, OH, SD, WI; South Central (SC): AK, CO, KS, LA, MO, NM, brought in more cheese imports to fill some processed cheese needs. Industry contacts are OK, TX; Southwest (SW): AZ, CA, NV, UT; Northwest (NW): ID, MT, OR, WA, WY speculating as to what government purchases and subsequent cheese demand will look like as some government buying may phase out at the end of the month. Currently, block inventories are tight, and to a lesser extent, so are barrel supplies. However, contacts sug- ORGANIC DAIRY - RETAIL OVERVIEW gest available cheese stocks are increasing. In some cases, buyers are pausing purchases. National Weighted Retail Avg Price: Yogurt 4-6 oz: $1.24 Butter 1 lb: $5.29 Greek Yogurt 32 oz: $3.59 Wholesale prices delivered, dollars per/lb: Cheddar 10# Cuts: $3.0375 - $3.2375 Cheese 8 oz shred: $3.74 Milk ½ gallon: $4.22 Cheddar 40# Block: $2.7900 - $3.2800 Monterey Jack 10#: $3.0250 - $3.3000 Cheese 8 oz block: NA Milk gallon: $5.10 Process 5# Loaf: $2.2750 - $2.5300 Swiss 6-9# Cuts: $4.0050 - $4.4350 Cream Cheese 8 oz: $3.79 Flavored Milk ½ gallon: NA Cottage Cheese 16 oz: $3.81 Milk UHT 8 oz: NA FOREIGN -TYPE CHEESE - OCT. 21: The market for foreign cheese is quite stable. Yogurt 32 oz: $3.57 Sour Cream 16 oz: $2.72 Manufacturers in Western Europe feel there is good balance in the export market to the US. Export demand is strong. Customers continue to pursue contracts. Coupled with robust NDM PRODUCTS - OCTOBER 22 internal European demand, this somewhat strains European cheese production capacity. NDM - CENTRAL: Low/medium heat NDM - EAST: Low/medium heat NDM Selling prices, delivered, dollars per/lb: Imported Domestic NDM prices were steady on the mostly, prices are stable in the mostly series. Mod- Blue: $2.6400 - 5.2300 $3.2225 - 4.7100 in spite of a two penny lift on the top of erate NDM interest from domestic custom- Gorgonzola: $3.6900 - 5.7400 $3.7300 - 4.4475 the range. Spot trading activity was busier ers and good global demand, in tandem Parmesan (Italy): 0 $4.6100 - 6.7000 than last week, but slower than in late Sep- with current output levels, supports an Romano (Cows Milk): 0 $4.4125 - 6.5675 tember/early October when activity was undertone that is fairly steady this trad- Sardo Romano (Argentine): $2.8500 - 4.7800 0 lively. Production remains active. Contacts ing week. Some NDM sellers are optimis- Reggianito (Argentine): $3.2900 - 4.7800 0 suggest that some seasonal increases in tic that markets will trend higher over the buttermilk drying have stepped back, as short run, with the expectation of an uptick Jarlsberg (Brand): $2.9500 - 6.4500 0 NDM and SMP are the focus of some in purchases taking place. Spot offerings Swiss Cuts Switzerland: 0 $4.2350 - 4.5575 producers. Export interest remains a key are marginal, as those NDM manufactur- Swiss Cuts Finnish: $2.6700- 2.9300 0 factor in keeping supplies and markets in ers with lighter than desired milk deliveries check. A number of contacts relay domes- note a slight squeeze on inventory vol- WHOLESALE BUTTER MARKETS - OCTOBER 21 tic demand is sideways. High heat NDM umes. Market demand for high heat NDM prices slipped on the bottom of the range is good as manufacturers clear projected WEST: Butter production levels are vari- continues to edge up weekly, but pales in on a quiet spot trading week. volumes to balance improving sales; some able in the West. Projected orders are com- comparison to recent years. Butter producers plants are drying high heat this week. ing in at expected levels and being satisfied say some retail buyers’ pipelines are nearly NDM - WEST: West low/medium heat using stored inventory in addition to new depleted. Contacts suggest near term expec- NDM prices shifted a bit higher on the bot- LACTOSE: While the strength of the butter production. Sourcing cream has not tations remain somewhat subdued regarding tom of the range and bottom of the mostly lactose market from several months ago been a problem for butter makers, avail- butter market tones. price series. Spot trading activities are has dissipated and there’s a bearish senti- ability ticks higher, even as seasonal com- mixed. Market participants are purchas- ment, prices have been slow to change. petition from Class II manufacturing takes NORTHEAST: Butter production is steady ing weekly spots at steady to higher price Quarterly contracts are providing a stabi- form. Cream multiples range 1.05-1.26. Print on fairly moderate churning. Limitations on points. However, some industry contacts lizing effect on market prices and many manufacturing is very active and unsalted milk intakes, caused by Class I pulls, and are waiting to see where prices will go. lactose manufacturers report being com- butter demand has increased with the shift uninspiring cream offers in the spot cream Production schedules are steady to active. mitted through the end of the year. A few to the baking season. Regional factors that market drive output levels. Manufactur- Manufacturers’ supplies are growing a bit processors continue to see good demand hamper sales in the foodservice sector are ers are reluctantly turning away orders, as in the region. Some operations continue from infant formula buyers. Some contacts ongoing and broadly curb total volumes sold. they lean heavily on micro-fixing butter to to work through healthy export demands. think standardization needs will be solid. Export orders continue to advance butter fulfill existing sales as interest appears to supplies to offshore customers. approach full swing from retail. Uncertainty is at the forefront of the butter supply chain, CENTRAL: Butter producers continue as some sources suggest that excessive WEEKLY COLD STORAGE HOLDINGS to churn steadily as late-week cream has consumer buying could reemerge. Retail SELECTED STORAGE CENTERS IN 1,000 POUNDS - INCLUDING GOVERNMENT remained available at similar rates week to butter ads are mixed, with the Northeast DATE ...... BUTTER CHEESE week. Plant managers say cream is avail- seeing an uptick in ads, but the Southeast able from local and western sources. Cream noted a slight decline. Meanwhile, a recent 10/19/20 ...... 64,275 73,279 suppliers are also negotiating ahead of time market report points out that September 10/01/20 ...... 67,723 76,366 for Thanksgiving week. Retail customers are same-store sales and traffic were the best Change ...... -3,448 -3,087 active ahead of the holiday rush. Foodservice since February, prior to the pandemic. Percent Change...... -5 -4 Page 16 CHEESE REPORTER October 23, 2020

submit pricing through a competi- CME CASH PRICES - OCTOBER 19 - 23, 2020 USDA Authorizes tive acquisition process. Visit www.cheesereporter.com for daily prices $500 Million For The third round of Farmers to 500-LB 40-LB AA GRADE A DRY Families Food Box program was CHEDDAR CHEDDAR BUTTER NFDM WHEY Fourth Round Of announced July 24, 2020, and MONDAY $2.2550 $2.7400 $1.4975 $1.1400 $0.3875 October 19 (+5) (+2) (-1¼) (NC) (NC) President Trump announced on Food Box Purchases Aug. 24, 2020, that up to an addi- TUESDAY $2.3000 $2.7400 $1.4975 $1.1275 $0.3875 Washington—The US Depart- October 20 (+4½) (NC) (NC) (-1¼) (NC) tional $1 billion was being made ment of Agriculture (USDA) WEDNESDAY $2.3075 $2.7400 $1.4525 $1.1125 $0.3750 available for deliveries through October 21 (+¾) (NC) (-4½) (-1½) (-1¼) today announced it has authorized Oct. 31, 2020. USDA announced THURSDAY $2.4025 $2.7725 $1.4350 $1.0975 $0.3750 $500 million for a fourth round of contracts for the third round on October 22 (+9½) (+3¼) (-1¾) (-1½) (NC) purchases for the Farmers to Fami- Sept. 17, 2020, and has purchased FRIDAY $2.4550 $2.7725 $1.4350 $1.0975 $0.3850 lies Food Box Program. more than $2.981 billion worth of October 23 (+5¼) (NC) (NC) (NC) (+1) USDA is issuing solicitations for food, to date. Week’s AVG $2.3440 $2.7530 $1.4635 $1.1150 $0.3820 the fourth round to existing Basic In the second round of purchas- Change (+0.1710) (+0.0390) (-0.0190) (-0.0210) (-0.0080) Ordering Agreement (BOA) hold- ing and distribution, which began Last Week’s $2.1730 $2.7140 $1.4825 $1.1360 $0.3900 ers and expects to award contracts July 1 and ended on Sep. 18, 2020, AVG by Oct. 30 for deliveries of food USDA purchased more than 2019 AVG $2.1425 $2.1060 $2.0775 $1.1620 $0.2875 boxes from Nov. 1 through Dec. $1.763 billion of food through Same Week 31, 2020. extended contracts of select ven- In the fourth round of the food dors from the first round of the pro- MARKET OPINION - CHEESE REPORTER box program, as in the third round, gram. The first round of purchases states have been allocated boxes Cheese Comment: On Monday, 1 car of blocks was sold at $1.7500; an uncovered occurred from May 15 through offer of 1 car at $2.7400 then set the price. There was no block market activity at based on the internal need of the June 30, 2020, and saw more than all on Tuesday or Wednesday. On Thursday, 1 car of blocks was sold at $2.7725, state. The program will continue 35.5 million boxes delivered in the which raised the price. One car of blocks was sold Friday at $2.7725, which left the the purchase of combination boxes first 45 days. price unchanged. The barrel price increased Monday on a sale at $2.2550, rose to include dairy products, fluid The Farmers to Families Food Tuesday on an unfilled bid at $2.3000, increased Wednesday on an unfilled bid at Box Program has delivered about $2.3075, jumped Thursday on an unfilled bid at $2.4025, and increased Friday on a milk, fresh produce and meat prod- sale at $2.4550. 17 carloads of 40-pound blocks have been traded at the CME thus ucts. $1 billion worth of dairy products to far in October, while 26 carloads of 500-pound barrels have been traded during the The program also will continue needy Americans since this spring, same period. to require that proposals illustrate according to the National Milk Butter Comment: The price declined Monday on a sale at $1.4975, fell Wednesday how coverage would be provided Producers Federation (NMPF). on a sale at $1.4525, and declined Thursday on a sale at $1.4350. 72 carloads of to areas identified as opportunity The food box program “has butter have been traded at the CME in October thusfar. zones, detail subcontracting agree- proven to be an effective benefit Nonfat Dry Milk Comment: The price fell Tuesday on a sale at $1.1275, declined ments, and address the “last mile” both for families needing assis- Wednesday on a sale at $1.1125, and fell Thursday on a sale at $1.0975. delivery of product into the hands tance and for dairy farmers and processors providing high-quality Dry Whey Comment: The price declined Wednesday on a sale at 37.50 cents, then of the food insecure population. increased Friday on an unfilled bid at 38.50 cents. Entities who meet the govern- products to those families via food ment’s requirements and specifica- boxes,” said Jim Mulhern, NMPF’s tions will be issued agreements and president and CEO. WHEY MARKETS - OCTOBER 19 - 23, 2020 RELEASE DATE - OCT. 22, 2020

Animal Feed Whey—Central: Milk Replacer: .2800 (NC) – .3000 (NC) Buttermilk Powder: Central & East: .9500 (NC) – 1.0300 (NC) West: .9300 (+1) – 1.0300 (NC) Mostly: .9400 (NC) – .9800 (NC) Casein: Rennet: 3.4650 (NC) – 3.5525 (NC) Acid: 3.6000 (NC) – 3.8250 (NC)

Dry Whey—Central (Edible): Nonhygroscopic: .3200 (+2) – .4100 (+1) Mostly: .3400 (NC) – .3700 (+1) Dry Whey–West (Edible): Nonhygroscopic: .3375 (NC) – .4300 (+3) Mostly: .3675 (+¾) – .4000 (+2) Dry Whey—NorthEast: .3200 (NC) – .3900 (+½)

Lactose—Central and West: Edible: .3900 (NC) – .6300 (NC) Mostly: .4500 (NC) – .5500(NC)

Nonfat Dry Milk —Central & East: Low/Medium Heat: 1.0800 (NC) – 1.1700 (+2) Mostly: 1.0900 (NC) – 1.1300 (NC) High Heat: 1.1300 (-2) – 1.2500 (NC) Nonfat Dry Milk —Western: Low/Medium Heat: 1.0700 (+3) – 1.1750 (NC) Mostly: 1.1000 (+1) – 1.1500 (NC) High Heat: 1.1300 (NC) – 1.3050 (NC)

Whey Protein Concentrate—Central and West: Edible 34% Protein: .7500 (NC) – 1.0400 (NC) Mostly: .8200 (NC) – .9400 (NC) Whole Milk—National: 1.5500 (NC) – 1.7500 (NC)

Visit www.cheesereporter.com for historical dairy, cheese, butter, and whey prices

AVERAGE MONTHLY WPC MOSTLY PRICES: USDA Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 10 .9271 .9307 .9130 .9102 .9238 .9432 .9444 .9555 .9662 .9845 .9950 .9950 ‘11 1.0233 1.0597 1.2404 1.3686 1.5043 1.5570 1.5650 1.5376 1.4900 1.4363 1.4458 1.4600 ‘12 1.5239 1.5271 1.5091 1.4195 1.3010 1.1977 1.1401 1.1272 1.1862 1.2283 1.2358 1.2483 ‘13 1.2606 1.2472 1.2150 1.2378 1.2786 1.3172 1.3518 1.3670 Govt Shutdown 1.6046 1.6908 ‘14 1.7663 1.7799 1.7694 1.7682 1.7530 1.6612 1.6089 1.5549 1.4355 1.3358 1.2751 1.2326 ‘15 1.1727 1.0970 1.0031 .9439 .9103 .8620 .7863 .6473 .5610 .5333 .5313 .5300 ‘16 .5445 .5750 .5852 .6076 .6239 .6616 .6937 .7151 .7305 .7706 .7961 .8608 ‘17 .9318 .9905 .9681 .9425 .9138 .9013 .8919 .8486 .8231 .8063 .7757 .7490 ‘18 .7268 .7211 .6960 .7027 .7502 .7949 .8092 .8144 .8437 .8658 .8817 .8851 ‘19 .8929 .8995 .9025 .9025 .9074 .9244 .9297 .9444 .9465 .9530 .9597 .9854 ‘20 1.0017 1.0140 1.0148 1.0027 .9590 .9356 .8945 .8591 .8500 For more information, visit www.FlairPackaging.com