Bipartisan Group Of Lawmakers Concerned With Some FDA Raw Milk Cheese Policies

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CHEESE REPORTER

Farm-Level Organic Milk Sales In 2015: $1.2 Billion, Up 8.4% From ‘14

fornia, 45,584 cows; Wisconsin, 26,553 cows; New York, 22,102 cows; Oregon, 15,160 cows; Penn-sylvania, 14,570 cows; and Ver-mont, 12,377 cows.

Five additional states had more than 5,000 certified organic milk cows at the end of last year: Idaho, 6,096 cows; Indiana, 7,002 cows; Minnesota, 9,471 cows; Ohio, 8,301 cows; and Washington, 6,419 cows.

Organic milk production in the US last year totaled 3.406 billion pounds, with a value of $1.174 bil-lion.

Leading states in the production of organic milk last year, along with the value of that organic milk, was as follows:

California: 747.3 million pounds, valued at $254.3 million.

Wisconsin: 370.7 million pounds, valued at $124.7 million.

New York: 278 million pounds, with a value of $99 million.

Oregon: 251.1 million pounds, with a value of $83.2 million.

Pennsylvania: 190.9 million pounds, with a value of $67.4 mil-lion.

• See Organic Milk, p. 10

Italy’s Nuova Castelli Group To Purchase New York-Based Empire Specialty CheeseAlbany, NY—Empire State Development (ESD), New York state’s economic development agency, announced Tuesday that Nuova Castelli Group, an Italian cheese company, will invest sev-eral million dollars to purchase the Empire Specialty Cheese manufac-turing plant in Chautauqua county and acquire new machinery and equipment for the facility.

The acquisition will retain the 80 full-time positions that were at risk in Ashville, as well as safe-guard the relationships with more than 90 local milk suppliers, ESD noted.

The balance of milk used at the plant comes from local farmers, including Amish farmers who rely

• See Castelli America, p. 8

US Milk Production Increased 1.9% In Aug.; Cow Numbers Up 15,000 Head From July; Texas Tops PennsylvaniaWashington—US milk produc-tion in the 23 reporting states during August totaled 16.661 bil-lion pounds, up 1.9 percent from August 2015, USDA’s National Agricultural Statistics Service (NASS) reported Tuesday.

July’s milk production esti-mate was revised up by 48 million pounds, so July’s output in the 23 reporting states was up 1.7 percent from July 2015, rather than up 1.4 percent as initially estimated.

Production per cow in the 23 reporting states averaged 1,920 pounds for August, 26 pounds above August 2015.

The number of milk cows on farms in the 23 reporting states in August was 8.676 million head, 43,000 head more than August 2015 and 15,000 head more than July 2016. August marked the sec-ond straight month in which milk cow numbers in the 23 report-ing states increased by more than 10,000 head from the previous month; July cow numbers were up 14,000 head from June.

For the US as a whole, August milk production totaled 17.735 billion pounds, up 1.9 percent from August 2015. Production per cow in the US during August averaged 1,895 pounds, 27 pounds above August 2015.

The number of milk cows on farms in the United States during August was 9.36 million head,

• See 1.9% More Milk, p. 6

Nontoxigenic E. Coli Standard, 60-Day Aging Rule Raise ConcernsWashington—A bipartisan group of 13 Senate and House mem-bers recently wrote to Stephen Ostroff, deputy commissioner for foods and veterinary medicine at the US Food and Drug Adminis-tration (FDA), concerning two issues: FDA’s nontoxigenic E. coli standard, and the 60-day aging threshold for raw milk cheeses.

Members of Congress have pre-viously written to FDA expressing concern that the nontoxigenic E. coli standards for raw milk cheese contained in the latest edition of the FDA Compliance Program Guidance Manual and Compli-ance Policy Guide “could have a detrimental impact on cheese

producers” despite a lack of evi-dence that these cheeses present a public health risk, US Sens. Pat-rick Leahy (D-VT), Bernie Sand-ers (I-VT), and Tammy Baldwin (D-WI), along with US Reps. Peter Welch (D-VT), Jared Huff-man (D-CA), Morgan Griffith (R-VA), Joe Courtney (D-CT), Ann McLane Kuster (D-NH), F. James Sensenbrenner, Jr. (R-WI), Ron Kind (D-WI), Mark Pocan (D-WI), Chellie Pingree (D-ME) and Tony Cardenas (D-CA) said in their letter to Ostroff.

The lawmakers said they have found FDA to be an “engaged partner” in resolving this mat-ter, and appreciate the Obama administration’s opennesss to meeting with stakeholders and listening to their concerns. They

• See Raw Milk Cheese, p. 11

Certified Organic Milk Production Totaled 3.4 Billion Pounds In ‘15Washington—Milk was the lead-ing commodity in certified organic sales last year, with sales totaling $1.174 billion, up 8.4 percent from 2014, according to a recent report from USDA’s National Agricul-tural Statistics Service (NASS).

The 2015 Certified Organic Survey showed that 12,818 certi-fied organic farms in the US sold a total of $6.2 billion in organic products last year, up 13 percent from 2014.

The survey is the fourth organic production survey and the second certified organic only production survey conducted at the state and national levels by NASS.

The 2015 Certified Organic Survey collected certified organic crop information for acreage har-vested, quantity produced, quan-tity sold, and value of sales for field crops, vegetables, fruits, tree nuts, berries, and horticulture, as well as inventory, quantity sold, and value of sales for livestock, poultry and livestock products, including dairy.

According to the NASS report, there were 2,282 certified organic farms with milk cows last year. Leading states in the number of organic farms with milk cows last year were: Wisconsin, 439 farms; New York, 387 farms; Pennsylva-nia, 275 farms; Indiana, 183 farms; Vermont, 182 farms; Ohio, 181 farms; Minnesota, 104 farms; and California, 95 farms.

In addition to California, Wis-consin, New York, Pennsylvania and Minnesota, states in the top 10 in overall milk production had the following number of farms with organic milk cows last year: Idaho, 16 farms; Michigan, 53 farms; New Mexico, one farm; Texas, four farms; and Washington, 30 farms.

In addition to New Mexico, the states of Alabama, Arizona, Dela-ware, Hawaii, Montana, Nevada, Oklahoma, South Dakota and Wyoming each had just one farm with certified organic milk cows last year.

As of December 31, 2015, there were 229,197 certified organic milk cows in the US. Leading states in the number of organic milk cows as of December 31, 2015, were: Cali-

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Milk Per CowPound per cow change fromSelect States July 2016 vs July 2015

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the so-called health establishment had at least a couple of industries working in the background, conspir-ing to pin all sorts of ills on dairy and other products that contained dietary fat in general and saturated fat in par-ticular.

Past Issues Read this week’s issue or past issues of Cheese Reporter on your mobile phone or tablet by scanning this QR code.

The One-Two Punch That Devastated Dairy

D I C K G R O V E S

Publisher / EditorCheese Reportere: dgroves@cheesereporter.comtw: @cheesereporter

EDITORIAL COMMENT

It hasn’t always been easy trying to market dairy products over the past 60 years or so, what with dairy products coming under criticism for numerous alleged nutrition-related offenses, ranging from saturated fat and cholesterol to sodium.

During this period, it’s often seemed like it was the dairy indus-try versus the health establishment, and the health establishment kept coming up with more reasons to avoid dairy products, or at least reduce consumption of traditional (full-fat) dairy products.

As it turns out, the so-called health establishment had at least a couple of industries working in the background, conspiring to pin all sorts of ills on dairy and other products that contained dietary fat in general and saturated fat in particular. Those industries were the vegetable oil industry and the sugar industry.

The role of the vegetable oil industry (or companies marketing such products) in shaping the con-nection between saturated fats and heart disease is detailed in Nina Teicholz’s 2014 book, The Big Fat Surprise. The “real heavyweights” in shaping federal nutrition policy back in the 1970s wasn’t the dairy, egg and meat groups, but rather the “big food manufacturers,” such as General Foods, Quaker Oats, Heinz, the National Biscuit Com-pany and the Corn Products Refin-ing Corporation, Teicholz wrote.

In 1941, these companies had set up the Nutrition Foundation, which “steered the course of sci-ence at its very source by devel-oping relationships with academic researchers, funding important sci-entific conferences, and funneling many millions of dollars directly into research,” Teicholz wrote.

“The promotion of carbohy-drate-based foods, such as cereals, breads, crackers, and chips, was exactly the kind of dietary advice large food companies favored, since those were the products they sold,” she continued. “Recommending polyunsaturated oils over saturated fats also served them well because

these oils were a major ingredient of their cookies and crackers and were the principal ingredient in their margarines and shortenings.”

Among the other results from this push: “From the early 1960s, consumers were advised to replace butter with margarine or Crisco and always to choose vegetable oils over animal fats as part of a healthy, prudent diet,” Teicholz noted.

In her book, Teicholz also touches upon the other “enemy” of the dairy industry over the past half-century or more: the sugar industry. In 1999, when the lead Italian researcher from the infa-mous “Seven Countries” study went back and looked at the data from the study’s 12,770 subjects, he noticed that the category of foods that best correlated with coronary mortality was sweets, more specifi-cally sugar products and pastries.

That brings us to 2016, when, as reported on our front page last week, a report published online by JAMA Internal Medicine suggests that the sugar industry sponsored research to influence the scientific debate to cast doubt on the hazards of sugar and to promote dietary fat as the culprit in heart disease.

The report describes how the sugar industry sought to influence the debate over the dietary causes of coronary heart disease in the 1950s and 1960s. And so, by the 1980s, few scientists believed that added sugars played a significant role in CHD, and the first Dietary Guidelines for Americans, published in 1980, focused on reducing total fat, saturated fat, and dietary cho-lesterol for CHD prevention.

The internal documents used for the report released last week indicate that the Sugar Research Foundation, which later evolved into the Sugar Association, initi-ated CHD research in 1965 and its first project was a literature review published in the New England Jour-nal of Medicine in 1967.

That review concluded there was “no doubt” that the only dietary intervention required to

prevent CHD was to reduce dietary cholesterol and substitute polyun-saturated fat for saturated fat in the US diet. That review was pub-lished “without disclosure of the sugar industry’s funding or role.”

So there you have it: the veg-etable oil industry and the sugar industry have been conspiring for years against dietary fat, satu-rated fat and products that contain them, including dairy.

How did their efforts impact the dairy industry? For one thing, per capita butter consumption fell from a peak of over 17 pounds for a number of years back during the first 40-plus years of the 20th cen-tury to under six pounds by 1966 and under five pounds for every year from 1972 through 2007 (with the exception of 1984, when con-sumption reached five pounds). Thanks to that drop in consump-tion, the US butter production record, 1.872 billion pounds, was set way back in 1941.

And sales of whole milk fell from a peak of 44.7 billion pounds in 1966 to less than 20 billion pounds by 1993 and a recent low of 13.9 billion pounds in 2013.

Fortunately for the dairy indus-try, there have been at least a cou-ple of positive developments in recent years. First, Nina Teicholz’s book, the JAMA Internal Medicine report and others are shedding new light on the industry influence that long shaped dietary advice. And that advice is slowly changing, as health professionals and others realize how wrong the “saturated-fat-is-bad” mantra really was.

Second, per capita butter con-sumption and whole milk sales are on the upswing, as consumers begin to realize that saturated fat isn’t the dietary villain it’s been purported to be and taste wins out. The health establishment contin-ues to lag on this realization, but eventually, science will win out, and so will full-fat dairy products.

If you don’t believe the pendu-lum is swinging back toward satu-rated fat, just ask somebody in the margarine business. DG

CHEESE REPORTERSeptember 23, 2016 Page 3

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Global Dairy Trade Price Index Increases 1.7%; Only Whole Milk Powder Price DeclinesBy End Of Third Quarter, GDT Price Index 31% Higher Than At End Of Second Quarter; All Prices HigherAuckland, New Zealand—The price index on this week’s semi-monthly Global Dairy Trade (GDT) dairy commodity auction increased 1.7 percent from the pre-vious auction, held two weeks ago.

In this week’s auction, which featured 175 participating bidders and 129 winning bidders, prices were higher for Cheddar cheese, skim milk powder, butter, anhy-drous milkfat, rennet casein, lac-tose and buttermilk powder and lower for whole milk powder.

Results from this week’s GDT trading event, with comparisons to the trading event held two weeks ago, were as follows:

Cheddar cheese: The aver-age winning price was $3,518 per metric ton ($1.60 per pound), up 2.2 percent. Average winning prices were: Contract 1 (October), $3,840 per ton, down 1 percent; Contract 2 (November), $3,656 per ton, up 9.2 percent; Contract 3 (December), $3,448 per ton, down 0.6 percent; Contract 4 (January), $3,383 per ton, down 1.5 percent; and Contract 5 (February), $3,645 per ton), up 2.8 percent.

Skim milk powder: The aver-age winning price was $2,293 per ton ($1.04 per pound), up 3 per-cent. Average winning prices were: Contract 1, $2,285 per ton, down 0.4 percent; Contract 2, $2,272 per ton, up 2.5 percent; Contract 3, $2,313 per ton, up 3.1 percent; Contract 4, $2,294 per ton, up 2.5; Contract 5, $2,319 per ton, up 4.8 percent; and Contract 6 (March), $2,390 per ton, up 6.9 percent.

WMP: The average winning price was $2,782 per ton ($1.26 per pound), down 0.2 percent. Aver-age winning prices were: Contract 1, $2,983 per ton, up 4.5 percent; Contract 2, $2,768 per ton, down 1.2 percent; Contract 3, $2,864 per ton, up 2.8 percent; Contract 4, $2,711 per ton, down 1.4 per-cent; Contract 5, $2,695 per ton, down 2.3 percent; and Contract 6, $2,845 per ton, down 4.9 percent.

Butter: The average winning price was $3,892 per ton ($1.77 per pound), up 3.6 percent. Aver-age winning prices were: Contract 1, $3,934 per ton, down 2 percent; Contract 2, $3,778 per ton, up 0.3 percent; Contract 3, $3,980 per ton, up 7.3 percent; Contract 4, $3,925 per ton, up 5.9 percent; Contract 5, $3,980 per ton, up 6.3 percent; and Contract 6, $3,990 per ton, up 6.8 percent.

Anhydrous milkfat: The aver-age winning price was $4,998 per ton ($2.27 per pound), up 4.6 percent. Average winning prices

were: Contract 1, $5,191 per ton, up 7.3 percent; Contract 2, $4,999 per ton, up 5.5 percent; Contract 3, $4,954 per ton, up 3.6 percent; Contract 4, $4,941 per ton, up 3.2 percent; Contract 5, $5,031 per ton, up 4.1 percent; and Contract 6, $5,076 per ton, up 5.3 percent.

Rennet casein: The average winning price was $6,893 per ton ($3.13 per pound), up 2 percent. Average winning prices were: Contract 1, $6,909 per ton, up 2.6 percent; Contract 2, $6,905 per ton, up 2; Contract 3, $6,878 per ton, up 0.9 percent; and Contract 4, $6,877 per ton, up 3.3 percent.

Lactose: The average winning price was $815 per ton (37 cents per pound), up 3.7 percent. That was for Contract 2.

Buttermilk powder: The aver-age winning price was $2,276 per ton ($1.03 per pound), up 7 per-cent. Average winning prices were: Contract 2, $2,285 per ton, up 7.3 percent; Contract 3, $2,255 per ton, up 4.6 percent; and Contract 4, $2,300 per ton, up 11.7 percent.

All Prices Up In Third QuarterBy the end of the third quarter, the GDT price index was 31 percent

higher than it was at the end of the second quarter, according to GDT’s “Quarterly” report, which was released after this week’s trad-ing event.

Following an flat price index across the first two trading events in the third quarter, the following four trading events, including this week’s auction, showed increases amounting to an average change in the index per trading event of 4.7 percent over the third quarter.

Price indices for all eight prod-ucts were higher in the third quarter compared to the second quarter. The increase in price indi-ces between the third and second quarters ranged from 38.9 percent for anhydrous milkfat to 7.6 per-cent for lactose.

Price indices for all products were also higher on an annual basis. Lactose and anhydrous milk-fat showed the most significant annual increases, at 65.7 percent and 46.4 percent, respectively.

The third quarter witnessed an 11 percent higher average rate of participation per event, compared with the second quarter.

Consistent with previous quar-ters, skim milk powder and whole milk powder attracted the highest number of participating bidders, with each product category attract-ing 145 bidders.

US-Based Investment Company Invests In UK-Based Dairy Company Meadow FoodsNew York—Meadow Foods, which is described as the United Kingdom’s largest independently owned dairy group, has announced that it has completed a strategic investment with Paine & Partners, LLC, a global food and agribusi-ness investment firm.

This strategic investment is to support Meadow Foods’ strat-egy to grow its business through organic expansion and acquisi-tions, according to Meadow Foods.

With this transaction, the Chantler family will remain a sub-stantial shareholder in Meadow Foods, and there are no plans to change the executive management or the broad structure of the busi-ness. The Pickering family will exit as shareholders in Meadow Foods.

“This investment represents a new and exciting phase in the con-tinued development of our busi-ness and will open new avenues of opportunity for all of our producer partners, customers and employ-ees,” said Simon Chantler, execu-tive chairman of Meadow Foods.

Founded in 1992, Meadow Foods currently handles more than 500 million liters of milk each year direct from over 550 farmer suppliers from across the North of England, Midlands and North and West Wales. The company operates from factories in Ches-ter, Peterborough and Holme-on-Spalding Moor and produces soft cheeses and set cultured dairy products, butter and anhydrous milkfat, packed creams and milks, yogurt, and sweetened products.

“In Meadow Foods, we are mak-ing a strategic investment in an industry leader that we believe is poised for continued growth,” said Dexter Paine, chairman, CEO and a founding partner of Paine & Partners. “Meadow Foods’ expe-rienced management team and employees have built a blue-chip customer base with a well-deserved reputation for innovation and reli-able delivery of the highest-quality products.

“We see opportunities to drive growth both organically by increasing production, enhancing capabilities and expanding into new product lines and markets, and through strategic acquisitions that leverage the company’s supply network and customer relation-ships,” Paine continued. “The two most important assets to a business are its people and reputation, and Meadow Foods is exceptional in both of these areas.”

Paine & Partners is an invest-ment firm that focuses on opportu-nities in the fast-growing, dynamic global food and agribusiness sec-tors.

CHEESE REPORTERPage 4 September 23, 2016

from our archives

50 YEARS AGOSept. 23, 1966: Washington—Sen. Gaylord Nelson (D-WI) this week urged FDA to “rigorously inspect” all shipments of imported Colby cheese to be sure they meet high purity standards applying to American products. “There is rea-son to believe at least some of the Colby imports are actually Ched-dar,” Nelson wrote.

Weyauwega, WI—A.A. Suem-nicht of Reedsburg was elected president of the Wisconsin Cheese Foundation, Inc. here this week. Other officers include Harvey Schneider, Waldo, vice president; and Vincent Thompson, Linden, secretary-treasuer.

25 YEARS AGOSept. 20, 1991: San Francisco, CA—Shepherd’s Cheese from Yerba Santa Dairy, Lakeport, CA, took Best of Show at the American Cheese Society’s 1991 cheese judging here this week. Second place was a Dry Jack from Vella Cheese Com-pany, Sonoma, CA, and third place went to Hollow Road Farms, Stuyvesant, NY, for a Camembert-style cheese.

Waukesha, WI—Merle Farn-ham, founder and former board chairman of Dairyland Food Laboratories, Inc. (now a part of the cultures and enzymes divi-sion of Sanofi Bio-Industries, Inc.) and a well-known technol-ogist and pioneer in the cheese and dairy industries, died here Sunday, Sept. 15, 1991.

10 YEARS AGOSept. 22, 2006: Davenport, IA—Swiss Valley Farms has announced the acquisition of facilities and property from the Shullsburg Creamery in Shulls-burg, WI, to accommodate growing demand for Swiss Val-ley products. The acquisition includes a dairy foods manufac-turing plant, cold storage ware-house, dry storage facility, and a wastewater treatment facility – all located on 18 acres on the west side of Shullsburg.

London, England—New evi-dence on the nutritional composi-tion of organically produced milk “does not justify the assertion that organic milk provides health ben-efits other than those associated with conventionally produced milk,” the United Kingdom’s Food Standards Agency reported this week.

World Prices Should IncreaseDairy Situation & Outlook by Bob Cropp

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University of Wisconsin-Madison

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Dairy Situation & OutlookBy Dr. Bob Cropp

USDA’s milk production report showed August milk production 1.9 percent higher than a year ago. The July milk production was also revised up to a 1.6 percent increase. The increase in August was due to 16,000 more cows than a year ago, a 0.5 percent increase, and 1.4 per-cent more milk per cow.

Despite some really low milk prices milk cow numbers have been increasing. Since the begin-ning of the year cow numbers have increased by 40,000 head. There are plenty of replacements to increase the cow numbers and cow slaughter has been 1.4 percent lower thus far this year.

California’s milk production continues to fall below year ago levels down 1.7 percent in August, the result of 11,000 fewer cows and 1.1 percent less milk per cow. But, Idaho’s production was up 4.9 percent with 13,000 more cows and 2.6 percent more milk per cow. Texas led all states with milk production up 11.0 percent from 25,000 more cows and 5.3 percent more milk per cow. Colorado was second with 6.9 percent more milk from 8,000 more cows and 1.1 per-cent more milk per cow.

Michigan continues a strong increase in production up 6.6 per-cent with 12,000 more cows and 3.5 percent more milk per cow. New York’s production was up 3.2 percent while Pennsylvania was down slightly at 0.4 percent. South Dakota’s production continues to increase being up 5.4 percent with 8,000 more cows, but 1.8 percent less milk per cow. Iowa’s produc-tion was up 3.0 percent, Wiscon-sin 2.4 percent and Minnesota 0.8 percent. Wisconsin cow numbers were down 2,000 head, while Min-

nesota cow numbers were up by 2,000 with no change in Iowa.

Milk prices had a good run up but prices aren’t holding. The Class III price was a low of $12.76 in May and had increased to $16.91 in August. But, cheese prices have fallen which means lower milk prices again. On the CME, 40-pound Cheddar blocks were as low as $1.27 per pound in May, but increased to $1.86 in August. Cheddar barrels were also as low as $1.27 per pound in May and increased to $1.88 in August. But, cheese prices have been fall-ing in September.

As of September 20, 40-pound blocks were back down to $1.5975 per pound, the lowest since the end of June. Cheddar barrels were $1.5075 per pound, the lowest since early June. Dry whey prices have strengthened to $0.34 per pound. But, the much lower cheese prices will push the September Class III price to around $16.30, and in the mid to high $15’s for the remainder of the year. However, current Class III futures remain in the $16’s for the remainder of the year, but unless cheese prices rally some current cheese prices don’t support $16 plus Class III.

Nonfat dry milk prices have strengthened. On the CME non-fat dry milk averaged $0.8454 per pound in August and is now $0.92. But, butter prices have been fall-ing. Butter averaged $2.1776 per pound in August and is now $1.9550. Butter had been above $2 per pound since early April. The Class IV price was $14.65 in August, but lower butter prices will more than offset higher nonfat dry milk prices resulting in a Septem-ber Class IV price around $14.20.

Besides really strong increases in milk production, ample cheese stocks and lower cheese exports are factors for lower cheese prices. July 31st American cheese stocks were 10.3 percent higher than a year ago and 13.9 percent higher than the five-year average for this date.

July cheese exports were 6 per-cent lower than a year ago and 25.6 percent lower than 2014 exports. January through July cheese exports were 18 percent lower than a year ago and 29.1 percent lower than 2014 exports.

Ample butter stocks and lower butter exports were also factors for lower butter prices. July butter exports were 33 percent lower than a year ago and 76.5 percent lower than the 2014 exports. January through July butter exports were just 5 percent lower than a year ago, but 75.3 percent lower than the 2014 exports.

July 31st nonfat dry milk stocks were 7.2 percent lower than a year ago, but 19.4 percent higher than the five-year average for this date. But, unlike cheese and butter prices which have been well above world prices nonfat dry milk prices have remained price competitive. July exports were strong being 31 percent higher than a year ago and actually 2.6 percent higher than 2014 exports. January through July exports were even with a year ago but 6.6 percent lower than 2014 exports. July dry whey exports were also higher than a year ago up 12 percent and even with 2014 exports. January through July exports were just 1 percent lower than a year ago and 8.6 percent lower than 2014 exports.

Milk prices should improve as we move into 2017 with the Class III price back in the $16’s and per-haps even reaching $17 by fourth quarter.

However, current Class III futures stay below $17 for all of 2017. Domestic butter and cheese sales are expected to remain good and there are signs dairy exports will improve.

EU milk production which was running as much as 6 percent higher than a year ago had dropped below year ago levels in June and is expected to remain below for the reminder of the year.

Milk production is expected to be below year ago levels for Aus-tralia and Argentina and up just slightly for New Zealand. China has been a little more active with imports and is expected to be more so in 2017.

The expected slower growth in world milk production and stron-ger demand should increase world prices making US dairy products more competitive and improving exports.

CHEESE REPORTERSeptember 23, 2016 Page 5

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For more information, circle #3 on the Reader Response Card on p. 14

California Governor Signs Bill Requiring 40% Reduction In Methane Emissions; Critics Say It Will Hurt Dairy IndustryLong Beach, CA—California Gov. Edmund G. Brown Jr. on Monday signed into law legisla-tion that reduces the emission of so-called super pollutants (also known as short-lived climate pol-lutants) by requiring a 40 percent reduction in methane and hydro-fluorocarbon and a 50 percent reduction in black carbon from 2013 levels by 2030.

Sources of these super pollutants include petroleum-based trans-portation fuels, agriculture, waste disposal and synthetic gases used in refrigeration, air conditioning, and aerosol products, according to a press release issued by Brown’s office.

Achieving the methane reduc-tion targets called for in the new law “will be particularly challeng-ing,” Brown said in his signing statement. “Many strategies will be necessary to redirect manure and organic waste towards more productive uses that reduce emis-sions and stimulate our economy, such as composting, improved soil health, renewable energy and transportation fuels.

“These strategies should reflect the true price of methane and the investments needed to transform the waste and agricultural sectors, such as the costs of landfill disposal and the infrastructure costs of recy-cling,” Brown added.

Brown said he is directing the California Air Resources Board, the California Department of Food and Agriculture and CalRecycle to explore all means, including appro-priate pricing tools, to generate the development of the infrastructure and workforce needed to reach the super pollutant reduction goals.

The bill signed by Brown “cre-ates an inconsistent, new climate change policy which will further increase the cost of doing business in California, especially for our agricultural economy,” said Tom Scott, executive director of the California branch of the National Federation of Independent Busi-ness (NFIB).

The mandated 40 percent reduction in methane and 50 per-cent reduction in anthropogenic black carbon gas “represents a direct assault on California’s dairy industry and will hurt manufactur-ing by creating an arbitrary limit on natural gases which dissipate quickly,” Scott added.

California lawmakers approved the measure on the last day of the legislative session after Brown negotiated a compromise with dairy farmers, some environmental groups and the bill’s author, State Sen. Ricardo Lara.

Swiss Valley Farms Named 2016 Dairy Exporter Of The YearArlington, VA, and Davenport, IA—Swiss Valley Farms has been named the recipient of the 2016 Tom Camerlo Exporter of the Year Award, which is sponsored by the US Dairy Export Council (USDEC).

Swiss Valley’s first experience in exporting came in 2008 with sales to Mexico, and by 2012 export sales began to emerge as a significant part of the company’s business, accounting for almost 10 percent of the company’s sales in 2015. Over the last five years, Swiss Valley’s export sales have grown by 422 percent.

One of Swiss Valley’s primary

export products is cream cheese, which typically ends up in baked goods and appetizers. Swiss Val-ley said it also exports a significant amount of whey, which is used primarily in ice cream and yogurt drink applications. Both of these products are manufactured at the cooperative’s largest facility, in Luana, IA.

Today, Swiss Valley Farms products can be found in Canada, Taiwan, China, Japan, Singapore, Malaysia, Indonesia, the Philip-pines, South Korea, South Africa, Colombia, Chile, Mexico, Puerto Rico, Saudi Arabia, Dubai, Iraq, Morocco, Dominican Republic, Australia, Vietnam, Panama and Hong Kong.

What Swiss Valley lacks geog-raphy-wise — being located in the Midwest — it makes up for in struc-

ture, the company noted. Swiss Valley has a dedicated export sales team and staff in both the qual-ity and customer service depart-ments who are skilled at handling the unique requirements of export paperwork/documentation. At the plant level, Swiss Valley has invested in equipment and materi-als to ensure it has the robust pack-aging necessary to endure overseas shipments.

“Our team has been working hard for many years to build busi-ness both domestically and abroad and we’re proud to be recognized for the successes we’ve had in growing our business globally,” said Jay Allison, Swiss Valley’s vice president of sales and marketing.

“We’re extremely honored and grateful for the recognition,” said Chris Hoeger, Swiss Valley’s CEO.

CHEESE REPORTERPage 6 September 23, 2016

STATE Aug Aug % Change2015 2016 Change Cows

California 3343 3287 -1.7 -11000

Wisconsin 2483 2543 2.4 -2000

Idaho 1225 1285 4.9 13000

New York 1204 1243 3.2 1000

Michigan 877 935 6.6 12000

Texas 827 918 11.0 25000

Pennsylvania 901 897 -0.4 -1000

Minnesota 796 802 0.8 2000

New Mexico 649 659 1.5 -6000

Washington 566 569 0.5 -1000

Ohio 466 469 0.6 NC

Iowa 404 416 3.0 NC

Arizona 365 368 0.8 2000

Indiana 337 344 2.1 3000

Colorado 320 342 6.9 8000

Kansas 263 270 2.7 2000

Vermont 224 227 1.3 -2000

Oregon 214 220 2.8 2000

South Dakota 205 216 5.4 8000

Florida 194 180 -7.2 -5000

Utah 191 184 -3.7 -4000

Illinois 150 148 -1.3 -1000

Virginia 145 139 -4.1 -2000

millions of pounds 1,000 head

Milk Production by State

For more information, circle # 4 on the Reader Response Card on p.14

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1.9% More Milk(Continued from p. 1)

45,000 head more than August 2015 and 16,000 head more than July 2016.

California’s August milk pro-duction totaled 3.287 billion pounds, down 1.7 percent from August 2015, due to 11,000 fewer milk cows and 20 less pounds of milk per cow.

California’s July milk output had been down 0.8 percent from July 2015.

Wisconsin’s August milk pro-duction totaled 2.543 billion pounds, up 2.4 percent from August 2015, due to 2,000 fewer milk cows but 50 more pounds of milk per cow.

Wisconsin’s July milk output estimate was revised up by 7 mil-lion pounds, so production was up 2.4 percent from July 2015, rather than up 2.1 percent as originally estimated.

August milk production in Idaho totaled 1.285 billion pounds, up 4.9 percent from August 2015, due to 13,000 more milk cows and 55 more pounds of milk per cow.

Idaho’s July milk output esti-mate was revised up by 24 million pounds, so production was up 5.6 percent from July 2015, rather than up 3.7 percent as initially estimated.

New York’s August milk produc-tion totaled 1.243 billion pounds. The state’s production was up 3.2 percent from August 2015, due to 1,000 more milk cows and 60 more pounds of milk per cow.

New York’s July milk produc-tion estimate was revised up by 3 million pounds, so output was up 4.3 percent from July 2015, rather than up 4.0 percent as originally estimated.

Michigan’s August milk produc-tion totaled 935 million pounds, up 6.6 percent from August of

2015, due to 12,000 more milk cows and 75 more pounds of milk per cow. Michigan’s July milk out-put estimate was revised up by 4 million pounds, so production was up 5 percent from July 2015, rather than up 4.5 percent as initially estimated.

Moving up to sixth place in milk production last month was Texas. That state’s August milk produc-tion totaled 918 million pounds, up 11 percent from August 2015, due to 25,000 more milk cows and 95 more pounds of milk per cow, NASS reported.

Texas’ July milk production had been up 4.4 percent from July 2015.

With Texas moving into the number six spot in milk produc-tion, Pennsylvania fell to seventh place. That marked the second time this year that Pennsylvania moved down one spot in the rank-ings of the top 10 milk-producing states; earlier this year, Michigan passed Pennsylvania and took over the number five spot.

Pennsylvania’s August milk production totaled 897 million pounds, down 0.4 percent from August 2015, due to 1,000 fewer milk cows and five less pounds of milk per cow.

Pennsylvania’s July milk output had been up 0.3 percent from July 2015.

Minnesota’s August milk pro-duction totaled 802 million pounds, up 0.8 percent from August 2015, due to 2,000 more milk cows and five more pounds of milk per cow. Minnesota’s July milk production estimate was revised down by 7 million pounds, so output was up 0.6 percent from July 2015, rather than up 1.5 percent as originally estimated.

August milk production in New Mexico totaled 659 mil-lion pounds, up 1.5 percent from August 2015, due to 6,000 fewer

milk cows but 70 more pounds of milk per cow.

New Mexico’s July milk output had been down 1.2 percent from July 2015.

Washington’s August milk pro-duction totaled 569 million pounds, up 0.5 percent from August 2015, due to 1,000 fewer milk cows but 20 more pounds of milk per cow, Nass reported.

The state of Washington’s July milk production was revised up by 12 million pounds, so production

was up 2.1 percent from July 2015, rather than unchanged as initially estimated.

All told for the 23 reporting states in August, compared to August 2015, milk production was higher in 17 states.

Those increases ranging from 0.5 percent in Washington to 11 percent in Texas.

Milk production was lower in six states, with those declines ranging from 0.4 percent in Pennsylvania to 7.2 percent in Florida.

-11000

-6000

-1000

4000

9000

14000

19000

24000

CA WI ID NY NM TX MI SD IN

Column2Change In Milk CowsAugust 2016 vs. August 2015in 1000 head

16,000

16,500

17,000

17,500

18,000

18,500

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

US Milk Production2016 vs. 2015in millions of pounds

CHEESE REPORTERSeptember 23, 2016 Page 7

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For more information, circle #5 on the Reader Response Card on p. 14

Dairy CPI Rose 0.4% In August; Average Retail Cheddar Cheese, Whole Milk Prices IncreaseWashington—The Consumer Price Index (CPI) for dairy and related products was 215.506 in August (1982-84=100), up 0.4 percent from July but 2.4 percent lower than in August of 2015, the US Bureau of Labor Statistics (BLS) reported last Friday.

The dairy CPI has now been below 220 for seven consecutive months, after having been above 220 for 24 straight months starting in February 2014.

August’s CPI for all items was 240.853, up 0.1 percent from July and 1.1 percent higher than in August 2015.

The August CPI for food at home was 238.088, down slightly from July and 1.9 percent lower than in August 2015.

August’s CPI for cheese and related products was 226.399, down 0.1 percent from July and 2.4 percent lower than in August 2015.

The average retail price for a pound of natural Cheddar cheese in August was $5.272, up almost nine cents from July but down more than six cents from August 2015.

The average retail Cheddar price has now been under $5.40 a pound for seven straight months.

The average retail price for a pound of American processed cheese in August was $4.273, down 10 cents from July and down more than seven cents from August 2015.

Fluid Milk Prices RisingAugust’s CPI for whole milk was 200.104, up 1.2 percent from July but 4.4 percent lower than in August 2015. August’s CPI for “milk” was 138.747 (December 1997=100), up 1.2 percent from July but 4.9 percent lower than in August 2015. And August’s CPI for milk other than whole was 141.922, up 1.1 percent from July but 5.5 percent lower than in August 2015.

The average retail price for a gallon of whole milk in August was $3.141, up almost eight cents from July but down almost 25 cents from August 2015.

Retail milk prices continued to rise slowly in early September, according to the monthly survey conducted by federal milk market-

ing order market administrators. They conduct their survey one day between the 1st and 10th of each month in 29 selected cit-ies or metro areas located in fed-eral order markets; one outlet of the largest and second largest food store chains and the larg-est convenience store chain are surveyed.

In early September, retail whole milk prices averaged $3.38 per gallon, up two cents from early August and the highest average since early May’s $3.40 per gallon. The average retail price for a gal-lon of whole milk has been under $3.50 every month so far, in the market administrators’ survey.

In early September, average retail whole milk prices ranged from a low of $2.49 per gallon in both Cincinnati, OH, and India-napolis, IN, to a high of $4.12 per gallon in Baltimore, MD.

In addition to Cincinnati and Indianapolis, cities with average retail whole milk prices under $3.00 per gallon in early Septem-ber included Detroit, MI, $2.88; Houston, TX, $2.56; Louisville, KY, $2.78; and Phoenix, AZ, $2.69.

In addition to Baltimore, just one city had an average retail whole milk price at or above $4.00 per gallon in early September: Kansas City, MO, at $4.00.

Retail prices for reduced fat (2 percent) milk in early September averaged $3.32 per gallon, up two cents from early August and the highest average price since early May’s $3.34 per gallon.

In early September, the aver-age retail price for reduced fat milk ranged from a low of $2.49 per gallon in both Cincinnati and Indianapolis to a high of $4.12 per gallon in Baltimore.

Retail prices for whole organic milk averaged $4.26 per half-gal-lon in early September, two cents lower than in early August, accord-ing to the market administrators’ survey, for which one outlet of the largest and second largest food store chains are surveyed.

In early Setpember, the average retail price for whole organic milk ranged from a low of $2.98 per half-gallon in Houston to a high of $5.39 per half-gallon in Pitts-burgh, PA.

Retail prices for organic reduced fat milk also averaged $4.26 per half-gallon in early September, down two cents from early August.

August CPI For Butter IncreasesThe CPI for butter was 239.037, up 1.4 percent from August and 2.6 percent higher than in August 2015. That was the highest butter CPI since January’s 240.904.

August’s CPI for ice cream and

related products was 215.878, up 1.3 percent from July and 0.5 per-cent higher than in August 2015.

The average retail price for a half-gallon of regular ice cream in was $4.71, up almost two cents from July and up more than 11 cents from August 2015.

CPI for other dairy and related products was 146.282 (December 1997=100), down 0.2 percent from July and 1.1 lower than in 2015.

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$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

$5.50

$6.00

07 08 09 10 11 12 13 14 15 16

Milk Cheddar

Average Retail PricesCheddar & Whole Milk August 2007 – 2016 Price per pound/gallon

CHEESE REPORTERPage 8 September 23, 2016

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For more information, circle #6 on the Reader Response Card on p. 14

HILLARY HILDEBRANDT has joined Winona Foods, Inc. as regional sales manager. Based in northwest Wisconsin, Hildeb-randt brings several years of dairy industry experience to her new role.

BENJAMIN MONDICS has been appointed president and CEO of ERIKS North America. Mondics most recently served as president of the friction controls group at SKF subsidiary Kaydon Corp. from 2013 to 2016, where he oversaw seven business units and 14 manufacturing facilities in six countries. He also served as president and chief operating offi-cer at Applied Industrial Tech-nologies from 2008 to 2013, and held other executive and manage-ment positions within the com-pany since 1994.

JOHN MESKO has been hired as executive director of the Midwest Organic & Sustainable Service Organization (MOSES), succeed-ing FAYE JONES, who retired in March. Mesko has headed the Sustainable Farming Association (SFA) since 2009.

JERRY ANDERSON has retired from Synder Filtration after 20 years of service, first joining the company in 1996 as a sales asso-ciate. Originally from Darling-ton, WI, Anderson began his dairy industry career in 1972 at Roy’s Dairy, Monroe, WI. He was named the first superintendent of Roy’s whey processing plant in 1981. Anderson joined APV in 1992 as a technical service field representative, and was later hired by Sepratech in a similar capacity in 1994.

PERSONNEL Cheese Importers Association Selects 12 Retailers For Trip To SIAL Trade Show In ParisParis, France—The Cheese Importers Association of Amer-ica (CIAA) has selected 12 food retailers for its trip to the SIAL Trade Show here Oct. 15-19.

Food retailers selling wholesale cheese were invited to apply for the all-expense-paid trip to SIAL, which features several exhibition halls of cheese and gourmet foods.

Retailers were selected via a random lottery held last month. They include REBEKAH BAKER, Nugget Market, Wood-land, CA; JOAN BOIRE, Albert-son’s Companies, Bellevue, WA; ROBIN CANTOR, PCC Natural Markets, Seattle, WA; BRETT EVANS, Queens Price Chop-per, Overland Park, KS; DAVID HAAF, K-VA-T Food Stores, Inc., Abingon, VA; DAMIAN HOUNCAN, Kings Food Mar-kets, Parsipanny, NJ; MIKE KIRBY, Grocery Outlet, Inc., Emoryville, CA; KARLYN LAU-LUSA, Foodland Supermarkets, Honolulu, HI; KELLY KEUNG, Wakefern Food Corp., Eliza-beth, NJ; PENSUDA PATITAS, Buy for Less/Uptown Grocery, Oklahoma City, OK; NANCY WANGLES, Dierbergs Markets, Chesterfield, MO; and CHRIS WILSON, United Supermarkets.

The retailers will attend SIAL as guests of CIAA, and partici-pate in all events and dinners with CIAA members. They will also have VIP access to the show, with several opportunities to net-work with food manufacturers and professionals.

During the biennial Green County Cheese Days in Monroe, WI, last weekend, a special plaque was unveiled at a demonstration cheese factory in honor of the late John Bussman, who was well-known for his many cheesemaking demonstrations at Cheese Days and vari-ous other locales. Bussman, a native of Monroe, WI, and the longtime owner of the Warren Cheese Plant in Warren, IL, died on June 3, 2016, at the age of 91. At left is Steve Stettler of Decatur Dairy, Brodhead, WI, who discussed Bussman’s many contributions to Cheese Days and to the area’s cheese industry.

Demonstration Factory Dedicated to John Bussman During Cheese Days

Castelli America(Continued from p. 1)

on the Ashville plant as their main delivery site, the Empire State Development added.

With the additional investment and upgrades to make the Ashville plant a state-of-the-art dairy man-ufacturing facility, it will be able to achieve market efficiency levels and potentially become the manu-facturer’s industrial consolidation platform for Castelli’s new US sub-sidiary, which ESD said is intended to be a sizable US specialty cheese manufacturer.

“We are delighted to have cho-sen Chautauqua county as our new home,” said Paul Bensabat, presi-dent of Castelli America, LLC, who added that Castelli intends to make several acquisitions in the US in the near future and become a leading US specialty cheese man-ufacturer.

Empire Specialty Cheese, which produces fresh Mozzarella and Ricotta cheeses, was in a difficult financial situation due to various constraints which the new plant created for them and the need for many required improvements, ESD stated.

These improvements will be made under the new ownership.

Research and development at the plant will also be enhanced to formulate several new premium Italian cheese products to expand the existing line of business, ESD added.

Empire State Development will provide a $500,000 capital grant and $5.5 million loan in return for

Castelli’s job and investment com-mitments.

New York Gov. Andrew M. Cuomo had announced three years ago that Empire Specialty Cheese was planning to invest $6.37 mil-lion to expand its business in New York state. The company purchased and upgraded an idle manufactur-ing facility in Chautauqua county to accommodate new and existing cheese production processes.

Nuova Castelli Group, founded in 1892, is based in Reggio Emilia, Italy.

Today, with a turnover of more than 500 million euros, it is a lead-ing producer and distributor of Ita-ly’s famous DOP cheeses, including Parmigiano Reggiano and Grana Padano, among others.

The company’s products are sold both under its own brand and its clients’ private labels.

In 2014, Nuova Castelli was acquired by Charterhouse Capital Partners, a London-based private equity firm, which has enabled Nuova Castelli to grow further. Today Nuova Castelli employs more than 1,000 people in approx-imately 20 plants located in Italy and other countries.

“We want to make sure the dairy industry continues to thrive in western New York,” said How-ard Zemsky, ESD’s president, CEO and commissioner. “For more than a century Castelli has worked to consistently produce high quality cheese products in Italy and its purchase of the Ashville facility, as well as its commitment to retain-ing all of the plant’s jobs, is a huge win.”

CHEESE REPORTERSeptember 23, 2016 Page 9

For more information, circle #6 on the Reader Response Card on p. 14

Baker Cheese, A String Cheese Leader And Innovator, Celebrates 100th AnniversarySt. Cloud, WI—A series of inno-vations over 100 years during four generations of family ownership and management have made Baker Cheese, Inc., one of the top three manufacturers of String cheese in the world.

Those achievements were cele-brated at a 100th anniversary gath-ering at the community park in this northeast Fond du Lac county village on Saturday, Sept. 17.

More than 500 Baker Cheese employees, family members, dairy farmer patrons, milk haul-ers, and area residents attended the event.

In a tent set up on the grounds, event attendees were invited to review the pictorial and text dis-plays illustrating the history of the family, which has operated a cheese plant at the same site near the intersection of county high-ways G and T about six miles south of St. Cloud since 1916.

A 144-page book, titled “Baker Cheese: The Story of a Wisconsin Cheesemaker Family” and prepared for the occasion, detailed the fam-ily history, starting in 1829 with ancestors coming from the coun-try of Luxembourg, establishing themselves in New York and then Wisconsin.

It was in 1910 that Frank Baker, at age 16, began a cheesemaking apprenticeship at the Winkler Cheese Factory at Plymouth in neighboring Sheboygan county. Six years later, he obtained his cheese maker’s license, marking the unofficial start of Baker Cheese on June 22, 1916.

Baker then purchased an exist-ing 1,500 square foot cheese fac-tory in the town of Forest.

During the early days of pro-

duction at the site, which has had multiple expansions in the subse-quent 100 years, the daily volume of Cheddar cheese production was 300 pounds and the annual intake of milk was about 1 million pounds.

One of Frank Baker’s innova-tions was in becoming an early user of the cream separator.

By 1956, when Frank’s son Francis had joined the family busi-ness, the daily cheese production volume had reached 3,300 pounds and the annual milk intake hit 11 million pounds.

With the changes in market conditions, consumer tastes, and the popularity of pizza, Baker Cheese began to switch from Cheddar to the production of Moz-zarella cheese in the 1960s.

The next step was the conver-sion to String cheese, beginning with research on the stretching of Mozzarella balls into a rope and then cutting it into small chunks of String cheese, which was described at one point as “a curd cousin of Mozzarella.” To provide consistency in the production of the String cheese, an extrusion process was developed and the individual wrapping of the strings was introduced.

By 2004, Baker Cheese discon-tinued the production of Mozza-rella and concentrated fully on developing numerous varieties and flavors of String cheese, including smoked. In 1979, String cheese had accounted for 2 percent of Baker’s production volume.

String cheese production had increased to 3 million pounds in 1986, which was also the year dur-ing which kosher production wasbegun.

In 2015, Baker’s String cheese production was 40.905 million pounds – an average of 154,000 pounds per working day. The year’s milk intake was 446.34 million pounds.

For 2016, the company is pro-jecting a daily average produc-tion of 169,000 pounds of String cheese during its five-day work week, resulting in an annual total of 44.1 million pounds or 762 mil-lion cheese sticks.

Under Baker’s own label and both private and national label brands, the company’s String cheese is available in all 50 states, China, Canada, Mexico, Vietnam, South Korea, Saudi Arabia, and Puerto Rico.

Plant Expansions, Retail StoreWith its 300 employees, Baker

Cheese prides itself on making “100 percent natural cheese” and doing so within 48 hours of receiv-ing milk from about 110 area dairy farms.

Those farms in Fond du Lac, Sheboygan, Calumet, Winnebago, Manitowoc, Dodge, and Washing-ton counties – all within about 50 miles of the plant – are expected to supply 487.6 million pounds of milk to the plant during 2016.

Another indication of Baker’s growth was the increase in plant space from the original 1,500 square feet to 5,100 square feet in 1956 and 93,006 square feet today.

A major project in 2015 was the construction of a wastewater man-agement plant on the site.

A retail store that opened in 1986 sells about 100,000 pounds of cheese per year. In addition to the String cheese, it also features more than 100 cheese varieties from other manufacturers through-out Wisconsin.

When Baker Cheese held a 75th anniversary celebration on August 24 in 1991, Francis Baker credited the company’s success to its history of family ownership and management, its market-driven business philosophy, and frequent refinement of its production tech-niques.

Throughout its history, Baker Cheese has often earned top awards for its entries in numerous cheese contests.

That includes the gold medal for String cheese in the 2015 World Cheese Championship.

To today’s customers, the com-pany that is headed by fourth generation family member Brian Baker promises the best in “fresh-ness, quality, and service.”

With full confidence, third gen-eration family member and former company president Dick Baker invited all attendees at this year’s 100th anniversary observance to mark their calendars for a 125th anniversary celebration on Satur-day, Sept. 15, in 2041.

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California’s Clover Stornetta Farms To Convert Conventional Products To Non-GMO Project VerifiedPetaluma, CA—Clover Stor-netta Farms, a third-generation California dairy company, this week announced its commitment to convert its conventional milk products to be Non-GMO Project Verified over the next two years.

Clover also said it will be one of the first Non-GMO Project Veri-fied conventional milk products produced in California on a large scale.

“Our focus on Non-GMO reaf-firms our commitment to invest in the future of our dairy cows, fam-ily farms, and communities,” said Marcus Benedetti, Clover’s presi-dent and CEO.

“Clover’s commitment to tran-sition their conventional dairies will increase non-GMO feed acre-age in California, help family farms expand their business by meeting non-GMO demand, and provide more choice to customers,” said Megan Westgate, Non-GMO Proj-ect executive director.

“Our hope is to lead the way by creating an industry-wide move-ment towards more non-GMO feed options for our dairy cows,” said Benedetti said.

Organic Milk(Continued from p. 1)

Vermont: 169.6 million pounds, with a value of $61 million.

Minnesota: 122.8 million pounds, with a value of $41.8 mil-lion.

Idaho: 114.4 million pounds, with a value of $40.7 million.

Also according to the report, there were 26 US farms that sold certified organic goat milk last year. Certified organic goat milk production in the US totaled 4.1 million pounds last year, and was valued at $2.3 million.

Leading states in organic goat milk last year were: Minnesota, 958,166 pounds; Iowa, 888,050 pounds; Oregon, 476,820 pounds; and New York, 164,421 pounds.

As noted earlier, there were 12,818 certified organic farms in the US last year. California and Wisconsin had the largest num-ber of certified organic farms, with 2,637 and 1,205, respectively.

Five other states had more than 500 certified organic farms last year: Iowa, 674; New York, 934; Pennsylvania, 681; Vermont, 568; and Washington, 598.

Of the 12,818 certified organic farms in the US last year, 32 per-cent have been operating a farm of any type for less than 10 years, while 23 percent have been oper-ating a farm for 10 to 19 years, 17 percent for 20 to 29 years, 16 per-cent for 30 to 39 years, 8 percent for 40 to 49 years, and 4 percent for

50 years or more.Also of those 12,818 certified

organic farms, 25 percent have been involved in certified organic production for less than five years; 32 percent have been involved in certified organic production for five to nine years; and 44 percent have been involved in certified organic production for 10 years or more.

As far as the five-year produc-tion plans for the 12,818 certi-fied organic farms are concerned, 37 percent (4,749 farms) plan to increase their certified organic production, 45 percent (5,788 farms) plan to maintain their current level of certified organic production, 3 percent (335 farms) plan to decrease their certified organic production, 1 percent (181 farms) plan to discontinue certi-fied organic production, 1 percent (186 farms) plan to discontinue all production, and 12 percent (1,579 farms) do not know.

The vast majority of certified organic agricultural products sold in 2015 were sold close to the farm or ranch, with many growers having multiple outlets. The first point of sale for 75 percent of all US organic farms and ranches was within 100 miles from the farm and 35 percent was 100 to 499 miles away, virtually unchanged from 2014.

71 percent of US certified organic farms and ranches reported selling products to wholesale mar-kets.

Pending Rules For USDA’s GMO Disclosure Program, No Certified Organic Products Will Require DisclosureWashington—Under a policy memorandum issued this week, when proposing standards for a national bioengineered food dis-closure program, the policy of USDA’s Agricultural Marketing Service (AMS) will be that no certified organic products will require disclosure as bioengi-neered.

Also, the memo added, no pro-posed rules for bioengineered food disclosure will require that modi-fications be made to the USDA organic regulations.

In July, President Obama signed a bill that creates the National Bioengineered Food Disclosure Standard. The memo released this week describes the criteria used by the GMO disclosure program within the AMS Livestock Poul-try and Seed Program (LPS), as the basis for ensuring consistency with the Organic Foods Produc-tion Act and the AMS National Organic Program (NOP).

The use of bioengineered prod-ucts, also generally referred to as genetically modified organisms (GMOs), is prohibited in organic production and handling, the memo pointed out. This prohibi-

tion applies to any product certi-fied and labeled as 100 percent organic, organic, or “made with organic (specified ingredients).”

AMS LPS will implement the National Bioengineered Food Dis-closure Standard, which instructs USDA to establish a national mandatory bioengineered food disclosure standard, with respect to any bioengineered food and/or any food that may be bioen-gineered, by July 29, 2018. AMS will implement this law through rulemaking, with public notice and comment. AMS said it also intends to hold public stakeholder sessions to seek input prior to rulemaking.

Proposed rules for the GMO disclosure program will cover only food for human consumption, as defined by the authorizing leglsi-ation, whereas the organic regula-tions cover human food, livestock feed, feed inputs and fiber.

USDA organic regulations do not establish GMO tolerance lev-els. Organic standards are process based, and the regulations pro-hibit the use of GMOs, prohibit commingling or contamination during processing and handling, and require preventative practices to avoid contact with GMOs.

As instructed by statute, USDA will consider organic certification sufficient to make a claim regard-ing the absence of bioengineering in the food, such as “not bioengi-neered,” or “non-GMO.”

For more information, circle #7 on the Reader Response Card on p. 14

CHEESE REPORTERSeptember 23, 2016 Page 11

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Raw Milk Cheese(Continued from p. 1)

said they also were pleased with FDA’s decision to temporarily pause enforcement of its non-toxigenic E. coli standard while these discussions continue (for more information, please see “FDA Decides To Pause Its Testing Pro-gram For Non-Toxigenic E. Coli..., on page 1 of our Feb. 12, 2016 issue by scanning the QR Code on page 2 of this issue).

“any increase in the aging requirement could increase costs to producers and would only be justified if it

were proven to improve food safety.”

—US Senators

“This pause will provide an opportunity to develop a science-based regulatory approach that promotes food safety and protects consumers while providing arti-san cheese producers with the regulatory clarity and consistency they need to continue producing healthy and safe raw milk cheeses,” the lawmakers said.

However, the lawmakers said they “remain concerned” that FDA’s previously proposed stan-dard to limit the presence of non-toxigenic E. coli in cheese to 10 most probable number (MPN)/gram could halt the growth of the raw milk cheese industry “despite a lack of evidence that doing so would improve public health out-comes. We are encouraged by recent efforts underway within the artisan cheese industry to develop alternative, consensus-driven food safety guidelines, and would encourage the FDA to continue their engagement with those dis-cussions.”

In their letter, the lawmakers also brought to Ostroff’s atten-tion concerns with FDA’s current 60-day aging threshold for raw milk cheese.

“While we appreciate FDA’s efforts to review the appropriate-ness of this threshold, we have heard from industry and food safety experts that the 60 day standard may be inappropriate for soft raw milk cheeses, and extending the aging requirement beyond 60 days may actually increase food safety risks,” the lawmakers wrote.

Also, “any increase in the aging requirement could increase costs to producers and would only be justi-fied if it were proven to improve food safety, which to date we have not seen evidence of,” they added.

FrieslandCampina To Pay Farmers For Less Milk Production; Premium Is In Addition To EU IncentiveAmersfoort, Netherlands—FrieslandCampina, one of the larg-est dairy companies in the world, has announced that, starting Octo-ber 1, 2016, it will pay its member dairy farmers 10 euro cents per not produced kilogram of milk for a period of six months.

Wi th th i s mea su re , FrieslandCampina aims at a reduc-tion of a total of 150 million kilo-grams of milk in the period from October 1, 2016, up to March 31, 2017, inclusive.

FrieslandCampina is making available a total amount of 15 mil-lion euros for member dairy farm-ers who produce less milk, which comes down to 10 euro cents for each not supplied kilogram of milk.

This amount will be paid on top of the milk reduction premium of 14 euro cents paid by the European Union (EU) for each kilogram of not produced milk to dairy farmers who have applied for this payment.

Wi th th i s mea su re , FrieslandCampina also intends to accelerate the reduction of phos-phate production at its member

dairy farms in anticipation of the announced Dutch phosphate pro-duction rights.

Under the EU’s milk production reduction program, EU aid will be available to eligible applicants reducing cow milk deliveries for a three-month period. There are four deadlines for applying for the aid, and four corresponding production reduction periods: Sept. 21 was the application deadline for the first reduction period, covering Octo-ber, November and December 2016; Oct. 12 is the application deadline for the second reduction period, covering November and December 2016 and January 2017; Nov. 9 is the application deadline for the third reduction period, cov-ering December 2016 and January and February 2017; Dec. 7 is the application deadline for the fourth reduction period, covering Janu-ary, February and March 2017.

Payment of the aid will be car-ried out once EU member coun-tries have checked that the cow milk delivery reduction for which EU aid is paid has actually taken place. In order to achieve an effec-tive reduction in cow milk deliver-ies, the eligibility of applicants will be limited to those who were deliv-ering cow milk to first purchasers in July 2016, the most recent period for which applicants can provide evidence of such deliveries.

Unpasteurized Cheese From Mexico Blamed For Record Number Of Brucellosis Infections In Dallas County, TXDallas, TX—Dallas County Health and Human Services has confirmed a record number of 13 brucellosis infections in residents this year to date.

All cases reported consuming unpasteurized cheese brought into the US from Mexico by friends or relatives, unpasteurized cheese while traveling in Mexico, or unidentified cheese products from local street vendors.

Only two to six cases of Brucel-losis infections are usually reported

annually in Dallas, with 11 cases recorded in 2004. Affected patients this year have ranged from six to 80 years of age, and typically required in-patient evaluation and treatment initiation.

Two incidents of high-risk occu-pational exposures of hospital lab-oratory personnel have occurred during handling of these clinical Brucella isolates.

Brucella bacteria are slow-grow-ing gram-negative coccobacilli that can infect livestock such as cows, goats or sheep, the DCHHS explained. The most common mode of transmission to humans is by consumption of unpasteur-ized dairy products originating from regions where brucellosis is endemic, such as Mexico, Central America and South America.

For more information, circle #8 on the Reader Response Card on p. 14

CHEESE REPORTERPage 12 September 23, 2016

www.cheesereporter.com/events.htmSUPPLIER NEWS

COMPANY NEWS

PEOPLE

C

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CM

MY

CY

CMY

K

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

EVAPORATION AND DRYING PRODUCT AND APPLICATIONS MANAGER

THE POSITION:

Tetra Pak Inc. is looking for a Product and Applications

Manager for the Evaporation and Drying group. This

individual will have the opportunity to interface within all

levels of the organization and make a difference for our

customer base. There will be opportunities to touch all areas

of the business and will provide unlimited career

growth potential.

The role’s primary responsibility is to promote and secure

new sales for Evaporation and Dryer systems for the Dairy,

Cheese and Prepared Foods categories, ensuring our

portfolio and solutions meet the needs of our NA-based

customers. Primary tasks include marketing, pre-projecting

calculations and quotations, preparation of sales material,

commercial contracts for negotiation with end customers

and securing profitable orders.

PRIMARY OBJECTIVES

To secure targeted volumes of Evaporation and Dryer

equipment and project sales utilizing proven process

designs, approved cost calculation models, approved

contract negotiation methodology utilizing the global Model

Contract documents.

• Responsibility to design and specify E&D technical

solutions including agreed functionality and

performance guarantees will be the responsibility of

the CPS -US -Hub or CPS BU NL support team.

• Preparation of sales and marketing plans, securing

Evaporation and Dryer application budgets to execute

and deliver on the agreed NA Market Area strategies

and business growth ambitions.

• Quotation/tender preparation for new system sales

enquiries, including: opportunity evaluation, validation,

prioritization and indentification of both commercial

and technical risk for Tetra Pak.

• Coordination and team leadership of all Market Area

activities required to compile E&D quotations/tender

documents, including final editing of customer proposal

document, with Market Area sales team.

SPECIFIC ACCOUNTABILITIES - OVERVIEW

• Appraise current and planned customer needs and

advise on the application of company products or

service to customer requirements.

• Prepare proposals and detailed costing and prepare

contract documents for negotiation with customers.

• Recommend variations to product, or design and

participate in regular meetings to communicate

intelligence.

EDUCATION, EXPERIENCE AND

COMPETENCIES REQUIRED

• Previous experience in organization and prioritization

• Understanding of evaporation and drying required

• Bachelor’s degree required

• Previous experience in a customer-interfacing role

• Travel 50-70%

Interested applicants may submit resumes to Alison.Fornander@tetrapak.com.

EOE/M/F/Veteran/Disabled

Tetra Pak Inc.’s Cheese and Evaporation and Drying division specializes in cheese making equipment and provides proven

solutions for evaporation and drying powder technologies. Tetra Pak Processing Equipment is the world’s leading food

processing and packaging solutions company. Our motto, “PROTECTS WHAT’S GOOD,” reflects our position to make food

safe and available, everywhere.

Evaporation_manager_7X8.indd 1 9/15/2016 9:16:08 AM

Sept. 27-28: ADPI Dairy Ingre-dient Seminar, Fess Parker Hotel, Santa Barbara, CA. For details, visit www.adpi.org.

•Sept. 27-29: 7th Symposium On Milk Genomics & Human Health, UC-Davis, Davis, CA. For more details, visit www.milkgenomics.org.

•Oct. 11-13: NCCIA Annual Meeting, Holiday Inn City Cen-tre, Sioux Falls, SD. For details, visit www.northcentralcheese.org.

•Oct. 31-Nov. 2: NDB, NMPF, UDIA Joint Annual Meeting, Gaylord Opryland, Nashville, NT. Visit www.nmpf.org.

PLANNING GUIDE

Interested applicants may submit resumes toAlison.Fornander@tetrapak.com

EOE/M/F/Veteran Disabled

Penn State Art & Science of Cheesemaking Short Course Scheduled For Nov. 7-10University Park, PA—Penn State University will host its Science & Art of Cheesemaking Short Course here Nov. 7-10 at the Rod-ney Erickson Food Science Build-ing on campus.

Of special note, the program will be held during the 2016 presi-dential election. Information on requesting an absentee ballot is available on the course website.

The four-day course is designed for farmstead and artisan dairy pro-cessors interested in starting a spe-cialty cheese business. Instructors will also cover the materials and processes used to improve an exist-ing business.

It kicks off with a discussion on the materials used in cheesemak-ing, followed by a discussion on the

chemical and microbial changes at each step in the cheesemak-ing process to help cheese mak-ers understand how to adjust their make procedure to modify finished cheese properties, or in response to variations in milk supply or other factors.

Hands-on laboratories include a microbiology testing session and making several varieties of cheese in the pilot plant.

The sensory evaluation session integrates the principles learned in lectures and labs and is designed to illustrate how cheese evaluation can be used to troubleshoot manu-facturing problems.

Food safety principles, including HACCP, will also be presented to help cheese makers comply with

current and anticipated regula-tions.

The course will be led by Dave Potter of Dairy Connection, and Penn State’s Kerry Kaylegian, Sarah Cornelisse, and Cathy Cut-ter; and Pat Hastings, Chemserve, Inc.

The early registration deadline is Oct. 17. Cost to attend prior to the deadline is $1,075 per person and $1,275 after Oct. 17. The registra-tion fee includes tuition, course materials, laboratory fees, certifi-cate of attendance a welcome wine and cheese reception and a jacket.

Each additional person reg-istered from the same group will receive a $100 discount.

For more information, visit wwwfoodscience.psu.edu.

Eastern WI Cheese & Butter Association’s Convention November 2 Appleton, WI—The Eastern Wis-consin Cheese Makers and Butter Makers Association (EWCBA) will return to the Darboy Club here Wednesday, Nov. 2 for its 23rd annual convention.

Registration begins at 3 p.m. fol-lowed by a business meeting and concurrent ladies’ meeting. Matt Mathison of the Wisconsin Milk Marketing Board (WMMB) will give a presentation of “FSMA for Dummies,” providing an overview of the Food Safety Modernization Act (FSMA) regulations and how they will affect the cheese industry.

Attendees will also hear updates from the WCMA, the Wisconsin Center for Dairy Research (CDR) and WMMB.

A cocktail hour will kick off at 5:30 p.m., followed by a banquet and door prize distribution.

The cost of registration and ban-quet is $30 before Oct. 17 and $35 after. Member services manager Barb Henning will be gone from Oct. 20-31, so early registrations would be appreciated, but late reg-istrations will still be accepted. Memberships fees are an additional $20 per person.

Checks can be made payable to: Eastern Wisconsin Cheesemak-ers & Buttermakers Association and sent to: Barb Henning, 21812 Point Creek Rd., Kiel, WI 53042.

CHEESE REPORTERSeptember 23, 2016 Page 13

MARKET PLACECLASSIFIED ADVERTISINGphone: (608) 246-8430 fax: (608) 246-8431e-mail: classifieds@cheesereporter.comSe

rvin

gth

eWorld's Dairy Industry W

eekly

Since 1876

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

1. Equipment for Sale

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 drlambert@dialez.net.

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

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 drlambert@dialez.net.

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; drlambert@dialez.net.

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 drlambert@dialez.net

2. Equipment Wanted

ULLMER’S DAIRY EQUIPMENT is looking to buy used daisy hoops, midget hoops, A-frame presses, 20- pound block molds, water/milk silos, homogenizers, and separators. Con-tact us at (920) 822-8266 or e-mail us at ullmersdairyeqpt@netnet.net.

3. Cheesecloth

CHEESECLOTH FOR ALL YOUR CHEESEMAKING NEEDS- Grade 60 (32x28) White Cheesecloth: $241*/Case. 36” Wide x 60 Yards. All con-structions, medical grade. Microfiber and dairy wipers too. Contact Lucy Bauccio at Monarch Brands by emaill-ing lucyb@monarchbrands.com or call 267-238-1643

4. Walls, Flooring

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

4. Walls, Flooring

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

5. Real Estate

DAIRY PLANTS FOR SALE: http://dairyassets.webs.com/dairy-plants. Call Jim at 608-835-7705

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: tsloan@tsloan.com

7. Consultants

Advertise your consultancy services in Cheese Reporter and www.cheesere-porter.com. Call 608-246-8430 for more information.

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

8. Help Wanted

10. Cheese & Dairy Products

KEYS MANUFACTURING: Dehydrators of scrap cheese for the animal feed idustry. Contact us for your scrap at (217) 465-4001; email keysmfg@aol.com.

14. Warehousing

FREEZER SPACE AVAILABLE: We have expanded and have freezer space available. Please contact Bob at Martin Warehousing at 608-435-6561 ext *229 or email Bob at bobs@martin-milk.com

REFRIGERATION, DRY & FROZEN STORAGE SPACE AVAILABLE: We’ve added more cooler space and a heated dry storage area. Contact: Eric at SUGAR RIVER COLD STORAGE at Call 1-877-283-5840 or email srcs@tds.net

15. Testing Services

Promote your microbiological, nutritional or food sample testing services here. Call 608-246-8430 for information or email info@cheesereporter.com to advertise here and at www.cheesereporter.com

16. Milk

Sanitation Manager Dairyfood USA, Inc., a SQF level 3 certified market leader in specialty cheese production for over 60 years, is currently seeking a Sanitation Manager responsible for supervising the cleaning of plant equipment within GMP guidelines, SOPs and requlatory standards. Based in our production facility in the heart of America’s Dairyland, Blue Mounds, WI, this position reports to the Quality Assurance Director. Ideal candidates will, at a minimum, have an Associate’s degree in Food Science, Quality, Chemistry or Environmental Science; 5 years of operational experience in sanitation, with a minimum of 3 years in a management capacity or related experience. Working knowledge of FDA regulations, Good Manufacturing Practices (GMPs), sanitation processes/procedures and HACCP is a must.The position offers a competitive salary and a comprehensive benefits package. Interested applicants should email a cover letter, resume and salary requirements to:

humanresources@dairyfoodusa.comDairyfood USA, Inc.2819 County Road F, Blue Mounds, WI 53517(Corner of 18/151 & County Rd F)608-437-5598www.dairyfoodusa.com

Equal Opportunity Employer

Dairyfood USA, Inc.Sales & Marketing ManagerDairyfood USA, Inc., a SQF certified market leader in specialty cheese produc-tion for over 60 years is seeking a Sales/Marketing Manager for its Western Region. The Western Region Sales Manager will develop strategy and organize and execute a dynamic marketing and sales program serving diversified markets such as Food Service, Private Label, Grocery, Snack Companies and Retail.

Develops and manages Broker network. Develops and executes general sales promotion and advertising strategy. Coordinates and directs meetings, confer-ences and convention programs to achieve maximum direct product exposure and promote sales. Represents Company at regional and national trade shows.

The ideal candidate will have sales and marketing experience in the Food Industry and live in the region.

Dairyfood USA, Inc. offers an excellent salary and comprehensive benefit pack-age.

For confidential consideration,please forward resume to:

Peggy WhiteHuman Resources ManagerDairyfood USA, Inc.pwhite@dairyfoodusa.com

Dairyfood USA, Inc.Sales & Marketing Manager

Dairyfood USA, Inc., a SQF certified market leader in specialty cheese produc-tion for over 60 years is seeking a Sales/Marketing Manager for its EasternRegion responsible to develop strategy and to organize and execute a dynamicmarketing and sales program serving diversified markets such as Food Service,Private Label, Grocery, Snack Companies and Retail.

Develops and manages Broker network. Develops and executes general salespromotion and advertising strategy. Coordinates and directs meetings, confer-ences and convention programs to achieve maximum direct product exposureand promote sales. Represents Company at regional and national trade shows.

The ideal candidate will have sales and marketing experience in the FoodIndustry and live in the region.

Dairyfood USA, Inc. offers an excellent salary and comprehensive benefit pack-age.

For confidential consideration,please forward resume to:

Peggy WhiteHuman Resources ManagerDairyfood USA, Inc.pwhite@dairyfoodusa.com

ory to:Installation & Start-Up Available • 24/7 SupportInstallation & Start-Up Available • 24/7 Support

SEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERS

GREAT LAKES SEPARATORS, INC.GREAT LAKES SEPARATORS, INC.GREAT LAKES SEPARATORS, INC.GREAT LAKES SEPARATORS, INC.Call Dave Lambert at (920) 863-3306 • or Dick Lambert at (920) 825-7468E1921 County Road J • Kewaunee, WI 54216Fax: (920) 863-6485 • E: drlambert@dialez.net

A L F A -L AV A L C I P U N I T S• M.R.P.X 418 HGV Cold Milk Hermedic Separator

30,000 pph Separation40,000 pph Standardization

• M.R.P.X. 418 H.G.V. Hermedic Separator55,000 pph Separation75,000 pph Standardization

• M.R.P.X. 314 T.G.V. Separator33,000 pph Separation50,000 pph Standardization

• M.R.P.X. 214 T.G.V. Separator28,500 pph Separation40,000 pph Standardization

W E S T F A L I A C I P U N I T S• M.S.B. 200 Separator

55,000 pph Separation80,000 pph Standardization

• M.S.B. 130 Separator33,000 pph Separation50,000 pph Standardization

• M.S.A. 120 Separator33,000 pph Separation50,000 pph Standardization

• M.S.A. 100 Separator27,500 pph Separation, 40,000 pph Standardization

New Inventory Arriving Dairy • Unbeatable PricingNew Inventory Arriving Dairy • Unbeatable Pricing

• SB 60 Clarifier - 90,000 pph Clarification Warm or Cold• M.S.A. 40 Clarifier - 60,000 pph Clarification• S.A.M.R. 15036 Clarifier - 60,000 pph Clarification

W E S T F A L I A T E A R D O W N U N I T S• M.M. 9004 - 20,000 pph Separation• M.M. 5004 - 11,000 pph Warm Separation• M.M. 3004 - 8,000 pph Warm Separation • M.M. 13004 (bowls & pumps only) - 30,000 pph Separation

D E L AV A L T E A R D O W N U N I T S• DeLaval 340 - 35,000 pph Warm Sep./1,750 pph Cold Sep.• DeLaval 372 AH - 12,000 pph Warm Separation• DeLaval 390A - 3,500 pph Cold Separation; 7,000 pph Warm Separation; 12,000 pph Standardization • DeLaval 392A - 5,500 pph Cold Separation• DeLaval 392A - 14,000 pph Warm Separation• DeLaval 395A - 20,000 pph Standardizing• DeLaval 510 - 10,000 pph Cold Separation• DeLaval 590 - 10,000 pph Cold/35,000 Standardization Clarification• DeLaval 525 - 25,000 pph Warm Separation• DeLaval 545 - 50,000 pph Cold or Warm Separation

CHEESE REPORTERPage 14 September 23, 2016

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

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TYPE OF BUSINESS:___Cheese Manufacturer___Cheese Processor___Cheese Packager___Cheese Marketer(broker, distributor, retailer___Other dairy processor (butter, cultured products)___Whey processor___Food processing/Foodservice___Supplier to dairy processor___Other________________

JOB FUNCTION:___Company Management___Plant Management___Plant Personnel___Laboratory (QC, R&D, Tech)___Packaging___Purchasing___Warehouse/Distribution___Sales/Marketing___Other_______________

For information about the adver-tisements or new product infor-mation, circle the number below which corresponds to the ad or article in which you are interested.

Issue Date: 9/23/16

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September 21, 2016—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 Sept. 17 Sept. 10 Sept. 3 Aug. 27

40-Pound Block Cheddar Cheese Prices and Sales Weighted Price Dollars/PoundUS 1.7599 1.7968• 1.8251 1.8078Sales Volume PoundsUS 13,055,365 12,683,737• 14,532,685• 14,533,164

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

Weighted Price Dollars/PoundUS 1.8093 1.8445 1.9670 2.0033 Weighted Price Adjusted to 38% Moisture US 1.7234 1.7613 1.8765 1.9057 Sales Volume PoundsUS 9,957,084 10,390,836 9,243,193 8,873,736Weighted Moisture Content PercentUS 34.91 35.07 35.01 34.83

Butter

Weighted Price Dollars/PoundUS 2.0658 2.1117• 2.1275• 2.2202Sales Volume PoundsUS 2,483,685 2,591,357• 2,624,761• 2,552,651•

Dry Whey Prices

Weighted Price Dollars/PoundsUS 0.3060 0.2973 0.2976 0.2926Sales Volume US 6,661,643 7,083,257 6,145,046 7,001,043

Nonfat Dry Milk

Average Price Dollars/PoundUS 0.8984 0.8815• 0.8533 0.8644Sales Volume PoundsUS 15,423,762 13,188,672• 25,404,021 16,489,078

DAIRY PRODUCT SALESFederal Order Class 1 Minimum Prices & Other Advanced Prices - October 2016

Class I Base Price (3.5%) . . . . . . . . . . . . . . . . . . . . . . . . $16.60 (cwt)

Base Skim Milk Price for Class I . . . . . . . . . . . . . . . . . . . $8.78 (cwt)

Advanced Class III Skim Milk Pricing Factor . . . . . . . . . $8.78 (cwt)

Advanced Class IV Skim Milk Pricing Factor . . . . . . . . . $6.44 (cwt)

Advanced Butterfat Pricing Factor . . . . . . . . . . . . . . . . . $2.3223 (lb.)

Class II Skim Milk Price . . . . . . . . . . . . . . . . . . . . . . . . . $7.14 (cwt)

Class II Nonfat Solids Price . . . . . . . . . . . . . . . . . . . . . . $0.7933 (lb.)

Two-week Product Price Averages: Butter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2.0892 lb. Nonfat Dry Milk . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.8906 lb. Cheese . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1.7758 lb. Dry Whey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.3015 lb.

Base Class I Price was $16.60 per hundredweight for the month of October 2016. The price per hundredweight increased $0.04 from the previous month.Base Skim Milk Price for Class I was $8.78 per hundredweight for the month of October 2016. The price per hundredweight increased $0.61 from the previous month.

DAIRY FUTURES PRICESSETTLING PRICE *Cash SettledDate Month Class III* Class IV* Dry Whey* NDM* Butter* Cheese*9-16 September 16 16.36 14.24 30.350 88.600 206.750 1.75109-19 September 16 16.34 14.24 30.350 88.600 205.750 1.74809-20 September 16 16.35 14.23 30.350 88.675 205.750 1.74709-21 September 16 16.36 14.23 30.350 88.150 205.500 1.74909-22 September 16 16.38 14.23 30.700 88.750 206.275 1.750

9-16 October 16 16.07 14.72 34.500 95.500 203.250 1.69809-19 October 16 15.74 14.72 34.025 96.800 201.500 1.66309-20 October 16 16.20 14.72 34.275 96.475 199.500 1.71309-21 October 16 15.94 14.72 34.500 95.575 200.025 1.68109-22 October 16 15.66 14.72 33.800 94.250 204.500 1.76580

9-16 November 16 16.24 15.21 36.500 101.500 203.550 1.70109-19 November 16 16.01 15.29 36.500 102.100 202.500 1.68009-20 November 16 16.48 15.14 36.500 100.625 200.525 1.72309-21 November 16 16.15 15.14 36.250 99.00 200.775 1.69309-22 November 16 15.90 15.12 35.250 96.500 205.700 1.6730

9-16 December 16 16.00 15.38 37.000 104.150 201750 1.68009-19 December 16 15.88 15.49 36.300 105.500 200.025 1.66509-20 December 16 16.26 15.30 36.300 103.650 199.600 1.70109-21 December 16 15.96 15.24 36.300 103.650 199.750 1.68309-22 December 16 15.85 15.24 35.750 101.425 201.850 1.6680

9-16 January 17 15.86 15.45 37.800 107.750 198.000 1.65909-19 January 17 15.78 15.56 37.800 109.250 198.000 1.65109-20 January 17 15.94 15.37 37.800 106.500 197.600 1.67009-21 January 17 15.83 15.37 37.575 107.000 196.075 1.66009-22 January 17 15.78 15.37 36.500 104.425 199.000 1.6600

9-16 February 17 15.96 15.75 37.500 109.250 198.500 1.67209-19 February 17 15.90 15.75 37.500 111.500 198.500 1.66209-20 February 17 15.99 15.83 37.500 107.250 198.250 1.67009-21 February 17 15.90 15.83 37.500 110.000 198.425 1.66209-22 February 17 15.91 15.83 37.000 107.750 198.425 1.6690

9-16 March 17 16.05 15.88 38.000 111.925 199.500 1.67709-19 March 17 16.04 15.88 38.000 113.000 199.500 1.67209-20 March 17 16.05 15.92 38.000 110.000 199.500 1.67509-21 March 17 15.98 15.92 37.850 111.500 199.500 1.67009-22 March 17 15.93 15.92 37.500 110.000 200.000 1.6700

9-16 April 17 16.15 16.10 38.500 114.325 200.000 1.68109-19 April 17 16.10 16.10 38.500 114.375 200.000 1.68009-20 April 17 16.13 16.19 38.500 111.525 199.600 1.68209-21 April 17 16.01 16.19 38.300 114.000 199.600 1.67809-22 April 17 16.00 16.19 37.500 114.700 200.025 1.6740

9-16 May 17 16.23 16.30 38.500 117.500 200.600 1.69709-19 May 17 16.20 16.42 38.500 117.725 200.600 1.69709-20 May 17 16.22 16.41 38.500 114.000 200.300 1.69609-21 May 17 16.17 16.41 38.500 116.250 200.300 1.69009-22 May 17 16.15 16.41 38.000 116.250 200.300 1.6900

9-16 June 17 16.40 16.50 38.750 117.750 201.500 1.71509-19 June 17 16.38 16.56 38.750 118.800 201.500 1.71009-20 June 17 16.43 16.56 38.750 118.800 201.525 1.71209-21 June 17 16.36 16.58 38.700 118.500 201.525 1.70909-22 June 17 16.36 16.58 38.700 118.500 201.525 1.7090

9-16 July 17 16.64 16.66 38.800 118.575 204.500 1.72509-19 July 17 16.56 16.84 38.800 120.950 204.500 1.72409-20 July 17 16.62 16.84 38.800 120.950 204.500 1.72409-21 July 17 16.52 16.84 38.800 120.950 204.500 1.72409-22 July 17 16.51 16.84 38.800 120.950 204.500 1.7240Interest - Sept. 22 31,512 3,993 4,132 5,220 6,951 23,533

$1.25

$1.30

$1.35

$1.40

$1.45

$1.50

$1.55

$1.60

$1.65

$1.70

$1.75

$1.80

$1.85

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

40-Pound Block Avg

CME vsAMS

150

200

250

300

350

400

450

500

2011 2012 2013 2014 2015 2016

US Cheese Exports vs ImportsJanuary – July 2011- 2016; Million of pounds

$12.00

$14.00

$16.00

$18.00

$20.00

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

Class II Milk Price2015 vs. 2016

$12.00

$13.00

$14.00

$15.00

$16.00

$17.00

$18.00

$19.00

$20.00

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

Class IV Milk Price2015 vs. 2016

2015

2015

CHEESE REPORTERSeptember 23, 2016 Page 15Page 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

9/19/16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,759 87,7169/01/16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,497 89,021Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -2,738 -1,305

NATIONAL - SEPT. 16: Cheese manufacturers in the West and Midwest are seeking additional milk to fill production runs. Extra milk is generally available in the West, where facilities are running at or near full capacity. Midwestern manufacturers are having to reach out further to secure extra milk to keep facilities running at or just below capacity. Northeast milk supplies are mostly steady and cheese plants are keeping somewhat active schedules. Northeast production of Mozzarella and Cheddar for aging is steady, while process cheese interest is seasonally lighter. In the West, inventories for American and Italian cheese are long, but expected to be drawn down in coming months.

NORTHEAST- SEPT. 21: Extra milk supplies were available this week, increasing cheese production. Sources report a dairy operation in the region was unable to process milk supplies due to a maintenance problem. Prior to those loads becoming available, limited vol-umes of milk solids were obtainable, apart from contracted customer loads. Market demand for Mozzarella cheese continues to be very good with strong orders from foodservice and pizza makers. Cheddar manufacturers are comfortable with their current inventories. Wholesale prices, delivered, dollars per/lb:Cheddar 40-lb blocks: $2.0600 - $2.3450 Process 5-lb sliced: $1.7300 - $2.2100Muenster: $2.0450 - $2.3950 Swiss Cuts 10-14 lbs: $2.9175 - $3.2400

MIDWEST AREA - SEPT. 21: Cheese production is relatively steady. Some manufac-turers are scheduling maintenance days and others are not at full capacity. However, a few cheese makers report ramping up for fall cheese needs. Processors seem willing to take in a few extra loads of milk to bump up cheese production. Milk components are improving a little, but some cheese makers are still fortifying the cheese make process to bolster yields. Domestic cheese demand is mixed. Stocks are generally long for commercial varieties. Recent price decreases have allowed some manufacturers to clear inventories, however a few industry contacts suggest the price changes are giving some buyers pause. The buyers want to take a wait and see approach, buying only what is needed until the price settles.

Wholesale prices delivered, dollars per/lb: Process 5# Loaf: $1.6225 - $1.9825Brick/Muens 5# Loaf: $2.0300 - $2.4550 Cheddar 40# Block: $1.7575 - $2.1525Monterey Jack 10#: $2.0050 - $2.2100 Blue 5# Loaf: $2.2975 - $3.2850Mozzarella 5-6# (LMPS): $1.8300 - $2.7700 Grade A Swiss 6-9#: $2.4350 - $2.5525

WEST - SEPT. 21: Western cheese production is active. A few cheese manufacturers have had down days for repairs or maintenance, but facilities are mostly running near full capacity. Milk is in good supply. Export cheese markets remain soft, while domestic demand from retail and foodservice markets is firm. Cheese manufacturers say healthy amounts of bulk cheese are moving into cut and wrap facilities. A few end users suggest they are comfortable to work through inventories, but may be more interested to reenter the market if cheese prices continue to slide lower.

Wholesale prices delivered, dollars per/lb: Process 5# Loaf: $1.6375 - $1.8950Cheddar 40# Block: $1.7625 - $2.2075 Cheddar 10# Cuts: $1.9425 - $2.1625Monterey Jack 10#: $1.9525 - $2.1125 Grade A Swiss 6-9#: $2.4950 - $2.9250

FOREIGN -TYPE CHEESE - SEPT. 21: European cheese manufacturers continue to struggle to keep up with demand for cheese. Manufacturing volumes remain below desired levels, mostly due to lower milk supplies available for cheesemaking. This has resulted in aging stocks being below levels needed to meet projected future demand for aged cheese because cheese is being taken from aging to meet current demand. Customers seeking to obtain new orders of cheese in the near term are usually disappointed.

Selling prices, delivered, dollars per/lb: Imported DomesticBlue: $2.6400 - 5.2300 $2.2250 - 3.7125Gorgonzola: $3.6900 - 5.7400 $2.7325 - 3.4500Parmesan (Italy): 0 $3.6150 - 5.7050Romano (Cows Milk): 0 $3.4150 - 5.5650Sardo Romano (Argentine): $2.8500 - 4.7800 0Reggianito (Argentine): $3.2900 - 4.7800 0Jarlsberg (Brand): $2.9500 - 6.4500 0Swiss Cuts Switzerland: 0 $2.9550- 3.2775Swiss Cuts Finnish: $2.6700- 2.9300 0

NATIONAL - SEPT. 16: Butter churning is mostly steady across the nation as cream availability is improving. However, in the Central region, butter production is lower in a few processing plants as cream supplies fluctuate. In some regions of the country, microfixing is active in order to cover current needs and the anticipated high demand for Q4. Consequently, bulk butter inventories are decreasing, but print butter supplies are building. Demands from retailers and food service vary throughout the country.

NORTHEAST - SEPT. 21: Butter production dipped slightly this week as a maintenance issue slowed output at a large butter facility. Additionally, the level of sea-sonal milk supply into balancing restricts churning at some plants. Orders are steady as upcoming year-end needs continue to develop. As butter prices decline, feature activity supports an increase in retail butter orders. Stocks remain adequate for closed orders. Bulk butter prices range 5-8 over the market of the CME Group, with various time frames and averages used.

CENTRAL - SEPT. 21: Compared to the previous week, butter production is more active in the Central region as cream is more available. Bottled milk standardization is adding to cream supplies. In addition, the butterfat levels in the milk are improving. Processors are focusing production on print butter ahead of Q4 needs. Current demands

from foodservice are steady, but are higher from retailers. Regional bulk butter microfix-ing is active. This week, there are more bulk butter supplies available in the spot market. Print butter inventories are steady to build-ing. Bulk butter prices reported ranged from one cent under market to 7 cents over the market, with various periods and averages used. The national weighted average adver-tised price for a 1-pound package of butter is $3.64, $0.35 above one week ago and $0.24 higher than one year ago.

WEST - SEPT. 21: Western butter mak-ers continue to gear up for late year butter needs. Retail demand for butter is building. Butter production is active and a few butter makers are diverting excess cream into the churns. Some industry contacts suggest but-ter manufacturers are wanting to make sure they turn over their inventories. Processors seem willing to pull butter out of inventory to prepare it for retail market sales. Indus-try-wide butter inventories are still long, but many contacts are not concerned and feel Q4 demand will deflate stocks to more com-fortable levels. The US weighted average advertised price of 1-pound butter is $3.64, up $.35 from last week. The US weighted average price was $3.40 one year ago. In the Southwest, the weighted average adver-tised price of 1-pound butter is $4.40, with a price range of $2.99-$5.49. In the North-west, the weighted average advertised price of 1-pound butter is $3.79, with a price range of $3.59-$3.99.

ORGANIC DAIRY - RETAIL OVERVIEW

The US advertised price for 8-ounce conventional cheese blocks averaged $2.18, while 8-ounce organic block cheese averaged $4.72, an organic price premium of $2.54. Ads for conventional 8-ounce shred cheese averaged $2.16 while 8-ounce organic shred cheese averaged $3.50, an organic price premium of $1.34. The number of conventional cheese ads is stable, while organic cheese ads increased 3% this week. The national average price for 1-pound conventional butter is $3.19, while 1 pound organic butter is $5.15, an organic price premium of $1.96. Total conventional butter ads increased 26% while total organic butter ads decreased 1%. Advertisements for conventional ice cream in 48- to 64-ounce containers increased 33% and the national weighted average advertised price is $3.07. There are no ads for organic ice cream. The price premium of the organic half gallon milk price over the conventional half gallon milk price is $3.05. This represents the difference between the national weighted average price for organic, $4.15, and conventional, $1.10. Organic milk advertise-ments increased 1%, while ads for conventional milk increased 46%.

National Weighted Retail Avg Price: Cheese 8 oz block: $4.72Cheese 8 oz shred: $3.50Cottage Cheese 16 oz: $2.99Greek Yogurt 4-6 oz: $1.15Greek Yogurt 32 oz: NA

Yogurt 32 oz: $2.82Butter 1 lb: $5.15Cream Cheese 8 oz: $2.50Milk gallon: $6.19Milk ½ gallon: $4.15Sour Cream 16 oz: $2.49

RETAIL PRICES - CONVENTIONAL DAIRY - SEPTEMBER 23Commodity

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

Flavored Milk ½ gallon

Flavored Milk 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

3.19 3.32 3.00 2.94 3.04 2.61 3.30

2.18 2.17 2.25 1.90 2.42 2.24 1.74

3.56 5.03 3.33 3.21 3.16 3.50 NA

6.66 8.98 NA NA 5.99 NA 6.53

2.16 2.12 2.18 1.78 2.37 2.29 1.78

3.25 3.69 3.33 3.08 3.12 3.31 2.99

1.96 2.24 2.16 1.00 1.71 1.64 2.00

1.76 1.77 1.78 1.72 1.69 1.70 1.69

3.07 2.38 3.12 3.08 3.53 3.21 2.54

2.15 2.02 2.50 NA 1.94 NA 3.49

2.99 NA NA NA NA 2.99 NA

1.10 NA NA 1.00 1.24 1.00 1.08

2.32 2.18 2.62 1.55 2.19 2.31 1.99

1.62 1.62 1.87 1.21 1.32 1.61 1.71

.94 .96 1.01 .93 .83 .94 .92

4.32 4.25 4.49 4.62 3.99 4.49 3.23

.51 .50 .50 .48 .48 .60 .50

2.39 2.30 2.00 NA NA 2.95 NA

Butter 1# 3.19 3.32 3.00 2.94 3.04 2.61 3.30

Cheese 1# block 3.56 5.03 3.33 3.21 3.16 3.50 NA

Cheese 8 oz shred 2.16 2.12 2.18 1.78 2.37 2.29 1.78

Cottage Cheese 1.96 2.24 2.16 1.00 1.71 1.64 2.00

Ice Cream 48-64 oz 3.07 2.38 3.12 3.08 3.53 3.21 2.54

Flavored Milk gallon 2.99 NA NA NA NA 2.99 NA

Milk gallon 2.32 2.18 2.62 1.55 2.19 2.31 1.99

Yogurt (Greek) 4-6 oz .94 .96 1.01 .93 .83 .94 .92

Yogurt 4-6 oz .51 .50 .50 .48 .48 .60 .50

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

WHOLESALE BUTTER MARKETS

NDM - CENTRAL: F.O.B. sales of aged product pushed prices significantly lower at the bottom of the low/medium heat NDM range series. Current NDM production is unchanged from the previous week, as plants operate well below capac-ity in the Central region. Buyers’ purchas-ing interest is somewhat restrained as apprehension exists around future pricing. Low/medium nonfat dry milk stocks are variable. High heat nonfat dry milk prices adjusted higher this week. As end user demand improves, manufacturers are looking to expand high heat NDM invento-ries for Q4 year-end contracts. Stocks are sufficient for near term customer needs. The market undertone is mostly steady.

NDM - EAST: As pricing heads in a favorable direction for processors, buyer demand, in general, is slow to emerge for volume purchases at the higher price points. Seasonal production rates are mostly steady, however, several sources pointed out dryers in the region being down this week. Low/medium inventories remain adequate and continue to build for a few manufacturers. As prices firm, the market undertone remains unsettled. High heat NDM prices are higher in the range.

Production schedules are intermittent. Manufacturers are priming for typical sea-sonal demand as sellers note orders from bakery accounts are increasing. High heat NDM supplies used for spot market trading are scarce, as inventories remain tight. The market notes a willingness in some manufacturers to supply their cash mar-kets needs, but with a notably high pre-mium attached.

NDM - WEST: Trading activity has been moderate throughout the week. The market undertone is firm. Compared to the previous week, the resale market is more active. Some buyers/end users continue pushing NDM manufacturers in order to drop prices. Meanwhile, some NDM pro-cessors are anticipating higher prices in the near future. Consequently, they are holding stocks in lieu of selling. Low/medium heat NDM demand from bakers is inching up as the fall baking season approaches. Also, NDM usage for cheese fortification is active. NDM production is ongoing as moderate condensed skim vol-umes continue clearing into dryers. Inven-tories are steady to slightly lower. F.O.B. spot prices for high heat nonfat dry milk are steady to higher on very light trading.

DRY DAIRY PRODUCTS - SEPTEMBER 22

CHEESE REPORTERPage 16 September 23, 2016

CME CASH PRICES - SEPTEMBER 19 - 23, 2016Visit www.cheesereporter.com for daily prices

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

MONDAY $1.4750 $1.5875 $1.9675 $0.9200 September 19 (-½) (-6¼) (-3¼) (+1)

TUESDAY $1.5075 $1.5975 $1.9550 $0.9200 September 20 (+3¼) (+1) (-1¼) (NC)

WEDNESDAY $1.5100 $1.5850 $1.9675 $0.9225 September 21 (+¼) (-1¼) (+1¼) (+¼)

THURSDAY $1.5100 $1.5625 $2.0000 $0.9350 September 22 (NC) (-2¼) (+3¼) (+1¼)

FRIDAY $1.5100 $1.5600 $2.0275 $0.9350 September 23 (NC) (-¼) (+2¾) (NC)

Week’s AVG $1.5025 $1.5785 $1.9835 $0.9265 Change (-0.0270) (-0.0825) (-0.0325) (+0.0200)

Last Week’s $1.5295 $1.6610 $2.0160 $0.9065AVG

2015 AVG $1.5190 $1.6015 $2.9695 $0.9550 Same Week

MARKET OPINION - CHEESE REPORTER

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec‘04 1.3062 1.3958 1.8197 2.1687 1.9925 1.7105 1.4486 1.5734 1.5702 1.5170 1.6960 1.5923‘05 1.6269 1.4929 1.5317 1.5413 1.4774 1.5065 1.5035 1.4249 1.5639 1.4470 1.3756 1.4224‘06 1.3335 1.1989 1.1638 1.1651 1.8155 1.1924 1.1630 1.2354 1.2933 1.2347 1.3745 1.3223‘07 1.3180 1.3408 1.3823 1.4628 1.7211 2.0100 1.9138 1.9554 1.9929 1.8957 2.0926 2.0083‘08 1.8257 2.0023 1.8234 1.8826 2.0976 2.0350 1.9673 1.7398 1.8762 1.7963 1.7099 1.5132‘09 1.0833 1.2171 1.2455 1.2045 1.1394 1.1353 1.1516 1.3471 1.3294 1.4709 1.5788 1.6503‘10 1.4536 1.4526 1.2976 1.4182 1.4420 1.3961 1.5549 1.6367 1.7374 1.7246 1.4619 1.3807‘11 1.5140 1.9064 1.8125 1.6036 1.6858 2.0995 2.1150 1.9725 1.7561 1.7231 1.8716 1.6170‘12 1.5546 1.4793 1.5193 1.5039 1.5234 1.6313 1.6855 1.8262 1.9245 2.0757 1.9073 1.6619‘13 1.6965 1.6420 1.6240 1.8225 1.8052 1.7140 1.7074 1.7492 1.7956 1.8236 1.8478 1.9431‘14 2.2227 2.1945 2.3554 2.2439 2.0155 2.0237 1.9870 2.1820 2.3499 2.1932 1.9513 1.5938‘15 1.5218 1.5382 $1.5549 1.5890 1.6308 1.7052 1.6659 1.7111 1.6605 1.6674 1.6175 1.4616‘16 1.4757 1.4744 1.4877 1.4194 1.3174 1.5005 1.6613 1.7826

HISTORICAL MONTHLY AVERAGE BLOCK PRICES

WHEY MARKETS - SEPTEMBER 19 - 23, 2016RELEASE DATE - SEPTEMBER 22, 2016

Animal Feed Whey—Central: Milk Replacer: .2100(-1½) – .2900 (+2½)

Buttermilk Powder: Central & East: .8400 (+1) – .9000 (+1) West: .8000 (NC) – .9200 (NC) Mostly: .8200 (NC) – .8700 (NC)

Casein: Rennet: $3.0950 (+9) – $3.1200 (+5) Casein: Acid: $3.1100 (+7) – $3.1500 (+5)

Dry Whey Powder—Central (Edible): Nonhygroscopic: .2600 (+½) – .4100 (+1) Mostly: .2750 (NC) – .3350 (NC)

Dry Whey–West (Edible): Nonhygroscopic: .2850 (NC) – .4100 (+1) Mostly: .3000 (NC) – .3525 (+¾) Dry Whey—NE: .3000 (NC) – .3550 (+1)

Lactose—Central and West: Edible: .2300 (NC) – .4050 (NC) Mostly: .2800 (NC) – .3650 (NC) Nonfat Dry Milk —Central & East: Low/Medium Heat: .7800 (-6) – . 9800 (+1) Mostly: .9000(NC) – .9600 (+2) High Heat: 1.0000 (+2) - 1.0800 (+1) Nonfat Dry Milk —Western: Low/Medium Heat: .8465 (+2½) – 1.0000 (+2) Mostly: .9200 (+1½) –.9500 (+1½) High Heat: .9500 (NC) – 1.0700 (+1)

California Weighted Average NFDM: Price Total Sales September 16 $0.8710 12,245,635 September 9 $0.8612 9,688,100

Whey Protein Concentrate—Central and West: Edible 34% Protein: .5950 (-½) – .8750 (NC) Mostly: .6800 (+1) – .7875 (+¼)

Whole Milk—National: 1.2900 (NC) – 1.4500 (+10)

Cheese Comment: Three cars of blocks were sold Monday, the last on a bid at $1.6300; an uncovered offer of 1 car at $1.5875 then set the price. Tuesday’s block market activity was limited to an unfilled bid for 1 car at $1.5975, which raised the price. Eight cars of blocks were sold Wednesday; last sale was 1 car on an offer at $1.5850, which reduced the price. On Thursday, the block price fell on an uncovered offer of 1 car at $1.5625. Five cars of blocks were sold Friday, all on offers, the last at $1.5600, which reduced the price. The barrel price declined Monday on a bid-based sale of 1 car at $1.4750, increased Tuesday on unfilled bids for 2 cars at $1.5075 (11 cars of barrels were sold Tuesday, including 9 on bids at $1.5050), and rose Wednesday on a bid-based sale of 1 car at $1.5100.

Butter Comment: The butter price dropped Monday on uncovered offers of 2 cars at $1.9675, fell Tuesday on a bid-based sale of 1 car at $1.9550, rose Wednesday on a bid-based sale of 1 car at $1.9675, increased Thursday on a bid-based sale of 1 car at $2.0000, and rose Friday on an offer-based sale of 1 car at $2.0275.

NDM Comment: The nonfat dry milk price increased Monday on an offer-based sale of 1 car at 92.0 cents, rose Wednesday on a bid-based sale of 1 car at 92.25 cents, and increased Thursday on bid-based sales of 3 cars at 93.5 cents.

For more information, circle # 33 on the Reader Response Card on p. 14

USDA Seeking Maximum Of 88.9 Million Pounds Of Natural American Cheese For Delivery During 2017Washington—USDA’s Agricul-tural Marketing Service (AMS) on Thursday issued a bid invitation seeking a maximum of 88,886,400 pounds of natural American cheese for delivery during 2017.

Offers are due by 9:00 a.m. Cen-tral time on Thursday, October 13. For more information, contact Shirley Clayton, AMS, at (816) 926-6715; e-mail shirley.clayton@ams.usda.gov.

Offers should be submitted as a differential price per pound to the CME barrel cheese cash mar-ket price for barrel cheese and the CME 40-pound block Cheddar cash market price for the other natural American cheese. The contract price for a delivery month will be the total of the accepted differential price, plus the previous month’s average of the CME cash barrel or block cheese trading.

Estimated monthly maximums being sought are as follows:

Natural American 500-pound barrels: a maximum of 68,013,600 pounds, with a low of 816,000 pounds in June and a high of 10,730,400 pounds in July.

Cheddar 40-pound blocks (generic): a maximum of 4,284,000 pounds, with a low of 122,400 pounds in April and a high of 775,200 pounds in October.

Cheddar shredded 6/5-pound bags (generic): a max of 4,070,400 pounds, with a low of 38,400 pounds in May and June and a high of 883,200 pounds in August.

Cheddar, reduced fat shredded 6/5-pound bags (generic): a maxi-mum of 12,518,400 pounds, with a low of 38,400 pounds in May and a high of 1,996,800 pounds in July.

AMS will evaluate bids in response to this solicitation with-out discussions and will award a contract to the responsible bid-der whose bid, conforming to the solicitation, will be most advanta-geous to the government consider-ing only price and the price-related factors specified in the solicitation.

AMS may reject any or all bids; accept other than the lowest bid; and waive informalities or minor irregulatories in bids received.

Earlier this month, AMS had issued a bid solicitation for a total of 11,512,320 pounds of Ched-dar cheese for delivery between November 1, 2016, and March 31, 2017. Offers were due yesterday.

AMS also issued solicitations for up to 98,112,875 pounds of Mozz and up to 60,152,400 pounds of process American cheese.

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