W o r l d ' s DairyI t h W S l y CHEESE REPORTER 23, 2017.pdf · missioner should grant its petition. First, the petition says imple-mentation of the Nutrition Facts final rule is

WI Idea Dairy Summit Examines Challenges, Opportunities Facing State’s Dairy Industry

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CHEESE REPORTER

Petition Asks FDA To Shelve Final Nutrition Facts Food Labeling Rule

Vol. 142, No. 1 • Friday, June 23, 2017 • Madison, Wisconsin

Washington—The Natural Prod-ucts Association (NPA) on Mon-day filed a formal petition asking the US Food and Drug Adminis-tration (FDA) to stay and recon-sider its final rules revising the Nutrition Facts and Supplement Facts labels.

NPA, which represents the nat-ural products industry, is specifi-cally requesting that the following actions take place: That the FDA commissioner

stay the effective date of the food labeling rule (July 26, 2016), pend-ing reconsideration of the final rule based upon its merits, and a full economic impact analysis to industry with a focus on small busi-ness in particular. That the FDA commissioner

reconsider the food labeling final rule and direct FDA staff to com-mence a new rulemaking under the Administrative Procedures Act (APA).

The petition arises out of the “much contested history” by FDA to make wholesale changes (pro-posed, supplemental proposed, and final rules) to the Nutrition Facts and Supplement Facts labels

“without any statutory direction from Congress or need borne out of consumer studies,” the petition stated.

NPA and its member companies sought common sense approaches to FDA’s proposed and supplemen-tal proposed rules on changing the Nutrition Facts and Supplement Facts labels, but the food label-ing final rule “largely ignored the errors pointed out by NPA.” Not surprisingly, the food labeling final rule “has met with stiff resistance,” according to the petition.

In its petition, NPA cites sev-eral reasons that the FDA com-missioner should grant its petition.

First, the petition says imple-mentation of the Nutrition Facts final rule is inconsistent with the Trump administration’s regulatory agenda and directives. The food labeling final rule is “exactly the kind of regulation” that the new administration has opposed and/or halted since January 20, 2017, through various presidential actions. NPA believes the food labeling final rule “falls squarely within the category of regulations disfavored” by the administration:

those that are “unduly burdensome and costly, and do not provide commensurate benefits.”

Further, the food labeling final rule presents “serious issues” with respect to First Amendment pro-tections for commercial speech, the petition stated. It is unclear how requiring new nutrition informa-tion (e.g., added sugars) prevents deception of consumers when declaration of both total carbohy-drates and total sugars have been required on conventional food and dietary supplement labels.

“FDA would have to have empirical evidence to suggest that consumers are routinely being mis-led about the nutritional compo-sition in conventional foods and dietary supplements, but NPA is aware of no such evidence to sup-port that claim,” the petition said.

Inclusion of a Daily Value (DV) for added sugar in the final rule but not in the proposed rule was an example of an impulsive behavior to hastily circumvent the public rulemaking process, according to the petition. Based on the evi-dence presented in the final report • See Petition Asks FDA, p. 16

08 09 10 11 12 13 14 15 16 17$3.00

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Average Retail PricesWhole Milk PriceMay 2008 – 2017 Price per pound

US Milk Production Rose 1.8% In May Despite Declines In California, Wisconsin, And IdahoWashington—US milk produc-tion in the 23 reporting states during May totaled 17.752 billion pounds, up 1.8 percent from May 2016, USDA’s National Agricul-tural Statistics Service (NASS) reported Monday.

April’s milk production esti-mate was revised up by 36 million pounds, so April output in the 23 reporting states was up 2.2 percent from April 2016, rather than up 2.0 percent as initially estimated.

Production per cow in the 23 reporting states averaged 2,035 pounds for May, 16 pounds above May 2016.

The number of milk cows on farms in the 23 reporting states in May was 8.722 million head, 81,000 head more than in May 2016 and 2,000 head more than in April 2017.

For the entire US, May milk production totaled 18.94 billion pounds, up 1.8 percent from May 2016. Production per cow in the US averaged 2,016 pounds for May, 19 pounds above May 2016. The number of milk cows on farms in the US in May was 9.393 mil-lion head, 71,000 head more than May 2016 and 2,000 head more than April 2017.

California’s May milk produc-tion totaled 3.515 billion pounds, down 1.1 percent from May 2016, due to 11,000 fewer milk cows and 10 less pounds of milk per cow. California’s April milk output had also been down 1.1 percent from a year earlier.

• See May Milk Output Up, p. 6

Wisconsin State Fair Cheese & Butter Contest Winners Named; Auction Scheduled For Aug. 10West Allis, WI—First, second and third place award winners in the Wisconsin State Fair Cheese & Butter Contest were announced today.

Dairy companies from around the state submitted more than 400 cheese and butter entries. Contest judging took place here Thursday. The 2017 Grand Master Cheese-maker, along with this year’s other winning cheese and butter makers, will be recognized during the Blue Ribbon Cheese & Butter Auction here Thursday, Aug. 10.

The auction, which features the sale of blue-ribbon entries, is a fund-raiser for the Wisconsin State Fair Dairy Promotion Board. Auction proceeds fun scholarships• See Wisconsin State Fair, p. 7

Madison—A Wisconsin Idea Dairy Summit held here Monday examined challenges and oppor-tunities facing the state’s dairy industry and what the industry of the future should look like.

“We are truly finding our-selves in a world marketplace that affects the dairy industry,” said Ben Brancel, secretary of the Wisconsin Department of Agri-culture, Trade and Consumer Protection (WDATCP).

In the future, not only will Wis-consin be America’s Dairyland, but Brancel has a “strong inkling we will be the World’s Dairyland. And we have that opportunity to take that challenge on.”

Keynote speaker Mark Ste-phenson, of the Center for Dairy Profitability at the University of Wisconsin-Madison, listed three “shards of truth” that are pieces

of a much bigger puzzle impact-ing Wisconsin’s dairy industry, including regional changes in milk production; the US “signifi-cantly” entering the world dairy trade picture, which has altered the texture of the way products move; and dairy policies in the US and the rest of the world that impact milk prices and move-ments of milk in the US.

Milk production is growing in some regions and is taxing plant capacity, and this “loose milk” that’s coming from other states, such as Michigan, is putting dow-nard pressure on milk prices, Ste-phenson said.

Meanwhile, milk production is declining in some other regions, such as the Southeast, and is leav-ing behind excess plant capac-ity, and it might be leading to • See WI Dairy Summit, p. 8

CHEESE REPORTERPage 2 June 23, 2017

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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

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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 3579 requested. Periodicals postage paid at Madison, WI. Address all correspondence to: Cheese Reporter, 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-7972

So what was it that lead to the launching of the modern era of the dairy futures? Basically, it was Ched-dar cheese and nonfat dry milk price volatility.

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

After 24 Years, Dairy Futures Are A Real Success Story

D I C K G R O V E S

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

EDITORIAL COMMENT

Last week, the CME Group posted an infographic on its website that detailed the records being set by the dairy futures and options con-tracts offered by the CME.

Among other things, the CME Group reported that combined futures and options ADV (aver-age daily volume) is up 30 percent year over year to over 5,000 con-tracts per day; dairy options had 69 record open interest days dur-ing the first five months of 2017; and open interest on dairy futures and options at the end of May was 239,040 contracts, up 13 percent year over year.

Coincidentally, last week also marked the 24th anniversary of the launching of the “modern” era of dairy futures. It was back on June 15, 1993, that the New York-based Coffee, Sugar & Cocoa Exchange launched Cheddar cheese and non-fat dry milk futures in the CSCE’s sugar futures and options rings. The CSCE began trading options on Cheddar cheese and nonfat dry milk futures a week later.

We refer to that launch as the beginning of the “modern” futures era because dairy futures trading actually had a long history before fading away (temporarily). Here’s how the CME Group itself puts it: “We have a rich history stem-ming from the grain merchants who founded the Chicago Board of Trade in 1848, the dairy mer-chants who founded the New York Mercantile Exchange in 1872, and the butter and egg merchants who founded the Chicago Mercantile Exchange in 1898.”

In 1898, it was actually the Chi-cago Butter and Egg Board, prede-cessor of the CME, that opened in Chicago. The Chicago Butter and Egg Board became the Chicago Mercantile Exchange in 1919.

Both butter and cheese futures were traded on the CME for a number of years. Butter futures were traded at the CME from 1919 to 1976 (volume peaked at 35,343 contracts in 1930), while cheese futures were traded for several years up until the early 1940s.

So what was it that lead to the launching of the modern era of the dairy futures? Basically, it was Cheddar cheese and nonfat dry milk price volatility.

Back in the 1980s, price volatil-ity was pretty much unheard of in the dairy industry, thanks in large part to the large government pur-chases and stocks of cheese, but-ter and nonfat dry milk under the dairy price support program.

In 1983, for example, at the old National Cheese Exchange in Green Bay, WI, the price (“market opinion”) for 40-pound Cheddar blocks increased three-quarters of a cent on January 14th, to $1.3600 a pound, and remained at that level for more than nine months (the NCE traded just once a week, on Friday mornings), finally “jump-ing” to $1.3650 on September 16th. Later that year, there were two more price changes for blocks, bringing the total to four for all of 1983. That’s pretty much the opposite of a “volatile” market.

But the dairy industry did even-tually become more market-ori-ented (despite the price support program remaining in place until 2014), and price volatility started to increase. In 1989, for example, there were more than 20 changes in the block Cheddar price at the NCE, and the price ranged from a low of $1.1775 per pound to a then-record high of $1.5450 per pound. There were more than 30 changes in the block price the fol-lowing year.

Against that backdrop of increas-ing price volatility and a pretty big market (among other factors), the CSCE decided to launch Cheddar cheese and nonfat dry milk futures and options in June of 1993. And things have really, really changed since then in the dairy futures and options world.

For example, Cheddar cheese and nonfat dry milk futures con-tracts originally traded from 2:15 to 3:15 Eastern time every day at the CSCE, with trading taking place in the CSCE’s sugar futures and options rings. Today, the

CME’s dairy futures and options trade almost 24 hours per day, and more and more of that trading is being done electronically.

As noted earlier, the modern era of the dairy futures was launched at the New York-based CSCE, and the initial contracts were Ched-dar cheese and nonfat dry milk. Today, dairy futures are traded at the CME, and futures and options available include cheese, butter, nonfat dry milk, dry whey, Class III milk and Class IV milk.

Also, those original CSCE con-tracts were for delivered products; the Cheddar futures contract, for example, called for 40,000 pounds of 40-pound Cheddar blocks deliv-ered FOB anywhere in the conti-nental US. Today, all of the CME’s dairy futures are cash-settled.

Initially, it was just the CSCE that was involved in the modern era of dairy futures and options trading. The CME’s initial involvement in the modern era of dairy futures was a fluid milk con-tract, launched in January of 1996 (about a month after the CSCE launched a fluid milk contract).

Today, not only does the CME offer a variety of dairy futures and options contracts, but New Zea-land’s NZX offers several futures and options contracts (whole and skim milk powder, butter, anhy-drous milkfat and milk solids), and two European exchanges, Euron-ext and the European Energy Exchange, offer dairy futures (spe-cifically, butter, skim milk powder and whey powder).

Finally, and most impressively, the volume of dairy futures and options trading has increased phe-nomenally since 1993. On October 4, 1993, the CSCE reported that trading in Cheddar cheese futures totaled 459 contracts; Cheddar options volume closed at 174 puts and calls. NDM futures traded 812 contracts to date, while options on NDM traded 255 puts and calls.

The latest statistics from the CME Group indicate that, 24 years after they were launched, dairy futures are an amazing success.

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Global Dairy Trade Price Index Declines 0.8%; Prices Fall For Four Of Seven Products TradedFirst Decrease In GDT Price Index Since First Auction In MarchAuckland, New Zealand—The price index on this week’s semi-monthly Global Dairy Trade (GDT) dairy commodity auction declined 0.8 percent from the pre-vious auction, held two weeks ago.

That was the first decline in the GDT price index since the first auction in March. Increases since then ranged from 0.6 percent in June’s first auction to 3.6 percent in May’s first auction.

In this week’s auction, which featured 160 participating bidders and 111 winning bidders, prices were higher for skim milk powder, butter and anhydrous milkfat and lower for Cheddar cheese, whole milk powder, rennet casein and lactose. Buttermilk powder was not offered on this week’s auction.

Results from this week’s GDT auction, with comparisons to the auction held two weeks ago, were as follows:

Cheddar cheese: The average winning price was $4,121 per met-ric ton ($1.87 per pound), down 3.8 percent. Average winning prices were: Contract 1 (July), $4,117 per ton, down 6.7 percent; Contract 3 (September), $4,088 per ton, down 5.4 percent; Con-tract 4 (October), $4,148 per ton, down 1.9 percent; and Contract 5 (November), $4,145 per ton, up 1.6 percent.

Skim milk powder: The aver-age winning price was $2,218 per ton ($1.01 per pound), up 1.4 per-cent. Average winning prices were: Contract 1, $2,268 per ton, up 1.6 percent; Contract 2 (August), $2,150 per ton, down 0.6 percent; Contract 3, $2,251 per ton, up 1.9 percent; Contract 4, $2,239 per

ton, up 2.6 percent; and Contract 5, $2,284 per ton, up 3.5 percent.

Whole milk powder: The aver-age winning price was $3,022 per ton ($1.37 per pound), down 3.3 percent. Average winning prices were: Contract 1, $2,957 per ton, down 6.5 perccent; Contract 2, $2,946 per ton, down 5.6 percent; Contract 3, $3,042 per ton, down 4.5 percent; Contract 4, $3,109 per ton, down 1 percent; and Contract 5, $3,073 per ton, up 1.7 percent.

Butter: The average winning price was $5,768 per ton ($2.62 per pound), up 2.9 percent. Aver-age winning prices were: Contract 1, $5,960 per ton, down 5.7 per-cent; Contract 2, $6,030 per ton, up 1.9 percent; Contract 3, $6,050 per ton, up 4.9 percent; Contract 4, $5,590 per ton, up 4.4 percent; and Contract 5, $5,455 per ton, up 2.1 percent.

Anhydrous milkfat: The aver-age winning price was $6,885 per ton ($3.12 per pound), up 4.4 percent. Average winning prices were: Contract 1, $7,024 per ton, up 2.6 percent; Contract 2, $7,019 per ton, up 4.2 percent; Contract 3, $6,980 per ton, up 6.1 percent; Contract 4, $6,785 per ton, up 5.5 percent; and Contract 5, $6,480 per ton, up 2 percent.

Rennet casein: The average winning price was $6,104 per ton ($2.77 per pound), down 8 percent. Average winning prices were: Contract 1, $6,815 per ton, down 14.4 percent; Contract 2, $6,249 per ton, down 1.5 percent; Contract 3, $5,865 per ton, down 2.8 percent; Contract 4, $6,063 per ton, down 12.7 percent; and Con-tract 5, $5,855 per ton, down 19.7 percent.

Lactose: The average winning price was $869 per ton (39.4 cents per pound), down 11.1 percent. That was for Contract 2.


from our archives

50 YEARS AGOJune 23, 1967: Madison—Five million pounds of colored oleo will enter Wisconsin with the July 1 repeal of the colored oleo ban, tax stamp sales indicated this week. Sale of five million five-and-a-quarter-cent stamps has already brought more than $250,000 to the state treasury.

Washington—As the result of a US Supreme Court decision, FDA inspectors will have to obtain search warrants in order to enter dairy and other manu-facturing plants if management consent is withheld. To deny access to an inspector with a search warrant would constitute a criminal offense.

25 YEARS AGOJune 19, 1992: Washing-ton—The US government has determined that Swiss cheese imported from Switzerland is being subsidized by that coun-try’s government and is unfairly undercutting the price of US-produced Swiss cheese, US Ag Secretary Edward Madigan announced this week.

Washington—After much antic-ipation, President Bush this week formally rejected a petition that would have granted duty-free status for imported Goya cheese under the Generalized System of Preferences trade program. The Hungarian Goya cheese peti-tion was opposed by a number of industry organizations, includ-ing WCMA/USCMA, National Milk Producers Federation, AMPI and the Farmers Union Milk Marketing Cooperative.

10 YEARS AGOJune 22, 2007: Potsdam, Ger-many—A key meeting of the World Trade Organization’s four most powerful members has failed, officials said this week, dealing what is being called a major setback to efforts at reach-ing a new global trade agree-ment. Brazil and India criticized the US for its failure to offer deep enough cuts in the subsi-dies it pays to farmers.

Elkhart Lake, WI—Mike Sipple, vice president of cheese operations at Trega Foods, Little Chute, WI, was elected president of the Wis-consin Cheese Makers Association here this week. Sipple succeeds Jeff Wideman of Maple Leaf Cheese, Monroe, WI, who had served as WCMA president for the last two years.

Milk Prices Will Depend On Output LevelDairy Situation & Outlook by Bob Cropp

Dr. Bob Cropp is a Professor Emeritus at the

University of Wisconsin-Madison

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Milk prices bottomed out in April. The Class III price was $16.33 in January and fell to $15.22 in April. The May Class III was $15.57 and June could be near $16.40. The Class IV price was $16.19 in Janu-ary and fell to $14.01 in April. The May Class IV price was $14.49 and June could be near $16.00.

For the first five months of the year the Class III price averaged $2.52 higher than last year and the Class IV price averaged $1.86 higher. Milk prices are expected to continue to increase and peak out in October or November.

Cheese prices have remained surprisingly strong considering the level of milk production, cheese production and higher stocks lev-els.

For April Cheddar cheese pro-duction was 4.8 percent higher than the year before with total cheese production 3.7 percent higher. April 30th stocks of cheese were 10.1 percent higher than the year before.

However, on the CME cheese prices showed some weakness in recent trades. In May 40-pound blocks averaged $1.6264 per pound, started June at $1.7375 and are now $1.5975.

Cheddar barrels started June at $1.5325 per pound and are now $1.35.

The normal spread between blocks and barrels is around four cents but has averaged 22 cents in June. Barrels are long in com-parison to blocks depressing bar-rel prices. This wide spread should correct itself as we move into sum-mer.

CME butter averaged $2.2684 per pound in May, and has ranged from $2.41 to $2.7050 in June with the price now at $2.56. April butter production was 4.1 percent lower than a year ago and April 30th stocks were 1.2 per-cent lower.

The dry whey price has weak-ened slightly to around $0.46 per pound. Nonfat dry milk averaged $0.88 per pound in May and ranged from $0.90 to $0.9475 in June

with the current price at $0.905. Cheese, butter, dry whey and non-fat dry milk prices are all expected to improve this summer and fall which will push milk prices up.

Improved exports have sup-ported higher cheese, butter, dry whey and nonfat dry milk prices. In April, US dairy export volume was higher than year-ago-levels for the 11th straight month.

Compared to a year ago exports to the top 10 markets showed exports up 91 percent to China, 84 percent to Oceania, 69 percent to Japan, 59 percent to South Korea, 43 percent to South America, 23 percent to Southeast Asia, 9 per-cent to Mexico and 2 percent to Canada, but 3 percent lower to the Caribbean and 16 percent lower to the Middle East/North Africa.

Exports were 9 percent higher for nonfat dry milk/skim milk pow-der, 27 percent for cheese, 30 per-cent for butterfat, 11 percent for whey products and 9 percent for lactose.

Dairy product prices on the Global Dairy Trade keep on strengthening and making US products more price competitive.

Exports are expected to con-tinue to show improvement. World demand is expected to be stronger and increases in world milk pro-duction to be modest.

Milk production had been run-ning lower in major exporters—EU, New Zealand, Australia and Argentina.

Milk production may start to run above year ago levels by summer and fall in both EU and New Zea-land, but stronger world demand could absorb the increase.

The level of milk production will be a major factor on how much milk prices strengthen. If the growth in milk production is 2 percent or less, along with favor-able domestic sales and continued improved exports the Class III price could be in the mid $16’s by July, assuming some recovery in cheese prices, and the $17’s for the remainder of the year peaking in October in the high $17’s.

The Class IV price could be in the $17’s beginning in August and for the remaining months. However, dairy futures are cur-rently less optimistic for the Class III price. Class III futures do not reach $17’s until August and remain in the low $17’s for the remainder of the year.

USDA is forecasting 2017 milk production to be 2 percent higher than last year (2.3 percent leap year adjusted) from 0.7 percent more milk cows and 1.3 percent more milk per cow (1.6 percent leap year adjusted).

However, the increase could well be less than 2 percent and supporting higher milk prices. Wet weather is impacting forage quality both in the Northeast and Mid-west which could negatively affect increases in milk per cow in these regions.

Milk production does appear to be slowing. Compared to a year ago April milk production was up 2.2 percent, but May production was up just 1.8 percent. Milk cow numbers started to increase last October and continue to increase. May cow numbers were 0.8 per-cent higher than a year ago.

Last year a relatively strong increase in milk per cow, up 1.4 per-cent was a major factor for higher milk production. The increase in milk per cow may be slowing with May up just 1.0 percent.

May milk production compared to a year ago was down 1.1 percent for California and 0.2 percent for Idaho. California’s decline was due to both fewer cows and less milk per cow while Idaho’s decline was due to less milk per cow.

California’s milk production fell below year ago levels all of 2015 with production for the year down 3.4 percent, and fell below year ago levels for eight of the months in 2016 with production for the year down 1.0 percent.

But, other Western and South-west states are experiencing increases with May milk produc-tion up 4.8 percent in Arizona, 6.9 • See Bob Cropp, p. 11



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New FDA Website Implements Accredited Third-Party Certification Program Under FSMAWashington—The US Food and Drug Administration (FDA) this week launched a website where organizations can apply to be rec-ognized as a third-party accredita-tion body.

The launch of this website will implement the Accredited Third-Party Certification program, a vol-untary program established by the Food Safety Modernization Act (FSMA) to expand FDA’s over-sight of imported foods.

Accreditation bodies recognized by FDA will have the ability to accredit third-party certification bodies, also known as third-party auditors. In turn, the certification bodies conduct consultative and/or regulatory food safety audits, and issue certifications to eligible enti-ties that produce food for humans and animals.

Consultative audits are con-ducted to help foreign eligible enti-ties prepare for a regulatory audit. The audit is used to determine if the entity is in compliance with applicable US food safety require-ments as well as with industry stan-dards and practices. Consultative audit reports do not have to be submitted to FDA, but certifica-tion bodies must maintain records of the audit, and the records must be made available to FDA.

Regulatory audits are conducted to determine if facilities are com-plying with applicable food safety requirements under the Food, Drug, and Cosmetic Act and FDA regulations. Only the results of a regulatory audit can determine if a facility may receive certification.

The FSMA states two purposes for certifications obtained through the Accredited Third-Party Certi-fication Program: Importers can use a certifica-

tion to establish their eligibility to participate in the Voluntary Qual-ified Importer Program (VQIP). Importers who participate in VQIP receive faster review and entry of food imports. Certification through FDA’s Accredited Third-Party Certification Program is one of the eligibility criteria for partici-pation in VQIP. FDA anticipates that it will begin to accept applica-tions from importers who wish to participate in VQIP in 2018. FDA can require certifica-

tion as a condition of entry for imported food products in limited circumstances when specific, risk-based criteria are met.

Foreign governments and agen-cies or private third parties may apply to be recognized as an accreditation body. The process includes an application and user fee. For more information, visit www.access.fda.gov.

Updated Quantity-Based Trigger Levels For 2017 Cheese Imports All Higher Than 2016Washington—USDA’s Foreign Agricultural Service (FAS) this week published a notice listing the updated quantity-based trigger levels for products which may be subject to additional import duties under the safeguard provisions of the WTO Agreement on Agricul-ture.

Article 5 of the WTO Agree-ment on Agriculture provides that additional import duties may be imposed on imports of products subject to tariffication as a result of the Uruguay Round, if certain conditions are met.

The agreement permits addi-tional duties to be charged if the price of an individual shipment of imported products falls below the average price for similar goods imported during the years 1986-88 by a specified percentage. It also permits additional duties to be imposed if the volume of imports of an article exceeds the average of the most recent years for which data are available by 5, 10, or 25 percent, depending on the article.

These additional duties may not be imposed on quantities for which minimum or current access com-mitments were made during the Uruguay Round negotiations, and only one type of safeguard, price or quantity, may be applied at any given time to an article.

Quantity-based safeguard trigger levels for various cheese and other dairy products for 2017, with com-parisons to 2016, are as follows:

NSPF (not specifically pro-vided for) cheese: 128.6 million pounds, up 12.8 million pounds.

Swiss cheese with eye forma-tion: 66.2 million pounds, up 2.9 million pounds.

Cheddar cheese: 34.1 million pounds, up 9.2 million pounds.

American-type cheese: 2.0 mil-lion pounds, up 564,593 pounds.

Italian-type cheese: 47.9 mil-lion pounds, up 4.8 million pounds.

Edam and Gouda cheese: 19.3 million pounds, up 1.4 million pounds.

Blue cheese: 11.4 million pounds, up 650,151 pounds.

Gruyere process cheese: 8.5 million pounds, up 230,578 pounds.

Lowfat cheese: 619,025 pounds, up 281,723 pounds.

Butter: 48.9 million pounds, up 18.9 million pounds.

Butteroil and butter substi-tutes: 21.3 million pounds, up 8.0 million pounds.

Dried whole milk: 9.9 million pounds, up 2.4 million pounds.

Nonfat dry milk: 1.2 million pounds, up 85,593 pounds.

Evaporated or condensed milk: 4.9 million pounds, up 105,564 pounds.

Dairy mixtures: 57.5 million pounds, up 22.9 million pounds.

Dried whey/buttermilk: 42,605 pounds, up 2,570 pounds.

Dried cream: 18,302 pounds, up 17,013 pounds.

Cream: 1,426,324 liters, up 1,423,535 liters.

Ice cream: 3,206,913 liters, up 242,728 liters.

For more information about this notice, contact Souleymane Diaby, import policies and export reporting division, office of trade programs, Foreign Agricultural Service, USDA, at (202) 720-0638; or by e-mail at [email protected].

Butter Buds Food Ingredients Opens New Applications LabRacine, WI—Butter Buds Food Ingredients recently opened a new 8,000-square-foot Butter Buds® Applications Lab at its headquar-ters in Racine, WI.

The applications lab supports customers, brokers, distributors and the Butter Buds sales staff with a variety of services.

Butter Buds Food Ingredients manufactures an array of concen-trated dairy flavors made from Wis-consin butter, cheese and cream. The company also offers a line of flavor concentrates that it said pro-vide unique flavor characteristics.

The Butter Buds Applications Lab focuses on the following areas: Customer support: customer

assistance with new product devel-opment and formulation flavor challenges. Application innovation:

applications are researched, tested and refined to produce innovative, high-quality customer demonstra-tions. Sales support: custom appli-

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resources for customers, brokers, distributors and staff.

“The goal of our Butter Buds Applications Lab is to provide a creative and collaborative envi-ronment where customers and staff can explore new formulation possibilities with our applications team,” said Mike Ivey, national sales director. “We invite all of our customers to visit our application lab to work directly with our But-ter Buds food scientists.”

For details, visit www.bbuds.com; or phone (262) 598-9900.


STATE May May % Change 2016 2017 Change Cows

California 3554 3515 -1.1 -11000

Wisconsin 2641 2622 -0.7 NC

New York 1293 1323 2.3 4000

Idaho 1258 1255 -0.2 4000

Texas 928 1064 14.7 43000

Pennsylvania 957 977 2.1 -5000

Michigan 955 993 4.0 9000

Minnesota 846 868 2.6 -2000

New Mexico 680 727 6.9 18000

Washington 572 564 -1.4 -3000

Ohio 487 494 1.4 -4000

Arizona 433 454 4.8 7000

Iowa 442 448 1.4 4000

Indiana 362 370 2.2 2000

Colorado 328 352 7.3 10000

Kansas 286 297 3.8 7000

Florida 230 229 -0.4 1000

Vermont 237 239 0.8 -2000

South Dakota 218 224 2.8 3000

Oregon 230 222 -3.5 -2000

Utah 181 188 3.9 2000

Illinois 171 172 0.6 -1000

Virginia 153 155 1.3 -3000

millions of pounds 1,000 head

Milk Production by State

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16,000

16,500

17,000

17,500

18,000

18,500

19,000

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

US Milk Production2017 vs. 2016in mill ions of pounds

May Milk Output Up(Continued from p. 1)

Wisconsin’s May milk produc-tion totaled 2.622 billion pounds, down 0.7 percent from May 2016, due to unchanged milk cow num-bers but 15 less pounds of milk per cow. Wisconsin’s April milk output was revised up by 4 mil-lion pounds, so production was up 0.8 percent from April 2016, rather than up 0.6 percent as originally estimated.

May milk production in New York totaled 1.323 billion pounds, up 2.3 percent from May 2016, due to 4,000 more milk cows and 35 more pounds of milk per cow.

New York’s April milk out-put was revised up by 3 million pounds, so production was up 4.1 percent from a year earlier, rather than up 3.9 percent as initially estimated.

Idaho’s May milk production totaled 1.255 billion pounds, down 0.2 percent from May 2016, due to 4,000 more milk cows but 20 less pounds of milk per cow.

Idaho’s April milk production was revised up by 3 million pounds, so output was down 0.4 percent from April 2016, rather than down 0.7 percent as originally estimated.

May milk production in Texas totaled 1.064 billion pounds, up 14.7 percent from May 2016, due to 43,000 more milk cows and 100 more pounds of milk per cow. Texas’ April milk production had been up 12.8 percent from a year earlier.

Michigan’s May milk produc-tion totaled 993 million pounds, up 4 percent from May 2016, due to 9,000 more milk cows and 40 more pounds of milk per cow. Michigan’s April milk production was revised up by 7 million pounds, so output was up 5 percent from April 2016, rather than up 4.2 per-cent as initially estimated.

Pennsylvania’s May milk pro-duction totaled 977 million pounds, up 2.1 percent from May 2016, due to 5,000 fewer milk cows but 55 more pounds of milk per cow. Pennsylvania’s April milk output had been up 2.5 percent from a year earlier.

Minnesota’s May milk produc-tion totaled 868 million pounds, up 2.6 percent from May 2016, due to 2,000 fewer milk cows but 55 more pounds of milk per cow.

Minnesota’s April milk produc-tion was revised up by 5 million pounds, so output was up 2.6 per-cent from April 2016, rather than

up 2.0 percent as originally esti-mated.

May milk production in New Mexico totaled 727 million pounds, up 6.9 percent from May 2016, due to 18,000 more milk cows and 20 more pounds of milk per cow. New Mexico’s April milk production had been up 7.5 percent from April 2016.

Washington’s May milk produc-tion totaled 564 million pounds, down 1.4 percent from May 2016, due to 3,000 fewer milk cows and five less pounds of milk per cow. Washington’s April milk output was revised up by 2 million pounds, so production was down 2.2 per-cent from April 2016, rather than down 2.5 percent as initially esti-mated.

All told for the 23 reporting states in May, compared to May 2016, milk production was higher in 17 states, with those production increases ranging from 0.6 percent in Illinois to 14.7 percent in Texas; and lower in six states, with those production declines ranging from

0.2 percent in Idaho to 3.5 percent in Oregon.

Also in May, compared to May 2016, milk cow numbers were higher in 13 states, with those increases ranging from 1,000 head in Florida to 43,000 head in Texas; down in nine states, with those declines ranging from 1,000 head in Illinois to 11,000 head in California; and unchanged in Wisconsin.


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Wisconsin State Fair(Continued from p. 1)

degrees and support the House of Moo dairy education center, as well as the Wisconsin State Fair milking demonstrations.

This year’s contest featured 27 cheese classes and one butter class. Winning entries in each class include:

Mild CheddarFirst place: Dan Stearns, Agropur, Weyauwega, 99.400Second place: Jacque Vey, Land O’Lakes, Kiel, , 99.150Third place: Terry Lensmire, Agropur, Weyauwega, 99.100

Aged CheddarFirst place: Jacque Vey, Land O’Lakes, Kiel, 98.975Second place: Larry Harris, Meis-ter Cheese Company, Muscoda, 98.700Third place: Steve Hobbs, Land O’Lakes, Kiel, 98.550

Colby, Monterey JackFirst place: Andy Follen, Lynn Dairy, Granton, Monterey Jack, 98.400Second place: Jason Studnicka, Meister Cheese Company, Mus-coda, Colby Longhorn, 98.300Third place: Larry Harris, Meis-ter Cheese Company, Colby Jack Longhorn, 98.275

Swiss StylesFirst place: Marc Druart, Emmi Roth, Monroe, Petite Swiss, 99.675Second place: Chalet/Team Dep-peler Factory, Chalet Cheese

Co-op, Monroe, Baby Swiss Wheel, 97.950Third place: Neal Schwartz, Cha-let Cheese Co-op, Baby Swiss Wheel, 97.900

Brick, MuensterFirst place: Matt Henze, Decatur Dairy, Brodhead, Brick, 99.725Second place: Dave Buholzer, Klondike Cheese Co., Monroe, Brick, 99.650Third place: Ron Bechtolt, Klon-dike Cheese Co., Monroe, Muen-ster, 99.475

MozzarellaFirst place: Roger Krohn, Agro-pur, Luxemburg, 99.575Second place: Crave Cheese Team, Crave Brothers Farmstead Cheese, Waterloo, 99.350Third place: Roger Krohn, Agro-pur, 99.050

String CheeseFirst place: Dan Schwind, Baker Cheese Factory, St. Cloud, 99.575Second place: Larry Brown, Baker Cheese Factory, 99.525Third place: Tim Entringer, Baker Cheese Factory, 99.325

Blue Veined CheeseFirst place: Team Fond du Lac, Saputo Specialty Cheese, Milwau-kee, Blue, 99.350Second place: Mike Berg, Lake Country Dairy, Turtle Lake, Gor-gonzola, 99.325Third place: Mike Berg, Lake Country Dairy, Blue, 98.750

FetaFirst place: Nathan Forseth, Agro-pur, 99.225

Second place: Terry Lensmire, Agropur, 99.100Third place: Micah Klug, Agro-pur, 98.850

Flavored Pepper CheeseFirst place: Marc Druart, Emmi Roth, Sriracha Gouda, 99.250Second place: Matt Henze, Deca-tur Dairy, Havarti with Pepper, 99.150Third place: Larry Brown, Baker Cheese Factory, Flavored Pepper Cheese, 99.000

Flavored Soft CheeseFirst place: Steve Buholzer, Klon-dike Cheese Co., Peppercorn Feta, 99.200Second place: Crave Brothers Farmstead Cheese, Marinated Fresh Mozzarella, 98.900Third place: Adam Buholzer, Klondike Cheese Co., Mediterra-nean Feta, 98.850

Flavored Semi Soft CheeseFirst place: John (Randy) Pitman, Mill Creek Cheese, Arena, Cara-way Brick, 99.175Second place: Marieke Penter-man, Marieke Gouda, Thorp, Bacon Gouda, 99.075Third place: Team Hennings, Saputo Specialty Cheese, Milwau-kee, Blueberry Cobbler Cheddar, 99.000

Smoked CheeseFirst place: Saxon Creamery Team, Saxon Cheese, Cleveland, Smoked Gouda, 99.400Second place: Walter Hartwig, Zimmerman Cheese, South Wayne, Smoked Brick, 99.350

Third place: Chad Duhai, Zim-merman Cheese, Smoked Brick, 99.200

Flavored Hard CheeseFirst place: Mike Matucheski, Sartori Company, Antigo, Sartori Reserve Chipotle BellaVitano, 99.650Second place: Mike Matucheski, Sartori Company, Sartori Reserve Espresso BellaVitano, 99.550Third place: Mike Matucheski, Sartori Company, Antigo, Sartori Reserve Black Pepper BellaVitano, 99.500

Smear Ripened CheeseFirst place: John Stesniak, Lake Country Dairy, Turtle Lake, Mon-teau, 99.650Second place: Marc Druart, Emmi Roth, Roth Grand Cru Reserve, 99.600Third place: Marc Druart, Emmi Roth, Roth Pavino, 99.200

Cold Pack Cheese, Cheese FoodFirst place: Team Pine River, Pine River Pre-Pack, Newton, Swiss & Almond cold pack, 99.550Second place: Dustin Wallendal, Widmer’s Cheese Cellars, Theresa, Aged Brick Spread, 99.050Third place: Team Pine River, Pine River Pre-Pack, Horseradish cold pack, 99.000

Pasteurized Process Cheese, Cheese Food, Cheese Spread

First place: Slice Team, Associ-ated Milk Producers, Portage, Pasteurized Process Colored Amer-ican, 98.800

• See Wisconsin State Fair, p. 8


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WI Dairy Summit(Continued from p. 1)

increases in milk premiums, Ste-phenson continued.

“Exports have been good for the US dairy industry,” Stephen-son stated. “They’ve allowed us to achieve some growth in milk pro-duction that we couldn’t otherwise have had.”

But there are some downsides to the US role in world dairy trade, Stephenson pointed out. These include greater susceptibility to price volatility, as well as milk and dairy products backing up into stocks during a downturn.

Regarding US dairy trade with Canada, Stephenson noted that US exports of milk protein isolate (MPI) to Canada had recently grown to more than $100 million

a year, with half of that from two plants in New York and half from Grassland Dairy, based in Green-wood, WI (with a small volume from an Idaho plant).

In response, Canada created a new milk pricing class that will enable its dairy industry to produce MPI that will be priced at world prices, Stephenson said. That gave Canada an opportunity to effec-tively cut off MPI sales from the US, because US product is no lon-ger competive price-wise.

In early April, Grassland announced that it would drop milk purchases from 75 produc-ers, a volume of about 1 million pounds of milk per day, because of lost sales to Canada, Stephenson said. That is a lot of milk to absorb into an already challenged market, • See WI Dairy Summit, p. 10

Wisconsin State Fair(Continued from p.7)

Second place: Loaf Team, Asso-ciated Milk Producers, Pasteurized Process with Jalapeño Peppers, 98.550Third place: Slice Team, Asso-ciated Milk Producers, Inc., Pas-teurized Process American Swiss, 98.500

Reduced Fat Or Lite CheeseFirst place: Steve Webster, Klond-ike Cheese Co., Reduced Fat Feta, 99.725Second place: Dave Buholzer, Klondike Cheese Co., Monroe, Reduced Fat Mediterranean Feta, 99.525Third place: Matt Erdley, Klon-dike Cheese Co., Monroe, WI, Reduced Fat Tomato & Basil Feta, 99.400

Open Class - Soft & SpreadableFirst place: Crave Brothers Farm-stead Cheese, Mascarpone, 99.350Second place: Katie Fuhrmann and Team LaClare, Artisan Cheese Exchange, Malone, Fresh goats milk cheese, 99.275Third place: Fred Wolff, Lake Country Dairy, Mascarpone, 99.250

HavartiFirst place: Decatur Cheesemak-ers, Decatur Dairy, Brodhead, WI, 98.925Second place: Ben Workman, Edelweiss Creamery, Monticello, 98.875Third place: Steve Stettler, Deca-tur Dairy, 98.625

Flavored HavartiFirst place: Ron Bechtolt, Klon-dike Cheese Co., Dill Havarti, 99.675Second place: Dave Gietzel, Edel-weiss Creamery, Dill Havarti, 99.325

Third place: Luke Buholzer, Klon-dike Cheese Co., Dill Havarti, 99.250

Open Class - Semi Soft CheeseFirst place: Marieke Penterman, Marieke Belegen Gouda, 99.025Second place: Gary Grossen, Bab-cock Hall Dairy Plant, Madison, Gouda, 98.750Third place: , Maple Leaf Cheese, Monroe, Fontina, 98.700

Open Class - Hard CheeseFirst place: Chris Roelli, Roelli Cheese Company, Shullsburg, Dunbarton, 99.550Second place: Erin Radtke, Sartori Company, Sartori Classic Asiago, 99.050Third place: Mike Matucheski, Sartori Company, Antigo, Sartori Reserve SarVecchio Parmesan, 99.000

Flavored Goat Milk CheeseFirst place: Team Lancaster, Saputo Specialty Cheese, Milwau-kee, wild blueberry vanilla chevre, 99.675Second place: Simon Rossard, Montchevre-Betin, Belmont, cran-berry & cinnamon, 99.550Third place: Team Lancaster, Saputo Specialty Cheese, raspberry chevre, 99.000

Natural Goat Milk CheeseFirst place: Katie Fuhrmann and Team LaClare, Artisan Cheese Exchange, aged goat cheese, 99.650Second place: Pam Hodgson, Sar-tori Company, Plymouth, Sartori Limited Edition Extra-Aged Goat, 99.350Third place: Frank Walton, Montchevre-Betin, Belmont, Cheddar, 99.050

Latin American CheeseFirst place: Jace Johnsrud, Chula Vista Cheese, Browntown, Chi-huahua Loaf, 99.350Second place: Casey Berget, Chula Vista Cheese, Oaxaca Ball, 99.150Third place: John (Randy) Pit-man, Mill Creek Cheese, Queso Quesadilla, 98.900

Sheep & Mixed Milk CheeseFirst place: Mike Matucheski, Sar-tori Company, Sartori Limited Edi-tion Pastorale Blend, 99.375Second place: Katie Fuhrmann and Team LaClare, Artisan Cheese Exchange, Malone, Mixed Milk Cheese, 99.250Third place: Katie Fuhrmann and Team LaClare, Artisan Cheese Exchange, Malone, Mixed Milk Cheese, 99.000

ButterFirst place: Mary Burmaster, Foremost Farms USA, Reedsburg, Salted Butter, 99.550Second place: Dan Stolte, Fore-most Farms USA, Reedsburg, Salted Butter, 99.200Third place: Diana Seep, Foremost Farms USA, Reedsburg, Salted Butter, 99.075.



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DFA Opens New Headquarters Building In Kansas City, KSKansas City, KS—Dairy Farm-ers of America (DFA) recently celebrated the opening of its new headquarters building in Kansas City, KS, with an open house for its board members, local officials and others.

“This building is a testament to our family farmers and the sustain-able practices they employ on their dairies each and every day,” said Rick Smith, DFA’s president and CEO. “We intentionally designed it to use more natural materials like reclaimed woods, concretes and metals, so there’s a welcoming feel, while still being very modern and fully equipped for how the world works today.”

Throughout the three-story, 110,000-square-foot building, there are other design touches and furnishings that pay homage to life on the farm and the production of milk, including the use of uphol-steries like plaid and cow hide for various seating areas.

Artistic feature walls showcase aspects of DFA’s business from a barn board and milk bottle caps to steel pipes representing the co-op’s numerous milk process-ing plants.

Qualifying as Silver LEED-cer-tified, the new DFA headquarters building includes a number of sus-tainable design practices, includ-ing panels of glass framing the building’s exterior, which not only brings in an abundance of natu-ral light into the office environ-ment, but also work to help reduce energy use.

USDA’s Agricultural Marketing Service Offers Auditing Service For Dairy, Infant Formula Exports To ChinaWashington—A memorandum signed last week by the US Food and Drug Administration (FDA) and the Chinese Certification and Accreditation Administration (CNCA) recognizes USDA’s Agri-cultural Marketing Service (AMS) as a third-party certifier eligible to conduct verification audits against Chinese requirements for US dairy and infant formula plants intend-ing to export to China.

Since May 2014, the CNCA has required dairy and infant for-mula plants that ship products to China to be registered with them through the publication of facility lists. To be successfully published on CNCA’s dairy and infant for-mula plant lists, the plants must be found compliant with Chinese laws and regulations.

The Memorandum of Under-standing (MOU) signed last week by FDA and the CNCA formally outlines a process in which third-party certification bodies, on FDA’s behalf, will audit US dairy facilities to make sure they comply with Chinese food safety require-ments (for more details, please see Memo Between FDA, Chinese Government Boosts US Access To China’s Dairy Market, on page 3 of our June 16, 2017 issue).

Obtaining a verification audit is mandatory for plants to be regis-tered; plants not registered are not eligible to ship to China, AMS noted. CNCA has published a catalog of products that require registration.

In order to facilitate understand-ing of CNCA’s product categories, USDA has identified the following Harmonized System (HS) product codes that require registration with CNCA: 0401: Fluid milk and cream of

varying fat contents. 0402: Concentrated milk,

including milk powder, evaporated milk, and sweetened condensed milk. 0403: Yogurt, buttermilk,

other fermented and acidified milk and cream. 0404: Whey and modified

whey up to 80 percent protein; other products of natural milk con-stituents (including milk protein concentrate and milk permeate, but excluding colostrum). 0405: Butter, dairy spreads,

milk fats. 0406: Cheese. 1702: Lactose. 1901.10: Infant formula.USDA has identified the follow-

ing HS product codes that do not require registration with CNCA: 1901.90, dairy-based food prepara-

tions on goods of HS 0401-0404; and 2015.00, ice cream, edible ice.

Plants should note that CNCA has reserved the right to modify the list of products requiring regis-tration, so information contained in a recent notice from AMS is subject to change.

For details about AMS audit verification services, contact Michael Eichorst, administra-tive officer, AMS Dairy Grading National Field Office, at (630) 810-9999; e-mail [email protected]; or AMS Dairy Program, at (202) 720-4392; or Carrie L. Sayasithsena, national program coordinator, AMS Dairy Grading and Standards, at (202) 720-9381; e-mail [email protected].

For more information regard-ing CNCA’s registration require-ments, e-mail [email protected].



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WI Dairy Summit(Continued from p. 8)

through it’s only a little more than 1 percent of Wisconsin milk pro-duction.

So trade with Canada is an issue, and it does take some of the blame for the near loss of markets for a few dairy producers, Stephen-son said.

But US milk production has been strong in the Upper Midwest, and export markets have been soft, causing cheese and butter stocks to build.

Shifting production patterns in the US have caused milk to look for a processing home in the Northeast and Upper Midwest, he noted. Michigan is short of pro-cessing capacity by 6 to 7 million pounds of milk per day, and needs a plant “desperately.”

When that milk comes into Wisconsin or another state, it can be sold at prices under federal order prices.

“I think we’re past the worst of it now,” Stephenson said. We’re past the peak of the spring flush, and world markets are now improving “rather dramatically.”

But “this is not likely to be the end of this kind of story. I think we’re going to see continued pres-sure on plants and milk production and sales,” Stephenson said.

Solution: Sales & MarketingThe solution to having too much milk in Wisconsin “isn’t building another plant, and it’s not dump-ing more product on the world market. It’s about marketing,” said

John Umhoefer, executive director of the Wisconsin Cheese Makers Association (WCMA).

“Dairy’s answer isn’t making more stuff,” Umhoefer said. It’s finding out what people want, and making it for them, packaging it the way they want, and distribut-ing it the way they want.

“The problem isn’t too much milk,” he continued. It’s, are we marketing food products the way we should in the dairy industry, and “I would say that we are behind the curve compared to other food products.”

Umhoefer offered Dairy Summit attendees 10 “polite suggestions”: Wisconsin does not sink

enough dollars into research and development, both on the process-ing side and on the university side. This is mostly product develop-ment and product functionality research. Grow sales and marketing.

“We in the dairy industry have got to be better marketers,” Umhoefer said.

“We’ve got to get our companies and cooperatives driving toward the end consumer and not toward production, not building that next Cheddar plant because we’ve got too much milk,” Umhoefer con-tinued. “We’ve got to break the ties

we have with federal pricing,” Umhoefer said. There are problems with the classification of milk and with the pricing of milk. “We’re not getting good market signals out to dairy producers.” Classified pric-ing “stifles the development of new dairy products.”

Processors and producers have to be united. There should be a common message, a common goal and a common direction. We have to embrace all the

species. We don’t need to fight about who’s better among goat, sheep and cow; we need to embrace them all, according to Umhoefer.

We need those tinkering arti-san cheese makers; we need those alternative milk production styles; we have to embrace the organic and the grass-fed. “If that’s what the consumer wants, that’s what we should make,” Umhoefer con-tinued. We need to build our brand

expertise. Europeans are trying to fight for old cheese names, but Umhoefer thinks we should be developing new cheese names and new cheese styles.

“We need to fight the rear-guard action and not let terms like Feta and Parmesan disappear, but we need to be making the next dairy products,” he said. The dairy industry’s “moon

shot” should be solving the prob-lem of manure. If we can turn manure into an asset instead of a liability, then we’ve solved about half of dairy’s problems, according to Umhoefer. The dairy industry should

“own” sustainability. “We are stew-ards of the land, we make a natural food product.” Let’s not follow sus-tainability because Walmart tells us to, let’s lead. The dairy industry should

be transparent. The industry has nothing to hide. Finally, “let’s keep making

the best.” Wisconsin already has the “halo” of quality cheese pro-duction, and that will drive sales and marketing.

“Our problem isn’t Canada, it’s the consumer,” Umhoefer said.

Exports And Specialty CheeseProf. John Lucey, director of the Wisconsin Center for Dairy Research (CDR), said the dairy industry should think not just about volume, but about extract-ing more value.

Possible future opportunities for dairy, according to Lucey, include: Increased exports. US dairy

exports have more than quadru-pled since 2000, to $4.9 billion in 2016.

About 14 percent of US milk production (expressed as milk solids) ends up being exported. Consumers outside the US have different expectations for taste, color, texture and other dairy prod-uct attributes, depending on their experiences. Specialty cheese “has only

just begun” in Wisconsin. Wis-consin could “easily” top 1 bil-lion pounds of specialty cheese production within the next 10 years (Wisconsin’s specialty cheese last year totaled 774 mil-lion pounds). Traditional milk consump-

tion is declining, but there are opportunities for new dairy bever-ages, including fairlife, as well as beverages containing dairy pro-teins, such as Core Power. Cultured products are a

“sleeping giant.” Per capita con-sumption of cultured products in the US is “tiny” compared to many European countries.

Lucey also touched on some challenges for the dairy manufac-turing sector, including the need for increased dairy foods research efforts to promote innovation and to stay competitive inter-nationally; unnecessary regula-tory barriers to innovation (e.g., ultrafiltered milk, milk-derived whey); and an adequate supply of trained workers.



Nominations For National Dairy Promotion, Research Board Due July 10Washington—The US Depart-ment of Agriculture (USDA) is seeking nominations for the National Dairy Promotion and Research Board.

The nomination deadline is Monday, July 10, 2017.

USDA will appoint 12 dairy producers and one importer to serve three-year terms beginning Nov. 1, 2017, and ending Oct. 31, 2020. Representatives will replace board members whose terms expire Oct. 31, 2017.

Nominations will be accepted from the following regions: Region 1 (Alaska, Oregon and Washington); Region 3 (Arizona, Colorado, Montana, Nevada, Utah, and Wyoming); Region 4 (Arkansas, Kansas, New Mexico, Oklahoma, and Texas); Region 5 (Minnesota, North Dakota and South Dakota); Region 6 (Wis-consin); Region 7 (Illinois, Iowa, Missouri, and Nebraska); Region 8 (Idaho); Region 9 (Indiana, Mich-igan, Ohio and West Virginia); Region 10 (Alabama, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, Puerto Rico, South Carolina, Tennessee, and Virginia); and Region 12 (Con-necticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont).

USDA will appoint two mem-bers for Region 4 and Region 6, and one for each of the remain-ing regions and the dairy importer position. For nomination forms

PERSONNEL and more information, visit www.ams.usda.gov/rules-regulations/research-promotion/dairy.

ARTUR ZIMMER, co-founder of Caloris Engineering, has transi-tioned to the role of chief technol-ogy officer. Zimmer, who retains a significant ownership position in the company, had been president of Caloris since its inception in 2006, and was named CEO several years ago. JIM PETERSON, cur-rent Caloris president, has added the role of CEO.

JASON HAFEMEISTER, until now serving as the acting deputy under secretary for farm and for-eign ag services, will now be act-ing deputy under secretary for trade and foreign ag affairs at the US Department of Agriculture (USDA). He has been involved in agricultural farm and trade policy for over 25 years, including almost 20 at USDA and with the Office of the US Trade Representative. ROBERT JOHANSSON will serve as the acting deputy under secretary for farm production and conservation, while also concur-rently remaining USDA’s chief economist, a position he has held since July 2015. Since 2001, he has worked as an economist at USDA, in the Office of Information and Regulatory Affairs at the Office of Management and Budget, and at the Congressional Budget Office. In 2011, Johansson was appointed senior economist for energy, envi-ronment, and agriculture on the President’s Council of Economic Advisers. DAN JIRON will fill the role of acting deputy under secretary for natural resources and environment. With more than 29 years of public service and natural resources management, Jiron was

most recently appointed associate chief of USDA’s Forest Service in July 2016. ANNE HAZLETT has been tapped to lead the rural development agencies at USDA. Hazlett, whose title will be assistant to the secretary for rural development, will oversee the Rural Utilities Service, the Rural Business Service, and the Rural Housing Service. She most recently served as chief counsel to the majority on the US Senate Ag Committee.

TIM HINCKLEY has joined Americold as executive vice president and chief commercial officer. In his new role, Hinckley will be responsible for Americold’s business development, including guiding key accounts, branding, marketing and communications, and overall customer experience. Hinckley most recently served as senior vice president of global logistics at Hasbro.

HILARY THESMAR has been promoted to chief food and prod-uct safety officer and senior vice president, food safety programs, with the Food Marketing Insti-tute (FMI). Thesmar has been with FMI for six years, responsible for supervising food safety pro-grams, initiatives, activities and resources for FMI and its members. She also represents FMI to gov-ernment, congressional, scientific, consumer and industry members on issues related to food safety and government regulatory com-pliance. STEPHANIE BARNES now serves as FMI’s chief regu-latory officer and legal counsel, expanding her regulatory role to include legal oversight of FMI’s bylaws and antitrust guidelines. Joining FMI in 2009, LEANN

CHUBOFF has been named con-tent expert, touring the country teaching the Global Food Safety Initiative. SARAH MALENICH was promoted to director, Safe Quality Food Institute sales and marketing, focused on promoting and evaluating all SQFI programs.

LORI ERNST, JEFF CARPEN-TER and RANDAL GARRETT have been promoted to senior vice presidents at Food Safety Net Services (FSNS). Ernst will continue to manage FSNS certifi-cation and auditing, and Carpen-ter will continue to be responsible for strategic alliances. Garrett will also be in charge of operations. Other promotions include TIM SANTY to vice president of oper-ations; SCOTT EDWARDSEN to vice president, information technology; and GENNADIY LIBERZON to vice president of accounting and finance. JOEL HAAG, an industry veteran with over 20 years of purchasing experi-ence, will serve as vice president of purchasing and distribution.

Thom Smith Simmons, 88, of Cambridge, MN, died suddenly May 13, 2017. Simmons joined the C.E. Rogers Company, a Detroit-based dairy equipment design and manufacturing firm, in 1961. He moved with the company to Mora, MN, ten years later and served as chief engineer for 14 years before being named vice president of engineering in 1985. He retired in 1993. Simmons was an invited guest lecturer at Michigan State University and held several pat-ents. After retiring, he traveled overseas to assist companies to adapt and repair their equipment.

DEATHS

Bob Cropp(Continued from p. 4)

percent in New Mexico and 14.7 percent in Texas. Milk produc-tion has slowed some in both the Northeast and Midwest.

May milk production was up 2.3 percent in New York, 2.1 percent in Pennsylvania, 4.0 percent in Michigan, 1.4 percent in Iowa, 2.6 percent in Minnesota and 2.8 per-cent in South Dakota. But, with no change in cow numbers but less milk per cow Wisconsin’s produc-tion fell 0.7 percent.

Other states with lower May milk production were Florida down 0.4 percent, Oregon down 3.5 percent and Washington down 1.4 percent.

Dr. Bob Cropp is emeritus pro-fessor in the department of agricul-tural and applied economics at the Uuniversity of Wisconsin-Mad-ison. While retired, he remains active in dairy marketing, dairy policy and ag cooperative issues.


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

www.cheesereporter.com/events.htmSUPPLIER NEWS

COMPANY NEWS

PEOPLE

June 26-27: 118th California Creamery Operators Associa-tion’s Annual Meeting, Harrah’s South Lake Tahoe, Stateline, NV. For details, visit www.cco-adairy.org.

•July 26-29: 2017 ACS Annual Conference & Cheese Compe-tition, Denver, CO. Visit www.cheesesociety.org.

•Aug. 10-11: Idaho Milk Proces-sors Association Annual Meet-ing, Sun Valley Resort, Sun Valley, ID. Visit www.impa.us.

•Sept. 10-12: NYSCMA Fall Meeting, Islands Harbor Hotel, Clayton, NY. For more details, visit www.nyscheesemakers.com.

•Sept. 17-20: International Whey Conference, Sheraton Grand Hotel, Chicago, IL. Visit www.internationalwheyconfer-ence.org.

•Sept. 19-22: Process Expo, McCormick Place, Chicago, IL. For details or to register, visit www.myprocessexpo.com.

PLANNING GUIDE

Service Technician – Pleasant Prairie, WI - Central Valley, CA - Dallas, TXJob Description: Field Service Technician performs heat exchanger preventive maintenance inspections, repairs, troubleshooting, supervis-es installations and training programs in the field at customer locations throughout the United States. The Field Service Technician accurately reports these service visits for AGC customers for planning, corrective actions and to assist with proper plant preventive maintenance. Job Duties: Field Service Technician performs the following duties and other special projects upon request: • Field PlateCheck™ inspections, heat exchanger repairs troubleshooting, installation and supervision, and training at customer locations - including travel to customer locations. • We anticipate you will perform four to five inspections or supervision service calls per month depending on the location and time involved in travel. • Some of the inspections and associated travel will be during the weekend. Experience: Excellent communication skills and basic computer knowledge a must. Technical school training or college degree a plus. Maintenance experience or military role is also a positive advantage.

Submit resumes to [email protected]

EQUAL OPPORTUNITY EMPLOYER

Domestic and International Dairy TradersMCT Dairies, a premier dairy trading company is expanding its operations and seeking experienced Dairy Traders for both domestic and international sales and sourcing.

MCT is looking for detail oriented, customer driven, individuals who thrive in a fast-paced environment. A successful candidate will have:

n Experience within the Dairy Industry including Cheese, Butter and Dairy powdersn Ability to manage multiple priorities n Strong communication skillsn High level of detail and accuracy n Ability to meet deadlines and prioritizenSelf motivated with good time management skillsn Ability to learn and thrive in the company operating systemsn Expected Travel approximately 10-14 days per quartern Strong customer and vendor base a plus

If you’re interested in joining a team-oriented, results driven, active organization, please apply today!

Send Resume and Cover Letter with a list of 5 References including at least 3 professional references to [email protected] or fax to: 973-258-9222.

Benefits include competitive pay + commissions, Health Care with participation. Dental and eye available. 401k and flex spending.

MCT Dairies is an equal opportunity employer and all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, disability status, protected veteran status, or any other characteristic protected by law.

Registration Open For Penn State Art Of Cheesemaking Workshop Nov. 13-16University Park, PA—Penn State University will host a special work-shop here Nov. 13-16 on the art and science of cheesemaking at the Rodney Erickson Food Science Building on campus.

Designed to provide knowledge of the materials and processes used to make specialty cheese and tech-niques to improve a cheese busi-ness, this four-day course covers milk composition and microbiol-ogy; rennet and cheese cultures; cheese making principles; sanita-tion practices; food safety plans; sensory evaluation; and marketing.

It is targeted for farmstead and artisan dairy producers and proces-sors, those interested in develop-ing a value-added dairy business,

people interested in cheesemaking, equipment and ingredient suppli-ers for small-scale cheese makers, and regulatory personnel.

The course begins with a focus on the materials used for cheese-making.

Knowledge of milk composi-tion and microbiology combined with good sanitation practices as the foundation for the consistent cheesemaking will be highlighted.

Instructors will also cover the chemical and microbial changes at each step in the cheesemaking pro-cess to help students understand how to adjust their make procedure to modify finished cheese proper-ties or in response to variations in milk supply or other factors.

Hands-on labs include a micro-biology testing session and making several varieties of cheese in the pilot plant.

A sensory evaluation session integrates the principles learned in lectures and labs and illustrates how cheese evaluation can be used to troubleshoot manufacturing problems.

Food safety principles, including HACCP, will also be covered to help cheese makers comply with current and anticipated regula-tions.

Cost to attend prior to Oct. 26 is $1,075. For more details or to register online, visit www.cvent.com/events/the-science-and-art-of-cheese-making-short-course.

Nation Dairy FARM Program Includes Tour Of Fair Oaks Farm; To Be Held July 18-20Indianapolis, IN— The second annual National Dairy FARM Pro-gram Evaluator Conference will take place here July 18-19 at The Alexander Hotel, with an optional farm trip to Fair Oaks Farm on July 20.

More than 400 certified FARM Program evaluators will have the chance to network and discuss

relevant topics in animal care, environmental stewardship and antibiotic stewardship.

Starting on Tuesday, July 18, FARM evaluators will spend a day focusing on professional develop-ment and learning more about the global business of feeding a grow-ing population.

The following day features a full day of educational program-ming, including presentations on “The Economics of Animal Well-Being,” as well as insight from a panel of farmers and veterinar-ians on the importance of proto-

col development and employee training. Thursday’s optional trip to Fair Oaks Farms includes a tour of the dairy’s facilities and a discussion with co-founder Mike McCloskey, farm veterinarians and management staff about how Fair Oaks implements training and protocols for the high-level care of their animals and land.

Registration is $199, with the optional Fair Oaks tour costing an additional $50. For more informa-tion and to register online, visit www.registration123.com.


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. Classi-fied ads charged $.75 per word. Clas-sified ads payable in advance. Display Classifieds charged per column inch. For information, call 608-246-8430.

1. Equipment for Sale

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

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: 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].

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].

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]

3. Products

4. Walls, Flooring

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

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.

5. Real Estate

DAIRY PLANTS FOR SALE: http://dairyassets.webs.com/acquisitions-mergers-other. Contact Jim at 608-835-7705; or by email at [email protected]

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]

7. Positions Wanted

Recently been downsized and looking

for a position within the dairy industry?

Receive a free 3-month subscription to

Cheese Reporter and keep up with all

of the latest job listings. Call 608-246-

8430 for details. Check out all the post-

ings at www.cheesereporter.com.

10. Cheese & Dairy Products

FOR SALE: Vintage 10-20+ year old Cheddar cheese. Available by the pound, by the block or by the pal-let. Originally made in Black Creek, WI. Call Carol, Joe’s Cheese House at (715) 735-6922.

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

14. Warehousing

REFRIGERATION, DRY & FROZEN STORAGE SPACE AVAILABLE: We’ve added cooler space and a heated dry storage area. Contact: Eric at Sugar River Cold Storage 1-877-283-5840 or email [email protected]. for information.

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

17. Miscellaneous

For more information on any of these advertisers, contact 608-246-8430; email [email protected] or visit www.cheesereporter.com

For hard to find products, supplies or employees, visit

www.cheesereporter.com/classifieds.htm or e-mail [email protected]

or 608-246-8430 or 608246-8431

Research AssociateDairy Manufacturing,

Dairy Science Department South Dakota State University

Position Description: Research Associate in Dairy Manufacturing, Dairy Science Department at South Dakota State University. Provide support in manufacture of natural and process cheese, dried milk protein concentrates, and other dairy based ingredients; as well as perform proximate, physiochemical, and functional analysis on various dairy products.

Requirements: Master’s degree in Dairy Manufacturing, Food Science, or close-ly related �eld is required.

For additional information contact: John Haberkorn, Dairy Science Department, Telephone: 605/688-5480; Email: [email protected] (inquiries only). Applications should be received by August 1, 2017. For a complete listing of job responsibilities, detailed list of quali�cations and to apply, visit http://Your-Future.sdbor.edu, search for the position, and follow the electronic application process. For questions on the electronic employment process, contact SDSU Human Resources at (605) 688-4128.

SDSU is an AA/EEO employer. Women, veterans, persons with disabilities, and minorities are encour-aged to apply.

Research & Development TechnicianDairyfood USA, Inc., a SQF level 3 certified market leader in specialty cheese production for over 60 years, is currently seeking an R&D Technician to perform research and development activities to include innovation, brand maintenance, productivity and quality initiatives. Based in our production facility in the heart of America’s Dairyland, Blue Mounds, WI, this position reports to the Director of Product Development. This position supports the formulation, development and evaluation of new products, and the continued advancement of current products, within the product development guidelines of SQF. This position will also support the organization’s quality assurance initiatives, ensuring that our industry leading quality standards are maintained and further developed. Ideal candidates will have an Associate’s degree (Bachelor’s preferred) in Dairy Science, Food Science, Microbiology or a related field and a minimum of 2 years of professional experience in an applied R&D environment in the food industry. Professional experience in an applied R&D environment in the processed cheese industry is preferred. The position offers a competitive salary and a comprehensive benefits package. Interested applicants should email a cover letter, resume and salary requirements to:

[email protected] USA, Inc.2819 County Road F, Blue Mounds, WI 53517(Corner of 18/151 & County Rd F)608-437-5598www.dairyfoodusa.com

Equal Opportunity Employer

Dairyfood USA, Inc.Sales & Marketing ManagerDairyfood USA, Inc., a SQF certified market leader in specialty cheese produc-tion for over 60 years is seeking a Sales/Marketing Manager for its Western Region. The Western Region Sales Manager will develop strategy and organize and execute a dynamic marketing and sales program serving diversified markets such as Food Service, Private Label, Grocery, Snack Companies and Retail.

Develops and manages Broker network. Develops and executes general sales promotion and advertising strategy. Coordinates and directs meetings, confer-ences and convention programs to achieve maximum direct product exposure and promote sales. Represents Company at regional and national trade shows.

The ideal candidate will have sales and marketing experience in the Food Industry and live in the region.

Dairyfood USA, Inc. offers an excellent salary and comprehensive benefit pack-age.

For confidential consideration,please forward resume to:

Peggy WhiteHuman Resources ManagerDairyfood USA, [email protected]

Dairyfood USA, Inc.Sales & Marketing Manager

Dairyfood USA, Inc., a SQF certified market leader in specialty cheese produc-tion for over 60 years is seeking a Sales/Marketing Manager for its EasternRegion responsible to develop strategy and to organize and execute a dynamicmarketing and sales program serving diversified markets such as Food Service,Private Label, Grocery, Snack Companies and Retail.

Develops and manages Broker network. Develops and executes general salespromotion and advertising strategy. Coordinates and directs meetings, confer-ences and convention programs to achieve maximum direct product exposureand promote sales. Represents Company at regional and national trade shows.

The ideal candidate will have sales and marketing experience in the FoodIndustry and live in the region.

Dairyfood USA, Inc. offers an excellent salary and comprehensive benefit pack-age.

For confidential consideration,please forward resume to:

Peggy WhiteHuman Resources ManagerDairyfood USA, [email protected]

ory to:

www.gmigaskets.com

Plant Manager

Arena Cheese, Inc. is located in South Central Wisconsin, approximately 30 miles west of Madison, WI. Arena Cheese is a growing cheese manufacturer of award-winning cheeses, serving recognized regional and national grocers and distributors. We are seeking a qualifi ed individual to serve as a plant manager reporting directly to the general manager and owner of the plant. Health and other benefi ts are available. Salary dependent upon experience and qualifi cations. Responsibilities will include:

Direct and coordinate production, maintenance and warehouse functions

Understand & implement continuous improvements for GFSI (BRC) Compliance

Problem solving and trouble-shooting

Planning, assigning and directing work

Training and developing personnel

If interested in this position, please forward resume to:

Arena Cheese, Inc.P.O. Box 136

Arena, WI 53503Email: [email protected]

Visit our website at www.arenacheese.com.


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

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

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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: 6/23/17

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

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Federal Order Class 1 Minimum Prices & Other Advanced Prices - July 2017

Class I Base Price (3.5%) . . . . . . . . . . . . . . . . . . . . . . . . $16.59 (cwt)

Base Skim Milk Price for Class I . . . . . . . . . . . . . . . . . . . $7.32 (cwt)

Advanced Class III Skim Milk Pricing Factor . . . . . . . . . $7.32 (cwt)

Advanced Class IV Skim Milk Pricing Factor . . . . . . . . . $6.71 (cwt)

Advanced Butterfat Pricing Factor . . . . . . . . . . . . . . . . . $2.7212 (lb.)

Class II Skim Milk Price . . . . . . . . . . . . . . . . . . . . . . . . . $7.41 (cwt)

Class II Nonfat Solids Price . . . . . . . . . . . . . . . . . . . . . . $0.8233 (lb.)

Two-week Product Price Averages: Butter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2.4186 lb. Nonfat Dry Milk . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.9208 lb. Cheese . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1.6412 lb. Dry Whey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.4962 lb.

Base Class I Price was $16.59 per hundredweight for the month of July 2017. The price per hundredweight increased $1.28 from the previous month.Base Skim Milk Price for Class I was $7.32 per hundredweight for the month of July 2017. The price per hundredweight decreased $0.02 from the previous month.

Sanitary designProcess tune-up and upgradesAutomationOperator trainingIncrease existing process capacity

T H E R E L C O® A D V A N T A G E

From concept to commissioning RELCO provides innovative process engineering solutions and services:

Email [email protected] or call 320-222-0252

June 21, 2017—AMS’ National Dairy Prod-ucts Sales Report. Prices included are pro-vided 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 June 17 June 10 June 3 May 27

40-Pound Block Cheddar Cheese Prices and Sales Weighted Price Dollars/PoundUS 1.7057 1.7152• 1.6758• 1.6127Sales Volume PoundsUS 13,504,666 11,717,788• 11,551,984• 12,313,911•

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

Weighted Price Dollars/PoundUS 1.5994 1.6330 1.6128• 1.6006 Weighted Price Adjusted to 38% Moisture US 1.5234 1.5547 1.5371• 1.5278Sales Volume PoundsUS 11,574,235 12,832,612 11,961,197• 11,846,233Weighted Moisture Content PercentUS 34.91 34.88 34.95• 35.05

Butter

Weighted Price Dollars/PoundUS 2.4537 2.3886 2.3215 2.3087Sales Volume PoundsUS 5,516,487 6,448,285 5,883,309 3,232,433

Dry Whey Prices

Weighted Price Dollars/PoundsUS 0.4926 0.4997• 0.5006• 0.4904•Sales Volume US 6,269,759 6,563,201• 6,954,772 6,663,366•

Nonfat Dry Milk

Average Price Dollars/PoundUS 0.9199 0.9216• 0.8961• 0.8873•Sales Volume PoundsUS 11,919,315 14,868,071• 18,227,650• 17,205,592•

DAIRY PRODUCT SALES

$1.25

$1.35

$1.45

$1.55

$1.65

$1.75

$1.85

$1.95

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

40-Pound Block Avg

CME vsAMS

DAIRY FUTURES PRICESSETTLING PRICE *Cash SettledDate Month Class III* Class IV* Dry Whey* NDM* Butter* Cheese*6-16 June 17 16.33 16.02 48.950 91.750 243.300 1.61706-19 June 17 16.32 16.02 48.950 91.575 243.300 1.61606-20 June 17 16.33 16.02 48.950 91.525 243.300 1.61606-21 June 17 16.33 16.02 48.325 91.525 243.300 1.61606-22 June 17 16.35 15.98 49.250 91.100 242.750 1.6180

6-16 July 17 16.41 17.33 46.200 94.000 266.700 1.63006-19 July 17 16.22 16.86 46.200 92.500 259.500 1.61706-20 July 17 15.97 16.98 46.075 89.975 263.725 1.59306-21 July 17 15.91 16.71 46.050 89.975 262.975 1.59106-22 July 17 15.92 16.58 46.000 89.250 261.250 1.5880

6-16 August 17 17.03 17.48 43.775 95.650 267.250 1.71006-19 August 17 16.88 17.19 43.850 94.075 261.100 1.69806-20 August 17 16.73 17.19 43.750 91.500 265.500 1.68606-21 August 17 16.69 16.91 43.300 91.500 264.625 1.68306-22 August 17 16.74 16.68 43.250 89.750 263.900 1.6840

6-16 September 17 17.30 17.41 42.300 96.425 269.000 1.75106-19 September 17 17.15 17.29 43.475 95.175 262.950 1.73206-20 September 17 16.99 17.30 43.750 92.250 266.500 1.71906-21 September 17 16.91 17.01 41.850 92.250 263.300 1.71706-22 September 17 16.96 16.78 41.050 90.125 262.725 1.7240

6-16 October 17 17.39 17.35 41.150 96.925 266.075 1.77106-19 October 17 17.22 17.19 42.375 95.600 259.800 1.75006-20 October 17 17.14 17.19 42.500 93.000 263.450 1.74306-21 October 17 17.07 16.97 40.900 93.000 262.425 1.74706-22 October 17 17.09 16.79 39.750 90.900 261.825 1.7450

6-16 November 17 17.27 16.85 40.475 98.050 260.450 1.76606-19 November 17 17.16 17.14 41.400 96.375 259.125 1.75006-20 November 17 17.10 17.14 41.875 93.525 262.500 1.74506-21 November 17 17.08 17.08 40.525 93.525 248.200 1.74406-22 November 17 17.07 16.88 39.425 92.125 248.250 1.7460

6-16 December 17 16.99 16.85 39.100 99.475 249.250 1.74706-19 December 17 16.97 16.85 40.250 97.225 248.000 1.73506-20 December 17 16.92 16.72 41.050 94.800 248.250 1.73706-21 December 17 16.90 16.54 39.100 94.800 233.000 1.73706-22 December 17 16.89 16.26 38.500 93.750 233.000 1.7370

6-16 January 18 16.65 16.60 38.025 101.275 233.000 1.72506-19 January 18 16.70 16.49 38.025 99.125 233.000 1.72506-20 January 18 16.70 16.35 40.650 97.450 233.025 1.72506-21 January 18 16.68 16.17 38.025 697.450 233.000 1.72506-22 January 18 16.64 16.01 38.025 96.025 233.000 1.72506-16 February 18 16.65 16.60 38.025 103.375 231.500 1.72506-19 February 18 16.65 16.60 38.025 101.750 231.500 1.72506-20 February 18 16.66 16.52 38.025 99.575 231.500 1.72506-21 February 18 16.63 16.31 38.025 99.575 231.500 1.72506-22 February 18 16.58 16.27 38.025 98.500 231.500 1.7250

6-16 March 18 16.59 16.64 38.025 105.000 231.525 1.72006-19 March 18 16.59 16.64 38.025 103.900 231.525 1.72006-20 March 18 16.61 16.64 38.025 101.500 231.525 1.72006-21 March 18 16.57 16.48 38.250 101.000 231.525 1.72206-22 March 18 16.54 16.45 38.025 100.525 231.525 1.7220

6-16 April 18 16.51 16.64 38.750 105.925 229.950 1.71106-19 April 18 16.51 16.64 38.750 104.475 229.950 1.71406-20 April 18 16.55 16.64 38.750 102.400 229.950 1.71506-21 April 18 16.49 16.55 38.750 103.000 229.950 1.71506-22 April 18 16.45 16.49 38.750 101.425 229.950 1.7100

Interest - June 22 30,211 3,826 5,079 6,488 5,989 24,364

Dairy Product Stocks in Cold StorageTOTAL STOCKS AS REPORTED BY USDA (in thousands of pounds unless indicated) Public Stocks in All May 31, 2017 Warehouse Warehouses as a % of Stocks May 31, April 30, May 31, May 31, April 30, May 31, 2016 2017 2017 2016 2017 2017

Butter 324,942 292,289 313,575 97 107 289,462

Cheese American 757,530 833,586 847,04 112 102 Swiss 24,967 26,962 26,224 105 97 Other 466,885 472,263 467,101 100 99

Total 1,249,382 1,332,811 1,340,369 107 101 887,188

CHEESE REPORTERJune 23, 2017 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

06/19/17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,163 102,87406/01/17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,913 100,336Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,250 2,538

NATIONAL - JUNE 16: Across the US. milk is finding its way into cheese vats. Although milk production levels vary by region, bottling has scaled back due to school vacations, creat-ing a recent surplus of milk headed into cheese manufacturing. Cheese production, therefore, is steadily ongoing across all regions. Heavier production is leading to inventory level manage-ment in the East. In the Midwest, cheese producers’ reports on stocks vary, but some have concerns about their storage capacity. Western Mozzarella producers are also anxious regard-ing cheese stocks. Northeast and Midwest cheese demand is slow to steady. West spot sales are light, but contractual agreements and export interests are keeping overall demand steady to strong. Some cheese contacts are concerned regarding the large price gap on the CME. The lag in barrel prices leads contacts to suggest an instability in the overall cheese market.

NORTHEAST- JUNE 21: Milk supply volumes moving into regional cheese plants are sustaining those plants’ full production schedules. Sources indicated that current produc-tion rates are likely to continue, pending the restart of school, which typically reroutes milk back to Class I processing. Consequently, cheese stocks continue to build at some facilities. Opportunities for international trading are higher as some of those markets are becoming less competitive. Domestic demand is moderate to light, depending on the cheese variety, as Moz-zarella sales tick lower than last year’s levels at this time according to some area producers.

Wholesale prices, delivered, dollars per/lb:Cheddar 40-lb blocks: $2.0675 - $2.3525 Process 5-lb sliced: $1.5600 - $2.0400Muenster: $2.0525 - $2.4025 Swiss Cuts 10-14 lbs: $3.2000 - $3.5225

MIDWEST AREA - JUNE 21: Milk is available for cheese producers in the Midwest. However, cheese makers report the flush milk availability of previous weeks has noticeably decreased. Reported spot milk prices ranged from $1.00 to $4.00 under Class III. Cheese production has edged back. Some cheese producers in the Midwest are trying to manage heavy inventories. Some contacts suggest export sales, which are scheduled for future shipment dates, have not been accounted for, thus cheese inventories are not as heavy as widely believed. Central cheese producers report varied sales activity. Some report slower domestic retail sales, along seasonal lines. Some pizza cheese makers report steady sales, a little behind last year’s figures. Generally, there are some questions regarding what will happen with the cheese market.

Wholesale prices delivered, dollars per/lb: Process 5# Loaf: $1.4975 - $1.8575Brick/Muens 5# Loaf: $1.9925 - $2.4175 Cheddar 40# Block: $1.7200 - $2.1150Monterey Jack 10#: $1.9675 - $2.1725 Blue 5# Loaf: $2.2600 - $3.2475Mozzarella 5-6# (LMPS): $1.7925 - $2.7325 Grade A Swiss 6-9#: $2.7175 - $2.8350

WEST - JUNE 21: Western cheese makers report continued strong production as milk supplies are readily available for most processing needs. Industry contacts describe demand as good, but not great. Although retail and branded cheese sales are solid, foodservice activ-ity appears to be slightly slower. In addition, export inquiries seem to vacillate along with the variance between current U.S. market prices and international prices. Inventories are long. Contacts suggest older blocks and barrels comprise a good portion of the stocks along with seasonal supplies of Mozzarella and other pizza cheeses.

Wholesale prices delivered, dollars per/lb: Process 5# Loaf: $1.4850 - $1.7425Cheddar 40# Block: $1.7525 - $2.1975 Cheddar 10# Cuts: $1.9325 - $2.1525Monterey Jack 10#: $1.9425 - $2.1025 Grade A Swiss 6-9#: $2.7775 - $3.2075

FOREIGN -TYPE CHEESE - JUNE 21: In the European Union (EU), cheese sales are currently limited to contracted volumes, and no additional stocks are available for spot sales. Due to shorter supplies in the past weeks, not all cheese requests are fully accepted. As demand increases and supplies decrease, prices continue to ramp up within the EU. Cheese requests from within the EU countries, Southern European countries, and foreign countries continue to persistently trend upward. From January to April 2017, EU cheese exports rose by 7 percent compared to 2016; however, their imports decreased. In the US, wholesale Blue, Gorgonzola, Parmesan Italy, and Romano prices decreased $0.0200 and all other varieties remained stable.

Selling prices, delivered, dollars per/lb: Imported DomesticBlue: $2.6400 - 5.2300 $2.1375 - 3.6250Gorgonzola: $3.6900 - 5.7400 $2.6450 - 3.3625Parmesan (Italy): 0 $3.5275 - 5.6175Romano (Cows Milk): 0 $3.3275 - 5.4775Sardo Romano (Argentine): $2.8500 - 4.7800 0Reggianito (Argentine): $3.2900 - 4.7800 0Jarlsberg (Brand): $2.9500 - 6.4500 0Swiss Cuts Switzerland: 0 $3.2375- 3.5600Swiss Cuts Finnish: $2.6700- 2.9300 0

NATIONAL - JUNE 16: In the North-east, print retail and foodservice channels are active. In the Central, some contacts point out that domestic buyers are not cov-ered for the second half of the year, there-fore sales may continue to climb. In the West, a number of end users are willing to pay more in the short term to assure cover-age of butter needs for Q3 and Q4. Cream is tightening around the US. In the Northeast, due to the lower level of Class I processing as seasonal interest declines, some plants are securing additional cream loads when possible in the spot market. In the Cen-tral, cream headed into churns is tighten-ing somewhat, as the weather continues to heat up. In the West, Class II manufacturers are pulling large volumes of cream away from butter churns. However, cream is still available for most processing needs. Butter production is mixed. Some producers are churning to store bulk butter for later in the year, while other processors are working to sell cream and slow churns.

NORTHEAST - JUNE 21: Eastern but-ter demand is strong as print retail and food service channels’ sales activities are active. With butter in high demand, some manu-facturers are purchasing as much cream as possible. With cream’s decreasing spot mar-ket availability, multiples are strengthening. Butter production is mixed. Some churns are running at full swing to build up inventory for

future needs. However, a number of churns are shut off for maintenance and cream sup-plies are being sold.

CENTRAL - JUNE 21: Butter’s per-formance, in retail and foodservice, is out-performing previous years’ and continues to keep production facilities busy. Butter producers report that they are attempting to focus production on late summer/early fall expectations, whenever not fulfilling cur-rent orders. Cream supplies are tightening for butter producers. F.O.B cream multiples for Class IV production are at or around 1.20, and butter makers report seeing fewer offers in that range. The butter market tone is healthy, and some contacts are bullish for the near term. Global milkfat demand continues to bolster domestic butter prices.

WEST - JUNE 21: Demand for butterfat continues to be a primary driving force within the dairy industry. Western butter production is strong and focused mostly on putting away bulk butter for needs later in the year. End users’ interests ebb and flow with the fluctua-tion of market prices, but ultimately a lot of buying decisions are driven by current needs and the strong desire to assure coverage. Inventories are fairly heavy. However, indus-try contacts suggest that stocks are either committed, or manufacturers are willing to hold butter supplies until peak butter demand season in the fall and early winter.

WHOLESALE BUTTER MARKETS

NDM - CENTRAL: Central low/medium heat NDM prices slipped on both ends of the price range and decreased at the top end of the mostly price series. Low/medium heat NDM spot purchases were infrequent, although offers were aplenty. Some contacts do not foresee impactful near term weakness in the low/medium heat NDM market. Others, however, expect a steady decline, in NDM prices and futures, as NDM inventories remain readily available, while production remains active in the Central region. The low/medium heat NDM market tone is mixed. High heat NDM prices decreased on the bottom of the range. Spot market trading of high heat NDM was moderate

NDM - EAST: Low/medium heat NDM shifted down on both ends of the range and shifted lower on the top of the mostly price series this week. Spot sales showed signs of decreased prices in the market. Low/medium heat NDM production contin-ues to operate at active levels as a number

of manufacturers took in extra milk loads this week due to decreased bottling needs. Inventories are manageable to building. The demand is mixed as some market par-ticipants see high demand for low/medium heat NDM, and others see prices poten-tially weakening, so they are holding off on purchasing. The market undertone is steady, with signs of weakness. High heat NDM prices slightly decreased on the bot-tom of the range this week.

NDM - WEST: F.O.B. spot prices for western NDM moved lower at the top of the range and both ends of the mostly price series. Some industry contacts report that the change in prices could be due to lower than expected sales into the Mexi-can market. A number of reports say that manufacturers and buyers are not finding a consensus on the price of NDM. Most buyers are hesitant to buy at prices in the top of the mostly price series, while pro-cessors are reluctant to sell at the bottom of the mostly price series.

DRY DAIRY PRODUCTS - JUNE 22

OCEANIA CHEDDAR & BUTTER MARKETSCHEDDAR - JUNE 22: Cheddar cheese prices in Australia are slightly lower. Aware-ness of high cheese stocks in the US and an increasing focus on cheese production in Europe have resonated in Oceania. There are also expectations that a major coop manufac-turer of cheese will offer higher volumes on the GDT in the coming year. With the preceding factors, in addition to prices in Oceania remaining near record levels for 2016-2017, a slight price dip this period is not of great concern.

39% MAXIUMUM MOISTURE: 3,600 - 4,000

BUTTER - JUNE 22: Oceania butter prices are higher, but below levels in Western Europe. Nevertheless, Oceania prices are at a 2016-2017 high. The continuing strength in demand and pricing for dairy fats keeps driving butter prices. This is expected to continue for the immediate future. Some Oceania observers also noted the “pull” factor that higher Western European prices are having on butter prices in Oceania.

82% BUTTERFAT: 5,500 - 6,050

FLUID MILK & CREAM - JUNE 22NATIONAL: Milk output varies from region to region. Milk production in the Southeast and Southwest US is down, as temperatures are above ideal levels for cows’ comfort. Steadiness prevails for milk producers in New England, the Mid-Atlantic and New Mexico. Midwest, Pacific Northwest, and mountain state milk output is still strong. Midwestern contacts suggest milk yields are slightly under flush levels.

EAST: New England and Mid-Atlantic milk production volumes are steady to lower in some areas. While a surge of heat moved through Vermont, heavy shower activity occurred in some of the Atlantic coast states. Processors report more than adequate amounts of milk moving into production in some instances. Balancing operations are seeing an uptick in milk intakes this week, but volumes are not burdensome. Overall, Class I sales are steady to lower as schools continue to finish up for summer. Southeast milk production edged lower as a recent heatwave in some areas takes a toll on cow comfort. Processing plants are able to satisfy contractual customer needs, as the declines in bottling orders add to milk receipts

CENTRAL: Milk output has eased a bit in the Midwest. The warmer temperatures have brought milk yields down to less-than-flush volumes. However, milk is still available for vari-ous processing channels. Class I facilities are limiting production during school breaks, and some facilities plan to take some time off for the Fourth of July. Although current Class III intakes are steady, there is concern that cheese producers, with weakening cheese and whey prices, will cut back on milk intakes. Currently, spot milk is flowing into cheese vats at $1.00 to $4.00 under Class. Cream demand, from Class II, III and IV producers, is increasing. Butter producers are planning to store butter for the early fall peak and continue to see strong retail and foodservice sales. Cream intakes, from ice cream manufacturers, have increased alongside the temperatures.

WEST: In California, milk production at the farm level flattened compared to last week. Hotter temperatures across the state are impacting milk output. They are also melting snow in the mountains. With most schools closed, bottlers have reduced their daily milk intakes. Balancing plants are taking in additional milk to help clear any unused milk by bottlers. Alfalfa fields are making excellent progress, and they are being cut and baled. Extreme hot weather is negatively affecting farm milk output in Arizona. This week, milk yield is trending down. Bottling demand has scaled back due to most educational institutions being on vacation. Milk production in New Mexico is dropping. The Southwest part of the state is experiencing warmer weather conditions that are taking a toll on cows’ well-being. Some contacts suggest that milk production will continue to decline, as the weather heats up.


CME CASH PRICES - JUNE 19 - JUNE 23, 2017Visit www.cheesereporter.com for daily prices

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

MONDAY $1.3500 $1.5975 $2.5600 $0.9050 June 19 (-3) (-1¾) (NC) (-½)

TUESDAY $1.3375 $1.5975 $2.6300 $0.8900 June 20 (-1¼) (NC) (+7) (-1½)

WEDNESDAY $1.3575 $1.5600 $2.5850 $0.8600 June 21 (+2) (-3¾) (-4½) (-3)

THURSDAY $1.3400 $1.5450 $2.5850 $0.8425 June 22 (-1¾) (-1½) (NC) (-1¾)

FRIDAY $1.3700 $1.5400 $2.5900 $0.8475June 23 (+3) (-½) (+½) (+½)

Week’s AVG $1.3510 $1.5680 $2.5900 $0.8690 Change (-0.0520) (-0.0590) (-0.0210) (-0.0365)

Last Week’s $1.4030 $1.6270 $2.6110 $0.9055AVG

2016 AVG $1.5400 $1.5130 $2.3580 $0.8900Same Week

MARKET OPINION - CHEESE REPORTER

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

‘05 14.38 13.93 13.87 14.34 13.39 13.62 14.01 12.99 14.23 13.72 12.69 13.26‘06 12.56 11.14 10.49 10.43 10.48 10.65 10.28 10.8 11.87 11.40 12.32 12.37‘07 12.47 13.20 14.13 15.20 18.05 21.18 20.54 19.41 19.34 17.65 19.75 18.58 ‘08 16.91 17.54 16.94 16.79 18.66 19.12 17.77 16.14 16.63 16.63 15.14 13.95‘09 9.02 10.11 10.45 10.41 9.54 9.52 9.39 11.29 11.40 12.69 13.76 15.04‘10 12.72 12.95 11.13 12.30 12.40 12.23 13.37 14.39 15.48 15.66 13.14 12.22‘11 12.49 16.92 16.76 14.34 14.74 18.79 19.35 18.60 16.63 15.78 17.19 15.14‘12 14.23 13.42 13.67 13.43 13.56 14.65 15.18 16.57 17.50 19.43 18.48 16.30‘13 15.84 15.41 15.02 16.92 17.20 15.91 15.65 16.32 16.65 16.82 17.30 18.03‘14 20.31 21.14 22.16 21.73 19.34 19.07 18.69 19.96 22.39 20.94 18.70 14.78‘15 13.75 13.78 13.97 14.22 14.63 15.55 14.98 15.74 14.94 14.75 14.32 12.90‘16 13.72 13.05 13.24 12.71 11.37 13.03 14.67 16.34 15.24 14.43 17.45 16.59‘17 15.99 15.81 13.76 14.30 15.25

HISTORICAL MILK PRICES - CLASS 4B

Cheese Comment: Monday’s block market activity was limited to an uncovered offer of 1 car at $1.5975, which reduced the price. Tuesday’s block market activity was limited to an offer-based sale of 1 car at $1.5975, which left the price unchanged. Three cars of blocks were sold Wednesday, the last 2 at $1.5600, which lowered the price. Two cars of blocks were sold Thursday, both on offers, the last at $1.5450, which reduced the price. Seven cars of blocks were sold Friday, all on offers, the last at $1.5400, which lowered the price. The barrel price declined Monday on offer-based sales of 6 cars at $1.3500, fell Tuesday on offer-based sales of 2 cars at $1.3375, increased Wednesday on an uncovered offer of 1 car at $1.3575 (following a sale at $1.3625), fell Thursday on offer-based sales of 3 cars at $1.3400, and rose Friday on an uncovered offer of 1 car at $1.3700 (following a sale at $1.3750).

Butter Comment: The butter price increased Tuesday on an offer-based sale of 1 car at $2.6300, declined Wednesday on bid-based sales of 2 cars at $2.5850, and rose Friday on an unfilled bid for 1 car at $2.5900.

WHEY MARKETS - JUNE 19 - JUNE 23 , 2017


RELEASE DATE - JUNE 22, 2013

Animal Feed Whey—Central: Milk Replacer: .3000(-3¾) – .4800(-½)

Buttermilk Powder: Central & East: .8400(+1) – .9100(NC) West: .8300(NC) - .9400(NC) Mostly: .8800(NC) - .9200(NC)

Casein: Rennet: $2.7000(-25) – $3.0000(-10) Acid: $3.4000(NC) - $3.6500(-5)

Dry Whey—Central (Edible): Nonhygroscopic: .3500(NC) – .5500(-4) Mostly: .4000(NC) – .4850(-1½)Dry Whey–West (Edible): Nonhygroscopic: .4000(NC) – .5200(NC) Mostly: .4100(NC) – .4700(NC)

Dry Whey—NE: .3900(-2) — .5325(+3¼)

Lactose—Central and West: Edible: .3200(NC) –.5500(NC) Mostly: .3500(+1) –.4400(NC)

Nonfat Dry Milk —Central & East: Low/Medium Heat: .8700(-1) – .9800(-2) Mostly: .9000(NC)–.9600(-½)

High Heat: .9900(-2½) - $1.0000(NC)

Nonfat Dry Milk —Western: Low/Medium Heat: .8500 (NC) – .9700(-1) Mostly: .8800(-2) –.9600(-½) High Heat: .9800(NC) - $1.0900(-1)

California Weighted Average NFDM: Price Total Sales June 16 $0.8973 6,496,276 June 9 $0.8943 5,747,252 Whey Protein Concentrate—Central and West: Edible 34% Protein: .7500 (NC) – 1.2350 (NC) Mostly: .8000 (-2) – .9950(NC)

Whole Milk—National: 1.3000 (NC) – 1.5500 (NC) Visit www.cheesereporter.com for dairy and historical cheese, butter, and whey prices ®

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1705CheeseOverview_ChRptr.indd 1 12/9/16 11:06 AM

Petition Asks FDA(Continued from p. 1)

of the 2015 Dietary Guidelines Advisory Committee (DGAC), FDA proposed to establish a Daily Recommended Value (DRV) of 50 grams for added sugars and man-dated labeling of percent DRV of added sugars on Nutrition Facts and Supplement Facts labels.

In its petition, NPA offered two points for consideration on the DRV for added sugars. First, FDA should have offered the DV addition of added sugars in the pro-posed rule for proper public notice and comment rather than merely including and incorporating the DGAC’s recommendations into the food labeling final rule.

Second, FDA set an “unprec-edented standard” by using only DAGC recommendations to develop the 50-pgram DRV for added sugars. Previous changes made by FDA to the DRV have been the result of recommenda-tions made by several scientific and health organizations.

FDA’s own consumer studies do not support the addition of added sugars to the Nutrition Facts and Supplement Facts labels, the peti-tion stated. The agency relied upon consumer studies to sup-port its reasoning for including a new declaration for added sugars with a percent DRV on Nutrition

Facts and Supplement Facts labels, but those studies “do not support FDA’s position” in the food label-ing final rule.

NPA also challenged the final rule’s new definition of dietary fibers, saying it was selective, inconsistent and unsupported by scientific evidence.

Also, FDA failed to evaluate the economic impact of its food labeling final rule and its guidance documents, the NPA petition noted. Executive Orders 13563 and 12866 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regu-lation is necessary, to select regu-latory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distribu-tive impacts, and equity).

“We are heartened by the admin-istration’s pledge to weed out bad regulations that only end up cost-ing consumers more money, and this one is exhibit A,” commented Daniel Fabricant, NPA president and CEO. “This rule was poorly written, rushed, unnecessary, and should be shelved immediately.

“Labeling is extremely impor-tant, but labeling changes posed by FDA must be material and based on scientific evidence or consumer empirical studies and not based on whim or the way the wind happens to be blowing,” Febricant added.

Documents

W o r l d ' s DairyI t h W S l y CHEESE REPORTER 23, 2017.pdf · missioner should grant its petition. First, the petition says imple-mentation of the Nutrition Facts final rule is