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Schreiber Foods to cease operations in Ravenna, Neb. By Alyssa Sowerwine RAVENNA, Neb. — Schreiber Foods Inc., based in Green Bay, Wis., is planning to cease operations at its plant in Ravenna, Neb., effective Feb. 28, 2013. The company plans to move operations to another existing facility. “Unfortunately, the Ravenna plant has some challenges that are difficult to overcome,” says Andrew Tobisch, director of communications, Schreiber Foods. “Physical constraints limit our ability to expand and automate, which are both imperative because of increasing demand and competition. With that being the case, we needed to move this production to a facility that can provide those opportunities for expansion and automation.” UW Board of Regents approves plans for Babcock Hall remodel MADISON, Wis. — The Wisconsin Center for Dairy Research (CDR) recently received the next approval necessary to proceed with its proposed expansion and remodeling project for the University of Wis- consin’s (UW) Babcock Hall dairy plant. Late last week, the UW Board of Regents approved a plan to provide half of the approximately $32 million needed for the remodeling and expansion of dairy research and teaching space and ice cream and cheesemaking facilities in Babcock Hall. The balance of the funds is expected to come from organizations and companies in the cheese and dairy industry. CDR notes that the dairy industry has strongly supported the project, having pledged to date more than $12 million to the Babcock Hall project, which will include 67,000 square feet of renovated and additional space, including a 27,000-square-foot addition dedicated to new research and processing space for CDR. Specialty cheese ripening rooms, a large protein fractionation area and a cultured products suite are just a few of the new research areas that will be included in the addition. “This approval is an important milestone for this project,” says John Lucey, CDR director. “Continued strong industry support remains important as we enter the next phase of the campaign, which includes obtaining approval by the State of Wisconsin building commission and inclusion in the 2013-15 state budget.” John Umhoefer, executive director of the Wisconsin Cheese Makers Association (WCMA), notes that WCMA offered the first major contribu- tion to this project, and of the funds contributed to date, more than 80 percent have come from WCMA member companies and cooperatives. “Cheese manufacturers and processors in Wisconsin and across the nation recognize that a new research facility for the Center for Dairy Research and a modern dairy plant at Babcock Hall are essential to national efforts on dairy innovation, dairy quality and for industry growth for decades to come,” Umhoefer says. CMN 9ROXPH $XJXVW 1XPEHU By Alyssa Sowerwine WASHINGTON — As kids head back to school, they are seeing changes on their lunch trays as schools nationwide comply with new USDA school lunch regulations aimed at improving the health and nutrition of U.S. children. New USDA regulations governing school meal pro- grams, the first major changes in more than 10 years, were finalized in January but are just beginning to take effect for school lunch programs. Breakfast regulations won’t be implemented until next year, and USDA has yet to finalize its guidelines on a la carte food items. Schools nationwide implement new lunch nutrition guidelines USDA’s new rules put into place provisions of the Healthy, Hunger-Free Kids Act, which Congress passed in late 2010. The act aims to improve the quality of all foods and bever- ages offered in schools and to align school menus with the most recent Dietary Guidelines for Americans. Under the rules, schools are required to offer 8 ounces of fluid milk with each school lunch and breakfast, but only lowfat and fat-free plain milk and fat-free flavored milks are allowed. (See “Lowfat flavored milk cut from reimbursable schools meals” in the Jan. 27, 2012, issue of Cheese Market News.) One of the key challenges in implementing the meal changes is the fact that regu- lations now require not only a minimum amount of each type of food, but also a maxi- mum amount, says Cary Frye, vice president of scientific and regulatory affairs for the International Dairy Foods As- sociation (IDFA). “Schools have had time to prepare, but they’ve had a lot of challenges, not just with dairy but with all the grains, other nutrients and servings required,” Frye says. Calorie standards vary by age, ranging from 550-850 calories permitted for lunch. No more than 35 percent of total calories from fat are al- lowed, with 0 grams of trans fat and less than 10 percent of total calories from satu- rated fats allowed. Sodium requirements also vary by age, with a maximum of 640- 740 milligrams for lunch, a requirement to be phased in over 10 years. Cheese commodity pur- chase specifications reduce the upper salt limit on Moz- zarella from 2 percent to 1.6 percent and in processed cheeses and blended cheese to between 200 milligrams and 300 milligrams per 28-gram (1-ounce) serving. Plain, flavored, sweetened and unsweetened yogurt is per- mitted, with drinkable yogurt, frozen yogurt and yogurt bars not creditable. Both yogurt and cheese are considered meat alterna- tives, with 1 ounce of process and natural cheese equal to 1 ounce of meat alternative, and 4 ounces of yogurt (0.5 cup) equal to 1 ounce of meat alternative. Process cheese spread, process cheese food and cottage and Ricotta cheese have a 2-ounce equivalent to 1 ounce of meat. There is no specific provi- sion for serving ice cream or frozen desserts unless extra calories are needed in the meal. The meat/meat alterna- tive maximum amount has been reduced from 1.5-3 ounces allowed to 1-2 ounces allowed. Grain maximums also have been reduced from 1.8-3 ounces to 1-2 ounces. Fruits and veg- gies, previously counted as a joint category with 0.5-1 cup to- tal required, now are separate requirements, with 0.75-1 cup of veggies required and 0.5-cup of fruit required. Frye notes that dairy is in a relatively flexible position in the new requirements with the various ways it can be used in meals. “I think we’re still in a good position,” she says. Camellia Patey, vice presi- dent, school wellness partners, for the National Dairy Council, notes that the dairy industry has been proactive in refor- mulating milk for schools to offer lower-sugar varieties. The industry also continues to work on lower-sodium and lower-fat Kraft to close Bentonville, Ark., cheese facility Turn to NUTRITION, page 10 D Turn to SCHREIBER, page 10 D NORTHFIELD, Ill. — Kraft Foods Group Inc. has an- nounced that it intends to close its cheese manufac- turing plant in Bentonville, Ark., in the second quarter of 2013. This announcement has no impact on the Kraft sales office in Rogers, Ark. The 65,000-square-foot plant in Bentonville makes ingredient cheeses that are used by other Kraft plants. Turn to KRAFT, page 10 D Scan this code for breaking news and the latest markets! A INSIDE ) Guest column: ‘Margin insurance — without supply management — makes sense.’ For details, see page 4. ) Court rules against PETA’s petition challenging CMAB. For details, see page 5. ) FAPRI publishes mid-year baseline update. For details, see page 6. ) Dean Foods cuts jobs at Michigan plant, makes plans to close it. For details, see page 10. Reprinted with permission from the Aug. 31, 2012, edition of CHEESE MARKET NEWS ® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

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  • Schreiber Foods to cease operations in Ravenna, Neb.By Alyssa Sowerwine

    RAVENNA, Neb. — Schreiber Foods Inc., based in Green Bay, Wis., is planning to cease operations at its plant in Ravenna, Neb., effective Feb. 28, 2013. The company plans to move operations to another existing facility.

    “Unfortunately, the Ravenna plant has some challenges that are difficult to overcome,” says Andrew Tobisch, director of communications, Schreiber Foods. “Physical constraints limit our ability to expand and automate, which are both imperative because of increasing demand and competition. With that being the case, we needed to move this production to a facility that can provide those opportunities for expansion and automation.”

    UW Board of Regents approves plans for Babcock Hall remodel MADISON, Wis. — The Wisconsin Center for Dairy Research (CDR) recently received the next approval necessary to proceed with its proposed expansion and remodeling project for the University of Wis-consin’s (UW) Babcock Hall dairy plant.

    Late last week, the UW Board of Regents approved a plan to provide half of the approximately $32 million needed for the remodeling and expansion of dairy research and teaching space and ice cream and cheesemaking facilities in Babcock Hall.

    The balance of the funds is expected to come from organizations and companies in the cheese and dairy industry.

    CDR notes that the dairy industry has strongly supported the project, having pledged to date more than $12 million to the Babcock Hall project, which will include 67,000 square feet of renovated and additional space, including a 27,000-square-foot addition dedicated to new research and processing space for CDR. Specialty cheese ripening rooms, a large protein fractionation area and a cultured products suite are just a few of the new research areas that will be included in the addition.

    “This approval is an important milestone for this project,” says John Lucey, CDR director. “Continued strong industry support remains important as we enter the next phase of the campaign, which includes obtaining approval by the State of Wisconsin building commission and inclusion in the 2013-15 state budget.”

    John Umhoefer, executive director of the Wisconsin Cheese Makers Association (WCMA), notes that WCMA offered the first major contribu-tion to this project, and of the funds contributed to date, more than 80 percent have come from WCMA member companies and cooperatives.

    “Cheese manufacturers and processors in Wisconsin and across the nation recognize that a new research facility for the Center for Dairy Research and a modern dairy plant at Babcock Hall are essential to national efforts on dairy innovation, dairy quality and for industry growth for decades to come,” Umhoefer says. CMN

    By Alyssa Sowerwine

    WASHINGTON — As kids head back to school, they are seeing changes on their lunch trays as schools nationwide comply with new USDA school lunch regulations aimed at improving the health and nutrition of U.S. children.

    New USDA regulations governing school meal pro-grams, the first major changes in more than 10 years, were finalized in January but are just beginning to take effect for school lunch programs. Breakfast regulations won’t be implemented until next year, and USDA has yet to finalize its guidelines on a la carte food items.

    Schools nationwide implement new lunch nutrition guidelines

    USDA’s new rules put into place provisions of the Healthy, Hunger-Free Kids Act, which Congress passed in late 2010. The act aims to improve the quality of all foods and bever-ages offered in schools and to align school menus with the most recent Dietary Guidelines for Americans.

    Under the rules, schools are required to offer 8 ounces of fluid milk with each school lunch and breakfast, but only lowfat and fat-free plain milk and fat-free flavored milks are allowed. (See “Lowfat flavored milk cut from reimbursable schools meals” in the Jan. 27, 2012, issue of Cheese Market News.)

    One of the key challenges in implementing the meal changes is the fact that regu-lations now require not only a minimum amount of each type of food, but also a maxi-mum amount, says Cary Frye, vice president of scientific and regulatory affairs for the International Dairy Foods As-sociation (IDFA).

    “Schools have had time to prepare, but they’ve had a lot of challenges, not just with dairy but with all the grains, other nutrients and servings required,” Frye says.

    Calorie standards vary by age, ranging from 550-850 calories permitted for lunch. No more than 35 percent of total calories from fat are al-lowed, with 0 grams of trans fat and less than 10 percent of total calories from satu-rated fats allowed. Sodium requirements also vary by age, with a maximum of 640-740 milligrams for lunch, a requirement to be phased in over 10 years.

    Cheese commodity pur-chase specifications reduce the upper salt limit on Moz-zarella from 2 percent to 1.6 percent and in processed cheeses and blended cheese to between 200 milligrams and 300 milligrams per 28-gram (1-ounce) serving.

    Plain, flavored, sweetened and unsweetened yogurt is per-mitted, with drinkable yogurt, frozen yogurt and yogurt bars not creditable.

    Both yogurt and cheese are considered meat alterna-tives, with 1 ounce of process and natural cheese equal to 1 ounce of meat alternative, and 4 ounces of yogurt (0.5 cup) equal to 1 ounce of meat alternative. Process cheese spread, process cheese food and cottage and Ricotta cheese

    have a 2-ounce equivalent to 1 ounce of meat.

    There is no specific provi-sion for serving ice cream or frozen desserts unless extra calories are needed in the meal.

    The meat/meat alterna-tive maximum amount has been reduced from 1.5-3 ounces allowed to 1-2 ounces allowed.

    Grain maximums also have been reduced from 1.8-3 ounces to 1-2 ounces. Fruits and veg-gies, previously counted as a joint category with 0.5-1 cup to-tal required, now are separate requirements, with 0.75-1 cup of veggies required and 0.5-cup of fruit required.

    Frye notes that dairy is in a relatively flexible position in the new requirements with the various ways it can be used in meals.

    “I think we’re still in a good position,” she says.

    Camellia Patey, vice presi-dent, school wellness partners, for the National Dairy Council, notes that the dairy industry has been proactive in refor-mulating milk for schools to offer lower-sugar varieties. The industry also continues to work on lower-sodium and lower-fat

    Kraft to close Bentonville, Ark., cheese facility

    Turn to NUTRITION, page 10

    Turn to SCHREIBER, page 10

    NORTHFIELD, Ill. — Kraft Foods Group Inc. has an-nounced that it intends to close its cheese manufac-turing plant in Bentonville, Ark., in the second quarter of 2013. This announcement has no impact on the Kraft sales office in Rogers, Ark.

    The 65,000-square-foot plant in Bentonville makes ingredient cheeses that are used by other Kraft plants.

    Turn to KRAFT, page 10

    Scan this code for breaking news and the latest markets!

    A

    INSIDE Guest column:

    ‘Margin insurance — without supply management — makes sense.’ For details, see page 4.

    Court rules against PETA’s petition challenging CMAB. For details, see page 5.

    FAPRI publishes mid-year baseline update. For details, see page 6.

    Dean Foods cuts jobs at Michigan plant, makes plans to close it. For details, see page 10.

    Reprinted with permission from the Aug. 31, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

    http://www.facebook.com/cheesemarketnews

  • 2 CHEESE MARKET NEWS® — August 31, 2012

    MARKET INDICATORS

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

    STAFF SUBSCRIPTION INFORMATION

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

    Subscriptions:

    Susan Quarne, (PH 608/831-6002; FAX 608/831-1004)

    e-mail: [email protected] Kate Sander, (PH 509/962-4026; FAX 509/962-4027)

    e-mail: [email protected] Sowerwine, (PH 608/288-9090; FAX 608/288-9093) e-mail: [email protected]

    Rena Archwamety, (PH 608/288-9090; FAX 608/288-9093) e-mail: [email protected]

    Aaron Martin, (PH 608/288-9090; FAX 608/288-9093) e-mail: [email protected]

    REGULAR CONTRIBUTORSJohn Umhoefer, Downes-O'Neill LLC, International Dairy Foods Association, National Milk Producers Federation

    SUBSCRIPTIONS & BUSINESS STAFFSubscription/advertising rates available upon requestContact: Susan Quarne - PublisherP.O. Box 628254, Middleton, WI 53562PHONE 608/831-6002 • FAX 608/831-1004

    WEBSITE: www.cheesemarketnews.com

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

    ButterCheese

    11,419124,420

    -486-2,596

    7,473140,676

    -789-5,058

    +3,946-16,256

    -6 -4

    Weekly Cold Storage Holdings August 27, 2012 On hand Week Change since August 1 Last Year Monday Change Pounds Percent Pounds Change

    Total Contracts Traded/Open Interest

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

    AUG12SEP12OCT12NOV12DEC12JAN13FEB13MAR13APR13MAY13JUN 13JUL 13

    85/6,784

    1.7631.8801.9651.9721.9531.9291.9001.8701.8671.8531.8521.859

    1,3581,4101,1401,1161,165

    235119

    92545141

    2

    CHEESE FUTURES* for the week ended August 30, 2012 (Listings for each day by month, settling price and open interest)

    1.7681.9091.9982.0011.9741.9471.9101.8941.8671.8531.8521.859

    1,3741,4091,1481,1161,166

    239119

    97545141

    2

    93/6,817

    1.7681.8861.9611.9731.9641.9531.9351.9171.9031.8751.8491.859

    1,3741,4091,1471,1311,180

    240124107

    605744

    2

    Fri., August 24 Mon., August 27 Tues., August 28 Wed., August 29 Thurs., August 30

    1.7631.8861.9551.9571.9531.9291.9001.8701.8671.8551.8551.859

    1,3581,4221,1231,1101,165

    235119

    92545237

    2

    20/6,770

    1.7631.8871.9551.9471.9501.9341.9001.8701.8671.8551.8551.859

    1,3581,4221,1231,1121,161

    233119

    92545237

    2

    74/6,766 124/5,502

    Total Contracts Traded/Open Interest

    AUG12SEP12OCT12NOV12DEC12JAN13FEB13MAR13APR13MAY13JUN 13JUL 13AUG 13SEP 13OCT 13NOV 13DEC 13

    62/1,710

    53.5056.5058.5060.2561.7558.5058.0057.0057.4558.0058.0055.0053.5053.0051.0050.0049.75

    276305279245299

    423438332829212016151515

    DRY WHEY FUTURES for the week ended August 30, 2012 (Listings for each day by month, settling price and open interest)

    53.5258.1860.5061.0363.2360.0058.0057.0057.4558.0058.0055.0053.5053.0051.0050.0049.75

    271306279245297

    413538332829212016151515

    20/1,704 8/1,435

    Fri., August 24 Mon., August 27 Tues., August 28 Wed., August 29 Thurs., August 30

    53.5057.9360.0060.2561.7558.9558.5057.0056.5055.4855.0055.0053.5053.0051.0050.0049.75

    1/1,676

    53.5058.0060.0060.2562.0058.9558.5057.0056.5055.4855.0055.0053.5053.0051.0050.0049.75

    276302275243296

    353137292526212016151515

    14/1,677

    276302275243295

    353137292526212016151515

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

    53.5258.1861.6862.2063.5560.0058.5057.0057.4558.0058.0055.0053.5053.0051.0050.0049.75

    271306279245297

    413738332829212016151515

    Dry Products* August 31, 2012

    DRY BUTTERMILK(FOB)Central & East: $1.2700-$1.3525(+2).(FOB) West: $1.2200(+5)-$1.3900(+4); mostly $1.2550(+5 1/2)-$1.2950(+2 1/2).

    EDIBLE LACTOSE(FOB)Central and West: $.6800-$.9300(-2); mostly $.7800-$.8750.

    NONFAT DRY MILKCentral & East: low/medium heat $1.3275(+1)-$1.7200(+5 1/2); mostly $1.3700-$1.6200(+11). high heat $1.3775(+1)-$1.6000.West: low/medium heat $1.2300-$1.7500(+13 1/2); mostly $1.2900(+2)-$1.6500(+15). high heat $1.3000(+5)-$1.7500(+32).Calif. manufacturing plants: extra grade/grade A weighted ave. $1.2571(+.0675) based on 8,773,562 lbs. Sales to CCC: 0 lbs.

    WHOLE MILK POWDER (National): $1.5400(+4)-$1.6300.

    DRY WHEYCentral: nonhygroscopic $.5050(-3 1/2)-$.5775; mostly $.5200(+2)-$.5600(+1/4).West: nonhygroscopic $.5600(+1 1/4)-$.6200(+3); mostly $.5700(+2)-$.5900(+2).(FOB) Northeast: extra grade/grade A $.5675(+1)-$.5850(+1).

    ANIMAL FEED (Central): Whey spray milk replacer $.3975(+1 1/2)-$.5325(+1 1/4).

    WHEY PROTEIN CONCENTRATE (34 percent): $1.0700-$1.2750; mostly $1.1200(+3)-$1.1650.

    CASEIN: Rennet $3.7500-$4.4000; Acid $4.1500-$4.7000.

    *Source: USDA’s Dairy Market News

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

    YEAR2006200720082009201020112012

    JAN13.3913.5619.3210.7814.5013.4817.05

    FEB12.2014.18 17.03 9.31 14.2817.0016.06

    MAR11.1115.0918.0010.4412.7819.4015.72

    APR10.9316.0916.7610.7812.9216.8715.72

    MAY10.8317.6018.18 9.8413.3816.5215.23

    JUN11.2920.1720.25 9.9713.6219.1115.63

    JUL10.9221.3818.24 9.9713.7421.3916.68

    AUG11.0619.8317.3211.2015.1821.6717.73

    SEP12.2920.0716.2812.1116.2619.07

    OCT12.3218.7017.0612.8216.9418.03

    NOV12.8419.2215.5114.0815.4419.07

    DEC13.4720.6015.2814.9813.8318.77

    Monday Tuesday Wednesday Thursday Friday

    Chicago Mercantile Exchange

    Aug. 27 Aug. 28 Aug. 29 Aug. 30 Aug. 31

    Weekly average (Aug. 27-31): Barrels: $1.7995(-.0050); 40-lb. Blocks: $1.8505(+.0065).Weekly ave. one year ago (Aug. 29-Sept. 2, 2011) Barrels: $1.7275; 40-lb. Blocks: $1.7900.

    Cheese BarrelsPriceChange

    Cheese 40-lb. blockPriceChange

    Extra Grade NDMPriceChange

    Grade A NDMPriceChange

    Weekly average (Aug. 27-31): Extra Grade: $1.6250(NC); Grade A: $1.6860(+.0250).

    Grade AA ButterPriceChange

    Class II Cream (Major Northeast Cities): $2.4480(-.0405)–$2.5560(-.1070).Weekly average (Aug. 27-31): Grade AA: $1.8285(+.0285).

    $1.8400+2

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

    Cash prices for the week ended August 31, 2012

    $1.8000 -1/4

    $1.8525NC

    $1.6250NC

    $1.6650NC

    $1.8200+1 3/4

    $1.8075 -1/4

    $1.8575-1 1/4

    $1.8400NC

    $1.6250 NC

    $1.7000NC

    $1.8400NC

    $1.6250 NC

    $1.7000NC

    $1.8025+1/4

    $1.6250 NC

    $1.8025 NC

    $1.8525 NC

    $1.6650 NC

    $1.7775 -3

    $1.8200 -3 3/4

    $1.8100 +1

    $1.8700+1 3/4

    $1.6250 NC

    $1.7000+3 1/2

    Reprinted with permission from the Aug. 31, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Aug. 31, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

  • August 31, 2012 — 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.cheeseshredder.com

    NEWS/BUSINESS MARKET INDICATORS

    www.cheeseshredder.comCHANHASSEN, Minn. — Powder-Solu-tions Group has expanded its corporate office and warehouse space here.

    The expansion project adds 7,000 square feet of space to the existing 27,000-square-foot facility. The expansion will provide additional space for staff, engineering, system and component test-ing, component servicing and spare parts.

    Powder-Solutions adds office, warehouse The company says the expansion was

    caused by growing demands in the bulk powder handling industry and positions the company to maintain and expand its industry foothold domestically and abroad.

    For more information about new job openings , call 1-877-939-0510 or visit www.powder-solutions.com/careers. CMN

    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 price1Adj. price to 38% moistureSales volume2Moisture content

    Butter:Average price1Sales volume2

    Nonfat Dry Milk:Average price1 Sales volume2

    Dry Whey:Average price1 Sales volume2

    For the week ended: 8/11/12

    $1.717111,572,541

    *$1.8048*$1.7138

    *10,004,452$34.71

    $1.66323,561,118

    *$1.2439*17,615,499

    *$0.5304*8,770,067

    *$1.7540*11,772,770

    *$1.8699*$1.7820

    *9,502,681$34.94

    $1.71543,151,123

    *$1.2573*15,651,726

    *$0.5396*8,660,052

    8/18/12 8/4/12

    $1.710712,302,501

    $1.8061$1.7190

    9,465,36334.86

    $1.63113,288,718

    *$1.2145*12,927,686

    *$0.52016,887,170

    $1.812111,848,573

    $1.9248$1.8320

    10,202,94534.86

    $1.75762,349,268

    $1.295515,725,977

    $0.54768,648,897

    8/25/12

    International Dairy Markets August 31, 2012

    Oceania Butter: 82 percent butterfat $2,800(+100)-$3,400(+250). Cheddar Cheese: 39 percent maximum moisture $3,400(+300)-$4,000.Skim Milk Powder: 1.25 percent butterfat $2,950(+200)-$3,450(+350).Whole Milk Powder: 26 percent butterfat $2,850(+150)-$3,400(+300).* Source: Dairy Market News. Prices reported in U.S. dollars per metric ton, F.O.B. port. To convert to price per pound: divide price by 2,204.6 pounds.

    Western and Eastern Europe Butter: 82 percent butterfat $3,500(+200)-$3,900(+200); 99 percent butterfat $4,100(+125)-$4,600(+175).Skim Milk Powder: 1.25 percent butterfat $3,100(+225)-$3,500(+300).Whole Milk Powder: 26 percent butterfat $3,400(+225)-$3,700(+200).Whey Powder: Nonhygroscopic $1,250(+75)-$1,1400(+100).

    Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. #The total contracts traded for Class III milk includes electronically-traded contract volumes.

    Total Contracts Traded/Open Interest

    Cash-Settled NDM

    413347294238193

    19/1,485

    AUG12SEP12OCT12NOV12DEC12

    Cash-Settled Butter

    AUG12SEP12OCT12NOV12DEC12JAN13FEB13MAR13APR 13MAY 13JUN 13JUL 13AUG 13

    Total Contracts Traded/Open Interest

    874905772728611

    74129

    514736454110

    13/4,323

    167.00182.00182.00182.50181.50181.00181.20 182.50183.00183.50183.50183.50180.50

    125.43146.00159.90163.50163.00

    413347293241193

    13/1,487

    168.59184.00184.50186.75183.50181.20181.20182.50183.00183.50183.50183.50180.50

    894905767737611

    75131

    524736454110

    119/4,351

    125.43146.00159.90163.50163.00

    413347293 242193

    5/1,078

    168.59185.00184.75186.75183.75181.20181.20182.50183.00183.50183.50183.50180.50

    894905767737611

    75131

    524736454110

    4/3,457

    Fri., August 24 Mon., August 27 Tues., August 28 Wed., August 29 Thurs., August 30*

    Fri., August 24 Mon., August 27 Tues., August 28 Wed., August 29 Thurs., August 30

    Total Contracts Traded/Open Interest

    Fri., August 24 Mon., August 27 Tues., August 28 Wed., August 29 Thurs., August 30

    AUG12SEP12OCT12NOV12DEC12JAN13FEB13MAR13APR13MAY13JUN13JUL13AUG13SEP13OCT13NOV13DEC13JAN14

    Class III Milk#

    17.7219.0619.9920.1620.0519.6519.2819.0719.0818.7518.6318.8118.5718.2217.9117.7817.7817.60

    4,1435,0835,0383,9223,4821,3071,1601,033

    793659573463456333279233230

    1

    923/29,188

    17.7319.3620.3420.5520.4119.9619.5519.3019.2818.9818.7518.8518.6518.3418.0517.9117.7817.60

    4,3825,0535,1574,0303,5321,3641,1571,036

    796668571466458335281233230

    1

    1,489/29,750

    17.7319.1120.1920.2120.2119.9019.5019.2819.2318.9518.7518.8518.6618.3718.1617.9117.7817.60

    4,3824,9025,3214,1153,5741,3691,1751,053

    806674582469458335287235233

    1

    1,206/25,589

    Total Contracts Traded/Open Interest

    Class IV Milk

    AUG12SEP12OCT12NOV12DEC12JAN13FEB13MAR13APR13MAY 13JUN 13

    15.6518.1919.4719.9719.9919.1018.7518.5017.5017.5017.25

    134120

    756468585657

    772

    15.7618.1919.4719.9719.9919.2019.0019.0018.0018.0018.00

    134120

    756468585657

    772

    0/648

    15.76 18.2019.4719.97 19.9919.2019.0019.0018.0018.0018.00

    134120

    756468585657

    7 72

    0/648

    CME FUTURES for the week ended August 30, 2012

    Fri., August 24 Mon., August 27 Tues., August 28 Wed., August 29 Thurs., August 30

    5/514

    17.7219.0819.9720.1020.0519.6919.3219.0819.1618.8018.6518.8118.5418.2217.9117.7817.7817.60

    15.6518.1919.4919.9919.9919.1018.7518.5017.5017.5017.25

    127.00144.50158.00161.23163.00

    167.00182.00182.00181.50181.00181.00181.20182.50183.00183.50183.50183.50180.50

    11/4,326

    1/1,482

    152/648

    721/29,011

    17.7219.1020.0119.9819.9519.6319.2319.0019.1618.8018.6518.8118.4918.1717.9117.7817.7817.60

    908/28,817

    15.6518.1919.4919.9719.9919.1018.7518.5017.5017.5017.25

    134120

    756268

    867772

    0/496

    127.00144.50158.03161.23162.00

    413347294237191

    10/1,482

    167.00180.00181.50181.50181.00181.00181.20182.50183.00183.50183.50183.50180.50

    874902778725612

    74129

    514736454110

    40/4,324

    4,1325,1264,9113,7823,4621,2871,125

    989786658568463453333279232230

    1

    134120

    756468585657

    772

    413347294237191

    874905776726612

    74129

    514736454110

    127.00144.50158.00161.00162.00

    4,1325,1104,9863,8843,4711,2781,1391,005

    787659568463453333279233230

    1

    Class III: Price Skim Price Class IV:Price Skim Price Class II:Price Butterfat PriceComponent Prices: Butterfat Price Nonfat Solids Price Protein Price Other Solids Price Somatic Cell Adjustment Rate Product Price Averages:Butter Nonfat Dry Milk Cheese Dry Whey

    Class & Component PricesAugust 2012

    $ 17.73/cwt.$ 11.72/cwt.

    $ 15.76/cwt.$ 9.68/cwt.

    $ 15.64/cwt.$ 1.8409/lb.

    $ 1.8339/lb.$ 1.0756/lb.$ 3.1211/lb.$ 0.3462/lb.$ 0.00088/1,000 scc

    $ 1.6859/lb.$ 1.2543/lb.$ 1.7682/lb.$ 0.5352/lb.

    July 2012

    $ 16.68/cwt.$ 11.28/cwt.

    $ 14.45/cwt.$ 8.97/cwt.

    $ 14.51/cwt.$ 1.6626/lb.

    $ 1.6556/lb.$ 0.9965/lb.$ 3.0430/lb.$ 0.3123/lb.$ 0.00084/1,000 scc

    $ 1.5386/lb.$ 1.1744/lb.$ 1.6857/lb.$ 0.5023/lb.

    Reprinted with permission from the Aug. 31, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

    http://www.cheeseshredder.com/

  • 4 CHEESE MARKET NEWS® — August 31, 2012

    Perspective:Industry Issues

    Margin insurance — without supply management — makes sense

    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 !

    The severe drought and high feed costs have focused us all on the impor-tance of adopting a better safety net for dairy producers. U.S. milk production is already slowing as feed costs are hitting dramatic new levels and farm equity is threatened. Some are predicting that farm milk prices won’t rise quickly enough to offset the rapidly rising feed costs. That means an increasing number of producers will feel the margin squeeze more acutely in the next few months, and herd reductions will accelerate.

    Well over two years ago, the National Milk Producers Federation developed a reform proposal for dairy policy that was basically on the right track. It elimi-nated the current safety net programs and replaced them with a new margin insurance program that would help dairy producers when the difference between feed costs on milk prices narrows below profitable levels. In order to get some of its membership on board, NMPF also agreed to force any dairy producer wanting access to margin insurance to be subject to periodic reductions in

    their paycheck, effectively imposing government-mandated milk production limits on the entire dairy supply chain.

    We commend the leadership that Jerry Kozak and NMPF brought to this issue, but it’s time to acknowledge that by embracing a supply management program, called Dairy Market Stabilization, the effort took a step backwards. Supply management was guaranteed to be controversial and an impediment to progress. It is a policy that few actually like (even its congres-sional sponsor has said he isn’t fond of such policies), but somehow it has been sold as being essential, regardless of widespread dissension among producers and aggressive opposition by processors.

    Members of IDFA (and many oth-ers) believe this is an unnecessary and troublesome requirement to burden our dairy producers with for many reasons, but particularly because of its negative consequences on both consumers and U.S. dairy exports. Our exports in the first half of this year were up 8 percent in volume and 19 percent in value from last year’s record pace. To take advantage of grow-

    ing markets, dairy food companies have invested in new and expanded facilities in Colorado, New York, South Dakota, Idaho, Iowa and Texas, significantly in-creasing demand for milk production in many areas.

    What’s more, our members who are exporting tell us their customers and com-petitors around the world are watching to see what policy direction we take in the United States as part of their decision-making for future supply contracts. The risk of putting the brakes on this growth opportunity frankly seems foolish.

    The proposed Dairy Market Stabiliza-tion Program would routinely increase our domestic prices relative to international prices and make our dairy industry less competitive. And, the proposed solution to this problem in the bill — turning the program off once it starts working as intended — is truly a case of closing the barn doors after the horses have left.

    Our dairy industry needs a margin insurance program now, and everyone, from producers to processors to domes-tic consumers to exporters and even to taxpayers who fund food and nutrition programs, needs this to be put it in place without the controversial stabilization program provisions.

    Such an approach has been drafted by Reps. Bob Goodlatte, a Republi-can from Virginia, and David Scott, a Democrat from Georgia. Their bipartisan amendment keeps 80 percent of what is proposed by the Dairy Security Act. More than 90 percent of dairy producers would pay less in premiums under the Goodlatte-Scott amendment. By drop-ping the stabilization program, dairy producers would never have their income reduced due to a government mandate in order to meet their government-set base production level.

    I frequently hear that there’s too much “my way or the highway” in Washington. Well, for over a year, we have been told that our dairy industry must accept the Dairy Market Stabilization Program because

    of federal budget constraints. But that’s not true. The Goodlatte-Scott amendment doesn’t bust the budget and, in fact, costs nearly the same as the Dairy Security Act.

    The Goodlatte-Scott amendment rep-resents the true middle-ground approach that will move our industry forward, with policies that provide an effective safety net for dairy producers without restraining our ability to serve our growing markets. By eliminating a market-intrusive pro-gram that is anathema to many members of Congress, the amendment will help smooth some of the bumps in the road to passage of a farm bill this year and get much needed help to dairy producers without negative impacts on anyone else who is part of the U.S. dairy industry.

    At a recent briefing held by the House Dairy Farmers Caucus, Dr. Mark Stephen-son, director of dairy policy analysis at the University of Wisconsin College of Agricultural and Life Sciences, pointed to the speed at which circumstances change in the dairy industry, noting that the heat and drought have raised concern that current milk production will be affected and the dairy industry may not have enough milk. Stephenson told caucus members and staff that most producers prefer to make independent production decisions; they want a simple safety-net program and they don’t want handouts — they want to compete and let the market decide long-run average prices. His analysis of the Goodlatte-Scott amendment indicated that the insurance program would smooth out market volatil-ity — as extreme volatility is another issue that farmers want addressed.

    As more and more industry stake-holders are suggesting, let’s support this compromise solution — margin insurance without supply management — to sustain a vibrant and growing dairy industry. CMN

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

    NEWS/BUSINESS

    DE PERE, Wis. — Dairy Cares, a group of individuals in the Wisconsin dairy industry who raise funds for nonprofit organizations, recently announced that it has raised $60,000 for Children Hospital of Wisconsin at the second annual Dairy Cares Garden Party, held July 28. The event more than doubled the contributions from last year.

    “I am so thrilled,” says Jim Ostrom, Dairy Cares chair. “The Journey of this event is one-of-a-kind. The support and friendships that have been created are amazing. The generosity of our sponsors, guests and the Dairy Cares Executive Committee is an incredible gift to the children and families that utilize Chil-dren’s Hospital of Wisconsin.”

    Sponsors of the event include: American Foods Group, Bader Rutter, Baylake Bank, Bayland Buildings, Brian

    Dairy Cares event raises more than $60,000Retzlaff Trucking, Complete Concrete, CRA, Dan Ellsworth, Grassland Dairy Products, Greenstone, Hydroclean Equipment, JLS Electric, LDS, Mark’s Electric, Mike DeCoster Trucking, MilkSource Modern Dairy Systems, Navigator Planning Group, Novak’s Cheese, Overhead Solutions, Pagel’s Ponderosa, Phil’s Pumping and Fabri-cating, River Valley, Schenk and Associ-ates, Semex, Shiloh Dairy, Tri County Overhead Doors, Troy’s Transport and Waste Control Services.

    Member sponsors include: Dan and Janina Siemers, Jamie Endvick and Shan-non McWilliams, John and Keri Vosters, Kristy Pagel and Rick Schwenck, Larry and Kay Ferguson, Michael Haddad, Mike and Jennifer North, Thomas Seif-ert and Nancy Thompson, Tim and Deb O’Harrow and Zillges Materials. CMN

    RICHFIELD, Wis. — DCI Cheese Co. recently announced the launch of its “King or Queen for a Day” promotion, an enter-to-win contest sponsored by King’s Choice, the company’s line of imported Danish and Dutch cheeses.

    One grand prize winner will receive a $500 SpaFinder.com gift card that can be used at the spa of their choice. In-store shelf talkers with tear pads featur-ing a coupon for King’s Choice specialty cheeses can be found in participating retailers throughout the Sept. 1-Oct. 31 contest period.

    In addition, consumers with smart phones can connect directly to www.KingsChoiceCheese.com via the promo-tional display’s QR code to access the online entry form and product coupon or to view recipes and wine pairings.

    “King’s Choice offers consumers

    DCI Cheese to crown ‘King or Queen for a Day’a wonderfully decadent selection of cheeses,” says Katie Jury, DCI’s market-ing manager. “With this promotion we further extend this decadence to one lucky customer, treating them to a day at the spa of their choice where they can relax and unwind like royalty.”

    The King’s Choice line is available nationwide in bulk and retail sizes in the following varieties: Danish Blue, Edam, Fontina, Gouda, Smoked Gouda, Havarti, Havarti with Caraway, Havarti with Dill, Havarti with Herb, Havarti with Jalapeno, Light Havarti, Leyden and Maasdam.

    For more details about the promo-tion, visit www.KingsChoiceCheese.com. The winner will be announced in late November on the company’s Facebook page at www.facebook.com/DCICheese. CMN

    Reprinted with permission from the Aug. 31, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the Aug. 31, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

  • August 31, 2012 — CHEESE MARKET NEWS® 5

    NEWS/BUSINESS

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    SACRAMENTO, Calif. — The Sacra-mento Superior Court late last week ruled against a People for the Ethical Treatment of Animals (PETA) petition challenging the California Milk Advi-sory Board’s (CMAB) marketing claims about the care provided by California dairy farmers to their cows.

    CMAB’s ongoing promotional cam-paign has called attention to the efforts of California dairy farmers to care for the health, comfort and welfare of their cows while acting as stewards of the environment.

    In its petition, PETA challenged these claims as “false, unwarranted, misleading and in violation of respon-dents’ statutory and administrative duties.”

    In a decision filed Aug. 23, the court denied PETA’s petition, stating among its reasons that “no promotional pro-gram for milk or dairy products made use of any false or unwarranted claims about the products.”

    The court decision determined that

    Sacramento court rules against PETA petition that challenged California dairy marketingthe California Department of Food and Agriculture (CDFA) and CMAB members “have extensive experience and knowledge that provides strong evi-dentiary support for the claims made by the challenged marketing statements.

    “In an effort to respond to consumer concerns about the care provided to dairy cows, the statements convey a message that dairy farmers work full time to secure the health and comfort of their cows by providing a nutritious diet, good medical care and healthy living arrangements consistent with the highest animal welfare standards — matters shown to be supported by the direct aggregated experience and knowledge of department (CDFA) personnel and (CMAB) members,” the court decision says.

    CMAB welcomed the court’s deci-sion.

    “California dairy families take the well-being and care of their cows very seriously,” says Jennifer Giambroni, director of communications, CMAB.

    “The CMAB’s key responsibility is, and always has been, to market and to create a demand for California dairy products. Through its role, the California Milk Ad-visory Board also contributes to creating choices for consumers around buying dairy products, and we look forward to continuing to play a role in Americans’ dairy choices.”

    Richard Michel, CMAB chair, adds that the decision is very rewarding for California dairy farmers and families who work hard to care for their cows while producing a healthy product that consumers love.

    “As a California dairy farmer and chair of CMAB, I am proud of their dedication and the programs that allow us to share that passion with consumers as we promote California dairy here, across the U.S. and abroad,” he says.

    Western United Dairymen (WUD) also praised the court’s decision.

    “CMAB is correct in asserting the fact California dairy families care deeply about the care and health of their cows,”

    says Michael Marsh, CEO, WUD. “We owe this victory to the proud dairy families that provide our country and the world with fine milk and dairy products and to the wonderful industry programs that make all this possible.”

    David Perle, senior media coordi-nator for PETA, said the organization is continuing a review of the judge’s decision in order to determine its next step in the case.

    “In denying the petition, the judge excluded all the evidence from peer-reviewed scientific journals and USDA surveys,” Perle says. “The evidence shows that disease and suffering is ram-pant — more than 30 percent of cows suffer from udder infections, painful swollen knees and hoof disorders, such as foot rot, ulcers and abscesses, result-ing in lameness and premature death. Mortality is an increasingly severe prob-lem on California dairy farms, and many cows don’t even survive long enough to be hauled off to slaughter because they lack proper shelter and care.” CMN

    WASHINGTON — USDA in Monday’s Federal Register announced a final rule that amends the pool plant defi-nition of the Mideast milk marketing order. The decision is based on testi-mony and evidence given at a public hearing held in Cincinnati, Ohio, Oct. 4-5, 2011.

    The amendment will more ad-equately identify the plants that service the fluid milk needs of the marketing order. Specifically, the amendment will regulate fluid milk plants physically located within the Mideast marketing area that have a Class I utilization of at least 30 percent and whose combined

    USDA final rule amends Mideast milk orderClass I route disposition and transfers into federal milk marketing areas is greater than 50 percent.

    The amendment originally was proposed in a recommended decision issued Feb. 24, 2012. The program received only four comments all in support of the recommended decision. Producers whose milk is pooled on the Mideast milk marketing order approved these amendments.

    The order, as amended, will become effective Oct. 1.

    For more information, contact Paul Huber at 330-225-4758 or e-mail [email protected] CMN

    SPRINGFIELD, Mo. — A Missouri couple recently entered into a consent agreement with the State of Missouri over a case that began in 2009 over the distribution and sale of raw milk.

    The Missouri State Milk Board through Missouri Attorney General Chris Koster filed a lawsuit against Armand and Teddi Bechard in 2009 for allegedly violating a state law that prohibits the distribution and sale of raw milk unless a person purchases or requests delivery of raw milk or cream directly from a farm. According to the lawsuit, Bechard Family Farm sold raw milk in the parking lot of Mama Jean’s Natural Market in Springfield, Ill., to two undercover investigators with the Springfield-Greene County Health Department.

    Koster said at the time the lawsuit was filed that the law does not prohibit the sale of raw milk, but it does prohibit them from selling it from a parking lot.

    On July 31, the Bechards entered into a settlement agreement that pro-hibits them from selling milk to strang-ers who have not previously arranged for the sale and purchase of their raw

    Bechard Family Farm reaches agreement with State of Missouri over raw milk sales

    milk, according to Gary Cox, general counsel for the Farm-to-Consumer Legal Defense Fund (FTCLDF), in his sum-mary of the settlement.

    However, Cox says, after the sale has been arranged, the Bechards can deliver the raw milk anywhere they want, including to the customer’s home, to a central distribution point like a parking lot in a shopping center, or to the customer at the Bechards’ own farm. The prohibition against selling raw milk to strangers means when making a delivery to a central distribution point or other location, the Bechards can’t sell milk to anyone who walks up that has not previously arranged for the sale and purchase of the raw milk, Cox says.

    In entering into the consent judg-ment, the Bechards did not make any admissions to any allegations from the Missouri State Milk Board.

    The Green County, Mo., district at-torney’s office also previously brought a criminal action against Armand Bechard for allegedly selling milk off the farm, and Bechard was acquitted on appeal in January 2011. CMN

    ARLINGTON, Va. — Cooperatives Working Together (CWT) has accepted 14 requests for export assistance from Dairy Farmers of America and Foremost Farms to sell 4.58 million pounds (2,078 metric tons) of Ched-dar and Gouda to customers in Asia, the Middle East, North Africa and the South Pacific. The product will be delivered September 2012 through February 2013.

    In 2012, CWT has assisted member cooperatives in making export sales

    CWT assists 4.6 million pounds of exportsof Cheddar, Monterey Jack and Gouda totaling 78.3 million pounds, and butter and anhydrous milkfat totaling 56.4 mil-lion pounds (adjusted for cancellations) to 33 countries on four continents. On a butterfat basis, the milk equivalent of these exports is 1.95 billion pounds, or the same as the annual milk production of 93,000 cows.

    CWT will pay export bonuses to the bidders when delivery of the product is verified by the submission of the required documentation. CMN

    Reprinted with permission from the Aug. 31, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

    http://www.johnsonindint.com/

  • 6 CHEESE MARKET NEWS® — August 31, 2012

    For more information please visit www.cheesemarketnews.com/order.html

    NEWS/BUSINESS

    COLUMBIA, Mo. — The Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri this week published a mid-year update to its 2012 baseline prepared in January.

    The baseline update assumes a continuation of current agricultural and biofuel policies. For example, it is assumed that provisions of the 2008 Farm Bill will be extended into the future and that the Renewable Fuel Standard (RFS) remains in place with the cellu-losic mandate waived. A new farm bill or waiving more of the RFS could lead to important market effects, FAPRI notes.

    The report notes that corn prices may average $8.10 per bushel for the crop harvested in 2012, exceeding last year’s record by about 30 percent. Higher corn prices would contribute to steep reductions in corn domestic use, exports and carryover stocks.

    The increase in feed prices results in reduced production of meat and milk, pushing up prices for those products, FAPRI notes.

    The baseline shows milk production reaching 201.0 billion pounds in 2012, up from 196.2 billion pounds in 2011. However, milk production is projected to reach only 199.8 billion pounds in

    FAPRI publishes mid-year update to baseline of agricultural market production, pricing2013, then increase slightly each year to 211.8 billion pounds in 2017.

    Milk per cow, meanwhile, is expected to average 21,717 pounds in 2012, up from 21,345 pounds in 2011, and in-crease to 21,841 pounds in 2013. Milk per cow continues to increase the next few years to 23,066 pounds by 2013.

    The number of U.S. dairy cows is expected to average 9.25 million head in 2012, the report says. That number will drop in 2013 and 2014 before rising again in 2015 and 2016 and reaching 9.18 million head in 2017.

    American cheese production is projected to reach 4.33 billion pounds in 2012, up from 4.27 billion pounds in 2011, FAPRI says. American cheese pro-duction will steadily increase through-out the baseline period, reaching 4.68 billion pounds in 2017.

    Other cheese production will reach 6.47 billion pounds in 2012, up from 6.33 billion pounds in 2011, according to baseline projections. Other cheese production will increase in 2013 to 6.50 billion pounds and will continue to increase throughout the baseline period to 7.05 billion pounds in 2017.

    Butter production is projected to reach 1.88 billion pounds in 2012, up

    from 1.81 billion pounds in 2011. How-ever, butter production will decrease in 2013 to 1.84 billion pounds before rising throughout the rest of the projection period to 1.93 billion pounds in 2017, the report says.

    Nonfat dry milk (NDM) production follows a similar pattern in the baseline, increasing to 1.90 billion pounds in 2012 from 1.89 billion pounds in 2011, falling in 2013 to 1.85 billion pounds and then climbing to 2.20 billion pounds in 2017.

    Prices for 40-pound Cheddar blocks at the Chicago Mercantile Exchange are expected to average $1.56 per pound in 2012, the report says, coming in below last year’s average of $1.81 per pound. Cheddar prices between 2013-2017 all

    are forecast in the $1.74-$1.76 range.NDM prices also average below last

    year’s $1.55 per pound price at $1.35 in 2012 but will increase over the projec-tion period, reaching $1.44 by 2017.

    Butter prices follow a pattern similar to cheese, decreasing from 2011’s $1.96 per pound price to $1.55 per pound this year, and increasing to $1.67 per pound in 2013 and 2014, according to baseline projections.

    The all-milk price is expected to average $17.50 per hundredweight this year, falling from last year’s average of $20.25. The all-milk price will rise to $19.23 in 2013.

    The report can be viewed at www.fapri.missouri.edu. CMN

    DES MOINES, Iowa — Iowa Secretary of Agriculture Bill Northey this week announced that, starting today, the Iowa Department of Agriculture and Land Stewardship will require aflatoxin screening and testing of milk received in the state. The order requires milk processors to screen all Grade A and Grade B farm bulk milk pickup tankers and farm can milk loads for aflatoxin on a weekly basis, continuing indefinitely.

    Aflatoxin is a naturally-occurring by-product of a type of mold that can

    Iowa to require milk screening for aflatoxinaffect crops like corn used in animal feed. The department also is instituting a state-wide corn sampling program.

    “We were well aware that aflatoxin could be an issue this year due to the historic drought conditions,” Northey says. “Now that farmers are starting to harvest silage, and corn in some cases, it is appropriate to begin this screening process to make sure our milk supply remains safe.”

    For more information, visit www.iowaagriculture.gov. CMN

    WASHINGTON — FDA recently sub-mitted its second “Annual Report on Food Facilities, Food Imports, and FDA Foreign Offices,” which is required by the Food Safety Modernization Act (FSMA).

    The report briefly describes the scope of FDA’s responsibility and its ac-tivities in protecting the U.S. food supply under its jurisdiction, and it discusses how federal, state and local agencies cooperate with FDA in that effort. The report provides data for fiscal year 2011 on the cost and number of domestic and foreign food facility inspections; the numbers of field samples analyzed to support FDA’s compliance actions; and FDA’s foreign posts and staff who extend the international impact of FDA.

    FDA regulates $417 billion worth of domestic food and $49 billion worth of imported foods, the report says. FDA oversees more than 420,000 domestic and foreign registered facilities and spent approximately $189 million on in-spections in fiscal 2011. Of this amount,

    FDA submits annual report on food facilities$131.3 million was used for FDA inspec-tions at 19,073 domestic facilities, and $33.2 million was used for inspections at 995 foreign food facilities.

    “FDA has devoted significant time and resources to building a fully inte-grated national food safety system in collaboration with regulatory and public health partners,” the report says. “FSMA encourages and enables FDA to make further progress toward an integrated national food safety system.”

    In 2011, FDA established several working groups to begin the process of implementing FSMA provisions that directly impact partnerships with state, local, tribal and territorial partners, the report says. Additionally, FDA continues to support the Partnership for Food Protection work groups on training, response, risk-based work planning and information technology.

    To read the full report, visit www. fda .gov /Food/FoodSafety /FSMA/ucm315486.htm. CMN

    BRUSSELS, Belgium — The Euro-pean Commission recently entered the name of the Italian cheese “Squac-querone di Romagna” into the register of protected designations of origin (PDO) and protected geographical indications (PGI).

    Squacquerone di Romagna PDO is a soft cow’s milk cheese with a very creamy texture. It is highly spreadable,

    Squacquerone di Romagna given PDO statushas a mother-of-pearl white color and a delicate, distinctive milk aroma with a grassy note. Its taste is described as pleasant, sweet, slightly acidic and subtly salty.

    The production area for Squac-querone di Romagna PDO includes the Ravenna, Forli-Cesena, Rimini, Bolo-gna and part of the Ferrara provinces of Emilia-Romagna, Italy. CMN

    Reprinted with permission from the Aug. 31, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Aug. 31, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

    http://www.cheesemarketnews.com/order.html

  • August 31, 2012 — CHEESE MARKET NEWS® 7

    Cream Association (IICA) board meet-ings will still take place Sept. 19 at the Renaissance Mayflower Hotel. The afternoon meetings will be followed by a reception, dinner and entertainment by The Capitol Steps.

    IDFA says registration fees will be refunded as quickly as possible. Con-tact Patrick Crosson, IDFA meetings assistant and registrar, at [email protected] with any questions. CMN

    For more information please visit www.wdpa.net

    Date: Tuesday, October 2

    Time: 5:00—7:30 p.m.

    World Dairy Expo

    Alliant Energy Center

    Madison, WI

    AUCTION

    MARK YOUR CALENDAR

    You will receive your auction invitation in the mail in early-September

    ! On the Auction Block….. Winning entries from the World Dairy Expo Championship Dairy Product Contest

    ! All bidders have an opportunity to win VISA gift cards

    ! A portion of the auction proceeds will be used to fund the Dr. Robert

    Bradley Scholarship Fund. This Scholarship will be awarded to a student pursuing a career in the dairy industry.

    Support your customers… Support the Dairy Industry

    Comings and goings … comings and goings

    Ben LaFrombois has been named vice president and general counsel for WOW Logistics, Appleton, Wis. LaFrombois, who comes to WOW from Ingles Markets in Black Mountain, N.C., where he served as in-house counsel, will support all of WOW’s warehousing, transportation, trade finance and real estate activities, as well as serve as the company’s primary risk manager.

    Christine Reitsma, an 18-year-old

    college student from Sauk Centre, Minn., was crowned the 59th Princess Kay of the Milky Way at the Minne-sota State Fairgrounds, St. Paul, Aug. 22. Reitsma will serve as the good-will ambassador for more than 4,000 Minnesota dairy farmers. Reitsma is the daughter of Paul and Carolyn Re-itsma of Sauk Centre, and will attend the University of Minnesota this fall studying applied economics. CMN

    ROCKLEIGH, N.J. — Henry Vorem-berg, founder of Swissrose Interna-tional, died here Aug. 27. He was 90.

    Voremberg was born in Frankfurt, Germany, and served in the United States Army during World War II after escaping the country.

    Upon becoming a United States citizen in 1944, Voremberg settled in New York City and founded Swissrose International, a cheese importing business that he sold to Beatrice Foods in 1984. Voremberg served as president of the Cheese Importers Association of America

    ObituaryHenry Voremberg

    from 1978-1980.Voremberg was preceded in death

    by his wife of 62 years, Beate Gold-man, in 2010. He is survived by his children, Leslie Kozupsky, co-founder of Roaring Brook Dairy LLC, Chap-paqua, N.Y., and David Voremberg, co-founder of Jana Foods LLC, Se-caucus, N.J., and four grandchildren.

    Donations may be made in Voremberg’s memory to the Henry and Beate Voremberg Testamentary Fund at the Jewish Federation of Northern New Jersey Endowment Foundation at www.jfnnj.org. CMN

    PEOPLE

    EVENTS

    SAN LUIS OBISPO, Calif. — Cal Poly will celebrate the 25-year anniversary of its Dairy Products Technology Center (DPTC) with a series of events here Oct. 25-27.

    “We want to bring together new and old friends, graduates and other industry members to the campus. We invite all who helped make DPTC a success to come back to visit us, catch up with their fellow colleagues, enjoy some Cal Poly ice cream, see what excit-ing changes are occurring at Cal Poly,

    WASHINGTON — The International Dairy Foods Association (IDFA) has can-celed its Policy & Politics Conference that was previously scheduled for Sept. 19-21. Legislators will likely be campaigning in their home districts during that time, so members of Congress will be unavailable for the IDFA programs and meetings.

    The IDFA and joint Milk Industry Foundation (MIF), National Cheese Institute (NCI) and International Ice

    TULARE, Calif. — Western United Dairy-men (WUD) will host a meeting on federal milk marketing orders and California’s milk marketing system here Sept. 20.

    Bill Wise, a federal milk marketing

    Anniversary celebration for Cal Poly Dairy Products Technology Center is Oct. 25-27

    and learn about how you can get more involved in shaping the future of DPTC,” says Phil Tong, director of the DPTC.

    The state of California, along with $200,000 of matching industry funds, established the DPTC in 1987. In the same year, the National Dairy Promo-tion and Research Board awarded a $2.5 million, five-year grant to Cal Poly and University of California-Davis to establish one of the six National Dairy Centers of Excellence locations. CMN

    IDFA cancels Policy & Politics Conference

    Western United Dairymen to host federal order educational meeting Sept. 20 in Calif.order administrator, will provide an over-view of federal orders and highlight the differences within the California system. A significant portion of the meeting will be allocated for questions.

    “After the last hearing decision, a lot of producers have shown interest in learning more about federal orders, and we wanted to give them an opportunity to gain knowledge about its potential

    impact on California while looking at the pros and cons,” says Tom Barcellos president of WUD.

    For more information, visit www.westernuniteddairymen.com. CMN

    MADISON, Wis. — The Dairy Business Innovation Center (DBIC) is offering a “Keys to Profitability” workshop here Sept. 24.

    DBIC says the workshop aims to provide insight on how to better analyze the critical components of businesses for more effective planning, including facets of pricing, products and promotion.

    “Regardless of where businesses are in their life cycle (pre-start-up, start-up, growing, mature, or winding down) they can all benefit from an objective assess-ment of themselves,whether its prepar-ing an initial business plan, updating their financial projections, evaluating

    DBIC plans profitability workshop Sept. 24expansions or other major business strat-egy changes, or considering changes in ownership,” says Rich Scheuerman, DBIC business strategy consultant.

    The workshop will begin with a pric-ing and profitability session. Afternoon sessions include: marketing and brand development, financing value-added products and efficient operational plan-ning. Industry professionals will share their knowledge and address specific business concerns from participants.

    The cost for attending the workshop is $25 and includes lunch. For more information or to register, visit www.dbicusa.org/conferences.php. CMN

    ST. PAUL, Minn. — The North Central Cheese Industry Association (NCCIA)Cheesemaking Contest judging will be held Sept. 18, and an auction will follow at the NCCIA annual conference Oct. 17.

    Entries for the contest, which is open to NCCIA members, must be received by Sept. 14.

    Contestants may submit one entry in the following two categories:

    • Cheddar blocks, entries must weigh at least 40 pounds and include the manufacturing date.

    • Barrels, entries must consist of three plugs of cheese taken at random

    NCCIA Cheesemaking Contest is Sept. 18with a barrel cheese trier. Plugs must be individually wrapped in aluminum foil (do not use plastic) and placed in a plastic bag.

    Contest winners will be announced before Sept. 28 and will be recognized during the banquet dinner of the annual conference.

    Barrel entry fees are $50. All other cheese entries are considered a dona-tion to NCCIA and are not charged a fee. Make checks payable to NCCIA. For more information on contest rules and entry submissions, visit www.northcentralcheese.org. CMN

    NASHVILLE, Tenn. — The annual Southern Artisan Cheese Festival will be held here Oct. 6.

    More than 75 varieties of cheese produced by 20 artisanal cheesemak-ers from six states will be on hand for sampling and purchase.

    There will be six educational ses-

    Southern Artisan Cheese Festival is Oct. 6sions this year led by cheese and bever-age professionals. When the schedule is set, an alert about class options and sign up details will be first sent to people who have purchased tickets already and those on the Southern Artisan Cheese Festival e-mail list. The list is accessible at www.southerncheesefest.com. CMN

    Reprinted with permission from the Aug. 31, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

    http://www.wdpa.net/

  • 8 CHEESE MARKET NEWS® — August 31, 2012

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    Reprinted with permission from the Aug. 31, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the Aug. 31, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

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    NEWS/BUSINESS

    Murray Goulburn to invest approximately $207 million in its dairy production facilitiesMELBOURNE, Australia — Murray Goulburn Cooperative (MG) recently announced plans to invest approxi-mately AU$200 million (approximately US$207 million) over the next three years in state-of-the-art manufacturing facilities for UHT milk, butter/spreads and cheese.

    Gary Helou, managing director of MG, in a letter told MG shareholders and suppliers that this investment will

    better equip the company to compete internationally and deliver the best possible returns to suppliers.

    “The emphasis will be on the dual objectives of global cost leadership and consumer-based dairy food innovation,” Helou says. “This is a significant initiative to rejuvenate and grow MG’s presence in consumer markets, in Australia as well as strategic international markets.”

    Helou says MG is the market leader

    in UHT milk in Australia. Strong growth opportunities for UHT dairy products have been identified in Australia, Asia and the Middle East, he says, and MG will need to invest to double its capac-ity to approximately 500 million liters.

    MG also is Australia’s largest bulk butter producer, Helou says, and its goal is to produce the lowest cost consumer butter and butter blends in Australia and tap into the strongly growing retail

    and foodservice markets in Asia and the Middle East.

    Helou says MG aims to establish a state-of-the-art, highly automated cheese cut-and-wrap facility to produce more than 60,000 metric tons annually of cheese blocks, shreds and slices. MG will evaluate a variety of pack formats and processing technologies for this facility to launch a new range of consumer cheese products. CMN

    Reprinted with permission from the Aug. 31, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

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  • 10 CHEESE MARKET NEWS® — August 31, 2012

    NEWS/BUSINESS

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    DALLAS — Dean Foods is cutting jobs at its Liberty Dairy plant in Evart, Mich., and says the plant likely will cease produc-tion by early 2013, as the plant’s largest customer is integrating milk processing and distribution into its own operations.

    The job cuts are a result of significant volume losses that already occurred and will continue to occur at the plant, as Meijer Co., which represented more than 90 percent of the plant’s produc-tion volume, has discontinued its long-time partnership with the Evart plant. In March, Grand Rapids, Mich.-based Meijer announced its acquisition of Bareman’s Dairy plant operations in Holland, Mich., which it has branded the Purple Cow Creamery. The creamery is producing the grocery chain’s own Meijer brand milk. (See “Meijer retail chain purchases Bareman’s Dairy plant operations” in the March 30, 2012, issue of Cheese Market News.)

    Dean Foods this week announced there will be 54 production and distri-bution job losses at the Liberty Dairy plant. Earlier this summer, Dean Foods

    Dean Foods’ Liberty Dairy plant likely to closeeliminated an additional 43 positions. After the current round of layoffs is complete in October and November, the Evart facility will employ approximately 60 people. Dean foods says it currently anticipates it can maintain one shift in production volume at the plant until February 2013, after which time the plant likely will cease production and operate solely as a distribution branch.

    “We sincerely regret this difficult de-cision and the impact it will have on our dedicated employees and the community of Evart,” says Gregg Tanner, president of the company’s Fresh Dairy Direct business and chief supply chain officer for Dean Foods. “We worked with our customer to delay the totality of the changes until early next year, with the goal of providing our employees as much time as possible to transition into new jobs. By early next year, however, we anticipate it will no longer be economically viable to operate the Evart plant, and we are significantly reducing the plant’s production this year.”

    The Liberty Dairy plant in Ev-art opened in 1934. CMN

    Tobisch notes the decision is difficult because “it affects people’s livelihoods, but we needed to make this move to help ensure our ability to meet customers’ requirements and foster the long-term viability of our company.”

    About 67 employees will be affected. Tobisch says operations will be moved

    to another existing Schreiber facility, although he could not specify where at this time. He notes that employees will have the option to transfer their position out of Ravenna, and some also will be offered separation packages.

    “This decision is not about the ef-forts or performance of our employees at the Ravenna plant,” he says. “They have built a tradition of quality and service and have had a positive impact on the plant and Schreiber.” CMN

    SCHREIBERContinued from page 1

    The facility opened in 1947. The 60 em-ployees that work at this plant were in-formed this week of the company’s plans.

    Jim Durkin, vice president of opera-tions for Kraft’s Cheese & Dairy business unit, says the plant’s closing is not a re-flection on the employees in Bentonville.

    “This is a strategic decision that has nothing to do with their performance, which has been excellent,” he says. “We will be working with our employees to help them through this transition.”

    Kraft will move production from this plant to one of its other plants as well as to external suppliers.

    Durkin says after careful analysis and review, the company identified some opportunities to combine pro-duction, gain efficiencies and reduce expenses in its Cheese & Dairy network.

    “We’ll achieve greater efficiencies of scale by combining the majority of the plant’s production with external part-ners,” he says. “Bentonville is a smaller plant and its size isn’t suitable for the scale the company needs going forward.”

    Kraft says it plans to sell the prop-erty once production has ended. CMN

    cheese options, she says.“The dairy industry has been ahead

    of the game,” she says.Patey notes that she has heard milk

    is one of the easier parts to implement in the new school meal guidelines, while the amounts required for whole grains, fruits and vegetables have presented more challenges.

    Julia Bauscher, director of school and community nutrition services for Jefferson County Public Schools in Louisville, Ky., and a member of the School Nutrition Association, says she thinks the changes are positive and are encouraging children to eat more healthy, nutritious foods.

    She notes that some of the maximum requirements have been a challenge, particularly in the meat/meat alternate category.

    For example, she says that 3-ounce beef patties are common, but that ex-ceeds the maximum 2 ounces of meat currently allowed.

    Because of this, the school district has had to work with some of its ven-dors to get products that meet the new standards.

    “It’s encouraged them to develop new products,” she says.

    Bauscher adds that most school kids want cheese on their burger, meaning the meat patty has to be even smaller in order to allow for the cheese and meat to meet the meat/meat alternate maximum.

    “We’re having to put our creativity caps on in some respects,” she says.

    Bascher says the food industry has been “amazing” in working with the school district to make products that meet the school’s needs.

    “The industry has been great in terms of stepping up, even before we asked, in terms of anticipating our needs and working on new products,” she says.

    Looking ahead to the breakfast program regulations to be implemented next year and the following year, accord-ing to the rules finalized by USDA earlier this year, breakfasts are required to offer fluid milk and may include a meat or meat alternative serving, such as a cheese or yogurt. The options for milk offered are the same as in the school lunch requirements.

    IDFA notes that yogurt is a good fit for breakfast since 4 ounces of yogurt can

    qualify as 1 ounce of meat alternative in the breakfast program and requires no preparation.

    Cheese also can be used as a break-fast item, either as part of a breakfast burrito or as a chunk or piece of cheese along with cereal, fruit and milk, IDFA says.

    The dairy industry isn’t sure what to expect when a la carte menu item rules are released.

    Frye and other IDFA members and staff met with Audrey Rowe, adminis-trator for USDA’s Food and Nutrition Service, in July, and Frye said that Rowe indicated that when a la carte rules are released, there may be flexibility in implementation.

    NUTRITIONContinued from page 1

    Earlier this month, IDFA sent a follow-up letter to Rowe, emphasizing the growing consumption gap in recom-mended daily servings of nutrient-dense foods from basic food groups including dairy.

    “To help the growing consumption gap, a lot of work has been done to reformulate dairy foods to lower fat, sugar and calories,” IDFA says. “Milk, cheese/pizza and ice cream/frozen desserts products, which kids enjoy, have all been reformulated to meet new recommendations established by various volunteer organizations, states and localities.”

    IDFA adds that it looks forward to working together with USDA on educa-tion initiatives that encourage healthy eating.

    “We cannot afford to implement strat-egies that have the potential for a further decline in dairy and dairy product con-sumption by children,” IDFA says. CMN

    “We cannot afford to implement strategies that have the potential

    for a further decline in dairy and dairy

    product consumption by children.”

    INTERNATIONAL DAIRY FOODS ASSOCIATION

    Reprinted with permission from the Aug. 31, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Aug. 31, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

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  • NEWS/BUSINESSAugust 31, 2012 — CHEESE MARKET NEWS® 11

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    WASHINGTON — U.S. imports of cheese subject to licensing require-ments totaled 13.1 million pounds in July, up 6 percent from July 2011, according to the latest data from USDA’s Foreign Agricultural Service. January-July licensed cheese imports totaled 87.6 million pounds, down 2 percent from the same period last year. (The figures released by USDA are in kilograms; Cheese Market News has converted the data to pounds by multiplying by 2.2046.)

    Licensed imports of Swiss and Emmenthaler with eye formation in July totaled 3.4 million pounds, down less than 1 percent from a year earlier. January-July licensed imports in this category totaled 23.3 million pounds, down 10 percent from the same months last year.

    Imports of Italian-type cheeses subject to licensing requirements totaled 1.1 million pounds in July, up 7 percent from July 2011. January-July licensed imports of these cheeses to-taled 8.8 million pounds, up 38 percent from the same period last year.

    Licensed Edam and Gouda imports in July totaled 863,363 pounds, up 96 percent from July 2011. Year-to-date through July, licensed Edam and Gouda imports totaled 5.9 million pounds, up 22 percent from January-July 2011.

    July licensed Cheddar imports totaled 586,324 pounds, up 48 percent

    Licensed cheese imports for July total 13 million pounds, up 6 percent from July 2011from a year ago. January-July licensed Cheddar imports totaled 4.9 million pounds, up 15 percent from the same months in 2011.

    Licensed imports of blue mold cheeses in July totaled 462,752 pounds, down 20 percent from July 2011. January-July licensed imports of blue mold cheeses totaled 2.9 mil-lion pounds, down 17 percent from the same period last year.

    July licensed imports of processed Gruyere totaled 286,287 pounds, down 26 percent from July 2011. January-July licensed imports in this category totaled 2.5 million pounds, down 2 percent from January-July

    2011.Licensed imports of other cheese

    not-specifically-provided-for (NSPF) in July totaled 6.4 million pounds, up 5 percent from July of last year. January-July imports of other cheese NSPF totaled 39.4 million pounds, down 4 percent from the same period last year.

    July licensed butter imports to-taled 574,706 pounds, up 31 percent from a year earlier. January-July licensed butter imports totaled 3.7 million pounds, down 17 percent from the same 2011 period.

    Licensed imports of butter sub-stitutes totaled 1.5 million pounds in

    July, up from 74,075 pounds in July 2011. January-July licensed imports of butter substitutes totaled 7.6 mil-lion pounds, up from 385,329 pounds in January-July 2011.

    January-July imports of high-tier cheese and other dairy products to-taled 15.6 million pounds, up 6 percent from the January-July total in 2011. Leading high-tier imports was Italian-type cheeses with 8.1 million pounds through July, down 11 percent from the same period in 2011. The next-highest category was other cheese NSPF at 3.6 million pounds imported January-July, up 51 percent compared to the same months in 2011. CMN

    Agri-Mark named 2012 Business of Distinction by New York dairy groupCABOT, Vt. — Agri-Mark received the New York Dairy of Distinction 2012 Business of Distinction award at a ceremony Aug. 27 at the New York State Fair in Syracuse, N.Y.

    “Agri-Mark and its Cabot and Mc-Cadam dairy brands exemplify the very best in the dairy industry. This award is presented to Agri-Mark in recognition for all it has done to sup-port and promote the dairy industry throughout New York State, and across the nation. Many of the members of Dairy of Distinction’s New York chapter are members of the Agri-Mark dairy cooperative, and we are thrilled to recognize the good work and deeds they do in support of their communi-ties and the industry at large,” says Nancy Putman, secretary of Dairy of Distinction’s New York chapter.

    Neal Rea, chairman of Agri-Mark, says the company is honored to receive the recognition.

    “We take great pride in everything we do and this award is a fine testament to the hard work and dedication of all our farm-family owners and the employees of Cabot and McCadam,” he says. CMN

    Reprinted with permission from the Aug. 31, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

    http://www.filtrationeng.com/

  • 12 CHEESE MARKET NEWS® — August 31, 2012

    NEWS/BUSINESS

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    Stickney Hill, AMPI, Caves of Faribault, Land O’Lakes take best of class at Minn. State FairST. PAUL, Minn. — Cheeses from As-sociated Milk Producers Inc. (AMPI), Caves of Faribault and Stickney Hill Dairy, and cheese and butter from Land O’Lakes scored top in their classes at the 2012 Minnesota State Fair Dairy Products contest. Results of the contest were announced Aug. 19, and the fair runs Aug. 23-Sept. 3.

    The three top-scoring entries in each class are as follows:• Cheddar Block Cheese

    First: Al Merten, Land O’Lakes Inc., Kiel, Wis., 98.50.

    Second: Dale Schmidt, Land O’Lakes Inc., Kiel, Wis., 98.42.

    Third: Burt Bode, Dairy Farmers of America, Zumbrota, Minn., 98.00.• Cheddar Barrel Cheese

    First: Matt Quade, AMPI, Paynes-ville, Minn., 98.67.

    Second: Don Phillips, AMPI, Paynes-ville, Minn., 98.50.

    Third: Scott Kargas, First District, Litchfield, Minn., 98.33.• Miscellaneous Cheese

    First: Nick Williamette, Caves of Faribault, Faribault, Minn., Gorgonzola

    Cheese, 98.58.Second: Daniel and Janelle Lemke,

    Morning Star Farm, Cokato, Minn., Juusto Supreme, 98.50.

    Third: Spencer Slice, Land O’Lakes, Spencer, Wis., Yellow American, 98.42.• Artisan Cheese

    First: Eric Stenmark, Stickney Hill Dairy, Kimball, Minn., Cranberry Cin-namon Chevre, 99.00.

    Second: Tommy Linn, Stickney Hill Dairy, Kimball, Minn., Honey Chevre, 98.83.

    Third: Kyle Kramer, Stickney Hill

    Dairy, Kimball, Minn., Caciocavallo-Cow, 98.33. • Butter

    First: David Roach, Land O’Lakes Inc., Kent, Ohio, 99.19.

    Second (tie): Michael Carter, Land O’Lakes Inc., Tulare, Calif., 98.18.

    Second (tie): Aaron Portis, Land O’Lakes Inc., Kent, Ohio, 98.18.

    Third (tie): Art Carrillo, Land O’Lakes Inc., Tulare, Calif., 98.17.

    Third (tie): Ed Redman, Land O’Lakes Inc., Kent, Ohio, 98.17. CMN

    FDA issues draft guidance on use of food categories in food facility registrationsWASHINGTON — FDA recently issued a draft guidance for the industry on the use of food categories in food facility registrations.

    FDA says it believes that it is necessary for a food facility to submit to FDA a registration containing the general food category and any other food categories if applicable for a quick, accurate and focused response to a food-safety related issue, actual or potential bioterrorist incident, or other food-related emergencies or incidents. The information about a facility’s food categories is a key element to allow for rapid communications between FDA and facilities directly impacted by any of these poss