Volume 31 June 3, 2011 Number 19
A INSIDE Dairy featured as part of meal Guest columnist: in USDA’s new ‘MyPlate’ icon ‘California dairy hits on tap at show.’ WASHINGTON — First Lady against your maximum limit for Council. “The location of dairy For details, see page 4. Michelle Obama and U.S. Agri- ‘empty calories’ (calories from on the graphic really helps it culture Secretary Tom Vilsack solid fats and added sugars),” stand out as an essential part Dairy Institute of Calif., on Thursday unveiled a new USDA says. of a healthy eating plan.” WUD request CDFA food icon, “MyPlate,” which All fluid milk products and Jerry Kozak, president hearing be delayed. replaces the “MyPyramid” icon many foods made from milk are and CEO of the National Milk For details, see page 5. and features dairy as a key considered part of the dairy Producers Federation, notes component of each meal. group. Foods made from milk the new icon is a simple visual Exclusive: CMN’s annual USDA introduced the new that have little to no calcium metaphor of a serving of dairy ‘Key Players’ profiles. food icon to replace the — such as cream cheese, cream products alongside a plate. For details, see pages 9-52. “MyPyramid” image as the ing habits consistent with the and butter — are not, USDA “Dairy foods are right- government’s primary food 2010 Dietary Guidelines for says. Calcium-fortified soy milk fully being recognized, from Bill Jacoby to receive group symbol. USDA touts Americans. (soy beverage) also is part of the school house to the White WDPA Presidents Award. the change as an easy-to- “MyPyramid” will remain the dairy group. House, as an important part of For details, see page 51. understand visual cue to help available to interested health USDA will work with First everyone’s diet,” Kozak says. consumers adopt healthy eat- professionals and nutrition Lady Michelle Obama’s “Let’s Connie Tipton, president educators in a special section of Move!” initiative and public and and CEO of the International the new website, www.Choose private partners to promote Dairy Foods Association, adds MyPlate.gov, USDA notes. “MyPlate” and its website as that the new icon “highlights Key Players 2011 The new food icon em- well as the supporting nutri- how beneficial a serving of phasizes the fruit, vegetable, tion messages and “how-to” dairy at every meal can be and By the staff of Cheese Market News grains, protein and dairy food resources. helps to educate people about groups. It emphasizes that The U.S. dairy industry on dairy’s role on the table and in Welcome to Cheese Market News’ 2011 edition of “Key Players,” our fruits and vegetables should Thursday praised the new icon, the American diet.” annual profile of who’s who in the U.S. cheese industry. make up half of a meal, while saying it provides a clear and Vivien Godfrey, CEO of the “Key Players” takes an in-depth look at what a select group of protein is the smallest part of visual message that a healthy Milk Processor Education cheese companies has accomplished in the past year and what they the plate. The grain portion diet is comprised of a variety of Program, notes that milk are planning for the rest of this year. is a bit larger and still offers nutrient-rich foods, including provides a unique package Selection by our staff as a “Key Player” isn’t based on a company’s the advice to “make half your lowfat and fat-free milk, cheese of nine essential nutrients sales or production volume. Rather, in “Key Players” we attempt grains whole.” and yogurt. that are important for good to provide you with a look at the industry as a whole, ranging from For dairy, USDA recom- “Knowing what we do about health. some of the smallest up-and-coming award-winning cheesemakers to mends that consumers choose dairy’s ability to reduce the risk “We are firm believers in long-established companies with multiple plants producing millions fat-free or lowfat milk, yogurt of conditions like osteoporo- the importance of ‘pouring one of pounds of cheese used in every prepared food imaginable. Despite and cheese. sis, hypertension and type 2 more’ serving of dairy, and this their differences, all of these cheese companies have one thing in “If you choose milk or diabetes, we think it’s excit- tool will be a fresh reminder common: They are constantly innovating and shaping the future of yogurt that is not fat-free, ing that dairy is highlighted to all Americans as they sit the U.S. dairy industry. or cheese that is not lowfat, individually,” says Jean Ragalie, down at their tables with While each profile provides you with insight into a specific company, the fat in the product counts president of the National Dairy their families,” she says. CMN in its entirety “Key Players” is a snapshot of where the dairy industry is in 2011. In this year’s piece, you will read about cheese company consolidation, measures companies are taking to minimize their use of natural resources and environmental impact, the move toward third- party food safety audits and certifications, and the increasing effort Groupon offers industry new Cheese production by many companies to be flexible and work with their customers to in U.S. increases provide specific, custom products to meet changing needs. channel for customer growth Even though the economy struggles, in these pages you will learn 2 percent in April By Alyssa Sowerwine which companies are expanding through the construction of new plants WASHINGTON — Total U.S. or major plant renovations. You will see companies becoming more cheese production was 882.0 involved in the export market. And you will see how the development MADISON, Wis. — The digital age has changed the way com- panies interact with consumers. Once limited to print, radio or million pounds in April, 2.1 of social media is molding and shaping companies’ marketing tactics. percent above April 2010’s We do know that having an understanding of a company’s size television advertisements, companies now can keep customers up to date on the latest products, news and deals on Facebook, 864.1 million pounds, ac- and scope is helpful in understanding a company’s positioning in the cording to preliminary data industry, so whenever possible we have provided sales and production Twitter and via blog updates. Another website, Groupon.com, has offered companies yet an- released this week by USDA’s data. However, you will notice we have not ranked the companies by National Agricultural Sta- size but instead have listed them alphabetically. This is because they other collaborative option to grow their consumer base. Launched in November 2008 in Chicago, Groupon features daily deals on things tistics Service (NASS). (All each are making an important and unique contribution to the growth figures are rounded. Please of the industry. to do, see, eat and buy in more than 400 markets and thousands of cities around the world. The service is a project of The Point, a see CMN’s Dairy Production To find out more about the profiled companies and to learn more chart on page 8.) about where the U.S. cheese industry is headed, please read on … website that allows anyone to start a campaign asking people to give money or do something as a group — but only once a “tipping point” April cheese production Turn to KEY PLAYERS, page 9 Turn to GROUPON, page 6 Turn to NASS, page 8 Reprinted with permission from the June 3, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 2 CHEESE MARKET NEWS® — June 3, 2011 MARKET INDICATORS
Chicago Mercantile Exchange CHEESE FUTURES for the week ended June 2, 2011 Cash prices for the week ended June 3, 2011 (Listings for each day by month, settling price and open interest) Monday Tuesday Wednesday Thursday Friday Fri., May 27 Mon., May 30 Tues., May 31 Wed., June 1 Thurs., June 2 May 30 May 31 June 1 June 2 June 3 MAY11 1.650 298 1.650 298 1.650 298 1.650 298 JUN11 1.827 384 1.854 384 1.873 384 1.873 392 Cheese Barrels JUL11 1.870 202 1.929 202 1.962 202 1.962 220 Price $1.8700 $1.8725 $1.8875 $1.9600 AUG11 1.850 169 1.863 169 1.889 169 1.889 185 Change Markets +5 1/4 +1/4 +1 1/2 +7 1/4 SEP11 1.830 187 1.846 187 1.846 187 1.846 195 Closed OCT11 1.793 243 Markets 1.793 243 1.793 243 1.793 251 Cheese 40-lb. block NOV11 1.751 287 Closed 1.759 287 1.778 287 1.768 303 Price $1.9500 DEC11 1.710 259 1.714 259 1.717 259 1.717 259 $1.8700 $1.9050 $2.0500 JAN12 1.666 31 1.666 31 1.666 31 1.666 31 Change +6 +3 1/2 +4 1/2 +10 FEB12 1.653 30 1.653 30 1.653 30 1.653 30 MAR12 1.660 30 1.660 30 1.660 30 1.660 30 Weekly average (May 31-June 3): Barrels: $1.8975(+.1345); 40-lb. Blocks: $1.9438(+.1778). APR12 1.683 30 1.683 30 1.683 30 1.683 30 Weekly ave. one year ago (June 1-4, 2010): Barrels: $1.3744; 40-lb. Blocks: $1.4156. MAY12 1.693 30 1.693 30 1.693 30 1.693 30 JUN12 1.693 30 1.693 30 1.693 30 1.693 30 Extra Grade NDM Total Contracts Traded/ Price $1.6100 $1.6100 $1.6100 $1.6100 Open Interest 5/2,210 0/2,210 1/2,210 76/2,284 Change Markets NC NC NC NC Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. Grade A NDM Closed Price $1.6400 $1.6400 $1.6425 $1.6425 Change NC NC +1/4 NC DRY WHEY FUTURES* for the week ended June 2, 2011 Weekly average (May 31-June 3): Extra Grade: $1.6100(NC); Grade A: $1.6413(+.0083). (Listings for each day by month, settling price and open interest)
Fri., May 27 Mon., May 30 Tues., May 31 Wed., June 1 Thurs., June 2 Grade AA Butter Markets 426 426 426 49.65 426 Price Closed $2.1625 $2.1625 $2.1625 $2.1425 MAY11 49.65 49.65 49.65 -1 3/4 NC NC -2 JUN11 52.50 332 52.50 332 52.50 332 52.50 332 Change JUL11 56.03 195 56.03 195 56.50 195 56.50 195 Weekly average (May 31-June 3): Grade AA: $2.1575(+.0220). AUG11 57.00 173 57.00 173 57.00 173 57.00 173 SEP11 57.00 169 57.00 169 57.00 169 57.00 169 Class II Cream (Major Northeast Cities): $2.6480(+.1385)–$2.9256(+.1692). OCT11 57.00 155 Markets 57.00 155 57.00 155 57.00 155 NOV11 55.50 151 Closed 55.50 151 55.50 151 55.50 151 DEC11 54.00 134 54.00 134 54.00 134 54.00 134 Sign up for our daily fax or e-mail service for just $104 a year. Call us at 608-288-9090. JAN12 48.00 17 48.00 17 48.00 17 48.00 17 FEB12 45.50 17 45.50 17 45.50 17 45.50 17 MAR12 46.25 19 46.25 19 46.25 19 46.25 19 APR12 40.25 11 40.25 11 40.25 11 40.25 11 MAY12 40.25 11 40.25 11 40.25 11 40.25 11 JUN12 40.25 11 40.25 11 40.25 11 40.25 11 Weekly Cold Storage Holdings May 30, 2011 Total Contracts Traded/ On hand Week Change since May 1 Last Year Open Interest 10/1,887 0/1,887 1/1,887 3/1,887 Monday Change Pounds Percent Pounds Change Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. Butter 8,312 -107 +329 +4 9,250 -938 *Total Contracts Traded/Open Interest reflect additional months not included in this chart. Cheese 123,687 +626 -4,077 -3 125,256 -1,569 (These data, which includes government stocks and is 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 trends Cheddar Cheese and Dairy Product Prices in cold storage between the release of the National Agricultural Statistics Service’s monthly cold storage reports.) For the week ended: 5/28/11 5/21/11 5/14/11 5/7/11 Cheese 40-lb. Blocks: Average price1 CLASS III PRICE Minn./Wis. $1.7605 $1.7107 $1.6986 $1.6858 (Dollars per hundredweight, 3.5% butterfat test) Other states $1.6469 $1.6314 $1.6213 $1.6111 JAN JUL DEC U.S. $1.6570 $1.6393 $1.6262 $1.6182 YEAR FEB MAR APR MAY JUN AUG SEP OCT NOV 2 2005 14.14 14.70 14.08 14.61 13.77 13.92 14.35 13.60 14.30 14.35 13.35 13.37 Sales volume 2006 13.39 12.20 11.11 10.93 10.83 11.29 10.92 11.06 12.29 12.32 12.84 13.47 Minn./Wis. 844,365 1,115,144 706,450 1,047,041 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 Other states 8,682,468 10,065,635 10,522,496 10,058,356 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 U.S. 9,526,833 11,180,779 11,228,946 11,105,397 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 Cheese 500-lb. Barrels: 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 Average price1 2011 13.48 17.00 19.40 16.87 16.52 Minn./Wis. $1.7902 $1.7604 $1.7356 $1.7032 Other states $1.7590 $1.7508 $1.7327 $1.6952 U.S. $1.7721 $1.7551 $1.7339 $1.6991 STAFF SUBSCRIPTION INFORMATION Adj. price to 38% moisture Susan Quarne, Publisher Cheese Market News®, Publication #0598-030, Minn./Wis. $1.7080 $1.6811 $1.6608 $1.6290 (PH 608/831-6002; FAX 608/831-1004) (ISSN 0891-1509), is published weekly by Quarne Publishing Other states $1.6707 $1.6575 $1.6410 $1.6091 e-mail: [email protected] LLC, 4692 Signature Drive, Middleton, WI 53562; Phone U.S. $1.6863 $1.6680 $1.6493 $1.6187 Kate Sander, Editorial Director 608/831-6002; FAX 608/831-1004. Periodicals postage Sales volume2 (PH 509/962-4026; FAX 509/962-4027) paid at Madison, WI. Circulation records are maintained by Quarne Publishing LLC, 4692 Signature Drive, Middleton, WI Minn./Wis. e-mail: [email protected] 4,015,837 4,356,513 3,867,471 4,987,474 53562. POSTMASTER: Send address changes to Cheese Alyssa Sowerwine, Senior Editor Other states 5,554,153 5,398,244 5,313,209 5,236,790 Market News®, Subscriber Services, P. O. Box 628254, U.S. (PH 608/288-9090; FAX 608/288-9093) Middleton, WI 53562; Form 3579 requested; or call direct 9,569,990 9,754,757 9,180,680 10,224,264 e-mail: [email protected] at 608/831-6002. All rights reserved under the United States Moisture content Rena Archwamety, News/Web Editor International and Pan-American Copyright Conventions. Minn./Wis. 35.02% 35.08% 35.21% 35.17% (PH 608/288-9090; FAX 608/288-9093) No part of this publication may be reproduced, stored in a Other states e-mail: [email protected] retrieval system or transmitted in any form or by any means, 34.72% 34.51% 34.53% 34.68% Johanna Nelson, Features Editor mechanical, photocopying, electronic recording or otherwise, U.S. 34.85% 34.76% 34.82% 34.92% (PH 608/288-9090; FAX 608/288-9093) without the prior written permission of Quarne Publishing LLC. Butter: e-mail: [email protected] Opinions expressed in articles are those of the authors and 1 Average price U.S. $2.0466 $1.9951 $2.0806 $2.0227 2 REGULAR CONTRIBUTORS dba Cheese Market News®. Cheese Market News® does not Sales volume U.S. 4,820,883 5,439,653 4,426,334 6,335,894 Joseph O’Donnell, John Umhoefer, Downes-O'Neill LLC, endorse the products of any advertiser and does not assume Nonfat Dry Milk: International Dairy Foods Association, National Milk and hereby disclaims any liability to any person for any loss Average price1 U.S. $1.6262 $1.6171 *$1.6145 *$1.6005 Producers Federation, U.S. Dairy Export Council or damage caused by errors or omissions in the material 2 contained herein, regardless of whether such errors result Sales volume U.S. 18,646,983 19,298,445 *18,698,700 *21,181,608 SUBSCRIPTIONS & BUSINESS STAFF from negligence, accident or any other cause whatsoever. Dry Whey: Subscription/advertising rates available upon request 1 Copyright 2011 by Quarne Publishing LLC. Average price U.S. $.5035 $.5046 $.4936 $.4891 Contact: Susan Quarne - Publisher Subscriptions: $135 for U.S., second-class delivery; $190 Sales volume2 U.S. P.O. Box 628254, Middleton, WI 53562 - 10,963,078 8,607,769 12,343,130 10,592,279 $#" F+ national rate to all others. Printed in U.S.A. */Revised. 1/Prices weighted by volumes reported. 2/Sales as reported by participating manufacturers. WEBSITE: www.cheesemarketnews.com Reported in pounds. More information is available by calling NASS at 202-690-2424.
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 3, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the June 3, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com June 3, 2011 — CHEESE MARKET NEWS® 3 NEWS/BUSINESS MARKET INDICATORS Most prices up following latest gDT auction AUCKLAND, New Zealand — The trade ($1.9831 per pound), while average prices CHEESE FUTURES weighted index was up 4.5 percent, and for AMF were up 6.2 percent to US$5,669 prices for anhydrous milkfat (AMF) and per metric ton FAS ($2.5714 per pound). NOW TRADING. skim milk powder (SMP) increased follow- The average price for whole milk YOU CAN CUT YOUR HEDGING COSTS ing the latest event on globalDairyTrade, powder (WMP) was down 3.0 percent to TRADE WITH GPC FOR $3.41 PER SIDE Fonterra’s internet-based sales platform. US$3,780 per metric ton FAS ($1.7146 I Class III Milk I Class IV Milk I Whey I Cheese Following Tuesday’s event, the average per pound). I Cash Settle Butter I NFDM I Options price achieved across all contracts and The next trading event will be I Trade Electronically $3.41 Side* contract periods for SMP was up 12.9 held June 15. For more information, JOE, ART, LEON & JARON GRESSEL percent to US$4,372 per metric ton FAS visit www.globalDairyTrade.info. CMN
California Minimum Prices BROKERS OF DAIRY FUTURES & OPTIONS SERVING AGRI-BUSINESS SINCE 1933 Released June 1, 2011 * Plus front end fees, Call Free: 1-877-Gressel when applicable Southwestern Division: (602) 374-3885 Butterfat SNF Equivalent There is a risk of loss in trading futures. [email protected] Class 4a $ 2.2379/lb. $ 1.3914/lb. $ 19.94/cwt. Class 4b $ 2.2379/lb. $ 0.7934/lb. $ 14.74/cwt. For more information circle 1 on the FAST FAX form on page 48. Class & Component Prices for the week ended June 2, 2011 May 2011 April 2011 CME FUTURES Class III: Class III Milk#* Price $ 16.52/cwt. $ 16.87/cwt. Fri., May 27 Mon., May 30 Tues., May 31 Wed., June 1 Thurs., June 2 Skim Price $ 8.96/cwt. $ 9.46/cwt. MAY11 16.55 5,283 16.54 5,248 16.53 5,218 16.52 5,219 Class IV: JUN11 18.48 4,996 18.75 5,010 18.94 5,085 18.89 4,994 Price $ 20.29/cwt. $ 19.78/cwt. JUL11 19.12 4,787 19.69 4,895 20.05 5,069 19.95 5,075 AUG11 18.96 4,335 19.22 4,422 19.49 4,466 19.41 4,517 Skim Price $ 12.87/cwt. $ 12.48/cwt. SEP11 18.78 4,106 19.04 4,165 19.24 4,259 19.13 4,386 Class II: OCT11 18.22 3,435 18.40 3,412 18.60 3,503 18.47 3,519 Price $ 20.63/cwt. $ 19.66/cwt. NOV11 17.89 3,104 18.05 3,138 18.22 3,194 18.02 3,229 DEC11 17.34 3,164 17.50 3,189 17.71 3,204 17.60 3,256 Markets Butterfat Price $ 2.2567/lb. $ 2.2183/lb. JAN12 16.90 557 17.10 573 17.36 606 17.30 612 Closed Component Prices: FEB12 16.54 440 16.60 445 16.80 468 16.72 479 Butterfat Price $ 2.2497/lb. $ 2.2113/lb. MAR12 16.41 404 16.50 405 16.60 406 16.55 419 APR12 16.32 276 16.45 284 16.50 306 16.50 336 Nonfat Solids Price $ 1.4298/lb. $ 1.3862/lb. MAY12 16.27 231 16.30 246 16.40 254 16.40 265 Protein Price $ 2.3133/lb. $ 2.4984/lb. JUN12 16.39 217 16.40 237 16.45 237 16.40 238 Other Solids Price $ 0.3026/lb. $ 0.2902/lb. JUL12 16.31 163 16.31 173 16.40 181 16.50 186 AUG12 16.30 164 16.30 174 16.40 179 16.40 187 Somatic Cell Adjustment Rate $ 0.00083/1,000 scc $ 0.00085/1,000 scc SEP12 16.34 153 16.34 158 16.45 162 16.45 173 Product Price Averages: OCT12 16.25 134 16.25 146 16.35 151 16.35 159 Butter $ 2.0292/lb. $ 1.9975/lb. NOV12 16.25 133 16.30 144 16.30 148 16.30 151 DEC12 16.25 134 16.25 144 16.30 149 16.30 151 Nonfat Dry Milk $ 1.6120/lb. $ 1.5680/lb. Cheese $ 1.6534/lb. $ 1.6983/lb. Total Contracts Traded/ Open Interest 1 , 2 8 3 / 3 6 , 2 1 6 2,209/36,608 2,462/37,247 1 , 5 9 8 / 3 7 , 5 5 3 Dry Whey $ 0.4929/lb. $ 0.4808/lb. Class IV Milk Fri., May 27 Mon., May 30 Tues., May 31 Wed., June 1 Thurs., June 2 Dry Products* June 3, 2011 MAY11 20.21 491 20.21 491 20.21 491 20.21 491 JUN11 20.80 575 20.80 575 20.80 579 20.90 577 JUL11 20.56 690 20.56 690 20.57 697 20.57 703 NONFAT DRY MILK AUG11 20.50 687 Markets 20.50 687 20.50 700 20.65 708 Central & East: low/medium heat $1.6500(+3)-$1.7100; SEP11 20.20 553 Closed 20.20 554 20.40 566 20.50 584 mostly $1.6600(+2)-$1.6900(+1). OCT11 20.05 500 20.05 500 20.26 512 20.28 518 high heat $1.7300(+2)-$1.8000. NOV11 19.69 419 19.74 419 19.88 434 19.87 437 West: low/medium heat $1.5800(+3)-$1.6800(+1/2); DEC11 18.97 313 18.97 313 19.00 328 19.01 334 JAN12 17.76 11 17.75 11 17.75 11 17.75 11 mostly $1.6100(+1)-$1.6400(+1/2). high heat $1.6500(+1)-$1.8200. Total Contracts Traded/ Calif. manufacturing plants: extra grade/grade A weighted ave. $1.5924(-.0153) Open Interest 14/4,239 1/4,240 91/4,318 1 2 1 / 4 , 3 6 3 based on 14,556,715 lbs. Sales to CCC: 0 lbs. Cash-Settled NDM Fri., May 27 Mon., May 30 Tues., May 31 Wed., June 1 Thurs., June 2 WHOLE MILK POWDER (National): $1.9000-$2.0000. MAY11 161.75 343 161.75 343 161.75 343 161.75 343 JUN11 161.50 457 161.50 457 161.50 457 161.50 457 EDIBLE LACTOSE JUL11 155.50 449 158.50 449 158.50 449 160.00 438 (FOB)Central and West: $.3600-$.5700(+1); mostly $.4300-$.5100. AUG11 156.25 420 Markets 156.25 420 156.25 420 158.75 420 SEP11 155.00 268 Closed 155.00 268 155.00 268 157.50 275 OCT11 153.35 196 153.35 196 154.00 196 154.50 196 DRY WHEY NOV11 148.95 120 148.95 120 148.95 120 150.00 125 Central: nonhygroscopic $.4700-$.5300; DEC11 146.88 116 146.88 116 147.00 121 146.75 125 mostly $.4750-$.5200. Total Contracts Traded/ West: nonhygroscopic $.4925-$.5500; Open Interest 9/2,369 0/2,369 13/2,374 49/2,379 mostly $.5075(+1/4)-$.5450(+3/4). (FOB) Northeast: extra grade/grade A $.5000(+1/4)-$.5375(-1/4). Cash-Settled Butter Fri., May 27 Mon., May 30 Tues., May 31 Wed., June 1 Thurs., June 2 ANIMAL FEED (Central): Whey spray milk replacer $.3700-$.4900(-3). MAY11 202.08 450 202.08 450 202.08 450 202.08 450 JUN11 216.98 471 216.00 471 217.00 470 216.50 467 JUL11 216.03 615 216.03 615 217.50 643 217.25 654 WHEY PROTEIN CONCENTRATE (34 percent): $1.4700-$1.6500(+1/2); Markets AUG11 217.48 659 Closed 217.25 659 217.75 694 217.00 709 mostly $1.5100(+2)-$1.5700(+2). SEP11 218.48 495 217.50 497 218.50 553 217.75 575 OCT11 216.25 318 216.25 318 218.48 366 217.00 392 DRY BUTTERMILK NOV11 217.00 272 217.00 272 218.50 316 217.98 338 DEC11 (FOB)Central & East: $1.4600-$1.6300. 204.00 210 204.00 210 204.03 210 204.00 229 (FOB) West: $1.4800(+1 1/2)-$1.5500(+1); mostly $1.4900(+2)-$1.5100. Total Contracts Traded/ Open Interest 5/3,490 2/3,492 227/3,702 143/3,814 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. CASEIN: Rennet $4.7600-$5.1400; Acid $4.7000-$5.1200. #The total contracts traded for Class III milk includes electronically-traded contract volumes. *Total Contracts Traded/Open Interest reflect additional months not included in this chart. *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 3, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 4 CHEESE MARKET NEWS® — June 3, 2011 GUEST COLUMNISTS
California dairy to build their business. milk in his food trends to watch this The recent Cheese Market News year for a reason. This grocery staple Perspective: article (April 22) pointing to a renais- presents one of the biggest opportuni- Dairy Marketing sance of artisan cheesemaking in the ties for growth and value-added sales at United States is good news for proces- retail. Consumers want foods that are Jennifer Giambroni is director of sors and retailers alike. It means that nutritionally balanced and milk has a communications for the California consumers are continuing their love nutritional pedigree unbeaten by any Milk Advisory Board. She is a guest affair with cheese and are putting their other beverage. Shoppers are already columnist for this week’s Cheese money literally where their mouth is to spending millions on enhanced bever- Market News®. search out the hand-crafted, artisanal ages — why not on a nutritionally-en- cheeses they crave. And with the rise hanced version of the milk they already of social media, it is easier for them to love? The potential is there and recent find these foods (and share them with CMAB research shows consumers are others) than ever before. very interested. Just as consumers have expanded What’s the new-new food sensation their cheese horizons over the years that will drive sales next? Think beyond from basic American slices to the the restaurant plate and food magazine creamiest and most fragrant varieties — it’s coming from food trucks, pop-up available, so too are we waking up to the restaurants and Twitter. As food market- California dairy hits on tap at show veritable plethora of dairy foods avail- ers, we need to be keeping all eyes and able. Foods once considered “ethnic” or ears tuned into what consumers — not It’s dairy month and that means the state’s largest agricultural commodity. sold only in specialty stores are hitting just the “experts” — are saying and return of the International Dairy Deli Our dairy families are responsible for the mainstream driven by consumer sharing. And we need to personalize the Bakery Association’s (IDDBA) “Show 21 percent of the nation’s milk supply demand. Greek yogurt is just one ex- experience whenever we can. Interactive of Shows.” The IDDBA theme this year that goes into the dairy foods consumers ample. As consumers continue their tools like QR codes and shopping apps is “Rock Star Food” — which is an ap- love. And California processors churn quest for culinary knowledge — through allow us to connect with consumers right propriate title for dairy. When it comes out more fluid milk, butter, ice cream travel, education and, yes, even food TV, in the store. By bringing our products into to foods that play a starring role in the and yogurt that any other state — items don’t be surprised to see products like their shopping experience (for example, dishes we love and in the food trends that will be on full display in Anaheim, Labne, drinkable yogurts and Latin- CMAB has a “Pair Savvy” smart phone app that drive consumer choices, dairy hits along with a full street of cheeses that style creams making the leap to the that helps consumers identify cheeses the top 10 every week. carry the Real California seal. conventional consumer market basket. with the Real California Cheese seal For California, host to IDDBA this So what does that mean to attendees And let’s not forget fluid milk. Su- and find pairing options) we are able to year, dairy is top of the charts. It is the this year? More opportunities to use permarket guru Phil Lempert included Turn to GIAMBRONI, page 5
®
Come Visit Our "California Pavilion" 7 0%0.##0%##/#++0% 7+/#,% .)/++0% 7&5++,#5++"/*!++0% 7#((3#0%#. .)/++0% 7 .+1* &./*!++0% 71)& *+%##/#+++0% 7. 2+ .)/%##/#++0% 7 !0 (&/#(&++0% 7 *0&*&++"/++0% 7 !&-1#+++0% 7 .&*.#*!%%##/#+++0% 7.. #2 " %##/#+++0% 7 (&$+.*& &./++0% 7!+**#((6/!#.# )++0% 7+*+) %##/#++0% 7 (&$+.*& &('"2&/+.4+ ."++0% 7&! /&+ ((#4%##/#+++0% 7 % 2 .+1,*!++0% 7&/! (&*&%##/#+++0% 7 !&$&!%##/#+), *4++0% 7.# 0 '#/%##/#++0% 7+&*0#4#/ .)/0# "%##/#+++0%
For more information circle 2 on the FAST FAX form on page 48.
Reprinted with permission from the June 3, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the June 3, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com June 3, 2011 — CHEESE MARKET NEWS® 5 NEWS/BUSINESS Dairy Institute of California, Western United Dairymen request CDFA hearing be delayed SACRAMENTO, Calif. — Western schedules hearing to consider changes the economic fragility of California dairy long-term.” United Dairymen (WUD) and the to 4a, 4b” in last week’s issue of Cheese families, is something that demands CDI this week responded with a let- Dairy Institute of California each sent Market News). California Dairies Inc. thoughtful due diligence, analysis and ter urging CDFA to deny the requests a letter last Friday requesting that the (CDI), Land O’Lakes and the California deliberation,” says WUD CEO Michael for a 15-day extension. The letter argues California Department of Food and Dairy Campaign had asked CDFA to Marsh in the letter. that discussion of the proposed changes Agriculture (CDFA) delay the date it consider updates to the Class 4a and The letter from the Dairy Institute has taken place since December, and recently set for a hearing to consider 4b formulas. of California questions why there is a that both WUD and the Dairy Institute changes to the state’s Class 4a and 4b Both WUD and the Dairy Institute need for a compressed schedule when were informed in January of the likeli- milk pricing formulas. say in their letters that the current the cost data for the proposed changes hood of the petition. Last week CDFA announced it will hearing dates do not provide enough has been available since November “In short, the two parties that sub- hold a public hearing June 30 and July time for preparation and analysis of 2010, and new cost data would come out mitted letters to delay the hearing have 1 to consider amendments to the stabi- the petitions. Both groups request a soon after any changes resulting from had ample time to consider the proposed lization and marketing plans for market 15-day extension of the established the hearing might take effect. ideas, conduct analyses and deliberate milk in the northern and southern hearing schedule. “We realize that it has been several on the merits of the petitions,” writes California marketing areas (see “CDFA “A hearing to adjust formulas, given years since the last Class 4a and 4b hear- Eric Erba, senior vice president of ad- ing,” writes Rachel Kaldor, executive ministrative affairs, CDI. “Delaying the Crean, Viviani create Estate Cheese Group director, Dairy Institute of California. hearing scheduled for June 30th and “But moving in haste, when neither July 1st by 15 days is unlikely to make SONOMA, Calif. — John Crean of So- in Anaheim, Calif., in booth #1708 in the urgency nor the calendar seems to any significant difference in the posi- noma, Calif., and David Viviani of San the California Street of Cheeses. The warrant, does little to advance the best tion adopted by any organization that Francisco recently announced they have group will feature Petaluma Creamery’s interest of the California dairy industry would participate in the hearing.” CMN formed Estate Cheese Group to develop Spring Hill cheeses and other products. the market for better cheeses and dairy “We recognize that consumers wish products made by family-owned compa- not necessarily to eat more, but to eat bet- Sealed Air to acquire Diversey for $4.3 billion nies in premier cheesemaking regions. ter,” Crean and Viviani say. “Our products ELMWOOD PARK, N.J. — Sealed cused on pioneering a differentiated, Crean most recently co-founded Win- are crafted with the belief that family- Air Corp. and Diversey Holdings proprietary range of offerings in mate- ery Exchange in Novato, Calif. Viviani owned, local, appellated, sustainable, Inc. this week announced they have rial science, automation technology founded and owned Sonoma Cheese Co. organic and humanely raised are the entered into a definitive agreement and service-based solutions in order Estate Cheese Group will be at way of the future in the dairy industry.” under which Sealed Air will acquire to provide comprehensive solutions the International Dairy-Deli-Bakery For more information, vis- Diversey in a transaction valued at to its customers. Association (IDDBA) show June 5-7 it www.estatecheese.com. CMN $4.3 billion. “This transaction represents a stra- The transaction is expected to be tegic growth opportunity that lever- completed in 2011 and is expected to ages Sealed Air’s core competencies Atlanta milk market administrator approves be accretive to earnings in the first and positions our company to further request for extension of TCBF payout period full year following completion. capitalize on the megatrends that Under terms of the agreement, drive both businesses,” says William V. LAWRENCEVILLE, Ga. — The Appalachian and Southeast orders. Diversey shareholders will receive Hickey, president and CEO of Sealed Atlanta federal milk market order Payments are made for January- $2.1 billion in cash and an aggregate Air. “With Diversey, we will expand our administrator has approved a request February and July-December, and of 31.7 million shares of Sealed Air footprint beyond specialty packaging to extend the Transportation Credit also may be requested for June. common stock valued at $25.68 per solutions by gaining entry into a $40- Balancing Fund (TCBF) payout period Payments, collected through an as- share based on Sealed Air’s closing plus billion chemical cleaning and to June 2011 for the Southeast order sessment paid by dairy processors stock price May 31, 2011, for a total hygiene industry that has attractive marketing area. and milk handlers in these orders, equity consideration of $2.9 billion. fundamentals and is already in our Southern Marketing Agency Inc. are made using a mileage rate factor Upon closing of the transaction, value chain.” (SMA) recently submitted a request that is multiplied by the number of Diversey shareholders are expected Edward F. Lonergan, president to the market administrator to extend miles the load traveled from outside to own approximately 15 percent of and CEO of Diversey, notes the op- the payout period. an 85-mile radius of the order. Sealed Air common stock. portunities Diversey has to grow with Since 1996, in an effort to help In its request submitted May 12, Diversey, Elmwood Park, N.J., Sealed Air through increased scale balance import costs, the TCBF has SMA argues that all the elements provides cleaning, sanitation and hy- and expanded reach. provided monetary credits to milk which required the TCBF payments giene solutions to industrial and retail “We share a culture of innova- handlers who import supplemental July-February are expected to be customers in the food and beverage, tion and a global vision for our bulk milk from other states for fluid present in the month of June. (See foodservice, health care and lodging business,” Lonergan says. “I am use during months when local sup- “SMA requests transportation credit sectors, as well as to building service confident that this is a winning plies historically have been insuf- extension” in the May 20, 2011, is- contractors worldwide. combination for our employees and ficient to meet fluid needs in the sue of Cheese Market News.) CMN Sealed Air, Sturtevant, Wis., is fo- customers around the world.” CMN SPX to provide Arla Foods Ingredients with custom processing GIAMBRONI CHARLOTTE, N.C. — SPX Corp. this a leading global supplier of dry powder Henrik Andersen, CEO of Arla Foods Continued from page 4 week announced that its Flow Technology processing systems and technologies,” Ingredients, notes that dairy market re- segment has been awarded a contract to Canterna says. “Increasing our competi- search analysts are projecting increased increase not only sales but loyalty — we custom design, build and install a new tive presence in Denmark is central to our demand for whey products in both mature and developing markets. become part of their social landscape. powder processing line for Arla Foods overall growth strategy, so this newest Ingredients of Denmark. contract with Arla Foods is a significant “Implementing new powder process- We hope you’ll join us in the Califor- Utilizing SPX’s Anhydro brand drying achievement.” ing systems at our Danmark Protein nia dairy pavilion to sample innovative technologies, the new systems are de- Canterna adds that SPX looks forward plant in Norre Vium is a key step toward flavors, check out fresh merchandising signed to help Arla increase its capacity to working with Arla and leveraging its enabling us to double the production out- ideas and see how the marketing dol- to produce whey protein concentrates and engineering expertise and food process- put of our whey business,” Andersen says. lars behind the Real California Milk contribute to Arla’s broader strategic goal ing technologies to help Arla reach its “Having worked closely with SPX on other and Real California Cheese seals can of doubling its sales of powdered whey whey protein production goals for 2015. initiatives and recognizing their expertise build retail business all year long. CMN protein by 2015, says Don Canterna, presi- “This newest project also builds on in dry powder processing, we are confi- dent of SPX’s Flow Technology segment. SPX’s already strong working relationship dent that these new systems equipped The views expressed by CMN’s guest “Through our 2010 acquisition of An- with Arla Foods, which has previously with SPX’s Anhydro powder processing columnists are their own opinions hydro and its broad portfolio of evapora- trusted SPX to supply Anhydro dryer so- technologies will help us expand the and do not necessarily reflect those of tion and drying solutions utilized by dairy lutions to other Arla facilities located in capacity of our facilities and contribute Cheese Market News®. and food producers worldwide, SPX is now Argentina and Denmark,” Canterna adds. to achieving our strategic goals.” CMN Reprinted with permission from the June 3, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 6 CHEESE MARKET NEWS® — June 3, 2011 WCMA UPDATE
included growth at two major mozzarella goat cheese factory in Black Creek plants, and additions to more than 15 sites s 7OOLWICH $AIRY NEW GOAT CHEESE Perspective: producing specialty cheeses in the state. factory in Lancaster WCMA Wisconsin specialty cheese growth s 2OELLI #HEESE NEW SPECIALTY CHEESE in 2010 included strong increases in factory in Shullsburg John Umhoefer is executive specialty Cheddars (such as bandaged s 3AXON #HEESE &ACTORY NEW FARM- director of the Wisconsin Cheese Cheddar), aged Provolone, Parmesan stead cheese factory in Cleveland Makers Association. He contributes wheels, Hispanic cheeses and Feta. s (OLLANDS &AMILY