Volume 36 February 19, 2016 Number 5

Scan this code for breaking Experts share key strategies to news and the latest markets! develop effective HR programs

By Alyssa Mitchell the Wisconsin Specialty Cheese (without their social security its own rather than borrowing Institute (WSCI) in Wisconsin number), offer letter, job de- language from another. INSIDE WISCONSIN DELLS, Wis. Dells. scription, emergency contact, The handbook should be — Not all businesses have •Employee handbook and verifi cation of receipt of hand- practical, she notes. ✦ Guest column: ‘Down’ an offi cial Human Resources personnel fi les book, performance reviews, dis- “Say what you do, and do may not be over yet. (HR) department. In the dairy Mary Felton, founder and ciplinary actions and training what you say,” she says. industry, company sizes range president of HR Business records. Employees by law are Felton suggests leaving

For details, see page 4. from small, family-owned busi- Partners LLC, stressed the im- permitted to view this fi le upon some wiggle room by using ✦ Global Dairy Trade nesses to large international portance of having an employee request, Felton notes. permissive language such as prices weaken further. players. But in an ever-evolving handbook and outlined key as- In the confidential file, “employer may” versus “will,” For details, see page 5. regulatory environment, it’s pects that should be included. employers can keep employ- and “we will strive to” versus paramount that companies of Felton notes that in today’s ees’ social security numbers, “we will.” ✦ World Championship all sizes keep diligent records legal landscape, the U.S. De- equal opportunity employment “Don’t lock yourself in,” Cheese Contest draws and clearly communicate poli- partment of Labor (DOL) is records, informal performance she cautions, recommending record number of entries. cies to employees. increasingly conducting audits notes or investigation notes. companies also use language For details, see page 7. Experts in HR, business of companies’ recordkeeping Medical record and benefi t including “management re- and employment law recently and personnel fi les, including fi les may include doctors’ notes, serves the right to...” for various ✦ R&G Cheese Makers sets shared key strategies for com- hours worked, safety issues, Family and Medical Leave Act policies. March completion date panies to have their bases cov- paid time off and more. (FMLA) information and re- It is particularly important for new creamery. ered when it comes to the law “They can audit anything,” cords, benefi t forms, physical for companies to review their For details, see page 9. and successful HR practices she says. and drug tests. sexual harassment policy with at a meeting with members of Felton notes that No. 1 rule Finally, some records, such employees, and to get a signed for companies is to know their as Form I-9 (immigration) and dated acknowledgement boundaries as an employer and audits, should be kept in a that policies have been covered know when to call in the ex- binder where they are easily ac- with each employee, Felton USDA projects long-term rise perts, from issues ranging from cessible for specifi c purposes, says. Signed copies should be health care costs to workers’ Felton says. kept in employees’ personnel in demand for dairy exports compensation to recruitment Various postings and sig- fi les. policies. nage related to employment • The generation gap WASHINGTON — Domestic demand for cheese and butter, as well Regarding personnel fi les, laws also are required to be In addition to having the as U.S. exports of dairy products, are projected to rise over the next Felton notes they should be posted in a public area, she proper fi les and policies in decade, according to a long-term projections report released this kept in a locked, secured and notes. place, with various genera- week by USDA. fi reproof cabinet. She suggests Felton also stresses the im- tions collaborating in today’s “USDA Agricultural Projections to 2025” notes that over the next employers set up fi les into three portance of having an employee workforce, it helps to have an several years, the agricultural sector will continue to adjust to lower categories — personnel, confi - handbook. She notes this is a understanding of varying value prices for most farm commodities. Long-run developments for global dential and medical/benefi ts. legal document that can be systems across different age agriculture refl ect steady world economic growth and continued Personnel files may in- used in court, and she recom- groups, notes Andrew C. Marris, global demand for biofuel feedstocks, factors which combine to clude employee applications mends that a company write Turn to HR, page 12 D support longer run increases in consumption, trade and prices of agricultural products. Although a stronger U.S. dollar somewhat constrains growth in U.S. agricultural exports, USDA says the United States will remain competitive in global agricultural markets. U.S. export values are ‘Wood in cheese’ media Grassland Dairy projected to decline in 2015-2016 and farm cash receipts fall in Products acquires 2015-2017 before both grow over the rest of the projection period. frenzy spotlights fraud Alcam Creamery Net farm income generally increases over the projection period. By Alyssa Mitchell Milk production is projected to continue to rise, reaching 256.2 By Alyssa Mitchell billion pounds in 2025, USDA says. The long-run upward trend con- MADISON, Wis. — New media attention this week on the issue tinues in output per cow, also projected to increase through 2025, RICHLAND CENTER, Wis. of adulterated cheese has the industry on the defense over the refl ecting continued technological and genetic developments as well — Grassland Dairy Products integrity of its products. as effi ciency gains from consolidation. Inc., based in Greenwood, Several news outlets this week reported that wood pulp may Strong demand both domestically and for U.S. dairy product ex- Wisconsin, has acquired be included in grated Parmesan cheese available for purchase ports, combined with moderate gains in projected feed costs, provide Alcam Creamery Co., Rich- at various retailers. favorable returns to dairy producers that also encourage a general land Center, Wisconsin. The Bloomberg Business reports that it hired an independent labo- expansion of milk cow numbers. transaction was fi nalized ratory to test store-bought grated cheese for wood pulp content. USDA projects milk cow numbers to decrease in 2016, remain Feb. 12. A small amount — 2 to 4 percent — is allowed in grated cheese about even through 2020, and then rise through the remainder of Employees at the Alcam as an additive to keep the product from clumping and is listed the projection period to reach 9.35 million head in 2025. Rising plant will stay on, and the on ingredient labels as cellulose. Cellulose is recognized as safe milk prices after 2018 and feed costs that are lower than in recent plant will remain under the by FDA and is used in a wide variety of packaged food products. D Turn to OUTLOOK, page 12 Turn to FRAUD, page 15 D Turn to ALCAM, page 15 D © 2016 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 19, 2016 MARKET INDICATORS

Chicago Mercantile Exchange Cash prices for the week ended February 19, 2016 CHEESE FUTURES* for the week ending February 18, 2016 (Listings for each day by month, settling price and open interest) Monday Tuesday Wednesday Thursday Friday Feb. 15 Feb. 16 Feb. 17 Feb. 18 Feb. 19 Fri., Feb. 12 Mon., Feb. 15 Tues., Feb. 16 Wed., Feb. 17 Thurs., Feb. 18 FEB16 1.525 3,929 1.522 3,935 1.520 3,935 1.522 3,939 Cheese Barrels MAR16 1.540 3,875 1.529 3,876 1.525 3,876 1.526 3,877 Price $1.4600 $1.4700 $1.4725 $1.4800 APR16 1.541 3,323 1.526 3,300 1.519 3,274 1.524 3,274 Change Markets -2 +1 +1/4 +3/4 MAY16 1.547 3,266 1.542 3,275 1.533 3,306 1.534 3,306 Closed JUN16 1.585 3,014 1.578 2,997 1.568 3,002 1.572 2,982 Cheese 40-lb. Blocks JUL16 1.624 2,539 1.621 2,602 1.608 2,617 1.611 2,621 Price AUG16 1.664 2,333 Markets 1.660 2,399 1.650 2,428 1.651 2,437 $1.4900 $1.4900 $1.4900 $1.4875 Closed Change SEP16 1.690 2,229 1.683 2,269 1.675 2,269 1.679 2,277 NC NC NC -1/4 OCT16 1.703 1,910 1.701 1,937 1.695 1,954 1.700 1,970 1.697 2,134 Weekly average (Feb. 16-19): Barrels: $1.4706(-.0004); 40-lb. Blocks: $1.4894(+.0074). NOV16 1.701 2,092 1.697 2,174 1.700 2,195 DEC16 1.700 1,971 1.697 1,992 1.697 2,008 1.700 2,032 Weekly ave. one year ago (Feb. 16-20, 2015): Barrels: $1.4850; 40-lb. Blocks: $1.5413. JAN17 1.682 127 1.683 139 1.683 139 1.684 167 FEB17 1.680 94 1.681 131 1.682 145 1.682 175 Grade A NDM MAR17 1.698 71 1.680 106 1.682 125 1.682 155 Price Markets $0.7575 $0.7450 $0.7350 $0.7400 APR17 1.700 37 1.700 37 1.700 37 1.690 76 MAY17 1.700 37 1.700 37 1.700 37 1.700 61 Change Closed +2 -1 1/4 -1 +1/2 JUN17 1.700 37 1.700 37 1.700 37 1.700 61 Weekly average (Feb. 16-19): Grade A: $0.7444(-.0011). Total Contracts Traded/ Open Interest 325/30,921 624/31,240 591/31,400 439/31,662 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. Grade AA Butter *Total Contracts Traded/Open Interest reflect additional months not included in this chart. Price Markets $2.0500 $2.0425 $2.0550 $2.0550 Change Closed -6 -3/4 +1 1/4 NC Weekly average (Feb. 16-19): Grade AA: $2.0506(-.0804). DRY WHEY FUTURES* for the week ended February 18, 2016 Class II Cream (Major Northeast Cities): $2.4507(-.0166)–$2.6638(-.0181). (Listings for each day by month, settling price and open interest)

Sign up for our daily fax or email service for just $104 a year. Call us at 608-288-9090. Fri., Feb. 12 Mon., Feb. 15 Tues., Feb. 16 Wed., Feb. 17 Thurs., Feb. 18 FEB16 24.70 688 24.70 685 24.65 680 24.75 680 MAR16 24.48 689 24.48 689 24.48 689 24.75 692 APR16 25.40 555 25.40 555 25.40 555 25.50 566 MAY16 25.90 535 25.90 535 25.90 535 26.00 544 JUN16 25.58 536 25.58 536 25.75 536 25.75 544 JUL16 26.03 394 Markets 26.03 395 26.03 401 26.40 414 Closed February 15, 2016 AUG16 26.13 388 26.13 389 26.13 395 26.40 407 Weekly Cold Storage Holdings SEP16 27.00 365 27.00 366 27.00 372 27.00 382 On hand Week Change since Feb. 1 Last Year OCT16 28.00 319 28.00 319 28.00 327 28.00 337 Monday Change Pounds Percent Pounds Change NOV16 28.53 268 28.53 268 28.78 277 28.78 287 DEC16 29.50 279 287 Butter 18,327 +1,914 +3,831 +26 +11,086 29.50 279 29.50 29.50 297 7,241 JAN17 29.78 26 29.78 26 29.78 26 29.78 26 Cheese 92,771 +944 +808 +1 98,171 -5,400 FEB17 30.50 25 30.50 25 30.50 25 30.50 25 MAR17 (These data, which include government stocks and are reported in thousands of pounds, are based on reports from 27.50 27 27.50 27 27.50 27 27.50 27 a limited sample of cold storage centers across the country. This chart is designed to help the dairy industry see the Total Contracts Traded/ trends in cold storage between the release of the National Agricultural Statistics Service’s monthly cold storage reports.) Open Interest 1/5,198 6/5,198 53/5,236 114/5,332 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 19, 2016 (Dollars per hundredweight, 3.5% butterfat test) YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 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 NONFAT DRY MILK 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 Central & East: low/medium heat $.7400(+3)-$.8500; 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 mostly $.7600(+1)-$.8200. 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 high heat $.9500(+5)-$1.1500. 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 West: low/medium heat $.6825(+3/4)-$.8100(-1); 2015 16.18 15.46 15.56 15.81 16.19 16.72 16.33 16.27 15.82 15.46 15.30 14.44 mostly $.6950-$.7600. 2016 13.72 high heat $.8400(+1 1/2)-$1.0950. Calif. manufacturing plants: extra grade/grade A weighted ave. $.7767(-.0030) based on 7,758,298 lbs.

WHOLE MILK POWDER (National): $1.0000-$1.5200. 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, P.O. (FOB)Central and West: $.1800-$.3100; mostly $.1800-$.2500. email: [email protected] Box 628254, Middleton, WI 53562; Phone 608/831-6002; Kate Sander, Editorial Director FAX 608/288-9093. Periodicals postage paid at Madison, (PH 509/962-4026; FAX 509/962-4027) WI. Circulation records are maintained by Quarne Publishing LLC, P.O. Box 628254, Middleton, WI 53562. POSTMASTER: WHEY POWDER email: [email protected] Send address changes to Cheese Market News®, Subscriber Alyssa Mitchell, Central: nonhygroscopic $.2000(+2)-$.2750; Senior Editor Services, P. O. Box 628254, Middleton, WI 53562; Form (PH 608/288-9090; FAX 608/288-9093) mostly $.2250-$.2600(+1/2). 3579 requested; or call direct at 608/831-6002. All rights West: nonhygroscopic $.2300(+1)-$.3350; email: [email protected] reserved under the United States International and Pan- Rena Archwamety, News/Web Editor American Copyright Conventions. No part of this publication mostly $.2300-$.2700. (PH 608/288-9090; FAX 608/288-9093) may be reproduced, stored in a retrieval system or transmitted (FOB) Northeast: extra grade/grade A $.2475(+2 1/4)-$.2800(+1/2). email: [email protected] in any form or by any means, mechanical, photocopying, Chelsey Dequaine, Assistant Editor electronic recording or otherwise, without the prior written ANIMAL FEED WHEY (Central): Whey spray milk replacer $.1400-$.2150. (PH 608/288-9090; FAX 608/288-9093) permission of Quarne Publishing LLC. Opinions expressed email: [email protected] in articles are those of the authors and do not necessarily REGULAR CONTRIBUTORS UHÁHFWWKRVHRI4XDUQH3XEOLVKLQJ//&GED&KHHVH0DUNHW WHEY PROTEIN CONCENTRATE (34 percent): $.5500(+8)-$.6900; News®. Cheese Market News® does not endorse the products Creative Business Services, FCStone, International Dairy mostly $.5500(+2)-$.6100. of any advertiser and does not assume and hereby disclaims Foods Association, Eric Meyer, National Milk Producers any liability to any person for any loss or damage caused by Federation, Rice Dairy, John Umhoefer, U.S. Dairy Export errors or omissions in the material contained herein, regard- Council, WOW Logistics, Edward Zimmerman DRY BUTTERMILK less of whether such errors result from negligence, accident (FOB)Central & East: $.7400-$.8600(+1/2). ADVERTISING/SUBSCRIPTION ORDERS & INFO or any other cause whatsoever. Copyright 2016 by Quarne Publishing LLC. (FOB) West: $.7600(-2)-$.8500; mostly $.8000-$.8200. Contact: Susan Quarne - Publisher Subscriptions: $145 for U.S., second-class delivery; P.O. Box 628254, Middleton, WI 53562 IRU86ÀUVWFODVVGHOLYHU\LQFOXGLQJ&DQDGDDQG PHONE 608/831-6002 • FAX 608/288-9093 International rate to all others. Printed in U.S.A. CASEIN: Rennet $2.5000-$3.3500; Acid $2.7300-$3.5000. 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. © 2016 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 19, 2016 — CHEESE MARKET NEWS® 3 MARKET INDICATORS

RETAIL PRICES (Consumer Price Index*) Percent change versus January 2016 1 mo. 6 mo. 1 year 2 years Cheese & related products 231.772 +0.5 -1.0 -2.7 +4.9 Dairy & related products 220.869 +0.0 -0.3 -3.0 +0.7 All Food 248.631 +0.3 +0.7 +0.8 +4.1 *Source: U.S. Department of Commerce. For index, prices during 1982-84 = 100.

Advanced Prices and Pricing Factors

March 2016 February 2016 Base Skim Milk Price for Class I1: $5.54/cwt. $5.91/cwt. Advanced Class III Skim Milk Pricing Factor: $5.54/cwt. $5.91/cwt. Advanced Class IV Skim Milk Pricing Factor: $5.35/cwt. $5.47/cwt. Advanced Butterfat Pricing Factor2: $2.4103/lb. $2.2678/lb. For more information please visit www.devilletechnologies.com Class II Skim Milk Price: $6.05/cwt. $6.17/cwt. Class II Nonfat Solids Price: $0.6722/lb. $0.6856/lb. Two-week Product Price Averages: Butter: $2.1618/lb. $2.0442/lb. CME FUTURES for the week ended February 18, 2016 Nonfat Dry Milk: $0.7684/lb. $0.7817/lb. Cheese: $1.5158/lb. $1.5115/lb. Class III Milk* Dry Whey: $0.2426/lb. $0.2344/lb. Fri., Feb. 12 Mon., Feb. 15 Tues., Feb. 16 Wed., Feb. 17 Thurs., Feb. 18 FEB16 13.87 4,521 13.84 4,457 13.83 4,457 13.84 4,390 Note: The Class I price equals the Class I skim milk price times 0.965 plus the MAR16 14.06 5,022 13.90 5,006 13.87 4,989 13.88 5,007 Class I butterfat price times 3.5, rounded to the nearest cent. APR16 14.11 4,017 13.91 4,253 13.85 4,363 13.87 4,402 MAY16 14.19 3,510 14.10 3,582 14.01 3,632 14.05 3,640 For information only: The Class I base price is 13.78. JUN16 14.50 2,753 14.45 2,780 14.34 2,816 14.41 2,861 1/ Higher of advanced Class III or IV skim milk pricing factors. The Class I skim milk price equals JUL16 14.95 2,439 14.86 2,522 14.76 2,565 14.77 2,573 Markets this price plus applicable Class I differential. AUG16 15.29 2,229 15.24 2,261 15.15 2,312 15.18 2,318 SEP16 15.64 Closed 15.51 2,257 15.41 2,294 15.47 2,303 2/ The Class I butterfat price equals the price plus applicable Class I differential divided by 100. 2,206 OCT16 15.80 1,715 15.72 1,767 15.67 1,804 15.75 1,805 Data provided by USDA NOV16 15.81 1,546 15.74 1,590 15.74 1,625 15.78 1,633 DEC16 15.82 1,473 15.75 1,504 15.75 1,541 15.78 1,546 JAN17 15.60 274 15.62 273 15.64 277 15.70 277 FEB17 15.52 202 15.56 211 15.60 215 15.65 215 MAR17 15.45 184 15.45 182 15.45 182 15.55 193 APR17 15.53 96 15.53 103 15.53 103 15.53 102 Total Contracts Traded/ International Dairy Markets February 19, 2016 Open Interest 632/32,664 1,334/33,259 891/33,686 751/33,837 Western Europe Class IV Milk*

Butter: 82 percent butterfat $2,850-$3,050(-50). Fri., Feb. 12 Mon., Feb. 15 Tues., Feb. 16 Wed., Feb. 17 Thurs., Feb. 18 Butteroil: 99 percent butterfat $3,500-$3,975. FEB16 13.40 241 13.40 241 13.40 241 13.40 241 Skim Milk Powder: 1.25 percent butterfat $1,700-$1,825(+25). MAR16 13.76 241 13.76 241 13.71 241 13.71 241 Whole Milk Powder: 26 percent butterfat $2,100-$2,300(+50). APR16 13.76 262 13.76 262 13.57 261 13.57 261 MAY16 13.86 279 Markets 13.86 279 13.75 278 13.75 278 Whey Powder: Nonhygroscopic $500-$700(-25). JUN16 14.10 256 14.10 256 14.06 256 14.06 256 Closed JUL16 14.28 262 14.28 262 14.19 262 14.19 262 Oceania AUG16 14.43 201 14.43 201 14.40 201 14.40 201 Butter: 82 percent butterfat $2,800(-100)-$3,200. SEP16 14.51 168 14.51 168 14.51 168 14.51 168 Cheddar Cheese: 39 percent maximum moisture $2,500(-500)-$3,200(-50). OCT16 14.51 205 14.51 205 14.51 205 14.51 205 NOV16 14.71 146 14.64 146 14.59 146 14.59 148 Skim Milk Powder: 1.25 percent butterfat $1,725-$1,900. DEC16 14.71 177 14.71 177 14.59 177 14.59 177 Whole Milk Powder: 26 percent butterfat $1,835(-165)-$2,100(-100). Total Contracts Traded/ Source: Dairy Market News. Prices reported in U.S. dollars per metric ton, F.O.B. port. To convert Open Interest 3/2,468 3/2,468 9/2,467 8/2,470 to price per pound: divide price by 2,204.6 pounds. Cash-Settled NDM*

Fri., Feb. 12 Mon., Feb. 15 Tues., Feb. 16 Wed., Feb. 17 Thurs., Feb. 18

FEB16 76.78 1,107 77.00 1,112 76.93 1,115 77.00 1,115 MAR16 79.00 1,173 80.25 1,183 79.50 1,179 79.28 1,182 APR16 79.15 989 82.05 1,021 80.25 1,019 80.50 1,018 National Dairy Products Sales Report Markets MAY16 80.18 938 83.00 956 81.38 967 81.75 966 For the week ended: 2/13/16 2/6/16 1/30/16 1/23/16 JUN16 82.00 741 Closed 85.00 754 82.85 756 83.50 766 JUL16 83.50 642 85.43 644 84.18 643 85.50 649 Cheese 40-lb. Blocks: AUG16 85.03 546 87.50 552 86.00 544 87.03 541 Average price1 $1.4958 *$1.5012 *$1.4977 *$1.4966 SEP16 87.00 427 88.00 433 87.00 433 88.00 434 Sales volume2 12,942,190 *12,481,031 *12,852,327 *13,623,977 OCT16 88.00 314 89.25 323 88.75 328 89.00 329 Cheese 500-lb. Barrels: Total Contracts Traded/ Average price1 $1.5797 $1.5799 $1.6180 $1.6387 Open Interest 321/7,571 257/7,680 161/7,687 108/7,703 Adj. price to 38% moisture $1.5074 $1.5102 $1.5420 $1.5626 Sales volume2 9,673,471 9,478,002 10,360,803 10,403,831 Cash-Settled Butter* Moisture content 35.03 35.14 34.94 34.98 Fri., Feb. 12 Mon., Feb. 15 Tues., Feb. 16 Wed., Feb. 17 Thurs., Feb. 18 Butter: FEB16 214.58 793 213.73 793 213.00 789 212.95 781 Average price1 $2.1514 $2.1720 $2.1500 *$2.1111 MAR16 213.25 890 209.25 901 209.00 901 209.00 920 810 843 210.00 840 Sales volume2 4,916,851 *5,002,912 *3,596,692 5,001,921 APR16 214.98 211.00 842 207.50 MAY16 214.98 631 Markets 211.15 664 209.50 674 210.40 687 Nonfat Dry Milk: JUN16 214.98 611 Closed 211.00 617 209.25 642 210.98 658 Average price1 $0.7631 *$0.7732 $0.7712 *$0.7695 JUL16 214.00 428 211.00 428 210.50 431 210.03 446 Sales volume2 15,856,830 *17,591,439 *14,387,465 *14,208,322 AUG16 214.00 394 212.00 402 212.00 407 211.03 428 Dry Whey: SEP16 215.68 361 213.50 361 212.00 373 212.40 384 215.10 229 261 212.00 264 212.60 271 1 $0.2375 *$0.2478 $0.2385 $0.2344 OCT16 214.13 Average price NOV16 215.00 189 214.00 195 212.00 197 212.50 211 Sales volume2 7,297,070 *7,210,135 9,687,056 6,940,657 Total Contracts Traded/ Open Interest 246/5,774 */Revised. 1/Prices weighted by volumes reported. 2/Sales as reported by participating manufacturers. 334/5,432 267/5,570 268/5,649 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. © 2016 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 19, 2016 GUEST COLUMNIST CMN Exclusive!

agreeable to most buyers than $2.00. But their lowest rate in more than 5 years Perspective: in quiet times like this, it’s important are all a negative entrée into our spring to remember that “value” has little fl ush. The export arena remains shaky Dairy Markets meaning in the parlance of commodity and suppressed, with the latest tally trading. Just ask the energy guys. from December showing cheese down Dave Kurzawski, a senior broker Smart, well-informed professional 9 percent. with FCStone, Chicago, contributes oil analysts and traders who have their I’d rather see global demand increase this column exclusively for Cheese fi nger on the pulse of energy issues and instead of an uptick in farm bankrupt- Market News®. policy saw tremendous value at $60 cies in order to further stabilize prices, crude last year. And then we heard of but that looks increasingly less likely as pretty good value again at $50. Then $45 we move through the fi rst quarter. looked like a place to buy more, and $40, This rather negative view could and then just below $40, and now — god be wrong and should not prevent buy willing — $30 crude. side hedgers from being proactive if As the saying goes, when they raid prices make sense for your business or the house of ill-repute, the good girls and your customers’ business. Remember, the piano player go to jail too. In other hedgers ought to be consistent in their words, no one knows how far down will budget setting. They ought to be able be once down gets started. to understand sometimes they will take ‘Down’ may not be over yet “Down” got started for the U.S. hedge losses. But they shouldn’t fool cheese market most recently in No- themselves into believing there is some Sitting down to write this article, I did cheese. vember of last year when prices broke pre-determined level of “value.” what I suspect every well-intentioned Calm markets don’t necessarily make below the long-supported $1.60 level. As March promotions and Easter author does: closed my computer and great stories. And, after this year’s Dairy Huge cheese inventories and solid milk holiday orders wind down early next got up to clean out the kitchen junk Forum, it seems expectations favor a production in cheese producing regions month, will the bids for spot loads in the drawer to clear my head. Out with the relatively stable $1.40 to $1.50 cheese weighed on the market. Solid domestic United States fi nally back away? If they old receipts and dead batteries, in with market for the fi rst half of the year. demand and “value” buying underpinned do, where will we fi nd “value” next? Time the procrastination and hopefully some That’s a pretty benign outlook, one that the market causing what looks to be will tell, but maybe we should go ahead inspiring comment about the dairy comes complete with a handy comment a soft landing for cheese prices. But and toss out the concept along with markets. Of course, this is easier said repeated several times over lately: “Buy- “down” may not be over yet. those old receipts and batteries. CMN than done this quiet February. With the ers fi nd value here.” Weaker world prices (recent GDT exception of butter prices, which have Fair enough. I’ve used the word auction posted $1.15 Cheddar average), The views expressed by CMN’s guest fallen to early January lows recently, “value” to describe buyer behavior abundant global and domestic fresh milk columnists are their own opinions and the dairy markets have spent the past before. Relatively speaking, it makes supplies, and a recent report from FAO do not necessarily refl ect those of Cheese several weeks in limbo — particularly sense. $1.50 cheese is a whole lot more that food prices are starting 2016 at Market News®. NEWS/BUSINESS

FDA Deputy Director Taylor meets with artisan cheesemakers to learn about concerns WASHINGTON — Following an an- key issues: for your product.” scientifi c engagement, with technical nouncement by FDA last week that it • A need for transparency in rule- He adds that preventive controls are discussions informed by what cheese- is pausing its testing program for non- making, including the process that leads about industry knowing what is needed makers are doing. toxigenic E. coli in cheese, Michael to policy change, as well as discussion and assessing what history has shown ACS says those present at the listen- Taylor, FDA deputy director for foods and with stakeholders to understand real- is successful. ing session agreed that the next step veterinary medicine, met with raw milk world implications early in the rule- is to pull together a group of relevant cheese producers to learn more about making process. stakeholders, technical experts and the concerns of the American artisan • Collaborative engagement between “We need and value appropriate FDA staff to convene and cheese industry. regulators and cheesemakers includ- discuss what preventive controls might A listening session was held Feb. 12 at ing sharing of best practices, data and good regulation look like for raw milk cheesemaking, and FDA’s Center for Food Safety and Applied science-based information. both to protect our how testing can play its appropriate role Nutrition, where Taylor was joined by Dr. • Concern over the uncertain climate customers as well as in verifying controls. Susan Mayne, director of the Center for for raw milk cheesemakers, in particu- “Concrete, measurable steps need Food Safety and Applied Nutrition, and lar regarding potential changes to the our collective industry.” to be taken on the part of FDA at every a number of pertinent FDA staff. 60-day aging rule for raw milk cheeses. level to give the cheesemaking com- In opening remarks, Nora Weiser, • Building trust after years of inter- Jeremy Stephenson munity confi dence that regulators are executive director of the American actions that focused on enforcement of SPRING BROOK FARM operating in the spirit of FSMA,” says Cheese Society (ACS), noted ACS’s de- rules rather than enhancement of safety Jeremy Stephenson, cheesemaker at sire to preserve and protect traditional outcomes. Spring Brook Farm in Vermont and a cheesemaking practices; ensure safe, • Impact of the Food Safety Modern- In response to ongoing concerns over member of the ACS board of directors. diverse products for consumers; and ization Act (FSMA) on artisan, farmstead changes to the 60-day aging rule, Taylor “We need and value good regulation both work with regulators to avoid undue and and specialty cheesemakers. assured the group that any change to to protect our customers as well as our unnecessary barriers to growth. • Recognition of the value and visibil- the rule will not be a surprise to stake- collective industry.” She added that many allied industry ity of specialty cheese among consumers, holders, and that the open dialogue at ACS notes that this spring it will dis- groups — including regional cheese its importance in strengthening rural the listening session is a prelude to any seminate a “U.S. Cheesemaker Industry guilds, international cheese organiza- economies and its role in growing the future rulemaking or comment process. Census” to producers throughout the tions and other dairy industry groups entire dairy and cheese sector. (For more Mayne stresses the importance of United States. The data from this anony- — share these priorities. on these issues, see “FDA to re-evaluate science, and pledges that FDA will seek mous census will provide critical infor- Seven ACS members, all raw milk criteria for bacteria in raw milk cheese” outside consult from academia and mation about the shape, scope, economic cheesemakers from around the United in last week’s issue of Cheese Market science in approaching artisan cheese impact, practices, trends and challenges States, lent their voices to advance the News.) safety. of the artisan and specialty cheesemak- dialogue and understanding needed to Taylor notes that FDA and the Mayne notes she sees three steps ing industry in the United States. It also ensure continued growth of the artisan cheese industry have to work together, in moving forward: dialogue, which will provide benchmarking information cheese sector, ACS says. Presenting and ACS is positioned for leadership in was furthered at the listening session; and quantitative data to inform the cheesemakers focused on several helping FDA understand “what works data, which must be shared openly; and industry’s interactions with FDA. CMN © 2016 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 19, 2016 — CHEESE MARKET NEWS® 5 NEWS/BUSINESS

FoodTools launches new, mobile-friendly Forever Cheese recalls Mitica brand Pecorino website to better serve dairy industry NEW YORK — Forever Cheese Inc. of to date related to this potential con- SANTA BARBARA, Calif. — Food- mobile screens.” Long Island City, New York, has recalled tamination. Tools has launched its redesigned The website also includes an ac- 40 cases of Mitica brand Pecorino Aged The recall was the result of a routine website. The website (www.foodtools. tive blog that covers topics such as Cheese in Walnut Leaves (Pecorino sampling program by Forever Cheese com) has been updated to better serve best practices, test cuts, innovative Foglie di Noci) from one specifi c pro- which revealed that the imported the dairy, baking and food processing advances and industry news. duction code because it has the poten- cheese tested positive for the bacteria. industries, the company says, noting “The new website is the go-to tial to be contaminated with Listeria The company has ceased distribution of the updated website is responsive and place for everyone from small start-up monocytogenes. the affected lot as FDA and the company mobile friendly, features photos and bakeries to large industrial food pro- The imported cheese was shipped to continue their investigation as to what videos, includes an updated blog and duction facilities,” says Marty Grano, distributors between Jan. 27 and Feb. caused the problem. is translated into English, Spanish and president and CEO, FoodTools. “The 3, 2016, and was further sold to retail- All distributors and retailers have Chinese. website is organized by type of food ers and restaurants in California, Ohio, been contacted in an effort to recall any “As a global company, we want to product, i.e. cheese, pizza and more. Pennsylvania, New York, Colorado, Ver- remaining products in the marketplace, serve the international customers in Just click on your food product and the mont, Virginia, Florida and Connecticut. and consumers who have purchased the their own native languages,” says Ryan website will show which machines will The cheese in question is from the affected Mitica brand Pecorino Aged in Lantieri, international sales and service improve the quality, consistency and production code NOC15313, Lot X2537. Walnut Leaves may contact the retailer manager, FoodTools. effi ciency of your production line.” CMN There have been no illnesses reported or the company for a full refund. CMN The company says the new website better serves the food processing indus- try by bringing its information to mobile devices in a responsive web layout. “One-third of our website visitors are coming to FoodTools.com from mobile devices,” says Doug Petrovich, vice president, FoodTools. “We knew the FoodTools website needed to be redesigned to be easily viewed on

Global Dairy Trade prices weaken further AUCKLAND, New Zealand — The Global Dairy Trade (GDT) price index fell 2.8 percent, and average prices for almost all commodities were lower Tuesday following the latest auction on GDT, Fonterra’s internet-based sales platform. Anhydrous milkfat was the only com- modity to see an average price increase Tuesday, up 1.5 percent to US$3,527 per metric ton FAS ($1.5998 per pound). The average price achieved across all contracts and contract periods, and percent decline from the last auction, for the remaining commodities is as GEA UHT Plant follows: • Butter: US$2,834 per metric ton Your Product. Our Systems Know-How. FAS ($1.2855 per pound), down 2.3 percent. Today‘s food, dairy and beverage lines need modern technology that is innovative, • Buttermilk powder: US$1,496 per GHƂEKGPVCPFTGNKCDNG)'#JCUVJGGPIKPGGTKPIUQNWVKQPUVQTGVTQƂVCPGZKUVKPI metric ton FAS ($0.6786 per pound), system or develop a completely new plant. With years of technical expertise, GEA down 1.2 percent. works closely with your product developers to custom engineer the best solution. • Cheddar: US$2,535 per metric )'#CUGRVKE2'6DQVVNGƂNNKPI r heat treatment ton FAS ($1.1499 per pound), down r PET and HDP'DQVVNGƂNNKPI r OGODTCPGƂNVTCVKQP 5.6 percent. r cleaning-in-place (CIP) r thermal concentration and separation • Lactose: US$574 per metric on r freezing and refrigeration r drying and particulate processing FAS ($0.2604 per pound), down less r process integration and automation than 1 percent. r powder transport & packaging • Rennet casein: US$3,852 per met- Proud to announce the addition of ric ton FAS ($1.7473 per pound), down GEA de Klokslag 11.5 percent. – world leaders in solutions for hard and • Skim milk powder: US$1,762 per 1600 O‘Keefe Road, Hudson, WI, 54016 semi-hard cheese metric ton FAS ($0.7992 per pound), Phone: 1 715 386 9371, Fax: 1 715 386 9376 molding, pressing down 1.4 percent. and brining • Whole milk powder: US$1,890 per [email protected], www.gea.com metric ton FAS ($0.8573 per pound), down 3.7 percent. The next trading event will be engineering for a better world GEA Group held March 1. For more information visit www.globaldairytrade.info. CMN For more information please visit www.gea.com © 2016 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 19, 2016 NEWS/BUSINESS

USDA proposes changes to SNAP regulations with improvements for low-income Americans WASHINGTON — USDA Under Secre- to develop regulations to ensure that of at least 168 required food items matter,” Concannon says. “Public dis- tary for Food, Nutrition and Consumer stores that accept SNAP offer a broader per store. closure of this information is intended Services Kevin Concannon this week variety of healthy food choices. The USDA says it is working to ensure to serve as a deterrent against retailer announced a proposed rule, published stocking provisions in the proposed that access to food retailers is not fraud. The information would provide in Wednesday’s Federal Register, to rule would require SNAP-authorized hindered for SNAP participants as a the public with insight into the integrity provide Supplemental Nutrition As- retail establishments to offer a larger result of this rule. of these businesses and individuals.” sistance Program (SNAP) participants inventory and variety of healthy food The proposed rule also underscores More than 260,000 retailers na- increased access to healthy foods by options so that recipients have access USDA’s authority under the Food and tionwide are currently authorized to requiring stores that accept SNAP to to more healthy food choices. SNAP Nutrition Act to publicly disclose redeem SNAP benefi ts, USDA says. stock a wider array of food choices, retailers would be required to offer information about SNAP retailers Comments and suggestions on including dairy products. seven varieties of qualifying foods in disqualifi ed or sanctioned for program the proposed rule are encouraged to “USDA is committed to expanding four staple food groups for sale on a violations, USDA notes. Information to help USDA determine when, where, access for SNAP participants to the continuous basis, along with perish- be disclosed under provisions of the and if any fl exibility should be pro- types of foods that are important to a able foods in at least three of the four proposed rule would be limited to the vided to prevent reductions in SNAP healthy diet,” Concannon says. “This staple food groups. The staple foods name and address of the store, the client food access. Comments are proposed rule ensures that retailers groups are dairy products; breads and owners’ and offi cers’ names, and the due to USDA’s Food and Nutrition who accept SNAP benefi ts offer a cereals; meats, poultry and fi sh; and nature of the violation for which the Service (FNS) by April 18, 2016. FNS variety of products to support healthy fruits and vegetables. retailer was sanctioned. will make comments available pub- choices for those participating in the In addition, the proposal calls for “SNAP violations are a serious licly at www.regulations.gov. CMN program.” retailers to stock at least six units The 2014 Farm Bill required USDA within each variety, leading to a total Total conventional dairy ad volume down, Fonterra introduces organic milk price but butter up 47 percent, says USDA’s AMS linked to market returns for organic products WASHINGTON — While the total volume earlier but down from $2.36 one year of conventional dairy advertisements ago, AMS says. AUCKLAND, New Zealand — Fon- milk price to organic market returns decreased 6 percent last week from the AMS says natural 1-pound cheese terra has introduced an independent will help us to increase the number of prior week, ads for conventional butter in blocks last week had a weighted average organic milk price linked to market organic farmers.” 1-pound packs increased 47 percent, says advertised price of $3.95, up from $3.07 returns for organic products. Start- Deadman adds that historically, USDA’s Agricultural Marketing Service one week earlier and $3.81 one year ing in June, organic milk payments market prices for organic milk prod- (AMS) in its latest weekly National Dairy earlier, while 2-pound cheese blocks had will refl ect the performance of the ucts have been less volatile than con- Retail Report released Feb. 12. a weighted average advertised price of cooperative’s organic business. ventional milk price products, and the National conventional butter in $6.04, down from $6.33 one week earlier Currently, Fonterra’s organic farm- organic milk price has the potential to 1-pound packs last week had a weighted and $8.07 one year earlier. ers receive a fi xed premium along with provide farmers with more certainty in average had a weighted average adver- Meanwhile, natural 8-ounce cheese the conventional farmgate milk price operating their businesses. tised price of $3.29, down from $3.32 shreds last week had a weighted average for their organic milk production. Or- He says Fonterra recently has one week earlier and $3.62 one year advertised price of $2.22, up from $2.18 one ganic farmers now can choose to move undertaken a series of measures to earlier, AMS says. week earlier but down from $2.47 one year to the new payment approach or stay make organic farming more attractive National conventional varieties of earlier, AMS says, while 1-pound cheese under the existing payment system. for current and prospective farmers, natural 8-ounce cheese blocks last shreds had a weighted average advertised “Organic milk products provide including the establishment of the week had a weighted average advertised price of $3.83, down from $3.99 one week high-value returns for the coopera- Organic Farmers Advisory Group, price of $2.22, up from $2.07 one week earlier and $3.98 one year ago. CMN tive,” says Craig Deadman, Fonterra’s a representative group of organic global business manager for organics. farmers who provide an additional “We want to grow our organics business feedback channel between organic Land O’Lakes, Kraft, Yoplait among most over the long term. Linking the organic farmers and Fonterra. CMN trusted CPG brands, says recent study NEW YORK — Market research fi rm trusted baby formula brands. BrandSpark International recently According to the BrandSpark Proven announced the 2016 BrandSpark Most American Shopper study, 68 percent We Make Technology Trusted Awards winners for Consumer of American shoppers will try new Since 1960 Packaged Goods (CPG) brands. products from the brands they trust The results were based on the an- most, and 67 percent try to purchase Analysis • Direct Protein nual BrandSpark American Shopper their trusted brand names on sale Readout (%) Study, where more than 38,000 shop- rather than buy generic or store brand • High Correlation pers determined the winning brands versions. Practical! with Kjeldahl, Combustion 99+% in 106 categories across four areas: However, 43 percent of respon- food and beverage, health and beauty, dents say they are less loyal to brands • Quick & Easy Ideal for: Cheese, Milk, household, and kids. Conducted be- than they were in the past, making Whey, Yogurt, Permeates, Operation • Affordable tween October and December 2015, it even more important for market- Powders, Soy, Wastewater the study recorded unaided, “top of ers to remind shoppers of the trusted • Precise, Accurate and so much more! and Reproducible mind” responses for categories and relationship they’ve enjoyed with the analyzed reasons people trusted the brand’s product in the past, Brand- “Servicing the Globe” • Customized to Your brands. The results were ranked based Spark says. with quality scientific Needs & Budget on the greatest volume of mentions. Trust was found to be most impor- equipment and backed • Applicable to by our knowledgeable Cheese, Dairy & Among food and beverage brand tant for baby and children’s products and skilled personnel at Many Commodities categories, Land O’Lakes was the and pet food, where three in four UDY Corporation. most trusted in the butter category, shoppers buy the same brand regular- Kraft the most trusted in the cheese ly. In food, butter tops the list with 66 category, Breyers the most trusted in percent regularly sticking with their UDY Corporation the ice cream category, and Yoplait the preferred brand name. Two in three 201 Rome Ct., Ft. Collins, CO 80524 most trusted in the yogurt category. In shoppers also prefer to stick with their PH: 970.482.2060 | FAX: 970.482.2067 the non-dairy milk category, which top brands of yogurt. EMAIL: bill@udyonecom WEB: www.udyone.com was new this year, the Silk brand was For the complete results and named most trusted. In kids brands, more information, visit http://www. For more information please visit www.udyone.com Enfamil and Similac tied as the most brandsparkmosttrusted.com. CMN © 2016 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 19, 2016 — CHEESE MARKET NEWS® 7 NEWS/BUSINESS

2016 World Championship Cheese Contest draws record 2,932 entries, grows 12 percent MADISON, Wis. — The 2016 World yogurt classes. protein yogurt and drinkable cultured in this year’s contest. Championship Cheese Contest, The contest’s growth is refl ected products. The contest is free and open to the which will be held March 7-9, has in several new and returning cheese Nations participating in this year’s public between 9 a.m. and 4 p.m. on drawn a record 2,932 entries from classes, WCMA notes: contest include Australia, Austria, Bel- March 7 and 8 in the Exhibit Hall at 23 nations and 31 states, according • The Natural Snack Cheese class gium, Brazil, Canada, Croatia, Cyprus, the Monona Terrace in Madison, Wis- to the Wisconsin Cheese Makers As- debuted with 33 entries from 16 Denmark, Finland, Germany, Greece, consin. The evening of March 8, WCMA sociation (WCMA), which hosts the companies; Ireland, Italy, Lithuania, Mexico, the and Wisconsin Cheese Originals will biennial event. • With the split of the Asiago class Netherlands, New Zealand, Poland, host a ticketed Cheese Champion “We are proud that our Champi- into Fresh and Aged, Asiago entries Portugal, Spain, Sweden, Switzerland event where the top 16 cheeses will onship Cheese Contests continue to this year increased by 61 percent; and the United Kingdom. be evaluated and the World Champion grow every years says John Umhoefer, • Hard Hispanic cheese entries Additionally, U.S. cheese, butter Cheese will be named. The event will executive director, WCMA. “We thank grew 33 percent to 18 entries; and yogurt entries came from Arizona, include cheese sampling, appetizers the dairy industry for supporting and • Cheese Based Spreads debuted California, Colorado, Connecticut, and an open bar, and proceeds will participating in this year’s competi- with 20 entries; and Georgia, Iowa, Idaho, Illinois, Indiana, benefit the Wisconsin Center for tion.” • Cheeses in the six pepper classes Kansas, Maine, Massachusetts, Michi- Dairy Research and Second Harvest The contest, which has been held grew 59 percent to 145 total entries. gan, Minnesota, Missouri, Nebraska, Foodbank of Southern Wisconsin. every other year since 1957, reached The addition of eight yogurt classes New Jersey, New Mexico, New York, Awards will be given and gold 2,619 entries in 2014. The more than to the World Championship Cheese Ohio, Oregon, Pennsylvania, Rhode medal cheeses will be auctioned April 12-percent growth in this year’s event Contest contributed to entry growth Island, South Dakota, South Carolina, 14 during the International Cheese refl ects the addition of yogurt and in 2016 with 110 yogurt submissions Tennessee, Texas, Utah, Vermont, Technology Expo in Madison. more than 200 new cheeses entered from 21 companies. These classes Washington and Wisconsin. U.S. terri- For more information, visit www. in a record 110 cheese, butter and include yogurt, low-fat yogurt, high- tory Puerto Rico also is participating worldchampioncheese.org. CMN Connecticut lawmakers send letter to urge USTR, USDA to protect common cheese names WASHINGTON — A delegation of D-Conn., Rosa DeLauro, D-Conn., Jim in high demand, and international should be focused on leveling the play- U.S. senators and representatives from Himes, D-Conn., and Elizabeth Esty, trade negotiations shouldn’t be the ing fi eld and breaking down barriers to Connecticut last week sent a letter D-Conn. reason why Connecticut farmers all expand U.S. exports, not making it more urging the Offi ce of the U.S. Trade In their letter, the Connecticut of a sudden can’t sell certain types of diffi cult for local dairy farmers and Representative (USTR) and USDA to delegation emphasize that the EU’s popular, well-recognized products. We cheese producers to compete.” CMN protect Connecticut’s farmers in the implementation of geographical indi- Transatlantic Trade and Investment cations would prevent U.S. companies Partnership (TTIP) agreement by from labeling their products with preventing the European Union from common food names such as “asiago,” imposing barriers to common names “feta” or “gorgonzola,” among others, in the U.S. food labeling system. They and hamper the ability of Connecticut say such barriers could harm Connecti- cheese producers to export their prod- cut farmers and cost the U.S. cheese ucts and compete with EU companies production industry up to $4.2 billion on a level playing fi eld. per year. “Unfairly restricting labels for The letter was signed by U.S. Sens. cheeses like asiago just because it isn’t Chris Murphy, D-Conn., and Richard made in Asiago, Italy, makes no sense,” Blumenthal, D-Conn., and U.S. Reps. the letter says. “Locally-produced John Larson,D-Conn., Joe Courtney, cheese, dairy and other products are

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NAPA study says USDA should reorganize trade-related functions, add new under secretary WASHINGTON — The changing nature three possible reorganization options, Representative; • Employing sound change manage- of agricultural trade provides a “compel- in addition to the status quo. • Defi ning the responsibilities of the ment practices. ling rationale” for a reorganization of The panel’s report identifies a new under secretary positions; In addition, the panel suggests that USDA’s trade-related functions and the preferred reorganization option that • Defi ning the qualifi cations for the Congress consider specifying in legisla- creation of an under sectary for trade it believes will enable a consistent, new under secretary positions; tion the authority of the Secretary of position, according to a new study by the high-level focus and effi cient inter- • Enhancing and institutionalizing Agriculture to undertake the recom- National Academy of Public Administra- agency coordination on trade issues, non-structural mechanisms for inter- mended restructuring. tion (NAPA). while preserving the independence of agency coordination on trade-related To view the report, vis- The study notes that the responsibili- health and safety regulatory processes issues; and it www.napawash.org. CMN ties of USDA have grown and evolved and minimizing disruption to domestic over time in response to changes in the programs and activities. agricultural sector. In order to respond In addition to identifying and evalu- Arla Foods announces structural changes, to these changes, USDA has undergone ating reorganization options, the panel’s anticipates eliminating 500 positions periodic reorganizations throughout its report provides 18 recommendations history. Citing the growing importance intended to enhance the success of the VIBY, Denmark — Arla Foods recently be CFO; Ola Arvidsson will head human and complexity of agricultural trade, department as it addresses current and announced that it plans make structural resources and corporate affairs; Hanne as part of the Agricultural Act of 2014, evolving issues related to agriculture changes, including the formation of a Søndergaard will head marketing and Congress mandated that the Secretary and agricultural trade in particular. new executive management team and innovation; Peter Giørtz-Carlsen will of Agriculture develop a plan to create The panel recommends that the new the creation of a more effi cient and head the Europe commercial markets; a new under secretary position focused trade-focused under secretary portfolio globally-focused structure. and Tim Ørting Jørgensen will head on trade-related issues. include three parts: the Foreign Agricul- The changes follow Arla’s announce- the international commercial markets. The Agricultural Act of 2014 di- tural Service; all the components of the ment in December of its Strategy 2020, rected the department to contract with Agricultural Marketing Service that sup- which focuses on growing the company’s NAPA to assist in developing a plan for port trade through market development, business in eight global dairy categories reorganizing the department with the including quality standards and product and six market regions. “We need to act local goal of enhancing the department’s differentiation, in their entirety; and Arla says its new structural organiza- leadership and coordination on trade- the Federal Grain Inspection Service. tion will drive effi ciencies through faster and think global, and related issues. The panel’s recommended option decision-making and execution in more the new organization To undertake this study, NAPA con- also would create a new under secretary globalized supporting functions such vened an expert panel of fi ve fellows portfolio that includes the Animal and as supply chain, fi nance and human refl ects this.” to identify and evaluate reorganization Plant Health Inspection Service (APHIS) resources, and develop more collab- options and provide guidance on how and the Food Safety Inspection Service orative ways of working and reducing Peder Tuborgh the panel’s preferred reorganization (FSIS). The panel believes that moving duplication across countries. ARLA FOODS option could be implemented. APHIS and FSIS into the same under sec- As a result of these changes, Arla says NAPA notes after careful consid- retary portfolio will strengthen the United it anticipates eliminating 500 positions, eration of external and some internal State’s reputation for science-based regu- and the company will be consulting with stakeholder views and the current lation while enhancing mission-critical any affected personnel as soon as possible. Main structural changes include: state of agricultural trade, the panel synergies between APHIS and FSIS. Arla CEO Peder Tuborgh has as- • Marketing and innovation is concluded that the changing nature of While the structural changes in the sembled a new executive management elevated to a place in the executive agricultural trade provided a compel- recommended option are important, the team that is reduced from nine to seven management team to deliver global ling rationale for a reorganization of panel believes success also depends on members. Tuborgh will be CEO and head brand growth and category leadership; USDA’s trade-related functions and the following: of milk, members and trading; Povl • Two commercial areas are formed the creation of a new under secretary • Ensuring a clear division of respon- Krogsgaard will be vice CEO and head of in the executive management team — focused on trade. The panel reviewed sibilities between USDA and U.S. Trade global supply chain; Natalie Knight will Europe and international — leaving country managements with strength- ened commercial focus on customers, ,1129$7,9( 352&(6662/87,216 (1*,1((5('5,*+7 consumers and categories; • One global supply chain and one Š global milk pool are created; 7KH5(/&2Š (=$&&(66Š 'HFN )HDWXUHVRIWKH(=$&&(66 'HFN • The organizational structure is ZDVGHYHORSHGWRUHGXFHSHUVRQQHOUVRQQHO • 6HOIGUDLQLQJRSHQVDQLWDU\GHVLJQ6HOIGUDLQLQJRS streamlined with resources prioritized to LQMXULHVWKDWRFFXUZKHQZRUNLQJRUNLQJ • 3QHXPDWLFOLIWWRUDLVHDQGORZHU3QHXPDWLFOLIWWR support the Strategy 2020 work streams. DURXQGPDQZD\VDQGRQWRSRIPLONRIPLON GURSGHFNZLWKSRVLWLRQLQJYDOYHGURSGHFNZLWKS Arla says the executive management team will work with their individual WUXFNWDQNV7KH(=$&&(66(66Š • 'URSGHFNUHWUDFWVWRGHJUHH'URSGHFNUHWUDF teams to agree how best to deliver the 6\VWHPSURYLGHVRSHUDWRUVDQGVDQG YHUWLFDOSRVLWLRQIRUFOHDUDQFHRIYHUWLFDOSRVLWLRQI WUXFNPLUURUVDQGH[KDXVWVWDFNVWUXFNPLUURUVDQG 2016 business plan and the 2020 RWKHUSHUVRQQHOZLWKVDIH26+$26+$ strategy. The company anticipates any • FRPSOLDQWDFFHVVWRWDQNRSHQLQJVHQLQJV &XVWRPGHVLJQHGWRILW\RXU&XVWRPGHVLJQH resulting changes in the organization DSSOLFDWLRQDSSOLFDWLRQ will be confi rmed by April 1. Arla’s goal is to increase the organic revenue growth rate from 2 percent to at least 4 percent by 2020. “This is a fundamental change for the company,” Tuborgh says. “For many years, Arla has grown mainly through cooperative mergers where the new milk already had a position in the market. Our continued success depends on our organization’s abil- ity to increase the value and develop profi table positions for the growing Š 7+(5(/&2 $'9$17$*( milk volumes coming in now from 86$_7KH1HWKHUODQGV_1HZ=HDODQG__ZZZUHOFRQHW our existing farmer-owners. We need to act local and think global, and the For more information please visit www.relco.net new organization refl ects this.” CMN © 2016 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 19, 2016 — CHEESE MARKET NEWS® 9 NEWS/BUSINESS

R&G Cheese Makers sets March completion date for new creamery in Troy, New York

By Chelsey Dequaine the March completion date in sight. but construction was delayed due to we couldn’t in our old space,” O’Connor “We’ve been in our beginning plant fi nancing and ensuring the building says. “We were so anxious to start our COHOES, N.Y. — R&G Cheese Makers for seven years, and we outgrew it the would meet state regulations. Construc- business that, after seven years of de- began the process of building its new day we moved in,” he says. “I’m fi nally tion began in fall 2015. veloping a wish list, we will have a plant Troy, New York, creamery two years ago. allowing myself to get excited about it.” Currently, two full-time employees we are more visually proud of.” With coolers being added this week, R&G Cheese Makers, named after help produce R&G’s cheese offerings, O’Connor looks forward to inviting Sean O’Connor, president and head O’Connor’s sons Ryan and Gavin, cur- including a handmade line of Mozza- the public for tours and tastings more cheesemaker, says he feels relief with rently operates in a 500-square-foot rella, nine fl avors of fresh goat cheeses, often than he was able to at the old space in Cohoes, New York. The new a line of ripened goat cheeses, hard creamery. Troy creamery will give the company cheeses, Cheddar and blue cheeses. “It will allow us to be more hands Arla Foods enters 4,000 square feet of operating space. In the new plant, O’Connor will add on with the public, rather than go- contract with Asda “I grew up in Troy, and it has always two full-time and part-time employees. ing to an event to meet them,” he had a northeast industrial city feel, but With enough space for an aging facil- says. “We’ve gotten such a great for British milk now it has a hip feeling to it,” O’Connor ity, R&G also will produce long-aged reception from the city government LEEDS, England — Arla Foods UK says. “We were itching to get more di- cheeses. and residents — responses I never recently announced it has entered a rectly in line with that.” “The main goal is increasing ef- thought would happen. That has gotten new three-year contract with Asda to R&G found the new property in 2014, fi ciency and moving in new machines us excited to make the move.” CMN supply the retailer’s own brand of milk and cream. The new agreement allows Asda to source more than 1.5 billion liters of British milk from the Arla dairy cooperative. Last year, Asda was the fi rst major grocery retailer to carry Arla’s “respon- sibly sourced farmer-owned” marque on its online and in-store packaging. This most recent contract ensures that the partnership will continue until 2019 to provide Arla farmer owners with a sus- tainable home for their milk, Arla says. “This is welcome news, and we value Asda’s continued support for our dairy farmers,” says Peter Giørtz-Carlsen, executive vice president, Arla Foods INTERNATIONAL CHEESE TECHNOLOGY EXPO UK. “This demonstrates that we need to develop our industry by partnering with Every two years the cheese industry our retail customers and adding value. gathers to share technology, knowledge We look forward to working further with Asda and supporting their commitment and a passion for cheesemaking JOIN US. to our owners.” In addition to this new contract, Arla says Asda is increasing its support by extending the Asda DairyLink groups, • Exhibits are FREE to EARLY REGISTRATION RATE EXTENDED TO FEB 26! where it has been working directly with Dairy Manufacturers! Arla farmer owners to improve animal Opening Address: David Ahlem welfare, reducing carbon footprint and • Awarding winners CEO and President of Hilmar Cheese Company, Inc. increasing effi ciency on the farm. CMN in the 2016 World World Class Seminars Championship A Converter’s Dream: Cheese Quality for the End User Cheese Contest Fuel Up to Play 60, Meeting the Challenges: Food Safety for Cheese USDA award $35M • More than 500 Whey from Vat to Bag: Quality and Marketing in school grants supplier booths Processing Wastewater for a Clean Environment ROSEMONT, Ill. — USDA and the dairy farmer-founded Fuel Up to Play 60 program have announced they will provide $35 million in grants to help schools nationwide upgrade kitchen equipment and infrastructure to help provide students better access to healthy foods, including dairy. “These grants will go far in helping thousands of schools that face a daily DAIR R Y R O E F S R E E A

reality that students often arrive hungry, T R APRIL 12–14, 2016

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C which impacts their ability to learn,” PRESENTED BY: WISCONSIN CENTER CDR says Paul Rovey, Arizona dairy farmer MILWAUKEE, WI USA and chairman of Dairy Management Inc., which manages the national dairy checkoff. According to Fuel Up to Play 60, the program has reached students in VISIT CHEESEEXPO.ORG FOR MORE INFORMATION 73,000 schools. It was created by dairy farmers and the National Football League with support from USDA. CMN For more information please visit www.cheeseexpo.org © 2016 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 19, 2016 PEOPLE EVENTS

Agriculture Deputy Secretary Harden to Arizona Agricultural Experience to be retire from USDA at the end of February March 8-10, will raise funds for youth WASHINGTON — Agriculture Deputy Relations. As the Secretary’s Chief of CASA GRANDE, Ariz. — Pinal 40 Stanfi eld, Arizona; and Ehrmann Dairy Secretary Krysta Harden has announced Staff, she says she had the pleasure Foundation, a nonprofi t, has announced Yogurt Plant, Casa Grande, Arizona. her plans to depart USDA at the end of of working with many talented USDA the 2016 Arizona Agricultural Experi- The tour will be followed by a welcome February 2016. employees who have dedicated their ence will be March 8-10 in Casa Grande, reception and dinner. “I am proud of what our department lives to helping rural America thrive. Arizona. On March 9, attendees can par- has accomplished since 2009 to bring “As deputy secretary, I am proud to According to Pinal 40 Foundation, ticipate in educational seminars, a golf economic opportunity that will help lead the implementation of the 2014 Farm the inaugural event in 2015 raised tournament at San Marcos Golf Course rural America thrive for generations Bill,” Harden says. “My work at USDA on more than $180,000, which was given or attend a Cactus League spring train- to come,” Harden says. behalf of our farmers, ranchers, producers as agricultural-related scholarships ing baseball game. Harden says she began her service and rural communities has been the great- to students, Boys and Girls Clubs and On March 10, attendees can attend a to USDA in the Offi ce of Congressional est honor of my professional life.” CMN other agricultural and youth oriented St. Patrick’s Day Party in Casa Grande, organizations. Arizona, where equipment from RDO On March 8, the event will include Equipment Co. will be on display. Comings and goings … comings and goings an agricultural tour to Shamrock For more information, visit Farms, Phoenix; T&K Red River Dairy, http://azagexperience.org. CMN Americold, Atlanta, has announced consin. Kraszewski’s responsibilities Fred Boehler, formerly the company’s include overseeing all aspects of the president and chief operating offi cer, industrial ingredients lab and assist- Cornell to offer fi ve Regional Laboratory has been appointed to the role of ing the vice president of research and Seminars March 22-30 across New York president and CEO. Boehler also has development in formulating and initi- ITHACA, N.Y. — The Laboratory new/future requirements for drug been appointed to Americold’s board ating new programs and procedures. Practices Committee of the New residue testing under appendix N; of trustees. Prior to joining Americold, Sargento Foods Inc., Plymouth, York State Association for Food and an FDA/National Conference on Boehler served as senior vice president Wisconsin, has announced Lynn Webb Protection, New York State Depart- Interstate Milk Shipments/New York of Supply Chain with SUPERVALU Inc. as national account sales manager. ment of Agriculture and Markets and state update. Bossar USA, Lawrenceville, Geor- Webb previously was national customer Cornell University again will offer The dates and locations of the gia, has appointed Alex Marzo as its business manager in the consumer fi ve Regional Laboratory Seminars seminars are: March 22, Cortland, New new general manager. Marzo takes over products division, a position she held March 22-30. The programs are de- York; March 23, Canton, New York; the role from Charlotte Koellner, who since joining Sargento Foods in Sep- signed for those actively working March 24, Batavia, New York; March announced her retirement in December. tember 2013. Sargento Foods also has in dairy product testing and quality 29, Plainview, New York; and March Kahala Brands, Scottsdale, Ari- announced Lauren Farr as a sales assurance programs, but may be of 30, Albany, New York. zona, has announced Dr. Maya War- analyst and Erin Johnson as customer interest to others including certifi ed Preregistration is required. The ren is joining its team as tastemaster business manager in the consumer prod- milk inspectors and plant receivers. registration fee for each seminar is and food scientist for portfolio brands ucts division. In Farr’s newly created Topics will include an overview and $20. Cold Stone Creamery and Pinkberry. position, she will support the Kroger update of the profi ciency/split sample For more information, email In her role with Kahala Brands, the sales team, the Kroger headquarters program; a discussion on pathogen [email protected], company says to expect to see Warren and will lead in division engagement environmental monitoring (PEM) [email protected] or visit http:// in the spotlight promoting new fl avors, and business development. Johnson programs; detailed information on bit.ly/CornellLabSeminars. CMN as well as mainstay customer favorites. will be responsible for the Sam’s Club AnnMarie Kraszewski has been and BJ’s Wholesale Club accounts named research and development and will manage the sale of Sargento CheeseTopia 2016 to be April 10 in Chicago lab manager, industrial ingredients Foods products, the development of division, for Wixon, St. Francis, Wis- markets and customer relations. CMN CHICAGO — CheeseTopia 2016, pre- Cheese Originals, will be April 10 at sented by Roth Cheese and Wisconsin the Skyline Loft at the Bridgeport Arts Center in Chicago. Wisconsin Cheese Originals says the festival brings the best of Midwest artisan and farmstead cheeses to a dif- ferent city each year. Attendees have the opportunity to meet, greet, sample and purchase cheeses from 50 artisan producers from around the Great Lakes Region. Participating cheesemakers in- clude: Alemar Cheese Co., Mankato, Minnesota; BelGioioso Cheese, Green cheese – our wolrd Bay, Wisconsin; Burnett Dairy Coop- erative, Grantsburg, Wisconsin; Carr Pre-Drainage, Automatic Filling and De-Moulding of 6.5 feet long Moulds for the Production of 4.5 feet long Muenster, Havarti or Brick Cheeses Valley Cheese, LaValle, Wisconsin; Clock Shadow Creamery, Milwaukee, Wisconsin; Emmi Roth USA, Monroe, Wisconsin; Marieke Gouda, Thorp, Wisconsin; Klondike Cheese, Monroe, Wisconsin; Sartori Company, Plymouth, Wisconsin; and Uplands Cheese, Dod- geville, Wisconsin. Tickets are $75 each and can be bought at https://www.wicheesefest. Pre-drainage and filling 4.5 feet long Muenster, com/store/cheesetopia-2016. New this of cheese curd into De-moulding of 4.5 feet long cheeses Havarti , Brick Cheeses year , tickets include open bar with free 6.5 feet long moulds by gravity into a water bath wine, beer and soda. For more information, visit http:// www.wisconsincheeseoriginals. com/cheesetopia-festival/. CMN For more information please visit www.alpma.com © 2016 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 19, 2016 — CHEESE MARKET NEWS® 11 EVENTS

Wisconsin Cheese Makers Association launches workshop for artisan cheesemakers MADISON, Wis. — The Wisconsin director, WCMA. “We’re pleased to of- “This seminar will be an excellent elli Cheese. After the cheesemaking Cheese Makers Association (WCMA), fer this workshop and grateful to those opportunity for artisan cheesemakers, process, participants will be treated to in conjunction with the Wisconsin industry veterans who are generously beginners and experienced, to learn a cheese tasting and sensory analysis Center for Dairy Research (CDR), sharing their knowledge with skilled more about the science and savoir-faire guided by Patrick Polowsky, sensory will launch the Artisan Cheesemak- artisans.” of artisan cheeses,” Coudé says. coordinator at CDR. ers Master Workshop April 12-14. The Seminars April 13 will focus on On April 14, cheesemakers will be The reduced rate for the fi rst 25 par- training will run concurrently with the rennet options, techniques for smear- bussed to Clock Shadow Creamery in ticipants is $195. After, WCMA member International Cheese Technology Expo ripened and washed-rind cheese, the Milwaukee where experts will lead registration by Feb. 26 is $405 and $495 at the Wisconsin Center in Milwaukee. creation of Spanish and Portuguese them in a hands-on production of for nonmembers. After Feb. 26, WCMA According to WCMA, the training cheeses and the art and science of Portuguese-style hard cheese made with member registration is $450 and $550 will give participants access to in- cheese affi nage. Presenters include 100 percent sheep’s milk and thistle for nonmembers. Registrants must be dustry leaders and an opportunity to Bénédicte Coudé, associate researcher, rennet, as well as a Requesón-style active cheesemakers and will be ap- work directly “at the vat” with master cheese industry and applications group, cheese. Vat-side discussion will be led by proved for the workshop. Fees include cheesemakers. CDR; John Jaeggi, cheese industry and previous presenters and Bob Wills, head complete access to the workshop and “For an up-and-coming artisan chee- applications coordinator, CDR; Thomas cheesemaker, Clock Shadow Creamery; all facets of the International Cheese semaker, there’s no better chance to Milhoua, technical engineer for Air Gary Grossen, master cheesemaker at Technology Expo. network and learn from the industry’s Quality Process of France; and Marianna Babcock Hall Dairy; and Chris Roelli, For more information, call 608-286- best,” says John Umhoefer, executive Marques de Almeida, cheese specialist. Wisconsin master cheesemaker at Ro- 5803 or visit www.cheeseexpo.org. CMN Challenges, opportunities to be addressed at ADPI/ABI conference April 24-26 in Chicago ELMHURST, Ill. — The American Club in Lemont, Illinois. The $125 2017 International Whey Conference board of directors meeting; an industry Dairy Products Institute (ADPI) and registration fee includes the green fee, will be made. luncheon; the ABI board of directors American Butter Institute’s (ABI) 2016 cart, lunch and transportation. At 5:30 Speakers April 25 include: Doug Wil- meeting; and industry briefi ngs. annual conference will be April 24-26 p.m., conference welcome reception ke, president, ADPI, and vice president Speakers/panelists April 26 include: at the Hyatt Regency Chicago. The will begin. of marketing and technology, Foremost Dave Thomas, CEO, ADPI; David conference program will address the On April 25, the conference in- Farms, USA; Irv Holmes, president, Ahlem, Hilmar Cheese; Jon Davis, Da- manufactured dairy product industry’s cludes an opening session continental ABI, and CEO and president, Challenge visco; Michael Doyle, Foremost Farms; latest challenges, obstacles and oppor- breakfast, the ADPI affi liate committee Dairy Products Inc.; and Autumn Veazey Kevin Ellis, Cayuga Milk Ingredients; tunities with presentations from speak- meeting, industry briefi ngs, exhibits Price, vice president of government and Phil Tong, professor of dairy sci- ers, including industry executives, gov- and the Grand Chicago Reception. relations, Land O’Lakes Inc. ence, Cal Poly, and ADPI Center for ernment offi cials and academia. During the luncheon, the recipients Sessions April 25 include: Lactose Excellence member. On April 24, a bus will leave the of ADPI’s Award of Merit and Jim Task Force Briefi ng; Permeate Brief- For more information, visit https:// Hyatt Regency Chicago for the ADPI Page Memorial Scholarship will be ing; Dairy Market Outlook for 2016 and www.adpi.org/Events/2016ADPIABIA golf outing at Ruffl ed Feathers Golf announced and a presentation on the Beyond; Dairy Ingredient Marketing nnualConference/tabid/110/Default. Committee Briefi ng; and the Alterna- aspx. For more information, visit tive Cheese Color Task Force Briefi ng. https://www.adpi.org/Events/2016AD Between the Bluffs Beer, Wine and Cheese On April 26, the conference includes PIABIAnnualConference/tabid/110/ Festival April 23 seeks cheese vendors a dairy industry breakfast; a senior Default.aspx. leadership panel: Challenges and Op- For sponsorship opportu- LA CROSSE, Wis. — The La Crosse “The 2016 fest offers more tasting portunities in the Dairy Industry; exhib- nities, visit http://www.adpi.org/ Area Convention and Visitors Bureau opportunities than ever before, with its; a panel discussion: Emerging Dairy Portals/0/16annualmeeting/Spon- has announced the Between the Bluffs over 200 quality beers, 45 types of Ingredients – What’s on the Horizon?; sorshipBooklet_Updated%20on%20 Beer, Wine and Cheese Festival will be wine and numerous gourmet cheeses the ADPI annual business meeting and Jan%2012_enduser.pdf. CMN April 23. The bureau says the festival from around the state of Wisconsin,” currently is seeking cheese vendors and says the La Crosse Area Convention will pay up to $450 for product. and Visitors Bureau. According to the bureau, the fes- For more information or reg- tival is the annual celebration of ar- ister, visit http://www.explorela- From the Brine or tisanal cheesemakers, craft brewers crosse.com/bluffs-beer-wine- and vintners from across the country. cheese-festival/?hvid=R6VCT. CMN Tower to the Pallet Automation Solutions

DMaP offers 23rd National Workshop for Robotic Cells

Dairy Economists, Policy Analysts May 2-3 Vision Systems

MADISON, Wis. — Dairy Markets Markets: Aligning Regional Supply Engineering & and Policy (DMaP) will host its 23rd and Global Demand in Dairy Markets; Design Services Annual National Workshop for Dairy Global Perspectives on Milk Produc- Economists and Policy Analysts May tion, Dairy Demand, Prices and Risk; 40 lb. Block Cheese 2-3 (an optional bus tour of two farms and Pathways to Progress in the Dairy Palletizing and two dairy processing/marketing Industry. ‡Proven Technology businesses will be May 4) at the Hyatt The registration fee for the program ‡Eliminates Safety/Ergonomic Regency Hotel and Conference Center is $380, and the deadline to register is Issues in Buffalo, New York. April 29. The registration fee for the bus ‡Built to Last – Minimize Downtime Sessions include: Long-Term Per- tour May 4 is an additional $50. ‡Increases Your Productivity – spectives on U.S. Dairy Markets: De- For more information, visit 20 Blocks Per Minute mand Opportunities and Challenges; http://dairymarkets.org/Workshop ‡Designed Within Your Budget Long-Term Perspectives on U.S. Dairy s/2016Buffalo/. CMN Contact Us! A great place to work with people committed to excellence, creating positive Phone: 920-662-1682 memorable experiences by providing Toll Free: 877-ZEPNICK “Personalized Automation Solutions.” [email protected]

For more information please visit www.zepnick.com © 2016 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 19, 2016 NEWS/BUSINESS

HR each generation in the workforce. subject to reduction because of varia- employers: Silents/Matures are about respect, tions in the quality or quantity of work • Proactively assess current wage Continued from page 1 he says. It is important to ask questions performed. and hour practices to determine and listen, provide clear written goals While there currently are no pro- operational and fi nancial impact of learning and development manager for and expectations, and to be honest posed revisions to the “duties” tests, increased salaries; MRA-The Management Association, a and candid. there may be changes in a fi nal rule, • Consider changes to staffi ng or nonprofi t trade association. Baby Boomers, used to “running Nickels says. salary levels; Marris provided an overview of the show,” need frequent and specifi c DOL has proposed a compensation • Analyze staffing patterns to the generations that comprise today’s recognition for their work, Marris says. increase to minimum salaries in 2016. maximize effi ciency and eliminate workforce and the challenges that can It is important to show them you care Nickels notes a comment period on unnecessary hours; arise among employees with different and to be honest, candid and direct. the proposed rule closed in September • Prepare fi nancial forecasting/ value systems. Meanwhile, Gen Xers have some- 2015. DOL received nearly 300,000 budgeting models to account for in- Marris focused on four generations what of a “prove it to me” mentality, comments underscoring a sharp divide creased overtime expenditures; in the workforce today: Marris says. They believe in work/life in opinion. • Revise policies or more closely • “Silents/Matures,” making up just balance, and value feedback that is Major concerns include that the monitor and manage hours worked to 2 percent of the workforce, are those truthful, trustworthy and direct, while salary level does not account for mar- minimize overtime exposure; and born in 1945 or earlier. millennials, who thrive on “instant ket differences, and there could be • Hire additional workers to mini- • “Baby Boomers,” comprising 29 gratifi cation,” need frequent and in- decreased morale for employees who mize overtime expenses. percent of the workforce, are those stant feedback, he says. Millennials use are reclassifi ed as non-exempt, as well Nickels also provided an overview born between 1946 and 1964. technology to the max and are heavy as increased employer monitoring of of the benefi ts of utilizing independent • “Gen Xers,” making up 34 per- on negotiating work/life “blending,” hours worked to control overtime costs, contractors, as well as legal parameters cent of the workforce, are those born he adds. Nickels says. surrounding their employment. In ad- between 1965 and 1979. “Every generation overcorrects for He notes that issues under further dition, he shared an overview of the • “Millennials” — comprising 35 what it views as the ‘sins’ of the previ- consideration that may be included in Americans With Disabilities Act, FMLA percent of the workforce and grow- ous one,” Marris says. the fi nal rule include whether bonuses and worker’s comp law. ing — are those born between 1980 “By 2025, millennials will comprise may count toward salary; changes to the The meeting wrapped up with a and 2000. 75 percent of the workforce,” he adds. duties test; and the timing of possible panel discussion with the three pre- Marris adds that the generation “Will you be ready?” implementation. senters. Attendees asked clarifying following millennials also is now just • Employment law The DOL fi nal rule is expected in questions about employee handbooks beginning to enter the workforce as Finally, Christopher L. Nickels, mid-2016, after which changes will and employment law, and also com- they approach age 16. attorney, Quarles & Brady LLP, which take effect, Nickels notes. However, mented on generational challenges in He notes that it’s important to “fl ex” specializes in employment litigation, actual implementation may be delayed the workplace. to the needs of co-workers from other outlined key labor and employment law if businesses or trade groups fi le suit “If there’s one thing we can generations to maximize productiv- issues that companies need to be aware to block. work on, it’s listening skills,” Mar- ity and communication effectiveness, of, particularly what they should do in To prepare for these potential ris says. “We want engagement keeping in mind four principles — response to changing rules regarding changes, Nickels recommends that versus simply compliance.” CMN every generation assumes others want overtime and independent contractor what they want to be successful; every status. generation has an expectation that One of the biggest issues facing OUTLOOK faster than U.S. population growth over whatever the fi rst generation had to employers today is DOL’s proposed the next decade. Demand for cheese Continued from page 1 work through, the next will also; every compensation increases for overtime is expected to rise due to greater generation believes the next genera- exemption tests. consumption of prepared foods and tion has it easier; and every generation Nickels notes this applies only years will result in favorable returns increased away-from-home eating. rebels at some point and later gives up to “white collar” exempt employees, for producers and provide economic Butter demand also is expected to visible signs of rebellion but not the including executive, administrative, incentives for continued expansion. grow, in part due to the phase-out of elements of their value system. professional and computer employees. Domestic demand will grow at a trans fats. The decline in per-capita Marris recommends keeping these They must still meet a primary job strong pace, USDA says, with com- fl uid milk consumption is expected strategies in mind when working with “duties test,” and their salary is not mercial use of dairy products rising to continue. Commercial exports of U.S. dairy products declined in 2015, mostly due to lower demand from China and greater competition from the Euro- pean Union as a result of the Russian trade ban, USDA says. However, U.S. exports are projected to recover and expand over the next decade, led by greater exports of products that are high in nonfat milk solids, such as nonfat dry milk. U.S. dairy exports are projected to reach record levels on both a milkfat and a skim-solids basis. Production increases in other major dairy exporting countries are expected to lag in growth compared to global import demand. USDA says nominal farm-level milk prices are projected to decline through 2018 as lower feed costs encourage increased production. Prices then are expected to rise faster than general infl ation over the rest of the projec- tion period, largely on the strength of export market gains. To read the full report, visit http://ers.usda.gov/publications/ oce-usda-agricultural-projections/ For more information please visit www.ivarsoninc.com oce-2016-1.aspx. CMN © 2016 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 19, 2016 — CHEESE MARKET NEWS® 13 CLASSIFIED ADVERTISING

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Call Ann Marie at 920.921.9449 Dairy Products Marketing Co., Inc. [email protected] www.dairyproductsmarketing.com

For more information please visit www.dairyproductsmarketing.com © 2016 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 19, 2016 NEWS/BUSINESS

Artisan Specialty Foods opens 28,000-square-foot Specialty Foodservice Distribution facility BONITA SPRINGS, Fla. — Artisan “The new customized build out, inte- “I expect this expansion of Artisan of Artisan’s unique business model Specialty Foods, a wholly-owned sub- gration and warehouse transition to this Specialty’s capabilities and offerings into additional specialty food verti- sidiary of Innovative Food Holdings, has new facility went seamlessly due to the will open the door for the growth cals and markets,” he says. CMN launched its new 28,000-square-foot dis- hard work of our talented and dedicated tribution facility in Broadview, Illinois. team at Artisan Specialty foods,” says Jus- The Broadview facility was purchased tin Wiernasz, president, Innovative Food Gay Lea Foods unveils new initiatives in July 2015 and built to meet Artisan’s Holdings. “We continue to see strength in to grow dairy goat industry in Ontario custom specifications, the company the business and expect this distribution says, and its location and size enables facility to help drive growth with our cur- MISSISSAUGA, Ontario, Canada — producer members of the cooperative. it to better serve its customers in Metro rent local chefs and customers and to help Gay Lea Foods Co-operative Ltd. has Gay Lea Foods says it also has made Chicago and the surrounding areas. facilitate further national sales growth announced two new initiatives to grow a further investment in goat processing Artisan Specialty Foods also says the across Innovative Foods’ subsidiaries.” and strengthen the goat industry in with the purchase of a minority share greater capacity allows it to introduce Wiernasz also says the facility provides Ontario. in Mariposa Dairy Ltd., a goat cheese- a wider range of products that are re- the opportunity to service the growing At its recent annual meeting, maker located in Ontario, Canada. packed or private labeled and allows for number of chefs in the Greater Chicago delegates approved bylaw changes to The company says this further growth in stocked inventory for all prod- area who are seeking artisanal specialty expand the co-op’s open membership demonstrates its commitment to be an ucts, including products sold nationally. and local, farm-to-table products. to include dairy goat producers as active investor and partner to develop the dairy goat value chain in Ontario. “As a dairy cooperative, Gay Lea Foods is well positioned to understand both the goat farming priorities and the need for development of innovative, high quality and safe products to meet the demand and market opportunities for goat milk products,” says Michael Bar- rett, president and CEO, Gay Lea Foods. “Welcoming new dairy goat producer members and the investment in Mariposa Dairy Ltd. further strengthen the position of Ontario agri-food as a leader in both domestic and international markets.” Gay Lea Foods is the fi rst Canadian co-operative to have both licensed dairy cow and dairy goat members. CMN

More News, We fill our newspaper each week U.S. milk goat More Solutions, with news “that is all about YOU.” inventory up 3 The weekly news coverage and support you receive from percent from 2015 More Choices! CHEESE MARKET NEWS is WASHINGTON — The U.S. milk goat unmatched in the industry. inventory as of Jan. 1, 2016, was 375,000 Choose the Best... We take serious news, add in analysis, head, up 10,000 head, or 3 percent, from attention to detail, passion and integrity a year earlier, according to the annual Cheese Market News. to deliver the highest level of coverage “Sheep and Goats” report recently re- and service in the cheese business! leased by USDA’s National Agricultural Because the Right Statistics Service (NASS). News Matters! Call us today to discuss Wisconsin leads the nation in milk your marketing needs or goat numbers, standing at 44,000 head to subscribe. as of Jan. 1, 2016, unchanged from a year earlier. California is second, with 39,000 head of milk goats, down 2 percent from Jan. 1, 2015, NASS says. Rounding out the top 10 milk goat states and regions are: • Iowa, with 33,000 head as of Jan. 1, 2016, up 6 percent from a year earlier; CHEESE MARKET NEWS® SUBSCRIPTION FORM: • Texas, with 22,000 head, down 4 1 Year Rates (52 issues) 2 Year Rates (104 issues) ELECTRONIC 1 Year Rates (52 issues) percent; 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) • New England (including Con- F $330 (International) F $525 (International) F $210 (Email With 2nd Class Mail Service Only)

FRAUD of adulteration and truth in labeling. is in the best interest of consumers and the agency wrote: “Your product labels However, Bloomberg took the initiative the dairy industry,” he says. declare that the products are parmesan Continued from page 1 to go to market and test cheeses, and its In a move to address the issue, Arthur cheese or romano cheese, but they are results showed the extent of the issue. Schuman Inc. in November unveiled a in fact a mixture of trimmings of various According to Bloomberg, however, “Bloomberg’s independent actions new True Cheese seal, the industry’s cheeses and other ingredients. In addi- several varieties of grated Parmesan coupled with quotes from FDA and fi rst trust mark for quality assurance in tion, your parmesan cheese products do cheese at retail tested positive for a pending litigation added a strong cheesemaking. The seal is intended to not contain any parmesan cheese.” (See amounts of cellulose above 4 percent, appeal to the story,” he says. “And, verify the integrity and quality of cheese “Criminal complaints allege compa- and some did not list cellulose as an we have entered a period of broad that companies like Arthur Schuman nies profi ted from selling misbranded, ingredient on the label. consumer sentiment and preference market, and to assist both consumers imitation cheese” in the Oct. 30, 2015, “It is disappointing to learn of this where transparency, truth in labeling and wholesale buyers in selecting real issue of Cheese Market News.) situation because we have long worked and higher quality are paramount in cheese made without excessive fi llers Myrter is set to plead guilty to to assure that consumers could buy the foods people buy.” and unwanted non-cheese ingredients. criminal charges. She faces up to a wholesome, safe and honest products The International Dairy Foods As- (See “ASI says new True Cheese seal year in prison and a $100,000 fi ne, news — that’s at the core of everything we sociation (IDFA) brought the issue to will help combat adulteration, fraud in reports say. stand for in the dairy industry,” says light in a July 2013 letter to “Parmesan Italian category” in the Nov. 20, 2015, Bob Wheatley, CEO of Emergent Patrick Geoghegan, senior vice presi- Cheese Purchasers.” issue of Cheese Market News.) Healthy Living, which manages commu- dent of corporate communications for In the letter, IDFA President and John Umhoefer, executive director nications for Arthur Schuman, says the the Wisconsin Milk Marketing Board. CEO Connie Tipton says that, on behalf of the Wisconsin Cheese Makers As- important next step for the industry is The issue is one of growing concern of the National Cheese Institute, she is sociation, says one message that needs the deployment of the True Cheese logo for long-established hard Italian chee- alerting purchasers to a concern that to be clear to consumers is that the to provide consumers with “validation semakers and importers like Arthur some cheese being labeled and sold as adulterated cheeses in question are and assurance that what they’re buying Schuman Inc. who want to hold the Parmesan does not meet FDA’s federal not “real” Parmesan. is labeled correctly and is compliant.” industry to a higher standard. Arthur standard of identity for products offered However, consumers are in a hurry, “If there’s an important point to Schuman estimates that of the ap- for sale as Parmesan. skimming stories and headlines, and are make here as a call to action, ASI proximately 463 million pounds of “Under this standard, it is particu- not necessarily making that distinction, believes the trust mark is essential to Italian hard cheeses sold in the United larly important that cheese being sold he adds. validate quality, truth in labeling and States each year, more than 90 million as Parmesan contains only Parmesan He says the issue makes the True CFR compliance,” Wheatley says. “Thus, pounds — mostly in grated forms sold in cheese (no other types of cheese can Cheese seal an important tool for the it closes the loop with consumers so canisters — is adulterated with exces- be added), meets the required moisture industry. they know what they’re getting. True sive levels of starches, fi llers and even content (not more than 32 percent), Meanwhile, the U.S. government Cheese is the next chapter in assurance vegetable oil-based imitation cheese. contains not less than 32 percent is taking action against some of the of quality and integrity.” Neal Schuman, CEO, Arthur of milkfat, is aged for the required alleged offenders. Schuman says that while there may Schuman Inc., notes that while the 10-month time period, uses no unap- The U.S. Attorney’s Offi ce last year be a short-term dislocation of some of the issue has been in the media for some proved additives or ingredients and fi led criminal charges in the West- dry grated Parmesan cheese business, the time, previous coverage focused largely is otherwise processed in the manner ern District of Pennsylvania against long-term benefi ts of consumers getting on the educational aspect of issues specifi ed in the standard of identity,” Universal Cheese & Drying Inc. and compliant, properly labeled cheese, with Tipton writes. (See “Italian cheese International Packing LLC, both based less fi llers, will be positive for the future marketing fraud spotlighted by U.S. in Slippery Rock, Pennsylvania, as well of the hard cheese business and enable it ALCAM stakeholders” in the Sept. 4, 2015, issue as Michelle Myrter for the alleged intro- to grow at higher rates than the industry of Cheese Market News.) duction of misbranded and adulterated has experienced in the last few years. Continued from page 1 This week, Clay Hough, senior group food into interstate commerce. Myrter, “Consumers have made it clear they vice president and general counsel for president of Castle Cheese, is charged want quality, they want truth in label- Alcam Creamery name, according to IDFA, notes the association believes that as the responsible corporate offi cer for ing and they want to trust the products Tayt Wuethrich, vice president of pro- all cheese, including Parmesan, must Universal and International. they buy are real,” he says. “Thus, it curement, Grassland Dairy Products. adhere to FDA’s standards of identity. The charges followed a July 2013 let- is benefi cial to the integrity of the No changes are planned at this time. “Compliance with cheese standards ter to the company from FDA in which category for this story to be told.” CMN “We are happy to purchase this plant and keep moving forward,” he says. Grassland Dairy Products maintains CHEESE AND DAIRY APV/SPX CHEDDAR the Wuethrich family legacy with more than a century of churning cream into ARE WHAT WE DO. MASTER TECHNOLOGY butter in Greenwood, Wisconsin. High-Performance, High-Quality Alcam Creamery is a family owned ALL DAY, EVERY DAY. Curd Draining, Cheddaring, Milling, and managed creamery that was es- Salting and Mellowing: tablished in 1946. At that time Alcam ALL OVER THE WORLD. served local cheese plants and dairies, Featuring… providing an outlet for their cream. But- „Individual Control of Each Belt ter is produced at Alcam Creamery for „Milled or Stirred Curd Capabilities on the local and Midwest regional market. Same Machine „Complete Whey Separation from Since its beginnings, Alcam has grown to Each Belt – “No Sump” serve customers throughout the nation „Modular Design and provide butter for domestic and „Highly Accurate Salt Application international consumption. Providing… Alcam Creamery expanded in 2012 „Easily Adjusts Curd Depth/Retention Time to include Hillsboro Riverview Dairy, „More Efficient Curd and Whey Separation Hillsboro, Wisconsin, which was re- „Offers Complete Flexibility to Further Process cently acquired by Land O’Lakes Inc. Different Cheese Types (See “Land O’Lakes buys Hillsboro „Provides Fresher Whey for Further Processing Riverview Dairy, will expand” in the „Maximum Salt Uptake Jan. 29, 2016, issue of Cheese Market Custom is our first name. News.) Hillsboro Riverview Dairy now will be under the Land O’Lakes name CUSTOM FABRICATING & REPAIR and all current employees at that facility Custom, Creative Solutions 1932 E 26th St. • Marshfield, WI 54449 • 1.800.236.8773 • 715.387.6598 also have been offered job opportunities To Fit Your Needs — That’s CFR [email protected] • www.gotocfr.com contingent on standard hiring prac- tices, Land O’Lakes offi cials say. CMN For more information please visit www.gotocfr.com © 2016 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 19, 2016 NEWS/BUSINESS

FARM, BQA extend collaborative commitment on animal care issues Maytag Dairy Farms WASHINGTON — In order to strength- sociation on behalf of the beef checkoff. greater importance today because of voluntarily recalls en the ongoing partnership between the Both programs focus on educating cattle consumers’ interest in the source of dairy and beef segments of the cattle producers about the best practices in their beef, and the treatment of cows,” Blue cheese due industry on animal care issues, the animal care, to assure consumers that says Dan Kniffen, Ph.D., vice chair of to possible Listeria National Milk Producers Federation their meat and milk comes from animals the BQA Advisory Board. (NMPF) and the beef checkoff-funded that receive optimal care throughout Emily Meredith, NMPF’s vice presi- NEWTON, Iowa — Maytag Dairy Farms, Beef Quality Assurance program this the animals’ lives, NMPF says. dent of animal care and director of the Newton, Iowa, recently announced a week announced they will jointly be At the Cattle Industry Convention FARM program, adds that “education is voluntary recall of Maytag Raw Milk offering more training opportunities for last month, the BQA Advisory Board the key to preventing health and wellness Blue Cheese due to possible Listeria farmers and ranchers in 2016. approved an addition to its program problems for cattle further down the road. monocytogenes contamination. NMPF has been working for the whereby any dairy producer evaluated In addition to regional training The recalled product was packaged past year on identifying areas where using the FARM program’s upcoming sessions and additional educational in December 2015 and January 2016 in its Farmers Assuring Responsible Man- version 3.0, due out in January 2017, materials, the FARM program and 4- and 8-ounce wedges, 2- and 4-pound agement (FARM) program can further also will receive their BQA certifi cation. BQA will jointly produce online wheels, and 5-pound crumbles. coordinate with the Dairy Beef Quality “This partnership will maximize the stockmanship training resources The cheese was distributed to HoQ Assurance (BQA) Program, managed value of the beef checkoff’s investment that will be made available to dairy restaurant in Des Moines, Iowa; The by the National Cattlemen’s Beef As- in animal care, which is an issue of farmers this year, NMPF says. CMN Bear Restaurant in Ankeny, Iowa; Wine Experience in West Des Moines, Iowa; Fareway in Newton, Iowa; Lomar Dis- tributing Inc. in Des Moines, Iowa; or purchased directly from Maytag Dairy Farms. No illnesses have been reported to date. The Iowa Department of Agricul- ture and Land Stewardship’s Dairy Products Control Bureau discov- ered the possible contamination during routine testing. CMN Irish co-ops offer proposal to combat dairy price volatility

DUBLIN — The Irish Cooperative Organisation Society (ICOS), a rep- resentative group for the cooperative movement in Ireland, has launched a new agri-taxation proposal aimed at combating extreme income volatility in the dairy sector. ICOS says the ob- jective of its proposal is to address a weakness in the existing system that provides benefi ts to farmers when profi ts are rising but can be a cost when profi ts are falling. The proposed measure, the ICOS “5-5-5” Income Stability Tool, would allow farmers who are participants in a fi ve-year income averaging system to voluntarily defer up to 5 percent of their milk receipts in any given year. The money would be retained in an interest-bearing fund managed by their co-op, and the money could be taken out at any time within fi ve years, subject to income tax at the time of withdrawal. “ICOS has developed a workable and straightforward agri-taxation measure that will help farmers, espe- cially during years of low milk prices,” says Martin Keane, president, ICOS. “We have devised the ‘5-5-5’ scheme in order to comply with EU state aid rules and we urge the incoming government to address this matter in the program for government and budget 2017.” Keane adds that this is only one of a series of measures needed to help For more information please visit www.adpi.org counter dairy market volatility. CMN © 2016 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])