analysts anticipate 2016 will be challenging for dairy marketseptember 2015, new zealand increased...

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© 2015 CHEESE MARKET NEWS ® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) Emmi buys Redwood Hill to expand goat’s milk products LUCERNE, Switzerland — In an effort to achieve international growth in goat’s milk products, sustainably manufactured foods and lactose-free dairy products, Emmi Group has announced the acquisition of Redwood Hill Farm & Creamery, a company based in Sebastopol, California. Redwood Hill’s owner and CEO, Jennifer Bice, says she is con- fident Emmi Group is the right choice for the company’s future. “I feel completely aligned with Emmi’s very high standards for quality, their strong emphasis on employees and their com- mitment to sustainability,” she says. “Most importantly, they have encouraged us to maintain the way we do business.” Bice, along with her existing management team, will continue to manage Redwood Hill. The company also will retain an inde- pendent market presence. Cheese production climbs 1.5 percent over prior year WASHINGTON — Total U.S. cheese production in October, excluding cottage cheese, reached 990.9 million pounds, 1.5 percent above October 2014’s 976.4 million pounds, according to data released Thursday by USDA’s National Agricultural Statistics Service (NASS). (All figures are rounded. Please see CMN’s Dairy Production chart on page 11.) October cheese production also was up 3.8 percent from September 2015’s 954.6 million pounds, according to NASS. This is a 0.5-percent increase when adjusted to an average daily basis. Italian-type cheese production totaled 420.5 million pounds in October,up 2.2 percent from the previous October’s 411.7 million pounds. Production of Mozzarella, the nation’s most-produced cheese and the largest component of Italian-type production, totaled 324.4 million pounds, a 1.1-percent increase versus October 2014. American-type cheese production totaled 385.7 million pounds in October, a 0.7-percent decline from October 2014’s 388.4 million pounds. Production of Cheddar, the most-produced American-type cheese, totaled 274.5 million pounds in October, up 0.6 percent from a year earlier. Wisconsin led the nation’s cheese production with 263.9 million pounds in October, a 3.6-percent gain versus production a year earlier. California followed with 198.3 million pounds, a decline of 5.0 percent versus October 2014. The next four cheese-producing states in October were Idaho with 79.2 million pounds, a 5.3-percent increase over its production a year earlier; New York with 74.9 million pounds, up 3.0 percent; New Mexico with 60.1 million pounds, up 1.4 percent; and Minnesota with 55.4 mil- lion pounds, down 1.9 percent. NASS reports U.S. butter production in October totaled 147.5 million pounds, down 1.7 percent from October 2014’s 150.2 million pounds. October 2015 butter production was up 9.4 percent from September Volume 35 December 4, 2015 Number 46 By Alyssa Mitchell MADISON, Wis. — As the end of 2015 — a year of high dairy product stocks and milk sup- plies, which pressured global prices lower — nears, analysts anticipate more uncertainty in 2016 as key importers continue to pull back and milk produc- tion has yet to significantly slow down. “It’s no secret that it’s been a tough year for the dairy market,” says Alan Levitt, vice president of communications and market analysis for the U.S. Dairy Export Council (USDEC). In a USDEC-sponsored webinar Tuesday, “USDEC’s Global Dairy Outlook: 2016,” hosted by Dairy Foods maga- Analysts anticipate 2016 will be challenging for dairy market zine, Levitt and Marc Beck, executive vice president of strategy and insights, USDEC, shared their perspective on the past year for the global dairy market as well as their expecta- tions for the year ahead. Levitt notes that as the top five global milk suppliers — the European Union-28, United States, New Zealand, Austra- lia and Argentina — ramped up production in 2015, up 3.6 million metric tons in October 2015 versus October 2014, two key importers simultane- ously pulled back. China, a huge importer in 2014, slowed its imports down by 3.9 million metric tons in October versus the previous year. Meanwhile, the Russian embargo resulted in an import decline of 2.3 mil- lion metric tons in October 2015 versus October 2014. “From the summer of 2013, China imports took off sharply,” Levitt says. “Now we know that was a bubble, but at the time, it shorted the market.” Global milk production continues to grow, seemingly oblivious to the China drop-off, he adds. That coupled with the timing of the Russian embargo on dairy imports resulted in a net supply increase of 9.8 mil- lion metric tons (milk equiva- lent) in October 2015. Levitt says he anticipates this supply/import gap to re- main large in 2016. Global milk production is not pulling back enough, with most of the gains coming from the European Union (EU) following the end of quotas, he says. A loss of markets resulted in shifts in product mix, Levitt notes. For the year ending September 2015, New Zealand increased sales of whole milk powder (WMP) to the Middle East/North Africa (MENA) region and Southeast Asia, and cheese exports to those regions as well as Mexico were up 15 percent over the previous year. Meanwhile, EU-28 exports of cheese to Mexico, South Korea, Japan and MENA were up 25 percent in September over last year, while butterfat exports to MENA and even China increased 27 percent, according to USDEC. At the same time, U.S. cheese, butter and powder stocks are about 100,000 metric tons higher than a “typical” year, Levitt says. In 2016, Levitt anticipates the United States will con- tinue steady growth in milk production in the Midwest and Northeast, where the cost of production is low enough. EU post-quota growth, particularly in Ireland and the Netherlands, will continue, with a processing focus on powders. Meanwhile, New Zealand still is a low-cost producer and is growth-oriented, although some threats of unfavorable weather from El Niño may play out, while Australia is riding two years of growth, with weather also a threat. Beck notes that end-user demand for dairy products globally remains sluggish. “There is no indication that lower prices are stimulating demand; rather, buyers are ‘dollar-cost-averaging’ and feeding the pipeline,” he says. Many nations’ engine for economic growth is not strong enough, and the stronger U.S. dollar raises the costs of im- ports from all sources, Beck says. Meanwhile, China powder demand is expected to stay flat in the short term, though fresh dairy (UHT milk) and other dairy products are doing well. Beck notes it will take time to clear global dairy inventories. EU commercial and government stocks have grown over the past year and Swiss Gruyere wins 2015 World Cheese Awards Turn to OUTLOOK, page 11 a Turn to EMMI, page 10 a BIRMINGHAM, England Le Gruyère AOP Premier Cru, made by Cremo SA von Mühlenen of Switzerland, claimed the top prize at this year’s World Cheese Awards, hosted here Nov. 26 by the Guild of Fine Food. The cheese, which beat out 2,727 other entries for the championship title, now has won the World Cheese Awards a record four times. Turn to AWARDS, page 6 a Turn to NASS, page 11 a Scan this code for breaking news and the latest markets! Guest column: A dangerous new raw milk bill.’ For details, see page 4. Senators, industry urge COOL resolution by year end; WTO decision expected soon. For details, see page 5. Former U.S. ag secretaries urge TPP passage. For details, see page 10. Peak Rock Capital affiliate buys Berner Food. For details, see page 11. INSIDE

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Page 1: Analysts anticipate 2016 will be challenging for dairy marketSeptember 2015, New Zealand increased sales of whole milk powder (WMP) to the Middle East/North Africa (MENA) region and

© 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected])

Emmi buys Redwood Hill to expand goat’s milk productsLUCERNE, Switzerland — In an effort to achieve international growth in goat’s milk products, sustainably manufactured foods and lactose-free dairy products, Emmi Group has announced the acquisition of Redwood Hill Farm & Creamery, a company based in Sebastopol, California.

Redwood Hill’s owner and CEO, Jennifer Bice, says she is con-fi dent Emmi Group is the right choice for the company’s future.

“I feel completely aligned with Emmi’s very high standards for quality, their strong emphasis on employees and their com-mitment to sustainability,” she says. “Most importantly, they have encouraged us to maintain the way we do business.”

Bice, along with her existing management team, will continue to manage Redwood Hill. The company also will retain an inde-pendent market presence.

Cheese production climbs 1.5 percent over prior yearWASHINGTON — Total U.S. cheese production in October, excluding cottage cheese, reached 990.9 million pounds, 1.5 percent above October 2014’s 976.4 million pounds, according to data released Thursday by USDA’s National Agricultural Statistics Service (NASS). (All fi gures are rounded. Please see CMN’s Dairy Production chart on page 11.)

October cheese production also was up 3.8 percent from September 2015’s 954.6 million pounds, according to NASS. This is a 0.5-percent increase when adjusted to an average daily basis.

Italian-type cheese production totaled 420.5 million pounds in October,up 2.2 percent from the previous October’s 411.7 million pounds. Production of Mozzarella, the nation’s most-produced cheese and the largest component of Italian-type production, totaled 324.4 million pounds, a 1.1-percent increase versus October 2014.

American-type cheese production totaled 385.7 million pounds in October, a 0.7-percent decline from October 2014’s 388.4 million pounds. Production of Cheddar, the most-produced American-type cheese, totaled 274.5 million pounds in October, up 0.6 percent from a year earlier.

Wisconsin led the nation’s cheese production with 263.9 million pounds in October, a 3.6-percent gain versus production a year earlier. California followed with 198.3 million pounds, a decline of 5.0 percent versus October 2014.

The next four cheese-producing states in October were Idaho with 79.2 million pounds, a 5.3-percent increase over its production a year earlier; New York with 74.9 million pounds, up 3.0 percent; New Mexico with 60.1 million pounds, up 1.4 percent; and Minnesota with 55.4 mil-lion pounds, down 1.9 percent.

NASS reports U.S. butter production in October totaled 147.5 million pounds, down 1.7 percent from October 2014’s 150.2 million pounds.

October 2015 butter production was up 9.4 percent from September

Volume 35 December 4, 2015 Number 46

By Alyssa Mitchell

MADISON, Wis. — As the end of 2015 — a year of high dairy product stocks and milk sup-plies, which pressured global prices lower — nears, analysts anticipate more uncertainty in 2016 as key importers continue to pull back and milk produc-tion has yet to signifi cantly slow down.

“It’s no secret that it’s been a tough year for the dairy market,” says Alan Levitt, vice president of communications and market analysis for the U.S. Dairy Export Council (USDEC).

In a USDEC-sponsored webinar Tuesday, “USDEC’s Global Dairy Outlook: 2016,” hosted by Dairy Foods maga-

Analysts anticipate 2016 will be challenging for dairy market

zine, Levitt and Marc Beck, executive vice president of strategy and insights, USDEC, shared their perspective on the past year for the global dairy market as well as their expecta-tions for the year ahead.

Levitt notes that as the top fi ve global milk suppliers — the European Union-28, United States, New Zealand, Austra-lia and Argentina — ramped up production in 2015, up 3.6 million metric tons in October 2015 versus October 2014, two key importers simultane-ously pulled back. China, a huge importer in 2014, slowed its imports down by 3.9 million metric tons in October versus the previous year. Meanwhile, the Russian embargo resulted in an import decline of 2.3 mil-lion metric tons in October 2015 versus October 2014.

“From the summer of 2013, China imports took off sharply,” Levitt says. “Now we know that was a bubble, but at the time, it shorted the market.”

Global milk production continues to grow, seemingly oblivious to the China drop-off, he adds. That coupled with the timing of the Russian embargo on dairy imports resulted in a net supply increase of 9.8 mil-lion metric tons (milk equiva-

lent) in October 2015.Levitt says he anticipates

this supply/import gap to re-main large in 2016.

Global milk production is not pulling back enough, with most of the gains coming from the European Union (EU) following the end of quotas, he says.

A loss of markets resulted in shifts in product mix, Levitt notes. For the year ending September 2015, New Zealand increased sales of whole milk powder (WMP) to the Middle East/North Africa (MENA) region and Southeast Asia, and cheese exports to those regions as well as Mexico were up 15 percent over the previous year.

Meanwhile, EU-28 exports of cheese to Mexico, South Korea, Japan and MENA were up 25 percent in September over last year, while butterfat exports to MENA and even China increased 27 percent, according to USDEC.

At the same time, U.S. cheese, butter and powder stocks are about 100,000 metric tons higher than a “typical” year, Levitt says.

In 2016, Levitt anticipates the United States will con-tinue steady growth in milk production in the Midwest and

Northeast, where the cost of production is low enough. EU post-quota growth, particularly in Ireland and the Netherlands, will continue, with a processing focus on powders.

Meanwhile, New Zealand still is a low-cost producer and is growth-oriented, although some threats of unfavorable weather from El Niño may play out, while Australia is riding two years of growth, with weather also a threat.

Beck notes that end-user demand for dairy products globally remains sluggish.

“There is no indication that lower prices are stimulating demand; rather, buyers are ‘dollar-cost-averaging’ and feeding the pipeline,” he says.

Many nations’ engine for economic growth is not strong enough, and the stronger U.S. dollar raises the costs of im-ports from all sources, Beck says. Meanwhile, China powder demand is expected to stay fl at in the short term, though fresh dairy (UHT milk) and other dairy products are doing well.

Beck notes it will take time to clear global dairy inventories. EU commercial and government stocks have grown over the past year and

Swiss Gruyere wins 2015 World Cheese Awards

Turn to OUTLOOK, page 11 a

Turn to EMMI, page 10 a

BIRMINGHAM, England — Le Gruyère AOP Premier Cru, made by Cremo SA von Mühlenen of Switzerland, claimed the top prize at this year’s World Cheese Awards, hosted here Nov. 26 by the Guild of Fine Food. The cheese, which beat out 2,727 other entries for the championship title, now has won the World Cheese Awards a record four times.

Turn to AWARDS, page 6 aTurn to NASS, page 11 a

Scan this code

for breaking

news and the

latest markets!

✦ Guest column: ‘A dangerous new raw milk bill.’ For details, see page 4.

✦ Senators, industry urge COOL resolution by year end; WTO decision expected soon. For details, see page 5.

✦ Former U.S. ag secretaries urge TPP passage. For details, see page 10.

✦ Peak Rock Capital affi liate buys Berner Food. For details, see page 11.

INSIDE

Page 2: Analysts anticipate 2016 will be challenging for dairy marketSeptember 2015, New Zealand increased sales of whole milk powder (WMP) to the Middle East/North Africa (MENA) region and

© 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected])

MARKET INDICATORS

2 CHEESE MARKET NEWS® — December 4, 2015

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

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

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Susan Quarne, Publisher (PH 608/831-6002; FAX 608/831-1004) e-mail: [email protected] Kate Sander, Editorial Director (PH 509/962-4026; FAX 509/962-4027) e-mail: [email protected] Mitchell, Senior Editor (PH 608/288-9090; FAX 608/288-9093) e-mail: [email protected] Archwamety, News/Web Editor (PH 608/288-9090; FAX 608/288-9093) e-mail: [email protected] Dequaine, Assistant Editor (PH 608/288-9090; FAX 608/288-9093) e-mail: [email protected]

REGULAR CONTRIBUTORSJohn Umhoefer, FCStone, International Dairy Foods Association, National Milk Producers Federation, U.S. Dairy Export Council, Eric Meyer, Rice Dairy

ADVERTISING/SUBSCRIPTION ORDERS & INFOContact: Susan Quarne - PublisherP.O. Box 628254, Middleton, WI 53562PHONE 608/831-6002 • FAX 608/288-9093

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

YEAR2009201020112012201320142015

JAN10.7814.5013.4817.0518.1421.1516.18

FEB 9.31 14.2817.0016.0617.2523.3515.46

MAR10.4412.7819.4015.7216.9323.3315.56

APR10.7812.9216.8715.7217.5924.3115.81

MAY 9.8413.3816.5215.2318.5222.5716.19

JUN 9.9713.6219.1115.6318.0221.3616.72

JUL 9.9713.7421.3916.6817.3821.6016.33

AUG11.2015.1821.6717.7317.9122.2516.27

SEP12.1116.2619.0719.0018.1424.6015.82

OCT12.8216.9418.0321.02 18.22 23.82 15.46

NOV14.0815.4419.0720.8318.8321.9415.30

DEC14.9813.8318.7718.6618.9517.82

Dry Products* December 4, 2015

DRY BUTTERMILK(FOB)Central & East: $.8500-$.9500.(FOB) West: $.8500-$.9500; mostly $.8700-$.9300.

EDIBLE LACTOSE(FOB)Central and West: $.1400-$.2650(+1/2); mostly $.1600-$.2150(+1/2).

NONFAT DRY MILKCentral & East: low/medium heat $.8200(+1 3/4)-$.9400; mostly $.8500(+1)-$.8800. high heat $.9600(+1)-$1.1800.West: low/medium heat $.6825(+3/4)-$.8650(+2); mostly $.7300(+3/4)-$.8175. high heat $.9100(+3)-$1.1300(-1).Calif. manufacturing plants: extra grade/grade A weighted ave. $.7703(-.0656) based on 4,870,536 lbs.

WHOLE MILK POWDER (National): $1.2800(+3)-$1.3500.

WHEY POWDERCentral: nonhygroscopic $.1800(+2 1/4)-$.2800; mostly $.1800-$.2425.West: nonhygroscopic $.2100(+1)-$.3100; mostly $.2200(+1)-$.2550.(FOB) Northeast: extra grade/grade A $.2200(+4)-$.2800.

ANIMAL FEED WHEY (Central): Whey spray milk replacer $.1500(+3/4)-$.1850.

WHEY PROTEIN CONCENTRATE (34 percent): $.4550(-2)-$.6500(+1); mostly $.4900-$.5700.

CASEIN: Rennet $2.6500-$3.3500; Acid $2.7000-$3.5000.

*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.*Total Contracts Traded/Open Interest reflect additional months not included in this chart.

NOV15DEC15JAN16FEB16MAR16APR16MAY16JUN16JUL16AUG16SEP16OCT16NOV16DEC16JAN17FEB17MAR17

CHEESE FUTURES* for the week ending December 3, 2015 (Listings for each day by month, settling price and open interest)

Fri., Nov. 27 Mon., Nov. 30 Tues., Dec. 1 Wed., Dec. 2 Thurs., Dec. 3

1.6561.5911.5821.6151.6501.6641.6841.7111.7351.7501.7591.7461.7351.7311.7411.7501.750

3,6223,7182,6552,4872,5461,9271,8661,6091,2131,0461,0031,0701,1811,080

614631

0/27,161

1.6501.5901.5821.613 1.6421.6691.6881.7151.7401.7621.7681.7621.7381.7411.7411.7501.750

3,6243,7402,7582,6742,6221,9541,8761,6251,2111,0521,0041,0821,1901,090

614631

512/27,664

1.6501.5911.5861.6181.6491.6701.6881.7151.7421.7621.7681.7621.7381.7411.7411.7501.750

3,6243,7232,7052,5732,5761,9351,8691,6081,2121,0461,0031,0771,1881,087

614631

465/27,388

1.6501.5861.5761.601 1.6351.6641.6901.7151.7431.7601.7691.7631.7431.7421.7411.7501.750

4,0613,7332,8632,7802,6821,9861,8941,6631,2241,0661,0181,0961,2021,099

614631

924/28,529

----1.5841.5731.5991.632 1.6621.6861.7121.7431.7581.7671.7621.7471.7451.7411.7501.750

----3,8012,8932,8022,7402,0161,9101,6801,2371,0761,0301,1061,2161,112

614631

592/24,825

Total Contracts Traded/Open Interest

NOV15DEC15JAN16FEB16MAR16APR16MAY16JUN16JUL16AUG16SEP16OCT16NOV16OCT16

DRY WHEY FUTURES* for the week ended December 3, 2015 (Listings for each day by month, settling price and open interest)

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

Fri., Nov. 27 Mon., Nov. 30 Tues., Dec. 1 Wed., Dec. 2 Thurs., Dec. 323.0023.4824.8025.7526.2526.4327.5028.7828.8530.0032.2530.9031.8333.05

547566393350371290268244173187194189182175

54/4,263

22.9022.7824.5025.2526.0026.4827.8028.5829.2331.0532.2530.9032.0033.05

547563376335358286266246173187191189181174

0/4,197

23.0023.4824.0024.6825.7526.2827.5028.0028.8530.0032.2530.9031.8333.05

547566386340364286268244173187191189182175

78/4,228

23.4123.4825.9526.3327.0027.8329.0330.2330.0031.0332.2531.5032.2533.05

585566402355376297269246173187194189182175

158/4,330

----24.6026.2026.3527.5028.3029.7530.6030.9332.0032.7532.2532.5033.05

----571403361375297279246173191194189182175

58/3,770

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

ButterCheese

7,90995,221

-206+545

5,64294,184

-4,213-6,495

+2,267+1,037

-35-6

Weekly Cold Storage Holdings November 30, 2015 On hand Week Change since Nov. 1 Last Year Monday Change Pounds Percent Pounds Change

Monday Tuesday Wednesday Thursday Friday

Chicago Mercantile Exchange

Nov. 30 Dec. 1 Dec. 2 Dec. 3 Dec. 4

Weekly average (Nov. 30-Dec. 4): Barrels: $1.5095(-.0080); 40-lb. Blocks: $1.5445(-.0305).Weekly ave. one year ago (Dec. 1-5, 2014): Barrels: $1.5830; 40-lb. Blocks: $1.6540.

Cheese BarrelsPriceChange

Cheese 40-lb. BlocksPriceChange

Grade A NDMPriceChange

Weekly average (Nov. 30-Dec. 4): Grade A: $0.7820(+.0512).

Grade AA ButterPriceChange

Class II Cream (Major Northeast Cities): $3.7120(+.1923)–$3.9150(-.0086).

Weekly average (Nov. 30-Dec. 4): Grade AA: $2.9025(+.0025).

$2.9050 +1/2

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

Cash prices for the week ended December 4, 2015

$1.5150 -2 1/2

$1.5600 -3/4

$0.7800 +4 1/4

$2.9000 NC

$1.5125 +1 3/4

$1.5525+2 3/4

$2.9050 NC

$0.8050 +1/2

$0.7375 +3/4

$2.9025 -1/4

$0.7875 -1 3/4

$2.9000 NC

$1.4850 -2 3/4

$1.5175-3 1/2

$1.4950 -2

$1.5250-3 1/2

$0.8000 +2

$1.5400 -1

$1.5675 -1 1/4

Page 3: Analysts anticipate 2016 will be challenging for dairy marketSeptember 2015, New Zealand increased sales of whole milk powder (WMP) to the Middle East/North Africa (MENA) region and

© 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected])

December 4, 2015 — 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

Conventional cheese ads down 8 percentWASHINGTON — Ads for national conventional cheese decreased 8 per-cent last week from the prior week, says USDA’s Agricultural Marketing Service (AMS) in its latest weekly National Dairy Retail Report released Nov. 25.

AMS says national conventional varieties of natural 8-ounce cheese blocks last week had a weighted average advertised price of $2.33, up from $2.28 one week earlier but down from $2.55 one year earlier.

Natural varieties of 1-pound cheese blocks last week had a weighted aver-age advertised price of $3.64, down from $3.84 one week earlier and $4.36 one year earlier, AMS says, while 2-pound cheese blocks had a weighted

average advertised price of $8.04, up from $6.39 one week earlier and $7.60 one year ago.

AMS says natural varieties of 8-ounce cheese shreds last week had a weighted average advertised price of $2.30, up from $2.29 one week earlier but down from $2.50 one year earlier, while 1-pound cheese shreds had a weighted average advertised price of $3.99, unchanged from a week earlier and up from $3.87 one year ago.

Meanwhile, national conventional butter in 1-pound packs last week had a weighted average advertised price of $2.84, up from $2.82 one year earlier but down from $3.28 one year earlier, AMS says. 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 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: 11/14/15

$1.650210,812,263

$1.7261$1.6437

9,769,83434.89

*$2.8223 *3,316,443

$0.8215*16,706,845

$0.22866,353,213

$1.6639 *12,626,880

$1.6943$1.6154

9,903,31134.97

*$2.8886 *3,390,055

*$0.8492*17,915,359

$0.2316*7,496,381

11/21/15 11/7/15

$1.670110,523,283

$1.6860$1.6115

9,159,34435.13

$2.6718 4,383,463

$0.875214,254,952

$0.23525,690,443

$1.6537 8,981,566

$1.6332$1.5577

8,077,04334.99

$2.8867 2,155,617

$0.788610,207,170

$0.24683,736,045

11/28/15

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 PricesNovember 2015

$ 15.30/cwt.$ 4.31/cwt.

$ 16.89/cwt.$ 5.96/cwt.

$ 18.26/cwt.$ 3.1900/lb.

$ 3.1830/lb.$ 0.6627/lb.$ 1.3205/lb.$ 0.0361/lb.$ 0.00083/1,000 scc

$ 2.7999/lb.$ 0.8372/lb.$ 1.6503/lb.$ 0.2341/lb.

October 2015

$ 15.46/cwt.$ 5.47/cwt.

$ 16.43/cwt.$ 6.48/cwt.

$ 16.44/cwt.$ 2.9157/lb.

$ 2.9087/lb.$ 0.7200/lb.$ 1.7019/lb.$ 0.0328/lb.$ 0.00084/1,000 scc

$ 2.5734/lb.$ 0.8951/lb.$ 1.6790/lb.$ 0.2309/lb.

Class 4aClass 4b

Butterfat$ 3.1316/lb.$ 3.1316/lb.

SNF$ 0.6446/lb.$ 0.3986/lb.

Equivalent $ 16.57/cwt.$ 14.43/cwt.

California Minimum PricesReleased December 2, 2015

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*

NOV15DEC15JAN16FEB16MAR16APR16MAY16JUN16JUL16

NOV15DEC15JAN16FEB16MAR16APR16MAY16JUN16JUL16AUG16

Total Contracts Traded/Open Interest

Fri., Nov. 27 Mon., Nov. 30 Tues., Dec. 1 Wed., Dec. 2 Thurs., Dec. 3

Total Contracts Traded/Open Interest

NOV15DEC15JAN16FEB16MAR16APR16MAY16JUN16JUL16AUG16SEP16OCT16NOV16DEC16JAN17

Class III Milk*

Total Contracts Traded/Open Interest

Class IV Milk*

NOV15DEC15JAN16FEB16MAR16APR16MAY16JUN16JUL16AUG16SEP16

CME FUTURES for the week ended December 3, 2015

Fri., Nov. 27 Mon., Nov. 30 Tues., Dec. 1 Wed., Dec. 2 Thurs., Dec. 3

Fri., Nov. 27 Mon., Nov. 30 Tues., Dec. 1 Wed., Dec. 2 Thurs., Dec. 3

Cash-Settled Butter*

4,1594,7443,6462,8012,5732,0561,7661,6011,3441,2431,2541,179 1,0491,042

51

15.2914.6314.3814.6915.0415.3015.6115.8716.1716.4216.5716.5416.3516.3816.20

16.9015.8414.3214.5014.8515.1115.3715.8616.3816.5416.48

364328254220207158181154178118

79

84.0081.5890.5397.00

101.18105.50109.00113.40118.00

787988923827877454458408269

280.50260.08210.00199.00198.75194.73193.80196.50 198.55199.00

1,212936478496413359292310210182

868/30,668

48/2,484

387/7,222

119/5,303

4,2074,9453,4012,7142,5132,0441,7511,5951,3371,2391,2481,1721,0461,031

44

15.3314.5814.3514.6915.0615.2215.4715.8016.0716.2716.4416.2916.2216.1616.20

0/30,400

16.8015.3813.9214.0114.3614.7415.0115.4815.9716.3116.43

365324219198192145169145169105

74

0/2,301

82.7579.5086.0091.7096.05

101.25104.50109.00114.00

805973895787855451459405268

0/7,109

280.50253.00202.03192.05192.98192.00192.75195.25197.75198.00

1,213926458471385356283308212182

0/5,190

Fri., Nov. 27 Mon., Nov. 30 Tues., Dec. 1 Wed., Dec. 2 Thurs., Dec. 34,1854,8813,4792,7632,5472,0461,7661,6011,3421,2401,2541,1761,0491,040

44

15.2914.6214.4014.6915.0615.2815.5515.8516.1716.4016.5716.4516.3016.2616.20

878/30,573

16.9015.6514.1014.1514.4414.7415.0115.4816.0216.3116.43

364328236217205158181151174114

79

166/2,437

84.0580.2887.5393.2098.00

103.00105.00109.40114.20

787968904804864451460404268

248/7,124

280.50257.50205.00196.48193.78194.70192.75195.03 197.75198.00

1,212932475487404360285310212182

125/5,262

5,1494,6923,7602,8912,5702,0761,8071,6141,3481,2481,2581,1871,0591,053

51

15.3014.6414.3614.6014.9915.2915.5915.9016.1616.4216.5816.5416.3516.3416.24

966/ 31,923

16.8916.2514.3214.4214.8015.1115.3215.8616.3816.5416.48

423332253222202158181154178118

79

194/ 2,543

83.7281.2588.5094.95

100.00104.20107.75112.50117.03

1,0451,002

949859903470469410267

389/7,605

279.99270.98212.00199.25198.75196.25196.00196.53 200.00199.03

1,288943491503419359302310214187

109/ 5,435

----4,3543,7992,9372,6322,0851,8271,6231,3491,2591,2601,1871,0581,054

69

----14.6714.3714.6014.9815.3315.6415.9716.2316.4816.5916.5416.3916.4016.30

1,346/26,703

----270.25210.00197.33198.73196.25196.23197.03197.78 199.03

----950518531442363309314219191

193/4,265

----79.6588.1094.7599.80

104.23107.00111.50116.75

----1,005

952864901474466419271

287/6,591

----16.2414.3314.3314.7815.1115.3215.8616.3816.5416.51

----332275250198158181154178118

79

96/2,166

Page 4: Analysts anticipate 2016 will be challenging for dairy marketSeptember 2015, New Zealand increased sales of whole milk powder (WMP) to the Middle East/North Africa (MENA) region and

© 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected])

4 CHEESE MARKET NEWS® — December 4, 2015

John Umhoefer is executive director of the Wisconsin Cheese Makers Association. He contributes this column monthly for Cheese Market News®.

Perspective:WCMA

A dangerous new raw milk bill

WCMA UPDATE

For the fourth time in seven years, a Wisconsin legislator has drafted a bill to legalize the sale of unpasteurized milk to consumers at dairy farms. Exempting these farms from any licensing or prod-uct testing, this bill is more dangerous than the three failed bills before it.

Raw milk advocates in Wisconsin have been frustrated by a veto by Gov. Jim Doyle in 2010 and current Gov. Scott Walker’s expressed concern for the welfare and safety of Wisconsin children and families when discussing his misgivings with raw milk legislation.

A new bill, introduced in November by State Rep. David Murphy, a Republi-can serving Outagamie and Winnebago counties, refl ects the frustration of the raw milk pushers. The bill strips all oversight of these farms, removing even the simple requirement for a $30 dairy farm license from a farm that sells only raw milk or raw milk dairy products to consumers.

Raw milk advocates want their dairy producers off the radar, unlicensed and

uncoupled from all milk testing, sanita-tion and quality standards.

“The standards applicable to the production of milk and fl uid milk prod-ucts under this chapter do not apply to unpasteurized milk or unpasteurized milk products” from these raw-milk-only farms, the bill states.

Yet it’s diffi cult to hide from the facts. During the years 1998-2011 a total of 148 outbreaks associated with unpasteurized milk consumption were reported to the U.S. Centers for Disease Control & Prevention (CDC). The ma-jority of illnesses associated with these outbreaks were caused by Shiga-toxin producing E. coli, Campylobacter or Listeria. Notably, children are particu-larly affected by illness associated with consuming unpasteurized milk; among the 148 outbreaks reported to the CDC, 82 percent of outbreak reports with patient age data included illness among children or adolescents.

Wisconsin experienced two high-profi le raw milk incidents in recent

years. In September 2014, 38 people including 33 students were sickened by the pathogenic bacteria Campylobacter jejuni during a high school football team dinner featuring raw milk in Durand, Wisconsin. Ten were hospitalized or sought care in an emergency center.

In June 2011, 16 fourth graders in Racine County, Wisconsin, fell ill due to consumption of raw milk infected with Campylobacter jejuni bacteria. A parent brought raw milk from a local farm and the matching bacterial strain was found in milk produced at the farm. One child was hospitalized.

Pasteurization kills E. coli, Campy-lobacter and Listeria.

Previous Wisconsin raw milk bills conceded that licensing these farms and testing the raw milk for dangerous pathogens, antibiotic drug residues, somatic cells and more on a regular basis was the least farmers can do for their customers.

The new Murphy bill requires noth-ing: No labeling, no standards for the cleanliness of the farm, no inspection of the milk bottling equipment, no milk quality tests, no temperature require-ments for the milk sold to consumers, no pathogen testing. Nothing.

Raw milk is promoted like modern snake oil, touted as more nutritional

than pasteurized milk, a cure for aller-gies and lactose intolerance and full of microfl ora and antimicrobial systems. Yet, in a recent peer-reviewed paper in Nutrition Today, Dr. John Lucey with the Center for Dairy Research at the University of Wisconsin concluded, “Claims related to improved nutrition, prevention of lactose intolerance, or provision of ‘good’ bacteria from the consumption of raw milk have no sci-entifi c basis and are myths.”

A bill that allows dairy farms to provide untested, unmonitored, perishable foods to consumers runs counter to every improvement in food safety in the last 80 years. Consumer outrage over contaminated products in the meat, vegetable and even dairy industry have produced the U.S. Food Safety Modernization Act, a growing web of third-party food plant audits and worldwide adoption of sanitary and phytosanitary standards.

The Murphy bill is the most dan-gerous raw milk bill yet proposed in Wisconsin. Its callous disregard for the safety of consumers is disturbing. CMN

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

For more information please visit www.gotocfr.com

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NEWS/BUSINESS

Dairy groups praise inclusion of milk truck amendment in transportation billWASHINGTON — The House and Sen-ate this week approved a $305 billion, 5-year transportation bill that now awaits President’s Obama’s signature.

The International Dairy Foods

Association (IDFA) and National Milk Producers Federation (NMPF) praised Congress for its decision to include a dairy-specifi c amendment in the transportation bill that would benefi t producers, processors and consumers.

The bipartisan amendment, spon-sored by Reps. Richard Hanna, R-N.Y., and Elizabeth Esty, D-Conn., gives states the option to issue permits allowing milk haulers to increase their truck weights beyond interstate highway system lim-its. This will allow milk trucks in some states to carry more product without being forced to offl oad portions of it at other state borders.

Connie Tipton, president and CEO, IDFA, notes that under the amend-ment, fewer vehicles will be needed to transport milk, cutting transportation costs and easing the burden on farmers, consumers and commuters.

Jim Mulhern, president and CEO, NMPF, says the amendment recognizes the specifi c challenges in transporting milk.

“It’s great to see bipartisan support for something so crucial to our dairy producers,” he says.

The bill now awaits Obama’s signature. He is expected to sign it today before authority for the government to process aid pay-ments to states is set to expire. CMN

Page 5: Analysts anticipate 2016 will be challenging for dairy marketSeptember 2015, New Zealand increased sales of whole milk powder (WMP) to the Middle East/North Africa (MENA) region and

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NEWS/BUSINESS December 4, 2015 — CHEESE MARKET NEWS® 5

For more information please visit http://creamery.wsu.edu/about-us/upcoming-events

REGISTRATION NOW OPEN FOR 2016 Short Courses

Cheesemaking 30th Advanced, Pullman, WA; March 1-3, 2016

(Designed for experienced cheesemakers, supervisors, management, QC and marketing personnel; includes hands-on cheesemaking.)

Pasteurization Workshop, Pullman, WA; April 6-7, 2016

(Designed for plant operators, maintenance, QC, management and suppliers; covers vat and basic HTST systems.)

For more information, contact Cathy Blood [email protected]; Phone (509) 335-2845; Fax (509) 335-7525

or link to our website: http://creamery.wsu.edu/about-us/upcoming-events

Senators, industry urge COOL resolution by end of year; WTO decision expected next weekWASHINGTON — Five U.S. senators sent a letter to Senate leadership this week to convey their concerns about the potential for retaliatory tariffs on U.S. exports to Canada and Mexico if current U.S. country-of-origin label-ing (COOL) requirements are left unchanged.

The senators — Barbara Boxer, D-Calif., Joe Donnelly, D-Ind., Dianne Feinstein, D-Calif., Tim Kaine, D-Va., and Mark Warner, D-Va. — call on Sen-ate Majority Leader Mitch McConnell, R-Ky., and Minority Leader Harry Reid, D-Nev., to ensure the Senate passes legislation to resolve the trade dispute before the end of 2015.

“Canada and Mexico have applied for approximately $3 billion in annual retaliatory tariffs that would target a substantial number of our states’ exports,” the letter says. “It is our understanding that the World Trade Organization (WTO) will authorize

Canada and Mexico to apply these damaging tariffs beginning in De-cember of this year. Retaliatory tariffs could decimate our states’ market access in these countries for years to come.”

In addition, dairy producers and exporters this week also urged Congress to eliminate the threat of damaging new tariffs on dairy exports to Canada and Mexico by solving the trade dispute over COOL.

In a letter sent Thursday to House and Senate leaders, the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (US-DEC) express increasing alarm that new tariffs targeted at U.S. dairy ex-ports are potentially only weeks away.

“It is critical that Congress resolve this challenge in the end-of-year spending legislation in a way that Canada and Mexico agree suffi ciently addresses their concerns in order

to remove the threat of retaliation tariffs,” the letter says.

Congress has been discussing legislation to solve the COOL issue all year. The year-end omnibus spending bill, needed to fund the federal gov-ernment after Dec. 11, will be one of the last large measures considered by the House and Senate before they adjourn for the year.

WTO ruled against the COOL rule in June. Canada and Mexico had challenged the rule for muscle cuts of meat at the WTO, arguing that COOL has a trade-distorting impact by reducing the value and number of cattle and hogs shipped to the U.S. market. WTO found the United States to be in noncompliance with its international trade obligations. The ruling is a concern to the U.S. dairy industry because of potential retaliation against U.S. dairy exports.

WTO’s decision on the total value

of tariffs Canada and Mexico can im-pose against U.S. products is expected next week.

“Retaliation against dairy products would come at a particularly harmful time for our industry, given the de-pressed global dairy market,” says Jim Mulhern, president and CEO, NMPF. “Multiple cooperatives have already faced an oversupply of milk this year.”

“Retaliatory tariffs would back up exports further onto the U.S. market during a time of overly abundant milk supplies,” adds USDEC President Tom Suber. “U.S. dairy producers and processors cannot lose this chance to avoid considerable damage to the export markets they have invested so heavily in developing in recent years.”

Canada and Mexico are two of the largest U.S. dairy export markets. Together, they import more than $2 billion in U.S. dairy products annu-ally, the organizations note. CMN

National Restaurant Association fi les suit against New York City’s sodium mandateWASHINGTON — The National Restaurant Association this week fi led suit against the New York City Depart-ment of Health over its decision requir-ing chain restaurants of at least 15 stores to post warning icons next to menu items or combination meals containing 2,300 milligrams or more of sodium.

The sodium requirement went into effect Tuesday. Foodservice establish-ments in New York City that are part of chains with 15 or more locations must post the warning. The rule also requires chain foodservice establishments to post a warning statement where custom-ers place their orders. The statement explains that items with the icon have more than the recommended daily limit of sodium and that high sodium intake can increase blood pressure and risk of heart disease and stroke.

The New York City Department of Health says the regulation has been enacted to reduce the amount of sodium consumed by adults and help them to better understand the link between high sodium intake and hypertension, heart disease and stroke. Offi cials have indicated the agency will not issue fi nes for noncompliance until March 1 and plan to have health inspectors educate operators on the rule during that time.

The National Restaurant Associa-tion says that the mandate is another in a series of burdensome, costly and unnecessary regulations the city has heaped upon local restaurants.

“Consumers should have the same access to nutrition information from Portland, Maine, to Portland, Oregon,” the association says. “Restaurateurs across the country are already working diligently to comply with the federal menu labeling law by providing comprehensive and uni-form nutrition information to consumers.”

FDA’s federal menu labeling law is

set to take effect in December 2016.The association says local mandates

like the one put forth by New York City would unravel that uniformity and “place an overly onerous and hefty burden” on restaurateurs who already are grappling with increased operating costs resulting from recent actions taken by New York Gov. Andrew Cuomo’s administration.

“With its sodium mandate, the board of health is not only infl icting fi nancial burden on restaurants, but also imposing a view regarding the health effects of so-dium intake that is the subject of scrutiny based on recent and evolving research,” the National Restaurant Association says.

“The Department of Health thinks it is targeting corporate chains, but in reality is dealing yet another blow to many of New York’s small businesses that have been working and continue to work hard to provide nutritional access to their customers,” the as-sociation adds. “That is why we are taking legal action against this latest assault. It goes too far, too fast for New York’s restaurant community.” CMN

Domino’s, national dairy checkoff partnership offers early Cyber Monday deal, ends Dec. 6ROSEMONT, Ill. — The dairy checkoff’s work with partners such as Domino’s continues to revitalize the pizza category to benefi t dairy farm-ers, according to Dairy Management Inc. (DMI), which manages the na-tional dairy checkoff. The checkoff’s cheese work in pizza and foodservice has helped move 4 billion incremen-tal pounds of milk from January of 2014 to July of 2015, DMI says.

The latest example of how dairy farmers and importers are working with Domino’s is through a 10-day marketing and media promotion for all pizzas ordered through www.dominos.com.

DMI says Domino’s began its Cyber Monday promotion three days earlier (Nov. 27 through Dec. 6) thanks to local checkoff organizations that have helped Domino’s increase its marketing and media work. The pro-motion includes national Domino’s

advertising and digital marketing, plus online conversations from the checkoff.

“Local promotion farmer lead-ers support this effort because the investment goes directly to markets where people live, and we expect it to deliver positive results,” says Neil Hoff, chairman of the United Dairy Industry Association. “This is another strong example of local and national dairy promotion dollars working together to increase demand for dairy.”

Domino’s chief marketing offi cer Joe Jordan says the partnership with America’s dairy farm families continues to uncover new ways to deliver more cheese to customers across the country.

“Our relationship with dairy farmers is a major strength for us, not just on Black Friday, but every day,” he says. CMN

“With its sodium mandate, the board of health is not only infl icting fi nancial

burden on restaurants, but also imposing a view regarding the health effects of sodium intake.”

NATIONAL RESTAURANT ASSOCIATION

Page 6: Analysts anticipate 2016 will be challenging for dairy marketSeptember 2015, New Zealand increased sales of whole milk powder (WMP) to the Middle East/North Africa (MENA) region and

© 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected])

6 CHEESE MARKET NEWS® — December 4, 2015

AWARDSContinued from page 1

NEWS/BUSINESS

For more information please visit www.ivarsoninc.com

Photo courtesy of the Guild of Fine Food

WORLD WINNER — Bob Farrand (left), Guild of Fine Food chairman and World Cheese Awards founder, and John Farrand (right), managing director of the Guild of Fine Food, present the World Cheese Awards championship trophy to René Ruch of Switzerland’s Cremo SA, which made the winning Le Gruyère AOP Premier Cru.

“To win again and again is fantastic, and to win against all these incredible cheeses from around the world is a real honor,” says René Ruch of Cremo SA. “This award represents the hard work and dedication of our farmers, cheesemakers and affi neurs, so I’m very proud to be going back to Switzerland to congratulate them.”

Judges awarded Cremo SA’s Le Gruyère AOP 69 points out of a pos-sible 80 in the fi nal round. A French Tomme Brebis-Chèvre from Onetik and a Burrata from the United Kingdom’s La Credenza Ltd. tied for second with 68 points each in the fi nal round.

Harbison, a soft-ripened, bloomy-rind cheese made by Cellars at Jasper Hill, Greensboro, Vermont, won the trophy for “Best American Cheese” sponsored by The Artisan Cheese Ex-change of Sheboygan, Wisconsin.

Harbison was among eight U.S. cheeses that won “super golds,” given to the top 62 cheeses in the contest. In addition to its awards for Harbison, Cellars at Jasper Hill also received a gold medal for Winnimere, silver med-als for Cabot Clothbound Cheddar and Cabot Clothbound Cheddar Select, and bronze medals for Kinsman Ridge from Landaff Creamery and Moses Sleeper.

Baetje Farms LLC, Bloomsdale, Missouri, was awarded a super gold medal for Miette and a silver medal for Bloomsdale.

Carr Valley Cheese Co. Inc., La Valle, Wisconsin, won a super gold for Smoked Billy Blue, a gold for Cave Aged Mellage, a silver for Aged Marisa and bronze medals for Big Mutton Button, Bread Cheese and Caso Bolo Mellage.

Cypress Grove Chevre, Arcata, Cali-fornia, won a super gold for Midnight

Moon and bronze medals for Humboldt Fog Mini and Purple Haze.

Goldin Artisan Goat Cheese LLC, Molalla, Oregon, received a super gold award for its Chaumine.

Lioni Latticini Inc., Union, New Jersey, won a super gold for its Burrata Con Tartufo.

Marin French Cheese, Petaluma, California, won a super gold for its Schloss and bronze medals for Petite Camembert and Supreme Brie.

Saputo Specialty Cheese, Richfi eld, Wisconsin, won a super gold for its Re-serve Blue, silver medals for Colby Jack and Liederkranz, and bronze medals for Gorgonzola, Colby, Vintage Blue, Aged Asiago and Smokehaus Blue. Saputo Cheese USA, Lincolnshire, Illinois, also won a bronze for Stella Blue.

Several other U.S. cheesemakers also won medals at the World Cheese Awards.

Alouette Cheese USA, New Hol-land, Pennsylvania, won a silver medal for Alouette Special Reserve Brie 17.6-ounce and a bronze medal for Alouette Double Creme Brie 8-ounce.

Arthur Schuman Inc., Fairfield, New Jersey, son a silver medal for Cello Riserva Hand Crafted Asiago.

The Artisan Cheese Exchange was awarded a silver medal for Deer Creek The Fawn.

Barinaga Ranch, Marshall, Califor-nia, won a silver medal for Txiki.

Beehive Cheese Co. LLC, Uintah, Utah, won a silver medal for Promontory.

Belfiore Cheese Co., Berkeley, California, won a bronze medal for its Burrata.

Briar Rose Creamery, Portland, Oregon, won a gold medal for Lorelei.

CROPP Cooperative/Organic Val-ley, La Farge, Wisconsin, won a bronze medal for Organic Raw Grassmilk Sharp Cheddar.

Emmi Roth USA, Monroe, Wisconsin,

won a gold medal for Roth Gran Cru Reserve, a silver for Roth GranQueso Re-serve and a bronze for Roth GranQueso.

Fern’s Edge Dairy, Lowell, Oregon, won a gold medal for Goata.

Firefl y Farms, Accident, Maryland, won a silver medal for Black & Blue and a bronze for Cabra LaMancha.

Haystack Mountain Goat Dairy, Longmont, Colorado, won a silver medal for Queso de Mano.

Holland’s Family Cheese, Thorp, Wis-consin, won a bronze medal for Marieke Gouda Premium (12-18 months).

Jacobs and Brichford Farmstead Cheese, Connersville, Indiana, won a bronze medal for Everton.

Joseph Gallo Farms, Atwater, California, won a bronze medal for its Provolone.

Lactalis American Group, Buffalo, New York, won silver medals for Presi-dent Triple Cream Brie 1-kilogram and Sorrento Mascarpone 16-ounce, and bronze medals for President Plain Brie 1-kilogram, Whey-Based Part-Skim

Ricotta, Enhanced Part-Skim Ricotta and Enhanced Whole Milk Ricotta.

Laura Chenel’s Chevre, Sonoma, California, won a silver medal for its Chef’s Chèvre.

Leelanau Cheese Co., Suttons Bay, Michigan, won silver medals for two Ra-clette entries and one Aged Raclette entry.

MontChevré-Betin Inc., Belmont, Wisconsin, won silver medals for Fresh Goat Cheese with Truffl e and Chevre in Blue, and a bronze for Cranberry Orange Goat Cheese.

Old Chatham Sheepherding Co., Old Chatham, New York, won a gold medal for Nancy’s Hudson Valley Camembert.

Old Europe Cheese Inc., Benton Harbor, Michigan, won a silver medal for its 3-kilogram Triple Cream Brie and a bronze for its 8-ounce Triple Cream Brie with Herb Layer.

Orland Farmstead Creamery, Or-land, California, won a silver medal for its Fromage Blanc.

Rogue Creamery, Central Point, Oregon, won a bronze medal for Mount Mazama Cheddar.

Sartori Co., Plymouth, Wisconsin, won gold medals for Sartori Reserve Balsamic BellaVitano, Sartori Reserve Merlot BellaVitano and Sartori Reserve BellaVitano Gold; silver medals for Sartori Reserve Kentucky Bourbon BellaVitano, Sartori Limited Edition Extra-Aged Goat and Sartori Classic Parmesan; and bronze medals for Sar-tori Limited Edition Pastorale Blend and Sartori Classic MontAmoré.

Sweet Grass Dairy, Thomasville, Georgia, won bronze medals for Green Hill and Asher Blue.

Uplands Cheese, Dodgeville, Wiscon-sin, won a bronze medal for Pleasant Ridge Reserve.

V&V Supremo Foods Inc., Chicago, was awarded a bronze medal for its Chihuahua cheese.

Vermont Creamery won a silver medal for its Crème Fraîche Madagas-car Vanilla and bronze medals for its Feta and its Crumbled Goat Cheese Cranberry & Tarragon.

For complete results and more information, visit https://gff.co.uk/awards/world-cheese-awards. CMN

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December 4, 2015 — CHEESE MARKET NEWS® 7

For more information please visit www.urschel.comFor more information please visit www.wowlogistics.com

®

®

MAXIMIZED CAPACITYMAXIMIZED CAPACITYMAXIMIZED CAPACITY

EVENTS

ITHACA, N.Y. — Cornell University’s Dairy Foods Extension will offer a Vat Pasteurizer Workshop Jan. 12 with hands-on pasteurization activities at Sohha Savory Yogurt in Astoria, New York.

According to Cornell University, the workshop is designed for small-scale dairy processors and is a required part of the Dairy Extension Basic Cheese Making Certifi cate Program.

The course begins with an online lecture component covering key areas

Cornell to offer Vat Pasteurizer Workshoprelated to vat pasteurization. Online portions must be completed prior to the hands-on sessions.

Organizers say the course is ideally suited for pasteurizer operators, cheese manufacturers, production, engineer-ing, and maintenance personnel and is instructed by industry experts and Cornell Dairy Foods Extension.

For more information, visit http://dairyextension.foodscience.cornell.edu/content/vat-pasteurization-nyc-workshop. CMN

PORTLAND, Maine — FirstSource Events will host Deli&Cheese 1on1, a who’s who in deli and cheese event, Feb. 10-12 in Hilton Head Island, South Carolina. New this year, there will be an educational component.

Deli&Cheese 1on1 will include fi ve interactive panels as well as presenta-tions and samplings that will provide buyers and sellers opportunities to learn from industry experts.

Panels include “Whether to Pur-chase or Make Prepared Foods In-House” and “Making the Right Mix in a Multi-State Retail Chain,” with

FirstSource presents deli, cheese eventrepresentatives from Fairway Markets, Murray’s Cheese and Fresh Direct; “Food Safety Training”; and “What’s in a Name? European vs. American Cheeses.”

In addition to educational content, suppliers will deliver closed-door pre-sentations to all buyers and showcase their products for sampling before the fi nal day of one-on-one meetings. Early registrants for Deli&Cheese1on1 include Kroger, Meijer, Giant Eagle, SuperValu and Murray’s Cheese.

For more information, visit www.Deli-Cheese1on1.com. CMN

WASHINGTON — The 2016 Interna-tional Sweetener Colloquium, co-hosted by the Sweetener Users Association and the International Dairy Foods As-sociation (IDFA), will be Feb. 21-24 at the Turnberry Isle Miami in Adventura, Florida.

According to IDFA, the annual event will provide an opportunity for key players from all sectors to discuss the most pressing issues facing the global sweetener industry.

International Sweetener Colloquium brings together key players in sweetener industry

Session topics include: North Ameri-can and World Sugar Outlook, Consumer Trends and Insights, What Lies Ahead For Corn Sweeteners And Other Ingredi-ents?, GMO Labeling, The Business Case for a Sustainable Sugarcane Industry and Sugar Policy Landscape.

For more information, email Ma-ria Velasco, meetings coordinator, IDFA, at [email protected] or visit http://www.idfa.org/forms/meeting/Microsite/ISC_2016,0. CMN

WASHINGTON — USDA will host the 92nd Annual Agricultural Outlook Fo-rum Feb. 25-26 at the Crystal Gateway Marriott Hotel in Arlington, Virginia. The theme will be Transforming Ag-riculture: Blending Technology and Tradition.

“The challenges and opportuni-ties for agriculture and rural America are changing,” USDA says. “In 2015, American farmers persevered in the face of drought and an unprecedented animal disease outbreak. Demograph-ics are also changing in rural America and across farm households.”

USDA says it continues to seek out new and innovative ways to expand opportunity and provide support for America’s farming families, and that mission will form the basis for the fo-rum.

The panel Providing Leadership for Present and Future Generations in the Transformation of Agriculture will feature remarks from Agriculture Secretary Tom Vilsack and Deputy Secretary Krysta Harden. Thirty track

USDA announces 2016 Agricultural Outlook Forum Feb. 25-26 in Arlington, Virginia

sessions supporting this theme in-clude the Agriculture Talent Pipeline, Bioproducts, Commodities, Land & Tenure Transition, New Markets, Or-ganics, Risk Management, Scientifi c Advancement and Trade to Urban Ag-riculture.

USDA Chief Economist Robert Jo-hansson will present The 2016 Eco-nomic Outlook for Agriculture. The forum’s keynote address will be deliv-ered by Howard Buffett, CEO, Howard G. Buffett Foundation. Mitch E. Dan-iels, Jr., president of Purdue Univer-sity and former Governor of Indiana, will be the dinner speaker.

Harden also will host a session on opportunities in agriculture for new and beginning farmers ranchers, and she will host a women’s agriculture networking event.

USDA says the forum serves as a platform to facilitate con-versation of key issues and top-ics within the agricultural com-munity. For more information, visit www.usda.gov/oce/forum/. CMN

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© 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected])

8 CHEESE MARKET NEWS® — December 4, 2015

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California, has named Sarah Bird as chief sales and marketing offi cer. Bird will work with the team to build the brand at retail and drive consumer engagement. She recently held the position of chief marketing offi cer at Annie’s Inc. and serves as secretary of the Organic Trade Association’s board.

Impossible Foods Inc., Redwood City, California, which makes plant-based meat and cheese-type products, has announced David Lee as the com-pany’s new chief operating offi cer and CFO, effective Dec. 14. Previously, Lee has served in leadership positions at Zynga, Del Monte Foods and Best Buy.

Wisconsin Milk Marketing Board, Madison, Wisconsin, has announced Holly Schmitz as the Midwest regional marketing manager. Schmitz will rep-resent the Wisconsin Milk Marketing Board in the retail and foodservice chan-

nels where she will develop and imple-ment business plans and marketing programs for accounts in the Midwest.

The WhiteWave Foods Co., Den-ver, has announced Blaine McPeak, president of the Americas Foods and Beverages division, will be promoted to the newly created position of chief operating offi cer and will assume re-sponsibility for all global operations of the company. McPeak will continue to report to Gregg Engles, chairman of the board and CEO. Kevin Yost, presi-dent of Americas Fresh Foods, will be promoted to U.S. group president of Americas Foods and Beverages, over-seeing WhiteWave’s U.S. businesses including Silk, So Delicious, Horizon, Wallaby Organic, Earthbound Farm and International Delight. Yost will report to McPeak. The international operations of Americas Foods and Beverages will con-tinue to be managed by McPeak. CMN

PEOPLE

WASHINGTON — The Horatio Alger Association of Distinguished Americans Inc., a nonprofi t educational organiza-tion, recently announced Mark Davis, chairman, Davis Family Holdings, will receive the Horatio Alger Award.

Davis joins 12 other business and civic leaders from across North Ameri-ca in receiving the honor in 2016. The Horatio Alger Award is given annually to recognized leaders who have suc-ceeded, despite facing adversity, and who are committed to both philan-thropy and higher education, accord-ing to the association.

After Davis earned a degree in busi-ness administration and economics from Mankato State University (now Minnesota State), he began working at St. Peter Creamery, owned by his fa-ther. When the butter business faced challenges in the late 1960s, Davis left and began making cheese. In 1969, he

Davis Family Holdings chairman, former cheesemaker, to receive Horatio Alger Award

purchased Le Sueur Creamery, and in 1971 he founded the Le Sueur Cheese Co., which then merged with St. Peter Creamery.

In 1993, Le Sueur Cheese Co. merged with Jerome Cheese Co., which Davis founded with backing from Kraft Foods. The merger launched Davisco Foods International. Davis led the business until his son was appointed CEO in 2012 and Davis became chair-man. Davisco Foods became a division of Agropur in 2014. In addition, the Davis family owns Cambria, a manu-facturer and retailer of quartz counter tops; Cambria Mortgage; Davis Family Dairies; and Sun Country Airlines.

“It is a great honor to be in-ducted into Horatio Alger Associa-tion and to be recognized for over-coming the challenges that helped shape me both professionally and personally,” Davis says. CMN

BROOKINGS, S.D. — South Da-kota State University (SDSU) has announced David Schingoethe, Dairy Science Department distinguished professor emeritus, as the National Dairy Shrine Pioneer award recipient, and Chelsey Johnson, a 2014 SDSU graduate, as the National Dairy Shrine second place Student Recognition Award recipient.

Dr. Vikram Mistry, who leads the SDSU Dairy Science Department, says the National Shrine Pioneer Award recognizes dairy industry leaders who have contributed to strengthening and energizing the dairy industry.

“Dr. Schingoethe has been a true

South Dakota State University recognizes Schingoethe, Johnson as dairy leaderspioneer when it comes to dairy nutri-tion work,” Mistry says. “He has made a signifi cant and lasting impact on the national dairy industry. He also did an outstanding job of both training stu-dents and serving his fellow professors, all while being at the forefront of dairy cattle nutrition research.”

Schingoethe joined the SDSU Dairy Science Department in 1969 as assistant professor and retired as distinguished professor in 2011. Ac-cording to SDSU, his research has covered the areas of dairy nutrition, enhancing the nutritional value of milkfat, optimization of forage use and applications of byproducts in

feed. “He has been a leader in the appli-

cation of cheese whey in dairy cattle feeding and in the use of agricultural byproducts such as distiller’s grains and sunfl ower byproducts in dairy cattle diets.

“Dr. Schingoethe has studied the impact of cattle feeding techniques on the nutritional and processing characteristics of milk and milk prod-ucts,” Mistry says. “His work clearly has had a positive impact on dairy cattle nutrition, ration development and milk production.”

According to SDSU, the National Dairy Shrine recognizes dairy industry

leaders at all levels, with more than 18,000 members from all facets of dairy industry. The group annually inducts members into its Hall of Fame during a banquet held as part of World Dairy Expo, recognizes current dairy leaders and provides scholarships to future dairy leaders.

While at SDSU, Johnson double-majored in dairy production and agri-culture education and communication and leadership with a communication specialization. She also earned minors in animal science and advertising. She now is employed at Accelerated Genet-ics, in Baraboo, Wisconsin, as a digital communications coordinator. CMN

UNIVERSITY PARK, Pa. — Pennsylvania State University’s College of Agricul-tural Sciences has named Beth Panko Briczinski, Annandale, Virginia, a 2015 Outstanding Recent Alumna. The award recognizes alumni who have graduated in the past 10 years.

Briczinski earned her bachelor’s (1998), master’s (2001) and doctoral (2007) degrees in food science from Penn State. She currently is vice presi-dent of dairy foods and nutrition at the National Milk Producers Federation (NMPF).

Since joining the federation in 2010, Penn State says Briczinski has earned a reputation as a strong leader and advocate for the dairy industry whose work has had a direct, positive impact on dairy producers. She works with state and federal agencies on regulatory issues in the areas of food safety and nutrition.

“Her contributions to the overall collaboration and coordination of

Penn State University names Beth Panko Briczinski 2015 Outstanding Recent Alumna

the dairy industry assure consumer confi dence in the safety of the U.S. milk supply and maintain dairy’s strong position within federal nutri-tion and feeding programs,” Penn State says.

Briczinski is a member of and has held leadership positions in the American Dairy Science Associa-tion, the International Association of Food Protection and the Insti-tute of Food Technologists. She also serves on the executive board and technical committees of the Nation-al Conference on Interstate Milk Shipments.

As a graduate student at Penn State, Briczinski was a guest speaker in workshops and short courses, and instructed more than 1,500 students from various backgrounds within the food industry. Since graduating, she has also has guest-lectured in Penn State’s dairy food science un-dergraduate course. CMN

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© 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected])

December 4, 2015 — CHEESE MARKET NEWS® 9

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10 CHEESE MARKET NEWS® — December 4, 2015

For more information please visit www.cheesemarketnews.com

NEWS/BUSINESS

According to Emmi Group, the plan is to make use of specifi c synergies within it in order to build on the potential for growth. Redwood Hill and another Emmi-owned company, Cypress Grove Chevre, Arcata, California, will col-laborate to increase ways of spreading goat’s milk production.

“We have shown our ability to do a particularly good job of integrating pioneering family-owned enterprises into the Emmi Group over the long term,” says Urs Riedener, CEO, Emmi Group. “Maintaining the culture specifi c to a fi rm helps to further reinforce its success on the market.”

Emmi Group says it will take over Redwood Hill entirely by the end of the year, while Bice will remain owner of the goat farm and will oversee day-to-day operations of the company. The parties have agreed not to disclose the purchase price.

“I want you to know why I chose Emmi — a company which is majority owned by a cooperative of small-scale dairy farmers,” Bice says. “This change will benefi t our community and will al-low me to deepen my relationship with my animals and the land that sustains us all.”

Bice calls the decision a diffi cult one that she made over a long period of time. Earlier this year, she visited Emmi in Switzerland and several of the company’s production facilities as well as cow and goat dairy farms from which the company sources its milk.

“I was deeply impressed with the thoroughness and effi ciency with which they run their dairy operations,” Bice says. “I saw employees who received training and were promoted from within, which is what I have always aspired to do at Redwood Hill.”

She also says in a few years she will be ready to retire from day-to-day op-erations, but will remain involved with Redwood Hill Farm & Creamery either in cheesemaking or as a strategic advisor and spokesperson.

“Going through this process has re-minded me how important it is to look toward the next generation of farmers and cheesemakers,” Bice says. “This ac-quisition is the result of years of careful research and succession planning to en-sure Redwood Hill Farm & Creamery will continue to thrive as a Sonoma County business, a community resource and a dairy producer that brings goat milk dairy and lactose-free cow milk dairy to people from coast to coast.” CMN

EMMIContinued from page 1

Restaurant Performance Index rises 0.7 percent in October, up for 32nd consecutive monthWASHINGTON — Driven by stronger same-store sales and a more optimistic outlook among restaurant operators, the National Restaurant Association’s Restaurant Performance Index (RPI) stood at 102.1 in October, up 0.7 percent from a level of 101.4 in September. Oc-tober represented the 32nd consecutive month in which the RPI stood above 100, which signifi es expansion in the index

of key industry indicators.The Current Situation Index, which

measures current trends in same-store sales, traffi c, labor and capital expendi-tures, stood at 102.5 in October, up 1.2 percent from September and the highest level in three months. In addition, the Current Situation Index remained above 100 for the 20th consecutive month.

Sixty-one percent of restaurant

operators reported a same-store sales gain between October 2014 and October 2015, up from 51 percent who reported higher sales in September.

Forty-one percent of restaurant operators reported an increase in cus-tomer traffi c between October 2014 and October 2015, down from 42 percent in September. Thirty-six percent of operators said their traffi c declined in October, compared to 38 percent in September.

Seventy-six percent of operators said they made a capital expenditure for equipment, expansion or remodeling during the last three months.

The Expectations Index, which mea-sures restaurant operators’ six-month outlook for same-store sales, employees, capital expenditures and business con-ditions, stood at 101.6 in October, up from a level of 101.4 in September. Oc-tober represented the 36th consecutive month in which the Expectations Index stood above 100, which the National Restaurant Association says indicates

restaurant operators remain generally optimistic about business conditions in the coming months.

Forty percent of restaurant opera-tors expect to have higher sales in six months (compared to the same period in the previous year), up from 35 percent who reported similarly last month. Six percent of restaurant operators expect their sales volume in six months to be lower than it was during the same period in the previous year, down from 12 percent last month.

Nineteen percent of restaurant operators say they expect economic con-ditions to improve in six months, while 9 percent expect conditions to worsen. The National Restaurant Association says this represents the strongest net positive reading in fi ve months.

Lastly, 59 percent of restaurant operators plan to make a capital expenditure for equipment, expan-sion or remodeling in the next six months, down from 62 percent who reported similarly last month. CMN

Former U.S. ag secretaries urge TPP passageWASHINGTON — A bipartisan group of former U.S. agriculture secretaries recently issued an open letter urging Congress to pass the Trans Pacifi c Partnership (TPP), noting that opening new markets for exports is critical for farmers and rural communities.

The former secretaries say in their letter that the TPP agreement repre-sents a “rebalance toward Asia,” where populations and purchasing power are increasing.

“We will in the future benefi t sig-nificantly from increased access to those markets,” the letter says. We have long had aspirations to sell more of our products to Japan, and we’ll now have

that enhanced opportunity. But TPP also opens up new markets in the growing economies of Vietnam and Malaysia. And it even provides additional access to Canada’s poultry, egg and dairy markets.”

In addition to its market access benefi ts, the former secretaries say TPP will estab-lish the “rules of the game for international trade — and help drive up standards for the entire world — for years to come.”

The letter was signed by former USDA secretaries Ed Schafer (2008-2009), Mike Johanns (2005-2007), Ann Veneman (2001-2005), Dan Glickman (1995-2001), Mike Espy (1993-1994), Clayton K. Yeutter (1989-1991) and John R. Block (1981-1986). CMN

FCStone Financial Inc. now member of NZXWELLINGTON, New Zealand — NZX, New Zealand’s securities and futures exchange, recently announced that INTL FCStone Financial Inc. has been accredited as a Derivatives Trading and Advising Participant and a General Clearing Participant for the NZX Dairy Derivatives Market. INTL FCStone is the second U.S.-based participant to gain full membership status since NZX was granted authorization as a foreign board of trade by the Commodity Fu-tures Trading Commission (CFTC) in 2014. The other is Straits Financial LLC.

NZX says the addition of INTL FCS-

tone is an important milestone providing greater access for those looking to trade on NZX, particularly out of the United States.

“NZX’s dairy derivatives products have proven themselves as increasingly useful risk management products in the global dairy sector,” says Robert Chesler, vice president of INTL FCStone’s Foods Group. “INTL FCStone’s presence in the commodity space throughout the U.S. puts us in a strong position to further develop this market by offer-ing access to our customers within the U.S. and further abroad that are interested in trading on NZX.” CMN

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December 4, 2015 — CHEESE MARKET NEWS® 11

NASSContinued from page 1

NEWS/BUSINESS

2015’s 134.9 million pounds. This is a 5.9-percent increase when adjusted to an average daily basis.

California led the nation’s butter production with 41.8 million pounds in October, down 9.0 percent from its production a year earlier.

NASS further reports U.S. pro-duction of nonfat dry milk suitable for human consumption in October 2015 was 118.7 million pounds, down 11.9 percent from the na-tion’s production a year earlier. CMN

Global Dairy Trade price index up 3.6 percentAUCKLAND, New Zealand — Average prices for most commodities improved Tuesday on Global Dairy Trade (GDT), Fonterra’s internet-based sales plat-form, and the GDT price index increased 3.6 percent.

The average price achieved across all contracts and contract periods fell for buttermilk powder, down 5.6 percent to US$1,729 per metric ton FAS ($0.7843 per pound); Cheddar, down 1.5 percent to US$2,829 per metric ton FAS ($1.2832 per pound); and rennet casein, down 4.3 percent to US$5,046 per metric ton FAS ($2.2889 per pound).

Prices increased for all other com-modities on GDT Tuesday. The average prices and percent increase from last month are as follows:

• Anhydrous milkfat: US$3,519 per metric ton FAS ($1.5962 per pound), up 2.3 percent.

• Butter: US$3,009 per metric ton FAS ($1.3649 per pound), up 5.7 percent.

• Lactose: US$507 per metric ton FAS ($0.2300 per pound), up 1.7 percent.

• Skim milk powder: US$1,918 per metric ton FAS ($0.8700 per pound), up 3.2 percent.

• Whole milk powder: US$2,260 per metric ton FAS ($1.0251 per pound), up 5.3 percent.

The next trading event will be held

Dec. 15.Meanwhile, GDT says no comments

were received on three additional amendments to the GDT Market Rules and the Oversight Board Charter that GDT requested comment on Nov. 13.

GDT says it will publish the fi nalized market rules and charter later this month, with the new rules taking effect Jan. 5, 2016. For more information, visit www.globaldairytrade.info/assets/Uploads/resources/Oversight-Board-further-pro-posed-amendments-Nov-13.pdf. CMN

OUTLOOKContinued from page 1

U.S. stocks have been building. China inventory levels are beginning to nor-malize, as are those in New Zealand, although the latter still needs to clear fl ush production.

Surpluses will keep a lid on prices in Oceania, Beck says. This week’s Global Dairy Trade (GDT) auction showed price improvement for sev-eral commodities, but Beck cautions it would take several trading sessions of higher prices to suggest a signifi cant “recovery.” (See article below for latest GDT results.)

Beck and Levitt anticipate that global oversupply and market weakness will persist into 2016. While produc-

tion should pull back, “destocking” still must occur to bring the market in balance.

“It may be 2017 before global im-ports return to the peak levels of 2014, because the rest of the world isn’t likely to grow imports enough to make up for the losses of China and Russia,” Beck says.

At the same time, global competi-tion will be fi erce, and returns from the world market are likely to be lower than returns from the U.S. market.

“In this more competitive environ-ment, not everyone can grow; who is preparing to compete to win?” Beck says.

“Inventory will remain our ‘problem child’ in the coming year,” Levitt adds. “This inventory will have to come back to the market.”

Meanwhile, USDA’s Economic Research Service and Foreign Agri-cultural Service this week released its latest Outlook for U.S. Agricultural Trade. The outlook forecasts overall fi scal year 2016 agriculture exports will be valued at $131.5 billion, down $7.0 billion from the last forecast in August and $8.2 billion below fi nal fi s-cal 2015 exports. Most of the decline is accounted for by lower prices, strong competition and diminishing Chinese demand, USDA says.

The forecast for livestock, dairy and poultry is lowered $2.2 billion largely due to depressed prices for beef and pork spurred by increased supplies, USDA says. Dairy is lowered $200 million to $5.6 billion as global dairy supplies are large and unit values remain weak.

Fiscal 2016 imports will be valued at a record $122.0 billion, down $0.5

billion from August’s forecast but $8.0 billion higher than fi scal 2015, USDA says. This brings the U.S. agricultural trade surplus forecast to $9.5 billion, down from $25.6 billion in fi scal 2015 and the lowest level since fi scal 2006, USDA says.

The forecast for fi scal 2016 cheese imports is unchanged from August at $1.4 billion, up from $1.3 billion in 2015 and $1.2 billion in 2014.

USDA notes the United States continues to be a driver of the world economy, with a 2015 growth rate of 2.4 percent. Strong labor market indicators point to more jobs and rising wages through 2015, lifting con-sumer spending. However, relatively weak foreign demand and a strong dollar will continue to put pressure on exports.

To view the outlook report, visit www.ers.usda.gov. CMN

Peak Rock Capital affi liate buys Berner FoodAUSTIN, Texas — An affi liate of Peak Rock Capital, a private equity fi rm, has acquired Berner Food & Beverage LLC, a Chicago-based manufacturer of dairy-based food products and beverages.

According to Peak Rock Capital, Berner Food & Beverage is a producer of private label cheese dips, salsa con queso, Alfredo sauce, aerosol cheese products and coffee, and latte-based beverages. The company serves a cus-

tomer base of consumer packaged goods companies and private label retailers.

“Our acquisition of Berner highlights Peak Rock’s continued desire to invest in industry leading food businesses where we can leverage the extensive sector experience of our principals and an experienced management team to drive growth and operational improvements,” says Anthony DiSim-one, CEO, Peak Rock Capital. CMN

Page 12: Analysts anticipate 2016 will be challenging for dairy marketSeptember 2015, New Zealand increased sales of whole milk powder (WMP) to the Middle East/North Africa (MENA) region and

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12 CHEESE MARKET NEWS® — December 4, 2015

NEWS/BUSINESS

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WASHINGTON — The Environmental Protection Agency (EPA) this week issued its fi nal rule on the Renewable Volume Obligation (RVO) for biofuels. Although the proposed rule to the Re-newable Fuel Standard (RFS) issued earlier this year contained a lower ethanol blend requirement, the ethanol mandate will increase for 2016 under the fi nal rule.

The RFS fuel mandate determines the amount of ethanol and biofuels re-fi ners must blend into the nation’s fuel supply on a year-to-year basis. Ethanol uses nearly 40 percent of the corn grown in the United States. This has increased feed costs, squeezed producer’s margins

and ultimately, increased the price of food worldwide, stakeholders say.

For 2016, the EPA set the require-ment at 14.5 billion gallons of biofuel, an increase of 500 million gallons from the proposed rule, yet 500 million gal-lons below the statutory limit set by Congress in the Energy Independence and Security Act of 2007.

“This could be viewed as a win for the food industry, because the ethanol requirement will come in below the target amount established by Congress,” says Chelsee Woodey, director of legisla-tive affairs for the International Dairy Foods Association (IDFA).

IDFA has been a longtime supporter

of reforming the RFS and is active in a coalition of food groups that supports bipartisan legislation that would protect food makers and consumers from un-necessary food price increases. Several bipartisan bills have been introduced in Congress this year to reform or repeal the corn-based ethanol requirement in the RFS.

Meanwhile, some agriculture groups say the levels are not high enough.

U.S. Sen. Debbie Stabenow, D-Mich., ranking member of the Senate Agriculture Committee, says the RFS has proven to be an effective tool for strengthening the U.S. advanced biofuels industry and creating a clean

energy future.However, she adds EPA should

be building on that progress by fully implementing the targets established by Congress.

“While (this) announcement falls short of that goal, I am pleased that the target levels have been increased from the initial proposal,” Stabenow says. “I will continue to fi ght for a strong Renewable Fuel Standard that meets the targets set by Congress so that American biofuel producers can compete fairly at the pump.”

The National Farmers Union (NFU) and American Farm Bureau Federation (AFBF) voiced concern with the fi nal volume requirements under the RFS.

Roger Johnson, president, NFU, criticized EPA for issuing fi nal volume targets that were “well below” their statutory levels, further damaging in-vestment in the renewable fuel sector and undermining the Obama admin-istration’s efforts to combat climate change.

EPA issues fi nal rule on increased volume requirements under Renewable Fuel Standard

“By changing the RFS, the administration is undermining its own

climate change agenda in the midst of

negotiations on an international climate change agreement.”

Roger JohnsonNATIONAL FARMERS UNION

“The administration’s decision to is-sue RFS volume obligations below their statutory requirements exacerbates the serious damage already done to the renewable fuels industry and America’s family farmers,” he says. “The RFS has helped family farmers and the nation make tangible steps toward mitigating climate change by making real reduc-tions in greenhouse gas emissions. By damaging the RFS, the administration is undermining its own climate change agenda in the midst of negotiations on an international climate change agreement.”

Bob Stallman, president, AFBF, adds, the nation needs more biofuels, not less.

“We are disappointed to see the agency move forward with a decision that will stall growth and progress in renewable fuels as well as the broader agricultural economy,” he says. “Farm-ers, ranchers and consumers will be impacted by the drop in ethanol production and the falloff in livestock feed that goes along with it. In the end, we lose jobs and stability that come from growing renewable fuel.” CMN