Volume 37 January 5, 2018 Number 51

All eyes on Europe to impact

Like us on Facebook and follow us on Twitter! global dairy prices in 2018 A By Alyssa Mitchell to show up in various product bring markets into balance might end up as a good thing? categories, making Europe a later this year.” This is less a prediction on INSIDE MADISON, Wis. — Analysts more competitive exporter of Mike McCully, owner of The NAFTA negotiations and more have their sights set on Europe product.” McCully Group LLC, New Buf- an observation as to what the as milk production there is Overall expansion in milk falo, Michigan, says while dairy market is pricing,” he says. ✦ ADPI seeks nominations for expected to result in excess production is generally ex- farmers in the United States Meanwhile, as U.S. prices Breakthrough, Merit awards. supply hitting the world market pected in the European Union are getting the signal to slow already have addressed post- For details, see page 6. and impacting dairy prices (EU) during the fi rst part of production from lower milk holiday demand, attention now ✦ DMK Group, Arla sign globally in 2018. 2018, says USDA’s Dairy Market prices, that hasn’t happened turns to what the milk supply Andrew Faulman, floor News. yet in Europe. looks like, Kurzawski says. Mozzarella agreement. manager at Rice Dairy, Chicago, Dairy Market News notes “The consensus opinion is “Europe is strong, but For details, see page 8. notes that after the quota sys- there is increasing chatter global dairy prices will post a between the U.S. and New ✦ Millennials’ food spending tem was abolished in Europe, about whether the EU will be modest recovery in the second Zealand, production estimates favors convenient options, there has been strong growth in less welcoming of adding to half of the year — but if Euro- are getting ratcheted down, not less dairy than groups. the European milk shed. intervention stocks of skim pean milk production growth up,” he says. “That will be an For details, see page 9. “Recent aggregate data re- milk powder (SMP) as 2018 continues, that recovery likely issue that keeps the bottom leased in December shows that develops. won’t happen until 2019,” Mc- from falling out on cheese.” ✦ Penn State Extension offers European milk production grew “There is growing sentiment Cully says. Cheddar barrel prices at the data tracking system for just over 5 percent year-over- favoring more milk moving into He notes that in the next few Chicago Mercantile Exchange small-scale cheesemakers. year for the month of October,” cheese and whole milk powder weeks, the EU Commission is (CME) dipped into the $1.30s, For details, see page 15. Faulman says. “That excess production,” Dairy Market expected to announce details settling at $1.3900 per pound milk I believe will continue News says. for how they will operate the on Friday. Blocks settled at “What’s happening in Eu- SMP intervention program in $1.4950. rope is not staying in Europe,” 2018. Faulman says he expects says Sara Dorland, managing “That will remove one excess milk to put pressure U.S. cheese production rises partner with Ceres Dairy Risk uncertainty from the market, on CME prices in the fi rst Management LLC, Seattle. with the other big one being the quarter. 2.8 percent over year earlier “The intervention program ongoing NAFTA renegotiation,” “To start the year, the CME policy will be key as well as any McCully says. cheese market has begun WASHINGTON — Total U.S. cheese production, excluding cottage potential direct payments to Dave Kurzawski, senior trending lower,” he says. “At cheese, was 1.055 billion pounds in November, 2.8 percent above No- farms. If Europe continues to broker at INTL FCStone, the moment, January cheese vember 2016’s 1.026 billion pounds, according to data released Thursday expand milk production at its Chicago, says the NAFTA dis- futures are trading at a pre- by USDA’s National Agricultural Statistics Service (NASS). (All fi gures current pace, that would put course may get worse before it mium to the average price of are rounded. Please see CMN’s Dairy Production chart on page 15.) a lid on 2018 dairy markets. If gets better, but he notes every spot cheese, which may be November cheese production was 2.0 percent below October 2017’s Europe adjusts its payments comment about NAFTA is fi lled indicative to premiums get- 1.077 billion pounds. When adjusted for the length of the months, No- and policy to encourage a rea- with fear. ting reported into the National vember cheese production was 1.2 percent higher than October 2017 sonable amount of milk, given “When’s the last time you Dairy Product Sales Report.” production on an average daily basis. current demand, that could heard a suggestion that NAFTA Turn to PRICES, page 14 a Italian-type cheese production totaled 454.7 million pounds in November, 3.6 percent above November 2016, according to NASS. No- vember production of Mozzarella, the largest component of Italian-type cheese production, totaled 350.4 million pounds, 3.3 percent above production a year earlier. Study notes opportunities WCMA pledges American-type cheese production totaled 401.2 million pounds in second gift for November, 0.6 percent above a year earlier. Production of Cheddar, for dairy investment in Pa. UW-River Falls the largest component of American-type cheese production, was 284.7 HARRISBURG, Pa. — An investment in additional dairy pro- million pounds, virtually the save level as a year earlier. cessing capacity in Pennsylvania could generate $34.7 million MADISON, Wis. — The Wisconsin led the nation’s cheese production with 279.2 million annually in combined revenue generation and cost savings, ac- Wisconsin Cheese Makers pounds produced in November, up 2.4 percent from November 2016, cording to an “Analysis of Economic Incentives for Additional Association (WCMA) this according to NASS. California followed with 211.0 million pounds, up Dairy Processing Capacity in Pennsylvania” study released by week announced its board 0.6 percent from its production a year earlier. dairy market analysts. of directors’ pledge of a The next three cheese-producing states in November were New The study — authored by Chuck Nicholson, adjunct associate second gift of $100,000 to the York with 77.2 million pounds, down 0.1 percent from its production a professor in the Charles H. Dyson School of Applied Economics and Foundation at the University year earlier; Idaho with 76.6 million pounds, up 3.2 percent; and New Management at Cornell University; Mark Stephenson, director of of Wisconsin-River Falls to Mexico with 64.5 million pounds, down 1.5 percent. dairy policy analysis at the University of Wisconsin-Madison; and help the school rebuild its NASS reports U.S. butter production was 145.7 million pounds in Andrew Novakovic, E.V. Baker Professor of Agricultural Economics dairy pilot plant. WCMA November, 1.8 percent above November 2016’s 143.1 million pounds and at Cornell — was commissioned by the Pennsylvania Department kicked off the fundraising 1.6 percent above October 2017’s 143.4 million pounds. When adjusting of Agriculture and the Center for Dairy Excellence as part of a drive in 2014 with its initial for the length of the months, November production was 5.0 percent comprehensive look at competitiveness and growth opportunities gift of $100,000. a Turn to NASS, page 15 Turn to STUDY, page 14 a Turn to WCMA, page 15 a © 2018 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® — January 5, 2018 MARKET INDICATORS

Chicago Mercantile Exchange CHEESE FUTURES* for the week ending January 4, 2018 Cash prices for the week ended January 5, 2018 (Listings for each day by month, settling price and open interest)

Monday Tuesday Wednesday Thursday Friday Fri., Dec. 29 Mon., Jan. 1 Tues., Jan. 2 Wed., Jan. 3 Thurs., Jan. 4 Jan. 1 Jan. 2 Jan. 3 Jan. 4 Jan. 5 DEC17 1.646 2,721 1.646 2,721 1.648 2,721 1.648 3,009 JAN18 1.536 3,130 1.526 3,128 1.522 3,127 1.523 3,108 Cheese Barrels FEB18 1.511 3,053 1.496 3,036 1.490 3,075 1.492 3,079 Price $1.4275 $1.4000 $1.3975 $1.3900 MAR18 1.511 3,090 1.496 3,113 1.489 3,181 1.497 3,198 Change Markets -1 1/2 -2 3/4 -1/4 -3/4 APR18 1.536 2,704 1.521 2,723 1.519 2,750 1.517 2,775 Closed MAY18 1.572 2,388 Markets 1.557 2,386 1.552 2,396 1.553 2,408 Cheese 40-lb. Blocks JUN18 1.610 2,378 Closed 1.598 2,382 1.592 2,388 1.596 2,408 Price $1.5250 $1.5075 $1.4950 $1.4950 JUL18 1.651 1,607 1.645 1,621 1.645 1,625 1.646 1,636 AUG18 1.679 1,596 1.672 1,609 1.670 1,612 1.671 1,631 Change -1 1/2 -1 3/4 -1 1/4 NC SEP18 1.690 1,752 1.688 1,759 1.688 1,763 1.687 1,778 OCT18 1.698 1,428 1.698 1,439 1.698 1,439 1.698 1,439 Weekly average (Jan. 2-5): Barrels: $1.4038(-.0318); 40-lb. Blocks: $1.5056(-.0100). NOV18 1.690 1,451 1.689 1,462 1.689 1,463 1.689 1,495 Weekly ave. one year ago (Jan. 3-6, 2017): Barrels: $1.5900; 40-lb. Blocks: $1.6644. DEC18 1.684 1,177 1.680 1,189 1.680 1,190 1.680 1,237 JAN19 1.670 112 1.670 112 1.670 112 1.665 112 Grade A NDM Total Contracts Traded/ 501/28,680 Price Markets $0.6700 $0.6700 $0.6700 $0.6800 Open Interest 283/28,587 538/28,843 528/29,314 Change Closed -3/4 NC NC +1 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. Weekly average (Jan. 2-5): Grade A: $0.6725(+.0081).

Grade AA Butter Price Markets $2.2075 $2.2200 $2.2300 $2.2375 DRY WHEY FUTURES for the week ended January 4, 2018 Change Closed NC +1 1/4 +1 +3/4 (Listings for each day by month, settling price and open interest) Weekly average (Jan. 2-5): Grade AA: $2.2238(+.0269). Fri., Dec. 29 Mon., Jan. 1 Tues., Jan.2 Wed., Jan. 3 Thurs., Jan. 4 DEC17 30.075 603 30.250 606 30.250 606 30.300 576 Class II Cream (Major Northeast Cities): $2.1969(+.1135)–$2.5264(+.1141). JAN18 26.250 397 26.500 407 26.750 418 27.700 444 FEB18 24.025 439 24.250 450 24.300 459 25.125 464 Sign up for our daily fax or email service for just $8 a month. Call us at 608-288-9090. MAR18 23.600 411 23.600 410 24.500 416 25.125 420 APR18 24.375 325 24.375 325 24.650 325 25.475 326 MAY18 24.750 329 24.750 329 24.750 329 25.475 330 JUN18 24.800 302 Markets 24.800 302 24.825 302 26.000 303 JUL18 24.650 228 Closed 24.675 228 24.750 228 26.700 229 AUG18 24.975 183 24.975 183 24.975 183 26.825 184 SEP18 25.000 234 25.025 234 25.025 234 26.675 235 OCT18 25.150 186 26.000 186 26.000 186 26.800 187 Weekly Cold Storage Holdings January 1, 2018 NOV18 25.750 204 25.750 204 25.750 204 27.025 205 On hand Week Change since January 1 Last Year DEC18 26.050 231 26.275 231 26.275 231 27.125 232 Monday Change Pounds Percent Pounds Change JAN19 27.250 10 27.250 10 27.250 10 27.675 10 29.725 29.725 2 Butter -349 +0 -2,996 FEB19 2 2 29.725 2 29.725 8,950 +0 11,946 MAR 19 30.175 6 30.175 6 30.175 6 30.175 6 Cheese 96,245 +1,933 +0 +0 82,442 +13,803 APR 19 31.800 2 31.800 2 31.800 2 32.125 2 32.000 (These data, which include government stocks and are reported in thousands of pounds, are based on reports from MAY 19 32.000 2 2 32.000 2 32.000 2 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 62/4,094 76/4,117 38/4,143 76/4,157 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.

CLASS III PRICE Dry Products* January 5, 2018 (Dollars per hundredweight, 3.5% butterfat test) YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 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 $.6500-$0.7400(-1); 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 $.6850(-1/2)-$.7300. 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 $.8100-$.9200. 2014 21.15 23.35 23.33 24.31 22.57 21.36 21.60 22.25 24.60 23.82 21.94 17.82 West: low/medium heat $.6150(+2)-$.7500; 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 $.6500(-2)-$.7300. 2016 13.72 13.80 13.74 13.63 12.76 13.22 15.24 16.91 16.39 14.82 16.76 17.40 high heat $0.8300-$.9200(-1). 2017 16.77 16.88 15.81 15.22 15.57 16.44 15.45 16.57 16.36 16.69 16.88 15.44 Calif. manufacturing plants: extra grade/grade A weighted ave. $.7434(+.0186) based on 6,619,345 lbs.

WHOLE MILK POWDER (National): $1.3500-$1.4500. STAFF SUBSCRIPTION INFORMATION Susan Quarne, Publisher Cheese Market News®, Publication #0598-030, (ISSN 0891- EDIBLE LACTOSE (PH 608/831-6002; FAX 608/288-9093) 1509), is published weekly by Quarne Publishing LLC, P.O. (FOB)Central and West: $.1600-$.3500; mostly $.1800-$.2600. email: [email protected] Box 628254, Middleton, WI 53562; Phone 608/831-6002; Kate Sander, Editorial Director FAX 608/288-9093. Periodicals postage paid at Madison, (PH 509/962-4026; FAX 608/288-9093) WI. Circulation records are maintained by Quarne Publishing LLC, P.O. Box 628254, Middleton, WI 53562. POSTMASTER: WHEY POWDER email: [email protected] Send address changes to Cheese Market News®, Subscriber Central: nonhygroscopic $.1900(-3)-$.3000(-3); Alyssa Mitchell, Managing Editor Services, P. O. Box 628254, Middleton, WI 53562; Form mostly $.2250(-1 1/2)-$.2900. (PH 608/288-9090; FAX 608/288-9093) 3579 requested; or call direct at 608/831-6002. All rights email: [email protected] West: nonhygroscopic $.2000-$.3200(-2); reserved under the United States International and Pan- mostly $.2500-$.2800(-1). Rena Archwamety, Senior Editor American Copyright Conventions. No part of this publication (PH 608/288-9090; FAX 608/288-9093) may be reproduced, stored in a retrieval system or transmitted (FOB) Northeast: extra grade/grade A $.2500-$.3350(-1/2). email: [email protected] in any form or by any means, mechanical, photocopying, Mallory Leonard, Assistant Editor electronic recording or otherwise, without the prior written ANIMAL FEED WHEY (Central): Whey spray milk replacer $.1500-$.2500. (PH 608/288-9090; FAX 608/288-9093) permission of Quarne Publishing LLC. Opinions expressed email: [email protected] in articles are those of the authors and do not necessarily UHÁHFWWKRVHRI4XDUQH3XEOLVKLQJ//&GED&KHHVH0DUNHW WHEY PROTEIN CONCENTRATE (34 percent): $.6100(-2)-$.9400; REGULAR CONTRIBUTORS ® ® News . Cheese Market News does not endorse the products mostly $.6500-$.8125(-1 1/4). Creative Business Services, FCStone, International Dairy 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, WOW Logistics, errors or omissions in the material contained herein, regard- DRY BUTTERMILK Edward Zimmerman less of whether such errors result from negligence, accident (FOB)Central & East: $.7500-$.8500(+3). ADVERTISING/SUBSCRIPTION ORDERS & INFO or any other cause whatsoever. Copyright 2018 by Quarne Publishing LLC. (FOB) West: $.6500-$.7900; mostly $.6700-$.7500. 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 $1.9875(-3 1/4)-$2.1000(-22); Acid $2.9000(-10)-$3.3000(-2). 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. © 2018 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]) January 5, 2018 — CHEESE MARKET NEWS® 3 MARKET INDICATORS

California Minimum Prices Released January 2, 2018 We look at cheese differently. Butterfat SNF Equivalent Class 4a $ 2.3963/lb. $ 0.5720/lb. $ 13.36/cwt. Class 4b $ 2.3963/lb. $ 0.5905/lb. $ 13.52/cwt.

International Dairy Markets January 5, 2018 Western Europe Butter: 82 percent butterfat $4,800(+75)-5,100(-100). ...because we don’t just Butteroil: 99 percent butterfat $6,400(-275)-$7,900(+450). Skim Milk Powder: 1.25 percent butterfat $1,600(+25)-$1,700(NC). see cheese, we see the Whole Milk Powder: 26 percent butterfat $2,900(+25)-$3,125(+25). whole picture. 1.866.404.4545 www.devilletechnologies.com Whey Powder: Nonhygroscopic $725(+25)-$900(-25). Oceania For more information please visit www.devilletechnologies.com Butter: 82 percent butterfat $4,475(+25)-$4,975(NC). Cheddar Cheese: 39 percent maximum moisture $3,300(-25)-$3,475(-50). Skim Milk Powder: 1.25 percent butterfat $1,675(+25)-$1,875(+100). CME FUTURES for the week ended January 4, 2018 Whole Milk Powder: 26 percent butterfat $2,850(+150)-$2,950(+150). Class III Milk* South America Fri., Dec. 29 Mon., Jan. 1 Tues., Jan. 2 Wed., Jan. 3 Thurs., Jan. 4 Skim Milk Powder: 1.25 percent butterfat $2,475(-25)-$2,575(-25). DEC17 15.40 3,725 15.42 3,726 15.44 3,729 15.44 4,448 Whole Milk Powder: 26 percent butterfat $2,850(+25)-$3,450(+25). JAN18 14.08 3,529 14.02 3,546 14.01 3,536 14.05 3,474 Source: Dairy Market News. Prices reported in U.S. dollars per metric ton, F.O.B. port. FEB18 13.77 3,444 13.59 3,485 13.52 3,564 13.62 3,540 MAR18 13.74 3,253 13.57 3,277 13.54 3,276 13.66 3,243 To convert to price per pound: divide price by 2,204.6 pounds. APR18 14.05 2,138 13.89 2,145 13.89 2,178 13.93 2,174 MAY18 14.38 2,005 14.27 2,012 14.27 2,014 14.27 2,013 JUN18 14.72 1,872 Markets 14.69 1,875 14.65 1,883 14.70 1,890 JUL18 15.14 1,217 Closed 15.19 1,231 15.23 1,231 15.24 1,233 AUG18 15.36 1,230 15.41 1,242 15.41 1,247 15.46 1,257 Class & Component Prices SEP18 15.53 1,289 15.55 1,305 15.60 1,304 15.63 1,309 OCT18 15.65 996 15.70 1,001 15.70 1,001 15.72 1,005 NOV18 15.57 970 15.62 978 15.62 978 15.65 991 December 2017 November 2017 DEC18 15.53 860 15.55 867 15.55 867 15.60 877 Class III: JAN19 15.43 20 15.43 20 15.43 20 15.43 20 Price $ 15.44/cwt. $ 16.88/cwt. FEB 19 15.53 19 15.53 19 15.53 19 15.53 19 Skim Price $ 6.95/cwt. $ 8.23/cwt. Total Contracts Traded/ Open Interest 688/26,684 1,036/26,846 814/26,964 1,361/27,610 Class IV: Price $ 13.51/cwt. $ 13.99/cwt. Class IV Milk* Skim Price $ 4.95/cwt. $ 5.23/cwt. Class II: Fri., Dec. 29 Mon., Jan. 1 Tues., Jan. 2 Wed., Jan. 3 Thurs., Jan. 4 Price $ 14.49/cwt. DEC17 13.54 556 13.54 556 13.54 565 13.51 674 $ 15.32/cwt. JAN18 13.26 229 13.26 229 13.26 227 13.26 227 Butterfat Price $ 2.5021/lb. $ 2.5616/lb. FEB18 13.24 201 13.24 201 13.22 200 13.22 202 Component Prices: MAR18 13.55 189 13.55 189 13.42 189 13.42 189 APR18 13.78 178 Markets 13.78 176 13.70 176 13.70 176 Butterfat Price $ 2.4951/lb. $ 2.5546/lb. MAY18 13.99 153 Closed 13.99 153 13.90 153 13.90 153 Nonfat Solids Price $ 0.5503/lb. $ 0.5816/lb. JUN18 14.21 162 14.21 162 14.20 162 14.20 162 Protein Price $ 2.0378/lb. $ 2.3412/lb. JUL18 14.40 53 14.40 53 14.40 54 14.40 54 Other Solids Price $ 0.107/lb. $ 0.1644/lb. AUG18 14.67 32 14.67 32 14.65 32 14.65 32 SEP18 14.90 40 14.90 40 14.90 40 14.90 40 Somatic Cell Adjustment Rate $ 0.00082/1,000 scc $ 0.00088/1,000 scc OCT 18 15.10 28 15.10 28 15.10 28 15.10 28 Product Price Averages: Total Contracts Traded/

Butter $ 2.2319/lb. $ 2.2810/lb. Open Interest 16/1,889 3/1,887 43/1,894 2/2,005 Nonfat Dry Milk $ 0.7237/lb. $ 0.7553/lb. Cheese $ 1.6481/lb. $ 1.7617/lb. Cash-Settled NDM* Dry Whey $ 0.3030/lb. $ 0.3587/lb. Fri., Dec. 29 Mon., Jan. 1 Tues., Jan. 2 Wed., Jan. 3 Thurs., Jan. 4 DEC17 72.250 899 72.250 899 72.250 899 72.370 1,043 JAN18 70.125 978 70.025 978 70.000 981 69.850 985 FEB18 70.250 1,004 70.125 1,004 69.800 1,004 69.500 1,001 National Dairy Products Sales Report MAR18 73.100 1,067 Markets 72.125 1,067 71.750 1,072 70.900 1,097 APR18 74.625 894 Closed 74.000 897 73.675 902 72.800 904 For the week ended: 12/30/17 12/23/17 12/16/17 12/09/17 MAY18 76.300 644 76.050 635 75.450 632 74.525 625 JUN18 78.600 618 78.000 618 77.000 615 76.050 606 Cheese 40-lb. Blocks: JUL18 80.800 339 79.725 342 79.350 342 77.900 341 Average price1 $1.5208 $1.5543 $1.5894 $1.6547 AUG 18 82.275 277 82.275 277 80.675 278 79.475 278 Sales volume2 9,688,489 11,625,168 12,400,601 13,831,757 Total Contracts Traded/ Cheese 500-lb. Barrels: Open Interest 674/7,598 26/7,595 89/7,634 253/7,799 Average price1 $1.6994 $1.7341 $1.7201 $1.7497 Adj. price to 38% moisture $1.6154 $1.6489 $1.6349 $1.6644 Cash-Settled Butter* Sales volume2 11,760,552 10,815,771 12,087,712 12,758,611 Fri., Dec. 29 Mon., Jan. 1 Tues., Jan. 2 Wed., Jan. 3 Thurs., Jan. 4 34.77 34.80 34.77 34.82 Moisture content DEC17 222.750 934 223.000 934 223.000 934 223.190 1,103 Butter: JAN18 221.500 976 222.100 976 222.575 975 223.750 974 Average price1 $2.2244 $2.2357 $2.2221 $2.2299 FEB18 220.675 975 219.700 981 220.000 988 221.750 989 Sales volume2 1,798,715 2,445,615 2,699,403 3,210,080 MAR18 223.400 1,028 Markets 223.275 1,031 222.375 1,054 223.100 1,064 Nonfat Dry Milk: APR18 226.000 432 225.925 433 224.975 443 225.100 449 MAY18 228.000 339 Closed 228.000 339 227.025 339 227.100 347 1 $0.7035 *$0.7057 *$0.7279 *$0.7312 Average price JUN18 228.500 323 228.025 332 228.050 342 229.000 345 2 Sales volume 11,803,306 *15,295,475 *17,951,437 *17,357,329 JUL18 229.300 148 229.500 153 229.500 163 229.500 163 Dry Whey: AUG18 230.300 123 230.300 124 230.500 135 230.500 135 Average price1 $0.2851 *$0.3009 $0.3145 $0.2913 SEP 18 231.300 141 231.300 142 231.300 142 231.500 142 Sales volume2 5,952,163 6,245,377 6,448,126 11,711,511 Total Contracts Traded/ Open Interest 144/5,691 56/5,720 117/5,791 93/5,990 */Revised. 1/Prices weighted by volumes reported. 2/Sales as reported by participating manufacturers. 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. Reported in pounds.

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. © 2018 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® — January 5, 2018 WCMA UPDATE

training for dairy industry personnel. highest award, Life Member. River Falls has re-instituted its Food In business, Dan proved that deli- Perspective: Science & Technology major and offers cious new products, fresh ideas and WCMA a food processing technology minor. great marketing could build cheese Inspired to join WCMA in a fi nal companies, and in “retirement” he im- John Umhoefer is executive round of giving? Contact Julie Stucky mediately applied his energy to create director of the Wisconsin Cheese at the UW River Falls Foundation. Julie. the Dairy Business Innovation Center. Makers Association. He contributes [email protected] The center helped dozens of business this column monthly for Cheese • Center for Dairy Research start up and thrive, but more impor- Market News®. At the University of Wisconsin- tantly, Dan helped these entrepreneurs Madison, donors and campus leaders discover the best version of themselves. have homed in on a schedule that will Cheesemakers across the nation are see groundbreaking in the summer of lucky that this dynamic man and his ex- 2018. While it’s been a lengthy process traordinary wife and partner chose to fo- from fundraising to groundbreaking, cus their energy and heart on bettering all parties have adopted the mantra of our industry. Dan’s legacy is more than getting it right, rather than just getting the elevation of a craft, it’s the thou- it done. sands of lives he touched and improved Final bid documents — blueprints because he helped so many people be- Advancing projects honor for a new, three-level research and lieve in themselves and succeed. CMN training center — will be ready in mid- the spirit of an icon February and contractors will be asked The views expressed by CMN’s guest to submit bids for construction in March. columnists are their own opinions This new year brings two highly- $200,000 WCMA has donated for dairy • Dan Carter and do not necessarily refl ect those of anticipated moments in dairy research education and modern facilities at River This boom in dairy education and Cheese Market News®. and education: Leaders and donors will Falls, $50,000 for the cheese plant at research is a fi tting context to honor break ground on a new dairy plant at South Dakota State University and Dan Carter, a man always focused on the University of Wisconsin-River Falls, $500,000 our nonprofi t trade associa- a better future for the cheese industry. and in Madison, the fl agship University tion donated to the construction of the Dan and Jane Carter, always a team, of Wisconsin will sink golden shovels to Center for Dairy Research in Madison. advocated for the new Center for Dairy mark construction of the all-new Center • River Falls Research and donated generously to its for Dairy Research astride Babcock Hall. With much of its funding in hand, construction. Dan was a graduate of Some dairy ad This bright future for education UW-River Falls will begin construction UW-Madison and later chairman of the and research honors the legacy of Dan when classes are complete in June 2018. Board of Visitors for the University’s Col- numbers decline Carter, a cheese industry icon who The fully-renovated dairy plant will take lege of Agricultural and Life Sciences. following holidays passed away Dec. 19. Dan tirelessly over additional existing space, reaching I am in no better position than many advocated for innovation and education 6,000 square feet for student production to recognize and revere Dan Carter, but WASHINGTON — Advertising num- because he knew talented people are of cheese and ice cream. I am one of so many who benefi tted from bers for some dairy products are lower the key to growing an industry. It’s a bold stroke, because while his kindness, his drive, his humor and following the holidays, with national The Wisconsin Cheese Makers As- generous donations and a State of his passion for a greater cheese indus- conventional 1-pound butter ads fall- sociation board of directors agrees. Wisconsin allotment have gathered $3.1 try. Dan encouraged my efforts from a ing 72 percent last week over the In December, the board initiated a million, the project is estimated to cost “Welcome to WCMA” letter 25 years ago prior week, says USDA’s Agricultural second round of industry funding for $4.0 million with completely renovated to hundreds of notes, calls and media Marketing Service (AMS) in its latest the building project at UW-River Falls. physical plant, all new equipment, pip- clips across the decades. weekly National Dairy Retail Report The board voted unanimously to offer a ing and automation. Dan’s ideas improved the Champion- released Dec. 29. second gift of $100,000 to spur a race to River Falls is a crucial training ship Cheese Contests and his support AMS says national conventional the project’s budget fi nish line. ground for students and offers pasteur- added members to the rolls of our as- butter in 1-pound packages last week If you’re scoring along with us, that’s izer, cheesemaking and food safety sociation. In 2002, he earned WCMA’s had a weighted average advertised price of $3.13, down from $3.21 one week earlier but up from $2.69 one year earlier. Meanwhile, national conventional cheese ads increased 3 percent last week over the prior week, AMS says. Natural varieties of 8-ounce cheese blocks last week had a weighted aver- age advertised price of $2.17, down from $2.20 one week earlier but up from $2.07 one year ago. AMS says natural varieties of 1-pound cheese blocks last week had a weighted average advertised price of $3.85, down from $4.26 one week earlier but up from $3.21 one year earlier, while 2-pound cheese blocks had a weighted average advertised price of $5.84, up from $5.23 one week earlier but down from $6.15 one year earlier. Natural varieties of 8-ounce cheese shreds last week had a weighted average advertised price of $2.12, up from $2.08 one week earlier but down from $2.20 one week earlier, while 1-pound cheese shreds had a weighted average advertised price of $3.81, up from $3.75 one week earlier For more information please visit www.ivarsoninc.com and $3.18 one year ago, AMS says. CMN © 2018 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]) January 5, 2018 — CHEESE MARKET NEWS® 5 NEWS/BUSINESS NEW PRODUCTS FOR DAIRY MANUFACTURERS NMPF urges state, federal enforcement Ingredion Inc. introduces PRECISA 604 action on Kite Hill use of ‘yogurt’ name texturizer for processed, imitation cheeses

ARLINGTON, Va. — The National Milk in combination, with specifi c lactic acid WESTCHESTER, Ill. — Ingredion functional abilities to dairy products Producers Federation (NMPF) is urging bacteria. NMPF says that “without real Inc. recently introduced PRECISA while reducing and controlling ingredi- state and federal regulators to take en- milk’s many nutrients as a base, this fake 604 modifi ed potato starch, a textur- ent costs. forcement action against a plant-based yogurt product fails to deliver the same izer the company says will help manu- “The challenge for food manufactur- food company whose imitation “yogurt” nutrition as the real thing.” facturers offer affordable processed ers is to maintain or improve gelling, violates the federal defi nition for dairy NMPF notes that the Kite Hill imita- and imitation cheeses with improved melting and stretching properties in foods and fails to provide the same nutri- tion delivers 40 percent more calories shred, melt and stretch in dairy and their cheese products without com- tion as real yogurt, NMPF says. and 10 more grams of fat compared to nondairy applications. promising on affordability,” says Mike NMPF says Hayward, California- an equivalent serving of vanilla yogurt, Ingredion says PRECISA 604 modi- DeMarcello, director of global texture based Kite Hill is illegally labeling its while providing one-third less protein fi ed potato starch provides manufactur- springboard at Ingredion. “PRECISA line of products and implying the nut- and zero calcium. ers with both performance and margin 604 modifi ed potato starch overcomes based foods are suitable substitutes for “This is another outrageous example improvements in formulations of block, this challenge and, at the same time, the real dairy foods it attempts to mimic. where plant foods misappropriate the sliced and pizza cheeses as well as vegan delivers a desirable eating experience NMPF President and CEO Jim Mul- names of real dairy products, but offer in- alternatives. The ingredient, an exten- across a wide range of processed and hern says Kite Hill’s line of products ferior levels of nutrition,” Mulhern says. sion of Ingredion’s PRECISA series of imitation cheese products.” “is doubly deceiving, fi rst as it declares “Adding a word or two in front of the starches, is manufactured in the United For more information, visit www. the use of ‘almond milk’ as the main name of a standardized dairy food does States and allows manufacturers to add ingredion.us. CMN ingredient in their foods, and second in not represent an appropriate common calling the resulting product ‘yogurt.’ A or usual name of the food,” adds Beth whitened slurry of nuts does not make Panko Briczinski, NMPF vice president Chr. Hansen unveils new FreshQ cultures milk, and adding bacteria to that mix and of dairy foods and nutrition. “It only MILWAUKEE — Chr. Hansen recent- more products and applications, includ- pouring it in a cup does not make yogurt.” adds confusion for consumers about the ly launched the second generation of ing yogurt, fresh cheese, kefi r, quark and In a letter sent this week to FDA, nutritional content of foods.” FreshQ cultures for clean-label fresh other fermented milk products. NMPF says that under existing federal NMPF also sent a letter to the dairy products. “The second generation of FreshQ regulations, the proper term for Kite California Department of Food and “We are happy and proud to launch has overcome some of the limitations we Hill’s products is “imitation yogurt Agriculture (CDFA) because Kite more than 10 new cultures, which will have identifi ed in the fi rst generation. product.” The FDA standard of iden- Hill is based in northern California, most certainly open the door to new In the development of the cultures, we tity for yogurt defi nes a product made and CDFA has jurisdiction over the markets and customers,” says Peter have also focused on selecting strains by culturing cream, milk, partially labels of products manufactured Thoeysen, marketing director, dairy that have a minimum impact on the skimmed milk, or skim milk, alone or and marketed in that state. CMN bioprotection, Chr. Hansen. process and help obtain the desired FreshQ works by inhibiting or post- fl avor,” Thoeysen says. DFA Cares donates milk to D.C. food bank poning the growth of yeast and mold in “They have stronger protective fresh dairy products. Chr. Hansen fi rst properties that make them well-suited WASHINGTON — Through its DFA truly an honor to make this donation, launched its FreshQ portfolio about in regions where the cold chain is under Cares Foundation, Dairy Farmers of which will help make milk available to fi ve years ago. FreshQ has gained rec- pressure,” Thoeysen adds. “Last but not America (DFA), a national dairy co- individuals and families in the D.C. area ognition for its outstanding protective least, they offer an alternative to even operative owned by family farmers, is who need it most.” properties against yeast and mold in an more chemicals and artifi cial preserva- donating one truckload, or the equiva- The donation was made possible all-natural way, the company says, add- tives than the fi rst generation and thus lent of approximately 4,300 gallons, through the DFA Cares Foundation, ing that by extending shelf life, FreshQ we can help more customers go natural.” of Northeast Area milk to the Capital which was established in 2005 as a also can help reduce food waste. The For more information, visit www. Area Food Bank in Washington, D.C., nonprofit charitable organization. new FreshQ cultures are optimized for chr-hansen.com. CMN which is part of the national Feeding Through the DFA Cares Foundation, America network. DFA provides disaster relief via product Urschel releases a new concept in slicing The milk donation, which was pro- and monetary donations, invests in the cessed at DFA’s Dairy Maid Dairy plant future of the industry with scholarships CHESTERTON, Ind. — As a result of its standard 8-station head requires no in Frederick, Maryland, was picked to students pursuing careers in dairy adaptive cutting technology approach, special adapters, the company says. up by representatives of the Capital and contributes dairy food and products Urschel is introducing a new concept The new slicing design concept does Area Food Bank on Wednesday, Jan. 3. for those in need. in slicing with its new MicroAdjustable not incorporate shims or shoes and The milk will help feed the more than “We especially appreciate donations Slicing Head (SL-14). offers tool-free knife changeovers, the 540,000 adults and children served by that include nutrient-rich foods like For use on the Model CC Slicer, company adds. The SL-14 weighs 35 the food bank throughout Washington, milk,” says Jody Tick, chief operating the new MicroAdjustable Slicing Head pounds (16 kilograms) and includes D.C., Maryland and Virginia. offi cer at the Capital Area Food Bank. (SL-14) features 14 cutting stations built-in lifting handles. “As a milk processor owned by fam- “Due to its perishability, milk is rarely that maximize slice engagement. This development allows processors ily farmers across the country, we are donated; yet, it’s highly requested by our This increased cutting station design the ability to increase productivity dedicated to helping provide nutritious clients, so this donation will go a long way delivers higher capacities versus without purchasing an additional slicer. food for family tables,” says Dave Staz, in helping provide solid nutrition for in- the standard 8-station cutting head. For more information, visit general manager, Dairy Maid Dairy. “It’s dividuals and families in our area.” CMN Switching over to the SL-14 from the www.urschel.com. CMN

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American Dairy Products Institute seeking nominations for Breakthrough, Merit awards

ELMHURST, Ill. — The American and development efforts, or market- dairy products industry. Anyone wish- trade, or any other innovation, as well Dairy Products Institute (ADPI) now ing programs. Entries will be received ing to make a recommendation for as participation in related industry or- is accepting nominations for its Break- in four categories: innovative milk- this year’s award should consider their ganizations, may be taken into account through Award and the ADPI Award of derived or whey-derived dairy ingredi- nominee’s role in promoting the use when nominating an individual for the Merit. Members, industry peers and ent products, innovative processing or of processed dairy products. Any sig- Award of Merit. Nominations for this others involved in the dairy products packaging of dairy ingredients, innova- nifi cant contribution to the industry in award must be received by March 9. industry are encouraged to nominate tive breakthroughs in R&D or quality the area of product development, mar- Complete award information along individuals and processors to recog- assurance of dairy ingredients and in- keting or promotion, manufacturing, with nomination links and forms are nize their outstanding work and dedi- novative marketing of a dairy ingredi- technological advances, equipment, available at www.adpi.org/Events/ cation to the dairy products industry. ent. Achievements must have taken packaging, transportation, storage or ADPIABIAnnualConference. CMN ADPI recognition awards will be pre- palace between Feb. 1, 2016, and Feb. sented during a recognition luncheon 1, 2018. Judging will be conducted by at the 2018 ADPI/ABI Annual Confer- individuals representing ADPI and Valio to pay ‘responsibility bonus’ for milk ence April 30 in Chicago. Dairy Foods magazine. The entry HELSINKI — Valio has announced register for Finnish cattle herds (Navesa). The Breakthrough Award for Dairy deadline is Feb. 15. that starting at the beginning of this This ensures that a veterinarian visits the Ingredient Innovation honors dairy The ADPI Award of Merit recogniz- year, it is paying 1 cent extra per li- farm at least once a year to assess the processors for innovative products, es individuals who have made an out- ter to dairy farmers who have proven well-being and health of the cows and manufacturing processes, research standing contribution to the processed themselves committed to responsible that the data are comparable between production through planned animal different farms. To receive the responsi- USDA reports milk price averages for 2017 health care and other measures. The bility bonus, each dairy farm also must aim, Valio says, is to promote the well- implement regular monitoring of the WASHINGTON — The simple average tail prices for conventional whole milk being and quality of life of animals. condition of their cows’ hooves, as well retail price for conventional reduced- in 29 U.S. cities in 2017 was $3.39 per At present, about 80 percent of as ensure that pain relief and sedatives fat (2-percent) milk for 29 U.S. cities gallon. The highest average price of Valio dairy farms are covered by these are given to calves as part of dehorning in 2017 was $3.33 per gallon, with a the year was $3.47 a gallon in Janu- reforms, with the goal to have all farms and that the procedure is carried out high of $3.40 in January and Febru- ary, while the lowest was December’s involved by 2020. Valio, the largest dairy under the supervision of a veterinarian. ary and a low of $3.28 in December, $3.35. Baltimore had the highest av- business in Finland and a major player in According to the production guide- according to data recently published erage retail price in 2017 for conven- the international dairy ingredients mar- lines, every new barn must be a free- by USDA’s Agricultural Marketing tional whole milk at $4.27 per gallon. ket, is owned by dairy cooperatives that stall barn, meaning that it is built so Service (AMS). Baltimore had the Kansas City, Missouri, and Minneapo- represent around 6,000 dairy farmers. that cows are freely able to spend time highest annual average retail price at lis also had average prices above $4. In addition to planned health care, outdoors to graze. As in previous years, $4.27 per gallon, while Cincinnati had Cincinnati had the lowest average re- Valio says promoting a better life for Valio also requires that animal feed the lowest at $2.18. The price data was tail price for conventional whole milk animals means that all the animals are be free of soy and genetically modi- collected by federal milk order market at $2.18. included in the centralized health- care fi ed organisms (GMOs). CMN administrators based on a survey con- Retail prices for organic whole milk ducted one day between the fi rst and in the 29 cities averaged $4.23 per gal- 10th of each month in selected cities lon in 2017, AMS reports, with a high Fonterra revises milk collections forecast or metropolitan areas. One outlet of of $4.31 in both January and February the largest and second largest food and a low of $4.14 in November. Four AUCKLAND, New Zealand — Fon- continuing to impact soil moisture and store chains and the largest conve- cities had average retail prices above terra Cooperative Group Ltd. recently pasture quality across the country, Fon- nience store chain were surveyed. The $5 per gallon for 2017: Pittsburgh at revised the forecast for its New Zea- terra says. Dry conditions are expected price represents the most common $5.36, Kansas City, Missouri, at $5.22, land milk collections for the current to continue, and even if the rain forecast brand in nonreturnable plastic con- New Orleans at $5.07 and Washington 2017/2018 season to 1,480 million for early 2018 delivers as expected, it tainers. at $5.02. The lowest annual average kilograms milk solids (kgMS), down will not be enough to bring production The simple average of monthly re- retail price for organic whole milk was from its forecast in November 2017 of back to previously anticipated levels, in Houston at $3.07 per gallon. CMN 1,525 million kgMS. Fonterra’s revised Fonterra adds. forecast of 1,480 million kgMS is down Fonterra has begun to take vol- around 4 percent from the 2016/2017 umes of whole milk powder off the season, which itself was negatively im- Global Dairy Trade (GDT) platform in From the Brine or pacted by weather conditions. response to lower milk supply and has Wet conditions experienced by farm- a program in place to manage sales Tower to the Pallet ers at the beginning of New Zealand’s both on and off GDT for the rest of Automation Solutions spring improved from late October and the season as a result of the current into November, but recent dry weather is weather conditions. CMN Robotic Cells Vision Systems Some prices improve at latest GDT auction Engineering & Design Services AUCKLAND, New Zealand — The metric ton FAS ($0.8464 per pound), Global Dairy Trade (GDT) price index down 7.3 percent. 640 lb. Cheese Box Stacker increased 2.2 percent, and some average • Cheddar: US$3,317 per metric ‡Proven Reapplication Technology commodity prices increased Tuesday ton FAS ($1.5046 per pound), down ‡Eliminates Safety/Ergonomic Issues following the latest auction on GDT, Fon- 2.1 percent. ‡Built to Last — terra’s internet-based sales platform. • Rennet casein: US$4,419 per met- Minimizes Downtime No lactose was offered at Tuesday’s ric ton FAS ($2.0044 per pound), down ‡Increases Your Productivity auction. The average prices achieved 1.1 percent. (1.5 Boxes Per Minute) across all contracts and contract peri- • Skim milk powder: US$1,699 per ‡Designed Within Your Budget ods, and the percent change from last metric ton FAS ($0.7707 per pound), month, are as follows: up 1.6 percent. • Anhydrous milkfat: US$6,405 per • Whole milk powder: US$2,886 per Contact Us! metric ton FAS ($2.9053 per pound), metric ton FAS ($1.3091 per pound), up A great place to work with people committed to excellence, creating positive Phone: 920-662-1682 down 0.2 percent. 4.2 percent. memorable experiences by providing Toll Free: 877-ZEPNICK “Personalized Automation Solutions.” [email protected] • Butter: US$4,501 per metric ton The next trading event will be FAS ($2.0416 per pound), up 0.6 percent. held Jan. 16. For more information, For more information please visit www.zepnick.com • Buttermilk powder: US$1,866 per visit www.globaldairytrade.info. CMN © 2018 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]) January 5, 2018 — CHEESE MARKET NEWS® 7 NEWS/BUSINESS

Innovation Center for U.S. Dairy now is accepting applications for sustainability awards

ROSEMONT, Ill. — The Innovation Processing and Manufactur- demonstrate instances where farms, dairy supply chains. Center for U.S. Dairy is accepting ing Sustainability –– This category cooperatives, processors or other dairy The 2018 winners will receive nominations for the seventh an- exemplifi es the triple bottom line of community stakeholders (either collab- expenses-paid trips to Chicago for nual U.S. Dairy Sustainability Awards sustainability: having demonstrated oratively or as a single entity) develop the awards ceremony held during the honoring exceptional dairy farms, steps to innovate, measure and commu- practical and effective solutions to 2018 Dairy Sustainability Forum in businesses and partnerships for their nicate progress. It provides replicable shared challenges and goals of the com- May, among other recognition and op- socially responsible, economically stories to benefi t the dairy community munities in which they live and work. portunities. viable and environmentally sound and actively engage with peers and Supply Chain Collaboration –– This An independent panel of judges practices. stakeholders to inform continuous category recognizes collaborative and will evaluate all nominations based on “The sustainability awards are a improvement industrywide. market-based partnerships to demon- measurable results and the potential great way to celebrate the diverse Community Impact –– This category strate that truly sustainable outcomes for other dairy farms and businesses ways in which the dairy community recognizes community efforts that im- benefi t the entire industry rather than to adopt the practices. Nominations reinforces our collective commitment prove lives and communities through any one customer or supplier. This also are evaluated for demonstrated to sustainable practices,” says Barbara their positive impacts on health and award highlights customer engage- learning, innovation and improvement O’Brien, president of the Innovation wellness, hunger relief, workforce ment through a collaborative farm, as well as scalability. Judges and spon- Center for U.S. Dairy and Dairy Manage- development, community volunteering cooperative and/or processor partner- sors will be announced soon. ment Inc. “Each year, the awards rec- and investment and/or environmental ship to benefi t all involved and provide To submit a nomination, visit ognize those farms and companies that stewardship. Successful nominations best-in-class examples of sustainable www.usdairy.com/awards. CMN are advancing positive and continuous change for dairy and for communities nationwide.” Nominations are open through UNITED STATES BANKRUPTCY COURT Feb. 12. All farmers and organizations EASTERN DISTRICT OF NEW YORK involved in U.S. dairy and those who ______promote dairy-related health and well- ) ness are eligible to submit nominations In re: ) ) in the following categories: G.A.F. SEELIG, INC., ) Dairy Farm Sustainability –– This ) Chapter 11 category recognizes leaders in socially ) responsible, economically viable and Debtor. ) Case No. 17-46968 environmentally sound dairy produc- ______) tion who exemplify a longstanding com- mitment to continuous improvement. 127,&(2) , '(%725·6027,21)25(175<2)25'(5 $ $87+25,=,1*$1'$33529,1* Successful nominations take a holistic 7+(6$/(2)&(57$,1$66(762)7+('(%725)5(($1'&/($52)$//3/('*(6237,216 &+$5*(6/,$%,/,7,(6/,(16&/$,06(1&80%5$1&(6$1',17(5(676%<35,9$7(6$/( approach to sustainability and provide % $33529,1*7+($66(7385&+$6($*5((0(17%(7:((1'(%725$1'%8<(5 & $33529,1* replicable results that can inspire posi- 7+($668037,21$1'$66,*10(172)&(57$,1(;(&8725<&2175$&76$1'81(;3,5('/($6(6 tive change industrywide. $1' ' *5$17,1*5(/$7('5(/,() ,, 327(17,$/$668037,21$1'$66,*10(172)(;(&8725< &2175$&76$1'81(;3,5('/($6(6$1'352326('&85($028176$1' ,,, 23325781,7<722%-(&7

PLEASE TAKE NOTICE, that G.A.F. Seelig, Inc., as debtor and debtor in possession (the “Debtorµ KDVÀOHG L D0RWLRQIRU(QWU\RIDQ2UGHU Negotiators meet $ $XWKRUL]LQJDQG$SSURYLQJWKH6DOHRI&HUWDLQ$VVHWVRIWKH'HEWRU)UHHDQG&OHDURIDOO3OHGJHV2SWLRQV&KDUJHV/LDELOLWLHV/LHQV &ODLPV(QFXPEUDQFHVDQG,QWHUHVWVE\3ULYDWH6DOH % $SSURYLQJWKH$VVHW3XUFKDVH$JUHHPHQW%HWZHHQ'HEWRUDQG%X\HU & $SSURY- to amend parts of LQJWKH$VVXPSWLRQDQG$VVLJQPHQWRI&HUWDLQ([HFXWRU\&RQWUDFWVDQG8QH[SLUHG/HDVHVDQG ' *UDQWLQJ5HODWHG5HOLHI WKH´0RWLRQ”) 'RF1R DQG LL DUHODWHG6FKHGXOHRI&RQWUDFWVDQG3URSRVHG&XUH$PRXQWV WKH´Contract Scheduleµ  'RF1R([KLELW& FRSLHV U.S.-Korea FTA RIZKLFKFDQEHREWDLQHGIURPXQGHUVLJQHGFRXQVHORUE\DFFHVVLQJWKH%DQNUXSWF\&RXUW·VGRFNHW 3/($6( 7$.( )857+(5 127,&( WKDW WKH 0RWLRQ VHHNV DXWKRULW\ IRU WKH 'HEWRU WR VHOO FHUWDLQ DVVHWV WR 'DLU\ODQG 86$ &RUSRUDWLRQ WASHINGTON — Negotiators are (“%X\HUµ DQDIÀOLDWHRI7KH&KHIV·:DUHKRXVH,QFE\SULYDWHVDOH WKH´Saleµ RQWKHWHUPVVHWIRUWKLQWKH$VVHW3XUFKDVH$JUHHPHQW DWWDFKHGWRWKH0RWLRQ7KH6DOHZLOOEHIUHHDQGFOHDURIDOOSOHGJHVRSWLRQVFKDUJHVOLDELOLWLHVOLHQVFODLPVHQFXPEUDQFHVDQGLQWHUHVWV meeting today to discuss amendments SXUVXDQWWRVHFWLRQ I RIWKH%DQNUXSWF\&RGHDVGHVFULEHGLQJUHDWHUGHWDLOLQWKH0RWLRQ and modifi cations to the United States- 3/($6(7$.()857+(5127,&(WKDWLQFRQQHFWLRQZLWKWKH6DOHWKH'HEWRUPD\VHHNWRDVVXPHDQGDVVLJQFHUWDLQFRQWUDFWVDQG Korea Free Trade Agreement (KORUS OHDVHVLGHQWLÀHGRQWKH&RQWUDFW6FKHGXOHWRWKH%X\HUSXUVXDQWWRVHFWLRQRIWKH%DQNUXSWF\&RGH7KH&RQWUDFW6FKHGXOHVHWVIRUWK FTA). WKHSURSRVHGFXUHDPRXQWIRUHDFKFRQWUDFWDQGOHDVHOLVWHG7KHLQFOXVLRQRIDSDUWLFXODUFRQWUDFWRUOHDVHRQWKH&RQWUDFW6FKHGXOHLVQRW DQDGPLVVLRQWKDWVXFKFRQWUDFWRUOHDVHLVDQH[HFXWRU\FRQWUDFWRUXQH[SLUHGOHDVHVXEMHFWWRVHFWLRQRIWKH%DQNUXSWF\&RGHDQGLV The U.S. delegation at the meeting is QRWDQDJUHHPHQWE\DQ\SDUW\WRDVVXPHVXFKFRQWUDFWRUOHDVHDQGWKH'HEWRUUHVHUYHVDOOULJKWVZLWKUHVSHFWWRWKHVDPH,QDGGLWLRQWKH led by Assistant U.S. Trade Representa- &RQWUDFW6FKHGXOHPD\EHPRGLÀHGVXSSOHPHQWHGRUDPHQGHGSULRUWRWKHFORVLQJRIWKH6DOHLQFOXGLQJZLWKRXWOLPLWDWLRQWRDGGRUUHPRYH tive for Japan, Korea and APEC Michael DSDUWLFXODUFRQWUDFWRUOHDVHRUWRPRGLI\DSURSRVHGFXUHDPRXQW Beeman. The Republic of Korea delega- 3/($6(7$.()857+(5127,&(WKDWDQ\REMHFWLRQWRWKH6DOHWKHDVVXPSWLRQDQGDVVLJQPHQWRIDSDUWLFXODUFRQWUDFWRUOHDVHWRWKH %X\HURUDQ\RWKHUUHOLHIUHTXHVWHGLQWKH0RWLRQLQFOXGLQJDQ\REMHFWLRQWRDSURSRVHGFXUHDPRXQWPXVWEHLQZULWLQJDQGÀOHGZLWKWKH tion at the meeting is led by Myung-hee %DQNUXSWF\&RXUWDQGVHUYHGRQWKHIROORZLQJSDUWLHVVXFKWKDWLWLVÀOHGDQGDFWXDOO\UHFHLYHGE\VXFKSDUWLHVon or before 4:30 p.m. Eastern Yoo, director general from the Ministry WLPHRQ-DQXDU\ WKH´2EMHFWLRQ'HDGOLQH”) L FRXQVHOIRUWKH'HEWRUDWWKHDGGUHVVVHWIRUWKEHORZDQG LL FRXQVHOIRUWKH%X\HU of Trade, Industry and Energy (MOTIE). 6TXLUH3DWWRQ%RJJV 86 //35RFNHIHOOHU3OD]DUG)ORRU1HZ

© 2018 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 8 CHEESE MARKET NEWS® — January 5, 2018 NEWS/BUSINESS

Grupo Lala acquires Brazil’s Vigor Alimentos Diversity is butter MEXICO CITY — Mexican-based Grupo the Vigor, Danubio, Faixa Azul, Serrabella, Lala S. A. B. de C. V. recently announced Leco and Amelia brands, among others. it has completed the acquisition of 99.9 Itambé Alimentos S.A. has more than percent of the shares of the Brazilian 66 years of experience in the market dairy company Vigor Alimentos S. A., and a portfolio of dairy products that in- including 50 percent of the shares of cludes powdered milk, condensed milk, Itambé Alimentos S.A., also a Brazilian milk caramel, yogurt, dairy products dairy company. and UHT milk under the Itambé brand. Founded in 1917, Vigor has a con- “We are very excited about the Vigor solidated infrastructure of more than acquisition,” says Scot Rank, CEO, Grupo 3,900 employees, three milk collection Lala. “I am sure that Lala and Vigor are centers, nine production facilities and a solid combination to build a leading 19 distribution centers reaching 47,000 company in Brazil of healthy and nutri- points of sale, with a strong presence in tious products, since they have the scale, the states of Sao Paulo, Minas Gerais portfolio, innovation and talent needed. and Rio de Janeiro, Brazil. Its portfolio With this acquisition, Grupo Lala of dairy products includes yogurt, cheese continues building a profi table busi- and other dairy products marketed under ness of value-added products.” CMN

DMK Group, Arla sign Mozzarella agreement Photo courtesy of American Dairy Association North East HARRISBURG, Pa. — Pennsylvania’s 2018 butter sculpture was unveiled this VIBY, Denmark — Arla Foods and Ger- for our German plants to produce in a week at the 102nd Pennsylvania Farm Show in Harrisburg. The sculpture, spon- man dairy company DMK Group recently more effi cient way,” says Ingo Müller, sored by the American Dairy Association North East (ADANE), highlights four signed a third-party manufacturing CEO, DMK Group. “Next to this, we are of the hundreds of career choices available to nearly 500,000 Pennsylvanians contract where DMK will produce 35,000 optimizing our portfolio towards more who work in the state’s agriculture sector. Using half a ton of donated butter metric tons of Mozzarella for Arla per value-creating products.” donated by Land O’Lakes, the sculptors crafted fi ve fi gures — an agronomist, a year at DMK’s Nordhackstedt site in This new collaboration is the result dairy farmer, a processor, a consumer and a cow — to embody this year’s theme, northern Germany. of increased global demand for Moz- “Strength is our Diversity.” As part of the agreement, DMK zarella both from consumers and the Pennsylvania Agriculture Secretary Russell Redding unveiled the sculpture will rebuild its Nordhackstedt site, foodservice industry, Arla says, adding with help from Lancaster County dairy farmer Maria Forry, Pennsylvania State which currently is half dedicated to that it expects the European Mozza- Dairy Princess Yvonne Longenecker of Blair County, and sculptors Jim Victor and Mozzarella production, to focus its rella market to increase from 600,000 Marie Pelton of Montgomery County. The sculptors began work in mid-December entire capacity on Mozzarella by late metric tons in 2017 to 720,000 metric to create the sculpture, which will remain on display until the end of the Farm 2018. This also will increase the sup- tons by 2022. Show. After the show, the butter will be moved to Reinford Farm in Juniata County ply of whey for the two companies’ “Arla is one of the world’s leading to be converted into renewable energy in the farm’s methane digester. CMN joint venture ArNoCo, which produces producers of Mozzarella cheese, and whey protein and lactose at a neigh- with this agreement we aim to build boring site and at Arla’s Denmark on that position to continue to provide Fonterra invests in Lithuanian dairy processor Protein site in western Denmark. Arla consumers and foodservice custom- will supply 300-350 million kilograms ers with quality Mozzarella in Europe, AUCKLAND, New Zealand — Fonterra line of high-value whey ingredients of milk annually and will pay DMK to Asia, USA and the Middle East,” says recently announced its purchase of a while opening up product options across produce 35,000 metric tons of Mozza- Peder Tuborgh, CEO, Arla Foods. 10-percent share in Lithuania’s largest Europe and the Middle East as well as rella each year. Further terms and conditions of the dairy producer, AB Rokiskio Suris. The more opportunities to produce higher- “We are re-shaping our footprint agreement are not disclosed. CMN cooperative says this secures a supply value products from New Zealand milk. The NZ$11.5 million investment is aligned with Fonterra’s goal to grow its global sources of milk in strategic loca- tions, enabling the cooperative to satisfy customer demand in markets closer to THE STANDARD OF EXCELLENCE those sources, Fonterra says. “Our New Zealand farmers will IN CHEESEMAKING SOLUTIONS always remain our primary source of milk, but increasingly we are supporting our growth and their returns through strategic partnerships in Europe, Latin Cheese RELCO provides a wide variety of cheese making America, Australia and China,” says John Vats Wilson, chairman, Fonterra. “These part- equipment and services for a comprehensive cheese nerships enable us to produce products plant design. Our cheese-technology experts will design in demand closer to the market, while ĂƉƌŽĐĞƐƐƚŚĂƚŝƐĐƵƐƚŽŵŝnjĞĚĨŽƌLJŽƵƌƐƉĞĐŝĮĐŶĞĞĚƐ͘ providing more opportunity for milk and milk products elsewhere.” Fonterra Rokiskio have had a fi ve- Block Cottage Draining/ Curd Tables Formersers Cheese Vats Salting Belts year commercial relationship prior to this investment. Horizontal Cheese Vats Rokiskio has three factories in Lithu- 10,000 - 80,000 capacity ania and produces cheese, butter, whey featuring OptiSet protein and milk powders. It is one of Technology the largest and most well-known cheese producers in Central and Eastern Europe, USA | The Netherlands | New Zealand | Brazil | +1 320.231.2210 | www.relco.net producing more than 30,000 metric tons ® THE RELCO ADVANTAGE of cheese each year. The company exports © COPYRIGHT 2015 RELCO is a registered trademark and L-TECH is a trademark of RELCO, LLC. to both Eastern and Western markets as well as producing a wide range of fresh For more information please visit www.relco.net dairy products for the Baltic region. CMN © 2018 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]) January 5, 2018 — CHEESE MARKET NEWS® 9 NEWS/BUSINESS

Millennials’ food spending favors convenient options, less dairy than other generations

WASHINGTON — USDA’s Economic and detailed demographic informa- and sugars and candies than the other ers, $144.37; Traditionalists, $158.70. Research Service (ERS) recently re- tion, including household income. The generations. On average, Millennials de- Millennials spent less on milk, yogurt leased a study detailing the food spend- researchers assigned each household voted 13.6 percent of their food-at-home and dairy than previous generations. ing habits of Millennials compared to to one of four generational cohorts expenditures to these three categories, The mean per capita expenditure on other generations. based on the age of the household compared with 12.4 percent by Gen milk for Millennials was $1.80 compared According to Annemarie Kuhns head responsible for grocery shopping: X’ers, 11.5 percent by Baby Boomers to $4.12 for Traditionalists, who spent and Michelle Saksena, the two leads Traditionalists, born before 1946; Baby and 11.2 percent by Traditionalists. the most per capita on milk. Tradition- on this study, Millennials –– those Boomers, born between 1946 and 1964; As Millennials’ wealth increased, alists also spent the most on yogurt at born between 1981 and the mid-2000s Gen X’ers, born between 1965 and 1980; they apportioned more of their food-at- $7.12 per capita compared to $3.32 for –– are now the largest, most diverse and Millennials, age 18 or older in 2014, home budget to vegetables, surpassing Millennials and $4.08 for Gen X’ers. and highly educated living generation, born between 1981 and 1996. Traditionalists when per capita income In the dairy category, the highest per whose purchasing behavior heavily The ERS report focuses on a data sub- reached about $30,000. Also, Millenni- capita expenditures were made by Baby infl uences the current retail landscape set of approximately 28,000 households, als’ fruit expenditure shares essentially Boomers at $4.55; whereas, Millennials and who will be an important driver in for which the data includes both UPC- matched those of Traditionalists, who al- spent signifi cantly less at $2.47. the economy for years to come. Their coded purchases and random-weight located the largest share to fruits. Among Additionally, Millennials reported grocery store habits may change as they items like fresh produce. all generations, Millennials devoted the eating out at a restaurant or bar ap- age, but current differences from older Overall, the study found that Millen- smallest share of food expenditures to proximately 30 percent more frequently generations could have implications for nials were spending signifi cantly less grains, white meat and red meat. than other generations. They also future food demand. per person on food-at-home purchases The report shows that the mean spent less time per day doing food ERS researchers used 2014 data from and making fewer trips to the grocery per capita total monthly expenditure preparation, presentation and clean the private research company Informa- store than older generations. Millen- on food-at-home per person varied up, on average 88 minutes compared tion Resources Inc. (IRI), which track nial shoppers generally purchased a by generation as follows: Millennials, to Gen X’ers who spent the most time household food-at-home purchases larger share of prepared foods, pasta, $93.89; Gen X’ers, $102.31; Baby Boom- at 143 minutes per day. CMN BECOME A DAIRY FOOD SAFETY EXPERT!

Fennimore Wisconsin For the fi rst time, the Laboratory Science Technician program will be 100% ONLINE for the spring 2018 semester! Classes start January 16.

LABORATORY SCIENCE TECHNICIAN Median earnings of $18.36 per hour! With a 100% job placement rate, food quality technicians are in high demand. Teaching students the ‘how’ and ‘why’ of laboratory testing is essential to public safety and food quality. Students enjoy rewarding work in a fast paced environment. – 30 Credit Program – Expert Instructors – Hands-on Training

Find out more online at www.swtc.edu/labtech

OR CONTACT LINDA KIOUS, INSTRUCTOR Phone 608.822.2610 – Email [email protected] Accommodations: 608.822.2631 (tdd: 608.822.2072) – [email protected]

This ACT program is 100% funded with a TAACCCT Round IV $19.9 million grant awarded by the U.S. Department of Labor’s Employment and Training Administration. This is an equal opportunity program; individuals with disabilities may request auxiliary aids and services by calling 711 or 800.947.6644 Voice/TTY. The product was created by the grantee and does not necessarily refl ect the offi cial position of the U.S. Department of Labor. The Department of Labor makes no guarantees, warranties or assurances of any kind, express or implied, with respect to such information, including any information on linked sites and including, but not limited to, accuracy of the information or its completeness, timeliness, usefulness, adequacy, continued availability, or ownership. Southwest Tech does not discriminate on the basis of race, color, national origin, sex, disability, or age in its programs and activities. The Equal Opportunity/Affi rmative Action Offi cer has been designated to handle inquiries regarding non-discrimination policies. Call 800-362-3322, Ext. 2315 (TDD: 608-822-2072) or write Southwest Tech, 1800 Bronson Blvd., Fennimore, WI 53809.

For more information please visit www.swtc.edu/labtech © 2018 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® — January 5, 2018 EVENTS

Anuga FoodTec to showcase resource Artisan Dairy Food Safety Plan Coaching effi ciency March 20-23 in Germany workshop scheduled for Feb. 7-8 in Ohio

COLOGNE, Germany — Anuga Food- topics such as optimizing production REYNOLDSBURG, Ohio — Cornell process. Trainers experienced in Tec, an international trade show for the processes, reducing energy and water University College of Agriculture and preventive controls for human foods food and beverage industry, is sched- consumption and minimizing food Life Sciences Dairy Extension is host- requirements will be present to review uled for March 20-23 at Koelnmesse in loss through ingredient, process and ing the Artisan Dairy Food Safety Plan topics and answer questions. Templates Cologne, Germany. packaging technology. The technical Coaching Workshop Feb. 7-8 at the (digital and paper) will be provided to Nearly 1,700 suppliers from more program is organized by Deutsche Bromfi eld Building Conference Center facilitate plan development. Attendees than 50 countries will present their Landwirtschafts-Gesellschaft (DLG), of the Ohio Department of Agriculture are encouraged to bring their current new products for the production and the German agricultural society. in Reynoldsburg, Ohio. or in-progress plans. packaging of all types of food and This year’s show will demonstrate This event is open to all artisan Guest speakers include Abby Snyder, beverage. The comprehensive range next-generation robotics technology and farmstead cheesemakers in the Ph.D., assistant professor and food of exhibits will be accompanied by a through every step of the manufacturing Mideast. safety fi eld specialist for the College of multi-faceted technical program in- chain, from incoming raw materials to The two-day workshop will provide Food, Agricultural and Environmental cluding workshops, conferences and outgoing fi nished product. key information on food safety spe- Sciences at The Ohio State University, guided tours. An expert forum titled “Topics, cifi cally designed for artisan/farmstead and Samuel D. Alcaine, Ph.D., assistant “Traditionally, process technology trends, technologies –– what’s mov- cheesemakers. It is intended for arti- professor for the Dairy Fermentations has been the more represented sec- ing today’s food industry?” will offer sanal cheese and dairy food producers Department of Food Science at Cornell tion at the trade fair,” says Katharina presentations and panel discussions who are preparing to create, or are University. Hamma, chief operating offi cer, Koel- on topics of current interest, including already developing, an FSMA compliant, Online registration is now open. The nmesse GmbH. “This year, there is convenience, food authenticity, modi- preventive control-based, food safety cost to register is $49. Questions may greater emphasis on food safety and fi ed atmosphere packaging, genome plan for their facilities. be directed to Tracy Enslen, American quality management, as well as food editing and high pressure processing. The goal of this workshop is to Dairy Association Mideast, at 614-301- ingredients. Visitors experience the A separate forum will be dedicated to provide food safety plan review and 8536 or [email protected]. entire production cycle, from how food ingredients and product develop- coaching sessions that guide attendees To register, visit dairyextension. basic ingredients are processed and ment and will address the topics of through each step in the development foodscience.cornell.edu. CMN how a product is made, all the way to clean labeling, personalized nutrition, the primary and secondary packing of texture design, enzymes in food produc- the fi nished product.” tion and functional foods. Wisconsin Specialty Cheese Institute The theme of this year’s exhibition For more information about seminar to address workforce strategies and technical program –– resource ef- Anuga FoodTec 2018, visit www. fi ciency –– will be showcased through anugafoodtec.com. CMN WISCONSIN DELLS, Wis. — The Gebert, learning and development Wisconsin Specialty Cheese Institute manager at MRA, an HR management (WSCI) February 2018 meeting will fi rm in Waukesha, Wisconsin, will share Washington State University to hold 32nd address issues of workforce planning insights on emotional intelligence and and hiring strategies. The meeting will its importance in hiring. She will pro- Advanced Cheese Making short course take place Friday, Feb. 16, at Chula vide strategies for how to interview for Vista Resort in Wisconsin Dells from EQ and discern if candidates possess PULLMAN, Wash. — Online regis- technology, cheese yield, sanitation, 9 a.m. to 3 p.m. WSCI member and skills in selected areas of competency. tration is open for Washington State regulatory and quality issues, product non-members are invited. “Regardless of product line, cus- University’s 32nd Advanced Cheese protection and more. Cheddar, Italian The morning session, Strategic tomer base or business model, every Making short course March 6-8. and continental cheeses will be dis- Workforce Planning: A Critical First company in every link of the Wisconsin The course is designed for expe- cussed. Attendees will participate in Step in Workforce Optimization, will cheese supply chain faces tough chal- rienced cheesemakers, supervisory, one full day of hands-on cheesemaking be presented by Thomas O’Rourke, lenges when it comes to developing a management, quality control and mar- at the WSU Creamery. president and CEO of Connolly Clarke workforce that enables success and keting personnel from commercial/in- The early registration deadline is LLC, a human capital advisory fi rm supports growth,” says Chris Roelli, dustrial plants. Instruction is provided Feb. 5, and the early registration fee in Madison, Wisconsin. He will offer WSCI president and owner of Roelli from leaders in the dairy production is $740. After Feb. 5, the registration insights on the Wisconsin labor market Cheese Haus in Shullsburg, Wisconsin. community. Previous cheesemaking fee is $790. and share goals and best practices, as Attendance is free for WSCI experience is required. For more information, visit www. well as an actionable workforce plan- members and $50 per person for non- The program will include: fi ltration creamery.wsu.edu/shortcourse. CMN ning process and tools. members. RSVPs should be made by Following a networking lunch, Feb. 9 to Kathy Brown at 262-740-2180 there will be a session titled Connect- or [email protected]. REGISTRATION NOW OPEN FOR ing EQ (Emotional Intelligence) to For more information, visit 2018 Short Courses the Selection Process. Andie Knight www.wispecialtycheese.org. CMN „ Cheese Making Registration open for Low Acid Canned  X Basic-Plus, Mount Vernon, WA; January 30 – February 1, 2018 (Designed for beginning cheese makers interested in farmstead and artisan Food regulations course at UW-Madison cheese production; includes field trip to licensed cheese making facility.) X 32nd Advanced, Pullman, WA; March 6–8, 2018 MADISON, Wis. — Registration is open LACF regulations as they pertain to (Designed for experienced cheese makers, supervisors, management, for the Better Process Cheese School shelf-stable process cheese manufac- QC and marketing personnel; includes hands-on cheese making.) (BPCS) March 27-28 at the University ture. „ Pasteurization of Wisconsin-Madison. The deadline to register is Feb. 27, The BPCS training course is designed 2018. Registration must be completed X Workshop, Pullman, WA; April 10–12, 2018 (NEW! Third Day Added!) to fulfi ll the Low Acid Canned Food online; no on-site registration will be (Designed for plant operators, maintenance, QC, management and suppliers. Days 1 and 2 cover vat and basic HTST systems; day 3 is optional for (LACF) regulatory certifi cation require- offered. HHST systems.) ments for process cheese manufacturing The standard rate for the course systems. It is intended for operators, is $575 per person. FRI sponsors and For more information, contact John Haugen supervisors and management in process federal/state employees receive a [email protected]; Phone (509) 335-5737; cheese manufacturing facilities, food discounted rate of $350. University Fax (509) 335-7525 or link to our website: safety professionals and regulatory of- of Wisconsin and State of Wisconsin www.creamery.wsu.edu/upcoming fi cials involved in audits, inspections or employees may attend for $90. LACF fi ling for process cheese products. To register online, visit www. For more information please visit www.creamery.wsu.edu/upcoming The BPCS training course will cover fri.wisc.edu. CMN © 2018 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]) January 5, 2018 — CHEESE MARKET NEWS® 11 PEOPLE

MMPA awards 2018 student scholarships Comings and goings … comings and goings

NOVI, Mich. — The Michigan Milk key component of the program is the Haden & Custance’s Chris Lins- versity of Wyoming with degrees Producers Association (MMPA) annu- completion of an internship at a dairy sen recently became the new vice in accounting and history. He has ally sponsors scholarships for members, farm different from the student’s home president of sales for the U.S. and consulted in the areas of complex their children and employees enrolled farm. MMPA also awards one scholar- Canada with. In his new role, Linssen fi nancial transactions, litigation sup- at Michigan State University and Purdue ship to a member or a child of a member will manage and strengthen a sales port, media and public relations since University. who is a student at Purdue University team to support Haden & Custance in December 2014 and also is a CPA. The scholarship fund aims to assist College of Agriculture. the cheese industry, as well as expand Marsh served as the CEO of Western students pursuing a career in the dairy The MSU First-Year Scholarship re- its presence into the meat and poultry Union Dairymen for 15 years. This fol- industry. cipients were: Jacob Arens, Westphalia, and seafood industries. He is based in lowed a seven-year stint as director of “Encouraging young people to Michigan; Gerrit Baker, Bryon Center, Green Bay, Wisconsin. fi nance and administration with the pursue careers in agriculture, specifi - Michigan; and Adam Wiles, Middleton, Previously, Linssen worked in the Almond Board of California. cally the dairy industry, is important to Michigan. meat industry in a variety of quality Wisconsin Department of Agri- MMPA. We feel it is vital to invest every The MSU First Year Employee Schol- control, HACCP and Operations man- culture, Trade and Consumer Pro- year to ensure a bright future for the arship recipient was Nolan Wieber, agement positions. Most recently, he tection (DATCP) Secretary Sheila dairy industry,” says Ken Nobis, MMPA Fowler, Michigan. worked for Marel, the Iceland-based Harsdorf has announced Keith Ripp president and dairy farmer from St. The MSU Second-Year Scholar- meat and poultry solutions-based as DATCP’s Assistant Deputy Secre- Johns, Michigan. “These scholarships ship recipients were: Cameron Cook, equipment company, serving in a tary. In this role, Ripp will oversee help students fi nd careers within Pewamo, Michigan; Morgan Luoma, territory sales role. Linssen holds a policy development and administra- the dairy sector and inspire them to East Leroy, Michigan; and Casey Tebos, bachelor’s degree in animal science tion and lead relations with external strengthen this industry.” Falmouth, Michigan. from the University of Wisconsin- stakeholders. Ripp began his new For the 2017-2018 academic year, The MSU Second-Year Employ- River Falls. position Jan. 1. MMPA awarded nine scholarships, total- ee Scholarship recipient was Hope The National Council of Agri- Ripp, a former state representative ing more than $21,000. The scholarship McAlvey, Carson City, Michigan. cultural Employers (NCAE) has has served as chair of the Assembly recipients were honored and introduced The Purdue University Scholarship selected Michael Marsh as the or- committee on transportation, chair of to MMPA members at the annual Lead- recipient was Jason Perkins, LaGrange, ganization’s new president and CEO. the committee on consumer protec- ers’ Conference Nov. 20 in East Lansing, Indiana. He has replaced Frank Gasperini, who tion, vice-chair for the committee on Michigan. Scholarship applications for the had led NCAE since September 2008. local government and a member of The MSU scholarships are for 2018-2019 academic year are due Sept. Marsh is a graduate of the Uni- the committee on agriculture. CMN students enrolled in the Dairy Man- 1. for the MSU scholarships. Purdue agement Program. Students in the scholarship applications are due Feb. dairy management program undergo 1 for current students. a two-year, hands-on training program For more information, for careers in the dairy industry. A visit www.mimilk.com. CMN

NEWS/BUSINESS COLLEGE OF AGRICULTURE, FOOD AND ENVIRONMENTAL SCIENCES November licensed cheese imports total 10 million kilograms, according to USDA 2018 Dairy Workshops and Special Training Courses WASHINGTON — The United States mold cheeses totaled 286,240 kilograms, imported 10.0 million kilograms of bringing the year-to-date total to 2.7 Pasteurization Short Course cheese subject to licensing require- million kilograms for imports of these (Feb. 1-2, 2018) ments in November, according to the cheeses. Register online at go.uwrf.edu/dairywkshp. latest data released by USDA’s Foreign Licensed imports of American- Deadline Jan. 11, 2018. Agriculture Service (FAS). Year-to-date type cheeses including Colby totaled This two-day course will provide in-depth training licensed cheese imports total 83.0 mil- 40,918 kilograms in November. for new pasteurizer operators. Successful completion lion kilograms. January-November licensed imports will meet ATCP 65.54, Wisconsin Administrative Licensed imports of Swiss and Em- of these cheeses totaled 102,005 Code for trained pasteurizer operator personnel. menthaler with eye formation totaled kilograms. 2.0 million kilograms in November. Cheesemaker’s Short Course November licensed imports of other (Feb. 5-9, 2018) January-November licensed imports For more cheese not-specifically-provided-for information: Register online at go.uwrf.edu/dairywkshp. of these cheeses totaled 21.8 million (NSPF) totaled 4.5 million kilograms. go.uwrf.edu/dairywkshp Deadline Jan. 15, 2018. kilograms. January-November licensed imports of Email: [email protected] November licensed imports of other cheese-NSPF totaled 33.1 million Phone: 715-425-4161 This five-day hands-on course offers instruction Italian-type cheeses totaled 1.3 million on basic dairy chemistry and composition, milk kilograms. microbiology, starter cultures and the manufacture kilograms, bringing the year-to-date November licensed butter imports of a variety of cheeses. Completion of this course total to 9.0 million kilograms. totaled 828,489 kilograms, bringing will give the student six month’s credit toward their November licensed Cheddar imports the year-to-date total to 6.4 million apprenticeship requirement for the Wisconsin’s totaled 784,677 kilograms. January- kilograms. cheesemakers license. This will be the only November licensed Cheddar imports November licensed imports of butter Cheesemaker’s course for 2018 due to scheduled renovations in the UW-River Falls Dairy Pilot Plant. totaled 7.9 million kilograms. substitutes totaled 196,230 kilograms, Edam and Gouda imports subject to bringing the year-to-date total to 3.2 HACCP Workshop licensing requirements totaled 697,887 million kilograms. (March 14-16, 2018) kilograms in November. January- FAS also reports that imports of high- November licensed imports of Edam tier cheese and other dairy products Pasteurization Short Course and Gouda totaled 5.8 million kilograms. totaled 3,315 kilograms in October and (August 23-24, 2018) Licensed imports of processed 27,137 kilograms from January-October. Gruyere in November totaled 335,824 Leading the year-to-date total is kilograms. January-November licensed high-tier imports of butter at 15,164 imports of processed Gruyere totaled kilograms, followed by other cheese- 8161 2.5 million kilograms. NSPF with 3,089 kilograms of high-tier November licensed imports of Blue imports through October. CMN For more information please visit go.uwrf.edu/dairywkshp © 2018 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® — January 5, 2018 NEWS/BUSINESS

European Union enacts legislation on ‘dumped,’ subsidized imports GreenSpace

BRUSSELS, Belgium — New Eu- distorted due to state interference. ness. But we must also protect our acquires Galaxy, ropean Union (EU) trade defense The European Commission says industry from unfair competition from ‘Go Veggie’ brand legislation recently entered into the purpose of this new legislation is imports, particularly from countries force, changing the way the EU to make sure that Europe has trade whose economies are signifi cantly TORONTO, — Canada-based GreenS- tackles “dumped” or subsidized im- defense instruments that are able distorted owing to state interference. pace Brands Inc. (GSB) recently signed ports from countries with signifi cant to deal with these state-induced The publication of country reports will an agreement to acquire all of the out- state-induced market distortions. distortions, which often lead to over- help us to put the new methodology standing shares of Galaxy Nutritional The European Commission also has capacities, while fully respecting the into practice. It will also give the EU Foods Inc., which owns the Go Veggie published its fi rst country report on legal framework of the World Trade industry a basis on which to make brand of cheese and dairy alternative such state-induced distortions. Organization (WTO). its case concerning countries where products in the United States. The legislation, which fi rst was “This is an important time in our distortions exist.” GreenSpace will purchase Go Veggie proposed by the commission a little trade defense policy. It signals the The commission recently released for a total of $17.7 million, comprised more than a year ago, introduces a new EU’s commitment to strong and effec- its fi rst country report, China, because of $4.5 million in cash, $7.62 million way of calculating whether dumping tive trade defense instruments,” says the bulk of EU’s anti-dumping activity in GreenSpace common shares and a has occurred in imports into the EU EU Commissioner for Trade Cecilia concerns Chinese imports. The next two-year vendor take back loan of $5.72 from countries where the economy is Malmström. “The EU is open for busi- country report will be on Russia. CMN million, carrying an 8.5 percent coupon. GreenSpace will issue 7.16 million common shares at $1.37 per share as part of the transaction, a 14.2-percent premium to the closing market price on Dec. 19, 2017. MORE NEWS, GreenSpace will purchase Go Veggie from Mill Road Capital, a Greenwich, Connecticut-based private investment MORE SOLUTIONS, fi rm focused on investing in and part- nering with publicly traded micro-cap companies. Mill Road will become the MORE CHOICES! largest shareholder of GreenSpace as a result of this transaction. “We couldn’t be more excited to add Go Veggie to the GSB family of brands. Choose the Best... With the acquisition of Go Veggie, we Cheese Market News. enter our most sought after vertical, plant-based dairy alternatives,” says Mat- Because the Right News Matters! thew von Teichman, CEO, GreenSpace. “The addition of Go Veggie adds a profi t- We fill our newspaper each week with news able pre-existing U.S. platform that will “that is all about YOU.” The weekly news coverage and enable us to launch our most innovative and unique brands into the U.S.” support you receive from CHEESE MARKET NEWS The acquisition is scheduled to close is unmatched in the industry. in January 2018, subject to satisfaction We take serious news, add in analysis, attention to of customary closing conditions and detail, passion and integrity to deliver the highest approval of the TSX Venture Exchange. level of coverage and service in the cheese business! Financo Inc. has acted as the exclusive advisor to Galaxy and Mill Road. CMN CALL US TODAY to discuss your marketing needs or Südpack acquires to subscribe. Seville Flexpack OAK CREEK, Wis. — Germany-based Südpack Verpackungen GmbH und Co. KG, a global provider of fl exible pack- aging solutions, recently acquired Oak Creek, Wisconsin-based Seville Flex- pack Corp., a converter and provider of fl exible packaging solutions with more than 40 years of experience in printing CHEESE MARKET NEWS® SUBSCRIPTION FORM: and processing. 1 Year Rates (52 issues) 2 Year Rates (104 issues) ELECTRONIC 1 Year Rates (52 issues) Südpack says the acquisition will 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) strengthen its business in the United F $330 (International) F $525 (International) F $210 (Email With 2nd Class Mail Service Only)

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317.831.4610 1515 Hancel Parkway • Mooresville, IN 46158 317.831.4630 [email protected] 317.831.4930 www.centrifugesupplies.com Dairy Procurement Manager Savencia Cheese USA is seeking a Dairy Procurement Manager to manage all dairy ingredients and non-dairy processing ingredients for their cheese manufacturing plants. Savencia Cheese USA LLC is a premier producer of specialty cheeses and maker of the Alouette, CHEESE/DAIRY 12 CHEESE/DAIRY 12 Chavrie, Ile De France and Supreme brands. We are a subsidiary of Groupe Savencia - a $5 • • billion multinational company headquartered in Paris, France. Groupe Savencia is a family owned company that employs 19,000 people in 29 countries. Employment at Savencia Cheese offers a good balance of having the resources of a large international company with a day to day entrepreneurial spirit. We utilize the latest technology and deep culinary expertise to meet consumers’ expectations in great taste, convenience and nutrition while staying committed GOT CHEESE? to the highest quality standard. For more information about the company, please visit savencia-fromagedairy.com. We purchase scrapscrap cheesecheese (fish(fish bait/animalbait, floor sweeps, feed), etc.) KEY RESPONSIBILITIES: undergrades and off spec. • Manage milk and cream procurement for three manufacturing sites for feed. We can pick up on a cheese. We can pick up on a •&RRUGLQDWHHI¿FLHQWVFKHGXOLQJRIORDGV spot, weekly or or monthly monthly basis. basis. •0DQDJHPLONVDOHVDVVXULQJRSWLPXPUHWXUQDVQHHGHG •'HYHORSDQGPDQDJHJRDWPLONSDWURQSURJUDP BIG REWARD OFFERED Please contact: •0DQDJHWKHGDLU\DFFRXQWLQJIXQFWLRQV •6XSSRUWUHFRPPHQGDQGLPSOHPHQWGDLU\ULVNPDQDJHPHQWVWUDWHJ\ FOR YOUR... [email protected] •6RXUFHDQGSXUFKDVHDOOSURFHVVLQJQRQGDLU\LQJUHGLHQWV (866) 547-6510 •,GHQWLI\DOWHUQDWHVRXUFHVRUVSHFL¿FDWLRQVRIVXSSO\IRUSRWHQWLDOFRVWVDYLQJVTXDOLW\ • Cheese Trim • Cheese Fines LPSURYHPHQWVDQGRULPSURYHGHI¿FLHQFLHV • #1 and Undergrades • Close Coded Products QUALIFICATIONS/EXPERIENCE: •%DFKHORU¶VGHJUHHEXVLQHVVDGPLQLVWUDWLRQRUUHODWHG¿HOG • Natural, Processed, •(LJKWWRWHQ\HDUV¶GDLU\LQGXVWU\UHODWHGH[SHULHQFH Imitation or Flavored •1HJRWLDWLRQVNLOOVDSSOLHGWRYHQGRUPDQDJHPHQW •3UREOHPDQDO\VLVDQGSUREOHPUHVROXWLRQDWERWKDVWUDWHJLFDQGIXQFWLRQDOOHYHO Call Dean, Eric, Pat or Wade: •$GYDQFHGFRPSXWHUSUR¿FLHQF\±6$3H[SHULHQFHSUHIHUUHG (877) 914-5400 • Excellent interpersonal and communication skills. horizonsalesinc.com www.whalenfoodsinc.com &RPSHWLWLYHEHQH¿WVDUHRIIHUHGWKH ¿UVWGD\RIHPSOR\PHQW3OHDVHHPDLO KU#VDYHQFLDFKHHVHXVDFRP

STORAGE 13 - Equal Opportunity Employer - • Neither this job posting nor any submission of your resume should be construed as an offer or guarantee of employment. © 2018 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® — January 5, 2018 NEWS/BUSINESS

PRICES a bottom, prices will struggle to move EU ag outlook predicts dairy export growth higher due to burdensome stock levels Continued from page 1 BRUSSELS, Belgium — Increasing whey concentrates. More dairy products in Europe and the United States. global and domestic demand and af- also will be used as ingredients to meet Faulman agrees, saying the domestic fordable feed prices could open the way the rising demand for processed foods Faulman says referencing the most supply of NDM is enough to keep prices for some expansion of the European such as pizza, prepared meals, pastries recent December milk production in check and potentially lend itself to Union’s dairy sector, despite diffi culties and cakes. However, direct consumption report, while Idaho showed a small further weakness. linked to high price volatility, according of fl uid milk will continue decreasing, decline, moderate growth in states like “I think it’s a supply issue that lower to a recently-published report by the the outlook predicts. Minnesota and Wisconsin will weigh prices have yet to solve,” he says. European Commission from the 2017 Sustained EU and global demand on cheese. CME butter, meanwhile, is a prod- EU Agricultural Outlook Conference is expected to drive an increase in EU Dorland notes there is more cheese uct that is still in high demand, with that took place here Dec. 18-19. milk production below 1 percent per capacity online at the start of this year prices settling at $2.2375 per pound Despite diffi culties faced in recent year, or 1.4 million metric tons, on aver- versus last year. on Friday. years, growing global and EU demand age depending on weather and market “We had a tough time keeping mar- “As cheese markets attempt to locate are expected to support world dairy mar- conditions. Opportunity for the EU to in- kets in balance at the start of 2017, and stable ground and dry products markets kets in the long term. However, world crease production is limited by the need it seems that could get worse in 2018,” continue to falter, the butter markets market price variability will continue, for sustainable use of natural resource, Dorland says. “Last year, the United remain the lone commodity stalwart, and short-term market imbalances can- the report adds. At the same time, it also States relied heavily on exports to keep starting 2018 in steady to bullish fash- not be ruled out, the outlook report says. predicts there will be gradual changes the gaps between production and domes- ion,” Dairy Market News says. The outlook predicts that through in production systems and a signifi cant tic consumption in check — that could Dorland says she anticipates butter 2030, the EU will supply close to 30 rise in organic production in response be more challenging this year as Europe to remain near prior-year levels as it’s percent of the increase in world im- to consumers’ expectations. could have more cheese to market.” still in high demand. port demand for whole milk powder, Global trade in whole milk powder, CME nonfat dry milk (NDM) prices, “Weather and feed quality could skimmed milk powder, cheese and but- skimmed milk powder, cheese and but- which have been in the mid-$0.60s, affect butter — both of which we are ter. Including whey powder and fresh ter is expected to grow on average by 1 settled at $0.6700 per pound on Tuesday seeing in markets today,” she says. dairy products, EU exports are expected million metric tons of milk equivalent and moved up to $0.6800 on Friday. “That is keeping buyers nervous about to grow on average by more than 400,000 per year, signifi cantly lagging average Kurzawski says he thinks the bottom prices this year and likely prices sup- metric tons of milk equivalent per year, growth seen for almost all products in already has been reached for NDM. ported near current levels until there mainly in cheese and skimmed milk the last 10 years, the report says. The one McCully says while he thinks NDM is some sign that there is more butter powder. exception is butter, which is expected and SMP prices globally are nearing available to the marketplace.” CMN Close to 900,000 metric tons of milk to expand trade faster than it has in the per year will be needed to satisfy the last decade. The outlook says China will growth in EU domestic use, mainly for remain the world’s leading importer of dairy processing in the state would cheese and the processing of other dairy dairy products, and shipments to China STUDY markedly increase the marginal value products such as dairy desserts, milk are expected to increase considerably, Continued from page 1 of milk produced in Pennsylvania now powders, infant formula, protein and although less than in the past. CMN being shipped out of state. That would within Pennsylvania’s dairy industry. generate economic benefi ts for the state Arla Foods enters joint venture in Indonesia The Center for Dairy Excellence (and) enhance the marginal value of is a nonprofi t organization initiated milk for Pennsylvania dairy producers VIBY, Denmark — Arla Foods recently a strategic growth region in its Good by the Pennsylvania Department of by about $28.8 million annually, accord- announced it has established a joint Growth 2020 strategy, and the newly- Agriculture in 2004. Bringing together ing to our fi ndings.” venture with PT Indofood CBP Suk- signed joint venture agreement is set people from more than 40 different An investment in dairy processing ses Makmur Tbk (ICBP), one of the to expand Arla Foods’ presence in this dairy organizations in Pennsylvania, also would reduce hauling costs for leading fast-moving consumer goods market. the center’s mission is to enhance the Pennsylvania dairy producers, with (FMCG) companies and dairy players “We are pleased to enter into a profi tability of the dairy industry by the Reading and State College plant in Indonesia. partnership with ICBP who has strong empowering people, creating partner- scenarios proposed in the study re- The new joint venture company is experience with dairy and has an ex- ships and increasing the availability ducing hauling costs by an estimated called Arla Indofood Sukses Makmur. tensive FMCG distribution network in and use of resources. $5.9 million per year, the study says. The shareholding composition will be 50 Indonesia with access and relationships “Substantial incentives appear to The combined estimated returns percent plus one share of the company to all key retailers. Teaming up with exist for additional processing capacity generated by the increased marginal owned by Arla Foods and 50 percent ICBP will allow us to offer our high- to locate in Pennsylvania,” say the three milk value and reduced hauling costs minus one share by ICBP. The joint quality dairy products to more Indone- authors of the study. “Based on our fi nd- would support a plant investment of venture will handle sales, distribution sian consumers,” says Tim Ørting Jør- ings, an investment in two cheese plants about $433 million per year, according and production of dairy products. gensen, executive vice president of Arla — one in the State College area and to the study. Arla notes that Southeast Asia is Foods’ international business. CMN one in the Reading area — may result The dairy processing analysis study in the largest reduction in supply chain is the fi rst released from a series of costs, offering the strongest incentives information resulting from the Penn- Come to the We have been connecting the industry for the new processing capacity.” sylvania Dairy Industry Study being to the right separators for over 85 years! experts when Based on dairy product demand and conducted by Nicholson, Stephenson you’re talking Honest ideas; fair pricing; 2016 milk production capacity, Nichol- and Novakovic. The Pennsylvania De- grassroots experience. son, Stephenson and Novakovic found partment of Agriculture and Center for Separators! It’s just good business. that investing in two plants processing Dairy Excellence have commissioned Building a better bottom line by offering: volumes of 4 million pounds of milk the three researchers to provide insight • Separators • Installation & Start Up per day and producing non-American on opportunities and inhibitors to grow- • Clarifiers • 24/7 Trouble Shooting types of cheese (Italian and specialty ing and strengthening Pennsylvania’s • Centrifuges • Family Held Since Early 70s • “Unbeatable,” Competitive Pricing cheeses) would result in the largest dairy sector, which serves as the largest reduction in supply chain costs. These segment of Pennsylvania’s agriculture plants would reduce hauling costs for industry, generating about $6 billion in Please call today Pennsylvania dairy producers by an annual economic returns. for a custom quote. Dave Lambert at 920.863.3306 or estimated $5.9 million per year, based A complete copy of the dairy pro- Dick Lambert at 920.825.7468 on the study fi ndings. cessing analysis, along with other “Pennsylvania is one of the few major information about the comprehensive GREAT LAKES SEPARATORS, INC. dairy states that are net exporters of raw Pennsylvania dairy study, is avail- E1921 County Road J • Kewaunee, WI 54216 • 920.863.3306 Email: [email protected] • Fax 920.863.6485 milk,” Stephenson said at a recent Dairy able at centerfordairyexcellence.org. Listening Session where he discussed Click on “Dairy Information,” then on For more information please email [email protected] the study fi ndings. “Having additional “Pennsylvania Dairy Study 2017.” CMN © 2018 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]) January 5, 2018 — CHEESE MARKET NEWS® 15 NEWS/BUSINESS

Penn State Extension offers free data tracking system for small-scale cheesemakers By Mallory Leonard years in Wisconsin, where cheesemak- State Cheese Tracking System (PSCTC). This is a step she claims people often ers are required to have a cheesemaker’s The system consists of Microsoft miss as they make the cheese but do UNIVERSITY PARK, Pa. — Kerry Kay- license, earned upon completion of a Word documents and Excel spread- not taste it before it goes to sale. She legian, dairy foods extension specialist program that includes the importance sheets set up to record, track and wants to see small-scale cheesemakers at Penn State’s College of Agricultural of tracking various data throughout the evaluate data for milk composition all sampling what they’re making. Sciences, has developed a downloadable cheesemaking process. After moving and quality; times, temperatures and The PSCTC is free to download at data tracking system for small-scale to Pennsylvania, she realized that this pH measurements observed during the Penn State Extension’s website. Kay- cheesemakers. was not the case for cheesemakers in cheesemaking process; processing after legian says she has had requests for Kaylegian lived and studied for many other states. the initial cheesemaking day, including this system from cheesemakers all over, While working with some of the brining, washing, turning, aging and and even from a yogurt manufacturer, dairy producers in her area, Kaylegian mold development; cheese chemical which makes her think this system WCMA discovered they had diffi culty answering composition and cheese sensory at- can have more application outside the some basic troubleshooting questions tributes. cheesemaking world. Continued from page 1 because they were not tracking data Kaylegian emphasizes that the Kaylegian credits Lisa Caprera, or performing sensory analysis from templates are easily customized to Birchrun Hills Farm, Caputo Brothers “WCMA members recognize educa- batch to batch. suit the needs of the individual, small- Creamery and Hidden Hill Dairy for tion as the key to the future success “They produce a poor batch of cheese scale cheesemaker. One of her favorite their contributions to the development of the dairy processing industry, and –– or an exceptional batch –– and they components of the system is the sensory of the PSCTC. we’re proud to invest in projects that may not be sure exactly how they did it. evaluation guide, which provides the To download the PSCTC, vis- will help deliver the skilled dairy plant I realized there are a lot of things that cheesemaker with basic information for it extension.psu.edu/cheese- workers we need nationwide,” says John I took for granted about cheesemak- starting and recording sensory analysis. tracking-system. CMN Umhoefer, executive director, WCMA. ing in working with some of the bigger The College of Agriculture, Food and companies that these guys just do not GFSI launches partnership with Argentina Environmental Sciences at UW-River have time to record,” Kaylegian says. Falls reinstated its Food Science and Several of the cheese producers PARIS — The Global Food Safety Ini- A three-fold focus has been defi ned Technology program in 2016 and offers she encountered consisted of only two tiative (GFSI) recently announced the for this partnership: to build food a food processing technology minor. people, and often these people also were launch of a public-private partnership safety capacity in Argentinian facili- The school’s dairy processing plant running a dairy farm. with the Argentinian Ministry of Agri- ties; to collaborate on national events also hosts continuing education classes Seeing a need for better record keep- business. The two entities have signed to develop awareness on food safety focused on pasteurization, cheesemak- ing among small-scale cheesemakers, a letter of intent to work together on standards as well as programs for small ing and food safety. Kaylegian wrote and submitted a grant a national training program based on and medium sized enterprises; and To provide students in all programs proposal to the Northeast Sustainable GFSI’s Global Markets Programme, as to strengthen the “Argentina Qual- with a hands-on learning experience, Agriculture Research and Education well as to collaborate on national food ity Stamp,” a quality seal that distin- UW-River Falls plans to fully renovate program within USDA. She was awarded safety events, with the aim to strengthen guishes food made in Argentina meet- its dairy processing plant, featuring the funds necessary to develop the Penn food safety in Argentina. ing specifi c quality standards. CMN new automation, piping and equipment. The project is estimated to cost $4 mil- lion, and $3.1 million already has been raised. Construction is slated to begin in June 2018. “Bridging this gap is a critical step, not only in getting the dairy pilot plant built, but in meeting our industry’s work- force development needs,” Umhoefer says. “WCMA is proud to support the project, and invites members to match — or surpass — our gift to get the plant up and running and students learning as soon as possible.” Umhoefer notes that matching gifts of any amount will be accepted over the next three years. For more informa- tion, call 608-286-1001 or email jum- [email protected]. CMN

NASS Continued from page 1 higher than October production on an average daily basis. California led the nation’s butter production with 42.1 million pounds in November, down 0.7 percent from its production a year earlier, according to NASS. Production of nonfat dry milk suit- able for human consumption totaled 140.5 million pounds in November, up 9.7 percent from production a year ago. Skim milk powder production totaled 41.8 million pounds, down 11.9 percent from a year earlier, NASS reports. CMN © 2018 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® — January 5, 2018 NEWS/BUSINESS

World Championship Cheese Contest entry deadline is Jan. 31 RPI edges higher

MADISON, Wis. — World Champion- competition from countries that have ensure that every cheesemaker from in November due to ship Cheese Contest organizers are never participated in the contest in every part of the world has the oppor- positive outlook for sending out fi nal calls for contest years past.” tunity for expert technical evaluation entries as the Jan. 31 deadline ap- Organizers credit new cheese and a chance at the title –– World business conditions proaches. Entries can be submitted at classes for increased interest in the Champion Cheese!” www.worldchampioncheese.org. competition. In 2018, contest judges The contest uses MyEntries, a WASHINGTON — With restaurant The World Championship Cheese will evaluate 121 classes of dairy secure online entry system that also operators becoming increasingly con- Contest, hosted by the Wisconsin products, including new categories for offers competitors real-time scoring fi dent about business conditions in the Cheese Makers Association (WCMA), traditional waxed and natural rinded results. The fee for online submissions months ahead, the National Restaurant will be held March 6-8 at the Monona Cheddars, Romano, Paneer, an open is $65 per product, a savings of more Association’s Restaurant Performance Terrace Convention Center in Madison, class for hard cheeses with natural than 15 percent off the cost of paper Index (RPI) posted a modest increase Wisconsin. rinds and various goat and sheep’s entry. in November. The RPI stood at 101.1 “We’re on track to break all previous milk cheeses. To enter, submit the forms on in November, up slightly from 100.9 Contest entry records,” says Kirsten “As consumer trends and the craft www.worldchampioncheese.org by in October. Strohmenger Henning, WCMA events of cheesemaking evolve, so too does the Jan. 31. For more information, Although the overall RPI increase manager. “We’re especially excited World Championship Cheese Contest,” call 608-286-1001 or email khen- was modest in November, some key to see cheesemakers entering the says Henning. “These adaptations [email protected]. CMN indicators registered notable im- provements, the association says. Restaurant operators reported their strongest same-store sales perfor- mance since June. Also, nearly one- half of operators expect their sales to be higher in six months, while their outlook for the overall economy im- proved to its strongest level in three years. The Current Situation Index, which measures current trends in four indus- try indicators (same-store sales, traf- fic, labor and capital expenditures), stood at 99.6 in November, up from MARCH 6–8 99.5 in October. The Expectations Index, which measures restaurant 2018 operators’ six-month outlook for four industry indicators (same-store sales, employees, capital expenditures and business conditions), stood at 102.6 in November, up 0.3 percent from Octo- ber. This marks the third consecutive monthly increase in the Expectations Index, which is at its highest level in nine months. Forty-eight percent of restaurant operators reported a same-store sales increase between November 2016 and November 2017, up from 38 percent in October. However, operators reported a net decline in customer traffi c for the eighth consecutive month and capital spending also was somewhat dampened. Fifty percent of operators said they made a capital expenditure for equipment, expansion or remodel- ing during the last three months, down from 67 percent who reported similarly last month. Restaurant operators are becom- ing increasingly optimistic about both business conditions and the direction of the economy. Forty-six percent of operators expect to have higher sales in six months, up from 44 percent in October, while only 9 percent expect ENTER ONLINE NOW! their sales volume to be lower and WORLDCHAMPIONCHEESE.ORG 45 percent think their sales will remain about the same. Thirty-seven ENTRY DEADLINE: JANUARY 31, 2018 percent of operators expect economic conditions to improve in six months, up from 32 percent last month and THANK YOU TO OUR CONTEST SPONSORS: the highest level since December 2016. Only 6 percent think economic conditions will worsen in six months, which resulted in the strongest net positive outlook for the economy in For more information please visit www.worldchampioncheese.org three years. CMN © 2018 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])