Volume 37 August 11, 2017 Number 30

Sheep industry sees growth

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A By Rena Archwamety great opportunity for high- the industry. 2 million pounds of sheep’s milk end artisanal cheeses thanks The United States produces cheese produced each year. INSIDE MADISON, Wis. — As interest to a large university, several a very small amount of sheep’s “But we are importing 53-73 in artisan cheese continues to large medical employers and milk and sheep’s milk cheeses, million pounds — that’s 28-38 ✦ Conventional dairy grow, cheesemakers are taking a nationally-known music fes- but in recent years it has been times as much sheep’s milk ads down 10 percent. the opportunity to diversify tival that all provide an ideal importing 40-60 percent of the cheese imported than what For details, see page 3. their offerings through new marketing base. world’s sheep’s milk cheese is produced here,” he says. varieties, fl avors or milk types. “I would like to see us do a trade every year, according “This would seem to indicate ✦ Guest column: This trend has garnered the better job of really enlightening to David Thomas, professor tremendous opportunity for Has whey become attention of domestic dairy people and improving availabil- of sheep management and domestic production.” the new pork belly? sheep producers, a small and ity. I think people are willing genetics at the University of However, he notes that op- For details, see page 4. relatively young industry that to pay for it,” says Kieffer, who Wisconsin-Madison. This spring portunity may not be as simple also sees new opportunities also is interim administrator Thomas presented a webinar as it seems based on these ✦ Retail WATCH Exclusive: for increasing demand for new of the Sheep Dairy Association on sheep’s milk and sheep’s numbers. One of the real chal- Salemville Cheese cheeses. of Wisconsin and president of milk cheese opportunities, lenges in the U.S. dairy sheep Cooperative expansion Laurel Kieffer, who milks the Dairy Sheep Association of sponsored by the American industry is the small number of doubles its footprint. about 100 sheep on her Dream North America. Sheep Industry Association’s producers, most of which are For details, see page 5. Valley Farm in Strum, Wiscon- The Dairy Sheep Associa- Let’s Grow Program. (Visit spread out with only about one ✦ FDA to exercise discretion sin, says there is not much tion of Wisconsin formed last http://www.sheepusa.org/Gro- or two in many states with the in UF milk labeling on cheese. sheep’s milk cheese availability August with the help of the wourflock_Resources_Edu- exception of concentrations in For details, see page 12. in areas like nearby Eau Claire, Wisconsin Department of Ag- cationalWebinars to view the Wisconsin and New England. Wisconsin, though she sees riculture, Trade and Consumer presentation.) Also, he explains that there is Protection (DATCP) as a means “We’re far and away the no program in North America to support Wisconsin’s dairy greatest market for sheep milk for organized milk recording sheep industry and promote cheese in the world,” he said or genetic improvement for Wisconsin State Fair cheese sheep’s milk products in the during his March presentation, dairy sheep. state. The new association where he also noted that the “Marketing of sheep’s milk auction raises record $56,760 was a 2017 recipient of a “Buy North American dairy sheep when you’re an isolated sheep Local, Buy Wisconsin” grant, industry is fairly new, with the producer is diffi cult,” he says. WEST ALLIS, Wis. — Team Lake Country Dairy, Schuman Cheese, and it currently is working on fi rst commercial dairy sheep “One of the things that every- Turtle Lake, Wisconsin, was named the 2017 Grand Master Cheese marketing kits for the 2017 farms forming in the mid-late one must do is make sure that Maker during the Blue Ribbon Cheese & Butter Auction Thursday at holiday season for cheesemak- 1980s. they have a stable market Wisconsin State Fair Park. Plant Manager Gary Gosda accepted the ers, grocery stores and specialty While there are no offi cial for that sheep milk — either award on behalf of Team Lake Country Dairy for Monteau, the fi rst- shops to help promote sheep’s USDA numbers on dairy sheep process it themselves or fi nd place entry in the Smear Ripened Cheese class at the 2017 Wisconsin milk cheeses and products. It operations in the United States, a local processor for sheep State Fair Cheese & Butter Contest. also plans to bring in sheep Thomas estimates there may milk — before they enter that Each blue ribbon entry from the contest sold during the event, farmers to do demos in grocery be around 125 U.S. farms cur- business.” which raised a record total of $56,760 for student scholarships and stores and boost exposure for rently milking sheep and about Turn to SHEEP, page 10 a dairy promotions at the Wisconsin State Fair. Chr. Hansen purchased 22 pounds of Monteau for $50 per pound for a total of $1,100. Other auction results include: Mild Cheddar: Dan Stearns, Agropur, Weyauwega, made the 42 Milk production forecasts Canada has new pounds of Mild Cheddar purchased by Masters Gallery Foods for $60 TRQs, processor per pound for a total of $2,520. lowered for 2017, 2018 support with CETA Swiss Styles: Marc Druart, Emmi Roth, Monroe, made the 20 pounds WASHINGTON — With slow growth in milk per cow that more of Roth Petite Swiss purchased by Wells Fargo for $60 per pound for than offsets increases in dairy cow numbers, USDA lowered its OTTAWA, Ontario — Ca- a total of $1,200. U.S. milk production forecasts for 2017 and 2018 in its “World nadian Minister of Inter- Flavored Soft Cheese: Steve Buholzer, Klondike Cheese Co., Monroe, Agricultural Supply and Demand Estimates” report released national Trade Francois- made the 10 pounds of Odyssey Peppercorn Feta purchased by Emmi Thursday. Philippe Chamagne recently Roth for $100 per pound for a total of $1,000. For 2017, USDA projects milk production will total 215.7 billion announced the allocation Flavored Goat Milk Cheese: Team Lancaster, Saputo Specialty pounds, down 600 million pounds from its forecast a month ago. of new tariff rate quotas Cheese, Milwaukee, made the 10 pounds of Wild Blueberry Vanilla The 2018 milk production projection has been lowered to 220.3 (TRQs) for imports of cheese Chèvre purchased by Rock River Laboratories for $80 per pound for billion pounds, down 900 million pounds from last month’s report. from the European Union a total of $800. For 2017, fat-basis exports are raised from the previous month (EU) under the Canada-EU Smoked Cheese: Saxon Creamery Team, Saxon Cheese, Cleveland, on higher butter and anhydrous milkfat shipments. Fat-basis Comprehensive Econom- made the 12 pounds of Big Ed’s Smokehouse Gouda purchased by imports are unchanged. The skim-solid basis export forecast for ic and Trade Agreement Saputo for $215 per pound for a total of $2,580. 2017 is lowered on weaker than expected whey sales. The import (CETA), which is set to Flavored Hard Cheese: Mike Matucheski, Sartori Co., Antigo, forecast is unchanged. take effect Sept. 21. The a Turn to AUCTION, page 12 Turn to USDA, page 11 a Turn to CANADA, page 11 a © 2017 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® — August 11, 2017 MARKET INDICATORS

Chicago Mercantile Exchange for the week ending August 10, 2017 Cash prices for the week ended August 11, 2017 CHEESE FUTURES (Listings for each day by month, settling price and open interest) Monday Tuesday Wednesday Thursday Friday Aug. 7 Aug. 8 Aug. 9 Aug. 10 Aug. 11 Fri., Aug. 4 Mon., Aug. 7 Tues., Aug. 8 Wed., Aug. 9 Thurs., Aug. 10 AUG17 1.644 3,590 1.637 3,614 1.635 3,605 1.657 3,602 1.650 3,589 Cheese Barrels SEP17 1.694 2,947 1.692 2,957 1.680 2,993 1.718 2,982 1.716 2,972 Price $1.5300 $1.5100 $1.5925 $1.5550 $1.5875 OCT17 1.720 2,399 1.712 2,435 1.707 2,446 1.744 2,461 1.740 2,462 Change NC -2 +8 1/4 -3 3/4 +3 1/4 NOV17 1.725 2,562 1.724 2,573 1.717 2,584 1.738 2,601 1.735 2,605 DEC17 1.713 2,407 1.719 2,421 1.707 2,435 1.721 2,440 1.720 2,450 Cheese 40-lb. Blocks JAN18 1.700 902 1.704 913 1.704 917 1.707 924 1.702 947 Price $1.6800 $1.6600 $1.6800 $1.7050 $1.7425 FEB18 1.701 799 1.703 803 1.703 804 1.708 819 1.705 830 MAR18 1.708 749 1.708 749 1.708 751 1.704 770 1.705 776 Change -1 3/4 -2 +2 +2 1/2 +3 3/4 APR18 1.705 678 1.706 683 1.708 689 1.703 697 1.700 698 MAY18 1.705 609 1.707 614 1.708 616 1.703 627 1.703 630 Weekly average (Aug. 7-11): Barrels: $1.5550(-.0180); 40-lb. Blocks: $1.6935(-.0485). JUN18 1.721 579 1.721 584 1.715 584 1.713 589 1.713 594 Weekly ave. one year ago (Aug. 8-12, 2016): Barrels: $1.8770; 40-lb. Blocks: $1.7960. JUL18 1.725 172 1.725 175 1.725 186 1.725 197 1.725 207 AUG18 1.729 126 1.729 130 1.727 131 1.727 139 1.727 139 Grade A NDM SEP18 1.735 89 1.735 93 1.730 106 1.734 110 1.734 110 $0.8500 $0.8500 $0.8500 $0.8500 OCT18 1.741 41 1.741 41 1.731 48 1.731 56 1.731 56 Price $0.8500 NOV18 1.742 40 1.742 40 1.732 49 1.732 57 1.732 57 Change -1 1/4 NC NC NC NC DEC18 1.740 36 1.740 36 1.730 49 1.730 57 1.730 57

Weekly average (Aug. 7-11): Grade A: $0.8500(-.0140). Total Contracts Traded/ Open Interest 385/18,725 294/18,861 394/18,993 352/19,128 306/19,179 Grade AA Butter Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. Price $2.6975 $2.6600 $2.6500 $2.6500 $2.6825 Change -3 1/4 -3 3/4 -1 NC +3 1/4 DRY WHEY FUTURES for the week ended August 10, 2017 Weekly average (Aug. 7-11): Grade AA: $2.6680(-.0420). (Listings for each day by month, settling price and open interest) Class II Cream (Major Northeast Cities): $3.3875(-.0374)–$3.7127(+.1034). Fri., Aug. 4 Mon., Aug. 7 Tues., Aug. 8 Wed., Aug. 9 Thurs., Aug. 10

Sign up for our daily fax or email service for just $104 a year. Call us at 608-288-9090. AUG17 43.200 666 43.275 669 43.000 677 42.750 681 42.500 686 SEP17 40.625 671 40.625 671 40.350 678 40.350 676 40.250 674 OCT17 40.350 489 40.350 489 39.325 489 39.350 495 39.350 495 NOV17 40.350 484 40.350 484 39.775 484 39.375 490 39.375 491 DEC17 40.000 472 40.000 472 39.825 474 39.825 478 39.825 478 JAN18 40.500 143 40.500 143 40.250 146 40.250 147 40.250 163 FEB18 40.000 166 40.300 166 40.300 166 40.300 166 40.300 167 MAR18 40.000 133 40.250 133 40.250 133 40.250 133 40.250 134 Weekly Cold Storage Holdings August 7, 2017 APR18 40.000 101 40.250 104 40.250 105 40.500 106 40.500 107 MAY18 40.000 86 40.250 87 40.250 95 40.500 95 40.500 96 On hand Week Change since August 1 Last Year JUN18 40.000 80 40.250 80 40.250 80 40.500 80 40.500 81 Monday Change Pounds Percent Pounds Change JUL18 40.025 15 40.500 15 40.500 15 41.000 21 41.000 21 Butter 35,245 -166 -133 -0 29,887 +5,358 AUG18 40.000 15 40.500 15 40.500 15 41.000 15 41.000 15 SEP18 40.025 15 40.500 15 40.500 41.000 15 41.000 15 Cheese +1,812 +1,450 +16,176 15 108,650 +1 92,474 OCT18 40.025 14 40.500 14 40.500 14 41.000 14 41.000 14 (These data, which include government stocks and are reported in thousands of pounds, are based on reports from NOV18 40.000 14 40.500 14 40.500 14 41.000 14 41.000 14 a limited sample of cold storage centers across the country. This chart is designed to help the dairy industry see the DEC18 40.025 14 40.500 14 40.500 14 41.000 14 41.000 14 trends in cold storage between the release of the National Agricultural Statistics Service’s monthly cold storage reports.) Total Contracts Traded/ Open Interest 35/3,578 7/3,585 66/3,614 48/3,640 36/3,665 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.

CLASS III PRICE Dry Products* August 11, 2017 (Dollars per hundredweight, 3.5% butterfat test) YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 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 NONFAT DRY MILK 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 Central & East: low/medium heat $.8500-$0.9500; 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 mostly $.8700(-1)-$.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 high heat $1.0000-$1.0900. 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 West: low/medium heat $.7950(-2)-$.9300(-3); 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 mostly $.8800(+1)-$.9100(-1). 2017 16.77 16.88 15.81 15.22 15.57 16.44 15.45 high heat $.9800-$1.0650. Calif. manufacturing plants: extra grade/grade A weighted ave. $.8948(-.0010) based on 4,023,348 lbs.

WHOLE MILK POWDER (National): $1.4000(+10)-$1.7000. 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: $.2400(-1)-$.4700(-2); mostly $.3100-$.4000. 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 Alyssa Mitchell, Central: nonhygroscopic $.3200-$.4900(-2); Managing Editor Services, P. O. Box 628254, Middleton, WI 53562; Form (PH 608/288-9090; FAX 608/288-9093) mostly $.3600-$.4500(-1). 3579 requested; or call direct at 608/831-6002. All rights West: nonhygroscopic $.3500(-1)-$.4625; email: [email protected] reserved under the United States International and Pan- Rena Archwamety, Senior Editor American Copyright Conventions. No part of this publication mostly $.3800(-1 1/2)-$.4400(-1/2). (PH 608/288-9090; FAX 608/288-9093) may be reproduced, stored in a retrieval system or transmitted (FOB) Northeast: extra grade/grade A $.3500(-1)-$.4700. email: [email protected] in any form or by any means, mechanical, photocopying, Stephanie Awe, Assistant Editor electronic recording or otherwise, without the prior written ANIMAL FEED WHEY (Central): Whey spray milk replacer $.2800-$.4100(-4 1/2). (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): $.7100-$1.1000(-8 1/2); REGULAR CONTRIBUTORS ® ® News . Cheese Market News does not endorse the products mostly $.7700(-3)-$.9425. 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, U.S. Dairy Export errors or omissions in the material contained herein, regard- DRY BUTTERMILK Council, WOW Logistics, Edward Zimmerman less of whether such errors result from negligence, accident (FOB)Central & East: $.8450-$.9225. ADVERTISING/SUBSCRIPTION ORDERS & INFO or any other cause whatsoever. Copyright 2017 by Quarne Publishing LLC. (FOB) West: $.8200-$.9600; mostly $.9100-$.9200. Contact: Susan Quarne - Publisher Subscriptions: $145 for U.S., second-class delivery; P.O. Box 628254, Middleton, WI 53562 IRU86ÀUVWFODVVGHOLYHU\LQFOXGLQJ&DQDGDDQG PHONE 608/831-6002 • FAX 608/288-9093 International rate to all others. Printed in U.S.A. CASEIN: Rennet $2.7000-$2.8000; Acid $3.4000-$3.6000. 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. © 2017 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]) August 11, 2017 — CHEESE MARKET NEWS® 3 NEWS/BUSINESS MARKET INDICATORS

Conventional dairy ads down 10 percent

WASHINGTON — The total number of average advertised price of $7.06, up conventional dairy advertisements last from $6.78 one week earlier and $6.67 week decreased 10 percent from the one year ago. prior week, and conventional cheese AMS says natural varieties of 8-ounce ads declined 16 percent, says USDA’s cheese shreds last week had a weighted Agricultural Marketing Service (AMS) average advertised price of $2.19, up from in its latest weekly National Dairy Retail $2.09 one week earlier but down from Report released Aug. 4. $2.29 one year earlier, while 1-pound AMS says national conventional va- cheese shreds had a weighted average rieties of 8-ounce natural cheese blocks advertised price of $3.73, down from last week had a weighted average adver- $4.02 one week earlier but up from $3.52 tised price of $2.27, up from $2.16 one one year earlier. week earlier and $2.14 one year earlier. Meanwhile, national conventional Natural varieties of 1-pound cheese butter ads last week increased 45 percent blocks last week had a weighted aver- from the prior week, AMS says. Con- age advertised price of $3.45, down ventional butter in 1-pound packs last For more information please visit www.devilletechnologies.com from $3.90 one week earlier and $4.13 week had a weighted average advertised one year earlier, AMS says, while price of $3.57, up from $3.49 one week 2-pound cheese blocks had a weighted earlier and $2.99 one year ago. CMN CME FUTURES for the week ended August 10, 2017 Fonterra forecasts higher 2018 milk price Class III Milk* Fri., Aug. 4 Mon., Aug. 7 Tues., Aug. 8 Wed., Aug. 9 Thurs., Aug. 10 AUCKLAND, New Zealand — Fon- “We are seeing growing confi dence AUG17 16.33 5,198 16.25 5,244 16.23 5,210 16.43 5,174 16.39 5,134 terra Cooperative Group Ltd. recent- on-farm across the country and, with SEP17 16.69 5,373 16.63 5,368 16.50 5,468 16.94 5,452 16.86 5,434 OCT17 16.92 3,713 16.87 3,711 16.75 3,726 17.15 3,692 17.05 3,706 ly announced an increased forecast global demand for dairy strengthening, NOV17 16.98 3,301 16.95 3,318 16.84 3,343 17.08 3,385 16.98 3,384 farmgate milk price for the upcoming the signs are for a good start to the season DEC17 16.78 2,785 16.82 2,782 16.72 2,772 16.90 2,774 16.80 2,773 2018 season to NZ$6.75 per kilogram for our farmers and their rural commu- JAN18 16.60 990 16.63 993 16.59 1,003 16.62 1,015 16.58 1,032 FEB18 16.60 918 16.61 936 16.66 921 16.66 921 16.60 926 milksolids (kgMS). The cooperative nities although following a challenging MAR18 16.58 855 16.63 869 16.63 867 16.63 868 16.59 874 also announced a forecast earnings period of very wet conditions for some APR18 16.58 674 16.58 674 16.62 663 16.58 669 16.55 676 per share range of 45 to 55 cents, of our farmers,” Wilson says. MAY18 16.58 630 16.59 630 16.63 628 16.59 627 16.59 632 JUN18 16.73 552 16.73 552 16.74 552 16.74 552 16.74 554 making the forecast total available Fonterra CEO Theo Spierings says JUL18 16.80 241 16.80 241 16.80 244 16.80 245 16.80 252 payout to farmers in the 2017/2018 the cooperative is well-positioned to AUG18 16.80 192 16.80 194 16.85 200 16.85 200 16.85 200 SEP18 16.83 170 16.83 171 16.85 179 16.85 183 16.85 183 season NZ$7.20 to NZ$7.30 before re- take advantage of improving demand OCT18 16.90 99 16.90 100 16.84 107 16.85 112 16.87 114 tentions. for dairy nutrition across its ingredients, Total Contracts Traded/ Fonterra chairman John Wilson consumer and foodservice markets. Open Interest 1,306/25,884 1,136/25,976 1,372/26,089 1,351/26,084 762/26,091 says the revised forecast farmgate milk “Increasing numbers of consumers Class IV Milk* price is an increase of 25 cents on the in our global markets prefer dairy for original forecast of NZ$6.50 per kgMS their everyday source of nutrition, and Fri., Aug. 4 Mon., Aug. 7 Tues., Aug. 8 Wed., Aug. 9 Thurs., Aug. 10 in May 2017 and refl ects the ongoing that is converting into strong demand, AUG17 16.90 464 16.75 463 16.74 463 16.76 463 16.67 463 SEP17 17.15 466 16.96 482 16.84 482 16.84 482 16.80 482 rebalancing of supply and demand in particularly in consumer and foodservice OCT17 17.34 480 17.15 480 16.99 480 16.99 480 16.94 480 global dairy markets. products,” Spierings says. CMN NOV17 17.39 379 17.25 380 17.09 380 17.09 380 17.04 380 DEC17 16.76 404 16.68 409 16.54 409 16.54 409 16.40 409 JAN18 16.06 148 16.06 148 15.91 147 15.91 147 15.83 146 FEB18 16.00 149 16.00 149 16.00 149 16.00 149 15.81 155 MAR18 16.22 184 16.11 183 16.08 179 16.08 179 15.93 183 RETAIL PRICES (Consumer Price Index*) Percent change versus APR18 16.34 98 16.32 98 16.32 98 16.32 98 16.25 108 July 2017 1 mo. 6 mo. 1 year 2 years MAY18 16.40 88 16.40 88 16.35 88 16.35 88 16.35 98 JUN18 16.49 95 16.49 95 16.49 95 16.49 93 16.44 103 Cheese & related products 227.817 +0.6 -0.1 +0.5 -2.7 Total Contracts Traded/ Dairy & related products 216.434 +0.6 -1.5 +0.9 -2.3 Open Interest 15/2,999 46/3,019 34/3,014 7/3,012 74/3,051 All Food 250.214 +0.2 +0.8 +1.1 +1.3 *Source: U.S. Department of Commerce. For index, prices during 1982-84 = 100. Cash-Settled NDM* Fri., Aug. 4 Mon., Aug. 7 Tues., Aug. 8 Wed., Aug. 9 Thurs., Aug. 10

AUG17 87.825 993 87.825 983 87.350 987 87.550 976 86.775 973 SEP17 89.750 1,028 88.775 1,026 88.400 1,022 88.150 1,013 87.775 1,010 National Dairy Products Sales Report OCT17 91.400 652 90.400 649 89.525 660 89.500 667 89.000 666 NOV17 92.000 701 92.050 701 91.600 703 91.000 719 89.700 733 For the week ended: 8/5/17 7/29/17 7/22/17 7/15/17 DEC17 93.400 771 93.150 769 93.000 782 92.425 806 90.800 836 JAN18 95.000 475 94.800 477 94.425 484 93.550 493 92.000 515 Cheese 40-lb. Blocks: FEB18 96.350 286 96.050 288 95.750 315 95.025 330 93.925 354 Average price1 $1.6813 *$1.6226 $1.5907 $1.5866 MAR18 97.225 244 97.000 244 97.000 248 96.275 248 94.275 293 APR18 98.000 134 98.000 136 Sales volume2 11,698,761 *11,933,852 11,217,751 14,121,953 98.000 129 97.750 139 95.875 159 Cheese 500-lb. Barrels: Total Contracts Traded/ Open Interest Average price1 $1.5902 $1.5636 $1.5238 $1.4880 139/5,470 109/5,462 297/5,529 250/5,603 429/5,782 Adj. price to 38% moisture $1.5124 $1.4863 $1.4489 $1.4164 Cash-Settled Butter* Sales volume2 11,361,822 *10,948,267 9,233,624 13,441,457 Moisture content 34.81 34.77 34.80 34.87 Fri., Aug. 4 Mon., Aug. 7 Tues., Aug. 8 Wed., Aug. 9 Thurs., Aug. 10 Butter: AUG17 271.000 1,110 267.350 1,114 267.000 1,110 267.975 1,111 267.000 1,111 Average price1 $2.6456 *$2.6475 *$2.5866 $2.6086 SEP17 274.000 1,390 270.250 1,383 267.000 1,385 267.000 1,427 267.000 1,439 OCT17 930 268.150 943 976 Sales volume2 3,949,627 *2,164,100 *4,279,573 3,261,300 275.050 934 270.050 266.750 937 268.925 NOV17 274.500 790 270.000 792 266.750 796 268.250 828 269.500 862 Nonfat Dry Milk: DEC17 255.500 483 252.525 498 250.100 518 251.500 518 252.225 519 Average price1 $0.8620 *$0.8854 *$0.8916 *$0.9026 JAN18 236.650 116 236.325 121 235.000 124 235.000 124 235.275 124 Sales volume2 26,171,145 *18,702,371 *21,620,317 *15,521,374 FEB18 234.900 54 234.900 55 233.900 60 234.750 60 234.775 60 Dry Whey: MAR18 234.250 36 234.250 36 233.150 41 234.500 41 234.500 41 APR18 25 232.125 25 232.100 28 232.500 28 232.500 28 1 $0.4344 *$0.4489 *$0.4393 *$0.4477 232.000 Average price MAY18 232.250 23 232.300 25 232.250 30 232.250 30 232.250 30 Sales volume2 6,190,970 *6,475,846 *8,287,589 *7,772,251 Total Contracts Traded/ Open Interest 211/5,009 */Revised. 1/Prices weighted by volumes reported. 2/Sales as reported by participating manufacturers. 37/4,991 156/5,064 135/5,146 132/5,226 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. Reported in pounds. More information is available by calling AMS at 202-720-4392. *Total Contracts Traded/Open Interest reflect additional months not included in this chart.

DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions. © 2017 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® — August 11, 2017 GUEST COLUMNIST CMN Exclusive!

uct at the right time to meet massive despite higher-priced alternative av- international foodservice orders. The enues. Yes, the milk originated in the Perspective: industry responded by adding cows Midwest where you fi nd a great deal of Dairy Markets and adding barrel processing capacity. cheese manufacturing capacity, so it’s Fast forward to early 2017, prices understandable that cheese was made. Joe Schmit is a broker at Rice have normalized, exports subsided, and Perhaps the proximity to cheese pro- Dairy,* Chicago. He contributes cheese inventories started to build. Most cessing outweighed the gains returned this column exclusively for Cheese dairy components appeared to be well by shipping fl uid milk across the country Market News®. supplied with the exception of whey. to run through higher valued Class IV Simultaneously, milk production rose channels. The choice to make barrel above processor demand. The bulk of cheese, however, remains a bit confus- the milk burden originated in the Up- ing. On May 26, the block /barrel spread per Midwest where a mild spring lead stood at $0.25 per pound with whey to very comfortable and highly produc- prices at their peak. The processor paid tive cows. Extra truckloads of fl uid milk the dairy farmer Class III and then sold began to change hands at a discount to barrels at a $0.125 per pound discount. Class. Fluid surpluses needed to fi nd a The math only works if you assume the processing channel and manufacturers processor is making a premium plus on chose the processed cheese channel. specialty whey products. The return on Has whey become the new pork belly? Excess barrel cheese started to come to investment for the processor existed in the Chicago Mercantile Exchange spot the whey stream while barrel cheese Prior to focusing on dairy markets, despite already burdensome cheese market, pushing prices lower. Class III became a pass-through. I spent a few years as a hog market inventories. was slightly discount to Class IV at the One could argue that the chee- analyst. Hog slaughters are driven by Milk production has been robust time, which is a stark contrast to histori- semaker has the massive cost of the profi tability and slaughters increase this year, running 1.5 percent-2 percent cal premiums of $0.60-$1.00 per pound. plant and the only way to monetize as the prices of the cuts increase. The above the previous year’s production. It was interesting that manufacturers that investment in bricks, mortar and hog cuts are priced independently based Additionally, butterfat production has chose the processing channel with a stainless steel is to keep the plant full. on demand. Hams could be up while been up 2.3 percent-3.4 percent which lower utilization based on the price of Simply put, an idle plant has a massive shoulders are down. As long as the leads to higher cheese and whey yields. barrel cheese and dry whey. It seems opportunity cost. While this is true, average price is up, the butchering will This is the result of dairy profi tability that the premium price of various high the latest Dairy Products report tells a increase. However, there is one cut that in 2016 when high cheese prices fueled end whey products infl uenced their different story. As whey prices moved can drive slaughters entirely on its own. herd expansion. The U.S. dairy farmer decision. The premiums associated sharply lower during June, American If the pork belly price is high enough, was the outlier last year as producers with WPC-80 and whey protein isolate cheese production slowed considerably. farmers will be in the black even with were profi table while the other major seemed to steer fl uid milk into pro- After dry whey prices moved from the lower priced pork chops and loins. Just dairy exporting regions suffered from cessed cheese channels. high $0.40s per pound to the mid $0.30s, as an infl ated pork belly price leads to low prices. Extraordinary demand for Abundant barrels pushed the block/ cheese production in June dropped to increased hog slaughters, I began to processed cheese proved to be the barrel spread to a historically wide 10 million pounds below the 5-year av- wonder if it was possible that premium driver, and the United States was the differential and sent the Class III erage while nonfat dry milk production whey prices could be enough to pull only store in town. The American dairy price below Class IV. Milk, however, Turn to SCHMIT, page 11 a milk into processed cheese channels processor was making the right prod- continued to fl ow into the cheese vat NEWS/BUSINESS

FSMA training for artisan dairy expanded Henningsen opens new facility in Oregon MADISON, Wis. — The Wisconsin Controls Alliance publication, Pre- SALEM, Ore. — Henningsen Cold Incorporated in the fi rst phase of Cheese Makers Association (WCMA), ventive Controls for Human Foods as Storage Co., a 94-year-old, Oregon an eventual four-phase development in partnership with the Center for well as a binder of standard operating family-owned refrigerated warehousing is more than 20,000 square feet of Dairy Research (CDR), has announced procedure templates, forms and sample company, recently opened its second processor-dedicated space with direct an expansion of the Artisan Dairy Pro- FSMA-compliant plans. Food Safety facility in Salem, Oregon, according to access to Henningsen’s cold storage ducer Safety Initiative, which provides educators Jim Mueller and Larry Bell, the company. warehouse, eliminating the need to training and consultative services on with the assistance of initiative co- The 176,000-square-foot facility is shuttle products in and out by truck, new industry regulations contained director Marianne Smukowski of CDR located in the Mill Creek Corporate the company says. within the Food Safety Modernization and Matt Mathison of the Wisconsin Center, and it offers 6 million cubic feet With the addition of its new Salem Act (FSMA). Milk Marketing Board, then walk qual- of cold storage capacity. facility, Henningsen offers more than 60 Launched this year with grant mon- ity assurance managers or other dairy The 26,000-pallet facility will strive million total cubic feet of temperature- ies from USDA’s National Institute of products processing staff through the to serve as an innovative hub of activity controlled space in 11 locations across Food and Agriculture, this free program creation of their own plant plan. Most for food processors, providing infra- the United States, according to the already has served 72 companies in participating companies will receive structure to an industry that accounts company. the dairy products manufacturing and two on-site consultations at no charge, for about 50 percent of the region’s For more information, visit www. processing industry, and it will have the according to WCMA. manufacturing base, the company says. henningsen.com. CMN capacity to serve another 15 in 2017-18, “This program exists to help make according to WCMA. FSMA compliance a less daunting task Nonorganic whey allowed in organic food “Mid-sized manufacturers and pro- for dairy products processors — chee- cessors face a FSMA compliance dead- semakers, buttermakers, yogurt and WASHINGTON — USDA’s Agricul- that will continue to be allowed are non- line next month, and smaller companies ice cream makers,” Smukowski says. tural Marketing Service (AMS) has organic forms of inulin-oligofructose will be expected to meet guidelines in “Adjusting food safety plans to meet released its 2017 sunset fi nal rule enriched and Turkish bay leaves. September 2018,” says John Umhoefer, the federal guidelines is easier when amending the National List of Allowed The fi nal rule also has added eight WCMA’s executive director and initia- you know you have someone to call on and Prohibited Substances within US- substances to those prohibited in tive co-director. “Our program stands to to answer questions.” DA’s organic regulations. organic production: Lignin sulfonate help facility managers navigate regula- For more information or to enroll, Whey protein concentrate is among (for use as a fl oating agent), furose- tory language and develop plans that contact Rebekah Sweeney, communi- three substances on the National List mide, magnesium carbonate, and the meet the new federal expectations.” cations and policy manager, WCMA, that will continued to be allowed in nonorganic forms of chia, dillweed oil, Participating companies receive at [email protected] nonorganic forms to be used in organic frozen galangal, frozen lemongrass a copy of the Food Safety Preventive or by calling 608-828-4550. CMN production and handling. The other two and chipotle chile peppers. CMN © 2017 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]) August 11, 2017 — CHEESE MARKET NEWS® 5 CHEESE MARKET NEWS® Retail WATC H NEWS & MARKETING IDEAS TO HELP SELL MORE CHEESE Salemville Cheese Cooperative expansion doubles its footprint Blue, Gorgonzola products now in updated packaging

By Kate Sander community determined that if they were going to preserve the ability to handmilk CAMBRIA, Wis. — Salemville Cheese their cows and sell their milk in milk Cooperative recently completed a con- cans, they needed to buy their own plant. struction project that added 15,000 square A small shuttered dairy plant in Cambria feet to its award-winning Blue cheese presented the right opportunity at the creamery. More than doubling its size, the right time. expansion gave the co-op the opportunity Upon purchasing the plant, two mem- to retool and improve its entire produc- bers of the Amish community, LaVern tion facility. Miller and William Schrock, became the Nelson Schrock, operations manager, head cheesemakers. Prior to moving to Salemville Cheese Cooperative, says the Wisconsin they had no prior experience new production facility has been op- with Blue cheese. But while they learned erational since the beginning of April. In the craft and excelled at making cheese, addition to increased capacity, the new selling the product in those early years facility — now a total of 28,000 square proved difficult, according to Nelson feet — has improved processes and has Schrock, who describes the late 1980s as Photo courtesy of Salemville Cheese added an enclosed milk receiving bay. “rocky” years with the co-op’s employees SALEMVILLE’S BLUES: Salemville Cheese Cooperative makes four Blue and Gorgonzola While the fi rst few weeks of production — who weren’t experts in dairy market- products. in the new facility were trial and error, ing — making phone calls to market and Schrock says he is now thrilled with the sell their cheese. store. Each addition was a little larger The company also offers a smoked quality of cheese coming off the new line. than the last as demand grew. Blue, Salemville Smokehaus Blue, which “It’s met and exceeded our expecta- In 2011, DCI was purchased by Saputo is applewood smoked to give the cheese tions,” Schrock says. In its recently Cheese USA Inc. a sweet, slightly smoky fl avor. For a creamery that’s SQF Level 2 enlarged but still Today, the Salemville brand continues Coinciding with the plant expan- certifi ed and regularly wins awards for its to benefi t from Saputo’s strong national sion, Saputo recently has invested in Blue and Gorgonzola, that’s saying a lot. unassuming plant, sales and marketing teams. With the new packaging for the entire product The co-op’s most recent win was a best of Salemville Cheese strength of a multinational company line. Saputo recently launched new class award for its Salemville Gorgonzola behind the marketing of the product, re-sealable packaging for Salemville at the U.S. Championship Cheese Contest Cooperative makes just the Amish cheese cooperative can focus brand’s four award-winning blue-veined this past spring, but the co-op’s cheeses four Blue and Gorgonzola on what it does best — making quality cheeses. These new containers offer have won dozens of awards over its storied cheese. easy access for quick and convenient history, including best in the Gorgonzola products that are In its recently enlarged but still dining. And once you are done, just class at the 2012 World Championship unique to one another unassuming plant, Salemville Cheese snap the lid back into place and return Cheese Contest. Cooperative makes just four Blue and the cheese to the refrigerator for your In addition to the many awards over and all critically Gorgonzola products that are unique to next meal. the years that attest to the cheese’s qual- acclaimed. one another and all critically acclaimed. While the Salemville plant doesn’t ity, Salemville Cheese Cooperative offers Salemville Blue cheese is recognized have internet access and keeps its consumers a compelling story that has for its well-balanced, earthy fl avor and processes simple, Saputo continues to helped lead to increased demand. The co-op’s trajectory changed, picturesque veining. A rich and smooth use its marketing reach to spread the Salemville Cheese Cooperative isn’t though, in 1990 when the co-op formed rbGH-free cheese, Salemville Blue is deli- word about the product line across all an average dairy cooperative. Its 64 a marketing relationship with dairy cate with a slightly tangy fl avor, Saputo marketing channels. members are Amish families who live in marketer Dan Carter. Dan Carter Inc. marketing materials say. A new website for the brand will a settlement in south central Wisconsin acquired the Salemville brand, while Meanwhile, Salemville Gorgonzola is launch this summer, and recipe videos that was founded in the late 1970s. They the plant and its assets remained with savory and slightly piquant with a rich, are being featured on social media. An are Old Order Amish with a traditional Salemville Cheese Cooperative. earthy fl avor. Its creamy texture and infl uencer marketing campaign will be lifestyle — horses plowing the fi elds, Carter had the cheese packaged in consistent veining make it the perfect tied to a holiday sweepstakes promo- handmilked cows and few telephones. small retail sizes and focused on the addition to a fruit-based cheese plate, tion. Salemville products are marketed Rather than milk being pumped away to a retail segment, which provided better Saputo says. through in-store promotions, social conventional cooling tank, milk is poured returns. With the marketing prowess Salemville Reserve, an extra-aged media, infl uencer marketing, and print into traditional cans, which are chilled in of Dan Carter Inc., later known as DCI Blue cheese, undergoes a closely moni- and digital ads. 50-degree well water baths until picked up Cheese Co., sales of Salemville products tored extended aging process to further Schrock believes the handmade, low by milk can trucks and delivered to a plant. began to fl ourish. develop the cheese’s well-balanced fl avor. impact nature of the cheese’s produc- By the mid-1980s, surrounded by a Over the years, the cooperative began The result is a rich and creamy texture tion will continue to benefi t sales and world with increasingly stringent food to make a few additions — adding more and a piquant fl avor that is both earthy marketing. safety demands, the members of the cold storage space and a small retail and savory, Saputo says. Turn to SALEMVILLE, page 7 a

Also in Retail WATCH: Philadelphia brand launches new products … Page 7 Borden launches new packaging … Page 8

© 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 6 CHEESE MARKET NEWS® — August 11, 2017 RETAIL ROUND-UP

Local dairy promotion

Our Expertise in World Dairy Markets Makes MCT Your Global Partner for Successful Results

SOURCING AND LOGISTIC SERVICES

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SPECIALIZED FORMULATIONS We have expanded our team to bring you unprecedented expertise Photo courtesy of Bojoy Enterprises and knowledge in today’s complex world markets. MADISON, Wis. — Alice in Dairyland Crystal Siemers-Peterman (third from left) paid a visit to Festival Foods June 24 at its Madison, Wisconsin, location on East Washington • Sourcing and Logistic Services Avenue. The event, which also featured a cheese sampling and sales display, was a LEADING SINGLE SOURCE • Specialized Formulations DAIRY SUPPLIER culmination of efforts between Festival Foods and local cheese brokers Dale Boness • Leading Single Source Dairy Supplier (second from left), president and CEO, Bojoy Enterprises, Mount Horeb, Wisconsin, and • Aging Programs Bob Faliveno (left), executive vice president, Bojoy Enterprises. On display at the front • Hedging Services of the store was a 150-pound mammoth Cheddar created by Henning Cheese Inc., Kiel, • Unparalleled Services Wisconsin, and it was cut for shoppers to sample and purchase. This year marks the UNPARALLELED SERVICES • Expertise in the Global Dairy Market 70th anniversary of the Alice in Dairyland program under the direction of the Wisconsin • Export Services Department of Agriculture, and Siemers-Peterman, in addition to meeting and greeting with customers, received a tour of the store. The event helped kick off a community event sponsored by Festival Foods and promoted Wisconsin’s dairy industry, according to or- ganizers. Also pictured is Norm Hefty, account representative, Bojoy Enterprises. CMN EXPERTISE IN THE GLOBAL MCT Dairies is the leading DAIRY MARKET supplier of cheese and GDLU\LQJUHGLHQWVRɣHULQJ innovative solutions Ohio-based Hartzler Family Dairy introduces throughout the world. Non-GMO Project Verifi ed String Cheese WOOSTER, Ohio — Hartzler Fam- “We are proud to announce that we ily Dairy, based in Wooster, Ohio, has have produced America’s fi rst Non-GMO introduced the nation’s fi rst Non-GMO Project Verifi ed String Cheese,” says Paul Project Verifi ed String Cheese, according Sommers, president and general manager, to Hartzler Family Dairy. The product Hartzler Family Dairy. “We partnered with recently was released to its local market. a local co-packer to produce our product, Phone: 973.258.9600 or 877.258.9600 Email: [email protected] The dairy also plans to introduce the using milk from our small family farms. We Web: www.mctdairies.com product to the national market later this know consumers are increasingly looking year at Expo East 2017, Sept. 14-16, in for healthy food choices for the well-being Baltimore, Maryland. of their family. Thus, we decided to make For more information please visit www.mctdairies.com our own healthy Non-GMO Project Veri- fi ed String Cheese, which, as with all our products, is ‘as nature intended.’ “We are offering a truly local snack option that consumers can feel good about feeding their family and supporting a small, local dairy,” Sommers says. “We are confi dent that our new offering will make a great addition to our current product line and have broad market appeal in markets that we currently do not serve.” For more information, visit www. hartzlerfamilydairy.com. CMN Horizon Organic unveils snack line

BROOMFIELD, Colo. — Horizon Or- ganic recently launched a new line of snacking products. Good & Go! Snacks are easy to peel open and contain 5 or more grams of protein per pack. The snacks are available in three varieties: Cheddar & Pretzels, Colby & Apple Crisps, and Cheddar, Raisins, Cashews & Sweetened Cranberries. For more information, visit For more information please visit www.winonafoods.com www.horizon.com. CMN © 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) RETAILING PERSPECTIVES August 11, 2017 — CHEESE MARKET NEWS® 7 General Mills introduces line-up of products, including yogurt, cheese puffs and more

MINNEAPOLIS — General Mills is available in Coconut Chocolate Almond, releasing a line-up of new products Key Lime Crunch, Salted Caramel Pret- around the world. zel, Very Berry Crisp, Cherry Chocolate “Regardless of the changing con- Almond and Mint Chocolate Delight. sumer landscape, one thing remains Meanwhile, Annie’s Organic Cheese consistent, people still want great- Puffs are organic baked puffs available tasting products,” says Jeff Harmening, in Cheddar Cheesy and White Cheddar CEO, General Mills. “We’re increasing Bunny Tail, the company says. our levels of innovation across the board, General Mills also is launching with a laser focus on delivering excep- products in other areas of the world. tional taste with simple ingredients.” In Canada, the company offers Liberte Some products launching this sum- Greek Crunch, consisting of two-percent mer include “Oui” by Yoplait, Yoplait milkfat Greek yogurt with crunch inclu- Mix-Ins, Annie’s Organic Cheese Puffs sions. In France and Spain, General and more, according to General Mills. Mills offers Haagen-Dazs Frozen Yogurt Photo courtesy of Salemville Cheese “Oui” by Yoplait is a French-style Collection and, in Europe, Australia and yogurt inspired by Yoplait’s Saveur Asia, Haagen-Dazs Mini-Stick bars. In TRADITIONAL FARMING PRACTICES: Salemville Cheese Cooperative’s members are d’Autrefois (“taste of yesteryear”) sold France, the company has Yoplait Triple Amish families who handmilk their cows. Then, rather than the milk being pumped away in France. (See “Yoplait brings French- Sensation and Champs de Fruit, a yogurt to a conventional cooling tank, the milk is poured into traditional cans, which are chilled in style yogurt to U.S.” in the July 14, 2017, dessert. In China, the company also 50-degree well water baths until picked up by milk can trucks and delivered to the plant. issue of Cheese Market News.) offers Yoplait Perle de Lait Drinkable. major food safety certifi cations: It is Yoplait Mix-Ins offer creamy, tradi- For more information, visit www. SALEMVILLE GFSI certifi ed and is working on taking tional-style yogurt with textured crunch, generalmills.com. CMN Continued from page 5 its SQF Level 2 certifi cation to Level 3, the highest level. Philadelphia offers new Cheesecake Each of the Amish families cares “We understand that this is not a deeply for its herds, which range from venture where we’re the biggest Blue Cups, Bagel Chips & Cream Cheese Dips four to 25 head, with an average size of cheese vendor,” Schrock says. “How 15, Schrock says. At the plant, as much we feed our cows, how we handle our CHICAGO — Philadelphia Cream Philadelphia Bagel Chips & Cream as possible is done by hand instead of milk, how we handle and package our Cheese recently released two new Cheese Dips are sold in portable snack using machines. cheese — that’s what makes our product products: Cheesecake Cups and Bagel cups and made with real fruits and At the same time, the company offers different.” CMN Chips & Cream Cheese Dips. vegetables and no artifi cial fl avors. Philadelphia Cheesecake Cups They are available in four sweet and are a sweet treat in a pre-portioned savory fl avors, including Strawberry cup without artifi cial fl avors or dyes. Cream Cheese Dip & Multigrain Ba- Found in the ready-to-eat desserts gel Chips, Garden Vegetable Cream aisle, Philadelphia Cheesecake Cups Cheese Dip & Multigrain Bagel Chips, are available in four fl avors includ- Chive and Onion Cream Cheese Dip EVERY CHEESE ing Cheesecake with Strawberries, & Multigrain Bagel Chips, and Brown Cheesecake with Milk Chocolate Sugar & Cinnamon Cream Cheese Dip Sauce, Cheesecake with Cherries & Multigrain Bagel Chips. HAS A STORY and Cheesecake with Salted Caramel Philadelphia Bagel Chips & Cream Sauce. Cheese Dips are available at a sug- They are available at retailers na- gested retail price of $1.99 for a tionwide at a suggested retail price of 2.5-ounce cup serving. $2.99 for a 2-pack of 3.25-ounce cups. For more information, visit www. Combining crunchy and creamy, creamcheese.com. CMN Brown Cow Whole Milk Yogurt announces brand is now Non-GMO Project Verifi ed Salemville® is available exclusively through Saputo LONDONDERRY, N.H. — Brown Cow In paying a premium for the produc- Specialty Cheese Whole Milk Yogurt has announced that it tion of non-GMO milk, the Brown Cow is now Non-GMO Project Verifi ed, sourcing brand also works to help grow and sustain milk from family-owned farms located in a network of family farms. Vermont. “The higher premium we pay provides As a Non-GMO Project Verifi ed brand, family farms the opportunity to remain the ingredients in each cup are made competitive,” says Rolf Carlson, vice However, no one else has a story quite like ours. without the use of genetically-modifi ed president of sourcing and sustainabil- Our award-winning cheeses are crafted by artisans, ensuring the highest organisms, the company says. ity. “These farms are having a positive quality that not only meets your expectations, but appeals to the changing “Brown Cow Yogurt was originally made impact in their communities and are tastes of your customers. in Ithaca, New York, by two farmers who positioning themselves to continue in had an idea to make delicious yogurt,” the dairy industry here in New England Embrace your inner artisan. says Lizzie Conover, brand manager. “Af- for the long term.” SAPUTOSPECIALTY.COM | 1-800-824-3373 ter moving to the West Coast more than The cream top yogurt comes in 40 years ago, it’s great to have the brand 5.3-ounce cups of Plain, Maple, Vanilla, travel back to its roots in the Northeast — Blueberry, Strawberry, Peach, Coffee, proudly made with milk from family farms Raspberry, Apricot Mango, Cherry Va- who give their cows only non-GMO feed.” nilla, Chocolate and Lemon, as well as In addition to being Non-GMO Project in 32-ounce cups of Plain, Maple and Verifi ed, Brown Cow does not use artifi cial Vanilla. Brown Cow yogurt is available © 2017 Saputo Cheese USA Inc. All rights reserved. Stella®, Black Creek® and Lorraine® are registered trademarks growth hormones, artifi cial fl avors or nationally. owned by Saputo Cheese USA Inc. Woolwich Dairy®, Salemville®, Nikos®, Joan of Arc®, Organic Creamery®, ® ® artifi cial sweeteners, according to the For more information, visit www. King’s Choice and Great Midwest are registered trademarks used by Saputo Cheese USA Inc. company. browncowfarm.com. CMN For more information please visit www.saputospecialty.com

© 2017 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® — August 11, 2017 THE CHEESE TABLE NPD Group: Most U.S. consumers aren’t shopping online for groceries, but growth predicted CHICAGO — Grocery e-commerce has a Consumers who have lapsed from gro- being that they want to pick out their own as consumers already have experienced the lot of room for growth, with only 7 percent cery shopping online or who have never fresh items, NPD Group says. convenience of online shopping. In fact, 20 of U.S. consumers shopping online for shopped for online groceries point out a In addition to selecting their own fresh million consumers who are current, lapsed groceries in the past month, reports The number of barriers to their adoption of foods, many consumers simply like the or new to online grocery shopping plan to NPD Group, a global information company. online grocery shopping, the top reason experience of grocery shopping in a brick- increase their virtual shopping for foods and-mortar store, saying that walking the and beverages over the next six months, store reminds them of what else they need or according to the NPD study, “The Virtual they like to see what’s new, NPD Group says. Grocery Store.” Other barriers are higher costs associ- “Brick-and-mortar stores aren’t dead, ated with grocery shopping online, like they will just need to step up their delivery or membership fees, and needing game,” says Darren Seifer, NPD food to wait for the delivery. and beverage industry analyst. “There Quality NPD Group notes Amazon’s recently- will continue to be a large percentage of announced purchase of Whole Foods will the population who will prefer to shop You Can Trust. help overcome this barrier for Amazon at brick-and-mortar grocers. Brick-and- Innovation Prime members (52 percent of online gro- mortar food retailers should market the cery shoppers are Amazon Prime members), unique consumer needs they meet that You Can Taste. active online shoppers — such as young online grocers aren’t currently offering, Celebrating Successful adults and men — and urban consumers. experience being a key one. At the same There remains, however, a large sector time, they need to keep up with the times Partnerships for 60 Years! of the population that will continue to be and leverage digital ordering via their Introducing our served by brick and mortar grocery stores. own click-and-collect programs as well as Newly Expanded Still, NPD predicts that online grocery partnering with third parties for delivery Glacier Ridge FarmsTM Line: shopping will begin to grow at a faster rate in order to expand their offerings.” CMN • Handcrafted In America’s Dairyland • Naturally Smoked Cheeses • Gourmet Spreadable Cheeses & Dips Icelandic Provisions adds Key Lime skyr • Smokey Bars/Snack Wedges • Variety of Flavors NEW YORK — Icelandic Provisions, a of protein and 1.5 percent milkfat and is FOODSERVICE company based in Iceland that produces low in sugar, the company says. In Perfect Shape For a Growing Industry traditional skyr made from milk from family “Adding Key Lime as our eighth fl avor is ■ Creative blend of vision and flexibility farms, has added a Key Lime fl avor variety a strategic move to bring a sunnier offering ■ Unique product offerings ■ Naturally smoked cheeses tailored to fit every to its product line up. to our product range,” says Steve Platt, CEO, SQF Level 3 Certified packaging configuration This certification ensures our Skyr is a cultured dairy product and Icelandic Provisions. “As we’re seeing more customers that our cheese products ■ Extensive single serving/portion-controlled sizes have been produced and handled in dietary staple of Icelanders, the company and more Americans choosing Icelandic accordance with the highest standards PRIVATE LABEL says. skyr over other yogurts, we want to give set by the Food Marketing Institute (FMI). Build Your Brand With Quality You Can Trust ■ Expansive array of custom formulations The brand now offers eight fl avors of them a wider range of fl avors to explore.” ■ Innovative packaging solutions skyr — Plain, Vanilla, Coconut, Raspberry Icelandic Provisions skyr is available ■ Ability to drive new sales and Key Lime as well as Nordic-derived across the United States in more than RETAIL HOUSE BRANDS varieties Strawberry with Lingonberry, 3,000 stores. Each 5.3-ounce cup retails Diversify Your Product Portfolio With Our Proven Winners Blueberry with Bilberry and Peach with from $1.69-$1.99. ■ Unique flavor profiles Cloudberry. For more information, visit www. ■ Market versatility to maximize sales performance ■ Price competitiveness & in-store support The new Key Lime fl avor has 15 grams icelandicprovisions.com. CMN ■ Low minimum order quantities Call us today for details: 2819 County Road F • Blue Mounds, WI 53517 Borden Cheese launches new packaging Ph: (608) 437-5598 • Fax: (608) 437-8850 [email protected] • www.dairyfoodusa.com KANSAS CITY, Kansas — Dairy Farm- products. The entire Borden Cheese prod- ers of America (DFA) recently introduced uct portfolio features the new design, en- For more information please visit www.dairyfoodusa.com new packaging for its Borden Cheese compassing more than 120 SKUs across eight different lines of cheese, including shreds, chunks and slices. “The most notable change in the re- design is the communication of our farm heritage and ownership. Throughout our • Expert knowledge in all aspects and applications research, we found that consumers were not of marketing cheese immediately making the farm heritage con- • We represent quality manufacturers from all over the nection from the front panel call-out button U.S. and World stating ‘100-percent Farmer Owned,’” says • Expertise in imported and specialty cheeses Kim O’Brien, spokesperson, DFA. “Instead, • Broad knowledge of club stores and general we elected to visually communicate our merchandising programs farm ownership via a farm landscape in the background of the package and use Call one of the experts on the call-out button to communicate im- our team today... portant product attributes: ‘Real Cheese, Real Good.’” „ Patrick Spaulding „ Michael Bauchman In addition to the new imagery on the „ Mike Feeney „ Rodney Butcher „ Nathan Gorang „ Jim Andresen front panel, the new packaging also features „ Brian Argersinger „ Bryan Kuhn more information on the back panel to „ Suzanne Spaulding „ Tyler VanWerden further share the cheese’s story and rich „ Jay Spaulding heritage, O’Brien says.  “On every package, we feature one of the more than 8,000 family-owned dairy farms THE CHEESE GUYS who proudly stand behind Borden Cheese,” (810) 229-4166 • FAX (810) 227-4218 • Email: [email protected] she says. “Our hope is that consumers will Web: www.cheeseguys.com not only enjoy the taste and quality of our products, but that they also will feel good RETAIL • FOODSERVICE • INDUSTRIAL about their decision to support hard-work- ing American dairy farm families.” CMN For more information please visit www.cheeseguys.com © 2017 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]) August 11, 2017 — CHEESE MARKET NEWS® 9 NEWS/BUSINESS

Producer Review Board releases revised quota implementaion plan, extends comments

SACRAMENTO, Calif. — The Producer sions related to the establishment of implementation plan released by PRB 916-900-5139. (For more information Review Board (PRB) has released a minimum regulated prices for farm milk is available online at www.cdfa.ca.gov/ on next steps, see “PRB holds meeting revised draft quota implementation and a pooling program to distribute the dairy/ProducerReviewBoard.html or by on CDFA stand-alone quota implemen- plan following its Aug. 2 meeting. PRB revenue from milk sales; however, it request by contacting Candace Gates at tation draft” in last week’s issue.) CMN also has extended comments on the specifi cally rejected all the provisions plan to Aug. 30. related to quota and exempt quota from PRB last week held a meeting to the proposals. review language of a Stand-Alone Quota Instead, USDA concluded that the EVENTS Implementation Plan drafted by staff of administration of quota and exempt the California Department of Food and quota would have to remain a function of Agriculture (CDFA). CDFA, be funded through assessments IDF World Dairy Summit is Oct. 29-Nov. 3 USDA in February announced a on California dairy producers and be BELFAST, Northern Ireland — The Dairy Leaders Forum and IDF Forum. recommended decision outlining the operated as a stand-alone program, the International Dairy Federation (IDF) The event will then hold conference details of a proposed federal milk details of which would be determined World Dairy Summit 2017 will take place sessions from Oct. 31 to Nov. 2, and Nov. marketing order (FMMO) in California. by CDFA. Oct. 29-Nov. 3 in Belfast, Northern Ireland. 3 will be dedicated to technical tours. The recommendation included provi- The revised draft stand-alone quota The program will take a comprehen- Conference sessions will include sive look at issues making a difference speakers from around the world, who CSPI tells FDA delay in menu labeling rule in dairy and provide insights into how will cover a range of topics from econom- delegates can make a difference to its ics to antimicrobial resistance. Sessions is unnecessary, harmful to consumers future, according to organizers. also will include panel discussions, With the theme “Making a Difference according to organizers. WASHINGTON — In comments re- citizens of their respective states. The with Dairy,” the conference will hold a Registration for the event is open. cently fi led with FDA, the Center for comments opposed the administration’s World Dairy Political/Agricultural Lead- For more information or to register, Science in the Public Interest (CSPI) delay and any changes to weaken menu ers Forum Oct. 30, followed by the World visit idfwds2017.com. CMN urges immediate implementation of labeling. the menu labeling fi nal rule requir- CSPI notes the majority of the ing calorie counts and other nutrition top restaurant, supermarket and 2018 ACS Conference & Competition to be information on menus. convenience store chains already are July 25-28; call for presentations now open CSPI was joined by nearly 50 other labeling calories. A recent survey of organizations in a letter opposing the the top 50 restaurant chains in 2016 PITTSBURGH — The American Sept. 22 and can be submitted at www. administration’s delay or “potential (by revenue, according to Nation’s Cheese Society (ACS) will hold the cheesesociety.org/events-education/ weakening” of menu labeling. Restaurant News) found that all 50 2018 ACS Conference & Competition, call-for-presentations. CSPI says the delay is both unneces- had calorie information either online themed “Forged in Cheese,” July 25-28, The co-chairs for the 2018 event will be sary and harmful to consumers who have or in the restaurant, and many covered 2018, at the David L. Lawrence Conven- Brian Keyser of Casellula Cheese & Wine a right to know how many calories are in establishments, including supermar- tion Center in Pittsburgh. In addition, Cafe; Kerry Kaylegian of the Pennsylva- their food, particularly since one-third kets and convenience stores, already the call for presentations for the 35th nia State University; and Lydia Burns of of calories come from foods consumed are complying with the menu label- annual conference currently is open, Pastoral Artisan Cheese, Bread & Wine. away from home. ing regulations as finalized, showing according to ACS. Registration for the event is an- CSPI also delivered more than 25,000 that posting calories is feasible and ACS says it welcomes proposals for ticipated to open in May 2018, accord- comments on the regulation to members already widely prevalent, according educational sessions from industry ing to ACS. For more information, of the U.S. Senate from concerned to CSPI. CMN members. All session proposals are due visit www.cheesesociety.org. CMN CLASSIFIED ADVERTISING

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For more information please visit www.centrifugesupplies.com For more information please • STORAGE 13 visit www.horizonsalesinc.com © 2017 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® — August 11, 2017 NEWS/BUSINESS

SHEEP Old Chatham started in 1993 with “It’s a really rich milk, high in com- mixed-milk EWE CALF to be KIDding 115 dairy sheep, and now its fl ock in ponents, with a nice clean, sweet fl avor,” Blue. Continued from page 1 New York’s Finger Lakes region ranges he says. “It’s also hypoallergenic, easily Hook’s Cheese — which currently from 1,200 to 1,400. The creamery always digestible for people who are lactose makes about eight sheep’s milk cheeses Despite the challenges, he points to has sourced milk from its own fl ock, intolerant, because it has very small in addition to three mixed-milk varieties a number of success stories across the only occasionally buying additional lactose molecules.” with sheep’s milk — fi rst added sheep’s United States, including Brenda Jensen frozen sheep’s milk from Wisconsin As in other years, Old Chatham’s milk varieties to its line-up in 2009 when of Hidden Springs Creamery, a suc- when demand for its cheese outpaces sheep’s milk cheeses and other dairy Brenda Jensen from Hidden Springs cessful sheep dairy and award-winning its milk availability. products performed well at the recent Creamery asked if Hook’s could make cheesemaker in Westby, Wisconsin; and Lewis Fox, fl ock manager at Old American Cheese Society (ACS) Judg- a Blue cheese with her sheep’s milk. Old Chatham Sheepherding Creamery Chatham, says while sheep’s milk pro- ing & Competition. Its line of sheep’s The collaboration resulted in Hook’s in New York, one of the largest sheep duction is pretty limited compared to milk yogurts swept the Yogurt and Little Boy Blue and Hidden Springs’ dairies in the country and one of the what you can get from a goat or cow, it Cultured Products with Flavor Added Bohemian Blue. Later, when Hidden fi rst to make sheep’s milk products in has unique attributes that make it ideal category. The company also won third- Springs started producing more sheep’s the United States. for cheesemaking. place awards for its Ewe’s Blue and mini milk, Hook’s purchased more from Kinderhook Creek 100-percent sheep’s the company and started making new milk cheeses and a second-place award sheep’s milk varieties. Currently Hook’s PEOPLE for its Kinderhook Creek, as well as receives 4,000-5,000 pounds of sheep’s second- and third-place awards for a milk a week from Hidden Springs for number of its mixed-milk cheeses. Ad- their cheeses. Obituary ditionally, Hudson Flower — a sheep’s While sheep’s milk cheeses still milk cheese Old Chatham makes for comprise a small percentage of his Murray’s Cheese, which then coats it company’s overall production, Hook Francis R. Daul with herbs and ages it — won fi rst in says the market for these cheeses has its category. been growing across the United States, LENA, Ill. — Francis R. Daul, 80, of Community Church, the Knights of Old Chatham also has been working especially among chefs and specialty Lena, Illinois, died June 26. Columbus, and was a past member of on several new varieties in response to cheese shops. Daul was born Feb. 3, 1937, in the Lena Lions Club and various dairy the growing interest it sees in sheep’s “We’ve had to ask for more milk Luxemburg, Wisconsin, to Anton and organizations. milk cheeses. because sales are growing every year,” Evelyn Daul. He graduated from Lux- Daul is survived by his wife, Barbara “We’ve been in business for over 20 Hook says, adding that the mixed milk emburg High School in 1955. From 1955 Daul; four children, Julie Amendt, Doug years and we haven’t been as aggressive cheeses especially are catching on. “Our to 1961, he served in the Army National Daul (fi ancee Stefanie Corbett), Diana in research and development as we have sheep’s milk Blue has been very well Guard. He attended the University of (Jeff) Jansen, and Colleen (Glen) in the last couple of years,” says Allyson received. The Sheep Milk Butterkase Wisconsin-Madison and received a cer- Williamson; seven grandchildren; four Brennan, national sales and marketing just won another award, and sheep’s tifi cate in dairy management. In 1962, sisters; one brother; one brother-in-law; manager, Old Chatham Sheepherding milk Cheddar has done well.” he attended WSU-Oshkosh, where he cousins; and many nieces and nephews. Creamery. “We’re working on Cheddars, Kieffer says following the ACS did not receive a degree, but instead Daul is preceded in death by his Goudas and different styles of bloomy awards, there typically is more de- gained a wife of 48 years. Daul married parents, two brothers, a nephew and rinds. ... In the next couple years here mand for the award-winning cheeses Barbara Schneider on Oct. 5, 1968, in two brothers-in-law. we’re hoping to really increase the and sheep’s milk. However, this also Oshkosh, Wisconsin. A memorial has been established variety of our offerings and categories corresponds with the end of the sheep Daul worked as a cheesemaker, in Daul’s memory. Online condo- to be a little more diverse.” milking season. cheese plant manager and dairy consul- lences and memories can be shared Tony Hook, owner of Hook’s Cheese, “Last month, the weather was really tant. He was a member of Crossroads at www.schwarzfh.com. CMN Mineral Point, Wisconsin, also has seen hot, and production had taken a dive. success and growing interest in his We had calls from two cheesemakers Comings and goings … comings and goings sheep’s milk and mixed milk varieties. who were really suffering and needed At the ACS competition, Hook’s won milk,” she says. “Cheesemakers can’t Biery Cheese Co., Louisville, Ohio, spend the year serving as a goodwill second for its Sheep’s Milk Butterkase keep their shelf space filled. We has announced the transition of two ambassador for Iowa’s dairy farmers. and Little Boy Blue, and third for its have a lot of work to do.” CMN key executives, effective immediately. Josie Buddenberg, 18, of Decorah, As part of the company’s leadership was named Alternate Iowa Dairy succession plan and the eventual re- Princess. Buddenberg will share du- USDA grants available for sheep projects tirement of Jeff Fairless, Fairless has ties with Grober. The new princess and ROCKLAND, Maine — The National • Enhance sheep production by im- assumed the role of chief operating of- alternate will begin their duties Sept. 1. Sheep Industry Improvement Center proving infrastructure of the U.S. sheep in- fi cer. Fairless previously served as the Mondelez International, East board of directors recently announced dustry through assistance to all segments company’s president. Additionally, Hanover, New Jersey, has announced it is accepting grant proposals for of the industry to address sustainable Joe Tomlinson has been promoted to that its board of directors has selected projects designed to improve the U.S. production and marketing of sheep milk, president. He previously served as the Dirk Van de Put, current president sheep industry. Applications will be meat, fi ber and related services such as company’s vice president of sales and and CEO of McCain Foods, to suc- accepted for the Sheep Production grazing and ranch management; marketing. Both Fairless and Tomlin- ceed Irene Rosenfeld as CEO of and Marketing Grant Program through • Enhance the sheep industry by son are longtime executives with the Mondelez International, as she steps Sept. 15, 2017. The center is provided coordinating information exchange and company. Fairless has been with the down effective November 2017. Van funding for this program by USDA’s seeking mutual understanding and mar- company for 17 years, beginning his de Put also will join the company’s Agricultural Marketing Service (AMS) keting within the industry community; career with Biery as general manager. board of directors. Rosenfeld will through the 2014 Farm Bill. • Provide integration of perfor- He also serves on the board of direc- continue as chairman of the board This year, approximately $300,000 mance/production data from sources tors for the International Dairy Food until March 31, 2018, at which point is available for the program. The aver- that can help enhance the sheep Association. Tomlinson joined the she will retire and Van de Put will as- age grant amount typically is around industry within the United States; and company in 2008 as a member of the sume the role of chairman and CEO. $27,000. Grant funding can be used on • Provide leadership training and sales team, where he held a number Van de Put brings nearly 30 years of activities designed to strengthen and education to sheep industry producers of management roles before assuming experience in the food and consumer enhance the production and marketing and packers. his previous position. Before joining package industry. He joins Mondelez of sheep and sheep products in the Unit- The board will review each proposal Biery, Tomlinson held a number of International from McCain Foods. ed States. This includes infrastructure and submit fi nal recommendations to management roles with Frito-Lay. During his six-year tenure as CEO development, business development, AMS for approval. Rachel Grober, a 17-year-old there, he grew net sales by more than production, resource development, and For more information, contact from Ionia, was recently crowned the 50 percent. Prior to joining McCain, market and environmental research. Steve Lee, program manager, National 64th Iowa Dairy Princess during an Van de Put held executive positions The center says projects should meet Sheep Industry Improvement Center, evening ceremony at the Iowa State with Novartis, Groupe Danone, The at least one of a number of objectives to at 207-236-6567, email stevelee@nsiic. Fairgrounds in Des Moines. Grober will Coca-Cola Co. and Mars Inc. CMN be considered for grant funding, such as: org, or visit www.nsiic.org. CMN © 2017 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]) August 11, 2017 — CHEESE MARKET NEWS® 11 NEWS/BUSINESS

dairy processors are eligible to receive up CANADA to C$10 million to support investments Continued from page 1 in equipment and infrastructure, and processors and not-for-profi t organiza- government says Canadian companies tions in the dairy sector can receive up to that previously did not have permits to C$250,000 to access technical, manage- import cheese now will be able to ap- rial and business expertise. ply for a share of the new CETA import The fund also will allow applicants to quotas. This is the fi rst time since the request access to Agriculture and Agri- 1970s that new cheese quotas are being Food Canada scientists to conduct col- allocated in Canada. laborative research on projects related to CETA will allow a total of 17,700 improving an existing product, practice, metric tons of cheese to enter Canada process or technology. from EU member countries. This num- The overall program budget is ber includes 800 metric tons Canada C$100 million, and the program will reallocated from its World Trade Orga- end March 31, 2021. CMN nization TRQs for cheese. The Canadian and do not necessarily refl ect those of government will gradually increase TRQ SCHMIT Cheese Market News®. levels to meet this total over a period Continued from page 4 of fi ve years. To start, it set a TRQ for *The risk of loss trading commodity the remainder of 2017 of more than 824 USDA futures and options can be substantial. metric tons for both cheese sold for retail Continued from page 1 surged. Without the premium that high- Investors should carefully consider and for further food manufacturing, and end whey buyers provided, processors the inherent risks in light of their the TRQ at 5,900 metric tons for 2018. chose alternate avenues for their milk. fi nancial condition. The information The new quotas will provide addi- For 2018, fat-basis exports are raised It is clear that the price of butter and contained herein has been obtained tional opportunities for Canadian busi- on stronger shipments of a number of the myriad of whey product offerings from sources believed to be reliable; nesses in the cheese sector, particularly dairy products, USDA says. Fat-basis are as important to determining milk however, no independent verifi cation small- and medium-sized enterprises, imports are lowered slightly. Skim-solid fl ows as cheese and nonfat dry milk. has been made. Information contained which will be allocated 60 percent of basis exports are raised on expected In essence, whey has become the new herein is strictly the opinion of its au- the quotas. Small- and medium-sized stronger sales of nonfat dry milk (NDM) pork belly. CMN thor and not necessarily of Rice Dairy cheese manufacturers will receive 30 and other dairy products while imports and is intended to be a solicitation. percent of the quota, and small- and are unchanged from last month. The views expressed by CMN’s guest Past performance is not indicative of medium-sized distributors and retail- Cheese and butter price forecasts columnists are their own opinions future results. ers will receive the other 30 percent. are raised for 2017 and 2018 as demand Meanwhile, large manufacturers will strength is expected to carry into 2018. be allocated 20 percent of the quotas Cheese is forecast to average in the and large distributors and retailers will $1.590-$1.610 per pound range in 2017, receive the other 20 percent. up from $1.575-$1.605 in last month’s The government says Canadian con- report. In 2018 cheese is expected to EXCLUSIVE KEY PLAYERS sumers also will benefi t as new varieties average in the $1.640-$1.740 range, up of European cheese will be made avail- from $1.630-$1.730 last month. In 2017, Our Annual Profile of Who’s If you’re looking able for consumption in Canada. Cana- butter now is forecast to average $2.425- Who in the Cheese Business for an in-depth dian companies of all sizes will benefi t $2.465, up from $2.365-$2.425 last compilation of the movers and shakers from new opportunities to import EU month, and in 2018 butter is expected in the cheese and dairy cheese and grow their businesses, the to average $2.2375-$2.505, up from industry, look no further. government adds. $2.310-$2.440 in last month’s report. CHEESE MARKET NEWS’ Key Players, our exclusive “We are on track for the provisional The NDM and whey price forecasts annual profile of who’s who application of CETA on Sept. 21. I am are reduced from the previous month in the cheese business, gives confi dent that we have set the stage for on weak demand, USDA says. NDM is you comprehensive information forecast to average $0.885-$0.905 in on companies leading the cheese exciting opportunities for Canadians in industry. Key Players features the cheese sector, particularly for our 2017, down from $0.900-$0.930 in last information on plant locations, sales small- and medium-sized enterprises,” month’s report. In 2018, USDA forecasts figures, acquisitions and mergers, Champagne says. “We held extensive NDM will average $0.905-$0.975, down expansions, new products and production data. consultations with a wide range of from its forecast of $0.935-$1.005 a Key Players is included annually in the stakeholders about the best way to al- month ago. Dry whey is forecast to June issue of CHEESE MARKET NEWS® locate the EU cheese quotas under CETA. average $0.455-$0.475 in 2017, down 2 but can be yours in a separate, These allocations will ensure benefi ts are cents from last month’s report. In 2018, Order easy-reference reprint for only $35 per copy. achieved throughout the value chain.” USDA forecasts dry whey will average Today! Under CETA, Canada established new $0.445-$0.475, down from its $0.480- Order your complete snapshot of the TRQs for cheese originating in the EU: $0.510 forecast a month ago. cheese industry’s Key Players today one for cheeses of all types and one for The 2017 Class III price forecast, 5315 Wall Street, Ste. 100 • Madison, WI 53718 use in further food processing (industrial at $15.90-$16.10 per hundredweight, Phone: (608) 831-6002 • Fax: (608) 288-9093 cheese). Each of the two CETA quotas will is unchanged at the mid-point, but the E-mail: [email protected] Website: www.cheesemarketnews.com be phased in over fi ve years. The quota 2018 price is lowered to $16.30-$17.30 for all types of cheese will be allocated as lower whey prices more than offset CHEESE MARKET NEWS® KEY PLAYERS REPRINT ORDER FORM: to eligible Canadian enterprises that are higher cheese prices, USDA says. NAME: ______METHOD OF PAYMENT (U.S. Funds Only): active in the manufacturing, distribution The Class IV price forecast for TITLE: ______PAYMENT Enclosed or retailing of cheese. The quota for in- 2017 is raised as stronger forecast COMPANY: ______Payment by $35 Credit Card dustrial cheese will be allocated entirely butter prices more than offset lower ADDRESS: ______VISA MasterCard American Express to processors for use in other foods. NDM prices. The 2017 Class IV price CITY: ______The Canadian government also has is forecast at $15.75-$16.05, up from STATE: ______ZIP: ______CARD #:______established the Dairy Processing Invest- $15.65-$16.05. The 2018 Class IV price PHONE: ( ______) ______EXPIRATION DATE: ______ment Fund to provide funding to dairy forecast is unchanged at $15.70-$16.80. EMAIL: ______SECURITY CODE: ______processors for investments that will im- The all-milk price is raised to $17.80- DATE: ______SIGNATURE: ______prove productivity and competitiveness $18.80 for 2017, up from $17.65-$17.95 For immediate service email [email protected] or call 608.831.6002 and help prepare them for the implemen- in last month’s report, but is un- SUBSCRIBER SERVICES • 5315 Wall Street, Ste. 100 • Madison, WI 53718 • FAX 608.288.9093 tation of CETA. Cheesemakers and other changed at $18.00-$19.00 for 2018. CMN For more information please visit www.cheesemarketnews.com © 2017 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® — August 11, 2017 NEWS/BUSINESS

Brick, Muenster: Matt Henze, purchased by DSM for $105 per pound Decatur Dairy, Brodhead, made the 10 for a total of $1,890. pounds of Brick purchased by Kelley Flavored Pepper Cheese: Marc Supply for $120 per pound for a total Druart, Emmi Roth, Monroe, made of $1,200. the 10 pounds of Roth Sriracha Gouda Open Class for Soft & Spreadable purchased by State Fair Park Board for Cheese: Crave Cheese Team, Crave $350 per pound for a total of $3,500. Brothers Farmstead Cheese, Waterloo, Sheep & Mixed Milk Cheese: Mike made the 10 pounds of Mascarpone Matucheski, Sartori Co., Antigo, made purchased by Wells Fargo for $140 per the 20 pounds of Sartori Limited Edition pound for a total of $1,400. Pastorale Blend purchased by West Allis Colby, Monterey Jack: Andy Fol- Cheese Shoppe for $260 per pound for len, Lynn Dairy, Granton, made the 40 a total of $5,200. pounds of Monterey Jack purchased Havarti: Decatur Dairy Cheesemak- by DSM for $30 per pound for a total ers, Decatur Dairy, Brodhead, made of $1,200. the 10 pounds of Havarti purchased by Natural Goat Milk Cheese: Katie Nelson-Jameson for $320 per pound for Fuhrmann & Team LaClare, LaClare a total of $3,200. Photo by Alyssa Mitchell/Cheese Market News Farms, Malone, made the 10 pounds of Butter: Foremost Farms 3rd Shift, GRAND MASTER — Plant manager Gary Gosda, second from left, accepts the Grand Master Aged Goat Cheese purchased by Dairy Foremost Farms USA, Reedsburg, Cheese Maker award on behalf of Team Lake Country Dairy, Schuman Cheese, Turtle Lake, Wiscon- Products Marketing for $290 per pound made the 10 pounds of Salted Butter sin, for Monteau. Monteau was the fi rst-place entry in the Smear Ripened Cheese class at the 2017 for a total of $2,900. purchased by Ivarson Inc. for $220 Wisconsin State Fair Cheese & Butter Contest. Chr. Hansen purchased 22 pounds of the cheese for Mozzarella: Roger Krohn, Agropur, per pound for a total of $2,200. CMN $50 per pound for a total of $1,100. Also pictured, from left: John Umhoefer, executive director of the Wisconsin Cheese Makers Association (WCMA); outgoing Wisconsin Ag Secretary Ben Brancel, who Luxemburg, made the 13 pounds of is retiring; and Kirsten Henning, events manager, WCMA. Low-Moisture, Whole-Milk Mozzarella purchased by Ebert Enterprises for $100 per pound for a total of $1,300. FDA to exercise AUCTION Nelson-Jameson for $120 per pound for Latin American Cheese: Jace John- discretion on UF a total of $1,200. srud, Chula Vista Cheese, Browntown, Continued from page 1 String Cheese: Dan Schwind, Baker made the 10 pounds of Chihuahua Loaf milk labeling, use Cheese Factory, St. Cloud, made the purchased by Masters Gallery Foods for in cheesemaking made the 20 pounds of Sartori Reserve 10 pounds of String cheese purchased $220 per pound for a total of $2,200. Chipotle BellaVitano purchased by by Masters Gallery Foods for $230 per Open Class For Semi-Soft Cheese: WASHINGTON — FDA this week issued Berenz Packaging for $70 per pound pound for a total of $2,300. Marieke Penterman, Marieke Gouda, a guidance to advise manufacturers for a total of $1,400. Flavored Semi-Soft Cheese: John Thorp, made the 20 pounds of Marieke who wish to use ultrafi ltered (UF) milk Pasteurized Process Cheese, (Randy) Pitman, Mill Creek Cheese, Belegen Gouda purchased by Ivarson or UF nonfat milk in the production Cheese Food, Spread: AMPI Slice Arena, made the 10 pounds of Caraway Inc. for $130 per pound for a total of of standardized cheeses and related Team, Associated Milk Producers Inc., Brick purchased by Cheese Market News $2,600. cheese products. In the guidance, FDA Portage, made the 10 pounds of Pas- for $75 per pound for a total of $750. Aged Cheddar: Jacque Vey, Land says it intends to exercise enforcement teurized Process American purchased Blue Veined Cheese: Team Fond du O’Lakes, Kiel, made the 40 pounds of discretion regarding the use and label- by Nelson-Jameson for $110 per pound Lac, Saputo Specialty Cheese, Milwau- Aged Cheddar purchased by Masters ing of UF milk and UF nonfat milk in for a total of $1,100. kee, made the 12 pounds of Black River Gallery Foods for $165 per pound for a cheeses when used in addition to the Open Class for Hard Cheese: Chris Blue Cheese purchased by Alpma USA total of $6,600. dairy ingredients specifi ed in the stan- Roelli, Roelli Cheese Co., Shullsburg, for $80 per pound for a total of $960. Cold Pack Cheese, Cheese Food: dards of identity. made the 11 pounds of Dunbarton Reduced Fat or Lite Cheese: Team Pine River, Pine River Pre-Pack, While FDA is encouraging cheese purchased by John Yingling for $150 Steve Webster, Klondike Cheese Co., Newton, made the 11 pounds of Swiss & manufacturers to identify fl uid UF milk per pound for a total of $1,650. Monroe, made the 10 pounds of Odys- Almond Cold Pack purchased by Saputo and fl uid UF nonfat milk on product Flavored Havarti: Ron Bechtolt, sey Reduced Fat Feta purchased by for $210 per pound for a total of $2,310. labels when feasible and appropriate, Klondike Cheese Co., Monroe, made the Chr. Hansen for $50 per pound for a Feta: Nathan Forseth, Agropur, FDA makes clear in its guidance that it 10 pounds of Dill Havarti purchased by total of $500. Weyauwega, made the 18 pounds of Feta does not intend to take action against companies that do not declare these items on ingredient statements. How- More News, More Solutions, Yes, ever, milk or nonfat milk still must be please send me declared in the ingredient statement. More Choices! the Exclusive This guidance stems from a proposed 2017 Key Players rule on the use of fl uid UF milk in cheese Reprint for only $35! manufacturing that was fi rst issued Released 6/1/17. in 2005 but has not been completed (Credit Card Prepayment Only) due to competing priorities. FDA says it intends to exercise enforcement CHEESE MARKET NEWS® SUBSCRIPTION FORM: discretion until it has completed its 1 Year Rates (52 issues) 2 Year Rates (104 issues) ELECTRONIC 1 Year Rates (52 issues) rulemaking process or has decided not 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) to proceed with the rulemaking. F $330 (International) F $525 (International) F $210 (Email With 2nd Class Mail Service Only)