W o r l d ' s DairyI t h W S l y CHEESE REPORTER Issues/2016/October 28, 2016.pdf · 2016-10-28 · FDA Outlines Sodium Reduction Targets To ACS Members; Faces Industry Opposition

FDA Outlines Sodium Reduction Targets To ACS Members; Faces Industry Opposition

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CHEESE REPORTER

Single Compliance Date For 2018 Food Labeling Changes Sought

Vol. 141, No. 19 • Friday, October 28, 2016 • Madison, Wisconsin

date for the mandatory revisions to the Nutrition Facts label “and yet they still do not have the guid-ance documents that are essential to making these mandatory label changes, particularly the manda-tory changes to the novel declara-tions of added sugars and dietary fiber,” the letter stated.

Also, Congress has mandated that USDA issue the final GMO disclosure rule by July 29, 2018, three days after FDA’s Nutrition Facts compliance date, the letter pointed out.

“This means that only days after all food labels are required to be in compliance with NFL labels, industry must again begin to re-design labels and related materials and re-label their products,” the letter added.

To give context to the mag-nitude of what these mandates require, approximately 400,000 new products have been intro-duced since the Nutrition Label-ing and Education Act (NLEA) changes were made over 20 years ago, the letter said.

• See Food Labeling, p. 12

2.5

3

3.5

4

1995

2000

2005

2010

2015

Column2

Cold Pack, Cheese Foods ConsumptionPer Capita consumption Since 1995

Food And Beverage Groups Note Separate Compliance Dates For Nutrition Facts Labels, Bioengineered LabelsWashington—More than 30 dairy, food and beverage industry orga-nizations last Friday asked four government agencies for a har-monized compliance date for two mandatory federal food label revi-sions: the Food and Drug Admin-istration’s (FDA) rule revising the Nutrition Facts Label (NFL) and the US Department of Agricul-ture’s (USDA) disclosure standard for bioengineered foods (GMOs).

The request was made in let-ters to Sylvia Burwell, secretary of the US Department of Health and Human Services (FDA’s parent agency); Secretary of Agriculture Tom Vilsack; Shaun Donovan, director of the White House Office of Management and Budget (OMB); and Maria Contreras-Sweet, administrator of the Small Business Administration (SBA).

Making the request on behalf of the Food and Beverage Issue

Alliance were, among other orga-nizations, the International Dairy Foods Association, Grocery Man-ufacturers Association, American Frozen Food Institute, American Beverage Association, Food Mar-keting Institute, National Grocers Association, National Restaurant Association, SNAC International, The Association for Dressings and Sauces, the Flavor and Extract Manufacturers Association, and the International Foodservice Dis-tributors Association.

“These two mandatory label revisions will require new labels for hundreds of thousands of food products,” the associations noted in their letter to the government officials. “The food industry is fully committed to making all the man-dated changes, but we are request-ing an implementation process that does not require multiple label changes and is cognizant of the time, complexity, and cost involved in making such changes.”

Currently, members of the trade associations that signed the letter, except for small businesses, have less than two years to comply with FDA’s July 26, 2018, compliance

New Zealand Changing Dairy Regulations; Fonterra Won’t Have To Sell Regulated Milk To Export-Focused FirmsWellington, New Zealand—The New Zealand govenrment is mak-ing changes to the Dairy Industry Restructuring Act 2001 (DIRA) to support the efficiency and con-testability of New Zealand’s dairy industry, Nathan Guy, primary industries minister, announced last Friday.

The DIRA was passed in 2001 and regulates the activities of Fon-terra to ensure that New Zealand dairy markets are contestable and operate efficiently.

DIRA authorized the amalga-mation of New Zealand’s two larg-est dairy cooperatives at the time — New Zealand Dairy Group and

• See NZ’s Dairy Regs, p. 14

Madison—Representatives from the US Food and Drug Adminis-tration (FDA) recently outlined its draft guidance for voluntary sodium reduction in various cheese categories in a webinar hosted by the American Cheese Society (ACS).

FDA’s voluntary sodium ini-tiative covers 90 percent of the total food category. Last week, the International Dairy Foods Association (IDFA) and the National Milk Producers Fed-eration (NMPF) urged FDA to remove both cheese and butter from the agency’s sodium reduc-tion strategy (for more details, please see “IDFA, NMPF Want FDA To Remove Cheese From Salt Reduction Push,” on our front page last week by scanning the QR Code on page 2 of this issue).

On June 1, FDA issued draft

guidance for voluntary sodium reduction targets for the food industry.

“We’re taking a gradual approach to reducing current sodium consumption, which is about 3,400 milligrams per day,” said Kasey Heinz, interdisci-plinary scientist, Office of Food Additive Safety, Center for Food Safety and Applied Nutrition (CFSAN), FDA.

“We’re doing so by setting both short- and long-term tar-gets,” Heinz said.

The short-term, two-year tar-get decreases sodium intake to about 3,000 milligrams per day. The longer-term, 10-year target seeks to reduce sodium intake to 2,300 milligrams per day, taking into consideration the technical constraints of sodium reduction

• See Reducing Sodium, p. 7

Milk Production From Most Major Exporting Regions Is Softening, Fonterra Says; Milk Price Hiked In AustraliaWellington, New Zealand—Milk production from major dairy exporting regions, including New Zealand, Australia and the Euro-pean Union (EU), “continues to soften,” New Zealand dairy coop-erative Fonterra noted in its Octo-ber “Global Dairy Update.”

In September, Fonterra’s New Zealand milk collection declined 1.9 percent from September 2015, and Fonterra Australia’s milk col-lection declined by 8.6 percent, the update noted.

Since then, the continuing impact of materially wetter than normal spring weather in most parts of New Zealand has seen further reductions in Fonterra’s milk volumes across New Zealand. Daily milk volumes across the central and upper North Island were “down significantly” in the early part of October, and this has continued, particularly in the key dairying region of Waikato, where daily milk volumes are now down around 14 percent compared to a year ago, the update said.

New Zealand’s milk supply gen-erally peaks around mid-October and the recent challenging weather conditions “will have a significant impact on the peak milk volumes, and future production for this season,” the update continued. For the 12 months to September, milk production is down 1 percent compared to the same period a year earlier.

• See Production Down, p. 5

CHEESE REPORTERPage 2 October 28, 2016

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Cheddar cheese continues to account for either a stable or slowly declining percentage of total US cheese produc-tion, but it remains the only cheese product used in the Class III pricing formula.

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

Time For Another Round Of Federal Order Reform

D I C K G R O V E S

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

EDITORIAL COMMENT

By the time the US Department of Agriculture completes the ongoing California federal order proceed-ing, it will have been more than 20 years since the last round of major federal order reform got underway. Some current trends indicate that the time is right for another round of federal order reform in the near future.

It’s been almost a year since the California federal order hearing ended after some 40 days of tes-timony, and roughly five months since the final reply briefs were submitted to USDA. One of these days, USDA will release a recom-mended decision on a California order, followed by a comment period, then a final decision and finally a producer referendum.

Also still pending is a peti-tion, from the Organic Trade Association, asking USDA to hold a hearing on a proposal that would provide a credit to organic fluid milk handlers against their monthly federal order pool obliga-tions, dependent upon the price paid to farmers for organic milk.

The OTA submitted that peti-tion more than a year ago, and almost four months ago requested some additional data and infor-mation from USDA. The agency completed that request by the end of September, when it also told the OTA that it was continuing to review the proposal.

Assuming both of these proceed-ings are concluded by the end of 2017, it will have been more than two decades since USDA under-took the previous federal order reform process. It may be recalled that the previous order reform pro-cess was mandated under the 1996 farm bill, basically took place from 1997 through 1999, and became effective on January 1, 2000.

Our guess is that any attempt at further major order reforms would take at least a couple of years, meaning it would be at least 2020, and probably later, when those reforms would be implemented.

So why is it time for another round of federal order reforms? In

addition to the aforementioned fact that the previous round of order reform got underway more than 20 years ago, there are reasons for further reforms in both Class I and Class III price formulas, just for starters.

As far as Class I pricing is con-cerned, as reported on our front page two weeks ago, last year marked the third straight year in which less than one-third of the milk pooled under federal orders was used in Class I. More specifi-cally, Class I utilization in 2015 was 32.7 percent, up from 32.0 percent in 2014 and 32.4 percent in 2013.

To put that in some historical perspective, back in the 1997-99 period, when federal order reforms were being contemplated, Class I utilization ranged from 42.7 per-cent in 1997 to 45.3 percent in 1998.

Last year, California’s Class 1 utilization was just 13 percent, so if California ends up being the 11th federal order, Class I utilization could drop below 25 percent.

All of this raises the question of whether the dairy industry should continue applying a premium to a category that is of decreas-ing importance to the industry as a whole. And is that premium itself actually contributing to the decline in Class I sales?

Then there are at least a couple of ongoing issues related to Class III pricing. First, Cheddar cheese continues to account for either a stable or slowly declining percent-age of total US cheese production, but it remains the only cheese product used in the Class III pric-ing formula.

More specifically, in 2015, Cheddar cheese accounted for 28.7 percent of US cheese production, down from 34.1 percent back in 2000, when federal order reforms became effective. Meanwhile, Mozzarella last year accounted for 33.8 percent of US cheese produc-tion, up from 31 percent in 2000.

For what it’s worth, Cheddar production through the first eight

months of this year was down 0.8 percent from a year earlier, while Mozzarella output was up 3.5 per-cent. So while Cheddar continues to account for less and less total cheese production, it continues to account for 100 percent of the cheese price in the Class III for-mula.

Then there’s dry whey, the price of which was added to the federal order Class III formula in 2000 (it was added to California’s Class 4b formula in 2003). Dry whey production has fallen from almost 1.2 billion pounds back in 2000 to 975 million pounds last year (the fourth straight year in which dry whey output was under a billion pounds), while the num-ber of plants producing dry whey (human) has declined from 46 back in 2000 to 29 in 2015.

In short, Cheddar cheese and dry whey are relatively “thin” mar-kets, and they look to get even “thinner” in the years ahead.

These aren’t the only contro-versial (or at least potentially con-troversial) aspects of the Class III price formula. It may be recalled that the dairy industry spent sev-eral years — starting with an Agri-Mark request in September of 2005 — arguing over appropriate levels for make allowances in both Class III and Class IV pricing formulas.

Obviously we’ll never find a perfect level for make allowances — California’s annual “Manu-facturing Cost Exhibit” has, for example, found that Cheddar man-ufacturing costs have increased for four consecutive years — but more broadly, there has been at least some talk, for close to a decade or maybe longer, that perhaps product price formulas should be scrapped and replaced with some sort of formula using competitive pay prices.

So here’s a good starting point for the dairy title in the 2018 farm bill: require another round of fed-eral order reforms, with an effec-tive date of January 1, 2021. By then, order reforms will be long overdue (since they already are).

CHEESE REPORTEROctober 28, 2016 Page 3

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New Draft Guidance On Describing A Food Hazard That Needs Control Issued By FDAWashington—The US Food and Drug Administration (FDA) today announced the availability of draft guidance on describing a hazard that needs control in documents accompanying the food.

The draft guidance explains FDA’s current thinking on dis-closure statements made by an entity, in documentts accompany-ing food, that certain hazards have not been controlled by that entity as required by certain provisions in four foundational rules under the Food Safety Modernization Act (FSMA), including the pre-ventive controls rules for human food and animal food as well as the Foreign Supplier Verification Program (FSVP) and the produce safety rule.

This guidance is intended for any entity that is subject to certain provisions (in 21 CFR part 117 for the preventive controls for human food rule, part 507 for the preven-tive controls in animal food final rule, the produce safety regula-tion, or the FSVP regulation) that require a disclosure statement, in documents accompanying food, that certain hazards have not been controlled by that entity.

Subpart C of part 117 includes several provisions (referred to col-lectively as “customer provisions”) that apply when a manufacturer/processor of human food identifies a hazard requiring a preventive control (“identified hazard”), does not control the identified hazard, and relies on an entity in its distri-bution chain to address the hazard.

A manufacturer/processor that complies with the customer provi-sions is not required to implement a preventive control for the iden-tified hazard. (In these provisions, “customer” means a commercial customer, not a consumer.)

As with part 117, subpart C of part 507 includes “customer pro-visions” that apply when a man-ufacturer/processor of food for animals identifies a hazard requir-ing a preventive control (“identi-fied hazard”), does not control the identified hazard, and relies on an entity in its distribution chain to address the hazard. A manu-facturer/processor that complies with the customer provisions is not required to implement a pre-ventive control for the identified hazard.

The FSVP regulation includes “customer provisions” that apply when an importer imports a food that cannot be consumed without the hazards being controlled or for which the hazards are controlled after importation.

One aspect of these provisions is a requirement for the importer to disclose to customers that the food is “not processed to control [identified hazard]”.

FDA believes that, in practice, the part 117 disclosure statement will be required mostly for biologi-cal hazards, because the part 117 disclosure statement only applies when a manufacturing/ process-ing facility has identified a hazard requiring a preventive control, but has not applied that preventive control.

In the case of most chemical and physical hazards, a chemical or physical hazard that a manufac-turing/processing facility identifies as requiring a preventive control would most likely be controlled by the first manufacturing/processing facility in the supply/distribution chain.

For biological hazards, FDA will consider a manufacturing/pro-cessing facility that describes the “identified hazard” using a gen-

eral term (e.g., “microbial patho-gens,” “microorganisms of public health significance”) rather than a specific biological hazard (e.g., Salmonella or Listeria monocyto-genes) to be in compliance with the requirements for the part 117 disclosure statement.

Such a statement adequately communicates the key safety infor-mation.

Regardless of whether the establishment that receives food accompanied by such a disclosure statement is subject to the CGMP requirements, the human food pre-ventive controls requirements, or both the CGMP and human food preventive controls requirements in part 117, that establishment is responsible for taking appropri-ate steps to ensure that biological hazards applicable to that food are

controlled before the food reaches the consumer, FDA said.

For chemical and physical haz-ards, a manufacturing/processing facility that chooses to not control chemical and physical hazards and to rely on its customers to do so, would be subject to the require-ments of the part 117 disclosure statement.

FDA expects such a facility to describe the identified chemical or physical hazard using a specific term (e.g., “mycotoxins,” “afla-toxin,” “stones”) that adequately communicates the key safety infor-mation regarding the chemical or physical hazard that needs to be controlled. Referring to physical or chemical hazards using a general term only does not provide a cus-tomer with sufficient information to address the hazard.


from our archives

50 YEARS AGOOct. 28, 1966: Washington—The US Supreme Court has refused to review a case attacking the new standards for Mozzarella cheese, leaving FDA free to com-plete action on its standards of identity. Proposed FDA standards would cover Mozzarella and low-moisture Mozzarella.

Madison—Home makers’ food price rebellions continue to spread through the nation this week. Last summer’s sharp rise in retail bread and milk prices was caused by farm-ers getting paid more, plus proces-sors and retailers getting wider profit margins, the FTC reported this week. In doing so, FTC blamed all three distribution levels for the housewife having to pay more.

25 YEARS AGOOct. 25, 1991: Washington—The principal beneficiaries of animal growth hormones could be consumers, through lower prices for milk and meat. And while there is much concern about the effects of growth hor-mone adoption on small farms, there is no clear evidence that growth hormone adoption would favor large farms over small farms, according to a new report from USDA’s Economic Research Service.

Washington—The FTC ought to promptly propose guidelines on environmental claims for public comment, FTC chairman Janet Steiger said this week. It is her belief that FTC “has an important role to play in pro-viding guidance to companies that wish to make claims about the environmental attributes of their products” and that FTC should “try to rise to the green claims challenge.”

10 YEARS AGOOct. 27, 2006: Washington.—Although the generic fluid milk marketing campaigns funded by producers and processors have “served to stem declines in milk consumption in the face of heightened competition,” milk “remains at a disadvantage” against its competitive set, the Beverage Marketing Corpora-tion announced this week.

Sonoma, CA—After 27 years of producing some of the country’s best-known goat cheeses, Laura Chenel has sold her business to French artisan cheese corporation The Rians Group.

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

Sane, Safe & EffectiveFood Policy

Dan StronginASQ CMQ/OEUncorporate Consultant

Dairy Situation & OutlookBy Dr. Bob Cropp


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On the counter in front of you are two kinds of carrots, one washed and packed neatly in a clear plastic package, the other still covered in dirt. Which would you choose to buy?

To my surprise, I learned from a microbiologist many years ago that the best method to assure that vegetables are safe in the markets most flavor is to get a shovel to dig them up, put them in a pot, and deliver them as is. Take a car-rot from the ground, and clean it, or worse, sanitize it before you dis-play on the shelves, you eliminate a whole community of protective microbes.

So it comes as no surprise to me that a few years ago FAO, the United Nations Food and Agricul-ture Organization, became preoc-cupied with dependence of global agriculture on large producers. Wanting to strengthen the food chain through supporting small family farms, they began to look beyond just food security to food safety, as many of the current requirements worldwide place a heavy financial burden on small producers.

What they found was food safety laws that, where they existed, were not in tune with modern science. So in 2000 they joined forces with the World Health Organization and brought world-class experts from around the world to develop a more modern and scientific sys-

tem to assess germ risk in food. In 2009, they published guidelines (Codex 1999) which are bring-ing fundamental changes to how governments approach food safety, especially in the United States.

there are concerns that new requirements being

considered will be slanted towards large producers

and create economic hardship for the small

ones.

Last month I wrote about some of those changes. I wanted to share what is driving them. For many decades some scientists and many of us in the food industry have known that there are some things in current food safety law that are suspect.

And there’ve been some spec-tacular failures. Everyone is con-cerned, and we have seen the rise of the Global Food Safety Initia-tive (GFSI).

For many of those, like me, com-ing out of a three-decade effort to bring product diversity back into the cheese market to help stem the rapid loss of family farms in the US, there are concerns that new requirements being considered will be slanted towards large producers

and create economic hardship for the small ones. What’s interesting is that FAO seems to agree with us, based on a number of reports, white papers and guidelines they have produced over the last few years.

The most exciting of all for the revolutionary impact it seems to be having on food safety policy. In the 2009 guidelines are some pretty amazing and encouraging things. The debate on food safety policy is moving in the direction of: farm to table solutions quantitative risk analysis with risks prioritized by com-

paring the calculations to epidemi-ological data, in other words, what happens, with the focus on prevention

through better process, not polic-ing, while ensuring that any and

all requirements have a basis in sci-ence and taking into account the

impact those procedures may have on small producers, finally, recognizing that the

control and prevention of risks in the food chain is a responsibility widely shared and requires posi-tive interaction between all of the interested parties

For someone who has dedicated their professional life for the last decade and a half to trying to get value-added producers to stop chas-ing results and learn how to con-tinually improve their processes to improve their performance in the quality of the product and service they provide, this is like manna from heaven; it’s about time.

But will the entrenched authori-ties and special interests allow the food world to evolve from police work to collaboration in continual process improvement? It looks like they may!

• See Strongin, p. 12



Production Down(Continued from p. 1)

Fonterra’s milk collection across New Zealand for the four months to the end of September reached 297 million kilograms of milk sol-ids, 3 percent behind the same period last year.

With September milk collection down almost 2 percent, Fonterra’s forecast offer volumes on Global Dairy Trade (GDT) over the next 12 months for New Zealand prod-ucts have been reduced by 11,199 metric tons.

Including this latest decrease, Fonterra has reduced GDT offer volumes since August 1, 2016, by 55,481 metric tons.

Australia’s milk production in August, the second month in the 2016/17 production season, declined 9 percent compared to the same month in 2015. Austra-lia’s milk production has been neg-atively impacted by the reduction in Australian milk prices, along with unfavorable pasture condi-tions, the update said.

Production for the 12 months to August was down 4 percent com-pared to a year earlier.

On Thursday, Fonterra Aus-tralia advised suppliers that it has increased its average farmgate milk price to $5.10 per kilogram of milk solids, and increased its forecast closing price for the sea-son to $5.20 per kilogram of milk solids.

Rene Dedoncker, Fonterra Australia managing direc-tor, said that this revised price reflected strengthening global dairy prices.

“Although the global market remains volatile, since the begin-ning of the season, global milk supply has continued to decline significantly while demand has remained relatively stable,” Dedoncker said.

EU milk production declined for the third straight month with August down 1 percent compared with August 2015.

Production for the 12 months to August was up 3 percent com-pared to the same period a year earlier.

Total New Zealand dairy exports in August declined 5 per-cent, or 8,000 metric tons, com-pared to August 2015, the update said.

Declines were seen across anhy-drous milkfat, down 19 percent, whole milk powder down 16 per-cent and butter down 9 percent, offsetting gains in cheese, up 3 per-cent, fluid and fresh dairy, up 34 percent, and skim milk powder up 5 percent.

New Zealand’s exports for the 12 months to August were up 6 percent, compared to the previous year, largely due to fluid and fresh dairy, up 41 percent, anhydrous milkfat up 16 percent and cheese

up 13 percent, offsetting whole milk powder, which was down 3 percent.

Australia’s dairy exports in July increased 17 percent, or 8,000 met-ric tons, compared to July 2015, according to Fonterra’s update.

Exports for the 12 months to July were up 6 percent compared to the same period a year earlier. This increase was largely due to fluid and fresh dairy up 20 percent, cheese up 8 percent, together with solid growth in infant formula, up 236 percent.

EU dairy exports increased 4 percent, or 17,000 metric tons, compared to June 2015. Exports were up 11 percent, or 488,000 metric tons, for the 12 months to June compared to the same period a year earlier.

Exports have been particularly strong for fluid and fresh dairy, up

23 percent, cheese up 13 percent and whey powder up 8 percent, offsetting softer skim milk powder exports, which declined 7 percent.

On the demand side, China’s dairy imports increased 25 percent, or 39,000 metric tons, in August compared to August 2015, the update reported.

Significant increases in fluid and fresh dairy, infant formula and whey powder, up a combined 33 percent, were partially offset by skim milk powder, down 27 per-cent.

China’s dairy imports for the 12 months to August were up 28 percent, or 498,000 metric tons compared to the same period a year earlier.

Asia’s (excluding China) dairy import volumes increased 11 per-cent, or 37,000 metric tons, in June compared to June 2015, with

increases across all the major dairy categories except for skim milk powder, which declined 6 percent. Asia’s imports for the 12 months to June were up 3 percent, or 103,000 metric tons, compared to a year earlier.

Middle East and Africa dairy imports declined 13 percent, or 43,000 tons, in June compared to June 2015, with decreases across all major import categories, includ-ing skim milk powder down 35 percent, cheese down 16 percent, fluid and fresh dairy down 14 per-cent and whole milk powder down 10 percent.

For the 12 months to June, imports were down 7 percent, or 243,000 tons, compared to a year earlier. Latin America’s dairy import volumes increased 15 per-cent, or 21,000 metric tons, in June, compared to June 2015.


USITC Preparing Update Report On Economic Impacts Of Significant US Import RestraintsPrevious Reports Found That Liberalization Of US Cheese, Other Dairy Import Restraints Would Benefit ConsumersWashington—The US Inter-national Trade Commission (USITC) recently announced its schedule for preparing the ninth update report of investigation No. 332-325, The Economic Effects of Significant US Import Restraints.

That includes the scheduling of a public hearing in connection with this update report for Febru-ary 9, 2017, at the USITC Build-ing in Washington, DC. Requests to appear at the hearing should be filed no later than 5:15 p.m. on January 26, 2017.

More information is available on the USITC website, at www.usitc.gov.

The USITC instituted this investigation following receipt of an initial request from the United States Trade Representa-tive (USTR) in 1992. The request asked that the Commission assess the quantitative economic effects of significant US import restraints on the US economy and prepare

periodic update reports after the initial report.

In this ninth update, the USITC will provide, in addition to the quantitative effects analy-sis similar to that included in prior reports, an assessment of how sig-nificant US import restraints affect households with different incomes and a special chapter that presents an overview of the effects of tariffs and customs and border procedures on global supply chains.

Cheese Import RestraintsPrevious updates have examined the economic impacts of US dairy import restraints. The eighth update, released in December 2013, noted that the US cheese sector is “subject to relatively high average tariffs,” as well as the greatest num-ber of quantitative restraints of any sector included in the report, with nine separate cheese tariff-rate quotas (TRQs).

Some cheeses imported into the US are not subject to TRQs, including cheese made from sheep and goat milk (such as Roquefort), and they accounted for about 36 percent of the total value of US cheese imports in 2012, the 2013 update noted. Cheese imports not


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subject to TRQs “typically face low or moderate tariffs,” most less than 10 percent ad valorem.

Cheese products that are subject to TRQs encompass about 131 of the dairy sector’s 157 10-digit tariff classifications in the Harmonized Tariff Schedule of the United States (HTS), the 2013 update explained. All nine TRQs have country-specific in-quota volume allocations. In-quota tariff rates on these products are generally below 10 percent ad valorem, while over-quota ad valorem equivalent (AVE) rates averaged about 27 percent in 2012.

Liberalization of US import restraints on cheese is expected to increase US welfare by $297 mil-lion over the six-year period from 2012 through 2017, or an average of about $50 million per year, the 2013 update said.

Liberalization is modeled by removing all TRQs and duties on cheese. Ending US import restraints on cheese is expected to lower the landed, duty-paid price of cheese, which would lead to a rise in imports of over 40 percent and to dips in domestic shipments of cheese (1.5 percent) and US employment in the cheese industry (1.7 percent).

Cheaper imported cheese would induce a decline in US domestic prices relative to world prices, lead-ing to a small increase in exports of 0.4 percent.

While the percentage increase in imports is “quite high,” the effect on domestic cheese pro-ducers would be “rather modest” because of the low level of import penetration in the US cheese mar-ket, the 2013 update stated.

Liberalization Of Dairy ImportsThe overall US dairy sector is sub-ject to “relatively high average tariffs” and the greatest number of quantitative restraints of any sec-tor in the 2011 update, with 27 separate dairy TRQs. Moreover, import restraints affect a wide variety of dairy products, includ-ing fluid milk and cream, butter, cheese, powdered milk products, ice cream, infant formula and dairy-based animal feeds.

Dairy products imported into the US that were not subject to

TRQs, including certain varieties of cheese and certain inputs to pro-cessed foods, accounted for roughly one-half of the total value of US dairy imports in 2009 and 2010, the 2011 update noted. Dairy imports not subject to TRQs typi-cally face low or moderate tariffs.

Casein, caseinates, milk pro-tein concentrates, and milk albu-min were imported largely free of duty and accounted for more than one-third (34 percent) of all dairy imports in 2010, the 2011 update said.

Liberalization of US import restraints on dairy products is anticipated to increase US welfare by $223 million in 2015, the 2011 update said.

Liberalization is modeled by removing all TRQs and duties on cheese, butter, ice cream, fluid milk, and dry, condensed and evaporated dairy products.

Among dairy products, the greatest effect is observed in con-densed and evaporated dairy prod-ucts, the sector with the greatest overall trade restraints.

The USITC received input for its 2011 update from two dairy industry entities. National Milk Producers Federation (NMPF) said that existing US dairy import restraints are important, consid-ering the widespread harm that would be imposed on the US dairy industry in their absence.

The National Milk Producers Federation said that it is particu-larly concerned about the impact that policy changes might have on US dairy farmers, the dairy supply chain, and supporting businesses throughout rural America that rely on dairy production.

Fonterra (USA), Inc., a wholly owned US subsidiary of New Zealand’s Fonterra Cooperative Group, characterized US dairy product TRQs, with the exception of food preparations and possibly American-type cheese, as “sig-nificantly underfilled through the third quarter of 2010,” and sug-gested that this reflects a systemic problem with the administration of the US dairy TRQs that has resulted in persistent underfilling of quotas, given the substantial US demand for imported dairy prod-ucts.

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Reducing Sodium(Continued from p. 1)

and reformulation.“Americans are getting too

much sodium in their diet, and science tells us that this is a prob-lem,” Heinz said. “We also know it’s difficult in today’s marketplace for consumers not to consume too much sodium.”

The average sodium intake today is over 3,400 milligrams per day – almost 50 percent more than the 2,300 milligram limit recom-mended by federal guidelines, she said.

“That’s why these voluntary sodium reduction targets are so important,” Heinz said. “They will provide consumers with opportunity to bring their sodium intake down to the recommended amount.”

Sodium reduction is important because it could prevent hundreds of thousands of premature deaths and illnesses over a decade, she said.

“Consumers are still not able to reduce their intake by using nutri-tion labels. We’ve tried educat-ing them on labeling for 20 years and it really hasn’t been enough,” Heinz said. “Even those of us who know a lot about nutrition find it challenging.”

FDA realizes that salt and other ingredients play certain technical roles in food flavors, food preser-

vation, and color/texture develop-ment, and also understands that each food category is different, Heinz said.

Salt is integral in cheesemaking, particularly in the manufacturing of cheese, as well as the function of the finished cheese, she said.

“We’re welcoming input on cat-egory-specific data to help refine our targets related to these things,” Heinz said.

FDA has evaluated a lot of data on different foods in developing the draft sodium reduction targets, surveying available food technol-ogy and literature on the role of sodium and sodium reduction.

Because FDA needed specific information on products in each food category, the agency also per-formed market surveys on which products were currently on the market and which products had the lowest sodium, Heinz said.

“We did not include products defined as low or reduced sodium in our baseline calculations,” she said. “However, we do plan to include these moving forward.”

FDA also consulted with experts and reviewed other sodium reduc-tion initiatives.

First, FDA determined 150 sep-arate food categories, allowing the agency to be more precise. Second, FDA determined baseline sodium concentration based on 2010 data, and third, set quantitative goals for two years and 10 years out.

“The US food supply is enor-mous and diverse, so we started by imposing some structure. In cat-egorizing food, we used different classification systems and made sure to capture USDA food codes,” Heinz said.

The intent was to capture the entire food supply both at retail and foodservice, she said.

“For the cheese category, we also referenced the FDA food product code cheese categories, but some of those were categorized based on milk types and too broad for our purposes,” Heinz said.

Ultimately, we used the FDA standards of identity for cheeses for our targets based on the input we have received, she said.

“We’re targeting about 90 per-cent of foods in the US food sup-ply. Foods that did not receive targets do not contain meaningful amounts of added sodium because they either had no sodium, had only intrinsic sodium, or were con-sumed rarely,” Heinz said.

Next, FDA needed to describe how much sodium was found in the foods of each food category, so it determined baseline sodium concentrations in milligrams per 100 grams.

“We felt this was the best mea-surement because it was a standard-ized way to present information, and that was also the appropriate approach from the comments we received,” she said.

The sodium baselines became a point at which we could define our quantitative goals, Heinz said. To establish the baselines, we used sodium content data from 2010 food labels and restaurant menus from 2010-2011.

In establishing these goals, we explored various options for expressing the goals, including applying fixed percentages, calcu-lating target concentrations, and we selected a hybrid goal frame-work, Heinz said.

Food categories would be assigned both a weighted mean concentration target, as well as an upper bound concentration.

Restaurants are important because almost 50 percent of every food dollar goes to food consumed outside the home, she continued.

“Although we’re looking at the category as a whole, companies also use this methodology to assess their own portfolio of products,” Heinz said.

We encourage comments in regard to what amendments to FDA standards of identity regu-lations are needed to facilitate sodium reduction, she continued.

FDA’s deadline for submit-ting comments on the long-term sodium reduction goals (issues 5 to 8 in the notice FDA released in June) is December 2. Comments may be submitted electronically, at www.regulations.gov. The docket number is FDA-2014-D-0055.


Lichfield, New Zealand—The first liters of milk began flowing through Fonterra’s newest high-efficiency milk powder plant here, as what is described as the world’s joint-largest dryer comes online.

GEA, one of the largest suppli-ers of processing technology for the global dairy and food industry, installed a high-performance spray dryer as the centerpiece of the new Fonterra milk powder plant in Lichfield.

For Fonterra, GEA developed what it describes as the best per-forming and most efficient spray dryer currently available on the market. With the capacity of 30 tons of milk powder per hour, it can process almost 4.4 million liters of milk per day.

Large-scale dryers such as this play a key role in driving value for Fonterra, said Robert Spurway, the cooperative’s chief operating offi-cer.

“Premium milk powder is a valuable product for Fonterra in its own right, but people often underestimate the strategic impor-tance of powder production to the cooperative’s overall asset mix,” Spurway said. “The capacity these assets give us takes the pressure off during the peak of the season, meaning we have more freedom to prioritize milk into higher return-ing products.”

Fonterra’s goal “is to strike a bal-ance in our assets that enables us to switch between products quickly to meet demand changes in global markets, push the pace on produc-tion when milk volumes dictate, and ultimately deliver the best product mix to generate returns,” Spurway added.

GEA was responsible for the complete turnkey milk powder plant and provided all of the pro-cessing technology, from accep-tance of the tanker to evaporation, drying and powder handling to packaging.

The spray dryer is the second of its kind, built by GEA. Its sister plant Darfield II, also operated by Fonterra in New Zealand, has been producing powdered milk since December 2013.

For Lichfield, the GEA experts developed several innovations, which GEA said simplify the pro-cesses on site and reduce the total cost of ownership. In particular, energy efficiency was a key focus for the project team.

For example, the plant requires very little process water as the evaporator condensate is filtered through the membrane of a high-pressure reverse osmosis system and, because of the GEA technol-ogy, this water can be re-used dur-ing processing. As a result, GEA said, Fonterra is required to main-tain much less wastewater treat-ment capacity at the site.

By focusing on overall equip-ment efficiency, energy consump-tion and waste minimization, the completed milk processing plant is one of the most efficient in the industry, GEA added.

“Highly productive and effi-cient spray dryers, such as the one in Lichfield, play a decisive role in the industry,” said Clint Brown, responsible for the GEA operation in New Zealand. “The demand for milk in the expanding markets, such as China, can only be met by easily transportable and stable milk powder.”

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France’s Eurial Plans To Double Capacity Of Its Herbignac Cheese PlantSaint-Lo, France—Eurial, the dairy division of the French agricul-tural and food processing coopera-tive group Agrial, has announced plans to double the capacity of its Herbignac cheese factory.

At a time when the factory is at saturation point and when world demand, in particular from the Far East, is continuing to grow, Agrial said it is vital to extend the Moz-zarella plant’s capacity.

So Agrial’s board of directors recently approved an investment of 135 million euros to double Her-bignac’s production capacity and to improve the profitability of its co-products.

The plant’s capacity will rise from 40,000 to 80,000 tons of cheese by 2020. Work should start at the end of 2017 and take two years. One of the two drying towers on the site will also be replaced.

Eurial processes the milk of more than 6,450 of Agrial’s mem-bers over a vast territory in France. Eurial collects around 2.8 billion liters of milk, including 220 mil-lion liters of goat’s milk, has a turn-over of 2 billion euros and employs over 4,000 people.

Eurial has 24 processing and logistics sites in France, three man-ufacturing sites in Spain, Belgium

and the US as well as five market-ing subsidiaries in Europe, the US and the Middle East.

According to Agrial’s 2015 annual report, Eurial has six areas of strategic activity spread over two core business.

The retail business for consumer items includes goats’ milk cheese under the Soignon brand, which covers a wide range of products from Protected Designation of Ori-gin (PDO) cheeses to culinary aids or ultra-fresh and the Merci Chef brand for professionals in the food processing business and catering as well as export.

Also included in Eurial’s retail business: butter and cream, car-rying the Grand Fermage brand which includes especially the spe-cialty butter with sea salt crystals and the Charentes-Poitou PDOs, and the Agrilait brand in Brittany; and ultra-fresh dairy products with the Senagral subsidiary in the sec-tors of yogurts, milk-based desserts and other products.

Eurial’s foodservice core busi-ness includes cheese ingredients with the production of the Mae-strella brand, marketed in Europe and globally; UHT milk with the Coralis Dairy, which promotes the Agrilait regional brand in Brittany and Normandy; and dry ingredients with Delicelait, which specializes in food ingredients in powder form, dry ingredients and concentrated butter.


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

This year's OSCA cheese auction raised $14,981.Please join us in thanking the following companies for their generous support:

Troyer’s Trail BolognaDundee, Ohio

$2,978.00

Hummel GroupBerlin, Ohio$1,896.50

Commercial & SavingBank

Sugarcreek, Ohio$550.00

Scott’s AutoSugarcreek, Ohio

$450.00

Walnut Creek CheeseWalnut Creek, Ohio

$2,928.00

McElroy PackagingWooster, Ohio

$1,475.00

Vilutis & Company Frankfort, IL

$500.00

Moore’s Lawn & Garden Millersburg, Ohio

$200.00

Smokey Lane StablesSugarcreek, Ohio

$35.00

Cambridge PackagingCambridge, Ohio

$2,493.50

Superior Tank & TrailerStrasburg, Ohio

$800.00

Gordon Milk TransportSugarcreek, Ohio

$450.00

Pleasant Valley ConcreteSugarcreek, Ohio

$225.00

Thank YouThank You

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

Grand Champion: Guggisberg CheeseAuction Buyer: Walnut Creek Foods

Reserve Champion: Pearl Valley CheeseAuction Buyer: Troyer’s Trail Bologna

Protein Matters When It Comes To Building Muscle Mass; Whey Protein Ranks HighestRosemont, IL—Based on a new proposed method to evaluate pro-tein quality using its indispensable (or essential) amino acid composi-tion and its digestibility, protein sources that provide leucine, such as whey protein, are the strongest determinant of muscle protein syn-thesis and likely muscle growth, according to Dr. Stuart M. Phillips of MacMaster University.

In a recent review published in Nutrition and Metabolism, Phillips reviewed the current science to examine the effects of the qual-ity of supplemental protein on changes in muscle mass, strength and body composition when com-bined with strength training.

Typically, protein quality has been measured using the protein digestibility-corrected amino acid score (PDCAAS), Phillips noted. More recently, a new, ostensibly superior, method for estimating protein quality has been proposed called the digestible indispensable amino acid score (DIAAS).

The main reasons for the deriva-tion of the newer method of scoring protein quality related to concerns around the use of PDCAAS and an increasing recognition that digest-ibility could not be estimated from feces, Phillips explained.

Some of the bases for why DIAAS is suggested to be superior to PDCAAS were reviewed by Phillips. First, dietary amino acids should be treated as individual nutrients and not as protein.

Second, it was acknowledged that any digestibility correc-tion had to recognize the differ-ence between fecal, as opposed to ileal, protein digestibility. This is because there is a rapid and often-times substantial metabolism in terms of proteins, amino acids, and nitrogen in the colon. Thus, ileal rather than fecal digestibility is considered to be more accurate due to colonic protein and nitro-gen metabolism.

Third, there was a recognition that certain amino acids, lysine as an example, can be reduced in terms of their bioavailability due to chemical reactions that can decrease the digestible lysine.

Finally, there was concern raised over truncation of the PDCAAS value, which implied that amino acids available in terms of their content over and above those con-tained in a reference protein, were not useful. The point was made that truncation removes any nutri-tional differences between higher IAA-containing foods even if cer-tain IAA may be limiting in some diets/proteins.

The key amino acid triggering the rise in muscle protein synthe-sis (MPS) is leucine, and, as such, ingested proteins with a high leu-cine content would be advanta-

would have to be consumed.The higher protein/leucine

needed to stimulate MPS in the elderly would be obtained at lower protein doses with higher qual-ity proteins such as whey, which may be advantageous from both an energy intake and potential appe-tite suppression standpoint, Phil-lips stated.

“My assessment of the data on protein supplementation and resistance exercise reveals that the amount of leucine in a protein sup-plement has the greatest impact on muscle protein synthesis,” Phillips said.

The Whey Protein Research Consortium (WPRC) is an inter-national partnership of dairy cooperatives, processors, associa-

tions and multinational companies dedicated to working together to discover and share whey’s unique health benefits through scientific evidence since 2003.

The WPRC serves the dairy industry by expanding global usage of whey protein through the research and amplification of its health benefits. The goal of the integrated research effort is to develop a body of knowledge that establishes measurable whey pro-tein health and wellness benefits, creating a strong foundation for the development of scientific sub-stantiation to support new health, qualified health and structure function claims.

For more information, visit www.wheyconsortium.org.

geous in triggering a rise in MPS, Phillips noted. Thus, protein qual-ity has an impact on changes in MPS and could ultimately affect skeletal muscle mass.

It appears that the elderly have a greater leucine threshold and thus require greater levels of protein/leucine to stimulate MPS both at rest and following resistance exer-cise, Phillips pointed out. Thus, in an effort to produce greater gains in muscle mass in the elderly, both with protein supplementation in the absence of exercise and with performance of resistance training larger doses of protein (leucine)


Wayne Matzke Will Retire From Grande As President & CEOFond du Lac, WI—Wayne Matzke, president and CEO of Grande Cheese Company here, has announced plans to retire in February 2017.

The responsibilities of Matz-ke’s role will be restructured and divided between a CEO and a newly-formed position of chief operating officer.

Todd Koss, Grande’s current chief financial officer, will become the new CEO. Koss has been with Grande for 16 years, having also served as director of strategic plan-ning. Before joining Grande, he held several leadership positions at Procter & Gamble.

Grande’s current group vice president of trademark products Ryan Cropper has been named COO. Cropper has been with Grande for eight years and previ-ously served as vice president of human resources and director of financial analysis and planning.

“I am extremely proud of this company’s growth, development and its many successes, which were all attained while remembering our commitments to associates, trademark excellence, our history and traditions,” Matzke said. We are now poised for the future and it’s the right time to transition to the next generation of company leadership,” he continued.

John Ellenberger of Land O’Lakes Named American Butter Institute PresidentArlington, VA—John Ellen-berger, senior vice president of US dairy foods for Land O’Lakes, Inc., Arden Hills, MN, was recently elected president of the American Butter Institute (ABI) for a two-year term.

Ellenberger succeeds ABI’s outgoing president, Irv Holmes of Challenge Dairy Products, Dub-lin, CA.

I’m looking forward to serving as president during this exciting time for the butter industry, Ellen-berger said.

“Butter’s popularity with today’s consumers continues to grow as they seek good-tasting and versa-tile foods with simple ingredient statements,” he said.

Butter scores high on all those attributes and ABI is well-posi-tioned to keep delivering that message, Ellenberger continued.

Also elected to serve two-year terms are ABI first vice presi-dent Randy Robinson, CEO of High Desert Milk, Burley, ID; and second vice president Craig Alexander, vice president of dairy

PERSONNEL ingredient sales and regulatory affairs for O-AT-KA Milk Prod-ucts Cooperative, Inc., Batavia, NY.

GEORGE HOFF, executive vice president and chief financial offi-cer at Sargento Foods, Inc., will retire at the end of 2016. JEREMY BEHLER has been promoted to fill this role, starting immediately. Hoff joined Sargento as control-ler in 1983, after serving as audit manager at PricewaterhouseCoo-pers. Since then, he has served in various financial roles at Sargento, most recently as chief financial officer and as president of the Consumer Products Division from 1997 to 2000. In his new role, Behler will lead the finance, accounting and IT departments at Sargento. He will be responsible for instituting process improve-ments that will enhance visibility to cost factors, oversee financial analysis, develop strategies, and implement enhanced report-ing procedures and tools. Prior to joining Sargento, he handled mergers and acquisitions at Proc-tor & Gamble.

RACHEL KERR has joined the Wisconsin Milk Marketing Board (WMMB) as public rela-tions manager, where she will support national public relations and social media campaigns for WMMB. Kerr comes to WMMB with nearly 10 years of experi-ence in public relations and social media, most recently serving as senior assistant experimental marketing manager at Kraft Heinz Company. During her seven years at Kraft, Kerr worked on the Oscar Mayer brand, coordinating events and managing multiple social media accounts.

KAI KONECKE has been named chief supply chain officer for Emmi Group, effective April 1, 2017. Konecke currently works as vice president of supply chain at Unilever Germany, Austria and Switzerland. With over 20 years of experience in supply chain man-agement positions, Konecke has also worked for Mars and Amazon. Emmi’s group management posi-tion of chief marketing officer is still vacant.

JOHN GALLOWAY, 94, of The Galloway Company, Neenah, WI, died on October 22, 2016. Gal-loway worked at The Galloway Company for more than 43 years as vice president of sales, presi-dent, and chairman of the board. Galloway was an active member of the Wisconsin Dairy Products Association for many years, and received the WDPA’s highest honor, the Presidents Award, in 2003.

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Irish Co-op LacPatrick Offering Producers An Option Of Fixing Price For Portion Of Their MilkMonaghan, Ireland—LacPat-rick, which was formed last year as a result of the merger of Bal-lyrashane and Town of Monaghan cooperatives, has announced the introduction of its inaugural “LP Fixed Milk Price Scheme.”

The scheme will provide an option for LacPatrick producers, both in Ireland and in Northern Ireland, to “fix” a price for a por-tion of their milk supplied in 2017, with the intention of providing for greater certainty and stability in their dairy enterprises, the com-pany said.

This is the first such scheme offered by LacPatrick, and, as such, is being offered over a rela-tively short time period (calendar year 2017). However, as produc-ers become more familiar, LacPat-rick expects to be offering further such schemes in the years ahead as it continues to try to reduce the impact of ever-increasing market volatility on its supplying mem-bers.

Specifics of the scheme include, among other things:

Subject to sufficient interest from producers, LacPatrick will fix the price of 10 percent of total sup-ply with interested customers. Participation by producers

is voluntary. Interested producers will have the option to fix up to 20 percent of their 2017 supply, depending on demand. Qualifying criteria are having

a milk supply agreement signed and participation in a quality assurance scheme, such as the Red Tractor Scheme.

Fixing milk prices enables pro-ducers to lock in a milk price that leaves a level of profit and reduces exposure to milk price drops that come with dairy market volatil-ity, LacPatrick noted. Severe milk price swings have caused consider-able cash flow and financial plan-ning difficulties for producers over the last two years.

“This is a great initiative and I encourage all suppliers to con-sider participating,” said Gabriel D’Arcy, LacPatrick’s chief execu-tive.

“While the current rally in dairy markets is to be welcomed, there is no guarantee that it will con-tinue into the new year. Oil prices, on the other hand, could make a strong recovery and drive dairy markets even further ahead.


Danish Researchers Trying To Develop Grass That’s Easier For Cows To Digest; Would Reduce Methane EmissionsAarhus, Denmark—In collabora-tion with the Danish seed com-pany DLF Seeds, researchers from Aarhus University are trying to develop new types of grass that are easier for cows to digest.

The researchers are in the pro-cess of developing future sustain-able grass species that are more climate-friendly because they are produced using less fertilizer than other types of grass and take up more nitrogen.

The researchers are also work-ing on making the grass easier to digest for cows in order to increase milk production.

It will be easier for cows to break down the grass, if it is less stiff than other types of grass, the researchers noted.

This means that the cows have more energy and can produce more milk.

In Denmark, it is expected that the new super grass will reduce the annual emission of methane from cattle by an amount equivalent to about 10 percent of the total greenhouse gas emissions from cows in the country.

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Nov. 6-9, 2016 Chicago, IL Come see us at booth 7239

Bowl Ad–Cheese Reporter+IBIE and Pack Expo 2016 Reminder.indd 1 2016-07-14 9:33 PMFor more information, circle #12 on the Reader Response Card on p. 18

One-Quarter Of US Consumers Are Serving Dairy, Meat Alternatives Without Disclosing SwapBoulder, CO—Approximately one-quarter of the 2,000 respon-dents in a nationwide survey have served a dairy or meat alterna-tive to friends and family without disclosing the swap, according to Earth Balance, which produces buttery spreads, nut “butters” and other plant-based products.

Some 43 percent of people being served these alternatives didn’t realize they were being served alternatives, the survey found. Millennials and GenXers were the most perceptive when it came to identifying the substitution.

Whether they were on to the chef or not, the majority liked the alternative foods they were served, Earth Balance said.

Some 74 percent of the sneaky chefs reported that the peole who ate the food alternative enjoyed it.

“We’re seeing more people become open to cooking with dairy and meat alternatives and turning others on to these swaps, because they know how tasty they can be,” said Adriane Pilcher, director of marketing at Earth Balance.

“And the best part is that this trend is not just limited to self-pro-claimed foodies anymore,” Pilcher continued.

WCMA Now Accepting Applications For 2017 Student Scholarships; Deadline Is Feb. 24Madison—The Wisconsin Cheese Makers Association (WCMA) is currently accepting applications for its 2017 student scholarships.

WCMA will award five schol-arships worth a total of $15,000 to students pursuing careers in the dairy industry. Applications are due Feb. 24, 2017.

Next year, two students will be chosen for the WCMA Myron P. “Mike” Dean Cheese Industry Stu-dent Scholarship worth $3,000.

Any employee or child of an employee at a WCMA member manufacturing or processor/mar-keter company may apply.

The WCMA Cheese Industry Supplier Student Scholarships, also worth $3,000 each, will be awarded to three students. Any employee or child of an employee at a WCMA member supplier company may apply.

“Cheese makers know that a well-educated workforce will help our industry grow, and that’s why – time and again – they’ve invested in students with scholar-ship awards,” said WCMA execu-tive director John Umhoefer.

“All told, our association has donated more than $1 million to support students and industry educational programs,” Umhoefer continued.

Preference for scholarship awards will be given to candidates pursuing degrees and careers con-nected to the food and dairy supply

industry. Well-qualified candidates will

be currently attending a college, university or technical school in the US, or registered to attend a qualifying school.

Applicants must supply tran-scripts, a letter of recommenda-tion, and a completed application form.

Successful applicants will be announced in March 2017 with awards made at the Wisconsin Cheese Industry Conference on April 12 at the Alliant Energy Center in Madison.

For more information or to download an application, visit www.wischeesemakers.org.

For questions, contact WCMA’s Rebekah Sweeney at (608) 828-4550 or via email: [email protected].



StronginContinued from p. 4

The new Food Safety Modern-ization Act was written in part to ensure the United States compli-ance with these new international agreements. In implementing the Act, the FDA has begun a review of many of its current policies and procedures to see if they are based on science.

In particular, two longstanding policies that are of particular con-cern for small producers are under scrutiny: as reported in this jour-nal, the use of nonpathogenic bac-teria as indicators of the relative sanitary conditions on the farm, and the 60-day rule for raw milk cheeses.

In September, a group of influ-ential senators and House members sent a note to the FDA congratu-lating them on their decision to suspend the use of counts of non-pathogenic bacteria for artisan cheese makers. In it, they men-tioned that this could be an oppor-tunity to develop an approach to the regulation of raw milk cheese production based on science and that they continued to be preoccu-pied with the lack of evidence that some practices improve the results of public health.

As reported in this journal, the FDA, in September, cut short a two-year research project analyzing samples of raw milk cheeses taken from the shelves in markets around the country because no threat was found.

Also, recent research was done by microbiologists and others to find the scientific basis for the 60-day rule have come up short. In fact, no one seems to be able to nail down the original research. Emperor’s New Clothes syndrome?

In fact, results are all over the place, and the FDA itself is ques-tioning the value of these kinds of arbitrary rules when the solution to safe food lies in safe process. Wow! In my line of work, helping companies optimize their organiza-tion through quality, we teach that you are better off solving the prob-lem upstream than trying to fix it downstream. Seems they agree.

To me and others, including many microbiologists, despite what an excellent tool it is, the way we have used and are using pasteuriza-tion may have become part of the problem. Reliance on inspecting for a problem after the fact and trying to fix it is a disincentive to improving the process. In my next column, I will share a case study which illustrates this, while of course, changing the names to protect the innocent.

Dan Strongin is a former president of the American Cheese Society, chef and business coach for small to medium value added busi-nesses, and the owner of the sites learn.mana-genaturally.com, Dan can be reached via email at [email protected].

Food Labeling(Continued from p. 1)

“Without question, the food and beverage world is immeasurably more complicated and globalized than it was 20 years ago,” the letter said. “To change essentially every single food label in the US requires adequate time, careful planning, significant resources, testing and analyzing products, entering ingre-dient information into databases, new label and packaging designs, new printing plates, and queuing up in line with the printing com-pany.

“The process requires coor-dination between software ven-dors, ingredient suppliers, graphic designers, printing companies, and others on a scale of magnitude that has never been contemplated or done before,” the letter added. The costs incurred may range anywhere from $250 to $6,000 per SKUm, with industry-wide cost in the bil-lions of dollars.

And while the impact is indus-try-wide, small business will be particularly affected, the letter pointed out.

Repeating this scenario back-to-back twice, one time for the Nutrition Facts Label and a second time for bioengineered disclosures, will be “unduly burdensome and enormously wasteful across every impacted sector,” the letter stated.

“Our members do not yet have all the information they need to make the mandatory NFL label changes,” the letter noted. Pre-suming FDA can issue final guid-ance by the end of 2016 on added sugars and dietary fiber, the entire food industry, except for small businesses, will have less than 18 months to change all food labels by July 2018, and “just days later” will be required to begin the pro-cess again, redesigning labels and

relabling products to comply with USDA’s bioengineered food dis-closure requirements.

A harmonized compliance date that aims to introduce consumers to a single label format should try to incorporate, where possible, the numerous other regulatory changes affecting food labels, the letter said, including the pending revi-sions to nutrient content claims and health claims, the voluntary sodium reduction targets, the vend-ing machine labeling rule and rel-evant sections of the menu labeling rule, and all the technical labeling revisions (such as rounding rules, formatting, and serving sizes).

“We noted that 20 years ago with the NLEA changes, FDA completed its related rulemaking simultaneously, including the rule-making on nutrient content claims and health claims, and provided a harmonized compliance date,” the letter said.

As of December 1, 2016, manu-facturers will not be able to delay the NFL implementation process any longer and meet FDA’s 2018 compliance deadline, the letter pointed out. Consequently, com-panies may start this complex, lengthy and costly process without sufficient information from FDA on how to properly label their products and may, therefore, inadvertently use labels that do not meet FDA’s expectations.

To that end, the food and bev-erage organizations requested that the government officials notify them with their response to this request by December 1, 2016.

Beyond the efficiencies and consumer cost-savings explained earlier, there are “significant addi-tional benefits” in allowing a single label change that can be achieved by issuing a harmonized compli-ance date, the letter said.

For example, consumers will be

introduced to a single label for-mat instead of potentially being exposed over several years to dif-ferent versions of the same label at the same time. Introducing a single label format will greatly enhance the effectiveness of the label as a tool to assist consumers in mak-ing healthful dietary choices. And consumer education efforts will be “much more efficient and effec-tive” using a single label format.

“Conversely, exposing con-sumers piece-meal to potentially numerous label changes over sev-eral years and to products using multiple versions of the label at the same time may significantly under-mine consumer education efforts and the effectiveness of the label in guiding consumer choices.”

Congress has mandated that USDA issue its final bioengineered food disclosure rules by July 29, 2018. These requirements, similar to the mandatory NFL revisions, will likely apply to the vast major-ity of US food labels.

“Given the magnitude of the number of products involved, it is reasonable to foresee the need for a compliance timeframe sufficient to make all the required changes.”

The food and beverage asso-ciations requested that the gov-ernment officials give “serious consideration” to coordinating a harmonized compliance date for the mandatory NFL revisions and bioengineered food disclosures that also takes into consideration the numerous other label revisions noted earlier.

“This should provide FDA and USDA sufficient time to issue critical final guidance documents, allow industry to coordinate a single label revision, and facilitate effective consumer education ini-tiatives, without undue burdens and excessive waste,” the letter added.


Patents Awarded For Non-Settling Hydrolyzed Whey Permeate, Cheese From Acid WheyWashington—The US Patent and Trademark Office (USPTO) recently awarded a patent for an invention that includes a method for producing non-settling hydro-lyzed whey permeate concentrate, the hydrolized whey permeate con-centrate produced thereby, and nutritive products containing same or produced therefrom.

Inventors are Steve C. Lamb and Steve Hollins. The patent was assigned to Milk Specialties Com-pany.

The invention also includes nutritional supplement and addi-tive compositions in liquid or solid form that may be used in a wide variety of human and livestock applications. Also included are methods of preparing the nutri-tional supplement and additive compositions, as well as foodstuffs, using hydrolyzed whey perme-ates made in accordance with the invention.

This invention includes a method of producing a non-set-tling hydrolyzed whey permeate with an enzyme, the method com-prising the steps:

—subjecting the whey perme-ate having an initial solids content in the range of from about 15 to about 25 percent solids to hydroly-sis by an enzyme, so as to obtain a whey permeate hydrolysate having a degree of hydrolysis above about 65 percent and preferably between about 65 percent and about 80 per-cent; and

—subjecting the whey perme-ate hydrolysate to evaporation so as to bring the level of solids in the whey permeate hydrolysate to within a range of from about 60 to about 80 percent solids, so as to obtain a whey permeate hydro-lysate concentrate whose settling profile is such that there is no detectable settling over two weeks when stored at 90 degrees F.

The method of this invention allows the production of a “milk syrup” liquid which is a pumpable, pourable, non-settling liquid pref-erably at 75 to 80 percent solids and which contains hydrolyzed lactose components and milk min-erals. The liquid product composi-tion of this invention may be used as a brown rice syrup replacement in food products, such as for nutri-tion/protein bars and the like.

Also, the liquid product com-position of this invention may be applied as an agglomeration aid for fast dispersing dried milk replace-ment products in a wide variety of forms and for several applications, such as a natural dairy beverage additive in the form of agglomer-ated natural milk powder.

The invention also allows for the production of a dry product with the same composition as the liquid concentrate produced in For more information, circle #15 on the Reader Response Card on p. 18

accordance with the invention. The dry product composition may be used in place of a corn syrup solids replacement for ice cream and other food applications.

Meanwhile, USPTO recently awarded a patent for processes for making cheese products using denatured acid whey proteins.

The inventors are Jon R. Gut-knecht and John B. Ovitt. The patent was assigned to Franklin Foods Holdings Inc.

In an example of an implemen-tation of the invention, a process is provided that includes:

—providing a dilute aqueous liquid acid whey protein compo-sition containing acid whey pro-teins;

—filtering the dilute aqueous liquid acid whey protein compo-sition, forming a concentrated aqueous liquid acid whey protein

composition containing acid whey proteins;

—combining together the con-centrated aqueous liquid acid whey protein composition and an edible caustic composition in suitable proportions to result in a substan-tially neutral pH;

—denaturing the acid whey pro-teins at an elevated temperature, forming a concentrated aqueous liquid denatured acid whey protein composition;

—providing a milk composi-tion containing butterfat and sub-stantial concentrations of native casein and whey proteins;

—combining together the milk composition and the concentrated aqueous liquid denatured acid whey protein composition, form-ing a dairy mix containing but-terfat and a protein composition including native casein and whey proteins and denatured acid whey proteins;

—inoculating the mix with lac-

tic-acid producing bacteria;—culturing the lactic acid-pro-

ducing bacteria in the dairy mix, forming a curd and a whey;

—separating the curd from the whey; and

—recovering the curd as a cheese product.

In a further example, the cul-turing of the lactic acid-producing bacteria in the dairy mix may include forming the whey as acid whey; and the providing of the dilute aqueous liquid acid whey protein composition may include recovering the acid whey after sep-arating the curd from the whey, and recycling the recovered acid whey as being the dilute aqueous liquid acid whey protein composition containing acid whey proteins. As another example, the combining together of the milk composition with the concentrated aqueous liq-uid denatured acid whey protein composition may be at least semi-continuously carried out.


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Winners Revealed In First Annual Great British Cheese Awards In London

London—Winners in the inaugu-ral Great British Cheese Awards were announced here Tuesday during a special ceremony at The Gilbert Scott.

The awards, organized in part-nership with Peter’s Yard, were designed to recognize, promote and reward excellence in the UK’s artisan cheese industry, which has grown over the past few years into a thriving move-ment.

The contest featured 10 cat-egories. The People’s Choice winner was Cornish Blue by the Cornish Cheese Company. A Sharpham Brie was the runner-up.

The award for Best Artisan Producer went to Mrs. Kirkham’s Lancashire Cheese with Ludlow Food Centre as the runner-up.

The award for Best Cheese Retailer went to Country Cheeses, a company that started with six cheeses and a market stall in Devon. Runner-up with The Cheese Shed.

Kingstone Dairy won the award for Best New Producer. Based in Oxfordshire, Kingstone Dairy has only been selling its award-winning Rollright cheese since March 2015. The runner-up was Yorkshire Pecorino.

Made by Two Hoots Cheese on the Hampshire/Berkshire border, Barkham Blue won the award for

Best Blue Cheese. The runner-up was Stichelton.

The Best Fresh Cheese was Moody’s Rosary Ash. It’s been made in Salisbury for many years, but has achieved national recog-nition in the past few years after winning several awards. Perroche earned the runner-up spot.

Cornish Gouda won the award for Best Hard Cheese.

“It feels great to be rewarded for all the hard work,’ said cheese maker Giel Spierlings, who started making Cornish Gouda four and a half years ago.

“I came home from college to see a ‘for sale’ sign on the farm gate and decided I was going to start making cheese to try and keep the farm going. My mum and dad bought the farm with a big mortgage and the indus-try just collapsed, so there was no money and they were going to sell up, but I decided that I wanted to carry on farming,” Spierlings said.

The runner-up for Best Hard Cheese was Lincolnshire Poacher.

The honor for Best Semi-soft went to Yorkshire Pecorino made by Mario Oliana.

“I’ve been making cheese for four years now, and I’m really chuffed to bits for Yorkshire Pecorino to be crowned the best semi-soft cheese in Britain,” Oli-ana said.

British cheese makers and retailers were honored this week at the first annual Great Brit-ish Cheese Awards at The Gilbert Scott in London.

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NZ’s Dairy Regs(Continued from p. 1)

Kiwi Cooperative Dairies — with the New Zealand Dairy Board to form Fonterra, a single cooperative company.

The raw milk regulations, made under the DIRA, require Fonterra to sell a specified amount of raw milk to other dairy processors at an agreed or regulated price.

“When Fonterra was formed as the dominant market player, DIRA was established to ensure an efficient and innovative dairy industry to promote the long-term interests of farmers and consum-ers,” Guy noted.

A report from the New Zealand Commerce Commission earlier this year “found that competition is not yet sufficient to warrant deregula-tion at this point,” Guy continued (for details on that report, please see “Competition Is Not Sufficient,” on page 1 of our March 4, 2016 issue by scanning the QR Code on page 2 of this issue).

“Once sufficient competition is in place, competitive pressure, rather than the DIRA regulatory provisions, should drive the effi-ciency of New Zealand dairy mar-kets,” Guy added.

About 100 submissions were received on the New Zealand gov-ernment’s subsequent proposals to amend DIRA. These were split between those who wanted further deregulation of Fonterra and those who said Fonterra was still in a

dominant position.The changes will alter who is

eligible for regulated milk from Fonterra, and the terms that it is available on. Specifically, Fonterra will no longer be required to sell regulated milk to large, export-focused dairy processors from the start of the 2012/20 season.

Also, all processors purchasing regulated milk will have reduced flexibility in forecasting the vol-ume of regulated milk they intend to purchase from Fonterra from the start of the 2018/19 season.

Other changes to rhe DIRA regulatory regime include: Prevent the efficiency and

contestability provisions of the DIRA from expiring in the South Island, and require that the next review of the state of competition in the New Zealand dairy indus-try commence during the 2020/21 dairy season. Enable ongoing monitoring

of dairy markets. Allow Fonterra discretion

to accept applications to become shareholders from new dairy con-versions from 2018/19.

“Consultation provided new information about risks of some of the originally proposed changes to regulated milk, particularly from downstream markets and consum-ers,” Guy said. “The government is therefore deferring the consid-eration of those potential changes to regulated milk for Goodman Fielder and small or domestically focused processors.”


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SDSU Takes Top Honors In Midwest Collegiate Dairy Products Sensory Evaluation ContestGlenview, IL—South Dakota State University captured the team title in the 45th Midwest Regional Collegiate Dairy Prod-ucts Sensory Evaluation Contest, which was held last Saturday at the KraftHeinz Technical Center in Glenview, IL.

Second place in the team rank-ings for all products went to the University of Tennessee, while Iowa State University finished in third place.

Krista Johnson of South Dakota State was the top individual judge for all products, followed by Ben-net Baker, also of South Dakota State, in second place, and Mona Tiller of the University of Tennes-see in third place.

Kelsey Choquette of Iowa State was the top graduate student judge, followed by Madeline Brandt of the University of Minnesota in second place and Alexandra Kuechel of the University of Minnesota in third place.

Following are the top teams and individuals in each of the six prod-uct classes:

Cheddar cheese: South Dakota State was the top team, followed by Iowa State in second place and Clemson in third. Madeline Waskiewicz of Clemson was the top individual Cheddar judge, with SDSU’s Ben-net Baker taking second place and Iowa State’s Emily Simonson fin-ishing third.

Iowa State’s Kelsey Choquette was the top individual Cheddar cheese judge among the graduate students.

Butter: South Dakota State was the top team, with the University of Min-nesota taking second and Michigan State University finishing third. SDSU’s Krista Johnson was the top individual butter judge, with Minnesota’s Carmen Owen-Bock taking second place and SDSU’s Bennet Baker finishing third.

Minnesota’s Madeline Brandt was the top individual butter judge among the graduate students.

Fluid milk:Iowa State was the top team, fol-lowed by the University of Wiscon-sin in second place and Tennessee

in third place. Iowa State’s Zenia Adiwijaya was the top individual milk judge, followed by Wiscon-sin’s Lauren Sipple in second place and Tennessee’s Kindal Tatum in third.

Iowa State’s Kelsey Choquette was the top individual fluid milk judge among the graduate students.

Yogurt: South Dakota State was the top team, followed by Clemson in sec-ond place and Tennessee in third place. SDSU’s Bennet Baker was the top individual yogurt judge, followed by his teammate Krista Johnson in second place and Clemson’s Madeline Waskiewicz in third.

Iowa State’s Kelsey Choquette was the top individual yogurt judge among the graduate students.

Cottage cheese: South Dakota State was the top team, followed by Clemson in sec-ond place and Tennessee in third. SDSU’s Bennet Baker was the top individual cottage cheese judge, followed by South Dakota State’s Krista Johnson in second place and Clemson’s Madeline Waskiewicz in third.

Minnesota’s Alexandra Kuechel was the top individual cotttage cheese judge among the graduate students.

Ice cream: South Dakota State was the top team, followed by Tennessee in second place and Minnesota in third. Minnesota’s Emily Petterson was the top individual ice cream judge, followed by South Dakota State’s Krista Johnson in second place and SDSU’s Bennet Baker in third.

SDSU’s Steve Beckman was the top individual ice cream judge among the graduate students.

The Midwest Regional Colle-giate Dairy Products Sensory Eval-uation Contest is jointly sponsored by the Chicago Dairy Technology Society, KraftHeinz Company, and the Collegiate Dairy Products Evaluation Contest.

A total of nine teams partici-pated in this year’s contest, which is open to any university that has a food science or dairy science pro-grams.

The teams are comprised of juniors and seniors, with a separate division for graduate students.

There will not be a Collegiate Dairy Products Evaluation Contest this year.

The 94th contest, which was held in September 2015, was hosted by the International Dairy Foods Association and took place at the International Dairy Show at Chicago’s McCormick Place.

The 95th Collegiate Dairy Prod-ucts Evaluation Contest is sched-uled for Wednesday, April 12, 2017, at the Alliant Energy Cen-ter in Madison, WI, and is being hosted by the Wisconsin Cheese Makers Association (WCMA). The contest will take place dur-ing the Wisconsin Cheese Industry Conference, which is co-sponsored by the WCMA and the Wisconsin Center for Dairy Research.

Although next year’s contest will be the 95th, the Collegiate Dairy Products Evaluation Con-test actually dates back 100 years, when it was called the “Students Butter Judging Contest.”

The contest was not held from 1942 through 1946 due to World War II.

For more information about the Collegiate Dairy Products Evalua-tion Contest, including informa-tion on how to become a contest sponsor, visit: www.dairyprod-uctscontest.org.

Agri-Mark, Vermont Gas Team Up To Reduce Energy Consumption At Middlebury Cheese PlantMiddlebury, VT—A new partner-ship between Vermont Gas and several of its energy partners has helped Agri-Mark’s Middlebury cheese and whey plant significantly reduce its energy consumption, reducing its overall environmental impact and reducing the cost of running the facility.

The Vermont Gas Energy Effi-ciency team worked together with Agri-Mark to identify ways to use natural gas more efficiently. This included repair and replacement of steam traps, which can leak other-wise usable steam.

With these efficiency upgrades, the cooperative will save over 14,000mcf per year, and at the same time save over $100,000 per year.

“Our partnership with Vermont Gas has provided us the opportu-nity to make real strides in reduc-ing our carbon footprint,” said Doug DiMento, Agri-Mark’s direc-tor of communications.

“These innovations and savings also benefit our business and the livelihood of our farm family own-ers both in Addison county and throughout New England and New York.”


www.cheesereporter.com/events.htmSUPPLIER NEWS

COMPANY NEWS

PEOPLE

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

Nov. 6-9: PACK Expo Interna-tional, McCormick Place, Chi-cago, IL. For more details, visit www.packexpointernational.com.

•Jan. 22-24, 2017: Winter Fancy Food Show, San Francisco, CA. For more details, visit www.spe-cialtyfood.com.

•Jan. 29-Feb. 1: 2017 Dairy Forum, J.W. Marriott Orlando Grande Lakes, Orlando, FL. For information, visit www.idfa.org.

•March 7-8: 2017 US Champi-onship Cheese Contest, Green Bay, WI. Visit www.uschampi-oncheese.org.

•April 4-6: ProFood Tech, McCormick Place, Chicago, IL. For more information, visit www.profoodtech.com.

•April 12-13: 2017 Wisconsin Cheese Industry Conference, Alliant Energy Center, Madison, WI. For more information, visit www.cheeseconference.org.

•April 23-25: ADPI/ABI Joint Annual Conference, Chicago Marriott Downtown, Chicago, IL. For more information, visit www.adpi.org.

•June 4-6: 53rd IDDBA Confer-ence & Expo, Anaheim Conven-tion Center, Anaheim, CA. For details, visit www.iddba.org.

PLANNING GUIDE

STATEMENT OF OWNERSHIPMANAGEMENT AND CIRCULATION

1. Publication Title: Cheese Reporter2. Publication Number: 009-21423. Filling Date: September 2, 20164. Issue Frequency: Weekly5. Number of Issues Published Annually: 526. Annual Subscription Price: $140.007. Complete Mailing Address of Known Office of Publication: 2810 Crossroads Drive, Suite 3000, Madison, Dane County WI 53718-79728. Complete Mailing Address of Headquarters of General Business Office of Publisher: 2810 Crossroads Drive, Suite 3000, Madison, Dane County WI 53718-79729. Full names and complete mailing address of Publisher, Editor and Managing Editor: Publisher, Richard D. Groves, 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-7972 Editor, Richard D. Groves, 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-7972, Managing Editor, Richard D. Groves, 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-797210. Owner: Cheese Reporter Publishing Co. Inc., 2810 Crossroads Drive, Suite 3000, Madison, Dane County WI 53718-7972. Stockholder: Richard D. Groves, N2392 Sum-merville Park Road, Lodi, Columbia County WI 53555-962111. Known Bondholders, Mortgages, and Other Security Hold-ers Owning or Holding 1 Percent or More of Total Amount of Bonds, Mortgages, or Other Securities: None12. Tax Status: Has not changed during preceding 12 months13. Publication Title: Cheese Reporter14. Issue Date for Circulation Data Below: September 2, 2016 15. Extent and Nature of Circulation (Average No. Copies Each Issue During Preceding 12 Months) a. Total Number Copies (Net Press Run): 1280 b. (1) Paid/Requested Outside-County Mail Subscriptions Stated on Form 3541: 973 (2) Paid-in County Subscriptions: 71 (3) Sales through Dealers and Carriers, Street Vendors, Counter Sales, and Other Non-USPS Paid Distribution: 65 (4) Other Classes Mailed Through the USPS:121 c. Total Paid and/or Requested Circulation: 1230 d. Free distribution by Mail (Samples, complimentary, and other free): (1) Outside-County as Stated on From 3541: 0; (2) In-County as Stated on Form 3541: 0 (3) Other Classes Mailed Through the USPS: 0; (4) Free or Nominal Rate Distri-bution Outside the Mail: 0e. Total free distribution:0f. Total distribution:1230g. Copies not distributed: 50h Total: 1280i. Percent paid and/or Requested Circulation: 100%15. Extent and Nature of Circulation (No. Copies of Single Issue Published Nearest to Filling Date a. Total Number Copies (Net Press Run): 1203b. (1) Paid/Requested Outside-County Mail Subscriptions Stated on Form 3541: 968 (2) Paid-in County Subscriptions: 69 (3) Sales through Dealers and Carriers, Street Vendors, Counter Sales, and Other Non-USPS Paid Distribution: 0 (4) Other Classes Mailed Through the USPS: 116 c. Total Paid and/or Requested Circulation: 1153 d. Free distribution by Mail (Samples, complimentary, and other free): (1) Outside-County as Stated on From 3541: 0; (2) In-County as Stated on Form 3541: 0; (3) Other Classes Mailed Through the USPS: 0; (4) Free distribution outside mail: 0e. Total free distribution: 0f. Total distribution: 1153g. Copies not distributed: 50h. Total: 1203i Percent paid and/or Requested Circulation: 100%16. Paid Electronic Circulation Average No. Copies Each Issue During Preceding 12 months.a. Paid electronic copies: 459b. Total Paid Print Copies (line 15c) + Paid Electronic Copies (Line 16a): 1689c. Total Print Distribution (Line 15f) + Paid Electronic Copies (Line 16a): 1689d. Percent Paid (Both Print & Electronic Copies) 16b divided by 16c x 100): 100%16. Paid Electronic Circulation Average No. Copies of Single Issue Published Nearest to Filing Date.a. Paid electronic copies: 525b. Total Paid Print Copies (line 15c) + Paid Electronic Copies (Line 16a): 1678c. Total Print Distribution (Line 15f) + Paid Electronic Copies (Line 16a): 1678d. Percent Paid (Both Print & Electronic Copies) 16b divided by 16c x 100): 100%I certify that 50% of all my distributed copies (electronic and print) are paid above a nominal price17. This Statement of Ownership will be printed in the Octo-ber 28, 2016 issue of this publication17. Signature and title of Editor, Business Manager, or Owner: (Signed) Richard D. Groves, Publisher, Date Septem-ber 26, 2016 I Certify that all information furnished on this form is true and complete. I understand that anyone who furnishes false or misleading information on this form or who omits material or information requested on the form may be subject to crimi-nal sanctions (including fines and imprisonment) and/or civil sanctions (including multiple damages and civil penalties).

Online Registration For Pizza Expo Opens Nov. 8; To Be March 27-30 In Las VegasLas Vegas, NV—Online regis-tration for the International Pizza Expo, to be held here March 27-30, 2017 at the Las Vegas Convention Center, opens Monday, Nov. 8.

The Monday program of semi-nars and early-evening reception are designed for anyone starting a new pizza company or seeking to improve an existing pizza menu.

A session on specialty cheeses will feature world champion pizza maker Tony Gemignani on authentic cheese applications used in Detroit, St. Louis, coal-fire, Neapolitan, New York and other popular styles.

Attendees will learn how to use these specialty cheeses and sample selected regional and imported varieties at seminar’s end. Gemig-nani will also introduce some new types of cheeses that can go on experimental pizzas.

Boston pizzeria owner Doug Ferriman will discuss how innova-tion helps drive business, followed by a panel discussion on aging or enhancing pizza dough.

Another session entitled “Seven Essential Systems for Your First Pizzeria” will cover the essential

systems necessary for a first unit — and for each new store as pizza sales grow.

Restaurant consultant and the owner of 15 Which Wich Superior Sandwich shops, T.J. Schier will pass along systems to have in place to be profitable, including hiring, on-boarding, training, operations, manpower planning, local-store marketing and rewarding staff.

Gerry O’Brion, former executive for billion-dollar restaurant brands such as Quiznos and Red Robin, will reveal his Restaurant Formula for the most successful restaurant brands.

Attendees will learn the four pillars of a powerful concept, and the six “critical execution fac-tors” that unlock revenue growth. O’Brion also will show partici-pants how to create raving fans that become a restaurant’s best marketing for free.

Commodities expert Robert Chesler of INTL FCStone Inc, will show how commodities fluctua-tions create a big impact on profit margins, and discuss how to take control of them. Attendees will earn how to identify profit goals,

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set a desired profit margin and then keep money flowing in the right direction.

A final session will cover com-mon mistakes starting a pizza operation and how to avoid them. Panelists include: Mike Bausch, owner of three-unit Andolini’s in Tulsa, OK; Doug Ferriman, with nine stores in Boston ; Jeff Smokev-itch, who recently opened his third store in Colorado; and Pasquale Di Diana, who opened the 11th Bacci Pizza store in Chicago in 2016.

The four-day conference includes advanced training for pizzeria own-ers and managers, including the School of Pizzeria Management. The half-day sessions are designed to serve as advanced training for

pizzeria owners and managers who wish to strengthen their businesses and elevate profits.

For more details and registration information, visit www.pizzaexpo.com.


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

rvin

gth

eWorld's Dairy Industry W

eekly

Since 1876

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

1. Equipment for Sale

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

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

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

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

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

2. Equipment Wanted

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

ULLMER’S DAIRY EQUIPMENT is looking to buy used daisy hoops, midget hoops, A-frame presses, 20- pound block molds, water/milk silos, homogenizers, and separators. Con-tact us at (920) 822-8266 or e-mail us at [email protected].

3. Cheesecloth

CHEESECLOTH FOR ALL YOUR CHEESEMAKING NEEDS- Grade 60 (32x28) White Cheesecloth: $241*/Case. 36” Wide x 60 Yards. All con-structions, medical grade. Microfiber and dairy wipers too. Contact Lucy Bauccio at Monarch Brands by emaill-ing [email protected] or call 267-238-1643

4. Walls, Flooring

EPOXY OR FIBERGLASS floors, walls,

tank-linings, and tile grouting. Installed

by M&W Protective Coating Co. LLC.

For more information, please call (715)

234-2251.

4. Walls, Flooring

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

5. Real Estate

DAIRY PLANTS FOR SALE: http://

dairyassets.webs.com/dairy-plants.

Call Jim at 608-835-7705

6. Promotion & Placement

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

7. Consultants

10. Cheese & Dairy Products

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

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

Masters Gallery Foods, Inc.Plymouth, Wisconsin Masters Gallery Foods, Inc.Masters Gallery Foods, Inc.Plymouth, Wisconsin Masters Gallery Foods, Inc.Plymouth, Wisconsin Masters Gallery Foods, Inc.Plymouth, Wisconsin Masters Gallery Foods, Inc.Plymouth, Wisconsin Masters Gallery Foods, Inc.Plymouth, Wisconsin Masters Gallery Foods, Inc.Plymouth, Wisconsin Masters Gallery Foods, Inc.Plymouth, Wisconsin Masters Gallery Foods, Inc.

An Affirmative Action/Equal Opportunity Employer:Minorities, Women, Veterans, Disabilities

PRODUCTION SUPERVISOR—3rd Shift (1:00am–9:00am, Monday–Friday)The Production Supervisor is responsible for co-supervising all 3rd shift production operations including approximately 120 production associates.

Qualified candidates will possess:

CONTINUOUS IMPROVEMENT COORDINATOR—1st Shift (8:00am–5:00pm, Monday–Friday)The Continuous Improvement Coordinator is responsible for oversight and coordination of operations-based continuous improvement (CI) activities including analyzing and implementation of improvement plans for productivity, cost reduction, 5S, lean manufacturing projects and miscellaneous CI activities.

Qualified candidates will possess:

matter• Associate Degree in Business Administration,

supervisory management or a related field.• 5-7 years of progressively responsible supervisory

management experience working in a high-speed packaging environment.

• Bachelors Degree, preferably in Process Engineering, Quality or equivalent experience working in a food manufacturing environment.

• 2-3 years of progressive experience in a high-speed food manufacturing environment, quality and/or safety experience is a plus.

• Effective communication and proven leadership skills.

• Ability to work in a fast-paced work environment.

• Six Sigma Green Belt with the ability to obtain Black Belt.

• Exceptional analytical abilities.• Ability to work in high pressure, results driven

environment.

Qualified candidates may apply online at www.mastersgalleryfoods.com/careers

10. Cheese & Dairy Products

WANTED TO BUY: 40,000 pounds of USDA Graded Cheddar cheese in 40-lb. blocks for donation to humanitarian needs. Contact with amount available and location of cheese. For October 17 through October 31 Dairy Pricing Association will be paying $1.65 a pound. Contact DAIRY PRICING ASSOCIATION by telephone: 715-284-2590 or email: [email protected].

14. Warehousing

FREEZER SPACE AVAILABLE: We have expanded and have freezer space available. Please contact Bob at Martin Warehousing at 608-435-6561 ext *229 or email Bob at [email protected]

REFRIGERATION, DRY & FROZEN STORAGE SPACE AVAILABLE: We’ve added cooler space and a heated dry storage area. Contact: Eric at SUGAR RIVER COLD STORAGE at Call 1-877-283-5840 or email [email protected]

COLD STORAGE AVAILABLE in Dod-geville, WI. Rackable, 4-way pallets, daily transfers, weekly or monthly rates. Call John Schurman at (608) 935-5741

16. Milk

LOOKING FOR EXTRA MILK? Trying to sell excess milk? Looking for Goat’s milk? Buffalo milk? Advertise your sup-ply or search here and www.cheesere-porter.com. Call 608-246-8430.

PROCESS ENGINEER Caloris Engineering LLC, a supplier of evaporation, membrane and drying solutions to the food, beverage, ethanol and industrial wastewater industries, is seeking an experienced process engineer.

Responsibilities Include: • Process design development

• Specification of equipment • Leading on-site commissioning

• Training customer personnel

• Troubleshooting process issues and bringing them to a successful conclusion

Caloris offers a great working environment in Easton, Md., with a benefits package that includes health, dental, vision, 401(k) and travel incentives.

For a complete job description and to apply, applicants with five years of experience or more please visit http://caloris.com/careers/

Western Repack

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

Handling cheese both as a service and on purchase.

Bring us your special projects

Western Repack, LLC(801) 388-4861

We Purchase Fines and Downgraded Cheese


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

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

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

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

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

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

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

Issue Date: 10/28/16

1 2 3 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128

PLEASE SEND ME MORE INFORMATION ON:___Subscribing to Cheese Reporter___Cheese Reporter’s Reference Books

___Material to advertise in Cheese Reporter___Other____________________________

For historical dairy product prices, visit www.cheesereporter.com/helpwanted.htm

or e-mail [email protected]

Dairy Product Stocks in Cold StorageTOTAL STOCKS AS REPORTED BY USDA (in thousands of pounds unless indicated) Public Stocks in All September 30, 2016 Warehouse Warehouses as a % of Stocks Sept. 30 August 31 Sept 30 Sept 30 Aug 31 Sept. 30 2015 2016 2016 2015 2016 2016

Butter 187,528 318,774 269,170 144 84 245,113

Cheese American 698,875 742,497 744,003 106 100 Swiss 22,037 26,019 25,151 114 97 Other 431,534 472,603 468,854 109 99

Total 1,152,446 1,241,119 1,238,008 107 100 822,133

October 26, 2016—AMS’ National Dairy Products Sales Report. Prices included are provided each week by manufacturers. Prices collected are for the (wholesale) point of sale for natural, unaged Cheddar; boxes of butter meeting USDA standards; Extra Grade edible dry whey; and Extra Grade and USPH Grade A nonfortified NFDM. •Revised

WEEK ENDINGStyle and Region Oct. 22 Oct. 15 Oct. 8 Oct. 1

40-Pound Block Cheddar Cheese Prices and Sales Weighted Price Dollars/PoundUS 1.5644 1.5757 1.6189• 1.6682•Sales Volume PoundsUS 12,866,698 13,798,375 12,688,720• 13,854,809

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

Weighted Price Dollars/PoundUS 1.5991 1.6169 1.6144 1.6790 Weighted Price Adjusted to 38% Moisture US 1.5250 1,5440 1.5424 1.5952 Sales Volume PoundsUS 10,393,863 11,037,538 10,557,601 11,166,195Weighted Moisture Content PercentUS 34.99 35.07 35.11 34.74

Butter

Weighted Price Dollars/PoundUS 1.8405 1.8515• 1.9471 2.0494Sales Volume PoundsUS 2,869,450 6,798,880• 3,442,867 2,435,028

Dry Whey Prices

Weighted Price Dollars/PoundsUS 0.3428 0.3254• 0.3092 0.3135Sales Volume US 5,593,247 6,196,055• 5,977,563 6,567,321

Nonfat Dry Milk

Average Price Dollars/PoundUS 0.9193 0.9217 0.9334 0.9059Sales Volume PoundsUS 11,975,791 15,091,116 14,646,012 19,763,075

DAIRY PRODUCT SALES

396375.5 369.4 379.7

356.8

431.5468.9

636.9 639.2 641.7661

631.3

698.9

744

2010 2011 2012 2013 2014 2015 2016

American-Typevs Other NaturalCheese StocksSeptember 30 of Selected Years in millions of pounds

WPC Prices Since 2010High/Low Range (Edible 34% Central and West)

$0.25

$0.50

$0.75

$1.00

$1.25

$1.50

$1.75

$2.00

The WPC price at the high range is at its highest level since June 2015.

$1.25

$1.30

$1.35

$1.40

$1.45

$1.50

$1.55

$1.60

$1.65

$1.70

$1.75

$1.80

$1.85

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

40-Pound Block Avg

CME vsAMS

DAIRY FUTURES PRICESSETTLING PRICE *Cash SettledDate Month Class III* Class IV* Dry Whey* NDM* Butter* Cheese*10-21 October 16 15.21 14.35 33.700 95.750 204.275 1.616010-24 October 16 15.16 14.32 33.050 95.950 193.700 1.611010-25 October 16 14.98 14.19 33.150 95.425 192.000 1.594010-26 October 16 14.91 14.15 32.700 95.350 191.250 1.593010-27 October 16 15.04 14.02 32.700 94.025 191.250 1.6070

10-21 November 16 15.63 14.65 34.750 97.650 196.750 1.650010-24 November 16 15.44 14.62 34.050 97.725 196.000 1.635010-25 November 16 15.23 14.37 34.550 96.500 192.450 1.613010-26 November 16 15.18 14.31 34.600 96.300 192.025 1.609010-27 November 16 15.48 14.14 35.150 95.250 190.250 1.6400

10-21 December 16 15.50 14.79 35.000 100.850 195.000 1.635010-24 December 16 15.37 14.79 34.700 100.400 195.500 1.625010-25 December 16 15.24 14.79 34.450 98.925 191.075 1.616010-26 December 16 15.15 14.43 34.750 98.750 190.500 1.609010-27 December 16 15.41 14.33 35.150 98.000 188.550 1.6310

10-21 January 17 15.38 15.06 35.075 104.100 195.000 1.628010-24 January 17 15.30 15.06 34.750 103.975 196.000 1.624010-25 January 17 15.23 14.89 35.000 102.250 192.075 1.615010-26 January 17 15.20 14.76 35.000 102.000 191.250 1.610010-27 January 17 15.39 14.62 35.850 101.000 190.000 1.6210

10-21 February 17 15.50 15.40 35.250 106.750 196.600 1.632010-24 February 17 15.46 15.40 35.500 106.625 196.000 1.631010-25 February 17 15.40 15.22 35.050 106.325 193.525 1.630010-26 February 17 15.40 15.12 35.050 105.250 193.500 1.629010-27 February 17 15.57 15.03 36.000 104.500 192.550 1.6320

10-21 March 17 15.64 15.66 35.650 108.650 199.000 1.650010-24 March 17 15.61 15.66 35.750 108.650 198.500 1.647010-25 March 17 15.55 15.50 35.725 108.200 196.000 1.644010-26 March 17 15.56 15.44 35.500 107.325 196.025 1.647010-27 March 17 15.67 15.39 36.000 106.700 196.000 1.6460

10-21 April 17 15.70 15.90 35.850 111.625 199.000 1.654010-24 April 17 15.68 15.90 36.000 111.625 199.000 1.654010-25 April 17 15.59 15.62 35.550 111.650 196.100 1.650010-26 April 17 15.62 15.60 35.550 109.500 196.750 1.653010-27 April 17 15.75 15.60 36.650 110.775 196.775 1.6550

10-21 May 17 15.88 16.13 36.000 116.000 200.000 1.677010-24 May 17 15.90 16.13 35.750 116.000 200.000 1.674010-25 May 17 15.83 15.92 35.800 115.250 198.000 1.670010-26 May 17 15.84 15.92 35.800 112.000 198.000 1.672010-27 May 17 15.97 15.92 36.300 113.225 198.000 1.6800

10-21 June 17 16.14 16.35 36.250 117.475 200.550 1.694010-24 June 17 16.15 16.35 36.250 117.475 200.550 1.694010-25 June 17 16.10 16.27 36.300 117.450 198.800 1.694010-26 June 17 16.10 16.18 36.300 115.050 198.800 1.694010-27 June 17 16.20 16.18 36.300 116.325 198.800 1.7060

10-21 July 17 16.36 16.59 37.000 116.500 203.000 1.716010-24 July 17 16.34 16.59 37.000 117.450 203.000 1.719010-25 July 17 16.22 16.58 36.250 117.000 203.000 1.719010-26 July 17 16.34 16.58 36.250 117.000 203.000 1.719010-27 July 17 16.45 16.58 37.400 115.025 203.000 1.7200

10-21 August 17 16.55 16.79 37.475 120.375 205.000 1.735010-24 August 17 16.55 16.79 37.475 120.375 205.000 1.736010-25 August 17 16.55 16.78 37.475 120.375 204.000 1.736010-26 August 17 16.56 16.78 37.475 120.375 203.025 1.736010-27 August 17 16.60 16.78 37.475 117.950 203.075 1.7360

Interest - Oct. 27 32,717 4,883 4,833 5,727 7,177 25,161

CHEESE REPORTEROctober 28, 2016 Page 19Page 19

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

10/24/16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,591 82,59210/01/16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,462 87,250Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -3,871 -4,658

NATIONAL - OCT. 21: With milk readily available and components on the rise, cheese production is seasonally strong and near full capacity at many US cheese facilities. In the West, a few manufacturers are shifting their focus to Italian style cheeses as opposed to American types. Northeast market participants note cheese stocks are sufficient for most near term commitments, however some Mozzarella inventories are sold out. Midwest cheese makers are seeing cheese orders increase seasonally. A few manufacturers are getting more inquiries from export channels. Although sales have not yet developed, cheese makers are hopeful it is a sign that those market opportunities may be able to grow in the near future. Supplies of foreign type cheese manufactured in Western Europe continue to be tight. Some industry contacts suggest that cheese was somewhat undervalued prior to the jump of block and barrel cheese prices earlier in the week on the CME Group trading.

NORTHEAST- OCT. 26: Cheese production continues at a pace comparable to last week. Additional demand for fluids from Class II accounts, for holiday production needs, bear on some plants’ milk supplies. Cheese stocks are mostly current with good demand for Moz-zarella, aged Cheddar, and cream cheese. Sales transactions are steady. Cream cheese is progressing into typical heavy fall production. The market undertone is unsettled.

Wholesale prices, delivered, dollars per/lb:Cheddar 40-lb blocks: $2.0525 - $2.3375 Process 5-lb sliced: $1.7675 - $2.2475Muenster: $2.0375 - $2.3875 Swiss Cuts 10-14 lbs: $3.1425 - $3.4650

MIDWEST AREA - OCT. 26: Midwest cheese makers say milk is in good balance with production needs. With steady milk production and increasing components, cheese yields are improving. Spot loads of milk are available, but many cheese makers are content to use the milk available to them and only buy the milk if they have room and if the price is right. A few manufacturers are noting warehouses seem full as processors ramp up production for the holidays. Contacts think this will resolve itself once seasonal demand overtakes sup-ply. Cheese inventories are a little heavy for barrels but in better balance for blocks. Retail domestic consumer demand is solid, but seasonally slowing for process cheese.

Wholesale prices delivered, dollars per/lb: Process 5# Loaf: $1.6600 - $2.0200Brick/Muens 5# Loaf: $2.0225 - $2.4475 Cheddar 40# Block: $1.7500 - $2.1450Monterey Jack 10#: $1.9975 - $2.2025 Blue 5# Loaf: $2.29000 - $3.2775Mozzarella 5-6# (LMPS): $1.8225 - $2.7625 Grade A Swiss 6-9#: $2.6600 - $2.7775

WEST - OCT. 26: Dairy contacts say cheese production is strong and active. Manufac-turers seem willing to take extra loads of milk when available. Overall, milk is in pretty good balance with processing needs and gets quickly gobbled up by nearby processors. Cheese makers report good domestic retail demand and a solid pull from food service accounts. Some industry contacts suggest there is still plenty of cheese available; however, others report that western block supplies are much lighter than they were earlier in the season.

Wholesale prices delivered, dollars per/lb: Process 5# Loaf: $1.6750 - $1.9325Cheddar 40# Block: $1.7550 - $2.0000 Cheddar 10# Cuts: $1.9350 - $2.1550Monterey Jack 10#: $1.9450 - $2.1050 Grade A Swiss 6-9#: $2.7200 - $3.1500

FOREIGN -TYPE CHEESE - OCT. 26: Foreign type cheese prices continue to increase in Europe, most strongly for Cheddar and Mozzarella, less so for Emmentaler and hard Italian varieties. Stocks are at a low level. With the European milk supply continuing to decline, there is scant expectation of cheese stocks being rebuilt in coming weeks.

Selling prices, delivered, dollars per/lb: Imported DomesticBlue: $2.6400 - 5.2300 $2.2175 - 3.7050Gorgonzola: $3.6900 - 5.7400 $2.7250 - 3.4425Parmesan (Italy): 0 $3.6075 - 5.6975Romano (Cows Milk): 0 $3.4075 - 5.5575Sardo Romano (Argentine): $2.8500 - 4.7800 0Reggianito (Argentine): $3.2900 - 4.7800 0Jarlsberg (Brand): $2.9500 - 6.4500 0Swiss Cuts Switzerland: 0 $3.1800- 3.5025Swiss Cuts Finnish: $2.6700- 2.9300 0

NATIONAL - OCT. 21: Nationwide, but-ter production is very active as ample cream supplies continue clearing into churns. Most butter processors are running operations at full capacity ahead of the Q4 holiday needs. Microfixing is active as some processors want to rotate older stocks with fresh inven-tory. Bulk butter supplies are heavy. In order to lower bulk stocks, some manufacturers are selling at lower prices in the spot mar-ket. The current bulk prices are improving buyers’ demand. Bulk butter prices reported throughout the country are ranging from 2 cents under to 8 cents over the market, based on the CME Group with various periods and averages used. Print butter requests from retailers are strong.

NORTHEAST - OCT. 26: Some but-ter operations in the region are subject to an ease in production as Class II cream procurements peak for holiday processing needs, as those operations rely upon in-house and contracted cream loads. Butter plants continue to grind and micro fix exist-ing bulk supplies to fill orders. Inventories are sufficient for near term customer needs. The market undertone remains unsettled. This week, reported bulk butter transactions included prices ranging 3 to 5 over the CME Group with various time frames and aver-ages used. Active price fluctuations at the CME Group are limited in effect, on buyers’ demand, as the CME volume of butter trans-actions surged.

CENTRAL - OCT. 26: Regional but-ter manufacturing is very active. Farm milk output and components are up. As a result, cream is readily available for churning. Most butter processors are running at full capacity as holiday orders continue to develop. Bulk stocks are heavy to moderate. Some churn operators are trying to lower inventories after microfixing. Spot prices at the CME group are starting to firm again. Print production is ongoing. Demand from retailers is strong as the Q4 holidays are very close. Some manufacturers and buyers are settling up contracts agreements for Q1 2017. Bulk but-ter prices reported ranged from one cent under market to 6 cents over the market, with various periods and averages used. The national weighted average advertised price for a 1-pound package of butter is $2.98, 31 cents below one week ago and 37 cents lower than one year ago.

WEST - OCT. 26: Western butter churns are active as butter makers ramp up in advance of holiday demand. Industry con-tacts say production and sales are strong. Cream supplies are adequate for most pro-cessing needs, although Cottage cheese, cream cheese sour cream are pulling heavily for available cream. Butter inventories may still be long as compared to last year, but end users suggest there has been a good draw down of available butter stocks. Bulk butter pricing in the West this week is 2 cent under market to 2 cents above, based on the CME with various time frames and averages used.

ORGANIC DAIRY - RETAIL OVERVIEW

Total conventional dairy advertisements declined 4% while organic dairy ads increased 22%. Seasonal ads for quarts of egg nog have appeared, with an average price of $2.78. The national average price for 1-pound conventional butter is $3.31, up 33 cents from last week. Organic butter averaged $4.71, an organic price premium of $1.40. The US advertised price for 8-ounce conventional cheese blocks averaged $2.25, down 7 cents from last week.Ads for conventional 8-ounce shred cheese averaged $2.22, down 4 cents from last week. The collec-tive number of conventional cheese ads increased 22%. This week, the difference between the average weighted price for organic half gallon milk, $4.01, and the average weighted price for conventional half gallon milk, $2.23, resulted in an organic price premium of $1.78, down 24 cents from last week. Organic milk advertisements decreased 54%, while ads for conventional milk increased 40%. Conventional yogurt ads declined 14% this week but organic yogurt ads increased 23%. The average price for 4- to 6-ounce conventional Greek yogurt was $0.99, while 4- to 6-ounce organic Greek yogurt averaged $1.31, an organic price premium of $.32.

National Weighted Retail Avg Price: Cottage Cheese 16 oz: $3.07Cheese 8 oz block: $6.99Sour Cream 16 oz: $3.17Yogurt 4-6 oz: $1.29Greek Yogurt 4-6 oz: $1.28

Greek Yogurt 32 oz: $3.24Milk UHT 8 oz: $1.00Milk gallon: NAMilk ½ gallon: $4.01Ice Cream 48-64 oz: $4.99Butter 1 lb: $4.71

RETAIL PRICES - CONVENTIONAL DAIRY - OCTOBER 28Commodity

Butter 1#

Cheese 8 oz block

Cheese 1# block

Cheese 2# block

Cheese 8 oz shred

Cheese 1# shred

Cottage Cheese

Cream Cheese

Ice Cream 48-64 oz

Egg Nog quart

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

3.31 3.02 3.44 NA 2.83 3.59 NA

2.25 2.18 2.49 1.93 1.77 2.25 1.39

4.85 4.71 4.99 3.88 NA NA NA

6.76 NA NA NA 6.07 7.24 6.18

2.22 2.30 2.49 2.02 1.97 2.05 1.79

4.89 NA NA 3.88 NA NA NA

2.05 2.18 2.17 2.00 1.69 1.84 1.63

2.12 1.92 2.28 2.09 1.92 2.15 1.50

3.23 2.89 2.93 3.22 3.58 3.49 3.21

2.78 NA 3.00 NA NA 2.66 NA

2.65 3.49 2.78 NA 2.81 1.99 1.99

2.09 NA NA NA 1.91 NA NA

2.54 NA 3.99 2.99 2.12 2.40 1.99

1.76 1.78 1.90 1.37 1.69 1.84 1.50

.99 1.02 1.02 .97 .94 .97 .91

4.06 4.28 NA 3.53 NA 4.99 NA

.52 .60 .46 .55 .55 .49 .53

2.76 2.60 3.78 1.99 1.99 2.99 2.50

Butter 1# 3.31 3.02 3.44 NA 2.83 3.59 NA

Cheese 1# block 4.85 4.71 4.99 3.88 NA NA NA

Cheese 8 oz shred 2.22 2.30 2.49 2.02 1.97 2.05 1.79

Cottage Cheese 2.05 2.18 2.17 2.00 1.69 1.84 1.63

Ice Cream 48-64 oz 3.23 2.89 2.93 3.22 3.58 3.49 3.21

Flavored Milk gallon 2.65 3.49 2.78 NA 2.81 1.99 1.99

Milk gallon 2.54 NA 3.99 2.99 2.12 2.40 1.99

Yogurt (Greek) 4-6 oz .99 1.02 1.02 .97 .94 .97 .91

Yogurt 4-6 oz .52 .60 .46 .55 .55 .49 .53

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: Prices for low/medium nonfat dry milk (NDM) are lower through the mostly series, in an unsettled market. Aside from price fluctuations, the market is seeing a significant difference in the trade prices of low/medium heat NDM. Some buyers/sellers point to the varying age of product currently moving in the market as the basis of those differences. Buyer interest is mostly light to moderate, as reluctance is displayed in making block purchases and contentment with acquir-ing individual loads. NDM production is expected to rally in the near term, but for now, seasonal Class pulls weigh on milk supplies. Prices for high heat NDM are mixed. High heat stocks are tight. How-ever, product is adequate for near term commitments.

NDM - EAST: Low/medium NDM prices saw marginal declines due to f.o.b. spot purchases. Overall, the region’s produc-tion rates are steady to lower. Both main-tenance programs and limited condensed skim availability push against output rates. Spot load availability is scarce in balanc-ing with little to no drying occurring at some NDM facilities. Following pressure from low/medium NDM markets, high heat

nonfat dry milk prices moved lower at the bottom of the range, but moved higher at the top as some buyers seek product from specific manufacturers. Most inventories are low on product. Buyers purchases, based on baking interest, are moderate.

NDM - WEST: Western low/medium heat NDM f.o.b. spot prices are mixed on the range and the mostly series. Manu-facturers and buyers agree that sales activity in the spot market has been light throughout the week as most sales have been based on contracts. The market tone is uncertain. Buyers/end users are putting pressure on manufacturers, hold-ing purchases and taking a ‘wait and see’ approach, anticipating lower prices. However, processors are optimistic about future prices. Low/medium heat NDM inventories from recent production are readily available. Also, some processors are trying to clear old stocks with some age at prices close to the bottom of the range. Production is ongoing as moderate to heavy condensed skim volumes con-tinue clearing into dryers. High heat prices are higher on the bottom of the range, but steady on the top. Production is sporadic, mostly based on contractual needs.

DRY DAIRY PRODUCTS - OCTOBER 27


CME CASH PRICES - OCTOBER 24 - 28, 2016Visit www.cheesereporter.com for daily prices

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

MONDAY $1.5600 $1.6400 $1.7800 $0.8775 October 24 (-1) (-1) (+2) (-¼)2TUESDAY $1.5600 $1.6375 $1.8300 $0.8700 October 25 (NC) (-¼) (+5) (-¾)

WEDNESDAY $1.5575 $1.6550 $1.8850 $0.8650 October 26 (-¼) (+1¾) (+5½) (-½)

THURSDAY $1.5500 $1.6550 $1.9050 $0.8550 October 27 (-¾) (NC) (+2) (-1)

FRIDAY $1.5975 $1.7300 $1.9250 $0.8550 October 28 (+4¾) (+7½) (+2) (NC)

Week’s AVG $1.5650 $1.6635 $1.8650 $0.8645 Change (-0.0020) (+0.0105) (+0.1015) (-0.0150)

Last Week’s $1.5670 $1.6530 $1.7636 $0.8795AVG

2015 AVG $1.5590 $1.6085 $2.6240 $0.8250 Same Week

MARKET OPINION - CHEESE REPORTER

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

‘03 9.78 9.66 9.11 9.73 9.71 9.75 11.78 13.80 14.30 14.39 13.47 11.87‘04 11.61 11.89 14.49 19.66 20.58 17.68 14.85 14.04 14.72 14.16 14.89 16.14‘05 14.14 14.70 14.08 14.61 13.77 13.92 14.35 13.60 14.30 14.35 13.35 13.37‘06 13.39 12.20 11.11 10.93 10.83 11.29 10.92 11.06 12.29 12.32 12.84 13.47‘07 13.56 14.18 15.09 16.09 17.60 20.17 21.38 19.83 20.07 18.70 19.22 20.60‘08 19.32 17.03 18.00 16.76 18.18 20.25 18.24 17.32 16.82 17.06 15.51 15.28‘09 10.78 9.31 10.44 10.78 9.84 9.97 9.97 11.20 12.11 12.82 14.08 14.98‘10 14.50 14.28 12.78 12.92 13.38 13.62 13.74 15.18 16.26 16.94 15.44 13.83‘11 13.48 17.00 19.40 16.87 16.52 19.11 21.39 21.67 19.07 18.03 19.07 18.77‘12 17.05 16.06 15.72 15.72 15.23 15.63 16.68 17.73 19.00 21.02 20.83 18.66‘13 18.14 17.25 16.93 17.59 18.52 18.02 17.38 17.91 18.14 18.22 18.83 18.95‘14 21.15 23.35 23.33 24.31 22.57 21.36 21.60 22.25 24.60 23.82 21.94 17.82‘15 16.18 15.46 15.56 15.81 16.19 16.72 16.33 16.27 15.82 15.46 15.30 14.44 ‘16 13.72 13.80 13.74 13.63 12.76 13.22 15.24 16.91 16.39

WHEY MARKETS - OCTOBER 22 - 28, 2016RELEASE DATE - OCTOBER 27, 2016

Animal Feed Whey—Central: Milk Replacer: .2200(+1) – .3000 (+½)

Buttermilk Powder: Central & East: .8400 (-2) – .9250 (+1½) West: .8000 (NC) – .9200 (NC) Mostly: .8500 (+1) – .8700 (NC)

Casein: Rennet: $2.9900 (NC) – $3.0500 (NC) Casein: Acid: $3.0200 (NC) – $3.0700 (NC)

Dry Whey Powder—Central (Edible): Nonhygroscopic: .2600 (NC) – .4100 (NC) Mostly: .3050 (NC) – .3650 (+1½)

Dry Whey–West (Edible): Nonhygroscopic: .3200 (+1) – .4200 (NC) Mostly: .3400 (+1) – .3900 (+1) Dry Whey—NE: .3400 (+2) – .3925 (+¾)

Lactose—Central and West: Edible: .2700 (-1) – .4800 (NC) Mostly: .3300 (+1) – .3700 (NC) Nonfat Dry Milk —Central & East: Low/Medium Heat: .8650 (-¾) – .9925 (-¾) Mostly: .8775(-2¼) – .9400 (-1) High Heat: 1.0250 (-2) - 1.1500 (+5) Nonfat Dry Milk —Western: Low/Medium Heat: .8100 (-¾) – .9900 (-½) Mostly: .9000 (NC) –.9500 (-½) High Heat: .1.0200 (+3) – 1.1050 (NC)

California Weighted Average NFDM: Price Total Sales October 21 $0.8907 5,479,051 October 14 $0.8993 8,063,329

Whey Protein Concentrate—Central and West: Edible 34% Protein: .6300 (NC) – .9350 (+6) Mostly: .7300 (NC) – .8300 (NC)

Whole Milk—National: 1.2000 (NC) – 1.4500 (+7)

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

Cheese Comment: Monday’s block market activity was limited to an uncovered offer of 1 car at $1.6400, which lowered the price. On Tuesday, 2 cars of blocks were sold on offers at $1.6375, which reduced the price. Three cars of blocks were sold Wednesday, all on bids at $1.6550, which raised the price. Thursday’s block market activity was limited to an unfilled bid for 1 car at $1.6550, which left the price unchanged. Friday’s block market activity was limited to an unfilled bid for 1 car at $1.7300, which raised the price. The barrel price declined Monday on an offer-based sale of 1 car at $1.5600, fell Wednesday on an offer-based sale of 1 car at $1.5575, declined Thursday on an uncovered offer of 1 car at $1.5500, then increased Friday on an offer-based sale of 1 car at $1.5975.

Butter Comment: The butter price increased Monday on an offer-based sale of 1 car at $1.7800, rose Tuesday on an unfilled bid for 2 cars at $1.8300 (following the sale of 20 cars of butter), increased Wednesday on a bid-based sale of 1 car at $1.8850, rose Thursday on an offer-based sale of 1 car at $1.9050, and increased Friday on unfilled bids for 2 cars at $1.9250.

For more information, circle # 33 on the Reader Response Card on p. 18

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USDA Awards Contracts For 86.3 Million Pounds Of Natural American Cheese For Delivery During 2017Kansas City, MO—USDA’s Agri-cultural Marketing Service (AMS) announced the awarding of con-tracts for a total of 86,275,200 pounds of natural American cheese for delivery during 2017.

The purchases, which are in support of USDA/domestic food distribution programs, included 68,013,600 pounds of natural American cheese in 500-pound bar-rels, 9,907,200 pounds of reduced fat shredded Cheddar, 6/5-pound generic bag; 4,294,000 pounds of Cheddar 40-pound generic blocks; and 4,070,400 pounds of Cheddar shredded 6/5-pound generic bag.

A maximum of 1,689,600 pounds of Cheddar reduced fat shredded 6/5-pound bag was not awarded due to offeror(s) capacity constraints. USDA said it reserves the right to solicit for this capacity at a later date.

Purchase awards are as follows; the purchase price for each deliv-ery period is the accepted differen-tial price per pound indicated plus the applicable previous month’s average of the CME cash market price for either blocks or barrels:

Associated Milk Producers, Inc.: 27,580,800 pounds of 500-pound barrels at 21.5 to 27.0 cents per pound; and 76,800 pounds of Cheddar shredded 6/5-pound generic bag at 23.0 to 27.0 cents per pound.

Bongards’ Creameries: 19,176,000 pounds of 500-pound barrels at 24.49 to 29.99 cents per pound.

Dairy Farmers of America: 1,152,000 pounds of Cheddar shredded 6/5-pound generic bag at 24.25 to 31.5 cents per pound.

Land O’Lakes: 19,012,800 pounds of 500-pound barrels at 27.68 to 29.48 cents per pound; and 1,183,200 pounds of Cheddar 40-pound generic blodks at 24.11 to 32.54 cents per pound.

Land O’Lakes: 1,193,200 pounds of 500-pound barrels at 25.91 to 29.63 cents per pound.

Masters Gallery Foods: 9,907,200 pounds of reduced fat Cheddar shredded 6/5-pound generic bags at 20.99 to 29.75 cents per pound; 2,841,600 pounds of Cheddar shredded 6/5-pound generic bag at 22.41 to 31.33 cents per pound; and 3,100,800 pounds of 40-pound generic Cheddar blocks at 26.95 to 36.39 cents per pound.

Masters Gallery Foods: 1,060,800 pounds of 500-pound barrels at 26.04 to 29.72 cents per pound.

No further offers under this invitation will be considered.

Documents

W o r l d ' s DairyI t h W S l y CHEESE REPORTER Issues/2016/October 28, 2016.pdf · 2016-10-28 · FDA Outlines Sodium Reduction Targets To ACS Members; Faces Industry Opposition