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y S CHEESE REPORTER Vol. 145, No. 16 • Friday, October 2, 2020 • Madison, Wisconsin FDA, USDA Sign Memo To Boost Trump Signs Bill To Replenish CCC Coordination On Dairy Exports Borrowing Authority; IDFA, NMPF, USDEC Praise MOU, Say It Will  Refer in a timely manner US House OKs Bill With dairy exporters to FAS and AMS Dairy Funding Help Exporters Deal With Foreign Requests who seek information about a service for which AMS or FAS has Washington—President Trump Washington—The US Food and timely communications relating to primary responsibility; on Thursday signed a continuing Drug Administration (FDA) and issues affecting US dairy exports, resolution that extends federal  Provide to AMS on a monthly US Department of Agriculture as appropriate, to prevent and/or basis all country lists of facilities government funding through Dec. (USDA) on Thursday signed a resolve any barriers to trade. exporting dairy products or, in the 11, 2020, and also includes provi- Memorandum of Understanding Under the new MOU, FDA event of significant changes to a sions related to farm and nutrition (MOU) outlining strengthened will: facility list, update or establish a program funding. coordination between FDA and  Enforce the Food, Drug, & list upon request; The legislation immediately two USDA agencies to facilitate Cosmetic Act and related statutes replenishes the borrowing author-  Upon request, provide veri- US dairy product exports. and regulatory requirements for fication to AMS of whether a US ity for USDA’s Commodity Credit The MOU, which became effec- dairy products; dairy producer or processor is in Corporation (CCC), according to tive Thursday, is between FDA  Serve as the lead agency good regulatory standing as soon as the National Milk Producers Fed- and USDA’s Agricultural Market- for communicating with foreign practicable, but no later than two eration (NMPF). The CCC funds ing Service (AMS) and Foreign governments with respect to the business days; farm bill initiatives, including the Agricultural Service (FAS). safety of exported US dairy prod- Dairy Margin Coverage (DMC)  Notify FAS and AMS in a Under the MOU, the agencies ucts, including but not limited to Program, as well as the Corona- timely manner of communica- will, individually and collectively, foodborne outbreaks, recalls, and virus Food Assistance Program tions related to US dairy exports facilitate dairy product exports by: providing technical assistance (CFAP), the second installment received by foreign governments; prioritizing trade facilitation with regarding FDA regulatory require- of which US Secretary of Agricul- and an emphasis on providing timely ments upon request from foreign ture Sonny Perdue announced last  Provide information to FAS responses to foreign governments governments; month. as soon as practicable, but no later and developing innovative solu-  Issue its Certificate to a For- Also, NMPF noted, the continu- than seven business days, when tions to foreign measures that may eign Government or Certificate of ing resolution includes $8 billion foreign governments seek informa- function as trade barriers; consid- Exportability, if requested by a US in nutrition assistance and extends tion regarding certification of milk ering the time, cost, and burdens dairy exporter; flexibility for school districts to and milk products. of demonstrating compliance for  Provide information to AMS make meals more affordable and USDA’s AMS under this MOU US exporters when developing and FAS related to the public accessible for students during the will: implementation solutions for for- health, safety, production, han- coronavirus pandemic. eign measures; and maintaining dling or transport of dairy exports Meanwhile, the House on Thurs- transparent, collaborative, and produced under FDA’s oversight; • See Dairy Export Memo, p. 8 day passed an updated version of the Heroes Act. The $2.2 trillion legislation, which is not expected Food Box Program Per Capita Cheese Consumption Hit to be approved by the Senate, Tops 100 Million Record High Of 38.59 Pounds In 2019 replaces the original Heroes Act, which was passed by the House in Boxes Delivered; Washington—Per capita US pound in 2014, 0.94 pound in May but not approved by the Sen- natural cheese consumption in 2015, 1.32 pounds in 2016, 0.54 ate. USDA Buys Mozz For 2019 reached a record high of pound in 2017 and 0.99 pound • See Dairy Funding, p. 7 Delivery During 2021 38.59 pounds, up from 38.25 in 2018. pounds in 2018, according to At 38.59 pounds, per cap- Washington—More than 100 mil- figures released Wednesday by ita cheese consumption last lion food boxes have been distrib- USDA’s Economic Research Ser- year was more than 10 pounds Sept Avg Prices – 2019 vs 2020 uted through the US Department Average CME Prices** vice (ERS). higher than in 1998, when it Class 3 and Class 4 Milk Price x 10 of Agriculture’s (USDA) Farmers Per capita cheese consump- was 27.84 pounds, and more $2.40 to Families Food Box Program, US tion has now set a new record than five pounds higher than in Secretary of Agriculture Sonny for nine consecutive years. It 2012, when it was 33.52 pounds, $2.20 Perdue announced Tuesday. has also increased every year according to the figures. In mid-September, USDA since 2008, when consumption Per capita consumption of Ital- $2.00 announced it had entered into of 32.39 pounds was down more ian-type cheese last year reached contracts with 50 entities for the than half a pound from 2007. a record high of 15.87 pounds, $1.80 third round of food box deliver- Last year’s per capita cheese up from 15.7 pounds in 2018 and $1.60 ies, which include contracts to consumption increase of 0.34 the fourth straight year in which purchase up to $1 billion. For the pound was the smallest rise in per per capita Italian cheese con- $1.40 ongoing third round of purchases, capita consumption since 2013, sumption topped 15 pounds. Per USDA is purchasing combination when per capita consumption of capita Italian cheese consump- $1.20 boxes to ensure all recipients have 33.69 pounds was up 0.17 pound tion has increased by more than access to dairy products, fluid milk, $1.00 from 2012. five pounds since 1998. Blocks** Barrels** Butter** NFDM** 3 Class 4 Class meat products and fresh produce. After that, per capita cheese • See Food Box Deliveries, p. 9 consumption increased by 0.74 • See Per Capita Record, p. 6 Page 2 CHEESE REPORTER October 2, 2020

Past Issues Read this week’s issue EDITORIAL COMMENT or past issues of Cheese Reporter on your mobile phone or tablet by scanning this Almost a decade after the DIAC QR code. finalized its report, the federal order DICK GROVES Cheese Reporter Publishing Co. Inc. ©2020 system remains, well, it remains a system desperately in need of a 2810 Crossroads Drive, Suite 3000 Publisher / Editor Madison, WI 53718-7972 major overhaul. (608) 246-8430 • Fax (608) 246-8431 Cheese Reporter http://www.cheesereporter.com e: [email protected] DICK GROVES tw: @cheesereporter Publisher/Editor e-mail: [email protected] 608-316-3791 MOIRA CROWLEY Pondering A Possible Dairy Pricing And Policy Commission Specialty Cheese Editor Last month, US Reps. Ron Kind Committee finished its work in dairy products. The 2018 farm bill e-mail: [email protected] 608-316-3793 (D-WI) and Mike Gallagher March 2011. authorized USDA to establish at (R-WI) introduced legislation to The Dairy Industry Advisory least three regional dairy prod- KEVIN THOME Advertising & Marketing Director establish a Dairy Pricing and Pol- Committee’s final report included uct and business innovation ini- e-mail: [email protected] icy Commission to evaluate the a total of 23 recommendations, tiatives, and the agency recently 608-316-3792 difficulties facing dairy farmers and and it’s interesting to look back at awarded $18 million to three such BETTY MERKES recommend solutions. While some some of those ideas and see how initiatives. Classifieds/Circulation Manager e-mail: [email protected] good ideas could come from this, much has been accomplished in Also, the DIAC recommended 608-316-3790 we’re not convinced that such a some areas, and how little has been that USDA support restriction of

REGULAR CONTRIBUTORS: Commission is really necessary. accomplished in other areas. dairy descriptors for use on products Jen Pino-Gallagher, Bob Cropp, Brandis As we reported in our Sept. For example, the DIAC recom- made from milk. The US Food and Wasvick, Dan Strongin, John Umhoefer 18th issue, the proposed Dairy mended that the elimination of Drug Administration did request You can e-mail our contributors at: Pricing and Policy Commission the Dairy Product Price Support input on the use of dairy terms on [email protected] would consist of dairy farmers, Program and the Dairy Export plant-based alternatives, but noth- The Cheese Reporter is the official dairy processors and other industry Incentive Program be explored, ing concrete has happened since publication of the following associations: experts who would provide recom- with the budget savings used to the comment period ended. California Cheese & Butter Association mendations on some of the biggest enhance the safety net for dairy One DIAC recommendation Lisa Waters, challenges facing the dairy indus- producers. The DIAC also rec- that hasn’t been dealt with yet 1011 Pebble Beach Dr, Clayton, CA 94517 try today. ommended that risk management called for the secretary of agri- Central Wisconsin Cheesemakers’ and Specific areas of focus would products for dairy farmers be sim- culture to review implications of Buttermakers’ Association Jim Mildbrand include federal milk marketing plified and improved. federal milk marketing orders, [email protected] order reforms; evaluating and That all happened, although it including, but not limited to, end- Cheese Importers Association of America identifying challenges and oppor- took a little time. The 2014 farm product pricing’s impact on milk 204 E St. NE, Washington, DC 20002 tunities for new markets for dairy bill terminated both the Dairy price volatility and the impact of Eastern Wisconsin Cheesemakers’ and exports; and how to respond to Product Price Support Program classified pricing and pooling on Buttermakers’ Association periods of heightened dairy pro- and the DEIP. processing investment, competi- Barb Henning, Henning’s Cheese 21812 Ucker Road, Kiel, WI 53042 duction during low prices by That farm bill also created the tion and dairy product innovation. International Dairy-Deli-Bakery Association considering better supply chain Margin Protection Program for A separate but related recommen- 8317 Elderberry Road, Madison, WI 53717 coordination. Dairy, which provided payments dation was to explore alternative to dairy producers when the differ- measures to the current end prod- Missouri Butter & Cheese Institute It’s worth noting that this is Terry S. Long, 19107 Factory Creek Road, bipartisan legislation, with one ence between the price of milk and uct pricing system. Jamestown, MO 65046 Democrat and one Republican the cost of feed (the margin) fell Almost a decade after the DIAC Nebraska Cheese Association sponsoring the bill. That alone below a certain level. MPP-Dairy finalized its report, the federal order Ed Price, Fremont, NE 68025 makes this an intriguing piece of proved to be a flawed and unpopu- system remains, well, it remains a New York State Cheese Manufacturer’s Assn legislation, in these hyper-partisan lar program, and was replaced in system desperately in need of a Kathyrn Boor, 11 Stocking Hall, times. the 2018 farm bill by the Dairy major overhaul. And the push for Cornell University, Ithaca, NY 14853 It’s also worth noting that this Margin Coverage Program. reforms seems to be intensifying as, North Central Cheese Industries Assn bipartisan legislation would appear Meanwhile, USDA’s Risk Man- among other things, fluid milk sales Lloyd Metzger, SDSU, Box 2104, Brookings, SD 57007 to have absolutely no chance of agement Agency launched a new continue to decline (notably, fluid milk sales last increased in 2009, North Dakota Cheese Makers’ Assn ever being enacted, for the simple Dairy Revenue Protection (Dairy- Chuck Knetter, Medina, ND 58467 reason that Congress isn’t going to RP) plan that’s intended to provide when the DIAC was established), Ohio Swiss Cheese Association be in session all that much between protection against an unexpected and massive volumes of milk are Lois Miller, P.O. Box 445, now and the end of the current decline in the quarterly revenue being depooled every month due Sugar Creek, OH 44681 congressional session, and it’s hard from milk sales relative to a guar- to Class III prices being higher South Dakota State Dairy Association to imagine that a dairy pricing and anteed coverage level. than statistical uniform prices. Howard Bonnemann, SDSU, Box 2104, Brookings, SD 57007 policy commission would be a high It’s safe to say that risk manage- The bottom line is that a priority, or even a low priority. ment products for dairy farmers Dairy Pricing and Policy Com- Southwestern Wisconsin Cheese Makers’ Association Those points aside, we’re left to have been dramatically improved, mission would probably come up Myron Olson, Chalet Cheese Coop, ponder the possibility of this pro- if not necessarily simplified, since with some good ideas, including N4858 Cty Hwy N, Monroe, WI 53566 posed new commission, and our the DIAC released its final report. the need to reform federal orders. Wisconsin Association for Food Protection thoughts keep returning to the There are several other inter- But since pretty much everybody Bob Wills Dairy Industry Advisory Commit- esting recommendations in that already agrees that federal orders PO Box 620705, Middleton WI 53562 tee established by the US Depart- DIAC report. For example, it was need reforming, perhaps a better Wisconsin Cheese Makers’ Association John Umhoefer, 5117 W. Terrace Dr., ment of Agriculture back in recommended that the secretary idea would be to actually start that Suite 402, Madison, WI 53718 August 2009 to review the issues of agriculture support programs reform process, rather than just Wisconsin Dairy Products Association of farm milk price volatility and that enhance value-added market repeating an unfulfilled recom- Brad Legreid, 8383 Greenway Blvd., dairy farmer profitability. That development for dairy farms and mendation from a decade ago. Middleton, WI 53562

CHEESE REPORTER (Publication Number: ISSN 0009-2142). Published weekly by Cheese Reporter Publishing Co. Inc., 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-7972; Phone: (608) 246-8430; Fax: (608) 246-8431. Subscriptions: $140.00 per year in USA; Canada and Mexico: $195.00 per year; other foreign subscribers, please write for rates. Advertising and Editorial material are copyrighted material. Any use without publisher’s consent is prohibited. Cheese Reporter does not endorse the products of any advertiser or any editorial material. POSTMASTER: If undeliverable, Form 3579 requested. Periodicals postage paid at Madison, WI. Address all correspondence to: Cheese Reporter, 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-7972 October 2, 2020 CHEESE REPORTER Page 3

a consultant to the baking indus- Pandemic’s Impacts On Food Systems Burrington To Join try, ADPI noted. Aired At Small Business Panel Hearing ADPI In January In her most recent CDR position, Burrington provided technical Washington—The House Small cultural supply chains. Farmers, 2021 After Retiring support for US dairy processors and Business Committee on Wednes- ranchers, and rural residents are end users on dairy ingredient func- day heard testimony from several also grappling with a deficient rural From WI CDR tionality and applications, cultured representatives of the agriculture health infrastructure and inad- Elmhurst, IL—K.J. Burrington will products, and beverages. She has and food industry about the impact equate access to broadband inter- join the American Dairy Products also provided technical support for of the coronavirus pandemic on net as the world continues to shift Institute’s (ADPI) staff as director- food companies globally through US food systems and the small daily essential tasks online,” said training, education, and technical visits and seminars provided by the businesses that depend on them. Rob Larew, president of National development, commencing Jan. 4, US Dairy Export Council. Burr- From farms and processing Farmers Union. 2021, ADPI announced today. ington is a long-standing member plants to grocery stores and restau- “While the disruptions caused Burrington, who has a B.S. and of the ADPI Center of Excellence, rants, the pandemic has exposed by the pandemic are unprec- M.S. in food science from the Uni- where she has been involved as numerous vulnerabilities across the edented, many of the problems versity of Wisconsin-Madison, has both a resource to ADPI membrs food system, according to a hearing we face are nothing new. Rather, been working as the dairy ingredi- as well as an instructor/subject memorandum from US Rep. Nydia the pandemic laid bare the fragil- ent applications program coordi- matter expert. M. Velazquez (D-NY), who chairs ity underlying parts of our current nator for the Wisconsin Center for Burrington will be based out of the panel. As social distancing and food and farm system. We should Dairy Research (CDR) since 1997. the Madison, WI, area, as well as stay-at-home orders became com- institute reforms that increase the She has over 30 years of experience ADPI’s headquarters location in monplace, and unemployment sky- resiliency of the system in order to in product development, including Elmurst, IL, and report directly to rocketed, millions of food insecure protect farm families and consum- past positions at Ridgeview Indus- Blake Anderson, ADPI’s president consumers turned to food banks to ers alike,” Larew continued. tries, the Keebler Company, and as and CEO. help feed their families. But at the same time, farmers had to dump milk, crush eggs, and plow under vegetables because of lost market opportunities, supply chain bottle- necks, and workforce challenges. “From panic buying, supply chain disruptions, to major operational challenges, the food retail industry has been faced with many obstacles since March,” said Jimmy Wright, owner and president of Wright’s Market in Ope- lika, AL, who testified on behalf of the National Grocers Association (NGA). Since President Trump declared a national emergency and the administration designated grocers as critical infrastructure businesses, independent grocers “have experienced sustained and unprecedented levels of demand for grocery and household products,” Wright continued. “The emergency triggered two of the biggest weeks in grocery retailing in documented history as we experienced the effects of panic buying and the closure of food service establishments.” Wright also addressed the economic discrimination in the grocery marketplace that’s allowed by a lack of antitrust enforcement. “Dominant players in the grocery marketplace and e-commerce giants are actively using their ‘buyer power’ to impose discrimi- natory conditions on manufacturers and suppliers that disadvantage smaller, independent grocers like Wright’s Market and impede our ability to compete,” Wright said. “The current crisis has exac- erbated economic discrimination in the grocery sector,” Wright added. “Since March, the large firm ‘power buyers’ have leveraged their market power to demand pri- oritization for distribution of high- demand products while extracting concessions on wholesale pricing.” “The pandemic has led to dramatic shifts in consumer demand and the shuttering of processing facilities, which has crippled agri- For more information, visit www.tetrapakusa.com Page 4 CHEESE REPORTER October 2, 2020

1. Farm Bureau looked at make WCMA PERSPECTIVES allowances in milk classes and while they did not draw a definite con- from our clusion, they made some curious A Processor Perspective observations. A supporting paper, Background on Milk Price Formula archives On Price Reforms Make Allowances computes the value of make allowances – such JOHN UMHOEFER 50 YEARS AGO as the 20 cent/lb. make allowance Oct. 2, 1970: Monroe, WI— Executive Director for Cheddar in Class III equaling Robert Marty, 64, prominent Wisconsin Cheese Makers Association $3.17 per hundredweight – and member of Wisconsin’s cheese 608-286-1001 concludes “the make allowances industry and well-known jumhoefer @wischeesemakers.org effectively reduce the regulated throughout the US, passed away value of milk in all classes.” unexpectedly here this week at Gyrating milk and cheese prices than the federal order pool, and Well, yeah. The entire value of his home. For much of his life, in this the most unusual market- be used to shore up bottom lines dairy products cannot be handed he was involved with Carl Marty ing year in generations has spurred after two unprofitable months over to the milk supplier or the calls for federal order reform with a on the cheese side. In May, for manufacturer would have no & Co. cheese operations, and focus on negative PPDs. example, the all milk price paid to money to pay employees, or the served as past president of the The discussion deserves a pro- farms ($13.60/cwt) exceeded the electric bill, or fixed expenses. The National Cheese Institute. cessor perspective. monthly value of Cheddar cheese backgrounder grinds on this point: In August, Hoard’s Dairyman ($1.29/lb) used in the Class III “Make allowances were the high- Sugarcreek, OH—The “eyes” opined “As cheese soared to record price. By June, the all milk price est in Class III at $16 billion since of the nation will be on Swiss prices, frustration boiled over in in Wisconsin reached $19.50/ 2010…. Total make allowances cheese here this week at the 18th the countryside. That’s because cwt.; then $22.30/cwt. in July and since 2010 have represented $33 annual Ohio Swiss Festival. With negative producer price differen- $19.40/cwt. in August. billion.” Despite this tabulation of 18 Swiss cheese factories located tials (PPDs) torpedoed June milk Wild price volatility exposes the all the money “lost” to make allow- within 10 miles of Sugarcreek, checks with deductions over $7 per weaknesses in a regulated pricing ances, any reform that retains this this area is widely recognized cwt. in four Federal Milk Market- system. In each month’s federal system would have to look at rais- as the center of the US Swiss ing Orders.” order milk pool, the value of Class ing these 12-year-old allowances cheese industry. The frustration was real, but mis- I fluid milk is set in advance – six to reflect the rising costs of steel, placed. A negative PPD does not weeks before the value of Class III concrete, packaging, transporta- 25 YEARS AGO mean farms received less than they and Class IV milk. Skyrocketing tion and labor. Sept. 29, 1995: Washing- “should have,” but rather reflects cheese or butter prices in that gap 2. Farm Bureau concludes the ton—The USDA published a a fast-rising cheese price pushing can flip PPDs – the added value industry should “Enhance price proposed rule seeking comment the value of Class III milk past the of Class 1 milk – to negative and discovery by expanding manda- on the proposed elimination of earlier announced value for Class the subsequent decision by cheese tory price reporting to include I fluid milk. “All that means,” makers to pay their farms outside specifications governing the use the wholesale sales prices of more of “Cheese Alternate Products” economists Mark Stephenson and of the pool can reduce the overall finished dairy products.” The final Andrew Novakovic wrote in a value of the pool. in the national school lunch report proposes a pilot program “to program. Cheese alternates are June 26 Information Letter, “is that Stephenson and Novakovic, in expand mandatory price reporting we paid out more money to pro- their June 26 Information Letter, cheese substitutes that are used for select dairy products such as as economical replacements for ducers in Class III component val- state: “Because the higher valued mozzarella, dry whole milk, whey ues than we collected from plants Class III milk is withdrawn from natural or processed cheese in protein concentrates and products the school lunch program. across all classes of milk. For farm- the pool, it pulls down the total sold under the terms of a forward ers, it is really just a curiosity in the and average value of the pool. The contract and delivered that week.” Madison—Westfield Farms, accounting method.” (new) blend price is lower than it While it’s tempting to look at Hubbardston, MA, earned Best Negative PPDs are linked to would have been had Class III milk higher value dairy products (rather stayed.” Reform should address the of Show here this week at the the decision cheese manufactur- mild Cheddar, butter, nonfat dry ers must make to participate in problem – the unaligned pricing American Dairy Goat Products milk and dry whey) when discov- an order pool or remove some or dates for milk classes– rather than Association national competi- ering prices for federal order price all of their patron milk from the industry’s reaction to the problem. tion with a Classic Blue Log formulas, these formulas are, by pool (depool). On the heels of a American Farm Bureau stepped entry. Reserve Best in Show design, calculating a base price for devastating spring for cheese prices into the federal milk marketing went to Cypress Grove Chevre, milk used in various ways. Lifting and profitability, cheese makers order reform discussion this sum- McKinleyville, CA, for an entry government-set base prices by dis- depooled heavily in the Upper mer. A working group spent over a covering more cents in value-added called “Humboldt Fog.” Midwest Order this summer: year studying orders and milk pric- dairy products moves the industry pooled pounds of Class III milk ing, and released a final report in away from the ability to offer free- 10 YEARS AGO diminished from 2.3 billion pounds July 2020. The report has several market, competitive prices – away Oct. 1, 2010: Columbus, in May to 542 million pounds in positive ideas, but two policy pri- from free-market milk price premi- OH—The Ohio Department of June. orities from this deep dive into the Agriculture’s regulation on the In Wisconsin, depooling meant workings of federal orders merit ums – and erodes processors’ ability to invest in new technology, prod- labeling of rBST-free dairy prod- the rising value of cheese could be feedback from a processor perspec- ucts violates the First Amend- paid directly to producers, rather tive. ucts and marketing. The commodities used in federal ment rights of dairy processors, order price formulas have already a US Appeals Court ruled this abused the concept of base prices. week. The case concerns label- When USDA added the dry whey ing of milk products to reflect the price to the Class III milk price for- non-use of artificial hormones by mula, most cheese makers in the members of two trade organiza- 1933 Cofrin Drive Green Bay, WI 54302 [email protected] 920.468.6261 www.fiberglasssolutions.us US found themselves paying dairy tions: IDFA and the Organic farmers for a product they don’t Trade Association. even make. The correct base commodity should have been skimmed, Madison—The eighth annual raw whey. World Dairy Expo Champion- ● Brining Systems & Design A year of volatile markets has ● Fiberglass Tanks ship Dairy Product Contest ● Sanitary Wall & Ceiling Systems rekindled talk of milk price reform. auction, held here this week ● Spray Systems Certainly, reform is overdue, but all ● Brine Tank Ladders & Covers at World Dairy Expo, raised a ● Refurbish & Repairs perspectives must be heard before record total of $42,540 – more ● Solutions through Fiberglass milk pricing and handling is rei- than double last year’s total. For more information, visit www.fiberglasssolutions.us magined for a changing world. JU October 2, 2020 CHEESE REPORTER Page 5

able practices, especially where  In addition to adopting a Consumers Confused About Packaging food and beverage packaging is comprehensive labeling system, Recyclability; Better Packaging Urged concerned. Specifically, brands brands should make a concerted should consider switching prod- effort to be more transparent in Washington—The National Con- in recycling practices, cause confu- ucts packaged in plastics, certain marketing their products, espe- sumers League (NCL) has released sion among consumers, the report cartons, and flexible pouches to cially as it relates to the recyclabil- a report on the rampant consumer explained. Plastic resin identifica- metals, where appropriate, such as ity of certain food and beverage confusion about food and bever- tion codes can lead consumers to aluminum and steel, or glass, both products. For items that are not age packaging recyclability, and both overestimate and underes- of which are endlessly recyclable. truly recyclable, brands should this week called for changes to timate their recyclability. Incor-  Alternately, in cases where refrain from including imagery sustainability in food and beverage rect disposal can lead to recycling switching to metal or glass packag- associated with easy recycling, and packaging for brands, retailers and stream contamination and cost ing is not an option, brands should instead, clear, detailed information policymakers. increases due to additional need consider packaging that is either about the recyclability of certain The NCL report examines the for sorting. biodegradable or compostable. products should be easily acces- recycling enterprise in the US, The report makes several rec-  To help better educate and sible for consumers. consumer understanding and con- ommendations for brand manufac- inform consumers, brands should Like brands, retailers should fusion regarding recycling sym- turers: adopt a comprehensive and uni- adopt a comprehensive and uni- bols, and packaging options which  While in recent years some form labeling system, like those form labeling system for their contribute to sustainability and a brands have made a shift to offer- offered by SmartLabel and How- private label products to clearly circular economy or, alternatively, ing more sustainable and environ- 2Recycle, to clearly communicate communicate the recyclability of pollution and waste. mentally friendly products, more the recyclability of packaging and packaging and to encourage con- As economic incentives to brands should continue to consider to encourage consumers to recycle sumers to recycle effectively, the claim sustainability of products ways they can adopt more sustain- effectively. report said. and packaging have increased, so have companies’ efforts to market to environmentally conscious consumers, the report noted. However, in doing so, the definition of susti- nability has become muddled. Some of the sustainability claims made by brands and retailers are not intentionally misleading, but are instead expressions of a “con- fusing, splintered system which lacks standardization,” the report explained. Also, even if some items are recycled correctly, as indicated by labels or instructions on the packaging, sustainability-marketed products often fail to clarify the continued ability of these materials to be recycled. As in the case of many plastics, the practice of downcycling low- grade plastics into other items, which then become single use, is “almost certainly not widely understood among consumers. More responsible marketing, sustainable packaging choices, and consumer education will help to address these challenges,” the report added. The economic viability of recycling is inherently linked to the sustainability of food and beverage products, according to the report. If recycling operations are unable to remain financially viable, they will cease to collect packaging waste, which will further exacer- bate landfill growth and the plastic pollution crisis. Plastic remains a commonly used packaging material among brand manufacturers and primar- ily due to its low cost, the report noted. But the cost calculation fails to take into account long- term costs, including the cost of pollution clean-up, damage to recycling machinary and facility shutdown from plastic bags and wrap, and ongoing negative contribution to climate change, in the form of ocean acidification as plastics break down in saltwater. The myriad of recycling labels, unjustified use of the Mobius Loop APT-INC.com | 877-230-5060 | Employee Owned and Operated triangle, and significant variations For more information, visit www.APT-Inc.com Page 6 CHEESE REPORTER October 2, 2020

Per Capita Record sumption has topped 15 pounds. than doubled since 2007, when it 2017 and 2016 but down from 0.32 (Continued from p. 1) Despite topping 15 pounds in was 2.68 pounds. pound in 2015. each of the past three years, last According to the USDA’s fig- Hispanic cheese: 0.93 pound, Within the Italian cheese cate- year marked the 10th straight year ures, per capita consumption in a new record, up from 0.88 pound gory in 2019, per capita Moz zarella in which per capita consumption 2019 of other types of cheese typi- in 2018. Per capita consumption consumption reached a record high of American-type cheese was less cally made from cows’ milk, with of Hispanic cheese has more than of 12.48 pounds, up from 12.21 than per capita consumption of comparisons to previous years, was tripled since 1999, when it was pounds in 2018. Per capita Mozza- Italian-type cheese. as follows: 0.30 pound.

Per Capita Per Capita Per Capita Per Capita Hispanic Cheese Consumption Mozzarella Consumption Cheddar Consumption 1.4Swiss Consumption 14.01997 – 2019; pounds 1997 – 2019; pounds 1997 – 2019; pounds 1997 – 2017; pounds 1.3

13.0 1.2 1.1

12.0 1.0 0.9

11.0 0.8 0.7

10.0 0.6 0.5

9.0 0.4 0.3

8.0 0.2 97 00 05 10 15 19 97 00 05 10 15 19 97 00 05 10 15 19 97 00 05 10 15 19 rella consumption has increased by To put that in historical per- Cream and Neufchatel: 2.62 Other cheese: 1.38 pounds, more than four pounds since 1998. spective, back in 1970, per capita pounds, a new record high, up down from 1.48 pounds in both By contrast, per capita con- American-type cheese consump- from 2.59 pounds in 2018 and also 2018 and 2017. sumption of Italian cheeses other tion totaled 7.0 pounds, while per up from 2016’s record high of 2.61 In 2019, per capita consumption than Mozzarella cheese in 2019, at capita Italian-type cheese con- pounds. Per capita consumption is of imported cheese not made from 3.40 pounds, was down from 2018’s sumption totaled 2.05 pounds. up more than half a pound since cows’ milk (this includes products 3.49 pounds. Within the American-type 1995. that are distinguished as clearly That marked the second straight cheese category in 2019, per cap- Swiss cheese (including not from cows in the import data) decline in per capita consump- ita Cheddar cheese consumption imported Emmenthaler and totaled 0.27 pound, up from 0.26 tion of other Italian cheeses, after totaled 10.09 pounds, down from Gruyere): 1.12 pounds, up from pound in 2018 but down from 0.30 it reached a record high of 3.51 10.27 pounds in 2018, down from 1.08 pounds in 2018 and the high- pound in 2017. pounds in 2017. 2017’s record high of 11.09 pounds est level for Swiss cheese since Per capita consumption of pro- Despite declining for two con- and the lowest level since 2014’s 2011’s 1.14 pounds. cessed cheese products last year secutive years, per capita consump- 9.86 pounds. Muenster: a record 0.55 pound, totaled 7.0 pounds, down from the tion of other Italian cheeses has By contrast, per capita consump- up from 0.54 pound in 2018. Per 7.08 pounds of processed cheese risen by more than one pound since tion of American-type cheeses capita Muenster consumption has consumed in 2018. 2001, when it was 2.34 pounds, other than Cheddar (this includes now been half a pound or higher Within the processed cheese according to ERS figures. Colby, Monterey Jack, washed curd for five straight years. products category, per capita con- Per capita consumption of Amer- and stirred curd) last year reached Brick cheese: 0.01 pound, sumption of processed cheese a record high of 5.45 pounds, up ican-type cheese last year reached unchanged from each of the previ- was 4.65 pounds, down from 5.24 a record high of 15.54 pounds, up from 5.14 pounds in 2018, accoring ous five years and down from 0.03 pounds in 2018; and per capita from 15.40 pounds in 2018 and the to ERS figures. pound in 2013. consumption of cold pack, cheese third consecutive year in which per Per capita consumption of other Blue cheese (including Gor- foods, and other foods and spreads capita American-type cheese con- American-type cheeses has more gonzola): 0.31 pound, unchanged totaled 2.35 pounds, up from 1.84 from 2018, up from 0.30 pound in pounds in 2018.

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Dairy Funding UK Publishes New Voluntary Salt age) and 2.0 grams salt or 800 mil- (Continued from p. 1) ligrams sodium (maximum); the Reduction Targets For Cheese, Butter 2024 target is 1.63 grams salt or The dairy title of the bill provides 650 milligrams sodium (range aver- $500 million for the US Depart- London, England—Public Health Cottage cheese, plain and fla- age) and 2.0 grams salt or 800 mil- ment of Agriculture (USDA) to England (PHE) earlier this month vored: 2017 target was 0.5 gram ligrams sodium (maximum). carry out a recourse loan program published new voluntary salt reduc- of salt or 200 milligrams of sodium Salted butters and buttery to make purchases of dairy prod- tion goals to encourage food com- (range average) and 0.53 gram of spreads: 2017 target was 1.48 ucts from dairy processors, packag- panies to further reduce salt levels salt or 210 milligrams of sodium grams salt or 590 milligrams sodium ers, and merchandisers. in the foods that contribute most (maximum); the 2024 target is (range average) and 1.68 grams salt Also, the bill provides $500 mil- to salt intakes. 0.45 grams salt or 180 milligrams or 670 milligrams sodium (maxi- lion to pay for milk to be processed Work on salt reduction began in sodium (range average) or 0.48 mum); 2024 target is 1.33 grams into dairy products and donated to the UK in 2004, following advice gram salt or 190 milligrams sodium salt or 530 milligrams sodium non-profit entities (such as food from a 2003 report that recom- (maximum). (range average ) and 1.60 grams banks. Under the framework of the mended population average salt Mozzarella: (excludes fresh salt or 640 milligrams sodium. Dairy Direct Donation Program, intakes should be reduced to six Mozzarella sold in retail outlets) Lightly salted butter: 2017 tar- the dairy processor and non-profit grams per day. Despite progress in 2017 target was 1.35 grams salt or get was 1.13 grams salt or 450 milli- would develop a plan for dona- some food categories, the current 540 milligrams sodium (process- grams sodium (processing average); tion and distribution, that plan is average is 8.4 grams per day. ing average); the 2024 target is the 2024 target is 1.06 grams salt or reviewed by USDA, and USDA Four previous sets of voluntary same as the 2017 target. 425 milligrams sodium (processing pays for the milk associated with salt reduction targets for individ- Blue cheese: the 2017 target average). the donated products at the cur- ual categories have been published was 2.0 grams salt or 800 milli- PHE is also encouraging the food rent appropriate class value. by the UK government, in 2006, grams sodium (processing average); industry to support the national The bill allows USDA to adjust 2009, 2011 and 2014. The new the 2024 target is 1.80 grams salt or effort against the coronavirus and the existing Milk Donation Pro- targets published are the fifth set 720 milligrams sodium (processing obesity, with voluntary calorie gram payments to match the level of voluntary salt reduction targets. average). reduction guidelines to make it of payment provided by this new, As with previous sets of targets, Processed cheese spreads: the easier for UK consumers to choose emergency program. it is understood that the levels set 2017 target was 1.63 grams salt or healthier options in everyday meals Further, the bill provides neces- for some categories are consid- 650 milligrams sodium (range aver- and foods. Voluntary guidelines for sary cash flow assistance to small- ered aspirational and will require age) and 1.8 grams of salt or 720 industry are a key part of the gover- and mid-sized dairies that have acceptable technical solutions if milligrams sodium (maximum); ment’s obesity strategy. grown over the last seven years by they are to be achieved in full, but the 2024 target is 1.55 grams salt Calories can be particularly high establishing supplemental margin progress towards these goals will or 620 milligrams sodium (range in takeaway and restaurant food, coverage based on the difference bring public health benefits. average) and 1.8 grams salt or 720 PHE noted. For example, a pizza between 2019 actual produci- The aim is for all products or milligrams sodium (maximum). for one sold at a restaurant can ton and Dairy Margin Coverage volume sales within an individual Other processed cheese: the have as many as 2,320 calories, (DMC) production history. category to meet the targets. How- 2017 target was 1.7 grams salt or compared to 1,368 calories when And the bill supports DMC as ever, because there can be techni- 680 milligrams sodium (range aver- purchased from supermarkets. an effective risk management tool, cal or other difficulties associated reducing the cost of DMC premi- with this, businesses can say they ums for operations that commit to have met the target(s) for an indi- participating in the program for vidual sub-category if 95 percent 2021-23 by providing a payment of products or volume sales meet worth 15 percent of annual pre- the targets and if efforts have been mium costs. made to reduce salt in the remain- In the area of nutrition pro- ing 5 percent of products or vol- grams, the bill provides $10 billion ume sales to a minimum. to support anticipated increases in Voluntary salt targets for 2017 participation and to cover program and 2024 for various dairy prod- cost increases related to flexibili- ucts are as follows (the two types of ties provided to SNAP by other averages used are a processing aver- acts addressing the coronavirus. It age, which is used to account for also provides an additional $400 ranges of salt levels that occur in million to provide access to nutri- a single product, and a range aver- tious foods under the Special Sup- age, which is used to take account plemental Nutrition Program for of a range of different flavors); tar- Women, Infants and Children, and gets are grams of salt or milligrams includes $450 million to help local of sodium per 100 milligrams: food banks meet increased demand Cheddar and other similar during the pandemic. “hard pressed” cheeses, including Another section would establish Cheshire, Lancashire, Caerphilly, a $120 billion program adminis- Double Gloucester, Leicester, tered by the US Treasury Depart- Derby, etc.: 2017 target was 1.75 grams salt or 700 milligrams sodium WAITING IS OVER ment to provide restaurants and TANGO. ANALYSIS TO GO. similar businesses, such as bars and (range average) and 2 grams salt food trucks, with a grant for the or 800 milligrams sodium (maxi- Instant Results with FT-NIR Spectroscopy difference between the business’s mum); 2024 target is 1.66 grams or 665 milligrams sodium (range Faster, simpler, and easier to use - with TANGO 2019 revenues and estimated 2020 your NIR analysis speeds up. TANGO has revenues for each quarter. Funds average) and 1.90 grams salt or 760 exactly what users require of an FT-NIR would go to payroll and other eli- milligrams sodium (maximum). spectrometer suitable for a food analysis lab: gible expenses, and would need to “Fresh” cheeses, including soft robustness, high precision and straightforward white cheese, flavored or unfla- Contact us for more details: operator guidance. be used by June 30, 2021. www.bruker.com [email protected] vored, including reduced fat prod- An intuitive user interface with touch screen Sean Kennedy, executive vice Bruker Optics operation makes the analysis of food president of public affairs for the ucts but excluding Cottage cheese, 40 Manning Road ingredients and ﬁ nished food available Billerica, MA 01821 to everybody. National Restaurant Association, Brie, Camembert and other similar Tel. +978-439-9899 called this provision a “tremendous soft rinded cheeses: 2017 target was Fax. +1 978-663-9177 step in the right direction,” but was 0.5 gram or 200 milligrams (range Applied Spectroscopy disappointed that it denied federal average) and 0.68 grams salt or 270 Innovation with Integrity support for small regional chain milligrams sodium (maximum); restaurants. 2024 target is the same as 2017. For more information, visit www.bruker.com/dairy October 2, 2020 CHEESE REPORTER Page 8

Dairy Export Memo tionnaires or applications required government requirements, lead Allied Blending Gets (Continued from p. 1) by a foreign government, collabo- discussions or negotiations of the rating with FDA and FAS to pro- certificate with foreign govern- Patent For Dry Blend  Serve as the lead agency for vide any necessary US government ments seeking to advance the US providing export-related services review or endorsements; position that certification is not For Making Extended to dairy exporters, including the  Develop export verification necessary or justified as appropri- Cheese Product issuance of dairy sanitary certifi- programs to meet foreign require- ate, and when existing attestations Washington—The US Patent and cates for exports of milk and milk ments and facilitate dairy exports, are insufficient develop and pro- Trademark Office has awarded a products when necessary; collaborating with FDA and FAS pose a certificate to the foreign patent for dry blends used in the  Collaborate with FAS to as needed; and government that has been cleared process of making extended cheese ensure dairy sanitary export cer-  Communicate with FDA and by the agencies; products with improved meltabil- tificates are offered to foreign gov- FAS in a timely manner when for-  In collaboration with the ity and firmness profiles. ernments when implementation of eign governments inquire about relevant agency share informa- Inventors are Mostafa Galal new or existing foreign certificate the safety of US dairy products. tion about FDA and AMS export and John Fannon. The patent was requirements necessitates US gov- Under the MOU, USDA’s FAS certification programs with for- assigned to Allied Blending LP. ernment involvement; will: eign governments upon request An “extended cheese product”  When developing a new dairy  Serve as the lead agency for of either the foreign government, communicating with foreign gov- FDA, or AMS; and is a food product based on a natu- sanitary certificate in response to ral cheese, but wherein filler mate- a foreign measure, draw first from ernments regarding the facilitation  For all foreign measures being of dairy exports; implemented on US dairy export- rial has been added to the natural the library of attestations previ- cheese to extend the mass and vol- ously approved by FDA, rely-  Serve as the lead agency for ers, and in collaboration with coordinating interagency collabo- the agencies participating in the ume while maintaining or improving on the development of new ing the physical properties of the attestations in collaboration with ration related to US dairy exports, MOU, attempt to reach agree- including coordinating the input ment with a foreign government natural cheese (i.e., meltability, FAS and FDA only when exist- stretchability, browning, elasticity, of and clearance by FDA and AMS to accept an implementation plan ing certificates and attestations free oil formation, etc.), the patent before providing US responses to that considers the time, cost and are insufficient to meet the foreign description explained. foreign government requirements; burden of implementation for US government’s requirements; Dry blend refers to the “dry”   In a timely manner, share all exporters and, where applicable, Implement any dairy sani- (i.e., less than 15 percent water) relevant information regarding US US agencies. tary certificate for milk and milk starting material one would use in milk and milk products FAS may Finally, the agencies participat- products in a timely manner which making an extended cheese pro- receive from foreign governments ing in this MOU agreed to collabo- ensures that it is available to US duction, the patent noted. A dry and provide back to foreign gov- rate on the following future work: exporters before the foreign gov- blend is a homogenous mixture of ernments with FDA and AMS;  Develop model attestations ernment’s relevant enforcement the ingredients that may be sold date;  When facilitating the issu- for dairy sanitary certificates that FAS identifies may address emerg- as a pre-packaged mix to a cheese  Maintain responsibility for ance of dairy sanitary certificates, manufacturer or user. Normally managing facility-specific ques- receive and analyze the foreign ing trends in dairy exports;  Investigate the feasibility of water and some type of fat would developing an FDA electronic be added to produce the extended platform for sharing information cheese product. A desired flavor with USDA on US dairy facilities could also be added in to resemble in good regulatory standing with the desired cheese taste. FDA; The dry blend that is provided in  Commit to ensure the rele- the patent for use in the extended vant technical staff of the agencies cheese product is designed to jointly meet on a monthly basis, improve flowability of the final or another frequency as mutually cheese product, stretch, texture, agreed, or as required to address coloring, blister characteristics, new or emerging issues; and and/or nutritional composition.  Periodically review the func- In one embodiment of the inven- tioning, utility, and necessity of tion, a pre-filled cheese extender At H&C we are constantly the MOU to ensure it remains an package has a dry blend compris- effective and efficient means for ing a 40-70 percent food starch, developing solutions facilitating dairy exports. 3-18 percent whey, 5-25 percent to enhance efficiency “In recent years, more and more emulsifiers, and 0-8 percent gums, and drive growth countries have erected obstacles wherein said dry blend comprises and barriers to US dairy exports, less than 15 percent casein and is including increasingly complex homogenously blended and filled requirements for statements, cer- into said pre-filled cheese extender tificates, questionnaires, and facil- package. ity listings,” noted Michael Dykes, In another embodiment, the president and CEO of the Inter- pre-filled cheese extender package national Dairy Foods Association. has a dry blend comprising a 50-60 “This MOU keeps our dairy indus- percent modified food starch, try and US government a step 13-16 percent whey, 9-20 percent ahead, positioning US dairy for emulsifiers, and 2-6 percent gums. growth by streamlining roles and In an embodiment, said blend fur- resources already in place.” ther comprises 0-5 percent of an “This new partnership ensures acidulant. that the staff at USDA and FDA A number of different types Our solutions offer Reduced work injuries Increased running times are working together in the most of starches can be incorporated enhanced return Increased product quality efficient way possible to lower bar- on investment and into the dry blend, according to Reduced wastage riers for our farmer’s dairy exports,” the patent description. Suitable operational efficiency: Smaller footprint said Jim Mulhern, president and starches include vegetable starches CEO of the National Milk Produc- and grain starches. The starch can ers Federation. “We appreciate all be modified or native. Examples of US Toll Free 800-351-1745 of the hard work from both agen- suitable gums that can be incorpo- NZ Phone +64 6 872 7140 Email [email protected] cies and stand ready to support the rated include, but are not limited USDA and FDA’s commitment to, xanthan gum, guar gum, konjac to open new doors for US dairy flour and locust bean gum. For more information, visit www.hadencustance.com exports.” Visit www.alliedblending.com October 2, 2020 CHEESE REPORTER Page 9

Food Box Deliveries Four Plausible Scenarios For Dairy restrictions and high technological (Continued from p. 1) transition. Environmentally engi- Industry’s Future Outlined In New Study neered and intelligence-driven Coverage in the third round allo- achievements. This includes: very cates food boxes to states based on Lausanne, Switzerland—A joint technological transition; continued few mega-factory farms remain, due the internal need of the state with study recently completed by Tetra consolidation towards mega-fac- to technological and regulatory the goal of providing coverage to Pak and the Lund University tory farming; continued, moderate pressure; artisanal/premium cheese entities in every county in the US. School of Economics and Manage- plant-based growth; fermentation/ and dairy continue to thrive; cul- Eligibility for the third round ment presents four plausible sce- lab-based protein remains niche; tured dairy protein production is was open to entities who could narios for the future of the dairy and increased global milk move- cost-effective and reaches mass meet USDA’s specifications and industry. ments to meet demand in dairy- market scalability; highly func- whose proposals illustrated cov- The study analyzes six key deficit countries. tional cultured liquid milk emerges erage of opportunity zones and global markets – the US, United Green Dairy: Marked by strong due to cost advantages over heav- addressed costs incurred deliver- Kingdom, China, India, Nigeria socio-environmental restrictions, ily taxed animal-based products; ing product, among other factors. and Brazil – to examine uncertain- driving the dairy industry to invest and strong plant-based growth USDA’s Agricultural Marketing ties of social environmental forces heavily to reduce carbon footprint, based on nutritional sustainability, Service announced the awarding of and technological transitions that the main driver for this scenario, improved taste and texture, as well contracts to four companies for the could shift the dairy landscape in which includes: technological as policy “nudges.” purchase of a total of 82,566,250 the next 10 years. transition is low; only a few mega- These four scenarios are all pounds of Mozzarella cheese for “The food and beverage sector factory farms remain after major plausible, the study pointed out. delivery during 2021. will undergo an enormous trans- changes to subsidy regulations plus Each one is very different, but they Contracts were awarded as fol- formation over the next decade, new animal-based food taxation all have points in common: lows; the purchase price for each with the dairy industry feeling and stricter welfare policies; cost  Large, efficient dairy manu- delivery period is the accepted dif- this most acutely,” commented increases lead to higher cow-based facturers without close farming ties ferential price per pound indicated, Frederik Wellendorph, vice presi- dairy prices, especially for cheese (cooperative model) may be more plus the applicable previous week’s dent Business Unit Liquid Food, and butter; strong plant-based flexible than other manufacturers. average of the CME cash market Tetra Pak. “Clearly, many chal- growth; and fermentation-based  Farsighted food conglomer- price for 40-pound Cheddar cheese lenges lie ahead, but there are dairy protein remains a premium ates may have smart investment block trading: plenty of opportunities for manu- niche but faces consumer resis- strategies that cover more than Dairy Farmers of America: facturers too. tance due to insolved GMO issues. one technological approach. 846,220 pounds of LMPS fro- “The key to success in the new New Fusion: Dominated by  Food entrepreneurs (niche zen Mozzarella, 8/6-pound frozen landscape will be in embracing flex- innovative technologies and pro- manufacturers) will have opportu- loaves, at a price differential of ibility and proactively responding cesses. Novel combinations of pro- nities to provide relevant innova- 4.51 to 9.93 cents per pound; and to the wave of disruptive changes,” teins from different sources. This tions and value propositions. 12,625,375 pounds of low moisture Wellendorph added. scenario includes: only weak incre- The four scenarios present a part skim unfrozen Mozzarella pro- The 18-month study completed mental environmental improve- myriad of implications that could cessor pack, at a price differential by Lund University School of Eco- ments; fermentation-based dairy change the business environment. of negative 2.32 cents to positive nomics & Management during companies reach mass-market Anticipating the degree of trans- 4.93 cents per pound. 2018-19 set out to uncover fresh scalability; drinking milk is the formation, Tetra Pak said it has insights into the shifting landscape “last bastion” for conventional Leprino Foods Dairy Prod- already started collaborating with of the dairy industry. The aim was dairy; artisanal/premium dairy and start-ups and academia to accel- ucts Company: 403,200 pounds to explore what the dairy value cheese continue to thrive; moderate understanding of the perfor- of lite shredded frozen Mozzarella, chain might look like in 2030. erate plant-based growth despite mance of different proteins under 30-pound box, at a price differ- The result was the following advances in nutritional profile different processing conditions. ential of 5.06 to 12.45 cents per four scenarios, with very different and texture; and fusion products Through this, the company said pound; and 44,003,750 pounds of outcomes: combine “three worlds” of animal, it will create solutions that enable LMPS unfrozen Mozzarella proces- Dairy Evolution: No major plant, and lab-based proteins to customers to take advantage of sor pack, at a differential price of surprises; current trends continue create thriving new personalized changes ahead in traditional cow- negative 8.20 cents to negative with only incremental changes. nutrition segment. based milk, plant-based beverages 2.36 cents per pound. This includes only incremental Brave New Food: Combines and lab-grown dairy alternatives. Miceli Dairy Products Com- environmental improvements; low both strong socio-environmental Visit www.tetrapak.com pany: 3,628,800 pounds of low moisture part skim shredded frozen Mozzarella, 30-pound box, at a price differential of 15.49 to 25.16 cents per pound; 2,378,880 ounds of low moisture part skim Mozzarella, 8/6-pound loaves, at a price differential of 7.49 to 12.08 cents per pound; 1,774,080 pounds of lite shredded frozen Mozzarella, 30-pound box, at a price differential of 16.49 to 24.55 cents per pound; and 6,703,375 pounds of low moisture part skim unfrozen Mozzarella processor pack, at a price differential of 6.0 to 10.08  cents per pound.  Saputo Cheese USA: 3,588,480 pounds of LMPS shredded Mozza-  rella, 30-pound boxes, at a price  differential of 2.85 to 16.91 cents per pound; 766,080 pounds of  lite shredded frozen Mozzarella, 30-pound box, at a price differential of 2.85 to 16.91 cents per Proudly made pound; and 5,765,760 pounds of in the low moisture part skim Mozzarella, United States 8/6-pound frozen loaves, at a price Celebrating 50+ Years differential of negative 8.11 cents to negative 4.36 cents per pound. For more information, visit www.vivolac.com Page 10 CHEESE REPORTER October 2, 2020

Chr. Hansen To for us, and I am excited to embark on this journey with EQT and all Wiskerchen Cheese Acquires Assets Divest Natural our talented employees around the world,” said Klaus Bjerrum, execu- Of All Star, Ltd. Colors Business, tive vice president of Natural Col- ors. Acquires Jennewein Earlier last week, Chr. Han- Biotechnologie sen entered into an agreement to Hoersholm, Denmark—Chr. acquire all of the shares of Jen- Hansen Holding A/S late last newein Biotechnologie GmbH, a week entered into an agreement leading player in the human milk to divest its Natural Colors busi- oligosaccharides (HMO) market. ness to the EQT IX Fund. HMOs are essential groups of The agreement concludes a stra- milk sugars which are naturally tegic review of Chr. Hansen’s port- occurring in human breast milk folio announced in July, wherein and which nurture the infant the company’s board of directors microbiome (including bacte- and executive board decided to ria with a probiotic effect), Chr. explore strategic options for the Hansen explained. Functional Natural Colors business as it doesn’t ingredients, especially HMOs and share the microbial and fermenta- probiotics, are driving the premi- tion technology platforms. umization trend in infant formula. Chr. Hansen’s Natural Colors HMOs are approved as an ingre- business is a leading developer dient for infant formula in North and manufacturer of natural color- America, Europe, parts of Latin ing ingredients for a wide variety America and Asia, with approv- of food sectors, including cheese, als pending in such key markets as China, India, Brazil and Argen- In the photo above are, left to right: John Wiskerchen, Wiskerchen Cheese; Bob Brandl, All yogurt, ice cream, UHT milk, con- Star LLC; and Bob Wolter, Creative Business Services. fectionery, and prepared food. tina, Chr. Hansen noted. “The divestment of Natural col- Jennewein is recognized as Auburndale and Fond du Lac, third-generation cheese manu- ors completes the review part of a leader in the HMO market, WI—Wiskerchen Cheese Inc., facturer, packaging and distribu- our recently launched 2025 strat- according to Chr. Hansen, with six Auburndale, WI, has acquired tion company. Over the last few egy. Chr. Hansen can now focus on commercialized HMOs, a strong the assets of All Star, Ltd., Fond decades, the Wiskerchen family fulfilling the ambition of becom- product pipeline, a global customer du Lac, effective Sept. 30, 2020. has focused on premium specialty ing a pure-play, microbial and fer- base and a strong IP portfolio of Moving forward, the new cheeses for US and export private mentation company with industry more than 200 patents granted in entity will conduct business as label programs. leading, profitable growth,” said key markets. Jennewein is head- All Star LLC. WCI products are split evenly Mauricio Graber, CEO of Chr. quartered in Bonn, Germany, with Bob Wolter with Creative between ingredient, food service Hansen. production partly outsourced to Business Services assisted in the and retail markets. By partnering “We are immensely proud and contract manufacturers. transaction. with premier customers, WCI humble of having been chosen as The addressable market for Bob Brandl, the founder and said its cheeses have the benefit the future owner of Natural Colors. HMOs is estimated to be more owner of All Star Ltd., began of vast distribution. It is a high-quality and truly global than 400 million euros by 2025, his dairy career in 1981 at Tol- After lengthy analysis, com- business with a proud legacy of ser- and more than 1 billion euros long- ibia Cheese in Fond du Lac. In bining the two entities made vicing customers all over the world term. Chr. Hansen plans to invest September 1986, Brandl and his synergistic sense for both succes- for more than 100 years,” said Mads more than 200 million euros in pro- father-in-law, Jim Spallas, started sion planning and future growth Ditlevsen, partner at EQT Partners duction assets until 2025, includ- the cheese brokerage business, opportunities. and investment advisor to EQT ing an investment in a brown-field Omega Marketing Specialist, All Star LLC is positioned to IX. “It is my conviction that this factory, to expand HMO capacity which offered cheese sourcing capitalize on the great experience marks a new and exciting chapter to supply the expected demand. programs for national customers. and capabilities of all partners, All Star Ltd. was formed in WCI noted. 1991 to offer control labels for Bob Brandl and John distribution nationwide. In Wiskerchen have teamed up to Superior Solutions recent years, All Star Ltd.’s focus facilitate the integration. All Star has centered on specialty cheese LLC looks forward to serving the sourcing for niche industrial/ cheese sourcing needs of existing FLOOR DRAINS ingredient and food service pro- and new customers for the long grams. The All Star label is seen term. nationwide in select dairy mar- For more information regard-  12 gauge single piece, kets. ing All Star LLC services, visit seamless construction on body Wiskerchen Cheese Inc. www.allstarcheese.com; or phone  T-304 or T-316 Stainless Construction (WCI), founded in 1936, is a (920) 921-0005.  Rated for heavy equipment - 10,000# Holdings’ Steel & O’Brien division  Standard size 4” sch.-10 outlet Flow Control in Arcade, NY. Founded in 1990, (2”, 3”, 6” also available) Holdings Acquires Steel & O’Brien is a manufacturer  Many styles of bodies, of sanitary stainless steel fittings, baskets & covers available Top Line Process valves, and parts for the dairy, food  Glass beaded finish Equipment processing, beverage, and pharma-  USDA Approved ceutical industries. Arcade, NY—Flow Control Hold- “This acquisition expands our Stainless ings, LLC, a provider of flow com- presence and product offering in ponents for applications in the the food, beverage and pharmaceu- Steel Floor food, beverage and pharmaceuti- E: [email protected] tical markets,” said Phil Pejovich, Drains,CIP TANKS, P-Trap cal industries, recently announced www.awimfg.com the acquisition of Top Line Process CEO of Flow Control Holdings, &BAL Clean-OutsANCE TANKS Tel: 888.272.2600 Equipment, a division of Allegh- LLC. andSTOR AAccessoriesGE TANKS Winsted, MN 55395 eny Bradford Corporation. For more information, visit call The Top Line operations will 585-492-5800 or visit www.steelo- For more information, visit www.awimfg.com be integrated with Flow Control brien.com/ October 2, 2020 CHEESE REPORTER Page 11

competition from alternatives, it is USDA To Implement New Australian Dairy Plan Aims To important to reinforce the reasons New US Dairy Drive Turnaround In Industry Outlook people choose to consume Austra- lian dairy to sustain and increase Sanitary Certificate Melbourne, Australia—The and all dairy regions. These have this strong support. Australian Dairy Plan launched been distilled into a set of five The partners commit to grow- For Exports To China Monday aims to drive a signifi- commitments to change: ing value and highlighting reasons Washington—The US Depart- cant turnaround in the industry’s Reform industry structures to consume dairy, ensuring ongo- ment of Agriculture (USDA) outlook via a range of initiatives to create a more cohesive dairy ing trust and acceptance of the recently announced the imple- targeting increased profitability, industry and strengthen its industry through a united, whole- mentation of a new US Dairy confidence and unity over the next influence with key stakehold- of-supply-chain commitment to Sanitary Certificate to China. five years and beyond. ers. Reform of industry structures support marketing and promotion Manufacturers that export The Dairy Plan is a joint ini- will deliver greater leadership of characterized by a combination of dairy products to China will be tiative of the Australian Dairy the industry, with wide-ranging new and proven activities. required to obtain the new sani- Products Federation (ADPF), and positive impacts, including a Intensify the focus on farm tary certificate, which USDA said Australian Dairy Farmers (ADF), stronger ability to advocate for the business skills to improve prof- will facilitate more efficient dairy Dairy Australia and Gardiner dairy industry; improved and more itability and better manage risk. trade between the US and China Dairy Foundation, with its devel- transparent priority-setting for The partners commit to providing and reduce the regulatory cost to opment led by independent chair, research, development, extension every dairy business with the sup- exporters. John Brumby, the former premier and industry services; and more port and tools they need to man- The new certificate, issued by of Victoria. efficient investment in initiatives age risk and volatility to improve USDA’s Agricultural Marketing The dairy industry makes a that advance the industry. profitability. Service (AMS), will become effec- major contribution to the Austra- Attract and support new peo- Restore trust and transparency tive Monday, Oct. 5, 2020. lian economy and its regions, the ple and investment to build the The current interim certificate, Dairy Plan noted. It is a major rural between farmers and processors industry. A steady pipeline of new implemented in July 2020, allowed industry, with a farmgate value to strengthen industry confi- people and investment is required for only one plant to be included of production of $4.6 billion in dence. The combination of long to increase the capacity of the per certificate. Current exporters 2018/19 converting to a total eco- planning cycles and high levels of dairy industry and improve its abil- that ship products to China that nomic contribution of $9.6 billion. competition mean that success in ity to supply domestic and global were produced at multiple plants In recent years, rising input milk production and processing markets. The partners are commit- were required to obtain multiple costs, combined with unprec- depends on continuity of supply. ting to a much stronger focus on certificates, resulting in increased edented volatility, have under- This, in turn, depends on invest- attracting and supporting people costs to the exporter, USDA noted. mined profitability in the industry. ment in long-term relationships and investment to build industry The new certificate will allow Since the early 2000s, the increase between farmers and processors capability. multiple manufacturing plants to in costs has been greater than the built on confidence and trust. Specific initiatives will: pro- be included on one certificate. increase in milk prices, placing An important step in rebuilding mote clear career pathways into Currently, 273 firms are significant pressure on farm profit trust and transparency is the devel- the dairy industry; create new ave- approved to export dairy products margins. opment of transparency and risk nues to dairy farm asset ownership; and infant formula to China. The two forms of volatility dairy management tools that help farm- and increase industry investment In recent years, the value of US farmers have had to negotiate in ers better understand the value of by targeting and engaging with the dairy exports to China have ranged recent years are market volatility- milk, manage market volatility, so different investor groups. from a high of $695.2 million in and climate volatility. The impact as to enhance productivity and Increase marketing and pro- 2014 to a low of $372.6 million of Australia’s increasingly variable profitability. in 2019. climatic conditions has contrib- motion efforts to build greater New initiatives will: establish For more information, visit uted to “dramatic fluctuations” in levels of trust and improve the a Milk Value Portal to provide www.ams.usda.gov/services/ the price and availability of water value of dairy. Australian dairy greater transparency on farmgate imports-exports/dairy-exports. for dairy farmers, according to the enjoys some of the strongest lev- milk price and the value of milk AMS, through its Dairy Grading Dairy Plan. els of support and consumption in by region and key supply metrics; Branch, offers export certification Extensive industry engagement the developed world and despite develop Margin Scenario Calcula- associated with the development tors to improve farmer understand- services to assist in the exportation the uncertainty surrounding the of the Dairy Plan produced a con- ing of the costs of production; and of dairy products. coronavirus pandemic, overall sistent set of key priorities from domestic dairy demand is holding lay the groundwork for additional Currently, the Dairy Grading across the industry supply chain up well. However, with growing milk trading options. Branch only provides export certificates for dairy products manufac- tured or processed at plants where it has knowledge from US con- THE IVARSON 640 BCS ducted plant and product inspec- The IVARSON 640 BLOCK CUTTING SYSTEM is a proven workhorse in the cheese conversion & tions or where AMS has surveyed/ packaging industry. Designed speciﬁcally for approved for grading services. The feeding todays highest output chunk and slice plant from which the product(s) lines, the 640 BCS is engineered with simplicity IVARSONINC.COM and sanitation in mind. IVARSON’s reputation for was last exposed to a chance of quality assures you that the equipment is contamination, must be on a fed- constructed with quality materials that stand up to the harshest environment, and the equipment eral inspected dairy plant list and is back by the best service and guarantee in in good standing prior to export- the business. ing out of the US into a foreign The IVARSON 640 BCS will deliver loaves and bars country. to your slice and chunk lines with consistent dimensions and NO TRIM! This means higher Dairy products eligible to obtain efﬁciency, better yield and increased throughput AMS Dairy Grading Branch for your downstream lines. export certificates must be manu- Process a 640 pound block in less than 4 factured or processed in eligible minutes, controlled for minimum giveaway plants on one of the following lists: Fully automated block reduction Capable of cutting slabs from 1.4 to 7 inches, Interstate Milk Shippers (IMS) accurate to 1/32” Quick changes cutting harps allow for multiple list, maintained by the US Food formats on the same production run and Drug Administration (FDA); Additional downstream cutting technology FDA maintained European Union available (EU) Dairy Plant Reference list; or “Dairy Plants Surveyed and Approved for USDA Grading WISCONSIN PROUD. QUESTIONS OR INQUIRIES... GIVE US A CALL! 414-351-0700 Service,” maintained by the Dairy Grading Branch. For more information, visit www.ivarsoninc.com PEOPLE

CPage 12 OMPANY NEWSCHEESE REPORTER October 2, 2020 We look at cheese differently.

www.cheesereporter.com/events.htm

SUPPLIER NEWS ...because we don’t just DBIA Webinar Series Starting Oct. 20 see cheese, we see the Looks At New Product Development whole picture. 1.866.404.4545 www.devilletechnologies.com

Madison—Online registration has tions, breakout sessions and inter- Cheese Reporter Ad.indd 1 2018-01-03 11:52 PM kicked off for a new free webinar views with farmers and processors before the event, according to series created to help dairy industry who will share their experiences organizers. The following seven PLANNING GUIDE farmers and processors boost busi- and lessons learned. webinars include: Oct. 4-5: Wisconsin Dairy Prod- ness using diversification and new The goal is to connect dairy  Oct. 27: Introduction to ucts Association Fall Celebra- product development. businesses to local or state-level Small Business Development Ser- tion, Landmark Resort, Door The series of eight webinars resources that can assist with each vices County, WI. For more informa- sponsored by the Dairy Business stage of their project.  Nov. 10: Marketing tion, visit www.wdpa.net Innovation Alliance (DBIA), a The first webinar on Oct. 20  Nov. 17: Prototype Develop- • partnership between the Center will introduce the DBIA and out- ment Oct. 14: New Date and Format for Dairy Research (CDR) and line how the program can help  Dec. 1: Regulatory Require- Wisconsin Cheese Makers Asso- participants actualize their ideas. ments – NCCIA Virtual Conference. Visit www.northcentralcheese. ciation (WCMA), starts Tuesday, Running from 1:30 p.m. to 3 p.m.,  Dec. 8: Food Safety & Qual- Oct. 20. instructors will outline how to ity org for more details. • The “Let’s Get Started” series access the webinars and related  Jan. 5, 2021: Economic will help identify local resources resources. Development Financing Oct. 25-28: Virtual Event - NMPF, UDIA, NDB Joint Annual and technical assistance to sup- Simply put, instructors will  Jan. 19, 2021: Exporting port dairy farmers and processors answer the following question – “I Dairy Products Conference. For updates, visit www.nmpf.org. who have decided to move forward know I need to diversify, but where To register, visit www.turbo. • on diversifying their enterprise or can I get help?” cdr.wisc.edu/dbia-oct-20-webinar- developing a new product. Subsequent webinars will focus registration. All webinars will be Oct. 26-28: New Format - IAFP The grant-funded program on business planning, marketing, recorded and placed on the DBIA 2020 Virtual Conference. Visit specifically targets dairy industry product development, regulatory website at no charge for partici- www.foodprotection.org for members in five states: Illinois, compliance, food safety and qual- pants. registration and more details. Iowa, Minnesota, South Dakota ity, financing and export opportu- For questions, contact Vic Grass- • and Wisconsin. nities. man, CDR technology commer- Jan. 17-19, 2021: Winter Fancy Webinars will be a combination Registration for each online cialization manager, at vgrassman@ Food Show, Moscone Center, of general information presenta- class will open roughly one month cdr.wisc.edu or (608) 512-6661. San Francisco, CA. More information available at www.spe- cialtyfood.com. In-Person NY Certified Milk Inspectors Stan Dietsche To Be • Honored At EWCBA Jan. 25-28, 2021: New Virtual School Is Nov. 16-19 In Binghamptom Format - Dairy Forum, Virtual Binghamptom, NY—Registra- year of experience in the dairy Meeting November 4 For information, visit www.idfa. tion is open for the Certified Milk industry and one month of super- Menasha, WI—The Eastern Wis- org. Inspectors School here Nov. 16-19 vised field experience in dairy farm consin Cheesemakers & Butter- • at the Broome County Cornell inspection. makers Association (EWCBA) Feb. 1-5- New Date: PLMA Cooperative Extension Ag Devel- The course must be completed has selected a new location for its Private Label Week Virtual opment Center. within one year of obtaining the annual convention this fall. Meeting. For more details and The course is hosted in part- inspectors certificate. For all CMIs, The meeting will take place registration information, visit nership with Cornell Dairy Foods an annual educational update is here Nov. 4 at Waverly Beach. The www.plma.com. Extension and the New York State also required. meeting begins at 3 p.m., featuring • Department of Agriculture & Mar- While designed for CMIs, the Mark Stephenson, director for the Feb. 17-19, 2021: World Cham- kets. It covers the basics of raw course is valuable to producers, lab Center for Dairy Profitability. pionship Cheese Contest, Wis- milk quality and safety, along with personnel and those involved in Stephenson will provide updates specific regulatory and inspection milk quality, sanitation and safety. on dairy markets and policy, global consin Center, Milwaukee, WI. requirements for dairy producers Instructors will cover milk com- trade, price outlook, and value- Visit www.worldchampion- under the Grade “A” milk program position and basic dairy bacteriol- added dairy products. cheese.org. outlined in the Pasteurized Milk ogy; raw milk pathogens and risk Wisconsin licensed cheese • Ordinance (PMO). of foodborne illness; farm milk sys- grader Stan Dietsche, longtime April 6-8: CheeseExpo, Mil- The course is required for all tems designed for cleaning; trou- leader at Oshkosh Cold Storage waukee Center, Milwaukee, WI. New York State Certified Milk bleshooting high bacteria counts and integral part of US and World Details available soon at www. Inspectors (CMI) who represent and drug use on farms. Championship Cheese Contests, cheeseexpo.org. state regulatory agents in inspect- Students will also learn about will be honored with a Lifetime • ing dairy farms under the require- milk sanitation regulations, quality Membership Award. April 25-27: ADPI/ABI Joint ments of the PMO. control record-keeping and direct A cocktail hour will begin at 5 Annual Conference, Hyatt In addition to this course, NY- load requirements. Farm tours at p.m., followed by a banquet and Regency Downtown, Chicago, CMI applicants must meet one the end of the workshop have yet distribution of door prizes. IL. For details, visit www.adpi. of the three criteria for education to be determined. The registration deadline is Oct. org. and/or work experience: an associ- The registration deadline is Nov. 17. Cost prior to the deadline is • ate degree or higher in an agricul- 3 and is limited to 15 students. $35 per person, and $40 after Oct. June 6-8: IDDBA 2021, George tural field and at least one month A flat registration fee of $225 17. Membership fees are $20 per R. Brown Convention Center, of supervised field experience in is required upon registration. For person. Registration materials can Houston, TX. For registration dairy farm inspection;minimum more details or to sign up, visit be sent to Barb Henning, N1841 and show information, visit of six months experience in dairy www.dairyextension.foodscience. Maple Heights Beach, Chilton, www.iddba.org. farm inspection; and at least one cornell.edu. WI, 53014. October 2, 2020 CHEESE REPORTER Page 13

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Classified Advertisements should be placed 7. Walls & Ceiling 10. Consultants by Thursday for the Friday issue. Classified ads charged at $0.75 per word. Display Classified EXTRUTECH PLASTICS NEW! Anti- SQF CONSULTANT + IMPLEMENTATION ASSISTANT: Do advertisements charged at per column inch microbial POLY BOARD-AM sanitary you wish to obtain SQF Certification rate. For more information, call 608-316-3792 panels provide non-porous, easily for your facility? Could you benefit from or email [email protected] cleanable, bright white surfaces, perfect the use of a local, industry experienced for incidental food contact applications. SQF Consultant? I have assisted many 1. Equipment for Sale 1. Equipment for Sale CFIA and USDA accepted, and Class small and mid-sized cheese manufac- A for smoke and flame. Call Extrutech turers, cold storage warehouses, and FOR SALE: Car load of 300-400-500 FOR SALE: 1500 and 1250 cream Plastics at 888-818-0118 or www.epi- ingredient brokers in Wisconsin and tanks. Like New. (800) 558-0112. (262) late model open top milk tanks. Like Illinois to achieve their SQF Certifica- plastics.com for more information. 473-3530. new. (262) 473-3530 tion, and I want to help you too. I can 8. Cheese & Dairy Products navigate the process, provide various ALFA-LAVAL SEPARATOR: Model 2. Equipment Wanted templates, training, and personalized MRPX 518 HGV hermetic separator. WANTED TO BUY: Westfalia or Alfa- KEYS MANUFACTURING: Dehydra- guidance to make the process easier. Can be set up for warm or cold. WEST- Laval separators. Large or small. Old or tors of scrap cheese for the animal feed I am based out of Madison, WI. Call FALIA SEPARATOR: Model MSA 200. new. Top dollar paid. Call Great Lakes industry. Contact us for your scrap at Brandis Wasvick at 651-271-0822 or Call Great Lakes Separators at (920) Separators at (920) 863-3306 or email (217) 465-4001 or email keysmfg@aol. Email: bluecompasscompliance@ 863-3306 or e-mail drlambert@dialez. [email protected] com. gmail.com or visit BlueCompass- net. Compliance.com for more informa- 3. Products, Services 9. Promotion & Placement tion, testimonials, and to see how you WESTFALIA SEPARATORS: New and I can get started today. BRANDIS FOR SALE: Unique Corrugated Cow PROMOTE YOURSELF - By contact- arrivals! Great condition. Model num- WASVICK, SQF AND FOOD SAFETY Print Gift Boxes for the Holidays ber 418. Call GREAT LAKES SEPA- ing Tom Sloan & Associates. Job COMPLIANCE CONSULTANT AND or year-round Regular Cow Print. RATORS at (920) 863-3306 or e-mail enhancement thru results oriented ASSISTANT Various sizes available from Dairyland [email protected]. professionals. We place cheese mak- Packaging. Please e-mail: djensen@ ers, production, technical, maintenance, SEPARATOR NEEDS - Before you buy dairylandpackaging.com or call (608) 16. Warehousing engineering and sales management a separator, give Great Lakes a call. 798-2247. Check out our website: www. people. Contact Dairy Specialist David COLD STORAGE SPACE AVAIL- TOP QUALITY, reconditioned machines dairylandpackaging.com. We are ABLE: Sugar River Cold Storage in Sloan, Tom Sloan or Terri Sherman. at the lowest prices. Call Dave Lam- your source for all packaging needs. Monticello, WI. has space available in TOM SLOAN & ASSOCIATES, INC., bert, GREAT LAKES SEPARATORS at it’s refrigerated buildings. Temp’s are 4. Conversion Services PO Box 50, Watertown, WI 53094. (920) 863-3306; [email protected] 36, 35 and 33 degrees. We are SQF Phone: (920) 261-8890 or FAX: (920) for more information. LANCASTER CHEESE SOLUTIONS: Certified and work with your schedule. A Cheese Conversion Company. 261-6357; or by email: tsloan@tsloan. Contact Eric at 608-938-1377 or visit Blocks or bars from 5 ounce to 10 com. our website sugarrivercoldstorage. pound. Located in southeast Pennsyl- com. Cut & Wrap vania. Call with your requests. (717) Production Capacity 351-0046 17. Contract Manufacturing Lancaster Cheese is your cut & for organic, kosher, or wrap headquarters. specialty cheese production Do you have dairy product making 5. Cheese Moulds, Hoops  7 standard conﬁgura�ons capacity or size reduction and conver- Award-winning WILSON HOOPS: NEW! 20 and 40 sion space available? Advertise here! available or bring us your cheese manufacturer custom specs. pound hoops available. Contact KUSEL has small batch by calling Cheese Reporter at 608-246-  Volume discounts EQUIPMENT CO. at (920) 261-4112 or production capacity 8430 or emailing info@cheesereporter. [email protected].  Short lead �mes available. com. Ads appear here and at www. cheesereporter.com  Located on the eastern shore 6. Real Estate We specialize in American-styles Contact Justin in 40-pound blocks. DAIRY PLANTS FOR SALE: 18. Testing Services Contact Phil: LANCASTER http://dairyassets.webs.com/acqui- Promote your microbiological, nutritional 1-920-564-3242 Cheese Solutions sitions-mergers-other. Contact Jim or food sample testing services here. sales@ 717-268-4544 at 608-835-7705; or by email at jim- Call 608-246-8430 for more informa- gibbsvillecheese.com or [email protected] [email protected] tion or email [email protected] Why Buy An “AS IS” Separator At Auction...When you can buy the same model already rebuilt and ready to ship? IN Model MSA 200 Westfalia Separator: Priced to Move at $139,500 Includes: New Controls  New Water Manifold  Water Saving System STOCK: Pit Free, Reset, Balanced and Test Ran “AS IS” Separators, as a rule, are not inspected, not rebuilt, have outdated controls, have not been reconditioned and priced wrong. GREATGREATGREAT LAKESLAKESLAKES Call the Separator Experts: Dave Lambert at (920) 863-3306 SEPARATORS,SEPARATORS,SEPARATORS, INC.INC.INC. or Dick Lambert at (920) 825-7468 MSA 200 Page 14 CHEESE REPORTER October 2, 2020

Class Milk & Component Prices DAIRY FUTURES PRICES September 2020 with comparisons to September 2019 SETTLING PRICE *Cash Settled

Class III - Cheese Milk Price 2019 2020 Date Month Class Class Dry Block III IV Whey NDM Cheese Cheese* Butter* PRICE (per hundredweight) $18.31 $16.43 9-25 Sept 20 16.35 12.71 31.925 100.100 1.941 1.7630 148.525 SKIM PRICE (per hundredweight) $9.91 $11.25 9-28 Sept 20 16.35 12.71 31.925 100.100 1.941 1.7640 148.875 9-29 Sept 20 16.35 12.72 31.925 100.100 1.941 1.7660 148.875 Class II - Soft Dairy Products 2019 2020 9-30 Sept 20 — — — — — — — PRICE (per hundredweight) $16.93 $13.16 10-1 Sept 20 — — — — — — —

BUTTERFAT PRICE (per pound) $2.5052 $1.6002 9-25 Oct 20 18.88 13.76 33.250 106.800 2.404 2.0150 158.000 SKIM MILK PRICE (per hundredweight) $8.46 $7.83 9-28 Oct 20 18.85 13.76 33.250 107.300 2.404 2.0120 158.000 9-29 Oct 20 19.27 13.85 33.800 105.750 2.404 2.0460 158.975 Class IV - Butter, MP 2019 2020 9-30 Oct 20 19.53 13.86 33.825 108.000 2.404 2.0790 158.750 PRICE (per hundredweight) $16.35 $12.75 10-1 Oct 20 20.01 13.82 34.025 106.800 2.416 2.1200 156.075 SKIM MILK PRICE (per hundredweight) $7.88 $7.43 9-25 Nov 20 18.53 14.35 34.500 112.700 2.103 1.9700 160.625 9-28 Nov 20 18.36 14.35 34.500 113.100 2.103 1.9610 159.850 BUTTERFAT PRICE (per pound) $2.4982 $1.5932 9-29 Nov 20 18.58 14.44 35.500 111.025 2.103 1.9680 161.500 NONFAT SOLIDS PRICE (per pound) $0.8753 $0.8253 9-30 Nov 20 18.63 14.53 35.500 113.000 2.123 1.9700 162.250 10-1 Nov 20 19.14 14.50 36.250 113.750 2.125 2.025 162.000 PROTEIN PRICE (per pound) $2.8633 $3.3935 OTHER SOLIDS PRICE (per pound) $0.1758 $0.1241 9-25 Dec 20 17.55 14.53 35.025 114.450 1.913 1.8600 162.025 9-28 Dec 20 17.42 14.53 35.025 114.700 1.913 1.5020 162.025 SOMATIC CELL Adjust. rate (per 1,000 scc) $0.00095 $0.00089 9-29 Dec 20 17.48 14.64 36.000 113.500 1.913 1.8480 164.000 9-30 Dec 20 17.53 14.75 37.000 114.950 1.913 1.8540 165.025 AMS Survey Product Price Averages 2019 2020 10-1 Dec 20 17.78 14.75 37.050 115.300 1.913 1.8800 164.975 Cheese $1.9053 $1.7741 9-25 Jan 21 16.82 14.84 35.500 115.875 1.834 1.7790 165.050 9-28 Jan 21 16.68 14.84 35.250 115.300 1.834 1.7720 165.050 Cheese, US 40-pound blocks $1.9843 $1.9496 9-29 Jan 21 16.71 14.94 36.000 115.050 1.834 1.7610 166.575 Cheese, US 500-pound barrels $1.7913 $1.5736 9-30 Jan 21 16.76 15.01 36.750 116.750 1.834 1.7620 168.500 Butter, CME $2.2344 $1.4871 10-1 Jan 21 16.90 15.01 36.750 116.750 1.834 1.7870 168.850 Nonfat Dry Milk $1.0519 $1.0014 9-25 Feb 21 16.52 15.05 35.525 117.000 1.799 1.7500 167.550 Dry Whey $0.3698 $0.3196 9-28 Feb 21 16.45 15.05 35.525 117.000 1.799 1.7400 167.550 9-29 Feb 21 16.40 15.25 36.500 115.775 1.799 1.7320 169.000 $25.00 9-30 Feb 21 16.43 15.25 37.300 118.000 1.799 1.7350 171.000 10-1 Feb 21 16.50 15.25 37.250 118.000 1.799 1.7430 170.525 $24.00 Class III Milk Price: $23.00 9-25 Mar 21 16.53 15.36 35.525 118.000 1.795 1.7450 174.750 2020 vs 2019 9-28 Mar 21 16.44 15.36 36.000 118.000 1.795 1.7400 173.875 $22.00 9-29 Mar 21 16.41 15.46 36.050 117.000 1.795 1.7380 175.800 $21.00 9-30 Mar 21 16.42 15.56 36.500 119.000 1.795 1.7350 178.000 10-1 Mar 21 16.50 15.56 36.500 118.250 1.795 1.7350 178.000 $20.00 $19.00 9-25 Apr 21 16.42 15.48 35.775 119.000 1.781 1.7470 178.000 9-28 Apr 21 16.40 15.48 35.775 119.000 1.781 1.7440 178.500 $18.00 9-29 Apr 21 16.40 15.53 36.250 117.750 1.781 1.7390 178.500 $17.00 9-30 Apr 21 16.40 15.55 36.250 119.750 1.781 1.7390 179.000 10-1 Apr 21 16.43 15.60 36.250 119.750 1.781 1.7400 179.000 $16.00 $15.00 9-25 May 21 16.42 15.70 35.900 120.000 1.781 1.7500 179.100 9-28 May 21 16.42 15.70 35.900 120.000 1.781 1.7400 180.000 $14.00 9-29 May 21 16.42 15.75 36.500 119.000 1.781 1.7380 180.025 $13.00 9-30 May 21 16.40 15.76 36.500 120.650 1.781 1.7380 181.525 10-1 May 21 16.43 15.76 36.500 120.650 1.781 1.7400 181.525 $12.00 J F M A M J J A S O N D 9-25 June 21 16.60 15.88 36.125 121.000 1.784 1.7590 183.000 9-28 June 21 16.53 15.88 36.125 121.000 1.784 1.7560 183.500 9-29 June 21 16.55 15.89 36.500 119.450 1.784 1.7510 183.500 DAIRY PRODUCT SALES $2.80 9-30 June 21 16.52 15.91 37.500 121.500 1.784 1.7500 183.625 $2.60 40-Pound 10-1 June 21 16.55 15.91 37.500 121.000 1.784 1.7500 183.625 September 30, 2020—AMS’ National $2.40 Block Avg Dairy Products Sales Report. Prices 9-25 July 21 16.80 16.10 36.125 121.750 1.789 1.7710 185.475 $2.20 included are provided each week by man- 9-28 July 21 16.80 16.10 36.125 122.000 1.789 1.7710 185.475 ufacturers. Prices collected are for the $2.00 9-29 July 21 16.80 16.10 36.500 121.000 1.789 1.7680 185.475 9-30 July 21 16.80 16.13 37.000 122.400 1.789 1.7680 185.475 (wholesale) point of sale for natural, unaged $1.80 10-1 July 21 16.81 16.13 37.000 122.300 1.789 1.7700 185.475 Cheddar; boxes of butter meeting USDA $1.60 standards; Extra Grade edible dry whey; $1.40 Interest - 17,715 4,746 2,590 6,375 289 20,726 7,525 and Extra Grade and USPH Grade A non- CME vs AMS Oct. 1 fortified NFDM. $1.20

$1.00 S O N D J F M A M J J A S Week Ending Sept 26 Sept. 19 Sept. 12 Sept. 5 CHEESE REPORTER SUBSCRIBER SERVICE CARD

40-Pound Block Cheddar Cheese Prices and Sales If changing subscription, please include your old and new address below Weighted Price Dollars/Pound Name ______US 2.1610 1.9641• 1.8242• 1.8069• Title ______Sales Volume Pounds US 12,661,141 11,746,482• 9,684,233• 11,858,849• Company ______500-Pound Barrel Cheddar Cheese Prices, Sales & Moisture Contest Address ______Weighted Price Dollars/Pound City/St/Zip ______US 1.7789 1.7170 1.5981 1.5591 Adjusted to 38% Moisture New Subscriber Info E-Mail Phone ______US 1.6858 1.6324 1.5186 1.4789 Sales Volume Pounds Name ______US 10,106,944 12,724,212 11,004,329 13,464,311 Title ______Weighted Moisture Content Percent US 34.58 34.79 34.76 34.64 Company ______AA Butter Address ______Weighted Price Dollars/Pound US 1.5136 1.4831• 1.4926 1.4729• City/St/Zip ______

Sales Volume Pounds Old Subscriber Info E-Mail Phone ______US 3,114,073 3,043,353• 2,903,385 6,110,397• Extra Grade Dry Whey Prices TYPE OF BUSINESS: JOB FUNCTION: ___Cheese Manufacturer ___Company Management Weighted Price Dollars/Pounds ___Cheese Processor ___Plant Management US 0.3242 0.3258 0.3194 0.3102• ___Cheese Packager ___Plant Personnel Sales Volume US 6,877,858 6,116,135 4,242,491 7,439,320• ___Cheese Marketer(broker, distributor, retailer ___Laboratory (QC, R&D, Tech) ___Other processor (butter, cultured products) ___Packaging Extra Grade or USPHS Grade A Nonfat Dry Milk ___Whey processor ___Purchasing Average Price Dollars/Pound ___Food processing/Foodservice ___Warehouse/Distribution US 1.0227 1.0093• 0.9993• 0.9725• ___Supplier to dairy processor ___Sales/Marketing Sales Volume Pounds US 22,843,430 18,749,679• 16,993,801• 20,796,739 Circle, copy and FAX to (608) 246-8431 for prompt response

October 2, 2020 CHEESE REPORTER Page 15

DAIRY PRODUCT MARKETS NATIONAL - CONVENTIONAL DAIRY PRODUCTS AS REPORTED BY THE US DEPARTMENT OF AGRICULTURE Conventional retail ads, on the whole, increased by 21 percent from last week. Organic ads decreased by 43 percent. Conventional shred cheese in 8-ounce packages was the most advertised item. Milk in gallon containers was the most advertised organic item this week. WHOLESALE CHEESE MARKETS Conventional cheese ads grew 15 percent week to week, and there were no organic cheese ads. Cheese in 8-ounce blocks held a weighted average price of $2.41, two cents below last NATIONAL - SEPT. 25: The spread between blocks and barrels continues to perplex week’s price. market bulls. Historical patterns indicate the two market prices will converge, so the elephant in the room is whether block prices retreat, barrel prices strengthen, or a meeting in the Yogurt advertisements, on the conventional aisle, increased by six percent, while organic middle. Cheese production remains mostly busy throughout the country, as milk supplies are yogurt ads grew 1 percentage point. Conventional Greek yogurt in 4- to 6-ounce containers generally plentiful. Demand is mixed, but foodservice orders have ticked up week to week. was the most advertised yogurt item this week, with an average price of $.92. Mozzarella and other pizza-style cheese producers are saying orders have been increasing, as pizza orders have remained strong despite COVID-19 related restrictions. Conventional milk ad numbers jumped by 234 percent week to week, while organic bottled milk ads decreased 29 percent. The average price for conventional half-gallon milk containers NORTHEAST - SEPT. 30: Cheese makers are clearing stable milk volumes to cheese is $2.65, compared to $4.01 for organic half gallons - an organic premium of $1.36. vats. Manufacturers’ inventory levels are adequate for spot/contract orders. Cheese markets are showing signs of firmness. Industry contacts note government food programs are purchasing additional cheese orders and other dairy product items. Cheese sales into educa- RETAIL PRICES - CONVENTIONAL DAIRY - OCTOBER 2 tional institutions vary from school to school, and foodservice sales are mixed. Restaurants continue to struggle with indoor dining limitations. Mozzarella and Provolone cheese sales Commodity US NE SE MID SC SW NW into pizzerias are steady, as numerous eateries are altering dine in options with takeout/deliv- 3.00 3.12 2.68 2.87 3.76 2.82 3.00 ery. There are some reports cheese sales are higher compared to last year, with consumers Butter 1# demanding more dairy products for at home cooking. Cheese 8 oz block 2.41 2.29 2.43 2.06 3.29 2.59 2.56 Cheese 1# block 4.09 3.67 4.75 2.99 4.99 3.54 3.37 Wholesale prices, delivered, dollars per/lb: Cheese 2# block Cheddar 40-lb blocks: $3.0250 - $3.3125 Process 5-lb sliced: $1.7400 - $2.2200 6.77 5.99 NA NA 6.84 6.77 6.39 Muenster: $3.0125 - $3.3625 Swiss Cuts 10-14 lbs: $3.8075 - $4.1300 Cheese 8 oz shred 2.33 2.30 2.43 1.99 2.26 2.28 2.65 Cheese 1# shred 4.24 3.79 4.28 NA 3.50 4.49 NA MIDWEST AREA - SEPT. 30: Cheese sales reports are mixed, but generally healthy. Cottage Cheese 1.87 2.36 1.98 .99 1.89 1.49 2.00 Mozzarella and Provolone demand is strong. Some cheese makers say higher market prices are creating buying hesitancy. That said, when inventories get low, buyers are ordering heav- Cream Cheese 1.98 1.83 1.98 .99 1.96 1.99 2.18 ily. Barrel producers continue to suggest inventories are available, but not overly concern- Flavored Milk ½ gallon 1.99 NA NA NA NA NA NA ing. Contractual milk supplies are fulfilling the needs of most cheese plant managers. Some Flavored Milk gallon 1.99 NA NA NA NA NA 1.99 plants that have undergone maintenance are back up and running, so production is a little more even among midwestern plants. Spot milk markets have been and are remaining quiet, Ice Cream 48-64 oz 3.17 2.97 3.17 3.05 3.55 3.24 2.69 but early spot prices are falling closer to Class. Cheese market tones are mostly bullish. Milk ½ gallon 2.65 NA NA NA NA 1.99 3.99 Milk gallon 3.33 3.49 NA 2.39 5.49 NA 1.99 Wholesale prices delivered, dollars per/lb: Brick 5# Loaf: $2.9400 - $3.3650 Cheddar 40# Block: $2.6625 - $3.0625 Sour Cream 16 oz 1.81 1.89 2.15 1.11 1.97 1.43 1.94 Monterey Jack 10#: $2.9150 - $3.1200 Mozzarella 5-6#: $2.7400 - $3.6850 Yogurt (Greek) 4-6 oz .92 .90 .99 .85 .93 1.00 .95 Muenster 5# $2.9400 - $3.3650 Process 5# Loaf: $1.7250 - $2.0850 Yogurt (Greek) 32 oz 4.24 4.60 4.08 4.39 NA 4.47 3.99 Grade A Swiss 6-9#: $3.3225 - $3.4400 Blue 5# Loaf: $3.2075 - $4.2775 Yogurt 4-6 oz .46 .49 .50 .50 .46 .45 .39 WEST - SEPT. 30: The cheese market is struggling to maintain a good balance. Despite Yogurt 32 oz 3.47 2.50 5.00 2.39 NA NA NA reports of good overall sales, the market is still facing uncertainties related to the pandemic US: National Northeast (NE): CT, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VT; and its impact on customers/sellers’ behaviors. Block cheese inventories are tighter than those of barrel cheese. This has translated into higher block cheese prices compared to Southeast (SE): AL, FL, GA, MD, NC, SC, TN, VA, WV; Midwest (MID): IA, IL, IN, barrels. According to industry contacts, the increase in government purchases is impacting KY, MI, MN, ND, NE, OH, SD, WI; South Central (SC): AK, CO, KS, LA, MO, NM, cheese prices and availabilities. At the moment, US cheese prices are not as competitive in OK, TX; Southwest (SW): AZ, CA, NV, UT; Northwest (NW): ID, MT, OR, WA, WY the international market as they were a few weeks ago. Cheese production is active in the West. Most processing plants are running at full capacity. Inventories vary depending on the type of cheese and the processor, but they are mostly unchanged from the previous week. ORGANIC DAIRY - RETAIL OVERVIEW National Weighted Retail Avg Price: Yogurt 4-6 oz: $1.07 Wholesale prices delivered, dollars per/lb: Cheddar 10# Cuts: $2.9000 - $3.1000 Butter 1 lb: $4.99 Greek Yogurt 32 oz: $4.63 Cheddar 40# Block: $2.6525 - $3.1425 Monterey Jack 10#: $2.8875 - $3.1625 Cheese 8 oz shred: NA Milk ½ gallon: $4.01 Process 5# Loaf: $1.7425 - $1.9975 Swiss 6-9# Cuts: $3.6150 - $4.0450 Cheese 8 oz block: NA Milk gallon: $4.83 Cream Cheese 8 oz: NA Flavored Milk ½ gallon: NA FOREIGN -TYPE CHEESE - SEPT. 30: Cheese deliveries to Southern Europe Cottage Cheese 16 oz: $3.99 Milk UHT 8 oz: NA are steady; however, sale volumes vary from one southern European country to another. Yogurt 32 oz: $3.68 Ice Cream 48-64 oz: NA Because of concerns about the exchange rate between the US dollar and the euro, contract negotiations between Germany and non-European countries for the first quarter of 2021 NDM PRODUCTS - OCTOBER 1 cheese coverages are more difficult. NDM - CENTRAL: Low/medium heat demand for protein components within the Selling prices, delivered, dollars per/lb: Imported Domestic NDM prices shifted bullishly, to put it regional and national dairy industry. NDM Blue: $2.6400 - 5.2300 $3.0850 - 4.5725 lightly. Increased demand and tighter dry- requests from the bakery and confection- Gorgonzola: $3.6900 - 5.7400 $3.5925 - 4.3100 ing schedules, while plants are pushing ery sectors are improving ahead of the Parmesan (Italy): 0 $4.4725 - 6.5625 more buttermilk and whole milk through, holidays. Strong NDM demand from Mex- Romano (Cows Milk): 0 $4.2750 - 6.4300 has limited recent production, even as ico is also contributing to higher prices. Sardo Romano (Argentine): $2.8500 - 4.7800 0 condensed skim is attainable. Domestic NDM - EAST: Low/medium heat NDM Reggianito (Argentine): $3.2900 - 4.7800 0 demand has picked up, as export buying has regional end users getting involved prices are higher. NDM markets have Jarlsberg (Brand): $2.9500 - 6.4500 0 before prices push even higher. Cheese firmed in the East, and manufacturers Swiss Cuts Switzerland: 0 $3.8450 - 4.1675 makers are also buying some extra NDM are offering spots at stronger price points. Swiss Cuts Finnish: $2.6700- 2.9300 0 on the spot market to fortify. Several market participants are purchasing on the spot market. On various market NDM - WEST: Throughout the week, exchanges, prices continue to increase. WHOLESALE BUTTER MARKETS - SEPTEMBER 30 spot prices for western low/medium heat There are reports export demand is healthy WEST: Retail butter demand is showing term. Retail customers, in some cases, have NDM shifted noticeably higher on a firmer and supporting competitive prices on the signs of a seasonal bump. Buyers are ask- been given notice that butter quarters may market. In the same fashion, in the future domestic market. Some NDM manufacturing manufacturers about available supplies. be short in the final quarter of the year. Butter markets, NDM values for Q4 and Q1 are ers are limited on spot supplies, as some Grocers have let processors know they plan contacts suggest current retail loss leader on a bullish trend - seen as an optimis- operations are sold-out of inventories. to run some in-store specials soon and want promotions may be short lived. Although bulk tic sign for some manufacturers amongst to make sure of coverage. The steady pull on butter is clearly available, production capacity uncertainty caused by COVID-19. There LACTOSE: Lactose prices are steady print supplies through the summer has some is limited for grocery retail orders. Butter mar- are some factors driving NDM prices up. to lower. Many of the Q4 lactose contracts shoppers wondering if warehouse stocks are ket tones are feeling the bearish effect of cold For example, NDM manufacturers are pri- are in place and at levels within the current ready for the fall and winter holiday baking storage increases, but contacts’ Q4 expecta- oritizing the completion of Q4 contractual mostly price series. The Industry contacts season. Bulk inventories are heavy, but print tions are mixed from sideways to bullish. agreements over selling in the spot mar- report a few discounted spot sales that stocks are a bit thin for this time of year. ket. In this way, the supply of NDM has appear and disappear quickly. Manufactur- Manufacturers say their foodservice sales NORTHEAST: Print butter clearing to been perceived to be below the immediate ers suggest they occasionally have a few are weak. There is a wide range of school retail continues to fuel butter production for buyer’s needs in the spot market. Another loads intended for a specific end user but activity, making foodservice needs hard some manufacturers, as the industry thrusts factor driving NDM prices up is the hearty miss on the end user’s specifications. to read. Restaurants are recognizing that into buying season. Although cream pricing as the weather changes, having to move is higher, at times, than butter producers indoors may put an end to some businesses. desire, they must meet their butter obliga- tions during the final quarter. Some retail WEEKLY COLD STORAGE HOLDINGS CENTRAL: Butter production continues feature activity is scheduled, which will SELECTED STORAGE CENTERS IN 1,000 POUNDS - INCLUDING GOVERNMENT steadily at midwestern plants. Cream supplies potentially clear heavier volumes. That said, DATE ...... BUTTER CHEESE have begun to tighten in the East, but regional anecdotal comments circulating the market butter makers are still finding spots at similar suggest there could be a shortage of print 09/28/20 ...... 68,710 77,208 multiples, locally and from the West. There as the year comes to an end. Foodservice 09/01/20 ...... 76,114 81,072 are some expectations from butter plant man- demand is very high right now, as the USDA Change ...... -7,404 -3,864 agers that cream could tighten in the near box program pulls from the butter supply. Percent Change...... -10 -5 Page 16 CHEESE REPORTER October 2, 2020

of operators reported a same-store CME CASH PRICES - SEPT. 28 - OCT. 2, 2020 Restaurant sales increase between August Visit www.cheesereporter.com for daily prices Performance Index 2019 and August 2020, down from 500-LB 40-LB AA GRADE A DRY 27 percent who reported similarly CHEDDAR CHEDDAR BUTTER NFDM WHEY Rose 0.5% In Aug.; in July. And 70 percent of opera- MONDAY $1.6750 $2.5625 $1.5025 $1.1100 $0.3850 September 28 (+1½) (+¾) (NC) (+1) (+¾) tors reported lower same-store sales Operators Somewhat in August, up from 66 percent in TUESDAY $1.7300 $2.5650 $1.5100 $1.1300 $0.3850 September 29 (+5½) (+¼) (+¾) (+2) (NC) More Optimistic July. Sales results continued to vary WEDNESDAY $1.8000 $2.5725 $1.5100 $1.1400 $0.3850 Washington—The National across segments in August. September 30 (+7) (+¾) (NC) (+1) (NC) Restaurant Association’s Restau- Restaurant operators continued THURSDAY $1.9000 $2.5775 $1.5100 $1.1350 $0.3900 rant Performance Index (RPI), to report sharply lower customer October 1 (+10) (+½) (NC) (-½) (+½) a monthly composite index that traffic levels in August. FRIDAY $1.9550 $2.6100 $1.5100 $1.1225 $0.3900 The Expectations Index, which October 2 (+5½) (+3¼) (NC) (-1¼) (NC) tracks the health of and outlook for the US restaurant industry, measures restaurant operators’ Week’s AVG $1.8120 $2.5775 $1.5085 $1.1275 $0.3870 six-month outlook for four indus- Change (+0.1735) (+0.0010) (-0.0430) (+0.0440) (+0.0110) stood at 97.6 in August, up 0.5 percent from July, the association try indicators (same-store sales, Last Week’s $1.6385 $2.5765 $1.5515 $1.0835 $0.3760 employees, capital expenditures AVG reported Wednesday. The RPI is constructed so that and business conditions), stood 2019 AVG $1.6220 $1.9675 $2.1470 $1.1035 $0.3495 at 99.4 in August, up 1.4 percent Same Week the health of the restaurant industry is measured in relation to a from July. neutral level of 100. Index val- Restaurant operators’ outlook MARKET OPINION - CHEESE REPORTER ues above 100 indicate that key for business conditions improved Cheese Comment: Two cars of blocks were sold Monday, the last at $2.5625, industry indicators are in a period somewhat from recent months. which set the price. On Tuesday, 2 cars of blocks were sold at $2.5650, which raised of expansion, while index values Some 30 percent of operators the price. Two cars of blocks were sold Wednesday at $2.5725, which raised the below 100 represent a period of expect their sales volume in six price. One car of blocks was sold Thursday at $2.5775, which raised the price. On contraction for key industry indi- months to be higher than it was Friday, 2 cars of blocks were sold, the last at $2.6100, which raised the price. The during the same period in the pre- barrel price rose Monday on an unfilled bid at $1.6750, increased Tuesday on an cators. unfilled bid at $1.7300, jumped Wednesday on an unfilled bid at $1.8000, jumped The RPI consists of two com- vious year. This was up from 20 Thursday on a sale at $1.9000, and rose Friday on an unfilled bid at $1.9550. ponents: the Current Situation percent in July and the highest Index and the Expectations Index. level recorded during the pan- Butter Comment: The price rose Tuesday on a sale at $1.5100, and remained at The Current Situation Index, demic. And 44 percent of operators that price for the rest of the week. which measures current trends in expect their sales in six months to be lower than they were during the Nonfat Dry Milk Comment: The price increased Monday on a sale at $1.1100, rose four industry indicators (same- Tuesday on a sale at $1.1300, increased Wednesday on a sale at $1.1400, declined store sales, traffic, labor and capi- same period in the previous year, Thursday on a sale at $1.1350, and fell Friday on a sale at $1.1225. tal expenditures), stood at 95.7 down from 53 percent of operators in August, down 0.5 percent from who reported similarly in July. Dry Whey Comment: The price rose Monday on an unfilled bid at 38.50 cents, and July. Restaurant operators’ outlook increased Thursday on an unfilled bid at 39.0 cents. Restaurant operators reported for the overall economy is also somewhat softer same-store sales somewhat more optimistic com- WHEY MARKETS - SEPT. 28 - OCT. 2, 2020 results in August. Some 21 percent pared to recent months. RELEASE DATE - OCT. 1, 2020

Animal Feed Whey—Central: Milk Replacer: .2700 (NC) – .3000 (NC) Buttermilk Powder: ® Central & East: .9100 (NC) – 1.0300 (+½) West: .9000 (+5) – 1.0300 (+1) Mostly: .9300 (+3) – .9800 (NC) The Global Leader in Food Cutting Technology Casein: Rennet: 3.4700 (NC) – 3.5525 (NC) Acid: 3.6000 (NC) – 3.8000 (NC)

Dry Whey—Central (Edible): Nonhygroscopic: .2800 (NC) – .3700 (+1½) Mostly: .3150 (+1½) – .3500 (+1) Dry Whey–West (Edible): Nonhygroscopic: .3175 (+2½) – .3850 (+½) Mostly: .3300 (+1) – .3600 (NC) Dry Whey—NorthEast: .3000 (NC) – .3575 (+½)

Lactose—Central and West: Edible: .3900 (NC) – .6300 (-1) Mostly: .4550 (-½) – .5500(NC) Nonfat Dry Milk —Central & East: Ready for 2x Low/Medium Heat: 1.0600 (+4) – 1.1600 (+6) Mostly: 1.0800 (+5) – 1.1200 (+6) High Heat: 1.1200 (-1) – 1.2400 (+4) the throughput? Nonfat Dry Milk —Western: Low/Medium Heat: 1.0200 (+2¼) – 1.1675 (+4) Mostly: 1.0800 (+5) – 1.1400 (+6) ® High Heat: 1.1000 (NC) – 1.2975 (+4) Meet the new 14-station MicroAdjustable (SH-14) Head: Offers nearly two times the capacity. Whey Protein Concentrate—Central and West: Edible 34% Protein: .7100 (NC) – 1.0250 (NC) Mostly: .8050 (+5½) – .9250 (-2) The new U.S.D.A., Dairy Division accepted MicroAdjustable SH-14 Shred Head features 14 cutting stations, in place of the Whole Milk—National: 1.5800 (-7) – 1.7500 (NC) standard 8, for nearly double the throughput. New Visit www.cheesereporter.com for historical technology offers 5 preset cut sizes to produce full dairy, cheese, butter, and whey prices and reduced shreds — no gauge required. Fits on standard self-locking support rings. HISTORICAL CME AVG BLOCK CHEESE PRICES Visit www.urschel.com to learn more. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ‘09 1.0883 1.2171 1.2455 1.2045 1.1394 1.1353 1.1516 1.3471 1.3294 1.4709 1.5788 1.6503 10 1.4536 1.4526 1.2976 1.4182 1.4420 1.3961 1.5549 1.6367 1.7374 1.7246 1.4619 1.3807 ‘11 1.5140 1.9064 1.8125 1.6036 1.6858 2.0995 2.1150 1.9725 1.7561 1.7231 1.8716 1.6170 ‘12 1.5546 1.4793 1.5193 1.5039 1.5234 1.6313 1.6855 1.8262 1.9245 2.0757 1.9073 1.6619 THE GLOBAL LEADER IN FOOD CUTTING TECHNOLOGY ‘13 1.6965 1.6420 1.6240 1.8225 1.8052 1.7140 1.7074 1.7492 1.7956 1.8236 1.8478 1.9431 ‘14 2.2227 2.1945 2.3554 2.2439 2.0155 2.0237 1.9870 2.1820 2.3499 2.1932 1.9513 1.5938 Set-up a free test cut of your product: Toll Free: +1.844.URSCHEL (877.2435) # Best Selling ‘15 1.5218 1.5382 $1.5549 1.5890 1.6308 1.7052 1.6659 1.7111 1.6605 1.6674 1.6175 1.4616 provider of industrial cutting [email protected] | www.urschel.com machinery throughout the world. ‘16 1.4757 1.4744 1.4877 1.4194 1.3174 1.5005 1.6613 1.7826 1.6224 1.6035 1.8775 1.7335 1 ‘17 1.6866 1.6199 1.4342 1.4970 1.6264 1.6022 1.6586 1.6852 1.6370 1.7305 1.6590 1.4900 ® MicroAdjustable, Urschel, Urschel logo symbol, and The Global Leader in Food MADE IN ‘18 1.4928 1.5157 1.5614 1.6062 1.6397 1.5617 1.5364 1.6341 1.6438 1.5874 1.3951 1.3764 Cutting Technology are registered trademarks of Urschel Laboratories, Inc. U.S.A. THE U.S.A. ‘19 1.4087 1.5589 1.5908 1.6619 1.6799 1.7906 1.8180 1.8791 2.0395 2.0703 1.9664 1.8764 ‘20 1.9142 1.8343 1.7550 1.1019 1.6704 2.5620 2.6466 1.7730 2.3277 For more information, visit www.urschel.com

2056SH14CheeseShredding_WorldUSA_qtrpgCheeseRptr.indd 1 9/11/20 2:08 PM