Volume 31 February 25, 2011 Number 5

INSIDE Rising cheese prices can be

✦ Total butter, cheese stocks up from December. challenge for pizza business For details, see page 3. By Alyssa Sowerwine of foodservice at FCStone/ would take the first half of the past years,” Cropp says. “The ✦ Guest column: Downes-O’Neill. “Prices aren’t year to slow down the growth net result is that it appears ‘Taking policy changes MADISON, Wis. — To the exactly where we expected in milk production as dairy pro- that buyers are anticipating to Capitol Hill without surprise of many, cheese prices them to be, especially for this ducers slowly adjust cow num- considerably tighter supplies consensus is unacceptable.’ have seen steady increases over time of year.” bers and milk per cow slows in of milk and dairy products for For details, see page 4. the past several weeks at the USDA’s Dairy Market News response to much higher feed the immediate months ahead Chicago Mercantile Exchange notes that cheese inventories prices,” he says. “But it now and have been aggressive in ✦ Study finds actual sodium (CME). While this is welcome remain above historic levels. looks like the opposite will bidding up prices.” may vary from what is on news to some in the dairy indus- Cheddar block prices at occur with prices averaging Dairy Market News notes manufacturers’ labels. try, it presents some challenges the CME have increased from higher for the first half of the that Mozzarella interest re- For details, see page 12. for pizza makers. $1.3425 per pound at the begin- year than the second half, and mains solid, as pizza makers re- “Coming into the year, I ning of January to $1.9550 as of with averages for the year much supply for the typically stronger ✦ January milk production up think it’s safe to say that the Feb. 18, while barrels jumped improved over 2010.” NCAA basketball tournament 2.3 percent from year ago. overall outlook in the dairy from $1.3400 to $1.9175 in the Cropp notes the run-up in demand. For details, see page 31. industry was bearish,” says same time period. prices is partially explained “Pizza companies kind of Rob Chesler, vice president Prices continued to increase by several factors. While milk get the double whammy when this week. On Tuesday, Cheddar production is still running well it comes to cheese prices,” blocks climbed another 2.75 above year-ago levels, some as- Chesler says. “The high demand cents, and then another fourth sume that sharply higher corn, for Mozzarella has driven prices Pizza industry using greater of a cent on Wednesday to settle soybean and hay prices will up, and pizza demand certainly at $1.9850, where the price soon curtail milk production. has helped to fuel that. At the variety, volumes of cheese remained Thursday. Second, while fluid milk same time, about 35-50 percent Cheddar barrels also in- sales have not shown growth, of pizza companies’ input costs By Johanna Nelson creased by 2.75 cents on butter and cheese sales have are from cheese.” Tuesday to $1.9450 per pound. been quite favorable despite Chesler adds that adding MADISON, Wis. — The pizza industry has proven to be a bright spot Barrels saw a slight decrease on higher prices, he says. in wheat costs and energy for cheese companies struggling through difficult economic times. Wednesday to $1.9400 but again In addition, Australia and costs for moving product can And it’s not just producers of cheeses such as Mozzarella that benefit rose by a cent on Thursday to New Zealand, which account put a financial strain on pizza — pizzerias throughout the country are incorporating a variety of settle at $1.9500. for about 40 percent of world operators. “non-traditional” pizza cheeses into their pies. This price pattern is the op- dairy trade, have scaled back He notes that pizza opera- “The pizza industry is a huge source of revenue,” says Dean Som- posite of what was forecasted anticipated milk production for tors often buy cheese in a “cents mer, cheese and food technologist for the Wisconsin Center for Dairy back in January, notes Bob the year due to adverse weather plus” arrangement, negotiating Research (CDR), Madison, Wis. “It is critical for the cheese industry, Cropp, professor emeritus at that has impacted pasture prices based on the CME block and has been for many years.” the University of Wisconsin conditions, he adds. price. According to Jim Montel, executive vice president, strategic initia- Cooperative Extension in his “Improvement in the world Chesler says that typically tives, Dairy Management Inc. (DMI), 25 percent of U.S. cheese produced latest “Dairy Situation and economy also has increased he recommends pizza opera- is used by the pizza industry. Outlook” report. the demand for dairy products, tors lock in a price for about half As a key player in the cheese industry’s economic wellbeing, DMI “It was then assumed that it and at higher prices than in Turn to PRICES, page 32 formed a partnership with Domino’s Pizza in 2009 to address a decline of cheese consumption on pizzas. The partnership that began with Domino’s American Legends line of specialty pizzas has since helped the industry regain momentum. “Research as well as what pizza chains would tell you is that they Menu regulations put some Sensory analysis lost a focus on pizza and started selling sandwiches, salads, desserts helps make good and pasta,” Montel says. “And then with the escalation of commodity pizza chains in unique spot cheese matches costs, many of them tried to deal with rising costs by taking cheese off By Alyssa Sowerwine pizzas or reducing the quality.” By Rena Archwamety As a result, he says consumers moved into other categories to meet their in-restaurant eating needs. MADISON, Wis. — The food industry is gearing up for the an- ticipated release of draft regulations from FDA on national menu MADISON, Wis. — In When the pizza cheese issue came on the radar screen, DMI selected between the process of mak- Domino’s Pizza as a key partner driver to help reinvigorate the sector labeling provisions, but some companies feel the regulations should not take a “one size fits all” approach. ing cheese and selling the and sell more pizza and pizza cheese. finished product, sensory To help realize this objective, Montel says three key drivers in the pizza FDA in August 2010 first announced the availability of a draft guidance for the industry that included questions and answers analysis is a helpful research category were assessed — value, product quality and advertising. and development tool that “We try to push all three buttons,” Montel says. regarding implementation of menu labeling regulations included in the Patient Protection and Affordable Care Act of 2010. can fine tune the cheese to American Legends pizzas feature high-end ingredients. The cheese best match its end use. content depends on variety, but typically they have about 40 percent The regulations would require chain restaurants, similar retail food establishments and vending machines with 20 or Sensory analysis covers more cheese than a regular pizza. a broad range of attributes, The line features eight specialty pizzas, including the newest more locations to provide specific nutrition labeling information. Those restaurants must post calories on menus, menu boards from simple observations of Turn to VARIETY, page 26 Turn to MENU, page 25 Turn to SENSORY, page 28 Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 2 CHEESE MARKET NEWS® — February 25, 2011 MARKET INDICATORS

Chicago Mercantile Exchange CHEESE FUTURES for the week ended February 24, 2011 Cash prices for the week ended February 25, 2011 (Listings for each day by month, settling price and open interest) Monday Tuesday Wednesday Thursday Friday Fri., Feb. 18 Mon., Feb. 21 Tues., Feb. 22 Wed., Feb. 23 Thurs., Feb. 24 Feb. 21 Feb. 22 Feb. 23 Feb. 24 Feb. 25 FEB11 1.736 371 1.736 371 1.736 371 1.736 371 Cheese Barrels MAR11 1.861 310 1.880 306 1.880 306 1.880 312 Price $1.9450 $1.9400 $1.9500 $1.9500 APR11 1.770 217 1.770 217 1.725 219 1.668 243 MAY11 1.752 142 1.752 142 1.705 143 1.644 152 Change Market +1 +2 3/4 -1/2 NC JUN11 1.720 138 Market closed 1.720 138 1.694 138 1.649 152 Closed JUL11 1.707 95 1.717 97 1.717 97 1.662 91 Cheese 40-lb. block AUG11 1.720 92 1.720 92 1.725 93 1.702 96 Price $1.9825 $1.9850 $1.9850 $1.9875 SEP11 1.730 92 1.720 98 1.720 98 1.718 98 Change +2 3/4 +1/4 NC +1/4 OCT11 1.715 149 1.705 150 1.705 150 1.705 150 NOV11 1.680 171 1.685 173 1.685 173 1.685 173 Weekly average (Feb. 22-25): Barrels: $1.9463(+.0398); 40-lb. Blocks: $1.9850(+.0415). DEC11 1.680 175 1.680 177 1.680 177 1.680 177 Weekly ave. one year ago (Feb. 22-26, 2010): Barrels: $1.3290; 40-lb. Blocks: $1.3690. Total Contracts Traded/ Open Interest 40/1,952 17/1,961 7/1,965 139/2,015 Extra Grade NDM Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. Price $1.8000 $1.8000 $1.8000 $1.8000 Change Market NC NC NC NC Closed Grade A NDM for the week ended February 24, 2011 Price $1.8325 $1.8325 $1.8325 $1.8325 DRY WHEY FUTURES (Listings for each day by month, settling price and open interest) Change +1/4 NC NC NC Fri., Feb. 18 Mon., Feb. 21 Tues., Feb. 22 Wed., Feb. 23 Thurs., Feb. 24 Weekly average (Feb. 22-25): Extra Grade: $1.8000(+.0175); Grade A: $1.8325(+.0210). FEB11 43.00 479 43.00 479 43.00 479 43.00 479 Grade AA Butter MAR11 53.03 299 51.00 300 51.75 301 50.75 296 Market $2.0050 $2.0050 $2.0100 $2.0200 APR11 58.73 317 58.18 317 57.98 318 57.00 313 Price MAY11 58.50 260 259 58.00 264 56.00 263 Closed NC NC +1/2 +1 58.50 Change JUN11 58.75 177 Market closed 58.75 177 58.50 177 55.00 182 JUL11 59.00 108 58.25 110 58.25 110 57.00 110 Weekly average (Feb. 22-25): Grade AA: $2.0100(-.0365). AUG11 55.75 105 55.25 104 55.25 104 54.98 104 Class II Cream (Major Northeast Cities): $2.2511(-.0567)–$2.5990(-.0235). SEP11 53.50 106 53.25 107 53.25 107 51.50 107 OCT11 50.00 114 48.95 115 48.93 115 48.90 116 NOV11 48.50 108 47.75 109 47.75 109 47.70 110 Sign up for our daily fax or e-mail service for just $104 a year. Call us at 608-288-9090. DEC11 48.50 103 48.50 103 48.50 103 48.50 104

Total Contracts Traded/ Open Interest 20/2,176 16/2,180 27/2,187 67/2,184 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. Weekly Cold Storage Holdings February 21, 2011 On hand Week Change since Feb. 1 Last Year Monday Change Pounds Percent Pounds Change Butter 7,033 +188 +2,527 +56 10,601 -3,568 Cheddar Cheese and Dairy Product Prices Cheese 129,008 -188 +1,899 +1 140,727 -11,719 For the week ended: 2/19/11 2/12/11 2/5/11 1/29/11 (These data, which includes government stocks and is reported in thousands of pounds, are based on reports from a Cheese 40-lb. Blocks: limited sample of cold storage centers across the country. This chart is designed to help the dairy industry see the trends 1 in cold storage between the release of the National Agricultural Statistics Service’s monthly cold storage reports.) Average price Minn./Wis. $1.8445 $1.7646 $1.6559 $1.5342 Other states $1.7799 $1.6444 $1.5659 $1.4524 CLASS III PRICE U.S. $1.7850 $1.6518 $1.5719 $1.4580 Sales volume2 (Dollars per hundredweight, 3.5% butterfat test) Minn./Wis. 733,036 570,314 698,321 695,379 YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Other states 8,580,252 8,683,164 9,892,940 9,462,937 2005 14.14 14.70 14.08 14.61 13.77 13.92 14.35 13.60 14.30 14.35 13.35 13.37 U.S. 9,313,288 9,253,478 10,591,261 10,158,316 2006 13.39 12.20 11.11 10.93 10.83 11.29 10.92 11.06 12.29 12.32 12.84 13.47 Cheese 500-lb. Barrels: 13.56 21.38 20.60 2007 14.18 15.09 16.09 17.60 20.17 19.83 20.07 18.70 19.22 Average price1 2008 19.32 17.03 18.00 16.76 18.18 20.25 18.24 17.32 16.28 17.06 15.51 15.28 2009 10.78 9.31 10.44 10.78 9.84 9.97 9.97 11.20 12.11 12.82 14.08 14.98 Minn./Wis. $1.9171 $1.7993 $1.6992 $1.5685 2010 14.50 14.28 12.78 12.92 13.38 13.62 13.74 15.18 16.26 16.94 15.44 13.83 Other states $1.8858 $1.7678 $1.6216 $1.5115 2011 13.48 U.S. $1.9005 $1.7840 $1.6639 $1.5383 Adj. price to 38% moisture Minn./Wis. $1.8364 $1.7223 $1.6200 $1.4996 Other states $1.7847 $1.6722 $1.5317 $1.4367 U.S. $1.8088 $1.6979 $1.5796 $1.4662 Sales volume2 STAFF SUBSCRIPTION INFORMATION Minn./Wis. 3,967,708 4,858,039 4,870,054 4,384,750 Susan Quarne, Publisher Cheese Market News®, Publication #0598-030, Other states 4,496,936 4,579,680 4,059,156 4,921,814 (PH 608/831-6002; FAX 608/831-1004) (ISSN 0891-1509), is published weekly by Quarne Publishing U.S. 8,464,644 9,437,719 8,929,210 9,306,564 e-mail: [email protected] LLC, 4692 Signature Drive, Middleton, WI 53562; Phone Moisture content Kate Sander, Editorial Director 608/831-6002; FAX 608/831-1004. Periodicals postage paid at Madison, WI. Circulation records are maintained by Minn./Wis. 35.28% 35.23% 35.15% (PH 509/962-4026; FAX 509/962-4027) 34.97% Quarne Publishing LLC, 4692 Signature Drive, Middleton, WI Other states e-mail: [email protected] 34.49% 34.46% 34.36% 34.77% 53562. POSTMASTER: Send address changes to Cheese Alyssa Sowerwine, Senior Editor U.S. 34.86% 34.86% 34.95% Market News®, Subscriber Services, P. O. Box 628254, 34.69% (PH 608/288-9090; FAX 608/288-9093) Middleton, WI 53562; Form 3579 requested; or call direct Butter: e-mail: [email protected] at 608/831-6002. All rights reserved under the United States Average price1 U.S. $2.0792 $2.0862 $2.0785 $2.0674 Rena Archwamety, News/Web Editor International and Pan-American Copyright Conventions. Sales volume2 U.S. 2,473,486 3,165,702 3,843,089 2,461,028 (PH 608/288-9090; FAX 608/288-9093) No part of this publication may be reproduced, stored in a e-mail: [email protected] retrieval system or transmitted in any form or by any means, Nonfat Dry Milk: 1 Johanna Nelson, Features Editor mechanical, photocopying, electronic recording or otherwise, Average price U.S. $1.3938 $1.3614 $1.3320 $1.2859 (PH 608/288-9090; FAX 608/288-9093) without the prior written permission of Quarne Publishing LLC. Sales volume2 U.S. 18,128,348 *17,309,984 17,218,051 24,643,150 e-mail: [email protected] Opinions expressed in articles are those of the authors and Dry Whey: do not necessarily reflect those of Quarne Publishing LLC 1 ® ® Average price U.S. REGULAR CONTRIBUTORS dba Cheese Market News . Cheese Market News does not $.4350 $.4201 $.3996 2 *$.4085 Joseph O’Donnell, John Umhoefer, Downes-O'Neill LLC, endorse the products of any advertiser and does not assume Sales volume U.S. 10,205,610 *10,072,646 *9,323,662 10,615,492 International Dairy Foods Association, National Milk and hereby disclaims any liability to any person for any loss * 1 2 Producers Federation, U.S. Dairy Export Council or damage caused by errors or omissions in the material /Revised. /Prices weighted by volumes reported. /Sales as reported by participating manufacturers. contained herein, regardless of whether such errors result Reported in pounds. More information is available by calling NASS at 202-690-2424. SUBSCRIPTIONS & BUSINESS STAFF from negligence, accident or any other cause whatsoever. Subscription/advertising rates available upon request Copyright 2011 by Quarne Publishing LLC. Contact: Susan Quarne - Publisher Subscriptions: $135 for U.S., second-class delivery; $190 P.O. Box 628254, Middleton, WI 53562 for U.S. first-class delivery including Canada and $330 Inter- PHONE 608/831-6002 • FAX 608/831-1004 national rate to all others. Printed in U.S.A. WEBSITE: www.cheesemarketnews.com

DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions. Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com February 25, 2011 — CHEESE MARKET NEWS® 3 NEWS/BUSINESS MARKET INDICATORS U.S. butter, cheese stocks rise from December WASHINGTON — Total U.S. butter up 9 percent from Jan. 31, 2010’s 588.2 CHEESE FUTURES in cold storage as of Jan. 31, 2011, was million pounds. NOW TRADING. 118.9 million pounds, an increase of 46 Swiss cheese in cold storage totaled percent from the 81.7 million pounds in 36.3 million pounds at the end of Janu- YOU CAN CUT YOUR HEDGING COSTS cold storage at the end of December 2010, ary 2011, up 15 percent from December TRADE WITH GPC FOR $3.41 PER SIDE according to data released this week by 2010’s 31.5 million pounds and up 39
Class III Milk
Class IV Milk
Whey
Cheese
Cash Settle Butter
NFDM
Options USDA’s National Agricultural Statistics percent from January 2010’s 26.2 mil-
Trade Electronically $3.41 Side* Service (NASS). January butter stocks, lion pounds.  
 
   however, remained 29 percent below Other natural cheese in cold storage the 168.1 million pounds in storage as totaled 376.4 million pounds at the end of Jan. 31, 2010. of January 2011, down 2 percent from In its monthly report, NASS reports December 2010’s 385.6 million pounds BROKERS OF DAIRY FUTURES & OPTIONS SERVING AGRI-BUSINESS SINCE 1933
     Call Free: 1-877-Gressel total U.S. natural cheese in cold stor- but 3 percent higher than January 2010’s   Southwestern Division: (602) 374-3885     age at the end of January 2011 was 1.05 367.2 million pounds.      [email protected] billion pounds, up less than 1 percent NASS further reports that 2010 from the end of December 2010 and 7 revisions of American and other natu- For more information circle 1 on the FAST FAX form on page 32. percent higher than the 981.6 million ral cheese are the result of increased pounds in cold storage at the end of coverage of cold storage facilities. January 2010. Also released this week was the an- for the week ended February 24, 2011 Total American cheese in cold stor- nual cold storage summary for 2010. CME FUTURES age was 639.0 million pounds as of Jan. The report shows total natural cheese Class III Milk#* 31, 2011, NASS says, up 1 percent from in cold storage peaking at 1.07 billion Fri., Feb. 18 Mon., Feb. 21 Tues., Feb. 22 Wed., Feb. 23 Thurs., Feb. 24 Dec. 31, 2010’s 630.8 million pounds and pounds at the end of July 2010. CMN FEB11 16.99 4,885 16.98 4,889 17.04 4,934 17.00 4,934 MAR11 18.51 6,355 18.77 6,361 18.75 6,425 18.73 6,472 APR11 18.06 5,889 18.15 5,827 17.61 5,856 17.15 5,894 MAY11 17.85 4,713 17.89 4,677 17.49 4,669 16.91 4,685 CWT assists with more exports of cheese JUN11 17.56 3,682 17.40 3,683 17.06 3,648 16.62 3,678 ARLINGTON, Va. — Cooperatives through May 2011. JUL11 17.44 2,603 17.37 2,604 17.05 2,636 16.74 2,604 AUG11 17.38 2,392 Market closed 17.34 2,418 17.20 2,439 16.91 2,484 Working Together (CWT) recently has In 2011, CWT has assisted members SEP11 17.34 2,390 17.25 2,380 17.17 2,408 17.00 2,450 accepted 20 requests for export assis- in making export sales of Cheddar, OCT11 16.93 2,204 16.91 2,219 16.95 2,202 16.92 2,240 NOV11 16.57 2,074 16.64 2,099 16.66 2,107 16.63 2,102 tance from Darigold, Dairy Farmers of Monterey Jack and Gouda cheese to- DEC11 16.44 2,002 16.60 2,050 16.62 2,033 16.54 2,038 America, and Foremost Farms to sell a taling 4,880 metric tons (10.8 million JAN12 16.08 164 16.12 172 16.12 183 16.07 188 total of 2,306 metric tons (5.08 million pounds). FEB12 15.90 109 15.95 112 15.80 116 15.80 125 MAR12 15.90 93 15.95 93 15.75 96 15.80 107 pounds) of Cheddar and Monterey Jack CWT will pay export bonuses to APR12 15.98 58 15.98 58 15.80 57 15.85 59 to customers in North Africa, the Middle the bidders when delivery of the MAY12 15.80 39 15.98 49 15.90 56 15.90 57 East, Central America, Europe and Asia. product is verified by the submission JUN12 15.80 31 16.00 39 15.85 39 15.85 39 Total Contracts Traded/ The product will be delivered February of the required documentation. CMN Open Interest 2,359/39,764 2,665/39,838 3,279/40,018 2,299/40,273 Class IV Milk* Dry Products February 25, 2011 Fri., Feb. 18 Mon., Feb. 21 Tues., Feb. 22 Wed., Feb. 23 Thurs., Feb. 24 FEB11 18.40 65 18.40 65 18.40 65 18.40 65 MAR11 19.80 212 19.80 212 19.80 212 19.75 212 NONFAT DRY MILK APR11 20.45 282 Market closed 20.45 283 20.20 327 20.20 339 Central & East: low/medium heat $1.4400(+2)-$1.8500; MAY11 21.05 291 21.00 291 20.70 313 20.00 340 mostly $1.4500-$1.7500. JUN11 20.75 330 20.75 330 20.45 335 20.00 355 high heat $1.4500-$1.8500. JUL11 20.55 272 20.50 275 20.20 305 20.00 305 West: low/medium heat $1.3500(+5)-$1.8500; AUG11 20.01 257 20.00 257 19.70 274 19.50 276 mostly $1.4500(+5)-$1.7900(+5). Total Contracts Traded/ high heat $1.4000(+4)-$1.7000(+8). Open Interest 53/2,225 9/2,234 151/2,374 138/2,490 Calif. manufacturing plants: extra grade/grade A weighted ave. $1.3293(+.0173) based on 14,124,437 lbs. Sales to CCC: 0 lbs. Cash-Settled NDM Fri., Feb. 18 Mon., Feb. 21 Tues., Feb. 22 Wed., Feb. 23 Thurs., Feb. 24 WHOLE MILK POWDER (National): $1.7500(+10)-$2.0400. FEB11 136.50 290 136.50 290 136.50 290 136.50 290 MAR11 158.00 254 158.00 254 158.00 242 158.00 242 APR11 168.00 189 168.00 187 167.00 201 166.00 215 EDIBLE LACTOSE MAY11 175.50 180 173.00 174 171.00 215 168.50 219 (FOB)Central and West: $.3100(-1)-$.4600; mostly $.3300-$.3900. JUN11 171.50 160 Market closed 171.50 160 169.50 197 167.00 204 JUL11 169.75 114 168.00 116 166.00 142 163.50 142 AUG11 164.00 89 162.00 91 160.00 122 157.50 123 105 DRY WHEY SEP11 154.00 83 152.50 83 151.50 150.00 111 OCT11 147.25 53 147.25 53 146.25 72 146.28 87 Central: nonhygroscopic $.3600-$.5800(+15); NOV11 138.00 40 138.00 37 138.00 37 137.50 43 mostly $.3700-$.4175. DEC11 138.00 38 138.00 39 138.00 39 138.00 39 West: nonhygroscopic $.4050(+3/4)-$.6700; Total Contracts Traded/ mostly $.4400(+1)-$.5150(+1 1/4). Open Interest 42/1,484 340/1,662 83/1,715 (FOB) Northeast: extra grade/grade A $.4075(+1/2)-$.4325(+1/2). 23/1,490

ANIMAL FEED (Central): Whey spray milk replacer $.2750(+1/2)-$.3800. Cash-Settled Butter Fri., Feb. 18 Mon., Feb. 21 Tues., Feb. 22 Wed., Feb. 23 Thurs., Feb. 24 WHEY PROTEIN CONCENTRATE (34 percent): $1.0200-$1.4500; FEB11 208.00 378 208.00 378 208.00 378 208.00 378 MAR11 196.50 511 196.50 511 197.00 509 197.00 509 mostly $1.0300-$1.1200(+2). APR11 196.50 465 195.00 470 192.00 478 192.05 483 MAY11 196.53 324 195.60 334 194.00 341 194.00 354 DRY BUTTERMILK JUN11 196.00 237 Market closed 195.50 239 195.00 241 192.50 253 (FOB)Central & East: $1.3500(+4)-$1.6500(+16). JUL11 196.00 151 195.50 153 193.50 158 194.00 160 (FOB) West: $1.3300(+5)-$1.5400; mostly $1.3900(+5)-$1.4500(+5). AUG11 193.75 99 194.00 101 193.75 107 194.25 108 SEP11 192.75 86 193.00 88 193.00 88 193.50 91 OCT11 193.00 70 192.98 71 192.98 71 192.50 86 CASEIN: Rennet $4.1400-$4.4500; Acid $4.2800-$4.5000. NOV11 193.00 53 193.00 56 191.00 63 191.50 68 DEC11 186.00 69 185.00 69 185.00 71 184.50 71 Total Contracts Traded/ Open Interest 65/2,443 28/2,470 62/2,505 66/2,561 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. #The total contracts traded for Class III milk includes electronically-traded contract volumes. *Total Contracts Traded/Open Interest reflect additional months not included in this chart.

DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions. Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 4 CHEESE MARKET NEWS® — February 25, 2011 GUEST COLUMNIST CMN Exclusive!

reached consensus on a path toward substantial reform, even though they system is fundamental to everyone’s busi- Perspective: acknowledged that the federal order ness, producers and processors alike. But Industry Issues system affects every manufacturer in changes must be developed carefully and different ways and the changes would considered seriously because the impact Connie Tipton is president and bring consequences. Fortunately, the on and consequences for the industry CEO of the International Dairy executives recognized that if we did can be great. Foods Associaiton. She contributes not work to develop agreement with It is, therefore, a dangerous idea this column exclusively for Cheese dairy producers and dairy producer to tee up changes to this system on Market News®. organizations, our reform concepts Capitol Hill without a broad consensus would go nowhere. that the changes will make the indus- In the following year, Bain & Co. try work better. It is doubtful that an conducted an extensive study on the adversarial legislative process — rife global challenges and opportunities with compromises, vote trading and facing the U.S. dairy industry. Basing last-minute deals — that is driven its recommendations on the study, Bain by those who are not experts in this identified a clear path forward for the Byzantine system could yield an end dairy industry, provided that U.S. dairy product that is better than the one policies could be streamlined to promote we now have. In fact, the commercial Taking policy changes to Capitol Hill market growth. In fact, Bain concluded uncertainty created by a “reformed” that a “collective effort to reform” federal federal milk marketing order system, without consensus is unacceptable milk marketing orders was essential to combined with inevitable unintended position the United States dairy industry consequences, could land the dairy When you identify a problem, What does surprise me, though, is as a consistent exporter. industry in a far worse position than the process usually leads you to that we still haven’t been able to find Recognizing the opportunities, the we are now. Hard to imagine? For me, the possibility of a solution. And I significant consensus on what the right National Milk Producers Federation the Affordable Health Care for America think it’s pretty clear that most of fix would be. This lack of consensus (NMPF) developed aggressive pro- Act comes to mind. us working in or with the U.S. dairy has become especially critical now posals for reform. Since then, we’ve Let’s face it, putting Congress in industry recognize the problems cre- because our entire industry is facing so talked and talked about directions the driver’s seat on changes to our ated by our federal milk marketing many market challenges and missing that reform might take. pricing policies without industry order system. The solution, however, opportunities that could be assisted Despite much activity by joint com- agreement is folly, or worse. Broad remains elusive. by a workable solution to this broken mittees of IDFA and NMPF members, consensus on federal milk market- For most of us, it’s not surprising system. we appear to be no closer today to a ing order changes must precede any that a program developed in the 1930s So, why the delay? It’s certainly not consensus position on the reform of legislative proposal taken to Capitol is out of step with today’s markets, for lack of trying. this cumbersome and complicated Hill. The old proverb, “Better the despite the many tweaks made to the For many years, our leadership regulatory pricing system than we devil you know than the devil you program over the years. And it’s not at the International Dairy Foods were four years ago. This is a real don’t know,” certainly applies here. surprising that many agree the federal Association (IDFA) has embraced shame, because much is at stake. But Without consensus, we’ll be better off pricing system should be simplified. changing this system to allow markets the outcome will be even worse if a with the program we have than with Moving to fewer classes, developing a greater role in setting prices for milk. proposal to reform the federal order any new programs that might evolve. a competitive pay price instead of In fact, in January 2007, the IDFA system is given to Congress to arbitrate Let’s hope it doesn’t come to that. CMN complicated and rigid formulas, and board of directors formed a Federal an outcome without the consensus of eliminating “make allowances” for Order Strategic Planning Committee the industry. The views expressed by CMN’s guest manufacturers, for example, are all under the leadership of John Kaneb, We all recognize how complex the fed- columnists are their own opinions steps that would move us in the right CEO of HP Hood. By July of that year, eral milk marketing orders are and agree and do not necessarily reflect those of direction. this group of 15 top dairy executives that they must be changed. This pricing Cheese Market News®. NEWS/BUSINESS

FDA releases report detailing drug residues Nominations open for Wis. export awards WASHINGTON — FDA has released pick-up tankers in fiscal 2010 totaled MADISON, Wis. — The Wisconsin or organization. Self nominations are the fiscal year 2010 annual report of 3,204,371. Of these, 802 or 0.025 per- Department of Commerce recently encouraged. the National Milk Drug Residue Data cent were positive. Samples taken announced that nominations will be Award categories include Agri- Base (NMDRD), a voluntary industry from pasteurized fluid milk and milk accepted through April 15 for the An- cultural Exporter, Manufacturing reporting program. products totaled 44,777. One of these nual Governor’s Export Achievement Exporter, Service Exporter, High The report presents summary data samples, or 0.002 percent, tested Awards. Tech Exporter and Export Assistance on samples and tests conducted Oct. positive. Producer samples totaled Each year, Wisconsin’s governor Provider. 1, 2009 through September 30, 2010. 545,148, and 431 of these, or 0.079 per- salutes state firms and organizations Nominees must show innovation, All 50 states and Puerto Rico submit- cent, tested positive. Other samples that have achieved extraordinary re- effectiveness and special effort in ted data for this report. totaled 87,182, and of these, 11 or sults in international markets or have growing exports and enhancing em- During this period, 3,881,478 0.013 percent tested positive. contributed to Wisconsin’s ability to ployment, the economy and Wisconsin’s samples were analyzed for animal Of the total positive samples, 1,213 compete globally. This year’s awards international prestige. Nominees will drug residues. Of these samples, 1,245 tested positive for beta-lactams (out of will be presented May 10 at the annual be evaluated against organizations or tested positive for a residue. In fiscal 3,812,457 tests); 24 tested positive for Wisconsin International Trade Confer- firms of similar size. 2009, 1,387 out of a total 3,958,455 tetracyclines (out of 23,722 tests); five ence in Milwaukee. Submissions can be sent to the samples of milk tested positive. In tested positive for sulfamethazine (out Any agricultural, forestry, industrial, Wisconsin Department of Commerce fiscal 2010, a total of 3,892,196 tests of 27,425 tests); three tested positive high technology or service enterprise Bureau of Export Development, 201 were reported on the samples for 10 for sulfonamides (out of 24,157 tests); successfully engaging in or assisting in West Washington Avenue, Madison, WI different groups of families or indi- and one tested positive for sulfadi- the export of Wisconsin-origin products 53703, e-mailed to international@wis- vidual drugs. Thirty testing methods methoxine (out of 1,932 tests). or services can be nominated. Nomi- consin.gov, or faxed to 608-266-5551. were used to analyze the samples for The full NMDRD report and re- nations can be made by an employee For more information, call the drug residues. ports from past years can be found at of the firm or organization, or by an Wisconsin Department of Com- Samples taken from bulk milk www.kandc-sbcc.com/nmdrd/. CMN outside person familiar with the firm merce, 608-267-0639. CMN

Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com February 25, 2011 — CHEESE MARKET NEWS® 5 NEWS/BUSINESS Federal government faces possible shutdown if agreement is not reached on funding levels WASHINGTON — With current fund- “This would simply be a two-week ver- CR bill. The cuts, which would exceed believe they could emerge victorious ing levels set to expire March 4, the sion of the reckless measure the House $60 billion, include cuts from FDA’s from the political fallout if a government government faces a possible shutdown passed last weekend,” says Jon Summers, budget, as well as from USDA’s Farm shutdown does occur, Republican lead- if Congress cannot reach an agreement a spokesman for Sen. Harry Reid, D-Nev. Service Agency (FSA) and the Women, ers do not want a repeat of what hap- by the end of next week. “It would impose the same spending Infants and Children (WIC) program. pened in late 1995 to early 1996, when U.S. House Republicans this week levels in the short term as their initial (See “Obama releases fiscal 2012 budget political fighting over the budget led to a worked to craft a temporary government proposal does in the long term.” proposal” in last week’s issue of Cheese government shutdown during President funding bill to keep the government Summers is referring to a Continuing Market News.) Clinton’s first term, IDFA says. open for two weeks after the deadline Resolution (CR) recently proposed by According to the International Dairy House Speaker John Boehner, R- expires next Friday, but Senate Demo- the House that would fund the govern- Foods Association (IDFA), despite this Ohio, says he has been meeting with crats have said they will not agree to ment from March 1 until the end of public stalemate, congressional leaders newcomers in the House Republican the measure, which includes about fiscal year 2011 on Sept. 30. U.S. Rep. of both parties have been hinting at caucus to convince them that the CR $4 billion in spending cuts. Rather, Hal Rogers, R-Ky., earlier this month the details of negotiations taking place is necessary to keep the government Democrats want to keep funding at announced a partial list of 70 spend- behind closed doors. running, even though it likely will not in- current levels. ing cuts that would be included in the While publicly leaders of both parties clude $60 billion in cuts, IDFA says. CMN USDA data show number of U.S. dairy farms declined in 2010, falling to 62,500 operations WASHINGTON — The number of dairy percent of the nation’s milk in 2009. cows climbed by 20 to 760 such opera- category of dairies in 2009. NASS says operations in the United States con- In 2010, 30.5 percent of the nation’s tions in 2010. These dairies produced dairies with 2,000 or more cows were tinued its decline in 2010, falling from cows were found on operations with 32.5 percent of the nation’s milk in home to 30.8 percent of the nation’s 65,000 operations in 2009 to 62,500 199 or fewer cows, compared to 32.1 2010, 1.3 percent more than did this dairy cow inventory in 2010. CMN operations in 2010, according to recent percent in 2009. data released in USDA’s National Ag- Meanwhile, the number of dairies ricultural Statistics Service’s (NASS) with 200-499 cows climbed by 150 Dairy exports in Wisconsin increase “Farms, Land in Farms, and Livestock to 4,000 operations in 2010. These 28 percent in 2010 to $213.4 million Operations 2010 Summary.” operations represent 12.7 percent The declines continue to be seen of the nation’s 2010 milk production MADISON, Wis. — Wisconsin ag- food” including ingredients, sauces, in the small farm categories while and were home to 12.8 percent of the ricultural exports increased by 36 yeasts, soups and mustards; baking- the number of herds with 200 or more nation’s cows. percent to $2.41 billion in 2010, a related exports; miscellaneous grain cows increased in 2010. There were 1,720 operations with record high, according to a recent re- seed; and fruits. NASS reports the number of farms 500-999 cows in 2010, up 20 from the port from the Wisconsin Department Total Wisconsin exports in 2010 with one to 29 cows fell from 20,400 previous year. These dairies, accord- of Agriculture, Trade and Consumer increased 18 percent to $19.78 billion. operations in 2009 to 20,000 opera- ing to NASS, represent 13.0 percent Protection and the Wisconsin Depart- Industrial machinery continues to be tions in 2010, while the number of of 2010 U.S. milk production and 12.6 ment of Commerce. Wisconsin’s top manufacturing export operations with 30-49 cows fell from percent of the nation’s dairy cow Cereal grains comprised the commodity, growing by 13 percent to 11,500 to 11,000 operations between inventory. most exports with a 112-percent $6.3 billion. 2009 and 2010. Operations with 50-99 The number of dairies with 1,000- increase to $515.9 million. Dairy- “I salute Wisconsin companies for cows fell from 17,300 to 15,500, and 1,999 cows climbed by 10 to 920 related exports ranked second aggressively seeking new markets operations with 100-199 cows held operations in 2010. These operations among Wisconsin’s exports with a around the globe,” says Wisconsin steady at 8,600. represent 15.5 percent of 2010 U.S. 28-percent increase from 2009 to Gov. Scott Walker. “As governor, I’m Operations with 199 or fewer milk and 13.3 percent of 2010 dairy $213.4 million. committed to doing all I can to sup- cows produced 26.3 percent of the cow inventory. Rounding out the top five Wisconsin port a climate that encourages suc- nation’s milk in 2010, down from 28 Operations with 2,000 or more exports for 2010 were “miscellaneous cess for our exporters.” CMN

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For more information circle 2 on the FAST FAX form on page 32. For more information circle 3 on the FAST FAX form on page 32. Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 6 CHEESE MARKET NEWS® — February 25, 2011 NEWS/BUSINESS New Zealand’s University of Otago study links school milk to reduced risk of bowel cancer DUNEDIN, New Zealand — Research- The researchers say they believe the significantly reduce the risk of bowel and director of the Hugh Adam Cander ers at New Zealand’s’ University of Otago calcium provided by the free milk-in- cancer in future generations,” says study Epidemiology Unit at the University of recently published a study that suggests schools program from 1937-1967 may be author Brian Cox, associate professor Otago Medical School. CMN regular consumption of school milk responsible for the dramatic reduction significantly reduces the risk of bowel in risk of bowel cancer that has occurred cancer in adulthood. in New Zealand for people born between The study, published in the American 1938 and 1953. They note studies in adults EVENTS Journal of Epidemiology, found that have suggested that calcium consump- the risk of bowel cancer was 30 percent tion may reduce bowel cancer risk. lower in people who drank school milk “The research team is currently University of Nebraska-Lincoln to host daily. The reduction in risk was greatest planning further research which, if conference for small food manufacturers in those who drank 1,200 or more half- funding can be obtained, could confirm pint bottles of milk while in school. that the provision of milk at school can OMAHA, Neb. — The University of He will discuss proper use and misuse Nebraska-Lincoln’s Food Processing of allergy statements, allergy advisory 3-A certificate data now available online Center will hold its National Small Food statements and “free-from” statements Manufacturer Conference May 23-24 in on food packaging. MCLEAN, Va. — 3-A Sanitary Standards licensees is searchable by: Omaha, Neb. Additional session topics include Inc. (3-A SSI) now offers online access • Standard number/Equipment type Keynote speakers will include Jona- “What Can Social Media Do for Your to all information listed on current 3-A — All of the licensees under a specific than Miller, who will present “Swimming Company?” “How to Succeed at Trade Symbol authorization certificates. standard number or type of equipment with the Sharks!” Miller is president Show Exhibiting,” “Food Safety Systems For the first time, the public can are available in alphabetical order by of Element Bars Inc., Chicago. He was for the 21st Century” and “Understand- use the searchable database to find a company name. featured on an episode of ABC’s Shark ing FDA Regulations.” complete list of specific models/names • Company name — A list of all Tank, and will discuss how he survived The registration fee is $199 if regis- authorized to display the 3-A Symbol for licenses or certificates is available by swimming with the sharks and the end tered before April 1 and $249 thereafter. more than 500 licenses. company name. result for his business. The registration deadline is May 15. According to the company, the public • Authorization or certificate number Steve Taylor also will present “Is It Space is limited and early registration information on 3-A licensees is important — The unique number that is assigned Possible to Say Too Much?” Taylor is a is encouraged. because it shows all equipment that to a licensee or certificate. professor in the Department of Food For additional information, con- conforms to 3-A Sanitary Standards for The search feature allows the Science and Technology and director of tact Jill Gifford at 402-472-2819, dairy and food processing equipment. user to print a copy of the sam- the Food Allergy Research and Resource e-mail: [email protected] or visit Certificate data for all 3-A Symbol ple certificate of interest. CMN Program at the University of Nebraska. www.fpc.unl.edu/nsfmc. CMN

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For more information circle 4 on the FAST FAX form on page 32. For more information circle 5 on the FAST FAX form on page 32. Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com February 25, 2011 — CHEESE MARKET NEWS® 7 NEWS/BUSINESS DSM introduces new company brand, logo ‘Nutrition Keys’ labeling system launched HEERLEN, Netherlands — Royal PHOENIX, Ariz. — Several food and fact-based, simple, easy-to-use format. DSM N.V., a global life and materials beverage manufacturers and retailers The icon will inform consumers about sciences company, this week intro- recently launched “Nutrition Keys,” a how the key nutrients in each product duced a new logo and company brand, new voluntary front-of-pack nutrition fit into the diet as part of the federal “Bright Science. Brighter Living.” The labeling system. The Nutrition Keys government’s daily dietary advice. new brand is symbolic of the transi- program was developed in response The Nutrition Keys icon on some tion to the “new” DSM, according to ing with a triple bottom line of people, to a request from First Lady Michelle product also will display information company officials. planet and profit) and fits with the Obama in March 2010. The boards of about “nutrients to encourage,” such as DSM notes that as the transforma- DSM mission to create brighter lives directors of the Grocery Manufacturers potassium, fiber, vitamin A, vitamin C, tion of the company from a chemical for people today and generations to Association (GMA) and Food Marketing vitamin D, calcium, iron and protein. company into a life sciences and come, Sijbesma adds. Institute (FMI) adopted a joint resolu- Companies will begin to place the materials sciences company active “With the portfolio restructuring tion in support of the Nutrition Keys icon on their products in 2011 accord- in health, nutrition and materials is completed, with our new strategy that initiative at their Jan. 23 joint board ing to seasonality and production complete, a new corporate brand is focuses on growth, with the culture meeting. schedules. Consumers will begin to a logical step. change on the road, and with our One “Food and beverage companies see the Nutrition Keys icon on prod- “It demonstrates very clearly — to DSM philosophy, this is the time to have a strong track record of provid- ucts in the next few months, and the customers, suppliers, shareholders, mark the new DSM, internally and ing consumers with the products, tools number of products that carry the the communities in which the com- externally,” Sijbesma says. and information they need to achieve icon will continue to grow throughout pany works as well as to DSM employ- With the new brand comes a and maintain a healthy lifestyle, and the year. ees — that DSM has turned a page,” new logo. The new logo conveys this program represents a significant To build consumer awareness and says Feike Sijbesma, chair and CEO brightness, and the mix and overlay milestone in our ongoing effort to help promote use of the icon, food and of the DSM managing board. of colors represents the diversity consumers construct a healthy diet,” beverage manufacturers and retailers Sijbesma says the new brand is a of DSM employees and the unique says Pamela G. Bailey, president and have agreed to support the change reflection of the overall positioning combination of DSM global talents CEO, Grocery Manufacturers Associa- with a widespread consumer education of the company. It stands for the DSM and technologies, working together tion (GMA). campaign. Participating manufacturers strategy, DSM culture and the way to create innovative and sustainable The Nutrition Keys program will and retailers will initially invest at least DSM wants its employees to work solutions in a variety of businesses, place nutrition information such as $50 million in an advertising, public together. Sijbesma says. calories, saturated fat, sodium and total relations and in-store marketing cam- In addition, it represents the For more information, sugars content on the front of packages. paign aimed at those who serve as the company’s sustainability value (work- visit www.dsm.com. CMN The information will be presented in a primary shopper for their family. CMN

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Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 8 CHEESE MARKET NEWS® — February 25, 2011 NEWS/BUSINESS Raw milk processing classes discontinued MONTPELIER, Vt. — Classes on pro- can be sold.” cessing raw dairy products held by the The letter adds that the classes advocacy group Rural Vermont have encourage farmers to break the law by   been suspended after the group received selling milk to be processed to unlicensed a notice of warning from the Vermont persons. Food Safety and Consumer Protection Rural Vermont says it has been hold- Division. ing these popular classes since 2009. The The warning letter dated Feb. 10 says group says not wanting to place farmers at the classes violate the state law that risk, it has put the classes on hold while
 limits the sale of raw milk to the end us- pursuing discussions with state officials  ers for fluid consumption only. The law and waiting until it has a solid understand-  also requires that a person in the dairy ing of the agency’s official policy.  processing business must hold a valid “Rural Vermont believes that the milk handlers license. Agency of Agriculture should be engaging 
           “Cheese distributed in commerce farmers in ways to expand markets,” the (served to the class) would fall into that group says in a statement on its website.  category,” the letter states. “Also raw “Vermont should focus on achievable   milk cheeses need to age at least 60 days steps to meet the demand for safe, healthy     under specific conditions before they local food and farm products.” CMN       Mexican processors commit to Process Expo     MCLEAN, Va. — The Food Process- of FPSA and president of Weber Inc.   ing Suppliers Association (FPSA) “Their members are the top decision has reached an agreement with the makers at some of the most promi-      Mexican National Chamber of Food nent food processing companies in  Processors (Cámara Nacional de la Mexico, and as such, they are one  Industria de Conservas Alimenticias of the most important groups in at-  or CANAINCA) to support Process tendance at Process Expo. We look     Expo 2011, to be held Nov. 1-4 in forward to once again hosting their Chicago. delegation.”
        As it has done throughout the Armando Cobos, executive direc-              previous 15 years, CANAINCA will tor, CANAINCA, also notes that the       promote the biennial tradeshow to chamber’s partnership with Process its member companies and bring Expo has generated special opportu- a delegation to Chicago. In addi- nities for its members. tion, CANAINCA will help develop Registration for Process Expo the educational programming for 2011 now is open. Companies inter-       
 the fruit and vegetable track of the ested in exhibiting should contact   
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! "' $'  ( ) ' **+', - ... ) ' **+' Seminario de Innovaciones, Process Grace Cular Yee, FPSA director of  Expo’s day-long seminar for Latin sales at [email protected]. American attendees on Oct. 31. A complete list of exhibitors  “CANAINCA has long been an im- and the updated floor plan for portant partner of FPSA and Process Process Expo 2011 can be found For more information circle 7 on the FAST FAX form on page 32. Expo,” says Scott Scriven, chairman at www.myprocessexpo.com. CMN GMA creates Advanced Process Technologies Inc. a new division Complete Systems U Complete Solutions WASHINGTON — The Grocery Manu- Complete Satisfaction facturers Association (GMA) recently announced it has created an Industry Affairs and Collaboration division as part of a restructuring process aimed at enhancing member services and organizational efficiencies. The new division takes the place  51 ( ,5&0 5 of the former GMA Industry Affairs, 55)25  Membership Services, and Meetings )%.)555   divisions. The staff of each of these )&&5, 55    former groups have been assigned to  &5    new roles under the Industry Affairs 25  and Collaboration banner.

'$&55*.*.$()' The Industry Affairs and Collaboration division will continue to support GMA’s  -$. 55111*.$()' focus on product safety, health and nutri- 5/$& -5-3-. '-5.#.5"$0 5)/,5/-.)' ,5)* ,.$)(&5$(. ",$.35( 54(" ,.$*5)(.,)&5/,5. '5 tion, environmental sustainability and )!5*,) --5' #($&5 & .,$&5( 5-)!.1, 5 ("$( ,-5, . 5/-.)'5 +/$*' (.5 -$"(-5 .#.5().5)(&35 &$0 ,5/.5 2 5)/,5/-.)' ,-
5-* $45( -5( 5 2* ..$)(- global commerce, with a special emphasis on facilitating industry collaboration and s3PECIALTY4ANKSs#USTOM#HEESE%QUIPMENTs(EAT#HAMBERSs3TRAINERS efficiency on these and other matters. The s!DVANCED#ONVEYOR"ELTSs#USTOM$RYERSs&LOOR$RAINSs-UCH -UCH-ORE
group also will work cross-functionally to help identify and execute opportunities for business development and to provide For more information circle 8 on the FAST FAX form on page 32. service to the GMA membership. CMN

Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com February 25, 2011 — CHEESE MARKET NEWS® 9 NEWS/BUSINESS Pizza Hut Inc. announces plans to create model markets in New Orleans, Baton Rouge DALLAS — Pizza Hut Inc. last month business and will stimulate economic optimum locations and is beginning to mitted to rehiring former employees as announced a plan to create model mar- development.” build new restaurants in these new loca- the new restaurants come on line. kets in New Orleans and Baton Rouge, Pizza Hut currently is in a legal dis- tions. Once the restaurants are opened “We are pleased and honored to part- La. The two cities will become flagship pute with Larry Lundy, a former franchi- and operating, Pizza Hut will work with ner with Pizza Hut as they revitalize New markets for the company as it invests see for these two markets who operated the National Urban League to seek a Orleans and Baton Rouge with a signifi- $10 million or more over the next 18 44 Pizza Hut restaurants in Louisiana new franchisee for the markets. In the cant investment in the community and months to establish state-of-the-art before his franchise agreement was short term, displaced employees will be conduct extensive employee training, restaurants to serve the community. terminated earlier this year. offered job counseling, training, career job counseling and placement,” says The company is working in partnership Pizza Hut says in a statement, “The placement and other forms of assistance Marc H. Morial, president and CEO, with the National Urban League and the owner was unable to meet certain by the Urban League of Greater New National Urban League. Urban League of Greater New Orleans financial obligations to federal, state Orleans, which also serves the Baton “Pizza Hut’s investment is an to help with renewal and economic and local taxing authorities, and also Rouge market. additional shot in the arm to re- development. left other corporate obligations unpaid. Pizza Hut has committed to spend $1 vitalize New Orleans and Baton “Pizza Hut is totally committed to As a result, the franchised Pizza Hut million with the National Urban League Rouge, and will help create jobs and making our restaurants in New Orleans restaurants in these two markets have and the Urban League of Greater New stimulate the economy,” says Nolan and Baton Rouge the best in the country. closed and will not reopen.” Orleans for this training and counseling. Rollins, president and CEO, Urban We will build brand new restaurants over Pizza Hut Inc. has started identifying Long-term, the company says it is com- League of Greater New Orleans. CMN the next 18 months, replacing all exist- ing restaurants with state-of-the-art facilities to best serve our customers,” says Scott Bergren, president, Pizza  Hut. “We are very pleased to partner with the national Urban League and  believe our investment is both good Pizza team trials to be at Wisconsin Restaurant Expo MILWAUKEE — The U.S. Pizza Team Trials will be held during the 2011 Wis- consin Restaurant Expo March 21-23 in Milwaukee. According to event coordinators, the U.S. Pizza Team is comprised of the best pizza artists, pizza throwers, fastest pizza makers and largest dough stretchers in the country. The team demonstrates and competes in pizza    events throughout the nation and in- ternationally.  The Wisconsin Restaurant Expo will host three days of competition activity 
  to determine who will be the newest additions to the team. Two winners from the expo’s competition will advance to  become part of the team and compete in Rome at an International Pizza Competition.  Events will include:  • Largest Dough Stretch — Contes-  tants have five minutes to stretch out a large dough ball as big as they can.  Arms, legs, and head are allowed, but no rolling pins.  • Fastest Pizza Maker —This is a race  to stretch out five dough balls as quickly as possible. No sauce or cheese required. • Freestyle Acrobatics — Con-  testants perform an acrobatic dough  tossing routine to music, incorporating  tricks such as over the shoulder, under  the leg, and behind the back.  • Boxfolding — Contestants race  against the clock to fold five pizza boxes. • American Pizza Championship — Pizzas are judged on appearance, taste and viability. The expo offers the last chance in     a national series of qualifiers to earn a ' ( )** (    
    !"#  +" ,% 
-,.  /"0 spot on the team. The U.S. Pizza Team $$$% & &% % $$$ &, % Trials event is presented in partner- ship between PMQ Magazine and the 2011 Wisconsin Restaurant Expo. CMN For more information circle 9 on the FAST FAX form on page 32. Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 10 CHEESE MARKET NEWS® — February 25, 2011 NEWS/BUSINESS Dairy producers work with pizza companies to revitalize pizza category, cheese sales ROSEMONT, Ill. — Dairy producers period in 2009. 2010, and, according to DMI, Domino’s national promotion, DMI says, noting continue their efforts to revitalize the In addition, according to data from supply chain says its cheese sales in- this type of support will continue in pizza category through partnerships the NPD Group, a market research creased more than 20 percent in 2010 2011 and drive additional sales. with Domino’s Pizza and other chains, firm, pizza servings in the quick-ser- vs. the previous year. In 2011, dairy producers will con- including Pizza Hut, according to vice restaurant (QSR) pizza category Also in 2010, Domino’s worked with tinue to invest in Domino’s efforts to Dairy Management Inc. (DMI), which increased by 4 percent in 2010 vs. the the dairy checkoff to introduce the new- develop dairy-centric items through manages the national dairy checkoff previous year; the positive growth est addition to its American Legends activities including market research program. reverses a downward trend of the line, the Wisconsin 6 Cheese pizza, and culinary support. According to DMI, pizza remains a previous 4-5 years. which features Mozzarella, Provolone, In 2010, national local dairy critical sales driver for dairy produc- Noting its work with Domino’s, DMI Cheddar, Feta, Parmesan and Asiago checkoff staff also worked with ers because more than 25 percent of says in the first three quarters of 2010, cheeses. DMI notes this is the only Domino’s to increase distribution all cheese is used on pizzas. Domino’s same-store sales results were new product Domino’s introduced to of Domino’s Smart Slice throughout DMI notes that dairy producers’ 14.3 percent, 8.8 percent and 11.7 per- its menu for the 2010 year. U.S. schools. The line of pizzas uses investment in the pizza category cent higher than the prior year, accord- In 2010, the dairy checkoff also reduced sodium and reduced-fat has resulted in 1.9 billion pounds of ing to Domino’s earnings results. supported Domino’s two carryout Mozzarella and features whole-wheat incremental milk use for the period of According to NPD data, Domino’s promotions, requiring nearly 20 mil- crust and other reduced-fat and re- January-November 2010 vs. the same pizza servings increased 16 percent in lion pounds of milk for each weeklong duced-sodium toppings. The Smart Slice lunch program is active in more than 120 school districts and 1,100 schools nationwide. DMI says Turn to REVITALIZE, page 11

XLT Ovens teams THIS COULD BE up with Domino’s to set speed record THE START for baking pizzas

We believe in supplying solutions for cheese and whey production, WICHITA, Kan. — XLT Ovens recently not just outstanding machinery, so we see each project as a announced that a Domino’s Pizza dealer in Findlay, Ohio, produced 206 beginning – of our total commitment to enabling you to run medium cheese pizzas in an hour using trouble-free. With optimized product quality and minimized one of its ovens, setting a new world costs. To assure you sustainable profitability. record for the number of pizzas baked Tetra Pak’s approach to service is both long-term and in one hour. Domino’s franchise owner Brian pro active. And, you’ll find that we have a track record to Elder broke the previous Guinness prove it. Why not get in touch with us today? We’d like to World Record of 168 pizzas during a show you how we can put our expertise and experience Domino’s 50th anniversary event that to work for you. took place Dec. 9. Elder, who trained for three months for the event, also has competed several Just phone George or one of our times with the U.S. Pizza Team at the sales engineers at 320 485 4401 World Pizza Championship in Italy and or send an email to has won the title of fastest pizza maker at several national and international [email protected] competitions, according to the Toledo Blade, which originally reported the record-setting event. Proceeds from his pizza sales were donated to the United Way of Hancock County and the City Mission of Findlay. “XLT’s ovens are again making his- Tetra Pak, and PROTECTS WHAT’S GOOD are trademarks belonging to the Tetra Pak Group. tory,” says Peter Goodman, XLT vice president of sales. Wolfe Electric, the parent company m. a Pak tea of XLT Ovens, was founded in the e Tetr of th part mid-1940s by Roy Wolfe. The four-gen- er – amm eration company first manufactured ingh hw Sc consumer and commercial fan systems rge Geo and refrigeration products. In the 1980s, Wolfe Electric began refurbishing ovens for a major pizza chain, quickly learning the strengths and weaknesses in oven design. This experience became the foundation for the expertise that goes into every oven the company manufactures today, company officials say. For more information on XLT, call 888-443-2751 or vis- For more information circle 10 on the FAST FAX form on page 32. it www.xltovens.com. CMN Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com February 25, 2011 — CHEESE MARKET NEWS® 11 NEWS/BUSINESS

REVITALIZE Kraft expands deployment of EPS Corp.’s xChange Point system Continued from page 10 COSTA MESA, Calif. — EPS Corp., according to Diane Wolf, global vice as carbon emissions. The software as a in 2011, dairy producers will continue an energy intelligence company based president of safety and environmental service solution provides an enterprise- to support Domino’s sales and mar- here, this week announced that Kraft sustainability, Kraft Foods. wide view of sustainability and production keting efforts to expand the program Foods Inc. is expanding the deployment “Achieving continual reductions in metrics that can help curtail costs while in school lunch and summer feeding of EPS’ xChange Point real-time energy energy use and carbon emissions at our improving sustainability at facilities opportunities. management and carbon reduction manufacturing facilities is a top strategic across the company, making it a power- The dairy checkoff also is working solution to all of the manufacturing priority for Kraft Foods,” Wolf says. “We are ful solution for leading global companies with Pizza Hut to grow sales growth facilities in its Grocery Business Unit. pleased with the results that xChange Point to understand and reduce their energy, through various cheese-centric prod- The decision by Kraft to roll out already has delivered to our Grocery Busi- water and carbon profiles, according to ucts and promotions, DMI notes. xChange Point to additional sites ness Unit and by rolling it out to the rest of Jay Zoellner, CEO, EPS Corp. Last fall, Pizza Hut launched a new was based on the success of its initial the unit’s manufacturing facilities, we see “This is especially rewarding for premium “Big Italy” pizza that used 50 implementation in one facility. The test it as a key tool to help us reach and exceed us because Kraft Foods is not only a percent more cheese than an average yielded significant savings opportunities our corporate sustainability goals.” leader in the food industry, but also in 16-inch round pizza. as well as the desire to accelerate further EPS’ xChange Point system uses sustainability,” Zoellner says. “We are Just last month in time for the Super reductions in the Business Unit’s energy real-time, enterprise-wide data, together very confident about the ability to further Bowl, Pizza Hut introduced the Big Dip- use and carbon emissions as part of the with recommendations by EPS experts, advance their sustainability successes per, nearly 2 feet of pizza cut into 24 company’s global sustainability efforts, to reduce energy and water use as well with this rollout of our solution.” CMN strips for dipping into marinara. The company also countered com- petitive pricing in 2010 with $6 medium pizzas in December and continued that pricing with “Big Mondays” in January, Family owned and operated during which customers can get a me- dium pizza with up to three toppings so we can treat every when you buy 2 for $6. DMI says Pizza Hut has started off 2011 with a focus on cheese, customer like family! and this, as well as its partnership with the dairy checkoff, will con- tinue throughout the year. CMN New promotion from Domino’s to feature chicken products ANN ARBOR, Mich. — For the first time since 2002, Domino’s Pizza is launching a national promotion around its chicken products. Available for delivery and carry-out, the newly revamped chicken products include boneless chicken and wings ac- companied by a new national campaign that shares the story of an “unlikely, hopeful hero” within the Domino’s test kitchen. “We want to continue innovating, and reinventing our menu and brand, and our new chicken is the next chap- ter of our story,” says J. Patrick Doyle, Domino’s Pizza president and CEO. “Not 
 U   U U   only are our new boneless chicken and wings much improved based on custom- er feedback, but we are again opening With over 150 years of combined experience in the our doors and letting consumers see the cheese and dairy industries, we can accommodate all real people behind the real story talk of our customer’s needs. about how this came about.” The “real person” behind the story s Specializing in Both Substitutes and Blends of Real Cheese s Can Efficiently Ship Most Orders Within 24 Hours is Tate, which Domino’s describes as a s Custom Formulations to “Solve Your Problems” secluded chicken chef within a pizza s Lower Cost and Longer Shelf Life company. Tasked with an opportunity to s On-Site Laboratory to Ensure a Comprehensive Q/A Program execute the reintroduction of a product s All Manufacturing and Further Processing Under One Roof not often at the forefront of the minds of Domino’s customers, Tate’s story is the Small to large batch production offering consistent quality highlight of a campaign designed to take and quick turnaround times with a support network you can trust to run your business more profitably! consumers through the challenges and CASTLE CHEESE, INC. triumphs of leading such a project. 2850 Perry Highway | Slippery Rock, PA 16057 Call Michelle Myrter Offering: Beginning March 2, coinciding (800) 252-4373 | (724) 368-3022 with the start of the TV campaign, FAX (724) 368-9456 or Lyn Moore today to UÊÓ䇏L°Ê œVŽÃ consumers will be able to provide their email: [email protected] discuss your needs and UÊx‡L°Êœ>Ûià Website: www.castlecheeseinc.com place your order. feedback on the new chicken, as well as UÊ7i`}iÃÊEÊ iˆÊ Õ«Ã view the full documentary about Tate by visiting more.dominos.com. CMN For more information circle 11 on the FAST FAX form on page 32. Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 12 CHEESE MARKET NEWS® — February 25, 2011 NEWS/BUSINESS New study finds actual sodium content may vary from what is on manufacturers’ labels ROSEMONT, Ill. — A new cheese study cheese form (for example, shredded or Kirtley, vice president cheese research, partnership with industry to establish — which was designed to determine the string) and differences from sample to development and quality for Kraft best practices in cheesemaking process differences between analytical sodium sample. Cheeses analyzed include the Foods, and member of the Health and controls that minimize variability and and label sodium as well as identify areas most commonly consumed cheeses Wellness Committee for the Innovation improve manufacturers’ ability to re- for the industry to adopt best practices — Cheddar, Mozzarella and process Center for U.S. Dairy. “The industry duce the sodium content of cheese. — was initiated after the Innovation cheese. will continue to use the findings to “While cheese contributes less Center for U.S. Dairy Health and Well- In addition, study results indicate develop guidance and support to help than 8 percent of the sodium in the ness Committee identified the need for a manufacturers tend to be conservative manufacturers put this information into U.S. diet, the Dairy Research Institute large, independent, blinded retail analy- with reporting higher sodium levels on action for better process controls that and our industry partners continue to sis of the sodium content in cheese. It the label, as analytical levels are most will allow for consistently lower sodium investigate process improvements and was spearheaded by the Dairy Research commonly below the label declara- and improved quality.” solutions that industry can employ to Institute and published online prior to tion, but within allowable reporting On behalf of the Innovation Center help Americans manage their sodium print publication in the March issue of standards. for US Dairy, the Dairy Research Insti- consumption,” says Gregory Miller, the Journal of Dairy Science. “These research findings already are tute says it administers cheese research president, Dairy Research Institute and The study found that sodium levels being used to develop industry-adopted efforts — such as addressing cheese executive vice president, National Dairy vary among cheese types as well as with- best practices to minimize variability and sodium — to help industry meet Council. “To move forward with goals to in different brands of the same cheese in sodium content, which then needs consumers’ health and wellness needs. reduce sodium in cheese or attempt to type. There also are variations based on to be reflected in labeling,” says Nigel The two organizations are working in meet arbitrarily predetermined target levels, the industry must determine where sodium levels currently stand through benchmark studies.” According to according to Bill  Graves, senior vice president of product research, Dairy Research Institute, the analysis shows that difficulties in achieving uniform salt distribution  in commercial settings stems from a variety of factors. “To date, research does show a number of approaches available to  improve consistency, including greater formalization of cheesemaking steps and operations, improved design of equipment for uniform curd distribu- tion and block forming, and improved quick and easy testing methods to check sodium levels during production,” Graves says. “Continued evaluation of best methods to reduce sodium and establish process controls are underway with cooperation among universities  and dairy industry partners.” CMN Gatti’s opens Texas  pizza location again   AUSTIN, Texas — Mr. Gatti’s LP has an-  nounced the re-opening of its Belton, Texas,   location under a new franchise agreement with Papanana Enterprises Inc.   New owner Glenn Deringer is rejoin- ing the Gatti’s Pizza franchise family.   After getting reacquainted with the Gatti’s brand and undergoing a training   program offered by Gatti’s Corporate Support Center, Deringer re-opened the Belton location last month.                “We are thrilled to bring a new level of           excitement to Belton,” says Mike Mrlik,            CEO, Mr. Gatti’s, LP. “We are excited to  have Glenn Derringer, as he will provide a family-friendly atmosphere with a one-of-a-kind experience filled with food that comforts your soul. People still have

    incredibly fond memories of the brand. Before we even opened, customers were  anxiously anticipating the re-opening.” Mrlik notes that by the end of the company’s fiscal year in April, Gatti’s  will have 130 restaurants in 11 states.  Through its Gatt’s Pizza and Gat- tiTown locations, Mr. Gatti’s LP offers   dine-in, pick-up and delivery options at each of its stores throughout the South- For more information circle 12 on the FAST FAX form on page 32. west, Southeast and Midwest. CMN Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com February 25, 2011 — CHEESE MARKET NEWS® 13 NEWS/BUSINESS Papa Murphy’s named a top food franchise Lactalis Foodservice brings Galbani to U.S. VANCOUVER, Wash. — Papa Murphy’s Papa Murphy’s, based in Vancouver, BUFFALO, N.Y. — Lactalis Food- come to know and love and that we know Take ‘n Bake Pizza this week announced Wash., is the fifth-largest pizza chain service recently announced that the our customers will embrace.” it was named to Franchise Business in the country and the “pioneer” of popular Italian cheese brand Galbani Galbani was founded in 1882 by Egi- Review’s list of top food franchises for the take ‘n bake pizza segment, the now is available in the United States. dio Galbani, whose passion for crafting 2011 based on high satisfaction ratings company says. Additionally, 27 of the best-performing fine Italian cheese was widely recog- in a survey of its franchise owners. Papa Murphy’s notes that, as in cheeses from Lactalis Foodservice now nized. Lactalis officials say applications Eric Stites — president and CEO of years past, it outscored the average of are being distributed under the Galbani for Galbani Mozzarella are limitless, Franchise Business Review, a national all other food industry participants in label, including cheeses from Sorrento, as it was born to stretch, melt, blend franchise market research firm — notes all categories. Prima Cucina and Mozzarella Fresca. and brown with amazing proficiency. that many of the award-winning compa- “For the franchisee-franchisor rela- “We are extremely pleased to be Galbani Fresh Mozzarella is best known nies have maintained great satisfaction tionship to be successful, it needs to be able to offer premium Galbani brand for its creamy, white appearance, firm scores throughout the recession and a true partnership where each party re- cheese to chefs and operators coast to body and smooth texture, as well as only continue to improve. spects and trusts the other during both coast,” says Tim Wellenzohn, market- its milky flavor and superb application “It’s very telling when you see a the good and bad times,” says John Barr, ing manager, Lactalis Foodservice. performance, Lactalis officials add. franchisor with impressive franchisee CEO, Papa Murphy’s. “I’m very proud of “Our unparalleled Italian cheese of- Other products from Galbani include satisfaction even when the economy is the relationship we have with our fran- fers the uncompromising standards of Mascarpone and Ricotta. struggling,” he says. chise partners and am pleased to see quality and authenticity, from flavor to For more information, visit The survey asked franchise owners that they feel the same about us.” CMN application, that Italians have already www.lactalisfs.com. CMN 33 benchmark questions relating to the franchisee’s experience and satisfaction as well as market area, business lifestyle and other demographic questions. Danisco announces global expansion of Yo-Mix cultures COPENHAGEN, Denmark — Follow- ing success in China, the Middle East and North Africa, Danisco says it is expanding its Yo-Mix yogurt cultures globally. The yogurt cultures are designed to meet the need for a culture that produces only mild acidification during storage. Company representatives note acidification has been seen as a major issue throughout the world for yogurt producers, as the yogurt will have a dif- ferent sensory profile at the beginning and end of its shelf life. Company officials also say this can be a problem in areas such as Asia, North Africa, the Middle East and South America, where cold storage and cold chains are less controlled and often broken. With a combination of careful strain selection and process “know-how,” Danisco’s Yo-Mix yogurt cultures can produce yogurt with low past-acidifica- tion in different processing and storage conditions. “Yo-Mix can now produce yogurt with a very pleasing flavor, a high level of viscosity and short texture, with limited post acidification under a wide range of temperature conditions, which has definitely contributed to its customer success since launch,” says Sonia Hup- pert, Yo-Mix global business director. “The plans for expansion into different countries are progressing very well and Award-winning, all-natural cheese
 
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     nisco.com or Sonia Huppert, Yo- Mix global business director, at so- [email protected]. CMN For more information circle 13 on the FAST FAX form on page 32. Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 14 CHEESE MARKET NEWS® — February 25, 2011 NEWS/BUSINESS Italian cheese Piacentinu Ennese is 1,000th name registered by European Commission BRUSSELS, Belgium — Piacentinu and supplemented by fodder hay, straw ity to Europe’s quality products and includes product names that guarantee Ennese, a protected designation of and wheat stubble. The cheese owes valorise agricultural traditions and the traditional character, either in the origin (PDO) sheep’s milk cheese from its specificity to the use of saffron, the rural heritage,” says Dacian Ciolos, composition or means of production Italy, recently became the 1,000th pastures and the practices of local EU commissioner for Agriculture and but are not linked to any particular name to be registered under the Euro- producers. Rural Development. location. pean Commission’s (EC) agricultural Agricultural products and food- The EU quality registers for ag- The EC currently is discussing a product and foodstuff quality labels. stuffs produced in specific regions or ricultural products and foodstuffs proposal that would strengthen these Piacentinu Ennese PDO is a cheese with specific characteristics have been include PDO, which covers names of schemes. from the province of Enna in Sicily, registered by the European Union since products that owe their characteristics “The EU’s quality schemes are Italy. The compact pressed cheese is 1992. Applications have increased in exclusively or essentially to their place the cornerstone of the Commission’s made from raw sheep’s milk and saf- recent years. of production; protected geographi- Quality Package currently in discus- fron (also from Enna). It comes in a “The 1,000th name registered is a cal indications (PGI), which covers sion in Parliament and Council,” cylindrical shape and tends to be an significant milestone for the quality agricultural products and foodstuffs Ciolos says. “With this proposal we intense yellow due to the saffron pres- schemes. There is still great potential whose reputation or characteristics reinforce the PDO-PGI schemes, in ence. The sheep are grazed on uplands for these schemes that give visibil- are closely linked to production in particular increasing the role and the geographical area; and traditional responsibilities of groups, and breathe specialties guaranteed (TSG), which new life into the TSG scheme.” CMN FAPRI report offers framework on how WTO agreement could affect U.S. farm programs COLUMBIA, Mo. — Market support of “overall trade-distorting support,” it is for dairy could change very little under possible that limits on product-specific a hypothetical World Trade Organiza- support could be more important in tion (WTO) agreement, according to a practice, the FAPRI report says. report recently published by The Food The hypothetical agreement used and Agricultural Policy Research at in the report is based on a “draft mo- the University of Missouri (FAPRI). dalities” paper submitted in December The report, “WTO Domestic Support 2008. The report assumes that an agree- Measures: How Accounting Rules and ment would take effect in 2012 and be Market Circumstances Matter,” details fully implemented before 2018. a framework developed by FAPRI to Under FAPRI’s hypothetical Doha evaluate how a future WTO agreement agreement, total current AMS (aggre- on domestic support policies might af- gate measure of support) commitments fect U.S. farm programs. would be reduced from $19.10 billion The United States and other WTO in 2008 to $12.99 billion in 2013 and members have made commitments to further to $7.64 billion in 2018. Dairy limit various types of support they pro- AMS commitments would be capped at vide their domestic agricultural sectors. $4.67 billion by both 2013 and 2018. As the Doha Round of WTO negotiations In 2008, the United States reported continues, it is unclear what form any a total current AMS of $6.26 billion, far final agreement might take. less than the commitment of $19.10 While public discussion has focused billion. Dairy, sugar and cotton account For more information circle 14 on the FAST FAX form on page 32. on headline indicators such as the level for almost the entire reported support. FAPRI’s projections for total product- specific AMS under a hypothetical WTO agreement and current reporting of crop insurance benefits are $5.39 bil- 

 







  lion for 2014 and $2.99 billion in 2018, representing the average of 500 possible outcomes in the FAPRI-MU stochastic baseline prepared in early 2010. U.S. dairy AMS in 2008 was $3.97 bil- lion, and its projected baseline average
  is $2.99 billion in 2013 and $3.19 billion  
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 trate a number of important issues, )))%! FAPRI says. To read the report, visit www. For more information circle 15 on the FAST FAX form on page 32. fapri.missouri.edu. CMN Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com February 25, 2011 — CHEESE MARKET NEWS® 15 NEWS/BUSINESS ‘Cheese Rules’ online video series teaches viewers about cheese varieties and pairings By Alyssa Sowerwine ity,” he says. “We want to get cheese on Hatch, cheesemaker and general man- going to start up again in March in every plate. It’s great if it’s ours, but ager for Uplands Cheese, says he has Los Angeles, with topics including MADISON, Wis. — Barrie Lynn Krich really we just support the exposure of seen some of the show’s episodes and pairing cheese with coffee and pairing doesn’t just love to eat cheese, she these artisan cheeses.” thinks it’s a great format for cheese cheese with rum. loves talking about it too. Krich also is quick to put out education. “You wouldn’t really think of pair- Krich, known to many as “The that Small Screen Network does not “We’re flattered with any atten- ing cheese with coffee — but then Cheese Impresario,” is an educator on dictate the cheeses she features on tion Barrie Lynn bestows on us,” again, we add other dairy products to all things cheese. A former advertis- the show. he says. it like milk and cream,” she says. ing executive with a love of food and “It’s not an infomercial for Joe Widmer, owner of Widmer’s Krich notes she is interested in wine, her passion for artisanal cheese certain types of cheese or certain Cheese, Theresa, Wis., says “Cheese including all types of cheeses on the came about when she took a client companies,” she says. “We want to Rules” is an “awesome show.” show, and interested cheesemakers to a Slow Food fundraiser and from be authentic and introduce people “Barrie Lynn is very knowledge- can send her an e-mail at blkrich@ there, she decided her mission was to to the world of cheeses available to able and moving up fast as the expert earthlink.net. educate others about the pleasures them.” on educating the public on cheese,” And while cheesemakers have of cheese. Dodgeville, Wis.-based Uplands he says. “I’m always proud of how she not been featured as guests on Now Krich is hosting “Cheese Cheese’s Pleasant Ridge Reserve also works with my cheeses.” the show yet, “it’s certainly some- Rules,” an online video series fea- has been featured on the show. Andy Krich says filming for the show is thing I’m open to,” she says. CMN tured on Small Screen Network at www.smallscreennetwork.com/ cheeserules. The series, which first was shot in Seattle on Oct. 12, 2010, at Chef Kathy Casey Food Studios, features 3- to 5-minute episodes on topics ranging from “How to Store Cheese,” to “To Rind or Not to Rind.” 2(&,$.5:;(/%3$0(4;)13;$,3:;22.,&$5,104 “There’s an element of the joy of discovery when people learn about the diversity of artisanal cheeses — how to entertain with them, how to cook with them and how to pair beverages with them,” Krich says. “Cheese apprecia- tion is much like music appreciation;   $$ once you learn to listen, so much more   $
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4;512; tori Foods, says the company decided '$,3:;4;$0';(92(354;51;'(7(.12;$0';4622.:;$'7$0&('; to sponsor because they believe in what 42(&,$.5:;/(/%3$0(4; the show is doing.  #$ #$  $ "! $  “I met Barrie Lynn about a year ago " ;&&(25('; ;&1/2.,$05 and was impressed with her knowledge $'(;,0;/(3,&$; of cheese and passion to spread the word,” Vincent says. “I think the show is a great way to increase the learning and education for consumers on artisan cheese.” 0017$5,10 Contacts: While some of Sartori’s cheeses #$  $!$ Toray Membrane USA 2+; ; ; !13$:; (23(4(05$5,7(;6312( $" $ have been featured on the show, Vin- 6$.,5: (22.(/$'$.:0513$:/(/&1/ 2+; ;; ; ;  .1%$.;31'6&5;,0(;$0$*(3 cent notes that it is not a motivating 513$:/(/%5&100(&5&1/ ;$0,(.410; 53((5 $$ 92(35,4( 18$:;;  ;2+; ; ;  factor in their sponsorship. 2+; ;  ;  '63+$/.((513$:/(/&1/ “From Sartori’s standpoint, we 5(.,0.((513$:/(/&1/ support the show as a way to help the industry in general gain more visibil- For more information circle 16 on the FAST FAX form on page 32. Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 16 CHEESE MARKET NEWS® — February 25, 2011 NEWS/BUSINESS Next month’s U.S. Championship Cheese Contest will boast 1,602 entries from 30 states MADISON, Wis. — The U.S. Cham- rooted in more than 120 years of history, “We select judges — cheese buyers, and two runners-up. The championship pionship Cheese Contest will be held dating back to the first cheese contest food scientists and licensed graders round will convene March 10. March 8-10 at Lambeau in Green Bay, in 1891. Since 2001, the United States — from across the United States to The contest gained 236 entries this Wis., with the game plan of finding one Championship Cheese Contest has evaluate entries on a strict numeric year, which WCMA says reflects broad U.S. Champion Cheese among 1,602 more than doubled in size (141 percent system,” Aschebrock says. growth in types of cheese produced in contest entries. growth). Before his volunteer service to the United States. Cheesemakers and buttermakers in “Growth in this competition mirrors the contest, Aschebrock was a career “This year, entries of hard cheeses 30 states have submitted products for both a renaissance in artisanal cheese- cheese and butter grader with USDA. made from goat’s milk doubled, aged this year’s contest. Over three days, 26 making and consumers’ growing desire Cheese and butter varieties entered Cheddar entries doubled and the total experts will examine more than 30,000 for new, adventurous cheese varieties in the contest are divided into classes, number of sheep’s milk cheeses more pounds of cheese and butter, accord- and flavors,” says John Umhoefer, execu- with this year featuring a total of 73 than doubled,” Umhoefer says. ing to the Wisconsin Cheese Makers tive director, WCMA. classes for cheese and 3 classes for The competition also includes 50 Association (WCMA), which hosts the According to Robert Aschebrock, chief butter. percent more fresh Mozzarella, 50 contest. In all, 221 locations, from judge for WCMA’s championship cheese On March 8 and 9, judges will work in percent more Gouda, a doubling of soft, farmstead cheese sites to commercial contests, this competition, through de- teams of two, selecting gold medalists in cow’s milk cheeses with added flavors cheese and butter facilities, entered cades of refinement, has set the standard each class. The gold medal cheeses then and 50 percent more pepper cheeses. products this year. worldwide for professional, objective compete in a final championship round WCMA added classes for reduced-so- WCMA notes the competition is evaluation of cheese and butter. to determine one U.S. Champion Cheese dium cheese and reduced-fat and lowfat cheeses, gathering a total of 75 cheeses in these classes. BE A PART OF THE NATION’S LARGEST DAIRY CONFERENCE! The following states sent entries to the 2011 U. S. Championship Cheese Contest: California, Connecticut, Iowa, Idaho, Illinois, Indiana, Kansas, Ken-   
 

tucky, Louisiana, Massachusetts, Mary- land, Michigan, Minnesota, Missouri, Nebraska, New Jersey, New Mexico, New York, Ohio, Oregon, Pennsylvania,   
    Rhode Island, South Dakota, Tennes- see, Texas, Utah, Virginia, Vermont, Washington and Wisconsin. The contest is free and open to the public. In addition to watching the judg- ing in action, visitors to Lambeau Field can sample gold medal cheese varieties from the most recent contest (held in 2009) and watch artist Sarah Kaufmann carve 640 pounds of Cheddar. For more information, con- tact John Umhoefer at 608-828- 4550, e-mail: jumhoefer@ wischeesemakers.org. CMN

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will raise PepsiCo’s annual global revenues from nutritious and func- tional foods from approximately $10 For more information circle 17 on the FAST FAX form on page 32. million to nearly $13 billion. CMN Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com February 25, 2011 — CHEESE MARKET NEWS® 17 NEWS/BUSINESS Saputo reports increased net earnings for third quarter, up 7.2 percent from year prior MONTREAL — Saputo Inc. recently EBITDA for the third quarter in fiscal 2010 as part of the F&A Dairy acquisi- million, up from C$340.2 million during the announced that its net earnings for the USA Dairy Products Sector totaled tion. Saputo says these expenditures should corresponding period last fiscal year. the third quarter, ending Dec. 31, 2010, C$61.4 million, down from C$63.7 mil- improve operational efficiencies. During the third quarter, the Canada totaled C$111.8 million, an increase of lion for the same quarter last fiscal year. The CEA (Canada, Europe and Argen- Dairy Products Division initiated a recall C$7.5 million or 7.2 percent over the Various market factors combined had a tina) Dairy Products Sector revenues for on certain process cheese products that same quarter last fiscal year. Earnings negative impact on EBITDA of approxi- the third quarter totaled C$995.2 million, may have been contaminated with Liste- before interest, income taxes, deprecia- mately C$17 million, while initiatives up from C$960.2 million for the same ria monocytogenes. As a result, Saputo tion and amortization (EBITDA) totaled to increase operational efficiencies and period last fiscal year. Since the begin- stopped production of the affected line. C$190.6 million, up 3.9 percent from the higher sales volumes offset increased ning of the fiscal year, revenues from the The company says corrective measures same quarter last fiscal year. Revenues expenses, increasing EBITDA by ap- CEA Dairy Products Sector have totaled are being implemented, and the produc- for the third quarter amounted to proximately C$15 million compared to C$2.92 billion, up from C$2.87 billion for tion line is set to be recommissioned dur- C$1.54 billion, up 3.0 percent from the the previous year. Since the beginning the same period last fiscal year. ing the first quarter of fiscal 2012 with the corresponding quarter last year. Basic of the fiscal year, EBITDA has totaled EBITDA in this sector for the quarter approval of the Canadian Food Inspec- earnings per share (EPS) were C$0.55 C$200.3 million, up from C$163.2 million ended Dec. 31 totaled C$125.5 million, up tion Agency. Meanwhile, the production and diluted EPS were C$0.54 for the the same period last fiscal year. 8.8 percent compared to C$115.4 million of process cheese product continues in quarter, compared to basic and diluted During the third quarter, the USA Dairy during the corresponding quarter last fiscal another Saputo facility. The company EPS of C$0.50 for the third quarter during Products Sector completed capital expen- year. Since the beginning of the fiscal year, recorded a charge of C$1.9 billion during the previous fiscal year. ditures at the California facility acquired in EBITDA in this sector has totaled C$379.4 the quarter related to this recall. CMN A 7-cent increase in the U.S. aver- age block market per pound of cheese, compared to the same period last fiscal year, contributed to increased revenues and EBITDA by positively affecting the absorption of fixed costs. Revenues for the USA Dairy Products Sector totaled C$510.2 million for the third quarter, up from C$498.1 million for the same quarter last fiscal year. The 7-cent increase in the average block market per pound of cheese compared to the same quarter last year increased revenues by approximately C$16 mil- lion. Additional revenues from a more favorable dairy ingredients market and higher sales volumes increased revenues by approximately C$17 million. The appreciation of the Canadian dollar eroded approximately C$21 in revenues. Revenues since the beginning of the fiscal year have totaled C$1.51 billion in this sector up from C$1.43 billion for the same period last fiscal year. Food Technology Corp. launches upgraded website STERLING, Va. — Food Technology Corp., a supplier of food texture ana- lyzers, has launched a new version of its website dedicated to food texture measurement. The website has been redesigned with an easy-to-navigate layout and an emphasis on providing practical informa- tion for food texture applications. Visitors are provided with information related to their specific industry, such as dairy, grains and bakery, or their specific test method including compression, bulk analysis and shearing. Company officials note this focus means food technologists and quality control personnel can easily assess how best to test their particular food products and ingredients. The site also showcases Food Technol- ogy Corp.’s texture analyzers, tenderom- eters, test cells, fixtures and software. Test cells and fixtures are grouped by test method, which company officials say ensures straightforward selection of the most appropriate test accessory. For additional information, vis- it www.foodtechcorp.com. CMN For more information circle 18 on the FAST FAX form on page 32. Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 18 CHEESE MARKET NEWS® — February 25, 2011 NEWS/BUSINESS Kraft Foods reports growth in fourth quarter results, driven largely by volume/mix gains NORTHFIELD, Ill. — Kraft Foods Inc. percent to $49.2 billion and combined cent and operating earnings-per-share increased 3.3 percent. Kraft’s power recently reported its fourth quarter organic net revenues grew 3.5 percent growth of 11-13 percent in 2011. brands grew approximately 5 percent, and full-year 2010 results, which the from 2009. Net revenues for Kraft Foods North fueled by solid market share gains company says were strong and driven Operating income in the fourth America increased 12.2 percent in across several categories as well as primarily by volume/mix gains in each quarter increased 2.2 percent to $1.24 the fourth quarter, and Kraft Foods’ double-digit growth in Kraft Macaroni geography. billion. Diluted earnings per share in base business organic net revenue & Cheese dinners, Maxwell House cof- Net revenues in the fourth quarter the fourth quarter were $0.31, com- grew 4.1 percent. Revenue increased fee and Planters nuts. Other brands, increased 30.0 percent to $13.8 billion, pared to $0.48 in the fourth quarter in nearly every business segment, the including Philadelphia cream cheese including a 26.2 percentage point of 2009. Operating earnings per share company says. Volume/mix contributed and Kraft Singles processed cheese, impact from the Cadbury acquisi- were $0.46 in the fourth quarter, down 2.4 percentage points of the organic net grew high single digits. tion. Combined organic net revenues slightly from $0.47 in the fourth quarter revenue increase, reflecting benefits Cadbury organic net revenues de- grew 5.7 percent, Kraft Foods’ base of 2009. from higher levels of merchandising clined 6.1 percent. Segment operating business organic net revenues grew Diluted earnings per share for 2010 activity and successful multi-brand income declined 5.8 percent, largely 6.5 percent, and Cadbury organic were $2.39, up from $2.03 in 2009. Oper- marketing campaigns. Pricing in re- due to a steep increase in input that net revenues grew 2.2 percent in the ating earnings per share were $2.02 in sponse to rising input costs accounted more than offset the benefits of higher fourth quarter compared to a year 2010, up from $1.93 the previous year. for the remaining 1.7 percentage points pricing, lower overheads, favorable earlier. The company says it expects organic of the increase. volume/mix and productivity. For 2010, net revenues grew 27.0 net revenue growth of at least 5 per- Combined organic net revenues For Kraft Foods Europe, net rev- enues increased by 28.6 percent. Base business organic net revenue grew 2.2 percent, and net revenues increased in each major category. Cheese grew high single digits, primarily reflect- ing a successful marketing campaign and new product launches of Phila- delphia, the company says. Combined organic net revenues increased 1.6 percent, Cadbury organic net revenues were essentially flat, and segment operating income declined 27.7 percent. For Kraft Foods Developing Markets, net revenues increased 73.5 percent. Base business organic, combined organic net revenues increased 13.6 percent, Cadbury organic net revenues grew 6.7 percent, and segment operat- ing income more than doubled. CMN USA Today, ‘got milk?’ calling for entries for SAMMY awards scholarship WASHINGTON — The National Milk Mustache “got milk?” campaign, in partnership with USA Today, is an- nouncing the call for entries for the 14th annual Scholar Athlete Milk Mustache of the Year (SAMMY) Award program. The awards recognize 25 high school senior student athletes who represent excellence in academics, athletics, community service and leadership, and include lowfat milk in their daily routines. The scholarship rewards student athletes by helping to offset some of the costs associated with college tuition. Twenty-five students will receive a $7,500 college scholarship, attend an awards ceremony with celebrity guests at Disney World, be pictured in a special Milk Mustache ad in USA Today and have a chance to help their favorite charity in the process. Interested applicants can visit www.bodybymilk.com to submit an application. Applications are due March 4. This year’s winners will be selected by a celebrity panel of Milk Mustache athletes including Apolo Ohno, Chauncey Billups, Dara Torres, For more information circle 20 on the FAST FAX form on page 32. Andy Roddick and Lindsey Vonn. CMN Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com February 25, 2011 — CHEESE MARKET NEWS® 19 NEWS/BUSINESS Dean Foods announces fourth-quarter and full-year results, reflecting a difficult 2010 DALLAS — Dean Foods Co. recently an- earned $0.80 per diluted share for the sults reflect many of the same trends This volume softness was offset by the nounced its fourth-quarter and full-year full year 2010, compared to $1.59 for the that impacted business all year. pass-through of higher overall commod- 2010 financial results, which reflected full year 2009. For the fourth quarter, the “We have, however, begun to see signs ity costs driving an overall increase in an “exceptionally difficult year,” accord- company recorded a loss of $0.11 per that the fluid milk category is stabiliz- Fresh Dairy Direct-Morningstar net ing to Dean Foods Chairman and CEO diluted share from fourth quarter 2009 ing, albeit at historically low levels of sales of 7 percent to $10.2 billion for Gregg Engles. earnings of $0.27 per diluted share. On profitability,” Engles adds. “While we 2010. Full-year operating income for Net income attributable to Dean an adjusted basis, fourth quarter diluted do not see meaningfully better indus- this segment was $504 million, down 33 Foods totaled $91 million for the full earnings per share were $0.15, compared try conditions in 2011, we do see more percent from the previous year. year 2010, compared to $240 million the to $0.32 per diluted share during fourth stability returning to important aspects WhiteWave-Alpro net sales for previous year. On an adjusted basis, net quarter 2009. of our business, albeit stability at levels the full year were $1.9 billion, up income for 2010 totaled $147 million, Net sales for the 12 months ended that imply lower earnings in Fresh Diary 19 percent from 2009. For the full compared to $277 million in 2009. For Dec. 31 totaled $12.1 billion, compared Direct-Morningstar going forward.” year, this segment’s adjusted operat- the fourth quarter 2010, the net loss to $11.1 billion for the previous year. Fluid milk volumes at Fresh Dairy ing income increased 23 percent to attributable to Dean Foods totaled $21 Fourth quarter net sales totaled $3.2 Direct-Morningstar were essentially $175. The increase is a result of the million, compared to net income of $50 billion, compared to $3.0 billion net flat in 2010, including the benefit of positive impacts of the Alpro acquisi- million in the fourth quarter of 2009. sales in the fourth quarter of 2009. acquisitions. Total product volumes tion and solid double-digit operating Adjusted net income for the fourth Engles says the fourth quarter re- for the segment declined 2 percent. income growth at WhiteWave. CMN quarter 2010 was $27 million, compared to adjusted net income of $59 million in the same quarter of 2009. The company earned $0.50 per diluted share for the full year 2010, compared to $1.38 per diluted share for the full year 2009. On an adjusted basis, Dean Foods DairiConcepts introduces Ascentra flavor enhancer SPRINGFIELD, Mo. — DairiConcepts has introduced Ascentra, designed to meet the need of food manufacturers to reduce sodium content in foods and yet offer full flavor. Ascentra is a powdered ingredient that can lower sodium content by 25 to 50 percent in a range of food systems while also boosting salt perception, savory nuances and umami effects, company officials say. It is made from a milk-based fermentation process and has been developed to include kosher and European Union-certified versions of the base products. Ascentra does not contain mono- sodium glutamate (MSG), hydrolyzed vegetable protein (HVP) or yeast extract, so consumer goods made with the ingredients can be produced with clean label and “reduced sodium” and/ or “gluten-free” declarations. According to company represen- tatives, sensory evaluation panelists have described Ascentra applica- tions as tasting more wholesome and balanced than those made with yeast extracts, and yielding a more rounded flavor than traditional all-salt formulations The company also notes levels as low as 0.5 percent have been used to reduce salt and remove MSG from soups and snack foods as well as boost the cheese, meat and vegetable flavors of meal kits, sauces and dips. In addition, Ascentra is rich in potassium but does not contain potassium chloride, which helps to eliminate the possibility of metallic flavor notes. For additional information, con- tact 417-829-3400, e-mail dcinfo@ dairiconcepts.com or visit www. dairiconcepts.com/index.html. CMN For more information circle 21 on the FAST FAX form on page 32. Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 20 CHEESE MARKET NEWS® — February 25, 2011 NEWS/BUSINESS IDFA now accepting applications for the ISO, IDF develop new testing standard to eighth annual safety recognition awards determine content of melamine in milk WASHINGTON —The International Occupational Safety and Health Ad- GENEVA, Switzerland — The Inter- determination of melamine and Dairy Foods Association (IDFA) now is ministration (OSHA) on the facility’s national Organization for Standardiza- cyanuric acid by LC-MS/MS. The accepting applications for the eighth “Summary of Work-Related Injuries tion (ISO) and the International Dairy TS provides guidelines for sampling, annual Dairy Industry Safety Recogni- and Illnesses” report (OSHA Form Federation (IDF) recently developed testing procedures, performance and tion Awards, a program that honors 300A). a testing standard to determine the examples. facilities for outstanding worker safety Processing facilities will be judged content of melamine and cyanuric acid “This much-awaited document will performance. in four product categories: natural and in powdered milk products and infant help strengthen consumer confidence in Award winners will be notified this processed cheese; dry, condensed and formula. the milk industry,” says Steve Holroyd, fall and featured in the “Dairy Field Re- evaporated products; ice cream and Several children died or became co-project leader of the TS. “Producers, ports” section of Dairy Foods magazine, frozen desserts; and fluid milk. seriously ill in 2008 after drinking milk manufacturers and regulatory authori- which co-sponsors the safety awards Within each product category, awards sold in China that was contaminated by ties can use it to prevent further inci- program. are available for small, medium and large melamine. The substance, used in plas- dents. Although currently published as a IDFA began the program in 2004, facilities that achieve the best overall tics manufacturing, had been added to TS, the document is expected to become and the rate of industry participation safety performance rates based on the the milk in order to increase the appear- a fully-fledged International Standard continues to grow each year, according OSHA data. ance of its protein content. Ingestion of in the future.” to association representatives. Trucking operations will receive melamine can cause kidney stones and The new TS guidelines for melamine “The number of submissions we’ve certificates for having no lost days renal failure. testing standards is available from received from our members over the and no cases involving job transfers or To prevent adulterated milk prod- ISO national member institutes. It past seven years clearly demonstrates restrictions. ucts from entering the market in the also can be obtained directly from that worker safety is a high priority Entry forms are available online at future, ISO and IDF have prepared the ISO Central Secretariat, through for them,” says Clay Detlefsen, IDFA www.idfa.org, and there is no fee to enter. technical specification (TS) ISO/TS the ISO Store or by contacting ISO’s vice president of regulatory affairs. All entries must be submitted to IDFA 15495 | IDF/RM 230:2010, Milk, marketing, communication and in- “We encourage all facilities to send no later than March 31. milk products and infant formulae formation department. For more in- in nominations for their processing The awards will be displayed at IDFA’s — Guidelines for the quantitative formation, visit www.iso.org. CMN and trucking operations so we can International Dairy Show, Sept. 19-21 recognize and celebrate their success- in Atlanta. Award to honor food, beverage innovations ful efforts.” For more information, contact Applicants will be judged on Clay Detlefsen at 202-220-3554, e- CHICAGO — The National Restaurant eration must meet one or more of the specific data required by the U.S. mail: [email protected]. CMN Association is seeking innovative food following general criteria: and beverage products that have a • New product introduction — Prod- significant impact on the industry, and uct introduced to the U.S. marketplace will recognize the “best in class” at its on or after Jan. 1, 2010 through May annual trade show in May. 21, 2011. An independent panel of judges will • Product improvement — Sig- select the recipients of the first annual nificant improvement to an existing Food & Beverage Awards, to be show- product that is clearly recognizable by cased at the 2011 National Restaurant the operator. Association Restaurant, Hotel-Motel • New process or preparation — A Show May 21-24 in Chicago. new way to produce an existing product The association currently is accept- that improves the product in some way: ing applications from manufacturers who longer shelf life, better nutritional pro- have made significant advancements file, more nutrient retention, meets new and innovations in ingredients, prepara- nutrition standards. tion, processing and packaging of food • Healthier nutritional profile and beverage products launched in the — Changes that significantly impact U.S. marketplace between Jan. 1, 2010 the nutritional profile of the product and May 21, 2011. The product may be and can be validated. designed for one, several or all operator • Packaging improvement — A segments. significant change in the packaging of The awards will be presented in two the product that delivers clear benefits categories: healthier products, and in- to the operator. novative and impactful products. • Products designed for children “Food and beverage innovation is a — New products (and/or new formula- major driver of customer satisfaction and tions) specifically designed for tougher restaurant profitability. Manufacturers standards on student feeding. play a key role in food and beverage prod- • Incremental value to the operator uct innovation,” says David Gilbert, chief — Products that provide real value to operating officer, National Restaurant operators in terms of price, cost savings, Association. “To be successful, operators labor savings, time savings and increas- must continually seek and adopt new ing check average. products and ideas, frequently originat- The independent panel of judges for ing from manufacturers. the awards will represent major com- “Understanding this, the National mercial and non-commercial segments Restaurant Association is launching of the foodservice industry. the new Food & Beverage Product In addition to being showcased at Innovations Awards programs to the National Restaurant Association’s celebrate and encourage continued Restaurant, Hotel-Motel Show, award innovation from manufacturers, recipients will be featured in a pre- and while identifying cutting-edge ideas post-show promotional campaign. The operators can use to enhance their award recipients will be announced in business,” he adds. late April. For consideration, candidates must For more information and ap- submit their application by March 28. plication forms, visit www.restau- For more information circle 22 on the FAST FAX form on page 32. Any new product submitted for consid- rant.org/show/fbawards. CMN Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com February 25, 2011 — CHEESE MARKET NEWS® 21 NEWS/BUSINESS Scientists discuss saturated fat, heart disease NDB scholarship applications due April 15 ROSEMONT, Ill. — Beliefs about the cholesterol. ROSEMONT, Ill. — Applications now are Scholarship to the most outstanding impact of saturated fatty acids (SFA) “However, even this conclusion being accepted for 20 college scholarships scholarship recipient. on the risk of cardiovascular disease isn’t the last word, as there is growing that are awarded by U.S. dairy producers Applications are open to eligible (CVD) are being challenged by a new recognition that individual fatty acids through the National Dairy Promotion and undergraduate students (sophomores perspectives paper from an international within the PUFA category have differ- Research Board (NDB). through seniors) enrolled in college/uni- symposium held at the University of ent physiologic effects,” says Cindy NDB funds, in part, Dairy Manage- versity programs that emphasize dairy. Copenhagen last year. Schweitzer, technical director, Global ment Inc. (DMI), which manages the Majors include communications/public The paper, by Arne Astrup, et al., Dairy Platform, referring to a recent national dairy checkoff program. relations, journalism, marketing, busi- published in the American Journal analysis published in the British Jour- Scholarship criteria include aca- ness, economics, nutrition, food science of Clinical Nutrition, addresses “The nal of Nutrition which reported that demic achievement, a career interest and agriculture education. role of reducing intakes of saturated substitution of certain PUFA for SFA in a dairy-related discipline and dem- Interested students can download an fat in the prevention of cardiovascular and trans fatty acids increased risk of onstrated leadership, initiative and application from the “about us” section disease. Where does the evidence stand coronary heart disease. integrity. of www.dairycheckoff.com. in 2010?” When viewed in totality, the group The value of 19 of the scholarships Questions can be directed The meeting brought together concluded that the effect of a specific is $1,500. In addition, NDB awards a to Griffin at 847-627-3320, e-mail: many of the world’s leading scientists food on risk of CVD cannot be determined $2,500 James H. Loper Jr. Memorial [email protected]. CMN to debate and discuss this topic. They on the basis of its SFA content alone, and concluded that “single risk factors have noting the need for more research. Inline Plastics increases manufacturing limitations when considered on their “The review of evidence between own because the effects of diet on CVD reduced intakes of saturated fat and the capacity with new thermoforming line risk are mediated by many pathways, prevention of CVD raises excellent ques- SHELTON, Conn. – Inline Plastics plant will hire up to 18 more people. with blood lipids being only one.” In tions — and identifies great opportuni- Corp., a company that specializes in rigid “Inline Plastics has been contribut- addition, the ratio of total cholesterol ties about how the scientific community plastic food containers, has increased its ing to Connecticut’s economy for many to HDL cholesterol is a better predictor can move forward to better address the manufacturing capacity with the addi- years,” says Connecticut Gov. Daniel of the effect of saturated fatty acids on complex relationship between diet and tion of a new thermoforming line. Malloy. “This expansion will allow Inline CVD risk than LDL and/or total cho- heart disease,” says Gregory Miller, presi- This expansion, which company offi- Plastics to add 18 jobs and improve op- lesterol, as individual fatty acids have dent of the Dairy Research Institute and cials say was driven by a strong demand erations for the existing 196 employees. differential effects on various blood executive vice president of the National for Inline’s food containers, represents The state’s financial report will ensure lipids, research indicates. Dairy Council. a significant increase in manufacturing the company will stay in Connecticut and Scientists also say that when it comes Dairy Research Institute also says it capacity (up to 10 million containers per continue to invest and grow here.” to determining the correlation between agrees with many of the findings of the month). With the addition of the new For additional information, vis- CVD and food, all of the components group’s scientific perspective, includ- thermoforming line, the Shelton, Conn., it www.inlineplastics.com. CMN within the food matrix may be more ing the notion that the source of the important than concentrating solely on saturated fat and its specific nutritional fatty acids content. As an example, the merits must be taken into account before paper points out that the protein, cal- quality conclusions can be made about cium and other nutrients within cheese, the risk of these fats on overall health including certain fatty acids, may offset and wellness, including CVD. the effects of its SFA content on blood The institute also notes that it lipids and overall CVD risk. remains committed to the evolution of According to the experts, current science in this area with the ultimate evidence only suggests that substitu- goal of being able to help consumers tion of SFA by polyunsaturated fatty identify smart dietary choices that pro- acids (PUFAs), but not carbohydrates, vide important nutrients for good health results in a lowering of total and LDL and reduce risk of chronic diseases. CMN

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For more information circle 23 on the FAST FAX form on page 32. For more information circle 24 on the FAST FAX form on page 32. Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 22 CHEESE MARKET NEWS® — February 25, 2011 NEW PRODUCTS FOR DAIRY MANUFACTURERS Sealed Air’s Cryovac introduces new bag loader for Cheddar, Italian-style cheeses DUNCAN, S.C. — Sealed Air’s Cryovac director for Sealed Air’s Cryovac brand. has released its new BLX-F2 taped “The Cryovac BLX-F2 autoloader was bag loader designed for automatic bag designed with specific market needs loading. of processors in mind, while also focus- The system, intended for Cheddar ing on the increased performance and and Italian cheeses, offers processors labor efficiency they require in today’s configurable options using roll or boxed business climate.” taped bags for an expanded variety of The system operates at speeds of product sizes, shapes and weights. up to 45 cycles per minute depend- Company officials note that for the ing on product length, while ensuring first time, the system allows proces- gentle loading to help maintain product sors to program their in-feed for both integrity. The touch-screen operator in-line and perpendicular product interface can be programmed to save up separation and staging, depending on to 99 different product settings, and is the application. equipped with sensors and controls to The new loader also handles a wider ensure the product is correctly staged range of product weights, from 8 ounces for accurate loading. to 12 pounds, and requires minimal time In addition, the loader handles bag for change-overs. widths of 4 inches to 14 inches and bag “In today’s marketplace, processors lengths up to 30 inches. The system is need to be even more adaptable and of- built to 3-A dairy standards. fer a wider variety of products and sizes For more information, con- to their customers,” says Bill Bartell, tact 1-800-845-3456 or visit www. North American equipment marketing cryovacequipment.com. CMN Thermex sensor film allows users to quickly check and correct surface temp variations MADISON, N.J. — Sensor Products these fluctuations cause improper seal- Inc. has released its Thermex tempera- ing and need to be corrected to ensure ture distribution film. quality control. Thermex is an economical thin Sensor Products’ website, www. sensor material that can be used in sensorprod.com/thermex includes the heat sealing and ultrasonic welding minimum heat sealing temperature of of packaging to quickly diagnose the several materials used in packaging that temperature at the interface of heated fall within the specified temperatures contacting platens or rollers. of Thermex testing. Temperatures ranging from 200 Many plastics used in packaging fall degrees to 300 degrees Fahrenheit fall within Thermex’s temperature range. within Thermex’s range. Traditional Vertical form and fill machines as well methods of thermal management do as vacuum and flat web machines may not necessarily reveal that uniform be candidates for this product. temperature distribution at the inter- In addition, Thermex may be used face of the heat seal has been achieved, alone or in conjunction with Fuji company officials say. Prescale pressure-indicating film from Upon exposure to heat, Thermex Sensor Products. changes color instantaneously and Post-processing analysis of Ther- permanently to reveal temperature mex is available for temperature distribution between any two contact- fluctuations that need to be analyzed ing services. The intensity of the color with great precision, company repre- change directly relates to the tem- sentatives note. perature it was exposed to, enabling For a complimentary sample of Fuji Thermex to reveal spot high or low Prescale film or more information about temperature zones and minute surface Thermex, contact Sensor Products at 973- variations. 884-1755, e-mail: [email protected] According to company officials, or visit sensorprod.com/thermex. CMN Cryopak releases full-size pallet shipper EDISON, N.J. — Cryopak has intro- Each cavity gets a set of refrig- duced its RePak 96, a full-size pallet erants to ensure that temperature shipper used to keep payload within a ranges are not compromised during temperature range of about 35 degrees transit. Fahrenheit to 46 degrees Fahrenheit The unit is available in single use for 96 hours. and re-usable versions. The RePak 96 includes Cryopak “The RePak 96 was developed to refrigerant sleeves designed for easy offer our clients a flexible design pre-conditioning and assembly into that is easy for one person to put to- the shipper. gether in a very short period of time,” In addition, the pallet shipper fea- says Bill Hingle, marketing director, tures two payload cavities, allowing for Cryopak. more flexibility for shipments of tem- For more information, contact Bill perature-sensitive products, company Hingle at 732-346-9200 ext. 104, e- For more information circle 25 on the FAST FAX form on page 32. officials say. mail: [email protected]. CMN Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com February 25, 2011 — CHEESE MARKET NEWS® 23 NEWS/BUSINESS Dublin researchers Research finds VersiLac capable of replacing whey powder develop cheese MELROSE, Minn. – Proliant Dairy has “The structure of the dairy industry VersiLac replaced up to 100 percent completed several application research is shifting towards producing higher of nonfat dry milk and at least 25 per- product containing studies demonstrating that the ability of protein products vs. whey,” says Lori cent of both sugar and cocoa in select less sodium its VersiLac line to replace 100 percent Stevenson, vice president of sales and beverage, bakery and confectionery of whey powder in applications such as marketing, Proliant Dairy. “Food for- applications. DUBLIN, Ireland — Food scientists cheese sauce, ice cream, pizza crust mulators will have to ask themselves Company officials note that con- at University College Dublin have de- and brownies. how they will deal with less, and more sidering the rising cost of corn and veloped an imitation processed cheese VersiLac, which functions as a expensive, whey powder. Proliant corn-based ingredients, VersiLac also product that contains 60 percent less whey replacer, is the result of a Dairy is unique in that we are the demonstrated versatility in replacing sodium than the regular full-salt ver- combination of raw material capabil- only company in the world focused dextrose, maltodextrin or corn syrup sion. ity and a food grade manufacturing exclusively on value-added products solids. The researchers, who say there is process. Proliant also has shown like VersiLac.” The line is marketed throughout little difference in taste and structure, how VersiLac, known generically VersiLac is a natural, dispersible North America, Europe, Asia, the believe the low-sodium imitation as dairy product solids (DPS), can and soluble dairy ingredient. It is non- Middle East and Central and South cheese could improve Western diets replace more expensive products hygroscopic and will not cake or bridge America. associated with hypertension and including nonfat dry milk/skim milk in processing equipment. For more information, contact Lori stroke. powder, and partially replace cocoa In controlled research studies Stevenson at 515-289-7621, e-mail: The product is made from dry pro- and sugar. focusing on a variety of food systems, [email protected]. CMN tein ingredients such as casein powder rather than through the traditional cheesemaking process. Researchers note emulsifying salts and sodium chloride are the sources of added sodium content in processed cheese. By altering the manufacturing conditions, the sci- entists reduced the levels of sodium chloride and maintained the taste and structure of the imitation cheese while reducing sodium content by up to 60 percent. The methods also resulted in reduced processing times and a reduction in the amount of energy required for mixing and manufacture. The post-manufac- ture hardness of the cheese also was decreased due to slight changes in the way fat and moisture are distributed within the product. Researchers suggest the new method could be scaled up for industrial production of imitation cheeses with significantly reduced salt content. “With so much processed food being consumed, Western diets have about three times more sodium than is needed,” says Michael O’Sullivan, researcher. “This excessive intake of sodium is linked to increased rates of hypertension and stroke. So in recent years there has been a move toward reducing sodium in processed foods, including cheese products.” CMN Brynwood Partners sells investment in Richelieu Foods GREENWICH, Conn. — Brynwood Partners V L.P. has sold its investment in Richelieu Foods Inc. to Centerview Partners Holdings LLC. The terms and conditions of the transaction were not disclosed. Richelieu Foods, headquartered in Randolph, Mass., is a manufacturer of private label frozen pizza and salad dressings. Brynwood Partners acquired the company in 2005. Currently, Richelieu Foods em- ploys more than 650 people and operates four manufacturing fa- cilities in the United States. CMN For more information circle 26 on the FAST FAX form on page 32. Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 24 CHEESE MARKET NEWS® — February 25, 2011 NEWS/BUSINESS Study finds dairy calcium may play a role in reducing fat absorption, maintaining HDL ROSEMONT, Ill. — The nutrient com- Study authors note that historically, would have a bigger impact on LDL levels. disease risk. bination of calcium and milkfat present intervention studies have pointed to The protective function of dairy calcium “We believe this study underscores in dairy may play a role in reducing fat a relationship between a diet high in seems to set it apart from sources of fat,” the importance of dairy as a good daily absorption and may help the human body saturated fat and increases in total says Arne Astrup, professor and director source of calcium, protein and other to maintain good cholesterol (HDL), cholesterol and LDL cholesterol. As of the Department of Human Nutrition at nutrients while mitigating the impact while minimizing any increase in bad a result, some nutrition experts have the Faculty of Life Sciences, University on cholesterol,” Miller says. “The study cholesterol (LDL), according to an ar- recommended that consumers limit the of Copenhagen, and one of the study’s reinforces findings published in the ticle published in the February issue of intake of high-fat dairy products. How- authors. “This study supports previous Dietary Guidelines Advisory Committee the British Journal of Nutrition. ever, observational studies have found research we have conducted that indi- report in 2010 that suggests ‘bioactive The study, designed to explore why an inverse relation between intake of cates dairy intake may actually play a role components that alter serum lipid levels dairy products containing saturated fat milk and other dairy products with a in minimizing the risk for cardiovascular may be contained in milk fat,’ or the ef- and high contents of calcium do not seem high content of calcium and incidence disease vs. increasing the risk.” fect of milkfat on blood lipids is different to significantly affect blood cholesterol of cardiovascular disease. In addition, Gregory Miller, presi- than what might be predicted. levels as much as saturated fat from other The authors aimed to study whether dent of the Dairy Research Institute “This is valuable information for the sources, lends credence to the notion the high calcium content of dairy prod- and vice president of the National industry and for the consumer. It is an that milk and other dairy products with ucts influences the effect of dairy fat on Dairy Council, notes that many adults area of research the Dairy Research In- a high content of calcium might reduce the lipid profile. currently are concerned about their stitute continues to focus on,” he adds. the risk of cardiovascular disease. “In theory, without calcium, dairy fat intake, cholesterol levels and heart The study, “Dairy calcium intake modifies responsiveness of fat metabo- lism and blood lipids to a high-fat diet,” was a small, clinical trial that included participants completing four separate diets over a period of 10 days, with each diet differing in the amount of calcium and fat content. For more information on this and other dairy-related top- ics, visit USDairy.com. CMN DATCP accepting proposals for ag development grants MADISON, Wis. — The Wisconsin De- partment of Agriculture, Trade and Con- sumer Protection (DATCP) currently is accepting proposals for the Agricultural Development and Diversification (ADD) Grant Program. These competitive grants are awarded annually to projects that are likely to stimulate Wisconsin’s agricultural economy through the development and exploration of new products, markets or technologies. Proposals are due by 5 p.m. March 15, 2011. Projects that have near-term im- pacts, innovation, commercialization potential, project team strength and potential benefit to a sector of Wisconsin agriculture are encouraged to apply. Individuals, associations, agribusi- nesses and industry groups are invited to apply. The proposal can involve a collaboration or partnership between producers, industry, academia or agri- cultural organizations. Grant funding is provided by the State of Wisconsin, and the maximum grant amount is $50,000. Since 1989, DATCP has distributed $7.1 million to fund 354 projects. ADD grant recipients have reported their projects leveraged more than $52 mil- lion in new capital investment and more than $147 million in economic returns, including increased sales, cost reduc- tions and economic impact. More information and application materials are available online at datcp. wisconsin.gov under “Business, Grand & Financial Aid.” For questions about the grant program or completing the applica- tion, contact Mike Bandli, 608-224-5136, For more information circle 27 on the FAST FAX form on page 32. or [email protected]. CMN Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com February 25, 2011 — CHEESE MARKET NEWS® 25 NEWS/BUSINESS

restaurants could have been required to for the whole pizza, but they want to • Challenges of implementation MENU comply with two different sets of rules know what it is per serving, so they While McIntyre says Domino’s Continued from page 1 — complying with “guidance” first and think we are trying to hide something does support national menu labeling then with final regulations later. from them because we’re asking them standards, he thinks there should be and drive-thru boards. Buffets, salad The association notes that switch- to do the math.” flexibility in how they apply to some bars and other self-service items also ing out menus and menu boards to Hensley says that the National food industry establishments. are included and will be required to reflect a two-step implementation Restaurant Association has had a He again notes that the bulk of provide caloric information adjacent would have added cost and confusion number of conversations with FDA to Domino’s customers do not come into to the item. for restaurants as well as confusion and communicate the complexities of the the store to order pizza. Establishments also must provide uncertainty for consumers. food industry. “The challenge for pizza companies additional nutritional information in In addition, replacing various local “We strongly hope FDA is considering is two-fold: about 95 percent of Domino’s writing upon request. The additional guidelines with a uniform federal stan- those complexities and determining the orders are given to us off premises (call- written information would include dard is especially helpful to restaurant best way for consumers to understand ing in or online), so it makes more sense calories from fat, total fat, saturated chains with locations throughout the the information,” she says. for our nutritional info to be online,” Mc- fat, cholesterol, sodium, carbohydrates, nation, as they currently are having McIntyre is quick to point out that Intyre says. “When you build your order sugars, dietary fiber and protein. Estab- to keep up with different rules and Domino’s very much supports providing online, you can see specific nutritional lishments also are required to include regulations depending on location, the nutritional information to consum- info; even if you order by phone, you can a succinct statement concerning the association says. ers, but in a way that makes the most still get the information online. suggested daily caloric intake. In fact, according to Sue Hensley, sense. “It seems like a competitive disad- However, based in part on extensive senior vice president of communica- “Sharing nutritional information has vantage to us when we have to spend comments on the draft guidance, FDA tions for the National Restaurant As- never been something we’re against money on changing menus that people last month withdrew the proposal and sociation, several states and localities — we’ve been doing it for about 12 don’t really see,” he says. “We’re look- said it intends to complete the notice- have held off on implementing their years,” he says. “But our information ing at how to change the boards that and-comment rulemaking enforcement own regulations in anticipation of a is online, where most of our customers exist, how to meet the needs of all process before initiating enforcement national law. are placing their orders. these communities, looking at creat- activities. Still, some locations already have “Menu labeling is all about battling ing electronic boards because places FDA notes it is required to issue implemented their own rules, and the obesity, and we get that,” he adds. “But with printed boards would have to be proposed regulations no later than varying rules based on location is one we also know that the average person reprinted in their entirety. Electronic March 23, 2011. The agency then will concern noted by Tim McIntyre, vice doesn’t order from us every week. When boards would be much easier to modify review the comments it receives on president, communications, Domino’s people criticize food companies, they as we go.” the proposed rule and issue a final rule Pizza Inc. forget that behind all of these compa- McIntyre notes that placing informa- “expeditiously.” “We’re in favor of a national mandate nies are actually real people who have tion on menus and menu boards makes FDA says it believes this approach to because it would pre-empt all of these their own families to feed. The people more sense at restaurants like TGI implementing the rules will minimize individual communities making their making decisions about the foods we’re Friday’s where customers sit down and uncertainty and confusion among all own rules,” he says. “It’s difficult to have providing have kids of their own, and we have a printed menu in front of them. interested persons. certain regulations in one area and then care about these issues, too.” Turn to LABELING, page 27 Once implemented, the federal slightly different regulations in another. guidelines will replace differing regula- We would like one set of guidelines that tions and laws that a growing number of we can work with nationwide.” cities, counties and states have passed McIntyre says that local regulations to mandate that chain restaurants put in places like New York have affected calories and other nutritional informa- some of Domino’s locations. tion on their menus. “In New York, they’ve pushed us to • Uniform regulations label an entire pizza, not just an amount The National Restaurant Association per serving,” he says. “We’ve actually says it supports FDA’s approach, not- had feedback from customers in New ing last August’s draft guidance meant York. They see the total calorie count

For more information circle 19 on the FAST FAX form on page 32. For more information circle 27 on the FAST FAX form on page 32. Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 26 CHEESE MARKET NEWS® — February 25, 2011 NEWS/BUSINESS PEOPLE

VARIETY climate made for an even bigger ac- complishment. Comings and goings … comings and goings Continued from page 1 According to Mathiowetz, the an adviser to the board on non-legal bleakest period for the U.S. economy Dean Foods Co., Dallas, recently announced the promotion of Tommy issues. addition — the Wisconsin 6 Cheese, in recent years occurred in a portion Zanetich to executive vice president, Wisconsin Department of Agricul- a combination of Mozzarella, Feta, of 2008 and all of 2009. human resources, Dean Foods, ef- ture, Trade and Consumer Protec- Provolone, Cheddar, Parmesan and “During that time consumer con- fective immediately. Zanetich joined tion (DATCP) Secretary Ben Brancel Asiago sprinkled with oregano on a fidence fell, and most discretionary Dean Foods in 2006 as senior vice recently appointed administrators of Parmesan and Asiago crust. spending was cut,” Mathiowetz says, president, human resources, for the five divisions. Mike Powers will lead “The idea is of course to sell more noting the “white table cloth” res- WhiteWave Foods division. He previ- the Division of Agricultural Develop- pizza, but, then to change the mix to taurants were hit the worst, and the ously served as vice president, human ment. Powers served five terms in sell more pizzas with more cheese,” casual dining restaurants also were resources, for Kraft Foods North the Wisconsin Legislature and later Montel says. “If all traffic went to affected. “Surprisingly, consumers America Customer Development. worked in real estate and wind energy just pepperoni with regular amounts still went to quick-serve restaurants. Pennsylvania Gov. Tom Corbett development. John Petty will lead the of pizza cheese, our results wouldn’t It was during this time when the pizza recently has nominated George Greig, Division of Agricultural Resource Man- be as favorable.” wars started and the pizza chain res- a farmer and agriculture leader from agement. Petty comes to DATCP after Montel notes that DMI and taurants began offering significant Linesville, Pa., as secretary of agricul- 13 years as executive director of the Domino’s are now in their third year deals like three pizzas for $10.” ture. Greig has held many positions Wisconsin Agri-Service Association. of the three-year partnership, and Mathiowetz adds that frozen pizza within the Pennsylvania Farm Bureau, Steven Ingham will return to lead results have been favorable. manufacturers felt the impact of those where he has served as the state board the Division of Food Safety. Ingham “Based on the success we’re having promotions on their businesses as director for the past six years. He also has been a faculty member at the Uni- and the opportunity we see, we are in well, and started offering significant owns and operates a 650-acre dairy versity of Wisconsin-Madison Depart- conversation with Domino’s to further discounts at the retail level. This was farm in partnership with his brother ment of Food Safety and a food safety extend the partnership,” Montel says. attractive to consumers who were in Crawford County. The confirmation specialist with the UW-Extension “It’s a win-win — farmers are selling watching every penny they spent. process is expected to be complete in since 1993. He served as the DATCP lots of cheese and the pizza category “There are many cheese suppliers April. Former Pennsylvania Secretary Division of Food Safety administrator is growing.” pursuing sales for pizza applications. of Agriculture Russell Redding, who from November 2008-July 2010 while Foremost Farms USA of Baraboo, It’s a crowded market and difficult served under the Rendell admin- on leave from the university. Sandy Wis., is one such company that pro- to become quickly established,” Ma- istration, has been named dean of Chalmers also returns to DATCP, in a vides cheese to pizzerias as well as thiowetz says. “Foremost Farms has Agricultural and Environmental Sci- new role leading the Division of Trade other retail, ingredient and foodser- worked for over a decade to build ences at Delaware Valley College, and Consumer Protection. Chalmers vice customers. markets in this area, and we feel Doylestown, Pa. Redding was ap- has served since 2003 as the execu- “We’ve seen our sales to the pizza we’re just now getting recognized as pointed secretary in 2009 and served tive officer of the Wisconsin office of sector grow,” says Pat Mathiowetz, the supplier of quality Italian-style with the Pennsylvania Department of the USDA Farm Service Agency and senior director of sales and market- cheeses that have consistent, superior Agriculture for 16 years. previously was Brancel’s director of ing, Foremost Farms USA. “We supply performance.” Richard Kriebel, chairman of the Office of Outreach and Policy dur- a very consistent, premium, all-natu- Overall, Foremost Farms, which the Pennsylvania Milk Marketing ing his first term as DATCP secretary. ral quality product, and that’s what produces both Cheddar and Ital- Board, has announced the retire- Perry Brown has been promoted to restaurants are looking for to please ian-style cheeses, came through the ment of Keith Bierly as secretary lead the Division of Management their consumers. Our cheese is all recessionary period fairly well due after seven years of service, and the Services. Brown has been with DATCP produced in Wisconsin which is also to its balanced portfolio of sales, appointment of Timothy Moyer as since 2000, serving most recently as a selling point for customers who are Mathiowetz says. The cooperative’s acting secretary. Moyer has been an director of the Bureau of Agricultural looking for something special to top Italian-style cheese customers rep- employee of the board since 1993, Business and Sector Development and their pizzas.” resent foodservice, food processing and since 2000 he has been chief of acting administrator of the Division And while sales growth is always and cheese converting. support services. Moyer also serves as of Agricultural Development. CMN a positive, the challenging economic Turn to TOPPINGS, page 30 From the Brine or Tower to the Pallet Automation Solutions

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For more information circle 28 on the FAST FAX form on page 32. For more information circle 29 on the FAST FAX form on page 32. Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com February 25, 2011 — CHEESE MARKET NEWS® 27 NEWS/BUSINESS

“The results suggest that mandatory gave for their menu selections. Smart Slice school lunch pizza as LABELING menu labeling, unless combined with McIntyre notes that Domino’s fran- one example. Continued from page 25 other interventions, may be unlikely chises in New York have said they see Domino’s Smart Slice is a whole- to significantly influence the obesity zero change in ordering patterns from wheat, reduced-fat and reduced- “We’re hopeful that people will epidemic.” customers following implementation sodium pizza, which is baked fresh recognize that one size can’t fit all In addition, a recent study pub- of the menu labeling rules. and delivered to schools. Smart Slice in this,” he says. “We’re not against lished online in the International But even if consumers’ choices are is already being served in more than it, but we think the pizza industry Journal of Obesity found that requir- not influenced by the additional in- 120 school districts, and Domino’s specifically should have a say in how ing fast food restaurants in New York formation, McIntyre says that doesn’t plans to double that number within it’s being done.” City to post calorie counts on menus stop Domino’s from continuously the next year, he says. • Unique factors of pizza did little to cut the number of calories working to improve its products. McIntyre notes another thing In addition to the issue of online children and teens consumed. “We have a full-time health and Domino’s is working on with its web- ordering, pizza as a food has some Researchers found that while wellness person, looking at fat con- site is to have an option for custom- unique factors that should be taken children and adolescents noticed tent of cheese and other factors,” he ers to build a “better for you” pizza, into account, McIntyre says. the calories posted on the menu, the says. “We’re always looking at ways to with recommendations for healthier He notes there are millions of calorie counts made little difference improve quality of products, reduce toppings. possible different combinations to in what they chose to order. Rather, sodium — changes that don’t radically “We’re looking at things that might order. researchers say taste was the most im- alter taste.” be an indulgent treat taste-wise but not “We think there should be some portant factor the children and teens McIntyre points to Domino’s necessarily calorie-wise,” he says. CMN flexibility — maybe providing info on the top five most-ordered pizzas instead of every combination pos- sible,” he says. McIntyre also notes that for some restaurant chains, products are the same anywhere you go, but pizza is a ® customizable product. TETRA PLEX C10-ECO “Pizza is a bit more ‘consumer choice.’ A Big Mac is the same every- where, but customers can customize Tetra Plex ® C10-ECO Stainless Steel Frame Plate Heat Exchanger with an their pizzas,” he says. “The beauty of automatic Electric Closure/Opener frame from Tetra Pak. Based on the pizza is that you can make it as healthy proven design of the successful Tetra Plex® C line of Plate Heat as you want it to be.” Exchangers, the Tetra Plex® C10-ECO is designed for processing plants He adds that pizza is not typically a food consumers eat every day. that want to minimize downtime and maintenance and be “Typically, you don’t eat it when environmentally friendly. you’re driving, and it’s usually a planned/shared occasion,” he says. Features of the Tetra Plex® C10: “To many people, it’s a special indul- t
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GSBNFT restaurant chains with 15 or more locations beginning in January 2009. Restaurants were required to disclose Visit us at www.tetrapakprocessing.com or calorie information at the point of contact directly; [email protected], purchase. Researchers from Duke-National 800-806-9675 University of Singapore (NUS) Gradu- ate Medical School and the public health department of Seattle and King County found, in the 13 months after the legislation went into effect, food-purchasing behavior at the Taco ® Time locations in King County was Tetra Pak, ,PROTECTS WHAT’S GOOD and Tetra Plex C-10 ECO are trademarks belonging to the Tetra Pak Group. identical to that in Taco Time loca- tions where menu boards remained unchanged. In addition, the total number of sales and average calories per trans- action were unaffected by the menu labeling, researchers found. “Given the results of prior studies, we had expected the results to be small, but we were surprised that we could not detect even the slightest hint of changes in purchasing behavior as a result of the legislation,” says Eric Finkelstein, associate profes- sor of health services at Duke-NUS. For more information circle 30 on the FAST FAX form on page 32. Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 28 CHEESE MARKET NEWS® — February 25, 2011 NEWS/BUSINESS

overall quality score or grade based SENSORY on a designated list of defects. These Continued from page 1 methods are fast and practical in a large manufacturing facility or quality how a cheese looks and tastes compared control environment. to other products to detailed descrip- Robert Bradley, University of Wis- tions of how it melts on a pizza or breaks consin retired professor of food science down in the mouth. and cheese judge trainer, describes The Wisconsin Center for Dairy cheese grading as a point scale based Research (CDR) at the University of on what might be considered a “perfect Wisconsin-Madison helps cheesemak- cheese.” Flavor is given the most weight, ers and food companies by creating body and texture next, and color and descriptions and analyzing various appearance third. Special categories profiles of cheeses, beverages, ice exist for certain cheeses, such as eye cream and finished foods with dairy formation in Swiss. ingredients. The first thing a cheese grader does “It’s not unusual for them to send is look at the surface, Bradley says. It cheese to the center, and we profile it has to be smooth, otherwise mold could for them,” says Carol Chen, researcher grow underneath the wrapper. Color and coordinator of CDR’s sensory discrepancies might indicate discrepan- program. cies in flavor. For example, she says, when describ- Next, the grader or judge will use a ing a Cheddar, researchers at CDR begin cheese trier to pull a plug to sample, with a few things about the body, how smelling the fresh-cut surface. firm it is, and how it breaks down in “Since it’s a fresh-cut surface, you the mouth. For flavor, they start out check for odor. It gives the first indi- describing overall intensity — mild, cation,” Bradley says. “Examine the aged, sharp or extra sharp — and basic surface of the plug. Are there openings? flavors such as acid, sour, sweet or bitter, Gas holes? Those are discrepancies. Is before moving on to other flavors from the color uniform from top to bottom? milky or buttery notes for young cheeses The grader then will bend the to possible sulfery notes as it ages. cheese plug to see where it breaks. If “We describe flavors that contribute a Cheddar breaks before a 90-degree toward the Cheddar flavor, anything that bend, it’s marked as “short” and may pops up,” she says. “We don’t attach have an acid flavor. If it breaks beyond positive or negative terms.” 90 degrees or not at all, the cheese is • Making the grade weak and too soft. USDA grading and American Dairy “From there, you make notations Science Association (ADSA) scorecard on an evaluation sheet and put down a judging are among the most well- score,” Bradley says, adding that USDA known and traditional sensory tests. has fixed deductions for each discrep- In a 2007 review for ADSA, “Sensory ancy in flavor, body and texture, color Analysis of Dairy Foods,” MaryAnne and appearance. Drake, professor of sensory analysis “They all go by ‘slight,’ ‘definite’ or and flavor chemistry at North Carolina ‘pronounced.’ It’s a judgment call,” he State University, writes that in these says. “It takes a lot of training to get For more information circle 31 on the FAST FAX form on page 32. techniques, a product is assigned an someone to the point where they can judge correctly or evaluate correctly.” • A science of sense Sensory profiles may seem subjec- tive depending on a person’s taste, preference and experience, but the aim of sensory analysis is to produce repeatable results. “We are not looking for the perfect cheese. The goal is to 1: learn how to de- scribe the cheese, 2: identify off flavors that are present and find the causes, and 3: describe the main descriptors that define the product,” says Montserrat Almena-Aliste, a food science professor who specializes in sensory evaluation at the University of Vermont and Vermont Institute for Artisan Cheese. “At the end you have a good objective picture of the product and a good tool to evaluate the sensory quality of your cheese.” Sensory researchers go into more depth than the average consumer would to describe and analyze properties of a cheese or other product. One example of this is differentiating between bitter- ness and acidity, Almena-Aliste says. “Some people are not able to differ- entiate between these two basic tastes, but in terms of troubleshooting, the For more information circle 32 on the FAST FAX form on page 32. Turn to TASTES, page 31 Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com February 25, 2011 — CHEESE MARKET NEWS® 29 CLASSIFIED ADVERTISING

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they buy a frozen pizza,” he says. a stable outlet for cooperative mem- Fontina, Parmesan, Romano, Asiago TOPPINGS “Serving the ethnic pizza restau- bers’ milk. The expansion will be and other hard cheeses.” Continued from page 26 rants and independent pizzerias complete in the spring of 2011. In fact, cheese blends have really was good for Foremost Farms, too, In addition to Mozzarella, the taken off in recent years, according Selling to frozen pizza manufac- because those restaurants fared cooperative has supplied white to Sommer. In some restaurants, turers, Mom-and-Pop restaurants, better than the chains during the Cheddar to the Greek pizza res- blends of Mozzarella, Muenster and club stores and cash-and-carry food- economic downturn. taurants on the East Coast since Provolone are used to achieve the service suppliers also has helped “A lesson that Foremost Farms the early 1960s. Mathiowetz notes typical stretch and mouthfeel with minimize the impact of the reces- learned over the past three years Provolone also is sometimes used on the added benefits of a more rich sion and keep sales strong. is that it’s very important to have pizza, and works well when blended and unique flavor. Other blends Mathiowetz notes both the fro- a balance among supplying,” Ma- with Mozzarella. incorporate cheeses such as Blue zen pizza and restaurant segments thiowetz adds. “The specialty pizza restaurants or Feta to achieve a different look have been positive for Foremost Due to the positive response the are always looking to introduce new and a different flavor. Farms. cooperative has had from its Moz- cheeses and other unique toppings “It’s not a new concept, but it “We service the frozen pizza zarella customers, Foremost Farms on their menus,” he says. “We’re has really taken off in terms of crazy market with companies that are is expanding its Appleton, Wis., seeing more requests from custom- and wild combinations,” Sommer committed to producing quality Mozzarella plant. Mathiowetz notes ers who want their own signature says. “There is much more unique- frozen pizzas. And, consumers are this will allow for continued growth blends. They’re interested in blend- ness and experimentation with new looking for quality and value when within the pizza market and provide ing mozzarella with cheeses such as products in sit-down and delivery stores.” Sommer notes one important factor to take into consideration when making blends is meltabil- ity. For example, Blue cheese has the tendency to over melt, while
  
      Parmesan and Romano also pose difficulties with meltability. Those
           working with Cheddar also should   keep in mind that the full-fat cheese              has a tendency to oil off, resulting  in a pizza with a greasy appearance.            Sommer notes one solution may be   to blend with a lower fat cheese like low-moisture, part-skim Mozzarella
      in order to provide balance and     !"#! $ %  & ' !"( ! )  reduce oiling off.  *!+   ,     $-!./ ! In addition to blends, current  '01   # %22'#! -,-*,&* ! trends indicate pizzas now feature   3 !&   /,% 
 45 a wider variety of cheeses in gen- -!  "*!+ #! !3  !-%.  eral. Recently, CDR conducted a  %%# - ),!  ,%-!%*!+( !, !. survey, sampling pizzas at several establishments in Madison, Wis. Sommer notes he was astonished at the number of different cheeses being used.         “We encountered Romano, Swiss,         Muenster, Provolone, Fontina,          Pepper Jack, Ricotta, Parmesan,  ) ( %.*!+> -  #! $ :! 3% $ -   Cheddar, Asiago, Feta, Blue, and  !,&!! ,%!,&  of course the traditional Mozza-  !-! ! ,%  rella,” he says, noting Cheddar in  
3 %! $$ particular is becoming a widely used  5  + -! !  1!- cheese. “Restaurants are looking to differentiate from everyone else by adding different cheeses with dif- ferent flavors and visual appeal. If #& 6 7889
7 :/6 7889
#;;1 /7 8 * --% 24 9 7 
3 %6<!=,&3!+';, 34) 6''';,&3!+';, 3 you put Blue cheese or Feta on a  pizza, it really stands out.”  In addition to cheese, restau-

     
   rants are getting creative about          pizza toppings in general

  

    

  

    

      !"  As far as future outlook goes,

#   

#   

        Montel expects the variety of


   cheeses used in the pizza industry  
 continue to grow. He notes one ben-
   efit of this trend is that, with the
  
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 help of quick service restaurants     in the pizza category, specialty    cheeses are becoming much more       mainstream.      “Consumers want a broader cheese experience,” Montel says.     “We will continue to expand   beyond process American into    other more specialty types of cheese — they just bring a ter- For more information circle 35 on the FAST FAX form on page 32. rific flavor experience.” CMN Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com February 25, 2011 — CHEESE MARKET NEWS® 31 NEWS/BUSINESS

reproducible as possible.” a technical point because, along with “It’s another case of why it’s really TASTES Drake also says in the report, pH and moisture content, it controls important to us to accurately describe Continued from page 28 “Sensory analysis is an invaluable bacteria and enzymatic activity shap- a product,” she says. “Whether a per- set of methods for research and ing the sensory profile and shelf life formance is acceptable or not, the end steps are very different if it is one or marketing. Knowledge of product of the cheese,” she says. user really has to decide that.” the other, so it is very important to be variability, stability, comparison to “Exploring how different salt levels While sensory research in cheese sure that as a cheesemaker you know competitor products, relationships to affect the quality of your cheese is used to deal primarily with evaluating the difference,” she says. instrumental analyses and consumer always helpful,” she adds. “Salt is a the cheese by itself, the field now has When training students to evaluate understanding are all requirements critical factor in the quality of cheese, shifted to include cheese that will sensory profiles, Almena-Aliste says for a successful product.” and salt preference levels are quite be used as an ingredient. Research she focuses especially on descrip- • Examining applications different among consumers. So you might include how the cheese needs tive analysis, which brings a more Examining the sensory profiles of need to do your homework!” to perform in a sauce, on a pizza or comprehensive approach than other cheese through basic tasting panels, Sensory research also involves as an ingredient in a cracker. methods. grading evaluation or descriptive determining what is preferred by the Chen gives the example of someone In her “Sensory Analysis of Dairy analysis can help companies deter- end user, and those preferences can who approached the researchers at Foods” review, Drake writes that mine if their cheese is a good match vary by demographic. CDR looking for the right Mozzarella descriptive analysis consists of train- with consumers and for various ap- “The variety in what people are for a deep-dish pizza. ing a group of individuals (generally plications. It also can help pinpoint looking at as acceptable is very dif- “All the ingredients were going next 6-12) to identify and quantify specific flaws and how to adjust the process or ferent,” Chen explains. “On the East to the crust, covered with sauce, and sensory attributes or all of the sensory ingredients to improve the cheese. Coast they don’t mind oiling off and they wanted to know how Mozzarella attributes of a food. This sensory tool Almena-Aliste says many cheese- they expect the melted cheese to would perform there,” she says. “We requires training of the panelists to makers are concerned with finding brown. The West Coast wants their assessed how it was performing and operate in unison as an instrument. the right level of salt for their cheese, pizza pie to have minimal oiling off helped them change specifications of “A trained sensory panel should so salt level is one of the most impor- of the cheese.” the cheese so it performed better in produce results analogous to instru- tant players in examining sensory Chen says panels representing the that part of the application.” mental data,” Drake says in the 2007 profiles. end users should have specific targets Sensory researchers at CDR work review. “As such, the sensory instru- “Salt enhances and balances in mind to evaluate how a product with different types of pizza ovens to ment (panel) should be as precise and cheese flavor, but it also helps from performs. Turn to INGREDIENT, page 32 2010 U.S. milk production rose 1.8 percent; January production up 2.3 percent from year ago WASHINGTON — Milk production head from a month earlier and 82,000 was driven by a gain in milk per cow; pounds of milk in January, up 1.6 percent in the 23 major milk-producing states head more than in January 2010. Pro- production per cow was up 25 pounds from a year earlier. Production per cow during January totaled 15.23 billion duction per cow averaged 1,813 pounds, from a year earlier. NASS reports there in Wisconsin averaged 1,740 pounds, up pounds, up 2.7 percent from January up 29 pounds from a year earlier. were 1.75 million cows on California 20 pounds from January 2010. NASS 2010, according to recent preliminary California led the nation’s milk farms in January, unchanged from the reports there were 1.27 million cows data from USDA’s National Agricultural production with 3.39 billion pounds of previous month and down 11,000 head on Wisconsin farms in January, un- Statistics Service (NASS). (All figures milk in January, up 0.7 percent from its from January 2010. changed from the previous month and are rounded.) production a year earlier. The increase Wisconsin followed with 2.20 billion up 5,000 head from a year earlier. CMN December revised production in the 23 major states, at 15.03 billion pounds, was up 2.7 percent from December 2009. The December revision represents a decrease of 17 million pounds or 0.1 percent from last month’s preliminary production estimate. The annual production of milk for the United States during 2010 was 192.82 billion pounds, 1.8 percent above 2009. Revisions to 2009 production increased the annual total 14 million pounds. Revised 2010 production was up 93 mil- lion pounds from last month’s report, NASS says. Production per cow in the United States averaged 21,149 pounds for 2010, 576 pounds above 2009. The average annual rate of milk production per cow has increased 16.4 percent from 2001, according to NASS. The average number of milk cows on farms in the United States during 2010 was 9.12 million head, down 0.9 percent from 2009. The average number of milk cows was revised up 2,000 head for 2009, NASS says. In this month’s report, NASS says January milk production for the entire United States is estimated at 16.39 billion pounds, up 2.3 percent from January 2010. There were 9.16 million cows on farms, 16,000 head more than a month earlier and 68,000 head more than a year earlier. Production per cow nationally averaged an estimated 1,789 pounds in January, 26 pounds more than a year earlier. In the 23 major states, there were 8.40 million cows in January, up 14,000 Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 32 CHEESE MARKET NEWS® — February 25, 2011 NEWS/BUSINESS

Vancouver, Wash., manages its prices, need to slow down from what has been “You need to keep in mind that your PRICES says Jeff McNally, vice president of occurring for the past few months,” company’s bottom line could change Continued from page 1 supply chain at Papa Murphy’s. Cropp says. over time too, meaning you need more McNally says the company uti- Cropp also notes weather will be or less cheese,” he says. of their product and wait to see what lizes a combination of risk manage- a key factor. According to McNally, Papa the market does for the other half. ment strategies, including forward “Not only can weather have a sig- Murphy’s does not pass increased “I’m a believer in ‘don’t put all of contracting. Typically, the company nificant impact on milk per cow this cheese costs to its consumers, nor your eggs in one basket,’” he says. looks to lock in the price for about summer, weather conditions for the do higher costs affect the types or If a pizza operator were to lock 50 percent of its cheese up to 6-12 2011 crop planting and growing season amount of cheese used on its pizzas. in prices for the year for all of their months in advance. will greatly impact crop prices and The company does, however, watch cheese, for instance, he could be at a He notes the company is in a good feed costs for dairy producers later the competition. disadvantage if prices drop dramati- place right now as the price it is pay- this year,” he says. “For one thing, you have to assume cally from where they were when the ing for cheese is considerably lower Restaurant traffic, including at your competition is going through the contract was set, Chesler says. than today’s market prices. pizza chains, also will be an important same thing you are,” he says. “You have “In that instance, you could be Industry consensus seems to be factor for holding up butter and cheese to remain competitive, price-wise. If paying more for your cheese than your that these higher cheese prices won’t sales and their prices, he adds. everyone’s raising prices, well, then competitor,” he says. last. Chesler says managing price risk maybe it wouldn’t be a competitive The “50/50” rule is how Papa “To hold prices as currently shown isn’t about “beating the market price;” disadvantage to do so.” Murphy’s Take ‘n Bake Pizza, based in by dairy futures, milk production will it’s about balance. McNally adds that Papa Murphy’s prides itself on having what it believes is some of the highest-quality product in the industry. “We don’t do deliveries. Our pizza is made fresh in front of you for you to take home and bake,” he says. “Even if competitors are paying less for cheese, you can’t always put a price on value, and our cheese is very high quality,” he adds. “The abun- dance of toppings and freshness of our products is most important.” CMN

INGREDIENT Continued from page 31

determine how a cheese’s attributes will change given different condi- tions. “There are several different kinds of ovens pizza is cooked in — home, restaurant, stone-on-bottom, forced-air ovens,” Chen says. “Cheese performs differently in all ovens. It’s all very empirical. Cook pizza in one type of oven, it has a nice level of browning. Change one thing, you may not have acceptable browning.” • Higher standards As people become interested in a broader range of foods and develop new tastes, and as the quality and technology in cheesemaking improves, the science of sensory evaluation also grows. “The analytical techniques that support sensory science are growing. They are finding more and more about the chemistry of cheese,” Chen says. “Detection and measurement of things going on in cheese is improving, and we can correlate those along with sensory. They can support each other.” Bradley adds that the quality of cheese has improved because of higher quality milk, and because automation has helped decrease human error. However, he says, that alone won’t create a perfect score. “The occasional human error is eliminated,” he says. “But it does take the master cheesemaker’s touch to create the top-quality cheese you see going for $10-$15 a For more information circle 45 on the FAST FAX form on page 32. pound. It’s almost artful.” CMN Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com