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e l y S PRECISE, RAPID SHREDS with Urschel CHEESE REPORTER urschel.com  Vol. 144, No. 4 • Friday, July 12, 2019 • Madison, Wisconsin Global Milk Output Expected To California Dairies, Inc., DFA Create Rise 1.7% A Year Over Next Decade Marketing Agency Only Butter Production percent) is due to herds growing America as the share of grass-based In Common For Raw faster in countries with relatively production is low and feeding is Milk In California Is Projected To Grow low yields, the report explained. focused on high yields, the report At Faster Rate Than India and Pakistan are especially said. Cow herds in the US and Visalia, CA—California Dairies, Milk Production important for milk production, and Canada are expected to remain Inc. (CDI), and Dairy Farmers of America (DFA) on Wednesday are expected to contribute to more largely unchanged and production Rome, Italy—World milk pro- announced the creation of a mar- than half of the growth in world growth to originate from further duction is expected to grow at keting agency in common to ben- milk production over the next increases of what are already high 1.7 percent per annum over the efit and bring efficiency to both decade. They are also expected to yields. next decade, faster than most cooperatives’ customers and mem- account for more than 30 percent New Zealand is the most export- other main agricultural commodi- bers. of world milk production in 2028. oriented milk producer and has ties, according to the OECD-FAO With the establishment of this Milk production in the Euro- seen substantial recent milk pro- Agriculture Outlook, which was marketing agency in common, pean Union (EU) is projected to duction growth, the report noted. released Monday in Rome. CDI and DFA will combine the grow more slowly than the world The main constraining factors for The report presents a baseline raw milk marketing and transpor- average over the next decade. The New Zealand’s continued growth scenario for the evolution of agri- tation efforts for both coopera- cultural commodity markets at EU’s medium-term growth is due are land availability and increasing environmental restrictions. A tives in California. The marketing national, regional and global levels to a small increase in domestic agency in common will also enable over the coming decade. Projec- demand as well as an increase in change to a more feed-based production, as opposed to grass-based, both co-ops to create market stabil- tions in the report are developed global demand for dairy products. ity, milk balancing and enhanced by OECD and FAO in collabora- Growth in EU milk produc- is nevertheless not expected. It is anticipated that less than 30 customer service as part of short- tion with experts from member tion will stem from an increase in and long-term strategies, CDI and countries and international com- milk yields, which are projected percent of global milk production will be further processed into prod- DFA said. modity bodies. to grow at 1.1 percent per annum CDI is the largest member- In almost all regions of the over the next decade. Dairy herds ucts such as cheese, butter, skim milk powder, whole milk powder, owned milk marketing and pro- world, yield growth is expected to are expected to go on a declining cessing cooperative in California, contribute more to milk produc- trend again (down 0.5 percent per or whey powder. Most milk is consumed in the form of fresh dairy producing 40 percent of the state’s tion increases than herd growth, annum) following an increase in milk. Co-owned by almost 400 the report said. the early years of the projection products. Cheese and butter have considerable direct food demand, dairy producers who ship 16 bil- The contradicting world aver- period in response to the abolition lion pounds of milk annually, CDI age observation of a larger growth of milk quotas. especially cheese, and they currently account for a large share of manufacturers butter, milk pow- of herds (1.2 percent per annum) The highest average yield per ders and fluid milk products. than average yield growth (0.4 cow is expected to occur in North • See Global Output, p. 10 DFA is the largest dairy co-op in the US and the fourth-largest dairy company in the world in terms of USDA Hikes Cheese Perfect Day Launches Ice Cream Made annual dairy turnover, according to Rabobank. Last year, DFA Price Forecasts For With Its Animal-Free Whey Protein directed the marketing of 64.5 Both 2019, 2020 Emeryville, CA—Perfect Day on scaling a method for producing billion pounds of milk for both Thursday announced the launch functional, nutritious protein Washington—The US Depart- members and others through the of its limited edition ice cream, using fermentation of microflora. ment of Agriculture (USDA), in which is made with the compa- The company says its flora-based • See CDI And DFA, p. 20 its monthly supply-demand esti- ny’s flora-based, animal-free dairy dairy protein is nutritionally iden- mates released Thursday, raised protein. tical to the protein found in cow’s its cheese price forecasts for both Dry Dairy Output: Perfect Day was offering a bun- milk, but made without cows. Percent Change of Select Products 2019 and 2020, while its other dle containing three flavors of the On its website (www.per- May 2019 vs. May 2018 product price forecasts were mixed. frozen dairy dessert: Milky Choc- fectdayfoods.com), Perfect Day The agency’s milk production 15 olate, Vanilla Salted Fudge and explains how it turns flora into forecast for 2019 is unchanged Vanilla Blackberry Toffee. Each milk. First, it takes milk’s essential from last month, at 218.2 billion of the three products includes genes and adds them to micro- 10 pounds, up 600 million pounds non-animal whey protein in its flora, which it describes as a tiny from 2018’s record output. The list of ingredients. The front of organism that comes from nature 5 milk production forecast for 2020 the pints includes the phrase “fro- and can produce large amounts of is reduced by 100 million pounds, zen dairy dessert,” as opposed to pure protein. to 221.8 billion pounds, on slower 0 “ice cream.” Next, the dairy flora can use expected growth in milk per cow. The company was selling a fermentation to convert plant For 2019 and 2020, the fat basis three-pint bundle for $60.00, or sugar into milk proteins — whey -5 import forecasts are raised from $20.00 per pint. By late Thursday, and casein — that the company last month on higher expected the company said it had sold out said are nutritionally idential to WPC 50-89% imports of butterfat products. Fat -10 NFDM hey W Dry Lactose WPC 25-50% WPI MPC Buttermilk Whole Milk its first Perfect Day product. those that come from cows. basis exports for 2019 are reduced For the last five years, Perfect • See Cheese Prices, p. 28 Day has been developing and • See Animal-Free Whey, p. 11 Page 2 CHEESE REPORTER July 12, 2019

Past Issues Read this week’s issue EDITORIAL COMMENT or past issues of Cheese Reporter on your mobile phone or it would appear that dairy pro- tablet by scanning this QR code. ducers are more than capable of DICK GROVES Cheese Reporter Publishing Co. Inc. ©2019 boosting the milkfat output of their cows, and have not yet reached 2810 Crossroads Drive, Suite 3000 Publisher / Editor “peak milkfat” as far as milkfat Madison, WI 53718-7972 percentage is concerned. (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 Producing More Fat Makes Sense, And Cents, For Farmers MOIRA CROWLEY Over the past couple of decades, has been the most valuable com- 23,000 pounds in the US), but per- Specialty Cheese Editor e-mail: [email protected] the price of butterfat, as far as a ponent since then. haps economically EU producers 608-316-3793 dairy producer’s milk check is con- With butter prices projected to are better off producing less milk KEVIN THOME cerned, has had its ups and downs, remain above $2.00 per pound for overall but more butterfat (on a Advertising & Marketing Director to put it mildly. But lately, trying to the foreseeable future (through percentage basis). e-mail: [email protected] push butterfat production higher, at least next year, according to Fourth, dairy farmers get more 608-316-3792 and promoting butter sales, makes USDA’s forecasts), it seems safe to “bang for the buck” from butter BETTY MERKES Classifieds/Circulation Manager a lot of sense, and cents, for dairy conclude that butterfat will remain sales than from the sale of any e-mail: [email protected] producers. the most valuable component in other major dairy product. That is, 608-316-3790 We make that point for several milk for some time. USDA’s Economic Research Ser- REGULAR CONTRIBUTORS: reasons. First, USDA’s most recent Third, it would appear that vice calculates price spreads from Jen Pino-Gallagher, Bob Cropp, Neville report to Congress on the dairy dairy producers are more than farm to consumer, and the farm McNaughton, Dan Strongin, John Umhoefer capable of boosting the milkfat value share for butter has topped You can e-mail our contributors at: promotion program (which was [email protected] released earlier this year but unfor- output of their cows, and have not 60 percent twice over the last five tunately covers 2016 program yet reached “peak milkfat” as far as years. The only other dairy prod- The Cheese Reporter is the official activities) found that the producer milkfat percentage is concerned. uct that comes close is whole milk, publication of the following associations: profit benefit-cost ratio (BCR) for There are a couple of ways of which has topped 50 percent over California Cheese & Butter Association butter, at 22.74, is far higher than looking at this. First, going back the last two years. By contrast, the Lisa Waters, farm share for Cheddar cheese was 1011 Pebble Beach Dr, Clayton, CA 94517 for fluid milk (4.11), cheese (4.81), almost three decades, over the and dairy exports (8.10). 1990-2010 period the average 28 percent in 2018. Central Wisconsin Cheesemakers’ and Buttermakers’ Association As calculated for USDA’s milkfat content of US producer Fifth, the US has in recent Jim Mildbrand report, the producer profit BCR milk fell into a narrow range of years become a net exporter of [email protected] is the additional industry profits 3.65 to 3.69 percent. dairy products, but a net importer Cheese Importers Association of America (additional cash receipts net of Notably, over that same period, of butter. Last year, for example, 204 E St. NE, Washington, DC 20002 additional production costs and the CME cash market Grade AA the US imported almost 79 mil- Eastern Wisconsin Cheesemakers’ and promotion assessments) earned by butter price averaged under $1.00 a lion pounds of butter and exported Buttermakers’ Association Barb Henning, Henning’s Cheese producers as a consequence of the pound for several years (including about 58 million pounds of butter. 21812 Ucker Road, Kiel, WI 53042 promotion expenditures divided by just under 71 cents per pound in Just last week, we reported that, in International Dairy-Deli-Bakery Association the historical level of promotion 1994), and never averaged higher May, US butter production fell 4.2 8317 Elderberry Road, Madison, WI 53717 expenditures made to generate than $1.82 per pound (the clos- percent from May 2018, US butter Missouri Butter & Cheese Institute those additional profits. est was in 2004, when the Grade exports declined 33 percent, and Terry S. Long, 19107 Factory Creek Road, So it would appear that pro- AA butter price averaged $1.8166 butter imports were up 87 percent. Jamestown, MO 65046 ducers would profit if promo- a pound). So there wasn’t a great The US needs more milkfat. Nebraska Cheese Association tional spending for butter were financial incentive for producers Finally, we’re optimistic that, Ed Price, Fremont, NE 68025 to increase, although, as USDA’s to try to boost milkfat content. from a nutritional perspective, New York State Cheese Manufacturer’s Assn report points out, as spending But 2010 was the last year in the news is going to remain posi- Kathyrn Boor, 11 Stocking Hall, Cornell University, Ithaca, NY 14853 increases, each additional dol- which the milkfat content of the tive for saturated fat in general lar spent has a declining effect, US milk supply averaged under and milkfat specifically, thanks in North Central Cheese Industries Assn Lloyd Metzger, SDSU, Box 2104, meaning that the BCR declines as 3.70 percent. It reached 3.76 per- part to producer-funded research. Brookings, SD 57007 spending increases. cent in 2013, fell below that mark As we report this week, a group North Dakota Cheese Makers’ Assn Second, National Milk Produc- for a couple of years, then hit 3.79 of experts in The BMJ is calling Chuck Knetter, Medina, ND 58467 ers Federation reported two years percent in 2016, 3.84 percent in into question the advice to reduce Ohio Swiss Cheese Association ago that the contribution of milk- 2017 and 3.89 percent in 2018. intake of total saturated fat, as set Lois Miller, P.O. Box 445, fat to farm milk prices has risen Meanwhile, CME butter prices out in draft World Health Organi- Sugar Creek, OH 44681 from 38 percent for a number of have averaged above $2.00 per zation guidance. Those guidelines South Dakota State Dairy Association Howard Bonnemann, SDSU, Box 2104, years to over 50 percent since mid- pound every year since 2014. should consider different types of Brookings, SD 57007 2015. But it would appear that there’s fatty acids and, more importantly, Southwestern Wisconsin Looked at in a different way, still room for the average milk- the diversity of foods containing Cheese Makers’ Association for a number of years, protein was fat content of producer milk to saturated fatty acids that might be Myron Olson, Chalet Cheese Coop, the most valuable component move higher in the future. In the harmful, neutral, or even benefi- N4858 Cty Hwy N, Monroe, WI 53566 in producer milk prices (at least European Union, for example, the cial to health, the experts said. Wisconsin Association for Food Protection for those federal orders that have butterfat content of milk has aver- Butterfat’s best days lie ahead, Bob Wills PO Box 620705, Middleton WI 53562 multiple component pricing), until aged around 4 percent annually for which means producing more but- Wisconsin Cheese Makers’ Association just a few years ago. Just to men- roughly the past decade. Granted, terfat makes sense, and cents, for John Umhoefer, 5117 W. Terrace Dr., tion one example of this: on the overall production per cow in the dairy producers. Suite 402, Madison, WI 53718 EU is considerably lower than in Upper Midwest order, protein was Cheese Reporter welcomes letters to the Wisconsin Dairy Products Association the most valuable component from the US (around 15,700 pounds in Brad Legreid, 8383 Greenway Blvd., editor. Comments should be sent to Dick Middleton, WI 53562 2002 through 2014, but butterfat the EU last year compared to over Groves, at [email protected].

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 July 12, 2019 CHEESE REPORTER Page 3

exports are expected to decline by and in production 5 percent, while EU Milk Production Expected To Grow more than 10 percent in 2020. EU domestic use (for chocolate) is 1% In 2019; Cheese Output To Rise With the declining price of but- expected to to continue rising. ter, the EU is expected to become Also during the first four months Brussels, Belgium—Sustained The EU remains competitive more competitive on the global of 2019, exports of fat-filled pow- demand for European Union dairy despite the increasing SMP price market, leading to a 5 percent ders, and other products in the products, lower supply in the main (2,044 euros per ton in mid-June, increase in EU butter exports and same product category, increased EU competitors, favorable weather almost 20 percent higher since a further increase in domestic use by 12 percent, implying some shifts conditions and price environment the beginning of the year and the (up 1 percent) in 2019. in export demand for EU powders. are likely to favor EU milk produc- highest price since January 2017). In the first four months of 2019, Turning to the macro-economic tion growth, expected at close to 1 Until April, EU exports reached EU production of whole milk pow- outlook, a continued slowdown percent in 2019 and 2020, accord- almost 350,000 tons, up 34 per- der continued declining, by around of the world economy during the ing to the European Commission’s cent. Among the main importers, 12 percent, despite an overall summer and fall of 2019 is antici- latest short-term outlook report for shipments to China, Indonesia and increasing global demand for pated. The general uncertainty fol- EU agricultural markets. the Philippines more than doubled. WMP, the report said. China, the lowing the trade frictions between Milk production is expected to In 2019, EU SMP exports are biggest WMP importer, boosted its the US and its main trading part- increase in Ireland, Poland, Den- forecast up 14 percent. Given the imports by 33 percent, but only 1 ners remains high and weakens mark and the United Kingdom. lower availability at the begin- percent was of European origin. market confidence, the report said. Production in Germany and France ning of 2020, with stocks being The seasonal milk production Due to this slower growth, pre- is expected to remain stable. low, SMP production might grow decline in New Zealand is expected vious guidance from the European To some extent, production further (up 5 percent) in order to to give the EU some WMP mar- Central Bank and the US Federal growth could be limited by proces- satisfy global demand, the report ket opportunities. Nevertheless, Reserve on interest rates in 2019- sors’ demand, focusing more and said. Nevertheless, due to lower for the full year, the decline in 2020 have been revised into a first more on adding value than on vol- availability in the EU, EU SMP exports should reach 15 percent cut of the rates this fall. ume, the report noted. Since the beginning of this year, the average EU raw milk price remained above 34 euros per 100 kilograms, 6 percent above last year and 7 percent above the 2014- 18 average. During the first four months of this year, the EU recorded cheese export growth of 3 percent, mainly driven by an increase of shipments THERE’S A REASON to its top three markets: the US, up 7 percent; Japan, up 18 percent; WE CALL IT and Switzerland, up 2 percent. Expected increases in both “YIELDMASTER.” domestic (up 0.5 percent) and export demand (up 3 percent) for EU cheeses in 2019 are likely to drive a 1 percent production increase, in a context of stable returns compared to other dairy products, the report said. The continued decline in drinking milk consumption in the EU is driving a production drop in fresh dairy products, expected at 0.2 percent in 2019. Drinking milk Making every drop of represents 25 percent of domestic milk count. dairy use. By contract, EU drinking milk exports grew in January-April, par- We designed the Tetra Pak® Cheese Vat ticularly to China (up 24 percent). Yieldmaster 2 with dual shaft technology The growth towards China repre- to produce a higher yield. sented 32 percent of export growth of EU fresh dairy products (up 12 • Better fat retention than any other percent in milk equivalent). This vat. Period. trend is likely to continue, leading to a 10 percent growth of fresh • Dual shaft counter-rotating blades dairy product shipments in 2019. for efficient cutting and stirring to Overall, there is an increas- ensure curds get the treatment they ing trend in domestic use of dairy need, when they need it. products, driven by cheese in par- • Durable construction and robust ticular, the report said. In 2019, seals. this domestic use could grow fur- • Easy to operate, clean and maintain. ther by 0.5 percent. The full disposal of public inter- The Tetra Pak® Cheese Vat Yieldmaster vention stocks and a significant 2 combines the latest technology with drop in private stocks are expected to release on the market 225,000 our more than 80 years of experience tons of skim milk powder. designing cheese processing equipment. Despite this significant stock We think you’ll like the results. change, the sustained demand, both on domestic and world mar- Moving food forward. Together. kets, is expected to support SMP www.tetrapakusa.com production growth of close to 3 percent in 2019, the report said. For more information, visit www.tetrapak.com Page 4 CHEESE REPORTER July 12, 2019

2. What type of product recall cov- Three Things Every erage does our company have? Food Safety Director Recall is almost always on a from our food safety director’s mind. Dairy Should Know About Their processors often have written recall plans and regularly practice archives Company’s Insurance mock recalls. Due to the increasing number of recalls over the past 50 YEARS AGO MICHAEL HARTY, five years, insurance carriers are Account Executive, M3 Insurance July 11, 1969: Appleton, WI— narrowing the scope of the cover- [email protected] In a meeting here this week, age and/or offering lower limits for 37 representatives of Wiscon- Read through the food safety direc- 1. Does our insurance provide lia- product withdrawal and product sin dairies and 10 cooperatives tor’s job description and chances bility coverage should a consumer recall insurance. expressed concern that the pro- are you won’t see “insurance deci- contract a foodborne illness from Many of the property and gen- posed changes in the Chicago sion maker” listed as one of the key eating our product? eral liability insurance policies regional milk marketing order This may seem like an unnec- functions. While the food safety available today may include a would develop inequities in milk essary question. A food processor director is responsible for diligently modest amount of limited product pricing to the detriment of the often assumes if they have general controlling the risks associated withdrawal coverage. This cover- state’s producers. with food processing, the respon- liability coverage it includes cov- age, however, is not a true product erage for bacteria or viruses that sibility of transferring those risks recall coverage and is called “lim- Madison—The second billboard could cause a foodborne illness. to the appropriate insurance cov- ited” for a reason. Limited product program this year under spon- But, as Jim Brunker’s article in the erages typically falls to the CFO, withdrawal coverages will gener- sorship of the American Dairy June 9, 2017 issue of the Cheese controller or, in some operations, ally cover the withdrawal expenses Association of Wisconsin may Reporter {www.cheesereporter. the owner or president. incurred by the dairy processor only currently be seen in 150 loca- com/M3/Brunker.june9.htm} high- But what can happen when the up to the stated limits in the policy. tions throughout the state this lighted, this isn’t always the case: managers of these critical busi- They will not, however, cover the month. Each of Wisconsin’s four ness functions – food safety and “Today’s issues with inconsis- costs that your customers incurred regional cheese associations have insurance – operate in silos with tent product liability coverage can as a result of your recall or pay for purchased some of the billboards limited interaction or information be traced back to 1986 when the the value of the recalled product. to promote member products. sharing? “absolute pollution exclusion” was In many organizations, the This is the topic that Jen Pino- added to general liability insurance owner, CFO or risk manager are the 25 YEARS AGO Gallagher, M3’s director of food policies by the Insurance Services primary insurance decision makers Office (ISO). ISO is the larger of two July 8, 1994: St. Paul, MN—A and agribusiness practice group, who have the option of explor- federal court ruling here allows and I presented on during the national insurance service organiza- ing a broader stand-alone product tions that collect statistical data and dairy plants to resume paying June 19 Wisconsin Association recall coverage solution which pro- premiums to high-volume Min- develop standard insurance policy vides not just product withdrawal for Food Protection event in Mad- coverage forms on behalf of insur- nesota dairy producers. A tem- coverages, but also can come with ison, WI. ance companies. porary injunction against the In our presentation, we recog- In addition, courts throughout the pre-event food safety consultation. Minnesota Department of Ag nized that a food safety director United States have wrestled with the A robust product recall policy can was granted, stating a state law has intimate knowledge of food applicability of the pollution exclu- be written to cover costs associ- against plants paying volume safety risks. And, we highlighted sion when it comes to food related ated with the business interruption premiums appears to interfere that if the organization’s insurance issues. The result: inconsistency from caused by the recall, third-party unfairly with interstate com- decision maker is not privy to this state to state in interpretation of the consultant fees, the expenses your merce, especially since it has information – or is working with policies. For example, the Wisconsin customers incurred as a result of Supreme Court in Wilson Mut. Ins. been applied to out-of-state an insurance broker with limited the recall and over-time costs of companies. food processing knowledge – these Co. v. Falk, 857 N.W.2d 156 (Wis. employees. The right policy could 2014), determined that bacteria are risks could be left underinsured or, provide access to a crisis manage- Arlington, VA—NMPF is pollutants. If bacteria are pollutants ment team to help protect and worse, not covered at all. and general liability policies exclude seeking support for its efforts rehabilitate your company’s brand Below are three questions we coverage for claims caused by a pol- to eliminate Canadian trade shared with the audience that can lutant, then a claim arising out of and reputation as well. barriers to US dairy products. facilitate a conversation between Listeria M. contamination could be Simply put – not all product NMPF urges the Clinton admin- the insurance decision maker and denied under a typical general liabil- istration to abandon plans for the food safety director: ity policy.” • See Harty, p. 6 a “peace-clause” in farm trade negotiations that would allow Canada to maintain bilateral THE IVARSON 640 BCS trade barriers for most US dairy The IVARSON 640 BLOCK CUTTING SYSTEM is a products and waive US rights to proven workhorse in the cheese conversion & challenge Canadian tariffs. packaging industry. Designed speciﬁcally for feeding todays highest output chunk and slice lines, the 640 BCS is engineered with simplicity 10 YEARS AGO IVARSONINC.COM and sanitation in mind. IVARSON’s reputation for quality assures you that the equipment is July 10, 2009: Marshfield, constructed with quality materials that stand up WI—Nasonville Dairy recently to the harshest environment, and the equipment is back by the best service and guarantee in acquired Suttner’s Cheese of Cur- the business. tiss, WI. Dennis Suttner, longtime The IVARSON 640 BCS will deliver loaves and bars owner of Suttner’s Cheese, had to your slice and chunk lines with consistent recently expressed a desire to retire, dimensions and NO TRIM! This means higher efﬁciency, better yield and increased throughput and Nasonville decided to expand for your downstream lines. in that direction, said Nasonville

Process a 640 pound block in less than 4 Dairy owner Ken Heiman. minutes, controlled for minimum giveaway Fully automated block reduction Madison—Neal Surbaugh, 56, Capable of cutting slabs from 1.4 to 7 inches, accurate to 1/32” national sales manager for The Quick changes cutting harps allow for multiple Deli Source, Inc., passed away formats on the same production run Additional downstream cutting technology Sunday, June 28. In 1990, Sur- available baugh joined the Wisconsin Milk Marketing Board as regional manager. In 2003, he moved to The WISCONSIN PROUD. QUESTIONS OR INQUIRIES... GIVE US A CALL! 414-351-0700 Deli Source, a family-owned con- vertor of cheese slices and chunks. For more information, visit www.ivarsoninc.com July 12, 2019 CHEESE REPORTER Page 5

US, supporting brands such as to Cooperativa Central dos Produ- New Heritage Capital Lactalis Group President, Galbani, Parmalat, sig- tores Rurais de Minas Gerais Ltda. Invests In Welcome Acquires US Yogurt gi’s, Stonyfield, Karoun, rondele sale of 100 percent of its shares in and Black Diamond. Itambe Alimentos, SA, to Groupe Dairy Holdings Division Of Ehrmann “The Ehrmann acquisition is a Lactalis in December 2017. Boston, MA—New Heritage Cap- Buffalo, NY—Lactalis Group terrific complement to our Stony- Grupo LALA said it had ital this week announced a new has acquired Ehrmann Common- field and siggi’s brands in the US,” believed CCPR’s sale of its shares investment in Welcome Dairy wealth Dairy, the US yogurt busi- said Thierry Clement, CEO of in Itambe Alimentos to Groupe Holdings, LLC, a provider of dairy ness of Ehrmann AG. Lactalia North America. Lactalis represented a potential flavorings, cheese sauces, season- Established in 2009, Ehrmann The capability Lactalis gains conflict with certain agreements ings and functional cheese. Commonwealth Dairy has two with Ehrmann’s two plants, signed between Vigor and CCPR. With extensive in-house manufacturing facilities, one in “combined with the power of LALA had therefore initiated research and development and Brattleboro, VT, and the other in our leading brands, ensures the legal proceedings to determine the production capabilities, Wel- Casa Grande, AZ, and manufac- long-term growth of the Lacta- appropriate course of action. come Dairy Holdings was created tures and distributes yogurt and lis yogurt busines in the US, and According to Grupo LALA, the through the 2016 merger of Wel- other dairy products under the underlines our commitment and agreement reached between Grupo come Dairy, LLC, and Gamay Food Green Mountain Creamery and ambition in the category,” Clem- LALA and Groupe Lactalis stipu- Ingredients, LLC, to provide cus- Liebe brands. It also features a pri- ent added. lates: all judicial and arbitral pro- tomers with a full-service cheese vate label business. Meanwhile, Mexico-based cedures open to date between both ingredient offering from product Lactalis Group continues its Grupo LALA has announced companies have been terminated development through final manu- growth strategy in the US with that, last week, Grupo LALA and for each party; and the contractual facturing. its fourth acquisition in two years. Groupe Lactalis reached an agree- relationship in Mexico between New Heritage Capital com- With Commonwealth Dairy, Lac- ment related to prior legal pro- Parmalat and Grupo LALA has pleted the investment in Welcome talis now has eight plants in the ceedings initiated by LALA due been terminated. Dairy Holdings via its Private IPO® solution, which leaves operating control in the hands of the reinvesting founders while providing them with the desired liquidity and financial flexibility to acceler- ate future growth. “Welcome Dairy has been our family’s business going back nearly 70 years, and it was important for us to find a partner who would enable us to retain operating control and preserve our legacy,” said Terry Eggebrecht, CEO of Wel- come Dairy, which traces its roots back to the late 1800s, when the company was first established as a Colby cheese manufacturer in Colby, WI. “We have worked tirelessly over the years to build our unique culture focused on customer experi- Delivering leading edge solutions and high quality cheese making equipment ence and product innovation,” proven to produce higher yields and higher consistency with higher profits. said Terry Schneider, president and chief operating officer of Gamay Food Ingredients. “In Heritage, we Advanced Cheese Vat (ACV) have found a partner that believes in our mission and is supportive of our vision.” “We are incredibly excited to partner with Terry Eggebrecht, Advanced Dosing System (ADS) Terry Schneider, and the entire Welcome Dairy team,” said Melissa Barry, partner at New Heritage Capital. “We believe the company’s exceptional reputation, strong management team, and unique full-service offering from flavor Advanced Finishing Vat (AFV) development through final manufacturing differentiate it as a true industry leader amongst its peers. We look forward to working with our management partners here to Advanced Cheese Packaging (ACP) execute on their exciting growth plans for the future.” New Heritage Capital is a Bos- ton-based private equity firm with a 20-year history of partnering with Large enough for any project but still small enough to care. growing, middle market, founder- owned businesses. With its invest- Engineering | Fabrication | Controls | Installation ment structures like the Private IPO, Heritage provides founders with a combination of liquidity and growth capital while allowing www.APT-INC.com founders to maintain control of Employee Owned and Operated with locations in Minnesota | Idaho | California their business. For more information, visit www.APT-Inc.com Page 6 CHEESE REPORTER July 12, 2019

Government Of ment and a new pasteurizer, For Stonetown Artisan Cheese Harty which will enable the processor to Ltd., the investment of $149,238 Continued from p. 4 Canada Supporting increase production and automate will enable the company to pur- processes. chase and install new equipment recall or withdrawal coverages are Dairy Processing Also, an investment of $265,300 to increase cutting, processing, created equal. If the CFO is aware will support Natural Pastures storage and aging capacity. This of the critical steps involved in a Businesses In Cheese Company for the purchase will enable Stonetown to expand recall as well as the impact a recall and installation of new manu- operations and broaden product will have on the company’s cus- Ontario, BC facturing equipment to increase offerings. tomers and reputation, he or she Salt Spring Island, British Colum- capacity and efficiency in cheese “Saputo is very pleased with this will likely find that the limited bia—Marie-Claude Bibeau, Cana- production and packaging, it was announcement. This grant pro- product withdrawal coverage is just da’s agriculture minister, recently announced. vided under Agriculture and Agri- too… well, limited. announced an investment of more Last month, the member of Par- Food Canada’s Dairy Processing than $1.2 million to support the liament for London North Center, Investment Fund will go towards 3. What resources can my food dairy industry in British Columbia. Peter Fragiskatos, announced on improved operational efficiency safety team access from either The announcement came after Bibeau’s behalf an investment of at our plant and assist in meeting our insurance carrier (company) or insurance broker? Bibeau toured Salt Spring Island over $2 million under the Dairy future demand for our high qual- Cheese Company last Saturday, Processing Investment Fund for Not every insurance carrier likes ity specialty dairy products,” said covering food risks. In fact, in the July 6, 2019. two dairy processors in St. Marys, Sandy Vassiadis, vice president, Some 13 on-farm projects, total- Ontario. past few years, several insurance communications and corporate carriers who historically provided ing $853,901, were highlighted An investment of $1,933,060 responsibility, Saputo Inc. in support of cow’s mlk produc- for Saputo Dairy Products Canada coverage for food processors, have “This program supports growth exited the food business com- ers on Vancouver Island under will help to expand the company’s and protects jobs created by small Canada’s Dairy Farm Investment production area and new cold stor- pletely. businesses like ours,” said Hans When a dairy processor chooses Program. Funded projects include age capacity. Weber, owner of Stonetown to work with an insurance broker the adoption of robotic milkers, The project consists of the pur- Artisan Cheese, a family-owned and an insurance carrier who spe- automated feeding systems, herd chase and installation of equipment on-farm cheese processing plant, cialize in the food industry, the management tools, and cow com- in order to increase production using whole milk from its own processor gains more than just fort equipment. capacity, while improving overall milk cows. good coverage. Carriers and bro- Two more projects, totaling efficiency. Canada’s Dairy Processing kers who specialize in food insur- $379,740, were also highlighted It is expected that the proj- Investment Fund, valued at $100 ance coverages will often provide under Canada’s Dairy Processing ect will allow Shepherd Gourmet million, is designed to help dairy food safety consulting and support Investment Fund. This funding Dairy Inc., which was acquired by processors modernize their opera- or access to discounted or even free includes $114,440 to Salt Spring Saputo last year, to increase the tions, improving productivity and food safety training. They essen- Island Cheese Company for new use of Canadian milk and to create competitiveness. tially become an extension of the production and packaging equip- approximately eight new jobs. “The increased productivity food safety team. resulting from this funding will In our presentation in June, in a enable us to respond to the grow- room filled with food safety experts, ing demand and meet our consum- only one person raised their hand ers’ expectations,” Hans Weber when we asked who amongst them Fluid Milk continued. was involved in the insurance Canada’s dairy sector is also selection process. It makes perfect Our strategy for buying and selling supported by the $250 million, sense that the individual whose job has your best interests in mind. five-year Dairy Farm Investment description includes “control food Program. safety risks”, also has a seat at the Both programs support the dairy table when it comes to choosing industry as it adapts to anticipated the appropriate insurance for the impacts from the Canada-European operation. When this happens, the Cream & Butter Union Comprehensive Economic entire operation can benefit…and It’s about balancing supply and demand. and Trade Agreement (CETA). be better protected. Dairy Powders Logistically speaking, We’ve got your bottom line. Cheese We don’t make cheese, we bring cheese solutions to the table.

Call 314-822-5960 For our latest market reports, articles and podcasts visit the Learning Center at www.jacoby.com.

Utilizing farm to market expertise to create a proﬁtable future for the dairy industry.

For more information,visit www.jacoby.com For more information, visit www.dairyconnection.com July 12, 2019 CHEESE REPORTER Page 7

Tammy Duckworth (D-IL) recently Also in Congress, US Rep. EPA Doesn’t Change Corn Ethanol introduced the RFS Integrity Act Francis Rooney (R-FL) last Target In Renewable Fuel Proposal of 2019, which would require small month introduced the Eliminat- refineries to petition for RFS harding the RFS and Its Destructive Washington—Andrew Wheeler, “This is yet another setback in ship exemptions by June 1 of each Outcomes Act to repeal the RFS administrator of the US Environ- a long string of setbacks for home- year. This change would ensure mandate. mental Protection Agency (EPA), grown biofuels and the American that EPA properly accounts for “Since the RFS was created in last Friday issued a proposed rule family farmers who grow them,” exempted gallons in the annual 2005 there have been severe unin- under the Renewable Fuel Stan- said Roger Johnson, president Renewable Volume Obligations it tended consequences,” Rooney dards (RFS) program that would of the National Farmers Union. sets each November, the senators said. “For years the RFS has set the minimum amount of renew- “EPA and this administration have said. wreaked havoc on boat engines able fuels that must be supplied to undermined the intent of RFS and The bill also increases transpar- and other small engines which the market in calendar year 2020. destroyed demand for billions of ency by ensuring that key infor- are vital to the Florida economy.” Among the proposal: gallons of ethanol.” mation surrounding small refinery Also, ethanol-based fuels defeat  “Conventional” renewable “It’s unacceptable that EPA exemptions is made publicly avail- the purpose of their stated envi- fuel volumes, primarily met by would set biofuel volumes below able. And it requires the EPA to ronmental goals. corn ethanol, would be maintained demand at a time when farmers, report to Congress on the method- Most of the experts the US Gov- at the implied 15-billion-gallon biofuels producers and agribusiness ology it uses when granting small ernment Accountability Office target set by Congress. owners are forced to shed jobs and refinery exemptions, a process that (GAO) interviewed for a recent  EPA is proposing an advanced close plants,” said US Sen. Chuck has been repeatedly carried out report generally agreed that, to biofuel volume requirement for Grassley (R-IA). behind closed doors with little to date, the RFS has likely had a lim- 2020 of 5.04 billion gallons, which In other RFS-related news, US no congressional oversight, accord- ited effect, if any, on greenhouse is 0.12 billion gallons higher than Sens. Deb Fischer (R-NE) and ing to Fischer and Duckworth. gas emissions. the advanced biofuel volume requirement for 2019.  The cellulosic biofuel volume requirement of 0.54 billion ethanol-equivalent gallons for 2020 is based on the EPA’s production projection, which is 0.12 billion ethanol-equivalent gallons higher than the cellulosic biofuel volume finalized for 2019.  EPA is proposing to maintain the biomass-based diesel volume for 2021 at 2.43 billion gallons. The EPA’s proposal has failed to account for lost volume due to refinery exemptions and uphold President Trump’s commitment to the Renewable Fuel Standard (RFS), said the National Corn Growers Association (NCGA). If the EPA continues to grant retroactive waivers, the proposed Renewable Volume Obligation (RVO) numbers “are meaningless and the EPA is not following the law,” said Lynn Chrisp, a Nebraska farmer and NCGA president. “Farmers are facing a very tough economic environment and the continued waiver abuse chips away at farmers’ bottom line.” Since early 2018, the EPA has granted 53 RFS exemptions totaling 2.61 billion ethanol-equivalent gallons of renewable fuel, the NCGA said. There are currently 38 pending petitions for 2018. EPA’s proposal “doesn’t reflect the needs and capabilities of the domestic biodiesel and soybean industries and doesn’t seem to reflect President Trump’s stated support and commitment to domestic biofuels and a strong Renewable Fuel Standard,” said Davie Stephens, a Kentucky soybean producer and president of the American Soybean Association. “We will continue to voice our concerns and demonstrate the capabilities we have to contribute to stronger growth in domestic biodiesel, creating higher values for US soybeans, and all the economic, energy, and environmental benefits that come along with it,” Stephens said. For more information, visit www.loosmachine.com Page 8 CHEESE REPORTER July 12, 2019

nutrients, leading to fortification deaths globally, and lessons should Advice To Reduce Intake Of Saturated of selected staple foods. be learned,” the analysis stated. Fat To Improve Health Questioned Nutrition science then changed “Recommendations to reduce focus to policies for preventing saturated fat might cause a reduc- London, England—Advice to “But this fails to take into chronic diseases such as cardiovas- tion in the intake of nutrient dense reduce intake of total saturated account considerable evidence cular disease in affluent countries, foods that are important for pre- fat and replace it with unsaturated that the health effects vary for and the single nutrient approach venting disease and improving fat to curb levels of chronic dis- different saturated fatty acids and was maintained. This was based health,” the analysis continued. ease and prevent deaths, set out that the composition of the food mainly on cross-country compari- “We’re concerned that, based on in draft World Health Organiza- in which they are found is crucially sons between saturated fat intake several decades of experience, a tion (WHO) guidance released last important,” said the analysis, writ- and cardiovascular disease mortal- focus on total saturated fat might year, has been called into question ten by Arne Astrup of the Uni- ity. have the unintended consequence by experts in The BMJ. versity of Copenhagen and several The simple two-step deductive of misleading governments, con- WHO draft guidelines on other experts. reason that “dietary fat, and satu- sumers, and industry towards pro- dietary saturated and trans fatty To understand why the current rated fat in particular, increases moting foods low in saturated fat acids for adults and children were misconceptions about saturated fat serum cholesterol” and “serum cho- but rich in refined starch and sugar. published for consultation in May are so solidly anchored in major lesterol is a risk factor for coronary “The WHO guidelines on sat- 2018. They recommend reducing public health bodies, including heart disease” led to the conclusion urated fat should consider differ- intake of total saturated fatty acids WHO, the historical evolution of that all dietary fat, and saturated fat ent types of fatty acids and, more to less than 10 percent of total guidelines must be considered, the in particular, should be reduced to importantly, the diversity of foods energy consumption and replac- analysis noted. prevent cardiovascular disease, the containing saturated fatty acids ing with polyunsaturated fat and Up until the 1950s, nutrition analysis explained. The US dietary that might be harmful, neutral, or monounsaturated fat to reduce science focused on single nutrients, guidelines published in 1980, and even beneficial in relation to major incidence of cardiovascular disease and major public health policies international guidelines ever since, health outcomes,” the analysis and related mortality. focused on deficiencies in micro- have focused on reducing intake of concluded. saturated fat. A table accompanying the “Historically, the focus on analysis lists several nutrient dense Celebrating reducing saturated fat led to the foods that also contain substantial proliferation of industrially pro- amounts of saturated fat, includ- duced food products low in fat, ing full fat cheese, which is high in saturated fat, and cholesterol and medium and long chain saturated to the dissemination of productss faty acids, contains a wide diversity of typical bioactive fatty acids, of based on technologies to replace saturated fat,” the analysis noted. along with protein, calcium, mag- One example is the production of nesium, and lactic acid bacteria, LIVES and and has a complex matrix struc- FAMILIES COMMUNITIES margarine and spreads based on LIVELIHOODS ture. Meta-analyses of food based SUPPORTED IMPROVED partial hydrogenation of vegetable PROTECTED oils, which increased the content observational studies have found of trans fatty acids from zero to up that cheese intake is associated As we look back on 50 years in business, it’s the relationships we’ve forged that with slightly reduced risk of car- stand out. We’re grateful for our clients and proud to secure your people and assets to 40 percent of total fat. from risk. But more than anything we’re humbled by the opportunity to give back to The widespread consumption of diovascular disease and diabetes. the people and communities that have nurtured us and helped sustain our growth. trans fat is considered to have been This is your celebration as well. responsible for 6 percent to 19 percent of all coronary heart disease events in the US in 2006 and to Turkey Hill’s New have caused about 2,700 deaths 800.272.2443 www.m3ins.com annually and the loss of 570,000 Investment Plan life years in the UK every year. Includes More Ice Property & Casualty | Employee Benefits | M3 Financial | Personal Insurance “Scientific and policy missteps MADISON MILWAUKEE GREEN BAY WAUSAU EAU CLAIRE may have led to many unnecessary Cream Manufacturing Capacity, Technology Lancaster, PA—Turkey Hill LLC, a manufacturer and distributor of branded ice cream and refrigerated drinks, recently announced that it will support recent and continued growth through investments in its Laboratory and In-line Bruker Optics’ MPA II with Liquid Sampling Module delivers excellent precision and accuracy for manufacturing operations and an Process Analyzers for Dairy determination of constituents in liquids, solids and increase in new hiring efforts. powders, and everything in between. You can analyze Earlier this year, Turkey Hill MPA II with Liquid Matrix-F raw milk, cream, ice cream pre-mix, and whey without was acquired by an affiliate of Peak Sampling Module Watch the In-line Process Live Demo dilution or other preparation, and all solid, cultured and Rock Capital from The Kroger Co. thickened products with only one system – unique Now a standalone company, Tur- 3-A Refl ectance & on the market! 3-A Transmission Probes key Hill is focused on geographic Over 2,000 Matrix-F systems are working hard to profi le expansion and new product inno- manufacturing processes all over the world. Now, with Watch the MPA II vation to support rising consumer Live Demo 3-A certifi ed transmission and refl ectance probes you can demand. realize the benefi ts of in-line analysis in your dairy plant. Simplify routine testing - shorter learning curve The company’s existing foot- Realize faster ROI - ALL Products and ALL Parameters print already includes what it Eliminate the need to cross train on multiple instruments describes as one of the largest pro- Obtain data from start to fi nish to support lean manufacturing and six sigma initiatives Bruker Optics Inc. duction facilities for ice cream and Matrix-F In-line process analyzer with up to six measurement points with a single analyzer Billerica, MA 01821-3991 Tel: +1 (978) 439-9899 refrigerated drinks in the US. 3-A certifi ed refl ectance probe for solids, powders and high-solids liquids +1 (888) 427-8537 3-A certifi ed transmission probe for liquid measurement www.bruker.com/dairy Turkey Hill’s investment plan includes capacity expansion, Contact us for more details: [email protected] investments in existing lines to Applied Spectroscopy provide the latest technology and Innovation with Integrity manufacturing capabilities, and facility renovations and enhance- For more information, visit www.bruker.com/dairy ments to support its associates. July 12, 2019 CHEESE REPORTER Page 9

LGM-Dairy uses futures prices gram, designed to insure against USDA Begins Making Payments Under for corn, soybean meal, and milk to unexpected declines in the quar- New Dairy Margin Coverage Program determine the expected gross mar- terly revenue from milk sales rela- gin and the actual gross margin. tive to a guaranteed coverage level. Washington—USDA’s Farm Ser- “The DMC program doesn’t LGM-Dairy is like buying both Under Dairy-RP, the expected vice Agency (FSA) opened enroll- replace a healthy market, but it a call option to limit higher feed revenue is based on futures prices ment for the new Dairy Margin is a crucial safety net in turbulent costs and a put option to set a floor for milk and dairy commodities, Coverage (DMC) program on June times. All dairy producers should on milk prices, RMA explained. and the amount of covered milk 17 and has now started issuing pay- strongly consider enrolling, and Prices for LGM-Dairy are based production elected by the dairy ments to dairy producers who pur- to look closely at coverage at the on simple averages of CME Group producer. The covered milk pro- chased coverage. $9.50 maximum level,” he added. futures contract daily settlement duction is indexed to t where the Dairy producers can enroll in USDA recently reminded dairy prices, and are not based on the producer is located. the program through Sept. 30, producers that 2018 farm bill pro- prices dairy producers receive at Dairy-RP offers two revenue 2019. visions allow for a dairy operation the market. A premium subsidy pricing options: the Class Pric- Authorized by the 2018 farm to participate in both FSA’s DMC is available for those policies that ing Option uses a combination of bill, the DMC program replaces program and the Rick Manage- insure multiple months during the Class III and Class IV milk prices the Margin Protection Program for ment Agency’s Livestock Gross insurance period. as a basis for determining coverage Dairy (MPP-Dairy). The program Margin (LGM-Dairy) program. There are also no restrictions and indemnities; and the Com- offers protection to dairy produc- LGM-Dairy provides protection from participating in DMC in con- ponent Pricing Option uses the ers when the difference between when feed costs rise or milk prices junction with other RMA insur- component milk prices for butter- the all-milk price and the average drop and can be tailored to any size ance products. fat, protein and other solids as a feed cost (the margin) falls below farm. Gross margin is the market RMA launched the Dairy Rev- basis for determining coverage and a certain dollar amount selected by value of milk minus feed costs. enue Protection (Dairy-RP) pro- indemnities. the producer. To date, nearly 10,000 operations have signed up for the new program, and FSA has begun paying approximately $100 million to producers for January through May. DMC provides coverage retroactive to Jan. 1, 2019, with applicable payments following soon after enrollment. The May income over feed cost margin was $9.00 per hundred- St. George, UT weight, triggering the fifth payment for eligible dairy producers who Now Open purchase the $9.50 level of coverage under DMC, according to FSA. Payments for Jan., Feb, March and April also were triggered. With the 50 percent hay blend, FSA’s revised April 2019 income over feed cost margin is $8.82 per hundredweight. The revised margins for January, February and March are, respectively, $7.71, $7.91 and $8.66. Dairy producers can choose coverage levels from $4.00 up to $9.50 at the time of signup. More than 98 percent of the producers currently New, Complete Warehousing & enrolled have elected $9.50 coverage on up to 95 percent of their production history, FSA noted. “Times have been especially Transportation Services tough for dairy farmers, and while Our new 95,000 square foot warehouse in St. George, UT, we hope producers’ margins will increase, the Dairy Margin Cover- is centrally located between California, Clovis, NM, and Jerome ID, age program is providing support and features: at a critical time for many in the industry,” said Bill Northey, USDA  60,000 square feet of refrigerated storage under secretary for farm produc-  20,000 square feet of -20 degree freezer space tion and conservation.  10,000 square feet of 0 degree freezer space “With lower premiums and higher levels of assistance than St. George is our newest of 13 warehouses and previous programs, DMC is already like our facilities offers: proving to be a good option for a  Over 200 trucks on the road with 500 trailers lot of dairy producers across the  AIB Certified Warehousing. country,” Northey continued.  Sanitary high cube food grade distribution center. “DMC aid represents signifi-  Computerized temperature and humidity alarm. Bob Smith cant improvement from previous  Pallet racking or bulk storage. programs, and with dairy farmers  Variable Temperature Aging Rooms. 608-435-6561 x 229 facing a fifth year of low prices,  Cloud-based Inventory Management [email protected] receiving better assistance in a timely fashion is a matter of sur- vival for some family farms,” said Locations in: Jim Mulhern, president and CEO La Crosse, Wilton & Sparta, WI, Tomah, WI; Kendall, Ontario; St. George, UT of the National Milk Producers Federation (NMPF). For more information, visit www.martinmilk.com Page 10 CHEESE REPORTER July 12, 2019

Global Output Most of the milk produced be in the manufacturing sector, destinations for all dairy products (Continued from p. 1) globally is consumed in the form notably in confectionary, infant are the Middle East and North of fresh dairy products, and the formula and bakery products. Africa, developed countries, South share of fresh dairy products in East Asia, and China. consumption of milk solids in global consumption is expected to Dairy Trade Prospects Imports by the Middle East and Europe and North America, the increase over the coming decade Approximately 8 percent of world North Africa are expected to origi- report pointed out. due to stronger demand growth in milk production is traded interna- nate primarily from the European SMP and WMP are highly India and Pakistan in particular. tionally. Union, while the US and Oceania traded and are largely produced for World per capita consumption of This is primarily due to milk’s are expected to be the main suppli- trade. fresh dairy products is expected to perishability and its high water ers of milk powders to South East Only the production of butter increase by 1 percent per annum content, the report noted. How- Asia. is projected to grow at 1.9 percent over the next decade, slightly ever, in recent years, imports of China is expected to continue to per annum, a faster rate than for faster than over the past 10 years, liquid milk by China from the EU be the world’s major dairy importer, world milk production, the report driven by higher per-capita income and New Zealand have increased particularly for WMP. said. growth. considerably. Most of its dairy imports come SMP is expected to grow at 1.3 Cheese consumption, the sec- The trade share of whole milk from Oceania, although in recent percent per annum, whereas cheese ond most important dairy product powder, and skim milk powder, is years the European Union has and WMP are both projected to in terms of milk solids, occurs pri- high at more than 40 percent of increased its exports of butter and grow at 1.2 percent per annum. marily in Europe, North America world production. SMP to China. China is also a The slower growth of cheese is due and Oceania, and per capita con- The four major exporters of major importer of fresh dairy prod- to the high importance of slow- sumption is expected to continue dairy products in the base period ucts. growing food markets in Europe to increase. The dominant use of are New Zealand, the European Developed countries import a and North America. SMP and WMP will continue to Union, the United States and high level of cheese and butter, Australia. These four countries around 55 percent and 39 per- are expected to jointly account cent of world imports in 2016-18, Business Brokerage • M&A • Commercial Real Estate Experts since 1979 for around 75 percent of cheese, respectively. 78 percent of WMP, 79 percent These percentages are expected of butter, and 81 percent of SMP to be similar in 2028. exports in 2028. International reference prices The EU will continue to be the for dairy refer to processed prod- main cheese exporter, followed by ucts of the main exporters; the the US and New Zealand. It is pro- two main reference prices for jected that the EU’s share in world dairy are for butter and skim milk cheese production will be around powder. Specialists in the 48 percent in 2028, and sustained Since 2015, the prices of butter Dairy and Cheese by increased cheese exports to have increased considerably more Industry Bob Wolter Canada via the CETA and to than for SMP due largely to stron- Artisan Dairy Specialist Business Transaction Specialist Japan following the ratification of ger demand for milkfat compared Structuring and closing successful deals in the dairy Phone 312.576.1881 the bilateral trade agreement ear- and cheese industry is a proven niche for Creative [email protected] to other milk solids on the world Business Services. www.cbs-global.com lier this year. market. We respect the hard work you’ve invested in your New Zealand remains the pri- This is expected to continue past, work tirelessly to understand and value what mary source for butter and whole sets you apart, and position you perfectly for your over the coming decade. unique chosen future. milk powder, on the international market, and its market shares are Weather, Other Uncertainties Maintaining a long list of qualiﬁ ed buyers who are 319 N. Broadway, Green Bay, WI 54303 actively looking to purchase, we welcome the Phone 920.432.1166 • Toll free 800.366.5169 expected to be around 39 percent Over the next decade, world milk chance to prove the advantage we deliver to you. and 53 percent, respectively, by production may be constrained Every step of the way, we deliver professional, efﬁ cient 2028. because of unforeseen weather service that is proven to result in a successful outcome. In contrast to exports, dairy events, the report said. Climate Let’s do this together. imports are spread more widely change increases the chances across countries and the dominant of drought, floods, and disease threats, which can affect the dairy sector in several ways (price vola- tility, milk yield, cow inventory Superior ingredients. Innovative solutions. ©2019 Agropur MSI LLC adjustments). Environmental legislation can have a strong impact on the future development of dairy production. Greenhouse gas emissions account for a relatively large share of total ® emissions in some countries, the Capstone report noted. Any changes in anti-caking agents related policies could affect dairy No clumping • Excellent adhesion • Extend shelf-life • Custom production. to your process • Minimize browning • Minimal dust Specialization and restructuring of milk production in the European Union were given impetus by the removal of milk quotas in 2015, the report stated. In several countries, con- ® cerns about environmental issues Keystone may limit future milk production stabilizer systems increases. Improves stability • Produces optimal mouth feel • Synergistic The relatively high price for blends • Increases moisture retention • Viscosity & gelling milkfat may lead to the substitu- tion of milkfat with vegetable fats (e.g., fat-filled powders) for certain Agropur Ingredients agropuringredients.com uses. 2340 Enterprise Ave [email protected] La Crosse, WI 54603 (800) 359-2345 This adds to the uncertainty over the long-term relative valu- ation of milkfat and nonfat milk For more information, visit www.agropuringredients.com solids, the report noted. July 12, 2019 CHEESE REPORTER Page 11

Mars To Purchase Animal-Free Whey we could demonstrate the con- Under the agreement, Per- (Continued from p. 1) sumer benefits inherent to our fect Day and ADM are working Majority Stake In protein, while starting a convera- together to optimize and scale up Finally, Perfect Day can produce tion about this new approach to the production of dairy proteins Targeted Nutrition various “animal-free” dairy prod- making food.” using fermentation in microflora. Firm foodspring ucts, including vegan and lactose- “Our goal has always been Perfect Day’s first project with free versions of products such as impact — to pave the way for ADM is an animal-free whey pro- McLean, VA, and Berlin, Ger- cheese, yogurt and ice cream. a kinder, greener planet,” said tein that can be used in a variety of many—Mars, Incorporated, This week’s limited release of Perumal Gandhi, co-founder of food products. Through this part- recently announced that it has animal-free ice cream gives con- Perfect Day. “The best way to nership, Perfect Day said it will signed a definitive agreement to sumers a chance to taste what achieve this will be to work with leverage ADM’s existing fermen- acquire a significant majority stake Perfect Day calls the world’s first food companies that already pur- tation infrastructure to bring the in foodspring, a direct-to-consumer animal-free dairy products, while chase huge amounts of dairy ingre- cost of producing animal-free whey targeted nutrition company based demonstrating the potential of this dients. While our B2B deals come protein down to that of conven- in Berlin. technology to potential collabora- to fruition, we are eager to share tional whey protein. As part of this transaction, tors. our progress with the world.” Long term, in order to achieve New Zealand’s Fonterra has sold “What we’re doing here is Last November, Perfect Day had serious impact, Perfect Day will be its interest in foodspring’s parent, completely new to the world,” announced a joint development working with some of the largest Goodminton A.G. said Ryan Pandya, CEO and agreement with Archer Daniels dairy and food companies in the Upon completion of the trans- co-founder of Perfect Day. “We Midland Company (ADM) to world to bring flora-based products action, foodspring will remain wanted our first debut to be under develop and commercialize Perfect to tables across the world, Pandya a standalone business led by the the care of our own brand, so that Day’s animal-free dairy proteins. and Gandhi said. founders within Mars Edge, a segment of Mars, Incorporated. It will continue to operate out of its head- quarters in Germany. foodspring was founded by entrepreneurs Philipp Schrempp and Tobias Schule with their financial co-founding partner ECONA AG in 2013. The company offers products for consumers with needs around sports performance, healthy living and shape. Its product portfolio includes protein shakes, supplements, snacks and bars, and more. “From day one both foodspring and ourselves could see how our two companies would complement each other to make the most of the fast-growing sports and active market. foodspring had established a strong on-line sales channel and We look at cheese differently. a digital nutrition and wellbeing coach, and we’re the protein inno- vators with a range of high-value, advanced ingredients,” said Kelvin Wickham, Fonterra’s chief operating officer NZMP. “Bot companies could see the growth opportunities within the targeted nutrition market. And that’s exactly what’s happened. Over the past 18 months foodspring has become the fastest growing targeted nutrition brand in Europe,” Wickham continued. “At the same time, the partnership gave us immediate and direct access to the fast-growing consumer sports and active lifestyle segment,” Wickham said. “This continues to be a really attrac- At Deville Technologies we do more than We deliver ultra hygienic food cutting tive market for our dairy protein just provide cheese processing companies solutions that operate effectively and and dairy specialty ingredients and with the perfect shred, dice, shave and grate... efficiently. We partner with our clients to we will keep up the momentum in this market. We are excited we keep the whole solution in mind. custom design the solution that best meets their about continuing our relationship food cutting needs...because we don’t just see cheese, with foodspring and its new own- we see the whole picture. ers Mars, who will remain a valued customer of our NZMP ingredients business.” “The food industry is on a huge FS40 line with powder dispenser, transformational path towards tumble drum and conveyor improving nutrition so people can reach their goals and improve their Come see us at: 1.866.404.4545 www.devilletechnologies.com health,” Schule commented. “And ICTE – April 17-19, 2018 together with Mars Edge we want Milwaukee, WI – Booth 801

For more information, visit www.devilletechnologies.com Ad – Cheese Reporter-REV.indd 1 2018-03-02 9:09 AM Page 12 CHEESE REPORTER July 12, 2019

snacks and sweet biscuits/cookies Yogurt Products are favorites in the UK, Innova Baking Flavors, Unusual Mixes Wow Among Top Three research found. Healthy snacking choices are Judges At Ice Cream Competition Picks For Snacking, seeing the fastest growth rates for ‘Fourth Meal’ Trend NPD overall, led by vegetable- based snacks, with an increasingly —Consum- Arnhem, Netherlands high profile for on-trend ingredi- ers, particularly Millennials, love ents such as more unusual nuts, their snacks, and yogurt products ancient grains, hummus, avocado, are among the top three food items seaweed, hemp and baobab, for they choose for healthy and conve- example. nient “fourth meal” snacking. On the go and lighter options Innova Market Insights here recently reported a 14 percent such as miniatures, bites and puffs average annual growth, from 2014 are also increasingly in evidence, as to 2018, in food and beverage is the search for the right balance launches with a snacking claim. between health and indulgence. For most consumers, snacking is “Fundamental changes in eating patterns largely driven by increas- a part of daily life and always has From left: Kurt Riethman, Sensient Flavors; Logan Cisewski, Kerry; Caroline McQueen, MD been, according to Innova. What ingly busy lifestyles mean that the Enterprise, Inc.; Hanna Clune, Dunkin Brands, Inc.; Kinsey MacDonald, Hudsonville Cream- is changing is the way people think traditional pattern of three meals ery & Ice Cream Co.; Duane Wittlief, Kemps, LLC; Kathie Canning, Dairy Foods; Cary Frye, a day has been giving way over IDFA; Justin Laabs, Tilamook; Brian Krauss, Wells Enterprise, Inc.; and Tammy Shaw, Beyond about snacking and what is consid- Better Foods, LLC. ered to be a snack. some years to a less formal eating This rise in the so-called “fourth pattern,” said Lu Ann Williams, St. Petersburg, FL—Entries fea- Other entries recognized were: meal” culture has increased demand director of innovation at Innova turing bakery flavors like cob- Perry’s Ice Cream, Oats Cream for quick, convenient yet healthy Market Insights. bler and French toast, along with Snickerdoodle; Publix Super solutions for busy consumers. “This is shifting to a more frag- creative combinations of candy, Markets Inc., Irish Creme Salted This is creating opportunities mented and flexible eating style, spices and liqueurs, were show- Caramel; Tillamook County for snacks to fulfill the role of mini encompassing multiple small meals cased here at the National Ice Creamery Association, Sea Salt meals and play a more meaning- or snacks, often eaten alone or on Cream Contest, recently & Honeycomb Toffee Frozen ful role in contributing to refueling the go,” Williams said. Hosted by the International Custard; and Wells Enterprises, and nutritional needs. “As traditional meal times and Dairy Foods Association, the Blue Bunny, Chocolate Donut. In the US, yogurt/drink- occasions disintegrate and people 2019 contest attracted more than The top winner in the most ing yogurt, nuts and seeds, and seek quick, convenient, yet healthy 145 ice cream industry profes- innovative ice cream novelty chocolate are the top three pre- solutions for busy lifestyles,” she sionals and 35 flavor entries over category was Tillamook with ferred snack types. Potato-based said. the two-day event. its Chocolate Mudslide Waffle Bakery additions like cobbler, Cone Sandwich: chocolate ice French toast, cookies and pie cream with dark chocolate fudge crust, along with a mix of sweet chips and a fudge ripple is placed Streamlined membrane and savory like the combination between two chocolate waffle of liqueurs, candy crumbles and cone cookies. e ciency for a variety spices, wowed the judging panel, Wells Enterprises/Blue Bunny said Cary Frye, IDFA senior vice came in second place with PB of processes. president of regulatory affairs. Mallow Mania Loaded Sundae. Awards were presented in Beyond Better Foods, LLC three categories: most innovative took third place in the ice cream flavor, most innovative novelty, novelty category with Dairy Free and most innovative prototype. Monkey Business made with Kemps took first place in the “almond milk”. most innovative ice cream flavor In the most innovative pro- category with Scotcheroo: swirls totype flavor category, first place of peanut butter, oatmeal cookie went to Kerry for its Bramble chunks, and fudge chunks in a Brandy Crumble: A hybrid fro- butterscotch ice cream. zen dessert made with half dairy Second place went to Baskin- and half oat-based dairy alterna- Robbins Dunkin’ Brands Inc. for tive, and a blackberry variegate its Bourbon Street Pecan Pie. infused with brandies. Caloris membrane systems – clean and pure. Hudsonville Ice Cream came Sensient Flavors scored sec- in third place with Hazelnut Cin- ond with Brown Butter Banana You can trust our membrane systems for a variety of namon Bun. French Toast. your treatment processes involving concentration, separation and puri cation. Together with our thermal processing systems, our membrane systems help generate high value for your product and clean water for reuse. And our skidded systems arrive pre- Small-Scale assembled, ready to plug into your operation. How’s that for streamlining your capital and operating costs? Specialty Vats Find out how we can custom design a cost-eective Cheese, Yogurt, Sour Cream and energy-ecient membrane ltration system for your challenges at caloris.com or call 410-822-6900. Kusel Small-Scale Specialty Cheese Vats are specially engineered to maximize productivity, maintain yield and conserve space.

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trade agreements with key trading managing increased risks and Governments Provide Over $700 Billion partners, also covering agri-food should be pursued within a rules- To Support Ag Sector Every Year: OECD trade, in light of stalled negotia- based international trading system. tions at the multilateral level, is The resolution of ongoing trade Paris, France—Over the 2016-18 the domestic market,” the report also a “pragmatic step forward, but disputes would contribute in that period, the agricultural policies of said. “Very little of the current should not replace multilateral regard. 53 countries studied in a new report policy mix targets agriculture pro- ambitions to facilitate reforms of  Redirect support to improve- provided a total of $705 billion per ductivity growth, the sustainable agricultural policies,” the report ments in public services benefit- year to their agricultural sectors, use of natural resources, and farm said. ting producers, consumers and about three-quarters of which was resilience.” Specific recommendations made society at large. This means invest- transferred to individual producers. While future growth in demand in the report include: ing in agricultural innovation sys- About three-quarters of this for high-quality food offers oppor-  Gradually dismantle policies tems focusing public funding in support, $528 billion per year, was tunities for agriculture and the generating market price support, areas that complement private transferred to individual producers, food industry, challenges for meet- starting with the most protected efforts and facilitate collaboration said the report, Agricultural Policy ing this demand sustainably con- markets and most opaque mea- between innovation actors, in hard Monitoring and Evaluation 2019, tinue to be significant, the report sures. Other production-linked and soft infrastructure, and in sci- released by the Organization for continued. Productivity growth and trade-distorting support should ence-based biosecurity systems to Economic Cooperation and Devel- has fallen and remains below also be reduced and eventually ensure human, animal and plant opment (OECD). potential in many countries.While eliminated. health, among others. At the same time, six countries, progress has been made in several  Focus risk-related support  Consider all available eco- in particular Argentina and India, dimensions of agricultural sustain- only on managing catastrophic nomic instruments in pursuit of taxed their ag producers using mea- ability, such as nutrient balances risks for which private solutions environmental and climate change sures that depressed the domestic and emission intensities of green- cannot be developed, working mitigation and adaptation goals. price of some commodities. These house gases, environmental pres- towards clear definitions of the Existing, albeit partial, evidence of implicit taxes amounted to $83 sures remain high and some of the limits of catastrophic risks requir- the environmental performance of billion per year in 2016-18, which positive trends have slowed down. ing public engagement. This would agriculture shows that progress in when deducted from the gross Climate change, and weather- enable well-defined public inter- many countries has slowed or even positive transfers, resulted in net related production shocks, are vention while creating incentives reversed since the mid-2000s. transfers to agricultural producers expected to increase the chal- for privately organized on-farm  Improve the understanding of of $445 billion per year. lenge of improving productivity, and market-based risk manage- the financial and well-being situa- While lowering the level of sustainability, and resilience on ment tools. tion of farm households. Govern- aggregate support, these implicit farms. Increased public and pri- Care should be taken that public ments often lack consistent data taxes also increase overall market vate investment is needed in more support does not crowd out private on the income and wealth status distortions, said the report, which responsive ag innovation systems, solutions based on market tools, of farm households that would presents recent policy develop- in robust inspection services, in and that programs do not over- allow the identification of those in ments and support estimates across rural infrastructure, and in other compensate producers, or lead need. This would allow the design all OECD countries, the European enabling services to the sector. them to adopt risky and unsustain- of more effective and targeted Union (EU) and 12 emerging and While public expenditures able practices. income support measures, includ- developing economies, thus rais- on these general services have Governments should also be ing social and tax policies that are ing the report’s coverage to almost declined overall, relative to the proactive in the collection and not unique to agriculture. three-quarters of global agricul- sectors’ size in OECD and emerg- provision of data facilitating the  Work towards the coherence tural gross value-added. ing economies, increased invest- development of market solutions, of policy packages. Farm house- “Recent progress made by ments in research and innovation and in providing access to skills holds respond to all economic, many OECD countries in reduc- by many countries, and strength- on risk management strategies, in market and policy factors at play. ing agricultural producer support ened efforts to improve rural infra- order to facilitate the development Governments should account and in shifting agricultural policies structure in emerging economies, of relevant private strategies and for this by considering trade-offs towards less distorting and some- are positive developments, accord- market tools. among different policy objectives times more targeted measures has ing to the report.  Increasingly integrate mar- and interactions between policy largely stalled,” the report said. The ambition of many countries kets. This is key to taking advan- areas, and evaluate the effects of Moreover, support to producers to enter into new and deeper free tage of relative advantages and policies ex ante and ex post. remains unequal across countries and commodities. On average, more than 18 percent of gross farm receipts in OECD countries continue to originate from policies, compared to 9 percent on average across the emerging and developing countries covered in the report. However, these averages mask much higher dependence of farm revenues on support in some countries and negative support in several emerging economies, notably in Argentina and India. Overall, close to 70 percent of all transfers to and from agricultural producers continues to origi- TM nate from measures that distort DAIRY SAFE farm business decisions particularly EXCELLENT FLAVOR AND NATURAL strongly, the report said. In many PROTECTION FOR AWARD WINNING CHEEESE countries, a large part of support Even in young cheese, Dairy SafeTM cultures provide excellent ﬂavor to producers still comes from measures that create a gap between development, while also oering protection against defects like domestic and world market prices. late-blowing. The robust protection enables cheese makers to mature “The differences in support their cheese at higher temperatures, shortening aging time and across commodities within coun- reducing the operational costs of producing ﬂavorful cheese. tries, and the co-existence of significant price support for some www.cskfood.com products with depressed prices for others, exacerbate distortions in For more information, visit www.cskfood.com Page 14 CHEESE REPORTER July 12, 2019

Animal care: All of the dairy New Chobani Program Aims To co-op farms from which Chobani New Zealand’s Preserve Dairy’s Long-Term Viability sources are participating in the FARM animal care program and Westland Co-op OKs Norwich, NY—Chobani, LLC, partnership and value between have completed an evaluation. Sale To Subsidiary last week announced a program consumers, farms and brands with Local sourcing: Since day one, aimed at supporting the economic, a Fair Trade USA standard for Chobani has been committed to Of China’s Yili Group environmental, and social impacts dairy,” said Paul Rice, CEO, Fair sourcing milk from local farms sur- Hokitika, New Zealand— of its number one ingredient: fresh Trade USA. rounding its plants in New York Shareholders of Westland Coop- milk from local farms. Milk Matters has six pillars: and Idaho. As a member of the erative Dairy Company Limited The Milk Matters™ program Worker well-being: From safety New York State Grown & Certi- announced late last week that will encompass Chobani’s com- and training programs to wage fied and Idaho Preferred programs, a scheme of arrangement under mitment to its milkshed as well as standards to a support hotline for local sourcing is a way to support which shares in Westland are to efforts to support greater transpar- outlier situations, Chobani will agricultural communities, while be acquired by Jingang, a wholly ency across dairy farms. work with dairy co-ops, farmers ensuring Chobani’s products are as owned subsidiary of Inner Mon- The program will include coop- and farm workers to create a sys- fresh as possible and the company’s golia Yili Industrial Group Co., erative partners, dairy farms, and tem where the dairy industry has carbon footprint is minimized. Ltd. third parties such as Fair Trade the support it deserves. To achieve Investing in dairy communities: “When Westland’s board of USA, the World Wildlife Fund this, Chobani is collaborating Chobani has partnered with the directors initiated the strate- (WWF), National Milk Producers with Fair Trade USA to explore a Community Foundation for South gic review process, “we did so Federation (NMPF), Cornell Uni- first-of-its-kind certification stan- Central New York and the Idaho with the full understanding that versity, state programs and commu- dard for US dairy that protects Community Foundation with a all Westland farming families nity foundations in New York and and empowers dairy workers and plan to invest $2 million in grants needed to have a competitive Idaho to validate the continued provides meaningful premiums to over the next decade to fuel big milk payout. We know this has progress. Milk Matters is working benefit farmers and farm workers ideas from local community groups, been, and is, a driving need for towards 100 percent implementa- alike. expand econmic opportunity and all shareholders,” said Pete Mor- tion by 2025. Environmental stewardship: promote entrepreneurship. And rison, Westland’s chairman. “Dairy farms are the backbone Chobani is collaborating with the through the Chobani Scholars “This proposed transaction of the communities we call home, WWF and NMPF’s Farmers Assur- program, it is funding scholarships will secure a competitive milk but the current model is broken and ing Responsible Management at Cornell University and the payout for at least 10 seasons for it’s leaving consumers questioning (FARM) to reduce the company’s University of Idaho for students of all of our existing shareholders everything, including the treatment carbon footprint and help farms do dairy farming families looking to and ensures that all of our exist- of animals, farm workers, and the the same. These partners will mea- pursue a dairy science degree. ing shareholders’ milk would be land itself,” said Hamdi Ulukaya, sure greenhouse gas emissions and Freedom and flexibility for dairy picked up for 10 years,” Morrison Chobani’s founder and CEO. energy use on dairy farms within farms: Chobani is giving farmers added. The milk supply commit- “This is a big move for one of Chobani’s supply chain to identify the freedom to farm as they know ment ensures a minimum price the important sectors of agriculture potential efficiency gains and cost best. The company is not man- for 10 seasons of at least the Fon- in the US: creating shared trust, savings for farmers. dating the use of non-GMO feed, terra farmgate milk price. a practice that places a financial “The board recognizes that burden on farms without enough the vote today is an important  demonstrated value to people milestone in Westland’s history.  or the planet. Also, Chobani While Westland will cease to be has partnered with the Cornell  a cooperative, the board believes PRO-DAIRY program and New  the proposed transaction repre- York state’s Dairy Acceleration sents the best available outcome Quality Stainless Program to help farms with less for shareholders,” Morrison Machines than 300 cows receive funding for LLC Custom added. PhilquiPhilquipp & Fabricating small projects to address business Jingang is a wholly owned sub- 5241 Harding Avenue, Plover, WI 54467 needs. sidiary of Yili, which has a strat- TOLL FREE 1-866-841-7704 or 715-295-0220 For more information about Fax 715-295-0226 www.philquip.com egy to grow both its domestic Chobani, visit www.chobani.com. and global businesses. Yili is the largest dairy producer in China and Asia, according to Westland. Yili products are sold under more than 1,000 brands and it owns more than 130 branches or subsidiaries. “Yili already has a proven presence in New Zealand. It acquired Oceania Dairy Group in 2013. It  has since invested approximately  $660 million in establishing milk  powder, infant formula and UHT  production lines for Oceania,” Morrison noted. Quality Stainless Machines “We are deeply honored that LLC Custom Westland shareholders have Philquip & Fabricating shown such strong faith in Yili 5241 Harding Avenue, Plover, WI 54467 to become the custodians of one TOLL FREE 1-866-841-7704 or 715-295-0220 Fax 715-295-0226 www.philquip.com of New Zealand’s most trusted brands,” said Jianqiu Zhang, chief executive officer of the Yili Group. The scheme of arrangement remains conditional on certain conditions, including obtaining regulatory consent from New Zealand’s Overseas Investment Office and receiving approval For more information, visit www.sanchelimaint.com from the High Court. July 12, 2019 CHEESE REPORTER Page 15

to Hopfer, whose research group science. She tested not only con- Milk Found To Be Adding Vanilla To has been experimenting with these gruant taste-aroma combinations Best Drink To Reduce Milk Makes It Seem “cross-modal interactions” in food but incongruent combinations as since she came to Penn State three well. Burn From Hot Sweeter, Penn State years ago. Her goal is to see them It turned out that even a beef actually incorporated into foods. odor in milk slightly enhanced Peppers Researchers Find In a blind test that provided new sweetness for study participants. University Park, PA—Consum- University Park, PA—Adding insights into taste enhancement Given widespread concerns ers who order their Buffalo wings vanilla to sweetened milk makes by an aroma, participants who did about sugar intake and health, especially spicy and sometimes consumers think the beverage is not know vanilla had been added manufacturers are reformulat- find them to be too “hot” should sweeter, allowing the amount of to the milk consistently indicated ing their products to help address choose milk to reduce the burn, added sugar to be reduced, accord- that samples with vanilla were consumer demand, Wang noted. according to Penn State research- ing to Penn State researchers, who significantly sweeter than their She believes the findings of the ers. will use the concept to develop a added sugar concentrations could research, published recently in The research originated as an reduced-sugar chocolate milk for explain. Food Quality and Preference, offer effort by the Sensory Evaluation the National School Lunch Pro- The subjects’ responses indi- them a workable option to reduce Center in Penn State’s College gram. cate that with the addition of added sugar in their products and of Agricultural Sciences to iden- “We are utilizing a learned asso- vanilla, the added sugar content retain the sweetness consumers tify a beverage to clear the palates ciation between an odor and a taste in flavored milk could potentially demand. of participants in tasting studies that will allow us to reduce the be reduced by 20 to 50 percent, The study was novel in that it involving capsaicin. added sugar content,” said Helene suggested lead researcher Gloria did not ask participants to rate An extract from chili peppers, Hopfer, assistant food science pro- Wang, and people should not be individual attributes of the milk capsaicin is considered an irritant fessor at Penn State. “Reducing able to perceive the beverage as such as sweetness, intensity of because it causes warming and added sugar in products, just like less sweet. vanilla odor or milk taste. Instead, burning sensations. reducing fat and salt, is the holy “Wang, now an associate scien- participants took a more holistic “We were interested in giving grail of food science.” tist in product development with approach and simply selected the capsaicin solutions to many test The idea that congruent or Leprino Foods, conducted the best match for the vanilla milk participants and we were con- harmonious odors enhance cer- research at Penn State as part of from four differently sweetened cerned with the lingering burn tain tastes is not new, according her master’s degree thesis in food milk choices. at the end of the experiment,” explained center director John Hayes, associate professor of food science. Widespread consumption of chili peppers and foods such as chicken wings spiced with siracha and hot sauce show that many people enjoy this burn, Hayes noted. EnsureEnsure youryour But these sensations can also be overwhelming. While folklore exists on the abil- cheesecheese isis ity of specific beverages to mitigate capsaicin burn, quantitative data to support these claims are lack- labellabel friendlyfriendly ing. The researchers looked at five beverages and involved 72 people. withwith Participants drank spicy Bloody Mary mix containing capsaicin. Immediately after swallowing, they rated the initial burn. Then, in subsequent separate trials, they drank purified water, cola, cherry-flavored Kool-Aid, seltzer water, non-alcoholic beer, skim milk and whole milk. Partici- pants continued to rate perceived A new innovation in anti-cake technology for shredded, cubed burn every 10 seconds for two min- and crumbled cheeses. utes. There were eight trials. ® The initial burn of the spicy FloAm Dairy improves the ef ciency of your cheese production and Bloody Mary mix was, on average, increases shelf life of your products with the added bene ts of: rated below “strong” but above • Natural, dairy-based, non-GMO, label-friendly ingredients “moderate” by participants and continued to decay over the two • Excellent ow and low-dust characteristics minutes of the tests to a mean just • Non-browning in oven melt performance above “weak,” according to lead researcher Alissa Nolden. • Flexible application levels tailored to meet unique quality All beverages reduced the burn, needs vs. limits of traditional anti-cake but the largest reductions in burn • Broad functional capabilities – anti-mold, oxygen scavenging were observed for whole milk, skim and customized blends milk and Kool-Aid. More work is needed to determine how these beverages reduce ® burn, noted Nolden, a doctoral stu- Keep your label clean and your products fresh with FloAm Dairy . dent in food science at Penn State Contact your Allied Blending representative today. when she conducted the research, and now an assistant professor in the department of food science at the University of Massachusetts. Level 2 Certified Nolden suspects it is related to how capsaicin reacts in the pres- ©2018 Allied Blending LP 1-800-758-4080 • www.alliedblending.com All rights reserved. ence of fat, protein and sugar. For more information, visit www.alliedblending.com Page 16 CHEESE REPORTER July 12, 2019

In 2019, this award went to Joe Nominations For and John Koss of Koss Industrial PERSONNEL PAUL MIHELICH has been appointed vice president of stra- and Ron Kremer of Kerry. MIQUELA HANSELMAN has WCMA Recognition tegic accounts and installations The WCMA Vanguard Award joined the National Milk Pro- at Wildeck, Inc. In his new Awards Due Aug. 16 is reserved for cheese makers or ducers Federation (NMPF) as role, Mihelich will be responsi- Madison—The Wisconsin Cheese cheese manufacturing employees manager of regulatory affairs, ble for managing the company’s Makers Association (WCMA) who are considered ground-break- responsible for assisting NMPF relationships with key accounts issued a call for nominations of ers for their innovations in day-to- in dealing with the US FDA, and ensuring the installation of individuals for formal recognition day dairy operations. USDA and the Environmental Wildeck’s products. He began his for their outstanding contributions In 2019, this award was pre- Protection Agency. In her new career with Wildeck as a sales rep- to the dairy processing industry. sented to Dale Baumgartner of role, Hanselman will focus on raw resentative and in 2017, was pro- The nomination deadline is Tillamook Creamery and Terry milk legislation and regulation, moted to vice president of sales August 16 and includes four rec- Lensmire of Agropur. the National Council on Inter- and marketing for the company’s ognition awards. The WCMA Babcock Award state Milk Shipments, food safety, Waukesha, WI, and Goodyear, The WCMA Cheese Industry recognizes the contributions of labeling issues, nutrition policy, AZ operations. DAVID MILNER Champion award is given to lead- those in education or affiliate orga- and environmental issues includ- has joined Wildeck as the new ers who, through their everyday nizations to partner with cheese ing air emissions. TONY RICE vice president of sales and mar- business decisions, have created makers in the pursuit of dairy joins NMPF as the new trade keting. Milner brings with him tremendous opportunity for others industry innovation and excel- policy coordinator, working in over 20 years of experience in and spurred industry growth. lence. concert with the US Dairy Export product development and mar- People to be considered are the In 2019, WCMA honored Council (USDEC). Rice will lead keting strategy. CEOs, directors, presidents, and Rusty Bishop of Schreiber Foods NMPF’s trade policy team. vice presidents of their companies and John Lucey of the Center for who may not have cheesemaking Dairy Research with this award. JENNIFER MARTIN has joined TERRI MOORE has been hired obligations but direct resources. All nominations will be consid- the International Dairy Foods by the American Farm Bureau In 2019, Dave Fuhrmann of ered by the members of the WCMA Association (IDFA) in the new Federation (AFBF) as its new Foremost Farms USA and Lou Recognition Committee in Sep- role of director, external and vice president of communica- Gentine of Sargento Foods were tember with final awards deter- member communications. Martin tions. Moore most recently served honored with this award. minations made by the WCMA comes to IDFA from The Fertilizer as vice president of Look East, a The WCMA Distinguished board of directors in December. Institute (TFI) where she man- communications consulting firm Service Award recognizes supplier WCMA members may submit aged communications for TFI’s focused on food and agriculture- partner members who have played nominations online at www.WisCh- nutrient stewardship and security related trust-building research a significant role in building the eeseMakers.org or by contacting and safety programs. MICHAEL and engagement strategies. She success of the US dairy industry, Rebekah Sweeney at (608) 286- GOODIN has been tapped as also serves as part of the Center contributing innovations in dairy 1001 or via email: rsweeney@wisch- IDFA’s new manager of multime- for Food Integrity’s management manufacturing. eesemakers.org. dia and digital content. Goodin team. Prior to these roles, Moore began his career in media pro- was deputy director of commu- duction as a producer and editor. nications at the White House, Both new positions were created director of communications at to promote and extend IDFA’s USDA, and chief of staff to US communications activities. Senator Mike Johanns.

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Dairy CPI Fell 0.2% In June; Retail Average Retail Prices Cheddar Price Declined, Milk Increased Cheddar & Whole Milk: April 2009 – 2019 Price per pound/ gallon $6.00 Washington—The Consumer South: $5.36 per pound, up Price Index (CPI) for cheese and more than 12 cents from May and $5.50 related products was 217.433 in up more than 18 cents from June $5.00 June (1982-84=100), down 0.2 2018. percent from May but 0.6 percent West: $5.16 per pound, down $4.50 higher than in June 2018, the US almost 18 cents from May but up $4.00 Bureau of Labor Statistics (BLS) more than 28 cents from June reported Thursday. 2018. $3.50 During the first half of 2019, The average retail price for $3.00 the dairy CPI ranged from a low pound of American processed Milk Cheddar of 216.595 in February to a high cheese in June was $3.84, down $2.50 09 10 11 12 13 14 15 16 17 18 19 of 217.84 in May. The dairy CPI more than two cents from May hasn’t been above 220 since Febru- and down more than 11 cents from ary 2017. June 2018. The average retail price Midwest: $2.22 per gallon, up down 2.8 percent from May and June’s CPI for all items was for American processed cheese has almost two cents from May and up 1.1 percent lower than in June 256.143, up from May and 1.6 been under $4.00 per pound every more than nine cents from June 2018. percent higher than in June 2018. month so far this year. 2018. That was the lowest level for June’s CPI for food at home was South: $3.32 per gallon, up the ice cream CPI since July 2016, 241.4, down 0.3 percent from May Milk Prices Increase more than 14 cents from May and when it was 213.181. but up 0.9 percent from June 2018. June’s CPI for whole milk was up more than 23 from June 2018. The average retail price for a June’s CPI for cheese and related 199.557, up 1 percent from May West: $3.06 per gallon, up more half-gallon of regular ice cream in products was 228.269, up 0.6 from and 2.7 percent higher than in than seven cents from May and June was $4.63, down almost 22 May but down 1.2 percent from June 2018. The whole milk CPI up more than 14 cents from June cents from May and down more June 2018. That was the highest has now been below 200 for 23 2018. than two cents from June 2018. level for the cheese CPI since last consecutive months. June’s CPI for butter was That was the lowest average retail September, when it was 229.156. The CPI for “milk” was 139.485 244.773, down 1.6 percent from price for a half-gallon of regular ice The average price for a pound in June (December 1997=100), May but up 0.8 percent from June cream since May 2018, when the of natural Cheddar cheese in June up 0.1 percent from May and 1.9 2018. The butter CPI hasn’t been average price was $4.59 per gallon. was $5.254, down more than seven percent higher than in June 2018. below 240 since last December, June’s CPI for other dairy and cents from May but up two cents June’s CPI for milk other than when it was 234.725. Its high for related products was 149.544 from June 2018. whole was 144.136, down 0.3 per- this year was 253.069 in March. (December 1997=100), down 0.1 During the first half of this year, cent from May but up 1.9 percent June’s CPI for ice cream and percent from May but 2.4 percent the average retail Cheddar price from June 2018. related products was 214.387, higher than in June 2018. ranged from a low of $5.19 per The average retail price for a pound in March to a high of $5.33 gallon of whole milk in June was per pound in May. $3.05, up more than nine cents Regional retail Cheddar cheese from May and up almost 18 cents prices in June, with comparisons to from June 2018. That was the first a month earlier and a year earlier, time the average retail price for were as follows: a gallon of whole milk was above Northeast: $5.99 per pound, $3.00 per gallon since December up almost 14 cents from May but 2017. down more than seven cents from Average retail whole milk June 2018. prices in June in the three regions Midwest: $4.87 per pound, reported by the BLS, with com- down 27 cents from May and down parisons to a month earlier and a almost 61 cents from June 2018. year earlier, were as follows: At H&C we are constantly developing solutions to enhance eﬃciency Lead them to safety. and drive growth Honeywell can help.

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bers who require assistance for the Over Half Of Its Happy Meals In Now Include ADPI Welcomes production and quality control of Milk, Water Or Juice, McDonald’s Says Clark, Tjornehoj To anhydrous milkfat, churned milkfat, butteroil, various types of but- Chicago—A majority of McDon- the percentage of Happy Meal cus- Center Of Excellence ter, and cream and Neufchatel ald’s 20 major markets, including tomers served milk, water or juice Elmhurst, IL—The American cheese. the US, have met the company’s as their beverage choice increased Dairy Products Institute (ADPI) is The American Dairy Products 2013 commitments to promote 12 percentage points (from 36 welcoming two additional industry Institute Center of Excellence is lowfat dairy, fruit, vegetables and percent to 48 percent) between professionals to the ADPI Center a network of experienced dairy water, according to a five-year September 2013 and September of Excellence. industry professionals with the progress report released recently by 2018. Joining the Center of Excel- expertise to answer questions and McDonald’s and the Alliance for a “We’re making real progress lence for 2019-2020 are Dr. David assist ADPI members on a wide Healthier Generation. offering and promoting balanced Clark and Dean Tjornehoj. range of topics. In 2013, McDonald’s began choices in Happy Meals around Clark has over 30 years of The Center provides ADPI working with the Alliance for a the world,” said Julia Braun, head experience in the dairy indus- members with an easy and eco- Healthier Generation to develop of global nutrition at McDonald’s try, and previously held senior nomical way to gain access to a global plan for 20 major markets Corporation. and executive positions at DMV industry expert capable of address- to increase customers’ access to The company has served over and FrieslandCampina. He is the ing dairy-related questions or con- lowfat dairy, fruit, vegetables and 6.4 billion lowfat dairy, fruit, veg- author of over 100 peer-reviewed cerns they might have. water by 2020. etable and water items in Happy publications on dairy ingredients, The American Dairy Products The company retained Key- Meals since September 2013 across and has worked with clients in the Institute Center of Excellence bridge, a public policy economic the 20 major markets. US, Europe and Asia. professionals are available to help consulting firm, to verify progress “This work measures and dem- Clark founded the consultancy ADPI members, providing free on these commitments. onstrates the positive impact company, Bovina Mountain Con- consultations (up to two hours per McDonald’s US progress high- we’re having as we build a better sulting LLC, an independent con- topic) on a confidential basis. lights include: McDonald’s and use our scale as a sultancy business specializing in They also share their expertise —McDonald’s USA reports a 15 force for good,” Braun said. the dairy, food and nutraceutical/ throughout the year by participat- percentage point increase (from 37 “These results show how com- dietary supplement industries. ing in ADPI’s events, i.e., seminars, percent to 52 percent) in Happy bining the scale and influence of He can assist ADPI members conferences, symposia, webinars Meals served with milk, water or corporations with the expertise of with projects that involve strat- and educational programs, ADPI juice between September 2013 and national public health organiza- egy development, regulatory sup- stated. September 2018. tions can be a strategy for trans- port (such as GRAS notification), “We are extremely pleased to With this shift, more than half formational change,” said Kathy new product development, infant welcome these two new industry of Happy Meals in the US now Higgins, chief executive officer at and medical nutrition formulation professionals to the ADPI Center include milk, water or juice as the the Alliance for a Healthier Gen- support and market research assis- of Excellence,” said Blake Ander- beverage choice. eration. tance. son, ADPI’s president and CEO. —McDonald’s USA has served “We appreciate McDonald’s for Tjornehoj, a microbiologist, “Their addition to the program over 3.4 billion lowfat dairy, fruit taking steps to create and promote is newly retired from California reflects ADPI’s commitment to and water items in Happy Meals fruit, vegetable, lowfat dairy and Dairies Inc. (CDI), where he was provide our members with reli- since 2013. water options for youth and their responsible for compliance with able, meaningful and useful infor- Koss_Equipment.pdf 5 6/6/19 2:21 PM Across the 20 major markets, families,” Higgins added. regulatory and customer require- mation.” ments, quality control and qual- Current Center of Excellence ity assurance programs across six professionals include Veronique manufacturing plants. Lagrange, chair; K.J. Burrington, Custom Stainless Steel Tjornehoj can provide tech- Michael Culhane, Mike McCully, nical support on microbiological Dan Meyer, Phil Plourd, Geoffrey and chemistry testing and issues. W. Smithers, Jim Sullivan, Phil Processing Equipment In addition to his expertise on Tong and P.C. Vasavada. powdered ingredients, he will also For more information, visit support the needs of ADPI mem- ADPI’s website, at www.adpi.org. CIP Systems

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Second place: Pearl Valley Cheese, Rural Transportation System Needs Repairs Pearl Valley Tops Lacey Baby Swiss To Keep Ag Products Moving, Report Finds Ohio State Fair Third place: Pearl Valley Cheese, Lacey Swiss Washington—America’s rural “Farmers and ranchers depend Cheese Contest With transportation system is in need on rural roads, highways and Open Class Pearl Valley Cheese, of repairs and modernization to bridges for daily life and to move Swiss Entry First place: Jumpin’ Jack support economic growth in the their products to market,” said Fresno, OH—Pearl Valley Cheese Guggisberg Cheese, nation’s heartland, which is a criti- Zippy Duvall, president of the CompanyFresno, OH, earned the Second place: Maasdam cal source of food, according to a American Farm Bureau Federa- Grand Champion rosette here Third place: Black Radish Cream- report released TRIP, a national tion. “Securing the appropriate Wednesday in the Ohio State Fair ery, Columbus, Raclette transportation research nonprofit. resources at the local, state and Cheese Competition here with a Other cheese was entered from The report, Rural Connections: federal levels will allow for the Swiss cheese entry. Guggisberg Cheese, Black Pepper Challenges and Opportunities in improvements needed to provide Guggisberg Cheese, Millersburg, Butter Cheese and Red Pepper America’s Heartland, evaluates the a rural transportation system that OH, received Reserve Champion Butter Cheese; Pearl Valley, Mar- safety and condition of rural roads will keep goods moving, American honors for a Maasdam entry. ble and Smoked Swiss; and Black and bridges and finds that the rural agriculture competitive and rural This is the second of three con- Radish Creamery, Charlie’s Cloth- transportation system is in need Americans safe.” tests held throughout the year to bound Cheddar. of immediate improvements to America’s rural transportation determine the Grand Champion and Reserve Champion cheese address deficient roads and bridges, system provides the first and last Soft & Spreadable high crash rates, and inadequate link in the supply chain from farm makers for 2019. First place: Black Radish Cream- connectivity and capacity. to market, connects manufactur- Top three winners in all four ery, Mini Brie Some 15 percent of US rural ers to their customers, supports contest classes that entries include: Judges for the Ohio State Fair roads are rated in poor condition, the tourism industry, and enables Rindless Swiss Cheese Contest were cheese buy- while 21 percent are in mediocre the production of food, fiber and First place: Pearl Valley Cheese, ers Kevin Watts and Paul Cher- condition, 17 percent are in fair energy, TRIPS noted. Fresno venak; former cheese maker Mike condition, and the remaining 47 Trucks provide the major- Second place: Guggisberg Cheese, Felton; and cheese technician Dan percent are in good condition. ity of transportation for agricul- Millersburg Wilson. Nine percent of the nation’s tural products, accounting for Third: Broad Run Cheese, Dover All cheese was judged Grade A, rural bridges are rated in poor/ 47 percent of total ton miles of organizers announced, and cheese structurally deficient condition, travel compared to 37 percent by Other Swiss Types entries will be on display at the meaning there is significant dete- rail and 8 percent by barge, the First place: Pearl Valley Cheese, Ohio State Fair in Columbus July rioration to the major components report pointed out. Transportation Gouda 24-Aug. 4, 2019. of the bridge. Poor/structurally is becoming an even more criti- deficient bridges are often posted cal segment of the food distribu- for lower weight or closed to traf- tion network; while food demand fic, restricting or redirecting large is concentrated mostly in urban vehicles, including agricultural areas, food distribution is the most equipment and commercial trucks. dispersed segment of the economy.

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CDI And DFA Andrei Mikhalevsky, CDI’s presi- Final FDA Guidance engaged only in specified low-risk (Continued from p. 1) dent and CEO. “We would also activity/food combinations. like to help preserve the exist- Details How To Second, small businesses have its consolidated businesses, which ing processing asset base in the later compliance dates for these represent approximately 30 per- state.” Determine Number rules than do larger businesses. cent of the total milk production “Our organizations have worked Of Employees For According to FDA’s final guid- in the US. closely over the past decade as ance, a “small business” means a DFA’s Western Area, which the dairy industry in California, ‘Small Business’ business (including any subsidiaries includes the state of California the US and the world has become Silver Spring, MD—The US Food or affiliates) employing fewer than as well as increasingly and Drug Administration (FDA) 500 full-time equivalent employ- Nevada and dynamic,” recently announced the availabil- ees. The limit of 500 employees said Dennis includes all employees of the most of Ari- “there was a mutual ity of a final guidance for indus- Rodenbaugh, business and is not limited to the zona, has 280 desire to reduce supply try describing the agency’s current member dairy executive employees at a particular facility. thinking on how to determine the farms that chain costs and create vice president A “full-time equivalent number of employees for purposes produce 7.3 additional value and of DFA and employee” (FTE) is a term used to of the “small business” definition billion pounds stability for our customers.” president of represent the number of employees of milk annu- council oper- in certain FDA rules. of a business entity for the purpose ally. — Andrei Mikhalevsky, CDI ations. The guidance concerns two reg- of determining whether the busi- CDI and “We have ulations that FDA has established ness qualifies as a small business. DFA were similar goals as part of its implementation of The number of FTEs is determined two of the three dairy co-ops and see tremendous opportunities the Food Safety Modernization by dividing the total number (Land O’Lakes was the third) that with our two cooperatives working Act (FSMA), specifically, the cur- of hours of salary or wages paid petitioned the US Department of together in an increasingly close rent good manufacturing practice directly to employees of the busi- Agriculture (USDA) in February partnership,” Rodenbaugh added. (CGMP), hazard analysis, and ness entity and of all of its affiliates 2015 to hold a hearing to pro- Marketing agencies in common risk-based preventive controls for and subsidiaries by the number of mulgate a federal milk marketing can be incorporated as cooperatives human and animal food rules. hours of work in one year, 2,080. order for the state of California. or non-cooperatives, according to Under these two rules, whether For the purpose of the small That new California federal order a 1994 USDA report. As coopera- a business is a “small business” has business calculation, FDA consid- became effective late last year. tives, they a federated type, with two main implications. First, cer- ers a business to consist of the legal “Given the significant market- organizations rather than farmers tain small businesses (i.e., “farm entity that the relevant facility is ing and regulatory challenges that as direct members. The purposes mixed-type facilities,” which are part of, along with any “affiliates” we’ve seen in California over the of MACs are, in most cases, coor- establishments that are farms, but and “subsidiaries” determined from last few years, there was a mutual dinating sales of member products also conduct activities outside the the perspective of the relevant desire to reduce supply chain costs and extending the marketing pro- farm definition that require the facility. Therefore, depending on and create additional value and grams that member co-ops have establishments to be registered) the structure of a business, the stability for our customers,” said developed. are exempt from the human food businerss size calculation may not preventive controls requirements be the same for all of its facilities. and the animal food preventive For more information, visit USDA News controls requirements if they are www.fda.gov/foodguidances. A New Product that is officially accepted* for use in Dairy Plants inspected by the United States Department of Agriculture (USDA) Powder Processing under the Dairy Plant Survey Program. Evaporator and Spray Dryer Systems *USDA Project Number 13377 for Safe, Efficient, Sanitary Processing TC Strainer Barrier TC Elastom er Gasket TC Strainer Gasket Engineering solutions and exceptional technical support is what we provide when it comes to your evaporator and spray dryer system.

EDT innovative technologies -

Elastomer ID designed to handle today’s process No perforations in this area requirements for safe, efficient, The Strainer Barrier can be, but is not limited to, Stainless Steel Grade 304, 304L, 316 and 316L and is sanitary processing. bonded to an elastomer to form a Strainer Gasket. The Strainer Barrier consists of a circular disk with a plurality of perforations of various diameters** in a specific pattern that are completely within a specific sized circle that is concentric to the OD of the disk. The circle diameter is less than that of the ID of the elastomer  Whey and Whey Permeate gasket portion so there can be no chance of the elastomer migrating into any particular perforation during  Lactose the molding process which would create crevices. In addition, there are a plurality of specific sized holes in a radial pattern between the OD of the disk and the cylindrical ID of the elastomer gasket. In the molding  WPC process, the elastomer will fill in these holes from both sides yielding a much more secure adhesion between  Milk Powders the strainer disk and the elastomer gasket portion. **The holes could also be oblong, rectangular or square in  various dimensions. Fluoropolymer is also available, e.g. PTFE, Strainer Barrier/Gasket and any other 3-A Cheese Powders Strainer Barrier/Gasket Material. TC = Tri-Clover®, formerly Tri-Clamp®, Style shown. BSI, DIN & ISO Styles  Infant Formula are also available.

Product Materials are compliant with the following applicable 3-A Sanitary Standards: • 42-02 In-Line Strainers for Milk and Milk Products. • 63-03 Sanitary Fittings. • 18-03 Multiple Use Rubber and Rubber-Like Materials. • 20-17, currently 20-27, Multiple-Use Plastic Materials. Product Materials are also compliant with the following applicable Standards: • ASTM A240/A240M, Stainless Steel AISI 300 Series. • US FDA 21CFR177.2600, Rubber Articles Intended for Repeated Use. • US FDA 21CFR177.1550, Fluoropolymers For Use as Basic Components of Single and Repeated Use. • USP Class VI Tests, 2004: USP 27, NF 22, 2004, <88> Biological Reactivity, In Vivo. • USP MEM Elution Cytotoxicity, 2004: USP 27, NF 22, 2004, <87> Biological Reactivity, In Vitro. • EU 1935/2004(3)EC, Food Contact Regulations. • EU 2011/65/EC, ReCast of EU 2002/95/EC RoHS Directive

Patent Pending: B1527.101.101, August 17, 2016 Licenses issued by the Provisional Patent Holder for the manufacturing, marketing and sale of the Strainer Barrier and Strainer Gasket to: Evaporator Dryer Technologies, Inc. G-M-I, Inc.® 715.796.2313 • 715.796.2378 - FAX 4822 East 355th Street, Willoughby, Ohio 44094-4634 USA E-mail: [email protected] • 1805 Ridgeway Street • Hammond, WI 54015 Fon/Fax: 440-953-8811/-9631 www.evapdryertech.com Email: [email protected] • Url: www.gmigaskets.com Rev 20161128

For more information, visit www.gmigaskets.com For more information, visit www.evapdryertech.com July 12, 2019 CHEESE REPORTER Page 21

association between the intake of ed in the review. Adequate Dairy Intake At Various Life total milk products, lowfat dairy To reduce coronary artery dis- Stages Helps Prevent Chronic Diseases products, cheeses, and fermented ease, dietary guidelines generally milk products and the risk of stroke; recommend reducing the intake of Granada, Spain—Adequate con- dairy intake and cardiovascular between the intake of lowfat dairy saturated fatty acids (SFAs). But sumption of milk and dairy prod- disease (CVD) and related inter- and milk and the risk of hyperten- recent studies have questioned the ucts at different life stages can mediate outcomes. sion; between total dairy and milk role of SFAs in CVD. help prevent and/or control vari- There is suggestion that dairy consumption and the risk of meta- Indeed, the consumption of ous chronic diseases, according was inversely associated with bolic syndrome; and between the milk and dairy products has been to a review published recently in stroke incidence, and yogurt con- total dairy and cheese intake and inversely related to the incidence Advances in Nutrition. sumption was associated with the risk of type 2 diabetes. of CVDs in observational studies, The review was conducted by lower risk of type 2 diabetes. Odd- Data show that the consumption and dairy product consumption scientists from different Spanish, chain fatty acids found primarily in of different forms of dairy products has been as been suggested to ame- European, and American univer- dairy appear to be inversely asso- is associated in either a favorable liorate characteristics of metabolic sities, and coordinated by Prof. ciated with cardiometabolic risk, or neutral way with clinical aspects syndrome, including some risk Angel Gil of the University of although causation is uncertain. related to cardiovascular health. factors such as insulin resistance, Granada and Prof. Rosa M. Ortega There is “high-quality evidence” Dairy products are an important increased blood pressure, dyslip- of the Complutense University of supporting an inverse association source of many nutrients, but they idemia, and abdominal obesity, Madrid. between the total intake of dairy can be high in saturated fats, and which together markedly increase Most dietary guidelines regard- products and the risk of hyperten- most dietary guidelines recom- the risk of diabetes and CVD. ing the consumption of milk and sion, and between the intake of mend the consumption of lowfat Considering numerous studies as dairy products recommend two to lowfat dairy products and yogurt dairy, the review noted. However, well as the current recommenda- four servings per day depending on and the risk of type 2 diabetes. the scientific rationale behind tions, further research is “urgently age and circumstances. However, There is also evidence of moder- this recommendation is still under needed” to compare the impact, the average dairy product intake of ate quality suggesting an inverse debate, an issue that is also address- according to the review. most groups, classified by both age and sex, is well below recommendations, the review noted. This low dairy intake is associated with lower intakes than recommended for calcium and other nutrients in a high percentage of individuals in Western countries. Dairy products contain numerous nutrients and contribute significantly to meet the nutritional Your Business Creates Unique Challenges requirements for protein, calcium, magnesium, phosphorus, potas- sium, zinc, selenium, vitamin A, ...We Provide Solutions riboflavin, vitamin B-12, and pan- tothenic acid. This contribution of nutrients is difficult to obtain in diets that suppress dairy products (e.g., vegan diets) or that restrict dairy products for any reason. “Many of the beneficial effects of milk and dairy products are likely due to interactions between the nutrients and not only to the action of each of these nutrients separately,” the review stated. Currently, there is growing skep- ticism in the population about the DR Tech EZ Whey Belt DR Tech EZ Whey Waterless Cookers beneficial health effects of dairy Vertical Filler products, which translates into an increased intake of drinks derived from soy, rice, almonds, oats and other plants. Generally, these Throughout the world, DR Tech’s dairy processing equipment has been used by a host of drinks “are of low nutritional den- diff erent businesses, from large to small, each with diff erent needs. sity, contain proteins of relatively lower biological value, and have a low micronutrient content and With years of technical expertise, D.R. Tech works closely with you to engineer solutions; large amounts of added sugars,” the designing and building the equipment customers need in accordance with their supplied review noted. specifi cations. From a nutritional perspective, the review pointed out that • Conveyors • Stainless Steel Tanks plant-based drinks and cow’s milk • EZ Whey draining and matting belts • Hard & Semi-Hard Pre-Presses are “totally different foods” and, consequently, the established rec- • Cheese Dicers • Waterless Cheese Cookers ommendations for dairy products • Carousel Vacuum Presses • Rotator Line Systems “cannot be extrapolated to plant- • Form Washing Solutions • Automated Brine Systems. based beverages.” Although there are studies that question the health benefits DR Tech, Inc. 1-800-815-6761  Fax: 715-463-5218 of dairy products, numerous studies report health benefits associ- www.drtechinc.com  e: [email protected] ated with dairy consumption, the review pointed out. From Design...To Production...To Installation...Through Operation Most meta-analyses report no or a weak inverse association between For more information, visit www.drtechinc.com Page 22 CHEESE REPORTER July 12, 2019

growth strategy focused on part- rently leverages capabilities and Land O’Lakes, nering with locally successful com- proprietary products of its sub- Darigold Opens Sales Agrifirm To Set Up panies and working together to sidiary businesses Purina Animal Office In Dubai drive market expansion,” said Jerry Animal Nutrition and WinField Seattle, WA—Darigold Inc. this Dairy Animal Feed Kaminski, executive vice president United crop protection to help week announced the opening of its and chief operating officer of Land improve dairy productivity in office in Dubai through the addi- Venture In China O’Lakes. China. Land O’Lakes also operates tion of an in-market sales leader: Tianjin, China—Land O’Lakes The new joint venture will a training facility in China, the Benoy Kondoor, sales director- and the Netherlands-based Royal initially be based in Agrifirm’s Dairy Farming Institute, in part- Middle East and Africa, based in Agrifirm Group announced existing manufacturing plant in nership with Nestle. The facility Dubai, United Arab Emirates. recently that they will be setting Tianjin, with plans to build a new features two training farms, trial The new office will enhance up a dairy animal feed joint ven- dairy premix and specialty plant fields and a training center to help customer service and integration ture in China. on the adjacent property. local forage growers and commer- with customers across the Middle The new company, Agrilakes, As dairy farms in the region cial dairy farmers develop their East and Africa, Darigold said. will leverage existing market continue to grow with increased skills. “We’re excited to open our office knowledge, insights, technologies sophistication and production Nuscience, a wholly owned sub- in Dubai as we recognize the Mid- and research capability from both efficiency, evolving dairy feed sidiary of Agrifirm and the com- dle East and Africa as an opportu- Land O’Lakes and Agrifirm to pro- practices are driving demand for pany’s key global animal nutrition nity to expand our capabilities,” vide service to China-based feed enhanced animal nutrition and entity, has been in China for 20 said Jonathan Spurway, leader of customers and dairy farmers. productivity, the two companies years and is currently operating Darigold’s Ingredients business. “With this new investment in noted. two young animal nutrition and “Direct relationships are critical to China alonogside Agrifirm, we Both companies bring experi- premix plants, and a business unit serving customers. Through true are continuing Land O’Lakes’ suc- ence operating in China to the that sells feed ingredients and insights and deep understanding cessful international commercial joint venture. Land O’Lakes cur- multi-species feed additives. of their business, we can better deliver excellent service and quality, as well as what our customers want and need.” United to defend proteins Kondoor reports to Ashwini Law, vice president of international from milk, the Strong Inside! business, based in Singapore, who The threat from alternative proteins is growing. joined Darigold last year. Law leads the business across Asia Pacific, Join us today to defend our market share! the Middle East and Africa, and For more information on the brings 20-plus years of experience in agricultural commodity food Dairy Protein Messaging Initiative, and beverage businesses. contact [email protected] Kondoor joined Darigold as sales director-Middle East and Africa Thank you to all last month. He brings industry experience to Darigold after man- sponsors and supporters aging dairy sales for Louis Dreyfus Co-Sponsors Company in the Middle East and Pakistan. Prior to that, he man- aged dairy sales for Olam. Earlier this year, Darigold had announced the expansion of its operations in Mexico through the addition of in-market sales and Sustaining Members logistics leaders. Like its recent expansion in Mexico, Darigold’s presence in Dubai furthers its commitment to customer excellence and helps address the increasing worldwide demand for healthy sources of protein for infants, adults and aging populations. Last year, the Middle East region imported $4.8 billion in dairy products; the US dairy industry’s share was about 3 percent, Dari- gold noted. In addition, nearby North Africa is a major market for skim milk powder, butter and cheese, with Algeria and Morocco having imported $1.5 billion in Supporting Members dairy products in 2018. “As the company continues to create direct sales, service and distribution networks, Darigold is focusing on providing solutions tailored for customer- and country-specific needs,” Law said. “Our expanded team will help Darigold to provide North- west dairy products’ unique sustainability, quality, nutrition and taste to the world.” Darigold is doing business in Dubai as Darigold FZE.

ADPI_July2019_cr_DPMI.indd 1 7/9/2019 1:02:55 PM July 12, 2019 CHEESE REPORTER Page 23

the hit Netflix show, with season Trends For Ice Cream Segment: Dairy Free three released July 4. The two new flavors are Elev- Smaller Portions, CBD & ‘Stranger Things’ en’s Heaven – waffle cone-flavored New York—July marks National sea salt-caramel combination con- ice cream with chocolate-coated Ice Cream Month, and consum- tinues to draw consumer attention, sugar cone pieces and a chocolate- ers have more options than ever as well as fruit flavors like passion icing-flavored ribbon, and Upside – flavor, packing size, nutritional fruit and guava. Down Pralines – chocolate ice content or favorite Netflix show A recent National Restaurant cream with praline pecans and a tie-in – when it comes to buying Association survey found that chocolate-caramel flavored ribbon. ice cream. three in four chefs named cannabi- Market trends feature individual diol (CBD) and cannabis-infused Private Label Ice Cream Goes ‘Beyond the Basics’ Ben & Jerry’s recently sent a letter to the US servings for calorie-conscious con- food as a hot trend in 2019 – a Food & Drug Administration in support of the sumers; more soy- and plant-based trend that may also include the ice In years past, only smaller, spe- legalization of CBD-infused foods and bever- alternatives; and pure and unique cream category. cialty retail stores sold premium ages. ingredients like whole vanilla bean Burlington, VT-based Ben & or unique ice cream, PLMA’s Vos- and possibly, cannabidiol. Jerry’s said the company “can’t burgh said. Now, a wide range of For consumers demanding a Annual sales of ice cream and wait to get into the CBD trend.” retailers cater to shoppers that super premium product, Trader sherbet in the US is around $7 “We are open to bringing CBD- want to go “beyond the basics.” Joe’s French Vanilla Ice Cream is billion, according to Information infused ice cream to your freezer as Among supermarkets, Publix made with real, simple ingredi- Resources, Inc. (IRI). Ice cream soon as it’s legalized at the federal offers a broad selection under its ents and contains very low over- is a mature category, with annual level,” the company reported. “Publix Premium” and “Publix run, defined as “the amount of air growth averaging about 2 percent. Currently, the FDA prohibits Greenwise Market” brands, he whipped into ice cream for vol- The ice cream category was adding CBD to foods and bever- said. Publix recently expanded its ume,” Vosburgh said. built upon the concept of indul- ages. A public hearing on the premium ice cream line to include Consumers looking for dairy- gence, and indulgence still remains legalization of CBD-infused foods quart size containers. free options are able to purchase a primary motivator for consumers, and beverages was held May 31, A new, limited edition line this soy-based Vanilla and Chocolate according to Bob Vosburgh, news and Ben & Jerry’s submitted a com- summer features flavors like South- Cherry Chip, as well as Chocolate director for the Private Labeling ment in support of legalization. ern Banana Pudding, New Orleans ice cream made with coconut milk. Manufacturing Association. Caramel Praline and Peanut But- Dairy free items are also avail- The health and wellness trend Single Serve, Smaller Packaging ter Pretzel Crunch. able from mass merchandiser is another factor that’s having an Calorie-conscious consumers not Another regional supermarket Target under its “Archer Farms” impact on the category. Retailers looking to give up indulgence are chain, Wegmans, is looking to brand. Flavors include Cashew and manufacturers are responding more often buying single-serve and appeal to health-conscious shop- Caramel, Mocha Almond Fudge, by offering products with less sugar, smaller containers of ice cream pers with its “Food You Feel Good Vanilla Cake & Cookie Dough, less fat and no artificial flavors. products. Research firm Mintel About” and “Wegmans Organic” and Caramel Brownie – all made “Dairy free” ice cream is slowly reports that over one-third of all brands. Flavors include Coconut with “almondmilk.” and steadily gaining in popularity, consumers now buy single-serve Mango and Creme Bruleé. Some key players in the private made with a base of ingredients such frozen treats. Trader Joe’s is rolling out more label ice cream manufacturing as coconut, almond or cashew “milk” Ice cream can be purchased in nutritious ice creams with just over market include Fieldbrook Farms; mixed with bananas or avocados. smaller, cup-sized containers or 300 calories per pint and higher lev- Ice Cream Specialties; GS Gelato; Sustainability and transparency individually-wrapped cones. els of protein. For instance, a pint of Gelato d’Italia; Pierre’s Ice Cream,; are likewise critical. For ice cream, Pop culture tie-ins are also a suc- Trader Joe’s Cookies n’ Cream con- House of Flavors; and Crystal this translates into products which cessful ice cream marketing tool tains 20 grams of protein. Creamery. are non-GMO, made with cage- to draw in consumers – particu- free eggs and sustainably sourced larly Millennials. Baskin-Robbins ingredients, he said. recently launched several “Stranger Artisanal ice cream made with Things”-inspired ice cream flavors Surrounding our Customers premium ingredients and exotic and treats, allowing customers to flavors remain in high favor. The literally and figuratively binge on with Quality Solutions Superior Solutions FLOOR DRAINS

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CPage 24 OMPANY NEWSCHEESE REPORTER July 12, 2019 We look at cheese differently.

www.cheesereporter.com/events.htm

SUPPLIER NEWS ...because we don’t just NYS Cheese Manufacturers’ Fall Meeting see cheese, we see the Planned For Sept. 8-10 In Watkins Glen, NY whole picture. 1.866.404.4545 www.devilletechnologies.com Watkins Glen, NY—The fall includes a business meeting led by CDRCheese ReporterCultured Ad.indd 1 Dairy yogurt demonstration2018-01-03 lab/sensory 11:52 PM meeting of the New York State Association president Nathan Pist- session. Cheese Manufacturers Association ner. Products Short Day two of the workshop will will be held here Sept. 8-10 at the Ed Gallagher with Dairy Farm- be dedicated to the manufacture Harbor Hotel. ers of America (DFA) will provide Course Sept. 10-11 of sour cream and crème fraiche. Attendees are encouraged to an update on the milk marketing Madison—The Wisconsin CDR Instructors will cover using dairy make hotel reservations as soon as outlook, followed by a session on will host a workshop here on the ingredients in cultured products, possible, with the early reservation the latest in fermented dairy prod- basics of manufacturing yogurt, understanding Greek yogurt, fla- discount ending Monday, Aug. 8, ucts led by Cornell University’s sour cream, kefir and other spe- vorings and sweeteners for cul- 2019 Samuel Alcaine. cialty cultured dairy products. tured products, and probiotics in The three-day meeting kicks off David Bandler, Cornell pro- The short course will be held cultured dairy products. with a cocktail party Sunday eve- fessor emeritus, will wrap up the Sept. 10-11 at Babcock Hall on The course will wrap up with a ning, followed by Monday’s annual meeting with “A Modern History the UW-Madison campus. It is sensory session on cultured dairy golf tournament at the Soaring of the New York State Cheese designed to provide the latest products. Eagles Golf Course at Mark Twain Manufacturers Association and information available to address Cost to attend the workshop is State Park in nearby Horseheads, Other Observations.” technical issues for processors $500 per student, and lodging is NY. Cost to attend this year’s event and provide the latest details on not included in the registration fee. Cost to attend the tournament is $175 per member and $275 for extended uses of these products. Students should bring their course is $75 per golfer and includes cart, member and spouse. The first day will cover milk confirmation to the workshop. breakfast and lunch. Cost for non-members is $200 composition and properties, acid For online registration, full Golf forms and fees should be and $300, respectively, according coagulation of milk and principles course details and lodging informa- returned to Alexander Solla no to the association. of gel formation, general principles tion, visit www.cdr.wisc.edu/short- of manufacturing yogurt, and a courses/cultured_prod_19. later than Friday, Aug. 30. The registration fee includes Cheese Curd Capital® 232 North Wallace Street Monday evening’s cocktail Monday evening reception at Gle- P.O. Box 610 reception will be held at Glenora nora Winery and awards banquet. Ellsworth, Wisconsin 54011 USA Wine Cellars, followed by the Extra tickets for the reception Director of Opera� ons Phone: (715) 273-4311 awards dinner at the Harbor Hotel and banquet are also for sale at $75 Wohlt Creamery LLC Fax: (715) 273-5318 at 7 p.m. per person. www.ellsworthcheese.com The final day of the meeting Complete event details, includ- A subsidiary of Ellsworth Coopera� ve Creamery will be dedicated to speaker and ing registration materials, are educational sessions. A continen- available online at www.nycheese- At Ellsworth Coopera� ve Creamery, pride is the most important ingredient in the products we make. We are 300+ patron dairy-families strong, with each of our member farms tal breakfast begins at 8 a.m., and makers.com. commi� ng 365-days-a-year to producingDirector the highest ofquality Operations milk. And then there’s Openingthe Fordedica� Wohlt on of our Creamery cheesemakers, produc� LLC on andin packaging teams, pu� ng out the best New London WI. product possible. It’s that sense of pride and commitment that makes our cheeses taste nament reception beginning at 5 Aso subsidiarygood and making us of dairy Ellsworth proud for over 100 years. Cooperative Creamery Sparta Butter Putters p.m. Golf Outing Set For The registration deadline is As part of our growth, we are seeking an experienced, Director of Opera� ons to Aug. 30. A fee of $60 includes golf,At Ellsworthadd to our teamCooperative at Wohlt Creamery Creamery in New London WI. Where we process, pack- pride is the most important Wednesday, Sept. 11 cart, lunch and reception. ingredientage, and indistribute the products our award-winning we make. processed cheeses. We are 300+ patron dairy families Sparta, WI—The annual Sparta Registration forms and feesstrong, As Director with ofeach Opera� of ons our for member Wohlt Creamery farms you will: committing 365 day a year to Butter Putters Golf Outing will can be sent to: River Run Golfproducing  Develop the and highest execute thequality company’s milk. business strategies in order to a� ain the goals And then there’s the dedication of Course, Attention: Garrett, 1210our cheesemakers, of the board production and packaging teams, putting out the best return to the River Run Golf  Prepare and implement comprehensive business plans to facilitate achievement by Course here Wednesday, Sept. 11, East Montgomery St., Sparta, WI,product planning possible. cost-eff It’s ec� vethat opera� sense ons and of market pride development and commitment ac� vi� es that makes our cheeses taste so good and 2019. 54656. River Run Golf Coursemaking  Communicate us dairy proud and maintain for overtrust rela� 100 onships years. with Customers, Vendors, and all Registration begins at 9:30 a.m. also accepts Visa and MasterCard levels of staff at all facili� es and the four-person scramble tour- payments via phone at (608) 269-As part Direct of our produc� growth, on control we opera� are seekingons to ensure an the experienced, opera� ng needs Directorof the of Operations to add to our team at Wohlt Creamery company in New are met. London WI. Where we process, package, and distribute our award-winning processed nament kicks off with an 11 a.m. 3022.  Support and ini� ate change in the produc� on and produc� on control to promote shotgun start. For more information on the golfcheeses. con� nuous improvement. Manage the evalua� on of con� nuous improvement and Lunch will be provided in the course, visit: www.riverrunsparta. recommend capital requirements as jus� fi ed by the business plan. clubhouse, along with a post-tour- com/  Inspire confi dence within all employees and overcome resistance while promo� ng As Director a team environment. of Operations for Wohlt Creamery you will: • Develop andCheese execute Curd Capital® the company’s business strategies in order to attain the goals of the board To be our Director of Opera� ons you will need: 232 North Wallace Street  P.O. Box 610 Western Repack • Prepare Bachelor’s anddegree implement preferred with comprehensive advanced knowledge business of processed plans cheese to facilitate achievementEllsworth, Wisconsinby planning 54011 USA cost- effectivemanufacturing operations and market development activities Phone: (715) 273-4311 We Purchase Fines and Downgraded Cheese  A minimum of 5-7 years of job-related experience in the industry Fax: (715) 273-5318 •  Communicate A proven record of leadingand maintain opera� onal trust teams relationships and the development with and Customers, Vendorswww.ellsworthcheese.com, and all levels of staff at all Reclamation Services facilities achievement of strategic corporate goals •  Direct Unques� productiononable Integrity control operations to ensure the operating needs of the company are met. • Cheese Salvage/Repacking  • Support Above average and organiza� initiate onal change and interpersonal in theDirector production, skills as well of as Operationsproduction above average control Opening to promote continuous improvement. • 640# Block Cutting communica� on skills including wri� en, verbal and computer programs knowledge Manage theFor evaluation Wohlt Creamery of continuous LLC improvementin and recommend capitalNew London requirements WI. as justified by

For the considera� business on,A plan. please subsidiary email resumeof Ellsworth and cover Cooperative Creamery Handling cheese both as a le� er with salary requirements to Human Resources • Inspire confidence within all employees and overcome resistance while promoting a team environment. service and on purchase. at: [email protected] Ellsworth Cooperative Creamery pride is the most important Bring us your special projects ingredient in the products we make. We are 300+ patron dairy families To beChosen our candidates Directorstrong, must with passof each Operationsa of our member farms you will need: committing 365 day a year to Western Repack, LLC •pre-employmentBachelor’sproducing drugdegree and the preferredalcohol highest screening. quality with milk.advanced knowledge of processedAnd then cheese there’s manufacturing the dedication of (801) 388-4861 Wohlt Creameryour LLC cheesemakers, is an EOE production and packaging teams, putting out the best • A minimumproduct of 5 possible.-7 years It’s of that job sense-related of pride experience and commitment in the that industry makes our cheeses taste so good and • A provenmaking record us of dairy leading proud operationalfor over 100 years. teams and the development and achievement of strategic corporateAs goals part of our growth, we are seeking an experienced, Director of Operations to add to our team at Wohlt Creamery in New London WI. Where we process, package, and distribute our award-winning processed • Unquestionablecheeses. Integrity • Above average organizational and interpersonal skills as well as above average communication skills includingAs written, Director verbal of Operations and computer for Wohlt programs Creamery knowledge you will: • Develop and execute the company’s business strategies in order to attain the goals of the board • Prepare and implement comprehensive business plans to facilitate achievement by planning cost- For consideration,effective please operations email and market resume development and activities cover letter with salary requirements to • CommunicateHuman and maintainResources trust relationships at: [email protected] with Customers, Vendors, and all levels of staff at all Chosenfacilities candidates must pass a pre-employment drug and alcohol screening. • Direct production control operations to ensure the operating needs of the company are met. • Support and initiate change in the production, production control to promote continuous improvement. Manage the evaluation of continuous improvement and recommend capital requirements as justified by the business plan. • Inspire confidence within all employees and overcome resistance while promoting a team environment.

To be our Director of Operations you will need: • Bachelor’s degree preferred with advanced knowledge of processed cheese manufacturing • A minimum of 5-7 years of job-related experience in the industry • A proven record of leading operational teams and the development and achievement of strategic corporate goals • Unquestionable Integrity • Above average organizational and interpersonal skills as well as above average communication skills including written, verbal and computer programs knowledge

For consideration, please email resume and cover letter with salary requirements to Human Resources at: [email protected] Chosen candidates must pass a pre-employment drug and alcohol screening. July 12, 2019 CHEESE REPORTER Page 25

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

e n

i e

k v Since 1876

e y e-mail: [email protected] S MARKET PLACE The “Industry’s” Market Place for Products, Services, Equipment and Supplies, Real Estate and Employee Recruitment

Classified Advertisements should be placed by Thursday for the Friday issue. Classified ads 5. Promotion & Placement 10. Cheese & Dairy Products charged at $0.75 per word. Display Classified PROMOTE YOURSELF - By contact- AGED CHEDDAR FOR SALE: 4 year advertisements charged at per column inch ing Tom Sloan & Associates. Job old Sharp White Cheddar 40# blocks. rate. For more information, call 608-316-3792 enhancement thru results oriented pro- Produced August-December 2014 in or email [email protected] fessionals. We place cheese makers, Wisconsin. Available in full truckload or production, technical, maintenance, engi- pallet quantities in Wisconsin. Please neering and sales management people. call Zach at 847-573-4982 or email 1. Equipment for Sale 2. Equipment Wanted Contact Dairy Specialist David Sloan, him at [email protected] with Tom Sloan or Terri Sherman. TOM EQUIPMENT FOR SALE: Cryovac inquiries. WANTED TO BUY: Westfalia or Alfa- SLOAN & ASSOCIATES, INC., PO Box Rotary Chamber Vac Model 8610-14. 4 Laval separators. Large or small. Old or 50, Watertown, WI 53094. Phone: (920) KEYS MANUFACTURING: chambers with 14” dual seal wire set- new. Top dollar paid. Call Great Lakes 261-8890 or FAX: (920) 261-6357; or by Dehydrators of scrap cheese for the up. Chamber product size is 12”x14” Separators at (920) 863-3306 or email email: [email protected]. animal feed industry. Contact us for or 6”x18”. Machine is 460 volt 3 phase. [email protected] your scrap at (217) 465-4001 or email Completely refurbished. Call 608-437- 6. Positions Wanted 5598 x 2344 or email: akosharek@ [email protected]. dairyfoodusa.com 4. Walls & Ceiling 8. Real Estate 12. Warehousing WESTFALIA SEPARATORS: New EXTRUTECH PLASTICS Sanitary FREEZER SPACE available at our arrivals! Great condition. Model num- POLY BOARD© panels provide bright DAIRY PLANTS FOR SALE: http://dairyassets.webs.com/acqui- warehouse facilities in Wisconsin and bers 120, 130, 170 and 200. All water white, non-porous, easily cleanable sitions-mergers-other. Contact Jim Utah. We have expanded and have savers. Call GREAT LAKES SEPA- surfaces, perfect for non-food contact at 608-835-7705; or by email at jim- freezer and cooler space available. RATORS at (920) 863-3306 or e-mail applications. CFIA and USDA accepted [email protected] Please contact Bob at MARTIN [email protected]. and Class A for smoke and flame. Call WAREHOUSING at 608-435-2029 or EPI Plastics at 888-818-0118 or www. FOR SALE: Car load of 300-400-500 9. Conversion Services email at [email protected]. epiplastics.com for information. late model open top milk tanks. Like new. (262) 473-3530 ALFA-LAVAL SEPARATOR: Model Manways & GeneralProduction Manager Supervisor MRPX 518 HGV hermetic separator. Inspection Ports Plainview Milk EstablishedProducts in 1899Cooperative as dairy cooperative has aservicing 120-year local patrons, tradition Plainview in Milkthe Can be set up for warm or cold. Call dairy industry withProducts over is located 175+ 1.5 patrons hrs from the in Twin Minnesota Cities of Minneapolis/ and Wisconsin.St. Paul and 30 min The- utes from Rochester in beautiful SE Minnesota. cooperative completed a merger in 2018 and now operates two GREAT LAKES SEPARATORS at We are looking for an experienced supervisor for our newly remodeled (920) 863-3306 or e-mail drlambert@ facilities supplyingand fluidautomated milk intodryer retail/foodand evaporators service to lead amarkets team of andproduction bulk asdairy- ingredients for furthersociates processing.and excel in our mission. The Production Supervisor will assist in dialez.net. creating an atmosphere where people are: Committed to what we want We are seekingto qualified become (our General vision), able Manager to execute candidates. our mission & guided This position by our core will FOR SALE: 1500 and 1250 cream report directly tovalues. the Board of Directors with accountability for financial tanks. Like New. (800) 558-0112. (262) conditions, businessThis position development, will oversee the staff operation leadership of the Dryer and and producing Evaporator plant, safe, 473-3530. while ensuring that all measures for Food Safety, Quality, Regulatory Stan- high quality products.dards and Good This Manufacturing position will Practices work are closely followed. with customers, vendors, member owners and employees. SEPARATOR NEEDS - Before you buy The successful candidate will have excellent leadership, planning, organizational, problem solving and interpersonal communication skills. This posi- a separator, give Great Lakes a call. A Bachelor’s Degreetion requires in Dairy a Bachelor’s or Food degree Science or equivalent is preferred; in Dairy Science 5 to or10 related years TOP QUALITY, reconditioned machines of experience infield managing and at andleast leading 3-5 years’ teams experience in a similarin a rolefood i s manufacturing/required. dairy Sanitary, Heavy-Duty environment. at the lowest prices. Call Dave Lam- Prevents CIP Solution, Plainview Milk We Products will offer the Cooperative successful candidate offers a a competitive competitive wage, salaryhealth insur with- bert, Great Lakes Separators at (920) Air and Powder Leakage relocation bonus,ance Health, benefits Dental, and paid Life vacation and time.Disability. 863-3306; [email protected] for Evaporator Dryer Technologies, Inc. Qualified CandidatesFor consideration, please pleasesubmit email, resume fax orand mail salarya cover requirement letter, resumes andto: salary requirements to: more information. www.evapdryertech.com [email protected] Milk Products Attn: Human ResourcesAttn: Human Resources PLAINVIEW MILK130 PRODUCTS2nd St. SW, Plainview, COOP MN 55964 Plant Manager - Malone, WI 130 2nd StreetFax SW, 507-534-3992 Plainview, MN 55964 507-534-3872 E-Mail: [email protected] Come join our team! Mosaic Meadows is bringing together the finest artisanal creameries in the world. Our products have won top honors at the U.S. Cheese Championship, World Cheese Championship, Good Food Awards and more… and we’re just getting started! We are in growth mode and expanding our processing capabilities. Our cheesemakers benefit from an experienced sales, Lead Licensed Cheesemaker marketing and service team as well as a coast-to-coast broker-and-distribution network. Join the best and make us even better. Door Artisan Cheese Company, LLC, is located in the heart of Door County Wiscon- sin in beautiful Egg Harbor, WI. We are looking to add a Licensed Cheesemaker to Overall responsibilities: Manage all Chevre operations and Hard Cheese our team. Our company is rapidly becoming recognized for producing Champion- make production, product safety, quality, consistency and standardizing ship quality Artisan Cheeses. In our two years of operation we have been awarded production process. Direct safety program, production efficiency and assist with 4 major awards for the quality of our diverse Artisan cheese varieties. expansion projects. Meet customer expectations and sales volumes. With a new state of the art production facility, including three aging caves, we are Preferred experience: Experience in Chevre operations and Hard Cheese able to craft the most unique Artisan cheeses in the Industry. make production preferred. Experience leading and supervising others. We are seeking to hire a Licensed Cheesemaker to produce and oversee all Cheese Knowledge of cheese affinage process, food safety controls and sanitation Production Activities. The candidate must have the following: programs. Familiar with FMO/FDA compliance and State and Federal n 5 years as Licensed Cheesemaker regulations. Working knowledge of lean production, shrink reduction, and n HTST Operators License pasteurization concepts and regulatory requirements. n Working knowledge of HACCP and Food Safety Plans

n Experience in leading a small cheesemaking team in the manufacture of If interested, please send resumes to: our cheeses. Mosaic Meadows, LLC Attn: Human Resources We offer a competitive salary, and a beneﬁt package that includes Major Medical N3569 Vanden Bosch Rd. Health Insurance; employee supported Dental Plan; vacation; and Performance bo- Kaukauna, WI 54130 nus plan. If interested in this dream opportunity, please submit resume to: Or apply online at: www.indeed.com by searching Plant Manager in Malone, WI Michael C. Brennenstuhl Door Artisan Cheese Company, LLC Mosaic Meadows, LLC and its subsidiaries will consider applicants for any position 8103 N Hwy 42, Egg Harbor, WI 54209 without regard to any applicant’s race, color, religion, creed, gender, national origin, age, Email: [email protected] disability, marital or veteran status, sexual orientation, or any other legally protected status. Cell: (920) 883-5340

Page 26 CHEESE REPORTER July 12, 2019

$1.35 DAIRY FUTURES PRICES 2017 – Current WPC Prices SinceSETTLING 2012 PRICE *Cash Settled $1.25 High/Low Range (Edible 34% Central and West) Date Month Class III* Class IV* Dry Whey* NDM* Butter* Cheese* 7-5 July 19 17.38 16.90 35.325 104.250 239.000 1.8100 7-8 July 19 17.33 16.91 35.200 104.250 238.350 1.8080 $1.15 7-9 July 19 17.38 16.91 35.200 104.250 238.550 1.8140 7-10 July 19 17.37 16.91 34.975 104.500 238.550 1.8140 $1.05 7-11 July 19 17.35 16.91 34.800 104.500 238.550 1.8140 7-5 August 19 17.89 17.17 34.050 105.050 242.975 1.8680 $0.95 7-8 August 19 17.83 17.09 33.925 105.000 242.000 1.8660 7-9 August 19 17.80 17.14 33.925 104.750 243.000 1.8610 7-10 August 19 17.75 17.10 34.000 104.500 243.000 1.8580 $0.85 7-11 August 19 17.69 17.10 33.725 104.500 242.575 1.8540 7-5 September 19 18.03 17.36 34.500 106.700 243.625 1.8780 $0.75 7-8 September 19 17.95 17.23 35.050 106.250 242.300 1.8730 7-9 September 19 17.96 17.36 34.150 106.275 244.275 1.8790 $0.65 7-10 September 19 17.95 17.35 34.075 106.075 243.625 1.8790 7-11 September 19 17.90 17.24 33.725 105.400 243.000 1.8760

$0.55 7-5 October 19 18.01 17.49 34.175 108.000 243.500 1.8790 7-8 October 19 17.98 17.35 34.175 107.775 241.500 1.8800 7-9 October 19 17.96 17.47 33.500 108.050 243.500 1.8830 7-10 October 19 17.95 17.40 33.700 107.500 243.000 1.8830 7-11 October 19 17.89 17.29 33.750 106.525 241.300 1.8770

$18.50 7-5 November 19 17.80 17.56 34.000 109.950 239.800 1.8580 7-8 November 19 17.79 17.30 34.000 109.000 237.525 1.8600 $18.50 Class II Milk Price Class IV Milk Price 7-9 November 19 17.78 17.36 33.050 109.600 238.800 1.8670 $17.50 2018 vs. 2019 2018 vs. 2019 7-10 November 19 17.78 17.36 33.500 109.000 239.200 1.8670 7-11 November 19 17.73 17.28 33.125 107.625 238.000 1.8600 $17.50 7-5 December 19 17.26 17.47 34.225 111.500 235.750 1.8120 $16.50 7-8 December 19 17.25 17.26 34.225 110.300 234.225 1.8100 $16.50 7-9 December 19 17.28 17.35 33.500 110.300 235.750 1.8120 7-10 December 19 17.28 17.26 33.500 110.050 235.500 1.8150 7-11 December 19 17.23 17.20 33.500 109.600 235.000 1.8090 $15.50 $15.50 7-5 January 20 16.83 17.35 34.825 112.825 228.900 1.7650 7-8 January 20 16.81 17.21 34.825 111.550 228.750 1.7650 7-9 January 20 16.83 17.20 34.325 112.625 228.850 1.7690 $14.50 $14.50 7-10 January 20 16.85 17.11 34.125 112.125 228.900 1.7700 7-11 January 20 16.79 17.10 34.125 110.800 229.550 1.7620

$13.50 $13.50 7-5 February 20 16.70 17.33 34.225 113.000 228.750 1.7570 7-8 February 20 16.70 17.23 34.225 112.675 228.750 1.7570 7-9 February 20 16.70 17.23 33.750 113.650 228.750 1.7590 $12.50 $12.50 7-10 February 20 16.70 17.12 34.000 112.925 228.750 1.7600 J F M A M J J A S O N D J F M A M J J A S O N D 7-11 February 20 16.66 17.12 34.000 111.500 229.500 1.7520 7-5 March 20 16.73 17.44 33.750 114.775 228.750 1.7600 7-8 March 20 16.71 17.35 33.750 113.875 228.275 1.7600 7-9 March 20 16.68 17.18 33.500 114.400 228.275 1.7600 HISTORICAL MILK PRICES - CLASS IV 7-10 March 20 16.70 17.19 33.500 113.750 229.000 1.7600 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 7-11 March 20 16.69 17.19 33.575 113.100 229.000 1.7530

‘16 13.31 13.49 12.74 12.68 13.09 13.77 14.84 14.65 14.25 13.66 13.76 14.97 7-5 April 20 16.77 17.49 34.200 116.200 228.800 1.7640 7-8 April 20 16.74 17.49 34.200 115.700 228.300 1.7640 ‘17 16.19 15.59 14.32 14.01 14.49 15.89 16.60 16.61 15.86 14.85 13.99 13.51 7-9 April 20 16.74 17.49 34.200 115.700 228.375 1.7640 ‘18 13.13 12.87 13.04 13.48 14.57 14.91 14.14 14.63 14.81 15.01 15.06 15.09 7-10 April 20 16.78 17.25 34.200 115.175 229.025 1.7650 ‘19 15.48 15.86 15.71 15.72 16.29 16.83 7-11 April 20 16.76 17.25 34.200 114.000 229.025 1.7560 7-5 May 20 16.86 17.58 35.100 117.300 230.425 1.7730 $1.90 7-8 May 20 16.85 17.58 35.100 117.300 229.475 1.7730 40-Pound DAIRY PRODUCT SALES $1.85 7-9 May 20 16.85 17.58 35.100 117.300 229.475 1.7730 $1.80 Block Avg 7-10 May 20 16.88 17.39 35.100 117.950 229.475 1.7730 July 10, 2019—AMS’ National Dairy Prod- $1.75 7-11 May 20 16.88 17.33 35.100 115.000 229.475 1.7660 ucts Sales Report. Prices included are pro- $1.70 vided each week by manufacturers. Prices $1.65 Interest - July 11 20,368 7,673 2,610 8,766 7,569 19,506 collected are for the (wholesale) point of sale $1.60 for natural, unaged Cheddar; boxes of but- $1.55 ter meeting USDA standards; Extra Grade $1.50 $1.45 CHEESE REPORTER SUBSCRIBER SERVICE CARD edible dry whey; and Extra Grade and USPH $1.40 Grade A nonfortified NFDM. •Revised CME vs AM S $1.35 J A S O N D J F M A M J PLEASE SEND ME MORE INFORMATION ON: July 6 June 29 June 22 June 15 ___Advertising ___Subscribing _____Subscripion Change ___Other______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 1.8204 1.7942 1.7548 1.7264 Sales Volume Pounds Title ______US 11,449,331 12,126,169 12,375,186 13,318,039• Company ______500-Pound Barrel Cheddar Cheese Prices, Sales & Moisture Contest Address ______Weighted Price Dollars/Pound US 1.7949 1.7276 1.6690 1.6659 City/St/Zip ______Adjusted to 38% Moisture New Subscriber Info E-Mail Phone ______US 1.7072 1.6407 1.5853 1.5851 Sales Volume Pounds Name ______US 9,257,204 12,351,602 12,484,114 14,136,522 Weighted Moisture Content Percent Title ______US 34.82 34.71 34.73 34.84 Company ______Butter Address ______Weighted Price Dollars/Pound US 2.3798 2.3729• 2.3594 2.3805 City/St/Zip ______Sales Volume Pounds US 3,622,501 4,570,841• 4,355,787• 3,285,049 Old Subscriber Info E-Mail Phone ______Dry Whey Prices TYPE OF BUSINESS: JOB FUNCTION: Weighted Price Dollars/Pounds ___Cheese Manufacturer ___Company Management US 0.3526 0.3662• 0.3553• 0.3669 ___Cheese Processor ___Plant Management Sales Volume ___Cheese Packager ___Plant Personnel US 3,478,894 6,557,594• 6,344,086• 6,629,881 ___Cheese Marketer(broker, distributor, retailer ___Laboratory (QC, R&D, Tech) Nonfat Dry Milk ___Other processor (butter, cultured products) ___Packaging ___Whey processor ___Purchasing Average Price Dollars/Pound ___Food processing/Foodservice ___Warehouse/Distribution US 1.0529 1.0443• 1.0427• 1.0450 ___Supplier to dairy processor ___Sales/Marketing Sales Volume Pounds US 11,735,123 26,160,716• 24,697,251• 21,553,329• Circle, copy and FAX to (608) 246-8431 for prompt response

July 12, 2019 CHEESE REPORTER Page 27

DAIRY PRODUCT MARKETS NATIONAL - CONENTIONAL DAIRY PRODUCTS AS REPORTED BY THE US DEPARTMENT OF AGRICULTURE Conventional dairy retail ad numbers increased 3 percent this week. Organic dairy ad numbers grew 66 percent. Conventional dairy ads represented 93 percent of all retail dairy ads. Con- ventional ice cream in 48- to 64-ounce containers continues as the most advertised product, WHOLESALE CHEESE MARKETS but ad numbers dipped 14 percent. The average price, $2.74, decreased 10 cents from last week. Ad numbers for 8-ounce conventional cream cheese and organic 16-ounce Cottage NATIONAL - JULY 5: Cheese producers are busy in the East and the Midwest, while heat- cheese both declined. related milk fluctuations are affecting milk supplies in the West. Spot milk prices ranged from $2.00 under to $0.50 over Class in the Midwest region. For a comparison, prices ranged from Conventional cheese ads rose 4 percent, but organic cheese ads declined 67 percent. The $5 to $2 under during this week last year. That said, a majority of cheese makers are opting average price for conventional 8-ounce block cheese is $2.27, up 21 cents from last week. out of the spot market, using internally sourced supplies. Cheese demand reports are mixed, The average price for organic 8-ounce block cheese is $3.99, down $1.00 for a $1.72 organic but retail sales got a shot in the arm from the holiday this week. Generally, pizza cheese, curds, price premium. and barrel producers relay positive sales week to week. Inventories are available, but some producers report tightening supplies. Earlier expectations of slowing sales due to higher market Conventional yogurt ad numbers increased 40 percent. Organic yogurt ads dropped 34 per- prices have subsided, at least currently. cent. The average advertised price for conventional yogurt in 4- to 6-ounce containers is $0.54, even with last week. There are 39 times more ads for conventional yogurt than organic yogurt NORTHEAST- JULY 10: Milk output is seasonally lower, as the humidity impacts cow Conventional milk ad numbers decreased 15 percent. comfort in parts of the Northeast. Although milk off the farms, and some bottlers’ Class I orders have decreased, milk loads are readily available for cheese makers’ needs. Swiss cheese production is active and interest has strengthened at this time of year. Mozzarella RETAIL PRICES - CONVENTIONAL DAIRY - JULY 12 and Provolone supplies are steady to growing, but the demand is somewhat slower. Cheddar Commodity US NE SE MID SC SW NW cheese demand has increased. Butter 1# 3.44 3.44 3.46 2.99 2.79 3.99 2.50 Wholesale prices, delivered, dollars per/lb: Cheddar 40-lb blocks: $2.3100 - $2.5950 Process 5-lb sliced: $1.9375 - $2.4175 Cheese 8 oz block 2.27 2.28 2.26 2.33 2.52 2.15 2.22 Muenster: $2.2950 - $2.6450 Swiss Cuts 10-14 lbs: $3.2300 - $3.5525 Cheese 1# block 4.45 3.66 4.79 3.99 4.25 NA NA Cheese 2# block 6.48 7.99 NA 4.99 NA 8.99 4.99 MIDWEST AREA - JULY 10: Midwest cheese makers suggest the milk supply may Cheese 8 oz shred 2.25 2.04 2.38 2.20 1.93 2.17 2.28 be tightening. While there is still plenty of milk for cheese vats, there does not seem to be an abundance of spot milk offers. Holiday offers were less available than in previous years, and Cheese 1# shred 4.68 3.99 4.99 NA 4.40 NA NA $2 under to $1 over Class are normal prices for spot loads, very similar to the post-holiday Cottage Cheese 2.15 2.46 2.00 1.99 1.77 NA 2.19 prices last year. Cheese makers understand milk intakes and components may slide lower Cream Cheese 1.84 1.90 1.71 2.00 2.19 2.00 NA as heat and humidity issue into the Upper Midwest. Crop and forage concerns, and the exodus of more dairy farms from the industry, may compel manufacturers to become more Flavored Milk ½ gallon 1.83 NA NA 1.83 NA NA NA sedulous in their search for extra milk later in the year. But for now, milk is in good balance Flavored Milk gallon 2.87 NA NA 2.99 NA 3.99 2.31 with processing needs. Manufacturers are running facilities at or near full schedules with Ice Cream 48-64 oz 2.74 2.65 2.58 2.86 2.50 3.09 2.75 cheese orders to fill. Cheese stocks are adequate to meet most buyer needs, but processors want to stay ahead of late season demand. Milk ½ gallon 2.17 2.50 2.99 1.50 1.89 NA NA Milk gallon 2.69 NA 3.99 2.19 3.29 NA 2.44 Wholesale prices delivered, dollars per/lb: Sour Cream 16 oz 1.88 1.87 1.96 1.28 1.64 1.50 1.79 Brick 5# Loaf: $2.2225 - $2.6475 Cheddar 40# Block: $1.9450 - $2.3450 Yogurt (Greek) 4-6 oz .95 .96 .99 .95 .95 .85 .92 Monterey Jack 10#: $2.1975 - $2.4025 Mozzarella 5-6#: $2.0225 - $2.9675 Muenster 5# $2.2225 - $2.6475 Process 5# Loaf: $1.8675 - $2.2275 Yogurt (Greek) 32 oz 3.70 4.33 3.64 3.70 3.47 3.47 3.07 Grade A Swiss 6-9#: $2.7450 - $2.8625 Blue 5# Loaf: $2.4900 - $3.5600 Yogurt 4-6 oz .54 .57 .50 .61 .47 .49 .48 Yogurt 32 oz 2.53 3.13 NA NA 3.49 2.50 1.62 WEST - JULY 10: The grilling season is on in the West as temperatures warm up. As the result, domestic cheese sales remain active. Industry players state that with current strong US: National Northeast (NE): CT, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VT; domestic prices, it is harder to attract more international buyers aside from contractual sales. Southeast (SE): AL, FL, GA, MD, NC, SC, TN, VA, WV; Midwest (MID): IA, IL, IN, A new free trade treaty was agreed to between the Mercosur countries and the EU that could KY, MI, MN, ND, NE, OH, SD, WI; South Central (SC): AK, CO, KS, LA, MO, NM, impact the international cheese market moving forward. Meanwhile, cheese manufacturing OK, TX; Southwest (SW): AZ, CA, NV, UT; Northwest (NW): ID, MT, OR, WA, WY schedules are busier for some western producers and stable for others. Cheese inventories are plentiful to meet all buying needs, and there is a lot of Mozzarella in warehouses. ORGANIC DAIRY - RETAIL OVERVIEW Wholesale prices delivered, dollars per/lb: Cheddar 10# Cuts: $2.1625 - $2.3825 National Weighted Retail Avg Price: Greek Yogurt 4-6 oz: NA Cheddar 40# Block: $1.9825 - $2.4250 Monterey Jack 10#: $2.1725 - $2.4450 Cheese 8 oz block: $3.99 Greek Yogurt 32 oz: NA Process 5# Loaf: $1.8850 - $2.1400 Swiss 6-9# Cuts: $2.8275 - $3.2575 Cream Cheese 8 oz: $2.54 Milk ½ gallon: $3.82 Cottage Cheese 16 oz: $3.99 Milk gallon: $6.35 FOREIGN -TYPE CHEESE - JULY 10: Domestic demand is steady, but anticipated Yogurt 4-6 oz: $0.89 Sour Cream 16 oz: $2.61 to decrease a bit with the summer holidays. Extensive deliveries to southern European holi- Yogurt 32 oz: $3.66 Ice Cream 48-64 oz: $5.99 day destinations are expected to offset any domestic order decline. Cheese production in the EU is seasonally down because of a downhill pressure on milk supplies. DRY DAIRY PRODUCTS - JULY 11 Selling prices, delivered, dollars per/lb: Imported Domestic Blue: $2.6400 - 5.2300 $2.3675 - 3.8550 NDM - CENTRAL: Low/medium heat outputs are seasonally down, NDM production is ongoing as condensed skim volumes Gorgonzola: $3.6900 - 5.7400 $2.8750 - 3.5925 NDM prices in the Central are slightly lower are enough to meet most drying needs. Parmesan (Italy): 0 $3.7550 - 5.8450 on the top of the mostly, but steady else- where. Coming off the holiday, spot trades Romano (Cows Milk): 0 $3.5575 - 5.7125 are light. NDM production schedules are NDM - EAST: Eastern low/medium heat Sardo Romano (Argentine): $2.8500 - 4.7800 0 active and a main focus for several produc- NDM prices moved down slightly at the top Reggianito (Argentine): $3.2900 - 4.7800 0 ers in the region. Inventories are available of the mostly. Manufacturers have offers and Jarlsberg (Brand): $2.9500 - 6.4500 0 for customers’ requests. buyers have several bids on various marke Swiss Cuts Switzerland: 0 $3.2675 - 3.5900 exchanges. However, trades are somewhat Swiss Cuts Finnish: $2.6700- 2.9300 0 NDM - WEST: While NDM cash prices quiet on the spot market this week. Some slightly dipped, the market tone shows no operations are mainly focusing on low/ significant signs of weakness, but is some- medium heat NDM production currently. WHOLESALE BUTTER MARKETS - JULY 10 how unsteady at this moment. For some Supplies range heavy to somewhat short. processors, prices should bounce again High heat NDM spot prices are unchanged. WEST: Manufacturers relay that a few pulls from Class II, especially ice cream mak- throughout the summer season driven by Trading activities are very light. Manufactur- Class II processors remained open through- ers are strong. In some instances, microfix- lower regional milk intakes. On the other ers’ production schedules are limited to non- out the holiday week, keeping cream sup- ing is active in some processing plants. Bulk/ hand, some buyers/end users hope to see existent. Also, inventories are following suit. plies from getting too sloppy. Churning is print butter demands from groceries stores, another dip on prices soon as NDM inven- proceeding with the available cream, but wholesaler, and restaurants are reported as tories from recent production are readily LACTOSE: Prices moved lower at the some butter makers say production is lower fair/good. With summer season in full swing available. Nevertheless, according to NDM bottom of the range. Quarter three contract than expected. Retail bids are steady and and milk butterfat levels at the lowest level manufacturers, most stocks are highly com- prices are now in play, and buyers and sell- solid, but a few manufacturers are trying of the year, the butter market is expected to mitted for current and near future contracts. ers have come to terms through the end to hold back on shipments by their own firm somehow in the next few days. Futures values for Q3/Q4 contracts shifted of the year. Some end users are willing to volition. They would like to see a little more down, but remain above $1.04 per pound lock in prices to assure coverage into the cushion in available butter stocks before NORTHEAST: Fluid cream demand, for the rest of the year. Back to the regional future, especially if the value of the brand is releasing print butter. Bulk butter demand from Class II production, returned to pre- spot market, sales have been more active lionized. Contracted prices have tended to varies. Some manufacturers are seeing holiday form and milk supplies are back to than the previous shortened holiday week. be well above spot market prices for some stronger than usual demand and anticipate modest levels for a few regional butter/pow- Demands from cheese makers and bakers time, but a few market observers anticipate this interest to grow as more confectionary der balancing plants. Therefore, regional are fair/good. Although regional farm milk this gap may start to narrow as time passes. customers ramp up their activities later this churning trends are lower, for some, than summer. Bulk butter overages have eased previous weeks’ rates. While butter stocks back. A few industry contacts report lower are comfortable in a few plants, others WEEKLY COLD STORAGE HOLDINGS bids are getting vetted through the industry, are more prone to build inventory to offset SELECTED STORAGE CENTERS IN 1,000 POUNDS - INCLUDING GOVERNMENT and have generated sales for older produc- anticipated seasonal declines in butter pro- tion at levels below published prices. duction as summer progresses. As market DATE ...... BUTTER CHEESE uncertainty looms around increased US 07/08/19 ...... 40,021 89,548 CENTRAL: Butter manufacturing in the tariffs on imported EU butter, export chan- 07/01/19 ...... 39,543 89,779 Central region is steadily slowing down as nels grapple with existing non-competitive Change ...... 478 -231 cream volumes are less available. Cream butter prices. Percent Change...... 1 0 Page 28 CHEESE REPORTER July 12, 2019

for 2020 is unchanged from last CME CASH PRICES - JULY 8 - JULY 12, 2019 Cheese Prices (Continued from p. 1) month, at $1.0450 per pound. Visit www.cheesereporter.com for daily prices The 2019 Class III price fore- 500-LB 40-LB AA GRADE A DRY on slower expected shipments of cast is raised from last month, to CHEDDAR CHEDDAR BUTTER NFDM WHEY butterfat products. The 2020 fat $16.05 per hundredweight, as the MONDAY $1.7700 $1.8400 $2.3925 $1.0400 $0.3250 basis export forecast is also reduced higher cheese price more than off- July 8 (-1) (-¾) (-1¼) (NC) (-¼) on expectations that US butter sets a lower dry whey price, and the TUESDAY $1.7600 $1.8400 $2.3950 $1.0375 $0.3200 July 9 (-1) (NC) (+¼) (-¼) (-½) exports will continue to be less Class IV price is raised, to $16.45 WEDNESDAY $1.7675 $1.8300 $2.4075 $1.0375 $0.3225 competitive globally. per hundred, as a higher nonfat dry July 10 (+¾) (-1) (+1¼) (NC) (+¼) The skim-solids basis import milk price more than offsets the THURSDAY $1.7675 $1.8300 $2.4100 $1.0300 $0.3225 forecasts for 2019 and 2020 are lower butter price. July 11 (NC) (NC) (+¼) (-¾) (NC) unchanged from last month, but The 2020 Class III price forecast FRIDAY $1.7400 $1.7850 $2.4125 $1.0275 $0.3225 the skim-solids basis exports for is unchanged from last month, at July 12 (-2¾) (-4½) (+¼) (-¼) (NC) both years are reduced from last $16.65 per hundred, as the frac- Week’s AVG $1.7610 $1.8250 $2.4035 $1.0345 $0.3225 month on lower exports of lactose, tionally higher cheese price is Change (-0.0190) (-0.0306) (-0.0015) (-0.0111) (-0.0063) whey products, and other dairy offset by a lower dry whey price. Last Week’s $1.7800 $1.8556 $2.4050 $1.0456 $0.3288 products. The Class IV price forecast, now AVG The 2019 cheese and nonfat dry at $16.75 per hundred, reflects a 2018 AVG $1.3570 $1.5505 $2.2125 $0.7640 $0.4095 milk price forecasts are increased lower butter price. Same Week from last month, while butter The 2019 all milk price is and dry whey price forecasts are forecast higher than last month, MARKET OPINION - CHEESE REPORTER reduced. at $18.20 per hundred, but the The 2019 dairy product price all milk price forecast fr 2020 is Cheese Comment: A total of 11 cars of blocks were sold Monday, the last at forecasts are now as follows: slightly lower than last month, at $1.8400, which set the price. Six cars of blocks were sold Tuesday, the last at cheese, $1.6600 per pound; but- $18.85 per hundred. $1.8400, which left the price unchanged. On Wednesday, 3 cars of blocks were sold, the last at $1.8300, which set the price. There were no blocks sold on Thursday, ter, $2.3150 per pound; nonfat dry The US corn outlook is for and the price was unchanged. Three cars of blocks were sold Friday, the last at milk, $1.0200 per pound; and dry larger production and beginning $1.7850, which set the price. The barrel price declined Monday on an unfilled bid at whey, 37.50 cents per pound. stocks, greater feed and residual $1.7700 (following a sale at $1.7600), fell Tuesday on a sale at $1.7600, increased The 2020 cheese price forecast is use, lower food, seed and industrial Wednesday on an uncovered offer at $1.7675 (following a sale at $1.7700), then fell raised fractionally from last month, use, and increased ending stocks. Friday on a sale at $1.7400. to $1.7300 per pound, as demand is The season-average corn price Butter Comment: The price declined Monday on an uncovered offer at $2.3925, expected to improve, but the but- received by producers is lowered increased Tuesday on a sale at $2.3950, rose Wednesday on a sale at $2.4075, ter price forecast is lowered from 10 cents, to $3.70 per bushel. increased Thursday on a sale at $2.4100, and rose Friday on a sale at $2.4125. last month, to $2.3450 per pound. The 2019/20 season-average NDM Comment: The price declined Tuesday on a sale at $1.0375, fell Thursday The dry whey price forecast is price for soybeans is forecast at on a sale at $1.0300, and declined Friday on an unfilled bid at $1.0275 (following a also reduced from last month, to $8.40 per bushel, up 15 cents from sale at $1.0250. 36.0 cents per pound, as export last month, while soybean meal Dry Whey Comment: The price declined Monday on an uncovered offer at 32.50 prospects remain relatively weak. prices are forecast at $300 per short cents, fell Tuesday on a sale at 32.0 cents, then rose Wednesday on a sale at 32.25 The nonfat dry milk price forecast ton, up $5.00. cents.

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