Dairy Industry Players Discuss Prospects for 2012 Farm Bill
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Volume 31 January 13, 2012 Number 51 Scan this code for breaking Dairy industry players discuss news and the latest markets! prospects for 2012 Farm Bill By Alyssa Sowerwine Congress has made it very dif- Deficit Reduction, commonly year, the fact that nothing was ficult for progress to be made referred to as the “supercom- passed creates an opportunity INSIDE WASHINGTON — With the on any legislation, let alone mittee,” last fall. While that to “wipe the slate clean” to al- 112th Congress reconvening for dairy reform. package was declared “dead low for further discussion and F Export Tool Kit: its second session this month, David Hickey, director of on arrival” since the supercom- negotiation, Slominski notes. ‘2012: The good, the the dairy industry is eager to government relations for the mittee failed to come to an Hickey notes that even if bad and the unknown.’ move forward on the antici- National Milk Producers Fed- agreement, it still will likely progress is made in farm bill For details, see page 4. pated 2012 Farm Bill. eration (NMPF), also notes be used as a springboard for hearings throughout early Stakeholders say much that stalled progress on federal reform going forward, industry 2012, there may not be enough F Estate Cheese Group uncertainty surrounds both the debt and budget negotiations stakeholders say. time to negotiate and pass a bill acquires Sonoma content and timing of the farm has created a backlog of sorts. The full package submitted by the end of the year. Creamery from Pulmuone, legislation, as well as the fund- Hickey adds that while de- to the supercommittee has not Chelsee Woodey, director Monterey Gourmet Foods. ing outlook for the agriculture fense spending took a hit in the been released in its entirety, so of legislative affairs for IDFA, For details, see page 6. sector going forward. latest budget agreement passed it is not fully clear what all was notes that if the agriculture • Outlook on progress F in late 2011, there has been included, but it is understood committees cannot come White House responds The outlook for completing to raw milk petition. talk of reallocating some of that some aspects of the Dairy to an agreement before the a farm bill in 2012 is somewhat those cuts, with agriculture not Security Act (DSA) introduced current farm bill expires in For details, see page 19. mixed. Jerry Slominski, senior exempt from that possibility. by Rep. Collin Peterson, D- September, it is quite possible F Retail WATCH Exclusive: vice president for legislative “It’s as uncertain of an en- Minn., were part of the package, that Congress will reauthorize Clock Shadow Creamery affairs and economy policy for vironment as you can imagine,” Slominski says. Included in that a short-term extension of the gears up to open. the International Dairy Foods he says. legislation is a controversial 2008 Farm Bill. Under such Association (IDFA), notes that For details, see page 21. It is expected that the program to require produc- an extension, the farm bill the divisiveness of the 112th Senate will begin hearings on ers who choose to enroll in debate would be pushed back the farm bill later this month margin protection insurance until after the 2012 elections or early next, says Andrew to agree to also participate in or even into 2013 with the pros- Ice cream, yogurt follow lead Novakovic, professor of agri- government-mandated produc- pect that there may be a new cultural economics at Cornell tion controls, IDFA says. Congress or administration to of cheese into artisan sector University, Ithaca, N.Y. Novakovic notes that in the start over. He notes that Sen. Debbie past the House typically has “The bottom line is, when By Rena Archwamety Stabenow, D-Mich., chair of the taken the reigns with negoti- it comes to agriculture policy Senate Agriculture Commit- ating a new farm bill but that and the farm bill, everything MADISON, Wis. — Artisan cheeses have been a mainstay among food- tee, is eager to get a farm bill Lucas seems to be taking more is on the table, including dairy lovers and restaurant menus for years. Now the “specialty,” “craft” and passed. Stabenow and House of a “wait-and-see” approach policy,” Woodey says. “artisan” tradition has moved beyond cheeses and beers to small-batch, Agriculture Committee Chair this year to see what the Senate Hickey says that while indulgent and unique dairy products in ice cream and yogurt categories. Frank Lucas, R-Okla., agreed on comes up with. it is a priority to get a new A number of emerging ice cream and yogurt makers recently have a $23 billion package of dairy Even with the possibility farm bill passed in 2012, the introduced products for retail and foodservice that focus on local reforms that was submitted to of building off the package of industry does not just want “a or best-quality ingredients and hand-made processes that result in the Joint Select Committee on reforms negotiated late last Turn to REFORM, page 16 a premium artisan products. “I align myself a lot with the artisan cheese world,” says Jeni Brit- ton Bauer, founder of Jeni’s Splendid Ice Creams, based in Columbus, Ohio. “The companies I look up to include Cowgirl Creamery, Vermont Butter and Cheese Creamery and Cabot Creamery.” TCCA to cut 50 packaging USDA bumps up Bauer explains that a lot of science and attention to milk quality its milk price goes into her ice creams. She works with a small Ohio dairy, Snowville positions at plant in Feb. forecast for 2012 Creamery, which produces milk from grass-pastured cows. TILLAMOOK, Ore. — Tillamook County Creamery Association (TCCA) “Their 2-percent milk tastes like whole milk, and their whole milk is like recently announced to its farmer-owners and employees a reduction of WASHINGTON — The U.S. a luxury. It’s wonderfully flavorful,” she says of Snowville’s milk. “We start packaging positions at its Tillamook, Ore., facility beginning in February. milk production estimate with raw milk, worry about what the cows eat. The way we process the milk, TCCA is estimating a reduction of 50 packaging operator positions. for 2011 was lowered slightly we build the recipe slowly, batch pasteurize slowly. We don’t buy a mix.” The association notes this does not necessarily mean that 50 individu- in USDA’s “World Agricul- Jeni’s Splendid Ice Creams entered the wholesale market about als will be directly impacted and through normal attrition and retire- tural Supply and Demand two years ago and currently are available in 200-300 stores across the ments, the number of people directly impacted may be less than 50. Estimates” report released United States. Jeni’s also has been available through online gourmet The job cuts are the result of a decision to move some of TCCA’s Thursday due to lower ex- retailer Dean & Deluca for the past 5-6 years, and there are 10 Jeni’s packaging operations to two co-packers to cut, wrap and distribute pected cow numbers for the retail stores that serve treats such as cheesecake ice cream parfaits Tillamook cheese, notes Harold Strunk, TCCA president and CEO. fourth quarter. in Columbus and Cleveland, Ohio, and Nashville, Tenn. The co-packers have facilities that are more centrally located to Final numbers are not Bauer has been making ice cream since 1996. She started selling her TCCA’s growing customer base, he says. yet available, but USDA “Scream” ice cream at the Columbus North Market, mixing her ice creams Strunk notes that as the Tillamook brand continues to grow, it estimates 2011 production with what ingredients were available, including various cheeses, spices and has become more challenging to efficiently serve TCCA’s customers totaled 196.0 billion pounds, a Turn to ARTISAN, page 12 Turn to TILLAMOOK, page 17 a Turn to WASDE, page 17 a Reprinted with permission from the Jan. 13, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 2 CHEESE MARKET NEWS® — January 13, 2012 MARKET INDICATORS Chicago Mercantile Exchange CHEESE FUTURES for the week ended January 12, 2012 Cash prices for the week ended January 13, 2012 (Listings for each day by month, settling price and open interest) Monday Tuesday Wednesday Thursday Friday Fri., Jan. 6 Mon., Jan. 9 Tues., Jan. 10 Wed., Jan. 11 Thurs., Jan. 12 Jan. 9 Jan. 10 Jan. 11 Jan. 12 Jan. 13 JAN12 1.635 1,109 1.617 1,119 1.613 1,119 1.615 1,117 1.615 1,117 Cheese Barrels FEB12 1.670 938 1.627 941 1.632 952 1.638 956 1.630 949 Price $1.5875 $1.5800 $1.5800 $1.5800 $1.5500 MAR12 1.673 970 1.670 970 1.657 967 1.680 968 1.676 970 APR12 1.679 857 1.679 832 1.679 832 1.679 832 1.682 834 Change -1/4 -3/4 NC NC -3 MAY12 1.679 709 1.679 709 1.670 714 1.681 714 1.696 716 Cheese 40-lb. block JUN12 1.690 529 1.690 523 1.692 523 1.695 523 1.710 525 JUL12 1.712 376 1.718 374 1.719 374 1.722 374 1.738 376 Price $1.6000 $1.5950 $1.5950 $1.5950 $1.5950 AUG12 1.719 319 1.723 319 1.729 319 1.735 319 1.743 330 Change -1 -1/2 NC NC NC SEP12 1.740 301 1.740 301 1.735 301 1.740 301 1.760 303 OCT12 1.720 264 1.720 264 1.720 264 1.720 264 1.735 266 Weekly average (Jan.