news/business - Cheese Market News

Transcription

news/business - Cheese Market News
Volume 34
Scan this code
for breaking
news and the
latest markets!
A
June 13, 2014
FDA clarifies stance on cheese
aging regs after industry uproar
By Alyssa Mitchell
INSIDE
✦ Connecticut governor
vetoes bill that would
have banned chocolate
milk in school lunches.
For details, see page 3.
✦ Guest column:
‘Who has it easier,
buyer or seller?’
For details, see page 4.
✦ Retail WATCH Exclusive:
Willapa Hills expands
distribution, adds cheeses.
For details, see page 7.
✦ Dairy export values rise.
For details, see page 16.
Number 21
WASHINGTON — FDA this
week issued a clarification
on its position on the use
of wood shelving in artisan
cheesemaking after cheesemakers, lawmakers and other
dairy industry stakeholders
voiced concerns over a previous policy statement issued
by the agency.
A memo issued in January by Monica Metz, branch
chief of FDA’s Dairy and Egg
Branch for the Center for
Food Safety and Applied
Nutrition, stated: “The use
of wooden shelves, rough or
otherwise, for cheese ripening does not conform to cGMP
(current good manufacturing
Industry sees opportunity in
protein-rich breakfast trends
By Rena Archwamety
MADISON, Wis. — Breakfast recently has drawn more attention
from both fast food and casual restaurants, which see opportunities
to capture the morning market for convenient and satisfying options.
According to the latest edition of “Foodservice Breakfast Trends in
the U.S.,” published last fall by Packaged Facts, restaurant breakfast
sales — which were estimated at around $47 billion in 2013 — are
expected to grow at least 5 percent every year through 2015. During
2007-2012, limited-service restaurant breakfast grew at a rate of 11
percent, more than double the rate of full-service breakfast, due in
part to increased availability and variety, as well as the needs of onthe-go consumers. The study notes that limited-service restaurants
are benefitting from menu item innovation, hitting healthfulness,
indulgence and quality notes among other factors.
Taco Bell launched a massive campaign this spring to introduce its
entry into the breakfast segment with items such as its Waffle Taco
and A.M. Crunchwrap.
“I think Taco Bell is the biggest one in the news, but there are also
other restaurants trying to rev up their breakfast programs,” says
Sara Monnette, senior director of consumer insights and innovations,
Technomic. “A lot is being driven by limited-service players. Taco Bell
is not trying to hide the fact that they are going after McDonald’s.
McDonald’s continues to be the leader in breakfast, the big game in
town, and others want to capture some of that customer.”
In its fall 2013 consumer trend report on breakfast, Technomic
notes that convenience is a strong driver in consumers’ breakfast
decisions. Though 63 percent of consumers agree that it is unhealthy
to skip breakfast, only 26 percent say they always eat this meal. When
asked why they skip breakfast, consumers cite a lack of time to eat
Turn to BREAKFAST, page 15 a
practices) requirements,
which require that ‘all plant
equipment and utensils shall
be so designed and of such
material and workmanship as
to be adequately cleanable,
and shall be properly maintained.’ 21 CFR 110.40(a).”
The agency was responding to an inquiry from New
York’s Division of Milk Control and Dairy Services Director Casey McCue. An FDA
inspection at a New York
farmstead cheese operation
last summer found environmental pathogenic contamination, and FDA demanded
the plant cease using wooden
boards for curing, according
to information obtained by
the Wisconsin Cheese Makers
Association (WCMA).
WCMA says it polled its
members this week and found
that 33 million pounds of
cheese per year is cured on
boards in Wisconsin alone.
Andy Hatch, cheesemaker
at Uplands Cheese, Dodgeville, Wis., said he had
concerns after FDA issued
the memo in January.
“It was kept under wraps
for months, but when this
story broke over the weekend,
I was worried it might ramp
up their enforcement on
this,” he says. “Even though
they were calling it an ‘interpretation of an existing
policy,’ it seems to be more
of change that should have a
comment period to give the
industry and others a chance
to weigh in.”
Uplands Cheese uses
wooden boards in its cheesemaking process. Hatch says
the boards aid in regulating
humidity in the aging room
and in the cheese itself.
“It doesn’t directly impact
the flavor, but allows some of
the microflora on the cheese
to stay present,” he says.
Hatch notes this type of
microorganism is the same
as what it is used to make
wine and beer.
“It’s nothing exotic or
unpredictable,” he says.
Hatch also notes that in
Wisconsin, state regulations
are in place to make sure
wooden boards are properly
sanitized and cleaned.
“It’s not something we’re
doing in secret; it’s already
regulated,” he says.
Guidelines for wood shelving in cheesemaking from
the Wisconsin Department of
Agriculture, Trade and Consumer Protection (DATCP)
say that “wood shelving may
USDA increases forecasts
on ’14 cheese, butter price
WASHINGTON — In its “World Agricultural Supply and Demand
Estimates” report released this month, USDA increased its forecasts for 2014 cheese and butter prices due to strong demand for
cheese and tight supplies of butter.
Meanwhile, USDA’s 2014 and 2015 milk production forecasts are
unchanged from last month. U.S. milk production is forecast to total
206.1 billion pounds in 2014 and rise to 212.1 billion pounds in 2015.
Dairy export forecasts on a fat basis are raised for 2014 and
2015 with higher cheese exports, USDA says. However, growth
in 2014 exports is constrained by weaker butter sales as higher
domestic prices have made U.S. butter less competitive on world
markets. Skim-solids exports reflect strength in cheese and nonfat
dry milk (NDM) exports. Imports for 2014 and 2015 are raised on
higher imports of food ingredients.
Turn to WASDE, page 16 a
be used for the purpose of
curing cheese products when
wood is needed by the processor to obtain desirable characteristics in the finished
product. ATCP 80.12 (2) (a)
allows the department to
authorize the use of alternate
materials for product contact
surfaces. Wood shelving may
be considered for use in the
curing of cheese if the plant
makes a request in writing
to the department and the
request is reviewed by the
Food & Dairy Specialist. Final
authorization must be given
in writing.”
DATCP’s guidelines also
state that types of wood are
restricted to close-grained
solid boards, composite
materials may not be used,
all wood in use must be free
of defects and a strict mite
control program must be in
place and adhered to by the
processor.
“I think the safety of
well-maintained wood aging boards has been welldocumented, and I think
we need to be cognizant of
that,” says Jeff Jirik, former
owner of Faribault Dairy Co.
and now vice president of
the Blue Cheese Division at
Turn to AGING, page 12 a
GMA, IDFA, others
file lawsuit over
Vermont GMO law
WASHINGTON — Yesterday the Grocery Manufacturers Association (GMA),
International Dairy Foods
Association (IDFA), Snack
Food Association and National Association of Manufacturers filed a lawsuit
in federal district court in
Vermont challenging the
state’s mandatory GMO
labeling law.
The law, which was
Turn to GMO, page 16 a
Reprinted with permission from the June 13, 2014, edition of CHEESE MARKET NEWS®© Copyright 2014 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
2
CHEESE MARKET NEWS® — June 13, 2014
MARKET INDICATORS
Chicago Mercantile Exchange
CHEESE FUTURES* for the week ending June 12, 2014
Cash prices for the week ended June 13, 2014
Monday
June 9
Cheese Barrels
Price
Change
Tuesday
June 10
Wednesday
June 11
(Listings for each day by month, settling price and open interest)
Thursday
June 12
Friday
June 13
$1.9725
+1/2
$1.9700
-1/4
$1.9575
-1 1/4
$1.9575
NC
$1.9675
+1
Cheese 40-lb. block
Price
$2.0600
Change
+1
$2.0600
NC
$2.0300
-3
$2.0300
NC
$2.0300
NC
Weekly average (June 9-13): Barrels: $1.9650(+.0155); 40-lb. Blocks: $2.0420(+.0285).
Weekly ave. one year ago (June 10-14, 2013): Barrels: $1.7700; 40-lb. Blocks: $1.7360.
Grade A NDM
Price
Change
$1.8575
NC
$1.8575
NC
$1.8575
NC
$1.8575
NC
$1.8250
-3 1/4
Weekly average (June 9-13): Grade A: $1.8510(-.0050).
Grade AA Butter
Price
Change
$2.1850
NC
Weekly Cold Storage Holdings
Butter
Cheese
22,015
89,286
-384
+1,311
-2
2
Last Year
Pounds
Change
18,079
112,419
+3,936
-23,133
(These data, which include government stocks and are reported in thousands of pounds, are based on reports from
a limited sample of cold storage centers across the country. This chart is designed to help the dairy industry see the
trends in cold storage between the release of the National Agricultural Statistics Service’s monthly cold storage reports.)
JUN14
JUL14
AUG14
SEP14
OCT14
NOV14
DEC14
JAN15
FEB15
MAR15
APR15
MAY15
JUN15
Mon., June 9
67.58
64.75
61.90
58.50
58.98
57.53
56.10
54.95
54.00
52.50
52.00
52.00
52.00
67.45
64.75
62.10
58.75
58.98
57.53
56.10
54.95
54.00
52.50
52.00
52.00
52.00
469
409
354
272
197
182
253
84
31
49
34
31
31
Total Contracts Traded/
Open Interest
7/2,479
17.03
9.31
14.28
17.00
16.06
17.25
23.35
18.00
10.44
12.78
19.40
15.72
16.93
23.33
16.76
10.78
12.92
16.87
15.72
17.59
24.31
18.18
9.84
13.38
16.52
15.23
18.52
22.57
20.25
9.97
13.62
19.11
15.63
18.02
18.24
9.97
13.74
21.39
16.68
17.38
17.32
11.20
15.18
21.67
17.73
17.91
16.28
12.11
16.26
19.07
19.00
18.14
17.06
12.82
16.94
18.03
21.02
18.22
15.51
14.08
15.44
19.07
20.83
18.83
15.28
14.98
13.83
18.77
18.66
18.95
470
409
355
275
197
182
253
84
31
49
34
31
31
12/2,484
SUBSCRIPTION INFORMATION
Susan Quarne, Publisher
(PH 608/831-6002; FAX 608/831-1004)
e-mail: [email protected]
Kate Sander, Editorial Director
(PH 509/962-4026; FAX 509/962-4027)
e-mail: [email protected]
Alyssa Mitchell, Senior Editor
(PH 608/288-9090; FAX 608/288-9093)
e-mail: [email protected]
Rena Archwamety, News/Web Editor
(PH 608/288-9090; FAX 608/288-9093)
e-mail: [email protected]
Emily King, Assistant Editor
(PH 608/288-9090; FAX 608/288-9093)
e-mail: [email protected]
Cheese Market News®, Publication #0598-030, (ISSN 08911509), is published weekly by Quarne Publishing LLC, 4692
Signature Drive, Middleton, WI 53562; Phone 608/831-6002;
FAX 608/831-1004. Periodicals postage paid at Madison, WI.
Circulation records are maintained by Quarne Publishing LLC,
4692 Signature Drive, Middleton, WI 53562. POSTMASTER:
John Umhoefer, FCStone, International Dairy Foods
Association, National Milk Producers Federation, U.S.
Dairy Export Council, Eric Meyer, Rice Dairy
SUBSCRIPTIONS & BUSINESS STAFF
Subscription/advertising rates available upon request
Contact: Susan Quarne - Publisher
P.O. Box 628254, Middleton, WI 53562
0(/.%s&!8
1,829
1,550
1,454
1,288
1,288
1,337
1,397
264
230
218
182
164
200
89
79
71
2.028
1.988
1.995
2.010
1.975
1.932
1.897
1.840
1.837
1.840
1.840
1.840
1.840
1.836
1.830
1.830
59/11,674
Wed., June 11
1,806
1,563
1,458
1,312
1,296
1,343
1,415
267
236
221
185
167
203
89
79
71
2.040
2.029
2.026
2.030
1.990
1.937
1.902
1.840
1.837
1.840
1.840
1.840
1.840
1.836
1.830
1.830
Thurs., June 12
1,807
1,637
1,468
1,332
1,325
1,374
1,427
277
236
228
185
195
207
89
79
71
2.036
2.018
2.016
2.026
1.991
1.945
1.899
1.850
1.837
1.847
1.841
1.850
1.848
1.836
1.830
1.830
325/11,971
187/11,745
Send address changes to Cheese Market News®, Subscriber
Services, P. O. Box 628254, Middleton, WI 53562; Form
3579 requested; or call direct at 608/831-6002. All rights
reserved under the United States International and PanAmerican Copyright Conventions. No part of this publication
may be reproduced, stored in a retrieval system or transmitted
in any form or by any means, mechanical, photocopying,
electronic recording or otherwise, without the prior written
permission of Quarne Publishing LLC. Opinions expressed
in articles are those of the authors and do not necessarily
UHÁHFWWKRVHRI4XDUQH3XEOLVKLQJ//&GED&KHHVH0DUNHW
News®. Cheese Market News® does not endorse the products
of any advertiser and does not assume and hereby disclaims
any liability to any person for any loss or damage caused by
errors or omissions in the material contained herein, regardless of whether such errors result from negligence, accident
or any other cause whatsoever. Copyright 2014 by Quarne
Publishing LLC.
Subscriptions: $135 for U.S., second-class delivery; $190
IRU86ÀUVWFODVVGHOLYHU\LQFOXGLQJ&DQDGDDQG,QWHUnational rate to all others. Printed in U.S.A.
WEBSITE: www.cheesemarketnews.com
Tues., June 10
67.45
64.75
62.13
58.78
58.98
57.53
56.10
54.95
54.00
52.50
52.00
52.00
52.00
470
410
356
276
197
182
253
84
31
49
34
31
31
Wed., June 11
67.33
65.00
62.13
59.50
58.98
57.53
55.00
54.93
53.50
52.50
51.00
52.00
52.00
4/2,487
470
407
356
279
197
182
253
84
31
49
57
31
31
Thurs., June 12
66.50
64.13
61.50
58.25
57.50
56.75
55.25
54.90
52.50
52.50
51.75
52.00
52.00
39/2,510
Dry Products*
471
408
357
285
193
182
253
84
33
49
81
31
31
80/2,541
June 13, 2014
NONFAT DRY MILK
Central & East:
low/medium heat $1.7500-$1.9775(+7 3/4);
mostly $1.7700-$1.8675(+3).
high heat $1.9050(+1/2)-$1.9400(-1).
West:
low/medium heat $1.7700(-1)-$1.9400(+4);
mostly $1.8200-$1.8500(-1).
high heat $1.9000(+2 3/4)-$1.9900(+1).
Calif. manufacturing plants: extra grade/grade A weighted ave. $1.8454(+.0603)
based on 10,162,093 lbs. Sales to CCC: 0 lbs.
WHOLE MILK POWDER (National):
STAFF
REGULAR CONTRIBUTORS
Tues., June 10
Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.
*Total Contracts Traded/Open Interest reflect additional months not included in this chart.
(Dollars per hundredweight, 3.5% butterfat test)
YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
19.32
10.78
14.50
13.48
17.05
18.14
21.15
92/11,634
Fri., June 6
CLASS III PRICE
2008
2009
2010
2011
2012
2013
2014
1,829
1,541
1,455
1,280
1,288
1,337
1,373
264
230
218
182
164
200
89
79
71
2.028
1.970
1.982
2.007
1.975
1.932
1.894
1.840
1.837
1.840
1.840
1.840
1.840
1.836
1.830
1.830
(Listings for each day by month, settling price and open interest)
June 9, 2014
Change since June 1
Pounds
Percent
-350
+1,366
Total Contracts Traded/
Open Interest 133/11,621
Mon., June 9
DRY WHEY FUTURES* for the week ended June 12, 2014
Sign up for our daily fax or e-mail service for just $104 a year. Call us at 608-288-9090.
Week
Change
1,829
1,531
1,476
1,272
1,282
1,332
1,368
264
230
218
182
164
200
89
79
71
$2.1850
NC
Weekly average (June 9-13): Grade AA: $2.1950(-.0575).
Class II Cream (Major Northeast Cities): $2.9057(-.0191)–$3.1085(+.0009).
On hand
Monday
2.026
1.965
1.987
2.000
1.977
1.932
1.894
1.840
1.837
1.840
1.840
1.840
1.840
1.836
1.830
1.830
Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.
*Total Contracts Traded/Open Interest reflect additional months not included in this chart.
$2.1850
-2 1/2
$2.2100
NC
$2.2100
-1 1/4
Fri., June 6
JUN14
JUL14
AUG14
SEP14
OCT14
NOV14
DEC14
JAN15
FEB15
MAR15
APR15
MAY15
JUN15
JUL15
AUG15
SEP15
$2.0200(+12)-$2.1250(+7 1/2).
EDIBLE LACTOSE
(FOB)Central and West: $.4300(+6)-$.6825(-1/4); mostly $.5350-$.6000(-2 3/4).
DRY WHEY
Central:
West:
(FOB) Northeast:
nonhygroscopic $.5900(-1)-$.7250(-1 1/2);
mostly $.6375(-1/2)-$.6850(-1/4).
nonhygroscopic $.5900(-1/2)-$.7200(-1 1/4);
mostly $.6200-$.6900(-1).
extra grade/grade A $.6975-$.7575.
ANIMAL FEED (Central): Whey spray milk replacer $.5200-$.6475.
WHEY PROTEIN CONCENTRATE (34 percent): $1.5000-$1.8425(-4 1/4);
mostly $1.5675(-3 1/4)-$1.7425(-4 1/2).
DRY BUTTERMILK
(FOB)Central & East: $1.7500-$1.8600(-3).
(FOB) West:
$1.7300-$1.9200(-3); mostly $1.7800-$1.8600(-4).
CASEIN:
Rennet $4.7500-$5.2000; Acid $4.9000-$5.4000.
*Source: USDA’s Dairy Market News
DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions.
Reprinted with permission from the June 13, 2014, edition of CHEESE MARKET NEWS®© Copyright 2014 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
June 13, 2014 — CHEESE MARKET NEWS®
NEWS/BUSINESS
3
MARKET INDICATORS
Connecticut Gov. Malloy vetoes bill that
would ban use of chocolate milk in schools
HARTFORD, Conn. — Connecticut
Gov. Daniel Malloy on Thursday vetoed
a bill that would have banned chocolate
milk and some juices in public schools.
State legislators last month approved the measure, which called for
only lowfat unflavored milk along with
beverages that contained no artificial
sweeteners, added sodium or excessive
sugar to be available to students. The
new regulations would have gone into
effect July 1.
However, in a letter Thursday to
Denise Merrill, Secretary of State, Gov.
Malloy says that while House Bill 5566,
An Act Concerning Minor Revisions to
the Education Statues, includes items
he supports, he cannot support Section
8 which potentially prohibits the sale
of nonfat chocolate milk in Connecticut
public schools.
“The section at issue is well-intentioned and with some minor changes
I would be fully supportive,” he says.
“However, as written, the section prohibits the sale of nonfat milk containing any
‘added sodium.’ Unfortunately, all milk
producers that sell milk to our public
schools add some sodium to their nonfat
chocolate milk product to counteract
the bitterness caused by adding cocoa
to the milk.”
Malloy says that, ideally, students will
choose to drink unflavored nonfat milk
as chocolate milk “contains unnecessary
calories, sugar, as well as sodium.”
“Research shows, however, that when
chocolate milk is removed as an option,
total milk consumption goes down
and milk waste increases, presumably
because students who do not like the
taste of unflavored milk throw it away,”
he says.
“I am not opposed to individual
school districts having the choice to
eliminate the sale of chocolate milk in
their schools,” he adds. “However, I do
not think it is a wise policy to mandate
statewide. For these reasons, I disapprove of” this bill.
The National Milk Producers Federation (NMPF)praised the veto of the
legislation.
“It’s encouraging to see reason and
common sense returning to the debate
over chocolate milk in schools,” says Jim
Mulhern, president and CEO, NMPF. “As
a recent university study made clear,
schools that remove chocolate milk from
the cafeteria are simply throwing the
nutritional baby out with the bathwater.
They deprive kids of calcium, protein
and other needed nutrients while they
increase waste and boost costs. Certainly,
obesity is a serious problem among today’s youth. But the answer isn’t to ban
chocolate milk.
“Connecticut is not required to pass
this legislation to keep its federal school
meals funding,” Mulhern adds. “Federal
nutrition standards specifically allow
schools to serve fat-free chocolate milk
as part of reimbursable meals and in
cafeteria a la carte lines. Gov. Malloy
is to be congratulated for thinking this
through, and not opting for the quick,
easy but wrong solution.”
Cary Frye, vice president of regulatory
and scientific affairs for the International Dairy Foods Association (IDFA)
also praised the veto decision.
“We applaud Gov. Malloy’s decision
to veto HB 5566, a bill which would have
effectively banned chocolate milk from
Connecticut schools,” Frye says. “The
bill went above and beyond federal
nutrition standards and would have
limited our members’ ability to supply
flavored milk to schools. Milk provides
nine essential nutrients, including
three of the four nutrients identified
as ‘nutrients of concern’ in the 2010
Dietary Guidelines for Americans. It
would be a shame for these students
to miss out on the No. 1 source of
these three nutrients. IDFA urges the
General Assembly to set standards for
milk and flavored milk consistent with
the federal nutrition standards for
competitive foods sold in schools.” CMN
National Dairy Products Sales Report
For the week ended:
Cheese 40-lb. Blocks:
Average price1
Sales volume2
Cheese 500-lb. Barrels:
Average price1
Adj. price to 38% moisture
Sales volume2
Moisture content
Butter:
Average price1
Sales volume2
Nonfat Dry Milk:
Average price1
Sales volume2
Dry Whey:
Average price1
Sales volume2
*
6/7/14
5/31/14
5/24/14
5/17/14
$2.0233
$2.0516
12,605,756 *12,918,497
$2.1128
13,015,421
$2.1603
13,196,519
$2.1978
$2.0959
8,604,343
34.99
$2.2730
$2.1651
10,115,480
34.91
$2.1115
$2.0207
11,091,968
35.21
$2.1477
$2.0563
9,999,196
35.24
$2.1293
4,822,912
$2.1189
5,440,889
$2.0554
3,789,819
$1.8901
$1.8435
22,318,229 *21,704,411
$1.8143
36,281,686
$1.8554
29,360,118
*$0.6735
*8,031,366
*$0.6807
*8,570,521
*$0.6722
*8,780,090
$2.1850
3,610,772
$0.6769
8,393,226
/Revised. 1/Prices weighted by volumes reported. 2/Sales as reported by participating manufacturers.
Reported in pounds. More information is available by calling AMS at 202-720-4392.
For more information please visit www.devilletechnologies.com
CME FUTURES for the week ended June 12, 2014
Class III Milk*
JUN14
JUL14
AUG14
SEP14
OCT14
NOV14
DEC14
JAN15
FEB15
MAR15
APR15
MAY15
JUN15
JUL15
AUG15
Fri., June 6
Mon., June 9
21.24
20.38
20.33
20.32
20.05
19.53
19.05
18.49
18.26
18.27
18.28
18.24
18.23
18.18
18.13
21.27
20.54
20.44
20.41
20.03
19.53
19.03
18.50
18.34
18.32
18.25
18.24
18.23
18.18
18.13
4,757
3,887
3,233
2,700
2,273
2,069
1,955
864
690
628
343
360
286
119
110
Total Contracts Traded/
Open Interest 549/24,673
4,719
3,928
3,209
2,694
2,293
2,081
1,966
873
708
631
345
362
287
119
110
439/24,724
Tues., June 10
21.28
20.71
20.49
20.45
20.05
19.53
19.02
18.50
18.30
18.30
18.25
18.26
18.24
18.20
18.13
Wed., June 11
4,693
3,972
3,252
2,717
2,313
2,106
1,991
879
720
642
349
368
293
120
110
21.31
21.08
20.79
20.63
20.18
19.63
19.14
18.49
18.30
18.25
18.25
18.26
18.24
18.20
18.13
875/24,924
4,626
3,975
3,237
2,691
2,333
2,121
2,002
897
726
662
350
366
296
120
111
1,062/24,912
Thurs., June 12
21.29
20.88
20.65
20.56
20.15
19.64
19.16
18.53
18.32
18.26
18.28
18.28
18.25
18.15
18.10
4,608
4,059
3,287
2,751
2,380
2,134
2,019
900
746
670
355
372
302
122
113
790/25,217
Class IV Milk*
Fri., June 6
JUN14
JUL14
AUG14
SEP14
OCT14
NOV14
DEC14
JAN15
FEB15
MAR15
APR15
22.70
22.18
21.58
21.58
20.94
20.61
20.21
19.50
19.05
18.85
18.35
1,572
1,245
1,175
1,037
899
851
799
196
126
112
78
Total Contracts Traded/
Open Interest 94/8,108
Mon., June 9
1,572
1,244
1,175
1,037
899
855
799
196
126
112
78
22.70
22.14
21.53
21.55
20.80
20.55
20.19
19.50
19.05
18.85
18.35
11/8,111
Tues., June 10
Wed., June 11
1,572
1,245
1,172
1,038
901
859
805
196
126
112
78
22.70
22.13
21.45
21.32
20.79
20.54
20.16
19.50
19.05
18.85
18.35
1,573
1,251
1,167
1,042
906
866
807
196
126
112
78
22.75
22.20
21.64
21.36
20.70
20.45
20.05
19.50
19.05
18.80
18.35
45/8,122
55/8,142
Thurs., June 12
22.64
22.22
21.64
21.30
20.55
20.40
19.91
19.50
19.05
18.80
18.35
1,573
1,251
1,175
1,050
914
866
807
196
126
112
78
31/8,166
Cash-Settled NDM*
Fri., June 6
JUN14
JUL14
AUG14
SEP14
OCT14
NOV14
DEC14
JAN15
FEB15
183.50
180.25
178.98
177.13
175.25
174.10
170.93
166.85
161.50
654
556
429
424
353
353
333
74
41
Mon., June 9
183.50
180.73
178.53
177.70
174.50
173.50
170.50
166.85
161.50
Total Contracts Traded/
Open Interest
67/3,262
654
559
429
425
351
352
333
74
41
Tues., June 10
183.00
179.75
177.78
176.43
173.00
173.00
170.75
166.85
161.50
654
560
428
426
351
353
337
75
41
Wed., June 11
183.00
180.28
178.10
176.43
171.43
171.75
169.00
165.80
161.25
126/3,296
39/3,270
35/3,263
662
557
430
428
348
361
334
83
48
Thurs., June 12
182.75
180.00
177.83
175.50
170.00
170.00
167.00
164.75
160.75
665
549
430
427
343
358
336
83
48
65/3,284
Cash-Settled Butter*
Fri., June 6
JUN14
JUL14
AUG14
SEP14
OCT14
NOV14
DEC14
JAN15
FEB15
MAR15
215.00
206.75
197.00
195.25
188.00
185.75
181.00
177.00
175.58
175.73
1,147
967
894
803
626
604
395
35
60
22
Total Contracts Traded/
Open Interest
85/5,603
Mon., June 9
215.00
206.75
196.50
195.00
188.00
185.50
181.00
177.00
175.58
175.73
1,147
967
888
808
627
604
395
35
60
22
34/5,603
Tues., June 10
214.98
206.75
196.75
195.00
188.00
185.50
181.00
177.00
175.58
175.73
1,147
967
886
808
631
607
407
35
60
22
16
31/5,620
Wed., June 11
217.00
206.78
197.50
196.00
188.03
186.00
181.50
177.00
175.58
175.73
Thurs., June 12
1,152
969
892
817
631
613
409
35
60
22
216.75 1,146
207.50 965
198.25 893
197.00 817
190.00 638
186.65 624
182.10 414
35
177.00
60
175.58
22
175.73
77/5,650
93/5,664
Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.
*Total Contracts Traded/Open Interest reflect additional months not included in this chart.
DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions.
Reprinted with permission from the June 13, 2014, edition of CHEESE MARKET NEWS®© Copyright 2014 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
4
CHEESE MARKET NEWS® — June 13, 2014
EXPORT TOOL KIT
Perspective:
Export Expertise
Brad Gehrke is director of global
trade analysis for the U.S. Dairy
Export Council. He contributes
this column exclusively for Cheese
Market News®.
China outlook remains strong
In April, the International Monetary Fund reduced its 2015 economic
growth forecast for China to 7.3 percent. Should that come to pass, it would
be China’s lowest annual growth rate
since 1990 — a 25-year period when the
country’s economy gained an average
of 10 percent annually.
That forecast, coupled with heavy
investment in domestic Chinese milk
production and signs that Chinese
dairy import growth has slowed over
the past couple months, has some
dairy suppliers wondering if they need
to worry about China’s dairy buying
future. The quick answer is no.
China’s dairy appetite continues
to be robust. A drop in economic
growth rate does not equate to sliding
consumer incomes nor a change in
long-term projections for middle class
expansion, urbanization or overall
population gains — the major drivers
of the nation’s growing dairy appetite.
And major investments in domestic
dairy farms do not mean China will
become capable of satisfying that
growing appetite.
CMN Exclusive!
To start, the growth rate of gross
domestic product (GDP) can be a
misleading benchmark with which to
estimate China’s dairy consumption
and import trends. The nation’s GDP
growth rate is slowing, but because
the base has increased, the absolute
increase per capita or per household
is still greater than when China’s
economy was soaring.
In other words, a 10 percent increase on China’s per capita income
five years ago (about $3,404 in current
dollars) meant an additional $340
in a consumer’s pocket. A 7 percent
increase on 2013 per capita GDP
(about $6,747) means an extra $470
in a consumer’s pocket.
China’s economy is not trouble free.
Continuing its shift from a primarily export-oriented economy to one
based more on internal consumption
requires difficult tax, fiscal, business
and banking reforms. Still, Chinese
consumers as a whole are doing well
despite what the numbers might imply. And the International Monetary
Fund projects quicker absolute per
capita income growth through 2018
than during the heyday of double-digit
economic expansion.
In addition, China’s population is
poised to increase more quickly than
originally expected. At its current
growth rate, China is on track to add
16 million newborns in 2014.
But last year, China relaxed its onechild policy, allowing certain families
to have a second child. The change
may not result in the immediate boom
in population and consumption that
some analysts project, but it could,
conservatively, add another 700,000
mouths to feed per year, and by other
estimates 2 million mouths.
Dairy consumption growth is
expected to remain strong. The International Farm Comparison Network
projected Chinese dairy demand would
increase from 43 million metric tons
liquid milk equivalent to 61 million
metric tons, a 42 percent increase, by
2024. That’s an increased appetite for
about 40 billion pounds of milk, equivalent to nearly all the milk produced in
New Zealand each year.
Domestic supply growth will meet a
portion of that need but not nearly all.
While analysts vary as to the precise
volume of imports needed to meet demand, they agree it will be sizable — a
minimum of 8-10 million metric tons
(18-22 billion pounds) milk equivalent
above current import levels.
Imports will remain key to feeding
the additional mouths, despite hundreds of millions being spent to build
bigger, more efficient dairy farms.
Keep in mind two factors when
contemplating Chinese dairy farm
investment:
Turn to GEHRKE, page 6 a
woodwork. When an owner decides to
put his company up for sale, he stands
a good chance of being in the driver’s
seat. He’ll likely have numerous offers,
thus putting him in a position of control.
Owners of companies are bombarded
on an almost daily basis from all sorts of
buyers. Buyers are often oblivious as to
the fact that they are a little more than
a commodity to the owner of a company
with $10 million or more in revenue.
Buyers are a dime a dozen.
An added difficulty in buying a
company is that sellers fall into two
camps; those who know they want to
sell and those who don’t want to sell.
Deals offered by those who know they
want to sell are difficult deals for buyers
because a wise seller has gone through
the M&A process and has generated
interest from multiple parties, thus
creating a competitive environment.
Those who have no interest are difficult deals because they aren’t looking
to do a deal! If the company has critical
mass, sizable revenues and profits, the
owner is tired of receiving a constant
barrage of phone calls, emails and letters from buyers who all say the same
thing: “We have the money, we’re different, and we want to buy your company.”
Almost everyone says that.
Another obstacle for buyers looking
for acquisitions is that the targets are
likely competitors. Understandably,
the owners of these companies are ex-
tremely reluctant to talk to a competitor,
let alone give up sensitive information
such as revenues and profits, etc.
During a typical M&A process, the
power shifts from buyer to seller and
back depending on which party has
more riding on a particular stage of
the deal. The swing in motivation, plus
a little poker-esque mind reading means
the power balance is constantly shifting.
Typically, the seller has a lot of power
early in the process. As the courted
party, the seller controls whether meetings occur and whether information is
exchanged.
One way buyers can get more power
early is by submitting a pre-emptive
bid, making a bid before other buyers
have made their bids and knocking out
all other possible suitors. Eliminating
other buyers is to the buyer’s advantage
and puts the seller in a more vulnerable
position.
Even without a pre-emptive bid, the
power balance swings toward the buyer
when the parties sign a Letter of Intent
(LOI) with an exclusivity clause. At this
point the seller can no longer speak with
other buyers.
If the seller accepts a pre-emptive
bid from the buyer, the seller should
insist on removing the exclusivity clause
from the LOI. Otherwise, the seller
should include language in the LOI that
ends the exclusivity period and allows
Turn to WOLTER, page 6 a
GUEST COLUMNISTS
Perspective:
Industry Issues
Bob Wolter is a mergers and
acquisitions advisor for CBS-Global,
Green Bay, Wis. He is a guest
columnist for Cheese Market News®.
Who has it easier, buyer or seller?
Anyone who has worked a sales job
has probably dreamed about being on
the other side: the buyer, the person
who seemingly has all the power. Buyers, after all, are the ones who pick and
choose. They get to interview numerous
vendors and pick the ones that deliver
the best combination of price, quality
and, often, the intangibles of a interpersonal connection.
But in mergers and acquisitions, the
scenario gets flipped on its head. Buying companies is actually more difficult
than selling companies because the
merger and acquisition (M&A) buyer
plays the role of vendor; the buyer has
to market its deal to the seller the way
a traditional salesperson would sell
their product.
M&A is a strange industry because
it’s one of the few that I can think of
where the selling functions are in many
ways easier than buying functions.
Simply put, quality companies with
critical mass are in demand. After a
company gets above a certain revenue
level and especially above a certain
profit level, buyers show up out of the
Reprinted with permission from the June 13, 2014, edition of CHEESE MARKET NEWS®© Copyright 2014 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
June 13, 2014 — CHEESE MARKET NEWS®
5
NEWS/BUSINESS
EPA extends comment period on Clean Water Act proposal after industry raises concerns
WASHINGTON — The U.S. Environmental Protection Agency (EPA) this
week announced it would extend the
comment period on a proposal under
the Clean Water Act after industry
stakeholders voiced concerns over the
complexity of the issue.
The National Milk Producers Federation (NMPF) recently urged the
EPA to allow more time to examine the
regulation.
“It is imperative that the EPA go
about this effort in the right way, in
light of the potential impact of this
Nestlé Corp. taps University of Wisconsin
for Chinese dairy training center curriculum
MARSHFIELD, Wis. — The University of Wisconsin-Madison has been
selected to develop the curriculum
for a new $400 million dairy training
center being established by the Nestlé
Corp. in China’s northeast province
of Heilongjiang.
Nestlé executives were on campus this week to sign a three-year,
$1.7 million agreement under which
UW-Madison personnel will design
and help deliver a series of courses
covering key aspects of dairy farm
management including milk quality,
milking management, reproductive
management, feeding and feed
delivery, animal health, biosecurity
and overall farm management skills.
“The curriculum will range from
practical training for farm workers to managerial level training for
farm managers to courses for expert
consultants who will be advising
those managers,” says UW-Madison
dairy science professor Pamela
Ruegg, who is leading the project
with dairy science professor David
Combs and Karen Nielsen, director
of the university’s Babcock Institute
for International Dairy Research and
Development.
The new Dairy Farming Institute
(DFI) is the key element of Nestlé’s
effort to establish a larger, more
reliable source of high quality milk
to supply its processing facilities in
China. The DFI will include a training center and three demonstration
farms to teach farmers and dairy industry professionals the skills needed
to manage larger, more sophisticated
dairy operations.
The UW-Madison team’s primary
role is to plan the format, content
and delivery of the training. Most of
the actual teaching will be done by
trainers employed by the DFI or by
expert consultants supplied by dairy
industry firms, including several from
Wisconsin, that are collaborating on
the project.
“We will train in country when
appropriate at the highest level,”
Ruegg says. “We’ll be training the
trainers and the professionals, such
as veterinarians. We’re responsible
for development of core competencies, learning objectives, curriculum,
quality control and evaluation.”
The effort will involve many UWMadison dairy scientists as well as
specialists with dairy-related expertise in the School of Veterinary
Medicine and other disciplines such
as biological systems engineering and
agricultural economics, as well as experts in curriculum and instruction.
UW-Madison was chosen from a
wide field that included top agricultural schools in several countries,
Ruegg says. She says she believes
UW-Madison was selected because
of its reputation as a world leader in
dairy science overall and particularly
in the area of milk quality and food
safety, which have been major issues
for milk processors in China. Another
key factor was UW-Madison’s long
experience doing dairy training in
China and its extensive network of
connections within the Chinese dairy
industry.
“What’s made the U.S. dairy industry so productive is our ability to apply
scientific expertise to solve real problems,” Ruegg says. “As we look at the
global expansion of the dairy industry,
this project is bringing university expertise to solve global problems like
food security and food safety.” CMN
FDA releases CPG on food facility registration
WASHINGTON — FDA recently announced in the Federal Register the
availability of a Compliance Policy
Guide (CPG) on food facility registration for both human and animal food.
The CPG provides guidance for FDA
staff on enforcement of food facility
registration requirements, including the
requirement that certain food facilities
register with FDA, the requirement that
registered facilities biennially renew their
registrations with FDA and FDA’s authority to suspend a food facility’s registration,
the agency notes. The CPG also contains
information that may be useful for the
regulated industry and to the public.
FDA is accepting written or electronic comments at any time on the
CPG at www.regulations.gov or mail to
Division of Dockets Management, FDA,
5630 Fishers Lane, Room 1061, Rockville, MD 20852. Comments may be seen
in the Division of Dockets Management
between 9 a.m. to 4 p.m. Monday through
Friday and will be posted to the docket
at www.regulations.gov.
For more information, contact
Mischelle B. Ledet with FDA’s Center for Food Safety and Applied
Nutrition, at 240-205-1165. CMN
measure on dairy farmers,” Jim Mulhern, president and CEO, NMPF, wrote
in a recent letter to EPA Administrator
Gina McCarthy and Jo-Ellen Darcy, Assistant Secretary of the Army. “It would
be a disservice to farmers to rush this
proposal through the review process
without sufficient scientific support or
time to better understand the complexities of the issue.”
NMPF requested that the public
comment period on the draft regulation
be extended at least 90 days.
Unveiled in March, the draft regulation expands the waterways covered
under the 1972 Clean Water Act to nearly
all those connected to U.S. navigable
waters. Opponents, many of whom have
urged EPA to withdraw the regulation,
argue it would have a devastating impact, particularly on agriculture.
NMPF cited two reasons for requesting more time to consider the regulation: First, EPA and the Army Corps
of Engineers have not completed the
report providing the scientific underpinning for the regulation; and second,
many of the key concepts discussed in
the draft are unclear or subject to interpretation by government regulators,
the organization says.
“In order for dairy farmers to understand, assess and adequately comment
on the proposed changes, the science
behind the proposal must be clear
and conclusive,” NMPF says, noting
the proposal relies on the scientific
conclusions of a draft EPA report still
under review by the agency’s Science
Advisory Board.
Where the matter of key concepts
is concerned, the proposal uses terms
such as “neighboring,’’ ‘‘riparian area,’’
‘‘floodplain,’’ ‘‘tributary’’ and ‘‘significant nexus,” NMPF notes.
“These terms are as clear as muddy
water, and therefore will create confusion for dairy producers,” Mulhern says.
NMPF this week said it was pleased
on the extension of the comment period.
“Dairy farmers are committed to
protecting U.S. waters both voluntarily
and under the Clean Water Act, but the
EPA needs to go about this effort in the
right way,” Mulhern says. “Allowing
more time to consider EPA’s draft will
give everyone the chance to adequately
consider the issues raised in the draft
and make it less likely the final regulation will be harmful to dairy farmers.”
EPA has extended the comment deadline to Oct. 20. CMN
BRINE
SYSTEMS
Static, Dynamic, Gantry Crane,
and Intelligent Brining Systems
Offering the most efficient cooling and
uniform salt uptake methods available,
our brine systems meet the challenge
of efficient brining with pre-fabricated
technology and cost-saving features.
FOR MORE INFORMATION, VISIT US ON THE WEB AT
www.johnsonindint.com
For more information please visit www.johnsonindint.com
Reprinted with permission from the June 13, 2014, edition of CHEESE MARKET NEWS®© Copyright 2014 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
6
CHEESE MARKET NEWS® — June 13, 2014
NEWS/BUSINESS
House passes transportation bill, keeps intact truck weight provisions important to industry
WASHINGTON — The U.S. House this
week passed the 2015 Transportation,
Housing and Urban Development (HUD)
Appropriations Act (H.R. 4745). The bill
funds the departments of transportation,
housing and urban development, and other
related agencies, and provisions in the bill
regarding truck weights are of particular
interest to the International Dairy Foods
Association (IDFA), the group notes.
Section 125 of the bill allows three
states — Idaho, Wisconsin and Mississippi
— to pursue limited, targeted truck weight
provisions because they already allow heavy
vehicles on interstate highways. The section
effectively grandfathers the laws in these
states, allowing heavy trucks to remain on
interstates, rather than having to navigate
intersections, pedestrians, railroad tracks
and school zones on local or county roads.
IDFA joined other manufacturing,
distribution, agriculture, construction and
forestry industries in signing a letter to House
Speaker John Boehner, R-Ohio, and Minority Leader Nancy Pelosi, D-Calif., urging
Congress to support Section 125 in the bill.
“If our manufacturing, distribution,
agriculture, construction and forestry
industries are to prosper in today’s global
economy, it is essential that we be allowed
to compete on a level playing field,” the
letter says. “Section 125 allows specific
FDA seeks comments on list of U.S. dairy
processors with interest in exporting to China
WASHINGTON — FDA in the May 23
Federal Register issued a call for comments on establishing and maintaining a
list of U.S. dairy manufacturers/processors with interest in exporting to China.
FDA in January announced it was
establishing the list and now is asking
for feedback on how the list application
process burdens U.S. companies.
FDA began accepting applications for
inclusion on the China list in January and
plans to update the list in December of
each even-numbered year. Listed companies will receive a letter asking them
to verify or update their information and
indicate whether they want to continue to
be listed. FDA has had a similar policy in
place since 2005 for U.S. companies that
export milk and milk products to Chile.
Comments are due June 23. For
more information, contact FDA
at [email protected]. CMN
states to pursue limited, targeted provisions designed to allow trucks that are
already in use in those states to remain on
interstates, rather than having to navigate
intersections, pedestrians, railroad tracks
and school zones on local or county roads.
“We believe the aforementioned provisions will improve transportation safety
while enhancing economic competitiveness,” the letter adds.
IDFA also is a member of the Coalition
for Transportation Productivity (CTP) that
supports increasing the federal gross vehicle
weight limit on commercial trucks if they
are properly equipped with an additional
axle and meet the same safety standards
as trucks currently allowed on interstates.
H.R. 4745 passed by near party
lines, 229-192, and will be sent to
conference with the Senate. CMN
GUEST COLUMNISTS
GEHRKE
Continued from page 4
1) China is still transitioning away
from small-scale farms, and their retirement will continue to take the edge off
the growth of large-scale operations. It
will be years before these large farms
are up and running at full capacity and
efficiency and become the country’s
dominant milk producers — and even
then, China is not likely to ever become
self-sufficient.
2) The costs of producing milk in
China are high. Arable land accounts
for less than 14 percent of China’s
total area and according to a report
released earlier this year, nearly onefifth of that land was too polluted to
farm. The country has grown reliant on
costly imported feed. Environmental
factors and resource limitations will
constrain China’s overall milk output
growth, ensuring that China likely does
not become a low-cost producer and
keeping imports price competitive.
The concern over China’s future
is understandable. As the world’s
biggest single dairy buyer accounting for around 16 percent of import
volume last year, China’s market
clout is unmatched. No doubt there
will be ups and downs in its buying
patterns. But while purchasing may
vary month to month and even quarter to quarter, the long-term outlook
remains very positive indeed. CMN
Note: The U.S. Dairy Export Council
is primarily supported by Dairy Management Inc. (DMI) through the producer
checkoff that builds on collaborative
industry partnerships with processors,
trading companies and others to build
global demand for U.S. dairy products.
The views expressed by CMN’s guest
columnists are their own opinions
and do not necessarily reflect those
of Cheese Market News®.
WOLTER
Continued from page 4
For more information please visit www.cheesemarketnews.com
the seller to speak with other buyers in
the event the buyer attempts to change
the terms of the deal.
From the signing of the LOI through
closing, buyers most often call the shots.
However, the longer the due diligence
and purchase agreement drafting takes,
the more power may shift back toward
the seller because the buyer is investing
more money as the process continues.
Whether you’re a buyer or seller, in
any sales process you want to be able to
read your opponent like a poker player.
You want to know whether you’re in a
strong position or a weak position. The
stronger your position, the greater your
negotiating leverage.
So short of having ESP, how can you
ascertain the strengths or weakness of
the other party’s position? Here are a
few tips:
• Ask questions and keep quiet.
Let the other person talk. You’ll be
amazed how much one divulges given
the chance.
• Find out the other party’s personal
interests. What seems like an innocent
discussion about hobbies could reveal
that the seller can’t wait to sell his
business and pursue his real passion.
• Pay attention to details. For example, observe employees when visiting
the other party’s office. Are they generally upbeat and happy or not so much?
How clean and orderly is the business?
Is it pristine or showing signs of decline?
The employees and ownership may no
longer have pride in the business and
may be ready to give up.
At some point in a deal, you may find
that you need to give the other party a
piece of information that gives that party
more power over you. Don’t lie. Honesty
is the best policy. Deliver the news in a
matter of fact manner and as neutral
as possible. Lastly, disclose everything
early. The longer you wait to disclose
negative news the more likely you will
leave your credibility at risk.
Keep in mind that negotiating isn’t
about taking advantage of other people.
Deals only get done if the buyer and seller find a mutually agreeable deal. CMN
The views expressed by CMN’s guest
columnists are their own opinions
and do not necessarily reflect those of
Cheese Market News®.
Reprinted with permission from the June 13, 2014, edition of CHEESE MARKET NEWS®© Copyright 2014 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
June 13, 2014 — CHEESE MARKET NEWS®
CHEESE MARKET NEWS
7
®
Retail WATCH
NEWS & MARKETING IDEAS TO HELP SELL MORE CHEESE
Willapa Hills Cheese expands
distribution, adds hard cheeses
By Kate Sander
DOTY, Wash. — A couple of years ago
in Manzanita, a small Oregon coastal
town, a young college-aged intern busily
shared samples of a Washington company’s artisan cheese spreads during an
eclectic evening farmers’ market filled
with consumers who had hurried to the
coastal reprieve to escape the hustle and
bustle of city life.
This scene repeated itself weekly
— with up to 14 farmers’ markets at a
time — as Willapa Hills Cheese, a small
farmstead and artisan cheese company
nestled on the banks of Washington’s
Chehalis River, introduced many consumers to its cheeses. Interns, company
employees and occasionally Willapa Hills
owners Stephen Hueffed and Amy Turnbull themselves would travel throughout
the Northwest in an effort to get the word
out about their sheep’s milk, cow’s milk
and blended milk cheeses.
Bacon Blu, a cream-cheese based
spread, was always a hit at these markets,
but others were popular too — including
Blu, Cranberry Blu, Red Pepper, Honey
Chipotle and Garlic Herb spreads as well
as cow’s milk and mixed milk Blues. It
wasn’t easy — and profitability varied
— but it was an important part of the
company’s marketing plan to introduce
its product and get consumer feedback.
Today, as more and more retailers
carry its cheeses, farmers’ markets
have taken a back seat in Willapa Hills
Cheese’s marketing plans. Now the
company is concentrating on working
through brokers and distributors to get
its cheeses into retailers and restaurants
throughout the Northwest and beyond.
The company, home to 140 milking
ewes and also the purchaser of fresh
cow’s milk from a local dairy, is entering
new markets all of the time. Originally
only found at farmers’ markets and in
high-end retailers and restaurants,
Willapa Hills’ products now are carried
in the specialty retail deli cases of mainstream retailers throughout the West
Coast, including Murray’s Cheese Kiosks
in Washington, Oregon and California,
and Kroger-owned Fred Meyer and QFC
stores throughout the Northwest. Most
recently, Willapa Hills Cheese filled its
first order for Costco, and it is in the
final process of having its products
considered by Whole Foods Market, an
Also in Retail WATCH:
early supporter of Willapa Hills products,
for its national list of approved cheeses.
Willapa Hills Cheese also is finalizing two
new cheeses — Lilly Pad and Ewe Old
Cow — it is introducing in 2015.
• Getting started
Getting Willapa Hills Cheese to where
it is today — with production high
enough to sustain a growing customer
base — has been a steep learning curve
that has occasionally resulted in changes
in direction, Stephen Hueffed says.
Hueffed and his wife Amy Turnbull
made the conscious decision to get into
the cheese business about a decade ago
when they were first starting their family.
Working in the frenetic busyness of the
Seattle area — he in nonprofit management and she as a naturopathic physician — they were becoming increasingly
dissatisfied with corporate structures,
insurance regulations and commutes.
This dissatisfaction eventually led them
to discuss in earnest whether their
combined skill sets and passions could
be turned into a family business and a
different way of life for their young family.
“We both liked artisan cheese and
were idealistic and at the same time pragmatic. We explored three or four possible
paths forward, but ultimately settled on
cheese. There’s a certain energy around
cheesemaking,” Hueffed says.
That dream began to take concrete
form when the couple purchased a historic farmstead near Chehalis, Wash.,
in 2005. With Hueffed still commuting
100 miles each way to the Seattle area,
the couple then took the next step by
establishing their foundation flock of
60 dairy ewes with the help of Dream
Valley Farm in Strum, Wis.
In 2007, a milking parlor was completed and licensed. In 2008, Willapa
Hills’ cheese plant was approved as a
Washington state dairy processor and, on
the Fourth of July, the company crafted
its first batch of cheese under its newly
minted license.
Willapa Hills Cheese started initially
with just sheep’s milk cheese, including
Willapa White, a fresh lactic-style sheep’s
milk cheese, and Fresh with Ewe, a fresh
lactic cheese sprayed with Blue mold.
The years since have seen a flurry of
activity as the couple re-visioned their
product line as they learned more about
production and distribution in the midst
of what was also a challenging economy.
BLUE CHEESE — Both cow’s milk and sheep and cow’s mixed milk Blues are an important
part of Willapa Hills Cheese’s artisan line up. Next year, the company will be introducing
its first hard cheeses.
Fresh with Ewe, for instance, they ultimately decided to discontinue because
it was too fragile.
“It’s best right as retail wants to pull
it from the shelves,” Hueffed explains.
“It just wasn’t a good cheese for distribution.”
They also soon realized that in order
to produce enough product for the business to be sustainable, they would need
to add cow’s milk products as well.
“Through it all we
have kept our eyes
on the goal
of creating quality
natural artisanal cheese
and dairy products
on a family farm.”
Stephen Hueffed
WILLAPA HILLS CHEESE
“It’s really hard to make the math
work with just sheep’s milk,” Hueffed
says, noting that it takes 24 ewes to
produce as much milk as one cow (or
12 ewes to one cow in terms of actual
cheese yield).
As a result, Willapa Hills Cheese
began working with a local family dairy.
Yet despite the occasional changes
in direction, Hueffed and Turnbull
were firm on the overall direction of
the business.
“Through it all we have kept our eyes
on the goal of creating quality natural
artisanal cheese and dairy products on
a family farm,” Hueffed says.
What has become one of Willapa
Hills Cheese’s most popular items began
almost by accident. The company was
making some blue mold cheeses that
tasted great but had too much moisture
and were ripening too fast, Hueffed says.
The cream cheese-based spreads became
the company’s home for too moist or
over-ripe Blue cheese and soon became
its most versatile product. As the spread
line developed, the company began using its premium Blues in the product
as well as adding multiple flavors other
than Blue to the line in order to address
consumers’ diverse flavor desires.
“The spreads are a bridge,” Hueffed
says, noting that they open the door
for consumers and retailers to try the
company’s other cheeses.
In 2011, the couple realized that if
Willapa Hills Cheese was going to be
a financially sustainable business for
the long term, they would need to up
their game once again. With the help
of Brian Howard, broker with Madison
Lane Sales + Marketing, they identified
three priorities: increase production,
aging and staging capacity; enhance
product stability and shelf life through
modified atmospheric packaging (MAP);
and respond to unmet demand in existing
and new markets.
The first two priorities were addressed through two funding sources.
Willapa Hills received a Whole Foods
Market Local Producer Loan in order
to purchase a piston filling machine and
Turn to WILLAPA, page 9 a
Bleating Heart Cheese wins at California fair … Page 8 Marin French offers grilling Brie … Page 10
Reprinted with permission from the June 13, 2014, edition of CHEESE MARKET NEWS®© Copyright 2014 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
8
RETAIL ROUND-UP
CHEESE MARKET NEWS® — June 13, 2014
Bleating Heart Cheese wins Best of Show at California State Fair for cow, sheep milk varieties
a gold medal for its Dry Monterey Jack
with Habanero Peppers, a silver medal
for its Dry Monterey Jack and a bronze
medal for its Oro Secco in the Hard
Cheese (Cow) category.
Bleating Heart Cheese, Tomales, Calif., won gold and Best of Division awards
for Fat Bottom Girl in the Semi-Hard
Cheese (Sheep) category, Moolicious
Blue in the Semi-Soft Cheese (Cow) category and Funky Bleats in the California
Originals (Sheep) category. It also won
a silver medal for Golden Tommette in
the California Originals (Cow) category.
Cowgirl Creamery, Point Reyes Station, Calif., won gold medals for Wagon
Wheel in the California Originals (Cow)
category as well as for Mt Tam and Red
Hawk in the Semi-Soft Cheese (Cow)
category.
Crystal Creamery, Modesto, Calif.,
won Best of Division and a gold medal
for its regular cottage cheese and a gold
medal for its lowfat cottage cheese in the
Cottage Cheese (Cow) category.
Cypress Grove Chevre, Arcata, Calif.,
won gold medals for Humboldt Fog and
Bermuda Triangle in the California
Originals (Goat) category; a gold for
its Humboldt Fog Mini and silver for its
Truffle Tremor in the Semi-Soft Cheese
(Goat) category; and gold for PsycheDillic and silvers for Ms. Natural, Purple
Haze, Herbs de Humboldt and Sgt. Pep-
SACRAMENTO, Calif. — Bleating
Heart Cheese, Tomales, Calif., won
“Best of Show” in both the cow’s milk
and other milk divisions at the recent
California State Fair Commercial Cheese
Competition.
Bleating Heart Cheese’s Moolicious
Blue won Best of Show as well as Best of
Division in the Semi-Soft Cheese (Cow)
category. Its Fat Bottom Girl was named
Best of Show among non-cow’s milk
cheeses, as well as Best of Division in
the Semi-Hard Cheese (Sheep) category.
Formal announcement of the competition winners will be made June 24 at
the California State Capitol and at The
Club House at Cal Expo in Sacramento.
All Best of Division and Best of Show
winning cheeses will be displayed in
the Save Market Supermarket California’s Kitchen in Building B during the
California State Fair, which runs July 11
through July 27.
Following are the contest’s medal and
division winners by company:
Barinaga Ranch Inc., Marshall, Calif.,
won a gold medal for its Baserri and a
silver medal for its Txiki in the Semi-Hard
Cheese (Sheep) category.
Bear Flag Brand by Vella Cheese Co.
of California, Sonoma, Calif., received a
gold medal for Cheddar with Jalapenos
and a silver medal for its Cheddar in the
Semi-Hard Cheese (Cow) category, and
Quality
You Can Trust.
Innovation
You Can Taste.
Celebrating Successful
Partnerships for 60 Years!
Introducing our
Newly Expanded
Glacier Ridge Farms TM Line:
•
•
•
•
•
Handcrafted In America’s Dairyland
Naturally Smoked Cheeses
Gourmet Spreadable Cheeses & Dips
Smokey Bars/Snack Wedges
Variety of Flavors
FOODSERVICE
In Perfect Shape For a Growing Industry
SQF Level 3 Certified
This certification ensures our
customers that our cheese products
have been produced and handled in
accordance with the highest standards
set by the Food Marketing Institute (FMI).
■ Creative blend of vision and flexibility
■ Unique product offerings
■ Naturally smoked cheeses tailored to fit every
packaging configuration
■ Extensive single serving/portion-controlled sizes
PRIVATE LABEL
Build Your Brand With Quality You Can Trust
■ Expansive array of custom formulations
■ Innovative packaging solutions
■ Ability to drive new sales
RETAIL HOUSE BRANDS
Diversify Your Product Portfolio
With Our Proven Winners
Call us today for details:
■
■
■
■
Unique flavor profiles
Market versatility to maximize sales performance
Price competitiveness & in-store support
Low minimum order quantities
2819 County Road F • Blue Mounds, WI 53517
Ph: (608) 437-5598 • Fax: (608) 437-8850
[email protected] • www.dairyfoodusa.com
For more information please visit www.dairyfoodusa.com
per in the Soft Cheese (Goat) category.
Don Francisco Cheese by Rizo Lopez
Foods Inc., Modesto, Calif., won gold
for its Cotija in the Hard Cheese (Cow)
category.
Ewetopia Dairy Inc., Denair, Calif.,
won a silver medal for its Philosopher
in the California Originals (Sheep)
category.
Fiscalini Cheese, Modesto, Calif.,
won gold and Best of Division honors
for two cheeses: Lionza in the California
Originals (Cow) category, and Bandage
Wrapped Cheddar in the Semi-Hard
Cheese (Cow) category. Fiscalini also
won silver medals for its San Joaquin
Gold in the California Originals (Cow)
category and for Purple Moon in the
Semi-Hard Cheese (Cow) category.
Gypsy Cheese Co., Valley Ford, Calif.,
won gold and Best of Division for Gypsy
Rose in the Semi-Soft Cheese (Goat)
category and silver for Caravan in the
Soft Cheese (Goat) category.
Jollity Farm, Garden Valley, Calif.,
won silver for its Feta Marinade and
bronze for its Chevre in the Soft Cheese
(Goat) category.
Joseph Farms Cheese by Joseph Gallo
Farms, Atwater, Calif., won gold medals
for its Medium Cheddar and Pepper
Jack, silver for Extra Sharp Cheddar
and Marbled Jack, and bronze for its
Mild Cheddar and Sharp Cheddar in
the Semi-Hard Cheese (Cow) category.
Joseph Farms Cheese also won bronze
medals for its part-skim Mozzarella and
whole milk Mozzarella in the Semi-Soft
Cheese (Cow) category.
Laura Chenel’s Chèvre, Sonoma,
Calif., won gold and Best of Division with
its Chevre Log in the Soft Cheese (Goat)
category. Laura Chenel’s Chefs Chevre
and Orange Blossom Honey Log also both
won golds, and its Crushed Olive Log,
Truffle Log and Cabecou won silvers in
the Soft Cheese (Goat) categories. Its
Original Buchette won a silver in the
Semi-Soft Cheese (Goat) category.
Marin French Cheese, Petaluma,
Calif., won gold medals for its Petite
Supreme and Schloss, silver for its
Petite Blue, Petite Vanilla and Triple
Creme Brie, and Bronze for its Petite
Camembert, Traditional Brie and Jalapeno Brie in the Semi-Soft Cheese
(Cow) category. The company also won
a gold for its Blackberry Quark and silver
for its Jalapeno Quark in the Cultured
Cheese (Cow) category and a bronze for
its Petite Breakfast in the Soft Cheese
(Cow) category.
Nicasio Valley Cheese Co., Nicasio,
Calif., won Best of Division and a gold
medal for its Foggy Morning in the Soft
Cheese (Cow) category. It also won
gold medals for its Nicasio Reserve in
the Semi-Hard Cheese (Cow) category
and its Nicasio Square in the SemiSoft Cheese (Cow) category. Its San
Geronimo won silver in the California
Originals (Cow) category.
Organic Pastures Dairy, Fresno, Calif., won a silver medal for its Raw Cheddar Cheese in the Semi-Hard Cheese
(Cow) category.
Orland Farmstead Creamery, Orland,
Calif., won silver medals for its Fromage
Blanc in the Cultured Cheese (Cow)
category and its Mozzarella in the Soft
Cheese (Cow) category, and bronze
medals for its Ricottage in the California
Originals (Cow) category and Fromage
Blanc in the Cultured Cheese (Cow)
category.
Pennyroyal Farm, Boonville, Calif.,
won Best of Division and gold in the Hard
Cheese (Goat) category for its Boont
Corners Vintage. In the Soft Cheese
(Mixed) category, it won gold for its
Laychee, silver for its Pepper Moldunes
and Laychee with Blueberries, and
bronze for its Laychee with Chive Flower.
It won silver for Bollie’s Mollies in the
California Originals (Sheep) category
and Boont Corners 2 in the Semi-Hard
Cheese (Goat) category. In the SemiSoft Cheese (Mixed) category, it won
silver for Boonter’s Blue and bronze for
Velvet Sister.
Point Reyes Farmstead Cheese Co.,
Point Reyes Station, Calif., won a gold
medal for its Toma in the Semi-Hard
Cheese (Cow) category, and silver for
its Bay Blue in the California Originals
(Cow) category and a silver for its
Original Blue in the Semi-Soft Cheese
(Cow) category.
Pugs Leap, Petaluma, Calif., won
silver for its Chèvre in the Soft Cheese
(Goat) category and bronze for its Petit
Marcel in the Semi-Soft Cheese (Goat)
category.
Queso Salazar, Brentwood, Calif.,
won gold medals for its Oaxaca in the
Semi-Hard Cheese (Cow) category and
Fresco in the Semi-Soft Cheese (Cow)
category, and silver for its Panella in the
Soft Cheese (Cow) category.
Redwood Hill Farm, Sebastopol,
Calif., won Best of Division and a gold
medal for its Kefir in the Cultured Cheese
(Goat) category and a bronze medal for
its Green Valley Organics Creme Fraiche
in the Cultured Cheese (Cow) category.
Redwood Hill also won a gold medal for
its Cameo in the Semi-Soft Cheese (Goat)
category and a silver for its Feta in the
Soft Cheese (goat) category.
Rumiano Cheese Co., Crescent City,
Calif., won gold for its Dry Jack and
Peppato Dry Jack in the Hard Cheese
(Cow) category, and silver for its Organic
Jalapeno Pepper Jack and bronze for its
Organic Monterey Jack, Smoked Mozzarella and Organic Smoked Mozzarella in
the Semi-Hard Cheese (Cow) category.
Dairy Fresh made by Saputo Dairy
Foods USA, City of Industry, Calif., won
gold and Best of Division for its Cream
Fraiche and bronze for its Kefir in the
Cultured Cheese (Cow) category. In the
Cottage Cheese (Cow) category, it won
gold medals for its lowfat cottage cheese,
natural 4-percent cottage cheese and
nonfat cottage cheese; silver medals for
organic lowfat cottage cheese, organic
4-percent cottage cheese and large curd
cottage cheese; and bronze for natural
lowfat cottage cheese, 4-percent cottage
cheese, organic nonfat cottage cheese
and pineapple cottage cheese.
Sierra Nevada Cheese Co., Willows,
Calif., won a bronze medal for its Bella
Capra Cheddar in the Soft Cheese (Goat)
Turn to FAIR, page 9 a
Reprinted with permission from the June 13, 2014, edition of CHEESE MARKET NEWS®© Copyright 2014 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
RETAILING PERSPECTIVES
WILLAPA
Continued from page 7
a MAP cupping machine. This dramatically increased efficiency and doubled
product shelf life, effectively making
Willapa Hills a viable source of cheese
for larger retailers. Thanks to the MAP
cupping machine, the company’s cheese
spreads now have a 45-day shelf life.
Willapa Hills also engaged Slow
Money NW in order to secure funding
for a new vat and related production
equipment. Through Slow Money, a
local investor, also a farmer, funded the
purchase of a used 600-gallon vat from
Ohio, significantly increasing production efficiency and capacity of its aged
cheeses.
“We’re notching up our business and
working to become a significant regional
producer,” Hueffed says.
• Introducing new cheeses
The third priority of responding to
unmet demand in existing and new
markets is now in process.
For the last few years, the company
has offered Big Boy Blue, a natural rind
Blue cheese made with cow’s milk that
also is an American Cheese Society
award winner. The company also makes
Two-Faced Blue, a sheep and cow’s
mixed milk cheese similar to a mountain
Gorgonzola.
FAIR
Continued from page 8
category and a silver medal for its Caprae Raw Milk Aged Goat Cheddar in the
Semi-Hard Cheese (Goat) category. Its
Graziers Raw Milk Monterey Jack and
Raw Milk Medium Cheddar both won
silver medals in the Semi-Hard Cheese
(Cow) category. Additionally, its Sierra
Nevada Cultured Classics Creme Kefir
won gold and Organic Creme Fraiche won
bronze in the Cultured Cheese (Cow)
category, and Sierra Nevada Cultured
Classics Old Fashion Cream Cheese won
silver in the Soft Cheese (Cow) category.
Spring Hill Jersey Cheese, Petaluma,
Calif., won gold for its organic Mike’s
Willapa Hills also introduced Pluvius,
an aged cow’s milk table cheese. While
the company started out focusing on
Blue cheese, it found many people who
don’t like it. Pluvius — named after
the Greek god of rain and an appropriate name for a cheese made on a dairy
where it rains more than 70 inches a
year — was created to bridge the gap.
Essentially Big Boy Blue without the
blue, the semi-soft aged cheese is now
made in 5-pound wheels.
The cheeses have been and continue
to be available at many specialty retailers in the Northwest whom Hueffed appreciates for working with Willapa Hills
Cheese while they “worked the kinks
out.” These include Washington stores
PCC Natural Markets, Town & Country/
Central Market, Metropolitan Market
and Oregon’s Market of Choice and New
Seasons in addition to Whole Foods and
other stores throughout the Northwest.
Willapa Hills now is in the process
of bringing its first hard cheeses to
market. While both are originals to the
marketplace, they find their inspiration
in other hard cheese. The first, Lilly Pad,
is inspired by Gruyere and is a cow’s milk
cheese made in a 15-pound barrel. It
will be launched in January 2015. Ewe
Old Cow, also made in a 15-pound barrel, is a mixed milk cheese inspired by
Pecorino Romano and is expected to be
launched in August 2015. Hueffed says
Firehouse Jack and silver for its Garlic
Jack, organic Medium White Cheddar
and organic Yellow Cheddar in the SemiHard Cheese (Cow) category. Spring Hill
Jersey Cheese’s Petaluma Creamery also
won silver for its Monterey Jack and
bronze for its Colby Jack in the SemiHard Cheese (Cow) category.
Tomales Farmstead Creamery, Tomales, Calif., won bronze for its Assa in
the California Originals (Goat) category
and a bronze for its Liwa in the Soft
Cheese (Goat) category.
Valley Ford Cheese Co., Valley Ford,
Calif., won Best of Division and gold
for its Estero Gold Reserve in the Hard
Cheese (Cow) category. It also won a
gold medal for its Estero Gold in the
Semi-Hard Cheese (cow) category. CMN
June 13, 2014 — CHEESE MARKET NEWS®
ARTISAN NORTHWEST PRODUCER — Stephen Hueffed and Amy Turnbull left busy careers in the city to raise their children and make cheese on a farm nestled on the banks of
Washington’s Chehalis River.
these cheeses are key to the company’s
growth.
As Willapa Hills Cheese prepares to
launch its new products, it also continues
to market its product through a number
of grassroots efforts. The company boasts
an in-depth website where cheese can be
purchased, and its Facebook presence
is growing. The company also operates
a farm store, open daily, and offers a
variety of “farm immersions” for groups
from three to 30 or more. Each immersion is customized to meet the needs of
the particular group with participants
3/52#).'!.$,/')34)#
3%26)#%3
30%#)!,):%$&/2-5,!4)/.3
,%!$).'3).',%3/52#%
$!)293500,)%2
5.0!2!,,%,%$3%26)#%3
frozen Greek yogurt. In the ad, Stamos
quickly recovers from a painful break up
with the delicious treat of Dannon Oikos
Greek Frozen Yogurt.
“I love making these commercials
for Oikos because they’re fun and the
product is really great,” says Stamos.
“I found myself eating the Oikos Greek
frozen yogurt in between takes even after
taking so many on-camera bites. I hope
people love the ad as much as I love this
Greek frozen yogurt.”
Dannon Oikos Greek Frozen Yogurt is
available nationwide in pint containers
with a retail price of $3.99, including six
flavors: Vanilla, Chocolate, Strawberry,
Café Latte, Black Cherry and Key Lime.
For more information visit Facebook.com/Oikos or
www.OikosYogurt.com.
CMN
spending significant blocks of time immersed in one or more aspects of the
creamery or farm’s production.
In addition, Willapa Hills Cheese currently is collaborating with another local
sheep dairy and a regional cheese producer
in an effort to establish a larger flock of
ewes on one operation to maximize returns.
The effort, still in its planning stages, has
the power to result in significant economies of scale and quality milk production,
Hueffed says, which would allow all three
companies to further expand production
of sheep and mixed milk cheeses. CMN
Our Expertise in World Dairy
Markets Makes MCT Your Global
Partner for Successful Results
Dannon launches Oikos Greek Frozen Yogurt
WHITE PLAINS, N.Y. — The Dannon
Co. is expanding into the frozen aisle,
just in time for summer, with the launch
of Dannon Oikos Greek Frozen Yogurt.
This new product offering, available in
six flavors, marks the brand’s first move
into the frozen for home consumption
category.
“While the phenomenon of Greek
yogurt continues to drive growth in
the refrigerated section, the trend is
just starting to expand into the frozen
aisle,” says Art D’Elia, vice president
of marketing, The Dannon Co. “Oikos
consumers are always looking for smarter
alternatives that don’t sacrifice the taste
they love.”
John Stamos returns in a familiar
role as the Dannon Oikos spokesman in
a TV spot supporting the launch of the
9
Could you use assistance in
managing your supply chain?
We have expanded our team to
bring you unprecedented expertise
and knowledge in today’s complex
world markets.
s3OURCINGAND,OGISTIC3ERVICES
s3PECIALIZED&ORMULATIONS
s,EADING3INGLE3OURCE$AIRY3UPPLIER
s!GING0ROGRAMS
s(EDGING3ERVICES
s5NPARALLELED3ERVICES
s%XPERTISEINTHE'LOBAL$AIRY-ARKET
s%XPORT3ERVICES
%80%24)3%).4(%',/"!,
$!)29-!2+%4
MCT Dairies is the leading
supplier of cheese and
dairy ingredients, offering
innovative solutions
throughout the world.
0HONE OR
%MAIL INFO MCTDAIRIESCOM
7EB WWWMCTDAIRIESCOM
For more information please visit www.mctdairies.com
Reprinted with permission from the June 13, 2014, edition of CHEESE MARKET NEWS®© Copyright 2014 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
10
THE CHEESE TABLE
CHEESE MARKET NEWS® — June 13, 2014
Trader Joe’s is consumers’ favorite grocery store for second year
BOULDER, Colo. — A study of more
than 6,200 consumers by Market Force
Information, a customer intelligence
solutions company, found that Trader
Joe’s is North America’s favorite grocery
retailer based on satisfaction. Publix and
ALDI were ranked second and third.
The study was designed to uncover
the grocers that shoppers frequent most
often, which chains excel in customer
satisfaction and why they prefer one to
another. For the rankings, Market Force
asked participants to rate their satisfaction with their most recent grocery
shopping experience and their likelihood to refer that grocer. The results
were averaged to attain a “Composite
Loyalty Score,” which reveals the intersection between overall satisfaction
and the likelihood of recommending a
store to others.
Trader Joe’s took the No. 1 spot out of
the grocery chains studied, with a score
of 82 percent, and was trailed by Publix
with 80 percent. ALDI, Costco and HyVee rounded out the top five. This is the
second year in a row that Trader Joe’s
ranked first and Publix ranked second.
With its unique private-label products such as Speculoos Cookie Butter
and Green Tea Mints, and a constantly
rotating array of merchandise, Trader
Joe’s has amassed a loyal following of
shoppers looking for an unconventional
grocery shopping experience with a
neighborhood feel. The national chain
is regularly recognized for delivering a
level of customer service and satisfaction that exceeds expectations.
Market Force ascertains what sets
the leading grocery brands apart from
the pack, as well as potential areas for
industry differentiation, by looking at
why shoppers spend the majority of their
grocery dollars at one store over another.
Publix and Trader Joe’s scored highest in many of the operational attributes
that matter most to consumers, including courteous service, fast checkouts and
inviting atmosphere. ALDI was the clear
leader in low prices, ShopRite received
the highest marks for its sales and promotions, and Walmart was lauded for
offering a one-stop shopping experience.
Hy-Vee and H-E-B also ranked in the top
five of many of the categories.
Trader Joe’s dominated in categories
related to healthy food and nutrition.
It scored an 83 percent for its natural
and organic food choice, far ahead of
Publix with 31 percent. It also led by
a wide margin in providing nutrition
and health information and instituting
sustainable policies. The honors for
best private-label brand products also
went to Trader Joe’s, followed by ALDI
and H-E-B.
On a national basis, shoppers reported spending more money grocery
shopping at Walmart than any other
chain. Walmart has thousands of locations in North America and some of the
other brands have fewer than 100.
Consumers were also asked to rate
their customer experience during their
most recent grocery shopping trip and
while 50 percent said they were delighted, the remainder rated their experience
either satisfactory or bad. This could
point to a missed opportunity for grocery
brands that are failing to capitalize on
their operational expenditures or to
foster customer loyalty.
“Competition is fierce and growing
in the grocery sector with regional players going national and national players
moving toward neighborhood market
concepts. It’s only getting more difficult
to attract and keep customers, and being adequate is no longer good enough,”
says Janet Eden-Harris, chief marketing
officer, Market Force. “We’ve found that
delighted customers are three times
more likely to recommend a grocery
store than those who had just an OK
experience. This tells us that chains
that truly wow their customers on their
first visit can establish brand advocates
who go on to recommend the grocer to
friends and family.”
Of those who reported dissatisfaction, the most common reasons given
were long checkout times, inability to
find the products they want, the produce
quality was lacking, poor service by floor
associates and poor service by cashier.
Local food sourcing is of increased
interest and importance to shoppers,
based on Market Force’s study findings.
More than half said that local sourcing
of meat, produce and dairy products
is important or very important, and 65
percent are more likely to buy these
products if they’re locally sourced.
Organic foods continue to gain in
traction, and the most prevalent organic
products purchased are produce, meat,
dairy, snacks and cereal. The main reasons given for purchasing organic were
better nutritional value, better quality
and absence of genetically modified
organisms (GMOs).
Half of those surveyed have little-tono familiarity with GMOs — 38 percent
indicated they’re unfamiliar with them,
compared with 13 percent who said
they’re very familiar with them. Of those
who indicated they’re very familiar with
GMOs, 69 percent expressed a concern
about their use.
A trend that doesn’t seem to be
gaining much steam is online ordering.
Eighty-eight percent said they have
never ordered groceries online, and
67 percent indicated that they have
no interest in ordering them online in
the future.
The survey was conducted in March
2014 across the United States and
Canada. The pool of 6,247 respondents
reflected a broad spectrum of income
levels, with nearly 60 percent reporting
household incomes of more than $50,000
a year. Respondents’ ages ranged from 18
to over 65. Approximately 73 percent were
women and 27 percent were men, and
50 percent have children at home. CMN
The Standard of Excellence
in Cheesemaking Equipment
Horizontal Cheese Vats
10,000 - 80,000 lb. capacity
Cheese
C
h
Vats
V
featuring OptiSet Technology
Block Formers
Cottage Cheese Vatss
Draining/Salting Belts
lts
Curd Tables
Process Engineering
g
/
Innovative process solutions, engineered right.
USA . The Netherlands . New Zealand
+1 (320) 231-2210 www.relco.net
For more information please visit www.relco.net
Sartori releases
Limited Edition
Extra-Aged Goat
cheese for summer
PLYMOUTH, Wis. — Sartori Co. recently
announced it is releasing its Limited
Edition Extra-Aged Goat cheese for
June and July.
Hand-crafted in small batches, the
cheese is released just twice a year
and is sold to specialty cheese shops
throughout the United States.
Introduced in 2012, Sartori’s ExtraAged Goat cheese was crafted with a
different approach than a typical fresh
goat’s milk cheese.
“With our traditions and our innovation and craft, we created a hard goat’s
milk cheese aged at least 10 months,”
says Pam Hodgson, Wisconsin Master
Cheesemaker for Sartori. “When you try
the cheese, you’ll notice savory, caramel
notes which help to create a mild and
balanced cheese.”
The cheese has won multiple awards
since its launch date, including a gold
medal at the Global Cheese Awards held
in the United Kingdom.
“We thought this cheese was something special, and the first time we
entered it in a competition, we took
home top honors,” says Chad Vincent,
chief marketing officer, Sartori. “It was
rewarding to see this cheese internationally recognized and validate what we all
were thinking.”
Sartori partners with LaClare Farms,
Malone, Wis., to source high quality
goat’s milk.
“LaClare Farms is the perfect fit with
Sartori,” Hodgson says. “We’ve known
them for years, and we’ve seen the care
they provide to their goats. They believe
in feeding a good quality, balanced ration
to their goats to produce natural, high
quality milk, which in turn plays an important role in our quality goat cheese.”
Sartori’s Limited Edition Extra-Aged
Goat cheese is available at specialty
cheese shops throughout the country
this month and next. In addition, a limited supply of wedges will be available
for sale at the Sartori online cheese
shop at www.sartoricheese.com. CMN
Marin French Cheese
creates Grilling Brie
MODESTO, Calif. — Marin French
Cheese recently released its Grilling
Brie. The product includes an 8-ounce
wheel of Traditional Brie paired with a
topping, fitted with a custom cedar plank
and ready to fire up on the backyard grill.
Each set is packed with one of three
flavor packets: Apricot Jalapeno, Apple
Pecan or Caramelized Onion. Marin
French Cheese suggests pairing its
new creation with bread, sausage or
vegetables for dunking in the cheese.
Grilling Brie is available now in Marin
French Cheese’s creamery retail shop
and will be coming soon to local grocery
or specialty stores nationally.
For more information visit www.
marinfrenchcheese.com.
CMN
Reprinted with permission from the June 13, 2014, edition of CHEESE MARKET NEWS®© Copyright 2014 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
June 13, 2014 — CHEESE MARKET NEWS®
11
PEOPLE
Comings and goings ... comings and goings
Mike Brennenstuhl has joined
Cheese and Whey Systems Inc. (CWS),
Marshfield, Wis., as vice president of
Cheese Technology. Brennenstuhl will be
responsible for the technical cheesemaking support for all cheese manufacturing
systems offered by CWS. He also will
support all business development activities, assisting in the development of
new processing systems offered by CWS.
Brennenstuhl brings more than 41 years
of cheese manufacturing experience and
has a Wisconsin Master Cheesemaker
certification.
The Dairy Business Association’s
(DBA), Green Bay, Wis., board of directors has announced the creation of the
director of dairy policy position. Laurie
Fischer, former executive director of
DBA, will immediately assume the position and focus exclusively on issues affecting Wisconsin’s dairy industry. DBA also
has appointed John Holevoet to serve as
government relations manager. Holevoet
is a licensed attorney and will report to
Fischer. DBA’s board of directors has
recently begun a candidate search for
its new executive director of business
affairs role.
Dairy Farmers of Canada (DFC),
Ottawa, has announced Richard Doyle,
executive director, plans to retire Aug.
31. Doyle’s retirement marks 38 years of
continuous service to the organization.
He has agreed to remain an advisor to
the president for the remainder of the
year as DFC proceeds with transitioning
of leadership.
FarmFirst Dairy Cooperative, Madison, Wis., has welcomed Bill Burri to its
team to serve as a field representative
for Northeast Wisconsin and the Upper
Peninsula of Michigan within the Family
Dairies USA division. Burri is a licensed
cheesemaker and previously serviced
farms for S&R Cheese (now known as
Sartori Foods), Plymouth, Wis.; worked
as a field service manager for White
Clover Dairy Inc. (owned by Arla Foods),
Kaukauna, Wis.; and most recently served
as a cheesemaker for Land O’Lakes, Kiel,
Wis.
Richard Stein has been appointed to
the position of vice president of fresh foods
for the Food Marketing Institute (FMI),
Arlington, Va. Stein will be responsible
for developing a portfolio of services and
activities to assist members in developing
and executing fresh food strategies. Prior
to joining FMI, he was vice president of
retail merchandising and marketing
execution for Safeway, Pleasanton, Calif.,
where he had a 30-year tenure.
Wildeck Inc., Waukesha, Wis., has
promoted Jim Hathaway to senior guarding products specialist. Hathaway will
concentrate on growing the company’s
safety guarding products business through
additional training of existing Wildeck
dealers, as well as the recruitment of
new safety product dealers. Todd Ehlers
was added as a new guarding products
sales specialist/inside regional sales
manager. Mike Arney was promoted
to chairman of the board for Ladder
Industries, Goodyear, Ariz., a Wildeck
subsidiary. Tim Gonzalez was promoted
to general manager and John Cifra
was added as a new inside sales representative for Ladder Industries. CMN
Obituaries
Emil Robert Fischer
NAPLES, Fla. — Emil Robert Fischer,
born Nov. 23, 1926, in Green Bay,
Wis., died here peacefully May 10 surrounded by his family.
Fischer was the former owner and
president of Atlas Warehouse and Cold
Store Co., Green Bay, Wis. The company
was established in 1926 by Fischer’s
father, Emil Robert Fischer Sr. After
his father’s death in 1958, Fischer
took over as the company’s owner
and president until his retirement in
1991. Atlas served national companies
Patricia Van Dam
CLAREMONT, Calif. — Patricia
Van Dam passed away May 31, here
under hospice care, at the age of 58.
Van Dam was born Dec. 26, 1955 in
Richland, Mo.
Van Dam devoted significant time
serving on the San Bernadino Farm
BAKERSFIELD, Calif. — Henry
VanderPoel, born June 11, 1940, in
Artesia, Calif., died here June 4.
VanderPoel and his brother went
into partnership in the dairy business
in the 1960s in Cypress, Calif. The
dairy was moved to Chino, Calif., in
1964, where VanderPoel brought his
sons into the business. He moved the
dairy to Wasco, Calif., in 2006 with
his son, Robert, as a partner. VanderPoel served on the California Milk
Advisory Board from 1988-2012, and
had a multi-decade tenure as a Milk
Producers Council director.
He is survived by his wife Agnes;
daughters Agnes and Susan; sons Henry, John, Robert and Brian; brother
Pete; sister Beatrice; 31 grandchildren; and one great-grandchild. CMN
WE SERVICE
THE GLOBE
FDA announces public meeting on food
labeling rules for nutrition and serving size
sumed; Serving Size for Breath Mints;
and Technical Amendments.”
The purpose of the meeting is for
FDA to inform the public of the provisions of the proposed rules and the rulemaking process, respond to questions
about the proposed rules, as well as
provide an opportunity for interested
persons to make oral presentations.
FDA is encouraging attendees to
register online before the meeting
because seating is limited. There is no
fee to register. The meeting also will
be broadcast live via webcast.
For more information contact
Cindy de Sales, The Event Planning Group LLC, at 240-316-3207 or
[email protected].
CMN
Bureau, the California Milk Advisory
Board and the Farm Service Agency’s
County Committee.
She is survived by her husband
Bert; children Renae and BJ; sisters Teresa and Janet; brother Peter; and four grandchildren. CMN
Henry VanderPoel
EVENTS
WASHINGTON — FDA recently announced a public meeting it will be
holding Thursday, June 26, 8:30 a.m.5 p.m. at the Jefferson Auditorium,
USDA, Washington, to discuss two
proposed rules aimed at updating
nutrition information and serving size
requirements on the Nutrition and
Supplement Facts labels.
The two rules are specifically
named “Food Labeling: Revision of
the Nutrition and Supplement Facts
Label,” and “Food Labeling: Serving
Sizes of Foods that can Reasonably
be Consumed at One-Eating Occasion;
Dual-Column Labeling; Updating,
Modifying, and Establishing Certain
Reference Amounts Customarily Con-
including the American Foods Group,
A&P, the Larson Co., Kraft Foods, Pauly,
Schreiber Cheese and Swift.
He is survived by his wife, Gail
Fischer; daughters Catherine Fischer,
Laura Fischer, Jennifer McKnight
Lupes, Linda Fischer and Leslie
Fischer; son Kurt Randall Fischer;
and grandson Derek Osen. He was
preceded in death by his father Emily Robert Fischer Sr.; mother Myra
Fischer; sister Nancy Fischer-Tincher;
and stepson Gregory Boulanger. CMN
with quality scientific equipment
manufactured by us at our Colorado
facility and select products by other
manufacturers. All products and
equipment come with a full
manufacturer’s warranty and are
backed by the knowledgeable
personnel at UDY Corporation.
5$9#ORPORATION also has the
expertise to assist you with all of
your project needs and a complete
fabrication shop is at your service.
When you select UDY you get price,
product and experience!
UDY Corporation
201 Rome Ct.,
Ft. Collins, CO 80524
PH: 970.482.2060
FAX: 970.482.2067
EMAIL: bill@udyonecom
WEB: www.udyone.com
Proven Technology Since 1960
s $IRECT0ROTEIN
2EADOUT
s (IGH#ORRELATION
WITH+JELDAHL
#OMBUSTION
s 1UICK%ASY
/PERATION
s !FFORDABLE
s 0RECISE!CCURATE
AND2EPRODUCIBLE
s #USTOMIZEDTO9OUR
.EEDS"UDGET
s !PPLICABLETO
#HEESE$AIRY
-ANY#OMMODITIES
For more information please visit www.udyone.com
Reprinted with permission from the June 13, 2014, edition of CHEESE MARKET NEWS®© Copyright 2014 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
12
CHEESE MARKET NEWS® — June 13, 2014
NEWS/BUSINESS
AGING
Continued from page 1
Swiss Valley Farms, which acquired
Faribault in 2010. Jirik also is a board
member of the American Cheese
Society (ACS).
ACS earlier this week issued a
position statement on the safety of
aging cheese on wood in response
to FDA.
“For centuries, cheesemakers
have been creating delicious, nutritious, unique cheeses aged on wood,”
the statement says. “Today’s cheesemakers — large and small, domestic
and international — continue to use
this material for production due to its
inherent safety, unique contribution
to the aging and flavor-development
process, and track record of safety
as part of overall plant hygiene and
good manufacturing practices. No
foodborne illness outbreak has been
found to be caused by the use of wood
as an aging surface.”
ACS also says “FDA should provide timely notification, hold proper
listening sessions and comment periods, review all available scientific
data and include consideration of
industry stakeholders before modify-
ing long-standing interpretation or
implementation of its regulations
which impact American businesses.”
A petition posted on whitehouse.
gov this week also urged FDA to lift
restrictions on ripening cheese on
wooden boards: https://petitions.
whitehouse.gov/petition/lift-fda-restrictions-ripening-cheese-woodenboards-which-will-devastate-american-craft-cheese/JXNNnM7x
“Many of the most awarded and
well-respected American artisan
cheeses are currently aged on wooden
boards. It is a thousands-year-old
tradition that in some cases defines
the very type of cheese,” the petition
says. “This ban will hurt American
business and reduce American
competitiveness abroad. Work with
industry leaders to lift this unnecessary ban!”
In addition, U.S. Rep. Peter Welch,
D-Vt., this week said he would move
forward with an amendment to the
fiscal year 2015 agriculture appropriations bill that would prohibit
FDA from banning the use of wooden
boards in cheesemaking.
“Artisan cheesemakers cannot
afford to live with this threat to their
livelihoods caused by regulatory ambiguity at the FDA,” Welch says. He
For more information please visit www.hadencustance.com
“All industry
stakeholders should
have a voice, and
changes to the
interpretation of
regulation must take
into account the
diverse products,
producers and successful,
safe models in common
usage around the world.”
AMERICAN CHEESE SOCIETY
and other lawmakers sent a letter to
the full House on the amendment.
“This bureaucratic overreach by
the FDA is a solution in search of
a problem. Artisan cheesemakers
already have rigorous protocols
in place to assure the safety of
their product. Instead of banning
a centuries-old aging process and
triggering a possible trade war with
Europe, the FDA should take a deep
breath and work collaboratively with
food scientists and cheesemakers to
ensure their products meet the high
standards expected by cheese loving
consumers around the world,” the
letter says.
In Wisconsin, Agriculture Secretary Ben Brancel also weighed in on
the issue.
Brancel sent a letter to Michael R.
Taylor, FDA deputy commissioner for
foods and veterinary medicine, saying
there seems to be no public healthbased need for a change in policy.
Following the industry uproar and
extensive media coverage of the issue,
FDA on Wednesday issued a statement clarifying that the agency is not
banning the use of wooden boards in
cheesemaking.
“The FDA does not have a new
policy banning the use of wooden
shelves in cheesemaking, nor is there
any FSMA (Food Safety Modernization Act) requirement in effect that
addresses this issue. Moreover, the
FDA has not taken any enforcement
action based solely on the use of
wooden shelves,” the statement says.
“In the interest of public health,
the FDA’s current regulations state
that utensils and other surfaces that
contact food must be ‘adequately
cleanable’ and properly maintained.
Historically, the FDA has expressed
concern about whether wood meets
this requirement and has noted these
concerns in inspectional findings.
FDA is always open to evidence that
shows that wood can be safely used
for specific purposes, such as aging
cheese,” the statement continues.
“The FDA will engage with the artisanal cheesemaking community to
determine whether certain types of
cheeses can safely be made by aging
them on wooden shelving.”
FDA also says it recognizes its
January memo has prompted concerns in the artisanal cheesemaking
community.
“The communication was intended as an official policy statement
but was provided as background
information on the use of wooden
shelving for aging cheese and as an
analysis of related scientific publications,” the agency says. “Further, we
recognize the language used in this
communication may have appeared
more definitive than it should have, in
light of the agency’s actual practices
on this issue.”
Brancel says he is pleased to see
FDA responding quickly to the matter.
“DATCP will continue to work with
the FDA as it engages the cheesemaking community on this issue,” he says.
Wisconsin Gov. Scott Walker also
issued a statement following FDA’s
response.
“Wisconsin’s cheese industry is
vitally important to our state, as well
as the nation,” Walker says. “I am
pleased with the FDA’s response to
DATCP Secretary Brancel’s letter, as
well as others voicing concern, signaling their plans to engage members of
the cheese industry as they evaluate
the use of wooden shelves to age
cheese, a process that follows sanitation procedures already established
in Wisconsin.”
ACS says it is “delighted” that
FDA is open to considering a broader
scientific perspective on the safe use
of wood in cheese aging.
“All industry stakeholders should
have a voice, and changes to the
interpretation of regulation must
take into account the diverse products, producers and successful, safe
models in common usage around the
world,” ACS says.
The Cheese Importers Association
of America (CIAA) also applauded
FDA’s revised statement. The association also says it would like to work
with FDA to develop an effective
protocol that will ensure the safety
of cheeses aged on wood boards.
“We believe a mutually-acceptable
resolution can be achieved that
will ensure food safety without
removing a centuries-old practice
used to make the finest gourmet cheeses,” CIAA says. CMN
Bemis receives
two DuPont awards
OSHKOSH, Wis. — Bemis Co. Inc.
received two DuPont Awards for Packaging Innovation at a ceremony held
in Wilmington, Del., May 15. The Hillshire Brands Heat Fresh package from
Bemis North America and a standup
foodservice pouch for Fujini brand
vegetable from Bemis Latin America
came away with silver awards. CMN
Reprinted with permission from the June 13, 2014, edition of CHEESE MARKET NEWS®© Copyright 2014 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
June 13, 2014 — CHEESE MARKET NEWS®
13
LARGEST FLUID MILK AUCTION IN YEARS!
Aseptic, UHT, ESL Equip.
formerly of FARMLAND
& BORDEN
2-DAY AUCTION: JULY 22-23 - Wallington, NJ
• (30) S/S Silos including Aseptic to 60k Gallon
• (15) Aseptic, ESL, UHT, Fresh Milk Filling Lines
• (5) Uniloy Model 350R2 Blow Mold Lines
• (7) Aseptic, UHT & ESL Pasteurization Systems
• New as 2013 Milk Crate & Corrugated Case
Handling Systems, Crate Washers, More
• Boilers, Air Compressors, Refrigeration
• Fanuc Robotic Palletizers, (16) Forklifts, S/S
Pumps, Spare Parts, Maintenance & More!
(2) ADDITIONAL FORMER BORDEN FLUID MILK AUCTIONS!
AUG. 13: Madisonville, KY - (3) Milk Filling Lines, Blow Mold, S/S Tanks, Processors
SEPT. 10: Baton Rouge, LA - S/S Silos, Tanks, Bottle Filling, 2011 Case Erectors, More
HARRY www.harrydavis.com Asset Solutions
DAVIS
& COMPANY
412-765-1170
[email protected]
Experts Since 1955
For more information please visit www.harrydavis.com
Reprinted with permission from the June 13, 2014, edition of CHEESE MARKET NEWS®© Copyright 2014 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
14
CHEESE MARKET NEWS® — June 13, 2014
CLASSIFIED ADVERTISING
•
EQUIPMENT
1
•
EQUIPMENT
1
•
CHEESE/DAIRY
12
WANTED
TO BUY
• Under Grade Dairy Powders or
Blends for Feed
• Will Purchase Retained
Sample Bags
• Will Purchase Whirl-Pak Bags
• No Quantity Too Large or Too Small
John Davis
[email protected]
(920) 878-0688
Codie Wegener
[email protected]
(920) 422-4767
For more information please visit www.ullmers-dairyequipment.com
Separator Restorations, LLC
‡%RZO5HSDLU%DODQFLQJ
‡0DFKLQH5HEXLOGLQJ&RPSRQHQW5HSDLU
‡,QSODQW6HUYLFH
‡<HDUVRI([SHULHQFH
Mark Meyers
VHSUHVWRUH#RXWORRNFRP
Call today;
HAVING SEPARATOR PROBLEMS?
Need an independent view of what is wrong and
how to correct it? Need operator training? Put
my 46+ years of dairy experience working with
all makes and models to work for you.
ĂůůĨŽƌĂŶŝŶŝƟĂůĐŽŶƐƵůƚĂƟŽŶ
ĂŶĚĞƐƟŵĂƚĞƚŽĚĂLJ͘
ZZZVHSUHVWRUHFRP
ĂǀĞ:ŽŚŶƐŽŶ͕KǁŶĞƌͻϲϱϭ͘ϮϲϮ͘ϳϴϵϴ
ƐĞƉĂƌĂƚŽƌĐŽŶƐƵůƟŶŐƐĞƌǀŝĐĞƐΛŐŵĂŝů͘ĐŽŵ
For more information please e-mail
[email protected]
For more information please
visit www.seprestore.com
For more information please
visit www.mandjsalesllc.com
GOT CHEESE?
^ĞƉĂƌĂƚŽƌŽŶƐƵůƟŶŐ^ĞƌǀŝĐĞƐ
3UHFLVLRQYDOXHDQGWHFKQLFDO
VXSSRUWHYHU\VWHSRIWKHZD\
we build lasting
partnerships!
We purchase scrap cheese
cheese
(fish
floor sweeps,
sweeps,etc.)
etc.)
(fish bait, floor
for feed. We
We can
can pick
pick up
up on
on aa
spot, weekly
weekly or
or monthly
monthly basis.
basis.
Please contact:
•
PLANTS: SALE/LEASE 5
•
PLANTS: WANTED
6
•
HELP WANTED
•
HELP WANTED
7
7
Milk Marketing Manager
[email protected]
(866) 547-6510
www.whalenfoodsinc.com
Seeking an experienced Dairy Professional with a track record of
success in both the sourcing and sale of raw milk.
For more information please
visit www.whalenfoodsinc.com
Grande® is a leader in the Dairy Industry with over 70 years of growth
and success. Due to a recent opening, you have the opportunity to join
this premier organization and take charge of both the sourcing and
sales of raw milk deemed necessary in supplying our cheese plants.
For more information and
to submit your qualifications
please apply online at
www.grande.com/careers
For more information please visit www.grande.com/careers
•
STORAGE
13
•
STORAGE
13
WAREHOUSE SPACE AVAILABLE:
9,500 square feet of all-temperature freezer boxes 11.5 feet high available.
7KHUHLVµRISRO\XUHWKDQHRQWKHZDOOVFHLOLQJDQGÁRRU
/RFDWHGRQÀYHORWVRQWK$YHQXHRQHRIWZRHQWUDQFHH[LWVWUHHWVIRU
Interstate 10 in downtown Phoenix is three blocks north of the warehouse.
BIG REWARD OFFERED
FOR YOUR...
• Cheese Trim • Cheese Fines
• #1 and Undergrades
• Close Coded Products
• Natural, Processed,
Imitation or Flavored
Call Dean, Eric or Pat:
(877) 914-5400
horizonsalesinc.com
/RWVRIWUDIÀF*UHDWIRUUHWDLOVWRUDJHDQGRUGLVWULEXWLRQ7KHZDUHhouse is located on four lots. The corner lot holds two 1916 houses in
great condition.
For an information packet, call Bill at 602.448.6198.
For more information please call 602-448-6198
For more information please
visit www.horizonsalesinc.com
Mintel says 29.2
million post food
and drink photos
to social media
CHICAGO — New Mintel research
shows that posting food photos online
has gone beyond a few fringe foodies
and is infiltrating the mainstream.
Thirteen percent of those who have
dined out in the past month and use
social media have posted a food or
drink picture to social media, which
equates to approximately 29.2 million
hungry amateur food photographers. To
put that into context, consider that 14
percent of networkers said they posted
on social media about any purchase,
and only 39 percent of social media
users report posting their own updates
at least a few times a week.
Fourteen percent have posted a
positive comment on a brand’s social
media page and 28 percent indicate
they would stay longer at restaurants if
charging stations for electronic devices
were available for their phones. However, only 17 percent of respondents are
influenced by a positive review to eat
at a certain establishment, Mintel says.
Mintel research suggests that combining traditional loyalty programs
with today’s technology may be the
best bet. The majority of respondents
(69 percent) indicate they prefer loyalty programs that issue points toward
future purchases. Yet despite a stated
preference for loyalty programs, 42
percent say that loyalty programs that
track ordering habits make them feel
like they’re being watched.
“Brands must walk the fine line of
providing enough value to customers in
exchange for their information,” says
Bethany Wall, foodservice analyst, Mintel. “Mobile apps and other technologies
by operators and third parties have
made it easier than ever for consumers
to find information such as nutrition and
locations, make reservations, order, pay,
leave reviews and feedback, and participate in loyalty programs. In return for
these conveniences, restaurants can use
these apps to collect great amounts of
information that can be mined in order
to determine the best way to reach and
communicate with consumers.”
Buy one get one free deals are still
the most preferred type of deal (46
percent), followed by value meals/dollar menus (33 percent). Men are more
swayed than women by free Wi-Fi (31
percent to 27 percent) and a big screen
TV (20 percent to 15 percent), whereas
women prefer loyalty cards (42 percent
to 31 percent) and an at-table tablet to
ask for food, refills and extra napkins
(21 percent to 19 percent).
“Technology is playing an increasingly important role in the restaurant
space,” Wall says. “The key is to be
unique, responsive and creative and
to provide a benefit that exceeds the
hesitation of the customer. Getting them
in the door is just first step, but keeping
them coming back is the real key.” CMN
Reprinted with permission from the June 13, 2014, edition of CHEESE MARKET NEWS®© Copyright 2014 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
June 13, 2014 — CHEESE MARKET NEWS®
15
NEWS/BUSINESS
BREAKFAST
Continued from page 1
breakfast as one of the top reasons both
during the week and on the weekend.
• Innovating with cheese
Increased focus on breakfast items
has translated into increased opportunities for the cheese and dairy industry,
as cheese is a main component of many
breakfast items.
“Behind eggs, cheese is the second
most popular ingredient found on breakfast menus. As a highly ubiquitous item,
cheese is included on almost all of the
most common breakfast items: egg dishes
or breakfast sandwiches,” says Chris
LaJoie, customer marketing analyst,
Schreiber Foods.
“Over the past year or so, we’ve
been excited by the innovation we’re
seeing on breakfast menus,” he adds.
“Restaurants are breaking away from
the typically breakfast dishes and menuing new and unique foods and flavors.
In almost every case, cheese plays an
important role, adding a craveable,
desired element.”
The Innovation Center for U.S. Dairy,
supported by the checkoff-funded Dairy
Management Inc. (DMI), last spring conducted a “Breakfast Lab” which gathered
experts from chefs and cookbook authors
to registered dieticians, foodservice directors and dairy industry representatives.
The project’s goal was to expand dairy
options at breakfast and customize nutritious menu solutions for quick-service
restaurant and school channel needs that
taste good and are cost effective.
“We came up with 20 different exciting concepts to meet these needs,”
says Geri Berdak, senior vice president of health and wellness, DMI.
“We worked with the industry to show
these concepts and get companies interested in making these come to life.
We’re also offering some of these products
and recipes in schools and working with
foodservice directors.”
Through its strategic partnerships,
DMI also has worked with restaurants
such as McDonald’s and Taco Bell to incorporate cheese and dairy in new menu
innovations, including some of the items
Taco Bell rolled out in its recent breakfast
launch. DMI shares consumer and market
insights, such as the Breakfast Lab work,
as well as product and nutrition research
with its restaurant partners.
“We also have dairy scientists on-site
to share information and expertise,”
Berdak says. “Through this partnership
we’re able to contribute to the development of new menu offerings and future
concepts yet to be released.”
Among the Breakfast Lab concepts for
schools and restaurants were a breakfast
taco or breakfast pizza that could include
cheese in savory versions or yogurt in
sweet versions, a handheld pop tart or
filled breakfast pastry that also could be
either savory or sweet, and breakfast mac
and cheese, which capitalizes on a new
“lunch for breakfast” trend.
“One evolution of breakfast menus
we have been acutely watching has been
the addition of more ‘p.m. formats’ on
breakfast menus,” Schreiber’s LaJoie
says. “For example, breakfast pizzas
and flatbreads, French fries — poutine variations with cheese, bacon and
eggs — and even burgers are being
included more frequently on breakfast
menus lately.”
Another breakfast trend the industry
is taking note of is increased awareness
of protein sources and consumers’ desire
to feel fuller throughout the day.
“From the dairy point of view, that’s an
opportunity for us. We look at parameters
for something convenient, tasty and fun,
and protein sources can be limited. But
dairy is so versatile — a flexible, natural
source of protein,” Berdak says, pointing to recent data showing 50 percent
of consumers are looking to add more
protein to their diets.
In its breakfast report, Technomic
notes that younger consumers in particular show interest in alternative breakfast
proteins. More than a fifth of consumers
would like restaurants to offer more
turkey and chicken-based substitutes,
and 17 percent says the same for plantbased substitutes.
Jim Jirschele, vice president of
foodservice for Masters Gallery Foods,
says as menu items have seen more of a
trend away from pork products and toward turkey and other healthy offerings,
there is more of a demand for reduced-fat
Cheddar and other cheeses. However,
consumers still want cheeses that are
full-flavored.
“Without question
there has been an
increase in demand
for specialty and
high-flavor profile
cheeses.”
Chris LaJoie
SCHREIBER FOODS
• Flavorful varieties
While many limited-service restaurants and quick weekday breakfast items
contain traditional processed American
or Cheddar cheeses, specialty and fullerflavored cheeses such as smoked varieties
and Pepper Jack are growing in demand.
“Pepper Jacks and Habanero seem
popular, as well as smoky Cheddars,”
Jirschele says. “You can throw bacon in
for a smoky Cheddar bacon, and throw
it on an egg sandwich.”
He adds that many quick-service
restaurants don’t use natural or specialty
cheeses for breakfast items due to the
cost, but these cheeses can be seen more
on limited-time offerings and more fullservice restaurants.
Monnette says the leading cheese on
breakfast sandwiches still is Cheddar,
followed by American cheese. There is
a tie between Asiago and Swiss next,
but these have much smaller visibility
on limited-service menus.
“Fast casual players can do really
well with these and have more leeway
to offer unique, upscale offerings,” she
says. “They can charge a higher price
point to justify the level of ingredients
they’re using.”
In addition to American and Cheddar, LaJoie says other popular variet-
ies Schreiber has seen include Swiss,
Mozzarella and Feta, due to an increase
in Mediterranean-flavored dishes on
menus.
“Without question there has been
an increase in demand for specialty
and high-flavor profile cheeses. Some
of the fastest-growing cheese varieties
on menus over the past four years include Cotija, Pecorino and goat cheese/
Chevre,” LaJoie says.
“You’re more likely to find a wider
variety of cheese types used on weekend
breakfast occasions as consumers are
eating omelets or skillets with crumbled
cheeses or more unique dishes with
cheese as an ingredient,” he adds, using
Cheddar waffles or goat cheese grits as
examples.
There is space for restaurants to grow
sales through offering novel, convenient
and full-flavored breakfast items for both
kids and adults. In its Breakfast Lab, the
Innovation Center for U.S. Dairy notes
that of the 50 top chains that offer kids
menus, only 20 percent offer breakfast
items.
According to Technomic, breakfast
still tends to be sourced largely from
home. Only 20 percent of consumers
say they are eating breakfast away from
home more often now than they were
one year ago. However, increased options
may draw people out for breakfast. The
report says that more limited-service
restaurant patrons are saying value
menus, breakfast sandwiches and portability are important, while variety,
all-day breakfast and signature items
are particularly important at full-service
restaurants.
“As the economy is improving and
more consumers are working, we
see portability and the convenience
of getting breakfast on the way to
work or school as something that will
increase,” Monnette says.
CMN
Products. Customer service. Industry expertise.
We deliver.
Safety & Personnel
Sanitation & Janitorial
Production & Material Handling
Nelson-Jameson unveils new Buyers Guide
MARSHFIELD, Wis. — NelsonJameson Inc. recently announced the
release of the 2014-15 edition of its
Buyers Guide.
Nelson-Jameson says the new edition includes more than 50 additional
pages of new and innovative products for
the food and dairy industries including
expanded offerings in the color-coded
and metal detectable product lines.
Easy-to-use “How to Order” boxes,
terminology and other guides were expanded to help provide customers with a
one-stop source to find the right product
for their applications, the company says.
A newly-designed color-coded insert
also includes eight additional pages of
products to expand Nelson-Jameson’s
already extensive color-coded offerings, the company adds. In an effort
to give customers even more options,
Nelson-Jameson now has many more
color-coded products available in pink.
The catalog offers many hard-to-find
and specialty products exclusive to
Nelson-Jameson, as well as hundreds
of supply items used daily, the company
says.
Customers may request a free
copy of the Nelson-Jameson Buyers
Guide by calling 800-826-8302 or
visiting nelsonjameson.com. CMN
Processing & Flow Control
Laboratory & QA/QC
Packaging & Ingredients
Request your FREE copy
of our NEW catalog today!
Products. Customer service. Industry expertise. We deliver.
www.nelsonjameson.com • 1-800-826-8302
For more information please visit www.nelsonjameson.com
Reprinted with permission from the June 13, 2014, edition of CHEESE MARKET NEWS®© Copyright 2014 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
16
CHEESE MARKET NEWS® — June 13, 2014
NEWS/BUSINESS
U.S. dairy product export value reaches $688.5 million in April, up 26 percent over year ago
WASHINGTON — The value of all U.S.
dairy product exports in April was $688.5
million, up 26 percent from a year earlier, according to the latest report and
data from the U.S. Dairy Export Council
(USDEC) and USDA. Dairy exports in
April remained strong, coming in slightly
below the record volume and value levels
established in March, USDEC says. U.S.
suppliers shipped 406.8 million pounds
of milk powders, cheese, butterfat, whey
and lactose in April, up 8 percent from
last year. (The figures released by USDA
and USDEC are in metric tons; Cheese
Market News has converted the data to
pounds by multiplying by 2,204.6.)
USDEC notes that nearly two-thirds
of U.S. dairy exports in April went to the
top four customers: Southeast Asia (up
17 percent vs. a year ago), Mexico (up 12
percent), Middle East/North Africa (up
52 percent) and China (up 32 percent).
Cheese exports in April totaled 74.4
million pounds, slightly down from
March’s record level but still the secondhighest figure ever and 32 percent higher
than last year. January-April cheese
exports totaled 293.9 million pounds,
up 39 percent from the same period last
year. In April, cheese sales to South Korea
and Japan exceeded sales to Mexico,
which typically is the largest U.S. cheese
customer, USDEC says.
Exports of nonfat dry milk/skim milk
powder (NDM/SMP) reached 117.2 million pounds in April, down 4 percent
from a year ago but still among the highest ever, USDEC reports. Year-to-date
NDM/SMP exports totaled 396.2 million
pounds through April, up 11 percent from
the same period last year.
Whey exports totaled 99.9 million
pounds in April, up 9 percent from a
year ago and the third-highest figure
ever on a daily-average basis, USDEC
says. Sweet whey was up 14 percent from
last April, whey protein concentrate was
up 3 percent and whey protein isolate
was up 31 percent. January-April total
whey exports reached 376.0 million
pounds, up 11 percent from the first four
months of 2013.
Butterfat exports in April were 19.2
million pounds, the lowest since last
June, but still more than double what
they were a year ago. Lactose exports
fell in April after reaching record levels
in March. These totaled 57.2 million
pounds, down 12 percent from April 2013.
U.S. exports on a total milk solids
basis were equivalent to 16.9 percent
of U.S. milk solids production in April.
Imports were equivalent to 3.0 percent
of production, USDEC reports. CMN
GMO
Continued from page 1
June Dairy Month-themed ads abundant, according to retail report
WASHINGTON — June Dairy Monththemed ads are in abundance this survey
period, according to the latest National
Dairy Retail Report released by USDA’s
Agricultural Marketing Service (AMS)
this week.
AMS says natural varieties of national conventional cheese in 8-ounce
blocks this week had a weighted average advertised price of $2.62, up from
$2.44 two weeks earlier and $2.31 one
year ago. Natural varieties of 1-pound
cheese blocks had a weighted average
advertised price of $4.05, down from
$4.32 two weeks earlier and $4.51 one
year earlier, while 2-pound blocks had
a weighted average advertised price
of $7.10, down from $7.55 two weeks
earlier but up from $5.78 one year ago.
Natural varieties of 8-ounce cheese
shreds this week had a weighted average advertised price of $2.57, up from
$2.37 two weeks earlier and $2.32 one
year earlier, while 1-pound shreds had
a weighted average advertised price of
$3.73, up from $3.42 two weeks earlier
but down from $4.09 one year earlier,
AMS says.
Meanwhile, AMS says national conventional butter in 1-pound packs this
week had a weighted average advertised
price of $3.24, up from $3.14 two weeks
earlier and $2.97 one year ago. CMN
WASDE
2015 price forecast to $1.640-$1.770, up
from $1.615-$1.745 in last month’s report.
Meanwhile, the mid-point in the
NDM price forecast range for 2014 is
lowered slightly from $1.830-$1.860 last
month to $1.820-$1.860 in this month’s
report. The 2015 NDM price forecast is
unchanged at $1.605-$1.675.
The dry whey price forecast is unchanged at $0.630-$0.650 for this year
and $0.550-$0.580 in 2015.
The 2014 Class III price forecast is
$20.80-$21.20 per hundredweight, up
from last month’s forecast of $20.55-
$20.85. The 2015 Class III price is
forecast to average $16.95-$17.95, up
from $16.90-$17.90 last month.
The 2014 Class IV price is forecast to
average $21.45-$21.95, up from $21.25$21.65 last month. The 2015 Class IV
price is forecast to average $18.65$19.75, up from $18.55-$19.65 last month.
USDA forecasts the 2014 all-milk
price will be in the $22.90-$23.30 range,
up from last month’s forecast of $22.70$23.00. The 2015 all-milk price is forecast
to average $19.75-$20.75, up from $19.70$20.70 in last month’s report. CMN
Continued from page 1
USDA forecasts the cheese price will
average $2.015-$2.055 per pound in 2014,
up from its forecast of $1.995-$2.025 in last
month’s report. The 2015 cheese price forecast range is unchanged at $1.670-$1.770.
The 2014 butter price forecast is increased to $1.870-$1.940, up from $1.800$1.860 in last month’s report. Strength
in butter prices is expected to carry into
early 2015 resulting in an increase in the
More News, More Solutions,
More Choices!
… Yes,
please send me
the Exclusive
2014 Key Players
Reprint for
only $30!
(Credit Card or Prepayment Only)
CHEESE MARKET NEWS ® SUBSCRIPTION FORM:
1 Year Rates (52 issues)
2 Year Rates (104 issues)
F $135 (2nd Class) F $190 (1st Class/Canada)
F $330 (International)
F $195 (2nd Class) F $315 (1st Class/Canada) F $135 (Email Only. Without Mail Service)
F $525 (International)
F $210 (Email With 2nd Class Mail Service Only)
ELECTRONIC 1 Year Rates (52 issues)
<RXUVXEVFULSWLRQZLOOEHDXWRPDWLFDOO\UHQHZHGDQQXDOO\DWRXUUHQHZDOSULFHVWKHQLQHIIHFW$ELOOZLOOEHPDLOHGLIDFUHGLWFDUGLVQ¶WDYDLODEOH<RXZLOOEHQRWL¿HGLQDGYDQFH
of any price increase. Cancel anytime for a 100% refund on unmailed copies by emailing your request to: [email protected]
F Please contact me for complete advertising details
NAME: ____________________________________________________
TITLE: ____________________________________________________
COMPANY: ________________________________________________
METHOD OF PAYMENT (U.S. Funds Only):
FBill Me FPAYMENT Enclosed
FPayment by Credit Card
FVISA FMasterCard FAmerican Express
ADDRESS: ________________________________________________
CARD NUMBER: ___________________________________________
CITY: _________________________ STATE: ____ ZIP: ___________
EXPIRATION DATE: ________________________________________
PHONE: (______) _____________________ DATE: _______________
SECURITY CODE: _________________________________________
* EMAIL (Required): _________________________________________
SIGNATURE: ______________________________________________
For immediate service, call (608) 831-6002, email [email protected] or fax your subscription to (608) 831-1004.
SUBSCRIBER SERVICES • P.O. Box 628254 • Middleton, Wisconsin 53562
E-mail: [email protected] • Website: www.cheesemarketnews.com
For more information please visit www.cheesemarketnews.com/order.html
signed in early May by Vermont Gov.
Peter Shumlin, is the first in the country
that will unconditionally require the
labeling of foods that contain genetically
modified ingredients (GMOs) or that are
produced with genetic engineering. Connecticut and Maine have passed GMO
labeling laws as well, but these states
have delayed implementation until at
least four other adjoining states pass
and implement similar laws. Vermont’s
law is set to take effect July 1, 2016. (See
“Vt. governor signs GMO labeling bill,
braces for lawsuits” in the May 9, 2014,
issue of Cheese Market News.)
IDFA says that while the Vermont
law exempts processing aids and milk
from cows that have been fed GMO feed,
many dairy products and other foods
that incorporate milk will be affected
by the law unless they are made with
organic ingredients.
In conjunction with the legal filing
this week, GMA issues a statement saying Vermont’s GMO labeling law — Act
120 — exceeds the state’s authority
under the U.S. Constitution.
“Act 120 imposes burdensome new
speech requirements — and restrictions — that will affect, by Vermont’s
count, eight out of every ten foods at
the grocery store. Yet Vermont has effectively conceded this law has no basis
in health, safety or science. That is why
a number of product categories, including milk, meat, restaurant items and
alcohol, are exempt from the law. This
means that many foods containing GMO
ingredients will not actually disclose
that fact,” the GMA statement says.
“The First Amendment dictates that
when speech is involved, Vermont policymakers cannot merely act as a passthrough for the fads and controversies of
the day. It must point to a truly ‘governmental’ interest, not a political one. And
the Constitution prohibits Vermont from
regulating nationwide distribution and labeling practices that facilitate interstate
commerce. That is the sole province of the
federal government,” GMA says, adding
that FDA, USDA and the Environmental
Protection Agencies are the ones with the
mandate and expertise to incorporate the
views of all the stakeholders at each link
in the food chain from farm to fork. CMN
Reprinted with permission from the June 13, 2014, edition of CHEESE MARKET NEWS®© Copyright 2014 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com