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e l y S OutShred Your Competition PRECISE, RAPID CHEESE REPORTER SHREDS urschel.com  Vol. 144, No. 33 • Friday, January 31, 2020 • Madison, Wisconsin NMPF, IDFA Push Dairy Bills At Trump Signs USMCA; Canada Begins House Subcommittee Hearing Ratification Process Washington—President Trump NMPF Wants DAIRY PRIDE Act Passed, IDFA made from the milk of animals, not on Wednesday signed the new Backs Bill Defining Term ‘Natural Cheese’ from beans, seeds, nuts, or grains, US-Mexico-Canada Agreement Balmer said. (USMCA), which will replace the “Unfortunately, grocery store The National Milk (FDA) would be required to issue old North American Free Trade Washington— shelves today are filled with innu- Producers Federation (NMPF) and final guidance on enforcement of Agreement (NAFTA) when it is merable copycat products that flout International Dairy Foods Associ- these provisions not later than 180 implemented. these long-established standards ation (IDFA) testified in support days after enactment and would be Trump called the USMCA of identity and mislead consum- of separate dairy-related bills at a required to report on enforcement a “colossal victory” for farmers, ers about their nutritional equiva- House Energy and Commerce sub- of these provisions no later than ranchers and others. lence to real milk and milk-based committee hearing here Wednes- two years after enactment. Mexico and Canada are the products,” Balmer said. day. At its core, the DAIRY PRIDE two leading markets for US dairy “Plant-based industrial food Tom Balmer, NMPF’s executive Act “would ensure the accurate exports on a value basis, accord- processors typically go to great vice president, testified in sup- and appropriate labeling of non- ing to figures from USDA’s Foreign lengths to try to replicate real milk port of the bipartisan, bicameral dairy foods utilizing standardized Agricultural Service. In 2018, US by grinding seeds, nuts or grains Defending Against Imitations and dairy terms, an issue with signifi- dairy exports to Mexico were val- into a powder, adding water, whit- Replacements of Yogurt, Milk, and cant implications for consumers,” ued at almost $1.4 billion, while eners, sweeteners, stabilizers and Cheese to Promote Regular Intake Balmer said. Standards of identity dairy exports to Canada were val- emulsifiers, possibly blending in of Dairy Everyday Act, better were written to promote honesty ued at $639 million. some vitamins and minerals, and known as the DAIRY PRIDE Act. and fair dealing in the interest of USMCA provides additional then marketing the resulting con- The legislation would define consumers by promulgating regu- market access for US dairy prod- coction using dairy terms,” Balmer in statute that a food is only a lations to establish reasonable ucts through new Canadian tariff- continued. dairy product if the food is, con- definitions, or standards, for food rate quotas (TRQs) exclusively “By calling these products ‘milk’ tains as a primary ingredient, or is products. for the US for products including they are clearly seeking to trade derived from, the lacteal secretion However, over “many years,” fluid milk, cream, butter, skim on the health halo of real milk. obtained by the complete milking FDA has been “negligent” in milk powder, cheese, and other Yet these imitators engage in mis- of one or more hooved mammals. enforcing the standards of iden- dairy products, according to a 2019 leading marketing because their The bill would also prohibit a food tity, which “clearly stipulate” that report from the US International products don’t have the same con- from being marketed as a dairy a product labeled as “milk” comes Trade Commission (USITC). On sistent nutritional offerings as real product if the food does not meet from a cow or certain other lactat- the import side, the US agreed to milk, certainly not across the many this definition. ing animals, and that other similar grant additional access to Canada Also under the measure, the US products such as cheese, butter, through new, country-specific Food and Drug Administration ice cream and yogurt, are likewise • See Dairy Bills Backed, p. 7 dairy TRQs. USMCA also places export charges on total Canadian exports USDA Seeks String Dairy Industry Will See More Change to all countries over a certain volume for skim milk powder, milk Cheese, Butter Under In Next Five Years Than In Last 15 protein concentrates, and infant Trade Mitigation Scottsdale, AZ—The dairy “The future is in innovation,” formula, the USITC report noted. industry will see more change in Dykes said. “We must continue And Canada committed to elimi- Food Purchase, the next five years than anything to innovate to stay ahead and it has experienced over the last 15 remain on the consumer’s shop- • See USMCA Signed, p. 5 Distribution Program years, Michael Dykes, president ping list. Washington—USDA’s Agricul- and CEO of the International “That’s what we’ve done with Jan. Avg Prices – 2019 vs 2020 tural Marketing Service (AMS) Dairy Foods Association (IDFA), microfiltered milk,” he pointed Average CME Prices** this week issued solicitations for predicted Monday at the 2020 out. Fairlife and Darigold Fit Class 3 and Class 2 Milk Price x 10 String cheese and butter under Dairy Forum here. (twice the protein, half the sugar $2.30 the authority of Section 5d of the “We will continue to see con- and extended shelf life) as well as Commodity Credit Corporation solidation across our industry, and Slate shelf-stable chocolate milk $2.10 Charter Act. in a can with only nine grams of change in the products we make, $1.90 These solicitations are part of the way our industry is organized sugar are great examples. Costco the Food Purchase and Distribution to produce and deliver those took cheese to new heights with $1.70 Program (FPDP), with the purpose products, and we will see more a prepackaged cheese flight, while of assisting farmers in response to public scrutiny on our industry Sargento mixed nuts with cheeses $1.50 trade damage from retailatory tar- with changing consumer demands in a grab-and-go and Dairy Farm- $1.30 iffs being imposed by some United and preferences for our products,” ers of America combined cow’s States trading partners. Dykes said. milk with a plant-based beverage. $1.10 Under one invitation, USDA is For businesses and people alike, The dairy industry is embrac- $0.90 seeking a total of 869,400 pounds just the word “change” can be ing the change it takes to create $0.70 of low moisture part skim Mozza- scary, Dykes noted. But call it by world-class products, Dykes con- Blocks** Barrels** Butter** NFDM** another name, innovation, and it • See USDA Seeks, p. 3 becomes exciting and essential. • See More Change, p. 6 Page 2 CHEESE REPORTER January 31, 2020

Past Issues Read this week’s issue EDITORIAL COMMENT or past issues of Cheese Reporter on your mobile phone or tablet by scanning this US milk production hasn’t QR code. DICK GROVES declined since 2009, and in fact has Cheese Reporter Publishing Co. Inc. ©2020 grown by over 29 billion pounds 2810 Crossroads Drive, Suite 3000 since that last decline. 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 Despite Problems, Dairy Industry Brimming With Optimism MOIRA CROWLEY Specialty Cheese Editor Let’s face it, these have not exactly Dairy Forum since joining IDFA first week in office. The US then e-mail: [email protected] been the best of times for the US four years ago. stood by and watched the other 608-316-3793 dairy industry. Among other things, During his Dairy Forum presen- TPP countries move ahead with KEVIN THOME within the last three months, two tation Monday morning, Dykes the Comprehensive and Progres- Advertising & Marketing Director industry giants filed for bankruptcy, made some great points about why sive Trans Pacific Partnership e-mail: [email protected] 608-316-3792 dairy farms arere going out of busi- things are looking positive for the (CPTPP), an agreement that

BETTY MERKES ness at record or near-record rates, dairy industry. For example, despite included some nice dairy access Classifieds/Circulation Manager trade wars are posing major prob- all the negative headlines about gains for US competitors such as e-mail: [email protected] lems for expanding dairy exports, fluid milk sales, Dykes pointed out New Zealand and Australia. 608-316-3790 and plant-based dairy alternatives that the dairy business in the US at That was just the beginning REGULAR CONTRIBUTORS: are garnering heaping amounts of the consumer level has never been of trade-related problems for the Jen Pino-Gallagher, Bob Cropp, Neville US dairy industry. Ongoing tariff McNaughton, Dan Strongin, John Umhoefer praise, not to mention some nice bigger, never been stronger, and it You can e-mail our contributors at: increases in sales. continues to grow. Indeed, since wars with major US dairy export [email protected] The Dean Foods Company and USDA began tracking per capita markets ranging from Mexico to Borden Dairy Company bankruptcy dairy consumption in the 1970s, China have seen at least short- The Cheese Reporter is the official filings were especially troublesome. the trend has continued upward for term declines in cheese and other publication of the following associations: For one thing, these weren’t just five straight decades, increasing 22 dairy exports to those countries, California Cheese & Butter Association percent since 1975. and it remains to be seen what the Lisa Waters, dairy companies, they were sort of 1011 Pebble Beach Dr, Clayton, CA 94517 iconic companies — Dean Foods Yes, the commodity fluid milk long-term implications of these Central Wisconsin Cheesemakers’ and was the largest fluid milk processor business is in decline, but that’s not tariff wars will be. Buttermakers’ Association in the US and has a history dating the case with the value-added milk This is especially true with Jim Mildbrand back to 1925, while Borden’s roots beverage business. As noted in this China, which has such enormous [email protected] date all the way back to the 1850s. space just a couple of weeks ago, potential that there was an entire Cheese Importers Association of America Dairy Forum session devoted to 204 E St. NE, Washington, DC 20002 And the Dean Foods and Borden it’s a promising sign for that busi- bankruptcy were tied, at least in ness when the Coca-Cola Com- “The Power of China.” Eastern Wisconsin Cheesemakers’ and Buttermakers’ Association some media stories, to the growth pany buys the remaining shares of But things are starting to look up Barb Henning, Henning’s Cheese of plant-based dairy alternatives. Fairlife, a brand that’s skyrocketed on the trade front. For one thing, 21812 Ucker Road, Kiel, WI 53042 Several months before Dean Foods to $500 million in sales in just a the US has approved the new International Dairy-Deli-Bakery Association filed for bankruptcy, the Plant few short years. US-Mexico-Canada Agreement, 8317 Elderberry Road, Madison, WI 53717 Based Foods Association reported And in another sign of indus- which will replace the old North Missouri Butter & Cheese Institute that sales of plant-based “milks” try growth, as we reported just last American Free Trade Agreement Terry S. Long, 19107 Factory Creek Road, grew 6 percent for the 52-week week, US milk production hit a when it is ratified by Canada. Jamestown, MO 65046 period ending in April 2019, to record 218.3 billion pounds in Also, the US and China recently Nebraska Cheese Association Ed Price, Fremont, NE 68025 $1.9 billion, and now make up 13 2019. US milk production hasn’t reached agreement on a Phase I percent of the entire milk category. declined since 2009, and in fact deal that’s expected to provide New York State Cheese Manufacturer’s Assn Kathyrn Boor, 11 Stocking Hall, And this point is inevitably tied has grown by over 29 billion some benefits to US dairy export- Cornell University, Ithaca, NY 14853 in with the fact that fluid milk pounds since that last decline. ers. For example, under the agree- North Central Cheese Industries Assn sales have been declining rapidly That’s hardly an indication of an ment, China will recognize the US Lloyd Metzger, SDSU, Box 2104, in recent years, and that per capita industry in decline. system of oversight for dairy prod- Brookings, SD 57007 fluid milk consumption has been Moreover, thanks to the effi- ucts as providing the same level North Dakota Cheese Makers’ Assn dropping for decades. ciency of farmers and innovation of protection as China’s, thereby Chuck Knetter, Medina, ND 58467 But despite these and numer- throughout the supply chain, the eliminating the need for China- Ohio Swiss Cheese Association ous other problematic issues, the US produces twice as much milk specific inspections of US dairy Lois Miller, P.O. Box 445, Sugar Creek, OH 44681 dairy industry actually appears to today as it did 50 years ago with facilities. And the US and Japan South Dakota State Dairy Association be brimming with optimism in half as many dairy cows on much have also reached a phase one Howard Bonnemann, SDSU, Box 2104, many ways these days. That opti- less land, Dykes pointed out. Over trade deal with some dairy benefits. Brookings, SD 57007 mism became apparent during this the past 30 years alone, milk pro- Yes, the dairy industry has been Southwestern Wisconsin week’s 2020 Dairy Forum in Scott- duction has grown 51 percent through a particularly troubling Cheese Makers’ Association sdale, AZ. while carbon dioxide output has period in recent years, but it some- Myron Olson, Chalet Cheese Coop, N4858 Cty Hwy N, Monroe, WI 53566 For example, the Dairy Forum declined 9 percent. how continued to grow during that itself attracted record attendance Trade is another area where period and, here at the beginning Wisconsin Association for Food Protection Bob Wills of over 1,100 people. Michael there’s reason for optimism in the of the third decade of the 21st cen- PO Box 620705, Middleton WI 53562 Dykes, president and CEO of Dairy US dairy industry. The past three tury, the dairy industry appears to Wisconsin Cheese Makers’ Association Forum host International Dairy years haven’t exactly been positive be brimming with optimism about John Umhoefer, 5117 W. Terrace Dr., Foods Association, said he senses on the trade policy front, start- its future prospects. Suite 402, Madison, WI 53718 “a level of enthusiasm and energy” ing with President Trump pulling Wisconsin Dairy Products Association Cheese Reporter welcomes letters to the Brad Legreid, 8383 Greenway Blvd., and an embrace of change that he the US out of the Trans-Pacific editor. Comments should be sent to Dick Middleton, WI 53562 doesn’t think he’s sensed at the Partnership agreement during his Groves, at [email protected].

CHEESE REPORTER (Publication Number: ISSN 0009-2142). Published weekly by Cheese Reporter Publishing Co. Inc., 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-7972; Phone: (608) 246-8430; Fax: (608) 246-8431. Subscriptions: $140.00 per year in USA; Canada and Mexico: $195.00 per year; other foreign subscribers, please write for rates. Advertising and Editorial material are copyrighted material. Any use without publisher’s consent is prohibited. Cheese Reporter does not endorse the products of any advertiser or any editorial material. POSTMASTER: If undeliverable, Form 3579 requested. Periodicals postage paid at Madison, WI. Address all correspondence to: Cheese Reporter, 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-7972 January 31, 2020 CHEESE REPORTER Page 3

Lakeview Capital USDA Seeks Offers under this invitation AMS is also seeking high pro- (Continued from p. 1) are due at 1:00 p.m. Central time tein nonfat yogurt for schools Acquires The Mochi on Feb. 11. The contract type is participating in the National rella String cheese, 360/1-ounce firm fixed price. For more details, School Lunch Program. Specifi- Ice Cream Company box, for delivery in April, May contact Jenny Babiuch, USDA, at cally, the agency is seeking a total Birmingham, MI—An invest- and June. The String cheese will email [email protected]. of 144,144 pounds of high protein ment fund managed by Lakeview be used in The Emergency Food Separately, AMS issued an invi- yogurt, including 45,876 pounds Capital, Inc., has closed its acquisi- Assistance Program (TEFAP). tation for a total of 297,432 pounds of high-protein blueberry yogurt, tion of The Mochi Ice Cream Co., Offers under this invitation are of evaporated skim milk and over 24/4-ounce cups; 81,486 pounds which makes My/Mo Mochi Ice due at 9:00 a.m. Central time on 18 million pounds of UHT milk for of high-protein strawberry yogurt, Cream and is described as the larg- Tuesday, Feb. 11. The contract type delivery in April, May and June. 24/4-ounce cups; 7,686 pounds of est branded manufacturer of mochi is firm fixed price. For more infor- These products will be used in the high-protein vanilla yogurt, 24/4- ice cream in North America. mation, contact Mary Mahoney, National School Lunch Program, ounce cups; and 9,096 pounds of Lakeview Capital acquired The USDA, at (816) 926-2501; email Food Distribution Program on high-protein vanilla yogurt, 6/32- Mochi Ice Cream Co. from Cen- [email protected]. Indian Reservations, Commodity ounce tubs. tury Park Capital Partners. Also under the trade mitigation Supplemental Food Program, and Offers are due on Wednesday Headquartered in Los Angeles, Food Purchase and Distribution TEFAP. Feb. 5, at 1:00 p.m. Central time. CA, My/Mo Mochi Ice Cream is Program, AMS is seeking bids for a Offers are due by 9:00 a.m. Cen- The contract type is firm fixed said to be the creator of the mochi total of 1,928,880 pounds of salted tral time on Tuesday, Feb. 11. The price. ice cream category and the leading print butter, 36/1-pound cartons, contract type is firm fixed price. For more information, contact national brand, currently available for delivery in April, May and For details, contact Clyde King, Jenny Babiuch, USDA, at (816) in over 20,000 retailers throughout June. The butter will also be used USDA, at email clyde.king@ams. 823-1145; email jenny.babiuch@ the US. The company has over a in TEFAP. usda.gov. usda.gov. 100-year history and is credited with creating mochi ice cream, a handheld, portion-controlled snack of ice cream wrapped in sweet rice dough. Craig Berger, president and CEO of The Mochi Ice Cream Co., along with the management team, will remain with the company in their current roles under the new ownership. THERE’S A REASON “Under Lakeview’s ownership, we are very excited to continue WE CALL IT building on the incredible momen- tum we have generated,” Berger “YIELDMASTER.” said. “Lakeview has a proven track record of success, and through our shared vision and collabora- tion, we will continue to grow and expand our business.” “We’re thrilled to be partner- ing with a focused, seasoned management team to support growth in the snack category, a segment we find very attractive,” said Jake Freeman, director of investments for Lakeview Capital, Inc. “We Making every drop of are closely aligned with the team milk count. on our plans to deploy significant capital to continue to build a leading, global branded mochi snack We designed the Tetra Pak® Cheese Vat platform.” Yieldmaster 2 with dual shaft technology Terms of the transaction were to produce a higher yield. not disclosed. My/Mo Mochi Ice Cream is • Better fat retention than any other available in a variety of flavors, vat. Period. including Chocolate Sundae, Dulce de Leche, Vanilla Blue- • Dual shaft counter-rotating blades berry, S’mores, Sweet Mango, Ripe for efficient cutting and stirring to Strawberry, Cookies & Cream, ensure curds get the treatment they Green Tea, Double Chocolate, need, when they need it. Vanilla Bean, Salted Caramel, and • Durable construction and robust Mint Chocolate Chip. The com- seals. pany also makes five varieties of • Easy to operate, clean and maintain. Ice Cream with Mochi Bits, as well as several varieties of non-dairy The Tetra Pak® Cheese Vat Yieldmaster and vegan frozen desserts. 2 combines the latest technology with For more information, visit our more than 80 years of experience www.mymomochi.com. Century Park Capital Partners designing cheese processing equipment. is a Los Angeles-based private We think you’ll like the results. equity group that invests in family business, owner-operated firms Moving food forward. Together. and corporate divestitures with the www.tetrapakusa.com purpose of accelerating growth and transforming the companies into leading industry players. For more information, visit www.tetrapakusa.com Page 4 CHEESE REPORTER January 31, 2020

In February 2017, the criminal These checks were in the custody Cheese Company complaint stated, the US Depart- of Moran and Moran did not have Owner Charged With ment of Agriculture (USDA) consent to use, transfer, conceal, from our received a complaint that someone or retain possession of the checks. Felony Theft at a cheese plant in Rudolph, WI, Witness 1 worked with Moran Wisconsin Rapids, WI—Wiscon- was forging signatures on under- at Dairy State, and reported to archives sin Attorney General Josh Kaul on payment checks. Processors, such USDA that Moran would never Thursday announced that Michael as cheese plants, write underpay- send out the checks to the milk 50 YEARS AGO J. Moran, owner of Wisconsin ment checks to producers, such as producers, the complaint alleges. Jan. 30, 1970: Madison—A Dairy State Cheese Company, dairy farmers, when USDA sets According to Witness 1, after the building that was part of the 1967 Rudolph, WI, has been charged the price of milk higher than what auditor would leave, Moran would deal in which legislators allowed with one count of felony theft. a processor initially paid for the forge the payees’ signatures on the the sale of colored oleomargarine According to the complaint, milk. USDA auditors determine back of the checks and then place in Wisconsin was given approval from in or about January 2012, the amount of underpayment and them in the cash register at the here this week for construction and continung until in or about order processors to issue the under- cheese store adjacent to the cheese on campus. The $5.2 million April 2018, Moran, by virtue of payment checks. plant, thereby converting them for Animal Science Building was his business and employment, had The forgeries were found on his own use, all without the con- financed from a 5.25-cent tax possession and custody of negotia- checks issues by Wisconsin Dairy cent of the payees. The checks on colored oleomargarine and ble instruments of a group of milk State Cheese Company and made from the register would then be $275,000 in gift funds to the Uni- producers that exceeded $10,000 payable to milk producers, the taken together to the bank at the versity of Wisconsin-Madison. in value but less than $100,000 criminal complaint said. end of the week and deposited. in value, and intentionally used, USDA routinely audited the Approximately 83 milk produc- Philadelphia, PA—Robert transferred, concealed, and company. If the USDA auditor ers reported to have been victim- Rosenbaum, 72, internationally retained possession of such instru- identified underpayments, then ized, the complaint stated. Total known authority in the dairy and ments without the milk producers’ the auditor would observe Michael losses for these 83 milk producers food industries, past president of consent, contrary to his authority, Moran write checks to each pro- amounts to $21,250.97. Of the vic- the Dairy & Food Industries Sup- and with intent to convert them ducer, the complaint stated. When tims, 21 are over 60 years old. ply Association, and founder of to his own use or to the use of any these checks were made, they were Moran has been summoned to the Dairy Rememberance Fund, other person except the milk pro- negotiable instruments and were appear at the Wood County Court- passed away here this week. ducers. the property of the milk producers. house on Monday, Feb. 24, 2020. 25 YEARS AGO Jan. 27, 1995: Arlington, as a dairy processing specialist, including the fluid milk Volun- PERSONNEL VA—A recent USDA report and will cover the eastern portion tary Shelf-Life (VSL) Program. found that the proposed welfare Lipari Foods has tapped DAVE of New York State. Ospina is a During his time as a post-doctoral reform section of the Republican LITTLESON as chief financial native of Colombia, and a gradu- associate in Cornell’s Milk Qual- Party’s “Contract with America” officer, succeeding CURTIS ate of veterinary school from Fun- ity Improvement Program, Trm- would seriously reduce consump- GROVES, who will retire later dacion Universitaria San Martin cic contributed to a number of tion of milk and dairy products, this year after serving as Lipa- in Bogota. While in Colombia, on-site and off-site workshops, and cut dairy farmer income by ri’s CFO for eight years. Little- she worked for Alqueria S.A., and worked with two artisan as much as $500 million per year. son comes to Lipari with almost specializing in milk production cheese producers as part of Cor- An analysis of USDA’s report 10 years of experience from his quality and control. Ospina also nell University’s dairy business by NMPF showed the impact previous employer, Pet Supplies worked for Bayer S.A. as a veteri- incubator. Trmcic returns to on some dairy sectors could be Plus, a Michigan-based specialty narian in the biosecurity program join the team after working for much worse. retailer of pet products with over for milk production. nearly four years in different aca- 450 corporate and franchised demic and government roles in Springfield, MO—Members of locations in over 30 states. ALJOSA “AL” TRMCIC is a Canada, one of which was a food Southern Milk Sales of Mont- new Cornell Dairy Foods Exten- safety and dairy specialist at Brit- gomery, AL, voted to merge KAREN OSPINA has joined sion associate, participating in all ish Columbia Center for Disease with Mid-America Dairymen, Cornell Dairy Foods Extension extension and research activities Control. Inc., effective Feb. 1. For the past three years, Mid-Am has managed the operations of SMS on a contract basis.

10 YEARS AGO Jan. 29, 2010: Milwaukee, WI—The US Department of Jus- tice this week filed a civil antitrust lawsuit against Dean Foods Com- pany challenging the company’s April 2009 acquisition of Foremost Farms USA’s fluid milk plants in De Pere and Waukesha, WI. Dean bought “substantially all” of Fore- most Farm’s Consumer Products Division’s assets for $35 million.

Cleveland, WI—A great majority of California’s nearly 2,000 dairies are still engaged in full- scale milk production after suffer- ing staggering losses during late 2008 and throughout 2009, certi- fied public accountant Paul Mul- der announced here this week. “They’ve run up against a wall,” he said. “They don’t know what to do. They’re happy if they were able to operate at close to break-even.” For more information, visit www.drtechinc.com January 31, 2020 CHEESE REPORTER Page 5

Pennsylvania Man USMCA Signed FarmFirst Dairy Cooperative. “It was “USMCA is a win for Midwest (Continued from p. 1) no small feat in getting this trade dairy farmers. Not only does this Charged In Case agreement across the finish line.” deal allow the dairy community to nate class 6 and class 7 milk goods, Only after the USMCA is fully build on two of our strongest export Involving Trickling including their associated milk implement will dairy farmers “receive markets, Mexico and Canada, it Springs Creamery class prices, within six months after the full benefit of these hard-won helps ensure our US dairy farm- the USMCA enters into force. trade details,” said Jeff Lyon, Farm- ers will not be harmed by Canada’s Philadelphia, PA—United States The USMCA has been praised First’s general manager. Now “it is up domestic management systems in Attorney William M. McSwain by numerous dairy organizations, to our trade ambassadors to ensure the global dairy marketplace,” said has announced that Philip Elvin including the IDFA, NMPF, US this agreement is fully implemented Mitch Davis of Davis Family Dair- Riehl, of Bethel Township, Berks Dairy Export Council and others. to its full potential.” ies, Belle Plaine, MN. county, PA, has been charged by “Mexico and Canada are crucial “This is a tremendous victory Legislation was introduced Information with conspiracy, secu- trade partners for maintaining the for America’s dairy farmers. In pre- in Canada’s House of Commons rities fraud, and wire fraud, stem- strength of the US dairy industry. serving the well-established mar- this week to implement the new ming from an investigation into a The past few years of marketplace kets of Mexico and Canada, and USMCA. Ponzi scheme worth approximately and trade instability create chal- providing opportunities for even “We are very pleased to take the $60 million. lenges for dairy farmers and pro- more exports there, USMCA will next step in Canada’s domestic rat- Riehl, an accountant, is alleged cessors,” noted John Umhoefer, help bring the long-term economic ification process so that Canadians to have fraudulently solicited tens executive director of the Wiscon- stability necesary for farmers to can take advantage of the benefits of millions of dollars in invest- sin Cheese Makers Association. not only survive but thrive,” said of this agreement,” said Chrystia ments, from his accounting clients “This is great news for US dairy Brody Stapel, a Wisconsin dairy Freeland, Canada’s deputy prime and others, into a bogus invest- farmers,” said John Rettler, a Wis- farmer and president of Edge Dairy minister and minister of intergov- ment program that he operated. consin dairy farmer and president of Farmer Cooperative. ernmental affairs. Riehl then allegedly diverted funds from the program to Trick- LEGAL NOTICE ling Springs Creamery, LLC, a Franklin county, PA-based cream- If you bought butter or cheese directly from a ery of which he was the majority National Milk Producers Federation Cooperatives owner. Riehl also allegedly fraudulently solicited direct investments Working Together Program Member between in Trickling Springs Creamery. December 6, 2008 and July 31, 2013, you could The Information further alleges receive a payment from a $220 million settlement. that Riehl made material misrepresentations about the safety and What is the lawsuit about? A $220 million settlement has been reached in a class action security of these investments in lawsuit brought against National Milk Producers Federation, Agri-Mark, Inc., Dairy his program and about the perfor- Farmers of America, Inc., and Land O’Lakes, Inc. (collectively “Defendants”). The lawsuit mance of the program, as well as claimed that an effort known as Cooperatives Working Together (CWT) operated a Herd misrepresentations and omissions Retirement Program that was a conspiracy to reduce milk output that violated the law. The about the creamery’s business and Defendants deny doing anything wrong. The Court has not decided who is right. financial condition. Trickling Springs Creamery announced it Who is included? The Court decided that the Class includes all persons and entities in was ceasing operations in Septem- the United States that purchased butter and/or cheese directly from one or more Members ber 2019 and filed a bankruptcy of Defendant, Cooperatives Working Together and/or their subsidiaries, during the period petition in December 2019. from December 6, 2008 to July 31, 2013 who did not timely opt-out of the Class. Those The allegations constitute what that are included are called “Class Members.” To be a Class Member who could be eligible is sometimes referred to as “affin- for a payment, you must have purchased butter or cheese made by a CWT Member. If you ity fraud,” which typically involves are a consumer, you must have purchased butter or cheese made by a CWT Member at one investment scams that prey upon of the dairy co-op stores. Go to the website for a list of CWT Members along with their members of identifiable groups, store names and locations. such as religious or ethnic communities, according to a press release What does the settlement provide? The settlement provides that payments to Class from the US Attorney’s Office for Members will be allocated: 37% to the Butter Sub-Class, and 63% to the Cheese Sub-Class. the Eastern District of Pennsylva- Total payments will be $220 million plus interest, minus: attorneys’ fees and expenses; nia. payments to the Named Plaintiffs; notice and administration costs; and taxes. These types of scams exploit the What are your options? If you are a Class Member who received emailed or mailed trust and friendship that exist in Notice, you do not need to do anything at this time to be eligible to receive a payment. groups of people who share com- mon interests or beliefs. Once the Court has approved the Claim Form, a deadline will be set for Class Members The victims of Riehl’s alleged to submit claims. If you received a Notice in the mail, you will be mailed a Claim scheme were generally members of Form automatically. the Mennonite or Amish religious If you did not receive a Notice in the mail, and you think you are a potential Class communities who wanted a safe Member, please identify yourself or your company to the Settlement Administrator as a and secure investment, operated potential Class Member by letter to the following address: Butter and Cheese Class Action, within their community and in a PO Box 4290, Portland, OR 97208-4290, email to: [email protected], manner consistent with their religious principles, the press release or register on the website, so you can obtain a Claim Form, once it is available. As a Class noted. The charges note that Riehl Member, you will be bound by all orders and judgments of the Court. Unless you want to was a co-religionist in the Menno- object to the settlement, YOU DO NOT HAVE TO DO ANYTHING NOW. nite religious community. Instructions for objecting can be found at the website or by calling the toll-free number The case was investigated by below. You must mail your objection postmarked by March 17, 2020. The Court will hold the Federal Bureau of Investiga- a Fairness Hearing on April 27, 2020, to decide whether to approve the Settlement and tion, and is being prosecuted by any requests for fees and expenses. If there are objections, the Court will consider them Assistant United States Attorney Michael J. Rinaldi. at the hearing. You do not need to attend the hearing. If you wish to appear at the hearing, “So long as there are people you must ﬁle a “Notice of Intention to Appear” with the Court and you may hire your own with money to invest, there will attorney to appear in Court for you at your own expense. Detailed information is available be swindlers ready to take their at the website and toll-free number listed below. money under false pretenses,” said Michael T. Harpster, special agent 1-855-804-8574 • www.ButterandCheeseClassAction.com in charge of the FBI’s Philadelphia Division. For more information, visit www.ButterandCheeseClassAction.com Page 6 CHEESE REPORTER January 31, 2020

More Change “Fortunately for us, dairy has “We know that six in 10 con- products,” Dykes said. “Producers (Continued from p. 1) all these attributes. The opportu- sumers in the United States factor and processors must work together nity is in how we respond,” Dykes sustainability as a main driver of to unite our interests, share infor- tinued. Last year, Rogue River Blue said. “We need to make products purchasing decisions,” Dykes said. mation, grow our relationships, from Rogue Creamery took the top consumers want and embrace the “It’s time that we fully embraced and cultivate our leaders.” prize at the World Cheese Awards change they demand, making it dairy’s sustainability story — yet IDFA has created a new “People in Italy. easy for them to decide at the retail we’ve historically undersold these Strategy,” with three new, distinct The dairy business in the US at level to choose the quality, safety, results.” initiatives focused on leader- the consumer level “has never been and performance our products are IDFA’s sustainability efforts will ship development and building bigger, never been stronger, and it known for, giving us space to cre- focus on offering guidance and sup- a workforce for the future, Dykes continues to grow,” Dykes said. ate new, exciting ways to get it to port in five distinct areas, Dykes explained. IDFA’s NextGen Lead- “Dairy is highly relevant in the them, no matter where they live in said: animal care; products and ership Program is designed to marketplace. It is a flexible prod- the world.” materials sourcing; environmental support, guide, and prepare mid- uct able to maintain core attributes Embracing change will require stewardship; ensuring workforce senior-level dairy industry profes- of quality, taste, affordability, and the dairy industry to do three and workplace wellbeing; and har- sionals ready to take the next step nutrition, as it evolves with shift- things, Dykes said. First, “we must nessing information technology to intheir leadership journey. ing consumer preferences. Dairy take bold risks.” What he means create the conditions for contin- consumption is growing around is “we must continue to turn ued industry growth. Second, the dairy industry must the world, providing us with a sig- toward innovation as the solution, “We know that six nificant long-term opportunity as beginning on the farm, moving expand global markets and compe- emerging middle classes begin to throughout the supply chain to tition as part of its overall vision for in 10 consumers in the demand more protein.” embrace technology and sustain- growth, Dykes said. Two decades United States factor There is a “false narrative” that able solutions, and then updating ago, US dairy was almost 100 per- sustainability as a main the past decade has been bad for our business models to stay com- cent a domestic market, but over the last 15 years, US dairy exports driver of purchasing dairy, but in fact “just the oppo- petitive.” decisions. It’s time site is true,” Dykes said. Overall, Thanks to the efficiency of have nearly tripled, and the US is total per capita dairy consumption farmers and innovation through- now the world’s third-largest dairy that we fully embraced is up 6 percent. The product mix out the supply chain, the dairy products exporter. dairy’s sustainability is changing, but even as beverage industry produces twice as much USDA predicts that milk pro- story.” milk sales have declined, the dairy milk today as it did 50 years ago duction will grow another 15 per- industry has found ways to adapt with half as many dairy cows on cent by 2028. The dairy industry — Michael Dykes, IDFA to evolving consumer preferences. much less land, Dykes noted. Over will need to repeat the successes The top five consumer concerns the past 30 years, milk production of the early 2000s by pursuing two when selecting food and beverages has grown 51 percent while car- tracks simultaneously, Dykes said: are health, affordability, safety, sus- bon dioxide output has declined creating new products that con- Also, IDFA formally launched tainability and the ability to meet 9 percent. This efficiency cre- sumers want and creating opportu- the Women in Dairy Network at specific nutritional- or values- ates “astounding” sustainability nities to grow exports. Dairy Forum. The outpouring of based characteristics, Dykes said. impacts. The emerging story in exports interest in this “has been amazing. is no longer overall value, but in We already have 230 women who value-added products growing as a have expressed an interest in this  share of the export pool, he noted. 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Sid Wainer & Son Dairy Bills Backed is made by combining and further The CURD Act defines “natu- (Continued from p. 1) processing various natural cheeses ral cheese” by identifying the types Acquired By The to achieve certain characteristics of cheeses covered by the “natural types of imitation beverages on the desired by consumers. The term cheese” definition, as well as the Chefs’ Warehouse market,” Balmer added. “natural cheese” has been used permitted basic ingredients and Ridgefield, CT—The Chefs’ The proliferation of these imita- extensively over the years by FDA, processing techniques that would Warehouse, Inc., a specialty food tion products in the marketplace USDA, Congress and the courts be used to make a cheese that distributor based in Ridgefield, CT, has created “an abundance of con- to describe a particular category of meets the definition of “natural on Monday announced that it has sumer confusion,” Balmer said. cheese. cheese,” Carlin said. acquired substantially all of the While consumers generally under- “Unfortunately, the ability of The CURD Act is supported assets of Sid Wainer & Son, based stand that plant-based alternatives US cheese makers to continue to by all of IDFA’s cheese company in New Bedford, MA. do not contain dairy, evidence use the term ‘natural cheese’ on members, including those that For over 100 years, Sid Wainer shows that consumers think plant- their packaging is now threat- manufacture process cheese prod- & Son has been curating and dis- based products are nutritionally ened,” Carlin said. Four years ago, ucts, Carlin noted. tributing specialty products and equal to or better than cow’s milk. FDA initiated a separate process to The bill is also supported by the produce in the Northeast. The NMPF has repeatedly raised define how the term “natural” may National Milk Producers Federa- company has over 13,000 specialty concerns with FDA regarding its be used to make product claims tion, as well as several state dairy sku’s, including numerous domes- failure to enforce the law when such as “all natural.” organizations. tic and imported cheeses, as well as non-dairy products co-opt terms Even though the term “natural Sarah Sorscher, deputy direc- specialty butter, yogurt and other like “milk” and “cheese,” and was cheese” isn’t a product claim and tor of regulatory affairs for the dairy products. encouraged when former FDA is only used to define a particu- Center for Science in the Public “My grandfather started the Commissioner Scott Gottlieb lar category of cheese, US cheese Interest (CSPI), testified in oppo- company in New Bedford, MA, announced in 2018 that FDA makers “find themselves caught sition to the CURD Act, saying in 1914. From its inception, the would finally begin to look at this up in an unrelated policy debate the bill “would confuse consumers Wainer family has sourced produce issue, Balmer noted. that could force them to change by defining as ‘natural’ any cheese from the world’s finest farms,” said In February 2019, NMPF filed decades worth of labeling practices product that does not meet the Henry Wainer, CEO and presi- a citizen petition asking FDA to that generations of consumers have narrow regulatory definition of dent of Sid Wainer & Son. “As enforce its existing rules against come to rely on when choosing the ‘process cheese’.” the company developed, my fam- nutritionally inferior plant-based right cheese for every occasion,” Instead of protecting con- ily and I traveled nationally and foods and to modify and refine Carlin said. sumer interests, the interests the internationally meeting and build- these rules to address issues such as Defining the term “natural bill addresses “are those of cheese ing relationships with growers, spe- the consideration of protein qual- cheese” in statute “will clarify its manufacturers, who wish to be cialty foods and cheese producers, ity when determining nutritional specific meaning and narrow the sheltered from litigation by con- broadening our diversification and inferiority. scope of FDA’s work so that it sumers alleging they were misled sourcing the highest quality pro- “While we were encouraged can focus on how the term ‘natu- by ‘natural’ claims on cheese that duce and specialty foods for chefs that FDA would take long-overdue ral’ may be used to make product contains artificial ingredients,” across America. action, it is clear that the timeline claims.” Sorscher said. “We are excited to be able to for such action is continually shift- broaden our distribution network ing, with no end in sight,” Balmer and offer four generations of pro- said. “2019 came and went with no DELIVERING LEADING EDGE SOLUTIONS duce knowledge to The Chefs’ FDA action; this needs to be the Warehouse team,” Wainer con- year the job gets done.” TO THE BEST IN THE DAIRY AND FOOD INDUSTRY tinued. “The combination of The While NMPF will continue to Chefs’ Warehouse distribution net- press for FDA to enforce its own work and quality in conjunction rules, “we believe the time has with Sid Wainer & Son’s unique come for Congress to take legis- specialty ingredients and expertise lative action,” Balmer said. The in the produce industry will pro- DAIRY PRIDE Act doesn’t create vide an unprecedented service for a new definition of milk, but rather chefs. We are very excited to grow establishes explicit conditions APT’s ADVANCED FINISHING VAT (AFV) our futures together.” under which FDA must explain “I would like to welcome the how and when it will enforce dairy FROM OUR INNOVATIVE LINE OF CHEESEMAKING EQUIPMENT. Wainer family and the entire Sid food standards of identity. Wainer & Son organization into “Let me be clear: We do not our growing family of companies,” oppose the sale of imitation dairy commented Christopher Pappas, products, but we do oppose their chairman and CEO of The Chefs’ use of dairy terms in violation of Warehouse, Inc. “This acquisi- provisions specified in the Code of tion offers The Chefs’ Ware- Federal Regulations,” Balmer said. house the opportunity to build Dairy farmers aren’t seeking to New England’s premier specialty eliminate competition from these food company. We look forward products; they just want the existing regulations enforced. The Advanced Finishing Vat (AFV), manufactured by APT, was to leveraging Sid Wainer & Son’s designed for customers requiring the flexibility of an enclosed incredible product lines and pro- Defining ‘Natural Cheese’ multi-use finishing table for all varieties of cheeses. duce expertise to offer the market David Carlin, senior vice presi- exceptional assortment. dent, legislative affairs and eco- We understand the commitment you make when purchasing new “For 35 years, we have prided nomic policy, IDFA, testified at finishing vats and our team is committed to work with you to achieve ourselves in supplying the world’s the hearing in support of the Codi- the optimum results of the AFV. greatest ingredients to North fying Useful Definitions (CURD) America’s best chefs; this acquisi- Act, which would establish a defi- Leverage your flexibility with APT’s advanced features which include tion deepens this commitment,” nition of the term “natural cheese” agitation,traverse, salting, and unloading as well as a Controls & Pappas added. in federal statute. Automation package to optimize performance and reduce labor costs. The Chefs’ Warehouse carries US cheese makers have used and distributes more than 55,000 the term “natural cheese” for more products to more than 34,000 cus- than 70 years to describe a particu- ADVANCED PROCESS TECHNOLOGIES, INC. tomer locations throughout the lar category of cheese and to differ- Engineering | Fabrication | Controls | Installation US and Canada. entiate it from “process cheese” in For more information on the the supermarket, Carlin explained. www.APT-INC.com | An Employee Owned Company company, visit www.chefsware- Natural cheeses are made directly house.com. from milk, while process cheese For more information, visit www.APT-Inc.com Page 8 CHEESE REPORTER January 31, 2020

Mikhalevsky Receives IDFA Laureate Award; Wilkin, Frye Also Recognized Scottsdale, AZ—Several dairy standard across the industry,” said industry leaders were lauded here John Allan, IDFA vice president of this week at the International regulatory affairs and international Dairy Foods Association’s (IDFA) standards. annual Dairy Forum. “Edith is a unique and influen- Andrei Mikhalevsky, former tial food safety expert who shares president and CEO of California her knowledge and science-based Dairies, Inc. (CDI), received the food safety insights with colleagues inaugural IDFA Laureate Award, and mentees across the dairy indus- bestowed upon a leader who has try,” Allan continued. made significant, prolonged contributions to the development and Cary Frye’s Career Honored growth of the dairy industry. Also at the Dairy Forum, IDFA Mikhalevsky’s career spans more recognized and celebrated the than 40 years, and he has held a career of Cary Frye, IDFA’s senior Andrei Mikhalevsky (center), who recently retired as president and CEO of California Dairies, vice president for regulatory affairs. Inc., received the inaugural IDFA Laureate Award at the 2020 Dairy Forum in Scottsdale, AZ, variety of leadership positions this week. He was presented with the award by Dan Zagzebski (left), of Great Lakes Cheese, within the dairy industry. Prior to Frye, who plans to retire at the chairman of the IDFA Executive Council; and Michael Dykes, IDFA’s president and CEO. joining CDI, he served as the man- end of June, leads IDFA’s regulatory team covering the areas of aging director of global ingredients ily of Ohio. responsible environmental stew- and foodservices at Fonterra Coop- food safety, food defense, federal standards of identity, labeling, The award was accepted by co- ardship, sustainable community erative Group Ltd. Before joining owners of MVP Dairy, Kyle Van- engagement, and a safe work envi- Fonterra, Mikhalevsky held execu- international Codex standards, nutrition policy, and environmen- Tilburg and Clay McCarty. Using ronment for its 35 employees. tive positions at Campbell Soup best management practices, the Milk from MVP Dairy is Non- Company, Georgia Pacific Corp. tal and worker safety. She has been with IDFA for more than 20 years. farm strives to achieve the high- GMO Project Verified and sold to and Symrise Inc. He was named est standards in animal welfare, Danone North America. president and CEO of CDI, the Frye is an active participant in nation’s second largest dairy pro- the International Dairy Federation cessing cooperative, in 2011 and (IDF), chaired the US affiliate to Mike Neu, Chr. Hansen, Inc.; and retired at the end of 2019. IDF and is a member of the IDF IDFA Also Names Chris Olsen, Tate & Lyle Ingredi- Mikhalevsky currently serves as Standing Committee on Standards New Members Of ents Americas LLC a director on the IDFA Executive of Identity and Labeling. She has Council and as chair of the IDFA been active in international stan- Executive Council, IDFA Fluid Milk Board Dairy Ingredients Board. dard-setting, advising US delega- Chair, Jeffrey Kaneb, HP Hood “In selecting Andrei for this tions on Codex standards, and has Board Directors LLC; and vice chair, Ed Mullins, award, our panel recognized a served as the head delegate for IDF Washington—IDFA announced Prairie Farms Dairy, Inc. New true leader and innovator in the at the Codex Committee on Food members of the its Executive additions include Bonnie Chan, dairy industry, a professional who Labeling. She has also served on Council as well as new directors for Crystal Creamery, and Kristi Kan- is respected by peers and competi- the National Conference on Inter- the group’s five Industry Segment gas of Readington Farms, Inc. The tors alike, and a partner and ally to state Milk Shipments’ executive Boards during the Dairy Forum. board’s Gold Business Partner is anyone working on behalf of suc- board and liaison committee. The five Industry Segment Randi Muzumdar of INTL FCS- cessful, sustainable dairy industry,” “Cary’s personal fortitude, Boards represent fluid milk, ice tone Inc. said Michael Dykes, president and integrity and knowledge of dairy cream, cheese, yogurt and cultured CEO of IDFA. labeling and regulation are simply products, and dairy-derived ingre- IDFA Ice Cream Board unapproached in our industry,” dients. Chair, Mike Wells, Wells Enter- Food Safety Leadership Award Dykes said. prises, Inc., and vice chair, Rich Edith Wilkin of Leprino Foods IDFA Executive Council Members, Draper, The Ice Cream Club, Inc. Company of Denver, CO, received Innovative Farmer Of The Year Terms Ending January 2021 Additions include Timothy Hop- the fourth annual IDFA Food Finally, MVP Dairy, LLC of Celina, Chair, Dan Zagzebski, Great Lakes kins of Turkey Hill Dairy, Inc., Safety Leadership Award for dem- OH, was recognized as the Innova- Cheese Co., Inc.; vice chair, David and Gold Business Partner Murray onstrating outstanding leadership tive Dairy Farmer of the Year. Ahlem, Hilmar Cheese Company, Bain, Stanpac. directed at enhancing food safety The award celebrates US dairy Inc.; secretary: Stan Ryan, Dari- IDFA Cheese Board within the dairy products industry. producers who embrace innovation gold, Inc.; and treasurer, David Chair, Louie P. Gentine, Sargento Wilkin serves as staff vice presi- and technology, sustainable prac- Nelsen, Albertsons Companies. Foods, and vice chair, Doug Simon, dent and fellow, food safety and tices, as well as industry collabora- Directors include: Jay Bry- Agropur US. Additions are Pat- regulatory compliance, for Leprino. tion and partnerships to achieve ant, Maryland and Virginia Milk rick Criteser, Tillamook County “Edith not only served as chair greater on-farm productivity and Producers Cooperative Associa- Creamery Association; Bill Gra- of the Food Safety Initiative with make important contributions to tion, Inc.; Peter Cotter, The Kraft ham, Bel Brands USA, Inc.; and the Innovation Center for US the future of the dairy industry. Heinz Company; Tim Galloway, Neal Schuman, Schuman Cheese. Dairy during its inception; she MVP Dairy is a partnership Galloway Company; Douglas Glade, Dairy Farmers of America, also led, developed and published between two, fourth-generation Yogurt, Cultured Products Board Inc.; Ken Jorgensen, H-E-B; Jerry traceability standards for dairy pro- farm families: the McCarty family Chair, Philippe Caradec, Danone Kaminski, Land O’Lakes, Inc.; cessors that have become the gold of Kansas and the VanTilburg fam- North America, and vice chair, Scott McGinty, Aurora Organic Tim Walls, Schreiber Foods. New Dairy; Tom Murphy, Brewster are Jorge Ramos, LALA US; and Cheese Company; Brian Phelan, Gold Business Partner: Patrick We look at cheese differently. Glanbia Nutritionals, Glanbia plc; Carroll of IMA Dairy & Food. Shelley Roth, Pierre’s Ice Cream Company; Greg Schlafer, Fore- IDFA Ingredients Board most Farms USA; Erin Sharp, The Chair, Andrei Mikhalevsky, Cali- Kroger Co.; Patricia Stroup, Nestle fornia Dairies, Inc., and vice chair, S.A.; Sue Taylor, Leprino Foods Terry Brockman, Saputo Cheese Company; and Lawrence Webster, USA Inc. Additions include Keith Upstate Niagara Cooperative, Inc. Murfield, United Dairymen of Ari- ...because we don’t just Executive Council Gold Busi- zona; Vinith Poduval, Schreiber see cheese, we see the ness Partner Representatives are: Foods, Inc.; and William Sch- whole picture. Dale Andersen, Delkor Systems, reiber, O-AT-KA Milk Products 1.866.404.4545 www.devilletechnologies.com Inc.; Mary Ledman, Rabobank; Cooperative, Inc.

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$1.25 2017 – Current WPC Prices Since 2012DAIRY FUTURES PRICES SETTLING PRICE *Cash Settled $1.15 High/Low Range (Edible 34% Central and West) Date Month Class Class Dry Block III IV Whey NDM Cheese Cheese* Butter* $1.05 1-24 Jan 20 17.04 16.71 33.850 124.450 — 1.8060 193.525 1-27 Jan 20 17.04 16.71 33.775 124.150 — 1.8080 193.275 1-28 Jan 20 17.04 16.71 33.775 124.150 — 1.8080 193.275 $0.95 1-29 Jan 20 17.06 16.71 33.775 124.475 — 1.8100 193.275 1-30 Jan 20 17.05 16.71 33.525 124.300 — 1.8090 192.925 $0.85 1-24 Feb 20 18.00 17.12 35.500 127.600 1.9630 1.8970 195.650 1-27 Feb 20 17.33 17.07 35.300 126.950 1.9340 1.8260 195.500 $0.75 1-28 Feb 20 17.39 16.86 36.175 127.000 1.9340 1.8330 190.500 1-29 Feb 20 17.64 16.77 36.550 126.900 1.9340 1.8570 188.825 1-30 Feb 20 17.34 16.85 36.000 126.725 1.9340 1.8250 191.900 $0.65 1-24 Mar 20 18.25 17.36 38.250 128.650 1.9470 1.8990 201.000 1-27 Mar 20 17.68 17.22 37.500 127.475 1.8930 1.8460 199.250 $0.55 1-28 Mar 20 17.73 17.14 38.250 127.500 1.8930 1.8480 194.250 1-29 Mar 20 17.98 16.99 39.075 127.300 1.9060 1.8760 193.575 1-30 Mar 20 17.76 16.89 38.250 126.050 1.9010 1.8520 195.500

Manufacturers’ Stocks of 1-24 Apr 20 18.00 17.66 40.625 130.000 1.8880 1.8540 205.275 Manufacturers’ Stocks of 1-27 Apr 20 17.52 17.46 40.000 128.175 1.8540 1.8140 203.650 WPC – 50 – 89.9% WPI 1-28 Apr 20 17.59 17.40 41.100 128.100 1.8420 1.8140 200.400 End of Nov; Select Years; million lbs End of Nov; Select Years, million lbs 1-29 Apr 20 17.82 17.20 41.100 127.800 1.8640 1.8400 197.825 1-30 Apr 20 17.63 17.07 40.200 126.175 1.8640 1.8220 198.625 60 30 1-24 May 20 17.82 17.99 41.500 131.450 1.8650 1.8300 209.500 1-27 May 20 —17.42 17.81 41.500 129.450 1.8360 1.8010 207.600 1-28 May 20 17.49 17.74 42.000 129.700 1.8260 1.8000 205.000 50 1-29 May 20 17.70 17.51 42.000 129.225 1.8410 1.8170 202.275 25 1-30 May 20 17.50 17.47 41.950 127.825 1.8410 1.8070 202.750

40 1-24 June 20 17.82 18.20 41.900 132.650 1.8720 1.8370 212.250 1-27 June 20 17.50 18.04 41.000 131.075 1.8300 1.8040 210.475 20 1-28 June 20 17.53 17.96 42.000 131.225 1.8330 1.8020 208.475 1-29 June 20 17.75 17.79 42.000 131.925 1.8420 1.8190 205.325 30 1-30 June 20 17.57 17.65 42.000 128.425 1.8420 1.8170 205.475

1-24 July 20 17.97 18.30 42.700 133.250 1.8800 1.8400 213.425 15 1-27 July 20 17.67 18.20 42.150 131.775 1.8450 1.8190 212.200 20 1-28 July 20 17.72 18.13 42.725 132.000 1.8450 1.8190 210.725 1-29 July 20 17.91 18.03 42.000 132.200 1.8560 1.8300 208.000 1-30 July 20 17.72 17.89 43.325 130.000 1.8560 1.8270 208.250 10 10 2013 2015 2017 2019 2013 2015 2017 2019 1-24 Aug 20 18.00 18.36 43.500 133.650 1.8800 1.8440 214.175 1-27 Aug 20 17.79 18.35 42.525 132.950 1.8520 1.8220 213.900 1-28 Aug 20 17.76 18.27 43.125 132.225 1.8520 1.8250 212.375 HISTORICAL MILK PRICES - CLASS IV 1-29 Aug 20 17.96 18.22 43.125 132.200 1.8650 1.8350 211.175 1-30 Aug 20 17.81 18.00 43.125 131.300 1.8650 1.8350 210.650 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1-24 Sept 20 18.08 18.42 44.200 134.100 1.8730 1.8430 215.075 ‘16 13.31 13.49 12.74 12.68 13.09 13.77 14.84 14.65 14.25 13.66 13.76 14.97 1-27 Sept 20 17.90 18.42 42.650 133.550 1.8650 1.8300 215.225 ‘17 16.19 15.59 14.32 14.01 14.49 15.89 16.60 16.61 15.86 14.85 13.99 13.51 1-28 Sept 20 17.85 18.38 43.300 133.250 1.8700 1.8290 213.750 ‘18 13.13 12.87 13.04 13.48 14.57 14.91 14.14 14.63 14.81 15.01 15.06 15.09 1-29 Sept 20 18.01 18.28 43.725 133.250 1.8660 1.8400 212.550 ‘19 15.48 15.86 15.71 15.72 16.29 16.83 16.90 16.74 16.35 16.39 16.60 16.70 1-30 Sept 20 17.96 18.22 43.725 132.125 1.8660 1.8400 212.000 1-24 Oct 20 18.04 18.40 43.625 134.300 1.8750 1.8400 214.300 1-27 Oct 20 17.87 18.40 43.250 134.175 1.8680 1.8300 214.575 DAIRY PRODUCT SALES $2.35 500-Pound 1-28 Oct 20 17.87 18.31 43.550 133.475 1.8660 1.8270 214.025 $2.25 Barrel Avg 1-29 Oct 20 17.93 18.31 43.550 133.475 1.8660 1.8330 212.500 $2.15 January 29, 2020—AMS’ National Dairy *Adjusted to 38% moisture 1-30 Oct 20 17.91 18.28 43.550 132.575 1.8660 1.8350 212.650 $2.05 Products Sales Report. Prices included $1.95 are provided each week by manufacturers. 1-24 Nov 20 18.00 18.38 43.750 134.825 1.8700 1.8260 213.500 $1.85 1-27 Nov 20 17.87 18.38 43.250 134.600 1.8680 1.8280 214.450 Prices collected are for the (wholesale) $1.75 point of sale for natural, unaged Cheddar; 1-28 Nov 20 17.81 18.30 43.250 133.850 1.8580 1.8210 213.000 $1.65 1-29 Nov 20 17.85 18.30 43.250 133.850 1.8580 1.8230 213.000 boxes of butter meeting USDA standards; $1.55 1-30 Nov 20 17.82 18.30 43.250 133.100 1.8580 1.8250 212.250 Extra Grade edible dry whey; and Extra $1.45 Grade and USPH Grade A nonfortified $1.35 Interest - 18,974 8,915 2,022 8,981 51 18,053 11,526 CME vs AM S* NFDM. •Revised $1.25 Jan. 30

$1.15 J F M A M J J A S O N D J Jan. 25 Jan. 18 Jan. 11 Jan. 4 40-Pound Block Cheddar Cheese Prices and Sales Weighted Price Dollars/Pound US 1.8995 1.8890• 1.8765 1.8873 Sales Volume Pounds US 11,652,166 11,936,266• 13,406,607 12,004,252 500-Pound Barrel Cheddar Cheese Prices, Sales & Moisture Contest Weighted Price Dollars/Pound US 1.7328 1.7707 1.8022 1.8439 Adjusted to 38% Moisture US 1.6484 1.6858 1.7115 1.7511 Sales Volume Pounds US 12,085,004 11,240,423 12,704,097 12,715,515 Weighted Moisture Content Percent US 34.83 34.88 34.71 34.71 Butter Weighted Price Dollars/Pound US 1.9009 1.9549 1.9206 1.9850• Sales Volume Pounds US 3,976,360 2,412,583• 5,579,224 3,575,151• TRUSTED SOLUTIONS Dry Whey Prices Since the 1800s, Kusel has been manufacturing high quality cheese Weighted Price Dollars/Pounds making equipment that’s built to last. at’s why large-scale industry US 0.3409 0.3342 0.3254• 0.3339 Sales Volume leaders and smaller artisanal makers trust us time and again. With an US 5,443,039 6,634,651 7,799,058 3,506,400 established line of equipment, and our experienced team at your Nonfat Dry Milk service, you can count on Kusel. Average Price Dollars/Pound 920.261.4112 US 1.2474 1.2427 1.2349• 1.2356• uselEquipment.com Sales Volume Pounds Sales@ uselEquipment.com US 21,481,197 25,038,765 17,862,625• 10,875,297•

January 31, 2020 CHEESE REPORTER Page 11

DAIRY PRODUCT MARKETS NATIONAL - CONENTIONAL DAIRY PRODUCTS AS REPORTED BY THE US DEPARTMENT OF AGRICULTURE The total number of organic dairy product ads decreased 9 percent. The Super Bowl is this weekend. Party food favorites include many dairy products ingredients. Conventional cream cheese in 8-ounce containers was the most advertised dairy product this week, with a 65 WHOLESALE CHEESE MARKETS percent increase in ad numbers. NATIONAL - JAN. 24: Milk into cheese vats remains available for active production rates The average price for conventional 8-ounce block cheese is $2.35, and the weighted aver- throughout the country. Prices on the spot milk market ranged from Class III to $1.50 under age price for conventional 8-ounce shred cheese is $2.24. Conventional butter ad numbers Class. In comparison, last year’s range was $.50 under to $1 over, while the range was are unmoved from last week. The average price for conventional 1-pound butter packages is larger in 2018: $3 under to $1 over Class III. Cheese barrels are more accessible accord- $3.69, compared to $5.49 for organic 1-pound butter packages. The average advertised price ing to western contacts, but midwestern barrel cheese mongers relay steady demand has for conventional yogurt in 32-ounce containers is $3.02, compared to $3.87 for organic yogurt kept their inventories in check, regionally. They are currently off-loading holiday-produced in 32-ounce containers, resulting in an organic premium of 85 cents. inventories. Cheese market tones are gaining a little ground after what has been a capricious start to the year, as block prices rolled over $2 this week. That said, the block-over-barrel The average advertised price for conventional milk in half-gallons is $1.45, compared to $3.86 price gap reached over $.40 last week. Marketers expect the historically large price chasm to for organic milk half-gallons, resulting in an organic premium of $2.41. Conventional milk ads diminish. The question remains as to how the price gap shores itself up: whether it be block increased by 55 percent, but organic milk ads decreased by 6 percent. Milk in half-gallon pack- prices decreasing, barrel prices increasing, or a culmination of the two. ages are the most advertised organic item this week.

NORTHEAST- JAN. 29: Cheese processing is stable in the Northeast. Some manufacturers’ inventories are adequate for contract and spot load requests. This week, cheese spot RETAIL PRICES - CONVENTIONAL DAIRY - JANUARY 31 prices have gone down on various market exchanges. On the CME Group, here is a large Commodity US NE SE MID SC SW NW price gap between block and barrel Cheddar cheese. Butter 1# 3.69 3.96 3.99 2.76 3.74 3.99 3.49 Wholesale prices, delivered, dollars per/lb: 2.35 2.27 2.50 1.89 2.06 2.99 2.99 Cheddar 40-lb blocks: $2.4475 - $2.7350 Process 5-lb sliced: $1.7700 - $2.2500 Cheese 8 oz block Muenster: $2.4350 - $2.7850 Swiss Cuts 10-14 lbs: $3.5375 - $3.8600 Cheese 1# block 3.66 4.70 NA 2.99 3.41 NA NA Cheese 2# block 6.13 5.99 NA NA NA 5.99 6.50 MIDWEST AREA - JAN. 29: Midwestern cheese makers report few changes on top of last week. So far, 2020 sales are meeting or beating expectations. As cheese markets Cheese 8 oz shred 2.24 2.32 2.27 1.99 2.14 2.50 1.99 remain in flux because of the large block-barrel price chasm, regional demand for both blocks Cheese 1# shred 4.46 4.99 4.99 3.11 NA NA NA and barrels is anything but unstable. Milk prices are holding just under Class for the most Cottage Cheese 1.99 2.36 2.16 1.80 2.00 1.99 NA part, on slow trading. Stocks are generally balanced regionally, as well. Although national Cream Cheese markets are flummoxed, midwestern cheese industry conditions are mostly positive. 1.93 1.73 1.98 2.10 1.96 2.26 1.50 Flavored Milk ½ gallon 2.21 NA NA 2.50 NA 1.99 NA Wholesale prices delivered, dollars per/lb: Flavored Milk gallon 3.84 NA NA 4.62 NA NA 1.99 Brick 5# Loaf: $2.3625 - $2.7875 Cheddar 40# Block: $2.0850 - $2.4850 Ice Cream 48-64 oz Monterey Jack 10#: $2.3375 - $2.5425 Mozzarella 5-6#: $2.1625 - $3.1075 3.12 3.10 3.09 2.82 3.46 3.22 3.49 Muenster 5# $2.3625 - $2.7875 Process 5# Loaf: $1.7000 - $2.0600 Milk ½ gallon 1.45 NA .99 1.11 NA 1.99 1.39 Grade A Swiss 6-9#: $3.0525 - $3.1700 Blue 5# Loaf: $2.6300 - $3.7000 Milk gallon 2.84 NA NA NA 3.49 NA 1.99

WEST - JAN. 29: Western cheesemaking continues at a brisk pace due to ample amounts Sour Cream 16 oz 1.95 1.95 1.99 1.62 1.92 1.97 1.50 of available milk. Industry contacts say demand is moderate, seemingly not willing to declare Yogurt (Greek) 4-6 oz .98 1.00 1.00 .87 .92 1.00 NA it either as good or bad. Cheese is moving well through current contracts, but there is a Yogurt (Greek) 32 oz 4.16 4.28 4.28 3.66 3.50 NA NA capacity to sell more cheese. Retail and foodservice shipments for the national cheese day, Yogurt 4-6 oz also known as the Super Bowl, have been made. Contacts are hoping for strong reorders to .49 .50 .44 .56 .49 .39 .50 carry the cheese market into spring and the distant grilling season. The cold storage report Yogurt 32 oz 3.02 3.04 2.99 2.50 NA NA NA released last week suggested that total cheese inventories were pulled down a bit nation- US: National Northeast (NE): CT, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VT; wide. However, western cheese inventories did not follow that pattern. In the West, American Southeast (SE): AL, FL, GA, MD, NC, SC, TN, VA, WV; Midwest (MID): IA, IL, IN, cheese stocks grew and other natural cheese inventories were fairly stable. KY, MI, MN, ND, NE, OH, SD, WI; South Central (SC): AK, CO, KS, LA, MO, NM, Wholesale prices delivered, dollars per/lb: Cheddar 10# Cuts: $2.3225 - $2.5225 OK, TX; Southwest (SW): AZ, CA, NV, UT; Northwest (NW): ID, MT, OR, WA, WY Cheddar 40# Block: $2.0750 - $2.5650 Monterey Jack 10#: $2.3100 - $2.5850 Process 5# Loaf: $1.7175 - $1.9725 Swiss 6-9# Cuts: $3.1350 - $3.5650 ORGANIC DAIRY - RETAIL OVERVIEW FOREIGN -TYPE CHEESE - JAN. 29: The inventory turnover rate for German sliced National Weighted Retail Avg Price: Yogurt 32 oz: $2.77 cheese is high. As so, stocks of cheese are low and of a young age structure. Extensive Butter 1 lb: $5.29 Greek Yogurt 32 oz: NA international and domestic orders are being placed, which, according to market players, is Cheese 8 oz shred: $2.99 Milk ½ gallon: $3.57 quite unusual for this time of the year. Sliced cheese offers are just enough to fill scheduled Cheese 8 oz block: NA Milk gallon: $5.87 demands. Current short-term contractual sales are above that of the previous month. Overall, Cream Cheese 8 oz: $2.76 UHT Milk 8 oz: $0.87 the market tone is strong. Sliced cheese prices have increased to match the discrepancy Yogurt 4-6 oz: $1.32 Ice Cream 48-64 oz: $5.99 between lower supplies and solid requests.

Selling prices, delivered, dollars per/lb: Imported Domestic DRY DAIRY PRODUCTS - JANUARY 30 Blue: $2.6400 - 5.2300 $2.5075 - 3.9950 NDM - CENTRAL: Low/medium heat coming from Mexico. Production remains Gorgonzola: $3.6900 - 5.7400 $3.0150 - 3.7325 NDM prices shifted higher on the bottom seasonally strong as well. High heat nonfat Parmesan (Italy): 0 $3.8950 - 5.9850 of the range, while holding steady on the dry milk prices have increased at the top Romano (Cows Milk): 0 $3.6975 - 5.8525 mostly price series this week. Lower prices of the range. Processing is still restricted Sardo Romano (Argentine): $2.8500 - 4.7800 0 are starting to trend higher, but generally due to the prioritization of low/medium heat Reggianito (Argentine): $3.2900 - 4.7800 0 market tones are steady. Production has nonfat dry milk production. Although spot Jarlsberg (Brand): $2.9500 - 6.4500 0 been somewhat active with the availabil- requests for high heat nonfat dry milk are lower, stocks are barely sufficient to satisfy Swiss Cuts Switzerland: 0 $3.5750 - 3.8975 ity of condensed skim. That being said, the needs. Swiss Cuts Finnish: $2.6700- 2.9300 0 demand has held inventories in check and helped keep markets sturdy. Prices for high heat NDM shifted higher on the top of the NDM - EAST: Nonfat dry milk prices are WHOLESALE BUTTER MARKETS - JANUARY 29 range. Undoubtedly, high heat NDM’s mar- steady to higher. The current NDM environ- ket tones are mixed, but more signs point ment mix, to a degree, represents the mod- WEST: The western butter market is expe- cream is widely available from the western to bullishness. Region to region, prices and erate domestic demand and overall good riencing some pressures, partly caused by region, the mountain states, and locally. That availability are variant. demand from direct export sales for future abundant stocks of butter and not so much being said, churning is mixed. As some butter delivery, but less than capacity output for demands. Although orders from retailers are producers continue to run full bore, locking NDM - WEST: In the West, low/medium some NDM manufacturers. Hence, f.o.b. stable, international sales seem almost idle. away stores for the spring, others say they heat NDM prices are trending higher at spot offerings this week led to market activ- In the domestic market, lower prices have are checking production activity owing to both the bottom of the range, but declined a bit ity that prompted a tiptoe higher in prices on impelled some people to buy more butter for scant seasonal demand and current market at the top. The prices held steady on the the bottom of the price range. Overall, pro- short-term coverages. However, other end bearishness. Generally, butter market tones mostly series. Spring baking needs are duction of low/medium heat NDM is steady, users/buyers are taking a step back as they are in rare form: not meeting expectations. inciting some buyers to take on more low/ with most inventories listed as balanced. believe that butter will be available for some medium heat nonfat dry milk. In addition, High heat NDM prices are unchanged to time, and prices could potentially decline. NORTHEAST: Ample cream is accessible due to most of the production being con- higher. With seasonal demand develop- Cream supplies are widely accessible to but- and prices are relatively inexpensive, which tracted, low/medium heat nonfat dry milk ments, some manufacturers are actively ter makers at affordable prices. As so, but- supports regional production levels that supplies are just enough to satisfy spot drying high heat NDM this week, which termaking is ongoing. On one hand, some compare to the past week. Most manufac- needs. Some sellers report that their inven- should increase the f.o.b. spot market avail- processors who usually sell their cream are turers are feeling pretty good about churning tories are less than a month old. Interna- ability. As for now, availability of high heat churning it in-house instead of selling at and storing butter at current multiples. Some tional demands are solid, especially those NDM stocks in eastern cash markets pales. lower multiples. On the other hand, other balancing plants that had not been churning producers don’t have much incentives to previously are churning this week. Consider- make more butter due to lower profit margins ing the copious availability of cream, some generated from sales. Bulk butter overages sources think the current bearish market feel WEEKLY COLD STORAGE HOLDINGS are a bit down compared to the past week. could linger for the near term. Meanwhile, as SELECTED STORAGE CENTERS IN 1,000 POUNDS - INCLUDING GOVERNMENT butter supplies outpace demand, on mixed DATE ...... BUTTER CHEESE CENTRAL: Butter plant managers face interest, the market notes marginal growth a daedal task in light of the current market in regional butter stocks. Orders for the food- 01/27/20 ...... 61,378 69,884 situation. To churn or not to churn, pardon service sector are light to steady. Bulk but- 01/01/20 ...... 50,940 74,756 the literary reference, is the question. Cream ter sells range 4-7 over, in the spot market, Change ...... 10,438 -4,872 availability is abundant. Central contacts relay based on the CME. Percent Change...... 20 -7 Page 12 CHEESE REPORTER January 31, 2020

increase between December 2018 CME CASH PRICES - JANUARY 27 - 31, 2020 Restaurant and December 2019, down from 68 Visit www.cheesereporter.com for daily prices Performance Index percent who reported higher sales 500-LB 40-LB AA GRADE A DRY in November. CHEDDAR CHEDDAR BUTTER NFDM WHEY Fell 0.7% In Dec.; Restaurant operators also MONDAY $1.6100 $1.9325 $1.8200 $1.2800 $0.3650 reported softer customer traffic lev- January 27 (NC) (-6¼) (-4) (-¾) (NC) Same-Store Sales, els in December. TUESDAY $1.5900 $1.9200 $1.7750 $1.2750 $0.3750 January 28 (-2) (-1¼) (-4½) (-½) (+1) Traffic Softened Some 34 percent of operators WEDNESDAY $1.5900 $1.9200 $1.8075 $1.2675 $0.3850 Washington—The National Res- reported an increase in customer January 29 (NC) (NC) (+3¼) (-¾) (+1) taurant Association’s Restaurant traffic between December 2018 THURSDAY $1.5000 $1.9200 $1.8600 $1.2625 $0.3750 and December 2019, down from January 30 (-9) (NC) (+5¼) (-½) (-1) Performance Index (RPI) stood at 101.1 in December, down 0.7 per- 49 percent who reported traffic FRIDAY $1.5000 $1.9200 $1.9000 $1.2400 $0.3650 growth in November. January 31 (NC) (NC) (+4) (-2¼) (-1) cent from November, the association reported today. The Expectations Index, which Week’s AVG $1.5580 $1.9225 $1.8325 $1.2650 $0.3730 measures restaurant operators’ Change (-0.0576) (-0.0688) (-0.0356) (-0.0275) (+0.0117) The RPI is constructed so that the health of the restaurant indus- six-month outlook for four indus- Last Week’s $1.61563 $1.99125 $1.86813 $1.2925 $0.36125 try indicators (same-store sales, AVG try is measured in relation to a neutral level of 100. Index values employees, capital expenditures 2019 AVG $1.2755 $1.4610 $2.2835 $1.0095 $0.3885 and business conditions), stood Same Week above 100 indicate that key industry indicators are in a period of at 101.8 in December, up slightly expansion, while values below 100 from November. MARKET OPINION - CHEESE REPORTER represent a period of contraction Restaurant operators are somewhat more optimistic about sales Cheese Comment: No blocks were sold Monday; the price dropped on an uncov- for key indicators. ered offer of 1 car at $1.9325. The block price fell Tuesday on an uncovered offer of The RPI consists of two compo- growth than they were in recent 1 car at $1.9200. No blocks were sold Wednesday or Thursday and the price was nents: the Current Situation Index months. Some 45 percent of opera- unchanged both days. There was no block market activity at all on Friday. The bar- and the Expectations Index. tors expect to have higher sales in rel price declined Tuesday on a sale at $1.5900, then dropped Thursday on a sale The Current Situation Index, six months (compared to the same at $1.5000. which measures current trends in period in the previous year), which Butter Comment: The price declined Monday on sale at $1.8200, dropped Tuesday four industry indicators (same- was roughly on par with 46 percent on a sale at $1.7750, increased Wednesday on a sale at $1.8075, jumped Thursday store sales, traffic, labor and capi- who reported similarly in Novem- on a sale at $1.8600, and rose Friday on a sale at $1.9000 (28 cars of butter were ber. sold Friday). The average butter price for January was 1.8813, the lowest January tal expenditures), stood at 100.5 in average since January 2015 when it was $1.5714. December, down 1.6 percent from Only 17 percent expect their November. sales volume in six months to be Nonfat Dry Milk Comment: The price fell Monday on an uncovered offer at $1.2800, lower than it was during the same declined Tuesday on a sale at $1.2750, fell Wednesday on a sale at $1.2675, Although restaurant operators declined Thursday on a sale at $1.2625, and fell Friday on a sale at $1.2400. reported a net increase in same- period a year earlier. store sales for the third straight Meanwhile, restaurant operators Dry Whey Comment: The price increased Tuesday on an unfilled bid at 37.50 cents, continue to have mixed opinions rose Wednesday on a sale at 38.50 cents, declined Thursday on a sale at 37.50 month, results were dampened cents, and fell Friday on a sale at 36.50 cents. from the stronger October and about the overall economy: 22 per- November levels, the association cent expect economic conditions reported. Some 44 percent of oper- to improve in six months; 16 per- KossProducts.pdf 6 6/6/19 2:26 PM WHEY MARKETS - JANUARY 27 - 31, 2020 ators reported a same-store sales cent think conditions will worsen. RELEASE DATE - JANUARY 30, 2020

Animal Feed Whey—Central: Milk Replacer: .2800 (NC) – .3000 (NC) Buttermilk Powder: Central & East: 1.1200 (NC) – 1.1900 (NC) West: 1.1000 (NC) – 1.1900 (NC) Products & Components Mostly: 1.1300 (NC) – 1.1700 (NC) Casein: Rennet: 4.2075 (NC) – 4.3250 (NC) Acid: $3.6000 (NC) – $3.8050 (NC) for Food Manufacturing

Dry Whey—Central (Edible): Nonhygroscopic: .3000 (-1) – .3900 (NC) Mostly: .3375 (NC) – .3700 (NC) Dry Whey–West (Edible): Mezzanines, Nonhygroscopic: .3050 (NC) – .4200 (NC) Mostly: .3300 (NC) – .3825 (NC) Platforms & Master Distributor Pump SuperCenter Stairs Dry Whey—NorthEast: .3075 (NC) – .3850 (NC) Sanitary Valves Lactose—Central and West: & Pumps Edible: .2400 (NC) – .4000 (NC) Mostly: .2700 (NC) – .3300 (NC)

Nonfat Dry Milk —Central & East: C

Low/Medium Heat: 1.2400 (+1) – 1.3200 (NC) Mostly: 1.2500 (NC) – 1.2900 (NC)M High Heat: 1.2700 (NC) – 1.4000 (+2) Y Nonfat Dry Milk —Western: Low/Medium Heat: 1.2200 (+1½) – 1.3200 (-1) Mostly: 1.2500 (NC) – 1.2900 (NCCM ) High Heat: 1.3500 (NC) – 1.4200 (+1¼) MY

Whey Protein Concentrate—Central and West: CY It’s in everything we do, Edible 34% Protein: .8500 (NC) – 1.1650 (NC) Mostly: .9450 (+½) – 1.0725 (NCCMY) Koss is a preferred provider of Whole Milk—National: 1.7000 (-5) – 1.9000 (NC) K 3-A Equipment from full-plant installations, quality products to the cheese, dairy Visit www.cheesereporter.com for dairy, cheese, butter, and whey prices Leveling Feet to designing pasteurization and other sanitary industries. systems, to fabricating HISTORICAL AVG BLOCK CHEESE PRICES tanks and vessels. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec From pumps to platforms, ‘09 1.0883 1.2171 1.2455 1.2045 1.1394 1.1353 1.1516 1.3471 1.3294 1.4709 1.5788 1.6503 10 1.4536 1.4526 1.2976 1.4182 1.4420 1.3961 1.5549 1.6367 1.7374 1.7246 1.4619 1.3807 ﬁltersDoesn’t to ﬁttings, your nextand ‘11 1.5140 1.9064 1.8125 1.6036 1.6858 2.0995 2.1150 1.9725 1.7561 1.7231 1.8716 1.6170 strainersproject to deservespray balls, the ‘12 1.5546 1.4793 1.5193 1.5039 1.5234 1.6313 1.6855 1.8262 1.9245 2.0757 1.9073 1.6619 Floor Drains & ‘13 1.6965 1.6420 1.6240 1.8225 1.8052 1.7140 1.7074 1.7492 1.7956 1.8236 1.8478 1.9431 Clean Outs skill we’veof true got craftsmanship? you covered. ‘14 2.2227 2.1945 2.3554 2.2439 2.0155 2.0237 1.9870 2.1820 2.3499 2.1932 1.9513 1.5938 ‘15 1.5218 1.5382 $1.5549 1.5890 1.6308 1.7052 1.6659 1.7111 1.6605 1.6674 1.6175 1.4616 ‘16 1.4757 1.4744 1.4877 1.4194 1.3174 1.5005 1.6613 1.7826 1.6224 1.6035 1.8775 1.7335 kossindustrial.com ‘17 1.6866 1.6199 1.4342 1.4970 1.6264 1.6022 1.6586 1.6852 1.6370 1.7305 1.6590 1.4900 Green Bay, WI ‘18 1.4928 1.5157 1.5614 1.6062 1.6397 1.5617 1.5364 1.6341 1.6438 1.5874 1.3951 1.3764 1-800-844-6261 ‘19 1.4087 1.5589 1.5908 1.6619 1.6799 1.7906 1.8180 1.8791 2.0395 2.0703 1.9664 1.8764 ‘20 1.9142 For more information, visit www.kossindustrial.com