$21.50 d's Dairy Class III Prices orl In W du $20.50 Since 2005 e st h r t y $19.50 February in Red g W n i e $18.50 e v Since 1876 k r e l y S $17.50 $16.50 $15.50 $14.50 $13.50 CHEESE REPORTER $12.50 $11.50 Vol. 132, No. 35 • Friday, February 29, 2008 • Madison, Wisconsin $10.50 2005 2006 2007 2008 Alto Dairy Co-op Members USDA Proposes Class I Price Hike In Approve Sale Of Assets To Saputo Cheese USA Fond du Lac, WI—Alto Dairy Three Southeastern Federal Orders Cooperative announced Wednesday Citing Emergency Marketing Southeast orders: 25 percent of Appalachian order, approximately that its members have approved the Conditions, USDA Skips deliveries to pool plants during the $17.5 million for the Southeast sale of the co-op’s assets to Saputo order and approximately $38 million Recommended Decision months of January, February, July, Cheese USA Inc. for total consider- August, September, October and for the Florida order. ation of $160 million. Washington—The US Department November, and 35 percent for the In estimating the impact on min- The sale, which was unanimously of Agriculture (USDA) today pub- other five months. imum producer prices, blend prices approved by Alto’s board of directors lished a tentative final decision that •Reduce touch-base standards to will increase by about 26 cents per in January, was voted on and increases Class I prices in the one day each month for the hundredweight for the Appalachian approved by 98 percent of the co- Appalachian, Southeast and Florida Appalachian and Southeast orders. order, approximately 64 cents per op’s members who attended a special federal milk marketing orders. •Add January and February as hundred for the Southeast order, and member meeting held in Fond du The decision, which requires pro- months when transportation credits $1.19 per hundred for the Florida Lac on Wednesday. ducer approval before being imple- are paid for the Appalachian and order. A large number of Alto Dairy mented, also proposes to amend Southeast orders. The proposed changes are based members from across Wisconsin and certain features of the diversion •Provide for the payment of on the record of a public hearing Michigan’s Upper Peninsula limit, touch-base standards and transportation credits in the held last May in Tampa, FL. That attended the meeting to vote on the transportation credit provisions for Appalachian and Southeast orders hearing had been called in response proposed asset sale. the Appalachian and Southeast for full loads of supplemental milk. to a petition from Dairy Cooperative Rich Scheuerman, Alto Dairy’s orders. •Provide more flexibility in the Marketing Association (DCMA), president and chief executive officer, USDA also determined that qualification requirements for sup- which consists of nine dairy cooper- called it a “historic day” for Alto. emergency marketing conditions plemental milk producers to receive atives that market and pool their Approval of the sale by Alto’s mem- exist that warrant omitting the transportation credits for the milk in one or more of the three bers “will strengthen the business by issuance of a recommended decision. Appalachian and Southeast orders. orders. improving the long-term viability of The tentative decision specifically •Increase the monthly transporta- At last May’s hearing, a witness our manufacturing facilities, provid- proposes to immediately adopt tion credit assessment from 20 to 30 appearing on DCMA’s behalf testi- ing job stability and a long-term pur- amendments that: cents per hundredweight in the fied in support of temporarily chaser of milk for dairy producers in •Adjust the Class I pricing surface Southeast order. increasing minimum Clas sI prices Wisconsin.” in each county within the geograph- According to USDA, the Class I in the three orders. The witness tes- The 114-year-old dairy coopera- ical marketing areas of the price increases adopted in this deci- tified that all elements of the pro- tive makes American- and Italian- Appalachian, Florida and Southeast sion would generate higher mar- posals for the three orders are offered style cheeses at its plants in Waupun orders. ketwide pool values in all three as a “single package” to address the and Black Creek, WI. Cheese and •Make diversion limit standards southeastern orders by approximately whey produced by the co-op are mar- identical for the Appalachian and $18 to $19 million for the • See Class I Prices Hiked, p. 26 keted nationwide under a variety of brand names and private labels. Use Of Name ‘Parmesan’ With Double The Protein, Greek-Style Yogurt “Alto Dairy has always been rec- Hasn’t Become Generic, ognized as an industry leader and Infringes On PDO Touted As ‘Next Big Thing’ For US Market today is no different,” said Howard Protection For Parmigiano FAGE USA Begins Production Of $31.6 million in 2007. Greece sup- Zellmer, chairman of Alto’s board of directors and a dairy farmer from Reggiano, EU Court Rules Greek Yogurt In New York State plies about 80 percent of all US Montello, WI. Madison—Increased popularity of yogurt imports, FAS figures show. Luxembourg City, Luxembourg— “Although it is hard to see an end Greek-style yogurt is no trend – it’s In the US, Stonyfield Farm, Lon- Because Germany has failed to show to the cooperative form of business a growing segment in the yogurt cat- donderry, VT, began producing that the name “Parmesan” has at Alto, our board is pleased that we egory which appeals to everyone authentic strained Greek yogurt in become generic, use of the word were able to provide an economic from gourmets to dieters to athletes. May 2007. It is now distributed “Parmesan” for cheese that does not return to our members for their comply with the specification for the Demand for Greek-style yogurt is nationally in natural foods and gro- also an indication that the US cery accounts, including Whole investment and loyalty to the coop- protected designation of origin erative,” Zellmer added. (PDO) “Parmigiano Reggiano” yogurt industry is returning full-cir- Foods Market, Stop & Shop, Kroger cle, embracing technologies that and Wal-Mart. The asset sale is expected to close infringes the protection provided for sometime during March. that PDO, the European Court of harken back to traditional European Stonyfield Farm made the deci- methods and flavors. Nowhere is sion to produce a Greek yogurt Saputo Inc. said the acquisition of Justice ruled Tuesday. Alto’s assets will enable Saputo Under the European Union’s this more evident than in the under the “Oikos” brand once it growth of yogurt imported from could locate a partner capable of Cheese USA to expand its business (EU) PDO regulation, products reg- and represents a major step in its istered as a PDO are protected Greece. making an authentic, strained As recently as 2002, USDA’s For- goal to achieve a stronger presence against “any misuse, imitation or Greek-style yogurt. eign Agricultural Service (FAS) fig- in the US. • evocation.” Generic names may not, It’s the straining process that ures show that US imports of yogurt however, be registered, and regis- helps deliver the incredible creami- from Greece were less than one mil- tered designations may not become ness and texture of Greek yogurt, lion pounds. By last year, imports of INSIDE THIS ISSUE: generic. said Peter Lewis, director of innova- Greek yogurt had jumped to 19.3 “Drug Residues In Milk” p. 2 Being of the opinion that Ger- tion and business development, million pounds. That was up 70.4 many does not sufficiently protect Stonyfield Farm. World Cheese Contest Sets Record p. 3 percent just from 2006. the PDO “Parmigiano Reggiano,” “Some other brands take a short The value of these yogurt imports Codex Redraft Processed Cheese p. 7 the European Commission brought cut and rely on high fat content, from Greece has risen dramatically, Cancelled Contracts Cause Chaos p. 9 See EU Parmesan Ruling, p. 25 from just $1.2 million in 2002 to • See Greek-Style Yogurt, p. 8 Class III Milk Prices p. 22 12 CHEESE REPORTER February 29, 2008 Greek-Style Yogurt Consumer demand for “ridicu- Continued from p. 1 lously thick” Greek-style yogurt is continually rising, according to Ioan- starches and gelatins to try and nis Papageorgiou, president and approximate a true Greek yogurt’s COO, FAGE USA Dairy Industry, incredible taste and texture...but not Inc. us,” Lewis said. Our partner also had to be organic New FAGE USA Greek Yogurt Plant because we use exclusively organic To Begin Production Next Month ingredients in Oikos yogurt, he con- The leading dairy company in tinued. Greece, FAGE was the first to mar- Oikos will be in one out of every ket Greek-style yogurt in 1975. The three Wal-Mart Supercenters early company’s brand “Total” is FAGE’s this year and is setting sales records signature product. for a Stonyfield Farm new item “The success of Total led other launch, Lewis said. manufacturers outside of Greece to “Without a doubt, Greek yogurt is imitate the product using ‘Greek- Stonyfield Farms’ Oikos. An organic the next big thing in the US yogurt style’ as a product descriptor, but Greek-style yogurt market,” he said. there’s only one authentic Greek It’s not a trend – it’s a new seg- yogurt company,” Papageorgiou said. tantly, production of FAGE in the tional yogurt embraced by consumers ment in the yogurt category, Lewis FAGE USA is currently investing US will not change the taste, texture in the US, Davis said. said. It appeals to a wide variety of about $80 million to build a new pro- or price of Total yogurt.