Gap Between Butter, Skim Milk Powder Prices To Remain Wider Than Before 2017

determine whether the standards were still needed. To initiate that review, the agencies published advanced notices of proposed rule-making (ANPRMs) on food stan-dards in December 1995 (FDA) and September 1996 (FSIS).

In those ANPRMs, FDA and FSIS identified problems with existing food standards, and pre-sented alternatives to those existing standards. Alternatives presented by FDA included, among others, revoking existing food standards and regulating all foods as nonstandardized foods; requiring that products declare the percentage of all major ingredi-ents on the label; requiring that products declare the percentage of characterizing ingredients in the food name; identifying “parent” products with minimum composi-tional requirements; and establish-ing generic food standards (such as the standards for hard cheeses).

In the 2005 proposed rule, FDA and FSIS proposed general prin-ciples for establishing new food standards and for revising or elimi-nating existing food standards. In

• See Standards Proposal, p. 10

Serv

ing

theWorld's Dairy Industry W

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Since 1876

CHEESE REPORTER Vol. 143, No. 18 • Friday, October 19, 2018 • Madison, Wisconsin

FDA To Reopen Comment Period On 2005 Food Standards Proposal

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USDA Seeking To Buy 8.2 Million Pounds Of Process, Cheddar Cheese As Part Of Trade Aid PackageWashington—USDA’s Agricul-tural Marketing Service (AMS) on Monday issued invitations for bids for a total of about 8.2 mil-lion pounds of process and natu-ral Cheddar cheese for use in The Emergency Food Assistance Pro-gram (TEFAP).

These invitations for bids are part of the Food Purchase and Dis-tribution Program, one of three programs announced in late July to assist farmers in response to trade damage from retaliatory tar-iffs being imposed by several US trading partners (for more details, please see USDA Announces Aid For Dairy, Other Farmers Hurt By Tariffs, on page 1 of our July 27th issue by scanning the QR Code on page 2 of this issue).

Under the invitations issued Monday, USDA is seeking a total of 6,019,200 pounds of regular process cheese, 6/5-pound loaves, for delivery from December 2018 through March 2019; and a total of 2,192,400 pounds of yellow Ched-dar cheese chunks, 12/1-pound packages, also for delivery from December 2018 through March 2019.

Offers under both invitations are due by 9:00 a.m. Central time on Tuesday, Oct. 23. For more information on the process cheese solicitation, contact Caroline Rus-sell, at (202) 720-8764; email Car-oline.Russell@ams.usda.gov. For

• See USDA Seeks Cheese, p. 5

Trump Administration Announces Intent To Negotiate Trade Pacts With Japan, EU, UKWashington—At the direction of President Trump, US Trade Rep-resentative (USTR) Robert Light-hizer on Tuesday notified Congress that the Trump administration intends to negotiate three sepa-rate trade agreements with Japan, the European Union (EU) and the United Kingdom (UK).

In officially notifying Congress, the USTR is following the pro-cedures set out in the Bipartisan Congressional Trade Priorities and Accountability Act of 2015, often referred to as Trade Promotion Authority (TPA), which requires ongoing consultations with Con-gress.

These consultations ensure that the USTR develops negotiating

• See US Trade Talks, p. 6

Proposal Would Establish Set Of General Principles For Food StandardsWashington—The US Food and Drug Administration (FDA) plans to reopen the comment period on a proposed rule, issued jointly with USDA’s Food Safety and Inspec-tion Service (FSIS) in 2005, that proposed to establish general prin-ciples that would be the first step in modernizing and updating the framework for food standards of identity.

Reopening the comment period on that proposal is part of the Department of Health and Human Services’ (HHS) semiannual regu-latory agenda, which was released this week.

The agenda is an inventory of rulemaking actions under develop-ment through HHS, offering for public review summarized informa-tion about forthcoming regulatory actions. FDA is an agency of HHS.

FDA’s fall 2018 unified agenda “includes key actions that will improve labeling and nutri-tion. We believe it’s important

to maintain the basic nature and nutritional integrity of products while allowing industry flexibility for innovation to produce more healthful foods,” said FDA Com-missioner Scott Gottlieb.

FDA is advancing rulemaking to revoke outdated standards of identity, including standards for French salad dressing and frozen cherry pie, Gottlieb said.

“This is a down payment on a comprehensive effort to modernize food standards to reduce regulatory burden and remove old-fashioned barriers to innovation,” Gottlieb explained. “To support this effort, we’ll also reopen the comment period on a proposed rule seeking to establish general principles to update the framework for stan-dards of identity.

“In addition to standards of identity, there are statutory and regulatory provisions that relate to the naming of food products,” he added.

The 2005 proposed rule had its origins a decade earlier, in 1995, when FDA and FSIS began review-ing their regulatory procedures and requirements for food standards to

Daejeon, South Korea—Inter-national butter and skim milk powder prices are slowly moving towards each other again, but as long as the market still has considerable surpluses of SMP to digest and the consumer atti-tude towards milkfat remains as favorable as it has become in the last three years, the price gap will remain “much wider” than it was prior to 2017.

That’s the conclusion of the International Dairy Federation’s (IDF) World Dairy Situation 2018 report, which was launched here this week at the World Dairy Summit. The report was put together by IDF experts from dairy-producing countries around the world under the scope of work by the IDF Standing Committee on Dairy Policies and Economics (SCDPE).

Dairy processing in 2017 was “strongly affected” by the unusual divergence of fat and protein prices in the global mar-ket, the report noted. The high commercial and public stocks of skim milk powder in the Euro-epan Union (EU) and the US discouraged SMP production (up 0.4 percent) but the “very high prices” of butter, anhydrous milk-fat and butteroil made allocating milk to the SMP/butter lines still very attractive at times.

Whole milk powder is prob-ably most affected by the high milkfat valorization, the report said. Many price-sensitive mar-kets in Africa and Asia switched to fat-filled milk powder and are expected to stick to this option as long as the price gap with whole

• See Price Gap, p. 9

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Back in the early years of yogurt, one of the standard package sizes was the eight-ounce container. Today, not only is yogurt different — Greek yogurt now dominates the category — but the average container size is more like 5.3 ounces.

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EDITORIAL COMMENT

Packaging Industry Keeps Growing, Thanks In Part To DairyThe largest-ever Pack Expo Inter-national (and co-located Health-care Packaging Expo) was held this week in Chicago, bringing together some 2,500 exhibitors and 50,000 attendees across 1.25 million net square feet of exhibit space in the massive McCormick Place.

That alone should tell you that the packaging industry is alive and well these days. Further evidence of that point came from PMMI, The Association for Packaging and Processing Technology, owner and producer of the Pack Expo portfo-lio of trade shows.

PMMI released a new report, State of the Industry US Packaging Machinery Report, that reported that the value of domestic ship-ments of packaging machinery rose 6.4 percent to $8.2 billion in 2017, and are forecast to increase at a compound annual growth rate of 4.1 percent to 2023.

Food represented the largest packaging machinery sector in 2017, accounting for 36.6 percent of shipment revenues, followed by beverage, at 22.1 percent.

These figures provide a nice reminder of how important pack-aging has been in the dairy indus-try, not just historically but also as far as the future is concerned. Three dairy categories help illus-trate this point.

First, US cheese production seems to set a new record every year; indeed, cheese production hasn’t declined since 1991, and in fact has more than doubled since then, to almost 12.7 billion pounds last year.

But a stroll through pretty much any supermarket will illus-trate that, while cheese production keeps growing, the retail packages of that cheese continue to shrink. Go back maybe three or four decades and there were very few single-serve packages of cheese on the market, primarily String cheese and products from Bel (Laughing Cow, Babybel).

Today, you can buy individually wrapped packages of pretty much every commodity-type cheese,

ranging from mild to sharp Ched-dar to Colbyand Pepper Jack. But you can also find an impressive array of specialty cheeses being packaged in single-serve packages, everything from Parmesan and Gouda to Asiago and Havarti.

Meanwhile, per capita cheese consumption continues to set new records pretty much every year, and expectations are that it will continue to grow in the future. Based on the number of single-serve packages on the market, per capita consumption will continue to grow one ounce, or three-quar-ters of an ounce, at a time.

Then there’s yogurt, a prod-uct category that exploded for a number of years but has recently flattened out. More specifically, yogurt production grew from under a billion pounds back in 1989 to a record 4.77 billion pounds in 2014 before falling short of that level in the following three years.

Back in the early years of yogurt, one of the standard package sizes was the eight-ounce container. Today, not only is yogurt different — Greek yogurt now dominates the category — but the average container size is more like 5.3 ounces.

A nice illustration of this point can be seen in the retail price data collected by the US Bureau of Labor Statistics. The BLS published aver-age prices for eight-ounce contain-ers of natural, fruit-flavored yogurt for a number of years, but stopped back in 2003. During the period in which the BLS published those prices, the average retail price of an eight-ounce container of yogurt increased from under 50 cents back in 1980 to over 80 cents in Febru-ary and March of 2003 (the final two months for which average prices were reported).

For what it’s worth, back in 2002, the last full year that BLS reported average yogurt prices, US yogurt production totaled about 2.3 billion pounds. Last year, yogurt output was just under 4.5 billion pounds, which means that a whole lot more yogurt is being

sold these days in smaller contain-ers than was the case just a decade and a half ago.

Finally, there’s fluid milk, a cat-egory that’s been in decline (as far as per capita consumption is concerned) or at best flat (as far as sales were concerned up until about seven years ago, before declining fairly dramatically start-ing in about 2011).

It’s been about two decades since single-serve bottles of milk began showing up in the dairy case, and now those bottles are pretty much everywhere. But not only have these single-serve containers not been able to boost sales, they don’t even appear to be accounting for a very high or growing percentage of sales in the declining fluid milk category.

Specifically, at least in Cali-fornia, statistics from the Cali-fornia Department of Food and Agriculture show that one-gallon containers accounted for almost 69 percent of packaged fluid milk sales in October 2017; that’s actu-ally up from about 67 percent in October 2007.

Meanwhile, pints accounted for just 0.27 percent of fluid milk sales in October 2017, compared to 1.59 percent of sales in October 2007. On the other hand, sales of half-pints (eight ounces) accounted for 10.33 percent of fluid milk sales in October 2017, up from just under 10 percent in October 2007.

While it doesn’t appear that smaller containers are going to turn around fluid milk sales, different container sizes might be helping, at least to some extent. Specifi-cally, fairlife — the joint venture of Select Milk Producers and the Coca-Cola Company — appears to be doing quite well, selling its milk in 52-ounce and 11.5-ounce single serve containers.

The packaging industry cer-tainly has a bright future, thanks in part to the dairy industry.

Cheese Reporter welcomes letters to the editor. Comments should be sent to Dick Groves, at dgroves@cheesereporter.com.

CHEESE REPORTEROctober 19, 2018 Page 3

For more information, visit www.loosmachine.com

For Dairy, Disruptions To Trade Will Have A More Measurable Impact The Longer They Last: CoBankDenver, CO—Ongoing trade negotiations and disputes continue to be a disruptive factor in both the short-term and long-term outlook for United States agriculture and its farmer cooperatives, according to the latest Quarterly US Rural Economic Review from CoBank’s Knowledge Exchange Division.

Nearly 70 percent of US agricul-ture exports are destined for coun-tries with active trade negotiations and/or trade disputes, the report pointed out.

Agricultural markets will be pressured until these issues are resolved.

The escalating trade war with China is the leading risk for US agriculture, and retaliatory actions taken by China and other trading partners have raised concerns of long-lasting effects on agricultural supply chains, the report said.

Strong growth in the US and global economies support demand in the domestic and export mar-kets through much of 2019, the report said.

But US competitiveness is cur-rently constrained by trade uncer-tainties and the elevated value of the US dollar.

At the same time, record United States yields for many of the major crop commodities are adding to supplies and limiting any signifi-cant farm price improvements over last year.

The dairy and animal protein sectors continue to benefit from strong domestic demand but will need export growth to absorb their current pace of output expansion, the report said.

Among the key factors to watch in the agricultural markets, accord-ing to the report, are:

Trade disputes: Continuing trade negotiations and potential trade disputes are the major con-cerns in the near term. The US imposition of tariffs and the retal-iatory actions by trading partners such as China have created con-cerns for agricultural supply chains in both the near term and the long term.

Domestic and global demand for US dairy commodities have shown signs of strength, but disruptions to trade will have a more measurable impact the longer they last. Mex-ico’s retaliatory tariffs on cheese remain in place for the time being, with hopes that an agreement will be signed soon.

Meanwhile, China and the United States continue to trade whey products, with both sides of the trade absorbing some of the tariffs, but if the situation persists

Ongoing Trade Disputes, Negotiations Are Disruptive Factor In Outlook For US Ag

If US growth continues near 3 percent, interest rates will climb even higher in 2019. The Euro-pean central bank and the Bank of England are likely on hold until mid-2019.

This continuing policy diver-gence among central banks, cou-pled with strong US growth, will support the value of the US dol-lar for the foreseeable future. Any significant geopolitical turmoil could create additional safe haven demand for the US dollar and push it higher.

European economic growth: The major European economies are on a steady, albeit slow, growth path. The outcome of the Brexit negotiations in early 2019 will pro-vide some insight into the future course of the European Union and the Eurozone.

Debt and fiscal issues among many of the Eurozone countries, such as Italy, remain an ongoing concern.

Repayment complications: Emerging markets will continue to benefit from a strong global econ-omy and the resulting increases in trade flows. Still, some regions will experience problems associ-ated with the volatility in currency markets. In countries with sharply deteriorating currencies, the abil-ity to repay US dollar denomi-nated debt has deteriorated and been further complicated by rising interest rates.

The report is available at www.cobank.com.

or worsens, some of that market could be lost.

Interest rate hike: The US economy is on solid footing with tax reform and increased govern-ment spending providing signifi-cant fiscal stimulus. Consumer spending remains strong and busi-ness investment should accelerate into 2019.

The one wild card is how the economy will respond to the Federal Reserve commitment to moving interest rates higher. The potential drag on economic growth and equity markets will need to be watched carefully, particularly in late 2019.

Chinese economy: Economic growth in China will likely con-tinue to hover around 6 percent despite the ongoing trade dispute with the US.

Much of the impact of reduced trade flows will be felt by other Asian economies that provide inputs to Chinese companies involved in trade. Declines in the value of China’s currency have mitigated some of the tariff impacts.

Currency volatility: The diver-gence in central bank policies is likely to widen into mid-2019 and result in continuing volatility in currency markets. The Federal Reserve raised rates in Septem-ber and will likely do so again in December.

US International Trade Commission Launches Investigation Of USMCA Impact Washington—The US Inter-national Trade Commission (USITC) has launched an investigation to assess the likely impact of the recently concluded United States-Mexico-Canada Agreement (USMCA).

The USITC’s report will assess the likely impact of the USMCA on the US economy as a whole, on selected industry sectors, and on US consumer interests.

A public hearing in connec-tion with this investigation will be held at the USITC Building in Washington, DC, on Nov. 15, 2018, and continuing the follow-ing day if necessary.

Requests to appear at the hearing should be filed with the USITC secretary no later than Oct. 29; all pre-hearing briefs and statements should be filed no later than Oct. 30; and all post-hearing briefs responding to mat-ters raised at the hearing should be filed no later than Nov. 23.

In lieu of or in addition to participating in the hearing, the USITC is inviting interested par-ties to submit written statements concerning its investigation. All submissions should be addressed to the USITC secretary, and should be received no later than 5:15 p.m. on Dec. 20, 2018.

On Aug. 31, 2018, the USITC received a letter from the US Trade Representative (USTR) stating that President Trump that day had notified Congress of his intent to enter into a trade agreement “with Mexico — and with Canada if it is willing.” On Oct. 1, 2018, the Office of the USTR published the text of the USMCA on its website.

In his Aug. 31 letter, the USTR requested that the USITC prepare the report specified in the Bipartisan Congressional Trade Priorities and Account-ability Act of 2015 (TPA Act). The TPA Act requires that the USITC submit to the President and Congress a report assessing the likely impact of the agree-ment on the US economy as a whole and on specific industry sectors, including the impact the agreement will have on the gross domestic product, exports and imports, aggregate employment and employment opportunities, the production, employment, and competitive position of industries likely to be significantly affected by the agreement, and the inter-ests of US consumers.

The public record for this investigation may be viewed on the USITC’s electronic docket, at https://edis.usitc.gov.

CHEESE REPORTERPage 4 October 19, 2018

from our archives

50 YEARS AGOOct. 18, 1968: Madison—The 1968 World Food Expo closed last Sunday night after a 10-day run with an apparently diminished attendance from last year, but the general consensus was that the entire Expo was an improved and better show in the eyes of this year’s exhibitors and visitors.

Kansas City, MO—Farm lead-ers were called on this week to fight proposed cuts in national vocational agriculture programs. Proponents of less emphasis on vocational agriculture have bol-stered their arguments by cit-ing a decrease in the number of unskilled farm workers and fewer farms.

25 YEARS AGOOct. 22, 1993: Blooming-ton, MN—Roger Schroeder of LeSuer Cheese Inc., LeSuer, MN, captured the Grand Cham-pion title here this week at the annual conference of the North Central Cheese Industries Asso-ciation (NCCIA). Schroeder had taken first place in the 500-pound barrel class. In the same category, Marvin Jewett of Bongards Creameries, Bongards, MN, earned second place over-all.

Washington—A loophole in the North American Free Trade Agreement rules of origin will allow unlimited imports of but-ter and milk powder from any-where in the world to enter the US through Mexico, warned Stewart Huber, president of the Farmers Union Milk Marketing Cooperative here this week.

10 YEARS AGOOct. 17, 2008: Washington—As a result of comments, com-plaints and “non-compliance,” USDA this week published a proposed rule that provides greater detail for livestock regu-lations of the National Organic Program, particularly as they relate to pasture and ruminant animals, including dairy cows.

Kiel, WI and Willmar, MN—Stoelting LLC and Relco LLC this week announced a joint partner-ship providing cheese makers with a complete cheese plant offering, including cheese and whey pro-cessing equipment, project man-agement, process engineering, automation engineering and site services.

For more information, visit www.ivarsoninc.com

IDFA To Consolidate Governance Structure Under One Central Organization: IDFAWashington—The International Dairy Foods Association’s (IDFA) boards of directors and member representatives voted earlier this month to consolidate the gover-nance structure of its three current constituent boards under one cen-tral organization, IDFA, according to Michael Dykes, IDFA’s presi-dent and CEO.

IDFA’s current constitu-ent boards include the National Cheese Institute (NCI), Milk Industry Foundation (MIF) and International Ice Cream Associa-tion (IICA). Those three organi-zations established IDFA in 1990.

Under the new structure, “IDFA will be more nimble, inclusive and effective in representing the inter-ests of all segments of the dairy processing industry,” Dykes said. The change will take effect Jan. 1, 2019.

The new leadership structure will have an IDFA Executive Council with 15 to 25 members, focused on the business and opera-tions of the association, Dykes explained. It also will feature five Industry Segment Boards — rep-resenting cheese, fluid milk, ice cream, yogurt and cultured prod-ucts, and dairy-derived ingredients

— that will drive policy and strat-egy, with the option to add boards as the industry continues to evolve and product categories increase.

IDFA will operate under one set of bylaws and financial reporting requirements, as well as one bud-get.

Dykes listed four reasons for the change:

1) Pursuing priorities as one advocacy organization will “enhance the effectiveness of our voice in Washington.”

2) Establishing Industry Seg-ment Boards will promote contin-ued member engagement and allow flexibility for new members and product categories in the future.

3) Creating a universal structure with room for growth will allow IDFA to support the changing needs of individual companies and the dairy foods industry overall.

4) Simplifying the current governance will allow IDFA to increase operational efficiency.

Under the new structure, the IDFA Executive Council will con-duct the official business of the association and carry out its fidu-ciary responsibilities.

The Industry Segment Boards will maintain the prioritizing and

planning functions of the cur-rent constituent boards, providing strategic vision, policy direction and leadership on segment-spe-cific issues. Each of these boards will conduct business without the administrative process required of a formal board and will coordinate with the IDFA Executive Council to establish its own operating prin-ciples.

Dairy processor members and Gold Business Partners will be eli-gible for seats on the IDFA Execu-tive Council and Industry Segment Boards. IDFA will also continue to offer a variety of opportunities for member participation, Dykes said.

An interim nomination and governance committee — con-sisting of the chairman of IDFA’s board of directors, along with offi-cers of NCI, MIF and IICA — will lead the process for selecting the IDFA Executive Council members and the chairs and vice chairs of the Industry Segment Boards. The committee will select the new leaders for the Executive Council by the end of this year, so they will be in place and prepared to lead starting on Jan. 1, 2019.

Questions should be directed to Tom Wojno, IDFA senior vice president of innovation and mem-ber advancement, at twojno@idfa.org; or (202) 220-3510.

St. Simons Island, GA—Three square meals is an outdated con-cept according to Millennials, who prefer snacking and more specifi-cally, snacking on cheese.

A new national survey of 2,000 adults commissioned by Farm Rich found that 86 percent of Ameri-cans have eaten snacks in place of meals.

Only 27 percent today eat three square meals a day, opting to often graze on a variety of snacks instead.

The traditional three square meals a day is becoming a thing of the past for nearly 75 percent of Americans, who instead are opting for more “snack meals” for conve-nience, variety and to add extra fuel to their day.

Three Square Meals ‘A Thing Of The Past’ As Snacking On The Rise; Cheese Number One Snack

Research found the average per-son now eats two meals and three snacks each day.

Cheese is the top snack food tak-ing place of regular meals, followed by crackers, fruit, chips, nuts, veg-gies, yogurt, sweets, pretzels and frozen Mozzarella sticks.

49 percen of the respondents said they turn to snack meals due to a lack of time for planning and prep, 35 percent say they eat snack dinners to reduce food waste.

CHEESE REPORTEROctober 19, 2018 Page 5

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

Global Dairy Trade Price Index Falls 0.3%; Only Butter, AMF, Lactose Prices IncreaseAuckland, New Zealand—The price index on this week’s semi-monthly Global Dairy Trade (GDT) dairy commodity auction declined 0.3 percent from the pre-vious auction, held two weeks ago.

The GDT price index hasn’t increased since the second trad-ing event in May. Since then, it has declined nine times and was unchanged once.

In this auction, which featured 183 participating bidders and 137 winning bidders, prices were higher for butter, anhydrous milkfat and lactose; lower for Cheddar cheese, whole milk powder (WMP), and rennet casein; and unchanged for skim milk powder (SMP).

Results from this week’s auc-tion, were as follows:

Cheddar: The average win-ning price was $3,404 per metric ton ($1.54 per pound), down 1.8 percent. Average winning prices were: Contract 1 (November), $3,400 per ton, down 2.8 percent; Contract 2 (December), $3,432 per ton, down 0.3 percent; Con-tract 3 (January 2019), $3,382 per ton, down 3.2 percent; Contract 4 (February), $3,398 per ton, down 1.7; and Contract 5 (March), $3,391 per ton, down 2.6 percent.

SMP: The average winning price was $1,977 per ton (89.7 cents per pound), unchanged. Winning prices were: Contract 1, $2,040 per ton, down 2.4 per-cent; Contract 2, $1,984 per ton, up 0.3 percent; Contract 3, $1,953 per ton, down 0.9 percent; Con-tract 4, $1,965 per ton, down 0.9; Contract 5, $2,004 per ton, up 2.2; and Contract 6 (April), $2,012 per ton, up 2.3 percent.

WMP: The average winning price was $2,729 per ton ($1.24

per pound), down 0.9 percent. Average winning prices were: Contract 1, $2,713 per ton, down 2.1 percent; Contract 2, $2,762 per ton, down 0.7 percent; Contract 3, $2,673 per ton, up 0.8 percent; Contract 4, $2,698 per ton, down 1.5 percent; Contract 5, $2,707 per ton, down 2.4; and Contract 6, $2,724 per ton, down 4.2 percent.

Butter: The winning price was $4,114 per ton ($1.87 per pound), up 2.4 percent. Average winning prices were: Contract 1, $4,360 per ton, up 2.8 percent; Contract 2, $4,220 per ton, up 5.1 percent; Contract 3, $3,992 per ton, up 0.9 percent; Contract 4, $3,995 per ton; Contract 5, $4,005 per ton, down 0.4 percent; and Contract 6, $4,030 per ton, down 3.4 percent.

Anhydrous milkfat: The aver-age winning price was $5,106 per ton ($2.32 per pound), up 1 per-cent. Average winning prices were: Contract 1, $5,133 per ton, down 2.7 percent; Contract 2, $5,219 per ton, up 2.8 percent; Contract 3, $5,040 per ton, up 1.4 percent; Contract 4, $5,045 per ton, up 0.2 percent; Contract 5, $5,063 per ton, unchanged; and Contract 6, $5,155 per ton, down 2 percent.

Rennet casein: The average winning price was $5,426 per ton ($2.46 per pound), down 1.7 per-cent. Average winning prices were: Contract 1, $5,530 per ton, down 1.9 percent; Contract 2, $5,615 per ton, up 0.7 percent; Contract 3, $5,340 per ton, down 3.5 per-cent; Contract 4, $5,295 per ton, down 3.6 percent; and Contract 5, $5,190 per ton, down 4.8 percent.

Lactose: The average winning price was $926 per ton (42 cents per pound), up 1.5 percent. That was for Contract 2.

USDA Seeks Cheese(Continued from p. 1)

more information on the Cheddar cheese solicitation, contact Jenny Babiuch, at (816) 823-1145; email jenny.babiuch@ams.usda.gov.

US Secretary of Agriculture Sonny Perdue in late July had announced that USDA would take several actions to assist farmers in response to trade damage, includ-ing producer payments under the Market Facilitation Program, a Trade Promotion Program to help boost agricultural exports, and a Food Purchase and Distribution Program, through which AMS will purchase unexpected surpluses of commodities, including milk, for distribution to food banks and other nutrition programs.

Under the Food Purchase and Distribution Program, AMS will purchase up to $1.2 billion in commodities, including $84.9 mil-lion in dairy products. Products purchased will be distributed by USDA’s Food and Nutrition Ser-vice (FNS) to participating states, for use in TEFAP and other USDA nutrition assistance programs.

AMS will buy affected products in four phases. The products pur-chased can be adjusted between phases to accommodate changes due to: growing conditions; prod-uct availability; market conditions; trade negotiation status; and pro-gram capacity.

AMS is purchasing known commodities first. By purchasing

in phases, procurements for com-modities that have been sourced in the past can be purchased more quickly and included in the first phase.

USDA this week also issued a solicitation seeking bids for 1,572,480 pounds of Mozzarella, for delivery in November and December, for use in the National School Lunch Program and the Child and Adult Care Feeding Program. Offers are due by 9:00 a.m. Central time on Friday, Oct. 26, 2018. For more information, contact Mary Mahoney, at (816) 926-2501; email mary.mahoney@ams.usda.gov.

USDA also has issued a solici-tation seeking bids for 756,000 pounds of String cheese for deliv-ery in January, February and March 2019.

The String cheese will be used in the National School Lunch Pro-gram and Child and Adult Care Feeding Programs. Offers are due by 9:00 a.m. Central time on Tues-day, Oct. 23. More information is available from Mary Mahoney.

Finally, USDA is seeking a total of 601,662 pounds of high protein nonfat blueberry strawberry and vanilla yogurt for use by schools participating in the National School Lunch Program. The deliv-ery period is January, February and March 2019. Offers are due by 9:00 a.m. Central time on Tuesday, Oct. 23. For more information, contact Cheryl Davis, at (816) 926-3377; email cheryla.davis@ams.gov.

CHEESE REPORTERPage 6 October 19, 2018

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RECOGNITIONNDB Releases 2018-19 Scholarship WinnersRosemont, IL—The National Dairy Promotion and Research Board (NDB) announced the recipients of its annual $2,500 scholarships, and a student that will receive its $3,500 James H. Loper Jr. Memorial Scholarship.

Tony Rice, a Penn State University student from Mount Pleasant Mills, PA, earned the 2018-19 James H. Loper Jr. Memorial Scholarship.

Scholarships went to: Christy Achen, Utah State Univer-sity; Sanne de Bruijn, Rebekka Paskewitz and Andrew James Wilwerding, South Dakota State University; Tiffany Flat-man, Brigham Young Univer-sity; Alexandra Gambonini and Elisabeth Regusci, Cal Poly State University; Kathryn Lyne Gardner, University of Arkansas; Morgan Krause, Haely Leiding and Kayla Leiding, University of Minnesota-Twin Cities; and Dustin Winston, University of Idaho.

Eligible majors for NDB’s scholarship program include journalism, communications/public relations, marketing, busi-ness, economics, nutrition, food science or agriculture education.

IARLAITH SMYTH has been appointed president of Orna Foods North & Latin America. Smyth joined Ornua Foods North America in 2011 as national sales manager. Two years later, he was promoted to vice president, responsible for growing the distribution of Orna Foods’ Kerrygold brand. Before joining Ornua, Smyth held senior positions with Johnson Broth-ers and Danone Baby Nutrition in Ireland. As president, Smyth will lead the growth and devel-opment of Ornua’s branded port-folio of premium grass-fed Irish dairy products, which includes both Kerrygold and Dubliner.

BOB COX has joined Food Safety Net Services (FSNS) as senior vice president of human resources. Cox most recently held the position of senior vice president, human resources at HVHC/Visionworks.

Land O’Lakes, Inc. board chairman PETE KAPPELMAN was named Dairyman of the Year by the World Dairy Expo earlier this month in Madison, WI. Kappelman owns and operates Meadow Brook Dairy in Two Rivers, WI, and will celebrate 23 years of service on the Land O’Lakes board in early 2019.

PERSONNEL

US Trade Talks(Continued from p. 1)

positions with the benefit of Con-gress’ views. USTR will also pub-lish notices requesting the public’s input on the direction, focus and content of the trade talks.

In accordance with TPA, USTR will publish objectives for the negotiations at least 30 days before formal negotiations begin.

The USTR intends to initiate negotiations with Japan and the EU as soon as practicable, but no later than 90 days from the date of the notices it sent to Congress. The USTR intends to initiate talks with the UK as soon as it is ready after it exits from the EU on Mar. 29, 2019.

Japan last year was the fourth-leading market for US dairy exports, on a value basis, trailing only Mexico, Canada and China. US dairy exports to Japan last year were valued at $291 million. They had reached a record high of $408.5 million in 2014.

Also in 2017 Japan was the number three market for US cheese exports on a volume basis, trailing only Mexico and South Korea. US cheese exports to Japan last year totaled 71.2 million pounds.

Japan maintains high tariffs that hinder US exports of ag and other food products, including dairy, according to the USTR’s 2018 National Trade Estimate Report on Foreign Trade Barriers, which was released earlier this year. One example: tariffs of 22.4 to 40 per-cent on various types of cheese.

By contrast, the US runs a dairy trade deficit of over $1 billion annually with the EU. Last year, for example, US dairy exports to the EU were valued at $116 mil-lion, while imports of dairy prod-ucts from the EU were valued at

just under $1.5 billion, for a deficit of $1.38 billion.

Those dairy imports from the EU last year included cheese (val-ued at $915.1 million) as well as a variety of other dairy products (valued at $576.5), including but-ter, casein and caseinates, yogurt, ice cream, milk protein concen-trate, and food preparations.

“The EU, for example, seeks to

monopolize the use of certain cheese... names. These nontariff barriers effectively prevent US

cheese makers from accessing growing markets in other

countries.”

—Michael Dykes, IDFA

US exporters and investors face “persistent barriers” to enter-ing, maintaining, or expanding their presence in certain sectors of the EU market, according to the USTR’s 2018 report on for-eign trade barriers. For dairy, these include the EU’s quality schemes, such as GIs, as well as somatic cell count requirements.

EU organizations have criticized certain US regulations that they feel create obstacles to higher EU exports to the EU; these include the Pasteurized Milk Ordinance and the dairy import assessment.

Last year, US dairy exports to the UK were valued at $8.8 mil-lion, while US dairy imports from the UK (primarily cheese) were valued at $50.4 million.

The aim of the US in negotia-tions with Japan, the EU and the

UK is to address both tariff and non-tariff barriers and to achieve fairer, more balanced trade, Ligh-thizer noted. The US recognizes that “effective implementation and enforcement of the commitments made by our trading partners under our trade agreements are vital to the success of those agreements, and we will seek provisions that ensure effective implementation and enforcement.”

“We are committed to conclud-ing these negotiations with timely and substantive results for Ameri-can workers, farmers, ranchers, and businesses,” Lighthizer said.

The IDFA is pleased that the Office of the USTR “has taken another positive step in promoting strong trade policies” for the US, and urges the USTR to “negoti-ate for greater market access levels for dairy in Japan, the UK and the EU,” said Michael Dykes, IDFA’s president and CEO.

“The EU, for example, seeks to monopolize the use of certain cheese and other food names that the United States and many other countries regard as generic by improperly using geographical indications. These nontariff barri-ers effectively prevent US cheese makers from accessing growing markets in other countries,” Dykes continued.

The American Soybean Asso-ciation is hopeful that the admin-istration’s formal notice that it will enter trade negotiations with the EU, Japan and the UK as soon as mid-January will make a settle-ment with China a plausible next step. Concluding the US-Mexico-Canada Agreement and success with subsequent trade negotia-tions with Japan, the EU and other countries would mean opportuni-ties to potentially increase US soy and livestock product exports.

CHEESE REPORTEROctober 19, 2018 Page 7

The Ohio Swiss Cheese Association Would Like To Thank All The Participants In The Annual OSCA Cheese Contest & Auction.

This year's OSCA cheese auction raised $23,487.Please join us in thanking the following companies for their generous support:

Hummel GroupBerlin, Ohio$4,228.00

Cambridge PackagingCambridge, Ohio

$2,717.00

McElroy PackagingWooster, Ohio

$1,275.00

Troyer’s Trail Bologna

Dundee, Ohio$750.00

Supply OneCleveland, Ohio

$600.00

Troyer CheeseMillersburg, Ohio

$3,458.00

Chr. HansenMilwaukee, Wisconsin

$1,500.00

Cryovac Duncan, South Carolina

$1,200.00

Weaver Furniture Sugarcreek, Ohio

$700.00

Pleasant Valley Concrete

Sugarcreek, Ohio$500.00

Walnut Creek CheeseWalnut Creek, Ohio

$3,234.00

Superior TankStrasburg, Ohio

$1,175.00

R.J. Matthews & CompanyMassillon, Ohio

$1,000.00

Superior BasementSystems

New Philadelphia, Ohio$650.00

Commercial & SavingBank

Sugarcreek, Ohio$325.00

Thank YouThank You

Proceeds are shared between the Ohio Swiss Cheese Association and the Ohio Swiss Festival.

Reserve Champion: Pearl Valley CheeseAuction Buyer: Hummel Group

Grand Champion: Guggisberg CheeseAuction Buyer: Walnut Creek Cheese

Senate Bill Would Provide Emergency Payments To Dairy FarmersWashington—US Sen. Bernie Sanders (D-VT) introduced legis-lation last week to provide emer-gency paymentts to dairy farmers throughout the US.

In developing criteria for the issuance of emergency payments, USDA would have to give priority to a dairy producer: located in a state with a high cost of milk pro-duction compared to other states; or on a farm with a high cost of milk production based on the size of the farm.

The emergency payment could not be less than $10,000 but not greater than $20,000 per dairy operation.

“Farmers clearly need our help now. This is a matter of survival,” Sanders said.

“However, while this bill will provide temporary relief, ultimately we need a sustainable, long-term solution to ensure farmers receive a fair price for the high-quality milk they produce,” Sanders con-tinued. “To my mind, that has got to include managing the supply of milk.

“We must also take a hard look at consolidation in dairy process-ing and distribution, and whether we need stronger antitrust laws to protect consumers and producers alike,” he added.

Sanders also sent a letter Thurs-day to US Secretary of Agriculture Sonny Perdue, asking him to use all existing authority under Section 32 of the Agricultural Adjustment Act to make regular purchases of dairy products to be distributed through The Emergency Food Assistance Program (TEFAP).

When more than 40 million Americans are living in poverty, hunger remains a daily reality for millions of families, Sanders noted in his letter. According to analysis, TEFAP supplied one in five of all meals distributed by hunger-relief organizations in 2016 alone.

In order to provide the assis-tance needed for food banks to meet the needs of their commu-nities, as well as to help support the domestic dairy industry, Sand-ers requested that USDA expand its current use of authority under Section 32 to purchase additional dairy products.

Sanders also requested that USDA make purchases at regu-lar intervals throughout the year, so that food banks and processors alike can better accommodate and plan for these purchases.

And he asked that Perdue work with states to determine which dairy products would be most suit-able to address their needs and offer flexibility in terms of volume of products states can accept.

Packaging Machinery Sales Expected To Grow 4.1% Through 2023Chicago—The value of domestic shipments of packaging machin-ery increased 6.4 percent to $8.2 billion last year, and are forecast to grow at a compound annual growth rate (CAGR) of 4.1 per-cent to 2023, according to the new State of the Industry US Pack-aging Machinery Report by PMMI, the Association for Packaging and Processing Technology.

Food represented the larg-est packging machinery sector in 2017, accounting for 36.6 percent of shipment revenues, followed by beverage, at 22.1 percent. The

pharmaceuticals sector is expected to grow the fastest to 2022, at a CAGR of 3.5 percent.

While the largest machinery type category in 2017 was case handling at 15.1 percent, bottling line machinery is forecast to grow the fastest to 2023, with a CAGR of 5.3 percent.

E-commerce has influenced much of this market growth, with the first quarter of 2018 e-com-merce sales accounting for 9.5 per-cent of total retail sales, according to a recent PMMI report.

“Across all demographics, from Baby Boomers to Generation Z, a growing number of people are purchasing a large portion of their products online with greater fre-quency than ever before,” said

Paula Feldman, director of business intelligence, PMMI. “E-commerce operations need advanced equip-ment in order to keep up with demand, manufacturers are invest-ing in smarter, automated func-tionality to achieve a greater level of machine flexibility.”

PMMI is the owner and pro-ducer of the Pack Expo portfolio of trade shows.

The largest Pack Expo Interna-tional and co-located Healthcare Packaging Expo ever were held this week at Chicago’s McCormick Place.

For more information on the State of the Industry Packaging Machinery Report, as well as other PMMI offerings, visit www.pmmi.org.

CHEESE REPORTERPage 8 October 19, 2018

Barrel Cheese From Bongards’ Perham Plant Named Grand Champion Of NCCIA ContestCheese Contest Auction Raises Over $10,00 For Student ScholarshipsSioux Falls, SD—Bongards’ Creameries, Perham, MN, was named Grand Champion of the North Central Cheese Industries Association (NCCIA) annual cheese contest here last week.

Bongards’ Justin Larson’s 500-pound Barrel Cheese took top honors over the 40-pound Ched-dar block and Miscellaneous cheese categories.

Trent Sterry of Associated Milk Producers, Inc. (AMPI) of Blair , WI, was named top Ched-dar 40-pound block manufacturer, while Andy Schoolmeesters of First District Association, Litch-field, MN, was named winner of the Miscellaneous cheese category.

A total of $9,275 was raised to support student scholarships by the NCCIA through the annual cheese competition auction and approximately another $1,500 was raised through silent auction.

The North Central Cheese Industries Association auction started 13 years ago and over that

time has raised $85,311 for stu-dent scholarships funds, which have gone to students at the Uni-versity of Minnesota, Iowa State University, South Dakota State University, and the University of Wisconsin-River Falls.

First, second and third place winners in the NCCIA cheese contest with the auction purchas-ers of each cheese are as follows:

40# CHEDDAR BLOCKFirst Place: Trent Sterry, Asso-ciated Milk Producers, Inc., Blair, WI

Auction buyers of the first place cheese included Nutricepts, $550; Membrane Process & Controls, $550; DuPont, $275; Agropur Ingredients, $275; DSM Food Spe-cialties, $275; and Milk Specialties Global, $275.Second Place: Steve Voss, Asso-ciated Milk Producers, Inc., Roch-ester, MN

Buyers of the second place cheese included GEA Westfalia, $500; Nutricepts, $400; Dairy Farmers of America, $400; DSM Food Specialties, $200; and Arrow Process Systems, $200.

Third Place: Roger Schroeder, Agropur, LeSueur, MN

Buyers of the Agropur cheese included Advanced Process Tech-nologies (APT), $900; and Nel-son-Jameson, Inc., $400.

BARREL CHEESEFirst: Justin (JR) Larson, Bongards’ Creameries, Perham, MNSecond Place: Andy School-meesters, First District Associa-tion, Litchfield, MNThird Place: Jeff Payne, Bongards’ Creameries, Perham, MN

MISCELLANEOUS CHEESEFirst Place: Andy Schoolmeesters, First District; Cheddar with Rose-mary and Garlic

The first place cheese was pur-chased by Nelson-Jameson for $375.Second: Caves of Faribault, Farib-ault, MN; St. Pete’s Select Blue cheese.

Ecolab and Milk Specialties Global both paid $375 apiece for the second place cheese.

Third Place: Kim Blain, Agropur, Hull, IA, Colby-Jack cheese

Buyers of the third place cheese included Chr. Hansen, $975; Shambaugh & Son, $400; Trilogy Essential Ingredients, $325; Arrow Process Systems, $200; and Nel-son-Jameson, $150.00.

Tetra Pak/Twiford DonationRJ Twiford of Tetra Pak repur-chased the 2016 second-place Cheddar cheese winner, for which he donated last year, for $900.

Twiford, as he has in the past, donated the cheese orginally made in 2014 by Kevin Schwartz of Land O’Lakes, back to the NCCIA, and the cheese will be auctioned off again at the NCCIA annual con-ference next October.

The contest also auctioned off seven baskets in a silent auction for which the buyers included; Agro-pur Ingredients, Cheese Reporter; Chr Hansen, Inc.; Neogen; Prairie Farms Dairy/Swiss Valley; Sham-baugh & Son and Wisconsin Cheese Makers Association.

NCCIA Cheese Contest Winners: Accepting on behalf of Justin Larson, Bongards’ Creamer-ies, the winner of the North Central Cheese Industries Association cheese contest, was Daryl Larson (center in photo), and Brent Jewett (right), of Bongards’. Presenting the award was Tom Berry, AMPI, Rochester, MN and incoming president of the NCCIA.

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CHEESE REPORTEROctober 19, 2018 Page 9

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Price Gap(Continued from p. 1)

milk powder remains as big as it is currently.

Production of whole milk pow-der nevertheless recovered some-what in 2017 (up 3.3 percent) after a strong decline in 2016 (down 7 percent). Chinese import demand for WMP was forcful, which pulled a lot of milk into the WMP pro-cessing lines in its main supplying regions New Zealand (up 4.5 per-cent) and the EU (3.1 percent). Even the US has started to become a producer of some significance in WMP (up 24.7 percent).

Global cheese production increased by 2.6 percent in 2017, which turned cheese once again into the “main engine of dairy demand growth,” the report said. Cheese is the only product where demand consistently grows across all major markets, although pro-duction growth in the EU was rela-tively modest at 0.7 percent. Some of the key production countries, such as France, the Netherlands, Germany and Ireland saw their cheese production decline.

In general, however, key export regions like Oceania, the US and the EU will see their cheese pro-duction grow in the years to come as they have to keep up with accel-erating import demand in Asia, according to the report. Judging by the large number of Mozzarella capacity expansions in Oceania and the EU especially, more and more milk will likely gravitate towards the cheese vats in these regions.

In the Western world, 2017 marked the end of the boom years of cheese and butter consump-tion, the report said. US butter consumption still increased by a modest 0.5 percent, but EU con-sumption went backwards by 1.7 percent. US cheese consumption still increased by 2.3 percent, below the three-year average of 3.4 percent, but EU consumption declined by 0.1 percent.

Asia is starting to become the new engine of cheese consumption growth, with China and South Korea being the main representa-tives, the report noted.

Liquid milk consumption remained stagnant in 2017. Even in China, liquid milk demand hardly increased and therefore demand growth in the remaining emerging markets, such as India, Turkey, Brazil and Mexico, was no longer sufficient to compensate for the decline in the saturated mar-kets of the EU and the US, where competition from plant-based bev-erages is building.

Consumer preferences in the liquid dairy category are increas-ingly shfiting towards fermented drinks, the report pointed out. Yogurts, yogurt drinks and other fermented drinks still experienced

steady demand growth in all key markets (up 2.5 percent in 2017).

In 2017, China regained a lot of its strength as the number one dairy importer in the world after local stock positions normalized in 2016, while Russia remained closed for business out of most export regions except Latin America.

In the absence of these major disturbances, global dairy trade in total prospered, the report said. Within the portfolio, however, different developments could be observed. Trade volumes increased above the long-term average in skim milk powder (up 10.3 per-cent) and cheese (up 4.1 percent), whereas whole and semi-skimmed milk powder and butter and but-teroil trade (down 3.4 percent and down 13.9 percent, respectively) was less impressive in 2017.

Milk allocation priorities noted earlier also affected the export port-folio of the key exporting regions in the world, the report said. Since China’s import portfolio is becom-ing more diversified, with less emphasis on WMP and growing imports of UHT milk, Mozzarella and cream cheese, its main sup-plier, New Zealand, is changing its export focus accordingly.

Similarly, the report said it is interesting to observe a move away from the massive focus on dried milk capacity in the post-quota

years in the EU back towards cheese in general and Mozzarella in particular.

Going forward, “we may see some interesting shifts in trade flows in 2018 following the tariff wars between the US and some of its trading partners,” the report said. “Some old doors will be closed and some new doors may be opened for individual exporters, but the net effect on trade volumes is expected to be small in 2018.”

In the long run, however, the return to high trade tariffs is a diversion from the long-term trend of trade liberalization.

Dairy imports by oil exporters are expected to improve somewhat due to appreciating oil prices in 2018, but are expected to remain weaker than in 2015 and 2016.

Profitable milk prices through-out most of 2017 propelled above-average production growth in 2017, the report said. Despite the weak milk production performance of several “heavyweights,” includ-ing New Zealand and Germany, global milk production rose 2.2 percent last year.

In 2018, the report said it will be interesting to see whether global milk production will be able to beat the long-term average of 2 percent for two years in a row.

The report is available from IDF, at https://store.fil-idf.org.

Box Carr Handmade Cheese Takes Best Of Show At NC State FairRaleigh, NC—Box Carr Hand-made Cheese of Cedar Grove, NC, won Best of Show and Best of North Carolina here last week at the North Carolina State Fair Cheese Competition.

First, second and third place winners in all 16 categories are:

CheddarSecond place: Blue Ridge Moun-tain Creamery, Fairview, Flat Creek Cheddar ClothboundSecond: Guernsey Girl Creamery, Shelby, Milk House Cheddar

FetaFirst place: Paradox Farm Cream-ery, West End, Feta CompleteSecond: Buffalo Creek Farm & Creamery, Germantown, BrinedSecond place: Buffalo Creek Farm, Marinated Garlic

Flavored Hard CheeseFirst place: Guernsey Girl Cream-ery, Herb CheddarSecond place: Box Carr Hand-made, Red BudThird place: Blue Ridge Mountain Creamery’s Asiago Peppercorn

Flavored Soft CheeseFirst place: Celebrity Dairy, Siler City, Party SerendipitySecond place: Guernsey Girl Creamery, Apple PieThird: Guernsey Girl, Pepper Cherry

Smear Ripened CheeseFirst: Box Carr Handmade, CampoFirst: Box Carr Handmade, LissomeFirst place: Chapel Hill Creamery, Chapel Hill, DanzigerSecond place: Blue Ridge Moun-tain Creamery, The RichardThird place: Blue Ridge Mountain Creamery, Lexington Ave Funk

Open Class Soft RipenedFirst place: Blue Ridge Mountain Creamery, Common BearFirst: Box Carr, CottenbellSecond: Box Carr, RobiolaSecond place: Chapel Hill Cream-ery, Carolina Moon

Open Class Soft & SpreadableFirst place: Chapel Hill Creamery, Fresh Farmer Cheese

Open Class Semi Soft CheeseFirst: Chapel Hill, Hickory Grove

Open Class Hard CheeseFirst: Chapel Hill, Calvander

Fresh Goat Milk ChevreFirst place: Buffalo Creek FarmSecond place: Celebrity Dairy

Fresh Goat Chevre, UnflavoredFirst: Celebrity Dairy, Pure ChevreSecond place: Paradox CreamerySecond place: Buffalo Creek Farm

Aged Goat Milk CheeseFirst: Celebrity Dairy, Silk HopeSecond: Celebrity Dairy, CrottinSecond: Paradox, Guy Noir

American OriginalFirst: Blue Ridge, Sassy BlueFirst place: Box Carr, NimbleSecond place: Blue Ridge Moun-tain Creamery, Sunset Blue.

CHEESE REPORTERPage 10 October 19, 2018

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Chr. Hansen Acquires Austrian Rennet Supplier HundsbichlerHorsholm, Denmark—Chr. Hansen this week announced the acquisition of Austria-based dairy ingredient supplier Hunds-bichler.

The acquisition will further expand Chr. Hansen’s enzyme production and presence into the traditional segments of spe-cialty cheeses, Chr. Hansen said. Hundsbichler’s products are widely recognized for high quality, and this acquisition will enable Chr. Hansen to offer cheese makers a second-to-none product portfolio in the animal rennet space.

The acquisition confirms Chr. Hansen’s commitment to the traditional segment of animal-derived coagulants for its cheese industry customers, the company said. The market for traditional and specialty cheese continues to develop, and the acquisition of Hundsbichler ensures that Chr. Hansen’s Food Cultures and Enzymes business is well positioned to reap future growth opportunities.

“We’re very proud to take on Hundsbichler’s high quality products and will do our utmost to deliver the same exceptional service levels that the customers have been used to,” commented Michael Fooken, Chr. Hansen’s senior commercial development manager.

Hundsbichler, founded in 1947 and headquartered in Langkampfen, Austria, is among the leading suppliers of animal rennet to the cheese industry.

Key products include the BioRen® brand ranging from mainstream products to more specialized items used for pro-duction of typical, traditional cheeses.

Today, Hundsbichler said it supplies more than 80 percent of the natural rennet used in Aus-tria. Its products are exported to Switzerland, Italy, France, Ger-many, Greece, Cyprus, Syria, Slovenia, the Czech Republic and many other countries.

Chr. Hansen sees a strong fit between its dairy business and Hundsbichler, which is expected to provide attractive opportuni-ties for synergies within sales, including cross-selling, supply chain improvements and inno-vation.

These synergies are expected to be achieved in the next two years.

The assets of Hundsbichler were acquired by Chr. Hansen for an undisclosed amount and comprise customers, products, trademarks and production equipment.

Standards Proposal(Continued from p. 1)

the list of proposed general prin-ciples for both agencies, the first four stated the purpose or function of a food standards. These principles were the most fundamental principles addressing consumer protection from an eco-nomic standpoint. Therefore, the agencies would have denied a peti-tion to establish a food standard if the proposed standard was not consistent with all of the general principles that applied to the pro-posed standard.

The first general principle would make it explicit that FDA’s purpose for a food standard is to promote honesty and fair dealing in the interest of consumers. To promote honesty and fair dealing in the interest of consumers and to protect the public, the pro-posed rule would have stated that the food standard should reflect the essential characteristics of the food.

For example, the essential char-acteristics of a particular type of cheese may include the bacte-rial culture used, the processing method, and the fat and mois-ture content that contribute to the unique characteristics of that cheese and the basic nature of that cheese is that it is a milk-derived food of a certain form and consis-tency.

In addition to protecting the consumer, the next three proposed general principles would have pro-moted clear and straightforward requirements for food manufactur-ers.

They would also have promoted, to the extent feasible, flexibility in food technology.

One section of the proposed rule would have stated that the food standard should contain clear and easily understood requirements to facilitate compliance by food man-ufacturers.

Another section would have provided that the food standard should permit maximum flexibil-ity in the food technology used to prepare the standardized food, so long as that technology does not alter the basic nature or essential characteristics, or adversely affect the nutritional quality or safety of the food.

These provisions would also have stated that the food standard should provide for any suitable, alternative manufacturing pro-cess that accomplishes the desired effect and should describe ingredi-ents as broadly and generically as feasible.

The general principles would also have promoted uniformity between federal food standards and any international standards for the same food. If a food standard pre-sented in a petition was different from the requirements in a Codex

standard for the same food, FDA and FSIS proposed that the peti-tion should specify the reasons for these differences.

The next six proposed general principles aimed to promote sim-plicity, brevity, and consistency in food standards.

FDA and FSIS accepted com-ments on the proposed rule for three months, and received com-ments from several dairy organiza-tions and companies, well as from other food companies and organi-zations. The proposal was never finalized.

‘Healthy’ Claim On Food LabelsFDA is also working on updating the definition of the claim “healthy” on food labels so it reflects current nutrition guidelines and to encour-age its use, Gottlieb said.

The agency will propose to update the existing nutrient con-tent claim definition of “healthy” based on the food groups recom-mended by the Dietary Guidelines for Americans and also include nutrients to limit to ensure that foods bearing the claim can help consumers build more healthful diets to reduce their risk of diet-related chronic diseases.

The use of a standard icon or sym-bol to denote the claim “healthy” on food labels, and updating the definition of “healthy” on labels, is one part of FDA’s recently launched Nutrition Innovation Strategy, and the agency has received a number of comments on the idea.

The International Dairy Foods Association (IDFA) encouraged FDA to take a two-step process with respect to “healthy” claims, first updating the definition and then considering standardized ways to communicate that a particular food is healthy on the label or in labeling, including use of a symbol or icon.

To the extent FDA proposes a standardized approach, any such icon or symbol should, among other things, “be voluntary,” IDFA said.

A number of consumer, nutrition and other organizations — includ-ing the Academy of Nutrition and Dietetics, American Public Health Association, Consumers Union, Consumer Federation of America and Center for Science in the Public Interest — urged FDA to strengthen the definition of “healthy” and review a full range of options for front-of-package nutri-tion labeling programs.

While an FDA-defined “healthy” logo holds potential to be useful for consumers, CSPI, in comments filed separately, said it is concerned that a standardized “healthy” sym-bol, available to manufacturers for voluntary use, would be less effec-tive at addressing public health needs than a more comprehensive symbol system that conveys both the healthier and less healthy attri-butes of foods.

CHEESE REPORTEROctober 19, 2018 Page 11

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FDA Sued Over Failure To Designate, Establish Requirements For High-Risk FoodWashington—The Center for Food Safety (CFS) and Center for Environmental Health (CEH) filed a lawsuit Monday against the US Food and Drug Administration (FDA) over the agency’s alleged failure to designate and establish reporting requirements for produc-ers of foods that are “high-risk” for foodborne illness outbreaks.

The Food Safety Modernization Act (FSMA), which was signed into law in early 2011, granted FDA new enforcement capacity, such as mandatory recall author-ity, and the ability to prescribe additional recordkeeping require-ments, such as for facilities han-dling “high-risk” foods, the lawsuit stated. But the positive public health outcomes that were the original intent behind FSMA “can only be realized if the FDA com-plies with the law, by promulgating regulations, completing required actions, and enforcing provisions mandated by Congress.”

By 2012 FDA missed at least seven statutory congressio-nal deadlines for promulgating FSMA’s implementing food safety regulations, the lawsuit continued. Because of this failure to comply with Congress’s express mandates, CFS and CEH brought suit to compel FDA to promulgate the required regulations.

The court held that the FDA’s failure to promulgate the man-dated regulations by its statutory deadlines constituted a failure to act under the Administrative Pro-cedure Act (APA) and unlawful withholding of the regulations in violation of FSMA and the APA. The court then granted injunctive relief, establishing a timeline for FDA to promulgate final regula-tions. After FDA’s motion for a stay pending appeal was denied, the parties settled and established deadlines for the completion of the rulemakings in a consent decree approved by the court.

Since that proceeding, FDA has failed to meet at least two other important food safety FSMA action deadlines not at issue in that litiga-tion, the lawsuit stated. At issue in this matter are these separate agency actions, by which FDA was mandated to classify and designate which foods that are classified as “high-risk” for foodborne illness purchases, and to create additional recordkeeping requirements for facilities handling such foods.

In an effort to expedite the pro-cess for tracing food, and therefore prevent the spread of foodborne illnesses, Section 204 of FSMA mandates FDA to complete sev-eral actions, the lawsuit explained. First, Congress required FDA to conduct pilot projects on potential food-tracing systems, and report the findings from these projects to

Congress, which had a deadline of October 1, 2011.

Second, the lawsuit said, no later than January 4, 2012, Con-gress required FDA to designate a classification of “high-risk” foods — meaning foods that were at the highest risk of being carriers of foodborne illness — for which additional recordkeeping require-ments were therefore “appropri-ate and necessary to protect the public health.” This mandate con-tained criterion on which to base a high-risk designation, including the history and severity of food-borne illness, outbreaks attributed to such foods, and the steps taken during the manufacturing process to reduce the possibility of con-

tamination.Third, according to the lawsuit,

Congress required that FDA pro-mulgate a proposed rulemaking, no later than Jan. 4, 20134, to estab-lish these additional “high-risk” food recordkeeping requirements for “facilities that manufacture, proces, pack, or hold foods that are designated high-risk foods.” The Food Safety Modernization Act specifies what can be included in the recordkeeping requirements, as well as limitations on when and to which facilities the requirements will apply.

Finally, Congress required that FDA publish the list of the FDA-designed “high-risk” foods on its website at the same time the agency promulgated the final rule for additional recordkeeping requirements, the lawsuit stated.

“FDA has failed to meet any of these deadlines and/or take most of the Congressionally-required actions,” the lawsuit said. The agency did conduct the pilot pro-grams and submit its report to Congress, but it did not do so until November 2016, five years after the statutory deadline.

Despite belatedly conducting the pilot program and report, FDA has yet to undertake any of the remaining FSMA high-risk food requirements, the lawsuit said. In February 2014, two years after the statutory deadline for the des-ignation of high-risk foods, FDA announced that it was taking the first “tentative” step in complying with the statute, and invited com-ments on its “draft approach for the review and evaluation of data to designate high-risk foods.”

CHEESE REPORTERPage 12 October 19, 2018

www.cheesereporter.com/events.htmSUPPLIER NEWS

COMPANY NEWS

PEOPLE

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Oct. 29-31: NMPF, UDIA, NDB Joint Annual Meeting, JW Mar-riott Desert Ridge, Phoenix, AZ. Visit www.nmpf.org for more information.

•Nov. 12-13: PLMA Private Label Trade Show, Rosemont Convention Center, Rosemont, IL. For full details, visit www.plma.com.

•Jan. 13-15, 2019: Winter Fancy Food Show, Moscone Center, San Francisco, CA. Visit www.specialtyfood.com.

•Jan. 20-23, 2019: Dairy Forum 2019, Ritz-Carlton Grande Lakes, Orlando, FL. For more information, visit www.idfa.org.

•March 5-7: US Championship Cheese Contest, Lambeau Field, Green Bay, WI. Visit www.uschampioncheese.org.

•March 26-28: ProFood Tech, McCormick Place, Chicago, IL. For more information, visit www.profoodtech.com.

•April 17-18: Wisconsin Cheese Industry Conference, Alliant Energy Center, Madison, WI. More details available online at www.cheeseconference.org.

•April 26-May 1: NCIMS Confer-ence, Hyatt Regency St. Louis at the Arch, St. Louis, MO. Visit www.ncims.org.

•May 5-7: ADPI/ABI Joint Annual Meeting, Chicago Marriott Downtown, Chicago, IL. For details, visit www.adpi.org.

•June 2-4: IDDBA Conference & Expo, Orange County Conven-tion Center, Orlando, FL. Visit www.iddba.org for details.

•June 2-5: IFT Annual Meeting & Expo, Ernest N. Morial Conven-tion Center, New Orleans, LA. For more details, visit www.ift.org.

•July 31-Aug. 3: American Cheese Society Annual Confer-ence, Richmond, VA. For more information, visit www.chees-esociety.org.

PLANNING GUIDE

University Of Idaho Food Safety, HACCP Workshops Planned For November 7 & 8Idaho Falls and Twin Falls, ID—The University of Idaho and Food Safety Northwest will host two introductory workshops next month on food safety, HACCP and preventatives controls.

The specially subsidized, low-cost course is intended for food entrepreneurs, those new to the food and dairy industry, and factory personnel. It will be held Wednes-day, Nov. 7 at the Hilton Garden Inn in Idaho Falls, and Thursday, Nov. 8 at the Twin Falls’ Hilton Garden Inn.

Participants will spend the first part of the day learning about food safety prerequisite programs, which are used to ensure food products are free from non-life threatening objectionable contaminants. This includes the recently updated good manufacturing practices.

Another part of the workshop will focus on HACCP, where stu-dents will learn about preliminary tasks, key principles, and imple-menting a HACCP/food safety plan.

The final part of course will be devoted to introducing participants to the new Food Safety Moderniza-tion Act (FSMA) regulation, Pre-

ventive Controls for Human Food. During the workshop, interactive team exercises and electronic par-ticipant response technology will be used to enhance the learning experience.

Each course runs 8 a.m. to 5 p.m. and will be led by Jeff Kro-nenberg, University of Idaho assis-tant professor; Josh Bevan, director of UI’s Food Technology Center; and Nancy Grabarczyk, food safety practitioner with Grabarczyk Con-sulting.

Specific topics of discussion include the science of food safety, including biological, chemical and physical hazards; food safety prerequisites like GMPs, pest and chemical control; cleaning and sanitation; and self-inspection and auditing.

Instructors will also cover FSMA regulations, food safety plans, pre-ventative control basics and how to manage preventative controls.

A registration fee of $150 per person includes workshop materi-als, certificate of completion and continental breakfast, lunch and refreshment breaks.

For more information or to reg-ister online, visit www.fsnwllc.com.

Ice Cream Retailing, Batch Freezer & Ice Cream Making Courses At UW-MadisonMadison—The University of Wis-consin-Madison is hosting three consecutive ice cream-related workshops here at Babcock Hall in the coming year.

The Successful Ice Cream Retailing Workshop is set for Jan. 14-15, and is designed for business owners and managers in the ice cream industry; industry suppliers and sales representatives; and any-one who manufactures ice cream with a batch freezer.

The course will cover being an entrepreuer, how to create a busi-ness plan, menu mix, marketing and promotional ideas, using social media and buying from wholesal-ers. Cost to attend is $500.

The Batch Freezer Workshop will be held Jan. 16-17, and is is designed to provide attendees with an in-depth exposure to the prac-tice of manufacturing frozen des-serts using batch freezers.

Lectures will cover concerns of quality evaluation, flavor selection, and processing procedures. Work-

ing in small groups under skilled supervision, the lab sessions will give participants hands-on experi-ence with freezer operation.

A fee of $1,100 includes cost of instructional materials and sup-plies, break and lunch, and regis-tration.

The third course – the Ice Cream Makers Workshop – will take place Feb. 13-15. It will high-light topics such as production trends; dairy and non-dairy mix ingredients; mix processing and freezing; cleaning and sanitizing; and ice cream inclusions.

Instructors will also talk about physical, chemical and microbial hazards; low fat, low carb, frozen yogurt, soft serve and custard; sher-bets and sorbet; sensory evaluation and mix standardization. The final day of the workshop will be spent in the lab, with manufacturing and product evaluation.

Cost to attend is $1,000 per stu-dent. For details on each course, visit www.dairyfoods.wisc.edu.

Food Labeling Seminar Will Cover GMO Claims, Nutrition Facts LabelNewark, NJ—A seminar here on US food labeling will address the new Nutrition Facts label require-ments, GMO claims and class action lawsuits.

Co-hosted by the Food Institute and OFW Law, the one-day semi-nar will take place here Wednes-day, Nov. 7 at the Newark Aiport Marriott.

Attendees will receive a deeper exploration into all aspects of food labeling. Speakers will cover the basics of food labeling, as well as country of origin labeling, manda-tory label information, authorized claims, menu labeling, enforce-ment by the US Food and Drug Administration (FDA) and other class action cases.

New topics for this year’s event include FDA’s new consumer education plans for the Nutrition Facts label and what it means for products; GE labeling and “Non-GMO” claims; new developments for ingredient labeling; debating “healthy” claims; and class action litigation trends 2018.

Also new this year, attendees will have the opportunity to par-ticipate in interactive labeling workshops where they will work through examples of different labeling problems and scenarios.

Also, attendees are invited to come prepared with their specific labeling questions. The registra-tion fee is $795 per person, and online registration is available.

For more details, visit www.food1.co/labeling2018.

IDFA’s 2019 Ice Cream Technology Conference Set For April 16-17 In FLSt. Petersburg, FL—The Inter-national Dairy Foods Association (IDFA) will hold its annual Ice Cream Technology Conference here April 16-17 at the Vicroy Renaissance.

The two-day event for ice cream and frozen dessert professionals focuses on innovations in frozen dessert research, technology and new market trends.

Registration and agenda will soon be available at www.idfa.org.

CHEESE REPORTEROctober 19, 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. Clas-sified ads charged $.75 per word. Classified ads payable in advance. Display Classifieds charged per column inch. For information, call 608-246-8430.

1. Equipment for Sale

WESTFALIA SEPARATORS: New arrivals! Great condition. Model num-bers 120, 130, 170 and 200. All water savers. Call GREAT LAKES SEPA-RATORS at (920) 863-3306 or e-mail drlambert@dialez.net.

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

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

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.

1. Equipment for Sale

ALFA-LAVAL SEPARATOR: Model MRPX 518 HGV hermetic separator. Can be set up for warm or cold. Call GREAT LAKES SEPARATORS at (920) 863-3306 or e-mail 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

Looking for hard to find products or ser-vices. Advertise here,

4. Walls & Ceiling

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 EPI Plastics at 888-818-0118 or www.epiplastics.com for more informa-tion.

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

5. Real Estate

DAIRY PLANTS FOR SALE: http://dairyassets.webs.com/acqui-sitions-mergers-other. Contact Jim at 608-835-7705; or by email at jim-cisler7@gmail.com

8. Promotion & Placement

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

10. Cheese & Dairy Products

General Machinery Corporation

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

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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

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3001EW TU-WAY Exact Weight Cheese Cutter

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

10. Cheese & Dairy Products

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

11. Warehousing

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

Packaging and Production ManagerShullsburg Creamery is currently seeking a motivated, highly organized, experienced Packaging and Production Manager to join our growing team of professionals. This position is responsible for the overall performance of the Production and Packaging Departments as it pertains to labor management, production scheduling and system flow, while focusing on safety, quality, cost and employee environment. This person must be assertive and strive to work directly with employees to constantly improve efficiencies. Experience with all aspects of food packaging, labeling laws and inventory control is a must. Duties include actively promoting and supporting food safety and product quality programs and initiatives working closely with plant management, operations and purchasing staff to ensure accurate, on time out flow.

Salary commensurates with experience and is negotiable. Please send cover letter, resume and references to:

Human ResourcesPO Box 398Shullsburg, WI 53586E-mail: hr@shullsburgcreamery.com

Gasket Materialfor the

Dairy Industry

TC Strainer Gasket

TC Strainer Gasket 440-953-8811gmiinc@msn.com

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A New Product thatis officially accepted*for use in Dairy Plants inspected by the USDAunder the Dairy Plant Survey Program.

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New, Refurbished, & Used Dairy Equipment Ullmer’s Engineers are on site designing

to your needs, including:

Holding/ Bulk Tanks Vats Cheese Presses/Molds Butter Churns

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We have our own laser and press brakeon site which helps reduce lead times!

Give us a call for a quote on your next project!

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COME TO THE EXPERTSWHEN YOU'RE TALKING SEPARATORS & CLARIFIERS

COME TO THE EXPERTSWHEN YOU'RE TALKING SEPARATORS & CLARIFIERS

80 Years of CombinedExperience and Honestyin the Sale of:• Separators, Clari�ers & Centrifuges• Surplus Westfalia & Alfa Laval Parts• Unbeatable Pricing• 24/7 Trouble Shooting

COME TO THE EXPERTSWHEN YOU'RE TALKING SEPARATORS & CLARIFIERS

COME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSCOME TO THE EXPERTSWHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING WHEN YOU'RE TALKING SEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERSSEPARATORS & CLARIFIERS

Call Dave Lambert at (920) 863-3306 or Dick Lambert at (920) 825-7468

GREAT LAKES SEPARATORS, INC.GREAT LAKES SEPARATORS, INC.GREAT LAKES SEPARATORS, INC.GREAT LAKES SEPARATORS, INC.P: (920) 863-3306 • F: (920) 863-6485

E: drlambert@dialez.net

Call for Competititve PricingJamey Williams at 972-422-5667

jamey@wisconsinsfinest.com

Wisconsin's Finest Cheese

1 lb. Chunks8 oz. ChunksIWS Slices8 oz & 2 lb. ShredsAmerican Slices American LoavesBlocks, Prints

1 lb. Chunks8 oz. ChunksIWS Slices8 oz & 2 lb. ShredsAmerican Slices American LoavesBlocks, Prints

Red Wax WedgesCream CheeseSwissBaby SwissAsadaroMuenster

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CHEESE REPORTERPage 14 October 19, 2018

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

CHEESE REPORTER READER SERVICE CARD

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

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PLEASE SEND ME MORE INFORMATION ON:___Subscribing ___Material to advertise in Cheese Reporter ___Other_________________

DAIRY PRODUCT SALES

WEEK ENDINGStyle and Region Oct. 6 Sept. 29 Sept. 22 Sept. 15

40-Pound Block Cheddar Cheese Prices and Sales Weighted Price Dollars/PoundUS 1.6783 1.6656 1.6786 1.6901Sales Volume PoundsUS 11,259,896 11,305,105 11,715,525 12,339,142

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

Weighted Price Dollars/Pound US 1.5282 1.5407 1.6085 1.6781Adjusted to 38% Moisture US 1.4505 1.4604 1.5259 1.5948Sales Volume PoundsUS 13,240,632 12,585,016 13,054,759 12,954,966Weighted Moisture Content PercentUS 34.68 34.59 34.64 34.76

Butter

Weighted Price Dollars/PoundUS 2.2955 2.2760• 2.2874 2.2494Sales Volume PoundsUS 4,409,958 6,968,511• 3,015,054 3,758,453

Dry Whey Prices

Weighted Price Dollars/PoundsUS 0.4367 0.4391• 0.4089• 0.4081Sales Volume US 5,244,956 5,166,892• 7,837,522• 7,444,362

Nonfat Dry Milk

Average Price Dollars/PoundUS 0.8732 0.8687• 0.8711• 0.8592•Sales Volume PoundsUS 11,370,690 13,644,233• 21,261,945• 16,983,990•

Oct. 17, 2018—AMS’ National Dairy Products Sales Report. Prices included are provided each week by manufacturers. Prices collected are for the (wholesale) point of sale for natu-ral, unaged Cheddar; boxes of butter meeting USDA standards; Extra Grade edible dry whey; and Extra Grade and USPH Grade A nonforti-fied NFDM. •Revised

Federal Order* Class 1 Minimum Prices & Other Advanced Prices - November 2018

Class I Base Price (3.5%) . . . . . . . . . . . . . . . . . . . . . . . . $15.52 (cwt)

Base Skim Milk Price for Class I . . . . . . . . . . . . . . . . . . . $6.81(cwt)

Advanced Class III Skim Milk Pricing Factor . . . . . . . . . $6.81(cwt)

Advanced Class IV Skim Milk Pricing Factor . . . . . . . . . $6.26 (cwt)

Advanced Butterfat Pricing Factor . . . . . . . . . . . . . . . . . $2.5578 (lb.)

Class II Skim Milk Price . . . . . . . . . . . . . . . . . . . . . . . . . $6.96 (cwt)

Class II Nonfat Solids Price . . . . . . . . . . . . . . . . . . . . . . $0.7733 (lb.)

Two-week Product Price Averages: Butter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2.2836 lb. Nonfat Dry Milk . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.8707 lb. Cheese . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1.5723 lb. Dry Whey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.4379 lb.

Base Class I Price was $15.52 per hundredweight for the month of November 2018. The price per hundredweight decreased $0.81 from the previous month.Base Skim Milk Price for Class I was $6.81 per hundredweight for the month of November 2018. The price per hundredweight decreased $0.90 from the previous month.

*Which now includes the California Federal Order

$1.40

$1.50

$1.60

$1.70

$1.80

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

40-Pound Block Avg

CME vs AMS

$12.00

$14.00

$16.00

$18.00

$20.00

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

Class I Milk Prices: Federal Order Minimum vs. California Minimum Milk Prices2018 vs. 2017

2017

2018

2017 – Current WPC Prices Since 2012High/Low Range (Edible 34% Central and West)High/Low Range (Edible 34% Central and West)

$0.55

$0.65

$0.75

$0.85

$0.95

$1.05

$1.15

$1.25

$1.35

DAIRY FUTURES PRICESSETTLING PRICE *Cash SettledDate Month Class III* Class IV* Dry Whey* NDM* Butter* Cheese*10-12 October 18 15.61 15.00 44.025 87.800 227.200 1.580010-15 October 18 15.60 15.03 44.325 88.000 228.050 1.579010-16 October 18 15.62 15.03 44.300 88.000 227.300 1.579010-17 October 18 15.60 15.03 44.500 88.000 227.025 1.577010-18 October 18 15.55 15.03 44.000 87.950 227.500 1.573010-12 November 18 15.76 15.02 45.650 87.500 228.750 1.582010-15 November 18 15.72 15.05 46.150 87.700 230.750 1.578010-16 November 18 15.75 15.05 47.000 87.750 230.000 1.577010-17 November 18 15.64 15.05 47.250 87.725 229.500 1.560010-18 November 18 15.53 15.05 47.250 87.750 229.000 1.547010-12 December 18 15.80 14.97 46.150 88.500 225.275 1.585010-15 December 18 15.73 15.00 46.850 88.700 226.100 1.579010-16 December 18 15.73 15.00 47.500 88.750 226.250 1.570010-17 December 18 15.62 15.00 47.525 88.525 225.750 1.562010-18 December 18 15.52 15.00 48.500 88.950 225.000 1.545010-12 January 19 15.76 14.89 44.800 89.025 220.700 1.595010-15 January 19 15.72 14.92 45.000 89.500 221.025 1.590010-15 January 19 15.69 14.92 45.700 89.250 221.175 1.580010-16 January 19 15.58 14.88 45.650 88.900 221.175 1.571010-18 January 19 15.43 14.88 46.475 89.950 220.950 1.550010-12 February 19 15.75 15.00 42.550 90.250 221.775 1.610010-15 February 19 15.75 15.03 43.000 90.675 222.100 1.603010-16 February 19 15.73 15.03 43.500 90.525 222.250 1.599010-17 February 19 15.63 14.99 44.050 90.000 222.250 1.582010-18 February 19 15.48 14.99 44.250 90.625 222.100 1.570010-12 March 19 15.84 15.14 40.200 91.500 223.525 1.629010-15 March 19 15.85 15.19 41.000 92.000 224.750 1.625010-16 March 19 15.86 15.21 41.750 91.850 225.025 1.622010-17 March 19 15.74 15.25 42.100 91.325 222.025 1.610010-18 March 19 15.65 15.22 42.300 91.975 225.000 1.596010-12 April 19 16.00 15.41 38.850 93.000 225.525 1.650010-15 April 19 16.03 15.46 40.500 93.000 227.000 1.649010-16 April 19 16.03 15.48 40.100 93.175 227.000 1.646010-17 April 19 15.96 15.52 40.700 92.000 227.000 1.635010-18 April 19 15.85 15.49 40.500 92.500 226.975 1.625010-12 May 19 16.00 15.59 37.675 94.000 227.525 1.660010-15 May 19 16.01 15.64 39.125 94.000 229.000 1.659010-16 May 19 16.02 15.66 38.700 93.850 229.000 1.658010-17 May 19 15.99 15.70 39.300 93.025 229.000 1.650010-18 May 19 15.92 15.67 38.925 94.000 228.975 1.645010-12 June 19 16.05 15.72 37.300 94.425 228.775 1.670010-15 June 19 16.08 15.66 37.750 95.000 230.475 1.670010-16 June 19 16.10 15.69 37.325 94.500 230.475 1.671010-17 June 19 16.06 15.70 38.150 94.000 230.475 1.662010-18 June 19 16.03 15.67 37.750 94.425 230.475 1.660010-12 July 19 16.21 15.77 36.975 96.650 231.000 1.690010-15 July 19 16.26 15.79 37.100 96.225 232.700 1.692010-16 July 19 16.27 15.82 36.675 95.725 232.700 1.690010-17 July 19 16.26 15.83 37.500 96.225 232.700 1.685010-18 July 19 16.20 15.80 37.000 95.275 232.700 1.683010-12 August 19 16.40 15.95 37.250 98.525 232.025 1.705010-15 August 19 16.40 15.97 37.375 98.100 234.000 1.707010-16 August 19 16.45 16.00 36.950 97.600 234.000 1.710010-17 August 19 16.45 16.01 37.050 98.150 234.000 1.705010-18 August 19 16.41 15.98 37.000 97.150 234.000 1.7070Interest - Oct. 18 26,078 1,749 4,268 6,713 6,426 24,321

CHEESE REPORTEROctober 19, 2018 Page 15

DAIRY PRODUCT MARKETSAS REPORTED BY THE US DEPARTMENT OF AGRICULTURE

WHOLESALE CHEESE MARKETS

WHOLESALE BUTTER MARKETS - OCTOBER 17CENTRAL: Cream remains tight for but-ter churning in the Central region. Churning activity varies by plant. In plants where man-agers are able to locate financially feasible cream, churns are running actively. Others are buying increasing amounts of bulk but-ter. As milkfat has become less available recently, butter interest has strengthened. Some contacts have relayed finding west-ern loads at more favorable prices than they can within the region. This is the first week of the kosher requirement on the CME. Con-tacts suggest with the added clarification, upward price movements could transpire.

NORTHEAST: Production is at sea-sonal levels as some processors seek extra cream loads, while others rework bulk butter to finalize contracted Thanksgiving orders. Expect more butter to be made available in the region with churns at a major proces-

sor resuming production. Worth noting is the existing market undertone transmits a tad of price uncertainty as indicators of near-term price stability prompt a few buyers’ willing-ness to wait on holiday purchases, in hopes of softer prices. And by all accounts, but-ter makers are making strategic attempts to match production levels with orders to con-trol inventories ahead of anticipated Decem-ber price declines.

WEST: Cream stocks are generally plen-tiful. However, production of heavy fat, holiday consumer products is increasing and processors expect tighter supplies of cream soon. Manufacturers report steady foodservice and bulk butter demand. Some eastern buyers are making but-ter purchases in the West to meet their needs, but trucks and truckers are costly and in tight supply.

NATIONAL - OCT. 12: Although current demand reports are steady to positive nation-wide, cheese makers expect purchaser reluctance to trend up, as buyers await potential price nadirs. Western cheese makers are reporting longer cheese stores but hope holiday sales will cut into the supplies. Northeastern inventories are mixed, as Mozzarella and Cheddar orders are steady to strong. Barrel inventories remain long in the Midwest, but not overly burdensome. Milk is still regionally variant, but mostly tight. Midwest spot milk prices ranged from Class III to $2 over. A number of cheesemakers are bypassing the spot milk market if possible because a majority of the few offers still available are at a premium.

NORTHEAST- OCT. 17: Cheese production is steady to a bit higher. Class I demand is stable, however there are some reports of an uptick in milk availability for Class III. Overall, milk clearing into Class I has been fairly heavy, as Northeast cheese makers report milk availability has been tighter this past month. Cheese inventories are steady to lower at this time, and some market participants would like to build up supplies. Mozzarella and provolone cheese domestic demand is stable and cheddar cheese domestic interest is fair. There are some reports of buy-ers’ demands being mixed on the spot market. Some are willing to purchase at current prices, and others are waiting to see where the prices move. Spot market activity is steady to lower, and Cheddar prices have declined on some indices. Also, in some international markets, Cheddar prices have decreased.

Wholesale prices, delivered, dollars per/lb:Cheddar 40-lb blocks: $2.1050 - $2.3900 Process 5-lb sliced: $1.5025 - $1.9825Muenster: $2.0900 - $2.4400 Swiss Cuts 10-14 lbs: $3.0150 - $3.3375

MIDWEST AREA - OCT. 17: Cheese production is active. Italian and American style cheese producers are facing demand upticks at a time when spot milk prices are solely at a premium. Reported spot milk prices ranged from $.50 to $2.00 over Class III. Thus, cheese producers have relayed nonfat fortifying is at its peak. Some midwestern cheese makers report their nonfat stocks are down to a bare minimum. Barrel producers, particularly those in isolated areas, who are in search of spot milk are unable to take on loads at the premiums offered. Production in some plants has shifted away from barrels. Cheese market tones are bearish. There were some expectations of an amalgamation of barrel and block prices after last week’s record-breaking price gap. However, that has not been the case, and the split remains.Some cheese contacts foresee an uptick in barrel market prices this fall.

Wholesale prices delivered, dollars per/lb: Brick 5# Loaf: $2.0125 - $2.4375 Cheddar 40# Block: $1.7400 - $2.1350Monterey Jack 10#: $1.9875 - $2.1925 Mozzarella 5-6#: $1.8125 - $2.7525 Muenster 5# $2.0125 - $2.4375 Process 5# Loaf: $1.4575 - $1.8175Grade A Swiss 6-9#: $2.5300 - $2.6475 Blue 5# Loaf: $2.2800 - $3.2675 WEST - OCT. 17: Western cheese manufacturing schedules are active because of higher milk availability. Class III processing plants are running at or close to full capacities despite solid milk intakes from other Classes of milk. Retail and foodservice sales of cheese have declined slightly, but are still at a good level. The supplies of cheese vary depending on the types of cheese. Currently, barrel inventories are higher than block inventories. According to a few industry contacts, this is so because some processors are producing more domestic barrel cheese to compensate for weaker export sales. However, some other processors say that they are still seeing Cheddar interest in the export market. The present large spread between block and barrel cheese prices is reflecting the uncertainty of the cheese market. Wholesale prices delivered, dollars per/lb: Cheddar 10# Cuts: $1.9525 - $2.1725Cheddar 40# Block: $1.7725 - $2.2150 Monterey Jack 10#: $1.9625 - $2.1225Process 5# Loaf: $1.4450 - $1.7025 Swiss 6-9# Cuts: $2.6125 - $3.0425 FOREIGN -TYPE CHEESE - OCT. 17: here are some concerns that cheese provi-sions might not be enough in the coming weeks as cheese demand is expected to increase during the fall festivities while the future growth of cheese production is unpredictable. On one hand, the discussions for contractual cheese prices are strengthening. However, on the other hand, prices for block cheese are a bit mixed as current offers are made at lower prices.

Selling prices, delivered, dollars per/lb: Imported DomesticBlue: $2.6400 - 5.2300 $2.1575 - 3.6450Gorgonzola: $3.6900 - 5.7400 $2.6650 - 3.3825Parmesan (Italy): 0 $3.5475 - 5.6375Romano (Cows Milk): 0 $3.3475 - 5.4975Sardo Romano (Argentine): $2.8500 - 4.7800 0Reggianito (Argentine): $3.2900 - 4.7800 0Jarlsberg (Brand): $2.9500 - 6.4500 0Swiss Cuts Switzerland: 0 $3.0525 - 3.3750Swiss Cuts Finnish: $2.6700- 2.9300 0

DRY DAIRY PRODUCTS - OCTOBER 18NDM - CENTRAL: Low/medium heat NDM prices remained steady during one of the slower spot trading weeks of this entire year. Market prices have settled a bit, and some contacts have suggested the market is sideways. That said, as more milk heads to bottling and/or out of the region and dryers take on more buttermilk, there is a chance for some near-term scantiness regarding low/medium heat NDM supplies.

NDM - WEST: With a supply in line with its demand, several contacts believe that the NDM cash market is balanced. Mean-while, in the political environment, new trade agreements are being made between the US, Mexico and Canada, which in turn are mitigating the uncertainty of several par-ticipants in the domestic/international NDM market. Consequently, NDM/SMP exports to Mexico are inching up and are expected to continue growing for the rest of Q4. Back to western US, some NDM customers want to settle Q1 2019 contracts as soon as possible in anticipation of prices going higher during the first quarter of 2019. Low/medium heat NDM production is active in most processing plants as heavy condensed skim volumes continue clearing into dryers.

NDM - EAST: Production schedules are steady to lower at this time, as balancing operations’ milk supplies are lower. Low/medium heat NDM inventories are stable to decreased as customers are working through contracted orders. Some manufac-turers do not have available loads to offer on the spot market. However, spot demand is steady to somewhat quiet. Some traders reported fewer spot trades this week com-pared to recent weeks. High heat prices are steady to inched up on the top of the price range. A couple manufacturers have sched-uled drying time and have some available loads for the spot market.

LACTOSE - CENTRAL & WEST: The industry view of demand is somewhat mixed. Some manufacturers suggest domestic and international demands are strong. Lactose is moving well through contracts, and proces-sors are receiving regular inquiries from buy-ers. In some cases, end users are looking to secure early 2019 needs now. Inventories remain tight, and many lactose producers do not expect that to change much through the end of the year. However, other industry contacts suggest another picture. They feel demand is not as robust as it had been.

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

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

10/15/18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,899 81,94610/01/18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,492 83,552Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,407 -1,606Percent Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 -2

ORGANIC DAIRY - RETAIL OVERVIEW

The total number of conventional dairy ads increased 11 percent from last week, but organic dairy ads dropped by 29 percent. Ads for conventional 1-pound butter augmented 92 percent, while organic 1-pound butter ads dropped by 86 percent. Conventional cheese ad numbers increased 3 percent, and organic cheese ad numbers increased 70 percent. The average price for conventional 8-ounce shred cheese is $2.16. No ads were reported for organic 8-ounce shred cheese. The average price for conventional 8-ounce block cheese is $2.25, compared to $3.79 for organic. Ad numbers for conventional 1-pound packages of shred cheese increased 176 percent, the largest percentage ad increase for any dairy item this week. Total conventional yogurt ads increased by 16 percent, but organic yogurt ads declined by 42 percent. The waverage advertised price for organic plain yogurt in 4-to 6-ounce containers is $1.49, while conventional plain yogurt in 4- to 6-ounce containers averaged $0.52, represent-ing an organic premium of 97 cents. The average price for conventional Greek yogurt in 4- to 6-ounce containers decreased 3 cents from last week price, and is at $0.92. Conventional 4-to 6-ounce Greek yogurt is currently the most advertised dairy product. The national average advertised price for conventional milk half-gallons is $2.37, compared to $4.11 for organic milk half gallons, an organic price premium of $1.74.

National Weighted Retail Avg Price: Butter 1 lb: $4.99Cheese 8 oz block: $3.79Cottage Cheese 16 oz: NACream Cheese 8 oz: NAYogurt 4-6 oz: $1.49

Yogurt 32 oz: $3.99Greek Yogurt 4-6 oz: NAMilk ½ gallon: $4.11Milk gallon: $5.39Milk UHT 8 oz: NASour Cream 16 oz: NA

RETAIL PRICES - CONVENTIONAL DAIRY - OCTOBER 19Commodity

Butter 1#

Cheese 8 oz block

Cheese 1# block

Cheese 2# block

Cheese 8 oz shred

Cheese 1# shred

Cottage Cheese

Cream Cheese

Flavored Milk ½ gallon

Flavored Milk gallon

Ice Cream 48-64 oz

Milk ½ gallon

Milk gallon

Sour Cream 16 oz

Yogurt (Greek) 4-6 oz

Yogurt (Greek) 32 oz

Yogurt 4-6 oz

Yogurt 32 oz

US NE SE MID SC SW NW

3.78 3.61 3.93 3.70 2.99 3.42 3.00

2.25 2.34 2.28 2.16 2.32 2.04 1.96

5.09 5.75 5.22 3.99 4.56 5.49 NA

6.40 NA 5.99 NA NA NA NA

2.16 2.14 2.18 2.07 2.24 2.18 1.93

4.57 3.99 4.70 3.99 3.99 NA NA

2.06 2.05 2.50 1.25 NA 1.79 NA

2.04 2.06 2.18 1.81 1.92 1.67 1.85

2.17 2.00 NA 2.00 NA NA 2.50

3.33 NA 3.99 NA NA NA 1.99

3.08 2.49 3.46 3.13 3.49 3.18 2.64

2.37 2.29 2.65 NA 2.69 1.69 NA

2.49 NA NA 2.45 2.51 2.77 1.99

1.75 1.81 1.75 1.10 1.59 1.99 1.47

.92 .89 .98 .99 .90 .95 .77

4.32 3.83 5.00 4.36 4.33 4.99 NA

.52 .49 .50 .63 .56 .50 .50

2.77 2.97 2.99 2.36 NA NA 2.00

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

CHEESE REPORTERPage 16 October 19, 2018

CME CASH PRICES - OCTOBER 15 - 19, 2018Visit www.cheesereporter.com for daily prices

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

MONDAY $1.3375 $1.6100 $2.2900 $0.8725 $0.5625October 15 (-2¼) (NC) (+4) (+½) (NC)

TUESDAY $1.3325 $1.6200 $2.2700 $0.8725 $0.5700October 16 (-½) (+1) (-2) (NC) (+¾)

WEDNESDAY $1.2925 $1.5900 $2.2850 $0.8675 $0.5750October 17 (-4) (-3) (+1½) (-½) (+½)

THURSDAY $1.2650 $1.5200 $2.2500 $0.8675 $0.5750October 18 (-2¾) (-7) (-3½) (NC) (NC)

FRIDAY $1.2675 $1.4975 $2.2600 $0.8725 $0.5750October 19 (+¼) (-2¼) (+1) (+½) (NC)

Week’s AVG $1.2990 $1.5675 $2.2710 $0.8705 $0.5715Change (-0.0670) (-0.0835) (+0.0200) (+0.0080) (+0.0110)

Last Week’s $1.3660 $1.6510 $2.2510 $0.8625 $0.5605AVG

2017 AVG $1.6670 $1.7090 $2.3750 $0.7540 NASame Week

MARKET OPINION - CHEESE REPORTER

WHEY MARKETS - OCTOBER 15 - 19, 2018

Cheese Comment: On Monday, 1 car of blocks was sold on an offer at $1.5800; an unfilled bid for 1 car at $1.6100 then left the price unchanged. One car of blocks was sold Tuesday on a bid at $1.6200, which raised the price. Three cars of blocks were sold Wednesday, all on offers, the last at $1.5900, which set the price. Four cars of blocks were sold Thursday, all on bids, the last at $1.5200, which set the price. Eight cars of blocks were sold Friday, the last on a bid at $1.4975, which set the price. The barrel price dropped Monday on offer-based sales of 5 cars at $1.3375, fell Tuesday on a bid-based sale of 1 car at $1.3325, declined Wednesday on an offer-based sale of 1 car at $1.2925, dropped Thursday on sales of 2 cars at $1.2650, then rose Friday on a bid-based sale of 1 car at $1.2675.

Butter Comment: The price increased Monday on offer-based sales of 2 cars at $2.2900, declined Tuesday on an offer-based sale of 1 car at $2.2700, rose Wednes-day on sales of 2 cars at $2.2850, fell Thursday on a bid-based sale of 1 car at $2.2500, then rose Friday on a bid-based sale of 1 car at $2.2600.

NDM Comment: The price rose Monday on an unfilled bid for 1 car at 87.25 cents, fell Wednesday on an uncovered offer of 1 car at 86.75 cents, then increased Friday on an offer-based sale of 1 car at 87.25 cents.

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

‘10 14.50 14.28 12.78 12.92 13.38 13.62 13.74 15.18 16.26 16.94 15.44 13.83‘11 13.48 17.00 19.40 16.87 16.52 19.11 21.39 21.67 19.07 18.03 19.07 18.77‘12 17.05 16.06 15.72 15.72 15.23 15.63 16.68 17.73 19.00 21.02 20.83 18.66‘13 18.14 17.25 16.93 17.59 18.52 18.02 17.38 17.91 18.14 18.22 18.83 18.95‘14 21.15 23.35 23.33 24.31 22.57 21.36 21.60 22.25 24.60 23.82 21.94 17.82‘15 16.18 15.46 15.56 15.81 16.19 16.72 16.33 16.27 15.82 15.46 15.30 14.44 ‘16 13.72 13.80 13.74 13.63 12.76 13.22 15.24 16.91 16.39 14.82 16.76 17.40‘17 16.77 16.88 15.81 15.22 15.57 16.44 15.45 16.57 16.36 16.69 16.88 15.44‘18 14.00 13.40 14.22 14.47 15.18 15.21 14.10 14.95 16.09

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RELEASE DATE - OCTOBER 18, 2018

Animal Feed Whey—Central: Milk Replacer: .2650 (NC) – .4100 (NC)

Buttermilk Powder: Central & East: .8800 (NC) – .9200 (NC) West: .8200 (+2) – .9500 (+6½) Mostly: .8500 (+3) – .8900 (+4)

Casein: Rennet: 2.4200 (-3) – 2.5600 (NC) Acid: $3.0900 (-1) - $3.2000 (NC)

Dry Whey—Central (Edible): Nonhygroscopic: .3600 (NC) – .5600 (NC) Mostly: .4400 (+1½) – .4700 (+2)

Dry Whey–West (Edible): Nonhygroscopic: .4350 (+3½) – .5500 (NC) Mostly: .4500 (+3½) – .5000 (NC)

Dry Whey—NE: .4375 (+2) – .5500 (NC)

Lactose—Central and West: Edible: .2900 (-1) – .4500 (NC) Mostly: .3100 (NC) – .3850 (NC)

Nonfat Dry Milk —Central & East: Low/Medium Heat: .8350 (NC) – .9300 (NC) Mostly: .8800 (NC) – .9200 (NC) High Heat: 1.0000 (NC) – 1.0600 (+1)

Nonfat Dry Milk —Western: Low/Medium Heat: .8200 (+¼) – .9500 (+½) Mostly: .8500 (NC) – .9000 (NC) High Heat: 1.0000 (NC) – 1.0800 (NC)

California Weighted Average NFDM: Price Total Sales October 12 $0.8554 6,776,561 October 5 $0.8492 9,154,239 Whey Protein Concentrate—Central and West: Edible 34% Protein: .7700 (NC) – 1.0375 (+1¼) Mostly: .8000 (NC) – .9350 (NC)

Whole Milk—National: 1.4500 (NC) – 1.6000 (NC)

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

EU Reaches Trade Agreement With Vietnam; Will Reduce Dairy Tariffs, Protect Some GIsBrussels, Belgium—The Euro-pean Commission on Wednesday adopted the EU-Vietnam trade and investment agreements, pav-ing the way for their signature and conclusion.

The agreement will eliminate virtually all tariffs on goods traded between the two sides. For exam-ple, EU dairy products will be duty free after a maximum of five years.

Also, the trade agreement will provide protection for 169 tradi-tional EU food and drink products in Vietnam, the so-called geo-graphical indications, such as for Roquefort and Queso Manchego cheese.

Under the agreement, specific solutions were agreed for five EU GIs, including Asiago, Feta, Fon-tina and Gorgonzola, addressing possible co-existence with prior registered trade marks or uses in Vietnam.

Thus, the agreement’s protec-tion of the GIs Asiago, Fontina and Gorgonzola will not prevent the use of these GIs in Vietnam by any persons who made actual com-mercial use in good faith of those GIs with regard to products in the

class of “cheeses” prior to Jan. 1, 2017.

And the agreement’s protection of the GI Feta will not prevent the use of this GI in Vietnam by any persons who made actual commer-cial use in good faith of this GI with regard to products in the class of “cheeses” made from sheep’s milk ormade from sheep and goat’s milk, prior to Jan. 1, 2017.

“Vietnam has massive potential for EU exporters and investors to do business, both now and in the future,” said Cecilia Malmstrom, the EU’s trade commissioner. “It is one of the fastest-growing econ-omies in Southeast Asia, with a vibrant market of more than 95 million consumers, an emerging middle class and a young, dynamic workforce.”

Besides offering significant eco-nomic opportunities, the trade agreement also ensures that trade, investment and sustainable devel-opment go hand in hand, by set-ting the highest standards of labor, safety, environmental and con-sumer protection, ensuring that there is no “race to the bottom” to attract trade and investment, the European Commission said.

Also, the EU and Vietnam have agreed to go beyond the rules set out in the WTO Technical Bar-riers to trade Agreement. Viet-nam has committed to increasing the use of international standards when drafting its regulations.