Volume 37 August 18, 2017 Number 31

Dairy stakeholders praise FDA

Like us on Facebook and follow us on Twitter! ruling on UF milk use in cheese A WASHINGTON — Dairy stake- dairy ingredients specifi ed in enforcement discretion until it use this natural, concentrated holders are commending the the standards of identity. has completed its rulemaking form of milk in cheesemaking INSIDE leadership of FDA for granting UF milk is milk that has process or has decided not to with fl exible labeling restric- enforcement discretion for the been fi ltered to remove some proceed with the rulemaking. tions, and the decision will ✦ Half-year cheese use and labeling of ultrafi ltered of the water and lactose, which FDA also notes it is taking open the door for Wisconsin exports up 24 percent. (UF) milk in all standardized increases the protein content this action now due to issues re- and other states to produce For details, see page 3. cheeses and related cheese while reducing total fluid garding domestically-produced and market more fresh, UF products covered by the federal volume. The use of UF milk UF milk in the international milk to cheesemakers across ✦ WCMA launches internship standards of identity. increases effi ciency in cheese- marketplace that have resulted the nation. exchange to enhance FDA in Monday’s Federal making, enhances cheese yield in oversupply and pricing chal- “There’s been an oversupply industry workforce. Register announced the avail- for cheesemakers and allows lenges. of milk in the U.S. for over a year, For details, see page 5. ability of a guidance to advise for fewer trucks on the roads, Additionally, FDA has re- causing real fi nancial stress for manufacturers who wish to use which reduces transportation ceived requests to exercise dairy farm families,” he says. ✦ 10-year outlook shows UF milk or UF nonfat milk in costs. It is also responsive to enforcement discretion while “This decision can lead to more cheese prices rising the production of standardized many dairy consumers’ desire its rulemaking is pending, in production of fl uid ultrafi ltered over butter by 2026. cheeses and related cheese for environmentally-friendly part to mitigate the impact milk and fi nd new markets for For details, see page 7. products. In the guidance, FDA and sustainable production on U.S. companies producing our abundant milk supplies.” ✦ Cornell University, IBM says it intends to exercise en- practices, stakeholders say. UF milk. The dairy industry has been partner on next-generation forcement discretion regarding While FDA is encouraging FDA invites electronic or working with FDA for nearly sequencing for milk. the use and labeling of UF milk cheese manufacturers to iden- written comments on the guid- two decades to allow the use and UF nonfat milk in cheeses tify fl uid UF milk and fl uid UF ance at any time. Comments of UF milk in cheeses with a For details, see page 12. when used in addition to the nonfat milk on product labels may be submitted at www. federal standard of identity — when feasible and appropriate, regulations.gov. such as Cheddar, Mozzarella, FDA makes clear in its guidance The Wisconsin Cheese Colby and Brick, Umhoefer OF THE that it does not intend to take Makers Association (WCMA) notes. CHEESE action against companies that praised the announcement, “It’s more practical and MONTH do not declare these items noting the dairy industry has economical to ship this liquid, Photo courtesy on ingredient statements. been seeking approval for this fi ltered milk to cheesemakers, of WMMB Curds However, milk or nonfat milk natural dairy ingredient in other dairy manufacturers and still must be declared in the cheesemaking for nearly 20 even food processors in this Curds serve as signature ingredient statement. years. concentrated form,” he says. This guidance stems from a “FDA’s announcement is an FDA has allowed the use squeaky snack, ingredient proposed rule on the use of fl uid important win for Wisconsin of fl uid UF milk in standard- UF milk in cheese manufactur- and other great cheesemaking ized cheeses if the fi ltration ing that fi rst was issued in 2005 states,” says John Umhoefer, took place at the cheese fac- Editor’s Note: “Cheese of the Month” is Cheese Market News’ ex- but has not been completed executive director, WCMA. tory where natural cheese clusive profi le series exploring various cheese types. Each month, due to competing priorities. Umhoefer notes FDA’s deci- was made, and the agency has CMN highlights a different cheese in this feature, giving our readers FDA says it intends to exercise sion will allow cheesemakers to a comprehensive look at production, marketing, sales and in-depth Turn to UF, page 11 a aspects of each profi led cheese type. Please read on to learn about this month’s featured cheese: Curds.

By Stephanie Awe NAFTA renegotiation begins; Ballard Cheese named Champion MADISON, Wis. — Cheese curds are a beloved snack among many industry spotlights priorities consumers and are growing in popularity in some U.S. regions. Whether at IMPA contest fresh or fried, they serve a variety of snackable applications. WASHINGTON — Trade representatives from the United States, Typically, cheese curds are made from Cheddar cheese, although Canada and Mexico met this week to begin an offi cial renegotia- SUN VALLEY, Idaho — A they can be made from other cheeses such as Muenster and Brick, tion of the North American Free Trade Agreement (NAFTA). The Farmstead 8-month-old according to Mark Johnson, Ph.D., assistant director at the Wisconsin renegotiation provides the Trump administration with an oppor- Gouda made by Travis Bal- Center for Dairy Research (CDR). Curds made of Cheddar are created tunity to fulfi ll one of the president’s top campaign promises — a lard of Ballard Cheese LLC, through the same process used to make Cheddar cheese, but instead reset of the U.S. trade agenda. Gooding, Idaho, received of being formed and pressed into a cheese block, the curds are kept The talks, which will conclude Sunday, are taking place between Grand Champion honors at separate. In addition, all curds — no matter what cheese variety they chief negotiators John Melle, assistant U.S. trade representative the 2017 Idaho Milk Proces- are made from — must be produced using milled curd. for the western hemisphere; Ken Smith Ramos, director of the sors Association (IMPA) Cheddar curds typically are higher in moisture than Cheddar, and Trade and NAFTA Offi ce at the Embassy of Mexico in Washington; Dairy Product Contest. they are salted right away, Johnson says. While curds do not have a and Steve Verheul, chief trade negotiator for Canada. Mozzarella Fresca, soft standard of identity, curds with “Cheddar” on their labels must abide “We all agree that NAFTA needs updating,” U.S. Trade Rep- pouch, made by Marion by FDA’s federal regulations for Cheddar cheese, he adds. resentative Robert Lighthizer said in opening remarks this Bidron of Sorrento Lactalis Inc., Nampa, Idaho, was the Turn to CURDS, page 6 a week. “This is a 23-year-old agreement, and our economies are Turn to NAFTA, page 10 a Turn to IMPA, page 8 a © 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 2 CHEESE MARKET NEWS® — August 18, 2017 MARKET INDICATORS

Chicago Mercantile Exchange Cash prices for the week ended August 18, 2017 CHEESE FUTURES for the week ending August 17, 2017 (Listings for each day by month, settling price and open interest) Monday Tuesday Wednesday Thursday Friday Aug. 14 Aug. 15 Aug. 16 Aug. 17 Aug. 18 Fri., Aug. 11 Mon., Aug. 14 Tues., Aug. 15 Wed., Aug. 16 Thurs., Aug. 17 AUG17 1.660 3,577 1.665 3,554 1.662 3,552 1.663 3,529 1.663 3,513 Cheese Barrels SEP17 1.739 2,991 1.753 3,020 1.715 3,034 1.733 2,987 1.741 2,990 Price $1.6575 $1.6400 $1.6700 $1.6850 $1.7500 OCT17 1.764 2,458 1.770 2,461 1.733 2,482 1.740 2,485 1.752 2,490 Change +7 -1 3/4 +3 +1 1/2 +6 1/2 NOV17 1.758 2,608 1.758 2,614 1.736 2,620 1.741 2,646 1.745 2,632 DEC17 1.733 2,450 1.738 2,449 1.720 2,448 1.733 2,449 1.732 2,448 Cheese 40-lb. Blocks JAN18 1.711 948 1.718 981 1.710 989 1.710 989 1.714 991 Price $1.7550 $1.7250 $1.7350 $1.7350 $1.7550 FEB18 1.707 830 1.714 853 1.710 863 1.710 843 1.710 851 MAR18 1.710 782 1.712 834 1.703 845 1.706 845 1.705 845 Change +1 1/4 -3 +1 NC +2 APR18 1.702 699 1.703 697 1.694 709 1.696 709 1.700 713 MAY18 1.703 630 1.703 630 1.702 649 1.704 650 1.705 665 Weekly average (Aug. 14-18): Barrels: $1.6805(+.1255); 40-lb. Blocks: $1.7410(+.0475). JUN18 1.713 594 1.714 594 1.713 607 1.713 607 1.715 609 Weekly ave. one year ago (Aug. 15-19, 2016): Barrels: $1.8650; 40-lb. Blocks: $1.8220. JUL18 1.725 207 1.725 208 1.725 212 1.720 217 1.720 222 AUG18 1.728 139 1.729 151 1.729 151 1.729 161 1.730 166 Grade A NDM SEP18 1.734 110 1.734 120 1.734 130 1.730 135 1.732 140 $0.8500 $0.8475 $0.8475 $0.8375 $0.8325 OCT18 1.731 56 1.732 67 1.732 67 1.732 72 1.733 77 Price NOV18 1.732 57 1.732 58 1.732 58 1.732 63 1.732 68 Change NC -1/4 NC -1 -1/2 DEC18 1.730 57 1.730 58 1.730 58 1.730 63 1.730 68

Weekly average (Aug. 14-18): Grade A: $0.8430(-.0070). Total Contracts Traded/ Open Interest 140/19,193 427/19,349 375/19,474 478/19,450 361/19,488 Grade AA Butter Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. Price $2.6700 $2.6700 $2.6625 $2.6550 $2.6450 Change -1 1/4 NC -3/4 -3/4 -1 DRY WHEY FUTURES for the week ended August 17, 2017 Weekly average (Aug. 14-18): Grade AA: $2.6605(-.0075). (Listings for each day by month, settling price and open interest) Class II Cream (Major Northeast Cities): $3.3350(-.0525)–$3.6555(-.0572). Fri., Aug. 11 Mon., Aug. 14 Tues., Aug. 15 Wed., Aug. 16 Thurs., Aug. 17 42.500 688 Sign up for our daily fax or email service for just $104 a year. Call us at 608-288-9090. AUG17 687 42.500 688 42.750 687 42.825 688 43.100 SEP17 40.300 674 40.425 673 40.500 681 40.675 690 41.000 689 OCT17 39.975 496 39.975 496 39.600 493 39.475 497 39.475 497 NOV17 39.625 490 39.625 490 39.175 492 38.900 499 39.050 498 DEC17 39.825 478 39.825 478 39.325 476 38.900 480 38.900 480 JAN18 40.250 163 40.250 180 40.000 176 39.425 176 39.425 176 FEB18 40.300 167 40.300 167 40.000 172 39.400 186 39.400 186 MAR18 40.250 134 40.250 136 40.250 144 40.250 152 40.225 152 Weekly Cold Storage Holdings August 14, 2017 APR18 40.500 107 40.500 107 40.500 111 40.250 113 40.250 113 MAY18 40.500 96 40.500 96 40.500 96 40.250 103 40.250 103 On hand Week Change since August 1 Last Year JUN18 40.500 81 40.500 81 40.500 81 40.275 78 40.525 78 Monday Change Pounds Percent Pounds Change JUL18 41.000 21 41.000 21 41.000 21 41.000 26 41.000 26 Butter 34,222 -1,023 -1,156 -3 30,079 +4,143 AUG18 41.000 15 41.000 15 41.000 15 41.000 15 41.000 15 Cheese 108,613 -37 +1,413 +1 90,988 +17,625 SEP18 41.000 15 41.000 15 41.000 15 41.250 21 41.250 21 OCT18 41.000 14 41.000 14 41.000 14 41.250 16 41.250 16 (These data, which include government stocks and are reported in thousands of pounds, are based on reports from NOV18 41.000 14 41.000 14 41.000 14 41.250 14 41.250 14 a limited sample of cold storage centers across the country. This chart is designed to help the dairy industry see the DEC18 41.000 14 41.000 14 41.000 14 41.250 14 41.250 14 trends in cold storage between the release of the National Agricultural Statistics Service’s monthly cold storage reports.) Total Contracts Traded/ Open Interest 10/3,666 33/3,685 82/3,702 145/3,768 9/3,766 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.

CLASS III PRICE Dry Products* August 18, 2017 (Dollars per hundredweight, 3.5% butterfat test) YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2011 13.48 17.00 19.40 16.87 16.52 19.11 21.39 21.67 19.07 18.03 19.07 18.77 NONFAT DRY MILK 2012 17.05 16.06 15.72 15.72 15.23 15.63 16.68 17.73 19.00 21.02 20.83 18.66 Central & East: low/medium heat $.8500-$0.9400(-1); 2013 18.14 17.25 16.93 17.59 18.52 18.02 17.38 17.91 18.14 18.22 18.83 18.95 mostly $.8700-$.9200. 2014 21.15 23.35 23.33 24.31 22.57 21.36 21.60 22.25 24.60 23.82 21.94 17.82 high heat $.9950(-1/2)-$1.0500(-4). 2015 16.18 15.46 15.56 15.81 16.19 16.72 16.33 16.27 15.82 15.46 15.30 14.44 West: low/medium heat $.7925(-1/4)-$.9300; 2016 13.72 13.80 13.74 13.63 12.76 13.22 15.24 16.91 16.39 14.82 16.76 17.40 mostly $.8800-$.9100. 2017 16.77 16.88 15.81 15.22 15.57 16.44 15.45 high heat $.9800-$1.0650. Calif. manufacturing plants: extra grade/grade A weighted ave. $.9015(+.0067) based on 6,749,566 lbs.

WHOLE MILK POWDER (National): $1.4000-$1.7500(+5). STAFF SUBSCRIPTION INFORMATION Susan Quarne, Publisher Cheese Market News®, Publication #0598-030, (ISSN 0891- EDIBLE LACTOSE (PH 608/831-6002; FAX 608/288-9093) 1509), is published weekly by Quarne Publishing LLC, P.O. (FOB)Central and West: $.2200(-2)-$.4700; mostly $.3100-$.4000. email: [email protected] Box 628254, Middleton, WI 53562; Phone 608/831-6002; Kate Sander, Editorial Director FAX 608/288-9093. Periodicals postage paid at Madison, (PH 509/962-4026; FAX 608/288-9093) WI. Circulation records are maintained by Quarne Publishing LLC, P.O. Box 628254, Middleton, WI 53562. POSTMASTER: WHEY POWDER email: [email protected] Send address changes to Cheese Market News®, Subscriber Alyssa Mitchell, Central: nonhygroscopic $.3200-$.4900; Managing Editor Services, P. O. Box 628254, Middleton, WI 53562; Form (PH 608/288-9090; FAX 608/288-9093) mostly $.3400(-2)-$.4500. 3579 requested; or call direct at 608/831-6002. All rights West: nonhygroscopic $.3500-$.4600(-1/4); email: [email protected] reserved under the United States International and Pan- Rena Archwamety, Senior Editor American Copyright Conventions. No part of this publication mostly $.3800-$.4400. (PH 608/288-9090; FAX 608/288-9093) may be reproduced, stored in a retrieval system or transmitted (FOB) Northeast: extra grade/grade A $.3500-$.4675(-1/4). email: [email protected] in any form or by any means, mechanical, photocopying, Stephanie Awe, Assistant Editor electronic recording or otherwise, without the prior written ANIMAL FEED WHEY (Central): Whey spray milk replacer $.2600(-2)-$.4100. (PH 608/288-9090; FAX 608/288-9093) permission of Quarne Publishing LLC. Opinions expressed email: [email protected] in articles are those of the authors and do not necessarily UHÁHFWWKRVHRI4XDUQH3XEOLVKLQJ//&GED&KHHVH0DUNHW WHEY PROTEIN CONCENTRATE (34 percent): $.7100-$1.1000; REGULAR CONTRIBUTORS News®. Cheese Market News® does not endorse the products Creative Business Services, FCStone, International Dairy of any advertiser and does not assume and hereby disclaims mostly $.7525(-1 3/4)-$.9425. Foods Association, Eric Meyer, National Milk Producers any liability to any person for any loss or damage caused by Federation, Rice Dairy, John Umhoefer, U.S. Dairy Export errors or omissions in the material contained herein, regard- DRY BUTTERMILK Council, WOW Logistics, Edward Zimmerman less of whether such errors result from negligence, accident (FOB)Central & East: $.8600(+1 1/2)-$.9500(+2 3/4). ADVERTISING/SUBSCRIPTION ORDERS & INFO or any other cause whatsoever. Copyright 2017 by Quarne Publishing LLC. (FOB) West: $.8200-$.9600; mostly $.9100-$.9200. Contact: Susan Quarne - Publisher Subscriptions: $145 for U.S., second-class delivery; P.O. Box 628254, Middleton, WI 53562 IRU86ÀUVWFODVVGHOLYHU\LQFOXGLQJ&DQDGDDQG PHONE 608/831-6002 • FAX 608/288-9093 International rate to all others. Printed in U.S.A. CASEIN: Rennet $2.7000-$2.8500(+5); Acid $3.4000-$3.6000. WEBSITE: www.cheesemarketnews.com *Source: USDA’s Dairy Market News

DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions. © 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) August 18, 2017 — CHEESE MARKET NEWS® 3 NEWS/BUSINESS MARKET INDICATORS

Half-year cheese exports up 24 percent WASHINGTON — June U.S. dairy exports from a year earlier, while fi rst-half volumes were valued at $463.8 million, up 26 percent reached 309,175 metric tons, up 20 percent from a year earlier. This included 156,203 from the fi rst six months of 2016. Half-year metric tons of milk powder, cheese, butter- sales to Mexico were up 27 percent and fat, whey and lactose exports, up 5 percent shipments to China were more than double, from the aggregate volume in June 2016, USDEC says, offsetting declines in sales to according to the latest data reported by Southeast Asia, Pakistan and the Middle the U.S. Dairy Export Council (USDEC) East/North Africa region. and USDA. U.S. whey exports in June totaled 43,057 USDEC notes that U.S. dairy exports in metric tons, down 10 percent from June the fi rst half of the year were the most in 2016. Whey exports in the fi rst half totaled three years, led by record sales of nonfat dry 259,757 metric tons, up 12 percent from the milk/skim milk powder (NDM/SMP) and fi rst half of last year, USDEC reports. Sales whey products, and a 24-percent year-over- of dry whey, modifi ed whey and whey pro- year gain in cheese exports. On a volume tein isolate (WPI) all posted double-digit basis, the United States exported 950,291 gains in the fi rst six months of this year. For more information please visit www.devilletechnologies.com metric tons of dairy products (excluding USDEC notes total whey exports to fl uid milk) in the fi rst half of 2017, up 13 China in the fi rst half reached a record-high percent from the same period last year. 122,596 metric tons, up 43 percent versus Cheese export volumes in June totaled a year ago. Dry whey shipments to China CME FUTURES for the week ended August 17, 2017 30,542 metric tons, up 32 percent from a more than doubled, while sales of modifi ed year earlier, while cheese exports in the whey were up 36 percent and WPI exports Class III Milk* fi rst half reached 172,990 metric tons, up were up 38 percent. Meanwhile, whey Fri., Aug. 11 Mon., Aug. 14 Tues., Aug. 15 Wed., Aug. 16 Thurs., Aug. 17 24 percent. For the fi rst half of the year, exports to Southeast Asia were down 22 AUG17 16.47 5,026 16.50 4,925 16.45 4,939 16.47 4,880 16.50 4,904 SEP17 17.09 5,524 17.19 5,579 16.84 5,666 17.05 5,667 17.15 5,563 cheese shipments to South Korea were up percent and whey exports to South Korea OCT17 17.30 3,694 17.39 3,760 16.98 3,840 17.08 3,921 17.16 3,920 48 percent, while sales to Mexico (up 16 fell 23 percent in the fi rst half. NOV17 17.21 3,388 17.27 3,411 16.93 3,434 17.01 3,448 17.05 3,432 percent), Australia (up 68 percent) and On a total milk solids basis, U.S. exports DEC17 17.00 2,774 16.97 2,839 16.83 2,843 16.87 2,856 16.85 2,882 JAN18 16.68 1,038 16.71 1,057 16.64 1,058 16.62 1,059 16.61 1,052 Southeast Asia (up 66 percent) ran at a were equivalent to 14.3 percent of U.S. FEB18 16.65 928 16.70 934 16.67 935 16.67 936 16.63 948 record fi rst-half pace, USDEC reports. milk production in the fi rst half of 2017, MAR18 16.64 877 16.68 888 16.67 888 16.66 888 16.67 865 APR18 16.62 681 16.62 681 16.59 686 16.55 692 16.55 731 In June, NDM/SMP export volumes and imports were equivalent to 3.5 percent MAY18 16.65 634 16.65 639 16.61 640 16.61 644 16.61 647 totaled 45,777 metric tons, up 7 percent of production, USDEC reports. CMN JUN18 16.75 560 16.75 560 16.72 561 16.70 560 16.70 563 JUL18 16.80 252 16.87 266 16.87 270 16.84 289 16.84 289 AUG18 16.85 200 16.90 209 16.90 212 16.88 226 16.88 226 SEP18 16.85 183 16.90 190 16.90 193 16.88 212 16.89 221 International Dairy Markets August 18, 2017 OCT18 16.87 114 16.90 115 16.90 115 16.89 117 16.90 119 Total Contracts Traded/ Western Europe Open Interest 949/26,090 1,485/26,273 1,356/26,500 1,222/26,622 1,204/26,593 Butter: 82 percent butterfat $7,400(+200)-$7,950(+275). Class IV Milk* Butteroil: 99 percent butterfat $6,800(+400)-$8,800(+450). Fri., Aug. 11 Mon., Aug. 14 Tues., Aug. 15 Wed., Aug. 16 Thurs., Aug. 17 Skim Milk Powder: 1.25 percent butterfat $2,025(-25)-$2,200(-25). 16.67 463 16.67 Whole Milk Powder: AUG17 16.67 463 463 16.67 463 16.60 463 26 percent butterfat $3,700(+100)-$3,925(+125). SEP17 16.80 482 16.78 478 16.70 472 16.70 485 16.67 485 Whey Powder: Nonhygroscopic $1,025(+50)-$1,150(+50). OCT17 16.94 479 16.94 479 16.89 479 16.85 479 16.72 479 NOV17 17.10 390 17.10 390 16.95 390 16.95 390 16.75 392 Oceania DEC17 16.40 408 16.40 403 16.32 404 16.34 404 16.30 404 Butter: 82 percent butterfat $5,700(-50)-$6,650(+450). JAN18 15.83 146 15.82 150 15.82 154 15.82 154 15.82 154 15.81 160 Cheddar Cheese: 39 percent maximum moisture $4,000(+25)-$4,025. FEB18 15.81 155 15.81 162 15.81 162 15.81 162 MAR18 15.93 183 15.93 188 15.93 194 15.93 194 15.92 194 Skim Milk Powder: 1.25 percent butterfat $1,950(-50)-$2,000(-25). APR18 16.13 108 16.13 121 15.97 133 15.90 133 15.90 133 Whole Milk Powder: 26 percent butterfat $3,150(-25)-$3,250(-25). MAY18 16.29 98 16.29 111 16.23 126 16.19 126 16.09 126 JUN18 16.44 103 16.44 113 16.36 128 16.29 128 16.05 127 South America Total Contracts Traded/ Skim Milk Powder: 1.25 percent butterfat $2,650(-200)-$2,950(-200). Open Interest 37/3,059 124/3,100 107/3,149 41/3,162 31/3,163 Whole Milk Powder: 26 percent butterfat $3,150(+50)-$3,450(-50). Cash-Settled NDM* Source: Dairy Market News. Prices reported in U.S. dollars per metric ton, F.O.B. port. Fri., Aug. 11 Mon., Aug. 14 Tues., Aug. 15 Wed., Aug. 16 Thurs., Aug. 17

AUG17 87.225 973 87.200 971 87.200 971 87.200 969 87.200 971 SEP17 87.800 1,010 88.700 1,014 88.350 1,012 88.000 1,020 86.325 1,008 National Dairy Products Sales Report OCT17 89.050 667 89.250 684 88.000 720 88.000 718 86.500 740 NOV17 89.850 738 89.725 730 88.850 701 88.075 721 87.075 743 For the week ended: 8/12/17 8/5/17 7/29/17 7/22/17 DEC17 90.800 836 90.350 851 89.050 876 88.750 899 87.550 900 JAN18 91.375 529 91.375 536 90.150 547 89.900 553 88.500 568 Cheese 40-lb. Blocks: FEB18 92.375 368 92.025 370 91.250 375 90.825 392 89.750 409 Average price1 $1.7375 *$1.6822 $1.6226 $1.5907 MAR18 93.000 310 93.000 316 91.750 321 91.750 341 90.900 353 Sales volume2 10,981,870 *11,874,522 11,933,852 11,217,751 APR18 95.000 173 94.000 184 92.500 182 92.500 197 91.475 212 Cheese 500-lb. Barrels: Total Contracts Traded/ Average price1 $1.6360 *$1.5891 $1.5636 $1.5238 Open Interest 203/5,884 185/5,939 482/6,022 214/6,127 236/6,228 Adj. price to 38% moisture $1.5526 *$1.5113 $1.4863 $1.4489 Sales volume2 10,752,293 *11,520,371 10,948,267 9,233,624 Cash-Settled Butter* Moisture content 34.67 34.81 34.77 34.80 Fri., Aug. 11 Mon., Aug. 14 Tues., Aug. 15 Wed., Aug. 16 Thurs., Aug. 17 Butter: AUG17 267.025 1,111 267.500 1,107 267.000 1,107 267.000 1,110 265.025 1,117 Average price1 $2.6715 *$2.6457 $2.6475 $2.5866 SEP17 268.300 1,438 268.925 1,413 265.000 1,371 267.500 1,358 266.325 1,361 Sales volume2 5,438,204 3,949,627 2,164,100 4,279,573 OCT17 271.550 975 270.800 980 269.000 1,085 269.000 1,121 267.700 1,132 875 949 1,035 Nonfat Dry Milk: NOV17 272.050 874 272.000 269.975 922 270.000 268.600 DEC17 252.750 521 253.925 531 253.950 560 257.100 573 257.000 599 1 $0.8822 $0.8620 $0.8916 Average price $0.8854 JAN18 236.525 124 237.525 124 238.500 128 240.425 128 241.500 128 Sales volume2 13,166,262 *26,295,098 *18,700,471 *21,618,274 FEB18 236.025 60 236.025 60 238.025 57 239.025 58 241.000 58 Dry Whey: MAR18 235.525 41 235.525 41 236.525 42 238.425 42 239.025 42 Average price1 $0.4326 *$0.4373 $0.4489 $0.4393 APR18 233.525 28 233.525 28 234.825 31 236.725 33 237.525 33 232.250 30 236.425 30 239.025 30 Sales volume2 6,830,926 *6,269,225 6,475,846 8,287,589 MAY18 232.250 30 236.300 30 Total Contracts Traded/ */Revised. 1/Prices weighted by volumes reported. 2/Sales as reported by participating manufacturers. Open Interest 56/5,238 145/5,225 379/5,373 455/5,442 316/5,575 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. Reported in pounds. More information is available by calling AMS at 202-720-4392. *Total Contracts Traded/Open Interest reflect additional months not included in this chart.

DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions. © 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 4 CHEESE MARKET NEWS® — August 18, 2017 GUEST COLUMNISTS

companies face or soon will face this why the boss gives a promotion or a transition. How can family businesses larger job to the family member; it is a Perspective: survive and thrive this transition and justifi cation of a salary that is too high Industry Issues keep their proud tradition alive? for the qualifi ed experience level. This The fi rst step is to recognize that is a double whammy as the adult child Edward Zimmerman is president family businesses face problems that is in a job they are not competent in of The Food Connector, a sales and other businesses do not. The presence at a salary that they do not earn. No marketing company focused on of family members in the business cause regular business would overpay for a the needs of food manufacturers unique issues. Awareness of these issues less qualifi ed employee. The “talk in and distributors. He contributes is a critical fi rst step to avoid unneeded the offi ce” centers on these issues and this column exclusively for Cheese complications. Many of the problems frequently, resentments build. Market News®. center on the issue of legitimacy. An additional problem that also Sons, daughters and cousins enter the occurs is in the mind of the adult child company to learn the business and test is that some doubt their own ability. their ability to manage it. Non-related Floundering in a job for which an in- employees sometimes question the dividual is unprepared does not build effectiveness of these family members self-confi dence. If they truly are to take and, as a result, pay special attention to over the family business, self-confi dence their ability to get the job done. is the single most important trait they Survive family businesses Oftentimes, family members are need to succeed. The employees doubt hired or promoted to higher positions the family member’s ability and the Ninety-eight percent of the busi- dollars in start-up capital. Those busi- then their experience would warrant. person doubts their own ability. Ten nesses in America are small businesses. nesses that survived were passed to Employees and customers are suspi- years later they become the company Of these, a large majority are family- the next generation of family business cious and added pressure is placed president and it is not hard to see why owned businesses. Whatever your role entrepreneurs, the sons, daughters and on the family member to perform. so many of these businesses fail. in the cheese industry, you work with now grandchildren of those founders. Long-time employees fi nd themselves The solutions to these problems many family-owned businesses — As business founders retire, they managed by these blood relations and include job training and job sizing. The restaurant owners, food distributors, face several choices to ensure a suc- may be resentful that years of hard best training for family members is to equipment and supply providers and cessful transition. Some sell to larger work went unnoticed to give the boss’s work in a related business elsewhere. cheese producers. companies, others fi nance a sale to kid the promotion they really earned. The pressures on family members are The foodservice industry began after employees, still others merge, and sadly, In a related issue, pay and pay in- simply too great to overcome within the World War II. Many returning GIs had a few simply close their doors because creases sometimes are unjustifi ed in a family business environment. A cheese seen the world and came back ready they failed to plan for a transition. The family business. The boss’s daughter producer who sends his or her son or to conquer their own empire, that of owner of a family business has these is paid as much or more than senior daughter to work for a food distributor a small business. The 1950s and 1960s choices and one other; sell the busi- managers with greater experience. who sells cheese makes a smart long- were the formative years of our industry, ness to family members. A remarkable The boss tries to accomplish several term move for everyone. The adult child and many entrepreneurs began small statistic about family businesses is items in this scenario. The adult child learns the business in a natural environ- food companies as the barriers to entry that more than 80 percent fail in the is paid to do a job in the company but ment where they build a series of their were easy to overcome. They did not second generation. Due to the timing of the boss also wants to share family own wins. The now older, experienced need university degrees or millions of the rise of our industry, so many of our wealth. This “extra” pay is sometimes Turn to ZIMMERMAN, page 5 a

product. As a result, these American its efforts where they will best serve dairy foods will be going to 17 countries its membership, CWT has launched a Perspective: in fi ve regions of the world. strategic planning effort targeting the Industry Issues According to the U.S. Dairy Export program’s future. The purpose of this Council’s Global Dairy Market Outlook, effort is to ensure that CWT remains an Jim Tillison is COO of the milk production from the fi ve major effective program that is broadly sup- Cooperatives Working Together export market suppliers is expanding ported by dairy farmers and continues program. He is a guest columnist for again after a nine month period of growing U.S. dairy export sales. this week’s Cheese Market News®. contraction. The June 2017 Outlook Toward that end, in addition to says that with reasonable weather and reviewing existing policies and proce- the promise of input costs remaining dures, additional program options will low, the growth in milk production in be explored that could expand key U.S. regions the United States competes dairy product export sales in the years to with for world markets will be strong. come. The goal is for the plan to be pre- However, the Outlook goes on to say that sented to the program’s governing bodies the growth in world demand is “fragile.” later this year for further consideration A key to U.S. dairy’s position in the and possible implementation in 2018. world market is that the industry must Expanding milk production — both be perceived as a reliable, consistent here in the United States as well as by CWT: Creating opportunities supplier of dairy products to the 95 our competitors — combined with the percent of consumers who live outside potential for weaker global demand in for America’s farmers of the United States. In times past, the certain product categories makes the United States exported dairy products continued presence of CWT sales efforts The Cooperatives Working Together the program today focuses its efforts on when the domestic market could not in its targeted markets absolutely essen- (CWT) program of the National Milk developing and maintaining U.S. dairy utilize all the milk our dairy farmers tial for the remainder of 2017. In 2018 Producers Federation was developed farmers’ share of world dairy product produced. Today, it is critical for the and beyond, the CWT program must be in 2003 to give U.S. dairy farmers the demand through an ongoing and robust United States to be a dependable sup- ready to address changing U.S. industry opportunity to help themselves in deal- export assistance program. plier to its existing overseas buyers, and needs in maintaining and expanding ing with shifting market dynamics. At Through the fi rst six months of 2017, to develop additional markets among markets for the dairy products the world its beginning, CWT’s primary purpose CWT assisted member cooperatives in the growing middle class consumers marketplace wants. CMN was to provide mechanisms that would securing 239 cheese export contracts for in Asia, the Middle East, Africa and help to better align the demand for and a total of 37.7 million pounds of Ched- Central and South America. The views expressed by CMN’s guest supply of U.S. milk and dairy products. dar, Monterey Jack and Gouda cheese. To ensure that CWT will help make columnists are their own opinions Since those early days, that primary In addition, 16 butter contracts were that happen, and that the CWT export and do not necessarily refl ect those of purpose has remained unchanged and captured totaling 3 million pounds of assistance program continues to focus Cheese Market News®. © 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) August 18, 2017 — CHEESE MARKET NEWS® 5 NEWS/BUSINESS

WCMA launches internship exchange Conventional dairy ads decrease 2 percent to enhance industry workforce pipeline WASHINGTON — Total conventional earlier, AMS says, while 2-pound cheese dairy advertisements decreased 2 per- blocks had a weighted average advertised MADISON, Wis. — The Wisconsin guidelines, employers should expect to cent last week from the prior week, but price of $6.77, down from $7.06 one week Cheese Makers Association (WCMA) commit to an intern for a full semester conventional cheese ad numbers rose earlier but up from $5.97 one year ago. has launched the WCMA Internship Ex- (fall, spring or summer), offer structured 12 percent, says USDA’s Agricultural AMS says natural varieties of 8-ounce change, a program designed to enhance and supervised opportunities for learning Marketing Service (AMS) in its latest cheese shreds last week had a weighted the industry’s workforce pipeline. and be prepared to complete evaluations on weekly National Dairy Retail Report average advertised price of $2.15, down “With a national labor shortage the intern’s efforts for educational credits. released Aug. 11. from $2.19 one week earlier and $2.25 one looming, it’s important that employers Many internships also are paid positions, AMS says national conventional year earlier, while 1-pound cheese shreds do all that they can to attract talented due to U.S. Department of Labor guidelines. varieties of 8-ounce natural cheese had a weighted average advertised price workers,” says WCMA Executive Director “From test-driving talent to enhancing blocks last week had a weighted aver- of $4.13, up from $3.73 one week earlier John Umhoefer. “An internship program the perspective of your team, interns are age advertised price of $2.35, up from and $3.48 one year earlier. is a highly-effective tool for companies worthwhile investments,” Umhoefer says. $2.27 one week earlier and $2.17 one Meanwhile, national conventional trying to connect with future employees.” “And, given historically-low unemploy- year earlier. butter ads decreased 47 percent last The WCMA Internship Exchange will ment rates, our industry can’t afford not to Natural varieties of 1-pound cheese week, AMS says. Conventional butter in pair interested students with dairy product make concerted efforts to fi nd employees.” blocks last week had a weighted average 1-pound packs had a weighted average ad- manufacturers and processors and their Umhoefer notes a study from the advertised price of $4.15, up from $3.45 vertised price of $3.70, up from $3.57 one supplier partners in the following fi elds: National Association of Colleges and one week earlier and $3.35 one year week earlier and $3.23 one year ago. CMN production, machine operation, mainte- Employers found that approximately nance, packaging, quality assurance/food 67 percent of internships end with a safety, marketing, accounting and human full-time job offer, and that 76 percent Lawmakers introduce bill to cut food waste resources. WCMA is partnering with of those offers are accepted. WASHINGTON — U.S. Sen. Richard Blu- and by extending grant programs that the University of Wisconsin System, the To participate in the WCMA Intern- menthal, D-Conn., and U.S. Rep. Chellie educate students about food waste and Wisconsin Technical College System, and ship Exchange, contact WCMA Commu- Pingree, D-Maine, recently introduced recovery; the State of Wisconsin’s new WisConnect nications and Policy Manager Rebekah the Food Recovery Act in the House • Reduce wasted food throughout the program to build a prospective intern pool. Sweeney at 608-828-4550 or via email at and Senate. The bill seeks to reduce federal government through the estab- WCMA is now inviting members to in- [email protected]. Those food waste in stores and restaurants, lishment of a Food Recovery Liaison at dicate their interest in taking on interns. interested in an industry internship schools and institutions, on farms and USDA to coordinate federal efforts, and While detailed plans are available to help should visit www.WisCheeseMakers. in U.S. homes. by requiring companies that contract a company establish its own internship org to apply. CMN “This bill would address ineffi ciencies with the federal government to donate that lead to waste across all aspects of surplus food to organizations such as Dean Foods to close plant in Richmond, Virginia the food supply chain — curbing the 62 food banks and soup kitchens; million tons of food thrown out each year • Reduce wasted food going to RICHMOND, Va. — Dean Foods Co. is High Point and Winston-Salem, North in the United States,” Blumenthal says. landfills by encouraging composting closing PET Dairy, a fl uid milk process- Carolina, and its products will continue “Simplifying food date labeling and divert- as a conservation practice eligible for ing plant in Richmond, Virginia, as part to be available in that region. ing healthy, wholesome food from landfi lls support under USDA’s conservation of its companywide plan to consolidate “We regret the impact that this won’t just benefi t the environment — it programs; and operations, company offi cials say. result will have on our employees and will help alleviate food insecurity and • Reduce wasted food through re- According to Reace Smith, director our community,” Smith says. “The save consumers and businesses money. I search by directing USDA to develop new of corporate communications, Dean decision to eliminate jobs in any part urge my colleagues to join us and tackle technologies to increase the shelf life of Foods, production will be phased out of our business is never an easy one. the challenge of food waste with the fresh food, and by requiring USDA to es- over the next few months, and approxi- This move does not refl ect the quality multifaceted response it demands.” tablish a standard for how to estimate the mately 75 positions will be eliminated. of work performed by our employees, The bill would: amount of wasted food at the farm level. Smith says Dean Foods will continue but rather refl ects the need to remove • Reduce food waste at the consumer The legislation is supported by the to maintain signifi cant operations in redundancy in our operations.” CMN level through the inclusion of the Food Harvard Food Law and Policy Clinic, Date Labeling Act to standardize confus- the American Biogas Council, Recol- ing food date labels; ogy, Hungry Harvest, National Farmers • Reduce food wasted in schools Union, National Consumers League, Food by encouraging cafeterias to purchase Policy Action, the National Resources lower-price “ugly” fruits and vegetables, Defense Council and FoodCorps. CMN

ZIMMERMAN the experience, the pure vision and 3URFHVV7DQNV 6ZLVV'UDLQLQJ7DEOH &KHHVH%HOW&RQYH\RU enthusiasm. Complicate the matter 3RUWDEOH&UHDP7DQN &KHHVH)LQHV5HFXSHUDWRU Continued from page 4 with a parental relationship, and the risk of failure is great.  ˜`ÕÃÌÀˆiÃÊ`½
VˆiÀ family member returns to the family The lifeblood of the American ˜œÝÞ`>LiʏÌji business with real world experience capitalistic system is small business. earned on their own terms. Family busi- In terms of absolute numbers, small nesses often suffer from “tunnel vision” businesses dominate our industry. The  and the returning family member brings generation that began the modern food a fresh set of eyes. industry is retired or has plans to retire.   An entrepreneur generally starts Those of us left to carry on must support  a family business. The founder begins the viability of family-owned businesses.  with the vigor and vision of a revolution- If that class of trade does not survive, ary. That unstoppable energy creates many of us will wind up working for ,QQRYDWLRQ7HFKQRORJ\DQG4XDOLW\  the enthusiasm that new businesses one of a handful of giant corporations 6LQFH\HDUV rely on for survival. As the company where our own creativity and sense of evolves, the leader must become a bet- purpose may be less appreciated. Sup-  ter administrator and planner in order port family business and our industry to ensure the survival of the company wins. CMN   to the next generation. Entrepreneurs  fi nd it diffi cult to delegate and allow The views expressed by CMN’s guest ZZZJURXSHLDLFRP others to take responsibility. In his or columnists are their own opinions 2KPLF3DVWHXUL]DWLRQ8QLW &,3&RQWURO8QLW OE&KHHVH&XWWHU OE&KHHVH&XWWHU 7XEXODU+HDW([FKDQJHU 8OWUDVRQLF&KHHVHFXWWHU her mind, no one can do it better. In and do not necessarily refl ect those of some cases, they are right; no one has Cheese Market News®. For more information please visit www.groupeiai.com © 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 6 CHEESE MARKET NEWS® — August 18, 2017 CHEESE OF THE MONTH: Curds CURDS locations, the Great Lakes region sells 1980s, and to this day the cooperative the most, accounting for 59 percent. strives to continually innovate its curds. Continued from page 1 This is followed by the Plains region. Starting as a butter and powder plant Meanwhile, California and the West show before stepping into cheese produc- Curds usually are served fresh or the most growth, according to the data. tion, Ellsworth’s curds now continue breaded. When curds are breaded, a Cheddar is the top cheese curd to grow in popularity. The cooperative coating — such as a starch solution variety sold in both U.S. multi-outlet works with consultants on staff to — typically is applied to the outside and convenience stores, with Mozza- help ensure its curd fl avor profi les and of each curd so that the crumbs and rella and Farmer cheese varieties also characteristics meet customer needs. It spices stick before the curds are frozen placing high in multi-outlet stores and also strives to maintain a process that and fried, Johnson says. Monterey Jack ranking high in conve- produces a clean- and fresh-fl avored Fresh curds are known for producing nience stores (fi xed weight only, latest curd that allows for a shelf life of six or a squeak. According to a CDR study in 52 weeks as of July 16, 2017), the data more months, Bauer says, noting that which Johnson was involved, the protein says. In addition, plain curds have a the curds maintain their squeak in this in a fresh curd — casein — is tightly 70-percent share of volume sales, with time with a little care, although the the top fl avors falling mostly along the squeak is always best in a fresh curd. knit, connected by a high number of Photo courtesy of Tillamook calcium phosphate molecules. As teeth hot profi le, according to IRI. “We’re trying to be innovative within bite into the cheese, they compress the SQUEAKY, CREAMY, YUMMY — Tillamook Cheese curds especially see an in- our fi eld and with our product,” Bauer says. protein network and cause it to resist in Tillamook, Oregon, recently redesigned its crease in retail sales around the Fourth At Arena Cheese Inc. in Arena, Wis- and rebound, creating the character- curd packaging to align with the cooperative’s of July holiday, with other spikes occur- consin, the company offers traditional, istic squeak. more current brand look and feel. The new ring during Labor Day, Thanksgiving handmade Cheddar curds with a shelf As cheese ages, the acid in the cheese packaging also celebrates the product’s attri- and Christmas holidays as well as Super life lasting just days. While unfl avored from the cheesemaking process slowly butes — “squeaky, creamy, yummy” — so that Bowl Sunday, according to the data. is the company’s most popular curd breaks down the calcium phosphate consumers unfamiliar with cheese curds know • A variety of offerings variety, it also offers fl avors such as bonds, meaning the cheese eventually what they are getting, according to Tillamook. Various cooperatives and compa- Garlic and Herb, Dill, Vegetable, Cajun loses its squeak, the study says. nies offer curds but take different ap- and Buffalo Wing, along with other cus- In addition, proteolysis — the the protein molecules to interact more proaches to selling the cheese. tomized fl avors for customers, says Bill breakdown of protein — begins to oc- closely, recreating the curd’s ability to Ellsworth Cooperative Creamery, Hanson, vice president, Arena Cheese. cur because the rennet added during squeak, the study says. Ellsworth, Wisconsin, carries both fl a- The company offers curds in 12-ounce the cheesemaking process “attacks” • Retail sales vored and unfl avored Cheddar cheese Turn to TRENDS, page 7 a protein, Johnson says. This breakdown Annual cheese curd volume retail curds. In its own retail stores, Ellsworth eventually changes the structure in the sales were at 5.1 million pounds in the experiments with different varieties and cheese, which also causes the cheese latest 52 weeks as of July 9, 2017, which package sizes. It also distributes curds to lose its squeak, he says. was down 2.1 percent from last year for retail in Plain, Cajun, Taco, Garlic However, the squeak typically (total U.S. multi-outlet and convenience and Hot Buffalo in 1-pound, 2-ounce can be restored when the curds are stores, fi xed weight only), according to and 5-ounce sizes; and, for foodservice, refrigerated for up to two weeks and data from Information Resources Inc. it conducts direct distribution, shipping Schuman Cheese then heated for 15 seconds in the mi- (IRI)courtesy of Dairy Management Inc. whichever curd fl avors the customer spotlights trends crowave, according to the CDR study. Total U.S. sales, however, grew each year orders in 5- and 40-pound packages, says The study also examined frozen curds, from 2013 to 2016. Paul Bauer, CEO, Ellsworth Cooperative FAIRFIELD, N.J. — This week, freezing them for up to three months. Prices of cheese curds fl uctuate Creamery. Its curds are sold to customers Schuman Cheese rolled out a new The curd’s squeak returned after the throughout the year and were up 3 in all 50 states as well as internationally. resource through its website. A re- curd was frozen for up to three months percent in July from a year ago, with Ellsworth Cooperative Creamery’s search snapshot highlighting current and refrigerated for up to an additional an average price of $7.52 per pound, curds were a signifi cant factor in the consumer trends, including insights two weeks, and then heated up for 15 according to the IRI data. Wisconsin governor recognizing the on how those trends are impacting the seconds in the microwave. Warming When looking at cheese curd volume Village of Ellsworth as the “Cheese cheese industry now and into the future, the cheese in these situations forces sales over eight national geographic Curd Capital of Wisconsin” in the early is now available for download at www. schumancheese.com/news. The trends were identifi ed by ex- perts in the Schuman Cheese Innovation & Strategy Department, who analyzed a body of primary and secondary research THE STANDARD OF EXCELLENCE and statistical data to discern what these trends mean for the industry. The top trends identifi ed include: IN CHEESEMAKING SOLUTIONS 1. Transparency — Consumers want information beyond the more traditional or “expected” claims, such Cheese as natural or authentic. RELCO provides a wide variety of cheese making Vats 2. Simple selections — Consum- equipment and services for a comprehensive cheese ers want easier decision-making when plant design. Our cheese-technology experts will design choosing products in today’s market. ĂƉƌŽĐĞƐƐƚŚĂƚŝƐĐƵƐƚŽŵŝnjĞĚĨŽƌLJŽƵƌƐƉĞĐŝĮĐŶĞĞĚƐ͘ 3. Globalization — Consumers want a wider range of products and more diverse cultural and ethnic infl uences Block Cottage Draining/ Curd Tables Formersers Cheese Vats Salting Belts in their food choices. 4. Everyday artisanal — Consum- Horizontal Cheese Vats ers want broader availability for arti- 10,000 - 80,000 capacity sanal products, and everyday products featuring OptiSet that are more artisanal in nature. Technology 5. Millennial infl uence — Consum- ers want products that provide new USA | The Netherlands | New Zealand | Brazil | +1 320.231.2210 | www.relco.net experiences and opportunities to share. ® THE RELCO ADVANTAGE 6. Healthy meets indulgent © COPYRIGHT 2015 RELCO is a registered trademark and L-TECH is a trademark of RELCO, LLC. — Consumers want food that not only tastes great but has health For more information please visit www.relco.net benefi ts as well. CMN © 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) August 18, 2017 — CHEESE MARKET NEWS® 7 CHEESE OF THE MONTH: Curds TRENDS labor intensive, and producing larger that the customer will need to buy two potle ranch. A Tillamook cheesemaker volumes would require the company to bags, because one bag will be eaten on also suggests sprinkling curds with dill Continued from page 6 invest more in the process, Hanson says. their way home. to make them extra savory, Kempf adds. Meanwhile, Tillamook in Tillamook, Similarly, Kempf notes that Tillamook’s Bauer notes that Ellsworth’s curds retail packs and does bulk sales in bags Oregon, offers unbreaded yellow and cheese curd consumption has grown over are expected to become ingredients in between 10 and 20 pounds. white Cheddar curds that are made the past several years, due in part to their other products, such as smoked brats The company’s marketing strategy fresh in small batches several times alignment with snacking trends. and pizza applications. is built around freshness and, as such, per week, according to Abby Kempf, “Snacking, specifi cally wholesome, At the end of July and into early its curd sales are very localized, Hanson assistant category manager, Tillamook. protein-focused and on-the-go snack- August, Ellsworth conducted its fi rst says. The curds, made daily Monday Its curds are sold in Tillamook and are ing, is a continuing trend we see in the production run of breaded cheese curds through Friday, are mainly available available for online purchase. market. Cheese curds are the perfect using Hot Buffalo, Bold Buttermilk and in Arena Cheese’s retail store and are “Curds are best consumed fresh to solution for this occasion. It’s also a snack Beer Battered fl avors, which went “very sold through local farmers markets and get that signature ‘squeak,’” Kempf says. that appeals to all ages,” she says. “Addi- well,” Bauer says. With Ellsworth’s a couple of other distribution channels • Applications, trends tionally, the rising popularity of poutine primary targets for this product being that offer fresh curds. Whether fresh or fried, cheese curds in U.S. restaurants has likely broadened restaurants and foodservice chains, the Arena’s curds are a small portion have many utilizations. consumer awareness of curds.” cooperative distributed the curds dur- of the business; Hanson notes that the Curds, when fresh, traditionally are In addition, she says Tillamook staff ing the fi rst full week of August. company’s intent for its curds is to help served as a snack, Hanson says. Exem- suggest topping tomato soup with a few “We’re always looking to keep bring more people into its cheese store. plifying curds’ easy snackability, he says curds or coating them in tempura batter inventing new ways to meet our The company’s curds are handmade and Arena Cheese staff and customers joke and frying them before serving with chi- customers’ needs,” Bauer says. CMN NEWS/BUSINESS

OECD, FAO release 10-year ag outlook showing cheese prices rising over butter by 2026 ROME, Italy — Starting from a Mexico, Russia and others, and New As incomes and population increase On the import side, the currencies relatively low base in 2016, growth Zealand has reduced its WMP produc- and diets become more globalized, of most large importers — namely the in demand will support increases in tion while increasing production of more dairy products are expected to Philippines, Egypt, Iran and Indonesia dairy prices in the medium term, says a cheese in response to world demand. be consumed in developing countries. — are expected to depreciate, which recently-published 10-year agricultural Meanwhile, several factors created There are, however, significant will reduce their import demand, the outlook report from the Organization a challenging environment for the regional disparities among developing report adds. In Japan, import demand for Economic Cooperation and Devel- European Union (EU) dairy sector in countries, where fresh dairy products is constrained by an aging population, opment (OECD) and the Food and 2015, but this changed in mid-2016, will remain by far the most consumed; while in Canada the response is lim- Agriculture Organization (FAO) of the the report notes. this contrasts with developed coun- ited by the country’s domestic dairy United Nations. Both domestic and international tries, where consumer preferences policies. According to the report, “The OECD- cheese and butter consumption in- tend toward processed products, the Between 2017-2026, the export FAO Agricultural Outlook 2017-2026,” by creased. As the EU increased its pro- report adds. share of dairy commodities increases 2026, cheese prices — currently lower duction, exports of cheese and butter Meanwhile, the projected depre- for the EU, the report adds. India, the than butter prices — will surpass the grew while exports of SMP and WMP ciation over the medium term of the world’s largest milk-producing country, latter and be 38 percent higher than in decreased. Argentinian and Brazilian currencies has a large expanding domestic mar- the base period. Meanwhile, the price According to the report, there is with respect to the U.S. dollar will ket and is not projected to become an of milk powders is projected to increase renewed consumer interest in devel- encourage growth in exports from important player on the export market. slowly in the short term due to the slow oped countries for butter and dairy fat these countries as they become more For more information, visit recovery of powder demand from China. over substitutes based on vegetable oil. competitive, the report says. www.agri-outlook.org. CMN Even though they are not expected to return to the highs of 2013-14, prices of skim milk powder (SMP) and whole milk powder (WMP) will increase by 76 percent and 60 percent, respectively, between the base period (2017) and 2016, implying modest increases in real terms, the report says. The report notes that international dairy prices started to increase in the last half of 2016, with butter and WMP accounting for most of this increase. This reversed a decline in dairy prices that started in 2014 fol- lowing a decrease in Chinese demand and the Russian Federation’s ban on imports from several countries, as well as an increase in production from key exporters. The prices of other milk-based products, such as cheese and SMP, have increased more slowly but are expected to continue to increase through 2017, the report adds. In Oceania, milk production has Produce cheese with the amount of moisture you want Cut your curd with one stroke and don‘t and not with the moisture your cheese vat dictates... allow your cheese vat to produce fines … been limited, which has encouraged a renewal of dairy herds with younger, more productive cows, the report notes. Oceania’s dairy exports are slowly ALPMA USA | 3015 W Vera Ave | Milwaukee, WI 53209 | phone: 414 559 5961 | email: [email protected] | www.alpma.com recovering through higher exports to countries including Algeria, Indonesia, For more information please visit www.alpma.com © 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 8 CHEESE MARKET NEWS® — August 18, 2017 NEWS/BUSINESS

IMPA gan, Utah, Sharp White Cheddar, 96.40. Creamery Co., Sugar City, Idaho, Asiago Foods Inc., Sandpoint, Idaho, Blue Third: Maria Almanza, Glanbia Piacevole, 98.15. Veined Cheese, 95.75. Continued from page 1 Nutritionals, Blackfoot, Idaho, Colored Class 8: Soft/Semi-Soft Cheese Class 13: Swiss Cheddar, 95.95. First: Marion Bidron, Sorrento Lac- First: Team 3, Gossner Foods, Logan, fi rst runner-up, while an espresso and Class 4: Aged Cheddar — 12 to 24 talis Inc., Nampa, Idaho, Mozzarella Utah, Swiss, 99.80. Kelley Supply, Colby, lavender cheese made by Tim Welsh of months Fresca, soft pouch, 99.80. Chr. Hansen Wisconsin, purchased 16 pounds of this Beehive Cheese Co., Uintah, Utah, was First: Justin Searle, Glanbia Nutrition- Inc., Milwaukee, purchased 6 ounces of winning cheese for a total of $2,000. second runner-up overall. als, Twin Falls, Idaho, Aged Cheddar, 12 the fi rst runner-up for a total of $1,600. Second: Team 2, Gossner Foods-Mag- Contest judging took place Aug. 8 at the months, 97.70. Complete Filtration, Marsh- Second: Marie Solere, Sorrento Lac- ic Valley, Heyburn, Idaho, Swiss, 99.60. Glanbia Foods facility in Twin Falls, Idaho. fi eld, Wisconsin, purchased 40 pounds of talis Inc., Nampa, Idaho, Galbani Whole- Third: Gossner Foods-Magic Valley, Each class champion except manufactur- this winning cheese for a total of $1,800. Milk, Low-Moisture String Cheese, 99.70. Heyburn, Idaho, Swiss, 99.55. ing cheese was auctioned off at the Wine Second: Maryann Swinney, Glanbia Third: Dustin Becherer, Sorrento Lacta- Class 14: Farmstead and Cheese Social Aug. 10 during IMPA’s Nutritionals, Twin Falls, Idaho, Aged lis Inc., Nampa, Idaho, Low-Moisture, Part- First: Travis Ballard, Ballard Cheese annual conference in Sun Valley, Idaho. Cheddar, 12 months, 95.55. Skim Mozzarella String Cheese, 99.15. LLC, Gooding, Idaho, Farmstead This year’s auction raised a total of $27,000 Third: Team 3, Agropur-Jerome Cheese, Class 9: Spiced Cheese 8-month-old Gouda, 89.45. Nelson- for the IMPA scholarship fund, and the Jerome, Idaho, Aged Cheddar, 94.80. First: Ben Parlov, Glanbia Nutrition- Jameson, Marshfield, Wisconsin, remaining cheese was donated to charity. Class 5: Aged Cheddar — older als, Twin Falls, Idaho, Habanero Jack, purchased 20 pounds of the Grand The winning cheeses and auction than 24 months 99.60. Chr. Hansen Inc., Milwaukee, Champion for a total of $3,400. buyers in each class were as follows: First: Team 3, Gossner Foods, Logan, purchased 40 pounds of this winning Class 15: Artisan Class 1: Current Cheddar Utah, Aged White Cheddar, 99.20. DSM, Fer- cheese for a total of $2,000. First: Tim Welsh, Beehive Cheese Co., First: Phil Baringer, Glanbia Nu- gus Falls, Minnesota, purchased 3 pounds Second: Alex Sagapolutele, Glanbia Uintah, Utah, Cheese rubbed with espresso tritionals, Twin Falls, Idaho, Cheddar, of this winning cheese for a total of $1,900. Nutritionals, Blackfoot, Idaho, Chipotle and lavender, 96.20. Chr. Hansen Inc., 97.75. Nelson-Jameson, Marshfield, Second: Team 2, Gossner Foods, Lo- Cheddar, 99.50. Milwaukee, purchased 20 pounds of the Wisconsin, purchased 40 pounds of this gan, Utah, Aged White Cheddar, 98.80. Third: Vjekoslav Bampa, Glanbia Nutri- second runner-up for a total of $1,200. winning cheese for a total of $1,200. Third: Team 1, Gossner Foods, Lo- tionals, Twin Falls, Idaho, Pepper Jack, 99.40. Second: Manuel Montes/Donald Second: Team 3, Agropur-Jerome gan, Utah, Aged White Cheddar, 98.15. Class 10: Flavored Cheese Greenberg, Nelson-Ricks Creamery Co., Cheese, Jerome, Idaho, Current Ched- Class 6: Washed Curd Cheeses First: Sebastian Robert, Sorrento Sugar City, Idaho, Smoked White Goat dar, 97.15. First: Abel Navarreta Castro, Glan- Lactalis Inc., Nampa, Idaho, Fresh Cheddar, 93.85. Third: Steve Shobe, Glanbia Nutri- bia Nutritionals, Twin Falls, Idaho, Mozzarella Marinated, 99.70. ProActive Third: Travis Ballard, Ballard tionals, Twin Falls, Idaho, Cheddar, 96.60. Monterey Jack, 96.90. Evans Grain, Solutions USA, Dodgeville, Wisconsin, Cheese LLC, Gooding, Idaho, Garlic Class 2: Medium Cheddar Ogden, Utah, purchased 40 pounds of purchased 12 ounces of this winning Pepper Cheese Curds, 93.50. First: Team 1, Agropur-Jerome Cheese, this winning cheese for a total of $1,600. cheese for a total of $600. Class 16: Cultured/Cottage Cheese Jerome, Idaho, Medium Cheddar, 96.25. Second: Aaron Ondriezek, Glanbia Nu- Second: Rudy Jozelic, Glanbia Nutri- First: Jessie Cabrera, Darigold- Advanced Process Technologies, Cokato, tritionals, Twin Falls, Idaho, Colby, 96.90. tionals, Twin Falls, Idaho, Green Olive Boise, Boise, Idaho, Sour Cream Natu- Minnesota, purchased 40 pounds of this Third: Josue Medina, Glanbia Nutrition- and Pimento, 99.25. ral, 99.40. DuPont, Highlands Ranch, winning cheese for a total of $3,000. als, Twin Falls, Idaho, Monterey Jack, 95.35. Third: Jeff Stagg, Beehive Cheese Colorado, purchased 3 pounds of this Second: Tim Tomlinson, Darigold Class 7: Hard Italian Cheese Co., Uintah, Utah, Rosemary Promon- winning sour cream for a total of $1,200. Inc., Seattle, Medium Cheddar, 96.15. First: David Campbell, Utah State tory rubbed with rosemary, 99.25. Second: Raymond Tamayo, Darigold- Third: Thomas Chocker, Glanbia Nutri- University Dairy Product Lab, Logan, Class 11: Reduced Fat Boise, Boise, Idaho, 4 Percent Small tionals, Twin Falls, Idaho, Cheddar, 95.35. Utah, Parmesan Style Cheese, 98.75. First: Gabi Chavez, Sorrento Lactalis Curd Cottage Cheese, 99.25. Class 3: Sharp Cheddar University of Idaho, Moscow, Idaho, Inc., Nampa, Idaho, Reduced Fat Mozzarella Class 17: Butter First: Britton Welsh, Beehive Cheese purchased 23 pounds of this winning String Cheese, 99.80. DuPont, Highlands First: High Desert Milk, Burley, Co., Uintah, Utah, Promontory, 97.45. cheese for a total of $1,000. Ranch, Colorado, purchased 12 ounces of Idaho, 80 Percent Fat Unsalted Sweet Chr. Hansen Inc., Milwaukee, purchased Second: Donald Greenberg, Nelson- this winning cheese for a total of $1,200. Cream Butter, 99.10. Chicago Dairy, Lake 20 pounds of this winning cheese for a Ricks Creamery Co., Sugar City, Idaho, Second: Samir Zahirovic, Glanbia Forest, Illinois, purchased 55 pounds of total of $1,100. Asiago Piacevole, 98.25. Nutritionals, Twin Falls, Idaho, Reduced this winning butter for a total of $1,100. Second: Team 2, Gossner Foods, Lo- Third: Manuel Montes, Nelson-Ricks Fat Cheddar, 99.45. Second: High Desert Milk, Burley, Third: Norman Christensen, Dari- Idaho, Salted 80 Percent Fat Sweet gold-Boise, Boise, Idaho, 2 Percent Cream Butter, 99.00. Lowfat Cottage Cheese, 99.45. Class 18: Granular Cheese For Class 12: Open Class Manufacture First: Carrie Sargent, Gossner Foods, First: Codie Twitchell, Glanbia Logan, Utah, Garden Vegetable Cheese Nutritionals, Twin Falls, Idaho, Manu- Spread, 96.10. Nelson-Ricks Creamery Co., factured Cheddar, 99.80. Sugar City, Idaho, purchased 8 ounces of Second: Erin Rhodes, Glanbia Nu- this winning cheese for a total of $1,100. tritionals, Twin Falls, Idaho, Manufac- Second: Aaron Price, Sorrento tured Cheddar, 99.10. Lactalis Inc., Nampa, Idaho, Galbani Third: Teresa Scruggs, Glanbia Mascarpone Cup, 95.95. Nutritionals, Twin Falls, Idaho, Manu- Third: Marvin Sharp, Litehouse factured Cheddar, 99.05. CMN Spanish Sonrise Dairy recalls whole raw milk YACOLT, Wash. — Spanish Sonrise Spanish Sonrise Dairy raw milk dis- Dairy of Yacolt, Washington, is recalling playing a Best By date of Aug. 23 has been whole retail raw milk because it may be recalled. The product, which was bottled contaminated with E. coli. in half-gallon glass containers, was sold At this time, there are no known illness- directly to private customers and at one es associated with the recalled product. retail store in Washington state. The recall was initiated after routine Consumers who have purchased sampling conducted by the Washing- Spanish Sonrise Dairy raw milk with ton State Department of Agriculture a Best By date of 08-23 are urged not (WSDA) revealed the presence of toxin- to drink the product and return it to producing E. coli in raw cream processed the place of purchase for a full refund. from whole raw milk. Spanish Sonrise Consumers with questions may contact Dairy and WSDA continue to work jointly the company at 360-931-7283 between For more information please visit www.wowlogistics.com to address the source of the problem. the hours of 8 a.m. and 5 p.m. PDT. CMN © 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) August 18, 2017 — CHEESE MARKET NEWS® 9 PEOPLE EVENTS

Comings and goings … comings and goings INTL FCStone’s EU Dairy Outlook, Educational The International Dairy Foods marketing objectives, strategies and initia- Forum to be held Sept. 21-22 in Dublin, Ireland Association (IDFA) has promoted Cary tives. Mihelich began working at Wildeck DUBLIN, Ireland — Registration for changes and challenges to the dairy Frye to the position of senior vice presi- as a regional sales manager in April 1988. the annual INTL FCStone Ltd. EU Dairy industry, according to INTL FCStone. dent of regulatory affairs. In this role, Over the past 29 years, he has held posi- Outlook, to take place Sept. 21-22 in New this year is an option to attend the Frye will be responsible for managing the tions of sales manager of special accounts, Dublin, Ireland, is open. EU Dairy Educational Forum, which will of- association’s regulatory team covering installation manager and director of sales. This event will feature a comprehen- fer educational opportunities ranging from the areas of food safety, food defense, W.M. Sprinkman Corp. (WMS), a sive outlook of global dairy markets with a novice-level risk management overview to federal standards of identity, labeling, third-generation family business head- focus on the European market. Session more advanced topics, INTL FCStone says. international Codex Alimentarius stan- quartered in Waukesha, Wisconsin, that topics, some including panel discussions, For more information or to register, visit dards, nutrition policy, environmental provides sanitary, stainless steel process- will include a global dairy market outlook, http://intlfcstone.cvent.com/events/eu- and worker safety. Frye has served IDFA ing solutions for the dairy industry, has producer risk management, innovations dairy-outlook-educational-forum/event- member companies for nearly 20 years. announced three new hires. Troy Brown in the dairy futures market and a macro- summary-33484640bc8e43a280d14fcb Wildeck Inc., a material handling has joined the company as project manager. economic presentation focusing on major cfb1fa4c.aspx?RefID=Website. CMN equipment and safety products manu- Brown is a graduate of the University of Wis- facturer based in Waukesha, Wisconsin, consin-Milwaukee and the Keller Graduate has announced the promotion of Paul School of Management-Waukesha. Zach CWCBA annual golf outing to be held Sept. 19 Mihelich to the position of vice president, Eschenburg is now the company’s mechan- sales and marketing, for its Waukesha ical designer, and Chris Bendall also has MARSHFIELD, Wis. — The Central hour will be at 4:30 p.m., and the banquet and Goodyear, Arizona, operations. In been hired as mechanical designer. Both Wisconsin Cheesemakers and Butter- will begin at 5:30 p.m. this role, Mihelich will be planning Eschenburg and Bendall are graduates of makers’ (CWCBA) annual golf outing To attend the banquet and golf, and directing the company’s sales and Milwaukee Area Technical College. CMN will take place Sept. 19 in Marshfi eld, the cost is $125 per person. For those Wisconsin. looking to attend the banquet only, the Registration for the event begins at cost is $30 per person, organizers say. 10:30 a.m., and a shotgun start will be To participate, complete and return WMMB announces newly-elected offi cers at noon. There also will be a hamburger sign-up forms to Tayt Wuethrich, Grass- MADISON, Wis. — At the recent Wis- Peterson of Grantsburg, who will serve as and brat bar, according to organizers. land Dairy, P.O. Box 160, Greenwood, consin Milk Marketing Board (WMMB) chair, communications committee; Ken The scramble event will offer hole WI, 54437. For questions, contact annual reorganization meeting, WMMB Heiman of Marshfi eld, who will serve as prizes with a banquet to follow. Happy Wuethrich at 715-267-5183. CMN directors elected offi cers to lead the chair, channel management committee; organization through the next fi scal year, and Kay Zwald of Hammond, who will DPC to hold annual conference Nov. 7-10 which began July 1 and will conclude serve as chair, policy/bylaw committee. June 30, 2018, according to WMMB. In addition, David Bangart of Green- BUFFALO, N.Y. — The Dairy Practices In addition, a pre-meeting workshop Elected to serve as board chair was wood was elected to serve as chair of Council (DPC) will hold its 48th annual will be held Nov. 7 on good manufacturing Jeff Strassburg of Wittenburg. Dean the Center for Dairy Research (CDR) conference Nov. 7-10 in Buffalo, New York. practices and food safety, according to DPC. Strauss of Sheboygan Falls will serve as liaison committee. WMMB continues The event’s general session topics A tour of Yancey’s Fancy’s cheese plant also vice chair. Steven Sternweis of Marsh- to support the efforts of CDR through will include fl uid milk sales and other will be available in the morning Nov. 8. fi eld will be secretary, and Jay Stauf- funding, research, collaboration and economic trends, animal welfare pro- A full program and registration informa- facher of Darlington will be treasurer. technical support. grams, geographical indications and tion will become available Sept. 1. For more Also elected to serve on the seven- For more information, visit www. more, according to DPC. All six DPC task information, contact [email protected] person executive committee were Ben wmmb.com. CMN forces will meet during the conference. or visit www.dairypc.org. CMN CLASSIFIED ADVERTISING

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NAFTA between the countries. stronger trading partners.” its borders while using world markets as National Farmers Union (NFU) Meanwhile, NMPF this week re- a dumping ground for a huge increase Continued from page 1 President Roger Johnson this week leased a statement on comments that in its production,” NMPF adds. urged the Trump administration to Canadian Foreign Affairs Minister NMPF says while Canada has the very different than they were in the restore balanced trade and domestic Chrystia Freeland made in a speech right to choose its own domestic farm 1990s. We need to modernize or cre- sovereignty that have been traded away Monday. policies, it doesn’t have the right to use ate provisions which protect digital in past agreements, noting NFU has long In her speech, Freeland said her those policy tools to manipulate global trade and services trade, e-commerce, supported a transition to a fair trade country is committed to protecting its dairy markets to the benefi t of its dairy update customs procedures, protect framework. supply management system in NAFTA industry and the detriment of the rest intellectual property, improve energy “For decades, farming and rural negotiations, signaling Canada intends of the world’s dairy exporters. provisions, enhance transparency rules communities across the country have to take a hard line with the U.S. industry. “Regarding Minister Freeland’s and promote science-based agricul- suffered lost jobs, lowered wages, and “In her speech to Parliament today, comment that the United States should tural trade.” fl eeting economic liberty as a result of Canadian Foreign Affairs Minister be grateful that it sells more dairy The International Dairy Foods Asso- our nation’s free trade agenda,” John- Chrystia Freeland seems to want it products to Canada than it imports, ciation (IDFA) says maintaining the U.S. son says. “The Trump administration both ways — free trade with the this is hardly an example of a ‘good dairy industry’s export market in Mexico must use this opportunity to reset that United States in areas where Canada deal’ for farmers in the United States is the No. 1 priority for the organization agenda by instituting a new, fair trade is competitive, but high protectionist or consumers in Canada,” NMPF says. in the renegotiation. IDFA also has framework that works for family farm- walls when it comes to keeping out U.S. “Much of what the United States ex- pushed for the negotiators to use NAFTA ers, ranchers and rural residents. NFU dairy imports,” NMPF says. “Moreover, ports to Canada is ultimately shipped to address problems with Canada’s urges them to do so in a fashion that is Minister Freeland’s comments Monday back out under Canadian import for use of new milk pricing policies that transparent to the American public and about the dairy trade elements of the re-export programs. Canada has been undercut skim milk powder prices on does not upset the positive trade rela- upcoming NAFTA talks are completely refusing to share details of imports and the international market, to eliminate tions the U.S. agriculture community misleading.” exports under those programs, but the steep tariffs and to seek greater dairy relies upon.” NMPF says that for too long, Canada reality is that much of the dairy the market access to the country. The American Farm Bureau Federa- has relied on government controls on United States ships to Canada doesn’t IDFA says it will take full advantage tion (AFBF), The Canadian Federation farm milk production to boost prices, stay in Canada.” of any opportunities to engage with of Agriculture (CFA) and Mexico’s while minimizing dairy imports to NMPF notes the Canadian supply negotiators and the Offi ce of USTR to Consejo Nacional Agropecuario (CNA) limit competition. By comparison, the management program was basically ensure that the priorities of the U.S. this week sent a joint letter to Cana- United States has slashed its govern- ignored in 1993 when NAFTA was fi rst dairy industry are addressed as the dian, U.S. and Mexican government ment involvement in dairy markets, negotiated. talks progress. offi cials reiterating their calls that and relies on exporting its products to “As the next generation of NAFTA IDFA notes that in the 90-day period NAFTA re-negotiations should aim to global customers to a greater degree arrives, here’s hoping that Canada is since plans to negotiate the agreement modernize the agreement, rather than than ever before. fi nally ready to have its dairy sector play were announced, the organization has dismantle it. “That’s why the United States and by the same set of rules everyone else met with Lighthizer, congressional lead- AFBF, CFA and CNA agree that other major dairy exporting nations, has been operating under for years,” ers and senior members of the Trump agriculture represents one of NAFTA’s including Mexico and Argentina, are NMPF says. administration to stress dairy’s NAFTA biggest success stories. Agricultural so upset with Canada’s latest Class The current talks are just one of sev- negotiation priorities. IDFA also has reciprocal trade between the three 7 pricing scheme that is designed to eral planned by the U.S., Canadian and represented dairy in a USTR roundtable countries has grown exponentially since undercut world market prices and Mexican governments. IDFA expects discussion on NAFTA and trade policy; the agreement was implemented more unfairly dump Canada’s surplus milk the next talks to occur in September urged NAFTA negotiators to address than 20 years ago. at the expense of the United States in Mexico, but no dates have offi cially IDFA’s trade priorities in renegotiation In their discussions, the three presi- and other exporters,” NMPF says. been announced. talks; and submitted written testimony dents agreed on the need to build on the “Ironically, Canada’s so-called ‘sup- “Negotiators hope to conclude the to the Senate Agriculture Committee original agreement’s success by looking ply management’ system is failing talks by the end of the year,” says Beth that highlights dairy’s priorities in for ways to increase trade volumes. to manage supply. Despite having no Hughes, IDFA director of international NAFTA. “When it comes to overall positive domestic market for more milk solids, affairs. “This fast-paced goal means Michael Dykes, IDFA president and results for North America’s farmers and the government there has sharply in- IDFA will have several opportunities this CEO, joined leaders from the National ranchers, NAFTA has proved itself as a creased farm level production quotas, fall to provide input in the discussions.” Milk Producers Federation (NMPF) solid foundation for trade,” says Zippy resulting in an accompanying spike of Once an agreement is reached, the and the U.S. Dairy Export Council (US- Duvall, AFBF president. “Just as farm- almost 300 percent in Canadian milk United States will send it to Congress DEC) on a trip to Mexico in March to ers have new tools and technology for powder exports in 2017 so far. These for approval. Mexico will send the agree- reassure Mexican government offi cials food and fi ber production, we believe exports are only made possible because ment to their Senate for a vote. Canada of the U.S. industry’s commitment to that an updated NAFTA agreement can Canada manipulates domestic pricing is required to table it in its House of the existing strong trade relationship help the three nations become even through the Class 7 subsidy scheme. Commons for a minimum of 21 days for “Canada cannot be allowed to main- discussion, but no vote is required on the tain a system that establishes one of the agreement. Ratifi cation in Canada will highest milk prices in the world within then be handled by its Cabinet. CMN AUCTION GDT prices mostly lower at latest auction Date: Î On the Auction Block….. $ZDUGZLQQLQJFKHHVHLFHFUHDP AUCKLAND, New Zealand — The commodity and percent change from Time: EXWWHU\RJXUWVRXUFUHDPGLSVDQGRWKHU Global Dairy Trade (GDT) price index earlier this month are as follows: GDLU\SURGXFWVIURPWKH:RUOG'DLU\ fell 0.4 percent, and average prices • Anhydrous milkfat: US$6,199 per World Dairy Expo ([SR&KDPSLRQVKLS'DLU\3URGXFW &RQWHVW were mostly lower Tuesday following metric ton FAS ($2.8118 per pound), Alliant Energy Center the latest auction on GDT, Fonterra’s down 1.2 percent. Î $SRUWLRQRIWKHDXFWLRQSURFHHGVZLOO internet-based sales platform. • Butter: US$5,735 per metric ton EHXVHGWRIXQGDQXPEHURIVFKRODU Madison, WI VKLSV7KHVHVFKRODUVKLSVZLOOEH Buttermilk powder was not offered FAS ($2.6014 per pound), down 1.3 DZDUGHGWRVWXGHQWVSXUVXLQJ at Tuesday’s event. Average prices in- percent. MARK YOUR CALENDAR FDUHHUVLQWKHGDLU\LQGXVWU\ creased for Cheddar, up 1.4 percent to • Lactose: US$747 per metric ton You will receive your auction US$4,005 per metric ton FAS ($1.8167 FAS ($0.3388 per pound), down 4.9 invitation in the mail in early-September per pound); rennet casein, up 2.9 per- percent. cent to US$6,255 per metric ton FAS • Whole milk powder: US$3,143 per Support your customers… ($2.8372 per pound); and skim milk metric ton FAS ($1.4257 per pound), Support the Dairy Industry powder, up 0.3 percent to US$1,968 per down 0.6 percent. metric ton FAS ($0.8927 per pound). The next trading event will be Other average prices were lower held Sept. 5. For more information, For more information please visit www.wdpa.net Tuesday. The average prices for each visit www.globaldairytrade.info. CMN © 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) August 18, 2017 — CHEESE MARKET NEWS® 11 NEWS/BUSINESS

Idaho Milk Processors conference highlights Idaho dairy innovation, presents awards MERIDIAN, Idaho — This year’s Idaho This year, the competition saw presen- in ice cream or frozen yogurt products. Un- a contrasting color swirl clearly visible Milk Processing Association (IMPA) con- tations from South Dakota State Univer- like frozen yogurt, Tippy Cow is prepared once sliced. Being made entirely from ference Aug. 10-11 in Sun Valley, Idaho, sity, University of Idaho/Washington State from cultures that provide distinctive cheese, the contrasting colored layers knit featured the New Product Competition University, Brigham Young University and fl avors as well as probiotics. Toppings together to form a sliceable cheese chub. chaired by Reeds Dairy CEO and Idaho Utah State University. such as graham cracker crumble paired University of Idaho and Washington dairyman, Alan Reed. The grand prize Brigham Young University received a with apples and cinnamon can accentuate State University joined together to work winner of the competition was Brigham grand prize of $10,000. First runner up the ice cream’s fl avor. on their competition entry. GaBarZos is Young University. South Dakota State University received South Dakota State University’s entry, a gluten-free, dairy-based confectionary Supported in part by Dairy West and $5,000, and second runner up Utah “Moo Cha-Cha,” is a yogurt-based salsa made with garbanzo bean fl our, skim milk judged by dairy farmers and processors, State University received $3,000. The that combines the tartness of yogurt powder, butter and whey protein isolate. the IMPA New Product Competition chal- fourth-place Washington State University/ and the spiciness of salsa. Moo Cha-Cha The confectionary has a caramel center lenged universities with strong nutrition University of Idaho team received $2,000. includes cultured milk, milk protein and is enrobed with a yogurt coating. The and food science programs to create the Each student group also received a $1,000 concentrate, tomatoes, peppers, onions, center of the bar has a layer of caramel most promising new food product contain- travel stipend, as well as time to network spices, modifi ed cornstarch and xanthan made with sweetened condensed milk, ing dairy ingredients, according to IMPA. with industry leaders. gum. Moo Cha-Cha contains no added corn syrup, cream and butter. The yogurt “Each year, we are impressed by the Brigham Young University’s winning sugar, is lactose-free and provides protein coating is comprised of Greek yogurt and talent these students bring to this com- entry, Tippy Cow, is a cultured, full-cream and calcium. sugar. petition, and this year was no exception,” ice cream product made from a blend of Utah State University’s Mozzitwist is For more information, visit impa. Reed says. dairy cultures that are not currently used a swirled Mozzarella cheese slice with us. CMN Comfy Cow recalls ice cream varieties UF eration (NMPF) notes it previously has supported the use of fl uid UF milks in due to potential E. coli contamination Continued from page 1 standardized cheeses and views this development as a positive step forward. LOUISVILLE, Ky. — Ice cream maker Consumers who have purchased issued three exceptions to allow for “Although FDA’s announcement is The Comfy Cow is recalling several these products are urged to return the use of UF milk over the years. For considered ‘guidance’ and does not have varieties of ice cream pints due to a them to the place of purchase for a full example, in 2005, the agency allowed the full effect of a regulatory fi nal rule, potential contamination of E. coli. refund or they may discard the product. for the use of fl uid UF milk in Swiss it provides a strong sense of the agency’s On July 19, the fi rm was notifi ed Consumers with questions may contact cheese manufacture. current perspective on the issue,” says through internal fi rm product sample the production facility at 502-384-2556. Umhoefer says FDA’s announcement Jim Mulhern, president and CEO, NMPF. testing that pints of Banana Puddin This recall is being made with the means that UF milk can be brought in “The FDA announcement mentioned Y’all, Chocolate Squared2, Cookies and knowledge of FDA. as a natural dairy ingredient to make the impact of ‘recent changes in some Cream, Cow Trax, Double Fold Vanilla, “We took immediate corrective any natural cheese, provided that the export markets’ — a reference to the Georgia Butter Pecan, Intense Dark actions and tested clean with the physical, chemical and fl avor properties loss of U.S. ultrafi ltered milk exports to Chocolate, Salted Caramel and Straw- follow up inspection,” the company of the cheese are not affected. Canada. NMPF has been working with berry Fields Forever varieties were says on its website. “We voluntarily FDA’s discretion on labeling will give the U.S. Dairy Export Council, IDFA and either positive for E. coli or showed recalled the pints that were made cheesemakers the fl exibility to use or others in asking the Executive Branch high counts of coliform. for our retail stores. We have taken not use this ingredient without needing of the government to help remedy the No illnesses have been reported extra precautions to make sure that redundant packaging materials noting recent loss of UF exports. This an- to date. none of the voluntary recalled pint lot this milk ingredient, he adds. nouncement is a timely and welcome The products were distributed numbers are in the scoop shops. Again, The International Dairy Foods As- response to those efforts.” between June 13 and July 21, 2017. the safety of our loyal customers is our sociation (IDFA) also praised FDA’s To view the guidance, visit www. The products were packaged in pint fi rst priority.” announcement. fda.gov/Food/GuidanceRegulation/ containers and sold primarily in retail For more information on affect- “On behalf of our member compa- GuidanceDocumentsRegulatory stores located in Kentucky, Missouri, ed UPC codes, visit www.fda.gov/ nies, I would like to thank Scott Got- Information/ucm571090.htm. CMN Indiana and Tennessee. Safety/Recalls/ucm570565.htm. CMN tlieb, FDA commissioner, and Stephen Ostroff, M.D., deputy commissioner of food and veterinary medicine, for taking a common-sense approach to a long-standing regulatory burden on dairy foods companies,” says Michael Dykes, IDFA president and CEO. Dykes says FDA’s announcement will allow the cheese industry to use UF milk more widely and will stream- line the existing complex labeling requirements. This guidance will not affect the use and labeling of UF milk in fl uid milk and other dairy products, he notes. “Today’s action by FDA falls squarely within the philosophy of the current administration to reduce unnecessary regulatory burdens,” Dykes says. “After lagging for more than two decades, it is good to see the regulations on the use of UF milk are catching up with this safe and sustainable production technology, which is already used around the world.” IDFA says it will work with FDA as it accepts input on a fi nal rule that will allow the use of UF milk in all cheeses. The National Milk Producers Fed- For more information please visit www.ivarsoninc.com © 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 12 CHEESE MARKET NEWS® — August 18, 2017 NEWS/BUSINESS

Cornell University, IBM partner on next-generation sequencing to help keep milk safe ITHACA, New York — Cornell Uni- Ronald P. Lynch Dean of the College of genomics research, the Department for Food Systems faculty fellow at versity and IBM recently announced Agriculture and Life Sciences. “Bring- of Food Science anticipates this re- Cornell’s College of Agriculture and a new collaboration to help reduce ing Cornell into a private-public search collaboration with IBM can Life Sciences. safety breaches in the global milk sup- partnership with IBM, a world leader lead to exciting opportunities to apply For more information about ply through the use of next-generation in technology and innovation, has the fi ndings to multiple food products the Consortium for Sequenc- sequencing combined with bioinfor- potential to deliver transformative in locations worldwide,” says Martin ing the Food Supply Chain, visit matics. With this project, Cornell research in the area of food safety Wiedmann, Gellert Family Professor www.research.ibm.com/client- University has become the newest and health.” in Food Safety and Cornell Institute programs/foodsafety/. CMN academic institution to join the Consortium researchers will Consortium for Sequencing the Food conduct several studies comparing Milk donated by MMPA delivered to Supply Chain, a food safety initiative the baseline data of raw milk with that includes IBM Research, Mars Inc. known anomalies to help create Michigan food banks to aid summer need and Bio-Rad Laboratories Inc. proven models that can be used for Normally, raw milk samples are additional studies. They will continue LANSING, Mich. — In honor of stantly working toward solutions,” says tested for a few specifi c groups of to provide innovative solutions that the 50th anniversary of Kroger and Dr. Phillip Knight, executive director, bacteria. However, the Consortium for can potentially minimize the chance Michigan Dairy’s partnership with the FBCM. “MMPA’s donation puts us one Sequencing the Food Supply Chain is that a food hazard will reach the fi nal Michigan Milk Producers Association step closer to solving hunger and food using the microbiome to characterize consumer and provide a tool to assist (MMPA), 876,000 servings (54,750 gal- insecurity in Michigan.” the food samples at an unprecedented against food fraud. lons) of milk were donated to the Food “The dairy farmers of MMPA are resolution. By sequencing and analyz- The research project will collect Bank Council of Michigan (FBCM) in conscious of the need in Michigan ing the DNA and RNA of food microbi- genetic data from the microbiome of June. communities to provide nutrient-rich omes, researchers plan to create new raw milk samples in a “real-world” The milk was donated on behalf foods — like dairy products — to those tools that can help monitor raw milk to scenario at Cornell’s Dairy Processing of MMPA’s more than 1,100 farms and struggling with hunger,” says Ken Nobis, detect anomalies that represent food Plant and farm in Ithaca, New York. will span the whole year. Most of the dairy farmer and MMPA president. “Milk safety hazards and possible fraud. This initial data collection will form milk was processed by Prairie Farms in remains one of the most requested food “As a global leader in food safety a raw milk baseline and be used to Battle Creek, but Michigan Dairy also bank items. Therefore, we are proud to and dairy research, we are commit- further expand existing consortium processed the milk donated in their make a contribution to the Food Bank ted to using our multidisciplinary bioinformatic analytical tools. honor, according to MMPA. Council of Michigan to bring 876,000 expertise to secure the world’s food “As nature’s most perfect food, “One in seven people in Michigan servings of milk to food insecure families supply against harmful microbial milk is an excellent model for study- struggle with hunger, and we’re con- across the state this summer.” CMN contamination,” says Kathryn J. Boor, ing the genetics of food. As a leader in Raw milk recalled at K-Bar Dairy in Texas PARADISE, Texas — The Texas discard any milk they have on hand. Department of State Health Services However, because the dairy does not (DSHS) is working with K-Bar Dairy in have record of all customers, DSHS is Paradise, Texas, to recall raw, unpas- alerting the public about the recall. The teurized milk due to laboratory evidence department also has issued a health that it contains harmful bacteria. alert asking health care providers to be According to DSHS, a person who aware of possible Brucella infections in drank milk from K-Bar Dairy has been patients, to ask about the consumption hospitalized for an infection of a strain of raw milk if considering a Brucella of Brucella bacteria. The patient’s diagnosis and to order appropriate only known exposure is through the diagnostic testing. raw milk, and milk samples taken at Brucella can cause a range of the dairy also have tested positive for symptoms including fever, sweats, Brucella. headache, muscle and joint pain, loss DSHS also is investigating additional of appetite and fatigue. Less common illnesses that may be connected to symptoms include infl ammation of the this product and advising people who heart, swelling of the liver and spleen, consumed milk from the dairy since neurologic symptoms and in pregnant June 1 to consult with their health women, miscarriage, DSHS says. care provider. At this time, it is uncertain how K-Bar Dairy, which is cooperating long Brucella may have been present fully with the investigation, is contact- in the raw milk from K-Bar Dairy, DSHS ing customers and telling them to says, noting testing is ongoing. CMN WCMA website app features supplier events MADISON, Wis. — The Wisconsin their wastewater management, plant Cheese Makers Association (WCMA) de- operations and marketing,” says John buted Tuesday a feature on its website, Umhoefer, executive director, WCMA. www.wischeesemakers.org, aimed at “We want to amplify news of these edu- better connecting dairy processors with cational presentations from suppliers.” their supplier partners in the industry. WCMA supplier members interested Found on the website’s calendar in making use of this free tool can page, the new app lists supplier semi- send their event name, location, date nars, open houses, product demonstra- and time, and a brief description of its tions and other educational opportu- purpose to Rebekah Sweeney, commu- nities available to dairy processors, nications and policy manager, WCMA, according to WCMA. at [email protected]. “Suppliers to the dairy industry are To view this new feature, vis- doing more now than ever to provide it www.wischeesemakers.org and the information cheesemakers need click on the “Events” tab to vis- For more information please visit www.hadencustance.com to make smart choices regarding it the calendar page. CMN © 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected])