W o r l d ' s DairyI t h W S l y CHEESE REPORTER 1, 2017.pdf · Australian Inquiry Finds Bargaining Power Imbalances Between Farmers, Processors S e r v i n g t h e W o r l d ' s

Australian Inquiry Finds Bargaining Power Imbalances Between Farmers, Processors

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CHEESE REPORTER Vol. 142, No. 24 • Friday, December 1, 2017 • Madison, Wisconsin

USDA Interim Final Rule Reinstates Lowfat Flavored Milk In Schools

tent with the dietary specifications for these programs.

For consistency across child nutrition programs, this interim final rule allows flavored, lowfat milk in the SMP and CACFP for participants six years of age and older, in school year 2018-2019. This flexibility is intended to encourage children’s consumption of fluid milk in the child nutrition programs and to ease administra-tive burden for program operators participating in multiple child nutrition programs.

This flexibility is consistent with the flexibility regarding flavored, lowfat milk mandated by Congress for the 2017-18 school year.

FNS said this rule addresses concerns raised by child nutri-tion program operators and indus-try partners about declining daily milk consumption among program participants. Declining milk con-sumption is a specific concern for children and adolescents because milk is a key source of calcium and vitamin D. Recent Centers for Disease Control and Prevention (CDC) survey data show that

• See Milk In Schools, p. 9

ACCC Interim Report Says Mandatory Code Of Conduct Should Be Considered To Improve Milk Contracting PracticesCanberra, Australia—The “dominant picture” that has emerged from a year-long Austra-lian Competition and Consumer Commission (ACCC) inquiry into dairy industry practices is one of “clear imbalances in bar-gaining power at each level of the dairy supply chain,” the ACCC said in an interim report released this week.

“Imbalances in bargaining power between processors and farmers result in practices that reduce competition for raw milk and transfer disproportionate levels of risk onto farmers,” the

report said. “These include com-plex and poorly timed pricing information, and contract terms which deter switching. These fea-tures make it difficult for farm-ers to know whether it is in their interests to switch to a rival com-petitive offer, and also to imple-ment a decision to switch.”

Late-season changes to the farmgate prices paid by Austra-lia’s two largest dairy processors in April 2016 caused “substan-tial detriment” to the Australian dairy industry and were the cata-lyst for this inquiry, the ACCC’s report explained.

These “step-downs,” enabled by contract terms, caused “severe and unforeseen reductions” in the incomes of more than 2,000 dairy farmers and the productivity of

• See Bargaining Power, p. 8

Washington—USDA’s Food and Nutrition Service (FNS) this week published an interim final rule that extends through school year 2018-19 three menu planning flexibili-ties currently available to many child nutrition program operators, including providing operators the option to offer flavored, lowfat (1 percent) milk in the child nutri-tion programs.

Also, the interim final rule retains Sodium Target 1 in the National School Lunch Program (NSLP) and the School Breakfast Program (SBP); and extends the option to allow individual school food authorities to include grains that are not whole grain-rich in the weekly menu offered under the NSLP and the SBP.

FNS said the interim final rule addresses “significant challenges” faced by local operators regarding milk, whole grains and sodium requirements and their impact on food development and reformula-tion, menu planning, and school foodservice procurement and con-tract decisions.

The interim final rule was applauded by the International

Dairy Foods Association (IDFA) and the National Milk Producers Federation (NMPF).

The 2015–2020 Dietary Guide-lines for Americans recommend consumption of fat-free (skim) and lowfat (1 percent fat) dairy products as an important source of beneficial nutrients. The current regulatory provisions on fluid milk for the affected child nutrition pro-grams (NSLP, SBP, Special Milk Program for Children and and Child and Adult Care Food Pro-gram) require program operators to offer fat-free or lowfat milk and restrict the use of flavored milk to fat-free milk.

This interim final rule will allow NSLP, SBP, SMP, and CACFP operators the option to serve fla-vored, lowfat milk, including as a competitive beverage for sale in schools, in school year 2018-19. Under this rule, NSLP and SBP operators that choose to exercise this option are not required to demonstrate a reduction in student milk consumption or an increase in milk waste, but are expected to incorporate this option into the weekly menu in a manner consis-

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USDA Reduces Fiscal Year 2018 Dairy Export Forecast; Cheese Import Forecast Also ReducedWashington—The US Depart-ment of Agriculture (USDA), in its quarterly Outlook for US Agricultural Trade report released Thursday, reduced its fiscal year 2018 dairy export forecast and also lowered its fiscal 2018 cheese import forecast.

The dairy export forecast for fiscal 2018, which runs from Oct. 1, 2017, to Sept. 30, 2018, was reduced by $100 million from the August forecast, to $5.6 billion, as global prices weaken and global competition intensifies.

In fiscal year 2017, US dairy exports totaled $5.324 billion, up 17.4 percent, or $788 million, from fiscal 2016. Dairy exports had been valued at $5.557 billion in

• See Trade Forecasts, p. 6

China Unilaterally Reduces Cheese Tariffs; USDEC Says Move Will Help US ExportersArlington, VA—China is unilat-erally reducing its cheese tariffs from 12 percent to 8 percent effec-tive today, a move that the US Dairy Export Council (USDEC) said will immediately boost US export competitiveness in China and help US suppliers take a larger role in meeting China’s booming cheese demand.

The tariff reduction is part of a broader package of tariff cuts on food and consumer goods China announced last week to bolster consumer choice, USDEC said. But cheese was included among those products only because of three years of bridge-building efforts led by USDEC.

USDEC’s China Dairy Tariff Initiative, which began in early 2014, focused on working with Chinese authorities to analyze the mutual benefits that would flow from China unilaterally lowering its tariffs on certain dairy products.

Over the last decade, China’s cheese imports soared more than seven-fold, to almost 100,000 metric tons (221 million pounds). Already a top-10 cheese buyer, China is on pace to become the world’s largest cheese importer in the coming years. Japan and Rus-sia are currently the world’s larg-est cheese importers, according to recent figures from USDA’s For-eign Agricultural Service (FAS).

At the same time, US suppliers have been losing market share, in part due to unfavorable tariff rates compared with competitors,

• See China Cuts Tariffs, p. 6

CHEESE REPORTERPage 2 December 1, 2017

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Sugar Creek, OH 44681

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Middleton, WI 53562

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unless Wisconsin can put together a couple more years like 2015 — when production was up 4.4 percent, or about 1.2 billion pounds, from 2014 — it will take years before Wisconsin overtakes California in milk production.

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EDITORIAL COMMENT

Can Wisconsin Overtake California In Milk Production?In October, California’s milk pro-duction fell by 1.5 percent com-pared to October 2016, while Wisconsin’s output increased by 2.3 percent. This continues a recent pattern in the two states that have lead the US in milk production for many years, and prompts a couple of interesting questions.

First, is it possible that Wiscon-sin could catch California in milk production? And second, if it can, when might that occur?

A bit of background is helpful here. California first topped Wis-consin in total milk production back in 1993. California’s milk production that year totaled 22.9 billion pounds, while Wisconsin’s output totaled 22.8 billion pounds.

Back in 1993, the two leading milk-producing states were head-ing in opposite directions. At 22.9 billion pounds, California’s milk production had more than doubled since 1975, and had set new record highs every year starting in 1979. Meanwhile, Wisconsin’s milk pro-duction had reached a record high of 25.0 billion pounds in 1988 and then dropped by more than 2 bil-lion pounds by 1993.

Over the next 15 years, not much changed in either state. California’s milk production con-tinued to set new records every year, reaching 41.2 billion pounds in 2008, or more than double the state’s output back in 1989.

Wisconsin’s milk production during the 1993-2008 period could perhaps best be described as lethar-gic, ranging from under 22.1 billion pounds in both 2002 and 2004 to 24.5 billion pounds in 2008, which was still short of the 1988 record by half a billion pounds.

Then things started to change a little bit. California’s milk pro-duction actually declined in 2009, and not just by a little but by a lot: the state’s output of 39.5 billion pounds was down an eye-opening 4.1 percent, or about 1.7 billion pounds, from 2008.

That was the first decline in California’s milk production since way back in 1978, when Cali-

fornia’s milk production totaled about 11.9 billion pounds. In other words, during the three decades in which California’s milk produc-tion was setting new records every year, the state’s output grow by almost 30 billion pounds (29.3 bil-lion pounds, to be exact).

After dipping in 2009, Califor-nia’s milk production continued its growth, with the exception of 2013, and reached a record high of 42.3 billion pounds in 2014. And then it declined in both 2015 and in 2016, by a total of almost 2 bil-lion pounds.

Wisconsin, meanwhile, finally broke its 1988 milk production in 2009, reaching 25.2 billion pounds, and has set new milk pro-duction records every year since then. Last year, the state’s milk output reached a record 30.1 bil-lion pounds. To put that in a bit of historical, competitive context, California first topped 30 billion pounds back in 1999.

So is it possible that Wiscon-sin could regain its milk produc-tion crown? Certainly. Just looking at trends over the past couple of years, California’s milk output has dropped by almost 2 billion pounds while Wisconsin’s production has grown by more than 2 billion pounds. If these trends continue, obviously Wisconsin will catch and then pass California.

But trends seldom continue unabated. Yes, Wisconsin’s milk production has increased every year since 2002, but California’s production has posted four declines and four increases since reaching a then-record 41.2 billion pounds back in 2008.

Still, the recent trends are con-tinuing here in 2017. During the first three quarters of this year, Cal-ifornia’s milk production posted declines of 2.9 percent, 1.4 percent and 1.4 percent, while Wisconsin posted production increases of 0.2 percent in the first quarter and 1.1 percent in the third quarter. But, in a nice illustration of the “trends seldom continue unabated” obser-vation above, Wisconsin’s sec-

ond-quarter milk production was actually down 0.1 percent from a year earlier.

When the final 2017 milk pro-duction statistics are released, they will probably show that Califor-nia’s milk production dipped below 40 billion pounds for the first time since 2009, and that Wisconsin’s milk output set another record, at around 30.2 billion pounds (these figures simply assume that fourth-quarter milk production will match a year earlier in the two states).

That still leaves a milk produc-tion difference of around 9.7 bil-lion pounds between California and Wisconsin. Historically, that would be the narrowest gap in milk production between the two states since 2000, and it’s also a lot narrower than it was, say, back in 2008 (16.7 billion pounds).

But unless Wisconsin can put together a couple more years like 2015 — when production was up 4.4 percent, or about 1.2 billion pounds, from 2014 — it will take years before Wisconsin overtakes California in milk production.

There are a couple of other interesting numbers to keep in mind here. First, Wisconsin’s milk cow numbers have been pretty stable to down slightly for the past year or so, which doesn’t point to strong growth in milk production. California’s milk cow numbers, meanwhile, continue to decline, but the state still has almost half a million more milk cows than does Wisconsin.

Also, Wisconsin’s dairy cows are now more productive than are Cal-ifornia’s; output per cow in Wis-consin last year was 23,552 pounds, compared to 22,968 pounds in California. Back in 1993, when California first topped Wisconsin in milk production, output per cow was 19,425 pounds in California and 14,781 pounds in Wisconsin. Thus, it will be difficult for Wis-consin to catch California just by boosting output per cow.

Yes, Wisconsin can catch Cali-fornia in milk production, but it won’t happen anytime soon.

CHEESE REPORTERDecember 1, 2017 Page 3

For more information, circle #1 on the Reader Response Card on p. 14

Mercosur Nations Urged To Rebuff EU’s Efforts To Confiscate Common Food NamesWashington—The Mercosur nations must protect the interests of their local food producers and respect current international stan-dards by rebuffing European Union (EU) efforts to confiscate common food and beverage names, accord-ing to the Consortium for Com-mon Food Names (CCFN).

CCFN made its plea in letters sent this week to foreign affairs ministers in the four Mercosur countries: Argentina, Brazil, Uru-guay and Paraguay.

The fifth negotiating round between the EU and Mercosur since the resumption of formal talks in October 2016 was held last month in Brasilia, Brazil. Both sides confirmed their commitment to conclude an agreement before the end of the year.

According to a European Com-mission report on the latest negoti-ating round, the EU and Mercosur continued their work on textual provisions related to geographical indications (GIs), and exchanged information on the respective lists of GIs to be protected through the agreement.

In its letter to foreign affairs ministers, CCFN said it opposes any new restrictions, including GI registrations, on the use of a number of commonly used terms of importance to Mercosur’s trading partners and/or its domestic food industry, including Asiago, Brie, Edam, Fontina, Grana, Mozzarella, Pecorino, Romano, Camembert, Emmental, Gorgonzola, Gruyere, Feta, Gouda, Manchego, Parmesan and Provolone.

A number of these products possess an international standard established by Codex Alimenta-rius, of which all four Mercosur countries are members. Those products include Brie, Camembert, Edam, Emmental, Mozzarella and Provolone.

CCFN does not oppose “legiti-mate” GIs that will not negatively impact the use of common names. Among the terms that could be protected as GIs only if Merco-sur governments clarify that they are protected in full with protec-tion not extending to any of the common names identified earlier are Brie de Meaux, Camembert de Normandie, Edam Holland, Emmental de Savoie, Gouda Hol-land, Grana Padano, Mozzarella di Bufala Campana, Parmigiano Reg-giano, and Pecorino Romano.

The general rule of thumb for compound GIs (i.e., GIs comprised of multiple terms) in the vast majority of countries, including in the EU, appears to be to provide protection by default to the com-pound GIs in full but not to its individual elements, CCFN noted. This is clearly as outlined by EU Commission Regulation (EC) No.

1107/96 of June 12, 1996, on the registration of geographical indi-cation and designations of origin under the procedure laid down in Article 17 of Council Regulation (EEC) No. 2081/92, which notes that use of brie, camembert, edam, emmental, gouda, mozzarella, pecorino, and provolone is not restricted.

The EU has also subsequently clarified even further that com-pound GIs are typically intended to be interpreted in their entirety by assuring the US Congress, in a 2014 letter, that EU GIs did not restrict the use of the following terms: camembert, brie, cheddar, edam, emmental, gouda, mozza-rella, provolone, ricotta, bologna,chorizo, salami, and prosciutto.

CCFN also pointed out that precedent exists for how to handle in a reasonable and trade-com-pliant manner those single-term GIs that the EU “unjustly” seeks to use to restrict the use of com-mon names such as asiago, feta, fontina, gorgonzola, gruyere and manchego.

CCFN held up the good-faith model employed by the GI consor-tium representing Italian fontina producers: it sought and secured in the US a trademark for “Fontina Val D’Aosta.” This has allowed the GI holder to create a unique identifier for its product in the US market (despite the fact that in the EU its GI is for “fontina”) while still preserving the rights of common-name users of the term “fontina” in the US as well.

A similar model has been employed by the Parmigiano Reg-giano Consortium, which has

multiple marks registered in the US market and elsewhere around the world for “Parmigiano Reg-giano,” while spreadspread use of the common term “parmesan” is also permitted to continue in those markets, again despite the fact that in the EU the GI “inexplicably restricts” use of the term “parme-san,” CCFN noted.

“We cannot abide by new restrictions on trade” with the Mer-cosur region,” CCFN said. Restric-tions on the use of common names would “clearly” constitute de facto nontariff barriers to trade and as such be entirely incompatible with the existing WTO commitments of the Mercosur countries.

A decision to impose a blockade on common name products from the US, New Zealand, Ausgtralia and other Mercosur trading part-ners “will not be taken lightly,” the CCFN added.


J O H N U M H O E F E R

Executive DirectorWisconsin Cheese Makers Association

608-828-4550jumhoefer @wischeesemakers.org

New Genetics Offer Growth for U.S. Dairy Sheep Farms

WCMA PERSPECTIVES From our Archives

50 YEARS AGODec. 1, 1967: London—During the month since the epidemic of hoof and mouth disease broke out in the Oswestry area of Eng-land’s picturesque Westcountry, Britain’s livestock industry has moved to take strong measures to keep the contagious disease from spreading, even to sending children away from their farms. This is considered the greatest epidemic of its kind in history.

Washington—Needy persons receiving USDA-donated foods now get more kinds of staple, nutritious foods than ever before. With the addition of butter and cheese last summer, food com-modities valued at $7.09 per person are available to needy families.

25 YEARS AGODec. 4, 1992: Washington—Organizers of the Dump the National Dairy Board Cam-paign reported this week that they have tallied 15,000 signa-tures, 500 more than required, on petitions from 45 states call-ing on the US secretary of agri-culture to hold a referendum on the continuation of the national dairy promotion check-off.

Washington—In response to a report of a study in the Journal of the American Medical Asso-ciation on a 1989 Salmonella outbreak caused by contami-nated Mozzarella cheese from a single cheese plant, the NCI this week reassured consumers that cheese is safe. The JAMA report found that cheese and other similar foods may be more common sources of sporadic Sal-monella infections than previ-ously recognized.

10 YEARS AGONov. 30, 2007: Harrisburg, PA—The state of Pennsylva-nia is reconsidering a decision that would have prevented dairy marketers from using “absence labeling” to tell consumers what is not present in their milk.

Washington—The FDA is requesting comments and infor-mation that will help the agency conduct a risk assessment for Liste-ria monocytogenes in soft-ripened cheese. It is intended to ascertain the impact on public health from the reduction and/or prevention of Listeria growth during the manu-facturing and/or processing of soft-ripened cheese.

The future of the dairy sheep indus-try in the US lies in frozen straws of semen and hard-fought efforts to bring productive genetics to Amer-ican sheep farms from Lacaune stock in France and proven Assaf animals in Spain.

“We’ve had no activity for 20 years, and now all this. It’s a really exciting time for farms looking to improve their flocks,” Laurel Kieffer told WCMA. A long-time sheep farmer until last year, Kieffer is focused on marketing sheep milk cheeses and sits on the genetic improvement task force for the Dairy Sheep Association of North America or DSANA.

“All this” new activity, as Kief-fer notes, is simultaneous work by DSANA and by budding entre-preneur Ms. J & Company in Wisconsin to build new flocks of productive stock, provide semen for direct sale to existing flocks around the country, and begin an official system of sire and produc-tion records for rams and ewes on farms willing to participate.

All this for an industry that retired University of Wisconsin professor Dave Thomas estimates at 250-275 dairy sheep farms across the nation, most in Wisconsin, New York, Vermont and New Hampshire.

It’s this small size, not consumer interest, that holds back growth in the dairy sheep industry, accord-ing to Wisconsin cheese maker Bob Wills at Cedar Grove Cheese. “The market for sheep cheeses is growing, and there’s great prod-uct coming out of New York, New England, Wisconsin – but we can’t push sales because supply has been tight on the milk side.”

A pioneer in sheep farming and cheesemaking, Tom Clark, notes that the link between the future success of farms, and par-ticipation of cheese makers, is crucial. “Cheese makers have a vitally important role,” Clark told WCMA. “The price paid for sheep milk is lower than it should be, and cheese makers need to build incen-tives for components – fat and pro-tein – to allow farms to invest in new genetics.”

Clark, the founder of Old Cha-tham Sheepherding Company, spearheaded years of efforts through DSANA to gain USDA approval to bring Lacaune sheep semen into the US this year. Twenty-two farms around the nation ordered about 900 frozen semen straws –

one insemination per straw – from the French breed known for pro-ducing milk for Roquefort cheese.

Clark, 76, sold award-winning Old Chatham Sheepherding three years ago to Dave and Sally Gal-ton, but himself purchased some of the French Lacaune semen to inseminate 50 ewes this fall on the farm he retains to provide breeding and milking stock for active milk-ing farms. “If we can bring in high-quality genetics each year, we can gradually improve the productivity of the American flock.”

Building a robust database will allow

dairy sheep producers to benefit from outputs

...using genetics to improve their bottom line.

In the rolling hills of Green county, Wisconsin, a new dairy sheep farm, and new genetics ven-ture, is rising on the site of a vin-tage Wisconsin dairy farm. Ms. J & Company, led by Mariana Marques de Almeida, Jeff Wideman and Shirley Knox, has acquired frozen semen from the Assaf breed now dominant in Spain.

“We look at this venture as a way to create new opportunities for today’s farms, and young farmers entering the industry,” Wideman, a Wisconsin Master Cheesemaker, told WCMA. “And we’re starting conversations with cheese makers interested in a new sheep milk sup-ply.”

The venture is taking shape this winter as a new, 1,000-lamb barn rises on the dairy cow farm Wide-man’s parents purchased in 1951. Ms. J & Company’s leader “on the ground” is Mariana Marques de Almeida, senior animal scientist and breeding advisor, and the 300 ewes the company inseminated this fall will deliver lambs in Febru-ary and March to populate the new barn. The goal is to build a flock that acquires the genetic profile of the productive Assaf breed in three to four generations. “We’re in this for the long haul,” said Marques de Almeida (who prefers to be called simply, Mariana).

Assaf is an established breed originating in Israel in 1955, according to the newly-published

Handbook of Milk of Non-Bovine Animals. Its breed composition is five/eighths East Friesian and three/eighths Awassi, and Israel followed by Spain have made this their No. 1 breed.

“It’s the best milk-producing dairy sheep in the world,” Mariana noted. “The protein-to-fat ratio is excellent and an Assaf can deliver as much as 2,400 pounds of milk in a lactation season at 5-6 per-cent protein and 6-7 percent fat. It’s twice the milk per animal you might see in a US flock.”

It took two years, and a lot of trust-building, to arrange a trans-fer of frozen semen from Spain to the US, Wideman explained. The Assaf Breeders Association and associated Semen Collection Cen-ter in Spain met the animal health protocols of USDA’s APHIS (Ani-mal and Plant Health Inspection Service), and Wisconsin’s Depart-ment of Agriculture aided in communication between US and Spanish bureaucracies. The ship-ment arrived earlier this year.

This is the first Assaf genetics to reach the US, Mariana said, and the sire and production records on this semen trace back through decades in Spain and Israel. As part of the strict protocol demanded by APHIS, Ms. J & Company must provide traceability for each lamb born during the next five years.

And with a second barn for milking ewes planned to rise in the next 12 months, Wideman noted that building an Assaf flock, rather than cheesemaking, is dominating their business plan. “Our farm will be a demonstration and teaching site, with Mariana’s expertise,” Wideman said. The venture will concentrate on selling Assaf semen and lambs and rams in successive generations, he explained, and will offer milk to other cheese makers. “At this time the genetics is our focus, and that’s enough,” Wide-man said.

Both groups, DSANA and Ms. J & Company, envision seeking more proven genetics in coming years and will ask farms to take lin-eage recording and milk production data to a new level. “We’re starting from scratch in the US with data on rams and ewes,” Laurel Kieffer told WCMA. “Trying to convince farms with 50 ewes or less to begin to collect milk samples and data is an uphill journey,” she added.

Building a robust database will allow dairy sheep producers to ben-efit from outputs such as Estimated Breeding Value and Inbreeding Coefficient – using genetics to improve their bottom line.

At Ms. J & Company, Mariana agrees that genetic improvement and record-keeping are the future of the US dairy sheep industry. “Our success will be the success of every farm that takes on these higher-producing animals,” she said.


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Sacramento, CA—The California Department of Food and Agricul-ture (CDFA) has extended the deadline for submitting ballots on the proposed Quota Implementa-tion Plan (QIP) to Friday, Decem-ber 22, 2017.

Karen Ross, secretary of the CDFA, had in September approved a plan for implementing a stand-alone quota program for the state. The referendum got underway on Oct. 4, and producers initially had 60 days to submit their ballots.

As of Nov. 21, the CDFA had received ballots from 400 produc-ers, which represents approxi-mately 38 percent of producers eligible to vote.

In order for the QIP to be approved, at least 51 percent of the total number of market milk producers in California must vote, and at least 51 percent of those

voting who produce at least 65 per-cent of the total amount of mar-ket milk produced by all producers who voted in the referendum, or at least 65 percent of those vot-ing who produced at least 51 per-cent of the total amount of market milk produced in the state during August 2017 by all producers who voted in the referendum must vote in favor of the proposed QIP.

The proposed QIP will only become effective if a federal milk marketing order is promulgated in California.

USDA’s recommended deci-sion for the establishment of a California federal order, released in February 2017, does not allow for quota to be incorporated in the pricing and pooling provisions of a California federal order.

Rather, it would necessitate quota to operate independently

CDFA Extends Quota Implementation Plan Referendum Deadline To Dec. 22, 2017

of a California federal order as a stand-alone program, administered by the CDFA.

As a result of USDA’s recom-mended decision, the CDFA secured legislative authority to establish the needed stand-alone quota program provisions. A Pro-ducer Review Board (PRB) was charged with developing a recom-mendation outlining the provisions for a stand-alone producer-funded quota program.

The PRB conducted four public meetings between May and Sep-tember 2017, received input from the public and technical assistance from CDFA staff, developed the stand-alone criteria and submitted its recommendations to Ross.

She then determined that the newly developed Quota Imple-mentation Plan will become effec-tive if it is assented by California dairy producers through a referen-dum and a California federal order is enacted.

Citing Lack Of Protein, Parents Advised To Be Cautious With Plant Based BeveragesOttawa, Ontario—Public health dietitians in Canada are concerned about a rise in parents feeding plant-based beverages — such as almond, coconut, and rice — to their infants and young children.

Following reports of infants and young children becoming malnour-ished and one death after being fed plant-based drinks as a main bever-age, Dietitians of Canada is joining with the Canadian Paediatric Soci-ety to urge parents to select bever-ages carefully for their children.

“The challenge for parents is conflicting messages. They read that these drinks are considered ‘healthier’ on social media or hear misinformation about cow milk or fortified soy beverage,” said Becky Blair, public health dietitian and spokesperson for Dietitians of Canada.

Current recommendations for children two to eight years old are to give two cups of cow milk or fortified soy beverage each day to support protein, calcium and vita-min D requirements.

In Canada, full-fat homogenized (3.25 percent milkfat) cow milk is recommended until age two, although cow milk is not recom-mended before nine to 12 months of age. Soy, rice, or other plant-based beverages, whether or not they are fortified, are considered inappropriate alternatives to cow milk in the first two years.

Sargento Foods Extends Multi-Year Relationship With NielsenNew York— Nielsen and Sargento Foods Inc., recently announced the expansion of their multi-year relationship.

With this renewed agreement, Nielsen will continue to deliver information and insights to Sar-gento, in addition to extending services to fuel the company’s cate-gory management, innovation and marketing and sales effectiveness strategies.

For over a decade, Nielsen has been a central and strategic resource to Sargento. Nielsen’s suite of products and services has supported Sargento Foods’ rise to a leading player in the natural shred-ded, sliced, and snacking cheese space.

The pursuit of innovation is part of the heritage of Sargento, as demonstrated by its Nielsen Breakthrough Innovation awards for Ultra Thin Cheese Slices® and Balanced Breaks®.

“More than ever before, today’s consumers are changing the way they think about, and purchase the

products they love,” said Michael Pellegrino, Sargento’s president and chief growth officer. “With Nielsen, we have been able to gain a deeper understanding of our consumer and develop products to meet their needs.

“We trust Nielsen data to edu-cate ourselves and inform our busi-ness decisions — which in turn helps strengthen our relationships with retail partners and consum-ers,” Pellegrino added. “With an eye firmly fixed on the future, we see Nielsen as a crucial partner to drive our continued success,” he continued.


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Trade Forecasts(Continued from p. 1)

fiscal 2015 and a record $7.406 bil-lion in fiscal 2014.

Meanwhile, the US dairy import forecast for fiscal 2018 is unchanged from August, at $3.2 billion. That’s down from fiscal 2017 dairy imports of $3.3 billion, fiscal 2016 dairy imports of $3.36 billion, fiscal 2015 dairy imports of $3.5 billion and fiscal 2014 dairy imports of $3.3 billion.

The US cheese import forecast is reduced from the August forecast by $100 million, to $1.3 billion, due to declining prices, USDA said. Fiscal 2017 cheese imports were valued at $1.17 billion, down from $1.28 billion in fiscal 2016, $1.314 billion in fiscal 2015 and $1.23 billion in fiscal 2014.

Overall, fiscal 2018 US agri-cultural exports are projected at $140.0 billion, up $1.0 billion from the August forecast, largely due to expected increases in corn and dis-tiller’s dried grains with solubles (DDGS). Fiscal 2017 agricultural exports were valued at $140.5 bil-lion, the highest level since 2014, when they totaled $152.3 billion.

US agricultural imports in fiscal 2018 are forecast at $117.0 billion,

up $1.5 billion from the August forecast, due largely to expected increases in imports of animal products. Fiscal 2017 agricultural imports were valued at $119.1 bil-lion, up from $113.0 billion in fis-cal 2016.

The US agricultural trade sur-plus is expected to decline by $500 million to $23.0 billion in fiscal 2018. The fiscal 2017 US agricul-tural trade surplus was $21.3 bil-lion, up from $16.6 billion in fiscal 2016.

World per capita GDP growth is expected to reach 1.9 percent in 2017 and 2.0 percent in 2018. This represents a broad-based pickup in economic activity across devel-oped and developing countries, compared to growth of 1.4 percent in 2016, USDA noted.

In the key emerging markets of Brazil, Russia, India, Indonesia, and China, per capita GDP growth is expected to accelerate to 4.4 per-cent on average in 2017 and 4.7 percent in 2018.

Global trade volume growth is expected to be 5.6 percent in 2017, slowing to 4.2 percent in 2018. This represents a much-improved performance relative to the 1.6 percent growth in 2015 and 2016, USDA pointed out.

The value of the US dollar has declined since the beginning of this year and is expected to generally trend weaker against many trad-ing partners and competitors into 2018. During 2017, these curren-cies gained back some of the value that was lost during the period of dramatic dollar-strengthening that began in late 2014.

Still, the dollar remains well above 2011-2014 levels, supported by a stronger than previously expected United Sta economy and the likelihood that US monetary policy will be restrictive, compared to most of the rest of the world.

Oil prices are expected to rise slightly in 2018 as global crude oil demand continues to grow and extended OPEC production cuts remain uncertain, but these factors are mitigated by increased US production. Expectations are that 2017 and 2018 oil prices will remain low compared with recent price history and will continue to provide farmers, manufacturers, fertilizer producers, and farm prod-uct exporters a low-cost environ-ment.

Per capita income growth in Asia and Oceania is expected to be little changed from 2017, at 3.7 percent in 2018. Income growth in China is expected to slow slightly to 5.9 eprcent in 2018, due to slower demand in Asia, a less expansionary monetary pol-icy, and a slowdown of real estate activity.

Japan is expected to have income growth of 1.6 percent in both 2017 and 2018, helped by a relatively weak currency and strong expected global trade growth.

However, sluggish wage growth, despite a tight labor market, is expected to limit domestic con-sumption. Income growth in India is expected to rise to 6.4 percent in 2018.

China Cuts Tariffs(Continued from p. 1)

USDEC noted. US cheese exports to China rose from 6.3 million pounds in 2010 to a record 27 mil-lion pounds in 2015, then declined to 21.8 million pounds last year.

During the first nine months of this year, US cheese exports to China totaled 21.3 million pounds, up 34 percent from the first nine months of last year.

“We are very pleased with Chi-na’s decision because it will help US cheese exporters and manufac-turers chip away the tariff disad-vantage with other competitors,” said Tom Vilsack, USDEC’s presi-dent and chief executive officer.

“We are even more pleased that the process that yielded the deci-sion helped to further cultivate trust and build critical relationships between the US dairy industry and Chinese official institutions, the nation’s dairy industry and custom-ers,” Vilsack added.

“We took a proactive response to address the competitive disad-vantage our exports were facing,” said Jaime Castaneda, USDEC’s senior vice president, trade policy. “USDEC recognizes that the US remains at a disadvantage not only in China but in other countries when it comes to tariffs due to lack of US free trade agreements.

“We are committed to finding ways to recoup that competitive disadvantage,” Castaneda said.

In addition to four HS Codes covering cheese, USDEC said the Chinese tariff changes also reduced duties on two categories of prod-ucts containing dairy ingredients. Hydrolyzed protein formula for people with special nutritional needs (HS 2106.90.90) was low-ered from 20 percent to zero, and prepackaged infant foods (HS 1901.10.90) was lowered from 15 percent to 2 percent.

Moving forward, USDEC plans to continue working with China to further reduce tariffs on cheese as well as on other dairy products.

“These types of international relationships will be critical to future US dairy export growth and to achieving The Next 5%,” Vil-sack said.

The Next 5% is USDEC’s name for the industrywide effort to expand US dairy exports from the equivalent of about 15 percent of annual US milk solids currently to 20 percent.

China last year ranked as the number three market for US dairy exports on a value basis, trailing only Mexico and Canada. US dairy exports to China peaked at $706.2 million in 2013, but by last year had declined to $384.3 million.

In addition to cheese, other leading US dairy exports to China include whey protein concentrate, dried whey, lactose and other whey products.


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Ontario Backing Chinese Firm’s Baby Formula Plant, Which Will Need Significant Volumes Of Milk Once OperationalKingston, Ontario—Ontario is supporting a subsidiary of Feihe International to establish Kings-ton’s first baby formula production facility.

Specifically, Ontario is invest-ing up to $24 million in Canada Royal Milk ULC, a subsidiary of Feihe International’s over $225 million project.

Ontario Premier Kathleen Wynne met with Feihe Interna-tional last weekend in Beijing to discuss the company’s plans to build its first baby formula produc-tion facility outside of China.

Feihe International produces, packages and distributes milk pow-der and related products to the China market.

With support from Ontario’s Jobs and Prosperity Fund, Feihe will be able to purchase and install innovative, intelligent processing and packaging equipment for the new facility, which will help boost productivity and local production, according to the Ontario Minis-try of Agriculture, Food and Rural Affairs. Once operational in 2020, the plant will require significant volumes of milk, which will sup-port the growth of Ontario’s dairy cow and goat sectors.

“I want to thank Ontario for their support. Ontario and Qigihar, Heilongjiang, where Feihe’s milk resources are located, are both situ-ated in the World’s Golden Milk Belt at 47 degrees north latitude where its natural environment is the most ideal place for producing premium quality dairy products,” said Youbin Leng, chairman of Feihe International.

“With over 55 years of history, Feihe International is China’s largest domestic infant formula company and one of the world’s leading experts in infant formula technology, innovation, nutrition and research and development. We look forward to this historic project and bringing our experi-ence in infant formula to Canada,” Leng added.

“We’re excited to welcome Feihe International to Ontario. In addition to bringing good jobs to the Kingston community, this project will also open up new opportunities for our dairy and goat producers to continue to grow and thrive,” commented Jeff Leal, Ontario’s minister of agriculture, food and rural affairs.

“By partnering with food pro-cessing companies like Feihe International we are not only sup-porting growth in Ontario’s agri-food sector, but we are helping boost our province’s economy,” Leal continued.

Schwan’s New Business Unit Focused On Private Label, Contract Packing; Pizza To Be Key TargetMarshall, MN—Schwan’s Com-pany this week announced the cre-ation of Schwan’s Strategic Partner Solutions, a new business unit focused on growing the company’s private-label and contract-packing businesses with select retailers and food manufacturers.

Creating the new business unit strongly aligns Schwan’s with the increasing strategic importance of private-label brands and prod-ucts in the marketplace, accord-ing to Dimitrios Smyrnios, CEO of Schwan’s.

“Increasingly, we know that today’s consumers see tremendous

value in both branded and high-quality private-label products when making their grocery purchases,” Smyrnios said. “We believe our dynamic manufacturing capabili-ties, iconic brands, high-quality foods, and deep consumer insights position us well to help our cus-tomers grow their branded and private-label businesses as they work to meet the evolving needs of consumers.”

Currently, some of Schwan’s main focuses for its private-label and co-packing activities include pizza, ice cream and appetizers.

Joe Pacinelli, who joined Schwan’s through this past sum-mer’s acquisition of Better Baked Foods — which makes pizza, French bread pizza and other food products — has been appointed president of Schwan’s Strategic

Partner Solutions, and will report to Smyrnios and serve as a member of Schwan’s executive leadershipo team.

“We are fortunate to have some-one with Joe’s experience, industry relationships and business acumen join our company and take on this new opportunity to work strategi-cally with our customers,” Smyr-nios said.

One important category for the new business unit will be pizza. Schwan’s Strategic Partner Solu-tions is working to grow its support of select retail and contract-pack-ing customers on their needs in the category.

Earlier this year, Schwan’s Com-pany announced several acquisi-tions that are helping the company expand its presence in the pizza market.



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Bargaining Power(Continued from p. 1)

the industry, the report said. Dairy farmers exited the industry and milk production fell substantially.

Through this inquiry, the ACCC has analyzed the perfor-mance of the dairy industry and the structural and behavioral fea-tures which contribute to this.

Australia’s farmers and pro-cessors supply products to global and domestic markets, the report noted. These markets are competi-tive and demand continuous sup-ply of high-quality products at low prices. Processors have responded to export and domestic market pressures through major capital investments and adjustments to their business strategies, particu-larly in the last five to 10 years.

“In the domestic market, the major Australian supermarkets have exercised their bargain-ing power over processors to elicit lower wholesale prices and increased efficiency,” the report said. “The most notable illustra-tion of this dynamic is the pricing of private label milk.

“Supermarkets have leveraged their buying power to drive whole-sale prices down and reduce the profit margins of processors,” the report continued. “Ultimately this has enabled the supermarkets to maintain low retail prices. While supermarkets have retained some of these savings for themselves, they have mostly transferred them to consumers in response to retail competition.”

Dairy processors able to supply both export and domestic markets can mitigate their exposure to the supermarkets’ bargaining power to some extent by adjusting the focus of their businesses on different markets as needed. Some negotiat-ing power can also be derived from supplying differentiated and pre-mium products.

“Unlike others in the supply chain, most dairy farmers have no bargaining power and limited scope to reposition their businesses to mitigate this,” the report said.Larger-scale farmers can receive more favorable prices and trading terms and there are “clear produc-tivity benefits” from scale as would be expected, but this is not the typical farmer experience.

The ACCC has identified two main concerns arising from these key findings. First, “softened com-petition between milk processors results in lower farmgate prices than would be the case in a more competitive market.” And second, “bargaining power imbalances deter productivity-enhancing investments by farmers if they are unable to capture a sufficient share of the returns to make the invest-ment worthwhile.”

Dairy farmers’ lack of bargaining power means that they are unlikely to benefit from an increase in the retail or wholesale prices of private label milk or other dairy products, the report stated. Any increases in margins flowing from an increase in the retail price “will simply be captured by the major supermar-kets, or at best shared between the supermarkets and processors.”

“What’s clear is that processors, often under pressure from super-markets or export market competi-tion, use their relative bargaining power to shift risks onto dairy farmers. The power imbalance is evident in the nature of contracts between the processors and farm-ers. These involve uncertain pric-ing information and contract terms which deter switching,” said Mick Keogh, ACCC commissioner.

Improving Bargaining PowerFarmers’ ability to capture appro-priate share of profits depends on their bargaining power, the report said. Measures to improve bargain-ing power will improve their abil-

ity to negotiate a more appropriate share and will also enhance com-petition between processors for raw milk.

This increased competition will also benefit farmers by increasing the minimum price that processors must pay to secure their raw milk supply, the report added.

The ACCC’s report makes eight recommendations arising from its analysis of the industry to date, one of which is that a mandatory code of conduct should be considered for the dairy industry. A mandatory code could contain obligations on processors aimed at improving the contracting practices which cur-rently result in terms that impede competition and distribute dispro-portionate levels of risk to farmers.

A mandatory code could, for example, include obligations on processors to: enter into written contracts with farmers for milk sup-ply; provide timely and transparent information about the terms on which they propose to acquire milk from farmers; not include contract terms which unreasonably restrict farmers’ ability to switch proces-sors; and include a dispute resolu-tion process within contracts.

A mandatory code could also prohibit retrospective step-downs and set out the circumstances in which step-downs more generally are appropriate or inappropriate.

“The ACCC considers the issues identified and examined in this inquiry are serious enough to warrant being addressed by a man-datory code of conduct to apply to processors,” the report said.

Not withstanding that recom-mendation, the ACCC also recom-mended that the voluntary “Code of Practice” launched earlier this year by the Australian Dairy Indus-try Council (ADIC) for standard form contractual arrangements between dairy farmers and proces-sors should continue to operate for at least the short to medium term.

Recommendations also include:nProcessors and farmers should

enter into written contracts for milk supply that are signed by the farmer. This recommendation seeks to increase the clarity and transparency of contracts and milk supply agreements by having farm-ers formally recognize the contract terms to which they are subject.nProcessors should simplify

their contracts where possible, including by minimizing the num-ber of documents and clearly indi-cating which documents contain conditions of milk supply.nMilk supply contracts should

not include terms which unreason-ably restrict farmers from switch-ing between processors. Many milk supply agreements contain clauses which act as switching barriers. These include loyalty bonuses or other payments that are paid in respect of one season but require ongoing supply into a new dairy season.nThe industry should establish

a process whereby an independent body can administer mediation and act as a binding arbitrator or expert in relation to contractual disputes between farmers and processors. The ACCC also recommends that processors include detailed dispute resolution clauses in farmer con-tracts that allow for binding deter-mination or arbitration.nFarmers should ensure they

have considered properly all impli-cations of contracts with proces-sors.nProcessors should publish

information identifying how their pricing offers apply to individual farm production characteristics to enable better farm income fore-casts. Processors need to improve the transparency of their contract pricing terms.

The ACCC is seeking feedback on this interim report by January 31, 2018, before releasing a final report in April 2018.


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Milk In Schools(Continued from p. 1)

among adolescents attending US high schools, self-reported daily milk consumption did not change significantly during 2007-2011, then decreased significantly from 2011-2015.

Also, FNS collected data on milk consumption during the school meals as part of the “School Nutrition and Meal Cost Study” conducted in school year 2014-2015.

The study has not yet been released but a review of prelimi-nary tables from this study com-pared to the same data from the previous study using comparable methodology in school year 2004-2005 suggests a decline in milk consumption during lunch among NSLP participants from school year 2004-2005 (from 75 percent to 66 percent).

The decline was observed in ele-mentary, middle, and high school students.

With the implementation of a 2012 final rule on school meals, NSLP and SBP meal requirements limited flavor to fat-free milk to help schools meet weekly saturated fat and calorie limits, as flavored, fat-free milk contains no saturated fat and approximately 20-40 calo-ries less per eight fluid ounces than flavored, lowfat milk.

The calorie difference is almost entirely due to a difference in fat content, FNS pointed out. Calo-ries from added sugar vary by only one to two calories between the fat-free and lowfat flavored milk varieties.

Data from a recent survey of school foodservice professionals suggests that roughly a third of schools are well within the weekly calorie maximums for school meals and some are below the weekly cal-orie minimums.

Given the experience of these schools, coupled with the marked decreases in daily milk consump-tion among high school students across the US and the nutritional value of milk for children and ado-lescents, USDA has determined that it is consistent with the objec-tive of encouraging milk consump-tion to reduce potential limits on fluid milk by providing schools flexibility to offer flavored, lowfat milk in addition to flavored, fat-free milk.

Comments on this interim final rule will help inform USDA’s deci-sion regarding the long-term avail-ability of this milk flexibility.

IDFA appreciates Secretary of Agriculture Sonny Perdue’s understanding that “the regulatory process needed to move quickly so schools may include lowfat fla-vored milk in their menu planning and procurement processes,” said Michael Dykes, IDFA’s president and CEO. USDA’s interim final rule “will help reverse declin-ing milk consumption by allow-ing schools to provide kids with access to a vareity of milk options, including the flavored milks they enjoy.”

“Secretary Perdue’s willingness to provide greater flexibility to schools recognizes that a variety of milks and other healthy dairy foods is critically important to improving the nutritional contri-butions of child nutrition programs in schools,” said Jim Mulhern, NMPF’s president and CEO.

Sodium FlexibilityThe 2012 final rule on school lunch and school breakfast nutri-tion standards also established average weeekly sodium limits for school meals. That rule established two intermediate sodium targets and a final target.

To facilitate sodium reduction over a 10-year period, the current

regulations, established in 2012, require compliance with Sodium Target 1 beginning July 1, 2014 (school year 2014-2015), Target 2 beginning July 1, 2017 (school year 2017-2018), and the Final Target beginning July 1, 2022 (school year 2022-2023).

Based on program operators’ certification of compliance with the 2012 updated meal pattern requirements, USDA anticipates that nearly all schools have begun the process of reducing the sodium content of school meals. However, USDA understands that sodium reduction in school meals must be consistent with broader, overall reductions in the food supply and reductions in children’s consump-tion patterns outside of school.

While USDA recognizes the importance of reducing the sodium content of school meals, reaching this objective will likely require a more gradual process than the planned 10 years to accommo-date the individual challenges of schools and their access to new products lower in sodium. Factors such as sodium preferences and consumption patterns suggest that retaining Target 1 is appropriate and necessary to ensure student consumption of school meals and adequate nutrient intake.

Therefore, this final rule retains Sodium Target 1 for an additional school year, — from July 1, 2018, through June 30, 2019 (school year 2018-2019). While USDA antici-pates retaining Sodium Target 1 as the regulatory limit in the final rule through at least the end of school year 2020-2021, the depart-ment is seeking comments on the long-term availability of this flex-ibility and suggestions on how to best address the overall sodium requirement in school meals.

Comments on this final rule are due by Jan. 29, 2018, and may be submitted at www.regulations.gov.

Caputo’s Market Takes Best Of Show In First Utah Cheese AwardsSalt Lake City, UT—A House Cheddar made by Caputo’s Mar-ket & Deli here earned Best of Show honors in the inaugural Utah Cheese Awards.

Judging took place here Aug. 22 when three judges sampled 69 entries from 15 companies and awarded 30 medals and a Best of Show in both cheese and non-cheese categories.

To enter, all products must be made, collected, grown or baked within the state of Utah by com-mercially licensed businesses.

Winners were announced and celebrated at a special event here in late October.

Finishers in the Cheese cat-egory include:

Hard CheeseGold medal: Aggie Creamery, Logan, UT, AggianoSilver: Rockhill Creamery, Rich-mond, UT, Zwitser GoudaBronze medal: Rockhill Cream-ery, Baby Boo Boo SwissBronze medal: Gold Creek Farms, Kamas, UT, Parmesan

Soft CheeseGold medal: Caputo’s, House-made Burrata

CheddarGold medal: Caputo’s, House CheddarSilver medal: Aggie Creamery, Old JuniperBronze medal: Hollow Farm, Pepper Cheddar

Cheese With AdjunctsGold medal: Heber Valley Artisan Cheese, Midway, UT, Wasatch Back JackSilver medal: Beehive Cheese, Unitah, UT, Fully LoadedBronze medal: Beehive Cheese, Promontory

CurdGold medal: Hollow Farms, Freshest ChoiceSilver medal: Hollow Farms, Hoppin’ JalapenoBronze medal: Aggie Creamery, Squeaky Cheese

Sheep Or Goat’s Milk CheeseGold: Caputo’s, Mesa Tome

Large ProducerGold medal: Gossner Foods, Logan, UT, Baby SwissSilver: Gossner Foods, SwissBronze medal: Gossner Foods, Old World Flavor

Non-cheese entries were separated into four categories, including Charcuterie, Sauces, Breadstuffs and Chocolate.

Best of Show went to Salt Lake City’s Bread Riot Bakehouse. For a full list of winners, visit utah-cheeseawards.wordpress.com.



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PERSONNELSix members were appointed Tuesday to serve on the National Fluid Milk Processor Promo-tion Board, with terms effec-tive immediately and will expire June 30, 2020. Newly-appointed members are RANDELL ERONI-MOUS, Seattle, WA, Region 13; and ERIN SHARP, Cincinnati, OH, at-large processor. Reap-pointed members include LYNNE BOHAN, Lynnfield, MA, Region 2; JEFFREY STEPHENS, Lake-land, FL, Region 5; EDWARD MULLINS, Carlinville, IL, Region 11; and EVAN RAIN-WATER, Boise, ID, Region 14.

After serving as CEO of Chr. Hansen for almost five years, CEES De JONG announced his decision to pursue a career as a non-executive director outside of the company. Chr. Hansen has initiated the process to find a replacement and until then, Cees de Jong will continue as CEO.

JOHN PENNO, longtime CEO and founder of Synlait Milk, announced his intention to step down in the next 12 months. Penno has served as CEO and managing director of Synlait Milk for the last 12 years, founding the company five years before that.

THEO SPIERINGS, Fonterra CEO, has been appointed chair-man of the Global Dairy Plat-form (GDP). Spierings, who has been a director on the GDP board since 2012, will succeed Dairy Farmers of America (DFA) CEO RICK SMITH, who has chaired the organization since 2015. Smith will continue to serve on the board along with Arla Foods CEO PEDER TUBORGH and FrieslandCampina CEO ROE-LOF JOOSTEN.

The International Dairy Foods Association (IDFA) has named THOMAS WOJNO to a newly created position as senior vice president of innovation and member advancement. In this role, Wojno will be responsible for identifying and implement-ing strategies to enhance IDFA services, expand membership and develop new opportunities for growth. Prior to joining IDFA, Wojno served as vice president of member value and strategy for the National Restaurant Association.

KEELEY MOLL has been appointed deputy secretary at the Wisconsin Department of Agri-culture, Trade and Consumer Protection (DATCP). Moll served as the agency’s legislative and policy advisor since 1997. While in this position, she was part of major policy efforts includ-ing farmland preservation and animal health. Before that, Moll was a staff member for then-Rep. Ben Brancel in the State Capitol.

JEREMY SYRING, former plant manager at Dean Foods Company in DePere, WI, has joined Cher-ney Microbiological Services, Ltd. as client services manager. In this role, Syring will be respon-sible for providing guidance and support to existing customers and finding new ones. Syring comes to Cherney with almost 20 years of dairy industry experience, hav-ing worked his way from lab tech-nician to plant manager at Dean Foods. KARRIE BIERHALS has come to Cherney as technical services manager with 13 years of food and beverage lab experience. As technical services manager, Bierhauls will provide guidance to team members and clients. She will also help develop content for Cherney College Training classes.

NCCIA Recognizes Kelley, Kruger And Kucker With Honorary Memberships

The North Central Cheese Industries Association recently honored Neil Kucker (left), retired from Ecolab; Mike Kruger (center) retired from Midwest Dairy Association; and Dic Kelley, retired from Nelson-Jameson with honorary membership in the association. The three were honored at the NCCIA annual convention held in October in Rochester, MN. The award goes to those individuals who provided distinguished services to the industry.

LaClare Family Creamery Acquires Assets Of Missouri-Based Heartland CreameryMalone, WI and Newark, MO— LaClare Family Creamery is acquir-ing the assets of Missouri-based Heartland Creamery.

Terms of the transaction between the cheese companies were undisclosed. The acquisition process will take place over the next several weeks.

Heartland Creamery is a farm-stead operation in rural northeast Missouri situated on a 17,000-acre farmland. Home to over 2,100 goats, milk is brought to the Creamery just down the road.

Since 2005, Heartland has grown to a current daily produc-tion of 3,000 pounds of fresh and aged cheese.

Heartland Creamery’s product line includes cow and goat’s milk Cheddars; Gouda-style varieties such as Legacy, Brimstone, Vin-tage and Naturally Goat; and Fresh Chevre in flavors such as Cran-berry Pecan, Fine Herbs, Honey Almond, Blueberry Vanilla, Mango Pineapple, Apple Honey and Pumpkin Snap.

Products are sold to retail stores and restaurants throughout Iowa, Illinois, Kansas, Missouri, and Nebraska.

“The move will allow us to cou-ple Heartland’s processing with

our highly-regarded goat milk sup-ply,” commented Katie Fuhrmann, LaClare’s co-owner and head cheese maker.

“Charles Sharpe took a ‘family-first’ approach to his workforce when he launched Heartland Creamery in 2005. And that’s cer-tainly another value we share,” said Larry Hedrich, co-founder of LaClare Family Creamery.

“While Charlie is no longer with us, his vision and values are something we’re privileged to con-tinue,” he continued.

LaClare Farms was first estab-lished in 1978 as a hobby opera-tion. Encouraged by the growing demand for farm fresh foods, the Hedrich family set out to build on the nutritional qualities of goat milk, and began to offer a full line of dairy goat products. Today, LaClare Farms is owned and operated by Larry and Clara Hedrich and four of their five chil-dren, including daughter Katie Fuhrmann.

Earlier this year, LaClare Fam-ily Creamery expanded its product offerings, upgraded its processing capacity, and recruited nationally recognized cheese affineur David Rogers.

Along with goat milk cheeses, LaClare Farms also produces fluid goat milk and goat milk yogurt in Plain, Vanilla, Blueberry and Strawberry.

For more details, visit www.laclarefamilycreamery.com.


For more information, circle # 10 on the Reader Response Card on p. 14

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Suspended Ceiling Panels and Doors also Available

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EXTRUTECH PLASTICS, INC.5902 West Custer St., Manitowoc, WI 54220Phone: 888-818-0118 • Fax: 920-684-4344www.epiplastics.com • E-mail: [email protected] 9001-2008 QMS Certified

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Worle, England—UK cheese com-pany Wyke Farms and the Organic Milk Suppliers Cooperative (OMSCo) this week announced the launch of their new joint busi-ness identity, The British Organic Dairy Company.

The collaboration is intended to provide a more robust, yet flexible, operation to produce key organic dairy products for domestic and global markets.

“In July, we announced that we were forming a partnership with Wyke Farms,” said Richard Hamp-ton, OMSCO’s managing director. “The partnership, within which we both have an equal share, provides us with a focus to grow organic dairy opportunities together.

“The launch of our business-to-business brand, The British Organic Dairy Company, is an exciting development and will enable us to facilitate the sales and marketing of our products under a joint brand identity,” Hampton continued.

At the heart of the partnership is a desire from both companies to vertically integrate to produce a guaranteed supply of high quality, good value organic dairy products across the globe.

“By working with Wyke Farms, the UK’s largest independent cheese maker, we can provide a unique proposition to distributors and retailers and take advantage of growing markets,” Hampton com-mented.

OMSCo has proven expertise in producing organic milk to specific export standards and already has EU, USDA and Chinese certifica-tion, Hampton noted.

“Through the partnership, Wyke Farms will source all their organic milk requirements from

ourselves, providing a flexible, yet guaranteed, supply of organic milk,” Hampton said. “And in turn, we will also take a share in the ownership of bulk organic Cheddar stocks.”

Richard Clothier, managing director and third-generation fam-ily member at Wyke Farms, said the company is excited about the opportunities the partnership, and subsequent joint identity, presents.

“We know that global demand for organic dairy is growing, but we’re also aware of domestic opportunities. For instance, the UK organic cheese category is currently under-performing rela-tive to overall organic dairy, with just 1 percent market share within cheese, compared to 5 percent in liquid milk and 8.5 percent in yogurt,” Clothier said.

He attributes this shortfall to supply chain issues, such as poor quality driving low repeat pur-chases, sporadic supply and a relatively costly supply chain. But these issues will be mitigated through the partnership.

“Having a guaranteed supply of organic milk and mutual focus on growing the category will enable us to increase our stock levels and produce more cost-effective prod-ucts,” Clothier said. “This will cre-ate a solid platform to grow sales of organic dairy products and enable us to reach the potential of a grow-ing world market, now and post-Brexit.”

Wyke Farms is based in the heart of the Somerset Cheddar-making region. The Clothier family has been making Cheddar in Somerset since 1861. Today, Wyke Farms is one of the largest independent cheese makers and milk processors in the UK.

Chr. Hansen Obtains Global Distribution Of Rheolution’s CoaguSens, ElastoSens ProductsHoersholm, Denmark—Chr. Hansen has entered into a partner-ship with Rheolution Inc. on the global distribution of Rheolution’s CoaguSensTM and ElastoSensTM products.

Aimed at cheese makers, the products offer real-time analytics of the milk coagulation process, Chr. Hansen explained. In real time and near the vats, they mea-sure the flocculation point (where solid particles are separated from the liquid), the milk gel firmness, as well as the speed of coagulation.

The milk gel-cutting step is often the least-controlled step in the cheesemaking process, but with the insights that this technol-ogy can derive, cheese makers will know precisely the optimal time to cut the cheese curd at a controlled firmness, Chr. Hansen noted. This will enable them to retain the greatest amount of protein and fat from the milk in their cheese, thus increasing the overall value gener-ated from the milk processed.

“Rheolution has chosen Chr. Hansen as its strategic sales part-

ner because of the perfect synergy between the core expertise of the two companies,” said Anis Hadj Henni, CEO of Rheolution Inc.

“Together, we look forward to improving the quality and yield of cheese and fresh fermented prod-ucts,” Hadj Henni added.

The new partnership not only expands Chr. Hansen’s product portfolio, which already includes coagulants, cheese cultures and tests, to include real-time data analysis tools, it also strengthens the company’s role as a go-to solu-tions provider for cheese makers worldwide, the company said.

“Our partnership with Rheo-lution brings us one step closer to the practical use of digitaliza-tion to optimize the coagulation in the cheese vat. Jointly we will make CoaguSens the reference technology for the dairy industry and further develop the analytical applications of the products,” said Soeren Herskind, vice president, cheese, Chr. Hansen.

Headquartered in Montreal, Quebec, Rheolution was founded in 2009 by Anis Hadj Henni and Cedric Schmitt, who is the compa-ny’s CTO. Today, CoaguSens and ElastoSens are up and running for cheese producers throughout the US, Canada and Europe.

UK Cheese Company Wyke Farms, Organic Milk Co-op Launch Joint Business Identity


www.cheesereporter.com/events.htmSUPPLIER NEWS

COMPANY NEWS

PEOPLE

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Cheese Reporter Ad.pdf 1 2/25/15 5:07 PM

Dec. 6-8: ADPI/CME Dairy Risk Management Seminar, Fess Parker Doubletree, Santa Bar-bara, CA. Visit www.adpi.org.

•Jan. 21-23: 43rd Winter Fancy Food Show, Moscone Center, San Francisco, CA. Visit www.specialtyfood.com.

•Jan. 21-24: Dairy Forum 2018, J.W. Marriott Desert Springs, Palm Desert, CA. For details, visit www.idfa.org.

•Feb. 11-14: International Sweetener Colloquium, Ritz-Carlton Grande Lakes, Orlando, FL. For details, visit www.idfa.org.

•March 5-6: NYS Cheese Manu-facturers’ Association’s Spring Meeting, DoubleTree Hotel, Syracuse, NY. For details, visit www.nyscheesemakers.com.

•March 6-8: World Champion-ship Cheese Contest, Monona Terrace Convention Center, Madison, WI. Visit www.world-championcheese.org.

•April 17-19: International Cheese Technology Expo, Mil-waukee Center, Milwaukee, WI. Visit www.cheeseexpo.org.

•April 29-May 1: ADPI/ABI Annual Conference, Chicago Downtown Marriott, Chicago, IL. Visit www.adpi.org/events.

•June 10-12: International Dairy-Deli-Bakery Association Expo, New Orleans, LA. For details, visit www.iddba.org.

•July 15-18: Institute of Food Technologists (IFT) Expo, McCormick Place, Chicago, IL. Visit www.iftevent.org.

•July 25-28: American Cheese Society (ACS) Annual Confer-ence, David L. Lawrence Con-vention Center, Pittsburgh, PA. For more information, visit www.cheesesociety.org.

•Aug. 9-10: IMPA Annual Meet-ing, Sun Valley Resort, Sun Val-ley, ID. More details available soon at www.impa.us.

PLANNING GUIDE

Basic-Plus Cheese Making Short CourseJanuary 30 - February 1, 2018Mount Vernon, Washington

32nd Advanced Cheese Making Short CourseMarch 6 - 8, 2018

Pullman, Washington

Pasteurization WorkshopApril 10 - 12, 2018Pullman, Washington

Register at:

creamery.wsu.edu/about‐us/upcoming‐events/

For more information contact: John Haugen

WSU Creamery [email protected]

509.335.5733

2018 Washington State University Creamery

Educational Opportunities

IDF To Highlight The Role Of Dairy In Sustainable Diets Feb. 1-2 In Seville, SpainSeville, Spain—The International Dairy Federation (IDF) will hold a symposium here Feb. 1-2, 2018 to discuss the contribution of dairy in sustainable diets.

The two-day symposium will highlight the public perception of dairy, health claims, public health nutrition, sustainable diets, mitiga-tion of environmental impact and adaptation to climate change.

The event will offer partici-pants a mix of presentations and content, covering both nutritional and environmental facets of both topics. The first day of the program will include three sessions, focus-ing on sustainable diets, public per-ceptions of dairy and dairy as part of a nutritious diet.

Speakers will cover dairy prod-ucts and how they fit into nutri-tionally adequate and sustainable diets; a case study of US dairy con-

sumption; and a review of dietary strategies to reduce environmental impact.

A session the public perceptions of dairy will address the public’s perceptions of dairy in different countries; how to address consumer preferences and public concerns regarding nutrition; changing per-ceptions on saturated fats; and changing perceptions about animal health and welfare.

The third session – dairy as part of a nutritious diet – will cover milk consumption and mortality, health claims on dairy products, and dairy-derived nutraceuticals.

Day two will focus on the envi-ronmental and socioeconomic impact of dairy and mitigation of environmental impact and adapta-tion to climate change.

Topics of discussion include sustainability metrics used in dairy

companies; dairy farmer sustain-ability based on socioeconomic indicators; and the benefits of dairy nutrition in global development.

The final session will focus on the mitigation of environmental impact and adaptation to climate change.

Speakers will talk about the dairy sustainability framework; mitigat-ing greenhouse gas impact of the dairy sector; how the dairy industry can adapt to climate change; and the future of environmental poli-cies for food.

Cost to attend the symposium is and includes access to both days of the conference, lunch, refresh-ment breaks and a special dinner on Feb. 1.

For full symposium agenda or to register for the event online, visit www.fil-idf.org.

Cellars At Jasper Hill, Sterling College Of VT Partner For Artisan Cheese WorkshopCraftsbury Common, VT—The School of the New American Farmstead at Sterling College, in partnership with the Cellars at Jas-per Hill, will offer a Fundamentals of Artisan Cheese course here Jan. 22-31, 2018 for aspiring and prac-ticing cheese makers.

Led by expert cheese maker and educator Ivan Larcher, the eight-day workshop will provide the practical and scientific knowledge needed to make small-scale artisan

cheese. Sessions will take place on campus, at Jasper Hill in Greens-boro, and at the Vermont Food Venture Center in Hardwick.

Larcher will begin with topics like animal husbandry and welfare, forage and feed, dairy production and milk quality.

He will also explore raw and pasteurized milk theory, cheese microbiology, coagulants, curdling mechanisms and starter cultures.

Hands-on cheesemaking ses-sions will focus on the production of lactic, hard, soft, Saint Nectaire and traditional Brie.

Students will learn about affi-nage, ripening cultures, climate control, rind treatment, and han-

dling cheese through the aging process.

A session on defects and trouble-shooting will help students man-age production and the inherently variable ecological process of chee-semaking and aging. Finally, stu-dents will learn about the business of cheesemaking, sales, distribu-tion and content-based marketing.

A registration fee of $3,000 cov-ers tuition, course materials and transportation between all course locations. The course is intended for confident home cheese makers and those with experience in com-mercial cheesemaking. For more details or to register online, visit www.sterlingcollege.edu.


MARKET PLACECLASSIFIED ADVERTISINGphone: (608) 246-8430 fax: (608) 246-8431e-mail: [email protected]

rvin

gth

eWorld's Dairy Industry W

eekly

Since 1876

Classified ads should be placed by Thursday for the Friday issue. Classi-fied ads charged $.75 per word. Clas-sified ads payable in advance. Display Classifieds charged per column inch. For information, call 608-246-8430.

1. Equipment for Sale

SEPARATOR NEEDS - Before you buy a separator, give Great Lakes a call. TOP QUALITY, reconditioned machines at the lowest prices. Call Dave Lam-bert, Great Lakes Separators at (920) 863-3306; [email protected].

MSA 200 WESTFALIA SEPARATOR. Just arrived. Perfect Bowl condition - NO PITTING. Two for sale. Call Great Lakes Separators at (920) 863-3306 or e-mail [email protected].

HIGH CAPACITY SEPARATOR: Alfa-Laval hmrpx 718 HGV hermetic separator. 77,000 pounds per hour sep-aration/110,000 pounds per hour stan-dardization. Call Great Lakes Separator at 920-863-3306 or email [email protected].

FOR SALE: Car load of 300-400-500 late model open top milk tanks. Like new. (262) 473-3530

FOR SALE: 1500 and 1250 cream tanks. Like New. (800) 558-0112. (262) 473-3530.

2. Equipment Wanted

2. Equipment Wanted

WANTED TO BUY: Westfalia or Alfa-Laval separators. Large or small. Old or new. Top dollar paid. Call Great Lakes Separators at (920) 863-3306 or email [email protected]

3. Products & Service

FOR SALE: Unique Corrugated Cow Print Gift Boxes for the Holidays or year-round Regular Cow Print. Different sizes available. Please con-tact: [email protected] or call Miranda at 608-798-2247. Please check out our website: dairylandpack-aging.com. We are your source for all packaging needs.

3. Products & Services

LOOKING FOR HARD-TO-FIND PRODUCTS OR SERVICES? Adver-tise your search here and on www.cheesereporter.com. For more informa-tion, contact Cheese Reporter by call-ing 608-246-8430 or by emailing [email protected].

4. Walls, Flooring

EPOXY OR FIBERGLASS floors, walls, tank-linings, and tile grouting. Installed by M&W Protective Coating Co. LLC. For more information, please call (715) 234-2251.

4. Walls, Flooring

EXTRUTECH PLASTICS Sanitary POLY BOARD© panels provide bright white, non-porous, easily cleanable surfaces, perfect for non-food con-tact applications. CFIA and USDA accepted and Class A for smoke and flame. Call 888-818-0118 or epiplas-tics.com for more information.

5. Real Estate

DAIRY PLANTS FOR SALE: http://

dairyassets.webs.com/acquisitions-

mergers-other. Contact Jim at 608-

835-7705; or by email at jimcisler7@

gmail.com

6. 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].

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

7. Help Wanted

Looking for qualified candidates for your dairy operation? Advertise here to reach a targeted, qualified readership of current employees. Contact [email protected] or call 608-246-8430 for details.

8. Positions Wanted

10. Cheese & Dairy Products

FOR SALE: Vintage 10-20+ year old Cheddar cheese. Available by the pound, by the block or by the pallet. Originally made in Black Creek, WI. Call Carol, Joe’s Cheese House at (715) 735-6922.

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

14. Warehousing

REFRIGERATION, DRY & FROZEN STORAGE SPACE AVAILABLE: We’ve added cooler space and a heated dry storage area. Contact: Eric at Sugar River Cold Storage 1-877-283-5840 or email [email protected] more information.

17. Miscellaneous

The Plant Supervisor is responsible for improving produc�on opera�ons at the facility. This individual will work closely with all departments to establishprocess methods that ensure opera�onal effec�veness and produc�on adherence. The Plant Supervisor is responsible for the development, implem-enta�on and maintenance of the job training program. Strong collabora�onis needed across the plant and the en�re AMPI organiza�on.

Monitor produc�on cleanups. Provide analy�cal input to improve labor u�liza�on and efficiencies during sanita�on processes. Work jointly with maintenance to iden�fy equipment issues, establish day to day op- opera�onal priori�es and improve machine up�me. Facilitate produc�on expecta�ons with plant personnel; ensuring that goals are met on a day to day, month to month basis. Ensure that produc�on equipment setups are completed in the �meframe required to meet department expecta�ons and efficiencies. Establish training procedures and processes that provide strategic ac�on plans to improve job knowledge and training. Build a strong working rela�onship with plant personnel, providing leadership, teaching, and effec�ve communica�on methods, that ensure enforcement of company policies and procedures. Will be the liaison for the produc�on floor so�ware which will include addressing system performance issues and training. Provide direct support to the Safety Coordinator by assis�ng with changes and updates to various policies and procedures of the safety program. Review and approve cheese department payroll. Provide absentee coverage for the Produc�on Coordinator.

3 plus years cheese making experience; 5 plus years supervisory experience; 4 year college degree or equivalent experience.

Apply online at: www.ampi.com

AMPI is an EEO employer – Veterans/Disabled and other protected categories

CHEESE PLANT SUPERVISOR

JOB SUMMARY

ESSENTIAL RESPONSIBILITIES

EDUCATION/EXPERIENCE

The VP of Manufacturing is the strategic leader for AMPI’s 5 American Style Cheese & Whey Manufacturing Plants. The VP of Manufacturing provides the strategic and tac�cal direc�on of the produc�on facili�es in line with AMPI’s values, strategic plan, and financial objec�ves. While driving a culture thatfosters employee engagement and collabora�on, the aim is to meet customer objec�ves, maintain compliance with quality and regulatory requirements whilereducing costs and achieving opera�onal manufacturing excellence.

This list of du�es and responsibili�es is not all inclusive and may be expand-ed to include other du�es and responsibili�es as management may deemnecessary from �me to �me. 1. Lead mul�ple plant opera�ons and support division managers of AMPI’s cheese plants. 2. Provide leadership to improve efficiency and op�mize exis�ng produc�on opera�ons. 3. Streamline workflow and create a team environment to increase produc�vity and con�nuous improvement. 4. Develop Key Performance Indicators (KPI’s) that will be effec�ve in providing manager’s goals for monthly and yearly sta�s�cs that align with corporate goals and strategies. 5. Par�cipate in strategic planning ac�vi�es. Iden�fy capability and/or capacity gaps in exis�ng staffing, equipment, and processes. Propose solu�ons to support the strategic ini�a�ves, including �ming, cost, and ROI (when applicable). 6. Work with division leadership to prepare capital appropria�on requests for con- sidera�on by the senior leadership team. 7. Support division leadership to implement best prac�ces in manufacturing in the areas of quality, efficiency, produc�vity and cost. 8. Contribute to the annual budget. Determine opera�onal expenditures and then manage the budget and cost controls in overall opera�ons. 9. Represent AMPI at Industry Organiza�ons and Conferences such as NCCIA, WCMA and others as appropriate.

Bachelor of Science Degree in Science, Engineering, Business or equivalent. Minimum of 10 years of experience in a Senior Leadership posi�on.

Apply online at: www.ampi.com

AMPI is an EEO employer – Veterans/Disabled and other protected categories

VP OF MANUFACTURING -CHEESE & WHEY PRODUCTS

ESSENTIAL RESPONSIBILITIES

EDUCATION/EXPERIENCE


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

‘10 14.50 14.28 12.78 12.92 13.38 13.62 13.74 15.18 16.26 16.94 15.44 13.83‘11 13.48 17.00 19.40 16.87 16.52 19.11 21.39 21.67 19.07 18.03 19.07 18.77‘12 17.05 16.06 15.72 15.72 15.23 15.63 16.68 17.73 19.00 21.02 20.83 18.66‘13 18.14 17.25 16.93 17.59 18.52 18.02 17.38 17.91 18.14 18.22 18.83 18.95‘14 21.15 23.35 23.33 24.31 22.57 21.36 21.60 22.25 24.60 23.82 21.94 17.82‘15 16.18 15.46 15.56 15.81 16.19 16.72 16.33 16.27 15.82 15.46 15.30 14.44 ‘16 13.72 13.80 13.74 13.63 12.76 13.22 15.24 16.91 16.39 14.82 16.76 17.40 ‘17 16.77 16.88 15.81 15.22 15.57 16.44 15.45 16.57 16.36 16.69 16.88

HISTORICAL MILK PRICES: CLASS III

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

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

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

For information about the adver-tisements or new product infor-mation, circle the number below which corresponds to the ad or article in which you are interested.

Issue Date: 12/01/17

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November 29, 2017—AMS’ National Dairy Products Sales Report. Prices included are provided each week by manufacturers. Prices collected are for the (wholesale) point of sale for natural, unaged Cheddar; boxes of butter meeting USDA standards; Extra Grade edible dry whey; and Extra Grade and USPH Grade A nonfortified NFDM. •Revised

WEEK ENDINGStyle and Region Nov. 25 Nov. 18 Nov. 11 Nov. 4

40-Pound Block Cheddar Cheese Prices and Sales Weighted Price Dollars/PoundUS 1.7418 1.7375 1.7534 1.7563 Sales Volume PoundsUS 9,698,284 11,019,011• 11,684,792 11,089,991

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

Weighted Price Dollars/PoundUS 1.8311 1.8419• 1.8341 1.8140 Weighted Price Adjusted to 38% Moisture US 1.7466 1.7566• 1.7458 1.7306 Sales Volume PoundsUS 10,716,292 11,784,654• 12,956,560 11,273,324Weighted Moisture Content PercentUS 35.00 34.99 34.86 35.01

Butter

Weighted Price Dollars/PoundUS 2.2753 2.2483• 2.2776 2.3328Sales Volume PoundsUS 1,756,115 3,219,949• 3,267,401 2,450,063

Dry Whey Prices

Weighted Price Dollars/PoundsUS 0.3471 0.3534 0.3584• 0.3717Sales Volume US 3,591,287 5,722,891 6,233,722 5,705,722

Nonfat Dry Milk

Average Price Dollars/PoundUS 0.7416 0.7547• 0.7577• 0.7662•Sales Volume PoundsUS 16,464,867 18,341,858• 16,982,344• 18,005,613•

DAIRY PRODUCT SALES

Class III - Cheese Milk Price 2016 2017PRICE (per hundredweight) $16.76 $16.88SKIM PRICE (per hundredweight) $9.74 $8.23

Class II - Soft Dairy Products 2016 2017PRICE (per hundredweight) $14.60 $15.32BUTTERFAT PRICE (per pound) $2.1114 $2.5616SKIM MILK PRICE (per hundredweight) $7.47 $6.58

Class IV - Butter, MP 2016 2017

PRICE (per hundredweight) $13.76 $13.99

SKIM MILK PRICE (per hundredweight) $6.63 $5.23

BUTTERFAT PRICE (per pound) $2.1044 $2.5546

NONFAT SOLIDS PRICE (per pound) $0.7367 $0.5816

PROTEIN PRICE (per pound) $2.8085 $2.3412

OTHER SOLIDS PRICE (per pound) $0.1750 $0.1644

SOMATIC CELL Adjust. rate (per 1,000 scc) $0.00088 $0.00088

AMS Survey Product Price Averages 2016 2017

Cheese, US 40-block, NASS $1.7596 $1.7617Butter, CME $1.9092 $2.2810Nonfat Dry Milk $1.9119 $0.7553Dry Whey $0.3690 $0.3587

Class Milk & Component PricesNovember 2016 with comparisons to November 2017

DAIRY FUTURES PRICESSETTLING PRICE *Cash SettledDate Month Class III* Class IV* Dry Whey* NDM* Butter* Cheese*11-24 November 17 — — — — — —11-27 November 17 16.80 14.01 35.575 75.525 228.250 1.758011-28 November 17 16.81 14.00 35.575 75.525 228.225 1.758011-29 November 17 16.88 13.99 35.870 75.530 228.100 1.761011-30 November 17 — — — — — —11-24 December 17 — — — — — —11-27 December 17 15.21 13.74 31.500 74.600 224.475 1.617011-28 December 17 15.25 13.74 31.900 74.600 223.025 1.618011-29 December 17 15.25 13.69 31.900 73.600 223.000 1.620011-30 December 17 15.37 13.65 32.500 73.600 222.500 1.6260

11-24 January 18 — — — — — —11-27 January 18 14.46 13.73 28.050 74.000 225.475 1.562011-28 January 18 14.39 13.77 28.050 75.275 224.050 1.555011-29 January 18 14.47 13.76 28.050 73.300 225.350 1.560011-30 January 18 14.68 13.68 28.950 72.825 224.125 1.575011-24 February 18 — — — — 237.500 1.577011-27 February 18 14.44 13.93 25.725 76.275 226.500 1.569011-28 February 18 14.44 13.93 25.725 76.275 233.500 1.609011-29 February 18 14.52 13.93 26.000 74.200 227.000 1.586011-30 February 18 14.71 13.84 26.500 7.000 226.150 1.590011-24 March 18 — — — — — —11-27 March 18 14.56 14.00 25.675 74.625 229.000 1.584011-28 March 18 14.52 14.04 25.500 76.275 228.150 1.582011-29 March 18 14.57 14.04 25.500 75.000 228.025 1.601011-30 March 18 14.74 13.99 25.900 74.850 228.350 1.5970

11-24 April 18 — — — — — —11-27 April 18 14.74 14.19 25.650 75.750 230.575 1.603011-28 April 18 14.74 14.20 26.650 76.350 230.025 1.603011-29 April 18 14.75 14.20 25.600 76.550 230.975 1.601011-30 April 18 14.93 14.20 26.500 76.500 229.700 1.6210

11-24 May 18 — — — — — —11-27 May 18 15.00 14.30 25.650 77.275 231.575 1.625011-28 May 18 14.98 14.38 25.500 77.925 231.750 1.626011-29 May 18 15.00 14.38 25.500 78.175 231.800 1.626011-30 May 18 15.18 14.38 26.000 78.250 231.800 1.6460

11-24 June 18 — — — — — —11-27 June 18 15.27 14.55 25.500 79.200 233.000 1.657011-28 June 18 15.27 14.61 25.500 78.725 233.400 1.659011-29 June 18 15.27 14.61 25.500 79.950 233.600 1.655011-30 June 18 15.39 14.61 26.000 80.000 233.250 1.6670

11-24 July 18 — — — — — —11-27 July 18 15.55 14.87 26.450 80.800 235.500 1.679011-28 July 18 15.55 14.87 26.450 81.900 235.500 1.681011-29 July 18 15.57 14.87 26.450 82.075 235.500 1.685011-30 July 18 15.65 14.87 26.450 81.525 235.175 1.695011-24 August 18 — — — — — —11-27 August 18 15.60 15.10 26.300 82.575 237.275 1.689011-28 August 18 15.60 15.10 26.300 82.300 237.275 1.693011-29 August 18 15.70 15.10 26.300 82.075 237.275 1.697011-30 August 18 15.75 15.10 26.300 83.275 237.025 1.7090

11-24 September 18 — — — — — —11-27 September 18 15.69 15.23 26.000 83.825 238.300 1.696011-28 September 18 15.71 15.23 26.000 84.075 238.300 1.705011-29 September 18 15.76 15.23 26.000 83.500 238.300 1.706011-30 September 18 15.86 15.23 26.000 84.925 238.300 1.7150

Interest - Nov. 30 24,386 1,737 3,355 6,326 4,280 24,346

$12.00

$14.00

$16.00

$18.00

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

Class II Milk Price2017 vs. 2016

$12.00

$14.00

$16.00

$18.00

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

Class IV Milk Price2017 vs. 2016

$1.35

$1.45

$1.55

$1.65

$1.75

$1.85

$1.95

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

40-Pound Block Avg

CME vs AMS


DAIRY PRODUCT MARKETSAS REPORTED BY THE US DEPARTMENT OF AGRICULTURE

WHOLESALE CHEESE MARKETS

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

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

11/27/17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,626 96,78011/01/17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,182 94,908Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -5,556 1,872

NATIONAL - NOV . 22: Discounted milk into cheese plants has spurred cheese produc-tion this week . Plant managers are facing the challenge of allotting production time off, while taking on bargain spot milk loads . Demand is generally steady to slow across all regions . West-ern contacts report that export interest has picked up . Midwest cheese contacts report that cheese inventories are balanced to long . Some cheese makers are reporting that fluctuating market prices are giving buyers pause . CME block prices are currently below those of barrel prices . Contacts generally view this as a market destabilizer .

NORTHEAST- NOV . 29: Milk production in the Northeast is steady to higher . Milk is available for manufacturing operations . Cheese production is steady to strong . With continu-ous output, cheese supplies are in balance to heavy . The demand is healthy as retailers are regularly reloading the cheese coolers for customers’ holiday needs .

Wholesale prices, delivered, dollars per/lb:Cheddar 40-lb blocks: $2.0625 - $2.3475 Process 5-lb sliced: $1.8025 - $2.2825Muenster: $2.0475 - $2.3975 Swiss Cuts 10-14 lbs: $3.2875 - $3.6100

MIDWEST AREA - NOV . 29: Milk into Class III plants has remained accessible fol-lowing Thanksgiving weekend . Spot milk prices ranged from flat market to $4 under Class . Production schedules have increased to meet the current influx of milk . Mozzarella and provolone orders have slowed down in the wake of the holiday, but are expected to return strongly through the rest of the year . Cheddar and traditional cheese makers report healthy demand, as end-of-year holiday orders are underway . Cheese market prices are confound-ing Midwestern cheese contacts . Throughout last week and early this week, the structural mainstay of block prices hovering over barrels was inverted . Contacts typically view this as an indication of market instability . Currently, as block prices have maintained, barrel prices have rapidly descended, adding to bearish cheese market undertones .

Wholesale prices delivered, dollars per/lb: Process 5# Loaf: $1.7575 - $2.1175Brick/Muens 5# Loaf: $1.9700 - $2.3950 Cheddar 40# Block: $1.6975 - $2.0925Monterey Jack 10#: $1.9450 - $2.1500 Blue 5# Loaf: $2.2375 - $3.2250Mozzarella 5-6# (LMPS): $1.7700 - $2.7100 Grade A Swiss 6-9#: $2.8050 - $2.9225

WEST - NOV . 29: Due to higher milk availability in the West, more cheese is being produced . Overall barrels and blocks supplies are abundant, and inventories continue to increase . Domestic cheese sales for 40-pound blocks are solid . However, requests for barrels and 640s have remained slightly lower . Retail demand for cheese is doing well as some stores are packing for the end of the year holiday needs . However, a number of end users have their needs met and are not looking to purchase any additional cheese soon . On the other hand, some reports suggest that spot prices for cheese are dropping, resulting in more interest from the international market . Cheese sales and prices in the coming weeks will depend on how much stocks processors can afford to hold going into the New Year and how much buyers want or need to pay .

Wholesale prices delivered, dollars per/lb: Process 5# Loaf: $1.7450 - $2.0025Cheddar 40# Block: $1.7300 - $2.1750 Cheddar 10# Cuts: $1.9100 - $2.1300Monterey Jack 10#: $1.9200 - $2.0800 Grade A Swiss 6-9#: $2.8650 - $3.2950

FOREIGN -TYPE CHEESE - NOV . 29: Prices for European Union (EU) cheese have been weaker in October and November . The weaker price trend contributed to a moderately reticent purchasing behavior as some buyers are waiting to see if prices will further decrease . Nonetheless, the domestic cheese market remains stable . Current cheese supplies are at typical levels for the season and are adequate to meet end users/buyers’ needs . After months of increase, EU cheese exports declined in September due to higher cheese prices, stronger euro, and more cheese offers from the US . Currently, export demand is on the rise again . Japan, South Korea, Mexico and Australia have enlarged their exports this year, while Russia demand shrink by 3 percent in the first eight months of 2017 .

Selling prices, delivered, dollars per/lb: Imported DomesticBlue: $2.6400 - 5.2300 $2.1150 - 3.6025Gorgonzola: $3.6900 - 5.7400 $2.6225 - 3.3400Parmesan (Italy): 0 $3.5050 - 5.5950Romano (Cows Milk): 0 $3.3050 - 5.4550Sardo Romano (Argentine): $2.8500 - 4.7800 0Reggianito (Argentine): $3.2900 - 4.7800 0Jarlsberg (Brand): $2.9500 - 6.4500 0Swiss Cuts Switzerland: 0 $3.3250- 3.6475Swiss Cuts Finnish: $2.6700- 2.9300 0

NATIONAL - NOV . 22: Cream for but-ter production is readily accessible . Butter makers are actively producing butter . How-ever, some manufacturers have slowed down churning and other have halted but-ter production until after the holiday season . Although holiday demand is drawing down inventories, supplies remain sufficient . Bulk butter prices range from 3 cents under to 8 cents over the CME average . The market undertone is mixed . Some buyers/sellers anticipate butter prices will decrease further, although other contacts report that current market prices are remaining healthy and well over last year’s averages .

NORTHEAST - NOV . 29: Some eastern balancing operations’ butter production is strong . Cream is fairly available for churning . Butter inventories are in balance with end users’ demands . However, a few plant man-agers anticipate inventories will be higher at the year’s end . The current bulk butter prices are reported 5-8 cents over the market of the CME Group, with various time periods and averages used . The market undertone is steady to weak as prices are lower com-pared to past weeks . Tuesday’s CME Group cash trading saw Grade AA butter close at $2 .1850, down $0 .0275 from a week ago .

CENTRAL - NOV . 29: Butter produc-tion is fully active . Plant managers are work-ing through accessible cream and preparing

to fill end-of-year orders . Cream multiples saw the low 1 .10s last week . This week, multiples into butter churns have been reported from 1 .18 f .o .b . Bulk butter has seen a little more interest of late . Bulk butter prices remained at 3 cents under to 7 cents over the CME average . The butter market tone is somewhat bearish . Some contacts suggest that market prices may continue to ebb slowly, but they are doubtful regard-ing a market destabilizing descent . The NASS Cold Storage report noted US butter stocks as of Oct . 31, 2017 were 219 .8 mil-lion pounds, down 4 percent from last year and down 14 percent from last month . Bulk stocks in all warehouses were 228 .2 million pounds last year at this time .

WEST - NOV . 29: Western butter makers report plenty of cream available to meet the remaining butter needs for 2017 . The linger-ing orders are providing manufacturers with a consistent need to produce both print and bulk butter . However in some cases, proces-sors have enough butter in inventory to fill orders and are choosing to slow the churns until after the first of the year . While demand has been relatively steady, a few processors note that interest seems to be waning for the remainder of the year . Some buyers have met their needs for December and are focus-ing their attention to quoted prices for 2018 . Bulk butter pricing in the West this week is 2 cents to 6 cents above the market .

ORGANIC DAIRY - RETAIL OVERVIEW

Following the shortened workweek, most retail advertisement numbers climbed . Some anoma-lies, such as half-gallon egg nog saw ad numbers decrease 83 percent, and cream cheese ad numbers decreased 9 percent . Total conventional dairy advertisements increased 73 percent, while organic ad numbers shot up exponentially . Butter ad numbers increased, both in the organic and conventional sectors . The weighted advertised price for organic butter is $5 .42 compared with $3 .24 for conventional, a $2 .18 organic price premium . Total conventional cheese advertisements increased 57 percent from last week . The US advertised price for conventional 8-ounce cheese blocks is $2 .32, while organic 8-ounce cheese blocks averaged $3 .79, an organic premium of $1 .47 . Notably, 2-pound cheese blocks had a US average price of $3 .45 this week, compared to a weighted average price of $6 .92 at this time last year . The US advertised price for conventional 8-ounce cheese shreds averaged $2 .16 . The weighted advertised price for organic 8-ounce cheese shreds was $3 .79, representing an organic premium of $1 .63 . The average sale price for conventional 4-6 ounce Greek yogurt is $ .95, while organic 4-6 ounce Greek yogurt averaged $1 .25, representing a $ .30 organic premium .

National Weighted Retail Avg Price: Butter 1 lb: $5.42Cheese 8 oz block: $3.79Cheese 8 oz shred: $3.79Cheese 1 lb block: $5.99Cream Cheese 8 oz: $2.50

Cottage Cheese 16 oz: $3.99Greek Yogurt 4-6 oz: $1.25Greek Yogurt 32 oz: $3.99Yogurt 4-6 oz: $1.52Yogurt 32 oz: $2.99Ice Cream 48-64 oz: $4.55

RETAIL PRICES - CONVENTIONAL DAIRY - DECEMBER 1Commodity

Butter 1#

Cheese 8 oz block

Cheese 1# block

Cheese 2# block

Cheese 8 oz shred

Cheese 1# shred

Cottage Cheese

Cream Cheese

Ice Cream 48-64 oz

Egg Nog quart

Egg Nog ½ gallon

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 .24 3 .49 3 .47 2 .48 2.58 3 .77 2 .97

2 .32 2 .35 2 .62 1.55 1.99 1 .99 1 .99

3 .41 3 .66 3 .11 2 .49 3 .95 2 .49 2 .99

3 .45 NA 2 .49 2 .99 3 .80 NA 4 .99

2 .16 2 .36 2 .30 1 .83 1 .96 2 .19 1 .99

3.17 3 .49 3 .48 3 .00 3 .24 3 .03 2 .99

1 .92 2 .38 1 .54 1 .67 NA 2 .49 1 .25

1 .61 1 .63 1 .58 1 .71 1 .52 1 .56 1 .25

2.81 2 .70 3 .53 3 .51 3 .13 3 .44 3 .04

2 .63 2 .49 NA 2 .99 2 .50 NA NA

3 .60 NA 2 .99 3 .99 NA NA NA

2 .33 2 .50 2 .50 2 .50 1 .99 NA .99

2 .34 NA NA 2 .03 2 .51 2 .69 1 .77

1 .66 1.66 1 .55 1.69 2 .06 1 .95 1 .34

.95 .99 1 .00 .95 .89 .93 .94

4.21 4 .48 5 .49 3 .99 4 .99 NA 3 .18

.46 .49 .44 .43 .43 .50 .54

2 .39 2 .69 NA 2 .00 2 .59 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

NONFAT DRY MILK - NOVEMBER 30NDM - CENTRAL: Low/medium heat nonfat dry milk (NDM) prices in the Cen-tral region are steady on the range, but decreased on the bottom of the mostly price series . Low/medium heat NDM production is beginning to increase . Low/medium heat NDM inventories are available . The NDM market tone is shaky, although contacts point out that futures have recently experi-enced an upswing, possibly related to fur-thered export opportunities into Southeast Asia . High heat NDM prices declined on the top of the range . Spot activity of high heat NDM remained steady during its busy season, although some producers point out that interest is a bit slower this week . High heat NDM inventories are available .

NDM - EAST: Low/medium heat NDM prices, in the East, remained steady on the range, but fell $ .01 on the bottom of the mostly price series . Production of NDM is continuing to increase, as holiday drying time is near to or at completion . Spot mar-ket activity was fairly busy in the eastern region this week . Inventories are available . Nationwide, the low/medium heat NDM

market tone is unstable . The high heat NDM market price shifted lower on the top of the range . Spot offerings were some-what limited, although producers point out that inventories are sufficient for near term movements . The high heat NDM mar-ket tone mirrors that of low/medium heat NDM, and is short of stable .

NDM - WEST: Compared to a few weeks ago, the NDM market undertone is weaker as supply is above demand . In general, the current lower prices are stimulating sales activity in the spot mar-ket . However, some buyers/end users are pushing back their purchases antici-pating lower indices for the upcoming Q1 2008 variable contracts . At this point, the NDM demand from bakers is active as the year-end holidays are approaching . Low/medium heat NDM production was very heavy during the past holiday weekend as most balancing plants were running at full capacity . This week, NDM output is stable while inventories still building and are readily available at several process-ing plants .

WHOLESALE BUTTER MARKETS


Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec‘07 1.3180 1.3408 1.3823 1.4628 1.7211 2.0100 1.9138 1.9554 1.9929 1.8957 2.0926 2.0083‘08 1.8257 2.0023 1.8234 1.8826 2.0976 2.0350 1.9673 1.7398 1.8762 1.7963 1.7099 1.5132‘09 1.0833 1.2171 1.2455 1.2045 1.1394 1.1353 1.1516 1.3471 1.3294 1.4709 1.5788 1.6503‘10 1.4536 1.4526 1.2976 1.4182 1.4420 1.3961 1.5549 1.6367 1.7374 1.7246 1.4619 1.3807‘11 1.5140 1.9064 1.8125 1.6036 1.6858 2.0995 2.1150 1.9725 1.7561 1.7231 1.8716 1.6170‘12 1.5546 1.4793 1.5193 1.5039 1.5234 1.6313 1.6855 1.8262 1.9245 2.0757 1.9073 1.6619‘13 1.6965 1.6420 1.6240 1.8225 1.8052 1.7140 1.7074 1.7492 1.7956 1.8236 1.8478 1.9431‘14 2.2227 2.1945 2.3554 2.2439 2.0155 2.0237 1.9870 2.1820 2.3499 2.1932 1.9513 1.5938‘15 1.5218 1.5382 $1.5549 1.5890 1.6308 1.7052 1.6659 1.7111 1.6605 1.6674 1.6175 1.4616‘16 1.4757 1.4744 1.4877 1.4194 1.3174 1.5005 1.6613 1.7826 1.6224 1.6035 1.8775 1.7335‘17 1.6866 1.6199 1.4342 1.4970 1.6264 1.6022 1.6586 1.6852 1.6370 1.7305 1.6590

HISTORICAL MONTHLY AVERAGE BLOCK PRICES

CME CASH PRICES - NOV. 27 - DEC. 1, 2017Visit www.cheesereporter.com for daily prices

CHEDDAR CHEDDAR AA GRADE A 500-LB. BARRELS 40-LB. BLOCKS BUTTER NFDM

MONDAY $1.5900 $1.5500 $2.2075 $0.7200 November 27 (-8½) (-6) (-1½) (+¾)

TUESDAY $1.5400 $1.6100 $2.1850 $0.7300 November 28 (-5) (+6) (-2¼) (+1)

WEDNESDAY $1.5100 $1.6000 $2.2050 $0.7050 November 29 (-3) (-1) (+2) (-2½)

THURSDAY $1.5100 $1.6000 $2.2125 $0.7150 November 30 (NC) (NC) (+¾) (+1)

FRIDAY $1.5350 $1.5625 $2.2150 $0.7200December 1 (+2½) (-3¾) (+¼) (+½)

Week’s AVG $1.5370 $1.5845 $2.2050 $0.7180 Change (-0.1263) (-0.0205) (-0.0100) (+0.0072)

Last Week’s $1.6633 $1.6050 $2.2150 $0.7108AVG

2016 AVG $1.6400 $1.7950 $2.1615 $0.9590Same Week

MARKET OPINION - CHEESE REPORTERCheese Comment: On Monday, 1 car of blocks was sold on an offer at $1.5500, which lowered the price. Two cars of blocks were sold Tuesday, both on bids, the last at $1.6100, which raised the price. Seven cars of blocks were sold Wednesday, the last on a bid at $1.6000, which set the price. A total of 11 cars of blocks were sold Thursday, the last on an offer at $1.6000, which left the price unchanged. On Friday, 1 car of blocks was sold on an offer at $1.5625, which lowered the price.The barrel price dropped Monday on a bid-based sale of 1 car at $1.5900, fell Tuesday on an offer-based sale of 1 car at $1.5400, declined Wednesday on an offer-based sale of 1 car at $1.5100, then rose Friday on a bid-based sale of 1 car at $1.5350.

Butter Comment: The butter price fell Monday on an offer-based sale of 1 car at $2.2075, dropped Tuesday on an offer-based sale of 1 car at $2.1850, increased Wednesday on an unfilled bid for 1 car at $2.2050, rose Thursday on sales of 2 cars at $2.2125, and increased Friday on a bid-based sale of 1 car at $2.2150.

NDM Comment: The NDM price increased Monday on an offer-based sale of 1 car at 72.0 cents, rose Tuesday on offer-based sales of 3 cars at 73.0 cents, dropped Wednesday on offer-based sales of 4 cars at 70.5 cents, rose Thursday on an unfilled bid for 1 car at 71.5 cents, and increased Friday on sales of 2 cars at 72.0 cents.

WHEY MARKETS - NOV. 27 - DEC. 1, 2017RELEASE DATE - NOVEMBER 30, 2017

Animal Feed Whey—Central: Milk Replacer: .1800 (NC) – .2500 (NC)

Buttermilk Powder: Central & East: .8000 (NC) – .8875 (-½) West: .7400 (NC) – .8500 (NC) Mostly: .7900 (NC) – .8200 (NC)

Casein: Rennet: 2.0475 (NC) – 2.3500 (NC) Acid: $3.2100 (NC) - $3.3200 (NC)

Dry Whey—Central (Edible): Nonhygroscopic: .2500 (NC) – .3600 (NC) Mostly: .2700 (NC) – .3200 (-1) Dry Whey–West (Edible): Nonhygroscopic: .2650 (-½) – .3750 (-½) Mostly: .2900 (NC) – .3350 (-½)

Dry Whey—NE: .2900 (NC) — .3850 (-¾)

Lactose—Central and West: Edible: .1700 (-1) –.3500 (NC) Mostly: .1900 (NC) –.2800 (-1)

Nonfat Dry Milk —Central & East: Low/Medium Heat: .6800 (NC) – .8000 (NC) Mostly: .7000 (-1) –.7600 (NC) High Heat: .8550(NC) – .9500 (-3)

Nonfat Dry Milk —Western: Low/Medium Heat: .6500 (NC) – .8050 (-1¼) Mostly: .7100 (NC) –.7700 (-2) High Heat: .9000 (NC) – $.9700 (NC)

California Weighted Average NFDM: Price Total Sales November 24 $0.7468 11,359,522 November 17 $0.7656 12,107,680 Whey Protein Concentrate—Central and West: Edible 34% Protein: .6750 (NC) – .9400 (NC) Mostly: .7100 (NC) – .8250 (-1½)

Whole Milk—National: 1.2900 (NC) – 1.4500 (NC) Visit www.cheesereporter.com for dairy and historical cheese, butter, and whey prices


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Restaurant Performance Index Rose 0.2% In October; Operators More Optimistic About Future Business ConditionsWashington—The National Res-taurant Association’s Restaurant Performance Index (RPI) stood at 100.9 in October, up 0.2 percent from September, the association reported Thursday.

The RPI is constructed so that the health of the restaurant indus-try is measured in relation to a steady-state level of 100. Index values above 100 indicate that key industry indicators are in a period of expansion, while indcx values below 100 represent a period of contraction for key industry indi-cators.

The RPI consists of two com-ponents: the Current Situation Index and the Expectations Index. The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capi-tal expenditures), stood at 99.5 in October, down 0.3 percent from September.

Restaurant operators contin-ued to report choppy same-store sales results in October. Some 38

percent of operators reported a same-store sales increase between October 2016 and October 2017, essentially unchanged from Sep-tember. And 45 percent of opera-tors reported a same-store sales decline in October, up from 39 percent in September.

Restaurant operators also reported a net decline in customer traffic in October.

The Expectations Index, which measures restaurant operators’ six-month outlook for four indus-try indicators (same-store sales, employees, capital expenditures and business conditions), stood at 102.4 in October, up 0.8 percent from September.

Restaurant operators are increas-ingly optimistic that business con-ditions will improve in the coming months. Some 44 percent of opera-tors expect to have higher sales in six months (compared to the same period in the previous month), up from 33 percent in September and the highest level in almost two years. Just 14 percent of opera-tors expect their sales volume in six months to be lower than it was during the same period in the pre-vious year, while 42 percent think their sales will stay about the same.

Restaurant operators are also more bullish about the direction of the economy.

Documents

W o r l d ' s DairyI t h W S l y CHEESE REPORTER 1, 2017.pdf · Australian Inquiry Finds Bargaining Power Imbalances Between Farmers, Processors S e r v i n g t h e W o r l d ' s