2017 Domestic Dairy Product Use Fell For All But American-Type Cheese, Butter, Lactose

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CHEESE REPORTER Vol. 142, No. 35 • Friday, February 16, 2018 • Madison, Wisconsin

Despite Delay, California Federal Order Could Be In Place In A Year

a completely new hearing and a completely new process from step one, would not be implemented until late 2020 or early 2021, Vaden said.

The second option, the one chosen by USDA, was the ratifica-tion option. The agency, starting Tuesday, appointed a new officer to preside over the California fed-eral order proceedings, who does not suffer from any constitutional infirmity, have that new officer review the record in full, reach an independent determination, and if he so determines, ratify the record.

The new officer may or may not seek additional feedback from affected parties, but in either case, that final decision, once ready, will be published; assuming a successful producer vote on rati-fication, it will be implemented no later than February of 2019, Vaden indicated.

US Secretary of Agriculture Sonny Perdue “has decided to take this option, with the one- to four-month delay that it entails, to prevent California milk producers from having to potentially wait

• See CA Order Delay, p. 9

CME To Launch Dry Whey Spot Call Market On March 12Chicago—CME Group will intro-duce a new dry whey spot call (cash) market to its auction plat-form on Monday, Mar. 12, 2018.

The new dry whey spot call market follows the successful tran-sition of all CME dairy spot call markets, including cheese, butter and nonfat dry milk, to the elec-tronic CME Direct Auction Plat-form last year.

Dry whey will be the first prod-uct traded starting on Mar. 12; trading on the cash market will take place from 10:45 to 10:55 a.m. Central time. Dry whey will be fol-lowed by cheese from 11:00 a.m. to 11:10 a.m.; butter from 11:15 to 11:25 a.m.; and nonfat dry milk from 11:30 to 11:40 a.m.

Under the CME Group’s rules, the dry whey traded on its spot call market has to conform to the applicable provisions of 21 CFR 184.1979. The grade should be US Extra Grade. On the day of sale, the dry whey has to be less than 120 days old.

As with cheese, butter and non-fat dry milk, the minimum price fluctuation for the dry whey on the spot call market will be one-quarter of a cent.The first posted bid (offer) of each trading session can’t be more than one cent higher (lower) than the last market price noted for the previous session.

A spot load can only be sold on the CME spot market when, at the time of offering, the seller has doc-umented possession/ownership of a deliverable load. The delivered

• See Dry Whey Spot Call, p. 6

WCMA Wants Congress To Fix Section 199A Of New Tax Reform Law; Others Want It Extended To All FarmersMadison—Wisconsin Cheese Makers Association (WCMA) is calling on members of Congress to modify language in Section 199A of the recently approved federal tax reform legislation to ensure a stable agribusiness economy.

But others, including Mike McCloskey, a dairy farmer and a leader in Select Milk Producers, one of the country’s largest dairy cooperatives, want to expand a well-designed Section 199A ben-efit to all farmers.

Section 199A allows farmers to deduct 20 percent of their gross sales to cooperatives, but farmers selling to privately held compa-

• See Section 199A, p. 10

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Cheese Output:Percent Change of Select CheeseDecember 2017 vs. December 2016

Domestic Use Increased On Milkfat Basis, Dropped On Skim-Solids BasisWashington—While the US dairy industry benefited from higher global dairy demand last year, domestic use of dairy prod-ucts was relatively weak, USDA’s Economic Research Service (ERS) reported this week.

On a milkfat basis, domestic use increased only 0.3 percent from 2016, which ERS said was “quite remarkable” after three years of “solid growth,” particu-larly the 3.3 percent growth of 2016. On a skim-solids basis, domestic use declined by 0.7 per-cent after three years of growth.

Domestic use declined for all of the dairy products tracked by ERS except for American-type cheese, butter, and lactose.

More specifically, domestic commercial disappearance of American-type cheese last year reached 4.774 billion pounds, up 2.5 percent, or 116 million pounds, from 2016.

Domestic commercial dis-appearance of butter last year totaled 1.852 billion pounds, up 0.3 percent, or 5.3 million pounds, from 2016.

And domestic commercial dis-appearance of lactose last year totaled 314.7 million pounds, up 4 percent, or 12.1 million pounds, from 2016.

By contrast, for other-than-American cheese, domestic com-mercial disappearance last year was 7.17 billion pounds, down 0.1 percent, or 8.7 million pounds, from 2016. Domestic commercial

• See Domestic Dairy Use, p. 6

Even Without Delay, New California Order Couldn’t Be In Place Before OctoberWashington—In delaying the California federal milk marketing order rulemaking proceeding, the US Department of Agriculture (USDA) decided to advance the California order “in the fastest way possible while also making certain that it is not legally vulnerable to Constitutional challenge,” accord-ing to Stephen Vaden of USDA’s Office of the General Counsel.

Last week, USDA’s Agricultural Marketing Service (AMS) had announced a delay in the Califor-nia federal order rulemaking pro-ceeding and its intention to await a US Supreme Court decision on a related legal matter prior to pro-ceeding further with the California rulemaking.

The legal matter centers around administrative law judges (ALJs). The federal government’s position is that ALJs are “inferior officers” of the US, subject to the Appoint-ments Clause of Article II of the Constitution. At the time of the

California federal order hearing in 2015, USDA believed ALJ Jill S. Clifton to be an employee of USDA and her appointment was completed in accordance with agency procedures.

However, if the Supreme Court determines that ALJs are inferior officers of the US rather than employees, then Clifton’s original appointment as an ALJ would be brought into question, AMS noted. The Supreme Court is expected to render its decision on or before the end of its term on June 30, 2018.

USDA had two options in this case, Vaden explained Tues-day during a conference call with stakeholders. It could have cho-sen to immediately implement the California order, assuming pro-ducer ratification, and have the order implemented by no later than October of this year, but if the US Supreme Court decides against the current appointment of administrative law judges, the California milk marketing order “would likely be vacated and we would have to start all over again.”

That would mean that a new California federal order, requiring

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Jamestown, MO 65046

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Middleton, WI 53562

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“the problems being experienced with California milk pricing for-mulas are also the problems being experienced with federal order pric-ing formulas. One of those problems was noted earlier: inadequate make allowances”

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EDITORIAL COMMENT

California Federal Order Proceeding Continues To Drag OnJust when you think you’ve seen it all in the dairy industry, along comes USDA last week with the announcement that it will be delaying, for several months, its final decision on a California federal milk marketing order as it awaits a US Supreme Court deci-sion on a related legal matter.

So it now appears that the California dairy industry has little choice but to sit, and wait (some more). And the same thing applies to the entire US dairy industry, albeit to a somewhat lesser extent.

That this is happening in Feb-ruary should probably come as no surprise to those who have been following the California federal order proceeding. It was three years ago, in February 2015, when three dairy cooperatives — Cali-fornia Dairies, Inc., Dairy Farmers of America and Land O’Lakes — requested that USDA call a hear-ing to promulgate a federal order for California.

Almost exactly two years after USDA received that petition, in February 2017, the agency released a recommended decision propos-ing that a California federal order be established. Comments had to be submitted by May 15, 2017, which then seemed to set USDA up for announcing a final decision this month, give or take a month or two.

Instead, California’s dairy indus-try is stuck in limbo. On the one hand, it seems inevitable that California’s dairy producers will vote, once a final decision is finally released, to join the federal order program, especially in light of the overwhelming support that Cali-fornia dairy producers gave to the proposed Quota Implementation Plan (87.2 percent of those eligible producers who voted were in favor of the QIP).

On the other hand, California’s dairy industry remains stuck, for the time being, in the state’s long-standing milk order.

The frustration of this situation is pretty obvious, especially in light of the recent petition, submitted

by California Dairy Campaign and Western United Dairymen, seek-ing an emergency hearing to raise milk prices in the state.

As reported on our front page last week, the California Depart-ment of Food and Agriculture denied that hearing request, specif-ically citing the pending California federal order proceeding. Now that proceeding has been delayed.

While it was dairy producers who sought the emergency hear-ing in California, dairy processors also expressed dissatisfaction with current milk pricing in the state. Several cheese companies asked the CDFA to deny the hearing request, but if the agency did grant a hearing, to open that hearing up to possible changes in the Class 4b and 4a pricing formulas.

As Dairy Institute of Califor-nia pointed out, the cheese make allowance in the Class 4b pricing formula hasn’t been adjusted in 10 years, while the butter and non-fat dry milk make allowances in the Class 4a formula haven’t been adjusted in seven years.

But California manufacturing costs continue to rise; as reported on our front page two weeks ago, the average cost to manufacture Cheddar cheese in California in 2016 was a record-high 24.54 cents per pound, almost a nickel a pound higher than the current 4b make allowance of 19.88 cents a pound.

Things won’t improve much for California processors if and when California joins the federal order system. The cheese make allow-ance in the federal order Class III formula, 20.03 cents per pound, has been in effect for almost a decade now.

And, it may be recalled, USDA’s decision to set the cheese make allowance at 20.03 cents found that the CDFA 2006 survey of average cheese manufacturing costs was the best available infor-mation representing the manufac-turing cost of producing a pound of Cheddar cheese (that cost was actually 19.88 cents per pound; the 20.03 cents per pound make

allowance includes a 0.15-cent per pound marketing cost adjustment).

So now, the entire US dairy industry is effectively in limbo while USDA delays the California federal order proceeding, in at least two ways.

First, there is no doubt that California joining the federal order system will have some significant impacts on the US dairy industry as a whole. Among other things, according to USDA’s own analy-sis of its recommended decision, a California federal order will raise blend prices in some orders while lowering them in other orders, and will also boost milk production nationally.

Second, the problems being experienced with California milk pricing formulas are also the prob-lems being experienced with fed-eral order pricing formulas. One of those problems was noted ear-lier: inadequate make allowances that haven’t been adjusted (raised) for almost a decade. But make allowances are going to remain unchanged for the foreseeable future.

Another problem is the con-tinued use of the dry whey price in the Class III formula. This is impacting both California cheese makers (Farmdale Creamery, San Bernardino, CA, mentioned the “dysfunctional” whey factor that is “completely dissociated from the realities of realizable end product prices in the marketplace” when it asked the CDFA to deny the recent hearing petition) as well as cheese makers in federal orders (when USDA, three years ago this month, asked for comments in its regulatory review of federal orders, the use of the dry whey factor in the Class III formula was roundly criticized by the Wisconsin Cheese Makers Association).

Maybe the dairy industry has gotten this whole California pro-ceeding backwards. Maybe the US dairy industry should have tried to join the California system; at least then changes could be made more quickly than they are now.

CHEESE REPORTERFebruary 16, 2018 Page 3

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

Dairy CPI Rose 0.5% In Jan.; Retail Cheddar Price Up, Whole Milk Price Drops Below $3.00Washington—The Consumer Price Index (CPI) for dairy and related products was 217.897 in January (1982-84=100), up 0.5 percent from December but down 0.9 percent from January 2017, the US Bureau of Labor Statistics (BLS) reported Wednesday.

That marked the 12th consecu-tive month in which the dairy CPI was under 220. Since the begin-ning of 2016, the dairy CPI has only been above 220 twice: in Jan-uary 2016, when it was 220.869; and in February 2017, when it was 220.552.

CPI for all items was 247.867, up 0.5 percent from December and 2.1 percent higher than in Janu-ary 2017. January’s CPI for food at home was 239.828, up 0.5 per-cent from December and 1 percent higher than in January 2017.

January’s CPI for cheese and related products was 230.754, up 1 percent from December and 1.1 percent higher than in Janu-ary 2017. That’s the highest level for the cheese CPI since February 2016, when it was 231.437.

The average retail price for a pound of natural Cheddar cheese in January was $5.021, up more than seven cents from December and up almost nine cents from January 2017. January marked the fourth time in five months that the average retail Cheddar price was above $5.00 per pound.

Average retail Cheddar prices by region in January, with com-parisons to a month earlier and to a year earlier, were as follows:

Northeast: $5.891 per pound, up $1.03 a pound from December and up almost $1.08 a pound from January 2017.

Midwest: $5.375 per pound, up almost three cents from December and up more than 18 cents from January 2017.

South: $5.061 per pound, down almost 20 cents from December but up slightly from January 2017.

West: $4.513 per pound, up almost two cents from December but down almost 18 cents from January 2017.

The average price for a pound of American processed cheese in Jan-uary was $4.015, down more than 11 cents from December and down almost 31 cents from January 2017.

Whole Milk Price DeclinesJanuary’s CPI for whole milk was 197.963, down 0.9 percent from December and 4.4 percent lower than in January 2017. That marked the sixth consecutive month in which the whole milk CPI was under 200.

January’s CPI for “milk” was 137.9 (December 1997=100), down 1.2 percent from December and 3.4 percent lower than in Jan-uary 2017. January’s CPI for milk

other than whole was 141.672, down 1.4 percent from December and down 2.4 percent from Janu-ary 2017.

The average retail price for a gallon of whole milk in January was $2.961, down more than 19 cents from December and down almost 36 cents from January 2017.

Average retail whole milk prices by region in January, with com-parisons to a month earlier and to a year earlier, were as follows:

Northeast: $3.404 per gallon, down 20 cents from December and down almost 21 cents from January 2017.

Midwest: $2.093 per gallon, down more than 30 cents from

December and down almost 43 cents from January 2017.

South: $3.352 per gallon, down almost 12 cents from December and down more than 22 cents from January 2017.

West: $2.968 per gallon, down more than seven cents from December and down more than 45 cents from January 2017.

January’s CPI for butter was 246.748, up 3.6 percent from December and 4.4 percent higher than in January 2017. The butter CPI has now been above 240 in six of the last seven months; the exception was December 2017, when it was 238.23.

January’s CPI for ice cream and related products was 225.711, up 2 percent from December and 0.4 percent higher than in January 2017.

The average price for a half-gal-lon of regular ice cream in January was $4.786, up almost three cents from December but down almost five cents from January 2017.

January’s CPI for other dairy and related products was 146.395 (December 1997=100), up 0.8 per-cent from December but down 1.4 percent from January 2017.

08 09 10 11 12 13 14 15 16 17 18$2.50

$2.75

$3.00

$3.25

$3.50

$3.75

$4.00

Avg. Retail Whole MilkPrice January 2008 - 2017Source: US Bureau of Labor Statistics

CHEESE REPORTERPage 4 February 16, 2018

from our archives

50 YEARS AGOFeb. 16, 1968: East Lansing, MI—To keep processed foods free from contamination by air-borne bacteria, a Michigan State University scientist is borrowing ideas from the space program, the drug industry and some of the nation’s most modern hos-pitals. “These modern air filtra-tion techniques are necessary to extend the shelf life and improve the quality of many dairy prod-ucts,” said food scientist Dennis Heldman.

Washington—The FDA has published an order amending the standard of identity for Gor-gonzola cheese to require the addition of spores of the mold Penicillium roquefroti, rather than Penicillium glaucum, to the mixed curds and whey that are placed in forms during cheese-making.

25 YEARS AGOFeb. 19, 1993: Green Bay, WI—Mike Brennenstuhl of Land O’Lakes, Denmark, WI, was named US Champion Cheese Maker this week at the seventh biennial US Champion-ship Cheese Contest. Brennen-stuhl’s Cheddar block earned a score of 99.25 in the Cheddar category.

Madison—The Cheese Reporter Publishing Co. will be moving its office from Madison’s west side to the city’s east city at the end of the month. Cheese Reporter is now in its 117th year of publishing.

10 YEARS AGOFeb. 15, 2008: Washignton—The US Patent Office granted a patent for an invention relating to a process for manufacturing cheese products and other dairy products in which lactobionic acid is added, or generated in situ, in combination with a dairy component in the course of the process. The patent was assigned to Kraft Foods.

Central Point, OR—After almost three years of collaboration with local, state and national authori-ties, Rogue Creamery here has become the first US cheese com-pany to earn necessary accredita-tions and certifications to export its raw milk cheeses to the EU. It will be shipping its Rogue River Blue to London’s Neal’s Yard Dairy, and six Blue styles to Whole Foods Market, also in London.

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Chobani Marks 10-Year Anniversary With Free Yogurt Through March 4Norwich, NY—Chobani kicked off a new campaign Monday to cel-ebrate its 10th anniversary, offer-ing US consumers a free cup of yogurt through Sunday, March 4.

To receive a free cup, consumers need to print out a coupon at Cho-bani.com/freeyogurt and visit any participating retail store during the three-week offer period.

The coupon can be redeemed toward any single item of Chobani 5.3-ounce Greek Yogurt, Flip 5.3-ounce yogurt snacks, 10-ounce drinks, or a Smooth two-pack.

No purchase is necessary to receive the free products, but quan-tities are limited. The offer is also void in New Jersey and Louisiana.

This effort is part of the most ambitious campaign Chobani has

ever created. The campaign will run across broadcast television, online video, online display, media banners, bespoke influencer care packages, a digital activation in New York’s Grand Central Termi-nal, and radio spots.

Specifically, Chobani will debut a series of new television ads featur-ing original animation and music designed to evoke the goodness, simplicity, and magic of yogurt.

On Monday, Chobani unveiled a one-day, multi-sensory, socially shareable experience at Grand Central Terminal. Attendees were invited to travel through an inter-active installation in Vanderbilt Hall, in which they “plant” vir-tual seeds that bloom into a digital fruit-tree canopy overhead.

Each seed variety corresponds to a Chobani SKU, and for every virtual seed “planted,” Chobani donated a case of yogurt to No Kid

Hungry – a campaign dedicated to ending childhood hunger in America.

For the estimated 30 million Amazon Echo users, Chobani built a special Alexa skill/command enabling them to receive a coupon to use on their Amazon Fresh and Prime Now platforms. A custom online video prompting users to make the command will also run on the Amazon platform.

Over the last 10 years, Chobani has grown from five employees to 2,000, becoming the best-selling Greek Yogurt brand in the US and second-largest yogurt manufac-turer overall.

“What began 10 years ago in a small factory in upstate New York has grown into something so much bigger,” said Chobani CEO and founder Hamdi Ulukaya. Today, Chobani has yogurt plants in both New York and Idaho.

Agropur, La Caisse Create $40 Million Joint Investment Platform For Dairy BusinessesMontreal, Quebec—Agropur Cooperative and Caisse de depot et placement du Quebec announced, in the context of Agropur’s annual general meeting here this week, that they will be setting up a new joint investment platform for busi-nesses in the dairy industry.

The $40 million platform will be funded by the two partners on a 50/50 basis and invest in inno-vative businesses specializing in dairy-related products and tech-nologies.

The focus will be on growing companies with high potential for solid financial performance, which are led by a solid management team and who have demonstrated that innovation is a core element of their business model.

This opportunity will enable la Caisse to make the most of Agro-pur’s extensive operational knowl-edge of the agri-food sector, and Agropur to tap into la Caisse’s financial expertise in supporting small and medium-sized enter-prises.

“Agropur is committed to leading the way in innovation. Through our forward-thinking efforts, we aim to anticipate the needs of our customers and con-sumers and create the dairy prod-ucts of tomorrow,” said Robert Coallier, Agropur’s CEO.

“With this new platform, we are targeting innovation-oriented businesses that will help bring new vigor to the dairy industry. We are happy to partner with la Caisse on this initiative, which is the only one of its kind in North America,” Coallier added.

“La Caisse is looking to play a role in transforming businesses operating in traditional industries

by supporting those at the fore-front of innovation. This platform will enable companies serving the agri-food sector, a key driver of the Quebec economy, to obtain the funding necessary to stay at the cutting edge,” said Christian Dube, la Caisse’s executive vice president, Quebec.

“We are pleased to invest alongside Agropur, a major indus-try player that has successfully demonstrated its expertise in the field over the years,” Dube con-tinued.

Caisse de depot et placement du Quebec is a long-term institu-tional investor that manages funds primarily for public and parapublic pension and insurance plans. As of June 30, 2017, it held $286.5 bil-lion in net assets.

Agropur Cooperative, founded in 1938, had sales of $6.4 billion in 2017. It processes more than 6.1 billion liters of milk per year at its 39 plants across North America.

CHEESE REPORTERFebruary 16, 2018 Page 5

For more information, circle #3 on the Reader Response Card on p. 14

FDA Releases 2017 Edition Of Food Code, For Food Offered At Retail And In FoodserviceWashington—The US Food and Drug Administration (FDA) on Monday announced the release of the 2017 edition of the FDA Food Code, a model regulation that provides industry and government with science-based guidance and manageable provisions for reduc-ing the known risks of foodborne illness.

The Food Code is a key compo-nent of the federal public-health focused framework for maintain-ing a safe food supply. It represents FDA’s best advice for a uniform system of provisions that address the safety and protection of food offered at retail and in foodser-vice, and has been widely adopted by state, local, tribal and territo-rial regulatory agencies that regu-late restaurants, retail food stores, vending operations and foodser-vice operations.

Epidemiological outbreak data repeatedly identify five major risk factors related to employee behav-iors and preparation practices in retail and foodservice establish-ments as contributing to foodborne illness: improper holding tempera-tures; inadequate cooking, such as undercooking raw shell eggs; con-taminated equipment; food from unsafe sources; and poor personal hygiene.

The Food Code addresses con-trols for risk factors and further establishes five key public health interventions to protect con-sumer health. Specifically, these interventions are: demonstration of knowledge, employee health controls, controlling hands as a vehicle of contamination, time and temperature parameters for controlling pathogens, and the consumer advisory.

The model Food Code is neither federal law nor federal regulation and is not preemptive. Rather, it represents FDA’s best advice for a uniform system of regulation to ensure that food at retail is safe and properly protected and presented. The model Food Code provisions are designed to be consistent with federal food laws and regulations, and are written for ease of legal adoption at all levels of govern-ment.

Model codes provide a guide for use in establishing what is required, the Food Code noted. They are useful to business in that they pro-vide accepted standards that can be applied in training and quality assurance programs.

The model Food Code provides guidance on food safety, sanita-tion, and fair dealing that can be uniformly adopted for the retail segment of the food industry. The document is the cumulative result of the efforts and recommendations of many contributing individuals, agencies, and organizations with

years of experience using earlier model code editions.

Revisions contained in the new edition of the FDA Food Code reflect changes, additions, dele-tions, and format modifications listed in the supplement to the 2013 Food Code and recommen-dations developed during the 2016 biennial meeting of the Confer-ence for Food Protection.

The revisions also reflect input provided by those who have been intimately involved with studying, teaching, and using the earlier edi-tions.

Most of these enhancements involve added clarification or new information; some reflect evolving regulatory policy contained in new or revised federal regulations.

The needed clarifications and missing code provisions were iden-tified by FDA and others during standardization and certification activities, state training team courses, regional food proection seminars, the deliberations of food equipment standards organiza-tions, and the verbal and written requests for clarification received by FDA field and headquarters components.

Changes in provisions related to federal laws and regulations admin-istered by other federal agencies, such as USDA, were jointly devel-oped with those agencies.

General enhancements included Code include:

—Added and improved defini-tions that are more precise and more consistent with terminology and definitions found in related laws and regulations;

—Modified provisions to make them more consistent with national requirements and stan-dards administered by other federal agencies and international bodies; more flexible without compromis-ing public health; and more inter-nally consistent with other Food Code provisions;

—Clarified other provisions regarding their intent, thereby reducing confusion and the poten-tial for inconsistent application;

—Improved user aids contained in the annexes, such as added ref-erences and updated public health reasons, model forms, guides, and lists; and

—Expanded the index with additional terms to assist a broader base of users in finding topics of interest.

The 2017 FDA Food Code is available on the FDA website, at www.fda.gov/FoodCode.

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CHEESE REPORTERPage 6 February 16, 2018

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For more information, circle #4 on the Reader Response Card on p. 14

Dry Whey Spot Call(Continued from p. 1)

carlot may vary betweeen 41,000 and 45,000 pounds in net weight. Payment must be made on the basis of the exact net weight delivered.

Delivery may be made only from approved plants or approved ware-houses within the 48 contiguous states. Par delivery of dry whey must be made from approved ware-houses or plants in Chicago.

Deliveries made from approved warehouses or plants outside of Chicago will be subject to a freight allowance determined by the CME as follows: up to 400 miles outside Chicago with a discount of 1.25 cents per pound; between 400 and 800 miles outside Chicago with a discount of 2.5 cents per pound; between 800 and 1,200 miles out-side of Chicago with a discount of 3.25 cents per mile; between 1,200 and 1,600 miles outside Chicago with a discount of 4.0 cents per pound; and beyond 1,600 miles outside Chicago with a discount of 5.5 cents per pound.

The buyer will be required to pick up the dry whey no later than six business days after the date of sale, unless an inspection is called for by the buyer or seller, in which case the buyer will receive an addi-tional 16 calendar days for pick up.

CME Group has been offering cash-settled dry whey futures and options contracts since November of 1998. Open interest on the dry whey futures contract is currently around 3,900 contracts.

Dry whey prices have been used in the federal milk market-ing order program’s Class III price formula since 2000, when federal order reforms were implemented. The Class III price formula uses dry whey prices as reported weekly in the National Dairy Products Sales Report published by USDA’s Agri-cultural Marketing Service.

California has been using a dry whey factor in its Class 4b (chee-semilk) pricing formula since 2003. For the Class 4b formula, the Cali-fornia Department of Food and Agriculture (CDFA) uses the price for dry skim whey (specifically, the dry whey-West mostly price) as reported by USDA’s Dairy Market News.

US production of dry whey totaled 1.034 billion pounds last year, up 8.3 percent from 2016, according to USDA’s National Agricultural Statistics Service (NASS).

Also according to NASS, there were 30 plants producing dry whey, human, in the US in 2016. For USDA’s National Dairy Products Sales Report, there are currently 18 plants reporting dry whey prices every week.

For more information about the CME’s dairy spot call markets, visit www.cmegroup.com/trading/agricul-tural/dairy.html.

Date Labels On Milk, Other Foods Contribute To Food Waste, Ohio State Researchers SayColumbus, OH—Scientists in Ohio State University’s College of Food, Agricultural, and Environ-mental Sciences (CFAES) say that arbitrary date labels on food con-tribute to significant food waste because the date labels serve only as an indicator of shelf life, which relates more to food quality than safety.

Brian Roe, a CFAES profes-sor of agricultural economics, co-authored a new study examining consumer behavior regarding date labeling on milk containers. The

goal of the research is to help con-sumers reduce food waste through improved food labeling systems and consumer education.

The study, which will appear in the June 2018 edition of Food Quality and Prefererence Journal, surveyed 88 consumers who were asked to smell half-gallon jugs of milk that were 15, 25, 30 and 40 days past the date they were bot-tled.

Some milk samples were dated and some were not dated.

The study found that 64 percent of respondents said they would throw the milk out that had a date label, while only 45.8 percent of respondents said they would throw the same milk out if they didn’t know the date label of the milk.

“Date labeling doesn’t tell you when a food will spoil,” said Roe, who also leads the Ohio State Food Waste Collaborative, a col-lection of researchers, practitioners and students working together to promote the reduction and redirec-tion of food waste.

“Consumers often view dates as if they indicated health or safety, but those dates are really just about the quality of a product determined by manufacturers,” Roe noted.

The study focused on milk because it is one of the most wasted food products in the US, represent-ing 12 percent of consumer food waste by weight, Roe said. And past research has suggested that the date label is a critical reason why milk is discarded.

Domestic Dairy Use(Continued from p. 1)

disappearance of nonfat dry milk and skim milk powder in 2017 totaled 920.2 million pounds, down 6.7 percent, or 65.7 million pounds, from 2016.

Among the whey products tracked by ERS, domestic commer-cial disappearance of dry whey last year totaled 530 million pounds, down 1.7 percent, or 9.2 million pounds, from 2016; and domes-tic disappearance of whey protein concentrate totaled 212.2 million pounds, down 7 percent, or 15.9 million pounds, from 2016.

While domestic use declined for many dairy products last year, higher global demand and US price competitiveness translated into higher US exports, ERS noted. Exports of butterfat prod-ucts, whey products, cheese, and nonfat dry milk/skim milk powder increased from 2016 to 2017 (for more details, please see US Dairy

Exports Rose 15% In 2017..., on page 1 of our Feb. 9, 2018 issue by scanning the QR Code on p. 2 of this issue).

Overall, US dairy exports increased from 8.4 billion pounds to 9.3 billion pounds (10.7 per-cent) on a milkfat milk-equivalent basis and from 39.0 billion pounds to 40.8 billion pounds (4.6 per-cent) on a skim-solids milk-equiv-alent basis, ERS noted.

While dairy export quantities went up from 2016 to 2017, import quantities went down, from 7.0 bil-lion pounds to 6.0 billion pounds on a milkfat basis (down 14.3 per-cent) and from 6.5 billion pounds to 6.1 billion pounds on a skim-solids basis (down 6.2 percent).

Meanwhile, USDA estimates that, during 2017, 48.1 billion pounds of packaged fluid milk products were sold in the US, down 2.2 percent from 2016.

Those fluid milk sales included 45.484 billion pounds of conven-tional fluid milk products, down

2.3 percent from 2016; and 2.577 billion pounds of organic fluid milk products, up slightly from 2016.

Within the conventional fluid milk products category last year, compared to 2016, sales increased 2.2 percent for whole milk, 7.4 per-cent for flavored whole milk, and 1 percent for flavored fat-reduced milk; and declined 3 percent for reduced fat milk, 6.7 percent for lowfat milk, 11.9 percent for fat-free milk, 1.8 percent for butter-milk, and 1.4 percent for other fluid milk products.

Within the organic fluid milk products category last year, com-pared to 2016, sales increased 6.2 percent for whole milk and 26.6 percent for flavored fat-reduced milk; and declined 0.4 percent for reduced fat milk, 8.8 percent for lowfat milk, 13.6 percent for fat-free milk, and 24.6 percent for other fluid milk products.

ERS will release detailed statis-tics on beverage milk sales later this year.

CHEESE REPORTERFebruary 16, 2018 Page 7

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No Milk Samples Had Pesticide Residues Above Established Tolerances In USDA’s PDPWashington—The Pesticide Data Program (PDP) analyzed 708 milk samples in 2016 and found just one pesticide in the samples, the insecticide Flubendiamide, which was detected in 18 samples ranging from 0.003 to 0.006 parts per mil-lion (ppm) where the established tolerance was 0.15 ppm, accord-ing to the PDP’s 26th annual sum-mary, which was released earlier this month.

In 1991, USDA’s Agricultural Marketing Service (AMS) was charged with designing and imple-menting the Pesticide Data Pro-gram to collect data on pesticide residues in food. The PDP tests a variety of domestic and imported foods, with a strong focus on foods that are consumed by infants and children.

Before allowing a pesticide to be used on a food commodity, the US Environmental Protection Agency (EPA) sets limits on how much of a pesticide may be used on food during growing, processing, and storage, and how much can remain on the food that reaches the con-sumer. Government inspectors monitor food in interstate com-merce to ensure that these limits are not exceeded.

AMS’s Monitoring Programs Division (MPD) is responsible for the administration, planning, and coordination of day-to-day PDP operations. MPD meets regularly with EPA and other government agencies to establish program pri-orities and direction.

In 2016, sampling and/or testing program operations were carried out with the support of 10 states: California, Colorado, Florida, Maryland, Michigan, New York, North Carolina, Ohio, Texas, and Washington. PDP commod-ity sampling is based on a rigorous statistical design that ensures the data re reliable for use in expo-sure assessments and can be used to draw various conclusions about the US food supply.

Commodities chosen for inclu-sion in the PDP are based on EPA data needs. Foods selected for test-ing are high-consumption items with a strong focus on foods that are highly consumed by infants and children.

Each fresh commodity is sam-pled and tested for two years in order to capture annual and sea-sonal variability. High-consump-tion items are rotated in and out of the program every five years.

PDP collects a minimum of 600 samples per commodity per year in order to provide an accurate sta-tistical representation for a given commodity.

Fresh and processed fruit and vegetables accounted for 90.3 per-cent of the total 10,365 samples collected in 2016. Other samples

collected included milk (6.8 per-cent) and eggs (2.8 percent).

In 2016, fruit, vegetables, egg, and milk samples were randomly collected by trained state inspec-tors at terminal markets and large chain store distribution centers throughout the US. Surrogate or “proxy” sites (retail markets) are used to collect these samples when the commodity of interest is unavailable at a terminal market or distribution center.

In 2016, 23 percent of fruit, vegetable, egg, and milk samples were collected at proxy sites. The commodities most often collected at these facilities were milk, eggs, frozen cherries, frozen carnberries, canned olives, canned tomatoes, and apple sauce.

Because PDP data are mainly used for risk assessments, PDP laboratory methods are geared to detect the lowest possible levels of pesticide residues, even when those levels are well below the tol-erances established by the EPA.

In 2016, over 99 percent of the samples tested has residues well below the tolerances established by the EPA, with 23 percent hav-ing no detectable pesticide residue. Residues exceeding the tolerance were detected in 0.46 percent (48 samples) of the total tested.

PDP collected and analyzed 708 milk samples in 2016. One-quart samples were collected from routine PDP sampling sites that included major chain-store distri-bution centers, terminal markets, and proxy sites. Some 64.5 percent of the samples were collected from proxy sites.

All of the milk samples were domestic, and only whole pasteur-ized milk samples were collected. Reduced fat and lowfat milk, flavored milk (chocolate, straw-berry), ultra-high-temperature (UHT) milk and any milk other than cow’s milk were excluded.

The California Department of Food and Agriculture (CDFA) laboratory tested the 708 milk sam-ples. A total of 425 parent pesti-cides, metabolites, degradates and/or isomers, plus 19 environmental contaminants, were screened in the milk samples.

PDP is a voluntary program and is not designed for enforcement of tolerances. However, PDP informs the US Food and Drug Adminis-tration (FDA) and EPA if residues detected exceed the EPA toler-ance or have no EPA tolerance established.

CHEESE REPORTERPage 8 February 16, 2018

For more information, visit www.weighpack.com

PERSONNELPAMELA BAILEY, presi-dent and CEO of the Grocery Manufacturers Association (GMA) for almost 10 years, has announced her retirement. Bai-ley will remain with GMA and manage the organization as it conducts a search for her suc-cessor. During her tenure, GMA helped support modernization of food safety laws and regulations, resulting in the FSMA, reforms to the GRAS review process and passage of the Toxic Substances Control Act. Under her leader-ship, GMA was also in support of a federal law setting a uniform national standard for required disclosure of food and beverage ingredients from biotechnology. In addition, GMA has worked with the Food Marketing Insti-tute (FMI) to create SmartLabel, Facts Up Front, and a Product Code Dating initiative.

After more than 25 years of service with the Cooperative Network, JOHN MANSKE will retire from the organization following its 2018 legislative session. During his time with Cooperative Network, and its predecessor organization, the Wisconsin Federation of Coop-eratives, Manske was instrumen-tal in the support of legislation that furthered the cooperative way. He helped establish the Dairy Investment Tax Credit and Co-op Care, which allowed farmers to form a co-op for the purpose of purchasing health insurance. He was also instru-mental in defeating the Gross Receipts Tax on oil which would have cost Wisconsin co-ops $13 million.

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EU Approves EDA-Eucolait Guidelines For Cheese As Raw Material In Food ProductsBrussels, Belgium—The Euro-pean Union (EU) has approved guidance, developed by the Euro-pean Dairy Association (EDA) and Eucolait (European Associa-tion of Dairy Trade), on cheese as a raw material in the manufacture of food products.

“The EDA guidelines for ‘cheese as raw material’ are a concise and state of the art compendium on the high safety and quality of cheese as raw material within the processing industry. These guidelines are com-pleted by the ASSIFONTE ‘Good Manufacturing Guidelines Practice for Processed Cheese’, which set an EU benchmark and a best practice manual for the processed cheese industry,” said Alexander Anton, secretary general of EDA and of ASSIFONTE, which represents the EU processed cheese sector.

The focus of cheese manufactur-ing is to produce quality and safe end products in accordance with the objectives of EU legislation, the guidance explained.

Despite all the efforts of Food Business Operators (FBOs) along the cheese chain to achieve this, it is unavoidable that a small side-

stream of cheese material gets out of the intended commercial or hygienic specifications; most of this cheese material is still suitable for direct human consumption, whereas this may not be the case for other material.

The EDA-Eucolait guidance document was drafted primarily for the latter type of material and the objective is to assist FBOs in mak-ing decisions in line with the EU’s hygiene regulations. The guidance assists in deciding whether a cheese material is suitable for further food processing, directly or pending fur-ther treatment, or must be disposed of and used in accordance with the animal by-products legislation.

The guidance complies with key principles of food law, such as, once a food has left the food chain, it can never be reintroduced into the chain. These products consti-tuting this side stream are often referred to as “recovered cheese”.

Recovered cheese may represent excellent raw materials for process-ing into other foods, possibly after some form of treatment. Recovered cheese can be a valuable ingredient of the food sector, contributing to

nutritious foods and a sustainable food sector by assisting in reducing food waste.

The purpose of this guidance is to assist companies along the food chain “cheese-to-food products” in ensuring that the cheese mate-rial used as a raw material is col-lected, handled, and prepared in a way that renders it safe for its intended use and that, in combi-nation with the further processing, results in safe, ready-to-eat prod-ucts in accordance with applicable food hygiene legislation.

The guidance covers the use of recovered cheese used as raw mate-rial in the manufacture of foods; it primarily focuses on out-of-spec-ification cheeses and recovered cheese material used as raw mate-rial in the manufacture of foods.

For each type of cheese mate-rial, guidance is provided regarding suitable uses and, where appropri-ate, regarding necessary prepara-tion and/or treatment.

The guidance does not cover the manufacturing and handling of cheese intended for direct con-sumption. The issues of contami-nants originating from the milk used by the cheese manufacturer (the FBO) are not covered, as any cheese made from such milk would not be suitable for human food.

The advice in the guidance is intended for use by any FBO that uses recovery cheese as raw mate-rial in the manufacture of food. The guidance provides advice on the selection, handling and use of recovery cheese as a raw material in the manufacture of food products, and recommends suitable control measures and procedures that are capable of controlling contami-nation and/or restoring control of material that is out of specification.

For information, visit the EDA website, at www.euromilk.org.

For more information, circle #8 on the Reader Response Card on p. 14

CHEESE REPORTERFebruary 16, 2018 Page 9

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Magic Valley Quality Milk Producers Plans $20 Million Expansion Of Plant In Jerome, IDJerome, ID—Magic Valley Qual-ity Milk Producers (MVQMP) last Friday announced an expansion of its plant in Jerome, ID.

MVQMP’s board of directors has approved a $20 million expan-sion project designed by Power Engineers and Dairy Industry Consultants with Petersen Bros. Construction as the general con-tractor and Advanced Process Technologies, Inc. (APT) as the main milk process equipment sup-plier, according to Alan Stutzman, MVQMP’s general manager.

The members and board of directors recognize that while it is important to maintain the best relationship with its raw milk cus-tomers, it is necessary to expand into the processing of milk in order to continue to be sustainable.

As a result of the investment, MVQMP will be able to market ultrafiltered skim milk, condensed skim milk, and cream.

The project will involve the construction of a two-truck bay milk receiving building, expansion of existing process area with new processing equipment, build-out of steam, electrical and refrigera-tion systems, additional office and employee facilities.

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CA Order Delay(Continued from p. 1)

three years from now for a new milk marketing order to be imple-mented if the Supreme Court decides against administrative law judges,” Vaden said.

“By doing things this way, we avoid re-opening the hearing, there will be no re-opening of the hearing, we fix the Constitutional problem, we thereby limit our legal risk once the order becomes final, and we get the order out in the most expeditious timeframe that we can,” Vaden said.

Last Friday, the three dairy cooperatives who originally peti-tioned USDA to hold a hearing on a potential California federal order — California Dairies, Inc., Dairy Farmers of America and Land O’Lakes — wrote to Perdue “concerned about” USDA’s deci-sion to delay the rulemaking pro-ceeding.

After advocating for federal order authority in the 2014 farm bill, “California dairy farmers have been engaged for three years in advancing the FMMO regulatory proceeding” through the three co-ops, which represent 75 percent of the milk in California, the co-ops noted in a letter to Perdue. “With USDA’s management and guid-ance, we have invested substantial time and resources working hard to advance the process for our farm-ers.”

Since the May 2017 deadline for submitting comments on USDA’s recommended decision on a Cali-fornia federal order, California dairy farmers have “anxiously waited” for a final decision from USDA, along with the opportu-nity to exercise their right to vote on a California federal order, the co-ops said. A California federal order as originally proposed by the co-ops “yields critical potential benefit to the producers of Cali-fornia.”

Although USDA’s final deci-sion was expected in late 2017, the co-ops said they were “disap-pointed to learn” that it may be delayed until the Supreme Court decision on ALJs. Until USDA’s final decision is issued, “the future

of the California dairy industry as a whole remains in flux,” the co-ops said. “This uncertainty impacts our farmers’ ability to plan for the future and our ability to conduct business day-to-day, and is only compounded by the further delay of the California FMMO proceed-ing.”

The co-ops encouraged Perdue to explore “all possible options and avenues” that will allow USDA to move forward with issuing its final decision on the California order.

Also last Friday, three Califor-nia dairy producer organizations urged Perdue to move forward in the California federal order rule-making process.

“Given the number of dairy operations that have closed in California and the chronic decline in milk production here, the more than three year rulemaking process for a FMMO in California should not be delayed,” California Dairy Campaign (CDC), Milk Produc-ers Council (MPC) and Western United Dairymen (WUD) said in a letter to Perdue.

During the past three years, margins on California dairy opera-tions have been negative, the three dairy groups noted in their letter. A “clear result” of difficult financial situations, the number of dairies in the state continues to shrink. And, not due to consolida-tion, milk production in California has been declining year-over-year for 33 of the past 37 months.

The need for changes in the state system is urgent,” the letter continued. To allow dairy produc-ers the ability to evaluate a differ-ent regulatory system, the three groups urged USDA to release its final decision for a California fed-eral orders.

“California dairy families have suffered severe ecoomic hardship particularly during the past three years,” the letter noted. “As a result, many have gone out of busi-ness or acquired massive debt on top of eroded equity.”

California lost 171 dairies, rep-resenting 11 percent of the indus-try, during the four years ending in 2016 and it is expected a similar trend will be confirmed for 2017 when California Department of

Food and Agriculture (CDFA) data is released, the letter said.

“The significant negative mar-gins witnessed every quarter since January 2015 have placed many producers in a dire financial situ-ation,” the letter noted. Last year “displayed a modest recovery in the markets, but the improvements were short-lived and not signifi-cant enough to allow for positive margins.”

According to CDFA’s cost of production data, the smallest loss recorded since January 2015 was a loss of 23 cents per hundredweight of milk during the first quarter of 2017, the letter said. “The grim economic situation facing Califor-nia dairy producers demonstrates the urgency of moving forward in the FMMO process by releasing the final USDA decision.”

While the groups said they can recognize USDA’s inclination to wait for the Supreme Court’s deci-sion on ALJs before publishing a final decision, “it is not something we can support.”

Due to the economic reasons they cited, “and the commitment that dairy producers have made to the FMMO process for more than three years now, California dairy producers cannot wait until the Supreme Court renders a deci-sion” on ALJs, “which ultimately may not prove relevant to the FMMO proceedings,” the letter continued.

For more information, visit www.kelleysupply.comFor more information, circle #6 on the Reader Response Card on p. 14

CHEESE REPORTERPage 10 February 16, 2018

Section 199A(Continued from p. 1)

nies may only deduct 20 percent of their net income, the WCMA explained. This inequity has trig-gered concerns for all sectors of the dairy industry, but Congress failed to approve a fix in the last con-tinuing budget resolution.

“With members ranging from the nation’s largest dairy coopera-tives to small, multi-generation independent cheese makers, Wis-consin Cheese Makers Associa-tion is urging lawmakers to work quickly to address the inequity created by the new Section 199A in recent tax reform leglsiation,” commented John Umhoefer, the WCMA’s executive director.

“WCMA supports immediate congressional action to restore or rebalance tax policy, providing stability for dairy producers and processors alike,” Umhoefer con-tinued.

National Milk Producers Fed-eration (NMPF) is collaborat-ing with the National Council of Farmer Cooperatives (NCFC) and others in agriculture to address the competitive implications created by Section 199A, while emphasiz-ing the need to preserve the tax benefits of the new tax law for dairy cooperatives and their farmer members.

A grassroots effort, led by McCloskey, has urged that the issue be addressed by providing the Section 199 deduction to all farm-ers, rather than simply seeking to reduce the deduction for coopera-tive patrons, NMPF noted.

McCloskey called Section 199A “the most important tax reform for the farming community in a gen-eration. Unfortunately, Sec. 199A has become needlessly contro-

versial among the legislators who wrote and approved it, and among some agriculture companies who purchase farmers’ crops but are not organized as cooperatives.”

Select Milk Producers sup-ports the idea that all farmers, whether independent or coopera-tive, should receive the same tax treatment that cooperatives were granted in the new law, McClos-key said.

By attempting to compensate for the loss of the old Section 199 Domestic Production Activities Deduction (DPAD) from which cooperative farmers have long benefited, Section 199A creates a “strong competitive tool,” one which should be expanded to the entire farm sector, McCloskey said. Select supports making minor adjustments as needed that would assure all farmers could participate without causing any significant additional loss of tax revenue.

After reading the law, McClos-key concluded that it was “written with the simple and clear purpose of helping to strengthen the abil-ity of the 2.1 million farms in the US and the workers they employ to compete in world markets. Sec-tion 199A is a strong tax reform because it is straightforward, sub-stantially reduces farm taxes, and could potentially be available to all farmers who take exceptional risks each day with relatively small margins.”

Many lawmakers are now look-ing for political cover because leaving out non-cooperative com-panies created a “have and have not” scenario. This could, in turn, create an imbalance in agriculture markets, putting large independent buyers of farm products at a disad-vantage to cooperatives, McClos-key noted.

“As a family farmer, I believe in fairness and I agree that this must be corrected — but not by undercutting our ability to com-pete in against the stacked deck of global competition,” he added. “Instead, the entire farming com-munity should be included in Sec-tion 199A.”

The ‘Grain Glitch’In addition to the dairy industry, Section 199A has also attracted the attention of the grain industry. Indeed, the deduction has been termed the “grain glitch” because it would result in a “dramatically lower tax bill for farmers who sell grain to co-ops,” according to Scott Greenberg, senior analyst at the Tax Foundation.

If left in place, the “grain glitch” would allow some farmers to effec-tively become tax-exempt, and it could also create “major distortions in the agriculture industry, favor-ing cooperatives over other com-panies,” Greenberg noted in a blog posted last Thursday.

Greenberg offered the following scenario: “Imagine a farmer that sells $2 million worth of grain a year to a co-op, earns no other income, and incurs $1.6 million worth of expenses throughout the year. The farmer would end the year with $400,000 of income, which presumably ought to be subject to federal taxes. However, the farmer would also be able to claim a deduction of $400,000 (or 20 percent of the $2 million in cooperative dividends the farmer receives). As a result, the farmer would be able to wipe out his entire taxable income using the section 199A deduction, ending up with no federal tax liability whatsoever.”

The new section 199A “creates a strong incentive for farmers to

sell to co-ops, rather than private businesses,” Greenberg noted. “According to some reports, some private companies are now consid-ering forming co-ops of their own, in order to avoid losing their mar-ket share entirely, as a result of the new tax law.”

“I believe in fairness and I agree that this must be corrected —

but not by undercutting our ability to compete in against the stacked

deck of global competition...the entire

farming community should be included in

Section 199A.”

—Mike McCloskey, Select Milk Producers,

“We are aware of questions and concerns raised about the potential marketplace efects of the new sec-tion 199A of the Tax Cuts and Jobs Act as it relates to producers and agribusinesses,” Chuck Conner, president and CEO of the NCFC, and Randy Gordon, president and CEO of the National Grain and Feed Association (NGFA), said in a statement issued Jan. 11, 2018.

“We are working intensively with stakeholders, including cooperatives, non-cooperative-owned agribusinesses and Senate offices,” the statement continued. “The goal of these discussions is to arrive at an equitable solution that preserves the benefits that coop-eratives and their farmer patrons previously enjoyed under Section 199 of the tax code, while address-ing any unforeseen impacts on pro-ducers’ market decisions.

“NCFC, NGFA and our stake-holders are committed to reach-ing a solution in a thoughtful and expeditious manner, and to working with Congress to address this issue promptly,” the statement added.

NGFA was “disappointed that a solution to correct the unintended consequences of Section 199A could not be completed in time” to be included in the budget bill approved by Congress and signed by President Trump late last week Gordon said last Friday.

“Considerable progress has been made during the last several weeks of intensive effort toward reach-ing an equitable solution,” Gordon noted. The two fundamental goals of these efforts remain to replicate the tax treatment accorded to co-ops and their farmer-patrons under the previous Section 199 of the tax code, and to do so in a way that restores the competitive landscape of the marketplace that existed prior to the enactment of Section 199A on Dec. 22, 2017.For more information, circle #10 on the Reader Response Card on p. 14

CHEESE REPORTERFebruary 16, 2018 Page 11

For more information, circle #13 on the Reader Response Card on p. 14

Health Canada Seeking Input On Proposed Front-Of-Package Nutrition Symbol For FoodSymbol Would Provide Visual Cue That Food Is High In Saturated Fat, Sodium, SugarsOttawa, Ontario—Health Canada has launched consultations on reg-ulations for a new front-of-package nutrition symbol on food.

The symbol would provide a visual cue that a food is high in nutrients of public health concern, such as saturated fat, sodium or sugars, Health Canada explained. The symbol would complement the Nutrition Facts table on the back or side of the food package.

Mandatory front-of-package (FOP) labeling for foods high in one or more of saturated fat, sug-ars and sodium could, according to Health Canada: give quick and easy guidance to help consum-ers make informed choices about packaged foods; help improve the nutritional quality of packaged foods; and help health profession-als educate consumers.

Health Canada is accepting comments on the consultation by Apr. 26, 2018. The agency is seek-ing input from all interested par-ties, including consumers, industry members and associated groups, health professionals and associated groups, non-government groups, consumer associations, academics and researchers, and all levels of government.

Last September, Health Canada brought together industry and health stakeholders, as well as aca-demic and international experts, to share and review evidence and to explore options for FOP sym-bols for further consultation. The Retail Council of Canada (RCC), Food and Consumer Products of

Canada (FCPC) and the Canadian Beverage Association (CBA) each presented proposed FOP symbols that were considered at the meet-ing. Also, Abacus Data presented the results of an online survey, co-funded by FCPC and CBA.

According to Health Canada, there were a number of key mes-sages from the industry presenta-tions, including: consumers should be provided with more informa-tion, rather than just a warning label; a need for education to accompany any FOP system; and unintended consequences, such as identifying nutrient dense foods as bad, should be avoided.

The Dairy Processors Associa-tion of Canada (DPAC) said it is concerned about the proposed reg-ulations which would see numerous dairy products carrying a front-of-package nutrition label designed to act as a warning to consumers.

“To put something that is, effectively, a warning label on the front of nutritious products like cheese and yogurt is puzzling,” said Mathieu Frigon, DPAC’s interim chief operating officer.

“While we share in the gov-ernment’s goal of improving the overall health of Canadians, we do not believe that putting a label designed to deter Canadians from consuming an entire category of nutritious products is going to help us collectively achieve this goal,” Frigon added.

The proposed exemptions on whole and 2 percent milk and infant formula do not go far enough, DPAC said. Dairy prod-ucts provide significant nutrition benefits and contribute to a bal-anced diet and, therefore, should be exempt from the regulatory requirement of FOP labels.

“To focus on sodium, sugar and saturated fat content in isolation is an oversimplification, which does not account for the many nutri-tional benefits which dairy prod-ucts provide,” Frigon said.

Dairy Farmers of Canada (DFC) is concerned that FOP labeling “may come with the unintended consequence of deterring Canadi-ans from seeking more information on the nutritional value of dairy products, at the expense of a bal-anced diet for Canadians,” said Pierre Lampron, DFC’s president.

By exempting whole milk from its proposed policy, Health Canada recognizes the scientific evidence demonstrating the nutritional value of milk as a key contributor to the health of Canadians, DFC said. However, as currently pro-posed, many other dairy products, rich in essential nutrients, will be stigmatized by a warning let-ter that may confuse consumers as to which products are healthy and which are not.

“The intent of Health Canada’s Healthy Eating Strategy is to help consumers make informed health-ier choices. The best way to do this is to drive them to the Nutrition Facts table. What assurances can Health Canada give that this type of warning labeling will not simply deter consumers from the products themselves?” Lampron asked.

“This approach runs the risk of alarming consumers, and ulti-mately preventing them from learning more about the nutritional benefits of a food,” Lampron con-tinued. “This is completely con-trary to the stated intent of Health Canada. How will they address this issue for Canadians?”

Food and Consumer Products of Canada and its member com-panies welcomed Health Canada’s announcement that it was under-taking consultations regarding proposed models for FOP food and beverage labeling.

“FCPC believes that FOP label-ing should be supported by strong public awareness and consumer education aimed at improving pub-lic health. Helping Canadians bet-ter understand labels is essential to this strategy,” sand Michi Furuya Chang, senior vice president, nutrition, public and regulatory affairs at the Food and Consumer Products of Canada.

“This front-of-packaging label-ing will help Canadians to more quickly compare products and make healthier food choices for their households,” said Nathalie Savoie, CEO, Dietitians of Can-ada. “A regulated requirement will also encourage product innova-tion, providing more food products that are lower in sodium, sugars and saturated fat.

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CHEESE REPORTERPage 12 February 16, 2018

www.cheesereporter.com/events.htmSUPPLIER NEWS

COMPANY NEWS

PEOPLE

We look at cheese differently.

...because we don’t just see cheese, we see the whole picture. 1.866.404.4545 www.devilletechnologies.com

Cheese Reporter Ad.indd 1 2018-01-03 11:52 PM

Feb. 27-28: 20th Annual Dairy Ingredients Symposium, The Cliff’s Resort, Shell Beach, CA. Visit www.dairy.calpoly.edu.

•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, Wis-consin 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.

•June 30-July 2: Summer Fancy Food Show, Javits Center, New York. For information, www.specialtyfood.com.

•July 9-10: WDPA Dairy Symp-soium, The Landmark Resort, Egg Harbor, WI. More details will soon be available at www.wdpa.net.

•July 15-18: IFT Expo, McCor-mick 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.

•Oct. 29-31: National Milk Pro-ducers Federation, United Dairy Ind Association, National Dairy Board Joint Annual Meeting, JW Marriott Desert Ridge, Phoenix, AZ. Visit www.nmpf.org.

PLANNING GUIDE

Guelph Cheesemaking Technology Short Course Planned For May 14-18Guelph, Ontario—The Univer-sity of Guelph will hold its annual cheesemaking technology short course here May 14-18 on campus.

Students will learn the scientific and technological principles of cheesemaking through classroom lectures, and apply them in hands-on cheesemaking lab.

Participants will explore the manufacturing of Cheddar, Pro-volone, Gouda, Colby, Havarti, Ricotta, Feta, Camembert, Romano, and Swiss type, along with frying and processed cheese.

The five-day course is designed for dairy production and research, managers of dairy processing com-panies, ingredient suppliers, gov-ernment personnel, and others

looking to become more informed about cheesemaking.

Guelph University food sci-ence professor Art Hill will lead the class, and will cover milk quality, treatment and chemistry; processing, ripening and packag-ing; calculating yield and setting benchmarks; sanitation and qual-ity control; and cheese grading.

Class size is limited to 25 stu-dents. A registration fee of $1,827 per person includes course manual, lab supplies and lunches. A special teaching lunch will also be held on Friday at restaurant resort Cutten Fields.

Online registration is available at www.confreg.uoguelph.ca/regis-tration.

Peter Dixon’s Intro To Artisan Cheesemaking Class Is March 15-21Westminster West, VT—Cheese consultant Peter Dixon will lead a six-day workshop on the fun-damentals of cheesemaking here March 15-21 at Parish Hill Cream-ery & Farm.

The course is designed for those looking to develop or improve a small-scale business, and will fea-ture lectures on cheese aging, equipment; facilities; regulations, sanitation and food safety; business planning and creamery design.

Dixon will cover the proper-ties of sheep, cow and goats’ milk, along with seasonal milk produc-tion and the use of starter and rip-ening cultures.

Other topics of discussion include brining and surface salt-ing; cheese-specific affinage; equip-ment and facilities for small-scale commercial cheesemaking; FDA and state regulations; and business planning, including financial, mar-keting and personnel aspects.

Students will also have the hands-on opportunity to make Mozzarella, Ricotta, Tomme, Gouda, Appenzeller and Asiago at the Parish Hill facility.

For availability or details, con-tact Rachel at (802)387-4041; westminsterartisan@gmail.com.HACCP

C E R T I F I C AT I O N

This HACCP (Hazard Analysis and Critical Control

Points) Course is accredited by the International HACCP

Alliance and provides HACCP training for food

processors. The relationship between food safety and

HACCP in the food manufacturing setting will be

discussed. HACCP plans, implementation and plan

maintenance will be developed in order to prevent

foodborne illness.

Upon successful completion of the course, participants

will:

• Be eligible for two college credits in the

Laboratory Science Technician program at

Southwest Tech.

• Receive a certificate of completion with the

International HACCP Alliance gold seal.

Apply Concepts Immediately Upon Completion

• Identify and control hazards in food processing

• Develop a HACCP plan

• Implement and maintain a HACCP program

• Understand importance of prerequisite programs

• Review good manufacturing practices

FEB 28 –MARCH 1, 2018

7:30 a.m. – 5:30 p.m.Southwest Tech Campus

Health Science Building, Room 492

Course Fee: $350Includes lunch, training manual, and

Certificate of Completion.

For Assistancebis@swtc.edu 608.822.2360

Register Online Today!www.swtc.edu/bisreg

The ACT program is funded through a TAACCCT Round IV, $19.9 million grant that was awarded by the Employment and Training Administration of the U.S. Department of Labor. This is an equal opportunity program, so auxiliary aids and services are available upon request to individuals with disabilities. If you need an accommodation to visit our campus, please call 608.822.2631 (tdd: 608.822.2072) or email accom@swtc.edu.

• Receive a certificate of completion with the

Dairy Session Of USDA’s 2018 Ag Outlook Forum Scheduled For Feb. 23Arlington, VA—The USDA will host its 94th annual Agricultural Outlook Forum here Feb. 22-23, 2018 at the Crystal Gateway Mar-riott Hotel.

The 90-minute Dairy Outlook

session will take place on Feb. 23. Educational sessions will cover markets and trade, ag policy, con-servation, rural development, and advances in technology. The event will feature a keynote speaker, ple-nary panel and a choice of 30 edu-cational sessions.

To register online, visit www.

usda.gov/oce/forum.

PRESENTS THE 4TH ANNUAL...

MOUNTAINCHEESEFEST.COM SUNDAY APRIL 29

HIGHLAND BREWING

CHEESE REPORTERFebruary 16, 2018 Page 13

MARKET PLACECLASSIFIED ADVERTISINGphone: (608) 246-8430 fax: (608) 246-8431e-mail: classifieds@cheesereporter.comSe

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; drlambert@dialez.net for more information.

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

1. Equipment for Sale

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 drlambert@dialez.net.

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

1. Equipment for Sale

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 drlambert@dialez.net.

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 drlambert@dialez.net

3. Products & Services

Call 608-246-8430 for information on advertising here.

4. Walls, Flooring

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

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.

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. Auction

CHEESE ON WHEELS CHEESE PLANT ON-LINE AUCTION: AUCTION ENDS: March 5, 2018 TO BID & BUY: www.bid-2-buy.com. LOCATION: 1025 West Lincoln Street, Augusta, WI AUCTION NOTES: Gingerbread Jer-sey Cheese, LLC is no longer making cheese and is offering the cheese plant and other equipment on an online auc-tion. This cheese plant is operational and is an ideal investment for anyone looking to add value to their produc-tion. For a complete listing of items and pictures visit www.procountryauc-tion.com. TERMS: Wire transfer or certified funds may be used for pay-ment. 10% Buyers Fee Applies. WI 5.5% sales tax will be collected on all items. All items being offered for sale are being sold “as is, where is” with no warranty or guarantee. Listing is sub-ject to change prior to auction. SALE CONDUCTED BY: ProCountry, LLC Auction Service, Registered Wisconsin Auction Company # 280; Mondovi, WI. AUCTIONEERS: Scott Werlein (715) 495-6131 Registered WI Auctioneers #178.

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

7. 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: tsloan@tsloan.com.

8. Help Wanted

CHEESE/DAIRY PROCESSOR: We are looking for a production/lead cheese maker for our dairy operation on the west coast. Experience in pasteurized process cheese, American-type-ana-log is a plus. For details please contact 702-591-6962.

9. Consulting

10. Cheese & Dairy Products

KEYS MANUFACTURING: Dehydrators of scrap cheese for the animal feed industry. Contact us for your scrap at (217) 465-4001; email keysmfg@aol.com.

11. Testing Services

Promote your microbiological, nutritional or food sample testing services here. Call 608-246-8430 for more information or email info@cheesereporter.com.

For hard to find products, supplies or employees, visit

www.cheesereporter.com/classifieds.htm or e-mail info@cheesereporter.com

or 608-246-8430 or 608246-8431

www.gmigaskets.com

SALE CONDUCTED BY: ProCountry, LLC Auction Service, Registered Wisconsin Auction Company # 280; Mondovi, WI.

AUCTIONEERS: Scott Werlein (715) 495-6131 Registered WI Auctioneers #178.

CHEESE ON WHEELS CHEESE PLANT ON-LINE AUCTION

AUCTION ENDS: March 5, 2018TO BID & BUY: www.bid-2-buy.com.

LOCATION: 1025 West Lincoln Street, Augusta, WI AUCTION NOTES: Gingerbread Jersey Cheese, LLC is no longer making cheese and is offering the cheese plant and other equipment on an online auction. This cheese plant is operational and is an ideal investment for anyone looking to add value to their production. For a complete listing of items and pictures visit www.procountryauction.com. TERMS: Wire transfer or certified funds may be used for payment. 10% Buyers Fee Applies. WI 5.5% sales tax will be collected on all items. All items being offered for sale are being sold “as is, where is” with no warranty or guarantee. Listing is subject to change prior to auction.

CHEESE ON WHEELS CHEESE PLANT ONLINE AUCTION

AUCTION ENDS: Monday, March 5, 2018LOCATION: 1025 West Lincoln Street, Augusta, WITO BID & BUY: www.bid-2-buy.com. AUCTION NOTES: Gingerbread Jersey Cheese, LLC is no longer making cheese and is offering the cheese plant and other equipment on an online auction. This cheese plant is operational and is an ideal investment for a dairyman who is looking to add value to their milk production. For a complete listing of items and pictures visit www.procountryauction.com.TERMS: Wire transfer or certified funds may be used for payment. 10% Buyers Fee Applies. WI 5.5% sales tax will be collected on all items. All items being offered for sale are being sold “as is, where is” with no warranty or guarantee. Listing is subject to change prior to auction.SALE CONDUCTED BY: ProCountry, LLC Auction Service, Registered Wisconsin Auction Company # 280; Mondovi, WI. AUCTIONEERS: Scott Werlein (715) 495-6131 Registered WI Auctioneers #178.

CHEESE ON WHEELS CHEESE PLANT ONLINE AUCTION

AUCTION ENDS: Monday, March 5, 2018LOCATION: 1025 West Lincoln Street, Augusta, WITO BID & BUY: www.bid-2-buy.com. AUCTION NOTES: Gingerbread Jersey Cheese, LLC is no longer making cheese and is offering the cheese plant and other equipment on an online auction. This cheese plant is operational and is an ideal investment for a dairyman who is looking to add value to their milk production. For a complete listing of items and pictures visit www.procountryauction.com.TERMS: Wire transfer or certified funds may be used for payment. 10% Buyers Fee Applies. WI 5.5% sales tax will be collected on all items. All items being offered for sale are being sold “as is, where is” with no warranty or guarantee. Listing is subject to change prior to auction.SALE CONDUCTED BY: ProCountry, LLC Auction Service, Registered Wisconsin Auction Company # 280; Mondovi, WI. AUCTIONEERS: Scott Werlein (715) 495-6131 Registered WI Auctioneers #178.

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

Email: sales@genmac.comwww.genmac.com

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

Email: sales@genmac.comwww.genmac.com

3010 TU-WaySimultaneously cuts either two 40-lb blocks

or up to four 20-pound Mozz loaves.

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

Email: sales@genmac.comwww.genmac.com

General Machinery Corporation

1820 Single DirectionCheese Cutter

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

Call NOW at 1-888-243-6622Email: sales@genmac.com

www.genmac.com

General Machinery Corporation

Hydrauflake ChunkerFrozen Block Flaker

Designed to chunk frozen cheese and butter blocks in preparation for further processing.

Call NOW at 1-888-243-6622Email: sales@genmac.com

www.genmac.com

3001EW TU-WAY Exact Weight Cheese Cutter

Designed to cut cheese blocks into portions for packaging or further processing.

Operations ManagerPlainview Milk Products Cooperative is seeking a qualified Operations Manager candidate. This position requires a working knowledge of Safe Quality Food Practices and enforcement on GMP’s. This position works extensively with employees, QA department, Maintenance and Inspectors assuring all documentation is filled out complete and in a timely manner. Production planning, equipment process controls, good communication, supervisory, public relations and organizational skills and a functional knowledge of manufacturing facilities, equipment, processes, and regulations is a must. Must be able to communicate effectively with employees.

A Bachelor’s Degree in Dairy Food Science or Diary Science preferred; 5+ years of experience in managing position is required. 3-5 years of Food Processing, Department Management, operations and manufacturing experience is a must. SQF Standards/HACCP is preferred, but will train.

Plainview Milk Products Cooperative offers a competitive salary with relocation bonus, Health, Dental, Life, and Disability

Qualified Candidates please submit resume and salary requirements to: Attn: Human Resources 130 2nd Street SW, Plainview, MN 55964 507-534-3872 becky@plainviewmilk.com

Production SupervisorEstablished in 1899 as dairy cooperative servicing local patrons, Plainview Milk Products is located 1.5 hrs from the Twin Cities of Minneapolis/ St. Paul and 30 min-utes from Rochester in beautiful SE Minnesota.We are looking for an experienced supervisor for our newly remodeled and automated dryer and evaporators to lead a team of production as-sociates and excel in our mission. The Production Supervisor will assist in creating an atmosphere where people are: Committed to what we want to become (our vision), able to execute our mission & guided by our core values. This position will oversee the operation of the Dryer and Evaporator plant, while ensuring that all measures for Food Safety, Quality, Regulatory Stan-dards and Good Manufacturing Practices are followed. The successful candidate will have excellent leadership, planning, organi-zational, problem solving and interpersonal communication skills. This posi-tion requires a Bachelor’s degree or equivalent in Dairy Science or related field and at least 3-5 years’ experience in a food manufacturing/ dairy environment. We will offer the successful candidate a competitive wage, health insur-ance benefits and paid vacation time.For consideration, please email, fax or mail a cover letter, resume and salary requirements to:

Plainview Milk ProductsAttn: Human Resources130 2nd St. SW, Plainview, MN 55964Fax 507-534-3992E-Mail: becky@plainviewmilk.com

CHEESE REPORTERPage 14 February 16, 2018

HISTORICAL MILK PRICES - CLASS IV Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

‘09 9.59 9.45 9.64 9.82 10.14 10.22 10.15 10.38 11.15 11.86 13.25 15.01‘10 13.85 12.90 12.92 13.73 15.29 15.45 15.75 15.61 16.76 17.15 16.68 15.03 ‘11 16.42 18.40 19.41 19.78 20.29 21.05 20.33 20.14 19.53 18.41 17.87 16.87‘12 16.56 15.92 15.35 14.80 13.55 13.24 14.45 15.76 17.41 18.54 18.66 17.83‘13 17.63 17.75 17.75 18.10 18.89 18.88 18.90 19.07 19.43 20.17 20.52 21.54‘14 22.29 23.46 23.66 23.34 22.65 23.13 23.78 23.89 22.58 21.35 18.21 16.70‘15 13.23 13.82 13.80 13.51 13.91 13.90 13.15 12.90 15.08 16.43 16.89 15.52‘16 13.31 13.49 12.74 12.68 13.09 13.77 14.84 14.65 14.25 13.66 13.76 14.97‘17 16.19 15.59 14.32 14.01 14.49 15.89 16.60 16.61 15.86 14.85 13.99 13.51‘18 13.13

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

CHEESE REPORTER READER RESPONSE CARD(Print Your Name and Address Clearly Below)

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

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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: 2/16/18

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February 14, 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 Feb. 10 Feb. 3 Jan. 27 Jan. 20

40-Pound Block Cheddar Cheese Prices and Sales Weighted Price Dollars/PoundUS 1.5357 1.5283• 1.5301• 1.5278• Sales Volume PoundsUS 12,959,069 11,617,801• 13,758,303• 12,464,247•

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

Weighted Price Dollars/PoundUS 1.4392 1.4488• 1.4648• 1.4892• Weighted Price Adjusted to 38% Moisture US 1.3720 1,3780• 1.3964• 1.4201• Sales Volume PoundsUS 13,609,999 11,629,492• 13,042,637• 12,326,455•Weighted Moisture Content PercentUS 34.96 34.81• 34.96• 34.98•

Butter

Weighted Price Dollars/PoundUS 2.1302 2.1524 2.1550• 2.1822Sales Volume PoundsUS 6,033,397 5,155,006• 4,118,701• 4,525,163

Dry Whey Prices

Weighted Price Dollars/PoundsUS 0.2528 0.2524 0.2709• 0.2696Sales Volume US 10,185,600 8,946,673• 7,067,373• 6,454,231

Nonfat Dry Milk

Average Price Dollars/PoundUS 0.7130 0.6981• 0.7037 0.6950Sales Volume PoundsUS 21,617,960 22,397,300• 21,628,366• 20,323,090•

DAIRY PRODUCT SALES

Class 1: Equivalent Lb. Fat Lb. SNF LB. Fluid Per CWTNorthern CA $2.3644 $0.6283 $0.0166 $15.20Southern CA $32.3644 $0.6283 $0.0197 $15.47

Statewide Average CWT Price Based Upon Production $15.21 Based Upon Utilization $15.34

Commodity Market Prices Product $ Per LB.Cheese, US 40-block, CME $1.4886 AA Butter, CME $2.1018CA Extra Grade & Grade A NFDM $0.7194Western Dry Whey (Mostly) $0.2400

Commodity Reference Price for March Class 1 - $15.6708

California Class 1 Minimum Prices & Other Advanced Prices - March 2018

$0.70

$0.75

$0.80

$0.85

$0.90

$0.95

$1.00

$1.05

$1.10

Central & East Western

2017 NDM PricesHigh Range (Low/Medium Heat): Mostly

DAIRY FUTURES PRICESSETTLING PRICE *Cash SettledDate Month Class III* Class IV* Dry Whey* NDM* Butter* Cheese*2-9 February 18 13.47 13.04 24.850 72.150 210.850 1.48102-12 February 18 13.47 13.04 24.850 72.150 210.850 1.48102-13 February 18 13.48 13.04 24.850 72.150 212.350 1.48502-14 February 18 13.48 13.04 24.875 71.400 212.025 1.48402-15 February 18 13.46 13.04 25.000 71.450 212.100 1.47902-9 March 18 13.63 13.18 24.750 75.000 209.525 1.50102-12 March 18 13.56 13.18 24.750 74.500 210.250 1.49402-13 March 18 13.75 13.24 25.000 74.325 212.050 1.51302-14 March 18 13.97 13.35 25.075 73.025 217.050 1.52902-15 March 18 14.04 13.62 25.550 73.000 221.525 1.5370

2-9 April 18 13.77 13.41 25.125 76.350 211.625 1.50502-12 April 18 13.75 13.41 25.125 75.900 212.025 1.50502-13 April 18 13.93 13.47 25.400 77.850 215.000 1.52002-14 April 18 14.15 13.57 26.000 74.700 220.000 1.53702-15 April 18 14.10 13.78 26.300 74.000 223.500 1.53802-9 May 18 14.14 13.72 26.200 78.175 215.000 1.53602-12 May 18 14.10 13.71 26.200 77.850 215.125 1.53502-13 May 18 14.29 13.71 26.700 76.925 217.975 1.53002-14 May 18 14.46 13.90 27.000 76.300 222.975 1.56702-15 May 18 14.41 14.03 26.875 76.275 225.825 1.56102-9 June 18 14.56 13.98 27.500 80.000 217.000 1.57102-12 June 18 14.52 13.98 27.500 79.800 217.875 1.57202-13 June 18 14.69 14.12 27.850 78.900 219.900 1.58502-14 June 18 14.78 14.02 28.150 77.600 224.900 1.59702-15 June 18 14.80 14.28 27.875 77.200 227.600 1.59502-9 July 18 15.06 14.12 28.525 81.750 219.450 1.62002-12 July 18 15.08 14.12 28.525 81.500 220.225 1.61902-13 July 18 15.16 14.15 28.775 80.650 221.775 1.62702-14 July 18 15.25 14.21 28.875 79.125 226.700 1.64002-15 July 18 15.27 14.37 28.600 78.775 230.000 1.6400

2-9 August 18 15.48 14.37 29.000 83.350 221.875 1.66002-12 August 18 15.52 14.37 29.000 82.750 222.875 1.66002-13 August 18 15.60 14.40 29.000 84.500 224.275 1.67002-14 August 18 15.67 14.44 29.000 81.750 228.750 1.67902-15 August 18 15.66 14.57 28.525 80.275 232.175 1.6750

2-9 September 18 15.74 14.61 29.300 84.875 223.500 1.68602-12 September 18 15.74 14.61 29.300 84.300 224.750 1.68602-13 September 18 15.84 14.63 29.300 84.300 225.925 1.69202-14 September 18 15.86 14.65 29.300 82.500 230.000 1.69702-15 September 18 15.89 14.74 29.300 81.600 231.975 1.69502-9 October 18 15.95 14.91 29.750 86.500 225.025 1.70102-12 October 18 15.95 14.91 29.750 86.000 225.300 1.70102-13 October 18 16.00 14.91 29.900 86.000 226.075 1.70802-14 October 18 16.00 14.91 29.900 84.175 229.850 1.71002-15 October 18 16.03 14.91 29.900 85.950 232.500 1.7100

2-9 November 18 15.88 14.92 30.450 87.000 225.000 1.69802-12 November 18 15.88 14.92 30.450 87.500 225.750 1.69902-13 November 18 15.94 14.92 30.450 87.500 225.925 1.70202-14 November 18 15.96 14.92 30.450 86.875 229.375 1.70502-15 November 18 15.97 14.98 30.250 83.125 231.650 1.670002-9 December 18 15.77 15.14 30.875 88.500 225.000 1.68202-12 December 18 15.77 15.14 30.875 88.900 225.000 1.68102-13 December 18 15.80 15.14 30.900 88.900 225.100 1.68202-14 December 18 15.82 15.14 31.000 88.425 228.000 1.68502-15 December 18 15.83 15.11 31.000 85.000 231.650 1.6850

Interest - Feb. 15 24,274 1,349 3,915 7,422 7,896 278,026

$1.35

$1.45

$1.55

$1.65

$1.75

$1.85

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

40-Pound Block Avg

CME vs AMS

CHEESE REPORTERFebruary 16, 2018 Page 15

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

02/12/18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,823 89,86302/01/18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,160 90,105Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,663 -242

NATIONAL - FEB . 9: Cheese production is active . However, some cheese plant man-agers have reined in production in order to manage growing inventories . Milk availability is generally abundant, but a few northeastern contacts report somewhat tight milk availability due to winter weather conditions . Reported spot milk prices from contacts in the Midwest ranged from $1 over to $4 under Class III . Cheese stocks are generally balanced . Demand is mixed . Some market participants report a decline in cheese sales in the days following the Super Bowl . There are expectations that buyers will replenish stocks in upcoming weeks . The market tone is generally healthier . However, the fairly large block to barrel price gap remains a reminder of potential instability .

NORTHEAST- FEB . 14: Cheese makers in the Northeast are pulling steady milk vol-umes for stable cheese production . Milk availability is steady to somewhat tight in parts of the Northeast . With regular cheese production schedules, inventories are fairly balanced as sup-plies are in line with current demand . Spot trading activities are steady to a bit slower this week .

Wholesale prices, delivered, dollars per/lb:Cheddar 40-lb blocks: $1.9725 - $2.2575 Muenster: $1.9575 - $2.3075Process American 5#: $1.4950 - $1.9750 Swiss Cuts 10-14 lbs: $3.3225 - $3.6450

MIDWEST AREA - FEB . 14: Midwest cheese makers are reporting some positive trends in cheese demand . Barrel sellers have reported that inventories are limited, and buy-ers searching for loads produced as recently as early 2018 are out of luck . Cheddar demand, along with Cheddar inventories, vary from plant to plant . Spot milk into cheese production was widely available, as it has been most of the year . Spot milk prices ranged from flat to $3 under Class III . Some milk suppliers were lighter on spots this week, but others appear to be filling in the gaps for cheese plant managers . Cheese production is steady to fully active, and with the exception of plant updates or maintenance, some plant managers plan to run seven days a week for the near future . The cheese markets are generally steady, and some are questioning whether the large block to barrel CME price gap is the new normal . Still, other midwestern cheese contacts question the direction the markets will take in order to regain what was once the status quo .

Wholesale prices delivered, dollars per/lb: Blue 5# Loaf: $2.1475 - $3.1350Cheddar 40# Block: $1.6075 - $2.0525 Monterey Jack 10#: $1.8550 - $2.0600Mozzarella 5-6# (LMPS): $1.6800 - $2.6200 Muenster 5# Loaf: $1.8800 - $2.3050Process American 5#: $1.4500 - $1.8100 Grade A Swiss 6-9#: $2.8400 - $2.9575

WEST - FEB . 14: Cheese makers in the West report relatively steady domestic demand . Although a few manufacturers have seen the typical seasonal slowdown of orders for fin-ished goods, overall, cheese is moving without a lot of discounting . Higher cheese prices in the EU and Oceania are helping generate good sales opportunities in some international markets . Cheese production is active while there is an abundance of milk . Cheese inven-tories are generally heavy . The US weighted average advertised retail price for an 8-ounce pack of natural shredded cheese is $2 .16, down $ .02 from last week . Packs average $2 .37 in the Southwest and $2 .00 in the Northwest . One year ago, the national price was $2 .36 . For 8-ounce blocks, the US price is $2 .10 . Blocks average $2 .34 in the Southwest and $2 .03 in the Northwest .

Wholesale prices delivered, dollars per/lb: Cheddar 10# Cuts: $1.8200 - $2.0400Cheddar 40# Block: $1.6400 - $2.0850 Monterey Jack 10#: $1.8300 - $1.9900Process American 5#: $1.4375 - $1.6950 Grade A Swiss 6-9#: $2.9000 - $3.3300

FOREIGN -TYPE CHEESE - FEB . 14: In Germany, the demand for sliced cheese is strong . Most requests are planned ahead of time as additional short notice requests can hardly be fulfilled . Stocks of cheese are decreasing . Exports to southern European countries are quiet while sales to Asia are very good . In the European Union, cheese production is active due to readily available milk . Inventories of cheese are enough to meet end users’ needs . Selling prices, delivered, dollars per/lb: Imported Domestic

Blue: $2.6400 - 5.2300 $2.0250 - 3.5125Gorgonzola: $3.6900 - 5.7400 $2.5325 - 3.2500Parmesan (Italy): 0 $3.4150 - 5.5050Romano (Cows Milk): 0 $3.2150 - 5.3650Sardo Romano (Argentine): $2.8500 - 4.7800 0Reggianito (Argentine): $3.2900 - 4.7800 0Jarlsberg (Brand): $2.9500 - 6.4500 0Swiss Cuts Switzerland: 0 $3.3600- 3.6825Swiss Cuts Finnish: $2.6700- 2.9300 0

NATIONAL - FEB . 9: Cream into butter production is available to plentiful . Manu-facturers are churning/microfixing at active rates . Inventories are growing . Interest in unsalted butter has increased . Demand is picking up ahead of the spring holidays, although a number of consumers are hold-ing off on purchases, waiting to see where prices lead . Only new crop butter will be eligible for trading at the CME as of March 1 . Ergo, butter that will not qualify after the deadline may be depressing the markets manufacturers push out large quantities of stock . The butter market tone is unsettled . However, some contacts report that butter is in a steadier position than other dairy com-modities .

NORTHEAST - FEB . 14: Butter churns are active as cream supplies are heavy . A number of industry contacts report light demand . Consequently, some manufactur-ers are only churning to fill prescheduled orders . Inventories continue to grow in anticipation of the upcoming spring holiday season . Sales of bulk butter in domestic markets are flat to 5 cents over the market of the CME Group, with various time periods and averages used . The butter market tone is unstable .

CENTRAL - FEB . 14: Butter interest is trending up throughout the Central region . Current prices have garnered the attention

of buyers, as butter producers report steady to increased sales this week . Cream remains available for butter churning, although there are some reports that cream suppliers are not offering out as much . Reported Class IV cream multiples ranged from 1 .05 to 1 .15 f .o .b . Butter production varies from plant to plant, but some butter producers are cut-ting back on production, as stocks are in balance for the upcoming seasonal push . This week’s market price uptick has, at least temporarily, quashed some of the recent anxiety felt by butter producers in the region and across the nation . Bulk butter prices ranged from flat market to 7 cents over the CME average .

WEST - FEB . 14: In the West, butter pro-duction is lively as manufacturers clear heavy cream loads to the churns . Reports suggest that although butter sales are copacetic, they are not enough to counter the heavy sup-plies of cream . Butter supplies are steady to growing in the West partly due to an upsurge in freight cost for out of region sales . Retail orders for the forthcoming holiday are starting to pick up in the West . Processors also report receiving more inquiries for bulk butter . West-ern bulk butter prices for this week range 2 cents below to 6 .5 cents above the market .The US weighted average advertised price of 1-pound butter is $3 .56 down $ .23 from last week . The US weighted average price was $3 .04 one year ago .

ORGANIC DAIRY - RETAIL OVERVIEW

Total conventional dairy advertisements decreased by 1 percent, and total organic dairy advertisements decreased by 14 percent . Conventional half-gallon milk ads increased from last week by 87 percent, while conventional 1-pound blocks of cheese saw a 26 percent decline . Organic milk ads, for one-gallon units, jumped 738 percent from last week, the larg-est increase this week . The national weighted average advertised conventional milk price for half-gallons, $2 .56, increased 56 cents from a week ago . Milk gallons averaged $2 .96, up 63 cents from last week . Organic half-gallon prices averaged $4 .19, up 56 cents from one week ago . Organic milk gallons averaged $6 .26, down 87 cents from last week . Total conventional cheese advertisements increased 6 percent, while organic cheese ads decreased 95 percentcompared to last week . The weighted average price of conventional 8-ounce block cheese was $2 .34, compared to $3 .49 for organic 8 ounce-blocks, an organic premium of $1 .15 . The average conventional one-pound butter price was $3 .51, down 5 cents from a week ago . The average organic one-pound butter price was $5 .25, up 3 cents from a week ago . The resulting organic butter premium is $1 .74 .

National Weighted Retail Avg Price: Butter 1 lb: $5.29Cheese 8 oz block: $3.49Cottage Cheese 16 oz: $3.99Sour Cream 16 oz: $2.50Yogurt 4-6 oz: $1.33

Yogurt 32 oz: $3.11Greek Yogurt 4-6 oz: $0.99Flavored Milk ½ gallon: $3.99Milk ½ gallon: $4.19Milk gallon: $6.26Milk UHT 8 oz: $1.00

RETAIL PRICES - CONVENTIONAL DAIRY - FEBRUARY 16Commodity

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

Flavored Milk ½ gallon

Flavored Milk 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 .51 3 .87 3 .33 2 .62 4 .07 4 .36 3 .64

2 .34 2 .20 2 .58 2.04 2.47 2 .23 2 .23

3 .72 3 .42 2 .99 4 .33 3 .70 NA NA

7 .74 8 .37 NA NA 4 .99 8 .44 6 .36

2 .31 2 .29 2 .42 2 .13 2 .26 2 .39 2 .23

3.78 3 .50 2 .99 4 .46 3 .50 3 .99 NA

1 .86 2 .29 2 .01 .99 1 .23 1 .46 NA

1 .75 1 .65 1 .79 1 .58 1 .49 1 .67 2 .34

2.86 2 .71 2 .58 3 .09 3 .25 2 .89 2 .93

2 .44 2 .35 1 .99 2 .00 NA 2 .99 NA

3 .26 3 .99 3 .49 3 .36 NA NA 1 .99

2 .56 2 .75 NA NA 1 .92 2 .62 NA

2 .96 3 .30 3 .86 2 .41 2 .14 2 .66 1 .99

1 .57 1.63 1 .64 1.37 1 .40 1 .55 1 .99

.97 1 .00 1 .00 .93 .99 .96 .89

4.24 4 .25 NA 3 .99 4 .25 4 .26 3 .50

.51 .55 .48 .50 .47 .50 .50

2 .78 3 .28 NA NA NA 2 .19 NA

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 - FEBRUARY 15NDM - CENTRAL: Low/medium heat nonfat dry milk (NDM) prices slightly decreased on top of the range and remained steady on the mostly price series . Low/medium heat NDM spot market activ-ity was generally quiet, as some buyers and manufacturers are at an impasse regarding the current value of low/medium heat NDM . A number of manufacturers are offering loads at the mid $ .70 range, but buyers are hesitant to purchase with the known plethora of domestic NDM and global SMP stocks available . Low/medium heat production continues apace . The NDM market isuncertain, as market prices have held their ground in the face of some bearish sentiment .

NDM - EAST: Low and medium heat NDM prices are unchanged in the mostly series . Production is steady to higher, sup-ported by an increase in drying schedules in the region . NDM demand and move-ment are mixed, mostly light . While inter-est is unsteady, the market is not balking in looking ahead, compelled by some uncer-tainty where prices and availability could

potentially land . Low/medium heat NDM trading centers primarily around interest from regular customer accounts . High heat nonfat dry milk prices are steady . Produc-tion of high heat is sporadic . Contracted loads to baking customers continue to meet their processing needs .

NDM - WEST: Some contacts report that the price surge last week has calmed down . However, the prices have slightly decreased at the top of range, but increased at the bottom . According to a number of market participants, the price changes could be due to the recent increase in gDT and a weaker value of the dollar . Inventories of low/medium heat nonfat dry milk continue to surpass current demand . As so, some people believe that the price increase cannot be sustained for a long period of time . Low/medium heat NDM sales are steady, with the bakery sector taking regular loads . Some contacts report being concerned with dryers’ avail-ability for high heat nonfat dry milk pro-cessing as low/medium heat production has been the priority of many processors .

WHOLESALE BUTTER MARKETS

CHEESE REPORTERPage 16 February 16, 2018

HISTORICAL MILK PRICES - CLASS III Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

‘07 13.56 14.18 15.09 16.09 17.60 20.17 21.38 19.83 20.07 18.70 19.22 20.60‘08 19.32 17.03 18.00 16.76 18.18 20.25 18.24 17.32 16.82 17.06 15.51 15.28‘09 10.78 9.31 10.44 10.78 9.84 9.97 9.97 11.20 12.11 12.82 14.08 14.98‘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 15.44‘18 14.00

CME CASH PRICES - FEBRUARY 12 - 16, 2018Visit www.cheesereporter.com for daily prices

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

MONDAY $1.3600 $1.5025 $2.0300 $0.7350 February 12 (NC) (-¾) (+¼) (NC)

TUESDAY $1.3625 $1.5100 $2.0625 $0.7300 February 13 (+¼) (+¾) (+3¼) (-½)

WEDNESDAY $1.3900 $1.5100 $2.1350 $0.7300 February 14 (+2¾) (NC) (+7¼) (NC)

THURSDAY $1.4200 $1.5250 $2.1500 $0.7275 February 15 (+3) (+1½) (+1½) (-¼)

FRIDAY $1.4800 $1.5400 $2.1000 $0.7050February 16 (+6) (+1½) (-5) (-2¼)

Week’s AVG $1.4025 $1.5175 $2.0955 $0.7255 Change (+0.0435) (+0.0005) (+0.0280) (-0.0120)

Last Week’s $1.3590 $1.5170 $2.0675 $0.7375AVG

2017 AVG $1.6440 $1.5985 $2.1410 $0.8925Same Week

MARKET OPINION - CHEESE REPORTERCheese Comment: No blocks were sold Monday; the price fell on an uncovered offer of 1 car at $1.5025. Two cars of blocks were sold Tuesday, both on offers, the last at $1.5100, which raised the price. Eight cars of blocks were sold Wednesday, all on bids, the last at $1.5100, which left the price unchanged. Two cars of blocks were sold Thursday, both on bids, the last at $1.5250, which raised the price. On Friday, 1 car of blocks was sold on a bid at $1.5400, which raised the price. The barrel price increased Tuesday on bid-based sales of 4 cars at $1.3625, rose Wednesday on an offer-based sale of 1 car at $1.3900, increased Thursday on bid-based sales of 2 cars at $1.4200, and jumped Friday on sales of 2 cars at $1.4800.

Butter Comment: The butter price increased Monday on a bid-based sale of 1 car at $2.0300, rose Tuesday on an unfilled bid for 1 car at $2.0625, jumped Wednesday on a bid-based sale of 1 car at $2.1350, rose Thursday on an offer-based sale of 1 car at $2.1500, then fell Friday on an offer-based sale of 1 car at $2.1000.

NDM Comment: The nonfat dry milk price fell Tuesday on a bid-based sale of 1 car at 73.0 cents, declined Thursday on an uncovered offer of 1 car at 72.75 cents, and fell Friday on an unfilled bid at 70.50 cents (following a sale at 70.25 cents).

WHEY MARKETS - FEBRUARY 12 - 16, 2018RELEASE DATE - FEBRUARY 15, 2018

Animal Feed Whey—Central: Milk Replacer: .1500 (NC) – .2300 (NC)

Buttermilk Powder: Central & East: .6700 (+2) – .7900 (-1) West: .6800 (NC) – .8000 (NC) Mostly: .7000 (NC) – .7300 (NC)

Casein: Rennet: 2.2300 (+3) – 2.2900 (+1) Acid: $2.9900 (NC) - $3.3500 (+1)

Dry Whey—Central (Edible): Nonhygroscopic: .1900 (NC) – .2700 (-1) Mostly: .2200 (NC) – .2600 (NC) Dry Whey–West (Edible): Nonhygroscopic: .2000 (NC) – .3100 (NC) Mostly: .2200 (NC) – .2600 (NC)

Dry Whey—NE: .2500 (NC) – .3100 (NC)

Lactose—Central and West: Edible: .1700 (NC) – .3500 (NC) Mostly: .1900 (NC) –.2450 (NC)

Nonfat Dry Milk —Central & East: Low/Medium Heat: .6900 (NC) – .7600 (-½) Mostly: .7100 (NC) –.7400 (NC) High Heat: .8500 (NC) – .9400 (NC)

Nonfat Dry Milk —Western: Low/Medium Heat: .6750 (+3½) – .78750 (-¼) Mostly: .7000 (NC) –.7500 (NC) High Heat: .8500 (NC) – .9650 (-3½)

California Weighted Average NFDM: Price Total Sales February 9 $0.7186 11,351,537 February 2 $0.7195 9,665,520 Whey Protein Concentrate—Central and West: Edible 34% Protein: .5900 (NC) – .9400 (NC) Mostly: .6700 (NC) – .7800 (NC)

Whole Milk—National: 1.4000 (-1) – 1.5000 (+2) Visit www.cheesereporter.com for dairy and historical cheese, butter, and whey prices

For more information, circle #35 on the Reader Response Card on p. 14

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National Dairy FARM Program Complies With ISO Animal Welfare Requirements: USDAWashington—USDA’s Agricul-tural Marketing Service (AMS) on Wednesday announced that it has determined that the National Dairy Farmers Assuring Responsi-ble Management (FARM) Program complies with the International Organization for Standardization (ISO) Animal Welfare Manage-ment/General Requirements and Guidance for Organizations in the Food Supply Chain.

“This is the first livestock animal care program approved by AMS under the assessment program which establishes a strong frame-work for industry animal welfare standards and programs to be veri-fied that they are rooted in science and can be widely accepted,” said Greg Ibach, USDA under secre-tary for marketing and regulatory programs.

USDA’s affirmation that the FARM Program is ISO-compliant “validates the hard work of every-one who has contributed to the FARM Program in the past decade, from the veterinarians and academ-ics who helped design the program, to the farmers and dairy coopera-

tives who implement it,” said Emily Meredith, chief of staff at the National Milk Producers Fed-eration (NMPF), which launched the FARM Program in 2009. “The US dairy industry has worked hard to make the FARM Program a best-in-class animal care program, not just in the United States, but now around the world.”

ISO’s animal welfare technical specification was designed to eval-uate if animal welfare programs meet international standards for animal care, NMPF explained.

ISO, an independent, inter-national standards-setting body, has worked for several years with the World Organization for Ani-mal Health (OIE) to help farmers and animal welfare programs like FARM determine how to imple-ment species-specific animal wel-fare standards.

The World Organization for Animal Health, the World Trade Organization-recognized body for setting animal health and welfare standards affecting international trade, adopted dairy cattle welfare standards in 2015.

In the US, USDA’s Agricul-tural Marketing Service offers a voluntary marketing program that ensures independent welfare pro-grams meet the specifications of the ISO standard.