Volume 37 February 3, 2017 Number 3

Dairy leaders talk strategies

Like us on Facebook and follow us on Twitter! for dairy investment, growth A By Alyssa Mitchell LLC, Chicago; Sue Taylor, vice America (DFA), Michigan Milk creating new jobs. president of dairy economics Producers Association (MMPA) Waldvogel agrees that in- INSIDE ORLANDO, Fla. — Dairy and policy at Leprino Foods and Foremost Farms USA are in centives are important, but “no stakeholders discussed strate- Co., Denver; and Jay Waldvogel, advanced discussions to create one’s going to move somewhere ✦ Guest column: gies for investment and expan- senior vice president of strat- a stand-alone joint venture to that’s not economically viable ‘Dairy market volatility and sion of the U.S. dairy sector egy and global development build and operate a new cheese just for an incentive.” fundamental uncertainty.’ as well as factors at play in for Dairy Farmers of America, and whey production facility in “They can’t make a bad deal For details, see page 4. the market today and what to Kansas City, Missouri. Michigan. (See “Glanbia, DFA, good but can make a good deal expect in the future Tuesday Panelists note that while MMPA and Foremost Farms great,” McCully agrees. ✦ Nestle USA to move during the International Dairy farm milk production in the announce plans for new U.S. Waldvogel says most valuable headquarters to Virginia. Foods Association’s (IDFA) United States has grown by cheese and whey facility” in the are long-term incentives, such For details, see page 5. Dairy Forum here. more than 35 percent in the Jan. 27, 2017, issue of Cheese as job training programs and The session, “Where’s the past 25 years and U.S. dairy Market News.) long-term investment tools, that ✦ Kathleen Glass receives NCI Investment in Dairy?” was export volumes have grown by Waldvogel says picking a tie the plant to the community Laureate Award; Connie moderated by Marin Bozic, approximately 400 percent, location for a plant is not a rather than just money up front Tipton named Soaring Eagle. assistant professor in dairy unfortunately, reports of farm short-term or easy decision. — which can disappear quickly. For details, see page 8. foods marketing economics milk being dumped instead of Many factors go into choosing Taylor notes challenges in the Department of Applied processed have plagued the in- a site, including looking for a with feed prices, water qual- ✦ TCCA donates $1.5 million Economics at the University dustry in recent years, resulting region with a sustainable, long- ity and availability push many for OSU research facility. of Minnesota, and included in lower levels of investment in term quality milk supply and a current investments east of the For details, see page 12. panelists Michael McCully, processing capacity. good customer base. Rocky Mountains. owner of the McCully Group McCully notes that over the “You’re looking at invest- “The High Plains desert last 10 years, milk production and ments that are not quarterly, certainly remains attractive in production capacity have grown they’re not annually, they’re not terms of the intersect between in the West and Upper Midwest even generational. A plant you where cows are very comfort- INA CH but declined in the Southeast and put up in Michigan is going to able and productive,” therefore PASSP RT most of the Northeast. be there for 40, 50, 60 years. So bringing potential high profi t- A “I think one of the questions what do you need to make that ability at the farm level, without R R I VA L TO CHEESE is, do you put a plant in, thinking, choice, and if you’re making running into as many “not my ‘if you build it, they will come?’ a decision for 60 years, make back yard” issues,” she says. It’s really the opposite. You’re sure it’s the right one,” he says. “Whereas maybe 20 years going to go into an area where’s McCully notes it can be ben- ago, you might have been Foodservice fuels China’s there’s already a growing milk efi cial to research labor avail- looking more the California or supply and then build that plant.” ability — and whether there is New Mexico direction, I think demand for cheese imports • Location, location a union — and companies also those have reached a satura- McCully cites as an example may take into consideration tion point” with greater water Editor’s note: Passport to Cheese is Cheese Market News’ feature the recent announcement that state tax incentives that might concerns as well as regulated series exploring the dairy industries of nations around the world. Glanbia plc, Dairy Farmers of be available for expansion or Turn to GROWTH, page 11 a Each month this series takes an in-depth look at various nations/ regions’ dairy industries with coverage of their milk and cheese sta- tistics and key issues affecting them. The nations’ interplay with the United States also is explored. We are pleased to introduce our latest country — China. Dairy sector urges action 2016 U.S. cheese production tops By Rena Archwamety on Canada, trade with Cuba 12 billion pounds MADISON, Wis. — Cheese may be an unlikely fi nd among traditional WASHINGTON — The U.S. dairy industry this week continued to push back against Canada’s protectionist policies that are WASHINGTON — Total Chinese cuisine, but across China, restaurants are adding cheese to U.S. cheese production, the menu as Western-style foods like pizza, burgers and even tacos are effectively blocking American dairy exports into the country. A group of 17 dairy companies representing dairy farmers and excluding cottage cheese, gaining popularity among a growing urban, middle-class and young was 1.050 billion pounds in consumer base. processors from coast to coast has asked governors in 25 states to urge Canadian policymakers to uphold existing trade commitments December 2016, up 1.3 per- “Consumption of cheese has grown exponentially, and we expect cent from December 2015’s this trend to continue in the foreseeable future,” says Merle McNeil, with the United States and halt the imminent implementation of a national strategy they say would unfairly subsidize Canadian 1.036 billion pounds, ac- director of market research and analysis, U.S. Dairy Export Council cording to preliminary data (USDEC). “Most of the growth is driven by foodservice — pizza dairy products in domestic and global markets. “[U.S.-Canada] trade cannot be a one-way street with Canada released Thursday by USDA’s cheese, cream cheese, or cheese for making processed slices for use National Agricultural Sta- in foodservice.” expecting to enjoy the benefi ts of exporting its products of interest to our market while denying a sector accounting for hundreds tistics Service (NASS). (All Though it is growing, cheese remains a tiny part of people’s diets in fi gures are rounded. Please China. According to the International Dairy Federation’s World Dairy of thousands of jobs in rural America reliable access to the Canadian market,” the group says in its letter to the governors. see CMN’s Dairy Production Turn to CHINA, page 6 a Turn to TRADE, page 9 a Turn to NASS, page 10 a © 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 2 CHEESE MARKET NEWS® — February 3, 2017 MARKET INDICATORS

Chicago Mercantile Exchange Cash prices for the week ended February 3, 2017 CHEESE FUTURES for the week ending February 2, 2017 (Listings for each day by month, settling price and open interest) Monday Tuesday Wednesday Thursday Friday Jan. 30 Jan. 31 Feb. 1 Feb. 2 Feb. 3 Fri., Jan. 27 Mon., Jan. 30 Tues., Jan. 31 Wed., Feb. 1 Thurs., Feb. 2 JAN17 1.699 2,736 1.699 2,732 1.698 2,743 1.701 2,799 -- -- Cheese Barrels FEB17 1.671 2,575 1.667 2,609 1.680 2,612 1.686 2,601 1.705 2,606 Price $1.4600 $1.5175 $1.5775 $1.6975 $1.7075 MAR17 1.725 2,831 1.713 2,864 1.724 2,856 1.722 2,839 1.744 2,819 Change +1 1/4 +5 3/4 +6 +12 +1 APR17 1.751 2,501 1.740 2,572 1.738 2,576 1.742 2,583 1.753 2,584 MAY17 1.759 2,475 1.748 2,480 1.744 2,483 1.744 2,488 1.755 2,486 Cheese 40-lb. Blocks JUN17 1.774 2,281 1.768 2,309 1.764 2,335 1.765 2,340 1.771 2,329 Price $1.6900 $1.7075 $1.7500 $1.8500 $1.7400 JUL17 1.784 1,441 1.789 1,472 1.782 1,503 1.784 1,574 1.784 1,687 AUG17 1.795 1,314 1.798 1,360 1.790 1,393 1.795 1,427 1.797 1,456 Change +1/4 +1 3/4 +4 1/4 +10 -11 SEP17 1.795 1,269 1.797 1,352 1.790 1,382 1.791 1,421 1.792 1,457 OCT17 1.780 1,110 1.779 1,144 1.779 1,146 1.781 1,173 1.784 1,208 Weekly average (Jan. 30-Feb. 3): Barrels: $1.5920(+.1250); 40-lb. Blocks: $1.7475(+.0950). NOV17 1.770 1,343 1.768 1,364 1.768 1,386 1.770 1,401 1.771 1,419 Weekly ave. one year ago (Feb. 1-5, 2016): Barrels: $1.4560; 40-lb. Blocks: $1.4660. DEC17 1.743 1,313 1.742 1,342 1.740 1,354 1.748 1,369 1.747 1,392 JAN18 1.701 133 1.702 136 1.702 136 1.702 168 1.710 179 Grade A NDM FEB18 1.700 62 1.700 65 1.700 65 1.700 97 1.700 102 $0.9450 $0.9450 $0.9475 $0.9500 0.9400 MAR18 1.695 62 1.695 73 1.695 73 1.695 105 1.695 110 Price APR18 1.680 65 1.681 68 1.681 68 1.681 100 1.681 105 Change -1/4 NC +1/4 +1/4 -1 MAY18 1.700 63 1.700 66 1.700 66 1.700 98 1.700 103 JUN18 1.705 62 1.705 65 1.705 65 1.705 97 1.705 102 Weekly average (Jan. 30-Feb. 3): Grade A: $0.9455(-.0250). Total Contracts Traded/ Open Interest 493/23,636 663/24,073 262/24,242 591/24,680 559/22,144 Grade AA Butter Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. Price $2.2200 $2.2400 $2.2400 $2.1800 $2.1575 Change NC +2 NC -6 -2 1/4 Weekly average (Jan. 30-Feb. 3): Grade AA: $2.2075(NC). DRY WHEY FUTURES* for the week ended February 2, 2017 Class II Cream (Major Northeast Cities): $1.9868(-.1909)–$2.5386(-.1105). (Listings for each day by month, settling price and open interest)

Fri., Jan. 27 Mon., Jan. 30 Tues., Jan. 31 Wed., Feb. 1 Thurs., Feb. 2 Sign up for our daily fax or email service for just $104 a year. Call us at 608-288-9090. JAN17 44.250 566 44.250 566 44.250 566 44.210 577 -- -- FEB17 46.750 595 46.750 595 46.750 599 46.725 609 47.275 613 MAR17 46.900 665 46.900 667 46.900 671 46.500 675 48.000 675 APR17 47.400 612 47.000 618 47.000 623 47.000 623 48.725 638 MAY17 47.500 537 47.250 552 47.250 558 47.250 566 48.750 583 JUN17 47.400 548 47.250 558 46.750 562 46.750 580 48.250 588 CLASS III PRICE JUL17 47.500 357 47.250 361 47.000 366 47.000 378 48.100 387 (Dollars per hundredweight, 3.5% butterfat test) AUG17 47.750 339 47.500 342 47.475 346 47.475 357 48.100 364 SEP17 47.750 328 47.100 331 47.100 335 47.250 342 48.250 350 JAN JUL DEC YEAR FEB MAR APR MAY JUN AUG SEP OCT NOV OCT17 47.650 258 47.650 266 47.650 266 47.650 266 48.250 273 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 NOV17 47.750 254 47.750 262 47.750 263 47.750 267 48.250 273 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 DEC17 47.750 267 47.750 270 47.750 270 47.750 270 48.500 277 2013 18.14 17.25 16.93 17.59 18.52 18.02 17.38 17.91 18.14 18.22 18.83 18.95 JAN18 47.975 9 47.975 9 47.975 9 47.975 11 49.000 11 2014 21.15 23.35 23.33 24.31 22.57 21.36 21.60 22.25 24.60 23.82 21.94 17.82 FEB18 48.000 9 48.000 9 48.000 9 48.000 11 49.000 12 2015 16.18 15.46 15.56 15.81 16.19 16.72 16.33 16.27 15.82 15.46 15.30 14.44 MAR18 48.000 8 48.000 8 48.000 8 48.150 11 48.150 11 2016 13.72 13.80 13.74 13.63 12.76 13.22 15.24 16.91 16.39 14.82 16.76 17.40 Total Contracts Traded/ 2017 16.77 Open Interest 194/5,376 85/5,438 54/5,475 159/5,580 127/5,092 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. *Total Contracts Traded/Open Interest reflect additional months not included in this chart.

Weekly Cold Storage Holdings January 30, 2017 Dry Products* February 3, 2017 On hand Week Change since Jan. 1 Last Year Monday Change Pounds Percent Pounds Change NONFAT DRY MILK Butter 15,672 +1,685 +2,932 +23 14,496 +1,176 Central & East: low/medium heat $.9600(-1)-$1.0600; Cheese 82,631 -880 +1,274 +2 91,963 -9,332 mostly $1.0300-$1.0600. high heat $1.1300-$1.1600. (These data, which include government stocks and are reported in thousands of pounds, are based on reports from West: low/medium heat $.8900(-4)-$1.0550(-1 1/2); a limited sample of cold storage centers across the country. This chart is designed to help the dairy industry see the mostly $0.9800(-2)-$1.0300(-2). trends in cold storage between the release of the National Agricultural Statistics Service’s monthly cold storage reports.) high heat $1.0900-$1.1750(-1/2). Calif. manufacturing plants: extra grade/grade A weighted ave. $0.9975(-.0062) based on 6,023,728 lbs.

WHOLE MILK POWDER (National): $1.4000-$1.5700(-3). STAFF SUBSCRIPTION INFORMATION Susan Quarne, Publisher Cheese Market News®, Publication #0598-030, (ISSN 0891- EDIBLE LACTOSE (PH 608/831-6002; FAX 608/288-9093) 1509), is published weekly by Quarne Publishing LLC, P.O. (FOB)Central and West: $.2400-$.5800; mostly $.3400(-1)-$.4100(+1). email: [email protected] Box 628254, Middleton, WI 53562; Phone 608/831-6002; Kate Sander, Editorial Director FAX 608/288-9093. Periodicals postage paid at Madison, (PH 509/962-4026; FAX 608/288-9093) WI. Circulation records are maintained by Quarne Publishing LLC, P.O. Box 628254, Middleton, WI 53562. POSTMASTER: WHEY POWDER email: [email protected] Send address changes to Cheese Market News®, Subscriber Central: nonhygroscopic $.4025(+1 1/2)-$.5400(+2); Alyssa Mitchell, Managing Editor Services, P. O. Box 628254, Middleton, WI 53562; Form (PH 608/288-9090; FAX 608/288-9093) mostly $.4200(+1 3/4)-$.4700(+1 1/4). 3579 requested; or call direct at 608/831-6002. All rights West: nonhygroscopic $.4300(+1)-$.5550(+1/2); email: [email protected] reserved under the United States International and Pan- Rena Archwamety, Senior Editor American Copyright Conventions. No part of this publication mostly $.4450(+3/4)-$.5225(+2 1/4). (PH 608/288-9090; FAX 608/288-9093) may be reproduced, stored in a retrieval system or transmitted (FOB) Northeast: extra grade/grade A $.4300(+1/4)-$.5650(+5 1/2). email: [email protected] in any form or by any means, mechanical, photocopying, Stephanie Awe, Assistant Editor electronic recording or otherwise, without the prior written ANIMAL FEED WHEY (Central): Whey spray milk replacer $.3400(+1)-$.4450. (PH 608/288-9090; FAX 608/288-9093) permission of Quarne Publishing LLC. Opinions expressed email: [email protected] in articles are those of the authors and do not necessarily UHÁHFWWKRVHRI4XDUQH3XEOLVKLQJ//&GED&KHHVH0DUNHW WHEY PROTEIN CONCENTRATE (34 percent): $.8500(+2 1/2)-$1.1300(+3); REGULAR CONTRIBUTORS ® ® News . Cheese Market News does not endorse the products mostly $.9000(+5)-$1.0300. Creative Business Services, FCStone, International Dairy of any advertiser and does not assume and hereby disclaims Foods Association, Eric Meyer, National Milk Producers any liability to any person for any loss or damage caused by Federation, Rice Dairy, John Umhoefer, U.S. Dairy Export errors or omissions in the material contained herein, regard- DRY BUTTERMILK Council, WOW Logistics, Edward Zimmerman less of whether such errors result from negligence, accident (FOB)Central & East: $.8900-$1.0400(-1). ADVERTISING/SUBSCRIPTION ORDERS & INFO or any other cause whatsoever. Copyright 2017 by Quarne Publishing LLC. (FOB) West: $.9200-$1.0900(+4); mostly $.9800-$1.0200. Contact: Susan Quarne - Publisher Subscriptions: $145 for U.S., second-class delivery; P.O. Box 628254, Middleton, WI 53562 IRU86ÀUVWFODVVGHOLYHU\LQFOXGLQJ&DQDGDDQG PHONE 608/831-6002 • FAX 608/288-9093 International rate to all others. Printed in U.S.A. CASEIN: Rennet $3.0150-$3.0600; Acid $3.0525-$3.1500. 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. © 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) February 3, 2017 — CHEESE MARKET NEWS® 3 MARKET INDICATORS

California Minimum Prices Released February 1, 2017 Butterfat SNF Equivalent Class 4a $ 2.4523/lb. $ 0.8141/lb. $ 15.67/cwt. Class 4b $ 2.4523/lb. $ 0.8511/lb. $ 15.99/cwt.

Class & Component Prices

January 2017 December 2016 Class III: Price $ 16.77/cwt. $ 17.40/cwt. Skim Price $ 8.22/cwt. $ 9.56/cwt. Class IV: Price $ 16.19/cwt. $ 14.97/cwt. Skim Price $ 7.62/cwt. $ 7.04/cwt. For more information please visit www.devilletechnologies.com Class II: Price $ 16.36/cwt. $ 15.26/cwt. Butterfat Price $ 2.5323/lb. $ 2.3424/lb. Component Prices: CME FUTURES for the week ended February 2, 2017 Butterfat Price $ 2.5253/lb. $ 2.3354/lb. Nonfat Solids Price $ 0.8465/lb. $ 0.7822/lb. Class III Milk* Protein Price $ 2.1768/lb. $ 2.6922/lb. Fri., Jan. 27 Mon., Jan. 30 Tues., Jan. 31 Wed., Feb. 1 Thurs., Feb. 2 Other Solids Price $ 0.2503/lb. $ 0.2063/lb. JAN17 16.75 4,250 16.74 4,249 16.75 4,231 16.77 4,535 -- -- Somatic Cell Adjustment Rate $ 0.00085/1,000 scc $ 0.00090/1,000 scc FEB17 16.62 4,221 16.56 4,237 16.71 4,156 16.74 4,104 16.99 4,069 MAR17 17.15 3,912 17.08 4,051 17.15 4,113 17.15 4,165 17.40 4,195 Product Price Averages: APR17 17.43 3,481 17.29 3,548 17.30 3,550 17.34 3,555 17.52 3,521 Butter $ 2.2568/lb. $ 2.1000/lb. MAY17 17.51 3,185 17.43 3,238 17.37 3,234 17.34 3,250 17.54 3,231 Nonfat Dry Milk $ 1.0229/lb. $ 0.9579/lb. JUN17 17.67 2,946 17.63 2,984 17.57 3,008 17.54 3,010 17.70 3,048 JUL17 17.81 1,740 17.76 1,793 17.71 1,831 17.69 1,872 17.80 1,963 Cheese $ 1.7011/lb. $ 1.7990/lb. AUG17 17.88 1,727 17.86 1,776 17.83 1,786 17.83 1,805 17.89 1,826 Dry Whey $ 0.4421/lb. $ 0.3994/lb. SEP17 17.88 1,652 17.86 1,704 17.81 1,731 17.83 1,769 17.92 1,804 OCT17 17.72 1,353 17.74 1,410 17.64 1,438 17.72 1,443 17.80 1,465 NOV17 17.60 1,380 17.60 1,424 17.60 1,441 17.65 1,442 17.66 1,449 DEC17 17.30 1,245 17.32 1,282 17.32 1,284 17.37 1,287 17.41 1,291 JAN18 16.90 251 16.95 255 16.95 255 16.95 305 16.98 323 FEB18 16.81 209 16.81 209 16.81 209 16.83 261 16.83 263 International Dairy Markets February 3, 2017 MAR18 16.71 221 16.71 221 16.71 221 16.71 271 16.71 275 Total Contracts Traded/ Western Europe Open Interest 1,116/32,228 1,749/32,845 1,354/32,960 1,135/33,706 1,942/29,367 Butter: 82 percent butterfat $4,200(-325)-$4,525(-125). Class IV Milk* Butteroil: 99 percent butterfat $4,550(+150)-$5,000(-300). Skim Milk Powder: 1.25 percent butterfat $2,150(-50)-$2,300. Fri., Jan. 27 Mon., Jan. 30 Tues., Jan. 31 Wed., Feb. 1 Thurs., Feb. 2 Whole Milk Powder: 26 percent butterfat $3,200-$3,350(-25). JAN17 16.20 381 16.20 381 16.20 381 16.19 397 -- -- FEB17 16.07 374 16.07 374 16.07 374 16.07 374 16.02 374 Whey Powder: Nonhygroscopic $900-$1,075. MAR17 16.08 375 16.08 375 16.08 373 16.08 373 15.86 373 APR17 16.06 357 16.19 357 16.26 361 16.26 361 15.92 360 Oceania MAY17 16.39 354 16.39 354 16.55 355 16.55 355 16.30 355 Butter: 82 percent butterfat $4,375-$4,475. JUN17 16.58 343 16.58 343 16.72 343 16.75 343 16.54 343 Cheddar Cheese: 39 percent maximum moisture $3,675-$3,875. JUL17 16.71 261 16.71 261 16.95 263 16.97 263 16.74 262 Skim Milk Powder: AUG17 16.92 287 16.92 287 17.06 288 17.26 286 16.97 285 1.25 percent butterfat $2,350-$2,450. SEP17 17.05 306 17.05 306 17.30 309 17.41 311 17.17 309 Whole Milk Powder: 26 percent butterfat $3,100(+50)-$3,275(-50). OCT17 17.15 284 17.15 284 17.28 284 17.42 287 17.28 288 NOV17 17.23 305 17.23 305 17.26 305 17.40 310 17.37 307 South America Total Contracts Traded/ Skim Milk Powder: 1.25 percent butterfat $2,400(-25)-$2,550(-125). Open Interest 46/4,448 0/4,448 24/4,457 50/4,510 56/4,067 Whole Milk Powder: 26 percent butterfat $2,800(+25)-$3,425. Source: Dairy Market News. Prices reported in U.S. dollars per metric ton, F.O.B. port. Cash-Settled NDM* Fri., Jan. 27 Mon., Jan. 30 Tues., Jan. 31 Wed., Feb. 1 Thurs., Feb. 2

JAN17 102.075 887 102.100 892 102.100 892 102.290 945 -- -- FEB17 101.050 896 101.025 898 101.000 905 101.575 904 100.625 899 National Dairy Products Sales Report MAR17 100.000 976 100.025 976 100.375 976 101.175 985 99.000 988 APR17 101.625 755 101.625 755 102.000 755 103.000 790 100.400 764 For the week ended: 1/28/17 1/21/17 1/14/17 1/7/17 MAY17 104.400 644 104.400 644 104.625 644 105.450 652 102.550 690 JUN17 106.500 647 106.500 647 107.000 647 107.525 660 105.250 703 Cheese 40-lb. Blocks: JUL17 107.925 425 107.925 425 109.000 429 110.000 457 107.450 486 Average price1 $1.7199 *$1.7093 *$1.7045 *$1.7430 AUG17 110.250 354 110.250 354 111.675 357 112.000 384 109.925 403 SEP17 112.000 317 113.000 326 Sales volume2 13,260,397 *13,571,697 *15,997,170 14,397,358 112.000 317 113.975 341 111.925 364 Cheese 500-lb. Barrels: Total Contracts Traded/ Open Interest 29/7,524 57/7,547 Average price1 $1.7314 *$1.7325 *$1.7193 *$1.7453 383/7,517 377/7,757 708/6,948 Adj. price to 38% moisture $1.6500 *$1.6524 *$1.6393 *$1.6589 Cash-Settled Butter* Sales volume2 11,660,026 *11,723,737 *13,702,669 9,571,316 Moisture content 34.94 *34.99 34.97 34.77 Fri., Jan. 27 Mon., Jan. 30 Tues., Jan. 31 Wed., Feb. 1 Thurs., Feb. 2 Butter: JAN17 225.000 882 225.000 882 225.000 882 225.680 1,075 -- -- Average price1 $2.2557 $2.2711 $2.2330 $2.2737 FEB17 224.475 856 224.975 858 224.975 858 222.025 854 222.025 854 MAR17 223.000 774 226.350 772 227.000 783 226.750 786 221.750 785 2 4,144,604 3,198,101 4,350,861 3,721,184 Sales volume APR17 225.075 653 227.600 658 228.000 664 227.700 669 224.700 674 Nonfat Dry Milk: MAY17 225.550 472 228.025 505 228.925 506 228.250 555 225.500 561 Average price1 $1.0218 *$1.0287 $1.0242 $1.0133 JUN17 226.300 358 228.175 371 228.575 376 228.500 386 226.975 415 Sales volume2 14,890,456 *18,596,389 16,088,314 11,746,311 JUL17 226.175 234 228.025 236 228.525 236 229.500 242 226.025 264 227 Dry Whey: AUG17 226.625 221 228.025 223 228.025 223 230.000 226.375 251 SEP17 226.625 208 230.950 209 230.950 209 230.950 213 227.450 250 1 $0.4593 $0.4454 $0.4254 Average price *$0.4370 OCT17 226.000 236 229.000 237 229.000 237 229.000 243 228.900 248 2 5,762,338 *8,338,006 *7,436,009 5,360,515 Sales volume Total Contracts Traded/ Open Interest 27/5,335 98/5,405 40/5,426 141/5,703 187/4,755 */Revised. 1/Prices weighted by volumes reported. 2/Sales as reported by participating manufacturers. Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. Reported in pounds. More information is available by calling AMS at 202-720-4392. *Total Contracts Traded/Open Interest reflect additional months not included in this chart.

DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions. © 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 4 CHEESE MARKET NEWS® — February 3, 2017 GUEST COLUMNIST CMN Exclusive!

grow. It cannot be ignored that Chinese of what is the most effective way to cheese imports January-October 2016 conserve current business and look for Perspective: increased 31 percent year-over-year, opportunities to create value. Dairy Markets especially with an increasing number Done poorly, hedging in commodi- of foreign cheese companies entering ties often overwhelms the logic and Aishwarya D. Govil is a risk into the Chinese market. However, due can destroy more value than was management advisor at Rice to the benefi cial tariff rate between originally at risk. But when done well, Dairy,* a boutique brokerage fi rm China and New Zealand/Australia, the the fi nancial, strategic and operational in Chicago that specializes in dairy United States lost ground. benefi ts of hedging can go beyond and markets at dairy’s periphery. He With increased globalization and merely avoiding fi nancial distress; it contributes this column exclusively international trade, everything is con- can open up options to preserve and for Cheese Market News®. nected. An earthquake in New Zealand create value as well. not only affects the dairy farmers of “Even a correct decision is that country, but it affects dairy farm- wrong when it was taken too late.” ers everywhere in the world. If New — Lee Iacocca CMN Zealand is unable to service the Chinese demand for milk powder, the European Yuyang Zhang contributed to this Union and United States will get that article. business. This means more exports than Dairy market volatility and usual and less product for domestic The views expressed by CMN’s guest consumption. As a result, people will columnists are their own opinions fundamental uncertainty be willing to pay more and prices will and do not necessarily refl ect those of move higher. Cheese Market News®. Over the course of the last fi ve years, tion in other regions. The United States withdrawing from I have spent a great deal of time try- When it comes to 2017 milk produc- the Trans-Pacifi c Partnership may have *The risk of loss trading commodity ing to understand the unpredictable tion, we will need to see if EU milk an effect on the markets as well. We futures and options can be substantial. dairy market. As I take the next step production rebounds after producers might see a short-term drop in trade Investors should carefully consider in my career, I wanted to take this stop being rewarded for delivering volumes as the markets adjust to the the inherent risks in light of their opportunity to write this article with less milk and if the Dutch will remove new reality and fi gure out new ways to fi nancial condition. The information Yuyang Zhang, my fellow quantitative 120,000 cows to meet environmental move product. contained herein has been obtained analyst at Rice Dairy, and pass on to phosphate and nitrogen limits. Also, This brings us to making the argu- from sources believed to be reliable; her the baton of being the go-to quant weather is unpredictable but infl u- ment for using risk management. The however, no independent verifi cation analyst at Rice Dairy. I truly believe ences production to a great extent. In purpose of effective risk management has been made. Information contained she will continue adding value to the New Zealand, for example, the region is creating value for the business and herein is strictly the opinion of its au- industry with her skill set. I am sad to went from a drought in January 2015 providing a sense of stability in these thor and not necessarily of Rice Dairy leave the industry but thankful for all to heavy, unexpected rains in October times of uncertainty. Whenever there and is intended to be a solicitation. it has taught me. I also look forward to 2016, which contributed to the price is a disruption in seasonal patterns, we Past performance is not indicative of keeping in touch and hope that all our volatility, especially for milk powders. want to be on our toes and be aware future results. friendships outlast our professional From an inventory standpoint, the lives. — Ash European Union started to release its milk powder intervention stocks NEWS/BUSINESS The industry is evolving and growing halfway through December 2016 but more globalized by the day. 2016 has with few buyers meeting the Commis- been a year of volatility as we saw the sion’s minimum price, only 40 metric cheese block trading all the way from tons sold in the fi rst auction and none Irish dairy company Ornua acquires $1.2800 on May 13 to $1.9425 on Nov. sold in the second auction. If the EU F.J. Need Ltd. cheese ingredient company 10, a move of 66.25 cents (equivalent aggressively unloads its stocks, this of $6.50-$7.00/hundredweight in Class might put downward pressure on nonfat DUBLIN — Irish dairy company rapidly-growing foodservice market III terms). dry milk prices. Ornua recently announced it has for cheese ingredients both in the UK It is next to impossible to predict Meanwhile, China fi lled its annual signed an agreement to acquire F.J. and in international markets. This po- where prices will be in 2017. But what dairy products tariff quota with New Need Ltd., a Cheshire, England-based tential for expansion into new sectors, we can do is craft an opinion about the Zealand by Jan. 11, 2017, which includes cheese ingredients company. Estab- including leveraging Ornua’s existing general direction of the markets, keep whole milk powder and skim milk lished more than 40 years ago, the export market, is a key benefi t in the an eye on the fundamental uncertainties powder. There is currently less demand family-run cheese company includes transaction, Ornua says. that might move the price, and utilize in the dairy spot market, especially a cheese cutting, grating and slic- “This acquisition will be another the right fi nancial tools to minimize the since Chinese New Year holiday orders ing facility, two cheese brands and important milestone in Ornua’s risks. Our goal here is to look at the dairy have already been met and business in a distribution fl eet. Ornua says this growth as a global supplier of quality markets from a global standpoint and the country is usually slow from mid- acquisition is central to its strategy dairy products,” says Kevin Lane, CEO, draw some conclusions from the facts. January to mid-February. But going of further strengthening its core busi- Ornua. “We are buying an excellent Theoretically and intuitively, there forward, it is still too early to say what nesses in Germany, North America family dairy business which allows is an inverse relationship between the demand coming out of China will and the United Kingdom (UK), and it us to signifi cantly strengthen our supply and prices. In the middle of be like for 2017. It won’t be until after also will strengthen Ornua’s UK busi- presence in the UK ingredients sec- last year, we saw production in the the Chinese New Year and the Lantern ness capabilities in the post-Brexit tor. The complementary nature of our four key global dairy regions fall be- Festival that the picture will become environment. customer bases and the potential to low one year ago. The removal of the clearer. It is something to keep an eye F.J. Need supplies a wide range further scale the business makes this European Union (EU) milk production on because Chinese demand is a large of British and Irish cheese ingre- a strong fi t for Ornua.” quota in April 2015 initially caused an contributing factor to dairy prices. dients to the foodservice and food Completion of the acquisition is oversupply of milk but then we saw a It is often the case that the effect manufacturing sectors. Ornua has subject to UK competition approval. gradual decrease all the way to the end of new demand in the markets has a been a supplier of Irish cheese to The F.J. Need acquisition will be of 2016, with EU milk production down bigger psychological impact on prices F.J. Need for many years and says the latest in a series of investments by 3.6 percent in November. According than supply does. Average monthly the acquisition will strengthen this Ornua targeting new routes to market to the most recent data, New Zealand per-capita cheese consumption in important supply channel. F.J. Need’s for Irish dairy products. Ornua notes milk collection continues to struggle. the United States has grown from 2.5 cheese production facility currently in the last two years, it has invested Australia milk deliveries were down pounds per month in 2000 to an esti- produces 16,000 metric tons per year. in acquisitions and signifi cant capital 6.3 percent in November. Although U.S. mated 3.14 pounds in 2016. That is an Ornua says it believes that there is expenditure in Africa, China, Ger- milk production has kept growing, it increase of 25 percent. With an increas- signifi cant potential to expand this many, Ireland, Saudi Arabia, Spain, hasn’t been enough to offset the reduc- ing population, that number will only capacity to take advantage of the the UK and the United States. CMN © 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) February 3, 2017 — CHEESE MARKET NEWS® 5 NEWS/BUSINESS

Nestle USA to move headquarters to Virginia Rewarding partnership ROSSLYN, Va. — Nestle USA, a subsidiary home to Nestle USA’s corporate functions of Nestle S.A., announced this week that it and its Beverage and Confections & Global will transition its corporate headquarters Foods divisions, as well as its expanding from Glendale, California, to Arlington eBusiness team, Center for Marketing Ex- County, Virginia, starting later this year. cellence and team of nutrition experts. The The move marks an important mile- move will commence later this year, with stone in the company’s history and signals completion expected by the end of 2018. Nestle’s commitment to future investment In addition to relocating its U.S. corpo- and growth in the United States, according rate headquarters, Nestle USA will move to Nestle USA. The company says it expects its Technical & Production organization to bring about 750 jobs to the Washing D.C. and Supply Chain teams to join the Nestle area with this transition. Prepared Foods, Pizza, Baking and Profes- “With the food and beverage landscape sional businesses in Solon, Ohio. The com- continuing to transform at a rapid pace, pany has established Solon as its Center of Nestle has been innovating and making Excellence for its frozen and chilled foods strategic changes to the business over the businesses and as the site for its $50 million past fi ve years. This move is the next step investment in the global Nestle Develop- Photo courtesy of Kelley Supply Inc. in our evolution,” says Paul Grimwood, ment Center, the company says. COLBY, Wis. — Kelley Supply Inc. recently named Chr. Hansen its 2016 Supplier of chairman and CEO, Nestle USA. “We care- Additionally, Nestle’s United States IT the Year. Kelley Supply says it selected Chr. Hansen because of Chr. Hansen’s efforts fully considered a number of options and organization will centralize in St. Louis, to build a partnership based on technical support, the ability to work together to test Arlington hits all the marks.” which also is home to Nestle Purina Pet- products and the desire to bring value to customers. The partnership has enabled Currently, 75 percent of Nestle USA’s Care’s U.S. headquarters. This centraliza- both companies to grow and be in a unique position for future growth, the company factories and 85 percent of its top customers tion is expected to help drive effi ciency adds. Pictured are (left to right): Jessica Lindberg and Daryl Spors, Kelley Supply, are located in the eastern half of the United across Nestle’s U.S. operations. As the presenting the 2016 Supplier of the Year award to Jeremy Huston of Chr. Hansen. CMN States, and 80 percent of the company’s company looks to the future, it says it will products are sold east of the Mississippi continue to demonstrate its commitment to River. With a majority of key regulatory the United States as a key growth market. groups and non-government organizations Nestle in the United States consists of NMPF praises U.S. House bill prompting pertinent to the business located in or eight main businesses: Nestle USA, Nestle FDA enforcement of dairy labeling terms near the Washington D.C. area, the move is Purina PetCare Co., Nestle Waters North expected to further facilitate conversations America, Nestle Nutrition, Nestle Profes- WASHINGTON — The National Milk “Real milk has been recognized for about bringing the best foods and bever- sional, Nespresso, Nestle Skin Health and Producers Federation (NMPF) this week decades for its important nutritional ages to U.S. consumers, the company says. Nestle Health Science. Together, these com- endorsed new legislation introduced benefi ts,” says NMPF President and CEO Nestle worked closely with Virginia panies operate in more than 120 locations in the House of Representatives that Jim Mulhern. “These imposter products leaders to confi rm the move. Located in 47 states and employ more than 51,000 would prompt the enforcement of dairy almost always use dairy imagery, similar at 1812 North Moore Street in Rosslyn, people. In the United States, Nestle product labeling terms. packaging and names, but they never Virginia, part of Arlington County, the sales topped $26 billion in 2015, making it The House bill would compel FDA match the nutritional benefi ts found company’s new headquarters will become the largest Nestle market in the world. CMN to take action against misbranded, in milk. This House legislation sends a plant-based beverages that are inap- clear message that plant-based foods Fromi USA issues recall of two cheeses propriately using dairy terms, especially should not be able to create and use “milk.” It was introduced by Reps. Pe- nomenclature that is in confl ict with NEW YORK — Fromi USA is recalling date of Jan. 25, 2017, Feb. 22, 2017, or ter Welch, D-Vt., Sean Duffy, R-Wis., existing federal standards of identity seven cases of Soureliette cheese and Aug. 2, 2017, stamped on the top, while Mike Simpson, R-Idaho, Joe Courtney, requiring the presence of real milk.” two cases of Tomme Brebis Fedou, as the Tomme Brebis Fedou comes in a D-Conn., David Valadao, R-Calif., and Though existing federal policy is they have the potential to be contami- 3-pound box marked with an expiration Suzan DelBene, D-Wash. clear on this subject, FDA has not nated with Listeria monocytogenes. date of Feb. 22, 2017, stamped on the top. The measure requires FDA to issue challenged the labeling practices of The recalled Tomme Brebis Fedou Consumers who have purchased guidance for nationwide enforcement of imitators made out of nuts, beans, seeds cheese and Soureliette were distributed these products are urged to return them these defi nitions within 90 days. It would and grains, which have been branding to California, New York and Massachu- to the place of purchase for a full refund. also require FDA to report to Congress themselves using dairy-specifi c terms setts through retail stores, according to Listeria monocytogenes is an two years after the bill’s enactment to for the past two decades, according to a statement on FDA’s website. organism that can cause serious and hold the agency to its obligations. NMPF. The potential for contamination sometimes fatal infections in young The House bill mirrors Sen. Tammy The lack of enforcement of proper was found after routine testing by a children, frail or elderly people, and Baldwin’s, D-Wis., DAIRY PRIDE Act, dairy terms in the U.S. market differs foreign supplier revealed the presence others with weakened immune systems. introduced two weeks ago in the Senate. from how the matter is handled in other of Listeria monocytogenes in 3-pound No illnesses have been reported to That bill garnered praise from NMPF and nations. While the term “almond milk” packages of Tomme Brebis Fedou and date in connection with this problem, the International Dairy Foods Associa- is seen on products sold in the United Soureliette, the statement says. the statement adds. tion. (See “Dairy groups praise bill on States, it is absent from the same brand The Soureliette product comes in a For questions, contact the milk labeling standards” in the Jan. of almond beverage sold in Canada and 3-pound box marked with an expiration company at 718-412-0498. CMN 13, 2017, issue of Cheese Market News.) the United Kingdom, NMPF says. CMN

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For more information please visit www.urschel.com © 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 6 CHEESE MARKET NEWS® — February 3, 2017

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CHINA Bongrain Group (now Savencia) as the fi rst manufacturer of European Continued from page 1 and American cheese in China at the time. Currently, Bongrain (Tianjin) Situation 2016, total cheese consump- Foods Co. Ltd. has more than a dozen tion across China is estimated at 75,000 lines with more than 50 varieties, metric tons a year, or 0.1 kilogram per sold mainly under its popular Milkana capita. Butter consumption is only brand. Milkana products are sold both slightly more, while milk consumption is to consumers at retail and to domestic much more prevalent at 18.7 kilograms food companies. per capita. Bongrain has maintained its lead- Processed cheese slices by far are ing position through effective promo- the most consumed type of cheese in tional campaigns, helping to establish China, followed by the categories “other stronger recognition among Chinese non-specifi ed” and “processed cheese consumers and drawing attention to other” according to USDEC data. USDEC the wide variety of products it offers, projects consumption of most cheese Euromonitor says. The report notes that types, especially processed cheese another Chinese cheese manufacturer, slices, to grow through 2020. Milkland (Tinajin) Foods Co. Ltd., also Photo courtesy of Yum China “Growth is driven mainly by eco- saw an increase in value sales in 2016, CHEESE ON THE MENU — The rising popularity of pizza and other Western-style restaurants has nomic growth and the westernization of especially in Mozzarella. been responsible for most of the increased consumption of cheese in China. Yum! Brands, which Chinese diets,” McNeil says. “However, Euromonitor says robust volume also operates KFC and Pizza Hut restaurants in China and around the world, just announced China’s the Chinese are still eating Chinese and value growth for cheese in China fi rst Taco Bell restaurant in Shanghai. food. They still maintain mostly a Chi- can be attributed to an initially small nese diet, but if a small proportion of consumer base and the developing habit 2015 Hoogwegt report. projected all cheese imports to China people start eating Western foods, it of consuming cheese, especially among “Leading Chinese dairy companies would reach 95,000 metric tons by makes a big difference.” the youngest consumers. have large stakes in the processed 2020, but this number now looks to have • Cheese production “Cheese is perceived to contain more cheese market, but there is little or been reached in 2016. The compound According to USDEC’s 2015 esti- protein and calcium than drinking milk, no local natural cheese production,” annual growth rate (CAGR) of cheese mates, China produces about 25,000 met- thus more and more Chinese, especially Hoogwegt says, adding that industry imports since 2010 was 27 percent, ric tons of cheese a year, and most of this younger parents, are tending to be more estimates suggest that domestic produc- McNeil says. is processed cheese slices for foodservice open to cheese consumption than their tion of processed cheese has not kept “If imports continued at this 27-per- as well as other processed cheeses. There own parents’ generation,” Euromonitor pace with cheese market growth. “The cent CAGR, it could reach 250,000 are four cheese processing companies in reports. “According to trade sources, cheese consumption mix in China is metric tons in 2020,” McNeil notes. China that make most of the processed cheese is being added to school lunch also dominated by processed cheeses, “But with supply and access limitations cheese. USDEC projects that by 2020, menus in many primary schools in which are more suited to the local pal- we are taking a more conservative ap- there will be about 37,000 metric tons Shanghai. In addition, the popular- ate. Chinese consumers, in general, do proach estimating imported volumes of of cheese production in China. ity of cheesecake is growing among not favor the strong tastes and scents between 150,000 metric tons to 200,000 Bongrain (Tianjin) Foods Co. Ltd. younger consumers, with many young of many natural cheese varieties. Fur- metric tons in 2020.” is the leading cheese company in women starting to make cheesecake thermore, processed cheese is easier The top types of cheese imported in China with a 25 percent value share themselves, boosting the consumption to handle when used in hamburger and China include Pizza Mozzarella, regular and the largest increase in value sales of cheese.” pizza preparation.” cream cheese, Cheddar for processing in 2016, according to a September • Import opportunity McNeil notes that China’s cheese and processed cream cheese, according 2016 Euromonitor report, Cheese in China’s cheese imports represent imports are growing faster than US- to USDEC’s 2015 Cheese Database. China. This company was established about a third of the country’s total DEC’s current projections. A Cheese Cream cheese and pizza cheese in Tianjin, China, in 1997 by France market requirements, according to a Database USDEC compiled in 2015 (grated Mozzarella) are the main types of cheese the United States exports to China, though U.S. cheese exports are relatively small compared to other dairy exports. According to USDEC, total U.S. dairy exports to China in 2016 are estimated to be about 230,000 metric tons. In 2015, whey products YOURYOUR PPREMIERREMIER SSOURCEOURCE FFOROR represented 77 percent of all U.S. dairy exported to China, while milk powders Quality Ingredients & represented 16 percent. Cheese repre- sented 6 percent. Functional Dairy Products People in China’s trade industry view U.S. cheese products favorably, espe- Value Specializing in Non GMO WPC 80 product cially cream cheese and pizza cheese, Added (hormone free & grass fed) McNeil says, though consumers are not Over Two Decades of Experience! as familiar with U.S. cheese since they • Organic Nonfat Dry Milk & Butter • Milk Protein Concentrates (40%-80%) consume it mostly through foodservice • Acid Casein • Milk Protein Isolates and not retail. • Butter (Imported & Domestic) • Rennet Casein “We’ve conducted numerous trade • Caseinates (Sodium, Calcium, Potassium) • Whey Protein Concentrates (34%-80%) missions and one-on-one meetings • Dry Blends (Powder & Agglomeration) • Whey Protein Isolate • Lactalbumin between suppliers and distributors, processors, foodservice and retail industries,” she says. “We partici- pate in numerous trade shows every year. A lot of this business is well- established — our industry knows INTEGRITY • DEDICATION • SERVICE the key players.” One challenge to exporting cheese [email protected] • www.pazingredients.com • 949.378.0815 and other dairy products to China is For more information please visit www.pazingredients.com Turn to EXPORTS, page 7 a © 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) February 3, 2017 — CHEESE MARKET NEWS® 7

INA CH PASSP RT TO CHEESE

EXPORTS “(U.S. dairy imports) often feed into • Partners in dairy demand for cheese, according to market the domestic dairy industry as ingre- While the United States does not research fi rms. Continued from page 6 dients which is a highly competitive have a trade partnership with China, “The increasing penetration of market, so you will see from the numbers there are plenty of business partner- Western foodservice outlets, such as tight competition — especially against that we are the No. 3 import market for ships on a smaller scale. Among these, McDonald’s and Pizza Hut, provides Australia and New Zealand. New Zea- China but lag far behind New Zealand the U.S. dairy industry has formed a the opportunity for Chinese people to land’s Fonterra, for example, boasts and Australia in terms of volumes,” partnership with Yum! Brands to help taste cheese, and many have developed that more than half of all pizzas in McNeil says, adding that another key bring more dairy into its restaurants a taste for it,” Euromonitor says. China are topped with Fonterra cheese, challenge is a duty disadvantage vs. in China as well as other international Hoogwegt also notes that while the and it is in the process of developing New Zealand and Australia. locations. (See “Dairy checkoff partners fl uctuation in milk powder demand its own farming hub in China that will “We do not have a trade agreement with Yum! to grow sales overseas” in from China has been well-chronicled eventually milk about 15,000 cows a with China,” she says, adding that the the Nov. 4, 2016, issue of Cheese Market over the past years, the steady build year. China imports the most cheese United States pays a 12 percent duty on News.) Initially, the dairy checkoff is in cheese imports has gone relatively from New Zealand (US$161.7 million cheese exported to China. “New Zealand working to grow U.S. dairy sales by co- unnoticed. The report adds that Yum! worth in 2015), followed by Australia cheese enters China duty free, and Aus- leading a pilot program with Pizza Hut Brands is growing its current network (US$64.8 million) and the United States tralia currently pays 10.8 percent which to reach customers in the Asia Pacifi c, of restaurants in China by 700-800 per (US$53.4 million). will eventually go down to 0 percent.” where the company sources 100 percent year; McDonalds and Subway plan to of its String cheese used in stuffed crust add several hundred stores per year pizzas from the United States. combined; and the large Chinese NEWS/BUSINESS Yum! Brands also was in the news fast-food chains that offer cheese- earlier this year when it announced the friendly options also are planning opening of its fi rst Taco Bell restaurant future growth. Diaz Foods buys drinkable yogurt brand Frutel in China, which will include a number “The steady expansion of fast-food of items with cheese and cheese sauces. restaurants across China will con- ATLANTA — Diaz Foods, a distribu- frozen products from around the The menu will feature the brand’s fa- tinue to create growing demand for tor of specialty foods, has acquired world to 25 states and more than vorites adapted to local tastes, such as processed cheese product,” Hoogwegt Frutel brand from Origin Food Group 6,000 customers. In addition, Diaz the Shrimp and Avocado Burrito. The reports. “Eventually Chinese palates in Statesville, North Carolina. Foods manufactures, markets and Crunchy Taco Supreme will be loaded will also develop, increasing demand Frutel is the second brand that distributes its own brand of products, with Taco Bell’s signature Nacho Cheese for natural cheeses. This will ensure has been acquired by Diaz Foods in according to the company. Sauce, and the Volcano Chicken Burrito an even greater reach for cheese less than two years, according to Diaz “Since the perceived market lead- will feature spicy Sriracha sauce. products across all market channels Foods. Diaz Foods will leverage its ers are shifting to a world of smooth- All this will serve to further fuel the over the next decade.” CMN 25-state distribution network to grow ies and creating a void in the real the demand for Frutel, the company drinkable yogurt space, we saw an adds. opportunity in Frutel,” says Antonio “The Frutel brand represents an Casas, vice president of marketing, opportunity for Diaz Foods to further Diaz Foods. “While others continue expand its portfolio of products for to sell ‘smoothie-style yogurt mixes,’ our customers,” says Eric Newberg, we are marketing a drinkable yogurt CFO, Diaz Foods. “This 100-percent made with real milk and fruit. Frutel yogurt drink is a high-quality product is exactly that, a real drinkable yo- with signifi cant opportunity to expand gurt that is a meal replacement, an beyond its North Carolina foot print.” energy booster and nutritious drink Diaz Foods was founded in 1980 all in one.” and is a privately-owned company. For more information, vis- It distributes dry, refrigerated and it www.diazfoods.com. CMN

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Total conventional dairy ads up 18 percent Kathleen Glass named 2017 NCI Laureate WASHINGTON — The number of total 2-pound cheese blocks had a weighted ORLANDO, Fla. — The National to the development and growth of the conventional dairy advertisements last average advertised price of $6.20, up Cheese Institute (NCI) bestowed its cheese industry. The award recipient is week increased 18 percent from the prior from $4.99 one week earlier but down highest honor, the NCI Laureate Award, selected by a panel of industry profes- week, says USDA’s Agricultural Market- from $6.29 one year ago. on Kathleen Glass, Ph.D., a senior scien- sionals based on the nominee’s overall ing Service (AMS) in its latest weekly AMS says natural varieties of 8-ounce tist and associate director at the Food career achievements. National Dairy Retail Report released cheese shreds last week had a weighted Research Institute of the University of Glass’s research focuses on improv- Jan. 27. average advertised price of $2.19, down Wisconsin-Madison. ing food safety by eliminating or control- AMS says national conventional va- from $2.22 one week earlier and $2.34 NCI Chairman Ron Dunford, president ling the growth of pathogenic bacteria, rieties of 8-ounce natural cheese blocks one year earlier, while 1-pound cheese of Schreiber U.S., Schreiber Foods Inc., Dunford notes. last week had a weighted average ad- shreds had a weighted average adver- presented the award to Glass this week “The findings of her work have vertised price of $2.05, down from $2.20 tised price of $3.52, down from $3.97 one at the International Dairy Foods Associa- infl uenced changes to the Pasteur- one week earlier and one year earlier. week earlier and $4.99 one year earlier. tion’s Dairy Forum in Orlando, Florida. ized Milk Ordinance and are used by Natural varieties of 1-pound cheese Meanwhile, national conventional Award recipients are business or product developers and food safety blocks last week had a weighted aver- butter in 1-pound packs last week academic leaders who have made professionals in the cheese and broader age advertised price of $4.36, up from had a weighted average advertised signifi cant, prolonged contributions dairy industries,” he says. CMN $4.28 one week earlier but down from price of $3.31, up from $3.25 one week $4.67 one year earlier, AMS says, while earlier and $2.92 one year ago. CMN Tipton honored with Soaring Eagle Award ORLANDO, Fla. — In recognition of the National Cheese Institute, In- her 35 years of leadership in the dairy ternational Ice Cream Associa- DairyInsider.net industry, the International Dairy Foods tion and Milk Industry Foundation. Association (IDFA) honored Connie Tip- Tipton led successful legislative ton, the association’s recently retired campaigns to lessen government in- president and CEO, with the Soaring volvement in regulations that reduce Eagle Award this week at the Dairy dairy product marketability, assisted in Forum in Orlando, Florida. passing legislation to create the famous A Smarter Way To Connect The Soaring Eagle Award rec- “milk mustache” campaign and helped ognizes individuals who have pro- to launch the Capitol Hill Ice Cream vided exemplary leadership to IDFA Party. She served as president and and its constituent organizations, CEO of IDFA from 2004 to 2016. CMN • SHARE news and • BUY/SELL goods job openings and services MMPA awards 10 scholarships to MSU students • NETWORK with • PROMOTE NOVI, Mich. — The Michigan Milk industry and letters of recommenda- industry professionalsonals youryour businessbusines Producers Association (MMPA) tion. annually sponsors scholarships for For the 2016-2017 academic year, • SURVEY the industryustry MMPA members, their children and MMPA awarded 10 scholarships, total-

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INTERESTING STUDY THAT FOOD AND BEVERAGE COMPANIES SHOULD TAKE A LOOK AT IN ENGAGING WITH MILLENNIALS. FOUR DISTINCTDISTI SEGMENTS APPEARFOOD AND TO MAKEBEVERAGE UP THE COMPA GROUP. NCT SEGMENTS APPEAR TO MAKE UP THE GROUP.NIES SHOULD TAKE A LOOK 123 MEMBERS ONLONLINE GenerationWhy, a AT IN ENGAGING WITH research studystudy conducteconducted by Ipso INE beverage industry decisi d by Ipsoss andan BuzzFeed and commissioned on-mn-makers and influen d BuzzFeed and commissioned by akers and influencers. “Unti“Until now, many studies have madeb ysweeping the Corn generalizationsRefinersRefine Associat about millennial l now, many studies have mad rs Association,ciaticiatiociatioatatiotitio during a we e sweeping general ondnn, durddurinuringuurriinngng a webcastbcast attended by food and izationioononsnsas a by food and about millennmillenmillellennnnials.nni s. This study picks picks … More State University. ogy, the program delivers innovative,

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Dairies, Inc CHECK OUT FACE BOOK FOR OUR FREE SWEEPSTAKES. IT IS FREE TO JOIN AND WE ARE GIVING OUR The scholarship fund aims to assist educational programs that develop WINNERS FLAT SCREEN SAMSAMSUNG T.V.’S OUR FREE SWEEPSTAKES. SUNG T.V.’S Dairy, Inc. Wed at 12:08 PM - … More IT IS FREE TO JOIN AND LIke - Comment - Sha WE ARE GIVING O re GGO OOUROUURUR ALAN GIOVANI LIKES THIS.

Jim Wall POSTED A NEW CLASSIFICLASSIFIED LISTING: WOW HIRING FOR ACCOUNT MANAGERMANAGED LISTING: FUNCTIONAL AREA: ER Sales Industry: Third Party POSITION TYPE: LOCATION: Full-time POSITION: Account Manager Appleton, WI … More Account Manager

Mon at 7:15 AM - LIke - Comment - Share young students pursuing a career in career-ready graduates through in- DAIRIES, INC AND WOW LOGISTICS LIKES THIS. HOWARD LEITNER IT EXCITING TO THINK WWHAT THIS SOCIAL MEDIA SITE COULD MEAN TO THE DAIRY INDUSTRY Mon at 9:18 AM - HAT THIS SOCIAL MEDIA SI LIke - Comment - Share TE COULD MEAN TO T OOT TTHTHEHEH EDEDAIE DAIDADA RYR ININDUSTRYINDNDUSTND TRY the dairy industry, according to MMPA. tensive, practical learning and skill Scholarships are awarded based on enhancement. Students in the dairy For more information please visit www.dairyinsider.net academics, involvement in the dairy management program, advised by Dr. Joe Domecq, undergo a two-year, hands-on training program for careers in the dairy industry. The following students received an MMPA scholarship: Second-year scholarships • Shelby Berens from Holland, Michigan. •Rachel Ekkel from Fremont, Michigan. • Evelyn Okkema from Blanchard, Michigan. Second-year employee scholarships • Zeke Breuninger from Dexter, Michigan. • Seth Hulst from Coopersville, Michigan. • Mason Smith, a native of Homer, Michigan. First-year scholarships • Cameron Cook from Pewamo, Michigan. •Morgan Luoma from East Leroy, Michigan. • Casey Tebos from Falmouth, Michigan. First-year employee scholarship • Hope McAlvey from Car- For more information please visit www.ivarsoninc.com son City, Michigan. CMN © 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) February 3, 2017 — CHEESE MARKET NEWS® 9 NEWS/BUSINESS

TRADE of State Departments of Agriculture reach has put American farmers at a European Union, Brazil, Argentina and (NASDA). global disadvantage. U.S. agriculture Vietnam, the letter notes. Continued from page 1 “In the current trade climate continues to lose out to our foreign The letter urges Trump and Pence across North America, it is foolhardy competitors, and our net sales have not to take steps to reverse progress “[An existing provincial] program has for Canada to continue provoking the been steadily declining since 2009.” made in normalizing relations with already cost U.S. companies tens of United States with a course of action Because of trade restrictions, the Cuba. millions of dollars in exports, thereby that so blatantly violates our trade United States has fallen from its posi- “It’s time to put the 17 million Amer- harming the dairy farmers, dairy plant agreements,” says Jim Mulhern, presi- tion as the No. 1 supplier of agricultural ican jobs associated with agriculture employees and rural communities that dent and CEO, NMPF. “We need our products to Cuba from 2002 to 2012 ahead of a few hardline politicians in depend on the benefi ts those foreign nation’s governors to join in our call to now the No. 5 supplier, after the Washington,” the letter concludes. CMN sales bring.” for Canada to step back from the brink Beginning this month, Canada is of what it is about to do and take steps poised to expand the product scope of to remind Canada how critical trade is CLASSIFIED that provincial program by instituting to its own interests, as well.” it nationally. U.S. interests also say Matt McKnight, acting chief op- ADVERTISING Canada intends to disrupt skim milk erating offi cer of USDEC, adds that powder markets around the world by despite Canada’s efforts to distance using the new program to dump excess itself from the administration’s focus milk powder on global markets. on enforcement and improving how • EQUIPMENT 1 • EQUIPMENT 1 The 17 dairy companies sent the NAFTA functions, it is Canada — not letter to governors in states with sig- Mexico — that has time and again nifi cant numbers of dairy farms and chosen to disregard its dairy trade dairy processing companies because commitments to the United States and of the damage Canada’s policies have intentionally dismiss serious concerns Single or multi-wire low had already or are poised to have on from the United States about the cost cutting solution. these farms and companies, as well as impact its dairy policies are having their employees and many communi- on trade. Vertical wire cutter for wheels, loafs or blocks. ties. The letter urges state offi cials to “Canada should take a page out

“consider all tools at their disposal to of Mexico’s book and hold up its end Horizontal / vertical wire cutter for wheels, loafs or blocks. ensure Canada understands the seri- of the bargain to us on dairy trade,” ousness of this issue.” The states are McKnight says. Hard cheese wheel scoring machine. Horizontal wire cutter for Arizona, California, Colorado, Idaho, “The U.S. dairy industry is united soft or hard cheeses. Vertical blade cutter for FoodTools wire & semi-soft or hard cheeses. Iowa, Indiana, Kansas, Maryland, on this issue because these policies and blade cheese cutters, Massachusetts, Michigan, Minnesota, incentives severely hinder U.S. exports designed & built to meet the Missouri, Montana, Nebraska, New to Canada and threaten our ability to dairy industry standards. Mexico, New York, North Dakota, Ohio, remain competitive in markets around Pennsylvania, South Dakota, Texas, the world,” adds Michael Dykes, presi- 800-644-2377 Visit us at www.foodtools.com Vermont, Virginia, Washington and dent and CEO, IDFA. Wisconsin. Meanwhile, more than 100 national For more information please visit www.foodtools.com and state agriculture and farm-related organizations also recently asked “We need our nation’s Trump and Vice President Mike Pence to prioritize the removal of private governors to join in our fi nancing and trade barriers for agri- call for Canada to step cultural commodity exports to Cuba. “Your support in removing out- back from the brink of dated fi nancing and trade barriers what it is about to do for exporting agricultural products and equipment to our island neighbor and take steps to could signifi cantly strengthen a U.S. remind Canada how industry which supports 17 million critical trade is to its jobs across the country and can provide the Cuban people with high-quality, own interests, as well.” American-grown food,” the groups and For more information please visit www.ullmers-dairyequipment.com companies say in the letter signed by, Jim Mulhern among others, NMPF, the American • CHEESE/DAIRY 12 • CHEESE/DAIRY 12 NATIONAL MILK Farm Bureau Federation, the National PRODUCERS FEDERATION Farmers Union and the National Coun- cil of Farmer Cooperatives. FOR SALE: Cuba imports nearly 80 percent GOT CHEESE? 5 YEAR OLD Last month, U.S. dairy organiza- of its food to feed a population of 11 We purchase scrap cheese WHITE CHEDDAR tions and state departments of agricul- million people and upwards of 3 mil- (fish(fish bait,bait, floorfloor sweeps, etc.)etc.) ture across the country sent a similar lion tourists annually, the letter notes. forfor feed.feed. WeWe cancan pickpick upup onon aa • Produced by Master letter to President Donald Trump Cuba’s $2 billion agriculture import spot, weekly oror monthlymonthly basis.basis. Cheese Maker saying Canada’s protectionist policies market “could provide tremendous • Sufficient Quantities are in direct violation of its trade com- benefi ts for farmers across the country Please contact: Available mitments under the North American and help American agribusiness offset [email protected] • Call For Pricing Free Trade Agreement (NAFTA) and recent losses,” the letter adds. (866) 547-6510 the World Trade Organization (WTO). In addition to the size of the Cuban The organizations urged the presi- market, its proximity to U.S. ports “al- dent and his key cabinet members to lows for considerably lower shipping take immediate action. The letter to costs and shorter delivery times than (800) 200-6020 Trump was signed by the International our foreign competitors,” the letter www.cedargrovecheese.com Dairy Foods Association (IDFA), the says. “The logistical advantages alone For more information please visit www.cedargrovecheese.com National Milk Producers Federation should make Cuba a common-sense www.whalenfoodsinc.com (NMPF), the U.S. Dairy Export Council partner for two-way commerce. In- (USDEC) and the National Association stead, the federal government over- For more information please visit • STORAGE 13 www.whalenfoodsinc.com © 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 10 CHEESE MARKET NEWS® — February 3, 2017 EVENTS

CDFA Secretary Karen Ross to host farm bill listening sessions, seeking public comments

SACRAMENTO — California Depart- practices that are environmentally federal funding nationwide to support a The 2018 Farm Bill Listening Sessions ment of Food and Agriculture (CDFA) sound and provides important nutri- variety of food and agricultural programs are a public forum allowing individuals Secretary Karen Ross is holding several tional funding for our citizens. How including crop insurance, conservation, input on California’s priorities for the public forums across the state, seeking our California congressional delegation nutrition and trade, CDFA adds. upcoming farm bill. Provided comments input from farmers, ranchers and other helps to shape the federal farm bill will The listening sessions will take place will be used to help develop recom- stakeholders on priorities for the 2018 result in positive investments to our Feb. 7 from 4:30 p.m. to 6:30 p.m. in mendations on the farm bill that will be Farm Bill. communities, our health and agricul- Modesto, California; Feb. 8 from 4:30 shared with California’s congressional “The farm bill is as important to tural economy.” p.m. to 6:30 p.m. in Chico, California; delegation and the leadership of the Sen- San Francisco and Los Angeles as it is The current farm bill is set to expire Feb. 16 from noon to 3 p.m. in Tulare, ate and House agricultural committees. to the Central Valley,” Ross says. “This next year necessitating action by Con- California; Feb. 22 from 4:30 p.m. to 6:30 Public comments also can be emailed legislation ensures a robust farm safety gress, according to CDFA. The farm bill p.m. in Salinas, California; and Feb. 23 to [email protected]. For more infor- net, promotes farming and ranching provides an estimated $489 billion in from 1 p.m. to 3 p.m. in Los Angeles. mation, visit www.cdfa.ca.gov. CMN

REGISTRATION NOW OPEN FOR 2017 Short Courses NEWS/BUSINESS „ Cheesemaking X Basic-Plus, Mount Vernon, WA; February 7-9, 2017 NASS up 1.7 percent. (Designed for beginning cheesemakers interested in farmstead and artisan Production of Mozzarella, the na- Continued from page 1 ȱ ȱ Œ‘ŽŽœŽȱ™›˜žŒ’˜—Dzȱ’—Œ•žŽœȱꎕȱ›’™ȱ˜ȱ•’ŒŽ—œŽȱŒ‘ŽŽœŽ–Š”’—ȱŠŒ’•’¢ǯǼ tion’s most-produced cheese, totaled X 31st Advanced, Pullman, WA; March 7-9, 2017 360.3 million pounds in December, (Designed for experienced cheesemakers, supervisors, management, ȱ ȱ ȱŠ—ȱ–Š›”Ž’—ȱ™Ž›œ˜——Ž•Dzȱ’—Œ•žŽœȱ‘Š—œȬ˜—ȱŒ‘ŽŽœŽ–Š”’—ǯǼ chart below.) down 1.2 percent from December 2015. December cheese production was Total Italian-type production, of which „ Pasteurization up 3.0 percent from November 2016’s Mozzarella is the largest component, X Workshop, Pullman, WA; April 19-20, 2017 1.020 billion pounds; when adjusted was 460.6 million pounds in December, (Designed for plant operators, maintenance, QC, management and for the length of the months, Decem- a 1.1-percent decline from December ȱ ȱ œž™™•’Ž›œDzȱŒ˜ŸŽ›œȱŸŠȱŠ—ȱ‹Šœ’Œȱ ȱœ¢œŽ–œǯǼ ber cheese production was down 0.3 2015. percent from November on an average Meanwhile, Cheddar production daily basis. rose 3.5 percent in the December-to- December’s cheese production December comparison, climbing to brought the 2016 total to 12.074 billion 303.1 million pounds in December 2016. For more information, contact John Haugen [email protected]; Phone (509) 335-5737; Fax (509) 335-7525 pounds, up 2.0 percent from 2015. 2016 Total American-type cheese produc- or link to our website: www.creamery.wsu.edu/upcoming was a leap year; when adjusting for the tion, of which Cheddar is the largest length of the years, 2016 production was component, was 415.7 million pounds For more information please visit www.creamery.wsu.edu/upcoming in December, up 3.9 percent from a year earlier. Wisconsin led the nation’s cheese production with 271.3 million pounds in December, a 0.7-percent decline from its production a year earlier. California followed with 216.8 million pounds, up less than 0.1 percent from a year earlier. Idaho ranked No. 3 in December cheese production with 81.7 million pounds, down 1.8 percent from its production a year earlier. The next three cheese-producing states in December were New York with 72.6 million pounds, up 3.3 percent from its production a year earlier; New Mexico with 68.2 million pounds, up 7.7 percent; and Minnesota with 57.7 mil- lion pounds, down 3.4 percent. NASS reports total U.S. butter pro- duction in December 2016 was 163.8 million pounds, down 6.7 percent from December 2015. December butter pro- duction was 13.3 percent higher than November 2016’s 144.6 million pounds; when adjusted for the length of the months, December butter production was up 9.6 percent from November on an average daily basis. The preliminary data puts total 2016 butter production at 1.889 billion pounds, up 2.2 percent from 2015. When adjusting for the length of the years due to leap day, 2016 butter production was up 1.9 percent versus 2015. California led the nation’s but- ter production with 50.4 million pounds in December, down 2.0 per- cent from its production a year earlier, according to NASS. CMN © 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) February 3, 2017 — CHEESE MARKET NEWS® 11 NEWS/BUSINESS

GROWTH nels, Bozic says, citing data from Dairy “I think there’s an opportunity for historic plants but also some incredibly Management Inc. other homes for U.S. dairy fat around modern and effi cient processing plants Continued from page 1 “Will we be able to satisfy domes- the world,” he says. in every category,” Waldvogel says. tic butterfat demand from domestic Waldvogel says he’s hopeful the grow- He acknowledges that U.S. dairy has price issues pushing operations farther sources?” he asks. ing base of consumers abroad with dispos- a been a bit slow to catch up in diversity east, she adds. “The milkfat story is great on all able income will look to full-fat products in the dairy case, but it’s expanded a lot • The fl avor’s in the fat fronts,” Waldvogel says. “The real value like whole milk Mozzarella in the future. in the past fi ve years. He cites Fairlife Meanwhile, a renewed consumer of this is remembering that consumers McCully says demand for dairy fat milk and many of Chobani’s new yogurt interest in full-fat dairy products has ultimately want to eat food that tastes appears to be a durable trend. products as examples of product innova- dairy demand surging across all chan- good, that they enjoy. For many years, “Margarine is now the bad guy,” he tions launched in recent years. we made our product less pleasurable to says. “Butter demand is more elastic than Waldvogel adds that the United CALORIS AGILIX consume and more of a chore. Bringing it used to be. Last year, even with high States is a strong exporter of cheese fat back in gets consumers back inter- butter stocks, we had $2-plus butter.” and whey. Mobile Evaporator ested in the whole complex of dairy.” • Importance of innovation “I think we can compete with any- awarded patent The upside benefi t of this has long A session attendee asked panelists body,” he says. legs, he adds. about the competitiveness of the U.S. Taylor agrees. EASTON, Md. — Caloris Engineering Waldvogel notes that it’s not only dairy sector globally with innovation “I’m very optimistic about U.S. LLC has announced that the CALORIS in the United States, as consumers are and product diversity. dairy’s opportunity going forward in AGILIX Mobile Evaporator has been showing similar interest in Europe. “I think we have great diversity — the marketplace,” she says. CMN awarded a patent from the U.S. Patent and Trademark Offi ce. Arthur Zimmer, CEO and co-founder, Caloris Engineering, is listed as the inven- tor on U.S. Patent 9,487,415 for a Mobile Mechanical Vapor Recompression Evapo- rator. Mechanical Vapor Recompression generates heating vapors by mechanically recompressing the water vapors evapo- rated from the product or waste stream being processed by the evaporator. Many food producers have wastewa- ter ponds that require temporary treat- ment, which is where the tool serves as a solution, the company adds. For more information, visit caloris.com/ caloris-agilix-mobile-evaporator. CMN EVENTS

NYS Cheese Manufacturers’ Association to hold annual meeting March 6-7 SYRACUSE, N.Y. — The New York State Cheese Manufacturers’ Association will hold its 2017 Annual Meeting March 6-7 at the Doubletree Syracuse Hotel in Syracuse, New York. The association will host the meeting both days. The event will begin the morning of the 6th and end following the awards luncheon March 7, according to organizers. In addition to a regular program of events, which will include a cheese judg- ing contest, other program highlights include “GMOs — Consumer Push-Back on Technology,” presented by Margaret Smith of Cornell University and a New York industry outlook update from Ed Gallagher of Dairy Farmers of America. The event will open with a presi- dential address from Tom Eastham of Empire Cheese Inc., organizers add. The registration deadline is Feb. 20. Cost to register for members $325 per per- son, and cost for non-members is $425 per person. This cost includes lunch Monday, a cheese and wine event Monday evening and the awards luncheon Tuesday. To register or for more information, vis- it nyscheesemakers.com/events. CMN For more information please visit www.tetrapakusa.com © 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 12 CHEESE MARKET NEWS® — February 3, 2017 NEWS/BUSINESS

Tillamook County Creamery Association donates $1.5M to new OSU research facility Stronger together

CORVALLIS, Ore. — The Tillamook is expected to help attract more dairy County Creamery Association (TCCA) research funding, allowing for more has announced it is donating $1.5 mil- education of graduate students with lion to support construction of a new an interest in dairy science. Food and Beverage Facility at Oregon The new facility will establish State University (OSU). greater emphasis on manufacturing Total projected cost for the new for undergraduates, and graduate dairy pilot plant facility is $6 million, students will engage in high-level including $3 million planned from technical dairy research that can be philanthropic support — including applied to the fi eld as advised by the TCCA’s donation — and a matching industry, OSU’s College of Agricultural $3 million proposed from state bonds Sciences adds. pending legislative approval in 2017, To be part of OSU’s Department according to OSU’s College of Agricul- of Food Science and Technology, the tural Sciences. planned facility will have space for research, testing and teaching related to Oregon’s dairy industry, along with “I am tremendously other food and beverage industries important to the state. touched and humbled As part of OSU’s Oregon Quality by Tillamook’s trust Food and Beverage Products Initia- in our program.” tive, the new dairy processing facility Photo by Alyssa Mitchell/Cheese Market News will include an automated, small-scale ORLANDO, Fla. — Michael Dykes, right, new president and CEO of the Inter- dairy manufacturing plant with state- Lisbeth Goddik national Dairy Foods Association (IDFA), holds a Q&A with Tom Vilsack, former of-the-art equipment for production agriculture secretary under the Obama administration and new president and OREGON STATE UNIVERSITY of cheese, ice cream, dairy-based CEO of the U.S. Dairy Export Council (USDEC), during lunch Tuesday at IDFA’s powders and other products. The fa- Dairy Forum. Dykes and Vilsack discussed priorities moving forward for the dairy cility also will hold lab and classroom industry and agreed that with a united voice, dairy is “stronger together.” Dykes “(TCCA’s donation is) a fantastic space as well as research facilities for stumped Vilsack when asking him to pick his favorite ice cream fl avor — “Why support that will be a game changer both student training and industry would you ask me a question like that?” Vilsack teased, eliciting laughs from the for our program,” says Lisbeth God- collaborations. audience. Vilsack says his top priorities as president of USDEC include secur- dik, professor and dairy foods exten- “We are extremely grateful to be ing more access for dairy, increasing demand and facilitating sales, noting he sion specialist, OSU. “We have many part of such a thriving food and bev- “needs the help of everyone in this room.” In his morning address Monday, Dykes programs that will be expanded and erage industry here in Oregon and to noted the importance of industry collaboration and establishing relationships. will allow us to serve the dairy indus- operate in a state that has such strong “When we focus on the areas of shared interest, that’s a win-win,” he says. CMN try far better than in the past. I am education and research partners,” says tremendously touched and humbled Patrick Criteser, president and CEO, by Tillamook’s trust in our program.” TCCA. “This donation demonstrates WCMA launches new mobile-friendly website Goddik adds that the vision for the our confi dence in OSU to train the facility is to attract great students next generation of dairy scientists MADISON, Wis. — The Wisconsin Cheese cational opportunities, industry events to careers in dairy and provide the and to partner with other companies Makers Association (WCMA) this week and member successes, WCMA says the industry with an accessible innovation around the region to advance the launched its new website, WisCheese website provides users with an easy-to- facility. In addition, she says the facility industry in a signifi cant way.” CMN Makers.org. Designed to highlight edu- navigate, mobile-friendly format. “WCMA’s fi rst job is to facilitate in- dustry communication, and a revamped website allows us to connect with our members, as well as newcomers to the fi eld, in new ways,” says John Umhoefer, THE STANDARD OF EXCELLENCE WCMA executive director. WCMA says WisCheeseMakers.org of- fers greater depth of content, including an IN CHEESEMAKING SOLUTIONS exhaustive calendar application, service opportunities, easy-to-fi nd scholarship and internship forms and the association’s Cheese mission and history. Policy position papers RELCO provides a wide variety of cheese making Vats soon will be shared on the site. equipment and services for a comprehensive cheese WCMA members will have log-in plant design. Our cheese-technology experts will design access to a searchable electronic direc- ĂƉƌŽĐĞƐƐƚŚĂƚŝƐĐƵƐƚŽŵŝnjĞĚĨŽƌLJŽƵƌƐƉĞĐŝĮĐŶĞĞĚƐ͘ tory, the association’s annual report, new workforce tools and archived electronic newsletters. Supplier members also will Block Cottage Draining/ Curd Tables be able to renew their membership online Formersers Cheese Vats Salting Belts through the members-only log-in page. Horizontal Cheese Vats WCMA also says it plans to feature 10,000 - 80,000 capacity member businesses’ major milestones and featuring OptiSet achievements, and offer contest and con- Technology ference videos on WisCheeseMakers.org. “WCMA is growing, not only in mem- | | | Brazil | | USA The Netherlands New Zealand +1 320.231.2210 www.relco.net bership, but in the services and tools THE RELCO® ADVANTAGE we offer our members. This website © COPYRIGHT 2015 RELCO is a registered trademark and L-TECH is a trademark of RELCO, LLC. refl ects our expanded capacity to sup- port the industry and advocate for its For more information please visit www.relco.net best interest,” Umhoefer says. CMN © 2017 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected])