Since 1876 W S l y CHEESE REPORTER Issues/2016/September 16... · 2016-09-16 · Sugar Industry-Backed Research Promoted Dietary Fat As Heart Disease Culprit: Report Vol. 141, No

Sugar Industry-Backed Research Promoted Dietary Fat As Heart Disease Culprit: Report

Vol. 141, No. 13 • Friday, September 16, 2016 • Madison, Wisconsin

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CHEESE REPORTER

Canada’s Dairy Ingredient Policy Raises Global Dairy Concerns

Continental Dairy Completes $50 Million Expansion To Add Butter And Buttermilk Powder To Product LineCoopersville, MI—Continental Dairy Facilities, LLC, a dairy pro-cessing facility located here, has recently completed a $50 million expansion project to add butter and buttermilk powder production at the facility.

The expansion project will cre-ate 10 new full-time jobs at the facility.

Continental Dairy Facilities was established in 2012 and is owned by Select Milk Producers, one of the largest dairy cooperatives in the US. Continental Dairy cur-rently manufactures nonfat dry milk, skim milk powder, con-densed skim milk and cream at its Coopersville facility and exports products to 15 different countries.

“We have experienced astonish-ing 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,” said Steve Coo-per, Select Milk Producers presi-dent and general manager of dairy manufacturing operations. “We are extremely pleased to also be add-ing to our workforce and investing in our local community with this expansion.”

Continental Dairy was recog-nized as the Michigan Ag Exporter of the Year in 2014, and received a special award for manufacturing and community revitalization by the Michigan Manufacturers Asso-ciation in 2015.

Due To Research Started In 1960s, Fat And Cholesterol Are Now Seen As CulpritsChicago—A report published online this week by JAMA Inter-nal Medicine suggests that the sugar industry sponsored research to influence the scientific debate to cast doubt on the hazards of sugar and to promote dietary fat as the culprit in heart disease.

Stanton A. Glantz, Ph.D., of the University of California, San Francisco, and two co-authors examined internal documents from the Sugar Research Founda-tion (SRF), which later evolved into the Sugar Association, his-torical reports, and other mate-rial to create a chronological case study.

In the 1950s, disproportion-ately high rates of coronary heart disease (CHD) mortality in American men led to studies of the role of dietary factors, includ-ing cholesterol, phytosterols, excessive calories, amono acids, fats, carbohydrates, vitamins, and minerals in influencing CHD risk, the report explained.

By the 1960s, two prominent physiologists were champion-ing divergent causal hypotheses of CHD: John Yudkin identified added sugars as the primary agent, while Ancel Keys identified total fat, saturated fat, and dietary cho-lesterol.

However, by the 1980s, few sci-entists believed that added sugars played a significant role in CHD, and the first Dietary Guidelines

• See Sugar, Fat & CHD, on p. 8275

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ExportUS Cheese ExportsJanuary – July 2011- 2016; millions of lbs.

Groups From US, New Zealand, Mexico, Australia Say Policy Favors Use Of Canadian Ingredients Over ImportsWashington—Dairy organiza-tions from the US, New Zealand, Australia and Mexico this week expressed their “deep concern” with an agreement in principle on dairy ingredient pricing that was recently concluded between Cana-da’s dairy producers and processors.

The dairy organizations issu-ing a joint letter to their respec-tive trade and agriculture officials included the International Dairy Foods Association (IDFA), National Milk Producers Fed-eration (NMPF) and US Dairy Export Council (USDEC) in the US; the Dairy Companies Associa-tion of New Zealand (DCANZ); the Australian Dairy Industry Council (ADIC); the European Dairy Association (EDA), Euro-pean Whey Products Association (EWPA), and the European Asso-ciation of Dairy Trade (Eucolait) in the European Union (EU); and

the Mexico National Chamber of Industrial Milk.

By adopting the agreement on dairy ingredient pricing, Canada is contravening both its World Trade Organization (WTO) and North American Free Trade Agreement (NAFTA) trade obligations and “undermining the intent” of the pending Trans-Pacific Partner-ship (TPP) and Comprehensive Economic and Trade Agreement (CETA), which is between the EU and Canada, the dairy groups said.

The Canadian producer-pro-cessor agreement “both favors the substitution of Canadian domes-tic origin dairy ingredients for dairy ingredients imported from our countries, and subsidizes the export of Canadian dairy products to unfairly compete with our prod-ucts in third country markets,” the dairy organizations stated.

They asked the authorities in the US, EU, New Zealand, Aus-tralia and Mexico to initiate a WTO dispute settlement proceed-ing to challenge the Canadian agreement, once its details are announced, “given its intended erosion of trading conditions in

place at the time Canada negoti-ated prior trade commitments.”

Numerous Canadian programs have imposed trade limitations over the past few years. The dairy organizations cited three examples of that “deeply problematic policy approach” by Canada: Canada’s compositional stan-

dards for cheese, implemented in 2008, which have intentionally limited imports of ingredients including casein, powdered milk protein concentrate (MPC), milk protein isolate (MPI) and whey protein concentrate (WPC) as inputs into cheesemaking. Targeting imported products,

such as cheese used on foodservice pizza and chocolate milk, by allow-ing access to lower-priced Cana-dian milk for use in processing into such products. Ostensibly temporary special

classes of milk pricing, such as class 6 in Ontario, which offers Cana-dian processors nonfat milk sol-ids, at subsidized prices well below the domestic cost of production, for ingredient applications such as skim milk powder, MPC and

• See Canada’s Pricing, p. 4

USDA Increases Milk Production Forecasts For 2016, 2017; Price Forecasts MixedWashington—The US Depart-ment of Agriculture (USDA), in its monthly supply-demand esti-mates released Monday, raised its milk production forecasts for both 2016 and 2017, while its price forecasts were mixed.

The milk production forecast for 2016 is raised from last month as the cow inventory appears to have steadied in the face of expected improvements in returns. The milk production forecast for 2017 is raised to reflect slightly more rapid growth in milk per cow.

USDA now expects 2016 milk production to total 212.2 billion pounds, up 100 million pounds from last month’s forecast and 3.6 billion pounds higher than 2015’s • See Forecasts Mixed, p. 16

CHEESE REPORTERPage 2 September 16, 2016

Cheese Reporter Publishing Co. Inc. © 2016

2810 Crossroads Drive, Suite 3000Madison, WI 53718-7972

(608) 246-8430 • Fax (608) 246-8431http://www.cheesereporter.com

DICK GROVES

Publisher/Editore-mail: [email protected]

608-316-3791MOIRA CROWLEY

Specialty Cheese Editore-mail: [email protected]

608-316-3793

KEVIN THOME

Advertising & Marketing Directore-mail: [email protected]

608-316-3792

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Classifieds/Circulation Managere-mail: [email protected]

608-316-3790

REGULAR CONTRIBUTORS:Bob Cropp, Neville McNaughton,

Dan Strongin, John UmhoeferYou can e-mail our contributors at: [email protected]

The Cheese Reporter is the official publication of the following associations:

California Cheese & Butter AssociationLisa Waters,

1011 Pebble Beach Dr, Clayton, CA 94517

Central Wisconsin Cheesemakers’ and Buttermakers’ Association

Janice Norwood [email protected]

Cheese Importers Association of America 204 E St. NE, Washington, DC 20002

Eastern Wisconsin Cheesemakers’ and Buttermakers’ Association

Barb Henning, Henning’s Cheese21812 Ucker Road, Kiel, WI 53042

International Dairy-Deli-Bakery Association636 Science Drive, Madison, WI 53711

Missouri Butter & Cheese InstituteTerry S. Long, 19107 Factory Creek Road,

Jamestown, MO 65046

Nebraska Cheese AssociationEd Price, Fremont, NE 68025

New York State Cheese Manufacturer’s Assn Kathyrn Boor, 11 Stocking Hall,

Cornell University, Ithaca, NY 14853

North Central Cheese Industries AssnLloyd Metzger, SDSU, Box 2104,

Brookings, SD 57007

North Dakota Cheese Makers’ AssnChuck Knetter, Medina, ND 58467

Ohio Swiss Cheese AssociationDarlene Miller, P.O. Box 445,

Sugar Creek, OH 44681

South Dakota State Dairy AssociationHoward Bonnemann, SDSU, Box 2104,

Brookings, SD 57007

Southwestern Wisconsin Cheese Makers’ Association

Myron Olson, Chalet Cheese Coop, N4858 Cty Hwy N, Monroe, WI 53566

Wisconsin Association for Food ProtectionBob Wills

PO Box 620705, Middleton WI 53562

Wisconsin Cheese Makers’ AssociationJohn Umhoefer, 8030 Excelsior Drive,

Suite 305, Madison, WI 53717

Wisconsin Dairy Products AssociationBrad Legreid, 8383 Greenway Blvd.,

Middleton, WI 53562

CHEESE REPORTER (Publication Number: ISSN 0009-2142). Published weekly by Cheese Reporter Publishing Co. Inc., 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-7972; Phone: (608) 246-8430; Fax: (608) 246-8431. Subscriptions: $140.00 per year in USA; Canada and Mexico: $195.00 per year; other foreign subscribers, please write for rates. Advertising and Editorial material are copyrighted material. Any use without publisher’s consent is prohibited. Cheese Reporter does not endorse the products of any advertiser or any editorial material. POSTMASTER: If undeliverable, Form 35579 requested. Periodicals postage paid at Madison, WI. Address all correspondence to: Cheese Reporter, 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-7972

Frankly, we find it a bit shocking, and somewhat amusing, that NASS would actually offer any sort of com-parison between current cheese stocks and the level of cheese stocks 99 years ago.

Past Issues Read this week’s issue or past issues of Cheese Reporter on your mobile phone or tablet by scanning this QR code.

Misleading Statistics Distort Dairy Market Realities

D I C K G R O V E S

Publisher / EditorCheese Reportere: [email protected]: @cheesereporter

EDITORIAL COMMENT

Back on August 22nd, USDA’s National Ag Statistics Service, in its monthly “Cold Storage” report, noted that total natural cheese stocks in refrigerated warehouses on July 31, 2016, were a record high for the month of July (at 1.276 billion pounds), “since the data was first recorded in 1917.”

The agency made the same ref-erence to 1917 in the “Cold Stor-age” reports it released in July, June and May.

Frankly, we find it a bit shock-ing, and somewhat amusing, that NASS would actually offer any sort of comparison between cur-rent cheese stocks and the level of cheese stocks 99 years ago.

There are at least two problems with using the 1917 comparison for cheese stocks. First, US cheese production back then didn’t even amount to half a billion pounds, let alone the almost 1.3 billion pounds currently being stored.

That’s our guess, anyway, since the NASS statistical database for cheese production begins in 1919, when US output was around 479 million pounds. And it wasn’t until 1925 that US cheese produc-tion even cracked the 500-million-pound barrier.

Further, it wasn’t until 1942 that cheese production first topped 1 billion pounds, and it wasn’t until 1947 that total annual cheese out-put, at 1.283 billion pounds, actu-ally topped the amount of cheese in refrigerated warehouses at the end of July, 2016.

It would have been pretty much impossible for there to have been all that much cheese being stored back in 1917, simply because there wasn’t all that much cheese being produced (or consumed).

For what it’s worth, cheese stocks at the end of August 1917 (end-of-July stocks aren’t reported on the NASS website) totaled about 95 million pounds, or roughly 20 per-cent of annual cheese production.

At 1.276 billion pounds, the quantity of cheese in refrigerated warehouses at the end of July 2016 amounted to around 11 percent

of annual cheese production. In that historical comparison, cheese stocks seem a bit low right now.

Not only has cheese production increased steadily if not spectac-ularly over the past century, the types of cheese being produced in the US have changed tremen-dously. For example, NASS statis-tics for US Parmesan production date back to 1961; that year, US Parmesan production totaled all of 19.4 million pounds.

Last year, US Parmesan pro-duction was a record 339 million pounds, all of which has to be stored for anywhere from several months to almost two years before being sold.

Indeed, we can’t help but notice that US Parm production grew by more than 100 million pounds just since 2010 (when output was just under 234 million pounds). Mean-while, stocks of “other” natural cheese (other than American and Swiss) rose from 402.9 million pounds as of July 31, 2010 to 480.7 million pounds as of July 31, 2016.

Seems like a lot of the increase in total cheese stocks over the last six years can be explained by the increase in Parmesan production.

Another way of looking at the amount of cheese being held in warehouses is described in an arti-cle in the April 2011 Northeast federal order market administra-tor’s bulletin.

The article noted that total cheese stocks exceeded 1 billion pounds in March 2010 and had remained above that level through March 2011. Yet the NASS (now AMS) block Cheddar cheese price still spent five weeks over $1.88 per pound from late February through March 2011 and remained over $1.60 per pound through April 2011.

“Though current total cheese stocks over a billion pounds sounds like a very big number historically, it has to be viewed in context with current historically strong cheese production and commercial dis-appearance numbers,” the article pointed out.

When cheese stocks were last above a billion pounds, in 1983-84, government stocks of Ameri-can cheese accounted for roughly 60 percent of total cheese stocks. There was indeed a “glut of cheese” in storage, relative to the size of the cheese market at that time. Stocks were 314 percent higher than total monthly production.

From 1988 on, total cheese stocks averaged 96 percent of total monthly cheese production, rang-ing mostly between 80 and 116 percent, the article continued. Stocks averaged 104 percent since 2000.

“These data imply that stocks have grown mostly in propor-tion with production,” the article explained. In relative terms, 1984’s billion pounds of cheese in cold storage is not the same as today’s billion pounds.

US cheese production back in 1984 totaled around 4.7 billion pounds, or an average of about 392 pounds per month. By 2011, when the Northeast market administra-tor’s bulletin ran its article about cheese stocks, cheese production had risen to around 10.6 billion pounds, or an average of about 883 million per month.

And, as noted, stocks were over a billion pounds. This year, cheese production is on pace to top 12 bil-lion pounds for the first time ever, which works out to an average of around a billion pounds of cheese every month.

In that context, the current US cheese inventory of almost 1.3 bil-lion pounds doesn’t really seem all that out of line. If anything, what’s out of line is any sort of reference to 1917, or any historical reference that doesn’t reflect the growth and changes in cheese production.

Rising inventories, looked at in the manner described in the Northeast market administrator’s article more than five years ago, indicate a growing market. If any-thing, rather than getting bent out of shape when inventories top 1.2 billion pounds, folks should worry when they drop below that level.

CHEESE REPORTERSeptember 16, 2016 Page 3

For more information, circle #1 on the Reader Response Card on p. 14

USDA Seeks Up To 98 Million Pounds Of Mozzarella Cheese For Delivery In 2017Agency Also Seeking Up To 60 Million Pounds Of Process Cheese For Delivery In 2017Washington—USDA’s Agricul-tural Marketing Service (AMS) last Friday issued an invitation seeking to purchase a maximum of 98,112,875 pounds of Mozzarella cheese for delivery during 2017.

Offers under Bid Invitation 200004286 are due by 9:00 a.m. Central time on Friday, September 23, 2016.

Estimated monthly maximums and total quantities being sought by AMS by type of Mozzarella are as follows (the quantity awarded may be less than the quantity advertised due to program changes, AMS noted): Frozen LMPS 30-pound box

shreds: a total of 9,112,320 pounds, with a low of 80,640 pounds in both May and June and a high of 1,330,560 pounds in August. Frozen Lite 30-pound box

shreds: a total of 4,152,960 pounds, with a low of 80,640 pounds in both May and June and a high of 1,008,000 pounds in August. Frozen LMPS 8/6-pound

loaves: a total of 7,902,720 pounds, with a low of 80,640 pounds in May and a high of 1,209,600 pounds in August. Chilled LMPS Processor

Pack (Totes): a total of 76,944,875 pounds, with a low of 2,714,250 pounds in May and a high of 8,677,375 pounds in August.

Offers should be submitted as a differential price per pound to the CME 40-pound Cheddar block cash market price for Mozzarella cheese.

The contract price for a deliv-ery month will be the total of the accepted differential price, plus the previous week average of the CME cash 40-pound Cheddar block cheese trading.

USDA will evaluate bids in response to this solicitation with-out discussions and will award a contract to the bidders whose bids, conforming to the solicitation, will be most advantageous to the gov-ernment considering only price and the price-related factors speci-fied in the solicitation.

USDA may reject any or all bids; accept other than the low-est bid; and waive informalities or minor irregulatories in the bids received.

For more information on the AMS Mozzarella solicitation, con-tact Mary Mahoney, at (816) 926-2501; e-mail [email protected].

Meanwhile, on Thursday, AMS released a bid solicitation seeking a maximum of 60,152,400 pounds of process cheese for delivery dur-

ing 2017. Offers under Bid Invi-tation number 2000004310 are due by 9:00 a.m. Central time on Thursday, September 29, 2016.

Estimated monthly maximums and total quantities being sought by AMS by type of process cheese product are a follows (the quan-tity awarded may be less than the quantity advertised due to program changes, AMS pointed out): Cheese Process 6/5-pound

loaves: a total of 1,900,800 pounds, with a low of 39,600 pounds in February, April, May and June and a high of 356,400 pounds in Janu-ary. Cheese Process sliced-loaves

6/5-pound generic: a total of 12,196,800 pounds, with a low of 39,600 pounds in June and a high of 2,019,600 pounds in August. Cheese Blend American

skim 12/2-pound loaves: a total of

25,344,000 pounds, with a low of 1,702,800 pounds in August and a high of 3,326,400 pounds in Sep-tember. Cheese Blend American skim

6/5-pound generic sliced loaves: a total of 15,602,400 pounds, with a low of 118,800 pounds in June and a high of 3,009,600 pounds in September. Kosher Cheese process white

6/5-pound sliced loaves: a total of 633,600 pounds, with lows of 39,600 pounds in eight months and highs of 79,200 pounds in the other four months. Cheese Blend American

Skim yellow 6/5-pound regular sliced loaves: a total of 1,227,600 pounds, with lows of 79,200 pounds in five months and highs of 118,800 pounds in the other seven months. Cheese Process regular 6/5-

pound loaves: a total of 3,247,200 pounds, with a low of 118,800 pounds in February and a high of 475,200 pounds in October.

Offers should be submitted as a differential price per pound to the CME 500-pound barrel cheese cash market price for the process cheese.

The contract price for a deliv-ery month will be the total of the accepted differential price, plus the previous month average of the Chicago Mercantile Exchange cash market barrel price.

For more information on the process cheese solicitation, contact Trevor Wilson, AMS, at (816) 926-1564; e-mail [email protected].

Finally, AMS on Wednesday announced the awarding of a con-tract for a total of 316,800 pounds of cheese process regular 6/5-pound loaves to Associated Milk Produc-ers, Inc. (AMPI).

The delivery period is Novem-ber 16 through December 31, 2016.

Contract prices ranged from $1.9400 to $1.9950 per pound. The total contract value is $622,512.


from our archives

50 YEARS AGOSept. 16, 1966: Washington—The House Committee voted to shelve the “truth in packaging” bill this week. The bill would require food manufacturers to clearly label packages to show ingredients and quantities, and would prod the industry to set its own standards for packaging and labeling with the threat of mandatory federal standards if they failed to do so.

Syracuse, NY—The Dairymen’s League Cooperative Association, Inc. won two New York State Expo gold medals for Aged Cheddar and Cottage Cheese here this week. The winning Cheddar was made by a cheese plant in Adams, NY.

25 YEARS AGOSept. 13, 1991: Fond du Lac, WI—New and improved prod-ucts, lower energy consump-tion and transportation costs, and extended operation with reduced maintenance are among the benefits of freeze concentra-tion technology in the dairy industry. That was the progno-sis of several speakers at a dem-onstration here this week of a freeze concentration research project now underway at the Galloway-West Co. plant here.

Madison—A UW-Madison study concludes that all seg-ments of the dairy industry must be involved to lick the prob-lem of antibiotic residues in milk, said dairy science profes-sor Allan Bringe here this week at the 28th Marschall Italian Cheese Seminar.

10 YEARS AGOSept. 15, 2006: Madison—Organic dairy farmers in Wis-consin are far more satisfied with their income and quality of life than other types of farmers, and also more optimistic about the future viability of their operations, according to a report released this week by Program on Agricultural Technology Studies at the UW-Madison.

Washington—Milk ingredients were the number two cause of food recall actions between 1999 and 2004 due to undeclared major food allergens, trailing only egg ingredients, according to a new FDA report. Bakery products and ice cream products had the larg-est number of recalls during that period. From 1999 to 2004, there were 462 food recalls from unde-clared food allergens.

For more information, circle # 2 on the Reader Response Card on p.14

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Canada’s Pricing(Continued from p. 1)

ultrafiltered milk. Broadly speak-ing, the agreement reached in July by Canada’s dairy producers and processors adopts this concept and nationalizes it.

That agreement will, among other things, establish a new ingre-dient milk class to be priced at the lowest of the US, EU and Oceania price for solids-not-fat for seven years, the US and other dairy groups explained. This below-cost pricing will apply to the manufac-ture of skim milk powder, liquid skim milk, liquid MPC (any liquid form of MPC or milk protein iso-late), whole milk powder, and sim-ilar products approved jointly by the producers and processors, dry MPC, casein, sodium caseinate, calcium caseinate, blended dairy powders and infant formula at a maximum of 4 percent butterfat.

“This newly introduced provi-sion of below market price milk for the production of the listed dairy ingredients provides both an incen-tive to substitute those ingredients for their imported counterparts and a subsidy on the production of the end products containing those ingredients,” the dairy orga-nizations stated. “Both of these elements violate Canada’s obliga-tions under a number of WTO and NAFTA agreement provisions.

“Even more concerning,” the groups continued, is the propsect that new measures to enable the export of Canada’s structural sur-plus of skim milk powder at below the cost of production reflect an attempt to circumvent the WTO Nairobi Ministerial Decision on Export Competition undertak-ing to terminate all export subsi-

dies by the end of 2020, including Canada’s standstill agreement in the decision to hold export subsidy quantities to the levels achieved in the 2003-05 base period.

The Canadian agreement “will undermine the value of our respective TRQ (tariff-rate quota) access” negotiated under the WTO, NAFTA, TPP and CETA agreements and “otherwise impede our dairy trade,” the groups said. Further, their initial analysis of Canada’s trade obligations against the measures in place and the agreement “lead us to conclude that there is ample justification for undertaking a legal challenge.”

The dairy groups said they would welcome the opportunity to work with their governments to pursue the most effective methods possible to dissuade Canada from its course, including the utilization of dispute settlement under exist-ing trade agreements.

“Canada’s continued disregard for the provisions in its pacts with trade partners is unacceptable,” said Connie Tipton, IDFA’s presi-dent and CEO. “These protection-ist policies are in direct conflict with the principles of free markets and fair trade, which trade agree-ments like TPP aim to promote.”

“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,” said Jim Mulhern, NMPF’s president and CEO. “Enough is enough; Canada needs to stop shirking its dairy commitments and hold up its end of already negotiated agreements.”

“For years US exporters have borne the brunt of a continu-ing procession of new Canadian policy tools intended to curtail

dairy imports,” said Tom Suber, USDEC’s president. “TPP has included new features to move toward more open trade by expand-ing market access compared to the status quo; but Canada’s been doing its best to erode longstand-ing existing access as much as pos-sible before this agreement is even put in place.”

Questions For WTO Ag PanelIn a related development, a num-ber of questions on Canada’s new milk ingredient class were submit-ted to the WTO Committee on Agriculture ahead of that commit-tee’s meeting this week.

The US, New Zealand and Aus-tralia asked several questions with regard to the expanded Class 4(m) that was announced by the Cana-dian Milk Supply Management Committee, including: The US understands that the

intent of the changes to Class 4(m) is to provide liquid MPC (up to 85 percent protein) and liquid skim milk to processors at world prices. How exactly are world prices deter-mined? For example, world prices of which products are considered? Are US prices used? Does a processor need to use

a certain level or percentage of domestic liquid MPC and liquid skim milk to qualify for the Class 4(m) adjustment? Could a processor use domes-

tic liquid MPC and liquid skim milk and imported fluid milk and ingredients and still qualify for the Class 4(m) adjustment for the domstic liquid MPC and liquid skim milk used? Could a processor who uses

domestic liquid MPC and liq-uid skim milk, and who also uses imported ultrafiltered milk to meet the minimum percentage of casein content derived from fluid milk in the compositional cheese require-ments, qualify for the Class 4(m) adjustment for the domestic liquid MPC and liquid skim milk used?

Also, the US, New Zealand and Australia asked whether processors who receive milk under Class 6 or Class 4(m), and whose production process results in excess skim milk solids, could export that excess. If so, they wanted to know if there have been such exports; if proces-sors need approval from, or need to account to, the milk boards or the Canadian Dairy Commission to export; whether the milk boards, the CDC, or the processors actu-ally ship the exports; and whether such export sales are being made under a particular class in the milk classification system.

In response to questions from Australia, Canada stated: “As milk proteins are used in many differ-ent applications, including food products, nutraceuticals, and non-food usages, Canada considers the amended milk class 4(m) will not have any significant impact on the overall imports of milk proteins.”


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International Flavors, Fragrances To Acquire David Michael & Co.New York—International Fla-vors & Fragrances (IFF) this week announced that it has entered into an agreement to acquire David Michael & Company, Incorpo-rated.

Founded in 1896 and based in Philadelphia, PA, David Michael is a privately held flavors company that is well-known for its vanilla expertise, strength in the dairy and beverage categories, and relation-ships with middle-market custom-ers.

“IFF and David Michael share a strong commitment to innova-tion, rich histories, and a passion for our customers, making them a

great addition to our organization,” said Andreas Fibig, IFF’s chairman and CEO.

“For three generations, David Michael has been a vital player in the industry, building an out-standing portfolio of capabilities and customer relationships,” said Matthias Haeni, group president, flavors, IFF. “Merging and lever-aging the strengths of both IFF-Ottens Flavors, acquired in 2015, and David Michael, we look to further reinforce our differentiated service model for the US for mid-dle-market customers, focused on innovation, agility, and enhanced collaboration.”

Until the transaction closes, which is expected to occur in the fourth quarter of 2016, David Michael and IFF will operate as separate companies.

Delmar E. Telschow, 86, Marsh-field, WI, formerly of the town of Frankfort, died on Friday, Septem-ber 9, 2016, in Marshfield. After serving in the US Army during the Korean War from 1951 until 1953, Telschow began employ-ment with Frankfort Cheese Fac-tory, and later became owner, along with his wife, Audrey, until their retirement. During his career, Telschow served on the board of directors and also as president of the Wisconsin Cheese Makers Association.

TIFFANY ENGLAR has joined the Southwest Idaho Manufac-

turers Alliance (SWIMA) as membership director. In her new role, Englar will be responsible for overseeing membership recruit-ment and retention, event plan-ning, benefit enhancement and daily office operations. She comes to SWIMA with experience in manufacturing, human resources, business start-up and entrepre-neurship.

BENJAMIN MONDICS has been appointed president and CEO of ERIKS North America. Mondics most recently served as president of the friction controls group at SKF subsidiary Kaydon Corp. from 2013 to 2016, where he oversaw seven business units and 14 manufacturing facilities in six countries.

DEATHS

PERSONNEL

Pennsylvania Milk Marketing Board To Raise Over-Order Premium To $1.75 Through Jan.Premium Will Then Fall Back To $1.60 Per Hundred Through MarchWashington—The Pennsylvania Milk Marketing Board (PMMB) on Wednesday announced that the state’s Class I over-order premium will increase to $1.75 per hundred-weight, effective from October 1, 2016, through January 31, 2017.

The premium, which applies to all Class I milk produced, pro-cessed, and sold in Pennsylvania, will then fall back to the cur-rent level of $1.60 per hundred, through March 31, 2017.

The PMMB made its decision based on a hearing it held earlier this month to receive testimony and evidence concerning the level and duration of the over-order pre-mium.

At that hearing, Dean Ellin-wood testified on behalf of the Pennsylvania Association of Dairy Cooperatives (PADC), whose members include Dairy Farmers of America, Dairy Marketing Ser-vices, Lanco Dairy Farms Co-op, Land O’Lakes, and Maryland and Virginia Milk Producers’ Coopera-tive Association.

Ellinwood presented evidence supporting a PADC request to set the over-order premium at $1.60 per hundred. He further testified, though, that as PADC monitored harvest conditions and the impact of drought conditions on farmers’ harvests, it might request an expe-dited hearing later in the year.

John Rutherford, testifying on behalf of PADC, voiced support of PADC’s request to set the over-order premium at $1.60 per hun-dred for a six-month period.

Testifying on behalf of Pennsyl-vania Farm Bureau, Glenn Stoltzfus recommended that the over-order premium be set at $1.90 per hun-dred for six months. He testified

that the tight margins he’s expe-rienced this year had been tough for his farm and that he and other farmers are facing extremely dif-ficult conditions.

Matthew Espenshade, testify-ing on behalf of the Pennsylva-nia State Grange, requested that the over-order premium be set at $1.90 per hundred. Arden Tewks-bury, testifying on behalf of the Progressive Agriculture Organiza-tion, asked that the board set the over-order premium at $1.60 per hundred, but also testified that he would not object to the board set-ting the premium slightly higher.

Earl Fink, testifying on behalf of the Pennsylvania Association of Milk Dealers, testified in support of setting the over-order premium at $1.60 per hundred. He noted that despite lower milk prices over the last several months, milk sup-plies in the region were sufficient to supply the Class I market.

Ellinwood testified on surre-buttal that PADC now supported setting the over-order premium at $1.90 per hundred.

The PMMB decided that the over-order premium should be set at $1.75 per hundred effective October 1, 2016, through Janu-ary 31, 2017, and then decline to $1.60 per hundred for the next two months.

The PMMB said it believes establishing this premium struc-ture strikes a balance among the concerns expressed by various witnesses regarding drought con-ditions and feed costs, the finan-cial conditions on dairy farms, expected increases in milk prices, the effect on the Class I process-ing segment of the industry, and the board’s ability to provide the highest return to Pennsylvania producers without endangering the market for Pennsylvania-produced milk.


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Cornell Team Wins IMPA New Dairy Product Award With Minty ‘Yojito’

The Cornell University food science student team consisting of (from left to right) Linran Wang, Belen Vila, Michelle Duong, and Jiyu Zhu won the Iannual daho Milk Processors Asso-ciation (IMPA) new product development competition and a grand prize award of $10,000 for their drinkable yogurt formulation called Yojito.

Sun Valley, ID— A team of food science students from Cornell University won the 2016 Idaho Milk Processors Association (IMPA) New Product Develop-ment Contest here last month with its Yojito drinkable yogurt.

Cornell’s winning team received the $10,000 grand prize for the entry, which is high in protein and probiotics with a unique fun factor – mint-flavored popping boba.

These small, popable spheres can be made from a variety of fruit juices and flavors, remain sturdy until you decide to pop them in your mouth like a pocket of air on a sheet of bubble wrap.

The popping boba are formed via a molecular gastronomy tech-nique called spherification that’s more common to upscale res-taurants than grocery aisles and transforms fruit-juice concentrate into caviar-like pearls.

Utah State University’s team earned first prize with its PRO2GO high-protein frozen dessert.

Formulated with 63 percent dairy ingredients, PRO2GO has 11 grams of protein, 110 calories per 65-gram serving, 13 grams of carbs and one gram of fat.

A collaborative effort by the University of Idaho and Wash-ington State University took sec-ond prize with Custard Delights,

a quick refrigerated crème brûlée custard that’s a convenient, healthier alternative to a tradi-tional dessert.

Comprised of 75 percent dairy – a third of which is Mascarpone – the all-natural dessert is lower in fat and calories than traditional custard, ice cream, and cheesecake.

Containing just six ingredientsand nestled within a foil wrapper, the dessert can be eaten straight from the refrigerator or broiled for a few minutes to caramelize its light, sugary topping.

Taking third, Brigham Young University’s team developed a new style of gnocchi, Gnocchi di Latte, which incorporates skim milk and milk protein isolate.

As a result, the dairy-based gnocchi has more protein, vita-mins, and minerals than tradi-tional gnocchi made with potato flour, including 31 grams of pro-tein per serving.

Supported by the United Dairy-men of Idaho, the annual contest challenges universities to create the most promising new food product containing dairy ingredi-ents.

“The growing innovation these students bring to bear each year is incredible, and it’s very excit-ing for our industry,” new prod-uct competition chair Alan Reed said.

DEATHSDELMAR E. TELSCHOW, 86, Marshfield, WI, formerly of the town of Frankfort, died on, Sep-tember 9 in Marshfield. After serving in the US Army during the Korean War from 1951 until 1953, Telschow began employ-ment with Frankfort Cheese Fac-tory, and later became owner, along with his wife, Audrey, until their retirement. But continued to help his son, Dennis, operate the plant until Dennis passed in 2012. During his career, Telschow served on the board of directors and also

as president of the Wisconsin Cheese Makers Association.

TIFFANY ENGLAR has joined the Southwest Idaho Manufac-turers Alliance as membership director. In her new role, Englar will be responsible for oversee-ing membership recruitment and retention, event planning, ben-efit enhancement and daily office operations. She comes to SWIMA with experience in manufactur-ing, human resources, business start-up and entrepreneurship.

PERSONNEL

National Dairy Board Won’t Change Current Regional Distribution Of US Board Members; Board Nominees SoughtWashington—USDA’s Agricul-tural Marketing Service (AMS) this week gave notice that no changes will be made to the current distribution of domestic National Dairy Promotion and Research Board members in 12 regions.

The Dairy Research and Pro-motion Order provides that the Dairy Board will review the geo-graphic distribution of milk pro-duction throughout the US and, if warranted, recommend to the US secretary of agriculture a reap-portionment of the regions and/or modification of the number of domestic members from the regions in order to better reflect the geographic distribution of milk production in the US.

The Dairy Order is administered by a 37-member Dairy Board, 36 members representing 12 geo-graphic regions within the US and one representing dairy importers.

The number of domestic Dairy Board members was last modified in 2011, based on 2010 US milk production.

Those changes included modify-ing Dairy Board members in eight regions, merging Region 8 and Region 10, merging Region 12 and Region 13, and apportioning Idaho as a separate region with two Dairy Board members.

Based on a review of the 2014 geographic distribution of US milk production, the Dairy Board has concluded that the number of Dairy Board members and regions represented should be maintained as follows:

Region 1 (Washington, Ore-gon, Alaska): Two board seats.

Region 2 (California, Hawaii): Seven board seats.

Region 3 (AZ, CO, MT, NV, UT, WY): Two board seats.

Region 4 (TX NM, KS, OK, AR): Four board seats.

Region 5 (MN, SD, ND): Two board seats.

Region 6 (WI): Five board seats.

Region 7 (IA, IL, MO, NE: Two board seats.

Region 8 (ID): Two board seats.

Region 9 (MI, OH, IN, WV): Three board seats.

Region 10 (AL, DC, FL, GA, KY, LA, MS, NC, PR, SC, TN, VA): Two board seats.

Region 11 (PA, NJ, MD, DE): Two board seats.

Region 12 (New York, VT, CT, ME, MA, NH, RI): Three board seats.

Meanwhile, USDA is asking dairy producer organizations and other interested parties to nomi-nate candidates to serve on the National Dairy Promotion Board for three-year terms beginning November 1, 2016, and ending October 31, 2019. Nominations must be submitted by Wednesday, September 28, 2016.

USDA will accept dairy pro-ducer nominations from Region 2, Region 3, Region 4, Region 6, Region 9, Region 10, Region 11 and Region 12.

The secretary of agriculture will appoint five members for Region 2 and one member for each of the remaining regions.

For more information, visit www.ams.usda.gov/dairy, or contact Jill Hoover, AMS, at (202) 720-1069; e-mail [email protected].


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House Hearing Focuses On Potential Benefits Of Expanded US Agriculture Trade With CubaWashington—The potential for expanded agricultural trade between the US and Cuba was the focus of a House Agriculture Com-mittee hearing here Wednesday.

A US embargo on trade with Cuba has been in place in various forms for almost 60 years, noted US Rep. K. Michael Conaway (R-TX), committee chairman.

Conaway noted that US Rep. Rick Crawford (R-AR) recently introduced the Cuba Agricultural Exports Act, which lifts financing restrictions under the Trade Sanc-tions Reform and Export Enhance-ment Act (TSRA) while providing for both market promotion and US agribusiness investment under strict safeguards.

While he is “very hopeful that we can find a path forward on expanding agricultural trade with Cuba,” Conaway said he remains “firmly opposed” to lifting the embargo or restrictions on travel.

US Rep. Collin Peterson (D-MN), the committee’s top Democrat, would like to see the trade embargo lifted but is “doubt-ful that it’s politically possible” to do at this time.

Peterson cautioned that, with the exception of rice and possibly wheat, the potential benefits are limited, least in the short term. Cuba is a small country with most people having very limited income. But he feels that, in the long term, trade with Cuba “will be a benfit to US agriculture and the Cuban people.”

Cuba’s food imports totaled $1.9 billion in 2014, and the coun-try has the potential to become a “major market” for US agricul-tural exports and to develop into a market that is “quite diverse,” with bulk staple products being important in the near term, said Dr. Luis A. Ribera, associate pro-fessor of agricultural economics at Texas A&M University.

But as Cuba grows and the tastes and preferences of the aver-age Cuban become more sophis-ticated, US exports will be well positioned to capture a grow-ing share of the high-value food market, Ribera continued. The US agriculture export potential to Cuba could exceed the record $709 million set in 2008.

With a more open economy, less regulation by both govern-ments, strong tourism and remit-tances, US food and agricultural exports to Cuba have the poten-tial to exceed $1.2 billion annu-ally within five years, Ribera said. While much of this additional export volume may be consumed by international visitors, a growing share will also make its way into the Cuban populace.

Last year, US agriculture exports to Cuba were valued at $149 mil-

lion, and were concentrated in poultry, the soybean complex and corn, Ribera said. Dairy products are among the products that have “strong potential” in the mar-ket, and frozen desserts also have potential.

There are several challenges that limit the performance of US exports to Cuba, Ribera noted. Consumer incomes, infrastructure/logistics, and policy and regulation are among the key constraints.

Competition for the Cuban food market “is keen,” Ribera pointed out. Many US competitors in the Cuban market offer some form of credit terms to ALIMORT (through which food and agricul-tural imports are required to enter

Cuba) for food purchases. US firms are precluded from doing so and also face an added constraint of being required to offer only cash-in-advance sales, or cash against documents.

US exporters cannot use let-ters of credit to facilitate sales and manage risk, raising the cost of US products and making them less competitive relative to Spain, Canada, Brazil, China and Viet-nam, Ribera said. Reducing the cost and time necessary to process payment for US exports to Cuba “would have positive economic impacts in terms of increased exports and economic activity.”

Karen Lowe, senior vice presi-dent and division manager of agri-culture export finance for CoBank, discussed the impact that Craw-ford’s legislation, the Cuba Agri-

cultural Exports Act, would have on removing barriers to exporting agricultural commodities to Cuba. CoBank is a leading global trade finance provider for US agriculture exports, with approximately $4.5 billion in export loans outstand-ing.

Crawford’s bill would repeal restrictions on export financing for ag shipments to Cuba, which “would help expand a market just 90 miles from Florida,” Lowe said. The bill would also give producers and processors (CoBank’s custom-ers) access to the USDA promo-tion programs for ag exports, such as the Market Access Program and the Foreign Market Development Program.

This legislation “will not elimi-nate all the challenges in trading with Cuba,” Lowe continued.


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Sugar, Fat & CHD(Continued from p. 1)

for Americans, published in 1980, focused on reducing total fat, satu-rated fat, and dietary cholesterol for CHD prevention, the report noted.

Although the contribution of dietary sugars to CHD is still debated, what is clear, the report continued, is that the sugar indus-try, led by the Sugar Association, “steadfastly denies” that there is a relationship between added sugar consumption and cardiovascular disease (CVD) risk.

The report released this week in JAMA Internal Medicine used inter-nal sugar industry documents to describe how the industry sought to influence the scientific debate over the dietary causes of CHD in the 1950s and 1960s, a debate still reverberating in 2016.

The SRF initiated coronary heart disease research in 1965 and its first project was a literature review published in the New Eng-land Journal of Medicine (NEJM) in 1967. The review concluded there was “no doubt” that the only dietary intervention required to prevent CHD was to reduce dietary cholesterol and substitute polyunsaturated fat for saturated fat in the US diet.

The internal documents used for this report “show that the SRF initiated CHD research in 1965 to protect market share” and that its first project, a litera-ture review, was published in the NEJM in 1967 “without disclo-sure of the sugar industry’s fund-ing or role.”

The NEJM review served the sugar industry’s interests by argu-ing that epidemiologic, animal, and mechanistic studies associat-ing with sucrose with CHD were limited, implying they should not

be included in an evidentiary assessment of the CHD risks of sucrose, the report noted. Instead, the NEJM review argues that the only evidence modality needed to yield a definitive answer to the question of how to modify the US diet to prevent CHD was human randomized clinical trials (RCTs) that exclusively used serum choles-terol as a CHD biomarker.

“Randomized clinical trials using serum cholesterol level as the CHD biomarker made the high sucrose content of the American diet seem less hazardous than if the entire body of evidence had been considered,” the report said.

Following the NEJM review, the sugar industry continued to fund research on CHD and other chronic diseases “as a main prop of the industry’s defense.” For example, in 1971, it influenced the National Institute of Den-tal Research’s National Caries Program to shift its emphasis to dental caries interventions other than restricting sucrose, the report said.

“These findings, our analysis, and current Sugar Association crit-icisms of evidence linking sucrose to cardiovascular disease suggest the industry may have a long his-tory of influencing federal policy,” the report stated.

“This historical account of industry efforts demonstrates the importance of having reviews writ-ten by people without conflicts of interest and the need for finan-cial disclosure,. Scientific reviews shape policy debates, subsequent investigations, and the funding priorities of federal agencies,” the report continued.

Since 1984, the NEJM has required authors to disclose all conflicts of interest, and conflict of interest disclosure policies have been widely implemented since the sugar industry launched its

CHD research program, the report noted. Whether current conflict of interest policies are adequate to withstand the economic interests of industry “remains unclear.”

As of 2016, sugar control poli-cies are being promulgated in international, national, state and local venues, yet CHD risk “is inconsistently cited as a health consequence of added sugars consumption,” the report said. “Because CHD is the leading cause of death globally, the health com-munity should ensure that CHD risk is evaluated in future risk assessments of added sugars.”

Policymaking committees should consider giving less weight to food industry-funded stud-ies, and include mechanistic and animal studies as well as studies appraising the effect of added sug-ars on multiple CHD biomarkers and disease development,” the report concluded.

The documents used in the rpeort “leave little doubt that the intent of the industry-funded review was to reach a foregone conclusion. The investigators knew what the funder expected, and produced it,” noted Marion Nestle, Ph.D., in a related commentary. “Whether they did this deliberately, uncon-sciously, or because they genuinely believed saturated fat to be the greater threat is unknown.

“But science is not supposed to work this way. The documents make this review seem more about public relations than science,” Nestle added.

Responding to the report, the Sugar Association acknowledged that the Sugar Research Founda-tion “should have exercised greater transparency in all of its research activities, however, when the studies in question were published funding disclosures and transpar-ency standards were not the norm they are today.”

Ireland’s Ornua Opens New Kerrygold Butter Production, Packaging Facility With Capacity Of 50,000 Tons Of ButterMitchelstown, Ireland—Ornua (formerly the Irish Dairy Board) on Wednesday celebrated the offi-cial opening of Kerrygold Park, a 38-million-euro (US$42.8 mil-lion) state-of-the-art Kerrygold butter production and packing facility here.

The production facility will have a capacity of up to 50,000 tons (110 million pounds) of butter per year and will initially employ 65 people.

Kerrygold Park will have the capability to produce new butter products and formats not currently available in Ireland. Kerrygold Park will also house the “Green to Gold” Customer Innovation Cen-ter, which will be a key destination for international customer visits to Ireland.

Ornua is Ireland’s largest exporter of Irish dairy products, exporting to over 110 coun-tries. Last year, Ornua purchased 286,000 metric tons of dairy prod-ucts from Ireland’s dairy processors, up 16 percent from 2014. New fac-tory builds and factory expansions have recently been completed in the US, Africa, China, Germany, Spain, and the UK.

A key part of Ornua’s growth strategy is to significantly increase sales of the Kerrygold brand. Ker-rygold Park is intended to ensure a world-class supply chain both to support sales growth and the fur-ther development of the brand.

Today, Ornua said, Kerrygold is the number one branded butter in Germany. In the US, Kerrygold is the number one imported butter brand and the number three over-all butter brand.

“The opening of Kerrygold Park marks a special day for Ireland’s dairy industry. The quality of Irish milk is exceptional. From the fields to the processors, the success of Kerrygold is based on the outstand-ing quality of the milk and cream that goes into it,” said Kevin Lane, Ornua’s CEO.

“Now, we have a world-class production and packing facility to complete the value chain,” Lane continued. “Kerrygold Park is core to our ambitious plans to develop the Kerrygold brand from a but-ter brand to a dairy brand. Not only will the new facility signifi-cantly enhance our production, it also greatly improves our innova-tion capability and our ability to deliver premium dairy products to consumers around the world.”

The Kerrygold Park opening was attended by international custom-ers and representatives from the dairy and business communities.



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USDA Grant To Help Company Test Catalytic Electrolysis Process For Liquid Acid WheyWashington—A Colorado com-pany will use a USDA grant to test patent-pending technology that uses electrolysis to treat liquid acid whey.

US Secretary of Agriculture Tom Vilsack last week announced that 76 small businesses around the US will receive $7.4 million in grants to conduct research related to food security, natural resources, and agricultural issues.

The grants are being made through the Small Business Inno-vation Research (SBIR) program, a competitive funding source that is coordinated by the US Small Business Administration and administered by 11 federal agen-cies, including USDA, to encour-age small businesses to engage in high-growth research and devel-opment that has the potential for commercialization and could lead to significant public benefit.

Waste Hub, LLC, of Aurora, CO, is a small business whose mission is to take a proactive role in creating valuable alternatives to disposal for industrial waste streams.

In cooperation with yogurt pro-ducer Stonyfield Farm, Yale Uni-versity, and Catalytic Innovations LLC, Waste Hub is developing an electrolysis technology to address the problem of the acid whey that results from Greek yogurt produc-tion.

Waste Hub said it has dem-onstrated at laboratory scale that catalytic electrolysis may be used effectively to convert what is now a high-volume, expensive, and environmentally hazardous liquid acid whey stream into recyclable water and protein, bio-derived

hydrogen energy, and salable liqui-fied carbon dioxide.

The Waste Hub team has devel-oped patent-pending technology that uses electrolysis to treat liquid acid whey, neutralizing and remov-ing organic contaminants from the waste stream. This is coupled with an exclusive sublicense from Catalytic Innovations to a patent-pending electrolysis catalyst chem-istry that was developed at and is owned by Yale University.

In this Phase I SBIR project, Waste Hub will develop a physics-based design model and assemble, test, and demonstrate a pilot-scale electrolyzer using liquid acid whey waste from the Stonyfield Farm Greek yogurt manufacturing plant in Londonderry, NH.

While Waste Hub will only sample and discard the outlet streams from the process in this phase for purposes of design and development of a complete pilot in Phase II, the ultimate objectives of the technology are to provide a cash-positive technology option for Greek yogurt manufacturers that will: Generate electivity from the

hydrogen using a PEM fuel cell; Separate oxygen and liquify

the carbon dioxide stream for sale; and Recycle pre-filtered solids

and clean effluent water to the yogurt manufacturing process.

The hypothesis behind this project is that electrolysis using an iridium-based, heterogenized molecular oxidation catalyst on the anode and a platinum catalyst on the cathode will readily and durably oxidize the organic con-tent of liquid acid whey with rela-

tively low overpotential and will comprise an economically sound alternative energy technology for processing liquid acid whey.

The technical objectives are to confirm this hypothesis, namely: to demonstrate experimentally that acceptable rates of reaction and current density can be achieved using a continuous feed of liquid acid whey with low potential; to determine the most cost-effective method of separating suspended solids (protein) and assess the abil-ity to recycle the protein to the process; to collect samples and analyze the flow rates and compo-sition of all outlet streams and use this information in the develop-ment and validation of a process simulation model of the entire Waste Hub system, including the fuel cell and carbon dioxide liqui-fication process; and to produce designs and economic assessments of a scaled-up pilot and a full-scale system using the validated process model.

The National Institute for Food and Agriculture (NIFA) adminis-ters USDA’s portion of the SBIR program with additional funding provided by the Animal and Plant Health Inspection Service, the Agricultural Research Service, the Economic Research Service, and others.

More information on the SBIR projects announced by Vilsack last week are available on the NIFA website, at www.nifa.usda.gov.

Fonterra Australia Plans $4.3 Million Investment To Boost Wynyard Plant’s Cheese And Whey CapacityWynyard, Tasmania, Australia—Fonterra Australia is investing $4.3 million to boost cheese and whey capacity at its Wynyard plant in Tasmania.

The investment will increase the plant’s cheesemaking capacity by 8,000 metric tons (17.6 million pounds) per annum by quickening every step of the cheesemaking process.

The extra capacity will help the Wynyard plant keep up with the growing demand for Fonterra’s cheese and whey from its domestic and export customers.

The Wynyard plant has been running at full capacity since a fire destroyed Fonterra Australia’s Vic-torian cheese plant at Stanhope in December 2014.

The Wynyard expansion will see Fonterra’s total Australian cheese production increase by 50 percent once the Stanhope plant is commissioned in mid-2017, the company reported.

“Tasmania is an important region for Fonterra and our multi-hub strategy, and we continue to invest here for the long-term,” said Steve Taylor, Fonterra Aus-tralia regional operations manager south.


North Central Cheese Industries Association Annual ConferenceOctober 11 - 13 • Holiday Inn, Sioux Falls, SD

Holiday Inn100 West 8th StreetSioux Falls, SDPh: 605-339-2000

Everyone is Welcome!

Conference Fees$115 Members$145 Non-members$35 Banquet d inner$25 Midwest Dairy Research Forum

Registration ProcessRegister on-line at www.northcentralcheese.orgor download the registration form and return to:

Susan EschbachNCCIA1512 125th Lane NE - #142Blaine, MN 55449

QuestionsSusan Eschbach

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P: 612-968-1080

Schedule of Events

Tuesday, October 11, 5:00 pm Welcome: Mary Wilcox, Midwest Dairy Association A World of Opportunities for Milkfat: Bill Graves, National Dairy Council Changing Nutritional Opinions on Milkfat: Moises Torres Gonzales, NDC Networking reception

Wednesday, October 12, 8:00 am Milkfat and its Impact on Domestic Dairy Markets: Marin Bozic, University of Minnesota Unique Functionality of Milkfat: Ravin Gnanasambandam, Land O’ Lakes Anhydrous Fat - How it’s Manufactured: Craig Whittaker, GEA Future Applications of High Fat Dairy Products: KJ Burrington, University of Wisconsin-Madison Global Marketing Opportunities for Milk and Milkfat: Aaron Riippa, GMI Panel Discussion: Lloyd Metzger, South Dakota State University (moderator)

Wednesday, October 12, Noon Lunch and Registration Stickney Hill Dairy Pro� le--Cheese Expansion Project: Stickney Hill Dairy Situation & Outlook in the I-29 Corridor: Marin Bozic, University of Minnesota International Dairy Situation & Outlook: Brian Rice, Rice Dairy LLC Community Involvement and Developing a Strategy to Build Community Support on Dairy Farms: Natasha Mortenson, River View Discussion Forum: Lucas Lentsch, Midwest Dairy (moderator)

5:00 pm Social Hour and Cheese Auction6:30 pm Banquet and Awards Dinner

� ursday, October 13, 9:00 am Advances in Technology Developing a “Clean” Employee Culture: Sara Mortimore, Land O’ Lakes An Overview of Plant Sanitation Programs: Tonya Schoenfuss, University of Minnesota Advances in Personal Hygiene: Chris Nelson, Best Sanitizers Advances in Cleaning Technology: Mike Rindy, Hydrite Chemical Advances in Cleaning Technology: Tony Simas, Ecolab 11:50 am Conference Adjourns

Midwest Dairy Research Forum: Milkfat Opportunities

NCCIA Annual Conference

First Choice Ingredients Acquires Production Facility In Menomonee Falls, WI; Will More Than Double Its FootprintGermantown, WI—First Choice Ingredients, a dairy flavor special-ist, recently announced that it has added major new manufactur-ing space with the acquisition of an additional 83,000-square-foot production facility in Menomonee Falls, WI.

The new plant will more than double First Choice Ingredients’ footprint and will become the com-pany’s third large-scale production facility in Wisconsin.

The company’s main campus in Germantown, WI, currently houses three facilities, including dry and wet product manufactur-ing, research and development, and administrative offices.

First Choice Ingredients (FCI) is considered a market leader in con-centrated dairy ingredients derived through fermentation and reac-tion technologies. Through these manufacturing processes, FCI said it is able to produce cheese, butter, milk, yogurt and cream concen-trates with flavor strength levels many times stronger than their original form.

FCI said the addition of this new plant will help the company keep up with growing demand for its dairy products.

“We have experienced double-digit growth every year for the last decade,” said Jim Pekar, FCI’s president. “This new, world-class facility will enable us to grow responsibly to meet the needs of our customers and take advantage of new opportunities. We have customers all over the world, and they all know the best dairy prod-ucts come from Wisconsin.”

The purchase of the new plant, which was formerly owned by Avoca BioProcessing, will also include much of the production equipment and machinery. The new plant has the capacity to pro-duce over 10 million pounds of dairy ingredients annually.

First Choice plans to add five new laboratories with pilot plant capabilities, which the company said will be critical to creating and scaling up new and innovative products for customers.

Adding this kind of production and R&D capabilities will enable FCI to expand its custom flavors division, which is already one of the largest dairy-only research and development units in the US, Pekar said.

FCI expects to test and evaluate the recently purchased equipment in the coming weeks, with a goal of being fully operational in early 2017. Pekar also estimates a 30 per-cent increase in staffing over the next 18 months.

Chr. Hansen Acquires LGG Probiotic Strain From Valio OYHoersholm, Denmark—To fur-ther strengthen its probiotics offering, Chr. Hansen is acquiring LGGR, which is described as the world’s best documented probiotic strain, from Finland’s Valio OY.

Alongside Chr. Hansen’s own BB-12R strain, the Lactoba-cillus rhamnosus GG (pro-tected under the trade mark LGGR) is the best docu-mented probiotic strain in the world, according to Chr. Hansen. It has been used in food and dietary supplements since 1990 and has a proven beneficial effect on the gastrointestinal and immune system. It has been stud-ied in more than 200 clinical stud-ies and described in more than 800 scientific publications.

“The LGG strain and our own probiotic strain BB-12 are the

best documented probiotic strains in the world and the acquisition allows us to capture the full poten-tial of the LGG brand across mar-kets for dietary supplements and infant formula offerings, as well as pursuing new opportunities in dairy,” said Cees de Jong, CEO of Chr. Hansen Holding A/S.

“The markets for well docu-mented probiotic strains are experiencing very strong growth

in dietary supple-ments and drives an entire category in fermented milk products, such

as yogurt, kefir, etc.,” said Lassa Nagell, senior vice president, human health, Chr. Hansen. “We believe that there are vast opportu-nities for the LGG brand consider-ing Chr. Hansen’s wide geographic reach and deep technical knowl-edge.”

Chr. Hansen has been the larg-est producer of LGG products for human dietary and infant formula

for more than 10 years. In addi-tion to acquiring the full rights to the strain, Chr. Hansen also takes over a number of specialty strains already in production and a bac-terial strain collection of around 3,200 strains.

“An important element in the deal is closer cooperation between the two companies’ world-leading innovations teams, which will fur-ther strengthen the impressive sci-ence backing LGG,” said Annikka Hurme, CEO of Valio OY.

The price of the acquisition is 73 million euros (US$82.2 million). The acquired business includes the LGG trademarks and strain and related customer agreements, a collection of 3,200 strains and a small production site in Tikkurila, Finland, which currently produces the LGG strain and a number of specialty strains used in dairy pro-duction, etc.

Chr. Hansen’s acquisition of the LGG business is expected to close during the fall of 2016.

WWW.CHR-HANSEN.COM

Billedefi rkantTekstbundImage-tekstLogoTekst bundweb

Chr. HansenCultures & Enzymes

Cultures & Enzymes to Optimize Your Production• Consistency• Control• Convenience

Cultures & Enzymes to Di� erentiate Your Brand• Extend shelf life naturally• Clean Label• Improve texture • Create your signature fl avor

World Class Customer Support• Partnership in innovation• Unmatched technical support

Chr. Hansen is the leading supplier of cultures, probiotics, enzymes and natural colors for the dairy and food industry.

Chr. Hansen, Inc9015 W. Maple StreetMilwaukee, WI 53214Toll free: 1 (800) 558-0802

Find out more at www.chr-hansen.com

WWW.CHR-HANSEN.COM


TWO GREAT MEETINGSONE CONVENIENT LOCATION

Join industry researchers, ingredient end-users and others as they come together to discuss cutting edge dairy research, technology, applications and opportunities for dairy ingredients!

ADPI Technical SymposiumResearch and Opportunities

Join researchers from the University of WI-Madison, Cornell, NC State and South Dakota State as they provide updates on dairy ingredient research from around the country.

Hot agenda topics include: clean label; Codex standards; new membrane processing; spray-drying technology; plant hygienic zone design and FSMA.

ADPI Lactose SeminarComplete Ingredient Overview

Lactose manufacturers, marketers, traders and end users come together to share opportuni-ties for this valuable dairy carbohydrate.

Lactose manufacturing, economics, applica-tions and market conditions will be discussed at this seminar.

Two great meetings in one convenient location

you will not want to miss! Registration discounts

are available for those who attend both.

The ADPI Technical Symposium will be held October 25 & 26 at the Madison Concourse Hotel and Governor's Club in Madison, WI

Interested in both meetings? Then take advantage of the registration discount available for attendees of both meetings.

The ADPI Lactose Seminar will be held October 27th at the Madison Concourse Hotel and Governor's Club in Madison, WI.

Online registration is now available at www.adpi.org

126 N. Addison Avenue, Elmhurst, IL 60126 www.adpi.org P: 630-530-8700 Email: [email protected]

For more information, visit www.adpi.org

Top Finishers Announced In Minnesota State Fair Butter And Cheese CompetitionSt. Paul, MN—First, second and third place winners in the 2016 Minnesota State Fair Butter & Cheese Contest have been announced.

The contest, hosted by the Upper Midwest Dairy Indus-try Association, featured five cheese and butter classes. The top three winners in each class include:

ButterFirst place: Joel Braun, Asso-ciated Milk Producers, Inc. (AMPI), New Ulm, MN, 99.085Second place: Forrest Bierau-gel, AMPI, New Ulm, MN, 99.084Third place: Richard McMonagle, AMPI, New Ulm, MN, 99.083

Block CheddarFirst place winner: Dale Schmidt, Land O’Lakes, Kiel, 98.83Second place winner: John Stahl, Land O’Lakes, Kiel, WI, 98.500Third place: Team LeSueur, LeSueur Cheese, LeSueur, MN, 98.250

Barrel CheddarFirst place winner: Doug Anderson, First District Asso-ciation, Litchfield, MN, 98.917Second place: Jared Tern-ing, First District Association, Litchfield, MN, 98.833Third place: Vern Loch, Jr., First District Association, Litchfield, MN, 98.750

Miscellaneous CheeseFirst place winner: Team Lake Norden, Agropur, Lake Nor-den, SD, Smoked Provolone, 98.917Second place: Lynne Reeck, Singing Hills Dairy, Nerstrand, MN, Dilly Garlic Cheese Curds, 98.867Third place: Team Lake Nor-den, Agropur, Lake Norden, SD, Low Moisture Whole Milk Mozzarella, 98.833

Artisan CheeseFirst place: Rueben Nilsson, The Lone Grazer Creamery, Minneapolis, MN, String Cheese, 99.117Second place: Production Team, Stickney Hill Dairy, Kimball, MN, Pumpkin Spice Chevre, 99.083Third place: Caves of Farib-ault Team, Caves of Faribault, Faribault, MN, Blue Cheese, 99.000.

3-A Releases New Sanitary Standard For Robot-Based Automation SystemsMcLean, VA—3-A Sanitary Stan-dards, Inc. (3-A SSI) has released 3-A Sanitary Standard Number 103-00, “3-A Sanitary Standard for Robot-based Automation Sys-tems.”

This is the first industry stan-dard for the minimum sanitary (hygienic) requirements for design, materials, and fabrication/instal-lation of robot-based automation systems (RBAS), 3-A SSI said.

The new standard applies to the hygienic applications of indus-trial robot systems integral to food processing, preparation, or other applications or industries where process equipment cleaning and sanitization is required. The stan-dard addresses the robot and ancil-lary robotic system equipment,

including the robot base, end-of-arm tooling (EOAT), tool chang-ers, and robot dressing.

Specifically, the standard includes materials and fabrica-tion requirements as well as spe-cial requirements unique to robot systems, including zone consid-erations, programming require-ments, controller requirements, wiring/robot dressing requirements and tooling, and installation. The standard does not apply to robots associated with milking systems on dairy farms.

The new standard reflects almost five years of work to develop crite-ria for robots employed in the food processing environment that allow robots to be cleanable and not a source of food contamination.

With the introduction of the new standard, RBAS manufac-turers, processors, and regulatory sanitarians now have accepted and uniform criteria for materials of construction, fabrication require-

ments for product contact surfaces and non-product contact surfaces, and informative appendices to ensure cleanability and inspect-ability in a food processing plant.

During the development of this new standard, 3-A SSI was also engaged in the drafting and approval in 2014 of ANSI/3-A 00-00-2014, “3-A Sanitary Stan-dards for General Requirements,” a compendium of updated criteria and requirements common to the entire inventory of 3-A Sanitary Standards and 3-A Accepted Prac-tices.

Purchasers of the new RBAS standard are encouraged to also obtain a copy of ANSI/3-A 00-00-2014, which provides many of the criteria referenced in the new robotics standard.

These standards and other 3-A SSI documents are available from 3-A SSI at www.3-a.org, under “Standards & Accepted Practices Store.”


www.cheesereporter.com/events.htmSUPPLIER NEWS

COMPANY NEWS

PEOPLE

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CMY

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Cheese Reporter Ad.pdf 1 2/25/15 5:07 PM

EVAPORATION AND DRYING PRODUCT AND APPLICATIONS MANAGER

THE POSITION:

Tetra Pak Inc. is looking for a Product and Applications

Manager for the Evaporation and Drying group. This

individual will have the opportunity to interface within all

levels of the organization and make a difference for our

customer base. There will be opportunities to touch all areas

of the business and will provide unlimited career

growth potential.

The role’s primary responsibility is to promote and secure

new sales for Evaporation and Dryer systems for the Dairy,

Cheese and Prepared Foods categories, ensuring our

portfolio and solutions meet the needs of our NA-based

customers. Primary tasks include marketing, pre-projecting

calculations and quotations, preparation of sales material,

commercial contracts for negotiation with end customers

and securing profitable orders.

PRIMARY OBJECTIVES

To secure targeted volumes of Evaporation and Dryer

equipment and project sales utilizing proven process

designs, approved cost calculation models, approved

contract negotiation methodology utilizing the global Model

Contract documents.

• Responsibility to design and specify E&D technical

solutions including agreed functionality and

performance guarantees will be the responsibility of

the CPS -US -Hub or CPS BU NL support team.

• Preparation of sales and marketing plans, securing

Evaporation and Dryer application budgets to execute

and deliver on the agreed NA Market Area strategies

and business growth ambitions.

• Quotation/tender preparation for new system sales

enquiries, including: opportunity evaluation, validation,

prioritization and indentification of both commercial

and technical risk for Tetra Pak.

• Coordination and team leadership of all Market Area

activities required to compile E&D quotations/tender

documents, including final editing of customer proposal

document, with Market Area sales team.

SPECIFIC ACCOUNTABILITIES - OVERVIEW

• Appraise current and planned customer needs and

advise on the application of company products or

service to customer requirements.

• Prepare proposals and detailed costing and prepare

contract documents for negotiation with customers.

• Recommend variations to product, or design and

participate in regular meetings to communicate

intelligence.

EDUCATION, EXPERIENCE AND

COMPETENCIES REQUIRED

• Previous experience in organization and prioritization

• Understanding of evaporation and drying required

• Bachelor’s degree required

• Previous experience in a customer-interfacing role

• Travel 50-70%

Interested applicants may submit resumes to [email protected].

EOE/M/F/Veteran/Disabled

Tetra Pak Inc.’s Cheese and Evaporation and Drying division specializes in cheese making equipment and provides proven

solutions for evaporation and drying powder technologies. Tetra Pak Processing Equipment is the world’s leading food

processing and packaging solutions company. Our motto, “PROTECTS WHAT’S GOOD,” reflects our position to make food

safe and available, everywhere.

Evaporation_manager_7X8.indd 1 9/15/2016 9:16:08 AM

Registration Still Available For Cornell HTST Pasteurizer Workshop Oct. 11-13Ithaca, NY—There is still time to register for Cornell University’s HTST Pasteurizer Workshop here Oct. 11-13 at Stocking Hall on campus.

This three-day workshop is designed for pasteurizer opera-tors, but should be beneficial to all involved with milk pasteuriza-tion, including production, quality assurance and maintenance per-sonnel.

The course is led by industry experts and representatives from New York State Department Agri-culture & Markets, and provides an overview of the design, opera-tion, cleaning and maintenance of HTST systems.

All required regulatory tests for HTST pasteurizers will be discussed

and presented in a hands-on format to meet the training requirements for performing HTST system test-ing under the New York State Bro-ken Seal Policy.

The early registration deadline is Sept. 26. Cost to attend prior to the deadline is $550 for New York State residents and $660 for out-of-state residents.

The registration fee after Sept. 26 is $660 for NYS residents and $792 for non-residents.

Enrollment is limited to 35 par-ticipants on a first-come, first-serve basis; please send your registration as soon as possible.

Registration and more informa-tion is available online at www.events.cornell.edu/event/htst_pas-teurizer_workshop.

SWCMA Annual Meeting Set For Oct. 6 In MonroeMonroe, WI—The Southwestern Wisconsin Cheesemakers Asso-ciation (SWCMA) will hold its annual meeting here Thursday, Oct. 6 at the Ludlow Mansion.

Registration will begin at 3:30 p.m. Dinner, sponsored by Brad Swan of Sealed Air; Gary Pieper, Chr. Hansen; Dave Welte, Hydrite Chemical Co.; and Fran Krajco, Nelson-Jameson, will start at 6:30 p.m.

The deadline to register is Sept. 26. Please contact SWCMA’s Linda Lee with number attending to get an accurate dinner count.

To make a reservation, send an email to: [email protected].

Sept. 27-28: ADPI Dairy Ingre-dient Seminar, Fess Parker Hotel, Santa Barbara, CA. For details, visit www.adpi.org.

•Sept. 27-29: 7th Symposium On Milk Genomics & Human Health, UC-Davis, Davis, CA. For more details, visit www.milkgenomics.org.

•Oct. 11-13: NCCIA Annual Meeting, Holiday Inn City Cen-tre, Sioux Falls, SD. For details, visit www.northcentralcheese.org.

•Oct. 19-21: IDF World Dairy Summit, Rotterdam, Nether-lands. For details, visit www.idfwds2016.com

•Oct. 31-Nov. 2: NDB, NMPF, UDIA Joint Annual Meeting, Gaylord Opryland, Nashville, NT. Visit www.nmpf.org.

•Nov. 6-9: PACK Expo Interna-tional, McCormick Place, Chi-cago, IL. For more details, visit www.packexpointernational.com.

•Jan. 22-24, 2017: Winter Fancy Food Show, San Francisco, CA. Visit www.specialtyfood.com.

•Jan. 29-Feb. 1: 2017 Dairy Forum, J.W. Marriott Orlando Grande Lakes, Orlando, FL. Visit www.idfa.org.

•March 7-8: 2017 US Champi-onship Cheese Contest, Green Bay, WI. Visit www.uschampi-oncheese.org.

•April 12-13: 2017 Wisconsin Cheese Industry Conference, Alliant Energy Center, Madi-son, WI. For details, visit www.cheeseconference.org.

•April 23-25: ADPI/ABI Joint Annual Conference, Chicago Marriott Downtown, Chicago, IL. Visit www.adpi.org.

•June 4-6: The International Dairy • Deli • Bakery Associa-tion (IDDBA), Anaheim, CA, For more information, visit www. iddba.org

PLANNING GUIDE


MARKET PLACECLASSIFIED ADVERTISINGphone: (608) 246-8430 fax: (608) 246-8431e-mail: [email protected]

rvin

gth

eWorld's Dairy Industry W

eekly

Since 1876

Classified ads should be placed by Thursday for the Friday issue. Classified ads charged $.75 per word. Classified ads payable in advance. Display Classifieds charged per column inch. For more information, call 608-246-8430.

1. Equipment for Sale

MSA 200 WESTFALIA SEPARATOR. Just arrived. Perfect Bowl condition - NO PITTING. Two for sale. Call Great Lakes Separators at (920) 863-3306 or e-mail [email protected].

FOR SALE: Car load of 300-400-500 late model open top milk tanks. Like new. (262) 473-3530

HIGH CAPACITY SEPARATOR: Alfa-Laval hmrpx 718 HGV hermetic separator. 77,000 pounds per hour sep-aration/110,000 pounds per hour stan-dardization. Call Great Lakes Separator at 920-863-3306 or email [email protected].

1. Equipment for Sale

SEPARATOR NEEDS - Before you buy a separator, give Great Lakes a call. TOP QUALITY, reconditioned machines at the lowest prices. Call Dave Lam-bert, Great Lakes Separators at (920) 863-3306; [email protected].

FOR SALE: 1500 and 1250 cream tanks. Like New. (800) 558-0112. (262) 473-3530.

2. Equipment Wanted

WANTED TO BUY: Westfalia or Alfa-Laval separators. Large or small. Old or new. Top dollar paid. Call Great Lakes Separators at (920) 863-3306 or email [email protected]

2. Equipment Wanted

ULLMER’S DAIRY EQUIPMENT is looking to buy used daisy hoops, midget hoops, A-frame presses, 20- pound block molds, water/milk silos, homogenizers, and separators. Con-tact us at (920) 822-8266 or e-mail us at [email protected].

3. Cheesecloth

CHEESECLOTH FOR ALL YOUR CHEESEMAKING NEEDS- Grade 60 (32x28) White Cheesecloth: $241*/Case. 36” Wide x 60 Yards. All con-structions, medical grade. Microfiber and dairy wipers too. Contact Lucy Bauccio at Monarch Brands by emaill-ing [email protected] or call 267-238-1643

4. Walls, Flooring

EPOXY OR FIBERGLASS floors, walls, tank-linings, and tile grouting. Installed by M&W Protective Coating Co. LLC. Call (715) 234-2251

4. Walls, Flooring

EXTRUTECH PLASTICS Sanitary POLY BOARD© panels provide bright white, non-porous, easily cleanable surfaces, perfect for non-food con-tact applications. CFIA and USDA accepted and Class A for smoke and flame. Call 888-818-0118 or epiplas-tics.com.

6. Promotion & Placement

PROMOTE YOURSELF - By con-tacting Tom Sloan & Associates. Job enhancement thru results oriented professionals. We place cheese mak-ers, production, technical, maintenance, engineering and sales management people. Contact Dairy Specialist David Sloan, Tom Sloan or Terri Sherman. Tom Sloan & Associates, Inc. PO Box 50, Watertown, WI 53094. Call: (920) 261-8890 or FAX: (920) 261-6357; or email: [email protected]

10. Cheese & Dairy Products

KEYS MANUFACTURING: Dehydrators of scrap cheese for the animal feed idustry. Contact us for your scrap at (217) 465-4001; email [email protected].

11. Real Estate

DAIRY PLANTS FOR SALE: http://dairyassets.webs.com/dairy-plants. Call Jim at 608-835-7705

The “Industry’s” Market Place for Products, Services, Equipment and Supplies, Real Estate and Employee Recruitment

General Machinery CorporationCall NOW at 1-888-243-6622

Email: [email protected]



3010 TU-WaySimultaneously cuts either two 40-lb blocks

or up to four 20-pound Mozz loaves.



General Machinery Corporation

1820 Single DirectionCheese Cutter

Reduces wire cutable product into uniform portions for dicing, shredding,melting, or blending.

Call NOW at 1-888-243-6622Email: [email protected]

www.genmac.com

General Machinery Corporation

Hydrauflake ChunkerFrozen Block Flaker

Designed to chunk frozen cheese and butter blocks in preparation for further processing.

Call NOW at 1-888-243-6622Email: [email protected]

www.genmac.com

3001EW TU-WAY Exact Weight Cheese Cutter

Designed to cut cheese blocks into portions for packaging or further processing.

CHEESECLOTH• All constructions available• Medical grade, superior quality• Manufactured in clean-room environment• Packed in convenient pre-folded boxes

Grade 60 (32x28) White Cheesecloth

$241*/Case36” Wide x 60 Yards

CHEESE REPORTER SPECIAL

*Sold by the case only

We carry a full line of dairy industry products including microfiber cloths, mops, and specialized terry udder-wiping products.

Contact Lucy Bauccio to discuss your needs & discount volume pricing

267-238-1643 • [email protected]

14. Warehousing

FREEZER SPACE AVAILABLE: We have expanded and have freezer space available. Please contact Bob at Martin Warehousing at 608-435-6561 ext *229 or email Bob at [email protected]

REFRIGERATION, DRY & FROZEN STORAGE SPACE AVAILABLE: We’ve added more cooler space and a heated dry storage area. Contact: Eric at SUGAR RIVER COLD STORAGE at Call 1-877-283-5840 or email [email protected]

15. Testing Services

Western Repack

Reclamation Services• Cheese Salvage/Repacking• 640# Block Cutting

Handling cheese both as a service and on purchase.

Bring us your special projects

Western Repack, LLC(801) 388-4861

We Purchase Fines and Downgraded Cheese

Plant ManagerBig Stone, South Dakota

Saputo Cheese USA Inc. is seeking a Plant Manager for its Big Stone City, SD plant. This position assumes responsibility for communicating and demonstrating the company culture and values, fostering positive employee relations and leading and managing all functions within an aging, drying and packaging facility.

Qualifi cations include: Values that align with the Saputo culture: Effi ciency through Simplicity; Family Oriented Environment; Ownership & Committment; Hands on Approach and Passion Experience in successfully leading, coaching, mentoring and developing a team in a “hands on” environment Bachelor’s Degree in operations, food science or a related fi eld or equivalent related experience Five or more years of solid supervisory/management experience in food manufacturing, preferably in the dairy/cheese industry. Exceptional communication skills

If you are interested in joining a progressive company with a competitive compensation and benefi ts pack-age, please view position details and apply via the Saputo Careers USA web portal at www.Saputo.com.

All qualifi ed applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, disability or protected veteran status.

Plant Manager

Lena, WI

Saputo Cheese USA, Inc., has an immediate opportunity available for a Plant Manager for our Lena, WI facility.

The Plant Manager will be responsible to manage all aspects of a large natural cheese manufacturing, packaging and whey processing facility. Qualified candidates will possess a Bachelor’s Degree in Food Science or related field, and a minimum of 5 years management experience in food manufacturing/processing, preferably within the dairy industry. Seeking following key qualities: strong leadership and interpersonal skills strong communication and organizational skills ability to build and maintain positive relationships strong focus on food safety and quality solid budgetary experience

Competitive benefit package. EOE If interested in being considered, please mail or e-mail a cover letter and resume to: Saputo Cheese USA, Inc. Attn: Molly Evgenides

317 Rosera Street Lena, Wisconsin 54139 [email protected]


Circle, copy and FAX to (608) 246-8431 for prompt response

CHEESE REPORTER READER RESPONSE CARD(Print Your Name and Address Clearly Below)

Name _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Title _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Company _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Address _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

City/St/Zip _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

E-Mail _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

TYPE OF BUSINESS:___Cheese Manufacturer___Cheese Processor___Cheese Packager___Cheese Marketer(broker, distributor, retailer___Other dairy processor (butter, cultured products)___Whey processor___Food processing/Foodservice___Supplier to dairy processor___Other________________

JOB FUNCTION:___Company Management___Plant Management___Plant Personnel___Laboratory (QC, R&D, Tech)___Packaging___Purchasing___Warehouse/Distribution___Sales/Marketing___Other_______________

For information about the adver-tisements or new product infor-mation, circle the number below which corresponds to the ad or article in which you are interested.

Issue Date: 9/16/16

1 2 3 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128

PLEASE SEND ME MORE INFORMATION ON:___Subscribing to Cheese Reporter___Cheese Reporter’s Reference Books

___Material to advertise in Cheese Reporter___Other____________________________

September 14, 2016—AMS’ National Dairy Products Sales Report. Prices included are provided each week by manufacturers. Prices collected are for the (wholesale) point of sale for natural, unaged Cheddar; boxes of butter meeting USDA standards; Extra Grade edible dry whey; and Extra Grade and USPH Grade A nonfortified NFDM. • Revised

WEEK ENDINGStyle and Region Sept. 10 Sept. 3 Aug. 27 Aug. 20

40-Pound Block Cheddar Cheese Prices and Sales Weighted Price Dollars/PoundUS 1.7958 1.8251 1.8078 1.7756Sales Volume PoundsUS 12,643,660 14,532,599 14,533,164 13,608,846

500-Pound Barrel Cheddar Cheese Prices, Sales & Moisture Contest

Weighted Price Dollars/PoundUS 1.8445 1.9670• 2.0033 1.9737 Weighted Price Adjusted to 38% Moisture US 1.7613 1.8765• 1.9057 1.8816 Sales Volume PoundsUS 10,390,836 9,243,193• 8,873,736 10,344,607Weighted Moisture Content PercentUS 35.07 35.01• 34.83 34.96

Butter

Weighted Price Dollars/PoundUS 2.0982 2.1204 2.2202 2.2444Sales Volume PoundsUS 1,974,896 2,423,041 2,552,706 3,111,520

Dry Whey Prices

Weighted Price Dollars/PoundsUS 0.2973 0.2976• 0.2926• 0.2817Sales Volume US 7,083,257 6,145,046• 7,001,043• 8,662,815

Nonfat Dry Milk

Average Price Dollars/PoundUS 0.8819 0.8533 0.8644 0.8660Sales Volume PoundsUS 13,357,979 25,404,021• 16,489,078 13,158,852•

DAIRY PRODUCT SALES

$1.25

$1.30

$1.35

$1.40

$1.45

$1.50

$1.55

$1.60

$1.65

$1.70

$1.75

$1.80

$1.85

S O N D J F M A M J J A S

40-Pound Block Avg

CME vsAMS

Class 1: Equivalent Lb. Fat Lb. SNF LB. Fluid Per CWTNorthern CA $2.3094 $0.8705 $0.0241 $17.77Southern CA $2.3094 $0.8705 $0.0272 $18.04

Statewide Average CWT Price Based Upon Production $17.79 Based Upon Utilization $17.92

Commodity Market Prices Product $ Per LB.Cheese, US 40-block, CME $1.7050AA Butter, CME $2.0560CA Extra Grade & Grade A NFDM $0.8481Western Dry Whey (Mostly) $0.3213

Commodity Reference Price for October Class 1 - $18.2507

California Class 1 Minimum Prices & Other Advanced Prices - October 2016

CME Butter Tracker- 2015 vs. 2014 vs 2016

$1.20

$1.40

$1.60

$1.80

$2.00

$2.20

$2.40

$2.60

$2.80

$3.00

J F M A M J J A S O N D

$1.25

$1.35

$1.45

$1.55

$1.65

$1.75

$1.85

$1.95

12-…M J J A 15-…

Barrel Block

Daily CME Barrel/Spread PriceSince May 12, 2016

DAIRY FUTURES PRICESSETTLING PRICE *Cash SettledDate Month Class III* Class IV* Dry Whey* NDM* Butter* Cheese*9-9 September 16 16.51 14.31 30.250 88.250 208.300 1.76809-12 September 16 16.43 14.26 30.250 88.250 208.000 1.75509-13 September 16 16.47 14.26 30.350 88.475 207.850 1.75809-14 September 16 16.45 14.24 30.350 88.025 207.000 1.75809-15 September 16 16.41 14.24 30.350 88.425 206.750 1.7550

9-9 October 16 16.70 14.96 35.000 94.500 211.575 1.75609-12 October 16 16.43 14.96 35.000 94.600 211.075 1.72809-13 October 16 16.50 14.96 35.000 94.800 211.500 1.73509-14 October 16 16.47 14.93 35.000 93.500 210.000 1.72509-15 October 16 16.33 14.72 34.500 94.250 206.000 1.7290

9-9 November 16 16.59 15.44 36.075 100.400 211.250 1.74109-12 November 16 16.35 15.44 36.000 99.900 210.600 1.71209-13 November 16 16.45 15.38 36.000 100.000 211.600 1.71709-14 November 16 16.42 15.37 35.800 96.750 209.775 1.71909-15 November 16 16.40 15.22 35.800 100.500 206.750 1.7230

9-9 December 16 16.20 15.47 37.000 103.000 205.125 1.69709-12 December 16 16.05 15.45 37.000 103.000 205.275 1.68109-13 December 16 16.11 15.45 37.000 103.500 206.450 1.68109-14 December 16 16.13 15.44 36.700 100.000 204.000 1.68109-15 December 16 16.12 15.33 36.700 103.500 202.350 1.6900

9-9 January 17 15.96 15.53 38.475 106.500 198.025 1.67009-12 January 17 15.90 15.53 38.475 106.500 198.750 1.66309-13 January 17 15.84 15.53 38.000 106.500 198.750 1.66809-14 January 17 15.92 15.45 37.800 103.000 198.525 1.66909-15 January 17 15.92 15.45 37.800 107.225 198.000 1.6700

9-9 February 17 16.01 15.75 39.475 108.300 198.525 1.66509-12 February 17 15.95 15.75 39.475 108.325 198.775 1.66809-13 February 17 15.93 15.75 39.475 108.325 198.775 1.67209-14 February 17 15.95 15.75 38.175 106.525 199.000 1.67209-15 February 17 15.99 15.75 37.500 109.250 198.500 1.6730

9-9 March 17 16.04 15.94 39.000 111.500 199.250 1.67009-12 March 17 16.03 15.94 39.000 111.500 199.750 1.67409-13 March 17 15.99 15.94 38.250 111.500 199.750 1.67509-14 March 17 16.07 15.88 38.000 111.000 199.750 1.67809-15 March 17 16.13 15.88 38.000 111.925 199.500 1.6780

9-9 April 17 16.12 16.16 39.250 114.325 200.000 1.67509-12 April 17 16.12 16.16 39.250 114.325 200.000 1.67709-13 April 17 16.11 16.16 39.250 114.325 200.000 1.68209-14 April 17 16.11 16.16 38.500 114.325 200.000 1.68209-15 April 17 16.13 16.16 38.500 114.325 200.000 1.6820

9-9 May 17 16.26 16.36 39.000 116.575 200.525 1.69809-12 May 17 16.24 16.36 39.000 116.575 200.525 1.69809-13 May 17 16.23 16.36 39.000 116.575 200.525 1.69809-14 May 17 16.25 16.36 38.500 116.575 200.525 1.69809-15 May 17 16.25 16.36 38.500 116.575 200.525 1.6980

9-9 June 17 16.43 16.44 39.500 117.750 200.525 1.69809-12 June 17 16.42 16.44 39.500 117.750 200.550 1.69809-13 June 17 16.46 16.44 39.500 117.750 200.550 1.69809-14 June 17 16.46 16.44 38.750 117.775 200.550 1.71209-15 June 17 16.46 16.44 38.750 117.775 201.000 1.7150

9-9 July 17 16.66 16.66 39.000 118.575 204.500 1.72509-12 July 17 16.65 16.66 39.000 118.575 204.500 1.72509-13 July 17 16.57 16.66 38.800 118.575 204.500 1.72509-14 July 17 16.59 16.66 38.800 118.575 204.500 1.72509-15 July 17 16.60 16.66 38.800 118.575 204.475 1.7250Interest - Sept. 8 30,825 3,859 4,069 4,876 6,750 23,208

CHEESE REPORTERSeptember 16, 2016 Page 15Page 15

DAIRY PRODUCT MARKETSAS REPORTED BY THE US DEPARTMENT OF AGRICULTURE

WHOLESALE CHEESE MARKETS

WEEKLY COLD STORAGE HOLDINGSSELECTED STORAGE CENTERS IN 1,000 POUNDS - INCLUDING GOVERNMENT

DATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUTTER CHEESE

9/12/16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,881 87,8789/01/16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,497 89,021Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -1,616 -1,143

NATIONAL - SEPT. 9: Midwest milk production is down and cheese manufacturers in this important cheesemaking region are currently reluctant to purchase spot milk to bolster production unless needed for commitments, or at occasional times when a discount is avail-able. Some manufacturers have responded to reduced milk by scheduling facility downtime to do maintenance and repairs. Cheese block availability is lower in the Midwest and West and commodity cheese stocks in the West are long, but not at levels leading sellers to take steps to clear stocks. European cheese supplies available for immediate sale from manufacturers are tight to scarce.

NORTHEAST- SEPT. 14: Cheese manufacturing schedules are somewhat active where milk supplies permit. Reports indicate that milk volumes, in general, are mostly steady while components are marginally improving but remain at lower seasonal levels. Mozzarella cheese production and Cheddar for aging programs remain steady. Contract orders are expediting most transactions. Process cheese interest is seasonally lighter. Cream cheese producers note typical strong fall orders. Wholesale prices, delivered, dollars per/lb:Cheddar 40-lb blocks: $2.1075 - $2.3925 Process 5-lb sliced: $1.8350 - $2.3150Muenster: $2.0925 - $2.4425 Swiss Cuts 10-14 lbs: $2.9175 - $3.2400

MIDWEST AREA - SEPT. 14: Midwest cheese makers are seeing decent demand for commodity cheese in both retail and foodservice markets. Most varieties of cheese are moving well through regular contracts. However, cheese with any irregularity or age is a lot harder to move. Manufacturers are running their facilities at or just below capacity. Some manufacturers are looking for additional loads of milk to round out cheese production. Spot loads of milk are a little harder to find and cheese makers need to reach further out of the region to find the extra milk. Although milk components are increasing, a few processors are fortifying the cheese make process to improve yields.

Wholesale prices delivered, dollars per/lb: Process 5# Loaf: $1.7275 - $2.0875Brick/Muens 5# Loaf: $2.0775 - $2.5025 Cheddar 40# Block: $1.8050 - $2.2000Monterey Jack 10#: $2.0525 - $2.2575 Blue 5# Loaf: $2.3450 - $3.3325Mozzarella 5-6# (LMPS): $1.8775 - $2.8175 Grade A Swiss 6-9#: $2.4350 - $2.5525

WEST - SEPT. 14: Western cheese makers report no problems finding milk available for processing needs. Manufacturers are seeking out a few extra spot loads of milk to fill up pro-duction runs. Cheese production is steady and facilities are running at or near full capacity. Cheese marketers suggest inventories are a bit long for American and Italian cheeses. How-ever, industry contacts feel these stocks will be drawn down in the next few months. A few industry contacts note a growing buyer interest for retail cheese. Domestic cheese demand is stable for most cheese varieties.

Wholesale prices delivered, dollars per/lb: Process 5# Loaf: $1.7425 - $2.0000Cheddar 40# Block: $1.8100 - $2.3550 Cheddar 10# Cuts: $1.9900 - $2.2100Monterey Jack 10#: $2.0000 - $2.1600 Grade A Swiss 6-9#: $2.4950 - $2.9250

FOREIGN -TYPE CHEESE - SEPT. 14: In Europe, sliced cheese availability con-tinues to be tight. Many manufacturers have allocated or reduced deliveries. There are low stocks in aging programs. This tight supply situation is expected to continue in the immedi-ate future. Prices continue to rise. With significant overcharges, it is possible for buyers to obtain short-run quantities. Domestic demand in Europe remains strong. In the US, whole-sale domestic Blue, Gorgonzola, Parmesan and Romano cheese prices increased $0.0125 following lower weekly average CME Group block prices..

Selling prices, delivered, dollars per/lb: Imported DomesticBlue: $2.6400 - 5.2300 $2.2725 - 3.7600Gorgonzola: $3.6900 - 5.7400 $2.7800 - 3.4975Parmesan (Italy): 0 $3.6625 - 5.7525Romano (Cows Milk): 0 $3.4625 - 5.6125Sardo Romano (Argentine): $2.8500 - 4.7800 0Reggianito (Argentine): $3.2900 - 4.7800 0Jarlsberg (Brand): $2.9500 - 6.4500 0Swiss Cuts Switzerland: 0 $2.9550- 3.2775Swiss Cuts Finnish: $2.6700- 2.9300 0

NATIONAL - SEPT. 9: Butter produc-tion is increasing in the East, as cream is more available. In the Central region, butter churning is mixed. Some processors report having enough cream volumes and are run-ning operations at full capacity. However, cream supplies are very tight in a few pro-cessing plants as cream continues clear-ing into Class II and Class III. Microfixing is active. In the West, butter production is steady. A few processors continue to sell cream in lieu of churning. Nationwide, manu-facturers are focusing on filling current print orders, as the domestic demand is strong.

NORTHEAST - SEPT. 14: Churning output levels in the region are rather steady this week. Some butter manufacturers con-tinue to draw down bulk butter inventories and microfix to cover their existing needs. Currently, active demand results from retail markets, as foodservice orders and restau-rant interest ease with the end of the sum-mer vacation season. Fourth quarter needs are at the forefront of some production runs, as manufacturers look to increase stocks for year-end customer orders.

CENTRAL - SEPT. 14: Butter manu-facturing is uneven throughout the Central region. The churning activity is lower in a few processing plants as cream supplies fluctuate. Meanwhile, some manufacturers are producing butter at sufficient levels with comfortable cream volumes. Processors are

expecting to increase butter production in order to meet the anticipated high demand for Q4. Some manufacturers are reducing bulk butter inventories as they microfix exist-ing stocks to fill current print butter orders. Print butter inventories are steady to build-ing. Demands from many retail channels and restaurants are strong. Bulk butter prices reported ranged from one cent under market to 8 cents over the market, with various peri-ods and averages used. The average adver-tised price for a 1-pound package of butter is $3.29, $0.55 below one week ago, but $0.32 higher than one year ago.

WEST - SEPT. 14: Western butter pro-duction is steady in advance of the fall butter season. Butter is moving well through existing contracts and buyers are placing orders for their Q4 holiday butter needs. Some industry contacts say they are starting to see a little seasonal uptick in retail butter sales. Pro-cessors are not having any difficulty finding available cream. A few manufacturers report comfortable butter inventories and a willing-ness to sell off milkfat as opposed to churning. Butter inventories across the industry vary from long to committed. The US weighted average advertised price of 1-pound butter is $3.29, down $.55 from last week. The US weighted average price was $2.97 one year ago. In the Southwest, the weighted average advertised price of 1-pound butter is $4.07, with a price range of $2.99-$5.49. In the Northwest, the average advertised price of 1-pound butter is $3.52.

ORGANIC DAIRY - RETAIL OVERVIEW

Advertisements for conventional ice cream in 48- to 64-ounce containers increased 34% and the national weighted average advertised price is $3.10. Organic ice cream averaged $4.00, an organic price premium of $.90. The national average price for 1-pound conventional but-ter is $3.64, while 1-pound organic butter is $5.05, an organic price premium of $1.41. Total conventional butter ads increased 44% while total organic butter ads increased 75%. The US advertised price for 8-ounce conventional cheese blocks averaged $2.40, while 8-ounce organic block cheese averaged $3.21, an organic price premium of $.81. Ads for conventional 8-ounce shred cheese averaged $2.39 while 8-ounce organic shred cheese averaged $3.21, an organic price premium of $.82. The number of conventional cheese ads decreased 5%, while organic cheese ads increased 46% this week. The price premium of the organic half gallon milk price over the conventional half gallon milk price is $1.93. This represents the dif-ference between the national weighted average price for organic, $3.70, and conventional, $1.77. Organic milk advertisements decreased by 23%.

National Weighted Retail Avg Price: Cheese 8 oz block: $3.21Cheese 8 oz shred: $3.21Cottage Cheese 16 oz: $2.99Greek Yogurt 4-6 oz: $1.08Greek Yogurt 32 oz: $4.49

Yogurt 4-6 oz: $0.99Butter 1 lb: $5.05Ice Cream 48-64oz: $4.00Milk gallon: $5.25Milk ½ gallon: $3.70Milk 8 oz UHT $1.02

RETAIL PRICES - CONVENTIONAL DAIRY - SEPTEMBER 16Commodity

Butter 1#

Cheese 8 oz block

Cheese 1# block

Cheese 2# block

Cheese 8 oz shred

Cheese 1# shred

Cottage Cheese

Cream Cheese

Ice Cream 48-64 oz

Flavored Milk ½ gallon

Flavored Milk gallon

Milk ½ gallon

Milk gallon

Sour Cream 16 oz

Yogurt (Greek) 4-6 oz

Yogurt (Greek) 32 oz

Yogurt 4-6 oz

Yogurt 32 oz

US NE SE MID SC SW NW

3.64 3.53 3.61 3.08 3.40 4.40 3.79

2.40 2.17 2.45 1.83 2.16 2.58 2.91

3.68 4.61 3.50 3.40 3.50 3.11 3.90

6.43 NA NA NA 4.99 6.84 6.09

2.39 2.26 2.40 2.16 2.47 2.38 2.84

3.62 3.49 3.50 3.40 3.50 3.76 3.90

1.85 1.98 1.61 1.50 2.21 1.77 2.01

2.04 1.91 2.35 1.68 1.90 1.75 2.28

3.10 2.72 3.09 3.20 3.61 3.15 3.17

1.91 NA NA 1.70 NA NA 3.49

2.82 NA NA NA 2.69 2.99 NA

1.77 NA NA 1.77 NA NA NA

2.71 3.69 2.62 1.94 2.99 NA 1.99

1.70 1.68 1.81 1.62 1.73 1.68 1.66

.95 .95 .97 1.01 .90 .95 .90

4.58 4.85 4.52 3.99 4.19 4.69 3.00

.50 .53 .55 .41 .40 .49 .37

2.50 2.58 2.79 1.95 2.50 2.49 NA

Butter 1# 3.64 3.53 3.61 3.08 3.40 4.40 3.79

Cheese 1# block 3.68 4.61 3.50 3.40 3.50 3.11 3.90

Cheese 8 oz shred 2.39 2.26 2.40 2.16 2.47 2.38 2.84

Cottage Cheese 1.85 1.98 1.61 1.50 2.21 1.77 2.01

Ice Cream 48-64 oz 3.10 2.72 3.09 3.20 3.61 3.15 3.17

Flavored Milk gallon 2.82 NA NA NA 2.69 2.99 NA

Milk gallon 2.71 3.69 2.62 1.94 2.99 NA 1.99

Yogurt (Greek) 4-6 oz .95 .95 .97 1.01 .90 .95 .90

Yogurt 4-6 oz .50 .53 .55 .41 .40 .49 .37

US: National Northeast (NE): CT, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VT;Southeast (SE): AL, FL, GA, MD, NC, SC, TN, VA, WV; Midwest (MID): IA, IL, IN, KY, MI, MN, ND, NE, OH, SD, WI; South Central (SC): AK, CO, KS, LA, MO, NM, OK, TX; Southwest (SW): AZ, CA, NV, UT; Northwest (NW): ID, MT, OR, WA, WY

NATIONAL - CONENTIONAL DAIRY PRODUCTS

WHOLESALE BUTTER MARKETS

NDM - CENTRAL: NDM production is ongoing, as Class I needs continue to pull available milk supplies. Production is well below capacity for most plants. Buyers’ spot interest is relaxed this week, with limited activity taking place. Interest in contracting is active, with sales reducing the availability of inventories. Resale mar-ket transactions are increasing for buyers needing smaller loads. The market under-tone remains firm. High heat nonfat dry milk prices are unchanged. Production is steady to marginally higher as the need for high heat nonfat dry milk increases seasonally. Inventories are adequate for customer needs.

NDM - EAST: Some sources report declines in low/medium heat NDM ship-ments this week. While activity is light to moderate, there are manufacturers who project that customer orders could reflect a bump in pricing, while they suggest current NDM inventories are “practically sold out” due to end-of-year and the 2017 Q1 sales volumes moving higher. Some brokers have taken exception to that and current prices, while prepared to wait-and-see through what some consider a short-lived market event. The low/medium NDM

market undertone is unsettled as prices continue to firm.

NDM - WEST: Western f.o.b. spot prices for low/medium NDM are mixed on the range, but higher on the mostly series. The market undertone is firmer. Compared to the previous week, sales volumes in the spot market are slightly higher. According to industry participants, some buyers/end users want to settle Q4 contracts in antici-pation of prices going higher. Some NDM manufacturers are not hesitant to hold stocks, expecting better prices in the next few weeks. NDM sales into cheese plants for fortification purposes are active. In addition, demand from bakers is improving as the fall baking season approaches. The availability of condensed skim volumes for drying is increasing, as the requests from ice cream manufacturers are lower. Consequently, low/medium heat NDM pro-cessing is steady to higher. Inventories are mixed throughout the West. F.O.B. spot prices for high heat nonfat dry milk shifted higher on the bottom of the range, but held steady on the top. Production is sporadic, based on contracts. Inventories are very tight. Thus, trading activity in the spot mar-ket is limited.

DRY DAIRY PRODUCTS - SEPTEMBER 15


CME CASH PRICES - SEPTEMBER 12 - 16, 2016Visit www.cheesereporter.com for daily prices

CHEDDAR CHEDDAR AA GRADE A 500-LB. BARRELS 40-LB. BLOCKS BUTTER NFDM

MONDAY $1.5700 $1.6500 $2.0325 $0.9050 September 12 (-3½) (-6) (NC) (NC)

TUESDAY $1.5500 $1.6650 $2.0325 $0.9050 September 13 (-2) (+1½) (NC) (NC)

WEDNESDAY $1.5275 $1.6700 $2.0100 $0.9050 September 14 (-2¼) (+½) (-2¼) (NC)

THURSDAY $1.5200 $1.6700 $2.0050 $0.9075 September 15 (-¾) (NC) (-½) (+¼)

FRIDAY $1.4800 $1.6500 $2.0000 $0.9100 September 16 (-4) (-2) (-½) (+¼)

Week’s AVG $1.5295 $1.6610 $2.0160 $0.9065 Change (-0.1049) (-0.0465) (-0.0190) (+0.0021)

Last Week’s $1.6344 $1.7075 $2.0350 $0.9044AVG

2015 AVG $1.5530 $1.6695 2.6370 $0.8950 Same Week

MARKET OPINION - CHEESE REPORTER

WHEY MARKETS - SEPTEMBER 12 - 16, 2016RELEASE DATE - SEPTEMBER 15, 2016

Animal Feed Whey—Central: Milk Replacer: .2250(NC) – .2750 (NC)

Buttermilk Powder: Central & East: .8300 (+2) – .8900 (NC) West: .8000 (+2) – .9200 (+3) Mostly: .8200 (NC) – .8700 (+2)

Casein: Rennet: $3.0250 (+1½) – $3.0700 (NC) Casein: Acid: $3.0400 (+½) – $3.1000 (NC)

Dry Whey Powder—Central (Edible): Nonhygroscopic: .2550 (NC) – .4000 (+2) Mostly: .2750 (NC) – .3350 (NC)

Dry Whey–West (Edible): Nonhygroscopic: .2850 (NC) – .4000 (+2) Mostly: .3000 (NC) – .3450 (+½) Dry Whey—NE: .3000 (NC) – .3450 (+1)

Lactose—Central and West: Edible: .2300 (NC) – .4050 (NC) Mostly: .2800 (NC) – .3650 (+½) Nonfat Dry Milk —Central & East: Low/Medium Heat: .8400 (-1) – . 9700 (+1) Mostly: .9000(+2) – .9400 (+2) High Heat: .9800 (NC) - 1.0700 (NC) Nonfat Dry Milk —Western: Low/Medium Heat: .8400 (-¼) – .9800 (+3) Mostly: .9050 (+1½) –.9350 (+½) High Heat: .9500 (+2) – 1.0600 (NC)

California Weighted Average NFDM: Price Total Sales September 9 $0.8612 9,688,100 September 2 $0.8460 10,962,954

Whey Protein Concentrate—Central and West: Edible 34% Protein: .6000 (+½) – .8750 (NC) Mostly: .6700 (NC) – .7850 (+½)

Whole Milk—National: 1.2900 (NC) – 1.3500 (NC)

Cheese Comment: Monday’s block market activity was limited to an uncovered offer of 1 car at $1.6500, which reduced the price. On Tuesday, the only block market activity was an unfilled bid for 1 car at $1.6650, which raised the price. Five cars of blocks were sold Wednesday, the last on a bid at $1.6700, which raised the price.On Thursday, 5 cars of blocks were sold, all on offers at $1.6700, which left the price unchanged. Four cars of blocks were sold Friday, all on offers, the last 3 at $1.6500, which reduced the price. The barrel price declined Monday on a bid-based sale of 1 car at $1.5700, fell Tuesday on bid-based sales of 2 cars at $1.5500, dropped Wednesday on an offer-based sale of 1 car at $1.5275, fell Thursday on an offer-based sale of 1 car at $1.5200, and fell Friday on bid-based sales of 3 cars at $1.4800.

Butter Comment: The butter price fell Wednesday on a bid-based sale of 1 car at $2.0100, declined Thursday on a bid-based sale of 1 car at $2.0050, and fell Friday on an offer-based sale of 1 car at $2.0000.

For more information, circle # 33 on the Reader Response Card on p. 14

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Forecasts Mixed(Continued from p. 1)

record output. For 2017, USDA is now projecting that milk pro-duction will total 216.1 billion pounds, up 300 million pounds from last month’s forecast.

Fat-basis dairy exports are raised for 2016 and 2017. For 2016, cheese and cream exports have remained firm, and strength in whole milk powder exports is expected to carry into 2017. On a skim-solids basis, the export forecasts for 2016 and 2017 are raised on higher whole milk powder and whey sales.

Cheese and butter price forecasts are lowered for 2016 and 2017 as supplies remain high, but prices for nonfat dry milk and dry whey are forecast higher as the global supply tightens and demand strengthens.

USDA’s price projections as of this week are as follows: Cheese: $1.6000 to $1.6200

per pound in 2016 and $1.6050 to $1.7050 per pound in 2017. Butter: $2.0800 to $2.1200

per pound in 2016 and $1.9550 to $2.0850 per pound in 2017. Dry whey: 26.0 to 28.0 cents

per pound this year and 29.5 to 32.5 cents per pound next year. Nonfat dry milk: 82.0 to 83.0

cents per pound this year and 89.0 to 96.0 cents per pound next year.

The Class III price forecast is lowered for both 2016 and 2017

as the reduction in the cheese price more than offsets the dry whey price increase. USDA now expects the Class III price to aver-age $14.75 to $14.95 per hundred-weight this year and $14.95 to $15.95 per hundred in 2017. The Class III price averaged $15.80 per hundred in 2015.

The Class IV price forecast is lowered for 2016, to $13.65 to $13.95 per hundred, as the lower butter price more than offsets the higher nonfat dry milk price, but is raised for 2017, to $13.80 to $14.90 per hundred, as higher non-fat dry milk prices more than offset the lower butter price forecast. The Class IV price averaged $14.35 per hundred in 2015.

The all milk price is fore-cast lower this year, at $16.10 to $16.30 per hundred, but for 2017 is unchanged from last month, at $16.15 to $17.15 per hundred.

The 2016/17 corn price fore-cast is $1.90 to 43.50 per bushel, a five-cent increase on both ends of the range from last month’s fore-cast. The 2016/17 soybean meal price forecast is $300 to $340 per short ton, a decrease of $5 on both ends of the range,ERS said in its monthly “Livestock, Dairy, and Poultry Outlook.”

The national average price for alfalfa hay decreased from $142 per short ton in June to $140 in July, $32 lower than July 2015.

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