16
USDA Seeks Stakeholder Input To Prepare Bioengineered Food Disclosure Rule Proposal Groups Want Authorities To Pursue All Avenues Available To Challenge Canada’s Price Policies S e r v i n g t h e W o r l d ' s D a i r y I n d u s t r y W e e k l y Since 1876 C HEESE REPORTER “In the absence of such efforts, Canada’s Class 7 policy will seri- ously further distort and disrupt international dairy trade,” the groups wrote. Under Canada’s supply man- agement system, Canadian milk production levels were maintained between 74.8 million hectoliters in 2000 and 76.7 million lecto- liters in 2010, “with no discern- ible trend line,” the groups noted. However, a “distinct upward trend line” has now emerged, with 4 per- cent growth per annum over the last two years, and 2016 produc- tion of 84.7 million hectoliters is the highest in history. “This might not be problematic if there was a market for this addi- tional milk in Canada, but that is not the case,” the groups stated. The upward trend in milk produc- tion is the result of production quotas being set on estimated but- ter consumption, “which has been growing rapidly.” However, the co-product of butter production, milk protein, has not seen a similar increase in demand, the groups explained. • See Canada’s Policies, p. 5 Dairy Groups Want Governments To Act On Canadian Dairy Policies Vol. 142, No. 2 • Friday, June 30, 2017 • Madison, Wisconsin -11000 -6000 -1000 4000 9000 14000 19000 24000 29000 34000 39000 44000 CA WI ID PA NM TX MI SD MN Column2 Change In Milk Cows May 2016 vs. May 2017 in 1000 head Washington—Ten dairy indus- try organizations from around the world this week asked their govern- ments’ trade ministers to “pursue all avenues available” to challenge Canada’s new special milk Class 7. Organizations signing the let- ter included the International Dairy Foods Association (IDFA), National Milk Producers Federa- tion (NMPF), US Dairy Export Council (USDEC), European Association of Dairy Trade (Euco- lait), European Dairy Association (EDA), European Whey Products Association (EWPA), Dairy Com- panies Association of New Zea- land (DCANZ), Australian Dairy Industry Council (ADIC), Mexi- co’s Camara Nactional De Indus- triales de la Leche (CANILEC), and Argentina’s Centro De La Industria Lechera. Last September, nine of these organizations (not including Argentina’s Centro De La Industria Lechera) had expressed concern over Canadia’ dairy policy devel- opments. Specifically, they were concerned that an “Agreement in Principle” that had recently been reached between Canada’s dairy producers and processors was designed to incentivize the substitution of Canadian domes- tic origin dairy ingredients for dairy ingredients “imported from our countries, and to position the export of Canadian dairy products to unfairly compete against our products in third country markets.” With Canada’s adoption of the new special milk Class 7, that agreement has become reality, and so too has “the substitution of Canadian ingredients for our imports and the undercutting by Canadian protein exports of our exports in third country markets.” The groups are now asking the authorities in the US, Australia, New Zealand, the European Union (EU), Mexico, and Argentina to pursue all avenues to challenge Canada’s measures, including WTO dispute settlement and bilateral trade agreement relation- ships. Valley Queen Cheese Factory Announces $50 Million Expansion Of Plant In Milbank, SD Milbank, SD—Citing increasing demand for its dairy products and a growing milk supply from the dair- ies located in the I-29 Corridor, the board of directors of Valley Queen Cheese Factory has approved a $50 million investment in its facility in Milbank, SD. This expansion project, dubbed “VQ Next,” will increase the com- pany’s processing capacity by 25 percent to over 5 million pounds of milk per day. All milk will be sup- plied from dairies located within a 100-mile radius of Valley Queen’s plant in eastern South Dakota. The expansion project will take place within Valley Queen’s exist- ing footprint at the Milbank facil- ity and will maximize the efficiency • See Valley Queen Grows, p. 7 Washington—USDA’s Agricul- tural Marketing Service (AMS) is asking for input from stake- holders that it will use in drafting a proposed bioengineered food disclosure rule. The National Bioengineered Food Disclosure Standard Law, which was enacted by Congress last summer, charges AMS with developing a national mandatory system for disclosing the pres- ence of bioengineered material. AMS has two years to establish the standard and the procedures necessary for implementation. The public will also have the opportunity to comment on any proposed rule during the rule- making process. The agency has listed 30 ques- tions for consideration by inter- ested stakeholders. Input related to the questions should be sent to [email protected] by July 17, 2017. Questions for which feedback is being sought include: —What terms should AMS consider interchangeable with “bioengineering”? AMS is con- sidering the use of other terms to provide for disclosure. —How should AMS craft lan- guage in the regulations acknowl- edging that animals consuming bioengineered feed are exempt from the disclosure requirements as bioengineered solely because they fed on bioengineered feed? AMS is considering regulatory language similar to the word- ing in the law and if the agency should provide clarity that food derived from any animal would not require disclosure as a bioen- • See Bioengineered Food, p. 9 Upstate Niagara To Acquire Kraft-Heinz Cheese Plant In Campbell, NY; Plant To Be Improved Campbell, NY—Upstate Niagara Cooperative and the Kraft Heinz Company today announced that they have signed an agreement under which Upstate Niagara will purchase the Kraft-Heinz cheese plant located in Campbell, NY. Closing of the deal is expected to be completed within the next 30 to 60 days. The Campbell plant produces Polly-O String and other Italian cheeses. “We’re thrilled to announce that Upstate Niagara Cooperative has agreed to purchase our Camp- bell dairy facility and has signed a long-term co-packing agreement with Kraft Heinz,” said Michael Mullen, SVP of corporate and gov- ernment affairs at the Kraft Heinz Company. “This deal guarantees that at least 125 jobs will remain in Campbell with anticipated growth to 150 within a year, during which our business customers will expe- rience zero disruption in the ser- vice of our dairy products,” Mullen added. “As part of our commitment to this transaction, Kraft Heinz has pledged an ongoing investment of $3 to $5 million to improve and maintain the Campbell facility.” “We look forward to adding the Campbell cheese facility to our organization in the coming weeks,” said Larry Webster, CEO of Upstate Niagara Cooperative, which is based in Buffalo, NY. “As a dairy cooperative owned by farm families throughout the region, • See Campbell Plant, p. 11

W o r l d ' s DairyI t h W S l y CHEESE REPORTER 30, 2017.pdf · Bioengineered Food Disclosure Rule Proposal Groups Want Authorities To Pursue All Avenues Available To Challenge Canada’s

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Page 1: W o r l d ' s DairyI t h W S l y CHEESE REPORTER 30, 2017.pdf · Bioengineered Food Disclosure Rule Proposal Groups Want Authorities To Pursue All Avenues Available To Challenge Canada’s

USDA Seeks Stakeholder Input To Prepare Bioengineered Food Disclosure Rule Proposal

Groups Want Authorities To Pursue All Avenues Available To Challenge Canada’s Price Policies

Serv

ing

theWorld's Dairy Industry W

eekly

Since 1876

CHEESE REPORTER

“In the absence of such efforts, Canada’s Class 7 policy will seri-ously further distort and disrupt international dairy trade,” the groups wrote.

Under Canada’s supply man-agement system, Canadian milk production levels were maintained between 74.8 million hectoliters in 2000 and 76.7 million lecto-liters in 2010, “with no discern-ible trend line,” the groups noted. However, a “distinct upward trend line” has now emerged, with 4 per-cent growth per annum over the last two years, and 2016 produc-tion of 84.7 million hectoliters is the highest in history.

“This might not be problematic if there was a market for this addi-tional milk in Canada, but that is not the case,” the groups stated. The upward trend in milk produc-tion is the result of production quotas being set on estimated but-ter consumption, “which has been growing rapidly.”

However, the co-product of butter production, milk protein, has not seen a similar increase in demand, the groups explained.

• See Canada’s Policies, p. 5

Dairy Groups Want Governments To Act On Canadian Dairy Policies

Vol. 142, No. 2 • Friday, June 30, 2017 • Madison, Wisconsin

-11000

-6000

-1000

4000

9000

14000

19000

24000

29000

34000

39000

44000

CA WI ID PA NM TX MI SD MN

Column2

Change In Milk CowsMay 2016 vs. May 2017in 1000 head

Washington—Ten dairy indus-try organizations from around the world this week asked their govern-ments’ trade ministers to “pursue all avenues available” to challenge Canada’s new special milk Class 7.

Organizations signing the let-ter included the International Dairy Foods Association (IDFA), National Milk Producers Federa-tion (NMPF), US Dairy Export Council (USDEC), European Association of Dairy Trade (Euco-lait), European Dairy Association (EDA), European Whey Products Association (EWPA), Dairy Com-panies Association of New Zea-land (DCANZ), Australian Dairy Industry Council (ADIC), Mexi-co’s Camara Nactional De Indus-triales de la Leche (CANILEC), and Argentina’s Centro De La Industria Lechera.

Last September, nine of these organizations (not including Argentina’s Centro De La Industria Lechera) had expressed concern over Canadia’ dairy policy devel-opments. Specifically, they were

concerned that an “Agreement in Principle” that had recently been reached between Canada’s dairy producers and processors was designed to incentivize the substitution of Canadian domes-tic origin dairy ingredients for dairy ingredients “imported from our countries, and to position the export of Canadian dairy products to unfairly compete against our products in third country markets.”

With Canada’s adoption of the new special milk Class 7, that agreement has become reality, and so too has “the substitution of Canadian ingredients for our imports and the undercutting by Canadian protein exports of our exports in third country markets.”

The groups are now asking the authorities in the US, Australia, New Zealand, the European Union (EU), Mexico, and Argentina to pursue all avenues to challenge Canada’s measures, including WTO dispute settlement and bilateral trade agreement relation-ships.

Valley Queen Cheese Factory Announces $50 Million Expansion Of Plant In Milbank, SDMilbank, SD—Citing increasing demand for its dairy products and a growing milk supply from the dair-ies located in the I-29 Corridor, the board of directors of Valley Queen Cheese Factory has approved a $50 million investment in its facility in Milbank, SD.

This expansion project, dubbed “VQ Next,” will increase the com-pany’s processing capacity by 25 percent to over 5 million pounds of milk per day. All milk will be sup-plied from dairies located within a 100-mile radius of Valley Queen’s plant in eastern South Dakota.

The expansion project will take place within Valley Queen’s exist-ing footprint at the Milbank facil-ity and will maximize the efficiency

• See Valley Queen Grows, p. 7

Washington—USDA’s Agricul-tural Marketing Service (AMS) is asking for input from stake-holders that it will use in drafting a proposed bioengineered food disclosure rule.

The National Bioengineered Food Disclosure Standard Law, which was enacted by Congress last summer, charges AMS with developing a national mandatory system for disclosing the pres-ence of bioengineered material. AMS has two years to establish the standard and the procedures necessary for implementation.

The public will also have the opportunity to comment on any proposed rule during the rule-making process.

The agency has listed 30 ques-tions for consideration by inter-ested stakeholders. Input related to the questions should be sent

to [email protected] by July 17, 2017.

Questions for which feedback is being sought include:

—What terms should AMS consider interchangeable with “bioengineering”? AMS is con-sidering the use of other terms to provide for disclosure.

—How should AMS craft lan-guage in the regulations acknowl-edging that animals consuming bioengineered feed are exempt from the disclosure requirements as bioengineered solely because they fed on bioengineered feed? AMS is considering regulatory language similar to the word-ing in the law and if the agency should provide clarity that food derived from any animal would not require disclosure as a bioen-

• See Bioengineered Food, p. 9

Upstate Niagara To Acquire Kraft-Heinz Cheese Plant In Campbell, NY; Plant To Be ImprovedCampbell, NY—Upstate Niagara Cooperative and the Kraft Heinz Company today announced that they have signed an agreement under which Upstate Niagara will purchase the Kraft-Heinz cheese plant located in Campbell, NY.

Closing of the deal is expected to be completed within the next 30 to 60 days. The Campbell plant produces Polly-O String and other Italian cheeses.

“We’re thrilled to announce that Upstate Niagara Cooperative has agreed to purchase our Camp-bell dairy facility and has signed a long-term co-packing agreement with Kraft Heinz,” said Michael Mullen, SVP of corporate and gov-ernment affairs at the Kraft Heinz Company.

“This deal guarantees that at least 125 jobs will remain in Campbell with anticipated growth to 150 within a year, during which our business customers will expe-rience zero disruption in the ser-vice of our dairy products,” Mullen added. “As part of our commitment to this transaction, Kraft Heinz has pledged an ongoing investment of $3 to $5 million to improve and maintain the Campbell facility.”

“We look forward to adding the Campbell cheese facility to our organization in the coming weeks,” said Larry Webster, CEO of Upstate Niagara Cooperative, which is based in Buffalo, NY. “As a dairy cooperative owned by farm families throughout the region,

• See Campbell Plant, p. 11

Page 2: W o r l d ' s DairyI t h W S l y CHEESE REPORTER 30, 2017.pdf · Bioengineered Food Disclosure Rule Proposal Groups Want Authorities To Pursue All Avenues Available To Challenge Canada’s

CHEESE REPORTERPage 2 June 30, 2017

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Apparently Congress in recent years has been too busy accomplish-ing very little to actually care about whether USDA is following the requirements of two of the laws it passed.

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

Where Are USDA’s Reports On Dairy Promotion Programs?

D I C K G R O V E S

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

EDITORIAL COMMENT

We’re now halfway through 2017, and this serves as a good reminder that the US Department of Agri-culture is a tad late in submitting its annual report to Congress on the dairy and fluid milk promo-tion programs. Several years late, in fact.

The Dairy Production Stabiliza-tion Act of 1983, which created the National Dairy Promotion and Research Program, requires USDA to submit an annual report to the House and Senate Agriculture Committees on the dairy promo-tion program. The enabling legis-lation for the Fluid Milk Processor Promotion Program, the Fluid Milk Promotion Act of 1990, also requires such a report.

But the most recent report posted on the website of USDA’s Agricultural Marketing Service (which has oversight responsibil-ity for both dairy promotion pro-grams as well as a number of other promotion and research programs covering everything from eggs and cotton to popcorn and soft-wood lumber) covers 2012 pro-gram activities. That’s practically ancient history.

This raises at least three ques-tions. First, where the heck are the more recent annual reports to Congress on the dairy and fluid milk promotion programs? Second, why should anyone care about these reports? And third, is there anybody in Congress trying to do something about these overdue reports?

Regarding that first question, well, there doesn’t appear to be an answer, just quite a bit of his-torical context. Back in the 1980s, for example, the annual report to Congress (which then covered just the farmer-funded National Dairy Promotion and Research Program) was supposed to be submitted to the House and Senate Agriculture Committees by July 1 of each year, and covered the National Dairy Board’s fiscal period beginning May 1 of the previous year and ending on April 30 of the current year.

So these early annual reports were pretty current; there was just a two-month lag between when the fiscal period ended and the date of the report. They were also pretty current because they would arrive in our mailbox in Madison shortly after July 1 every year.

Today? As noted earlier, the last annual report posted on the AMS website covers calendar year 2012. At a minimum, it would seem that USDA is at least three years behind on this report.

As far as the second question is concerned, there are several groups that should care about these reports. Primarily, dairy farmers and dairy importers pay an assess-ment to the National Dairy Pro-motion and Research Program, so they should certainly care about these reports, and fluid milk pro-cessors pay for that program.

And the reports include some pretty important information for those who pay for the programs, such as financial statements. They also include an annual indepen-dent analysis of the advertising and promotion programs that operate to increase sales of fluid milk and dairy products.

In the most recent report, cov-ering 2012 program activities, Texas A&M University research-ers found that the US dairy check-off programs “have effectively increased the supply, demand, prices, and exports of dairy prod-ucts. The gains in profit at the farm level were far larger than the costs of the checkoff programs.”

Interestingly, there was no real mention of the benefit to dairy importers of the dairy promotion program. The 2012 report was notable in that it covered the first full calendar year in which the dairy import assessment was in effect (importers started paying 7.5 cents per hundredweight of milk, or the equivalent thereof, on imported dairy products on August 1, 2011).

It would be interesting to see if reports covering 2013, 2014, 2015 and 2016 offered any insights into

whether importers were actually benefitting from paying into the dairy promotion program.

Related to that, and regarding the third question posed earlier, there are at least a couple of US senators trying to do something about the dairy and other promo-tion and research programs.

Congress does, after all, have something at stake in all of this. It passed the legislation that launched both the National Dairy Promo-tion and Research Program and the Fluid Milk Processor Promo-tion Program, and it also included in those laws the requirement that USDA submit an annual report to Congress on those two programs.

Apparently Congress in recent years has been too busy accom-plishing very little to actually care about whether USDA is following the requirements of two of the laws it passed.

But in a rare bit of bipartisan-ship, US Sens. Mike Lee, a Utah Republican, and Cory Booker, a New Jersey Democrat, recently introduced legislation that would: require transparency through publication of checkoff program budgets and expenditures, and means for audits of compliance; clarify and fortify the prohibition on checkoff programs from con-tracting with organizations that lobby on agricultural policy; and establish program standards and prohibit anticompetitive behavior and engaging in activities that may involve a conflict of interest.

Frankly, the legislation would probably be adequate from a dairy industry perspective if it simply required USDA to do what the laws tell it to do: submit an annual report to the House and Senate Agriculture Committees on the dairy promotion programs. For a number of years, USDA did just that.

But since the last report to Con-gress covers 2012, maybe Congress needs to pass a new law that will force USDA to obey a couple of old laws and again start publishing annual reports every year.

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CHEESE REPORTERJune 30, 2017 Page 3

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

Global Milk Production Continues To Recover Due To Higher Milk Prices, Better WeatherIndustry To Move Into A Phase Of Trade Expansion; Butterfat Demand Rise Presents ChallengesUtrecht, The Netherlands—Global milk production levels continue to recover following the sharp contraction in late 2016, according to the recently released “Rabobank Global Dairy Quarterly Q2 2017.”

Higher farmgate milk prices and more favorable weather conditions are providing much-needed relief for the world’s dairy farmers after a three-year decline in milk values. Farmgate prices in the US con-tinue to track well above the prices in Europe and Oceania, spurred on by local demand and, thanks to a slightly weaker US dollar, firmer export trade.

Rabobank expects, given con-tinuing good margins over feed, that US milk production will continue to grow and that, after a “slight stumble” in 2017’s first quarter, US cheese and butter consumption “will also continue to drive solid domestic demand growth,” said Kevin Bellamy, Rabobank global dairy head.

Average farmgate prices in Europe moved up at the end of 2016, but have remained at only mildly interesting levels, leading to varied production responses, Rabo-bank reported. Farmers in Ireland, Poland, and Italy have all contin-ued to expand production, with the UK also adding a late produc-tion spurt in 2017’s second quarter.

However, overall production in Europe has grown more slowly than many expected. Germany and France, the two largest pro-ducing countries in the EU, fell well behind last year’s production levels throughout the first half of 2017, Rabobank said.

With a cold and dry spring lim-iting production in March and April, and environmental con-straints hitting the Netherlands, Europe’s farmers struggled to return to growth, Rabobank noted.

“The weak production growth in the EU, at a time of year when butterfat levels are naturally depressed, and the strong demand growth in the US have contrib-uted to a global shortage of but-terfat, forcing prices of butter and cream to exceptional levels. In the short term, to alleviate the pres-sure, processors will certainly be tempted to move farmgate prices up to encourage more butterfat supply”, Bellamy commented.

By contrast, weaker milk sup-ply in Europe has led to less need for surplus protein to enter public stocks, with, so far, much lower levels of support buying.

Elsewhere, Rabobank noted that the surplus of proteins has

same period the previous year.Australia is also starting the sea-

son with more optimism than last year and will start to recover some, but not all, of the production lost, Rabobank said. Australia’s March output declined 5 percent com-pared to March 2016. Production for the 12 months to March was down 7 percent.

In China, farmgate prices have been weakening, restricting vol-ume growth from large corporate farms and forcing smaller farm-ers out of production, meaning that even mediocre consumption growth has managed to outstrip supply increases.

With stocks running low, Rabo-bank’s expectations are that import levels will need to grow dramati-cally faster in the second half of 2017 and that the full-year import

growth will near the forecast of 20 percent for the year, conveniently soaking up the extra supplies stem-ming from New Zealand. In addi-tion, the introduction of tighter infant formula regulations appears to be benefiting importers more than local players, with imports also significantly higher.

Overall, Rabobank’s outlook suggests that the global produc-tion recovery will continue, and the industry will move into a phase of trade expansion which will be needed to supply the steady, if modest, demand growth.

The structural increase in demand for butterfat will take lon-ger to resolve, with prices needing to adjust to reflect consumption patterns and long-term incentives needed to encourage the produc-tion of more fat, Rabobank said.

caused political tensions between the US and Canada.

Looking forward to the remain-der of 2017, New Zealand is “steaming up,” Rabobank said, with more optimism for the new season than has been seen for the last three years and opening prices at, or around, NZ$6.50 per kilo-gram of milk solids. Good weather leading into the season will stimu-late strong growth.

In its June “Global Dairy Update,” Fonterra reported that total New Zealand milk output in April was up 6 percent compared to April 2016. For the 12 months to April, milk production was down 1 percent compared to the

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CHEESE REPORTERPage 4 June 30, 2017

from our archives

50 YEARS AGOJune 30, 1967: Madison—Cheesemaking is slowly being mechanized after many years of hard and tedious labor, UW-Madison food scientist N.F. Olson reported this week. More equipment manufacturers are designing vats and other equip-ment so that physical labor is reduced during the make process.

Ithaca, NY—Vladimir Kru-kovsky, noted for research in milk chemistry, will retire this month and become professor emeritus after 33 years at Cor-nell University. On the faculty of Cornell’s food science depart-ment since 1933, Krukovsky has done research on the importance of milkfat globules and lipolytic activity in influencing the qual-ity and stability of milk.

25 YEARS AGOJune 26, 1992: Madison—The US Cheese Makers Association this week announced that Linda Leger has been named executive director of the organization, which has recently split from the Wisconsin Cheese Makers Association. Effective July 1, Leger will be leaving her post as WCMA director of member services.

Madison—Farmers Union Milk Marketing Cooperative this week welcomed USDA’s deter-mination that Switzerland has been dumping cheese on the US market and called for swift cor-rective action to halt further eco-nomic injury to American dairy farmers and cheese makers from the unfair imports.

10 YEARS AGOJune 29, 2007: Brussels, Bel-gium—Germany doesn’t have to prosecute cheese producers who market some hard cheeses as “Parmesan,” even if the cheese doesn’t originate from the countryside around Parma, Italy. However, court officials said that Germany had failed to prove that Parmesan is a generic term different from the already-protected “Parmigiano Reg-giano” nomenclature.

Brattleboro, VT—The Grafton Village Cheese Company held a ceremonial ground-breaking here this week at Retreat Farm – home of the company’s future cheese production plant. The new plant will increase production from 1.5 million to 3.0 million pounds of cheese annually.For more information, circle #2 on the Reader Response Card on p. 14

On the 11th 12th and 13th of June this year something remark-able happened. Some 30 small family cheese makers from Brazil hid cheese in their suitcases and traveled to France to enter them in the third Mondial du Fromage. Fully one-third of these producers walked away with medals, includ-ing the highest honor a cheese can win in the world, a super gold.

In itself, this would be remark-able but is even more so when you consider that every single one of them would be considered to be breaking the law had the govern-ment of Brazil discovered what they were doing. Rather than go into a long academic discussion about why this makes no sense, lis-ten to Marly Leite , the winner of the super gold tell it, in her own words:

“In the 1950s my grandparents moved to the region of Araxá from the Serra de Canastra to start their farm, Fazenda Caxambu. They brought with them a recipe for Artisanal Minas cheese handed down to them by their parents, an oral tradition that has lasted close to 300 years and is part of the cul-tural patrimony of Brazil. Because it was a different region, the cheese came out differently. Since Arti-

C h e e s e m a r k e t i n g P r a c t i c e

Brazilian Cheese Makers Break The Law, Win Awards

Dan StronginASQ CMQ/OEUncorporate Consultant

sanal Minas Cheese (QMA) is made from raw milk and natural whey starter, it directly reflects the terroir of the micro region in which it is made.

When I and my husband decided to try our hands at the selling of cheese, in 1992, when we got mar-ried, we had a few complications. Despite having inherited this won-derful tradition, we had no cows. So we sold the cheeses of other producers in the region. We were the dreaded middlemen. We would collect these cheeses and take them to other cities.

Until recently the sale of cheeses made with raw milk from small producers was illegal in Bra-zil. Yet, ironically, tons of cheese made from raw milk was and is sold clandestinely. Since the product we sold was a clandestine product we transported it very late in the night, just before sunrise, to avoid being caught. But after five years, the authorities got us, taking all our cheese away from us and destroy-ing it, a total loss. We were desper-ate, because like so many others, because living in the countryside in Brazil, leaves few other options.

My husband and I were already making cheese at this point, in small quantities. So we decided to try to get it legalized. This was very difficult to do in 1998, especially because no one in the family was a lawyer and we didn’t know what

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we needed to do. At the time there was no easy access to the Internet.

So we went to our local rural development office in the town of Sacramento where we live, and they told us that if we wanted to make our cheese, which is tradi-tionally aged 18 days, we would have to pasteurize the milk. We couldn’t understand how it was possible that there was no way to legalize this wonderful cheese we made, so full of flavor, with-out having to take the flavor out of it. Traditional cheese that has been made in our state for centu-ries, long before the introduction of pasteurization and industrial cheesemaking.

We went away deeply saddened. We wanted to make something wonderful and it seemed there was no way we could be allowed to make it. We didn’t know, at the time, that there was a law passed in 1954 with which cheeses like ours could be commercialized in the state of Minas Gerais, until one wonderful day a friend of ours brought someone from the rural development office from another city, who brought a copy of the law.

With our hope rekindled we entered into a fight for our right to survive making traditional cheese in the manner it has been made for almost three centuries, and it is has been a fight without end. We were able to win the support of the local rural development office in the neighboring town of Araxá. They had a deputy who wanted to ensure that the traditional cheeses of Minas Gerais could once again be sold legally.

Thanks to their support we were able to get an IMA certification in 2006 (the Farming Institute of the State of Minas Gerais.) We were so proud. We like to say to everyone that before we won our certification, we were clandes-tine and were a little primitive in how we did things, but after the rural development office of Araxá appeared in our lives, we learned to do things better. We proudly talk of our lives before IMA and after.

It was an important thing and improved the quality of our lives. Finally, we could put our product into the supermarket with pride. But we faced a further challenge, being legitimate, our costs were higher, so it was difficult to com-pete with cheeses that were still being made clandestinely. The consumers wants only the lowest price, according to the markets, but we managed to win, slowly but surely, as is the Mineiro Way (someone who lives in Minas Gerais). When people tried our cheeses they loved them, and when we explained our good agricultural practices and high levels of sanita-tion, they bought them and this was very gratifying.

Here on our farm we always did

• See Strongin, p. 6

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CHEESE REPORTERJune 30, 2017 Page 5

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

Canada’s Policies(Continued from p. 1)

This has resulted in a structural surplus of milk protein, exempli-fied by excess production of skim milk powder, “ballooning” to over 100,000 metric tons per annum.

To address this strucutral sur-plus, a new ingredient milk class — initially Ontario Class 6 and now National Class 7 — was cre-ated, with milk priced to proces-sors at the lowest world price to produce dairy protein ingredients.

The impact, according to the 10 dairy groups, has been two-fold: first, the substitution of Canadian dairy ingredients for imported milk proteins, and second, an increase in non-WTO-compliant Canadian milk protein exports. The first is evidenced by the widely reported cancellation of contracts by Cana-dian cheese makers for US-sourced ultrafiltered (UF) milk; the second, by a review of Canadian exports of SMP, the most easily produced milk protein product.

The adoption of Ontario’s Clas 6 in April 2016 saw 2016 SMP exports jump 74 percent to 23.7 thousand tons, and the first four months of 2017 showed a further year-on-year increase of 273 per-cent to 11.9 thousand tons, the groups noted.

Moving this protein onto the “thinly traded” global market of around 2 million metric tons of skim milk powder per annum “will add to the already swelling global supply of milk protein and depress market prices for farmers around the world,” the groups stated.

The adoption of Class 7 is a measure which is inconsistent with a number of commitments that Canada has undertaken, the dairy groups said. For example, in December 2015, Canada became a signatory to the Export Competi-tion Ministerial Decision, thereby undertaking to terminate all sched-uled export subsidies by the end of 2020, maintain a quantity stand-still at 2003-05 levels until then, and refrain from applying export subsidies to new products or new markets.

Canada’s 2016 SMP exports of 23.7 thousand tons is an amount in excess of the standstill agree-ment amount, according to the dairy groups.

As part of the 2003 resolution of a WTO dispute settlement case brought by the US and New Zea-land against Canada’s special milk class for exports, Canada agreed that, for the marketing year begin-ning August 1, 2003, and there-after, Canada’s exports of dairy products for which export subsidies have been granted will not exceed the quantities and budgetary out-lays specified in its WTO schedule.

The upward trend in Canada’s skim milk powder exports is “rap-idly approaching” the 44.9 thou-

sand ton Uruguay Round annual quantity commitment, the groups said.

The dairy groups are “firmly of the view” that the operation of Ontario’s Class 6 and Canada’s Class 7 contravenes Canada’s international commitments.

“Canada’s increasingly pro-tectionist policies are diverting trade with attendant global price-depressing impacts, and are in conflict with the principles of free markets and fair and transparent trade,” the dairy groups said. “We therefore request the authorities of Argentina, Australia, the EU, Mexico, New Zealand, and the US to take all steps available to them to resolve this issue and ensure that Canada complies with its interna-tional obligations.”

“IDFA will use every opportu-nity to urge administration officials and legislators who are working to modernize the North American Free Trade Agreement (NAFTA) to tackle these unfair, illegitimate and protectionist policies,” said Michael Dykes, IDFA’s president and CEO.

“Canada’s revised dairy policy amounts to a ‘beggar-thy-neigh-bor’ approach, damaging not just its neighbor to the south, but also causing harm to other major dairy exporting countries around the

world,” commented Jim Mulhern, NMPF’s president and CEO. “This policy must stop now, before any more damage is done to Ameri-can farmers and those from other nations seeking to compete on a level global playing field.”

“Canada’s revised dairy policy amounts to a ‘beggar-thy-neighbor’

approach...”

—Jim Mulhern, NMPF

“Canada has been adopting pol-icies that run counter to our long-standing agreements and upending what has until recently been a mutually beneficial trade relation-ship,” said Tom Vilsack, USDEC’s president and CEO and a former US secretary of agriculture. “Our trade agreements must be honored and not ignored, or worse, by our closest neighbor.”

Earlier this month, US Secre-tary of Agriculture Sonny Perdue had conducted a series of meetings with Canadian officials, raising the points of disagreement and rein-forcing that these needs need to be resolved, particularly in light of the renegotiation of NAFTA.

USTR Seeks Comments On Performance Of Trade Agreements To Which US Is A PartyWashington—The Office of the US Trade Representative (USTR) and the US Depart-ment of Commerce (DoC) are seeking comments that they will consider as part of their perfor-mance reviews of all bilateral, plurilateral, and multilateral trade agreements to which the US is a party and all trade rela-tions with countries governed by the rules of the WTO.

Comments are due by July 31, 2017. USTR and DoC said they strongly prefer electronic sub-missions made through the fed-eral e-rulemaking portal, www.regulations.gov. The docket number is USTR-2017-0010.

Commenters should submit information related to one or more of the following assess-ments:The performance of indi-

vidual free trade agreements (FTAs) and bilateral invest-ment treaties to which the US is a party. There currently are 14 FTAs in force.The performance of the

WTO agreements with regard to US trade relations with those trading partners with which the US does not have an FTA, but with which the US runs signifi-cant trade deficits in goods. The trading partners subject to these performance reviews include the European Union, China, India, Indonesia, Japan, Malaysia, Switzerland, Taiwan, Thailand, and Vietnam. The performance of US

trade preference programs.In commenting on these

assessments, commenters may want to address any specific harm or benefit resulting from any agreement or treaty, includ-ing: Whether there have been

violations or abuses of the agree-ment, treaty, or program that have harmed US workers or domestic manufacturers, farm-ers, or ranchers; harmed intel-lectual property rights held by US companies and US persons; reduced the rate of innovation in the US; or impaired research and development from occurring in the US. Whether any unfair treat-

ment by trade and investment partners has harmed US work-ers, manufacturers or others. Whether an agreement,

treaty or preference program has not met predictions with regard to new jobs created, favorable effects on the trade balance, expanded market access, low-ered trade barriers, or increased US exports.

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CHEESE REPORTERPage 6 June 30, 2017

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Nelson-Jameson Releases 70th Anniversary Edition Of Its Buyer’s GuideMarshfield, WI—Nelson-Jame-son, Inc. has announced the release of the 70th anniversary edition of its Buyer’s Guide.

This year’s catalog has expanded by over 200 pages, includ-ing signifi-cant growth of the compa-ny’s popular color-coded and metal d e t e c t a b l e programs.

Nelson-Jameson’s color-coded catalog will be bound into the Buyer’s Guide once again, which offers an additional 52 pages of color-coded products.

The simple “How to Order” boxes, terminology and other guides are available throughout the catalog to help provide customers with a one-stop source to find the right products for their applica-tions.

In all, the new Buyer’s Guide includes nearly 900 pages of prod-ucts, helpful guides and technical information.

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StronginContinued from p. 4

only a traditional cure in the way that our grandfather had taught us, and the way that had been passed from generation to generation. We heard about a course that a nongov-ernmental organization, SertaoBras was giving on aging cheeses. They were bringing a French professor named Delphine to teach us how to apply techniques of maturation. I took this course. Afterward, I had a lot of ideas I want to try. I fell in love with the fact that I could use the same cheese that we had been making for generations and aging it differently to come up with a completely different one.

This was in 2016. The woman that organized the class, Débora Perreira then organized a trip for producers to go to the Mundials in Tour in June of 2017, with help from organizations like FAEMG (Federation of Agriculture and Livestock of the State of Minas Gerais). I decided to go, but there was a problem: to be able to trans-port a cheese out of Brazil, you need a special authorization, but there is no such authorization for cheeses like mine, which are treated by some as contraband. Fearful of having my cheeses con-fiscated, I wrapped up my cheese and stuffed it into my suitcase, We got on line at the airport terrified

that our cheeses would be confis-cated. But they weren’t. And when we arrived in France, we already felt we had won a major victory.

But, among the 30 producers who took the trip, 11 went on to win a total of 12 medals. When they posted the results, they posted on a wall, and everyone scrambled to find their result. I was work-ing downstairs at our table talk-ing about Brazilian cheese with the public. My cousin came to me and said ‘I have good news. You have not just won a gold, you won a super gold for your cheese Senzala.’ This was an extraordinary feeling, and a vindication of many years of strubble.

I am hopeful this incredible conquest by Brazilian cheese mak-ers will come to the attention of government officials, and they will start to attend to the necessities of the small producers who are cur-rently confined by laws that make it almost impossible for the producer to survive without being clandes-tine, despite using good practices of quality and aging, and having cen-turies of tradition. There is no jus-tification for this. Scientific studies have shown repeatedly that in our region cheese made artisanally with raw milk only has to be aged for 18 days to be safe just like my fore-bears have done for centuries.

Perhaps someone might not like the taste of my cheese, Senzala,

even though it won the highest title in the world of cheese. They might think it doesn’t taste as good as another cheese, made according to the “official” standards of iden-tity, and that’s fine. But as long as we make safe food we should be able to make what we want, how we want to make it, and be able to sell it legally rather than hiding them or traveling in the middle of the night in order to sell them and survive.

It is my hope that our Brazilian cheeses that are so honored outside of Brazil, will be allowed to enter the Mundials in 2019 with the full support of the Brazilian people. It’s my hope that our government will feel proud for us, being hard-working people, rural survivors who have suffered repression but still had the ideas and creativity to make cheese considered among the best in the world.

Producers in Brazil, at risk and in clandestine situations, should never have to experience the fear we did when leaving Brazil in order to compete and win in international competitions, simply because they try to produce tradi-tional cheese with raw milk. I hope that our achievements will be glo-rified, and in 2019 our cheeses will be legalized.”

I can only imagine 50 years ago, when mass production and ulti-mately unscientific laws devastated small family cheese producers in the US, that someone felt emo-tions very much the same. As in its report on world agriculture in 2009, the UN noted, the rules that apply to mass production do not apply to artisanal production and are too costly for small producers to survive.

We need to focus on good pro-cess and a less antagonistic, more collaborative approach to food safety. DS

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CHEESE REPORTERJune 30, 2017 Page 7

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Leprino Foods, Franklin Foods, General Mills Receive Patents For Cheesemaking MethodsWashington—The US Patent and Trademark Office (USPTO) last week issued a patent for an inven-tion that provides a variety of methods for preparing soft or firm/semi-hard ripened or unripened cheese.

The inventors are Richard K. Merrill and Mayank Singh. The patent was assigned to Leprino Foods Company.

Some cheese manufacturing methods provided by the patent involve blending a cheese curd and one or more ingredients together to form a slurry. The slurry is pro-cessed by performing one or more processes selected from the group consisting of cooking the slurry, subjecting the slurry to high shear conditions, homogenizing the slurry, and adjusting the moisture content of the slurry.

Once the slurry has been pro-cessed, one or more additional ingredients can be mixed into the slurry to form an admixture. The resulting admixture is formed into a cheese. On some methods, the slurry is cooked in the absence of exogenous water.

The ingredients blended into the slurry can be selected from a wide variety of ingredients, includ-ing, but not limited to, nonfat dry milk, a milk protein, an acidity regulator, an acid, an anticaking agent, an antifoaming agent, a coloring agent, an emulsifier, an enzyme preparation, a flavoring agent, a food protein, sequestrants, a stabilizer, a starch, a thickener, an oil, a fat, a cheese powder, a salt, a nutritional supplement, an acid, an enzyme, or a carbohydrate.

Other methods for preparing cheese involve blending a cheese curd, and optionally water and/or

one or more ingredients, to form a slurry. The slurry is processed by cooking the slurry and performing one or more processes selected from the group consisting of subjecting the slurry to high shear condi-tions, homogenizing the slurry and adjusting the moisture content of the slurry. The processed slurry is then shaped and cooled to form the soft or firm/semi-hard cheese.

Meanwhile, the USPTO recently awarded a patent for an invention relating to the field of direct-set milk products, and pro-cesses for making direct-set milk products. The inventors are Jon R. Gutknecht and John B. Ovitt. The patent was assigned to Frank-lin Foods Holdings Inc.

In an example of an implemen-tation of this invention, a process is provided that includes: providing a concentrated milk composition including milk protein; providing a plant fat composition includ-ing plant fat; combining a first amount of the concentrated milk composition together with a sec-ond amount of the plant fat com-position, forming a concentrated milk-plant fat composition having an initial pH and having a concen-tration by weight of water being within a range of between about 49 percent and about 57 percent; combining the concentrated milk-plant fat composition together with an amount of an edible acid, and directly setting the concen-trated milk-plant fat composition, thereby forming a uniform non-separating direct-set milk-plant fat product substantially retaining the milk protein.

In some examples of imple-mentations of the process, the providing the concentrated milk

composition includes providing the concentrated milk composi-tion as including a concentrated milk protein source, wherein the concentrated milk protein source includes aqueous nonfat milk; condensed nonfat milk; nonfat dry milk; or reconstituted nonfat milk.

In further examples of imple-mentations of the process, the providing the concentrated milk composition includes providing the concentrated milk composi-tion as having a concentration by weight of milkfat being less than about 1 percent.

The USPTO also recently awarded a patent for an invention that relates generally to cheese and methods of making cheese, and more specifically to continu-ous processes of making cheese. Inventors are Philip K. Zietlow and Troy D. Bierbaum. The pat-ent was assigned to General Mills, Inc.

Embodiments of the invention include systems and processes for continuously producing cheese, including substitute and imitation cheese. One embodiment includes feeding a first liquid stream com-prised of emulsifying salt, water and cheese powder into a cooker com-prising a twin screw mixer, feeding a second liquid stream comprised of oil and casein or a non-dairy protein into the cooker, process-ing the first liquid stream and the second liquid stream through the cooker to form a cheese composi-tion, and cooling the cheese com-position.

In some embodiments, the pro-cess also includes injecting steam into the cooker. The cheese com-position may be pumped through a forming device. In some embodi-ments, the cooled cheese compo-sition is cut into pieces having a reduced size.

Valley Queen Grows(Continued from p. 1)

of the existing operating systems. The VQ Next project started in March and is expected to be com-pleted in the second half of 2018.

The company plans to hire an additional 25 employees, a 10 per-cent increase to its existing work-force, to build its team to handle the manufacturing capacity.

“This project is another exam-ple of the company’s ongoing commitment to the success of its customers, employees and dairy producers,” said Doug Wilke, Val-ley Queen’s CEO.

Founded in 1929, Valley Queen is a family owned and operated dairy manufacturer that converts 1.5 billion pounds of milk annually into a variety of natural cheeses, dried lactose, WPC80, and anhy-drous milkfat that is marketed and utilized by private label and nation-ally branded food companies.

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CHEESE REPORTERPage 8 June 30, 2017

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Innovation Center For US Dairy Announces Winners Of 2017 Dairy Sustainability AwardsChicago—The Innovation Cen-ter for US Dairy on Wednesday announced the winners of its sixth annual US Dairy Sustainability Awards in a Chicago ceremony.

The awards recognize dairy farms, businesses and partnerships whose practices improve the well-being of people, animals and the planet. Judges evaluated nomina-tions based on their economic, environmental and community impact.

Glanbia Nutritionals, Evanston, IL, received the award for “Out-standing Dairy Processing and Manufacturing Sustainability.” To implement a sustainability plan, Glanbia Nutritionals started with a single plant in Idaho. The team determined priority impact areas, measured social presence, deter-mined metrics to demonstrate progress and identified areas where additional resourcing was needed.

By 2016, the company had rep-licated this approach with three more plants and adopted a global sustainability strategy that prom-ises to “nurture, grow and sustain the lives of our employees, milk

producers, customers, consumers and communities.”

One of the awards for “Out-standing Dairy Farm Sustainabil-ity” went to Kinnard Farms, Casco, WI. The Kinnard family milks more than 7,000 cows, which allows them to maximize water, soil and cow comfort while supporting their rural community. They retain the areas’s young, college-educated residents by employing them to innovate farm technology.

Also receiving an award for “Outstanding Dairy Farm Sustain-ability” was Rickreall Dairy, Rick-reall, OR. Rickreall residents know Louie Kazemier as a good neighbor; in fact, his relationships are the force behind his farm’s frequent improvements. For example, when solids were building up in the manure lagoon, Kazemier initiated trade with a seed farmer to provide fertilizer in exchange for feed.

SwissLane Farms, Alto, MI, also received the “Outstanding Dairy Farm Sustainability” award. The farm is 23 miles from down-town Grand Rapids, Michigan’s second-largest city, which poses

Winners of the sixth annual US Dairy Sustainability Awards were announced at a ceremony in Chicago on Wednesday. They include, from left to right: Louie Kazemier, Rickreall Dairy; Ken Nobis, Michigan Milk Producers Association; Dick Edwards, Oakland View Farms; Tim Rosen, Midshore Riverkeeper Conservancy; Annie Link, SwissLane Farms; Robert Hagevoort, US Dairy Education & Training Consortium; Mark Keller, Kellercrest Registered Holsteins; Lucas Fuess, Glanbia Nutritionals; Lee Kinnard, Kinnard Farms; Matt Nuckols, emcee, Eastview Farms. Not pictured: Mercer Vu Farms.

both pressures from urban sprawl and opportunities to reach people several generations removed from the farm. Since 2006, SwissLane’s Dairy Discovery program has taken advantage of this opportu-nity, offering farm tours that have reached more than 36,000 stu-dents, teachers and families.

Kellercrest Registered Holsteins, Inc., Mount Horeb, WI, received the “Outstanding Achievement in Resource Stewardship” award. The Keller family participated in the Pleasant Valley Watershed Proj-ect, a collaboration between state, local and national agencies to reduce the local watershed’s phos-phorus load. Results were dramatic and positive. The Kellers saw cost savings as well as environmental benefits.

Honorable mention for “Out-standing Achievement in Resource Stewardship” went to Mercer Vu Farms, Mercersburg, PA. The His-song family needed a manure man-agement system that allowed them

to maintain their high standard of cow comfort while protecting the Chesapeake Bay watershed. They developed a system that allows them to use manure solids for cow bedding and for compost, while using phosphorus from the liquid manure as crop fertilizer in a tar-geted application.

The “Outstanding Achieve-ment in Community Partnerships” award went to Oakland View Farms and Midshore Riverkeeper Conservancy, Caroline county, MD. Environmental communi-ties and farmers in the Chesa-peake Bay watershed identified a common goal: improve the com-munity’s water quality through cost-effective projects that could be replicated. They did that with a woodchip bioreactor that elimi-nated nitrogen from agricultural drainage water.

Receiving Honorable Mention for “Outstanding Achievement in Community Partnerships” was the Food Bank of Eastern Michi-gan, The Kroger Co. of Michigan, Michigan Milk Producers Asso-ciation and Michigan State Uni-versity Extension, Novi, MI. The benefits of milk’s nutrient-dense profile have long been established, but MMPA relied on lesser-known qualities to help the residents of Flint, MI, during a crisis in which they were susceptible to lead poi-soning from contaminated water. Calcium and iron can help miti-gate health risks of lead consump-tion.

Through a comprehensive part-nership, 589,824 servings of milk were donated to those in need.

Also receiving Honrable Men-tion for “Outstanding Achieve-ment in Community Partnerships” was the US Dairy Education and Training Consortium Extension, College Station, TX. The need for skilled agricultural professionals in the southwestern US continues to grow, especially as universities across the region have reduced or eliminated their dairy programs.

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Bioengineered Food(Continued from p. 1)

gineered food solely because their nutrition came from food with bio-engineered ingredients.

—What is the amount of a bio-engineered substance present in a food that should make it be con-sidered bioengineered? The law authorizes USDA to determine the amount of a bioengineered substance present in food in order for the food to be disclosed as a bioengineered food.

The amounts of a bioengineered substance that may be present in food in order for the food to be a bioengineered food might be determined in a variety of ways: if a bioengineered substance is near the top of the list of ingredients, by determining the percentage of bio-engineered ingredients in a food product, or by listing any ingredi-ent that was produced through bio-engineering, among others.

—Should AMS consider more than one disclosure category? AMS is considering if it should develop various categories for disclosure and if it should differentiate between those products that a) are bioengi-neered, b) contain ingredients that are bioengineered, or c) contain ingredients derived from bioengi-neered crops or animals.

AMS is considering the advan-tages and disadvantages, based on cost, clarity, and other factors, of using a single disclosure category or multiple disclosure categories.

—What should the require-ments for imports into the US of products covered by the law/regu-

lation be? AMS is considering how the disclosure requirements should be applied to imported products.

—What other factors or condi-tions should AMS consider under which a food is considered a bioen-gineered food? AMS must develop a process to help stakeholders determine whether a food is sub-ject to bioengineered disclosure.

The agency anticipates the process would include consider-ing factors such as: whether a food contains a substance that has been modified using recombinant in vitro DNA techniques and for which the modification could not be obtained through conventional breeding or found in nature; and whether a food requires disclosure based on the predominance of ingredients, among others.

—If a manufacturer chooses to use text to disclose a bioen-gineered food, what text should AMS require for a text disclosure? Currently, some food companies use language compliant with the Consumer Protection Rule 121 from the state of Vermont to iden-tify their food products as bioengi-neered (“Produced with Genetic Engineering,” “Partially Produced with Genetic Engineering,” or “May be Produced with Genetic Engineering”).

AMS is considering whether to allow food companies to continue using these disclosures under the new national bioengineered dis-

closure standard and if their lan-guage is appropriate. AMS is also considering what phrases could be used as a text disclosure for bio-engineered food that consumers would find informative, truthful, and not misleading.

—If a manufacturer chooses to use a symbol to disclose a bioengi-neered food, what symbol should AMS require for disclosure? AMS needs to ensure that the symbol designed for the bioengineered dis-closure is not disparaging toward bioengineering.

—If a manufacturer chooses to use an electronic or digital link to disclose a bioengineered food, what requirements should AMS implement for an electronic or digital link disclosure?

—Should AMS specify in the regulations the type of electronic or digital disclosure manufacturers, e.g. QR code, can use to disclose bioengineered food? What steps should the agency take if an elec-tronic or digital disclosure method becomes obsolete?

—How should AMS define small food manufacturers? AMS is considering using regulatory language similar to that of other federal government agencies that already define small businesses.

—For disclosures by small food companies, what is the appropriate language indicating that a phone number provides access to addi-tional information?

Sassy Cow Recalls Some Fluid Milk, Ice Cream Products Saying It Can’t Prove Products Were Fully Pasteurized Columbus, WI—Sassy Cow Creamery, Columbus, WI, has issued a voluntary recall of several of its dairy products.

During a routine inspection of its equipment, it was discovered that Sassy Cow could not prove with 100 percent certainty that every ounce of its products were fully pasteurized.

Sassy Cow Creamery said it also doesn’t have any evidence or proof that every ounce of its products were not pasteurized during this period.

Fluid milk products being recalled have sell by/best by dates of June 22 through July 13, and include traditional, organic, whole, 2 percent, 1 percent, skim, half and half, heavy cream, whole chocolate, and 1 percent choco-late in gallons, half gallons, quarts, pints and half-pints.

Ice cream products being recalled include all flavors, with best by dates of 10/21/17-1/23/18 and 3/21/18-6/23/18, in three-gallon, 2.5-gallon, half-gallon and quart sizes.

The company said they want to error on the safe side out of care and concern for its customers, as well as peace of mind in the prod-ucts they produce

For more information, visit www.sassycowcreamery.com.

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CHEESE REPORTERPage 10 June 30, 2017

For more information, circle #16 on the Reader Response Card on p. 14

Entry Deadline Is July 21 For World Dairy Expo Championship Dairy Product ContestMadison—The Wisconsin Dairy Products Association (WDPA) has sent out entry booklets for its upcoming World Dairy Expo Championship Dairy Product Contest.

The contest includes a wide variety of dairy products, includ-ing cheese, yogurt, ice cream, sour cream, sour cream-based dips, whipping cream, gelato, sherbet, buttermilk, nonfat dried milk, but-ter, Cottage cheese, whey, fluid milk and an innovative category.

There will be 79 classes for com-panies to compete in. In addition to awarding 76 first place trophies, there will be three Grand Cham-pions: cheese & butter, Grade A products, and ice cream.

A company can submit as many entries as it wants. All entry forms must be mailed to WDPA by July 21, 2017. Once a company has submitted its entry forms and fees, it must ship contest entries during the week of Aug. 14-18, 2017.

All cheese, butter, yogurt, sour cream, Cottage cheese, sour cream based-dips, buttermilk, whipping cream and fluid milk entries will be shipped to the Midwest Refrig-erated Services in McFarland, WI. All ice cream, sherbet, gelato, dried whey products and creative/innovative technology entries will be shipped to UW-Madison Bab-cock Hall.

This year’s cheese category features 26 separate classes. Each entry must be in its original form as hooped, and cheeses cannot be cut or sampled with a trier, minus a few exceptions – 40-pound blocks cut from 640-pound blocks will be allowed; Swiss cheese may have one trier hole; and cheeses cut dur-ing manufacturing such as Feta in brine will be allowed.

Each cheese entry must consist of at least 10 pounds of product, and each cream cheese entry must weigh at least one pound.

There are four classes in the but-ter category, including a Flavored Butter class. All entries must con-tain at least 80 percent milkfat, and must weigh at least 10 pounds.

For fluid milk, this year’s contest features 10 classes. Each entry must consist of a minimum of two half-gallons, and only 2 percent milk is allowed in the White Milk class. Any fat level is acceptable in the Cultured Milk class.

In the cream category, each entry must equal a minimum of two quarts with no aerosol con-tainers. Entries must also contain a minimum of 30 percent milkfat, and the category does not include pre-whipped cream.

The yogurt category has seven classes this year, and each entry must consist of at least 64 ounces of product. There are no restric-

tions on the fat level for entries, and any type of sweetener source is allowed.

The Cottage cheese category has three classes, with any curd size acceptable, and the dairy-based dips category will include five classes, and each sour cream or sour cream-based dip entry must con-sist of a minimum of two 16-ounce containers.

For the ice cream, sherbet, fro-zen yogurt and gelato category, the contest will have 14 separate classes. Each entry must be at least one gallon and comply with federal compositional standards. Any fat level is acceptable, and the product must be shipped on dry ice.

The whey category will include six classes, and each entry must consist of a minimum of a half-pound container, except for whey-based sports/energy drinks that should be at least six 8-ounce con-tainers.

The nonfat dry milk category has one class and each entry must weigh at least a half-pound.

Finally, the creative and inno-vative technologies category is an open category for highlighting cre-ative uses of dairy products. The submitted entry must contain a minimum of 25 percent dairy, and must consist of at least six 16-ounce containers or equivalent volume.

Judging will take place on the following dates: Aug. 22: Cheese and butter

at MATC in Madison. Aug. 23: Yogurt, cottage

cheese, sour cream, fluid milk, but-termilk, sour cream-based dips and whipping cream at MATC. Aug. 24: Ice cream, gelato,

sherbet, whey products and cre-ative/innovative technologies at Babcock Hall on the UW-Madison campus.

The winning entries will then be auctioned off on Tuesday, Oct. 3, during the World Dairy Expo at Madison’s Alliant Energy Center.

A portion of the auction pro-ceeds will be used to fund scholar-ships awarded to students pursuing careers in the dairy industry, as well as sponsorship of the Colle-giate Dairy Products Evaluation Contest.

If you would like more informa-tion, contact the Wisconsin Dairy Products Association at (608) 836-3336 or via email: [email protected]. Complete contest information can be found online at www.wdpa.net.

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CAROLINE EMOND, execu-tive director of Dairy Farmers of Canada (DFC), will step down effective July 4, 2017. Over the next few months, DFC will be conducting a search to find a new executive director. Emond has served as DFC executive director since January 2015, and helped lead Canadian dairy producers reach an agreement in principle with dairy processors..

KAREN SCHMIDT, professor of animal sciences and industry at Kansas State University, assumed the role of president of the Amer-ican Dairy Science Association (ADSA) this week. Schmidt served as vice president of ADSA for the past year, and director of its Dairy Foods Division before that. GEOFFREY DAHL, profes-sor and chair in the department of animal sciences at the Uni-versity of Florida-Gainesville, has been elected vice president, and TRISH DAWSON, a senior scientist with Chr. Hansen, Inc., was elected to a three-year term as ADSA director-dairy foods. JAMES QUIGLEY III of Car-gill Animal Nutrition was also elected to a three-year term as ADSA director-production.

PAUL MIHELICH has been promoted to vice president, sales and marketing, for the operations of Wildeck, Inc. in Waukesha, WI, and Goodyear, AZ. Mihe-lich began working at Wildeck, Inc. as a regional sales manager in 1988.

JANE ELDER KUNZ, co-owner of Traders Point Creamery, recently received the Garden Club of America’s 2017 Con-servation Award for the Cream-ery’s commitment to organic farming, land conservation, and promotion of the sustainable farm-to-table movement. Traders Point Creamery said it is the first USDA certified organic dairy farm in Indiana. The grass-fed dairy farm in Zionsville, IN, uses managed rotational grazing, and feeds kitchen scraps and leftover whey from Traders Point Cream-ery’s cheesemaking goes to the dairy farm’s pigs.

PERSONNEL

RECOGNITION

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CHEESE REPORTERJune 30, 2017 Page 11

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Eden Prairie, WI—Agropur Ingredients this week announced a broadening of the ingredients busi-ness of Agropur Cooperative.

Under the new structure, Agro-pur Ingredients will be comprised of three sectors: Nutrition Solu-tions, Dairy Solutions and Custom Solutions.

The new platform will stream-line the Agropur US processes and allow the Canadian-based dairy cooperative to better serve its base of customers worldwide. Agropur Ingredients is a global supplier of ingredients and services developed to create success in the food, bev-erage and nutritional industries.

Headquartered in Wisconsin,

under the direction of Reneck Cayen, Custom Solutions offers expertise, ingredients and services tailor-made to address unique pro-duction and nutritional needs, Agropur Ingredients noted. As a contract manufacturing provider to the elite of the sports nutrition and wellness industries, the com-pany said it is equipped to assist in all facets of product formulation, manufacturing, testing, packaging and distribution.

As a vertically integrated man-ufacturer, the company is able to offer a full range of ingredient systems to the food and beverage industries. Specialty ingredient brands include Cornerstone Pro-

Agropur Ingredients Unveils Structure To Allow Cooperative To Better Serve Its Customers

tein Products, Keystone Stabilizer Systems, Capstone Anti-Caking Agents, Bakigen Bakery Ingre-dients, Darigen Select Specialty Powders, PZ-44 and Reddi-Sponge Dough Conditioners.

Custom Solutions said it also provides unique ingredients sourc-ing opportunities to better service customer requests and also offers fulfillment services.

Headquartered in Eden Prairie, the Dairy Solutions sector is led by David Curta. Dairy Solutions has a global reach, with 75 percent of its products sold and shipped to countries outside the US.

Dairy Solutions’ products include lactose, deproteinized whey, Crinolac dairy product sol-ids, and Iso Chill 8000 and 8010 whey protein concentrates.

Headquartered in Eden Prairie, MN, under the direction of Polly Olson, the Nutrition Solutions sector produces specialty ingredi-ents used for formulating a variety of products from infant formula to cosmetics, medical foods and pro-tein supplements.

Some of Nutrition Solu-tions’ offerings include: BiPRO, a whey protein isolate (WPI) produced from pasteurized whey through Agropur’s proprietary ion exchange technology; glycomacro-peptide, a casein-derived protein fraction that is free of phenylala-nine; alpha-lactalbumin; BioZate 7&3 hydrolyzed whey proteins; and Iso Chill 9000 and 9010 whey proteins.

For more information, visit www.agropuringredients.com.

Campbell Plant(Continued from p. 1)

this acquisition is an investment by our member owners towards continued and long-term growth for our cooperative and the Camp-bell facility.”

“We are proud to be able to keep manufacturing jobs within the community while offering additional products and manufac-turing capabilities to our custom-ers,” Webster added.

Upstate Niagara has also reached an agreement with Empire State Development (ESD), committing to invest $10 million and retain the remaining 125 jobs and grow employment back to no less than 150 within one year. In return, ESD has offered a grant of up to $5 million to assist with transitioning the facility, including the purchase and installation of machinery and equipment.

Mullen and Webster gave their “sincerest thanks” to New York Gov. Andrew Cuomo, US Sen. Chuck Schumer (D-NY), and all federal, state and local government representatives.

“This agreement gives this facil-ity a new lease on life, where it will continue to be an economic engine and major employer in the Campbell community for years to come,” Cuomo said. “Make no mis-take: this plant was in real danger of closing, which would have been devastating locally and caused rip-ple effects across the entire region and New York’s dairy industry.”

“Working together through many challenges, for over a year, we went from a grim situation, where the Campbell plant was on the verge of being boarded up, to where we are today: an Upstate New York company will buy the plant and keep it open for busi-ness, to the great benefit of scores

and scores of the plant’s workers, as well as for regional dairy farmers and the local economy,” Schumer said.

In November 2015, Cuomo and Schumer had worked with Kraft-Heinz officials to reach an agreement to prevent the clo-sure of three facilities and lay-offs of nearly 1,000 employees in multiple locations in Upstate New York. Under the agreement,

Kraft-Heinz continued operating the Lowville, Avon and Walton plants while investing tens of mil-lions of dollars into modernizing operations.

Also, Kraft-Heinz deferred its planned closure of the fourth facil-ity, the Campbell plant, for one to two years, during which time the company worked with state, fed-eral and local officials to identify a new operator.

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

www.cheesereporter.com/events.htmSUPPLIER NEWS

COMPANY NEWS

PEOPLE

July 10 - 11: 2017 WDPA Dairy Symposium. The Landmark Resort, Egg Harbor, WI. Visit www.wdpa.net/dairy-sympo-sium

•July 26-29: 2017 ACS Annual Conference & Cheese Compe-tition, Denver, CO. Visit www.cheesesociety.org.

•Aug. 10-11: Idaho Milk Proces-sors Association Annual Meet-ing, Sun Valley Resort, Sun Valley, ID. Visit www.impa.us.

•Sept. 10-12: NYSCMA Fall Meeting, Islands Harbor Hotel, Clayton, NY. For more details, visit www.nyscheesemakers.com.

•Sept. 17-20: International Whey Conference, Sheraton Grand Hotel, Chicago, IL. Visit www.internationalwheyconference.org.

•Sept. 19-22: Process Expo, McCormick Place, Chicago, IL. For details or to register, visit www.myprocessexpo.com.

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Service Technician – Pleasant Prairie, WI - Central Valley, CA - Dallas, TXJob Description: Field Service Technician performs heat exchanger preventive maintenance inspections, repairs, troubleshooting, supervis-es installations and training programs in the field at customer locations throughout the United States. The Field Service Technician accurately reports these service visits for AGC customers for planning, corrective actions and to assist with proper plant preventive maintenance. Job Duties: Field Service Technician performs the following duties and other special projects upon request: • Field PlateCheck™ inspections, heat exchanger repairs troubleshooting, installation and supervision, and training at customer locations - including travel to customer locations. • We anticipate you will perform four to five inspections or supervision service calls per month depending on the location and time involved in travel. • Some of the inspections and associated travel will be during the weekend. Experience: Excellent communication skills and basic computer knowledge a must. Technical school training or college degree a plus. Maintenance experience or military role is also a positive advantage.

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Agenda Set For Global Cheese Technology Forum; To Be Held Oct. 24-26 In RenoReno, NV—The speaker lineup for this year’s Global Cheese Tech-nology Forum has recently been announced.

The three-day conference, hosted by the American Dairy Products Institute (ADPI), will be held here Oct. 24-26 at the Pep-permill Resort. It kicks off Tuesday evening with a welcome reception, and begins Wednesday morning with a senior leadership panel dis-cussion on industry challenges and opportunities.

Panelists will include Louise Hemstead, Organic Valley; Kyle Jensen, Hilmar Cheese Company; Doug Simon, Agropur, Inc.; and Doug Wilke, Valley Queen Cheese Company.

A session on dairy ingredi-ents for cheese will feature South Dakota State University’s Lloyd Metzger on the use of MPC or micellar casein as an ingredient in process cheese; John Lucey of the Wisconsin Center for Dairy Research on standardization of lactose to protein ratio and effect on cheese quality; and SDSU’s stu-dent speaker Steve Beckman on

optimizing microfiltration for max-imum removal of whey proteins.

Ross Christieson with the US Dairy Export Council will give the luncheon speech on new mar-ket opportunities, followed by a session on understanding cheese microbiology.

Speakers will include Manin Morin, UC-San Diego, on under-standing how pathogens invade cheese microbial communities; Sylvain Moineau, University of Guelph, on roles of streptococcus thermophilus in modern cheese-making and ripening; and Craig Oberg, Weber State University, on Lactobacillus wasatchensis as a NSLAB causing slits and gassy cheese.

Another session on new cheese manufacturing technologies will feature CDR’s Dean Sommer on the use of preacidification when making cheese with membrane concentrated milk; Janice John-son, PhD., Cargill, Inc., on salt considerations for cheesemaking; and student speaker Meghan Keck, Massey University, on mathemati-cal modeling of salt transport in

cheese curds. A wine and cheese reception will take place Wednes-day evening.

The final day begins with a ses-sion on whey processing, products and applications.

Topics include functionalization of whey protein by reactive super-critical fluid extrusion by Syed Rizvi, Cornell University; and integrating membrane process-ing to produce milk fractions for making whey and infant formula, Seamus O’Mahony, University of College Cork

Cornell University’s Dave Bar-bano will cover recent advances in infrared analysis of milk and cheese, and Agri-Food Canada’s Michel Britten will discuss the impact of cooker/stretcher thermo-mechanical conditions on fat and moisture of Mozzarella.

After lunch, the final panel session on training and work-force development will feature Sheri Cole, Tillamook Cheese; Bill Graves, Dairy Management, Inc.; John Lucey, CDR; Seamus O’Mahony, University of College Cork; and Michael Parella, Uni-versity of Idaho. Cost to attend is $495 for ADPI members and $545 for non-members.

To register online, visit www.adpi.org.

NCCIA Conference Scheduled For Oct. 10-12 In Rochester, MNRochester, MN—Online registra-tion will soon be available for the North Central Cheese Industries Association’s (NCCIA) annual conference, to be held here Oct. 10-12 at the Canadian Honker/Kahler Apache Hotel.

This year’s event coincides with the Midwest Dairy Research Forum Oct. 10-11, and also includes the annual cheese judging contest, cheese auction, and a full lineup of educational sessions from academ-

ics and experts in the cheese and dairy industry.

The early registration deadline is Oct. 1, and cost to attend is $165 for NCCIA members and $195 for non-members.

After the deadline, cost is $175 for members and $205 for non-members.

Sponsorship opportunities are also available, including sponsor-ships for the social hour and hos-pitality suites.

More details on the NCCIA, including full agenda, will soon be available at www.northcentral-cheese.org.

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CHEESE REPORTERJune 30, 2017 Page 13

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For additional information contact: John Haberkorn, Dairy Science Department, Telephone: 605/688-5480; Email: [email protected] (inquiries only). Applications should be received by August 1, 2017. For a complete listing of job responsibilities, detailed list of quali�cations and to apply, visit http://Your-Future.sdbor.edu, search for the position, and follow the electronic application process. For questions on the electronic employment process, contact SDSU Human Resources at (605) 688-4128.

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CHEESE REPORTERPage 14 June 30, 2017

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 all-time record

HISTORICAL MILK PRICES: CLASS III

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June 28, 2017—AMS’ National Dairy Prod-ucts Sales Report. Prices included are pro-vided each week by manufacturers. Prices collected are for the (wholesale) point of sale for natural, unaged Cheddar; boxes of butter meeting USDA standards; Extra Grade edible dry whey; and Extra Grade and USPH Grade A nonfortified NFDM. •Revised

WEEK ENDINGStyle and Region June 24 June 17 June 10 June 3

40-Pound Block Cheddar Cheese Prices and Sales Weighted Price Dollars/PoundUS 1.6959 1.7057 1.7152 1.6758Sales Volume PoundsUS 11,777,760 13,504,666 11,721,705• 11,551,984

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

Weighted Price Dollars/PoundUS 1.5724 1.5987• 1.6330 1.6128 Weighted Price Adjusted to 38% Moisture US 1.4957 1.5227• 1.5547 1.5371Sales Volume PoundsUS 11,094,954 11,656,724• 12,832,612 11,961,197Weighted Moisture Content PercentUS 34.82 34.91 34.88 34.95

Butter

Weighted Price Dollars/PoundUS 2.5503 2.4539• 2.3887• 2.3215Sales Volume PoundsUS 2,460,870 5,521,117• 6,472,040• 5,883,309

Dry Whey Prices

Weighted Price Dollars/PoundsUS 0.4757 0.4920• 0.4993• 0.4992•Sales Volume US 6,571,876 6,337,459• 6,631,364• 7,081,206•

Nonfat Dry Milk

Average Price Dollars/PoundUS 0.9212 0.9198• 0.9216 0.8961Sales Volume PoundsUS 17,337,158 12,005,019• 14,868,071 18,227,650

DAIRY PRODUCT SALES

Class III - Cheese Milk Price 2016 2017PRICE (per hundredweight) $13.22 $16.44SKIM PRICE (per hundredweight) $4.96 $7.22

Class II - Soft Dairy Products 2016 2017PRICE (per hundredweight) $14.12 $16.15BUTTERFAT PRICE (per pound) $2.4179 $2.7136SKIM MILK PRICE (per hundredweight) $5.86 $6.89

Class IV - Butter, MP 2016 2017

PRICE (per hundredweight) $13.77 $15.89

SKIM MILK PRICE (per hundredweight) $5.53 $6.65

BUTTERFAT PRICE (per pound) $2.4109 $2.7066

NONFAT SOLIDS PRICE (per pound) $0.6148 $0.7384

PROTEIN PRICE (per pound) $1.4807 $1.7545

OTHER SOLIDS PRICE (per pound) $0.0628 $0.3014

SOMATIC CELL Adjust. rate (per 1,000 scc) $0.00072 $0.00081

AMS Survey Product Price Averages 2016 2017

Cheese, US 40-block, NASS $1.4477 $1.6293Butter, CME $2.1623 $2.4065Nonfat Dry Milk $0.7888 $0.9137Dry Whey $0.2601 $0.4917

Class Milk & Component PricesJune 2016 with comparisons to June 2017

DAIRY FUTURES PRICESSETTLING PRICE *Cash SettledDate Month Class III* Class IV* Dry Whey* NDM* Butter* Cheese*6-23 June 17 16.35 15.89 49.250 91.100 242.675 1.61906-26 June 17 16.35 15.89 49.250 91.100 242.675 1.61906-27 June 17 16.35 15.89 49.250 91.370 242.675 1.61906-28 June 17 16.44 15.89 49.170 91.525 240.650 1.62906-29 June 17 — — — — — —

6-23 July 17 16.05 16.60 46.300 89.700 263.425 1.59306-26 July 17 15.89 16.76 46.300 89.200 266.675 1.57906-27 July 17 15.88 16.76 46.000 88.275 263.725 1.58006-28 July 17 15.82 16.76 46.250 88.500 265.650 1.57506-29 July 17 15.70 16.71 45.100 88.550 265.225 1.5680

6-23 August 17 16.97 16.77 43.750 90.500 265.000 1.70406-26 August 17 16.77 16.88 43.875 90.575 269.675 1.68306-27 August 17 16.67 16.88 43.875 89.250 265.500 1.67506-28 August 17 16.60 16.88 43.600 89.900 268.500 1.66906-29 August 17 16.41 16.84 42.325 88.900 267.500 1.6560

6-23 September 17 17.16 16.82 41.050 91.550 265.000 1.73006-26 September 17 16.97 16.95 41.050 91.575 268.900 1.71806-27 September 17 16.87 16.95 41.500 89.975 266.500 1.71106-28 September 17 16.78 16.95 41.000 90.525 267.650 1.70106-29 September 17 16.57 16.80 40.000 89.050 266.750 1.69006-23 October 17 17.20 16.89 39.750 92.800 264.425 1.75506-26 October 17 17.12 17.06 39.750 93.075 267.000 1.74306-27 October 17 17.07 17.06 39.750 91.125 263.450 1.74306-28 October 17 16.97 17.07 39.550 91.400 264.500 1.73506-28 October 17 16.97 17.07 39.550 91.400 265.025 1.72506-23 November 17 17.12 16.95 39.425 93.400 248.250 1.74506-26 November 17 17.10 17.22 39.425 94.025 265.000 1.74506-27 November 17 17.06 17.17 39.425 92.550 262.500 1.74506-28 November 17 16.97 17.13 39.425 92.550 264.800 1.73706-29 November 17 16.84 16.89 38.250 91.025 264.500 1.7310

6-23 December 17 16.96 16.26 39.175 95.200 233.000 1.74006-26 December 17 16.98 16.56 39.175 95.525 251.975 1.74006-27 December 17 16.95 16.56 39.175 94.100 250.000 1.74006-28 December 17 16.82 16.56 39.175 94.125 250.000 1.73006-29 December 17 16.75 16.42 38.000 92.500 250.000 1.7230

6-23 January 18 16.68 16.01 38.025 96.750 233.000 1.72506-26 January 18 16.70 16.15 38.025 97.850 233.000 1.72506-27 January 18 16.70 16.15 38.025 96.050 233.000 1.72506-28 January 18 16.57 16.15 38.025 96.075 233.000 1.71506-29 January 18 16.53 16.01 38.025 94.300 233.000 1.71506-23 February 18 16.65 16.27 38.025 99.150 231.500 1.72506-26 February 18 16.65 16.24 38.025 100.000 231.500 1.72506-27 February 18 16.65 16.24 38.025 98.275 231.500 1.72506-28 February 18 16.50 16.24 38.025 98.200 231.500 1.72506-29 February 18 16.52 16.16 38.025 96.875 231.500 1.7160

6-23 March 18 16.53 16.45 38.250 100.525 221.525 1.72206-26 March 18 16.53 16.40 38.250 100.675 231.525 1.72206-27 March 18 16.53 16.40 38.250 100.675 231.525 1.72006-28 March 18 16.48 16.40 38.250 100.175 231.525 1.71006-29 March 18 16.53 16.27 38.250 98.875 231.525 1.7160

6-23 April 18 16.60 16.49 38.750 101.325 229.950 1.71006-26 April 18 16.60 16.49 38.750 101.350 229.950 1.71006-27 April 18 16.60 16.49 38.750 101.350 229.950 1.71006-28 April 18 16.37 16.49 38.750 100.600 229.950 1.71006-29 April 18 16.44 16.43 38.750 100.775 229.950 1.7050

Interest - June 29 25,779 3,316 4,143 5,641 5,185 20,961

$11.00

$12.00

$13.00

$14.00

$15.00

$16.00

$17.00

$18.00

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

2017 2016

Class III Milk Price Tracker, 2017 vs 2016

$1.25

$1.35

$1.45

$1.55

$1.65

$1.75

$1.85

$1.95

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

40-Pound Block Avg

CME vs AMS

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CHEESE REPORTERJune 30, 2017 Page 15Page 15

DAIRY PRODUCT MARKETSAS REPORTED BY THE US DEPARTMENT OF AGRICULTURE

WHOLESALE CHEESE MARKETS

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

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

06/26/17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,148 104,82606/01/17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,913 100,336Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,235 4,490

NATIONAL - JUNE 23: Milk remains available for cheese production throughout the country. Spot milk flowing into vats in the Midwest has edged back, as spot milk loads were reported from $1.00 to $4.00 under Class III. Production is strong in the Northeast and West. However, midwestern production has reportedly eased a bit, as inventory management remains a focal point of many midwestern cheese makers. Cheese stocks are generally long throughout all regions. Western contacts report that a bulk of the inventories are process cheese stocks. Domestic demand reports in the Northeast are moderate to light. Sales in the Midwest are slow to steady. Retail demand in the West has improved, while food service has slowed a bit. The large block to barrel price difference continues to create a feeling of market uncertainty for cheese producers.

NORTHEAST- JUNE 28: Eastern cheese manufacturers are not seeing any notable departures from the previous week’s production rates. Milk supplies are fairly stable at adequate levels. Interest for natural and process cheeses is somewhat quiet. Sources report some movement on Swiss cheese, as the Fourth of July holiday approaches. Cheddar cheese interest is slow to fair, catering generally to replacement needs. Inventories are growing.

Wholesale prices, delivered, dollars per/lb:Cheddar 40-lb blocks: $2.0075 - $2.2925 Process 5-lb sliced: $1.5075 - $1.9875Muenster: $1.9925 - $2.3425 Swiss Cuts 10-14 lbs: $3.2000 - $3.5225

MIDWEST AREA - JUNE 28: Although extra loads of milk are not as prevalent as they were over the last few weeks, some Midwest cheese makers report loads of distressed milk are still available at $1 to $3 below Class. Manufacturers report running full schedules, but intakes have eased back a load or two, allowing them to do quick repairs and maintenance as needed. There is an expectation of more available loads over the Fourth of July holiday and cheese makers will have to weigh the pros and cons of taking on any additional milk. Demand is mixed. Some contacts say curds and readily consumed product orders are strong. Some processors report demand from other food manufacturers and foodservice businesses is steady and cheese continues to move well through regular contracts. And finally, a few other industry contacts think cheese orders are lackluster. Inventories are heavy for both blocks and barrels. Some industry contacts suggest the all-time high for total natural cheese stocks may represent efforts by cheese makers to find homes for heavy milk intakes through various cheese aging programs for hard Italian cheeses, aged Cheddar and other hard cheeses.

Wholesale prices delivered, dollars per/lb: Process 5# Loaf: $1.4450 - $1.8050Brick/Muens 5# Loaf: $1.9325 - $2.3575 Cheddar 40# Block: $1.6600 - $2.0550Monterey Jack 10#: $1.9075 - $2.1125 Blue 5# Loaf: $2.2000 - $3.1875Mozzarella 5-6# (LMPS): $1.7325 - $2.6725 Grade A Swiss 6-9#: $2.7175 - $2.8350

WEST - JUNE 28: Western cheese inventories continue to be long for both barrels and blocks. Industry contacts say cheese loads with a little more age are proving harder to move. Domestic demand is fair. Foodservice requests are perhaps slightly lower, but retail demand is steady. Cheese seems to be moving well through regular contracts, but end users are not asking for a lot of extra loads. Industry contacts hope the price differences between US and international markets can help spur on some additional sales, but large volumes of exports have yet to materialize. Production is active and is pushed on by plentiful milk supplies.

Wholesale prices delivered, dollars per/lb: Process 5# Loaf: $1.4325 - $1.6900Cheddar 40# Block: $1.6925 - $2.1375 Cheddar 10# Cuts: $1.8725 - $2.0925Monterey Jack 10#: $1.8825 - $2.0425 Grade A Swiss 6-9#: $2.7775 - $3.2075

FOREIGN -TYPE CHEESE - JUNE 28: Exports to Southern European countries continue to grow. Cheese availability is limited. Processors have already sold out their supplies to contractors and are not taking additional requests from new customers. Larger volumes of milk are currently going into the manufacturing of cheese. However, the quantity produced is still not enough to fulfill all the demand. Manufacturers are struggling to find the components needed for extra cheese production. Due to weather conditions, the quantity of milk delivered and the components in milk are expected to decrease.

Selling prices, delivered, dollars per/lb: Imported DomesticBlue: $2.6400 - 5.2300 $2.0775 - 3.5650Gorgonzola: $3.6900 - 5.7400 $2.5850 - 3.3025Parmesan (Italy): 0 $3.4675 - 5.5575Romano (Cows Milk): 0 $3.2675 - 5.4175Sardo Romano (Argentine): $2.8500 - 4.7800 0Reggianito (Argentine): $3.2900 - 4.7800 0Jarlsberg (Brand): $2.9500 - 6.4500 0Swiss Cuts Switzerland: 0 $3.2375- 3.5600Swiss Cuts Finnish: $2.6700- 2.9300 0

NATIONAL - JUNE 23: Cream availabil-ity is tightening. Some butter producers are tight on cream supplies and with the limited supply, a number of manufacturers are pur-chasing as many cream spot loads as pos-sible. Production is mixed this week. Some churns are running at full swing to store bulk butter for needs later in the year. Yet, a num-ber of churns are shut off for maintenance and cream supplies are being sold. Stocks are manageable to heavy. Butter demand is steady as butterfat continues to be a primary driving force within the dairy industry.

NORTHEAST - JUNE 28: Northeastern print butter sales activities are active as retail channels advertise butter in weekly announcements. Cream multiples are strong as manufacturers have a high demand for cream. Butter production is strong to light as a number of churns are operating on full schedules, and other churns are on light schedules due to maintenance and cream supplies being sold. Inventories are adequate for contractual needs. With milkfat in high demand, butter prices are showing strength in domestic and global markets.

CENTRAL - JUNE 28: The status quo for butter production, in general, remains mostly active with moderate clearance, as the balance of output moves into stor-age. Salted butter supplies are adequate but unsalted volumes are considered tight

in some channels. Manufacturers expect increased butter production as some cream plants close for the July 4 holiday. However, the market is preparing for lower trending milk production and butterfat declines to deter available cream. Hence, in the next few weeks, the producers expect that cream will be readily absorbed into Class II ice cream operations, prompting reductions in churning rates, which is typical for this time of year. Some buyers note this as a cause of the premium butter price. Bulk butter prices linger at 4 to 7 cents over the market as some sources note purchases of fresh but-ter, as opposed to frozen, at the lower end of market prices. With current interest at good to moderate levels, there are indications of a downturn in orders this week that the market attributes to the upcoming holiday.

WEST - JUNE 28: Some butter proces-sors are choosing to slow their butter churns and sell off their cream to ice cream and other Class II manufacturers because of the strong milkfat prices. Butter inventories are season-ally high and manufacturers are managing stocks closely to assure they have the but-ter needed to meet the expected high Q3/Q4 demand. End users also are very much aware of year-end butter needs. Buyers are eager to secure butter for current and future requirements. Some industry contacts sug-gest a few end users are seeking quotes for available butter into 2018.

ORGANIC DAIRY - RETAIL OVERVIEW

Approaching Independence Day, conventional ice cream ads are the single largest advertised item by package size, with ad numbers up 6 percent from last week. The US weighted average advertised price for 48- to 64-ounce containers is up 15 cents, to $3.18. There are no ads for organic ice cream. Conventional 1-pound butter ad numbers increased 83 percent, with an average price of $3.86, up 70 cents. Organic 1-pound butter has an average price of $4.99, an organic price premium of $1.13. The US advertised price for 8-ounce conventional cheese blocks averaged $2.61, up 20 cents from last week. The US advertised price for 8-ounce organic cheese blocks averaged $3.79, down 2 cents. The advertised price for conventional 8-ounce shred cheese averaged $2.43, up 12 cents from last week, as ads decreased 30 percent. The advertised price for organic 8-ounce shred cheese averaged $3.80, up 1 cent. Conventional cheese ad numbers declined 32 percent this week, while organic cheese ad numbers increased 70 percent. The organic half-gallon milk price premium this week is $1.25. Organic milk advertisement numbers decreased 83 precent, and ad numbers for conventional milk decreased 57 percent.

National Weighted Retail Avg Price: Butter 1 lb: $4.99Cheese 8 oz block: $3.79Cheese 8 oz shred: $3.80Cottage Cheese 16 oz: $3.42Cream Cheese 8 oz: $2.59

Yogurt 4-6 oz: $1.50Yogurt 32 oz: $3.79Greek Yogurt 4-6 oz: $1.50Sour Cream 16 oz: $2.02Milk ½ gallon: $3.51Milk gallon: $5.99

RETAIL PRICES - CONVENTIONAL DAIRY - JUNE 30Commodity

Butter 1#

Cheese 8 oz block

Cheese 1# block

Cheese 2# block

Cheese 8 oz shred

Cheese 1# shred

Cottage Cheese

Cream Cheese

Ice Cream 48-64 oz

Flavored Milk ½ gallon

Flavored Milk gallon

Milk ½ gallon

Milk gallon

Sour Cream 16 oz

Yogurt (Greek) 4-6 oz

Yogurt (Greek) 32 oz

Yogurt 4-6 oz

Yogurt 32 oz

US NE SE MID SC SW NW

3.86 3.84 3.85 2.99 3.66 4.69 3.99

2.61 2.26 3.12 2.17 2.53 2.51 2.19

3.73 2.99 4.01 NA 2.50 3.99 3.50

5.92 NA NA 5.99 NA 5.72 6.12

2.43 2.45 2.52 2.19 2.19 2.68 2.32

4.07 3.99 4.12 NA 3.75 NA NA

1.90 1.95 1.98 1.16 2.09 1.61 1.46

1.81 1.81 1.78 1.66 1.80 1.99 1.60

3.18 2.77 3.34 2.86 3.49 3.16 3.28

2.57 2.99 NA 1.85 2.80 NA NA

3.44 4.29 NA 2.99 NA NA NA

2.26 NA NA NA 2.16 NA NA

3.66 NA 3.69 2.50 NA NA NA

1.70 1.63 1.88 1.49 1.60 1.70 1.34

.97 1.00 .94 .97 .94 .82 .97

4.79 5.01 NA 3.79 4.99 NA NA

.53 .50 NA .57 .66 .48 NA

2.92 2.74 3.78 1.99 2.99 3.00 NA

Butter 1# 3.86 3.84 3.85 2.99 3.66 4.69 3.99

Cheese 1# block 3.73 2.99 4.01 NA 2.50 3.99 3.50

Cheese 8 oz shred 2.43 2.45 2.52 2.19 2.19 2.68 2.32

Cottage Cheese 1.90 1.95 1.98 1.16 2.09 1.61 1.46

Ice Cream 48-64 oz 3.18 2.77 3.34 2.86 3.49 3.16 3.28

Flavored Milk gallon 3.44 4.29 NA 2.99 NA NA NA

Milk gallon 3.66 NA 3.69 2.50 NA NA NA

Yogurt (Greek) 4-6 oz .97 1.00 .94 .97 .94 .82 .97

Yogurt 4-6 oz .53 .50 NA .57 .66 .48 NA

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

NATIONAL - CONENTIONAL DAIRY PRODUCTS

WHOLESALE BUTTER MARKETS

NDM - CENTRAL: Low/medium heat nonfat dry milk (NDM) prices in the Central dipped across both prices series this week. Spot transactions have been irregular, but offers remain in good quantity. Low/medium heat NDM production is active as dryers are operating on steady schedules. Inventories are available for contractual needs. The low/medium heat NDM market undertone is unsettled as some market participants do not anticipant changes to near term weakness. Overall, the tone is leaning generally towards a buyer’s mar-ket. High heat NDM prices decreased on the top of the range this week. Spot sale trading of high heat NDM is mild. Produc-tion is limited as low/medium heat NDM has filled drying schedules.

NDM - EAST: Prices for eastern low/medium heat NDM slipped on both ends of both the price range and mostly price series this week. With milk supplies still long in parts of the East, low/medium heat NDM production is strong as dryers

are running on full schedules. Inventories are manageable to long. Interest for low/medium heat NDM is steady to weakening as a number of market participants have a need for low/medium heat and some dairy industry individuals are in a watch and see approach to the spot prices.

NDM - WEST: The market tone is unsettled. However, some industry par-ticipants believe that the market is starting to show signs of fundamental correction. Some contacts report that not many spot sales are taking place at prices on the low end of the range. However, variably priced contracts are being fulfilled as sched-uled. Demand for NDM is mainly steady, although ice cream manufacturers are tak-ing on a few more loads. Spot sales are fair. Production is regular, and inventories are still at elevated levels. High heat non-fat dry milk prices moved slightly lower at the bottom of the price range. The market undertone continues to be stable. Produc-tion is limited, and supplies are still tight.

DRY DAIRY PRODUCTS - JUNE 29

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CHEESE REPORTERPage 16 June 30, 2017

CME CASH PRICES - JUNE 26 - JUNE 30, 2017Visit www.cheesereporter.com for daily prices

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

MONDAY $1.3675 $1.5250 $2.6225 $0.8450 June 26 (-¼) (-1½) (+3¼) (-¼)

TUESDAY $1.3675 $1.5250 $2.6250 $0.8425 June 27 (NC) (NC) (+¼) (-¼)

WEDNESDAY $1.3700 $1.5100 $2.6400 $0.8450 June 28 (+¼) (-1½) (+1½) (+¼)

THURSDAY $1.3500 $1.5100 $2.6400 $0.8450 June 29 (-2) (NC) (NC) (NC)

FRIDAY $1.3525 $1.5250 $2.6425 $0.8450June 30 (+¼) (+1½) (+¼) (NC)

Week’s AVG $1.3615 $1.5190 $2.6340 $0.8445 Change (+0.0105) (-0.0490) (+0.0440) (-0.0245)

Last Week’s $1.3510 $1.5680 $2.5900 $0.8690AVG

2016 AVG $1.6285 $1.5830 $2.3340 $0.8755Same Week

MARKET OPINION - CHEESE REPORTERCheese Comment: On Monday, 1 car of blocks was sold on an offer at $1.5250, which lowered the price. Tuesday’s block market activity was limited to unfilled bids below $1.5250 and uncovered offers of 2 cars at $1.5250, which left the price unchanged. Ten cars of blocks were sold Wednesday, the first 9 at $1.5050 and the last at $1.5100, which set the price. On Thursday, 8 cars of blocks were sold, all at $1.5100, which left the price unchanged. Four cars of blocks were sold Friday, all on bids at $1.5250, which raised the price. The barrel price declined Monday on an uncovered offer of 1 car at $1.3675, increased Wednesday on offer-based sales of 2 cars at $1.3700, fell Thursday on a bid-based sale of 1 car at $1.3500, and rose Friday on a bid-based sale of 1 car at $1.3525.

Butter Comment: The butter price increased Monday on an unfilled bid for 1 car at $2.6225, rose Tuesday on a bid-based sale of 1 car at $2.6250, increased Wednes-day on an offer-based sale of 1 car at $2.6400, and rose Friday on an uncovered offer of 1 car at $2.6425 (following an offer-based sale of 1 car at $2.6475).

WHEY MARKETS - JUNE 26 - JUNE 30 , 2017

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

‘04 1.4320 1.7132 2.1350 2.2204 2.0363 1.9300 1.7458 1.5408 1.7656 1.6475 1.9238 1.7083‘05 1.5775 1.6145 1.5527 1.4933 1.4044 1.5313 1.6210 1.6861 1.6988 1.6204 1.4260 1.3552‘06 1.3368 1.1930 1.1663 1.1632 1.1755 1.1643 1.1645 1.3035 1.3170 1.3206 1.2915 1.2405‘07 1.2248 1.2187 1.3218 1.3725 1.4825 1.5019 1.4913 1.4464 1.3783 1.3020 1.3590 1.3190‘08 1.2246 1.2088 1.3454 1.3905 1.4750 1.5001 1.5385 1.6279 1.6973 1.7320 1.6165 1.2007‘09 1.1096 1.1097 1.1770 1.2050 1.2526 1.2235 1.2349 1.2000 1.2199 1.2830 1.5008 1.3968‘10 1.3950 1.3560 1.4641 1.5460 1.5896 1.6380 1.7787 1.9900 2.2262 2.1895 1.9295 1.6327‘11 2.0345 2.0622 2.0863 1.9970 2.0724 2.1077 2.0443 2.0882 1.8724 1.8295 1.7356 1.6119‘12 1.5077 1.4273 1.4895 1.4136 1.3531 1.4774 1.5831 1.7687 1.8803 1.9086 1.7910 1.4848‘13 1.4933 1.5713 1.6241 1.7197 1.5997 1.5105 1.4751 1.4013 1.5233 1.5267 1.6126 1.5963‘14 1.7756 1.8047 1.9145 1.9357 2.1713 2.2630 2.4624 2.5913 2.9740 2.3184 1.9968 1.7633‘15 1.5714 1.7293 1.7166 1.7937 1.9309 1.9065 1.9056 2.1542 2.6690 2.4757 2.8779 2.3318‘16 2.1214 2.0840 1.9605 2.0563 2.0554 2.2640 2.2731 2.1776 1.9950 1.8239 1.9899 2.1763‘17 2.2393 2.1534 2.1392 2.0992 2.2684 1.6022

HISTORICAL MONTHLY AVG BUTTER PRICES

For more information, circle #25 on the Reader Response Card on p. 14

RELEASE DATE - JUNE 29, 2013

Animal Feed Whey—Central: Milk Replacer: .3000(NC) – .4725(-¾)

Buttermilk Powder: Central & East: .8400(NC) – .9100(NC) West: .8200(-1) - .9400(NC) Mostly: .8800(NC) - .9200(NC)

Casein: Rennet: $2.7000(NC) – $3.0000(NC) Acid: $3.4000(NC) - $3.6500(NC)

Dry Whey—Central (Edible): Nonhygroscopic: .3500(NC) – .5600(+1) Mostly: .3900(-1) – .4850(NC)Dry Whey–West (Edible): Nonhygroscopic: .3800(-2) – .5150(-½) Mostly: .4100(NC) – .4650(-½)

Dry Whey—NE: .3600(-3) — .5250(-¾)

Lactose—Central and West: Edible: .2950(-2½) –.5500(NC) Mostly: .3400(-1) –.4400(NC)

Nonfat Dry Milk —Central & East: Low/Medium Heat: .8450(-2½) – .9600(-2) Mostly: .8800(-2)–.9200(-1)

High Heat: .9900(NC) - $1.0900(-1)

Nonfat Dry Milk —Western: Low/Medium Heat: .8100 (-4) – .9500(-2) Mostly: .8500(-3) –.9300(-3) High Heat: .9800(NC) - $1.0700(-2)

California Weighted Average NFDM: Price Total Sales June 23 $0.9024 7,660,873 June 16 $0.8973 6,496,276 Whey Protein Concentrate—Central and West: Edible 34% Protein: .7400 (-1) – 1.2350 (NC) Mostly: .8000 (NC) – .9800(-1½)

Whole Milk—National: 1.3000 (NC) – 1.5500 (NC) Visit www.cheesereporter.com for dairy and historical cheese, butter, and whey prices

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Restaurant Performance Index Rose 0.6% In May; Same-Store Sales Were Mixed, While Customer Traffic ImprovedWashington—The National Res-taurant Association’s Restaurant Performance Index (RPI) stood at 100.9 in May, up 0.6 percent from April, the association reported this week.

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

The RPI consists of two compo-nents: the Current Situation Index and the Expectations Index.

The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), stood at 100.2 in May, up 1 percent from April.

Restaurant operators continued to report mixed same-store sales in May, though results were some-what stronger than April.

Some 36 percent of operators reported a same-store sales increase between May 2016 and May 2017, up from 34 percent of operators

who reported higher same-store sales in April.

And 41 percent of operators said their sales declined in May, down from 47 percent who reported sim-ilarly in April.

Restaurant operators also reported somewhat improved cus-tomer traffic results in May. Some 33 percent of operators reported an increase in customer traffic between May 2016 and May 2017, up from 26 percent of operators who reported higher traffic in April. And 47 percent of operators reported a drop in customer traffic in May, down from 52 percent in April.

The Expectations Index, which measures restaurant operators’ six-month outlook for four indus-try indicators (same-store sales, employees, capital expenditures and business conditions), stood at 101.7 in May, up 0.2 percent from April.

Although restaurant operators are still generally positive about the business environment in the months ahead, their optimism waned somewhat in recent months.

Some 33 percent of opera-tors expect to have higher sales in six months (compared to the same period in the previous year), down from 37 percent last month and the lowest level since December.

Similarly, restaurant opera-tors’ outlook for the economy is less optimistic than it was a few months ago.