cheese companies among those urging passage of tpa · puto dairy foods usa llc. the letters...

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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]) Production of U.S. cheese climbs while butter falls WASHINGTON — Total U.S. cheese production, excluding cottage cheese, totaled 884.3 million pounds in February, 3.9 percent above February 2014’s 850.9 million pounds, accord- ing 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 10.) February cheese production was 9.5 percent below January 2015’s 977.4 million pounds due to the length of the months, but on an average daily basis cheese production was up 0.2 percent in February. Italian-type cheese production totaled 394.2 million pounds in February, according to NASS, up 5.4 percent from February 2014’s 374.1 million pounds. Production of Mozzarella, the most-produced cheese type in the United EU milk quota ends; global industry prepares for impact BRUSSELS, Belgium — As the European Union’s (EU) milk quota system ended Tuesday, dairy industry groups in both Europe and the United States look at what this will mean for both the short- and long- term future. The EU milk quota first was introduced in 1984, which milk pro- duction far outstripped demand, according to the European Commis- sion (EC). The quota system was one of the tools introduced to help overcome these surpluses. Subsequent reforms to the EU’s Common Agriculture Policy (CAP) have increased the market orientation of the sector and provided a range of other, more targeted instruments to help support producers in vulnerable areas, such as in mountainous regions where the costs of production are higher. In 2003, the EC decided on a final date to end the quotas in order to provide EU producers with more flexibility to respond to growing demand, especially on the world market. This end date was reconfirmed in 2008 with a number of measures designed to help achieve a “soft landing” after the quotas ended. The U.S. Dairy Export Council recently released a 334-page detailed report for its members that examines questions such as, “How much more milk will the European Union likely produce,” “Which dairy products will be most affected,” and “Will the EU be more aggressive in exporting dairy products? If so, what is the best strategy for U.S. dairy to remain globally competitive?” To answer these questions, USDEC interviewed dozens of milk processors, producers and industry organizations in the six main EU countries likely to produce the most milk and export the highest level of dairy products following quota reform. Among USDEC’s main find- ings in the report are the following, according to authors Mark O’Keefe and Ross Christieson: Volume 35 April 3, 2015 Number 11 WASHINGTON — This week several cheese companies were among 123 employers in 10 states urging their respec- tive congressional delegations to pass “fast track” or Trade Promotion Authority (TPA) as soon as possible. TPA allows only an up- or-down vote in Congress on final trade agreements with no amendments. Proponents argue that TPA is necessary to keep trade agreements such as the Trans-Pacific Partner- ship (TPP) moving forward while maintaining key provi- sions that benefit the United States’ interests. Opponents have criticized TPA for mak- ing trade agreements less transparent to constituents Cheese companies among those urging passage of TPA and stakeholders. Leprino Foods Co., Saputo Cheese USA Inc., MCT Dairies Inc., Kraft Foods Group Inc., Bel Brands USA, Great Lakes Cheese Co., Sargento Foods Inc. and Schreiber Foods were among the companies who signed letters supporting TPA sent this week to congres- sional representatives of Colo- rado, Connecticut, Delaware, Florida, Georgia, Maryland, New Jersey, South Carolina, Virginia and Wisconsin. Other dairy companies that signed the letters include Southeast Milk Inc., Maryland & Virginia Milk Producers Cooperative Association Inc., Grassland Dairy Products Inc. and Sa- puto Dairy Foods USA LLC. The letters highlighted benefits of trade to each state’s economy and noted that with more than 95 per- cent of the world’s population and 80 percent of its purchas- ing power outside the United States, trade will only become more important. TPA legislation is “criti- cal to the long-term suc- cess” of each state’s econo- my, the companies stressed, calling on their respective congressional delegations to support it. In mid-March, dairy and ag industry representatives testi- fied before the House Agricul- ture Committee in a hearing on the “Importance of Trade to U.S. Agriculture,” which focused on TPA passage. Pete Kappelman, dairy farmer from Twin Rivers, Wisconsin, and chairman of the Inter- national Trade Committee of the National Milk Producers Federation (NMPF), testified to the economic benefits of increased dairy exports. He also noted that Japan and Canada, which have two of the most protected dairy mar- kets of all TPP countries, have pointed to the importance of the United States having TPA in place as talks enter their final stages on agricultural negotiations. “Our negotiators have moved the ball forward on many key issues but in order to ensure that we conclude a high-standard, balanced agreement that delivers net trade benefits for the U.S. dairy industry, we need to have TPA in place,” Kappel- man says. He adds that the TPA leg- islation introduced last year included strong provisions tackling sanitary and phytos- anitary (SPS) measures and addressing the abuse of geo- graphical indications. It also has given U.S. negotiators the direction to prioritize prod- ucts that are subject to signif- icantly higher tariffs in major producing countries, he says. American Farm Bureau Federation President Bob Stallman also testified at the hearing and urged Congress to pass TPA. “The U.S. is on the verge of completing ambitious trade negotiations from Europe to Asia, but we cannot move for- ward unless barriers such as high tariffs and non-scientific standards are addressed,” Stallman says. “We must forge deals that knock down those trade barriers. Getting there means giving the president the Trade Promotion Author- ity necessary to reach those market-opening agreements.” The International Dairy Foods Association (IDFA) has been working with the Trade Benefits America coalition to educate and gain support for TPA as well, and IDFA in early March met with more than 30 House offices to gather sup- port. IDFA notes that an up- dated bipartisan bill to renew Senate, House pass fiscal 2016 budget blueprints A INSIDE Turn to TPA, page 12 a Turn to NASS, page 10 a WASHINGTON — The Sen- ate late last week approved a 2016 budget blueprint closely following a House measure passed earlier last week. Both budget proposals seek to shrink projected federal deficits by more than $5 tril- lion over the coming decade, in part by cutting health care and other benefit programs. Lawmakers began an Eas- ter recess after approving the Turn to BUDGET, page 11 a Turn to QUOTA, page 8 a Scan this code for breaking news and the latest markets! Guest column: ‘The networking nexus.’ For details, see page 4. In Wisconsin cheese ranks above Aaron Rodgers. For details, see page 5. Licensed cheese imports up 39 percent in February. For details, see page 10. Hearing delves into COOL concerns. For details, see page 12.

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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])

    Production of U.S. cheese climbs while butter fallsWASHINGTON — Total U.S. cheese production, excluding cottage cheese, totaled 884.3 million pounds in February, 3.9 percent above February 2014’s 850.9 million pounds, accord-ing 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 10.)

    February cheese production was 9.5 percent below January 2015’s 977.4 million pounds due to the length of the months, but on an average daily basis cheese production was up 0.2 percent in February.

    Italian-type cheese production totaled 394.2 million pounds in February, according to NASS, up 5.4 percent from February 2014’s 374.1 million pounds. Production of Mozzarella, the most-produced cheese type in the United

    EU milk quota ends; global industry prepares for impact BRUSSELS, Belgium — As the European Union’s (EU) milk quota system ended Tuesday, dairy industry groups in both Europe and the United States look at what this will mean for both the short- and long-term future.

    The EU milk quota fi rst was introduced in 1984, which milk pro-duction far outstripped demand, according to the European Commis-sion (EC). The quota system was one of the tools introduced to help overcome these surpluses.

    Subsequent reforms to the EU’s Common Agriculture Policy (CAP) have increased the market orientation of the sector and provided a range of other, more targeted instruments to help support producers in vulnerable areas, such as in mountainous regions where the costs of production are higher.

    In 2003, the EC decided on a fi nal date to end the quotas in order to provide EU producers with more fl exibility to respond to growing demand, especially on the world market. This end date was reconfi rmed in 2008 with a number of measures designed to help achieve a “soft landing” after the quotas ended.

    The U.S. Dairy Export Council recently released a 334-page detailed report for its members that examines questions such as, “How much more milk will the European Union likely produce,” “Which dairy products will be most affected,” and “Will the EU be more aggressive in exporting dairy products? If so, what is the best strategy for U.S. dairy to remain globally competitive?”

    To answer these questions, USDEC interviewed dozens of milk processors, producers and industry organizations in the six main EU countries likely to produce the most milk and export the highest level of dairy products following quota reform. Among USDEC’s main fi nd-ings in the report are the following, according to authors Mark O’Keefe and Ross Christieson:

    Volume 35 April 3, 2015 Number 11

    WASHINGTON — This week several cheese companies were among 123 employers in 10 states urging their respec-tive congressional delegations to pass “fast track” or Trade Promotion Authority (TPA) as soon as possible.

    TPA allows only an up-or-down vote in Congress on fi nal trade agreements with no amendments. Proponents argue that TPA is necessary to keep trade agreements such as the Trans-Pacifi c Partner-ship (TPP) moving forward while maintaining key provi-sions that benefi t the United States’ interests. Opponents have criticized TPA for mak-ing trade agreements less transparent to constituents

    Cheese companies among those urging passage of TPA

    and stakeholders.Leprino Foods Co., Saputo

    Cheese USA Inc., MCT Dairies Inc., Kraft Foods Group Inc., Bel Brands USA, Great Lakes Cheese Co., Sargento Foods Inc. and Schreiber Foods were among the companies who signed letters supporting TPA sent this week to congres-sional representatives of Colo-rado, Connecticut, Delaware, Florida, Georgia, Maryland, New Jersey, South Carolina, Virginia and Wisconsin. Other dairy companies that signed the letters include Southeast Milk Inc., Maryland & Virginia Milk Producers Cooperative Association Inc., Grassland Dairy Products Inc. and Sa-puto Dairy Foods USA LLC.

    The letters highlighted benefi ts of trade to each state’s economy and noted that with more than 95 per-cent of the world’s population and 80 percent of its purchas-ing power outside the United States, trade will only become more important.

    TPA legislation is “criti-cal to the long-term suc-cess” of each state’s econo-my, the companies stressed, calling on their respective congressional delegations to support it.

    In mid-March, dairy and ag industry representatives testi-fi ed before the House Agricul-ture Committee in a hearing on the “Importance of Trade to U.S. Agriculture,” which focused on TPA passage. Pete Kappelman, dairy farmer from Twin Rivers, Wisconsin, and chairman of the Inter-national Trade Committee of the National Milk Producers Federation (NMPF), testifi ed to the economic benefi ts of increased dairy exports. He also noted that Japan and Canada, which have two of the most protected dairy mar-kets of all TPP countries, have pointed to the importance of the United States having TPA in place as talks enter their fi nal stages on agricultural negotiations.

    “Our negotiators have moved the ball forward on many key issues but in order to ensure that we conclude a high-standard, balanced agreement that delivers net trade benefi ts for the U.S. dairy industry, we need to have TPA in place,” Kappel-man says.

    He adds that the TPA leg-islation introduced last year included strong provisions tackling sanitary and phytos-

    anitary (SPS) measures and addressing the abuse of geo-graphical indications. It also has given U.S. negotiators the direction to prioritize prod-ucts that are subject to signif-icantly higher tariffs in major producing countries, he says.

    American Farm Bureau Federation President Bob Stallman also testifi ed at the hearing and urged Congress to pass TPA.

    “The U.S. is on the verge of completing ambitious trade negotiations from Europe to Asia, but we cannot move for-ward unless barriers such as high tariffs and non-scientifi c standards are addressed,” Stallman says. “We must forge deals that knock down those trade barriers. Getting there means giving the president the Trade Promotion Author-ity necessary to reach those market-opening agreements.”

    The International Dairy Foods Association (IDFA) has been working with the Trade Benefi ts America coalition to educate and gain support for TPA as well, and IDFA in early March met with more than 30 House offi ces to gather sup-port. IDFA notes that an up-dated bipartisan bill to renew

    Senate, House pass fi scal 2016 budget blueprints

    A

    INSIDE

    Turn to TPA, page 12 a

    Turn to NASS, page 10 a

    WASHINGTON — The Sen-ate late last week approved a 2016 budget blueprint closely following a House measure passed earlier last week. Both budget proposals seek to shrink projected federal defi cits by more than $5 tril-lion over the coming decade, in part by cutting health care and other benefi t programs.

    Lawmakers began an Eas-ter recess after approving the Turn to BUDGET, page 11 aTurn to QUOTA, page 8 a

    Scan this code for breaking news and the latest markets!

    ✦ Guest column: ‘The networking nexus.’ For details, see page 4.

    ✦ In Wisconsin cheese ranks above Aaron Rodgers. For details, see page 5.

    ✦ Licensed cheese imports up 39 percent in February. For details, see page 10.

    ✦ Hearing delves into COOL concerns. For details, see page 12.

    http://www.facebook.com/cheesemarketnews

  • © 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® — April 3, 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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    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 608/831-1004

    WEBSITE: www.cheesemarketnews.com

    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

    APR10.7812.9216.8715.7217.5924.31

    MAY 9.8413.3816.5215.2318.5222.57

    JUN 9.9713.6219.1115.6318.0221.36

    JUL 9.9713.7421.3916.6817.3821.60

    AUG11.2015.1821.6717.7317.9122.25

    SEP12.1116.2619.0719.0018.1424.60

    OCT12.8216.9418.0321.02 18.22 23.82

    NOV14.0815.4419.0720.8318.8321.94

    DEC14.9813.8318.7718.6618.9517.82

    (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

    10,64794,742

    +108+547

    18,48183,355

    +1,241-1,261

    -7,834+11,387

    +13 -1

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

    Monday Tuesday Wednesday Thursday Friday

    Chicago Mercantile Exchange

    March 30 March 31 April 1 April 2 April 3

    Weekly average (March 30-April 2): Barrels: $1.5888(+.0738); 40-lb. Blocks: $1.5763(+.0438).Weekly ave. one year ago (March 31-April 4, 2014): Barrels: $2.2410; 40-lb. Blocks: $2.3855.

    Cheese BarrelsPriceChange

    Cheese 40-lb. blockPriceChange

    Grade A NDMPriceChange

    Weekly average (March 30-April 2): Grade A: $0.9756(+.0006).

    Grade AA ButterPriceChange

    Class II Cream (Major Northeast Cities): $1.8694(-.1466)–$2.0903(-.0937).Weekly average (March 30-April 2): Grade AA: $1.7594(+.0599).

    $1.7600 -2 1/2

    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 April 3, 2015

    $1.6000 +3 1/2

    $1.5800 +1 1/2

    $0.9750NC

    $1.7850 +3 1/4

    $1.5950 NC

    $1.5800 NC

    $1.7400 -2

    $0.9775 +1/4

    Markets Closed

    Markets Closed

    Markets Closed

    $1.5950 -1/2

    $1.5800 NC

    $0.9750NC

    $1.7525 NC

    $0.9750 NC

    $1.5650 +2

    $1.5650 +2 1/2

    Dry Products* April 3, 2015

    DRY BUTTERMILK(FOB)Central & East: $.8900-$1.0200.(FOB) West: $.8500-$1.0100(+4 1/2); mostly $.8800-$.9000.

    EDIBLE LACTOSE(FOB)Central and West: $.1700(-1)-$.3725; mostly $.2000-$.2750.

    NONFAT DRY MILKCentral & East: low/medium heat $.9450(-2 1/2)-$1.1000(-2 1/4); mostly $.9900(-1 1/2)-$1.0750(-1). high heat $1.0900-$1.3000(+5).West: low/medium heat $.9025(-2 1/4)-$1.1100(-2 1/2); mostly $.9450(-2)-$1.0350(-2). high heat $1.0750(-3)-$1.2500(+1).Calif. manufacturing plants: extra grade/grade A weighted ave. $.9723(-.0126) based on 20,950,017 lbs.

    WHOLE MILK POWDER (National): $1.1000(-2)-$1.5400(+19).

    WHEY POWDERCentral: nonhygroscopic $.3600(+1)-$.5400; mostly $.4000-$.4650.West: nonhygroscopic $.3800-$.5050; mostly $.4200-$.4650.(FOB) Northeast: extra grade/grade A $.4300-$.5050(-1).

    ANIMAL FEED WHEY (Central): Whey spray milk replacer $.2500-$.3800(-2).

    WHEY PROTEIN CONCENTRATE (34 percent): $.8400(-1)-$1.1500(-1); mostly $.8800-$1.0500(-1 1/2).

    CASEIN: Rennet $3.3500(-30)-$3.8000(-20); Acid $3.5000(-20)-$4.1000(-30).

    *Source: USDA’s Dairy Market News

    ----1.5931.5971.6131.6821.7401.7861.7951.8001.7951.7581.7551.7431.7341.7251.725

    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.

    MAR15APR15MAY15JUN15JUL15AUG15SEP15OCT15NOV15DEC15JAN16FEB16MAR16APR16MAY16JUN16

    CHEESE FUTURES for the week ending April 2, 2015 (Listings for each day by month, settling price and open interest)

    Fri., March 27 Mon., March 30 Tues., March 31 Wed., April 1 Thurs., April 2*

    1.5731.6001.6331.6551.7121.7721.7981.8121.8131.8021.7581.7501.7431.7341.7251.725

    4,7294,6584,3284,0903,1822,9142,9432,5092,6232,506

    181144161

    998283

    357/35,262

    ----4,6724,3744,1493,1812,9182,9432,5162,6272,509

    181146161

    998283

    110/30,707

    4,7534,6534,3274,1023,1852,9112,9402,5092,6202,504

    181144161

    998283

    1.5731.5951.6241.6391.6901.7521.7801.8021.8071.7991.7581.7501.7401.7341.7251.725

    4,7524,6434,3284,1023,1852,9102,9392,5092,6202,504

    181144161

    998283

    163/35,242

    1.5751.5881.6061.626 1.6851.7401.7861.8001.8001.7951.7581.7501.7431.7341.7251.725

    4,4684,6704,3654,1443,1782,9182,9432,5152,6292,509

    181144161

    998283

    596/35,155

    1.5731.5901.5951.6161.6701.7291.7621.7851.7901.7811.7581.7501.7401.7341.7251.725

    220/35,254

    Total Contracts Traded/Open Interest

    MAR15APR15MAY15JUN15JUL15AUG15SEP15OCT15NOV15DEC15JAN16FEB16MAR16APR16

    DRY WHEY FUTURES* for the week ended April 2, 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., March 27 Mon., March 30 Tues., March 31 Wed., April 1 Thurs., April 2

    29/6,319

    47.6845.2542.5041.5040.3839.5339.8340.0039.0339.5340.2840.7841.0041.00

    825768782782608534541503432405

    31221919

    46/6,304

    47.7345.4842.6841.4840.7538.5039.5039.5038.7039.0840.0040.7841.0041.00

    825773795787608534541503432405

    31221919

    2/6,319

    ----46.1044.0042.0040.5039.5340.0340.0039.5039.7540.5041.0041.0041.00

    ----764792796608534541503432413

    27211919

    32/5,512

    48.2445.1342.2040.7540.3839.5340.0340.0039.5039.7540.5040.7841.0041.00

    823764792795608534541503432405

    31221919

    64/6,331

    47.7345.4842.7541.4840.7538.5039.5039.5038.7039.0840.0040.7841.0041.00

    825773795787608534541503432405

    31221919

  • © 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])

    April 3, 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

    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: 3/14/15

    $1.5636 13,885,999

    $1.6104$1.5345

    9,572,40034.93

    $1.7209 2,618,921

    *$1.0717*15,439,492

    $0.47597,353,236

    *$1.5746 *13,789,766

    $1.6409$1.5625

    11,056,29834.89

    $1.7082 *4,628,483

    *$1.0076*20,181,748

    $0.4668*9,844,642

    3/21/15 3/7/15

    $1.5584 11,337,722

    $1.6052$1.5296

    10,397,99434.93

    $1.68134,705,509

    *$1.0443*17,086,269

    $0.50455,938,618

    $1.5811 11,472,318

    $1.6590$1.5819

    9,420,86034.98

    $1.6719 3,140,113

    $0.991829,102,705

    $0.49306,572,906

    3/28/15

    Class 4aClass 4b

    Butterfat$ 1.7932/lb.$ 1.7932/lb.

    SNF$ 0.8216/lb.$ 0.8846/lb.

    Equivalent $ 13.42/cwt.$ 13.97/cwt.

    California Minimum PricesReleased April 1, 2015

    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 PricesMarch 2015

    $ 15.56/cwt.$ 9.43/cwt.

    $ 13.80/cwt.$ 7.61/cwt.

    $ 14.50/cwt.$ 1.8514/lb.

    $ 1.8444/lb.$ 0.8454/lb.$ 2.4875/lb.$ 0.2918/lb.$ 0.00079/1,000 scc

    $ 1.6945/lb.$ 1.0217/lb.$ 1.5750/lb.$ 0.4824/lb.

    February 2015

    $ 15.46/cwt.$ 9.39/cwt.

    $ 13.82/cwt.$ 7.69/cwt.

    $ 14.48/cwt.$ 1.8366/lb.

    $ 1.8296/lb.$ 0.8544/lb.$ 2.4051/lb.$ 0.3273/lb.$ 0.00077/1,000 scc

    $ 1.6823/lb.$ 1.0308/lb.$ 1.5446/lb.$ 0.5169/lb.

    International Dairy Markets April 3, 2015

    Oceania Butter: 82 percent butterfat $3,200(-300)-$3,750(-250). Cheddar Cheese: 39 percent maximum moisture $3,300-$3,800.Skim Milk Powder: 1.25 percent butterfat $2,500(-100)-$2,900(-275).Whole Milk Powder: 26 percent butterfat $2,450(-400)-$3,100(-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 Europe Butter: 82 percent butterfat $3,250(-150)-$3,600(-50).Butteroil: 99 percent butterfat $3,875-$4,375(-25).Skim Milk Powder: 1.25 percent butterfat $2,025(-125)-$2,400(-50).Whole Milk Powder: 26 percent butterfat $2,800(-50)-$3,000(-200).Whey Powder: Nonhygroscopic $950-$1,150.

    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*

    MAR15APR15MAY15JUN15JUL15AUG15SEP15OCT15NOV15DEC15JUL16

    MAR15APR15MAY15JUN 15JUL15AUG15SEP15OCT15NOV15DEC15JUL16

    Total Contracts Traded/Open Interest

    Fri., March 27 Mon., March 30 Tues., March 31 Wed., April 1 Thurs., April 2

    Total Contracts Traded/Open Interest

    MAR15APR15MAY15JUN15JUL15AUG15SEP15OCT15NOV15DEC15JAN16FEB16MAR16APR15JUL16

    Class III Milk*

    Total Contracts Traded/Open Interest

    Class IV Milk*

    MAR15APR15MAY15JUN15JUL15AUG15SEP15OCT15NOV15DEC15JUL16

    CME FUTURES for the week ended April 2, 2015

    Fri., March 27 Mon., March 30 Tues., March 31 Wed., April 1 Thurs., April 2

    Fri., March 27 Mon., March 30 Tues., March 31 Wed., April 1 Thurs., April 2

    Cash-Settled Butter*

    5,6755,6505,9505,3093,9213,5023,2602,8882,7772,532

    456277271133103

    15.5015.6515.8816.0016.5317.0617.3417.4717.4517.3517.0016.9516.7716.5516.56

    13.9313.8714.3014.7214.9715.3115.7915.9516.1316.2516.65

    389391471407237264166165201216

    16

    103.50100.50101.85105.05108.28112.00115.00118.00118.80119.00125.50

    666814803744617549438368404334

    57

    170.00175.03183.88185.50185.25186.00187.00187.75187.50187.50181.90

    905871914828576582521615613358

    8

    1,970/42,945

    14/2,994

    171/5,876

    132/6,806

    5,6835,6655,9255,3023,9133,5103,2622,9022,7502,538

    424264258122

    99

    15.5115.5315.4515.5716.0916.6417.0017.1817.2517.1816.9016.8516.7616.4916.40

    13.9313.8714.2514.6815.2915.4315.7916.2516.3016.2816.85

    389391477413241262166165201216

    16

    44/3,000

    103.50102.98103.50107.98113.00116.10119.75121.50122.00122.50128.25

    666804794755612530438353386330

    39

    143/5,746

    170.25174.00178.50180.75182.75182.10184.45185.75186.25186.20180.00

    905873901819569575517613592339

    7

    141/6,725

    462/37,588

    ----5,5806,0095,3343,9453,5463,2772,9302,8012,573

    486330279143109

    ----13.8714.2014.7214.9715.2715.7315.8416.0816.0016.54

    1/2,608

    ----100.60101.83105.75108.05111.00114.88117.50118.93119.05124.50

    35/5,259

    ----816797741598557445376409351

    68

    ----173.15179.00180.03181.53183.50183.75185.50186.00186.50181.90

    75/6,056

    ----880980838587583558631617358

    8

    5,6735,6635,9915,3283,9133,5113,2672,9002,7502,537

    438265266130100

    15.5215.5815.7715.8416.3916.8717.1517.3117.3317.2417.0116.9516.8316.5516.53

    13.9313.8714.2414.6814.9715.3115.7916.2516.3016.2816.75

    389391471408237264166165201216

    16

    20/2,987

    103.50102.50102.05105.80109.00112.58115.75119.00120.00121.48125.50

    666814805767610550436359388330

    57

    314/5,843

    170.00174.00179.25182.00183.00182.58184.45185.75186.25186.20180.00

    905871904821572578519613592339

    7

    27/6,736

    ----15.5915.5715.5616.2016.7317.0917.2217.2317.2516.8616.9016.7516.5516.56

    ----391471407237264166165201217

    16

    5,1165,5785,9935,3193,9353,5343,2732,9182,7902,570

    485322276141108

    15.5615.5315.6215.6616.2416.7117.1417.3417.3217.2616.9016.9016.7716.5516.56

    2,044/42,604

    13.8013.8714.2014.7214.9715.2715.7315.8416.0816.0016.54

    540391471407237264166165201217

    16

    4/3,148

    102.17100.50101.83105.00108.00111.00114.50117.00118.50118.53124.50

    777815797739598557445376409351

    68

    261/6,032

    169.45175.03180.60182.00183.25185.00184.03185.50186.00186.50181.90

    897864963829576583553631617358

    8

    161/6,895

    Fri., March 27 Mon., March 30 Tues., March 31 Wed., April 1 Thurs., April 2

    676/42,965 883/42,845

    MARKET INDICATORS

    http://www.devilletechnologies.com/

  • © 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® — April 3, 2015

    Perspective:WCMA

    The networking nexusWith record pre-registration for the

    Wisconsin Cheese Industry Conference April 22-23, attendees will have plenty of colleagues to talk with. Here are some conversation starters:• Dairy is job growth

    Interesting new data from UW Exten-sion – Center for Community & Econom-ic Development. Wisconsin employment growth in food manufacturing passed growth in total manufacturing jobs in 2001 and never looked back. Since 1990, food industry hires in the Dairy State are up 4 percent while manufacturing jobs are down 14 percent. Wisconsin is head to head with California for the national lead in most dairy manufactur-ing jobs. Wisconsin is fi fth in the nation for food manufacturing jobs overall.

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

    WCMA UPDATE

    Interestingly, this spring Wisconsin will dip under 10,000 licensed dairy farms.• Taking dairy to IFT

    For the fi rst time, the State of Wis-consin will exhibit at the Institute of Food Technologists (IFT) Food Expo and dairy companies will be the fea-tured invited guests. Coming in April, Wisconsin’s Economic Development Corp. will ask dairy ingredient, whey and cheese processors to consider taking “showcase” space in the new 20x30 state-sponsored booth for the July 11-14 Expo. That’s free exhibit time at IFT. The state also is open to displaying Wisconsin companies in the dairy supply chain, meaning ingredient and equipment suppliers also will be considered for the showcase.

    • FARM Training in MayAnimal welfare programs are front

    of mind with dairy processors across the nation and the topic will kick-off the Wisconsin Cheese Industry Confer-ence. WCMA is working directly with the National Milk Producers Federation (NMPF) to bring the National Dairy FARM (Farmers Assuring Responsible Management) program to every WCMA member. In May, WCMA joins NMPF in launching three workshops to train dairy fi eldmen and veterinarians to be-come FARM program evaluators. Dates are now set as May 11 in Madison, May 14 in Seymour and May 20 in Marshfi eld. In addition, a two-day intensive Train the Trainer program is set for May 12-13 in Madison. Look for more details soon from WCMA.• Winning wheels

    It may be a fi rst: a wheel Swiss won WCMA’s Championship Cheese Contest two years in a row. A Swiss Emmentaler took the World Championship in 2014 and Guggisberg Cheese made a near-perfect 200-lb Swiss wheel to become U.S. Champion last month. This asso-ciation’s annual contest dates back to 1891, and at some time, decades ago, perhaps two wheel Swiss won back-to-back years — but not in the last 50 years. Spectacular growth for the U.S. Championship Cheese Contest — a record 1,892 entries this year, and a strong debut for yogurts (85 entries) — speaks to the health and creativity of the industry. We’re already excited for next year’s World Championship Cheese Contest.

    • EU Milk GrowthApril begins a new era for the Euro-

    pean Union — the end of milk quotas initiated in 1984. Farm organizations across Europe are bullish on the new free market environment, but none more than Ireland. WCMA fi rst heard predictions of 50 percent milk growth in coming years during our Cheese Technology Tour in Ireland in 2012 and the leaders there have held to that claim even this week. That growth is the equivalent of adding a new Washington state milk production to the world supply. A new paper from U.S. Dairy Export Council predicts overall EU milk production will rise 11 percent by 2020, the equivalent of a new Wisconsin plus a Washington state milk production. The silver lining? USDEC concludes that emerging market demand will absorb these new milk volumes from Europe and leave additional demand for U.S. dairy exporters.• And more

    New water restrictions announced in California, a new milk marketing order for the nation’s largest dairy state, the merger of Heinz and Kraft Foods — plenty of topics make the Wisconsin Cheese Industry Confer-ence a vital opportunity to gather and network with your dairy industry colleagues from across the nation. We’ll see you in Madison. CMN

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

    NEWS/BUSINESS

    AUCKLAND, New Zealand — Aver-age prices for commodities saw further declines Wednesday at the latest auction on Global Dairy Trade (GDT), Fonterra’s internet-based sales platform.

    The GDT price index was down 10.8 percent, and average prices for all com-modities were lower. The average prices achieved across all contracts and contract periods for each commodity, and percent drop from last month, are as follows:

    • Anhydrous milkfat: US$3,663 per metric ton FAS ($1.6615 per pound), down 5.3 percent.

    • Butter: US$3,259 per metric ton FAS ($1.4783 per pound), down 7.6 percent.

    • Buttermilk powder: US$2,130 per

    Further declines seen at latest GDT auctionmetric ton FAS ($0.9662 per pound), down 25.1 percent.

    • Cheddar: US$2,787 per metric ton FAS ($1.2642 per pound), down 10.5 percent.

    • Rennet casein: US$6,980 per metric ton FAS ($3.1661 per pound), down 8.0 percent.

    • Skim milk powder: US$2,467 per metric ton FAS ($1.1190 per pound), down 9.9 percent.

    •Whole milk powder: US$2,538 per metric ton FAS ($1.1512 per pound), down 13.3 percent.

    The next trading event will be held April 15. For more information, visit www.globaldairytrade.info. CMN

    WASHINGTON — While national advertising volumes for conventional dairy products decreased 6 percent last week over the prior week, advertising numbers for butter were 43 percent higher heading into Easter/Passover, says USDA’s Agricultural Marketing Ser-vice (AMS) in its latest weekly National Dairy Retail Report released March 27.

    AMS says last week national con-ventional varieties of natural cheese in 8-ounce blocks had a weighted average advertised price of $2.47, up from $2.43 one week ago and $2.44 one year ago.

    AMS says 1-pound cheese blocks last week had a weighted average advertised price of $4.03, down from $4.12 one week earlier but up from $3.73 one year

    Butter ads rise ahead of Easter/Passoverearlier, while 2-pound cheese blocks had a weighted average advertised price of $7.25, down from $7.44 one week earlier and $7.60 one year ago.

    Natural varieties of 8-ounce cheese shreds last week had a weighted aver-age advertised price of $2.42, down from $2.44 one week earlier and one year earlier, AMS says, while 1-pound cheese shreds had a weighted average advertised price of $3.92, down from $3.94 one week earlier and $4.51 one year earlier.

    Meanwhile, national conventional butter in 1-pound packs last week had a weighted average advertised price of $2.69, down from $3.03 one week earlier and $2.74 one year ago, AMS says. CMN

    CHARLESTON, W.Va. — West Virginia Gov. Earl Ray Tomblin this week vetoed legislation that would have allowed con-sumers to obtain raw milk through herd shares or arrangements under which they become part owners of a dairy cow.

    The bill, SB 30, was introduced in January by Sen. Daniel Hall, R-Wyoming, and passed by the state House and Sen-ate last month. Tomblin vetoed the bill Wednesday, saying it posed a “serious

    National Milk Producers Federation lauds West Virginia governor for vetoing raw milk billrisk to public health,” adding that raw milk “is particularly dangerous to chil-dren, pregnant women and persons with compromised immunity.”

    Currently, no form of raw milk sales are permitted in West Virginia.

    The National Milk Producers Federa-tion (NMPF) thanked Tomblin for vetoing the legislation. NMPF, along with the In-ternational Dairy Foods Association, had urged him in a joint letter to veto the bill.

    “The link between consuming raw milk and foodborne illness has been well-documented, with evidence span-ning nearly 100 years,” says Jim Mulhern, president and CEO, NMPF. “At the same time, no claims of additional health benefi ts from drinking raw milk over pas-teurized milk have been substantiated.”

    Mulhern says NMPF and the nation’s dairy farmers appreciate that Tomblin

    sided with public health experts over raw milk advocates in rejecting SB 30.

    “Endangering public health is no way for any state to operate, and we appreci-ate Governor Tomblin heeding that mes-sage,” Mulhern adds. “At least six other state legislatures have bills pending that would ease raw milk sales to consumers. We urge them to follow West Virginia’s lead and reject these measures.” CMN

  • © 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])

    April 3, 2015 — CHEESE MARKET NEWS® 5

    NEWS/BUSINESS

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    SACRAMENTO — California Gov. Jerry Brown this week for the fi rst time in the state’s history directed the State Water Resources Control Board to implement mandatory water restrictions in cities and towns across California to reduce water usage by 25 percent.

    Following the lowest snowpack ever recorded and with no end to the drought in sight, Brown says the directive will save water, increase enforcement to prevent wasteful water use, streamline the state’s drought response and invest in new technologies that will make California more drought resilient.

    “Today we stand on dry grass where there should be fi ve feet of snow,” Brown said when announcing the actions on Wednesday. “This historic drought demands unprecedented action. There-fore, I’m issuing an executive order mandating substantial water reductions across our state. As Californians, we must pull together and save water in

    California implements fi rst mandatory water restrictions in response to ongoing droughtevery way possible.”

    The following actions are included in the executive order issued this week:

    • Save water: The mandatory water reductions of 25 percent amount savings of approximately 1.5 million acre-feet of water over the next nine months, or nearly as much as is currently in Lake Oroville in Butte County, California, Brown says.

    The order also will replace 50 mil-lion square feet of lawns throughout the state with drought tolerant landscaping in partnership with local governments; direct the creation of a temporary, statewide consumer rebate program to replace old appliances with more water and energy-effi cient models; require campuses, golf courses, cemeteries and other large landscapes to make signifi -cant cuts in water use; and prohibit new homes and developments from irrigat-ing with potable water unless water-effi cient drip irrigation systems are

    used, and ban watering of ornamental grass on public street medians.

    • Increase enforcement: Brown’s order calls on local water agencies to ad-just their rate structures to implement conservation pricing, recognized as an effective way to realize water reductions and discourage water waste, he says.

    In addition, agricultural water uses — which Brown notes have borne much of the brunt of the drought to date, with hundreds of thousands of fallowed acres, signifi cantly reduced water allocations and thousands of farm workers laid off — will be required to report more water use information to state regulators, increasing the state’s ability to enforce against illegal diver-sions and waste and unreasonable use of water under the order.

    The action also strengthens stan-dards for Agricultural Water Manage-ment Plans submitted by large agricul-ture water districts and requires small agriculture water districts to develop similar plans. These plans will help en-sure that agricultural communities are prepared in case the drought extends into 2016, Brown says.

    • Streamline government response: The order prioritizes state review and

    decision making of water infrastructure projects and requires state agencies to report to the governor’s offi ce on any application pending for more than 90 days. It also streamlines permitting and review of emergency drought sa-linity barriers, necessary to keep fresh water supplies in upstream reservoirs for human use and habitat protection for endangered and threatened species.

    The order also simplifi es the review and approval process for voluntary water transfers and emergency drinking water projects and directs state departments to provide temporary relocation as-sistance to families who need to move from homes where domestic wells have run dry to housing with running water.

    • Invest in new technologies: The order helps to make California more drought resilient by incentivizing promising new technology that will make California more water effi cient through a new program administered by the California Energy Commission.

    The executive order issued this week follows emergency legislation signed by Brown last week to fast-track more than $1 million in fund-ing for drought relief and critical water infrastructure projects. CMN

    EVANSTON, Ill. — The Irish Dairy Board has announced its new global corporate identity: Ornua — The Home of Irish Dairy. Ornua owns the Kerrygold brand of butter, cheese and milk powders and currently supplies dairy branded products and ingredients to more than 110 markets around the world.

    The company notes that over the past fi ve years, it has been transforming its business in preparation for the removal of milk quotas and a new era for Irish dairying, and this new global identity marks its next step.

    The name Ornua links to Irish heri-tage as well as brand heritage through the Kerrygold marque, and it is easy to pronounce — an important consider-ation when operating in more than 110 countries, the company says.

    “Our business has been steadily building a global infrastructure to ready itself for the opportunities post quota will bring,” says Kevin Lane, Ornua CEO. “We have invested in our people, our brands, new products, in our facilities all over the world, and in the excellence and sustainability of all aspects of our business. A business with such reinvigorated ambition needs an identity that is fi t for a very bright

    Irish Dairy Board changes identity to Ornuafuture. We now complete our prepara-tion by unveiling an identity which not only refl ects our position as a modern customer and consumer-facing busi-ness, but one which acknowledges and celebrates our proud dairy heritage.”

    The trading name Irish Dairy Board Cooperative Ltd. has changed to Ornua Cooperative Ltd. The change relates solely to the corporate identity. The corporate structure and portfolio of consumer brands, including Kerrygold, Dubliner, Londoner, Shannongold and MU will remain unaffected.

    Recent Ornua investments include:• A new global home for Kerrygold

    Production & Butter Packing in Mitch-elstown, County Cork, Ireland, to begin production in Spring 2016;

    • The June 2014 opening of a new facility at Thiel Cheese & Ingredients in Hilbert, Wisconsin, that marks the completion of an $80 million investment program in the Ornua Ingredients North America business;

    • The acquisition of a Spanish cheese business and the formation of Ornua Espana; and

    • Current construction of a cheese manufacturing facility in Riyadh, Saudi Arabia, to service the Middle East North Africa market. CMN

    RALEIGH, N.C. — Cheeseheads may love their Green Bay Packers, but ac-cording to a recent poll, they love one thing even more — cheese.

    Public Policy Polling last month surveyed 1,071 registered Wisconsin voters, interviewing them via phone and online about cheese, beer and sports. The results showed 79 percent of voters in the state have a favorable opinion of Green Bay quarterback Aaron Rodgers, while only 6 percent have a negative one. The only thing

    Cheese ranks above Aaron Rodgers in pollin Wisconsin that ranked higher in the poll was cheese, which garnered a favorable opinion among 80 percent of the voters surveyed vs. 5 percent who had a negative opinion.

    Beer also was popular, with a 65/24 favorability rating, but it fell well behind cheese. When asked which of the two they liked better, 66 percent of voters picked cheese and only 23 percent said beer.

    To see the full results, visit www.publicpolicypolling.com. CMN

    http://www.johnsonindint.com/

  • © 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® — April 3, 2015

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    Inc. (CFR), Marshfi eld, Wisconsin, has announced Saagar Vijayaraga-van is its new technical director. Vijayaragavan has a Ph.D. in chemi-cal engineering from Michigan Technological University. He also has published papers on downstream processing and bioseparations. At CFR, Vijayaragavan is the technical lead on designing membrane system, continuous improvement models and membrane cleaning and plays an im-portant role in technical development and growth.

    Coveris, Chicago, has appointed Glen Jensen to the position of pro-gram director-commercial excellence, Analytics. Jensen will focus on the implementation of commercial analyt-ics and sales force effectiveness tools globally across Coveris. A member of the Coveris team since 2008, Jensen will report to Chris Wrobel, vice presi-dent of global strategy and commercial excellence, and will be based in the company’s Chicago office. Jensen previously served as the operations fi nancial analysis director for Coveris’ North American Food & Consumer Products Business unit and in various FP&A roles.

    Dairyfood USA Inc., Blue Mounds, Wisconsin, has announced the appoint-ment of Kristin J. Kale to the position of director of product development. Kale joins the company after eight years as a food scientist with Kraft Foods, including fi ve years in Kraft’s cheese and dairy division. In her new position at Dairyfood USA, Kale will facilitate building brands and creating new products.

    Danone, Paris, has appointed Lorna Davis as chief manifesto cata-lyst leading “Danone 2020,” a business transformation program designed for a sustainable, collaborative and com-munity-engaging future. Davis will join the executive committee June 1. Pas-cal De Petrini will join the executive committee on June 15 as executive vice president, strategic resource cycles. He will lead the strategic resource cycles team that will strengthen Danone’s ability to protect and receive the best value from its essential resources (milk, water and plastics). He also will manage global sourcing organizations.

    Fonterra Co-operative Group Ltd., Auckland, New Zealand, Chief Infor-mation Offi cer Carl Moore resigned.

    Teagasc, Carlow, Ireland, recently appointed Mark Fenelon as head of food research. Fenelon provides lead-ership for the Teagasc food research program, which covers areas of food safety, food bioscience, food chemistry and technology, and food industry devel-opment. Fenelon is based in Moorepark, Ireland, and is responsible for manage-ment of the Teagasc Ashtown Food Re-search Centre. He also leads Teagasc’s research input in the Dairy Processing Technology Centre. In addition, Fenelon is involved in the development of Moore-park Technology Ltd., a joint venture pilot plant offering facilities and ser-vices to companies in the food industry to scale up research and new product testing. He will expand Teagasc’s Food Research Alliance with the University College Cork, and close collaborations with other Irish and international universities, institutes of technology and research institutions. CMN

    PEOPLE NEWS/BUSINESS

    MANHATTAN, Kan. — Fadi Ara-mouni, Kansas State University (KSU) professor of food processing and food product development, says a new partnership to improve food safety and better track foodborne illness will lead to better intervention strategies.

    “Despite all of the efforts being utilized to reduce foodborne illness — the grants, the research, the extension work and the education — we still have a high number of people who get sick and even die from foodborne illnesses, so it’s still a big issue we have to deal with,” Aramouni says.

    According to KSU, the government is taking a new approach to foodborne illness by better tracking and analyz-ing the outbreak data to determine which foods are responsible for ill-ness related to four major foodborne bacteria.

    The newly formed Interagency Food Safety Analytics Collaboration (IFSAC) — which is a partnership of the FDA, the Centers for Disease Control and Prevention (CDC) and the USDA — conducted the research.

    KSU professor says new tracking strategy will lead to better food safety intervention

    Among the fi ndings:• Nearly 75 percent of Campylo-

    bacter illnesses were attributed to dairy. Most of the dairy outbreaks used in the analysis were related to raw milk or cheese produced from raw milk.

    • More than 80 percent of Listeria illnesses were attributed to fruit and dairy.

    “Tracking foodborne illness will help develop and implement food safety systems that address these is-sues,” Aramouni says. “For example, if they fi nd out there are more outbreaks due to seeded vegetables with Sal-monella, maybe we have to develop special intervention strategies for those. Then we will have data to see whether our intervention strategies have worked or not.”

    Estimates from the CDC show these four pathogens cause 1.9 mil-lion cases of foodborne illness in the United States each year.

    For more information, visit www.newswise.com/institutions/newsroom/65/. CMN

    MARSHFIELD, Wis. — Nelson-Jameson Inc. has recently expanded the warehouse at its Marshfi eld, Wisconsin, headquarters.

    Ground was broken in October 2014 on a 10,000-square-foot warehouse ad-dition. The expansion is connected to the existing warehouse and includes six loading docks, two offi ces and 550 pallet positions. The addition brings the total warehouse space in Marshfi eld to more than 2.2 million cubic feet.

    Nelson-Jameson Inc. completes expansion“This additional space will greatly

    enhance our effi ciency in our Marshfi eld location,” says Jerry Lippert, president, Nelson-Jameson Inc.

    The company has additional ware-house space at branch locations in California, Idaho, Pennsylvania and Texas.

    Nelson-Jameson Inc. has been an integrated supplier for the food indus-try since 1947. For more information, visit www.nelsonjameson.com. CMN

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    April 3, 2015 — CHEESE MARKET NEWS® 7

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    GERMANTOWN, Wis. — Gehl Foods, a Germantown, Wisconsin-based maker of ready-to-serve dairy products recently announced that it has been acquired by Wind Point Partners, an investment fi rm known for unlocking growth potential in mid-size companies. Financial de-tails were not disclosed. Gehl Foods, a producer of aseptic dairy products, reported sales of nearly $250 million last year.

    Katherine Gehl, who returned to the company full time in 2007 and succeeded her father and brother as president and CEO in 2011, is handing over management of the enterprise to a new leader. Food industry veteran Eric Beringause, previously CEO of Sturm

    Wind Point Partners acquires Gehl Foods of Wisconsin; Eric Beringause named new CEOFoods, also in Wisconsin, will be the new CEO, effective immediately. Gehl will continue as a member of the board of directors.

    Gehl notes that Wind Point’s interest in the family-owned business was the result of impressive growth under the family’s leadership and a transforma-tion in operations and marketing that has set the stage for future growth.

    Since 2007, the food company has grown by every key measure, she notes. Sales increased almost 80 percent, and the company added more than 100 jobs. Investments in new technologies exceeded $100 million, and both prod-uct innovation and the new business

    pipeline have reached all-time highs. Gehl Foods also is well into its tran-

    sition to a world class manufacturing culture, she adds

    “Wind Point’s investment in Gehl Foods refl ects our belief in the com-pany’s continued growth potential following the outstanding track record and signifi cant investments in technol-ogy and people under Katherine Gehl’s leadership,” says David Stott, principal at Wind Point Partners.

    Gehl adds that with its competitive-ness substantially improved, Gehl Foods has tremendous prospects.

    “The move will allow Gehl Foods to respond even more effectively to

    customer needs and to strengthen its position in national markets,” she says.

    New CEO Beringause says that be-yond the fi nancial and operating appeal Gehl Foods offers, there is substantial alignment on non-fi nancial attributes.

    “Wind Point is a big believer in safety and quality first, transpar-ency and individual performance,” Beringause says. “Those are assets that Gehl Foods has in ample sup-ply, and they are ideal platforms for growth. The Gehl family has done a fantastic job positioning Gehl Foods for continued success. I am excited about the opportunity to lead the company into its next phase of growth.” CMN

    Sartori contributes $43,500 donation to Make-A-Wish PLYMOUTH, Wis. — Sartori Co. has partnered with Green Bay Packers kicker Mason Crosby and the Packers Radio Network for the fourth time in support of the Make-A-Wish Foundation of Wisconsin.

    For every fi eld goal Crosby converted during the 2014 season, Sartori donated $1,000 to $1,500 to Make-A-Wish Wis-consin. Based on this season’s results, the contribution totaled $43,500, and more than $145,000 in total over the past few years.

    “We’re thankful to be in a position where we can support Make-A-Wish Wisconsin,” says Jim Sartori, third generation owner and CEO. “Make-A-Wish and the supporters of this organization help to make a child’s dream possible. If there is one thing we can do for these children, it’s to provide them a bit of joy.” CMN

    WDPA Golf Outing to be held May 14MADISON, Wis. — The 2015 Wisconsin Dairy Products Association’s Golf Outing scramble will be May 14 at Sentry World Golf Course in Stevens Point, Wisconsin.

    The outing will feature door prizes, including hotel packages. The golf package includes 18 holes of golf, power golf carts, lunch, dinner, cheese reception, refreshments and numerous prizes.

    The schedule of events is as follows:8:45 a.m. Registration10:00 a.m. Shotgun Start12:00 p.m. Lunch3:00 p.m. Social Hour4:00 p.m. Dinner and AwardsThe registration deadline is May 1.

    For more information, visit www.wdpa.net, or call 608.836.3336. CMN

    EVENTS

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    8 CHEESE MARKET NEWS® — April 3, 2015

    For more information please visit www.relco.net

    NEWS/BUSINESS

    • The EU will produce signifi cantly more milk, mainly from Ireland, France, the Netherlands, Denmark, Germany and Poland. These are expected to account for 76 percent of the extra milk. Total milk production in the EU is expected to grow by 11 percent, or 15.4 million metric tons more produced in 2020 than in 2013.

    • Much of this new milk will be turned into exportable commodities, led by cheese. USDEC says the most-likely scenario projects that by 2020, cheese production will increase by 660,000 metric tons across the six major EU dairy countries. USDEC projects there will be 303,000 metric tons more milk powder and 218,000 metric tons more cheese exported in 2020 than in 2013.

    • EU dairy companies will invest bil-lions of dollars in processing capacity. USDEC notes that already, investments totaling more than $2.7 billion have been made in the EU dairy manufac-turing and processing facilities. Half of this amount is in Germany and the Netherlands.

    • The big EU exporters will be-come even bigger U.S. competitors. USDEC says the EU already exports more cheese, whole milk powder and butter than the United States, and involvement in exports by several companies will become even more pronounced with the end of quotas. For example, Netherlands-based FrieslandCampina plans to export much of the increase in post-quota milk to countries outside the EU. Ger-many’s DMK generated 44.5 percent of its sales outside of Germany in 2013 and drove the internationalization

    of its business further with a new, internationally focused distribution organization. Meanwhile, Denmark-based Arla Foods supplies 70 percent of its production to EU markets and 30 percent to outside markets, with a goal to develop a 50-50 volume split, USDEC reports.

    • Smaller EU companies will try to compete with the United States on price. This, coupled with an increasingly com-petitive marketplace, may exacerbate the high levels of market volatility seen in recent years, USDEC says. However, long-term demand growth is expected to increase at a rate greater than the increase in overall exportable supply, keeping upward pressure on dairy com-modity prices.

    “The U.S. industry has made great strides in terms of improving quality in recent years; however, top-notch buyers will continue to demand more and our competitors are upping their game,” the authors say.

    “If U.S. dairy exporters stress the fundamentals of doing the right things — improving the quality and range of products, improving customer service, getting closer to customers — the United States should continue to build share in the global marketplace despite increasing competition from EU coun-tries,” they add.

    The EC notes that even with quo-tas, EU dairy exports have increased 45 percent by volume and 95 percent by value in the last fi ve years. Market projections predict strong prospects for further growth, particularly for value-added products such as cheese, as well as for ingredients used in nutritional, sports and dietary products.

    “The end of the milk quota regime is both a challenge and an opportunity for the Union,” says EU Commissioner for Agriculture and Rural Develop-

    ment Phil Hogan. “It is a challenge because an entire generation of dairy farmers will have to live under completely new circumstances and volatility will surely accompany them along the road. But it certainly is an opportunity in terms of growth and jobs. Through increased focus on value-added products as well as on ingredients for “functional” food, the dairy sector has the potential of being an economic driver for the EU. More vulnerable areas where the end of the quota system may be regarded as a threat can benefi t from the pallet of rural development measures following the subsidiarity principle.”

    The European Dairy Association (EDA), the voice of the milk process-ing industry across Europe, says it welcomes the change and challenges that the end of the European milk quota will bring.

    “The end of the quota regime is a big step in terms of CAP simplifi ca-tion, a core request of all agricultural stakeholders and a steady mantra of politicians,” says Alexander Anton, secretary-general, EDA. “For decades, dairy companies have been in charge of managing the milk quota system at

    their level, including the levying of the super levy payments. It goes without saying that the end of the quota will lower the administrative burden at all levels. This will naturally further enhance the competitiveness of the whole sector.”

    Meanwhile, several dairy farmers gathered Tuesday to protest outside the European Parliament in Brussels. The European Milk Board (EMB), a lobby which represents about 100,000 milk producers in Europe, says there is not an adequate system in place to prevent a price collapse after the quotas end. EMB is pushing for the implementation of a market responsibility program that would give a bonus to farmers who vol-untarily produce less in times of surplus and issue a levy on those who produce more despite heavily oversaturated markets.

    “Thanks to the expected milk surplus, as of now conglomerates will dictate terms and conditions to the farmers even more than before. Price will be rock-bottom, as Europe’s farmers will have even less market power to achieve a cost-covering milk price in the future,” says Romauld Schauber, EMB president. CMN

    QUOTAContinued from page 1

    FDA seeks comments on regulations to implement Federal Import Milk ActWASHINGTON — In the Federal Register last week, FDA published a request for comments on the reporting and recordkeeping requirements of its regulations implementing the Federal Import Milk Act (FIMA).

    With respect to the following col-lection of information, FDA invites comments on these topics:

    • Whether the proposed collection of information is necessary for the proper

    performance of FDA’s functions, includ-ing whether the information will have practical utility;

    • The accuracy of FDA’s estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used;

    • Ways to enhance the quality, util-ity and clarity of the information to be collected; and

    • Ways to minimize the burden of the collection of information on re-spondents, including through the use of automated collection techniques, when appropriate, and other forms of information technology.

    Comments may be submitted elec-tronically by May 26 online at www.regulations.gov.

    Under FIMA, milk or cream may be imported into the United States only by the holder of a valid import milk permit. Before such permit is issued, all cows from which import milk or cream is produced must be physi-cally examined and found healthy; if the milk or cream is imported raw, all such cows must pass a tuberculin test; the dairy farm and each plant in which the milk or cream is processed or handled must be inspected and found to meet certain sanitary re-quirements; bacterial counts of the milk at the time of importation must not exceed specifi ed limits; and the temperature of the milk or cream at time of importation must not exceed 50 degrees Fahrenheit.

    For more information, contact FDA’s Paperwork Reduction Act staff at [email protected]. CMN

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    April 3, 2015 — CHEESE MARKET NEWS® 9

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    10 CHEESE MARKET NEWS® — April 3, 2015

    NASSContinued from page 1

    NEWS/BUSINESS

    States and the largest component of Italian production, was up 3.4 percent from the previous February to 310.0 million pounds.

    American-type cheese produc-tion totaled 349.3 million pounds in February 2015, up 2.5 percent from February 2014’s 340.7 million pounds. Production of Cheddar, the largest component of American-type cheese production, was up 3.4 percent from the previous February to 257.3 million pounds, according to NASS.

    Wisconsin led the nation’s cheese production with 226.3 million pounds in February, a 5.0-percent gain over its production a year earlier. California followed with 189.9 million pounds, a 2.3-percent gain over its February 2014 production.

    The next four cheese-producing states were Idaho with 66.7 mil-lion pounds, up 8.8 percent from its production a year earlier; New Mexico with 60.4 million pounds, up 3.0 percent; New York with 58.6 million pounds, up 7.2 percent; and Minnesota with 53.2 million pounds, up 3.4 percent.

    Meanwhile, NASS reports U.S. butter production in February to-taled 156.1 million pounds, down 4.8 percent from February 2014’s 163.9 million pounds. Compared to January 2015, butter production was down 13.1 percent; on an average daily basis February butter production was down 3.8 percent from January.

    California led the nation’s but-ter production with 50.9 million pounds produced in February 2015, a decline of 9.0 percent from its production a year earlier. CMN

    Licensed cheese imports up 39 percent in February over prior yearWASHINGTON — U.S. imports of cheese subject to licensing require-ments totaled 14.6 million pounds in February, up 39 percent from Febru-ary 2014, according to data recently released by USDA’s Foreign Agricul-tural Service. Year-to-date licenced cheese imports totaled 25.6 million pounds, up 24 percent from the fi rst two months of 2014. (The fi gures 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 Em-menthaler with eye formation totaled 4.3 million pounds in February, up 57 percent from a year ago, USDA reports. January-February licensed imports of these cheeses totaled 8.3 million pounds, up 41 percent from the same period last year.

    February licensed Cheddar im-ports totaled 1.8 million pounds, up 118 percent from February last year. January-February licensed Cheddar imports totaled 3.3 million pounds, up 111 percent from the fi rst two months of last year.

    February licensed imports of Italian-type cheeses totaled 1.4 million pounds, up 173 percent from February last year. January-February licensed imports of these cheeses totaled 2.3 million pounds, up 110

    percent from the same months in 2014.

    Imports of Edam and Gouda subject to licensing requirements totaled 1.1 million pounds in February, up 37 percent from a year ago. Year-to-date licensed imports of Edam and Gouda totaled 1.6 million pounds through February, up 2 percent from the same period last year.

    Licensed imports of Blue mold cheeses totaled 379,334 pounds in February, up 31 percent from February of last year. January-February licensed imports of Blue mold cheeses totaled 611,285 pounds, up 6 percent from the fi rst two months of 2014.

    February licensed imports of processed Gruyere totaled 223,381 pounds, down 25 percent from Febru-ary 2014. January-February licensed imports of processed Gruyere totaled 518,676 pounds, up 17 percent from January-February 2014.

    February licensed imports of other cheese not-specifi cally-provided-for totaled 5.4 million pounds, up 7 per-cent from a year ago. January-February licensed imports of cheeses in this category totaled 9.0 million pounds, down 6 percent from the same period a year ago.

    February licensed butter imports totaled 1.5 million pounds, up 54 percent from February last year.

    Year-to-date licensed butter imports totaled 3.1 million pounds through February, up 77 percent from the fi rst two months of 2014.

    Imports of butter substitutes sub-ject to licensing requirements totaled 1.0 million pounds in February, up from 27,774 pounds in February 2014. January-February licensed imports of butter substitutes totaled 2.6 million pounds, up from 137,298 pounds in January-February of last year.

    Year-to-date imports of high-tier cheese and other dairy products to-taled 7.0 million pounds through February, up 58 percent from the same two months in 2014. Leading high-tier imports are Italian-type cheeses, with 2.4 million pounds imported year-to-date, up 34 percent from the same period last year. Following are high-tier butter imports, with 1.9 million pounds imported in January and Feb-ruary, up from 48,832 pounds imported in January-February 2014. CMN

    Transcontinental Capri earns SQF Level 3 certifi cationCLINTON, Mo. — Transcontinental Capri, a fl exible packaging supplier in Clinton, Missouri, announced it has received Safe Quality Food (SQF) Level 3 certifi cation, an audit standard compli-ant with Global Food Safety Initiative requirements.

    Montreal-based printer Transconti-nental Inc. acquired the assets of Capri Packaging, a division of Schreiber Foods Inc., last April. (See “Capri Packaging sold to Transcontinental” in the April 4, 2014, issue of Cheese Market News.)

    In order to earn SQF certifi cation, hold-ers are bound by contract to implement robust food safety control systems, validate their effectiveness and monitor them on an ongoing basis, Transcontinental Capri notes. The program requires a long implementation process and takes place in stages (desk audit, physical audit, review).

    “I am really proud of our people at Transcontinental Capri and their hard work to provide consumers with a quality product that is very safe,” says Brian Reid, president of the printing and packaging sector of TC Transcontinental. “The SQF Level 3 certifi cation confi rms to employees, suppliers, customers and the industry that food packaging safety and quality are and will always be es-sential to TC Transcontinental.” CMN

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    Synder introduces open channel ribbed spacer VACAVILLE, Calif. — Synder Filtration has added an 80mil open channel ribbed spacer, which shows an average pressure drop reduction of 37 percent compared to the standard diamond spacer in Synder’s in-house studies.

    According to Synder, ribbed spacers are well-suited for high solids applications such as whey protein concentration and have the potential to reduce energy consumption and increase total solid loading capacity.

    Given Synder’s study results, the open channel ribbed spacers have the potential to increase the element run time between CIPs and reduce energy consumption and operating costs.

    For the complete study, visit www.synderfiltration.com/applications/case-studies/open-channel-ribbed-spacer-for-high-solids-applications/. CMN

    NEW PRODUCTS

    BUDGETContinued from page 1

    measure, leaving Congress to negotiate a compromise budget later this month.

    Both plans would spend less than the $4 trillion budget proposal released by President Obama in February. (See “President Obama releases 2016 bud-get, proposes single agency for food safety oversight” in the Feb. 6, 2015, issue of Cheese Market News.)

    “The budget resolution is a fi scally responsible set of priorities for our na-tion,” says Sen. Thad Cochran, R-Miss., chair of the Senate Appropriations Committee. “The Senate Republican budget balances without raising taxes, provides a means to replace Obamacare and protects our vital national security interests in the face of evolving threats.”

    Sen. Bernie Sanders, I-Vt., ranking member of the Senate Budget Committee, called the budget “morally repugnant” and says Republicans rammed through a budget plan that protects tax breaks for the rich and large corporations while cutting benefi ts that millions of Americans rely on.

    “While the rich get richer and corpo-rate profi ts soar, millions of Americans are working longer hours for lower wages,” Sanders says. “Despite that, this morally repugnant Republican budget protects those on top who are doing the best while attacking the needs of the most vulner-able — working families, the elderly, the children, the sick and the poor.”

    The non-partisan Congressional Bud-get Offi ce (CBO) says the proposed 2016 budget passed by the Senate would boost the nation’s economic growth by more than $500 billion over the next 10 years.

    CBO also estimates that per-person economic output would be 1.5 percent higher by 2025 under the Senate budget. This increase in economic growth would occur because of spending changes

    made in the budget, which reduces the federal debt and makes more lending available to private businesses and job creators. A lower debt nationwide also would push down interest rates for all borrowers, CBO says.

    The White House Offi ce of the Press Secretary in a statement issued late last week said that, following in the footsteps of their House colleagues, Senate Republicans have voted in favor of a budget that relies on top-down economics and gimmicks.

    “The Senate Republican budget refuses to ask the wealthy to contribute a single dollar to defi cit reduction, put-ting the entire burden on the middle class, seniors, low-income children and families, and national security,” the White House says.

    The agricultural sector can breathe a sigh of relief that neither the House nor Senate budget proposals included drastic cuts to the ag sector.

    Nearly 400 farm and food groups — including the National Milk Producers Federation (NMPF) and National Farm-ers Union (NFU) — in late February sent a letter to the House and Senate budget committees urging lawmakers not to reopen the 2014 Farm Bill in search of additional budget cuts.

    In a Feb. 23 letter, the groups note it took three years to enact the farm bill, which eliminated direct subsidy payments to farmers and included other signifi cant cuts. For dairy farmers, it eliminated three long-standing pro-grams, and created the new Margin Protection Program.

    “These diffi cult cuts were made across the farm safety net, conservation programs and nutrition programs,” the letter says. “The policy changes and reforms associated with these cuts are only now being fully implemented (and) no additional cuts to these programs should be considered, at least until these policies have time to take place

    and be thoroughly evaluated.”The Obama administration has pro-

    posed $16 billion in cuts to federal crop insurance to offset commodity program spending beyond what was anticipated in the farm bill.

    However, the Senate bill passed last week has no-reopening of the farm bill and the House resolution calls for a total of $1 billion in savings over 10 years, which is s small fraction of farm bill spending over that same period, news reports say.

    “Luckily, we appeared to have dodged a bullet in the budget process so far,” says John Hollay, vice president, government relations, NMPF. “We have strong support in Congress for the work that was done in the 2014 Farm Bill and the recognition that agriculture has already worked to provide some budget relief in that process. We know that we will always be a target for sav-ings, but the sense at this point is that we should essentially stay intact from a budget perspective.”

    Meanwhile, NFU last week also joined a diverse coalition representing family farmers, ranchers, consumers and rural affairs in submitting testimony urging Congress to reject the inclusion of any policy riders in the fi scal 2016 ag-riculture appropriations bill that would weaken or rescind country-of-origin labeling (COOL) or limit the rulemaking authority of the Grain Inspection Pack-ers and Stockyards Agency (GIPSA).

    “Opponents of basic rights for producers and consumers have re-peatedly chosen the appropriations process as a mechanism to pre-empt the World Trade Organization process on COOL and to limit the agricul-ture secretary’s authority to address anti-competitive market concerns,” says Roger Johnson, president, NFU. “NFU urges Congress to reject policy riders that would undermine the ef-fectiveness of COOL and GIPSA.” CMN

    New Zealand, Korea sign free trade agreement WELLINGTON, New Zealand — New Zealand and Korea last week signed a free trade agreement (FTA), which will reduce or eliminate tariffs over time for a number of New Zealand’s dairy exports to Korea.

    On entry-into-force (EIF), tariffs on 48.3 percent of New Zealand’s current exports to Korea will be eliminated. The agreement will progressively remove tariffs on 98 percent of New Zealand’s exports to Korea.

    “This agreement secures the long-term future of New Zealand exporters to Korea whose international competi-tors were benefi ting from Korea’s other FTAs,” says New Zealand Trade Minister Tim Groser.

    The United States has a FTA with Ko-rea that went into effect in March 2012.

    In the year ending June 2014, New Zealand exported NZ$220 million worth of dairy products to Korea, with dairy accounting for an average of 17 percent of New Zealand’s total exports to Korea. While New Zealand dairy products are highly valued in Korea, dairy tariffs are high, New Zealand’s Ministry of Foreign Affairs and Trade notes. Tariffs range from 36 percent to 176 percent, and it is estimated that New Zealand dairy exports to Korea currently incur duties worth NZ$89 million per year.

    Under the FTA, New Zealand’s larg-est dairy exports to Korea, including cheese and butter, will have tariffs eliminated between 6-14 years after EIF. During the phasing period, New Zealand exporters also will have access to transitional tariff rate quotas (TRQs) with zero in-quota duty for cheese, butter and infant formula, as well as permanent TRQ on milk powder. CMN

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    12 CHEESE MARKET NEWS® — April 3, 2015

    TPAContinued from page 1

    NEWS/BUSINESS

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    Hearing delves into concerns on country-of-origin labeling as U.S. awaits WTO rulingWASHINGTON — While stakeholders await a ruling from the World Trade Organi-zation (WTO) on the U.S. country-of-origin labeling (COOL) rule, the House Agricul-ture Committee’s Livestock and Foreign Agriculture Subcommittee recently held a hearing to address concerns on potential retaliation from the rule.

    In late October, WTO issued a compli-ance panel report that found the revised U.S. COOL rule violates U.S. international trade obligations. The COOL rule requires most retailers to provide country-of-origin labeling for fresh fruits and vegetables, fi sh, shellfi sh, peanuts, pecans, macada-mia nuts, ginseng, meat and poultry.

    Canada and Mexico had challenged the rule in the WTO, claiming it has a trade-

    distorting impact by reducing the value and number of cattle and hogs shipped to the U.S. market.

    Backed by the fi nding, Canada and Mexico may retaliate against a wide range of U.S products, including dairy products, with high, burdensome tariffs, according to members of the COOL Reform Coalition, which promotes reforms to the COOL requirements to ensure that they are compliant with international trade obligations. The International Dairy Foods Association is a member of the coalition. Canada and Mexico represent two of the largest markets for U.S. agricultural goods, the coalition notes.

    The United States appealed WTO’s rul-ing against its COOL regulation for meat

    Nov. 28. (See “United States fi les appeal of WTO ruling against country-of-origin labeling regulation for meat” in the Dec. 5, 2014, issue of Cheese Market News.) WTO is expected to rule by May 18 on the appeal.

    At the hearing, Rep. Jim Costa, D-Calif., said he believes COOL is a failed experiment.

    “Should the WTO reject the United States’ appeal, we could face harsh retali-ation efforts against products produced in California and across the country,” Costa says.

    He notes the