news/business - Cheese Market News
Transcription
news/business - Cheese Market News
Scan this code for breaking news and the latest markets! A INSIDE Guest column: ‘Mired in wash water.’ For details, see page 4. Guest column: George Hutson retires from Filtration Engineering, Todd Hutson takes helm. For details, see page 9. Report looks at raw milk cheesemaking. For details, see page 13. Dairy products may help prevent mental decline. For details, see page 16. Experts discuss global dairy markets, policy implications By Alyssa Sowerwine CHICAGO — Food, agriculture and dairy industry experts discussed dairy policy reform, global economic issues, weather patterns and the outlook for dairy prices and global food demand last week during the 2012 FCStone Outlook Conference. FCStone LLC hosts the conference to help investors, producers, processors and end user of food commodities foresee global supply and demand issues, and in the process, help them prepare for and protect against the risks of price fluctuations. Robert Chesler, vice president of the Food Service CMAB aims to build demand abroad for California dairy By Alyssa Sowerwine SOUTH SAN FRANCISCO, Calif. — As the dairy industry moves toward an increasingly global marketplace, one organization is working to build demand for California dairy products in other countries to provide cheesemakers with more opportunities for their products. The California Milk Advisory Board (CMAB) — which was formed in 1969 to promote California dairy products — is one of the largest commodity boards in the United States that executes advertising, public relations, research, and retail and foodservice promotional programs on behalf of California dairy products, including Real California Milk and Real California Cheese. CMAB currently is focusing on two different regions to build international demand for California dairy: Mexico and Asia. David Freedheim, sales consultant, CMAB, notes that in the past five years, about two-thirds of all of the new milk in California has been exported. While there have been California dairy products in the Mexico region for awhile, just in the past month or so, CMAB has been helping to get an extended shelf life milk product into Mexico, Freedheim says. “It has a shelf life of 85 days, and it’s California standard milk, so it’s a higher quality than most products sold there,” he says. Freedheim notes that with such an abundant milk supply in California, the state’s dairy farmers and processors have a great deal of product that can benefit from sales both domestically and abroad. He notes that CMAB also has gotten a lot of California cheese into Mexico, as well as ice cream, and is in discussions to add butter, cottage cheese and sour cream to the product offerings. All products carry the Real California Milk or Cheese seal, he adds, so people know where the product comes from. Freedheim notes it provides a great opportunity for California manufacturers who are interested in international markets. Turn to CMAB, page 24 Division at FCStone LLC, presented the “Dairy Market Outlook” during the conference. Chesler began with an overview of current events and influence facing the global dairy industry, such as the collapse of the European economy; record unemployment and political instability in Greece; increasing warm temperatures and dry conditions in the United States, which are keeping grain prices elevated; an expanding Chinese economy; and oil prices. • Global outlook Chesler notes that China has grown to be the largest single dairy importing country in the world, with more than US$3.8 billion worth of product imported in 2011. He adds that although whole milk powder imports to China decreased in 2011, total dairy imports were up 20 percent compared to 2010. In Europe, milk is forecast to rise slightly in 2012 with growth around 1.3 percent, Chesler says. He notes that although European weather conditions have been favorable to date, cuts to farm gate prices and rising costs are expected to dampen growth over the remainder of 2012. He adds that cheese and butterfat export volumes from Europe fell 14 percent and 31 percent, respectively, in 2011. In Oceania, milk production in New Zealand is expected to close the 2011/12 season with gains between 8 and 10 percent over last year — “well above expectations,” Chesler says. “Reasonable farm gate prices combined with excellent seasonal conditions have combined to boost milk output,” he says. In Australia, the milk production forecast for 2012/13 is up 2 percent based on herd growth intentions and normal seasonal conditions, Chesler notes. However, the Australian domestic market’s share of total industry milk production will slip a little below 55 percent in 2011/12 due to the strong increase in milk production, he adds. • U.S. production, price forecasts Meanwhile, “looking domestically, one of the main things we need to focus on is feed prices” in the United States, Chesler says. He notes that there has been a high slaughter rate of cows due to higher feed prices earlier in the year. However, those slaughtered cows are being replaced with other, stronger cows, creating greater production efficiencies overall, he says. “It’s expensive to feed an animal with high grain pries, and when an animal is not producing to its full potential, it gets culled,” he says. He notes there is a competitive advantage for dairy producers who produce their own feed. Chesler also provided an overview of price projections for milk production and dairy prices in 2012 and 2013, also comparing FCStone’s projections to current USDA estimates in some of these areas. U.S. milk production reached 196.2 billion pounds in 2011, and is projected to reach 202.2 billion pounds in 2012, according to USDA. However, Chesler notes FCStone projects 200.8 billion pounds of milk in 2012, lower than USDA’s forecast. Conversely, in 2013, USDA estimates milk production will reach 202.6 billion pounds, while FCStone forecasts Turn to FCSTONE, page 18 U.S. House releases draft of bipartisan FARRM bill Cheese output in May is slightly up from 1 year ago WASHINGTON — U.S. House Chairman Frank Lucas, R-Okla., and Ranking Member Collin Peterson, D-Minn., yesterday released a discussion draft of the Federal Agriculture Reform and Risk Management Act (FARRM). The bipartisan FARRM is the product of a two-year process that examined every policy under the jurisdiction of the House Committee on Agriculture and makes reforms to agricultural policy. “Our efforts over the past two years have resulted in reformminded, fiscally-responsible policy that is equitable for farmers and ranchers in all regions and will lead to improved program delivery,” Lucas says. “This bill is an investment in production agriculture and rural America.” Peterson says Congress needs to complete work on the 2012 Farm Bill before the current bill expires, otherwise it will WASHINGTON — Total U.S. cheese output, excluding cottage cheese, was 915.8 million pounds in May, 0.4 percent above May 2011 and 1.4 percent above April 2012, according to data released this week by USDA’s National Agricultural Statistics Service (NASS). (All figures are rounded. Please see CMN’s Dairy Production chart on page 19.) May Turn to FARRM, page 19 Turn to OUTPUT, page 19 Reprinted with permission from the July 6, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 2 CHEESE MARKET NEWS® — July 6, 2012 MARKET INDICATORS DRY WHEY FUTURES for the week ended July 5, 2012 Chicago Mercantile Exchange (Listings for each day by month, settling price and open interest) Cash prices for the week ended June 6, 2012 Monday July 2 Tuesday July 3 $1.6750 NC $1.6750 NC Cheese 40-lb. block Price $1.6400 Change -1 $1.6400 NC Cheese Barrels Price Change Wednesday July 4 Markets Closed Thursday July 5 Friday July 6 $1.6750 NC $1.6750 NC $1.6400 NC $1.6400 NC Weekly average (July 2-6): Barrels: $1.6750(+.0030); 40-lb. Blocks: $1.6400(-.0090). Weekly ave. one year ago (July 5-8, 2011) Barrels: $2.1019; 40-lb. Blocks: $2.1131. Extra Grade NDM $1.1950 Price NC Change $1.1950 NC Grade A NDM Price Change $1.2275 NC 50.50 51.25 53.00 53.70 53.75 54.50 53.50 46.28 42.00 41.00 38.53 40.25 446 313 262 320 282 245 244 8 3 3 2 1 $1.2275 NC Markets Closed $1.1950 NC $1.1950 NC $1.2275 NC $1.2275 NC $1.5275 NC $1.5275 NC Markets Closed $1.5275 NC $1.5325 +1/2 Sign up for our daily fax or e-mail service for just $104 a year. Call us at 608-288-9090. Weekly Cold Storage Holdings On hand Monday Week Change 11,975 131,244 -41 +2,060 July 2, 2012 Change since July 1 Pounds Percent -8 +412 NC NC Last Year Pounds Change 9,185 129,266 +2,790 +1,978 (These data, which includes government stocks and is 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.) 12.20 14.18 17.03 9.31 14.28 17.00 16.06 11.11 15.09 18.00 10.44 12.78 19.40 15.72 3/2,130 Thurs., July 5 446 312 262 320 284 245 243 8 3 3 2 1 50.13 52.00 54.00 55.00 55.25 54.50 52.75 47.03 43.03 42.53 40.10 46.00 419 311 271 311 282 247 243 8 3 3 2 1 49/2,101 2/2,129 Class III: Price Skim Price Class IV: Price Skim Price Class II: Price Butterfat Price Component Prices: Butterfat Price Nonfat Solids Price Protein Price Other Solids Price Somatic Cell Adjustment Rate Product Price Averages: Butter Nonfat Dry Milk Cheese Dry Whey 10.93 16.09 16.76 10.78 12.92 16.87 15.72 10.83 17.60 18.18 9.84 13.38 16.52 15.23 11.29 20.17 20.25 9.97 13.62 19.11 15.63 STAFF Susan Quarne, (PH 608/831-6002; FAX 608/831-1004) e-mail: [email protected] Kate Sander, (PH 509/962-4026; FAX 509/962-4027) e-mail: [email protected] Alyssa Sowerwine, (PH 608/288-9090; FAX 608/288-9093) e-mail: [email protected] Rena Archwamety, (PH 608/288-9090; FAX 608/288-9093) e-mail: [email protected] Aaron Martin, (PH 608/288-9090; FAX 608/288-9093) e-mail: [email protected] 10.92 21.38 18.24 9.97 13.74 21.39 June 2012 May 2012 $ 15.63/cwt. $ 10.81/cwt. $ 15.23/cwt. $ 10.54/cwt. $ 13.24/cwt. $ 8.33/cwt. $ 13.55/cwt. $ 8.80/cwt. $ 14.32/cwt. $ 1.4936/lb. $ 15.19/cwt. $ 1.4532/lb. $ $ $ $ $ 1.4866/lb. 0.9252/lb. 2.8952/lb. 0.3113/lb. 0.00079/1,000 scc $ $ $ $ $ 1.4462/lb. 0.9774/lb. 2.7344/lb. 0.3500/lb. 0.00076/1,000 scc $ $ $ $ 1.3991/lb. 1.1023/lb. 1.5846/lb. 0.5013/lb. $ $ $ $ 1.3657/lb. 1.1551/lb. 1.5215/lb. 0.5389/lb. Dry Products* (Dollars per hundredweight, 3.5% butterfat test) YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 13.39 13.56 19.32 10.78 14.50 13.48 17.05 50.50 51.25 52.50 53.68 53.10 53.25 52.75 46.28 42.00 41.50 39.00 44.25 Wed., July 4 Class & Component Prices CLASS III PRICE 2006 2007 2008 2009 2010 2011 2012 446 313 262 320 284 245 243 8 3 3 2 1 50.50 51.25 53.00 53.68 53.10 53.98 53.88 46.28 42.00 41.25 38.53 40.25 Tues., July 3 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. Weekly average (July 2-6): Grade AA: $1.5288(+.0073). Class II Cream (Major Northeast Cities): $1.8714(-.2476)–$2.1605(+.0660). Butter Cheese JUN12 JUL12 AUG12 SEP12 OCT12 NOV12 DEC12 JAN13 FEB13 MAR13 APR13 MAY 13 Mon., July 2 Total Contracts Traded/ Open Interest 17/2,129 Weekly average (July 2-6): Extra Grade: $1.1950(+.0020); Grade A: $1.2275(NC). Grade AA Butter Price Change Fri., June 29 11.06 19.83 17.32 11.20 15.18 21.67 12.29 20.07 16.28 12.11 16.26 19.07 12.32 18.70 17.06 12.82 16.94 18.03 12.84 19.22 15.51 14.08 15.44 19.07 13.47 20.60 15.28 14.98 13.83 18.77 SUBSCRIPTION INFORMATION July 6, 2012 NONFAT DRY MILK Central & East: low/medium heat $1.1800(+2)-$1.3000(+4); mostly $1.1850-$1.2400(+1). high heat $1.2300(+1)-$1.3600. West: low/medium heat $1.1050(-1 1/2)-$1.3000; mostly $1.1400-$1.2200. high heat $1.1650-$1.3300(+3). Calif. manufacturing plants: extra grade/grade A weighted ave. $1.0282(-.0473) based on 40,078,216 lbs. Sales to CCC: 0 lbs. WHOLE MILK POWDER (National): $1.3700-$1.5000. EDIBLE LACTOSE (FOB)Central and West: $.7500-$1.0150; mostly $.8200-$.9200. POSTMASTER: 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. DRY WHEY Central: West: (FOB) Northeast: nonhygroscopic $.4000-$.5575; mostly $.4200-$.5300. nonhygroscopic $.4650(+1/2)-$.5200(-3/4); mostly $.4650(+1/2)-$.5150. extra grade/grade A $.4800(-1/2)-$.5425(-1 1/2). ANIMAL FEED (Central): Whey spray milk replacer $.3575-$.4775. REGULAR CONTRIBUTORS WHEY PROTEIN CONCENTRATE (34 percent): $.9000-$1.3450; mostly $1.1000-$1.2375. SUBSCRIPTIONS & BUSINESS STAFF DRY BUTTERMILK (FOB)Central & East: $.9900-$1.1500. (FOB) West: $1.0500(+4)-$1.1700; mostly $1.0700-$1.1100. John Umhoefer, Downes-O'Neill LLC, International Dairy Foods Association, National Milk Producers Federation Subscription/advertising rates available upon request Contact: Susan Quarne - Publisher P.O. Box 628254, Middleton, WI 53562 PHONE 608/831-6002 • FAX 608/831-1004 Subscriptions: WEBSITE: www.cheesemarketnews.com CASEIN: Rennet $3.7500(-20)-$4.4000(-30); Acid $4.1500(-15)-$4.7000(-20). *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 July 6, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com July 6, 2012 — CHEESE MARKET NEWS® 3 MARKET INDICATORS CHEESE FUTURES for the week ended July 5, 2012 International Dairy Markets (Listings for each day by month, settling price and open interest) Fri., June 29 JUN12 JUL12 AUG12 SEP12 OCT12 NOV12 DEC12 JAN13 FEB13 MAR13 APR13 1.577 1.702 1.762 1.770 1.760 1.733 1.720 1.710 1.693 1.666 1.676 1,771 1,421 1,334 1,317 1,059 1,068 1,069 147 40 14 9 Mon., July 2 1,771 1,421 1,341 1,314 1,061 1,079 1,083 147 40 14 9 1.577 1.671 1.732 1.760 1.762 1.740 1.720 1.710 1.696 1.690 1.676 Total Contracts Traded/ 107/9,249 Open Interest Tues., July 3 Wed., July 4 1,771 1,407 1,341 1,315 1,062 1,079 1,083 147 40 14 9 1.577 1.677 1.730 1.756 1.750 1.740 1.720 1.710 1.696 1.690 1.676 81/9,280 Thurs., July 5* 1.585 1.688 1.756 1.781 1.775 1.748 1.737 1.711 1.705 1.696 1.689 1,785 1,397 1,336 1,310 1,067 1,090 1,093 147 40 14 9 156/9,289 27/9,268 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. *Total Contracts Traded/Open Interest reflect an additional month not included in this chart. Western and Eastern Europe Butter: 82 percent butterfat $3,350(+50)-$3,650(+50); 99 percent butterfat $4,000(+50)-$4,275(+50). Skim Milk Powder: 1.25 percent butterfat $2,650(+100)-$2,900. Whole Milk Powder: 26 percent butterfat $3,075(+100)-$3,275(-175). Whey Powder: Nonhygroscopic $1,125(-50)-$1,250(-25). Oceania Butter: 82 percent butterfat $2,700(-50)-$3,000(-250). Cheddar Cheese: 39 percent maximum moisture $3,100-$4,100. Skim Milk Powder: 1.25 percent butterfat $2,550(-100)-$3,200. Whole Milk Powder: 26 percent butterfat $2,850(+150)-$3,050(+50). * Source: Dairy Market News. Prices reported in U.S. dollars per metric ton, F.O.B. port. To convert to price per pound: divide price by 2,204.6 pounds. CME FUTURES for the week ended July 5, 2012 National Dairy Products Sales Report Class III Milk # JUN12 JUL12 AUG12 SEP12 OCT12 NOV12 DEC12 JAN13 FEB13 MAR13 APR13 MAY13 JUN13 JUL13 AUG13 SEP13 OCT13 NOV13 DEC13 Fri., June 29 Mon., July 2 15.65 16.87 17.62 17.73 17.62 17.32 17.24 17.06 16.66 16.60 16.60 16.60 16.82 16.48 16.50 16.54 16.33 16.29 16.33 15.62 16.56 17.25 17.55 17.56 17.29 17.15 16.95 16.68 16.60 16.50 16.52 16.70 16.53 16.54 16.53 16.35 16.33 16.33 4,434 4,029 4,703 3,266 2,991 2,681 2,508 500 322 274 190 142 118 38 42 24 20 19 14 Total Contracts Traded/ Open Interest 580/26,315 4,438 3,992 4,722 3,268 3,003 2,696 2,512 515 332 289 240 147 128 38 43 24 20 19 14 864/26,440 Tues., July 3 For the week ended: Wed., July 4 4,438 3,905 4,795 3,262 3,004 2,696 2,513 516 331 344 245 158 133 41 44 25 20 19 14 15.62 16.69 17.26 17.60 17.58 17.38 17.15 16.95 16.69 16.75 16.51 16.48 16.71 16.75 16.72 16.62 16.35 16.35 16.33 Thurs., July 5 15.63 16.76 17.48 17.87 17.85 17.60 17.40 17.20 16.85 16.85 16.66 16.65 16.81 16.90 16.75 16.62 16.38 16.35 16.33 4,504 3,867 4,783 3,316 3,086 2,735 2,538 573 334 348 248 161 136 43 45 25 20 19 14 1,236/26,795 532/26,503 Class IV Milk* Fri., June 29 JUN12 JUL12 AUG12 SEP12 OCT12 NOV12 DEC12 JAN13 FEB13 MAR13 13.50 14.45 14.71 15.00 14.50 14.62 14.76 15.40 15.50 15.50 283 92 74 77 67 58 57 8 6 7 Mon., July 2 13.50 14.45 14.71 15.01 14.50 14.62 14.76 15.40 15.50 15.50 Total Contracts Traded/ 0/745 Open Interest 283 92 74 77 67 58 57 8 6 7 Tues., July 3 Wed., July 4 283 92 74 77 67 58 57 8 6 7 13.50 14.45 14.71 15.01 14.50 14.62 14.76 15.40 15.50 15.50 13.24 14.45 14.71 15.01 14.50 14.62 14.76 15.40 15.50 15.50 210 92 74 77 67 58 57 8 6 7 0/672 Cash-Settled NDM JUN12 JUL12 AUG12 SEP12 OCT12 NOV12 DEC12 Fri., June 29 Mon., July 2 111.00 117.00 123.00 123.28 124.00 128.23 125.50 111.00 117.00 123.00 123.50 124.00 128.23 125.50 407 375 402 338 276 190 128 Total Contracts Traded/ Open Interest 6/2,116 407 375 407 338 276 190 128 Tues., July 3 111.00 117.00 123.00 123.50 124.00 128.23 125.50 5/2,121 Wed., July 4 407 375 407 338 276 190 128 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 6/23/12 6/30/12 $1.6346 *$1.6228 10,677,216 *11,102,437 JUN12 JUL12 AUG12 SEP12 OCT12 NOV12 DEC12 JAN13 FEB13 MAR13 141.00 154.50 156.25 156.75 157.75 157.75 159.25 160.25 160.00 160.00 774 780 778 794 634 601 517 9 1 1 Total Contracts Traded/ Open Interest 0/4,889 Mon., July 2 110.23 117.00 121.75 123.50 124.00 128.23 125.50 $1.6277 $1.5496 10,290,716 34.88 $1.6024 $1.5313 10,300,307 35.12 $1.4695 5,137,665 $1.3981 5,789,109 $1.3877 3,430,981 *$1.3678 4,350,587 $1.0977 35,647,215 $1.1090 32,599,624 *$1.1019 *30,234,060 *$1.1073 *27,994,381 $0.4868 9,417,213 *$0.4973 *8,840,282 $0.5057 9,635,222 $0.5030 9,538,589 /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. * California Minimum Prices Class 4a Class 4b Released July 2, 2012 Butterfat Equivalent SNF $ 1.4934/lb. $ 0.9128/lb. $ 13.17/cwt. $ 1.4934/lb. $ 1.0826/lb. $ 14.65/cwt. SHREDDING MACHINERY DEDICATED TO THE CHEESE & DAIRY INDUSTRIES FOR OVER FOUR DECADES! 407 381 409 338 276 190 128 Johnson Industries’ shredding machines are designed to greatly reduced fines, produce consistent length and width shreds as well as reduce floor space requirements. Several models for shredding whole loaves, blocks and wheels of all popular sizes and shapes meet the needs for consumer, foodservice and industrial applications. 55/2,129 140.25 155.05 156.25 156.75 158.00 157.75 159.25 160.25 160.25 160.25 774 780 780 795 636 606 520 11 1 1 20/4,904 140.25 153.50 154.28 155.75 157.00 157.50 158.00 160.25 161.25 161.50 Wed., July 4 774 782 780 793 637 607 520 11 1 1 25/4,906 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. #The total contracts traded for Class III milk includes electronically-traded contract volumes. *Total Contracts Traded/Open Interest reflect additional months not included in this chart. $1.5517 10,089,568 $1.6582 $1.5811 8,851,220 34.98 Thurs., July 5 0/2,121 Tues., July 3 $1.5879 10,773,288 $1.7021 $1.6220 9,209,695 34.94 Cash-Settled Butter Fri., June 29 6/9/12 6/16/12 Thurs., July 5 0/745 0/745 July 6, 2012 Thurs., July 5 139.91 153.50 154.28 155.75 157.00 157.50 158.00 160.25 161.25 161.50 762 782 780 795 634 610 520 11 1 1 21/4,896 -,6 ÊUÊ "6/" DEDICATION UÊThroughput U Consistent Shred Dimensions U Reduced Product Loss U Multiple Cheese Blending U Operator Friendly & Easily Cleaned U Easily Adjusted for Custom Styles of Shreds Johnson Industries International Inc. © 6391 Lake Road, Windsor, WI 53598 *\ÊÈän®Ên{È{{ÊUÊ8\ÊÈän®Ên{ÈÇ£x EMAIL: [email protected] WEB: www.johnsonindint.com Your Global Cheese Making and Processing Equipment Resource For more information please visit www.johnsonindint.com 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 July 6, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 4 CHEESE MARKET NEWS® — July 6, 2012 WCMA UPDATE Perspective: WCMA ® Mired in wash water Even as dairy policy demands the spotlight in Washington, and worldwide sales opportunities beckon, cheese manufacturers today find themselves preoccupied with regulation. In Wisconsin, growth, new markets and new jobs all hinge more on the ability to process wash water than on making a great piece of cheese. Two years ago, the preoccupation was new phosphorus regulations proposed and implemented by Wisconsin’s Department of Natural Resources (DNR). Looking to strictly interpret the Clean Water Act, Wisconsin enacted the nation’s most stringent standards for the level of phosphorus in wastewater that is processed and released to rivers and streams. That regulation continues to play out. As 5-year wastewater permits come due, dairy plant by dairy plant, DNR installs new, low limits for phosphorus in permit renewals. By the DNR’s own estimate, the cost to dairy and food processing plants in Wisconsin will be $440 million to add filtration systems to reduce phosphorus in wastewater from 2 mg/l down to 1 mg/l or lower. A huge cost for a handful of phosphorus. Today, cheese manufacturers and food processors in Wisconsin are engaged in new negotiations with the state’s DNR. Cheese manufacturers, from the largest state cooperative to the smallest proprietary cheesemakers, hold a total of 57 permits to apply processed wastewater onto cropland. Some spray-irrigate grassy fields, and some release wastewater on engineered, grass-covered terrace systems. As these 5-year wastewater permits come due, these “land-based” wastewater systems are being renewed with new limits on the amount of wastewater that can be spread on an acre, and limits on the pounds of dissolved solids, namely nitrogen and chloride, that can be spread per acre. Limiting wastewater means limiting cheese production. And not only can limits curtail growth, but the cost to add new wastewater processing systems and more acres of land can again mean millions of dollars in unrecoverable costs for dairy plants. Milwaukee, Wisconsin For more information please visit www.ivarsoninc.com New, lower limits for land-applying wastewater are puzzling to cheesemakers. Wisconsin food and dairy processors currently meet required groundwater quality standards and are willing to install even more monitoring wells to address performance and regulatory sampling requirements at their land-application sites. With consistent monitoring, the industry is able to demonstrate that these soil-based treatment systems meet groundwater quality standards without new, restrictive limits. In land application systems, soil and cover crops naturally treat and reduce dissolved solids found in wastewater. Soil treatment requires considerably less fossil fuel when compared to man-made, bio-mechanical systems promoted by the DNR. Wastewater from food and dairy plants is generally water used to clean equipment, wash vegetables and cool products. Nitrogen is treated and removed in properly designed and operated soil treatment systems through natural soil nitrification and denitrification, as well as uptake into crops. Systems in operation that receive 300 pounds to more than 1,000 pounds of nitrogen per acre each year successfully treat and remove nitrogen. Nitrogen loadings to local aquifers from soil treatment systems are far less than those associated with other land use activities including farming and residential use. Chloride concentrations in wastewater have, on average, been reduced to less than 300 mg/l industry wide. Typically, chloride concentrations are further reduced by a factor of 5 to 10 or more due to uptake by plants grown on these soil treatment acres and by dilution from precipitation and groundwater. Chloride loadings to local aquifers from soil treatment systems are far less than those associated with road deicing and conventional farming practices. Cheesemakers and food processors are now in discussions with DNR regarding these lower limits in land application permits. These foodmakers are asking DNR to provide scientific and quantitative justification for annual restrictions on wastewater volumes. Decades of data from monitoring well samples show that groundwater quality is being maintained. New lower limits appear arbitrary and burdensome. Wisconsin’s manufacturers of vegetables, cheese and other foods are as interested as any state citizen in keeping Wisconsin groundwater pure. These processors are willing to adhere to groundwater standards and monitor and consistently test their soil treatment systems. These new limits on dissolved solids in wastewater haven’t been justified by regulators. In an era of explosive specialty cheese growth, worldwide opportunities for export and crucial wrangling over the future of dairy policy, cheesemakers should be planning for the future, not mired in wash water. CMN The views expressed by CMN’s guest columnists are their own opinions and do not necessarily reflect those of Cheese Market News®. USDA announces decision to amend Mideast FMMO WASHINGTON — USDA recently announced a final decision to amend the pool plant definition of the Mideast federal milk marketing order. USDA notes the decision is based on testimony and evidence given at a public hearing held in Cincinnati Oct. 4-5, 2011. The decision amends the pool plant definition to more adequately identify the plants that service the fluid milk needs of the marketing order. Specifically, the amendment will regulate fluid milk plants physically located within the Mideast marketing area that have a Class I utilization of at least 30 percent and whose combined Class I route disposition and transfers into federal milk marketing areas is greater than 50 percent, USDA says. The amendment originally was proposed in a recommended decision issued Feb. 24. The program received only four comments, all in support of the recommended decision. The amendment will be subject to a producer referendum. The final decision also was published in the June 28 Federal Register. For more information, contact Paul Huber with USDA/AMS/Dairy Programs, 1325 Industrial Parkway North, Brunswick, OH 44212; call 330-225-4758; or e-mail [email protected]. CMN Reprinted with permission from the July 6, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com July 6, 2012 — CHEESE MARKET NEWS® 5 NEWS/BUSINESS Mt. Sterling Co-op celebrates its 100 year anniversary MT. STERLING, Wis. — Mt. Sterling Co-op Creamery, which crafts goat milk cheeses and butter, will celebrate its 100-year anniversary this year by planning for a new addition and expanding its artisan cheese line. The member-owned and operated cooperative with 16 patron dairy goat farms was launched as the Southwestern Wisconsin Dairy Goat Products Cooperative in 1976, but the cheese factory dates back to 1912. Today, the Mt. Sterling Co-op Creamery manufactures a full line of raw goat milk Cheddars, pasteurized Cheddars, Country Jack, Mozzarella, Feta and whey cream butter. It also specializes in an artisan line, with its first cheese, Sterling Reserve, winning national awards, including a third place at the 2011 American Cheese Society Competition. The company plans to expand its artisan line with a new cheese to be launched this fall. “We are excited to celebrate this milestone anniversary by preparing to launch a new cheese later this year, and planning a new addition to the plant that will increase our efficiency in production,” says Patricia Lund, Mt. Sterling Co-op Creamery marketing director. Since its start, Mt. Sterling Co-op Creamery has enjoyed a steady growth in production and sales, with at least a 10 percent increase in sales each year during the past five years, Lund says. CMN Prices plummet in latest gDT auction AUCKLAND, New Zealand — The trade weighted index was down 5.9 percent Tuesday following declines in average prices for all commodities in the latest auction on globalDairyTrade, Fonterra’s internet-based sales platform. The average prices for each commodity and percent change from the previous auction are as follows: • Anhydrous milkfat: US$2,745 per metric ton FAS ($1.2451 per pound), down 10.4 percent. • Skim milk powder: US$2,599 per metric ton FAS ($1.1789 per pound), down 9.8 percent. • Rennet casein: US$6,443 per metric ton FAS ($2.9225 per pound), down 4.5 percent. • Whole milk powder: US$2,760 per metric ton FAS ($1.2519 per pound), down 4.1 percent. • Milk protein concentrate: US$4,065 per metric ton FAS ($1.8439 per pound), down 3.6 percent. • Buttermilk powder: US$2,483 per metric ton FAS ($1.1263 per pound), down 0.7 percent. • Cheddar: US$3,060 per metric ton FAS ($1.3880 per pound), down 0.7 percent). The next trading event will be held July 17. For more information, visit www.globalDairyTrade.info. CMN Chinese dairy companies recall products due to contamination fears BEIJING — Two of China’s major dairy companies recently recalled products after possible contamination was discovered. According to a June 28 report from Xinhua, China’s government-run news source, Shanghai-based Bright Dairy & Food has recalled a batch of its Ubest-brand milk products after an investigation by the Shanghai Municipal Bureau of Quality and Technical Supervision revealed that the products may have been contaminated with lye. The investigation found that a mechanical malfunction had caused food-grade lye that was used to clean pipes to leak into and contaminate a production line at one of Bright Dairy’s plants, according to the bureau. The company says it has removed the milk from retail shelves and tried to recover the product that already had been sold. Earlier in June, China’s General Administration of Quality Supervision, Inspection and Quarantine announced that mercury was detected in several batches of baby formula products at one of China’s biggest dairy companies, Inner Mongolia Yili Industrial group Co. The Inner Mongolia autonomous region’s local consumer quality regulator also has reported “unusual” mercury content in two batches of Yili baby formulas and two samples of Yili whey powder, Xinhua said in a June 14 article. Yili is recalling the defective products, which were produced between November 2011 and May 2012, and says it will find the cause of the contamination and properly handle all tainted products. Xinhua reported June 15 that China has released a five-year plan to upgrade its food safety regulations, which includes revamping outdated standards, reviewing and discarding any contradicting or overlapping standards. According to the plan, 14 government departments, including the Ministry of Health, the Ministry of Science and Technology and the Ministry of Agriculture, will coordinate to finish revamping the existing standards by 2015. CMN TAKE HIGH-PRESSURE PUMPS TO A NEW LEVEL WITH THE TETRA ALEX® The pioneering design of our Tetra Alex high-pressure pump enables you to achieve efficiency on a whole new level. You can save energy and cut maintenance costs with turnable wear parts for double the lifetime and easy access for fast maintenance. These highpressure pumps are also always upgradable to meet your future processing demands. All Tetra Alex® machines can be equipped for remote control. Additionally, the high-pressure pumps utilize an automatically controlled line pressure relief valve (LPRV) on the outlet which facilitates the operation during production. Another benefi t of this new design is that it can be flushed for cleaning in place by a signal from the process control panel. We call it sound performance. Visit us at www.tetrapakprocessing.com or contact directly; [email protected], 800-806-9675 Tetra Pak, , PROTECTS WHAT’S GOOD and Tetra Alex are trademarks belonging to the Tetra Pak Group. For more information please visit www.tetrapak.com Reprinted with permission from the July 6, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 6 CHEESE MARKET NEWS® — July 6, 2012 NEWS/BUSINESS National Dairy Council joins 2-year, $1.8 million effort to end hunger, promote healthy food CHICAGO — The National Dairy Council (NDC) recently announced an alliance with the Academy of Nutrition and Dietetics and Feeding America in a 2-year, $1.8 million effort to help eliminate hunger and promote healthy food choices in the United States. The three organizations have designed a program to raise awareness of the overweight/undernourished paradox and increase the availability of healthy foods to food-insecure people. The program also is designed to educate all stakeholders about strategies to reduce hunger and promote healthy foods. The partnership encompasses the entire food system, from production to distribution. All three organizations have established in-roads into local communities — farmers, schools and food banks — and will join forces to share resources, find new ways of food procurement and work to impact the way food-insecure people nourish themselves. “The work of the National Dairy Council has focused on nutrition research, education and communication for nearly a century to encourage healthy eating patterns and lifestyles,” says Jean Ragalie, president, NDC. “Because there is often a gap between the quantity of food that can be secured and the nutritional quality of that food, many of our nation’s hungry are also overweight.” Ragalie notes that finding a solution to the problem will take everyone working together. “We hope this will raise awareness of the issue and will educate leaders and the public to integrate sound nutrition principles in feeding programs and access to healthy foods,” she says. This partnership signals an industry-wide effort to address the intersection of nutrition and food insecurity, says Vicki Escarra, CEO, Feeding America. “Our combined resources, research and expertise will make changes at a local level that will ultimately affect the health of our nation,” Escarra says. Ethan A. Bergman, president of the Academy of Nutrition and Dietetics, notes the group is proud to support initiatives that combat hunger and malnutrition, produce food security, promote self-sufficiency, educate consumers and health professionals, and are environmentally and economically sustainable. Together, we can optimize the performance of your sanitary membrane application. Parker offers global support to end-users and OEM’s in the design, delivery and development of highperformance elements. Through advancements in Parker membrane technology, we deliver value-added solutions to your sanitary membrane application: Sanitary spiral configurations & membrane types include: ä Leader in Microfiltration Parker is a world leader in whey fat removal & protein casein separations in milk ä Crease Protector Technology (CPT) Sanitary design to reduce bacteria ä Power Saver Spiral (PSS) Increases crossflow and minimizes energy costs ä Reverse Osmosis ä Nanofiltration ä Ultrafiltration ä Microfiltration Available in the following diameters: ä 3.8” (97mm) ä 4.3” (129mm) ä 6.3” (161mm) ä 8.0” (203mm) ä 8.3” (210mm) ä 10.0” (249mm) For questions on Parker’s membrane elements, please call 715 629 7111. FIND OUT MORE! Visit us at: www.parker.com/sanitarymembranes Parker-Hannifin Corporation domnick hunter Process Filtration - N.A. 2340 Eastman Avenue | Oxnard, CA 93030 toll free: 877 784 2234 For more information please visit www.parker.com/sanitarymembranes “The academy, our members and all registered dietitians recognize that hunger continues to be a worldwide problem of staggering proportions,” he says. “We look forward to working with Feeding America and NDC to develop workable strategies that will end hunger and achieve food security.” Feeding America last month also put out a series of public service announcements (PSAs) titled “Summer Isn’t Fun When You Are Hungry.” The PSAs draw attention to the statistic that though more than 21 million children receive free and reduced-price meals during the school year, only 2 million children access free meals from USDA’s Summer Food Service Programs. “When school is in session, lowincome students are assured at least one healthy meal because of the school lunch program; however, lack of access to those meals is condemning our children to summer days that are consumed with hunger, rather than fun times where they can embark on adventures that enrich and develop their minds in countless ways,” Escarra says. The PSAs leverage TV, radio and outdoor advertisements in an effort to direct families in need to contact their local food bank for help or visit FeedingAmerica.org/ SummerMeals to find more information on the program in their area. CMN Dannon now using McCarty Family Farms milk to produce yogurt at plant in Texas REXFORD, Kan. — Milk produced at a new McCarty Family Farms is now being shipped to Fort Worth, Texas, by the Dannon Co. to produce yogurts under terms of an exclusive multi-year agreement reached between the companies last year. The agreement made McCarty Family Farm’s 500,000 pound-per-day dairy the sole provider of fresh milk for Dannon’s yogurt plant in Fort Worth. An environmental sustainability initiative of the collaboration led to construction of a milk condensing facility at McCarty Family Farms that is now operational. The new condensing facility will reduce the number of trucks needed to ship milk by 75 percent and allows the farm to reuse the water that is removed during condensing of the milk. Approximately 39,000 gallons of water is reclaimed daily from condensing milk. “I applaud McCarty Family Farms and Dannon for entering into a successful partnership that benefits farmers, the small businesses that support farmers, consumers and the community as a whole,” says Kansas Gov. Sam Brownback. “This partnership is a fabulous example of how agriculture can create good-paying rural jobs with the potential to spur significant additional job creation in the future.” Since the partnership was initiated in 2011, more than 50 jobs have been created in rural Kansas, doubling the size of McCarty Family Farms to more than 100 employees. Through the partnership, both McCarty Dairy and Dannon will reduce the impact of milk pricing volatility and create a closer relationship between farmer and consumer, the companies say. McCarty Family Farms is a fourthgeneration dairy located in western Kansas. In 2000, in search of more land, the McCarty family moved its dairy to Rexford. Since its relocation, the dairy has grown from 800 cows to 7,200 cows and three separate facilities in Rexford, Bird City and Scott City, Kansas. “The success story of the McCartys is one we want to celebrate and hold up while encouraging growth for all of Kansas agriculture,” says Kansas Secretary of Agriculture Dale Rodman. “They are proof that Kansas is a great place for the dairy business and that agriculture breathes life into our rural communities.” CMN Coca-Cola to distribute Fair Oaks milk shakes CHICAGO — Coca-Cola Refreshments will distribute Core Power High Energy Milk Shakes, a workout recovery product produced and marketed by Fair Oaks Farm Brands. Originally marketed as Athletes Honey Milk in Colorado and Texas, the new Core Power line of products — with a ratio of 20 percent whey and 80 percent casein — will initially be made available in select markets, the companies say. “Our unique cold filtration process which allows us to increase the amounts of protein and calcium is a true innovation in the dairy category,” says Steve Jones, CEO of Fair Oaks Farms Brands. “Core Power replen- ishes strength and builds lean muscle after a workout. It’s a perfect recovery drink for everyone from the elite athlete to those just trying to keep fit.” Fair Oaks Farms Brands, which is owned by an independent group of 87 American family farmers, has developed five flavors of Core Power: honey, chocolate, vanilla and strawberry banana. All five drinks are lactose and gluten free. “This new brand is part of an exciting category for consumers and retailers that is still in the early stage of its growth potential,” says Deryck van Rensburg, president of Coca-Cola North America Venturing and Emerging Brands (VEB). CMN Reprinted with permission from the July 6, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com July 6, 2012 — CHEESE MARKET NEWS® 7 NEWS/BUSINESS National Dairy Council, General Mills will award grants for school breakfast programs Study finds use of private label products is up, overall consumer satisfaction is down ROSEMONT, Ill. — The National Dairy Council has partnered with General Mills Foodservice for the fourth consecutive year to offer $50,000 in Fuel Up Breakfast Grants, which provide nutritious breakfasts for children across the nation. Schools interested in developing or expanding breakfast programs can apply to receive up to $2,000 in funding through the program. Over the last three years, the grant program has provided more than $260,000 in funds and has significantly increased breakfast participation in the classroom by offering nutritious choices such as yogurt parfaits, fruit, whole grain cereals and low-fat and fat-free yogurt. “In this time of economic challenges and time constraints, it is more impor- CHICAGO — Consumer use of private label food and beverage products continues to rise despite consumer satisfaction in the products dropping in recent years, according to the NPD Group. A NPD food and beverage market research report found that private labels’ share of household servings was 27 percent in 2011, up from 18 percent recorded in 2000. Since 2009, however, consumer satisfaction in private labels has dropped from 32 percent to 24 percent. The increased usage of private label foods and beverages may have been more a result of the economy and higher grocery prices than consumer desire to purchase private label products, NPD says. In 2009, 34 percent of adults said they intended to purchase more private label foods, but that percentage has dropped to less than a quarter of adults in 2012, according to the report. The report examines why private label servings may be up while intent to purchase more private label is down and finds, among the explanations, that consumers’ store brand name tant than ever to create an environment that makes eating healthy and staying active attainable within any type of budget in any school district,” says Jean Ragalie, president of the National Dairy Council. The Fuel Up Breakfast Grant is open to schools within the United States who participate in the National School Breakfast Program and are enrolled in the National Dairy Council “Fuel Up to Play 60” program for the 2012-13 school year. More information and applications are available at http://school.fueluptoplay60.com/funds/introduction.php. Applications will be accepted through July 31. Applicants will be notified by Aug. 15 as to whether their school’s application has been approved or declined. CMN Sartori Cheese Co. named best cheese in 2012 Dairy Innovation Awards in Norway OSLO, Norway — Sartori Cheese Co., Plymouth, Wis., received top cheese at the 2012 Dairy Innovation Awards recently hosted here. Sartori’s Espresso BellaVitano was the event’s Grand Champion Cheese, selected as the best cheese in a global competition encompassing entries from 25 countries. Sartori’s Limited Edition Cognac BellaVitano also was named as a finalist in the cheese competition. “It is wonderful to see U.S. cheesemakers being recognized and winning best of class awards in these very competitive and prestigious competitions,” says Jeff Schwager president of Sartori. “Wisconsin and U.S. cheese companies are making some of the best cheese in the world — and the experts are acknowledging that fact with these recent results.” The 2012 Dairy Innovation Awards were hosted in conjunction with the annual Global Dairy Congress, a gathering of the world’s leaders in dairy trends and development. The winners of the Dairy Innovation Awards are judged not just by the flavor profiles of their products, but also by the uniqueness and potentially revolutionary impact the product could have on the industry. Other winners of 2012 Dairy Innovation Awards include: • Best butter or dairy spread: Botergoud Roomboter voor Bakken en Brade, FrieslandCampina, the Netherlands. (Finalist: Arla Foods UK, Lactofree Spreadable). • Best ice cream or frozen yogurt: Meiji Co. Ltd., Japan, Meiji Crispy’s. (Finalists: Fivemiletown Creamery, Northern Ireland, Strawberry & Bal- samic Cheesecake; Gujarat Cooperative Milk Marketing Federation Ltd., India, Amul Flaavyo Frozen Yogurt; General Mills, Minneapolis, Häagen-Dazs Secret Sensations). • Best functional dairy product: Wimm- Bill- Dann, Russia, Imunele for Men. (Finalists: Corporación Alimentaria Peñasanta, Spain, Naturcol; Corporación Alimentaria Peñasanta for Fibra, Tine SA, Norway, YT Mellommåltid Kesam; and AGV Products Corp., Taiwan, Happy Ranch Bifidus Boost Yogurt Shake with GOS). • Best dairy drink: Meiji Co. Ltd., Japan, Meiji Colours of the Season Milk. (Finalists: Madeta, Czech Republic, Madeta Fitness Whey Drink; and AGV Products Corp., Taiwan, Happy Ranch Bifidus Boost Yogurt Shake with GOS). • Best children’s dairy product: Parag Milk Foods Ltd., India, Go Cheezooz.(Finalists: AGV Products Corp., Taiwan, Happy Ranch Super Mom Healthy Milk; and Gujarat Cooperative Milk Marketing Federation Ltd., India, Amul Pro). • Best dairy dessert: Maeil Dairies Co. Ltd., South Korea, Pure. (Finalist: Wimm-Bill-Dann, Russia, Chudo Collection). • Best yogurt: Bright Dairy & Food Co., China, Mosili’an Ambient Yogurt. (Finalists: Tims Dairy Ltd., United Kingdom, Tims Greek Style Yogurt with Honey; and Nanyang Polytechnic, Singapore, Peach Osmanthus Yogurt Cake). • Best newcomer dairy brand of dairy business: Savera Dairy, Arla Foods UK. (Finalist: Bridgehead Food Partners, United Kingdom, Chunky Cheese). CMN awareness and identification remain quite low— 25 percent of shoppers are unable to identify the top selling store brand as a store brand. The report also found that consumers’ loyalty to private label is still strongest in categories that are mostly used as ingredients. Flour and butter top the list of private label-loyal categories. On the flip side, categories where there is a stronger loyalty for name brands are very likely to display the brand to the user, including frozen dinners / entrees, yogurt and soft drinks. “The question is if food inflation declines and at the same time the economy improves, will consumers return to the name brands they know and trust,” says Darren Seifer, NPD food and beverage industry analyst and author of the report. “This could become a reality if retailers don’t respond to declining satisfaction and if name brand manufacturers continue to aggressively build loyalty. On the flip side, name brands need to be aware that private label usage continues to increase and the quality perception is improving.” CMN Our Customers… Making You Our Number One Priority! ■ ■ ■ ■ New Management Over 20 Years Experience State-of-the-art Equipment Efficient & Cost Effective MSS Equipment & Services: • Reverse Osmosis (RO) • Nanofiltration (NF) • Ultrafiltration (UF) • Microfiltration (MF) • MemBrine Brine Purification • Micro-Steel Chemical Recovery • Wastewater Recovery • On-Farm™ Milk Concentration • Membrane Systems • Turn-key Plants • Engineering • Fabrication • Installation • Pilot Testing • Consulting • Training • Start-ups • Replacement Parts …Expanding Globally to Meet Your Needs! P. O. Box 998 • 1430 Second Street North Wisconsin Rapids, WI 54495 (715) 421-2333 • Fax (715) 423-6181 Email: [email protected] Web: www.mssincorporated.com For more information please visit www.mssincorporated.com Reprinted with permission from the July 6, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 8 CHEESE MARKET NEWS® — July 6, 2012 PEOPLE Dykshorn, Kenealy receive Ralph Keeling Leadership Award from Iowa State Dairy Association ANKENY, Iowa — The Iowa State Dairy Association (ISDA) has named Wayne Dykshorn, a dairy farmer from Ireton, Iowa, and Dr. M. Douglas Kenealy, Iowa State University professor of animal science, the recipients of the 2012 Ralph Keeling Leadership Award. Dykshorn grew up in rural Sioux County and began working for his father on the family dairy farm in 1963. When the dairy parlor burned down in 1964, Wayne rebuilt it and soon after, his father sold him half interest in the farm. Dykshorn worked to expand his dairy herd and it now numbers 500 milking and dry cows and the same number of heifers. His sons, Paul and Alan, now continue to manage the dairy, becoming the fourth generation on the family’s farm. Dykshorn served for nearly 30 years on the Mid-Am/Dairy Farmers of America (DFA) board of directors and several years on the ISDA board of directors, serving as president for four years. Dykshorn and his family were honored as Members of Distinction at the 2011 DFA annual meeting. Kenealy received a bachelor’s degree in dairy science and a doctorate degree in animal nutrition and physiology from Iowa State University (ISU). In 1975, Kenealy was hired by the Animal Science Department at ISU to advise undergraduates in dairy science and teach animal nutrition and introductory animal science. Over the past 37 years, Kenealy taught or advised more than 15,000 students. He taught two to four courses per semester and served as academic advisor to between 50 and 90 undergraduates. He was sought out for co-curricular advising to numerous clubs and events, including Ag Council, Block and Bridle Club and 36 years as the advisor to the Dairy Science Club. Kenealy was named Professorin-Charge of Dairy Science and Section Leader for Animal Science Teaching; through these positions he served not only as teacher and advisor to students and student organizations, but also as a mentor to young teaching faculty. Kenealy has served the dairy industry as a board member of the ISDA, Midwest Dairy, District 6 of Swiss Valley Cooperative and the former Dairy Advisory Committee of the Iowa Farm Bureau Federation. He was selected as a Fellow of the American Dairy Science Association in 2005. The Ralph Keeling Leader- ship Award is given in honor of the late Ralph Keeling. Keeling operated a successful dairy farm and business, devoting much of his time and talents to help the progress of Iowa’s dairy industry. Since 1967, this award has been presented annually to outstanding individuals in various fields of the State’s dairy industry. CMN Comings and goings … comings and goings Magnetic Products Inc. (MPI), Highland, Mich., has hired John Nathan as director of operations to accommodate the company’s recent expansion and projected growth. Nathan brings more than 20 years of leadership experience with several manufacturers where he developed new products and implemented efficiency and quality initiatives to capitalize on growth opportunities. In his new role, Nathan will be responsible for all aspects of facility operation, customer service, research and development, and continuous improvement of manufacturing and purchasing processes. Daniel Dowe, president and CEO of Artisanal Brands Inc., New York, has been elected to the board of directors of National Association for the Specialty Food Trade (NASFT) for a two-year term. The NASFT is a not-forprofit business trade association that fosters trade, commerce and interest in the specialty food industry. CMN Celebrating Over 25 Years of Excellence (International Media And Cultures) Offering A World of Innovative Products For Cheese and Dairy Manufacturers FINALLY…TECHNOLOGICAL ADVANCEMENTS IN THE ANTI-CAKING ARENA! Our technology permits the end user to utilize anti-caking agents at higher than normal levels with improved functionality and bake performance whether it is cellulose or starch-based products. IMAC Anti-caking agents offer these advantages: • Usage at Higher Levels • Less Dust On Site • Cheese Does Not Look Moldy • Product Does Not Settle to the Bottom of the Bag or in the Seals • No Gritty Mouth Feel • Available with Natamycin A VALUED PARTNER DEDICATED TO YOUR SUCCESS Architecture and building engineering | Sustainable design Planning and programming analysis | Construction management Cheese w Anti-cak ith free flowing and funct ing Agen ts ional Call, email or fax today for a FREE SAMPLE, pricing and further information! Electrical engineering | Mechanical engineering Civil designs and geotechnical services Water and environmental services • RETAIL • FOODSERVICE • INDUSTRIAL WORLD HEADQUARTERS 1250 S. Parker Rd., Ste. 203 • Denver, CO 80231 (800) 783-4615 • (303) 337-4028 (Ext. 112) Fax: (303) 337-5140 Email: [email protected] Web: www.askimac.com Mead & Hunt, Inc. 6501 Watts Road Madison, Wisconsin 53719 608-273-6380 meadhunt.com PIONEERS IN DAIRY, FOOD & BIO TECHNOLOGY For more information please visit www.askimac.com For more information please visit www.meadhunt.com Reprinted with permission from the July 6, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com July 6, 2012 — CHEESE MARKET NEWS® 9 PEOPLE George Hutson retires from Filtration Engineering after decorated career in dairy industry By Aaron Martin CHAMPLIN, Minn. — George Hutson, who has served as president of Filtration Engineering since he founded the corporation in 1982, has retired after a decorated career in the dairy industry that spanned more than four decades. Todd Hutson, George’s son, became president July 1. George Hutson’s career in the dairy industry began in 1969 in the sales department of Haskon, a manufacturer of filling machines for milk cartons. In 1976, the company acquired General Dairy Equipment, which sold membrane processing equipment, and Hutson joined that company, progressing from sales manager to general manager before the company was sold in 1982. A short time later, Hutson used his experience with membrane processing to found Filtration Engineering. “Initially we just did consulting, but we started to build equipment by 1985 or ’86,” Hutson says. “In 1988 we developed Ultra Osmosis Membrane applications, which is now known as nanofiltration. The first one was installed at a dairy in Winstad, Minn., for demineralizing salt whey.” Filtration Engineering didn’t stop innovating there. The company went on to develop the first Ultra Filtration system with continuous volume processing and the first 18-inch diameter membrane reverse osmosis systems. Dr. Gonca Pasin appointed new executive director of CDRF by board DAVIS, Calif. — Dr. Gonca Pasin has been appointed executive director of the California Dairy Research Foundation (CDRF) by its board of directors. She served as interim executive director following the retirement of Dr. Joe O’Donnell in December. “I am privileged to have this opportunity and recognize the great responsibility managing California dairy farmers’ check-off dollars presents,” says Pasin. Pasin has worked as an advisor to the dairy industry, including as strategic coordinator of the International Milk Genomics Consortium. She also has experience providing proprietary consulting services that integrate research and strategic analysis to a variety of clients. Pasin’s previous affiliations include senior scientific researcher at the National Institute for Dairy Research, Reading, England; professor in the department of food engineering at Hacettepe University, Ankara, Turkey; Fulbright Scholar and visiting professor in the Department of Food Science and Technology at the University of California-Davis; and president of the Pasin Business Consulting Group. CMN For his contributions to the dairy industry, Hutson has received the Award of Merit from the American Dairy Products Institute (ADPI) and the United States President’s “E” Award for excellence in importing and exporting, and he’s also been recognized by the Wisconsin Cheese Makers Association (WCMA). Throughout his career, Hutson has seen the landscape of the dairy industry change domestically and abroad. “It’s changed from local and regional dairies that would process and sell in a state or a few states to large, global processing companies now that sell worldwide,” he says. “I believe that it’s going to continue. The industry is go- ing to continue to consolidate and get bigger. It’s not going to stop, because milk protein consumption is increasing in developing countries.” Hutson says his son Todd Hutson is well-positioned to lead the company into the future. Since joining Filtration Engineering in 1989, he has worked as salesman, sales manager and most recently as vice president of sales and marketing. Looking forward, Todd Hutson says Filtration Engineering has great opportunities to continue its long legacy of innovation in the dairy industry. “As the world dairy market grows, the opportunities are ever expanding,” Todd Hutson says. “There will be more new plants, and we’ll have more opportunities to sell new equipment because of our position in the marketplace. We offer efficiencies and advantages that other (companies) don’t.” Todd Hutson adds that, “Automation is where we’re focusing our efforts. The technology has always been there to do (automated) process analysis, but integration is the key.” As for George, he says that he doesn’t have any specific plans for retirement. “I’ll be taking it easy, traveling around the world and seeing a lot of the friends I’ve made in the dairy industry over the years,” he says. CMN Scan + Control = Profit The ProSpect™ Analyzer controls your UF to add profit to your operation. You can count on our in-line, real-time analyzer to scan the WPC protein level accurately, then send the scanned information to a membrane system PLC control processor. The ProSpect™ Analyzer controls the total solids and protein level in WPC to + or – 0.30% of the WPC target between 35% and 80%. This previously unavailable accuracy means a vast difference in the profitability for whey processing operations. In other words, you now have a proven tool that increases yield and is absolutely user friendly. FILTRATION ENGINEERING COMPANY, INC. • 12255 Ensign Avenue, Champlin, Minnesota 55316 U.S.A. (800) 553-4457; (763) 421-2721; Fax: (763) 421-1988 • filtrationeng.com For more information please visit www.filtrationeng.com Reprinted with permission from the July 6, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 10 CHEESE MARKET NEWS® — July 6, 2012 NEWS/BUSINESS New sustainability resources deliver economic, environmental wins for dairy industry ROSEMONT, Ill. — Since its launch of the U.S. Dairy Sustainability Commitment in 2008, the Innovation Center for U.S. Dairy has worked to unite the dairy value chain in a collective effort to measure and improve the environmental, social and economic sustainability of the industry. Using a research-based approach, the Innovation Center is establishing benchmark measures of industry-level dairy sustainability, while putting tools in the hands of decision-makers to drive innovation at the individual businesses. In celebration of Earth Day, the Innovation Center for U.S. Dairy announced three resources available to the industry, its partners and consumers that will help the dairy value chain measure, improve and communicate about sustainability. Two web resources — Dairy Plant Smart and Dairy Fleet Smart — have been released. Dairy Plant Smart enables fluid milk processing plants to evaluate overall energy use — including production, transport, refrigerant losses and packaging — to identify opportunities to conserve energy use. In addition to reducing Green House Gas (GHG) emissions and lowering utility bills, energy efficient practices can help milk processing plants improve system reliability, prevent maintenance and shutdown costs, increase productivity and introduce new revenue streams. Dairy Fleet Smart helps transportation managers identify ways to Wisconsin Rapids, WI DC Follow us on and PARTNERING WITH THE DAIRY AND CHEESE INDUSTRY SINCE 1977 WOW Offers… To learn more about how WOW partners with the dairy & cheese industry download a free QR Code reader on your smartphone and scan this code. ■ ■ ■ ■ Warehouse Locations in WI, ID & IL Nearly 7 million sq. ft. total space Over 20 million cu. ft. cooler space ASI Excellent Rated Facilities ■ ■ ■ ■ Rail-Served Facilities Cheese Financing Program Transportation Services Build To Suit Contact our “Cheese Guy” Rick Schlapman 800.236.3565 x1038 [email protected] www.wowlogistics.com For more information please visit www.wowlogistics.com more efficiently deliver milk from the production facility to storage or retail by completing a 360-degree evaluation of fuel used. Adopting fuel-efficient best practices can save trucking companies a substantial amount in fuel costs, while also reducing emissions. The Dairy Plant Smart and Dairy Fleet Smart tools feature case studies highlighting proven best practices and the associated cost and energy savings. The respective calculator tools also allow dairy plants and transport fleets to benchmark their energy efficiency performance against the U.S. average to identify areas for greatest improvement. As part of the U.S. Dairy Sustainability Commitment, Dairy Plant Smart and Dairy Fleet Smart aim to help the industry achieve a combined reduction of 705,457 metric tons of emissions and $108 million in annual business savings toward the voluntary industrywide reductions goals. “Resources like Dairy Plant Smart, Dairy Fleet Smart and the 2011 U.S. Dairy Sustainability Report provide verified information, common measures and best practices to help producers, processors, manufacturers, transporters and brands improve their economic, social and environmental sustainability,” says Jed Davis, director of sustainability at Cabot Creamery Cooperative. In addition to these new resources, usdairy.com/sustainability provides access to more decision-making tools like the Save Energy resource, which connects dairy farmers with financial assistance opportunities for farm energy audits and equipment upgrades. The recently-released Innovation Center 2011 U.S. Dairy Sustainability Report serves as a comprehensive resource on dairy sustainability. The 2011 report expands beyond the GHG emissions and fluid milk focus of the 2010 report to include broader discussion on the environmental, social and economic aspects of U.S. dairy. Highlights of the 2011 industrywide efforts include: • Engaging more than 830 stakeholders who invested approximately 6,700 working days, valued at more than $6.2 million, to support dairy sustainability efforts throughout the year. • Launching a new industrywide initiative to establish the Sustainability Measurement and Reporting Framework for U.S. Dairy. • Partnering with stakeholders in the inaugural U.S. Dairy Sustainability Awards program, which recognizes efforts that deliver outstanding benefit to business, community and the environment. CMN National Milk Mustache campaign names 25 scholar athletes for 2012 promotion WASHINGTON — The National Milk Mustache “got milk?” campaign and USA Today have announced the winners of the 2012 Scholar Athlete Milk Mustache of the Year (SAMMY) awards. SAMMY awards scholarships to 25 high school senior student athletes who excel in academics, athletics, community service and consume Your One-Stop Parts Source We feature over 4,000 O.E.M. parts in stock from Alfa Laval, Tetra Pak and Westfalia, as well as our own line of parts that meet or exceed industry standards. Separators, Inc. minimizes your downtime with 24/7 availability and same-day shipping. Servi e Servic Service Equipment Parts 24/7 Parts & Service 95% Fill Rate O.E.M. Parts Separators, Inc. Manufactured Parts (800) 233-9022 www.separatorsinc.com For more information please visit www.separatorsinc.com milk. This year, more than 30,000 high school seniors applied. Each winner receives a $7,500 college scholarship and will star in a special milk mustache ad in the June 29 issue of USA Today. The winners also will attend a weekend of events in Disney World with their families, including an awards ceremony hosted by Milk Mustache with celebrity guests Chauncey Billups and Jennie Finch. Over the past 15 years, 375 teens have won the SAMMY awards for setting a positive example to their peers. This year’s 25 winners were selected by a panel of athlete judges including Chauncey Billups, Dara Torres, Andy Roddick, Tony Hawk and Jennie Finch. “We are thrilled to be able to reward these exceptional teens for their commitment to sport, education and their health,” says Victor Zaborsky, marketing director, National Milk Mustache “got milk?” campaign. “They also serve as role models for drinking milk — especially at breakfast. Milk is a natural source of high-quality protein, which helps keep you full in the morning, so you’ll stay on track with your healthy eating plan throughout the day. SAMMY winners understand it’s just not breakfast without milk.” CMN Reprinted with permission from the July 6, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com July 6, 2012 — CHEESE MARKET NEWS® 11 PEOPLE Obituary Daphne Zepos SAN FRANCISCO — Daphne Zepos, who founded Essex Street Cheese Co., co-owned The Cheese School of San Francisco and was regarded by her peers as a dynamic and outspoken advocate for cheese, died July 3 of cancer. She was 52. Zepos grew up in Europe the daughter of a Greek diplomat. She studied at the University of Kent in Canterbury, England, and at the Architectural Association in London before moving to New York to study at Peter Kump’s New York Cooking School in 1986. She married her husband Brad Brown in 1994. Over the years, Zepos became a cheese importer, educator and writer. From 20022005, she played a lead role in selecting and maturing more than 300 cheeses in Artisanal Premium Cheese Center’s affiniage cheese caves, assembling many cheese collections, establishing Artisanal’s Affiniage Internship Program and, with Max MacCalman, creating and teaching Artisanal’s Cheese Master Class program. In 2006, she founded the Essex Street Cheese Co., which imports a small selection of hand-selected cheeses from Europe. With her business partner Kiri Fisher, Zepos and her husband purchased The Cheese School of San Francisco in 2011. It is the only independent institution in the United States dedicated to helping people maximize their enjoyment and appreciation of cheese through education and tasting events. The American Cheese Society (ACS) recently named Zepos the recipient of its 2012 Lifetime Achievement Award. The award is presented to an individual who has earned the respect and admiration of his or her colleagues in the cheese industry. In his letter of nomination for the award, Ari Weinzweig, co-founder and CEO of Zingerman’s Community of Businesses, noted that, “Daphne’s work to educate retailers, chefs, cheese mongers and cheesemakers has contributed enormously to a huge improvement in the quality of the cheese on counters across the country. Her passion, the poetry of her cheese descriptions, her never-ending drive for better flavor, for teaching people what makes good cheese good, and for making alreadygood cheese even better is truly unrivaled.” Zepos is a former ACS board member, former chairperson of the annual ACS Judging & Competition, and a cofounder of the Cheese of Choice Coalition, an advocacy group dedicated to the preservation of raw milk and small production cheeses. Donations can be made to support education for cheese professionals through the American Cheese Education Foundation, c/o American Cheese Society, 2696 S. Colorado Blvd., Suite 570, Denver, CO 80222, or by calling 720-328-2788 ext. 300. CMN Twelve appointed to National Dairy Promotion and Research Board WASHINGTON — Agriculture Secretary Tom Vilsack has announced the appointment of 12 members to the National Dairy Promotion and Research Board. The appointees’ terms will begin immediately and end in October 2014. “These appointees represent a cross section of the dairy industry and I am confident that the industry will be well served by them,” says Vilsack. Newly appointed members are: Kima Simonson, Washington (Region 1); Lynda Foster, Kansas (Region 4); John Howerton, Arkansas (Region 4); Amber Horn-Leiterman, Wisconsin (Region 6); Larry Shover, Iowa (Region 7); Julie Veldhuis Lund, Idaho (Region 8); Urban Mescher, Ohio (Region 9); Celeste Deaderick Blackburn, Tennessee (Region 10); and Harold Howrigan, Jr., Vermont (Region 12). Reappointed to serve second terms are: Ronald Shelton, Colorado (Region 3); Kenton Holle, North Dakota (Region 5); and Sharon Laubscher, Wisconsin (Region 6). The Dairy Board was established under the Dairy Production Stabi- lization Act of 1983 to develop and administer a coordinated program of promotion, research and nutrition education. The 38-member Dairy Board is authorized to design programs to strengthen the dairy industry’s position in domestic and foreign markets. The program is financed by a mandatory 15-cent per hundredweight assessment on all milk marketed commercially and a 7.5-cent per hundredweight assessment, or equivalent thereof, on milk and dairy products imported into the United States. CMN 345#6/%-%<'-#'")=(!-#64?#1%((0)#,00!$7 Your Product. Our Systems Know-How. Today‘s food, dairy and beverage lines need modern technology that !"#!$$%&'(!&)*#)+,-!)$(#'$.#/)0!'10)2#345#6/%-)""#4$7!$))/!$7#8'"# (8)#)$7!$))/!$7#"%09(!%$"#(%#/)(/%,(#'$#):!"(!$7#";"()<#%/#.)&)0%=#'# completely new plant. With years of technical expertise, GEA Process Engineering works closely with your product developers to custom engineer the best solution. ># ># ># ># heat treatment <)<1/'$)#,0(/'(!%$ thermal concentration and separation drying and particulate processing GEA Process Engineering Inc. 1600 O‘Keefe Road, Hudson, WI, 54016 Phone: 1 715 386 9371, Fax: 1 715 386 9376 [email protected], www.niroinc.com engineering for a better world ># ># ># ># powder transport & packaging 64?#'$.#@A64#1%((0)#,00!$7 cleaning-in-place (CIP) process integration and automation GEA TDS UHT Plant 9165 Rumsey Road, Columbia, MD, 21045 Phone: 1 410 997 8700, Fax: 1 410 997 5021 GEA Process Engineering For more information please visit www.niroinc.com Reprinted with permission from the July 6, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 12 CHEESE MARKET NEWS® — July 6, 2012 NEWS/BUSINESS U.S. Department of Agriculture finds healthy foods are cheaper than less healthy foods WASHINGTON — Healthy foods are less expensive than unhealthy foods when compared in a number of price metrics in a study conducted by USDA’s Economic Research Service (ERS). The study compares the prices of healthy and less healthy foods using three price metrics: price per calorie, per edible gram and price per average portion, and calculates the daily cost of meeting food group recommendations listed on the website www. choosemyplate.gov. While a common perception is that diets consistent with the recommendations are not affordable, USDA attributes that perception to studies that found many healthy foods cost more per calorie than less healthy foods. However, previous studies have lacked a clear definition of healthy foods, which are defined in USDA’s report as food items that contain an amount of a food in at least one of the major food groups (vegetables, fruits, grains, dairy and protein foods) equal to at least half the portion size Dietary Guidelines for Americans 2010 uses for measuring the nutrients in that food and contain only moderate amounts of saturated fats, added sugars and sodium. The USDA report found that when WHO, WHAT, WHEN, WHERE, WHEY? If whey powders are your business, Tetra Pak has the answers to all of your questions. We give you immediate access to decades of experience and expertise. Tetra Pak has the dedication to back you up. Our goal is to enable you to gain greater profitability from your whey production. Get in touch with us today to see how we can put our know-how to work for you. Just phone Beth or one of our sales engineers at 320 485 4401 or send an email to [email protected] Tetra Pak, and PROTECTS WHAT’S GOOD are trademarks belonging to the Tetra Pak Group. Be th K ei p th – ar t of t eam Pa k t e tra T e h . For more information please visit www.tetrapak.com measured on the basis of edible weight or average portion size grains, vegetables, fruit and dairy foods are less expensive than most protein foods and foods high in saturated fat, added sugars or sodium. Researchers placed foods into the five food groups — grains, dairy, protein, fruits and vegetables. A category was added for unhealthy foods, including products high in sugar, sodium and/or saturated fat such as cookies, candy, desserts, granola bars and many ready-to-eat cereals. When using weight and portion size as the guide, many healthy foods were not any more costly than unhealthy ones, says Andrea Carlson, an economist and co-author of the report. She says one of the best ways to think of food costs is to consider portion size: “How much do you have to pay to put something on your plate?” Overall, researchers found when considering portion size, the ranking from least to most expensive is: grains, dairy, vegetables, fruit, protein and less healthy foods. Protein and less healthy foods are very close in cost. When trying to eat a healthy diet based on the government’s dietary guidelines, protein and vegetables are the most expensive recommendations to meet, followed by fruit, she says. One of the reasons: The vegetable recommendation has high amounts, about 2½ cups for someone eating a 2,000-calorie-a-day diet, and so it takes a lot of food to meet that goal, Carlson says. The study authors estimated the cost for 4,439 food items by the price per calorie, per edible gram, and per average portion consumed and drew from three data sets: the National Health and Nutrition Examination Survey (NHANES) to estimate the types and quantities of foods consumed, the USDA’s Center for Nutrition Policy and Promotion (CNPP) food prices database for food prices, and the USDA Food Pattern Equivalent Database (formerly known as the MyPyramid Equivalent Database) for information on food group classification, saturated fat, added sugars and sodium content. CMN Fonterra agrees to acquire Russian owned dairy plant in New Zealand AUCKLAND, New Zealand — Fonterra recently confirmed it has entered into a conditional agreement to acquire the milk processing assets of the New Zealand Dairies Ltd. (NZDL) group in South Canterbury, New Zealand. The acquisition is subject to clearance by the Commerce Commission. The Russian-owned dairy factory was placed into receivership May 17, and the receivers called for bids to buy the business and assets of NZDL soon after. As part of the agreement, NZDL’s existing suppliers have been offered the opportunity to supply Fonterra on contracts, which will enable them to become Fonterra fully share backed after the 2012/2013 season and require them to be shareholders within six years. The plant currently is processing approximately 150 million liters of milk a year into milk powders for export. CMN Reprinted with permission from the July 6, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com July 6, 2012 — CHEESE MARKET NEWS® 13 NEWS/BUSINESS Report looks at raw milk cheesemaking WELLINGTON, New Zealand — A new report, “Factors influencing staphylococcal enterotoxin production in dairy products,” recently was prepared for New Zealand’s Ministry for Primary Industries by researchers Susan Paulin, Beverly Horn and John Andrew Hudson. The report was published following recent regulatory changes that have opened the way for domestic production of raw milk cheeses in Australia and New Zealand. (See “Proposal to allow raw milk cheese sales in Australia is approved” in the May 18, 2012, issue of Cheese Market News.) The report’s objective is to identify conditions and physico-chemical parameters during the raw milk cheesemaking process that may influence growth of Staphylococcus aureus bacteria. According to the report, the initial stages of cheese production involve the incubation of raw milk at warm temperatures for varying periods such that S. aureus can start to grow. While the pH of raw milk will allow this growth, the growth of competing bacteria will reduce the milk pH, and in time the pH may decrease to the point where S. aureus cannot grow. The report notes that there may also be other mechanisms by which the starter culture is able to inhibit or slow the growth of S. aureus, though some of these mechanisms are poorly defined. If enterotoxigenic S. aureus grow to or are initially present in a sufficiently high concentration, they may be able to produce enterotoxin in the curd/cheese. The report says further treatment of the cheese may reduce the concentration of viable cells, but the enterotoxin is likely to remain and may cause illness in consumers. There is little specific literature that addresses the contribution of raw milk cheeses to disease attributable to enterotoxigenic S. aureus, but outbreak data suggest that such disease may be more prevalent in countries such as France, where raw milk cheeses are readily available, than in countries where cheese mostly is produced from pasteurized milk. For raw milk cheeses to be produced safely with respect to enterotoxigenic S. aureus,the period for which growth and enterotoxin production can occur should be minimized, the report says. The authors note that the most significant factor in cheesemaking that will slow and/or prevent growth of S. aureus is the activity of the starter culture. They also note there is some evidence that the presence of background flora (non-starter bacteria) also may influence growth rate and enterotoxin, and therefore it is possible that growth and enterotoxin production in pasteurized milk will be faster than in raw milk which contains a significant competing flora. For the full report, visit http:// www.mpi.govt.nz/news-resources/ publications. CMN Study: Protein blend is best way to build muscle after exercising SAN DIEGO — A new study found that consuming a protein blend containing soy, whey and casein may be the best way for a person to boost their anabolic window, which is the period of time after exercise in which muscle is built. “This study confirms that consuming a blend of proteins (soy, whey and casein) vs. whey protein alone provides a prolonged delivery of amino acids to the muscles, making it optimal for consumption following resistance exercise,” says Dr. Blake Rasmussen, professor and interim chair of the department of nutrition & metabolism at the University of Texas Medical Branch and lead author of the study. “The results of this study are critical for sports nutrition consumers and regularly active individuals.” The protein blend used in the study consisted of 25 percent isolated soy protein, 25 percent isolated whey protein and 50 percent casein. Soy, whey and casein proteins are all absorbed at different rates during digestion. Whey protein is referred to as a “fast” protein because it is rapidly absorbed whereas casein, a “slow” protein, requires several hours to be digested. The ability of soy protein to deliver amino acids is “intermediate,” meaning concentrations in blood peak somewhat later compared to whey, but its digestion rate is much quicker than casein. Hence, the effect of all three of these proteins combined appears to provide the extended release of amino acid delivery to the muscles. “Your muscles don’t recover in 30 minutes. It takes at least 24-48 hours for your muscles to recover after resistance exercise,” says Greg Paul, global marketing director for sports nutrition and weight management, Solae. “This study showed that protein blends can provide amino acid delivery for up to five hours, meaning if you consume a product or protein shake with these blends, the prolonged effect will deliver essential amino acids to feed your muscles until your next meal.” This was a double-blind, randomized clinical trial in 19 young adults before and after ingestion of 19 grams of protein from the blend or 17.5 grams of whey protein. CMN United Industries is the technology leader manufacturing 100% laser-welded tubing! s%XPERIENCE3TABILITY2ELIABILITY s.OW-ANUFACTURING4UBINGUPTOv/$ s%XTENSIVE)NVENTORY!VAILABLEFOR)MMEDIATE3HIPPINGFROM /UR.EWLY%XPANDED7AREHOUSE Demanding application environments call for the highest quality tubing. It has been proven that laser-welded tubing outperforms TIG welded tubes. United Industries has been perfecting its laser welding capabilities since 1992. We are using a fourth generation laser process that has set the standard for laser welded stainless steel tubing. ,ASERWELDSARESUPERIORTO4)'WELDSINTHEFOLLOWINGWAYS s #REATESADEEPNARROWWELD s .ARROWHEATAFFECTEDZONE s -INIMALDISTORTION s 3TRAIGHTERWELD s 'REATERSTRENGTHANDDUCTILITY s &INERGRAINSTRUCTURE s -ORECORROSIONRESISTANT (ENRY!VENUEs"ELOIT7ISCONSIN 0HONEs&AX WWWUNITEDINDUSTRIESCOM STAINLESS STEEL TUBING For more information please visit www.unitedindustries.com Reprinted with permission from the July 6, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 14 CHEESE MARKET NEWS® — July 6, 2012 EVENTS Tours on tap for Wisconsin Original Cheese Festival Nov. 9-10 MADISON, Wis. — Wisconsin Cheese Originals has announced the line-up of dairy farm and creamery tours for its fourth annual Wisconsin Original Cheese Festival to be held here at the Monona Terrace Nov. 9-10. Each tour will be held Nov. 9 at a cost of $115 and is limited to 20 people. Tickets for all events go on sale in September and sell out early, so attendees are encouraged to make plans to attend early. This year’s tour lineup includes: • Driftless Cheeses of Wisconsin Tour: With its sweet soils and limestonefiltered water, southwest Wisconsin has been dubbed a dairy paradise. The tour starts at Uplands Cheese in Dodgeville, where cheesemaker Andy Hatch crafts Pleasant Ridge Reserve. The tour continues at Cedar Grove Cheese in Plain where Bob Wills has become known as Wisconsin’s chief incubator of up-andcoming cheesemakers. After lunch at the General Store in Spring Green, travel to Dreamfarm in Cross Plains to meet cheesemaker Diana Murphy and taste her farmstead goat’s milk cheeses. • Green County Cheese & Beer Experience: Travel to Green County, home to more than a dozen cheese plants in a 585-square mile area. The first stop is a tour and tasting with cheesemaker Myron Olson at Chalet Cheese Cooperative, home to world champion Baby Swiss and the only cheese factory in North America still making Limburger. The next stop is Minhas Brewery in downtown Monroe, for a tasting of its craft beers. Lunch will be at Baumgartner’s, a historic tavern. The trip continues in the afternoon at Emmi Roth USA in Monroe with a tour of the company’s aging rooms and cheese tasting in its culinary center. • Wisconsin Farmstead Dairy Backstage Pass: This tour provides a look at two of the best farmstead creameries in the state. Start with cheesemaker George Crave at Crave Brothers Farmstead Cheese in Waterloo with a tour of the cheese factory, followed by a farm tour and opportunity to get up-close-and-personal with farm cows and calves. Afterward, a cheese tasting and lunch will be held in the Craves’ new on-farm culinary center. Next stop will be Sassy Cow Creamery in Columbus for a dairy plant tour of milk bottling and ice cream making with owner James Baerwolf and a tour of the Baerwolf dairy farm. The day will end with a private cheese tasting at Fromagination in Madison, where a half dozen of Wisconsin’s farmstead cheeses will be sampled. Also scheduled for the festival is the Meet the Cheesemaker Gala with 40 Wisconsin cheesemakers on hand along with samples of 150 original cheeses. Tickets cost $29. This year attendees can purchase an all-inclusive Saturday pass providing VIP access to a full day of tasting and talking about Wisconsin artisan cheese. The pass includes a morning keynote address by Ari Weinzweig, author, owner and co-founder of Zingerman’s Community of Businesses. Also included is a lunch in the Grand Terrace, and two afternoon tasting seminars, including one pairing session. Tickets cost $85. Also featured will be Saturday Night Artisan Cheesemaker Dinners held at one of 12 participating Madison Originals restaurants. Chefs will partner with a local cheesemaker and host a threecourse dinner. Tickets cost $75. Tickets for the Nov. 9-10 events go on sale to members of Wisconsin Cheese Originals Sept. 17, with remaining tickets available to the public Sept. 24. Visit www.wicheesefest.com to register or learn more. CMN Wisconsin Farm Bureau Foundation to hold annual golf outing Sept. 10 COTTAGE GROVE, Wis. — The 15th annual Wisconsin Ag Open hosted by the Wisconsin Farm Bureau Foundation will be held here Sept. 10 at the Oaks Golf Course. All proceeds from the event will benefit education and leadership programs such as Ag in the Classroom, 4-H, FFA, Farm Bureau Institute, Leadership Wisconsin and Young Farmer and Agriculturist. The Wisconsin Ag Open begins with a shotgun start at 10:30 a.m. An awards program, appetizers and prizes will follow the game. Registration is $100 and includes 18 holes of golf with cart rental, lunch, appetizers, contests and door prizes. Sponsorships also are available, ranging from $50 to $2,000. The registration deadline is Aug. 10. Register by contacting Darlene Arneson at darneson@ wfbf.com, 608-828-5719, or download a registration form at www. wfbf.com. CMN Specialty Membranes for Dairy Applications Process and Polisher RO, 10K 5K UF and MF Membranes Milk and Whey Protein Concentration. Milk Solids Concentration, Preconcentration and Permeate Polishing Toray offers a selection of leading-edge membrane elements applying latest innovations in membrane chemistry and element construction techniques for use in dairy applications ranging from Microfiltration and Ultrafiltration to Reverse Osmosis. Toray dairy process products are: USDA Accepted, 3A/FDA compliant. Made in America Innovation. Quality. Expertise. Contacts: Madalyn Epple ph. 952 470 0522 [email protected] Lee Telin ph. 715 205 5991 [email protected] Mark Chilton Toray Representative Europe ph. +44 (0) 7793 287 505 [email protected] Toray Membrane USA Lee Durham Global Product Line Manager 13435 Danielson Street Poway, CA 92064 ph. 858 248 5173 [email protected] For more information please visit www.toraywater.com Reprinted with permission from the July 6, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com July 6, 2012 — CHEESE MARKET NEWS® 15 NEWS/BUSINESS FireFly Farms benefits from investment fund that supports sustainable, local agriculture Survey finds vanilla is most popular ice cream; frozen yogurt surges in popularity FORT LAUDERDALE, Fla. — Community Capital Management Inc., on behalf of its flagship fund, the CRA Qualified Investment Fund CRA Shares, recently invested $4.1 million in a Small Business Administration (SBA) pool that includes a loan to FireFly Farms, a producer of cheese in Accident, Md., that uses agriculturally sustainable, locally-sourced fresh goat’s milk and traditional methods of goat cheesemaking. “FireFly Farms is a great example of how the CRA Qualified Investment Fund, through its purchase of this SBA pool, is helping finance sustainable small businesses to help create jobs, provide access to capital and increase the supply of locally-sourced food,” says senior portfolio manager Barbara VanScoy. “We are committed to helping expand the scope of traditional community development as it continues to evolve by investing in bonds that finance a variety of initiatives WASHINGTON — Vanilla is the most popular ice cream flavor, premium ice cream is the best-selling type of ice cream and frozen yogurt is surging in popularity among Americans, according to an International Ice Cream Association (IICA) survey. Of the ice cream and frozen novelty companies participating in the survey, 92 percent said that vanilla is the most popular flavor among their consumers. Chocolate chip mint and cookies-andcream ice cream tied for second place. Nearly 70 percent of respondents cited premium ice cream as the most popular product, while 10 percent said that novelties — separately packaged single servings of a frozen dessert — are most popular. While survey participants noted a strong demand for premium ice cream and novelties, 52 percent said they are seeing increased demand for frozen yogurt. Nearly 15 percent of responders said they are also seeing an increased demand for no-sugar-added ice cream. When asked about inclusions, which are ingredients added to ice cream, the majority of companies surveyed said that from healthy communities to sustainable agriculture to ecosystem restoration.” The loan to FireFly Farms was authorized under the SBA’s 7(a) Loan Guaranty Program, which was established to serve small business borrowers that cannot otherwise obtain private sector financing under suitable terms and conditions. FireFly Farms also is located in a moderate-income census tract and a “Historically Underutilized Business Zone” (HUBZone). The HUBZone program helps small businesses in urban and rural communities gain preferential access to federal procurement opportunities. Community Capital Management says its primary goal is to produce above-average, risk-adjusted returns while providing added diversification and simultaneously having a positive impact on the community and environment. For more information, visit www.ccmfixedincome.com. CMN Fonterra opens innovation center in China SHANGHAI, China — Fonterra recently announced the opening of a new innovation center in Shanghai, China, as part of the cooperative’s strategy to help fill China’s fast-growing demand for top quality dairy nutrition. “Demand for dairy nutrition is expected to double by 2020 and the way people consume dairy will change,” says Theo Spierings, Fonterra CEO. “The opening of the state-of-the-art Shanghai Innovation Centre will help us build and grow beyond our current product offerings and better meet the needs of local Chinese consumers and customers.” In particular, Spierings says, the center will focus on developing unique products and formats that tap into growing dairy consumption trends in China by leverag- ing Fonterra’s dairy protein research and development capacity in New Zealand. “As incomes rise across China, people are looking for nutrition that supports the health of their families, particularly young children, and dairy is one of the most nutritious foods there is,” he says. “People’s lives are also becoming busier, which means they are often looking for dairy products that they can eat on the go or use to make quick, easy and nutritious meals.” The new Shanghai Innovation Centre also will allow Fonterra to work more closely with major customers in the foodservice industry, carrying out a number of product training courses, helping to deepen customers’ technical knowledge and develop innovative recipes to meet consumers’ needs. CMN pecans are the most popular nut, and strawberries are the most popular fruit added to their frozen products. Sixty percent of the participating companies named pecans most popular, and 32 percent cited peanuts as most popular with their consumers. More than threequarters of respondents named strawberries as the top fruit, while 12 percent said cherry and another 12 percent named raspberries as the favorite fruit inclusion. Among novelties, the ice cream sandwich is most widely made; 91 percent of participating companies make and market ice cream sandwiches. Nearly 75 percent of the companies responding offer an ice cream cone novelty. Bars, sticks and mini-cups are also popular products, according to the survey. Approximately 1.53 billion gallons of ice cream and related frozen desserts were produced in the United States in 2011. The ice cream industry generated total revenues of $10 billion in 2010 in the United States. Take-home ice cream sales represented the largest section of the market, generating revenues of $6.8 billion or 67.7 percent of the market’s overall value. CMN Sanitation and so much more... ProChemicals can maximize your profits by providing you with the best possible sanitation programs at the most reasonable cost. The quality of your sanitation program isn’t measured in dollars. You measure it in product quality, down time, environmental concerns and labor costs. Product Categories ■ ■ ■ ■ s s s s s s s s s s s s 4 Generations in the Cheese Business Food Ingredients Commodity Chemicals Acids Alkaline & Chlorinated Alkaline Caustics Defoamers General Cleaners Hand Sanitizers Sanitizers Membrane Cleaners Laundry Detergents Conveyor Lubricants Let’s talk about the “PRO-ACTIVE” approach in your plant! Providing These Plant Solutions: Let our Food Quality Specialists individualize a program for your plant. s s s s s s Establishing Cleaning Procedures Employee Training Cleaning Equipment Recommendations Program Monitoring Inventory and Cost Controls ProChemicals www.novakscheese.com For more information please visit www.novakscheese.com "RIDGE3TREETs'REEN"AY7) s&AX www.prochemicals.com For more information please visit www.prochemicals.com Reprinted with permission from the July 6, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 16 CHEESE MARKET NEWS® — July 6, 2012 NEWS/BUSINESS Study: Dairy products may help prevent mental decline, offer irreplaceable health benefits By Aaron Martin MADISON, Wis. — Milk consumption has long been regarded as an effective way to receive essential nutrients and improve cardiovascular and bone health. However, recent studies have found that dairy products also may improve overall brain function and offer other health benefits. Drinking just one glass of milk a day had a substantial impact on overall brain function in a five-year study of more than 900 men and women that was conducted by researchers at the University of Maine and University of South Australia. The dietary research segment of the Maine-Syracuse Longitudinal Study was led by Georgina Crichton, a doctoral student in nutrition and psychology at the University of South Australia, in collaboration with University of Maine psychologist/epidemiologist Merrill Elias, and psychologists Michael Robbins and Gregory Dore. The study’s 972 participants, ranging from age 23-98, were screened for stroke, dementia and kidney disease before participating in eight brain tests, including visual-spatial, working memory and verbal memory tests. Researchers concurrently measured the participants’ dairy consumption and found that adults of all ages with higher intakes of milk and dairy products scored significantly higher on memory and other brain function tests than those who consumed little or none, according to a study summary published in the International Dairy Journal in January. The study found that milk drinkers were five times less likely to fail the tests than non-milk drinkers. Researchers concluded that nutrients in milk may have a direct effect on brain function and that easily implemented lifestyle changes — such as higher dairy consumption — may have potential to slow, or even prevent, !"#$%&'() *'+,-(&.$/#.)'0$12$3456 2012 Dairy Ingredient Seminar October 2 & 3, 2012 ~ Cliffs Resort, Shell Beach, CA Join industry representatives as they discuss current trends & future developments affecting the U.S. and global dairy markets for cheese, whey proteins, permeate, dry milk and butter products. NEW TO THE AGENDA: This year’s agenda also includes the end-users perspective! Representatives from companies including Starbucks and Nestle will be on-hand to dicuss their views on purchasing ingredients. 2012 Technical Symposium Optimizing Quality & Expanding Applications October 23 & 24, 2012 ~ Sheraton Raleigh Hotel, Raleigh, NC Don't miss presentations by MaryAnne Drake, Allen Foegeding and Dave Barbano highlighting: !" Critical control points for optimizing flavor in dried ingredients and ingredient applications. Includes hands-on sensory analysis of proteins and beverages !" The latest updates on whey bleaching, bleaching parameters and bleaching alternatives !" Expanding protein functional properties. Includes hands-on sensory analysis of applications !" Membrane fractionation of milk and whey components, MF to UF Visit www.adpi.org for complete meeting details including online registration, agendas and hotel information! 116 N. York St., Suite 200, Elmhurst, IL 60126 Ph: (630) 530-8700 ~ Fax: (630) 530-8707 Email: [email protected] ~ www.adpi.org For more information please visit www.adpi.org neuropsychological dysfunction. “The reality is that dairy has many benefits in those who are not restricted from consumption for health reasons,” Elias says. “We have learned in recent years that components of dairy — calcium, whey protein, vitamin D and magnesium — may play a role in reducing levels of obesity, diabetes and hypertension. Now we know that eating dairy also is positively associated with cognitive functioning.” More than a third of study participants reported consuming milk products daily, and more than half reported consuming dairy two to six times a week. Cheese was the most popular dairy product among participants, and nearly a third of participants reported drinking milk each day. Gregory Miller, president of the Dairy Research Institute and executive vice president of the National Dairy Council, says the study’s findings are interesting. “It’s an interesting conclusion, in particular, the linear response between increased consumption of dairy foods and higher scores on cognitive tests they were doing at each level,” he says. “People at the higher end of consumption tested the highest.” Subjects who reported consuming more than one serving of milk or dairy products daily scored the highest in all mental tests compared to those with lower or more infrequent milk intake, the researchers found. Miller says that since nutrients in dairy products were already known to perpetuate a host of health benefits — including improved blood pressure, cardiovascular health and metabolic health — it’s not surprising that consumption of dairy products also could have neurophysical benefits. Still, more studies need to be conducted to support the study’s findings. “All the studies that have been done to date are observational studies,” Miller says. “They’re very interesting, but they’re not cause-and-effect studies, they’re not clinical.” Researchers in the Maine-Syracuse Longitudinal Study also acknowledge that while consistency in the results is promising, more research needs to be conducted. “In this study, frequent dairy food intake was associated with better cognitive performance,” says Crichton. “(But) measurement of dairy food consumption needs to be specific in terms of type, fat content and quantity of intake.” Researchers also note other limitations of the study. They were unable to determine the specific number of times subjects consumed dairy foods beyond “once a day.” Participants also were asked “how often do you eat the following foods,” but not questioned as to portion or serving size. “This undoubtedly limits the accuracy of the estimated intakes of all foods and beverages as quantities are likely to Turn to STUDY, page 17 Reprinted with permission from the July 6, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com July 6, 2012 — CHEESE MARKET NEWS® 17 NEWS/BUSINESS New research from Sweden suggests eating lowfat dairy foods may reduce risk of stroke DALLAS — Swedish research found that participants of a 10-year study who consumed lowfat dairy products were at a lower risk of stroke than participants who consumed full-fat dairy products, according to a summary of the study published in the American Heart Association’s journal. Among 74,961 study participants ranging from age 45-83, those who ate lowfat dairy foods had a 12 percent lower risk of stroke and a 13 percent lower risk of ischemic stroke than those who ate high-fat dairy foods. Participants who were screened for heart disease, stroke and cancer completed a 96-item food and beverage questionnaire to determine dietary habits. Food and drink consumption frequency was divided into eight categories, ranging from never to four servings per day. “This is the largest study to date to examine the association between STUDY calcium, potassium, phosphorus, magnesium and zinc,” researchers wrote in a study summary published in the journal Nutrition Research. Removing a dairy serving or completely eliminating dairy foods from the diet would have significant consequences for those who already have inadequate nutrient intakes. Non-dairy calcium replacement foods would not fill those nutrient gaps, the study found. The data was collected through the U.S. National Health and Nutrition Examination Survey, which recorded nutrient intake data for 16,822 individuals older than two over a three-year span. The data showed that dairy consumption in the United States consisted mainly of white milk, mixtures containing dairy products and cheese. However, the survey finds that many Americans fall short of achieving recommended intakes of dairy products and many nutrients the provide, including calcium, vitamin D and potassium. Researchers in the Maine-Syracuse Longitudinal Study also note that milk consumption has decreased worldwide in recent years. In the United States, the trend has coincided with a dramatic increase in soft drink consumption. Marketing the nutritional benefits of milk and dairy products uncovered in recent studies could help bolster the public’s overall health and fuel consumption of dairy products. Miller says it’s important to continue educational campaigns that promote the recent findings and draw attention to healthy food options rather than merely unhealthy food options. “Dairy provides a unique combination of nutrients not naturally found in other food or beverage choices, and each serving helps meet important nutrient recommendations at every stage of life,” says Miller. “Over the last couple of decades, nutrition guidance has mostly centered on telling consumers what to avoid — sodium, certain fats, added sugars — and I think turning the paradigm toward choosing nutrient-rich foods rather than nutrient avoidance is a critical step toward improving the quality of the American diet. Miller notes that it’s often difficult to promote metabolic health advantages from a marketing perspective, but he says it’s vital for the dairy industry to use every tool at its disposal to do so. CMN Continued from page 16 differ substantially amongst individuals as well as the same individual on different occasions,” says Crichton. Also, with the exception of milk, participants did not report the fat content of dairy foods consumed. “We were therefore unable to assess whether fat content was a relevant factor in the associations found, or compare our findings to others who have shown such relationships,” researchers conclude. While more research is needed to establish the connection between brain health and dairy consumption — a separate study recently found that milk and other dairy products offer more — irreplaceable — nutritional benefits. The study, co-founded by the National Dairy Council and Dairy Research Institute, used food pattern modeling and the National Health and Nutrition survey to conclude that nondairy substitutes for calcium in a diet can lead to lower levels of protein, phosphorous, riboflavin, zinc and vitamin B12. “In reality, nondairy alternatives are not a nutritionally equivalent substitute for dairy foods,” says Erin Quann, Ph.D., a co-author on the published review and director of regulatory affairs for Dairy Research Institute. “Similar to the conclusion made by the Dietary Guidelines Advisory Committee, our study showed that substituting dairy with other sources of calcium like fortified soy beverage, fortified orange juice, leafy greens and bony fish, can be unrealistic substitutions, since some of these foods are rarely consumed and in some cases a large amount would be required to get the same nutrients provided by dairy foods.” The study profiled various diets based on energy content to assess the nutritional impact of removing or adding an 8-ounce dairy serving, completely removing dairy from diets or using daily replacement foods such as calcium, vitamin-fortified soy drinks and leafy greens. “The dairy food group (milk, cheese and yogurt) contributes substantial amounts of many essential nutrients to the diet, including protein, vitamins A, D and B12, riboflavin, and minerals consumption of total, lowfat, full-fat and specific dairy foods and the risk of stroke in adult men and women,” says Susanna Larsson, Ph.D., the study’s author and associate professor of epidemiology at the Karolinska Institute in Stockholm, Sweden. “From a public health perspective, if people consume more lowfat dairy foods rather than high-fat dairy foods, they will benefit from a reduced risk of stroke and other positive health outcomes.” The benefits of lowfat dairy foods are likely due to lower fat content and the vitamins and minerals it contains: calcium, potassium, magnesium and vitamin D. “It is possible that vitamin D in lowfat dairy foods may explain, in part, the observed lowered risk of stroke in this study because of its potential effect on blood pressure,” Larsson says. Low-fat dairy food is one part of the Dietary Approaches to Stop Hypertension (DASH ) diet, which reduces blood pressure. High blood pressure is a major risk factor for stroke. More research on the link between low-fat dairy consumption and risk of stroke is needed, Larsson adds. CMN Arla signs supply agreement with Chinese baby formula company to secure capacity AARHUS, Denmark — Arla Foods recently announced that it has entered a 10-year financing and supply agreement with Biostime International Holdings Ltd., a provider of high-end pediatric nutritional and baby care products in China. Arla is now the third European supplier of Biostime in the area of infant formulas. The agreement is designed to secure production capacity for Biostime at Arinco, Arla’s largest infant formula production facility in Denmark, which is equipped with full formula spray-dry technology and uses Arla’s Danish milk. The 10-year agreement includes co-financing an investment in a possible upgrade and extension of Arinco’s capacity to secure a yearly capacity of 20,000 metric tons of infant formula powders for Biostime by 2015. CMN Automatic Exact Weight Cheese Cutter 3001 AEW Tu-Way Featuring: Patented Cutting Head Fully Automated Cut Adjustment Continuous Feed System Minimal Floor Space Needed PUTTING YOU FIRST SINCE 1949 Phone: 1-888-243-6622 or 1-920-458-2189 E-mail: [email protected] Web: www.genmac.com IMPROVE YOUR PRODUCTION WITH GMC CUTTERS For more information please visit www.genmac.com Reprinted with permission from the July 6, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 18 CHEESE MARKET NEWS® — July 6, 2012 NEWS/BUSINESS Rabobank projects ‘slow squeeze’ in fourth quarter of 2012 in latest global dairy report FCSTONE FRESNO, Calif. — A slow squeeze in the world dairy market in the fourth quarter is likely to start reducing pressure on U.S. dairy producers through the rest of 2012, with price recovery expected to gain in early 2013, according to the latest quarterly global dairy report from Rabobank’s Food & Agribusiness Research and Advisory (FAR) group. According to the report, in 2012 producer milk prices in the U.S. have fallen below breakeven levels due to a wave of growth in the global milk supply. This substantial global price reduction has led to financial difficulties for producers who have not locked in their feed purchases or who do not grow their own feed. production will reach 202.9 billion pounds. According to USDA, the number of dairy cows in the United States reached 9.19 million in 2011, and is estimated to reach 9.24 million in 2012 and drop to 9.17 million in 2013. FCStone projects the number of dairy cows will reach 9.23 million in 2012 and drop to 9.19 million in 2013. USDA estimates milk per cow will average 21,890 pounds in 2012 and 22,100 pounds in 2013, while FCStone forecasts milk per cow levels will average 21,745 pounds in 2012 and 22,088 pounds in 2013. FCStone estimates block cheese prices at the Chicago Mercantile Exchange (CME), which averaged $1.8064 per pound in 2011, will average $1.6306 per pound in 2012, and $1.7615 per pound in 2013. CME butter prices, which averaged $1.9618 per pound in 2011, are forecast to average $1.5433 per pound in 2012 and $1.6800 per pound in 2013, according to FCStone. USDA forecasts Class III milk prices will average $15.95 per hundredweight in 2012 and $16.29 per hundredweight in 2013, while FCStone forecasts an average of $16.54 in 2012 and $17.71 in 2013 for Class III prices. Looking forward, Chesler notes key areas to look at include weather patterns, weakness in China that may affect demand, economic uncertainty in the United States, and U.S. politics and dairy policy reform. • Weather outlook Drew Lerner, president and owner of World Weather Inc., during the conference provided an overview of domestic and global weather conditions and projections. Due to dry conditions across much of the United States, range and pastureland conditions have been deteriorating quickly, Lerner says. “In the past four weeks, most areas from the Rocky Mountain region through the Central Plains to the heart of the Midwest and the states from Missouri to Louisiana have seen substantial declines in field conditions,” he says. Lerner adds that topsoil moisture ratings in the “short” and “very short” categories have skyrocketed recently from the Central and Southern Plains into the Midwest because of poor rainfall and warm temperatures. “It has been a long time since soil moisture has been so limited this early in the summer season,” he says. “July and August will have to be notably wetter to reverse the trends.” However, Lerner forecasts a developing El Niño pattern could provide cooler, wetter forecasts for mid-July through August for the Midwest and Plains regions. In the report Rabobank also outlines the expectation that global supply growth will lose momentum in coming months as farmers outside the United States see a further reduction in milk prices and unusually favorable weather reverts to more consistent patterns. Global demand is expected to remain lackluster in the face of a weak global economy and recovery being slowed by significant but not alarming stocks, the report says. As 2012 progresses and the condition of the international market improves, there should be a slow recovery in milk prices for farmers in the U.S., Rabobank says, adding that there also is the prospect of an acceleration of that improvement in early 2013. CMN Glanbia plc, Glanbia Cooperative Society continue discussions about joint venture KILKENNY, Ireland — Glanbia plc, the global nutritional solutions and cheese group, recently confirmed that it continues to engage in constructive discussions with its majority shareholder, Glanbia Cooperative Society Ltd. (“the society”) to create a joint venture where Glanbia plc would hold 40 percent of and the society 60 percent of Glanbia’s Irish dairy processing business, Dairy Ingredients Ireland. Dairy Ingredients Ireland is a business unit of the Dairy Ireland division of Glanbia and is the largest dairy ingredients processor in Ireland. The purpose of the proposed new joint venture will be to facilitate the continued development of the existing global dairy ingredients business, including the flexibility to expand milk processing capacity after the EU milk quotas are abolished in 2015. For any new processing capacity to be ready for 2015, a planning application needs to be submitted in early July. Therefore, Glanbia says it is finalizing an option to purchase a site at Belview in Kilkenny County, Ireland, from the country’s industrial development agency. Any new development is contingent on the final outcome of the ongoing discussions about the joint venture. Glanbia says considerable progress has been made with the proposed transaction, though it expects the discussions will not be concluded before the end of August. CMN Cheese Packing Lines For more information please visit www.zepnick.com Continued from page 1 He adds that there also may be a switch to drier weather in the Southeastern states later this summer. • Policy discussion The conference also featured a panel discussion on dairy policy featuring comments from Liam Fenton, managing director, FCStone Europe; Edward Gallagher, president of dairy risk management services, a division of Dairy Farmers of America (DFA); and Bob Yonkers, vice president and chief economist for the International Dairy Foods Association (IDFA). The discussion largely centered on dairy policy reform, particularly on the 2012 Farm Bill passed by the U.S. Senate last month and a controversial supply management program included in the Senate version of the bill. Gallagher notes that there has been a lot of misunderstanding about how the supply management program, the Dairy Market Stabilization Program (DMSP), works. DFA, a member of the National Milk Producers Federation (NMPF), support DMSP’s inclusion in the farm bill. “The bottom line is, commodity price volatility will continue, and it will not change no matter what dairy policy is implemented,” he says. On the other hand, IDFA is very opposed to inclusion of DMSP or any type of supply management program in dairy policy reform. “Ed and I agree on probably 80 percent of the farm bill, just not DMSP,” Yonkers says. “IDFA does not believe the government should control milk production.” Yonkers notes that at least one amendment that is likely to be offered in the U.S. House version of the farm bill, scheduled for mark up next week, would not tie margin protection insurance to DMSP, as it does in the Senate version. Gallagher notes that the margin insurance program in the Senate bill is voluntary, but those who participate must also participate in DMSP. “Right now we have members losing money because some of the extra milk can’t get into a plant,” he says. “Under DMSP, some of that milk wouldn’t have been produced.” Yonkers countered that point with, “If you don’t choose to take the margin insurance, you don’t have a safety net.” He adds that he is concerned agricultural lenders may require producers to participate in the program to get a loan. Both Yonkers and Gallagher agree that the true outcome of a supply management program is difficult to project without knowing what the enrollment level will be. Yonkers also notes that the industry may not even see a farm bill passed in an election year. “When a new Congress begins in January, any bills not signed into law are gone, and they must start from scratch,” he says. CMN Reprinted with permission from the July 6, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com July 6, 2012 — CHEESE MARKET NEWS® 19 NEWS/BUSINESS FARRM Continued from page 1 jeopardize one of the economic bright spots in the fragile U.S. economy. “The legislation released today brings us yet another step closer to achieving this goal and I am pleased to have worked with the chairman in this effort,” he says in a statement released yesterday. “We have a commodity title in place that will work for all parts of the country as well as continued support for the sugar program and my Dairy Security Act.” The House Agriculture Committee will consider the legislation July 11, and Peterson says if House leadership then brings the bill to the floor, it is expected to be finished in September. The Senate passed its version of the 2012 Farm Bill June 21. (See “Senate Passes 2012 Farm Bill; focus now shifts to U.S. House” in the June 22, 2012, issue of Cheese Market News.) For the dairy sector, FARRM replaces outdated subsidy programs with a new, OUTPUT Continued from page 1 2012 production was down 1.8 percent from April 2012 production on a daily average basis. Mozzarella production in May totaled 301.5 million pounds, down 2.1 percent from a year earlier. Total Italian-type cheese production, of which Mozzarella is the largest component, was 384.4 million pounds, down 2.2 percent from May 2011. NASS reports Cheddar production totaled 278.0 million pounds in May, down 2.0 percent from a year earlier. Total American-type cheese production, of which Cheddar is the largest component, was 375.9 million pounds, up 0.9 percent from a year earlier. Gouda production saw the largest percentage increase in the May-to-May comparison, jumping 381.8 percent to 5.9 million pounds produced in May 2012. Wisconsin led U.S. cheese production in May with a total of 228.4 million pounds, up 2.3 percent from its production a year earlier. California followed with 193.9 million pounds, down 1.5 percent from May 2011. The next four cheese-producing states were Idaho with 70.8 million pounds, down 0.1 percent from its production a year earlier; New Mexico with 65.7 million pounds, up 3.7 percent; New York with 60.0 million pounds, down 0.5 percent; and Minnesota with 54.1 million pounds, down 2.2 percent. NASS reports U.S. butter production totaled 163.3 million pounds, up 4.8 percent from May 2011 but down 3.8 percent from April 2012. When adjusted for the length of the months, May butter production was down 6.9 percent from April 2012 on a daily average basis. California led the nation’s butter production with 59.7 million pounds, up 6.1 percent from May 2011. CMN voluntary risk management safety net for dairy producers. Dairy producers will have the option to sign up for the basic margin program to help manage risk when milk prices and feed costs converge. Producers who sign up for the margin program would be subject to supply management controls, and funds collected by this program will be used by USDA to purchase surplus dairy products for food bank donations and other programs. The two main components of the program will be margin protection and a market stabilization program designed to manage milk supply. A base level of margin protection covers 80 percent of production history when the margin falls below $4.00 for a consecutive two-month period. The producer also will be able to purchase additional supplemental coverage. In addition to creating this new voluntary risk management program, FARRM reauthorizes three programs: the Dairy Forward Pricing Program, the Dairy Indemnity Program and the Dairy Promotion and Research Program. It eliminates four programs: the Dairy Product Price Support Program, the Milk Income Loss Contract (MILC) program, the Dairy Export Incentive Program and the Federal Milk Marketing Order Review Commission. The International Dairy Foods Association (IDFA) says the dairy market stabilization program in this bill will raise consumer prices, hurt exports and stifle investments in new facilities. “IDFA is disappointed that the Dairy Market Stabilization Program has been included in the House Agriculture Committee Chairman’s mark of the farm bill,” says Jerry Slominski, senior vice president for legislative and economic affairs, IDFA. “The stabilization program is designed to limit milk supplies and to periodically raise milk prices. It will reduce dairy farmers’ incomes at the same time that a new subsidized revenue insurance plan enhances their incomes.” IDFA says it urges the committee to provide revenue or margin insurance for dairy farmers without also mandating that they participate in the stabilization program. The National Milk Producers Federation (NMPF) says the bill reflects the best possible outcome for U.S. dairy farmers, which are in need of a better federal safety net. “The bill allows dairy farmers to better manage their risks in a deliberate approach that offers a superior safety net, reduces government involvement in our industry and positions our entire industry to compete in a global marketplace,” says Jerry Kozak, president and CEO, NMPF. “It saves money compared to existing programs and will be affordable and convenient for farmers to use.” For a summary of the FARRM dis- cussion draft, visit http://agriculture. house.gov/pdf/FARRM_Summary.pdf. To read the full draft, visit http:// agriculture.house.gov/pdf/legislation/ FARRMDiscussionDraft.pdf. CMN Recall issued for Andante cheeses SACRAMENTO, Calif. — Multiple lots of cheese made by Andante Dairy in Petaluma, Calif., are the subject of a recall and quarantine order announced by California State Veterinarian Dr. Annette Whiteford July 3. The quarantine is based on a determination that a lack of proper pasteurization could have allowed dangerous pathogens to survive in the products. No illnesses have been reported, and the processor is cooperating with the recall, says California Department of Food and Agriculture (CDFA). The recalled cheeses were sold in sizes from 5 to 8 ounces, with no code date or variety information on the packages. The cheeses were sold mainly to retail markets, restaurants and cheese shops in California, with very limited distribution in Chicago and New York. Three varieties of Andante Dairy cheese exempt from the quarantine are Mussette, Tomme Dolce and Etude. Consumers have been urged to discard any other varieties. CMN Reprinted with permission from the July 6, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 20 CHEESE MARKET NEWS® — July 6, 2012 NEWS/BUSINESS Louis Dreyfus Commodities signs agreement to acquire Ecoval global dairy trading company GENEVA — Louis Dreyfus Commodities (LDC), a Swiss-based global commodities trader, recently signed an agreement to purchase all outstanding shares of the Dutch-based dairy trading group Ecoval. Ecoval is a privately-held international dairy trading company with presence in the international trade flows of a broad range of dairy products and derivatives. It has more than $656 million in global turnover in 2011 and handles approximately 551 million pounds of dairy products. Ecoval has offices in the Netherlands, the United States, Australia, Argentina, China, Poland and Belgium. LDC is a global agri-commodities group with a portfolio that includes oilseeds, grains, rice, freight, finance, juice, cotton, coffee, sugar, metals, dairy, fertilizers, and sugar and ethanol mills Listeria warning issued over Mexicali cheese ALBANY, N.Y. — New York State Agriculture Commissioner Darrel Aubertine recently warned consumers in the metropolitan New York area not to consume certain “Queso Fresco, Fresh Cheese” products made by Mexicali Cheese Corp., Woodhaven, N.Y., due to possible Listeria contamination. The product is packaged in a rigid 14-ounce plastic tub that displays the plant number 36-0128 and a code of 071512. This consumer warning includes all packages with this code. The product was packaged in containers with the following product names: Mexicali Queso Fresco Mexicano, Mexican Style Fresh Cheese; or Acatlan Queso Fresco, Fresh Cheese. A routine sample of the cheese, taken June 20 by an inspector from the New York Division of Milk Control and Dairy Services subsequently was tested by the department’s food laboratory and discovered to be contaminated with Listeria monocytogenes. On June 25, the manufacturer was notified of a preliminary positive test result and voluntarily recalled the product from their customers. Test results were confirmed on June 29. More samples will be taken to verify that the product is free of pathogens. To date, no illnesses are known by the department to be associated with this product. CMN businesses. It has offices in more than 55 countries. “This acquisition is a significant step for the development of LDC’s dairy platform and will elevate us to be an important player in the global trade markets for a diverse portfolio of dairy products,” says Ciro Echesortu, global chief operating officer, LDC. “It also fits LDC’s strategy for sustainable growth by expanding our role in the marketplace and further diversification.” The transaction is expected to close later this year, and completion of the transaction remains subject to customary closing conditions and will exclude certain inactive subsidiaries. CMN Danone acquires majority of Centrale Laitière PARIS — Danone recently announced it has become the majority shareholder of Morocco’s leading dairy product company, Centrale Laitière, after raising its share of 29.2 percent to 67.0 percent of the company. Centrale Laitière boasts nearly 60 percent of the dairy market in Morocco and has annual sales of approximately $755 million in the fast-growing market, operating the country’s largest distribution platform with 30 storage hubs serving 70,000 points of sale. Centrale Laitière sells Danone brands including Yawmy, Moufid and Activia in Morocco. The transaction represents a key step in Danone’s development in Morocco, the company says, and will allow Danone to invest more in a market with major potential and support growth of the local dairy industry. The move also confirms strategic appeal of markets in North Africa for Danone. The acquisition is subject to the approval of relevant authorities and is expected to be finalized by the end of the year. With its new majority interest, Danone will fully integrate Centrale Laitière into its consolidated accounts, and the transaction will be accretive for Danone net earnings per share from the first year. CMN Dairy Goddess chocolate milk is recalled, quarantined due to improper pasteurization SACRAMENTO, Calif. — “Cream Top Chocolate Milk” made by Dairy Goddess of Lemoore, Calif., is the subject of a recall and quarantine, the California Department of Food and Agriculture (CDFA) recently announced. The quarantine order came following a determination that a lack of proper pasteurization could have allowed dangerous pathogens to survive in the milk. No illnesses have been reported, and the producer is cooperating with the recall. CDFA is strongly urging consumers to dispose of any product remaining in their refrigerators with a code date of July 11, 2012. Dairy Goddess reports that the recalled chocolate milk was marketed only at farmers’ markets in San Luis Obispo and Clovis, Calif. It was sold in 8-ounce, 1-quart and half-gallon sizes. CMN YOUR SOURCE FOR MATERIAL HANDLING PRODUCTS Containers, Utility Carts, Tilt Trucks, Waste Containers, Platform Trucks and more! 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E1921 County Rd J • Kewaunee, WI 54216 • Fax: (920) 863-6485 • Email: [email protected] For more information please e-mail [email protected] • HELP WANTED 7 • HELP WANTED 7 For more information please visit www.whalenfoodsinc.com BIG REWARD OFFERED FOR YOUR... For more information please visit www.organicvalley.coop • Cheese Trim • Cheese Fines • #1 and Undergrades • Close Coded Products • Natural, Processed, Imitation or Flavored Call Dean, Eric or Jesse: (877) 914-5400 For more information please call 877-914-5400 For more information please visit www.nasonvilledairy.com • STORAGE 13 DOJ paper reviews antitrust workshops WASHINGTON — The U.S. Department of Justice (DOJ) recently published a paper detailing what was learned at and what could come out of a series of workshops the DOJ Antitrust Division hosted with USDA in 2010 that explored competition in the agricultural sector. (See “USDA, DOJ workshop on dairy looks at competition, pricing” in the July 2, 2010, issue of Cheese Market News.) The paper says a clear lesson of the workshops is that antitrust enforcement has a crucial role to play in fostering a healthy and competitive agricultural sector. A number of participants, including Antitrust Division staff and leaders, stressed the importance of vigorous antitrust enforcement and detailed the ways anticompetitive mergers and conduct can harm producers, consumers and other, the paper says. During public comments at the dairyfocused workshop held in Madison, Wis., one observer characterized the division’s case challenging Dean Foods’ acquisition of plants from Foremost Farms as an anomaly, saying there have been “a lot of mega-mergers” that “have allowed a lot of concentration of market power.” The commenter finds it “appalling that our antitrust enforcement has not been more vigorous than it has been in the past.” Also during this workshop, the paper notes that a panelist in Wisconsin charged that “merger policy has been broken for 10 years, if not 20 or 30.” In addition to concerns over anticompetitive mergers, the paper notes that other recurring issues brought up at the workshops were high market concentration, monopsony power (market power on the buying side of a market as compared to market power on the selling side of a market), price levels, lack of capital, contracting, market transparency and captive supply, market manipulation, and genetically-modified seeds. DOJ says in the paper that farmers, ranchers and others in the U.S. agriculture sector are meeting the many challenges discussed during the workshops with vigor and resolve. For example, the paper says, they are thinking about ways to add value to their products, exploring new marketing channels and considering ways to open new markets. The DOJ Antitrust Division “emerges from the workshops better prepared and rededicated to fulfilling its important role in fostering a healthy and competitive agricultural sector,” the paper says. The insights from the agricultural sector gathered at the workshops has given division staff and leadership a better understanding of how agricultural marketplaces function, as well as a greater appreciation of the types of anticompetitive practices that can impact those marketplaces, DOJ notes, adding that this knowledge already has enhanced its enforcement efforts as seen in recent investigations and cases. Formoreinformation,visitwww.justice. gov/atr/public/reports/283291.pdf. CMN Reprinted with permission from the July 6, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com July 6, 2012 — CHEESE MARKET NEWS® 23 NEWS/BUSINESS CWT assists with 14 cheese export bids ARLINGTON, Va. — Cooperatives Working Together (CWT) has accepted 14 requests for export assistance from Agri-Mark, Bongards, Dairy Farmers of America, Darigold and Foremost Farms to sell a total of 2.2 million pounds (984 metric tons) of Cheddar and Monterey Jack to customers in Asia-Pacific, North Africa, Central America and the Middle East. The product will be delivered July through October 2012. Reading, writing and dairy In 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack and Gouda totaling 66.3 million pounds and butter and anhydrous milkfat totaling 45.2 million pounds to 32 countries on four continents. CWT will pay export bonuses to the bidders when delivery of the product is verified by the submission of the required documentation. CMN Adam Smith of Cowgirl Creamery named winner of 2012 Cheesemonger Invitational LONG ISLAND CITY, N.Y. — Adam Smith of the Cowgirl Creamery Cheese Shop in Washington, D.C., was named top cheesemonger, taking home a $1,000 cash prize, at the 3rd Annual Cheesemonger Invitational here June 23. Competitors from 40 cheese shops across the United States went through a preliminary round where they took a multiple choice test of cheese facts and general knowledge, showed off their palate knowledge by determining milk types, categories and ages of cheese samples with rind, and were judged on their cheese handling, sign creation and general salesmanship skills. The top contestants then competed in the finals, where they answered the question, “How did you fall in love with cheese,” showcased their cutting and paper wrapping skills, and had 15 minutes to create a cheese slate of the “perfect cheese bite” with accompaniments for each of the 15 judges. Smith won with the top score of 183 points. Justin Trosclair of St. James Cheese Co., New Orleans, came in second with 176 points, and Bryan Bland of Pastoral in Chicago won third place with 171 points. This year’s Cheesemonger Invitational also included a contest that awarded a wheel of Challerhocker to the three cheese shops that gathered the most “likes” on the competitors page at www.cheesemongerinvitational. com. Suzy Thompson of Forward Foods, Oklahoma City, won the Challerhocker challenge with 820 votes. Second place went to Miles Laird of The Pasta Shop, Oakland, Calif., who received 552 votes, and third to Pat McCroy of Standard Market, Westmont, Ill., with 532 votes. The competition was hosted by Larkin, Columbia Cheese, Neal’s Yard Dairy, Cellars at Jasper Hill, Rogue Creamery, Rodolphe Le Meunier, Brooklyn Slate Co., Formaticum, Rick’s Picks, Redondo Iglesias and All Ways Forwarding International Inc. Judges for the 2012 Cheesemonger Invitational were Rob Aguilera, Cary Bryant, Helen Feete, Mark Goldman, David Grotenstein, Kristy Hadeka, Shawn Hockert, Elaine Khosrova, Robert LaValva, Rodolphe Le Meunier, Leah Lewis, Vince Razionale, Jonathan Richardson, James Rutter, Seamus Sheridan and Liz Thorpe. CMN Photo courtesy of the International Dairy Foods Association Audrey Rowe, third from right, administrator for USDA’s Food and Nutrition Service (FNS), and several of her staff welcomed representatives from the International Dairy Foods Association (IDFA) during IDFA’s Washington Conference, held last month. IDFA members and staff met with FNS during the conference to discuss dairy’s role in competitive school foods. USDA is expected to issue a proposed rule early next year to set nutritional standards for competitive foods sold in schools, including a la carte sales as well as items sold in vending machines and school stores. “Administrator Rowe urged our members to submit comments when the proposed rule is issued,” says Cary Frye, right, IDFA vice president of scientific and regulatory affairs. “She wants to hear from all industry participants who could be affected before her department issues the final rule.” W e are your custom sourcing specialists for procuring Quality Cheddar Cheese to meet your specific needs. Celebrating 12 years in business and staffed with over 108 Years Combined Experience in the cheese industry. Please contact a “WAG” employee today for more info. We are here to meet your needs. 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Warehouse & Financing Available Throughtout Wisconsin 2101 Bohm Drive, Little Chute, Wisconsin 54140 P: 920.687.0889 F: 920.687.0416 Ken Neumeier, President & CEO, [email protected] Kate Neumeier Clarke, V.P. & COO, [email protected] photo copyright WMMB For more information please visit www.www.epiplastics04.com For more information please visit www.wagcheese.com Reprinted with permission from the July 6, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 24 CHEESE MARKET NEWS® — July 6, 2012 NEWS/BUSINESS CMAB Continued from page 1 It also helps that Mexico is in close proximity to the state, he adds. “The California name already has meaning in Mexico,” he says. “There are many people who have immigrated from Mexico to California.” One key way to move product and build demand is product sampling, he notes. “It’s an important and very key marketing element,” he says. Freedheim says the products are primarily sold at retail, but there is also some demand in foodservice, such as Mozzarella cheese for use on pizza. Meanwhile, CMAB is working to bring products to 11 Asian countries, including Japan, Korea, China, Vietnam, Thailand, the Philippines, Indonesia, Malaysia, Singapore, Hong Kong and Taiwan, says Ross Christieson, international business development consultant, CMAB. “We picked the Asian region because we know that’s where a lot of the growth is coming from in terms of future import demand,” he says. In each country, CMAB has set up a representative office to carry out its promotional activities and set up relationships with distributors, he notes. “This way, we can cover so much ground,” he says. “Our representatives can act as our eyes and ears.” Christieson says programs in these countries fall under three main categories: pizza/foodservice, bakery and general retail. The bakery program promotes the use of California products such as cream cheese, butter and cream in various forms. As part of the pizza/foodservice program, CMAB brought delegates from Asian countries to the 2012 Pizza Expo in Las Vegas this past spring so they could really see the way different cheeses are used on pizzas in the United States, Christieson says. “The growth of pizza is Asia is phenomenal,” he says. “The bulk of the cheese used is Mozzarella, but we’re also promoting specialty cheeses on pizza.” Christieson notes some of the challenges CMAB has faced in bringing and building awareness of dairy products in foreign lands. “When we first started this, it became apparent to me that we did not SAFE FOOD IS GOOD BUSINESS have enough exportable products,” he says. “We’ve worked very hard with our processors over the years to get them to make products that are in high demand in Asia, or extended shelf life products.” To that end, CMAB has worked with an ultra high temperature (UHT) milk processor to make UHT milk for export to Asia as well as Mexico. In the beginning, there were challenges with product standards in the Asian markets, which were primarily used to products from New Zealand and Australia. “When we started this program, California dairy had pretty much zero awareness in Asia, so we’ve had to show them that California products are actually better, starting with education,” he says. “We’re now moving to acceptance and understanding. “There’s great consistence of quality and supply in California, and that’s something that’s really resonating with Asian customers,” he adds. With about 20 percent of California dairy products now exported, that avenue is so important to building long-term growth of the industry, Christieson says. He adds that “the No. 1 thing that we stress to our industry is that they need to be innovative, coming up with products that meet domestic and world demands.” He adds that CMAB has “stirred up” a lot of interest among Asian customers, and now many want to come to California to see the industry and learn more about its products. “We’re very excited to showcase our industry,” he says. “We’ve got a great story to tell.” CMN Subscribe to CHEESE MARKET NEWS Ê CHEESE MARKET NEWS® MEET THE FAM HYMAKS DICER/STRIP-CUTTER THE NEW STANDARD IN FOOD SAFETY IS HERE Food safety is a major issue affecting not just the regulatory authorities, but also food processors, retailers, and consumers. The new USDA accepted Hymaks Dicer/Strip-cutter was designed to meet the most stringent requirements for hygiene and sanitation. ACCEPTED Unique and uncompromising sanitary design features: ó Complete separation of the product contact and mechanical zones ó All surfaces in the product contact zones are self-draining ó No exposed bores, threads, or bolts in any product contact zones ó Minimum Ra 32 finish in all product contact zones Ê Ê Developed specifically for the cheese and meat industries, the Hymaks is an industrial quality, high-capacity, high-precision food cutting machine. Visit our Web site to see a Hymaks video ( ) www.devilletechnologies.com ó 1-866-404-4545 For more information please visit www.devilletechnologies.com Reprinted with permission from the July 6, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com