opportunities for u.s. dairy growing in mena regionu.s. dairy business conference on nov. 6, hosted...
TRANSCRIPT
Industry eagerly awaiting fi nal farm bill languageWASHINGTON — As the House and Senate farm bill conference com-mittee continues to work on resolving differences between the two chambers’ versions of the legislation, dairy industry stakeholders this week voiced concerns on differences between the two bills’ dairy titles.
The two bills differ on revisions to the dairy producer safety net as well as the level of cuts proposed to the Supplemental Nutrition Assistance Program (SNAP), two issues of contention in the road ahead for lawmakers.
Rep. Frank Lucas, R-Okla., chair of the House Agriculture Commit-tee and chair of the farm bill conference committee, last week came out in opposition to the Dairy Market Stabilization Program (DMSP) included in the Senate version of the farm bill. The proposed program would limit milk production in times of low producer margins. The House bill does not include the program in the dairy title.
Incoming NMPF president urges more engagement from farmers PHOENIX — The incoming president and CEO of the National Milk Producers Federation (NMPF) this week urged dairy farmers to become more engaged in the organization and the policymaking process.
“We need your fi nancial commitment, yes,” Jim Mulhern, chief operating offi cer, NMPF, told nearly 1,000 attendees at this week’s joint annual meeting of NMPF, the National Dairy Promotion and Re-search Board (NDB) and United Dairy Industry Association (UDIA), held Nov. 11-13 in Phoenix. “But even more importantly, we need your time and effort and engagement. The more engagement our members have ... the more our organization can achieve for our members. It’s a virtuous circle.”
Mulhern will take over as NMPF president and CEO Jan. 1 when long-time leader Jerry Kozak retires.
“Thirty years ago, NMPF, like many organizations, could be a neatly defi ned hierarchy and be successful ... but not anymore,” Mulhern says, noting that today both NMPF and the entire dairy industry must be more engaged in the free and rapid fl ow of information.
“If there’s a message I can leave with you today, it’s that the future of NMPF is not a function of what I want ... or any one leader,” he says. “Rather, the successful future of NMPF will be a function of the ac-tive engagement that our board, our delegates and yes, our grassroots members, have in the organization and the industry.”
Mulhern also stresses the need for increased transparency in the dairy industry.
“Look at how food marketers have increased the fl ow of information about their products,” he says. “Twenty years ago, it was calorie and nutrition information on the back panel. Ten years ago, it was absence claims about artifi cial sweeteners and growth hormones. And now, it’s whether a product is locally and sustainably produced. Whether it can be traced back from the store to a fi eld or barn.”
Volume 33 November 15, 2013 Number 43
Editor’s note: Cheese Market News’ Senior Editor Alyssa Sowerwine recently took part in a trade mission to Dubai, United Arab Emirates, with the U.S. Dairy Export Council. This is the fi rst in a series of articles highlighting challenges and opportunities for U.S. dairy in the rapidly developing Middle East and North Africa market.
By Alyssa Sowerwine
DUBAI, United Arab Emir-ates — Dairy has long been a traditional part of the diet in the Middle East, where people have a history of consuming white cheese, yogurt, butterfat and milk powder. With a rap-
Opportunities for U.S. dairy growing in MENA region
idly growing youth population, rising per capita income and a growing middle class, now more than ever the Middle East and North Africa (MENA) region is emerging as a key area of growth potential for U.S. dairy products.
A group of dairy industry representatives — comprised of Dairy Management Inc. board members and dairy producers Glen Easter, Laurens, S.C., chair of the Southeast United Dairy Industry Association; Ray Prock Jr., Denair, Calif., National Dairy Promotion and Research Board member; Jim Reid, Ovid, Mich., Michigan Milk Producers Association board member; and Larry Shover, Delhi, Iowa, chair of the Midwest Dairy Association; and dairy trade journalists Alyssa Sowerwine, senior editor of Cheese Market News, Middleton, Wis., and Corey Geiger, managing edi-tor of Hoard’s Dairyman, Fort Atkinson, Wis. — traveled to Dubai, United Arab Emirates (UAE), Nov. 2-6 with the U.S. Dairy Export Council (USDEC) to learn more about the growing opportunities for U.S. dairy in the MENA market.
Mark O’Keefe, USDEC vice president of editorial services, led the group along with Middle East USDEC Director Nina
Bakht Halal. Other USDEC offi cials including Tom Suber, president; Marc Beck, execu-tive vice president of strategy and insights; Ross Christieson, senior vice president of market research and analysis; Vikki Nicholson, senior vice presi-dent of global marketing; Amy Foor, director of export market-ing programs; Angelique Hol-lister, vice president of cheese and consumer products; and Kristi Saitama, vice president of export ingredients, also were on site to participate in the fi rst U.S. Dairy Business Conference on Nov. 6, hosted by USDEC.
On Nov. 3, Halal provided dairy trade mission partici-pants with a comprehensive overview of the challenges and opportunities available to U.S. dairy industry stakeholders in the Middle East.
Agriculture is limited in the MENA region due to lack of water and arable land, and food security is a major concern, Ha-lal says. The region relies heavily on food imports, and its central location makes it easily acces-sible by major global players.
The MENA region is the second-largest dairy importing region in the world, with 1.2 mil-lion metric tons of dairy products imported in 2011. The region also
relies heavily on dairy imports as raw materials for production. Most of the milk that is produced in the region goes to fl uid and fresh dairy product production, leaving opportunities for imports of cheese, whey and milk powder, USDEC says.
The European Union cur-rently is the leading supplier to the Middle East, with a market share across the region of about 50 percent. Oceania supplies another 20-25 percent, while the United States accounts for 10-13 percent of overall imports on a milk-equivalent basis, according to USDEC. However, U.S. export value to MENA has grown 89 percent over the last fi ve years to $431 million in 2012.
Halal highlighted several key regions with rapid MENA dairy industry growth. Of the Gulf Cooperation Council (GCC) countries, Saudi Arabia is the largest producer of milk and dairy products, followed by the UAE and Oman. Egypt’s produc-tion is relatively fragmented, but modern commercial farms are gaining ground. Iran’s dairy industry is one of the most ex-tensive sub-sectors in Iranian agriculture, while in Algeria, increasing dairy production is
Swiss Valley wins top honors at NMPF contest for Gouda
Turn to MENA, page 15 D
Turn to FARM BILL, page 14 D
PHOENIX — Swiss Valley Farms, Faribault, Minn., was awarded the Chairman’s Plaque at the 2013 National Milk Producers Federation (NMPF) Championship Cheese Contest for Jeff’s Select Gouda. The Gouda also earned fi rst place in the Unique or Flavored category.
The award for “Best Ital-ian” was given to Associated Milk Producers Inc. (AMPI), Turn to RESULTS, page 14 DTurn to MEETING, page 16 D
Scan this code for breaking news and the latest markets!
) Guest column: ‘Cheese prices poised to be lower in 2014 … or will they?’ For details, see page 4.
) IDFA holds offi cer elections. For details, see page 6.
) Retail WATCH Exclusive: Tillamook unveils redesigned packaging, plans new products. For details, see page 7.
) USDA ups ’14 milk forecast. For details, see page 15.
INSIDE
Reprinted with permission from the Nov. 15, 2013, edition of CHEESE MARKET NEWS®© Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
2 CHEESE MARKET NEWS® — November 15, 2013
DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions.
MARKET INDICATORS
STAFF SUBSCRIPTION INFORMATION
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e-mail: [email protected] Sowerwine, (PH 608/288-9090; FAX 608/288-9093) e-mail: [email protected]
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REGULAR CONTRIBUTORSJohn Umhoefer, Downes-O'Neill LLC, International Dairy Foods Association, National Milk Producers Federation
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CLASS III PRICE (Dollars per hundredweight, 3.5% butterfat test)
YEAR2007200820092010201120122013
JAN13.5619.3210.7814.5013.4817.0518.14
FEB14.18 17.03 9.31 14.2817.0016.0617.25
MAR15.0918.0010.4412.7819.4015.7216.93
APR16.0916.7610.7812.9216.8715.7217.59
MAY17.6018.18 9.8413.3816.5215.2318.52
JUN20.1720.25 9.9713.6219.1115.6318.02
JUL21.3818.24 9.9713.7421.3916.6817.38
AUG19.8317.3211.2015.1821.6717.7317.91
SEP20.0716.2812.1116.2619.0719.0018.14
OCT18.7017.0612.8216.9418.0321.02 18.22
NOV19.2215.5114.0815.4419.0720.83
DEC20.6015.2814.9813.8318.7718.66
(These data, which include government stocks and are reported in thousands of pounds, are based on reports from a limited sample of cold storage centers across the country. This chart is designed to help the dairy industry see the trends in cold storage between the release of the National Agricultural Statistics Service’s monthly cold storage reports.)*Numbers unavailable due to the government shutdown.
ButterCheese
10,825102,927
-1,029-2,482
8,606117,301
-1,201-3,170
+2,219-14,374
-10 -3
Weekly Cold Storage Holdings November 11, 2013 On hand Week Change since Nov. 1 Last Year Monday Change Pounds Percent Pounds Change
Monday Tuesday Wednesday Thursday Friday
Chicago Mercantile Exchange
Nov. 11 Nov. 12 Nov. 13 Nov. 14 Nov. 15
Weekly average (Nov. 11-15): Barrels: $1.7660(-.0570); 40-lb. Blocks: $1.8125(-.0740).Weekly ave. one year ago (Nov. 12-16, 2012): Barrels: $1.7880; 40-lb. Blocks: $1.8540.
Cheese BarrelsPriceChange
Cheese 40-lb. blockPriceChange
Extra Grade NDMPriceChange
Grade A NDMPriceChange
Weekly average (Nov. 11-15): Extra Grade: $1.8820(+.0200); Grade A: $1.9610(+.0410).
Grade AA ButterPriceChange
Class II Cream (Major Northeast Cities): 2.1020(+.0817)–2.3044(+.1794).Weekly average (Nov. 11-15): Grade AA: $1.6105(+.0535).
$1.6050+2
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Cash prices for the week ended November 15, 2013
$1.7700 -1 1/4
$1.8025 -2
$1.8700NC
$1.9500+1/2
$1.5850+2 1/4
$1.7600 NC
$1.8150 +1 1/4
$1.6500+4 1/2
$1.9000 +3
$1.9750+1 1/2
$1.6500NC
$1.9000 NC
$1.9750NC
$1.7575 -1/4
$1.8200 +1/2
$1.7600 -1
$1.8025 NC
$1.8700 NC
$1.9600 +1
$1.7825 NC
$1.8225 NC
$1.8700NC
$1.9450+1 1/4
$1.5625+1/4
Dry Products* November 15, 2013
DRY BUTTERMILK(FOB)Central & East: $1.7400(-1)-$1.8500.(FOB) West: $1.7200-$1.8800(+3); mostly $1.7400-$1.7650(+1 1/2).
EDIBLE LACTOSE(FOB)Central and West: $.4300(-2)-$.7400; mostly $.5650(-1/2)-$.7200.
NONFAT DRY MILKCentral & East: low/medium heat $1.8900(+1)-$1.9800(+1); mostly $1.9000(+1)-$1.9400(+1). high heat $1.9500(-1)-$2.0000(+1 3/4)West: low/medium heat $1.8500(+3)-$1.9500; mostly $1.8800-$1.9200(+1). high heat $1.9500(+1/2)-$2.0400(+4 1/2).Calif. manufacturing plants: extra grade/grade A weighted ave. $1.8634(+.0244) based on 8,247,051 lbs. Sales to CCC: 0 lbs.
WHOLE MILK POWDER (National): $1.9000-$2.0800(+1).
DRY WHEYCentral: nonhygroscopic $.4700-$.6200(+1); mostly $.5200-$.5650(+1/2).West: nonhygroscopic $.5300(+1)-$.6000(+3/4); mostly $.5400-$.5950(+1/2).(FOB) Northeast: extra grade/grade A $.5400-$.6300(+2).
ANIMAL FEED (Central): Whey spray milk replacer $.4050-$.5425(+2 1/4).
WHEY PROTEIN CONCENTRATE (34 percent): $1.4200(-3)-$1.7400(+3 1/2); mostly $1.5450(+2)-$1.6550(+3).
CASEIN: Rennet $4.7000-$5.0000; Acid $4.8000-$5.4000.
*Source: USDA’s Dairy Market News
Total Contracts Traded/Open Interest Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.
NOV13DEC13JAN14FEB14MAR14APR14MAY14JUN14JUL14AUG14SEP14OCT14NOV14DEC14
CHEESE FUTURES for the week ended November 14, 2013 (Listings for each day by month, settling price and open interest)
1.8621.7721.7211.6841.6751.6651.6601.6811.7151.7151.7341.7301.7311.723
1,5181,513
958724756626613586268288277261266241
78/8,895
Fri., Nov. 8 Mon., Nov. 11 Tues., Nov. 12 Wed., Nov. 13 Thurs., Nov. 14
1.8621.7701.7201.6841.6751.6651.6601.6801.7131.7181.7351.7301.7311.725
1,5131,504
946724756622609581264281273261266241
171/8,841
1.8621.7851.7251.6841.6741.6701.6651.6811.7151.7151.7341.7301.7311.723
1,5181,517
959724758627612586269285277261266241
36/8,900
1.8621.7631.7011.6751.6681.6671.6641.6841.7201.7261.7351.7301.7311.725
1,4931,503
914713742616602565259276268256261236
112/8,704
1.8621.7821.7171.6851.6721.6671.6641.6821.7201.7241.7351.7301.7311.725
1,4991,504
916717742616602573259276268256261236
31/8,725
Total Contracts Traded/Open Interest
NOV13DEC 13JAN14FEB14MAR14APR 14MAY14JUN14JUL14AUG14SEP14OCT14NOV14DEC14
DRY WHEY FUTURES for the week ended November 14, 2013 (Listings for each day by month, settling price and open interest)
57.3357.3356.7556.7556.5055.7855.2554.0353.2553.2551.7551.0051.2550.03
263280247238280180185222109
7955354554
3/2,272Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.
Fri., Nov. 8 Mon., Nov. 11 Tues., Nov. 12 Wed., Nov. 13 Thurs., Nov. 14
12/2,250
57.5058.0057.5057.5056.5355.8055.2554.0353.2553.2551.7551.0051.2550.03
263277247238285181185222109
7960354554
31/2,280
57.2857.3356.7556.7556.5055.7855.2554.0353.2553.2551.7551.0051.2550.00
263280247238280180185220109
7955354554
57.2357.2057.0057.0056.0055.0054.7553.9053.0053.0051.0051.0050.5050.00
265280242238275178183219104
7855344554
36/2,270
57.5357.2557.2557.0056.2555.2555.0354.0353.2553.0351.5051.0050.5350.00
262280244237275178183219109
7855344554
20/2,253
Reprinted with permission from the Nov. 15, 2013, edition of CHEESE MARKET NEWS®© Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
November 15, 2013 — CHEESE MARKET NEWS® 3
DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions.
For more information please visit www.devilletechnologies.com
NEWS/BUSINESS MARKET INDICATORS
CHICAGO — The International Dairy Foods Association (IDFA) announced the winners of the second annual In-novations Awards at the International Dairy Show in held here last week.
One winner was selected in each of five categories — food safety, ingredients/flavorings/seasonings/additives, packaging, processing and sustainability — and attendees voted during the show to select the winner of the attendee choice award.
IDFA has named the following winners:
• ExtenData received the food safety innovation award for its Mobile-Conductor, a comprehensive mobile supply chain software that allows dair-ies, processors and marketers to track and trace milk from farm to store as it travels across the country, improving safety throughout the entire transport.
• Saputo Cheese USA Inc. earned the ingredients/flavorings/season-ings/additives innovation award for its Treasure Cave Crumbled Blue Cheese Flavors. Saputo brings home the newest menu trends with four new bold flavors of crumbled blue cheese: buffalo wing, southeast smoked, chi-potle pepper and southwest chipotle & black bean.
• Curwood Inc. received the pack-aging innovation award for its EZ Peel Reseal technology, which provides makers of chunk, sliced or snack cheeses with peel/reseal convenience in 100-percent flexible packaging with films as low as 3 millimeters thick.
• Junction Solutions earned the processing innovation award for its Blend Optimizer, which automates batching, blending and mixing op-erations and determines the best combination of ingredients for the
IDFA names winners of Innovations Awardsmost effective utilization of material resources.
• Quest Industrial LLC received the innovative sustainability award for the Quest Pro Pick Pack, an intuitive three-in-one robotic cell that produces a box, picks the product and packs it all in one compact cell that is customizable to fit any facility’s needs.
• Sargento Foods Inc. received the attendee choice award for its Ultra Thin Sliced Natural Cheeses, which have 45 calories or fewer per slice but are cut from the same cheese as Sargento’s sliced natural cheese. The Ultra Thin slices contain half the calories of traditionally sliced cheeses.
Each of the winning entries ex-emplified substantial achievements in price or performance, significant advancement in a technology or in-novative design. To be eligible for an award, the products or services must have been introduced to the market during the past 12 months.
“Exhibitors place a great deal of em-phasis on innovation when they exhibit at the International Dairy Show, and these awards provide another targeted opportunity for exhibitors to bring their products and services to the atten-tion of the dairy industry,” says Robin Cornelison, trade show director, IDFA. “All companies that entered products or services, especially the winners, will gain added recognition from peers and potential customers for their innova-tive products and services.”
Posters featuring the submissions were on display near the Innovations Showcase Pavilion at the International Dairy Show. Award winners will be fea-tured in an upcoming edition of Dairy Foods magazine, which cosponsors the awards with IDFA. CMN
Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. *Total Contracts Traded/Open Interest reflect additional months not included in this chart.
Total Contracts Traded/Open Interest
Cash-Settled NDM*
NOV13DEC13JAN14FEB14MAR14APR14MAY14JUN14JUL14AUG14SEP14
NOV13DEC13JAN14FEB14MAR14APR14MAY14JUN14JUL14AUG14
Total Contracts Traded/Open Interest
187.90190.00183.25179.03173.90166.50164.88164.00157.95158.83159.50
188/2,664
154.00150.25149.13147.95149.53151.25152.05153.45155.03155.50
182/4,643
Fri., Nov. 8 Mon., Nov. 11 Tues., Nov. 12 Wed., Nov. 13 Thurs., Nov. 14
Total Contracts Traded/Open Interest
Fri., Nov. 8 Mon., Nov. 11 Tues., Nov. 12 Wed., Nov. 13 Thurs., Nov. 14NOV13DEC13JAN14FEB14MAR14APR14MAY14JUN14 JUL14AUG14SEP14OCT14NOV14DEC14JAN15
Class III Milk
18.8518.0117.3517.0316.8616.7816.7016.8017.0617.0717.1417.1217.0816.9516.28
1,080/22,684
Total Contracts Traded/Open Interest
Class IV Milk
NOV13DEC13JAN14FEB14MAR14APR14MAY14JUN14JUL14AUG14SEP14OCT14NOV14DEC14
20.5920.5619.9019.4819.0618.5018.4418.4218.0518.0018.0818.0518.0517.98
468/5,769
CME FUTURES for the week ended November 14, 2013
Fri., Nov. 8 Mon., Nov. 11 Tues., Nov. 12 Wed., Nov. 13 Thurs., Nov. 14
350379429385302212197182
433645
1,193832542489387323292228103
73
709784896821679434442359146129130
858174
Fri., Nov. 8 Mon., Nov. 11 Tues., Nov. 12 Wed., Nov. 13 Thurs., Nov. 14
Cash-Settled Butter*
4,2384,2222,3301,9861,7181,4231,4361,229
742721764599568495
11
18.8017.9717.3717.0516.9016.7616.6816.7917.0417.0317.1217.1117.0716.9516.28
20.5420.3919.7919.3618.9818.3818.3418.3918.0518.0118.0818.0418.0017.98
707777861783588380389333142117125827974
187.63188.00181.25177.25172.93164.98164.45163.00157.95158.83159.50
349384417365264185177166
433645
154.00150.00149.00148.50149.80151.75151.88154.00155.03155.50
1,193833533479340312242216
9773
1,783/22,482
154/5,437
72/2,535
54/4,494
4,4504,1912,2891,8721,6951,3921,4081,201
70972074658355349111
18.7817.8917.1616.9416.8716.7216.6916.8117.0717.1417.1617.1517.1216.9716.28
1,305/22,311
20.4920.3319.7019.1718.9018.3818.3318.4018.0318.0118.0918.0418.0017.99
708766825747532364384331138117124
827974
93/5,271
187.50187.95180.50176.00172.65164.50163.53163.00159.48158.83159.50
342371408356253181176166
423645
21/2,480
154.00150.25149.13148.50149.75151.50151.50154.00155.10155.50
1,198834520465330306237216
9673
69/4,450
1,152/22,751
4,0144,2292,4162,0211,8531,4571,4951,249
77374977660958151811
20.5720.6820.0919.6519.2418.6018.4618.4218.0518.0018.0818.0518.0517.98
211/5,878
709784917855715438451364146129130
858174
187.50190.00184.50180.00175.00167.40164.90164.13157.95158.83159.50
92/2,754
372392440401323212198182
443746
154.00153.03150.95150.28149.55151.25152.05153.45155.03155.50
107/4,667
1,189824553512392324294222103
73
4,1354,2152,3712,0071,8131,4401,4561,246
772745773608578514
11
4,4224,2112,3131,9491,7081,3991,4111,208
713721748585554498
11
18.8218.0917.3517.0416.9216.7816.7416.8617.0817.1017.1517.1517.0916.9816.28
959/22,451
20.5020.3519.7419.3019.0018.3918.3318.4018.0318.0118.0818.0418.0017.98
707766835769553375386331138117125
827974
116/5,337
187.65187.95181.00176.88172.85164.63163.53163.00159.48158.83159.50
344371414360258184176166
423645
45/2,500
153.68150.25149.13148.50149.53151.50151.75154.00155.10155.50
1,195835525468331310242216
9673
40/4,466
18.8318.1017.4517.0416.8516.8216.7616.9017.0617.0717.1417.1317.1516.9716.28
National Dairy Products Sales Report
Cheese 40-lb. Blocks:
*/Revised. 1/Prices weighted by volumes reported. 2/Sales as reported by participating manufacturers. Reported in pounds. More information is available by calling AMS at 202-720-4392.
Average price1 Sales volume2
Cheese 500-lb. Barrels:Average price1
Adj. price to 38% moistureSales volume2
Moisture content Butter:
Average price1
Sales volume2 Nonfat Dry Milk:
Average price1 Sales volume2
Dry Whey:Average price1 Sales volume2
For the week ended: 10/26/13
$1.797612,408,028
$1.8820$1.7999
9,700,01135.17
$1.52392,183,772
$1.845515,482,888
$0.56048,834,536
$1.8248*11,474,162
$1.9035$1.8203
9,523,77335.17
$1.49492,718,739
*$1.861511,407,507
*$0.5800*6,304,542
11/2/13 10/19/13
$1.788910,861,148
$1.8509$1.7692
*10,163,12235.14
$1.56773,537,562
$1.843215,790,269
$0.57136,998,738
$1.856910,256,672
$1.9352$1.8542
9,880,85635.29
$1.48285,152,974
$1.879913,725,868
$0.57245,751,212
11/9/13
Reprinted with permission from the Nov. 15, 2013, edition of CHEESE MARKET NEWS®© Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
4 CHEESE MARKET NEWS® — November 15, 2013
G U E S T C O L U M N I S T C M N E x c l u s i v e !
Eric Meyer is president of HighGround Dairy*, Chicago. He is a guest columnist for this week’s Cheese Market News®.
Perspective:Dairy Markets
Cheese prices poised to be lower in 2014 … or will they?
As the calendar rolls toward the end of another year, all of us cheese market buffs will remember 2013 as one of abnormally strange peaks and valleys. Surprisingly enough, there were only six trading days (Feb. 28 to March 7) this year where Chicago Mercantile Exchange (CME) block Cheddar prices settled below $1.60. And unless something drastic happens next month, 2013 will be the fi rst time in history a single monthly CME block cheese average did not come in below $1.60. At the same time, this will also be the fi rst time since 2010 that $2.00+ was not seen in a monthly average. Because of these two facts above, 2013 will likely mark the least volatile year for CME block Cheddar prices (using monthly averages) since 1988. But for those keeping score on overall cheese costs for the year, 2013 will be the fourth highest on record.
Milk production growth was chal-lenged by extremely high feed costs for the fi rst half of the year and likely pre-vented cheese prices from collapsing in the fi rst quarter. New Zealand’s drought sent U.S. cheese markets sharply higher
between March and early May but made two more peaks and valleys during the summer months as exports spiked and a mild August brought on an unexpected surge in milk and cheese production. And after a typical top was put in during late October aided by a longer export tail, the U.S. cheese market appears to be rolling back on a seasonal decline to close out the year.
Industry analysts are expecting stronger global milk production in 2014 due to vastly improved on-farm margins. And in turn, U.S. cheese prices are poised to be lower next year. Or will they? I am also one of those analysts who believes cheese prices will roll back into the $1.50s during the fi rst half of next year. But I also recognize there are a number of factors that pro-vide upside risk to that forecast in the coming months.
The historically abnormal premium Class IV milk has carried to Class III has now entered its 10th month and based on recent futures activity, continues to widen. History has shown the spread in its current state is not sustainable. Either cheesemakers will need to
compete for the milk so it doesn’t end up in a drier or nonfat dry milk (NDM) demand falls apart and sends Class IV prices lower. At present, the NDM market is on a steep upward track. But with anecdotal reports this past week of spot loads trading as high as $2.00 per pound, I have a hard time believ-ing those fi gures are sustainable for much longer. However, this is causing problems for making cheese. Any plant that uses NDM to standardize their milk has likely stopped since it fails to produce a return. This decreases cheese yields as more milk is used in the make process.
As recent as last month, Midwest milk was considered ‘tight’ because spot loads were commanding up to $3.00 per hundredweight over class for delivery to a Class III facility. Christmas typically comes early for cheesemakers around the country as excess milk during those last couple of weeks in the year needs to fi nd a home at any cost. In recent years we have heard discounts of up to $5.00 per hundredweight which provides spec opportunities for cheese manufactur-ers. That is an unlikely scenario this year with a $2.50 spread between Class IV and Class III.
Another issue that may prevent cheese prices from falling sharply at the end of the year is the spread between the U.S. and New Zealand markets. Last year, Fonterra Cheddar prices on GlobalDairyTrade (GDT) reached a low of $1.36 per pound in mid-October while CME block prices topped out at $2.12 later that month. As a result, U.S. customers imported 21.4 million pounds of New Zealand cheese last November and December. With the most recent Fonterra GDT Ched-dar price at $2.00 and the CME spot market near $1.80 (as of this writing), I expect virtually no cheese to make its way into the U.S. from Oceania for the foreseeable future.
Lastly, weather has always been an issue for milk and grain production here in the U.S., but now that we’ve become
larger players in the global market, new attention must be paid to global weather conditions. Last year the U.S. corn belt experienced a major drought that sent feed costs skyrocketing and severely crippled dairy farm margins. A 30 year drought hit New Zealand earlier this year, and poor weather in Europe had a negative impact on production there over the past 12 months. And above average temperatures this sum-mer in China likely carried some of the impact for that country’s estimated 5 percent milk production decline and extreme growth in dairy imports this year. Long-range climate forecasts are nice to look at, but like your local TV weatherman, are rarely accurate, and adverse weather conditions are diffi cult to see coming.
In conclusion, we believe a solid case can be made for lower cheese prices in 2014, especially if the extreme global dairy commodity prices in this year have done longer-term damage to demand for the upcoming year. But there are a lot of question marks and concerns along the way, so make sure to leverage the tools available (futures markets, fi xed price contracts, etc.) to your advantage in order to protect your company against those risks. CMN
The views expressed by CMN’s guest columnists are their own opinions and do not necessarily refl ect those of Cheese Market News®.
*These observations include in-formation from sources believed to be reliable, but no independent verifi ca-tion has been made and therefore their accuracy and completeness cannot be guaranteed. Opinions and recommen-dations expressed are the opinion of the authors and are subject to change without notice. The risk of loss in trad-ing futures contracts or commodity op-tions can be substantial, and investors should carefully consider the inherent risks of such an investment in light of their fi nancial condition.
NEWS/BUSINESS
ANKENY, Iowa — Proliant Dairy Inc. (a subsidiary of The Lauridsen Group Inc.) and FAGE USA Dairy Industry Inc. (a subsidiary of FAGE International S.A.) recently an-nounced a long-term agreement that will provide an outlet for the whey from FAGE’s Greek yogurt produc-tion in Johnstown, N.Y. The straining process used to make FAGE’s Greek yogurt creates the whey byproduct, which Proliant Dairy will transform utilizing its patent-pending process into a shelf-stable dry ingredient for global food and feed industries.
“We are excited about the op-portunity to partner with a company like Proliant Dairy that looks for
Proliant, FAGE sign whey processing dealinnovative ways to create value by converting our whey into commer-cially viable products,” says Ionnis Ravanis, executive vice president, manufacturing and operations, FAGE USA Dairy Industry Inc.
Ankeny, Iowa-based Proliant Dairy and The Lauridsen Group process many food industry byprod-ucts into value-added food and feed ingredients.
“Proliant Dairy looks forward to its alliance with FAGE and will continue to invest in industry-leading research to further refi ne the components of whey into value-added ingredients,” says Gary Weihs, president and CEO, Proliant Dairy Inc. CMN
WASHINGTON — Current retail advertising refl ects holiday and bak-ing themes, with butter ad numbers increasing by 50 percent over two weeks ago, according to the latest biweekly National Dairy Retail Report released Thursday by USDA’s Agricultural Mar-keting Service (AMS).
National conventional butter in 1-pound packs this week had a weighted average advertised price of $2.37, down from $2.74 two weeks earlier and $2.71 one year earlier, AMS says.
Natural varieties of 8-ounce cheese blocks this week had a weighted average advertised price of $2.51, up from $2.43 two weeks earlier and unchanged from one year ago.
Retail ads refl ect holiday, baking themesAMS says this week 1-pound blocks
of natural cheese varieties had a weighted average advertised price of $3.81, up from $3.27 two weeks earlier and $3.27 one year earlier, while 2-pound blocks had a weighted average advertised price of $6.91, up from $6.29 two weeks earlier and $6.90 one year ago.
Natural varieties of 8-ounce cheese shreds this week had a weighted aver-age advertised price of $2.22, down from $2.28 two weeks earlier and $2.33 one year earlier, while 1-pound shreds had a weighted average ad-vertised price of $3.55, up from $3.05 two weeks earlier but down from $4.22 one year ago, AMS says. CMN
Reprinted with permission from the Nov. 15, 2013, edition of CHEESE MARKET NEWS®© Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
November 15, 2013 — CHEESE MARKET NEWS® 5
NEWS/BUSINESS
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MADISON, Wis. — A proposed raw milk bill in Wisconsin this week passed the Sen-ate Committee on Financial Institutions and Rural Issues.
The bill that passed is a substitute amendment to Senate Bill 236. The original bill was introduced July 31 by Sen. Glenn Grothman, R-West Bend. The substitute amendment was introduced and passed this week by a committee vote of 3-2. The Wisconsin Senate has adjourned, so further action on this bill will not take place until January.
The substitute amendment creates a Grade 1 unpasteurized milk permit issued by the Wisconsin Department of Agricul-ture, Trade and Consumer Protection that allows a dairy farmer holding the permit to sell raw milk directly to consumers on the farm.
Dairy farms holding this permit would be inspected once every two years. The quality standards for Grade 1 unpasteur-ized milk would be:
• The milk is free of Campylobacter, Salmonella, Listeria monocytogenes and E. coli O157:H7;
Raw milk bill passes Wis. Senate committee• The milk is free of antibiotic drug
residue;• The standard plate count of the milk is
no more than 10,000 bacteria per milliliter; • The somatic cell count of milk is no
more than 600,000 cells per millimeter; and• The coliform count of the milk is
no more than 10 bacteria per milliliter.A milk producer with a Grade 1 permit
would perform monthly tests for bacterial content and antibiotic residue and tests in at least four of each six consecutive months for standard plate, somatic cell and coliform counts to demonstrate compliance.
Milk producers with a Grade 1 unpas-teurized milk permit would be required to keep a frozen sample of each day’s milk production for at least 15 days. They would have to display a sign stating that raw milk may contain disease-causing pathogens, which pose a higher risk to certain individu-als. They also would be required to maintain records of their products sold and customer information that would be made available in the event of an illness or outbreak in-vestigation linked to the raw milk. CMN
WASHINGTON — USDA has asked fl uid milk processors and other inter-ested parties to nominate candidates for the National Fluid Milk Processor Promotion Board.
The secretary of agriculture will appoint seven individuals to succeed members whose terms expire June 30. Appointed members will serve 3-year terms from July 1 to June 30, 2017.
USDA will accept nominations for board representation in six geographic regions and one at-large position. Nominees for the six regional positions must be active owners or employees of a fl uid milk processor. The at-large position may be fi lled by either a processor or public member. The geo-graphic regions are: region 2 (New Jersey and New York); region 5 (Florida); region 8 (Illinois and Indiana); region 11 (Arkan-sas, Iowa, Kansas, Missouri, Nebraska and Oklahoma); region 13 (Idaho, Montana, Oregon, Washington and Wyoming); and region 14 (Northern California).
Nominees sought for milk promotion boardThe National Fluid Milk Proces-
sor Promotion Board develops and administers a coordinated program of advertising and education to promote fl uid milk products. Of the board’s 20 members, 15 represent geographic re-gions and fi ve are at-large members. The at-large members must include at least three fl uid milk processors and at least one member from the general public.
To nominate an individual, submit a copy of the nomination form and a signed background form for each nominee by Dec. 12 to: Whitney Rick, director, promotion, research and plan-ning division, dairy programs, AMS, USDA, 1400 Independence Ave., S.W., Stop 0233, Room 2958-S, Washington, D.C. 20250-0233 or via e-mail at [email protected].
To obta in forms or add i -tional information, call 202-720-6909. Blank forms are available at www.ams.usda.gov/dairy. CMN
AUCKLAND, New Zealand — Fon-terra recently acquired the assets of Tasmanian yogurt business Tamar Valley Dairy. Under the agreement, Fonterra will acquire the processing equipment, the related services, and intellectual property and trademark for the Tamar Valley Dairy brand. The acquisition is effective toward the end of November, subject to completion of the sale.
“Fonterra is a longstanding partner of Tamar Valley Dairy and has supported and worked closely with the administra-tors of the family-owned business during what has recently been a diffi cult period for the Tasmanian business and its founders,” says Judith Swales, managing director, Fonterra Australia. “The found-ing family has created a business with strong capability and innovation, known for producing new yogurt formats and formulations, and in a relatively short timeframe they have built a national brand in Tamar Valley Dairy.”
Fonterra plans to invest further to improve the manufacturing assets, upgrade quality and safety systems, invest in people in the business, and
Fonterra acquires Tasmanian yogurt brand Tamar Valley Dairy, plans to invest further
build capability for further innovation in the yogurt category.
The Tamar Valley Dairy site will be fully integrated into Fonterra’s Tas-manian and Australian manufacturing footprint, creating greater effi ciencies and scale, while ensuring that Tamar Valley Dairy’s innovation and its Tas-manian origin continues.
In Tasmania, Fonterra also operates two manufacturing facilities at Spreyton and Wynyard and is responsible for processing more than half of Tasmania’s milk. Over the last two years, Fonterra has invested $20 million in its Tasma-nian operations.
“Acquiring the Tamar Valley Dairy yogurt business is an important step in strengthening Fonterra’s strong nation-al position in the chilled dairy segment in Australia and complements our exist-ing yogurt portfolio, where we hold a market-leading position in mainstream yogurt through the Nestlé SKI brand,” Swales says. “Tamar Valley Dairy has a strong future. We see tremendous oppor-tunities to build a sustainable, competi-tive business for the long term.” CMN
KANSAS CITY, Mo. — Dairy Farmers of America’s (DFA) board of directors re-cently announced it has issued $29.6 mil-lion in patronage earnings to members of the cooperative. This allocation, which equals 7.5 cents per hundredweight, was made to members who marketed their milk through DFA in 2012.
Patronage is the cooperative’s way of sharing DFA’s earnings with its mem-bers, DFA notes. While at its core, DFA is a milk marketing cooperative, the earnings from its investments in plants and brands generate returns that allow members to share in the success of these value-added businesses.
The amount of patronage a member
DFA issues patronage earnings to farmersreceives each year is based on the amount of milk they marketed through the cooperative.
In keeping with DFA’s base capital plan, all members will receive at least 20 percent of their earnings in cash, with the balance added to their capital accounts. Those who have achieved the established base capital level will receive 100 percent of their earnings in cash. Of the $29.6 million, $8.4 million was distributed in cash and the balance was allocated to members’ equity accounts.
Since the formation of DFA in 1998, more than $490 million in patronage earnings has been allocated to the cooperative’s farmer owners. CMN
Reprinted with permission from the Nov. 15, 2013, edition of CHEESE MARKET NEWS®© Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
6 CHEESE MARKET NEWS® — November 15, 2013
For more information please visit www.cheesemarketnews.com
PEOPLE
WASHINGTON — During its fall board meetings, the International Dairy Foods Association (IDFA) and its three constituent organizations — the Milk Industry Foundation (MIF), the Na-tional Cheese Institute (NCI) and the International Ice Cream Association (IICA) — elected new offi cers and voted on new board members.
IDFA and constituent organizations hold elections for 2013-2014 offi cers, board membersLeading each association for the
next year will be IDFA Chair Patricia Stroup, head of procurement, global milk products procurement, Nestle S.A.; IDFA Vice Chair and MIF Chair Jeff Kaneb, executive vice president, HP Hood LLC; IDFA Secretary and IICA Chair Mike Wells, president and CEO, Wells Enterprises Inc.; and IDFA
PHOENIX — The National Dairy Promotion and Research Board (NDB) recently honored Elwood Kirkpatrick and Billy Travis as the 2013 recipients of the Richard E. Lyng Award.
Kirkpatrick, a producer from Kinde, Mich., and Travis, a producer from Princ-eton, Ky., were recognized during this week’s NBD/National Milk Producers Federation/United Dairy Industry As-sociation (UDIA) joint annual meeting in Phoenix.
The award is named for former USDA Secretary Richard E. Lyng, who played a key role in implementing policies that led to the establishment of NDB 30 years ago. The Lyng Award honors dairy industry leaders who have made a signifi cant contribution to dairy promo-tion that benefi ts the entire industry.
“Elwood Kirkpatrick served the dairy industry for nearly 30 years, playing an instrumental role in domestic and in-ternational dairy marketing,” says Steve Maddox, California dairy producer and outgoing chairman of NDB. “Elwood’s contributions brought effi ciencies to producer investments in promotion and found new markets for our products that are still making a difference today.”
Kirkpatrick helped to bring together the activities of NDB and UDIA through the formation of Dairy Management Inc. (DMI), which manages the national dairy checkoff through a unifi ed national program. Kirkpatrick also served as the
Kirkpatrick, Travis receive NDB Lyng awardfi rst chairman of the U.S. Dairy Export Council, where he led efforts to establish and grow the U.S. dairy export sector.
Travis also has been a dairy promo-tion leader nationally, regionally and locally since 1984. He held numerous dairy promotion leadership positions throughout the years in organizations including Mid-South Dairy and Food Nutrition Council, the American Dairy Association of Kentucky, the Southeast United Dairy Industry Association, UDIA and DMI. Throughout the years, Travis was a key voice and leader in working to ensure that checkoff dollars were lever-aged in key geographic regions where consumers reside and not necessarily where cows are milked.
“Billy’s commitment to helping grow sales across the country and ensuring that producer dollars were used in the most effi cient ways possible paved the way for today’s successes,” Maddox says. “His enthusiasm, passion and energy motivated fellow dairy producers from all areas of the country as he worked tirelessly to show producers who and why their investment in the checkoff benefi ted them.”
As part of the Richard E. Lyng award, NDB will contribute $2,500 to the Elwood Kirkpatrick Dairy Science Research Fund at Michigan State Uni-versity and $2,500 in Travis’ name to the Hutson School of Agriculture at Murray State University in Kentucky. CMN
Treasurer and NCI Chair Mike Reidy, senior vice president, corporate affairs, Leprino Foods Co.
“IDFA is extremely grateful for the industry professionals who serve as offi cers and directors, and we appre-ciate the time, resources and talents that these volunteer leaders tirelessly give to the dairy industry,” says Connie Tipton, IDFA president and CEO. “This is a pivotal time for the dairy industry, and we look forward to a dynamic and productive year ahead.”
IDFA chairmanship is open to any former leader of one of the three constituent organizations for up to a two-year term. Stroup is a former IICA chairman and sits on the IICA advisory committee. The chairmen of MIF, NCI and IICA are elected by their respec-tive board members for two-year terms.
The 2013-2014 MIF offi cers are:
Kaneb, chair; Gregg Tanner, CEO, Dean Foods Co., vice chair; David Nelsen,vice president of manufacturing, Safeway Inc., secretary; and Carmine Catalana IV, president, Cumberland Dairy Inc., treasurer.
The 2013-2014 NCI offi cers are: Re-idy, chair; Ron Dunford, president and chief operating offi cer, Schreiber Foods Inc., vice chair; Doug Simon, president of cheese & ingredients division, Agro-pur Inc., secretary; Jeff Giffi n, president and CEO, Masters Gallery Foods Inc., treasurer.
The 2013-2014 IICA offi cers are: Wells, chair; Rachel Kyllo, senior vice president of sales and marketing, Kemps LLC, vice chair; Craig Hall, general manager of ice cream, Mars Chocolate North America, secretary; and Alan Thomsen, president, Schoep’s Ice Cream Co. Inc., treasurer. CMN
NEW PRODUCTSF O R D A I R Y M A N U F A C T U R E R S
EDEN PRAIRIE, Minn. — Davisco Foods International. Inc. this week an-nounced the launch of three new ingre-dients, complementing the company’s portfolio of whey protein products for food and nutrition applications. These products will be introduced at the Davisco booth in Frankfurt, Germany, at the FIE-Food Ingredients Europe Expo Nov. 19-21.
Whey Protein Concentrate 80 Heat Stable (WPC80-HS) is an alternative to standard WPC80, containing at least 80-percent whey proteins, no more than 5-percent moisture, 10-percent lactose and 6-percent minerals, and typically 5.5-percent fat. WPC80-HS is suitable for thermally processed foods where whey protein aggregation sometimes can be an issue when used at high
Davisco launches new whey protein productslevels, including sauces, soups, bever-ages, yogurt, baked goods, confections, process cheese, processed meats, infant formula, nutrition products and others.
Instantized WPC80 IP (identity preserved) is an agglomerated whey protein concentrate containing at least 80-percent protein that offers ease of dispersability via sunfl ower lecithin, a non-GMO/identity preserved ingredient used at less than 1.5 percent in the prod-uct. While whey proteins are known for very high solubility, more rapid dispers-ability can be a benefi t in dry mixes and in certain unit operations where rapid dissolution is important, Davisco says.
Instantized BiPRO IP also offers dispersability with a non-GMO/identity preserved sunfl ower lecithin, but in a whey protein isolate made from ion-exchange with unsurpassed purity. It is fat-free and lactose-free, and as with all BiPRO whey protein isolate products, Instantized BiPRO IP provides very high solubility, clarity in solution, clean taste and high nutritional quality with at least 95 percent protein on a dry basis, Davisco says.
Davisco notes that these three new products provide the high protein quality that whey proteins are known for with rapid digestibility, a complete amino acid profi le and high levels of branched chain amino acids, including leucine. These also are useful for modifying texture and binding water in a variety of foods without sacrifi cing clean fl avor or a clean label declaration. Davisco’s whey protein spe-cialty products are available in 50-pound Kraft multiwall bags incorporating a polyethylene liner, individually closed and a shelf life of two years.
For more information, contact Davisco Foods at 952-914-0400, e-mail [email protected] or visit www.daviscofoods.com. CMN
Reprinted with permission from the Nov. 15, 2013, edition of CHEESE MARKET NEWS®© Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
CHEESE MARKET NEWS®
Retail WATCHN E W S & M A R K E T I N G I D E A S T O H E L P S E L L M O R E C H E E S E
November 15, 2013 — CHEESE MARKET NEWS® 7
Also in Retail WATCH: Emmi Roth offers new varieties … Page 10 Atalanta Corp. partners with ‘Eat!Drink!Italy!’ … Page 11
Tillamook unveils redesigned packaging, plans new products
Turn to TILLAMOOK, page 8 D
By Kate Sander
TILLAMOOK, Ore. — Tillamook County Creamery Association recently began a packaging design overhaul for its entire cheese products line.
John Russell, senior director of marketing, Tillamook, says the new look streamlines the Tillamook brand’s messaging with more product informa-tion, meaningful company insight and distinguished color schemes.
Currently rolling out in the new look are 12-ounce stacked sliced cheeses and 8-ounce shingle sliced cheeses.
Also being launched in the new design are the company’s shredded cheeses, which are simultaneously being con-verted to what is becoming a popular new look in the dairy case — stand-up pouches.
PLAYFUL PACKAGING —Tillamook County Creamery Association is launching a new packag-ing design, which includes shreds in stand-up pouches. Tillamook included a see-through cow-shaped window so consumers can see the product they are buying. Additionally, each shred fl avor has a playful message on the package bottom.
“We decided to move to the stand-up pouch for a few reasons,” Russell says. “First, it’s more sustainable as it uses 20 percent less packaging fi lm and 15 percent less corrugated material. It’s also more space effi cient as it allows one more bag per 3-foot shelf, and one more shelf per section, which translates to easier in-store restocking.”
The packaging also presents a better shelf appearance and can stand upright or hang on a peg, creating fl exibility and convenience for grocery partners, he says.
its premium ice cream bars, Tillabars, in four fl avors.
In January, Tillamook plans on launching new, high-protein Tillamook Farmstyle Greek Yogurt.
“Our new Farmstyle Greek Yogurt comes in seven fl avors in the 5.3-ounce size and three fl avors in a family-sized 32-ounce, with additional extensions to come,” says Joe Prewett, director of product management and innovation, Tillamook. Prewett, along with new CFO Linda Pearce, were hired by Tillamook this past year to assist in the co-op’s growth plans.
“This yogurt will not be as tart as other Greek yogurts because we include the use of buttermilk cultures as one of our seven different cultures. It is also
For consumers, the packaging takes up less refrigerator space and is easier to cook with. With this new stand-up packaging approach, consumers can easily grab cheese from the upright bag and avoid unnecessary messes.
To better highlight the product within, Tillamook’s shredded and sliced cheese packaging also features a see-through window in a cow shape.
“While designing the new stand-up shred bags we included the see-through window so consumers can see the prod-uct they are buying, while the cow shape is a fun nod to our farmer-owned heri-tage,” Russell says. “Additionally, each shred fl avor has a playful message on the package bottom as a Tillamook way of saying thank you, while providing the shopper a little extra excitement to use our product. For example at the bottom of our Sharp Cheddar, it reads ‘Made by some pretty sharp cows.’
“It is important for us to stay fresh and exciting for our consumers and retailers as we continue to grow,” Rus-sell adds. “We feel that this new design works harder in presenting a premium image of our high quality products while remaining relatable to all of our fans.”
To assist in the redesign, Tillamook hired local Portland design fi rms, Sand-strom Partners and Flint Design, known for their expertise with national food and beverage brands. Consumers will see remaining cheese products in the new packaging early next year. The new packaging design also will be rolled out on Tillamook’s ice cream, yogurt, butter and sour cream in 2014.
New packaging isn’t the only news at Tillamook. The co-op also has come out with several line extensions this past year, including 12-ounce Muenster stacked slices and a 9-month Sharp White Cheddar. Additionally, Tillamook Vintage White Sharp Cheddar now comes in the following sizes: loaf, 8-ounce deli cut, 1-pound loaf, 2-pound loaf and 2.5-pound loaf.
The co-op also now offers 2-pound combo packs for Tillamook Colby Jack and Tillamook Monterey Jack slices as well as Tillamook Colby Jack and Til-lamook Pepper Jack slices.
Beyond cheese, Tillamook also has several other introductions planned for 2014.
In the frozen category, Tillamook
will be expanding its offerings with two new 56-ounce ice cream fl avors (Oregon Blueberry Patch and Oregon Hazelnut and Salted Caramel). Additionally, it will be introducing a new product into the novelty category with the release of
Photo courtesy of Tillamook County Creamery Association
“While designingthe new stand-up
shred bags we includedthe see-through window
so consumers cansee the productthey are buying,
while the cow shapeis a fun nod to our
farmer-owned heritage.”
John RussellTILLAMOOK “It is important for us
to stay fresh and excitingfor our consumersand retailers as wecontinue to grow.”
John RussellTILLAMOOK
Reprinted with permission from the Nov. 15, 2013, edition of CHEESE MARKET NEWS®© Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
8 CHEESE MARKET NEWS® — November 15, 2013 R E T A I L R O U N D - U P
For more information please visit www.cheesemarketnews.com/keyplayers.html
super creamy because we slow down the straining process and use fresh cream,” Prewett says.
In addition, to follow up on its family-sized Tillamook Dessert Yogurt options launched in 2013, Tillamook also is launching 5-ounce Dessert Yogurt cups in at least four fl avors mid-2014. Tillamook Dessert Yogurt is a creamy, rich, premium yogurt that serves as a healthier treat option for any occasion. The dessert line is naturally made with real, high-quality ingredients including fruits and honey sourced from the Pacifi c Northwest.
Tillamook’s products are meeting with approval from consumers and dairy product judges alike. At the 17th biennial U.S. Championship Cheese Contest, Tillamook Vintage White Extra Sharp Cheddar, Sharp Yellow Cheddar and Colby Jack received fi rst place rec-ognition in their respective classes. The company also earned several awards at the American Cheese Society’s annual competition across multiple categories, including cheese, sour cream, butter and yogurt.
This next year, the co-op also plans to launch its fi fth Loaf Love Tour, and due to the tour’s success, the co-op plans to add both an Ice Cream and Yogurt tour.
This year for the fi rst time Tillamook
TILLAMOOKContinued from page 7
had two simultaneous Loaf Love Tours, one in California and one in Texas. The Loaf Love Tour consists of mini-buses retrofi tted from 1966 Standard Volkswa-gen Microbuses to resemble baby loafs of Tillamook Cheddar. The buses stop at grocery stores, neighborhoods and special events. Since the tour started in 2009, Tillamook has sampled more than 1.8 million pieces of cheese, given out more than 1.4 million coupons and met more than 1.3 million people while on the road.
“Engaging andresponding to our fans
on social mediais something really
important to us — they are a very importantpart of our extended
family whose opinions, ideas and stories we
value and want to hear.”
John RussellTILLAMOOK
LOAF LOVE — Tillamook’s Loaf Love Tour consists of mini-buses retrofi tted from 1966 Standard Volkswagen Microbuses to resemble baby loafs of Tillamook Cheddar. The buses stop at grocery stores, neighborhoods and special events.
Photo courtesy of Tillamook County Creamery Association
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While the co-op is best known for its fl agship cheese factory and visitor center in Tillamook, Ore., it built a plant in Boardman, Ore., in 2001 to keep up with growing demand for its cheese. It doubled that plant’s size in 2006, and now the co-op has begun construction on a project to add another 63,000 square feet to the eastern Oregon facil-ity. The facility expansion will add whey processing capabilities to its existing cheesemaking plant in Boardman, says Jay Allison, vice president of sales and marketing, Tillamook.
“The demand for such capability has grown signifi cantly in the last several years,” Allison says, “as the lactose and high-quality protein components de-rived from whey are increasingly being recognized for their high nutritional value and used in products like infant formula, performance nutrition products and products that help manage some of the impacts of aging.”
Next year, which marks Tillamook’s 105th year as a farmer-owned co-op, also has a number of marketing initia-tives scheduled. A highlight will be the launch of a brand new website at www.Tillamook.com along with a new e-mail marketing program.
Its website and social media are important tools for Tillamook, and the co-op utilizes eight different social
media channels to connect with Tilla-mook consumers to build loyalty beyond purchase alone.
On the Tillamook Blog, the co-op posts daily recipes from bloggers and restaurant partners, hosts contests and celebrates holidays such as National Grilled Cheese Sandwich Day. It currently has more than 400,000 followers on Facebook, 15,000 followers on Twitter and 2,000 followers on Instagram and Pinterest.
“Engaging and responding to our fans on social media is something re-ally important to us — they are a very important part of our extended family whose opinions, ideas and stories we value and want to hear,” Russell says.
Additionally, the co-op launched a series of “brand videos” to capture the Tillamook story from a number of dif-ferent vantage points and bring viewers through a visual time line of how the farmer-owned co-op has grown into a premium dairy brand.
“Our dedication to providing families with the highest quality dairy products made in the most natural way possible is a true testament to our farmer-owners who founded the Tillamook co-op over 100 years ago,” Russell says. “Through our brand videos, we wanted to share why we do what we do every day while providing a glimpse into the special place that is Tillamook, Ore.” CMN
SPRINGFIELD, Mo. — Hiland Dairy recently introduced a new line of nonfat Greek yogurts. The company says its new yogurts have a tangier taste, creamier texture and nearly twice the grams of protein per serving as conventional yogurt.
“Protein plays a very important role in the human body,” says Gary Aggus, president/general manager, Hiland Dairy. “Protein provides fuel for your body and helps you feel fuller longer which can lead to healthy eating habits. We wanted to offer a product to our customers that is full of rich, creamy fl avor and delivers steady and sustained
Hiland Dairy introduces Greek Yogurt lineenergy throughout the day. Plus, the straining process removes some of the milk sugar, lactose, making Greek yogurt less likely to upset the lactose-intolerant.”
Launched in August, Hiland launched its new Greek yogurt in Vanilla, Straw-berry, Raspberry, Blueberry, Black Cherry, Peach and Pineapple varieties. The company says each fl avor provides a delightful taste on its own, but they also offer versatility when incorporated into a variety of recipes, snacks and smoothies.
For more information, visit www.hilanddairy.com. CMN
Reprinted with permission from the Nov. 15, 2013, edition of CHEESE MARKET NEWS®© Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
Tastes better because it’s made better.
TILLAMOOK NEW PACKAGING WARNING: The mere sight of our new packaging might cause an immediate rush to grab the package and buy it, creating a flurry of happiness and sales that can strain a cash register and induce early cash register retirement. EXTREME DELICIOUSNESS INSIDE.
For more information about NEW Tillamook packaging’s effect on cash registers, contact your sales representative.
November 15, 2013 — CHEESE MARKET NEWS® 9 R E T A I L I N G P E R S P E C T I V E S
For more information please visit www.tillamook.com
Reprinted with permission from the Nov. 15, 2013, edition of CHEESE MARKET NEWS®© Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
10 CHEESE MARKET NEWS® — November 15, 2013
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MONROE, Wis. — Emmi Roth USA recently introduced two new fl avored cheese varieties in the Roth Wisconsin range — Chipotle Havarti and 3 Chile Pepper Gouda, featuring jalapeño, chi-potle and habanero peppers.
The spicy additions round out “The Fiery Five,” an assortment of boldly-fl avored Roth cheeses that also includes Horseradish Havarti, Jalapeño Havarti and Peppadew Havarti.
Emmi Roth offi cials say that retail sales data and menu trend analysis indicate that consumers are branching out to explore a host of hot peppers and distinctive fl avors in their in- and out-of-home dining experiences.
Flavor trends on restaurant menus from Technomic’s Menu Monitor data-base also indicate consumer interest in
Emmi Roth offers two new cheese varietiesbold and distinctive fl avors across key categories on the manu, particularly within burgers and sandwiches where fl avors like jalapeño, chili and chipotle serve to spice up familiar fare.
“We always strive to provide on-trend cheese solutions for the foodservice trade,” says Steve Millard, president and CEO, Emmi Roth USA. “As consumers continue to seek out bold fl avors, the Roth Fiery Five offer surefi re ways to distinguish menus and delight diners with the heat they crave.”
The Havarti varieties are available in a 9-pound loaf format, while the 3 Chili Pepper Gouda is available in a 6-pound loaf and 10-pound wheel. Retail cuts will be available in 2014.
For more information, visit www.emmirothfoodservice.com. CMN
RICHFIELD, Wis. — Saputo USA Inc. recently announced a November/De-cember promotion for its Stella brand of specialty Italian-style cheeses.
Under the “Win a Cooking Vacation in Italy!” sweepstakes, one consumer will be rewarded with a cooking adventure for two in Tuscany, Italy, as part of the enter-to-win contest. The winner’s holiday will include round-trip airfare and participation in “A Classic Tuscan Table with Chef Claudio,”
Saputo USA announces Stella specialty cheese sweepstakes for November, Decemberan authentic, hands-on cooking course featuring Tuscan dishes. Complimentary lodging at Chef’s Claudio’s cottages, a series of guided wine tastings and cultural excursions to the surrounding area also are include in the prize package.
“Stella cheeses are perfect in a wide variety of dishes, but even with these great fl avors to work with, it’s easy to fall into a culinary rut,” says Katie Jury, marketing manager for Saputo
Cheese USA’s specialty cheese brands. “We couldn’t think of a better way to re-energize one lucky contestant’s love of cooking than an immersive cooking vacation. Who wouldn’t want to learn how to make classic Italian recipes from a world-famous professional chef in the midst of the breathtaking meadows, vineyards and olive groves of Tuscany?”
In-store shelf talkers with tear pads featuring a coupon can be found in
participating retailers throughout the contest. Consumers with smart phones also can connect directly to the contest website at StellaCheese.com to access the online entry form and contest rules.
Full contest details, including an entry form, also will be available on the brand’s Facebook page at www.Facebook.com/StellaCheeses. The contest winner will be announced on the Facebook page as well. CMN
NEW BERLIN, N.Y. — Chobani Inc. recently selected six athletes from a cross section of sports and U.S. Olympic and Paralympic teams to be members of “Team Chobani.” The athletes and their sports include: Lindsey Jacobellis, snowboard cross; Allison Jones, para-cycling; Hannah Kearney, mogul skiing; Zach Parise, ice hockey; and Evan Strong, para-snowboard cross.
“Our approach is not out of the typical corporate play book — we’re truly honored to support these amazing athletes given that they, like us, un-derstand and embrace the importance of never cutting corners and having a genuine dedication to doing things the right way. It’s how they train, and it’s how we craft each and every cup of Chobani,” says Peter McGuinness,
Chobani teams up with six Sochi OlympiansChobani chief marketing and brand offi cer. “The journey of each of these athletes is as incredible as their med-als and accolades. We are proud to help naturally power Team USA and will be rooting for them on the road to Sochi.”
Chobani Greek Yogurt is served at the U.S. Olympic Training Centers. Ad-ditionally, as a supporter of Team USA during the Olympic and Paralympic Games for the second time, Chobani is participating in the Road To Sochi tour, delivering full-size samples across the United States leading up to the games. Chobani helped kick off the 100-day countdown celebration Oct. 29 in New York City’s Times Square.
For more information and up-dates on Team Chobani, visit www.facebook.com/chobani. CMN
Reprinted with permission from the Nov. 15, 2013, edition of CHEESE MARKET NEWS®© Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
November 15, 2013 — CHEESE MARKET NEWS® 11 R E T A I L I N G P E R S P E C T I V E S
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PLYMOUTH, Wis. — Sartori Co. has released a limited quantity of Cannella BellaVitano and Cognac BellaVitano for the 2013 holiday season. Each cheese wheel will be hand signed and numbered by a Sartori cheesemaker.
Cannella BellaVitano was created by taking sweet, buttery BellaVitano, which is aged at least 15 months, and steeping it in a cinnamon liqueur.
“The smells and fl avor of cinnamon give people a feeling of warmth over the holidays, which inspired me to create this unique holiday cheese,” says Mike Matucheski, cheesemaker, Sartori. “Some small pieces on top of a slice of
Sartori releases limited quantity of Cannella BellaVitano, Cognac BellaVitano for holidayswarm apple pie make for a mouthwater-ing experience.”
Cognac BellaVitano, meanwhile, is aged for at least 18 months. After the aging process, it is submerged in cognac. The end result is a unique and complex combination of smoky, nutty, oaky fl a-vors with toasted notes of vanilla and caramel from the cognac, Sartori says. In 2011, Cognac BellaVitano fi nished third overall at the World Cheese Awards, the highest ever fi nish for an American artisan cheese.
These products are available during the holiday season and can be purchased at select specialty cheese shops across
the United States. Cannella BellaVitano will be available now through the end of the year and Cognac BellaVitano will be available in December. Additionally, a limited supply of 4-ounce wedges will be available for sale on the Sartori web-site and will be included in an exclusive 2013 Sartori limited edition gift box this holiday season.
“We are very excited to share our hand-crafted, limited-edition products over this holiday season,” says Jim Sartori, CEO, Sartori. “I hope they are passed around many tables and brighten the days of our customers, their families and friends.”
For more information v is i t w w w. s a r t o r i c h e e s e . c o m . C M N
ELIZABETH, N.J. — Vic Rallo Jr., host of “Eat!Drink!Italy!,” recently an-nounced details of a partnership with Atalanta Corp., a major importer of specialty cheese and other foods in the United States, to promote Italian food and beverage products on his televi-sion cooking series. The sponsorship deal incorporates Atalanta’s portfolio of Italian products on the nationally syndicated show, helping to educate the consumer and trade on the “Made in Italy” brand. “Eat!Drink!Italy!” began its second season Oct. 27 on PBS’ digital channel Create.
The Atalanta products to be featured as sub-sponsors in the second season of “Eat!Drink!Italy!” include Piave cheese, Fontana Prosciutto, Ferrarelle naturally sparkling mineral water, Pivetti fl our and Tomarchio soda.
“Americans have an ongoing love affair with Italian cuisine,” says Tom
Atalanta Corp. partners with ‘Eat!Drink!Italy!’Gellert, vice president, Atalanta Corp. “What makes Italy so special is the re-gionality and diversity of products; there is always something new and exciting for customers to discover. We are confi dent with Vic and ‘Eat!Drink!Italy!’ that we have found the perfect partner to raise awareness about these exceptional Ital-ian artisan products.”
Rallo is a New Jersey restaurateur and is recognized as an expert on authentic Italian food and wine. He owns Basil T’s Brewery and Italian Grill in Red Bank, N.J., and Undici Taverna Rustica in Rumson, N.J.
“What is really at the heart of Italian cooking is just simple and sumptuous ingredients,” Rallo says. “This partner-ship allows us to educate viewers about Atalanta’s stellar portfolio of Italian products and bring the best of Italy’s artisan products into people’s homes and kitchens every week.” CMN
MADISON, Wis. — As consumer palates evolve, so does the demand for specialty cheese and robust fl avors, according to “What’s in Store 2014,” the latest edi-tion of the annual trends publication of the International Dairy-Deli-Bakery Association (IDDBA).
The publication’s cheese chapter notes that U.S. cheesemakers and retailers are embracing affi nage to meet demand. Specialty cheese accounts for nearly two-thirds of deli cheese sales, and retailers seek to improve sales by expanding their cheese sections and providing “cheese mongers.” Restaurant offerings infl uence cheese at retail, as traditional foods from burgers to macaroni and cheese to grilled cheese go upscale with specialty cheeses like Gouda, Brie, Blue and Goat.
Interest in Latin American and Mediterranean cuisine is appearing in the cheese case, as consumption of vari-eties like Queso Fresco, Cotija and Feta rises. Millennials, dubbed the “cheese generation,” have had more exposure to specialty and artisan cheese varieties, developing more adventurous palates. This makes them ideal customers for authentic cheeses in convenient forms.
The publication’s dairy case chap-ter notes that dairy is one of the most frequently shopped grocery depart-ments, with 36 trips averaged per year. Approximately 12,000 to 13,000 new products are introduced each year. Yogurt shows strong growth trends, particularly in the breakfast and snack categories. Yogurt sales projected to 2017 show an anticipated growth of
2014 cheese trends include robust fl avors17 percent (an estimated $9.1 billion).
Three macro factors impacting the dairy case are: decreasing U.S. middle-income households, diversity of shoppers by age and ethnic group and access to smart technologies (encouraging un-precedented levels of transparency). The report says watch for dairy processors to boast protein content and treatment of health issues, message about dairy’s nutrients beyond calcium and weight management, tout dairy as an excellent agent for prebiotics and probiotics, and stress satiety effects. Dairy to-go trends include products with longer shelf lives as well as occasion-specifi c desires (like mid-morning snacks) and complete convenience (such as utensils included).
In addition to “What’s in Store 2014,” IDDBA recently released its new report, “Filling the Gap in Deli and Bakery: White Space Opportunities to Yield Growth and Impact.” This research shows how retailers can “fi ll the gaps” and drive customer visits, increase sales and boost shopper satisfaction.
Compiled by Datassential, the study covers experiential marketing, thematic displays, freshness, premium and gour-met items, menu boards, nutritional information, signage, private label, re-gional/national brands and premium store brands. Other topics include trend-ing deli and bakery products, healthy options, ethnic fl avors, handheld foods and dietary concerns.
Both publications are available for purchase at www.iddba.org or by calling 608-310-5000. CMN
WEBSTERVILLE, Vt. — Vermont Creamery’s Cultured Butter with Maple & Sea Salt and Crème Fraiche with Bourbon Madagascar Vanilla, which were introduced exclusively at Whole Foods in 2012, are now available at retailers nationwide.
Cultured Butter with Maple & Sea Salt combines Vermont cream from St. Albans Cooperative Creamery, Vermont maple sugar from Butternut Mountain Farms and sea salt crystals. Vermont Creamery butter is cultured and churned in small batches to produce a rich, European-style butter with 86 percent butterfat, the company says.
Vermont Creamery cultured butter, Créme Fraiche varieties now available nationwide
Crème Fraiche is a longtime staple of French cuisine, and Vermont Creamery has been making it for 25 years. Its new Crème Fraiche with Bourbon Madagascar Vanilla combines the fl avor of pure vanilla with tart Crème Fraiche. The result is a subtly sweet, rich and nutty taste well suited to topping fall fruit tarts and pies, mixing into brownies, warming as a sauce, or as a base for crème brulee, Vermont Creamery says.
The 4-ounce Cultured Butter with Maple & Sea Salt and the 8-ounce Crème Fraiche with Bourbon Madagascar Va-nilla became available nationwide Nov. 1.
For more information v is i t www.vermontcreamery.com. CMN
Reprinted with permission from the Nov. 15, 2013, edition of CHEESE MARKET NEWS®© Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
12 CHEESE MARKET NEWS® — November 15, 2013
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CHICAGO — South Dakota State Uni-versity received the fi rst place trophy for the top score in the “all products” team rankings during the Collegiate Dairy Products Evaluation Contest, which was held here last week in conjunction with the International Dairy Show. Lloyd Metzger, associate professor in the Dairy Science Department at South Dakota State, was named coach of the year and received the Coach’s Award.
Clemson University came in second based on its overall score for all products, and the University of Missouri placed third.
Established in 1916 by several universities, the contest initially was designed to identify quality defects in
South Dakota State wins top team award at Collegiate Dairy Products Evaluation contestdairy products throughout the country so they could be corrected. It expanded over the years to recognize those students and dairy product judging teams that had mastered the ability to identify high-quality dairy products. The contest gives students the opportunity to showcase their evaluation skills and prepare for careers in the dairy industry. This year, teams representing 11 schools traveled to Chicago for the 92nd annual contest.
“This two-day contest offers the best dairy foods technology students from around the country an opportunity to test their skills and network with dairy industry professionals,” says Connie Tip-ton, IDFA president and CEO. “Holding the contest at the International Dairy
Show offered the blending of the most knowledgeable college students with real industry challenges and provided all with an excellent learning experience.”
Individual winners in the All Products category, and the monetary awards each received, were:
First: Taylor Jones, South Dakota State University ($400).
Second: Jennifer O’Brien, Clemson University ($300).
Third: Blake Jorgenson, Iowa State University ($200).
The fi rst place individual winners in the six product categories each received a $100 award. Team and student winners in the individual categories are as follows:Cheddar
First team: University of Missouri.First: Blake Jorgenson, Iowa State
University.Second: Maddie Faust, University of
Missouri.Third: Alyssa Pagel, University of
Minnesota.Yogurt
First team: Iowa State University.First: Matthew Watson, Iowa State
University.Second: Lyndsay Schakelford, Clem-
son University.Third: Blake Jorgenson, Iowa State
University.Milk
First team: Clemson University.First: Jennifer O’Brien, Clemson
University.Second: Blake Jorgenson, Iowa State
University.Third: Stephanie Schalles, Penn
State University.Butter
First team: Clemson University.First: Gabrielle Gunter, Clemson
University.Second: Stephanie Schalles, Penn
State University.Third: Taylor Jones, South Dakota
State University.Ice cream
First team: South Dakota State University.
First: Samantha Young, Washington State University.
Second: Taylor Jones, South Dakota State University.
Third: Megan Huegli, South Dakota State University.Cottage cheese
First team: South Dakota State University.
First: Tim Pennings, South Dakota
State University.Second: Jennifer O’Brien, Clemson
University.Third: Taylor Jones, South Dakota
State University.• Graduate rankings
Graduate students also participated in the evaluation contest and were scored separately. The top three graduate stu-dents in all products were:
First: Angelica Gutierrez, Iowa State University.
Second: Suresh Sutariyei, South Dakota State University.
Third: Emily O’Chiu, University of Missouri.
Graduate student winners in the individual categories are as follows:Cheddar
First: Emily O’Chiu, University of Missouri.
Second: Angelica Gutierrez, Iowa State University.
Third: Kenny Smith, University of Minnesota.Yogurt
First: Angelica Gutierrez, Iowa State University.
Second: Suresh Sutariyei, South Dakota State University.
Third: Emily O’Chiu, University of Missouri.Milk
First: Angelica Gutierrez, Iowa State University.
Second: Suresh Sutariyei, South Dakota State University.
Third: Mustafa Ozturk, University of Wisconsin.Butter
First: Suresh Sutariyei, South Dakota State University.
Second: Mustafa Ozturk, University of Wisconsin.
Third: Angelica Gutierrez, Iowa State University.Ice Cream
First: Emily O’Chiu, University of Missouri.
Second: Suresh Sutariyei, South Dakota State University.
Third: Angelica Gutierrez, Iowa State University.Cottage Cheese
First: Angelica Gutierrez, Iowa State University.
Second: Emily O’Chiu, University of Missouri.
Third: Kenny Smith, University of Minnesota.
To learn more about this competition, visit www.dairyproductscontest.org. CMN
MADISON, Wis. — The Wisconsin Department of Administration recently selected Milwaukee-based Zimmerman Architectural Studios Inc. as the archi-tectural and engineering fi rm for the Babcock Hall renovation and Center for Dairy Research (CDR) addition project.
Zimmerman and W.M. Sprinkman Corp., a dairy processing and engineering design fi rm, partnered on the bid and will
Architect selected for Babcock Hall projectwork together on the project which is set to break ground in the summer of 2015. A fi nal contract between Zimmerman and the state of Wisconsin is expected to be signed in the next few weeks.
To assist in the process, CDR also has established an industry advisory group of industry experts who have volunteered to provide input during the design and construction phase of the project. CMN
Reprinted with permission from the Nov. 15, 2013, edition of CHEESE MARKET NEWS®© Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
November 15, 2013 — CHEESE MARKET NEWS® 13
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14 CHEESE MARKET NEWS® — November 15, 2013
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Lucas says the House “is on record” stat-ing that the dairy title should not include supply management or supply control, according to the International Dairy Foods Association (IDFA), which opposes DMSP.
“We are pleased to hear that Chairman Lucas has indicated his opposition to this controversial new program that is designed to artifi cially raise milk prices,” says Jerry Slominski, senior vice president of legis-lative affairs and economic policy, IDFA. “Chairman Lucas wants to get a farm bill passed by Congress this year, and he knows that it will be hard, if not impossible, to ac-complish that goal if the fi nal bill includes a program that was soundly defeated by an overwhelming bipartisan vote.”
However, at this week’s joint annual meeting of the National Milk Producers Federation (NMPF), the National Dairy Promotion and Research Board (NDB) and United Dairy Industry Association (UDIA) in Phoenix, Randy Mooney, NMPF board chair, blasted the dairy provisions in the pending House farm bill as costly to taxpayers, a bonanza for processors and not what’s needed to help farmers.
Mooney says the House is dangerously close to repeating mistakes of the early 1980s, when the federal dairy safety net was “far too generous.”
In those days, “you had to work at it to lose money milking cows,” he says. “Farm-ers produced more milk than the market could absorb, letting Washington buy up
the rest. The USDA became the largest single customer that farmers had. We spent most of the rest of the ’80s paring down the structural surplus that was created because Congress wanted to help us ... to a fault.”
Mooney says that today “we are in a dangerous position of repeating history because certain people in Congress are forgetting the lessons of the past.”
He says the House has voted for a new subsidy for dairy farmers modeled on crop insurance but with no mechanism to limit costs when the economy slows down.
The subsidy payments will insulate farmers from the market, and milk pro-duction will keep growing, Mooney says.
“It’ll be cheap milk for processors, with taxpayers on the hook to keep the insur-ance money fl owing,” he says . “And mark my words: If this approach were adopted, it would be the fi rst and last time that a farm bill features this type of program. It’s just not built on sound fi nancial footing.”
The Senate, by contrast, has embraced a combination of margin insurance and a market stabilization program that sends clear signals to farmers when less milk is needed, Mooney says.
“It’s not government forcing you not to produce,” Mooney says. “It’s a simple, voluntary device to encourage a faster rebound in healthy margins, and it’s a way to reduce the cost of this new dairy program to taxpayers.
“We’re not asking for a handout,” he adds. “We’re asking for a hand. And we are willing to do our part to make sure taxpayers aren’t on the hook for an open-ended, costly new program.” CMN
FARM BILLContinued from page 1
RESULTSContinued from page 1
Hoven, S.D., for its Parmesan, which received fi rst place in the Hard & Mold Ripened Italian category. “Best Ched-dar” was awarded to Tillamook County Creamery Association’s Team 2, Tilla-mook, Ore., for its mild Cheddar, which placed fi rst in its category.
The contest was held in Phoenix this week in conjunction with the NMPF joint annual meeting with the National Dairy Board and United Dairy Industry Associa-tion. Open to cooperatives that are mem-bers of NMPF, the contest drew 161 entries and a total of 2,400 pounds of cheese.
Award winners in each category are:• Mild Cheddar
First: Team 2, Tillamook County Creamery Association, Tillamook, Ore., 99.0.
Second: Agri-Mark Inc., Chateaugay, N.Y., McCadam Mild New York Ched-dar, 98.3.
Third: Jim Kleva, AMPI, Rochester, Minn., 98.0.• Medium Cheddar
First: Agri-Mark Inc., Cabot, Vt., Vermont Medium Cheddar, 99.3.
Second: Dale Schmidt, Land O’Lakes Inc., Kiel, Wis., 98.8.
Third: Foremost Farms USA, Marsh-fi eld, Wis., 98.2.• Sharp Cheddar
First: Team 3, Tillamook County Cream-ery Association, Tillamook, Ore., 99.3.
Second: Agri-Mark Inc., Chateaugay, N.Y., McCadam Sharp New York Ched-dar, 98.4.
Third: Agri-Mark Inc., Middlebury, Vt., Cabot Sharp Vermont Cheddar, 98.2. • Extra Sharp Cheddar
First: Team 1, Tillamook County Cream-
ery Association, Tillamook, Ore., 98.9.Second: Team 2, Tillamook County
Creamery Association, Tillamook, Ore., 98.6.Third: Luke Kopecky, Land O’Lakes
Inc., Kiel, Wis., 98.3. • Soft Italian
First: Ramon Arryoyo, Dairy Farm-ers of America (DFA), Turlock, Calif., Provolone, 99.6.
Second: Ron Pell, DFA, New Wilm-ington, Pa., Provolone, 99.5.
Third: Team Clayton, Foremost Farms USA, Clayton, Wis., Smoked Provolone, 99.4.• Hard & Mold Ripened Italian
First: AMPI, Hoven, S.D., Parmesan, 99.5.Second: AMPI, Hoven, S.D., Romano,
99.0.Third: Swiss Valley Farms, Faribault,
Minn., St. Pete’s Select Blue, 98.9.• Natural
First: Ellsworth Cooperative Cream-ery, Ellsworth, Wis., Muenster, 99.6.
Second: Team 2, Tillamook County Creamery Association, Tillamook, Ore., Colby, 99.5.
Third: Agri-Mark Inc., Chateaugay, N.Y., McCadam Muenster, 99.4.• Swiss
First: Swiss Valley Farms, Monona, Iowa, Regular Swiss, 99.0.
Second: Swiss Valley Farms, Monona, Iowa, Baby Swiss Wheel, 98.5.• Processed American Plain
First: AMPI, Portage, Wis., Colored American Slices, 99.0.
Second: Ralph Schutz, AMPI, Por-tage, Wis., White American Loaf, 98.6.
Third: Land O’Lakes Inc., Spencer, Wis., Sliced American, 97.8.• Processed American Flavored
First: Land O’Lakes Inc., Spencer, Wis., Four Cheese Italian Blend, 98.4.
Second: Russ Evans, AMPI, Portage, Wis., Hot Pepper Loaf, 98.0.
Third: Chris Dickson, DFA, West Middlesex, Pa., Loaf, 97.9.• Unique or Flavored
First: Swiss Valley Farms, Faribault, Minn., Jeff’s Select Gouda, 99.6.
Second: Swiss Valley Farms, Monona, Iowa, Havarti, 98.7.
Third: Agri-Mark Inc., Chateaugay, N.Y., McCadam Pepper Jack, 98.4.• Reduced Fat
First: Team C, Foremost Farms USA, Clayton, Wis., Reduced Fat Provolone, 99.6.
Second: Team A, Foremost Farms USA, Clayton, Wis., Reduced Fat Provolone, 99.5.
Third: Swiss Valley Farms, Monona, Iowa, Reduced Fat Baby Swiss, 99.0.• Open Class
First: Salvador Beltran, DFA, Hous-ton, Queso Fresco Mexicano, 98.6.
Second: Agri-Mark Inc., Cabot, Vt., Cabot Alpine Blend Cheese, 98.4.
Third: Swiss Valley Farms, Monona, Iowa ,Cream Cheese, 98.3.• Cottage Cheese
First: Tony Lepkowski, Upstate Niagara Cooperative Inc., West Seneca, N.Y., 4-percent Large Curd, 99.1.
Second: Jim Hoffman, Prairie Farms Dairy Inc., Quincy, Ill., 4-percent Large Curd, 99.0.
Third: Ryan Stetzel, Prairie Farms Dairy Inc., Fort Wayne, Ind., 4-percent Large Curd, 98.9.• Flavored Cottage Cheese
First: Glasser, Andrews, Fisk, Arnold and Gilmour, Northwest Dairy Associa-tion, Issaquah, Wash., Pineapple Small
Curd Cottage Cheese, 99.0.Second: Joe Santora, Upstate
Niagara Cooperative Inc., West Sen-eca, N.Y., 4-percent Pineapple Cottage Cheese, 98.9.
Third: Bob Jerisol, Upstate Niagara Cooperative Inc., West Seneca, N.Y., 4-percent Chive Cottage Cheese, 98.8.• Reduced Fat Cottage Cheese
First: Glasser, Andrews, Fisk, Arnold and Gilmour, Northwest Dairy Associa-tion, Issaquah, Wash., Reduced Fat Trim Small Curd, 98.9.
Second: Marion Kotlak, Upstate Niagara Cooperative Inc., West Seneca, N.Y., 1-percent Small Curd, 98.8.
Third: Ron Diuguid, Prairie Farms Dairy Ind., Carbondale, Ill., 2-percent Large Curd, 98.5.• Natural Cheese Snack
First: Team 1, Tillamook County Creamery Association, Tillamook, Ore., Garlic Dill Flavored Cheese Curds, 98.7.
Second: Ellsworth Cooperative Creamery, Ellsworth, Wis., Cheddar Cheese Curds, 98.6.
Third: Team 1, Tillamook County Creamery Association, Tillamook, Ore., Chipotle Salsa Cheddar Cheese Curds, 98.4.• Processed Cheese Snack
First: Land O’Lakes Inc., Spencer, Wis., Queso Cheese Dip, 98.0.
Second: Land O’Lakes Inc., Spencer, Wis., Processed Cheese Product, 97.8.
Third: Agri-Mark Inc., Cabot, Vt., Cabot Extra Sharp Spread-able Cheddar, 97.7. CMN
C L A S S I F I E DA D V E R T I S I N G
HELP WANTED 7• HELP WANTED 7•
Reprinted with permission from the Nov. 15, 2013, edition of CHEESE MARKET NEWS®© Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
a government priority and it is a large powdered milk importer, she says.
The MENA region also is looking to diversify from the oil sector, Halal says, and food and beverage manufacturing is an important part of the region’s di-versifi cation scheme. And with a focus on producing high-quality, cost-effi cient products, the United States is increas-ingly becoming an attractive option to MENA dairy stakeholders.
In the processing sector, processors rely heavily on imported ingredients, Halal says. Opportunities for U.S. dairy also exist in retail and foodservice, she notes.
However, USDEC stresses that while buyers in the Middle East look to the U.S. dairy industry as innovative global lead-ers with high quality offerings, U.S. sup-pliers’ intent to secure their business needs to be supported by more visible action. MENA buyers want proof that the U.S. dairy industry is ready to serve as a long-term committed supplier, and this requires more consistent involvement and more face-to-face communication.
The United States has a vast product portfolio including cheese, butter, nonfat dry milk (NDM) and an increasing variety of dry milk and whey powders. However, there is inconsistent market availability and a lack of product development to compete with local varieties, Halal notes.
November 15, 2013 — CHEESE MARKET NEWS® 15
MENAContinued from page 1
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DAIRY GROWTH IN THE MIDDLE EAST —Alyssa Sowerwine, senior editor of Cheese Market News, participated in a trade mission to Dubai, United Arab Emirates, Nov. 2-6 with the U.S. Dairy Export Council (USDEC) to learn more about the growing opportunities for U.S. dairy in the Middle East and North Africa region. Participants visited retail stores including Lulu’s Hypermarket (pictured), toured the Jebel Ali Free Zone and Emirates Flight Catering, met with Middle East dairy industry stake-holders and participated in the fi rst U.S. Dairy Business Conference, hosted by USDEC. Other mission participants are pictured in last week’s issue of Cheese Market News. To see more photos from the USDEC Dubai trade mission and U.S. Dairy Business Conference, view the “USDEC Dubai trip” photo album on the Cheese Market News Facebook page at www.facebook.com/cheesemarketnews.
Photo by Lucy Mila
USDA lowers 2013 milk production forecast, but increases 2014 milk production outlookWASHINGTON — In its “World Agri-cultural Supply and Demand Estimates” (WASDE) report released last Friday, USDA lowered its 2013 milk production forecast by 100 million pounds compared to its September 2013 report. The adjust-ment to the forecast brings the 2013 projection to 201.7 billion pounds. There was no October 2013 WASDE report due to the government shutdown.
Meanwhile, USDA upped its 2014 milk production projection by 400 mil-lion pounds from September’s report to 204.9 billion pounds. While the 2013 forecast was lowered to refl ect slower growth in third-quarter production, the 2014 forecast was raised as producers are expected to increase cow herds in response to improving returns. USDA says growth in milk per cow also is expected to be higher than 2013 as moderating feed costs and improved forage availability support feeding higher-quality rations.
Import forecasts are reduced for both 2013 and 2014 in this month’s report baed on lower expected milk protein concentrate imports. Export projections are raised for both 2013 and 2014 on stronger sales of fat-containing products and nonfat/skim milk powders.
The cheese price for 2013 now is fore-cast to average $1.765-$1.775 per pound vs. the $1.755-$1.775 range in the September report. In 2014, the cheese price is forecast to average $1.670-$1.760 vs. the $1.670-
$1.770 range forecast in September.USDA now puts the 2013 butter price
forecast at $1.515-$1.545, up from $1.500-$1.540 in September’s report. The aver-age price for butter in 2014 is expected to fall in the $1.465-$1.585 range.
The 2013 NDM price forecast is raised to $1.685-$1.705 from $1.675-$1.695 in the September report. The 2014 NDM price forecast now is $1.685-$1.755, up from $1.675-$1.745 in the September report.
The dry whey price forecast is lowered to $0.580-$0.590 for 2013, down from $0.585-$0.605 in the September report. The 2014 dry whey price currently is forecast to be in the $0.545-$0.575 range, down from the September forecast of $0.585-$0.615.
Pressured by lower whey prices, the Class III milk price forecast for 2013 is reduced to $17.90-$18.00 per hundred-weight vs. $17.90-$18.10 in the Septem-ber report. For 2014, the Class III price forecast is lowered to $16.85-$17.75 vs. $17.05-$18.05 in the September forecast.
Meanwhile, the Class IV price forecast is raised for both years. The Class IV forecast for 2013 now is $18.80-$19.00 and for 2014 is $18.60-$19.60.
The all-milk price forecast for 2013 is $19.80-$19.90 in the current WASDE report vs. $19.70-$19.90 in the September report. The 2014 all-milk price forecast is lowered to $19.30-$20.20 vs. $19.35-$20.35 in the September report. CMN
For example, MENA customers are seek-ing more options such as low spore skim milk powder and demineralized whey.
While the United States has a repu-tation for good nutrition profi les in its products, as well as high-quality sensory attributes and functionality, issues with whey color changes, whey fl avor profi les and lack of consistency remain, she says.
MENA customers trust in U.S. dairy expertise and technology, but there are issues of infl exibility with small trial orders and limited customization to specifi c foodservice and customer needs, Halal notes.
U.S. suppliers are perceived as “friendly,” but their visits to the MENA region are infrequent, there is a lack of joint venture operations and MENA customers desire more direct business ties, she says.
Other challenges include long logis-tical transit times and the perception that MENA is a “dumping ground” for inferior products, she adds.
In order to best seize the opportuni-ties available in the MENA region, U.S. suppliers need to understand the mar-ket’s needs, Halal says. Key strategies include face-to-face direct relations, starting with small orders to gradually build up volume, consistency of supply, technical support, customer service and meeting specifi cations for quality, packaging and labeling.
USDEC notes that U.S. exporters continue to work to get the message across that they are prepared to be
consistent suppliers to this region. The opportunities are there, as most buyers in the MENA region want to buy from U.S. dairy exporters but say they want to see more of a consis-tent U.S. presence in the market and more frequent communication. CMN
To see more photos from the USDEC Dubai trade mission and U.S. Dairy Business Conference, check out the “USDEC Dubai trip” photo album on Cheese Market News ’ Face-book page at www.facebook.com/cheesemarketnews.
Reprinted with permission from the Nov. 15, 2013, edition of CHEESE MARKET NEWS®© Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
16 CHEESE MARKET NEWS® — November 15, 2013
MEETINGContinued from page 1
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DairyUS chosen as name for REAL Seal mascot PHOENIX — Following a nationwide vote, “DairyUS” has been chosen as the name of a new cartoon character designed to help to build awareness of the advantages of real dairy foods, the National Milk Producers Federation (NMPF) announced this week during its annual meeting here.
The animated character, modeled af-ter the REAL Seal logo, will be used to help a new generation of consumers distinguish between genuine U.S. dairy products and a growing list of imitations, NMPF says. A video announcing the name is on the REAL Seal website, www.realseal.com.
NMPF designed the cartoon character after assuming management of the REAL Seal last year. The new animated icon is part of an effort to revitalize the seal, which was created in the 1970s and is already used on more than 10,000 food products.
NMPF asked the public to suggest names for the character this past sum-mer, using the REAL Seal website and new REAL Seal Facebook page, www.facebook.com/REALSealDairy. Three fi nalists were selected from among more than 100 names submitted. An online vote was held from mid-September through Election Day, Nov. 5.
Nearly 800 votes were cast for the three fi nalists, and DairyUS, suggested
by Kathryn in Clermont, Iowa, received 379 votes. The runner-up, Milkdrop, re-ceived 343 votes, while the third fi nalist, Roscow, received 74 votes.
“DairyUS will help both kids and adults learn about foods made with real dairy products,” says Jim Mulhern, NMPF chief operating offi cer.
The cartoon character is one of a number of innovations NMPF has made to promote the REAL Seal on the Internet and through social media. Until recently, the REAL Seal website was targeted mostly at companies interested in using the seal on their products. The website now is focused on consumers.
NMPF also offered a preview at the annual meeting of the REAL Seal buyer’s guide, a web-based search engine that will make it easier for consumers to pa-tronize brands and stores that offer real dairy products. The buyer’s guide web-site soon will be available online. CMN
Mulhern calls that “transparency in action,” but notes that it can also be misused.
“The strategy of some food com-panies is to try to increase sales by scaring consumers into paying more for their particular product because of how it can be produced,” he says. “That’s not transparency. It’s fear-based marketing ... left unchecked, it not only affects the marketplace, it also affects the policy environment. We must tell our story because if we don’t, others — who don’t have our interest at heart — are telling a very different and harmful story.”
Also at the annual meeting this week, Steve Maddox, a California dairy pro-ducer and outgoing NDB chair, shared how the dairy checkoff is helping pro-ducers and the dairy industry to change, innovate and grow by working with and through the industry to increase sales.
“Change is vital to the success of any business or industry, and this is especially true of our checkoff program,” Maddox says.
He points to a strategic shift several years ago, where the checkoff began working in partnership with major dairy and foodservice companies and consumer brands to grow sales.
Tom Gallagher, CEO of Dairy Man-agement Inc., which manages the checkoff program, notes that through the checkoff, the nation’s dairy farm-ers and importers have the “collective power” to innovate, change, and grow sales and trust.
“While it’s diffi cult to imagine one person affecting demand for their product, through the checkoff they have a voice, a very loud voice that can dominate the marketplace,” Gal-lagher says.
Meanwhile, Maddox participated in a panel discussion with representa-tives from McDonald’s USA and The Quaker Oats Co. that highlighted how these partnerships work on behalf of dairy producers. Additionally, Taco Bell President Brian Niccol and Chief Food Innovation Offi cer Liz Matthews presented the chain’s plans to help grow sales through product innovation and new menu items.
Maddox says partnerships with major consumer brands — including Domino’s Pizza, Taco Bell, McDon-ald’s, and Quaker — have contributed to billions of pounds of additional milk sales.
“Working with companies who have a shared commitment and goal to increase sales is the right thing to do,” Maddox says. “It allows us to leverage resources and expertise, and create a win-win for us and those we work with.”
Neil Hoff, a Texas dairy producer and UDIA chairman, explained how the checkoff is working to turn around the decades-long decline in fl uid milk sales.
“At the direction of producer lead-ers, checkoff staff has met with nearly 200 executives from 50 companies that include fl uid milk processors, dairy cooperatives, retailers and suppliers to identify the underlying factors to stabilize and grow fl uid milk sales,” Hoff says. “Innovation is critical to fl uid milk’s survival.”
Hoff says the checkoff and proces-sors are putting muscle behind the effort.
“To date, the checkoff has invested $9 million to turn around sales and bring consumers back to the category. Building on our strategy to use other people’s fi nancial and human resources, others have invested $81 million so far,” he adds.
The opportunity is enormous as it’s anticipated that investments in the next fi ve years will total hundreds of millions of dollars, Hoff notes.
Representatives from Dairy Farmers of America and Shamrock Foods Co. joined Hoff in sharing how the industry is investing in manufacturing, packag-ing and marketing innovation to bring shoppers back to the dairy case.
Hoff notes that progress will take time.
“Our challenges didn’t occur over-night and solutions won’t be realized overnight,” he says. “This is a decades-long, industry-wide commitment to innovation.”
Another bright spot for long-term U.S. dairy product and ingredient sales highlighted at the meeting was exports — a signifi cant swing from just 15 years ago, notes Paul Rovey, Arizona dairy producer and chairman of Dairy Management Inc., which manages the national dairy checkoff program with funding by NDB and UDIA.
“I remember when we had to beg other countries to take our excess dairy products,” Rovey says. “Today, one out of every seven tanker loads of milk is exported.”
For 2013, exports are on track to total $6.5 billion in sales — a 25-per-cent increase from 2012, and the fourth consecutive record year for U.S. dairy exports, he notes.
Rovey cites two critical factors for this growth: the success of the producer-created U.S. Dairy Export Council (US-DEC) and a commitment by industry to become a consistent supplier for international markets.
“USDEC thrives with support from dairy producers, USDA’s Foreign Ag-ricultural Service and 100-plus dues-paying members,” Rovey says. “This broad-based collaboration maximizes our checkoff investment to grow the U.S. dairy industry and meet unmet dairy demand around the world.”
Rovey says the U.S. dairy industry must keep its eye on the prize to con-tinue this trend.
“We must continue to change, innovate and grow. We must stay focused on our do-mestic market, yet also remain attentive to growing exports. Both markets are impor-tant to secure our future,” he says. CMN
Reprinted with permission from the Nov. 15, 2013, edition of CHEESE MARKET NEWS®© Copyright 2013 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com