12
Plant-Based Trend Will Continue To Grow In 2019, Prognosticators Agree commodity resources that remain available. Additional federal funds and commodities will not be pro- vided during the period of the par- tial government shutdown. —The child nutrition pro- grams, including school lunch, school breakfast, child and adult care feeding and special milk will continue operations into February. As a result of the way in which certain AMS programs are funded, a lapse in federal appropriations will have varying impacts on USDA’s ability to continue AMS activities. Among the AMS pro- grams that will continue to operate during the shutdown, in addition to Market News Service, are Dairy Grading and milk market adminis- tration (which are funded by user fees and assessments); and research and promotion programs. On Thursday, in response to inquiries from suppliers and con- tractors, AMS stated that it expects the shutdown to have “minimal impact” on most commodity pro- curement activities. For domestic food assistance programs, many employees of • See Shutdown, p. 12 Partial Government Shutdown Has Varying Impacts Across Agencies S e r v i n g t h e W o r l d ' s D a i r y I n d u s t r y W e e k l y Since 1876 C HEESE REPORTER Vol. 143, No. 28 • Friday, December 28, 2018 • Madison, Wisconsin Madison—The popularity of plant-based foods, particularly alternative dairy products, is slated to not only continue but flourish in the coming year, according to food trend analysts. The bright side for the dairy industry is that butter and other full-fat dairy products are back in demand with more consumers following keto and other low-carb diets. Innovative and artisan ice cream and other frozen novelties are also slated to be hot in 2019. Plant-based foods, fermented foods like yogurt, cannabis, and an ice cream renaissance top the list of 2019 trend predictions from the Specialty Food Associa- tion’s (SFA) Trendspotter Panel. The plant-based groundswell has established itself in consumer eating habits, SFA reported. Stretching beyond vegans and vegetarians, plant-based foods now hold broad appeal to consum- ers who are intrigued by health benefits and have concerns about how their food is sourced. In fact, plant-based eating will blossom into a movement, SFA said. The movement will become situated in the larger context of sustainability: inter- twined with upcycled products, as more companies turn to root- to-stem ingredients to combat food waste; snacks made from rescued bananas, or flours made with spent grains or pulp. Specific to dairy manufactur- ers, plant-based companies are creating new product categories and disrupting old ones. In addi- tion to continuing product roll- outs in snacks, and as dairy and • See Food Trends 2019, p. 6 Ground Broken For Expansion Of Byrne Dairy’s Ultra Dairy Plant; Additional Projects Planned DeWitt, NY—Ground has been broken for Byrne Dairy’s Ultra Dairy plant $24 million expansion, the first phase of the company’s $125 million plan to expand and create almost 250 jobs on Onon- daga county, NY, New York Gov. Andrew M. Cuomo announced late last week. The initial phase will cre- ate 30 new jobs and includes a 42,000-square-foot expansion that will enable the plant to increase its packaging capability as well as add additional processing capacity and storage space. In addition to the new jobs, the Ultra Dairy expansion will result • See Byrne Dairy Grows, p. 4 $5.10 $4.43 $5.00 $5.63 $5.83 $5.39 $5.42 $5.43 $4.91 $5.00 $5.23 2008 10 12 14 16 2018 Average Retail Cheddar Prices November 2008 - 2018 Price per pound Over 1 Billion Pounds Of California Milk Was Depooled In First Month Of New Federal Order Woodland, CA—More than 1 bil- lion pounds of milk was depooled in California in November, the first month in which the provi- sions of the new California federal milk marketing order were effec- tive, recently released statistics indicate. The now-defunct Califor- nia State Order (CSO) required almost all California Grade A milk received at a California dairy plant to be pooled. Under the new Cali- fornia federal order, only Class I milk is required to be pooled. In November, a total of 2.08 bil- lion pounds of milk was pooled in California, according to the “Sta- tistical Uniform Price Announce- ment” released earlier this month by the California market adminis- trator’s office. The order’s statisti- cal uniform price was $15.44 per hundredweight; that included a producer price differential (PPD) of $1.00 per hundred. California’s November milk production totaled 3.272 billion pounds, according to USDA’s National Agricultural Statistics Service (NASS). Thus, about 63.6 percent of California’s November milk production was pooled. By comparison, in November 2017, California’s milk production totaled 3.181 billion pounds. The volume of Grade A milk pooled under the CSO was just under 3 • See CA Federal Order, p. 8 USDA, NASS And ERS Are Shut Down; AMS Still Purchasing Activities, But Payments May Be Delayed Washington—The federal govern- ment partially shut down starting last Saturday, with varying impacts across agencies dealing with dairy, food and agriculture, including the US Department of Agriculture (USDA) and the US Food and Drug Administration (FDA). Some USDA activities will be shut down or significantly reduced and some USDA employees will be furloughed, US Secretary of Agriculture Sonny Perdue noted last Friday. The following USDA activi- ties, among others, have been shut down during the government shut- down: —National Agricultural Statis- tics Service (NASS) statistics, the monthly World Agricultural Sup- ply and Demand Estimates report, and other agricultural economic and statistical reports and projec- tions; and —Economic Research Service (ERS) commodity outlook reports, data products, research reports, staff analysis, and projections. USDA activities that will con- tinue in the short term include, among others: —USDA’s Market News Ser- vice, including Dairy Market News, which provides important market information to the indus- try. —Some farm payments, includ- ing Market Facilitation Program payments. —Trade mitigation purchases made by USDA’s Agricultural Marketing Service (AMS). —Agricultural export credit and other agricultural trade devel- opment and monitoring activities. However, the website for USDA’s Foreign Agricultural Service (FAS) is not being actively updated. —Eligible households will still receive monthly Supplemental Nutrition Assistance Program (SNAP) benefits for January. —Most other domestic nutri- tion assistance programs, such as the Commodity Supplemental Food Program and WIC, can con- tinue to operate at the state and local level with any funding and ® www. .com CUTTING EDGE SOLUTIONS

Partial Government Shutdown Has Over 1 Billion Pounds Of ... 28, 2018.pdf · certain AMS programs are funded, a lapse in federal appropriations will have varying impacts on USDA’s

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Page 1: Partial Government Shutdown Has Over 1 Billion Pounds Of ... 28, 2018.pdf · certain AMS programs are funded, a lapse in federal appropriations will have varying impacts on USDA’s

Plant-Based Trend Will Continue To Grow In 2019, Prognosticators Agree

commodity resources that remain available. Additional federal funds and commodities will not be pro-vided during the period of the par-tial government shutdown.

—The child nutrition pro-grams, including school lunch, school breakfast, child and adult care feeding and special milk will continue operations into February.

As a result of the way in which certain AMS programs are funded, a lapse in federal appropriations will have varying impacts on USDA’s ability to continue AMS activities. Among the AMS pro-grams that will continue to operate during the shutdown, in addition to Market News Service, are Dairy Grading and milk market adminis-tration (which are funded by user fees and assessments); and research and promotion programs.

On Thursday, in response to inquiries from suppliers and con-tractors, AMS stated that it expects the shutdown to have “minimal impact” on most commodity pro-curement activities.

For domestic food assistance programs, many employees of

• See Shutdown, p. 12

Partial Government Shutdown Has Varying Impacts Across Agencies

Serv

ing

theWorld's Dairy Industry W

eekly

Since 1876

CHEESE REPORTER Vol. 143, No. 28 • Friday, December 28, 2018 • Madison, Wisconsin

Madison—The popularity of plant-based foods, particularly alternative dairy products, is slated to not only continue but flourish in the coming year, according to food trend analysts.

The bright side for the dairy industry is that butter and other full-fat dairy products are back in demand with more consumers following keto and other low-carb diets. Innovative and artisan ice cream and other frozen novelties are also slated to be hot in 2019.

Plant-based foods, fermented foods like yogurt, cannabis, and an ice cream renaissance top the list of 2019 trend predictions from the Specialty Food Associa-tion’s (SFA) Trendspotter Panel.

The plant-based groundswell has established itself in consumer eating habits, SFA reported. Stretching beyond vegans and

vegetarians, plant-based foods now hold broad appeal to consum-ers who are intrigued by health benefits and have concerns about how their food is sourced.

In fact, plant-based eating will blossom into a movement, SFA said. The movement will become situated in the larger context of sustainability: inter-twined with upcycled products, as more companies turn to root-to-stem ingredients to combat food waste; snacks made from rescued bananas, or flours made with spent grains or pulp.

Specific to dairy manufactur-ers, plant-based companies are creating new product categories and disrupting old ones. In addi-tion to continuing product roll-outs in snacks, and as dairy and

• See Food Trends 2019, p. 6

Ground Broken For Expansion Of Byrne Dairy’s Ultra Dairy Plant; Additional Projects PlannedDeWitt, NY—Ground has been broken for Byrne Dairy’s Ultra Dairy plant $24 million expansion, the first phase of the company’s $125 million plan to expand and create almost 250 jobs on Onon-daga county, NY, New York Gov. Andrew M. Cuomo announced late last week.

The initial phase will cre-ate 30 new jobs and includes a 42,000-square-foot expansion that will enable the plant to increase its packaging capability as well as add additional processing capacity and storage space.

In addition to the new jobs, the Ultra Dairy expansion will result

• See Byrne Dairy Grows, p. 4

$5.10$4.43

$5.00$5.63

$5.83$5.39

$5.42$5.43

$4.91$5.00

$5.23

2008 10 12 14 16 2018

Average Retail Cheddar PricesNovember 2008 - 2018Price per pound

Over 1 Billion Pounds Of California Milk Was Depooled In First Month Of New Federal OrderWoodland, CA—More than 1 bil-lion pounds of milk was depooled in California in November, the first month in which the provi-sions of the new California federal milk marketing order were effec-tive, recently released statistics indicate.

The now-defunct Califor-nia State Order (CSO) required almost all California Grade A milk received at a California dairy plant to be pooled. Under the new Cali-fornia federal order, only Class I milk is required to be pooled.

In November, a total of 2.08 bil-lion pounds of milk was pooled in California, according to the “Sta-tistical Uniform Price Announce-ment” released earlier this month by the California market adminis-trator’s office. The order’s statisti-cal uniform price was $15.44 per hundredweight; that included a producer price differential (PPD) of $1.00 per hundred.

California’s November milk production totaled 3.272 billion pounds, according to USDA’s National Agricultural Statistics Service (NASS). Thus, about 63.6 percent of California’s November milk production was pooled.

By comparison, in November 2017, California’s milk production totaled 3.181 billion pounds. The volume of Grade A milk pooled under the CSO was just under 3

• See CA Federal Order, p. 8

USDA, NASS And ERS Are Shut Down; AMS Still Purchasing Activities, But Payments May Be DelayedWashington—The federal govern-ment partially shut down starting last Saturday, with varying impacts across agencies dealing with dairy, food and agriculture, including the US Department of Agriculture (USDA) and the US Food and Drug Administration (FDA).

Some USDA activities will be shut down or significantly reduced and some USDA employees will be furloughed, US Secretary of Agriculture Sonny Perdue noted last Friday.

The following USDA activi-ties, among others, have been shut down during the government shut-down:

—National Agricultural Statis-tics Service (NASS) statistics, the monthly World Agricultural Sup-ply and Demand Estimates report, and other agricultural economic and statistical reports and projec-tions; and

—Economic Research Service (ERS) commodity outlook reports,

data products, research reports, staff analysis, and projections.

USDA activities that will con-tinue in the short term include, among others:

—USDA’s Market News Ser-vice, including Dairy Market News, which provides important market information to the indus-try.

—Some farm payments, includ-ing Market Facilitation Program payments.

—Trade mitigation purchases made by USDA’s Agricultural Marketing Service (AMS).

—Agricultural export credit and other agricultural trade devel-opment and monitoring activities. However, the website for USDA’s Foreign Agricultural Service (FAS) is not being actively updated.

—Eligible households will still receive monthly Supplemental Nutrition Assistance Program (SNAP) benefits for January.

—Most other domestic nutri-tion assistance programs, such as the Commodity Supplemental Food Program and WIC, can con-tinue to operate at the state and local level with any funding and

®www.

.com

CUTTING EDGESOLUTIONS

Page 2: Partial Government Shutdown Has Over 1 Billion Pounds Of ... 28, 2018.pdf · certain AMS programs are funded, a lapse in federal appropriations will have varying impacts on USDA’s

CHEESE REPORTERPage 2 December 28, 2018

Cheese Reporter Publishing Co. Inc. ©2018

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

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

DICK GROVES

Publisher/Editore-mail: [email protected]

608-316-3791MOIRA CROWLEY

Specialty Cheese Editore-mail: [email protected]

608-316-3793

KEVIN THOME

Advertising & Marketing Directore-mail: [email protected]

608-316-3792

BETTY MERKES

Classifieds/Circulation Managere-mail: [email protected]

608-316-3790

REGULAR CONTRIBUTORS:Jen Pino-Gallagher, Bob Cropp, Neville

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

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

California Cheese & Butter AssociationLisa Waters,

1011 Pebble Beach Dr, Clayton, CA 94517

Central Wisconsin Cheesemakers’ and Buttermakers’ Association

Jim [email protected]

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

Eastern Wisconsin Cheesemakers’ and Buttermakers’ Association

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

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

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

Jamestown, MO 65046

Nebraska Cheese AssociationEd Price, Fremont, NE 68025

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

Cornell University, Ithaca, NY 14853

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

Brookings, SD 57007

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

Ohio Swiss Cheese AssociationLois Miller, P.O. Box 445,Sugar Creek, OH 44681

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

Brookings, SD 57007

Southwestern Wisconsin Cheese Makers’ Association

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

Wisconsin Association for Food ProtectionBob Wills

PO Box 620705, Middleton WI 53562

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

Suite 402, Madison, WI 53718

Wisconsin Dairy Products AssociationBrad Legreid, 8383 Greenway Blvd.,

Middleton, WI 53562

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

the trade wars will continue into the new year, and it might well be that the real impacts of the trade wars will be felt in 2019.

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

D I C K G R O V E S

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

EDITORIAL COMMENT

2018: The Year Of The Trade WarsLet’s face it: there are times when it’s pretty easy to come up with an overriding “theme” for a particular year in dairy. In 2014, for exam-ple, it would have been pretty dif-ficult not to come up with a theme related to the record-high prices achieved that year — records that ranged from cheese and butter to Class III and mailbox prices.

This year also seems to be pretty easy to classify: 2018 has been the year of the trade wars. It’s just been awfully difficult to find a single overriding issue that’s had as much of an impact, or as much potential impact, as the ongoing trade wars being waged between the US and some of its closest trade partners, including Mexico and China, to name two countries that greatly impact US dairy exports.

At the start of 2018, it didn’t really seem that trade wars were going to be a dominant issue. Indeed, in our first issue of 2018, we noted that the US had “basi-cally backpedaled” on trade agree-ments in 2017, withdrawing from the Trans-Pacific Partnership agreement and launching talks to modernize the North American Free Trade Agreement.

The trade wars didn’t actu-ally amount to “front-page news” until our Mar. 9th issue, when we reported that President Trump was imposing tariffs on steel and alu-minum imports from a variety of US trading partners, ranging from Canada and Mexico to China and Brazil.

That move was greeted with a fair amount of criticism from a vari-ety of dairy, food and farm organi-zations, several of which predicted, correctly as it turned out, that the US tariffs would invite retaliatory tariffs from US trading partners.

By July, the economic impact of those retaliatory tariffs was becoming clearer to the US dairy industry. National Milk Produc-ers Federation estimated that the tariffs would cost US dairy farm-ers $1.8 billion just through the remainder of 2018, based on the decline in milk futures prices since

they were imposed. And keep in mind that the tariffs remain in effect as we head into 2019.

The good news in 2018 is that the US, Mexico and Canada did agree on a new NAFTA, dubbed the United States-Mexico-Canada Agreement, or USMCA. The bad news is that, thanks to ongoing tar-iffs being imposed on Mexico’s alu-minum exports to the US, Mexico is continuing to impose tariffs on US cheese exports to that country, which happens to be the leading US market for such exports.

Or, as Michael Dykes, president and CEO of the International Dairy Foods Association, noted at a late-November Capitol Hill briefing on the USMCA and ongoing US tariffs on aluminum imports from Mexico, IDFA’s members “are very pleased that the USMCA nego-tiations are complete and Mexico remains a duty-free market but until the Section 232 tariffs are lifted, US dairy’s access to the Mexican market is at risk.”

Last week provided a nice illus-tration of the importance of the trade war issue to US agriculture. On Monday, Secretary of Agricul-ture Sonny Perdue announced a second round of trade mitigation payments to dairy and other farm-ers suffering from damage due to trade retaliation by foreign nations.

Three days later, President Trump signed the 2018 farm bill into law, a move that drew wide-spread praise from various ag and dairy organizations.

But while praising one or both of those announcements, there was a clear message from ag stakehold-ers: the ongoing trade wars must be ended.

For example, while he wel-comed USDA’s announcement of a second round of trade mitigation payments to farmers, Jim Mulhern, NMPF’s president and CEO, noted that the tit-for-tat tariffs that prompted the payments “continue to inflict damage across the farm economy,” and urged the admin-istration “to resolve tensions with key trading partners, including

China and Mexico, as the best way to assist farmers going forward.”

And Jeff Lyon, general man-ager of FarmFirst Dairy Coopera-tive, asked that the administration “quickly resolve the trade conflict that exists between US trading partners, China and Mexico, and quickly lift the retaliatory tariffs currently in place as they continue to challenge dairy markets.”

Unfortunately, the trade wars will continue into the new year, and it might well be that the real impacts of the trade wars will be felt in 2019. Keep in mind that it wasn’t until almost the middle of 2018 when countries such as Mexico and China imposed their retaliatory tariffs on various US products, including cheese and whey.

It’s worth remembering that, for example, US dairy exports to China during the first half of 2018 were up 11 percent (on a value basis) compared to the first half of 2017, but by October, they were running 8 percent behind year-earlier levels (the first 10 months of each year).

How might US dairy exports to China fare if China’s retaliatory tariffs remain in place for all of 2019? Keep in mind that China is the number one export market for US dried whey and whey protein concentrate, among other prod-ucts.

The year 2018 has been a monu-mental year for the dairy industry, partly because California joined the federal milk marketing order system — something that would have been unheard of a couple of decades ago. The year also saw completion of an on-time farm bill, something that, as noted in this space last week, doesn’t hap-pen very often.

But when it comes to short- and long-term impacts, 2018 will likely long be remembered in the dairy industry as “the year of the trade wars.”

Cheese Reporter welcomes letters to the editor. Comments should be sent to Dick Groves, at [email protected]

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CHEESE REPORTERDecember 28, 2018 Page 3

For more information, visit www.loosmachine.com

87% Of Foods Now Have Either ‘BEST If Used By’ Or ‘USE By’ Labels: GMA Washington—Since a date label-ing initiative was launched by the Grocery Manufacturers Associa-tion (GMA) and Food Marketing Institute (FMI) early last year, 87 percent of products now carry either a “BEST If Used By” or “USE By” labels, GMA reported earlier this month.

With more than 10 different and confusing label options — such as sell by, enjoy by, fresh until, best before and others — consumers were confused by if and when they should discard food and beverage products, GMA noted.

To address this confusion, GMA and FMI brought together 25 CPG and grocery retail companies to simplify and streamline the num-ber of labels. They narrowed date labeling down to just two catego-ries: BEST If Used By and USE By.

BEST If Used By indicates to the consumer that, after a specified date, the product may not taste or perform as expected but can still be used or consumed. USE By applies to perishable products that should be consumed by the date on the package and discarded after that date.

“Our industry is committed toempowering consumers to make informed decisions about the prod-ucts they bring into their homes,” said Geoff Freeman, GMA’s presi-dent and CEO. “This is a proactive industry that put forward a proac-tive solution to give American families the confidence and trust they deserve in the goods they buy.”

According to a survey con-ducted by GMA this month, 87 percent of products have adopted the streamlined phrases, and a 98 percent adoption rate is projected by the end of 2019.

Complete adoption is expeccted by January 2020, in conjunction with the new FDA Nutrition Facts panel.

GMA’s survey found that, as of this month, more than 32,000 products carried the streamlined language.

Some 88 percent of consumers surveyed by GMA said that the streamlined date labels are clear to them, and 85 percent of consumers say that the streamlined date labels are helpful to them.

When consumers were asked how narrowed date labels would be helpful to consumers, the top benefits were: feeling safer about the foods they eat; believing they would throw less away; saving money by throwing less away; and being more confident in the prod-ucts they use.

“Date labeling is a step toward meaningful food waste reduction that makes it easier for Americans to shop smarter and throw away less,” Freeman said.

“Eliminating confusion for con-sumers by using common product date wording is a win-win because it means more products will be used instead of thrown away in error. It’s much better that these products stay in the kitchen, and out of landfills,” said Ralph Scoz-zafava, chief executive officer of Dean Foods Company.

“The customer comes first in our business, and this voluntary indus-try initiative provides shoppers with clear, easily understood date label information, so our custom-ers can be confident in the prod-uct’s quality and safety,” said Joe Colalillo, president of ShopRite of Hunterdon County, Inc., and

chairman and CEO of Wakefern Food Corp.

“Clarifying and standardiz-ing date label language is one of the most cost effective ways that we can reduce the 40 percent of food that goes to waste each year in the United States,” said Emily Broad Leib, director, Harvard Law School Food Law and Policy Clinic (FLPC).

“I am thrilled to see GMA and FMI incorporate FLPC’s recom-mendations and take this critical step toward making date labels clearer, so that consumers can make better decisions and reduce needless waste of food and money,” Broad Leib added.

“I am pleased to see the grocery manufacturing and retail industries tackling this issue head on. Not every issue warrants a legislative

fix, and I think this industry-led, voluntary approach to standard-izing date labels is a prime exam-ple,” said US Rep. Mike Conaway (R-TX), chairman of the House Agriculture Committee.

“Commonsense, standard food labels save money and reduce food waste,” said US Sen. Richard Blu-menthal (D-CT). “This voluntary initiative is a positive first step toward streamlining the dizzying patchwork of arbitrary and confus-ing food date labels.”

With widespread adoption of the streamlined labels, GMA is turning to social media to set a 2019 goal for every US household to throw out 10 items less than they did the year before.

For more information about the date labeing issue, visit www.gma-online.org.

Page 4: Partial Government Shutdown Has Over 1 Billion Pounds Of ... 28, 2018.pdf · certain AMS programs are funded, a lapse in federal appropriations will have varying impacts on USDA’s

CHEESE REPORTERPage 4 December 28, 2018

from our archives

50 YEARS AGODec. 27, 1968: Madison—Wis-consin producers of manufactur-ing-grade milk have no need to be concerned regarding a proposed federal crackdown on sanitation standards for milk. The proposal would include state inspection of herd health, milking proce-dures, milking equipment, hous-ing, sanitation and water supply, along with milk.

Milwaukee, WI—“Adventures in Marketing” or “The Name of the Game is Profit” is the theme of the fifth annual Wisconsin Cheese Seminar here this spring, announced this week by seminar president Daniel J. Carter.

25 YEARS AGODec. 31, 1993: Bloomington, MN—The USDA will con-vene a hearing here later this month to consider proposals for multiple component pricing in five federal milk marketing order states, including the Chi-cago Regional, Upper Midwest, Nebraska-Western Iowa, East-ern South Dakota and Iowa.

Chateaugay, NY—The cheese-making traditions of New York State have joined with tech-nology from Finland to make European specialty cheeses at McCadam Cheese Company, a subsidiary of Finland’s Valio International. Brian Lee, plant manager here, reports that all machinery has been replaced or relocated for installation of the most up-to-date specialty cheese manufacturing equipment.

10 YEARS AGODec. 26, 2008: Washington—Sign-up for the Milk Income Loss Contract (MILC) program began this week and will continue through the program’s expiration on Sept. 30, 2012. Eligible dairy producers are those who commer-cially produce and market cow milk in the US; or produce milk in the US and commercially market milk outside the US.

Milan, Italy—With data show-ing a growing under-class and food lines in most major cities, the Italian government has come up with a way to help the needy while propping up one of its iconic industries. Agriculture Minister Luca Zaia has committed to buy-ing 100,000 66-pound wheels each of Parmigiano Reggiano and Grana Padano cheese – prices for which have fallen – to donate to the needy. For more information, visit www.drtechinc.com

WPC, Nonfat Dry Milk Also Added; Entry Deadline in January 31Madison—For the first time, the US Championship Cheese Con-test will feature classes for dried milk and whey products, according to the Wisconsin Cheese Makers Association (WCMA), contest host organization.

The nine new classes for techni-cal evaluation include: Dry Whey, Nonfat Dry Milk and Skim Milk Powder, Whole Milk Powder, Whey Protein Concentrate 34, Whey Protein Concentrate 80, Whey Protein Isolate 90, Whey Permeate, Milk Protein Concen-

2019 US Championship Cheese Contest Adds Dried Milk, Whey Product Classes

real-time access to product scores and evaluations through MyEn-tries, a secure online entry system at USChampionCheese.org.

The deadline for contest entries is January 31, 2019. The fee for online submissions is $65 per prod-uct, a $10 savings from the cost of paper entries.

“The makers of dried milk ingre-dients and whey powders operate in an increasingly competitive global marketplace, and we’re pleased to offer them the opportunity for impartial, expert analysis, and for a win that helps them market their highest-quality products,” Strohm-enger said.

Competitors with questions can contact WCMA’s Kirsten Strohm-enger via email at [email protected] or by telephone at (608) 286-1001.

trate and Milk Protein Isolate.“Cheese and butter makers

across the country have harnessed the marketing power of winning a gold, silver, or bronze medal at our contest, and it’s no surprise that dry dairy ingredient processors want to compete too,” said WCMA events manager Kirsten Strohmenger.

The contest will be held March 5-7 at the Lambeau Field Atrium in Green Bay, WI.

Competitors in these dried milk and whey classes will submit a prod-uct sample weighing one pound per each entry, and are limited to two entries per class, per manufactur-ing site.

Like all entrants, they will have

Byrne Dairy Grows(Continued from p. 1)

in the retention of almost 200 jobs at the plant.

Byrne Dairy’s Ultra Dairy plant first opened in 2004. The plant uses and ultra-high-temperature (UHT) pasteurization process to extend shelf life of up to 150 days. Ultra Dairy processes conven-tional and organic milks, creams, and other dairy products as well as a variety of non-dairy products. The expansion will enable Byrne Dairy to substantially increase out-put by adding processing capac-ity and increasing efficiencies in downstream equipment.

In addition to the Ultra Dairy expansion, Byrne Dairy has pro-posed several additional projects at its other production and ware-house facilities. These additional projects include a further expan-sion of the Ultra Dairy facility,

expansion of the company’s yogurt and cultured products facility in Cortlandville, and an expansion of its warehouse capabilities in Syra-cuse and DeWitt which will result in the creation of 248 new jobs.

The projects are being supported by a $7.5 million CNY Rising upstate Revitalization Initiative Grant, and another $7.5 million through the Excelsior Tax Credit Program in exchange for the job creation commitments.

“We’re excited to begin this next chapter of Ultra Dairy’s growth. Our ability to expand to meet the growing demands of our customers is critical to the success of not only Byrne Dairy, but also family farms throughout central New York,” said Carl Byrne, presi-dent and CEO of Byrne Dairy.

Originally founded in 1933, Byrne Dairy currently has four manufacturing facilities, including a fresh dairy plant and ice cream

plant located in Syracuse, the UHT plant in DeWitt, and the cultured products plant located in Cortlandville.

The company also has wholesale distribution centers throughout New York state and in Massachu-setts.

And it operates a chain of over 60 convenience stores throughout upstate New York.

“This expansion is excellent news for our dairy producers, who are facing many challenges in today’s marketplace, and for Byrne Dairy, an excellent long-standing New York state proces-sor,” said Richard Ball, New York state’s agriculture commissioner. “Through its participation in the New York State Grown & Certi-fied program, Byrne Dairy is assist-ing in the state’s efforts to promote local dairy that is produced with a focus on food safety and environ-mental sustainability.”

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CHEESE REPORTERDecember 28, 2018 Page 5

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Human Brucellosis Infection In New York Linked To Raw Milk Products From Pennsylvania FarmAlbany, NY, and Harrisburg, PA—Consumers who purchased unpasteurized (raw) cow’s milk or dairy products from Miller’s Biodi-versity Farm in Lancaster county, PA, should immediately discard those products, the Pennsylvania Department of Agriculture (PDA) advised last weekend.

Officials in New York state noti-fied the PDA that raw milk prod-ucts purchased at the farm may contain a strain of Brucella abortus (RB51).

PDA has issued an order of quarantine to halt the sale of dairy products made from raw cow’s milk from the farm while an investiga-tion is conducted. Pasteurized dairy products from Miller’s Biodiversity Farm have been deemed safe.

One individual in New York state has been diagnosed with RB51. An investigation identified raw milk or other dairy products from Miller’s Biodiversity Farm in Lancaster county, PA, as the likely source of the infection, according to New York state agencies.

New York State Department of Health’s Wadsworth Center Labo-ratory, in conjunction with the US Centers for Disease Control and Prevention, confirmed the infec-tion. RB51 causes no symptoms in cattle, but can be spread from cattle to humans, the PDA noted.

Dairy-Supplemented Mediterranean Diet More Effective For Heart DiseaseAdelaide, South Australia—New research from the University of South Australia (UniSA) shows a dairy-enhanced Mediterranean diet will significantly increase health outcomes for those at risk of cardiovascular disease, and it’s even more effective than a lowfat diet.

In this UniSA study, published by the American Journal of Clini-cal Nutrition, researchers compared the health benefits of a MedDiet supplemented with two to three servings of dairy each day, and a

generic lowfat diet.The results show that the dairy-

supplemented MedDiet (Med-Dairy) significantly improved blood pressure, heart rate, choles-terol, mood and cognitive func-tion.

Ph.D. candidate Alexandra Wade said the new MedDairy diet challenges popular perceptions of what is considered healthy.

“The MedDiet is fast earning a reputation as the world’s healthiest diet and is renowned for deliver-ing improved cardiovascular and cognitive health,” Wade said. “But it’s also higher in fat, which can be a deterrent for people seeking to adopt a healthier eating plan, especially if they don’t realize the difference between healthy and unhealthy fats.

“In Australia, lowfat diets are often recommended for improv-ing heart health and they are still perceived as being healthy,” Wade continued. “This study shows that the new MedDairy works better than a generic lowfat diet, ensuring better health outcomes for people at risk of cardiovascular disease.”

A typical MedDiet includes extra virgin olive oil, fruits, veg-etables, nuts, seeds, legumes, whole grain breads, pastas and cereals, moderate consumption of fish and red wine, and low consumption of red meat, sweet and processed foods. It also includes one to two servings of dairy foods, which is less than half the dairy recommended by the Australian National Health and Medical Research Council (NHMRC) for older Australians.

Low-Carb Diet Found To Help Maintain Weight LossLondon, England—A low-car-bohydrate diet could help people maintain their weight loss by increasing the number of calories burned, a large US feeding trial published in The BMJ recently found.

It is well known that energy expenditure declines with weight loss, as the body adapts by slow-ing metabolism and burning fewer calories, often resulting in weight regain, researchers noted. But little is known about how dietary com-position influences this adaptive response over the long term.

One theory (known as the carbohydrate-insulin model) is that recent increases in the con-sumption of processed, high gly-cemic load foods trigger hormonal changes that increase hunger and make people more likely to gain weight.

To better understand the role of dietary composition on energy expenditure, researchers at Boston Children’s Hospital set out to com-pare the effects of diets varying in carbohydrate to fat ratio on energy expenditure over a 20-week period.

The trial involved 234 over-weight adults aged 18 to 65 years with a body mass index (BMI) of 25 or higher who took part in an initial weight loss diet for about 10 weeks. Of these, 164 achieved the

target weight loss of around 10 per-cent of body weight and were then randomly assigned to follow either a high (60 percent), moderate (40 percent), or low (20 percent) car-bohydrate diet for 20 weeks.

Each participant was provided with fully prepared meals with a similar protein and fat content. The researchers then tracked par-ticipants’ weight and measured energy expenditure to compare how the different groups burned calories at the same weight.

After adjusting for potentially influential factors, researchers found that over the 20 weeks, total energy expenditure was signifi-cantly greater in participants on the low-carb diet compared with the high-carb diet.

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CHEESE REPORTERPage 6 December 28, 2018

VIRGINIE SAULNIER has been hired by Agri-Mark as vice presi-dent of global sales, succeeding PETER GUTIERREZ, who will retire from Agri-Mark at the end of the year. Saulnier returns to Agri-Mark from Saputo, where she served as sales manager, ingredients, with responsibility for domestic and international sales of whey derivatives pro-duced in the US, Argentina, Australia and Canada. Before Saputo, Saulnier worked for four years as export sales manager, ingredients, at Agri-Mark.

JASON MONACO has been named chief financial officer at Borden, effective immediately. Monaco brings more than 20 years of business and finance leadership experience, with extensive knowledge of financial planning and analysis, risk man-agement and trade promotion management. ERIC DOWNUM has been promoted from director of financial planning and analy-sis to vice president. In his new role, Downum will lead the bud-geting, forecasting and analysis for Borden.

Quest Industrial LLC has hired BRIAN KEULER as vice presi-dent of sales, and promoted RICHARD HULLENHOUR to vice president of technology and BRITTANY DEEM to vice pres-ident of finance. “Rapid growth in the automation industry and the overall maturing of our com-pany has permitted us additional opportunities to hire and pro-mote good-quality employees,” said president Bill Weichmann.

The Wisconsin Farm Bureau Federation (WFBF) has hon-ored ROGER CLIFF with the Distinguished Service to Wis-consin Agriculture Award at the Federation’s 99th annual meeting recently. Cliff began his career at WFBF in 1973 as a lobbyist. During his tenure, he worked with eight governors and hundreds of legislator to help shape agricultural policy.

Former US Agriculture Secre-tary Bob Bergland, 90, died Dec. 9, 2018, at a nursing home in Roseau, MN. Bergland worked for the US Department of Agri-culture’s Ag Stabilization and Conservation Service from 1963 to 1968. Two years later, he was elected to his first of four terms in Congress, and served on the House Agriculture Committee and on its dairy subcommittee. Bergland served as agriculture secretary from 1977 to 1981, dur-ing the Carter administration.

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Food Trends 2019(Continued from p. 1)

protein alternatives, plant-based foods’ rise across the foodservice sector will be significant in 2019, according to SFA.

In 2019, seed butters like sun-flower, pumpkin and watermelon seed butters will grab the attention of shoppers looking for the same healthy fat profile of nut butters, but offer an alternative for those with nut allergies.

KIND predicts meat and dairy-free alternatives will continue to become more mainstream, with new products using beans, seeds, nuts, water lentils and even algae as primary ingredients across dairy-free yogurt and cheese categories.

Plant proteins and plant-based swaps like non-dairy milk have bumped kale from the top 10 list of superfoods in Pollock Commu-nications’ seventh annual “What’s Trending in Nutrition” survey.

“Plant-based eating has been a major focus in the dietetic com-munity,” said registered dietetic nutritionist Jenna Bell.

The supermarket milk case has gone from cow to soy, rice, almond, coconut, walnut and oats, accord-ing to the survey. Consumers are fulfilling their health and protein needs with a diverse number of dairy and non-dairy products.

Yogurt, Other Fermented FoodsConsumers will find a growing number of products rich in probi-otics and flavor in the coming year, according to Kroger’s top 10 food predictions for 2019, and the num-ber one superfood in Pollock Com-munications’ survey is fermented foods like yogurt and kombucha.

Refrigerated ready to drink (RTD) functional beverages have grown 20 percent in retail sales, according to SFA’s State of the Specialty Food Industry research.

Probiotic-friendly kombucha has led the charge, and more fer-mented functional beverages tout-ing health, tradition, and flavor are on the horizon. Drinking vin-egars, which are high in probiotics, amino acids, and antioxidants, will also continue to emerge.

Keto Craze Brings Back ButterFull-fat dairy is back in a big way with the sustained popularity of extreme diets like keto, paleo and “grain free.”

Liz Moskow, culinary director at Sterling-Rice Group (SRG), said in the Group’s sixth annul Culi-nary Trends report that trendy diets like keto are “giving consum-ers permission to eat things that were previously considered bad for you. This gives full-fat dairy and other foods a seat at the table.”

Fat Bombs are the new anti-dote to hunger and ketosis, SRG reported. Butter now appears on restaurant menus at an all-time high of 64 percent.

Integrations of fat sources like keto-friendly nutrition bars crafted with MCT oil powder, will be big, Whole Foods reported. Coco-nut butter–filled chocolates, “fat bomb” snacks and a wave of ready-to-drink vegan coffee beverages inspired by butter coffees are bust-ing on the scene. Popcorn made with grass-fed ghee and flavors of ghee that range from sweet to savory will also be in high demand.

Ice Cream RenaissanceIce cream and other frozen novel-ties – both non-dairy and artisan – will see growing consumer appeal in the coming year.

The reinvention of ice cream started last year with dairy-free varieties made with coconut, almond, or soy milks, then Halo Top entered the scene with its high-protein, low-calorie product that others are emulating, Whole Foods reported.

Now manufacturers are blend-ing vegetables like cauliflower and carrots into ice creams, and inno-vations will continue to drive the category.

Boutique creameries known for local, hand-crafted, and indulgent ices creams are also expanding nationally. Whole Foods Market predictions for the coming year are ice creams and frozen novel-ties with innovative bases like avo-cado, hummus, tahini and coconut water, along with artisanal ice creams with savory swirls of spe-cialty cheese.

Globally-inspired frozen des-serts are taking the stage – possibly sparked by 2018’s mochi ice cream obsession and a Thai rolled ice cream craze – with icy indulgences like airy Taiwanese snow ice and Mexican nieves de garrafa, as well as stretchy, chewy, Turkish ice creams that get their unique tex-ture from mastic and other unique sources.

Snacking Goes FancySnacking across the board will take a turn toward the upscale as it starts to usurp the usual three-meals-a-day routine, according to Whole Foods Market. Snack-ing has become an occasion of its very own, with cheese boards for one: one-ounce portions of cheese paired with demi-baguettes as desk snacks and more mini meals.

More takes on snacking nod to the comforting treats of a second grade lunch box, with better ingre-dients. Portable snack packages will feature bites like prosciutto and aged Mozzarella, and arti-sanal versions of classic snacks like cheese or peanut butter cracker sandwiches.

The “snackification” of food is a big trend for 2019, according to Innova Market Insights. For most consumers, snacking is a part of daily life and always has been.

Packaging Even More ImportantSoliciting consumer trust through values conveyed on product pack-aging and, in some cases, the mate-rial of which it’s made, will be more visible in the coming year, trend analysts agree.

Sustainable packaging will grow, especially plant-based vari-eties, along with packaging made of upcycled ingredients or scraps. Research is advancing the use of tomato peels, kelp, and mushrooms into alternatives, coatings, and other packaging materials.

The number of brands making the switch to packaging with the environment in mind continues to grow at a quickening pace, accord-ing to Whole Foods Market.

Some companies are making commitments to ban straws, while others are setting up regional pilots to test recyclable strawless, sip-per lids made from PET, without increasing the plastic content of a lid/straw combination.

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CHEESE REPORTERDecember 28, 2018 Page 7

For more information,visit www.relco.net/cheesereporter

Brad Pfaff Named Wisconsin’s New WDATCP SecretaryMadison—Wisconsin Gover-nor-elect Tony Evers last Friday announced the appointment of Brad Pfaff as secretary of the Wis-consin Department of Agriculture, Trade and Consumer Protection (WDATCP).

Pfaff currently serves as the dep-uty chief of staff to US Rep. Ron Kind.

Previously, Pfaff served in USDA’s Farm Service Agency (FSA) as executive director in Wisconsin and as national deputy administrator for farm programs at USDA. Prior to joining USDA, he had worked for Kind for several years.

At the WDATCP, Pfaff will succeed Sheila Harsdorf, who has served as the agency’s secretary since November 2017.

Jeff Lyon, general manager of FarmFirst Dairy Cooperative in Madison, has had a “long and pos-itive working relationship” with Pfaff, early in Pfaff’s career as a leg-islative staffer for Kind and later as Kind’s district director and as head of FSA.

“Brad has a history of working with all groups for the betterment of agriculture,” said Lyon, who served as deputy secretary of the WDATCP for almost eight years before becoming FarmFirst Dairy Co-op’s general manager early this year.

Food Safety Controls To Reduce Risks In Raw Milk Cheeses Outlined In ReportAberdeen, Scotland—A report prepared for Food Standards Scotland outlines the scientific evidence on food safety controls which can be used to reduce the risks of food poisoning bacteria in the production of raw milk cheeses.

The report was prepared by Dr. Catherine Donnelly, a food sci-ence professor at the University of Vermont and an expert in dairy microbiology. It was prepared for Food Standards Scotland to sup-ply evidence for Scottish artisan cheese makers and enforcement officials in managing the micro-biological safety of artisan cheeses, particularly those produced from raw (unpasteurized) milk.

Currently, there are no restric-tions regarding the sale of raw milk cheese in Scotland, provided that these products have been produced in compliance with European Union (EU) food hygiene regula-tions.

Many studies have shown that the microbiological risk of cheeses made from unpasteur-ized milk can be reduced by the use of hygienically produced milk of high microbiological quality, proper acidification and ripening (maturation) processes and con-stant monitoring of the hygiene environments for milk production, cheesemaking and the post-man-ufacturing stage, the report said. Carefully selected time and ripen-ing temperature combinations and acidification processes can pre-vent the growth of unwanted and potentially harmful bacteria that may cause spoilage and foodborne disease.

Some studies have also shown that 60-day aging can improve the microbiological quality of some cheeses made from raw milk and this is a legal requirement in the US, the report pointed out.

However, other studies have demonstrated that 60-day aging may not be effective against exist-ing E. coli 0157 and therefore a risk of foodborne illness may still exist.

Foodborne pathogens includ-ing Listeria monocytogenes, Sal-monella spp. and Staphylococcus aureus have been shown to be controlled by the naturally occur-ring bacteriocinogenic lactic acid bacteria (LAB) found in raw milk, but there has been limited suc-cess against Shiga toxin-producing Escherichia coli (STEC).

The interactions between phys-icochemical conditions (such as pH or water activity) and natu-ral microflora in the production of cheeses made from raw milk, and how the resulting condi-tions impact on the survival and growth of pathogens, is not well understood, the report noted. As

current microbiological modeling programs do not typically take into account the competition between pathogens and raw milk micro-flora, it is challenging for cheese makers to demonstrate how patho-gens are being controlled through their production process using such programs.

The main pathogens of con-cern targeted for control in cheese made from raw milk are Staphy-lococcus aureus, Salmonella, Lis-teria monocytogenes, and Shiga toxin-producing Escherichia coli. Contamination of raw milk by pathogens cannot be completely eliminated despite efforts to con-trol milk hygiene; therefore, cheese makers must implement a range of strict controls to ensure a safe end product.

For each cheese type produced in Scotland, consideration must be given to the impact of the source of raw milk, including: animal breed, type of feed (dry hay and pasture versus silage), raw milk testing (including milk filters), raw milk handling, storage and transporta-tion, environmental monitoring and control of the cheesemaking environment, cleaning and sanita-tion and good manufacturing prac-tices (GMPs).

When microbiological problems are encountered in cheesemaking, many of the issues relate to lack of process control, or good manufac-turing practices that are lacking in many artisan cheesemaking estab-lishments, the Food Standards Scotland report noted.

European Union Regulation (EC) 178/2002 establishes the general principles of food safety and food law, aimed at prevent-ing the marketing of unsafe food and ensuring that systems exist to identify and respond to food safety problems.

Article 5 of Regulation (EC) No. 852/2004 requires food busi-ness operators (BFOs) to put in place, implement and maintain a permanent procedure based on hazard analysis and critical control point (HACCP) principles.

HACCP procedures are inter-nationally recognized as useful tools for FBOs to control hazards that may occur in food, the report noted.

“A HACCP-based approach to risk reduction is essential to bring Scottish cheeses made from unpasteurized milk to a level of safety equivalent to cheeses made from pasteurized milk,” the report stated.

Assuring the safety of cheese made from raw milk is influenced by four primary variables, accord-ing to the report: Use of high microbiological

quality raw milk with low hygiene indicator levels;

The rate and degree of acidi-fication achieved during cheese-making; The rate of pathogen inacti-

vation during cheesemaking and aging/affinage; and Prevention of recontamina-

tion from the processing environ-mental or during retail.

A number of factors influenc-ing the microbiological safety of cheese made from raw milk can be implemented in hazard analy-sis and critical control point plans, the report said.

These include establishing stringent microbiological criteria for raw milk intended for cheese-making, improving the microbio-logical quality of raw milk used for cheesemaking, monitoring trends during cheesemaking and achieving process control, training and education for cheese makers, proper handling of cheese at retail, prevention of post-process recon-tamination of cheese, addressing facility issues such as foot traffic and good manufacturing practices, proper decontamination of brushes used for brining and washing, and environmental control and moni-toring of pathogens in the chee-semaking facility, the new report stated.

The Specialist Cheesemakers’ Association of the United King-dom endorsed the Food Standards Scotland publication, calling it a “must read” for all those involved with specialist cheeses.

The report is available at www.foodstandards.gov.scot.

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CHEESE REPORTERPage 8 December 28, 2018

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CA Federal Order(Continued from p. 1)

billion pounds, while 97.5 million pounds of Grade A milk wasn’t pooled, figures from the CDFA show. California’s Grade B milk production in November 2017 totaled 89.4 million pounds.

Total pooled milk solids utili-zation in California in November 2017 was as follows: Class 1, 13.9 percent; Class 2, 5.9 percent; Class 3, 2 percent; Class 4a, 31.4 per-cent; and Class 4b, 46.8 percent.

In November 2018, pooled milk utilization and minimum class prices in California were as follows:

Class I: 467.1 million pounds, or 22.5 percent of the pooled milk; minimum Class I price was $17.62 per hundred.

Class II: 102.8 million pounds, or 4.9 percent of the pooled milk; the minimum Class II price was $15.63 per hundred.

Class III: 1.325 billion pounds, or 63.7 percent of the pooled milk; the minimum Class III price was $14.44 per hundred..

Class IV: 184.6 million pounds, or 8.9 percent of the pooled milk; the minimum Class IV price was $15.06 per hundred.

For all of 2017, California’s pooled milk utilization was as fol-lows, according to the CDFA:

Class 4a, 32.5 percent; Class 4b, 46.2 percent; Class 1, 12.8 percent; Class 2, 5.5 percent; and Class 3, 3.0 percent.

Thus, it appears that the vast majority of milk depooled in Cali-fornia in November was Class IV milk.

Pooling Restrictions WaivedThe decision to pool manufactur-ing milk (Classes II, III and IV) will be made by handlers and is depen-dent upon overall class price levels, the alignment of class prices, and the overall utilization by class of all milk on the order, the November 2018 California market adminis-trator’s bulletin explained.

During the first months of the California federal order pool, there may be some juggling of pool milk volumes as handlers adjust to fed-eral order prices and provisions and make pooling decisions that make the most economic sense for their organization, the bulletin noted.

If a handler elects to remove milk from the order, or depool a volume of producer milk, there are restrictions within the order regulations that place limitations on the volume of milk that can be repooled, the bulletin pointed out.

During the first three months of the California federal order, pool-ing restrictions have been waived

in order to easily allow all handlers who wish to be part of the federal order pool to do so.

In its “Regulatory Economic Impact Analysis” of the final deci-sion to establish a California federal order, AMS noted that the pooling provisions in the California fed-eral order are similar to those in the Upper Midwest order which, like California, has a high share of manufacturing milk (in 2017, Class I utilization on the Upper Midwest order was 10 percent).

The AMS milk pooling analysis found that manufacturers in the Upper Midwest chose to pool less Class II, III, or IV milk when the respective price was high relative to the uniform price. That is, han-dlers collectively elected to pool less milk when their pool draw was lower and they elected to pool more milk when their pool draw was higher.

On average, the AMS analy-sis found that approximately 41.6 percent of the manufacturing milk pooled on the CSO would not be pooled because of class-to-uniform price relationships. On a classified-use basis, the analysis estimated 32.7 percent of Class II, 42.4 per-cent of Class III, and 41.8 percent of Class IV milk pooled under the CSO would not be pooled under the federal order because of price.

Nov. Summary For All OrdersDuring November, 13.358 billion pounds of milk were received from federally pooled milk producers, according to the “Market Summary and Utilization Report, November 2018,” which was released earlier this month by AMS.

That volume of milk was 39.8 percent higher than the November 2017 volume.

The new California federal order ranked third among the 11 federal

orders in terms of receipts of pro-ducer milk in November, accord-ing to AMS. A total of 2.699 billion pounds of milk was pooled on the Upper Midwest order, 2.12 billion was pooled on the North-east order, and 2.08 billion pounds was pooled on the California order.

Regulated handlers pooled 4.0 billion pounds of producer milk as Class I products in November, up 12.9 percent from November 2017. That included 467.1 million pounds of milk pooled in Class I in the California federal order.

In terms of the volume of milk pooled in Class I in November, California ranked third among the 11 federal orders, trailing the Northeast order (755.4 million pounds of milk pooled in Class I), and the Mideast (579.5 million pounds of milk pooled in Class I).

In terms of producer milk in all milk classes, California’s ranking in November was as follows:

Class I: California’s utilization percentage of 22 percent was lower than all other orders except the Upper Midwest (9 percent) and Pacific Northwest (21) orders.

Class II: California’s utilization percentage of 5 percent was lower than all other orders except the Upper Midwest order (2 percent).

Class III: California’s utiliza-tion percentage of 64 percent was higher than all other orders except the Upper Midwest order (87).

Class IV: California’s utilization percentage of 9 percent was lower than the Northeast (14 percent), Central (11 percent), Mideast (13 percent), Pacific Northwest (32); and Arizona (37 percent) orders.

California’s uniform price of $15.44 per hundredweight was higher than the uniform price in the Upper Midwest ($14.74), Cen-tral ($15.22), and Pacific North-west ($15.22) orders.

12.8%

32.5%46.2%

Class 1/I Class 2 & 3/II Class 4a/IV Class 4b/III

4.9%

total 2017

Utilization of California Pooled MilkCalifornia State Order for total 2017 vs. California Federal Order for Nov. 2018

22.5%

8.9%63.7%

8.5%

Nov. 2018

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CHEESE REPORTERDecember 28, 2018 Page 9

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sitions-mergers-other. Contact Jim

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[email protected]

6. Help Wanted

The “Industry’s” Market Place for Products, Services, Equipment and Supplies, Real Estate and Employee Recruitment

7. Positions Wanted

8. Promotion & Placement

PROMOTE YOURSELF - By contact-ing Tom Sloan & Associates. Job enhancement thru results oriented professionals. We place cheese mak-ers, production, technical, maintenance, engineering and sales management people. Contact Dairy Specialist David Sloan, Tom Sloan or Terri Sherman. TOM SLOAN & ASSOCIATES, INC., PO Box 50, Watertown, WI 53094. Phone: (920) 261-8890 or FAX: (920) 261-6357; or by email: [email protected].

10. Cheese & Dairy Products

KEYS MANUFACTURING:Dehydrators of scrap cheese for the animal feed industry. Contact us for your scrap at (217) 465-4001 or email [email protected].

11. Warehousing

FREEZER SPACE available at our warehouse facilities in Wisconsin and Utah. We have expanded and have freezer and cooler space available. Please contact Bob at MARTIN WAREHOUSING at 608-435-2029 or email at [email protected].

16. Testing Analytical

Western Repack

Reclamation Services• Cheese Salvage/Repacking• 640# Block Cutting

Handling cheese both as a service and on purchase.

Bring us your special projects

Western Repack, LLC(801) 388-4861

We Purchase Fines and Downgraded Cheese

Manways & Inspection Ports

Sanitary, Heavy-Duty Prevents CIP Solution,

Air and Powder Leakage Evaporator Dryer Technologies, Inc. www.evapdryertech.com

Hiring for multiple positions! - Malone, WI

Come join our team! LaClare Family Creamery, a rapidly growing leader in artisanal goat milk dairy cheeses and other products, is a family-operated business that has expanded to include a processing plant, retail shop and restaurant. As part of the Mosaic Meadows family of farms, it benefits from an experienced sales, marketing and service team as well as a coast-to-coast broker-and-distribution network.

Quality Assurance Supervisor

Overall responsibilities include the oversight of quality assurance compliance at LaClare Family Creamery ensuring that products meet company standards.

Preferred experience includes: Familiar with SQF, FSMA, IMS, State and Federal regulations; Working knowledge of Quality Assurance disciplines and interaction with plant personnel and procedures; Understand and develop strategic environmental monitoring program; Focus in Food Safety and Process Improvement/Operational efficiencies.

Other open positions include:

• Affineur• Operator – 2nd shift• Production Assistant – 2nd shift

If interested, please send resumes to: LaClare Family CreameryAttn: Human Resources N3569 Vanden Bosch Rd. Kaukauna, WI 54130Or apply online at: www.careersinfood.com or www.indeed.com

LaClare Farms Specialties, LLC will consider applicants for any position without regard to any applicant’s race, color, religion, creed, gender, national origin, age, disability, marital or veteran status, sexual orientation, or any other legally protected status.

shift

General Machinery CorporationGeneral Machinery Corporation

1820 Single DirectionCheese Cutter

Reduces wire cutable product into uniform portions for dicing, shredding,melting, or blending.

Call NOW at 1-888-243-6622Email: [email protected]

www.genmac.com

General Machinery CorporationCall NOW at 1-888-243-6622

Email: [email protected]

3010 TU-WaySimultaneously cuts either two 40-lb blocks

or up to four 20-pound Mozz loaves.

General Machinery Corporation

3090 Dual DirectionCheese Cutter

Designed to cut 40# blocks 7" x 11" x 14"Wire harps/platens easily removed and replaced

Two adjustable speed controlsOne or two person operation.

Call NOW at 1-888-243-6622Email: [email protected]

www.genmac.com

General Machinery Corporation

HYDRAUFLAKERReduces Frozen Blocks

Designed to automatically chunk frozen blocks of cheese and butter

for further processing.

Call NOW at 1-888-243-6622Email: [email protected]

www.genmac.com

Cheese Maker/Plant Manager Experienced cheesemaker with some management and sales experience to be lead cheesemaker/plant manager for a proposed new cheese plant in South Central Kansas. We will provide you an opportunity to showcase your cheese making ability, management capability and your input.

CHEESEMAKER/PLANT MANAGER EXPECTATIONS:n Ability to recognize and solve potential problems in production; know product safety procedures, regulatory compliance and have good communication skills. Be accurate in production record keeping.n Ability to teach cheese making procedures, sanitation and quality assurance to selected employees.n Ability to represent company and market products to prospective clients.”n Working knowledge of Microsoft Word, Excel and PowerPoint

n Salary dependent on experience with a health insurance plan and bonus package.

Send confidential résumé with cover letter to [email protected] or if you would like to visit about this opportunity email your contact information and I will contact you or phone 620-921-0128.

Page 10: Partial Government Shutdown Has Over 1 Billion Pounds Of ... 28, 2018.pdf · certain AMS programs are funded, a lapse in federal appropriations will have varying impacts on USDA’s

CHEESE REPORTERPage 10 December 28, 2018

If changing subscription, please include your old and new address below

Circle, copy and FAX to (608) 246-8431 for prompt response

CHEESE REPORTER SUBSCRIBER SERVICE

Name _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Title _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Company _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Address _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

City/St/Zip _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

E-Mail Phone _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

TYPE OF BUSINESS:___Cheese Manufacturer___Cheese Processor___Cheese Packager___Cheese Marketer(broker, distributor, retailer___Other processor (butter, cultured products)___Whey processor___Food processing/Foodservice___Supplier to dairy processor

JOB FUNCTION:___Company Management___Plant Management___Plant Personnel___Laboratory (QC, R&D, Tech)___Packaging___Purchasing___Warehouse/Distribution___Sales/Marketing

PLEASE SEND ME MORE INFORMATION ON:___Advertising ___Subscribing _____Subscripion Change ___Other__________________

DAIRY PRODUCT SALES

WEEK ENDINGStyle and Region Dec. 22 Dec. 15 Dec. 8 Nov. 28

40-Pound Block Cheddar Cheese Prices and Sales

Weighted Price Dollars/PoundUS 1.3937 1.3969• 1.4204 1.4454Sales Volume PoundsUS 11,680,210 12,013,844• 12,724,396• 12,286,600

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

Weighted Price Dollars/Pound US 1.3686 1.3800• 1.3912• 1.4095Adjusted to 38% Moisture US 1.3045 1.3122• 1.3241• 1.3443Sales Volume PoundsUS 12,235,188 12,273,519• 12,227,181• 13,050,630Weighted Moisture Content PercentUS 34.95 34.80• 34.86 34.99

Butter

Weighted Price Dollars/PoundUS 2.2523 2.2530• 2.2531• 2.2903Sales Volume PoundsUS 1,692,528 3,234,163• 2,549,181• 4,616,486•

Dry Whey Prices

Weighted Price Dollars/PoundsUS 0.4728 0.4671• 0.4647• 0.4595Sales VolumeUS 4,812,627 5,912,518• 6,575,806• 6,608,074

Nonfat Dry Milk

Average Price Dollars/PoundUS 0.9007 0.9050• 0.8950• 0.8837•Sales Volume PoundsUS 16,962,872 19,319,871• 17,780,736• 15,587,849•

Dec. 27, 2018—AMS’ National Dairy Prod-ucts Sales Report. Prices included are pro-vided each week by manufacturers. Prices collected are for the (wholesale) point of sale for natural, unaged Cheddar; boxes of but-ter meeting USDA standards; Extra Grade edible dry whey; and Extra Grade and USPH Grade A nonfortified NFDM. •Revised

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

‘16 13.31 13.49 12.74 12.68 13.09 13.77 14.84 14.65 14.25 13.66 13.76 14.97‘17 16.19 15.59 14.32 14.01 14.49 15.89 16.60 16.61 15.86 14.85 13.99 13.51‘18 13.13 12.87 13.04 13.48 14.57 14.91 14.14 14.63 14.81 15.01 15.06

HISTORICAL MILK PRICES - CLASS IV

Name _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Title _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Company _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Address _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

City/St/Zip _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

E-Mail Phone _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

New

Su

bsc

rib

er In

foO

ld S

ub

scri

ber

Info

600

625

650

675

700

725

750

775

800

825

2012 13 2014 15 2016 17 2018

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

100

125

150

175

2012 2013 2014 2015 2016 2017 2018

Butter StocksNov 30 of Select Years, million lbs

80

100

120

140

160

2012 2015 2018

Manufacturers’ Stocks ofLactoseEnd of Oct; Select Years; million lbs

30

40

50

60

70

80

90

100

2012 2015 2018

Manufacturers’ Stocks ofDry Whey - HumanEnd of Oct; Select Years, million lbs

$1.35

$1.45

$1.55

$1.65

$1.75

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

40-Pound Block Avg

CME vs AMS

DAIRY FUTURES PRICESSETTLING PRICE *Cash SettledDate Month Class III* Class IV* Dry Whey* NDM* Butter* Cheese*12-21 December 18 13.84 15.07 46.725 91.000 222.675 1.378112-24 December 18 13.83 15.07 46.750 91.000 222.675 1.379012-25 December 18 — — — — — —12-26 December 18 13.84 15.11 46.750 91.000 223.500 1.379012-27 December 18 13.84 15.11 46.750 91.000 223.350 1.3800

12-21 January 19 14.28 15.16 47.100 93.500 220.250 1.427012-24 January 19 14.17 15.16 47.100 93.050 220.975 1.414012-25 January 19 — — — — — —12-26 January 19 14.19 15.15 47.100 93.050 220.500 1.416012-27 January 19 14.23 15.12 47.250 92.750 221.500 1.4200

12-21 February 19 14.50 15.30 45.925 95.400 223.825 1.454012-24 February 19 14.35 15.30 45.325 94.675 221.800 1.443012-25 February 19 — — — — — —12-26 February 19 14.43 15.34 45.050 94.600 222.250 1.448012-27 February 19 14.45 15.26 45.250 94.575 224.150 1.4520

12-21 March 19 14.87 15.65 44.800 97.500 227.500 1.500012-24 March 19 14.84 15.62 43.850 96.500 224.775 1.499012-25 March 19 — — — — — —12-26 March 19 14.88 15.64 43.275 96.150 225.225 1.501012-27 March 19 14.92 15.56 43.675 96.150 227.475 1.5050

12-21 April 19 15.41 15.95 44.500 99.500 228.825 1.555012-24 April 19 15.31 15.96 43.425 98.100 228.750 1.555012-25 April 19 — — — — — —12-26 April 19 15.36 15.94 43.425 98.000 228.775 1.557012-27 April 19 15.39 15.94 43.125 98.000 230.000 1.5570

12-21 May 19 15.79 16.23 43.500 101.250 230.600 1.602012-24 May 19 15.70 16.20 42.875 101.125 230.050 1.598012-25 May 19 — — — — — —12-26 May 19 15.76 16.14 42.875 99.775 230.075 1.600012-27 May 19 15.77 16.14 42.875 99.700 231.175 1.6030

12-21 June 19 16.04 16.39 42.500 102.825 231.625 1.631012-24 June 19 15.98 16.40 41.500 101.925 231.550 1.632012-25 June 19 — — — — — —12-26 June 19 15.98 16.31 41.500 101.525 232.700 1.633012-27 June 19 16.00 16.31 41.500 101.525 232.700 1.6350

12-21 July 19 16.34 16.52 42.500 103.925 232.000 1.659012-24 July 19 16.30 16.52 42.300 103.175 232.600 1.660012-25 July 19 — — — — — —12-26 July 19 16.30 16.53 42.300 103.000 232.700 1.660012-27 July 19 16.33 16.53 42.300 103.000 232.250 1.6650

12-21 August 19 16.53 16.60 42.250 104.600 232.550 1.683012-24 August 19 16.49 16.60 42.250 104.075 232.300 1.686012-25 August 19 — — — — — —12-26 August 19 16.49 16.60 42.250 104.075 232.750 1.686012-27 August 19 16.52 16.60 42.250 104.450 233.250 1.6900

12-21 September 19 16.66 16.64 41.500 106.000 232.750 1.700012-24 September 19 16.64 16.65 41.500 105.225 233.000 1.698012-25 September 19 — — — — — —12-26 September 19 16.64 16.65 41.500 105.225 232.750 1.699012-27 September 19 16.69 16.65 41.500 105.225 232.750 1.7050

12-21 October 19 16.58 16.73 40.750 106.975 232.000 1.700012-24 October 19 16.56 16.73 40.750 106.300 232.000 1.700012-25 October 19 — — — — — —12-26 October 19 16.56 16.73 40.750 106.000 232.000 1.701012-27 October 19 16.55 16.73 40.750 106.000 232.000 1.7050

Interest - Dec. 27 28,975 4,820 3,893 7,335 7,602 26,122

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CHEESE REPORTERDecember 28, 2018 Page 11

DAIRY PRODUCT MARKETSAS REPORTED BY THE US DEPARTMENT OF AGRICULTURE

WHOLESALE CHEESE MARKETS

WHOLESALE BUTTER MARKETS - DECEMBER 26NATIONAL: Butter manufacturing is transitioning from print to bulk. Print but-ter processing is slowing as holiday retail orders decrease. In general, butter invento-ries are steady to building into cold storage.

CENTRAL: Cream supplies destined for butter churns have been expectedly eas-ier to locate during the holiday week. Butter makers report cream is nearing capacity at their respective plants. Some butter churn-ers report being booked up early into 2019. They are hopeful that cream availability lev-els will remain similar into the first quarter of next year. Sales reports have remained positive for butter makers, and they are currently producing to get ahead of spring holiday demand pushes. Butter markets remain solid coming into 2019. Some con-tacts expect a similar market pattern in 2019 which butter has maintained throughout

2018, if only slightly lower on the average with increasing export competition.

NORTHEAST: Lots of cream drives active butter production, as manufacturers focus on 2019 stock buildup. Spot demand has weakened to typical yearend post-holi-day levels. Buyers/sellers continue to make inroads with Q1 contract negotiations. The butter market has a depressed undertone.

WEST: Some western butter makers say there is plenty of cream available. Intakes are a little heavier amidst the holidays, but the volumes are not overwhelming. Butter churns are active, aside from several days off for the holidays. Although now slower, as home bakers go on their resolution diets, processors note an interest from buyers to restock their print supplies and begin build-ing coverage for their Q1 bulk butter needs.

NATIONAL - DEC. 21: Milk availability, for Class III producers, approaching the end of 2018 is higher, but not to the expectations of some cheese plant managers. Spot milk prices slightly decreased. They were reported from $3 under to $2 over Class. Nationally, cheese production has increased as a number of producers report running during the holidays. Cheese inventories are mixed. Some producers report running, at least partial shifts, on the upcoming holidays. Cheese inventories are generally long, but some producers reported scaling back production in the fall, before expected seasonal lulls in demand. Mozzarella and other pizza cheese producers continue to report steady to strong sales, but producers of other styles are slower as holiday ordering has culminated. Cheese markets have had a steady week.

NORTHEAST- DEC. 26: Cheese production schedules in the Northeast have increased currently, as bottling orders from educational institutions are decreased. Some operations are running at full capacity. Cheese supplies are steady to growing at this time. Customers’ retail demands are fairly unchanged. Moreover, grocers continue to promote holiday cheese advertisements. Spot market trading activity is slower as market participants’ cheese orders are fulfilled through the end of 2018.

Wholesale prices, delivered, dollars per/lb:Cheddar 40-lb blocks: $1.8625 - $2.1475 Process 5-lb sliced: $1.4475 - $1.9275Muenster: $1.8475 - $2.1975 Swiss Cuts 10-14 lbs: $3.2375 - $3.5600

MIDWEST AREA - DEC. 26: With the exception of some minor maintenance setbacks, cheese production has been somewhat busy during the holiday week. Cheese plant man-agers report holiday-priced milk is flowing in, from flat to $4 under Class. Cheese demand has met expectations in general, within the Midwest. Some plant managers report current stocks are minimal, while others relay shifting production away from slower selling varieties, including curds. Some midwestern cheese contacts are concerned about the number of dairy farms closing after feed rations dry up, particularly more remote and/or rural cheese operations with milk supplies coming from smaller, nearby dairy farms. Cheese markets have regained some momentum they lost during the fall. However, current market tones are less-than-bullish as stocks outweigh demand, nationally.

Wholesale prices delivered, dollars per/lb: Brick 5# Loaf: $1.7700 - $2.1950 Cheddar 40# Block: $1.4975 - $1.8925Monterey Jack 10#: $1.7450 - $1.9500 Mozzarella 5-6#: $1.5700 - $2.5100 Muenster 5# $1.7700 - $2.1950 Process 5# Loaf: $1.4025 - $1.7625Grade A Swiss 6-9#: $2.7525 - $2.8700 Blue 5# Loaf: $2.0375 - $3.1075 WEST - DEC. 26: There is a slightly higher interest in buying cheese. Nevertheless, domestic sales above contracted volumes are hard to materialize as buyers seem to have adequate supplies going into the new year. Therefore, they are not actively purchasing cheese. Requests from the international market are good. Some contacts suggest that cheese inventories have not been decreasing as fast as in previous years. In addition, abun-dant milk supplies are leading to strong cheese production. With the past holiday, more milk moved to the vats, and more will continue to move to Class III processing plants for balanc-ing purpose at least up to the end of the upcoming holiday. Nonetheless, handlers are not concerned as cheese facilities have enough capacities to handle all their milk.

Wholesale prices delivered, dollars per/lb: Cheddar 10# Cuts: $1.7100 - $1.9300Cheddar 40# Block: $1.5300 - $1.9725 Monterey Jack 10#: $1.7200 - $1.8800Process 5# Loaf: $1.3900 - $1.6450 Swiss 6-9# Cuts: $2.8350 - $3.2650 FOREIGN -TYPE CHEESE - DEC. 26: US In the European Union and Germany, extensive quantities of cheese were delivered a few days before the past holiday. Therefore, current stocks of cheese are at very low levels and insufficient to satisfy any unplanned requests. It is expected that sales will remain lively in January since customers have actively started to book their orders for that month. Current cheese prices continue to be lower. Cheese production is steady, in line with seasonal expectations. A slight boost in prices has been noted for January deliveries. In additional, the present dynamic export sales are likely to further stimulate the increase in prices.

Selling prices, delivered, dollars per/lb: Imported DomesticBlue: $2.6400 - 5.2300 $1.9150 - 3.4025Gorgonzola: $3.6900 - 5.7400 $2.4225 - 3.1400Parmesan (Italy): 0 $3.3050 - 5.3950Romano (Cows Milk): 0 $3.1050 - 5.2550Sardo Romano (Argentine): $2.8500 - 4.7800 0Reggianito (Argentine): $3.2900 - 4.7800 0Jarlsberg (Brand): $2.9500 - 6.4500 0Swiss Cuts Switzerland: 0 $3.2750 - 3.5975Swiss Cuts Finnish: $2.6700- 2.9300 0

DRY DAIRY PRODUCTS - DECEMBER 27NDM - CENTRAL: The low/medium heat NDM markets were seasonally slow, as cur-rent prices are unchanged. As a number of contacts are taking time off, the markets were expectedly quiet. Contacts have begun to shift their focus on Q1 and on 2019 in general. Late in 2018, producers continue to report tightening supplies, and buyers are taking on loads for over $.90 per pound in the Midwest. Overall NDM markets are bull-ish coming into a new trading quarter.

NDM - WEST: F.O.B. prices for west-ern low/medium heat NDM remain strong and even on the range and the mostly price series. The market seems to be maintaining a bullish tone. International demand is sta-ble, whereas domestic spot trading activities are light due to the holidays. Stocks of low/medium heat NDM continue to be in good equilibrium with orders, but have started to somewhat increase. This is mainly due to active regional low/medium heat NDM pro-duction as plants work on balancing milk hold-overs from the past holiday and pre-pare for the next one. Pricing levels for high heat NDM are flat. Drying schedules for high heat NDM are limited by the urgency to pro-cess low/medium heat NDM.

NDM - EAST: Low/medium heat NDM prices in the region are steady, as spot sales are trading within the price range and mostly series this week. Moreover, the spot mar-ket is generally quiet as market participants’ needs are met through the end of the year, and many industry contacts have time off during the holidays. Low/medium heat NDM production has increased currently as milk supplies are readily available. Manufactur-ers’ inventories are balanced to short. The market undertone is stable. High heat NDM prices are unchanged due to a quiet spot market trading week. Some operations are taking time to dry more high heat.

LACTOSE: Many buyers and sellers worked to get shipments out the door prior to the end of the year. Much of the Q1 2019 contracting is in place, but there may be a few remaining deals to complete in the next few weeks. Lactose inventories are gener-ally tight. However, industry contacts report a lot of off-grade lactose has been trading the last few weeks as processors seek to clear out some stocks. Production is steady, as is demand. Industry contacts are wonder-ing what the new year will bring and whether lingering trade issues can be rectified.

WEEKLY COLD STORAGE HOLDINGSSELECTED STORAGE CENTERS IN 1,000 POUNDS - INCLUDING GOVERNMENT

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

12/24/18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,038 88,90412/01/18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,314 89,456Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -4,276 -552Percent Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -17 -1

ORGANIC DAIRY - RETAIL OVERVIEW

The total number of conventional dairy ad numbers decreased 18 percent from last week, while organic dairy ads increased 91 percent. Ad numbers for conventional ice cream in 48- to 64-ounce containers were higher than any other dairy product/package size. Conventional cream cheese ad numbers decreased 35 percent. The average advertised price is $2.04, 37 cents higher than last week. Organic cream cheese ad numbers increased 129 percent. The average advertised price is $2.38, 12 cents lower than last week.

Conventional cheese ad numbers decreased 16 percent, but no ads were reported for organic cheese this week. The average advertised price for conventional 8-ounce block cheese is $1.92, while conventional 8-ounce shred cheese price is $2.14.

The national average advertised conventional milk price for half-gallons is $1.18, while organic half-gallon milk averaged $3.88, an organic price premium of $2.70. Conventional milk ad numbers decreased 21 percent, but organic milk ad numbers increased 167 percent. Dur-ing this week, total ads for conventional and organic milk half-gallons increased 89 and 218 percent, respectively.

National Weighted Retail Avg Price: Butter 1 lb: $5.39Cottage Cheese 16 oz block: $2.79Cream Cheese 8 oz: $2.38Sour Cream 16 oz: $2.19Yogurt 4-6 oz: $1.29

Yogurt 32 oz: NAMilk ½ gallon: $3.88Milk gallon: $4.99Milk UHT 8 oz: NAEgg Nog quart: NASour Cream 16 oz: NA

RETAIL PRICES - CONVENTIONAL DAIRY - DECEMBER 28Commodity

Butter 1#

Cheese 8 oz block

Cheese 1# block

Cheese 2# block

Cheese 8 oz shred

Cheese 1# shred

Cottage Cheese

Cream Cheese

Egg Nog quart

Flavored Milk ½ gallon

Ice Cream 48-64 oz

Milk ½ gallon

Milk gallon

Sour Cream 16 oz

Yogurt (Greek) 4-6 oz

Yogurt (Greek) 32 oz

Yogurt 4-6 oz

Yogurt 32 oz

US NE SE MID SC SW NW

3.31 3.38 NA 2.69 3.72 2.76 3.74

1.92 2.14 1.75 2.31 1.45 2.50 2.50

3.81 3.45 3.54 3.99 4.75 4.99 3.99

5.53 NA 4.99 4.99 4.99 4.99 NA

2.14 2.01 2.12 2.15 1.74 2.09 3.11

3.77 3.78 3.54 3.99 3.99 NA 3.99

1.93 1.82 2.00 NA 2.26 1.49 1.99

2.04 1.71 2.52 1.46 1.50 2.09 NA

3.23 3.23 NA NA NA NA NA

3.87 2.00 2.50 2.00 2.29 2.85 4.14

3.02 2.89 2.98 3.09 3.45 2.85 3.99

1.18 .99 .79 .77 1.89 NA NA

2.43 3.99 NA 1.99 1.77 2.09 NA

1.68 1.64 1.91 1.19 1.64 1.43 1.85

.99 1.00 .94 1.00 .98 .99 1.11

4.66 4.90 NA NA NA 4.99 3.50

.52 .52 .49 .66 .50 .49 .60

2.40 2.35 2.49 2.50 2.29 NA 2.50

US: National Northeast (NE): CT, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VT;Southeast (SE): AL, FL, GA, MD, NC, SC, TN, VA, WV; Midwest (MID): IA, IL, IN, KY, MI, MN, ND, NE, OH, SD, WI; South Central (SC): AK, CO, KS, LA, MO, NM, OK, TX; Southwest (SW): AZ, CA, NV, UT; Northwest (NW): ID, MT, OR, WA, WY

NATIONAL - CONENTIONAL DAIRY PRODUCTS

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CHEESE REPORTERPage 12 December 28, 2018

CME CASH PRICES - DECEMBER 24 - 28, 2018Visit www.cheesereporter.com for daily prices

500-LB 40-LB AA GRADE A DRY CHEDDAR CHEDDAR BUTTER NFDM WHEY

MONDAY $1.2950 $1.3500 $2.1900 $0.9225 $0.4900December 24 (NC) (-4) (-1½) (-1¾) (NC)

TUESDAY No No No No NoDecember 25 Trading Trading Trading Trading Trading

WEDNESDAY $1.2825 $1.3375 $2.2200 $0.9250 $0.4900December 26 (-1¼) (-1¼) (+3) (+¼) (NC)

THURSDAY $1.2850 $1.3700 $2.2200 $0.9400 $0.4900December 27 (+¼) (+3¼) (NC) (+1½) (NC)

FRIDAY $1.2900 $1.4300 $2.2175 $0.9375 $0.4800December 28 (+½) (+6) (-¼) (-¼) (-1)

Week’s AVG $1.28813 $1.37188 $2.21188 $0.93125 $0.48750Change (-0.02487) (-0.03412) (+0.01788) (-0.00675) (+0.0125)

Last Week’s $1.3130 $1.4060 $2.1940 $0.9380 $0.4750AVG

2017 AVG $1.43563 $1.51563 $2.19688 $0.66438 NASame Week

MARKET OPINION - CHEESE REPORTER

WHEY MARKETS - DECEMBER 24 - 28, 2018

Cheese Comment: There were no blocks sold on Monday; the price declined on an uncovered offer of 1 car at $1.3500. Two cars of blocks were sold Wednesday, the last at $1.3375, which set the price. Two cars of blocks were sold Thursday, 1 each at $1.3500 and $1.3550; an unfilled bid for 1 car at $1.3700 then set the price. One car of blocks was sold Friday at $1.4200; an unfilled bid for 1 car at $1.4300 then set the price. The barrel price declined Wednesday on the sale of 1 car at $1.2825, increased Thursday on the sales of 8 cars at $1.2850, and rose Friday on a sale at $1.2900. There were 18 truckloads of barrels traded this week while there was five truckloads of blocks traded at the CME this week.

Butter Comment: The price declined Monday on a sale of 1 car at $2.1900, increased Wednesday on an unfilled bid for 1 car at $2.2200, then fell Friday on an uncovered offer of 1 car at $2.2175.

NDM Comment: The price fell Monday on an unfilled bid for 1 car at 92.25 cents (following a sale at 92.00 cents), increased Wednesday on the sale of 1 car at 92.5 cents, rose Thursday on an unfilled bid at 94.0 cents, then fell Friday on a sale at 93.75 cents. There were three truckloads of Nonfat Dry Milk traded this week at the CME.

Dry Whey Comment: The price declined Friday on an uncovered offer at 48.0 cents. There were no truckloads of Dry Whey traded at the CME this week.

RELEASE DATE - DECEMBER 27, 2018

Animal Feed Whey—Central: Milk Replacer: .3000 (NC) – .3550 (NC)

Buttermilk Powder: Central & East: .9200 (NC) – .9800 (NC) West: .8450 (NC) – .9600 (+1) Mostly: .8700 (NC) – .9300 (NC)

Casein: Rennet: 2.2875 (NC) – 2.6900 (NC) Acid: $3.0100 (NC) - $3.1400 (NC)

Dry Whey—Central (Edible): Nonhygroscopic: .3800 (NC) – .5100 (NC) Mostly: .4400 (NC) – .4700 (NC)

Dry Whey–West (Edible): Nonhygroscopic: .3775 (NC) – .5125 (+¼) Mostly: .4100 (NC) – .4800 (NC)

Dry Whey—NorthEast: .4675 (+¼) – .4975 (NC)

Lactose—Central and West: Edible: .2900 (NC) – .4500 (NC) Mostly: .3200 (NC) – .4000 (NC)

Nonfat Dry Milk —Central & East: Low/Medium Heat: .8700 (NC) – .9500 (NC) Mostly: .9100 (NC) – .9400 (NC) High Heat: 1.0100 (NC) – 1.0400 (NC)

Nonfat Dry Milk —Western: Low/Medium Heat: .8675 (NC) – .9900 (NC) Mostly: .9000 (NC) – .9500 (NC)

High Heat: 1.0000 (NC) – 1.0975 (NC)

Whey Protein Concentrate—Central and West: Edible 34% Protein: .8075 (NC) – 1.0450 (NC) Mostly: .8375 (NC) – .9325 (NC)

Whole Milk—National: 1.5000 (NC) – 1.6000 (NC)

Visit www.cheesereporter.com for dairy and historical cheese, butter, and whey prices

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Shutdown(Continued from p. 1)

USDA’s Food and Nutrition Ser-vice (FNS) Food Distribution Division staff will not be able to work due to the lapse in funding. However, AMS said it remains in contact with essential FNS staff as well as state contacts, should any delivery issues arise during this time.

For international food assistance programs, employees at USDA’s Foreign Agricultural Service, the US Agency for International Development, and AMS’ Interna-tional Commodity Procurement Division will not be able to work due to the lapse in funding. How-ever, two employees will be on call for emergency issues with vessel loadings or foreign discharge sur-veys.

Other AMS commodity pro-curement and other activities are impacted as follows: For previously awarded con-

tracts that have already been funded, AMS expects suppliers and contractors to continue to produce and deliver as required under cur-rent contracts for both domestic and international food assistance programs. USDA inspection and fee-

for-service (grading and certifica-tion) services are uninterrupted. The Web-Based Supply

Chain Management (WBSCM) system is operational. Some path-

ways to the log-in site may be non-functioning due to agency website shutdowns, including AMS and FNS. AMS will review and approve

invoices submitted via WBSCM according to normal procedure. Contract payments may not

be made until the office that issues payments has reopened. This may lead to a few payment delays should the federal government shutdown be prolonged. According to the terms of the Prompt Payment Act, USDA will pay interest on those invoices affected.

Among the AMS programs that are 100 percent funded with annu-ally appropriated funds and will not be continued during a government shutdown: the National Organic Program.

Meanwhile, during the shut-down period, FDA will be continu-ing vital activities, to the extent permitted by law, that are criti-cal to ensuring public health and safety. The mission critical, pub-lic health activities that will con-tinue include, among other things: maintaining core functions to han-dle and respond to emergencies, such as monitoring for and quickly responding to outbreaks related to foodborne illness, supporting high-risk food recalls when products endanger consumers, pursuing civil investigations when public health is belieived to be imminently at risk, and screening the food prod-ucts that are imported to the US.