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November 22, 2019 d's Dairy orl In W du e st h r t y g W n i e e v Since 1876 k r e l y S Outshred Your Competition CHEESE REPORTER www.URSCHEL.com Vol. 144, No. 23 • Friday, November 22, 2019 • Madison, Wisconsin USDA Announces MFP Payments, Milk Production Rose 1.7% In October; Seeks Numerous Dairy Products Milk Cow Numbers Washington—US Secretary of MFP payments are limited to a Specifically under the FPDP, Increased For Fourth Agriculture Sonny Perdue last Fri- combined $250,000 for dairy and AMS is seeking 2,490,600 pounds Straight Month day announced the second tranche hog producers and a combined of Cheddar cheese for delivery of 2019 Market Facilitation Pro- $250,000 for specialty crop pro- during the first three months of Washington—US milk produc- gram (FMP) payments aimed at ducers. However, no applicant can 2020. That soliciation includes tion in the 24 reporting states in October totaled 17.3 billion assisting farmers suffering from receive more than $500,000. 1,247,400 pounds of 12/1-pound pounds, up 1.7 percent from Octo- damage due to trade retaliation by More information is available at yellow Cheddar chunks, and ber 2018, USDA’s National Agri- US trading partners. farmers.gov/MFP. 1,243,200 pounds of 6/2-pound cultural Statistics Service (NASS) The payments were slated to Also as part of its trade miti- yellow shredded Cheddar. These reported Tuesday. begin this week. Producers of gation efforts, CCC Charter Act cheese products will be used in September’s milk production MFP-eligible commodities, includ- authority is being used to imple- The Emergency Food Assistance estimate was revised up by 7 mil- ing milk, will now be eligible to ment a $1.4 billion Food Purchase Program (TEFAP). lion pounds, so September output receive 25 percent of the total and Distribution Program (FPDP) The contract type is firm fixed in the 24 reporting states was up payment expected, in addition to through USDA’s Agricultural Mar- price. Offers were due today. Also under the FPDP, AMS is 1.7 percent from a year earlier, the 50 percent they have already keting Service (AMS) to purchase rather than up 1.6 percent as origi- received from the 2019 MFP. surplus commodities affected by seeking 1,723,680 pounds of butter for delivery during the first three nally estimated. MFP signup at local Farm Ser- trade retaliation, including milk Production per cow in the 24 vice Agency (FSA) offices will run and other dairy products, for distri- months of 2020. Those offers were also due today. reporting states averaged 1,964 through Friday, Dec. 6, 2019. bution by USDA’s Food and Nutri- pounds for October, 33 pounds Dairy producers who were in tion Service (FNS) to food banks, Meanwhile, AMS is seeking 37,440 pounds of yellow 0.75- above October 2018. business as of June 1, 2019, will schools, and other outlets serving The number of milk cows on receive a 20-cent-per-hundred- low-income individuals. ounce sliced Cheddar cheese for delivery during the first half of farms in the 24 reporting states in weight payment based on Dairy AMS is planning to purchase an October was 8.806 million head, Margin Coverage (DMC) produc- estimated $68 million in milk and January 2020. This sliced Ched- dar will be used in the National 1,000 head less than October 2018 tion history. other dairy products through the but 5,000 head more than Septem- This is the second of up to three FPDP. School Lunch Program. The contract type is firm fixed ber 2019. Milk cow numbers in tranches of MFP payments. The In that regard, AMS in the past the 24 reporting states have now third tranche will be evaluated week has issued solicitations for price. Offers are due on Monday, Dec. 2, by 1:00 p.m. Central time. increased for four straight months as market conditions and trade cheese and butter under the FPDP, For more information, contact after bottoming out at 8.777 mil- opportunities dictate. If conditions and has also issued several solici- lion head in June. warrant, the third tranche will be tations for cheese and fluid milk Milk production in the entire made in January 2020. under other authorities. • See USDA Seeks Dairy, p. 10 US during October was estimated at 18.1 billion pounds, up 1.3 percent from October 2018. Pro- DSM To Acquire CSK FDA Planning To Reopen Comment duction per cow in the US aver- Food Enrichment; aged 1,941 pounds for October, 33 Period On Using UF Milk In Cheese pounds above October 2018. Acquisition Boosts Silver Spring, MD—The US UF milk in the manufacture of The number of milk cows on Food and Drug Administra- standardized cheeses and related farms in the US in October was DSM’s Dairy Portfolio tion plans to reopen in the near cheese products. 9.327 million head, 40,000 head Heerlen, Netherlands—DSM on future the comment period on In that 2005 proposed rule, Monday announced that it has a proposal to permit the use of FDA proposed to amend the def- • See Milk Output Up, p. 6 reached agreement with the share- ultrafiltered (UF) milk in making initions of “milk” and “nonfat” holders of specialty dairy solutions standardized cheeses and related milk in the standards of identity Change In Milk Cows provider CSK Food Enrichment cheese products. for cheeses and related cheese Oct 2018 vs. Oct 2019 for the acquisition of a 100 percent FDA’s intention to reopen the products to: provide for ultrafil- in 1000 head interest in the company for a cash UF milk comment period was tration of milk and nonfat milk; 31000 consideration of about 150 million included in the agency’s semian- define UF milk and UF nonfat euros (US$163 million). nual regulatory agenda, which milk as raw or pasteurized milk 20000 Subject to customary condi- was released this week. The or nonfat milk that is passed over tions, the transaction is expected agenda presents the regulatory one or more semipermeable mem- 11000 to close before the end of the year. activities that the US Depart- branes to partially remove water, 6000 5000 FrieslandCampina is selling its ment of Health and Human lactose, minerals, and water-sol- majority shareholder of 82.3 per- Services (HHS), FDA’s parent uble vitamins without altering cent in CSK Food Enrichment, agency, expects to undertake in the casein-to-whey protein ratio -4000 -4000 -5000 -6000 and stated that the other share- the foreseeable future to advance of the milk or nonfat milk, and holders are also selling their shares its mission. resulting in a liquid product; and to DSM. FrieslandCampina noted In October of 2005, FDA had require that such treated milk be that CSK previously announced issued a proposed rule that would declared in the ingredient state- have amended its regulations -30000 • See DSM To Buy CSK, p. 10 to provide for the use of fluid • See UF Milk In Cheese, p. 9 CA ID WI CO MN TX MI OH NY PA Page 2 CHEESE REPORTER November 22, 2019 Past Issues Read this week’s issue EDITORIAL COMMENT or past issues of Cheese Reporter on your mobile phone or tablet by scanning this Dean Foods is primarily QR code. DICK GROVES involved in a business that not Cheese Reporter Publishing Co. Inc. ©2019 only isn’t growing, it’s actually shrinking at a pretty rapid rate. 2810 Crossroads Drive, Suite 3000 Publisher / Editor Madison, WI 53718-7972 (608) 246-8430 • Fax (608) 246-8431 Cheese Reporter http://www.cheesereporter.com e: [email protected] DICK GROVES tw: @cheesereporter Publisher/Editor e-mail: [email protected] 608-316-3791 The Rise And Fall Of Dean Foods MOIRA CROWLEY Last week’s announcement by shelf-space and sales as well.” Also Related to that point, consum- Specialty Cheese Editor e-mail: [email protected] Dean Foods Company that it had in its 2018 annual report, Dean ers are drinking less milk then they 608-316-3793 filed for voluntary Chapter 11 Foods noted that it had increased once did. Back in 2000, per capita KEVIN THOME bankruptcy may not have been all its ownership interest in Good fluid milk consumption stood at Advertising & Marketing Director that surprising, but it’s still kind of Karma Foods, a producer of flax- 197 pounds, which was actually e-mail: [email protected] shocking when one of the largest based milk and yogurt products, to down 50 pounds from 1975. 608-316-3792 dairy companies in the world has 67 percent. Clearly, per capita milk con- BETTY MERKES Classifieds/Circulation Manager such enormous financial problems. Another indication of how sumption had been flat to declin- e-mail: [email protected] This development provides an things changed over the years for ing for years when Suiza Foods 608-316-3790 opportunity to look back at the Dean Foods concerns risk factors and Dean Foods merged, but REGULAR CONTRIBUTORS: recent history of Dean Foods and facing the company. For example, the declines accelerated after Jen Pino-Gallagher, Bob Cropp, Neville its main business, and how the in its 2003 annual report, the sec- they merged, including a drop of McNaughton, Dan Strongin, John Umhoefer tion on “Risk Factors” ran about 32 pounds just from 2010 (178 You can e-mail our contributors at: company has evolved, and its for- [email protected] tunes have declined, since roughly one page, including two paragraphs pounds) to 2018 (146 pounds).
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