Volume 34 November 14, 2014 Number 43

Scan this code for breaking CME cheese price plummets; news and the latest markets! analysts expect more volatility

By Alyssa Mitchell Cheddar barrels also showed long as holiday orders move certainly an important factor INSIDE weakness in mid-October, fall- closer to being fi lled,” Dairy (in our price), and perhaps MADISON, Wis. — Cheddar ing as low as $1.9225 per pound Market News says. “Buyers we should look at them as a prices at the Chicago Mer- Oct. 24, but also recovered a bit have been adding to inven- dominating factor. However, ✦ Guest column: cantile Exchange (CME) to reach $2.16 Nov. 5. tories lately, but recent CME while what was happening in ‘Growth opportunities plummeted Tuesday, a move However, both blocks and activity refl ects sellers with the U.S. managed to trump the for the U.S. dairy industry.’ long-anticipated by dairy mar- barrels had steep declines extra blocks and barrels fi nd- gap between U.S. and world For details, see page 4. ket analysts who have been this week, falling 18 cents and ing less buyer interest than prices for some time, clearly a scratching their heads at the 17.25 cents, respectively, on expected. The weaker buyer day of reckoning was going to ✦ Cheese contest info long-term gap between U.S. Tuesday, and falling further to interest has surprised some come,” he says. now available online. and global prices. settle at $1.9425 and $1.9150, cheese sellers.” Novakovic notes that CME For details, see page 5. “The question is not so respectively, as of Friday. However, continued vola- futures indicate further price much ‘why now’ — it’s why did “The severity of the drop was tility is expected in the mar- weakness ahead for both butter ✦ Retail WATCH Exclusive: cheese shoot up to $2.20 again a little more than I anticipated, ketplace as lower prices may and cheese. Italian heritage, focus in the last month?” says Mike but the fact that it came down bring more buyers back to the Class III and Class IV milk on quality products set McCully, owner of The McCully was not surprising,” says Bill table, resulting in another price futures on Wednesday showed Lioni Latticini apart. Group LLC, Chicago. Brooks, dairy economist with bump, Brooks says. prices for Class III falling from For details, see page 7. CME Cheddar blocks fell FCStone, Chicago. “It’s a sideways market right $21.64 per hundredweight 21.25 cents Oct. 23 to $2.1575 Sara Dorland, managing now,” he says. “I don’t think this this month to $16.60 per hun- ✦ Vanic to retire; Zagzebski to per pound from $2.37, but in partner with Ceres Dairy Risk is the beginning of a straight dredweight by April of next succeed him at Great Lakes. the following weeks managed Management LLC, Seattle, downward trend yet.” year, and Class IV, at $17.60 in For details, see page 12. to rally back to $2.20 by Nov. 6. notes that while no one is fond McCully agrees that cheese November, falling to $16.19 by of a large drop like that seen on is likely to be well-supported December and into the $15.00s Tuesday, long, agonizing move- through December. early next year. ment down over several weeks “I think it will be near $2, Novakovic notes butter still Agropur announces $55 million keeps buyers cautious. give or take a dime,” he says. stands approximately $1 above “A drop like this gets things Andrew Novakovic, E.V. international prices. expansion in Weyauwega, Wis. moving, and we may see some Baker Professor of Agricul- CME butter dipped below buying pick up now,” she says. tural Economics at the Charles $2 per pound this week, set- LONGUEUIL, Quebec — Agropur Inc. is investing more than USDA’s Dairy Market News H. Dyson School of Applied tling at $1.9875 per pound as $55 million in its Weyauwega, Wis., facility to increase its Feta cheese notes some Midwest cheese Economics and Management of Friday. Butter previously production capacity. plants are operating near at Cornell University, notes had fallen below $2 at the end “There is a lot of tradition, skill and work ethic among our employees, capacity and also are fortify- that tight U.S. supplies and a of October, settling as low as and we are recognized in the market for having high-quality products,” ing vats with nonfat dry milk lack of imports due to various $1.77 Oct. 28, but bumped up says Doug Simon, president, USA Cheese Business Unit, Agropur. “We are (NDM). global fundamentals helped to over $2 last week before the a leader in Feta cheese production, and this will allow us to maintain “This has resulted in a situa- support U.S. cheese and butter declines seen this week. that leadership position. We are very excited about this investment and tion where increasingly cheese prices this year. McCully notes that some in the future of the Wisconsin dairy industry as it provides employment supplies are being viewed as “International markets are Turn to PRICES, page 14 a opportunities and a stable home for milk produced in the area.” Agropur CEO Robert Coallier adds that the investment “truly shows how committed we are to establishing our leadership in the U.S. market and to the future of the Wisconsin dairy industry.” The expansion, now underway, is to be completed in 2016. It is Judge dismisses consumer GMO labeling expected to create about 22 new jobs. measures fail in “I congratulate Agropur and applaud them for deciding to embark on lawsuit against Darigold Inc. Colorado, Oregon this major expansion in Wisconsin,” says Wisconsin Gov. Scott Walker. By Alyssa Mitchell “Not only is Wisconsin the top cheese-producing state in the country, By Emily King but the state has an international reputation for quality dairy products. SEATTLE — A federal judge has dismissed a lawsuit that accused The expansion will help to further that reputation.” WASHINGTON — Colorado Northwest dairy cooperative Darigold Inc./Northwest Dairy As- To help ensure that the Canadian company expanded in Wisconsin, and Oregon rejected ballot sociation of misleading consumers about its treatment of cattle the Wisconsin Economic Development Corp. (WEDC) is providing initiatives requiring the and employees. Agropur with $1.65 million in Economic Development Tax Credits over labeling of foods produced Earlier this year, plaintiffs Yesenia Ruiz and Fernanda Dorantes the next few years. In order to receive the full credits, Agropur must from genetically modifi ed fi led a complaint against Darigold alleging that the company’s retain its existing 146 jobs at the facility, create 22 new jobs and invest organisms (GMOs) during Corporate Social Responsibility Report (CSR) casts its treatment at least $55 million in capital investment. the 2014 election. Mean- of workers and cows in a positive light when they are mistreated, “WEDC is pleased to be able to assist Agropur in strengthening its while, Maui County, Hawaii, plaintiffs say. already strong position in the dairy industry and cheese production,” says approved a temporary ban The plaintiffs allege that Darigold misrepresented the condi- Reed Hall, secretary and CEO, WEDC. “Wisconsin produces so much cheese on GMO crop cultivation tions under which its products were produced and that the plain- that if the state was a country, it would rank fourth in the world in total and Humboldt County, Calif., tiffs relied on false assurances of ethical treatment for cows and cheese production behind the United States, Germany and France.” CMN Turn to DARIGOLD, page 14 a Turn to GMO, page 15 a © 2014 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 2 CHEESE MARKET NEWS® — November 14, 2014 MARKET INDICATORS

Chicago Mercantile Exchange CHEESE FUTURES* for the week ending November 13, 2014 Cash prices for the week ended November 14, 2014 (Listings for each day by month, settling price and open interest) Monday Tuesday Wednesday Thursday Friday Nov. 10 Nov. 11 Nov. 12 Nov. 13 Nov. 14 Fri., Nov. 7 Mon., Nov. 10 Tues., Nov. 11 Wed., Nov. 12 Thurs., Nov. 13 NOV14 2.149 2,204 2.141 2,205 2.129 2,200 2.123 2,200 2.120 2,203 Cheese Barrels DEC14 1.905 2,550 1.890 2,578 1.855 2,583 1.872 2,625 1.855 2,632 Price $2.1200 $1.9475 $1.9375 $1.9150 $1.9150 JAN15 1.770 2,345 1.769 2,386 1.760 2,467 1.762 2,524 1.760 2,540 2,455 Change -1 -2 1/4 NC FEB15 1.722 2,288 1.724 2,321 1.708 2,379 1.710 2,432 1.715 NC -17 1/4 MAR15 1.720 2,296 1.730 2,333 1.721 2,360 1.720 2,408 1.720 2,450 Cheese 40-lb. block APR15 1.725 1,949 1.729 1,991 1.726 2,042 1.725 2,077 1.730 2,112 MAY15 1.725 1,799 1.721 1,841 1.715 1,894 1.720 1,935 1.718 1,967 Price $2.1800 $2.0000 $1.9900 $1.9425 $1.9425 JUN15 1.727 1,847 1.720 1,897 1.714 1,945 1.715 1,984 1.711 2,002 Change -2 -18 -1 -4 3/4 NC JUL15 1.736 1,339 1.729 1,410 1.730 1,438 1.730 1,489 1.725 1,499 AUG15 1.770 1,207 1.765 1,248 1.764 1,286 1.764 1,309 1.758 1,330 Weekly average (Nov. 10-14): Barrels: $1.9670(-.1620); 40-lb. Blocks: $2.0110(-.1670). SEP15 1.780 1,120 1.775 1,149 1.770 1,190 1.771 1,232 1.773 1,236 Weekly ave. one year ago (Nov. 11-15, 2013): Barrels: $1.7660; 40-lb. Blocks: $1.8125. OCT15 1.775 861 1.773 888 1.768 916 1.764 949 1.768 970 NOV15 1.760 811 1.760 843 1.755 865 1.755 898 1.755 905 DEC15 1.753 808 1.753 835 1.750 853 1.755 869 1.755 880 Grade A NDM JAN16 1.745 18 1.745 18 1.740 29 1.740 33 1.740 33 Price $1.1725 $1.1775 $1.1775 $1.1800 $1.1800 FEB16 1.750 13 1.750 13 1.748 10 1.748 14 1.748 14 Change +1 1/4 +1/2 NC +1/4 NC Total Contracts Traded/ Open Interest 506/23,455 634/23,956 739/24,496 672/25,021 340/25,271 Weekly average (Nov. 10-14): Grade A: $1.1775(-.0265). Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. *Total Contracts Traded/Open Interest reflect additional months not included in this chart. Grade AA Butter Price $2.0000 $2.0000 $1.9900 $1.9875 $1.9875 Change -3/4 NC -1 -1/4 NC Weekly average (Nov. 10-14): Grade AA: $1.9930(-.0155). DRY WHEY FUTURES* for the week ended November 13, 2014 (Listings for each day by month, settling price and open interest) Class II Cream (Major Northeast Cities): $2.5709(+.2157)–$2.9123(+.3363). Fri., Nov. 7 Mon., Nov. 10 Tues., Nov. 11 Wed., Nov. 12 Thurs., Nov. 13 Sign up for our daily fax or e-mail service for just $104 a year. Call us at 608-288-9090. NOV14 59.75 344 59.75 344 59.75 344 59.75 344 59.75 344 DEC14 54.88 428 54.60 432 54.25 432 56.00 439 56.50 443 JAN15 49.75 526 49.30 534 49.18 550 50.03 565 51.00 579 FEB15 47.25 553 46.30 554 46.00 563 47.00 578 47.25 583 MAR15 44.00 532 42.55 537 42.55 543 43.50 554 44.38 566 APR15 43.90 425 42.00 423 42.00 435 42.03 443 42.95 455 MAY15 43.90 448 42.50 447 42.25 449 42.93 462 43.75 470 JUN15 44.23 430 43.50 440 43.45 455 43.80 467 44.50 472 Weekly Cold Storage Holdings November 10, 2014 JUL15 45.00 349 44.25 354 44.25 356 44.00 375 45.00 376 On hand Week Change since Nov. 1 Last Year AUG15 46.00 317 44.88 318 45.00 322 45.25 327 45.25 329 Monday Change Pounds Percent Pounds Change SEP15 46.25 260 45.00 261 45.25 268 45.50 268 45.50 268 OCT15 46.78 211 46.50 212 46.25 220 46.25 220 46.25 Butter -1,495 -1,899 222 10,694 -15 10,825 -131 NOV15 47.03 203 46.38 209 46.38 209 46.38 209 46.38 210 Cheese 93,467 -1,708 -1,544 -2 102,927 -9,460 DEC15 47.00 198 47.00 199 46.00 206 46.00 206 46.00 206 (These data, which include government stocks and are reported in thousands of pounds, are based on reports from Total Contracts Traded/ a limited sample of cold storage centers across the country. This chart is designed to help the dairy industry see the Open Interest 88/5,224 122/5,265 132/5,363 128/5,468 89/5,534 trends in cold storage between the release of the National Agricultural Statistics Service’s monthly cold storage reports.) Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. *Total Contracts Traded/Open Interest reflect additional months not included in this chart.

CLASS III PRICE Dry Products* November 14, 2014 (Dollars per hundredweight, 3.5% butterfat test) YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC NONFAT DRY MILK 19.32 17.03 18.00 16.76 18.18 20.25 18.24 17.32 16.28 17.06 15.51 15.28 2008 Central & East: low/medium heat $1.1000(-7)-$1.5450(-1 3/4); 10.78 9.31 10.44 10.78 9.84 9.97 9.97 11.20 12.11 12.82 14.08 14.98 2009 mostly $1.2200(-1)-$1.4675(-1 3/4). 14.50 14.28 12.78 12.92 13.38 13.62 13.74 15.18 16.26 16.94 15.44 13.83 2010 high heat $1.4950-$1.6300. 13.48 17.00 19.40 16.87 16.52 19.11 21.39 21.67 19.07 18.03 19.07 18.77 2011 West: low/medium heat $1.1100(-1)-$1.4925(-4); 17.05 16.06 15.72 15.72 15.23 15.63 16.68 17.73 19.00 21.02 20.83 18.66 2012 mostly $1.1500-$1.4125(-3 3/4). 18.14 17.25 16.93 17.59 18.52 18.02 17.38 17.91 18.14 18.22 18.83 18.95 2013 high heat $1.4700-$1.5700(-3). 21.15 23.35 23.33 24.31 22.57 21.36 21.60 22.25 24.60 2014 23.82 Calif. manufacturing plants: extra grade/grade A weighted ave. $1.4524(-.0368) based on 7,200,762 lbs.

WHOLE MILK POWDER (National): $1.6000-$1.8200. STAFF SUBSCRIPTION INFORMATION Susan Quarne, Publisher Cheese Market News®, Publication #0598-030, (ISSN 0891- EDIBLE LACTOSE (PH 608/831-6002; FAX 608/831-1004) 1509), is published weekly by Quarne Publishing LLC, 4692 (FOB)Central and West: $.2450(-1/2)-$.6200; mostly $.3400-$.4800. e-mail: [email protected] Signature Drive, Middleton, WI 53562; Phone 608/831-6002; Kate Sander, Editorial Director FAX 608/831-1004. Periodicals postage paid at Madison, WI. (PH 509/962-4026; FAX 509/962-4027) Circulation records are maintained by Quarne Publishing LLC, 4692 Signature Drive, Middleton, WI 53562. POSTMASTER: WHEY POWDER e-mail: [email protected] Send address changes to Cheese Market News®, Subscriber Central: nonhygroscopic $.4000-$.6800; Alyssa Mitchell, Senior Editor Services, P. O. Box 628254, Middleton, WI 53562; Form mostly $.5400-$.6375. (PH 608/288-9090; FAX 608/288-9093) 3579 requested; or call direct at 608/831-6002. All rights e-mail: [email protected] West: nonhygroscopic $.4800-$.6775; reserved under the United States International and Pan- mostly $.5400-$.6375. Rena Archwamety, News/Web Editor American Copyright Conventions. No part of this publication (PH 608/288-9090; FAX 608/288-9093) may be reproduced, stored in a retrieval system or transmitted (FOB) Northeast: extra grade/grade A $.6100-$.6900. e-mail: [email protected] in any form or by any means, mechanical, photocopying, Emily King, Assistant Editor electronic recording or otherwise, without the prior written ANIMAL FEED WHEY (Central): Whey spray milk replacer $.3500-$.5775. (PH 608/288-9090; FAX 608/288-9093) permission of Quarne Publishing LLC. Opinions expressed e-mail: [email protected] in articles are those of the authors and do not necessarily UHÁHFWWKRVHRI4XDUQH3XEOLVKLQJ//&GED&KHHVH0DUNHW WHEY PROTEIN CONCENTRATE (34 percent): $1.0800(-2)-$1.5300; REGULAR CONTRIBUTORS ® ® News . Cheese Market News does not endorse the products mostly $1.1500(-5)-$1.3975. John Umhoefer, FCStone, International Dairy Foods of any advertiser and does not assume and hereby disclaims Association, National Milk Producers Federation, U.S. any liability to any person for any loss or damage caused by Dairy Export Council, Eric Meyer, Rice Dairy errors or omissions in the material contained herein, regard- DRY BUTTERMILK less of whether such errors result from negligence, accident (FOB)Central & East: $1.0000(-8)-$1.1900(-3 1/2). SUBSCRIPTIONS & BUSINESS STAFF or any other cause whatsoever. Copyright 2014 by Quarne Subscription/advertising rates available upon request Publishing LLC. (FOB) West: $1.1600-$1.3800(-3); mostly $1.2600(-3)-$1.3400(-1). Contact: Susan Quarne - Publisher Subscriptions: $145 for U.S., second-class delivery; P.O. Box 628254, Middleton, WI 53562 IRU86ÀUVWFODVVGHOLYHU\LQFOXGLQJ&DQDGDDQG PHONE 608/831-6002 • FAX 608/831-1004 International rate to all others. Printed in U.S.A. CASEIN: Rennet $4.2000-$4.8000; Acid $4.4000-$5.0000. WEBSITE: www.cheesemarketnews.com *Source: USDA’s Dairy Market News

DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions. © 2014 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) November 14, 2014 — CHEESE MARKET NEWS® 3 NEWS/BUSINESS

USDA increases 2014 milk production forecast, lowers 2015 forecast in WASDE report

WASHINGTON — With growth in milk duction in 2015 is now forecast at 212.3 month’s forecast. In 2015, USDA is pro- forecast at $0.650-$0.660 and the 2015 per cow, USDA increased its 2014 forecast billion pounds, down 500 million pounds jecting an average of $1.690-$1.780 per price range projected at $0.560-0.590. for U.S. milk production in its “World Ag- from last month’s forecast. pound, down 1/2 cent from last month’s The 2014 Class III price forecast is ricultural Supply and Demand Estimates” In the report, USDA lowered its export forecast. In the report, NDM is forecast increased by 10 cents in this month’s re- report released Monday, the day before forecasts for 2014 and 2015 as U.S. dairy to average $1.770-$1.790 this year, and port to $22.50-$22.60 per hundredweight, cheese markets signifi cantly dropped at products, particularly on a skim solids drop to $1.410-$1.480 in 2015, a decrease but in 2015 the Class III price forecast the Chicago Mercantile Exchange. basis, remain less competitive in world of 4 cents from last month’s report. is lowered by 10 cents to $17.15-$18.05. USDA currently is forecasting U.S. markets. Based on prices to date and weaker Meanwhile, the 2014 Class IV price milk production will total 206.2 billion USDA upped its cheese and nonfat expected exports, USDA lowered its forecast is lowered to $22.05-$22.25, pounds in 2014, 100 million pounds more dry milk (NDM) forecasts for 2014, but butter price forecast for 2014 to $2.120- down 35 cents from last month, and low- than it forecast last month. However, lowered its price forecasts for 2015 as $2.150. In 2015, butter is forecast to ered 40 cents for 2015 to $17.05-$18.05. the 2015 production forecast is lowered domestic supplies are expected to be average in the $1.660-$1.780 range, down USDA forecasts the 2014 all-milk as the expansion in cow numbers and relatively large. 2 cents from last month’s forecast. price will be in the $24.15-$24.25 range. growth in milk per cow are expected to Cheese is forecast to average $2.170- The dry whey price forecasts are un- In 2015, the all-milk price is forecast be more moderate. Total U.S. milk pro- $2.180 per pound in 2014, up from last changed from last month, with the 2014 in the $18.85-$19.75 range. CMN

Anonymous $1M gift creates food science CME FUTURES for the week ended November 13, 2014 fund in honor of Penn professor emeritus Class III Milk* UNIVERSITY PARK, Penn. — Professor chunks and vanilla bean, was named for Fri., Nov. 7 Mon., Nov. 10 Tues., Nov. 11 Wed., Nov. 12 Thurs., Nov. 13 NOV14 21.86 4,492 21.75 4,489 21.64 4,496 21.64 4,533 21.61 4,507 Emeritus Phil Keeney has been linked him and is part of the creamery’s “hall DEC14 19.18 4,286 18.99 4,325 18.66 4,427 18.88 4,428 18.70 4,475 with Penn State’s Department of Food of fame” lineup of fl avors. JAN15 17.57 3,845 17.53 3,861 17.36 3,928 17.49 4,046 17.50 4,076 Science since its establishment in 1975. After receiving his doctorate in dairy FEB15 16.90 3,840 16.85 3,872 16.70 3,912 16.75 3,962 16.74 3,986 MAR15 16.69 3,341 16.66 3,377 16.61 3,385 16.62 3,431 16.63 3,468 An anonymous $1 million gift will ensure science from Penn State in 1955, Keeney APR15 16.74 2,744 16.68 2,772 16.63 2,802 16.60 2,830 16.68 2,865 Keeney’s name will continually be con- joined the Penn State faculty as an assis- MAY15 16.73 2,669 16.62 2,705 16.58 2,715 16.60 2,735 16.65 2,769 nected to the department’s programs. tant professor of dairy science, earning JUN15 16.75 2,498 16.65 2,535 16.62 2,558 16.60 2,584 16.65 2,611 JUL15 16.90 1,795 16.78 1,853 16.76 1,862 16.78 1,912 16.78 1,915 The donation will establish the Philip the rank of full professor in 1966. He AUG15 17.29 1,725 17.16 1,771 17.15 1,810 17.17 1,836 17.13 1,863 G. Keeney Food Science Department became a member of the food science SEP15 17.39 1,625 17.31 1,652 17.25 1,690 17.25 1,725 17.26 1,733 OCT15 17.41 1,282 17.39 1,305 17.30 1,347 17.27 1,365 17.29 1,393 Head Excellence Fund. Proceeds from faculty when Penn State designated the NOV15 17.32 1,124 17.26 1,150 17.17 1,160 17.20 1,193 17.24 1,200 the endowment will be used at the dairy manufacturing major as part of the DEC15 17.18 1,054 17.13 1,070 17.19 1,077 17.15 1,103 17.15 1,104 discretion of the department head to food science program in 1975. He served JAN16 16.69 120 16.69 120 16.70 136 16.70 136 16.70 136 support programs and new initiatives as head of the department of food science Total Contracts Traded/ Open Interest 1,344/37,522 in food science research, extension and from 1980 to 1985. 999/36,654 1,011/37,071 1,702/38,043 1,234/38,325 teaching. Keeney developed and taught intro- Class IV Milk*

“It’s hard to overstate the impact ductory undergraduate food science Fri., Nov. 7 Mon., Nov. 10 Tues., Nov. 11 Wed., Nov. 12 Thurs., Nov. 13 that Phil Keeney has had on a couple courses and developed graduate courses NOV14 17.50 1,060 17.50 1,060 17.50 1,060 17.60 1,061 17.69 1,062 of generations of this department’s on product development and ingredient DEC14 16.62 973 16.49 973 16.24 981 16.34 984 16.40 985 faculty, staff, students and alumni, not technology. JAN15 16.30 352 16.20 355 16.19 355 16.19 357 16.19 357 FEB15 15.99 288 15.95 288 15.77 288 15.68 291 15.68 291 to mention our food industry clientele,” Once called the “Emperor of Ice MAR15 15.60 287 15.50 287 15.35 287 15.20 290 15.20 290 says Robert Roberts, professor and head Cream” by People magazine, he was APR15 15.60 203 15.57 203 15.26 203 15.26 206 15.26 206 MAY15 15.68 165 15.68 165 15.43 165 15.43 168 15.43 168 of food science, Penn State University. director of the Penn State Ice Cream JUN15 16.15 170 16.04 170 15.52 176 15.60 182 15.60 182 “The establishment of an excellence Short Course from 1955 until his retire- JUL15 16.54 78 16.43 78 16.42 78 16.23 81 16.23 82 fund in his honor is a fi tting tribute to ment in 1985. AUG15 16.95 89 16.75 89 16.75 89 16.42 93 16.72 96 SEP15 17.03 82 16.80 82 16.80 82 16.65 87 16.65 88 his dedication and longtime service to Since his retirement, he has served Total Contracts Traded/ food and dairy science programs in the as a consultant on various industry proj- Open Interest 26/3,980 22/3,983 18/3,997 58/4,041 33/4,051 College of Agricultural Sciences.” ects and initiatives and has remained Throughout his career, Keeney also active in departmental and university Cash-Settled NDM* was involved with the direction of Penn affairs. In 1998, he was named a Penn Fri., Nov. 7 Mon., Nov. 10 Tues., Nov. 11 Wed., Nov. 12 Thurs., Nov. 13

State’s Berkey Creamery. Keeney Beany, State Distinguished Alumnus, the uni- NOV14 138.40 625 138.00 626 137.50 623 138.50 620 139.25 619 a chocolate ice cream with chocolate versity’s highest alumni award. CMN DEC14 133.00 713 130.50 719 130.15 821 130.50 721 131.20 724 JAN15 130.75 530 128.00 533 127.50 538 127.00 544 127.00 544 FEB15 125.43 501 124.48 504 123.00 503 123.50 513 123.50 518 MAR15 122.70 494 120.98 493 117.50 514 117.50 519 117.50 521 National Dairy Products Sales Report APR15 120.50 392 119.00 387 117.00 413 117.00 432 117.00 436 MAY15 122.00 344 121.50 344 118.75 384 118.00 420 118.00 422 For the week ended: 11/8/14 11/1/14 10/25/14 10/18/14 JUN15 124.10 328 122.00 336 120.50 333 120.50 347 121.50 355 JUL15 128.00 148 126.00 151 125.00 178 124.50 194 125.00 196 Cheese 40-lb. Blocks: Total Contracts Traded/ Average price1 $2.2198 $2.2372 *$2.2241 $2.2637 Open Interest 181/4,426 163/4,465 421/4,647 216/4,773 63/4,805 Sales volume2 11,790,072 11,369,321 *13,377,892 13,601,073 Cheese 500-lb. Barrels: Cash-Settled Butter* 1 Average price $2.1946 $2.2334 $2.2754 $2.3171 Fri., Nov. 7 Mon., Nov. 10 Tues., Nov. 11 Wed., Nov. 12 Thurs., Nov. 13 $2.2149 Adj. price to 38% moisture $2.0912 $2.1271 $2.1701 NOV14 183.50 1,223 186.00 1,216 186.50 1,216 186.50 1,216 186.50 1,216 Sales volume2 9,587,393 8,972,580 9,883,909 9,378,425 DEC14 171.00 997 170.75 1,005 170.00 1,016 169.30 1,022 170.25 1,026 Moisture content 34.93 34.90 34.99 35.14 JAN15 170.50 515 171.00 519 170.00 523 170.00 531 169.75 531 Butter: FEB15 170.75 487 170.50 490 170.00 495 170.00 524 170.00 524 171.00 444 171.78 446 170.50 450 170.00 462 170.03 470 1 $1.9672 $1.9882 $2.1938 $2.6983 MAR15 Average price APR15 171.75 407 171.75 411 171.00 419 171.00 428 171.03 437 2 Sales volume 4,154,765 3,814,843 3,539,634 3,090,820 MAY15 173.50 279 173.00 301 172.50 301 172.03 313 172.00 319 Nonfat Dry Milk: JUN 15 175.00 281 175.00 282 174.03 287 173.53 294 173.53 294 Average price1 $1.4633 $1.4578 $1.4915 $1.5118 JUL15 177.00 151 177.00 152 177.00 155 176.03 161 176.03 162 Sales volume2 16,580,555 17,067,915 *17,050,807 17,949,446 AUG15 177.00 127 177.50 140 177.50 143 178.00 144 179.00 148 Dry Whey: Total Contracts Traded/ Average price1 $0.6454 *$0.6414 $0.6387 $0.6523 Open Interest 190/5,241 175/5,297 63/5,345 123/5,436 81/5,469 2 6,818,751 *7,492,164 7,774,858 7,784,703 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. Sales volume *Total Contracts Traded/Open Interest reflect additional months not included in this chart.

*/Revised. 1/Prices weighted by volumes reported. 2/Sales as reported by participating manufacturers. Reported in pounds. More information is available by calling AMS at 202-720-4392.

DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions. © 2014 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 4 CHEESE MARKET NEWS® — November 14, 2014 GUEST COLUMNIST CMN Exclusive!

on our ability to innovate and develop prior to developing a product bound products that have the performance, for export. Perspective: flavor and nutritional applications Speaking of dairy powders, this area Industry Innovation required by consumers. is sure to see a tremendous amount of Last year dairy exports totaled $6.7 growth in the next decade. Consumers John Lucey, director of the Wiscon- billion, solidifying exports as a major are beginning to see the many health sin Center for Dairy Research at the driver in the future growth of the U.S. benefi ts that can come with the use University of Wisconsin-Madison, dairy industry. As such, companies of whey protein powders, and dairy contributes this column exclusively have ramped up efforts to develop new research is continuing to prove the ben- for Cheese Market News®. products that fi t specifi c export market efi ts of protein powder use in everything needs. These products often include from a workout shake to infant formula. easy-to-ship items that require minimal In addition to the massive amounts refrigeration and have a long shelf life of whey and nonfat dry milk powders (e.g., whey powders). On the cheese that are exported each year, products side, export opportunities exist for ex- like whole milk powder, permeate, tended shelf life, mild fl avored cheeses milk protein concentrates, lactose and destined for retail; low salt cheeses for micellar casein (casein concentrates) food service applications; stirred curd also are growing areas of interest. block Gouda instead of the traditional While there is a great deal of positive Growth opportunities wheel; and cheese ingredients for pro- news, manufacturers face challenges cessing. CDR has certainly seen this due to the many functional or micro- for the U.S. dairy industry trend increasing as we have recently biological requirements dictated by partnered with a number of companies various export regions. These require- The Center for Dairy Research U.S. milk production that is ultimately looking to develop cheese products that ments can include a particular fl avor, (CDR) receives many questions each exported as powders, cheese, co-prod- are able to make the journey to popular high-heat stable products, long shelf year from dairy farmers, industry per- ucts, etc. is well positioned to continue export regions such as Asia, Mexico and life, specifi c levels of contaminants and sonnel, scientists and students, but per- its growth. Positive health news about the Middle East. various required testing methods. It will haps the most frequently asked question dairy proteins also will drive growth Still, exporting poses a number be important for U.S. manufacturers is, where are the growth opportunities both domestically and internationally. of challenges, including regulatory to understand these regulations and for dairy? It’s a simple question with a The United States still has a much lower barriers, lack of unifi ed international for all of us to work together to be sure complex answer. As I look ahead to the per capita consumption of cultured standards for some analytical methods, that the best standards are in place next fi ve to ten years, I believe a number dairy products than many European and channels and distribution systems internationally. of important trends will likely infl uence countries, so there is likely consider- that are different from the United All of these great products would the answer to this topic. able opportunity to continue the recent States. Note that with regard to exports, not be possible, however, without the Exports are, of course, a growing growth in this category driven by Greek powders can be particularly tricky, innovation and research that occurs area, and we are very likely to see (or other high-protein) yogurt. All of especially in relation to infant formula, within the industry on a daily basis. continued growth as the percentage of this growth, however, will be dependent so be sure to investigate the regulations Turn to LUCEY, page 6 a EXPORT TOOL KIT CMN Exclusive!

This year, China is on pace to move up chains, is spreading to mainstream to the No. 7 slot, with cheese imports up retailers, as consumers take their fi rst Perspective: 51 percent through September. Volume tentative steps toward at-home use. Export Expertise is on track to exceed 150 million pounds. With help from suppliers, the natural The scarcity of retail sales would cheese sector will certainly emerge and seem to suggest disinterest or distaste grow over the next 10 years. Ross Christieson is senior from Chinese consumers, but it is really Broad opportunities exist in cheese vice president, market research more an issue of unfamiliarity. This is in China if U.S. suppliers focus on devel- and analysis, U.S. Dairy Export a country that is just discovering how oping them. The United States is China’s Council. He contributes this column to enjoy cheese — learning tastes, No. 3 supplier after New Zealand and exclusively for Cheese Market textures and applications. What it has Australia. U.S. share of imports is close ® News . learned, it likes. to 20 percent. A rapidly growing foodservice sec- Moving to the top will require more tor is driving cheese imports. Almost than arms-length sales transactions. all the cheese eaten in China is eaten We have often talked about the need as an ingredient in a Western dish, for commitment to export markets, and like pizza, burgers and baked goods. here again it holds true. Chinese food Cheddar for processing, mozzarella manufacturers and distributors are for shredding and grated cheeses for gearing up for increased cheese usage a variety of industrial uses make up and looking for partnerships that go China: World’s largest cheese buyer? nearly half of China’s import volume. beyond the traditional buyer-seller Another 17 percent is processed cheese relationship. They are looking for con- You would be hard pressed to fi nd Dairy Export Council (USDEC) details for foodservice use. sistent, ongoing support and innovation a Chinese consumer who has bought the escalation of Chinese cheese The key end-user sectors — bakery, and suppliers who can meet their unique a piece of cheese at a supermarket in imports and consumption in recent pizza and other Western foods — all needs, such as smaller retail packaging. China. years — a streak that, with some help have tremendous upside growth po- In virtually every meeting I take in That’s probably not the way you’d from knowledgeable, committed U.S. tential. my visits to China, buyers will say to me, expect me to begin an article touting suppliers, could make the nation not Local and multinational manufactur- “Teach us how to use cheese.” They need cheese export potential to the world’s only the largest U.S. cheese buyer but ers are investing in capacity to produce outside help to understand the business. most populous nation. But in this case, also the world’s largest cheese importer more processed cheese domestically, They need technical, marketing and it’s not so much a negative as it is one over the next decade. moves sure to drive cheddar imports. new product development assistance of many indicators of the vast potential From 2008-2013, Chinese cheese Conversion and cut-and-wrap fa- and training. for Chinese cheese demand and import imports grew an average of 28 percent cilities for bulk imports will almost They want to hear new ideas. There growth. per year by volume. The country went certainly come sooner rather than later. is a huge opportunity to develop fusion A soon-to-be-released research from being the world’s 16th largest And retail opportunity, previously foods that incorporate cheese into report from the checkoff-funded U.S. cheese importer to the 8th largest. centered on Western gourmet food Turn to CHRISTIESON, page 6 a © 2014 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) November 14, 2014 — CHEESE MARKET NEWS® 5 NEWS/BUSINESS

IDFA urges USDA to select voucher system for Dairy Product Donation Program distribution WASHINGTON — In comments recently cally low. By providing funds to be used small group of dairy products. Spreading programs, including the federal Supple- submitted to USDA on the new Margin to increase sales of dairy products, the donations across the full range of dairy mental Nutrition Assistance Program and Protection Program for Dairy (MPP) and DPDP should lead to an increase in the products would minimize market disrup- the Great American Milk Drive, sponsored Dairy Product Donation Program (DPDP), farm milk price, USDA says. tions. Moreover, including products with by the Milk Processor Education Program established under the 2014 Farm Bill, the In its comments, IDFA says USDA higher minimum regulated prices, espe- and Feeding America. International Dairy Foods Association must be able to start and stop the pro- cially fl uid milk, would have the greatest “Distribution methods that can accom- (IDFA)focuses largely on DPDP, stress- gram quickly, as required by the statute, impact on farm milk prices. modate a high volume of dairy products ing the importance of proper timing and to avoid market distortions that could IDFA says it believes the only practical during short time intervals would provide product selection, and urging USDA to harm international competitiveness way to administer the DPDP is through a the greatest and most immediate impact select a voucher system for distribution. and increase costs for other government voucher program. The comments provide on farm milk price recovery — the princi- USDA in August issued its fi nal rule on nutrition programs. This may be diffi cult examples of current effective voucher pal goal of the program,” IDFA says. CMN implementation plans for MPP and DPDP. to do given that federal and state milk The comment period on the programs marketing order systems have time lags Average 1-pound butter price at retail falls recently was extended to Dec. 15. between when farm milk is marketed, The DPDP is designed to increase minimum prices are established and WASHINGTON — The national had a weighted average advertised demand for dairy products when dairy payment is made, IDFA notes. weighted average advertised price for price of $3.95, down from $5.30 two farm profi tability, as measured by the IDFA also says the program should national conventional butter in 1-pound weeks earlier but up from $3.81 one calculated dairy margin, is catastrophi- not support any single dairy product or backs fell 19 cents to $3.63 in the latest year earlier, while 2-pound blocks had retail reporting period, down from $3.82 a weighted average advertised price Entry information for U.S. Championship two weeks earlier but up from $2.37 one of $7.83, down from $8.45 two weeks year earlier, says USDA’s Agricultural earlier but up from $6.91 one year ago, Cheese Contest is now available online Marketing Service (AMS) in its latest AMS says. biweekly National Dairy Retail Report Meanwhile, this week natural vari- MADISON, Wis. — Complete entry Online entry will be available begin- released this week. eties of 8-ounce cheese shreds had a information for the 2015 U.S. Cham- ning Dec. 3 via MyEntries, the online AMS says national conventional weighted average advertised price of pionship Cheese Contest is now avail- entry feature of the U.S. Championship varieties of natural cheese in 8-ounce $2.56, up from $2.46 two weeks earlier able online at uschampioncheese. Cheese Contest. MyEntries is a personal, blocks this week had a weighted aver- and $2.22 one year earlier, AMS says. org. The contest will be held March secure contest worksite which includes age advertised price of $2.61, up from One-pound shreds had a weighted 17-19 at the Wisconsin Center in online entry, permanent storage of each $2.41 two weeks earlier and $2.51 one average advertised price of $4.00, Milwaukee. year’s entries, instant product scores year earlier. down from $4.98 two weeks earlier New for 2015, the U.S. Championship and scoresheets. This week 1-pound cheese blocks but up from $3.55 one year ago. CMN Cheese Contest will include yogurt. Online entries will receive a $10 per Six yogurt classes have been added to entry discount. All entry forms and fees refl ect the growth of this sector of the are due Feb. 18, 2015. dairy industry, says Jane Cisler, contest The 2015 U.S. Championship Cheese manager. Contest, hosted by the Wisconsin “The United States Championship Cheese Makers Association, will feature Cheese Contest is always growing and 90 cheese, butter and yogurt classes changing to refl ect the popular products to enter. that consumers and dairy processors Printed copies of the entry kit will care about: cheese, butter and yogurt,” no longer be mailed but are available to Cisler says. print from uschampioncheese.org. CMN USU wins IMPA’s dairy innovation contest KETCHUM, Idaho — A team of three orange cream-fl avored beverage. students and their faculty adviser from The team’s beverage is created from Utah State University received fi rst low pH whey derived from the manufac- place in the Idaho Milk Processors As- ture of Greek yogurt. Currently, there sociation’s (IMPA) annual New Product are no other brands of cream sodas Innovation Contest. The contest is that contain dairy products, according sponsored by IMPA and the United to the students. Dairymen of Idaho. Third place in IMPA’s New Product The fi rst place product, named Quick Innovation Contest was awarded to Sour, was submitted by Kari Olson, Bringham Young University’s Robert BRINE Xiaoxi Wang and John Solorio of Utah Peterson, Barbara Clark, Cameron State University along with their faculty Bardsley, Dan Newbold, Jacob Foist, adviser, Dr. Marie Walsh. The team was Jenny Zhang, Kyle Hokanson, Seth SYSTEMS awarded $10,000, half of which will be al- Ellswork, YaYa Wong and Kaitlyn Bury, located to the university and half will be along with advisers Dr. Mike Dunn and dispersed amongst the three students. Dr. Michelle Lloyd, for their single-serve, Static, Dynamic, Gantry Crane, Quick Sour is a packet of dried acid shelf-stable, ready-to-eat cold breakfast and Intelligent Brining Systems whey that includes a recipe, allowing cereal with dried milk. for consumers to quickly, easily and By adding cold water and shaking Offering the most efficient cooling and economically make their own sourdough the single serving of dried cereal, it uniform salt uptake methods available, our brine systems meet the challenge bread, according to the students. is a ready-to-eat, nutritious breakfast, of efficient brining with pre-fabricated They projected Quick Sour would according to the team, who garnered technology and cost-saving features. be marketed for the Baby Boomer $3,000 for its efforts. generation. The winners for IMPA’s New Product Taking second place was Alex Innovation Contest were announced Meldrum and Shiloh Mangan from the by Alan Reed, Reed’s Dairy, during the University of Idaho and faculty adviser annual IMPA awards banquet. FOR MORE INFORMATION, VISIT US ON THE WEB AT www.johnsonindint.com Michael Costello from Washington State The contest is open to any university University. The team was awarded and will be held Aug. 13 next year. For more $5,000 for its sweetened, carbonated, information go to www.impa.us. CMN For more information please visit www.johnsonindint.com © 2014 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 6 CHEESE MARKET NEWS® — November 14, 2014 NEWS/BUSINESS

Mercy For Animals’ undercover video shows abuse on Birnamwood, Wis., dairy farm GREEN BAY, Wis. — Hidden-camera with ropes attached to tractors. outraged and deeply saddened by the dairy suppliers, including zero tolerance video footage from Mercy For Animals In a statement, Hiram, Ohio-based mistreatment of animals shown in the for kicking, punching, and shocking (MFA), recorded at Andrus Dairy in Great Lakes Cheese says it purchases video release by MFA.” cows; requiring suppliers to provide a Birnamwood, Wis., a milk supplier to a miniscule amount of cheese from The video was recorded between safe, clean, and sanitary environment Mullins Cheese, which subsequently Mullins Cheese, Mosinee, Wis., which July 19 and Aug. 22 and MFA brought for cattle; and the installation of video sells cheese to Great Lakes Cheese, obtains a small portion of its milk from the matter to law enforcement before monitoring systems that live stream to shows workers kicking and punching Andrus Dairy. publicly releasing the video. online to help deter abuse. cows, cutting off their tails with prun- “Great Lakes Cheese cares deeply Scott Niemi, assistant district at- “No socially responsible corpora- ing shears, shooting them in the face about the health and wellness of animals torney of Wisconsin’s Shawano and tion should support dairy operations and nostrils with high-pressured water on the farms that supply milk to make Menominee Counties, issued a notice that beat, kick, shock and drag hoses and dragging them by their necks our cheese,” the company says. “We are of no prosecution Oct. 30. Niemi rec- animals. Due to its complete lack of ommended that Alan Andrus, owner of meaningful animal welfare standards, Andrus Dairy, be notifi ed of the issues Great Lakes Cheese has allowed a 3-A Sanitary Standards releases general at his farm. culture of cruelty to fl ourish in its standard for dairy processing equipment “I would also inform him (Andrus) cheese supply chain,” says Nathan that he can fi re or retrain his employees Runkle, president, MFA. MCLEAN, Va. — 3-A Sanitary Stan- founding members of the 3-A program but his farm will be inspected by some- Great Lakes Cheese says that dards Inc. (3-A) recently released a new and develops industry positions on 3-A one at some time in the future and any although it does not have a direct rela- American National Standard that will standards through its 3-A User Task abused noted will be attributed to him tionship with Andrus Dairy, it expects serve as a general standard establishing Force. as he has been warned of the issues,” its entire supply chain to meet its the minimum sanitary requirements for “It will be imperative for dairy Niemi says in the notice. established animal welfare policies, the design, materials, fabrication and product manufacturers to engage and MFA is calling on Great Lakes to and it has advised Mullins Cheese installation of food processing equip- provide input into this alignment pro- immediately adopt animal welfare it will not accept any cheese made ment and systems. cess to ensure that the requirements guidelines and oversight for all of its with milk from Andrus Dairy. CMN Individual equipment standards are practical and science-based,” says previously developed by 3-A for various John Allan, vice president of regulatory fi ttings, pumps, pasteurizers and other affairs and international standards at processing equipment still remain in IDFA, and member of the 3-A board of effect. As a next step, 3-A plans to align directors. “I encourage members to join these individual equipment standards IDFA’s 3-A Users Task Force to help us with the new general standard, which coordinate positions on draft standards LUCEY success for the U.S. dairy industry. is a task that could take several years among dairy processing companies Creating new products for both do- to complete. Several 3-A working groups that purchase and use 3-A-certifi ed Continued from page 4 mestic and export markets will mean will begin tackling this process during equipment.” investing in new equipment such as the coming year. For more information or to down- From fl avor research and aseptic bev- indirectly heated spray dryers, bever- The International Dairy Foods load the new standard visit www.tech erage work to high-protein products age innovations utilizing aseptic/UHT Association (IDFA) is one of the fi ve street.com/3a/products/1883380. CMN like Greek yogurts, research and de- technologies, etc. as well as having velopment really holds the key to dairy common sense regulations in place. Danone acquires stake in China’s Yashili industry growth. Fluid milk and milk- If we work together and invest in our based beverage sales also need to play future, then I am confi dent that the PARIS — Danone, China Mengniu strengthening the winning team formed a role in this growth, and the recently industry will continue to innovate and Dairy Company Ltd. (Mengniu) and Yas- by Danone and Mengniu by acquiring announced partnerships between succeed in supplying consumers world- hili recently announced that they have an equity stake in Yashili and combin- Dairy Management Inc. and seven wide with the healthy and delicious signed an agreement allowing Danone ing Mengniu’s wide-reaching network companies (including The Coca-Cola products they desire. CMN to take part in a private placement by in China with Danone’s international Co.) are a positive step toward ignit- Yashili totaling 437 million euros (ap- expertise in infant milk products,” says ing innovation in this category. The views expressed by CMN’s guest proximately $547 million) — a price of Emmanuel Faber, CEO, Danone. “I am Growth will require ongoing prod- columnists are their own opinions 3.70 Hong Kong dollars ($0.48) per share. delighted with this transaction and am uct research, marketing and collab- and do not necessarily refl ect those of The transaction will give Danone confi dent in our ability to grow all of our orative efforts to ensure continued Cheese Market News®. an equity stake of 25 percent in Yashili, brands in the Chinese market.” a large infant milk company in China. Danone’s acquisition of an eq- As part of the agreement, Danone will uity stake in Yashili is subject to the recommend candidates to serve as approval of the company’s sharehold- Best of all, with China, we have a Yashili’s CEO. ers and relevant authorities. It is CHRISTIESON chance to shape the market. In other “Building on our successful coopera- expected to be fi nalized in the coming Continued from page 4 major cheese buying countries like Ja- tion in fresh dairy products, we are today months, according to Danone. CMN pan and South Korea, the United States traditional Chinese dishes, as well was the second or third supplier to enter as introduce iconic American dishes the market. We had to claw back share that can help make the United States from established suppliers who dictated synonymous with cheese: New York desirable cheese traits by virtue of their cheesecake, Chicago-style pizza, early engagement. In China, the United Idaho potato skins. We can own those States is in on the ground fl oor. CMN names as well as the supply chain for companies making them. Note: The U.S. Dairy Export Council Consumers too have a thirst for is primarily supported by Dairy Man- knowledge, and in the case of retail, agement Inc. through the producer check- promotion equals education. off that builds on collaborative industry China is a rapidly growing cheese partnerships with processors, trading importer, and we can help them grow companies and others to enhance global even faster. Every end-user I’ve spoken demand for U.S. dairy products. with has expressed strong interest in reliable U.S. suppliers. They are seri- The views expressed by CMN’s guest ous. They know they will not get all columnists are their own opinions the cheese they need from Oceania in and do not necessarily refl ect those of For more information please visit www.devilletechnologies.com the future. Cheese Market News®. © 2014 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) November 14, 2014 — CHEESE MARKET NEWS® 7 CHEESE MARKET NEWS® Retail WATC H NEWS & MARKETING IDEAS TO HELP SELL MORE CHEESE Italian heritage, focus on quality products set Lioni Latticini apart

By Kate Sander in retail cups. Product sizes include perline (1 gram), perle (4 grams), noc- UNION, N.J. — Making traditional fresh cioline (9 grams), ciliegine (13 grams), Mozzarella isn’t about profi t margins at bocconcini (1.5 ounces) and ovoline Lioni Latticini Inc. -— it’s about making (4 ounces). The company’s products products that are true to tradition and also include smoked Mozzarella, Moz- quality-focused. zarella medallions and handmade rolls Operated by the Salzarulo family, of fresh Mozzarella that blend fi ne Ital- Lioni Latticini is the outgrowth of tra- ian prosciutto. In addition, the com- dition that began in the town of Lioni, pany makes fresh Ricotta and imports Italy, many decades ago. In 1980, the Mozzarella di Bufala and other Italian Photo courtesy of Lioni Latticini family brought its art of cheesemaking to items including fresh pasta, olive oil FRESH PRODUCT — Lioni Latticini offers more than 40 styles and sizes of fresh Mozzarella Brooklyn, N.Y., when Giuseppe Salzarulo, and tomatoes directly from Italy. and other fresh Italian cheeses. It works closely with its customers to ensure only the who had lived in the United States for a Most recently, the company has highest-quality products make it to consumers’ mouths. few years, joined forces with his nephew added its own handmade Burrata Con Salvatore Salzarulo, who had recently Panna, a cheese that has an outer shell immigrated, to make the fresh, whole of solid Mozzarella while the inside Earlier this year, the company’s Ovo- at the competitors. They admire them, milk Mozzarella they knew so well. contains both Mozzarella and cream. line Fresh Mozzarella won second in but they say, ‘That’s not who we are,’” Originally the product was imported by the Fresh Mozzarella class in the World Conforte says. “They don’t see them as Lioni Latticini from Italy, but consumer Championship Cheese Contest. competitors; there’s room in the mar- interest and a desire to try something “It is an overwhelming satisfaction ket for multiple companies. Instead, new led the company to begin making to produce a product which is notably they compete with themselves.” “My uncle and its own handcrafted product. accepted and recognized in the Ameri- That business model appears to my father breathe The cheese, introduced about three can culture as well as in the dairy in- have served them well. Within the past years ago, has been a success, starting dustry,” Conforte says. three decades, the Salzarulos have and embrace with a gold medal in the 2012 World “It’s a healthy thing and it is validat- transformed their small neighbor- their Italian tradition.” Cheese Awards. ing for the company, but more impor- hood, family business into a nationally “Much has resulted from that,” says tantly our motivation is to stay true to renowned manufacturer and distribu- Teresa Salzarulo Conforte Lori Church, director of sales and mar- our roots,” Church says of the decision tor of fresh Mozzarella in the United to enter competitions. States. LIONI LATTICINI INC. keting, Lioni Latticini. Following the win, the company During the last few years, the com- The company outgrew its Brooklyn, steadily converted all of its customers pany also has updated its packaging N.Y., facility in the early part of the cen- from the imported Burrata to the do- tury, ultimately necessitating a move mestically-produced cheese, she says. to its current plant in Union, N.J., in “My uncle and my father breathe Entering competitions is a newer 2001. The site, which is 100,000 square and embrace their Italian tradition,” kind of experience for Lioni Latticini. feet, allows room for the company to says Teresa Salzarulo Conforte, direc- When Church joined the company “Our Mozzarella maintain steady annual growth. The tor of operations and Salvatore Salza- several years ago, she and Conforte, is meant to be eaten company also continues to operate a rulo’s daughter. “In so doing, they have alongside Conforte’s cousin, Andrea, wholesale warehouse in Brooklyn, N.Y. passed their beliefs and cheesemaking began working as a team on develop- fresh as in the days While maintaining its old Italian practices to the next generation. They ing a marketing plan that would bring of old, sharing values and traditions, the company take pride in perfecting and delivering a little more awareness of the company utilizes modern technology and com- that simple food ingredient that they to potential customers. in my family’s beliefs puter-monitored equipment imported know as the Mozzarella. “They have operated under the of delivering a from Italy and is fully HACCP com- “Everything is done from the heart,” radar,” Church says of the company. pliant. In 2011, the company also up- Conforte adds. “It’s a lifestyle for them. “They do business from the heart, not traditional fresh product graded its Union, N.J., facility to utilize They want customers to experience to bring attention to themselves, but as we know it to be.” solar power. what we have in our own homes. for the product to stand out to consum- From starting out in 1980 making “They want to maintain quality and ers.” 100 pounds of cheese a week, Lioni Lat- Teresa Salzarulo Conforte freshness and bring the richness of Ultimately, the company decided ticini now has more than 60 employees Italian cooking they have always known to enter a contest to see what would LIONI LATTICINI INC. and makes 15 million pounds of cheese to the consumer — always striving for happen. Since then, they have entered annually. Each Monday night, the com- product excellence,” she says. others, and 2014 has proved to be a pany’s employees also prepare to ship Lioni Latticini offers more than 40 particularly successful year, with Lioni the fresh buffalo’s milk product that styles and sizes of fresh Mozzarella and Latticini’s traditional Fresh Mozzarella and artwork and developed a new web- was made just 48 hours earlier and im- other fresh Italian cheeses, including (Ciliegine in Water) receiving fi rst site. However, the core focus of doing ported via airfreight from Italy. their classic fresh Mozzarella hand- place in the Fresh Mozzarella category what they do because they are good at Though its products are most well wrapped in logs and braids, fresh Moz- at the World Dairy Expo Championship it — and enjoy it — hasn’t changed. known on the East Coast, Lioni Latticini’s zarella in water and fresh Mozzarella Dairy Product Contest this summer. “My dad and uncle don’t even look Turn to LIONI, page 9 a

Also in Retail WATCH: ‘What’s In Store’ looks at trends … Page 8 Jarlsberg adds snack-sized minis … Page 10

© 2014 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 8 CHEESE MARKET NEWS® — November 14, 2014 RETAIL ROUND-UP What’s In Store 2015: Consumers seeking bold, aged fl avors, transparency in labeling MADISON, Wis. — Today’s consumers cheese was the highest-selling cheese volume at retail, for the 52 weeks ended options, to healthy on-the-go snacks, to are seeking bold, aged fl avors in cheese, form, accounting for 30.6 percent of sales, June 15, 2014, were Pimento, Mascar- global ethnic fl avors, the report says. but they also want clean labels and to up from 29.8 percent the previous year. pone, Colby blend, Queso Quesadilla/ According to the report, the top three know where their cheese is from, accord- The second best-selling form was sliced Chihuahua and Queso Panela. products for total retail sales by category ing to “What’s In Store 2015,” the latest cheese, down slightly at 27.2 percent, Most consumers (73 percent) believe in the dairy department include milk edition of the annual trends publication while chunk and loaf comprise the next that natural cheese is healthier than ($17.7 billion), cheese ($16.7 billion) of the International Dairy-Deli-Bakery largest categories at 17.3 percent and 9.2 processed cheese, the report says, and and yogurt ($6.9 billion). Association (IDDBA). percent, respectively. 55 percent of consumers view cheese as Growth projections are strong for the Millennials are a key demographic for Shoppers, especially Millennials, an inexpensive form of protein. spoonable yogurt category, the report specialty cheese, the report notes. They are increasingly looking for cheeses Highlighting cheese’s protein content notes. Expected growth is more than 20 like experiential shopping experiences that incorporate a wide spectrum of can further position it as a part of a percent through 2018 to $63 billion in and are adventuresome consumers when textures, fl avors and format that refl ect healthy diet, the report notes. sales globally. it comes to new cheeses. their globalized palate, the report notes. Protein also is a buzzword in the dairy IDDBA notes that fi ndings from an According to the report, in the United IDDBA says that according to Allen department, as 71 percent of consum- Innovation Center for U.S. Dairy study, States, the cheese category is positioned Hendricks, vice president of foodservice ers report that they are seeking dairy “The Future of Dairy,” says that political, to grow 25 percent through 2018 to more and education for the Wisconsin Milk products for their protein needs, the economic and supply uncertainty are than $27 billion. Marketing Board, Millennials are enticed report says. leading to a shrinking middle class, and At retail, the dairy department contin- by more variety but want smaller portions Dairy is one of the most frequented this decline will drive a reduction in ues to lead the way as the top location of as they are experimental shoppers who perishable departments in the store, the mid-priced brands and retailers. Dairy cheese sales, accounting for more than like to take risks in selecting cheese. report adds. Consumers average 35 trips producers and retailers will need to two-thirds of cheese sales, the report Consumers continue to seek new to the department per year, and dairy address the new markets (high-end and says. The deli service counter is the experiences and options to entertain represents the second-largest category low-end) and better meet the needs of next biggest sales area at 12.8 percent. at home with cheese, the report says. for private label products. consumers’ new defi nitions of value. The specialty case/island in the deli ac- Cheesemakers are continuing to fi ll those Dairy products align with many con- To order a copy of the re- counts for 12.6 percent of sales, followed needs with robust fl avors and unique sumer macro trends — from indulgent port, visit www.iddba.org. CMN by the deli self-service sliced case at 6.2 products. percent of sales. Specialty cheese continues to grow at IDDBA says that according to Jim the service deli, the report notes. Sales Byrne Dairy goes Greek, has plans to expand Dimataris, director of processor relations were up 3.2 percent for the 52 weeks CORTLAND, N.Y. — Byrne Dairy, a “This is the nearby brand, so when for the California Milk Advisory Board, ended March 29, 2014, and specialty producer of milk, ice cream, cream and men and women buy this yogurt, they are natural shreds and slices continue to lead cheese accounts for nearly two-thirds other dairy products, entered the Greek supporting regional farmers,” says Kate the growth of the category, and the key is of deli cheese sales. yogurt industry recently, making its own Byrne, promoting director, Byrne Dairy. selection, with blends leading the charge. IDDBA notes that according to IRI brand of strained yogurt for the fi rst time. Since June, the plant’s production According to the report, in the 52 and Dairy Management Inc., the top Byrne began creating Greek yogurt already has more than tripled. It is pro- weeks ending June 15, 2014, shredded fi ve fastest-growing natural cheeses by for its private label customers at its new ducing nearly 200,000 pounds of yogurt $30 million, 75,000-square-foot plant per week. The facility has the capacity opened in June, but now it is launching to produce 520,000 pounds per day. its own brand. The company is in the process of Byrne Hollow Farm Greek Yogurt creating a visitor center and inviting comes in six fl avors — black cherry, the public in for guided tours to see how blueberry, peach, pineapple, raspberry yogurt and cheese are produced. Guests Quality and strawberry, and initially hit Byrne’s also will be capable to sample the plant’s 53 retail shops in central New York. merchandise at the center, which should You Can Trust. Also, it is available at Tops Friendly be open in a year. Markets, Wal-Mart and many indepen- For more information visit Innovation dent grocers. www.byrnedairy.com. CMN You Can Taste. Celebrating Successful USOC, Chobani renew partnership to 2020 Partnerships for 60 Years! COLORADO SPRINGS, Colo. — The nership with Chobani in 2012, represent- Introducing our U.S. Olympic Committee (USOC) and ing a new category in its roster. In 2014, Newly Expanded Chobani recently announced a long-term Chobani packaging featured winter sport Glacier Ridge FarmsTM Line: partnership through 2020. Through this icons with the tagline, “naturally power- • Handcrafted In America’s Dairyland partnership extension, Chobani will ing Team USA.” Through the terms of the • Naturally Smoked Cheeses serve as the offi cial yogurt provider to new agreement, Chobani will continue • Gourmet Spreadable Cheeses & Dips Team USA for the 2016 Olympic and to carry the Team USA logo through the • Smokey Bars/Snack Wedges • Variety of Flavors Paralympic Games in Rio de Janeiro, 2020 Olympic and Paralympic Games. the 2018 Olympic and Paralympic Winter “Our partnership with Team USA FOODSERVICE In Perfect Shape For a Growing Industry Games in Pyeongchang, South Korea, couldn’t be a more natural fi t, and we’re ■ Creative blend of vision and flexibility and the 2020 Olympic and Paralympic extremely proud to continue helping ■ Unique product offerings Games in Tokyo. these athletes on their journeys for gold,” ■ Naturally smoked cheeses tailored to fit every SQF Level 3 Certified packaging configuration “Chobani has served as an important says Peter McGuinness, chief market- This certification ensures our ■ customers that our cheese products Extensive single serving/portion-controlled sizes addition to our roster of partners, and we ing and brand offi cer, Chobani. “Like have been produced and handled in accordance with the highest standards PRIVATE LABEL are thrilled the company will remain in the athletes and teams we’re naturally set by the Food Marketing Institute (FMI). Build Your Brand With Quality You Can Trust the USOC sponsor family through 2020,” powering, we strive to deliver our best ■ Expansive array of custom formulations ■ Innovative packaging solutions says Lisa Baird, chief marketing offi cer, each and every day.” ■ Ability to drive new sales USOC. “Through its ongoing commit- A wide range of Chobani products RETAIL HOUSE BRANDS ment to creating healthy products and will continue to be made available to Diversify Your Product Portfolio With Our Proven Winners promoting healthy lifestyle choices, athletes living or training at the U.S. ■ Unique flavor profiles Chobani has been an integral partner in Olympic Training Centers in Colorado ■ Market versatility to maximize sales performance our mission to support the competitive Springs, Colo., Chula Vista, Calif., and ■ Price competitiveness & in-store support ■ Low minimum order quantities aspirations of current and future Team Lake Placid, N.Y. In addition, USOC di- Call us today for details: USA athletes, many of whom include etitians and culinary teams will continue 2819 County Road F • Blue Mounds, WI 53517 Chobani in their diets and training to work closely with Chobani to incor- Ph: (608) 437-5598 • Fax: (608) 437-8850 regimens.” porate the high-protein food into pre- [email protected] • www.dairyfoodusa.com The USOC fi rst announced its part- competition and training menus. CMN For more information please visit www.dairyfoodusa.com © 2014 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) RETAILING PERSPECTIVES November 14, 2014 — CHEESE MARKET NEWS® 9 LIONI works closely with all of its customers, making cheese fresh to order. Continued from page 7 “We work with distributors to deter- mine their needs, with a strong emphasis cheese is now shipped to more than 35 placed on pre-ordering and pre-selling,” states around the nation via refriger- Church says. ated trucking. In addition, each year the company The company’s products have a evaluates those needs to ensure that shelf life of 3 weeks, which means they are supporting their customers ef- getting the cheese into the mouths of fectively. consumers in a timely fashion is of the “We evaluate the key issues and how utmost importance. we can help them grow,” Church says, adding that the company also works with retailers and distributors on offering demos and product specials. Photo courtesy of Lioni Latticini “My uncle and father embrace every AWARD-WINNING BURRATA — Three years ago, Lioni Latticini added its own handmade “We work with relationship,” Conforte adds. “These are Burrata Con Panna, a cheese that has an outer shell of solid Mozzarella while the inside distributors to the relationships that sustain our busi- contains both Mozzarella and cream, to its line up. The cheese won a gold medal in the 2012 World Cheese Awards. determine their needs, ness. We don’t compromise on quality. We want to know where our product is sold with a strong emphasis and how it is being used.” on pre-ordering Sixty percent of the company’s cheese along with herself, how to carefully build part of the Lioni philosophy and proves to is sold at retail— with a small portion of the company. “Mozzarella is our family’s be truly effective in our daily approach.” and pre-selling.” that being private label — and the other passion and the heart and soul of our “Product line growth only comes 40 percent is sold for foodservice. business.” when management believes it’s ready; Lori Church As a non-family member working for Strong relationships within the com- we strongly encourage a slow and steady LIONI LATTICINI INC. the company, Church says it is very clear pany — not just with customers — are growth,” Conforte says. what Giuseppe and Salvatore Salzarulo crucial. “They want to perfect what we have,” put into the company. “We treat every employee as a fam- she says, noting the company’s prior- “As a family business, they are always ily member,” Conforte says, adding that ity is always to keep up with demand hands on,” she says. the older generation doesn’t just tell the and maintain quality before adding “Our Mozzarella is meant to be Conforte says that her uncle, father younger generation how to manage — new products. “It is important to keep eaten fresh as in the days of old, shar- and mother, Michelina, who manages they live it. the core simple. Especially in today’s ing in my family’s beliefs of delivering a the distribution business in Brooklyn, “It is like being part of a family,” growing marketplace — there is no traditional fresh product as we know it N.Y., are teaching the younger genera- Church agrees. “It’s a beautiful thing to room for mediocrity — when you to be,” Conforte notes. tion, which includes her cousins Andrea see, even from the outside looking in. taste the fl avor and the essence of our To achieve this, Lioni Latticini and Salvatore and her brother Giovanni, Teamwork and communication is a key cheese, you never forget it.” CMN

Kraft Hockeyville launching search for America’s most passionate hockey town

NORTHFIELD, Ill. — For the first relationship in Canada and expand our time, Kraft’s Hockeyville program in partnership with Kraft to the United Canada is expanding to the United States where together, through Kraft States. Hockey towns in the United Hockeyville, we can celebrate the States can enter for a chance to win a passion American communities have $150,000 arena makeover courtesy of for our sport at all levels and reward Kraft, have an NHL preseason game their passion with an unforgettable played in its local arena showcased experience as we bring an NHL pre- on TV and earn the title “Kraft Hock- season game to the winning community eyville 2015.” next fall.” In Canada, Kraft Hockeyville has This marketing program will in- awarded more than $1.6 million towards clude TV, digital and in-store media local hockey arena upgrades to more support. Many U.S. retailers activate than 40 communities over the last eight in-store promotions during hockey years. season. The participating Kraft “We are thrilled to bring Kraft brands will include A.1., Bulls-Eye Hockeyville to the States and lever- BBQ Sauce, Cracker Barrel, Jell-O, age the scale of our portfolio to help Kraft Mac & Cheese, Kraft Mayo, support hockey at the local level,” says Kraft Natural Cheese, Kraft Salad Dino Bianco, executive vice president Dressings, Kraft Singles, Maxwell and president, Kraft Beverages. “As House, Miracle Whip, Oscar Mayer, a lifelong hockey player myself, I Philadelphia, Planters, Stove Top know that the bonds families form and Velveeta. through local sports make our com- In addition to Kraft Hockeyville, the munities stronger. That is why Kraft newly expanded agreement makes Kraft Hockeyville is not just an investment an offi cial sponsor of the NHL and the in local hockey rinks but in building NHLPA in North America and an Offi cial better communities.” Partner of the NHL Winter Classic, NHL Kraft Hockeyville will now bring to- Stadium Series, NHL All-Star Game, NHL gether NBC Sports Group, the National Heritage Classic, NHL Face-Off and the Hockey League Players’ Association Stanley Cup Playoffs. (NHLPA), the National Hockey League Nominations for the U.S. Kraft (NHL), and USA Hockey. Hockeyville open Jan. 1 during the “Kraft has been an instrumental Bridgestone NHL Winter Classic featur- partner in our efforts to grow the ing the Chicago Blackhawks and Wash- game,” says John Collins, COO, NHL. ington Capitals. For more information “We’re thrilled to continue our 30-year visit www.krafthockeyville.com. CMN For more information please visit www.lionimozzarella.com © 2014 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 10 CHEESE MARKET NEWS® — November 14, 2014 THE CHEESE TABLE

Cuisine Adventures launches its Fruit & New line of four Mexican-style Shredded Cheese Phyllo Collection for the holidays Cheese Blends being offered by Cacique MONTREAL — Cuisine Adventures, a Phyllo Collection is available seasonally CITY OF INDUSTRY, Calif. — Cacique for truly authentic Mexican-style cheese frozen food brand created and marketed at Midwest Costco locations until De- Inc. recently announced the launch of blends, says Tirso Iglesias, vice president by Plats Du Chef, has announced the cember. It will be available in Illinois, a new line of Mexican-style Shredded of sales and marketing, Cacique Inc. launch of its new Fruit & Cheese Phyllo Iowa, Ohio, Wisconsin, Kentucky, Min- Cheese Blends. The four new varieties “American consumers have realized Collection. nesota, Michigan, Indiana, Nebraska include Four Quesos Blend, Dos Que- that the so-called ‘Mexican-style cheese The snack collection features three and Missouri for the retail price of sos Blend, Queso Quesadilla Shredded blends’ they’ve been buying are usually fruit and cheese combinations wrapped $12.99. Cheese and Queso Cotija Grated Cheese. fi lled with inauthentic cheeses like Ched- in a light and fl akey phyllo pastry. The The company says the collection Cacique says its expert cheese-makers dar, Colby or Jack,” Iglesias says. “Buyers three combinations are Apple & Ched- works perfectly for a cocktail party and crafted each blend to offer the perfect of shredded cheese deserve a product that dar, Cranberry & Brie and Mango & paired with wine. balance of authentic fl avor and taste us- is 100 percent auténtico, and we’re proud Goat Cheese. The handmade, vegetarian For more information or wine ing the company’s traditional recipes and to offer authentic Mexican-style blends pastries do not have artifi cial fl avors pairing suggestions visit www.cui- preparation methods. These new blends that feature cheeses like Cotija, Asadero, and the collection is packaged with sineadventuresfoods.com, www. will further expand Cacique’s selection Manchego, Quesadilla and Oaxaca.” 36 pieces. facebook.com/PlatsduChefFoods or of products designed for home-cooked Cacique also is inviting cheese lovers Cuisine Adventures’ Fruit & Cheese twitter.com/CuisiAdventures. CMN Mexican cuisine and give customers the everywhere to explore Cacique’s new option to pair convenience in the kitchen products via the company’s website at Jarlsberg adds snack-sized minis to line up with 100 percent authentic ingredients. http://caciqueinc.com/queso-iq. Cacique’s newest product line was For more information, visit www. DARIEN, Conn. — Jarlsberg Cheese, categories, not just dairy, so we expect created in response to customer demand caciqueinc.com/products. CMN has introduced its Jarlsberg Cheese to see marked growth. Additionally, Minis, a snack-sized cheese wheel. we have a population that is continu- Available in 5-count bags for indi- ally focused on health and smaller Alouette debuts cranberry apple spreadable vidual sale or in bulk, Jarlsberg Cheese portions of the foods they like best, so cheese, Brie fondue for the holiday season Minis are available in a display-ready Jarlsberg Cheese Minis will facilitate case for immediate placement, the this growth.” NEW HOLLAND, Pa. — Alouette Cheese $4.99. The product is available through company says. Jarlsberg says each 20-gram Jarls- USA recently added two new products to its December. “We anticipate new Jarlsberg Cheese berg Cheese Mini is 70 calories and is lineup for the holiday season — Cranberry Alouette Brie Fondue is a 4-minute Minis driving incremental in-store a good source of calcium and protein. Apple Spice Soft Spreadable Cheese and microwavable fondue featuring Brie, white sales by bringing a well-recognized Jarlsberg Cheese Minis also are avail- Brie Fondue. wine reduction and spices for a creamy tex- premium brand into everyday snacking able in a 30-count display ready case Cranberry Apple Spice Soft Spreadable ture ideal for dipping, company offi cials say. occasions,” says Deborah Seife, general as well as a 50-pound bulk case. Cheese features a blend of cranberries, The product is available in 11 ounces with marketing manager, Jarlsberg Cheese. For more information visit apples and cinnamon for an ideal comple- a suggested retail price of $7.99. Alouette “The mini concept is growing across all www.jarlsberg.com. CMN ment to favorite holiday foods, Alouette Brie Fondue is available through February. Cheese offi cials say. Alouette Cheese notes these items Alouette Cranberry Apple Spice Soft join Pumpkin Spice and Vanilla Bean Spreadable Cheese is available in a 6-ounce Cheesecake Soft Spreadable Cheeses for container with a suggested retail price of the 2014 holiday product line up. CMN Yancey’s Fancy introduces award-winning Grilled Bacon Cheeseburger Cheddar cheese CORFU, N.Y. — Yancey’s Fancy’s Grilled Fancy, and this new product is the result Bacon Cheeseburger Cheddar hit the mar- of some truly gifted cheese masters,” says Horizon Sales ket last month, fi rst introduced at trade Mike Wimble, executive vice president We specialize in using shows this summer. The company says of sales and marketing, Yancey’s Fancy. of Minnesota our extensive network consumers no longer need to add cheese “Their ability to come up with an idea and to find a home for your to burgers with its newest Cheddar fl avor, execute it never ceases to amaze.” Can Provide excess inventory and because it can add the burger to any dish. Yancey’s Fancy says its new Cheddar finding ingredients for your production needs. The new fl avor was awarded with a is well-suited for a panini, a twice baked All Your Dairy gold medal at the New York State Fair potato, a cheese dip or a classic grilled We handle all shipping Cheese competition. cheese sandwich. Ingredients and can rework and repackage. “We’ve always been proud of the in- For more information visit novation of our team here at Yancey’s www.yanceysfancy.com. CMN and Sell All No quantity too large or Tillamook County Creamery introduces Your Dairy too small Products 4-Year Vintage Extra Sharp White Cheddar TILLAMOOK, Ore. — Tillamook was naturally aged over 4 years to create CHEESE Blocks and Barrels County Creamery Association has a creamy, crumbly texture with larger, “Our Team Can Trim and Fines recently released a limited edition more developed tyrosine crystals and Assist Your Team” Flavored 4-Year Vintage Extra Sharp White sharp fl avor. Process and Cheddar. Eighteen ounces of the Tillamook Imitation Tillamook says its newest addition is 4-Year Vintage Extra Sharp White BUTTER/MILKFAT its oldest Cheddar to date. Each block Cheddar retails for $7.29. CMN DAIRY POWDERS Nonfat Dry Milk Kraft reveals Philadelphia Baker’s Reserve Whey Products CALLCALLL UUSS WIWITHTH YYOUROUOUR UNUNIQUENIQQUEU SSALESALLES Milk Protein NORTHFIELD, Ill. — Kraft Foods has carob bean gum and cheese culture. AND PROCUREMENT NEEDS: Concentrate introduced a limited-edition Philadel- A 1-ounce serving contains 100 Dean Uglem [email protected] Buttermilk, Eric Kellin [email protected] Casein, Lactose phia cream cheese brick called Baker’s calories, 10 grams of fat and 2 grams of Pat Kellin [email protected] Reserve. protein. Baker’s Reserve is available over Wade Uglem [email protected] Baker’s Reserve, intended for holiday the holiday season in 8-ounce packages. 877-914-5400 horizonsalesinc.com baking and cooking, contains fi ve ingre- For more information visit dients: pasteurized milk and cream, salt, www.kraftfoods.com. CMN For more information please visit www.horizonsalesinc.com © 2014 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) RETAILING PERSPECTIVES November 14, 2014 — CHEESE MARKET NEWS® 11 Wisconsin’s Patricia Schroedl wins Cabot Farmers’ Legacy Recipe Competition in Boston

CABOT, Vt. — This month, Cabot Collection. The contest culminated with ard Stammer, president and CEO, Cabot The runner-up of the competition Creamery Cooperative named Patricia three fi nalists from across the country Creamery. “We at Cabot are honored to was Emily Paster of River Forest, Ill., Schroedl of Jefferson, Wis., the winner competing in Boston to showcase their have our products showcased as part who won a ski trip to Smugglers Notch of the Cabot Farmers’ Legacy Recipe traditional family recipes. of these recipes — as family heritage in Cambridge, Vt. Her recipe was a Competition for her White Oak Ched- “A family’s legacy is shaped in the is a key ingredient to who we are as a Cheddar Jalapeno Corn Pudding with dar, Prosciutto and Grilled Pineapple kitchen, and the recipes shared with us farmer-owned cooperative.” Blistered Tomatoes. Flatbreads with Arugula Salad recipe. as part of this contest have such great Schroedl won a $5,000 check, as Chitra Agrawal of Brooklyn, The contest is a nationwide search meaning, with many having been passed well as a $5,000 donation that Cabot N.Y. won a trip to the Trapp Fam- for the best family recipe that incor- down from grandmother to granddaugh- will make in her name to the Humane ily Lodge in Stowe, Vt., for her porates the Cabot Farmers’ Legacy ter or from father to son,” says Dr. Rich- Society of Jefferson County, Wis. Naan Breakfast Pizza recipe. CMN San Diego McDonald’s restaurants join Annie’s enters grass fed category, debuts CMAB to highlight California Grade A milk line of Organic Grass Fed Mac & Cheese SOUTH SAN FRANCISCO, Calif. — The partnership also includes dis- BERKELEY, Calif. — Annie’s Inc. including meat, dairy and yogurt. We San Diego County, Calif., McDonald’s tribution of 1.6 million milk coupons recently announced it has entered expect that they’ll be thrilled to see restaurants are joining with the Cali- for customers to save 55 cents off Real a new and growing category with a grass fed cheese in one of their favorite fornia Milk Advisory Board (CMAB) to California Milk at grocery stores or line of Organic Grass Fed Macaroni convenient meals.” highlight the certifi ed, 100 percent other retailers. The milk coupons will & Cheese. Annie’s new Organic Grass Annie’s new Grass Fed products are Grade A milk sourced exclusively from be distributed in the restaurants and Fed Macaroni & Cheese is certified available in three varieties: Organic California dairies available in the San through direct mail to San Diego County organic and made with cheese from Grass Fed Shells & Real Aged Cheddar, Diego restaurants’ Happy Meal milk jugs. residents. humanely raised cows with year-round Organic Grass Fed Shells & White Ched- The promotion, an extension of “California dairy producers are access to pasture, so consumers can dar and Organic Grass Fed Classic Mild McDonald’s “Commitments to Offer Im- dedicated to making wholesome food feel good about every bite, company Cheddar. All varieties offer 10 grams of proved Nutrition Choices,” will highlight and beverage options available to fami- officials say. protein per serving and are made with the wholesome beverage option through lies at every eating occasion,” says John “Annie’s is excited to enter the high quality grass fed cheese from Ru- point-of-sale materials at 111 San Diego Talbot, CEO, CMAB. “This partnership grass fed category with an innovative miano Cheese Co. McDonald’s locations and by featuring gives consumers access to nutrient- new line of macaroni & cheese,” says Annie’s Organic Grass Fed Macaroni the Real California Milk seal on 8-ounce rich milk from California farms when Amanda Steele, senior vice president & Cheese varieties have a suggested milk jugs sold in San Diego County. they eat out and shop for home.” CMN of marketing, Annie’s. “We know con- retail value of $3.29 per 6 ounces and sumer demand for grass fed products are currently available at Whole Foods is growing. In fact, 92 percent of An- Market nationwide. ABI hosts holiday cookie recipe challenge nie’s consumers surveyed noted that For more information, ARLINGTON, Va. — The American “Our audience is passionate about they purchase grass fed products, visit www.annies.com. CMN Butter Institute’s (ABI) “Go Bold With home baking and real, quality ingre- Butter” blog is inviting home bakers and dients,” says Anuja Miner, executive cookie enthusiasts to submit original director, ABI. “We are thrilled to launch Our Expertise in World Dairy cookie recipes this fall for a chance to our fi rst Holiday Cookie Baking Contest, win $2,000 in its Holiday Cookie Recipe and we can’t wait for consumers to share Markets Makes MCT Your Global Contest. their original holiday cookie recipes in Partner for Successful Results Now through Dec. 7, baking en- which butter plays an important role.” 3/52#).'!.$,/')34)# thusiasts can submit their recipes on A panel of expert judges will deter- 3%26)#%3 the contest entry page. Entrants must mine three winners based on use of REAL submit an original cookie recipe using butter, taste, appearance, originality and Could you use assistance in REAL seal butter. The creator of the consumer appeal. Winning recipes will managing your supply chain? fi rst place winning recipe will receive be unveiled on or about Dec. 15. We have expanded our team to $2,000, and second and third place For more information and offi cial 30%#)!,):%$&/2-5,!4)/.3 winners will receive $1,000 and $500, contest rules, visit http://goboldwith bring you unprecedented expertise respectively. butter.com/recipecontest. CMN and knowledge in today’s complex world markets. Ehrmann Commonweath Dairy to launch s3OURCINGAND,OGISTIC3ERVICES ,%!$).'3).',%3/52#% s3PECIALIZED&ORMULATIONS organic GMO-free Greek yogurt product line $!)293500,)%2 BRATTLEBORO, Vt. — Ehrmann organic vanilla quarts and wider distri- s,EADING3INGLE3OURCE$AIRY3UPPLIER Commonwealth Dairy is launching a bution. In early 2015 the company will s!GING0ROGRAMS new product line of authentic, organic, roll out a line of single-serve organic, s(EDGING3ERVICES strained Greek yogurt. The new product fruit-on-the-side fl avors. 5.0!2!,,%,%$3%26)#%3 s5NPARALLELED3ERVICES is GMO-free and probiotic, with fi ve live The milk for the company’s new s%XPERTISEINTHE'LOBAL$AIRY-ARKET organic product line is being supplied and active cultures. s%XPORT3ERVICES Ehrmann Commonwealth Dairy will from a group of small certifi ed Californian initially distribute quarts of its organic organic farms. plain yogurt at Costco in the San Fran- For more information visit www. %80%24)3%).4(%',/"!, MCT Dairies is the leading cisco region, and then expand to include commonwealthdairy.com. CMN $!)29-!2+%4 supplier of cheese and dairy ingredients, offering Greek Gods introduces new Black Cherry innovative solutions Greek-Style Yogurt in 24-ounce containers throughout the world. LAKE SUCCESS, N.Y. — Greek Gods, a requests to fruition with our new Black brand of the Hail Celestial Group, has intro- Cherry Greek-Style Yogurt. The new Black duced a new fl avor to its lineup for 24-ounce Cherry fl avor is delectable,” says Stephanos Greek-Style Yogurts. Greek Gods says Black Margaritis, national sales manager, Hain Cherry is an ideal match for its creamy, rich, Refrigerated Foods Division. “It is a great yet slightly tangy Greek-Style Yogurt and the addition to our lineup, offering a unique 0HONE OR fl avor that was added due to an increasing addition to our fruit focused fl avors.” %MAIL INFO MCTDAIRIESCOM number of customer requests for it. For more information, visit www. 7EB WWWMCTDAIRIESCOM “We are thrilled to bring our fans’ fl avor greekgodsyogurt.com. CMN For more information please visit www.mctdairies.com © 2014 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 12 CHEESE MARKET NEWS® — November 14, 2014 PEOPLE

Vanic announces retirement; Zagzebski to succeed him as CEO of Great Lakes Cheese HIRAM, Ohio — Gary Vanic an- CEO since 1999. Since joining Great “Gary brought exceptional knowledge growth and build one of the leading nounced this week that he will retire Lakes Cheese, he has overseen its of the dairy industry to Great Lakes cheese companies in America,” she adds. as president and CEO of Great Lakes growth and expansion from a $700 Cheese and a keen sense of business Zagzebski is currently chief product Cheese Co. Inc. effective May 15. The million regional manufacturer to a $3 know-how. offi cer at Great Lakes Cheese and has company’s board of directors has ap- billion national company. “We salute Gary for his 16 years of been with the company since 2003. pointed Dan Zagzebski to chief operat- “Gary’s stellar leadership has driven service to Great Lakes Cheese and will Prior to joining Great Lakes Cheese, ing offi cer, and he will succeed Vanic unprecedented momentum at Great miss his passion, candor and insight. Zagzebski co-owned Lemke Cheese and as CEO upon his retirement. Lakes Cheese,” says Heidi Eller, chair- Gary was the right person, at the right Packaging Co. Lemke was acquired by Vanic has served as president and man of the board, Great Lakes Cheese. time, to catapult Great Lakes Cheese Great Lakes in 2003. “As we look to the future, the board has every confi dence that Dan’s strategic leadership and business Comings and goings ... comings and goings ... comings and goings insight makes him the ideal succes- sor and future CEO,” Eller says. CMN Domino’s Pizza Inc., Ann Arbor, Grupo LALA, Mexico City, a nutri- tion of Katie Bergmann to senior vice Mich., has promoted Richard Allison tious foods company, has announced this president. Bergmann began with PMMI to president of its international division. week that Antonio Zamora Galland, in 2007, and most recently served as NMPF welcomes Allison previously served as executive chief fi nancial offi cer, will be leaving the director of administration, an expansion vice president of the international unit. company effective Jan. 1. Zamora has of her former role of human resources new dairy co-ops Domino’s also announced that Russell served as Grupo LALA’s chief fi nancial director. In her new position, Bergmann Weiner has been named president of its offi cer since January 2010. Grupo LALA will oversee and coordinate administra- GRAPEVINE, Texas — The National U.S. division. Weiner previously served has announced that Gabriel Fernandez tive duties for PMMI’s Arlington, Va., Milk Producers Federation (NMPF) as executive vice president and chief Ares de Parga will be appointed as the headquarters and manage all human welcomed four new dairy cooperative marketing offi cer. new chief fi nancial offi cer. Fernandez resource functions. Jim Pittas was members, two new board members Glanbia Cheese, Northwich, England, joins Grupo LALA after spending 10 years appointed senior vice president. Pittas and one new board offi cer at its recent has appointed David Giles as its new com- with Mars Inc., prior to which he served came to PMMI as director of exposi- annual meeting. mercial director. He will report to Paul for seven years at Procter & Gamble in tions in 2000, and was promoted to vice The new cooperative members are Vernon, Glanbia Cheese’s CEO. Giles will various fi nance positions. president of tradeshows in 2006. Both Bongards’ Creameries, Norwood, Minn.; be responsible for the development and Parker-Hannifin Corp., Oxnard, Bergmann and Pittas are responsible Cortland Bulk Milk Producers Coopera- implementation of the company’s overall Calif., has hired Ron Tuckner as its for the recent acquisition of Summit tive, Cortland, N.Y.; Mount Joy Farmers sales, marketing and business develop- market sales manager for separations Media Group’s digital platform and the Cooperative Association, Mount Joy, Pa., ment strategy for the sales of cheese and for its Parker domnick hunter Process expansion of the Pack Expo portfolio of and Oneida-Madison Milk Producers whey products. He joins Glanbia Cheese Filtration-North America team. Tuckner tradeshows. Cooperative Association, Sherrill, N.Y. after 2 years at Tulip Ltd., where he was is replacing Carl Crabill. Prior to joining Sargento Foods Inc., Plymouth, Wis., These new members bring the total responsible for business management Parker, Tuckner was with GEA’s Food & has appointed Jeremy Behler to vice number of dairy cooperatives in NMPF of the Tesco account, prior to which he Dairy Division for 12 years. In his career president of strategic analysis, respon- to 31. spent several years in various commercial he began as a project engineer, later sible for engaging in transformational The two new NMPF board members roles with Milk Link. advancing to hold engineering, prod- initiatives across the organization. Prior are Michael Doyle, president and CEO Mark Evans was recently appointed to uct and sales management positions. to joining Sargento, Behler served as a of Foremost Farms USA, Baraboo, Wis., chairman of the Global Cheese Awards, Tuckner earned his bachelor’s degree member of the mergers and acquisition and Scot Meyer, board member of Ells- held annually in Frome, England. Evans in mechanical engineering from the group at Procter and Gamble Co. He also worth Cooperative Creamery, Ellsworth, has worked in the food industry for 25 University of Minnesota. held roles within the strategy, fi nancial Wis. In addition, board member Keith years. He has been with Dairy Crest for PMMI, the Association for Pack- planning and analysis, operations, supply Murfi eld, CEO of United Dairymen of the past 8 years where he currently works aging and Processing Technologies, chain, sales and marketing and IT de- Arizona, was elected to serve as secre- at the Frome cheese packing site. Reston, Va., has announced the promo- partments at Procter and Gamble. CMN tary of the organization. NMPF also recognized six outgoing board members for their service to the organization and presented the NMPF Political Action Committee Award to The Standard of Excellence board member Dan Senestraro of Dairy Farmers of America. in Cheesemaking Equipment BlockBlock FormersFormers The six outgoing board members 20 - 60 poundpound receiving certifi cates of appreciation were William Blalock, Cooperative fflexibilitylexibility Block Formers Milk Producers Association; Albert Knegendorf, Ellsworth Cooperative Creamery; Dennis Donohue, FarmFirst Cheese Vats Dairy Cooperative; David Newhouse, Farmers Cooperative Creamery; Dave Cottage Cheese Vats Fuhrmann, Foremost Farms USA; and Donald DeJong, Select Milk Producers. The 2014 NMPF Communicator of Draining/Salting Belts the Year award was presented to Mi- chelle Carter, communications special- ist with Northwest Dairy Association/ Curd Tables Darigold, Seattle. The incoming 2015 Young Coopera- tor (YC) council elected its leadership Process Engineering for the upcoming year. Brian and Carrie Preston, Michigan Milk Producers As- sociation, were chosen to serve as the YC Chaircouple. Tommy and Anna Watkins, Innovative process solutions, engineered right. Southeast Milk, will serve as the YC Vice USA . The Netherlands . New Zealand / +1 (320) 231-2210 www.relco.net Chaircouple, and Donald and Bernadette Harwood, Upstate Niagara Cooperative, For more information please visit www.relco.net will be the YC Secretary Couple. CMN © 2014 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) November 14, 2014 — CHEESE MARKET NEWS® 13 CLASSIFIED ADVERTISING

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DARIGOLD misrepresents these situations in its at one of Darigold’s member dairies had amended pleading would fare any better 2010 CSR and in other publicity. sued their employer for violations of than the current complaint. The court is Continued from page 1 However, in an Order of Dismissal is- Washington’s wage and labor laws. Ruiz therefore loathe to grant leave to amend sued Nov. 3, U.S. District Judge Robert S. also alleges that she discovered that outright. Instead, plaintiffs will be given workers when they chose to purchase Lasnik rules that the plaintiffs’ interpre- unspecifi ed “questions have been raised 30 days in which to fi le a motion for leave Darigold products. tation of the CSR is unreasonable because about the treatment of workers and to amend that is supported by a proposed “Darigold markets and sells its milk Darigold acknowledges shortcomings animals at Darigold member facilities.” amended pleading. If a motion for leave and dairy products as if they were pro- and does not claim to be fl awless. Both plaintiffs stopped buying Dari- to amend is not fi led in the time provided, duced in an environment that places “While there may be one or two state- gold products and allege that they would judgment will be entered in favor of utmost care on animal health, food safety ments in the 60-page report in which not have purchased them had Darigold defendants and against plaintiffs.” and labor protections for its employees,” Darigold expresses satisfaction with been honest about the conditions in Steven Rowe, general counsel and plaintiffs say in the complaint fi led its performance and fails to explicitly which its products were produced. senior vice president of corporate af- May 5, 2014. “In reality, however, some incorporate by reference the caveats “The gist of plaintiffs’ complaint is fairs, Darigold Inc., says Darigold is very of Darigold’s milk is produced under and problems mentioned elsewhere, that the 2010 CSR misled consumers into pleased with the dismissal order and conditions where dairy cows are injured a reasonable consumer would not be believing that (a) all Darigold employees the court’s reading of the cooperative’s and sick, where despite suffering from deceived or misled into believing Dari- and all workers at the 500-plus member efforts to report on the company’s and bloody and swollen udders, cows are still gold or its member farms had a perfect dairies were treated well, with respect, cooperative’s sustainability journey. milked, and where workers are denied track record on worker rights or animal and in full compliance with the law and “This is one of the strongest dismissal the most basic labor protections, such health,” Lasnik says. (b) every cow that contributed milk to orders I’ve ever seen,” he says. “I’m as drinkable water, lunch rooms, meal The plaintiffs allege that they relied Darigold for processing was healthy,” very pleased with the court’s opinion and rest periods, and an environment on Darigold’s statements when choosing the dismissal order says. “A fair read- and that the court not only read the free of discrimination.” to purchase Darigold products. In early ing of the 2010 CSR would not support complaint but also our CSR. We’re very The plaintiffs allege that Darigold 2014, the plaintiffs learned that workers such beliefs, however, and a reasonable pleased and happy at their fi nding that consumer reading the report would not this complaint is unmerited.” be misled in the way plaintiffs allege. Mario Martinez, the plaintiffs’ attor- “The court fi nds that, as a matter ney at Marcos Camacho, A Law Corp., CLASSIFIED of law, plaintiffs’ payment for the milk Bakersfield, Calif., says consumers products consumed and Darigold’s re- across the nation have been “horrifi ed” ADVERTISING tention of that money were not unjust,” to learn of ongoing reports of animal and the order says. worker abuse at Darigold member farms. “Although plaintiffs request an “Given this increased consumer con- CHEESE/DAIRY 12 opportunity to amend if their claims cern and demand for fair treatment of • • CHEESE/DAIRY 12 are dismissed, they do not identify any workers and animals, there is a growing additional facts that could be alleged call for Darigold to work with workers to overcome the fact that the 2010 CSR and third parties to resolve this issue im- FOR SALE: WANTED cannot reasonably be read as a repre- mediately,” Martinez says. “While plain- 5 YEAR OLD TO BUY sentation that all workers and animals tiffs are disappointed with the judge’s WHITE CHEDDAR • Under Grade Dairy Powders or involved in the production of Darigold’s ruling, the ruling does not change the Blends for Feed products are treated well, with respect fact that consumers are demanding • Produced by Master • Will Purchase Retained and in compliance with all laws,” the changes from Darigold. Re-fi ling of Cheese Maker Sample Bags • Will Purchase Whirl-Pak Bags judge says. “Absent some indication of the complaint is certainly a possibility • Sufficient Quantities • No Quantity Too Large or Too Small what additional facts plaintiffs might that is being explored, as plaintiffs and Available plead to overcome this hurdle, it is their counsel strongly believe in the • Call For Pricing John Davis [email protected] very diffi cult to determine whether an claims brought before the court.” CMN (920) 878-0688 Codie Wegener [email protected] (920) 422-4767 PRICES milk powder price near $1, “it’s indica- tive of what’s happening in the milk (800) 200-6020 Call today; Continued from page 1 www.cedargrovecheese.com we build lasting powder market, and I think that will partnerships! continue to put pressure on cheese and For more information please were surprised by the timing of the butter prices as well.” visit www.cedargrovecheese.com For more information please steeper butter price drop seen last Market activity for NDM is light with visit www.mandjsalesllc.com month, but it brought more buyers back buyers not wanting to expand invento- to the market. ries in a downward trending market, “Retailers who were anticipating $3 Dairy Market News says. GOT CHEESE? butter were more interested in doing “Export demand has weakened as features and promotions with it closer global milk production and process- We purchase scrap cheese to the $2 level,” he says. ing has increased, expanding global (fish(fish bait,bait, floorfloor sweeps, etc.)etc.) forfor feed.feed. WeWe cancan pickpick upup onon aa However, he says butter has “a short supplies of competing milk powders,” spot, weekly oror monthlymonthly basis.basis. fuse” right now and could soon drop Dairy Market News says. “The market into the $1.70s. undertone is weak.” BIG REWARD OFFERED Please contact: Dorland says that, in her opinion, Dorland notes that a lot of what FOR YOUR... [email protected] CME futures are currently casting “a helped to buoy U.S. dairy prices the • Cheese Trim • Cheese Fines (866) 547-6510 rosy picture” for butter prices in the past couple of years were strong export • #1 and Undergrades months ahead compared to what she numbers. • Close Coded Products anticipates. “As we look to the fi rst quarter of • Natural, Processed, “Futures show butter in the $1.70s, 2015 and our prices compared to world Imitation or Flavored while European butter is in the $1.60s prices, we need to come down to be more Call Dean, Eric, Pat or Wade: and New Zealand is at $1.10,” she says. competitive,” she says. (877) 914-5400 “I think we can expect to move closer USDA’s Dairy Market News notes that horizonsalesinc.com www.whalenfoodsinc.com to the European price.” butter export orders also currently are Meanwhile, NDM continues a “lackluster” given higher U.S. butter For more information please weaker downward trend, perhaps the prices compared to competing global visit www.whalenfoodsinc.com commodity most in line with its global markets. counterparts. Still, while NDM at the “A key question is defi nitely whether CME was at $1.18 per pound as of Friday, we will gain back some ground on export For more information please • STORAGE 13 visit www.horizonsalesinc.com McCully notes that with the European markets in 2015,” Novakovic says. CMN © 2014 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) November 14, 2014 — CHEESE MARKET NEWS® 15 NEWS/BUSINESS

GMO increase grocery prices for consum- ers by hundreds of dollars per year as Continued from page 1 food companies are forced to construct multiple supply streams, design new voted to ban genetically engineered labels, acquire additional warehouse (GE) crops from being grown in the space and create new transportation county. routes. Colorado’s Proposition 105 would Proponents for GE and GMO la- have required food companies to label beling have appealed to FDA as well. packaged foods with the text “produced The Center for Food Safety (CFS), an with genetic engineering” if they con- environmental, non-profi t organization tained derivatives of GMO crops. The based in Washington, D.C., submitted initiative failed, with 66 percent voting a formal legal petition to FDA in 2011 against it and 34 percent in favor. demanding the mandatory labeling of According to Ballotpedia, those in GE foods, although neither proposal to support of Proposition 105 donated the FDA has seen any advance, accord- $625,968 and those in opposition do- ing to CFS. nated $12.7 million as of Oct. 27. During elections in Maui County, A similar initiative was defeated in Hawaii, voters chose — in a margin Oregon, but by a much narrower mar- barely more than 1,000 votes — to sup- gin. Oregon’s Measure 92 stated that port an initiative to prohibit the growth, food labels would need to include the testing or cultivation of GE crops in words “genetically engineered.” The Maui County until an environmental statute was narrowly defeated, with and public health study can show they 50.5 percent voting against it and 49.5 are safe. voting for the measure. CFS says opposition to the initiative In Oregon, those in opposition to was almost exclusively backed by Mon- Measure 92 donated $16.3 million, while santo Co. and Dow Chemical. those in support donated $9.0 million, “Our victory today sends a strong Ballotpedia says. message to the agrochemical industry The Grocery Manufacturers Associa- in Hawaii,” says Ashley Lukens, pro- tion (GMA) and the Coalition for Safe gram director, Hawaii Center for Food Affordable Food (CFSAF) say they are Safety. “Community members will not satisfi ed with these ballot outcomes. sit idly by and watch these companies “We are pleased that the voters of threaten the health and safety of our Colorado and Oregon both rejected people and our planet. Voters saw past •Silos these mandatory GMO labeling mea- the misleading claims of pesticide sures,” says Pamela G. Bailey, president companies like Monsanto and Dow •Processors and CEO, GMA. “These sorts of state- Chemical and demanded accountability based GMO labeling proposals would to the community.” •Horizontal Storage Tanks provide consumers with incomplete and California’s Humboldt County be- inaccurate information, only serving to came the seventh county in the state •Custom Specialty Equipment misinform and mislead them.” to vote in support of banning GE crops GMA, along with CFSAF, support the from being grown within the county. The …and More! Safe and Accurate Food Labeling Act, Humboldt County Genetic Contamina- Paul Mueller Company • 1600 W. Phelps St. • Springfield, MO 65802 which they say would eliminate con- tion Prevention Ordinance (Measure [email protected] • 1-800-MUELLER • www.paulmueller.com sumer uncertainty created by a state- P) was approved by 59 percent of ©2013 Paul Mueller Company 382-7 by-state patchwork of labeling laws, county voters, according to CFS. CMN For more information please visit www.paulmueller.com advance food safety, inform consumers and provide consistency in labeling. CFSAF provides the public with information about ingredients grown through genetic modifi cation technol- ogy. The coalition is comprised of Ameri- can farmers and representatives from a group of industry and non-governmental organizations, including the Interna- tional Dairy Foods Association and the National Milk Producers Federation. The legislation would require the FDA to approve all new GMO ingredi- ents before they are brought to market and establishes federal standards for companies that wish to voluntarily label their products for the absence-of or presence-of GMO food ingredients. “It’s time to give consumers what they deserve — a consistent, national framework for food labeling that is based on science, not politics,” says Claire Parker, spokesperson, CFSAF. “Consumers have a right to reliable information and a uniform labeling standard that is regulated by experts at the FDA.” CFSAF says studies have shown that mandated GMO labeling would For more information please visit www.ivarsoninc.com © 2014 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 16 CHEESE MARKET NEWS® — November 14, 2014 NEWS/BUSINESS

Dean Foods reports third quarter results, says challenges remain in fourth quarter outlook

DALLAS — Dean Foods Co. recently Dean Foods’ unadjusted fluid milk for the fourth quarter we expect raw and distribution costs will continue to announced its third quarter 2014 fi- volumes declined 1 percent on a year- milk costs will remain stubbornly high decline and flatten from a year over nancial results. over-year basis. The third quarter vol- despite continued strong global pro- year basis.” The company reported a third quar- umes reflect the last of the negative im- duction growth and waning demand,” Tanner says the company expects ter 2014 diluted loss from continuing pacts of the request for proposal (RFP) he says. “We don’t expect much relief fourth quarter adjusted diluted earn- operations of $0.16 per share, compared driven volume loss from a significant on raw milk costs until early 2015, but ings between $0.05 and $0.15 per share, to a third quarter 2013 diluted income customer in 2013, the company says. we do expect significant butterfat cost resulting in a full year 2014 adjusted of $4.35 per share. On an adjusted basis, Excluding the impact of the RFP, Dean declines at the end of the fourth quar- diluted net loss per share of between the third quarter 2014 diluted loss from Foods’ fluid milk volumes decreased 06 ter. Industry volumes remain soft, and $0.06 and $0.16. continuing operations was $0.03 per percent in the quarter. we expect our fourth quarter volumes to “We now expect full year 2014 share, compared to third quarter 2013 “Given the continued challenges be down low single digits, as compared adjusted EBITDA to be between adjusted earnings of $0.12 per share. facing the dairy industry due to the to prior year, but with a continued $293 and $208 million and adjusted Third quarter 2014 operating loss dairy commodity environment, we improvement to net price realization. free cash flow to end the year at ap- totaled $1 million, compared to third are encouraged by the sequential Further, as we move past our extended proximately breakeven,” Tanner says. quarter 2013 operating income of $23 improvement of our operating results period of heavy plant closure activity “We also expect to be at the low end million. Third quarter 2014 adjusted which we believe reflects the suc- and realize further cost reductions, we of our prior 2014 capital expenditure operating income totaled $10 million, cess of our current business efforts,” believe the rate of per-unit production guidance of $150-$175 million.” CMN compared to adjusted operating income says Gregg Tanner, CEO, Dean Foods. of $42 million in the year-ago period. “This year has clearly been the most Kraft Foods reports third quarter fi nancials Net loss attributable to Dean Foods difficult operating environment we’ve totaled $16 million for the third quarter ever experienced as a company. And NORTHFIELD, Ill. — Kraft Foods of the year, despite a rapidly changing of 2014 compared to $415 million of so, we remain rigorous in our focus on Group Inc. recently announced its consumer environment,” says Kraft CEO net income attributable to Dean Foods the things that we currently control: financial results for the third quarter Tony Vernon. “To date, our implementa- during last year’s third quarter. On price realization, cost productivity of 2014. tion of commodity-based pricing has an adjusted basis, Dean Foods’ third and volume at margins that deliver an Net revenues in the third quarter been successful. But in other areas, our quarter net loss totaled $3 million, appropriate return.” increased 0.1 percent to $4.4 billion. execution has been mixed. We continue compared to $11 million of net income Tanner says challenges remain for Organic net revenues increased 0.9 to apply our playbook, improve our ex- for the third quarter of 2013. the fourth quarter outlook, but Dean percent as pricing to offset significant ecution and proactively adapt to drive Net sales for the third quarter Foods expects to deliver sequentially rises in commodity costs contributed profitable growth now and in the future.” totaled $2.4 billion, compared to $2.2 improving results. 2.1 percentage points of growth. Kraft In Kraft Foods’ cheese segment, net billion of net sales in the third quarter “The dairy commodity environment says a volume/mix decline of 1.2 per- revenues of $937 million increased 1.6 of 2013. remains extremely challenging, and centage points reflected the impact of percent, reflecting higher price levels significant price increases in cheese, partially offset by lower volume/mix. meats and coffee as well as softness in Kraft says revenue growth was behind meals and desserts. overall cheese category growth as the Operating income in the third company increased prices ahead of 40LB quarter decreased 16.6 percent to $0.7 competition to offset an unrelenting billion. Earnings per share (EPS) in the dairy cost environment. CHEESE third quarter were $0.74, compared to The company adds that operating EPS of $0.83 in the third quarter last income in the cheese segment declined BLOCK year, which included a $0.18 benefit 15.8 percent as lower spending on cost from market-based impacts to post- savings initiatives was more than offset HANDLING employment benefit plans and a $0.01 by price realization running behind favorable impact due to unrealized higher input costs and lower volume/ FULLY AUTOMATED, gains/losses from hedging activities. mix, as well as executional missteps that de-cartoning, Excluding this factor, EPS was up impacted manufacturing productivity. de-bagging & in-line strongly, reflecting the growth from Kraft Foods says balanced growth block tracking turnkey operations as well as a net benefit of was achieved in its refrigerated meals approximately $0.05 from a lower tax segment, which saw net revenues up 3.4 system solutions rate vs. the same quarter last year. percent to $908 million in the third quar- Haden & Custance is the preferred “We remain on track to deliver ter, through continued momentum and supplier of choice amongst leading CONTACT earnings growth consistent with the gains in products including Lunchables cheese processors globally for the US TODAY: expectations we laid out at the start and P3 Portable Protein Packs. CMN following key reasons: USA 800 351 1745 UK +44 (0) 78 3113 3375 • Increased production output/ AU +61 (0) 437 095 162 yield/efficiency • Dramatically reduced please enter my subscription to overhead costs 1 YEAR RATES: ELECTRONIC 1 YEAR RATES: 2 YEAR RATES: T $145 (2nd Class) T $145 (E-mail Only. No Mail Service) T $205 (2nd Class) • Complete product[s] ASK OUR CUSTOMERS: T $200 (1st Class/Canada) T $210 (E-mail With 2nd T $325 (1st Class/Canada) traceability from pallet T $330 (International) Class Mail Service) T $525 (International) to packet “Haden & Custance is the only T Payment enclosed T Bill Me company that we are aware of • Automated cheese T Payment by credit card: T VISA T MASTERCARD T AMERICAN EXPRESS globally who can provide a fully Card # ______Exp. Date______Sec. 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