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