t h w s l y cheese reporter 29, 2017.pdf ·  · 2017-12-29yogurts made from pili nuts, peas,...

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Coming Year Will See More Plant-Based Dairy Products, Upscale Mac N’ Cheese FDA Couldn’t Always Ensure That Firms Initiated Recalls, Didn’t Always Evaluate Hazards In Timely Manner: OIG S e r v i n g t h e W o r l d ' s D a i r y I n d u s t r y W e e k l y Since 1876 C HEESE REPORTER Vol. 142, No. 28 • Friday, December 29, 2017 • Madison, Wisconsin Deficiencies Found In FDA Food Recall Oversight And Monitoring the firm’s recall strategy, and any suggested strategy revisions. If the firm fails to voluntarily recall the violative product or FDA determines that the recall is ineffective, the agency may take appropriate regulatory action, including a mandatory recall. The OIG audit covered 30 voluntary food recalls (23 Class I an seven Class II) judgmen- tally selected from the 1,557 food recalls reported to FDA between Oct. 1, 2012, and May 4, 2015. OIG selected recalls based on risk factors related to the timing of the recall and other risk factors. Among other things, the OIG found that FDA could not always ensure that firms initiated recalls promptly. The 30 voluntary recalls that the OIG reviewed had a median of 29 days to initiate, with an average of 57 days. Initiation of these recalls ranged from nine days before to 303 days after FDA learned that the product was potentially haz- ardous. The timeliness of recalls depended primarily on how quickly firms chose to act on information • See FDA Recall Process, p. 7 Madison—Among the specialty food and culinary trend fore- casts for 2018 is a proliferation of plant-based products like cheese, yogurt and frozen desserts; up- market mac ‘n cheese and even greater transparency in product labeling. With food innovation run- ning at an all-time high, the Spe- cialty Food Association’s (SFA) Trendspotter Panel predicted the coming year will bring more plant-based foods, especially in the convenience category. SFA’s panel includes Ken Blanchette, FreshDirect; Jona- than Deutsch, Drexel University; Kara Nielsen, CCD Innovation; Perla Nieves and Alysis Vasquez, Midnight Market; Alison Tozzi Liu, James Beard Foundation; and Elly Truesdell, Whole Foods Market. Plant-based diets are dominat- ing the food world – especially now that the tech industry is using science to advance reci- pes and manipulate plant-based ingredients and proteins. Whole Foods Market men- tioned new production tech- niques creating “nut milks” and yogurts made from pili nuts, peas, bananas, macadamia nuts and pecans. Other popular dairy-free foods include vegan frosting, brownies, ice cream, brioche and creme brulee. San Francisco-based meal kit service Sun Basket also predicted a rise in alternative proteins and dairy. Soy products from tofu to tempeh remain popular, and con- sumers are increasingly turning to legumes, seeds, pseudocereals, whole grains and nuts for protein. • See 2018 Food Trends, p. 8 EU Expects To Supply 30% Of Increase In World Dairy Import Demand Through 2030 Brussels, Belgium—Global trade in cheese, butter, whole milk powder and skim milk powder is expected to grow on average by 1 million tons of milk equivalent per year through 2030, and the European Union (EU) expects to supply 30 percent of that increase, according to an EU agricultural outlook report published recently by the European Commission. The report presents predic- tions for EU agricultural markets, including dairy, for 2017 to 2030. The projected growth in global dairy trade is “significantly below” the average growth that’s been seen for almost all products in the last 10 years, the report said. The one exception is butter, for which trade will expand faster than in the last decade. Including whey powder and fresh dairy products, EU dairy exports are expected to grow on average by around 400,000 tons of milk equivalent per year, mainly in cheese and skim milk powder. Meanwhile, close to 900,000 tons of milk per year would be needed to satisfy the growth in EU domestic use, which will be mainly for cheese and for processing other dairy products such as dairy des- serts, fat-filled milk powders (a mix between dairy proteins and vegeta- ble fat with around 25 percent pro- tein content), infant milk formula, protein and whey concentrates. Alongside other comodities such as meat and tomatoes, more dairy products will be used as ingredients • See EU Dairy Exports, p. 6 Solvaira Specialties Acquired By The J. Rettenmaier Group North Tonawanda, NY—The newly formed Solvaira Specialty LP has announced the acquisition of the assets of Solvaira Special- ties Inc. by the J. Rettenmaier & Sohne Group. Solvaira Specialties was formed in 2015 through the joining of three companies: Allied Blend- ing & Ingredients, Keokuk, IA, which provides anti-caking sys- tems for shredded cheeses, among other products; International Fiber Corporation, North Tonawanda, NY, which also makes anti-caking systems for shredded cheeses; and Fibred-Maryland, Cumberland, MD, a provider of soy fiber prod- ucts for numerous food end-mar- kets, including dairy products. International Fiber had acquired • See Solvaira Acquired, p. 12 Washington—A new review of the US Food and Drug Adminis- tration’s food-recall process iden- tified deficiencies in the agency’s oversight of recall initiation, mon- itoring of recalls, and the recall information captured and main- tained in FDA’s electronic recall data system. Prior Office of Inspector General (OIG) reviews focused on FDA oversight of food recalls. At the time of those OIG reviews, FDA did not have statutory authority to require food companies to initiate recalls of most foods. After those reviews, enactment of the Food Safety Moderniza- tion Act (FSMA) gave FDA new authority to order a mandatory recall and require firms to recall certain harmful foods. The Office of Inspector General conducted the review it released this week to determine whether FDA is fulfilling its responsibility in safeguarding the US food supply now that it has mandatory recall authority. A recall is a company’s removal or correction of a marketed prod- uct that FDA considers to be in violation of the Food, Drug, and Cosmetic Act and against which FDA would initiate a legal action, such as a seizure. When FDA learns about a potentially hazardous product, the agency may inform the firm that the product violates the law and discuss the possibility of a recall with the firm without specifically requesting a recall. If the firm decides to recall the product, the firm’s action is considered a vol- untary recall. FDA will complete a health hazard evaluation (HHE) for each recall, which it uses to classify the recall and assess the firm’s recall strategy. A recall may be classified as Class I, II, or III, with Class I indicating the greatest health haz- ard. The FDA monitoring district office then sends a notification letter to the firm with the recall’s classification, FDA’s assessment of -1.5 0.5 2.5 4.5 6.5 CA WI ID NY TX MI PA MN NM Milk Production Percent Changes from Select States November 2017 vs. 2016

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Coming Year Will See More Plant-Based Dairy Products, Upscale Mac N’ Cheese

FDA Couldn’t Always Ensure That Firms Initiated Recalls, Didn’t Always Evaluate Hazards In Timely Manner: OIG

Serv

ing

theWorld's Dairy Industry W

eekly

Since 1876

CHEESE REPORTER Vol. 142, No. 28 • Friday, December 29, 2017 • Madison, Wisconsin

Deficiencies Found In FDA Food Recall Oversight And Monitoring

the firm’s recall strategy, and any suggested strategy revisions.

If the firm fails to voluntarily recall the violative product or FDA determines that the recall is ineffective, the agency may take appropriate regulatory action, including a mandatory recall.

The OIG audit covered 30 voluntary food recalls (23 Class I an seven Class II) judgmen-tally selected from the 1,557 food recalls reported to FDA between Oct. 1, 2012, and May 4, 2015. OIG selected recalls based on risk factors related to the timing of the recall and other risk factors.

Among other things, the OIG found that FDA could not always ensure that firms initiated recalls promptly.

The 30 voluntary recalls that the OIG reviewed had a median of 29 days to initiate, with an average of 57 days. Initiation of these recalls ranged from nine days before to 303 days after FDA learned that the product was potentially haz-ardous. The timeliness of recalls depended primarily on how quickly firms chose to act on information

• See FDA Recall Process, p. 7

Madison—Among the specialty food and culinary trend fore-casts for 2018 is a proliferation of plant-based products like cheese, yogurt and frozen desserts; up-market mac ‘n cheese and even greater transparency in product labeling.

With food innovation run-ning at an all-time high, the Spe-cialty Food Association’s (SFA) Trendspotter Panel predicted the coming year will bring more plant-based foods, especially in the convenience category.

SFA’s panel includes Ken Blanchette, FreshDirect; Jona-than Deutsch, Drexel University; Kara Nielsen, CCD Innovation; Perla Nieves and Alysis Vasquez, Midnight Market; Alison Tozzi Liu, James Beard Foundation; and Elly Truesdell, Whole Foods Market.

Plant-based diets are dominat-ing the food world – especially now that the tech industry is using science to advance reci-pes and manipulate plant-based ingredients and proteins.

Whole Foods Market men-tioned new production tech-niques creating “nut milks” and yogurts made from pili nuts, peas, bananas, macadamia nuts and pecans. Other popular dairy-free foods include vegan frosting, brownies, ice cream, brioche and creme brulee.

San Francisco-based meal kit service Sun Basket also predicted a rise in alternative proteins and dairy. Soy products from tofu to tempeh remain popular, and con-sumers are increasingly turning to legumes, seeds, pseudocereals, whole grains and nuts for protein.

• See 2018 Food Trends, p. 8

EU Expects To Supply 30% Of Increase In World Dairy Import Demand Through 2030Brussels, Belgium—Global trade in cheese, butter, whole milk powder and skim milk powder is expected to grow on average by 1 million tons of milk equivalent per year through 2030, and the European Union (EU) expects to supply 30 percent of that increase, according to an EU agricultural outlook report published recently by the European Commission.

The report presents predic-tions for EU agricultural markets, including dairy, for 2017 to 2030.

The projected growth in global dairy trade is “significantly below” the average growth that’s been seen for almost all products in the last 10 years, the report said. The one exception is butter, for which trade will expand faster than in the last decade.

Including whey powder and fresh dairy products, EU dairy exports are expected to grow on average by around 400,000 tons of milk equivalent per year, mainly in cheese and skim milk powder.

Meanwhile, close to 900,000 tons of milk per year would be needed to satisfy the growth in EU domestic use, which will be mainly for cheese and for processing other dairy products such as dairy des-serts, fat-filled milk powders (a mix between dairy proteins and vegeta-ble fat with around 25 percent pro-tein content), infant milk formula, protein and whey concentrates.

Alongside other comodities such as meat and tomatoes, more dairy products will be used as ingredients

• See EU Dairy Exports, p. 6

Solvaira Specialties Acquired By The J. Rettenmaier GroupNorth Tonawanda, NY—The newly formed Solvaira Specialty LP has announced the acquisition of the assets of Solvaira Special-ties Inc. by the J. Rettenmaier & Sohne Group.

Solvaira Specialties was formed in 2015 through the joining of three companies: Allied Blend-ing & Ingredients, Keokuk, IA, which provides anti-caking sys-tems for shredded cheeses, among other products; International Fiber Corporation, North Tonawanda, NY, which also makes anti-caking systems for shredded cheeses; and Fibred-Maryland, Cumberland, MD, a provider of soy fiber prod-ucts for numerous food end-mar-kets, including dairy products.

International Fiber had acquired

• See Solvaira Acquired, p. 12

Washington—A new review of the US Food and Drug Adminis-tration’s food-recall process iden-tified deficiencies in the agency’s oversight of recall initiation, mon-itoring of recalls, and the recall information captured and main-tained in FDA’s electronic recall data system.

Prior Office of Inspector General (OIG) reviews focused on FDA oversight of food recalls. At the time of those OIG reviews, FDA did not have statutory authority to require food companies to initiate recalls of most foods.

After those reviews, enactment of the Food Safety Moderniza-tion Act (FSMA) gave FDA new authority to order a mandatory recall and require firms to recall certain harmful foods.

The Office of Inspector General conducted the review it released this week to determine whether FDA is fulfilling its responsibility in safeguarding the US food supply now that it has mandatory recall authority.

A recall is a company’s removal or correction of a marketed prod-uct that FDA considers to be in violation of the Food, Drug, and Cosmetic Act and against which FDA would initiate a legal action, such as a seizure.

When FDA learns about a potentially hazardous product, the agency may inform the firm that the product violates the law and discuss the possibility of a recall with the firm without specifically requesting a recall. If the firm decides to recall the product, the firm’s action is considered a vol-untary recall.

FDA will complete a health hazard evaluation (HHE) for each recall, which it uses to classify the recall and assess the firm’s recall strategy. A recall may be classified as Class I, II, or III, with Class I indicating the greatest health haz-ard.

The FDA monitoring district office then sends a notification letter to the firm with the recall’s classification, FDA’s assessment of

-1.5

0.5

2.5

4.5

6.5

CA WI ID NY TX MI PA MN NM

Milk ProductionPercent Changes from Select States November 2017 vs. 2016

CHEESE REPORTERPage 2 December 29, 2017

Cheese Reporter Publishing Co. Inc. © 2017

2810 Crossroads Drive, Suite 3000Madison, WI 53718-7972

(608) 246-8430 • Fax (608) 246-8431http://www.cheesereporter.com

DICK GROVES

Publisher/Editore-mail: [email protected]

608-316-3791MOIRA CROWLEY

Specialty Cheese Editore-mail: [email protected]

608-316-3793

KEVIN THOME

Advertising & Marketing Directore-mail: [email protected]

608-316-3792

BETTY MERKES

Classifieds/Circulation Managere-mail: [email protected]

608-316-3790

REGULAR CONTRIBUTORS:Jim Brunker, Bob Cropp, Neville McNaughton,

Dan Strongin, John UmhoeferYou can e-mail our contributors at: [email protected]

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

California Cheese & Butter AssociationLisa Waters,

1011 Pebble Beach Dr, Clayton, CA 94517

Central Wisconsin Cheesemakers’ and Buttermakers’ Association

Janice Norwood [email protected]

Cheese Importers Association of America 204 E St. NE, Washington, DC 20002

Eastern Wisconsin Cheesemakers’ and Buttermakers’ Association

Barb Henning, Henning’s Cheese21812 Ucker Road, Kiel, WI 53042

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

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

Jamestown, MO 65046

Nebraska Cheese AssociationEd Price, Fremont, NE 68025

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

Cornell University, Ithaca, NY 14853

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

Brookings, SD 57007

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

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

Sugar Creek, OH 44681

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

Brookings, SD 57007

Southwestern Wisconsin Cheese Makers’ Association

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

Wisconsin Association for Food ProtectionBob Wills

PO Box 620705, Middleton WI 53562

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

Suite 402, Madison, WI 53718

Wisconsin Dairy Products AssociationBrad Legreid, 8383 Greenway Blvd.,

Middleton, WI 53562

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

under the TPP, US dairy exports to TPP member countries would increase $2.0 billion relative to the baseline, while dairy imports from all TPP members would increase $369 million after full implementation. Now, we’ll never know.

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

D I C K G R O V E S

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

EDITORIAL COMMENT

2017 From A Dairy Perspective: The Year Of TrumpTrying to figure out some sort of dairy-related “theme” for any given year is seldom if ever an easy under-taking, save for the occasional year when prices reach record highs, such as in 2014, or historic lows, such as in 2009; or when a far-reaching farm bill is passed, such as in 2014 (there’s that year again), when the farm bill terminated the Dairy Product Price Support Pro-gram, the Milk Income Loss Con-tract program and the Dairy Export Incentive Program and created the Margin Protection Program for dairy producers.

What about 2017? Was there an overriding theme this year? Well, we think so; this past year has clearly been the year of President Trump.

It’s difficult if not impossible to recall a President having more influence over the dairy industry in his first year in office. President Trump’s influence spanned the spectrum from domestic to inter-national issues.

On the domestic front, Trump’s first year will be remembered for several regulatory initiatives. For one thing, back in August, the US Food and Drug Administration issued guidance to industry stating that it will exercise enforcement discretion regarding the use and labeling of fluid ultrafiltered milk to make standardized cheeses and related cheese products.

To say this was a long-awaited decision would be an understate-ment; FDA was first petitioned on the fluid UF milk issue some 18 years ago, during the Clinton administration. So the new FDA guidance represented some mighty welcome progress on an issue of great importance to the dairy industry.

Meanwhile, the Trump admin-istration slowed the progress of at least a couple of FDA initiatives.

First, during President Obama’s final year in office, FDA had pub-lished final rules on the updated Nutrition Facts food label and on serving sizes. Compliance dates were set at July 2018 and July

2019, depending on the size of the food company.

Several months ago, FDA pro-posed to extend the Nutrition Facts and serving size final rules by about a year and a half, to Jan. 1, 2020, for larger companies and to Jan. 1, 2021, for smaller com-panies.

Second, FDA last spring decided to extend the compliance date for menu labeling requirements from May 5, 2017, to May 7, 2018. Those menu labeling rules apply to restaurants or similar retail food establishments that, among other things, sell restaurant-type foods.

Finally on the domestic front, FDA has invited comments and information to help the agency identify existing regulations that could be modified, repealed, or replaced to achieve meaningful burden reduction while still allow-ing the agency to achieve its public health mission. Comments are due by Feb. 5, 2018, after which the agency might decide to scrap some of its less-popular regulations (of which there are probably many).

It is arguably on the inter-national front that the Trump administration has had the most dairy-related impact this year, in both positive and negative ways.

Trump’s international activities began almost on day one of his administration. It was actually on Jan. 23, 2017, that Trump signed a memorandum directing the US Trade Representative to withdraw the US as a signatory to the Trans-Pacific Partnership.

The TPP, it may be recalled, included the US along with major dairy exporters such as New Zea-land and Australia and major dairy importers such as Japan and Mex-ico. A 2016 report from the US International Trade Commission concluded that, under the TPP, US dairy exports to TPP member countries would increase $2.0 bil-lion relative to the baseline, while dairy imports from all TPP mem-bers would increase $369 million after full implementation. Now, we’ll never know.

The TPP will continue without the US, and it can be expected that some US competitors will take advantage of reduced trade barriers in some countries. For example, New Zealand will gain new dairy market access to Japan, Mexico and Canada under the new Comprehensive and Progressive Agreement for TPP.

Several months after withdraw-ing from the TPP, the Trump administration announced its intention to renegotiate and mod-ernize the North American Free Trade Agreement. This is of course huge for the US dairy industry, since Mexico and Canada are the two largest markets for US dairy exports (on a value basis).

Five rounds of NAFTA talks have taken place so far, with another round scheduled for Janu-ary 2018. There is some specula-tion that the US will eventually withdraw from NAFTA, which would be a highly unfavorable development for a US dairy indus-try that is increasingly reliant on exports.

Specifically regarding Canada, Trump himself mentioned Can-ada’s dairy pricing policies on at least a couple of occasions last April, a real rarity for any Presi-dent. The US is attempting to resolve this issue in the ongoing NAFTA negotiations, but Canada appears intent on keeping its Class 7 pricing policy.

While the US has backpedaled on trade, many of its dairy com-petitors have continued to move forward. As noted earlier, the TPP (now the CPTPP) will move ahead without the US. Meanwhile, the European Union recently con-cluded trade talks with Japan, and just last week the EU and Mexico concluded the seventh round of talks on a new trade agreement.

President Trump and his admin-istration generated many dairy- and food-related headlines in 2017, and set the stage for much more to come. And he’s still got more than three years to go before his first term is finished.

CHEESE REPORTERDecember 29, 2017 Page 3

For more information, circle #1 on the Reader Response Card on p. 10

Evidence Didn’t Support Recommendations To Limit Intake Of Dietary Fat, Saturated FatLondon—National dietary rec-ommendations dating back to the late 1970s to reduce dietary fat and saturated fat intake lacked sup-porting evidence from randomized controlled trial (RCT) or prospec-tive cohort studies, according to a review published in the British Journal of Sports Medicine.

US public health dietary advice was announced by the Select Com-mittee on Nutrition and Human Needs in 1977 and was followed by UK public health dietary advice issued by the National Advisory Committee on Nutritional Educa-tion in 1983.

Recommendations focused on reducing dietary fat intake; spe-cifically, to reduce overall fat con-sumption to 30 percent of total energy intake (calories) and reduce saturated fat consumption to 10 percent of total energy intake. The recommendations were intended to address mortality from coronary heart disease (CHD).

This systematic review assessed if the published prospective cohort studies available to the dietary committees supported their recom-mendations on dietary fat. With this in mind, the review’s authors hypothesized that prospective cohort study evidence available to the dietary committees at the time of issuing recommendations did not support the contention that reducing dietary fat intake would contribute to a reduction in CHD risk or related mortality.

For this review, a search was undertaken to identify prospec-tive cohort studies that examined the relationship between dietary fat intake, serum cholesterol and mortality from CHD. The period searched was up to Sept. 5, 1983, as this was the date of the UK dietary guideline committee publication.

The six identified prospective cohort studies included 31,445 male participants, all but 337 of whom were over the age of 40 years at baseline and were followed for a minimum of four years and a maximum of 20 years.

None of ths six cohorts examined either of the introduced dietary guidelines: a total fat consump-tion of 30 percent or a saturated fat consumption of 10 percent, of energy intake. Three studies exam-ined the total fat intake and the saturated fat intake, as a percent-age of calorie intake, for men who died from CHD compared to men who remained alive.

None of the six studies found any significant relationship between CHD deaths and total dietary fat intake, while one of the six stud-ies found a statistically significant relationship between CHD deaths and saturated dietary fat intake.

One of the studies found a sta-tistically significant association

between CHD incidence and mean serum cholesterol and another of the studies found a statistically sig-nificant association between CHD deaths and infarctions and median serum cholesterol.

The main finding of this system-atic review is that “the epidemio-logical evidence available to the dietary committees did not sup-port the introduction of dietary fat guidelines.” There were two pro-spective cohort studies available to the US committee; neither were referenced. An additional four were available to the UK commit-tee, one of which was referenced.

“All available data was not taken into account by the dietary guideline committees and it would not have supported the introduced guidelines had it been considered.”

One study alone provided sup-port for the diet-heart hypoth-esis: the “Seven Countries Study,” which reported that CHD “tended to be related” to serum choles-terol values and that these in turn “tended to be related” to the pro-portion of calories provided by sat-urated fats in the diet. While the UK nutritional guidelines made reference to the Seven Countries Study, the US committee docu-ment did not.

The Seven Countries Study “suffered the most serious limita-tions,” according to the review: first of selection bias and second of not comparing the development of CHD against non-development of CHD in each cohort. Rather, it was an inter-country compari-son, comparing the development of CHD in one cohort/country with the development of CHD in another cohort/country, “which therefore introduced many other

confounders.”How might this review impact

on clinical practice in the future? The US 2015 dietary guidelines excluded recommendations for total fat for the first time, but main-tained the saturated fat advice.

“The pool of evidence does not support this recommendation,” the review stated. The UK advice has not changed since 1983. Dietary advice in the UK and the US at least need re-examination.

Also, protein is present in all foods, except pure fats and sucrose, and thus tends to form around 15 percent of total calorie intake, the review pointed out. Restrict-ing total fat intake to 30 percent concomitantly sets a carbohydrate intake of 55 percent.

“Diabetes and obesity have increased since guidelines to restrict fat intake. This association needs examination,” the review stated.

CHEESE REPORTERPage 4 December 29, 2017

C h e e s e m a r k e t i n g P r a c t i c e

Our Friend — Dan Carter

Dan StronginASQ CMQ/OEUncorporate Consultant

from our archives

50 YEARS AGODec. 29, 1967: Chicago—New controversy over pesticide resi-dues in milk and dairy products may affect dairy industry sales in the coming year. New FDA data found that the majority of milk and other dairy products mar-keted in the US contains minute but detectable quantities of one or more pesticides – about one-tenth of permissible levels.

Washington—A new federal milk marketing order that would merge five nearby milk order markets in a three-state area has been recommended by USDA. The new order would include Milwaukee, Madison, Rock River Valley, northeastern Wisconsin and northwestern Indiana as part of the Chicago market.

25 YEARS AGOJan. 1, 1993: Washington—President-elect Bill Clinton rounded out his Cabinet this week by announcing several appointments, including that of US Rep. Mike Espy (D-MS) as the next US secretary of agri-culture. Espy was described as a major Clinton campaign sup-porter and member of the cen-trist Democratic Leadership Council.

Madison—Stan Ferris, 79, involved in the Italian cheese field for over 40 years and per-haps best known as the origi-nator of the Marschall Italian Cheese Seminar, died Dec. 24, 1992. Ferris organized and chaired the first Marschall Invi-tational Cheese Seminar in 1964.

10 YEARS AGODec. 28, 2007: Ottawa, Ontario—The Canadian Food Inspection Agency this week published revised cheese iden-tity and compositional standards that are expected to boost rev-enues to milk producers, but increase costs to cheese proces-sors and consumers. The main purpose of these standards is to describe the basic requirements for cheese for consistent compo-sition and characteristics.

Appleton, WI—WOW Logis-tics is moving into its 31st year of business after transforming from a single warehouse to a leader in third-party logistics with 25 loca-tions in three states. Founder and co-owner Harold Schiferl estab-lished WOW in 1977.

My first real opportunity to inter-act closely with Dan Carter took place in the late 1980s. I was the corporate chef and director of the foodservice delis at a cutting-edge supermarket chain at the time, based in Berkeley, CA. Dan called me out of the blue, as I remember. He had come across a few pallets of block Cheddar lost in the back of walk-in for eight years. He was offering a reasonable price. I asked how much would it be if I bought all of it. He offered me a better price. I purchased it all. He delivered it all. People in Berkeley enjoyed it all, at a lovely cost benefit.

Over time we became close, talking a few times every quar-ter, catching up at the American Cheese Society conference. He wrote a gracious letter thanking me for the work I had done organizing the annual conference in the wine country in 1994. He wrote in dra-matic terms to all his friends about my physical condition at the time, having just completed brain sur-gery a few weeks before the confer-ence, and still managing to act as host with the bandages still on my head. He made me sound so heroic; even I started to think I was a hero.

Dan was like that, he always supported. Always spoke loudly of his support. He was a dynamic bun-dle of positive energy. There was nothing unusual in his treatment of me. He was like this with every-one. It was not flattery. It came from his heart. Of all the people I have known in my six and a half plus decades of life, Dan Carter was the essence of what is meant by: be interested to be interesting.

Mr. Carter was the greatest promoter I,

and everyone else who knew him, ever had. Dan

Carter truly embodied the meaning of lifetime

achievement.

When I assumed the presidency of the Cheese Society when it was in deep financial trouble, the Cart-ers, Dan and Jane, were among my most vocal supporters, along with Andrea Neu and the Wisconsin Milk Marketing Board, whose gen-erosity helped save the Society at the time.

Our friendship, as well as our professional collaboration, grew. A decade later Dan grabbed me at the Cheese Society conference, having heard I was no longer consulting

for the California Milk Advisory Board.

With Laurie Greenberg, he had written a grant to create a Dairy Business Innovation Center in the state of Wisconsin, whose dairy industry was under pressure after decades of depending solely on providing cheese to mass manufac-turers of block Cheddar. Margins were declining to less than a penny profit per pound, and the industry had lost its way at a time when the rising renaissance in American Artisan Cheese was finally win-ning space again on the shelves from the slick European specialty cheese marketing machine.

I was one of the first he invited to join. Together, the DBIC team did amazing things. In the five years I was involved, before the Feds cut the funding, due to a change in the priorities of government from public service to increasing private wealth, what we accomplished was mind-boggling. In the most glow-ing letter of recommendation I have ever received, Dan wrote, in those first five years, when I was helping lead the DBIC (with oth-ers Mr. Carter…), we nurtured: 43 New Cheese Plants 54 New Varieties of Cheese

and other innovative dairy prod-ucts $1.2 billion reinvested in

Wisconsin Cheese Which went on to win top

international product awards And Wisconsin grew to pro-

duce 46 percent of all specialty cheese in the US.

Incredible accomplishments by any standard, and in the ensuing years, as my former teammates con-tinued their valuable work as best they could, under constant threat of losing their funding, even more was accomplished.

People say Dan was the greatest promoter Wisconsin Cheese ever had. He was a Native Son, but so much more. Mr. Carter was the greatest promoter I, and everyone else who knew him, ever had. He was our friend. He was our men-tor. Of all the fantastic people who have won the American Cheese Society Lifetime Achievement Award, with no disrespect to them, Dan Carter truly embodied the meaning of lifetime achievement.

And, he was not alone. No one can talk of Dan Carter without speaking of his wife Jane at the same time. They were, and they always will be, the Carters, one of the most productive, gracious, and competent teams the dairy industry will ever produce. Jane Carter is also our friend, and our prayers and our love are pouring out to her in what has to be a difficult time.

The motto of my consulting practice is “Good people work-ing together towards a worthwhile goal, with a little knowledge, can accomplish amazing things.” Man, that is Dan and Jane!

CHEESE REPORTERDecember 29, 2017 Page 5

M A R C H 6 – 8

2018

THANK YOU TO OUR CONTEST SPONSORS:

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CHEESE REPORTERPage 6 December 29, 2017

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EU Dairy Exports(Continued from p. 1)

to meet the rising demand for pro-cessed foods such as pizza, prepared meals, pastry and cakes. By con-trast, direct consumption of liq-uid milk is expected to continue declining.

Sustained EU and global demand is expected to drive an increase in EU milk production below 1 percent per year (or 1.4 million tons). This growth can be seen as moderate when consider-ing that the EU increased deliver-ies by 10 million tons in two years between 2014 and 2016.

However, since the EU will be competing with New Zealand and the US, this level of growth matches the potential increase in demand.

Cheese Consumption To GrowThe main driver of cheese con-sumption growth is its processing use on the EU and export markets, the report said. The volume of ready meals manufactured in the EU increased by close to 20 per-cent between 2010 and 2016.

More specifically, retail sales and the use of Mozzarella in cater-ing increased by more than 10 per-cent over the same period, mainly for pizzas. Also, for exports, Moz-zarella now represents more than 10 percent of EU cheese exports, according to the report.

Per capita EU cheese consump-tion is expected to further grow by two kilograms (4.4 pounds) to 20.4 kilograms (44.9 pounds) by 2030. The highest increase is expected in the EU-N13.

On the cheese export market, besides China, other main grow-ing markets for the EU are Japan, South Korea, the US and the Mid-dle East. Export of Cream cheeses and Cheddar are growing the fast-

est. Cheddar exports are growing particularly strongly to Saudi Ara-bia and Egypt.

The EU is expected to export close to 1.2 million tons (2.65 bil-lion pounds) of cheese by 2030 and to supply close to 40 percent of world import demand.

The unitary value (value of exports divided by quantities) of EU cheese exports is higher than the EU’s main competitors (60 percent higher than New Zealand and 30 percent higher than the US in 2016), the report said.

This difference highlights the diversity of EU cheese exports, composed of a higher share of hard cheeses and of several geographical indications.

Global Butter Demand GrowingThe market situation with butter prices “skyrocketing” above 5,000 euros per ton is not expected to last over the medium term, the report said. Sustained demand for dairy fats will remain, but with New Zealand resuming its regular milk production level and with the expected higher milk production in the EU, prices will ease. Over the medium term, the relation-ship between butter and skim milk powder (SMP) prices is expected to come closer to previous levels.

On top of higher retail sales, butter, and dairy fat more gener-ally, is increasingly used for pro-cessing, particularly in bakery manufacturing.

Therefore, global import demand is expected to increase faster than in the past, by close to 30,000 tons each year. S

till, less than 10 percent of world butter production will be traded by 2030.

This increased demand will drive higher EU butter exports, projected at 250,000 tons in 2030. Given the dominant position of New Zealand producing cheaper

butter, the EU should be able to supply 20 percent of world demand.

On the EU market, per capita butter consumption is expected to reach 4.6 kilograms (10.1 pounds) in 2030, which is a continuation of the increasing trend but slightly slowed down. The projected level of EU butter production is 2.6 million tons in 2030, an annual increase of 1 percent per year.

This growth will be supported by an anticipated small increase milkfat content of 0.8 percent in 13 years, to 4.08 percent.

SMP Exports Jump 40%The strong and fast increase in EU milk production between 2013 and 2015 coincided with the introduc-tion of the Russian import ban and with a significant drop in Chinese purchases. Therefore, large quan-tities of milk were processed into storable products, namely SMP and butter.

As a result, SMP prices dropped to intervention price level and public purchases in 2015-17 led to an intervention stock of 375,000 tons by the end of 2017, or around three months of SMP production.

In 2017, after several years of strong increases, SMP produc-tion dropped by 5 percent, while exports jumped by close to 40 per-cent, boosted by low prices.

Domestic SMP use also steadily increased, which is why private stocks should be very low by the end of 2017.

For the following years, one working assumption is that public stocks would be released in the next three years, with no additional pur-chases taking place. In 2018, SMP demand is expected to be sustained and the production increase will be small because cheese production will remain more profitable.

EU and global demand is expected to support the SMP mar-ket in the long run and lead to a recovery in the average price to over 2,500 euros a ton after 2020.

Global SMP imports are expected to grow annually on aver-age by 45,000 tons over the out-look period, while EU domestic use should steadily increase (plus 1.5 percent pear year). EU exports are projected at 1 million tons in 2030, while production should almost double. In total, the EU should supply more than 30 percent of world SMP demand.

The whole milk powder mar-ket is projected to grow slowly to 900,000 tons of production in 2030, half of which will be exported and half consumed domestically (to produce choco-late in particular). The EU is less competitive on the WMP market; by 2030, it is expected to supply less than 15 percent of the world import demand.

The EU market share was much higher in the past, standing at around 30 percent 10 years ago, the report pointed out.

ICTE Expanded Exhibit Floor Featuring 295 Companies Now Completely Sold OutMilwaukee, WI—After a major expansion of the exhibit floor at the International Cheese Tech-nology Expo (ICTE), event orga-nizers announced recently that all booth space has now been filled.

The three-day expo will take place here April 17-19 at the Wisconsin Center.

“Demand has never been stronger for space, once again proving the value our industry places in ICTE,” said Judy Keller, events director for ICTE co-host, the Wisconsin Cheese Makers Association (WCMA).

“We’re pleased to connect c h e e s e makers, b u t t e r m a k -ers, and w h e y proces-s o r s w i t h t rus ted companies that can supply them with the technology, goods, and services needed to make the world’s best dairy products,” Keller said.

ICTE 2018’s exhibit floor will feature 295 companies offering everything from air and water treatment to cheesemaking equipment, and from ingredients to robotics.

A complete list of exhibitors and a show floor plan is now available online.

Dairy manufacturing and processing personnel have free access to ICTE 2018 exhibits, buffet lunches, and receptions, organizers stated.

“The goal of ICTE 2018 is to bring the industry together, both for exhibits and for education,” Keller said.

“Our impressive array of semi-nars, offered in partnership with the world-renowned Center for Dairy Research, is designed to offer something of interest and value to everyone from the CEO to the packaging line lead,” she continued.

ICTE 2018 seminars focus on challenges in global trade, pathogen control and food safety, cheese quality issues and solu-tions, growth opportunities in specialty cheese, and on whey and dairy proteins.

Two limited tracks are also being offered for artisan cheese makers and for human resources and managerial staff, Judy Keller explained.

For full details or to register online, visit www.CheeseExpo.org.

CHEESE REPORTERDecember 29, 2017 Page 7

FDA Is Committed To Continuously Improving Recall Policy, Practices, Commissioner SaysWashington—The US Food and Drug Administration (FDA) is committed to “continuously improving our policies and prac-tices” to ensure that food recalls are initiated, overseen, and com-pleted promptly and effectively to best protect consumers, according to FDA Commissioner Scott Got-tlieb.

He made his comments in response to a review of FDA’s recall policies and procedures that was released Tuesday by the Office of Inspector General (OIG).

“Making sure the FDA has effective recall practices in place, and that we take immediate action to address unsafe foods, are high priorities of mine,” Gottlieb stated.

FDA has authority to act in a variety of ways when it is made aware of an unsafe food product, but “often the fastest and most effi-cient way to ensure unsafe foods are recalled quickly is by work-ing directly with the involved companies while simultaneously providing the public with timely, accurate information that they can act on,” Gottlieb noted.

“Among other steps, I want to do even more to make sure that consumers have the information they need to avoid hazardous prod-ucts that are the subject of recalls, or to seek assistance if they may have been exposed to a recalled food product,” he continued. “The FDA is exploring various ways to better accomplish this goal.”

Among other steps, the agency will issue guidance on recall com-munications in the first half of 2018, Gottlieb stated. FDA is examining in what situations it can help consumers get informa-tion about the stores and foodser-vice locations that may have sold or distributed a potentially unsafe, recalled food, and what company may have supplied the product.

Last year, FDA developed a new strategic plan that outlines actions to improve its recall management, Gottlieb noted. The plan helps to standardize how the agency assesses a company’s recall efforts, and provides additional training to its staff involved in recall efforts so they can properly monitor and assess the effectiveness of a recall.

“Building on these early efforts, we intend to say more in early 2018 on additional policy steps we’ll take as part of a broader action plan to improve our oversight of food safety and how we implement the recall process,” Gottlieb com-mented. “We’re looking at ways to improve the timeliness and scope of information we provide to the public about recalls of FDA regu-lated foods.”

FDA Recall Process(Continued from p. 1)

they received from FDA or other sources indicating that their prod-ucts were potentially hazardous. When firms acted promptly by voluntarily initiating a recall, FDA did not need to take further action to recall the product.

By contrast, when FDA and a firm disputed the lawfulness of a product or when firms were reluc-tant to initiate timely recalls, FDA’s food-recall initiation pro-cess could not always ensure that the food supply was protected from hazardous products, OIG noted.

As an example cited in the review, which involved a series of recalls of various cheese products contaminated with Listeria mono-cytogenes, 81 days passed from the date FDA became aware of the adulterated product and the date the firm had voluntarily recalled all affected products (Oasis Brands, Inc.; Class I).

During that time, the firm’s owner agreed with FDA to sus-pend manufacturing and temporar-ily halt its distribution of cheese, OIG noted. However, the owner then had multiple trays of cheese, which had been held in processing, packaged and distributed.

The OIG audit also found that:FDA did not always evaluate

health hazards in a timely man-ner. For 14 of the 30 recalls for which FDA did not rely on a prec-edent HHE, the median working days to complete the HHE after learning of a planned or in-progress recall was 27 working days, with an average of 47 working days. Com-pletion of the HHE ranged from eight working days before learning of a planned or in-progress recall to 209 working days after learning of a planned or in-progress recall.

FDA did not always issue audit

check assignments consistent with the level in the proposed audit program. For 19 of the 27 recalls (for three of the 30 recalls, FDA determined that it was not necessary to assign audit checks), the FDA monitoring district office issued audit check assignments at the level of the proposed audit program. For the remaining eight recalls, the FDA monitoring dis-trict office issued fewer audit check assignments than what was required for the level of the pro-posed audit program.

FDA did not always complete audit checks in accordance with procedures. FDA conducted audit checks at 25 of the 30 firms with recalls in the OIG’s sample. For four of the 25 recalls, FDA com-pleted the last audit check within 20 days of issuance of the firm’s recall communication. For the remaining 21 recalls, FDA did not complete the last audit check within 20 days of the issuance of the firm’s recall communication.

FDA did not always col-lect timely and complete status reports from recalling firms. For 11 of the 30 recalls, FDA either did not request or did not collect sta-tus reports. For the remaining 19 recalls, the median days for FDA to collect the first status report was 122 days (with an average of 143 days and a range of 14 to 605 days) after the recalls were initiated.

FDA did not track key recall data in the electronic Recall Enterprise System (RES). The RES is an electronic data system used by FDA recall personnel to submit, update, classify, and termi-nate recalls. For 11 of the 30 recalls OIG sampled, the RES contained an inaccurate recall initiation date. Without an accurate recall initiation date documented in the RES, FDA could not use the RES to determine the length of time it

took a firm to initiate a recall.The OIG recommended, among

other things, that FDA:Establish set timeframes,

through its Strategic Coordinated Oversight of Recall Execution (SCORE) initiative, for: FDA to discuss the possibility of a volun-tary recall with a firm; and FDA initiate use of its mandatory recall authority after it has made the determination that the legal stan-dard for use of that authority has been met and a firm is not willing to voluntarily conduct a recall;Include in its recall audit plan

a step to monitor when the recall alert was submitted to the RES;Finalize its interim mandatory

recall procedures and consider issu-ing guidance for FDA staff on those factors that staff should consider when determining whether there is a reasonable probability that a food could cause serious adverse health consequence or death;Ensure, through its recall audit

plan, that audit checks are issued at the level specified in the FDA audit program;Develop procedures to deter-

mine whether a reconciliation of distribution lists to shipping records is necessary to ensure that FDA uses complete and accurate distribution lists when assigning audit checks;Increase the use of third-party

audit checks through its recall stra-tegic plan;Improve audit check tracking

and monitoring using the RES or another FDA system;Develop a policy for defining

a procedure for identifying ret-rospectively the date that FDA learns of a potentially hazardous product; andEstablish measures for the

amount of time between the date FDA learns of a product and a date a firm initiates a voluntary recall.

CHEESE REPORTERPage 8 December 29, 2017

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2018 Food Trends(Continued from p. 1)

Nuts in particular continue to gain popularity as a source for alterna-tive dairy products, Sun Basket reported, from milk to cream sauces and even aged cheeses.

The year 2018 will also be the year of cleaner, more mind-ful eating, Sun Basket continued. Younger consumers are less focused on “being on a diet” and more in search of foods that make them feel more energized, improve diges-tion and reduce inflammation.

For some, it’s a move toward more plant-focused eating – either vegan or vegetarian, sometimes with the occasional animal-based proteins.

Pescatarians, flexitarians, redu-citarians and “chegans” – vegans who cheat – are indicators of this trend.

Food Labels: More TransparencyMore is more when it comes to product labeling, according to SFA’s Trendspotter Panel. Consumers will seek greater on-label visibility into the farms, ingredient sources, and supply chain of each item in their shop-ping basket.

GMO transparency is among the most prioritized details, but shoppers want new depths of information across the spectrum, including Fair Trade certification, responsible production, and no animal testing.

The FDA’s deadline for nutri-tion labeling is among the first regulatory steps for greater trans-parency, but industry members should expect consumers and brand to continue leading the way into a new era of product intel.

As consumers become more aware of how much food is wasted in the US, upcycled products made of ingredients and scraps that would have otherwise been dis-carded, will also hold bigger appeal – juice made from imperfect fruit, chips made from fruit pulp, and snack bars made from spent grain from the beermaking process.

Culinary Trends Feature BrownButter, Mac n’ Cheese, Goth FoodAmong the culinary trends pre-dicted for 2018 is mac n’ cheese “outside the box,” according to market research firm Packaged Facts.

The popular comfort food is being adapted and re-adapted into signature entrees and premium side-dishes – marketed as socially-sharable for the Millennial set.

Restaurant menus will show-case mac n’ cheese as a fried bite-sized snack, bar food, alternative to French fries, mashed on top of sandwiches and poured into pou-tine.

Another culinary trend germane to the dairy industry will be an increase in the use of brown but-

ter – regular butter that has been cooked just long enough to toast the milk solids.

Brown butter will be used in baking – apple pie, brownies, choc-olate chip cookies; as an ingredient in ice cream; and as an upscale top-ping for popcorn.

Possibly a reaction to the 2017’s deluge of rainbow and unicorn foods, black is the new black, according to SFA’s Trendspotter Panel.

Activated charcoal – produced by heating coconut shells to extremely high temperatures until they are carbonized – is gaining superfood status for its reported detoxifying attributes and is being used in everything from pizza crust to lemonade to ice cream.

As far as the top concept trends are concerned, the National Res-taurant Association (NRA), “hyper-local – restaurant gardens, on-site beer brewing, house-made items – landed in the top spot, identified as hot by 74 percent of those surveyed.

Chef-driven fast casual con-cepts, natural ingredients/clean menus, food waste reduction, and veggie-centric/vegetable-forward cuisine – fresh produce is star of the dish – round out the top five trends.

“Local, vegetable-forward, and ethnic-inspired menu items will reign supreme in the upcoming year,” Hudson Riehle, National Restaurant Association senior vice president of research.

“Guests are implementing these trends in their own lifestyles and want to see them reflected on res-taurant menus,” Riehle said. “In response, chefs are creating more items in-house and turning to global flavors.”

NRA: Artisan Cheese, Ice CreamTrend Losing SteamNRA also collected a list of “Trends Heating Up” and “Trends Cooling Down,” with the artisan cheese trend topping the Cooling Down list.

Other trends losing favor accord-ing to NRA include heirloom fruit and vegetables; house-made char-cuterie; house-made/artisan ice cream; house-made sausage; meal kits; nutrition; protein-rich grains/seeds; savory desserts; and whole grain items in kids’ meals.

NRA’s list of “Heating Up” trends include doughnuts with nontraditional filling; ethnic-inspired kids’ dishes; farm/estate-branded items; heritage-breed meats; Peruvian cuisine; Thai-rolled ice cream; uncommon herbs; vegetable carb substitutes; and veggie-centric/vegetable-forward cuisine.

NRA’s “Perennial Favorites” feature milk or juice in kids’ meals, gelato and comfort food. It’s list of “Yesterday’s News” includes meals in mason jars, flavored popcorn, and pumpkin spice.

PERSONNELVAN KRAMER has been selected as senior vice president and chief financial officer for California Dairies, Inc. (CDI). In his new role, Kramer will be in charge of the cooperative’s financial, accounting, treasury, information technology and risk management functions. He comes to CDI with more than 30 years of financial management experience, most

recently serving as CFO for Adams Group, Inc. Kramer also worked as the interim CFO for Glanbia Foods, Inc., where he managed finance and accounting functions for the company as it underwent an extensive restruc-turing project. Kramer also served as manager of cost accounting at Darigold, Inc. and production projects manager/plant control-ler at Leprino Foods.

USDA Announces National Dairy Board Appointments, Seeks Fluid Milk Processor Board NomineesWashington—US Secretary of Agriculture Sonny Perdue recently announced the appoint-ment of 12 dairy producers and one importer to serve three-year terms on the National Dairy Pro-motion and Research Board.

Their terms begin immediately and end on Oct. 31, 2020.

Newly appointed producers are: DOLORES WERKHOVEN, Monroe, WA, Region 1 (AK, OR, and WA); ORVILLE MILLER, Hutchinson, KS, Region 4 (AR, KS, NM, OK, and TX); STACY EBERLE, Monroe, WI and BECKY LEVZOW, Rio, WI, Region 6 (WI); ALEX PETER-SON, Trenton, MO, Region 7 (IL, IA, MO, and NB); GREG-ORY GIBSON, Bruceton Mills, WV, Region 9 (IN, MI, OH, and WV); JOHN LARSON, Okeechobee, FL, Region 10 (AL, DC, FL, GA, KY, LA, MS, NC Puerto Rico, SC, TN, and VA); and MELISSA DZIURGOT, Durham, CT, Region 12 (CT, ME, MA, NH, NY, RI, and VT).

Reappointed producers are: JAMES WEBB, Delta, CO, Region 3 (AZ, CO, MT, NV, UT, and WY); WILLIAM ANGLIN, Bentonville, AK, Region 4; KATHLEEN SKIBA, North Branch, MN, Region 5 (MN, ND and SD); and JOHN BALLARD, Gooding, ID, Region 8 (Idaho).

RALPH HOFFMAN of Bask-ing Ridge, NJ, is the newly appointed dairy importer.Nomination Deadline Is Jan. 12The USDA is asking fluid milk processors and other interested

parties to nominate candidates to serve on the National Fluid Milk Processor Promotion Board.

The deadline for nominations is Jan. 12, 2018.

Perdue will appoint eight indi-viduals to succeed members whose terms expire on June 30, 2018, and two members to fill vacant positions with terms expiring on June 30, 2019.

USDA will accept nomina-tions for board representation in six geographic regions and two at-large positions. Nominees for the regional positions must be active owners or employees of a fluid milk processor. At least one at-large position must be a mem-ber of the general public.

The geographic regions with vacancies are: Region 3 (DE, MD, PA, VA, and District of Colum-bia); Region 6 (OH and WV); Region 8 (IL and IN); Region 9 (AL, KY, LA, MS, and TN); Region 12 (AZ, CO, NM, NV, and UT); and Region 15 (South-ern California).

USDA will accept nomina-tions to fill a position in Region 4 (GA, NC, and SC), and a at-large position, to serve a one-year term expiring on June 30, 2019.

Fluid milk processors and inter-ested parties may submit nomina-tions for regions in which they are located or market fluid milk, and for at-large members.

To nominate submit a copy of the nomination form and a signed background form for each nomi-nee by Jan. 12, to: Emily DeBord, Promotion, Research, and Plan-ning Division, Dairy Program, AMS, USDA, 1400 Indepen-dence Ave., S.W., Stop 0233, Room 2958-S, Washington, DC 20250-0233, or via email at [email protected]. For nomi-nating forms and details, visit www.ams.usda.gov.

CHEESE REPORTERDecember 29, 2017 Page 9

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80 Years of CombinedExperience and Honestyin the Sale of:• Separators, Clari�ers & Centrifuges• Surplus Westfalia & Alfa Laval Parts• Unbeatable Pricing• 24/7 Trouble Shooting

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COME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSWHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING SEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERS

Call Dave Lambert at (920) 863-3306 or Dick Lambert at (920) 825-7468

GREAT LAKES SEPARATORS, INC.GREAT LAKES SEPARATORS, INC.GREAT LAKES SEPARATORS, INC.GREAT LAKES SEPARATORS, INC.P: (920) 863-3306 • F: (920) 863-6485

E: [email protected]

The Plant Supervisor is responsible for improving produc�on opera�ons at the facility. This individual will work closely with all departments to establishprocess methods that ensure opera�onal effec�veness and produc�on adherence. The Plant Supervisor is responsible for the development, implem-enta�on and maintenance of the job training program. Strong collabora�onis needed across the plant and the en�re AMPI organiza�on.

Monitor produc�on cleanups. Provide analy�cal input to improve labor u�liza�on and efficiencies during sanita�on processes. Work jointly with maintenance to iden�fy equipment issues, establish day to day op- opera�onal priori�es and improve machine up�me. Facilitate produc�on expecta�ons with plant personnel; ensuring that goals are met on a day to day, month to month basis. Ensure that produc�on equipment setups are completed in the �meframe required to meet department expecta�ons and efficiencies. Establish training procedures and processes that provide strategic ac�on plans to im- prove job knowledge and training. Build a strong working rela�onship with plant personnel, providing leadership, teach- ing, and effec�ve communica�on methods, that ensure enforcement of company policies and procedures. Will be the liaison for the produc�on floor so�ware which will include addressing system performance issues and training. Provide direct support to the Safety Coordinator by assis�ng with changes and updates to various policies and procedures of the safety program. Review and approve cheese department payroll. Provide absentee coverage for the Produc�on Coordinator.

3 plus years cheese making experience; 5 plus years supervisory experience; 4 year college degree or equivalent experience.

Apply online at: www.ampi.com

AMPI is an EEO employer – Veterans/Disabled and other protected categories

CHEESE PLANT SUPERVISOR

JOB SUMMARY

ESSENTIAL RESPONSIBILITIES

EDUCATION/EXPERIENCE

CHEESE REPORTERPage 10 December 29, 2017

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_______________

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Issue Date: 12/29/17

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December 27, 2017—AMS’ National Dairy Products Sales Report. Prices included are provided each week by manufacturers. Prices collected are for the (wholesale) point of sale for natural, unaged Cheddar; boxes of butter meeting USDA standards; Extra Grade edible dry whey; and Extra Grade and USPH Grade A nonfortified NFDM. •Revised

WEEK ENDINGStyle and Region Dec. 23 Dec. 16 Dec. 9 Dec. 2

40-Pound Block Cheddar Cheese Prices and Sales Weighted Price Dollars/PoundUS 1.5443 1.5894• 1.6547 1.6853 Sales Volume PoundsUS 11,625,168 12,400,601• 13,831,757 13,967,177

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

Weighted Price Dollars/PoundUS 1.7341 1.7201 1.7497 1.8107 Weighted Price Adjusted to 38% Moisture US 1.6489 1.6349 1.6644 1.7242 Sales Volume PoundsUS 10,815,771 12,087,712 12,758,611 12,684,103Weighted Moisture Content PercentUS 34.80 34.77 34.82 34.89

Butter

Weighted Price Dollars/PoundUS 2.2357 2.2221• 2.2299 2.2443Sales Volume PoundsUS 2,445,615 2,6599,403• 3,210,080 2,968,840

Dry Whey Prices

Weighted Price Dollars/PoundsUS 0.3008 0.3145 0.2913 0.3249Sales Volume US 6,118,877 6,448,126 11,711,511 8,379,653

Nonfat Dry Milk

Average Price Dollars/PoundUS 0.7061 0.7277• 0.7311• 0.7417Sales Volume PoundsUS 14,926,588 17,863,253• 17,316,167• 17,289,177

DAIRY PRODUCT SALES

DAIRY FUTURES PRICESSETTLING PRICE *Cash SettledDate Month Class III* Class IV* Dry Whey* NDM* Butter* Cheese*12-22 December 17 15.43 13.60 30.075 72.700 222.750 1.646012-25 December 17 — — — — — —12-26 December 17 15.41 13.60 30.075 72.700 222.250 1.646012-27 December 17 15.42 13.59 30.075 72.600 222.500 1.646012-28 December 17 15.42 13.54 30.075 72.500 222.750 1.646012-22 January 18 14.02 13.21 25.450 70.075 220.750 1.528012-25 January 18 — — — — — —12-26 January 18 13.94 13.21 25.450 70.150 219.975 1.524012-27 January 18 14.00 13.21 25.450 70.500 220.475 1.531012-28 January 18 14.07 13.21 25.850 70.000 221.500 1.538012-22 February 18 13.64 13.19 23.250 70.500 220.250 1.507012-25 February 18 — — — — — —12-26 February 18 13.55 13.19 23.550 70.200 219.350 1.498012-27 February 18 13.61 13.19 23.550 70.550 219.400 1.500012-28 February 18 13.73 13.19 23.875 70.450 219.900 1.5100

12-22 March 18 13.67 13.40 22.675 71.900 222.500 1.510012-25 March 18 — — — — — —12-26 March 18 13.60 13.40 22.700 71.900 221.525 1.505012-27 March 18 13.62 13.45 22.725 72.250 222.025 1.509012-28 March 18 13.69 13.45 23.100 72.275 222.900 1.5110

12-22 April 18 13.9 13.67 23.250 72.750 224.000 1.535012-25 April 18 — — — — — —12-26 April 18 13.90 13.67 23.250 73.625 223.750 1.530012-27 April 18 13.92 13.68 23.250 74.250 224.750 1.531012-28 April 18 14.01 13.69 23.750 73.900 224.750 1.5360

12-22 May 18 14.30 13.93 23.750 75.250 227.750 1.573012-25 May 18 — — — — — —12-26 May 18 14.29 13.93 23.750 75.700 226.200 1.565012-27 May 18 14.30 13.94 23.750 76.375 226.500 1.567012-28 May 18 14.37 13.96 24.250 76.025 226.750 1.5740

12-22 June 18 14.71 14.21 24.000 77.350 228.525 1.609012-25 June 18 — — — — — —12-26 June 18 14.71 14.21 24.000 77.525 227.500 1.607012-27 June 18 14.70 14.21 24.000 78.125 228.000 1.607012-28 June 18 14.73 14.21 24.000 78.250 228.500 1.6120

12-22 July 18 15.19 14.38 24.600 79.175 230.275 1.652012-25 July 18 — — — — — —12-26 July 18 15.19 14.38 24.600 79.275 229.150 1.651012-27 July 18 15.19 14.38 24.600 80.225 229.150 1.652012-28 July 18 15.19 14.40 24.600 80.225 229.500 1.651012-22 August 18 15.36 14.67 24.975 81.100 232.000 1.672012-25 August 18 — — — — — —12-26 August 18 15.36 14.67 24.975 81.125 230.000 1.672012-27 August 18 15.36 14.67 24.975 82.100 230.000 1.679012-28 August 18 15.36 14.67 24.975 82.100 230.500 1.6790

12-22 September 18 15.53 14.90 25.000 82.800 232.500 1.685012-25 September 18 — — — — — —12-26 September 18 15.59 14.90 25.000 82.950 231.100 1.685012-27 September 18 15.59 14.90 25.000 83.850 231.100 1.690012-28 September 18 15.60 14.90 25.000 83.725 231.525 1.690012-22 October 18 15.65 15.10 25.150 85.000 232.925 1.695012-25 October 18 — — — — — —12-26 October 18 15.65 15.10 25.150 85.025 230.550 1.695012-27 October 18 15.65 15.10 25.150 85.075 230.550 1.695012-28 October 18 15.65 15.10 25.150 85.475 230.750 1.6950

Interest - Dec. 28 26,668 1,879 4,024 7,570 5,573 28,459

$1.35

$1.45

$1.55

$1.65

$1.75

$1.85

$1.95

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

40-Pound Block Avg

CME vs AMS

575

600

625

650

675

700

725

750

2011 2012 2013 2014 2015 2016 2017

American-Type Cheese StocksNov 30 of Select Years; million lbs

75

100

125

150

175

2011 2012 2013 2014 2015 2016 2017

Butter StocksNov 30 of Select Years, million lbs

$1.15

$1.40

$1.65

$1.90

$2.15

2001 2005 2010 2015

Year-End Block Cheese PricesSince 2001

CME Block/Barrel Price Tracker - 2016 vs. 2017

$1.25

$1.35

$1.45

$1.55

$1.65

$1.75

$1.85

$1.95

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

2017

2016

CHEESE REPORTERDecember 29, 2017 Page 11

DAIRY PRODUCT MARKETSAS REPORTED BY THE US DEPARTMENT OF AGRICULTURE

WHOLESALE CHEESE MARKETS

WEEKLY COLD STORAGE HOLDINGS

OVERVIEW - DEC. 21: At this time of year in Australia demand for feed is low, as pastures are green and at their prime. Looking forward, concerns are increasing as to avail-ability of quality hay later in 2018. Some producers have begun stocking now as a precau-tion. Recent patchy rains in Northern Australia have ended, leaving good conditions for hay.

CHEDDAR - DEC. 21: Cheddar cheese prices in Oceania weakened. Buyers feel there is a lot of cheese for sale globally. This week’s news about higher milk production in New Zealand compared with last year led many possible buyers to step back to better assess options. This took a toll on prices.

39% MAXIUMUM MOISTURE: 3,325 - 3,525

BUTTER - DEC. 21: Butter prices in Oceania continue the recent pattern of softening. Pressure from weaker EU prices is a factor. At GDT Event 202 on Dec. 19, the butter all contracts price, $4,474, decreased 2.3 percent. The January contract, $4,495, decreased 3.3 percent. This outcome greatly surprised a number of people involved in the New Zealand dairy industry, who believed butter had already adjusted lower and would likely bounce up a bit. Many heads are being scratched as people seek some reconciliation between expecta-tions and outcomes.

82% BUTTERFAT: 4,450 - 4,495

SELECTED STORAGE CENTERS IN 1,000 POUNDS - INCLUDING GOVERNMENT

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

12/25/17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,299 94,31212/01/17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,779 96,364Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -3,480 -2,052

NATIONAL - DEC. 22: Milk volumes are available nationwide, with some cheese produc-ers in the Midwest receiving spot milk at marked discount prices. Spot milk prices into cheese production range from $4 to $8 under Class III. Cheese production is active in all regions, mir-roring abundant milk intakes. Some cheese plant managers in the Midwest report ramping up cheese production to meet abundant milk supplies. In the Northeast, a few processing plants will be running operations through the holiday. Cheese inventories are mixed, and some plant managers relay some shared anxiety related to the currently heavy production levels. Cheese demand is mixed across the nation. Some midwestern cheese producers who expected this holiday sales season to be exceptional have been somewhat disappointed. They relay that fluctuating and recently declining cheese market prices have deterred and/or delayed buying in what is typically the peak sales season.

NORTHEAST- DEC. 27: Coming off the holiday, milk continues to be available for manu-facturing needs. Like last week, there are still some operations closed. Cheese production is steady to strong as a number of cheese plant managers report they have enough milk coming into their intakes. Inventories are steady to increasing. There was a blizzard that hit parts of the Northeast causing slower travel during the holiday. Cheese prices on the spot market have decreased compared to recent weeks as many brokers and end users have sufficient supplies and do not need to purchase any more for Q4 2017.

Wholesale prices, delivered, dollars per/lb:Cheddar 40-lb blocks: $1.9200 - $2.2050 Process 5-lb sliced: $1.5925 - $2.0725Muenster: $1.9050 - $2.2550 Swiss Cuts 10-14 lbs: $3.2650 - $3.5875

MIDWEST AREA - DEC. 27: Milk into midwestern cheese vats remains plentiful. Chee-semakers continue to report spot milk prices ranged from $4 to $8 under Class III, and a majority of those spots are between $4 and $5 under Class. Cheese production schedules vary by plant, but a majority of plant managers plan on either six or seven day workweeks for the near term as milk storage space is tightening. Some suggest the heavy CME sales vol-umes of process cheese were an alleviation of the ample cheese stocks, while others relay that cheese supplies remain plentiful and will continue to grow with heavy milk supplies. Although market prices, particularly barrels, took a large tumble last week, some contacts believe the markets are beginning to comport, as the barrel over block price inversion is in the past, and the price gap is back to what many contacts agree is more comfortable.

Wholesale prices delivered, dollars per/lb: Process 5# Loaf: $1.5475 - $1.9075Brick/Muens 5# Loaf: $1.8275 - $2.2525 Cheddar 40# Block: $1.5550 - $1.9500Monterey Jack 10#: $1.8025 - $2.0075 Blue 5# Loaf: $2.0950 - $3.0825Mozzarella 5-6# (LMPS): $1.6275 - $2.5675 Grade A Swiss 6-9#: $2.7825 - $2.9000

WEST - DEC. 27: Western cheese contacts report cheese inventories are heavy. While cheese demand has been stable, it has not been enough to stay ahead of the abundant milk supplies and vigorous cheese production. A few contacts suggest cheese sales have not met expectations for the year. Furthermore, demand for blocks and barrels has slowed greatly between the winter holidays. Dairy market observers say higher than normal stocks of cheese and other dairy products going into the new year should provide a hortative yelp for slowing the supply of milk moving into cheese vats. Cheese manufacturers know an early launch into the cheese pizza and grilling seasons may be critical to set a positive tone for cheese in 2018.

Wholesale prices delivered, dollars per/lb: Process 5# Loaf: $1.5350 - $1.7925Cheddar 40# Block: $1.5875 - $2.0325 Cheddar 10# Cuts: $1.7675 - $1.9875Monterey Jack 10#: $1.7775 - $1.9375 Grade A Swiss 6-9#: $2.8425 - $3.2725

FOREIGN -TYPE CHEESE - DEC. 27: January-October 2017 EU exports of cheese increased 4 percent compared to January-October 2016. The main importers of cheese were the US, Japan, Switzerland and South Korea. In Germany, sliced cheese demand is stable during the holiday season. Availability of standard cheese has increased due to hesitant pur-chasing behavior.

Selling prices, delivered, dollars per/lb: Imported DomesticBlue: $2.6400 - 5.2300 $1.9725 - 3.4600Gorgonzola: $3.6900 - 5.7400 $2.4800 - 3.1975Parmesan (Italy): 0 $3.3625 - 5.4525Romano (Cows Milk): 0 $3.1625 - 5.3125Sardo Romano (Argentine): $2.8500 - 4.7800 0Reggianito (Argentine): $3.2900 - 4.7800 0Jarlsberg (Brand): $2.9500 - 6.4500 0Swiss Cuts Switzerland: 0 $3.3025- 3.6250Swiss Cuts Finnish: $2.6700- 2.9300 0

NATIONAL - DEC. 22: Cream for but-ter production is abundant as other dairy processing plants are closing for the holiday weekend. Butter production remains active as producers are pushing to fill remaining holiday orders. Some manufacturers have been focusing on more unsalted butter. A few industry contacts report that they have begun to aim some churning time towards the spring holiday preparation. Inventories are plentiful. Bulk butter prices range from 1 cent to 7 cents over the CME average. The market undertone is mixed. However, some Central region contacts report that the butter market has been resilient in the face of adversity.

NORTHEAST - DEC. 27: Some butter makers report seeing a repeat of produc-tion highs similar to previous week’s levels, as cream trades at flat multiples in some markets. Hence, butter makers are content in building inventories at prices that are actu-ally lower than what was budgeted for in 2017. If year-end tendencies hold up, buyers are likely to make purchases more readily, as butter stocks increase, at lower prices. At this time, butter sales are light, with orders made around short term immediate needs. Dynamics within global communities suggest that those markets may not be as welcoming, as some anticipated. However, some suppliers remain upbeat, after having established offshore contracts into Q1 2018.

CENTRAL - DEC. 27: Butter makers report that holiday cream supplies are plen-teous and will remain so until early January. Cream multiples for butter production range from flat market to 1.10 f.o.b. Retail sales reports vary from butter makers across the region. Some butter producers report that retail demand has been meeting expecta-tions, while others suggest 2017 holiday retail figures were below the mark of previ-ous years. Butter plant managers continue to relay that spring preparation is underway. The butter market tone is softening a bit. Contacts are anxious that once 2018 bud-geting and futures contracting is complete, the markets will see further declines.

WEST - DEC. 27: Western butter mak-ers report being flooded with available cream amidst the winter holidays. In some cases, manufacturers can conciliate cream brokers and take in extra loads of cream, but in oth-ers, contract shipments are all the processors can handle. Butter production is active and a few manufacturers report adding extra shifts or running additional churns to burn through the cream volumes. Much of the new make is shifting toward bulk butter production and get-ting stored for later sales. Retailers are start-ing to reorder and fill vacated stock shelves. Inventory reports suggest that butter stocks have been pulled down to seasonal levels. A number of contacts are viewing milk fat as the strongest sector of the dairy industry.

FLUID MILK & CREAM

NONFAT DRY MILK - DECEMBER 28NDM - CENTRAL: Low/medium heat NDM prices moved lower on the range, but held steady on the mostly price series. Low/medium heat NDM spot activity was slow during the short trading week. Low/medium heat NDM drying is active, and contacts do not expect this to slow in the near term, as condensed skim is abun-dant. Low/medium heat NDM inventories remain available. While market prices are at historic lows, contacts question where the bottom is. High heat NDM prices slipped on both ends of the range. High heat NDM producers suggest inventories are available, but interest has not picked up after weeks of limited orders.

NDM - EAST: The regional price of low/medium heat NDM is unchanged in the mostly series in an unsettled and weak market. Spot trading is sluggish, as some end users take a holiday break. Heavy condensed skim supplies encour-age active drying. Sales to Class II plants have slowed. Market participants note a

downside to adding to low/medium heat NDM stocks prior to 2018, preferring a wait-and-see approach. Surplus supplies of condensed skim curb the production of high heat NDM.

NDM - WEST: Free on-board spot prices for western low/medium heat NDM are mixed on the range, but down on the mostly series. During this shortened holi-day week, NDM cash sales activity has been limited as several market participants are on vacations. Therefore, the bulk of sales is driven by contractual require-ments. The current NDM supply is well above the demands from buyers/end users. In this way, the tone of the market is unsteady for many industry participants. Thus, several producers and buyers are looking to January for a better indication of how sales will materialize in 2018. Mean-while, some processors are liquidating aged stocks, from six to 10 months, to Mexico at prices close to the lower end of the pricing range.

WHOLESALE BUTTER MARKETS

NATIONAL - DEC. 22: Milk is available for all processing needs around the country. In the Southeast, milk production is up. In the Midwest, contacts are concerned regard-ing the ample supply of milk. Upper Mid-western contacts are also anxious regarding the impending inclement winter weather and how it will affect hauling/transportation. Bot-tling requests are down as school breaks are commencing. Cheese plants are taking on plentiful milk and at heavy discounts.

EAST - DEC. 28: Milk production in the Northeast is steady to slightly growing. With the holiday season still lingering, some toll-ing is taking place. Some operations are still closed, allowing more available milk for manufacturing needs. In some areas of the region, blizzards have slowed down travel time. Milk production in the Southeast is steady to climbing. With many bottling pipe-lines empty and customers cutting back milk orders, milk is clearing into balancing operations. Coming off the holiday, cream multiples are currently .95-1.10. Market par-ticipants are purchasing cream at a discount, as some manufacturers are not taking their regular loads. Cream is readily available for Class II and IV production. Condensed skim is available and industry contacts report with the amount of plentiful milk, condensed skim production has increased.

CENTRAL - DEC. 28: In some cases, upper midwestern fluid milk suppliers were inundated by milk over the holiday. Milk silos were full, as some extra milk was placed into overflow tankers on Monday. However, con-tacts suggest that by Tuesday storage was under capacity and that large milk volumes had made their way into processing plants throughout the region. Contacts continue to point out that various types of plants are tak-ing more days off, relative to years’ past, in order to manage inventories. That being said, most midwestern cheese producers are in the midst of a busy annual produc-tion push, as discounted milk loads flow into Class III manufacturing as low as $8 under Class. Cream availability is seasonally abun-dant, as Class II processors pushed produc-tion early in December and have slowed in the second half of the month.

WEST - DEC. 28: Contacts are continu-ing to express concerns regarding hauling and logistical problems. Hauling difficulties, particularly during the holidays, are rampant nationwide. Bottling intakes remain lower, although schools reopening in the first week of 2018 are expected to increase ordering. Farm milk yields in Arizona and New Mexico continue upward, and some producers in Ari-zona are sending milk to California in order to manage inventories.

OCEANIA CHEDDAR & BUTTER MARKETS

CHEESE REPORTERPage 12 December 29, 2017

CME CASH PRICES - DECEMBER 25 - 29, 2017Visit www.cheesereporter.com for daily prices

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

MONDAY No No No No December 25 Trading Trading Trading Trading

TUESDAY $1.4200 $1.4875 $2.1700 $0.6500 December 26 (+1) (-½) (-1) (-1½)

WEDNESDAY $1.4400 $1.5075 $2.2025 $0.6600 December 27 (+2) (+2) (+3¼) (+1)

THURSDAY $1.4400 $1.5275 $2.2075 $0.6700 December 28 (NC) (+2) (+½) (+1)

FRIDAY $1.4425 $1.5400 $2.2075 $0.6775December 29 (+¼) (+1¼) (NC) (+¾)

Week’s AVG $1.43563 $1.51563 $2.19688 $0.66438 Change (-0.01887) (+0.05363) (+0.0388) (+0.01038)

Last Week’s $1.4545 $1.4620 $2.1930 $0.6540AVG

2016 AVG $1.6631 $1.5619 $2.2981 $1.0175Same Week

MARKET OPINION - CHEESE REPORTERCheese Comment: Eight cars of blocks were sold Tuesday, all on bids, the last at $1.4925; an uncovered offer of 1 car at $1.4875 then set the price. Two cars of blocks were sold Wednesday, both on offers, the last at $1.5075, which raised the price. Two cars of blocks were sold Thursday, both on offers, the last at $1.5275, which raised the price. On Friday, 1 car of blocks was sold on an offer at $1.5375; an unfilled bid for 1 car at $1.5400 then set the price. The barrel price increased Tuesday on bid-based sales of 3 cars at $1.4200, rose Wednesday on an offer-based sale of 1 car at $1.4400, and increased Friday on an offer-based sale of 1 car at $1.4425 (that was the last of 13 cars of barrels sold Friday).

Butter Comment: The butter price declined Tuesday on an offer-based sale of 1 car at $2.1700, increased Wednesday on a bid-based sale of 1 car at $2.2025, and rose Thursday on an unfilled bid for 1 car at $2.2075.

NDM Comment: The nonfat dry milk price fell Tuesday on an offer-based sale of 1 car at 65.0 cents, rose Wednesday on an offer-based sale of 1 car at 66.0 cents, increased Thursday on offer-based sales of 2 cars at 67.0 cents, and rose Friday on a bid-based sale of 1 car at 67.75 cents.

WHEY MARKETS - DECEMBER 25 - 29, 2017RELEASE DATE - DECEMBER 28, 2017

Animal Feed Whey—Central: Milk Replacer: .1500 (NC) – .2500 (NC)

Buttermilk Powder: Central & East: .7500 (NC) – .8200 (-3) West: .6500 (NC) – .7900 (-5) Mostly: .6700 (-3) – .7500 (NC)

Casein: Rennet: 2.0200 (NC) – 2.3200 (NC) Acid: $3.0000 (NC) - $3.3200 (NC)

Dry Whey—Central (Edible): Nonhygroscopic: .2200 (NC) – .3300 (NC) Mostly: .2400 (-1) – .2900 (NC) Dry Whey–West (Edible): Nonhygroscopic: .2000 (NC) – .3400 (NC) Mostly: .2500 (-1½) – .2900 (NC)

Dry Whey—NE: .2500 (NC) — .3400 (-1¾)

Lactose—Central and West: Edible: .1600 (NC) –.3500 (NC) Mostly: .1800 (NC) –.2600 (NC)

Nonfat Dry Milk —Central & East: Low/Medium Heat: .6500 (NC) – .7500 (-2) Mostly: .6900 (NC) –.7300 (NC) High Heat: .8100(-1¼) – .9200 (-3)

Nonfat Dry Milk —Western: Low/Medium Heat: .5950 (+¼) – .7500 (-3) Mostly: .6700 (-2) –.7300 (-2) High Heat: .8300 (-2) – $.9300 (-2)

California Weighted Average NFDM: Price Total Sales December 22 $0.7248 12,565,997 December 15 $0.7615 13,164,799 Whey Protein Concentrate—Central and West: Edible 34% Protein: .6300 (NC) – .9400 (NC) Mostly: .6500 (NC) – .8250 (NC)

Whole Milk—National: 1.3500 (NC) – 1.4500 (-10) Visit www.cheesereporter.com for dairy and historical cheese, butter, and whey prices

For more information, circle #35 on the Reader Response Card on p. 10

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Solvaira Acquired(Contnued from p. 1)

Fibred two years earlier. That had marked International Fiber’s first transaction since its acquisition by Arsenal Capital, which occurred earlier in 2013.

Niagara Fiber, a supplier of insoluble fiber products for food and other applications and a port-folio company of Arsenal Capital

Partners, acquired Allied Blending in 2014.

Based in Rosenberg, Germany, J. Rettenmaier & Söhne (JRS) processes and markets plant fiber products, including anti-caking agents. The owner-run JRS Group is active with more than 2,500 employees at more than 50 pro-duction and sales locations around the world. J. Rettenmaier USA LP is based in Schoolcraft, MI.

Restaurant Performance Index Rose Slightly In November; Operators Are More OptimisticWashington—The National Res-taurant Association’s Restaurant Performance Index (RPI) stood at 101.1 in November, up slightly from October.

Although the overall RPI increase was modest in Novem-ber some key indicators registered notable improvements. Restaurant operators reported their strongest same-store sales performance since June. And almost one-half of oper-ators expect their sales to be higher in six months, while their outlook for the overall economy improved to its strongest level in three years.

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

The RPI consists of two com-ponents: the Current Situation Index and the Expectations Index. The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capi-tal expenditures), stood at 99.6 in

November, up slightly from Octo-ber.

Restaurant operators reported stronger same-store sales results in November. Some 48 percent of operators reported a same-store sales increase between November 2016 and November 2017 up from 38 percent in October.

However, in November, opera-tors reported a net decline in customer traffic for the eighth con-secutive month.

The Expectations Index, which measures current trends in four industry indicators (same-store sales, employees, capital expen-ditures and business conditions), stood at 102.6 in November, up 0.3 percent from October and its highest level in nine months.

Operators are becoming more optimistic that business condi-tions will improve in the months ahead. Some 46 percent of opera-tors expect to have higher sales in six months (compared to the same period in the previous year), up from 44 percent in October. Only 9 percent of operators expect their sales volume in six months to be lower than it was a year earlier.

Restaurant operators are also increasingly optimstic about the economy’s direction. Some 37 per-cent of operators said they expect economic conditions to improve in six months, while just 6 percent think conditions will worsen.