12
© 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]) High supply leads to lower USDA cheese price forecast WASHINGTON — The 2016 and 2017 forecasts for cheese and butter prices are lowered in USDA’s most recent “World Agricul- tural Supply and Demand Estimates” report, released this week, as supplies remain high. Meanwhile, prices for nonfat dry milk (NDM) and whey are forecast higher as the global supply tightens and demand strengthens. Cheese now is projected to average $1.600-$1.620 per pound in 2016, down from $1.610-$1.630 in last month’s report. In 2017, USDA forecasts cheese will average $1.605-$1.705, down from its forecast of $1.615-$1.715 last month. Butter now is forecast to average $2.080-$2.120 in 2016, down from the forecast range of $2.140-$2.180 in last month’s report. In 2017, USDA forecasts butter will average in the $1.955-$2.085 range. Global dairy groups seek WTO action against Canada WASHINGTON — Dairy organizations in the United States, Australia, the European Union, Mexico and New Zealand this week called for government officials to initiate a World Trade Organization (WTO) dispute settlement proceeding against Canada regarding recent ac- tions they say will restrict dairy trade. In a joint letter sent this week to trade and agriculture officials in their respective countries, the groups say Canada’s increasingly pro- tectionist policies violate “international trade obligations, hold out the prospect of trade diversion with the attendant global price depressing impacts and are in conflict with the principles of free markets and fair and transparent trade.” The U.S. groups, including National Milk Producers Federation (NMPF), the U.S. Dairy Export Council (USDEC) and the International Dairy Foods Association (IDFA), oppose a Canadian agreement in principle reached earlier this year between Canada’s dairy producers and processors. (See “Canada increases butter, SMP support prices; producers, processors agree on new strategy” in the July 22, 2016, issue of Cheese Market News.) The agreement will, among other things, establish a new ingredient milk class to be priced at the lowest of the U.S., EU and Oceania price for solids-non-fat (SNF) for seven years, the letter notes. This provision provides both an incentive to substitute those ingredients for their im- ported counterparts and a subsidy on the production of the end product containing those ingredients, violating Canada’s obligations under a number of WTO and North America Free Trade Agreement (NAFTA) provisions, the letter says. The groups also argue that Canada’s actions would undermine the intent of the pending Trans-Pacific Partnership (TPP) and the EU-Canada Comprehensive Economic and Trade Agree- ment (CETA). If ratified, Canada’s agreement would take effect Nov. 1. The dairy organizations in the letter request the authorities of Australia, New Zealand, Mexico, the United States and the European Commission Volume 36 September 16, 2016 Number 35 By Rena Archwamety MADISON, Wis. — Annatto, the orange-hued extract from seeds of the Bixa orellana tree grown in equatorial regions, has been widely used as a color- ing and spice for centuries and as a cheese pigment since the late 1800s. Its popularity con- tinues to flourish, especially as food companies recently have started seeking more natural ingredients due to increased consumer demand. Global culture and color supplier Chr. Hansen has been supplying annatto colors for the cheese and dairy industry since 1876, two years after the company was founded. The company notes that the major Preference for ‘natural’ boosts annatto extract demand, price proportion of the world’s an- natto production comes from the collection of seeds from small trees and bushes planted on family farms. Key markets from which annatto seeds are sourced include Brazil, Peru, Kenya, India and the Philip- pines. “Annatto is an ancient seed that has been used for a very long time, all the way back to local tribes using it for face painting and the coloring of clothes,” says Christian Hjor- tholm Steffensen, marketing manager and strategic account manager, Chr. Hansen. Steffensen adds that an- natto is an affordable and widely used natural coloring for cheese and other food products in the United States and most parts of the world. “It’s a relatively inexpensive natural color,” he says. “Many natural colors are quite ex- pensive compared to artificial colors. Annatto is an exception, due to its large tradition and supply network.” There are two primary types of annatto coloring: bixin, which is oil-soluble, and nor- bixin, which is water-soluble. “The food industry uses bixin for things like butter, processed cheese, popcorn oil and certain snacks,” says Camp- bell Barnum, vice president of branding and market develop- ment at global color provider D.D. Williamson (DDW). “Nor- bixin is used in natural cheeses like Cheddar, Red Leicester or Gouda, vanilla ice cream, peach yogurt, chocolate drink mix and egg substitutes.” The use of annatto origi- nated as a way to achieve a consistent color for cheese, according to David Potter, vice president and technical man- ager of Madison, Wisconsin- based The Dairy Connection, an ingredient supplier to small- scale cheesemakers. “In the winter it would be very white, and in the summer, when the cows were out on pasture, there was more beta carotene in the milk, producing a richer cheese color,” Potter says. “When marketing it on a large scale, they wanted more of a standardized color approach.” Potter adds that annatto tends to be used more in Ched- dar in the Midwest, while more Cheddars on the East and West coasts are white. Annatto also is used more commonly in barrel cheese and shreds. • Natural demand At the beginning of this year, Kraft Heinz changed the formu- lation of its Kraft Macaroni & Cheese, replacing synthetic colors with colors derived from annatto and other natural sources. This greatly increased the demand for annatto, con- tributing to rising prices. “Because of the size and scale of these major brands, this does change the amount of supply needed from the annatto industry,” Steffensen says. “With consumers being more concerned than ever with what they eat, the demand for natural pigments like annatto will most likely only go up from here.” He adds that there may be even more demand in the future as other leading food manufac- turers such as Mars, General Mills, Kellogg’s and others also have committed to converting to natural colors, potentially increasing demand for annatto in the confectionery, cereal and other industries. DDW notes that with the increased demand, annatto supply in the last 24 months has gone from OK to finely balanced to tight. Prices currently are higher than they have been in five to six years. “On a year-to-year basis, we have seen growth in annatto Continental Dairy to add buttermilk powder, butter A INSIDE Turn to ANNATTO, page 10 a Turn to WASDE, page 10 a COOPERSVILLE, Mich. Continental Dairy Facilities LLC, Coopersville, Michi- gan, has announced a $50 million expansion project for butter and buttermilk powder at its Coopersville plant. The expansion will create 10 new full-time jobs at the dairy. Continental Dairy Facili- ties LLC was established in 2012 and is owned by Select Turn to EXPANSION, page 10 a Turn to CANADA, page 10 a Like us on Facebook and follow us on Twitter! Prolamina completes plant renovation. For details, see page 3. Guest column: The ‘longest’ participant in dairy: the EU. For details, see page 4. Retail WATCH Exclusive: BelGioioso moves forward with classic cheeses, new creations. For details, see page 5. House ag committee holds hearing on trade with Cuba. For details, see page 12.

Preference for ‘natural’ boosts annatto extract …...carotene in the milk, producing a richer cheese color,” Potter says. “When marketing it on a large scale, they wanted

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Page 1: Preference for ‘natural’ boosts annatto extract …...carotene in the milk, producing a richer cheese color,” Potter says. “When marketing it on a large scale, they wanted

© 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])

High supply leads to lower USDA cheese price forecastWASHINGTON — The 2016 and 2017 forecasts for cheese and butter prices are lowered in USDA’s most recent “World Agricul-tural Supply and Demand Estimates” report, released this week, as supplies remain high. Meanwhile, prices for nonfat dry milk (NDM) and whey are forecast higher as the global supply tightens and demand strengthens.

Cheese now is projected to average $1.600-$1.620 per pound in 2016, down from $1.610-$1.630 in last month’s report. In 2017, USDA forecasts cheese will average $1.605-$1.705, down from its forecast of $1.615-$1.715 last month.

Butter now is forecast to average $2.080-$2.120 in 2016, down from the forecast range of $2.140-$2.180 in last month’s report. In 2017, USDA forecasts butter will average in the $1.955-$2.085 range.

Global dairy groups seek WTO action against Canada WASHINGTON — Dairy organizations in the United States, Australia, the European Union, Mexico and New Zealand this week called for government offi cials to initiate a World Trade Organization (WTO) dispute settlement proceeding against Canada regarding recent ac-tions they say will restrict dairy trade.

In a joint letter sent this week to trade and agriculture offi cials in their respective countries, the groups say Canada’s increasingly pro-tectionist policies violate “international trade obligations, hold out the prospect of trade diversion with the attendant global price depressing impacts and are in confl ict with the principles of free markets and fair and transparent trade.”

The U.S. groups, including National Milk Producers Federation (NMPF), the U.S. Dairy Export Council (USDEC) and the International Dairy Foods Association (IDFA), oppose a Canadian agreement in principle reached earlier this year between Canada’s dairy producers and processors. (See “Canada increases butter, SMP support prices; producers, processors agree on new strategy” in the July 22, 2016, issue of Cheese Market News.)

The agreement will, among other things, establish a new ingredient milk class to be priced at the lowest of the U.S., EU and Oceania price for solids-non-fat (SNF) for seven years, the letter notes. This provision provides both an incentive to substitute those ingredients for their im-ported counterparts and a subsidy on the production of the end product containing those ingredients, violating Canada’s obligations under a number of WTO and North America Free Trade Agreement (NAFTA) provisions, the letter says. The groups also argue that Canada’s actions would undermine the intent of the pending Trans-Pacifi c Partnership (TPP) and the EU-Canada Comprehensive Economic and Trade Agree-ment (CETA). If ratifi ed, Canada’s agreement would take effect Nov. 1.

The dairy organizations in the letter request the authorities of Australia, New Zealand, Mexico, the United States and the European Commission

Volume 36 September 16, 2016 Number 35

By Rena Archwamety

MADISON, Wis. — Annatto, the orange-hued extract from seeds of the Bixa orellana tree grown in equatorial regions, has been widely used as a color-ing and spice for centuries and as a cheese pigment since the late 1800s. Its popularity con-tinues to fl ourish, especially as food companies recently have started seeking more natural ingredients due to increased consumer demand.

Global culture and color supplier Chr. Hansen has been supplying annatto colors for the cheese and dairy industry since 1876, two years after the company was founded. The company notes that the major

Preference for ‘natural’ boosts annatto extract demand, price

proportion of the world’s an-natto production comes from the collection of seeds from small trees and bushes planted on family farms. Key markets from which annatto seeds are sourced include Brazil, Peru, Kenya, India and the Philip-pines.

“Annatto is an ancient seed that has been used for a very long time, all the way back to local tribes using it for face painting and the coloring of clothes,” says Christian Hjor-tholm Steffensen, marketing manager and strategic account manager, Chr. Hansen.

Steffensen adds that an-natto is an affordable and widely used natural coloring for cheese and other food products in the United States and most parts of the world.

“It’s a relatively inexpensive natural color,” he says. “Many natural colors are quite ex-pensive compared to artifi cial colors. Annatto is an exception, due to its large tradition and supply network.”

There are two primary types of annatto coloring: bixin, which is oil-soluble, and nor-bixin, which is water-soluble.

“The food industry uses bixin for things like butter, processed cheese, popcorn oil

and certain snacks,” says Camp-bell Barnum, vice president of branding and market develop-ment at global color provider D.D. Williamson (DDW). “Nor-bixin is used in natural cheeses like Cheddar, Red Leicester or Gouda, vanilla ice cream, peach yogurt, chocolate drink mix and egg substitutes.”

The use of annatto origi-nated as a way to achieve a consistent color for cheese, according to David Potter, vice president and technical man-ager of Madison, Wisconsin-based The Dairy Connection, an ingredient supplier to small-scale cheesemakers.

“In the winter it would be very white, and in the summer, when the cows were out on pasture, there was more beta carotene in the milk, producing a richer cheese color,” Potter says. “When marketing it on a large scale, they wanted more of a standardized color approach.”

Potter adds that annatto tends to be used more in Ched-dar in the Midwest, while more Cheddars on the East and West coasts are white. Annatto also is used more commonly in barrel cheese and shreds.• Natural demand

At the beginning of this year, Kraft Heinz changed the formu-

lation of its Kraft Macaroni & Cheese, replacing synthetic colors with colors derived from annatto and other natural sources. This greatly increased the demand for annatto, con-tributing to rising prices.

“Because of the size and scale of these major brands, this does change the amount of supply needed from the annatto industry,” Steffensen says. “With consumers being more concerned than ever with what they eat, the demand for natural pigments like annatto will most likely only go up from here.”

He adds that there may be even more demand in the future as other leading food manufac-turers such as Mars, General Mills, Kellogg’s and others also have committed to converting to natural colors, potentially increasing demand for annatto in the confectionery, cereal and other industries.

DDW notes that with the increased demand, annatto supply in the last 24 months has gone from OK to fi nely balanced to tight. Prices currently are higher than they have been in fi ve to six years.

“On a year-to-year basis, we have seen growth in annatto

Continental Dairy to add buttermilk powder, butter

A

INSIDE

Turn to ANNATTO, page 10 a

Turn to WASDE, page 10 a

COOPERSVILLE, Mich. — Continental Dairy Facilities LLC, Coopersville, Michi-gan, has announced a $50 million expansion project for butter and buttermilk powder at its Coopersville plant. The expansion will create 10 new full-time jobs at the dairy.

Continental Dairy Facili-ties LLC was established in 2012 and is owned by Select

Turn to EXPANSION, page 10 aTurn to CANADA, page 10 a

Like us on Facebook and

follow us on Twitter!

✦ Prolamina completes plant renovation. For details, see page 3.

✦ Guest column: The ‘longest’ participant in dairy: the EU. For details, see page 4.

✦ Retail WATCH Exclusive: BelGioioso moves forward with classic cheeses, new creations. For details, see page 5.

✦ House ag committee holds hearing on trade with Cuba. For details, see page 12.

Page 2: Preference for ‘natural’ boosts annatto extract …...carotene in the milk, producing a richer cheese color,” Potter says. “When marketing it on a large scale, they wanted

© 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])

MARKET INDICATORS

2 CHEESE MARKET NEWS® — September 16, 2016

DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions.

STAFF SUBSCRIPTION INFORMATIONCheese Market News®, Publication #0598-030, (ISSN 0891-

1509), is published weekly by Quarne Publishing LLC, P.O.

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FAX 608/288-9093. Periodicals postage paid at Madison,

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LLC, P.O. Box 628254, Middleton, WI 53562. POSTMASTER: Send address changes to Cheese Market News®, Subscriber Services, P. O. Box 628254, Middleton, WI 53562; Form 3579 requested; or call direct at 608/831-6002. All rights

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Susan Quarne, Publisher (PH 608/831-6002; FAX 608/831-1004) email: [email protected] Kate Sander, Editorial Director (PH 509/962-4026; FAX 509/962-4027) email: [email protected] Mitchell, Senior Editor (PH 608/288-9090; FAX 608/288-9093) email: [email protected] Archwamety, News/Web Editor (PH 608/288-9090; FAX 608/288-9093) email: [email protected] Awe, Assistant Editor (PH 608/288-9090; FAX 608/288-9093) email: [email protected] CONTRIBUTORSCreative Business Services, FCStone, International Dairy Foods Association, Eric Meyer, National Milk Producers Federation, Rice Dairy, John Umhoefer, U.S. Dairy Export Council, WOW Logistics, Edward ZimmermanADVERTISING/SUBSCRIPTION ORDERS & INFOContact: Susan Quarne - PublisherP.O. Box 628254, Middleton, WI 53562PHONE 608/831-6002 • FAX 608/288-9093

WEBSITE: www.cheesemarketnews.com

Dry Products* September 16, 2016

DRY BUTTERMILK(FOB)Central & East: $.8300(+2)-$.8900.(FOB) West: $.8000(+2)-$.9200(+3); mostly $.8200-$.8700(+2).

EDIBLE LACTOSE(FOB)Central and West: $.2300-$.4050; mostly $.2800-$.3650(+1/2).

NONFAT DRY MILKCentral & East: low/medium heat $.8400(-1)-$.9700(+1); mostly $.9000(+2)-$.9400(+2). high heat $.9800-$1.0700.West: low/medium heat $.8400(-1/4)-$.9800(+3); mostly $.9050(+1 1/2)-$.9350(+1/2). high heat $.9500(+2)-$1.0600.Calif. manufacturing plants: extra grade/grade A weighted ave. $.8612(+.0152) based on 9,688,100 lbs.

WHOLE MILK POWDER (National): $1.2900-$1.3500.

WHEY POWDERCentral: nonhygroscopic $.2550-$.4000(+2); mostly $.2750-$.3350.West: nonhygroscopic $.2850-$.4000(+2); mostly $.3000-$.3450(+1/4).(FOB) Northeast: extra grade/grade A $.3000-$.3450(+1).

ANIMAL FEED WHEY (Central): Whey spray milk replacer $.2250-$.2750.

WHEY PROTEIN CONCENTRATE (34 percent): $.6000(+1/2)-$.8750; mostly $.6700-$.7850(+1/2).

CASEIN: Rennet $3.0250(+1 1/2)-$3.0700; Acid $3.0400(+1/2)-$3.1000.

*Source: USDA’s Dairy Market News

Total Contracts Traded/Open Interest

Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.

SEP16OCT16NOV16DEC16JAN17FEB17MAR17APR17MAY17JUN17JUL17AUG17SEP17OCT17NOV17DEC17JAN18

CHEESE FUTURES for the week ending September 15, 2016 (Listings for each day by month, settling price and open interest)

Fri., Sept. 9 Mon., Sept. 12 Tues., Sept. 13 Wed., Sept. 14 Thurs., Sept. 151.7581.7351.7171.6811.6681.6721.6751.6821.6981.7121.7251.7381.7431.7441.7431.7391.739

3,8163,3783,6663,4341,3941,2381,2801,1041,069

899379361301266294265

2

139/23,146

1.7581.7251.7191.6811.6691.6721.6781.6821.6981.7121.7251.7381.7431.7441.7431.7391.739

3,7953,3443,6573,4231,4181,2661,3051,1241,089

919379361301266294265

2

317/23,208

1.7551.7291.7231.6901.6701.6731.6781.6821.6981.7151.7251.7381.7431.7441.7431.7391.739

3,7723,3283,6633,4241,4271,2921,3261,1241,089

919379361301266294265

2

278/23,232

1.7681.7561.7411.6971.6701.6701.6751.6781.6981.7161.7371.7401.7491.7481.7501.7401.739

3,8433,3483,6253,4001,3851,2201,2631,0901,063

890375361301267295265

2

143/22,993

1.7551.7281.7121.6811.6631.6681.6741.6771.6981.7141.7331.7401.7491.7481.7501.7401.739

3,8253,3753,6563,4271,3911,2321,2761,1011,067

897379361301267295265

2

292/23,117

Total Contracts Traded/Open Interest

SEP16OCT16NOV16DEC16JAN17FEB17MAR17APR17MAY17JUN17JUL17AUG17SEP17OCT17

DRY WHEY FUTURES* for the week ended September 15, 2016 (Listings for each day by month, settling price and open interest)

Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.*Total Contracts Traded/Open Interest refl ect additional months not included in this chart.

Fri., Sept. 9 Mon., Sept. 12 Tues., Sept. 13 Wed., Sept. 14 Thurs., Sept. 1530.35035.00036.00037.00038.00039.47538.25039.32539.00039.50039.80039.00039.27539.300

634537507461278259259245219232

76786461

21/4,059

30.35035.00035.80036.70037.80038.17538.00038.50038.50038.75038.80039.00039.27539.300

634544507460278259262245219232

76786462

43/4,069

30.35034.50035.80036.70037.80037.50038.00038.50038.50038.75038.80039.00039.27539.300

634553507460278260262245219232

76786462

20/4,079

30.25035.00036.07537.00038.47539.47539.00039.32539.00039.50039.00039.25039.27539.300

634538495461270252251240214227

71735956

12/3,980

30.25035.00036.00037.00038.47539.47539.00039.32539.00039.50039.00039.25039.27539.300

634537507461275257258245219232

76786461

75/4,053

CLASS III PRICE (Dollars per hundredweight, 3.5% butterfat test)

YEAR2010201120122013201420152016

JAN14.5013.4817.0518.1421.1516.1813.72

FEB 14.2817.0016.0617.2523.3515.4613.80

MAR12.7819.4015.7216.9323.3315.5613.74

APR12.9216.8715.7217.5924.3115.8113.63

MAY13.3816.5215.2318.5222.5716.1912.76

JUN13.6219.1115.6318.0221.3616.7213.22

JUL 13.7421.3916.6817.3821.6016.3315.24

AUG15.1821.6717.7317.9122.2516.2716.91

SEP16.2619.0719.0018.1424.6015.82

OCT16.9418.0321.02 18.22 23.82 15.46

NOV15.4419.0720.8318.8321.9415.30

DEC13.8318.7718.6618.9517.8214.44

(These data, which include government stocks and are reported in thousands of pounds, are based on reports from a limited sample of cold storage centers across the country. This chart is designed to help the dairy industry see the trends in cold storage between the release of the National Agricultural Statistics Service’s monthly cold storage reports.)

ButterCheese

25,88187,878

-1,500-1,139

15,736100,905

-1,616-1,143

+10,145-13,027

-6-1

Weekly Cold Storage Holdings September 12, 2016 On hand Week Change since Sept. 1 Last Year Monday Change Pounds Percent Pounds Change

Monday Tuesday Wednesday Thursday Friday

Chicago Mercantile Exchange

Sept. 12 Sept. 13 Sept. 14 Sept. 15 Sept. 16

Weekly average (Sept. 12-16): Barrels: $1.5295(-.1049); 40-lb. Blocks: $1.6610(-.0465).Weekly ave. one year ago (Sept. 14-18, 2015): Barrels: $1.5530; 40-lb. Blocks: $1.6695.

Cheese BarrelsPriceChange

Cheese 40-lb. BlocksPriceChange

Grade A NDMPriceChange

Weekly average (Sept. 12-16): Grade A: $0.9065(+.0021).

Grade AA ButterPriceChange

Class II Cream (Major Northeast Cities): $2.4420(-.2108)–$2.6862(-.1738).

Weekly average (Sept. 12-16): Grade AA: $2.0160(-.0190).

$2.0100-2 1/4

Sign up for our daily fax or email service for just $104 a year. Call us at 608-288-9090.

Cash prices for the week ended September 16, 2016

$1.5500-2

$1.6650+1 1/2

$0.9050NC

$2.0325NC

$1.5200 -3/4

$1.6700NC

$2.0050-1/2

$0.9075+1/4

$0.9050NC

$2.0325NC

$1.5275-2 1/4

$1.6700+1/2

$0.9050NC

$1.5700-3 1/2

$1.6500-6

$1.4800-4

$1.6500-2

$0.9100+1/4

$2.0000-1/2

Page 3: Preference for ‘natural’ boosts annatto extract …...carotene in the milk, producing a richer cheese color,” Potter says. “When marketing it on a large scale, they wanted

© 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])

September 16, 2016 — CHEESE MARKET NEWS® 3

DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions.

NEWS/BUSINESS MARKET INDICATORS

For more information please visit www.devilletechnologies.com

Prolamina celebrates completion of plant renovation in Westfi eld, MassachusettsWESTFIELD, Mass. — Global fl ex-ible packaging company Prolamina, a division of ProAmpac, celebrated the completion of its Westfield, Massa-chusetts, facility with a ribbon-cutting ceremony this week.

More than 100 Prolamina employees, friends, and state and local offi cials were in attendance.

The event began with a word of wel-come from Dave Hopkins, president of commercial operations for Prolamina, followed by remarks from Brian Sulli-van, mayor of Westfi eld, who presented Prolamina with a proclamation from the city. Prolamina also received proclama-tions from state Sen. Don Humason and state Rep. John Velis. Greg Tucker, CEO for ProAmpac, concluded the ceremony with a special thank you to employees, state and local offi cials, and supporters of the project.

The project included a 31,000-square-foot facility renovation; replacement of the 200,000-square-foot roof; improve-ment of the building’s air fl ow; and additional manufacturing space.

Prolamina invested more than $4 mil-lion and allocated another $2.9 million for future equipment upgrades. Prolamina’s Westfi eld facility has been in operation for more than 30 years, and although the building has seen improvements in the past, a refurbishment of this magnitude has never been done, the company says.

“The facility improvements are neces-sary to remain a leader in the markets we serve,” Tucker says. “Along with ex-terior and interior beautifi cation, there is improved facilitywide technology and green initiatives.”

Prolamina’s Westfi eld facility em-ploys more than 250 people and operates 24 hours a day, seven days a week. CMN

Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. *Total Contracts Traded/Open Interest refl ect additional months not included in this chart.

Total Contracts Traded/Open Interest

Cash-Settled NDM*

SEP16OCT16NOV16DEC16JAN17FEB17MAR17APR17MAY17

SEP16OCT16NOV16DEC16JAN17FEB17MAR17APR17MAY17JUN17

Total Contracts Traded/Open Interest

Fri., Sept. 9 Mon., Sept. 12 Tues., Sept. 13 Wed., Sept. 14 Thurs., Sept. 15

Total Contracts Traded/Open Interest

SEP16OCT16NOV16DEC16JAN17FEB17MAR17APR17MAY17JUN17JUL17AUG17SEP17OCT17NOV17

Class III Milk*

Total Contracts Traded/Open Interest

Class IV Milk*

SEP16OCT16NOV16DEC16JAN17FEB17MAR17APR17MAY17JUN17JUL17

CME FUTURES for the week ended September 15, 2016

Fri., Sept. 9 Mon., Sept. 12 Tues., Sept. 13 Wed., Sept. 14 Thurs., Sept. 15

746/30,386

16.5116.7016.5916.2015.9616.0116.0416.1216.2616.4316.6616.8116.8516.9216.87

Fri., Sept. 9 Mon., Sept. 12 Tues., Sept. 13 Wed., Sept. 14 Thurs., Sept. 15

Cash-Settled Butter*

14.2614.9615.3815.4515.5315.7515.9416.1616.3616.4416.66

408510510445234236236187161178

74

88.47594.800

100.000103.500106.500108.325111.500114.325116.575

1,021886762884248160179161113

207.850211.500211.600206.450198.750198.775199.750200.000200.525200.550

1,4481,4681,491

838272220222151138139

2/3,836

50/4,891

70/6,718

5,2144,9384,1833,4481,8061,8101,6691,4871,3301,229

719634571446407

23/3,845

Fri., Sept. 9 Mon., Sept. 12 Tues., Sept. 13 Wed., Sept. 14 Thurs., Sept. 15

5,0784,9344,2623,5081,8631,8601,7321,5341,3981,293

733676590451413

16.4516.4716.4216.1315.9215.9516.0716.1116.2516.4616.5916.6616.7116.7316.71

731/30,825

14.2414.9315.3715.4415.4515.7515.8816.1616.3616.4416.66

408510510451234236236187161178

75

33/3,859

88.50094.500

100.250103.350106.500108.325111.500114.325116.575

997887764889248160179161113

80/4,876

207.000210.000209.775204.000198.525199.000199.750200.000200.525200.550

1,4491,4831,503

839277217222151138140

105/6,750

5,0865,0134,2693,5101,8641,8701,7501,5341,3981,293

735678592452416

16.4116.3316.4016.1215.9215.9916.1316.1316.2516.4616.6016.6816.7316.7716.73

1,088/30,963

206.750206.000206.750202.350198.000198.500199.500200.000200.525201.000

1,4491,5281,517

840281217222151138140

184/6,814

88.42594.250

100.500103.500107.225109.250111.925114.325116.575

998869766889250162181161113

67/4,872

14.2414.7215.2215.3315.4515.7515.8816.1616.3616.4416.66

408510510451234236236187161178

75

16/3,859

14.3114.9615.4415.4715.5315.7515.9416.1616.3616.4416.66

408510514450234236236187161178

74

88.25094.500

100.400103.000106.500108.300111.500114.325116.575

1,023867788872248159179161113

135/4,887

208.300211.575211.250205.125198.025198.525199.250200.000200.525200.525

1,4481,4601,478

820272220222148138139

189/6,676

5,0884,9604,2703,5221,8401,8391,7091,4991,3711,268

732651588451413

16.4716.5016.4516.1115.8715.9315.9916.1116.2316.4616.5716.6516.6916.7016.69

1,007/30,701

16.4316.4316.3516.0515.9015.9516.0316.1216.2416.4216.6516.7716.8516.9216.86

5,1384,9254,2433,4961,8241,8171,6711,4901,3571,249

724643581449410

1,534/30,515

14.2614.9615.4415.4515.5315.7515.9416.1616.3616.4416.66

408510509445234236236187161178

74

10/3,835

88.25094.60099.900

103.000106.500108.325111.500114.325116.575

1,022873759876248160179161113

83/4,868

208.000211.075210.600205.275198.750198.775199.750200.000200.525200.550

1,4481,4661,481

821272220222148138139

25/6,686

National Dairy Products Sales Report

Cheese 40-lb. Blocks:

*/Revised. 1/Prices weighted by volumes reported. 2/Sales as reported by participating manufacturers. Reported in pounds. More information is available by calling AMS at 202-720-4392.

Average price1 Sales volume2

Cheese 500-lb. Barrels:Average price1

Adj. price to 38% moistureSales volume2

Moisture content Butter:

Average price1

Sales volume2 Nonfat Dry Milk:

Average price1 Sales volume2

Dry Whey:Average price1 Sales volume2

For the week ended: 8/27/16

$1.8078 14,533,164

$2.0033$1.9057

8,873,73634.83

$2.22022,552,706

$0.864416,489,078

*$0.2926*7,001,043

$1.8251 14,532,599

*$1.9670*$1.8765

*9,243,193*35.01

$2.12042,423,041

$0.8533*25,404,021

*$0.2976*6,145,046

9/3/16 8/20/16

$1.7958 12,643,660

$1.8445$1.7613

10,390,83635.07

$2.09821,974,896

$0.881913,357,797

$0.29737,083,257

9/10/16

$1.7756 13,608,846

$1.9737$1.8816

10,344,60734.96

$2.24443,111,520

$0.8660*13,158,852

$0.28178,662,815

International Dairy Markets September 16, 2016

Oceania Butter: 82 percent butterfat $3,850(+650)-$4,000(+400). Cheddar Cheese: 39 percent maximum moisture $3,400(+200)-$3,625(+125).Skim Milk Powder: 1.25 percent butterfat $2,275(+275)-$2,300(+100).Whole Milk Powder: 26 percent butterfat $2,750(+150)-$2,950(+50).Source: Dairy Market News. Prices reported in U.S. dollars per metric ton, F.O.B. port. To convert to price per pound: divide price by 2,204.6 pounds.

Western Europe Butter: 82 percent butterfat $4,100(+200)-$4,300(+200).Butteroil: 99 percent butterfat $3,975(-75)-$4,450(-50).Skim Milk Powder: 1.25 percent butterfat $2,150(+100)-$2,250(+100).Whole Milk Powder: 26 percent butterfat $2,750(+100)-$2,900(+100).Whey Powder: Nonhygroscopic $850(+50)-$925(+25).

Percent change versus

*Source: U.S. Department of Commerce. For index, prices during 1982-84 = 100.

Cheese & related productsDairy & related products All Food

2 years -4.8-4.8

+1.6

1 year -2.4

-2.4 +0.0

6 mo. -2.2 -1.9-0.4

August 2016 226.399215.506247.719

1 mo. -0.1 +0.4

+0.1

RETAIL PRICES (Consumer Price Index*)

Page 4: Preference for ‘natural’ boosts annatto extract …...carotene in the milk, producing a richer cheese color,” Potter says. “When marketing it on a large scale, they wanted

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4 CHEESE MARKET NEWS® — September 16, 2016

Trevor W. Slegers is a risk manage-ment advisor at Rice Dairy*, a bro-kerage fi rm in Chicago that special-izes in dairy and markets at dairy’s periphery. He contributes this col-umn exclusively for Cheese Market News®.

Perspective:Dairy Markets

The ‘longest’ participantin dairy: the European Union

G U E S T C O L U M N I S T C M N E x c l u s i v e !

Every year or so there seems to be one over-arching theme that the dairy market focuses on domestically or internation-ally. In early 2015 the focus was on New Zealand and its milk production. At the time, the threat of a drought pushed the U.S. spot nonfat dry milk (NDM) price more than 20 cents higher in less than one month. After that move, folks who had never heard of pasture growth indexes in their life were rushing to the nearest Bloomberg Terminal to chart its every move. This year though, while the subject remains international, the focus moves to the European Union (EU).

At present, there are a couple of different elements driving the market, which are causing repercussions back here in the United States. First, the much anticipated removal of quota, which was made offi cial April 1, 2015, increased milk production across the continent.

Prices did what prices usually do when supply runs rampant and took a nosedive.

Ultimately that lead to the second as-pect of the EU market that my colleagues, other peers in the industry and myself have been forced to pay close attention to: public intervention. Questions on its specifi c workings, effects on the market and game-plans going forward have been fl ooding in-boxes and have been the point of many conversations worldwide. At its core, public intervention is used as one of the tools by the European Commis-sion to help farmers and stabilize price. While it has been available in both skim milk powder (SMP) and butter markets, powder is the product that has used its capabilities to its full potential for the better part of a year and a half. Over that period of time, more than 300,700 metric tons (as of Aug. 29) have been of-fered into the program. Now that current market prices are trading clear above the intervention level, market participants are wondering where we go from here and what will happen to powder currently sitting in storage.

Intervention fi rst came into play in the summer months of 2015 when prices grinded to levels not seen since 2009. Underlying fundamentals surrounding the market spelled bearishness for the

months leading up to the 31-year long milk quota offi cially coming to an end, resulting in a sharp increase in milk production across the continent. Add to that the ongoing issue of Russia being out of the market because of its import ban, more milk going to SMP production and China’s once insatiable demand for dairy depleting, and in the minds of farmers you end up with a trigger for subsidies.

Increased milk production by those farmers in the late-2015 to early-2016 months led to increases of 5 percent to almost 10 percent by February for EU-28 countries. After the powder EEX futures price rose to more than 2,300 euros per metric ton (due to the afore-mentioned threat of drought in Oceania) prices spent the spring and early summer tumbling more than 25 percent, falling to 1,675 euros per metric ton by early autumn.

Cue the commission buying. At a fi xed price of 1,698 per metric ton ($0.87/lb. in today’s market) product began being offered into intervention. By the end of 2015, total volume reached 41,328 metric tons, then reset for the new year. Throughout this year, volume continued to pour into the government scheme in an effort to support prices. Initially the scheme was scheduled to end by the end of September, but with market condi-tions remaining largely unchanged, the EU announced an extension until the end of this year when it will most likely reset and remain open until the end of September 2017. Not only was the com-mission forced to put through multiple extensions, but it also was pressured to raise the ceiling of product from 109,000 metric tons to 218,000 metric tons on April 20, only to be lifted again on June 30 to where it stands now at 350,000 metric tons, more than 3 times the original limitation.

So, as it currently stands, the EU holds the largest inventory of SMP in the world. Furthermore, everyone knows this. As the government is not an end user, the product must return to the market. The question now is, with current spot and futures prices trading above intervention levels, when and how will product held in inventory come out to the marketplace?

Unfortunately, there is no clear an-swer. We can look at history, when back in 2009, the government waited until prices got to 2,300 euros per metric ton before releasing product, but that is no guarantee it will do the same this go around. Speculation and rumors are that the government will almost always try to make intervention a profi table service, waiting for the opportune time to commence the sell-back. On a positive note, the European Commission itself is a consumer of dairy, through various food and aid programs, so there is in some respects an alternative to a bulk release of product on the market. Additionally, time is on its side given product must be less than 3 months old to be accepted in the program and shelf life exceeds 3 years, if stored properly.

At the end of the day, will the mar-ket be resilient enough to take on the excess powder currently not in the marketplace? The opportunistic side of me believes it will. While supply has massively out-paced demand, demand itself has been healthy, and as the two forces come back into line, there is rea-sonable cause to believe that the surplus will eventually be absorbed. The latest fi gures of the amount of powder going into intervention have diminished to

116 metric tons for week of Sept. 5, as the trend continues to zero.

Thanks to EU milk production see-ing more rebalance, the EEX futures have bounced back nicely, pricing the rest of the year between 2,140-2,200 euros per metric ton and even reaching 2,300 euros per metric ton by mid-2017. The Oceania market has picked up steam as well with Global Dairy Prices seeing three consecutive positive auctions. Overall it seems as though global demand for powder is starting to pick back up after being ab-sent for some time, which is welcomed words for the “longest” participant in dairy: the European Union. CMN

The views expressed by CMN’s guest columnists are their own opinions and do not necessarily refl ect those of Cheese Market News®.

*These observations include information from sources believed to be reliable, but no independent verifi cation has been made and therefore their ac-curacy and completeness cannot be guaranteed. Opinions and recommendations expressed are the opinion of the authors and are subject to change without notice. The risk of loss in trading futures contracts or commodity options can be substantial, and investors should carefully consider the inherent risks of such an investment in light of their fi nancial condition. The views expressed by CMN’s guest colum-nists are their own opinions and do not necessarily refl ect those of Cheese Market News®.

NEWS/BUSINESS

USDA awards cheese contracts, seeks moreKANSAS CITY, Mo. — USDA recently an-nounced it will be purchasing cheese from Associated Milk Producers Inc. (AMPI), Dairy Farmers of America (DFA) and Saputo Cheese USA in support of USDA domestic food distribution programs.

AMPI will supply 316,800 pounds of 6/5-pound regular process cheese loaves for a price range of $1.9400-$1.9950 per pound for a total of $622,512. The cheese will be delivered Nov. 16-Dec. 31, 2016.

In addition, DFA will supply 322,560 pounds of 8/6-pound frozen low-mois-ture part-skim Mozzarella loaves for $584,059, and Saputo will supply 604,800 pounds of the same cheese type for $1.01

million. All told the cheese will be sold to USDA for $1.6643-$1.8285 per pound for a total of $1.59 million. The cheese will be delivered Oct. 1-Nov. 30, 2016.

This week, USDA also solicited an additional 98.1 million pounds of Moz-zarella in various formats. Offers to supply the product are due in Kansas City by 9 a.m. Central Time Sept. 23. USDA also is soliciting an additional 60.2 million pounds of process cheese in various formats. Offers are due in Kansas City by 9 a.m. Sept. 29.

For more information, v is -i t h t t p s : / / p o r t a l . w b s c m . u s d a .gov/publicprocurement. CMN

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CHEESE MARKET NEWS®

Retail WATCHN E W S & M A R K E T I N G I D E A S T O H E L P S E L L M O R E C H E E S E

September 16, 2016 — CHEESE MARKET NEWS® 5

Also in Retail WATCH: Global Cheese Awards named … Page 6 Marin French, Laura Chenel’s add spicy cheeses … Page 8

BelGioioso moves forward with classic cheeses, new creations

Turn to BELGIOIOSO, page 7 a

By Kate Sander

GREEN BAY, Wis. — Providing con-sumers with top quality Italian cheeses in convenient formats continues to be the hallmark of BelGioioso Cheese Inc., a family-owned Italian cheese company based in Green Bay, Wisconsin.

“Quality cheese speaks for itself,” says Gaetano Auricchio, BelGioioso vice president, who notes that the company’s commitment to tradition and excellence carries with it the value of knowing how to make Italian cheeses just as they were made long ago from recipes passed down by generations. “We’re consistent, we provide great customer service and have fair pricing.”

Though the company has grown tremendously in the nearly 40 years since Gaetano Auricchio’s father, Errico, moved from Italy to the United States to pursue cheesemaking on this side of the Atlantic, the passion for tradition and quality has never diminished.

BelGioioso Cheese currently op-erates eight locations in Wisconsin with a ninth cheesemaking operation in New York. Last year, the company completed an expansion of its packag-ing facility in Ledgeview, Wisconsin, and a brine capacity expansion at its Chase, Wisconsin, plant. This year, the company continues to add to its Led-geview facility, expanding its shipping and distribution areas.

Tradition, selection of ingredients, location and artisan inspiration are pil-lars of what makes BelGioioso Cheese a strong business, Gaetano Auricchio says, noting another of the company’s strengths is that it does all of its own converting.

“We have unique control of the pro-cess from A to Z,” he says.

In recent years, the company has codified these thoughts into its “9 Secrets of BelGioioso.” Prominently highlighted on the company’s website, these nine secrets ultimately defi ne who the company is.

The fi rst secret — History, Tradition, Passion and Family — is evident the moment the Auricchios begin discuss-ing their business. In fact, “secret” is a bit of a misnomer; in reality, the secrets are what the company strives to achieve each day.

“It’s our story; it’s who we are and

CUSTOM CREATION — To reach consumers looking for high-end artisan cheeses, BelGio-ioso recently introduced its La Bottega line, which includes a number of specialty cheeses including its custom-created La Bottega di BelGioioso Artigiano. Artigiano is created in small batches and cured using proprietary, artisan methods to achieve its delicate crystal-line texture and nutty and sweet fl avor.

that are delicately hand scooped into the wheel molds. The cheese is placed in a high-moisture environment where it starts to ferment and expand. The wheels are then pierced to allow oxy-gen to enter and the mold to grow. The cheese is aged 90 days and also receives a repeated hand washing with brine throughout this process. The cheese is creamy soft and spreadable with an earthy subtle fl avor.

BelGioioso’s Crumbly Gorgonzola has a drier, crumbly curd and is pressed into wheels. This cheese also spends time in a high-moisture environment and is pierced to help develop mold and aged for 90 days. The texture is fi rmer and drier than the CreamyGorg and has a more robust fl avor. The sheep’s milk Gorgonzola is made in a similar way, but with a different end result, with the

what we do each day,” Auricchio says of the nine secrets. “It’s a collaborative document, and each secret is important to our overall success.”

Many of the secrets pertain to qual-ity milk and artisan cheesemaking methods. This begins with using milk from dairy farms located near each of the company’s plants.

“We start with fresh milk and our own starter cultures. We have control over our ingredients and can refi ne recipes if needed,” Auricchio says.

BelGioioso’s cheeses range from the traditional — the company is a leader in Provolone, Parmesan and Fresh Mozzarella sales — to new creations from the company’s Wisconsin Master Cheesemakers.

Provolone is the fi rst cheese the company produced when it started in 1979. It is made from a traditional family recipe. All of it is aged, with Mild a minimum of 60 days, Medium a mini-mum of 5 months, Sharp a minimum of 7 months and Extra Sharp a minimum of 12 months. The company also has a 24-month aged Provolone. The extra aged Provolone has the most intense aroma, and the fl avor is spicy, nutty, sharp and earthy.

The company also is known for its American Grana — a cheese it says is a combination of Old World craftsmanship with New World ingenuity. The cheese is formed into 70-pound wheels and aged a minimum of 18 months. Each wheel is cleaned and turned during the aging process, which helps develop layers of sweet, nutty fl avor and a deep aroma. The fl avor engages the whole palate without becoming overwhelming, the company says.

The company’s Parmesan, which Auricchio says is uniquely made with the company’s proprietary starter cultures, is aged a minimum of 10 months with the wheels hand-turned throughout the aging process for consistent fl avor development. The cheese has sweet, nutty tones with a pleasant fi nish, the company says.

While Provolone and Parmesan are somewhat standard cheeses in the in-dustry, Auricchio is quick to note that “not all Parmesan and Provolones are created equal.”

The company also offers a completely different taste profi le with its clean-

fl avored pearl-white BelGioioso Fresh Mozzarella, which is available in a number of different sizes. Setting itself apart from the competition, BelGioioso has won numerous awards over the years, with its Fresh Mozzarella leading the way. Recent awards for the company in-clude fi rst place for Burrata, Ricotta con Latte and Fresh Mozzarella Prosciutto Basil Roll in the World Championship Cheese Contest. At this summer’s American Cheese Society competition, the company also received a fi rst place with its Fresh Mozzarella.

BelGioioso Cheese’s Gorgonzola also continues to do well, and currently the company makes three types: Creamy-Gorg, Crumbly Gorgonzola and Crumbly Gorgonzola with Cow & Sheep’s milk.

CreamyGorg, a BelGioioso Cheese registered trademark, is a Gorgonzola Dolce, an Italian recipe which starts with soft, large, high-moisture curds

Photo courtesy of BelGioioso Cheese Inc.

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6 CHEESE MARKET NEWS® — September 16, 2016 R E T A I L R O U N D - U P

For more information please visit www.dairyfoodusa.com

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2819 County Road F • Blue Mounds, WI 53517 Ph: (608) 437-5598 • Fax: (608) [email protected] • www.dairyfoodusa.com

Call us today for details:

Celebrating Successful Partnerships for 60 Years!

WASHINGTON — U.S. per capita cheese consumption in 2015 reached a record 35.0 pounds, up from 34.1 pounds in 2014, according to data recently released by USDA’s Economic Research Service (ERS).

In the recent report, ERS says Ameri-can-type cheese per capita consumption was 14.0 pounds in 2015, up from 13.6 pounds in 2014, and per capita consump-tion of other types of cheese rose to 21.0 pounds, up from 20.5 pounds in 2014.

ERS will release a report on per capita

U.S. per capita cheese consumption hits 35 pounds, USDA’s Economic Research Service saysconsumption of selected cheese varieties at the end of the month.

For all dairy products on a milk equivalent, milkfat basis, per capita consumption totaled 627 pounds, up 13 pounds from 2014, ERS says. Per capita consumption of dairy products has stayed above 600 pounds since 2005.The overall gains are despite a decline in fl uid milk consumption. ERS reports per capita consumption of beverage milks declined to 155 pounds in 2015, down 4

pounds from 2014. Other than one year of a small increase and one year of no decline, consumption of fl uid milk has steadily declined since 1975, the fi rst year listed in this ERS report, when it was 247 pounds.

Meanwhile, per capita butter con-sumption in 2015 rose to 5.6 pounds, up from 5.5 pounds. Per capita butter consumption jumped from 4.9 pounds in 2010 to 5.4 pounds in 2011, then held at 5.5 pounds from 2012 through 2014.

Per capita yogurt consumption dropped 0.1-pound to 14.7 pounds in 2015. Per capita yogurt consumption has been above 10 pounds since 2005 and rose to 14.9 pounds in 2013 before dropping 0.1-pound in the last two years, according to ERS.

Per capita consumption of cottage cheese, which is not included in the cheese total, was 2.1 pounds in 2015, the same as the two previous years. Per capita cottage cheese consumption has been on a downward trend over the last 40 years; in 1975 it was 4.6 pounds.

ERS reports per capita regular ice cream consumption rose 0.4-pound from a year earlier to 13.1 pounds in 2015. Despite the increase, per capita regular ice cream consumption also has generally declined since 1975, when it was 18.2 pounds.

Per capita reduced-fat ice cream consumption was 6.5 pounds in 2015, up from 6.3 pounds in 2014. Per capita reduced-fat ice cream consump-tion was 7.7 pounds in 1975. CMN

FAIRFIELD, N.J. — Schuman Cheese recently announced plans to launch new Cello Cheddar Whisps while show-casing its Cello Whisps product line later this month at Natural Products Expo East in Baltimore.

Cello Whisps are crafted by artisan cheesemakers in Wisconsin and contain no artifi cial colors or fl avors. Cello Par-mesan Whisps are made with shavings of 100-percent pure 14-month-old Parmesan, baked into airy and crispy “whispy” bites. Due to overwhelming consumer feedback, Schuman Cheese says, the company has expanded its Whisps line to include Cello Cheddar Whisps made from Cello Cheddar Cheese. The new product already has won a gold medal at the 2016 World Champion-ship Cheese Contest held earlier this year.

Schuman Cheese to launch Cheddar Whisps“Cheddar Whisps, along with our

popular Parmesan Whisps, highlight Schuman Cheese’s commitment to de-livering an innovative, addictive, gluten- and wheat-free, pure cheese snack that contains only a single ingredient — our very own cheese,” says Ilana Fischer, vice president of innovation and strategy, Schuman Cheese.

Schuman Cheese will offer samples of both fl avors of Whisps, along with its Cello Copper Kettle Parmesan used to make Cello Parmesan Whisps, Sept. 22-24 at booth 6866 during Natural Products Expo East.

Cello Whisps are available both at retail and for foodservice mar-kets. For more information, visit http://cellowhisps.com. CMN

FROME, England — A Blue Stilton from England’s Long Clawson Dairy was named Champion out of more than 1,000 entries at the 2016 Global Cheese Awards, which took place here Sept. 8. Reserve Champion went to Gorgonzola Piccante PDO from Italy’s Cairati Creamery, distributed by Castelli UK Ltd.

Blue Stilton from Long Clawson Dairy also received UK Supreme Cham-pion and Reserve Champion awards.

Sartori Co. of Plymouth, Wisconsin, won the gold medal for Best USA Cheese with its Sartori Reserve SarVecchio Parmesan. Joseph Gallo Farms, Atwater, California, earned the silver and bronze medals in this category for its part-skim Mozzarella and whole-milk Mozzarella, respectively.

Sartori’s Reserve SarVecchio Par-mesan also won a gold medal for Best Non-EU Cheese and a bronze in the Cheese with Health Benefit class. Sartori Classic Parmesan won gold and Sartori Classic Asiago won bronze for Best Italian-Style Hard Cheese, while

Sartori Co., Joseph Gallo Farms awarded medals at England’s Global Cheese Awards

Sartori swept the gold, silver and bronze medals with its Reserve BellaVitano Gold, Reserve Kentucky Bourbon Bel-laVitano and Limited Edition Cognac BellaVitano, respectively, in the Other Overseas Cheese class open to non-European countries.

Sartori Reserve Balsamic BellaVitano won silver in the Cheese with Sweet Ad-ditives class; Sartori Reserve Chipotle BellaVitano won silver in the class for Cheese Brought to Market in the Past 12 Months; and Sartori Limited Edition Pastorale Blend tied for bronze in the Best Mixed Milk Hard Cheese class.

Joseph Gallo Farms also won a number of awards, including gold for its Pepper Jack, named Best USA Cheese with Additives, and silver for its Sharp Cheddar under Best USA Cheddar (no gold or bronze medals were awarded in this class). Joseph Gallo Farms also won gold in the Mild Cheddar class, silver and bronze in the Overseas Organic Cheddar class, bronze in the Medium Cheddar class and bronze in the Mature Cheddar class. CMN

DES MOINES, Iowa — Farmstead goat’s milk cheesemaker Reichert’s Dairy Air of Knoxville, Iowa, won Best of Show honors for its Torta a Strattie du Latte at the new Iowa Quality Dairy Products Contest, judged prior to the start of the 2016 Iowa State Fair.

Results in each of the contest’s classes include:Butter

First: Kalona SuperNatural, Kalona, Iowa, Kalona SuperNatural Organic Lightly Salted Butter.

Second: Kalona SuperNatural, Kalo-na, Iowa, Kalona SuperNatural Organic Unsalted Butter.Cultured Dairy Products

First: Country View Dairy, Hawkeye, Iowa, Plain 1-percent Yogurt.

Second: Country View Dairy, Hawk-eye, Iowa, Strawberry Cream-Top Yogurt.

Reichert’s Dairy Air wins Iowa State Fair contest with its Torta a Strattie du Latte

Third (tie): Country View Dairy, Hawkeye, Iowa, Raspberry Cream-Top Yogurt.

Third (tie): Country View Dairy, Hawkeye, Iowa, Vanilla Cream-Top Greek Style Yogurt.Goat/Sheep Milk Cheeses:

First: Reichert’s Dairy Air, Knoxville, Iowa, Torta a Strattie du Latte.

Second: Reichert’s Dairy Air, Knox-ville, Iowa, Robiola di Mia Nonna.

Third: Doe’s and Diva’s Dairy Inc., Honey Creek, Iowa, Feta with Basil.Cow Milk Cheese

First: Cinnamon Ridge Farms, Donahue, Iowa, Tomato Basil Garlic Cheese Curds.

Second: Cinnamon Ridge Farms, Do-nahue, Iowa, Whiskey Mustard Cheese Curds.

Third: Frisian Farms Cheese, Leigh-ton, Iowa, Gouda Curds. CMN

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September 16, 2016 — CHEESE MARKET NEWS® 7 R E T A I L I N G P E R S P E C T I V E S

For more information please visit www.belgioioso.com

877.863.2123 belgioioso.com/eatwellrBST Free* | Gluten Free | Vegetarian | Antibiotic Free*No significant difference has been found in milk from cows treated with artificial hormones.

The perfect 70 calorie snacks

sheep’s milk creating a slightly creamy texture and distinct full fl avor.

Many of these cheeses are included in the company’s retail marketing programs this year. An “Eat Well” campaign in the spring promoted Fresh Mozzarella, Ricotta con Latte and Mascarpone. The company’s summer promotion highlighted a “Salad Savvy” theme promoting convenient shreds, grates, shaves and crumbles. This fall’s promotion is “Tastefully Easy Entertain-ing” including table cheese wedges, Provolone, Crescenza-Stracchino, Marinated Fresh Mozzarella, Unwrap & Roll and Fresh Mozzarella, Prosciutto and Basil Roll.

Capitalizing on America’s snacking trend, BelGioioso continues to focus on making these cheeses in consumer-friendly formats.

Its award-winning Fresh Mozzarella is available in grab-and-go 1-ounce pack-ages of three Ciliegine balls, perfect for snacking and only 70 calories per serv-ing. The company also has introduced a 0.75-ounce snacking size for its Fontina and has created a 3-ounce Mini Mascar-pone cup designed for freshness and convenience and a 5-ounce Mini Ricotta single-serve cup.

While BelGioioso only utilizes a minimal amount of anti-caking agents in products when needed, in response to some consumers’ and chefs’ con-cerns about the category, the company recently introduced a new Natural line of shredded and grated cheeses in both foodservice and retail sizes. The selec-tion of shredded, grated and shaved cheeses are packed in unique, light-weight, re-sealable cups and contain just three ingredients — milk, enzymes and salt — and no anti-caking agents or preservatives.

To reach consumers looking for high-end artisan cheeses, BelGioioso this summer also introduced its cus-tom-created La Bottega di BelGioioso Artigiano. Artigiano is created in small batches and cured using proprietary, artisan methods to achieve its delicate crystalline texture and nutty and sweet fl avor. Available in a Classico variety as well as Vino Rosso and Aged Balsamic & Cipolline Onion fl avors, the cheese is available in whole wheels for cut-and-wrap programs or pre-cut 4-ounce exact-weight wedges.

The cheese is being marketed under the La Bottega di BelGioioso brand, a new line of small pieces of hand-selected superior quality cheeses that ensure consistency and the best fl avor, texture, aroma and authenticity. Other cheeses in the line include Crescenza-Stracchino, American Grana, Provolone Extra, Peperoncino and cow and sheep’s milk blended Gorgonzola.

Another of the company’s secrets is its food safety practices, and despite rapid growth BelGioioso Cheese has maintained a commitment to tradi-tional cheesemaking while adopting modern procedures that guarantee the consistency and safety of the cheeses. In

addition to all required state and federal certifications, BelGioioso’s facilities have received SQF (Safe Quality Foods) Level 3 certifi cation, the highest level of food safety certifi cation possible.

“The procedures we have in place al-low us to trace the cheese from the farm to the retailer’s shelf and beyond. It is a testament to our commitment to produce safe, quality cheese,” Auricchio says.

“Quality never stops” is the secret that is taking BelGioioso into the future. Just as his great-grandfather taught him the secrets to making quality cheese, Errico Auricchio is continuing the legacy by passing on these artisan methods to his children. Through Errico’s children, BelGioioso will continue to grow and will never lose its passion.

When asked what the company’s goals are for 2017, Gaetano Auricchio puts it simply: “To continue mak-ing top-quality cheeses!” CMN

PROVOLONE VARIETY — BelGioioso Cheese’s Provolone is made from a traditional family recipe. All of it is aged, with Mild a minimum of 60 days, Medium a minimum of 5 months, Sharp a minimum of 7 months and Extra Sharp a minimum of 12 months. The company also has a 24-month aged Provolone.

Photo courtesy of BelGioioso Cheese Inc.

BELGIOIOSOContinued from page 5

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8 CHEESE MARKET NEWS® — September 16, 2016

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DENVER — The National Football League (NFL) and its partners re-cently announced a renewed com-mitment to the “Hometown Grants” program. The initiative, developed by the NFL and Fuel Up to Play 60 in 2014, provides grants to support physi-cal activity and nutrition programs in school districts in all 32 NFL markets.

NFL, National Dairy Council announce renewed commitment for youth health, wellnessThis year the National Foundation

on Fitness, Sports and Nutrition will join the partnership, which, as of press time, has provided nearly $1 million to schools across the nation.

Through the Hometown Grants pro-gram, NFL teams and state/regional dairy organizations identify deserving schools in their communities to receive funding

to help encourage physical activity and healthy eating programs for students. The program has provided more than 700 schools with funds and resources.

“Mobilizing communities to advocate for and implement healthy changes in schools nationwide requires collabora-tion at the local and national level,” says Mark Leitner, executive vice president, Fuel Up to Play 60. “Fuel Up to Play 60 is making an impact in schools through the unwavering support of the NFL and leaders like the National Foundation on Fitness, Sports and Nutrition. Working together we are able to empower stu-dents, teachers and entire communities

to go from zero to 60 every day by fuel-ing up with nutritious foods and being physically active for at least 60 minutes.”

This year, the National Foundation on Fitness, Sports and Nutrition will join the partnership and provide resources, such as assessment software and train-ing tools, to help schools implement the Presidential Youth Fitness Program. The donation is being made as part of the foundation’s #0to60 campaign honoring the 60th anniversary of the President’s Council on Fitness, Sports and Nutrition.

The learn more about Fuel Up to Play 60 and the program, vis-it www.fueluptoplay60.com. CMN

PETALUMA, Calif. — Petite Jala-peño, a triple-cream Brie with red and green jalapeño peppers, has been added to Marin French Cheese’s Petite Collection of 4-ounce wheels, while its sister company Laura Chenel’s has introduced a Pimento & Garlic fresh goat cheese log following the success of its recently-launched Spicy Cabecou Chèvre marinated in jalapeño-infused olive oil and crushed chilies.

Marin French Cheese’s Petite Jala-peño as well as its 8-ounce counterpart, Jalapeño Brie, refl ect consumers’ ongo-ing desire for piquant fl avors, the com-pany says. Made with fresh cow’s milk and cream, the soft-ripened cheese’s smooth texture and creamy taste counterbalance the heat from the jalapeño peppers.

Laura Chenel’s new 8-ounce Pimento & Garlic log blends fresh goat’s cheese with garlic and sun-dried tomatoes, then is coated with red and green pimento peppers. The sweetness of the California sun-dried tomatoes is balanced by the

Marin French, Laura Chenel’s roll out spicy additions to Petite Brie, Chevre log lines

subtle spicy and green pepper notes from the pimentos.

With a different fl avor profi le and usage, Laura Chenel’s Spicy Cabecou is a dense, marinated goat cheese disk. Cut from fresh logs, the cheese rounds are dried on racks before being hand-packed in jalapeño-infused olive oil with savory chili peppers, giving a kick to the fresh taste of the Chèvre.

“With so many choices for consumers, it remains Laura Chenel’s mission, as the pioneer of American goat cheese, to offer the highest quality products, which includes using only goat milk from farms in western U.S.,” says Philippe Chevrol-lier, general manager at Marin French Cheese and Laura Chenel’s. “We aspire to please as many palates as possible while remaining true to our roots and supporting our network of independent goat farmers.”

For more information, visit www.marinfrenchcheese.com and www.laurachenel.com. CMN

DENVER — The American Cheese Society (ACS) has announced that 155 individuals passed ACS’ sixth Certifi ed Cheese Professional Exam, which was held in Des Moines, Iowa, in July.

This class of ACS Certifi ed Cheese Professionals (ACS CCPs) is comprised of individuals from 51 different compa-nies in the United States and Canada. There are now 740 ACS CCP individu-als across the United States, Canada and Europe, the society says.

The ACS CCP Exam was launched by ACS in 2012 to encourage high stan-dards of comprehensive cheese knowl-edge and service for professionals in all areas of the industry. The exam is based on the knowledge and skills re-quired to successfully perform cheese-related tasks in various jobs within the industry, including topics such as raw ingredients, the cheesemaking process and nutrition, ACS says.

“We congratulate these individuals on this tremendous professional ac-complishment,” says Nora Weiser, ex-ecutive director, ACS. “The level of un-derstanding and professionalism that

ACS names Certifi ed Cheese ProfessionalsACS CCPs bring to the industry bene-fi ts everyone, from the cheesemaker to the consumer, and elevates an already-thriving artisan cheese industry to an entirely new level.”

Each ACS CCP receives an offi cial lapel pin, embroidered patch and a certifi cate, along with the title of ACS CCP. All recipients are required to demonstrate continued active partici-pation and professional development within the cheese industry to maintain credentials, and they must recertify ev-ery three years, ACS says.

The next exam will be held July 26, 2017, in Denver. Cheese professionals who meet the eligibility requirements outlined on the ACS website are en-couraged to apply early, as space is limited. Applications will be accepted from Jan. 7 to March 31, 2017.

For application information, visit www.cheesesociety.org/events-education/certifi cation-2/. To learn more about the exam, visit www.certif iedcheeseprofessional.org. For more information about ACS, visit www.cheesesociety.org. CMN

NEW YORK — Results from “Cooking with Cheese at Home,” a survey by Yellow Door Creamery, a new brand of Schuman Cheese (See “Schuman Cheese — new name highlights 70 years of quality, moves business into the future” in the June 24, 2016, issue of Cheese Market News), have revealed that cheese remains a staple of the American diet, but that its odor, mess and diffi culty to preserve de-ters some customers from cooking with it.

Among other fi ndings, the survey revealed that nearly 90 percent of con-sumers feel that cheese enhances the overall taste and presentation of a dish, more than 80 percent of respondents eat cheese either every day or multiple times a week but avoid cooking with it at home, and 70 percent of consumers reported they would cook with cheese more often if negative qualities were able to be avoided.

Yellow Door Creamery offers cooking cheeseTo address the survey results, Yellow

Door Creamery has delivered a line of options to home chefs that aim to resolve issues typically associated with cheese. Now, consumers can enjoy sliceable, portioned for single use, dust-free and non-clumping cheese.

“Yellow Door Creamery believes that cooking at home should be enjoyable, with taste a kitchen priority,” says Ilana Fischer, vice president of innovation and strategy, Schuman Cheese. “The Yellow Door Creamery’s one-of-a-kind collection not only appeals to the senses through its unique fl avor profi les, but it’s trendsetting approach will hopefully encourage consumers to enjoy cooking in their own homes.”

Schuman Cheese recently launched Yellow Door Creamery to comple-ment its fl agship brand, Cello, as a platform for experimentation. CMN

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September 16, 2016 — CHEESE MARKET NEWS® 9

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FSPCA preventive controls course is Oct. 11-13MILWAUKEE — Accelerated Ana-lytical Laboratories and Accelerated University have announced that their Food Safety Preventive Controls Alliance (FSPCA) Preventive Con-trols for Human Food course will take place Oct. 11-13 at the Hilton Garden Inn Milwaukee Park Place.

The new FSMA Preventive Controls for Human Food requires that every processing facility have at least one individual trained through the FSPCA curriculum or equivalent, who oversees the implementation of the facility’s food safety plan, according to organizers.

As such, Accelerated University has created the 2.5-day class, which will be

taught by FSPCA lead instructor Dr. Mark A. Daeschel, PhD, M.S. Daeschel has been a certifi ed food scientist with the Institute of Food Technologists, organizers say.

The course is for directors of food safety, maintenance managers, pro-duction supervisors and leads, plant managers and regulatory personnel, among others.

Cost to attend is $750 per person. If two or more people from the same company register at the same time, the cost is reduced to $700 per person.

T o r e g i s t e r , v i s i t www.aaluniversity.org. For more in-formation, contact David Metzger at [email protected]. CMN

2017 Global Cheese Tech Forum is in RenoRENO, Nev. — The 2017 Global Cheese Technology Forum, presented by the American Dairy Products In-stitute, will be Oct. 24-26, 2017, at the Peppermill Resort in Reno, Nevada.

The forum will address concerns and developments relevant to cheese and whey product manufacturers.

Topics will include cheese microbiol-ogy and chemistry, cheese processing technology and whey processing and applications. A CEO panel discussion on cheese and whey challenges also will be held, according to organizers.

For more information, visit www.globalcheesetechnologyforum.org. CMN

Introduction to Dairy Processing and Management course will be Oct. 11-13 at Ohio StateCOLUMBUS, Ohio — An Introduc-tion to Dairy Processing and Manage-ment course will be held Oct. 11-13 on the Ohio State University campus.

In the course, participants will learn the processing technologies and practices of a fl uid milk plant operation from the farm all the way to the customer, organizers say.

Areas of study include fl uid milk, yogurt, cheese and frozen dairy desserts. Other topics covered are physical and

chemical properties of fl uid milk and milk components, raw milk quality sup-ply and good manufacturing practices.

The course is intended for plant supervisors, operation managers, qual-ity supervisors and anyone new to the dairy industry.

Cost to attend is $1,100 per person until Sept. 27. After this date, the registration cost is $1,150. Parking passes are $7 each day and are required if parking on the campus.

For more information or to reg-ister, visit http://foodindustries.

osu.edu/events/introduction-dairy-processing-and-management. CMN

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10 CHEESE MARKET NEWS® — September 16, 2016

ANNATTOContinued from page 1

For more information please visit www.cheesemarketnews.com

NEWS/BUSINESS

demand,” Barnum says. “Certainly to have a large brand like Kraft Mac & Cheese switch has had an effect.”

The price of annatto color solutions varies depending on the format and concentration used in different applica-tions. Despite rising prices, Steffensen says he does not expect demand to slow as consumers continue to demand natural ingredients.

“Natural colors, while expensive, still make up less than 1 percent of the retail price of most food items,” Steffensen notes. “And in this new food world, consumers simply expect that level of quality.”• Supply challenges

Among the challenges in balanc-ing annatto supply with demand are those that come with any crop that is subject to weather and other local variables.

Since annatto comes from trees that take three to four years to mature, farm-ers can’t plant and harvest more supply on short notice, DDW notes. Instead, they need to plan in medium- to long-term cycles, looking ahead at least fi ve or more years.

Furthermore, DDW notes, the ma-jority of annatto comes from smaller suppliers in regions with underdevel-oped agricultural sectors. The crop competes with others such as cashews, coffee, bananas and cocoa. If prices of these competing crops rise or timing of harvest overlaps, farmers may prioritize these other crops over annatto, reduc-ing its supply.

Pernille Arskog, commercial techni-cal manager, Chr. Hansen, says about every three to four years she has seen a wide fl uctuation in annatto prices such as the recent increase.

“It’s about how much is actually grown and how good the yield is,” she

says. “As a company, we can work dili-gently with farming practices, transport and production, but we cannot control the weather. Natural colors are real food.”

Weather is one uncontrollable factor that has contributed to rising annatto prices in addition to increased demand. Steffensen notes that in the last two to three months, key mar-kets such as Brazil have experienced drought and frost that have impacted about 30 percent of the annatto pro-duction.

“Once and now again, there might be an exceptionally bad harvest,” he says. “From our perspective, there’s no doubt we’re entering a period where prices of annatto will go up. It’s signifi cant, but not more than we have handled in the past. We’re going to work through it with the farmers and our customers.”

Both Chr. Hansen and DDW spread their sourcing out among various regions in an effort to mitigate raw material fl uctuations.

In addition to working with its suppliers to achieve a sustainable, high-quality annatto yield, Steffensen says, Chr. Hansen diversifi es its supply market to include multiple continents in both hemispheres.

“We have a very established footprint in key markets with over 100 years of creating relationships with farmers and sourcing only high-quality annatto,” he says. “If a harvest is poor in Brazil, our global sourcing setup allows us to source raw material from other markets like Kenya. We have offered annatto for a long time and have always managed these fl uctuations.”

Prices, however, are expected to remain high in the near future. DDW says based on supply and demand fun-damentals, annatto prices will remain high in the short term, at least through the next six months. Chr. Hansen estimates a better harvest next year with better annatto yields. CMN

to initiate a WTO dispute settlement proceeding against Canada once the agreement details are announced.

“For years U.S. exporters have borne the brunt of a continuing procession of new Canadian policy tools intended to curtail dairy imports,” says Tom Suber, president, USDEC. “TPP has included new features to move toward more open trade by expanding market access com-pared to the status quo, but Canada’s been doing its best to erode longstanding existing access as much as possible be-fore this agreement is even put in place.”

In addition to USDEC, IDFA and NMPF, the other dairy groups who signed the letter include: the Australian Dairy Industry Council, the European Dairy As-sociation, the European Whey Products Association, the European Association of Dairy Trade, Mexico National Chamber of Industrial Milk and the Dairy Compa-nies Association of New Zealand.

This letter follows another recently

sent to U.S. trade and agriculture lead-ers by Sens. Chuck Schumer, D-N.Y., and Tammy Baldwin, D-Wis., urging an in-vestigation into Canadian dairy policies that they said could raise compliance issues with NAFTA and WTO obligations. (See “Senators urge investigation into Canada diary pricing policies that impact U.S. exports” in the Sept. 2, 2016, issue of Cheese Market News.)

“The dairy trade situation with Canada has gone from bad to worse this year, and now Canada is contemplating doubling down on that terrible track record,” says Jim Mulhern, president and CEO, NMPF. “Enough is enough; Canada needs to stop shirking its dairy commitments and hold up its end of already negotiated agreements.”

Connie Tipton, president and CEO, IDFA, says Canada’s continued disre-gard for the provisions in its pacts with trade partners is unacceptable.

“These protectionist policies are in direct conflict with prin-ciples of free markets and trade, which trade agreements like TPP aim to promote,” Tipton says. CMN

CANADAContinued from page 1

Meanwhile, NDM is forecast to average $0.810-$0.830 in 2016, up from $0.795-$0.815 in the August forecast. In 2017, the average NDM price is forecast to rise to fall in the $0.890-$0.960 range.

Dry whey now is forecast to average $0.260-$0.280 in 2016, up from $0.255-$0.275 in last month’s report, and then climb to $0.295-$0.325 in 2017.

USDA lowered its Class III price forecast for both 2016 and 2017 as the reduction in the cheese price more than offsets the whey price increase. Class III milk in 2016 now is expected to average in the $14.75-$14.95 per hundredweight range, down from $14.80-$15.00 in the

August report. In 2017, USDA forecasts Class III milk will average in the $14.95-$15.95 range, down from its forecast of $15.00-$16.00 last month.

The 2016 Class IV price forecast is lowered to $13.65-$13.95, down from $13.75-$14.05 in last month’s report, as the lower butter price more than offsets the higher NDM price. In 2017, though, higher NDM prices more than offset the lower butter price forecast, leading USDA to increase the Class IV price forecast to $13.80-$14.90, up 20 cents from last month’s report.

The all-milk price forecast is lower at $16.10-$16.30 in 2016 but unchanged at $16.15-$17.15 for 2017.

In this month’s report USDA fore-casts 2016 milk production to total 212.2 billion pounds, up 100 million pounds from its August forecast. In 2017, milk production is projected to climb to 216.1 billion pounds, up 300 million pounds from the previous month’s report. CMN

WASDEContinued from page 1

Milk Producers, a group of family-owned dairy farmers.

“We have experienced astonishing success at Continental Dairy over the past four years, and it only makes sense that we are adding butter to our list of ingredients that we manufacture,” says Steve Cooper, president, Select Milk Producers, and general manager of dairy manufacturing operations. “We are extremely pleased to also be adding to our workforce and investing in our local community with this expansion.”

Continental Dairy currently manu-factures nonfat dry milk, condensed milk and cream, and the company exports products to 15 different countries. CMN

EXPANSIONContinued from page 1

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September 16, 2016 — CHEESE MARKET NEWS® 11

NEWS/BUSINESS

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Process Expo sells more than 75 percent of exhibit space a year ahead of eventMcLEAN, Va. — Process Expo, a trade show for the food processing industry produced by The Food Processing Sup-pliers Association (FPSA), has sold more than 165,000 square feet of exhibit space to 264 companies to date. The 2017 show will take place Sept. 19-22, 2017, in the North Hall of McCormick Place in Chicago.

The 2017 show also will feature many international exhibitors as a result of its partnership with three German Messes who organize three of the most infl uential food-focused trade fairs in the world, FPSA notes.

“We are thrilled with the response from the industry for Process Expo 2017. We opened exhibit sales six weeks ago and have already sold more than 75 percent of our show fl oor with so many leading companies in the industry al-ready committing their support for the event,” says Tom Kittle, FPSA Chairman and President of Handtmann Inc. and Handtmann Canada Ltd. “The 2017 event is going to be a must-attend event for all segments of the food processing industry.”

The Process Expo show fl oor will offer equipment, machinery and demos for buyers in all of the vertical industry

sectors, including dairy, bakery/snacks, beverage, meat/poultry/seafood, pre-pared foods, fruits/vegetables, confec-tionery/candy, co-packers and pet foods.

General sales of exhibit space are available on the website at www.mypro-cessexpo.com/exhibitors/reserve-your-booth. For more information, contact Grace A. Cular Yee, vice president, sales, at 703-663-1220 or Alaina Herrera, exhib-it sales associate, at 703-663-1212. CMN

Land O’Lakes reports increased net earningsARDEN HILLS, Minn. — Land O’Lakes Inc. recently announced second quarter fi nancial results, reporting quarterly net earnings of $134 million on sales of $3.5 billion for the period ending June 30, 2016. Second quarter results were up 67 percent compared to the same period in 2015.

Year-to-date net sales totaled $7.1 billion with net earnings of $238 mil-lion. These results were signifi cantly higher over the same period in 2015, with year-to-date earnings up 33 percent year-over-year, the co-op says.

“Despite sustained market volatility and headwinds across the segments where we operate, Land O’Lakes Inc. is reporting signifi cantly higher results year-over-year with strong performance across all of our business units,” says Chris Policinski, Land O’Lakes Inc. president and CEO. “We will continue to invest in growth, innovation and our core businesses, and with the addition of our new business unit Sustain continue to collaborate on and improve environ-mental sustainability for the benefi t of our members, customers and partners.”

Land O’Lakes says its Dairy Foods segment, including the Land O’Lakes brand, saw higher results over the same period in 2015, due in part to less volatile markets and strong volumes and overall performance in the Foodservice division.

Land O’Lakes Inc. recently an-nounced the formation of a new business unit Sustain, which will focus on helping

to ensure sustainable crop production by delivering insights, products and ser-vices, enhancing sustainability within the Dairy Foods and Feed businesses and partnering with other entities, including government, to improve ef-fi ciency and collaboration on conserva-tion and sustainability programs. CMN

“We are thrilled with the response from the industry for Process Expo 2017. The 2017 event is going to be a must-attend event for

all segments of the food processing industry.”

Tom KittleFOOD PROCESSING

SUPPLIERS ASSOCIATION

Page 12: Preference for ‘natural’ boosts annatto extract …...carotene in the milk, producing a richer cheese color,” Potter says. “When marketing it on a large scale, they wanted

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House ag committee holds hearing on expanding trade with CubaWASHINGTON — The House Agri-culture Committee this week held a hearing to examine the potential for expanded agricultural trade between the United States and Cuba. Much of the hearing focused on the Cuba Agricultural Exports Act (HR 3687), which would lift fi nancing restric-tions that have limited agricultural exports to Cuba.

Agricultural Committee Chair-man K. Michael Conaway, R-Texas, says that despite the complicated relationship with Cuba, many believe lifting the fi nancing restrictions on agricultural trade could improve the daily lives of Cubans while also help-ing American agricultural producers who are experiencing a downturn in the agricultural economy.

“If we are to be successful in lifting these restrictions, we must fi nd common ground,” Conaway said Wednesday following the hearing. “To-day’s hearing was a good step in that direction. It was also a reminder that,

in my view, repeated efforts to lift both the embargo and restrictions on travel are a distraction that is preventing us from making meaningful changes.”

The U.S. Agricultural Coalition for Cuba, whose members include the International Dairy Foods Associa-tion (IDFA), National Milk Producers Federation, U.S. Dairy Export Council and other dairy and ag organizations, submitted comments for the hear-ing explaining how easing sanctions could bring economic value to U.S. agriculture.

The letter notes that U.S. agri-cultural and food products can be exported to Cuba for humanitarian reasons under the Trade Sanctions Reform Act of 2000, but remaining U.S. restrictions on fi nancing those sales have made it diffi cult to compete with other countries in the Cuban market. U.S. restrictions require Cuban buyers of U.S. agricultural products to pay cash in advance or fi nance the transaction through third-

country banking institutions.“U.S. agriculture is at a global

disadvantage as we watch foreign competitors continue to take away our market share because of their ability to offer more favorable credit terms,” the coalition says. “As recently as 2008, our industry was selling nearly $700 million in agriculture products to Cuba annually. In 2015, our sales were under $200 million in what is nearly a $2 billion market. U.S. market share is now less than 10 percent of Cuba’s agricultural imports, despite superior quality, competitive prices of our products and logistical advan-tages.”

The coalition urged leaders of the committee to move the HR 3687 bill forward and reject any language that would reverse or hinder U.S. agricul-tural trade with Cuba. In addition to lifting fi nancial restrictions, IDFA notes that HR 3687 also would provide for market promotion and U.S. agri-business investment in Cuba. CMN

USDA revises appendices for 2016 tariff-rate import quota licensingWASHINGTON — USDA’s Foreign Agricultural Service (FAS) in the Aug. 26 Federal Register announced the re-vised appendices for Dairy Tariff-Rate Import Quota Licensing for the 2016 quota year. The revisions refl ect the cumulative annual transfers from Ap-pendix 1 to Appendix 2 for certain dairy product import licenses permanently surrendered by licensees or revoked by the licensing authority, FAS says.

FAS administers the Dairy Tariff-Rate Import Quota Licensing Regula-tion that provides for the issuance of licenses to import certain dairy articles

under tariff-rate quotas (TRQs) as set forth in the Harmonized Tariff Sched-ule (HTS) of the United States.

These dairy articles may only be entered into the United States at the low-tier tariff by or for the account of a person or fi rm to whom such licenses have been issued and only in accor-dance with the terms and conditions of the regulation.

The regulation states that when-ever a historical license (Appendix 1) is not issued to an applicant, is permanently surrendered or is revoked by the licensing authority,

the amount of such license will be transferred to Appendix 2. (For more information on the annual trans-fers, see the Aug. 29 Federal Regis-ter notice at www.federalregister.gov/articles/2016/08/26/2016-20248/adjustment-of-appendices-for-dairy-tariff-rate-import-quota-licensing-for-the-2016-tariff-rate-quota.)

For more information, contact Abdelsalam El-Farra, Dairy Import Licensing Program, Import Poli-cies and Export Reporting Division, USDA, at 202-720-9439; email abdel [email protected]. CMN

Total conventional dairy ads decrease 6 percent, AMS saysWASHINGTON — Total conventional dairy advertisements decreased 6 percent last week from the prior week, while con-ventional cheese ads increased 2 percent, says USDA’s Agricultural Marketing Ser-vice (AMS) in its latest weekly National Dairy Retail Report released Sept. 9.

AMS says national conventional variet-ies of 8-ounce natural cheese blocks last week had a weighted average advertised price of $2.10, down from $2.17 one week earlier and $2.21 one year earlier.

Natural varieties of 1-pound cheese blocks last week had a weighted average advertised price of $3.53, up from $3.37 one week earlier but down from $4.33 one year earlier, AMS says, while 2-pound cheese blocks had a weighted average advertised price of $6.01, down from $6.22 one week earlier and $6.67 one year ago.

AMS says natural varieties of 8-ounce cheese shreds last week had a weighted average advertised price of $2.18, down from $2.19 one week earlier and $2.27 one year earlier, while 1-pound cheese shreds had a weighted average advertised price of $3.51, up from $3.09 one week earlier but down from $3.64 one year earlier.

Meanwhile, national conventional butter in 1-pound packs last week had a weighted average advertised price of $3.29, down from $3.84 one week earlier but up from $2.97 one year ago. CMN

USDA seeks dairy board nomineesWASHINGTON — USDA is asking dairy producer organizations and other inter-ested parties to nominate candidates to serve on the National Dairy Promotion and Research Board. Nominations must be submitted by Sept. 28.

The Secretary of Agriculture will ap-point 12 dairy producers to serve three-year terms beginning Nov. 1, 2016, and ending Oct. 31, 2019. The appointees will replace producer board members whose terms expire Oct. 31, 2016.

USDA will accept dairy producer nominations for the following regions: Region 2 (California and Hawaii); Re-gion 3 (Arizona, Colorado, Montana, Nevada, Utah and Wyoming); Region 4 (Arkansas, Kansas, New Mexico, Okla-homa and Texas); Region 6 (Wisconsin); Region 9 (Indiana, Michigan, Ohio and West Virginia); Region 10 (Alabama, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, Puerto Rico, South Carolina, Tennessee and Virginia); Region 11 (Delaware, Maryland, New Jersey and Pennsylvania); and Region 12 (Con-necticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont). The secretary will appoint fi ve members for Region 2, and one member for each of the remaining regions.

For nominating forms and informa-tion, visit www.ams.usda.gov/dairy. CMN