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Milk — Simplifi Ed.’ the Specialty Food Industry Have Limited Distribution and Retail Sales of Specialty Food Volume, WMMB Says

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Milk — Simplifi Ed.’ the Specialty Food Industry Have Limited Distribution and Retail Sales of Specialty Food Volume, WMMB Says Volume 35 April 17, 2015 Number 13 Scan this code for breaking Specialty cheese is in more news and the latest markets! channels as demand grows A By Alyssa Mitchell sales reaching a record $109 The top 10 best-selling cheese sales totaled 664 million billion. categories have shifted since pounds in 2014 and accounted INSIDE MADISON, Wis. — Once The report, “The State of 2013, the report notes. Cheese for 17 percent of the retail available largely among niche the Specialty Food Industry is still tops with $3.7 billion cheese market. ✦ Dairy groups urge action cheesemakers and at specialty 2015,” tracks U.S. sales of in sales, but coffee and cocoa Meanwhile, within the food retailers, specialty cheese vari- specialty food through super- have jumped past frozen and processing channel, specialty on TPA legislation. eties now are gaining traction markets, natural food stores, refrigerated meat, poultry varieties account for about 15 For details, see page 5. in the commodity and foodser- specialty food retailers and and seafood to claim second percent of the cheese used as ✦ Guest column: vice sectors, and larger cheese foodservice venues. Specialty place. Bread and baked goods an ingredient, with hard Ital- ‘Class I and Class II companies also want a share of foods are broadly defi ned for entered the top fi ve, bumping ian varieties and Blue cheeses this growing market. the report as products that out yogurt. accounting for most of this milk — simplifi ed.’ The specialty food industry have limited distribution and Retail sales of specialty food volume, WMMB says. For details, see page 6. is a bright spot in the U.S. econ- a reputation for high quality. hit a record $85.5 billion in WMMB adds that within ✦ CMN congratulates winners omy, notes a new report from Retail sales of specialty 2014, representing 78 percent foodservice, the top specialty the Specialty Food Association food sales grew 19 percent of total U.S. sales of specialty cheeses in terms of volume of U.S. Championship Contest. produced in conjunction with from 2012 to 2014 vs. a tepid food. Foodservice sales account usage by restaurants are Par- For details, see pages 25-45. research fi rms Mintel Interna- 2-percent increase for all food, for the other 22 percent of all mesan, Feta and Blue cheeses. ✦ Wisconsin Master Cheese tional and SPINS/Information the report notes. The industry, specialty food dollars, reaching Specialty cheese usage is Maker program graduates Resources Inc. (IRI). In 2014, fueled by small businesses, $24 billion in 2014. Foodservice much more prevalent among two, four returning. sales of specialty food topped now boasts 15 segments that is an increasingly important full-service restaurants, which $100 billion for the fi rst time, exceed $1 billion in sales, sector, with an impressive account for about 80 percent For details, see pages 49-53. with retail and foodservice including cheese, yogurt, cof- growth of 30.7 percent since of the volume of Parmesan, fee, meat, poultry and seafood, 2012, the report says. Feta and Blue cheeses used in chips, pretzels and snacks, The Wisconsin Milk Mar- restaurants, with the remain- and candy. keting Board (WMMB) esti- ing 20 percent being used in California dairy groups, milk “The time is now for spe- mates that Wisconsin alone limited-service restaurants, cialty food,” says Ron Tanner, produces about 46 percent of WMMB adds. However, almost supplier fi le FMMO proposals vice president of philanthropy, the specialty cheese made in all specialty cheese varieties government and industry rela- the United States, a share that tracked by WMMB in foodser- SACRAMENTO — Two California dairy groups and a California milk tions for the Specialty Food has remained fairly steady over vice are used by at least some supplier recently fi led alternative proposals with USDA’s Agricultural Association. “Consumers are the past decade, indicating limited-service restaurants, Marketing Service (AMS) in response to a petition fi led in February looking for new tastes, foods that national specialty cheese showing that specialty cheese by three California dairy cooperatives. with fewer and cleaner ingre- production growth mirrors the as a whole is becoming increas- California Dairies Inc. (CDI), Dairy Farmers of America Inc. (DFA) dients, health attributes and growth WMMB is seeing within ingly mainstream. and Land O’Lakes Inc. on Feb. 5 petitioned USDA to hold a hearing products that are made by Wisconsin. “In every product category, to consider establishing a federal milk marketing order (FMMO) for companies with values they According to WMMB analy- consumption is more special- California. (See “Calif. dairy co-ops submit proposal to join FMMO” care about. All of these defi ne sis of data from IRI, within ized and focused on high end in the Feb. 6, 2015, issue of Cheese Market News.) specialty food.” the retail channel, specialty Turn to SPECIALTY, page 22 a Under existing regulations, California dairy farmers operate under statewide milk pricing plans. The majority of farmers in other states operate under a FMMO, which provides uniform dairy prices for milk based on market prices. Under proposed federal order language sub- mitted by the cooperatives, California would have the same pricing UF milk technology could Stakeholders in formulas/system as all other federal orders for all classes of milk. (For dairy comment more details on the cooperatives’ proposal, see “U.S. dairy industry streamline cheesemaking on FMMO system reacts to idea of California federal order” in the Feb. 13, 2015, issue By Chelsey Dequaine of Cheese Market News.) WASHINGTON — Dairy Proponents of an FMMO believe the failure of California’s state MADISON, Wis. — The Center for Dairy Research (CDR) currently industry stakeholders submit- system to pay a fair price has cost California’s dairy producers nearly is studying the benefi ts of standardizing ultrafi ltered (UF) milk to ted comments to USDA’s Ag- $2 billion since 2011. a lactose-to-protein ratio. CDR says traditionally, cheesemakers ricultural Marketing Service In response to the cooperatives’ request that USDA hold a hearing only standardize the total solids content of cheesemilk, or the (AMS) this week in response on the matter, USDA said that prior to determining whether to conduct protein-to-fat ratio. to the agency’s review of a hearing, the agency requests additional proposals be submitted Dr. Mark Johnson, CDR assistant director and distinguished the federal milk marketing regarding the provisions of a potential California FMMO. Alternative scientist, says the technology eliminates defects associated with orders (FMMOs) as part of a proposals were due April 10. excessive acid development, eliminates inconsistencies in the government-wide look at the Late last week, trade association Dairy Institute of California, the fi nal product and streamlines cheesemaking. effect of regulations on small California Producer Handlers Association (CPHA) — made up of four Ultrafi ltration of milk reduces the volume of water in milk. In businesses and a request for producer-handler dairy farms including Foster Dairy Farms Inc., Modesto; order to reduce the amount of lactose in the water that remains, comments issued in February. Hollandia Dairy Inc., Escondido; Producers Dairy Foods Inc., Fresno; and Johnson says water must be added back. The new process begins with Comments were due this week. a Turn to CALIFORNIA, page 17 Turn to UF, page 16 a Turn to FMMO, page 14 a © 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 2 CHEESE MARKET NEWS® — April 17, 2015 MARKET INDICATORS Chicago Mercantile Exchange Cash prices for the week ended April 17, 2015 CHEESE FUTURES* for the week ending April 16, 2015 (Listings for each day by month, settling price and open interest) Monday Tuesday Wednesday Thursday Friday April 13 April 14 April 15 April 16 April 17 Fri., April 10 Mon., April 13 Tues., April 14 Wed., April 15 Thurs., April 16 APR15 1.600 4,695 1.599 4,677 1.598 4,668 1.599 4,621 1.610 4,626 Cheese Barrels MAY15 1.618 4,382 1.600 4,394 1.599 4,421 1.600 4,447 1.620 4,446 Price $1.6100 $1.6100 $1.6150 $1.6150 $1.6250 JUN15 1.624 4,217 1.604 4,240 1.601 4,286 1.596 4,338 1.623 4,350 Change NC NC +1/2 NC +1 JUL15 1.685 3,171 1.657 3,203 1.649 3,239 1.648 3,286 1.664 3,293 AUG15 1.750 2,975 1.727 3,003 1.714 3,046 1.705 3,110 1.717 3,119 Cheese 40-lb. block SEP15 1.778 2,978 1.762 3,018 1.755 3,051 1.745 3,085 1.755 3,097 Price $1.5775 $1.5725 $1.5725 $1.5725 $1.5750 OCT15 1.793 2,533 1.776 2,543 1.765 2,542 1.764 2,564 1.772 2,582 NOV15 1.792 2,645 1.782 2,659 1.767 2,674 1.771 2,691 1.779 2,715 Change NC -1/2 NC NC +1/4 DEC15 1.784 2,518 1.771 2,529 1.766 2,534 1.765 2,542 1.770 2,549 JAN16 1.750 193 1.745 184 1.740 211 1.740 216 1.743 225 Weekly average (April 13-17): Barrels: $1.6150(+.0080); 40-lb. Blocks: $1.5740(-.0035). FEB16 1.755 124 1.739 132 1.737 145 1.737 145 1.738 153 Weekly ave.
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