Volume 36 February 19, 2016 Number 5 Scan this code for breaking Experts share key strategies to news and the latest markets! develop effective HR programs By Alyssa Mitchell the Wisconsin Specialty Cheese (without their social security its own rather than borrowing Institute (WSCI) in Wisconsin number), offer letter, job de- language from another. INSIDE WISCONSIN DELLS, Wis. Dells. scription, emergency contact, The handbook should be — Not all businesses have •Employee handbook and verifi cation of receipt of hand- practical, she notes. ✦ Guest column: ‘Down’ an offi cial Human Resources personnel fi les book, performance reviews, dis- “Say what you do, and do may not be over yet. (HR) department. In the dairy Mary Felton, founder and ciplinary actions and training what you say,” she says. industry, company sizes range president of HR Business records. Employees by law are Felton suggests leaving For details, see page 4. from small, family-owned busi- Partners LLC, stressed the im- permitted to view this fi le upon some wiggle room by using ✦ Global Dairy Trade nesses to large international portance of having an employee request, Felton notes. permissive language such as prices weaken further. players. But in an ever-evolving handbook and outlined key as- In the confidential file, “employer may” versus “will,” For details, see page 5. regulatory environment, it’s pects that should be included. employers can keep employ- and “we will strive to” versus paramount that companies of Felton notes that in today’s ees’ social security numbers, “we will.” ✦ World Championship all sizes keep diligent records legal landscape, the U.S. De- equal opportunity employment “Don’t lock yourself in,” Cheese Contest draws and clearly communicate poli- partment of Labor (DOL) is records, informal performance she cautions, recommending record number of entries. cies to employees. increasingly conducting audits notes or investigation notes. companies also use language For details, see page 7. Experts in HR, business of companies’ recordkeeping Medical record and benefi t including “management re- and employment law recently and personnel fi les, including fi les may include doctors’ notes, serves the right to...” for various ✦ R&G Cheese Makers sets shared key strategies for com- hours worked, safety issues, Family and Medical Leave Act policies. March completion date panies to have their bases cov- paid time off and more. (FMLA) information and re- It is particularly important for new creamery. ered when it comes to the law “They can audit anything,” cords, benefi t forms, physical for companies to review their For details, see page 9. and successful HR practices she says. and drug tests. sexual harassment policy with at a meeting with members of Felton notes that No. 1 rule Finally, some records, such employees, and to get a signed for companies is to know their as Form I-9 (immigration) and dated acknowledgement boundaries as an employer and audits, should be kept in a that policies have been covered know when to call in the ex- binder where they are easily ac- with each employee, Felton USDA projects long-term rise perts, from issues ranging from cessible for specifi c purposes, says. Signed copies should be health care costs to workers’ Felton says. kept in employees’ personnel in demand for dairy exports compensation to recruitment Various postings and sig- fi les. policies. nage related to employment • The generation gap WASHINGTON — Domestic demand for cheese and butter, as well Regarding personnel fi les, laws also are required to be In addition to having the as U.S. exports of dairy products, are projected to rise over the next Felton notes they should be posted in a public area, she proper fi les and policies in decade, according to a long-term projections report released this kept in a locked, secured and notes. place, with various genera- week by USDA. fi reproof cabinet. She suggests Felton also stresses the im- tions collaborating in today’s “USDA Agricultural Projections to 2025” notes that over the next employers set up fi les into three portance of having an employee workforce, it helps to have an several years, the agricultural sector will continue to adjust to lower categories — personnel, confi - handbook. She notes this is a understanding of varying value prices for most farm commodities. Long-run developments for global dential and medical/benefi ts. legal document that can be systems across different age agriculture refl ect steady world economic growth and continued Personnel files may in- used in court, and she recom- groups, notes Andrew C. Marris, global demand for biofuel feedstocks, factors which combine to clude employee applications mends that a company write Turn to HR, page 12 D support longer run increases in consumption, trade and prices of agricultural products. Although a stronger U.S. dollar somewhat constrains growth in U.S. agricultural exports, USDA says the United States will remain competitive in global agricultural markets. U.S. export values are ‘Wood in cheese’ media Grassland Dairy projected to decline in 2015-2016 and farm cash receipts fall in Products acquires 2015-2017 before both grow over the rest of the projection period. frenzy spotlights fraud Alcam Creamery Net farm income generally increases over the projection period. By Alyssa Mitchell Milk production is projected to continue to rise, reaching 256.2 By Alyssa Mitchell billion pounds in 2025, USDA says. The long-run upward trend con- MADISON, Wis. — New media attention this week on the issue tinues in output per cow, also projected to increase through 2025, RICHLAND CENTER, Wis. of adulterated cheese has the industry on the defense over the refl ecting continued technological and genetic developments as well — Grassland Dairy Products integrity of its products. as effi ciency gains from consolidation. Inc., based in Greenwood, Several news outlets this week reported that wood pulp may Strong demand both domestically and for U.S. dairy product ex- Wisconsin, has acquired be included in grated Parmesan cheese available for purchase ports, combined with moderate gains in projected feed costs, provide Alcam Creamery Co., Rich- at various retailers. favorable returns to dairy producers that also encourage a general land Center, Wisconsin. The Bloomberg Business reports that it hired an independent labo- expansion of milk cow numbers. transaction was fi nalized ratory to test store-bought grated cheese for wood pulp content. USDA projects milk cow numbers to decrease in 2016, remain Feb. 12. A small amount — 2 to 4 percent — is allowed in grated cheese about even through 2020, and then rise through the remainder of Employees at the Alcam as an additive to keep the product from clumping and is listed the projection period to reach 9.35 million head in 2025. Rising plant will stay on, and the on ingredient labels as cellulose. Cellulose is recognized as safe milk prices after 2018 and feed costs that are lower than in recent plant will remain under the by FDA and is used in a wide variety of packaged food products. D Turn to OUTLOOK, page 12 Turn to FRAUD, page 15 D Turn to ALCAM, page 15 D © 2016 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 19, 2016 MARKET INDICATORS Chicago Mercantile Exchange Cash prices for the week ended February 19, 2016 CHEESE FUTURES* for the week ending February 18, 2016 (Listings for each day by month, settling price and open interest) Monday Tuesday Wednesday Thursday Friday Feb. 15 Feb. 16 Feb. 17 Feb. 18 Feb. 19 Fri., Feb. 12 Mon., Feb. 15 Tues., Feb. 16 Wed., Feb. 17 Thurs., Feb. 18 FEB16 1.525 3,929 1.522 3,935 1.520 3,935 1.522 3,939 Cheese Barrels MAR16 1.540 3,875 1.529 3,876 1.525 3,876 1.526 3,877 Price $1.4600 $1.4700 $1.4725 $1.4800 APR16 1.541 3,323 1.526 3,300 1.519 3,274 1.524 3,274 Change Markets -2 +1 +1/4 +3/4 MAY16 1.547 3,266 1.542 3,275 1.533 3,306 1.534 3,306 Closed JUN16 1.585 3,014 1.578 2,997 1.568 3,002 1.572 2,982 Cheese 40-lb. Blocks JUL16 1.624 2,539 1.621 2,602 1.608 2,617 1.611 2,621 Price AUG16 1.664 2,333 Markets 1.660 2,399 1.650 2,428 1.651 2,437 $1.4900 $1.4900 $1.4900 $1.4875 Closed Change SEP16 1.690 2,229 1.683 2,269 1.675 2,269 1.679 2,277 NC NC NC -1/4 OCT16 1.703 1,910 1.701 1,937 1.695 1,954 1.700 1,970 1.697 2,134 Weekly average (Feb. 16-19): Barrels: $1.4706(-.0004); 40-lb. Blocks: $1.4894(+.0074). NOV16 1.701 2,092 1.697 2,174 1.700 2,195 DEC16 1.700 1,971 1.697 1,992 1.697 2,008 1.700 2,032 Weekly ave. one year ago (Feb. 16-20, 2015): Barrels: $1.4850; 40-lb. Blocks: $1.5413. JAN17 1.682 127 1.683 139 1.683 139 1.684 167 FEB17 1.680 94 1.681 131 1.682 145 1.682 175 Grade A NDM MAR17 1.698 71 1.680 106 1.682 125 1.682 155 Price Markets $0.7575 $0.7450 $0.7350 $0.7400 APR17 1.700 37 1.700 37 1.700 37 1.690 76 MAY17 1.700 37 1.700 37 1.700 37 1.700 61 Change Closed +2 -1 1/4 -1 +1/2 JUN17 1.700 37 1.700 37 1.700 37 1.700 61 Weekly average (Feb.