of 32 /32
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS ® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Dean Foods seeking buyer for Waukesha, Wis., plant DALLAS — Dean Foods Co. this week announced that it is actively seeking a buyer for its milk processing, selling, marketing and distribution business located in Waukesha, Wis. Dean Foods agreed to sell the plant and related business as part of the March 29, 2011, settlement agreement reached with the U.S. Department of Justice (DOJ) and the states of Wisconsin, Illinois and Michigan. The divestiture includes the 170,000-square-foot fluid dairy processing facility and equipment, the Golden Guernsey and La Vaca Bonita brands, as well as other related assets. (See “Depart- ment of Justice reaches settlement with Dean Foods Co.” in the April 1, 2011, issue of Cheese Market News.) Interested bidders can contact Steve Schultz, vice president of corporate development at Dean Foods, at 214-72101414. CMN Artisan cheesemaking enjoys ‘renaissance’ in United States By Johanna Nelson MADISON, Wis. — For Joel and Carleen Weirauch, creating a sustain- able way of life was a big driver in their decision to pursue a farmstead sheep’s milk cheese operation in Petaluma, Calif. The couple, who have built a mobile dairy and creamery on 50 acres of certified organic pasture, are part of a sort of “renaissance” occurring within today’s U.S. artisan cheese industry. “I think there is a large percentage of people active in the Slow Food movement, so there’s a very large consumer base that is demanding artisanal and specialty products,” says Carleen Weirauch. “There is a growing demand for interesting, unusual products that are difficult to find in the larger chain stores. Farmers and small businesses are responding to this market — if there is demand, usually somebody is going to find a way to fulfill it.” The Weirauchs are among a small community of sheep’s milk cheese producers in California. Their flock is comprised of about 50 ewes and is monitored annually as part of the Animal Welfare Approved (AWA) program, which is designed to ensure compliance with rigorous animal welfare standards. The ewes produce milk during the spring and summer, and the Weirauchs plan to obtain milk from an organic Jersey cow dairy dur- ing the off season. Thus far Weirauch, who serves as Weirauch Farm and Creamery’s owner, cheesemaker and sheep herder alongside her husband Joel, says reception among the artisan cheese community has been very supportive — especially among the small number of sheep’s milk cheese producers in the area. “We all know each other — we all share genetics and do whatever we can to improve our stock,” Weirauch says, noting the dairy sheep industry has only been in North America since about 1994. “Over the last few years, we’ve also tried to network with folks doing goat and cow’s milk cheese as well.” In the years to come, Weirauch predicts there will be more consum- ers in California seeking out local products, thanks to collaborative efforts within the artisan cheese industry as well as continual product Volume 31 April 22, 2011 Number 13 WASHINGTON — Several bills making their way through Con- gress this month would have an impact on the U.S. dairy industry, such as proposed new labeling requirements and a guest worker program. Probably garnering the most spotlight is lawmakers continuing work on a federal budget agreement. After inching close to a gov- ernment shutdown two weeks ago, lawmakers approved a fiscal year 2011 budget bill. The measure reduces spending by Guest worker, labeling, budget bills moving through Congress $38 billion over the remaining months leading to Sept. 30, 2011, and funds the government through that time period. With the task of funding the remainder of this fiscal year behind them, last Friday the U.S. House of Representatives approved a fiscal year 2012 budget plan introduced by Rep. Paul Ryan, R-Wis., chair of the House Budget Committee. Ryan’s budget includes $5.8 trillion in federal spending cuts over the next 10 years. The plan would convert Medi- care to a voucher program. As part of its Medicaid reform, the budget would change the entitlement program to block grants, allowing states to de- cide how to allocate Medicaid assistance. The measure is now in the Senate, where it is facing strong opposition. Senate Budget Committee Chair Kent Conrad, D-N.D., says he wants to consider a plan being developed by a bi- partisan “Gang of Six” senators as a framework for the Senate budget blueprint. Leading the compromise are Sens. Mark Warner, D-Va., and Saxby Chambliss, R-Ga. Some type of debt-reduction strategy will have to be on the table by early July; if by early July the debt ceiling has not been raised, the Treasury Department will be unable to continue to borrow money and will default on U.S. debt, according to the Interna- tional Dairy Foods Association (IDFA). Sen. Tom Coburn, R-Okla., another member of the Gang of Six, has been trying to get Re- publicans to accept that some form of tax increases likely will be part of a deal, IDFA notes, adding a compromise likely will include elements both Democrats and Republicans will find fault with, whether they are cuts to entitlements or tax increases, because they may endanger incumbents’ chances for re-election in 2012. “What the country needs to hear from the leaders in Washington is that we under- stand how big this problem is and that we’re willing to lose elections to do what’s best for the country, and that’s what’s not happening now,” Coburn says. President Obama last week also unveiled a deficit reduction proposal, seemingly in response to Ryan’s budget proposal and amid criticisms that the admin- istration isn’t doing enough to attack the deficit, IDFA says. The plan would reduce the federal budget deficit by about $4 trillion over the next 12 years, with cuts to domestic and defense spending contrib- uting about half of the deficit reduction. Part of the proposed House 2012 budget includes cuts to agricultural risk management tools, which has garnered criti- cism from the National Farmers Union (NFU). “The fiscal year 2012 bud- get passed by the House calls for cuts to agricultural risk management tools, including crop insurance, which are likely to be at the core of the next farm safety net, along with reducing direct payments,” says Roger Johnson, NFU presi- dent. “NFU has maintained all along that agriculture is more than willing to take our fair share of the cuts. Reducing the deficit requires shared sacrifice; unfortunately, the budget has some groups, such as agriculture, doing much more than their fair share.” Sens. Kent Conrad, D-N.D., and Max Baucus, D-Mont., in a letter to Obama earlier this month noted that funding Milk production in United States climbs in March Turn to BUDGET, page 30 D WASHINGTON — Milk production in the 23 major milk-producing states dur- ing March totaled 15.76 bil- lion pounds, up 2.4 percent from March 2010, according to data released this week by USDA’s National Agri- cultural Statistics Service (NASS). (All figures are rounded. Please see CMN’s Milk Production chart on page 31.) Turn to NASS, page 31 D Turn to ARTISAN, page 25 D ) Probiotic-fortified Cheddar: A winning ticket for business, health. For details, see page 4. ) International Dairy Show moving to biennial schedule. For details, see page 8. ) Total cheese in cold storage declines. For details, see page 30. ) NCIMS to consider farm rules at upcoming meeting. For details, see page 31. INSIDE

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Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
Dean Foods seeking buyer for Waukesha, Wis., plant DALLAS — Dean Foods Co. this week announced that it is actively seeking a buyer for its milk processing, selling, marketing and distribution business located in Waukesha, Wis.
Dean Foods agreed to sell the plant and related business as part of the March 29, 2011, settlement agreement reached with the U.S. Department of Justice (DOJ) and the states of Wisconsin, Illinois and Michigan.
The divestiture includes the 170,000-square-foot fluid dairy processing facility and equipment, the Golden Guernsey and La Vaca Bonita brands, as well as other related assets. (See “Depart- ment of Justice reaches settlement with Dean Foods Co.” in the April 1, 2011, issue of Cheese Market News.)
Interested bidders can contact Steve Schultz, vice president of corporate development at Dean Foods, at 214-72101414. CMN
Artisan cheesemaking enjoys ‘renaissance’ in United States By Johanna Nelson
MADISON, Wis. — For Joel and Carleen Weirauch, creating a sustain- able way of life was a big driver in their decision to pursue a farmstead sheep’s milk cheese operation in Petaluma, Calif. The couple, who have built a mobile dairy and creamery on 50 acres of certified organic pasture, are part of a sort of “renaissance” occurring within today’s U.S. artisan cheese industry.
“I think there is a large percentage of people active in the Slow Food movement, so there’s a very large consumer base that is demanding artisanal and specialty products,” says Carleen Weirauch. “There is a growing demand for interesting, unusual products that are difficult to find in the larger chain stores. Farmers and small businesses are responding to this market — if there is demand, usually somebody is going to find a way to fulfill it.”
The Weirauchs are among a small community of sheep’s milk cheese producers in California. Their flock is comprised of about 50 ewes and is monitored annually as part of the Animal Welfare Approved (AWA) program, which is designed to ensure compliance with rigorous animal welfare standards.
The ewes produce milk during the spring and summer, and the Weirauchs plan to obtain milk from an organic Jersey cow dairy dur- ing the off season.
Thus far Weirauch, who serves as Weirauch Farm and Creamery’s owner, cheesemaker and sheep herder alongside her husband Joel, says reception among the artisan cheese community has been very supportive — especially among the small number of sheep’s milk cheese producers in the area.
“We all know each other — we all share genetics and do whatever we can to improve our stock,” Weirauch says, noting the dairy sheep industry has only been in North America since about 1994. “Over the last few years, we’ve also tried to network with folks doing goat and cow’s milk cheese as well.”
In the years to come, Weirauch predicts there will be more consum- ers in California seeking out local products, thanks to collaborative efforts within the artisan cheese industry as well as continual product
Volume 31 April 22, 2011 Number 13
WASHINGTON — Several bills making their way through Con- gress this month would have an impact on the U.S. dairy industry, such as proposed new labeling requirements and a guest worker program.
Probably garnering the most spotlight is lawmakers continuing work on a federal budget agreement.
After inching close to a gov- ernment shutdown two weeks ago, lawmakers approved a fiscal year 2011 budget bill. The measure reduces spending by
Guest worker, labeling, budget bills moving through Congress
$38 billion over the remaining months leading to Sept. 30, 2011, and funds the government through that time period.
With the task of funding the remainder of this fiscal year behind them, last Friday the U.S. House of Representatives approved a fiscal year 2012 budget plan introduced by Rep. Paul Ryan, R-Wis., chair of the House Budget Committee.
Ryan’s budget includes $5.8 trillion in federal spending cuts over the next 10 years. The plan would convert Medi- care to a voucher program. As part of its Medicaid reform, the budget would change the entitlement program to block grants, allowing states to de- cide how to allocate Medicaid assistance.
The measure is now in the Senate, where it is facing strong opposition.
Senate Budget Committee Chair Kent Conrad, D-N.D., says he wants to consider a plan being developed by a bi- partisan “Gang of Six” senators as a framework for the Senate budget blueprint.
Leading the compromise are Sens. Mark Warner, D-Va., and Saxby Chambliss, R-Ga. Some type of debt-reduction strategy will have to be on
the table by early July; if by early July the debt ceiling has not been raised, the Treasury Department will be unable to continue to borrow money and will default on U.S. debt, according to the Interna- tional Dairy Foods Association (IDFA).
Sen. Tom Coburn, R-Okla., another member of the Gang of Six, has been trying to get Re- publicans to accept that some form of tax increases likely will be part of a deal, IDFA notes, adding a compromise likely will include elements both Democrats and Republicans will find fault with, whether they are cuts to entitlements or tax increases, because they may endanger incumbents’ chances for re-election in 2012.
“What the country needs to hear from the leaders in Washington is that we under- stand how big this problem is and that we’re willing to lose elections to do what’s best for the country, and that’s what’s not happening now,” Coburn says.
President Obama last week also unveiled a deficit reduction proposal, seemingly in response to Ryan’s budget proposal and amid criticisms that the admin- istration isn’t doing enough to
attack the deficit, IDFA says. The plan would reduce
the federal budget deficit by about $4 trillion over the next 12 years, with cuts to domestic and defense spending contrib- uting about half of the deficit reduction.
Part of the proposed House 2012 budget includes cuts to agricultural risk management tools, which has garnered criti- cism from the National Farmers Union (NFU).
“The fiscal year 2012 bud- get passed by the House calls for cuts to agricultural risk management tools, including crop insurance, which are likely to be at the core of the next farm safety net, along with reducing direct payments,” says Roger Johnson, NFU presi- dent. “NFU has maintained all along that agriculture is more than willing to take our fair share of the cuts. Reducing the deficit requires shared sacrifice; unfortunately, the budget has some groups, such as agriculture, doing much more than their fair share.”
Sens. Kent Conrad, D-N.D., and Max Baucus, D-Mont., in a letter to Obama earlier this month noted that funding
Milk production in United States climbs in March
Turn to BUDGET, page 30 D
WASHINGTON — Milk production in the 23 major milk-producing states dur- ing March totaled 15.76 bil- lion pounds, up 2.4 percent from March 2010, according to data released this week by USDA’s National Agri- cultural Statistics Service (NASS). (All figures are rounded. Please see CMN’s Milk Production chart on page 31.)
Turn to NASS, page 31 DTurn to ARTISAN, page 25 D
) Probiotic-fortified Cheddar: A winning ticket for business, health. For details, see page 4.
) International Dairy Show moving to biennial schedule. For details, see page 8.
) Total cheese in cold storage declines. For details, see page 30.
) NCIMS to consider farm rules at upcoming meeting. For details, see page 31.
INSIDE
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
MARKET INDICATORS
2 CHEESE MARKET NEWS® — April 22, 2011
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.
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WEBSITE: www.cheesemarketnews.com
YEAR 2005 2006 2007 2008 2009 2010 2011
JAN 14.14 13.39 13.56 19.32 10.78 14.50 13.48
FEB 14.70 12.20 14.18 17.03 9.31 14.28 17.00
MAR 14.08 11.11 15.09 18.00 10.44 12.78 19.40
APR 14.61 10.93 16.09 16.76 10.78 12.92
MAY 13.77 10.83 17.60 18.18 9.84 13.38
JUN 13.92 11.29 20.17 20.25 9.97 13.62
JUL 14.35 10.92 21.38 18.24 9.97 13.74
AUG 13.60 11.06 19.83 17.32 11.20 15.18
SEP 14.30 12.29 20.07 16.28 12.11 16.26
OCT 14.35 12.32 18.70 17.06 12.82 16.94
NOV 13.35 12.84 19.22 15.51 14.08 15.44
DEC 13.37 13.47 20.60 15.28 14.98 13.83
Cheddar Cheese and Dairy Product Prices
Cheese 40-lb. Blocks:
*/Revised. 1/Prices weighted by volumes reported. 2/Sales as reported by participating manufacturers. Reported in pounds. More information is available by calling NASS at 202-690-2424.
3/26/11 4/9/11
Average price1
Minn./Wis. Other states U.S.
Cheese 500-lb. Barrels: Average price1
Minn./Wis. Other states U.S. Adj. price to 38% moisture Minn./Wis. Other states U.S. Sales volume2
Minn./Wis. Other states U.S. Moisture content Minn./Wis. Other states U.S.
4/2/11 4/16/11
Nonfat Dry Milk: Average price1 U.S. Sales volume2 U.S.
Dry Whey: Average price1 U.S. Sales volume2 U.S.
For the week ended:
$1.9730 5,703,959
$1.5766 20,501,659
$.4838 10,305,511
(These data, which includes government stocks and is reported in thousands of pounds, are based on reports from a limited sample of cold storage centers across the country. This chart is designed to help the dairy industry see the trends in cold storage between the release of the National Agricultural Statistics Service’s monthly cold storage reports.)
Butter Cheese
7,867 125,669
-405 -870
10,229 131,831
+259 -814
-2,362 -6,162
+3 -1
Weekly Cold Storage Holdings April 18, 2011 On hand Week Change since April 1 Last Year Monday Change Pounds Percent Pounds Change
Monday Tuesday Wednesday Thursday Friday
Chicago Mercantile Exchange
Apr. 18 Apr. 19 Apr. 20 Apr. 21 Apr. 22
Weekly average (April 18-21): Barrels: $1.5875(-.0095); 40-lb. Blocks: $1.6119(-.0101). Weekly ave. one year ago (April 19-23, 2010): Barrels: $1.3480; 40-lb. Blocks: $1.3705.
Cheese Barrels Price Change
Weekly average (April 18-21): Extra Grade: $1.8000(NC); Grade A: $1.6138(-.0342).
Grade AA Butter Price Change
Class II Cream (Major Northeast Cities): $2.4470(+.0221)–$2.6261(+.0632). Weekly average (April 18-21): Grade AA: $2.0000(+.0105).
$1.5825 NC
$1.6000 -2
$2.0000 NC
Sign up for our daily fax or e-mail service for just $104 a year. Call us at 608-288-9090.
$1.8000 NC
$1.6125 NC
$1.5825 -2 1/4
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. **Numbers are preliminary.
APR11 MAY11 JUN11 JUL11 AUG11 SEP11 OCT11 NOV11 DEC11 JAN12 FEB12 MAR12
0/1,953
48.00 47.75 47.00 45.25 45.50 45.50 44.50 45.00 45.50 44.00 43.00 42.00
432 404 315 170 135 138 123 117 110
3 3 3
DRY WHEY FUTURES for the week ended April 21, 2011 (Listings for each day by month, settling price and open interest)
48.00 47.75 46.75 45.25 45.50 45.50 44.50 45.00 45.50 44.00 43.00 42.00
432 404 315 170 135 138 123 117 110
6 6 6
9/1,962
48.00 47.75 46.75 45.25 45.50 45.50 44.50 45.00 45.50 44.00 43.00 42.00
432 404 315 170 135 138 123 117 110
6 6 6
0/1,962
Fri., April 15 Mon., April 18 Tues., April 19 Wed., April 20 Thurs., April 21**
48.00 47.75 47.00 45.25 45.50 45.50 44.50 45.00 45.50 44.25 43.00 42.00
432 404 315 170 135 138 123 117 110
3 3 3
5/1,953
48.03 47.75 47.08 45.25 45.50 45.50 44.50 45.00 45.50 44.25 43.00 42.00
432 404 315 168 135 138 122 116 109
3 3 3
Total Contracts Traded/ Open Interest 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. **Numbers are preliminary.
APR11 MAY11 JUN11 JUL11 AUG11 SEP11 OCT11 NOV11 DEC11 JAN12 FEB12
7/2,205
1.682 1.647 1.720 1.780 1.810 1.824 1.795 1.735 1.712 1.666 1.648
359 263 362 147 111 140 175 240 227
31 30
CHEESE FUTURES* for the week ended April 21, 2011 (Listings for each day by month, settling price and open interest)
1.682 1.651 1.730 1.780 1.815 1.824 1.795 1.735 1.712 1.666 1.648
359 263 362 147 111 140 175 240 227
31 30
0/2,205
1.690 1.639 1.715 1.780 1.815 1.830 1.800 1.740 1.720 1.666 1.648
359 267 366 147 115 144 179 246 232
31 30
Fri., April 15 Mon., April 18 Tues., April 19 Wed., April 20 Thurs., April 21**
1.686 1.643 1.712 1.772 1.806 1.824 1.790 1.730 1.712 1.666 1.648
358 263 364 143 111 140 175 240 227
31 30
2/2,202
1.686 1.689 1.760 1.810 1.807 1.825 1.787 1.725 1.712 1.666 1.648
358 262 364 143 111 140 175 240 227
31 30
15/2,201 35/2,236
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
April 22, 2011 — CHEESE MARKET NEWS® 3
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.
For more information circle 1 on the FAST FAX form on page 32.
MARKET INDICATORSNEWS/BUSINESS
YOU CAN CUT YOUR HEDGING COSTS TRADE WITH GPC FOR $3.41 PER SIDE ! Class III Milk ! Class IV Milk ! Whey ! Cheese ! Cash Settle Butter ! NFDM ! Options ! Trade Electronically $3.41 Side*
Call Free: 1-877-Gressel Southwestern Division: (602) 374-3885 [email protected]
* Plus front end fees, when applicable
There is a risk of loss in trading futures.
BROKERS OF DAIRY FUTURES & OPTIONS SERVING AGRI-BUSINESS SINCE 1933
JOE, ART, LEON & JARON GRESSEL
CHEESE FUTURES NOW TRADING.
Pentair to acquire division of Norit Holding MINNEAPOLIS — Pentair Inc. has entered into a definitive agreement to acquire the Clean Process Technologies (CPT) division from privately-held Norit Holding B.V. for approximately $705 mil- lion, plus net debt at closing.
Pentair says it expects the net debt at the time of closing to be minimal and plans to fund the transaction with a combination of cash, revolving credit facility funding and investment grade financing.
“With leading membrane technologies, CPT provides components, systems and services that will broaden and deepen our capabilities in desalination, water reuse and high-efficiency industrial applica- tions — and enable us to provide more
integrated solutions to our customers,” says Randall Hogan, Pentair chairman and CEO.
“This acquisition will position Pentair as a leader in the attractive food and beverage sector, where CPT’s expertise is highly valued, and will meaningfully strengthen our presence in fast growth regions, including China, Latin America and the Middle East,” he adds.
The transaction is expected to close in the second quarter of 2011, subject to satisfaction of customary conditions and applicable regulatory approval.
CPT specializes in membrane so- lutions and clean process technolo- gies in the water and beverage filtra- tion and separation segments. CMN
Dry Products* April 22, 2011
DRY BUTTERMILK (FOB)Central & East: $1.3650-$1.6200. (FOB) West: $1.5000(+4)-$1.5400; mostly $1.5100(+1)-$1.5300(+1).
EDIBLE LACTOSE (FOB)Central and West: $.3500-$.5500(+1); mostly $.4200-$.4800.
NONFAT DRY MILK Central & East: low/medium heat $1.5500-$1.7500; mostly $1.5500-$1.6200. high heat $1.6000-$1.8200. West: low/medium heat $1.5200(+2)-$1.6500; mostly $1.5800(+3) -$1.5900. high heat $1.6000(+2)-$1.8000(+1). Calif. manufacturing plants: extra grade/grade A weighted ave. $1.5511(+.0341) based on 12,890,486 lbs. Sales to CCC: 0 lbs.
WHOLE MILK POWDER (National): $1.8200-$2.0400.
DRY WHEY Central: nonhygroscopic $.4000-$.5125; mostly $.4150-$.4700. West: nonhygroscopic $.4525-$.5975(-1/4); mostly $.4550-$.5150(-1/2). (FOB) Northeast: extra grade/grade A $.4575-$.5425(-1 1/4).
ANIMAL FEED (Central): Whey spray milk replacer $.3050-$.4525.
WHEY PROTEIN CONCENTRATE (34 percent): $1.1500-$1.5800; mostly $1.1800-$1.5100.
CASEIN: Rennet $4.7600-$5.1400; Acid $4.7000-$5.1200.
*Source: USDA’s Dairy Market News
Advanced Prices and Pricing Factors
Base Skim Milk Price for Class I1: Advanced Class III Skim Milk Pricing Factor: Advanced Class IV Skim Milk Pricing Factor: Advanced Butterfat Pricing Factor2: Class II Skim Milk Price: Class II Nonfat Solids Price: Two-week Product Price Averages:
Butter: Nonfat Dry Milk: Cheese: Dry Whey:
Note: The Class I price equals the Class I skim milk price times 0.965 plus the Class I butterfat price times 3.5, rounded to the nearest cent. For information only: The Class I base price is $19.75. 1/ Higher of advanced Class III or IV skim milk pricing factors. The Class I skim milk price equals this price plus applicable Class I differential. 2/ The Class I butterfat price equals the price plus applicable Class I differential divided by 100. Data provided by USDA
May 2011 $12.49/cwt. $9.26/cwt. $12.49/cwt. $2.1984/lb. $13.19/cwt. $1.4656/lb.
$1.9869/lb. $1.5698/lb. $1.6768/lb. $0.4775/lb.
$2.0363/lb. $1.4733/lb. $1.9735/lb. $0.4618/lb.
Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. #The total contracts traded for Class III milk includes electronically-traded contract volumes. *Total Contracts Traded/Open Interest reflect additional months not included in this chart. **Numbers are preliminary.
Total Contracts Traded/ Open Interest
Cash-Settled NDM
346 332 394 423 366 229 177
97 99
Cash-Settled Butter
Total Contracts Traded/ Open Interest
565 450 431 429 428 303 173 160 172
161/3,111
346 337 401 423 366 229 179
97 100
91/3,145
346 337 409 423 366 245 183
98 103
8/3,147
Fri., April 15 Mon., April 18 Tues., April 19 Wed., April 20 Thurs., April 21**
Fri., April 15 Mon., April 18 Tues., April 19 Wed., April 20 Thurs., April 21**
Total Contracts Traded/ Open Interest
Fri., April 15 Mon., April 18 Tues., April 19 Wed., April 20 Thurs., April 21**
APR11 MAY11 JUN11 JUL11 AUG11 SEP11 OCT11 NOV11 DEC11 JAN12 FEB12 MAR12 APR12 MAY12 JUN12 JUL12 AUG12 SEP12 OCT12
Class III Milk#*
16.74 16.36 16.97 17.36 17.72 17.87 17.54 16.94 16.75 16.25 16.03 15.87 16.05 16.02 16.00 16.10 16.04 16.04 16.04
5,421 5,609 4,473 3,414 3,238 3,197 2,886 2,617 2,675
400 305 237 138 124 108
84 82 87 91
945/35,322
16.74 16.41 17.15 17.52 17.82 17.99 17.62 17.02 16.84 16.30 16.03 15.99 16.05 16.02 16.00 16.10 16.10 16.04 16.04
5,413 5,577 4,574 3,416 3,245 3,199 2,888 2,620 2,680
403 306 243 140 126 110
86 92 89 92
496/35,438
16.80 16.27 16.88 17.40 17.75 17.91 17.62 17.00 16.75 16.30 16.06 16.00 16.06 16.02 16.04 16.06 16.06 16.06 16.05
5,411 5,476 4,599 3,418 3,248 3,200 2,887 2,623 2,691
403 306 243 140 126 110
88 92 89 92
Class IV Milk
120/4,138
222/4,025
CME FUTURES for the week ended April 21, 2011
Fri., April 15 Mon., April 18 Tues., April 19 Wed., April 20 Thurs., April 21**
94/4,231
16.74 16.35 16.93 17.30 17.69 17.82 17.53 16.93 16.73 16.25 16.03 15.85 16.00 15.98 16.00 16.05 16.04 16.01 16.04
5,439 5,567 4,391 3,382 3,206 3,174 2,866 2,603 2,664
396 301 232 138 119 103
75 78 82 87
346 322 381 422 361 226 176
92 99
108/2,990
34/2,425
97/3,848
700/35,030
16.74 16.78 17.42 17.68 17.81 17.95 17.62 16.98 16.80 16.32 16.10 16.00 16.09 16.07 16.10 16.05 16.01 16.05 16.00
5,439 5,661 4,410 3,393 3,199 3,171 2,864 2,601 2,661
388 296 231 138 119 103
75 78 82 87
25/3,799
346 319 378 405 359 225 174
92 99
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
4 CHEESE MARKET NEWS® — April 22, 2011
Dr. Mali Reddy serves as president
of the American Dairy and Food Con-
sulting Laboratories and International
including M.S. and Ph.D. degrees
from Iowa State University in food
technology and microbiology. He is a
guest columnist for this week’s issue
of Cheese Market News®.
Probiotic-fortified Cheddar cheese: a winning ticket for business, health
G U E S T C O L U M N I S T S
Joseph O’Donnell is executive
director of the California Dairy Re-
search Foundation. He contributes
Perspective: Industry Innovation
Access to milk is a matter of national security
The popularity of Cheddar as a table cheese in the United States has been on the decline.
This is due, in part, to consumers’ concerns about high saturated fat and salt. According to the standard of identity for Cheddar, the moisture should not be greater than 39 percent, and fat on a dry basis should not be lower than 50 percent. Cheddar with 37 percent moisture and 1.5 percent salt will have 31.5 percent saturated milk fat (assuming its F.D.B. is
50 percent). If you want to call it Cheddar, there is no way to reduce the fat unless you make it reduced calorie, reduced fat, lite or fat-free.
Low-sodium Cheddar can be made and yet it will be high in saturated fat and still may not taste good. The major problem with low-calorie, lowfat or low-sodium Cheddar cheese is the reduced intensity of flavor, inferior taste and mouthfeel. Also, such lowfat products distinctly taste bit- ter because large amounts of milkfat are
required to cover up some of the natural bitter peptides liberated from casein breakdown, especially with aged cheese. On the sideline, despite attempts by vari- ous researchers to introduce substitutes to milkfat and salt, the taste of Cheddar could never be reproduced.
Many health-conscious people, even those without medical conditions, talk about not eating Cheddar because it is high in fat and salt. But when fat and salt are reduced, they will not eat such cheese because it lacks flavor and doesn’t taste good. One way to get around this problem is to improve the healthful aspect of cheese without having to reduce fat and salt. This can be accomplished through fortifying the cheese with probiotics. Since probiotics are becoming extremely popular, it is great to incorporate them to counteract the negative health aspect of high saturated fat and salt in Cheddar. In consumers’ and their physicians’ points of view, any food which improves the health is preferred.
Let us talk a little about what probiotics are, and how they improve human health. What are probiotics? Probiotics are bacte- ria or microorganisms that are beneficial to the health of an individual. As early as 1907, the Nobel Laureate Dr. Metchnikoff hypothesized and discovered that lactic acid-producing bacteria, administered orally, stopped intestinal ailments in hu- mans. They are essentially the opposite of antibiotics, which are inhibitory to other
bacteria (including probiotic bacteria). The word “probiotic” is derived from two Greek words, “pro” and “bios,” meaning “for life.” In 1989 Dr. Fuller redefined probiotics as live microbial supplements that bestow beneficial effects on the host by improving the intestinal microbial balance.
Modern foods which contain preser- vatives and even physician-prescribed antibiotic drugs are not beneficial to gas- trointestinal flora, especially probiotics. If all or most of the probiotics are destroyed in the gastrointestinal tract, the human life is in jeopardy. Consequently, in order to maintain and ensure proper gastroin- testinal eco-flora, continuous or periodic supplementation of probiotics is a must.
The following are some of the benefits of probiotics to improve health:
- Half of the world population is
unable to utilize lactose (milk sugar). Lactose malabsorption can be corrected by probiotics. Lactose is a disaccharide made of glucose and galactose. A person who lacks the lactase enzyme in the gut cannot digest lactose and thus develops clinical symptoms of typical lactose intol- erance such as flatulence and diarrhea. Probiotics, especially L. acidophilus, have the Beta galactosidase enzyme which can break down the disaccharide lactose into the simple sugars glucose and
Beverages account for almost half of all food sales and that number is growing. That should bode well for dairy with its superstar nutritional profile, but let’s take a look and see where the real opportunities exist in this competitive category.
As we break out the beverage in- dustry the first cut is alcoholic vs. non- alcoholic,then soft drinks vs. nutritious beverages. Discussing the differences among these categories would yield an endless debate. Let’s focus on just one element — margins.
Even though wine and beer deliver a number of nutrients in addition to
alcohol and responsible people view wine and beer as a normal accompani- ment to any meal, the whole aura of alcohol commands price margins that put these beverages at the top of the entire category.
Soft drinks, sweetened with sugar, corn syrup or artificial sweeteners are usually consumed with a meal or during the day as a refreshing beverage. Let’s include water in that category too. These beverages contribute from zero to about 150 calories per serving and little else to the diet. Actually, other ingredients in some of these beverages include phosphoric acid, which can create a bit
of havoc with our calcium balance. In any event, getting back to our margin concept, these products have such low ingredient costs that the margins are also high. All the sports drinks fit here as well. These products represent the ultimate in reductionist nutrition. They are formulated from pure nutrients (not whole foods) to contain various electrolytes (minerals), protein and other components intended to improve physical performance. Margins are again high.
Now let’s look at beverages that actually deliver some nutrition, namely dairy and fruit. Fruit beverages can be all natural or some combination of soft drink and fruit juice. The primary nutri- ent in most fruit drinks is sugar in some form. Various vitamins and minerals and less well-defined components also are touted in the marketing of fruit juices. Although more expensive to produce than fabricated soft drinks, fruit juices are less expensive to make than dairy beverages. Also, fruit juices, while seen as healthy, do not enter the market as a valid substitute for the complete nutritional package that milk offers.
Of all beverages, milk comes in as a basic food; a fundamental part of most family meal plans. Milk is purchased by the poorest of the poor and richest of the rich. The intrinsic value of milk separates it entirely from all other beverages. Because milk is so impor- tant to the health of all consumers, it is considered important to national security and stability. Because of this
seminal position in our food system, profit margins for milk are low. The bottom line here is that milk with its standards of identity will always have tight margins.
Milk production is complex — from feed and livestock management to the final shipping of a highly perishable product. Ultimately, the most nutritious beverage can be the most costly to pro- duce. Yet it often sells for less than other beverages — including water. Why? If pressed, our country could survive and remain healthy without all other beverages except milk. Without milk and its unique package of bioavailable nutrients, the health of our population would be compromised. Yes, milk is a matter of national security.
In addition to dairy’s health benefits, milk production and processing also benefit our economy greatly. Each part of production and processing is associ- ated with a job. I truly believe that the impact of a glass of milk on the physical and economic health of a population far exceeds that of any other beverage. Historically, this has been recognized by federal and state agencies that fund food research and by universities that conduct research. The dairy industry sacrifices large profit margins to maxi- mize the availability of milk to everyone living in the United States.
Nature has given us the answers to so many questions in nutrition. Milk is the one product that nature determined to be the most efficient way to deliver
Turn to REDDY, page 6 D
Turn to O’DONNELL, page 7 D
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
April 22, 2011 — CHEESE MARKET NEWS® 5
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NEWS/BUSINESS
AMPI sees continued sales growth in 2010 BLOOMINGTON, Minn. — Sales growth continued in 2010 for Associated Milk Producers Inc. (AMPI), a dairy market- ing cooperative owned by 3,000 dairy producers.
According to AMPI, more than half of the cooperative’s $1.7 billion in sales came from consumer-packaged dairy products. AMPI processes milk, manufactures dairy products and packages them for customers at 12 plants throughout the upper Midwest.
“AMPI product sales have grown for five consecutive years,” says Ed Welch, AMPI president and CEO.
Sales of packaged and processed cheese grew 5 percent, and butter sales were up 7 percent. Other areas of increased product sales including pudding and cheese sauce, 10 percent, 10 percent, and ice cream mix, 19 percent. In addition, Welch says the industry saw increased global demand for dairy pro- teins, which led to improved milk prices following the depressed markets of 2009. AMPI sold more than 28 percent of its
powdered dairy products internationally. Despite strong sales and profitable
operations, a year-end market drop de- valued product inventory and resulted in $1.5 million loss for the cooperative. AMPI notes members still shared $12.9 million from the previous year’s earnings and member equity.
AMPI Chairman of the Board Paul Toft also outlined the cooperative’s policy priorities.
“We stepped up our policy-making ef- forts this past year, urging lawmakers to enact legislation that would decrease milk price volatility and increase dairy farmer profitability,” he says.
Additional AMPI highlights include: producing 6 billion pounds of milk; investing in the cooperative’s manufac- turing network, upgrading whey drying, cheese processing and butter packaging equipment; and serving customers such as McDonald’s, Sysco and ALDI, who continue to rely on AMPI to make the product marketed under their labels. CMN
Organic Valley meeting highlights growth in sales, membership, farmer-owner goals
Organic Valley last week held its annual meeting in La Crosse, Wis., which highlighted the cooperative’s strong sales, growth in membership and achievements of its farmer-owners.
More than 450 farmer-owners at- tended this year’s meeting, the highest farmer attendance to date. Farmers traveled from 24 states and Canada.
Organic Valley is in a strong financial position, thanks to conservative fiscal and production strategies, the company says. The co-op achieved $619 million in 2010 sales and projects approximately $627 million in 2011 sales.
Organic Valley says its regional approach is stronger than ever, with region-specific labels that support local economies and shorten farm-to-table distance.
Membership at Organic Valley grew more than 23 percent in 2010. Farmer- members now are in 35 states and three Canadian provinces. Many of these
new members are family farmers who approached Organic Valley and were at risk of losing their farms, according to the cooperative.
During the annual meeting, Organic Valley recognized 512 of its farmer- owners with Outstanding Quality Awards in various production catego- ries from dairy and eggs to produce and meat.
“We’re proud to honor more than 30 percent of our farmer-members who have earned our quality awards, which reflects the pride our members have in producing the best qual- ity organic products,” says George Siemon, CEO and a founding farmer of Organic Valley. “These and other dedicated farmer-members further strengthen our cooperative, a theme present at this year’s annual meet- ing as we celebrated past successes and made collective decisions for the future benefit of our farmer-members and the organic industry.” CMN
FDA releases ‘Strategic Priorities 2011-15’ WASHINGTON — FDA this week released the final version of a stra- tegic priorities document outlining the goals that will guide the agency and its 12,000 employees through 2015.
“It’s no secret that the FDA’s re- sponsibilities have increased signifi- cantly over the past several years,” says Margaret A. Hamburg, FDA commissioner. “We must continue to build a stronger, more effective agency and, as this document out- lines, do so in several specific ways.”
The 50-page document, “Strategic Priorities 2011-2015: Responding to
the Public Health Challenges of the 21st Century,” provides a vision for FDA that includes:
science that draws on innovations in science and technology to help ensure the safety and effectiveness of medical products throughout their life cycles;
system focused on prevention and improved nutrition; and
needs of special populations. F o r m o r e i n f o r m a t i o n ,
visit www.fda.gov. CMN
MSU awarded grant to study E. coli ‘shedding’ — Roger
Beachy, director of USDA’s National Institute of Food and Agriculture (NIFA), recently announced the award of a $2.5 million research grant to Michigan State University (MSU) to reduce “shedding” of shiga toxin- producing E. coli (STEC).
The project, led by Dr. Shannon Manning, assistant professor of mi- crobiology and molecular genetics at MSU’s College of Natural Science, will study shedding — or the release of E. coli from the digestive tract — of cattle and develop strategies to reduce the shedding, with the intent of decreasing the number of illnesses
caused by STEC. STEC is a leading cause of food-
borne and waterborne infections. Most outbreaks are caused by contact with fecal materials from cattle and other ruminant animals, yet little is known about shedding from these animals.
With the grant from NIFA, Man- ning says her team of researchers will examine the host as well as genetic, microbial and environmental factors associated with STEC shedding.
The grant was awarded through NIFA’s Agriculture and Food Research Initiative (AFRI).
For more information vis- it www.nifa.usda.gov. CMN
6 CHEESE MARKET NEWS® — April 22, 2011
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galactose, and thus reduce the discomfort of lactose intolerance. Recently more and more people are fructose intolerant and proper probiotics should greatly improve this discomfort as well.
Antibiotic-induced diarrhea has been suc- cessfully controlled by probiotics. Specific strains of Lactobacillus and Bifidobac- terium have been used in children and adults for therapy of intestinal infections.
- ease: The fact that probiotic supplementa- tion inhibits cholesterol concentrations in the blood and increases the excretion
of cholesterol in the feces has been well documented. Cholesterol absorption is interfered within the gut partly due to assimilation of cholesterol by probiotic organisms. In addition, probiotics (Bifi- dobacterium longum) deconjugate bile salts with aid of bile salt hydrolase, and thus increase the excretion of free bile salts in the feces. This has the potential to reduce serum cholesterol because the replacement of bile salts would require the utilization of some cholesterol in the body. Thus, the resultant hypocholesterolemia may reduce the incidence of coronary heart disease.
This is a very important activity induced by probiotics. Immune-stimulating activity is attributed to their bacterial cell envelope constitu-
ents such as peptidoglycan. Results of vari- ous investigators indicate that probiotics stimulate the production of antibodies, enhance the systemic activity of macro- phages, and increase interferon levels and the number of killer cells, thus improving the immunity.
Dietary intake of lyophilized cultures of Bifido- bacterium longum has significantly sup- pressed the development of azoxymeth- ane-induced aberrant crypt foci (ACF) formation in the colon. The same group of scientists elucidated the ability of the probiotic strains to inhibit the incidence of colon tumors. Some of the non-probiotic type of gastrointestinal flora will convert procarcinogens to carcinogens, which are the causative agents for cancer. Some of
the end products of digestion are pro- carcinogenic. Procarcinogenic materials may not cause cancer; however, if they are acted upon by certain microbial enzymes in the gastrointestinal tract, they will be converted to carcinogens. Probiotics suppress the growth of these undesirable enzyme-producing non-probiotic bacteria, and thus reduce the chance of converting procarcinogens to carcinogens.
Helicobacter pylori is a gram-negative spiral-shaped bacterial pathogen that colonizes in the area between the mucous layers of stomach and gastric epithelium. It is now recognized as the causative agent for chronic gastritis, which is a major factor for causing gastric and duodenal ulcers, gastric atrophy and gastric cancer. The International Agency for Research on Cancer has classified H. pylori as a Group I carcinogen. This is the first patho- genic bacterium to be classified as such. Methicillin-resistant Staphylococcus aureus (MRSA) and antibiotic-resistant Clostridium difficile are categorized as lethal hospital-associated infections kill- ing more than 30,000 people annually in the United States alone. Limited research data indicate that even these bacteria can be inactivated or suppressed with the use of proper probiotics.
Although probiotics have made a big stride in the medical field, people should not forget their genesis. They are all dairy-associated organisms. For example, several beneficial species of Streptococcoi and Lactobacilli have been used as dairy starter cultures for several centuries. Since yogurts have made it in a big way by incorporating probiotics as part of their starters, why not Cheddar cheese? Even though the fruit-base commercial yogurts are loaded with sugars (which are considered non-healthy), people prefer them for their therapeutic benefit from live starter bacteria cultures and/or probiot- ics. The addition of probiotics to Cheddar may greatly improve its acceptance in this health conscious era, provided it is advertised properly like yogurt.
In fact, fortified probiotic bacteria survive better in cheese than yogurt. The health benefits of probiotics have to be explained to consumers through advertise- ment and education. Probiotic bacteria are GRAS (Generally Regarded as Safe), according to FDA, and thus can be used in cheese, using proper technology, as part of starter cultures. Probiotics can be included in the bulk starter, can be added through secondary starters, or can be dusted onto a consumer pack block cheese (prior to packing) or can be included into an anti-caking agent and then applied onto diced or shredded Cheddar.
Business can only move forward with innovation. Let us innovate and reinvigorate Cheddar to bring it back as an all-time favorite table cheese by incorporating probiotics to improve its positive healthful aspects. CMN
The views expressed by CMN’s guest columnists are their own opinions and do not necessarily reflect those of Cheese Market News®.
REDDY Continued from page 4
G U E S T C O L U M N I S T
April 22, 2011 — CHEESE MARKET NEWS® 7
For more information circle 5 on the FAST FAX form on page 32.
NEWS/BUSINESS
wholesome and complete nutrition to mammals – it is our job, as researchers, to determine how that is done.
Once we understand how nature came to construct milk, we can apply those same principles to other food systems. The specialized carbohydrates in milk, milk’s unique proteins and complex fats all have tremendous opportunities for those in food research. Healthful compo- nents of milk could be dried or concen- trated and stabilized for delivery to any corner of the globe, literally delivering life-saving nutrition to the most vulner- able populations. It’s a heady prospect.
Companies with high profit margins are lucky funding for research and de- velopment can be easy. It is less simple for industries like dairy that find them- selves in the volume business. Research costs money, but raising prices defeats the purpose of delivering accessible health to the largest number of people.
We must recognize how systems of delivering basic commodities work in supporting economics and health. With this recognition, resources for continued dairy food research can be identified in the broader society and we can all continue to drive malnutri- tion and poverty from all lands. It’s a matter of health and security. CMN
The views expressed by CMN’s guest columnists are their own opinions and do not necessarily reflect those of Cheese Market News®.
O’DONNELL Continued from page 4
Arla to consolidate production, expand plants Arla Foods
amba recently approved a new structure plan that will close one production facil- ity in Sweden and expand the capacity of two Danish facilities.
As a result of tough competition in international markets for yellow cheese, Arla’s board of directors approved a plan that will consolidate part of the yellow cheese production at plants in Nr. Vium and Taulov, Denmark. The board ap- proved an investment of approximately $118 million that will expand the pro- duction capacity in these two plants.
Meanwhile, Arla will close its pro- cessing facility in Falkenberg, Sweden, and transfer the plant’s cheese produc- tion to the Nr. Vium facility in Denmark.
Company officials say milk volumes have been declining in Sweden since 2003, and to avoid empty plants, Arla has to react to the overcapacity problem at the Swedish facilities, which has con- tributed to increased production costs.
“The challenge in Sweden is to fill our dairies,” says Jais Valeur, executive vice president, Arla Foods amba. “To avoid empty plants a few years down the line, we have to react now. If we don’t, production costs will be higher
and the milk price paid to our owners will fall. And that’s not in our interests.”
In addition to the closure of the Falkenberg facility, Arla expects the consolidation plan eventually will lead to the closure of two facilities in Klovborg and Hjorring, Denmark. These measures will secure Arla’s future production of a broad range of yellow cheeses at com- petitive prices, company officials say.
Arla plans to expand its Nr. Vium plant over the next 12 months and its Taulov plant over a three-year period, resulting in more efficient production. The planned investment will increase the capacity at Nr. Vium by 34 percent and the capacity at Taulov by more than 60 percent. CMN
FDA launches consumer-friendly search engine WASHINGTON — FDA recently launched an online search engine to allow consumers to search for food and other product recall information.
FDA says that to provide greater ease of use for consumers, the search results provide data from news releases and other recall announcements in the form of a table, which organizes the informa- tion (since 2009) by date, product brand name, product description, reason for recall and the recalling firm.
The table also provides a link to the news release on each recall for more detailed information. The previous display provided links in a scroll-down format, FDA notes.
Under the Food Safety Moderniza- tion Act, FDA was required to provide a consumer-friendly search engine within 90 days after the law went into effect.
“Recalls, mandatory or otherwise, are serious, and we must do everything possible to make it easier for people to know about these recalls so they can take all appropriate steps to protect themselves and their families,” says Mike Taylor, FDA deputy commissioner for foods. “We encourage people to check out our new recall search page for themselves and use it whenever they have a question about a recall.”
For more information, visit www.fda. gov/Safety/Recalls/default.htm. CMN
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UW-Madison to offer cheese grading course MADISON, Wis. — The University of Wisconsin-Madison will hold its Cheese Grading & Evaluation Short Course June 7-9 at Babcock Hall in Madison, Wis.
The course is sponsored by the Wis- consin Center for Dairy Research, the Department of Food Science and the College of Agricultural & Life Sciences. It is intended for cheesemakers, pro- duction supervisors and quality control personnel interested in assessment of cheese quality.
The three-day course will cover the principles and practices used in grading natural cheeses. It will be structured around the cheese grading standards
covered by Wisconsin Ag Chapter 81 and USDA Grading Standards.
Cheeses used in the grading lab sessions will be selected to show the majority of flavor, body, texture, color and appearance defects found in the industry today.
The registration fee is $375 and covers instructional materials, cheese, supplies, speaker and staff expenses, breaks and lunches. The deadline to enroll is May 29.
For additional information, contact CALS Conference Servic- es at 608-263-1672 or visit www. p e o p l e w a r e . n e t / 2 7 2 3 . C M N
Condoleezza Rice among guest speakers for IDDBA’s 2011 Dairy-Deli-Bake show MADISON, Wis. —The International Dairy-Deli-Bakery Association (IDDBA) has announced the speaker lineup for Dairy-Deli-Bake 2011, which will be held June 5-7 in Anaheim, Calif., at the Anaheim Convention Center.
Condoleezza Rice will provide a sweeping look at global affairs during her tenure as the 66th Secretary of State of the United States, and as the National Security Advisor. She will share stories of her experiences that will help to illuminate the interrelationship of global events and leaders.
Guy Fieri also will present “From Daytime to Primetime — A Food Pas- sion.” Fieri was a contestant and winner of The Next Food Network Star’s second season. Today, he hosts three shows on Food Network including Guy’s Big Bite and Diners, Drive-ins, and Dives. He also is the host of the prime time game show, Minute To Win It and is the owner/operator of five restaurants in Northern California. He will share stories on how a passion for food, creating fun experiences and sharing ideas can attract and keep customers.
This year’s speaker lineup also will include Joe Montana, who will present “Driving Performance Excellence: In
Sports, Business & Life.” As quarterback, Montana led the San Francisco 49ers to four Super Bowl wins and, in the process, captured three Super Bowl MVP awards. He will bring the lessons learned on the playing field to the business arena and life.
Additional speakers will include Captain Chesley “Sully” Sullenberger, who will present “Making an Impact;” Futurist Lowell Catlett, who will discuss “2020: A Vision for Tomorrow;” and Harold Lloyd, president of Harold Lloyd Presents, who will present “The Super- market Department Manager: What Makes Them Tick; What Turns Them on?” In addition, Marcus Buckingham, who spent 17 years with the Gallup Or- ganization, will present “Great Leader or Great Manager: The One Thing You Need to Know;” Sinbad, comedian, will present “Weighty Issues: The World of Sinbad;” and John Gerzema, chief in- sights officer at Young & Rubicam and author of Spend Shift and The Brand Bubble, will present “Spend Shift: Brands and the Post-Crisis Consumer.”
For a complete schedule of events, reg- istration or housing form and information on exhibiting, or contact IDDBA at 608- 310-5000 or visit www.iddba.org. CMN
Alltech to hold symposium May 22-25 LEXINGTON, Ky. — Alltech will hold its 27th International Animal Health and Nutrition Symposium, “The Game Chang- ers: Creative Concepts for Agribusinesses to Respond to Relentless Commodization and to Innovate for a Greener Future,” May 22-25 in Lexington, Ky.
The symposium will address chal- lenges such as the rising price of corn and the market value of milk, providing insights and solutions.
Attendees will have the opportunity to hear from and interact with dairy industry experts during the seminars. Topics will include “Managing the media myth: What is the truth behind the carbon footprint of modern dairy production?” “Towards farm sustainability — Can we benchmark milk production economics?” and “The power of dealing with the end consumer — Should farmers commercialize their own milk?”
For more information, e-mail Alltech at symposium@alltech. com or visit www.alltech.com. CMN
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International Dairy Show moving to biennial schedule after 2011 WASHINGTON — The board of the International Dairy Foods Association (IDFA) recently voted to move IDFA’s International Dairy Show (IDS) to a biennial schedule following this year’s show Sept. 19-21 in Atlanta.
According to Neil Moran, senior vice president of finance, administration and trade show for IDFA, IDS originally was created as an annual event. However, based on feedback, attendee evalua- tions, discussions with IDFA members and market research, the IDFA board has decided to adjust the format to better serve its members’ and partners’ needs.
The 2013 show is slated to be held in Chicago.
For more information, v is - it www.dairyshow.com. CMN
April 22, 2011 — CHEESE MARKET NEWS® 9
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Inaugural Global Cheese Technology Forum will be held Oct. 11-12 RENO, Nev. — Cheese and whey pro- duction in the western United States and its place in the global economy will be the theme of this year’s Global Cheese Technology Forum, Oct. 11-12 at the Peppermill Resort in Reno, Nev.
The conference is being organized by the Dairy Products Technology Center at Cal Poly and the Western Dairy Center at Utah State University.
The forum will assemble industry ex- perts who will provide current technical information on major issues that face today’s cheese manufacturers.
“The two-day forum is designed to provide the latest technical information relevant to the cheese industry in the
western United States, provide informa- tion on current regulatory and marketing issues related to cheese and provide a forum to discuss educational and future challenges of the cheese industry,” says Nana Farkye, Cal Poly dairy science professor. “The forum will be useful for cheese industry middle to upper man- agement, suppliers, distributors and end users, food research and development professionals and academics.”
Don McMahon, director of the West- ern Dairy Center at Utah State, also says that the cheese industry in the western United States has grown tremendously in the last 20 years, yet opportunities for company leaders to hear about technical
developments have diminished. “As the premier cheese research
programs in our region, the Dairy Prod- ucts Technology Center at Cal Poly and the Western Dairy Center at Utah State University have organized an event to provide the latest technical information relevant to leaders in today’s cheese industry,” he says.
The forum is designed for the cheese industry in the western United States, but is open to cheesemakers everywhere.
For more information or to reg- ister, contact Laurie Jacobson at 805-305-5056, e-mail: ljacobso@ calpoly.edu or visit www.global- cheesetechnologyforum.org. CMN
Symposium on raw milk to be held in May in Minnesota BLOOMINGTON, Minn. — The Farm- to-Consumer Foundation and the Foun- dation for Consumer Choice will co-host the third annual Raw Milk Symposium: Producer-Consumer-Choice in Bloom- ington, Minn., May 7 at the Embassy Suites Hotel.
The symposium is open to the public. Farmers and consumers are especially invited to learn more about the safety and health benefits of raw milk as well as the relationship be- tween producers and consumers, event coordinators say.
Featured speakers will include Ted Beals, a retired pathologist with an interest in the relationship of raw milk to the specific facts surrounding its safety; Sally Fallon Morell, author of the cookbook, Nourishing Traditions and president of the Weston A. Price Founda- tion; David Gumpert, author, journalist and reporter; Sylvia Onusic, nutritionist and writer/journalist; Michael Schmidt, trained in biodynamic farming in Ger- many; Catherine Shanahan, author of the books Deep Nutrition and Food Rules; and Alan Watson, author of 21 Days to a Healthy Heart and Cereal Killer.
Interested parties may register online at RawMilkSymposium.org or by contacting 703-208-3276. The registra- tion fee is $40 to attend the symposium. A lunch ticket also is available for $25, and the fund raiser reception and din- ner is $100.
For more information about the event or sponsorship and exhib- it opportunities, contact Christie Boyd, symposium coordinator, at 513-407-8899, e-mail: admin@farm- toconsumerfoundation.org. CMN
Wisconsin Specialty Cheese Institute to hold annual golf outing June 16 VERONA, Wis. — The Wisconsin Specialty Cheese Institute (WSCI) will hold its 11th annual golf outing June 16 at the University Ridge Golf Course in Verona, Wis.
The golf outing will feature a scramble format with a shotgun start scheduled for 12:30 p.m.
The day also will include hole contests, a grand prize raffle and door prizes, awards and dinner.
Those interested should reserve one or more foursomes.
The registration fee is $150 per golfer and includes greens fees, golf cart, practice range balls, yardage guides, personalized bag tags, box lunch and tailgate cookout.
For additional information, con- tact WSCI at 262-740-2180, e-mail: [email protected]. CMN
Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the April 22, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
10 CHEESE MARKET NEWS® — April 22, 2011
NEWS/BUSINESS
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WILMINGTON, Mass. — Koch Mem- brane Systems (KMS) has prepared a white paper on the theory and applica- tion of crossflow membrane filtration, a technique for maintaining stable filtra- tion rates in process streams that have high concentrations of solids.
Crossflow membranes can be pro- vided in a variety of configurations to suit specific needs. According to the article, many simple filtration processes use a dead-end technique — the flow of liquid to be filtered is directed per- pendicular to the filter surface. This is effective when the concentration of particles to be removed is low or the packing tendency of the filtered mate-
New white paper from KMS discusses theory, application of crossflow membrane filtration rial does not produce a large pressure drop across the filter medium, but not when there are high concentrations of particulates. Some common examples of effective dead-end filtration are home water filters, vacuum cleaners and au- tomobile oil filters. Typical industrial uses include the sterile filtration of water, beer and wine.
Process streams that have high concentrations of particles or macro- molecules such as cells, proteins and precipitates that will rapidly compact on the filter surface when operated in a dead-end mode cause the filtration rate to drop quickly to an unaccept- able level. In these circumstances,
the article says a crossflow membrane system provides the means to maintain stable filtration rates.
“The key to the design of a crossflow system is selecting a membrane geom- etry that suits the physical characteris- tics of the process fluid,” the article says. “Crossflow membranes can be provided in tubular, flat sheet, spiral wound and hollow fiber configurations, each of which provides certain advantages for specific process needs.”
In addition, the white paper notes that virtually any membrane design can be applied on water-like liquids with low concentrations of suspended solids, but viscous streams and fluids with large amounts of solids can only be handled with membranes specifically designed for this purpose. In general, the more difficult a stream is to process, the higher the cost of a membrane system and the higher the operating costs. Because of this, the article recommends an optimi- zation study as an important component of any potential crossflow installation.
The article also discusses the evolu- tion of membrane technology. Modern crossflow technology has primarily evolved during the last 40 years, largely in step with the advancement of poly- mer chemistry. Currently, 98 percent of crossflow installations utilize polymer- based membranes while inorganic materials such as ceramic are only
selected in specific instances where pH, temperature or cleaning chemistry prohibit the use of polymers.
Regarding the theoretical principles of crossflow filtration, the article re- fers to Fick’s law of diffusion, which addresses the migration of suspended solids/macromolecules in a flowing stream toward a filtration surface, and the potential back-diffusion into the bulk stream. The design of a successful flow system relies on choosing a mem- brane geometry that can be installed and operated economically, provides consistent predictable results and can be effectively cleaned using chemicals compatible with the membrane.
In addition, the article explains that crossflow membranes are manufac- tured in a range of porosities tailored to address various applications. These span the range of salt removal from water to large particulate filtration in viscous fluids. Filtration ranges have been defined that correlate to physical aspects of the membrane process and the relative size exclusion involved. Membranes with different pore sizes also are discussed, including reverse osmosis, nanofiltration, ultrafiltration and microfiltration.
For more information about the white paper, contact Cindy Ohl- man at 978-694-7109, e-mail: cohl- [email protected]. CMN
Arla Foods amba recently approved a new structure plan that will close one production facil- ity in Sweden and expand the capacity of two Danish facilities.
As a result of tough competition in international markets for yellow cheese, Arla’s board of directors approved a plan that will consolidate part of the yellow cheese production at plants in Nr. Vium and Taulov, Denmark. The board ap- proved an investment of approximately $118 million that will expand the pro- duction capacity in these two plants.
Meanwhile, Arla will close its pro- cessing facility in Falkenberg, Sweden, and transfer the plant’s cheese produc- tion to the Nr. Vium facility in Denmark.
Company officials say milk volumes have been declining in Sweden since 2003, and to avoid empty plants, Arla has to react to the overcapacity problem at the Swedish facilities, which has con- tributed to increased production costs.
Arla plans to consolidate cheese production “The challenge in Sweden is to fill
our dairies,” says Jais Valeur, executive vice president, Arla Foods amba. “To avoid empty plants a few years down the line, we have to react now. If we don’t, production costs will be higher and the milk price paid to our owners will fall. And that’s not in our interests.”
In addition to the closure of the Falkenberg facility, Arla expects the consolidation plan eventually will lead to the closure of two facilities in Klovborg and Hjorring, Denmark. These measures will secure Arla’s future production of a broad range of yellow cheeses at com- petitive prices, company officials say.
Arla plans to expand its Nr. Vium plant over the next 12 months and its Taulov plant over a three-year period, resulting in more efficient produc- tion. The planned investment will increase the capacity at Nr. Vium by 34 percent and the capacity at Tau- lov by more than 60 percent. CMN
Fonterra Cooperative Group recently announced that its Chilean subsidiary Soprole has withdrawn a proposal to merge its business with Nestle Chile’s liquid and chilled dairy business.
The parent companies Nestlé S.A. and Fonterra assessed that the condi- tions to continue with the application were not appropriate and have no plans
Fonterra subsidiary cancels merger plans to present a new application to Chilean authorities.
Fonterra CEO Andrew Ferrier says Soprole now will focus on continuing to grow its consumer business in Chile.
“Soprole already has a very strong po- sition in the Chile market and has been posting strong growth in recent years,” Ferrier says. “The team is now focused on building on that strong foundation.” CMN
NEWS/BUSINESS April 22, 2011 — CHEESE MARKET NEWS® 11
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MADISON, Wis. — A new report, pub- lished by the Dairy Business Innovation Center (DBIC) may help cheesemakers carve out a marketing niche by identify- ing a new “Taste of Place” designation for cheeses made in the driftless region of western Wisconsin.
“Application of the Concept of Ter- roir in the American Context: Taste of Place and Wisconsin Unpasteurized Milk Cheeses,” by DBIC team member Gersende Cazaux, explores the possi- bility of adapting the French concept of “terroir” to unpasteurized cheeses made in the unglaciated, rolling hills of Wisconsin’s driftless region.
While terroir has traditionally been used to explain a product’s specificity as a result of where and how it is made, to- day the term has moved beyond France and is used to explain the uniqueness of products, even serving as the basis to label and protect wines and cheeses made in certain regions of Europe, ac- cording to the report.
Currently, four projects have aimed to develop an American version of ter- roir, renamed “taste of place,” including Napa Valley wine in California, Ver- mont’s Taste of Place for maple syrup, the Missouri Regional Cuisine Project for wine and food, and the Driftless Region Food and Farm Project in the Upper Midwest for local food products.
Cazaux, a native of France, spent more than one year in Wisconsin researching and writing DBIC’s new-
‘Taste of Place’ report examines characteristics of cheeses from Wisconsin’s driftless region est paper on applying the concept of terroir, or taste of place, to raw milk cheesemakers in Wisconsin. The proj- ect’s goal was to explore whether a geographical area could be applied to unpasteurized cheeses in Wisconsin, and whether cheeses in that area shared enough common characteristics to be collectively marketed using a “taste of place” label.
To achieve that goal, DBIC con- ducted a survey of all Wisconsin raw milk cheesemakers in July. Cheese- makers were asked to provide specific information about their unpasteurized cheese production, their dairy farming systems and cheesemaking practices.
According to the report, Wisconsin is home to 22 raw milk cheesemaking operations — 10 farmstead, nine creameries, two dairy farms and one cheese-aging operation. Of these 22 raw milk cheesemaking operations, 16 are located in the driftless region of Wisconsin.
These processors share the follow- ing traits:
the 16 producers located in the driftless region use milk from farms practicing a grazing system;
of the 16 producers use rbGH-free milk; and
— three producers use organic milk for making their cheeses.
To characterize a cheese production under the taste of place, the major influencing factor is how producers approach the raw material, the milk. The report explores how cheesemakers and dairy farms produce cheeses from milk reflecting specific “aromatic” char- acteristics. Specifically, the analysis
shows that 14 of the 22 raw milk cheese producers in Wisconsin use milk with a high aromatic potential to express the taste of place in their cheese.
These producers are characterized by the following features:
to the dairy farms that supply the milk; -
ers, from one to five, who practice dairy farming based on grazing; and
of the milk by not heat treating it and by using it within 48 hours after milking.
The report concludes that using
the concept of taste of place in the geographical driftless region would be close to the concept of terroir, as 16 of the 22 raw cheese producers are located in the region, which is characterized by specific natural characteristics and common practices based on values that unify and bring coherence to food production from the region.
DBIC now plans to work with the existing Driftless Region Food and Farm Project and take steps to create a “taste of place” for Wis- consin unpasteurized cheeses craft- ed in the driftless region. CMN
Groups petition EPA to regulate farms’ ammonia emissions WASHINGTON — More than 20 na- tional, state and local organizations have filed a petition with the U.S. En- vironmental Protection Agency (EPA), laying out a case for an “endangerment finding” for ammonia gas and requesting that EPA list ammonia as a Clean Air Act criteria pollutant.
The criteria pollutant program requires EPA to establish air quality standards that protect public health and the environment.
The effort is led by the Environ- mental Integrity Project, and includes a group of organizations that advocate for environmental protection, public health, animal welfare, and rural econo- mies and communities.
Petitioners include such groups as the Bloomberg School of Public Health’s Johns Hopkins Center for a Livable Future, the Sierra Club, the Humane Society of the United States, the Waterkeeper Alliance and rural community organizations in California, Illinois, Iowa, Michigan, New Mexico and Wisconsin. These organizations represent rural Ameri- cans who contend they are affected by ammonia pollution from factory farms in their communities. CMN
12 CHEESE MARKET NEWS® — April 22, 2011
NEWS/BUSINESS
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ARLINGTON, Va. — The National Milk Producers Federation (NMPF) recently introduced more details on its proposal to reform federal milk marketing orders (FMMOs).
The FMMO reform proposal is part of NMPF’s Foundation for the Future (FFTF) plan to reform U.S. dairy policy. Last month, NMPF’s board of directors agreed to support several reforms to the federal order program. (See “NMPF board OKs proposed reforms to FMMO system” in the March 11, 2011, issue of Cheese Market News.)
In recently-released details on the FMMO reform proposal, NMPF notes that the primary objectives of the proposal are to address the inequities and inad- equacies of end-product price formulas; encourage manufacturers to produce new products resulting in higher returns both to themselves and to dairy producers; and more equitably reward producers and handlers for balancing milk supplies.
Under the proposal, all milk used in manufactured dairy products would be competitively priced, which would elimi- nate the use of end-product price formulas for manufacturing milk, including make allowances, NMPF says.
NMPF notes there would be, in ef- fect, two classes of milk use: fluid milk products (milk used to produce Class I products would be subject to minimum pricing, plus market-based premiums); and manufactured products (Class II, III and IV products would be competitively priced).
However, an advanced Class IV price would continue to be calculated, and the Class I price mover would be based on the higher of the competitive cheesemilk price or the Class IV price.
Each month, USDA’s Agricultural Marketing Service (AMS) would carry out
NMPF releases more details on its proposal to reform federal milk marketing orders a survey of the competitive price paid by proprietary cheese plants to cooperatives and individual dairy producers for milk used to make cheese.
Proprietary plants — including those with 50 percent cooperative ownership or less and managed by the proprietary partner — producing all types of cheese would be surveyed if they process a daily average of at least 250,000 pounds of milk and are not subject to minimum pricing for that milk (under a state order, for example).
The data collected by AMS in the survey would include pounds of milk and pounds of butterfat, all premiums, component values, hauling subsidies, and lab and field service costs where ap- plicable. Forward contracted milk would not be included.
USDA would publish the results of this survey for each of five regions. These regions would correspond to, and expand upon, the current federal order markets, but are defined for reporting purposes only. There would be fewer reporting re- gions than federal order markets to ensure that each region has a sufficient volume of manufacturing milk use to result in a robust competitive pay price. California would be excluded from the survey as long as it continues to set a minimum cheesemilk price.
The national fluid milk (Class I) price mover would be the higher of the national weighted average competitive cheesemilk price survey, or the current Class IV for- mula butter-powder milk value. It would be announced in advance.
For example, the Class I mover for April would be the higher of: February’s national average cheesemilk competitive price, adjusted with weighted average National Agricultural Statistics Service (NASS) block and barrel cheese prices
for the first two weeks of March; or an advanced Class IV price as currently calculated.
A handler’s minimum price for Class I milk would be this national mover plus the current Class I differential at the plant.
The minimum price bottling plants would be required to pay to producers and co-ops supplying Class I milk would be equal to the lowest regional com- petitive cheesemilk price plus applicable producer location differentials, lagged and adjusted the same way as the Class I mover, NMPF says.
Under the proposal, the price produc- ers are paid for milk in manufactured dairy product uses (as currently defined for Classes II, III and IV) would be a competitive price. There would be no minimum price for manufacturing milk.
Each region’s competitive price for milk used to produce cheese, in addition to being used to establish the Class I base price, would be used to determine the butter-powder plant pool credit and the lowest of the regional competitive cheesemilk prices would enter into the calculation of the Class I pool contribution.
NMPF says in order to stabilize pooled values and eliminate most plant depool- ing, the federal order pool would be a modified pooling of differentials, result- ing in a producer price differential. That is, instead of pooling four class prices, relatively stable price differentials and balancing credits would be paid into and out of a differential pool, as follows:
contribute to the pool the lagged differ- ence between their Class I price and the lowest regional competitive price. Both the Class I price and the lowest regional competitive price would be announced in advance and lagged in the same way.
manufacturing milk (products generally in Class II now) would contribute a fixed differential of 30 cents per hundredweight in the pool.
cheese would have no contribution or draw.
butter and milk powders would receive a payment from the pool when the national value of milk used to make butter and powder as calculated using the current Class IV formula adjusted for energy costs is less than the regional competitive cheesemilk price.
When the Class IV formula is higher than the regional competitive cheesemilk price, the Class IV handler would pay the difference into the pool. The payment to those who manufacture butter and milk powders would not exceed the funds available in the pool.
The blended result after the distribu- tion would be a producer price differential for all pooled producer milk that would be paid directly from the market admin- istrator.
Under the proposal, USDA would be required to hold hearings, when request- ed, for the purpose of considering and implementing proposals to compensate handlers that truly perform balancing services for the Class I market.
These hearings are to include but not be limited to: a plant balancing credit to manufacturing plants that provide balancing services to the market; and intramarket transportation credits for markets in which balancing is based on long shipments of milk from within the marketing area.
Under NMPF’s proposal, funds in each order’s pool would consist of:
Class I differential, and the difference between the Class I mover and the lowest regional competitive advanced Class III survey price, adjusted for the change in the NASS Cheddar price.
30-cent differential.
amount that the Class IV formula price (adjusted for energy costs of process- ing) is above the region’s competitive cheesemilk price.
If the Class IV price is below the region’s competitive cheesemilk price, the first distribution from an order’s pool would be to handlers of Class IV up to a maximum of the total funds available in the pool. The remaining pool balance would be paid to producers in the producer price differential, subject to location adjustments and other pool balancing adjustments, as is currently the case. So that the producer price differential cannot be negative, the draw for Class IV plants would not exceed the available pool balance.
The producer price differential would be paid directly to produc- ers and to producer co-ops to keep it separate from the competitive prices paid by manufacturers. CMN
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NEWS/BUSINESS April 22, 2011 — CHEESE MARKET NEWS® 13
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MINNEAPOLIS — Schwan’s Food Service Inc., a provider of pizza to K-12 schools in the United States, has an- nounced that it is introducing a new line of products that meet the HealthierUS School Challenge (HUSSC) guidelines as well as USDA’s newly proposed school meal guidelines.
To meet these guidelines, each serv- ing of the new products must have less
Schwan’s Food Service offers healthier versions of school lunch pizza, other products than 35 percent of total calories from fat, less than 10 percent of calories from saturated fat and 0 grams of trans fat.
In addition, entrée items must have less than 600 milligrams of sodium and be at least 51 percent whole grain.
“Our new pizza products set a new standard for school lunch pizza, con- firming that all pizza is not created equal,” says Jim Clough, president of
Schwan’s Food Service. “Great taste can be synonymous with great nutrition as we redefine s