Volume 33 June 21, 2013 Number 22

Scan this code for breaking House rejects farm bill; supply news and the latest markets! management debate heats up

A WASHINGTON — The U.S. lion in defi cit reduction, elimi- The failure of the House require food manufacturers House voted 234-195 Thursday nation of direct payments and bill stalls momentum for the to withhold payments from INSIDE to reject the Federal Agricul- the fi rst reforms to SNAP since legislation following Senate dairy farmers and to remit ture Reform and Risk Manage- 1996 — are so important that passage of its version of the the revenues to USDA. The ✦ WDE Championship ment (FARRM) Act of 2013, the we must continue to pursue farm bill last week. Current proposed program is known Dairy Product Contest. House Agriculture Committee’s them,” says House Agriculture funding for many farm pro- as the Dairy Market Stabiliza- For details, see supplement. version of the farm bill. The bill Committee Chair Frank Lucas, grams expires Sept. 30. tion Program (DMSP). (See now heads back to committee. R-Okla. “We are assessing all “Twice the Senate has “Senate passes farm bill that ✦ Guest columnist: Industry stakeholders say of our options, but I have no overwhelmingly passed a bi- includes Dairy Security Act” ‘Dairy product quality opposition by Democrats who doubt that we will fi nish our partisan Farm Bill that reforms in last week’s issue of Cheese and biofi lms.’ rejected steep cuts in the work in the near future and farm programs, ends direct Market News.) For details, see page 4. Supplemental Nutrition Assis- provide the certainty that our payments, cuts spending, and The House farm bill in its tance (SNAP), or food stamp farmers, ranchers and rural creates American agriculture original form also included ✦ Dean Foods phasing out program, and Republicans constituents need.” jobs,” says Debbie Stabenow, the DSA, but an amendment Shenandoah’s Pride brand, who viewed farm spending House Ag Committee Rank- D-Mich., chair of the Senate offered by Reps. Bob Goodlatte, closing plant in Virginia. programs as overly generous ing Member Collin Peterson, D- Agriculture Committee. “The R-Va., David Scott, D-Ga., and For details, see page 5. led to the defeat of the bill in Minn., says the farm bill failed House needs to fi nd a way to get other lawmakers to remove the House. to pass the House “because the a 5-year farm bill done. (House the DMSP from the legisla- ✦ Cheese on Canada’s list of “On this day, on this vote, House Republicans could not Speaker John Boehner, R-Ohio) tion passed Thursday before possible retaliatory tarrifs. the House worked its will. I’m control the extreme right wing needs to work in a bipartisan the House voted to reject the For details, see page 16. obviously disappointed, but the of their party.” way and present a bill that full farm bill. The amendment reforms in H.R. 1947 — $40 bil- “From day one, I cautioned Democrats and Republicans would have removed the supply my colleagues that to pass a can support. He could start by management provision from farm bill we would have to bringing the Senate bill to the the dairy title and replaced work together,” Peterson says. fl oor for a vote. it with a stand-alone margin U.S., EU to launch fi rst round “Instead, the House adopted a “Maintaining the status quo insurance program for dairy partisan amendment process, means no reform, no defi cit re- producers. of trade talks week of July 8 playing political games with duction and further uncertainty Although the farm bill failed extreme policies that have no that slows growth in our agricul- to pass the House, Jerry Slo- WASHINGTON — This week President Obama, European Commis- chance of becoming law. ture industry,” Stabenow adds. minski, senior vice president sion President Barroso and European Council President Van Rompuy “This fl ies in the face of “This is totally unacceptable.” of legislative affairs and eco- announced that the United States and the European Union (EU) will nearly four years of bipartisan The dairy title in the Sen- nomic policy for the Interna- be launching negotiations on a Transatlantic Trade and Investment work done by the agriculture ate version of the bill passed tional Dairy Foods Association Partnership (TTIP) agreement. The fi rst round of TTIP negotiations committee,” he adds. “I’ll con- last week includes the Dairy (IDFA) — which opposes the will take place the week of July 8 in Washington under the leadership tinue to do everything I can to Security Act (DSA), which DMSP — says that approval of the Offi ce of the U.S. Trade Representative (USTR). get a farm bill passed, but I have includes a controversial pro- of the Goodlatte-Scott amend- TTIP will be an ambitious, comprehensive and high-standard trade a hard time seeing where we go posal that would, in times ment shows that “momentum and investment agreement that offers signifi cant benefi ts in terms of from here.” of excess milk production, Turn to HOUSE, page 15 a promoting U.S. international competitiveness, jobs and growth, the White House says. In particular, TTIP will aim to: • Further open EU markets, increasing the $458 billion in goods and private services the United States exported in 2012 to the EU, its Co-ops commission study Milk production largest export market; is up 0.9 percent • Strengthen rules-based investment to grow the world’s largest invest- on California federal order in 23 major states ment relationship. The United States and the EU already maintain a total VISALIA, Calif. — A fi ve-month-long study commissioned by of nearly $3.7 trillion in investment in each other’s economies (as of 2011); California Dairies Inc. (CDI), Dairy Farmers of America Inc. WASHINGTON — Milk • Eliminate all tariffs on trade; (DFA) and Land O’Lakes Inc. (LOL) suggests a properly written production in the 23 major • Tackle costly “behind the border” non-tariff barriers that impede federal milk marketing order for California would provide a regu- milk-producing states dur- the fl ow of goods, including agricultural goods; latory structure that would potentially result in higher farm gate ing May 2013 totaled 16.53 • Obtain improved market access on trade in services; prices, which would benefi t California dairy farm families. The billion pounds, up 0.9 per- • Signifi cantly reduce the cost of differences in regulations and three cooperatives, which represent approximately 80 percent cent from May 2012, accord- standards by promoting greater compatibility, transparency and of the milk produced in California, collectively funded the com- ing to preliminary May data cooperation, while maintaining high levels of health, safety and envi- prehensive modeling study to examine the issues and benefi ts of released this week by USDA’s ronmental protection; replacing the California state milk marketing order with a federal National Agricultural Sta- • Develop rules, principles and new modes of cooperation on issues milk marketing order. tistics Service (NASS). (All of global concern, including intellectual property and market-based The study was conduced by Mark Stephenson, University of Wis- fi gures are rounded. Please disciplines addressing state-owned enterprises and discriminatory consin-Madison, and Chuck Nicholson, Penn State University. At this see CMN’s Milk Production localization barriers to trade; and time the proprietary study results will not be released to the public. chart on page 15.) Turn to TRADE, page 16 a Turn to STUDY, page 9 a Turn to MAY, page 15 a

Reprinted with permission from the June 21, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 2 CHEESE MARKET NEWS® — June 21, 2013 MARKET INDICATORS

Chicago Mercantile Exchange CHEESE FUTURES for the week ended June 20, 2013 Cash prices for the week ended June 21, 2013 (Listings for each day by month, settling price and open interest)

Monday Tuesday Wednesday Thursday Friday Fri., June 14 Mon., June 17 Tues., June 18 Wed., June 19 Thurs., June 20 June 17 June 18 June 19 June 20 June 21 JUN13 1.772 865 1.777 868 1.778 872 1.777 872 1.777 872 JUL13 1.779 708 1.789 714 1.772 720 1.779 732 1.769 746 Cheese Barrels AUG13 1.827 673 1.836 684 1.813 698 1.819 700 1.805 710 Price $1.7725 $1.7600 $1.7500 $1.7225 $1.7175 SEP13 1.856 573 1.865 584 1.848 586 1.848 623 1.848 603 Change NC -1 1/4 -1 -2 3/4 -1/2 OCT13 1.845 614 1.854 621 1.854 621 1.854 621 1.854 633 NOV13 1.830 813 1.830 826 1.826 826 1.822 826 1.822 836 Cheese 40-lb. block DEC13 1.790 724 1.790 734 1.786 738 1.786 742 1.786 758 Price $1.7150 $1.7250 $1.7250 $1.7250 $1.7250 JAN 14 1.759 60 1.759 65 1.759 65 1.759 70 1.759 70 FEB 14 1.735 31 1.737 31 1.737 31 1.737 31 1.737 31 Change -3/4 +1 NC NC NC MAR 14 1.740 18 1.740 18 1.740 18 1.740 23 1.740 23 APR 14 1.737 15 1.737 15 1.737 15 1.737 19 1.737 19 Weekly average (June 17-21): Barrels: $1.7445(-.0255); 40-lb. Blocks: $1.7230(-.0130). MAY 14 1.730 17 1.730 17 1.730 17 1.730 17 1.730 17 Weekly ave. one year ago (June 18-22, 2012): Barrels: $1.6035; 40-lb. Blocks: $1.6195. JUN 14 1.747 23 1.747 23 1.747 23 1.747 23 1.751 27 Total Contracts Traded/ Extra Grade NDM Open Interest 46/5,134 133/5,200 79/5,230 73/5,299 162/5,345 Price $1.7000 $1.7000 $1.7000 $1.7000 $1.7000 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. Change NC NC NC NC NC Grade A NDM DRY WHEY FUTURES for the week ended June 20, 2013 Price $1.7025 $1.7025 $1.7025 $1.7250 $1.7300 (Listings for each day by month, settling price and open interest) Change NC NC NC +2 1/4 +1/2 Weekly average (June 17-21): Extra Grade: $1.7000(NC); Grade A: $1.7125(+.0160). Fri., June 14 Mon., June 17 Tues., June 18 Wed., June 19 Thurs., June 20 JUN13 57.10 246 57.15 249 57.20 249 57.25 249 57.25 249 Grade AA Butter JUL13 57.25 277 57.50 278 57.55 277 57.50 277 57.45 276 $1.5350 $1.5300 $1.5075 $1.5075 $1.5000 AUG13 58.48 234 58.50 240 58.75 242 58.70 245 58.00 246 Price SEP13 58.50 227 58.50 226 58.98 230 58.98 230 58.00 231 Change NC -1/2 -2 1/4 NC -3/4 OCT13 59.50 153 58.55 154 59.00 154 59.00 154 58.75 154 NOV13 59.00 171 59.00 171 59.00 171 59.00 171 58.00 172 Weekly average (June 17-21): Grade AA: $1.5160(-.0240). DEC 13 59.00 162 59.00 162 59.00 162 59.00 162 59.00 162 Class II Cream (Major Northeast Cities): $2.0482(+.0449)–$2.2176(+.0910). JAN14 54.35 4 54.35 4 54.35 4 54.35 6 54.35 6 FEB14 50.00 4 50.00 4 50.00 4 50.00 6 50.00 6 MAR14 49.00 4 49.00 4 49.00 4 49.00 6 49.00 6 Sign up for our daily fax or e-mail service for just $104 a year. Call us at 608-288-9090. Total Contracts Traded/ Open Interest 10/1,482 27/1,491 15/1,497 59/1,506 5/1,508 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.

Weekly Cold Storage Holdings June 17, 2013 RETAIL PRICES (Consumer Price Index*) Percent change versus On hand Week Change since June 1 Last Year Monday Change Pounds Percent Pounds Change May 2013 1 mo. 6 mo. 1 year 2 years Cheese & related products Butter 18,146 +67 +529 +3 12,010 +6,136 222.834 +0.2 -0.2 +1.2 +3.6 Cheese 115,729 +3,310 +3,536 +3 129,058 -13,329 Dairy & related products 216.327 -0.8 -1.2 +0.1 +2.4 All Food 236.526 -0.1 +0.7 +1.4 +4.2 (These data, which include government stocks and are reported in thousands of pounds, are based on reports from a limited sample of cold storage centers across the country. This chart is designed to help the dairy industry see the *Source: U.S. Department of Commerce. For index, prices during 1982-84 = 100. trends in cold storage between the release of the National Agricultural Statistics Service’s monthly cold storage reports.)

Dry Products* June 21, 2013 CLASS III PRICE (Dollars per hundredweight, 3.5% butterfat test) NONFAT DRY MILK YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Central & East: low/medium heat $1.6800(+2)-$1.7725(+1 1/2); 2007 13.56 14.18 15.09 16.09 17.60 20.17 21.38 19.83 20.07 18.70 19.22 20.60 mostly $1.6900(+1)-$1.7300. 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 high heat $1.7500-$1.8500(+4 1/4). 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 West: low/medium heat $1.6500(+4)-$1.7600; 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 mostly $1.6900(+1)-$1.7300(+1/2). 2011 13.48 17.00 19.40 16.87 16.52 19.11 21.39 21.67 19.07 18.03 19.07 18.77 high heat $1.6600-$1.8200(+2). 2012 17.05 16.06 15.72 15.72 15.23 15.63 16.68 17.73 19.00 21.02 20.83 18.66 Calif. manufacturing plants: extra grade/grade A weighted ave. $1.6613(-.0009) 2013 18.14 17.25 16.93 17.59 18.52 based on 11,865,042 lbs. Sales to CCC: 0 lbs.

WHOLE MILK POWDER (National): $1.8000(-5)-$1.9500. STAFF SUBSCRIPTION INFORMATION Susan Quarne, 3XEOLVKHU &KHHVH0DUNHW1HZVŠ3XEOLFDWLRQ ,661 EDIBLE LACTOSE (PH 608/831-6002; FAX 608/831-1004)  LVSXEOLVKHGZHHNO\E\4XDUQH3XEOLVKLQJ//& (FOB)Central and West: $.5200(+4)-$.7500; mostly $.5800-$.7100. e-mail: [email protected] 6LJQDWXUH'ULYH0LGGOHWRQ:,3KRQH Kate Sander, (GLWRULDO'LUHFWRU )$;3HULRGLFDOVSRVWDJHSDLGDW0DGLVRQ:, (PH 509/962-4026; FAX 509/962-4027) &LUFXODWLRQUHFRUGVDUHPDLQWDLQHGE\4XDUQH3XEOLVKLQJ//& 6LJQDWXUH'ULYH0LGGOHWRQ:,POSTMASTER: DRY WHEY e-mail: [email protected] Send address changes to Cheese Market News®, Subscriber Alyssa Sowerwine, Central: nonhygroscopic $.4700-$.6200(-1); 6HQLRU(GLWRU Services, P. O. Box 628254, Middleton, WI 53562; Form (PH 608/288-9090; FAX 608/288-9093) mostly $.5150-$.5700. 3579 requested; or call direct at 608/831-6002.$OOULJKWV West: nonhygroscopic $.5700(+1 1/4)-$.6100(-1);  e-mail: [email protected] UHVHUYHGXQGHUWKH8QLWHG6WDWHV,QWHUQDWLRQDODQG3DQ$PHULFDQ Rena Archwamety, 1HZV:HE(GLWRU &RS\ULJKW &RQYHQWLRQV 1R SDUW RI WKLV SXEOLFDWLRQ PD\ EH mostly $.5725(+1 1/4)-$.6100. (PH 608/288-9090; FAX 608/288-9093) UHSURGXFHGVWRUHGLQDUHWULHYDOV\VWHPRUWUDQVPLWWHGLQDQ\ (FOB) Northeast: extra grade/grade A $.5425(-1/4)-$.6175(-1/4).  e-mail: [email protected] IRUP RU E\ DQ\ PHDQV PHFKDQLFDO SKRWRFRS\LQJ HOHFWURQLF Aaron Martin, 1HZV(GLWRU UHFRUGLQJRURWKHUZLVHZLWKRXWWKHSULRUZULWWHQSHUPLVVLRQRI ANIMAL FEED (Central): Whey spray milk replacer $.4075-$.5400. (PH 608/288-9090; FAX 608/288-9093) 4XDUQH 3XEOLVKLQJ //&  2SLQLRQV H[SUHVVHG LQ DUWLFOHV DUH  e-mail: [email protected] WKRVH RI WKH DXWKRUV DQG GR QRW QHFHVVDULO\ UHÁHFW WKRVH RI 4XDUQH 3XEOLVKLQJ //& GED &KHHVH 0DUNHW 1HZVŠ &KHHVH WHEY PROTEIN CONCENTRATE (34 percent): $1.2800(+2)-$1.4600(-2); REGULAR CONTRIBUTORS Š 0DUNHW1HZV GRHVQRWHQGRUVHWKHSURGXFWVRIDQ\DGYHUWLVHU mostly $1.3000(+2)-$1.3500(+2 3/4). John Umhoefer, Downes-O'Neill LLC, International Dairy DQGGRHVQRWDVVXPHDQGKHUHE\GLVFODLPVDQ\OLDELOLW\WRDQ\ Foods Association, National Milk Producers Federation SHUVRQIRUDQ\ORVVRUGDPDJHFDXVHGE\HUURUVRURPLVVLRQVLQ WKHPDWHULDOFRQWDLQHGKHUHLQUHJDUGOHVVRIZKHWKHUVXFKHUURUV DRY BUTTERMILK SUBSCRIPTIONS & BUSINESS STAFF UHVXOWIURPQHJOLJHQFHDFFLGHQWRUDQ\RWKHUFDXVHZKDWVRHYHU Subscription/advertising rates available upon request &RS\ULJKWE\4XDUQH3XEOLVKLQJ//& (FOB)Central & East: $1.5100-$1.6000. Contact: Susan Quarne - Publisher Subscriptions:IRU86VHFRQGFODVVGHOLYHU\ (FOB) West: $1.5500(+2)-$1.5825(+1 1/4); mostly $1.5600(+1)-$1.5750(+1). P.O. Box 628254, Middleton, WI 53562 IRU86ÀUVWFODVVGHOLYHU\LQFOXGLQJ&DQDGDDQG,QWHU PHONE 608/831-6002 • FAX 608/831-1004 QDWLRQDOUDWHWRDOORWKHUV3ULQWHGLQ86$ CASEIN: Rennet $4.3500-$5.0000; Acid $4.6000-$5.4000. WEBSITE: www.cheesemarketnews.com *Source: USDA’s Dairy Market News

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 June 21, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com June 21, 2013 — CHEESE MARKET NEWS® 3 NEWS/BUSINESS MARKET INDICATORS

Guggisberg winner of Dairy Month Contest

SUGARCREEK, Ohio — Guggisberg Steiner Dairy LLC, Baltic, Ohio, placed Cheese Co. placed first in both Swiss second; and Broad Run Cheese, Dover, and open classes of Ohio Swiss Cheese Ohio, placed third. Association Inc.’s recent National In the open class, Guggisberg Cheese Dairy Month Contest, which is the first Co.’s Baby Swiss placed fi rst, and Pearl of three contests that will determine Valley Cheese Co., Fresno, Ohio, placed the organization’s grand champion second and third with its Colby and and reserve champion cheesemakers Smoked Mild Swiss, respectively. for this year. The Ohio State Fair contest, the In the Swiss class, Guggisberg Cheese second of the three contests, will Co., Millersburg, Ohio, placed fi rst; E.S. be held July 10. CMN

International Dairy Markets June 21, 2013

Western Europe For more information please visit www.devilletechnologies.com Butter: 82 percent butterfat $5,000-$5,475(+175). Butteroil: 99 percent butterfat $5,700(+200)-$6,200(+200). CME FUTURES for the week ended June 20, 2013 Skim Milk Powder: 1.25 percent butterfat $4,000(+100)-$4,350(+100). Whole Milk Powder: 26 percent butterfat $4,600-$5,000(+150). Class III Milk Whey Powder: Nonhygroscopic $1,300(+25)-$1,475(+25). Fri., June 14 Mon., June 17 Tues., June 18 Wed., June 19 Thurs., June 20 Oceania JUN13 17.99 3,645 18.02 3,624 18.02 3,497 18.04 3,477 18.01 3,463 JUL13 18.03 4,208 18.17 4,193 17.98 4,195 18.04 4,149 17.92 4,190 Butter: 82 percent butterfat $3,700-$4,500. AUG13 18.52 3,400 18.69 3,430 18.46 3,402 18.48 3,369 18.36 3,415 Cheddar Cheese: 39 percent maximum moisture $4,000(-250)-$4,800(-100). SEP13 18.81 2,802 18.97 2,805 18.83 2,864 18.82 2,880 18.74 2,934 Skim Milk Powder: 1.25 percent butterfat $4,100(+100)-$4,650(-100). OCT13 18.79 1,985 18.89 1,988 18.82 1,990 18.84 1,984 18.77 2,004 NOV13 18.55 1,849 18.62 1,846 18.54 1,844 18.53 1,849 18.52 1,859 Whole Milk Powder: 26 percent butterfat $4,300(-100)-$5,200(-300). DEC13 18.16 1,747 18.16 1,746 18.13 1,747 18.12 1,748 18.12 1,753 Source: Dairy Market News. Prices reported in U.S. dollars per metric ton, F.O.B. port. To convert JAN14 17.60 554 17.63 558 17.62 559 17.62 561 17.60 566 to price per pound: divide price by 2,204.6 pounds. FEB14 17.25 455 17.27 456 17.27 456 17.27 457 17.26 458 MAR14 17.17 355 17.18 355 17.18 355 17.15 358 17.15 359 APR 14 17.15 284 17.17 288 17.15 289 17.14 291 17.16 292 MAY 14 17.16 189 17.20 189 17.15 209 17.11 210 17.15 211 JUN 14 17.15 114 17.15 120 17.15 136 17.14 137 17.15 138 Advanced Prices and Pricing Factors JUL 14 17.06 5 17.00 6 17.00 6 17.00 6 17.15 8 AUG 14 17.00 1 16.95 2 16.97 2 17.20 3 16.99 4 SEP 14 17.00 1 17.00 1 17.00 1 17.00 1 16.49 2 July 2013 June 2013 OCT 14 16.38 1 16.38 1 16.40 1 16.40 1 16.40 2 Base Skim Milk Price for Class I1: $13.50/cwt. $13.09/cwt. NOV 14 16.28 1 16.28 1 16.30 1 16.30 1 16.29 2 Advanced Class III Skim Milk Pricing Factor: $12.56/cwt. $12.77/cwt. DEC 14 16.80 1 16.80 1 16.80 1 16.80 1 16.80 2 Advanced Class IV Skim Milk Pricing Factor: Total Contracts Traded/ $13.50/cwt. $13.09/cwt. Open Interest 731/21,597 569/21,610 1,008/21,555 638/21,483 1,065/21,662 2 Advanced Butterfat Pricing Factor : $1.6803/lb. $1.8000/lb. Class IV Milk Class II Skim Milk Price: $14.20/cwt. $13.79/cwt. Class II Nonfat Solids Price: $1.5778/lb. $1.5322/lb. Fri., June 14 Mon., June 17 Tues., June 18 Wed., June 19 Thurs., June 20 Two-week Product Price Averages: JUN13 19.03 303 19.03 303 19.03 303 18.98 301 18.94 299 JUL13 19.30 353 19.30 353 19.30 353 19.22 353 19.16 371 Butter: $1.5590/lb. $1.6579/lb. AUG13 19.51 419 19.51 419 19.54 439 19.54 439 19.52 446 Nonfat Dry Milk: $1.6826/lb. $1.6367/lb. SEP13 19.53 346 19.53 346 19.54 351 19.50 361 19.53 378 Cheese: $1.7806/lb. $1.8388/lb. OCT13 19.20 264 19.20 264 19.28 270 19.28 270 19.28 275 NOV13 19.11 253 19.11 253 19.11 253 19.11 253 19.11 253 Dry Whey: $0.5710/lb. $0.5741/lb. DEC13 18.59 246 18.59 246 18.59 246 18.59 246 18.59 246 JAN 14 18.20 62 18.20 62 18.20 62 18.20 62 18.20 62 Note: The Class I price equals the Class I skim milk price times 0.965 plus the FEB 14 17.85 40 17.85 40 17.85 40 17.85 40 17.85 40 Class I butterfat price times 3.5, rounded to the nearest cent. MAR 14 17.50 41 17.50 41 17.50 41 17.50 41 17.50 41 For information only: The Class I base price is $18.91. Total Contracts Traded/ Open Interest 20/2,327 0/2,327 34/2,358 14/2,366 60/2,411 1/ Higher of advanced Class III or IV skim milk pricing factors. The Class I skim milk price equals this price plus applicable Class I differential. Cash-Settled NDM 2/ The Class I butterfat price equals the price plus applicable Class I differential divided by 100. Fri., June 14 Mon., June 17 Tues., June 18 Wed., June 19 Thurs., June 20 Data provided by USDA JUN13 168.50 321 168.50 321 168.50 321 168.50 321 168.50 321 JULY13 171.50 259 171.50 259 171.50 259 171.50 259 171.50 260 AUG 13 173.00 254 173.00 254 173.00 258 173.00 258 174.00 259 National Dairy Products Sales Report SEP 13 171.50 211 171.50 211 171.75 213 171.85 216 173.00 224 OCT13 168.75 151 168.75 152 169.00 154 169.00 154 169.00 156 For the week ended: 6/15/13 6/8/13 6/1/13 5/25/13 NOV 13 165.25 161 165.25 160 165.50 162 165.25 166 165.00 169 DEC 13 162.00 94 162.00 94 161.93 97 161.50 97 160.50 93 Cheese 40-lb. Blocks: JAN 14 160.98 9 160.98 9 160.75 9 160.75 9 160.00 9 Average price1 $1.7552 *$1.7774 *$1.8112 $1.8429 FEB 14 158.00 5 158.00 5 158.00 5 158.00 5 158.00 5 Sales volume2 10,932,931 *10,047,094 *11,750,203 12,079,201 Total Contracts Traded/ Cheese 500-lb. Barrels: Open Interest 18/1,465 5/1,465 25/1,478 14/1,485 38/1,496 Average price1 $1.8479 $1.8436 $1.8609 $1.8624 Cash-Settled Butter $1.7709 $1.7621 $1.7746 $1.7775 Adj. price to 38% moisture Fri., June 14 Mon., June 17 Tues., June 18 Wed., June 19 Thurs., June 20 Sales volume2 9,690,366 9,966,272 9,466,972 9,814,195 155.55 807 155.55 798 811 35.31 35.13 34.99 35.04 JUN13 155.55 155.55 811 155.55 805 Moisture content JUL13 159.40 818 159.10 825 158.13 834 157.20 847 156.70 857 Butter: AUG13 162.75 828 162.75 846 162.00 859 161.60 860 161.00 867 Average price1 $1.5688 *$1.5496 $1.6182 $1.6081 SEP13 164.50 802 165.00 808 164.13 829 163.63 856 163.00 860 Sales volume2 2,410,722 *2,510,695 4,978,513 3,007,123 OCT13 164.50 807 164.50 808 164.10 824 164.00 842 163.98 843 Nonfat Dry Milk: NOV13 164.80 895 164.25 918 163.60 919 163.55 969 163.75 976 DEC13 160.25 437 160.33 458 160.10 479 160.35 499 160.43 499 1 $1.6566 Average price $1.6816 $1.6839 $1.6691 JAN 14 160.23 9 160.23 12 159.30 12 159.30 12 159.30 12 Sales volume2 22,120,873 18,461,823 13,786,322 15,319,936 FEB 14 157.50 13 157.50 13 157.50 13 157.50 13 157.50 15 Dry Whey: MAR14 158.00 4 158.00 4 158.00 4 158.00 4 158.00 4 Average price1 $0.5742 *$0.5680 $0.5815 *0.5737 APR14 158.50 4 158.50 4 158.50 4 158.50 4 158.50 4 159.00 3 159.00 3 3 159.00 3 2 7,934,618 *8,282,578 7,499,456 *9,317,743 MAY14 159.00 159.00 3 Sales volume JUN14 159.50 2 159.50 2 159.50 2 159.50 2 159.50 2 */Revised. 1/Prices weighted by volumes reported. 2/Sales as reported by participating manufacturers. Total Contracts Traded/ Open Interest 132/5,429 86/5,499 219/5,593 175/5,722 79/5,747 Reported in pounds. More information is available by calling AMS at 202-720-4392. Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.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 June 21, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 4 CHEESE MARKET NEWS® — June 21, 2013 GUEST COLUMNISTS

standing biofi lms, preventing biofi lms Biofi lm development can reduce fl ow and monitoring for a biofi lm. of liquids through some equipment, Perspective: Improving milk quality is an impor- causing resistance to standard chemi- Industry Issues tant topic not just in the United States cal and sanitation approaches, and they but globally, as was refl ected in many of contaminate new milk streams with the examples given in this session. Dr. high numbers of their host bacteria. John Lucey is director of the O’Brien described milk quality improve- Given the concerns over biofi lms, it is Wisconsin Center for Dairy ment programs in New Zealand and important to monitor all areas of produc- Research at the University of Ireland geared toward reducing total tion for signs of biofi lm formation. Dr. Wisconsin-Madison. He is a guest bacteria and somatic cell counts on the Johnson pointed out several “red fl ags” columnist for this week’s Cheese farm. These strategies include penalties that can indicate a biofi lm formation Market News®. for exceeding maximum levels, online somewhere in the system. These signs resources to deal with seasonal mastitis include a high number of Lactobacillus issues, setting of goals for an individual bacteria in pasteurized milk, faster farm, detailed protocols for drying-off rates of acidifi cation in cheese vats later and mastitis treatment, etc. in the day and a glistening surface or Dr. Johnson emphasized that we fi lm on equipment. need to better understand the impor- Erickson discussed various strate- tance of biofi lms, their prevention, and gies to prevent and remove biofi lms Dairy product quality and biofi lms how to know if you have a biofi lm issue and spore-formers. Some biofi lm issues (in order to take corrective action). start on the farm as research shows As the dairy industry knows, product ence in La Crosse, Wis. Speakers Simply put, a biofi lm is a result of the that buildup on milking equipment quality can be jeopardized by the devel- included Dr. Bernadette O’Brien, adherence of microorganisms to a sur- and non-hygienic milking practices can opment of a biofi lm. Whether the biofi lm from the Moorepark Research Centre, face. More specifi cally, a biofi lm occurs contribute to the formation of biofi lms; issue starts on the farm or develops in Ireland; Dr. Mark Johnson from the when bacteria begin to build up inside of however, these causes can be hard to the dairy plant equipment, identifying Wisconsin Center for Dairy Research; equipment. As the microorganism popu- trace. Buildup in the gaskets of pas- and eliminating a biofi lm can be a time- Tony Erickson, principal chemist at lation increases they secrete a sticky teurizers, diffi cult to reach areas like consuming and expensive undertaking Ecolab; and Karl Kieffer, Tetra Pak material, known as exopolysaccharides, dead-ends or straight angles for pipes, for any operation. Inc. They discussed a range of issues which is responsible for the gooey fi lm low fl ow areas, or cooler regions within To provide the industry with the including international perspectives that makes biofi lms so hard to remove. equipment (which may not achieve the latest insights into milk quality issues, on milk quality, biofi lm formation, As the biofi lm development enters its correct “hot” cleaning temperature including biofi lms, a session titled sanitation and spore control. During later phases, it becomes more likely during CIP) also are possible causes. “Milk Quality, Biofilms and Dairy the discussion, three key points were that microorganisms from the original Keep in mind that biofi lms can take a Products” was held at the April 2013 continually reinforced by members of biofi lm may slough off and contaminate long time to build up, and standard CIP Wisconsin Cheese Industry Confer- the panel: the importance of under- another area of the equipment/product. Turn to LUCEY, page 6 a

Perspective: Dairy Markets

Eric Meyer is president of HighGround Dairy, Chicago. He is a guest columnist for this week’s Cheese Market News®.

Where are cheese prices headed?

Look to NDM for direction ing the average price increase over the an extended period of time. The fi rst past six years, a typical July-December occurred in April 2007, where Class IV Much of the chatter in 2013 on dairy been so-so and January-April cheddar block cheese average price would be settled higher than Class III for eight commodity price direction has been exports have fallen 9.3 percent behind something near $1.94/lb. CME futures consecutive months. The other began driven by the international market- last year’s totals. So where do we head are fading that number a bit, presently in March 2010 and lasted for 16 straight place. Drought in New Zealand sent from here? forecasting just a 6 percent increase. months. During the 2007 incident, prices skyward in March and held at I believe the calendar is important Unless there is another economic butter prices remained relatively fl at extreme levels through mid-May when when determining price direction. Since meltdown, it is doubtful that we will see (min $1.29 – max $1.49) while nonfat rains came to alleviate the dryness the beginning of the U.S. dairy “export” signifi cant demand destruction during dry milk (NDM) prices went from $1.19 in that region. Lower milk output in era (2007), second half CME monthly the second half of this year. And while (March 2007) to over $2.00/lb. in just Europe and relatively fl at production block cheddar prices have increased not impossible, it is tough to paint that four months. Cheese prices followed in the United States also helped fan the by 13 percent on average over the fi rst picture. Domestic fundamentals are so- suit, beginning at $1.37/lb. and climbing fl ames ensuring prices would remain half. The only year we saw prices de- so, but the global supply/demand picture over $2.00 during that same four month above average for a prolonged duration. cline during the July-December time is stabilizing. And with shaky data from time frame. And in 2010, sharply higher But since then, U.S. milk production frame was due to the global economic the global cheese market, perhaps we butter prices kept Class IV milk higher has stabilized, domestic stocks are recession which brought nearly every have to look elsewhere for direction. than Class III but it wasn’t until NDM seemingly robust across nearly every food commodity down with it. In 2013, Since 2007, there have been two prices began making a swift ascent commodity and when looking specifi - January-June CME block cheddar prices instances where Class IV milk has during the latter months of the Class cally at cheese, fi rst quarter demand has will average approximately $1.72/lb. Us- trended higher than Class III milk for Turn to MEYER, page 6 a Reprinted with permission from the June 21, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com June 21, 2013 — CHEESE MARKET NEWS® 5 NEWS/BUSINESS Dean Foods Co. closing Springfi eld, Va., plant, phasing out Shenandoah’s Pride brand DALLAS — Dean Foods Co. recently eliminated as a result of the closure, Schuler says Dean Foods will move they enjoy today, now offered under announced that it is closing its Shenan- although the company will maintain the current production volume to other the Lehigh Valley brand,” Schuler says. doah’s Pride milk plant in Springfi eld, about 40 positions for local distribution regional company facilities and will be “We regret the impact that this Va. Production will be phased out over and sales, says Jamaison Schuler, senior transitioning from the Shenandoah’s decision will have on our employees the next two months. manager of corporate communications, Pride brand name to Lehigh Valley Dairy and our community,” Schuler adds. Approximately 110 positions will be Dean Foods Co. Farms and PET brand throughout the “The decision to eliminate jobs in any rest of this year. part of our business is never an easy NMPF: TPP must help open Canadian market The Shenandoah’s Pride brand one. We need to improve our supply includes fl uid milk, shelf stable milk, chain capability, and operating fewer WASHINGTON — The National Milk NMPF says dairy trade was es- ice cream mixes, ice cream, cottage plants will help us streamline our op- Producers Federation’s (NMPF) board of sentially excluded from the 1988 U.S.- cheese, sour cream, chip dip, yogurt, erations. The decision to discontinue directors last week approved a resolution Canada trade agreement (later folded teas and juices. production at this location does not that opposes any Trans-Pacifi c Partnership into the North American Free Trade “Our retail customers are aware refl ect the quality of work performed (TPP) agreement that does not provide Agreement). Even though Canada is the of this transition, and consumers can by our employees, but the competi- for signifi cantly increased access to the second-largest export market for U.S. continue to expect the same quality milk tive nature of the marketplace.” CMN Canadian dairy market. As part of the reso- dairy products (mostly imported under a lution, NMPF’s board also urged the U.S. re-export program), the potential for ad- WOW facilities earn high marks in audits Trade Representative’s Offi ce and USDA to ditional exports is far greater than what negotiate an agreement with Canada that currently is allowed under Canada’s APPLETON, Wis. — WOW Logistics, the cleanliness of WOW facilities, as well eliminates barriers to trade and provides restrictive tariff system, NMPF adds. which stores and handles food-grade as the strength of standard operating for mutually open dairy markets. “TPP presents a critical opportunity products, recently earned high marks procedures (SOP) we have in place,” “From the outset, NMPF has ap- for us to fi nally liberalize U.S.-Canada for its facilities in a series of indepen- says Scott Gleason, vice president of plauded the inclusion of Canada in dairy trade — an issue that has taken dent audits conducted by ASI Food operations, WOW Logistics. “Perhaps the TPP dialogue, given the signifi cant on increasing importance in light of the Safety Consultants. more important than the SOPs them- export opportunities that Canada offers robust efforts by Canada to impede even The WOW Logistics warehouse and selves, however, is that our employees to our industry,” says Jim Mulhern, chief the limited access currently available transportation facility in Jerome, Idaho, embrace the practices 100 percent. This operating offi cer, NMPF. “As the U.S. to U.S. dairy exporters,” Mulhern says. achieved a perfect ASI audit score on its commitment ensures that our custom- prepares to intensify market access NMPF supports the TPP negotiations 2013 inspection. Likewise, other WOW Lo- ers’ products receive the highest level discussions with TPP partners in its ef- and “hopes that the fi nal agreement will gistics locations scored three “excellent” of care and service.” fort to bring the talks to a close, NMPF result in one that provides net benefi ts ratings and three “very good” ratings. To learn more visit believes it is important to underscore to U.S. dairy producers,” Mulhern adds. “Our audit scores are a testament to wowlogistics.com. CMN the necessity of opening the Canadian “Opening the Canadian dairy market is a dairy market as part of this agreement.” linchpin to achieving that result.” CMN Gilman Cheese is fi ned by OSHA, cited for violations after worker’s fi ngers amputated GILMAN, Wis. — The U.S. Department ing powered industrial vehicles without of Labor’s Occupational Safety and adequate training and inspections; using Health Administration (OSHA) recently a fl exible cord as permanent wiring; cited Gilman Cheese Corp., Gilman, lack of an electrical safety program; Wis., for 10 safety violations totaling and failing to provide training on blood- $126,700 in proposed fi nes. OSHA says borne pathogens to those who cleaned a worker had two fi ngers amputated equipment following the amputation. by an unguarded cheese packing and A serious violation occurs when there labeling machine at the Gilman factory. is substantial probability that death or A January inspection was prompted by serious physical harm could result from a referral, and OSHA found that another a hazard about which the employer knew worker suffered a similar amputation in or should have known. January 2012. OSHA cited Gilman Cheese for two “This tragedy could have been other-than-serious violations including prevented if Gilman Cheese Corp. obstructing a means of egress and using ensured adequate machine guarding compressed air greater than 30 pounds and lockout/tagout procedures,” says per square inch for cleaning. An other- RMC Mark Hysell, OSHA’s area director in than-serious violation is one that has Eau Claire, Wis. “Too often, compro- a direct relationship to job safety and mised safety procedures have tragic health but probably would not cause Superior Cooling, Shape, consequences. OSHA is committed to death or serious harm. Production, and Flexibility protecting workers on the job.” Because of the hazards and willful Two willful violations cited by OSHA violations cited, OSHA has placed Gil- With the highest production volume in the world, the RMC (Rotary Molder Chiller) involve failing to develop and train man Cheese Corp. in its Severe Violator forms and cools large volumes of workers on machine-specifi c lockout Enforcement Program, which mandates mozzarella, provolone, and pizza procedures to prevent unexpected start- targeted follow-up inspections to ensure cheese in various shapes based on up during servicing and maintenance, compliance with the law. Under the your requirements. and to provide adequate machine guard- program, OSHA may inspect any of the ing. A willful violation is one committed employer’s facilities or job sites. Available in multiple sizes with quickly with intentional, knowing or voluntary The company has 15 business days interchangeable molds to accommodate disregard for the law’s requirements, from the receipt of the citations to your production demands. or with plain indifference to worker comply, request an informal conference safety and health. with OSHA’s area director, or contest Additionally, six serious violations the citations and penalties before the FOR MORE INFORMATION, VISIT US ON THE WEB AT involved inadequate guarding on a bench independent Occupational Safety and www.johnsonindint.com grinder and a portable grinder; lack of Health Review Commission. adequate emergency eyewash stations Gilman Cheese did not return a re- for workers handling corrosives; operat- quest for comment by press time. CMN For more information please visit www.johnsonindint.com Reprinted with permission from the June 21, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 6 CHEESE MARKET NEWS® — June 21, 2013 GUEST COLUMNISTS

MEYER supply picture out of the main exporting LUCEY Other suggestions include minimizing regions (Oceania, United States, Euro- the size of heat exchangers to have Continued from page 4 Continued from page 4 pean Union). I have a hard time seeing less residence time and keeping milk crumbling demand at current price temperatures as low as possible to re- IV premium that cheese prices were levels and do not see an opportunity for chemistry is less effective on established duce the possibility of bacterial growth. sent aloft. heavy milk supplies to weigh on any of biofi lms so they also can take a long to Bactofugation (can be installed in se- It is extremely rare that NDM prices these regions for some time. time to remove. To control spores in milk ries to increase the effi ciency of spore are higher than cheese prices in the But the upside risks? Weather has powders the target should not only be removal) and microfi ltration are two United States. But as of this past week, a lot to do with them and at present, the raw milk supply, but also biofi lms separation technologies available for the CME spot Grade A NDM price is dan- milking conditions could not be better in evaporators and related equipment. spore removal from raw milk. gerously close to trading at a premium in most regions of the United States. Erickson suggested considering options Biofi lms are the natural state of to the spot block cheddar price. Global Deteriorating weather this summer like peracid sanitizing, intermediate microorganisms in the environment, skim milk powder prices appear to have has the potential to add premium to peracid fl ushes, intermediate quick- so continued research into this area stabilized and are trending slightly the U.S. market. And any delay in the clean and “hot” sanitizer use as possible will be necessary as we work to limit higher, which will lend support to U.S. beginning of New Zealand’s milk pro- interventions but each method comes the negative effects of biofi lms on the NDM prices. This leads me to believe duction season at the end of the third with benefi ts and drawbacks so fi nding dairy industry. Cleaning and sanitation that support in NDM also will bring quarter will send patient buyers back the correct method can take a bit of programs are always essential elements support to the cheese market. into panic mode. Incremental demand experimentation and research. Ecolab is of high-quality dairy products and close During the second half of 2013, it is also comes to mind in the international partnering with companies to research attention to the biofi lm issue both on the my opinion there is more upside risk market. New consumer demand has best-practice intervention outcomes. farm and in milk processing facilities to cheese prices than there is to the the potential to be explosive as more To avoid biofi lms in equipment, will help industry to prevent this costly downside. Given present conditions, it of the Asian population moves into the Tetra Pak’s Karl Kieffer recommended issue and will lead to more consistent, is hard to fathom cheese prices making middle class. short run times for heat exchangers high-quality dairy products. CMN a substantial run over $2.00. But it is Therefore, we must keep a close (with proper cleaning and sanitation even more diffi cult to paint a picture eye on the NDM market’s direc- between runs) or having a second The views expressed by CMN’s guest of sub-$1.70 prices over the next six tion and all others that correlate heat exchanger (in parallel) to allow columnists are their own opinions months given the $0.30+ discount to in the international market. Where processing to continue while the other and do not necessarily refl ect those of the global market. CWT has renewed NDM prices go, so may go the rest heat exchanger unit is undergoing CIP. Cheese Market News®. its export subsidy program for the next of the nation’s dairy market. CMN two years and doubled its fi nancial commitment to $0.04/cwt. The views expressed by CMN’s guest What are the downside risks? columnists are their own opinions NEWS/BUSINESS Domestic and/or global demand de- and do not necessarily refl ect those of ® struction or a better-than-expected Cheese Market News . CDR helps bring Smári yogurt to Wisconsin MADISON, Wis. — Smári is now pro- helpful, even pivotal to our successful ducing its organic Icelandic yogurt startup. He is a superb operator and at Westby Cooperative Creamery, craftsman. We started with a recipe Westby, Wis., and is distributing it imported from Iceland, but Mike re- nationwide thanks to assistance ally taught us the ‘why’ behind much from the Wisconsin Center for Dairy of that recipe.” Research (CDR). Once the CDR pilot plant trials Smári co-founders Smári Ásmunds- were complete, the operation moved Serving Up son and Doug Stewart set out to market to Westby Creamery where the com- “super strained” organic Icelandic mercial equipment was installed. The Fresh Ideas Since 1949 yogurt, which contains 20 grams of CDR processing group was there to protein per 6 ounce cup, in September assist with troubleshooting. Experts in Dairy Markets Your Single Source for 2011. Shortly after, Ásmundsson and “Had CDR not been available during Obtaining a Comprehensive Stewart partnered with CDR and Westby those critical moments, we’d likely be s #OMPREHENSIVE5NDERSTANDINGOF Selection of Dairy Products -ARKET4RENDS 0RODUCT3OURCES Cooperative Creamery to launch the out of business by now,” Stewart says. 0RICE&LUCTUATIONSAND6OLATILE s &LUID-ILK new Smári line. “I’ve launched enough businesses, 'OVERNMENT2EGULATIONS s "UTTER “We were looking for a supplier succeeded in enough businesses and of organic, pasture-based Guernsey failed in enough of them to say that s &EDERAL/RDER0OOLING s #HEESE s 2AW-ILK5&2/ and Jersey cow’s milk and (Westby with confi dence.” s &ORWARD#ONTRACT0RICING s #REAM Creamery) was looking for an outlet,” In January 2013, sales of Smári yo- s )NGREDIENT#OST-ANAGEMENT s .ONFAT$RY-ILK Stewart says. “With room to grow and gurt began. By March, Westby Creamery s ,OGISTICS-ANAGEMENT s 7HEY0OWDER great logistics, Westby Creamery has was processing an average of 2,000 made this portion of our business easy.” gallons of milk each week for Smári While Westby Creamery was able to yogurt. In May of 2013, the milk volume provide processing space, Smári sought increased to 4,000 gallons each week, technical help to scale up its yogurt and sales are projected to be between processing. Three CDR staff members, $1-$2 million dollars this year. Mike Molitor, process pilot plant man- “I read all the time about how ager; Ray Michels, cheesemaker; and America and its economy is broken Becky Kalscheuer, associate research and in decline, but from an outsider’s specialist; were enlisted to help. Two perspective, there’s nothing broken prototype batches of strained yogurt about Wisconsin’s dairy industry and the were produced using a spiral ultrafi ltra- Wisconsin Center for Dairy Research,” tion system Molitor built and had been Stewart says. “Our story is a shining T.C. Jacoby & Co. utilizing to produce various strained example of how public and private 1716 Hidden Creek Court products. partnerships work to create good paying St. Louis, MO 63131 314/821-4456 “What we are doing is technically jobs, great products, real companies and 1-800-877-9556 diffi cult by any standard,” Stewart says. a vibrant economy.” Fax: 314/821-3251 “We are the fi rst company in the United Smári yogurt is being sold in www.jacoby.com Contact Ted C. Jacoby III States to use this method to manu- seven of the 11 Whole Foods regions facture strained yogurt. Despite the as well as several natural foods For more information please visit www.jacoby.com challenges, Mike has been amazingly stores around the country. CMN Reprinted with permission from the June 21, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com June 21, 2013 — CHEESE MARKET NEWS® 7 NEWS/BUSINESS

Kraft Foods Group plans to create new business units to increase brand-building efforts NORTHFIELD, Ill. — Kraft Foods The new business units will include executive vice president and president, president of marketing for Oscar Group this week announced plans to many of Kraft’s leading brands. Kraft Meals and Desserts, and Jane Hilk, Mayer. Under her leadership, the busi- create two new, standalone business Mac & Cheese dinner and Velveeta executive vice president and president, ness launched groundbreaking new units: Meals and Desserts, and Enhanc- dinners and meal kits are among the Enhancers and Snack Nuts. advertising campaigns for its fl agship ers and Snack Nuts. Kraft says with the brands in the Meals and Desserts busi- Osanloo currently is executive vice brands and introduced Oscar Mayer creation of these new business units, it ness unit. Other brands in this unit will president and president of Kraft’s Selects, one of Kraft’s newest $100 will be able to place even greater focus include Cool Whip whipped topping, Grocery business unit. He spearheaded million product lines. on brand-building while reducing the Jet-Puffed marshmallows, Jell-O dry the reinvigoration of Kraft Macaroni “These businesses have many complexity of managing a portfolio packaged and ready-to-eat desserts, & Cheese and Velveeta dinners. His of Kraft’s most well-known and with many distinct brands and product Shake ‘N Bake coatings and Stove Top team also launched one of Kraft’s most celebrated brands,” Vernon says. categories. The new business structures stuffi ng mix. recent new products, Velveeta Cheesy “I’m excited to have two of our and leadership appointments are effec- The Enhancers and Snack Nuts Skillets. most seasoned and strategic leaders tive July 1. unit will include brands such as A.1. Hilk is a 22-year veteran at Kraft bringing their considerable talents “Since we launched the new Kraft, steak sauce, Grey Poupon premium who currently serves as senior vice to these brand franchises.” CMN we’ve focused heavily on turbocharging mustards, Kraft and Bulls-Eye barbe- our iconic brands. And we’ve made a lot cue sauces, Kraft and Good Seasons Raw milk dairy taps into crowdfunding of progress thanks to great marketing dressings, Kraft and Miracle Whip and innovation,” says Tony Vernon, Kraft spoonable dressings, Planters nuts, FRAMINGHAM, Mass. — Eastleigh Farm, which is at www.igg.me/at/happycows, CEO. “With the creation of our two new- trail mixes and peanut butters. the largest provider of raw milk dairy prod- features a theme of virtual gaming. est business units and great leaders in Kraft will begin reporting the fi - ucts in Massachusetts, recently announced People can be recognized as sponsor place, we’re taking an important step nancial results of these business units the launch of its fi rst fundraising campaign “farmers” of actual 100-square-foot to strengthen our focus on some of the as separate segments at the end of its on Indiegogo.com to save the farm. plots of land and receive certifi cation. most beloved brands in North America.” third fi scal quarter 2013. The company According to owner Doug Stephan, Nine-acre plots also can be purchased The business units are being cre- also will make historical results for Eastleigh Farm is in danger of being with the understanding of keeping the ated by dividing the company’s Grocery these new segments available by the lost to development. With the support land operating as Eastleigh Farm. segment into two standalone business end of its third quarter. of organizations including the Weston The campaign already has surpassed units. This does not affect Kraft’s The leaders of the new business A. Price Foundation and others, the its goal of $5,000, raising more than Cheese segment, which is a separate units, who will report directly to CEO Eastleigh Farm crowdfunding campaign $6,300. Funds may be contributed business unit. Tony Vernon, are Michael Osanloo, was launched June 5. The campaign, via the site through July 27. CMN Pearl Valley Cheese installs green system that uses waste water to generate energy FRESNO, Ohio — Pearl Valley Pearl Valley’s previous system used a Cheese Co. has installed a green low-pressure moisture removal system. energy system that uses waste water GEM Energy says it designed a high- WHERE’S from cheese production to generate pressure moisture removal system to electricity. The system could save the make the gas work with the Capstone company more than $40,000 a year MicroTurbine. The system allows Pearl THE CHEESE? in electricity costs. Valley to operate on multiple energy The system, custom-designed and sources, including electricity, natural Come one, come all to bid, installed by GEM Energy, Walbridge, gas and biogas — which reduces the mingle and have fun! Ohio, is fueled by methane gas released impact of sharp increases in cost for by the waste water. It’s powered by a C65 any single energy source. Join us at the 2013 Blue Ribbon Cheese & Butter Capstone MicroTurbine. The company Pearl Valley Cheese manufactures Auction — sponsored by the Wisconsin State Fair says the system will reduce its use of 25,000 pounds of cheese per day and Dairy Promotion Board — on Friday, August 9. coal-generated electricity and green- distributes natural cheeses throughout Meet the award-winning cheesemakers and find house gas emissions. the eastern United States. The com- out who will be named the 2013 Grand Master “This project demonstrates Pearl pany’s 40,000-square-foot operation Valley’s commitment to the health and houses a retail store, administrative Cheese Maker. safety of the community,” says Chuck offices, cold storage warehousing Mark your calendar... Ellis, president, Pearl Valley Cheese. and manufacturing facilities. CMN Friday, August 9 3AZS(OSPITALITY6ILLAGEs7ISCONSIN3TATE&AIR0ARK Danone acquires organic baby food company 5 p.m. – Reception 6 p.m. – Cheese Maker Recognition & Auction PARIS — Danone recently signed an its brands,” says Felix Martin Garcia, To purchase tickets, contact Katy Katzman agreement to acquire an equity interest executive vice-president of baby nutri- at (262) 903-6727 or [email protected]. of more than 90 percent in Happy Family. tion division, Danone. Launched in 2006, Happy Family, The transaction is subject to the ap- New York City, holds more than 4 percent proval of the relevant authorities and of the baby food market in the United is expected to be fi nalized in the next States. Its gross sales total more than few months. $60 million, and the company antici- “By joining Danone, Happy Family pates growth in 2013. Specializing in will benefi t from the expertise of a products made with organic ingredi- major international group, in particu- ents, Happy Family has been a driver lar for distribution and its renowned in the baby food category’s growth over R&D capabilities,” says Shazi Visram, the past few years. founder and CEO, Happy Family. “We are “We are delighted with this acquisi- thrilled, as this agreement will allow us tion in an innovative and fast-moving to further our goal of providing organic segment of the baby food market. nutrition to more children, both by mak- Auction proceeds fund student scholarships as well as Building on a business model that has ing our products more available and by dairy promotions at the Wisconsin State Fair. proven its effectiveness, we plan to step continuing to provide new innovations up the development of Happy Family and to the baby and toddler category.” CMN For more information please e-mail [email protected] Reprinted with permission from the June 21, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 8 CHEESE MARKET NEWS® — June 21, 2013 NEWS/BUSINESS

Licensed cheese imports drop in May, total 61.9 million pounds YTD TWI up 1.1 percent, WASHINGTON — U.S. imports of cheeses in May totaled 678,360 pounds, totaled 5.6 million pounds in May, up prices mixed on GDT cheese subject to licensing require- down 79 percent from May 2012. Li- 8 percent from May 2012. January-May ments totaled 12.6 million pounds censed imports of Italian-type cheeses imports of other cheese NSPF total 28.4 AUCKLAND, New Zealand — The in May, a 12-percent drop from May January-May total 3.7 million pounds, million pounds, up 5 percent from the trade weighted index (TWI) was up 2012, according to the most recent down 48 percent from the same 2012 same period in 2012. 1.1 percent and prices were mixed fol- data released by USDA’s Foreign period. May licensed butter imports totaled lowing the latest auction Tuesday on Agricultural Service. January-May May Cheddar imports subject to 852,345 pounds, up 43 percent from GlobalDairyTrade (GDT), Fonterra’s licensed cheese imports total 61.9 licensing requirements totaled 562,252 a year earlier. January-May licensed internet-based sales platform. million pounds, down 1 percent from pounds, down 18 percent from May butter imports total 4.0 million pounds, The average price achieved across the same period last year. (The fi gures 2012. January-May licensed Cheddar up 50 percent from the same period all contracts and contract periods was released by USDA are in kilograms; imports total 3.8 million pounds, down last year. 4.7 percent for butter at US$3,925 per Cheese Market News has converted 1 percent from the fi rst fi ve months May licensed imports of butter sub- metric ton FAS ($1.7804 per pound). The the data to pounds by multiplying of 2012. stitutes totaled 377,353 pounds, down average price for anhydrous milkfat was by 2.2046.) Licensed imports of processed 64 percent from May 2012. January-May US$4,589 per metric ton FAS ($2.0815 Licensed imports of Swiss and Em- Gruyere in May totaled 448,960 pounds, licensed imports of butter substitutes per pound), up 1.7 percent; skim milk menthaler with eye formation totaled up 86 percent from May 2012. Year-to- total 2.5 million pounds, down 49 per- powder was US$4,284 per metric ton FAS 3.8 million pounds in May, up 3 percent date licensed imports in this category cent from January-May 2012. ($1.9432 per pound), up 3.2 percent; from May 2012. January-May imports through May total 1.9 million pounds, Imports of high-tier cheese and and whole milk powder was US$4,668 in this category total 17.3 million up 3 percent from the same months other dairy products has reached 10.8 per metric ton FAS ($2.1174 per pound), pounds, up 3 percent from the same in 2012. million pounds so far this year through up 2.2 percent. period last year. Imports of Blue mold cheeses sub- May, down 5 percent from January-May The average price for Cheddar was Edam and Gouda imports subject ject to licensing requirements totaled 2012. Leading high-tier imports are down 6.5 percent at US$4,578 per metric to licensing requirements totaled 1.1 393,861 pounds in May, up 33 percent Italian-type cheeses, with 5.0 million ton FAS ($2.0765 per pound) and down million pounds in May, up 11 percent from a year earlier. January-May li- pounds imported through May, down 2.2 percent for buttermilk powder at from a year earlier. Year-to-date imports censed imports of these cheeses total 13 percent from the same period last US$4,315 per metric ton FAS ($1.9573 of these cheeses through May total 4.7 2.2 million pounds, up 15 percent from year. Following this category is other per pound). million pounds, up 18 percent from January-May last year. cheese NSPF with 2.3 million pounds The next trading event will be January-May 2012. Licensed imports of other cheese imported through May, down 7 per- held July 2. For more information, Licensed imports of Italian-type not-specifi cally-provided-for (NSPF) cent from January-May 2012. CMN visit www.GlobalDairyTrade.info. CMN Wis. raw milk dairy farmer fi ned $1,000 BARABOO, Wis. — Vernon Hershberg- placed on items in his store in 2010. ANALYTICAL CONTROL SOLUTIONS er, a Wisconsin dairy farmer who last (See “Wis. raw milk farmer acquitted month was acquitted on three counts on three counts” in the May 31, 2013, and found guilty of one count relating issue of Cheese Market News.) The to the sale of raw milk and other food charge carried a maximum penalty For items without a license, has been fi ned of 12 months of incarceration, a fi ne $1,000 and assessed $513 in court fees of $10,000 and the retail value of the following his June 13 sentencing hear- product moved, sold or disposed of in instant, ing at the Sauk County Courthouse in violation of the order. Baraboo, Wis. He was given no jail time Two supporters attending the hearing accurate and no probation. wrote checks to cover all of his fi ne and Hershberger was found guilty May 25 court fees, according to an update from of violating a food holding order that the the Farm-to-Consumer Legal Defense process Wisconsin Department of Agriculture, Fund, which provided legal representa- Trade and Consumer Protection had tion for Hershberger in the case. CMN control. IDFA, Dairy Today seek nominees for 2014 Innovative Dairy Farmer of the Year Award If it flows through a pipe, we can help you WASHINGTON — Nominations are ceremony held during the program. maximize profits! now being accepted for the Innovative The person nominating the winner will ProSpect™ process control reduces waste, increases productivity Dairy Farmer of the Year, an annual receive complimentary registration to and leads to higher profits, all for very low cost of ownership. award co-sponsored by International the Dairy Forum. In addition, the win- ProSpect™ works with any platform and is capable of in-line, real Dairy Foods Association (IDFA) and ning operation will be highlighted in time, continuous analysis and control of multiple applications. Dairy Today magazine. the January 2014 issue of Dairy Today. APPLICATIONS: The winner will be honored at the 2014 Previous winners include: Mc- Ř:KH\3URWHLQ&RQFHQWUDWH Ř&KHHVH0LON6WDQGDUGL]DWLRQ Dairy Forum at the JW Marriott Desert Carty Family Farms, Bexford, Kan.; Ř%XWWHU&KXUQ&RQWURO Ř0XOWLSOH&RPSRQHQW6WDQGDUGL]DWLRQ Springs, Palm Desert, Calif., Jan. 26-29. Sweetwater Valley Farm, Philadel- The deadline for nominations is Sept. 16. phia, Tenn.; Brubaker Farms, Mount The call asks for nominations of Joy, Pa.; Haubenschild Dairy Farm, active U.S. dairy farms that are im- Princeton, Minn.; High Plains Dairy, proving on-farm effi ciency through Friona, Texas; Mason Dixon Farms, progressive management practices, Gettysburg, Pa.; Clauss Dairy Farms, production technologies and/or mar- Hilmar, Calif.; Baldwin Dairy/Em- keting approaches. Nominees will be erald Dairy, Emerald, Wis.; Si-Ellen judged on current methods as well Farms, Jerome, Idaho; Pagel’s Pon- 888.980.1216ŘSURVSHFWDQDO\WLFDOFRP as their positioning to meet future derosa Dairy, Kewaunee, Wis.; C Bar economic and business challenges. M Dairy, Jerome, Idaho; North Florida 35(&,6,21Ř3(5)250$1&(Ř727$/&21752/ The award recipient will receive Holsteins,Bell, Fla.; KF Dairy, El Cen- an all-expenses-paid trip to the 2014 tro, Calif; Joseph Gallo Farms, Atwater, For more information please visit www.prospectanalytical.com Dairy Forum to attend a presentation Calif.; and KBC Farms, Purdy, Mo. CMN

Reprinted with permission from the June 21, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com June 21, 2013 — CHEESE MARKET NEWS® 9 NEWS/BUSINESS

Average cost of production in 2012 higher than income for California dairy producers Dairy Outlook

SACRAMENTO, Calif. — California the average income over total feed cost dairy producers paid more in production was $5.45 per hundredweight of milk, costs in 2012 than what they received representing a decrease of 35.1 percent for their milk, due in part to higher compared to 2011. feed prices, according to the California Based on the CDFA cost survey, the Department of Food and Agriculture’s mailbox milk price that represents the (CDFA) recently-published 2012 Annual income producers received for milk California Cost of Production report. averaged $16.92 per hundredweight Michael Marsh, CEO of Western in 2012, a decrease of 8.5 percent United Dairymen, says this follows a compared to last year. California’s an- 5-year trend of losses for California dairy nual weighted average mailbox milk producers following rising feed costs price was $16.23 per hundredweight as well as a 2007 decision by the CDFA in 2012, down 10.5 percent from 2011. secretary that he says disconnected The lowest mailbox price of $13.97 per their prices from the marketplace. hundredweight was in May, and the “Instead of having the cheese price highest mailbox price of $19.71 per follow the market with an adequate hundredweight was in November. value for whey, it was disconnected,” California remains the No. 1 dairy Marsh says. “Unfortunately because of producing state in the nation, with that disconnect, our price in California total milk production for 2012 slightly has not been able to keep up with cost above previous year levels. The year Photo by Alyssa Sowerwine/Cheese Market News of production. Since the 2007 decision, 2012 started with record high milk CHICAGO — U.S. and global dairy industry experts came together this week for the we have only had one year when farmers production, while the last six months of 10th annual INTL FCStone Dairy Outlook Conference in Chicago. The conference, have been able to make money.” the year recorded net decreases when which was held Thursday and Friday, included a panel discussion Thursday on how In California, the total average cost compared to 2011. the removal of the quota system in Ireland will affect milk production and global for milk production was $17.57 per hun- The reduced milk production in exports. Pictured are panelists Charlie Hyland, left, commodity risk manager of dredweight in 2012, up by 11.2 percent California and slowing milk produc- FCStone Commodity Services (Europe); Vai Shah, center, risk management direc- compared to 2011, based on the CDFA tion growth nationwide contributed tor of Glanbia Foods Inc.; and moderator Chris Herlache, risk management team cost survey. Total average cost per cow to increased prices of dairy products, leader, Schreiber Foods. Conference experts also discussed the global weather was $329.07 per month in 2012, up 12.3 which increased milk prices paid to outlook, consumer trends, commodities, energy and the regulatory environment. percent from 2011. producers in the latter part of the year, Costs continued to rise in the fi rst CDFA notes. In addition to increased quarter of 2013, according to CDFA’s feed costs, California producers experi- latest data, with total production costs enced limited feed availability at times, Cornell, Wegmans forming partnership to averaging $17.69 per hundredweight, resulting from drought conditions in help boost New York’s cheese industry up 6.4 percent from the fi rst quarter the nation’s corn growing regions. For of 2012. dairy processors, both national and ITHACA, N.Y. — Wegmans Food ties for New York’s artisan cheesemakers CDFA says the increased cost in 2012 global supply and demand conditions Markets and Cornell University will and increase economic opportunity for was largely due to higher feed prices for of fi nished dairy products were steady announce a partnership that aims to dairy farmers. milk cow hay, grain commodities and with national exports remaining strong draw new investment and drive sales State agriculture officials, staff byproducts. Feed cost alone in 2012 in both volume and total value. for cheese producers in New York. from Cornell and cheese producers represented 65.3 percent of the total For more information and to read the The partnership, which will be of- will be on hand at the offi cial an- cost to produce milk. The statewide full annual report, visit www.cdfa.ca.gov/ fi cially announced during an event June nouncement and more details will average feed cost for 2012 was $11.48 dairy/dairycop_annual.html. CMN 26, is expected to open new opportuni- be made available at that time. CMN per hundredweight of milk, a 13.7 per- cent increase compared to 2011. Other cost categories, including hired labor, herd replacement, operating costs and The Standard of Excellence milk marketing costs, ranged from fl at in Cheesemaking Equipment Horizontal Cheese Vats to little change. Milk production per 10,000 - 80,000 lb. capacity cow increased by less than 1 percent in 2012 compared to a year ago. In 2012, CheeseCh VatsV featuring OptiSet Technology

Block Formers

STUDY Cottage Cheese Vatss Continued from page 1 Draining/Salting Beltslts After a thorough review of the study results including possible consequences and opportunities, the cooperatives Curd Tables agreed to continue working toward a change in the regulatory structure. Staff from the three cooperatives will Process Engineeringg begin to draft federal order language to initiate the process. CDI, DFA and LOL also will be holding a series of explanatory sessions for its mem- Innovative process solutions, engineered right. USA . The Netherlands . New Zealand bers to share the results and receive / +1 (320) 231-2210 www.relco.net input on how best to move forward on possible implementation. CMN For more information please visit www.relco.net Reprinted with permission from the June 21, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 10 CHEESE MARKET NEWS® — June 21, 2013 PEOPLE

3-A SSI announces 2013 Volunteer Service Comings and goings … comings and goings Award recipients and progress report Alfa Laval Inc., Kenosha, Wis., has The Kroger Co., Cincinnati, has announced a number staff and structural announced the retirement of Quintin McLEAN, Va. — 3-A Sanitary Stan- to 3-A SSI voluntary standards develop- changes to its USA Sanitary Segment. Frey, president, Turkey Hill Dairy. Frey dards Inc. (3-A SSI) recently an- ment and signifi cant contributions to Jim Larsen will lead the newly-formed began his career with Kroger at Turkey nounced the recipients of its 2013 the mission of 3-A SSI. business development team and will Hill Dairy in 1980 as a management Volunteer Service Awards and the • Bryan Downer, Central States In- be responsible for cultivating product trainee. He served in a variety of lead- release of the latest annual progress dustrial, Springfi eld, Mo., received the solutions. He has more than 20 years of ership roles before being promoted to report, “Moving Ahead in Our Mis- Next Generation Award for outstanding product engineering and management president in 1991. During his 22 years sion,” at the 3-A SSI Annual Meeting accomplishments by an individual who experience, most recently serving as as president, Turkey Hill tripled in size in Milwaukee. has been engaged in 3-A SSI activities business development manager, valves. and profi tability. The 3-A SSI Volunteer Service for less than fi ve years. Joe Landry will lead the newly-formed Susan Hintz, daughter of Bob and Awards recognize the dedication In addition, Lou Beaudette, chair, channel management team and will be Debbie Hintz, has been crowned North and commitment of individuals who 3-A SSI, has announced the renam- responsible for generating sales. He has Dakota’s 67th State Dairy Princess contribute to the development of vol- ing of a third 3-A SSI award to honor more than 20 years of experience work- June 10 in Bismarck, N.D. The com- untary standards and the mission of the service of Richard K. Smith, who ing with distributors, most recently serv- petition is sponsored by the Midwest 3-A SSI. Nominations for the awards passed away in late March. The 3-A ing as district sales manager. Carl Lemke Dairy Association. The runner-up was are made by fellow volunteers from the SSI Richard K. Smith Advancement will lead the newly-formed technical Moriah Karey of Manning, N.D.. She is stakeholder groups in 3-A SSI including Award will be presented in future services team and will be responsible the daughter of Tom and Marietta Karey. regulatory sanitarians, fabricators and years to recognize the outstanding for overseeing product and technical Linda Pearce has been named processors. accomplishments performed by any support. He has more than 30 years of chief fi nancial offi cer of Tillamook Winners of the 3-A SSI Volunteer individual or group on behalf of 3-A heat transfer and process design experi- County Creamery Association (TCCA), Service Awards for 2013 include: SSI. ence, most recently serving as business Boardman, Ore. Don Desjarlais, • Gabe Miller, Sani-Matic Inc., The 3-A SSI progress report development manager. TCCA’s former chief fi nancial offi cer, Madison, Wis., received the Leadership “Moving Ahead in Our Mission” Maxx Sherman has joined Bravo will remain with the cooperative in the Service Award for outstanding service is available at www.3-a.org. CMN Farms, Fowler, Calif., as national sales newly-created role of vice president and marketing manager. He was previ- of fi nance and corporate controller. ously director of national sales at Marin Previously, Pearce worked as chief Chobani’s Hamdi Ulukaya named Ernst French Cheese Co., Petaluma, Calif. fi nancial offi cer for Nautilus Inc. CMN & Young World Entrepreneur of the Year

NEW BERLIN, N.Y. — Hamdi Ulu- consumers as we expand into new kaya, founder and CEO of Chobani, markets.” was named the Ernst & Young World After leaving his family’s dairy Entrepreneur of the Year 2013 Award business in Turkey to learn English in winner at a ceremony held June 8. the United States, Ulukaya recognized Ulukaya was recognized for regen- an opportunity in the untapped Greek erating a “long-stagnant” yogurt yogurt market. Chobani was founded in category, bringing wholesome food 2005, and it took two years to perfect the to the masses, achieving fi nancial recipe before the fi rst order shipped in Celebrating Over 79 Years success and building a world-class 2007. Chobani’s annual sales rose to $1 of Service to the Industry... brand. billion in 2012. “I am deeply honored to receive To meet growing sales demands in this award from Ernst & Young and in the United States, Chobani updated the company of such amazing fellow and expanded an almost 100-year-old business leaders from around the plant in New York, which uses nearly world,” Ulukaya says. “What began 4 million pounds of milk each day to as just my personal commitment to produce 2 million cases of Chobani make delicious and nutritious Greek Greek Yogurt products a week. In yogurt accessible to everyone has December 2012, Chobani opened turned into a 3,000-person-strong the doors of its second U.S. plant company serving three markets to expand capacity and support OFFERING INCLUDING A COMPLETE around the world. I look forward to new product innovations. Built in s 0UMPS#IRCULATION LINE OF SUPPLIES & PARTS: our next 3,000 employees and sharing Twin Falls, Idaho, it is the largest 3YSTEMS s #HEMICALS our food philosophy with even more yogurt plant in the world. CMN s #)0#LEANING3YSTEMS s #LOTHING3AFETY)TEMS s -ETERING "ATCHING s 4ESTWARE3CIENTIlC)TEMS "LENDING3YSTEMS s 0APER'OODS s )NSTRUMENTATION s &ILTERING-EDIUM Steve Dragoo of Solutions Consulting Inc. s #HEMICAL4ANKS -ATERIALS s 0RODUCTION3YSTEMS s "RUSHES"ROOMS receives 2013 IDDBA President’s Award %QUIPMENT s 3ANITARY&ITTINGS 6ALVES s 6ALVES &ITTINGS 4UBING %TC ORLANDO, Fla. — Steve Dragoo, them tell their stories and formulate !IR!CTUATED#ONTROLS %TC s 0ROCESSING0LANT3UPPLIES president, Solutions Consulting Inc., strategies during challenging economic s 0UMPS 0UMPING The Name You Can Trust %QUIPMENT 0ARTS received the 2013 International Dairy- times. And Rely On For Your 3UPPLIES3ERVICE Deli-Bakery Association’s (IDDBA) “The IDDBA President’s Award is Capital Equipment And s 2EPAIR0ARTSFOR President’s Award at the awards ban- given to an individual who has made an Systems Investments 'AUGES )NSTRUMENTATION 'ASKETS 6ALVES quet that concluded Dairy-Deli-Bake extraordinary commitment to serving 2013. a cause, an organization, an industry, Dragoo is the founder and president or a country,” says Voni Woods, chair- of Solutions Consulting Inc. During man, IDDBA. “In recognition of his his 30-plus-year career, Dragoo has passion and enthusiasm for excellence, worked for major retailers and for two of and on behalf of the International America’s largest food companies. With Dairy-Deli-Bakery Association and R. D. SMITH CO., INC. Solutions Consulting, he has acted as our grateful industry, we are delighted "AUER3TREET\%AU#LAIRE 7)\     \&AX  \7EBSITEWWWRDSMITHCOCOM an advisor and trainer for supermarket to present the 2013 IDDBA Presi- chains and food manufacturers, helping dent’s Award to Steve Dragoo.” CMN For more information please visit www.rdsmithco.com

Reprinted with permission from the June 21, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com June 21, 2013 — CHEESE MARKET NEWS® 11 NEWS/BUSINESS

HP Hood to invest $84.6 million to increase ultra-high temperature production in Virginia RICHMOND, Va. — HP Hood has type in the United States. Virginia Opportunity Fund to assist with the “As one of Frederick County’s revealed plans to invest $84.6 million is honored by this partnership with project. McDonnell also approved a largest manufacturing employers, HP in its plant in Frederick County, Va., Hood, and lauds the continued growth $1 million performance-based grant Hood is a tremendous asset to the Com- to increase ultra-high temperature of the burgeoning food and beverage from the Virginia Investment Part- monwealth,” says Virginia Secretary of (UHT) production capacity. industry in the Commonwealth.” nership program. Commerce and Trade Jim Cheng. “An The expansion will create 75 new The Virginia Economic Devel- Through its Virginia Jobs Invest- investment of this magnitude is a huge jobs a the plant, which HP Hood opment Partnership worked with ment Program, the Virginia Depart- win, and emphasizes Hood’s confi dence established in 2001. Frederick County and the Win- ment of Business Assistance also in the business climate and infrastruc- “The company has invested and chester-Frederick County Economic will provide funding and services to ture available in Frederick County. grown jobs over the past 13 years, and Development Commission to secure support the company’s recruitment, We look forward to the company’s this major investment will expand a $500,000 grant from the state’s training and retraining activities. continued success in Virginia.” CMN production capacity and, with the addition of 75 new jobs, bring total employment at the facility to 500,” FDA releases third annual Reportable Food Registry assessment says Virginia Gov. Bob McDonnell. WASHINGTON — FDA has released and feed adulteration and targeting 11 of these, Salmonella for two and “This expansion further secures its third annual report of its Re- inspection resources. undeclared allergens for seven. the Frederick County operation’s portable Food Registry. The report There were 1,095 registry entries, The number of primary reports standing as the largest plant of its measures FDA’s success in receiving representing primary, subsequent and for Salmonella decreased to 63 in early warning on problems with food amended reports, during the year cov- Year 3 from 86 in both Years 1 and Advantage Sales & and feed. ered in the report (Year 3). Of these, 2. Data from the third year of RFR “The Reportable Food Registry 224 were primary reports, 609 were operation indicates that Produce- Marketing acquires (RFR) has already proven itself an subsequent reports as a result of pri- RAC accounted for the majority of Pryority Food invaluable tool to help prevent con- mary reports, and 262 were amended Salmonella-related reports at 35 taminated food from reaching the reports, updating previously submitted percent or 22 primary RFR entries. Marketing Inc. public,” says Deputy Commissioner primary or subsequent reports. The 48 primary reports in Year 3 for Foods and Veterinary Medicine Events resulting in the greatest for Listeria monocytogenes show a IRVINE, Calif. — Advantage Sales & Michael R. Taylor in the report. “By number of reports submitted during 45-percent increase over the 33 pri- Marketing LLC (ASM), Irvine, Calif., providing early warning about poten- Year 3 were: Listeria monocytogenes mary reports in Year 1. Fresh cut pro- recently announced the acquisition tial public-health risks from report- in widely distributed fresh cut onions, duce accounted for about a third of the of Pryority Food Marketing Inc., a able foods, the registry increases resulting in 136 subsequent entries; Listeria monocytogenes reports with food brokerage company focused on the speed with which the FDA, its Salmonella Braenderup in imported 15 primary entries, mainly for bagged meat, deli, specialty cheese, seafood, state- and local-level partners, and mangoes, resulting in 104 subsequent leafy greens and salad products. Dairy frozen and dairy clients and custom- industry can remove hazards from entries; and undeclared milk in a na- was responsible for 11 entries, with ers. Terms of the transaction were the marketplace.” tionally distributed snack bar, resulting various cheese products accounting not disclosed. This third Reportable Food Registry in 43 subsequent entries. for 10 of these entries. Pryority Food Marketing is based Annual Report covers the period of Among the 224 primary RFR entries Primary RFR entries for foods from in North Billerica, Mass., and also Sept. 8, 2011, to Sept. 7, 2012. FDA in Year 3, 20 (9 percent) were dairy international sources decreased to 46 has offices in Scarborough, Maine; defi nes a reportable food as an article commodities, compared to 16 dairy in Year 3 from 56 in Year 2. The most Manchester, Conn.; and Glen Allen, of food/feed for which there is a reason- entries in Year 2 and 18 in Year 1. Dairy (11) were in seafood, while two — one Va. The company’s specialties include able probability that the use of, or expo- was the third-most frequent commod- for Listeria monocytogenes and the specialty cheese, deli, fresh/frozen sure to, such article of food will cause ity among primary reports, behind other for Salmonella — were dairy and value-added meats, all natural serious adverse health consequences fresh-cut produce at 23 entries or 10 products. and snacks. or death to humans or animals. The percent, and produce-raw agricultural For the full report and previ- “Pryority has built an outstanding congressional intent for the registry commodities (RAC) at 33 entries or 15 ous reports, visit http://www.fda. reputation as a key provider of retail is to help FDA better protect public percent. Among the 20 dairy entries, gov/Food/ComplianceEnforcement/ sales services to clients and custom- health by tracking patterns of food Listeria monocytogenes accounted for RFR/ucm200958.htm. CMN ers in the perishables industry,” says Tanya Domier, CEO, ASM. “The Pryor- ity team brings decades of experience and relationships to ASM thereby enhancing our perishables business and further cementing our position as a leader within this channel.” Al Albano and Mike Sonberg, who previously served as CEO and presi- dent, respectively, at Pryority Food Marketing, will lead the new ASM business unit. “We are delighted to become a part of the ASM family,” Albano says. “By joining North America’s lead- ing sales and marketing agency, we have the opportunity to continue to provide our clients and customers with best-in-class sales services in the perishables industry and to now do so with more dedicated resources and a scalable infrastructure. To- gether, we are uniquely positioned to provide complete service and coverage in the meat, deli, specialty cheese, seafood, frozen and dairy arenas throughout the Northeast and Mid-Atlantic markets.” CMN For more information please visit www.cheesemarketnews.com/order.html

Reprinted with permission from the June 21, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 12 CHEESE MARKET NEWS® — June 21, 2013 NEWS/BUSINESS

Saputo announces fi nancial results for fi scal year 2013; net earnings rise 26.5 percent MONTREAL — Saputo recently earnings were $2.58 per share, up 2.8 million compared to the same quarter Products Sector decreased by ap- reported its fi nancial results for its percent from last fi scal year. last fi scal year. The inclusion of the proximately $1 million compared to fourth quarter and fi scal year 2013, Revenues for Saputo’s Dairy Prod- Morningstar acquisition offset a less the same quarter last fi scal year which ended March 31, 2013. ucts segment in fi scal 2013 totaled favorable dairy ingredients product Saputo’s fourth quarter net earn- Revenues for fi scal 2013 totaled C$4.09 billion, up 0.9 percent from mix and lower sales volumes. In the ings amounted to C$100.5 million, C$7.30 billion, up 5.3 percent from the previous year. Revenues for USA CEA Dairy Products Sector, revenues and adjusted net earnings amounted fi scal 2012. Earnings before interest, Dairy Products totaled C$137.1 mil- decreased by approximately C$22 mil- to C$129.2 million, both up from the income taxes, depreciation, amortiza- lion, up 2.3 percent, and revenues for lion in the fourth quarter compared to same quarter last fi scal year. tion, acquisition, restructuring and CEA (Canada, Europe and Argentina) last fi scal year. In fi scal 2014, Saputo says it will impairment costs (EBITDA) were Dairy Products totaled C$3.07 billion, Saputo’s consolidated EBITDA continue to benefi t from Morningstar’s C$860.8 million in fi scal 2013, up 3.6 up 11.9 percent from fi scal 2012. totaled C$229.7 million for its fourth national manufacturing and distribu- percent from the previous year. Net Consolidated revenues for the quar- quarter, up 14.3 percent compared tion footprint. Additionally, the USA earnings were C$481.9 million, up 26.5 ter ended March 31, 2013, amounted to the same quarter last fi scal year. Dairy Products Sector will continue percent from fi scal 2012. to C$2.05 billion, up 20.5 percent EBITDA for the USA Dairy Products to evaluate opportunities from the Basic net earnings for fi scal 2013 from the same quarter last fi scal year. Sector increased by approximately acquisition of DCI Cheese Co. Inc., were C$2.44 per share, up 29.1 percent USA Dairy Products Sector revenues C$29 million in the fourth quarter, enabling it to further penetrate the from 2012, while adjusted basic net increased by approximately C$371 while EBITDA for the CEA Dairy specialty cheese category and improve and expand its product offerings. The U.S. retail segment will be introducing Treasure Cave Blue cheese fl avored line extensions, a premium line of snack cheeses and a Frigo Cheese Heads Beef and Stick/String product offering. WWorldorld DairyDairy ExpoExpo The Dairy Products Division (Canada) will target volume growth in the cheese and dairy ingredients categories, as well as seek volume increases despite declining market CCHAMPIONSHIPHAMPIONSHIP trends in the fl uid milk category. The division will continue to focus efforts on value-added milk category oppor- DDairyairy ProductProduct ContestContest tunities and pursue investments in product categories such as specialty cheeses, with the intention to maxi- mize exposure across Canada with Enter the only coast-to-coast distribution. North American Manufacturers, suppliers, Saputo initiated a project to con- judging contest converters and marketers solidate the distribution activities of to include all the Greater Montreal area into one of all dairy products are distribution center in Saint-Laurent, dairy products encouraged to enter this Quebec, as part of its continued analysis of activities. This project is unique, one-of-a-kind contest. on schedule to be completed in March 2014. In fi scal 2014, the company also will proceed with the closure of the Winkler, Manitoba facility and has Contest Dates announced the closure of its Warwick, July 22, 2013 Contest entry forms due Quebec, manufacturing facility sched- August 5-8 Contest entries shipped uled for June 2014. August 13-15 Contest judging days The Dairy Products Division (Ar- gentina) anticipates that demand for Contest Auction dairy products in the export market Tuesday October 1, 2013 will continue to grow, and a three-year World Dairy Expo, Madison, WI project began in early fi scal 2013 to gradually increase manufacturing ca- For more information on how to enter this contest, pacity and face further market growth. visit www.wdpa.net or call 608-836-3336. The Dairy Products Division (Europe) will cease operations in the fi rst quarter of fi scal 2014, as announced in late fi scal 2013. As of fi scal 2014, Saputo has realigned its reporting structure under three new Turn your contest success sections. The Canadian Sector will into tremendous marketing include the Dairy Division (Canada) and the Bakery Division. The USA and sales opportunities. Sector will combine the Cheese Division (USA) and the Dairy Foods Division (USA). Finally, the Interna- tional Sector will combine the Dairy Sponsored by the Wisconsin Dairy Products Association Division (Argentina) and the Dairy Ingredients Division, which will in- clude national and export ingredients sales as well as cheese exports from For more information please visit www.wdpa.net the North American divisions. CMN

® ReprintedWiscCon twithest-full.i npermissiondd 1 from the June 21, 2013, edition of CHEESE MARKET NEWS © Copyright 2013 Quarne Publishing3/26/1 3LLC; 10:50 PH:AM (509) 962-4026; www.cheesemarketnews.com June 21, 2013 — CHEESE MARKET NEWS® 13 CLASSIFIED ADVERTISING MAJOR 3-DAY AUCTION!

Nutritional Products Processing/Packaging AUGUST 13, 14 & 15 - St. Louis Park, MN

(4) FMC Retorts - (32) S/S Silos, Tanks - Aseptic Processing - (12) Filling Lines - Blending & Mixing • (4) FMC Retorts - Installed 2007! with Rotational Based Agitation, Automatic Loading & Unloading, (8) ALLPAX Imersion Retort Systems • (32) S/S Silos, Tanks, Processors New as 2009 DCI, Walker, Feldmeier, including Aseptic Tanks • (2) APV/Cherry Burrell Aseptic Processing Lines • (7) Gaulin Homogenizers - Plate Heat Exchangers • (5) Skid-Mounted CIP Systems • R/O System • (12) Filling Lines: NEW Sidel Filler; (4) Tetra Pak Brik Aseptic Fillers; (3) Bartelt Pouch Fillers; Can Filling Line; Form, Fill & Seal System; Bottle Filling & Capping Line, Packaging/Carton Equip. • VERY LARGE Selection S/S Pipe, Pumps, Valves • EXTENSIVE Material Handling & General Plant: (20) Forklifts, 100’s Pallet Rack Sections; MORE!

www.harrydavis.com Can & PET Beverage Packaging HARRY 412-765-1170 former Kroger Beverage Facility [email protected] DAVIS AUCTION: July 24 - Bluefield, VA & COMPANY Asset Solutions Experts Can & PET Fillers - Packaging - Refrigeration Since 1955

For more information please visit www.harrydavis.com Reprinted with permission from the June 21, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 14 CHEESE MARKET NEWS® — June 21, 2013 CLASSIFIED ADVERTISING

• HELP WANTED 7 • HELP WANTED 7 • HELP WANTED 7 • HELP WANTED 7

DSM – Bright Science. Brighter Living. DSM is a global science-based company active in health, nutrition and materials. By connecting Account Manager - Hygiene Solutions our unique competencies in Life Sciences and Materials Sciences we are driving economic Appleton/Sheboygan prosperity, environmental progress and social advances to create sustainable value for all stake- holders. We deliver innovative solutions that nourish, protect and improve performance in global What you will love about working for Sealed Air: markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical ‡:RUOGFODVVJOREDOSURJUHVVLYHRUJDQL]DWLRQ devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio- ‡4XDOLW\DQGVHUYLFHDUHFRUHWRRXUYDOXHSURSRVLWLRQ based materials. DSM has annual net sales of around € 9 billion. Our company is headquartered in the Netherlands, and we employ approximately 23,500 people across the globe. To learn more ‡3RLVHGIRUJURZWK about DSM, please visit our website at www.dsm.com. ‡)RUWXQHFRPSDQ\ ‡5HFHVVLRQUHVLVWDQWPDUNHWV DSM Food Specialties develops, produces and sells ingredients and processing aids for the Dairy, ‡(WKLFDOFRXUDJHRXVFROODERUDWLYHDQGH[WUHPHO\LQQRYDWLYH Baking, Beverage, Cultures, Test & Preservation, Savoury and Nutritional Markets. DSM Food  Specialties is a highly international operating organization. The Business Group consists of the What you will love about this opportunity: Business Units Enzyme Solutions, Cultures, Food & Crop protection, Savoury Ingredients and Hydrocolloids, a Research and Development organization plus a number of staff departments ‡2ZQDQGPDQDJH\RXURZQSURMHFWV±KXJHLPSDFWDQGYLVLELOLW\ and excellence centers. ‡2UJDQL]DWLRQUHVSHFWVYDOXHVDQGZRUNVLQV\QHUJ\ZLWK7DOHQW$FTXLVLWLRQ ‡5HODWLYHO\QHZ7DOHQW$FTXLVLWLRQWHDPZLWKPDQ\DUHDVWRLPSURYH The Business Unit Cultures is a major player in the market for cultures and dairy enzymes. The Business Unit has an ambitious growth strategy for the coming years. Future growth is driven by ‡0DQDJHPHQWUHFHSWLYHWRQHZLGHDVFKDQJH the unique value we bring to the market in the form of innovative products and industry-leading ‡&KDOOHQJLQJHYHUFKDQJLQJHQYLURQPHQW±QRERULQJGD\V technical expertise. 7KHDFFRXQWPDQDJHUZLOOQHHGWRKDYHVHOOLQJVNLOOVDQGDFFRXQWPDQDJH Technical Sales Manager - Cheese PHQWNQRZOHGJHWRPDLQWDLQEXVLQHVVLQDOO+\JLHQH6ROXWLRQVLH'DLU\ )RRG3URFHVVLQJ%UHZHU\:DWHU7UHDWPHQW%HYHUDJHDQG*HQHUDO)HHGHU We are looking for an ambitious, talented Technical Sales Manager to serve customers in the (TXLSPHQWIRU+67KLVSRVLWLRQZLOODOVRUHTXLUHNQRZOHGJHRIJRYHUQPHQW cheese market. The ideal candidate has a passion for cheese and 7 to 10 years of dairy industry experience in a business to business commercial environment. The Technical Sales Manager UHJXODWLRQIRUXVHRIFOHDQLQJFKHPLFDOV (TSM) supports the introduction of new products to existing customers/application areas. The TSM leads and/or supports the technical sales process and provides technical (after sales) support to RESPONSIBILITIES: customers related to the applications where DFS products are used. This supports achievement ‡6HUYLFLQJDFFRXQWVSODQWFKHPLFDOPDQDJHPHQWVDQLWDWLRQSURJUDP of sales targets, realization of account plans and regional sales plans. UHYLHZWUDLQLQJRQVDIHW\FKHPLFDOXVHFRQFHQWUDWLRQVWURXEOHVKRRWLQJ 4XDOL¿FDWLRQV$%DFKHORU¶VGHJUHHLQ)RRG6FLHQFHRUUHODWHG¿HOGLVUHTXLUHG.QRZOHGJHRI RQFOHDQLQJLVVXHVSODQWYDOXHVDYLQJVLHZDWHUHQHUJ\ SURGXFWLRQWLPH cheese industry and cheese markets. You must have excellent communication, planning and ‡6HOOLQJQHZDFFRXQWVSUHVHQWDWLRQVVXUYH\¶VDQGYDOXHDGGHGGDWD organizational skills and be able to build and maintain relations on different levels both internally ‡$FFRXQWSUR¿WDELOLW\UHYLHZUHYLHZRISURGXFWVVROGWRDFFRXQWVRQDQ and externally. You possess qualities like ambition, initiative, discipline, drive for results and RQJRLQJEDVLV customer focus. ‡7LPH0DQDJHPHQWIRUPRQWKO\VHUYLFHDQGUHSRUWLQJSUHVHQWDWLRQVNLOOV Please apply online with resume and ‡2I¿FHVXSSRUWLHHPDLODQGSKRQHFRPPXQLFDWLRQVUHSRUWZULWLQJ salary requirements to: www.dsm.com/careers DQGFRQWLQXLQJDFFRXQWPDQDJHUHGXFDWLRQ to: Job ID NUTR00318. QUALIFICATIONS: :HRIIHUDFRPSHWLWLYHVDODU\DQGFRPSUHKHQVLYHEHQH¿WV ‡\HDUGHJUHH+6GLSORPDPLQLPXP — DSM Food Specialties (DFS): An Equal Opportunity Employer — ‡\HDUVRIZRUNH[SHULHQFHLQIRRGSURFHVVLQJTXDOLW\DVVXUDQFHVDOHVRU IRRGSURFHVVLQJSODQWPDQDJHPHQWUROHSURGXFWLRQRUTXDOLW\DVVXUDQFHUROHV For more information please visit www.dsm.com/careers  4XDOLÀHGDSSOLFDQWVVKRXOGDSSO\DWZZZVHDOHGDLUFRP Quality Manager/Kalona, IA Proliant Dairy Ingredients, a world leader in protein manufacturing is looking for a Quality Manager for our Kalona, Iowa facility. Sealed Air Corporation is an Equal Opportunity Employer M/F/D/V The successful candidate will supervise the Quality Control functions and will that values a diverse workplace provide information to customers and departments as required. Work with Corporate Quality Assurance to ensure all raw materials and finished products conform to company and customer specifications. For more information please visit www.sealedair.com The candidate must have a bachelor’s degree in Dairy science, Food science, or other related field with 2-3 years related work experience in a food processing MARKETING 10 MARKETING 10 environment. High School Diploma or GED, and/or an AS degree in a science • • field with 3-6 years may provide an equivalent combination of education and experience. SQF certification preferred. Proliant Inc. offers an extensive benefits package. Successful completion of a • MISCELLANEOUS 11 • MISCELLANEOUS 11 pre-employment physical and drug test required. Interested applicants should send a resume to: Proliant Dairy Ingredients • CHEESE/DAIRY 12 • CHEESE/DAIRY 12 2206 540th Street SW Kalona, Iowa 52247 [email protected] FOR SALE: www.proliantinc.com 5 YEAR OLD — EOE — WHITE CHEDDAR

For more information please visit www.proliantinc.com • Produced by Master Cheese Maker • Sufficient Quantities • POSITIONS WANTED 8 • CONSULTANTS 9 Available • Call For Pricing

(800) 200-6020 www.cedargrovecheese.com

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Reprinted with permission from the June 21, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com June 21, 2013 — CHEESE MARKET NEWS® 15 NEWS/BUSINESS

ski, senior vice president of legislative “We always knew we faced a dif- culture Committee’s dairy proposal, HOUSE affairs and economic policy, IDFA. “The fi cult challenge in the more urban and which included margin insurance plus Continued from page 1 report also contradicts a previous study suburban-oriented House, especially market stabilization, is a fi scally reck- from the University of Missouri, which with House Speaker John Boehner per- less vote, with negative implications is now strongly against supply manage- claimed the opposite.” sonally committed to defeating the for the dairy producer sector, but also ment for our dairy industry.” According to the Cornell report, “the Dairy Security Act,” Kozak adds. “But for the entire farm bill. By eliminating In the face of the House farm bill government loss ratio is signifi cantly the market stabilization component, the vote failure to pass, dairy industry higher for the (DSA) proposal than Goodlatte-Scott amendment removed stakeholders this week ramped up ef- the Goodlatte-Scott proposal.” The ex- the cost control mechanism from this forts to make their positions on dairy pected loss ratio is the ratio of expected measure, greatly increasing government policy reform known. payments divided by premiums, and “We always knew we and taxpayer cost exposure.” In addition to IDFA, other dairy thus it represents the multiple losses faced a diffi cult Kozak notes the DSA already was industry stakeholders that have voiced the government expects to pay relative approved twice by the House Agriculture support for the Goodlatte-Scott amend- to premiums paid by producers. challenge ... But Committee, and is included in the Sen- ment include the Wisconsin Dairy Busi- The study also refutes the argument we’re hopeful that ate farm bill, with the costs shared by ness Association and Teamsters union, that the DSA will help small farms, farmers and mitigated by the program’s among others. IDFA notes. the House and Senate market stabilization element. “The Teamsters are not philosophi- However, other dairy industry will eventually fi nd “By eliminating the market stabili- cally opposed to supply management,” groups, such as the National Milk Pro- zation component, the Goodlatte-Scott the union says. “We support our broth- ducers Federation (NMPF), National a way to write a approach removes the cost control ers and sisters in Teamsters Canada, Farmers Union, and Dairy Farmers of compromise farm bill.” mechanism from this measure, greatly for example, and their defense of America, have voiced support for the increasing government and taxpayer Canadian dairy market protections in DMSP, and NMPF this week voiced Jerry Kozak costs,” Kozak says. trade negotiations like the Trans-Pacifi c concerns over removing the supply NATIONAL MILK He says the DSA is more in tune with Partnership. But after careful consid- management provision from farm bill where Congress wants to go with farm PRODUCERS FEDERATION eration and discussions with producers legislation. policy, in terms of limiting taxpayer and processors, we conclude that the “The decision to adopt the Good- costs and minimizing any impact on Dairy Security Act doesn’t work for our latte-Scott amendment as part of the consumers. members.” House’s farm bill is a disappointment to “In fact, it is dairy farmers who are IDFA this week notes that a new America’s dairy farmers who recognize we’re hopeful that the House and Sen- urging Congress to eliminate three study from Cornell University shows that this amendment for what it is: an effort ate will eventually fi nd a way to write a existing farm programs,” Kozak says. the proposed farm bill dairy program, as to ensure that dairy processors get a compromise farm bill. When they do, we “It’s dairy farmers who have expressed passed by the Senate, would cost more government-insured supply of cheap believe the agriculture conferees who genuine interest in limiting the costs than the Goodlatte-Scott amendment. milk,” says Jerry Kozak, president and develop that fi nal bill will understand of farm programs, unlike processors, The study, “2013 Farm Bill Dairy Title CEO, NMPF. “But the House vote against the importance of the more balanced who have no real stake in limiting Proposal Redistributes Program Ben- fi nal passage of the farm bill makes the approach to dairy policy contained in government costs and stand to benefi t efi ts Toward States With Larger Farms,” Goodlatte-Scott vote a hollow victory for the Senate-passed farm bill. by creating a surplus of milk that puts also fi nds that the currently proposed its proponents. “The House rejection of its Agri- farm families out of business.” CMN DSA is signifi cantly weighted to benefi t large farms. “As did CBO, the Cornell report fi nds that the DSA will cost taxpayers more than the alternative,” says Jerry Slomin-

MAY Continued from page 1

For the entire United States, May milk production is estimated at 17.74 billion pounds, an increase of 0.8 per- cent vs. May 2012. April revised production in the 23 major states, at 16.06 billion pounds, was up 0.2 percent from April 2012. The April revision represents a decrease of 20 million pounds or 0.1 percent from last month’s preliminary production estimate. Total U.S. milk production in April is estimated at 17.25 billion pounds, up 0.1 percent from April 2012. California led the nation’s milk pro- duction with 3.73 billion pounds in May, down 0.5 percent from its production a year earlier. Wisconsin followed with 2.37 billion pounds, up 1.2 percent from its production in May 2012. Due to sequestration, adminis- trative data is being used by NASS for this report through the end of September 2013. The report does not currently contain information on cow numbers or milk per cow. CMN

Reprinted with permission from the June 21, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 16 CHEESE MARKET NEWS® — June 21, 2013 NEWS/BUSINESS

Cheese included on Canada’s list for possible retaliatory tariffs TRADE OTTAWA — Earlier this month, 23 of this year to bring the COOL regu- modities on a list of items that may Continued from page 1 Canada’s government released a list of lations into compliance. be targeted is “cheese, not includ- several U.S. commodities exported to “We are preparing to launch the ing the following: fresh (unripened • Promote the global competi- Canada, including cheese, that could next phase of the WTO dispute settle- or uncured) cheese, whey cheese or tiveness of small- and medium-sized be targeted with retaliatory tariffs in ment process on the new U.S. rule, curd, grated or powdered, processed enterprises. relation to an ongoing country of origin which we had hoped to avoid by the cheese, blue-veined cheese or cheese In late May, Clay Hough, senior group labeling (COOL) dispute. United States living up to its trade containing veins produced by Penicil- vice president of the International Dairy The World Trade Organization obligations,” Canada’s Minister of In- lium roqueforti.” Foods Association (IDFA), testifi ed at (WTO) last summer ruled that COOL ternational Trade Ed Fast and Minis- Fast and Ritz says the Canadian a joint hearing held by the USTR offi ce violates the United States’ WTO obli- ter of Agriculture and Agri-Food Gerry government will continue to consult and the Interagency Trade Policy Staff gations because of a requirement that Ritz said in a statement issued June 7. with stakeholders as it pursues a fair Committee in support of the proposed meat produced in the United States “When the United States failed to com- resolution of this issue through WTO U.S.-EU trade agreement. from imported livestock be labeled ply by the May 23 deadline, we said we over the next 18-24 months. “With global exports of $5.2 bil- differently from meat produced from would pursue all options available.” “To respect Canada’s WTO ob- lion last year, the U.S. is a major dairy U.S.-born livestock, which causes seg- Ministers Fast and Ritz previously ligations, our government will not exporter, yet we face a dairy trade regation and adds disproportionate indicated that Canada could seek re- act on these retaliatory measures defi cit with the EU that exceeds $1 handling costs to imported livestock. taliation in the range of C$1.1 billion. until the WTO authorizes us to do billion,” Hough said in his testimony. WTO gave the United States until May Among the dozens of U.S. com- so,” they say. CMN “In 2012, the EU exported $1.3 billion in dairy products to the U.S. while U.S. companies exported only $88 million in dairy products to the EU. A successful TTIP agreement must remove the many tariff and non-tariff obstacles to trade that currently hinder greater U.S. dairy exports to the EU, especially geographi- cal indications (GIs).” The U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) also testifi ed at the USTR-led hearing and have had numer- ous discussions with the U.S. negotiating team in preparation for the launch of negotiations with the EU. “NMPF and USDEC support the TTIP negotiations and are pleased that talks will launch next month,” says Jaime Castaneda, senior vice president of strategic initiatives and trade policy, USDEC and NMPF. “It is our expecta- tion that a comprehensive trade agree- ment will remove the many tariff and nontariff barriers that hinder U.S. dairy market access. That includes the EU’s restrictions on the use of many common cheese names.” Bob Stallman, president of the American Farm Bureau Federation, says the beginning of comprehensive trade negotiations between the United States and EU holds the promise of ex- panded market access and an improved, science-based regulatory approach for agriculture and food. “The misuse of sanitary and phyto- sanitary standards, including the EU’s restrictions on genetically engineered GEA Nu-Con Cleanable Powder Handling Systems crops, has long been a tactic to impede trade,” Stallman says. “We will look Powder handling equipment can be CIP-ed effectively when the correct closely to these negotiations to move equipment and designs have been implemented. A system that is CIP- past this trade distorting tactic and fully able includes a CIP kitchen with water and cleaning solution tanks, embrace a rules-based trading system pumps, heaters; dead-leg free valves, vessels, and hard pipes; and with standards based upon scientifi c integrated process automation. assessment.” He adds farmers and ranchers have been frustrated over the seemingly end- less array of non-tariff barriers Europe GEA Process Engineering Inc. Skid Mounted Three-Tank CIP System applies to many agricultural commodi- 1600 O‘Keefe Road, Hudson WI, 54016 ties and products. Phone: 1 715 386 9371, Fax: 1 715 386 9376 “We expect the TTIP to be a high- [email protected], www.gea.com standard, comprehensive agreement that covers all signifi cant barriers to engineering for a better world GEA Process Engineering U.S. and EU agricultural trade,” he says. “We are cautiously hopeful that these negotiations will yield positive For more information please visit www.gea.com results for U.S. agriculture.” CMN

Reprinted with permission from the June 21, 2013, edition of CHEESE MARKET NEWS® © Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com