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Outshred Your Competition CHEESE REPORTER www.URSCHEL.com Vol. 144, No. 5 • Friday, July 19, 2019 • Madison, Wisconsin US Cheese Exports Projected To Volume Of Milk Pooled On California Rise 8% In 2019, Set New Record Federal Order Fell In Washington—Prospects for US import tariffs for such EU cheeses cheese shipments through April June; Class III Use cheese exporters have “improved as Cheddar are gradually phased were up 3 percent, with strong Increased To 58% markedly,” particularly with the out, over 16 years, under the FTA, gains posted to such markets as the A total of 2.373 recent removal of Mexican retal- US importers will face the chal- US and Japan, up 7 percent and Woodland, CA— billion pounds of milk was pooled iatory tariffs, according to Dairy: lenge of a 30-percent import tariff. 18 percent year over year, respec- on the California federal milk World Markets and Trade, which This year, Japanese imports of EU tively. However, based on simi- marketing order in June, down was released Thursday by USDA’s cheese in the January-May period lar export patterns of past years, 211.3 million pounds from May’s Foreign Agricultural Service were up 18 percent over the same shipments are likely to slow dur- record volume, according to fig- (FAS). period last year. ing the balance of the year. The ures released late last week by the US cheese exports this year are The EU cheese production fore- 2019 EU cheese export forecast is California market administrator’s slated to grow by 8 percent over cast for 2019 is raised by 65,000 unchanged, reflecting a 1 percent office. tons. Although cheese production increase over last year. last year, to a record 833.9 million Despite the decline, California was up only 0.5 percent through The 2019 cheese produc- pounds, the report said. The previ- in June still ranked second among April, the growing availability of tion forecast for New Zealand is ous cheese export record, 810 mil- all federal orders in terms of the milk during the remainder of the reduced by 1 percent as it appears lion pounds, was set in 2014. volume of milk pooled during FAS is projecting that US year is expected to lead to higher that more manufacturing milk is likely to be prioritized towards the June, trailing only the Upper Mid- cheese exports will increase cheese production, resulting in west order’s 3.248 billion pounds. another 6 percent in 2020, to 881 an annual 1 percent increase over production of whole milk powder, the report said. The Northeast order ranked third, million pounds. 2018, the report said. at 2.246 billion pounds. Nevertheless, the European Most of the additional EU Still, New Zealand is expected to draw down cheese stocks to California’s June milk produc- Union (EU) remains a “dominant cheese will go to domestic use, tion in recent years has ranged competitor” for US cheese export- which is expected to grow by support an expansion in cheese exports. As a result, the export from a low of 3.29 billion pounds ers, and its recent free trade agree- slightly over 1 percent this year. in 2017 to a high of 3.55 billion ments (FTAs) with Mexico and Cheese consumption in the EU forecast is revised up by 3 percent to 794 million pounds. pounds in 2014. Thus, it appears Japan will further intensify com- has been growing over the past five that close to 1 billion pounds of petition, the report said. Mexico years at an average rate of nearly 2 New Zealand cheese shipments in the first five months of 2019 milk was depooled from the Cali- is the number one market for US percent annually. fornia federal order in June. cheese exports. During the past two years, about were running 7 percent ahead of last year, with most of the product Also in June, the volume of milk Last year, Japan was the third- 8 percent of total EU cheese out- pooled in Classes III and IV, and largest US cheese export mar- put was channeled into export being shipped to Japan, China and Australia. China’s import market utilization percentages in those ket and the primary market for markets and this pattern is likely classes, continued to fluctuate sub- US Cheddar, the report said. As to be repeated, the report said. EU • See Cheese Exports, p. 7 stantially on the California order. A total of 1.377 billion pounds of milk was pooled in Class III Global Dairy Trade Plant-Based Food Sales Up 11%; in June, up 582.8 million pounds Price Index Rises from May and the largest volume Sales Of Plant-Based Cheese Up 19% of milk pooled in Class III since 2.7%; DairyAmerica San Francisco, CA—US retail 2019, sales of plant-based “milk” March, when Class III volume sales of plant-based foods grew 11 were valued at $1.9 billion, up 6 totaled 1.416 billion pounds. The Relaunches Skim percent over a recent 12-month percent from a year earlier. California order’s Class III utili- Milk Powder period, bringing the total plant- Sales of plant-based “cheese” based market value to $4.5 bil- were valued at $160 million for • See CA Federal Order, p. 6 Auckland, New Zealand—The lion, according to new data from the 52-week period ending April price index on this week’s Global the Plant Based Foods Associa- 21, up 19 percent from a year ear- Dairy Trade (GDT) dairy com- tion (PBFA) and the Good Food lier, the PBFA figures show. Sales WPC: Mostly Prices modity auction increased 2.7 per- Institute (GFI). of plant-based “butter” were val- June Averages 2010 – 2019: USDA cent from the previous auction, The data represents retail sales ued at $189 million, up 5 percent. held two weeks ago. of plant-based foods that directly For other plant-based dairy $1.65 That marked the first increase replace animal products, includ- alternatives, sales for the 52-week in the GDT price index since the ing dairy, meat, seafood and eggs, period ending April 21, 2019, $1.50 first auction in May. as well as meals that contain compared to a year earlier, were as In this week’s auction, which fea- plant-based alternatives, and was follows: ice cream, $304 million, $1.35 tured 174 participating bidders and obtained over the 52-week period up 26 percent; yogurt, $230 mil- $1.20 116 winning bidders, prices were ending April 21, 2019. lion, up 39 percent; creamer, $226 higher for Cheddar cheese, skim Since April 2017, total plant- million, up 40 percent; ready-to- $1.05 milk powder, whole milk powder, based food sales have increased 31 drink beverages, $103 million, up butter and anhydrous milkfat and percent, according to the PBFA. 23 percent; and spreads, dips, sour $0.90 lower for rennet casein. In terms of dollar sales, milk cream, and sauces, $21 million, Buttermilk powder wasn’t is by far the leading category for up 52 percent. $0.75 offered, and average prices weren’t plant-based food sales. For the • See DairyAmerica’s SMP, p. 4 52-week period ending April 21, • See Plant-Based Foods, p. 5 $0.60 2010 2013 2016 2019 Page 2 CHEESE REPORTER July 19, 2019

Past Issues Read this week’s issue EDITORIAL COMMENT or past issues of Cheese Reporter on it’s worth remembering that, your mobile phone or tablet by scanning this when it comes to buying food, the QR code. DICK GROVES number one factor cited by consum- Cheese Reporter Publishing Co. Inc. ©2019 ers is taste. And this may ultimately be where Perfect Day really shines 2810 Crossroads Drive, Suite 3000 Publisher / Editor Madison, WI 53718-7972 compared to plant-based dairy alter- (608) 246-8430 • Fax (608) 246-8431 Cheese Reporter natives. http://www.cheesereporter.com e: [email protected] DICK GROVES tw: @cheesereporter Publisher/Editor e-mail: [email protected] 608-316-3791 Is Perfect Day A Threat To Plant-Based Dairy Alternatives? MOIRA CROWLEY The dairy industry officially entered Perfect Day’s products: nutritional plant sugar into milk proteins that Specialty Cheese Editor e-mail: [email protected] some sort of new era last week with superiority. are nutritionally identical to those 608-316-3793 Perfect Day’s introduction of “ice As we’ve mentioned before in that come from cows; and those KEVIN THOME cream” made with the company’s this space, one of the big short- proteins are used in foods ranging Advertising & Marketing Director “non-animal whey protein.” How comings of plant-based dairy alter- from ice cream to yogurt. e-mail: [email protected] this new era plays out for the dairy natives is in the area of nutrition It seems like Perfect Day has 608-316-3792 industry will be mighty interesting in general and protein content a better “sustainability” story to BETTY MERKES Classifieds/Circulation Manager to watch. specifically. For example, Anita’s tell about its fermentation process e-mail: [email protected] As reported on our front page Coconut Milk Yogurt Alternative than does a company that sources 608-316-3790 last week, Perfect Day launched a contains “a nominal amount of the ingredients for its plant-based REGULAR CONTRIBUTORS: limited edition frozen dairy dessert, protein,” according to the com- foods from around the globe. But Jen Pino-Gallagher, Bob Cropp, Neville which is made with the company’s pany’s website. “In contrast, high the sustainability of Perfect Day’s McNaughton, Dan Strongin, John Umhoefer protein yogurts are made with ani- animal-free dairy proteins versus You can e-mail our contributors at: flora-based, animal-free dairy pro- [email protected] tein. The ingredient statement mal products or additives.” plant-based dairy alternatives will specifically includes “non-animal Now, thanks to Perfect Day, be up to consumers to decide. The Cheese Reporter is the official whey protein” as one of the main high protein yogurts don’t neces- Finally, it’s worth remember- publication of the following associations: ingredients (after water, sugar, sarily have to be made with animal ing that, when it comes to buy- California Cheese & Butter Association coconut oil and sunflower oil in the products; they can be made with ing food, the number one factor Lisa Waters, cited by consumers is taste. And 1011 Pebble Beach Dr, Clayton, CA 94517 Vanilla Salted Fudge and Vanilla “animal-free” dairy proteins. Blackberry Toffee varieties). Further, Perfect Day claims that this may ultimately be where Per- Central Wisconsin Cheesemakers’ and Buttermakers’ Association Perfect Day’s animal-free whey its proteins are identical to the fect Day really shines compared to Jim Mildbrand protein raises a number of ques- proteins found in cow’s milk, so if plant-based dairy alternatives. [email protected] tions, particularly as far as con- and when Perfect Day (or a com- As reported on our front page Cheese Importers Association of America sumer acceptance is concerned, pany using its proteins) introduces this week, sales of plant-based dairy 204 E St. NE, Washington, DC 20002 and it also raises a question about beverage “milk,” that product will alternatives continue to increase. Eastern Wisconsin Cheesemakers’ and how much the company’s products have as much protein as conven- But despite claims by many plant- Buttermakers’ Association Barb Henning, Henning’s Cheese will impact the dairy industry in tional cow’s milk (eight grams per based dairy alternative manufac- 21812 Ucker Road, Kiel, WI 53042 the future. Our guess is quite a bit, eight-ounce serving). By contrast, turers that their products taste International Dairy-Deli-Bakery Association but that remains to be seen. many plant-based “milks” contain great, well, we remain skeptical. 8317 Elderberry Road, Madison, WI 53717 But there’s another potential one gram or less of protein per Compared to traditional dairy Missouri Butter & Cheese Institute impact of Perfect Day’s animal-free serving. products, most if not all plant- Terry S. Long, 19107 Factory Creek Road, dairy products that might, in some Sustainability is a major selling based products come up short in Jamestown, MO 65046 ways, actually help the dairy indus- point for many if not most plant- the taste department, to put it Nebraska Cheese Association try. And that potential impact has based dairy alternatives. For exam- diplomatically. That’s not all that Ed Price, Fremont, NE 68025 to do with plant-based dairy alter- ple, Daiya says it is “dedicated to surprising, given the lengthy list New York State Cheese Manufacturer’s Assn natives. producing food responsibly, from of ingredients that go into making Kathyrn Boor, 11 Stocking Hall, Cornell University, Ithaca, NY 14853 There would appear to be several the way it’s grown and resourced many of these products. reasons why Perfect Day’s products to our dedication to reducing our But Perfect Day’s animal-free North Central Cheese Industries Assn Lloyd Metzger, SDSU, Box 2104, could impact the plant-based food carbon footprint.” dairy proteins are different, accord- Brookings, SD 57007 business more than they impact But the company’s Medium ing to the company, which states North Dakota Cheese Makers’ Assn the traditional dairy business in Cheddar Style Farmhouse Block that its proteins are identical to Chuck Knetter, Medina, ND 58467 the years ahead. Two of those have contains, in addition to filtered the proteins found in cow’s milk, Ohio Swiss Cheese Association to do with consumer benefits. water, the following ingredients: imparting to food products the Lois Miller, P.O. Box 445, Specifically, Perfect Day’s prod- tapioca starch, coconut oil, vegan nutrition, texture, and “delicious Sugar Creek, OH 44681 ucts are touted as being lactose- natural flavors, pea protein isolate, taste” of conventional dairy. South Dakota State Dairy Association Howard Bonnemann, SDSU, Box 2104, free, and also touted as vegan. A non-GMO expeller pressed: canola Obviously, Perfect Day’s ani- Brookings, SD 57007 quick check of the websites of sev- and/or safflower oil, chicory root mal-free proteins will provide Southwestern Wisconsin eral plant-based dairy alternative extract, sea salt, xanthan gum, lac- significant competition for dairy Cheese Makers’ Association manufacturers found that these tic acid (vegan), tricalcium phos- proteins in the future. But given Myron Olson, Chalet Cheese Coop, two product attributes are among phate, pea starch, potato protein, the supposed benefits being touted N4858 Cty Hwy N, Monroe, WI 53566 several benefits regularly promoted vegan enzyme, cane sugar, annatto, by many marketers of plant-based Wisconsin Association for Food Protection for these products. and coconut cream. dairy alternatives, Perfect Day’s Bob Wills PO Box 620705, Middleton WI 53562 In other words, consumers will Meanwhile, Perfect Day explains animal-free proteins may ulti- Wisconsin Cheese Makers’ Association be able to partake of Perfect Day’s that there are three “simple steps” mately pose a bigger threat to the John Umhoefer, 5117 W. Terrace Dr., flora-based, animal-free dairy to creating its animal-free dairy plant-based alternative industry. Suite 402, Madison, WI 53718 protein rather than plant-based proteins: milk’s essential genes Wisconsin Dairy Products Association non-dairy protein. That leads to are added to microflora; the dairy Cheese Reporter welcomes letters to the Brad Legreid, 8383 Greenway Blvd., editor. Comments should be sent to Dick Middleton, WI 53562 another potential advantage of flora uses fermentation to convert Groves, at [email protected].

CHEESE REPORTER (Publication Number: ISSN 0009-2142). Published weekly by Cheese Reporter Publishing Co. Inc., 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-7972; Phone: (608) 246-8430; Fax: (608) 246-8431. Subscriptions: $140.00 per year in USA; Canada and Mexico: $195.00 per year; other foreign subscribers, please write for rates. Advertising and Editorial material are copyrighted material. Any use without publisher’s consent is prohibited. Cheese Reporter does not endorse the products of any advertiser or any editorial material. POSTMASTER: If undeliverable, Form 3579 requested. Periodicals postage paid at Madison, WI. Address all correspondence to: Cheese Reporter, 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-7972 July 19, 2019 CHEESE REPORTER Page 3

of order reform, the Class I utiliza- To Reduce Cash Northeast Order To Reduce Shipping tion for the months of September, Balance, CDFA Percentages In Sept., Oct. And Nov. October, and November averaged 49 percent of the volume of To Reduce Quota Boston, MA—A request to reduce ber, and November, 2019, to the milk pooled during those months, the shipping percentage for the 10 percent level. Boockoff noted. In 2018, Class I Implementation Plan Northeast federal milk marketing And Upstate Niagara Coopera- utilization for these same three Assessment order for the months of September, tive, a cooperative handler and months averaged 34.6 percent of October and November from 20 operator of pool distributing and Sacramento, CA—The California the total pool. percent to 10 for pool supply plants partially regulated pool distribut- The volume of milk pooled on Department of Food and Agricul- regulated under the order has been ing plants, supported a reduction ture (CDFA) will, beginning Sept. the Northeast order through the approved by Shawn Boockoff, act- for the months of September, first five months of 2019 is the 1, 2019, reduce the assessment to ing market administrator. October, and November, for the fourth largest volume since the fund the quota premiums to be Pool handler Queensboro Farm 2019 calendar year only, but only inception of the Northeast order, paid to quota producers from the Products, Inc., an operator of a sup- to the 15 percent level. but it is the lowest of the past four current rate of $0.0436 per pound ply plant under the provisions of Monthly pool statistics con- years, Boockoff pointed out. Mean- of solids not fat to $0.0374 per the Northeast order, had requested tinue to present a picture of while, during the same period, the pound of solids not fat. that the shipping percentage for declining Class I utilization for the The California Food and Agri- the months of September, October Northeast order, Boockoff noted. pounds of milk utilized in Class IV cultural Code provides that if a and November be lowered from 20 Though there had been some ranked second highest since the federal milk marketing order is to 10 percent until further notice. slowing of this trend over the past order’s inception (only the same established in the state, the CDFA In consideration of the current three years, 2019 utilization figures period in 2017 ranked higher). secretary is authorized to estab- milk price cycle and the potential through May showed evidence of a Though not during the past lish a stand-alone quota program, impact on future milk production return to a steeper decline. 12 months, the closure of long- and allows for the program to be within the region, the decision at The Class I utilization for May operating Class I bottling plants funded by an assessment on milk this time will be limited to 2019 2019, at 703.5 million pounds, was in the Northeast marketing area produced in the state. and 2020, Boockoff stated. the lowest volume for the month remains indicative of continued The Quota Implementation In its March 2019 petition, in 20 years, Boockoff pointed out. soft demand for milk supplies to be Plan (QIP) was developed after Queensboro cited declining Class At 29.9 percent, Class I utilization used in Class I products, Boockoff a series of meetings of the Pro- I sales, a decline in the number was the lowest ever for the month said. Requiring additional volumes ducer Review Board (PRB). of Class I customers seeking to and the sixth-lowest Class I utili- of raw farm milk to be delivered to Subsequently, a referendum was purchase milk for Class I use, and ation by percent for any month bottling plants that would appear conducted and dairy producers a comment that the company, since the Northeast order’s incep- to have adequate milk supplies for approved the QIP. as a long-standing participant in tion in 2000. the level of sales they have could Article 9 of the QIP provides the Northeast dairy industry, was In 2000, the year in which the lead to disorderly marketing sce- for a quota revenue assessment to unaware of any instances where 20 percent fall month shipping narios within the milkshed of the fund the quota premiums to be Class I needs have not been cov- percentages were adopted as part Northeast federal order. paid to quota producers. The rate ered. of this assessment was initially set Several handlers submitted at $0.0436 per pound of solids not comments regarding Queensboro’s fat. At that rate, more money has request. Cayuga Marketing LLC, a been collected than was needed cooperative handler, supported the to pay quota premiums, according reduction from 20 to 10 percent for to Donald Shippelhoute, special the months of September, Octo- assistant, Marketing Services Divi- ber, and November, until further sion, CDFA. notice. Cayuga Marketing claimed To reduce the cash balance in it would be forced into maintain- DELIVERING LEADING EDGE SOLUTIONS the fund, per a recommendation of ing uneconomic milk sales in an TO THE BEST IN THE INDUSTRY the PRB at a meeting last month, effort to meet a 20 percent mini- WITH PASSION AND COMMITMENT the CDFA decided to reduce the mum requirement. rate to $0.0374 per pound of solids Dairy Farmers of America- not fat. It is anticipated that this Northeast Area, a cooperative rate will reduce the cash balance handler and operator of multiple to a more appropriate level in 12 pool supply plants, supported the months, Shippelhoute indicated. reduction from 20 to 10 percent for At that time, the CDFA and the months of September, October PRB will re-evaluate the quota and November, but did not sup- revenue assessment level to ensure port the change to be “until further INNOVATIVE PRODUCTS, CUSTOMER-DRIVEN SOLUTIONS. the rate is set to a level where rev- notice” because market conditions enue collection roughly equals pre- that exist today may not exist mium payments. beyond 2020. Under the Quota Implementa- Lanco Dairy Farms Co-op, a tion Plan, all Grade A California cooperative handler and operator dairy producers who ship milk of a pool supply plant, supported to a California plant are being the reduction to 10 percent for assessed to administer the stand- the months of September, Octo- along quota program and to fund ber, and November, noting that quota premiums. The current pro- the continued decline in Class I gram administration assessment consumption and consolidation is $0.0030 per hundredweight of of pool distributing plants creates assessable milk. challenges for Northeast order Under the old California State handlers. Order, the California quota pro- Mohawk Valley Cooperative gram was a state-administered supported a 10 percent shipping Engineering | Fabrication | Controls | Installation program that entitled the quota percentage for the months of Sep- holder to an additional $0.195 per tember, October, and November, pound of SNF over the CSO over- and also suggested an elimina- www.APT-INC.com base price. The money to pay the tion of the shipping requirement [email protected] | 877.230.5060 | An Employee Owned Company quota premium was deducted from entirely. National Farmers Orga- the CSO marketwide pool before nization supported a reduction for the overbase price was calculated. the months of September, Octo- For more information, visit www.APT-Inc.com Page 4 CHEESE REPORTER July 19, 2019

welfare, milk production automa- The Dairy Research Cluster 3 Canada’s tion, and forage breeding. builds on the success of the Dairy Government Invests The cluster will also support the Research Cluster 1 and 2 (2010- from our development of management prac- 2018) to stimulate productivity, $11.4 Million In tices and tools to reduce on-farm sustainability and profitability on Dairy Research economic losses from production- farms, and to improve knowledge archives limiting diseases. Through this on the health benefits of milk and Cluster, Led By DFC investment, the dairy sector will dairy products, DFC noted. 50 YEARS AGO Saskatoon, Saskatchewan— also better understand the impact The $16.5 million joint indus- July 18, 1969: Chicago—Asso- Marie-Claude Bibeau, Canada’s of microbes on milk, dairy prod- try and government commitments ciated Milk Producers, Inc. was agriculture minister, announced uct composition and quality, and to the Dairy Research Cluster 3 adopted this week as the new Tuesday an investment of $11.4 examine the use of alternative include the contributions of major name of the regional milk mar- million to the Dairy Research tools and practices to antimicro- partners such as Lactanet Canada keting merger group which dairy Cluster, led by Dairy Farmers of bial use. and Novalait. co-ops from Lake Superior to the Canada (DFC). “The investment provided “Innovation on Canadian dairy Gulf of Mexico have been devel- With investment from industry, to the Dairy Research Cluster is farms requires cutting-edge knowl- oping as American Milk Pro- the total investment in this clus- essential to enable strong, robust edge of world-class research. Nov- ducers, Inc. Robert Alexander, ter will be $16.5 million. it was and evidence-based research mate- alait is proud to be a partner of president of Twin City Milk Pro- announced Tuesday. rial that ultimately helps dairy the Dairy Research Cluster 3 to ducers, St. Paul, MN, was elected The Dairy Research Cluster farmers increase efficiency of their develop this knowledge,” com- AMPI president. aims to foster public trust, drive farm practices, particularly milk mented Charles Langlois, presi- innovation and stimulate eco- production, animal welfare and dent of Novalait. “This important Washington—The US Senate nomic growth of the Canadian sustainability,” said Pierre Lam- investment by Novalait in the Select Committee on Nutrition dairy sector. pron, DFC’s president. “Results of quality of milk will benefit the & Human Needs this week began The cluster will support research these research projects will also entire dairy sector.” a series of hearings intended to in areas of milk safety and qual- contribute to expand knowledge A list of all the DRC 3 projects examine the nutrition contribu- ity, environmental sustainability, about the health benefits of dairy and investments can be found at tions or lack thereof from the pri- bovine genetics, animal health and products.” www.dairyresearch.ca. vate food sector. 25 YEARS AGO DairyAmerica’s SMP and Contract 5, $2,492 per ton, up per ton, up 1.6 percent; Contract July 15, 1994: Arlington, (Continued from p. 1) 2.8 percent. 3, $5,542 per ton, up 2 percent; VA—If the US doesn’t use the Whole milk powder: The aver- Contract 4, $5,532 per ton, up 2.2 Dairy Export Incentive Program available for sweet whey powder age winning price was $3,074 per percent; Contract 5, $5,492 per aggressively in the years ahead, and lactose. ton ($1.39 per pound), up 3.6 ton, up 1.8 percent; and Contract it will not be able to compete Results from this week’s Global percent. Average winning prices 6, $5,527 per ton. on the world market, and this Dairy Trade price index auction, were: Contract 1, $3,170 per ton, Rennet casein: The average will have serious adverse conse- with comparisons to the auction up 0.8 percent; Contract 2, $3,110 winning price was $7,044 per ton quences for the US dairy sector, held two weeks ago, were as fol- per ton, up 4.2 percent; Contract ($3.19 per pound), down 3.4 per- a new study from the National lows: 3, $3,028 per ton, up 2.6 percent; cent. Average winning prices were: Dairy Board reported this week. Cheddar cheese: The average Contract 4, $3,070 per ton, up 4 Contract 1, $8,330 per ton, up 3.9 winning price was $3,869 per met- percent; and Contract 5, $3,063 percent; Contract 2, $6,775 per Elk Grove Village, IL—Two ric ton ($1.75 per pound), up 3.3 per ton, up 4.1 percent. ton, down 9.2 percent; Contract 3, new dairy market opportunities percent. Average winning prices Butter: The average winning $6,785 per ton, down 3.1 percent; – iron-fortified Cheddar and a were: Contract 2 (September), price was $4,406 per ton ($2.00 and Contract 4, $6,990 per ton, up new age beverage – were pro- $3,945 per ton, up 3.5 percent; per pound), up 1.7 percent. Aver- 3.9 percent. moted here this week at the IFT Contract 3 (October), $3,844 age winning prices were: Contract Food Expo. Iron-fortified cheese DairyAmerica’s SMP Relaunch per ton, up 1 percent; Contract 1, $4,480 per ton, up 5.5 percent; offers a “niche” market opportu- This week’s GDT auction marked 4 (November), $3,800 per ton, Contract 2, $4,395 per ton, up 2.6 nity to address a real nutritional up 4.1 percent; and Contract 5 percent; Contract 3, $4,422 per the relaunching by DairyAmerica problem, while the new age (December), $4,097 per ton, up ton, up 2.5 percent; Contract 4, of skim milk powder. DairyAmer- beverage contains both Grade 8.8 percent. $4,392 per ton, down 0.5 percent; ica, a federated marketing company, A milk and juice that is fat free currently represents four major Skim milk powder: The aver- Contract 5, $4,415 per ton, up 0.9 and contains 100 percent of the US dairy cooperatives: California age winning price was $2,505 per percent; and Contract 6 (January RDI of vitamin C. Dairies Inc., Agri-Mark, O-AT-KA ton ($1.14 per pound), up 3.8 per- 2019), $4,410 per ton. Milk Producers, and United Dairy- cent. Average winning prices were: Anhydrous milkfat: The aver- 10 YEARS AGO men of Arizona. DairyAmerica had Contract 1 (August), $2,245 per age winning price was $5,523 per July 17, 2009: Galena, IL—US ton; Contract 2, $2,536 per ton, ton ($2.50 per pound), up 1.7 per- previously participated in the GDT dairy producers are in a “significant up 6.4 percent; Contract 3, $2,509 cent. Average winning prices were: auctions from 2011 to 2014. mess” right now, with some pro- per ton, up 2.3 percent; Contract Contract 1, $5,550 per ton, down Global Dairy Trade publishes ducers on the East Coast growing 4, $2,503 per ton, up 3.9 percent; 1.9 percent; Contract 2, $5,510 individual sellers’ winning prices their own feed and maybe losing for products that sellers have opted “only” $1.00 per hundredweight, to display. while producers in California are For skim milk powder in this losing $6.00 per hundredweight, week’s auction, GDT published according to DFA’s Keith Gomes. Cheese individual sellers’ winning prices Earlier this month, Gomes talked for Arla, Amul, Fonterra and Pol- to a California dairymen who ish Dairy (which didn’t sell any milks 2,400 cows and is losing over Mould SMP), but not for DairyAmerica. $300,000 every month. GDT also publishes average prices per region; those regions Burlington, VT—US Sen. Ber- Rotators include Asia, Eastern Europe, nie Sanders of Vermont has asked Western Europe, North America, the antitrust division of the US Ideal for Blue, Muenster, Brick or any cheese requires rotation. and Oceania. The North America, Department of Justice to take a Kusel Cheese Mould Rotators are engineered for labor-saving production. USA SMP medium heat average “very serious look” at milk pro- price includes DairyAmerica SMP cessors – particularly Dean Foods, www.kuselequipment.com medium heat enhanced. Average which Sanders said dominates [email protected] prices for that product were: Con- 920-261-4112-phone some two-thirds of the New Eng- tract 1, $2,245 per ton; and Con- land milk market. For more information, visit www.kuselequipment.com tract 2, $2,310 per ton. July 19, 2019 CHEESE REPORTER Page 5

Plant-Based Foods match their changing values and plant-based products with names is still ticking. We are not going (Continued from p. 1) desire for more sustainable options. that include the names of dairy away.” “This growth will continue as foods. “Plant-based foods are a growth more companies bring next-gener- The agency received over engine, significantly outpacing ation innovations to market that 13,000 comments. “Dairy farmers have overall grocery sales,” said Julie really deliver on the most impor- “FDA’s longstanding inaction never called for bans on tant driver of consumer choice: on enforcing its own standards of Emmett, PBFA senior director of fake-food competitors, retail partnerships. taste,” Bushnell added. identity is perpetuating the mar- “We are now at the tipping point Meanwhile, the National Milk keting of products using milk and nor have they called with the rapid expansion of plant- Producers Federation (NMPF) on dairy terms when those products for market censorship. based foods across the entire store, Wednesday marked the one-year don’t match the nutritional con- They do want the FDA so it is critical for retailers to con- anniversary of then-Food and Drug tent of the dairy products they Administration (FDA) Commis- are imitating,” said Jim Mulhern, to enforce its own rules tinue to respond to this demand by defining what a product offering more variety and maximiz- sioner Scott Gottlieb’s observa- NMPF’s president and CEO. ing shelf space to further grow total tion that almonds don’t lactate by “Dairy farmers have never is and what it isn’t...” store sales,” Emmett added. reminding the agency that it still called for bans on fake-food com- Jim Mulhern, NMPF Among other products, the has not resolved the issue and that petitors, nor have they called for plant-based meat category is worth consumers who heeded the agen- market censorship,” Mulhern con- more than $800 million, with sales cy’s call for comments on the issue tinued. “They do want the FDA up 10 percent in the past year, the deserve answers. to enforce its own rules defin- In February, NMPF filed a peti- PBFA reported. Last September, FDA invited ing what a product is and what tion with FDA outlining what it “This is just the beginning of a interested parties to provide infor- it isn’t, in keeping with similar said is a potential labeling solution massive growth period for plant- mation on a number of specific standards enforced in other coun- to the use of dairy terms on non- based foods,” said Caroline Bush- topics related to the labeling of tries around the globe. The clock dairy alternatives. nell, GFI associate director of corporate engagement. “Consumer appetite for plant-based foods is surging as consumers increasingly make the switch to foods that

Almost One-Fourth Of British Consumers Use Plant-Based Milk St. George, UT Alternatives: Mintel Now Open London, UK—Almost a quarter (23 percent) of British consumers used plant-based milk alternatives in the three months to February 2019, up from 19 percent in 2018, according to research from Mintel. Driving the plant-based market, some 26 percent of women con- sume plant-based milk alternatives and as many as a third of 16- to 24-year-olds opt for these varieties. Growth of milk alternatives is largely fueled by category entrants such as oat, coconut and almond variants, all of which have grown New, Complete Warehousing & in visibility as well as availability. But while plant-based milk alternatives continue to grow in popularity they accounted for just Transportation Services 4 percent of volume sales and 8 Our new 95,000 square foot warehouse in St. George, UT, percent of value sales of white milk in 2018. is centrally located between California, Clovis, NM, and Jerome ID, Further, their use in cooking and features: and hot drinks remains limited, Mintel noted. Only 25 percent of  60,000 square feet of refrigerated storage plant-based milk alternatives con-  20,000 square feet of -20 degree freezer space sumers use these products in cook-  10,000 square feet of 0 degree freezer space ing, compared to 42 percent for standard cow’s milk users. St. George is our newest of 13 warehouses and A fifth (21 percent) of British like our facilities offers: consumers believe nut milks add more flavor to drinks than cow’s  Over 200 trucks on the road with 500 trailers milk, Mintel noted.  AIB Certified Warehousing. Highlighting that there are more  Sanitary high cube food grade distribution center. opportunities for further growth in  Computerized temperature and humidity alarm. Bob Smith  Pallet racking or bulk storage. the plant-based milk alternatives 608-435-6561 x 229 trend, 65 percent of plant-based  Variable Temperature Aging Rooms. milk users would welcome advice  Cloud-based Inventory Management [email protected] on how to use plant-based milk/ cream alternatives in cooking/bak- Locations in: ing, with 24 percent of non-users also interested in such advice, La Crosse, Wilton & Sparta, WI, Tomah, WI; Kendall, Ontario; St. George, UT Mintel reported. For more information, visit www.martinmilk.com Page 6 CHEESE REPORTER July 19, 2019

Third place: Ron Bechtolt, Klon- Flavored Natural Cheese Babcock Hall’s Gary Grossen Tops Green Co. dike Cheese, 99.60 First place: Matt Henze, Decatur Fair Cheese Contest With Dutchkäse Entry Dairy, Brodhead, WI, Dill Havarti, Havarti 99.875 Monroe, WI—Gary Grossen of Roelli House Select Cheddar, First place: Ron Bechtolt, Klond- Second place: Amanda Gutzmer, Babcock Hall Dairy at the Uni- 99.50 ike Cheese, 99475 Klondike Cheese, Mediterranean versity of Wisconsin-Madison was Third place: Maple Leaf Cheese- Second place winner: Decatur Herb Feta, 99.85 awarded the Grand Champion makers, Inc., Monroe, WI, 98.40 Dairy, 99.30 Third place: Steve Webster, Klon- title here this week at the Green Third place: Matt Henze, Decatur dike Cheese, Peppercorn Feta, Colby, Monterey Jack County Fair Cheese Contest with Dairy, 99.20 99.825 a Dutchkäse entry. First place: Gary Grossen, UW Grossen’s winning cheese earned Babcock Hall Dairy, Dutchkäse, Latin American Style Smear Ripened a score of 99.60 in the Colby/Mon- 99.60 First place: Steve Stettler, Decatur First place: Emmi Roth USA, terey Jack category. Second: Jerome Soddy, Shullsburg Dairy, Asadero, 99.55 Monroe, Pavino, 99.65 The judging team for the con- Creamery, Colby, 99.575 Second place: Dan Reed, Chula Second place: Emmi Roth USA, test included; Matt Zimbric, Third place: Jerome Soddy, Shulls- Vista Cheese Co., Browntown, Grand Cru Reserve, 99.55 Saputo; Sandy Toney, Masters Gal- burg Creamery, Colby Jack, 99.150 WI, Oaxaca Balls, 99.45 Third place: Emmi Roth USA, lery Foods; Gina Mode, Wisconsin Swiss Style Third place: John Randy Pitman, Grand Cru Surchoix, 99.475 Center for Dairy Research (CDR); First place: Chalet Cheese Co-op, Mill Creek Cheese, Arena, WI, and Randy Swenson, Wisconsin Monroe, Baby Swiss Block, 99.00 Queso Blanco, 99.30 Smoked Cheese Aging & Grading Cheese, Inc. Second place: Deppeler Cheese, First place: Jerome Soddy, Shulls- First, second and third place Chalet Cheese Co-op, Baby Swiss Fresh Cheese Curd burg Cheese, Smoked Swedish Dry entries in each of the 13 classes Wheel, 98.90 First place: Matt Henze, Decatur Jack, 99.60 will be auctioned off here Sunday, Third: Jamie Fahrney, Chalet Dairy, White Curd, 99.85 Second place: Steve Stettler, July 21 at 1 p.m. in the Hospital- Cheese, Baby Swiss Wheel, 98.25 Second place: Decatur Dairy, Decatur Dairy, Smoked Havarti, ity Tent at the Green County Fair- Cheddar Curd, 99.80 99.35 grounds. That’s the final day of the Brick Third place: Steve Stettler, Deca- Third place winner: Maple Leaf Green County Fair. First place: Matt Henze, Decatur tur Dairy, White Curd, 99.75 Cheesemakers, Smoked Cheddar, All auction proceeds go to char- Dairy, Inc., Brodhead, WI, 99.850 98.80 itable causes determined by the Second place: Steve Stettler, Open Class Foreign Type Cheesemakers Asso- Decatur Dairy, 99.80 First place winner: Ben Work- Pepper Flavored Natural Cheese ciation’s board of directors. Third place: Steve Buholzer, man, Edelweiss Creamery, Mon- First place winner: Matt Erdley, The top three winners in each Klondike Cheese, Inc., Monroe, ticello, WI, Belaire, Port Salute Klondike Cheese, Sweet Heat class are: WI, 99.75 Style, 99.55 Feta, 99.70 Cheddar Second place: Gary Grossen, Second place: Maple Leaf Chee- First place: Gary Grossen, UW Muenster UW Babcock Hall Dairy, Farmer’s semakers, Monroe, Chipotle Jack, Babcock Hall Dairy, Madison, First place: Matt Henze, Decatur Cheese, 99.40 99.45 99.70 Dairy, 99.70 Third place: Eric Schmid, Third place: Casey Berget, Chula Second place: Chris Roelli, Roelli Second place: Decatur Dairy, Brunkow Cheese, Darlington, WI, Vista Cheese Co., Jalapeno Chi- Cheese Company, Shullsburg, Brodhead, 99.65 Original Brun-uusto, 99.35 huahua, 99.425.

CA Federal Order A total of 385.9 million pounds May. Only the Upper Midwest pool draw is lower and they elect (Continued from p. 1) of milk was pooled in Class I on order had a lower Class II utiliza- to pool more milk when their pool the California order in June, down tion percentage, at 1.1 percent. draw is higher. zation percentage in June was 58 84.4 million pounds from May and In June, for example, the Class percent, up from 30.8 percent in the lowest volume of milk pooled Prices And Depooling IV price was just 40 cents per hun- May and the highest Class III uti- in Class I in the order’s eight- California’s statistical uniform dredweight below the statistical lization percentage since March’s month history. The previous low, price in June was $17.23 per hun- uniform price, and the volume of 62.7 percent. 420.5 million pounds, was in Feb- dredweight, up 30 cents from May milk pooled in Class IV was the Among the 11 federal orders ruary. and the highest statistical uniform lowest since March, when the in June, the volume of Class III Among all 11 federal orders, the price in the order’s history. The uniform price was 32 cents higher milk in the California federal order volume of milk pooled in Class I producer price differential for June than the Class IV price. trailed only the Upper Midwest on the California order in June was 96 cents per hundred, up 41 April and May were the only two order’s 2.918 billion pounds, and trailed two orders: the Northeast cents from May and the highest months in which more than 1 bil- its Class III utilization percentage order, at 628.2 million pounds; and PPD for the California order since lion pounds of milk was pooled in also trailed only the Upper Mid- the Mideast order, at 497.5 million March’s 99 cents per hundred. Class IV, and in those two months west order’s 89.8 percent. pounds. Class prices on the Califor- the Class IV price was lower than A total of 486.4 million pounds California’s Class I utilization nia order in June were as follows: the uniform price by 70 cents and of milk was pooled in Class IV in percentage in June was 16.3 per- Class I, $19.17 per hundred; Class 64 cents, respectively. June, down 688.8 million pounds cent, down from 18.2 percent in II, $17.30 per hundred; Class III, Also in June, the Class III price from May and the lowest volume May and the lowest Class I utiliza- $16.27 per hundred; and Class IV, was 96 cents below the uniform of milk pooled since March, when tion percentage in the order’s his- $16.83 per hundred. price, and the volume of milk Class IV volume totaled 276.1 mil- tory. The previous low was in May. In the economic impact analy- pooled in Class III was the high- lion pounds. The California order’s California’s June Class I utiliza- sis of its final decision to estab- est since March, when the uniform Class IV utilization percentage in tion percentage was the second- lish a California federal order, the price was 99 cents higher than the June was 20.5 percent, down from lowest among the 11 federal orders, US Department of Agriculture Class III price. 45.5 percent in May and the low- trailing only the Upper Midwest’s (USDA) conducted a pooling anal- In December 2018, the Class est Class III utilization percentage 6.1 percent. ysis to estimate monthly volumes III milk price was $1.13 below since March’s 12.2 percent. A total of 123.9 million pounds of milk-not-pooled using data from the uniform price, and the vol- Among the 11 federal orders in of milk was pooled in Class II on the Upper Midwest order, which ume of milk pooled was 1.41 bil- June, the volume of milk pooled in the California order in June, down has pooling provisions similar to lion pounds, the second-highest Class IV on the California order 19.9 million pounds from May. the California order. volume behind only March’s 1.42 led all other orders; the closest That volume trailed three other USDA’s milk pooling analysis billion pounds. to California was the Northeast orders: the Northeast, at 531.3 found that manufacturers in the April and May were the only two order, at 442.6 million pounds. million pounds; the Mideast, at Upper Midwest chose to pool less months in which less than 1 bil- Two federal orders had a Class IV 287 million pounds; and the Cen- Class II, III, or IV milk when the lion pounds of milk was pooled in utilization percentage higher than tral, at 124.4 million pounds. respective price was high relative Class III, and in those two months California’s in June: the Arizona California’s Class II utilization to the uniform price. the Class III price was lower than order, at 35.9 percent; and the percentage in June was 5.2 per- That is, handlers collectively the uniform price by 46 cents and Pacific Northwest order, at 35.8. cent, down from 5.6 percent in elect to pool less milk when their 55 cents, respectively. July 19, 2019 CHEESE REPORTER Page 7

Cheese Exports Due to a lowered milk produc- pounds, of which 74 percent origi- SMP to China totaled 46.5 million (Continued from p. 1) tion forecast, the EU butter produc- nates from Ireland. While there is pounds while this year they only tion forecast for 2019 is trimmed a tariff-rate quota (six cents per total 4.4 million pounds through pound) for nearly 15.4 million May. Shipments to Mexico are lag- for cheese between 2014 and 2018 back 2 percent to 2.36 million pounds, the bulk of imported but- ging last year’s pace but its annual had been growing at an annual rate tons, about half a percent higher ter is being imported over-quota imports of SMP are forecast to of 13 percent to reach 108,000 tons than in 2018. Domestic consump- despite facing a substantial import grow by 2 percent this year which (238 million pounds) last year. tion remains relatively strong and duty of $1,541/ton (70 cents per are expected to lift US exports in New Zealand has a “command- as a result, lower available export- pound), FAS noted. the second half of this year. ing lead” in this market, supplying able supplies are expected to lead Last year, the US supplied on average almost 50 percent of to a decline in exports. SMP Exports: US Down, EU Up nearly 97 percent of the total SMP China’s cheese imports over this For 2019, the EU butter export EU exports of skim milk pow- imported by Mexico. Further, US period, the report said. forecast is cut by 6 percent to 342 der are surging, with shipments FOB prices are on par with EU Despite facing retaliatory import million pounds. Although ship- through April up over one-third duties in the key Mexican market, ments through April to the US in comparison to the same period export prices and are expected to US cheese exports through May were up by a third, these have been last year, FAS noted. become increasingly competitive exceeded expectations, surpass- offset by lower exports to Saudi As a result, the 2019 export in the coming months. ing last year’s pace by 7 percent. Arabia and China. For the bal- forecast is raised by 15 percent to New Zealand exports of SMP Shipments to such key markets ance of the year, following histori- 2.1 billion pounds. While SMP have been running ahead of last as South Korea and Japan have cal patterns, monthly shipments production is expected to grow by year, particularly as shipments to posted strong performances, the are expected to taper down. only 1 percent in 2019, a major China have accelerated – up 14 per- report said. US domestic butter prices factor contributing to the outflow cent through May. With the void New Zealand continues to dom- (CME Group) have been climbing of SMP has been the availability left in the Chinese import market inate export markets for butterfat, this year from about $4,960 per ton of intervention stocks. These stood by the drop in US shipments, EU accounting for about 55 percent in January to slightly over $5,300 at 175,000 tons at the end of 2018, and New Zealand sales of SMP of total export trade in 2018, the per ton in early July. By contrast, and by the end of May totaled less to this market have expanded. report noted. For 2019, the pro- Oceania prices have been declin- than 1,000 tons. Although SMP output is expected duction forecast for butterfat is ing steadily over this period and In 2018, about one-third of the to slow this year, the export fore- revised up slightly as milk output were around $4,270 per ton mid- EU’s SMP was exported to Algeria, cast is revised higher by 8 percent in the second half of the year is point FOB in early July. EU prices, China, and Indonesia. This pat- to 410,000 tons supported in part expected to grow. despite an early spring rally, have tern will likely be repeated in 2019, by a drawdown in stocks. New Zealand butter shipments also declined to these levels. as shipments through April have Whole milk powder production through May were running some This effectively puts US butter grown significantly to China and in China is expected to decline 12 percent ahead of last year’s at a competitive disadvantage on Indonesia, while Algeria remains a significantly this year as domesti- pace. However, the monthly rate world markets, FAS pointed out. principal destination. There have, cally produced WMP is not com- of shipments has recently been This situation is expected to persist however, been major gains to the petitive with imported WMP. It slowing, FAS reported. The export for the remainder of the year and Philippines, Malaysia, and Viet- is estimated that WMP produced forecast is revised up by 3 percent the 2019 US butterfat export fore- nam which were important desti- in China is around $1,500 per ton which represents an expansion of cast has been cut by 40 percent to nations for US SMP in 2018. costlier to produce in comparison 5 percent. Despite higher butter 59.5 million pounds. This is also a The US export forecast for SMP to imported product. production, stocks are projected to 40 percent drop from export levels is adjusted down 1 percent to 1.5 As a result, the WMP output be drawn down to support exports. in 2018. billion pounds, or about 4 percent forecast is revised down by 28 per- China has been a leading des- US butterfat imports continue below 2018’s record exports. Ship- cent while the import forecast is tination for New Zealand, with to grow, rising from 44 million ments through May werre down 13 revised up by 10 percent to 1.2 exports of butter growing at an pounds in 2013 to 130 million percent year-over-year and in abso- billion pounds. Imports through annual average rate of 9 percent pounds in 2018. The US import lute terms, the biggest losses over May were up by nearly 30 percent; between 2014 and 2018. This forecast is raised by 50 percent this period have been to China however, historically after an ini- year, however, shipments to China to 150 million pounds, or 15 per- (down 10,300 tons), Pakistan tial surge monthly imports tend through May were down by one- cent higher than 2018. This rise is (down 9,390 tons), and Malaysia to taper off rapidly. These early third, signaling that consumption largely fueled by imports of high (down 6,515 tons). year purchases are primarily due in that market may be stalling. To (82 percent) fat butter from the Currently, US exporters face a to importers competing to bring in some extent, this is being offset by EU, principally Ireland. prohibitive 35 percent import tar- product from New Zealand under expanded shipments to such mar- US butter imports through iff in China due to the trade dis- the New Zealand-China FTA duty kets as the Philippines and Mexico. May currently stand at 33 million pute. In 2018, US shipments of free TRQ of 358 million pounds.

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IDFA’s Michael Dykes, Haydn Shaw To Headline IMPA Speaker Program We look at cheese differently. Sun Valley, ID—The Idaho Milk A wine and cheese social will Processors Association (IMPA) take place Thursday evening at has released program details for its Trail Creek Cabin, followed by 93rd annual meeting here Aug. 8-9 IMPA’s Cheese Contest awards at the Sun Valley Resort. and auction. Registration opens Aug. 7, and A special invitation-only, stu- the meeting kicks off Thursday dent dinner/meet and greet will ...because we don’t just morning with opening remarks by also be held Thursday night. see cheese, we see the IMPA president Daragh Maccabee. Friday’s schedule of events begins This year’s keynote address will with the IMPA business meeting whole picture. 1.866.404.4545 www.devilletechnologies.com be delivered by Michael Dykes, and company profile highlighting president and CEO of the Inter- Beehive Cheese of Unitah, UT. CheeseTournaments Reporter Ad.indd and 1 outings will tion Awards, and the2018-01-03 scholarship/ 11:52 PM national Dairy Foods Association Brian Wilson will lead a presen- kick off at noon: fishing led by auction report delivered by Julie (IDFA), followed by motivational tation on the new inductee into Don Jones, $25 per person; hik- Winans. speaker Haydn Shaw. the Hall of Fame, followed by a ing led by Daragh Maccabee and Cost to attend the conference is After a short break, Ami Patel panel discussion on dairy protein Drew Adams, $25 per person; golf $325 for IMPA members, $600 for director of product strategy for and dairy sustainability featur- tournament led by Jeff McClary non-members and $200 for spouse/ ripe.io, will discuss blockchain and ing Véronique LaGrange, strate- and Alexis Reese, $200 per per- guest. This year, the Idaho Milk its relevance to the dairy industry. gic development director for the son; trap and sporting clays tour- Processors Association will offer a IMPA will host its 12th New American Dairy Products Insti- nament led by Jay Astle, $125 per reduced registration fee of $200 for Product Development Competi- tute (ADPI); Frank Mitloehner, person; and white water rafting led four individuals from each univer- tion, chaired by Alan Reed. The professor and air quality specialist by Russ DeKruyf and Derik Robin- sity. contest will feature teams from at the University of California- son, $110 per person. The registration deadline is July Brigham Young, Utah State, Wash- Davis; and Michael Parrella, dean The annual IMPA banquet will 26. ington State University/ Univer- of the College of Agricultural & be held Friday night, featuring the For complete details or to sign sity of Idaho, South Dakota State Life Sciences at the University of new Hall of Fame Inductee, win- up online, visit www.impa.us/con- University, and BYU-Idaho. Idaho. ners of the New Product Innova- ference-information.

Dave Robbins, Longtime Association Attractive financing and lease Food Co-Packing rates are available for this built- Contributor, Receives WDPA Award Expansion to-suit facility, SSEGI and NFS noted. The park will incorporate Opportunity Available various business support services to tenants, including shared logistics, In Chicagoland Area warehousing and other costs. Local Chicago—The South Subur- partners will design and deliver ban Economic Growth Initiative training programs targeted at food (SSEGI) has announced a food co- processing. packing expansion opportunity in “The south suburbs are primed Chicago’s south suburbs. for growth,” said Kristi DeLau- SSEGI has partnered with New rentiis, executive director of the Food Strategies (NFS) to design South Suburban Mayors and Man- and launch a food processing agers Association, a lead partner innovation park, leveraging NFS’s in SSEGI. “The area is coming experience working with early- together, pooling our resources and stage and mid-size food companies. collaborating to support strategic The development group is seeking development.” an anchor tenant for this multi-use For more details, contact John facility that is located near a skilled Geocaris, at jgeocaris@newfoodstrat- talent pool with what is described egies.com; or Matt Schuneman, at as excellent transportation access. [email protected].

Lead Licensed Cheesemaker In the photo above are, left to right: Trevor Wuethrich of Grassland Dairy, WDPA’s current president; Dave Robbins; and Brad Legreid, WDPA’s executive director. Door Artisan Cheese Company, LLC, is located in the heart of Door County Wiscon- sin in beautiful Egg Harbor, WI. We are looking to add a Licensed Cheesemaker to Egg Harbor, WI—Dave Robbins the HACCP Implementation our team. Our company is rapidly becoming recognized for producing Champion- of Dean Foods Company was pre- Committee. ship quality Artisan Cheeses. In our two years of operation we have been awarded sented with the Wisconsin Dairy Robbins has also been active 4 major awards for the quality of our diverse Artisan cheese varieties. Products Association’s (WDPA) in WDPA for over 15 years, serv- With a new state of the art production facility, including three aging caves, we are Presidents Award here Monday ing on the WDPA board of direc- able to craft the most unique Artisan cheeses in the Industry. during the 2019 WDPA Dairy tors since 2004 and as WDPA We are seeking to hire a Licensed Cheesemaker to produce and oversee all Cheese Symposium. president in 2011. He also vol- Production Activities. The candidate must have the following: Robbins has worked for Dean unteers hundreds of hours every n 5 years as Licensed Cheesemaker Foods for over 35 years, and his year coordinating all aspects n HTST Operators License n Working knowledge of HACCP and Food Safety Plans industry activities are numerous of WDPA’s World Dairy Expo n Experience in leading a small cheesemaking team in the manufacture of and varied. Championship Dairy Product our cheeses. On the national level, Dave Contest. We offer a competitive salary, and a beneﬁt package that includes Major Medical Robbins has been heavily Tony Anderson of Swiss Valley Health Insurance; employee supported Dental Plan; vacation; and Performance bo- involved in the National Con- Farms, was the 2018 recipient. nus plan. If interested in this dream opportunity, please submit resume to: ference on Interstate Milk Ship- Recipients of the WDPA Pres- Michael C. Brennenstuhl ments (NCIMS). ident Award are chosen based on Door Artisan Cheese Company, LLC He has participated in the their contributions to the Wis- 8103 N Hwy 42, Egg Harbor, WI 54209 NCIMS for multiple decades and consin dairy industry and to the Email: [email protected] currently serves on Council 2 and WDPA. Cell: (920) 883-5340 July 19, 2019 CHEESE REPORTER Page 9

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Call 261-8890 or FAX: (920) 261-6357; or by sitions-mergers-other. Contact Jim email: [email protected]. www.gmigaskets.com GREAT LAKES SEPARATORS at at 608-835-7705; or by email at jim- (920) 863-3306 or e-mail drlambert@ [email protected] dialez.net. General Manager FOR SALE: 1500 and 1250 cream 9. Positions Wanted Production Supervisor Plainview Milk EstablishedProducts in 1899Cooperative as dairy cooperative has aservicing 120-year local patrons, tradition Plainview in Milkthe tanks. Like New. (800) 558-0112. (262) dairy industry withProducts over is located 175+ 1.5 patrons hrs from the in Twin Minnesota Cities of Minneapolis/ and Wisconsin.St. Paul and 30 min The- 10. Cheese & Dairy Products utes from Rochester in beautiful SE Minnesota. 473-3530. cooperative completed a merger in 2018 and now operates two We are looking for an experienced supervisor for our newly remodeled facilities supplying fluid milk into retail/food service markets and bulk dairy SEPARATOR NEEDS - Before you buy KEYS MANUFACTURING: Dehydrators and automated dryer and evaporators to lead a team of production as- of scrap cheese for the animal feed ingredients for furthersociates processing.and excel in our mission. The Production Supervisor will assist in a separator, give Great Lakes a call. creating an atmosphere where people are: Committed to what we want industry. Contact us for your scrap at TOP QUALITY, reconditioned machines We are seekingto qualified become (our General vision), able Manager to execute candidates. our mission & guided This position by our core will (217) 465-4001 or email keysmfg@aol. report directly tovalues. the Board of Directors with accountability for financial at the lowest prices. Call Dave Lam- com. conditions, businessThis position development, will oversee the staff operation leadership of the Dryer and and producing Evaporator plant, safe, while ensuring that all measures for Food Safety, Quality, Regulatory Stan- bert, Great Lakes Separators at (920) high quality products. This position will work closely with customers, AGED CHEDDAR FOR SALE: 4 year dards and Good Manufacturing Practices are followed. 863-3306; [email protected] for vendors, member owners and employees. old Sharp White Cheddar 40# blocks. The successful candidate will have excellent leadership, planning, organi- more information. zational, problem solving and interpersonal communication skills. This posi- Produced August-December 2014 in A Bachelor’s Degreetion requires in Dairy a Bachelor’s or Food degree Science or equivalent is preferred; in Dairy Science 5 to or10 related years Wisconsin. Available in full truckload or of experience infield managing and at andleast leading 3-5 years’ teams experience in a similarin a rolefood i s manufacturing/required. dairy 2. Equipment Wanted environment. pallet quantities in Wisconsin. Please Plainview Milk We Products will offer the Cooperative successful candidate offers a a competitive competitive wage, salaryhealth insur with- WANTED TO BUY: Westfalia or Alfa- call Zach at 847-573-4982 or email relocation bonus,ance Health, benefits Dental, and paid Life vacation and time.Disability. Laval separators. Large or small. Old or him at [email protected] with Qualified CandidatesFor consideration, please pleasesubmit email, resume fax orand mail salarya cover requirement letter, resumes andto: salary requirements to: new. Top dollar paid. Call Great Lakes inquiries. [email protected] Separators at (920) 863-3306 or email Plainview Milk Products 11. Consultants Attn: Human ResourcesAttn: Human Resources [email protected] PLAINVIEW MILK130 PRODUCTS2nd St. SW, Plainview, COOP MN 55964 130 2nd StreetFax SW, 507-534-3992 Plainview, MN 55964 E-Mail: [email protected] 507-534-3872 Plant Manager - Malone, WI

Founded in 1938, Agropur is a top 20 global dairy producer with sales of $6.7 Come join our team! Mosaic Meadows is bringing together the finest artisanal billion in 2018. As North America’s largest whey protein manufacturer and creameries in the world. Our products have won top honors at the U.S. Cheese producer of over 800MM lbs of cheese per year, Agropur’s 11 US-based, SQF Championship, World Cheese Championship, Good Food Awards and more… Certified plants are behind some of the most prominent food, beverage and nutrition brands in the industry. “Better Dairy. Better World.” and we’re just getting started! We are in growth mode and expanding our processing capabilities. Our cheesemakers benefit from an experienced sales, marketing and service team as well as a coast-to-coast broker-and-distribution network. Join the best and make us even better.

Overall responsibilities: Manage all Chevre operations and Hard Cheese make production, product safety, quality, consistency and standardizing production process. Direct safety program, production efficiency and assist with expansion projects. Meet customer expectations and sales volumes. Now Preferred experience: Experience in Chevre operations and Hard Cheese make production preferred. Experience leading and supervising others. Hiring Knowledge of cheese affinage process, food safety controls and sanitation Cheese Maker | Jerome, ID

programs. Familiar with FMO/FDA compliance and State and Federal The Cheese Maker is responsible for the regulations. Working knowledge of lean production, shrink reduction, and Cheese Make process to include recipe pasteurization concepts and regulatory requirements. management and starter processes. This manager position will oversee multiple shift If interested, please send resumes to: supervisors and directs all cheese making decisions made around the clock. At our Mosaic Meadows, LLC Jerome facility we produce mozzarella, Attn: Human Resources cheddar and reduced fat cheeses and run N3569 Vanden Bosch Rd. roughly 650,000 pounds of cheese per day. Kaukauna, WI 54130 Or apply online at: www.indeed.com by searching Plant Manager in Malone, WI Interested in applying? Apply online at www.agropurcareers.us Mosaic Meadows, LLC and its subsidiaries will consider applicants for any position Or submit your resume to [email protected] without regard to any applicant’s race, color, religion, creed, gender, national origin, age, disability, marital or veteran status, sexual orientation, or any other legally protected status. AA/EOE Minority/ Female/Disability /Veteran/Sexual Orientation/Gender Identity

Page 10 CHEESE REPORTER July 19, 2019

Federal Order Class 1 Minimum Prices & DAIRY FUTURES PRICES Other Advanced Prices - August 2019 SETTLING PRICE *Cash Settled Date Month Class III* Class IV* Dry Whey* NDM* Butter* Cheese* Class I Base Price (3.5%) ...... $17.89 (cwt) 7-12 July 19 17.35 16.91 34.925 104.500 238.125 1.8130 Base Skim Milk Price for Class I ...... $8.81 (cwt) 7-15 July 19 17.33 16.91 34.775 104.400 239.150 1.8110 7-16 July 19 17.31 16.91 35.075 104.275 239.150 1.8080 Advanced Class III Skim Milk Pricing Factor ...... $8.27 (cwt) 7-17 July 19 17.31 16.90 35.075 103.500 238.550 1.8070 7-18 July 19 17.42 16.90 35.875 103.775 239.175 1.8120 Advanced Class IV Skim Milk Pricing Factor ...... $7.87 (cwt) Advanced Butterfat Pricing Factor ...... $2.6830 (lb.) 7-12 August 19 17.55 17.06 34.250 103.750 244.000 1.8340 7-15 August 19 17.43 17.02 34.000 103.150 245.250 1.8230 Class II Skim Milk Price ...... $8.57 (cwt) 7-16 August 19 17.50 17.08 34.250 103.075 245.850 1.8270 Class II Nonfat Solids Price ...... $0.9522 (lb.) 7-17 August 19 17.67 17.10 34.550 103.100 243.000 1.8410 7-18 August 19 17.69 17.10 35.050 103.375 245.575 1.8400 Two-week Product Price Averages: 7-12 September 19 17.72 17.24 34.000 105.100 245.250 1.8520 Butter ...... $2.3870 lb. 7-15 September 19 17.62 17.24 33.900 104.325 246.725 1.8380 Nonfat Dry Milk ...... $1.0507 lb. 7-16 September 19 17.72 17.31 34.975 104.325 248.500 1.8450 Cheese, 40-pound blocks ...... $1.8341 lb. 7-17 September 19 17.89 17.32 34.800 104.425 248.625 1.8650 Cheese, 500-pound barrels ...... $1.7427 lb. 7-18 September 19 17.92 17.35 35.800 104.700 248.275 1.8630 Dry Whey ...... $0.3622 lb. 7-12 October 19 17.68 17.31 34.000 106.750 243.050 1.8520 7-15 October 19 17.59 17.20 33.625 105.700 243.775 1.8410 7-16 October 19 17.73 17.26 34.500 105.625 245.000 1.8470 7-17 October 19 17.87 17.32 34.975 106.000 243.000 1.8640 $20.00 Class I Milk Prices: Federal Order Minimum 7-18 October 19 17.90 17.40 35.525 106.500 245.550 1.8620 2018 vs. 2019 7-12 November 19 17.55 17.25 33.525 108.000 238.025 1.8410 7-15 November 19 17.42 17.17 33.125 107.125 239.500 1.8250 7-16 November 19 17.52 17.20 34.100 107.100 241.400 1.8270 $18.00 7-17 November 19 17.67 17.29 34.400 107.350 239.200 1.8440 7-18 November 19 17.69 17.35 35.500 108.475 241.450 1.8420 7-12 December 19 17.08 17.22 33.500 109.400 235.500 1.7930 7-15 December 19 16.98 17.16 33.550 108.600 235.500 1.7800 $16.00 7-16 December 19 17.04 17.16 34.125 108.300 236.500 1.7790 7-17 December 19 17.26 17.16 34.400 108.600 235.500 1.7950 7-18 December 19 17.24 17.22 34.975 109.500 237.600 1.7950

7-12 January 20 16.67 17.09 34.125 109.950 229.750 1.7520 7-15 January 20 16.58 17.04 34.125 109.500 229.750 1.7380 $14.00 7-16 January 20 16.67 17.02 34.350 109.500 229.750 1.7370 7-17 January 20 16.83 17.05 34.950 109.500 228.900 1.7570 7-18 January 20 16.88 17.10 34.850 110.050 230.500 1.7620 7-12 February 20 16.58 17.12 34.025 111.500 229.100 1.7420 $12.00 7-15 February 20 16.51 17.05 34.425 110.800 229.100 1.7260 J F M A M J J A S O N D 7-16 February 20 16.52 17.05 34.525 110.800 229.100 1.7270 7-17 February 20 16.68 17.05 34.800 110.800 229.100 1.7470 7-18 February 20 16.77 17.12 35.025 110.800 229.450 1.7520 AVERAGE MONTHLY WPC MOSTLY PRICES: USDA 7-12 March 20 16.64 17.19 35.000 113.100 229.150 1.7450 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 7-15 March 20 16.55 17.14 35.000 111.900 229.150 1.7300 ‘13 1.2606 1.2472 1.2150 1.2378 1.2786 1.3172 1.3518 1.3670 Govt Shutdown 1.6046 1.6908 7-16 March 20 16.56 17.14 35.000 111.900 229.150 1.7350 7-17 March 20 16.74 17.14 34.525 112.000 229.150 1.7540 ‘14 1.7663 1.7799 1.7694 1.7682 1.7530 1.6612 1.6089 1.5549 1.4355 1.3358 1.2751 1.2326 7-18 March 20 16.80 17.14 35.100 112.000 229.150 1.7560 ‘15 1.1727 1.0970 1.0031 .9439 .9103 .8620 .7863 .6473 .5610 .5333 .5313 .5300 ‘16 .5445 .5750 .5852 .6076 .6239 .6616 .6937 .7151 .7305 .7706 .7961 .8608 7-12 April 20 16.73 17.25 35.900 114.000 230.450 1.7480 ‘17 .9318 .9905 .9681 .9425 .9138 .9013 .8919 .8486 .8231 .8063 .7757 .7490 7-15 April 20 16.67 17.24 35.900 113.300 230.150 1.7370 7-16 April 20 16.67 17.24 35.925 112.800 230.150 1.7450 ‘18 .7268 .7211 .6960 .7027 .7502 .7949 .8092 .8144 .8437 .8658 .8817 .8851 7-17 April 20 16.83 17.25 35.000 115.575 230.150 1.7570 ‘19 .8929 .8995 .9025 .9025 .9074 .9244 7-18 April 20 16.90 17.25 35.100 113.625 230.150 1.7650 7-12 May 20 16.83 17.33 35.100 115.000 230.350 1.7580 $1.90 7-15 May 20 16.80 17.33 35.800 114.900 230.150 1.7460 40-Pound DAIRY PRODUCT SALES $1.85 7-16 May 20 16.80 17.33 35.975 114.325 230.000 1.7500 Block Avg $1.80 7-17 May 20 16.93 17.33 36.000 114.075 230.000 1.7630 July 17, 2019—AMS’ National Dairy Prod- $1.75 7-18 May 20 16.95 17.31 36.025 114.075 230.000 1.7690 ucts Sales Report. Prices included are pro- $1.70 vided each week by manufacturers. Prices $1.65 Interest - July 18 20,723 7,660 2,718 8,974 7,827 20,369 collected are for the (wholesale) point of sale $1.60 for natural, unaged Cheddar; boxes of but- $1.55 $1.50 ter meeting USDA standards; Extra Grade $1.45 CHEESE REPORTER SUBSCRIBER SERVICE CARD edible dry whey; and Extra Grade and USPH $1.40 CME vs AM S Grade A nonfortified NFDM. •Revised $1.35 J A S O N D J F M A M J J PLEASE SEND ME MORE INFORMATION ON: July 13 July 6 June 28 June 22 ___Advertising ___Subscribing _____Subscripion Change ___Other______40-Pound Block Cheddar Cheese Prices and Sales If changing subscription, please include your old and new address below Weighted Price Dollars/Pound Name ______US 1.8452 1.8204 1.7942 1.7548 Sales Volume Pounds Title ______US 14,201,935 11,449,331 12,126,169 12,375,186 Company ______500-Pound Barrel Cheddar Cheese Prices, Sales & Moisture Contest Address ______Weighted Price Dollars/Pound US 1.8663 1.7949 1.7276 1.6690 City/St/Zip ______Adjusted to 38% Moisture New Subscriber Info E-Mail Phone ______US 1.7703 1.7075• 1.6407 1.5853 Sales Volume Pounds Name ______US 12,046,109 9,422,113• 12,351,602 12,484,114 Weighted Moisture Content Percent Title ______US 34.64 34.83• 34.71 34.73 Company ______Butter Address ______Weighted Price Dollars/Pound US 2.3942 2.3798 2.3729 2.3594 City/St/Zip ______Sales Volume Pounds US 3,993,643 3,942,112• 4,570,841 4,355,787 Old Subscriber Info E-Mail Phone ______Dry Whey Prices TYPE OF BUSINESS: JOB FUNCTION: Weighted Price Dollars/Pounds ___Cheese Manufacturer ___Company Management US 0.3681 0.3541• 0.3662 0.3553 ___Cheese Processor ___Plant Management Sales Volume ___Cheese Packager ___Plant Personnel US 5,147,882 3,697,262• 6,557,594 6,344,086 ___Cheese Marketer(broker, distributor, retailer ___Laboratory (QC, R&D, Tech) Nonfat Dry Milk ___Other processor (butter, cultured products) ___Packaging ___Whey processor ___Purchasing Average Price Dollars/Pound ___Food processing/Foodservice ___Warehouse/Distribution US 1.0507 1.0507• 1.0433• 1.0410• ___Supplier to dairy processor ___Sales/Marketing Sales Volume Pounds US 16,006,503 11,644,735• 26,072,311• 24,564,975• Circle, copy and FAX to (608) 246-8431 for prompt response

July 19, 2019 CHEESE REPORTER Page 11

DAIRY PRODUCT MARKETS NATIONAL - CONENTIONAL DAIRY PRODUCTS AS REPORTED BY THE US DEPARTMENT OF AGRICULTURE Conventional dairy ad numbers decreased 3 percent this week, while organic dairy ad numbers dipped 45 percent. The most advertised dairy item is conventional ice cream in 48- to 64-ounce containers. Conventional milk in half-gallons has the largest percentage of increase in ad WHOLESALE CHEESE MARKETS numbers, up 229 percent, followed by 2-pound block cheese with an increment of 156 percent. The total ad numbers for conventional cheese and organic cheese increased 31 percent and NATIONAL - JULY 12: Nationwide, industry contacts suggest that while milk supplies may 11 percent, respectively. The average price for conventional 8-ounce block cheese is $2.23 and be tightening somewhat, cheese vats are getting filled. Milk loads are readily available for mak- $4.99 for organic 8-ounce block cheese, representing an organic premium of $2.76. ing cheese. In the Midwest, holiday spot milk offers were less available than in previous years, and $2 under to $1 over Class are normal prices for spot loads. As a comparison, spot milk Conventional milk ad numbers increased by 83 percent, while organic milk ad numbers prices last year were $3 under to $.50 over Class III. Cheese production is active, and many decreased 49 percent. The national average advertised price for conventional milk half-gallons processors want to stay ahead of late season demand. Current domestic demand is steady to is $1.95, compared to $3.49 for organic milk half-gallons, an organic price premium of $1.54. higher for Cheddar and Swiss cheese, in part due to grilling season. In addition, a few contacts Organic half-gallon milk is the most advertised organic dairy item this week. relay they have seen an increase in foodservice demand. However, with stronger domestic prices, it has become harder to attract more international buyers aside from contractual sales. Conventional yogurt ad numbers decreased 13 percent and organic yogurt ads decreased 9 percent. The average price for conventional yogurt in 32-ounce containers is $2.39, while for NORTHEAST- JULY 17: In the Northeast, milk production is seasonally lower, yet in organic the price is $3.71,for an organic retail price premium of $1.32. some areas, output is up this week compared to the recent past. Some market participants noted temperatures are getting hotter and spot milk is becoming a little harder to find. Cheese plants are receiving stable milk supplies at this time. Cheese production schedules RETAIL PRICES - CONVENTIONAL DAIRY - JULY 19 are fairly full. Mozzarella and Provolone inventories are steady to growing, but some orders Commodity US NE SE MID SC SW NW are slower at this time of year. Cheddar barrel and block spot prices are steady to a bit lower. Butter 1# 3.53 3.51 3.58 2.99 NA 3.49 3.88 Wholesale prices, delivered, dollars per/lb: Cheddar 40-lb blocks: $2.2800 - $2.5650 Process 5-lb sliced: $1.9175 - $2.3975 Cheese 8 oz block 2.23 2.18 2.33 1.99 1.84 2.61 1.99 Muenster: $2.2650 - $2.6150 Swiss Cuts 10-14 lbs: $3.2300 - $3.5525 Cheese 1# block 4.51 4.57 4.50 NA NA 4.99 3.99 Cheese 2# block 5.99 5.99 4.99 4.99 NA 5.82 6.58 MIDWEST AREA - JULY 17: A growing number of cheese producers are concerned Cheese 8 oz shred 2.27 2.40 2.28 2.06 2.00 2.55 2.00 about farm milk availability. They suggest offers are down due to the heat, as farmer suppliers are reporting, in some cases, dramatic milk-per-cow output declines. That said, some Cheese 1# shred 3.90 4.40 3.99 1.99 NA 4.08 NA cheese makers are still finding discounted spot milk, possibly due to location and timing. Cottage Cheese 1.79 2.01 1.67 1.92 1.67 1.25 NA Spot milk prices ranged from $1.25 under to $.75 over Class. Undoubtedly, cheese mak- Cream Cheese 2.10 1.90 2.24 1.62 1.66 NA .99 ers are concerned about more 90-plus degree temperatures in the upper Midwest. Cheese sales reports have been mostly positive. Specialty cheese makers continue to prepare for Flavored Milk ½ gallon 2.23 NA 2.50 NA NA 1.99 NA fall demand increases, while pizza cheese and curd producers suggest retail/foodservice Flavored Milk gallon 3.62 NA NA 4.01 NA NA 1.99 demand is remaining healthy. Cheese production has slipped overall, but remains mostly Ice Cream 48-64 oz 2.72 2.77 2.70 2.58 2.61 2.91 2.87 steady. Cheese markets are beginning to show some bearish signals, as both barrel and block prices slipped last week. Cheese makers are not overly concerned at this point. Milk ½ gallon 1.95 2.49 .88 .96 1.19 2.99 1.99 Milk gallon 2.80 2.79 NA 2.25 2.89 2.57 3.50 Wholesale prices delivered, dollars per/lb: Sour Cream 16 oz 1.77 1.86 1.72 1.89 1.50 1.25 .99 Brick 5# Loaf: $2.1925 - $2.6175 Cheddar 40# Block: $1.9150 - $2.3150 Yogurt (Greek) 4-6 oz .97 .97 1.00 1.00 1.00 .88 .87 Monterey Jack 10#: $2.1675 - $2.3725 Mozzarella 5-6#: $1.9925 - $2.9375 Muenster 5# $2.1925 - $2.6175 Process 5# Loaf: $1.8475 - $2.2075 Yogurt (Greek) 32 oz 3.67 4.20 3.47 3.75 3.47 3.66 3.61 Grade A Swiss 6-9#: $2.7450 - $2.8625 Blue 5# Loaf: $2.4600 - $3.5300 Yogurt 4-6 oz .53 .53 .57 .46 .46 .55 .49 Yogurt 32 oz 2.39 2.79 2.70 NA NA NA 1.67 WEST - JULY 17: Western cheese makers report plenty of milk is available to keep cheese facilities running at or near capacity. Production is active, and while the perception US: National Northeast (NE): CT, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VT; of demand may not be all that was hoped for, it is enough to keep inventories in check. Southeast (SE): AL, FL, GA, MD, NC, SC, TN, VA, WV; Midwest (MID): IA, IL, IN, Manufacturers are unphased with the small swings in stock numbers. Buyers say they do KY, MI, MN, ND, NE, OH, SD, WI; South Central (SC): AK, CO, KS, LA, MO, NM, not have any trouble getting the cheese they need. The market is in relatively good balance. OK, TX; Southwest (SW): AZ, CA, NV, UT; Northwest (NW): ID, MT, OR, WA, WY Grilling season has been ongoing, but with hotter weather, consumers may seek to take their eating experiences indoors until football season.

Wholesale prices delivered, dollars per/lb: Cheddar 10# Cuts: $2.1325 - $2.3525 ORGANIC DAIRY - RETAIL OVERVIEW Cheddar 40# Block: $1.9525 - $2.3950 Monterey Jack 10#: $2.1400 - $2.4150 National Weighted Retail Avg Price: Greek Yogurt 4-6 oz: NA Process 5# Loaf: $1.8650 - $2.1200 Swiss 6-9# Cuts: $2.8275 - $3.2575 Cheese 8 oz block: $4.99 Greek Yogurt 32 oz: NA Cream Cheese 8 oz: $2.50 Milk ½ gallon: $3.49 FOREIGN -TYPE CHEESE - JULY 17: The demand for cheese in Germany is stable, Cottage Cheese 16 oz: $3.99 Milk gallon: $5.45 and market conditions are more balanced this week. Sales within and outside the country Yogurt 4-6 oz: $0.58 Sour Cream 16 oz: $2.49 are for the most parts at seasonal levels. Generally, stock limitations are making it difficult Yogurt 32 oz: $3.71 Ice Cream 48-64 oz: NA to honor any additional requests outside of contractual agreements. Sliced cheese output was reduced in favor of Italian type cheeses for delivery in Italy. DRY DAIRY PRODUCTS - JULY 18 Selling prices, delivered, dollars per/lb: Imported Domestic NDM - CENTRAL: Low/medium heat contractual agreements. Production is inter- Blue: $2.6400 - 5.2300 $2.3375 - 3.8250 NDM prices shifted lower on the price range mittent. The market tone is still strong. Gorgonzola: $3.6900 - 5.7400 $2.8450 - 3.5625 and mostly series this week. Midwestern Parmesan (Italy): 0 $3.7250 - 5.8150 contacts relay Mexican buyers are inactive, NDM - EAST: As seasonality lowers avail- Romano (Cows Milk): 0 $3.5275 - 5.6825 and this puts markets under pressure. Bro- able milk supplies in the East, NDM output Sardo Romano (Argentine): $2.8500 - 4.7800 0 kers relay most end-users are content with in the Northeast contrast volumes in other areas of the region where milk supplies are Reggianito (Argentine): $3.2900 - 4.7800 0 current inventories, and interest is there, but not as heavy. While NDM spot trading is Jarlsberg (Brand): $2.9500 - 6.4500 0 only if prices are favorable. Production has increased in recent weeks, with abundant limited, the majority of movement is through Swiss Cuts Switzerland: 0 $3.2675 - 3.5900 condensed skim supplies and committed contracts to cover ice cream and cheese Swiss Cuts Finnish: $2.6700- 2.9300 0 dryers. There is a slightly bearish under- processing needs. Most buyers prefer mak- tone in the NDM market, but most contacts ing just-in-time purchases or waiting-to-see WHOLESALE BUTTER MARKETS - JULY 17 believe markets are somewhat range-bound what the NDM market will do. Meanwhile, and prices may be toward their lower end. sources note suppliers seem more open to WEST: Retail sales are variable from one merged with the increasing temperatures, accepting offers under market, due to grow- manufacturer to another. While some com- which have begun to noticeably affect farm NDM - WEST: Sales are not as good as ing inventory levels. Things could turn as mercial demands are sluggish, others are milk output. These two factors are undoubt- they were in previous weeks. Buyers are the view circulates that activity could heat up good. There were a few cases of livelier edly prompting butter makers to relay a tight- limiting their purchases to contractual loads quickly if volume loads, into Mexico, begin less than load (LTL) sales. Butter output ness on cream markets, and they expect it or just what they need. Therefore, offers pulling on manufacturing supplies. has slowed down because more cream is to remain so. Micro-fixing is active. However, of low/medium heat NDM are above cur- moving to ice cream and other Class II pro- bulk butter has become more available in rent demand. Several plant managers have LACTOSE: The market for lactose and duction. A number of butter makers have portions of the region. Contacts in the South- built a bit of inventories as they wait for a other dairy carbohydrates is weak. While stopped producing butter altogether, opting Central area are finding discounts on bulk clear direction of the market. Production prices for lactose moving into standardiza- to sell their cream. Worldwide, butterfat is butter. Midwestern contacts are still finding is unchanged from last week. Generally, tion and infant formula uses have held val- available at more affordable prices com- similar prices on bulk butter trades. unsteadiness is present in the market. High ues fairly well, edible lactose destined for pared to the US. Spot loads are becom- heat NDM prices have weakened at the top uses as provender and other lower value ing tighter. According to market players, NORTHEAST: With seasonal declines in of the range. Inventories are a bit more avail- uses has constant market pressures caused numerous butter buyers are anxious about milk output occurring, the stage is being set able compared to a week ago. Sales of high by the African swine fever and issues with a possible upsurge in prices and are insur- for downward pressure on regional butter heat NDM continue to be greatly based on the United States’ largest trade partners. ing coverages for future weeks to the best production. A central concern is the antici- of their ability by increasing their near term pated competition for available cream. purchases. With that said, multiples climbed to 1.42 WEEKLY COLD STORAGE HOLDINGS this week, a result of less available cream SELECTED STORAGE CENTERS IN 1,000 POUNDS - INCLUDING GOVERNMENT CENTRAL: Some midwestern butter in the market. Sources noted that suppliers plant managers have scheduled downtime are less likely to extend the terms of some DATE ...... BUTTER CHEESE for maintenance this week. This is timely, butterfat contracts. Regional bulk butter 07/15/19 ...... 40,545 88,146 as cream multiples on the spot market have stocks are moderate to low. At best, food- 07/01/19 ...... 39,543 89,779 become fiscally beyond their reach. Ice service sales are good. Vacation spots and Change ...... 1,002 -1,633 cream production increases have naturally restaurants note moderate summer traffic. Percent Change...... 3 -2 Page 12 CHEESE REPORTER July 19, 2019

Nestle has piloted blockchain CME CASH PRICES - JULY 15 - JULY 19, 2019 Nestle Pilot Program technology since 2017, most Visit www.cheesereporter.com for daily prices Will Trace Milk From prominently with IBM Food Trust, 500-LB 40-LB AA GRADE A DRY which IBM describes as the only CHEDDAR CHEDDAR BUTTER NFDM WHEY New Zealand Farms network of its kind to connect MONDAY $1.7125 $1.7625 $2.4300 $1.0275 $0.3200 participants across the food sup- July 15 (-2¾) (-2¼) (+1¾) (NC) (-¼) To Warehouses, TUESDAY $1.6900 $1.7750 $2.4350 $1.0250 $0.3225 ply through a permissioned, per- July 16 (-2¼) (+1¼) (+½) (-¼) (+¼) Plants In Middle East manent and shared record of food WEDNESDAY $1.6900 $1.7750 $2.4150 $1.0175 $0.3250 Vevey, Switzerland—Nestle said system data. July 17 (NC) (NC) (-2) (-¾) (+¼) it is breaking new ground in sup- In April, Nestle gave consumers THURSDAY $1.7050 $1.7800 $2.4100 $1.0175 $0.3350 access to blockchain data for the July 18 (+1½) (+½) (-½) (NC) (+1) ply chain transparency through a collaboration with OpenSC, a first time, through Mousline puree FRIDAY $1.7050 $1.7800 $2.3975 $1.0075 $0.3400 July 18 (NC) (NC) (-1¼) (-1) (+½) blockchain platform that allows in France. consumers to track their food back That month, Nestlé and Carre- Week’s AVG $1.7005 $1.7745 $2.4175 $1.0190 $0.3285 Change (-0.0605) (-0.0505) (+0.0140) (-0.0155) (+0.0060) to the farm. four had announced that they were Founded by WWF-Australia giving consumers access to block- Last Week’s $1.7610 $1.8250 $2.4035 $1.0345 $0.3225 chain data for Mousline purée in AVG and The Boston Consulting Group Digital Ventures, OpenSC has France. Consumers can use their 2018 AVG $1.3385 $1.5370 $2.2490 $0.7685 $0.4170 Same Week developed a platform that will give smartphone or other device to scan anyone, anywhere access to inde- a QR code on the Mousline pack- pendently verifiable sustainability aging. MARKET OPINION - CHEESE REPORTER and supply chain data. That lets them follow the jour- Cheese Comment: No blocks were sold Monday; the price declined on an uncov- The initial pilot program will ney of the product from the Nestlé ered offer at $1.7625. There were no block sales on Tuesday, either; the price trace milk from farms and produc- factory in the north of France to increased on an unfilled bid at $1.7750. There was no block market activity at all on ers in New Zealand to Nestle facto- Carrefour stores. Wednesday. No blocks were sold Thursday; the price increased on an unfilled bid at ries and warehouses in the Middle They can see the production $1.7800. There was no block market activity at all on Friday. The barrel price declined date, quality control parameters, Monday on a sale at $1.7125, fell Tuesday on a sale at $1.6900, then increased East. Later, the technology will be Thursday on a sale at $1.7050. tested using palm oil sourced in the storage times and the location of Americas. These pilots will allow warehouses. In addition to the Butter Comment: The price increased Monday on a sale at $2.4300, rose Tuesday on a sale at $2.4350, declined Wednesday on a sale at $2.4150, fell Thursday on Nestle to understand how scalable blockchain data, consumers will a sale at $2.4100, and declined Friday on a sale at $2.3975. 61 truckloads of butter the system is. also find information on the farm- was sold at the CME this week. “We want our consumers to ers who supply the potatoes for NDM Comment: The price declined Tuesday on an uncovered offer at $1.0250, fell make an informed decision on Mousline and how the puree is Wednesday on an uncovered offer at $1.0175, and declined Friday on an uncovered their choice of products, to choose made. offer at $1.0075. products produced responsibly,” “This open blockchain technol- Dry Whey Comment: The price fell Monday on a sale at 32.0 cents, rose Tuesday said Magdi Batato, executive vice ogy will allow anyone, anywhere in on a sale at 32.25 cents, increased Wednesday on a sale at 32.50 cents, rose president, head of operations, Nes- the world to assess our responsible Thursday on a sale at 33.50 cents, and increased Friday on an unfilled bid at 34.0 tle SA. “Open blockchain technol- sourcing facts and figures,” com- cents. ogy might allow us to share reliable mented Benjamin Ware, global information with consumers in an head of responsible sourcing, Nes- WHEY MARKETS - JULY 15 - JULY 19, 2019 accessible way.” tle SA. RELEASE DATE - JULY 18, 2019

Animal Feed Whey—Central: Milk Replacer: .2400 (NC) – .2900 (NC) Buttermilk Powder: Central & East: 1.0200 (NC) – 1.1000 (NC) West: 1.0000 (NC) – 1.0700 (NC) Mostly: 1.0300 (NC) – 1.0500 (NC) Casein: Rennet: 3.0725 (-10¼) – 3.7800 (+14¼) Acid: $3.1850 (+5¾) – $3.3000 (+4¼)

Dry Whey—Central (Edible): Nonhygroscopic: .2900 (NC) – .3900 (-3) Mostly: .3300 (NC) – .3725 (-¼) SUPERIOR RESULTS Dry Whey–West (Edible): Nonhygroscopic: .2675 (-¾) – .4000 (-1) Mostly: .3050 (-1½) – .3700 (-1) WITH RELCO CHEESEMAKING SOLUTIONS.

Dry Whey—NorthEast: .3200 (NC) – .4000 (NC) RELCO provides a wide variety of cheese making equipment and Lactose—Central and West: systems for a comprehensive cheese plant design. Our cheese- Edible: .1800 (NC) – .4500 (NC) Mostly: .2500 (NC) – .3650 (-½) technology experts will design a process that is customized to meet Nonfat Dry Milk —Central & East: your speciﬁc needs. We focus on alternative thinking to ensure our Low/Medium Heat: 1.0000 (-2½) – 1.0700 (-1) Mostly: 1.0200 (-1) – 1.0500 (NC) High Heat: 1.1300 (-2¼) – 1.2000 (NC) customers experience superior results. Nonfat Dry Milk —Western: Low/Medium Heat: .9700 (NC) – 1.0700 (-2) Mostly: 1.0200 (-1) – 1.0500 (NC) High Heat: 1.1300 (-2) – 1.2250 (-2) Learn more about RELCO solutions at Whey Protein Concentrate—Central and West: relco.net/cheesereporter. Edible 34% Protein: .8450 (+4½) – 1.0950 (NC) Mostly: .8500 (+½) – 1.0025 (+¼) Whole Milk—National: 1.7100 (+6) – 1.8300 (+3)

Visit www.cheesereporter.com for dairy and historical cheese, butter, and whey prices

AVG MONTHLY LACTOSE MOSTLY PRICES: USDA Contact a RELCO expert today: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 320.231.2210 10 .3568 .3500 .3484 .3358 .3313 .3295 .3277 .3249 .3213 .3343 .3350 .3350 [email protected] ‘11 .3521 .3603 .3820 .4464 .4640 .4700 .5540 .5952 .6086 .7503 .7598 .7684 ‘12 .8552 .8600 .8600 .9126 .9100 .8783 .8383 .8261 .8250 .7850 .7850 .7718  relco.net ‘13 .7314 .7187 .6838 .6439 .6450 .6450 .6310 .6393 Govt Shutdown .6430 .6362 ‘14 .5952 .5950 .5983 .6175 .5959 .5699 .5473 .5349 .4693 .4218 .4050 .3880 ‘15 .3210 .2870 .2472 .2370 .2354 .2170 .1995 .1912 .1893 .1850 .1851 .1914 ‘16 .2061 .2166 .2280 .2408 .2551 .2616 .2769 .2948 .3208 .3416 .3525 .3633 ‘17 .3718 .3750 .3826 .4038 .4100 .3998 .3745 .3435 .2958 .2633 .2417 .2208 ‘18 .2146 .2159 .2200 .2333 .2573 .2796 .3099 .3254 .3363 .3475 .3510 .3580 ‘19 .3700 .3639 .3650 .3525 .3339 .3150 For more information, visit www.relco.net/cheesereporter