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July 19, 2019 d's Dairy orl In W du e st h r t y g W n i e e v Since 1876 k r e l y S 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.
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