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y S Outshred Your Competition CHEESE REPORTER www.URSCHEL.com Vol. 144, No. 16 • Friday, October 4, 2019 • Madison, Wisconsin US To Impose 25% Tariffs On Cheese Production Rose 2.2% In August; Cheese, Dairy Imports From EU Cheddar Output Washington—The US has won tariffs being applied to imports butter substitutes, dairy spreads, Increased 3.3% what the Office of the US Trade from France, Germany, Spain, fats and oils derived from milk, and Washington—US cheese produc- Representative (USTR) is calling and the United Kingdom — the other products. tion during August totaled 1.11 the largest arbitration award in four countries responsible for the Since 2010, the value of US billion pounds, up 2.2 percent from World Trade Organization (WTO) illegal subsidies, the USTR noted. dairy imports from the EU has August 2018, USDA’s National history, and plans to impose tar- Although USTR has the author- ranged from $1.02 billion in 2010 Agricultural Statistics Service iffs on imports of cheese and other ity to apply a 100 percent tariff on to $1.7 billion in 2018. During the (NASS) reported Thursday. dairy products, among other things, affected products, at this time the first seven months of this year, the Cheese production during the from the European Union (EU). tariff increases will be limited to value of US dairy imports from the first eight months of 2019 totaled The WTO decision involves a 10 percent on large civil aircraft EU was $1.04 billion, up 10 per- 8.68 billion pounds, up 0.9 per- US dispute with the EU over ille- and 25 percent on agricultural and cent from the first seven months of cent from the first eight months gal subsidies to Airbus. This week’s other products. last year, according to figures from of 2018. WTO decision follows four previ- The list of products released by USDA’s Foreign Agricultural Ser- Regional cheese production in, ous panel and appellate reports the USTR is broken down into 15 vice (FAS). with comparisons to August 2018, from 2011 to 2018 finding that EU sections, several of which include US cheese imports from the EU was as follows: Central, 512 mil- subsidies to Airbus break WTO one or more dairy products. One during that same period ranged lion pounds, up 1.5 percent; West, rules. The award of $7.5 billion section describes products of Ger- from 212.8 million pounds in 2010 465.8 million pounds, up 3.8 per- annually is by far the largest award many, Spain, or the UK that are to 320.3 million pounds in 2016. cent; and Atlantic, 132.9 million in WTO history, the USTR noted. subject to additional import duties The EU remains of the view pounds, down 0.7 percent. The US will begin applying of 25 percent ad valorem; these that, even if the US obtains autho- August cheese production in the states broken out by NASS, with WTO-approved tariffs on certain products include whey protein rization from the WTO Dispute comparisons to August 2018, was: EU goods beginning October 18, concentrates (HTS subheading Settlement Body, opting for apply- Wisconsin, 290.5 million pounds, US Trade Representative Rob- 0404.10.05) as well as six catego- ing countermeasures now “would up 2 percent; California, 199.6 ert Lighthizer said. The US has ries of cheese (HTS subheading be short-sighted and counterpro- million pounds, down 5.7 percent; requested that the WTO sched- 0406). ductive,” said EU Trade Commis- ule a meeting on October 14 to Several other sections list a New Mexico, 90.5 million pounds, sioner Cecilia Malmstrom. up 20.2 percent; Idaho, 88.1 mil- approve a US request for autho- number of products from 25 EU “Both the EU and the US have lion pounds, up 14.8 percent; rization to take countermeasures member countries that are subject been found at fault by the WTO Minnesota, 59.8 million pounds, against the EU. to additional import duties of 25 dispute settlement system for con- down 2.3 percent; Pennsylvania, The tariffs will be applied to a percent ad valorem; these include tinuing to provide certain unlawful 35.7 million pounds, down 2.7 range of imports from EU mem- 48 categories of cheese, as well as percent; South Dakota, 30.7 mil- ber countries, with the bulk of the several categories of butter, yogurt, • See Tariffs On Cheese, p. 12 lion pounds, up 26.5 percent; Iowa, 27.5 million pounds, up 8.4 per- US Dairy Exports Per Capita Cheese Consumption Set cent; Ohio, 19.5 million pounds, down 9.6 percent; Oregon, 17.2 Rose 3% In August, New Record In 2018: 38.15 Pounds million pounds, down 0.8 percent; Vermont, 12.5 million pounds, up Washington—Per capita US ian cheese has risen by about Imports Increased 9.9 percent; Illinois, 6.7 million cheese consumption last year five pounds since 1998 and thus pounds, down 1.2 percent; and 17%; Cheese Exports was a record 38.15 pounds, up accounts for almost half (48.1 Fell, Imports Rose 0.91 pound from 2017 and the percent) of the per capita cheese • See Cheese Output Up, p. 6 eighth consecutive year in which consumption increase over the Washington—US dairy exports per capita cheese consumption past two decades. during August were valued at Sept. Avg Prices – 2019 vs 2018 set a new record high, accord- Within the Italian cheese cat- Average CME Prices** $487.1 million, up 3 percent from ing to figures released Monday egory last year, per capita Moz- Class 3 and Class 2 Milk Price x 10 August 2018, according to figures by USDA’s Economic Research zarella consumption totaled a $2.30 released today by USDA’s Foreign Service (ERS). record 12.15 pounds, up more Agricultural Service (FAS). Per capita cheese consumption than half a pound from 2017. Per $2.10 United States dairy exports dur- capita Mozzarella consumption has now grown by more than 10 $1.90 ing the first eight months of 2019 pounds since 1998, when it was has risen by about four pounds were valued at $3.86 billion, up 3 27.84 pounds, and has grown by since 1997, when it was 8.16 $1.70 percent from the first eight months almost five pounds since 2011, pounds. of 2018. when it was 33.24 pounds. By contrast, per capita con- $1.50 US dairy imports during August Last year, per capita consumption of Italian cheeses other $1.30 were valued at $266.9 million, sumption of Italian-type cheese than Mozzarella last year, at 3.49 up 17 percent from August 2018. reached a record 15.64 pounds, pounds, was down from 2018’s $1.10 During the January-August period, up more than half a pound from record of 3.51 pounds. Per cap- $0.90 dairy imports were valued at $2.09 2017 and the third straight year ita consumption of other Italian billion, up 8 percent from the same $0.70 in which per capita Italian cheese cheeses has increased by more 3 Class 2 Class Blocks** Barrels** Butter** NFDM** period last year. consumption topped 15 pounds. • See August Dairy Trade, p. 21 Per capita consumption of Ital- • See Per Capita Record, p. 8 Page 2 CHEESE REPORTER October 4, 2019

Past Issues Read this week’s issue EDITORIAL COMMENT or past issues of Growth in per capita consump- Cheese Reporter on tion of Hispanic cheese has actually your mobile phone or tablet by scanning this been more consistent over the past QR code. DICK GROVES 20 years than has growth even in Cheese Reporter Publishing Co. Inc. ©2019 per capita Mozzarella consumption ...And so we expect overall future 2810 Crossroads Drive, Suite 3000 Publisher / Editor Madison, WI 53718-7972 consumption growth to be driven (608) 246-8430 • Fax (608) 246-8431 Cheese Reporter in part by continued growth in His- http://www.cheesereporter.com e: [email protected] panic cheese consumption. DICK GROVES tw: @cheesereporter Publisher/Editor e-mail: [email protected] 608-316-3791 Sky’s The Limit For Per Capita Cheese Consumption In US MOIRA CROWLEY USDA’s Economic Research Ser- ian cheeses will resume its upward at the IDF World Dairy Summit in Specialty Cheese Editor e-mail: [email protected] vice on Monday released detailed trend sooner rather than later. Istanbul, Turkey. 608-316-3793 per capita cheese consumption Meanwhile, per capita Swiss That report (available for pur- KEVIN THOME statistics for 2018, and these sta- cheese consumption (this category chase at www.idf-fil.org) includes, Advertising & Marketing Director tistics certainly paint a pretty rosy includes imported Emmenthaler among many other things, an eye- e-mail: [email protected] picture of per capita consumption and Gruyere) last year, at 1.08 opening table showing per capita 608-316-3792 growth in recent years. And these pounds, was at its highest level cheese consumption for roughly BETTY MERKES Classifieds/Circulation Manager and some other statistics point to since 2012 (1.09 pounds), but well four dozen countries, ranging from e-mail: [email protected] some pretty nice potential for fur- below where it was back in 2007 European Union member coun- 608-316-3790 ther growth in the years ahead. (1.24 pounds). Like the other Ital- tries to China and South Korea. REGULAR CONTRIBUTORS: As reported on our front page ian cheese category, per capita con- What the table shows is that, Jen Pino-Gallagher, Bob Cropp, Neville this week, per capita cheese consumption of Swiss cheese has had while US per capita cheese con- McNaughton, Dan Strongin, John Umhoefer sumption is pretty impressive com- You can e-mail our contributors at: sumption last year was a record its ups and downs over the years, [email protected] 38.15 pounds, up almost a full but could experience nice growth pared to some well-known dairy pound from 2017’s record and up just be getting back to where it was countries — such as New Zea- The Cheese Reporter is the official almost four and a half pounds just a little over a decade ago. land, at 22.2 pounds; Australia, at publication of the following associations: from 2013. Two other categories broken 30.8 pounds; and Canada, at 31.9 California Cheese & Butter Association That’s a pretty impressive out by ERS were unchanged last pounds — it still has a heck of a Lisa Waters, 1011 Pebble Beach Dr, Clayton, CA 94517 increase in a very short time period. year, Cream and Neufchatel, and long way to go to catch a few of the To put it in a bit of historical per- “other.” Both categories are below leading countries. Central Wisconsin Cheesemakers’ and Buttermakers’ Association spective, from 2000 to 2012, per their record highs of 2.61 pounds Leading the pack in the IDF Jim Mildbrand capita cheese consumption grew by for Cream/Neufchatel and 1.59 report’s table is Denmark, with per [email protected] about 3.7 pounds, or about three- pounds for “other,” so it would capita cheese consumption last Cheese Importers Association of America quarters of a pound less than the seem at least possible that we could year of an astounding 63.6 pounds, 204 E St. NE, Washington, DC 20002 gain from 2013 through 2018. see growth in both of these catego- or more than 25 pounds per year Eastern Wisconsin Cheesemakers’ and While those gains are certainly ries in the near future. higher than the US. In other Buttermakers’ Association Barb Henning, Henning’s Cheese nice, a closer look at the statistics Finally, we can’t help both note words, Danes consume more than 21812 Ucker Road, Kiel, WI 53042 shows that per capita consumption that per capita consumption of a pound of cheese per week or, International Dairy-Deli-Bakery Association increases last year weren’t achieved Hispanic cheese set yet another looked at another way, Danes con- 8317 Elderberry Road, Madison, WI 53717 by all the categories broken out by new record last year, at 0.88 pound. sume more than half a pound more Missouri Butter & Cheese Institute ERS, nor did all categories set new Per capita consumption of His- cheese each week than Americans Terry S. Long, 19107 Factory Creek Road, records last year. panic cheese has more than tripled do. That’s pretty impressive. Jamestown, MO 65046 Perhaps most noteworthy is the since 1996, when it was just 0.25 But Denmark isn’t the only Nebraska Cheese Association fact that per capita consumption pounds, and has increased every country in which per capita cheese Ed Price, Fremont, NE 68025 of Italian cheeses other than Moz- year this century, with the excep- consumption tops one pound per New York State Cheese Manufacturer’s Assn zarella actually declined slightly tions of 2008, when consumption week. Other countries in the IDF Kathyrn Boor, 11 Stocking Hall, Cornell University, Ithaca, NY 14853 last year, to 3.49 pounds, from was unchanged from 2007 at 0.61 table that top that consumption 3.51 pounds in 2017. This cat- pound, and in 2012, when con- level include Germany, France, North Central Cheese Industries Assn Lloyd Metzger, SDSU, Box 2104, egory includes Parmesan, Provo- sumption of 0.67 pound was down Netherlands, Finland, Estonia, Brookings, SD 57007 lone, Ricotta, Romano, Asiago from 0.69 pound in 2011. Cyprus, Luxembourg and Iceland. North Dakota Cheese Makers’ Assn and other Italian cheeses. Growth in per capita consump- So what does this tell us about Chuck Knetter, Medina, ND 58467 Over the past couple of decades, tion of Hispanic cheese has actu- growing per capita cheese con- Ohio Swiss Cheese Association per capita consumption of other ally been more consistent over the sumption? For one thing, it would Lois Miller, P.O. Box 445, seem to indicate that having a long Sugar Creek, OH 44681 Italian cheeses has generally past 20 years than has growth even trended upward, having been just in per capita Mozzarella consump- history of cheese traditions helps; South Dakota State Dairy Association Howard Bonnemann, SDSU, Box 2104, 2.14 pounds back in 1995. Indeed, tion (which declined by more than cheeses such as France’s Comte Brookings, SD 57007 after reaching a record 3.16 pounds half a pound from 2007 to 2008, have been around for several hun- Southwestern Wisconsin in 2011, per capita consumption and also fell in 2009, 2012 and dred years longer than the US has. Cheese Makers’ Association of other Italian cheeses declined 2017). And so we expect overall It also indicates that patience Myron Olson, Chalet Cheese Coop, for three straight years, then future consumption growth to be is a virtue; back in 2001, of the N4858 Cty Hwy N, Monroe, WI 53566 rebounded by almost half a pound driven in part by continued growth countries noted above, only France Wisconsin Association for Food Protection in just three years to reach a record in Hispanic cheese consumption. had per capita cheese consumption Bob Wills PO Box 620705, Middleton WI 53562 high in 2017. The other statistics that point above one pound per week. The Wisconsin Cheese Makers’ Association Given the wide variety of high- to further growth in US per capita US won’t get there in 2019, but John Umhoefer, 5117 W. Terrace Dr., quality products available in a diz- cheese consumption in the future maybe will someday. Suite 402, Madison, WI 53718 zying array of packaging formats come from the International Dairy Cheese Reporter welcomes letters to the Wisconsin Dairy Products Association these days, it would seem that per Federation’s World Dairy Situation Brad Legreid, 8383 Greenway Blvd., editor. Comments should be sent to Dick Middleton, WI 53562 capita consumption of other Ital- 2019, which was released last week Groves, at [email protected].

CHEESE REPORTER (Publication Number: ISSN 0009-2142). Published weekly by Cheese Reporter Publishing Co. Inc., 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-7972; Phone: (608) 246-8430; Fax: (608) 246-8431. Subscriptions: $140.00 per year in USA; Canada and Mexico: $195.00 per year; other foreign subscribers, please write for rates. Advertising and Editorial material are copyrighted material. Any use without publisher’s consent is prohibited. Cheese Reporter does not endorse the products of any advertiser or any editorial material. POSTMASTER: If undeliverable, Form 3579 requested. Periodicals postage paid at Madison, WI. Address all correspondence to: Cheese Reporter, 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-7972 October 4, 2019 CHEESE REPORTER Page 3

 FDA’s approach to imple- 2016, the majority of companies FDA Launches Food Safety Dashboard menting the FSMA rules has inspected are in compliance with To Track Impact Of Seven FSMA Rules been to “educate before and while the new requirements of the pre- we regulate.” The agency con- ventive control rules, according to Silver Spring, MD—The US Food human and animal food. The dash- ducts interactive inspections that a statement from Ned Sharpless, and Drug Administration (FDA) board will be updated periodically emphasize education and bring acting FDA commissioner, and has established a “Food Safety with metrics for “Days from Recall industry into compliance, while Frank Yiannas, deputy FDA com- Dashboard” designed to track the Initiation to Firm Press Release to focusing enforcement actions on missioner for food policy and impact of the seven foundational the Public.” safety problems that pose a threat response. Additional FDA data rules of the Food Safety Modern- Many factors will influence the to public health. also show that, overall, industry ization Act (FSMA), measure their interpretation of the data, espe- Taking into account these fac- has improved the time it takes progress, and help the agency con- cially in the early phases of FSMA tors, considering the changing sizes to move from identifying a recall tinue to refine its implementation. implementation. For example: of businesses subject to these regu- event to initiating a voluntary On Monday, FDA announced  The preventive controls and lations as the regulations become recall, from an average of four days the availability of the initial met- FSVP rules featured staggered effective, and the changing regula- in 2016 to approximately two days rics that begin to track outcomes compliance dates based on busi- tory approach from educational to in 2019. for three FSMA rules in the areas ness size to allow smaller businesses more regulatory, FDA expects that “In fact, comparing the FSMA of inspections, including the pre- more time to comply. it will take several years to estab- data with our recall data shows the ventive controls rules for both  FDA does not inspect the lish meaningful trends to evaluate bigger picture, demonstrating the human food and food for animals, same firms on a quarterly or annual progress toward achieving the per- effectiveness of preventive mea- as well as imported food safety, basis, so these inspection results do formance goals presented on the sures as food recalls once again including data relevant to the For- not represent a consistent cohort dashboard. have reached a five-year low,” eign Supplier Verification Program of firms. The initial data show that, since Sharpless and Yiannas added. (FSVP) rule. The preventive controls for human food rule requires preventive controls for food facilities aimed at reducing foodborne contamination (i.e., with physical, chemical and biological hazards). Facilities subject to the rule are required to implement a written food safety plan that includes: evaluating the hazards that could affect food safety; specifying what preventive steps, or controls, will be put in place to significantly minimize or prevent the hazards; specifying how the facilities will monitor and verify these controls to ensure they are working; maintaining routine records of the monitoring and verification; and specifying what actions the facility will take to correct problems. Facilities subject to the preventive controls rule must have and implement a risk-based supply- chain program if the hazard analysis identifies a hazard that: requires a preventive control, and the control will be applied in the facility’s supply chain. Over time, the Food Safety Dashboard will be populated with additional data to show more FSMA outcomes. All FDA-regulated products imported into the US are required to meet the same laws and regulations as domestic food. The current data on inspections provide a snapshot into both domestic and foreign industry compliance with these regulations. FDA is also measuring the effectiveness of oversight of foreign suppliers by US importers. This will be tracked through the classification of FSVP inspections. FDA recognizes that the prevention-oriented system that FSMA created is not failproof. With this in mind, the agency is also track- ing the speed of the response to problems when they do arise. One of the metrics FDA is beginning to track on the dashboard is how quickly a company issues public notification for a Class 1 recall, the most urgent type of recall, for For more information, visit www.tetrapakusa.com Page 4 CHEESE REPORTER October 4, 2019

A little know-how and a bit of WCMA PERSPECTIVES seed money can go a long way. Consider Paul and David from our Rebekah Sweeney Scharfman of Specialty Cheese Communications and Policy Manager Company. In 2018, they cracked Wisconsin Cheese Makers Association the code to successful marketing of archives [email protected] their baked cheese snack, Just the Cheese, on Amazon.com, leading 50 YEARS AGO to a sales boost of more than $3.5 Oct. 3, 1969: Washington— Innovation Is Key To million. Ten congressmen have added Chris Renard of Renard’s their names to a bill that would Dairy Growth Cheese recently added smaller- extend to dairy manufacturers size wheels of cheese to his array indemnity payments for milk Volatile international markets, a priations bill, which could hold up of specialty offerings to appeal to products found to contain pesti- critical labor shortage, and ever- to $20 million for the three initia- foodies hungry for variety, and cide residues. Similar indemnity shifting consumer trends have cre- tives in 2020. they’re a hit. payments have for some years ated a challenging environment CDR and WCMA will use half Looking to add value to their been provided to dairy farmers for US dairy processors eager for of funds awarded to support low- operations, Hoard’s Dairyman whose milk must be removed growth. or no-cost workshops and direct Farm unveiled a creamery line of from commercial markets because The plight of our partners in technical assistance for dairy farm- Port Salut- and Camembert-style it contains residues of chemicals industry is, perhaps, more dire. ers, manufacturers, processors, and cheeses in 2018, to much excite- approved by the federal govern- Five years of low milk prices led marketers. The other half will be ment not only for consumers, but ment. nearly 3,000 US dairy farms to fold redistributed throughout Illinois, also for the cheese makers with in 2018. In just the first half of this Iowa, Minnesota, South Dakota, whom Hoard’s works. Earlier this Bismarck, ND—The annual year, in Wisconsin alone, 449 dairy and Wisconsin in small, direct-to- year, after more than a century in meeting of the North Dakota farms were lost. business grants. the Limburger and Swiss business, Cheese Makers Association took Economists, politicians, inves- This week, the Wisconsin Joint Chalet Cheese Cooperative devel- place here this week, with mem- tors, optimists and pessimists alike Finance Committee approved oped and launched a brand-new bers electing James Winger of try to predict when the tide will nearly $9 million in funding for the cheese called Le’Bec. the Winger Cheese Company, turn for US dairy, but only time creation of a new Dairy Innovation This past year, Ponderosa Dairy Towner, to serve as director for will tell. Hub. This program will support Products beefed up its marketing the next three years. We can be far more certain of the University of Wisconsin Sys- team and invested in brand adver- the catalyst for greater profitability tem in attracting world-class dairy tising. It also adjusted packaging 25 YEARS AGO and progress: innovation. researchers, tasked with discover- to increase product shelf life by 50 Sept. 30, 1994: Madison—The In September, the Center for ing new value-added products and percent. Combined, these changes recommended replacement of Dairy Research (CDR) and Wis- farming techniques focused on effi- led to increased distribution, and the Minnesota-Wisconsin price consin Cheese Makers Associa- ciency and sustainability. Monies a 15 percent increase in sales vol- does nothing to correct the tion (WCMA) were awarded a US will also support new educational ume. problem of using the M-W price Department of Agriculture grant opportunities for our industry at From product development to as the federal order basic formula worth more than $450,000 to UW-Madison, UW-Platteville, savvy marketing campaigns, all price, which places an economic launch the Dairy Business Innova- and UW-River Falls. sorts of innovation offer dairy pro- penalty on Upper Midwest milk tion Alliance, one of three initia- We thank Wisconsin Senator cessors and their farmer partners processors and producers, UW- tives across the country designed to Howard Marklein, Representative opportunity for growth. Madison dairy economists Bob support industry entrepreneurship, Travis Tranel, a bipartisan coali- The industry’s enthusiasm for Cropp and Ed Jesse reported investment, and development. tion of lawmakers, Governor Tony progress and responsiveness to here this week. Vermont and Tennessee will host Evers, and a powerhouse team of change, paired with the financial the other projects. ag advocacy groups for helping to and educational support promised Little Chute, WI—Spurred by US Sen. Tammy Baldwin of bring the Hub to life. through the Dairy Business Inno- strong sales increases in all of Wisconsin authored the Dairy With both the Dairy Business vation Alliance, its sister projects, its product groups and being Business Innovation Act and Innovation Alliance and Dairy and Wisconsin’s Dairy Innovation “very pleased” with the qual- fought hard to see it approved in Innovation Hub on the immedi- Hub, is reason to expect a new and ity and price of Cheddar it buys the 2018 Farm Bill. She’s going to ate horizon, we look forward with more prosperous chapter for the in Wisconsin and Minnesota, bat for it again via a new appro- hope. US dairy industry ahead. RS Kaukauna Cheese has begun a $2.4 million expansion project.

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commodities were purchased in at a price range of 5.06 to 19.49 Solicitations For USDA Trade Mitigation support of USDA/domestic food cents per pound; and 34,051,500 Dairy Purchases To Be Issued Soon distribution programs. pounds of LMPS unfrozen proces- The purchase includes sor pack Mozzarella at a price range Washington—USDA’s Agricul- Fluid whole, 2 percent and 1 73,901,625 pounds of LMPS of minus 4.33 to minus 0.08 cents tural Marketing Service (AMS) on percent milk in gallons and half- unfrozen processor pack Mozza- per pound. Monday issued a pre-solicitation gallons: solicitations will be issued rella; 10,604,160 pounds of LMPS Miceli Dairy Products Com- announcement for trade mitiga- in November 2019 as well as in frozen 8/6-pound loaves; 9,112,320 pany: 4,152,960 pounds of LMPS tion purchases of up to $68 million February, May and August 2020; pounds of low moisture part skim shredded frozen 30-pound box at in dairy products. delivery timeframes will be all four frozen shredded 30-pound box; a price range of 15.49 to 25.16 The AMS plans to purchase quarters of 2020. and 3,467,520 pounds of lite frozen cents per pound; 2,499,840 pounds these dairy products under the Instant nonfat dry milk shredded 30-pound box. of low moisture part skim frozen authority of Section 5 of the Com- 24/12.8-ounce packages: Solici- Contracts were awarded as fol- 8/6-pound loaves at a price range modity Credit Corporation (CCC) tations will be issued in October lows; the purchase price for each of 8.99 to 13.58 cents per pound; Charter Act for distribution to 2019 as well as in January, April delivery period is the accepted dif- 1,612,800 pounds of lite frozen various food nutrition assistance and July 2020; delivery time- ferential price per pound indicated shredded 30-pound box at a price programs. frames will be in all four quarters plus the applicable previous week’s range of 16.49 to 24.55 cents per Delivery periods will be the first, of 2020. average of the Chicago Mercan- pound; and 6,621,125 pounds of second, third and/or fourth quar- Solicitations will be available tile Exchange (CME) cash market LMPS unfrozen processor pack ters of 2020. electronically through the Web- price for Cheddar 40-pound block Mozzarella at a price range of 6.0 Cheese and dairy products to be Based Supply Chain Management cheese trading: to 9.58 cents per pound. procured include, but are not lim- (WBSCM) system. All future Dairy Farmers of America; Saputo Cheese USA: 4,959,360 ited to: information will be published 1,008,000 pounds of LMPS frozen pounds of LMPS shredded frozen Low Moisture Part Skim Moz- through WBSCM and at www. 8/6-pound loaves at a price range 30-pound box at a price range of zarella String Cheese 360/1- ams.usda.gov/selling-food. of 6.43 to 11.30 cents per pound; 4.85 to 18.91 cents per pound; ounce: solicitations will be issued Meanwhile, AMS this week and 19,452,125 pounds of LMPS 7,096,320 pounds of low moisture in October 2019, January 2020 released an updated packaged but- unfrozen processor pack Mozzarella part skim frozen 8/6-pound loaves and April 2020, and delivery time- ter commodity requirements docu- at a price range of 1.43 to 6.30 at a price range of minus 6.11 to frames will be 2020’s first, second ment. cents per pound. positive 0.56 cents per pound; and and third quarters. The update clarifies grade, pro- Leprino Foods Dairy Products 13,776,875 pounds of LMPS unfro- Yellow Cheddar 12/1-pound duction, and packaging require- Company: 1,854,720 pounds of zen processor pack at minus 4.65 to chunks: solicitations will be issued ments. Questions may be submitted lite frozen shredded 30-pound box positive 0.39 cents per pound. in October 2019, as well as in Jan- to Yvette Percell at yvette.percell@ uary, April and July 2020; delivery usda.gov. timeframes will be all four quarters Also, AMS is seeking industry of 2020. comment on a draft yogurt prod- Yellow Cheddar 6/2-pound ucts commodity requirements doc- shreds: solicitations will be issued ument. in October 2019 as well as in Janu- The document has been updated ary, April and July 2020; delivery to include Kosher certification timeframes will be all four quarters requirements. of 2020. Comments should be provided Regular process cheese 12/2- to Yvette Percell, at the above MULTIPOND Weighing Technology and multihead pound loaves: a solicitation will email address, and Kayla Johnson, be issued in January 2020, and the at [email protected]. by Oct. weighing systems stand for maximum accuracy, delivery timeframe will be 2020’s 9, 2019. performance and reliability. second quarter. Finally, AMS on Thursday Print butter: solicitations will announced the award of contracts be issued in October 2019 as well to four companies for a maximum as in January, April and July 2020; of 97,085,625 pounds of Moz- delivery timeframes will be all four zarella cheese for delivery Jan. 1, quarters of 2020. 2020, through Dec. 31, 2020. The

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For more information, visit www.KuselEquipment.com For more information, visit www.multipond.com Page 6 CHEESE REPORTER October 4, 2019

Cheese Output Up lion pounds, up 1.7 percent; Cali- 1.5 from a year earlier but up 7.5 Manufacturers’ shipments of (Continued from p. 1) fornia, 128.6 million pounds, down percent from a month earlier. nonfat dry milk during August 6.4; Pennsylvania, 21.8 million Lactose production, human totaled 140.2 million pounds, down New Jersey, 4.9 million pounds, pounds, down 2.6; Idaho, 20.3 mil- and animal, was down 4.6 percent 7.7 percent from August 2018. down 4 percent. lion pounds, up 2.2; and Minne- from August 2018. Manufacturers’ Manufacturers’ stocks of NDM at American-type cheese produc- sota, 10.3 million pounds, up 27.1. stocks of lactose, human and ani- the end of August totaled 269.8 tion during August totaled 457.7 Mozzarella production dur- mal, at the end of August totaled million pounds, down 3.8 percent million pounds, up 5.1 percent ing August totaled 359.9 mil- 111.7 million pounds, up 29.6 per- from a year earlier and down 6.5 from August 2018. American-type lion pounds, up 0.7 percent from cent from a year earlier but down percent from a month earlier. cheese output during the January- August 2018. Mozzarella output 1.7 percent from a month earlier. Production of other dry milk August period totaled 3.47 billion during the January-August period Production of whey protein products, with comparisons to pounds, down 0.6 percent from the totaled 2.97 billion pounds, up 3.7 concentrate, human and animal, August 2018, was: skim milk pow- same period last year. percent from a year earlier. during August totaled 39.6 mil- der, 51.4 million pounds, up 8 per- August production of Ameri- Production of other Italian lion pounds, down 7.7 percent cent; dry whole milk, 7.5 million can-type cheese, with comparisons cheese varieties during August, from August 2018. Manufacturers’ pounds, down 21.4; milk protein to August 2018, was: Wisconsin, with comparisons to August stocks of WPC, human and ani- concentrate, 7.3 million pounds, 83.9 million pounds, up 1.9 per- 2018, was: Parmesan, 33.1 million mal, at the end of August totaled down 20.5 percent; and dry butter- cent; Idaho, 62.5 million pounds, pounds, up 14.2; Provolone, 33.6 59.9 million pounds, down 4.6 per- milk, 8.1 million pounds, up 6.2. up 20.9; California, 51 million million pounds, down 5.2 percent; cent from a year earlier and down pounds, down 1 percent; Minne- Ricotta, 19.4 million pounds, down 1.4 percent from a month earlier. Yogurt, Other Dairy Products sota, 49.1 million pounds, down 8.6; Romano, 4 million pounds, Whey protein isolate production August production of yogurt, plain 7.1; Iowa, 17.2 million pounds, up down 5.5; and other Italian types, was down 3.6 percent from August and flavored, totaled 362.6 million 17.2 percent; and Oregon, 17.1 7 million pounds, up 13.9 percent. 2018. Manufacturers’ stocks of pounds, down 8.5 percent from million pounds, down 0.7 percent. Production of other varieties, WPI at the end of August totaled August 2018. Yogurt output dur- Cheddar production dur- with comparisons to 2018, was: 19.2 million pounds, down 39.3 ing the first eight months of 2019 ing August totaled 322.3 mil- Swiss cheese: 28.6 million percent from a year earlier but up totaled 2.91 billion pounds, down lion pounds, up 3.3 percent from pounds, up 2.5 percent. 4.5 percent from a month earlier. 3.1 percent from the first eight August 2018. Cheddar output dur- Cream and Neufchatel: 86 mil- months of 2018. ing the first eight months of 2019 lion pounds, up 0.9 percent. Butter And Dry Milk Products Sour cream production dur- totaled 2.48 billion pounds, down Brick and Muenster: 16.4 mil- August butter production totaled ing August totaled 119.5 mil- 2.3 percent from the first eight lion pounds, up 1.4 percent. 136.4 million pounds, up 2.1 per- lion pounds, up 0.2 percent from months of 2018. Hispanic cheese: 27 million cent from August 2018. Butter out- August 2018. Sour cream output Production of other American- pounds, down 0.1 percent. put during the first eight months of during the January-August period type cheeses during August totaled Blue and Gorgonzola: 7.9 mil- 2019 totaled 1.277 billion pounds, totaled 919 million pounds, up 1.1 135.5 million pounds, up 9.8 per- lion pounds, down 1.3 percent. down 0.8 percent from the first percent from a year earlier. cent from August 2018. Feta: 11.8 million pounds, up eight months of 2018. Cream cottage cheese produc- 11.8 percent. Regional butter production tion during August totaled 31.7 Italian And Other Cheeses Gouda: 5.1 million pounds, during August, with comparisons million pounds, down 0.6 percent August production of Italian- down 27.7 percent. to August 2018, was: West, 70.5 from August 2018. Lowfat cot- type cheese totaled 457.1 mil- All other types of cheese: 13.1 million pounds, up 3.7 percent; tage cheese output during August lion pounds, up 0.8 percent from million pounds, down 19.8. Central, 54.5 million pounds, up 1 totaled 27.9 million pounds, down August 2018. Italian cheese pro- percent; and Atlantic, 11.4 million 5 percent from August 2018. duction during the first eight Whey Products Production pounds, down 1.8 percent. Regular ice cream production months of this year totaled 3.75 Production of dry whey, human, Nonfat dry milk production was in August totaled 65.7 million billion pounds, up 2.2 percent from totaled 83.4 million pounds, up up 2.5 percent from August 2018. gallons, down 6.4 percent from the first eight months of last year. 7.5 percent from August 2018. NDM output during the first eight August 2018. Lowfat ice cream August Italian cheese produc- Manufacturers’ stocks of dry whey, months of this year totaled 1.282 output during August totaled 40.2 tion with comparisons to August human, at the end of August billion pounds, up 1.7 percent from million gallons, down 3.8 percent 2018, was: Wisconsin, 144.2 mil- totaled 70.4 million pounds, down the first eight months of last year. from August 2018.

Cheese Production Butter Production Dry Whey Production WPI Production 2019 vs. 2018 2019 vs. 2018 2019 vs. 2018 2019 vs. 2018 1,000 pounds 2019 1,000 pounds 2019 1,000 pounds 2019 1,000 pounds 2019

95,000 12,000 1,125,000 190,000 11,500 1,100,000 180,000 90,000 11,000 1,075,000 170,000 10,500 85,000 1,050,000 10,000 160,000 9,500 1,025,000 80,000 150,000 9,000 1,000,000 75,000 8,500 975,000 140,000 8,000 950,000 130,000 70,000 7,500 J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

Yogurt Production Ice Cream (reg. hard) Production NDM Production Lact ose Product ion 2019 vs. 2018 2019 vs. 2018 2019 vs. 2018 2019 2019 vs. 2018 1,000 pounds 1,000 gallons 2019 1,000 pounds 2019 1,000 pounds 2019

425,000 115,000 80,000 180,000 405,000 170,000 110,000

385,000 70,000 160,000 105,000 150,000 100,000 365,000 60,000 140,000 95,000 345,000 130,000 90,000 50,000 120,000 325,000 110,000 85,000

305,000 40,000 100,000 80,000 J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D October 4, 2019 CHEESE REPORTER Page 7

to date in connection with these For more information, visit United Dairymen Listeria Concerns products. This is a voluntary and www.considerbardwellfarm.com. Of Arizona Prompt Consider precautionary recall initiated by Also on Monday, in response to Consider Bardell Farm. The con- the recall from Consider Bardwell Partnering With Bardwell Farm To tamination was discovered by rou- Farm, Whole Foods Market stores tine testing of finished products in the Northeast and North Atlan- FrieslandCampina Recall Some Cheese and the manufacturing environ- tic regions voluntarily recalled On Lactoferrin West Pawlet, VT—Consider ment. Dorset cheese because of a poten- Bardwell Farm, LLC, of West Consider Bardwell Farm said tial contamination of Listeria Tempe, AZ, and Amersfoort, Pawlet, VT, announced that it is Netherlands—United Dairymen it has halted all production and monocytogenes. recalling several cheeses because shipment of product until further The affected product was sold of Arizona (UDA) is partnering the products may be contaminated with FrieslandCampina to bring notice. The company said it has at Whole Foods Market stores in with Listeria monocytogenes. no reason to suspect contamina- Connecticut, Maine, Massachu- lactoferrin to the market, the two The products being recalled companies announced this week. tion of any other cheeses made at setts, New Hampshire, New Jer- include two-pound wheels of Consider Bardwell Farm. sey, New York and Rhode Island. The partnership has a capacity Slyboro with product dates of to produce 10 tons of lactoferrin Until it completes the investiga- The affected product was cut and 4/28/2019 until present; 2.5-pound per year and both companies see tion of its facility, the company is wrapped in plastic with a Whole wheels of Dorset with product this as an opportunity for further asking that its customers pull and Foods Market scale label, identifi- dates of 4/28/2019 until present; collaboration. hold all Consider Bardwell Farm able by PLU code 97776 with sell- and three-quarters-pound squares “Partnering with cheeses from sale and distribution by dates through 10/30/2019. of Experience with product dates FrieslandCampina has been an until further notice. The company No illnesses have been reported of 4/28/2019 until present. honor for our cooperative. The expects to have results from its to date, Whole Foods Market No illnesses have been reported fact that they’ve chosen Arizona investigation by Oct. 10. stated. milk to contribute to their global lactoferrin business is very exciting. We are very proud of our farmers for their commitment to animal For nearly two decades, we have helped customers care, without which we wouldn’t grow their business and profits. get such high-quality milk,” said Keith Murfield, UDA’s CEO. “We are excited about the new partnership because of the common values, history and structure of our companies, and it fits our strategic ambitions on lactoferrin. Our technology and extensive experience, combined with the high-quality milk of UDA, will ensure a product that meets global APT occupies over 100,000 sq ft of state-of-the-art manufacturing and production quality, and regulatory require- space in Minnesota, Idaho and California to better serve the North American market. ments, for early life nutrition,” said Kathy Fortmann, president of FrieslandCampina Ingredients. FrieslandCampina expects to announce further lactoferrin capacity expansion plans in the near future. Lactoferrin is naturally present in both cow’s milk and human milk. A number of studies have shown several potential health benefits of lactoferrin, including anti-bacterial and anti-inflamma- tory activity, FrieslandCampina We fabricate a broad range of high-quality specialized processing noted. Lactoferrin is a specialty equipment for our customers using precision stainless steel construction ingredient in early life nutrition. and unparalleled design expertise. According to a FrieslandCampina product data sheet, FrieslandCampina has From a single tank to a total system, our in-house fabrication team has the obtained GRAS (generally recog- experience, knowledge and equipment to deliver durable, quality nized as safe) status from the US products that perform and last. Food and Drug Administration (FDA) for the use of lactoferrin in food products at levels up to 100 milligrams per serving. In 2013, FrieslandCampina’s lactoferrin obtained novel food status in the European Union (EU) for use in food and infant formulas (up to one gram per liter infant formula). Lactoferrin can be used in a wide variety of applications, the product data sheet noted. Market areas for high purity lactoferrin include ADVANCED PROCESS TECHNOLOGIES infant, follow-on and toddler nutrition; dietary supplements; oral care Employee Owned and Operated with locations in Minnesota | Idaho | California products like toothpaste; medical Find out more at APT-INC.com nutrition; sports nutrition; dairy products; and functional foods. For more information, visit www.APT-Inc.com Page 8 CHEESE REPORTER October 4, 2019

Per Capita Record record 11.20 pounds, up from 11.09 pounds, and up more than half a unchanged from 2017, down from (Continued from p. 1) pounds in 2017. Per capita Ched- pound from 1995. 1.57 pounds in 2016 and up from dar consumption has increased Swiss cheese (including 1.10 pounds in 1998. than a pound since 2002, when by about two pounds since 1996, imported Emmenthaler and Per capita consumption of it totaled 2.43 pounds, and has when it was 9.19 pounds. Gruyere): 1.08 pounds, up from cheese other than American- increased by almost half a pound And per capita consumption of 1.04 pounds in 2017 and the high- type, excluding cheese not from since 2014, when it was 3.02 American-type cheeses other than est per capita consumption since cows, was a record 22.52 pounds pounds. Cheddar last year was a record 2012’s 1.09 pounds. in 2018, up from 21.85 pounds in

Per Capita Per Capita Per Capita Per Capita Muenster Consumption Hispanic Cheese Consumption Mozzarella Consumption Cheese Cheese Consumption 1.0 13.01997 – 2018; pounds 1997 – 2017; pounds 1997 – 2018; pounds 1997 – 2017; pounds 0.9

12.0 0.8 0.7

11.0 0.6 0.5

10.0 0.4 0.3

9.0 0.2 0.1

8.0 0.0 97 00 05 10 15 18 97 00 05 10 15 18 97 00 05 10 15 18 97 00 05 10 15 18 Also in 2018, per capita con- 4.18 pounds, up from 4.0 pounds Muenster: a record 0.54 pound, 2017 and up almost seven pounds sumption of American-type in 2017. up from 0.53 pound in 2017 and up from 1998. cheeses (which includes Cheddar, Per capita consumption of other 0.20 pound from 1998. Last year, per capita consump- Colby, Monterey Jack, washed curd American cheeses has risen by Brick: 0.01 pound, unchanged tion of imported cheese not from and stirred curd) totaled a record more than a pound since 2009, from the previous four years and cows milk was 0.26 pound, down 15.38 pounds, up 0.3 pound from when it was 3.12 pounds. down from 0.03 pound in 2013. from 0.30 pound in 2017. 2017 and the second straight year Per capita consumption of other Blue cheese: 0.31 pound, Among processed cheese prod- in which per capita consumption types of cheese typically from cows up from 0.30 pound in 2017, ucts, consumption of processed of American-type cheese topped milk last year, with comparisons to unchanged from 2016, and down cheese last year was 5.23 pounds, 15 pounds. previous years, was as follows: from 0.32 pound in 2015. up from 5.17 in 2017 and the high- Within the American-type Cream and Neufchatel: 2.58 Hispanic cheese: a record 0.88 est level since 1996’s 5.44 pounds; cheese category last year, per cap- pounds, unchanged from 2017, pound, up from 0.80 pound in 2017 and per capita consumption of cold ita Cheddar consumption totaled a down from 2016’s record of 2.61 and more than double 2002’s con- pack cheese foods, and other foods sumption of 0.42 pound. and spreads was 1.84 pounds, down OtherKoss_Equipment.pdf cheese: 1.48 pounds, 5 6/6/19 2:21from PM 1.94 pounds in 2017. Automated Cheese Waxing Systems Custom Stainless Steel Processing Equipment Add value to your Cheese with a Waxonator System

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M Simplifies and Automates the Cheese Waxing Process • Two Operators required for infeed and exit of the product. Y

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MY System allows for Quick Color Changes • 30-45 minutes required for color changeovers. CY Grinders It’s in everything we do, • Each Wax Color can be stored in its own Wax Vat. CMY Koss is a leading manufacturer of K from full-plant installations, Significant Reduction in Operator time custom stainless steel processing • Throughput on Cheese Wheels – 5-10 seconds per wheel. to designing pasteurization equipment for the cheese, dairy and • Throughput on Retail Cut Cheese Pieces – 3-5 seconds per piece. systems, to fabricating other sanitary industries. Contact the Cheese Waxing Specialists at Valcour Process Technologies to discuss tanks and vessels. your Cheese Waxing application From pasteurizersDoesn’t to PMO your tanks, next “Enabling Extraordinary Cheese mixers to molders,project and deserve cookers the to Production, Converting, Packaging, Inspection, Sustainability, and conveyors,skill we’veof true got craftsmanship? you covered. Project Solution Opportunities for our Customers.”

kossindustrial.com Green Bay, WI 1-800-844-6261 518.561.3578 • ValcourProcessTech.com For more information, visit www.valcourprocesstech.com For more information, visit www.kossindustrial.com October 4, 2019 CHEESE REPORTER Page 9

there are “outsized” opportunities Vilsack noted that USDEC is in USDEC’s Vilsack Remains Optimistic for growth as reasons for optimism, Indonesia on a trade mission this About Long-Term Dairy Export Growth including: week with USDA’s Foreign Agri-  Broadening partnerships cultural Service and a dozen US Madison—Despite the ongoing USDEC is playing a role accel- within Mexico to further build dairy ingredient exporters. Indo- US trade war with China, USDEC erating the uptake of permeate to demand for US Dairy to capitalize nesia is working to expand its dairy President and CEO Tom Vilsack rebuild China’s swine population on USMCA, once ratified. supply chain. today listed reasons to be optimis- with seminars Oct. 29 in Beijing  Launches of US cheese  A pop-up US Dairy display to tic about the long-term growth and Oct. 31 in Nanchang. in Mexico and China through increase visibility and induce prod- of US dairy exports, especially in One of the most promising mar- Costco retail partnerships, as well uct trial across regions. high-demand markets in the Mid- kets for US dairy exports is South- as in Chile through focused retail  Partnerships with fitness cen- dle East, Asia and Mexico. east Asia, where US dairy exports engagement. ters and cheese marketers in Japan. “This will require patience. We increased 12 percent last year and  The launch of the USA USDEC has a partnership with have to play the strategic long USDEC is making a new invest- Cheese Guild™, an internation- fitness chain Curves, which sells game. But I am convinced now ment to develop the US Center ally branded effort to facilitate concentrated whey protein from more than ever that we are com- for Dairy Excellence in Singapore. education about and preference for the US to customers at its 2,000 peting to win, not just for today’s “The vision,” Vilsack said, “is US cheeses within culinary, food- locations. dairy farmers, but for the next gen- to create an educational center service, communications and retail In addition, USDEC Japanese eration,” Vilsack said in an address within the hub of Southeast Asian channels. cheese marketing partner Chesco at World Dairy Expo. food innovation.”  Halal food training for dairy is introducing high-end US Last year, the US dairy industry Vilsack highlighted other exporters exploring growth in cheeses in its own stores, as well as exported the equivalent of almost USDEC long-term investments in Islamic nations, such as Indonesia other Japanese grocery and depart- 16 percent of US milk solids. That fast-growing markets where he said – a top 10 global dairy importer. ment stores. 2018 volume percentage set a new US dairy export record, despite the drag of retaliatory tariffs in the largest US dairy export market, Mexico, and in China, the number three market. For several years, export volume plateaued around 15 percent of total US milk solids production. Vilsack began an industry-wide initiative in 2017 called “The Next 5%.” It aims to increase export volume five percentage points to 20 percent of production. The retaliatory tariffs imposed last year have been lifted in Mex- ico and Vilsack said if Congress passes the United States-Mexico- Canada Agreement (USMCA) to replace the NAFTA, it will bring more stability. Another positive development: an interim agreement announced last month with Japan, the world’s largest importer of cheese, that will deliver improvements in market access for US cheese and whey exports. US dairy exports to Japan last year were valued at $270.3 million, and in value terms, Japan was the fifth most important US dairy export market in 2018, trailing Mexico, Canada, China and South Korea. US cheese exports to Japan last year totaled 123.6 million pounds, making Japan the third-largest US cheese export market, trailing only Mexico and South Korea. In China, US dairy exports are roughly half of what they were before the tariffs. Nonetheless, the industry must maintain a strong presence there, Vilsack said, estab- lishing and cementing relationships to increase demand for US dairy products. Vilsack met in late August in Beijing with officials from China’s Ministry of Finance and Commerce to stress that the US has the dairy ingredients, scientific research and know-how to help rebuild China’s pig herd decimated by African swine fever. Shortly thereafter, China announced it was waiving its retaliatory tariff on US permeate for feed. For more information, visit www.loosmachine.com Page 10 CHEESE REPORTER October 4, 2019

are products that our customers Valley Queen Expands To Offer Flexibility, can’t get anywhere else, or because the customer needs someone who Hard-to-Make Products, While Preserving Legacy can ramp and scale up in a rela- Milbank, SD—Valley Queen winning cheese contest plaques is a good base of producers that tively short period of time. We’re Cheese Factory recently celebrated hanging on the walls. are efficient. glad they look at us that way.” its 90th anniversary, a milestone “We knew the values the com- “There is ample feed and water Consumers are looking for that also corresponded with an pany was built upon,” Wilke said. and an agriculture dairy friendly something different and Gouda has increase of 25 percent in process- “Our vision is to be the premier, environment here,” Wilke said. become a nice business from a vol- ing capabilities. privately owned dairy manufac- “There is still siting and building ume perspective at Valley Queen, Those processing capabilities turer in the US.” of dairies going on and some of our Wilke said. Havarti has, too. will not come from Valley Queen’s The expansion spells out the existing producers are expanding. “To put Gouda/Havarti into a traditional production but in new beginning of a 12-year road map We feel pretty good about it.” blend or Gouda into a slice, or a and unique products that fill con- for executing a strategic long-term South Dakota and Minnesota Havarti into a slice, that differen- sumer trends or in varieties larger plan that will preserve the legacy, have recently added significant tiates our customers in the mar- producers can’t or don’t want to optimize the company’s base busi- cheese production capacity. ketplace,” Wilke said. “Those are handle, said Doug Wilke, CEO of ness and invest in employees. First District Association, Litch- really good products for us to make Valley Queen. field, MN, just announced its latest and serve a market need.” “Our owners are willing to Optimizing Base Operations expansion plans. Agropur in Lake Culture Change at Valley Queen invest in new infrastructure capa- The VQNext project is part of Norden, SD, recently finished its One of the most subtle yet major ble of processing 5.5 to 6 million the company’s strategy to optimize project that will add 6 million changes over the past two years pounds of milk a day,” Wilke said. its base business. It is designed to pounds of milk a day and Valley is perhaps the corporate identity “Because our plant is not as large as increase throughput 25 percent, Queen has added one million a day. change. some cheese plants, we’re going to maximize current processes by “Look at what’s happening in No longer Valley Queen Cheese have to do some things differently adding new technology and equip- this region. Valley Queen is pretty Factory, the company dropped or more uniquely for our custom- ment, and update infrastructure of small relatively speaking,” Wilke “cheese factory” from the logo to go ers.” the plant. said. “If we are beyond cheese. The company’s modernization The project will take the com- going to be a “We talk plan may have actually started 15 pany’s processing ability to 5.5 mil- player, the busi- about transition years ago when the family-owned lion pounds of milk a day. Annual ness can’t stand and transform- business switched to a corporate cheese production will increase still. Costs ing things. We structure giving influence to an from 165 million to 200 million continue to go took the word outside board of directors. pounds. On the dry side, Wilke up, custom- cheese out,” While the company is still said the company’s whey products ers expect effi- Wilke said. “We owned primarily by the Gonzen- will generally increase 25 percent ciency, quality and competitively want to be the premier, privately- bach and Nef families, a new as well. The company currently priced products.” owned dairy manufacturer in the profit sharing plan allows eligible makes 13 million pounds of WPC We had a growing milk supply, US. Doesn’t say cheese. It says employees to be shareholders, too. 80 but will increase production to we had good demand from custom- dairy manufacturing.” The corporate structure was 16 million pounds annually. Lac- ers and we had owners who were There are stakeholders here who constructed so Valley Queen could tose will increase from 45 million willing to invest. When you put really want to move forward and retain the legacy and heritage of to 56 million pounds annually. those three things together, it made grow,” Wilke said. being an independent dairy pro- “That will round out the manu- a lot of sense to expand, he said. “We’re not dragging people cessing company and business facturing assets of the site,” Wilke along into change. I think people leader to the community. said. “We’re not done growing, but Becoming Agile With Production are embracing where we are head- When the board hired Wilke it utilizes the equipment that we A good percentage of the product ing. We have a rich history, we’re in December 2016, it entrusted have today.” mix at Valley Queen has been the a financially sound business, we him to chart the future of Valley Valley Queen has 42 dairies manufacture of reduced fat and have a board willing to invest and Queen; that is, a full strategic plan delivering over 5.5 million pounds lowfat cheese, Wilke said. That you put all that together with a for the company. of milk a day. product line is still good but it will group of 286 employees that think “Essentially the board asked “Our producers’ milk produc- not utilize the extra million pounds it’s important to win and grow. It’s the executive leadership team to tion is growing at 4.5 to 5 percent of milk a day. powerful,” Wilke said. answer three questions. Where is a year,” Wilke said. “We’ve already “That reduced fat and lowfat “If you can’t get everyone aligned the company today? Where do we filled 14 percent of our goal for business is relatively flat because on some fundamental things that want to be tomorrow? And how do increasing production 25 percent. dairy fats are good again,” Wilke are non-negotiable like safety and we get there?,” Wilke said. You never know, but with the way said. quality, then it’s going to be difficult Studying the 90-year history of our producers are growing, we will Wilke said the company has to to get people aligned on a sophisti- Valley Queen was relatively easy. be full with our own milk again in look at new products, products that cated business model. I don’t think He said the pride of the company 3.5 to four years.” other companies can’t make, while it’s a matter of if or what’s going to was evident in employee hand- Wilke feels good about milk utilizing and “leveraging” the infra- prevent you, it’s a matter of speed books to city centers to award- growth in this region. He said there structure of the plant. for which it happens.” “Our vision here is not to just Cheese Plant Upgrades build another 6 million pound a The expansion was a $53 mil- day 640 cheese plant,” Wilke said. lion investment in the company’s “We are thinking about a process cheese capabilities. or product that is unique to Valley “We have no choice. It’s got to Queen. That is ‘the something’ we be run right and create the effi- would like to bolt onto this plant. ciencies we expect,” Wilke said. Keep this base business but lever- “We have to make the $53 mil- age the people and infrastructure lion we spent perform and get the we have to go down the line of return we need so we can move on value-added product.” to these other things.” “Our new cheese upgrades Wilke thinks the expansion enable us to help bring a new has some nice features, with high product to life, make our custom- ceilings, clean walking areas and ers’ jobs easier and, allow us to aisles. compete in a marketplace where “You can’t have a wedding recep- we can do a better job than some- tion in any room but we have good one else because we are far more One of the areas of strength at Valley Queen is the company’s ability to make cheese with con- walking patterns and a conducive diments. 12 RELCO Curd Tables were added to Valley Queen’s production to provide greater efficient,” Wilke said. “All of the flexibility to the company’s product mix and to take advantage of those strengths. products that are in development • See Valley Queen, p. 11 October 4, 2019 CHEESE REPORTER Page 11

Valley Queen Wilke said the company has Continued from p. 10 worked with RELCO in the past on several different projects. work area to make our product the “These tables are really impres- best we can with the intention of sive,” Wilke said. “They are built creating a safer environment for well. The one thing we really like our workers.” is that the pusher stays on the table Valley Queen finished an and does not have to be removed. expansion of the its whey opera- And everything is CIPable.” tions a few years ago. Wilke said Mark Litchfield is the vice that expansion was overbuilt at president of sales and marketing the time, allowing for the dollar at RELCO. concentration to go to the cheese “To their credit, Valley Queen plant. takes more of an artisan approach “The whey plant is set up nicely. to cheesemaking,” Litchfield said. It’s new equipment. It looks great. “What is unique is the size of We are really good at manufactur- the Valley Queen operation and ing,” Wilke said. “We can carry they’re using tables. We sell a lot inventories when we want, we can of tables but 12 tables at that size sell when we want. It’s very inten- is kind of unique.” tional what we are doing and we’re Litchfield said the company is 640-pound cheese blocks are filled, pressed and conveyed to vacuum chambers all designed very focused on it.” fantastic to work with and they by Loos Machine. The packaging system is unique in terms of whey collection and automation. really take care of their equipment. “They had a clear idea of what the company. tegic plan through 2031. “If one of our they wanted. All the way through, The one thing Mertens would “People ask me, what does 2031 say that is standard with any new look like at Valley Queen? What customers has an idea they were involved,” Litchfield said. “The level of automation 640 line Loos puts into plants is new products, what kind of inno- for a new product, we’d and the level of the incorporation a patented technology that tracks vative growth, what kind of novel like for them to call us of CIP are major issues for them. and automatically identifies and and proprietary offerings will occur first...We want them to Safety is a major priority for them.” collects data from the 640 block. between now and then,” Wilke To Wilke’s point about making think about what they Wilke said the packaging line said. “Well I can’t tell you specifi- is probably the most different and whey collection a priority, Mertens cally what that’s going to look like want rather than what unique area. said they were able to remove addi- today, but I can tell you direction- we make.” “We got approval from the tional whey through other prac- ally we are heading there.” board. The concept was good but tices rather than conventionally. Anyone can put plans on a —Doug Wilke, we wanted to make sure we were “It’s a more efficient, more cost- piece of paper, Wilke said. “But Valley Queen thinking long-term. We wanted to effective system that also makes a you have to be able to look and be able to step back and be able to better product,” Mertens said. ask, did that group of employees say, alright, we can make cheese in Mertens said working with the and management team move the He said the company will be this room for the next 30 years.” Valley Queen team was a very needle?” looking at the whey side again in When the VQ team looked at it rewarding experience. “We will always be focusing on the near future. from that perspective, it decided to “They’re a fantastic group. From safety and quality; building and “Are we going to go high-value, top down you have a group that look more closely at the 640 pack- retaining a team; doing training high-investment whey or are we is smart and innovative,” Mertens aging system. and development; and we’ll be going to focus on being the best in said. “They had many ideas of their Working with Loos Machine starting to research new products the world at 80 and lactose when it own and they are open to working and Automation, the team at Val- and technologies,” Wilke said. comes to operational excellence?” with different concepts.” ley Queen decided to change plans. “When charting our future, we Wilke pondered. “Late in the game we looked The company added new silos VQ 2031 have to be good at what we do, at a different system,” Wilke said. and added some milk holding One of the things the board of make the right decisions, keep the “We’ve now incorporated some- capacity, added a couple of new Valley Queen asked Wilke and his business healthy, to make good thing more innovative that we Tetra Pak cheese vats, built a room team to do was to chart out a stra- products and continue to grow.” think is going to give us and our for new finishing tables, built a customers some nice benefits.” new packaging room, and added a That new and different is also boiler and cooling systems. proprietary and Wilke would only Your Safe, Quality Food is Our Business. The company also expanded its say how unique the system is in wastewater treatment plant that regard to whey collection and “we believe will take us to where automation. future regulations might be going.” “The system is very unique. VQ Flexibility And Uniqueness Loos came in here and listened Wilke says the company is really to what we wanted,” Wilke said. good at putting condiments in “The automation level in which cheeses as well as combining cheeses those particular components are like Colby and Monterey Jack. handled is extremely high. This is “If one of our customers has an one of the first systems where whey idea for a new product, we’d like recovery is a priority. It’s a touch- for them to call us first. It’s really a less system, fully automated.” Since 1947, Nelson-Jameson has been a leader in the food and customer-driven model,” he said. Eric Mertens, president of Loos, beverage industry—supplying customers with the products and “We have to be flexible. We want honored the proprietary aspects of expertise they need from a single-source supplier. them to think about what they the unique 640 system. want rather than what we make.” “We sat down with Valley Queen Our Direct Products Technical Sales Team is comprised of In order to be flexible, Valley as we do with all of our customers, seasoned industry professionals with over 230 years of combined Queen built a room that will house and what we feel sets us apart is the experience in the dairy industry—117 years directly in the plant— 12 new RELCO TRU-FINISHTM ability to work with our custom- and expertise in ingredients, packaging, and sanitation. Curd Tables. ers on their custom cheesemaking Contact us today, and connect with someone “We make a lot of different techniques.” who understands your industry! cheeses, so flexibility is really the Mertens said automating the key, and these tables really allow cheese makers’ unique cheesemak- us to be nimble in our cheesemaking processes with Loos’ innovative 1-800-826-8302 • nelsonjameson.com [email protected] ing,” Wilke said. machinery is what differentiates Page 12 CHEESE REPORTER October 4, 2019

Tariffs On Cheese to their market while they enjoy nesses all over the world, in the to identify EU products to which (Continued from p. 1) broad access to ours. US as much as in the Union, but additional duties may be applied “Trade authorities should also also on food prices.” until the EU removes its Airbus address one particularly egregious FoodDrink Europe, representing subsidies. subsidies to their aircraft manufac- example of EU trade practices: the Europe’s food and drink industry, That initial list included a turers,” Malmstrom said. “In the EU’s abusing the use of geographi- said it “deeply regrets” that the US total of 40 8-digit subheadings of parallel Boeing case, the EU will cal indications to limit competi- list of EU goods to face counter- the Harmonized Tariff Schedule in some months equally be granted tion from cheese exporters in the measures includes a wide range of (HTS) of the US that pertain to rights to impose countermeasures US that use common food names,” food and drink products that will US cheese imports from the EU. against the US as a result of its NMPF continued. “Rather than be subject to retailatory tariffs of continued failure to comply with 25 percent. WTO rules.” compete head-to-head with high- quality American-made foods by “This alarming decision will The mutual imposition of coun- severely impede access for Euro- Rather than compete termeasures, however, “would only allowing the use of common food names to coexist alongside GIs pean food and drinks to the US head-to-head with inflict damage on businesses and market,” currently the industry’s high-quality American- citizens on both sides of the Atlan- relating to those products, Europe instead blocks sales of these every- first foreign destination with a made foods...Europe tic, and harm global trade and the value of exports exceeding 20 bil- broader aviation industry at a sen- day food products from the United instead blocks sales States and aggressively pressures lion euros last year, FoodDrinkEu- sitive time,” Malmstrom added. rope said. of these everyday In a statement released Wednes- other countries to do the same.” “I cannot see any reason to make “There are serious concerns food products from day, the National Milk Produc- about the collateral damage that ers Federation (NMPF) said it basically the US cheese aficiona- the United States and dos pay for the aircraft battle, since the WTO civil aircraft disputes aggressively pressures “strongly” supports the WTO’s will have on our well-established imposition of $7.5 billion in retal- they would have to pay the higher other countries to do prices for the dairy products from EU-US food and drink indus- iatory duties on EU products, try relations. Europe’s food and the same.” the EU member states involved including dairy products, to prod drink manufacturers, 99 percent of in the Airbus project,” said Alex- the EU to uphold its WTO com- which are small and medium-sized —NMPF ander Anton, secretary general of mitments and reinforce the impor- enterprises, could end up paying the European Dairy Association tance of two-way trade. the price for a dispute originating (EDA). “NMPF strongly endorses the in a completely unrelated sector,” The USTR invited comments Agri-food products and hence US Trade Representative’s new list FoodDrinkEurope continued. on that proposed list and received the farming community are “now of European dairy exports that will “Not only will this be detrimen- testimony from more than 40 wit- regularly taken as hostage in trade now face higher tariffs,” NMPF tal to the food industry itself, but nesses at a public hearing in mid- disputes; this is a development that said. “The US is running a $1.6 it would also have hugely nega- May. is unacceptable,” Anton contin- billion dairy trade deficit with tive broader implications for sup- Among others testifying at that ued. “It not only puts additional Europe because of unfair EU trade ply chains, workers and consumers hearing, NMPF voiced support pressure on the agri-food busi- practices that block our access in the EU and in the US,” Food- for the proposed tariffs, while the DrinkEurope added. Cheese Importers Association of America (CIAA) opposed the pro- Background On Airbus Case posed tariffs. The Airbus case dates back to In early July, the USTR and the Fluid Milk 2004, when the US initially filed Section 301 Committee invited a WTO dispute settlement case comments on a supplemental list Our strategy for buying and selling against the EU regarding billions of EU products that could poten- has your best interests in mind. of dollars in what the US said were tially be subject to additional unfair subsidies provided to Airbus duties. That list included an addi- by European governments. tional 19 8-digit subheadings that After hears of WTO panel and pertain to cheese, as well as addi- appellate reports, the USTR last tional subheadings that pertain Cream & Butter April began its process under Sec- to other dairy products, including It’s about balancing supply and demand. tion 301 of the Trade Act of 1974 butter.

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per pound), up 1.8 percent. That hasn’t been below 190 since Janu- Global Dairy Trade Price Index Rises was for Contract 2. ary, and it hasn’t been above 200 0.2%; Four Product Prices Increase Buttermilk powder: The aver- since May. age winning price was $2,670 per In September, price quotations Auckland, New Zealand—The cent; Contract 2, $4,988 per ton, ton ($1.21 per pound), up 6.7 for cheese and butter fell, espe- price index on this week’s semi- up 2.1 percent; Contract 3, $5,012 percent. Average winning prices cially at the lower end of the price monthly Global Dairy Trade per ton, up 1.5 percent; Contract were: Contract 1, $2,735 per ton, range, the FAO reported. Moder- (GDT) dairy commodity auction 4, $4,959 per ton, up 0.2 per- up 6.6 percent; Contract 2, $2,627 ate increases in export availabili- increased 0.2 percent from the pre- cent; Contract 5, $5,098 per ton, per ton, up 7.1 percent; Contract ties, principally in New Zealand, vious auction, held two weeks ago. down 3.3 percent; and Contract 6, 3, $2,750 per ton, up 6 percent; where milk production is nearing That marked the second straight $4,891 per ton, down 8.5 percent. Contract 4, $2,770 per ton, up 5.9 the seasonal peak, contributed to increase in the GDT price index. Rennet casein: The average percent; and Contract 5, $2,780 the decline. Prior to these two increases, the winning price was $6,683 per ton per ton, up 6.7 percent. By contrast, skim milk powder GDT price index had declined in ($3.03 per pound), up 0.7 percent. In other international dairy and whole milk powder price quo- seven out of eight auctions. Average winning prices were: commodity price developments, tations firmed on strong import In this week’s trading event, Contract 1, $6,985 per ton, down the UN Food and Agriculture demand amid limited export avail- which featured 184 participating 0.7 percent; Contract 2, $6,713 per Organization (FAO) reported abilities, especially in Europe, the bidders and 131 winning bidders, ton, up 0.5 percent; Contract 3, Thursday that the FAO Dairy Price FAO noted. prices were higher for skim milk $6,580 per ton, up 0.8 percent; and Index averaged 193.4 points in The FAO Food Price Index powder, rennet casein, lactose Contract 4, $6,600 per ton, up 2.2 September, down 0.6 percent (1.1 averaged nearly 170 points in Sep- and buttermilk powder; lower for percent. points) from August but still 1.3 tember, unchanged from August Cheddar cheese, whole milk pow- Lactose: The average winning percent higher than in September but 3.3 percent higher than in der and butter; and unchanged for price was $784 per ton (35.6 cents 2018. The FAO Dairy Price Index September 2018. anhydrous milkfat. Results from this week’s auction, with comparisons to the one held two weeks ago, were as follows: Cheddar cheese: The average winning price was $3,717 per met- ric ton ($1.69 per pound), down 3.4 percent. Average winning prices were: Contract 1 (Novem- ber), $3,902 per ton, up 1.6 percent; Contract 2 (December), $3,858 per ton, down 2.3 percent; Contract 3 (January 2020), $3,651 MORETHAN EQUIPMENT. per ton, down 3.2 percent; Con- tract 4 (February 2020), $3,569 per A COMPLETE PROCESS SOLUTION. ton; and Contract 5 (March 2020), $3,894 per ton, up 0.1 percent. Skim milk powder: The aver- For over 35 years, RELCO has been providing cheese and dairy plants age winning price was $2,674 per ton ($1.21 per pound), up 2.7 with safe, innovative process technologies suited totheirspeciﬁc needs. percent. Average winning prices were: Contract 1, $2,603 per ton, up 0.9 percent; Contract 2, $2,672 Systems, Powder Handling Systems & Equipment, and After Sales per ton, up 2.6 percent; Contract 3, $2,674 per ton, up 0.4 percent; Support. RELCO is committed to delivering projects on schedule and Contract 4, $2,695 per ton, up 5.5 percent; and Contract 5, $2,686 within budget to create long-term customer relationships. per ton, up 4.5 percent. Whole milk powder: The average winning price was $3,141 per ton ($1.42 per pound), down 0.2 Learn more about RELCO solutions at percent. Average winning prices relco.net/trust. were: Contract 1, $3,257 per ton, up 0.8 percent; Contract 2, $3,115 per ton, down 2.3 percent; Con- tract 3, $3,131 per ton, up 0.5 per- TRU-BLOCK™ cent; Contract 4, $3,113 per ton, BLOCKFORMER up 1.9 percent; and Contract 5, $3,131 per ton, up 2.5 percent. TRU-FINISH™ Butter: The average winning CURD TABLE price was $4,125 per ton ($1.87 per pound), down 0.2 percent. Aver- age winning prices were: Contract 1, $4,155 per ton, down 0.6 percent; Contract 2, $4,130 per ton, down 0.8 percent; Contract 3, $4,090 per ton, down 3.8 percent; Contract 4, $4,125 per ton, up 3.8 percent; Contract 5, $4,155 per ton, up 3 percent; and Contract 6 (April 2020), $4,160 per ton, up 1.1 percent. Anhydrous milkfat: The average winning price was $4,997 per ton ($2.27 per pound), unchanged. Average winning prices were: Con- tract 1, $5,007 per ton, up 1.2 per- For more information, visit www.relco.net/cheesereporter Page 14 CHEESE REPORTER October 4, 2019

The proposed rule would also USDA Reopens clarify how breeder stock should Ohio Swiss Cheese Festival Auction Comment Period On be managed on organic livestock farms. Raises $25,015; Pearl Valley Lauded Origin Of Livestock AMS received over 1,500 public comments on the proposed rule For Dairy Animals back in 2015. Under Organic Rules The agency is now reopening Washington—USDA’s Agricul- the comment period, and will tural Marketing Service (AMS) accept comments through Dec. 2, this week reopened the comment 2019. period on a 2015 proposed rule Comments previously submitted to amend the origin of livestock need not be resubmitted, as they requirements for dairy animals are already incorporated into the under the USDA organic regula- public record, unless a commenter tions. has new or different information In April of 2015, AMS pub- to provide. lished a proposed rule to clarify Final determinations would con- requirements for organic dairy sider all written comments and any farms under USDA’s organic regu- information AMS receives during lations. The proposed rule would all comment periods. add requirements about transition- In its original rule, AMS ing dairy animals to organic pro- requested comments on the cost Pearl Valley Cheese, Fresno, OH, was honored at the Ohio Swiss Cheese Festival last week and benefit analysis presented, after being named Grand Champion of the annual Ohio Swiss Cheese Maker Competition. duction. During the festival’s cheese auction of competing cheeses, Walnut Creek Cheese purchased Specifically, the proposed rule including assumptions and esti- a 50.8 pound cut of the Grand Champion cheese. In the above photo are Chuck Ellis, Pearl would specify that a producer mates, of limiting dairy transition Valley Cheese; Jaci Hershberger, 2019 Swiss Festival Queen; Kurt Ellis and David Burch of can transition dairy animals into to a one-time exception for a given Pearl Valley Cheese; and Mark Coblentz, Walnut Creek Cheese. organic production once. The producer; procedures that certifying This year’s auction drew a total proposed rule would clarify that, agents would use under this proposal Guggisberg Wins of 16 different buyers. after completion of this one-time to determine whether a producer is Reserve Champion; Cambridge Packaging, Cam- transition, any new dairy animals eligible for the one-time transition; bridge, OH, was the largest that a producer adds to a dairy farm and the proposed implementation Middlefield Original purchaser of auction cheeses would need to be managed organi- approach for the rule. including a 50.96 pound cut cally from the last third of gesta- Public comments may be sub- Cheese Takes Open Guggisberg’s Reserve Champion tion or sourced from dairy animals mitted via the federal e-rulemak- Class Honors cheese at $55.00 per pound for that already completed their tran- ing portal, at www.regulations.gov, Sugarcreek, OH—Pearl Valley a total of $2,802.80. Cambridge sition into organic production. no later than Dec. 2, 2019. Cheese of Fresno, OH, was offi- also purchased $1,000 of cheese in cially crowned Grand Champion the People’s Choice cheese event. of the 2019 Ohio Swiss Cheese Other auction buyers included: Contest, here last week during the  Troyer’s Trail Bologna, Ohio Swiss Cheese Festival. Dundee, OH; $2,725 total The annual cheese auction cel-  The Hummel Group, Berlin, ebrating the competition raised OH; $2,656.80 total $25,014.60, up from 2018’s auc-  Walnut Creek Cheese, Wal- tion which raised $23,487. nut Creek, OH; $2,540 total The winner tabulated the high-  McElroy Packaging, est scores in three annual Swiss Wooster, OH; $2,425 total cheese contests held throughout  Troyer Cheese, Millersburg, the year. OH, $2,265.00 Pearl Valley won all of the  Lipari Foods, Warren, MI, three contests and was named $1,700 total Grand Champion.  Superior Tank, Strasburg, Guggisberg Cheese of Mill- OH, $1,275 total ersburg, OH, won the Reserve  Mega Sales, Cleveland, OH, Champion award with the second $900.00 total highest overall score in the Swiss  Weaver’s Furniture, $900 cheese classification.  Supply One, Cleveland, In the Open classification, the OH, $850 total overall Grand Champion cheese  Pleasant Valley Concrete, maker award was presented to $800 Guggisberg Cheese for its Maas-  Commercial & Savings dam cheese. Bank, $750 total In the Ohio Swiss Festival  Wayne Garage Door, $725 Contest’s Swiss category, second  Vilutis & Company, Frank- place went to Guggisberg Cheese, fort, IL; $500 total while third place went to Broad  Holmes Rental; $200 Run Dairy of Dover, OH. Proceeds from the auction are Broad Run Dairy also placed shared between the Ohio Swiss first in this year’s People’s Choice Cheese Association and the Ohio event. Swiss Festival. In the Ohio Swiss Festival Every fall since 1953, Sugar- Contest’s open class, Middlefield creek, OH, hosts the event cel- Original Cheese Cooperative ebrating the rich cultural heritage of Middlefield, OH, took home of Switzerland. From cheese sam- first place with its Sharp Ched- plings to contests, and parades, dar. Guggisberg won second place the Festival is sponsored by the with a Maasdam entry, followed Ohio Swiss Cheese Association, by Middlefield Cheese in third Sugarcreek Business Association, place with a Mild Cheddar. and the Village of Sugarcreek. For more information, visit www.caloris.com October 4, 2019 CHEESE REPORTER Page 15

In addition to manufacturing, Commodity Risk Management Group, AMPI Marks 50 AMPI has long been engaged in Years Since It Was the dairy policy arena, understand- Rice Dairy Partner To Form Vault ing the impact federal policies Chicago—Rice Dairy, LLC, based relationship with Rice Dairy. We Established have on members’ farm and co-op in Chicago, and Commodity Risk have always been friendly com- New Ulm, MN—Fifty years ago business. AMPI remains an active Management Group, Platteville, petitors with great respect for each Tuesday, on Oct. 1, 1969, Mid- voice through grassroots efforts, WI, have announced a partner- other while sharing the same val- west dairy farmers came together dairy policy groups and the AMPI ship between the two businesses to ues and integrity. to form Associated Milk Producers Political Action Committee. create a single brokerage company, “When I looked at next steps in Inc. (AMPI). “Today’s anniversary is possible Vault Ag Holding Company, LLC, company growth, Rice Dairy was For a number of years, AMPI because of the foresight and busi- that will service the dairy and agri- a natural choice to partner with had three different regions, but the ness sense of Midwest dairy farm- culture industries. as we complement each other in old Morning Glory Farms Region ers who came together to form this Rice Dairy is a dairy brokerage numerous ways,” North contin- of AMPI was acquired by Foremost cooperative. They did so at a criti- company — its principals are Brian ued. Farms USA in the mid-1990s, and cal point of change in our industry Rice and Peter Turk — that has Under Vault, the combination AMPI’s Southern Region was one and our nation,” commented Steve provided price risk management will bridge Vault Technologies of the four dairy cooperatives that Schlangen, AMPI chairman of LLC and Commodity Risk Man- solutions throughout the dairy teamed up to form Dairy Farmers the board and a dairy farmer from value chain since 2002. agement Group’s customer/broker Albany, MN. of America in the late 1990s. “When I started Rice Dairy back CRM system as well as their insur- “As an AMPI member, I’m The current AMPI is the former in 2002, my vision was to arm our ance agencies, Rice Dairy Risk proud to partner with fellow dairy AMPI North Central Region, the clients with the right tools and Services, LLC, and Commodity farmers in owning the manufactur- information for participation in Insurance Services. third region that made up the old ing infrastructure needed to deliver a very competitive marketplace,” “This is a very exciting com- AMPI. The current co-op is owned great-tasting dairy products to the said company founder Brian Rice. bination not only for our two by dairy farmers from Wisconsin, marketplace from the milk pro- “My vision is now backed with companies but for the agricul- Minnesota, Iowa, Nebraska, South duced on my farm,” Schlangen a high level of risk management tural and dairy industries as well,” Dakota and North Dakota. continued. offerings. The proof of our success Turk said. “We both have focused Today, AMPI members annually “We’re thankful to the co-op’s is found in our continued customer on building platforms with out- market about 5.7 billion pounds founders for the vision they had satisfaction. standing personnel that provide of milk, generating $1.7 billion in in 1969 and look forward with “Combining forces with Com- services that the customers need sales. Together, AMPI members excitement to the next 50 years of modity Risk Management Group and want. And though we both own 10 Midwest-based manufac- AMPI,” Schlangen added. will elevate our suite of price risk have strong brands in our respec- turing plants that produce cheese, New in 2019, AMPI launched management services for years to tive sectors, we chose Vault as our butter, and powdered dairy prod- the Dinner Bell Creamery brand come,” Rice added. banner, a signal that technology ucts. The cooperative’s products and accompanying Co-op Crafted Commodity Risk Management will lead the way.” are marketed to foodservice, retail Promise. For more information, Group, owned by Mike North, is The Vault companies will have and food ingredient customers. visit dinnerbellcreamery.coop. an agricultural brokerage com- about 1,700 brokerage accounts, pany that specializes in price risk over 450 technology users, and management services. The com- 400 insurance clients with three pany’s clients include grain and partners overseeing 31 personnel. hog farmers, cattle ranchers, and Vault’s corporate office will be dairy producers. The company was based in Chicago along with seven established in 2014. branch offices from the Rice Dairy/ “Our focus at Commodity Risk CRMG combination, including Management Group has been two in Illinois, two in Iowa, and strong in many agricultural mar- one each in Wisconsin, California kets,” North said. “My longstand- and Missouri. ing involvement in the dairy For more information, visit industry has allowed me a great www.vaultag.com. At H&C we are constantly developing solutions Superior Solutions to enhance eﬃciency and drive growth FLOOR DRAINS

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voting milk volume to amend or in make allowances, the elimina- Farm Bureau Backs Updated Make issue a federal order. Currently, tion of make allowances or index- Allowances, Expanded Price Discovery a referendum needs only two- ing make allowances to factors such thirds of the voting producers or as inflation, labor or energy costs. Washington—The American principles and policy consider- two-thirds of the voting milk to Farm Bureau Federation (AFBF), ations for federal order reforms. be approved, the working group Expanding Price Discovery in a federal milk marketing order The document released this week noted. The working group’s number three reform proposal released Wednes- reflects the consensus of the work- priority is to expand price discov- day, backs updating make allowing group members and is intended Updating Make Allowances ery. ances and expanding price to be used to inform grassroots pol- The working group’s number two Currently, mandatory dairy discovery, among other recom- icy development. priority is to update federal order price reporting regulations require mendations. make allowances. United States Department of Agri- Last January, voting delegates Federal Order Voting Changes Currently, federal order milk culture (USDA) to collect and to AFBF’s annual meeting rec- The AFBF working group’s num- prices are based on end-product release sales information only for ommended to the AFBF board of ber one priority for federal order pricing formulas, which include products used in federal order pric- directors that the organization con- reform deals with voting in a fed- make allowances that range from ing formulas, including Cheddar vene a Farm Bureau- and producer- eral order amendment referendum. $2.17 per hundredweight for Class cheese, butter, dry whey and non- led coalition to review methods to Currently, there are two meth- II and Class IV to $3.17 per hun- fat dry milk. restructure and modernize the cur- ods for ballot casting in a producer dred for Class III, the working Data from USDA reveals that rent federal order system. referendum process: individual group noted. the agency’s mandatory pricing sur- The working group was tasked ballots and bloc voting by coop- Since make allowances are fixed vey captures only a small percent- with identifying a solid base of eratives. Independent eligible pro- but milk prices fluctuate, the make age of US dairy plants and a small federal order guiding principles ducers receive an individual ballot, allowance as a share of the value of percentage of the milk solids and that enable AFBF members and while qualified cooperatives can milk is higher when milk prices are dairy products produced, the work- staff to be involved in conversa- choose to bloc vote on behalf of lower and lower when milk prices ing group said. tions and policy development on their producer-members, in which are higher, the working group said. The working group recommends how to: reform and modernize case those producers do not receive For example, in 2014, a $3.17 Class expanding mandatory price report- milk pricing and revenue pool- an individual ballot. III make allowance was equal to ing to include more value-added ing provisions while preserving The working group supports the 14 percent of the annual average dairy products, as well as manda- orderly marketing conditions in elimination of bloc voting by dairy Class III price of $22.34 per hun- tory price reporting for prices paid dairy; ensure dairy farmers across co-ops, but does not support modi- dred. In 2018, the same Class III for milk and milk components. The the US have a voice, and a vote, fied bloc voting. Under modified make allowance represented 22 working group also recommends when considering how to modern- bloc voting, independent produc- percent of the value of Class III that any expansion of mandatory ize these orders; and identify the ers receive a ballot and then coop- milk ($14.61 per hundred). price reporting be separate from opportunities and challenges in erative-member producers may Over the last decade, make modifications to end-product pric- marketing orders that farmers will petition to vote independently. allowances have totaled more than ing formulas and minimum price likely face in setting their course The co-op can then bloc vote for $30 billion in credits to processors, enforcement. to reach their goals. all remaining members who did according to the working group. The working group held two in- not petition for a separate ballot. The working group supports Reforms For Southeastern Orders person meetings at the AFBF office Upon the removal of bloc vot- making make allowances equal The working group’s fourth priority in Washington, DC, one in June ing, the American Farm Bureau to a percentage of the commod- is to reform pooling criteria imme- and one in September. From June Federation working group supports ity value on a commodity-by-com- diately and eliminate transporta- through September, Farm Bureau the termination of the provision modity basis. This would improve tion credits in southeastern federal economists and other contributors eliminating an entire federal order risk sharing along the supply chain, orders. The southeastern region is prepared 15 background papers at following a “no” vote on a referen- provide a higher make allowance comprised of 12 states: Louisiana, the request of the working group dum to amend the order. credit when wholesale dairy com- Arkansas, Missouri, Mississippi, members. The working group supports modity prices rise and reduce the Alabama, Tennessee, Kentucky, At the September in-person modifying the referendum approval make allowance when commodity Florida, Georgia, South Carolina, meeting, working group members threshold to require a two-thirds and milk prices are low. North Carolina and Virginia. reviewed each of the background majority of the voting producers The working group did not sup- All federal orders contain provi- papers and identified priorities, and a two-thirds majority of the port an across-the-board increase sions to help balance milk supplies, such as diversion limits, delivery day requirements and supply plant Superior ingredients. Innovative solutions. ©2019 Agropur MSI LLC shipping requirements, the working group noted. The Southeast and Appalachian orders also include transportation subsidies. The qualification criteria and diversion limits in the Florida order are the strictest in the US, while the Southeast and Appa- lachian orders have more liberal Contact us today. rules, making it easier to qualify To learn how our Capstone® anti-caking agents and producers and supply plants as well Keystone® stabilizer systems can be custom formulated to as divert milk on the order. meet your exact application and label needs. The working group supports immediate reform of pool qualification criteria and transportation agropuringredients.com credits in the Southeast and Appa- [email protected] lachian orders. And it supports the qualification criteria in Florida being applied to both the Appa- lachian and Southeast orders and emphasizes the 10-day-per-month delivery requirement to discour- age out-of-area milk from riding the pool. The working group also opposes transportation credits in the Southeast and Appalachian For more information, visit www.agropuringredients.com orders. October 4, 2019 CHEESE REPORTER Page 17

also doing great,” Edmonson said. helps to explain why private label Supermarkets To Survive Retail Apocalypse; “Store brands are supposed to sales are surging, even if the stock Store Brands, Smaller Packages Trending appeal to those wanting to make market is high and unemploy- their money go further.” ment is low,” Edmonson said. “In Washington—While more brick- annual income growth in low- and If the stock market is setting the long run, concentrating more and-morter stores succumb to middle-class America is sluggish records and unemployment is at wealth among fewer households online retail giants like Amazon, and shoppers are unwilling to historic lows, shouldn’t more shop- will not be good news for private supermarkets in the US are pre- splurge. pers be in the mood to splurge? label – even price-conscious shop- dicted to not only survive the Brad Edmonson, writer, consul- Why are people still looking for pers won’t buy as much, because “retail apocalypse,” but prosper. tant, and former editor of American bargains? You can find the answer they’ll have less to spend.” The Private Label Manufactur- Demographics magazine, said store by looking at how much lower and Finally, Hans Kraak from ers Association (PLMA) recently brands saw a dramatic surge in middle-class people are earning, PLMA’s international staff reported reported that a different set of sales last year at mass retailers like Edmonson said. that a number of US food trends retailers – particularly supermar- Walmart and Costco. “Despite all the news about are beginning to make headway in kets – are becoming increasingly Sales of store brands at super- the booming economy, the full- the EU, including super-healthy relevant to US consumers. markets and drug stores remained time annual earnings of men and food outlets where shoppers can Not only are grocery retailers steady, he said. PLMA estimates women actually decreased 1.1 per- meet the needs of their personal opening more stores – supermarket that private label sales totaled cent between 2016 and 2017,” he diets, along with the possibility of openings are up roughly 30 percent $128.6 billion in the US during said. “The fact is, low and middle- personalized, diets. from last year – they are also tak- 2018, and accounted for 22.3 per- income households have been suf- The number of people eating ing opportunities to open in new cent of overall market share. fering for almost two decades.” vegetarian and vegan food is grow- types of locations, including malls, “The puzzling part of store “Sluggish income growth for ing, with Germany as the leading said PLMA’s Roy White. It’s part of brands is that the economy is the bottom half of US households market. the supermarket sector’s newfound energy to break the paradigms of the last 75 years. Shoppers Will Pay For Smaller Portion Sizes, Less Packaging In recent years, the trend has been consumers opting for larger products, said PLMA’s Maureen Dono- ghue. When it came to sizing a product, the item often got larger – family size, mega size or the infa- mous “super size.” Retailers commonly increased sales by increasing the quantity, she said. However, that “one super size” mentality no longer fits today’s shopper. The new trend in shopping is to spend more for less, Donoghue said. According to the US Census We look at cheese differently. Bureau, 35.7 million Americans live alone as Millennials delay marriage and Baby Boomers enjoy a longer life expectancy. Solo households make up 28 percent of our homes, she said. “There are more consumers shopping for one or two people rather than for an entire family,” she said. “It’s a growing percentage of shoppers retailers are starting to market to.” This is the shopper that wants less – less waste, less packaging, and less calories, she continued. “Pre-made food items are already a staple in many stores as shoppers understand the value in prepara- tion,” Donoghue said. Having snack-size items also helps with portion control, she At Deville Technologies we do more than We deliver ultra hygienic food cutting said. The shopper who is trying not just provide cheese processing companies solutions that operate effectively and to over-eat will often pay more for with the perfect shred, dice, shave and grate... efficiently. We partner with our clients to a smaller size. we keep the whole solution in mind. custom design the solution that best meets their Smaller items also get approval food cutting needs...because we don’t just see cheese, from a sustainability viewpoint, we see the whole picture. Donoghue continued. In addition to less food wasted, there’s less packaging. Urban shoppers likewise appreciate the ease of storing FS40 line with powder dispenser, smaller quantities in tinier spaces. tumble drum and conveyor

Private Label Up Despite Healthy Economy, Low Unemployment Come see us at: 1.866.404.4545 www.devilletechnologies.com Private label grocery sales continue ICTE – April 17-19, 2018 Milwaukee, WI – Booth 801 to grow despite a healthy economy and record unemployment because For more information, visit www.devilletechnologies.com Ad – Cheese Reporter-REV.indd 1 2018-03-02 9:09 AM Page 18 CHEESE REPORTER October 4, 2019

GMA report, the CPG industry GMA To Become supports 20.4 million jobs that gen- Fourth-Generation Rumiano Cheese Consumer Brands erate $1.1 trillion in labor income, and contribute $2 trillion to the Company Celebrates Centennial Association In 2020 US GDP. Arlington, VA—The Gro- “Renaming and rebranding this cery Manufacturers Association organization is symbolic of a larger (GMA) recently announced that realignment with the CPG indus- it will become the Consumer try’s consumer-first priorities and Brands Association (CBA), effec- our desire to have a more open and tive January 2020. transparent dialogue with policy- GMA will continue to oper- makers, customers and consum- ate as the Grocery Manufacturers ers,” said Jeff Harmening, GMA’s Association through the end of chairman of the board and CEO of 2019. General Mills. The new identity is part of an Freeman also created a new overhaul of the 110-year-old trade leadership team to drive forward association, led by Geoff Freeman, the new agenda, including: Bryan GMA’s president and CEO, and Zumwalt, executive vice president the GMA board of directors. of public affairs; Dr. Betsy Booren, “We represent an industry of senior vice president of regulatory iconic brands that are innovative, and technical affairs; Stacy Papa- From left: Rumiano Cheese Company co-owners Baird Rumiano, Tony Rumiano, Raymond dopoulos, general counsel and Rumiano and John Rumiano. Both Baird and John are third-generation; Tony is Baird’s son forward-looking and touch the and Raymond is John’s son. lives of every American,” Freeman senior vice president of operations said. “ and special initiatives; Brandon Willows, CA—California’s old- in infrastructure and technology, GMA’s new advocacy agenda Partridge, senior vice president of est family-owned cheese company facility expansion, and entry into represents the broader interests of member engagement; Mike Gru- marked 100 years of operation entirely new segments. a modern CPG company by focus- ber, vice president of federal affairs; here several weeks ago, flanked Rumiano sells its cheese across ing in four core pillars: enhancing Tom Madrecki, vice president of by customers, fellow cheese mak- the US, Mexico and Asia. Prod- packaging sustainability; cham- supply chain and logistics; Katie ers, friends and family. ucts are currently available at over pioning smart regulation; creat- McBreen, vice president of com- The Rumiano Cheese Com- 2,000 retailers including Costco, ing frictionless supply chains, and munications and research; Bill pany’s milestone achievement Whole Foods Markets, Raley’s, building trust in CPG, while also Pappas, vice president of account- of 100 years in business was offi- and natural food stores. advancing a narrative about the ing and financing; and Meghan cially marked on Aug. 25, 2019. The company recently industry’s social and economic Stasz, vice president of packaging To commemorate its centenary, announced plans to increase its impact. According to a recent and sustainability. the company held a gala event to footprint in traditional grocery thank its customers, business asso- chains and will double its current ciates and staff. distribution to 4,000 stores. “It was a wonderful evening of “As we drive forward and USDA News celebration,” said co-owner John embark on the next 100 years, we A New Product that is officially accepted* Rumiano. “We were joined by have no shortage of bold ideas, for use in Dairy Plants inspected by the customers, vendors, friends and big plans, and the responsibility to United States Department of Agriculture (USDA) California cheese maker. We’ve support what matters most,” said under the Dairy Plant Survey Program. known many of the guests for over Rumiano Cheese CEO Joe Baird. *USDA Project Number 13377 40 years, and we couldn’t have “We’re committed to raising reached this milestone without the bar in the way we help and TC Strainer Barrier TC Elastomer Gasket TC Strainer Gasket their support.” support our dairy farmers, and “Our family is so very proud we’re committed to integrating of the 100-year accomplishment, greater regenerative agriculture and it gives us pride and gratifi- and production practices that pro- cation to know that we have so mote the long-term sustainability many people who support us, our of the planet,” Baird continued. dairy partners, and the industry,” “We wouldn’t be here today

Elastomer ID Rumiano said. “Our fourth- and without our 27 dairy farm part- No perforations in this area fifth-generation family members ners and our nearly 200 dedicated The Strainer Barrier can be, but is not limited to, Stainless Steel Grade 304, 304L, 316 and 316L and is – along with my brother and I – employees, many of whom have bonded to an elastomer to form a Strainer Gasket. The Strainer Barrier consists of a circular disk with a plurality of perforations of various diameters** in a specific pattern that are completely within a specific sized are looking forward to a successful been with us for decades,” added circle that is concentric to the OD of the disk. The circle diameter is less than that of the ID of the elastomer future and the next 100 years.” Baird Rumiano, president and gasket portion so there can be no chance of the elastomer migrating into any particular perforation during the molding process which would create crevices. In addition, there are a plurality of specific sized holes in a Rumiano Cheese Company has owner. radial pattern between the OD of the disk and the cylindrical ID of the elastomer gasket. In the molding been in the dairy business since “Our dairy families, employ- process, the elastomer will fill in these holes from both sides yielding a much more secure adhesion between 1919. Headquartered in Willows, ees and the local communities of the strainer disk and the elastomer gasket portion. **The holes could also be oblong, rectangular or square in various dimensions. Fluoropolymer is also available, e.g. PTFE, Strainer Barrier/Gasket and any other 3-A CA, with a production plant in Crescent City and Willows have Strainer Barrier/Gasket Material. TC = Tri-Clover®, formerly Tri-Clamp®, Style shown. BSI, DIN & ISO Styles Crescent City, CA, the company been integral to our success,” said are also available. employees nearly 200 workers. co-owner and company president Product Materials are compliant with the following applicable 3-A Sanitary Standards: • 42-02 In-Line Strainers for Milk and Milk Products. • 63-03 Sanitary Fittings. Fourth-generation Joby, Tony Baird Rumiano. • 18-03 Multiple Use Rubber and Rubber-Like Materials. and Raymond Ruminao produce “As we embark on this next • 20-17, currently 20-27, Multiple-Use Plastic Materials. Product Materials are also compliant with the following applicable Standards: three lines of award-winning century, we are fortunate to have • ASTM A240/A240M, Stainless Steel AISI 300 Series. organic and artisanal cheeses: our fourth and fifth generation • US FDA 21CFR177.2600, Rubber Articles Intended for Repeated Use. • US FDA 21CFR177.1550, Fluoropolymers For Use as Basic Components of Single and Repeated Use. Ruminao Organics, California family members lead the way with • USP Class VI Tests, 2004: USP 27, NF 22, 2004, <88> Biological Reactivity, In Vivo. Crafted and Rumiano Redwood innovative ideas, bold products • USP MEM Elution Cytotoxicity, 2004: USP 27, NF 22, 2004, <87> Biological Reactivity, In Vitro. Coast. and new solutions for a brighter • EU 1935/2004(3)EC, Food Contact Regulations. • EU 2011/65/EC, ReCast of EU 2002/95/EC RoHS Directive The company plans to release future,” he said. Patent Pending: B1527.101.101, August 17, 2016 a fourth product line centered Editor’s note: Cheese Reporter Licenses issued by the Provisional Patent Holder for the manufacturing, marketing and sale of the on functional nutrition later this published an extensive story on Rumi- Strainer Barrier and Strainer Gasket to: year. The new organic line is also ano Cheese titled “Rumiano Cheese, G-M-I, Inc.® designed to boost energy and cog- A Pioneer In Organic Cheese, Marks 4822 East 355th Street, Willoughby, Ohio 44094-4634 USA nitive performance. 100 Years...” in the May 31, 2019 Fon/Fax: 440-953-8811/-9631 Rumiano Cheese has likewise issue. We make that article available Email: [email protected] • Url: www.gmigaskets.com Rev 20161128 planned for increased research at: www.cheesereporter.com/compa-

For more information, visit www.gmigaskets.com and development, reinvestment nyfocus.htm October 4, 2019 CHEESE REPORTER Page 19

foods prepared at home, 67 per- Financial considerations are the Sustainable Diet Can Include Animal cent threw out fresh produce and main reason people think about And Plant Proteins: 66% Of Consumers 50 percent tossed leftovers from food waste, no matter the loca- restaurants. tion, with “reducing the amount of New York—Two-thirds (66 per- and “locally raised” (32 percent). No other foods, including dairy money spent” cited by 42 percent cent) of consumers recently sur- And 21 percent of respondents products, eggs, meats or shelf- while grocery shopping, when eat- veyed by the IFIC Foundation associated animals that were fed an stable items, were reported to be ing out and when eating at home. think an environmentally sustain- organic diet with environmentally wasted by more than 27 percent. Age correlates with these able diet can include protein from sustainable animal protein. So why does food get wasted responses while grocery shopping, both animal sources and plant- “Environmental sustainability at home? In a question that asked with 45 percent of those under 45 based sources, while only 10 per- is clearly on the mind of many consumers to choose their top years old citing the money they cent disagreed. consumers, but sometimes in ways two reasons, 83 percent reported spend as their top food-waste con- The IFIC Foundation last week we might not expect,” said Joseph spoiled or stale food as the most sideration, but only 32 percent released two studies — A Survey Clayton, CEO of the IFIC Founda- common reason foods ended up in of those 65 and older offered the of Consumers’ Attitudes and Percep- tion. “For instance, some consider the trash, followed by cleaning out same response. tions of Environmentally Sustainable nutritious food or recognizable the pantry (49 percent) and oth- Many consumers report ways and Healthy Diets and A Survey of ingredients as part of an environ- ers in the household who simply they try to reduce food waste: 60 Consumer Behaviors & Perceptions mentally sustainable diet.” didn’t want to eat the foods. percent store their foods to maxi- of Food Waste — at the Future of In terms of where consumers mize shelf life, 54 percent keep Food Summit, co-hosted by Mer- Dairy Not Wasted Frequently make food choices, waste is always their pantries organized, 51 per- edith Corp.’s EatingWell. When asked to choose the top on the mind of 34 percent of con- cent make grocery lists and 48 Regarding protein, there was three types of food that most often sumers while grocery shopping, 28 percent make meal plans. Among an education gap in the responses, end up in the garbage, 74 percent percent while eating at home and those who eat out, 62 percent take with 73 percent of college gradu- of consumers discarded leftovers of 19 percent while eating out. leftovers home. ates agreeing that an environmentally sustainable diet can include protein from both animal sources and plant-based sources, versus 62 percent of non-graduates. Animal-based proteins domi- nate US diets, with 92 percent of respondents reporting that they consume protein from animal sources like dairy, meat, eggs and seafood. Age influences protein consumption: consumers under 45 Your Business Creates Unique Challenges years of age are less likely to consume animal proteins (88 percent), while those 65 and older are much ...We Provide Solutions more likely to do so (98 percent). Nearly three-quarters (72 percent) of respondents report con- suming protein from plant sources. But here too there was an education gap, with 80 percent of college graduates saying they consume plant-based proteins versus 66 percent of non-college graduates. Taste was by far the most important factor behind those dietary choices, cited as the top reason for 81 percent of those who consume animal proteins and by 73 percent DR Tech EZ Whey Belt DR Tech EZ Whey Waterless Cookers of those who eat plant-based pro- Vertical Filler teins. When people were asked how much of each source of protein they would need to consume to Throughout the world, DR Tech’s dairy processing equipment has been used by a host of eat an environmentally sustain- diff erent businesses, from large to small, each with diff erent needs. able diet, the responses varied. Only one-quarter said they would need to consume more plant-based With years of technical expertise, D.R. Tech works closely with you to engineer solutions; protein, while 38 percent said designing and building the equipment customers need in accordance with their supplied such a diet would require the same specifi cations. amount of plant protein, and 11 percent said it would require less. • Conveyors • Stainless Steel Tanks When it comes to animal pro- • EZ Whey draining and matting belts • Hard & Semi-Hard Pre-Presses tein, one-quarter (26 percent) said they would need to consume less to • Cheese Dicers • Waterless Cheese Cookers attain an environmentally sustain- • Carousel Vacuum Presses • Rotator Line Systems able and healthy diet, while slightly • Form Washing Solutions • Automated Brine Systems. more than half (53 percent) said it would require the same amount or more protein from animal sources. DR Tech, Inc. 1-800-815-6761  Fax: 715-463-5218 Consumers were also asked what comes to mind then they think of www.drtechinc.com  e: [email protected] environmentally sustainable protein. “No added hormones” topped From Design...To Production...To Installation...Through Operation the list at 50 percent, followed by “grass-fed animals” (40 percent) For more information, visit www.drtechinc.com Page 20 CHEESE REPORTER October 4, 2019

The innovation strategy being business model. ment of the nutritional profile of France’s Bel Group implemented by Bel is aimed Bel has redefined its corporate its recipes, sustainable farming, Plans To Develop at making its brands even more mission through its commitment to recyclable and/or biodegradable inclusive, to further anchor them “champion healthier and respon- packaging, the fight against cli- Hybrid Products in the reality of the food chal- sible food for all,” to develop the mate change, and accessibility of That Combine Dairy, lenges faced by the countries inclusiveness of its brands in the its products. where Bel operates. The Laughing growing market for healthy snacks. The following concrete commit- Plant-Based Material Cow brand extensions, including a “Food for all has been in Bel’s ments are subject to improvement Paris, France—The Bel Group new organic reference as well as a DNA from the start, thanks to our plans, the company said: announced last week that it is more affordable reference “Milky single-serving portions model, on  Improving recipes for shorter making a major strategic turn Delight” for emerging countries, which our unique product port- ingredient lists and optimizing and innovating to develop hybrid illustrate Bel’s determination to folio is based,” Beliot said. “Our product nutrition profiles. Bel has products that integrate dairy and adapt and move closer to its mar- success is built on a determina- also announced the elimination of plant-based raw materials. kets. All the company’s brands are tion to make dairy goodness acces- all artificial flavors and colorants As early as 2020, Bel will offer subject to innovation plans to help sible to families all over the world, in its products by 2021. recipes that combine dairy raw deliver inclusive and responsible and our goal today is to go further  Achieving packaging that materials with vegetables or legu- healthy snack solutions to Bel’s by inventing new products and is 100 percent recyclable and/or minous plants. Such innovations markets. offering consumers inclusive and biodegradable by 2025. Today, 81 will enable the company’s brands Antoine Fievet, Bel Group responsible brands.” percent of the packaging used by to offer new alternatives adapted chairman and CEO, and Cecile Bel Group said it is committed Bel can be recycled or is biode- to a diverse range of consumer Beliot, Bel Group executive presi- to an ambitious program to address gradable. expectations and nutritional needs dent, last week presented Bel’s new the responsibility challenges linked  Achieving carbon neutral sta- in the healthy snack space, accord- growth strategy, which is founded directly to its business activity, tus for the company’s operations by ing to the Bel Group. on a responsible and profitable namely the continuous improve- 2025.  Fostering sustainable dairy farming. Working alongside WWF France for more than seven years, Bel is rolling out an international charter to all its dairy production basins by 2025. The charter provides guidelines for the evolving practices of Bel and its partner dairy farmers to promote, for exam- “Where The Dairy Industry Do Busin s”TM ple, GMO-free food for dairy herds, pasture grazing and new farming business models. GLOBAL CHEESE TECHNOLOGY FORUM Nestle To Close November 5 - 7, 2019 Tinned Milk Factory Peppermill Resort Reno, NV In Australia Rhodes, NSW, Australia—Nestle recently announced plans to close DAIRY PURCHASING & its Tongala factory in Victoria, Australia, which primarily pro- RISK MANAGEMENT SEMINAR duces tinned milk products. “People just don’t buy tinned November 13 - 15, 2019 milk like they used to, and cheaper InterContinental Hotel imports have eroded our business Chicago, IL further,” said Andrew McIver, the Co-hosted with CME Group factory’s general manager. “At the same time, the equipment in this Conference Sponsors: factory is old, and the investment California Dairies & Hoogwegt US , Inc we need to make sure it can operate reliably in the future means that the factory is no longer via- WEBINAR: Fractionation Processes ble.” for Successful Dairy Ingredients Nestle has in recent years invested to improve the viability of the factory by adding new prod- December 12, 2019 uct ranges. These ranges “have sup- Speakers: Geoffrey Smithers & Michael Culhane Ph.D. ported the factory, but as milk is ADPI Center of Excellence Members the bulk of what the factory makes, Sponsored by: Synder Filtration the newer ranges aren’t enough to maintain manufacturing at the site,” McIver said. REGISTER TODAY AT WWW.ADPI.ORG Over the next 12 to 18 months, all production at the factory will progressively move, mostly to Nes- 1ST QUARTER 2020 ADPI “CAN’T MISS” EVENTS tle factories overseas, with final closure anticipated between late 22ND DAIRY INGREDIENTS TECHNOLOGY ADPI/ABI ANNUAL CONFERENCE 2020 and mid-2021. SYMPOSIUM April 26 - 28, 2020 Following the closure, the site March 17 - 19, 2020 Hyatt Regency Downtown, Chicago, IL will be vacated and sold. Equip- Hilton Beachfront Resort, Santa Barbara, CA Platinum Sponsor: Agropur ment currently at the site is either owned by Nestle or leased, and as 126 N. 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ADPI_October19_cr.indd 1 9/16/2019 2:32:18 PM October 4, 2019 CHEESE REPORTER Page 21

August Dairy Trade Whey protein concentrate down 4 percent; Germany, 11.3 US Butter Imports exports during August totaled 22.4 million pounds, down 11; United (Continued from p. 1) Jan – Aug 2012 - 2019 million pounds, down 21 percent Kingdom, 10.7 million pounds, Importmillions of pounds Leading markets for US dairy from August 2018. WPC exports up 6; Norway, 10.3 million exports, on a value basis, during during the first eight months of pounds; and Ireland, 10.2 million 60 the first eight months of 2019, this year totaled 174.5 million pounds, up 36 percent. 55 with comparisons to the first eight pounds, down 29 percent from the The value of other (non- 50 first eight months of last year. cheese) US dairy imports during months of 2018, were: Mexico, 45 $983.1 million, up 7; Canada, Lactose exports during August August was $145.6 million, up 40 $450 million, up 4 percent; China, totaled 69.6 million pounds, down 17 percent from August 2018. $250.4 million, down 33 percent; 9 percent from August 2018. During the first eight months of 35 South Korea, $236.9 million, up Lactose exports during the Janu- 2019, the value of other dairy 30 ary-August period totaled 562.7 exports was $1.26 billion, up 16 percent; Japan, $196 million, 25 million pounds, down 9 percent 11 percent from the first eight up 5 percent; and Philippines, 20 $173.9 million, up 1 percent. from a year earlier. months of 2018. Cheese exports during August Butter exports during August Leading sources of other US 15 totaled 58.5 million pounds, down totaled 3.4 million pounds, down dairy imports during the January- 10 6 percent from August 2018. 34 percent from August 2018. But- August period, on a value basis, 5 Cheese exports during the first ter exports during the first eight with comparisons to a year ear- 2012 2013 2014 2015 2016 2017 2018 2019 eight months of 2019 totaled 544.5 months of 2019 totaled 27.9 mil- lier, were: New Zealand, $299.5 million pounds, up 2 percent from lion pounds, down 33 percent from million, down 1 percent; Ireland, the first eight months of 2018. the first eight months of 2018. the first eight months of 2018. $232.5 million, up 18 percent; Butter imports during this period Leading markets for US cheese August exports of ice cream Canada, $135.3 million, up 18 totaled 59.5 million pounds, up 30 exports during the January-August totaled 13.7 million pounds, up percent; Mexico, $107.4 million, percent from a year earlier. period, on a volume basis, with 3 percent from August 2018. Ice up 15 percent; and Netherlands, Casein imports during August comparisons to the same period in cream exports during the January- $92.3 million, up 33 percent. totaled 7.6 million pounds, up 43 2018, were: Mexico, 133.8 million August period totaled 109.5 mil- Imports of butter and other but- percent from August 2018. Casein pounds, down 10 percent; South lion pounds, down 6 percent from terfat products (primarily anhy- imports during the January-August Korea, 101.1 million pounds, up the same period last year. drous milkfat) during August period totaled 64.3 million pounds, 13 percent; Japan, 58.6 million August cheese imports totaled totaled 13.6 million pounds, up 13 up 16 percent from a year earlier. pounds, up 7; Australia, 32.2 mil- 35.6 million pounds, up 10 percent percent from August 2018. But- August imports of Chapter 4 lion pounds, down 16 percent; from August 2018. The value of ter imports during August totaled milk protein concentrates totaled Chile, 16.7 million pounds, up 6 those imports, $266.9 million, was 10.3 million pounds, up 22 percent 3.7 million pounds, up 117 per- percent; and Saudi Arabia, 15.4 up 17 percent. from August 2018. cent from August 2018. Imports of million pounds, up 27 percent. Cheese imports during the first Imports of butter and other Chapter 4 MPCs during the first Nonfat dry milk exports dur- eight months of 2019 totaled 247.3 butterfat products during the first eight months of 2019 totaled 69.6 ing August totaled 112.4 million million pounds, up 2 percent from eight months of 2019 totaled 88.4 million pounds, up 12 percent from pounds, down 18 percent from the first eight months of 2018. The million pounds, up 25 percent from the first eight months of 2018. August 2018. NDM exports dur- value of those imports, $829 mil- ing the first eight months of 2019 ion, was up 4 percent. totaled 944.4 million pounds, Leading sources of US cheese down 15 percent from the first imports during the January-August eight months of 2018. period, on a volume basis, with Exports of dried whey dur- comparisons to the same period ing August totaled 30.1 million last year, were: Italy, 56.4 million pounds, down 33 percent from pounds, up 25 percent; France, August 2018. Dried whey exports 29.9 million pounds, down 2 per- during the January-August period cent; Netherlands, 19.5 million totaled 235.6 million pounds, pounds, up 7 percent; Spain, 15.7 down 33 percent from the same million pounds, down 7 percent; period last year. 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PERSONNEL IAFRATE, Norseland Inc.; JEN- New Fuel Up to Play 60 Portable NIFER JOHNSON, Hormel Breakfast Carts Hit K-12 Schools Molly Pelzer Named Foods Corporation; TAMMY KAMPSULA, Giant Eagle, Inc.; Midwest Dairy CEO TOM LAROCHELLE, Lacta- Saint Paul, MN—Molly Pelzer lis American Group, Inc.; ERIC has been selected as the new CEO LE BLANC, Tyson Foods, Inc.; of Midwest Dairy, effective Tues- CHRISTIAN LEWIS, Hubert day, succeeding outgoing CEO Company; MICHELLE LIESZ- Lucas Lentsch. KOVSZKY, Butterball; JERRY Lentsch is leaving Midwest SUTER, Weston Foods, Inc.; Dairy for a leadership role with ERIK WATERKOTTE, Fresh Dairy Management, Inc. (DMI). Food Group; JOHN WELLEN- Pelzer, who is the organization’s ZOHN, Rich Products Corpora- third CEO in its 19 years of dairy tion; and KARRI ZWIRLEIN, history, most recently served as Tops Markets LLC. chief experience officer at Mid- west Dairy. TIM STEINKE has been pro- She began her dairy industry moted to acting director of engi- career in 1984 with Dairy Coun- neering at ESE, Inc. Steinke Pasco, WA—The Fuel Up to Play Cooling trays and assets on cil, Inc., followed by the Midland joined the company as a control 60 school nutrition program will the portable cart also provide Dairy Association – both former engineer in 2008 and has worked feature 10 new portable breakfast/ easy serving opportunities, reduc- checkoff organizations that are in the automation and process salad bar carts featuring lowfat ing the need for ice and other now part of the Midwest Dairy controls industry for 29 years. and fat free dairy products this resources needed to keep food region – working in various exec- His focus in the food and bever- school year. cool, as well as help provide easy utive leadership roles. age segment includes dairy, eggs, The carts are donated by Chelan clean-up for school food service “Given her leadership experi- sauces and energy drinks. Fresh, one of Washington’s larg- and maintenance staff. ence and longstanding commit- est suppliers of apples, pears and “On behalf of National Dairy ment to dairy farmers and the Denali Ingredients announced cherries, to Fuel Up to Play 60 Council, dairy farmers and the dairy checkoff program, Molly Tuesday that the role of company schools and will reach over 9,000 dairy community, we’re thank- embodies everything we want in president NEAL GLAESER will students, serving an estimated 1.1 ful to continue our longstand- Midwest Dairy’s next leader,” said expand to include the role and million meals annually. ing relationship with Chelan Allen Merrill, chairman of Mid- responsibilities of CEO of Denali This effort marks Chelan Fresh’s Fresh and their growers, and to west Dairy’s board of directors. companies. Glaeser will over- support of Fuel Up to Play 60 for have their support in nourish- “I am proud and humbled to see both Denali Ingredients and the eighth consecutive year. The ing schools and communities represent dairy farmers and Mid- Denali Flavors operations. He carts will be provided to recipient through the Fuel Up to Play 60 west Dairy staff as we continue to joined Denali Flavors, the licens- schools in Florida, Virginia, and program,” said Jean NDC presi- work with our partners to increase ing company of Moose Tracks ice Washington. dent Ragalie-Carr. sales and trust in dairy and rein- cream, in 2001. Five years later, force the importance of dairy Glaeser spearheaded the Denali foods and dairy farming to our Flavors purchase of former Cool communities” Pelzer said. Brands/Eskimo Pie ingredients company in New Berlin, WI. Powder Processing GAETANO AURICCHIO, Evaporator and Spray Dryer Systems executive vice president of Bel- Gioioso Cheese, Inc., has been Varcode has appointed JOSEPH for Safe, Efficient, Sanitary Processing named chairman of the Interna- BATTOE as its new president and tional Dairy Deli Bakery Asso- CEO. Battoe comes to Varcode Engineering solutions and exceptional ciation (IDDBA) 2019-20 board with more than 30 years of execu- technical support is what we of directors. Auricchio has served tive experience, recently serving provide when it comes to your on the IDDBA board since 2014. as an adviser to companies in the evaporator and spray dryer system. Other officers for 2019-20 are: MarTech and business services executive vice chairman, DOTTY sectors. Varcode also elected two EDT innovative technologies - board members: GIAN FULGONI designed to handle today’s process VANDERMOLEN, Advantage requirements for safe, efficient, Solutions; vice chairman, DOMI- and MITCH SINGER. sanitary processing. NIQUE DELUGEAU, Saputo Cheese USA; treasurer, PETER KATHLEEN DUFFY has joined  Whey and Whey Permeate SIRGY, Reser’s Fine Foods, Inc.; Rheolution, Inc. in Montreal,  Lactose and immediate past-chairman, Quebec as director of interna-  WPC industry consultant RICK FIND- tional sales in the company’s Life-  Milk Powders LAY. Industry leaders elected to sciences Division.  Cheese Powders serve three-year terms on the  Infant Formula IDDBA board are: STEVE BUFF- RECOGNITION INGTON, Give and Go Prepared Foods Corp.; CURT COOLIDGE, QUEST INDUSTRIAL earned Superior Cake Products, Inc.; three awards for its robotic DOMINIQUE DELUGEAU, engineering and sales support Saputo Cheese; MARK HAD- from FANUC American at the LEY, Albertsons Companies; recent FANUC Authorized Sys- CARMELA SEREBRYANY, tem Integrator Conference. The Upper Crust Ltd.; and DAVID three awards included the Intel- STEARLE, Land O’ Lakes Inc. ligence Robotics Award for sales Additional members include: leadership of products including JOHN ANDERSON, DecoPac, Vision, Force and Learning Vibra- Inc.; DARRYL BACON, Casey’s tion Control; Growth Award for Evaporator Dryer Technologies, Inc. 715.796.2313 • 715.796.2378 - FAX General Stores, Inc.; JODY outstanding growth of robot sales E-mail: [email protected] • BARRICK, UNFI Fresh; JOSH from 2017 to 2018; and Sales 1805 Ridgeway Street • Hammond, WI 54015 BICKFORD, Clyde’s Donuts; Leadership Award with 100+ Dis- www.evapdryertech.com SUZANNE FANNING, Dairy tinction for an exemplary level of For more information, visit www.evapdryertech.com Farmers of Wisconsin; HEATHER sales in 2018. October 4, 2019 CHEESE REPORTER Page 23

report said. These include those enhance protection, the report Cyberattacks Pose Rising Threat To stemming from the many com- said, and this may be the most Food Production And Safety: Report panies still using ICSs that were important change to make of all: developed before security was a extend your food safety and food St. Paul, MN—Cyberattacks pose For industrial control systems concern and can’t be updated. defense culture to cybersecurity. a rising threat to food production in general, all three factors are Although other industries have Plant workers are trained to and safety, according to a report present, the report said. Vulner- been the primary target of attacks incorporate food safety concerns recently released by the Univer- abilities are plentiful and many so far, it’s likely only a matter of into the plant workflow and man- sity of Minnesota’s Food Protec- are easy to exploit. The conse- time before the food industry is age food safety threats through tion and Defense Institute (FPDI). quences of exploiting them are attacked as the others harden their good manufacturing workflow Almost every week brings news real, as has been demonstrated by defenses, and the threats seek eas- design. This can include incorpo- of a new cybersecurity incident. actual attacks that have destroyed ier prey, the report stated. rating best practices and standards These typically effect companies equipment, caused environmental FPDI has identified several criti- into action steps in the workflow. and organizations in the financial, damage, and precipitated power cal steps food companies can take Cybersecurity threats have to retail, or healthcare industries or, outages and, more alarmingly, to protect themselves. First, foster become part of this threat mitiga- more recently, state and local gov- demonstrated the potential for more communication between tion and safety enhancing process. ernments, the report explained. injuring workers. your operations technology (OT) Finally, become involved, the They usually involve data breaches As also demonstrated by these and IT staff. This is critical for report recommended. The food or attacks that affect information attacks, the threats are out there: bridging the cultural gap and fully industry needs more representa- technology (IT) systems. people with the motivation, tools, understanding how ICSs and IT tion in ICS- and cyber-related But what about the food industry and skill necessary to carry out an systems interact. standards setting organizations, and the industrial control systems attack, the report pointed out. If Next, begin conducting risk such as the International Soci- (ICSs) it uses to process or manu- that wasn’t enough, the tools to assessments that include invento- ety of Automation (ISA), and in facture food? Are these companies, carry out the attack are becom- rying both ICSs and IT systems. nidustry-government partnerships, their critical manufacturing tech- ing more powerful and the skill Also, strongly consider using third- such as the Food and Agriculture nologies, and their customers also required to use them is declining. party cybersecurity audits of your Sector Coordinating Council. at risk from cyberattacks? The food industry is not exempt process controls. “This report can help food com- “The answer is unfortunately from this risk, the report said. Next, involve staff with cyber- panies learn about what could be yes, very much so,” the report It is already a frequent target of security expertise in the procure- coming their way and how to begin stated. criminals, including transnational ment and deployment process for protecting themselves,” said Ste- For a cybersecurity risk to exist, criminal organizations engaged in ICS devices. They can save you phen Streng, lead author. there needs to be a vulnerabil- large-scale food fraud, counterfeit- from “buying problems” by pur- To read the full report, visit ity in a system that, if exploited, ing, theft, and smuggling. chasing vulnerable devices. z.umn.edu/FPDIcybersecurity. For could lead to a bad consequence, The potential consequences of There is also another way to more information about the FPDI, the report noted. In addition, an attack on industry industrial leverage your company culture to visit foodprotection.umn.edu. there needs to be a threat that can control systems are just as signifi- exploit the vulnerability. cant, including massive financial These are the three factors of losses for companies and/or harmed the “Cyber Risk Equation,” which customers, the report said. is: Risk = Vulnerability x Conse- And food industry ICSs not quence x Threat. For a risk to exist, only have many of the same vul- all three factors must be greater nerabilities as other sectors, but than zero; that is, they must exist. many unique ones as well, the

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problems and design control mech- Center For Foodborne Illness Research, anisms is an important way to pre- Australia’s Heart Prevention Now Housed At Ohio State vent foodborne illnesses, especially Foundation Removes for children, the elderly, and indi- Columbus, OH—A new food The CFI will be housed within viduals with compromised immune Limits For Healthy safety center at Ohio State Uni- the CFAES department of food systems,” Kowalcyk commented. Consumers On Eating versity will provide a centralized science and technology (FST) at Kowalcyk co-founded CFI with location for food safety resources. Ohio State. her mother, Patricia Buck, a food Full-Fat Cheese, Milk The Center for Foodborne Ill- “It is a perfect fit for the work safety advocate and educator, to Canberra, Australia—Australia’s ness Research and Prevention the department does, considering focus on promoting science-based Heart Foundation has removed its (CFI) will bring its 13-year record FST’s strong history of impacting approaches to preventing food- restriction for healthy Australians of protecting public health to Ohio food safety challenges at the local, borne illnesses. on eating full-fat milk, cheese and State’s College of Food, Agricul- national, and international level,” The center was created to yogurt. tural, and Environmental Sciences said Sheryl Barringer, department facilitate, encourage and promote “While the evidence was mixed, (CFAES). chair. “I enthusiastically support research on food safety; translate this type of dairy was found to have Founded as a nonprofit orga- the establishment of the center in and communicate science and a neutral effect, in that it doesn’t nization in 2006, CFI’s mission CFAES.” its implications for food safety to increase or decrease your risks for is to advance a more scientific, CFI will provide a centralized stakeholders; and work on behalf heart disease or stroke,” said Prof. risk-based food safety system that location for food safety resources, of consumers to implement a stron- Garry Jennings, the Heart Foun- prevents foodborne illnesses and researchers, faculty, and staff from ger, more science-based food system dation’s chief medical advisor. protects public health by translat- several Ohio State colleges and that prevents foodborne diseases. “Given this, we believe there is ing science into policy and practice, departments, including the College “As knowledge brokers, CFI not enough evidence to support a according to Barbara Kowalcyk, an of Public Health, the John Glenn staff work to translate science into restriction on full-fat milk, yogurt assistant professor of food science College of Public Affairs, the Col- practical, evidence-informed poli- and cheese for a healthy person, as and technology at Ohio State and lege of Veterinary Medicine, and cies that protect public health and they also provide healthy nutrients an internationally recognized food the College of Education and prevent foodborne diseases,” Kow- like calcium.” safety expert. Human Ecology, Kowalcyk said. alcyk said. But Jennings cautioned that lim- “Access to affordable, safe and “In bringing CFI to Ohio State, The center also aims to inform its apply to the new dairy advice. nutritious food is increasingly criti- we hope to build a stronger network consumers’ food choices by rais- “For people who suffer high cho- cal in order to sustain the world’s of food safety experts who have ing awareness about the scope and lesterol or heart disease, we recom- growing population,” said Kowal- the resources and talent to address impact of foodborne illnesses; to mend unflavored reduced-fat milk, cyk, who co-founded CFI and is existing and emerging food safety shift the paradigm by promoting an yogurt and cheese and eating less the center’s director. “The estab- problems,” Kowalcyk said. “CFI will integrated, systems-based approach than seven eggs per week,” Jen- lishment of CFI at Ohio State will work to create lasting strategic part- to food safety, food security, and nings said. build on the university’s extensive, nerships with food safety stakehold- nutrition; and to build strategic “Butter, cream, ice cream and existing efforts to address this criti- ers and will develop new research partnerships in order to advance dairy-based desserts are not recom- cal challenge.” and funding opportunities.” these goals. mended as heart-healthy, as they CFI has earned a reputation as CFI is dedicated to improving CFI will hold its inaugural contain higher fat and sugar levels a leader in improving food safety food safety globally as well as locally event, “Translating science into and less protein,” Jennings added. policies and practices through and nationally. Last November, policy and practices: What are the “Evidence found the dairy fat in science-based approaches, Kow- Kowalcyk received a $3.4 mil- food safety priorities?”, on Thurs- milk, cheese and yogurt does not alcyk noted. Among its contribu- lion, four-year brant from the Bill day, Nov. 14, and has established raise bad LDL cholesterol levels tions: the center collaborated with & Melinda Gates Foundation and an endowment fund to help sustain as much as butter or other dairy other groups to develop, pass, and the UK Department for Interna- the center’s work long-term. products.” implement the Food Safety Mod- tional Development to improve Details of the Nov. 14 event will Julie Anne Mitchell, the Heart ernization Act (FSMA). The cen- food safety in Ethiopia, where ill- be released in the near future. Foundation’s director of preven- ter also joined multiple efforts to ness from unpasteurized milk and For information about the Cen- tion, said healthy eating advice strengthen government resources raw meat is commonplace. ter for Foodborne Illness Research should reflect new evidence. for national and state food safety “Building capacity for com- and Prevention, and the endow- “Over time, the Heart Founda- programs. munities to identify food safety ment fund, visit foodsafety.osu.edu. tion’s advice for heart-healthy eating has shifted with the evidence to downplay individual nutrients and look more closely at whole foods and patterns of eating. What matters now is the combination of healthy foods and how regularly people eat them,” Mitchell said. “The increase in availability and promotion of highly processed foods at the expense of healthy foods has meant that too many Australian adults get more than a third of their total daily energy from high-kilojoule, nutrient-poor junk foods like cakes, muffins, pastries, alcohol and soft drinks,” Mitchell continued. Sian Armstrong, Heart Founda- tion dietitian, said when it comes to eating, the big picture matters, and choosing a variety of healthy foods, regularly over time, is key. “Eating more plant-based foods like vegetables, fruits and whole grains, and healthy proteins like fish and seafood with smaller amounts of animal-based foods, while cutting down on highly processed junk foods is key to good For more information, visit www.sanchelimaint.com heart health,” Armstrong said. October 4, 2019 CHEESE REPORTER Page 25

World Dairy Expo’s Championship Dairy Product Contest Auction Raises $27,904

Madison—The 17th annual World Chocolate Shoppe Ice Cream Dairy Expo Championship Dairy French Vanilla and Chocolate Ice Product Contest auction, held Cream made by Chocolate Shoppe here, raised a total of $27,904.00. Ice Cream was bought by Gallo- The Cheese & Butter Grand way Company for $1,462.50 total. Champion, 11 pounds of Gouda made by the University of Wiscon- Saputo Cheese sin-Madison’s Babcock Hall Dairy, Galloway Company also bought was purchased by Nelson-Jameson a Gorgonzola, Fontinella Rubbed for $1,980.00 total. with Harrissa, and Lemon Goat The Grade A Champion, two Cheese with Blueberries made by pounds of Lowfat Cottage Cheese Saputo Cheese for $2,310.00 total. made by Prairie Farms Dairy of ALDI, Inc. Nelson-Jameson, Inc., purchased the Cheese and Butter Grand Champion, made by Babcock Carbondale, IL, was purchased by Emporium Selection Hatch, Pre- Hall Dairy, at the World Dairy Expo Championship Dairy Product Contest Auction. In the photo Ag Source for $850.00 total. ferred Borgonzola, Organic Whole above are, left to right: Brad Legreid, WDPA, which sponsors the contest; Gary Grossen, The Grand Champion Ice Babcock Hall Dairy; Reggie Way, Nelson-Jameson; and Trevor Wuethrich, Grassland Dairy Milk Plain Yogurt and Gelato made Products, WDPA’s president. Cream, four pounds of Sweet by ALDI, was bought by Denali Me Lemon Bar Ice Cream made Ingredients for $495.00 total. bell, NY, was purchased by T.C. Old Europe, Cabot Creamery, by Kemps of Cedarburg, WI, was Jacoby for $450.00 total. Byrne Dairy Combined Class purchased by Nelson-Jameson for Edelweiss, Mill Creek Triple Creme Brie by Old Europe $110.00 per pound, or $440.00. Combined Class Oberweis Dairy, siggi’s, Schnuck Cheese; Lowfat Sour Cream, Cabot “This year’s contest set a new Dairy Connection purchased 20 Markets Combined Class Creamery; and Original Cookie- record of 1,536 entries,” said Brad pounds of Brick made Edelweiss Chocolate Sea Salt Ice Cream, 4% wich by Byrne Dairy was bought by Legreid, executive director of the Cheese,and a Quesadilla by Mill Lactose Free Skyr and Honey Nut Cheese Market News for $260.00. Wisconsin Dairy Products Asso- Creek, for $1,450.00 total. Cream Cheese made by Oberweis ciation (WDPA), contest host. Dairy; siggi’s Dairy; and Schnuck Dean Foods, V&V Supremo Kemps A portion of the auction pro- Markets, was purchased by T.C. Combined Class ceeds will be used to fund the Dr. A Simply Crafted Salty Caramel Jacoby for $237.50 total. Jalapeno Mixins Cottage Cheese Robert L. Bradley Scholarship, Swirl and Twisted Dough Frozen by Dean Foods, and Chihuahua Wisconsin Dairy Products Associa- Yogurt made by Kemps was pur- Belfonte Ice Cream Lowfat Vanilla and a Blueberry Cheese with Jalapenos by V&V tion Scholarship and the MATC chased by Organic Valley/CROPP Supremo/Chula Vista Cheese, was Culinary Foundation Scholarship. Cooperative for $540.00 total. Yogurt made by Belfonte Ice Cream & Dairy Foods, was pur- bought by Ag Source for $170.00 WDPA will also use a portion Muller Pinehurst Dairy, Ice Cream total. of the proceeds to help sponsor chased by Dr. Bob Bradley for the Specialties Combined Class total of $202.50. the annual Collegiate Dairy Prod- Philly Vanilla Ice Cream made by Cedar Crest, Michigan Milk ucts Evaluation Contest. Auction Muller Pinehurst and Ice Cream AMPI Producers Combined Class results are as follows: made by Ice Cream Specialties, Cheddar, Colby/Monterey Jack Rainbow Sherbet and Unsalted Dairy Farmers of America was purchased by Grassland Dairy Blend and Bourbon Butter made Churn Butter by Cedar Crest Ice Mozzarella and Provolone made by Products for $520.00 total. by Associated Milk Producers, Inc. Cream, and Michigan Milk Pro- DFA, was purchased by Wiscon- (AMPI) was purchased by Kemps ducers Association, was purchased sin Aging & Grading Cheese for Lactalis USA, Webers Farm Store, for $5,640.00 total. by Denali Ingredients for $435.00 $540.00 total. Umpqua Dairy Combined Class total. Feta by Lactalis USA; Kefir by Lactalis American Group Prairie Farms Dairy Webers Farm Store; and Cot- Lowfat Ricotta and President Crescent Ridge Dairy Swiss and Cream Cheese made by tage Cheese and Butter Toffee by Unsalted Butter, and Galbani Mint Cookies & Cream and Coco- made by Prairie Farms Dairy; Jeff’s Umpqua Dairy, was bought by Chr. Fresh Mozzarella by Lactalis was nut Almond Bar made by Crescent Select Gouda and Ranch Dip by Hansen for $645.00 total. purchased by Kemps for $962.50 Ridge Dairy, was purchased by Prairie Farms was purchased by total. Tony Anderson for $180.00 total. Nelson-Jameson for $770.00 total. Marquez Brothers International Land O’Lakes Drinkable Pina Colada Yogurt and Aged Cheddar made by Land Strawberry Cereal Smoothie by O’Lakes, Kiel, WI, was purchased Marquez Brothers, was purchased by Nelson-Jameson for $1,300.00. by M3 Insurance for $400.00 total. Upstate Niagara Cooperative Southeastern Grocers Key Lime Greek Yogurt and French A Greek Yogurt and Devilishly Onion Dip made by Upstate Niag- Dark Chocolate Raspberry made ara Cooperative, was purchased by by Southeastern Grocers was pur- T.C. Jacoby for $495.00. chased by Organic Valley/CROPP Cooperative for $325.00 total. Lake Country Dairy Chr. Hansen bought 28 pounds Foremost Farms USA of Cello Mascarpone and Alpine Sharp Cheddar and Salted Butter Style Cheese made by Lake Coun- made by Foremost Farms USA was try Dairy for $1,120.00. purchased by Ecolab for $2,000.00. Pine River Pre-Pack Global Foods, Beyond Better Swiss & Almond Cold Pack Cheese Foods Combined Class made by Pine River Pre-Pack was Naturally Oven Smoked Process purchased by Cheese Market News Swiss and Mint Chip Swirl Bar by for $510.00 total. Global Foods International and Beyond Better Foods, was pur- Hiland Dairy Foods chased by Kelman Consulting for Vivolac Cultures bought Straw- $38.00 per pound, or $456.00 total. berry Yogurt, Sour Cream, a Dip and Ice Cream made by Hiland Upstate Farms Cheese Dairy Foods for $32.50 per pound, String Cheese and Ricottone made or $812.50 total. by Upstate Farms Cheese, Camp- Page 26 CHEESE REPORTER October 4, 2019

summary, include that electromag- comprising a heated auger. In one USPTO Awards Patent For Method For netic technology can reduce the embodiment, the auger is a solid Making A Pasta Filata Cheese costs of energy, labor and material, flight auger with a hollow tube sur- and that it offers the possibility to rounding the flight of the auger. In Washington—The US Patent and dients may be added before or change a batch process into a con- one embodiment, the flights are Trademark Office (USPTO) this after hearing the cheese curd with tinuous process; and that RF tech- solid and are not hollow. week awarded a patent relating to microwave energy. nology uses only electrical energy, In yet another embodiment, the a method for making a pasta filata In yet another embodiment, provides speed and uniformity, and continuous cooker stretcher com- cheese. the patent disclosure relates to provides selective heating. prises a chamber with a heated Inventors are Peter F. Nelles, a method of making pasta filata An advantage of the methods auger located therein and a heated Gary L. Nesheim and Grant L. cheese comprising heating and/ disclosed in the patent is that bet- jacket surrounding the chamber, Nesheim. The patent was assigned or cooking a dairy product con- ter solids retention and increased wherein the heat source for the to Tetra Laval Holdings & Finance tained within a first housing using product yield ranging from about auger and the heat source for the SA (the Tetra Laval Group consists an electromagnetic energy source 0.5 percent by weight to about 2 chamber are separate and distinct of three industry groups, including contained within a second hous- percent by weight as compared and operate independent of one Tetra Pak, Sidel and DeLaval). ing, wherein at least a portion to traditional methods of mak- another. In one embodiment, the In one embodiment, the method of the first housing is contained ing pasta filata will be achieved, heat to the auger is supplied by a disclosed in the patent comprises within the second housing. according to the patent summary. first heated fluid. heating a pasta filata-type cheese In one embodiment, the first Earlier, the USPTO awarded a The patent summary lists sev- curd using electromagnetic energy housing has a tubular structure. separate patent relating to meth- eral advantages of the methods contained within a tubular hous- In yet another embodiment, the ods and apparatuses of making a and systems disclosed in the pat- ing. In one embodiment, the second housing has a tubular struc- pasta filata cheese. Inventors are ent, including, but not limited to: electromagnetic energy source ture. In yet another embodiment, Peter F. Nelles, Gary L. Nesheim the methods and systems elimi- is microwave energy; in another the first and second housings are and Grant L. Nesheim. That pat- nate cook water, provide for a high embodiment, the electromagnetic separated by one or more addi- ent was also assigned to Tetra Laval capacity dry cooker, provide for energy source is Radio Frequency tional tubes. Holdings & Finance SA. non-batch continuous production, (RF) energy. Advantages of the methods, sys- In one embodiment, the disclo- and provide for reduced fat loss, To optimize the quality of the tems and apparatuses disclosed in sure relates to a continuous cooker increasing yield, and decreasing pasta filata cheese, various ingre- the patent, according to the patent stretcher comprising a chamber wastewater.

“Caloris had grown a lot in the “We transform process systems The company’s new website can Caloris Engineering past five years,” said Jim Peterson, design for the better with unex- be explored at https://caloris.com. Introduces New the company’s president and CEO. pected, future-focused solutions It features case studies, enhanced “Not just in terms of the size of that solve real operational prob- navigation and opportunities to Logo, Website the compay, but also in what the lems,” Peterson noted. “By offering stay in touch with Caloris. Easton, MD—Caloris Engineer- company can offer to our custom- A Better Process, we engi- ing, LLC, provider of evaporation, ers. Our new brand reflects our neer efficient, dependable membrane filtration and drying strengths better.” and productive solutions technologies for dairy, food, bev- The company’s new tag line, that also improve environ- erage, and industrial wastewater, “A Better Process,” encompasses mental sustainability where introduced a new company logo Caloris Engineering’s values of col- practical. Our solutions are this week and has also launched a legiality, sustainability, integrity, designed with the end user in mind For information, visit Caloris’ new website. responsiveness and reliability. to drive plant productivity.” website at www.caloris.com

Call 608-246-8430 or email: [email protected] to subscribe or for questions regarding the Cheese Reporter App October 4, 2019 CHEESE REPORTER Page 27

on lunchtime classics such as pizza young consumers, who enjoy food- Gen Z, Younger Millennials Want Upscale and grilled cheese. service venues that allow them to Classic Grilled Cheese, Protein On The Go Seventy-four percent of con- make their meal their own. sumers ages 15 to 18 responded Eighty-six percent of consum- Chicago—Food manufacturers and Seventy-six percent of consum- that they either “liked” or “loved” ers ages 18 to 34 state they would retailers looking to attract youth- ers ages 18 to 34 agree that they the Honey Sriracha Chicken Flat- be likely to order menu items that driven dollars should keep in mind shouldn’t have to try too hard to bread, a flatbread topped with they can customize, and 83 percent that this demographic is looking eat healthy, and 86 percent state Mozzarella cheese, diced chicken, say they are willing to wait for a for elevated, customizable fare that they expect healthy food to cherry tomatoes, fresh cilantro and customized sandwich rather than with extra protein – dairy-based or taste delicious too. a drizzle of honey Sriracha sauce. buy a packaged one. Young con- otherwise – being a high priority. Gen Z and younger Millennial Sixty-eight percent of kids ages sumers value their time, but when A new report from Y-Pulse consumers are willing to cast their 15 to 18 stated that they either a menu item is customizable, this recently identified five trends net far and wide to find menu items “liked” or “loved” the Grilled individualistic generation is will- attracting Gen Z and younger Mil- that check off all their boxes-and Cheese and Roasted Vegetable ing to wait. lennial consumers to convenience they’re willing to pay more too. Sandwich, a grilled cheese sand- The Human Element: Despite retail operations. The surveyed Sixty-six percent of consumers wich made with whole grain bread, their love of technology, young included over 5,000 consumers, ages 18 to 34 say they don’t mind stuffed with balsamic roasted veg- consumers recognize the benefits a along with opinions from culinary paying extra for a snack if it’s a etables and melted Cheddar. human element adds to their din- professionals. healthy option, the new report Young consumers also regard ing experiences. An overwhelming Protein on the Go: Squeezing Y-Pulse found. convenience operations as the per- 87 percent of consumers ages 18 to extra protein into their diets is a Elevated Grilled Cheese: fect grounds for expanding their 34 state that staff who are knowl- high priority for many of today’s Unique, high-quality fare that tastes. Sixty-three percent of con- edgeable about the food they are young consumers, according to the can’t be found anywhere else consumers ages 18 to 34 stated that serving is important. report. Sixty-six percent of continues to attract young consumers. they like to try new items when Fifty percent of consumers ages sumers ages 18 to 34 say that eating When asked to evaluate original purchasing food at convenience 18 to 34 admit that they will go a high-protein diet is important to menu concepts, young consumers stores. as far as skipping a purchase they them, and 82 percent say that they showed their love for items that Make It Their Own: A little were intending to make at the deli love meat. offered an exciting upscale twist customization goes a long way with if the employees look bored. Young consumers also value offerings that allow them to get a protein boost on the go. When presented with menu concepts for their evaluation, 66 percent of consumers ages 18 to 34 said they would be likely to try a high-protein snack box, featuring a serving of Cottage cheese, slices of smoked turkey jerky and unsalted toasted almonds. Kids Want It All: When it comes to dining decisions, young consumers are making choices without making sacrifices.

FSNS Opens New Food Testing Lab In Allentown, PA San Antonio, TX—Food Safety Net Services (FSNS) recently announced the opening of its latest analytical testing laboratory for the food and consumables industry Reduce Your Costs with Free Flow® Improve Yield, Appearance and Pro tability of in the northeastern region of the At two to three times your current application rate, Free Flow® Your Cheese Shreds United States. anti-caking agents can reduce your costs dramatically. The 22,000-square-foot facil- • Free Flow® anti-caking agents can be applied at higher ity is located in Allentown, PA, application rates to improve yield and pro tability. and will be adept to conduct all • A smart substitute for cellulose, Free Flow® can be applied microbiological tests, allergen Free Flow® looks better at over twice the rate and remain signi cantly less visible. detection, and wet chemistry for than cellulose at twice the food industry, FSNS said. The the application rate. • Low airborne dust ensures safer working conditions, less laboratory also contains a 50-seat 3% Cellulose equipment wear-and-tear and better package seal integrity. training room for FSNS education • Free Flow® delivers excellent owability for maximum line classes and customer use. Free Flow® is nearly speeds, while preventing clumping. invisible at 3%. “We are excited to be able to ® service our existing and new cus- • Free Flow can be customized to co-deliver antimycotics and 3% Free Flow® 1031 tomers in the Northeast US,” said oxygen scavenger systems to assure ongoing avor and freshness. John Bellinger, FSNS CEO. “We have an excellent, experienced For more information about Free Flow® and our complete line team managing our Allentown laboratory who will take customer of anti-caking solutions, contact us today. service in the region to a new level.” For more information, contact Tony Petrucci, at (614) 971-1396, [email protected]; or ©2018 Allied Blending LP 1-800-758-4080 • www.alliedblending.com All rights reserved. David Bosco, at (559) 443-2182, [email protected]. For more information, visit www.alliedblending.com PEOPLE

CPage 28 OMPANY NEWSCHEESE REPORTER October 4, 2019 We look at cheese differently.

www.cheesereporter.com/events.htm

SUPPLIER NEWS ...because we don’t just IDFA’s New Yogurt & Cultured Innovation see cheese, we see the Conference Is March 31-April 1 In Miami whole picture. 1.866.404.4545 www.devilletechnologies.com Miami, FL—The International tion enhancement of cultured Dairy Foods Association (IDFA) dairy products; and innovations in Cheese Reporter Ad.indd 1 2018-01-03 11:52 PM will host its inaugural Yogurt & processing and packaging. Registration Opens PLANNING GUIDE Cultured Innovation Conference Attendees will also hear about For GFSI Conference Oct. 8-10: NCCIA Annual Con- here March 31-April 1 at the the latest novel ingredients, cul- ference, Empire Events Cen- Miami Marriott Biscayne Bay. tures, flavoring and sweeteners for Feb. 25-28 In Seattle ter, Rochester, MN. For more It was created to highlight the dairy industry; and cost-saving Seattle, WA—Registration kicked details, visit www.northcentral- recent developments in the sci- ideas and sustainability improve- off for the 19th annual Global Food cheese.org. ence of dairy cultures, processing ments for processing, packaging Safety Initiative (GFSI) Confer- • and packaging technologies, as and distribution. ence here Feb. 25-28, 2020. Oct. 8-11: Process Expo, well as look at new products enter- The new conference will also be The conference is for everyone McCormick Place, Chicago, ing the market. held in conjunction with IDFA’s involved in advancing food safety IL. For more information, visit Professionals across the yogurt Ice Cream Technology Conference worldwide and regularly convenes www.myprocessexpo.com. and cultured dairy products field March 31 - April 1. A joint recep- over 1,000 experts and innovators • are encouraged to attend, includ- tion and additional networking from 60 countries. Nov. 4-6: NMPF, NDB, UDIA ing executives, marketers, plant opportunities over the course of This year’s theme is “One Con- Joint Annual Meeting, Hyatt operators, researchers and quality the conferences have been sched- nected World. One Safe Food Sup- Regency Hotel New Orleans, assurance staff. uled. ply,” and early registration will run New Orleans, LA. Visit www. Speakers will cover consumer Registration and more informa- through Nov. 30, 2019. For com- nmpf.org for more details. trends, retail sales and product tion will soon be available online plete event details or to register • marketing data; quality and nutri- at ww.idfa.org. online, visit www.mygfsi.com. Nov. 5-7: Global Cheese Tech- nology Forum, Peppermill Resort, Reno, NV. Visit www. Peter Dixon To Lead Artisan Cheese Classes design; regulations; sanitation and adpi.org/GlobalCheeseTech- food safety, business planning, and nologyForum for more infor- In Oregon & Vermont; Plans For NY, PA, CO marketing. No prior experience mation. necessary. • Westminster West, VT—Cheese cial cheese businesses, and want to Topics include the milk prop- Nov. 5-8: Dairy Practices Coun- maker and consultant Peter Dixon expand product lines, experiment erties of sheep, cows and goats; cil 50th Annual Conference, Hol- of Westminster Artisan Cheese with new cultures and recipes, and seasonal milk production; coagu- iday Inn by the Bay, Portland, will serve as lead instructor for sev- improve quality. lation mechanisms; use of starter ME. Visit www.dairypc.org for eral practical artisan cheesemaking The focus is on making, aging, and ripening cultures, including complete event details. classes through the end of 2019. and controlling quality, and the autochthonous aicrobes; brining • Dixon will also travel to Briar session will revolve around hands- and surface salting; sanitation and Rose Creamery in Dundee, OR, on cheesemaking and class discus- cheese-specific affinage. Nov. 17-19: PLMA Private Label and is planning future workshops sion. The course will cover equip- Trade Show, McCormick Place, in Pennsylvania, New York and Advanced sessions elaborate on ment and facilities for small-scale Chicago, IL. For more informa- Colorado. information presented in the intro- commercial cheesemaking; federal tion, visit www.plma.com. The course lineup kicks off Nov. ductory series, and accommodate and state regulations; development • 6-8 at Westminster West with a the experience levels of the par- of food safety programs; and cream- Jan. 19-21: Winter Fancy Food three-day class on the techniques, ticipants. ery and aging space design. Show, Moscone Center, San microbes and facilities associated Highlighted cheese varieties A final session on business plan- Francisco, CA. For details, visit with affinage. This combination include Blues, Bloomy and Washed ning covers the financial aspects of www.specialtyfood.com. of classroom instruction and dis- Rind, Tomme, Alpine and Grana. cheesemaking, as well marketing • cussion will include trips to local Students will learn about rec- and hiring/retaining quality per- Jan. 26-29: Dairy Forum 2020, aging spaces for a tour of the facili- ipe development; starter and rip- sonnel. The Westin Kierland Resort & ties and discussion of affinage in ening cultures, including native At Dixon’s Parish Hill Creamery, Spa, Scottsdale, AZ. Details and practice. microbes; specific aging tech- students will also get the opportu- registration information avail- Dixon will cover selection and niques; equipment and facilities; nity to make Mozzarella, Ricotta able at www.idfa.org. use of ripening cultures; bio-reac- cheese grading and quality control; or Ricottone, Tomme, Gouda, • tions between microbes, enzymes, and food safety and requirements Appenzeller, and Asiago. Cost to March 3-5: World Champion- and cheese components; affinage of the Food Safety Modernization attend is $1,200 per student. ship Cheese Contest, Monona techniques; cheese grading and Act. In the new year, Dixon will Terrace Convention Center, quality control; facility design and Cost to attend is $1,200 per per- travel to Briar Rose Creamery in Madison, WI. Visit www.world- construction; and maintenance of son. Dundee, OR, for a workshop enti- championcheese.org. cellars, caves, and brining/drying Dixon’s Fundamentals of Chee- tled “Rooting Out Defects at the • rooms. semaking course will be held Dec. Vat.” The course has been sched- March 17-19: 22nd Dairy Ingre- Students are encouraged to 3-9 at Westminster West with lim- uled for March 18-20. dients Symposium, Santa Bar- bring in their own cheeses for ited availability. Future artisan cheesemaking bara Hilton Beachfront Resort, evaluation. The early registration The six-day intensive work- workshops are being planned in Santa Barabara, CA. Visit www. fee is $600. shop designed for anyone looking Pennsylvania, New York and Colo- adpi.org for more details. Dixon’s Advanced Cheesemak- to develop or improve on a small- rado. For more details on upcoming • ing course will also take place scale cheese business. classes, visit www.parishhillcream- April 14-16: Cheese Expo, Wis- at Westminster West from Nov. This session includes hands-on ery.com. consin Center, Milwaukee, WI. 10-16. It’s designed for cheese cheesemaking as well as lecture For specific inquiries, contact For details, visit www.cheesemakers who own or work for and discussion about cheese aging; Peter Dixon via email: westminster- expo.org. small-scale, licensed and commer- facilities, equipment, and creamery [email protected]. October 4, 2019 CHEESE REPORTER Page 29

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

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k v Since 1876

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

Classified Advertisements should be placed 4. Walls & Ceiling by Thursday for the Friday issue. Classified ads 10. Cheese & Dairy Products charged at $0.75 per word. Display Classified EXTRUTECH PLASTICS Sanitary KEYS MANUFACTURING: Dehydrators advertisements charged at per column inch POLY BOARD© panels provide bright of scrap cheese for the animal feed rate. For more information, call 608-316-3792 white, non-porous, easily cleanable industry. Contact us for your scrap at or email [email protected] surfaces, perfect for non-food contact (217) 465-4001 or email keysmfg@aol. applications. CFIA and USDA accepted com. and Class A for smoke and flame. Call 1. Equipment for Sale 1. Equipment for Sale EPI Plastics at 888-818-0118 or www. 12. Warehousing AUCTION: COMPLETE PLANT WESTFALIA SEPARATORS: New epiplastics.com for information. FREEZER SPACE available at our LIQUIDATION: Milk processing arrivals! Great condition. Model num- warehouse facilities in Wisconsin and equipment, cheese inventory, 100- bers 120, 130, 170 and 200. All water 5. Real Estate Utah. We have expanded and have 40 lb. boxes, Cheddar, Parmesan, savers. Call GREAT LAKES SEPA- freezer and cooler space available. DAIRY PLANTS FOR SALE: Gruyere. Complete liquidation. King’s RATORS at (920) 863-3306 or e-mail Please contact Bob at MARTIN http://dairyassets.webs.com/acqui- Kreamery, 2195B Old Philadelphia [email protected]. WAREHOUSING at 608-435-2029 or sitions-mergers-other. Contact Jim Pike, Lancaster PA 17602. Auction email at [email protected]. SEPARATOR NEEDS - Before you buy at 608-835-7705; or by email at jim- will be held at: PA Auction Center, a separator, give Great Lakes a call. [email protected] (717) 687-7018,Tuesday, October TOP QUALITY, reconditioned machines 15, 2019. 9:00 am. Online bidding Manways & at the lowest prices. Call Dave Lam- available. www.paauctioncenter.com 6. Promotion & Placement Inspection Ports bert, Great Lakes Separators at (920) PROMOTE YOURSELF - By contact- EQUIPMENT FOR SALE: Cryovac 863-3306; [email protected] for ing Tom Sloan & Associates. Job Rotary Chamber Vac Model 8610-14. 4 more information. chambers with 14” dual seal wire set- enhancement thru results oriented pro- FOR SALE: Car load of 300-400-500 up. Chamber product size is 12”x14” fessionals. We place cheese makers, late model open top milk tanks. Like or 6”x18”. Machine is 460 volt 3 phase. production, technical, maintenance, engi- new. (262) 473-3530 Completely refurbished. Call 608-437- neering and sales management people. 5598 x 2344 or email: akosharek@ 2. Equipment Wanted Contact Dairy Specialist David Sloan, dairyfoodusa.com Tom Sloan or Terri Sherman. TOM WANTED TO BUY: Westfalia or Alfa- SLOAN & ASSOCIATES, INC., PO Box FOR SALE: Used complete Johnson Laval separators. Large or small. Old or 50, Watertown, WI 53094. Phone: (920) Shred line with Ishida scale and Hays- Sanitary, Heavy-Duty new. Top dollar paid. Call Great Lakes 261-8890 or FAX: (920) 261-6357; or by sen bagger. Please call for details. Separators at (920) 863-3306 or email Prevents CIP Solution, email: [email protected]. 724-475-4015. [email protected] Air and Powder Leakage Evaporator Dryer Technologies, Inc. FOR SALE: 1500 and 1250 cream 7. Help Wanted www.evapdryertech.com tanks. Like New. (800) 558-0112. (262) 3. Products, Services 473-3530. FOR SALE: Unique Corrugated Cow FOR SALE: 1500 and 1250 cream Print Gift Boxes for the Holidays Western Repack tanks. Like New. (800) 558-0112. (262) or year-round Regular Cow Print. 473-3530. ALFA-LAVAL SEPARATOR: Various sizes available from Dairyland We Purchase Fines and Downgraded Cheese Model MRPX 518 HGV hermetic sepa- Packaging. Please e-mail: sandy@ rator. Can be set up for warm or cold. dairylandpackaging.com or call (608) Reclamation Services Call GREAT LAKES SEPARATORS at 798-2247. Check out our website: • Cheese Salvage/Repacking (920) 863-3306 or e-mail drlambert@ dairylandpackaging.com. We are dialez.net. your source for all packaging needs. • 640# Block Cutting

Handling cheese both as a service and on purchase. Bring us your special projects Western Repack, LLC (801) 388-4861

COMECOME TOTO THETHE EXPERTSEXPERTS WHENWHEN YOU'REYOU'RE TALKINGTALKING SEPARATORSSEPARATORS && CLARIFIERSCLARIFIERS 80 Years of Combined Now Hiring Experience and Honesty WE MAKE DAIRY Communications Coordinator in the Sale of: Innovative. Valley Queen is seeking an experienced • Separators, Clari ers & Centrifuges We’ve come a long way since our start Communications Coordinator to join our team. • Surplus Westfalia & Alfa Laval Parts This is a unique opportunity to shape the in 1929 as a cheese manufacturer in future success of our business by managing • Unbeatable Pricing the U.S. Our success means doing our external and internal communications • 24/7 Trouble Shooting business in a way that’s good for programs. Duties include: our employees, our dairies and our • Developing and executing strategic community. Grow your career with Call Dave Lambert at (920) 863-3306 corporate communication plans and us. Our comprehensive bene t plan activities. or Dick Lambert at (920) 825-7468 includes: health, dental, vision, 401(k), • Writing newsletters, press releases, social pro t sharing and much more. GREATGREAT LAKESLAKES SEPARATORS,SEPARATORS, INC.INC. media posts and company website. GREAT LAKES SEPARATORS, INC. www.vqcheese.com - (605) 432-9629 • Coordinating special events and projects. P: (920) 863-3306 • F: (920) 863-6485 ©2019 Valley Queen Cheese Factory, Inc. E: [email protected] Page 30 CHEESE REPORTER October 4, 2019

Class Milk & Component Prices DAIRY FUTURES PRICES SETTLING PRICE *Cash Settled September 2019 with comparisons to September 2018 Date Month Class III* Class IV* Dry Whey* NDM* Butter* Cheese* Class III - Cheese Milk Price 2018 2019 9-27 September 19 18.28 16.38 36.825 105.300 225.100 1.9040 9-30 September 19 18.28 16.38 36.825 105.300 225.100 1.9040 PRICE (per hundredweight) $16.09 $18.31 10-1 September 19 18.28 16.45 36.825 105.300 224.800 1.9030 SKIM PRICE (per hundredweight) $7.45 $9.91 10-2 September 19 18.31 16.35 36.980 105.190 223.400 1.9050 10-3 September 19 — — — — — — Class II - Soft Dairy Products 2018 2019 9-27 October 19 18.15 16.42 35.900 109.100 218.825 1.8980 PRICE (per hundredweight) $15.13 $16.93 9-30 October 19 18.13 16.45 36.150 109.150 218.700 1.8950 BUTTERFAT PRICE (per pound) $2.5512 $2.5052 10-1 October 19 18.28 16.45 36.125 109.225 218.300 1.9100 10-2 October 19 18.36 16.45 36.000 109.225 218.975 1.9190 SKIM MILK PRICE (per hundredweight) $6.43 $8.46 10-3 October 19 18.48 16.45 36.000 108.750 219.675 1.9280 Class IV - Butter, MP 2018 2019 9-27 November 19 18.14 16.68 35.700 111.700 218.525 1.8970 PRICE (per hundredweight) $14.81 $16.35 9-30 November 19 18.08 16.70 35.800 112.175 218.000 1.8940 10-1 November 19 18.24 16.76 35.675 113.275 218.075 1.9080 SKIM MILK PRICE (per hundredweight) $6.12 $7.88 10-2 November 19 18.32 16.78 35.750 113.700 217.975 1.9170 BUTTERFAT PRICE (per pound) $2.5442 $2.4982 10-3 November 19 18.37 16.78 35.750 113.000 217.825 1.9220 NONFAT SOLIDS PRICE (per pound) $0.6801 $0.8753 9-27 December 19 17.47 16.70 35.850 113.000 216.700 1.8300 9-30 December 19 17.45 16.76 35.850 113.500 217.000 1.8320 PROTEIN PRICE (per pound) $2.0029 $2.8633 10-1 December 19 17.53 16.80 35.725 114.600 216.775 1.8380 OTHER SOLIDS PRICE (per pound) $0.2098 $0.1758 10-2 December 19 17.58 16.84 36.000 114.850 216.500 1.8420 10-3 December 19 17.63 16.84 36.000 114.500 217.250 1.8440 SOMATIC CELL Adjust. rate (per 1,000 scc) $0.00083 $0.00095 9-27 January 20 16.78 16.84 36.000 114.125 217.300 1.7590 AMS Survey Product Price Averages 2018 2019 9-30 January 20 16.81 16.85 36.000 114.700 217.950 1.7630 Cheese $1.9053 10-1 January 20 16.85 16.93 35.975 115.700 217.650 1.7630 10-2 January 20 16.95 16.94 36.000 115.700 216.725 1.7740 Cheese, US 40-pound blocks $1.6533 $1.9843 10-3 January 20 17.02 16.94 36.200 115.400 218.375 1.7770 Cheese, US 500-pound barrels $1.7913 9-27 February 20 16.44 17.00 36.100 114.900 220.000 1.7300 Butter, CME $2.2754 $2.2344 9-30 February 20 16.50 17.00 36.100 114.900 219.550 1.7300 Nonfat Dry Milk $0.6533 $1.0519 10-1 February 20 16.57 17.14 36.100 116.800 219.200 1.7330 10-2 February 20 16.65 17.08 36.100 117.000 218.500 1.7380 Dry Whey $0.4028 $0.3698 10-3 February 20 16.70 17.08 36.100 116.750 219.200 1.7430 9-27 March 20 16.49 17.15 35.625 116.250 222.250 1.7280 9-30 March 20 16.54 17.15 35.625 116.275 221.625 1.7300 10-1 March 20 16.63 17.25 35.625 117.400 221.500 1.7330 September Class III Milk Price 10-2 March 20 16.66 17.29 35.625 117.600 221.200 1.7410 Since 2001 10-3 March 20 16.67 17.29 36.000 117.250 221.200 1.7410 $25.00 9-27 April 20 16.69 17.34 36.275 116.600 224.750 1.7450 9-30 April 20 16.70 17.34 36.225 117.375 224.025 1.7480 $23.00 10-1 April 20 16.78 17.39 36.225 117.925 223.650 1.7500 $21.00 10-2 April 20 16.81 17.38 36.225 118.500 223.200 1.7540 10-3 April 20 16.82 17.38 36.275 118.125 223.200 1.7540 $19.00 9-27 May 20 16.80 17.42 36.250 117.150 226.100 1.7580 $17.00 9-30 May 20 16.81 17.42 36.250 117.900 225.025 1.7580 10-1 May 20 16.86 17.50 36.250 117.900 225.025 1.7590 $15.00 10-2 May 20 16.90 17.52 36.250 119.000 225.025 1.7660 10-3 May 20 16.92 17.52 36.350 118.950 225.200 1.7650 $13.00 9-27 June 20 16.90 17.54 35.750 118.875 228.800 1.7730 $11.00 9-30 June 20 16.92 17.54 35.750 118.250 226.950 1.7730 10-1 June 20 17.01 17.59 36.025 118.725 227.025 1.7760 $9.00 10-2 June 20 17.05 17.60 36.025 119.500 227.025 1.7830 2001 2005 2009 2013 2018 10-3 June 20 17.05 17.60 36.500 119.500 227.150 1.7800 9-27 July 20 17.05 17.69 36.825 118.750 229.750 1.7850 $2.15 DAIRY PRODUCT SALES $2.10 9-30 July 20 17.07 17.69 36.825 118.750 228.025 1.7850 $2.05 10-1 July 20 17.18 17.74 36.825 118.750 228.100 1.7930 $2.00 40-Pound October 2, 2019—AMS’ National Dairy 10-2 July 20 17.19 17.74 36.825 120.000 228.100 1.7980 $1.95 Block Avg Products Sales Report. Prices included $1.90 10-3 July 20 17.19 17.74 36.825 120.000 228.100 1.7970 are provided each week by manufacturers. $1.85 $1.80 Interest - Oct. 3 19,616 7,189 2,031 7,418 7,040 17,347 Prices collected are for the (wholesale) $1.75 point of sale for natural, unaged Cheddar; $1.70 boxes of butter meeting USDA standards; $1.65 $1.60 Extra Grade edible dry whey; and Extra $1.55 Grade and USPH Grade A nonfortified $1.50 CHEESE REPORTER SUBSCRIBER SERVICE CARD $1.45 NFDM. •Revised $1.40 CME vs AM S PLEASE SEND ME MORE INFORMATION ON: $1.35 S O N D J F M A M J J A S Sept. 28 Sept. 21 Sept. 14 Sept. 7 ___Advertising ___Subscribing _____Subscripion Change ___Other______40-Pound Block Cheddar Cheese Prices and Sales If changing subscription, please include your old and new address below Weighted Price Dollars/Pound Name ______US 2.0887 1.9984• 1.9387 1.9167 Sales Volume Pounds Title ______US 11,377,061 11,309,476• 12,202,813 11,721,073 Company ______500-Pound Barrel Cheddar Cheese Prices, Sales & Moisture Contest Address ______Weighted Price Dollars/Pound US 1.9605 2.9204 1.8480 1.8233• City/St/Zip ______

Adjusted to 38% Moisture New Subscriber Info E-Mail Phone ______US 1.8624 1.8246 1.7530 1.7332 Sales Volume Pounds Name ______US 9,628,868 11,840,491 11,099,106 11,251,362• Weighted Moisture Content Percent Title ______US 34.73 34.74 34.64 34.78 Company ______Butter Address ______Weighted Price Dollars/Pound US 2.1819 2.2643• 2.2750 2.2765• City/St/Zip ______Sales Volume Pounds Old Subscriber Info US 4,055,524 2,010,130• 2,261,765 1,439,049• E-Mail Phone ______Dry Whey Prices TYPE OF BUSINESS: JOB FUNCTION: Weighted Price Dollars/Pounds ___Cheese Manufacturer ___Company Management US 0.3729 0.3684• 0.3700 0.3673 ___Cheese Processor ___Plant Management Sales Volume ___Cheese Packager ___Plant Personnel US 6,709,929 5,899,140• 5,302,449 5,342,118 ___Cheese Marketer(broker, distributor, retailer ___Laboratory (QC, R&D, Tech) ___Other processor (butter, cultured products) ___Packaging Nonfat Dry Milk ___Whey processor ___Purchasing Average Price Dollars/Pound ___Food processing/Foodservice ___Warehouse/Distribution US 1.0568 1.0514• 1.0467• 1.0494 ___Supplier to dairy processor ___Sales/Marketing Sales Volume Pounds US 22,701,160 20,986,009• 18,955,946• 15,107,503• Circle, copy and FAX to (608) 246-8431 for prompt response

October 4, 2019 CHEESE REPORTER Page 31

DAIRY PRODUCT MARKETS NATIONAL - CONENTIONAL DAIRY PRODUCTS AS REPORTED BY THE US DEPARTMENT OF AGRICULTURE Pumpkin spice ice cream, anyone? Apparently, retail grocery marketers think so. Ice cream remains the most advertised dairy item during the first week of October. Total numbers for conventional ads increased 15 percent, while organic ads decreased, on the whole, by 39 percent. WHOLESALE CHEESE MARKETS Total ad numbers for conventional cheese increased 31 percent and increased 71 percent NATIONAL - SEPT. 27: Cheese production is generally active in the entire country. for organic. The average price for conventional 8-ounce shred cheese is $2.24, while organic Midwestern milk supplies are tighter, ranging from $.25 to $1.75 over Class. Even still, many 8-ounce shred cheese averaged $3.79, representing an organic premium of $1.55. producers suggest production there is steady, and more are using condensed skim/nonfat dry milk for fortification. Cheese supplies are balanced to heavy, while demand reports range. Pizza The total number of ads for conventional yogurt increased 53 percent, while ads for organic cheese orders are still healthy, while some cheese makers suggest recent market highs, and decreased 47 percent. The average advertised price for conventional Greek yogurt in 32-ounce current downward pricing directions, are keeping buyers on the sidelines. For block makers, containers is $4.17, while for organic is $4.31, for an organic premium of $.14. current market conditions are concerning. The national average advertised price for conventional milk half-gallons is $2.35, compared to NORTHEAST- OCT. 2: Cheese production in the Northeast region is active. Milk is $3.48 for organic milk half-gallons. The organic price premium for milk half-gallons is $1.13. The available for manufacturers’ Class III production needs. Mozzarella and Provolone cheese total number of ads for conventional milk increased by 96 percent, but decreased 43 percent orders are fairly moderate from pizzerias. Cheese supplies are balanced to growing in the for the total number of ads for organic milk. Northeast. Spot prices are fluctuating on various market exchanges. On the CME Group, spot block and barrel cheese prices are finding their footing. In addition, buyers purchased at currently higher prices this week compared to last week. However, the market conditions RETAIL PRICES - CONVENTIONAL DAIRY - OCTOBER 4 are a bit weaker at this time. Commodity US NE SE MID SC SW NW

Wholesale prices, delivered, dollars per/lb: Butter 1# 3.94 3.86 3.92 3.32 3.64 4.10 4.29 Cheddar 40-lb blocks: $2.4225 - $2.7100 Process 5-lb sliced: $1.7775 - $2.2575 Muenster: $2.4100 - $2.7600 Swiss Cuts 10-14 lbs: $3.2650 - $3.5875 Cheese 8 oz block 2.27 2.05 2.51 2.13 2.15 1.92 2.45 Cheese 1# block 3.42 3.39 NA 3.50 NA NA NA Cheese makers suggest milk offers are few and far MIDWEST AREA - OCT. 2: Cheese 2# block 6.02 5.99 NA 6.88 5.63 6.04 6.80 between. That said, some regional cheese plant managers found some good deals on spot milk. Spot milk prices ranged from Class to $1.50 over Class. Cheese demand reports are Cheese 8 oz shred 2.24 2.20 2.32 1.92 2.40 2.00 2.53 more positive this week. Some expect cheese demand to remain strong throughout the rest Cheese 1# shred 4.90 3.99 4.99 NA NA NA NA of the year and into early 2020. Cheese production is slower due to scanter milk supplies. Cottage Cheese 2.12 2.17 2.05 2.40 1.99 NA 1.76 Cheese makers relay if they had more milk at lower prices, they would add days to their current schedules. Cheese market tones remain resilient. Although some contacts expected Cream Cheese 1.76 2.10 1.92 .99 1.36 NA 2.00 markets to continue their slide, CME barrel prices have begun to rebound and move in the Flavored Milk ½ gallon NA NA NA 4.99 NA NA NA direction of block prices, which saw the $2 mark mid-week. Flavored Milk gallon NA NA NA NA NA NA 1.99 Ice Cream 48-64 oz 3.18 2.90 3.12 2.77 4.34 3.24 2.70 Wholesale prices delivered, dollars per/lb: Brick 5# Loaf: $2.3375 - $2.7625 Cheddar 40# Block: $2.0600 - $2.4600 Milk ½ gallon 2.35 NA NA 2.19 1.89 NA 2.69 Monterey Jack 10#: $2.3125 - $2.5175 Mozzarella 5-6#: $2.1375 - $3.0825 Milk gallon 3.47 3.49 3.99 2.23 3.49 1.99 1.99 Muenster 5# $2.3375 - $2.7625 Process 5# Loaf: $1.7075 - $2.0675 Grade A Swiss 6-9#: $2.7800 - $2.8975 Blue 5# Loaf: $2.6050 - $3.6750 Sour Cream 16 oz 1.83 1.93 1.71 1.89 2.00 1.99 1.62 Yogurt (Greek) 4-6 oz 1.07 1.02 1.09 .96 1.18 1.00 1.00 WEST - OCT. 2: Cheese market conditions were mostly bearish last week. However, this Yogurt (Greek) 32 oz 4.17 4.56 NA 3.49 NA NA 3.89 week it is hard to tell where the market is going to end up at. So far, on the CME, prices have somewhat rebounded from last week’s lows. There is not much cheese demand in Yogurt 4-6 oz .50 .53 .50 .51 .50 .47 .39 the spot market. While some contacts report that current price trends are taking US cheese Yogurt 32 oz 3.00 NA 2.49 NA NA 2.99 2.69 out of the loop when it comes to international sales, others suggest that export demand has US: National Northeast (NE): CT, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VT; improved. Block cheese inventories are reported as well-adjusted, whereas barrel cheese supplies are substantial. The heavy supplies of Mozzarella are clearing through the pizza Southeast (SE): AL, FL, GA, MD, NC, SC, TN, VA, WV; Midwest (MID): IA, IL, IN, market. Cheese output is ongoing as milk moves steadily to the vats. KY, MI, MN, ND, NE, OH, SD, WI; South Central (SC): AK, CO, KS, LA, MO, NM, OK, TX; Southwest (SW): AZ, CA, NV, UT; Northwest (NW): ID, MT, OR, WA, WY Wholesale prices delivered, dollars per/lb: Cheddar 10# Cuts: $2.2975 - $2.4975 Cheddar 40# Block: $2.2975 - $2.4975 Monterey Jack 10#: $2.2850 - $2.5600 Process 5# Loaf: $1.7250 - $1.9800 Swiss 6-9# Cuts: $2.8625 - $3.2925 ORGANIC DAIRY - RETAIL OVERVIEW

FOREIGN -TYPE CHEESE - OCT. 2: Market conditions have remained balanced from National Weighted Retail Avg Price: Greek Yogurt 4-6 oz: $1.37 Cheese 8 oz shred: $3.79 Greek Yogurt 32 oz: $4.31 August through the end of September. Demand for cheese is good within the EU. After being Cheese 1 lb block: $5.99 Milk ½ gallon: $3.48 a bit up in the first seven months of this year, exports to other countries have significantly Cream Cheese 8 oz: $3.19 Milk gallon: $5.70 increased compared to the previous year in the same period. The biggest importers of EU Yogurt 4-6 oz: $0.69 Ice Cream 48-64 oz: $5.99 cheese during the first seven months of the year were Japan and Russia, with respective Yogurt 32 oz: NA Cream Cheese 8 oz: $3.19 increases in intakes of 8% and 10%. The prices for sliced cheese and cheddar are almost unchanged from the previous week. However, with lower stocks of cheese to fulfill current spot market requests, the expectation is that prices will go up moving forward. DRY DAIRY PRODUCTS - OCTOBER 3 cation. Another aspect pushing NDM prices Selling prices, delivered, dollars per/lb: Imported Domestic NDM - CENTRAL: Low/medium heat upward is that several NDM manufacturers Blue: $2.6400 - 5.2300 $2.4825 - 3.9700 NDM spot trading activity during week 40 was among the busiest trading weeks are prioritizing the completion of Q4 con- Gorgonzola: $3.6900 - 5.7400 $2.9900 - 3.7075 in 2019. Prices also experienced one of tractual agreements instead of selling in Parmesan (Italy): 0 $3.8700 - 5.9600 their most dramatic shifts in a single week the cash market. Romano (Cows Milk): 0 $3.6725 - 5.8275 as well, as each of the six price points of Sardo Romano (Argentine): $2.8500 - 4.7800 0 low, medium and high heat NDM shifted NDM - EAST: Low/medium heat NDM Reggianito (Argentine): $3.2900 - 4.7800 0 higher. CME markets broke the $1.10-mark mostly prices are higher on all sides of Jarlsberg (Brand): $2.9500 - 6.4500 0 last week and are continuing into the mid- the range and mostly prices series in the Swiss Cuts Switzerland: 0 $3.3025 - 3.6250 $1.10s this week. Contacts offer varying region. Buyers are purchasing spot loads at Swiss Cuts Finnish: $2.6700- 2.9300 0 reasons for the bullish nature of the current heightened prices currently. Low/medium market. Cheese makers, who have regu- heat NDM production is stable to slower, as larly reported tighter milk availability of late, some operations are not at capacity due to WHOLESALE BUTTER MARKETS - OCTOBER 2 are using more condensed skim/NDM to milk clearing to Class I and other Classes’ fortify. production needs. Manufacturers have WEST: Western butter contacts seem to expect cream to remain at current availability firmed up low/med heat NDM offer prices for long. Regarding butter supplies, contacts suggest that the butter market has a down- Western spot prices for on the spot market. The market undertone suggest fall stores are likely to begin being NDM - WEST: side feel to it. Even now, when market activ- low/medium heat NDM adjusted consid- has strengthened. High heat NDM prices chipped away at within a week, but this varies ity is usually at its annual peak, demand is erably higher, compared to the previous shifted higher on the top of the price range. by plant. They suggest Cream cheese pro- less than hoped for. Some manufacturers week. NDM values in the futures market Some operations have scheduled drying duction is expected to dip into the cream pool, imply demand could be better. Buyers have for Q4 and Q1 are also in bullish uptrend, time for some buyers’ spot load requests. even though Cream cheese/Class III produc- filled some of their required purchases, but which can be perceived as an optimistic tion is slower than it typically is in early fall. can wait for deals to finish off their Q4 but- sign within the market. As described by LACTOSE: Lactose prices moved lower ter needs. Bulk spot load prices slipped as Butter markets are steady, edging on bear- several market participants, some possible at the top of both the range and mostly price processors try to entice shoppers. A few ish. Some contacts foresee continued mar- factors contributed to the sudden increase series as quarter 3 contracts give way to industry contacts report getting unsolicited ket price drops. Recent storage and market in NDM cash prices. One of these factors quarter 4 contracts. Inventories are mixed. offers from butter makers for spot loads of reports, however, did not dampen the market is the current strong demand for protein Some manufacturers report their lactose butter and cream, something unusual for this tone as much as some contacts expected components within the dairy industry, supplies are mostly committed, while others time of year. Cream is readily available and them to and prices have been steady. especially from Class III for cheese fortifi- have growing inventories. butter inventories, while being drawn down seasonally, are larger than preferred. Manu- NORTHEAST: For some manufacturers, facturers hope activity will improve soon so in-house cream supplies are adequate for WEEKLY COLD STORAGE HOLDINGS hat the year might on a positive note. upholding contracted butter commitments. As a result, a few butter makers spurned SELECTED STORAGE CENTERS IN 1,000 POUNDS - INCLUDING GOVERNMENT Although cream remains surplus cream offerings this week, strength- CENTRAL: DATE ...... BUTTER CHEESE available and in a comfortable price range for ening a report that manufacturers are mostly butter plant managers, some suggest inven- comfortable with their butter inventory. East- 09/30/19 ...... 38,371 82,635 tories are in balance, and fall inventories ern cream multiples range in the mid to 09/01/19 ...... 39,457 81,770 will meet the increase in ordering expected upper 1.20s. Buyers in the spot market are Change ...... -1,086 865 near term. Butter contacts suggest they don’t modestly satisfying their butter needs. Percent Change...... -3 1 Page 32 CHEESE REPORTER October 4, 2019

recent months. Some 48 percent CME CASH PRICES - SEPT. 30 - OCT. 4, 2019 Restaurant of operators reported a same-store Visit www.cheesereporter.com for daily prices Performance Index sales increase between August 500-LB 40-LB AA GRADE A DRY 2018 and August 2019, down from CHEDDAR CHEDDAR BUTTER NFDM WHEY Rose 0.3% In August; 52 percent who reported higher MONDAY $1.6900 $1.9575 $2.1275 $1.1100 $0.3500 sales in July. September 30 (+3½) (+¼) (-2) (NC) (+¼) Customer Traffic For the first time in four months, TUESDAY $1.7325 $1.9900 $2.1275 $1.1300 $0.3475 October 1 (+4¼) (+3¼) (NC) (+2) (-¼) Levels Decline restaurant operators reported a net WEDNESDAY $1.7600 $2.0000 $2.1725 $1.1400 $0.3400 Washington—The National Res- decline in customer traffic levels in October 2 (+2¾) (+1) (+4½) (+1) (-¾) taurant Association’s Restaurant August. Some 33 percent of opera- THURSDAY $1.7700 $2.0200 $2.1850 $1.1350 $0.3400 tors reported an increase in cus- October 3 (+1) (+2) (+1¼) (-½) (NC) Performance Index (RPI) stood at 100.7 in August, up 0.3 percent tomer traffic between August 2018 FRIDAY $1.7900 $1.9925 $2.1850 $1.1450 $0.3275 and August 2019, while 48 percent October 4 (2) (-2¾) (NC) (+1) (-1¼) from July, the association reported. The RPI is constructed so that reported a decline. Week’s AVG $1.7485 $1.9920 $2.1595 $1.1320 $0.3410 The Expectations Index, which Change (+0.1265) (+0.0245) (+0.0125) (+0.0285) (-0.0085) the health of the restaurant industry is measured in relation to a measures restaurant operators’ Last Week’s $1.6220 $1.9675 $2.1470 $1.1035 $0.3495 six-month outlook for four indus- AVG neutral level of 100. Index values above 100 indicate that key try indicators (same-store sales, 2018 AVG $1.3885 $1.6905 $2.3090 $0.8730 $0.5590 employees, capital expenditures Same Week industry indicators are in a period of expansion, while index values and business conditions), stood at below 100 represent a period of 101.2 in August, up 1.1 percent MARKET OPINION - CHEESE REPORTER contraction for key industry indi- from July. The proportion of restaurant Cheese Comment: Two cars of blocks were sold Monday, the last at $1.9575, cators. which set the price. Five cars of blocks were sold Tuesday, the last at $1.9900, which The RPI consists of two compo- operators who expect their sales to set the price. On Wednesday, 1 car of blocks was sold at $2.0000, which raised the nents: the Current Situation Index grow continues to fall. Some 32 price. Two cars of blocks were sold Thursday, the last at $2.0200, which set the price. and the Expectations Index. The percent of operators expect to have On Friday, 1 car of blocks was sold at $1.9925, which lowered the price. The barrel Current Situation, which measures higher sales in six months, down price increased Monday on a sale at $1.6900, rose Tuesday on a sale at $1.7325, from 38 percent last month and increased Wednesday on a sale at $1.7600, rose Thursday on a sale at $1.7700, current trends in four industry and increased Friday on a sale at $1.7900. indicators (same-store sales, traffic, the lowest level in two years. Eight labor and capital expenditures), percent of operators expect their Butter Comment: The price declined Monday on a sale at $2.1275, jumped Wednes- sales volume in six months to be day on a sale at $2.1725, and increased Thursday on a sale at $2.1850. stood at 100.3 in August, down 0.5 percent from July. lower, while 60 percent think their NDM Comment: The price increased Tuesday on a sale at $1.1300, rose Wednes- Although restaurant operators sales volume will remain about the day on a sale at $1.1400, declined Thursday on a sale at $1.1350, then increased same. Friday on a sale at $1.1450. reported a net increase in same- store sales for the 22nd consecu- Similarly, restaurant operators’ Dry Whey Comment: The price rose Monday on a sale at 35.0 cents, declined tive month, August’s readings were outlook for the overall economy Tuesday on a sale at 34.75 cents, fell on a sale at 34.0 cents, and declined Friday remains uncertain. on a sale at 32.75 cents. 80 cars of Dry Whey were traded at the CME this week. somewhat dampened compared to

WHEY MARKETS - SEPT. 30 - OCT. 4, 2019 RELEASE DATE - OCTOBER 3, 2019

Animal Feed Whey—Central: Milk Replacer: .2400 (NC) – .2700 (NC) Buttermilk Powder: Central & East: 1.0400 (NC) – 1.1150 (+¼) West: .9900 (-3) – 1.0900 (NC) Mostly: 1.0400 (NC) – 1.0600 (NC) Casein: Rennet: 2.9825 (+2) – 3.1700 (-2¼) Acid: $3.1250 (+½) – $3.2850 (+½)

Dry Whey—Central (Edible): Nonhygroscopic: .2700 (-1) – .3800 (NC) Mostly: .3300 (-1) – .3600 (-¾) Dry Whey–West (Edible): Nonhygroscopic: .3000 (-3¼) – .4250 (-¾) Mostly: .3300 (-¾) – .3900 (NC) Dry Whey—NorthEast: .3200 (NC) – .4000 (NC)

Lactose—Central and West: Edible: .1800 (NC) – .4100 (-4) Mostly: .2300 (NC) – .3300 (-2½) provides expertise, so you continue Nonfat Dry Milk —Central & East: to succeed in this everchanging, Low/Medium Heat: 1.0500 (+2) – 1.1400 (+2) Mostly: 1.0800 (+3) – 1.1300 (+3) Put Urschel dynamic industry. High Heat: 1.1500 (NC) – 1.2500 (+5) Nonfat Dry Milk —Western: to the Test Turn to Urschel to provide valuable Low/Medium Heat: 1.0500 (+3¼) – 1.1500 (+2½) Mostly: 1.1000 (+5) – 1.1300 (+5) Your Partner in Productivity resources for all of your cutting High Heat: 1.2000 (+4) – 1.2500 (+½) requirements. Customers may As a valuable service to our schedule a visit to attend a test Whey Protein Concentrate—Central and West: customers, Urschel offers sample cutting of their product, or simply Edible 34% Protein: .8200 (-4) – 1.1100 (+½) Mostly: .8800 (NC) – 1.0200 (NC) test cutting free-of-charge. This ship samples for test cutting. Whole Milk—National: 1.7200 (-3) – 1.8000 (NC) may assist with R&D, help explore Visitors are also welcome to different machines to decide on schedule a plant tour to learn more Visit www.cheesereporter.com for dairy and historical cheese, butter, and whey prices a capital purchase, or discover about Urschel state-of-the-art additional cutting capabilities for manufacturing practices. your existing Urschel machinery. As HISTORICAL MONTHLY AVG BARREL PRICES your partner in productivity, Urschel Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ‘08 1.8774 1.9560 1.7980 1.8010 2.0708 2.0562 1.8890 1.6983 1.8517 1.8025 1.6975 1.5295 ‘09 1.0832 1.1993 1.2738 1.1506 1.0763 1.0884 1.1349 1.3271 1.3035 1.4499 1.4825 1.4520 ‘10 1.4684 1.4182 1.2782 1.3854 1.4195 1.3647 1.5161 1.6006 1.7114 1.7120 1.4520 1.3751 ‘11 1.4876 1.8680 1.8049 1.5756 1.6902 2.0483 2.1124 1.9571 1.7010 1.7192 1.8963 1.5839 ‘12 1.5358 1.4823 1.5152 1.4524 1.4701 1.5871 1.6826 1.7889 1.8780 2.0240 1.8388 1.6634 ‘13 1.6388 1.5880 1.5920 1.7124 1.7251 1.7184 1.6919 1.7425 1.7688 1.7714 1.7833 1.8651 ‘14 2.1727 2.1757 2.2790 2.1842 1.9985 1.9856 1.9970 2.1961 2.3663 2.0782 1.9326 1.5305 Set-up a free test-cut of your product: ‘15 1.4995 1.4849 1.5290 1.6135 1.6250 1.6690 1.6313 1.6689 1.5840 1.6072 1.5305 1.4628 Toll Free: +1.844.URSCHEL (877.2435) | [email protected] | www.urschel.com ‘16 1.4842 1.4573 1.4530 1.4231 1.3529 1.5301 1.7363 1.8110 1.5415 1.5295 1.7424 1.6132

‘17 1.5573 1.6230 1.4072 1.4307 1.4806 1.3972 1.4396 1.5993 1.5691 1.6970 1.6656 1.5426 ® Urschel, Urschel logo symbol, and The Global Leader in Food Cutting Technology are registered trademarks of Urschel Laboratories, Inc. U.S.A. ‘18 1.3345 1.4096 1.5071 1.4721 1.5870 1.4145 1.3707 1.5835 1.4503 1.3152 1.3100 1.2829 ‘19 1.2379 1.3867 1.4910 1.5925 1.6278 1.6258 1.7343 1.7081 1.7463 For more information, visit www.urschel.com

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