Volume 35 February 13, 2015 Number 4

Scan this code for breaking U.S. dairy industry reacts to news and the latest markets! idea of California federal order

A WASHINGTON — U.S. dairy ate under a FMMO, which pro- hearing, CDI, DFA and Land manufacturing milk values industry stakeholders were vides uniform dairy prices for O’Lakes note that if Califor- and broad regional market- INSIDE abuzz this week over the milk based on market prices. nia’s milk producers adopt a ing order marketwide pools idea of California joining the • The proposal federal order, the California have been established, the ✦ DFA to build new federal milk marketing order Under proposed federal order would be the largest proposal notes. headquarters in Kansas. (FMMO) after the state’s order language submitted by federal order pool with a Meanwhile, “the Cali- For details, see page 3. three largest cooperatives the cooperatives: monthly average volume of fornia state system has not late last week submitted a • California would have well over 3.4 billion pounds, adapted, leading to market ✦ Guest columnist: ‘A joint proposal to begin operat- the same pricing formulas/ eclipsing Federal Order 30’s conditions that have become supply chain is only as ing under a FMMO. system as all other federal (Upper Midwest Order) aver- increasingly diffi cult for Cali- strong as its weakest link.’ California Dairies Inc. orders for all classes of milk. age 2014 monthly pool volume fornia dairy farmers and the For details, see page 4. (CDI), Dairy Farmers of • The California quota of 2.7 billion pounds. operation of the cooperatives America Inc. (DFA) and program would continue as it In terms of Class I volume, they have built,” the proposal ✦ Retail WATCH Exclusive: Land O’Lakes Inc. on Feb. is today, providing a monthly it would be the third-largest says. Great Lakes Cheese 5 petitioned USDA to hold a payment above the blend of the order behind Federal The failure of California launches organic cheese hearing to consider establish- price to the owners of the Order 1 (Northeast Marketing regulations to establish mini- for store brand customers. ing a FMMO for California. quota. Order), approximately 755 mum prices for California pro- For details, see page 7. Under existing regula- • The transportation and million pounds, and Federal ducers which refl ect national tions, California dairy farmers fortifi cation subsidy programs Order 33 (Mideast Market- values for classified milk ✦ IDFA calls for safety operate under statewide milk — both currently part of the ing Order), approximately uses has cost California dairy award nominations. pricing plans. The majority of California system — would 517 million pounds, with an farmers more than $1.5 bil-

For details, see page 16. farmers in other states oper- continue under the proposed estimated monthly volume lion since 2010, according to California federal order. averaging 452 million pounds, published industry estimates, • All California plants the proposal says. the proposal continues. purchasing milk from Califor- “In spite of its signifi cance “Therefore, the coopera- Organic industry prepares for nia Grade A dairy producers nationally, California has tives and their members, rep- would be pool plants. Volun- been the most important re- resenting the overwhelming organic check-off proposal tary depooling of any class of gion in the country which has majority of dairy farmers in milk would not be permitted. not been part of the FMMO California, are bringing this By Rena Archwamety • All dairy producers system,” the proposal says. petition for a FMMO in Cali- throughout California would For many decade the fornia,” the co-ops say. WASHINGTON — The U.S. organic industry is considering a fi rst-of- receive the same blend price California Department of The proposal notes that the its-kind organic check-off program, the Organic Research and Promo- (notwithstanding the quota Food and Agriculture (CDFA) U.S. Congress in 2014 provided tion Program (ORPP), that would help fund consumer education and payments received by quota- has administered a state a necessary prerequisite for marketing for organic products, as well as help fund research and draw holders), just as all California milk marketing order that this request when it reautho- new farmers into organic production. producers currently receive reasonably balanced indus- rized the language in the 1996 While there currently are 22 national check-off programs, all are the same overbase price. try interests, but in recent Farm Bill which allows USDA commodity-specifi c and benefi t conventional farmers and processors In their request for a years, national uniformity of Turn to FMMO, page 14 D more than those in organic, according to some industry members. “While the conventional check-off promotes and researches milk, it does not research organic milk and does not promote organic milk,” says Perry Clutts, organic dairy farmer and owner of Pleasantview Farm, Circleville, Ohio. “Organic milk is different from regular milk U.S. West Coast ports USDA lowers 2015 — there is a law that tells us there is a difference. It’s governed by milk production the National Organic Program. There are clear rules that state the undergo partial shutdown forecast in report difference in what it takes to be organic, so the main thing that the SAN FRANCISCO — Several West Coast ports were effectively conventional check-off does not do for organic is to establish that closed to cargo freighters on Thursday for the second time in less WASHINGTON — The U.S. difference.” than a week under a partial shutdown imposed by shipping lines dairy herd may be growing In December, USDA announced a proposal to exempt more organic and terminal operators, says the International Longshore and Ware- — USDA’s “Cattle’ report farmers and handlers from paying into conventional commodity check- house Union (ILWU). The shutdowns are part of an escalating labor estimates dairy replacement off programs, as directed by the 2014 Farm Bill. Currently, the exemption dispute between the Pacifi c Maritime Association (PMA) and ILWU. heifers expected to calve dur- only applies to entities that solely produce, handle, market or import “Today, the Pacifi c Maritime Association, a consortium of in- ing 2015 are up about 1 per- products that are certifi ed 100 percent organic. (See “USDA proposes ternational corporations, informed the International Longshore cent from a year ago, while extension of organic assessment exemptions administered by AMS” and Warehouse Union that ships will not be worked at West Coast the number of milk cows on in the Dec. 19, 2014, issue of Cheese Market News.) This could free ports four of the next fi ve days,” said a statement issued by ILWU Jan. 1, 2015, was 1 percent up an extra $13.6 million for organic stakeholders to invest back into on Wednesday. “This action marks the second time in less than a above 2014 and the highest the organic industry. The comment deadline on this proposal has been week that employers have idled vessels.” since 2009 — but slower extended to Feb. 17. ILWU says the same group of companies also canceled a nego- growth in output per cow is The 2014 Farm Bill also authorizes USDA to consider and hold a vote tiating session scheduled for Wednesday with ILWU’s Negotiating more than offsetting faster D Turn to ORGANIC, page 12 Turn to PORTS, page 15 D Turn to WASDE, page 15 D © 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 2 CHEESE MARKET NEWS® — February 13, 2015 MARKET INDICATORS

Chicago Mercantile Exchange Cash prices for the week ended February 13, 2015 CHEESE FUTURES for the week ending February 12, 2015 (Listings for each day by month, settling price and open interest) Monday Tuesday Wednesday Thursday Friday Feb. 9 Feb. 10 Feb. 11 Feb. 12 Feb. 13 Fri., Feb. 6 Mon., Feb. 9 Tues., Feb. 10 Wed., Feb. 11 Thurs., Feb. 12 FEB15 1.563 4,276 1.553 4,296 1.551 4,293 1.550 4,299 1.556 4,361 Cheese Barrels MAR15 1.612 4,610 1.578 4,661 1.520 4,679 1.527 4,686 1.574 4,727 Price $1.4825 $1.4800 $1.4800 $1.4800 $1.4850 APR15 1.619 4,137 1.587 4,155 1.530 4,161 1.535 4,177 1.570 4,169 Change NC -1/4 NC NC +1/2 MAY15 1.633 3,864 1.608 3,873 1.583 3,923 1.583 3,947 1.620 3,949 JUN15 1.677 3,784 1.655 3,801 1.640 3,802 1.646 3,807 1.669 3,807 Cheese 40-lb. block JUL15 1.725 2,869 1.720 2,882 1.713 2,916 1.715 2,916 1.725 2,919 Price $1.5350 $1.5350 $1.5300 $1.5300 $1.5300 AUG15 1.760 2,548 1.760 2,554 1.760 2,570 1.764 2,572 1.775 2,572 SEP15 1.780 2,573 1.770 2,586 1.770 2,549 1.770 2,553 1.775 2,553 Change NC NC -1/2 NC NC OCT15 1.793 2,276 1.795 2,282 1.788 2,260 1.788 2,253 1.800 2,250 NOV15 1.756 2,244 1.760 2,254 1.761 2,254 1.770 2,260 1.775 2,270 Weekly average (Feb. 9-13): Barrels: $1.4815(-.0060); 40-lb. Blocks: $1.5320(-.0030). DEC15 1.730 2152 1.740 2,162 1.740 2,169 1.740 2,169 1.750 2,184 Weekly ave. one year ago (Feb. 10-14, 2014): Barrels: $2.1035; 40-lb. Blocks: $2.1100. JAN16 1.730 126 1.730 126 1.730 126 1.730 126 1.730 126 FEB16 1.730 89 1.730 89 1.730 89 1.730 89 1.730 89 Grade A NDM MAR16 1.700 88 1.700 88 1.700 93 1.700 93 1.700 93 $1.0950 $1.0925 $1.1250 $1.1375 $1.1500 APR16 1.700 76 1.700 76 1.700 81 1.700 81 1.700 81 Price MAY16 1.720 73 1.720 73 1.720 73 1.720 73 1.720 73 Change -1/2 -1/4 +3 1/4 +1 1/4 +1 1/4 JUN16 1.720 74 1.720 74 1.720 74 1.720 74 1.720 74 Total Contracts Traded/ Weekly average (Feb. 9-13): Grade A: $1.1200(+.0645). Open Interest 390/35,859 488/36,032 711/36,112 264/36,175 430/36,297 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. Grade AA Butter Price $1.7450 $1.7450 $1.7100 $1.7100 $1.7200 Change -5 NC -3 1/2 NC +1 Weekly average (Feb. 9-13): Grade AA: $1.7260(-.0815). DRY WHEY FUTURES* for the week ended February 12, 2015 Class II Cream (Major Northeast Cities): $1.9882(+.1738)–$2.2232(+.0954). (Listings for each day by month, settling price and open interest)

Fri., Feb. 6 Mon., Feb. 9 Tues., Feb. 10 Wed., Feb. 11 Thurs., Feb. 12 Sign up for our daily fax or e-mail service for just $104 a year. Call us at 608-288-9090. FEB15 54.75 776 55.00 769 54.75 752 54.50 747 54.33 721 MAR15 48.50 891 47.00 894 48.00 900 47.68 895 49.00 891 APR15 45.75 812 44.50 814 45.00 821 44.00 818 45.00 813 MAY15 42.00 802 41.25 804 42.70 825 41.30 834 42.00 826 JUN15 40.00 770 39.08 767 38.23 786 38.93 790 39.75 792 JUL15 40.75 616 40.00 623 39.00 605 39.50 608 41.25 611 AUG15 41.50 516 40.50 521 40.00 527 40.25 526 42.00 524 Weekly Cold Storage Holdings February 9, 2015 SEP15 41.43 493 40.98 496 40.00 487 39.73 488 41.00 487 OCT15 40.03 422 39.50 421 39.50 421 On hand Week Change since Feb. 1 Last Year 40.00 424 39.50 421 NOV15 40.50 387 40.25 395 40.00 400 40.00 400 41.00 399 Monday Change Pounds Percent Pounds Change DEC15 40.75 349 40.75 349 40.25 349 40.25 349 40.75 352 Butter 7,024 +157 +372 + 6 10,436 -3,412 JAN16 40.53 22 40.75 22 40.75 22 40.75 22 40.75 22 Cheese 99,268 -1,491 -1,611 -2 92,911 +6,357 FEB16 40.53 14 40.75 14 40.75 14 40.75 14 40.75 14 MAR16 38.78 19 38.78 19 38.78 19 38.78 19 38.78 19 (These data, which include government stocks and are reported in thousands of pounds, are based on reports from Total Contracts Traded/ a limited sample of cold storage centers across the country. This chart is designed to help the dairy industry see the Open Interest 97/6,933 80/6,955 272/6,972 120/6,975 211/6,936 trends in cold storage between the release of the National Agricultural Statistics Service’s monthly cold storage reports.) Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. *Total Contracts Traded/Open Interest reflect additional months not included in this chart.

CLASS III PRICE Dry Products* February 13, 2015 (Dollars per hundredweight, 3.5% butterfat test) YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2009 10.78 9.31 10.44 10.78 9.84 9.97 9.97 11.20 12.11 12.82 14.08 14.98 NONFAT DRY MILK 2010 14.50 14.28 12.78 12.92 13.38 13.62 13.74 15.18 16.26 16.94 15.44 13.83 Central & East: low/medium heat $.9100(+1)-$1.1500(+5); 2011 13.48 17.00 19.40 16.87 16.52 19.11 21.39 21.67 19.07 18.03 19.07 18.77 mostly $1.0325(+6)-$1.0700(+1 3/4). 2012 17.05 16.06 15.72 15.72 15.23 15.63 16.68 17.73 19.00 21.02 20.83 18.66 high heat $1.1050(+2 1/2)-$1.2050(+2 1/2). 2013 18.14 17.25 16.93 17.59 18.52 18.02 17.38 17.91 18.14 18.22 18.83 18.95 West: low/medium heat $.9500(+2 1/2)-$1.1300(+5); 2014 21.15 23.35 23.33 24.31 22.57 21.36 21.60 22.25 24.60 23.82 21.94 17.82 mostly $1.0000(+5)-$1.0500(+2 1/2). 2015 16.18 high heat $1.0075(+3 1/4)-$1.1850(-4 3/4). Calif. manufacturing plants: extra grade/grade A weighted ave. $1.0397(+.0721) based on 7,864,339 lbs.

WHOLE MILK POWDER (National): $1.2500(-2)-$1.5200(+9). STAFF SUBSCRIPTION INFORMATION Susan Quarne, Publisher Cheese Market News®, Publication #0598-030, (ISSN 0891- EDIBLE LACTOSE (PH 608/831-6002; FAX 608/831-1004) 1509), is published weekly by Quarne Publishing LLC, 4692 (FOB)Central and West: $.1600(-3)-$.4700(+3); mostly $.2300(-2)-$.3500(-2). e-mail: [email protected] Signature Drive, Middleton, WI 53562; Phone 608/831-6002; Kate Sander, Editorial Director FAX 608/831-1004. Periodicals postage paid at Madison, WI. (PH 509/962-4026; FAX 509/962-4027) Circulation records are maintained by Quarne Publishing LLC, 4692 Signature Drive, Middleton, WI 53562. POSTMASTER: WHEY POWDER e-mail: [email protected] Send address changes to Cheese Market News®, Subscriber Central: nonhygroscopic $.4000-$.6275; Alyssa Mitchell, Senior Editor Services, P. O. Box 628254, Middleton, WI 53562; Form mostly $.4500(-3)-$.5100(-3). (PH 608/288-9090; FAX 608/288-9093) 3579 requested; or call direct at 608/831-6002. All rights e-mail: [email protected] West: nonhygroscopic $.3800-$.6000(-1/4); reserved under the United States International and Pan- mostly $.4200-$.4800(-1). Rena Archwamety, News/Web Editor American Copyright Conventions. No part of this publication (PH 608/288-9090; FAX 608/288-9093) may be reproduced, stored in a retrieval system or transmitted (FOB) Northeast: extra grade/grade A $.4300-$.6075(-3/4). e-mail: [email protected] in any form or by any means, mechanical, photocopying, electronic recording or otherwise, without the prior written ANIMAL FEED WHEY (Central): Whey spray milk replacer $.3000-$.5050. REGULAR CONTRIBUTORS permission of Quarne Publishing LLC. Opinions expressed in articles are those of the authors and do not necessarily John Umhoefer, FCStone, International Dairy Foods UHÁHFWWKRVHRI4XDUQH3XEOLVKLQJ//&GED&KHHVH0DUNHW WHEY PROTEIN CONCENTRATE (34 percent): $.9000(+1/2)-$1.2800; Association, National Milk Producers Federation, U.S. ® ® News . Cheese Market News does not endorse the products mostly $.9900(-3)-$1.2250. Dairy Export Council, Eric Meyer, Rice Dairy of any advertiser and does not assume and hereby disclaims SUBSCRIPTIONS & BUSINESS STAFF any liability to any person for any loss or damage caused by errors or omissions in the material contained herein, regard- Subscription/advertising rates available upon request DRY BUTTERMILK less of whether such errors result from negligence, accident (FOB)Central & East: $.7200-$1.0000. Contact: Susan Quarne - Publisher or any other cause whatsoever. Copyright 2015 by Quarne P.O. Box 628254, Middleton, WI 53562 Publishing LLC. (FOB) West: $.7825(+3 1/4)-$.9850(-3 1/2); mostly $.8500(-5)-$.9150(-3 3/4). PHONE 608/831-6002 • FAX 608/831-1004 Subscriptions: $145 for U.S., second-class delivery; IRU86ÀUVWFODVVGHOLYHU\LQFOXGLQJ&DQDGDDQG International rate to all others. Printed in U.S.A. CASEIN: Rennet $3.6500-$4.0000; Acid $3.7000-$4.4000. WEBSITE: www.cheesemarketnews.com *Source: USDA’s Dairy Market News

DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions. © 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) February 13, 2015 — CHEESE MARKET NEWS® 3 NEWS/BUSINESS MARKET INDICATORS

DFA plans new headquarters in Kansas KANSAS CITY, Mo. — Dairy Farmers “This building will pay tribute of America (DFA) has announced plans to our cooperative’s farmer-owners to build its new global headquarters in and the sustainable practices they Kansas City, Kan. employ on their dairies,” says Rick The announcement means the com- Smith, DFA president and CEO. “More pany will relocate is 325 employees from importantly, as DFA strives to be the space it has leased in Missouri since its workplace of choice for employees, formation in 1998 to a new building be- the new building will feature a ing constructed in the expanded Village modern, fl exible work environment West area in Kansas City, Kan. designed for employees of today and The three-story, 100,000-square-foot tomorrow.” building will be constructed with sustain- Expected completion of the glob- ability in mind and designed to LEED al headquarters project is Decem- standards, DFA says. ber 2016. CMN Ambriola Co. acquired by Auricchio of Italy For more information please visit www.devilletechnologies.com CME FUTURES for the week ended February 12, 2015 WEST CALDWELL, N.J. — The Amb- the importer of only the fi nest specialty riola Co. Inc., one of the largest import- cheeses from Italy,” says Phil Marfuggi, Class III Milk* ers and distributors of specialty Italian who has been named CEO of the Amb- Fri., Feb. 6 Mon., Feb. 9 Tues., Feb. 10 Wed., Feb. 11 Thurs., Feb. 12 cheese and Prosciutto di Parma from riola Co. Inc. FEB15 15.88 6,025 15.78 5,950 15.75 5,905 15.75 5,876 15.80 5,739 Italy, has been acquired by Auricchio Alberto Auricchio will serve as MAR15 16.00 5,761 15.51 5,887 15.11 5,956 15.11 5,957 15.57 5,984 APR15 15.91 5,234 15.46 5,294 15.00 5,422 15.02 5,449 15.43 5,428 S.p.A. of Cremona, Italy. president and Ann Marie Hauman as MAY15 15.93 4,725 15.49 4,805 15.22 4,912 15.30 4,938 15.71 4,954 The Ambriola Co. will continue to oper- vice president. JUN15 16.25 4,542 15.90 4,712 15.63 4,717 15.74 4,732 16.10 4,728 ate at its location in West Caldwell, N.J. Auricchio S.p.A. has seven manu- JUL15 16.75 3,504 16.45 3,547 16.31 3,672 16.45 3,665 16.67 3,645 AUG15 17.10 3,008 16.95 3,041 16.86 3,059 16.99 3,064 17.16 3,061 The company has imported fi ne Italian facturing plants in Italy. In addition to SEP15 17.16 2,868 17.09 2,888 16.96 2,881 17.05 2,883 17.14 2,883 cheeses since 1921 and is the sole importer Auricchio Provolone and Locatelli, it OCT15 17.28 2,589 17.21 2,589 17.15 2,598 17.21 2,602 17.27 2,604 of Auricchio Provolone and the Locatelli produces a full range of DOP cheese, NOV15 17.07 2,450 17.05 2,459 16.98 2,458 17.04 2,461 17.09 2,462 DEC15 16.79 2,240 16.66 2,260 16.68 2,256 16.70 2,256 16.77 2,258 brand, both produced by Auricchio. including Gorgonzola, Taleggio, Quar- JAN16 16.64 249 16.64 249 16.64 250 16.64 250 16.64 252 “As a wholly-owned subsidiary of tirolo, Mascarpone, Ricotta Salata, FEB16 16.58 120 16.58 121 16.50 122 16.50 122 16.55 127 Auricchio S.p.A., the Ambriola Co. Inc. sheep’s milk cheeses, Pecorino Romano MAR16 16.40 101 16.40 102 16.34 103 16.34 103 16.32 114 APR15 16.48 82 16.48 82 16.48 82 16.48 82 16.48 82 will continue to build on its reputation as and Parmigiano Reggiano. CMN Total Contracts Traded/ Open Interest 1,597/43,728 1,415/44,216 1,935/44,623 825/44,670 1,458/44,551 Ad volume for butter declines from prior week Class IV Milk*

WASHINGTON — Advertising volume AMS says natural varieties of cheese Fri., Feb. 6 Mon., Feb. 9 Tues., Feb. 10 Wed., Feb. 11 Thurs., Feb. 12 for butter declined the week of Feb. 6 in 1-pound blocks last week had a weight- FEB15 14.69 295 14.45 295 14.45 294 14.45 294 14.25 296 compared to the previous week, says ed average advertised price of $4.52, up MAR15 15.35 354 15.05 355 15.05 355 15.11 355 15.11 355 APR15 16.11 337 15.65 338 15.65 337 15.81 342 15.91 343 USDA’s Agricultural Marketing Service from $3.89 one week earlier and $3.64 MAY15 16.23 326 15.77 343 15.77 343 15.85 373 16.03 374 (AMS) in its weekly National Dairy Retail one year earlier, while 2-pound cheese JUN15 16.69 298 16.19 309 16.19 309 16.28 311 16.50 312 JUL15 17.00 177 16.62 188 16.62 188 16.62 192 16.79 194 Report released last Friday. blocks had a weighted average advertised AUG15 17.05 205 16.80 206 16.80 216 16.82 220 16.94 222 AMS says national conventional price of $7.26, up from $6.40 two weeks SEP15 17.10 126 17.10 126 17.04 127 17.04 135 17.20 137 butter in 1-pound packs last week had earlier and $6.30 one year earlier. OCT15 17.10 131 17.10 131 17.10 131 17.10 131 17.10 133 NOV15 17.10 169 17.10 169 17.10 169 17.10 169 17.15 171 a weighted average advertised price of AMS says natural varieties of 8-ounce DEC15 17.10 193 17.10 193 17.10 193 17.10 193 17.10 193 $3.03, down from $3.32 one week earlier cheese shreds last week had a weighted Total Contracts Traded/ but up from $2.97 one year earlier. average advertised price of $2.52, down Open Interest 101/2,615 56/2,657 16/2,666 69/2,719 25/2,734 National conventional natural variet- from $2.56 one week earlier but up from ies of 8-ounce cheese blocks last week had $2.18 one year earlier, while 1-pound Cash-Settled NDM* a weighted average advertised price of shreds had a weighted average adver- Fri., Feb. 6 Mon., Feb. 9 Tues., Feb. 10 Wed., Feb. 11 Thurs., Feb. 12

$2.47, down from $2.50 one week earlier tised price of $3.50, down from $4.08 one FEB15 106.75 656 106.00 656 106.00 652 107.00 656 107.00 660 but up from $2.30 one year ago, AMS says. week earlier and $4.60 one year ago. CMN MAR15 115.20 686 112.80 686 112.80 688 114.55 687 114.75 687 APR15 123.00 627 120.00 630 119.00 638 121.50 641 122.25 637 MAY15 123.00 612 121.00 607 121.00 603 122.33 608 123.40 604 JUN15 128.53 501 126.50 501 125.50 508 127.00 505 128.25 505 JUL15 130.00 429 129.25 431 129.00 448 130.00 444 132.00 458 National Dairy Products Sales Report AUG15 131.60 338 131.60 350 131.00 353 130.75 355 133.35 359 SEP15 131.75 289 132.00 290 132.00 298 131.25 301 134.00 304 For the week ended: 2/7/15 1/31/15 1/24/15 1/17/15 OCT15 131.75 218 132.85 228 132.85 228 132.95 228 133.65 228 NOV15 133.05 300 133.25 300 133.00 300 133.00 300 134.00 300 Cheese 40-lb. Blocks: DEC15 133.05 298 133.25 298 133.25 298 133.25 298 134.00 298 Average price1 $1.5398 $1.5579 *$1.5697 *$1.5818 Total Contracts Traded/ 2 11,316,780 13,261,663 *13,792,891 *13,332,025 Sales volume Open Interest 317/4,968 157/4,991 168/5,028 113/5,037 71/5,054 Cheese 500-lb. Barrels: Average price1 $1.5950 $1.5861 $1.6351 $1.6417 Cash-Settled Butter* Adj. price to 38% moisture $1.5179 $1.5122 $1.5579 $1.5661 Sales volume2 10,173,876 10,492,928 9,927,461 9,843,246 Fri., Feb. 6 Mon., Feb. 9 Tues., Feb. 10 Wed., Feb. 11 Thurs., Feb. 12 Moisture content 34.85 34.97 34.93 35.01 FEB15 175.55 851 173.03 843 175.55 844 173.50 844 171.00 845 Butter: MAR15 178.00 906 175.00 904 177.93 893 176.50 889 175.28 889 APR15 181.25 708 177.53 735 180.95 692 179.00 703 179.00 701 1 $1.6287 $1.5641 $1.5548 $1.5510 Average price MAY15 179.75 703 178.15 717 180.55 715 178.63 718 178.75 720 2 Sales volume 5,833,260 6,263,066 4,644,603 3,708,678 JUN 15 182.00 637 179.00 648 180.03 648 179.00 645 179.23 645 Nonfat Dry Milk: JUL15 183.00 416 180.00 431 180.78 431 180.00 430 181.00 432 Average price1 $1.0194 *$0.9726 $1.0020 $1.0098 AUG15 183.78 338 182.00 352 182.53 355 182.00 356 182.43 356 Sales volume2 19,256,143 *33,944,718 *22,809,799 26,119,672 SEP15 185.98 338 184.75 348 185.50 350 184.78 352 185.28 353 OCT15 184.25 330 185.00 337 185.00 337 185.00 337 185.28 337 Dry Whey: NOV15 185.03 233 185.50 237 185.75 256 185.75 256 185.75 256 Average price1 $0.5599 $0.5779 *$0.5765 $0.5924 DEC15 183.25 172 181.28 172 182.53 172 182.55 172 182.75 172 Sales volume2 5,683,872 5,100,568 *6,452,069 7,869,175 Total Contracts Traded/ Open Interest 174/5,643 203/5,704 42/5,717 */Revised. 1/Prices weighted by volumes reported. 2/Sales as reported by participating manufacturers. 271/5,735 94/5,713 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. Reported in pounds. More information is available by calling AMS at 202-720-4392. *Total Contracts Traded/Open Interest reflect additional months not included in this chart.

DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions. © 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 4 CHEESE MARKET NEWS® — February 13, 2015 EXPORT TOOL KIT CMN Exclusive!

competitive differentiator. Research seem systemic are showing signs of Perspective: studies cited in the report show that easing. When engineers complete the supply chain leaders enjoy average EBIT largest expansion project in the history Export Expertise (earnings before interest and taxes) of the Panama Canal (expected in 2016), margins more than twice as high as East Coast ports will grow much more Ross Christieson is senior less proactive supply chain managers. price competitive with the West Coast, vice president, market research Assessing an ESC begins by bench- and any U.S. supplier located near the and analysis, U.S. Dairy Export marking against industry best practices. Mississippi River will see a major boost Council. He contributes this column On the manufacturing side, ESC best in supply chain effi ciency. exclusively for Cheese Market practices mean fewer sites, effi cient In addition, some U.S. companies News®. storage, close proximity to rail access already excel at managing a modern and optimized manufacturing and and effective ESC and others are clearly packaging practices. improving. At the origin warehouse, top prac- U.S. dairy suppliers have taken great titioners have invested in logistics strides in shifting into an export mind set infrastructure, optimized warehousing in recent years: manufacturing products and packaging practices, utilize third to the specs of foreign markets, investing party logistics, load containers at the in personnel dedicated to servicing over- warehouse and minimize touch points seas buyers and maintaining a consistent A supply chain is only as from grading to ship side. presence on the world stage even when In terms of transit/logistics, the top of market conditions turn less favorable. strong as its weakest link the class have effi cient, export-oriented Excellence in managing the ESC is ports, work with ESC service providers, another step in that direction and one The West Coast dockworkers’ con- export supply chain (ESC) to address such partner with allied sectors and have that cannot be considered optional. U.S. tract expired last July. Months of ne- criticisms, enhance their competitive- strategies in place to minimize damage. suppliers’ reputations and customer gotiations have devolved into epic work ness and solidify customer relationships. And in the destination market, you relationships are at stake. Companies slowdowns and, most recently, threats The starting point is to look at the can add value by offering offshore inven- with lax supply chain management who of a lockout. Right now, Japanese dairy ESC holistically. Too often, shipping tory management. frequently experience damaged product importers are reporting delays of up to takes place in an operational vacuum. Suppliers face a number of chal- and extended delivery times can negate two months on U.S. shipments due to Dairy suppliers often take a reactive lenges to achieve such benchmarks, investments in manufacturing and port congestion. approach to logistics instead of un- some of which are out of their control. marketing that were made specifi cally It is a bad situation for any exporter derstanding it in the context of the Geography is a major factor in U.S. to meet the needs of global buyers. — and especially bad for U.S. dairy, overall business relationship with the dairy ESC efficiency, for example. Upgrading ESC capabilities im- because it reinforces negative impres- customer. The ESC is an entire value California has a competitive advantage proves the supplier value proposition sions some overseas buyers have of U.S. chain — a network of manufacturers, in shipping to Asia, while Midwest sup- and business relationships, improves ef- logistics capabilities. warehouses, logistics service provid- pliers face greater complications to fi ciency and profi tability, and improves According to interviews for a recent ers, distribution centers and retailers destinations outside of the Americas. adaptability and responsiveness. CMN USDEC research study, “Export Supply — and failing one part of that chain Limitations like over-the-road truck Chain and Logistics Management,” affects its entirety. weight restrictions and other regulatory Note: The U.S. Dairy Export Coun- overseas trade contacts say that for A reactive approach fosters un- constraints, resource shortages (chassis, cil is primarily supported by Dairy some U.S. suppliers, delivery times certainties and knowledge gaps. For drivers, containers), volatile shipping Management Inc. through the producer are longer than competitors, costs are example, shipping costs can be high, and volumes and carrier rates are mostly checkoff that builds on collaborative higher and packaging is weaker and the expenses related to damage, delays outside the control of U.S. dairy suppliers. industry partnerships with processors, often unsuitable to long-distance transit and demurrage are not always readily On the other hand, there are oppor- trading companies and others to build and harsh temperature conditions in visible. Unless a company identifi es tunities to improve. In terms of rates, global demand for U.S. dairy products. destination markets. and monitors such costs and other key industry competition among carriers is While U.S. suppliers can have little performance indicators, the process high, economic conditions have created The views expressed by CMN’s guest direct impact on the West Coast contract can be easily mismanaged. excess capacity, and smaller carriers are columnists are their own opinions impasse, they can take action to develop Companies that view the ESC as pricing aggressively to secure business. and do not necessarily refl ect those of a faster, more fl exible, more responsive a strategic asset can turn it into a Even some of those challenges that Cheese Market News®. U.S. milk goat More News, More Solutions, Yes, please send me inventory climbs More Choices! the Exclusive WASHINGTON — The number of U.S. 2014 Key Players milk goats in the United States grew from Reprint for 358,000 head to 365,000 head between only $30! Jan. 1, 2014, and Jan. 1, 2015, a 2-percent (Credit Card or Prepayment Only) rise, according to data recently released by USDA’s National Agricultural Statistics ® CHEESE MARKET NEWS SUBSCRIPTION FORM: Service (NASS). 1 Year Rates (52 issues) 2 Year Rates (104 issues) ELECTRONIC 1 Year Rates (52 issues) Wisconsin continues to rank as the No. F $145 (2nd Class) F $200 (1st Class/Canada) F $205 (2nd Class) F $325 (1st Class/Canada) F $145 (Email Only; Without Mail Service) F $330 (International) F $525 (International) F $210 (Email With 2nd Class Mail Service Only) 1 state for milk goats, despite a 4-percent Texas, the only other state with more *EMAIL (Required): ______SIGNATURE: ______than 20,000 head of milk goats as of Jan. 1, For immediate service, call (608) 831-6002, email [email protected] or fax your subscription to (608) 831-1004. 2015, was home to 23,000 milk goats, a gain of SUBSCRIBER SERVICES • P.O. Box 628254 • Middleton, Wisconsin 53562 E-mail: [email protected] • Website: www.cheesemarketnews.com 3,000 head or 15 percent from a year earlier. According to NASS, all goat inventory in the United States on Jan. 1, 2015, totaled 2.68 For more information please visit www.cheesemarketnews.com million head, up 2 percent from 2014. CMN © 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) February 13, 2015 — CHEESE MARKET NEWS® 5 NEWS/BUSINESS

17th Annual Dairy Ingredients Symposium to highlight present technologies, future trends By Rena Archwamety some people to our program this year implement in the immediate future.” The symposium also will include a to talk about some challenges and In addition to the sessions on long question and answer session for attend- SHELL BEACH, Calif. — The 17th opportunities to maximize the use of shelf-life products and reducing micro- ees to give feedback on what’s good and Annual Dairy Ingredients Symposium, dairy ingredients in these long-life milk bial counts, other topics include: nutri- where improvement is needed in terms which will take place here Feb. 17-18 applications. There’s a growing interest tion, health and wellness; fl avor in fl uid of information. at The Cliff’s Resort, will focus on tools in having shelf-stable dairy beverages, milk and dried dairy ingredients; GMO “A lot of information is generated, available right now, as well as future both in sports nutrition and traditional labeling; customer needs and research and we want to know how to improve trends, to help industry members milk.” on dairy ingredients; and Chr. Hansen’s it to get people to use it quickly and maximize the value of milk and dairy Another mini session will offer alternative color for Cheddar and take advantage of it,” Tong says. “Part ingredients. existing tools manufacturers can use Gouda. Andrei Mikhalevsky, president of the symposium is to provide a forum About 75-100 people from across to help maintain low microbial counts CEO of California Dairies Inc., and Geri so attendees can come listen, and to the country are expected to attend this in dairy ingredients, as well as more Berdak, senior vice president of health help them to move the gears forward.” year’s symposium, which still is open for futuristic information on research and wellness at Dairy Management Inc., More information about the sym- those wishing to register. Attendees can that is being done on non-fouling and will open the program by addressing posium and registration can be found expect tools to aid in the manufacture antimicrobial coatings to help minimize challenges, opportunities and trends at www.dptc.calpoly.edu/content/ of existing dairy products, updates on surface deposits on stainless steel dairy in the dairy industry. ingredients_symposium. CMN trends and insights into future oppor- equipment. tunities for ingredient manufacturing, Tong says the symposium also will Entry deadline nearing for cheese contest says Phillip S. Tong, professor at the Cal give attendees a sense of where their Poly Dairy Products Technology Center, particular activities fi t in the broader MADISON, Wis. — Entry forms and sponsor. which is sponsoring the symposium scope of the dairy ingredients industry. fees for cheese, butter and yogurt The 2015 contest will be held March along with the U.S. Dairy Export Council, “While they may not all be doing entries in the 2015 U.S. Championship 17-18 at the Wisconsin Center in Milwau- California Dairy Research Foundation, marketing, they are gaining information Cheese Contest are due Wednesday, kee, Wis., with the fi nal round judging GEA and Chr. Hansen. from the symposium that helps them to Feb. 18, 2015. Complete entry informa- to determine the 2015 U.S. Champion One of the program’s eight mini have a broader view of where their piece tion, as well as the ability to securely Cheese to take place at the Hyatt Re- sessions will be devoted to producing fi ts in the industry,” Tong says, adding enter and pay online, is available at gency Milwaukee during an evening longer shelf-life products using dairy that there is a diverse range of people uschampioncheese.org. Ninety-nine charity event Thursday, March 19. ingredients. who attend the conference. “They will percent of the entries to date have Product entries must be received at “I think there’s a growing interest get an update on trends that will impact been made using the MyEntries online WOW Logistics in Little Chute, Wis., no in trying to improve the properties of their activities in the next 2-5 years, system, according to the Wisconsin later than Friday, March 6. Fresh cheeses ingredients for long-life or UHT milk helping them understand what could be Cheese Makers Association, the contest and yogurts may arrive by March 10. CMN products,” Tong says. “We’ve invited coming across their desk to evaluate and

Sonoma Valley Cheese Conference

SHREDDING Photo courtesy of The Epicurean Connection SONOMA, Calif. — Sheana Davis, front center, The Epicurean Connection, is host- ing the 12th annual Sonoma Valley Cheese Conference Feb. 21-26 in Sonoma, Calif. Pictured with Davis is a group of nine chefs from last year’s conference who com- SYSTEMS peted in a Mac and Cheese Contest, including the winner, Tony Ghilarducci, far left. Unparalled Consistency and Operator Control This year’s Sonoma Valley Cheese Conference features guest speakers from around the country including Sarah Marcus, Briar Rose; Christine Hyatt, Cheese Chick; With models to suit all production levels, Johnson Industries cheese Dr. Moshe Rosenberg, University of California, Davis; David Mathieu, Clauger U.S.; shredders are designed to reduce fines, easily adjusted for variety of Ari Weinzeweig, Zingerman’s; Jonathon Bowne, California Artisan Cheese Guild; shred types, and capable of blending two or more cheeses at once. as well as cheesemakers from the Wisconsin Milk Marketing Board and California Milk Advisory Board. The event showcases cheesemakers leading the artisan and farmstead cheese movement, as well as wines and ales from Sonoma County. Conference festivities kick off in San Francisco on Feb. 21, with Cheese Plus, San Francisco cheese retailer, hosting a public Winter Artisan Cheese Fair featur- ing artisan cow, sheep and goat cheese producers, wines, brews and guest chefs from 1 to 4 p.m. A Winter Artisan Cheese Fair is planned in Sonoma on Feb. 22 from 1 to 4 p.m. at the Ramekins Culinary School. The conference proper begins FOR MORE INFORMATION, VISIT US ON THE WEB AT Monday, Feb. 23 at the Sonoma Valley Inn. www.johnsonindint.com For more information, a conference line up or to register, visit www. theepicureanconnection.com/sonoma-valley-cheese-conference. CMN For more information please visit www.johnsonindint.com © 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 6 CHEESE MARKET NEWS® — February 13, 2015 PEOPLE NEWS/BUSINESS

Comings and goings ... comings and goings Industry groups laud congressional leaders for addressing trademarks, common names AgSource Laboratories recently Kraft’s international market, including announced Jean Bernius has accepted exports. Kraft also has announced that WASHINGTON — The dairy industry intellectual property rights eroded in the position of water sales representa- Teri List-Stoll, executive vice president this week applauded congressional lead- various markets around the world,” the tive. In her new role, Bernius will be and chief fi nancial offi cer, and Deanie ers of the Senate Finance, House Ways letter says. “This is already occurring in working with the AgSource locations in Elsner, executive vice president and and Means, Senate Judiciary, and House many countries where U.S. companies Marshfi eld, Wis., and Ellsworth, Iowa, chief marketing offi cer, will be leaving Judiciary committees for questioning face geographical indications registra- focusing specifi cally on the certifi ed their leaving their positions effective Feb. the way a United Nations agency is tions that threaten to internationally water and wastewater testing needs of 28. Additionally, Chuck Davis, executive considering treaty changes that could block their use of common food names clients throughout Iowa, Wisconsin and vice president of research, development, erode established trademark rights and or negatively impact existing protec- northern Illinois. Bernius previously quality and innovation, will be leaving the impair the ability of companies around tions for their established trademarks.” worked for elementar Americas, a labora- company, though he will remain until a the world to use numerous generic The proper protocol must be main- tory instrument manufacturer, and has a successor is named. cheese names in export markets. tained to ensure the continued growth background in marketing, communica- Saputo Inc. recently announced In a bipartisan letter to the World of U.S. dairy exports, says Connie Tipton, tions, sales and account management. that Lorenzo Spinelli will be stepping Intellectual Property Organization president and CEO of the International The Grocery Manufacturers As- down as president and chief operating (WIPO), Chairman Orrin Hatch, R-Utah; Dairy Foods Association. sociation (GMA) has hired Jennifer offi cer, Dairy Division (Canada), and Ranking Member Ron Wyden, D-Ore.; “Unless these meetings are opened Cleveland McEntire as vice president Carl Colizza will be promoted to this Chairman Paul Ryan, R-Wis.; Ranking to the larger WIPO membership, the of science operations. McEntire, who position. Colizza currently is serving as Member Sandy Levin, D-Mich.; Chair- amendments completed by 30 or so will begin her duties at GMA on March senior vide president, strategic business man Chuck Grassley, R-Iowa; Ranking countries could adversely affect the 3, previously was vice president and chief development, Dairy Division (Canada). Member Patrick Leahy, D-Vt.; Chairman rights of all WIPO members to use science offi cer at The Acheson Group. He has been with the company since 1998 Bob Goodlatte, R-Va.; and Ranking common food names in global trade,” Before that she served as senior staff and has held several senior management Member John Conyers, D-Mich say the Tipton says. scientist and director of science and positions in operations. views of the United States and other Jim Mulhern, president and CEO of technology projects at the Institute of Sargento Foods Inc. has announced member countries are not being fully the National Milk Producers Federation, Food Technologists. that Wade Zoroya has been promoted to considered as WIPO looks at expanding says the proposed changes in the Lisbon Kraft Foods Group Inc. recently national account sales manager as part the scope of the Lisbon Agreement for Agreement are clearly aimed at prevent- announced management changes. of the Kroger sales team, and Ryan Lane the Protection of Appellations of Origin. ing U.S. dairy producers and processors, George Zoghbi, current vice chairman, has accepted the position of regional The eight congressional leaders and others, from using names such as operations, R&D, sales and strategy, merchandising manager in the Sargento strongly urge WIPO to follow past feta, parmesan, havarti and asiago in has been named chief operating offi cer. Foods sales department. In his new role, practice by allowing all WIPO member international trade. Zoghbi will oversee the company’s U.S. Zoroya will drive the execution of the countries to have an equal voice in The WIPO is scheduled to consider business units and the teams that drive Kroger joint business plan for western determining any changes to the Lisbon the expansion to the Lisbon Agreement growth across Kraft, including sales and Kroger divisions. He also will focus on Agreement. at a meeting in Geneva, Switzerland, marketing services. He will continue to category and brand development to The letter points out the broad in mid-May. Work to prepare for that lead Kraft’s integrated supply chain, achieve objectives for both Sargento ramifi cations of an agreement that fails meeting is actively underway in Geneva. working closely across all operations to Foods and Kroger. Wade joined Sargento to suffi ciently address the concerns of “Of course countries can strike trea- make appropriate investment decisions, Foods in September 2013 as customer trademark holders and common name ties to address their own goals, but that drive productivity and execute the com- business manager. He will relocate to users. should not be allowed to come at the ex- pany’s innovation and brand marketing Southern California from Kansas City, “Without these safeguards, compa- pense of others’ long-standing and grow- plans. The company also announced that Mo., for his new role. Lane also will be nies in the United States and elsewhere ing exports,”says Tom Suber, president Chris Kempczinski, who currently leads based in Southern California and will could see their sales opportunities and of the U.S. Dairy Export Council. CMN Kraft’s Canada business unit, will assume be responsible for retail merchandising. an expanded role as executive vice presi- He will identify opportunities among dent of growth initiatives and president key markets and customers in this role Sysco agrees to sell 11 US Foods facilities of international. In this newly created supporting consumer products division role, he will work closely with Zoghbi sales managers, the director of retail HOUSTON — Sysco Corp. last week Foods facilities at the completion of the to formulate strategy and develop and merchandising and directors of retail announced it has reached a defi nitive US Foods transaction: Corona, Calif.; Den- deploy innovation platforms for Kraft’s sales. Before joining Sargento Foods, agreement to sell 11 US Foods facilities ver; Kansas City, Kan.; Phoenix; Salt Lake sustainable growth. He will continue Lane was an account manager at Hilti to Performance Food Group, related to City; San Diego; San Francisco; Seattle; to lead Kraft Canada and will oversee North America in Los Angeles. CMN Sysco’s pending merger with US Foods. Cleveland; Las Vegas; and Minneapolis. The divestiture package is contingent on In US Foods’ most recent fi scal year, consummation of the proposed merger these distribution centers generated of Sysco and US Foods announced in $4.6 billion in annual revenue. Sysco December 2013. notes it also has come to a compre- Sysco now will present its position, hensive multi-year transition services including this proposed remedy, to the agreement with Performance Food fi ve Federal Trace Commission (FTC) Group to ensure a smooth transfer of What’s next in your career? commissioners and seek to obtain their assets and provide various support Spend a year with us. We’ll help you reach your potential! approval. services and personnel to help Perfor- “Over the past 12 months, we have mance Food Group succeed as the new worked in good faith with the FTC to business owner in these locations. Cal Poly’s Master of Professional Studies in Dairy Products Technology is a one-year help them better understand the highly “The collection of distribution cen- graduate degree program designed to train students for management-level careers competitive U.S. foodservice distribution ters and other assets that Performance in the dairy processing industry. We welcome: industry and the signifi cant customer Food Group will acquire along with • Recent graduates with science and engineering degrees benefi ts that will result from the merger related support services agreements • Seasoned employees seeking career changes or advancement of Sysco and US Foods,” says Bill DeL- will enable us to compete effectively • Military officers ready for civilian employment aney, president and CEO, Sysco. “Unfor- for national broadline foodservice • Great Salary Potential • Strong Industry Contacts tunately, the FTC has taken a different customers,” says George Holm, CEO and • Dairy or Food Experienced Not Required view of the potential competitive impacts president, Performance Food Group. of the merger. While we respectfully but “We are excited by the opportunities Now accepting applications for Fall 2015. Visit mpsdairy.calpoly.edu for more vigorously disagree with the FTC’s analy- for growth presented by this transaction information, or call MPS Program Manager Tom Johnson at 805-756-6148 sis, we believe this divestiture package and are confi dent that we will effectively fully addresses its concerns.” execute our plans to become one of the Under the agreement, Sysco will sell country’s premier broadline distributors For more information please visit http://mpsdairy.calpoly.edu Performance Food Group the following US serving customers coast to coast.” CMN © 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) February 13, 2015 — CHEESE MARKET NEWS® 7 CHEESE MARKET NEWS® Retail WATC H NEWS & MARKETING IDEAS TO HELP SELL MORE CHEESE Great Lakes Cheese launches organic cheese for store brand customers

By Kate Sander Fancy Shred, 6-ounce Mozzarella Fancy Shred and 6-ounce Mild Cheddar Fancy HIRAM, Ohio — Great Lakes Cheese Shred. Co. Inc., a leading private label manu- “This is just the beginning of our facturer, will enter the organic cheese interest in organic cheese and what we business next month with nine organic can offer our customers,” Schechter- cheese products for private label cus- man says. tomers. Up until the last 3-4 years, much of “Private label organic cheese is a the organic cheese available was sold growth area for our retail customers,” in specialty supermarkets. With Great A NEW LINE OF CHEESE — This next month, Great Lakes Cheese will roll out its fi rst organic says Lisa Schechterman, product mar- Lakes Cheese offering organic products cheese products for private label. For customers who might not already have their own private keting manager, Great Lakes Cheese Co. to its customers, it makes organic prod- label brand for organic products, Great Lakes is offering the Thoughtful Organics brand. Sales of organic cheese are grow- ucts even more accessible to consumers, ing annually at a rate of 30 percent, says John Epprecht, vice president, Epprecht says. proud of: Great Lakes Cheese’s highly- Schechterman notes, and while the co-manufacturing, Great Lakes Cheese. To that end, Great Lakes Cheese successful cracker-cuts. Introduced overall category is still quite small, that The company, which operates eight continues to develop products that help a little more than four years ago, the kind of growth potential is signifi cant. plants nationwide and is about to open retailers compete for market share. line features small cheese slices, just a ninth, is outsourcing the production of The company is now offering shredded the right size for a cracker, in rigid, the cheese to a certifi ed organic facility cheeses in 8-ounce and 16-ounce stand- recloseable containers. Consumers but has gained its own certifi cations up pouches, pouches that have become can grab a few slices for a snack or from the Midwest Organic Services As- increasingly popular in the industry serve it right on the tray for easy “This is just the sociation for packaging and converting since fi rst introduced in 2013. Stand- entertaining. the cheese. Epprecht says Great Lakes beginning of our interest up pouches in 1 1/2-pound and 3-pound In 2015, customers can expect to see Cheese has positioned its organic supply sizes, ideal for club stores, are “coming more specialty cheese types in this line, in organic cheese chain for healthy growth in the future. soon,” Schechterman adds. Epprecht says. This year, there also will For retail customers who have already and what we can offer Great Lakes Cheese has expanded be 30-ounce entertainment packages been offering consumers private label its crumble options, too, expanding its offered in club stores that feature three our customers.” organic products, including milk, yogurt core crumble program to six cheeses, varieties of 10 ounces of cracker cuts in and cream cheese, organic cheese is a including reduced-fat Blue and reduced- a retail ready box. Lisa Schechterman natural line extension. For other custom- fat Feta. The company also has plans to The company also is adding to its ers who might not already have their own GREAT LAKES CHEESE CO. INC. begin offering goat cheese crumbles. party tray program with two different private label brand for organic products, meat options — one featuring beef Great Lakes is offering the Thoughtful coins and cheese and one featuring Organics brand. turkey bites and cheese. These are in “Some customers are already com- addition to the company’s ready-to-serve Adding organic cheese is important mitted to organic in other areas, and “Our commitment 16-ounce party trays. Available cheeses to Great Lakes Cheese so the company they won’t need the Thoughtful Organics to customers will include “premium” cheeses such as can help its retail customers compete brand. But for some, this will be a new Havarti, Gouda and aged Cheddar. as consumer interest zeros in on fresh opportunity,” Schechterman says. is to advise them In addition, Great Lakes Cheese con- and natural products. Great Lakes The decision to offer organic cheese is on trends, and tinues to offer private label customers Cheese must step up to help its retail the result of Great Lakes Cheese’s retail “skinny” cheese slices, a product style customers not only protect their core on what’s viable and customers’ focus on growing their private that was introduced by branded com- private label cheese business but also label business. As Great Lakes Cheese’s what’s not.” panies and has proved popular among to grow their share of the cheese case, customers began to push to differentiate calorie-conscious consumers. Schechterman says. and grow their store brands, Great Lakes Innovation also continues to come “It’s a small niche market, but the John Epprecht Cheese made a commitment to provide in the form of new fl avors. time is now,” Schechterman says, adding GREAT LAKES CHEESE CO. INC. its customers with a relevant product “Flavor innovation continues to be that consumers — particularly Millen- portfolio, including “me-too” items and driven by the marketplace. Customers nials — are demanding more in terms completely new-to-the-market products. always want to know what’s next,” Ep- of organic products. “It really started with customers precht says. Beginning in March, the company Great Lakes Cheese is debuting a coming and asking us for new innovative In the past couple of years, Great will offer nine organic SKUs. Mild Ched- sleeved offering of two 4-6 ounce con- ideas,” Epprecht says. Lakes Cheese has worked on further dar, Mozzarella and Colby Jack will be tainers of crumbled, shredded or shaved Once known as “generic” products developing cheeses with strong fl avor available in 6-ounce bars. In slices, the cheese. The Italian combo features that lacked innovation, what the industry profi les such as horseradish Cheddar company initially will offer 6-ounce shredded Parmesan and shaved Asiago. still calls “private label” has signifi cantly and habañero Cheddar. In addition, packages of Colby Jack, Mild Cheddar The Salad combo will feature crumbled changed, Epprecht continues. Custom- several fl avors are under review at and Provolone. Additionally, there will Blue and crumbled Gorgonzola. ers now want to innovate. this time. be three shredded products in stand-up “It isn’t private label anymore. It’s One of the areas of greatest innova- pouches — 6-ounce 3 Cheese Mexican their private brand, their store brand,” tion is a line Epprecht is particularly Turn to GREAT LAKES, page 9 D

Also in Retail WATCH: Tillamook releases Really Thin Slices … Page 8 Yoplait cups styled by fashion designer … Page 10

© 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 8 CHEESE MARKET NEWS® — February 13, 2015 RETAIL ROUND-UP Fairlife launches cold-fi ltered milk nationwide through Coca-Cola’s Minute Maid Division CHICAGO — Health and wellness start- the fl agship Fair Oaks Farms dairy in very excited to be taking a superfood one of the family-owned dairy farms up Fairlife LLC is offi cially launching Indiana. and making it even better, with more that make up Select Milk Producers Fairlife ultrafi ltered milk in dairy cases Fairlife’s tagline “believe in better,” goodness than ever.” believes that producing a better milk across the country. echoes Select Milk Producers’ practice Sue McCloskey, who co-founded can only be accomplished by doing it Fairlife is high-quality milk that is of better farming everyday to better care Fairlife with Mike, notes that as dairy in a better way. Fairlife is fully trace- cold-fi ltered for 50 percent more protein, for its cows for better nutrition to make farmers and parents of four, the Mc- able back to the dairies the milk comes 30 percent more calcium and half the a high-quality milk. Closkeys believe their milk could and from, providing unparalleled safety sugar of regular milk. “Fairlife is a transformational innova- should be better. reassurance. The key to the ultrafi ltered milk is tion that retains the purity of real milk “With Fairlife, we’re bringing families Fairlife ultrafi ltered milk is rolling Fairlife’s patented cold fi ltration that yet signifi cantly improves its health ben- everywhere great tasting, convenient, out nationwide now through distribu- enhances its natural nutrition without efi ts and taste,” says Mike McCloskey, a high-quality, simple nutrition from real tion by The Coca-Cola Co.’s Minute Maid the use of protein or calcium additives. former veterinarian, active dairy farmer food,” she says. Division. The product is available in Fairlife uses high-quality milk provided and CEO of Select Milk Producers. “Our Not only will people feel better fat-free, reduced fat (2 percent), whole by its founding company Select Milk patented fi ltration concentrates the best drinking Fairlife because of its su- and chocolate reduced fat (2 percent) Producers, a dairy cooperative based in of milk’s natural nutrients, like protein perior nutrition, but they can feel varieties. Fair Oaks, Ind. With a few other families, and calcium, while fi ltering out the lac- better about how it’s produced, too, For more information, owners Mike and Sue McCloskey own tose and reducing the sugars — we’re the McCloskeys say, noting that every visit www.fairlife.com. CMN Unilever changing ingredients used in its buttery spreads to align with sustainability plan ENGLEWOOD CLIFFS, N.J. — Unilever transformation that will help us grow spread from Unilever in the United ver’s spreads portfolio by 2017. Unilever USA is transforming its current buttery the buttery spreads business. It is also States to be made with non-GMO sourced currently sources all of its soybeans from spreads portfolio, beginning with I Can’t consistent with the types of innovation ingredients. Like all Unilever buttery the United States. Believe It’s Not Butter!, into new recipes you can continue to expect from our spreads, sticks and sprays, the new • A newly renovated facility in New made with ingredients like plant-based Unilever foods brands.” recipes do not contain any trans fat per Century, Kan., which currently sends oils and purifi ed water. In addition to the new I Can’t Believe serving, no cholesterol and no partially zero waste to landfi ll, with a commitment “This is a ground-breaking innova- It’s Not Butter! that launched last month, hydrogenated vegetable oils. to be 100 percent powered by renewable tion for Unilever’s USA Foods divi- the transformation will continue across Unilever’s portfolio transformation energy by 2020. sion, driven by our mission to deliver other Unilever buttery spreads brands, was driven by its Unilever Sustainable • Redesigned packaging, resulting great-tasting and sustainable food to including Country Crock, Brummel & Living Plan (USLP) — the company’s in a new, rectangular shape that is America,” says Mike Faherty, vice presi- Brown and Imperial in 2015. blueprint for sustainable business. The more space-effi cient in the refrigerator, dent, Unilever Foods North America. The new I Can’t Believe It’s Not company says its USLP efforts have dishwasher safe (top rack only), reusable “The new I Can’t Believe It’s Not But- Butter! is available in Original, Light brought enhancements to sustainable and recyclable. Following the portfolio ter! is the start of a complete category and Olive Oil varieties, and is the fi rst business principles and goals for the transformation, the redesign will elimi- coming years, including: nate about 552,000 pounds of plastic from • A sustainable sourcing strategy, the waste stream per year, Unilever says. specifi cally to sustainably source 100 For more information visit www. percent of the soybean oil across Unile- icantbelieveitsnotbutter.com. CMN Tillamook releases new Really Thin Slices

Quality TILLAMOOK, Ore. — Tillamook County excited to deliver the taste, texture and Creamery Association recently released quality of Tillamook Cheese in this more You Can Trust. Really Thin Slices, delivering all the fl a- convenient cut.” vor and about half the calories of their Tillamook Really Thin Slices are cur- Innovation Deli Sliced cheese. rently available for national distribution You Can Taste. Tillamook best-selling sliced cheese in a shingle pack and will be found at varieties — Medium Cheddar, Sharp major retailers in the West beginning Celebrating Successful Cheddar, Pepper Jack and Swiss — are this spring. Partnerships for 60 Years! now available in a thinner slice, allowing In addition to introducing this Introducing our consumers to enjoy natural cheese with new product, Tillamook also is adding Newly Expanded about 45 calories per slice. Smoked Provolone Slices to its line up Tillamook says Really Thin Slices of natural cheese offerings. These slices Glacier Ridge FarmsTM Line: were created for everyday enjoyment, are smoked naturally with hickory for • Handcrafted In America’s Dairyland • Naturally Smoked Cheeses providing portion-controlled conve- six hours to achieve rich fl avor and • Gourmet Spreadable Cheeses & Dips nience for health-focused shoppers. aroma. This naturally Smoked Provolone • Smokey Bars/Snack Wedges “We always strive to provide solu- replaces Tillamook Provolone Slices. • Variety of Flavors tions to our customers’ needs and New Smoked Provolone Slices can be FOODSERVICE are pleased to now offer a product found in 8-ounce and 2-pound Deli and In Perfect Shape For a Growing Industry for cheese lovers who are looking for 12-ounce Thick Slice packs in cheese ■ Creative blend of vision and flexibility ■ Unique product offerings another portion size option,” says Joe cases at major retailers across the West. ■ Naturally smoked cheeses tailored to fit every Prewett, director of product manage- For more information, visit SQF Level 3 Certified packaging configuration This certification ensures our customers that our cheese products ■ Extensive single serving/portion-controlled sizes ment and innovation, Tillamook. “We’re www.Tillamook.com. CMN have been produced and handled in accordance with the highest standards PRIVATE LABEL set by the Food Marketing Institute (FMI). Build Your Brand With Quality You Can Trust ■ Expansive array of custom formulations Horizon Organic introduces Cheese Shapes ■ Innovative packaging solutions ■ Ability to drive new sales BROOMFIELD, Colo. — Horizon and contain approximately 110 calories, RETAIL HOUSE BRANDS Diversify Your Product Portfolio Organic brand has launched a new 9 grams of fat and 180 milligrams of With Our Proven Winners Cheese Shapes snacking lineup, which sodium per 1-ounce serving. ■ Unique flavor profiles is available in Cheddar and Colby According to Horizon Organic, its ■ Market versatility to maximize sales performance ■ Price competitiveness & in-store support varieties. Cheese Shapes are a good source of ■ Low minimum order quantities The Cheddar is shaped like stars and protein. The cheese snacks are sold Call us today for details: fl owers, while the Colby comes in square exclusively through Target stores in the 2819 County Road F • Blue Mounds, WI 53517 and triangle shapes. United States. Ph: (608) 437-5598 • Fax: (608) 437-8850 [email protected] • www.dairyfoodusa.com Both cheeses in Horizon Dairy’s new For more information visit snacking line are sold in 5.5-ounce bags www.horizondairy.com. CMN For more information please visit www.dairyfoodusa.com © 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) RETAILING PERSPECTIVES February 13, 2015 — CHEESE MARKET NEWS® 9

NPD: Snack foods GREAT LAKES eaten at main Continued from page 7 meals will grow “Our commitment to customers is to CHICAGO — U.S. consumers are eat- advise them on new trends, and on what’s ing traditional snack foods, particularly viable and what’s not,” Epprecht says. snacks with a perceived health benefi t, “Flavor innovation is always relevant.” in between and at meals, which will drive All of this innovation and growth has the growth of snack foods eaten at main necessitated more manufacturing and meals over the next fi ve years, according converting capacity. To keep up, Great to global information company The NPD Lakes Cheese is on the cusp of open- Group. ing its fi rst Southeast manufacturing A recent NPD food and beverage mar- facility in Manchester, Tenn. The new ket research study forecast shows that 330,000-square-foot manufacturing fa- snack foods eaten at main meals will grow cility in the Manchester Industrial Park approximately 5 percent over the next fi ve will be the company’s fourth “super” Photo courtesy of Great Lakes Cheese years, or to 86.4 billion eatings in 2018. plant. The company also has facilities in The strongest growth of snack foods CONTINUALLY INNOVATING — Great Lakes Cheese’s highly-successful cracker-cuts Hiram, Ohio; Fillmore, Utah; Plymouth, line features small cheese slices, just the right size for a cracker, in rigid, recloseable eaten at meals will be in the better-for-you La Crosse, Wausau and Seymour, Wis.; containers. Consumers can grab a few slices for a snack or serve it right on the tray for categories, such as refrigerated yogurt, and Adams and Cuba, N.Y. CMN easy entertaining. bars and fresh fruit, which consumers perceive as more healthful and convenient and are more prone to eating between and at meals, according to NPD’s “The Future of Eating: Who’s Eating What in 2018?” report. NPD adds that ready-to- eat sweetened snack foods and desserts, which consumers are less likely to eat at main meals, will be fl at in the next fi ve years. “The growth in better-for-you snack foods in between and at meals is a good example of how consumers are redefi ning the foods they eat, and how the traditional lines between snack foods and main meal foods are blurring,” says Darren Seifer, NPD food and beverage industry analyst. “Consumers clearly associate certain times of day with main meals and between meal occasions, but what they are eating at those occasions is changing.” Millennials (ages 24-37), Generation X (ages 38-48) and Generation Z (ages 0-23) are driving much of the growth in better- for-you snack consumption between and at meals, NPD says. Their positive attitudes about snacking, desire to eat more health- fully and need for convenience are among the reasons for the growth in this category. “Food marketers and retailers can capitalize on the growing interest in better-for-you snack foods, but it may require a paradigm shift,” Seifer says. “It’s key is to focus on providing convenience and addressing the needs that these foods meet rather than positioning foods in the pre-defi ned buckets of snacks or main meal foods.” For more information, vis- it www.npd.com. CMN Dannon adds new chocolate, caramel varieties to Oikos PARIS — Oikos Chocolate On Top and Oikos Caramel on Top are new additions to Dannon Co.’s Greek yogurt line. The chocolate varieties include Raspberry Truffl e and Chocolate-Covered Strawberry, and the caramel options are Bananas Foster and Caramel Macchiato. Each single-serve container is 5.3 ounces and offers 10 grams of protein, 210 calories and 4.5 grams of milkfat. For more information visit www.oikosyogurt.com. CMN For more information please visit www.greatlakescheese.com © 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 10 CHEESE MARKET NEWS® — February 13, 2015 THE CHEESE TABLE Yoplait debuts signature yogurt collection styled by fashion designer Christopher Straub

MINNEAPOLIS — Yoplait is introduc- into statement pieces. I wanted to fi nd a lot like choosing an outfi t — you plait is taking its Signature Collection to ing its Yoplait Signature Collection, a the personality in each fl avor and bring select each based on your mood, plans Mercedes-Benz Fashion Week at Lincoln series of specially-designed cups styled it front and center.” for the day and current inspiration,” Center in New York today. An exclusive by fashion designer Christopher Straub. The Yoplait Signature Collection says Andrew Lainsbury, Yoplait shop- event will showcase the cup designs The limited-edition cup designs are a way includes Strawberry, Harvest Peach and per marketing manager. “Both can alongside the dresses and sketches that to celebrate the fl avors of Yoplait Original Orange Creme from Yoplait’s Original help you look and feel confi dent inside inspired them, as well as two custom and Yoplait Light, the company says. line and Blueberry Patch, Key Lime and out. We hope to give Yoplait lovers gowns created by Straub using Yoplait “Yoplait’s palette of colors and fl avors Pie and Strawberries ‘n Bananas from a fashion-forward experience through cups and lids. Yogurt-loving consumers really inspired me for this project,” Yoplait’s Light line. It is available exclu- this collection and are thrilled to be everywhere can join the celebration via Straub says. “For me, fashion is more sively at U.S. Target stores nationwide working with Christopher Straub to social media using #YoplaitStyle. than designing clothing — it’s about through this month. share with consumers.” For more information, vis- translating real-life textures and lines “Choosing a snack or meal can be To celebrate the collaboration, Yo- it Yoplait.com/Target. CMN CowParade by got milk? coming to California this year; art auction to benefi t education SAN CLEMENTE, Calif. — The got public art exhibition, got milk? — cre- The got milk? CowParade will aim message to families.” milk? CowParade is coming to California ated by the California Milk Processor to have large art installations in Sacra- CowParade is an art installation con- in September 2015. Board (CMPB) — is partnering with mento, San Francisco, San Jose, Fresno, sisting of variously designed and painted CowParade has been staged in 80 educational non-profits, including Bakersfi eld, Los Angeles, Palm Springs full-sized cows hosted by sponsors for a cities worldwide. The event will feature THINK Together and STAR Education, and San Diego. National and internation- duration of 2-4 months. CowParade has life-size fi berglass cow art exhibits in among others. At the end of the exhibit ally renowned artists and local talent, as been staging art exhibits worldwide select cities throughout California, pro- period, the art pieces will be auctioned well as celebrity supporters, are being since 1999. moting art, education and celebrating and a portion of the proceeds will benefi t invited to participate in the exhibitions. The cow sculptures, mounted on the California dairy industry. the organizations. “As a father I place a high value on a 300 pound cement display base, are “The got milk? CowParade is a fun, “We’re proud to present the opportu- education, which is a key objective of the made of fi berglass with steel rebar entertaining and whimsical art exhibit nity for California cities and companies got milk? CowParade,” says actor Jaleel reinforcement. that highlights education and Califor- to join the celebration and participate in White. “I’m happy to be a part of this For more information visit www. nia’s thriving dairy industry,” says State this historic art exhibition,” says Steve program and help bring this important gotmilkcowparade.com. CMN Superintendent of Public Instruction James, executive director, CMPB. “We’re Tom Torlakson. “At the same time it going to promote education, art and our Arthur Schuman introduces Cello Whisps generates funds for educational groups important dairy industry through this that do important work for our students.” fun and creative installation that will snack made with Copper Kettle Parmesan As part of the got milk? CowParade be uniquely California.” TURTLE LAKE, Wis. — Arthur Schuman Whisps, the company says. Inc. has launched Cello Whisps, new The Parmesan is baked into an airy, baked, bite-sized snacks made from the crispy bite-sized snack for a source of pro- company’s award-winning Copper Kettle tein and calcium with just 100 calories per Our Expertise in World Dairy Parmesan. serving. Cello Whisps are also gluten-free. Markets Makes MCT Your Global Arthur Schuman’s Cello Riserva line Company offi cials says whisps are to of specialty cheeses includes the award- be enjoyed as is or can be added to a soup Partner for Successful Results winning Copper Kettle Parmesan, hand- or salad, or used as a pizza or sandwich 3/52#).'!.$,/')34)# crafted in authentic copper kettles at the topping. The product has a shelf life of 3%26)#%3 company’s Lake Country Dairy plant in nine months and comes in 2.12-ounce Turtle Lake, Wis. Each wheel is aged for multi-serving bags. Could you use assistance in a minimum of 14 months and individually For more information, vis- managing your supply chain? selected at the peak of its fl avor for Cello it www.cellowhisps.com. CMN

30%#)!,):%$&/2-5,!4)/.3 We have expanded our team to bring you unprecedented expertise and knowledge in today’s complex Wausome Foods launches cheese crisps world markets. WAUSAU, Wis. — Wausome Foods, a Wausome says its crisps pair well with s3OURCINGAND,OGISTIC3ERVICES specialty foods company headquartered wine, beer, fresh fruit and chocolate. ,%!$).'3).',%3/52#% s3PECIALIZED&ORMULATIONS in Wausau, Wis., has announced the While initially available in two fl avors, $!)293500,)%2 release of its Wausome Wafers cheese Wausome Foods expects to expand the s,EADING3INGLE3OURCE$AIRY3UPPLIER crisps in two fl avors: Clever Cheddar specialty product line to include other s!GING0ROGRAMS and Hug & Kiss Colby/Swiss. signature fl avors such as Soupa Gouda, s(EDGING3ERVICES Made from Wisconsin cheeses, Wau- Bliss Swiss and Party Havarti. some Wafers cheese crisps have a 9-month The Wausome Wafers are available 5.0!2!,,%,%$3%26)#%3 s5NPARALLELED3ERVICES shelf-life and do not need to be refrigerated. in 6-count gift packs and 24-count s%XPERTISEINTHE'LOBAL$AIRY-ARKET The cheese crisps are gluten-free, sugar- cases. The wafers come in 2.1-ounce s%XPORT3ERVICES free and low-carb; the cheese crisps also packages. For more information visit are rich in calcium and high in protein. store.wausome.com. CMN

%80%24)3%).4(%',/"!, MCT Dairies is the leading $!)29-!2+%4 supplier of cheese and TruMoo offers Chocolate Marshmallow milk dairy ingredients, offering innovative solutions DALLAS — For the second straight year, president of marketing, Dean Foods. throughout the world. Dean Foods’ TruMoo has released its Lowfat TruMoo contains 140 calo- Limited Edition Chocolate Marshmallow ries per serving, 30 more calories than milk nationwide. The company says this lowfat white milk. TruMoo Chocolate popular fl avor can be served cold or heated Marshmallow milk can be found in the up for a hot chocolate without the hassle. refrigerated dairy section at major retail- “Not only is Limited Edition TruMoo ers nationwide through the end of this Chocolate Marshmallow nutritious and month. TruMoo chocolate, strawberry delicious, its versatility ensures that no and protein milk varieties will continue 0HONE OR matter how you like to drink it — hot to be available year round. %MAIL INFO MCTDAIRIESCOM 7EB WWWMCTDAIRIESCOM or cold — it’s the perfect beverage to For more information, visit www. make winter’s plummeting temperatures TruMoo.com and www.facebook. more enjoyable,” says Greg Schwarz, vice com/TruMooMilk. CMN For more information please visit www.mctdairies.com © 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) February 13, 2015 — CHEESE MARKET NEWS® 11 NEWS/BUSINESS

EPA withdraws water guidance following objections raised by National Milk Producers

WASHINGTON — The National Milk withdrawn because it could have actu- “We’re pleased the EPA and Army thrust into the role of enforcer, rather Producers Federation (NMPF) says that ally discouraged water conservation have recognized that this regulation than remaining a source from which as the result of objections raised by the and environmental best practices, the could have backfi red and that they’ve farmers could seek conservation advice. organization, the U.S. Environmental organization says. taken the necessary step to withdraw This could have hindered rather than Protection Agency (EPA) has withdrawn “Our concern with the initial pro- it,” Jonker says. helped conservation efforts,” Jonker a regulatory guidance issued last year posal from last year is that it could The EPA guidance, offi cially called says. concerning when farmers must seek have altered the long-standing and an Interpretive Rule, was issued in He notes that NMPF has drawn up Clean Water Act permits for a long list of productive relationship between farm- March 2014. It said farmers are only a detailed environmental handbook normal farming activities near wetlands. ers and the USDA’s Natural Resources exempt from needing Clean Water Act based on NRCS standards but tailored EPA and USDA recently signed Conservation Service (NRCS) in a way permits for more than 50 routine farming specifi cally to dairy farmers. Those who a memorandum withdrawing the that would have made it harder for practices if they comply with detailed followed the guidelines in the book ap- “Interpretive Rule Regarding the Ap- farmers to implement water conserva- NRCS technical conservation standards. parently would not have qualifi ed for plicability of Clean Water Act Section tion measures,” says Jamie Jonker, Historically, these standards have been a permit exemption, “challenging the 404(f)(1)(A).” NMPF last summer had vice president for sustainability and voluntary, and the farming practices very notion of why the handbook was requested that the interpretive rule be scientifi c affairs, NMPF. exempt from the permit process. created in the fi rst place.” In comments fi led last July, NMPF The now-withdrawn interpretive rule said the guidance changes NRCS’s role was intended to be part of the larger Wa- EVENTS from that of a conservation partner to ters of the U.S. proposal issued last year that of an enforcer of the Clean Water by EPA. The larger proposal is still under Act, on EPA’s behalf. review by both EPA and the Army Corps Public invited to champion cheese event Had the interpretive rule not been of Engineers, and also is being scruti- withdrawn, “the NRCS would have been nized by Congress, NMPF notes. CMN MILWAUKEE — The public is invited to U.S. Champion Cheese. taste some of the nation’s best cheeses Steve Palec, a Milwaukee radio veteran WUD leaders program accepting applications and watch the fi nal round of the U.S. who has been the host of Rock And Roll Championship Cheese Contest next Roots on WKLH 96.5 Milwaukee for the MODESTO, Calif. — Applications will be covered in fi ve, multi-day ses- month at the Hyatt Regency Hotel in past 26 years, will serve as guest emcee are now available for Western United sions, including a trip to Washington downtown Milwaukee. for the evening. Dairymen’s (WUD) California Dairy D.C. to meet California legislators. The Champion Cheese Charity Event Attendees also will enjoy unique culi- Leaders Program. Introduced in 2002, The program is targeted toward dairy – A Benefi t for Hunger Task Force begins nary creations prepared especially for this the program was designed to develop producers and those in dairy-related at 5:30 p.m. Thursday, March 19. Tickets event from local chef Michael Feker from informed producers who will take lead- enterprises who want to assume lead- are $35 and are on sale now at http:// Il Mito. Feker will be on hand to discuss ership roles in the next generation of ership roles within the California dairy www.hungertaskforce.org/donate/us- how to use cheese in everyday recipes. the state’s dairy organizations. industry. Successful applicants will be championship-cheese-gala/. All ticket Cow, goat and sheep milk cheeses The leadership program consists of from various backgrounds, experiences proceeds will go directly to Hunger Task sampled will be entries from the contest. several sessions devoted to developing a and education levels. The one com- Force with the hosts guaranteeing a do- Cheese fans also can visit, free, the fi rst better understanding of the economic, monality among those accepted to the nation of at least $10,000 that evening. round of judging in the contest, March 17 legislative, marketing, and environmen- program will be a desire to improve the Cheese tasting, chef creations, appe- and 18 in Exhibit Hall A at the Wisconsin tal issues facing the industry. Topics California dairy industry. tizers and cash bar open at 5:30 p.m. and Center from 9:00 a.m. to 4:00 p.m. will include: environmental issues; the Applications are due March 31, the championship round of judging will For more information, visit www. state and federal legislative process; along with an enrollment fee and the begin at 6:30 p.m. Attendees will witness uschampioncheese.org/attend/ or con- dairy pricing and economics; biotech- requested letters of recommendation. the fi nal round of cheese judging as judges tact Jane Cisler at 608-828-4550 or nological developments; marketing and For more information visit www. determine and name the best-of-show 2015 [email protected]. CMN promotion; and public relations skill westernuniteddairymen.com or development. The program’s material contact 209-527-6453. CMN IDS adds Co-Packer Pavilion to show fl oor

CHICAGO — The International Dairy and beverage industry,” Moran says. Mark Your Calendars! April 14 – 17, 2015 Foods Association (IDFA), producer of The Co-Packer Pavilion is just one of the International Dairy Show, this week many enhancements the International announced the addition of a Co-Packer Dairy Show has made for the 2015 event, BASIC CHEESEMAKER’S LICENSE Pavilion on the 2015 show fl oor. The IDFA says. The show has expanded This four-day course is designed trade show is taking place Sept. 15-18, several exhibit fl oor activities, including for farmstead as well as apprentice 2015, in Chicago’s McCormick Place. increased on-fl oor education in iDairy cheesemakers from industry. This course is broken down into separate “From fl uid milk and yogurt to ice Show Theater and programming with segments. The lecture and exam take cream, cheese and sour cream, compa- a larger set and more seating; more place the first three days; and the production lab, if needed, is on the nies are looking for private label and on-floor food and beverage events; Advanced Registration is Required! co-packaging partners to allow them to expanded closing reception, awards fourth day. Completion of this course will give participant credit toward their Registration — See Website sell and market dairy products under presentations and pavilions; continued apprenticeship requirement for the Mail to: Dairy Processing Workshops their own brand name,” says Robin partnership with the Collegiate Dairy State Cheesemaker’s License. University of Wisconsin-River Falls 410 South 3rd Street Cornelison, IDFA trade show director. “In Products Evaluation Contest; and more Topics to be covered include: River Falls, WI 54022-5001 the Co-Packer Pavilion companies can networking lounges and meeting areas. • Basic Steps in Cheesemaking Process • Lab Sessions showcase their specialties from research The Co-Packer Pavilion will offer For Further Information, Contact: • Milk and Cheese Analysis and development, taste formulation, pro- both standard exhibit booth sales, as • Sensory Evaluation of Cheese Debra Cote cessing, specialty packaging and more.” well as turnkey exhibit space which • Regulations Academic Department Associate • Cleaning and Sanitation Phone: (715) 425-3704 Neil Moran, IDFA senior vice includes customizable booth packages Fax: (715) 425-3785 Sponsored by: president, notes that many of IDFA’s and upgraded exhibitor listings. Email: [email protected] University of Wisconsin-River Falls processor members offer co-packing Exhibit space sales for the 2015 www.uwrf.edu/ANFS/ Animal & Food Science Department DairyProcessingWorkshops/ and co-manufacturing capabilities, and International Dairy Show are ongoing. College of Agriculture, Food & IDFA wants to offer them an opportunity To reserve exhibit space within the Co- Environmental Sciences to showcase their services to the entire Packer Pavilion, contact International All forms; easy sign up; check us out today: industry. Dairy Show Sales Executive Katherine Check Us www.uwrf.edu/ANFS/DairyProcessingWorkshops/ “With the co-location of Process Madison at [email protected]. Out Online! Expo and InterBev Process, this truly For more information or to regis- will be a one-stop shop for the dairy food ter, visit www.dairyshow.com. CMN For more information please visit www.uwrf.edu/ANFS/DairyProcessingWorkshops © 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 12 CHEESE MARKET NEWS® — February 13, 2015 NEWS/BUSINESS

ORGANIC summer of 2014, OTA engaged in direct want to see promotion and research supports organic research as a benefi t outreach to organic certifi cate hold- programs that will provide consumer to producers as well. Continued from page 1 ers across the United States through education about the benefi ts of organic, “Research helps present farmers a direct mail brochure and postcards provide on-farm and regional research reach higher potentials and it also gives on an organic research and promotion with information on the emerging solutions for organic producers, and confi dence to potential organic farmers check-off program if the organic sector framework for an organic research and ultimately increase the number of to transition,” he says. “We need more submits an offi cial proposal. promotion order, as well as follow-up organic farmers. organic acres to help meet the demand The Organic Trade Association phone surveys. Clutts says as an organic dairy of consumers. Organic products need to (OTA) has been engaged in an extensive “While there are many specifi c farmer, he feels the ORPP could help be available so that they will continue to conversation with the organic commu- questions about the proposed check- most by providing research for organic purchase our products. Organic check- nity on such a program for more than off, we are fi nding that the more systems. off funds can help not only promote three years now, says Laura Batcha, information people get, the more “While we have some tools that allow growth at the retail level, but also pro- executive director and CEO, OTA. The supportive they are,” Batcha says. us to keep animals healthy, there are mote growth at the production level so association hosted six webinars and 20 “The feedback OTA has received from certain areas in agriculture that could that those of us that are grain buyers town hall meetings across the country organic stakeholders demonstrates an use help to make farmers more effi cient do not have to rely on imports to meet in 2012 and 2013. Three panel debates overwhelming consensus on the need and productive,” he says. “The money the demand.” were held in Vermont, Washington and for public education/promotion and spent on organic research is a frac- Organic dairy currently is the Wisconsin. Last March, OTA hosted a research to support organic food, fi ber tion of what is spent on conventional second-biggest category of organic panel at Natural Products Expo West and farming.” research.” foods sold, behind organic fruits and in Anaheim, Calif. In late spring and She says organic stakeholders While Clutts is supportive of an vegetables. For dairy products, Batcha organic checkoff, other producers have says an organic check-off program also expressed concerns based on their could help educate consumers. SANITARY PACKAGING SYSTEMS previous experiences with check-offs. “The main concerns of farmers that PERFORMANCE DERIVED FROM I hear is fund mismanagement,” Clutts “While there are many says. “This issue has come up in all Innovative Technologies for check-off discussions. That is why there specifi c questions Food Processing Equipment is a 15-percent cap on administration for about the proposed the life of the program. Some feel that if it is created, it will go on forever. That check-off, we are is why there is a mandatory referendum fi nding that the more at seven years to make sure that it is working as intended.” information people get, The Northeast Organic Dairy the more supportive Producers Alliance (NODPA), which represents 836 organic dairy farmers in they are.” the Eastern United States, supports the exemption of all organically certifi ed Laura Batcha operations from paying into federal ORGANIC TRADE ASSOCIATION mandatory check-off programs. It also is opposed to setting up an organic check-off. “A successful organic check-off “The nature of the existing com- program would clear up consumer mis- modity programs makes it impossible understanding about the various food for research and promotions to support labels in the grocery aisle and educate the unique needs of organic production consumers about the organic label on which is under 5 percent of total agri- organic dairy and cheese,” she says. cultural production,” say Liz Bawden, Batcha says the organic industry When searching for the latest technology and design know how for process NODPA board chair and New York needs to act collectively to ensure plant solutions, processors look to RELCO. Our range of those solutions organic dairy farmer, and Ed Maltby, its future because it can accomplish has broadened since RELCO teamed up with Technopak Limited of New NODPA executive director, in comments more collectively than individually. Zealand as The USA Distributor for their high speed automated Dry Powder submitted to USDA on the exemption She adds the structure of the check-off Packaging Systems. of organic products from check-off might be the same as other check-off programs. “Products produced under programs, but the assessment struc- z 25kg bagging at 1 - 10 bags per minute the USDA National Organic Program ture would differ. The assessment z Innovative and reliable hygienic seals require very specific research and would be more broad and shallow than z Accurate weight control marketing, a high percentage of which commodity check-off assessments, z Pre and post bag fill gassing options is done by farmers and handlers direct with all organic certifi cate holders z Design flexibility to meet the needs of any plant to consumers or by research on their throughout the supply chain paying z USDA and 3A sanitary design own farms.” into the program. z Modular design Earlier this month, The Cornucopia The OTA in December approved that z Small footprint Institute, a nonprofi t that supports it move ahead with the petition to USDA z Backed by RELCO’s process, installation and service integrity organic, sustainable and family farm- for an organic checkoff, acting on behalf ing, issued a news release criticizing of the organic industry. To keep up with the latest in process advancements, keep looking to RELCO. OTA’s efforts to develop and promote “OTA is continuing to actively seek an organic check-off. and collect feedback from organic “It’s a hard sell because profes- stakeholders on an organic check-off sional agriculturalists have plenty of program and is structuring a proposal to experience with mandatory check-offs submit to USDA for its review,” Batcha in other commodities where university says. “If USDA decides to move ahead research has illustrated that when there with the proposal, it will ultimately be INNOVATIVE PROCESS SOLUTIONS, ENGINEERED RIGHT has been any economic value at all it voted on by certifi ed organic stakehold- USA | The Netherlands | New Zealand | +1 320.231.2210 | www.relco.net has accrued to processors rather than ers. OTA will continue to engage and THE RELCO® ADVANTAGE farmers,” says Mark A. Kastel, senior educate organic stakeholders about farm policy analyst at The Cornucopia the check-off and how it would benefi t © COPYRIGHT 2015 Relco is a registered trademark and L-TECH is a trademark of RELCO, LLC. Institute. their individual operations and the For more information please visit www.relco.net Clutts, however, sees a check-off that organic industry as a whole.” CMN © 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) February 13, 2015 — CHEESE MARKET NEWS® 13 CLASSIFIED ADVERTISING

• EQUIPMENT 1 • EQUIPMENT 1

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© 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 14 CHEESE MARKET NEWS® — February 13, 2015 NEWS/BUSINESS

FMMO worked well for many years but has says. “Given the mounting losses that potential California FMMO. refused to make the changes needed dairy producers continue to suffer due USDA requests that additional Continued from page 1 to provide a fair price for the milk to the failure of our state system to proposals be submitted electronically you produce,” Vandenheuvel says in pay a fair price, now is the time for to AMS Dairy Programs at amsdairy- to promulgate a California FMMO his weekly MPC member newsletter. California to join the FMMO system [email protected], or mail to while retaining the California state “Producers will never get the $1.66 so our prices are brought in line with Deputy Administrator, USDA/AMS/ quota program. billion back we have lost due to the prices paid around the country.” Dairy Programs, STOP 0231, Room “That congressional reauthoriza- California discount, but this week However, David Ahlem chief oper- 2971, 1400 Independence Ave., S.W., tion makes clear that a California marks the fi rst step toward an alterna- ating offi cer for Hilmar Cheese Co., Washington, DC 20250-0225. Propos- FMMO will have all the benefits tive that can fi nally put an end to it.” cautioned that creating a FMMO in als must be received by April 10, 2015. and characteristics of the 10 FM- Western United Dairymen (WUD) California does not guarantee higher USDA says submissions should MOs, while maintaining the unique says that, in the spirit of cooperation payouts for producers. describe the disorderly marketing California system of sharing milk and the belief that the California “The long and costly process will conditions the proposal is intended sales revenues through the state quota dairy industry is much more effective only perpetuate the regulatory uncer- to address and should explain how program,” the proposal says. “The when united, WUD is moving forward tainty that has plagued California for the proposal would help establish and cooperatives’ dairy farmers members in support of thoughtful discussion the past several years,” Ahlem says. maintain orderly marketing condi- have carefully studied the operations to improve the milk pricing system. “Efforts should be focused on reforms tions and be in the public interest. and impacts of an FMMO and have “It’s not an easy fi x by any means, that incentivize investment and Information about current indus- concluded that a California FMMO is but our team is working closely with value creation. Regulated milk pricing try practices and the anticipated ef- imperative in order for them to have other industry partners to take the right schemes only distract from real value fect of the proposal on dairy farmers, an opportunity to achieve returns that steps while also continuing to work on creation and delay market-oriented handlers and consumers should be are on parity with those of other dairy state pricing in the mean time,” says investments that are needed to in- included, USDA adds. This informa- farm enterprises in the country.” Tom Barcellos, president, WUD. crease dairy producers’ milk prices tion will be evaluated to determine • Industry reaction Following the announcement, Joe and keep California’s dairy industry if the proposal should be considered Several producer groups were Augusto, president, California Dairy competitive in the future.” at a hearing. cautiously optimistic following the Campaign (CDC), commended the Rachel Kaldor, executive director Proposals amending existing FM- announcement of the proposal sub- three cooperatives for introducing of the Dairy Institute of California, MOs will not be accepted in conjunc- mission and hearing request. the proposal. says that while the Dairy Institute tion with this invitation, USDA notes. Rob Vandenheuvel, general man- “We commend CDI, DFA and Land does not have an offi cial position on Following an internal analysis of ager of the Milk Producers Council O’Lakes for working together to in- the proposal, the institute and its the proposals received, USDA will (MPC), notes that assuming USDA troduce a federal order proposal that members expect to be active par- decide whether a hearing will be held. does schedule a hearing on the issue, it will restore equity to dairy producer ticipants in the process as it moves USDA says it plans to conduct a will be a lengthy process that includes pricing in California,” Augusto says. forward. series of public outreach meetings many days or weeks of hearings and Augusto notes that more than 500 “Even while this multi-year process throughout California in early May. won’t likely conclude until sometime dairies have gone out of business since unfolds, we remain hopeful that Cali- Information regarding these meetings in 2016. 2007, amounting to a more than 25 fornia dairy producers and processors will be released soon. “While that feels like a very long percent drop in the number of Cali- have opportunities to work toward To view the California coopera- time away, producers should none- fornia dairies. mutually positive improvements of our tives’ proposal and USDA’s request for theless be very encouraged that this “For far too long, California dairy state’s dairy program,” Kaldor says. additional proposals, visit www.ams. process is underway and that we will farmers have been underpaid com- • Hearing, request for comments usda.gov/AMSv1.0/CAOrder. fi nally have a chance to consider pared to dairy farmers in the FMMO USDA has not yet determined For questions concerning the a much-needed alternative to the system, costing California dairy farm whether to conduct a hearing. Before documents, contact William Francis, California state system that may have families more than $1.5 billion,” he deciding if a hearing will be held, Order Formulation and Enforcement USDA is requesting additional pro- Division, 202-720-7183 or William. CLASSIFIED posals regarding the provisions of a [email protected]. CMN AMS seeks comments on review of FMMOs ADVERTISING WASHINGTON — USDA’s Agricultural entities, AMS says. Marketing Service (AMS) in Wednes- AMS says it will consider the con- day’s Federal Register published a tinued need for the FMMO program; • CHEESE/DAIRY 12 • CHEESE/DAIRY 12 notice of regulatory review and request the nature of complaints or comments for comments on federal milk marketing received from the public concerning the orders (FMMOs). FMMO program; the complexity of the AMS notes it published a plan in FMMO program; the extent to which the GOT CHEESE? the Feb. 18, 1999, Federal Register and FMMO program overlaps, duplicates or We purchase scrap cheese later an updated plan in the March 25, confl icts with other federal rules and, (fish(fish bait,bait, floorfloor sweeps, etc.)etc.) 2006, Federal Register to review certain to the extent feasible, with state and forfor feed.feed. WeWe cancan pickpick upup onon aa regulations using criteria contained in local government rules; and the length spot, weekly oror monthlymonthly basis.basis. section 610 of the Regulatory Flexibility of time since the FMMO program has Act (RFA). been evaluated or the degrees to which Please contact: BIG REWARD OFFERED “Given that many AMS regulations technology, economic conditions or FOR YOUR... [email protected] impact small entities, AMS decided other factors have changes in the areas • Cheese Trim • Cheese Fines (866) 547-6510 as a matter of policy to review certain affected by the FMMO program. • #1 and Undergrades regulations which, although they may Comments are due April 13, 2015. • Close Coded Products not meet the threshold requirement AMS invites interested persons to sub- • Natural, Processed, under section 610 of the RFA, warrant mit comments electronically at www. Imitation or Flavored review,” AMS says. “Accordingly, this regulations.gov. Written comments Call Dean, Eric, Pat or Wade: notice and request for comments is also may be sent to Erin C. Taylor, (877) 914-5400 made for the FMMO program.” marketing specialist, Order Formula- horizonsalesinc.com www.whalenfoodsinc.com The purpose of the review is to de- tion and Enforcement Branch, USDA/ termine whether the FMMO program AMS/Dairy Programs, STOP 0231-Room For more information please visit www.whalenfoodsinc.com should be continued without change, 2971-S, 1400 Independence Ave., S.W., amended or rescinded (consistent with Washington, DC 20250-0231. the objectives of the RFA) to minimize For more information, contact any signifi cant economic impact of rules Taylor at 202-720-7311 or at erin. For more information please • STORAGE 13 visit www.horizonsalesinc.com upon a substantial number of small [email protected]. CMN © 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) February 13, 2015 — CHEESE MARKET NEWS® 15 NEWS/BUSINESS

PORTS Four witnesses were called to testify: WASDE forecast to average $0.560-$0.590, up Norman Bessac, vice president of inter- from $0.550-0.580 in last month’s report. Continued from page 1 Continued from page 1 national Sales for Cargill; Katie Farmer, The nonfat dry milk (NDM) price vice president for consumer products forecast is lowered from $1.270-$1.330 Committee. ILWU claims the employers for BNSF Railway; Walter Kemmsies, herd expansion, USDA said this week last month to $1.185-$1.245 this month have not made themselves available to chief economist for Moffat & Nicholo; in its “World Agricultural Supply and as strong competition in export markets negotiate since last week. and John Greuling, a board member for Demand Estimates” (WASDE) report. is expected to persist during the fi rst “This is an effort by the employers to the Coalition for America’s Gateways Because of this slower growth in per- half of 2015, USDA says. put economic pressure on our members and Trade Corridors. cow production, USDA lowered its 2015 The mid-point of the cheese price and to gain leverage in contract talks,” says “Any time you disappoint a customer, milk production forecast to 211.5 billion forecast is unchanged but the range is Robert McEllrath, president, ILWU. “The it takes time to get their trust back,” pounds in 2015, down 200 million pounds narrowed to $1.595-$1.665. union is standing by ready to negotiate, as Cargill’s Bessac testifi ed, adding that from last month’s forecast. 2014 U.S. milk The Class III price forecast is in- we have been for the past several days.” some customers have already started production totaled 206.0 billion pounds. creased on higher prices to $16.30-$17.00 In a release issued on Wednesday, to look elsewhere for goods. “With this In the same WASDE report, USDA ups per hundredweight. The Class IV price PMA says that in light of ongoing and delay, our Asian customers cannot its product price forecasts for butter and forecast is lowered to $15.10-$15.90 due costly ILWU slowdowns, PMA members count on a dependable supply of U.S. whey due to strong demand and price to the lower NDM forecast more than will temporarily suspend premium-day beef and pork, so they have started to strength to date. Butter now is forecast offsetting a higher butter price forecast. weekend and holiday vessel operations cancel orders and are looking to sup- to average in the $1.655-$1.755 per pound The 2015 all-milk price forecast now on four upcoming dates, while yard, pliers in Chile, Australia and the Euro- range this year, up from last month’s is $17.40-$18.10, down from $17.75- gate and rail operations will continue pean Union to meet their needs.” CMN forecast of $1.600-$1.710. Dry whey is $18.55 in last month’s report. CMN at terminal operators’ discretion. In Southern California, terminal operators will expand daytime vessel operations on non-holiday weekends. “Last week, PMA made a compre- Tetra Scherping™ Yield Master Vat hensive contract offer designed to bring Durable, Dependable, Irreplaceable these talks to a conclusion,” says Wade Gates, PMA spokesman. “The ILWU responded with demands they knew we Patented counter rotating shafts. Higher cheese yields. could not meet and continued slowdowns Minimal RPM speeds. Reduced water usage. Built right to that will soon bring West Coast ports to ensure minimal maintenance. gridlock. What they’re doing amounts to a strike with pay, and we will reduce the extend to which we pay premium rates for such a strike.” (For more on the ongoing issue and PMA offer, see “With threat of port closure, PMA makes offer to ILWU” in last week’s issue.) The four dates affected by the sus- pension of vessel operations are Feb. 12, and Feb. 14-16. Meanwhile, the U.S. Senate Subcom- mittee on Surface Transportation and Merchant Marine Infrastructure, Safety and Security held a hearing this week on U.S. ports titled “Keeping Goods Moving.” However, according to the International Dairy Foods Association (IDFA), the focus of the hearing was instead on how goods are not moving at all — having a negative impact on the transportation supply chain — due to the labor negotiations affecting West Coast ports that have dragged on for more than nine months with 29 ports fi rst shut down on Feb. 7 and 8. All ports reopened this week before the latest closure announcement, but the stand-off is posing a threat to U.S. agricul- tural exports, including dairy, IDFA notes. Last November, IDFA joined 60 busi- ness organizations in signing a letter to President Barack Obama urging him to “use all tools available to the federal government” to restore the ports to full operation while negotiations continue. Agriculture industry members, including dairy businesses, have been experiencing delays of two to three weeks on chilled products because of Contact us: backups at West Coast ports, including (320) 485-4401 Long Beach and Los Angeles, two of the [email protected] busiest in the country. Tetrapak.com/cheese “We need to explore the policy op- tions to support port growth and future Tetra Pak, , PROTECTS WHAT’S GOOD and Tetra Scherping Yield volumes of freight to keep goods moving,” Master Vat are trademarks belonging to the Tetra Pak Group. Subcommittee Chair Deb Fischer, R- Neb., said during the hearing, IDFA says. For more information please visit www.tetrapak.com/cheese © 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 16 CHEESE MARKET NEWS® — February 13, 2015 NEWS/BUSINESS

IDFA calls for nominations for 2015 Dairy Industry Safety Recognition Awards, due March 31

WASHINGTON — The International IDFA notes. The organization included a a high priority,” says Emily Lyons, IDFA report (OSHA Form 300A). Employers are Dairy Foods Association (IDFA) is now new section on leading indicators starting director of regulatory affairs and counsel. required to post their OSHA 300A forms accepting applications for the 11th annual in 2013. By gathering this information, “We encourage all facilities to submit from Feb. 1 through April 30 each year. Dairy Industry Safety Recognition Awards, IDFA aims to enhance awareness and nominations for their processing and Processing facilities are judged in a program that honors facilities for out- understanding of leading indicators and trucking operations so we can recognize four product categories: natural and standing worker safety performance. to encourage employers to adopt leading and celebrate their successful efforts. processed cheese; dry, condensed and Building on changes made to the indicators in their worker safety programs. “In the coming year, IDFA hopes to evaporated products; ice cream and application process last year, IDFA says Examples of leading indicators in- incorporate an objective methodology frozen desserts; and fl uid milk. Within it continues to request information on clude number of inspections conducted, that will allow us to evaluate both lead- each product category, there are awards leading indicators about worker safety number of safety and health hazards ing and lagging indicators, and recognize for small, medium and large facilities to monitor the actions or activities that identifi ed, decreased time for hazard dairy companies for taking a proactive that achieve the best overall safety per- companies have in place to prevent abatement, increased employee training, approach to preventing workplace inci- formance rates based on the OSHA data. negative events or incidents, such as lost safety suggestions implemented and job dents,” Lyons adds. Trucking operations will receive workday injuries or illnesses. hazard analyses completed. For 2015, applicants will be judged certificates for having no lost days Most safety and health experts believe “Dairy product manufacturers con- on specifi c data required by the U.S. Oc- and no cases involving job transfers or that monitoring both leading and lagging tinue to demonstrate that providing a cupational Safety and Health Administra- restrictions. indicators is crucial to managing an effec- safe work environment for their pro- tion (OSHA) on the facility’s “Summary Award winners will be notifi ed in tive safety and health management system, duction and transportation workers is of Work-Related Injuries and Illnesses” the fall and featured in Dairy Foods magazine, which co-sponsors the safety awards program. The 2015 entry form is available on www. idfa.org, and there is no fee to enter. All en- tries must be submitted by March 31. CMN USDA announces availability of more than $16 million to support production

WASHINGTON — USDA’s National Insti- tute of Food and Agriculture (NIFA) last week announced the availability of more than $16 million in funding to support research, education and extension efforts to improve food production and increase food security, defi ned as regular access to affordable, nutritious food. NIFA is funding the grants through the Agriculture and Food Research Initiative (AFRI) Food Security program. “This funding will increase food secu- rity by improving agricultural production systems at the regional and national levels and by encouraging diverse agricultural production,” says Sonny Ramaswamy, NIFA director. The goal of the AFRI Food Security challenge area in 2015 is to develop more sustainable, productive and economically- viable plant and animal production systems. Milwaukee, Wisconsin This program also will develop regionally- MARCH 17–19 Wisconsin Center adapted crop cultivars and livestock breeds that contribute to rural economic develop- ment and prosperity while enhancing food security, NIFA says. ENTERENTN ONLINE WITH MYENTRIES© A letter of intent is due April 2, and ENTRY DEADLINE: full applications are due June 4. Specifi c — SAVE TIME AND MONEY! program requirements are included in the February 18 • Enter online: save $10/entry request for applications (RFA). • See your previous contest entries The 2014 Farm Bill requires NIFA to ENTRIES DELIVERED March 6 • Save time with automatic data establish Centers of Excellence for food CONTEST JUDGING March 17–19 entry and agricultural research, education and extension. Applicants who meet the AWARDS BANQUET April 23 • Print shipping tags for entry shipment requirements of this funding opportunity • Instantly view your contest scores are also eligible to apply for Center of Excellence designation as part of their grant application, which gives them prior- ity consideration during the external peer review process, NIFA notes. Information on USCHAMPIONCHEESE. ORG applying for this designation can be found in the RFA. For more information, vis- For more information please visit www.uschampioncheese.org it www.nifa.usda.gov. CMN © 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected])