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 PRECISE, RAPID CHEESE REPORTER SHREDS urschel.com Vol. 144, No. 9 • Friday, August 16, 2019 • Madison, Wisconsin More Milkfat, Skim Solids Being Volume Of Milk Pooled On CA Federal Used In Cheese, Less In Fluid Milk Order In July Was Washington—Between 2000 and During the 2000-2017 period, lion pounds in 2000 to 983.9 mil- Lowest Since Feb.; 2017, the percentage of the US US cheese production increased lion pounds in 2017 (although it Class IV Tops 50% milkfat and skim-solids supplies from 8.3 billion pounds to 12.64 increased three straight years after used in cheese has risen while the billion pounds. The milkfat used in reaching a low of 956.3 million Woodland, CA—A total of 2.005 percentages used in fluid milk have cheese during that period increased pounds in 2014), and fluid milk billion pounds of milk was pooled on the California federal milk mar- declined, according to figures from from 2.3 billion pounds to 3.5 bil- accounted for 11.8 percent of the keting order in July, down 368.2 USDA’s Economic Research Ser- lion pounds, and accounted for total milkfat supply in 2017, down million pounds from June, figures vice (ERS). 37.7 percent of the total milkfat from 18.1 percent in 2000. released this week by the Califor- ERS recently released a new supply in 2000 and 42.5 percent The average milkfat content of nia market administrator’s office data set that includes comprehen- of the total milkfat supply in 2017 fluid milk in 2017, 2.02 percent, show. sive estimated supply and alloca- The milkfat content of cheese was unchanged from 2000. That volume was the lowest tion breakouts of milkfat and skim declined from 28.3 percent in 2000 Fluid milk remains the leading volume of milk pooled on the Cal- solids for dairy products from 2000 to 28.0 percent in 2017. user of skim solids, but the use of skim solids in fluid milk products ifornia federal order since Febru- through 2017. During that period, The skim solids used in cheese ary, when the pooled milk volume the US milkfat supply increased increased from 2.3 billion pounds has been declining as sales have fallen. totaled 1.83 billion pounds. The from 6.2 billion pounds to 8.3 bil- in 2000 to 3.6 billion pounds in volume of milk pooled on the Cali- lion pounds, while the skim-sol- 2017, and cheese accounted for Specifically, the skim solids used in fluid milk fell from just under 5 fornia order had reached a record ids supply rose from 14.7 billion 18.6 percent of the US skim sol- high of 2.584 billion pounds in pounds to 19.2 billion pounds. ids supply in 2017, up from 15.5 billion pounds in 2000 to 4.4 bil- lion pounds in 2017, and fluid mlk May. For this data set, the total milk- percent in 2000. The skim solids In recent years, July milk pro- fat supply includes the milkfat of content of cheese increased from accounted for 23.1 percent of the skim solids supply in 2017, down duction in California has ranged domestic milk production plus the 27.6 percent in 2000 to 28.3 per- from a low of 3.295 billion pounds milkfat of imported dairy products cent in 2017. from 33.8 percent in 2000. The average skim solids content in 2018 to a high of 3.52 billion assumed to be used as ingredients Fluid (beverage) milk sales pounds in 2014. Thus, it appears in domestically produced dairy declined from 55.5 billion pounds of fluid milk increased from 8.95 percent in 2000 to 9.12 percent that well over 1 billion pounds of products, while the total skim- in 2000 to 48.6 billion pounds in milk was depooled from the Cali- solids supply includes the skim 2017, and they also accounted for in 2017. Butter production increased fornia order in July. solids of domestic milk production less milkfat and skim solids use at from 1.26 billion pounds in 2000 Thanks to the drop in the vol- plus the skim solids of imported the end of that period than at the to 1.85 billion pounds in 2017, ume of milk pooled, the California dairy products assumed to be used beginning. and during that period butter went order ranked third among all fed- as ingredients in domestically pro- Specifically, the milkfat used in eral orders in terms of the volume duced dairy products. fluid milk declined from 1.12 bil- • See Milkfat, Skim Solids, p. 4 of milk pooled during July, trail- ing the Upper Midwest order’s 2.9 billion pounds and the Northeast USDA Lowers Milk Fluid Milk Still Offers Opportunities; order’s 2.24 billion pounds. Production Forecasts Premiumized Products Here To Stay As in previous months, there were significant changes in Class For 2019, 2020; New York—The old days of high Keys made the “spurious connec- III and Class IV utilization vol- margin bulk fluid milk are long tion” that consuming fat was bad umes and percentages on the Cali- Dairy Product Price gone, but there are opportunities for your health, the report noted. fornia order in July. Forecasts Mixed for the bold, UHT milks in devel- At the time, whole milk was pre- oping markets and premium, ferred in the US, putting it in the • See CA Milk Utilization, p. 9 Washington—The US Depart- differentiated milks earmarked crosshairs of the anti-fat nutri- ment of Agriculture (USDA), in with sustainability and quality in tional campaigns. On a per capita its monthly supply-demand esti- developed markets, according to basis, US fluid milk consumption CME Butter mates released Monday, reduced its a new report from Rabobank. fell from 254 pounds in 1975 to Price Volatility: milk production forecasts for both Fluid milk companies in 146 pounds in 2018, and similar Highest/Lowest Weekly Price Avgs: 2012 – Aug. 2019 2019 and 2020, while its dairy developed markets are on the declines were seen from the Euro- $3.25 product price forecasts were mixed. back foot with demand falling pean Union (EU) to Australia. $3.00 The milk production forecasts at a compound annual growth Since early 2000, value-added are reduced from last month on rate (CAGR) of 2 percent and fluid milk products have gradually $2.75 expectations of a smaller dairy 3 percent in North America and entered the category. Milks with herd and slower growth in milk Western Europe over the last 10 differentiating attributes, such as $2.50 per cow. USDA now expects 2019 years as, broadly speaking, con- enhanced protein and lactose- $2.25 milk production to total 217.9 bil- ventional milk has failed to rein- free, as well as differentiating lion pounds, down 300 million vent itself, the report said. production styles, such as organic $2.00 pounds from last month’s forecast Per capita consumption of and grass-fed milks, have been $1.75 and up just 300 million pounds fluid milk in developed markets “far more successful,” according from 2018’s record output. For started to decline during the post- to the report. They have shown $1.50 2020, USDA expects milk produc- World War II era and began in • See Dairy Forecasts, p. 10 earnest in the 1970s, when Ancel • See Milk Opportunities, p. 5 $1.25 12 13 14 15 16 17 18 19* Page 2 CHEESE REPORTER August 16, 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 there are some foods that have a QR code. DICK GROVES date on them but either don’t clarify Cheese Reporter Publishing Co. Inc. ©2019 what that date means or put the clarification somewhere else on the 2810 Crossroads Drive, Suite 3000 Publisher / Editor Madison, WI 53718-7972 label (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 Time Has Come For National Food Date Labeling Law MOIRA CROWLEY Legislation introduced in both would at least be a positive step and land, water, labor, energy and Specialty Cheese Editor e-mail: [email protected] the House and Senate late last toward reducing consumer confu- other inputs are used in produc- 608-316-3793 month (and covered in a story that sion. ing, processing, transporting, pre- KEVIN THOME appeared on page 11 of our Aug. Second, these quality and paring, storing, and disposing of Advertising & Marketing Director 2nd issue) would establish require- safety food date labels are strictly discarded food. e-mail: [email protected] ments for quality and discard dates optional for food companies. This Related to this point, wasted 608-316-3792 for food and beverage products. is spelled out several times in the food that ends up in landfills is also BETTY MERKES Classifieds/Circulation Manager This common-sense legislation legislation. For example, the short a significant source of greenhouse e-mail: [email protected] deserves serious consideration by summary of the bill states that the gas emissions, according to some 608-316-3790 Congress, and also by the food and measure would establish require- sources. This is because decom- REGULAR CONTRIBUTORS: dairy industry.