U.S. As a Key Source for Cheese & Butterfat

INSIDE: December 2007 U.S. Dairy Industry News USDECNews U.S. as a Key Source for Cheese & Butterfat...... 1 U.S. Market Situation and U.S. as a Key Source for Outlook...... 3 Cheese & Butterfat In the News ...... 4

Cheese & Manufactured Products Most of the attention in U.S. exports goes to dry ingredients, where American suppliers have had great success over the years. But with shifting world mar- U.S. Flavored Cheeses: a ket conditions, the United States has become a prime source for cheese and Combination for Every Palate....6 butterfat, as well.

Ingredients The United States produces about one-quarter of the world’s cheese, with 2007 production estimated to reach 4.38 million metric tons (MT). Over the Fat Pre-emulsion Technology last 10 years, U.S. cheese production has increased 2.8% per year. Over the Using Whey Proteins ...... 8 same period, U.S. butter output has expanded 3.1% annually, and is on track to approach 700,000 MT this year, the highest level since 1943. Nutrition According to the most recent statistics available (January to September The Role of Dairy Products 2007), the U.S. suppliers exported 70,477 MT of cheese, up 38% from a year in Weight Management ...... 10 ago, and 60,682 MT of butter, up 155%, according to the U.S. Department of Agriculture’s Foreign Agricultural Service (USDA/FAS). Manufacturers Meet Our Members report continued strong exports in October and November. Dairy Farmers of America ...... 14 Over the years, the United States has built cheese export markets in the retail Foremost Farms USA ...... 15 and foodservice sectors based on value-added formats or positioning. On butterfat, U.S. exports have been miniscule over the last decade, when U.S. prices were routinely higher than world prices. Now, global pricing trends have made U.S. commodities more competitive, presenting broader and deeper opportunities. In mid-November, spot loads of cheddar cheese from Oceania were trading Take the for about $5,100/MT, FOB, and butter from Oceania was about $4,250, survey according to USDA. Meanwhile, European butter was trading for close to on pages 16-17 $5,750. U.S. prices, on the other hand, were about $4,500 for cheddar and win a cheese and $3,025 for butter. 1GB USB (continued on page 2) drive!

U.S. Dairy Export Council Southeast Asian Representative Office 11/14 Soi Ruam Rudee, Wireless Road Bangkok, 10330 – Thailand Telephone +662 6896311 Fax +662 6896314 E-mail: [email protected] Website: www.usdec.org/seasia U.S. Dairy Industry News

Seizing the opportunity, U.S. butter manufacturers have made the moves necessary to produce to international market specifications. U.S. butter is Over the last few typically 80% fat and salted, while months U.S. overseas buyers prefer 82% fat, unsalted. Over the last few months manufacturers have U.S. manufacturers have churned more higher-fat butter for export. churned more Structural changes in the world dairy market give the United States an higher-fat butter opportunity to continue to grow for export. exports. Strong demand is straining the world’s available supply of cheese and butterfat, and shifts in supply capabilities from the world’s tradition- Photo: Wisconsin Milk Marketing Board al exporters have compounded the Meanwhile, ongoing drought in Perhaps most importantly, the European shortage. Australia has reduced the supply of Union suspended export subsidies on butter and cheese in June 2007. The Butter production in the European milk and manufactured products. In the move had an immediate effect, causing Union (EU-27) has steadily declined July-September period, Australian but- EU butter and cheese prices to double over the last few years as more milk is terfat production was down 14% from in a matter of months. channeled into cheese production to the prior year, and butterfat exports satisfy internal demand. According to were down 31%, according to These structural fundamentals – strong Eurostat, EU-27 butter production is DairyAustralia. demand, constricted production, expected to be 2.0 million MT this In addition, this fall, the weak U.S. reduced stocks, the weak dollar and year, down 9% from 2003 levels. dollar hit a new low against the euro. the absence of subsidies – are expected to persist into 2008. That should The European industry has withdrawn This has been coming on for a couple make the United States one of the best all its intervention butter stocks in the years; since July 2005, the value of sources for cheese and butter in the last year. Public stocks dropped to zero the dollar has dropped 21% vs. the year ahead. on September 13; a year earlier, inven- euro, 15% vs. the New Zealand dollar tories were sitting at 126,135 MT. and 24% against the Australian dollar – improving the competitiveness of U.S. products.

USDECNews is published by the U.S. Dairy Export Council (USDEC) and is designed to provide up to date information about the U.S. dairy industry for the benefits of our international partners.

USDEC was formed by Dairy Management Inc. in 1995 to enhance the U.S. dairy industry’s ability to serve international markets. USDEC is an independent non-profit membership organization representing dairy processors, exporters, milk producers and industry suppliers.

USDEC supports international buyers of dairy products by providing information about U.S. suppliers, their products and capabilities. We bring buyers and sellers together through conferences, trade missions and trade shows. USDEC furnishes application and usage ideas for U.S. dairy ingredients through seminars, one-on-one consultations and technical publications. We assist with foodservice promotions, menu development and education. We also work with local authorities to resolve market access issues that ensure reliable delivery for customers and importers. When you work with USDEC and its members, you are partnering with companies that manufacture and export more than 85% of all U.S. dairy products.

2 USDECNews | December 2007 U.S. Dairy Industry News

U.S. Market Situation and Outlook

Milk Production Increase “A higher number of milk cows and per cow and a substantial increase in Milk production in the United States slightly higher output per cow will the size of the milking herd: 65,000 has increased above trend during 2007 translate into higher milk production more cows. for both 2007 and 2008,” according to and will continue to increase at a The reversal in cow numbers will con- USDA analysts. greater than average rate during 2008, tinue during 2008 and drive milk according to estimates released by the In fact, dairy farmers in the United production to about 83.8 billion L, an USDA in Livestock, Dairy, & Poultry States have been busy for the past sev- increase of 2.6% versus 2007. USDA Outlook (October 22, 2007). eral years. During 2005, they boosted analysts expect cow numbers to total For the past couple of decades, produc- milk production to more than 77.9 bil- 9.23 million by the third quarter of tion per cow in the United States has lion liters (L), 3.8% more than 2004. 2008. Cow numbers in the U.S. have increased on average about 2% annually. During 2006, production was increased not been that high for more than a The number of milk cows in the nation’s another 2.7% to 80.1 billion L. decade, since September 1997, to be exact. High grain and forage prices milking herd has been declining at a rela- Now, USDA says production during will however hold back production per tively slow rate. The net result: annual (on 2007 will total more than 81.7 billion L, cow and it will only increase about average) increases in milk production of an increase of about 2%. This is attrib- 1.8% during 2008. about 1.3%. uted to a 1.6% increase in production

U.S. Average Dairy Cows Population from 1988 to Projected 2008

10.4

10.2

10.0

9.8

9.6

9.4

9.2

9.0

8.8

Average number of cows (in million head) Average 19881989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Total Milk Production from 1988 to Projected 2007 and 2008

Billion liters of milk produced 65

60 19881989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

3 USDECNews | December 2007 U.S. Dairy Industry News

Processing Capacity Increase Packaging and distribution virtually all of this new production Additional milk requires more plant • Masters Gallery Foods could be available for export. capacity and U.S. dairy processors • Sartori Foods Striving to increase efficiency, plant and manufacturers are responding. A • Sargento Foods operators are always looking for ways large cheese plant has just come to move more milk per day through online and several other cheese, whey By the end of 2008, annual U.S. cheese their existing facilities. It’s impossible to and milk facilities will be added over plant capacity will have increased by know just how much capacity will be the next couple of years, according to more than 180,000 metric tons (MT). added during 2008 and into the published reports and company Given the steady but modest increases future, but analysts say the volume announcements. For more details in domestic consumption, much of this could be significant. please refer to the “In the News” arti- additional production could be avail- Several plants that are being built have cle in this and previous issues. able for export. This new cheese not released data about capacity. capacity will also yield a substantially Cheese and whey products Additionally, other dairy manufacturing increased output of a variety of whey plants are almost certainly being • Hilmar Cheese Co. products such as whey protein concen- planned in the United States, but for • Leprino Foods trate. Most of the production will be a competitive and other reasons, no pub- • Great Lakes Cheese (Sept 2007) mix of products tailored to export mar- lic announcements have been made • Green Meadows Dairy LLC ket requirements. • Davisco Foods yet. Stay tuned for details. By mid 2008, plants capable of pro- Milk Powders and butter ducing 95,000 MT of skim milk powder and nearly 50,000 MT of but- • High Desert Milk Inc (Sept 2007) ter will have been added by U.S. • California Dairies Inc (CDI) manufacturers. With domestic require- • Idaho Milk Products ments being met by existing plants,

U.S. Production and Export for 2006 and Projections for 2007 and 2008

PRODUCTION EXPORTS 2007 2007 2008 2007 2007 2008 Product 2006 Jan-Sep total total 2006 Jan-Sep total total actual estimate estimate actual projected projecteda (‘000 MT) (‘000 MT) (‘000 MT) (‘000 MT) (‘000 MT) (‘000 MT) (‘000 MT) (‘000 MT) Cheese 4,325 3,263 4,401 4,505 71 72 92 95 (not including cottage cheese) American 1,775 1,314 1,767 1,809 - - - - Mozzarella 1,426 1,111 1,487 1,522 - - - - All other (residual) 1,124 838 1,147 1,174 - - - - Butter/Butteroil 657 512 687 731 10 22 24 26 Ice Cream and mixes 8,403 6,752 8,455 8,658 27 23 26 27 Fluid milk and cream 26,045 - 26,564 27,241 24 22 30 31 (1,000 liters) Milk Powders 733 551 719 736 292 202 242 248 Whey total 749 566 752 770 348 323 425 435 Dry Whey 499 388 511 524 227 204 261 268 Whey protein concentrate 194 133 181 185 97 95 129 132 and modified whey Whey protein isolate 14 12 17 17 12 12 16 17 Lactose 335 258 343 352 238 295 377 386b a Based on 2007 export rate b Lactose exports exceed production. Past product misclassification may be reflected in projections.

4 USDECNews | December 2007 U.S. Dairy Industry News

In the News…

New USDEC Members • California Dairies Inc (CDI) will • Perry’s Ice Cream will spend $5 • USDEC welcomes six new compa- be opening a new plant in Visalia, million to expand its cold storage nies to the membership: Finlandia California early in 2008. This facility and manufacturing facility in Akron, Cheese, a Parsippany, New Jersey- will be capable of converting more Ohio. The 1,625-sq-m project should based cheese distributor and than 2.2 million L of milk per day be complete by March. into various milk powders and but- marketer; La Belle Associates, a • Pacific Cheese Co.’s new process- ter including some specialty milk manufacturer of bovine colostrum ing plant in Amarillo, Texas, will be powders. At capacity, Phase I of this from Bellingham, Washington; bigger than initially thought. In May project will be able to produce Downes O’Neill LLC, a financial Pacific announced a $10-million, more than 63,500 MT of nonfat dry brokerage firm from Chicago; 3,716-sq-m project. In August it milk annually and more than NorthWoods Group, a amended the plan to build a $15- 34,000 MT of butter. Phase II of the Minneapolis-based trader; Alpura million, 8,100-sq-m facility. The plant CDI project, which should be com- International-USA, a Mexico City- will be complete in 2008 or 2009. plete late in 2009, will expand the based milk processor; and Elanco • Leprino Foods is expanding its Animal Health, a supplier of ani- plant to handle an additional 2.4 million L of milk per day. Lemoore West, California, cheese and mal health products from whey plant. Plant capacity ultimately Greenfield, Indiana. • Italian cheese manufacturer Sartori would increase from 2.6 million L of Foods will build a $15-million pack- milk daily to 4.4 million L. The first aging and converting facility in New Plants and Upgrades phase of the expansion is expected to Plymouth, Wisconsin. The 9,300-sq- be complete by spring 2009. • Davisco Foods, Jerome, Idaho m plant should be complete by added a large capacity dryer December 2008. (75,000 MT of finished product Moves and Consolidations • Masters Gallery will build a 6,500- annually) to handle liquid whey, • Dairy Farmers of America will close sq-m addition to their Plymouth, whey permeate and milk permeate in its Corona, California, cheddar block Wisconsin, cheese cut-and-wrap October 2007. cheese and whey plant by December facility. The $8-million project is 31. The plant, which had been han- • Hilmar Cheese Co. started pro- expected to be complete by late dling 2.2 million L of milk per day, duction at its new state-of-the-art 2008, nearly doubling the size of has been operating at reduced plant in Dalhart, Texas. Once it is the plant. fully operational, it will convert up to capacity since August 31. In addition, • Sargento Foods will expand its Kiel, 2.2 million liters of milk per day into DFA sold its bulk shredded American Wisconsin, plant for snacks, portion- several different cheese varieties cheese business to Schreiber Foods, controlled shredded natural cheese and whey protein products. Green Bay, Wisconsin. and frozen appetizers, to handle Currently, it is handling about 880 • Unilever will close its Green Bay, increased demand. The $6-8 million thousand L of milk a day. Wisconsin, and Oakville, Ontario, project, which will add 5,575-sq-m to offices and consolidate North • Idaho Milk Producers will build a the facility, should be complete by American ice cream operations into $70-million processing plant in next summer. Jerome, Idaho. The first phase of the their U.S. headquarters in • Williams Cheese, Linwood, plant is scheduled to open next win- Englewood, New Jersey, and Michigan, is doubling the size of its ter, producing whey proteins, lactose, Canadian headquarters in Toronto, facility with a $1-million expansion. concentrated milk and cream. Canada. Operations at the ice cream The company sells 2,250 MT of manufacturing plants are not affect- • Green Meadows Dairy will open a cheese annually. ed, and Ben & Jerry’s will continue to cheese and whey plant in Hull, Iowa, run out of Vermont. in late 2008. The plant will handle 300 million L of milk per year.

5 USDECNews | December 2007 U.S. Dairy Industry News

• Zivney Cheese, Minonk, Illinois, • Fairmount Food Group added to New Products closed its doors and put the business its portfolio of specialty cheese • Sorrento Cheese, Buffalo, New York, up for sale. The family had been pro- importers with the acquisition of introduced two varieties of Sorrento ducing cheese in Minonk for three Advantage International Foods +Plus String Cheese. One is fortified generations. Corp. This marks the fifth cheese with calcium and vitamin D; the other acquisition for Fairmount since its is 100% lactose-free. The new line founding in 2003. Previous acquisi- Acquisitions and Mergers addresses consumer demand for tions include Swissrose functional foods. • Foster Farms, Modesto, California, International, DCI Cheese, and acquired the Crystal Cream & Green Bay Cheese. • Kroger Co. introduced Kroger’s Butter business from HP Hood, just Active Lifestyle brand milk, billed as five months after Hood bought it. • Palladium Equity Partners, a New the first national launch of a choles- Hood will retain the Sacramento, York-based private equity firm that terol-cutting milk. The milk uses California, plant and retrofit it for focuses on acquiring Hispanic busi- CoroWise plant sterols, from Cargill production of branded extended nesses, bought Castro Cheese. The Inc., which have been shown to shelf life milk products including Houston, Texas-based Castro makes reduce cholesterol. Lactaid and Stonyfield organic milk, the La Vaquita line of cheese and • DCI Cheese Co. offers County Line giving the company its first produc- dairy products. probiotic cheese. Cheddar, monterey tion center on the West Coast. The • American Home Food Products jack, colby jack and pepper jack deal expands Foster’s milk volume acquired Artisanal Cheese, New contain active Lactobacillus bacteria handled by 20%, to about 11.4 mil- York. Artisanal has distribution in the to promote digestive health. lion L per week. high-end hotel and restaurant sector. • Freeze Operations Holding Corp., AHFB plans to make Artisanal a a unit of investment firm Sun Capital national, full-line specialty cheese Partners Inc., acquired Friendly Ice brand. Cream for $337 million. In addition • Sigma Alimentos, the processed to its ice cream manufacturing oper- meat subsidiary of Mexican compa- ations, Friendly has 515 company ny Alfa, acquired Mexican Cheese and franchised restaurants through- Producers of Darlington, out the Northeast. Wisconsin. MCP has a production capacity of 10,000 MT of Hispanic cheese per year.

6 USDECNews | December 2007 Cheese & Manufactured Products

U.S. Flavored Cheeses: a Combination for Every Palate

U.S. cheeses flavored with other ingre- popular seasonings within these cheese Savory dients have always been popular, but varieties include: • Herbs & spices including garlic, chives, today their popularity is soaring, and for basil, oregano, rosemary, dill and Sweet many valid reasons. Flavored cheeses cumin • Honey, maple syrup, chocolate and provide consumers with unique tastes • Vegetables like carrots, broccoli, liqueurs that help spice up the daily menu. onions and garlic • Fruits & fruit juices including blueber- These cheeses start with natural or • Smoke from hickory, apple wood and ry, strawberry, cranberry, apricot, process cheeses that are produced other hardwoods pineapple and many others according to their original standards of • Dried or cured meats and sausages identity. Additional permitted ingredi- Spicy • Seafood including smoked salmon, ents are then added to the cheese to • Peppers including jalapeno, shrimp and crab make it a “flavored cheese.” Available in habanero, chipotle, cayenne and • Wine, liquor, liqueurs, beer and a vast array of cheese varieties, flavors pepperoncini expresso and convenient forms, some of the most • Black peppercorns, green peppercorns, horseradish and wasabi

Cream Cheese, Neufchatel & Brie & Camembert other cheese spreads • In style with a variety of herbs, • Prominent in sweet flavors with peppercorns and other savory toast, muffins and bagels ingredients • Savory spreads are equally popular on sandwiches & wraps Pasteurized Process for snacking & entertaining Blue Cheese Cheese & Cold Pack • Delivers bold, assertive flavors, but • Trendy in sweet, savory other ingredients are sometimes and smoked varieties used to further heighten the flavor • Two of the most prevailing flavors include Winey Blue, which is seasoned with red wine; and Whiskey Blue, which is seasoned with Kentucky Bourbon

SOFT-FRESH

IPENED

Romano, Parmesan PRO SOFT R Monterey Jack, & Asiago Brick & Muenster CESS • One of the original BLUE • Monterey jack— hard flavored suitable with hot cheeses was pepato, peppers, garlic & a romano with whole Flavored herb, pesto and black peppercorns; HARD SEMI-SOFT Caesar flavors today parmesan and Cheeses • Brick & Muenster— asiago are also suitable for varieties produced in varieties EDAM & containing cumin or with whole black caraway seeds SWISS peppercorns PASTA FILATA GOUDA

HEDDAR C

Aged Swiss, Baby Swiss & Edam & Gouda Sweet-style Swiss • Preferred varieties which are • All available smoked—some cold spiced with cumin seeds, caraway smoked over various hardwoods seeds or smoked and some placed in a brine solution with smoke flavors added Cheddar Mozzarella, String Cheese & • Considered the most favored Provolone cheese in the world, now • All available smoked available in a wide array of • Mozzarella is also available rolled flavors, both sweet and savory, as in layers with garlic, herbs, well as smoked prosciutto or sun-dried tomatoes

7 USDECNews | December 2007 Cheese & Manufactured Products

Recent Trends in U.S. Cheese has always been a natural spread formats, more varieties now are Flavored Cheeses match for beer and wine, but rarely being launched in shredded styles. have cheeses actually included these These flavorful shreds have a broad When U.S. consumers buy a new beverage flavors. Bolstered by con- range of applications, from salads and snacking cheese at the supermarket or sumers’ increasingly sophisticated sandwiches to casseroles, and meet the order a restaurant dish made with U.S. palates, times have changed, and wine needs of consumers who want conven- cheese, they may be surprised to find varietals including Merlot, ience without compromising bold taste. flavors far removed from the traditional Chardonnay, Cabernet, Sauvignon, Flavored shreds allow consumers to dairy case. Today’s flavored cheeses and Port now flavor cheddars, process easily incorporate cheese into their are expanding in number and variety, cheeses, dips, and spreads. Even favorite dishes without having to use a inspired by tastes that are much more grater, and now they are available in common in the supermarket produce more varieties than ever before. Dairy aisle, wine section, ethnic foods aisle, Farmers of America’s Borden brand has and even the dessert case. Although been particularly innovative with its plain cheeses still comprise the over- When it comes to Shred Medleys line launched in fall whelming majority of new cheese flavored cheese, U.S. 2006. Shredded cheddar and mon- products and menu dishes, flavored terey jack cheeses come with a Season cheeses offer an exciting way for con- manufacturers and Sensations pack available in such vari- sumers to experiment with new taste eties as Tuscan Herbs, Pesto Parmesan, profiles and reinvent some of their tra- restaurants realize that and Garden Blend. Other manufactur- ditional favorites. consumers like it hot. ers have introduced varieties inspired When it comes to flavored cheese, U.S. by Hispanic and Southwest flavors manufacturers and restaurants realize including jalapeno and chipotle. that consumers like it hot. According to Given the growing diversity of U.S. fla- Mintel’s GNPD (Global New Products beers—once the mainstream cousin to vored cheeses, there is tremendous Database), jalapeno and chipotle were premium wine—have gone upmarket opportunity to sell these offerings on the most popular flavors among U.S. and trickled down to flavored cheese. supermarket shelves. Flavored cheeses cheeses launched from January 2006 to Cabot Creamery, for instance, are often positioned as gourmet or October 2007. These pepper flavors launched an IPA (India Pale Ale) premium foods, so their sophisticated have also found their way into restau- Cheddar Cheese late last year. flavors that marry sweet and savory rant kitchens. Pepper jack varieties are Just as consumers’ intensifying quests tastes, feature bold spices, or include the overwhelming favorite among food- for new flavors have led manufacturers ethnic-inspired ingredients should be service flavored cheeses and appear in to create beer- and wine-inspired highlighted. Varieties that incorporate dishes ranging from burgers and sand- cheeses, they have also sparked the unexpected flavors such as wine, or wiches to quesadillas and fondues. development of cheeses that marry that come in non-traditional formats Interest in spicy pepper flavors has sweet and savory profiles. Typically, such as shreds, will appeal to con- been bolstered by the growing cream cheese has been a segment sumers who may not have Hispanic population and renewed where sweet flavors are used liberally. experienced the range of today’s U.S. interest in authentic ethnic foods—a Consider Panera Bread, a casual din- flavored cheeses. trend underscored by the fact that ing chain specializing in upscale Similarly, restaurants have infinite possi- 66% of American consumers now use sandwiches and salads, that offers a bilities when incorporating flavored Mexican sauces, according to Mintel honey walnut cream cheese; and Bob cheeses in their dishes. These cheeses Reports. Cheese manufacturers have Evans, a family-oriented restaurant can enliven traditional offerings such as been savvy in capitalizing on these brand offering traditional American sandwiches and offer a modern twist changing tastes by launching new favorites, that stuffs its French toast with on classic favorites. Cheese plates products including salsa jack cheese vanilla-flavored cream cheese. increase their flavor quotient when and cream cheese spreads with salsa. However, retail manufacturers have fruit- or beer-flavored cheeses are Ethnic flavors go beyond Hispanic- moved beyond cream cheese to added, while pizzas gain a new taste inspired ingredients, however. A explore how sweet flavors can enliven profile altogether with the addition of variety of flavored cheeses that lever- traditionally savory cheeses. Varieties smoky provolone or garlic mozzarella. age Mediterranean and Italian made with blueberry, cranberry and Given that U.S. cheese manufacturers traditions also are becoming more orange are now appearing on super- are constantly innovating with their fla- common. Sun-dried tomato, basil, market shelves. vored offerings, the potential for using and red pepper are among the most Although flavored cheeses traditionally these cheeses is enormous. popular flavors. have been delivered in chunk and

8 USDECNews | December 2007 Ingredients

Fat Pre-emulsion Technology Using Whey Proteins

By Dr. Gits Prabhu, presence does not disturb the gel for- their particle size. As most animal fats PHD Technologies LLC mation of the meat protein. are solid at ambient conditions, increasing the temperature aids in the In processed meats such as sausages, Pre-emulsion development of a stable emulsion hot dogs and bologna, the binding of fat Using various proportions of WPC 80, fat (Figure 1). and water is accomplished by proteins; and water, a viscous pre-emulsion is however, all proteins are not equal in Pre-emulsion procedure: obtained with a very fine texture and their functionality. Some types of proteins 1.Chop pork fat at high speed for consistency, and can be added to the such as whey protein concentrate with approximately 5 minutes until tem- meat matrix during chopping or blend- 80% protein (WPC 80) are better suited perature stabilizes. Fat should be ing. This type of pre-emulsion to perform fat/water binding than others. smooth and almost liquid. Note: technology has many advantages for the Temperature will typically stabilize During the formation of a fine sausage meat processor. The pre-stabilization of between 27°C and 35°C. emulsion, a relatively large number of fat allows much greater freedom in the 2.Add WPC 80 and guar gum*. small fat or oil droplets are liberated development of recipe formulations. The 3.Add room-temperature water slowly from the fat cells. All this fat needs suffi- fat pre-emulsion system is stable across a until emulsion inverts (typically cient protein coating to prevent it from broad range of temperature. When the requires approximately 2/3 of the flowing back together during heating. fat is pre-emulsified, its off-flavor is virtu- water, depending on shear and tem- ally eliminated in the final product. In The myofibrillar fraction of the meat pro- perature.) least-cost formulations, using cheaper teins constitutes most of the fat/water 4.Continue chopping at high speed types of fat leads to considerable cost binders in a meat emulsion. The myofib- until the temperature reaches 35- savings. The addition of pre-emulsions rillar proteins are preferentially adsorbed 40°C. should not exceed half the total fat con- to the fat/water interface resulting in an Note: Emulsion viscosity will signifi- tent. The pre-emulsion made from WPC alteration in the molecular structure. In cantly increase as emulsion inverts. 80 can be added to a standard recipe other words, the myofibrillar proteins 5.Add remaining water** and chop up to 20% to achieve a good product at become preferentially denatured. just until incorporated. a considerably lower price. Consequently, this protein fraction can no 6. The resulting pre-emulsion is white, longer contribute to the very important Preparation of the stable and smooth with a viscous tex- heat gelation within the meat matrix. Pre-emulsion ture. Because the myofibrillar fraction is partly 7.Keep cold until use. The procedure used to prepare the consumed by the fat, it loses water-bind- * The guar gum is used only to increase the vis- ing and heat-gelation capacity within the 1:5:5 or 1:20:20 (WPC 80: pork fat: cosity of the fat and water mixture and increase meat matrix. water) emulsion is extremely important friction for temperature increase. in order to achieve emulsion stability. A ** In order to decrease the temperature of the The way to solve this problem is to use a key factor is that the fat globules must emulsion rapidly, ice can be used at the end of free fat pre-emulsion containing a non- be subject to sufficient shear to reduce the production process. meat protein thereby saving the myofibrillar proteins for water binding and structure formation. The best non-meat protein avail- Figure 1: WPC 80 Pre-emulsion Procedure able is WPC 80, which has excellent emulsifying capabilities, and by nature is strongly attracted to the fat/water interface. If whey proteins get the opportunity to sur- round the free fat particles during chopping or blending before the myofibrillar proteins, the latter are saved from 1 2 3 alteration in the molecular structure and loss of water-holding capacity is avoided. The emulsifying action of WPC 80 produces small fat globules that prevent shrinkage by lodging within the swollen meat fibers. Another important advantage of WPC 80 as opposed to many other non-meat proteins is that their 4 5 6

9 USDECNews | December 2007 Ingredients

The pre-emulsion can be added to a important to prevent any fatting out in the Applications processed meat recipe. Pre-emulsions finished product. Sausages may be considered as an emul- prepared using the above procedure Advantages of WPC 80 sion of fat globules stabilized in a protein have been extensively tested under con- matrix. While in some formulations, the ditions to simulate the thermal processing WPC 80 is a highly functional ingredient. native meat proteins are sufficient to stabi- of sausages. When subject to 75°C (the It has excellent solubility, low viscosity lize the emulsion during cooking; typical temperature used for cooking and the ability to form strong, elastic, frequently the formulation will require the sausages) and above, the resulting irreversible gels whose gel strength use of other proteins to prevent fatting out, cooked emulsions form a very white col- increases as the temperature increases. reduce purge and improve texture. Often ored, smooth, cut-able texture with no This property makes it an ideal protein a 1:5:5 fat pre-emulsion made with WPC fatting out or water separation (Figure 2). for inclusion in products cooked to tem- 80 can be used to replace a portion of the In retorted or sterilized products the peratures of 75°C and above as well as lean meat in a formulation, providing complete stability of the emulsion is retorted products. improved texture and mouthfeel while sig- WPC 80 is an ideal protein source for nificantly reducing costs (Table 1, Test 1). Figure 2: 1:20:20 (WPC 80: pork fat: use in fat pre-emulsion systems. Having A 1:20:20 fat pre-emulsion with WPC 80 water) Pre-emulsion Cooked at 90ºC hydrophillic and hydrophobic regions, may be used to replace a 1:5:5 fat pre- for 1 hour the protein aligns at the oil-water inter- emulsion made with soy protein isolate face, “coating” the fat droplets, which (ISP) at slightly higher costs (Table 1, Test creates a steric hindrance to coales- 2). For many years, ISP has been the pro- cence and fat separation. In addition, tein chosen by most meat processors due WPC 80 forms an irreversible gel-net- to its lower cost. However, when a WPC work when thermally processed, 80 pre-emulsion is used instead of an ISP stabilizing the emulsion and providing pre-emulsion, the resulting product has a texture to the finished product. firmer texture, improved color, improved flavor and a creamier mouthfeel. Table 1: Thai Style Hot Dog Formulation Using 1:5:5 (WPC 80: pork fat: The use of a pre-emulsion with WPC 80 water) Pre-emulsion Replacing Lean Meat and 1:20:20 (WPC 80: pork fat: contributes enormously to product quali- water) Pre-emulsion Replacing 1:5:5 (ISP: pork fat: water) Pre-emulsion ty and stability in those cases where the Ingredients Control Test 1 Test 2 lean meat content is comparatively low Chicken leg meat 23.00 20.00 23.00 and the technological performance of Chicken breast meat 15.00 13.00 15.00 the meat used is poor. The great advan- Pork 80:20 5.00 5.00 5.00 tage of this method is that it allows a Chicken fat 5.50 5.50 5.50 broad range of products to be made Pork fat 26.00 26.00 26.00 with an extreme optimization of recipe Salt 0.95 0.95 0.95 variations and very significant cost sav- Sodium nitrate 0.30 0.30 0.30 ings. In addition, the meat products Sodium tripolyphosphate 0.20 0.20 0.20 made with this technology show good Sodium erythorbate 0.05 0.05 0.05 quality and greater heat stability than ISP emulsion (1:5:5)* 5.50 5.50 5.50 products that are more expensive and WPC 80 emulsion (1:5:5)** 0.00 5.00 0.00 are made in the conventional way. WPC 80 emulsion (1:20:20)*** 0.00 0.00 5.50 Spice 2.86 2.86 2.86 Benefits of using WPC 80 Starch 2.00 2.00 2.00 Replacing 5% of the chicken breast Ice 13.64 13.64 13.64 and leg meat with 1:5:5 WPC 80 emul- Total 100.00 100.00 100.00 sion in a chicken hot dog formulation *1:5:5 ISP emulsion contains 0.5% ISP, 2.5% pork fat and 2.5% water (Test 1), resulted in a product with **1:5:5 WPC 80 emulsion contains 1% WPC 80, 5% pork fat and 5% water ***1:20:20 WPC 80 emulsion contains 0.13% WPC 80, 2.60% pork fat and 2.60% water increased cook yield, improved texture and mouthfeel and 4% cost savings. Hot dog procedure: Replacing the 1:5:5 ISP emulsion in the 1.Chop lean meat with salt, sodium tripolyphosphate, sodium nitrite, sodium formulation with a 1:20:20 WPC 80 erythorbate and half the ice until a temperature of 5-6°C is reached. emulsion (Test 2) resulted in a product 2. Add chicken fat, pork fat, ISP emulsion or WPC 80 emulsion, spice, starch and with a firmer texture, creamier mouth- the remaining ice; and chop at high speed until the temperature reaches 10°C. feel and improved flavor, at slightly 3.Stuff into peelable cellulose casings. higher cost. 4. Cook in a smokehouse to an internal temperature of 72°C and store at <4°C.

10 USDECNews | December 2007 Nutrition

The Role of Dairy Products in Weight Management

Hunger and malnutrition have long alarming with 14% of children ages 2-5 been a global concern, primarily in and 19% of children ages 6-11 identi- developing and underdeveloped fied as being overweight. Once nations. Until recently, undernutrition perceived as being an issue only in the was the most prominent malnutrition- U.S., obesity has now reached global related problem in the world. As status and is a highly visible public countries develop and have greater health concern. In 1995 there were an access to food supplies. there is a shift estimated 200 million obese adults from undernutrition to excess energy worldwide. Today, the number has people who are undernourished. (calorie) consumption, resulting in a grown to well over 300 million, includ- Nutrition is critical as food availability population with a larger number of ing more than 115 million people in does not equate to proper nourishment. (1) overweight and obese people. developing countries. Many countries have large numbers of This global epidemic, termed Economic expansion has been blamed people with energy (calorie)-rich but “Globesity” by the World Health for the increase in obesity in countries nutrient-poor diets that may be lacking Organization (WHO), is predicted to like China, where today, a higher stan- proteins and other essential nutrients. dard of living in urban areas equates to cause a variety of serious health disor- The cause of overweight and obesity is an increase in food availability. This, ders, including diabetes, cardiovascular multifactorial and the successful pre- combined with a more sedentary disease and hypertension, in millions of vention and/or treatment depend on lifestyle, has resulted in 8% of 8 to 12 people if it is not brought under control. multiple actions. Strategies to address year olds in China’s cities being obese, These health risks are a major factor in the problem have been largely focused with an additional 15% who are over- the continued rise of medical care costs on increasing energy expenditure weight. However, malnutrition is still a and a reduction in life expectancy. (physical activity), reducing energy concern in many of China’s rural areas. The United States currently has the (calorie) intake, or a combination of The double-sided challenge of highest prevalence of obesity in the both. A promising beneficial role for hunger/undernutrition versus obesity world. National studies report that over dietary calcium and dairy products in commonly coexists in the same country, 66% of adults and 17% of youth in the weight management has emerged. This region or city. For example, in Europe country are obese or overweight. The article will review the current scientific there are an estimated 125 million trend among U.S. youth is especially evidence, including human clinical, obese people and another 23 million

Percentage of Obese and Overweight Men and Women by Country – Ages 15 and Up 100 90 80 70 60 % 50 40 30 20 10

0 Men Women Men Women Men Women Men Women Men Women Men Women Men Women Men Women Men Women Men Women Men Women US Mexico Australia UK Germany Finland Bahamas Denmark S. Africa China Japan

% Overweight % Obese Source: WHO, 2005 To view information for a country not listed please visit the following webpage: http://www.who.int/ncd_surveillance/infobase/web/InfoBasePolicyMaker/reports/Reporter.aspx?id=1

11 USDECNews | December 2007 Nutrition

reduction in body fat, trunk fat and are taken into account, diets including waist circumference. There was also a adequate amounts of dairy compare trend towards greater weight loss in the favorably to diets with limited dairy group consuming 3 dairy servings per foods and low calcium intake in terms day compared to groups receiving a of weight management. Some studies low-calcium control diet or a calcium also show that calcium from dairy rich diet supplied by non-dairy calcium products is more effective in weight supplements.(2) loss than calcium obtained from dietary supplements.(2,4) Natural dairy Weight reduction is often a slow and calcium is readily available to the body challenging process and, maintaining and easily absorbed. Additional weight loss may be even more difficult. research is needed to better under- Researchers often find that up to 50% stand the role of calcium and other of lost weight is regained within a one- bioactive components in dairy prod- year period and approximately 90% is ucts, such as protein, branched-chain regained within 5 years. Scientific evi- amino acids, or ACE inhibititory pep- dence, including several human observational and animal model studies tides, in weight management. clinical trials, has indicated a benefi- that have explored the relationship cial role for calcium-rich dairy foods between the consumption of dairy foods Possible Mechanisms of on body weight and body fat. Human and weight management. It will also Action clinical trials are considered to be the explore the plausible mechanisms by “Gold Standard” of proof in the Animal, cellular, and human studies which dietary calcium in dairy products research world. indicate there are multiple mechanisms may favorably affect body weight, body that support the ability of calcium and fat and lean mass. A recently published study in the dairy foods to regulate the use of fat- Journal of Nutrition explored the effect calories by the body, resulting in a Dairy Calcium & Weight Loss of dietary calcium from dairy foods on lower body weight and less body fat. Numerous studies using whole, reduced weight maintenance in 103 obese and fat and fat free dairy products have overweight women who had lost weight Dairy Protein and Satiety been conducted to explore the role of over a 22-week period. The researchers Dairy products are well known as an dairy foods in achieving and maintain- used regression analyses to explore the excellent source of high quality protein. ing a healthy weight. They included relationships between changes in Protein has been shown to have a clinical studies in overweight and obese dietary calcium, energy intake, and greater affect on satiety in comparison adults who had been consuming low weight regain. Data for both dietary cal- to fats or carbohydrates and an amounts of calcium on a regular basis cium and total energy intake (kcal/day) increase in satiety often results in at baseline. A number of these studies was obtained from 5-day food records reduced food consumption. For exam- have shown that reduced calorie diets (FR) and Block ’98 food frequency ple, in a 12-week clinical trial, containing three daily servings of dairy questionnaires. At the end of a 6- to 18- individuals who increased their intake of foods, such as reduced-fat milk, yogurt month follow-up period, researchers dietary protein from 15% of calories to and cheese, help people lose more used a statistical approach to control for 30% of calories while maintaining a weight compared to reduced calorie changes in energy intake and found constant carbohydrate intake, substan- diets with limited amounts of dairy that when energy intake was held con- tially decreased their at-will intake of products. This has highlighted a benefi- stant, a 100 mg increase of daily calories and reported a significant cial role for highly nutritious, calcium resulted in less weight regain. decrease in hunger.(5) Another recent calcium-rich dairy products in weight They concluded that “dietary calcium study on 46 obese and overweight management. from dairy foods may be inversely relat- women found that a high protein diet ed to weight regain following a weight improved the perceptions of satiety A multi-center clinical study of over- loss diet”.(3) weight and obese adults, conducted when the subjects were following a (6) over a 12-week period, found that Some research studies have found no calorie restricted diet. dairy-rich diets appeared to increase significant differences in loss of body In addition to promoting satiety, ade- weight loss by targeting the fat storage weight and fat between low dairy and quate amounts of protein are essential compartment during calorie restriction. adequate dairy intake. The impact of in dietary plans for weight maintenance The participants consumed 3 servings dairy foods on body weight and fat loss or reduction to help minimize the loss of dairy per day (approximately 1,400 may be dependent on factors includ- of lean body muscle. Muscle loss often mg of total calcium per day) and ing energy intake, initial body weight occurs in conjunction with weight loss reduced their calorie intake by 500 kcal and a person’s baseline calcium or and it negatively affects both health per day. The result was a significant dairy food intake. When these factors and metabolism. Research studies have

12 USDECNews | December 2007 Nutrition shown whey protein to be highly effec- Fat Binding Properties of tive in helping maintain lean body Calcium muscle during weight loss.(7) Studies have shown that individuals con- An additional benefit of whey protein suming a high calcium diet (1,800 based on several studies is its ability to mg/day) from dairy foods absorb less suppress hunger more effectively than calories and excrete up to 2.5 times other proteins.(8) Researchers theorize more fecal fat versus subjects on a low that the bioactive components in whey calcium diet (500 mg/day). Preliminary protein play an important role in its data from a recently published study ability to positively impact weight main- suggest that combining calcium with tenance and weight loss. Future studies whey protein increases the effect. Whey hope to identify more information about protein provides a multitude of bioactive the specific mechanisms and compo- substances that may work synergistically nents involved. with the calcium to alter lipid metabo- effect on calorie balance and body lism.(9) Additional research is needed in composition. this area to determine the degree of the Dairy Products and Energy Utilization Intracellular calcium plays an impor- Body Mass Index Chart tant role in regulating fat metabolism by increasing fat storage and inhibit- Height ing fat breakdown in fat cells. The (in)58596061626364656667686970717273747576 levels of intracellular calcium are con- (ft/in) 4’10” 4’11” 5’0” 5’1” 5’2” 5’3” 5’4” 5’5” 5’6” 5’7” 5’8” 5’9” 5’10” 5’11” 6’0” 6’1” 6’2” 6’3” 6’4” trolled by calcium regulating (m) 1.47 1.49 1.52 1.54 1.57 1.60 1.62 1.65 1.67 1.70 1.72 1.75 1.77 1.80 1.82 1.85 1.87 1.90 1.93 hormones. Both human and animal 45/100 21 20 20 19 18 18 17 17 16 16 15 15 14 14 14 13 13 13 12 studies have suggested that a high cal- 48/105 22 21 21 20 19 19 18 18 17 16 16 16 15 15 14 14 14 13 13 cium diet inhibits calcium regulating 50/110 23 22 22 21 20 20 19 18 18 17 17 16 16 15 15 15 14 14 13 hormones, thereby reducing intracel- 52/115 24 23 23 22 21 20 20 19 19 18 18 17 17 16 16 15 15 14 14 lular calcium. This in turn decreases 54/120 25 24 23 23 22 21 21 20 19 19 18 18 17 17 16 16 15 15 15 fat accumulation and increases the (10) 57/125 26 25 24 24 23 22 22 21 20 20 19 18 18 17 17 17 16 16 15 release of fat from fat cells. 59/130 27 26 25 25 24 23 22 22 21 20 20 19 19 18 18 17 17 16 16 Research is ongoing in all of the areas 61/135 28 27 26 26 25 24 23 23 22 21 21 20 19 19 18 18 17 17 16 previously listed. Current and future 64/140 29 28 27 27 26 25 24 23 23 22 21 21 20 20 19 19 18 18 17 studies, including long-term studies 66/145 30 29 28 27 27 26 25 24 23 23 22 21 21 20 20 19 19 18 18 and clinical trials, will help provide a 68/150 31 30 29 28 27 27 26 25 24 24 23 22 22 21 20 20 19 19 18 better understanding of the mecha- 70/155 32 31 30 29 28 28 27 26 25 24 24 23 22 22 21 20 20 19 19 nisms of action and the specific 73/160 34 32 31 30 29 28 28 27 26 25 24 24 23 22 22 21 21 20 20 benefits provided by dairy products in 75/165 35 33 32 31 30 29 28 28 27 26 25 24 24 23 22 22 21 21 20 terms of weight management. 77/170 36 34 33 32 31 30 29 28 27 27 26 25 24 24 23 22 22 21 21 79/175 37 35 34 33 32 31 30 29 28 27 27 26 25 24 24 23 23 22 21 The positive news is that the obesity Weight (kg/lbs) Weight 82/180 38 36 35 34 33 32 31 30 29 28 27 27 26 25 24 24 23 23 22 epidemic is reversible when societies 84/185 39 37 36 35 34 33 32 31 30 29 28 27 27 26 25 24 24 23 23 adopt healthy lifestyles related to diet 86/190 40 38 37 36 35 34 33 32 31 30 29 28 27 27 26 25 24 24 23 and physical activity. New information 88/195 41 39 38 37 36 35 34 33 32 31 30 29 28 27 27 26 25 24 24 on the negative health risks associated 91/200 42 40 39 38 37 36 34 33 32 31 30 30 29 28 27 26 26 25 24 with obesity, and the corresponding 93/205 43 41 40 39 38 36 35 34 33 32 31 30 29 29 28 27 26 26 25 high health care costs, have resulted 95/210 44 43 41 40 38 37 36 35 34 33 32 31 30 29 29 28 27 26 26 in numerous countries increasing their 98/215 45 44 42 41 39 38 37 36 35 34 33 32 31 30 29 28 28 27 26 focus on the problem of obesity. For 100/220 46 45 43 42 40 39 38 37 36 35 34 33 32 31 30 29 28 28 27 example, in February of this year the 102/225 47 46 44 43 41 40 39 38 36 35 34 33 32 31 31 30 29 28 27 European Charter on Counteracting 104/230 48 47 45 44 42 41 40 38 37 36 35 34 33 32 31 30 30 29 28 Obesity was launched in Denmark. 107/235 49 48 46 44 43 42 40 39 38 37 36 35 34 33 32 31 30 29 29 The Charter will identify key areas of 109/240 50 49 47 45 44 43 41 40 39 38 37 36 35 34 33 32 31 30 29 action including food choices, nutri- 111/245 51 50 48 46 45 43 42 41 40 38 37 36 35 34 33 32 32 31 30 tion labeling and the marketing of 113/250 52 51 49 47 46 44 43 42 40 39 38 37 36 35 34 33 32 31 30 food products. Children and youth are

Key: Under-weight Healthy-weight Over-weight Obese

13 USDECNews | December 2007 Nutrient Profile of Select Dairy Products new products targeting weight man- The following nutrient information is based on recommended serving size. Values are agement. Many dairy ingredients have estimates and may vary by product and manufacturer. a mild taste and can be easily added to foods to boost their nutritional value Serving Calories Protein Fat Calcium Product in terms of protein and/or calcium. Size (kcal) (g) (g) (mg) Dairy products and food products for- Skimmed milk 237ml 86 8 0 301 mulated with dairy ingredients are excellent choices for a diet designed Partially skimed milk (1% fat) 237ml 102 8 2 290 to maintain a healthy weight. Whole milk 237ml 146 8 8 276 For additional information on the role of Buttermilk, lowfat 237ml 98 8 2 284 dairy products and weight manage- Skimmed milk powder 30g 109 11 0 377 ment, including product formulations, please visit http://www.usdec.org/pub- Whole milk powder 32g 159 8 9 292 lications/monographs.cfm. Yogurt, plain, whole milk 227g 138 8 5 275 Information for this article is based on Yogurt, plain, lowfat 227g 143 12 4 415 an article in the September 2007 edi- tion of Dairy Foods magazine titled Yogurt, plain, nofat 227g 127 13 0 452 “Dairy and Weight Management – An Cottage cheese, lowfat (1% fat) 113g 81 14 1 69 Update on the latest advances” by Dr. Peter Huth, Dr. Greg Miller and Dr. Lisa Cottage cheese, creamed, small curd 113g 116 14 5 68 Spence. To view a copy of the original Cheddar or colby cheese, lowfat 28g 48 7 2 116 article in pdf format go to Cheddar cheese 28g 113 7 9 202 http://usdec.files.cms- plus.com/ForeignOffices/PDFs/HuthMill Mozzarella cheese, nonfat 28g 42 9 0 269 er%20Weight%5F0907.pdf. Mozzarella cheese, part skim milk 28g 71 7 4 219 Mozzarella cheese, 3.5% fat 28g 146 8 8 276

Source: USDA National Nutrient Database (http://www.nal.usda.gov/fnic/foodcomp/search/ or www.nutritiondata.com) References 1. World Health Organization, www.who.int 2. Zemel, M., et al., FASEB J, 18:A845, (abstract #566.5), 2004 an important target of the initiative as include three servings of low-fat dairy 3. Ochner, C. and M. Lowe, J Nutr, 137:2324- their health conditions often continue foods per day (e.g. 237 ml milk, 227 g 2328, 2007 into adulthood. The increased focus yogurt, or 42 g natural hard cheese) in 4. Zemel, M., Obes Res, 12:582-590, 2004 on weight management may provide conjunction with a reduced calorie 5. Weigle, D., et al., Am J Clin Nutr, 82:41-48, 2005 new opportunities for nutritious, dairy- diet and increased physical activity. 6. Leidy, H., Obesity, 15(2):446-455, 2007 based products, especially those Dry dairy ingredients can also be used 7. Dangin, M., et al., J Physiol, 549.2:635-644, higher in protein and calcium. as an option to deliver milk’s high 2003 8. Hall, W., et al., Br J of Nutr, 89(2):239-248, quality protein, vitamins and minerals. 2003 Summary Ingredients such as SMP, WPC, WPI, 9. Pilvi, T., et al., Br J of Nutr, 98(5):900-907, In summary, as a means to manage milk protein concentrate and isolate 2007 10. Zemel, M., et al., AJCN, 79(5):907S-912S, one’s weight, current recommenda- are increasingly being recognized as 2004 tions by researchers and nutritionists beneficial choices in reformulated and

14 USDECNews | December 2007 Meet Our Members

Dairy Farmers of America

Dairy Farmers of America, Inc. (DFA) is “Since DFA has been working for many the leading U.S. farmer-owned dairy years to develop products to meet marketing cooperative. The Kansas City, export market requirements, we are Missouri-based cooperative markets ready to supply products to our inter- 34% of total U.S. milk volume annually, national customers,” Sevilla says. “We with 27.1 billion liters of milk sourced work with our customers on processing, from more than 19,000 producer mem- product functionality, packaging, label- processed, mozzarella, string and a bers in 48 states. ing, research and export requirements variety of shredded and sliced cheeses to make sure that the products meet The cooperative is likewise a major U.S. under brands such as Borden, Enricco, their individual needs.” dairy processing and export force. DFA Jacobo, MidAm and California Gold. processing operations span 100-plus Decade of Growth Manufacture of added-value dairy affiliated facilities, including numerous January 1, 2008, marks the 10th ingredients takes place throughout the joint ventures. DFA annually exports anniversary of DFA’s formation DFA plant system. Products available $160 million in cheeses, dairy ingredi- through the consolidation of four for export include condensed milk and ents, butter and shelf stable drinks. The leading U.S. regional dairy marketing cream, dried whey, dehydrated prod- co-op’s 2006 dairy product sales cooperatives. The producers and pro- ucts, nonfat dry milk, buttermilk reached $2 billion; combined sales of cessing operations of Southern AMPI, powder, reduced mineral whey, con- finished products and raw milk totaled Inc.; Mid-America Dairymen, Inc.; densed whey and limited quantities of nearly $7.9 billion. Milk Marketing, Inc. and Western whey protein concentrate with 34% DFA’s dairy products and dairy ingre- Dairymen Cooperative, Inc. joined protein (WPC 34). Milk powder is dients are marketed in more than 40 forces on January 1, 1998. Additional exported through Dairy America. countries, with the highest export vol- regional producer organizations sub- DFA’s Golden Cheese Company of ume to Asia, Latin America and the sequently joined DFA, including California facility in Corona, California, Middle East. DFA continues to devel- Independent Cooperative Milk will close at the end of 2007. Export op export markets throughout North Producers Association; and California cheese and whey sales production will and South America, Europe, Asia and Gold Dairy Products. transition to DFA facilities in Minnesota the Middle East, reports Gabriel DFA is vertically integrated, which (Zumbrota), Pennsylvania (New Sevilla, DFA’s vice president of inter- allows it to provide quality consistency Wilmington) and California (Turlock). national sales. from farm to finished product, Sevilla DFA exports also include Keller’s AMF, DFA-owned manufacturing plants pro- says. “Our farmers proudly produce butter oil and butter as well as retail duce a broad range of dairy products. the milk that we use to manufacture and foodservice butter under the Cheeses, bottled dairy beverages, our products, with special emphasis Keller’s, Borden and Plugra labels. infant formulas, cheese sauces, cream, on quality, product integrity and safe- The cooperative also offers interna- butter, butter oil and dairy ingredients ty,” he adds. tional markets its aseptic Sport Shake exported under DFA-owned brands The co-op’s predecessor organizations beverages in chocolate, strawberry include Golden Cheese, Enricco and began to build export expertise in the and vanilla flavors. Jacobo cheeses; Farmers’ Cheese; late 1980s. Two decades later, DFA and Keller’s butter and Sport Shake asep- its affiliates continue to expand the co- Contact Information tic beverages. The cooperative op’s international reach. Website: www.dfamilk.com additionally licenses the Borden brand for cheese products. Scientists at DFA’s Technology Center Additional DFA Websites: Borden brand for product development in cheese, www.elsie.com; Keller’s Most products from DFA are kosher and Springfield, Missouri, utilize state-of- Creamery butter, halal certified. Many DFA facilities are the-art laboratories, a small-scale pilot www.kellerscreamery.com; and Sport EU-certified, and additional plants are test plant and a sensory lab to develop Shake shelf stable beverages, undergoing the EU certification process. new U.S. dairy products and applica- www.sportsshake.com Numerous DFA facilities are also certi- tions to meet the needs of domestic fied for exports to Chile. The co-op’s Gabriel Sevilla, vice president of and international customers. diverse plant capabilities and geo- international sales, Dairy Farmers of graphic diversity allows DFA to provide Export Lineup America, Kansas City, Missouri, USA customer-specific product requirements e-mail: [email protected] as well as competitive export freight DFA’s international cheese offerings rates, Sevilla says. include cheddar, monterey jack, gouda, colby, colby jack, muenster,

15 USDECNews | December 2007 Meet Our Members

Foremost Farms USA

For more than a century, Foremost The co-op has continued to grow, pro- Farms USA and its predecessor cooper- ducing approximately 11,000 MT of atives have successfully provided its butter, 224,000 MT of cheese and dairy farmer-owners with a financially 139,000 MT of whey products annually. strong business driven by efficient To tap into efficiencies and add value to manufacturing and marketing of milk products and services, in 2006 Foremost and dairy products. The earliest prede- Farms combined separate cheese and cessor organizations to Foremost Farms whey ingredient divisions to form its were founded in the late 1890’s. new manufactured products division. The Baraboo, Wisconsin-based dairy Foremost Farms aims to provide cost- Ingredients Options cooperative creates a full range of dairy efficient, additional value to • Daritek™ WPC – adds multiple func- products and ingredients at 19 process- customers. An example is the grant- tionalities; can replace added ing facilities in the Upper Midwestern funded retooling of Foremost Farms’ emulsifiers, stabilizers, starches and states of Wisconsin, Minnesota and Clayton, Wisconsin, cheese facility to other proteins. Suited for beverages, Iowa. Nearly 2,700 dairy farmer mem- produce provolone cheese in sliced confections, baked goods, dairy prod- bers from the region provide Foremost lengths at customer request. ucts, snacks, soups, salad dressings Farms with a steady milk supply, reach- and sauces. “The flexibility to make unique products ing 2.3 billion liters in 2006 to make and ingredients for individual cus- • Daritek™ HS – a heat stable whey Foremost Farms number six in milk vol- tomers is one of the ways we’ll continue protein concentrate that will remain ume among U.S. dairy cooperatives. to grow our business,” says Gretenhart. soluble during aseptic and retort A full-line dairy processor, Foremost processing. Suited for protein drinks, Farms’ total 2006 dairy product sales Cheese & Ingredient Expertise smoothies, and other beverage topped $1.2 billion. The co-op’s dairy Foremost Farms’ ten cheese and seven applications. ingredient, cheese and butter products dairy ingredient producing facilities are • Nutritek® demineralized whey – sev- are exported by trading partner James located in the states of Wisconsin, Iowa, eral levels of protein and mineral Farrell & Co. of Seattle, Washington. and Minnesota; production volume is content provide mineral levels to About 10% of Foremost Farms’ ingredi- ranked in the top 15 U.S. cheese com- meet the specific dietary require- ent production is exported. panies. Foremost Farms’ predecessor ments of infant formula, organizations have 30 years of whey Foremost Farms dairy ingredients for confectionery coating, low-salt and marketing experience, and six Foremost export include sweet whey, demineral- frozen dessert products. Farms ingredient facilities are audited ized whey, dairy product by the American Institute of Baking. • Edible lactose – 80 and 200 mesh and solids/permeate, whey protein concen- refined forms; crystal size/type provides trate and lactose. Its butters and cheeses Cheese makes up more than half of desired solubility, mouthfeel and physi- including cheddar, mozzarella and pro- Foremost Farms’ total annual net sales. cal properties in confections/bakery, volone are likewise sold internationally. Foremost Farms offers bulk cheese as well frozen dessert, sauce/salad dressing, as cheese sticks, blends and shreds for Foremost Farms’ products reach mar- dry mix, frozen/canned and jam/jelly the foodservice and food processing kets including China, Thailand, the applications. industries. Philippines, Singapore, India, Turkey, Kyrgyzstan, Mexico, Ireland and Dairy ingredients account for a grow- Contact Information Denmark. The co-op continues to ing percentage of Foremost Farms’ Website: www.Foremostfarms.com explore new opportunities in dairy pro- annual sales, rising from 6.3% in 2004 Keith Gretenhart, Director of Sales & teins and other whey components, says to 9.1% in 2006. International cus- Marketing, Foremost Farms USA, Keith Gretenhart, Foremost Farms’ tomers in the bakery, pizza, food Baraboo, Wisconsin, USA director of sales and marketing. processing, infant formula, pharmaceu- e-mail: tical and feed industries utilize the [email protected] Joining Forces co-op’s whey-derived ingredients to Foremost Farms USA was created in achieve better taste, higher protein Jeff Vandel, Vice President, James 1995 through the merger of two content, product consistency, shelf life Farrell & Co., Seattle, Washington, USA Wisconsin dairy organizations, the and production efficiency. Foremost e-mail: [email protected] Wisconsin Dairies Cooperative and Farms additionally customizes ingredi- Golden Guernsey Dairy Cooperative. ents to meet the needs of new and existing products, Gretenhart says.

16 USDECNews | December 2007 More from USDEC

USDEC Newsletter Survey

Dear Reader, USDECNews is celebrating its first anniversary. We would appreciate it if you could complete this survey to let us know if the newsletter is meeting your needs and expectations. You may choose to complete the survey online at www.usdec.org/NewsletterSurvey.cfm or fill out the following questionnaire. Everyone who completes the survey by January 15th, 2008 will be entered into a drawing to win one of fifty 1GB USDEC USB drives.

Part I Please evaluate the 5 main sections of the newsletter by selecting the appropriate response to each statement/question. If you do not read a particular section, select “Not Applicable”.

Strongly Agree Neither Agree Disagree Strongly Not Agree nor Disagree Disagree Applicable Industry News The articles are easy to read. ■ ■ ■ ■ ■ ■ The topics chosen are interesting/ stimulating. ■ ■ ■ ■ ■ ■ This section is important to you, professionally, ■ ■ ■ ■ ■ ■ or to your business. Is the information currently meeting your needs/expectations? ■ Yes ■ No Please explain: ______

Cheese & Manufactured Products The articles are easy to read. ■ ■ ■ ■ ■ ■ The topics chosen are interesting/ stimulating. ■ ■ ■ ■ ■ ■ This section is important to you, professionally, ■ ■ ■ ■ ■ ■ or to your business. Is the information currently meeting your needs/expectations? ■ Yes ■ No Please explain: ______

Ingredients The articles are easy to read. ■ ■ ■ ■ ■ ■ The topics chosen are interesting/ stimulating. ■ ■ ■ ■ ■ ■ This section is important to you, professionally, ■ ■ ■ ■ ■ ■ or to your business. Is the information currently meeting your needs/expectations? ■ Yes ■ No Please explain: ______

Nutrition The articles are easy to read. ■ ■ ■ ■ ■ ■ The topics chosen are interesting/ stimulating. ■ ■ ■ ■ ■ ■ This section is important to you, professionally, ■ ■ ■ ■ ■ ■ or to your business. Is the information currently meeting your needs/expectations? ■ Yes ■ No Please explain: ______

17 USDECNews | December 2007 More from USDEC

Strongly Agree Neither Agree Disagree Strongly Not Agree nor Disagree Disagree Applicable Meet Our Members The articles are easy to read. ■ ■ ■ ■ ■ ■ The topics chosen are interesting/ stimulating. ■ ■ ■ ■ ■ ■ This section is important to you, professionally, ■ ■ ■ ■ ■ ■ or to your business. Is the information currently meeting your needs/expectations? ■ Yes ■ No Please explain: ______Part II Please select the appropriate response to each statement/question. Yes No I currently buy U.S. dairy products. ■ ■ I plan to increase the amount of dairy products I buy from the U.S. in 2008. ■ ■ The newsletter has positively changed my perception of U.S. dairy products. ■ ■ The newsletter has helped me identify new potential suppliers of U.S. dairy products. ■ ■ The newsletter has identified new applications for U.S. dairy products relevant to my business. ■ ■ The newsletter has increased my knowledge of the variety of dairy products offered by U.S. manufacturers. ■ ■ I usually read the newsletter the first week it is available. ■ ■ I share the newsletter with others. ■ ■ Have you participated in USDEC activities, such as seminars, trade missions, etc.? ■ ■ Is the overall layout of the newsletter easy to navigate? ■ ■ Read Download Online as PDF The newsletter is available to read online and to download as a PDF, which of these methods do you most often utilize? ■ ■

Part III Please respond to the following.

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Suggestions for future topics: ______

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Part IV Please fill out the following information to be entered into the drawing.

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We thank you for taking the time to complete this survey. Please send back to: U.S. Dairy Export Council 2101 Wilson Blvd. Suite 400, Arlington, VA 22201 USA Telephone 703-528-3049 • Fax 703-528-3705 • E-mail: [email protected]

18 USDECNews | December 2007