since 1876 w s l y cheese reporter 3, 2017.pdfbetin, jacqueline brassier, arnaud solandt and jean...

NMPF Still Wants Congress To Pass DAIRY PRIDE Act; Plant-Based Food Firms Don’t

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theWorld's Dairy Industry W

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CHEESE REPORTER Vol. 142, No. 20 • Friday, November 3, 2017 • Madison, Wisconsin

US Dairy Exports Rose Slightly In Sept.; Dairy Imports Declined 7%

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$1.00

$1.25

$1.50

$1.75

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October Avg Prices – 2016 vs 2017Average CME Prices** Class III & 4b Milk Price x 10

Saputo To Acquire Goat Cheese Manufacturer, Marketer MontchevreMontreal, Quebec—Saputo Inc. announced Wednesday that it has entered into an agreeement to acquire Betin, Inc., doing business as Montchevre.

Montchevre manufactures, markets and distributes goat cheese in the US, mainly under the Montchevre brand. For the 12-month period ened on June 30, 2017, Montchevre generated rev-enues of approximately CDN$150 million (US$116.5 million).

Montchevre’s activities are con-ducted at one manufacturing facil-ity located in Belmont, WI. The business employs approximately 319 people.

Founded in 1988 by Michel Betin, Jacqueline Brassier, Arnaud Solandt and Jean Rossard, the

• See Montchevre, p. 5

Cheese Production Rose 2.7% In September Despite Drops In CA, ID; Butter, Yogurt Output Both DeclinedWashington—US cheese produc-tion during September totaled 1.014 billion pounds, up 2.7 percent from September 2016, USDA’s National Agricultural Statistics Service (NASS) reported Thursday.

Cheese production during the first nine months of 2017 totaled 9.253 billion pounds, up 2.6 per-cent from the first nine months of 2016.

Regional cheese production dur-ing September, with comparisons to September 2016, was as follows: Central, 463.7 million pounds, up 4.4 percent; West, 414.9 million pounds, down 1.2 percent; and Atlantic, 135 million pounds, up 9.7 percent.

September cheese production in the states broken out by NASS, with comparisons to September 2016, was: Wisconsin, 271.6 mil-lion pounds, up 2.2 percent; Cali-fornia, 194 million pounds, down 4.5 percent; Idaho, 80.6 million pounds, down 1.5 percent; New York, 77.4 million pounds, up 10.1 percent; New Mexico, 60.5 mil-lion pounds, up 1 percent; Min-nesota, 56.4 million pounds, up 6.6 percent; Pennsylvania, 33.2 mil-lion pounds, up 7.3 percent; South Dakota, 24.5 million pounds, up 14 percent; Iowa, 19 million pounds, down 0.1 percent; Ohio, 18 mil-lion pounds, up 5.1 percent; Ver-mont, 12 million pounds, up 14.8 percent; Il l inois, 7.7 million

• See Cheese Output Up, p. 6

Anaheim, CA, and Washing-ton—Efforts to expose the decep-tive labeling and marketing of plant-based products that exploit the nutritional halo of real dairy products continue to gain trac-tion and “has these fake food marketers worried,” attendees at the National Milk Producers Fed-eration’s (NMPF) annual meet-ing were told this week.

Jim Mulhern, NMPF’s presi-dent and CEO, said he remains committed to achieving con-gressional passage of the DAIRY PRIDE Act (DPA), legislation that would require the US Food and Drug Administration (FDA) to enforce existing food labeling and prohibit the sale of any food that uses the market name of a dairy product, is not the milk of a hooved animal, is not derived from such milk, and does not

contain such milk as a primary ingredient.

The Senate bill was introduced in January by US Sen. Tammy Baldwin (D-WI), and now has six co-sponsors, including three Democrats, two Republicans and one Independent.

Identical legislation was intro-duced in the House in late Jan-uary by US Reps. Peter Welch (D-VT), Sean Duffy (R-WI), Mike Simpson (R-ID), Joe Court-ney (D-CT), David Valadao (R-CA) and Suzan DelBene (D-WA).

The House bill now has 18 bipartisan co-sponsors.

FDA regulations define “milk” as a product of a cow, with similar definitions for yogurt and cheese products NMPF noted. Though existing federal policy is clear • See Plant-Based Foods, p. 10

Cheese Exports Jumped 23%; Cheese Imports Fell 15%; Nonfat Dry Milk Exports Dropped 29%Washington—US dairy exports during September were valued at $405.7 million, up 0.4 percent from September 2016, according to figures released today by USDA’s Foreign Agricultural Service.

During the first nine months of 2017, US dairy exports were val-ued at $3.991 billion, up 19 per-cent from the first nine months of 2016.

US dairy imports during Sep-tember were valued at $195.7 million, down 7 percent from Sep-tember 2016. Dairy imports dur-ing the first nine months of this year were valued at $2.032 billion, down 6 percent from the first nine months of 2016.

Cheese exports during Septem-ber totaled 59.1 million pounds, up 23 percent from September 2016. Cheese exports during the first nine months of 2017 totaled 566.4 million pounds, up 24 per-cent from the first nine months of 2016.

Leading markets for US cheese exports during the first nine months of 2017, on a volume basis, with comparisons to the first nine months of 2016, were: Mexico, 165.1 million pounds, up 15 per-cent; South Korea, 89.4 million pounds, up 35 percent; Japan, 56.9 million pounds, up 28 percent; Australia, 47.6 million pounds, up 93 percent; China, 21.3 mil-lion pounds, up 34 percent; Can-ada, 20.6 million pounds, up 0.2 percent; and Chile, 14.6 million pounds, down 1 percent.

September nonfat dry milk exports totaled 88.8 million pounds, down 29 percent from September 2016. NDM exports during the first nine months of this year totaled 969.5 million pounds, up 6 percent from the first nine months of last year.

Dried whey exports in Septem-ber totaled 40.5 million pounds, up 25 percent from September 2016. During the January-September period, dried whey exports totaled 338.7 million pounds, up 13 per-cent from a year earlier.

Whey protein concentrate exports during September totaled

21.8 million pounds, down 27 percent from September 2016. WPC exports during the first nine months of 2017 totaled 228.3 mil-lion pounds, down 3 percent from the first nine months of 2016.

September lactose exports totaled 68.1 million pounds, up 4 percent from September 2016. Lactose exports during the January-September period totaled 580.8 million pounds down 2 percent from the same period last year.

Butter exports during Septem-ber totaled 2.5 million pounds, down 15 percent from Septem-ber 2016. Butter exports during the first nine months of this year totaled 31.7 million pounds, up 70 percent from the first nine months of last year.

Ice cream exports during Sep-tember totaled 10.3 million pounds, up 10 percent from Sep-tember 2016. January-September ice cream exports totaled 105.9 million pounds, up 4 percent from a year earlier.

US cheese imports during September totaled 28.4 million pounds, down 15 percent from September 2016.

CHEESE REPORTER November 3, 2017

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The Cheese Reporter is the official publication of the following associations:

California Cheese & Butter AssociationLisa Waters,

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International Dairy-Deli-Bakery Association636 Science Drive, Madison, WI 53711

Missouri Butter & Cheese InstituteTerry S. Long, 19107 Factory Creek Road,

Jamestown, MO 65046

Nebraska Cheese AssociationEd Price, Fremont, NE 68025

New York State Cheese Manufacturer’s Assn Kathyrn Boor, 11 Stocking Hall,

Cornell University, Ithaca, NY 14853

North Central Cheese Industries AssnLloyd Metzger, SDSU, Box 2104,

Brookings, SD 57007

North Dakota Cheese Makers’ AssnChuck Knetter, Medina, ND 58467

Ohio Swiss Cheese AssociationDarlene Miller, P.O. Box 445,

Sugar Creek, OH 44681

South Dakota State Dairy AssociationHoward Bonnemann, SDSU, Box 2104,

Brookings, SD 57007

Southwestern Wisconsin Cheese Makers’ Association

Myron Olson, Chalet Cheese Coop, N4858 Cty Hwy N, Monroe, WI 53566

Wisconsin Association for Food ProtectionBob Wills

PO Box 620705, Middleton WI 53562

Wisconsin Cheese Makers’ AssociationJohn Umhoefer, 5117 W. Terrace Dr.,

Suite 402, Madison, WI 53718

Wisconsin Dairy Products AssociationBrad Legreid, 8383 Greenway Blvd.,

Middleton, WI 53562

CHEESE REPORTER (Publication Number: ISSN 0009-2142). Published weekly by Cheese Reporter Publishing Co. Inc., 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-7972; Phone: (608) 246-8430; Fax: (608) 246-8431. Subscriptions: $140.00 per year in USA; Canada and Mexico: $195.00 per year; other foreign subscribers, please write for rates. Advertising and Editorial material are copyrighted material. Any use without publisher’s consent is prohibited. Cheese Reporter does not endorse the products of any advertiser or any editorial material. POSTMASTER: If undeliverable, Form 3579 requested. Periodicals postage paid at Madison, WI. Address all correspondence to: Cheese Reporter, 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-7972

...if cheese consumption kept growing while the nutrition news was mostly bad, think about how much consumption could grow in the future now that the nutrition news is far more positive.

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D I C K G R O V E S

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

EDITORIAL COMMENT

US Cheese Industry Poised For Further GrowthThe fourth biennial Global Cheese Technology Forum was held last week in Reno, NV, and it was diffi-cult if not impossible to leave that meeting feeling anything but opti-mistic about future prospects for the US cheese industry.

One general observation that can be made concerns the event itself; since it was first held back in 2011, attendance at the Global Cheese Technology Forum has more than doubled. Last week’s gathering attracted more than 230 people from across the US as well as from several foreign countries.

The opening panel of industry leaders exuded optimism about the cheese industry’s prospects. For example, Kyle Jensen of Hil-mar Cheese Company in Hilmar, CA, pointed out that per capita cheese consumption jumped from 35 pounds in 2015 to 36 pounds in 2016, and noted that cheese is “very much on-trend” because of its simple ingredient list and clean label, among other things.

Granted, it isn’t all that likely that per capita cheese consump-tion will jump another pound this year, simply because such large increases don’t happen very often. The last time per capita cheese consumption jumped by a pound or more in a single year was in the 20th century (1999, to be exact, when per capita cheese consump-tion, at 29.14 pounds, was up 1.3 pounds from 1998).

That point aside, just think about the impact another one-pound increase in per capita con-sumption would have on the US cheese industry. The math is pretty easy: the US population currently stands at around 326.1 million, meaning US cheese production would have to increase by 326 mil-lion pounds to accommodate the consumption increase.

Granted, there are a couple of caveats here. First, stocks of natu-ral cheese at the end of September stood at about 1.3 billion pounds, so the US could conceivably meet a one-pound increase in per cap-ita cheese consumption by simply

drawing stocks down to around a billion pounds.

Second, the US imports a fair amount of cheese, so at least part of a one-pound increase in per capita consumption could be cov-ered by more imports. But that’s unlikely to put much of a dent in the consumption increase.

For one thing, cheese imports last year, at 452.5 million pounds, were at their highest level in a decade and just 22 million pounds below the record high level for cheese imports (which by itself indicates that cheese imports aren’t likely to grow much even as consumption keeps rising).

And for another thing, cheese imports through the first eight months of 2017 were actually running about 33 million pounds behind the first eight months of 2016. So much for imports help-ing to cover the rise in per capita consumption.

Both Louise Hemstead of Organic Valley and George Chap-pell of Glanbia Nutritionals men-tioned the nutritional superiority of cheese and other dairy products, and that’s something that seems likely to grow cheese consumption in the future.

Keep in mind that it’s been close to 25 years since the Nutrition Facts panel became mandatory on most packaged food products, including dairy products. This is a notoriously anti-dairy label, and especially anti-cheese, because it highlights such things to avoid as calories from fat, total and satu-rated fat, cholesterol and sodium, while downplaying the positives.

But things are starting to turn around, albeit slowly, for cheese nutrition. The calories from fat line will be gone on the updated Nutrition Facts label, and there’s more and more evidence that satu-rated fat isn’t the dietary villain it was long believed to be.

Also, there’s a fair amount of research concluding that dietary sodium also isn’t the dietary vil-lain it has long been believed to be, and that it’s actually possible

to reduce sodium intake too much. On that front, the cheese industry can probably not count too much on a future boom in low-sodium cheese sales.

As far as dietary cholesterol is concerned, well, this is a mighty frustrating area for cheese and other dairy products. The “Scien-tific Report of the 2015 Dietary Guidelines Advisory Committee” concluded that cholesterol “is not a nutrient of concern for overcon-sumption,” but the new Nutrition Facts label will continue to require cholesterol to be listed, and in boldface no less.

Still, it seems safe to say that the nutrition story for cheese is no longer at rock bottom, and will continue to improve in the years ahead. And if cheese consumption kept growing while the nutrition news was mostly bad, think about how much consumption could grow in the future now that the nutrition news is far more positive.

Finally on the industry leaders panel at last week’s GCTF, Doug Wilke of South Dakota-based Valley Queen Cheese Factory noted that his company’s biggest opportunity is a growing milk sup-ply along with growing customer demand and the willingness of the company’s owners to invest.

The growing milk supply can be illustrated by the fact that South Dakota’s milk production has grown by more than a billion pounds in the last decade (from 1.50 billion pounds in 2006 to 2.55 billion pounds last year), while the willingness of Valley Queen’s owners to invest can be illustrated by the announcement back in June (and reported on our front page June 30th) that Valley Queen’s board of directors recently approved a $50 million expansion project for its Milbank plant.

There’s quite a bit of optimism in the cheese industry these days, as speakers noted at last week’s Global Cheese Technology Forum, and that optimism is based on a variety of factors that should stay positive for the foreseeable future.

CHEESE REPORTERNovember 3, 2017

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Leading Makers Of Milk Formulas Are Putting Profits Before Nutrition Science, Report SaysUtrecht, the Netherlands—Prod-uct differentiation in milk formula products marketed by the four leading manufacturers is not sci-ence-based, but is instead informed by careful research into consumer preferences and guided by a desire to increase manufacturers’ market share and profits, according to a new report.

Milking It: How milk formula companies are putting profits before science, was published by The Changing Markets Foundation, Globalization Monitor, SumOfUs, and the European Public Health Alliance. The report’s authors reviewed over 400 products on sale in a variety of countries around the world from the top four infant formula manufacturers: Nestle, Danone, Mead Johnson Nutrition (which was acquired earlier this year by Reckitt Benckiser Group plc), and Abbott.

The study focused on the most popular types of cows-milk-based powdered milk formula for infants under 12 months old in the US, UK, Germany, France, Poland, Bulgaria, Spain, the Netherlands, mainland China and Hong Kong, Indonesia, Australia, New Zealand and South Africa.

The market for milk formulas is “highly profitable,” the report said. It’s currently worth US$47 billion annually, and is projected to increase by around 50 percent by 2020. Most of this growth is in Asia, with mainland China, Hong Kong, Indonesia and Vietnam pro-jected to be the leading markets in terms of both total sales and pro-jected growth.

The range of breastmilk substi-tutes (BMSs) being placed on the

market has increased rapidly since the 1980s, when the first versions of formula for older children, “fol-low-on formula,” appeared. BMS manufacturers are also more fre-quently turning to another strat-egy: placing new or reformulated products onto the market that claim to be based on state-of-the-art science and compositionally ever closer to breastmilk.

Findings include the following: The nutritional composition

is guided by legislation or Codex standards, but controls on its nutri-tional quality are largely depen-dent on industry self-regulation.

A global standard, first set by Codex in the 1980s, sets minimum requrements for levels of macro-nutrients (protein, carbohydrates, etc.), and micronutrients (miner-als, vitamins, etc.), in infant and follow-on formulas. The types and levels of nutrients in infant milks are broadly similar across legisla-tures of major markets, but required and/or permittable ingredients and labeling restrictions may vary.

There is very little oversight of the nutritional composition and compliance with regulatory stan-dards of infant milks sold around the world. Although infant milks are perceived as a highly controlled product, authorities are heavily reliant on industry self-regulation. No clear scientific rationale

underpins product ranges. Despite legal requirements on the nutri-tional composition, follow-on formula and milks marketed as spe-cialty products, the top manufac-turers have a large range; research for this report identified over 400 products. These include similar products being sold under their

own and subsidiary brands as part of product differentiation strate-gies.

Manufacturers are marketing an increasing range of products for different age groups (one to 12 months, one to six months, one to three months, etc.), products with additional nutrients which are not required by law (omega fatty acids, prebiotics and probiotics), products claiming to solve general condi-tions such as preventing allergies, and products with raw ingredients and flavors to cater to wider con-sumer preferences and concerns.

Nevertheless, companies are placing products with different formulations on different markets, which suggests that there is little nutritional science and few health considerations behind their prod-uct range.

Nestle is the only company that sells products in all of the 14 markets investigated, with a total of 165 products. Danone sells the most products (173 in total) among the companies reviewed in this study, while Mead Johnson sells 46 and Abbott sells 35. Product differentiation is a

way to raise prices and increase profit margins. There is “huge dis-parity” in the cost of infant formula both within and between coun-tries. The four largest companies are charging high prices for their so-called “premium products,” especially in the growing Asian markets, where there is “fierce competition” for market share.

The report called for a compre-hensive overhaul of global infant milk products and the introduc-tion of stricter regulations, so that only those products based on unequivocal scientific advice and with the highest quality of nutri-tional ingredients are sold.

USDA Awards Contracts For 88.9 Million Pounds Of Natural American Cheese For 2018Kansas City, MO—USDA’s Agricultural Marketing Ser-vice (AMS) on Wednesday announced the awarding of con-tracts to five companies for a maximum of 88,850,400 pounds of natural American cheese for delivery during 2018.

The purchases, which were made in support of USDA/domestic food distribution pro-grams, include 69,645,600 pounds of natural American cheese in 500-pound barrels; 11,251,200 pounds of generic reduced fat shredded Cheddar 6/5-pound bags; 4,608,000 pounds of generic shredded Cheddar 6/5-pound bags; and 3,345,600 pounds of generic Cheddar 40-pound blocks.

Awards are as follows; the purchase price for each delivery period is the accepted differential price per pound indicated plus the applicable previous month’s average of the CME cash market price for barrels or block cheese:

Associated Milk Produc-ers, Inc.: a total of 40,065,600 pounds of 500-pound barrels at a differential price of 20.25 to 26.50 cents per pound; and a total of 433,976 pounds of generic shred-ded Cheddar 6/5-pound bags at a differential price of 20.75 to 29.75 cents per pound.

Bongards’ Creameries: a total of 23,700,207 pounds of 500-pound barrels at a differen-tial price of 22.58 to 29.40 cents per pound; 1,203,600 pounds of Cheddar 40-pound blocks at a differential price of 23.33 to 30.99 cents per pound; 3,285,402 pounds of generic reduced-fat Cheddar 6/5-pound bags at a dif-ferential price of 23.58 to 31.45 cents per pound; and 224,780 pounds of shredded generic Cheddar 6/5-pound bags at a dif-ferential price of 25.08 to 25.18 cents per pound.

Dairy Farmers of America:a total of 2,612,985 pounds of generic shredded Cheddar 6/5-pound bag at a differential price 23.10 to 30.20 cents per pound.

Land O’Lakes: a total of 5,879,793 pounds of 500-pound barrels at 25.58 to 29.72 cents per pound; and 2,142,000 pounds of 40-pound Cheddar blocks at a differential price of 13.33 to 21.77 cents per pound.

Masters Gallery Foods: a total of 7,965,798 pounds of generic reduced-fat shredded Cheddar 6/5-pound bags at a differential price of 20.99 to 29.64 cents per pound; and 1,336,259 pounds of generic shredded Cheddar 6/5-pound bags at a differential price of 22.41 to 29.46 cents per pound.


from our archives

50 YEARS AGONov. 3, 1967: St. Paul, MN—One of the important actions at the annual meeting of the North Central Cheese Industries Asso-ciation here this week was the adoption of a resolution recog-nizing that Section 22 of the Ag Adjustment Act is dependent upon the administration for han-dling and urging the “immediate passage of the Dairy Import Act of 1967 by Congress.”

Milwaukee, WI—The Stella Cheese Division of Universal Food Corporation here is cel-ebrating its 50th year of mak-ing Italian cheese. Stella began in 1917 when Italian immi-grants Count Guilio Bolognesi and Attilio Castigliano started making chevre using milk from northern Wisconsin farms.

25 YEARS AGONov. 6, 1992: Green Bay, WI—Ole Brander of Kirkeby Mejeri-Klover Maelk Cheese Factory, Stenstrup, Denmark, won the 1992 World Natural Cheese Championship Contest here this week with a Danablu entry scoring 99.875 in the Blue Cheese class.

Fair Lawn, NJ—With antici-pated sales of $35 billion this year from just 700 locations, the nation’s membership warehouse club industry is one of the lead-ing concerns of grocery retailers in the US. The rapid expansion is being closely watched by gro-cery store operators who gar-nered sales of $376 billion last year from 140,000 locations.

10 YEARS AGONov. 2, 2007: Sacramento, CA—California’s dairy industry is dealing with myriad problems relating to inadequate plant capacity, and those problems are expected to persist for several years. The plant capacity issue came to light during testimony submitted at last month’s hear-ing on Class 4a and 4b pricing formulas.

Washington—The food and agriculture industries will soon be seeing new faces at the top of two key federal agencies. Former two-term North Dakota governor Edward Schafer was nominated by President Bush to lead USDA, succeeding Mike Johanns. Robert Brackett, director of CFSAN, will join GMA as senior vice president and chief science and regulatory affairs officer.

J O H N U M H O E F E R

Executive DirectorWisconsin Cheese Makers Association

608-828-4550jumhoefer @wischeesemakers.org

Great Potential & Growing Pains for Emerging Dairy Sheep Industry

WCMA PERSPECTIVES

Behind rich, award-winning wheels and delicate fresh sheep’s milk cheeses from Wisconsin stands a sheep farming industry struggling with price and profitability.

“The industry is in a serious place right now,” Laurel Kieffer told WCMA recently. “We need a coming together on milk qual-ity and components from the farm and price incentives from cheese makers that allow dairies to stay in business.”

Kieffer, a long-established Wis-consin dairy sheep farmer, sold her flock in the last 12 months and formed a new promotion group in August 2016, the Sheep Marketing Association of Wisconsin. Kieffer wishes to build a bridge between the farmer, cheese maker and consumers, noting “We all have a responsibility in this equation.”

For Anna Landmark, who along with Anna Thomas Bates owns Landmark Creamery, the equa-tion doesn’t add up. “Every time we go to a retail show, every buyer is looking for sheep’s milk cheese,” Landmark said. But despite strong demand, “Things feel tenuous on the farm side right now.” The price that farms need is difficult to align with a price point buyers and con-sumers will accept, she explained.

Bob Wills, owner of Cedar Grove Dairy in Plain, WI, is hope-ful. “We’re finding more and more demand for our sheep milk cheeses. Entries in cheese competitions are

growing and quality is improving for these domestics.” He points to the dispersed geography of farms and the lack of marketing as issues impacting growth in the category and the health of farms.

The “dean” of dairy sheep researchers, Prof. Dave Thomas, agrees. “The challenge in the dairy sheep industry is the small amount of producers and the small amount of milk produced.…One of the things everyone must do is find a stable market – processing at the farm or with a local processor will-ing to buy sheep milk.” Thomas, recently retired professor of sheep management and genetics with the University of Wisconsin, offered the comment in a March webinar on dairy sheep farming in the US.

According to the WDATCP, Wisconsin has 14 licensed dairy sheep farms, with fewer than 5,000 milking ewes in the state.

It’s a little industry with big challenges; facing big demand with little supply.

Dairy sheep farming is relatively new in the US, with the founding of the North American Dairy Sheep Association just 30 years ago as a reasonable marker for the begin-nings of the industry. And while a consumer may see cow, goat and sheep milk cheese featured side-by-side in upscale cheese islands at retail grocers, sheep’s milk is more rare, and production more scarce, than most may realize.

In his spring webinar, Prof. Thomas estimated national sheep milk production at 9.4 million pounds in 2016. That’s roughly equivalent to all cow’s milk pro-duced in Kansas in one day. This sheep milk production has the potential to produce about 2 mil-lion pounds of cheese per year, the amount of cow’s milk cheese Wis-consin produces in five hours.

But Thomas sees the upside potential. Imports of European sheep’s milk cheese exceed 70 mil-lion pounds, including favorites such as Roquefort from southern France, Pecorino Romano from Sardinia and Manchego from Spain. Manchego and “other sheep milk cheeses” were two of the top three fastest growing exact-weight cheese categories in 2016, based on retail scanner data compiled by Wisconsin Milk Marketing Board.

Landmark Creamery is betting on success. The owners are nearly finished renovating retail space in Paoli, WI, that will feature their line of sheep’s milk cheeses, and new minted packaging and pro-duction space in the building will allow for growth, particularly in bloomy rind cheeses.

Yet despite the potential, dairy sheep farms lack the economies of scale to make milk at a price point where domestic cheeses can compete head-to head with the dominant cheese imports. “I feel it on both sides,” award-winning cheese maker Brenda Jensen told WCMA. “I struggle to pay my own farm a price for milk that turns a profit while, as a cheese maker, I look for buyers that will accept the price my cheese needs.”

Jensen founded Hidden Spring Creamery in 2005 and her Driftless line of soft, flavored sheep’s milk cheeses has been a hit. Brenda now manages the Westby, WI, farm and creamery founded with her hus-band Dean, housing 800 ewes with 300 giving milk at any one time.

“We’d like to have 2,000 sheep, but we’ve reached a level where finding good labor has become an issue,” Jensen said. The farm employs two full- and three part-time hands, and the labor-intensive tasks of milking, lambing, feeding and cleaning require employees that can work hard and be profi-cient in multiple skills. “I could also use help in the creamery, but I’m pretty particular about finding the right fit,” she said with a laugh.

Like many specialty cheese mak-ers, Jensen has reached a plateau where major investment, such as packaging equipment, is needed to lift the creamery to the next level of production. “People taste our cheese and fall in love,” she noted. “We can make a profit, but it’s an awful lot of work to make a little money. Luckily,” she adds, “I like to work.”This topic will conclude next month with a look at the promise of new sheep genetics coming to the US.


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FDA Proposes To Revoke Soy Protein-Heart Disease Health Claim; Soyfoods Group ObjectsWashington—The US Food and Drug Administration (FDA) this week proposed to revoke its autho-rization of a health claim regarding the relationship between soy pro-tein and the risk of coronary heart disease (CHD).

In a proposed rule published Tuesday, FDA said it has ten-tatively concluded, based on its re-evaluation of the totality of the publicly available scientific evidence now available, that the evidence does not support the agency’s previous determine that there is significant scientific evidence (SSA) to support an authorized health claim for the relationship between soy protein and reduced risk of CHD.

FDA is accepting comments on the proposed rule by January 16, 2018. Comments may be filed electronically at www.regulations.gov; the docket number is FDA-2017-N-0763.

The Soyfoods Association of North America (SANA) said it will advocate for continuation of an unqualified health claim, based on the totality of the evidence demonstrating that soy protein lowers LDL-cholesterol.

FDA in 1999 had authorized a health claim about the relationship between soy protein and a reduced risk of CHD. But “numerous stud-ies” published since then have pre-sented “inconsistent findings on the relationship between soy pro-tein and heart disease,” according

to Susan Mayne, Ph.D., director of FDA’s Center for Food Safety and Applied Nutrition (CFSAN).

While some evidence continues to suggest a relationship between soy protein and a reduced risk of heart disease, “the totality of cur-rently available scientific evidence calls into question the certainty of this relationship,” Mayne said in a statement.

For example, some studies, pub-lished after FDA authorized the health claim, show inconsistent findings concerning the ability of soy protein to lower heart-damag-ing LDL (low-density lipoprotein) cholesterol.

“Our review of that evidence has led us to conclude that the relationship between soy protein and heart disease does not meet the rigorous standard for an FDA-authorized health claim,” Mayne stated.

Should FDA finalize this pro-posed rule, the agency intends to allow the use of a qualified health claim as long as there is sufficient evidence to support a link between eating soy protein and a reduced risk of heart disease. A qualified health claim, which requires a lower scientific standard of evi-dence than an authorized health claim, would allow industry to use qualifying language that explains the limited evidence linking con-sumption of soy protein with heart disease risk reduction, Mayne explained.

Montchevre(Continued from p. 1)

company has grown to be the leading goat cheese manufacturer in the US, the company noted on its website. Arnaud Solandt and Jean Rossard took control of the company and its stock in the early 2000s. The company’s sales are shared equally between retail and foodservice.

The decision to proceed with the sale of the company is not a selfish one, Arnaud Solandt said in a note posted on the company’s website. It is based on the convic-tion that this alliance with provide a stronger, more secure market for Montchevre’s 500-plus milk producers and will help propel Montchevre to new heights.

“Our success was built on our unique relationship with all of our milk producers,” Solandt com-mented. “As the milk they produce flows through our plant like the blood in our veins, we will forever be grateful to our producers as we know none of our successes would have been possible without their hard work and dedication to qual-ity.”

Solandt also thanked Montchevre’s customers “for part-nering with us and for putting their trust in our work and our products. Montchevre and Saputo share a passion for quality which will not be compromised. We are confident that our customers will benefit from a broader logistics platform and some improved production capacity.”

Montchevre has worked with

Saputo for many years, Solandt noted, “and together we have enjoyed many successes. We have grown fond of Saputo’s ethics and their commitment to quality. It is their vision for the future that has led us to this decision.

“There will be some logi-cal integration of our businesses and Montchevre will become the flagship of Saputo’s Goat Cheese Division,” Solandt con-tinued. Jean Rossard will remain the Montchevre plant manager in Belmont and Solandt will act as a senior advisor assisting in the development of the Saputo Goat Cheese Division.

The transaction is subject to cus-tomary conditions, including regu-latory approval, and is expected to close by the end of 2017, Saputo noted.

This marks Saputo’s second acquisition of a major goat cheese manufacturer and marketer in the last three years. In late 2015, Saputo had announced that it had acquired the companies forming Woolwich Dairy, which produces, distributes, markets and sells goat cheese in Canada and the US.

At the time of that acquisi-tion, Woolwich’s operations were comprised of three manufacturing facilities, two in Ontario and one in Lancaster, WI, which opened in 2008.

Last week, Saputo announced that it had entered into an agree-ment to acquire the business of Australia-based Murray Goulburn Cooperative Co. Limited (for more details, please see on page 1 of our Oct. 27th issue).


70,000

75,000

80,000

85,000

90,000

95,000

100,000

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

2017

2016

925,000

950,000

975,000

1,000,000

1,025,000

1,050,000

1,075,000


2017

2016

Cheese Production2017 vs. 20161,000 pounds

7,500

8,000

8,500

9,000

9,500

10,000

10,500

11,000


2017

2016

320,000

340,000

360,000

380,000

400,000

420,000

440,000

460,000


2017

2016

Yogurt Production 2017 vs. 20161,000 pounds

120,000

130,000

140,000

150,000

160,000

170,000

180,000


2017

2016

Butter Production2017 vs. 20161,000 pounds

50,000

60,000

70,000

80,000


2017

2016

Ice Cream (reg. hard) Production 2017 vs. 20161,000 gallons

Dry Whey Production2017 vs. 20161,000 pounds

115,000

125,000

135,000

145,000

155,000

165,000

175,000

185,000


2017

2016

NDM Production2017 vs. 20161,000 pounds

WPI Production2017 vs. 20161,000 pounds

80,000

85,000

90,000

95,000

100,000


2017

2016

Lactose Production2017 vs. 20161,000 pounds

Cheese Output Up(Continued from p. 1)

pounds, up 13.7 percent; and New Jersey, 4.6 million pounds, down 6.4 percent.

American-type cheese produc-tion during September totaled 393.8 million pounds, up 4.2 per-cent from September 2016. Jan-uary-September American-type cheese output totaled 3.654 billion pounds, up 3.4 percent from the same period in 2016.

American-type cheese produc-tion with comparisons to Septem-ber 2016, was: Wisconsin, 77.5 million pounds, up 7 percent; Cali-fornia, 49.1 million pounds, down 7.6; Idaho, 47.3 million pounds, down 3.8 percent; Oregon, 16.8 million pounds, up 2.3 percent; Iowa, 11.9 million pounds, down 10.1 percent; and New York, 10.3 million pounds, down 1.7 percent.

Cheddar cheese production dur-ing September totaled 282.8 mil-lion pounds, up 4.5 percent from September 2016. Cheddar output during the first nine months of this year totaled 2.667 billion pounds, up 4.6 percent from the first nine months of last year.

September production of other American-type cheeses totaled 111 million pounds, up 3.3 percent from September 2016.

Italian, Other CheesesSeptember Italian-type cheese production totaled 435.2 mil-lion pounds, up 1.4 percent from September 2016. Italian cheese production during the first nine months of 2017 totaled 4.003 bil-lion pounds, up 1.5 percent from the first nine months of 2016.

Production of Italian cheeses with comparisons to September 2016, was: Wisconsin, 142.4 mil-lion pounds, up 1.1 percent; Cali-fornia, 123.8 million pounds, down 3.1; New York, 31 million pounds, down 0.3 percent; and Idaho, 26.5 million pounds, up 1.6 percent.

Mozzarella production during September totaled 334 million pounds, up 0.2 percent from Sep-tember 2016. Mozz output dur-ing the January-September period totaled 3.1 billion pounds, up 0.9 percent from a year earlier.

Output of other Italian cheeses, with comparisons to September 2016, was: Parmesan, 34.3 million pounds, up 17.6; Provolone, 33.7 million pounds, down 0.8; Ricotta, 22.1 million pounds, down 0.8 per-cent; Romano, 4.6 million pounds, up 13.7; and other Italian cheeses, 6.6 million pounds, up 1.5.

Production of other cheese vari-eties during September, with com-parisons to September 2016, was:

Swiss cheese: 25.9 million pounds, up 3.3 percent.

Cream and Neufchatel: 85 mil-lion pounds, up 8.1 percent.

Brick and Muenster: 15.2 mil-lion pounds, up 0.4 percent.

Hispanic cheese: 21.6 million pounds, down 5.6 percent.

Blue and Gorgonzola: 6.9 mil-lion pounds, down 0.9 percent.

Feta: 10.2 million pounds, down 3 percent.

Gouda: 4.3 million pounds, down 26.7 percent.

All other types of cheese: 15.4 million pounds, up 3.7 percent.

Whey Products ProductionSeptember production of dry whey, human, totaled 89.6 mil-

lion pounds, up 20.4 percent from September 2016. Manufacturers’ stocks of dry whey, human, at the end of September totaled 105 million pounds, up 107.5 percent from a year earlier and 7.1 percent higher than a month earlier.

Lactose production, human and animal, during September totaled 95.2 million pounds, up 0.3 per-cent from September 2016. Manu-facturers’ stocks of lactose, human and animal totaled 153.1 million pounds, up 23.3 percent from a year earlier but 4.8 percent below a month earlier.

Whey protein concentrate pro-duction, human and animal, dur-ing September totaled 38.7 million pounds, up 5.3 percent from Sep-tember 2016. Manufacturers’ stocks of WPC, human and animal, at the end of September totaled 71.4 mil-lion pounds, up 22.3 percent from a year earlier but down 0.2 percent from a month earlier.

Manufacturers’ stocks of WPI at the end of September totaled 26.6 million pounds, up 35.4 percent from a year earlier but down 1.1 percent from a month earlier.

Butter And Milk PowdersSeptember butter production totaled 134.8 million pounds, down 0.3 percent from September 2016. Butter output during the first nine months of 2017 totaled 1.383 billion pounds, down 0.7 percent from the first nine months of 2016.

Regional butter production in September, with comparisons to September 2016, was: West, 62.1 million pounds, down 5.1 percent; Central, 60 million pounds, up 6.7 percent; and Atlantic, 12.6 million pounds, down 6.5 percent.

Nonfat dry milk production dur-ing September totaled 133.4 mil-lion pounds, up 6.2 percent from September 2016. January-Septem-ber NDM output totaled 1.375 bil-lion pounds, up 3.4 percent from the same period last year.

Manufacturers’ shipments of nonfat dry milk during September totaled 141.5 million pounds, up 6.6 percent from September 2016. Manufacturers’ stocks of NDM at the end of September totaled 321.1 million pounds, up 48.6 percent from a year earlier and 2.6 percent higher than a month earlier.

September production of other dry milk products, with compari-sons to September 2016, was: skim milk powder, 30.4 million pounds, down 21 percent; dry whole milk, 10.6 million pounds, up 53.2 per-cent; milk protein concentrate, 10.5 million pounds, down 1.4 per-cent; and dry buttermilk, 8.2 mil-lion pounds, up 2.5 percent.

Yogurt, Other Dairy ProductsYogurt output during the first nine months totaled 3.369 billion pounds, down 1.6 percent from the from the same period in 2016.

Sour cream production totaled 108.6 million pounds, down 0.1 percent from September 2016. Sour cream output during the January-September period totaled 1.006 billion pounds, up 2 percent from a year earlier.

Cream cottage cheese produc-tion during September totaled 26.9 million pounds, down 3.2 percent from September 2016. Lowfat cot-tage cheese output during Septem-ber totaled 28.6 million pounds, down 6.3 percent from September 2016.


Anaheim, CA—The Michi-gan Milk Producers Association (MMPA) plant in Middlebury, IN, earned the Chairman’s Plaque here this week at the 2017 National Milk Producers Federation’s (NMPF) Championship Cheese Contest.

MMPA’s winning Pepper Jack entry earned a score of 99.70 in the Hot or Spicy Flavor category.

Honors for Best Italian Cheese went to the Caves of Faribault Team of Prairie Farms Dairy, Inc., Faribault, MN, for its St. Pete’s Select Blue entry.

Steve Buechel of Land O’Lakes, Kiel, WI, captured honors for Best Cheddar cheese, while Ryan Stezel and Dwayne Elkins of Prairie Farms Dairy, Fort Wayne, IN, won the award for Best Cottage Cheese with a 4% Small Curd entry.

The contest, which drew a record 194 entries from NMPF’s member cooperatives, was held in conjunction with the joint annual meeting of NMPF, National Dairy Board (NDB) and the United Dairy Industry Association (UDIA).

Mild CheddarFirst place: Steve Buechel, Land O’Lakes, Kiel, WI, 99.50Second place: Efrain Manzo, Northwest Dairy Association, Sunnyside, WA, 99.30Third place: Mark Frederixon, AMPI, Blair, WI, 99.20

Medium CheddarFirst place: Mason Frost, Foremost Farms USA, Marshfield, WI, 98.80Second place: Jeff Berg, Land O’Lakes, Kiel, WI, 98.60Third: Team McCadam, Agri-Mark, Inc., Chateaugay, NY, 98.60

Sharp CheddarFirst: Tillamook Team 1, Tilla-mook County Creamery Associa-tion, Tillamook, OR, 99.60Second place: Luke Demes, Fore-most Farms, Lancaster, WI, 99.50Third: Doug Snortheim, Foremost Farms, Marshfield, WI, 99.40

Extra Sharp CheddarFirst place: Luke Kopecky, Land O’Lakes, Kiel, WI, 99.40Second: Team McCadam, Agri-Mark, Inc., Chateaugay, NY, 99.40Third: Team McCadam, Agri-Mark, Inc., Chateaugay, NY, 99.30

MozzarellaFirst place: Craig Schelling, Fore-most Farms, Milan, WI, 99.60Second place: Jaun-Carlos Salazar, DFA, Turlock, CA, 99.50Third: Chilton Team 1, Foremost Farms, Chilton, WI, 99.40

ProvoloneFirst place: Craig Schelling, Fore-most Farms, Milan, WI, 99.80Second: Chilton Team 3, Fore-most Farms, Chilton, WI, 99.50Third place: Mike Breznak, DFA, New Wilmington, PA, 99.00

Hard & Mold Ripened ItalianFirst place: Caves of Faribault Team, Prairie Farms Dairy, Inc., Faribault, MN, Blue, 99.50Second: Caves of Faribault Team, Prairie Farms Dairy, Inc., 99.30Third place: AMPI, Hoven, SD, Asiago, 99.20

NaturalFirst place: Tillamook Team 3, TCCA, Monterey Jack, 99.50Second: Mike Heinrichsen, AMPI, Jim Falls,WI, Colby Jack, 98.80Third place: Tillamook Team 3, TCCA, Colby Jack, 98.60

SwissFirst: Luana Team, Prairie Farms Dairy, Luana, IA, Swiss, 99.30Second place: Shullsburg Team, Prairie Farms Dairy, Shullsburg, WI, Baby Swiss, 97.60Third: Loaf A Shift, Bongards’ Creameries, Norwood, MN, 97.50

Plain Processed AmericanFirst place: Process Slice Team, AMPI, Portage, WI, 99.20Second place: Matt Lamp, AMPI, Rochester, MN, 98.80Third place: Process Slice Team, AMPI, Portage, WI, 98.70

Flavored Processed AmericanFirst: Process Loaf Team, AMPI, Portage, WI, 98.90Second place: Process Loaf Team, AMPI, Portage, WI, 98.80Third: Loaf B Shift, Bongards’ Creameries, Norwood, MN, 97.90

Hot Or Spicy FlavorFirst place: Michigan Milk Pro-ducers Association, Middlebury, IN, 99.70Second place: Team Cabot, Agri-Mark, Cabot, VT, 99.50Third place: Tillamook Team 3, TCCA, 99.40

Unique Or Mild FlavorFirst place: Caves of Faribault Team, Prairie Farms Dairy, St. Mary’s Grassfed Gouda, 99.70Second: Caves of Faribault Team, Prairie Farms Dairy, Faribault, MN, Jeffs’ Select Gouda, 99.10Third: Tillamook Team 1, TCCA, Smoked Yellow Cheddar, 99.00

Open ClassFirst place: Ann White, Upstate Niagara Co-op, Campbell, NY, Natural Whole Milk Ricotta, 99.50Second: Prairie Farms Dairy, Luana, IA, Neufchatel, 99.40Third: Mike Shaffer, Upstate Niagara Co-op, Campbell, NY, Natural Whole Milk Ricotta, 99.30

Reduced FatFirst place: Team Slice, Land O’Lakes, Spencer, WI, American Processed Slice-On-Slice, 98.90Second place: Team Cabot, Agri-Mark, Cabot, VT, Cheddar, 98.50Third place: Loaf A Shift, Bon-gards’ Creameries, Norwood, MN, Processed American, 98.40

Michigan Milk Producers Tops NMPF Cheese Contest With Pepper Jack Entry

Cottage CheeseFirst place: Ryan Stezel and Dwayne Elkins, Prairie Farms Dairy, Fort Wayne, IN, 99.20Second place: Team Cabot, Agri-Mark, Cabot, VT, 99.10Third place: Paul Andrews, North-west Dairy Association, Issaquah, WA, 99.00

Reduced Fat Cottage CheeseFirst place: Rory Hundley, Prairie Farms Dairy, Carbondale, IL, 99.30Second: Quincy Crew, Prairie Farms Dairy, Carbondale, IL, 98.60Third: Paul Andrews, Northwest Dairy Association, Issaquah, 98.50

Flavored Cottage CheeseFirst: Upstate Niagara Coopera-tive, West Seneca, NY, Pineapple, 99.30

Second: Upstate Niagara Coop-erative, West Seneca, NY, Chive, 98.60

Natural Cheese SnackFirst place: Ellsworth Cooperative Creamery, Ellsworth, WI, Cheddar Cheese Curds, 99.70Second place: Caves of Faribault Team, Prairie Farms Dairy, Farib-ault, MN, Cheese Curds, 99.60Third place: Tillamook Team 2, TCCA, Cheese Curds, 99.50

Processed Cheese SnackFirst place: Team Custom, Land O’Lakes, Spencer, WI, Queso Bravo Cheese Dip with Jalapeno & Red Peppers, 99.50Second place: Luana Team, Prai-rie Farms Dairy, Luana, IA, Cream Cheese Spread, 98.80.

Carl Rasch, Ken Nobis, and Joe Diglio of Michigan Milk Producers Federation with the NMPF

Cheese Award plaque, in front of their championship Pepper Jack cheese.


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PERSONNELROBERT TYRRELL has been named vice president of manu-facturing for Litehouse, Inc., Responsible for overseeing the operations of the company’s five food manufacturing facilities in multiple states. Tyrrell is a 25-year food industry veteran with expe-rience in manufacturing, food safety, supply chain management, co-packing and packaging inno-vation.

BRYAN GRIFFEN has been named director of industry ser-vices for the Association for Packaging & Processing Tech-nologies (PMMI). In his new role, Griffen will apply his pack-aging and processing experience to industry services like the OpX Leadership Network, OMAC, the Packaging Management Council (PMC) and technical standards. He comes to PMMI after 19 years at Nestlé, most recently serving as group engineering manager, corporate engineering for Nestlé USA & Canada. Griffen also served as chairman of the Organi-zation for Machine Automation and Control, helping increase membership by 50 percent and expanding the group’s reach to Europe, Asia and Australia.

TAYLOR BOONE has joined the regulatory department of the International Dairy Foods Asso-ciation (IDFA) as coordinator of regulatory affairs. As coordi-nator, Boone will be responsible for helping draft comments on regulatory issues and proceedings, as well as supporting efforts of IDFA’s regulatory team. In Feb-ruary, Boone was selected as one of 28 students nationwide to par-ticipate in USDA’s Agricultural Outlook Forum Student Diversity

Program, which introduces stu-dents to contemporary agribusi-ness, trends, scientific research and ag policy.

Carolyn Hollingsworth “Carol” Gingrich, 78, died Oct. 24 fol-lowing a 15-year battle with Alzheimer’s Disease. Carol and her husband Michael Gingrich first purchased a dairy farm in Clyde, WI, and later bought another dairy farm in nearby Dodgeville, WI, where they started Uplands Cheese, Inc. in 2000. Mike and Carol Gingrich received the American Cheese Society’s Lifetime Achievement Award in 2016.

Clarence Jenny, 92, of Platteville, WI, died Oct. 18 in Dubuque, IA. Jenny was a cheese maker for 52 years, starting his career at age 12 making Brick and Limburger cheese for Walter Minning. Later, Jenny ran Drumman Valley and Apple Grove Cheese Factories before buying and operating the Belmont and Platteville Dairies.

JERRY MESSER is the 2017 recipient of the National Dairy Promotion and Research Board’s (NDB) Richard E. Lyng Award for his contributions and distin-guished service to dairy promo-tion. Messer, a dairy farmer from Richardton, ND, serves as chair of Midwest Dairy Association’s North Dakota Division Board and the North Dakota Dairy Promo-tion Commission –roles he’s held for 25 years. Since early 2000, Messer also served on Midwest Dairy’s corporate board, holding the position of chairman from 2008-17.

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3-A SSI Expands Suite Of E-Learning Resources With New Modules On Cleaning, Hygienic Equipment DesignMcLean, VA—3-A Sanitary Stan-dards, Inc. (3-A SSI) has expanded its offerings of free e-learning resources with a new module on the basics of cleaning and the first new advanced module on hygienic equipment design.

The new introductory module is the fourth in a series of new “Basics” e-learning modules. Mod-ule 4.0, “Basics of Cleaning and Sanitizing,” provides a basic under-standing of principles of cleaning, sanitizing, and sterilization pro-cesses.

The module features a closer look at various methods of clean-ing, including manual cleaning, clean-out-of-place (COP) and clean-in-place (CIP). It also cov-ers information on inspection, cleaning and sanitation documen-tation, as well as on safety hazards that might occur in the process of cleaning.

The first new advanced module, 2.1, “Advanced Hygienic Equip-ment Design: Materials & Surface Finishes,” offers advanced hygienic design knowledge on the materials of construction and surface treat-ments.

The content emphasizes hygienic materials selection and

the metals and non-metals com-monly used for product contact and non-product contact surfaces.

In addition, the module cov-ers surface finishes, as well as the selection process for surface treat-ment methods, to optimize corro-sion resistance, wear, durability, toxicity, and hygienic safety.

The new advanced module is available at a subscription price, 3-A said.

The first three “Basics” modules were introduced last year. Those three modules include: “1.0 Over-view of Principles of Hygienic Design & Foundation Elements,” “2.0 The Basics of Hygienic Equip-ment Design,” and “3.0 Basics of Hygienic Facility Design & Envi-ronmental Controls.”

Learning objectives are listed at the beginning of each module and interactive assessment tools are included to support the learn-ing experience. Each module is narrated and script is provided for convenience.

All materials are accompaied by illustrations, including photos from the field, animations, as well as diagrams.

Each module is about one hour in length.

Additional modules are in development and other advanced sections are planned for several of the modules.

The modules are now available at www.3-a.org, in the Knowledge Center.


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EU Dairy Exports Performing ‘Extraordinarily Well’ In 2017, But SMP Stocks Are A ProblemBelfast, Northern Ireland—Euro-pean Union (EU) dairy exports “are performing extrordinarily well this year,” but “we do need to address the issue of the signifi-cant” stocks of skim milk powder accumulated during the crisis years 2015 and 2016, Phil Hogan, the EU’s agriculture commissioner, remarked at the World Dairy Sum-mit here Monday.

By August, total EU dairy exports had increased from a year earlier by more than 8 percent in volume and close to 23 percent in value, Hogan noted. This means a total value of 6.3 billion euros, 1.2 billion euros more than last year.

Only butter, due to current high prices, is suffering a fall in exported volumes, but in value terms, butter exports have improved by 12 per-cent, Hogan said.

EU exports of skim milk pow-der (SMP) are “rocketing with an impressive increase” of 43 percent in the January to August period, Hogan pointed out. This increased volume translates into a 57 percent increase in value.

While the public intervention stocks of SMP accumulated in 2015 and 2016 “had an undeni-able market stabilization impact, the very existence of those public stocks is weighing on the market,” Hogan said. “I also believe we must avoid new buying-in under public intervention next year, without due market justification.”

One option, Hogan said, would be to start the next campaign (starting on March 1, 2018) with buying in through a tender pro-cedure.

“That means we decide together what volumes should be accepted and at what price,” he explained. To make that possible, the ceiling for buying-in at fixed price (cur-rently 109,000 tons) needs to be set at zero in 2018. This idea is currently being examined with EU agricultural ministers.

What Hogan was “putting on the table” would mean that inter-vention would remain available, but it would be operated “in a controlled manner, on the basis of prevailing market conditions. This would be done through decisions being taken on a monthly basis on bids received from operators from March until the end of September 2018.”

The EU dairy sector is still adjusting to the post-quota envi-ronment, Hogan said. High hopes for a post-quota bonanza in 2015 were dashed when the industry was faced with a “perfect storm” of negative factors: the Russian import ban, the global dip in com-modity prices, a slowdown in dairy purchases by China and increased domestic production.

The European Commission took

“immediate action,” supporting the dairy sector with a package of structured aid measures, Hogan noted. Milk prices are now mov-ing in the right direction, but “it is still a volatile market, and we will need to watch signals on supply and demand and be able to adapt as quickly as possible.”

Over the next 10 years, global consumption of dairy products is expected to continue increasing at an annual rate of 1.8 percent. That’s why Hogan has been “trav-elling the world to find new mar-kets for our dairy products.” And EU agri-food exports have contin-ued to grow in 2017

Figures for EU cheese exports show the strength of the EU dairy sector, Hogan said. In 2016, just two years after the Russian import ban — which meant the loss of an outlet for one-third of EU cheese exports — EU operators “managed to find alternative customers and outstrip pre-embargo export vol-umes.”

And figures for 2017 confirm this positive trend is “far from over,” Hogan continued: EU cheese exports by August had increased by 7 percent in volume and 14 percent in value.

“But trade has to be seen both as an opportunity and as a chal-lenge for the dairy sector: we need to export some 13 percent of EU milk production to preserve the domestic balance,” Hogan pointed out.

Butter Prices May Be EasingMarket orientation and the capac-ity to adapt to new and unforeseen circumstances are the keys to suc-cess, Hogan said.

“We have seen recently how big swings in market patterns can occur in relatively short time peri-ods. Butter prices have doubled in only one year, leading to an unprecedented fat and protein asymmetry. It was not long ago that butterfat was the burden for dairy production and protein the shining star.”

After butter reached histori-cal prices, “now they appear to be easing down,” Hogan noted. “Nobody knows where the trend will end although there are reasons to believe that increased demand for butter is a structural phenom-enon. The EU dairy industry must therefore anticipate this evolving scenario.”

Clear market signals must be followed, Hogan said. In recent times, there has been a modest milk production increase, follow-ing a period of contraction.

“While this is a normal reaction to improved market conditions, farmers need to keep their heads cool and not overreact to increased milk prices,” Hogan advised.

New Zealand’s NZX To Launch Global Skim Milk Powder Option ContractWellington, New Zealand—New Zealand’s NZX announced Mon-day that it will launch a global skim milk powder (SMP) option contract on Mon-day, Dec. 4, 2017.

The contract is being launched in response to growing trading volumes in NZX’s SMP futures mar-ket, which are up 113 percent this year, and demand from the broader market as interest in NZX’s suite of dairy risk manage-ment tools increases.

The SMP option contract will be settled to the underlying NZX skim milk powder futures contract, which is cash settled (rather than physically delivered) to an aver-age of the winning prices for SMP, medium heat-NZ, Contract 2 in Global Dairy Trade (GDT) auc-tions. The contract size for the NZX SMP futures contract is one ton.

“NZX is continually looking to expand its product offering in response to customer feedback; the addition of a global skim milk pow-der option contract will provide traders in our global market with another tool to help manage vola-tility in dairy commodity prices,” said Nick Morris, NZX head of

derivatives.Quote vendor

codes, exchange fees , start ing prices, and other details pertaining to the first trading day for the SMP option contract will be released shortly, NZX said.

NZX launched a whole milk pow-der futures con-tract in October

2010, followed by skim milk pow-der and anhydrous milkfat futures contracts in February 2011.

In November 2011, NZX launched whole milk powder options contracts and in Decem-ber 2014 added butter futures to its derivative product offering. Most recently, NZX launched a milk sol-ids price futures contract, as well as options on the milk solids price futures contract.

“a global skim milk powder option contract will provide traders in our global market with another tool to help manage volatility in dairy commodity prices.

Nick Morris, NZX


WCMA Moves Office To Madison’s East Side, Has New Phone NumberMadison—The Wisconsin Cheese Makers Association (WCMA) has moved to new office space on Madison’s east side.

The WCMA is now located at 5117 West Terrace Drive, Suite 402, Madison, WI 53718. The move also means a new primary telephone number for the WCMA: (608) 286-1001. The toll-free number remains unchanged, at (800) 999-2454.

For more information, visit www.wischeesemakers.org.

China Lifts Trade Barriers On Imports Of Some Cheeses From EUBrussels, Belgium—Trade barriers on some European cheeses imposed by China have been lifted, allowing trade to resume immediately, the European Commission announced recently.

According to the European Union Chamber of Commerce in China, the importation of certain types of European cheeses that use particular cultures (e.g., geotrichum candidum, penicillium candidum, and penicillium camemberti) was affected by recently strengthened regulatory measures undertaken by China to ensure food safety.

The barriers affected specific types of European cheese such as Roquefort, Danish Blue, Gorgon-zola or Stilton, which have been safely imported and consumed in China for decades, the Euro-pean Commission said. However, the Chinese authorities recently decided to roll back their previous authorization of certain cultures and techniques used in the pro-duction of these so-called “moldy” cheeses on the grounds that they were a risk to consumer health, effectively banning their import from Europe.

The EU’s position has always been clear: the techniques and cultures questioned by the Chi-nese have been used by EU cheese makers for centuries, and European cheeses clearly do not pose a risk to consumer health.

Folowing consumer complaints last summer and meetings of the European Commission’s experts on trade and health and food safety and their Chinese counterparts, the Chinese authorities have agreed to lift the trade obstacles and to update their rules on cheese.

The European Commission’s del-egation and the French Embassy in China have also proposed to orga-nize a technical seminar between European and Chinese experts on relevant cheese standards in a bid to limit the risk of further trade obstacles in the future.

Processing & Packaging Equipment

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Plant-Based Foods(Continued from p. 1)

on this classification, “the FDA has unfortunately allowed these decidedly non-dairy copycats made from nuts, beans, seeds and grains to label their products using dairy-specific terms,” Mulhern said.

He told attendees at NMPF’s annual meeting that the US reg-ulatory system for food labeling is failing consumers, as it fails to adjust to the proliferation of foods mimicking real dairy products. In the absence of a strong federal role in food labeling, nutritionally infe-rior imitators will continue to pass themselves off as suitable substi-tutes for real milk.

Mulhern noted that vegan orga-nizations have organized to oppose the DPA “because they recognize that the attention we’ve brought to this issue through the introduciton of the DAIRY PRIDE Act shines a spotlight on the nutritional infe-riority of fake dairy products, in comparison to real milk and dairy products.

Once Congress enacts this legl-siation, FDA will no longer be able to ignore their own existing regula-tions.”

While FDA Commissioner Scott Gottlieb has recently expressed interest in having his agency look more carefully at the labeling issue, passage in Congress of the DPA is needed to force FDA to act on the matter, NMPF said.

PBFA Leads DPA OppositionMeanwhile, leading advocates and organizations representing manu-facturers of plant-based foods, including the Soyfoods Associa-tion of North America, the Good Food Institute, Blue Diamond and Campbell Soup Company, descended on Washington on Wednesday to lobby against the DAIRY PRIDE Act.

Leading the coalition was the Plant Based Foods Association (PBFA), a trade association rep-resenting 88 producers of plant-based foods, including plant-based dairy alternatives. The group told members of Congress to oppose the DAIRY PRIDE Act.

PBFA members joining the lobby day to meet with their rep-resentatives included Doug Radi, CEO of Good Karma Foods; August Vega, founder and CEO of MALK Organics; Billie Thein, chief strategy officer for New Barn; and Mike Messersmith, general manager of OATLY. PBFA board member Miyoko Schinner, founder and CEO of Miyoko’s Kitchen, couldn’t make the lobby but made a one-minute video about why she wants Congress to reject the bill.

Campbell Soup Company on Monday had announced that it is joining the PBFA. Campbell is said to be the first major food company to join the organization, which was founded in early 2016.

Recognizing changing con-sumer preferences around health and well-being, Campbell noted that it has increased the amount of vegetables and whole grains in its portfolio and has accelerated innovation efforts to bring more packaged fresh and refrigerated products to the retail perimeter with brands such as Bolthouse Farms, 1915 Organic and Garden Fresh Gourmet.

Recently, Campbell launched a new line of plant-based “milks” under its Bolthouse Farms brand. Made from pea protein, Bolthouse Farms Plant Protein Milk is refrig-erated and contains 10 grams of pea protein per eight-ounce serving and offers consumers an alterna-tive “milk” that is free of common allergens such as dairy, nuts and gluten, the company said.

“We are committed to pro-viding our consumers with food

choices that meet their nutrition, well-being and lifestyle needs,” said Ed Carolan, president, Camp-bell Fresh. “Working together with the Plant Based Foods Association, we can advance our shared goal of bringing more plant-based foods to consumers.”

“We’re thrilled to have Camp-bell join our membership,” said Michele Simon, executive direc-tor, Plant Based Foods. “With their leadership, the plant-based foods sector is certain to grow even faster. We look forward to a long and productive partnership.”

A new report from market research firm Packaged Facts pre-dicts that the market for dairy and dairy alternative beverages will reach $28 billion by 2021, spurred by plant-based dairy alternatives, which are expected to come to rep-resent 40 percent of the combined total of dairy and dairy alterna-tives, up from 25 percent in 2016.

“Vegetarians and vegans together account for less than 15 percent of all consumers and their numbers do not grow very rapidly, but a growing number of consumers identify themselves as flexitarian or lessitarian, mean-ing that they’ve cut back on their consumption of animal-based foods and beverages,” commented David Sprinkle, research director for Packaged Facts. “It is this group that is most responsible for the sig-nificant and ongoing shift from dairy milk to plant-based milk.”

Looking ahead, Packaged Facts expects several new and novel non-dairy “milks” to find a wider audience, including barley milk, flax milk, hemp milk, pea milk and quinoa milk.

Packaged Facts recently estab-lished a free curated webpage on dairy and dairy alternatives, at www.packagedfacts.com/Content/Featured-Markets/Dairy-and-Dairy-Alternatives.


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DFA Acquires NJ-Based Cumberland DairyBridgeton, NJ—Dairy Farm-ers of America (DFA) on Thurs-day announced the acquisition of Cumberland Dairy, a family-owned processor of ultra-pasteurized dairy products located in Bridgeton, NJ.

Cumberland Dairy was founded in 1933 by Charles Catalana at a small milk plant behind his family home. The company experienced major growth in the 1970s and 1980s under the direction of Car-mine Catalana III. Today, third-generation principals Carmine IV, Frank and David Catalana lead Cumberland’s 180 employees.

Cumberland Dairy’s products — including ultra-pasteurized milks, creams, frozen dessert mixes, non-dairy creamers, and other refrig-erated, fluid products — are distributed mainly along the East-ern seaboard, utilizing a variety of different distribution channels. Much of what the company pro-duces is under a licensing or co-packing arrangement.

The acquisition of Cumberland Dairy aligns with DFA’s strategy to expand the cooperative’s commer-cial investments and ownership into extended shelf life processing.

“For 85 years, Cumberland Dairy has been intently focused on our mission to deliver high-quality products and dedicated service to our loyal customers,” said Carmine Catalana IV, president of Cum-berland Dairy. “Looking ahead, a future with DFA means that we can continue to focus on our val-ues as a company while accelerat-ing our opportunities for growth. This is a very exciting time for the entire Cumberland Dairy family, and we look forward to this next chapter with DFA.”

The business will continue to operate as Cumberland Dairy and employees will retain their cur-rent positions. The Catalana fam-ily and existing management team will continue to manage all day-to-day operations, including customer relationships, milk procurement and production.

Innovation Foods LLC, a juice and beverage manufacturer founded by the Catalanas in 2008, is not included in this transaction. It will remain independent and wholly-owned by the family.

“This acquisition represents a commitment by our farmer-own-ers to expand our investments in processing and to continue to grow the US dairy industry,” said Rick Smith, DFA’s president and chief executive officer. “The Cata-lanas’ values and passion for the industry align closely with those of our cooperative, and we believe this is a tremendous opportunity to expand upon the foundation of quality products and superior ser-vice already in place at Cumber-land Dairy.”

Proposed Legislation To Drop ‘America’s Dairyland’ From WI License Plates BlastedMadison—Draft legislation in the Wisconsin Assembly that would drop “America’s Dairyland” as the slogan on Wisconsin motor vehi-cle license plates is being criticized by several dairy and farm organiza-tions.

State Rep. Scott Allen’s co-sponsorship memo to state law-makers, circulated in the wake of Wisconsin Manufacturers & Com-merce (WMC) head Kurt Bauer’s suggestion that the “America’s Dairyland” slogan be replaced, notes that “Our national advertise-ment should reflect where we are going as a state and not where we

have been,” according to the Wis-consin Cheese Makers Association (WCMA), one of the groups that opposes the measure.

“Dairy generates $43.4 billion of economic activity and directly supports tens of thousands of jobs in Wisconsin. Cheese manufactur-ing has steadily grown in Wiscon-sin, with an annual average growth of 2.8 percent since 1970,” noted John Umhoefer, the WCMA’s executive director. “Wisconsin cheese makers lead the nation, producing more than three billion pounds of cheese each year, and expect to increase their production by more than 250 million pounds by 2019.

“Dairy isn’t ‘who we were.’ It is, without question, where we are going as a state,” Umhoefer added. “All across Wisconsin, new

factories are opening with hun-dreds of new, family-supporting jobs available, not only in cheese manufacturing, but also in cutting and packaging cheese products, warehousing cheese, and distribut-ing cheese to markets around the world.”

The Dairy Business Association of Wisconsin, in a letter sent out today, asked all members of the state legislature to oppose Allen’s “ill-conceived measure,” which “would discredit our heritage, insult those responsible for one of our state’s most powerful economic sectors and foolishly undermine our state’s brand image.”

“‘America’s Dairyland’ is who we are and where our future lies,” said Jim Holte, president of the Wisconsin Farm Bureau Federa-tion.


www.cheesereporter.com/events.htmSUPPLIER NEWS

COMPANY NEWS

PEOPLE

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

Dec. 6-8: ADPI/CME Dairy Risk Management Seminar, Fess Parker Doubletree, Santa Bar-bara, CA. Visit www.adpi.org.

•Jan. 21-23: 43rd Winter Fancy Food Show, Moscone Center, San Francisco, CA. Visit www.specialtyfood.com.

•Jan. 21-24: Dairy Forum 2018, J.W. Marriott Desert Springs, Palm Desert, CA. For details, visit www.idfa.org.

•March 5-6: NYS Cheese Manu-facturers’ Association’s Spring Meeting, DoubleTree Hotel, Syracuse, NY. For details, visit www.nyscheesemakers.com.

•March 6-8: World Champion-ship Cheese Contest, Monona Terrace Convention Center, Madison, WI. Visit www.world-championcheese.org.

•March 6-8: Washington State University’s Advanced Cheese Making Short Course, Pullman, WA. Visit creamery.wsu.edu/about-us/upcoming-events/

•April 17-19: International Cheese Technology Expo, Mil-waukee Center, Milwaukee, WI. Visit www.cheeseexpo.org.

•April 29-May 1: ADPI/ABI Annual Conference, Chicago Downtown Marriott, Chicago, IL. Visit www.adpi.org/events.

•June 10-12: International Dairy-Deli-Bakery Association Expo, New Orleans, LA. For details, visit www.iddba.org.

•July 15-18: IFT Expo, McCor-mick Place, Chicago, IL. Visit www.iftevent.org.

•July 25-28: American Cheese Society (ACS) Annual Confer-ence, David L. Lawrence Con-vention Center, Pittsburgh, PA. Visit www.cheesesociety.org.

•Aug. 9-10: IMPA Annual Meet-ing, Sun Valley Resort, Sun Val-ley, ID. More details available soon at www.impa.us.

PLANNING GUIDE

Cheese Makers’ Resource Conference Set For Feb. 13-14 In New Holland, PANew Holland, PA—Artisan cheese makers of all skill levels are invited to attend the 2018 Cheese Makers’ Resource Conference here Feb. 13-14 at Yoder’s Restaurant & Buffet.

Sponsored by Agri-Service, LLC, the two-day conference fea-tures educational workshops, one-on-one sessions, cheese tastings, and a special Evening of Cheese event.

New this year is a special Alpine Cheese track led by award-winning cheese maker Jeremy Stephenson of Farms for City Kids in Reading, VT.

Stephenson was most recently trained by a master cheese maker from France in the production of Tarentaise, and currently serves as president of the Vermont Cheese Council (VCC).

The speaker lineup also includes Emily Harbison of Dairy Connec-tion, Inc., on understanding cheese

cultures; Linda Luke of The Luke Group on the basics of distribu-tion; and Rufus Musser IV of Mil-ton Creamery on the fundamentals of accounting for cheese industry members.

A session on food safety plan-ning will be led by Kerry Kayle-gian of the Penn State University Extension, and will include Steve Murphy of the Dairy Practices Council and Penn State Univer-sity’s food science master’s student Lisa Caprera.

Fons Smits of Tulip Tree Cream-ery will lead a session on washed curd cheeses, and Peter Dixon of Dairy Foods Consulting will dis-cuss how to “reverse engineer” a cheese.

Mark Johnson with the Univer-sity of Wisconsin-Madison Center for Dairy Research (CDR) will talk about the sensory evaluation of cheese, followed by a session on sanitation.

The conference will also feature a hands-on cheesemaking class. It begins with two preparatory work-shops on Tuesday afternoon and will continue Wednesday from 7 a.m. until noon. The course will be taught by Ranee May with the University of Wisconsin-River Falls.

Because of the popularity of the cheesemaking class, there will also be an additional course on Thurs-day, Feb. 15.

Online registration is now open, and the early registration deadline is Jan. 12, 2018. Cost to attend prior to the deadline is $110 per person and $95 for members of the American Cheese Society (ACS).

Cost to attend the hands-on cheesemaking class is an additional $25 per person, as well as the food safety track. Cost to attend the Evening of Cheese on Feb. 13 is $10 per person. To register online, visit www.dairyheritage.com.

New Product SectionNew Dairy Products, Packaging, Promotions

Darigold Premieres New Hot Cocoa Milk Beverage For HolidaysSeattle, WA—A new Heat N’ Serve Hot Cocoa made with whole milk, cream, cocoa and liquid sugar has just been intro-duced by Darigold for the holi-days.

Darigold’s new Hot Cocoa is found in the refrigerated section of grocery stores throughout the Pacific Northwest now through March 2018, and can be heated three ways: on the stove top, in the microwave or with a milk steamer.

The new product is packaged in a resealable carton in both quart and half-gallon sizes.

“This hot cocoa has us ready for the cold weather,” said Randy Eronimous, Darigold senior director of marketing.

Consumers will have the opportunity to sample Darigold Heat N’ Serve Hot Cocoa at holiday events throughout the Pacific Northwest this winter, including Bothell’s Country Vil-lage Shop, the Mountlake Ter-race Tree Lighting Ceremony at Evergreen Playfield and the Woodinville Winterfest.

For more information, visit www.darigold.com.

Gouda, Muenster & Edam Added To Castello’s Line Of Yellow CheesesBasking Ridge, NJ—Castello brand announced recently the addition of three new cheeses to its “yellow cheese portfolio,” and an update to its packaging that includes a new visual “strength scale.”

Gouda, Muenster and Edam are now part of the Castello brand, and feature the updated packag-ing that was designed to help con-sumers know what cheese is right for them based on flavor notes and intensity.

One of the biggest barriers in the cheese category is consumers not knowing what a product will taste like, so our company cre-ated the “Strength Indicator” on its packaging – a number grading scale that runs one to six – mild to intense, Castello reported.

For more information, visit www.castellocheese.com.

Caputo Cheese Introduces Five Seasonal Cheeses For Holiday EntertainingChicago—Caputo Cheese Mar-ket here has stocked its shelves with seasonal favorites for holiday entertaining and gift-giving.

Caputo’s specialized gift platters include Goat Cheese with Cran-berry & Cinnamon; D’Affinois with Truffle; Caputo Ricotta Red; Sartori Bellavitano with Pepper-mint; and Challerhocker from the Swiss mountains.

The platters also include Capu-to’s signature cheeses – Parmigiano Reggiano and Pecorino Romano.

For more details or ordering information, visit www.caputo-cheesemarket.com.


MARKET PLACECLASSIFIED ADVERTISINGphone: (608) 246-8430 fax: (608) 246-8431e-mail: [email protected]

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Classified ads should be placed by Thursday for the Friday issue. Classi-fied ads charged $.75 per word. Clas-sified ads payable in advance. Display Classifieds charged per column inch. For information, call 608-246-8430.

1. Equipment for Sale

SEPARATOR NEEDS - Before you buy a separator, give Great Lakes a call. TOP QUALITY, reconditioned machines at the lowest prices. Call Dave Lam-bert, Great Lakes Separators at (920) 863-3306; [email protected].

MSA 200 WESTFALIA SEPARATOR. Just arrived. Perfect Bowl condition - NO PITTING. Two for sale. Call Great Lakes Separators at (920) 863-3306 or e-mail [email protected].

HIGH CAPACITY SEPARATOR: Alfa-Laval hmrpx 718 HGV hermetic separator. 77,000 pounds per hour sep-aration/110,000 pounds per hour stan-dardization. Call Great Lakes Separator at 920-863-3306 or email [email protected].

FOR SALE: Car load of 300-400-500 late model open top milk tanks. Like new. (262) 473-3530

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

2. Equipment Wanted

WANTED TO BUY: Westfalia or Alfa-Laval separators. Large or small. Old or new. Top dollar paid. Call Great Lakes Separators at (920) 863-3306 or email [email protected]

3. Products & Service

FOR SALE: Unique Corrugated Cow Print Gift Boxes for the Holidays or year-round Regular Cow Print. Different sizes available. Please con-tact: [email protected] or call Miranda at 608-798-2247. Please check out our website: dairy-landpackaging.com. We are your source for all packaging needs.

3. Products & Services

LOOKING FOR HARD-TO-FIND PRODUCTS OR SERVICES? Adver-tise your search here and on www.cheesereporter.com. For more informa-tion, contact Cheese Reporter by call-ing 608-246-8430 or by emailing [email protected]

4. Walls, Flooring

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

EXTRUTECH PLASTICS Sanitary POLY BOARD© panels provide bright white, non-porous, easily cleanable surfaces, perfect for non-food contact applications. CFIA and USDA accepted and Class A for smoke and flame. Call 888-818-0118 or epiplastics.com.

5. Real Estate

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

6. Promotion & Placement

PROMOTE YOURSELF - By con-tacting Tom Sloan & Associates. Job enhancement thru results oriented professionals. We place cheese mak-ers, production, technical, maintenance, engineering and sales management people. Contact Dairy Specialist David Sloan, Tom Sloan or Terri Sherman. Tom Sloan & Associates, Inc. PO Box 50, Watertown, WI 53094. Call: (920) 261-8890 or FAX: (920) 261-6357; or email: [email protected]

Looking for qualified candidates for your dairy operation? Advertise here to reach a targeted, qualified readership of current employees. Contact [email protected] or call 608-246-8430 for details.

7. Help Wanted

8. Positions Wanted

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

9. Consultants

10. Cheese & Dairy Products

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

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

14. Warehousing

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

For hard to find products, supplies or employees, visit

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

‘10 14.50 14.28 12.78 12.92 13.38 13.62 13.74 15.18 16.26 16.94 15.44 13.83‘11 13.48 17.00 19.40 16.87 16.52 19.11 21.39 21.67 19.07 18.03 19.07 18.77‘12 17.05 16.06 15.72 15.72 15.23 15.63 16.68 17.73 19.00 21.02 20.83 18.66‘13 18.14 17.25 16.93 17.59 18.52 18.02 17.38 17.91 18.14 18.22 18.83 18.95‘14 21.15 23.35 23.33 24.31 22.57 21.36 21.60 22.25 24.60 23.82 21.94 17.82‘15 16.18 15.46 15.56 15.81 16.19 16.72 16.33 16.27 15.82 15.46 15.30 14.44 ‘16 13.72 13.80 13.74 13.63 12.76 13.22 15.24 16.91 16.39 14.82 16.76 17.40 ‘17 16.77 16.88 15.81 15.22 15.57 16.44 15.45 16.57 16.36 16.69

HISTORICAL MILK PRICES: CLASS III

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

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Issue Date: 11/03/17

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November 1, 2017—AMS’ National Dairy Products Sales Report. Prices included are provided each week by manufacturers. Prices collected are for the (wholesale) point of sale for natural, unaged Cheddar; boxes of butter meeting USDA standards; Extra Grade edible dry whey; and Extra Grade and USPH Grade A nonfortified NFDM. •Revised

WEEK ENDINGStyle and Region Oct. 28 Oct. 21 Oct. 14 Oct. 7

40-Pound Block Cheddar Cheese Prices and Sales Weighted Price Dollars/PoundUS 1.7577 1.7491 1.6888• 1.6718 Sales Volume PoundsUS 11,710,544 10,581,411 10,857,462 11,321,980

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

Weighted Price Dollars/PoundUS 1.8147 1.8267 1.7931 1.7191 Weighted Price Adjusted to 38% Moisture US 1.7253 1.7383 1.7081 1.6371 Sales Volume PoundsUS 12,093,858 11,832,068 12,977,742 11,293,135Weighted Moisture Content PercentUS 34.79 34.85 34.91 34.89

Butter

Weighted Price Dollars/PoundUS 2.3462 2.3744• 2.3545 2.4170•Sales Volume PoundsUS 3,837,361 3,162,241• 3,592,550 3,353,680

Dry Whey Prices

Weighted Price Dollars/PoundsUS 0.3643 0.3882• 0.3682• 0.4038•Sales Volume US 8,667,412 7,075,957• 9,617,808• 6,658,272•

Nonfat Dry Milk

Average Price Dollars/PoundUS 0.7865 0.7971 0.8279• 0.8272Sales Volume PoundsUS 16,960,981 18,554,679• 17,218,003• 18,874,770•

DAIRY PRODUCT SALES

Class III - Cheese Milk Price 2016 2017PRICE (per hundredweight) $14.82 $16.69SKIM PRICE (per hundredweight) $7.92 $7.63

Class II - Soft Dairy Products 2016 2017PRICE (per hundredweight) $14.09 $15.95BUTTERFAT PRICE (per pound) $2.0563 $2.6716SKIM MILK PRICE (per hundredweight) $7.14 $6.84

Class IV - Butter, MP 2016 2017

PRICE (per hundredweight) $13.66 $14.85

SKIM MILK PRICE (per hundredweight) $7.92 $5.72

BUTTERFAT PRICE (per pound) $2.0493 $2.6646

NONFAT SOLIDS PRICE (per pound) $0.7469 $0.6357

PROTEIN PRICE (per pound) $2.2975 $2.1084

OTHER SOLIDS PRICE (per pound) $0.1351 $0.1853

SOMATIC CELL Adjust. rate (per 1,000 scc) $0.00079 $0.00086

AMS Survey Product Price Averages 2016 2017

Cheese, US 40-block, NASS $1.5830 $1.7254Butter, CME $1.8637 $2.3718Nonfat Dry Milk $1.5830 $0.8099Dry Whey $0.3303 $0.3790

Class Milk & Component PricesOctober 2016 with comparisons to October 2017

California 4a & 4b Milk Prices - October 2017 with comparisons to October 2016 Minimum Prices per cwt

Class Lb. Fat Lb. SNF 2016 20174a $2.5632 $0.6370 $13.11 $14.514b $2.5632 $0.8276 $14.43 $16.17

Commodity Market Prices 2016 2017Cheese, US 40-block, CME $1.5702 $1.7270AA Butter, CME $1.8333 $2.3480Nonfat Dry Milk (low/med. heat), West, USDA $0.9003 $0.8133Dry Whey (Mostly), West, USDA $0.3428 $0.3656

$1.25

$1.35

$1.45

$1.55

$1.65

$1.75

$1.85

$1.95

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

40-Pound Block Avg

CME vs AMS

DAIRY FUTURES PRICESSETTLING PRICE *Cash SettledDate Month Class III* Class IV* Dry Whey* NDM* Butter* Cheese*10-27 October 17 16.71 14.89 38.250 80.875 237.900 1.723010-30 October 17 16.71 14.89 38.400 80.750 237.750 1.723010-31 October 17 16.72 14.89 38.400 81.000 237.750 1.724011-1 October 17 16.69 14.85 37.900 80.990 237.180 1.725011-2 October 17 — — — — — —10-27 November 17 16.42 14.20 34.825 74.800 233.200 1.717010-30 November 17 16.54 14.15 35.125 74.275 232.100 1.725010-31 November 17 16.58 13.98 35.475 74.450 229.650 1.732011-1 November 17 16.63 13.90 35.475 74.750 227.075 1.738011-2 November 17 16.56 13.90 35.750 75.200 226.000 1.7350

10-27 December 17 15.81 14.20 32.725 74.425 235.325 1.665010-30 December 17 16.00 14.11 32.975 73.525 234.500 1.680010-31 December 17 15.98 14.04 33.150 73.750 232.750 1.681011-1 December 17 15.89 13.88 33.000 73.525 229.500 1.679011-2 December 17 15.73 13.93 31.925 74.025 227.000 1.6650

10-27 January 18 15.53 14.30 30.525 75.000 235.900 1.652010-30 January 18 15.70 14.23 31.250 74.500 235.500 1.664010-31 January 18 15.65 14.11 31.300 74.475 233.500 1.663011-1 January 18 15.54 14.00 30.800 74.425 233.000 1.659011-2 January 18 15.42 13.98 30.375 75.800 228.500 1.645010-27 February 18 15.44 14.38 29.650 76.400 235.600 1.644010-30 February 18 15.63 14.38 29.650 76.000 235.650 1.654010-31 February 18 15.55 14.11 30.100 75.625 234.400 1.656011-1 February 18 15.44 14.34 29.800 75.625 231.050 1.647011-2 February 18 15.33 14.04 29.450 74.650 229.250 1.639010-27 March 18 15.35 14.54 29.000 78.000 236.375 1.642010-30 March 18 15.48 14.54 29.000 77.750 236.375 1.649010-31 March 18 15.40 14.54 29.500 77.400 235.900 1.646011-1 March 18 15.25 14.49 29.500 77.500 232.500 1.636011-2 March 18 15.18 14.29 28.450 75.775 232.425 1.6290

10-27 April 18 15.39 14.69 28.750 79.900 237.000 1.645010-30 April 18 15.39 14.69 28.750 79.725 237.000 1.645010-31 April 18 15.35 14.69 29.000 79.300 237.000 1.646011-1 April 18 15.20 14.69 29.000 79.025 234.400 1.638011-2 April 18 15.16 14.64 28.475 78.000 234.000 1.6300

10-27 May 18 15.50 14.84 28.550 81.500 237.000 1.658010-30 May 18 15.50 14.84 28.550 81.000 237.125 1.658010-31 May 18 15.50 14.84 29.500 81.875 237.125 1.659011-1 May 18 15.39 14.84 29.425 80.900 235.000 1.650011-2 May 18 15.32 14.83 28.975 81.100 234.975 1.6440

10-27 June 18 15.71 15.01 29.000 83.250 237.450 1.676010-30 June 18 15.73 15.01 29.000 82.925 237.550 1.676010-31 June 18 15.74 15.01 29.750 83.925 237.550 1.677011-1 June 18 15.65 15.01 29.650 82.975 237.000 1.675011-2 June 18 15.62 15.01 29.150 82.975 236.975 1.6710

10-27 July 18 15.95 15.21 29.025 85.000 237.525 1.710010-30 July 18 15.97 15.21 29.025 84.625 237.250 1.710010-31 July 18 16.01 15.21 30.250 84.775 237.250 1.702011-1 July 18 15.95 15.21 30.025 84.775 237.675 1.697011-2 July 18 15.95 15.21 29.750 84.925 237.675 1.697010-27 August 18 16.08 15.40 29.000 87.000 237.400 1.726010-30 August 18 16.11 15.40 29.000 86.775 237.825 1.725010-31 August 18 16.14 15.40 29.925 86.775 238.000 1.718011-1 August 18 16.08 15.40 29.700 86.775 237.825 1.718011-2 August 18 16.09 15.40 29.250 87.125 237.825 1.7120

Interest - Nov. 2 21,481 2,176 2,975 6,536 4,761 19,587

CHEESE REPORTERNovember 3, 2017 Page 15

DAIRY PRODUCT MARKETSAS REPORTED BY THE US DEPARTMENT OF AGRICULTURE

WHOLESALE CHEESE MARKETS

WEEKLY COLD STORAGE HOLDINGSSELECTED STORAGE CENTERS IN 1,000 POUNDS - INCLUDING GOVERNMENT

DATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUTTER CHEESE

10/30/17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,471 94,60910/01/17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,728 106,524Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -8,257 -11,915

NATIONAL - OCT. 27: Cheese production in the East has eased, but it is fairly steady in the West and Midwest. Eastern milk intakes have slightly declined. Midwestern cheese mak-ers report increased spot milk availability. Spot milk prices ranged from $1 under to $1 over Class. Some contacts suggest increased NDM fortification within the cheese making process has put some downward pressure on spot milk prices. Demand is seasonally strong through-out the regions, particularly for Mozzarella and Provolone producers. Although cheese stocks remain a concern, the overall cheese market tone is fairly bullish.

NORTHEAST- NOV. 1: Cheese makers report production is running actively as milk in the Northeast is currently balanced to somewhat tight. Inventories are steady to strong, however some market participants have a concern that there may be a shortage of aged cheese in the upcoming months. Global trading is stable as the demand is fairly strong for US cheese pricing.

Wholesale prices, delivered, dollars per/lb:Cheddar 40-lb blocks: $2.1775 - $2.4625 Process 5-lb sliced: $1.8350 - $2.3150Muenster: $2.1625 - $2.5125 Swiss Cuts 10-14 lbs: $3.1625 - $3.4850

MIDWEST AREA - NOV. 1: Cheese demand has ebbed slightly for some midwestern cheese makers who had reported upswings in orders in recent weeks. However, other mid-western cheese contacts report sales remained fairly steady. Contacts suggest that holiday cheese orders have begun to taper a bit. Spot milk loads were slightly more difficult to locate. Spot milk prices ranged from flat to $1 over Class III. Some contacts expect that discounted milk prices will return during the holidays. Cheese makers continue to report that they are using nonfat dry milk in order to free up storage space and to circumvent the spot milk mar-ket. The cheese market tone has improved. The once large chasm between block and barrel prices on the CME has compressed into an interstice, and contacts generally believe this to be a bullish indicator of general market health.

Wholesale prices delivered, dollars per/lb: Process 5# Loaf: $1.7900 - $2.1500Brick/Muens 5# Loaf: $2.0850 - $2.5100 Cheddar 40# Block: $1.8125 - $2.2075Monterey Jack 10#: $2.0600 - $2.2650 Blue 5# Loaf: $2.3525 - $3.3400Mozzarella 5-6# (LMPS): $1.8850 - $2.8250 Grade A Swiss 6-9#: $2.6800 - $2.7975

WEST - NOV. 1: In the West, the cheese market seems to be following its normal sea-sonal trend for this time of the year. Contacts suggest that current cheese prices are set at a premium to CME, but they still remain lower compared to last year’s prices at the same period. Prices are projected to stay firm throughout the month of November. Cheese produc-tion is steady. However, supplies are substantial, but are not causing any major concern for the industry at the moment. Overall, current international sales are good and manufacturers hope that they will help in reducing the inventories. Cheese sales are active in the domestic market as the pizza season draws more loads of Mozzarella. The football season at many schools has also created an increased cheese intake. The US average advertised retail price for an 8-ounce pack of natural shredded cheese is $2.28, down $.07 from last week. Packs average $2.54 in the Southwest and $2.79 in the Northwest. One year ago, the national price was $2.22. For 8-ounce blocks, the US price is $2.20, down $.14 from last week.

Wholesale prices delivered, dollars per/lb: Process 5# Loaf: $1.7775 - $2.0350Cheddar 40# Block: $1.8450 - $2.2900 Cheddar 10# Cuts: $2.0250 - $2.2450Monterey Jack 10#: $2.0350 - $2.1950 Grade A Swiss 6-9#: $2.7400 - $3.1700

FOREIGN -TYPE CHEESE - NOV. 1: In August, as milk deliveries increased in the EU, so did cheese production rise by 2.4 percent on average compared to last year at the same period. The market for sliced cheese is currently balanced. However, buyers are still taking the wait-and-see attitude toward the market as discussions about cheese prices intensify. Cheese prices are currently slightly weaker and non-uniform. In Germany, cheese demand from food retailers and the industry is steady. EU cheese export opportunities are currently challenged by unfavorable exchange rate and better offers from the USA.

Selling prices, delivered, dollars per/lb: Imported DomesticBlue: $2.6400 - 5.2300 $2.2300 - 3.7175Gorgonzola: $3.6900 - 5.7400 $2.7375 - 3.4550Parmesan (Italy): 0 $3.6200 - 5.7100Romano (Cows Milk): 0 $3.4200 - 5.5700Sardo Romano (Argentine): $2.8500 - 4.7800 0Reggianito (Argentine): $3.2900 - 4.7800 0Jarlsberg (Brand): $2.9500 - 6.4500 0Swiss Cuts Switzerland: 0 $3.2000- 3.5225Swiss Cuts Finnish: $2.6700- 2.9300 0

NATIONAL - OCT. 27: Upcoming holi-day needs are arising as retailers are stock-ing their coolers with butter, although retail butter sales are mixed this week. Spot mar-ket prices are lower and some butter pro-ducers report that purchasers are managing their buying to avoid an anticipated price increase. The demand is mixed as some butter producers report solid demand while others have relayed that sales are slightly under expectations. Overall, a number of processors believe that they will remain at a stable level up to Thanksgiving week. Cream availability is generally adequate for contract and spot needs. Production is active as but-ter is continuously being churned for retail and bulk supplies. The market tone is weak and butter contacts’ anxieties regarding the market tone remain, as prices are below expectations and continuing downward.

NORTHEAST - NOV. 1: This week, pro-duction in the East is constant at moderate rates for some butter operations, although churns at a few balancing plants are inactive. Cream surpluses, a driver of the abovemen-tioned condition, are not as available in the market as Class II needs place a demand on available cream supplies. Packaging opera-tions are modest to slow, with the bigger part of holiday orders completed. Bulk but-ter stocks appear to dwarf domestic interest at this point, while butter prices continue to ease at the CME, an indicator of the market

tone. Market sources note an escalation in buyers/sellers inquiries relative to unsalted butter, as the outlook for exporting abounds around less competitive pricing.

CENTRAL - NOV. 1: Cream continues to be available for Central region butter pro-ducers. Cream loads from across the nation are finding their way into upper midwestern butter churns at prices reasonable to buy-ers. Some butter producers report return-ing some cream onto the spot market in lieu of churning, as Class II and III cream demand is healthy in the Midwest. Butter market prices are experiencing some down-ward pressure. Contacts suggest weaken-ing European butter markets are bringing US market prices down. However, contacts point out that current market prices are well above recent years’ averages.

WEST - NOV. 1: Butter makers report holiday orders are upon them. Although buy-ers are still somewhat restrained, processors declare with apodictic authority that shop-pers will buy according to their holiday needs regardless. End users have taken a slow, steady draw to cover their butter needs, often watching their own inventories and prices closely to better manage orders. Butter cus-tomers are ramping up their requests ahead of Thanksgiving, but then may slow their orders to re-evaluate needs for the final Q4 holiday push.

ORGANIC DAIRY - RETAIL OVERVIEW

Dairy advertisements increased with the oncoming holiday season, as a few prices edged lower for dairy items this week compared to last week. Total conventional dairy ads grew 11 percent and organic dairy ads are vastly higher, 226 percent. Conventional eggnog, quart sizes, increased in ads, up 153 percent from last week. The weighted average price for half-gallon conventional eggnog was $2.98, dropping 94 cents from last week. The US weighted average advertised price for conventional butter in 1-pound packages was $3.49, down 14 cents compared to last week. Meanwhile, the US weighted average ad price for organic butter, 1-pound package, $4.78, declined 51 cents for an organic premium of $1.29. Total conventional cheese advertisements decreased 5 percent from last week. Organic cheese ads swelled 30 times higher than last week’s numbers. The US advertised price for 8-ounce conventional cheese blocks averaged $2.34, while organic 8-ounce cheese blocks saw a $3.99 average, with an organic premium of $1.65. Ads for 8-ounce organic cheese blocks grew a whopping 1,376 percent.

National Weighted Retail Avg Price: Butter 1 lb: $4.78Cheese 8 oz block: $3.99Cheese 8 oz shred: $3.49Cream Cheese 8 oz: $2.34Greek Yogurt 4-6 oz: $1.00

Greek Yogurt 32 oz: $3.50Yogurt 4-6 oz: $0.80Yogurt 32 oz: $3.39Milk ½ gallon: $3.73Milk gallon: $6.10Milk UHT 8 oz: $0.75

RETAIL PRICES - CONVENTIONAL DAIRY - NOVEMBER 3Commodity

Butter 1#

Cheese 8 oz block

Cheese 1# block

Cheese 2# block

Cheese 8 oz shred

Cheese 1# shred

Cottage Cheese

Cream Cheese

Ice Cream 48-64 oz

Egg Nog quart

Egg Nog ½ gallon

Milk ½ gallon

Milk gallon

Sour Cream 16 oz

Yogurt (Greek) 4-6 oz

Yogurt (Greek) 32 oz

Yogurt 4-6 oz

Yogurt 32 oz

US NE SE MID SC SW NW

3.49 3.93 3.63 2.87 2.73 3.17 3.99

2.34 2.53 2.35 1.86 2.56 2.81 1.25

3.70 3.99 4.48 3.32 3.19 2.88 NA

6.24 NA 6.48 NA NA 5.99 NA

2.22 2.38 2.41 1.89 2.21 2.19 1.79

3.26 4.32 2.99 2.99 2.99 2.88 3.99

1.96 2.43 1.77 1.80 NA 1.84 1.45

2.03 1.68 2.23 1.95 2.04 1.75 2.00

3.23 3.00 3.30 3.06 3.69 3.01 3.58

2.69 2.99 NA NA NA 2.50 NA

2.98 NA 2.99 2.99 2.99 NA NA

1.95 3.65 1.17 2.50 1.07 NA NA

2.79 4.38 2.49 2.12 2.51 2.54 1.99

1.68 1.78 1.54 1.82 1.53 1.68 NA

1.11 1.44 1.00 .94 .94 .92 1.06

4.71 4.51 4.78 4.37 4.98 4.99 4.59

.54 .52 .51 .56 .57 .57 .47

2.29 2.39 2.00 1.92 2.39 2.60 2.71

Butter 1# 3.49 3.93 3.63 2.87 2.73 3.17 3.99

Cheese 1# block 3.70 3.99 4.48 3.32 3.19 2.88 NA

Cheese 8 oz shred 2.22 2.38 2.41 1.89 2.21 2.19 1.79

Cottage Cheese 1.96 2.43 1.77 1.80 NA 1.84 1.45

Ice Cream 48-64 oz 3.23 3.00 3.30 3.06 3.69 3.01 3.58

Egg Nog ½ gallon 2.98 NA 2.99 2.99 2.99 NA NA

Milk gallon 2.79 4.38 2.49 2.12 2.51 2.54 1.99

Yogurt (Greek) 4-6 oz 1.11 1.44 1.00 .94 .94 .92 1.06

Yogurt 4-6 oz .54 .52 .51 .56 .57 .57 .47

US: National Northeast (NE): CT, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VT;Southeast (SE): AL, FL, GA, MD, NC, SC, TN, VA, WV; Midwest (MID): IA, IL, IN, KY, MI, MN, ND, NE, OH, SD, WI; South Central (SC): AK, CO, KS, LA, MO, NM, OK, TX; Southwest (SW): AZ, CA, NV, UT; Northwest (NW): ID, MT, OR, WA, WY

NATIONAL - CONENTIONAL DAIRY PRODUCTS

NONFAT DRY MILK - NOVEMBER 2NDM - CENTRAL: Low/medium heat NDM prices in the Central region declined on the bottom of the range and on both ends of the mostly price series. Low/medium heat producers report that many buyers are disinterested, as their invento-ries are sufficient and/or they simply have the option to wait for the eventuality of price decreases. That being said, spot market activity, although quieter than last week, was still livelier compared to earlier in the month of October. Low/medium heat NDM production has slowed, as seasonal selections such as high heat NDM and but-termilk powder are being dried. However, inventories of low/medium heat NDM are available. The NDM market tone is bear-ish. High heat NDM prices are unchanged. Spot activity of high heat NDM was fairly quiet. High heat inventories are available.

NDM - EAST: Eastern prices for low/medium NDM moved lower in both DMN f.o.b. pricing series. In this unsettled mar-ket, the level of trading market participants are expecting has yet to be seen as buyers hesitate on making significant purchases

while waiting for prices to move at/near a bottom. Meanwhile, supplies continue to expand on steady drying activity. Sources note that storage is almost a challenge for some processors. While domestic demand appears moderate with NDM loads mov-ing primarily through contracted accounts, producers are keeping a sharp eye on current happenings in the global market, particularly China, as powder imports increased.

NDM - WEST: The low/medium heat NDM market tone is unsteady, partly due to the uncertain future of the intervention in Europe, according to some contacts. Nev-ertheless, NDM requests from the bakery sector are active ahead of the year-end holiday needs. The Mexican demand for NDM/SMP is still active. However, that country is receiving attractive offers from Europe, which is putting some pressure on national processors’ competiveness. In the west region, low/medium heat NDM f.o.b. spot prices are lower on moderate trading. NDM futures appear to be stagnant at mid-70 cents per pound.

WHOLESALE BUTTER MARKETS


CME CASH PRICES - OCT. 30 - NOV. 3, 2017Visit www.cheesereporter.com for daily prices

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

MONDAY $1.7100 $1.7500 $2.2700 $0.7500 October 30 (+½) (+½) (-3¼) (NC)

TUESDAY $1.7325 $1.7600 $2.2500 $0.7325 October 31 (+2¼) (+1) (-2) (-1¾)

WEDNESDAY $1.7400 $1.7600 $2.2400 $0.7225 November 1 (+¾) (NC) (-1) (-1)

THURSDAY $1.7150 $1.7400 $2.2225 $0.7250 November 2 (-2½) (-2) (-1¾) (+¼)

FRIDAY $1.7150 $1.7150 $2.2325 $0.7200November 3 (NC) (-2½) (+1) (-½)

Week’s AVG $1.7225 $1.7450 $2.2430 $0.7300 Change (+0.0285) (+0.0250) (-0.0485) (-0.0185)

Last Week’s $1.6940 $1.7200 $2.2915 $0.7485AVG

2016 AVG $1.7755 $1.8310 $1.8840 $0.8685Same Week

MARKET OPINION - CHEESE REPORTERCheese Comment: There were no block sales on Monday; the price increased on an unfilled bid for 1 car at $1.7500. Two cars of blocks were sold Tuesday, both on offers at $1.7600, which raised the price. Wednesday’s block market activity was limited to uncovered offers of 2 cars at $1.7700, which left the price unchanged at $1.7600. On Thursday, 1 car of blocks was sold on an offer at $1.7325; an unfilled bid for 1 car at $1.7400 then set the price. No blocks were sold Friday; the price fell on an uncovered offer of 1 car at $1.7150. The barrel price increased Monday on offer-based sales of 3 cars at $1.7100, rose Tuesday on a bid-based sale of 1 car at $1.7325, increased Wednesday on an offer-based sale of 1 car at $1.7400, then fell Thursday on bid-based sales of 2 cars at $1.7150.

Butter Comment: The butter price fell Monday on a bid-based sale of 1 car at $2.2700, declined Tuesday on sales of 3 cars at $2.2500, fell Wednesday on an offer-based sale of 1 car at $2.2400, declined Thursday on an offer-based sale of 1 car at $2.2225, then rose Friday on a bid-based sale of 1 car at $2.2325.

NDM Comment: The price fell Tuesday on sales of 3 cars at 73.25 cents, dropped Wednesday on sales of 6 cars at 72.25 cents, rose Thursday on an unfilled bid at 72.5 cents, and fell Friday on an unfilled bid at 72.0 cents (after a sale at 71.5 cents).

WHEY MARKETS - OCT. 30 - NOV. 3, 2017RELEASE DATE - NOVEMBER 2, 2017

Animal Feed Whey—Central: Milk Replacer: .1800 (NC) – .3000 (-2)

Buttermilk Powder: Central & East: .8500 (NC) – .9000 (NC) West: .7400 (-5) – .8500 (-5) Mostly: .8000 (NC) – .8200 (-3)

Casein: Rennet: 2.4975 (NC) – 2.8500 (NC) Acid: $3.3500 (NC) - $3.4500 (NC)

Dry Whey—Central (Edible): Nonhygroscopic: .2500 (NC) – .3900 (-1) Mostly: .2800 (-2) – .3600 (NC) Dry Whey–West (Edible): Nonhygroscopic: .2700 (NC) – .4100 (NC) Mostly: .3000 (-2) – .3700 (-½)

Dry Whey—NE: .2900 (NC) — .4000 (NC)

Lactose—Central and West: Edible: .1800 (NC) –.3950 (-4½) Mostly: .2000 (NC) –.3000 (NC)

Nonfat Dry Milk —Central & East: Low/Medium Heat: .7500 (-2) – .8800 (NC) Mostly: .7900 (-2) –.8500 (-1) High Heat: .9500(NC) – 1.0300 (NC)

Nonfat Dry Milk —Western: Low/Medium Heat: .6700 (-2) – .8500 (-2) Mostly: .7200 (-2) –.8200 (-2) High Heat: .9000 (-5) – $.9900 (-2)

California Weighted Average NFDM: Price Total Sales Oct. 27 $0.7712 8,529,512 Oct. 20 $0.7759 9,238,508 Whey Protein Concentrate—Central and West: Edible 34% Protein: .7000 (NC) – 1.0000 (NC) Mostly: .7200 (NC) – .8600 (-¾)

Whole Milk—National: 1.3300 (NC) – 1.4800 (NC) Visit www.cheesereporter.com for dairy and historical cheese, butter, and whey prices


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

‘‘08 1.2246 1.2088 1.3454 1.3905 1.4750 1.5001 1.5385 1.6279 1.6973 1.7320 1.6165 1.2007‘09 1.1096 1.1097 1.1770 1.2050 1.2526 1.2235 1.2349 1.2000 1.2199 1.2830 1.5008 1.3968‘10 1.3950 1.3560 1.4641 1.5460 1.5896 1.6380 1.7787 1.9900 2.2262 2.1895 1.9295 1.6327‘11 2.0345 2.0622 2.0863 1.9970 2.0724 2.1077 2.0443 2.0882 1.8724 1.8295 1.7356 1.6119‘12 1.5077 1.4273 1.4895 1.4136 1.3531 1.4774 1.5831 1.7687 1.8803 1.9086 1.7910 1.4848‘13 1.4933 1.5713 1.6241 1.7197 1.5997 1.5105 1.4751 1.4013 1.5233 1.5267 1.6126 1.5963‘14 1.7756 1.8047 1.9145 1.9357 2.1713 2.2630 2.4624 2.5913 2.9740 2.3184 1.9968 1.7633‘15 1.5714 1.7293 1.7166 1.7937 1.9309 1.9065 1.9056 2.1542 2.6690 2.4757 2.8779 2.3318‘16 2.1214 2.0840 1.9605 2.0563 2.0554 2.2640 2.2731 2.1776 1.9950 1.8239 1.9899 2.1763‘17 2.2393 2.1534 2.1392 2.0992 2.2684 2.5688 2.6195 2.6473 2.4370 2.3293

HISTORICAL MONTHLY AVG BUTTER PRICES

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Restaurant Performance Index Rose 0.5% In September; Operators More Optimistic About Future ProspectsWashington—The National Restaurant Association’s Restau-rant Performance Index (RPI), a monthly composite index that tracks the health of and outlook for the US restaurant industry, stood at 100.7 in September, up 0.5 percent from August, the asso-ciation reported Tuesday.

The RPI is constructed so that the health of the restaurant indus-try is measured in relation to a steady-state level of 100. Index values above 100 indicate that key industry indicators are in a period of expansion, while index values below 100 represent a period of contraction for key indicators.

The RPI consists of two compo-nents: the Current Situation Index and the Expectations Index. The Current Situation Index, which measures current trends in four industry indicators, stood at 99.9 in September, down from August.

Restaurant operators contin-ued to report mixed same-store sales results in September. Some 40 percent of operators reported a

same-store sales increase between September 2016 and September 2017, virtually unchanged from August, while 39 percent reported a same-store sales decline in Sep-tember, also virtually unchanged from August.

Restaurant operators reported a net decline in customer traffic for the sixth straight month. Some 27 percent of operators reported an increase in customer traf-fic between September 2016 and September 2017, while 46 percent reported a traffic decline.

The Expectations Index, which measures restaurant operators’ six-month outlook for four indus-try indicators, stood at 101.6 in September, up 1.1 percent from August.

Restaurant operators are some-what more optimistic that business conditions will improve in the months ahead. Some 33 percent of operators expect to have higher sales in six months (compared to the same period in the previ-ous year), up from 29 percent in August.

Only 8 percent of operators expect their sales volume in six months to be lower than it was dur-ing the same period in the previous year, while 59 percent of operators think their sales will remain about the same.

since 1876 w s l y cheese reporter 3, 2017.pdfbetin, jacqueline brassier, arnaud solandt and jean...

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