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August 28, 2020 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 PRECISE, RAPID SHREDS with Urschel CHEESE REPORTER urschel.com Vol. 145, No. 11 • Friday, August 28, 2020 • Madison, Wisconsin Up To $1 Billion More Announced USDA Raises Fiscal 2020 Dairy Export For USDA’s Food Box Program Forecasts, Lowers Program Has Thus Far Provided Over 75 Million launch a third round of Food Import Forecast Box Program purchases with dis- Washington—The US Depart- Boxes Of Dairy, Other Food Products Across US tributions to occur beginning by ment of Agriculture (USDA), September 1 with completion by in its quarterly Outlook for US Washington—President Trump combination box of fresh produce, October 31, 2020. Those pur- Agricultural Trade report released and US Secretary of Agricul- dairy or meat products, to be deliv- chases will spend the balance of Wednesday, raised its fiscal year ture Sonny Perdue on Monday ered between May 15 and June 30. $3 billion initially authorized for 2020 dairy export forecast and announced up to an additional $1 In mid-June, Perdue announced the program. reduced its dairy import forecast. billion for the Farmers to Families that USDA would extend the con- “With this additional up to $1 For fiscal year 2020, which ends Food Box Program. tracts of select vendors from the billion in funding, the Farmers to Sept. 30, 2020, USDA raised its Perdue had originally announced first round of the Food Box Pro- Families Food Box Program will dairy product export forecast by the Food Box Program in mid- gram. USDA exercised this option continue to save countless jobs, $300 million, to $6.5 billion, due April as part of the Coronavirus to extend contracts for current dis- support our farmers and move food to higher volumes of skim milk Food Assistance Program (CFAP) tributors for the next performance to where it’s needed most,” Perdue powder, whey, and cheese. developed to help farmers, proces- period, July 1 through Aug. 30, for said. During the first nine months of sors, distributors and consumers in up to $1.16 billion of food. USDA on Tuesday announced fiscal 2020 (October 2019-June response to the coronavirus pan- The decision to extend current that it has begun issuing agree- 2020), US dairy exports were val- demic. contractors was determined based ments for distribution of food ued at $4.9 billion, up 15.8 percent Under the Food Box Program, on their performance since May boxes in the upcoming third round from the first nine months of fiscal suppliers package the dairy and 15. Some vendors were extended of solicitations. 2019. For all of fiscal 2019, dairy other food products into family- without any adjustment to their The third round will put more exports were valued at $5.7 billion. sized boxes, then transport them to delivery amounts, while others’ emphasis on food insecurity by For fiscal 2021, USDA is fore- food banks, community and faith- amounts or locations were adjusted seeking entities that provide com- casting that US dairy exports based organizations, and other based on their demonstrated abili- bination boxes and requiring dis- will rise by $100 million from fis- non-profits serving Americans in ties to perform or at the vendor’s tributors to illustrate how they will cal 2020, to $6.6 billion, due to need. request. provide coverage to areas identi- stronger global import demand and On May 8, USDA approved In addition, USDA began new fied as opportunity zones, detail increasing competitiveness of US $1.2 billion in contracts under the contracts with a few vendors subcontracting agreements, and dairy products on global markets. program. That included $461 mil- whose offers were not previously address the “last mile” delivery of USDA lowered its fiscal year lion in fresh fruits and vegetables, accepted due to technical errors in product into the hands of the food 2020 dairy import forecast by $100 $317 million in a variety of dairy their proposals. insecure population. million, to $3.6 billion. During the products, $258 million in meat Then on July 24, Perdue first nine months of fiscal 2020, products and $175 million in a announced that USDA would • See Food Box Program, p. 9 dairy imports were valued at $2.7 billion, up 0.5 percent from the Senators Ask Federal Order Milk Receipts In 2019 first nine months of fiscal 2019. For all of fiscal 2019, dairy imports For Effective Set Record; Class I Use Fell To 28% were valued at $3.7 billion. For fiscal 2021, USDA proj- Implementation year, but also helped lower the More Wisconsin Milk ects that US dairy imports will be percent of producer milk used as unchanged from fiscal 2020, at Of USMCA’s Dairy Was Pooled Than Class I. Specifically, the volume Provisions of producer milk used as Class I • See Trade Forecasts, p. 20 California Milk in 2019, 43.9 billion pounds, was Washington—Some 25 US sena- Washington—Receipts of pro- up 2.9 billion pounds, or 7.2 per- tors from both parties this week ducer milk pooled under federal cent, from 2018. That was the Class 1 Utilization told US Trade Representative Rob- Selected Years milk marketing orders last totaled highest volume of Class I milk Percent of Milk Used in Class 1 ert Lighthizer and US Secretary of a record 156.5 billion pounds, up since 2011’s 44.4 billion pounds. Agriculture Sonny Perdue that the 10.5 percent from 2018’s record The volume of milk used as enforcement of the United States- 64.20 high, according to a new report Class I on the California order Mexico-Canada Agreement’s 61.50 from USDA’s Agricultural Mar- last year totaled 5.3 billion (USMCA) dairy provisions “is keting Service (AMS). pounds. critical,” and asked them to ensure The major portion of the 2019 Meanwhile, the percent of compliance in several areas. increase was the additional milk producer milk used as Class I The USMCA, which entered 48.90 pooled on the California order, in federal orders in 2019 was a into force on July 1, is “poised to which became effective in late record low 28.0 percent. That create new export opportunities 42.80 2018 and was in effect for all of marked the second straight year for America’s dairy industry and 39.30 2019, noted the AMS report, in which Class I use was under a more equitable playing field for Measures of Growth in Federal 30 percent. Class I utilization on 35.40 American dairy exports in Mexico Orders. the California order last year was 32.70 and Canada, but effective imple 29.99 The California order helped 22 percent. 28.00 mentation will be critical to real- increase the volume of pro- • See Enforcing USMCA, p. 7 ducer milk used as Class I last • See Federal Orders, p. 8 1960 70 80 90 00 10 15 17 2019 Page 2 CHEESE REPORTER August 28, 2020 Past Issues Read this week’s issue EDITORIAL COMMENT or past issues of Cheese Reporter on your mobile phone or tablet by scanning this We could fill up an entire col- QR code. umn debating what exactly a “nat- DICK GROVES Cheese Reporter Publishing Co. Inc. ©2020 ural” food is, and indeed FDA has yet to officially define the term 2810 Crossroads Drive, Suite 3000 Publisher / Editor Madison, WI 53718-7972 when it’s used on food labels (608) 246-8430 • Fax (608) 246-8431 Cheese Reporter http://www.cheesereporter.com e: [email protected] DICK GROVES tw: @cheesereporter Publisher/Editor e-mail: [email protected] 608-316-3791 MOIRA CROWLEY More Observations On Some Of Dairy’s Competitors Specialty Cheese Editor One of the many noteworthy has to say about its Vanilla prod- Meanwhile, British Columbia- e-mail: [email protected] 608-316-3793 things about all of the companies uct: “For this delicious flavor we based Daiya, which describes itself trying to grab a piece of the dairy wanted to try something totally as a “pioneer of delicious plant- KEVIN THOME Advertising & Marketing Director market with their non-dairy alter- different. Something no one has based foods,” earlier this month e-mail: [email protected] natives is that they generate plenty ever tasted before. Just kidding, it’s announced that more of its foods 608-316-3792 to think about (and write about). vanilla ice cream that tastes like are now available to new audiences BETTY MERKES Such is the case with a couple of (you guessed it) yummy vanilla ice in the US. Classifieds/Circulation Manager e-mail: [email protected] recent introductions in the non- cream! Because when you’re an Among these products: Cutting 608-316-3790 dairy “dairy” space. animal-free, vegan, lactose-free, Board Cheeze Shreds, which Daiya REGULAR CONTRIBUTORS: First, a new company called The better for the planet type of dairy said is now made with chickpea Jen Pino-Gallagher, Bob Cropp, Brandis Urgent Company has introduced vanilla ice cream you’re already protein and “features the melt and Wasvick, Dan Strongin, John Umhoefer Brave Robot, a frozen dessert deliciously different enough.” stretch of dairy cheese.” These You can e-mail our contributors at: made using animal-free whey pro- Here’s another quote from Brave shreds are available in four variet- [email protected] tein from Perfect Day. When you Robot’s website: “Our deliciously ies, including Cheddar Style, Moz- The Cheese Reporter is the official visit Brave Robot’s website, you’re smart dairy makes our ice cream zarella Style, Pepperjack Style and publication of the following associations: welcomed with a friendly greeting: deliciously smarter...Brave Robot is a new Cheddar & Mozzarella Style California Cheese & Butter Association “We’re an animal-free, vegan, lac- made with one-of-a-kind, animal- Blend.
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