W o r l d ' s DairyI W S l y CHEESE REPORTER 9, 2018.pdf · cheese importers in the US. The company imports a product line from more than 20 different countries. ANCO sources directly

Average Milkfat Content Of US Milk Supply Reached A Record High 3.83% In 2017

Serv

ing

theWorld's Dairy Industry W

eekly

Since 1876

CHEESE REPORTER Vol. 142, No. 34 • Friday, February 9, 2018 • Madison, Wisconsin

US Dairy Exports Rose 15% In 2017; Dairy Imports Dropped 4%

pounds, up 16 percent; Australia, 66.2 million pounds, up 93 percent; China, 31.5 million pounds, up 45 percent; Canada, 25.9 million pounds, down 11 percent; Chile, 19.8 million pounds, up 4 percent; Saudi Arabia, 18 million pounds, up 22 percent; and Taiwan, 17.7 million pounds, up 9 percent.

Nonfat dry milk exports during 2017 totaled a record 1.337 billion pounds, up 2 percent from 2016’s record.

US exports of nonfat dry milk have now topped 1.2 billion pounds for five straight years. Just during December, NDM exports totaled 133.4 million pounds, up 29 percent from December 2016.

Leading markets for US NDM exports during 2017, on a vol-ume basis, with comparisons to 2016, were: Mexico, 609.2 million pounds, up 1 percent; Philippines, 162 million pounds, down 10 per-cent; China, 76.7 million pounds, up 90 percent; Indonesia, 70.8 million pounds, down 40 percent; Malaysia, 61.1 million pounds, up 9 percent; and Pakistan, 51.2 mil-lion pounds up 3 percent.

• See Dairy Trade In 2017, p. 6

Cheese Exports Up 19% In 2017, Cheese Imports Down 11%Washington—US dairy exports in 2017 were valued at $5.383 billion, up 15 percent, or $683.5 million, from 2016, according to figures released this week by USDA’s For-eign Agricultural Service (FAS).

That was the highest level for US dairy exports since 2014, when they reached a record $7.1 billion.

Just during December, US dairy exports were valued at $464.4 mil-lion, up 5 percent from December 2016.

US dairy imports during 2017 were valued at $2.836 billion, down 4 percent, or $121.4 million, from 2016. That was the second consecutive decline in the value of US dairy imports, after they reached a record $3.02 billion in 2015.

Just during December, US dairy imports were valued at $265.2 mil-lion, down 4 percent from Decem-ber 2016.

Leading markets for US dairy exports in 2017, on a value basis, with comparisons to 2016, were:

Mexico, $1.312 billion, up 8 per-cent; Canada, $636.4 million, up 1 percent; China, $577.1 million, up 49 percent; Japan, $291 mil-lion, up 41 percent; South Korea, $279.8 million, up 21 percent; Philippines, $243.3 million, up 7 percent; Australia, $185.2 million, up 70 percent; Indonesia, $133.1 million, down 16 percent; and Vietnam, $112.4 million, down 6 percent.

US cheese exports during 2017 totaled 750.4 million pounds, up 19 percent, or almost 120 mil-lion pounds, from 2016 and the second-highest level ever, trailing only 2014’s record of 810 million pounds. The value of US cheese exports in 2017, $1.446 billion, was up 21 percent from 2016.

Just during December, US cheese exports totaled 60.1 mil-lion pounds, down 4 percent from December 2016.

Leading markets for US cheese exports during 2017, on a vol-ume basis, with comparisons to 2016, were: Mexico, 212.1 mil-lion pounds, up 7 percent; South Korea, 115.1 million pounds, up 23 percent; Japan, 71.2 million

In December, Average Milkfat Content Was 3.97%, Tying A RecordWashington—The average milk-fat content of the US milk sup-ply last year was a record-high 3.83 percent, according to fig-ures recently released by USDA’s National Agricultural Statistics Service (NASS).

The previous record for the milkfat content of the US milk supply was 3.79 percent, set in 2016.

Since 2000, the average milk-fat content of the US milk sup-ply has ranged from a low of 3.66 percent in both 2005 and in 2010 to last year’s record high.

The year 2010 also represented the last year in which the average milkfat content of the US milk supply was under 3.7. It was 3.71

percent in 2011, 3.72 percent in 2012, 3.76 percent in 2013, 3.74 percent in 2014, and 3.75 percent in 2015.

The NASS report shows tha-the years 2011 through 2017 are also the only years in recorded history in which the average milkfat content of the US milk supply topped 3.7 percent.

To put this in some historical perspective, over the 1980-1999 period, the milkfat content of the US milk supply ranged from a low of 3.64 perent in 1981 to a high of 3.69 percent in 1996.

Prior to this century, the milk-fat content of the US milk supply in the 1990s and 1980s had aver-aged as follows:

1990s: 3.67 percent, with a low of 3.65 percent in 1990 and a high of 3.69 percent in 1996.

• See Record Milkfat, p. 8 3.7

3.8

3.9

4

2009 2011 2013 205 2017

Average Fat Test for AllUS Milk: December 2008-2017Percent Milkfat

Atalanta Corporation Acquires ANCO Fine Cheese From Schratter Foods, Inc.Elizabeth, NJ—Atalanta Corpo-ration, a leading importer of spe-cialty cheese and other specialty foods, has acquired ANCO Fine Cheese, a business unit from Sch-ratter Foods, Inc.

The All Nations Cheese Orga-nization (ANCO) is one of the largest and broadest specialty cheese importers in the US.

The company imports a product line from more than 20 different countries.

ANCO sources directly from cheese plants, cuts and wraps when necessary and can distribute its cheeses anywhere in the US from its four distribution centers.

“For decades, ANCO has been one of the most established import

• See Atalanta Acquires, p. 20

USDA Delays Final Decision On California Federal Order; CDFA Denies Request For Emergency HearingWashington—The USDA’s Agri-cultural Marketing Service (AMS) this week announced a delay in the California federal milk mar-keting order rulemaking proceed-ing and its intention to await a US Supreme Court decision on a related legal matter prior to pro-ceeding further with the California rulemaking.

USDA had issued a decision recommending the establishment of a California federal order in Feb-ruary 2017. A final decision was expected in the near future.

In explaining its delay in issuing a final decision, AMS explained that, on Nov. 29, 2017, the Solici-tor General of the US submitted a brief to the US Supreme Court in Lucia v. Securities and Exchange Commission. The government’s position is that administrative law judges (ALJs) are “inferior officers” of the US subject to the Appoint-ments Clause of Article II of the Constitution.

The Solicitor General urged the Supreme Court to grant a writ of certiorari and resolve a circuit split concerning the constitutional requirements for ALJ appoint-ments. On Jan. 12, 2018, the court did so.

At all times material to the hearing for the prospective prom-ulgation of a federal order for California, which was held in September through November of

• See CA Order Delayed, p. 14

CHEESE REPORTERPage 2 February 9, 2018

Cheese Reporter Publishing Co. Inc. © 2017

2810 Crossroads Drive, Suite 3000Madison, WI 53718-7972

(608) 246-8430 • Fax (608) 246-8431http://www.cheesereporter.com

DICK GROVES

Publisher/Editore-mail: [email protected]

608-316-3791MOIRA CROWLEY

Specialty Cheese Editore-mail: [email protected]

608-316-3793

KEVIN THOME

Advertising & Marketing Directore-mail: [email protected]

608-316-3792

BETTY MERKES

Classifieds/Circulation Managere-mail: [email protected]

608-316-3790

REGULAR CONTRIBUTORS:Jim Brunker, Bob Cropp, Neville McNaughton,

Dan Strongin, John UmhoeferYou can e-mail our contributors at: [email protected]

The Cheese Reporter is the official publication of the following associations:

California Cheese & Butter AssociationLisa Waters,

1011 Pebble Beach Dr, Clayton, CA 94517

Central Wisconsin Cheesemakers’ and Buttermakers’ Association

Janice Norwood [email protected]

Cheese Importers Association of America 204 E St. NE, Washington, DC 20002

Eastern Wisconsin Cheesemakers’ and Buttermakers’ Association

Barb Henning, Henning’s Cheese21812 Ucker Road, Kiel, WI 53042

International Dairy-Deli-Bakery Association636 Science Drive, Madison, WI 53711

Missouri Butter & Cheese InstituteTerry S. Long, 19107 Factory Creek Road,

Jamestown, MO 65046

Nebraska Cheese AssociationEd Price, Fremont, NE 68025

New York State Cheese Manufacturer’s Assn Kathyrn Boor, 11 Stocking Hall,

Cornell University, Ithaca, NY 14853

North Central Cheese Industries AssnLloyd Metzger, SDSU, Box 2104,

Brookings, SD 57007

North Dakota Cheese Makers’ AssnChuck Knetter, Medina, ND 58467

Ohio Swiss Cheese AssociationDarlene Miller, P.O. Box 445,

Sugar Creek, OH 44681

South Dakota State Dairy AssociationHoward Bonnemann, SDSU, Box 2104,

Brookings, SD 57007

Southwestern Wisconsin Cheese Makers’ Association

Myron Olson, Chalet Cheese Coop, N4858 Cty Hwy N, Monroe, WI 53566

Wisconsin Association for Food ProtectionBob Wills

PO Box 620705, Middleton WI 53562

Wisconsin Cheese Makers’ AssociationJohn Umhoefer, 5117 W. Terrace Dr.,

Suite 402, Madison, WI 53718

Wisconsin Dairy Products AssociationBrad Legreid, 8383 Greenway Blvd.,

Middleton, WI 53562

CHEESE REPORTER (Publication Number: ISSN 0009-2142). Published weekly by Cheese Reporter Publishing Co. Inc., 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-7972; Phone: (608) 246-8430; Fax: (608) 246-8431. Subscriptions: $140.00 per year in USA; Canada and Mexico: $195.00 per year; other foreign subscribers, please write for rates. Advertising and Editorial material are copyrighted material. Any use without publisher’s consent is prohibited. Cheese Reporter does not endorse the products of any advertiser or any editorial material. POSTMASTER: If undeliverable, Form 3579 requested. Periodicals postage paid at Madison, WI. Address all correspondence to: Cheese Reporter, 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-7972

That makes it at least somewhat less likely that Canada will give the US much more access to its cheese and dairy markets under a renegoti-ated NAFTA.

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

D I C K G R O V E S

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

EDITORIAL COMMENT

Storm Clouds On The US Dairy Export HorizonFor the most part, the last several years have been pretty good years for the US dairy industry from an export standpoint. Whether these positive trends continue in the future remains to be seen.

As reported on our front page this week, US dairy exports in 2017 were valued at $5.383 billion, up 15 percent from 2016 and the highest level since 2014’s record $7.1 billion. Considering that US dairy exports as recently as 2003 were under $1 billion in value, last year’s export level should be con-sidered a great success story.

But, when looking over the list of leading US dairy export markets, we can’t help but feel more than a bit concerned about what the future holds for US dairy exports in general and exports of some key products in particular.

Let’s start right at the top, with Mexico. That country has been the leading US dairy export market for years, and last year marked the sev-enth consecutive year in which US dairy exports to Mexico topped $1 billion in value. Mexico is also the leading destination for US exports of cheese and nonfat dry milk, to mention just two products.

But there are at least three reasons to be concerned about the future of US dairy exports to Mexico. First, the US, Mexico and Canada are currently renegotiating the North American Free Trade Agreement, but there is some spec-ulation that the talks will fail and the US will end up withdrawing from NAFTA.

Without NAFTA, the duty-free access the US enjoys into Mexico could evaporate and be replaced by WTO MFN (most-favored nation) tariff levels, according to the National Milk Producers Federation and US Dairy Export Council. This would “dramati-cally undermine a core advantage” of US suppliers as the only major dairy supplier to Mexico currently benefitting from free trade.

Second, Mexico and the Euro-pean Union are currently work-ing on an update to their trade

agreement, and according to the European Commission, the EU and Mexico remain strongly com-mitted to achieving an ambitious and balanced deal. Eucolait (the European Association of Dairy Trade) sees significant potential to increase EU dairy exports to Mex-ico if tariff protection is removed.

Third, Mexico was part of the original Trans-Pacific Part-nership agreement (as was the US), and remains part of the recently concluded Comprehen-sive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP). So are New Zealand and Australia, two key US dairy trade competitors.

Malcolm Bailey, chairman of the Dairy Companies Association of New Zealand, said the CPTPP “does not go as far as we would like in terms of dairy access,” but adds that there are “some useful gains in markets such as Japan and Mexico.” Could New Zealand’s gains become the US dairy indus-try’s losses?

The number two market for US dairy exports over the last three years has been Canada, so the first and third points noted earlier (about the renegotiated NAFTA and the CPTPP) apply. Also, Can-ada and the EU are implementing their Comprehensive Economic and Trade Agreement, which gives the EU considerably more access to the Canadian cheese market (among other things).

That makes it at least somewhat less likely that Canada will give the US much more access to its cheese and dairy markets under a renegotiated NAFTA.

Ranking third as a US dairy export market last year was China. Last year was the third time in five years that US dairy exports to China topped half a billion dollars in value.

Last month, President Trump approved recommendations to impose safeguard tariffs on solar cells and modules imported from China. According to a recent report from the Congressional

Research Service, which pro-vides nonpartisan policy and legal analysis to Congress, the bilateral economic relationship between the US and China has “become increasingly complex and often fraught with tension.”

Meanwhile, New Zealand entered into a free trade agree-ment with China back in 2008, and recently the two launched talks to upgrade that FTA. For the year ended March 2017, China accounted for 24 percent of New Zealand’s dairy exports by value, and China was New Zealand’s number one market for cheese and whole milk powder exports, among other products.

What might a renegotiated New Zealand-China FTA do to US dairy exports to China?

Japan ranked fourth as a US dairy export market last year. Japan is one of the leading dairy import-ers in the world, and is also part of the recently concluded CPTPP. As noted earlier, DCANZ sees some useful dairy access gains in Japan as a result of the CPTPP.

Meanwhile, the EU and Japan last year reached an agreement in principle on an Economic Partnership Agreement. Under that pact, which hasn’t yet been implemented, for cheese and dairy products, significant market access improvements were agreed for the EU’s core export products to Japan. For example, the agreement will provide for full liberalization of tariffs for hard cheeses (Cheddar, Gouda, Parmesan, etc.). And a tar-iff-rate quota will grant meaningful access for other cheeses, according to the European Commission.

We could go on and on here about the potential problems that could arise with key US dairy export markets. Just to cite one more example, Chile, Singapore, Malaysia and Vietnam are all among the top 20 US dairy export markets, and they are also included in the recently concluded CPTPP.

Last year was another impressive year for US dairy exports. But the road ahead appears bumpier.

CHEESE REPORTERFebruary 9, 2018 Page 3

For more information, circle #1 on the Reader Response Card on p. 18

Global Dairy Trade Price Index Rises 5.9%; All Seven Dairy Products Traded Post IncreasesFAO Dairy Price Index Fall 2.4% In JanuaryAuckland, New Zealand—The price index on this week’s semi-monthly Global Dairy Trade dairy commodity auction increased 5.9 percent from the previous auction, held three weeks ago.

That marked the third consecu-tive increase in the GDT price index. By contrast, during the fourth quarter of 2017, the GDT price index declined five times and only increased once.

In this week’s GDT auction, which featured 188 participating bidders and 126 winning bidders, prices were higher for Cheddar cheese, skim milk powder, whole milk powder, butter, anhydrous milkfat, rennet casein and butter-milk powder. An average price for lactose was not available.

Results from this week’s GDT auction, with comparisons to the last auction, were as follows:

Cheddar cheese: The average winning price was $3,739 per met-ric ton ($1.70 per pound), up 7.2 percent. Average winning prices were: Contract 1 (March), $3,955 per ton, up 16.5 percent; Contract 2 (April), $3,746 per ton, up 8.1 percent; Contract 3 (May), $37,29 per ton, up 6.6 percent; Contract 4 (June), $3,695 per ton, up 5.7 percent; and Contract 5 (July), $3,695 per ton, up 1.9 percent.

Skim milk powder: The aver-age winning price was $1,932 per ton (87.6 cents per pound), up 7.2 percent. Average winning prices were: Contract 1, $2,239 per ton, up 19.1 percent; Contract 2, $1,878 per ton, up 6.8 percent; Contract 3, $1,986 per ton, up 8.3 percent; Contract 4, $1,990 per ton, up 3.4 percent; and Contract 5, $2,003 per ton, up 6.4 percent.

Whole milk powder: The aver-age winning price was $3,226 per ton ($1.46 per pound), up 7.6 percent. Average winning prices were: Contract 1, $3,228 per ton, up 9.1 percent; Contract 2, $3,270 per ton, up 9.2 percent; Contract 3, $3,192 per ton, up 6.2 percent; Contract 4, $3,193 per ton, up 6.2 percent; and Contract 5, $3,181 per ton, up 6 percent.

Butter: The average winning price was $5,277 per ton ($2.39 per pound), up 7.9 percent. Aver-age winning prices were: Contract 1, $5,340 per ton, up 6.3 percent; Contract 2, $5,275 per ton, up 8.3 percent; Contract 3, $5,265 per ton, up 7.1 percent; Contract 4, $5,270 per ton, up 8 percent; and Contract 5, $5,285 per ton, up 8.8.

Anhydrous milkfat: The aver-age winning price was $6,581 per ton ($2.98 per pound), up 0.5 percent. Average winning prices were: Contract 1, $6,685 per ton, up 0.9 percent; Contract 2, $6,587

up 8.4 percent. Average winning prices were: Contract 1, $2,155 per ton, up 10.5 percent; Contract 2, $1,987 per ton, up 8.6 percent; Contract 3, $2,090 per ton, up 7.7 percent; Contract 4, $2,140 per ton, up 9.7 percent; and Contract 5, $2,075 per ton, up 5.6 percent.

In other international food and dairy product price developments, the US Food and Agriculture Orga-nization’s (FAO) Food Price Index averaged 169.5 points in January, almost unchanged from December 2017 but almost 3 percent below January 2017. Dairy values were generally weaker and meat quota-tions remained steady.

The FAO Dairy Price Index averaged 179.9 points in January, down 2.4 percent, or 4.5 points, from December 2017 and its low-est level since September 2016,

when it was 176.0. The FAO Dairy Price Index has now declined four straight months after reaching a 2017 high of 224.2 last October.

During January, international price quotations for cheese and butter declined, while those for skim milk powder and whole milk powder increased. Abundant milk supplies in the Northern Hemi-sphere and Australia represented a factor that heavily influenced global dairy prices, including the declines in cheese and butter prices, the FAO explained.

However, the possibility for seasonal milk production in New Zealand to be lower than expected lent support to whole milk powder prices.

Skim milk powder values also increased, mostly due to strong import demand.

per ton, up 0.1 percent; Contract 3, $6,536 per ton,, up 0.2 percent; Contract 4, $6,570 per ton, up 1.2 percent; and Contract 5, $6,564 per ton, up 1.4 percent.

Rennet casein: The average winning price was $4,943 per ton ($2.24 per pound), up 5 percent. Average winning prices were: Contract 1, $4,933 per ton, up 5.9 percent; Contract 2, $4,930 per ton, up 6.9 percent; Contract 3, $4,991 per ton, up 3.8 percent; Contract 4, $5,008 per ton, up 5.6 percent; and Contract 5, $4,846 per ton, up 1.2 percent.

Buttermilk powder: The aver-age winning price was $2,039 per ton (92.5 cents per pound),


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

On Empty Shelves and Other Follies

Dan StronginASQ CMQ/OEUncorporate Consultant

from our archives

50 YEARS AGOFeb. 9, 1968: Madison—The Federal Department of Health, Education and Welfare this week confirmed that Madison, WI, will be the site of a new FDA lab. The facility, which will cost between $16 to $20 million, had also been considered to be located in Belleville, MD.

Madison—Richard Brueckner has been designated chief of the Dairy & Poultry Market News Branch of USDA’s Consumer & Marketing Service. Brueckner succeeds Harry Rust, who has retired after almost 40 years of government service.

25 YEARS AGOFeb. 12, 1993: Washington—Floyd Gaibler, executive direc-tor of the National Cheese Institute and vice president of the International Dairy Foods Association, will be leaving his positions effective Feb. 15, 1993, to pursue other interests. Prior to joining NCI in 1988, Gaibler had been executive assistant to US Secretary of Agriculture Richard Lyng.

Madison—Some time in the next few years – perhaps as soon as this year – there will be head-lines stating that California has surpassed Wisconsin in volume of milk production for a given month. That came close to happening in November 1992, when the Wisconsin total was 1.845 billion pounds of milk to California’s 1.820 billion – less than one half-day’s production.

10 YEARS AGOFeb. 8, 2008: Sacramento, CA—A trial court did not err in failing to hold the California dairy producer assessment pro-gram is unconstitutional on the ground that the Real California Cheese certification seal com-ponent economically compels the Gallo Cattle Company to voice a message with which it disagrees, a California appeals court has ruled.

Hollandtown, WI—Arla Foods plans to invest roughly $15 million to expand and upgrade its cheese manufacturing facility here, with a goal to double production capac-ity. The project will begin this year and will extend through 2009. The plant will be extended to including a brining facility, likely to come from the now defunct Aars dairy in Denmark, WI.

agropuringredients.com | [email protected] Enterprise Avenue | La Crosse, Wisconsin 54603

©2018 Agropur MSI LLC

Superior ingredients. Innovative solutions.

Capstone® Anti-caking agents

Capstone® anti-caking agents help food processors mitigate the high cost and price

variability of key ingredients. State-of-the-art ingredients technologies assure product

integrity and quality for products. Recommended for use in shredded and crumbled cheeses.

Last month the Business Insider published a story about Whole Foods shelves being empty. Every-one was quick to blame Amazon, but as it turns out, it was caused by the unintended and unexpected effects of adopting a new approach to product and shelf management, according to an article posted on the website of Supermarket News, on January 23rd.

In that post, the writer did her best to explain what this new system was. Unless you are a pro-cess wonk, it can be hard to get it right. And, once again, her sources “blame” Toyota, and their process for the delivery of parts to the assembly line called “Just in Time.”

People in other industries have been obsessively copying Toyota for years, without really under-standing what they do, so why not Whole Foods ( and, it seems, Tar-get)? Whole Foods called it their “order to shelf” initiative.

It’s easy to see why not having to pay for or maintain any inven-tory would be seductive. After all, the suppliers for Toyota seem to manage to deliver products just in time, within a few minutes of when they will be installed, clev-erly eliminating the necessity for Toyota to carry inventory, or pay for products until they’re used.

Another way to put this is Toy-ota has unloaded its risks onto the shoulders of their suppliers. Nice

trick, if you can get away with it. Many suppliers for Toyota, who deliver Just in Time, are small companies contracted to work for Toyota exclusively. Toyota has the muscle to require these suppliers follow their scheme.

Moreover, a parts supplier or an automobile factory are completely different from supermarkets and retail stores. Without going into the gory details, a supermarket deals directly with those fickle things we call consumers, and has more vari-ability and more products; thus, more chance for wiggly things to happen. Using an on-demand, or just in time system, requires some measure of predictability, and needs to take into account more than just what sold yesterday.

I can see it in my mind’s eye. A bunch of MBAs at the corpo-rate offices all excited about the chance to apply the statistics that they learned badly in college, (not realizing that the kind of statistics that they learned in college is use-less for prediction.)

Which is not to say that the goal of lowering inventory is not a valu-able goal. But, using your buying muscle to force your suppliers to take on your risks without proper compensation, is a bit “gangsta” in my opinion. In addition to lack-ing the leverage Toyota has over suppliers who only work for them, supermarkets like Whole Foods have suppliers who have other cus-tomers.

So there is a kind of hubris involved in the application of this program to a completely different

industry than what it was designed for. Did they consult with expe-rienced experts in Supply Chain Management? There are people who have the proper training, who do know analytic statistics, that could have devised a system that would give them a more manage-able inventory without the dan-gerous unintended consequences. Customers are fickle and have little patience. They will abandon you for something as little as the price of a piece of Brie was marked wrong; imagine empty shelves.

This is a problem of the age of Google, lots of information, little knowledge and experience behind it. A good solution could be devel-oped either using the age-old sys-tem of buffering supply against the variations in daily and weekly demand, what used to be called and on hand build to system, or a par system. (I was brought up on it.)

Or, by using a much more sophisticated and incredibly more accurate system that would account for the variations in product move-ment over time, predicting within certain limits a range of potential ups and downs, ensuring many fewer products missing on the shelves and much less inventory to manage. In other words, more money in the pocket for manage-ment.

It seems like someone in upper management read an article or a discussion post on LinkedIn, and we’re dumb enough to apply with-out really having an understanding of what they were doing, or the common sense to test the thing in small ways first before rolling it out into the whole shebang. Another example of, as Bob Lutz wrote in Car Guys vs. Bean Counters, “Business Schools have produced

• See Strongin, p. 12


PlateCheckPlateCheck TM

Seeing is Believing

www.agcheattransfer.comEASTERN

10129 Piper Lane I Bristow, VA 20136703.257.1660 I 800.825.8820

WESTERN9109 SE 64th Ave. I Portland, OR 97206

503.774.7342 I 800.715.8820

CENTRAL8400 Lakeview Pkwy, Suite 700 I Pleasant Prairie, WI 53158

847.301.6890 I 888.489.8820

Quality Plates & Upgrades

Plate Heat Exchangers Over 40 models

PLATE HEAT EXCHANGERS PLATES & SERVICE

PlateCheck™ Inspections Exceeds every 3A annual

testing requirement

Building the Best,Servicing the Rest

Budget Bill Approved By Congress Includes Reforms To Dairy Margin Protection ProgramWashington—The House and Senate early today approved a two-year budget bill that includes several reforms to the Margin Pro-tection Program (MPP) for dairy producers.

Jim Mulhern, president and CEO of National Milk Producers Federation (NMPF), said today’s votes to pass a budget bill contain-ing “major improvements” to the dairy safety net are an “important victory” for dairy farmers.

The enhancements to the MPP, coupled with the expansion of additional risk management options, “are coming at a crucial time for our producers,” Mul-hern continued. “Farmers need insurance options that are both effective and affordable, and the disaster package helps deliver on that promise.”

According to NMPF, the MPP reforms included in the budget bill’s dairy package include: Raising the catastrophic cov-

erage level from $4.00 to $5.00 for the first tier of covered production for all dairy farmers. Adjusting the first tier of

covered production to include every dairy farmer’s first 5 million pounds of annual milk production (about 217 cows) instead of 4 mil-lion pounds, a recognition of the growth in herd sizes across the US. Reducing the premium rates,

effective immediately, for every producer’s first 5 million pounds of production, to better enable dairy farmers to afford the higher levels

of coverage that will provide more meaningful protection against low margins. Modifying the margin cal-

culation to a monthly (from bi-monthly) basis, to make the pro-gram more accurate and responsive to producers in difficult months. Waiving the annual $100

administrative fees for underserved farmers. Directing USDA to immedi-

ately reopen the program signup for 2018.

These provisions are based on a proposal that was approved by the Senate Appropriations Committee last summer on a bipartisan vote, Mulhern noted.

The budget bill also lifts the $20 million annual cap on all livestock insurance, including the Livestock Gross Margin (LGM) program. This will allow USDA to develop a wider variety of additional risk management tools that will be especially important for larger dairy producers and can comple-ment the MPP, NMPF said.

“Taken together, these changes will provide important risk man-agement tools for dairy farm operations of all sizes,” Mulhern continued.

Last March, Michael Dykes, president and CEO of the Inter-national Dairy Foods Association (IDFA), joined with NMPF to pres-ent the House Agriculture Com-mittee with their basic requests for the new farm bill, which included improving the safety net for dairy

farmers. The budget package worked out by a bipartisan group of congressional leaders this week “includes provisions that will do just that,” Dykes noted.

“This is the support that dairy farmers in Michigan and across the country have been waiting for” said US Sen. Debbie Stabenow (D-MI), the top Democrat on the Senate Agriculture Committee. “Thanks to our bipartisan efforts in the Senate, dairy farmers will get much-needed relief as they recover from tough economic times. I look forward to building on this progress in the 2018 farm bill.”

“Making these crucial invest-ments and key changes with immediate effect will help stave off setbacks for dairy farmers who are facing another difficult year without access to meaningful risk management protection,” said US Sen. Patrick Leahy (D-VT), the top Democrat on the Senate Appropriations Committee and also a member of the Senate Ag Committee.

“The dairy forecasts for this spring are deeply troubling,” Leahy continued. “From talking with dairy leaders in Vermont, I know that without immediate changes to protect farmers in these difficult times we will be facing a crisis situ-ation.”

Focus Shifts To 2018 Farm BillNMPF and IDFA are now shift-ing their focus to the 2018 farm bill. Mulhern noted that the added resources established by the bud-get bill’s fixes to the MPP and LGM program “help pave the way for final adjustments to the dairy

safety net for the next five years as Congress crafts a new farm bill.”

“Farmers of all operation types have

had to deal with a major economic

downturn over the past five years. We must not only continue to improve programs ... but the broader farm

economy.”

—Roger Johnson, National Farmers Union

The budget bill “sets us up to tackle the 2018 farm bill, due Sep-tember 30, efficiently and effec-tively,” Dykes said.

“Looking ahead to the farm bill, there is still much to be done,” said Roger Johnson, president of the National Farmers Union (NFU). “Farmers of all operation types have had to deal with a major eco-nomic downturn over the past five years. We must not only continue to improve programs for dairy and cotton, but the broader farm econ-omy.”

In order to educate the gen-eral public and to generate sup-port for a farm bill to be passed this year, NFU and Farmers Union state divisions have developed a digital campaign, complete with a new website, a farm bill video, animated short videos, weekly pro-motions and a petition.



18,000 Items. 900 Pages.Nelson-Jameson is your source for hard-to-�nd and specialty items—as well as products you use every day!

Request our FREE Buyer’s Guide today!

1-800-826-8302 • nelsonjameson.com

Dairy Trade In 2017(Continued from p. 1)

Dried whey exports during 2017 totaled 471.5 million pounds, up 11 percent from 2016 and the highest level since 2014, when they reached 504.5 million pounds. December exports of dried whey totaled 45 million pounds, up 9 percent from December 2016.

Leading markets for US dried whey exports in 2016, on a volume basis, with comparisons to 2016, were: China, 214 million pounds, up 41 percent; Canada, 41.2 mil-lion pounds, down 2 percent; Mex-ico, 33.8 million pounds, down 14; Philippines, 29.6 million pounds, up 6 percent; and Japan, 26.2 mil-lion pounds, up 12 percent.

Whey protein concentrate exports last year totaled a record 322 million pounds, up 2 percent from 2016’s record. December WPC exports totaled 33 mil-lion pounds, up 24 percent from December 2016.

Leading markets for US exports of WPC last year, on a volume basis, with comparisons to 2016, were: China, 133.5 million pounds, down 16 percent; Mexico, 57.8 million pounds, up 48 percent; Canada, 36.3 million pounds, up 10 percent; Philippines, 16.2 mil-lion pounds, up 67 percent; and Indonesia, 9.8 million pounds, down 2 percent.

Lactose exports in 2017 totaled 795.7 million pounds, down 0.3 percent from 2016’s record. Last year marked the fifth straight year in which lactose exports topped 750 million pounds. December lactose exports totaled 78.2 mil-lion pounds, up 14 percent from December 2017.

Butter exports during 2017 totaled 46.7 million pounds, up 35 percent from 2016 and the high-est level since 2014, when they

reached 130 million pounds. Butter exports during December totaled 5 million pounds, up 7 percent from December 2016.

Leading markets for US butter exports in 2017, on a volume basis, with comparisons to 2016, were: Canada, 20.7 million pounds, up 13 percent; Saudi Arabia 3.9 mil-lion pounds, down 2 percent; Mex-ico, 3.9 million pounds, down 4 percent; Egypt, 2.8 million pounds, up 314 percent; and South Korea, 1.9 million pounds, up 29 percent.

Ice cream exports last year totaled 139.9 million pounds, up 10 percent from 2016. December ice cream exports totaled 11.7 mil-lion pounds, up 66 percent from December 2016.

Leading markets for ice cream exports in 2017, on a volume basis, with comparisons to 2016, were: Mexico, 39.7 million pounds, up 10 percent; Saudi Arabia, 13.4 million pounds, down 6 percent; Australia, 11.4 million pounds, up 24 percent; Canada, 8.6 million pounds, up 49 percent; and United Arab Emirates, 8.4 million pounds, down 7 percent.

Cheese Imports DeclineIn 2017, US cheese imports totaled 401.3 million pounds, down 11 percent, or 50.5 million pounds, from 2016 and the lowest level of cheese imports since 2014, when they totaled 362.5 million pounds.

Cheese imports had reached a record high of 474.6 million pounds back in 2002. Their low since 2000 was 304.8 million pounds in 2010.

The value of US cheese imports last year, $1.179 billion, was down 7 percent from 2016.

Just during December, cheese imports totaled 34.7 million pounds, down 25 percent from December 2016.

In 2017, the US imported more than 1 million pounds of cheese from 33 different countries. Lead-

ing sources of US cheese imports last year, on a volume basis, with comparisons to 2016, were:

Italy: 79.3 million pounds, up 4 percent.

France: 48.6 million pounds, down 4 percent.

Netherlands: 32.3 million pounds, down 3 percent.

Spain: 24.8 million pounds, up 6 percent.

Germany: 24.8 million pounds, up 29 percent.

Switzerland: 18 million pounds, down slightly.

New Zealand: 16.3 million pounds, down 58 percent.

Norway: 15.1 million pounds, up 2 percent.

Denmark: 15.1 million pounds, down 6 percent.

Ireland: 13.7 million pounds, down 17 percent.

United Kingdom: 13.6 million pounds down 27 percent.

Lithuania: 13.2 million pounds, down 56 percent.

Canada: 11.1 million pounds, up 1 percent.

Nicaragua: 10.4 million pounds, up 11 percent.

Butter Imports IncreaseIn 2017, the value of other (non-cheese) US dairy imports was 1.657 billion pounds, down 2 percent from 2016. Just during December, the value of other dairy imports was $157.9 million, down slightly from December 2016.

Leading sources of other dairy imports last year, on a value basis, with comparisons to 2016, were: New Zealand, $570.5 million, down 10 percent; Ireland, $208.2 million, up 2 percent; Canada, $183.8 million, up 30 percent; Mexico, $100.4 million, down 8 percent; Netherlands, $88.8 mil-lion, up 5 percent; Denmark, $71.7 million, up 19 percent; Italy, $63.3 million, up 17 percent; and Ger-many, $52.3 million, down 9 per-cent.

US imports of butter and other butterfat products (primarily anhy-drous milkfat) last year totaled 85.9 million pounds, down 10 percent from 2016. Just during December, imports of these products totaled 11.2 million pounds, up 62 percent from December 2016.

Butter imports last year totaled

58 million pounds, up 9 per-cent from 2016. December butter imports totaled 3.1 million pounds, down 48 percent from December 2016.

Leading suppliers of US but-ter imports last year, on a volume basis, with comparisons to 2016, were: Ireland, 42.4 million pounds, up 44 percent; France, 4.3 million pounds, up 10 percent; Chile 2.6 million pounds, up 11 percent; Finland, 2.1 million pounds, up 41 percent; and New Zealand, 1.9 million pounds, down 62 percent.

Casein Imports DeclineUS imports of casein last year totaled 93.1 million pounds, down 4 percent from 2016. Just during December, casein imports totaled 9.7 million pounds, down 5 per-cent from December 2016.

Imports of caseinates last year totaled 53.8 million pounds, down slightly from 2016. December imports of caseinates totaled 4.6 million pounds, down 16 percent from December 2016.

Last year’s imports of Chapter 4 milk protein concentrates totaled 91.2 million pounds, down 5 per-cent from 2016. December imports of Chapter 4 MPCs totaled 5.1 mil-lion pounds, down 41 percent from December 2016.

Imports of Chapter 35 MPCs last year totaled 17.8 million pounds, down 34 percent from 2016. December imports of Chapter 35 MPCs totaled 2.4 million pounds, down 22 percent from December 2016.

19.8%Italy

8.1%

12.1%

6.2%6.2%

39%Other

Italy France Netherlands

Spain Germany Switzerland

New Zealand Other

4.5%4.1%

US Cheese ImportsLeading SuppliersVolume Basis: 2017

474.6

473.8

470.6

459.1

453.6 434.6

374.8 356.2

304.8

312.8

338.7 323.8

362.5

435.1

451.7

401.3

2002 2017

Volume of US Cheese Imports2002 - 2017; millions of lbs.



Sacramento, CA—During the August 2016-July 2017 period, the California weighted average but-ter sales price exceeded the CME cash butter market price by 2.49 cents per pound, according to a recent report from the California Department of Food and Agricul-ture (CDFA).

By contrast, during the 12-month period ending July 2016, California weighted average butter sales prices averaged 12.11 cents per pound lower than CME butter prices.

Over the entire 24-month period, California weighted aver-age butter sales prices were 4.81 cents per pound lower than CME butter prices.

For this report, data were col-lected and audited from seven Cal-ifornia butter plants. Those plants reported monthly sales volume and sales revenue for salted bulk but-ter for the 24-month period, rep-resenting 100 percent of the salted bulk butter sold by these audited California plants.

The CME butter prices used in this report are the simple average of the daily butter price per pound using the 26th of the prior month through the 25th of the current month. The weighted average California butter prices used in this report represent the calendar monthly price per pound received by each plant and then weighted by sales volume.

California’s current Class 4a and 4b pricing formulas use CME butter prices for the 26th of the prior month to the 25th of the cur-rent month.

Also, under the Class 4a (but-ter-powder) pricing formula, a f.o.b. California price adjuster of 4.85 cents is subtracted from the

average butter price; that price adjuster represents the difference in the CME price and the price actually received by California butter processors.

The butter price adjuster has been 4.85 cents per pound since Sept. 1, 2011; prior to that, it was 3.09 cents per pound. The CDFA updated the butter price adjuster in 2011 to reflect the data released by the Department in November 2010; that data found that, for the 24-month period July 2008 through June 2010, the California weighted butter sales price was, on average, 4.85 cents lower than the CME butter price.

For the 12-month period end-ing with July 2016, California weighted average butter prices were 12.11 cents per pound lower than CME butter prices. During the entire 12-month period, CME butter prices were higher than Cal-ifornia butter sales prices by any-where from 3.07 cents per pound in February 2016 to 27.97 cents per pound in November 2015.

For the 12-month period end-ing with July 2017, California weighted average butter sales prices were 2.49 cents per pound higher than CME butter prices. During that period, California butter sales prices were lower than CME prices in three months (January 2017, California prices were 2.58 cents per pound lower; February 2017, California prices were 3.42 cents per pound lower; and June 2017, California prices were 3.91 cents per pound lower).

During the other nine months, California butter sales prices were higher than CME butter prices by anywhere from 0.02 cent per pound in March 2017 to 13.86 cents per pound in September 2016.

Providing customers with high qualitycheese making equipment proven to produce higher

yields and higher consistency with higher pro�ts.

www.apt-inc.com | 877-230-5060 | Minnesota | Idaho | California

From conceptual design through commissioning, APT has the

talent, size and experience to integrate dairy plants from milk

receiving through cheese making for your new or existing facility.

APT occupies over 100,000 sq ft of state-of-the-art manufacturing and production space in

Minnesota, Idaho and California to better serve the North American market. For nearly two

decades, we have helped customers grow their business and pro�ts. Perfecting performance and

increasing e�ciencies is a standard goal of APT’s Products and Services.

Advanced Process Technologies, Inc.

Serving the Dairy & Food Industry: plant concept

design & processelectrical and mechanical engineering

automation and controlsequipment manufacturing

complete installation

C

M

Y

CM

MY

CY

CMY

K

01_Fill_WeighPak_StandUpPouches_4.6x5.pdf 5 2017-12-10 2:57 PM

During Aug. 2016-July 2017, California Butter Sales Prices Exceeded CME Butter Prices By Over 2 Cents



Record Milkfat(Continued from p. 1)

1980s: 3.66 percent, with a low of 3.64 percent in 1981 and a high of 3.68 percent in 1989.

Under the old Milk Price Sup-port Program (which was replaced by the Dairy Product Price Support Program under the 2008 farm bill), the support price for milk was set at a specified price per hundredweight of milk with an annual average milkfat content of 3.67 percent.

In December 2017, the average milkfat content of the US milk supply was 3.97 percent, which tied the record high for a single month set in December 2016, according to the monthly NASS “Agricultural Prices” report. The average milkfat content of the US milk supply had been 3.96 percent in November 2017.

During 2017, the average milk-fat content of the US milk supply dipped below 3.7 percent in just one month, July, when it was 3.69 percent. It averaged above 3.9 per-cent in November and December, as well as in January 2017, when it was 3.92 percent.

Among the 23 states that report their monthly milk production to NASS (and thus make up the 23-state monthly estimates for the agency’s “Milk Production” report), the average fat test was 4.0 percent or above in December 2017 in eight states. Leading the way was South Dakota, with an average fat test of 4.24 percent.

Other states with an average fat test of 4.0 percent of higher in December were: Idaho 4.09 percent; Iowa, 4.02 percent; Min-nesota, 4.03 percent; Oregon, 4.12 percent; Texas, 4.21 percent; Utah, 4.00 percent; and Washing-ton, 4.12 percent.

A year earlier, in December 2016, states with an average milk-fat test of 4.0 percent or higher included Idaho, Iowa, Minnesota, Ohio, Oregon, South Dakota, Texas and Washington.

For all of 2016, South Dakota was the only state with an average milkfat content above 4.0 percent, according to the annual NASS report, “Milk Production, Disposi-tion, and Income.”

3.6

3.65

3.7

3.75

3.8

3.85

3.9

2008 2010 2013 2015 2017

Avg Fat Test for All US Milk2008 – 2017; percent Milkfat

1805 Ridgeway Street • Hammond, Wisconsin 54015 USATel. 715.796.2313 • Fax. 715.796.2378Website: www.evapdryertech.com • Email: [email protected]

Featuring EDT Liquid-Activated, Retractable

CIP Spray Nozzles designed to remain in place

during production.

This value-added technology eliminates the repetitive tasks of

installing and removing spray devices; and provides a reliable,

repeatable CIP cycle.

Give us a call. Today.



during production.



Clean-in-Place SystemsValue-Added Technology

Gross Refrigerated Storage Capacity In US Totaled 3.6 Billion Cubic Feet On Oct. 1, 2017Washington—Gross refrigerated storage capacity in the US totaled 3.60 billion cubic feed on Oct. 1, 2017, according to the Capacity of Refrigerated Warehouses 2017 Sum-mary report, which was released last month by USDA’s National Agricultural Statistics Service (NASS).

This was the 50th biennial sur-vey of refrigerated warehouses.

Changes have been made to the “Capacity of Refrigerated Ware-houses” program, NASS noted. Warehouses must meet the follow-ing criteria to be included in the report: artificially cooled to a tem-perature of 50 degrees F or lower, normally store food products for 30 days or more, and store one of the 110 commodities reported in the monthly Cold Storage report. Com-modities in that report include cheese and butter.

For this report, questionnaires were mailed about the 25th of Sep-tember, 2017, to operators of over 1,050 public and private cold stor-age warehouses. Some 950 firms met the qualifications that their warehouses were artificially cooled to a temperature of 50 degrees F or lower, normally stored food products for 30 days or more and stored one of the 110 commodities reported in the Cold Storage report.

The other firms who received questionnaires either did not qual-ify or the plants had ceased being cold storage facilities during the past two years.

The list included specialized storage facilities meeting the 30-day requirement, such as dairy manufacturing plants, fruit houses, frozen fruit, fruit juice, and veg-etable processors, and poultry and meat packing plants. Wholesalers,

jobbers, packer branch houses, and frozen food processors whose entire inventories are turned over more than once a month were excluded.

Usable refrigerated storage capacity as of Oct. 1, 2017, was 2.92 billion cubic feed, or 81 per-cent of the gross space. Usable freezer space was 81 percent of the usable refrigerated space with the remaining 19 percent used as cooler space. Convertible refriger-ated space was classified as usable freezer space.

For this report, gross space is defined as the total area under refrigeration, measured from wall to wall and from floor to ceiling. Usable space is defined as the actual area used for storing com-modities (gross space less an allow-ance for aisles, posts, coils, blowers, etc.).

The five states with the largest gross warehouse capacity as of Oct. 1, 2017, were: California, 396 mil-lion cubic feet; Washington, 271 million cubic feet; Florida, 259 million cubic feet; Texas, 231 mil-lion cubic feet; and Wisconsin, 228 million cubic feet.

Public warehouse refrigerated storage capacity totaled 2.83 bil-lion gross cubic feet in 2017, accounting for 79 percent of the total storage. Public refrigerated storages are refrigerated facilities maintained for storing food for others at specified rates per unit.

Private and semi-private ware-house refrigerated capacity totaled 767 million gross cubic feet in 2017, or 21 percent of the gross refrigerated space. These are refrig-erated facilities maintained by an operator to facilitate his or her principal function as a producer, processor, or manufacturer of food

products. The space is used to store the owner’s products, although some space may be used by others at specified rates per unit stored.

Refrigerated warehouse numbers totaled 950 in 2017. The number of public warehouses was 601, while private and semi-private warehouses totaled 349.

Refrigerated warehouses by size group as of Oct. 1, 2017, were as follows: up to 499,999 cubic feet, 161 warehouses (38 public and 123 private and semi-private); 500,000 to 999,999 cubic feet, 103 ware-houses (49 public and 54 private and semi-private); 1.0 to 2.5 mil-lion cubic feet, 199 warehouses (131 public and 68 private and semi-private); 2.5 to 5.0 million cubic feet, 233 warehouses (164 public and 69 private and semi-pri-vate); and 5.0 million cubic feet or more, 254 warehouses (219 public and 35 private and semi-private).

States with the most refrigerated warehouses as of Oct. 1, were:

California: a total of 115 refrig-erated warehouses, including 78 public and 37 private and semi-private.

Wisconsin: a total of 95 refrig-erated warehouses, including 44 public and 51 private and semi-private.

Texas: a total of 58 refrigerated warehouses, including 40 public and 18 private and semi-private.

Washington: a total of 51 refrig-erated warehouses, including 34 public and 17 private and semi-private.

Florida: a total of 50 refrigerated warehouses, including 29 public and 21 private and semi-private.

Georgia: a total of 48 refriger-ated warehouses, including 32 pub-lic and 16 private and semi-private.

Pennsylvania: a total of 43 refrigerated warehouses, including 29 public and 14 private and semi-private.



FS40 line with powder dispenser, tumble drum and conveyor

At Deville Technologies we do more than just provide cheese processing companies with the perfect shred, dice, shave and grate... we keep the whole solution in mind.

We deliver ultra hygienic food cutting solutions that operate effectively and efficiently. We partner with our clients to custom design the solution that best meets their food cutting needs...because we don’t just see cheese, we see the whole picture.

We look at cheese differently.

We deliver ultra hygienic food cutting solutions that operate effectively and efficiently. We partner with our clients to

We deliver ultra hygienic food cutting

efficiently. We partner with our clients to custom design the solution that best meets their food cutting needs...

solutions that operate effectively and efficiently. We partner with our clients to

We deliver ultra hygienic food cutting

1 .866.404.4545 www.devi l letechnologies .com

Come see us at:CLFP Expo – Feb. 21-22, 2018 Sacramento, CA – Booth 1014

IPPE – Jan. 30 - Feb. 1, 2018 Atlanta, GA – Booth B 4067

Ad – Cheese Reporter.indd 1 2018-01-19 4:00 PM

IDFA To FDA: Modernize Cheese, Yogurt, Other Standards Of Identity For Dairy ProductsNMPF, USDEC Want FDA To Grant USDA The Authority To Exercise More Autonomy Over Dairy Export ActivitiesWashington—The International Dairy Foods Association (IDFA) this week urged the US Food and Drug Administration (FDA) to modernize a number of standards of identity for cheese and other dairy products.

IDFA made its recommenda-tions in response to a recent FDA request for comments and informa-tion to help the agency identify existing regulations and related paperwork requirements that could be modified, repealed, or replaced to achieve meaningful burden reduction.

There are currently 300 identity standards for foods across 20 broad categories that establish defin-ing characteristics and describe processing parameters, permitted ingredients and compositional requirements, IDFA noted. How-ever, many of these standards are outdated and do not reflect cur-rent processing technology, nor do they provide the much-needed flexibility for future technological advancement.

IDFA highlighted 10 dairy product standards of identity that it said require modernization and modification, including:

—Amend the cheese standards of identity to allow for use of milk protein concentrates (MPC) or fluid and dried microfiltered milks and permit milk-derived ingredi-ents to be labeled as “milk.”

—Amend the standards of iden-tity for Cheddar and Colby cheese to allow for the use of antimycotics (mold inhibitors) that are permit-ted in all other cheese standards.

—Amend the cheese standards to allow for salt alternatives to be used in addition to salt.

—Remove the labeling require-ment for “not-smoked” on the labeling of non-smoked Provolone cheese.

—Finalize the 2009 proposed rule modernizing the yogurt stan-dards of identity, considering mar-ketplace changes since the 2009 proposed rule was published along with current industry concerns.

—Amend the optional ingredi-ent sections of milk and milk prod-uct standards to allow for the use of MPCs and ultrafiltered milk (UF) to align with international Codex standards.

—Amend milk and milk prod-ucts vitamin D fortification levels to allow for higher levels of forti-fication that align with new daily intake recommendations for vita-min D.

—Amend the ice cream stan-dard of identity to allow for the

regulatory affairs. “Each of the pro-posed changes will provide dairy processors with greater flexibility, the ability to create more innova-tive products and continue to meet consumer expectations.”

IDFA also asked FDA to exempt the term “natural cheese” when it undertakes work to define “natu-ral” food labeling claims.

In addition, IDFA asked FDA to extend the compliance dates for the Nutrition Facts label and serv-ing size final rules to July 1, 2020, for manufacturers with $10 million or more in annual food sales and until July 1, 2021, for manufactur-ers with less than $10 million in annual food sales. Current compli-ance dates are Jan. 1, 2020, and Jan. 1, 2021, respectively.

Several provisions in the Food Safety Modernization Act (FSMA), including the inten-

tional adulteration rule, supply-chain requirements for co-packers and written assurances require-ments, need revisions because they are overly burdensome, IDFA said.

National Milk Producers Fed-eration (NMPF) and US Dairy Export Council (USDEC) noted that FDA has long had a Memo-randum of Understanding (MOU) with USDA’s Agricultural Mar-keting Service (AMS); that MOU enables AMS to conduct a vari-ety of export-related activities for dairy products.

Granting USDA the authority to exercise greater autonomy over export activities would better sup-port the export needs of the US dairy industry while allowing the US government as a whole to more efficiently and effectively achieve that goal, NMPF and USDEC stated.

use of newer milk-derived proteins such as MPCs and ultrafiltered milks.

—Allow sweet cream butter-milk and whey to be added to the collective ingredient terms “milk-fat and nonfat milk” for ice cream and frozen desserts in the ice cream standard of identity.

—Amend the milk, acidified milk, cultured milk, and yogurt standards to permit the optional use of the labeling term “whole.”

“Reviewing and revising the existing standards of identity would provide more flexibility, allow for new ingredient uses and reflect current and future techno-logical advances,” said Cary Frye, IDFA senior vice president for


PERSONNELBRIAN FOLKERTS will be the new executive vice president of government affairs for the Gro-cery Manufacturers Association (GMA). Folkerts served as vice president of public and govern-ment affairs for Mondelez Inter-national from 2012 to 2016, following five years as vice presi-dent of US government affairs for Kraft Foods Inc. and six years as a vice president and director at Altria Group/Philip Morris. More recently, he spearheaded the con-firmation effort for US Ag Secre-tary Sonny Perdue, working with the US Senate and the White House. From 1994 to 2001, Folk-erts worked at the National Food Processors Association (NFPA), where he held the role of vice president of government affairs, managing the organization’s state and federal affairs program. NFPA and GMA merged in 2007. His work in government started with legislative positions for Reps. Bill Emerson (R-MO) and Lynn Mar-tin (R-IL), and he was later asso-ciate director of the Washington office for the state of Illinois.

JORGEN ERICHSEN, execu-tive vice president of the Natural Colors Division of Chr. Hansen Holding A/S, has decided to step down from his position. Erichsen has been with Chr. Hansen since

July 2015. The company has ini-tiated a search to find a replace-ment.

JIM PITTAS assumed the role of president and CEO of the Associ-ation for Packaging & Processing Technologies (PMMI) recently, succeeding CHUCK YUSKA who is retiring after 27 years with PMMI. Pittas was named chief operating officer last April after managing PMMI’s PACK EXPO shows for 17 years.

Donald Lensmire, 86, of Kewaunee, WI, died Saturday, Jan. 27, 2018. Lensmire began his cheese industry career in 1951 at Lake to Lake Dairy Coopera-tive in Kiel, WI. Lensmire joined Ellisville Dairy four years later and stayed with the company until 1985 when he was hired by the Wisconsin Department of Agri-culture, Trade and Consumer Protection (DATCP). Lensmire worked for DATCP until his retirement in 1995.

Dolores Knaus, 82, of Mayville, WI, died Feb. 1, 2018 at the St Francis Home in Fond du Lac, WI. Knaus, along with her hus-band James, owned and operated the family cheese business Wey-auwega Star Dairy, in Weyauwega WI.

Nominations For IDFA Safety Recognition Awards Is March 30Washington—The International Dairy Foods Association (IDFA) is now accepting applications for its 14th annual Dairy Indus-try Safety Recognition Awards through March 30, 2018.

The program, open to all IDFA members, honors facilities and trucking operations for outstand-ing worker safety performance, using both leading and lagging indicators.

Examples of leading indica-tors include number of inspec-tions conducted; number of safety and health hazards iden-tified; decreased time for hazard abatement; increased employee training; safety suggestions imple-mented; and job hazard analyses.

“For the past several years, IDFA has collected information on leading indicators that the dairy industry commonly uses in effective safety and health pro-grams,” said Emily Lyons, IDFA director of regulatory affairs and counsel.

“We are pleased to recognize IDFA members that have imple-mented proactive safety programs to prevent illness and injuries from occurring in the workplace and that have outstanding safety

statistics to verify the programs are working,” Lyons said.

Dairy processing and trucking operations will be judged on occu-pational injury and illness perfor-mance rates, which are recorded in each operation’s “Summary of Work-Related Injuries and Illnesses” report (Occupational Safety and Health Administra-tion Form 300A), as well as on the components of their safety and health programs. Companies are required to post their OSHA 300A forms from February 1 through April 30 each year.

To be eligible for an award, a processing facility or transporta-tion operation must implement an effective and innovative health and safety program and have ill-ness and injury rates below the industry average.

“Companies in the dairy industry continually demonstrate that worker safety is a top prior-ity through their efforts to pro-vide a safe and productive work environment for all employees,” Lyons said.

Award winners will be notified in the fall. The award program rules, regulations and application forms are available online, and there is no fee to enter.

For more information, contact Lyons at [email protected] or (202) 220-3507. To sign up online, visit www.idfa.org/docs.

PERSONNEL

ICTE # 1117 | www.KOSSindustrial.com | 1.800.844.6261

Need Grinders? Cookers? Custom Solutions provide Limitless Possibilitieswe Modify our Models to suit YOU!

[email protected]

Systems & Services We can help you Operate, Optimize, Grow & Innovate

Equipment & Parts We Design, Build, Supply, and Service; we also Repair, Modify, and Recondition

CustomCustomQualityQualityQualityCustomQualityCustomCustomQualityCustom

kossindustrialkossindustrialQuality

kossindustrialQualityQuality



kossindustrialQuality

.comQuality

.comQualityQuality

.comQuality

2018 INTERNATIONAL CHEESE TECH EXPO

Find us #1117

ICTE 2018

Innovative Food Holdings Acquires Assets Of igourmetBonita Springs, FL— Innovative Gourmet, a subsidiary of Inno-vative Food Holdings, Inc., has acquired substantially all the assets of igourmet, an online gourmet food and gift retailer.

igourmet offers a wide assort-ment of high quality gourmet and specialty food products, including a wide variety of domestic and imported cheeses, through www.igourmet.com, and through a full line of omnichannel partners. In addition, through its specialty foodservice division, igourmet offers a wide assortment of spe-cialty food products to restaurants, specialty retailers and other busi-ness establishments.

The CEO and founder of igour-met, Spencer Chesman, a gour-met and specialty food industry leader, has been named president of Innovative Gourmet, which will operate the igourmet business as a wholly owned subsidiary, with its officers reporting directly to senior management of Innovative Food Holdings.

“I am excited to be part of the Innovative Food Holdings family of companies. I believe this trans-action provides significant oppor-tunity to increase top and bottom line growth at igourmet as well as expand into several new e-com-

merce food markets,” Chesman commented.

“I look forward to working together with the Innovative Food Holdings team and bringing our expertise and industry relation-ships towards the success of igour-met,” Chesman added.

“The acquisition of igourmet’s business is synergistic to our current mission of providing small specialty food companies direct access to the kitchens of end users nationwide,” explained Sam Klepfish, CEO of Innovative Food Holdings. “Our professional management systems will benefit igourmet and they will serve as an additional distribution center for us.”

A key goal of the acquisition is to leverage igourmet’s cur-rent available capacity, including 19,000 square feet of underutilized space available in the igourmet 65,000-square-foot warehouse, as well as capacity available due to the seasonality of the current igour-met business, to drive additional revenue growth opportunities, including additional foodservice opportunities in new geographic markets and locations.

“We plan on working closely with the igourmet team towards quickly driving bottom line prof-itability through operational effi-ciencies, cross-company synergies and margin improvement,” said Justin Wiernasz, president of Inno-vative Food Holdings.



For more information, visit www.cheeseexpo.org

MILWAUKEE, WI * WISCONSIN CENTER

JOIN NORTH AMERICA’S LARGEST CHEESE, BUTTER & WHEY PROCESSING EXPO

REGISTER BY FEBRUARY 26 TO SAVE BIG

INTERNATIONAL CHEESE TECHNOLOGY EXPO

ICTE

LEARN MORE AND REGISTER AT CHEESEEXPO.ORG

APRIL 17–19

OPENING ADDRESS: SECRETARY TOM VILSACK» President & CEO of U.S.

Dairy Export Council

WORLD CLASS SEMINARS» Today’s Challenges and

Opportunities in Dairy Trade

» Pathogen Control in Dairy Plants

» Cheese Quality Solutions

» At-the-Vat Artisan Workshop

» Managing Generations

» Driving Specialty Cheese Growth

» Dairy Ingredients in theGlobal Food Market

» Coaching, Talent Developmentand Performance Feedback

EXHIBITS ARE FREE TO DAIRY MANUFACTURERS» Over 500 exhibitor booths

» 200,000 sq. ft. exhibit hall

NETWORKING AND MORE» Industry Recognition Awards

» Auction of ChampionshipCheeses

» World Championship CheeseContest Awards Banquet

OP

EN

ING

KE

YN

OT

E

SP

EA

KE

R

US Milk Goat Inventory Increased 1.9% In 2017Washington—The US milk goat inventory totaled 380,000 head on Jan. 1, 2018, up 1.9 percent, or 7,000 head, from Jan. 1, 2017, according to the annual Sheep and Goats report released Wednesday by USDA’s National Agricultural Statistics Service (NASS).

The US milk goat inventory has now increased by 57,000 head since Jan. 1, 2008. During that period, the milk goat inventory declined once (the number of milk goats on Jan. 1, 2014, was down down 8,000 head from a year earlier. The milk goat inventory was also unchanged in both 2011 and again in 2016.

Wisconsin continues to be home to more milk goats than any other state. As of Jan. 1, 2018, there were 47,000 milk goats in Wisconsin, up 7 percent, or 3,000 head, from Jan. 1, 2017.

California had 40,000 milk goats as of Jan. 1, 2018, down 2 percent, or 1,000 head, from a year earlier. In Iowa, there were 31,000 milk goats as of Jan. 1, 2018, up 500 head, or 2 percent, from a year earlier.

Texas recorded the largest increase in milk goat numbers on both a percentage basis and on a quantity basis last year. As of Jan. 1, 2018, Texas had 26,000 milk goats, up 18 percent, or 4,000 head, from Jan. 1, 2017.

Wisconsin, California, Iowa and Texas combined accounted for almost 38 percent of the US milk goat inventory as of Jan. 1, 2018.

Ten additional states or regions had 10,000 or more milk goats as of Jan. 1, 2018. Those states, their milk goat inventory, and the change from Jan. 1, 2017, were as follows: Florida, 10,000 head, unchanged; Indiana, 11,000 head, unchanged; Michigan, 11,500 head, down 8 percent; Minne-sota, 14,000 head, up 17 percent; Missouri, 10,500 head, up 2 per-cent; New England (Vermont, Connecticut, Maine, Massachu-setts, New Hampshire and Rhode Island), 14,600 head, up 3 percent; New York, 13,000 head, down 5 percent; Ohio, 10,500 head, up 5 percent; Oregon, 13,000 head, up 3 percent; and Pennsylvania, 15,000 head, unchanged.

320

330

340

350

360

370

380

20082009201020112012201320142015201620172018

Column1US Milk Goat InventoryAs of January 1x 1000

Traditional Welsh Caerphilly Cheese Gains Protected Status In EUBrussels, Belgium—The Euro-pean Commission recently approved the addition of Tradi-tional Welsh Caerphilly cheese to the list of Protected Geographical Indications (PGI) in the EU.

Welsh Caerphilly, also known as Traditional Welsh Caerffili, has the reputation of historically being Wales’ only native cheese. It is a “Caerphilly” styled cheese made in Wales from milk produced on Welsh farms. The cheese can be made from pasteurized or raw cow’s milk and produced using either organic or non-organic cow’s milk.

Traditional Welsh Caerphilly is produced as a flat round shaped

cheese with a uniform consis-tent creamy white texture. Made throughout Wales, it is made to be eaten when young, from 10 days, but can be matured for a more pro-nounced flavor. It is historically sold dusted with flour or oatmeal.

Traditional Welsh Caerphilly is presented as a flat round cheese ranging from two to four kilograms in weight with a diameter of 20 to 25 centimeters and a depth of six to 12 centimeters. However, min-iature cheeses can also be made.

In contrast to other hard cheeses, Traditional Welsh Caer-philly’s specific acidity range, high moisture content, low scalding temperature and length of matu-rity are all factors that contribute to its mild lemony taste and are factors governed by the skill base of the maker during production.

The skill base for making Caerphilly has been developed and associated with Wales since the early 19th century. The link between the geographical area and the product is due to the factors which contribute to the flavor and characteristics of the product: that it is made from cows milk produced on Welsh farms which have been fed a predominantly forage-based diet; and specific knowledge and skill base of producers to produce the cheese. These skills have been developed and have remained largely unchanged for generations.

Among the differences between Traditional Welsh Caerphilly and Caerphilly cheese: Caerphilly cheese is presented as a modern style “block” cheese; and Caer-philly is sold and consumed as a young cheese and is not matured.



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

This HACCP (Hazard Analysis and Critical Control

Points) Course is accredited by the International HACCP

Alliance and provides HACCP training for food

processors. The relationship between food safety and

HACCP in the food manufacturing setting will be

discussed. HACCP plans, implementation and plan

maintenance will be developed in order to prevent

foodborne illness.

Upon successful completion of the course, participants

will:

• Be eligible for two college credits in the

Laboratory Science Technician program at

Southwest Tech.

• Receive a certificate of completion with the

International HACCP Alliance gold seal.

Apply Concepts Immediately Upon Completion

• Identify and control hazards in food processing

• Develop a HACCP plan

• Implement and maintain a HACCP program

• Understand importance of prerequisite programs

• Review good manufacturing practices

FEB 28 –MARCH 1, 2018

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

Health Science Building, Room 492

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

Certificate of Completion.

For [email protected] 608.822.2360

Register Online Today!www.swtc.edu/bisreg

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

• Receive a certificate of completion with the

Melbourne’s Montefiore Wins Top Cheese Honors At Australian Grand Dairy AwardsMelbourne, Australia—Monte-fiore Cheese here captured the Grand Champion Cheese award at the recent 19th Australian Grand Dairy Awards for its Ovoline entry.

The 2018 Grand Champion Dairy Product went to Sydney-based Pure Gelato for its Salted Pistachio Gelato.

For the second time, the Aus-tralian public was given the oppor-tunity to determine the People’s Choice Award for best dairy prod-uct. More than 13,179 votes were cast for Passionately Passionfruit Yogurt by The Yogurt Shop.

A panel of 22 expert judges tasted hundreds of dairy foods, including cheese, ice cream, milk, butter, cream, yogurt, dips and gelato, assessing flavor, aroma, tex-ture, body and appearance.

“The awards are the crème de la crème of dairy and a fantastic opportunity for local farmers and producers to be recognized on a

national scale for their talent, hard work and making a positive contribution to the dairy industry,” said Amanda Menegazzo, contest spokesperson.

The top 18 Australian Grand Dairy Awards Champions include:

Champion CheesesFresh Unripened: Montefiore Ovoline, Montefiore CheeseWhite Mold Cheese: King Island Dairy Discovery Ash Brie, Lion Dairy & Drinks-King IslandSemi-Hard & Eye Cheese: Mon-forte, Section 28 Artisan CheesesCheddar Style: Heritage Reserve Vintage Cheddar, Bega CheeseHard Cheese: Mil Lel Superior Parmesan Cheese, Warrnambool Cheese & Butter Factory Com-pany Holdings LtdBlue Cheese: Tarwin Blue, Berrys Creek Gourmet Cheese Washed Rind & Mixed Rind: Woombye Blackall Gold Washed Rind, Woombye Cheese Company

StronginContinued from p. 4

generations of number-crunching, alternate-scenario-loving, spread-sheet-addicted idiot-savants.”

The irony is that the creator of the Toyota production system, Taiichi Ohno, got his initial ideas from a visit to an American super-market in the 1950s. However, Toyota does not and never has worked on a pure “on demand” or just in time model for deciding on how much product they should produce.

They work on a modified ver-sion, using sales projections from the different divisions built from data collected over time to pre-dict how many cars to make in a month: statistical models based on pragmatic, analytic, not ordinary count em up statistics, regression analysis, and probabilistic equa-tions be damned!

Sitting around the executive offices, looking at spreadsheet profit, cooking up hair-brained schemes from what they learned in Buness School, rather than hav-ing the humility to go to the stores

Flavored Cheese: Monte Diavolo, Section 28 Artisan CheesesGoat’s or Sheep’s Milk Cheese: Riverine Blue, Berrys Creek Gour-met Cheese

Champion Dairy ProductsNatural Yogurt: Jalna Greek Nat-ural Yogurt, Jalna Dairy FoodsFlavored Dairy Drink: Dare Iced Coffee Double Espresso, Lion Dairy & Drinks-MalandaCream: Pure Double Cream, The Little Big Dairy CompanyButter or Butter Blend: West-ern Star Chef’s Choice Unsalted Cultured Butter, Fonterra Brands (Aust) Pty Ltd-CobdenFlavored Yogurt: Mundella Greek Honey Yogurt, Mundella FoodsIce Cream: Licorice Ice Cream, Gundowring Fine FoodsDairy Gelato: Pure Gelato Salted Pistachio, Pure GelatoMilk: Farmers Choice Guernsey Non-Homogenized Full Cream Milk, Maleny DairiesSpecialty White Dairy Drink: Masters HiLo, Lion Dairy & Drinks-Bentley.

and the talk to the many hundreds of dedicated willing workers who deal with these problems on a daily basis within their own company is most likely the problem. They kind of clevered themselves into a ker-fuffle.

I do know some people who worked with Amazon on their predictive statistics. Ironically, if anyone is prepared to improve the situation, it is Amazon. Though I do still believe they would be bet-ter served by involving the people who work for them and are closer to the customers and the problem. A store is not a website. After all, it was the employees who brought all the great cheeses into the stores in the first place. DS

USDA Offers Electronic Data Platform To Deliver Market Price Info To IndustryWashington—USDA’s Agricul-tural Marketing Service (AMS) recently announced the launch of a new electronic data platform to deliver market price informa-tion to the commodities industry.

The new web-based platform, Market Analysis and Reporting Services (MARS), uses what AMS describes as state-of-the-art technology to present detailed data sets in a more customer-focused way to better support competitive markets for produc-ers and others and help stabilize food prices.

“USDA Market News is the most relied upon source of unbi-ased agricultural market data,” said Greg Ibach, USDA under secretary for marketing and regu-latory programs. “USDA’s on-site market reporters gather, analyze and publish unbiased data all day long to ensure fair food prices for consumres across the country and around the world.

“The MARS project applies the best data management prac-tices to make that data available when and where farmers, pack-ers and processors need it,” Ibach added.

Market News information for dairy products will become the first set of data and reports avail-able through MARS, followed by cotton and tobacco, scheduled for April 2018. Dates for livestock, poultry and grain and specialty crops will be announced later. It is anticipated that all Market News data will be moved to the new system by March 2019.


Stationary Machines Mobile Machines

Sulbana Inc.Monroe, WI 53566Office 608 426 [email protected]

All-In-OneBoosted pressure foam cleaning technology for a complete, safe and economical open plant cleaning of surfaces and production equipment in the food industry

One handle for all functions

Hygienic stainless steel design

NEXT-Technology: one outlet for

three chemicals with separate

metering tip for each chemical

One system for all cleaning tasks

including rinsing with 334/650 psi,

foaming and sanitizing

Madison—The upcoming World Championship Cheese Contest has drawn a record-breaking 3,402 entries and overall participation is up 15 percent from 2016, when the biennial event was last held.

The contest will take place here March 6-8 at the Monona Terrace Convention Center.

International entries are up 33 percent, to a total of 919. Cheese makers from 26 nations, includ-ing Argentina, Australia, Austria, Brazil, Canada, Croatia, Denmark, Estonia, Finland, France, Ger-many, Greece, Ireland, Italy, Lith-uania, Mexico, Netherlands, New Zealand, Poland, Portugal, Slove-nia, Spain, Sweden, Switzerland, and the UK are sending their dairy products for evaluation.

“The World Championship Cheese Contest has grown steadily over the past two decades,” said Kirsten Strohmenger Henning, events manager for the Wiscon-sin Cheese Makers Association (WCMA), contest host.

“We’re particularly excited to see the significant jump in entries from cheese makers operating out-side the US,” Strohmenger Hen-ning said.

The US is also strongly repre-sented in the international com-petition, with entries coming from 32 states including California, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Maine, Maryland, Massa-chusetts, Michigan, Minnesota, Missouri, Nebraska, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsyl-vania, Rhode Island, South Caro-lina, South Dakota, Texas, Utah, Vermont, Virginia, Washington, and Wisconsin.

“Both in the US and around the

world, our contest’s gold medal on the labels of award-winning cheese drives consumer purchases and boosts sales,” Strohmenger Hen-ning said.

The 2018 judging team consists of 55 experienced cheese graders, cheese buyers, dairy science profes-sors, and researchers, hailing from 20 countries and 15 US states. Judges are led by chief judge Robert Aschebrock; chief judge emeritus Bill Schlinsog; and assistant chief judges Tim Czmowski of Agropur, Inc.; Stan Dietsche of Oshkosh Cheese Sales & Storage; Josef Hubatschek of ALPMA; Mariana Marques de Almeida of Ms. J and Co.; Jim Mueller of Mueller Con-sulting; and Sandy Toney of Mas-ters Gallery Foods.

Brian Eggebrecht of Welcome Dairy, Inc. in Colby, WI, serves as contest committee chairman. Eggebrecht will again be aided this year by a record amount of volun-teers known as the “B-Team”.

Judges will evaluate 121 classes of dairy products, including new categories for traditional waxed and natural rinded Cheddars, Pan-eer, an open class for hard cheeses with natural rinds, and various goat and sheep’s milk cheeses.

A single gold, silver, and bronze medal is awarded to top products in each class.

“As trends in cheesemaking shift, so too do classes in the World Championship Cheese Contest,” Strohmenger Henning said. “Ensuring that every cheese is fairly judged against the standards of its type ultimately ensures that when our judges name the Grand Champion, you know it truly is the best cheese in the world.”

The World Championship Cheese Contest, initiated in 1957,

World Championship Cheese Contest Tops Entry Record; Reception Tickets Available

is the largest technical cheese, but-ter, and yogurt competition in the world, organizers said.

Tickets For Cheese ChampionReception Now Available OnlineTickets to the popular Cheese Champion Reception, the signa-ture public event of the upcom-ing World Championship Cheese Contest, are now available online.

The event will take place here Thursday, March 8 at the Monona Terrace Convention Center, and will feature more than 50 contest entries from around the world, along with local specialty foods and craft beer samples.

Attendees will also have the opportunity to learn the intricacies of cheese evaluation from world contest cheese judges, and be present as the winner of the 2018

World Championship Cheese Contest is announced.

“International participation is up, and we’re thrilled to welcome dozens of new competitors to the Contest in 2018,” Strohmenger Henning said.

Tickets are $25 per person, and are on sale online. With a limit of 500 attendees, space will sell out well in advance of the event.

“With more entries, new classes, and a peerless team of internation-ally-renowned judges, the World Championship Cheese Contest is going to be bigger and better than ever,” Strohmenger Henning said.

To purchase tickets online, visit WorldChampionCheese.org. For questions, call (608) 286-1001 or contact Kirsten Strohmenger Hen-ning via email: [email protected].

212363

522537508534498

591787

9331033

11441312

17951941

23182503

26192959

3402

1980 1984 1988 1992 1996 2000 2004 2008 2012 2018

Dairy Product EntriesWorld Championship Cheese Contest


Dairy Product EntriesWorld Championship Cheese Contest


Call 608-246-8430 or email: [email protected] to subscribe orfor questions regarding the Cheese Reporter App

CA Order Delayed(Continued from p. 1)

2015, ALJ Jill S. Clifton presided over the proceedings on behalf of USDA. At the time of the hearing, USDA believed Clifton to be an employee of the Department and her appointment was completed in accordance with procedures.

If the Supreme Court determines that ALJs are inferior officers of the US rather than employees, then Clifton’s original appoint-ment as an ALJ would be brought into question, AMS noted.

The Supreme Court is expected to hear oral arguments in the Lucia v. SEC case during the current term and to render its decision on or before the end of its term on June 30 2018.

As of Nov. 29, the Department of Justice will no longer argue in the federal courts that ALJs are employees rather than inferior offi-cers unless the Supreme Court says otherwise. Consequently, AMS said it is prudent and appropriate to delay further proceedings in the California federal order rulemak-ing until the court renders its deci-sion in Lucia v. SEC.

Hearing Request DeniedAMS’s decision to delay the Cali-fornia federal order rulemaking came less than a week after the California Department of Food and Ag (CDFA) denied a request for an emergency hearing to con-sider increases to milk prices for a 12-month period. The request was made by California Dairy Cam-paign (CDC) and Western United Dairymen (WUD).

Jeff Cesca director of CDFA’s Division of Marketing Services, said it is “inappropriate to hold a hearing while California dairy pro-ducers are exercising self-determia-tion” with regards to implementing

a federal order in California. The CDFA is “acutely aware” of

the impact to dairy families of sus-tained low milk prices, Cesca said.

Indeed, after CDC and WUD submitted their petition, the CDFA heard from roughly two dozen California dairy produc-ers who supported the emergency hearing request.

“The dairy business has been very unprofitable due to the fact that the production costs far exceed the price we are receiv-ing for our milk. Because of this, the dairies have lost most of their equity, if not all, and are under extreme pressure from the banks causing dairies to go out of business since 2009,” said Frank Mendonsa of FM Ranch.

Edwin Koetsier, of Oakview Dairy, Tulare, CA, asked the CDFA for “immediate assistance” in the form of higher milk prices for California’s dairy producers.

“If we do not receive help soon many dairies will be lost this year,” Koetsier wrote. “An important thing to realize is that once these dairies need to close their doors many will never be re-opened again.”

Inadequate Make AllowancesThe CDFA said it is also aware that dairy producer-owned and proprietary dairy manufacturers are also under financial pressure as evidenced by the CDFA’s recently released manufacturing cost study, Cesca noted.

Among other things, that study found that the weighted aver-age cost to manufacture Ched-dar cheese in California in 2016 was a record-high 24.54 cents per pound. The current make allowane for Cheddar cheese used in Cali-fornia’s Class 4b (cheesemilk) pricing formula is 19.88 cents per pound (for more details, please see

Average Cost To Make Cheddar In California on page 1 of our Feb. 2nd issue by scanning the QR Code on page 2 of this issue).

Dairy Institute of California requested that the CDFA deny the hearing petition.

“While we understand the chal-lenges of the current price envi-ronment in which producers are operating, regulated price adjust-ments must reflect both farm and manufacturing plant realities,” Dairy Institute said. Raising farm milk prices “would result in unwise increases in regulated price levels at a time when product prices are weak, margins are compressed for manufacturers and fluid milk sales are declining.

“Increases in the regulated price levels will compound these dif-ficulties and improve the market position of our out-of-state com-petitors, while diminishing ours,” Dairy Institute added.

Dairy producers are already receiving “enhanced regulated prices” for their milk because the pricing formulas make allowances are “well below the actual cost of manufacturing,” Dairy Institute continued. Class 4a butter and nonfat dry milk make allowances have not been adjusted in seven years, while the make allowance for cheese has not been adjusted in 10 years.

“In addition, the disproportion-ate price increase proposed for the 4b formula ignores the reality of the current whey values that are generating losses for some cheese plants and severely compressed margins for others,” Dairy Institute added.

Farmdale Creamery, San Ber-nardino, CA, also asked the CDFA to deny the hearing petition. Farm-dale said it is experiencing “seri-ously negative financial results,” primarily from two “features” in the

current milk pricing environment: the CDFA’s continuing refusal to adjust the make allowance, and the “dysfunctional” whey factor that is “completely dissociated from the realities of realizable end product prices in the marketplace.”

Hilmar Cheese Company requested that the CDFA deny the hearing petition but, if it didn’t deny it, asked that the hearing also be open to including testimony on make allowances.

“Both dairymen and processors would like to see higher returns, but artificially adjusting manda-tory prices that reward or punish different groups will not help the industry in the long term,” Hilmar Cheese noted. “Setting prices too high will not allow California man-ufacturers to receive an adequate return on investment, will delay needed investments that actually add value to milk, interfere with market forces and decrease milk premiums.”

Leprino Foods Company urged the CDFA to include a make allow-ance update to the Class 4a and 4b formuas if it granted a hearing.

“Setting minimum regulated milk prices for manufacturers that are reverse engineered based upon finished product values without maintaining updated manufactur-ing cost allowances is dangerous and imperils California manufac-turing capacity,” Leprino Foods said.

Savencia Fromage & Dairy’s plant in City of Industry, CA — also known as Fleur De Lait West — produces ceam cheese for retail, industrial and foodservice custom-ers in the western half of the US, and also supports a growing cream cheese export business from that location.

“The plant needs to maintain a cost structure that is competitive with other cream cheese manufac-turers, as well as the other Saven-cia plant in Pennsylvania,” the company said. “If the milk cost in California increases relative to other parts of the country, it has a direct and negative impact on our competitiveness versus other sup-pliers of cream cheese, particularly ones in nearby states, which we compete against.”

Cacique Inc., Monrovia, CA, competes directly with regional manufacturers “who are aggressive in both seeking new business and defending existing business. Most of these competitors are located east of the Rockies, and many of those areas are seeing abundant supplies of attractively priced milk. Increasing California’s milk prices will make it difficult to maintain our sales against such competitors.”

Cacique asked the CDFA to deny the hearing request, but if it did grant a hearing, that it also consider proposals for increases to the make allowances in the Class 4a and 4b formulas.


Secretary Tom VilsackRecognition Luncheon Keynote

Networking OpportunitiesNetwork with over 1,000 attendees from the dairy products industry.

Welcome ReceptionA great way to kick-o� the 2018 conference.

Industry Award PresentationsThe Recognition luncheon will highlight industry awards.

Dairy Market Outlook for 2018 A panel discussion comprised of economists and a meteorologist

Informative Exhibit HallThe place to learn, explore and network with over 40 vendors.

Grand Chicago ReceptionA one-of-a-kind reception featur-ing a “Taste of Chicago”.

Industry Product Brie�ngsSessions will include brie�ngs on Lactose, Permeate, Whey Proteins.

Senior Leaders PanelTop dairy industry leaders discuss the future for the industry.

Matt McKnightPermeate in China Update

Frank MitloehnerDairy Industry Sustainability

Rachel ThompsonConfectionery Market Outlook

SPEAKERS HIGHLIGHTS AGENDA1 29

30

30

1

2

3

4

2018 ADPI/ABI Annual Conference

Conference Platinum Sponsors:

Take Advantage of Early Bird Rates at www.adpi.org

“Where The Dairy Industry Does Business”

April

April

April

May

ADPI_Feb2018_cr.indd 1 2/7/2018 4:01:14 PM

Arla Foods To Invest 527 Million Euros To Help Meet Growing Global Dairy DemandLondon, England—Arla Foods recently announced plans to invest 527 million euros this year as it continues to deliver on its 2020 growth ambition.

The executive management’s decision to significantly increase the company’s investments (2017’s investment plans totaled 335 mil-lion euros) was approved at a meet-ing in London this week by Arla’s board of directors.

Arla is focusing its investment in four key areas: meeting the growing demand; leading the way in whey; healthy and natural products that match consumer lifestyles; and sus-tainable food production.

Some 50 percent of Arla’s investments in 2018 are targeted projects aimed at growing the com-pany’s sales outside Europe, where the company’s fastest growing stra-tegic growth markets are the Mid-dle East and North Africa, China and Southeast Asia, Sub-Saharan Africa, and the US.

Two-thirds of this year’s spend-ing will focus on increasing Arla’s European production capacity, with 266 million euros being invested in Denmark, 82 million euros in the UK, 78 million euros in Sweden, and 65 million euros in Germany, along with 36 mil-lion euros for production in other countries.

Arla Foods Ingredients, a sub-sidairy of Arla Foods, will be the recipient of large investments by its parent company, which will invest more than 100 million euros

in technology and capacity expan-sions for its production of whey protein ingredients for the global food industry.

In Sweden, another 5 million euros will be invested by Arla Foods to add a whey processing capacity at Falkenberg dairy that can concentrate the whey from the site’s cottage cheese produc-tion and add more value through Arla Foods Ingredients.

Arla will use its experience from its Scandinavian markets and a 56 million euro investment to lay the foundations for the production of Lactofree products at its Aylesbury site in the UK.

Also, Arla plans to expand its production site in Pronsfeld, Ger-many, that supplies milk powder and UHT milk for many of Arla’s strategic growth markets outside Europe.

Menu Labeling Bill OK’d By House Praised By Food Retail Industry, Criticized By CSPIWashington—The US House on Tuesday passed the Common Sense Nutrition Disclosure Act, which revises the nutritional infor-mation that restaurants and retail food establishments must disclose.

Specifically under the legisla-tion, the nutrient content dis-closure statement on the menu or menu board must include: the number of calories contained in the whole menu item; the number of servings and number of calories per serving; or the number of calo-ries per common unit of the item, such as for a multi-serving item that is typically divided before pre-sentation to the consumer.

Under the bill, nutrition infor-mation may be provided solely by a remote-access menu (e.g., an inter-net menu) for food establishments where the majority of orders are placed by customers who are off-premises.

Establishments with standard menu items that come in different flavors, varieties, or combinations, that are listed as a single menu item can determine and disclose nutrition information using speci-fied methods or methods allowed by the US Food and Drug Admin-istration (FDA).

Similar legislation has been introduced in the US Senate.

“This bill, at its very core, is about flexibility,” said US Rep. Cathy McMorris Rodgers (R-WA), who introduced the Common Sense Nutrition Disclosure Act in the House in early 2017. “This leg-islation provides flexibility in how restaurants provide the nutritional information.”

The Food Marketing Institute (FMI) applauded the House pas-sage of the bill, noting that it pro-vides liability and enforcement protections for good-faith compli-ance efforts; allows the use of a centrally located, prominent menu board for salad bars and other food displays; and preserves the offering of locally made and locally sourced foods.

“This bill provides a common sense solution to a burdensome regulation that was applied as a one-size-fits-all approach to vastly different industries,” commented Peter Larkin, president and CEO of the National Grocers Associa-tion.

But Margo G. Wootan, vice president of the Center for Sci-ence in the Public Interest (CSPI), said the legislation would “upend disclosure by letting restaurants invent misleading serving sizes, hide calories in hard-to-find places inside supermarkets and conve-nience stores, and remove calories from inside pizza chains.”


www.cheesereporter.com/events.htmSUPPLIER NEWS

COMPANY NEWS

PEOPLE

We look at cheese differently.

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

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

Entry Deadline For 2018 Canadian Cheese Awards Is Feb. 16Guelph, Ontario—The entry deadline for the 2018 Canadian Cheese Awards is February 16.

Judging will take place here Feb. 22-23 at the University of Guelph. Finalists will be announced March 5, with win-ners lauded at a special awards ceremony and tasting gala on June 6 at Toronto’s historic St. Lawrence Market.

The inaugural Canadian Cheese Expo will take place the following day for trade members, and the first-ever Canadian Arti-san Cheese Night Market for the public will be held.

Canada’s largest cheese com-petition is open to artisan cheese makers in Canada using the milk of Canadian cows, goats, sheep and water buffalo – with no arti-ficial colors, flavors or preser-vatives, and no modified milk ingredients. It’s open to licensed producers – federal or provincial, or in the case of sheep’s milk cheese in Ontario, municipal.

The contest features 18 classes with nine special awards for Best Cow’s Milk Cheese, Best Organic Cheese, Best New Cheese, etc. There will also be five awards for Best Regional Cheeses.

This year’s judging panel includes: Arthur Hill, Univer-sity of Guelph; Yannick Achim, Yannick Fromagerie Laurentians; Janice Beaton, Janice Beaton Fine Cheese & FARM Res-taurant; Gurth Pretty, Loblaw Companies; Odysseas Gounala-kis, Scheffler’s Delicatessen & Cheese; Marla Krisko, Cheese Education Guild; Ghislain Paquet, Fromagerie De la Gare; Geoff Rempel, Whole Foods Market; Vanessa Simmons, Savvy Company; Nick Tsioros, Olympic Cheese Mart; Olivier Laurin, Centre d’expertise fro-magere du Quebec; Egon Sklov-mose, and Danlac Canada, Inc.

Georgs Kolesnikovs, founder and director of The Great Cana-dian Cheese Festival, will serve as awards chairman and non-voting member of the jury.

Cost to participate is $75 per entry. Contestants need to ship cheese to arrive at the judging venue in Guelph by Feb. 21.

To enter, visit www.cheeseawards.ca.

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

Pullman, Washington

Pasteurization WorkshopApril 10 - 12, 2018Pullman, Washington

Register at:

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

For more information contact: John Haugen

WSU Creamery [email protected]

509.335.5733

2018 Washington State University Creamery

Educational Opportunities

‘Undercover Boss’ Dairy Farm Featured At Nebraska Dairy Convention Feb. 27Columbus, NE—California dairy farmer Brad Scott, whose 1,000-cow dairy farm was featured on the television show “Undercover Boss,” will be among the featured speakers at the 2018 Nebraska Dairy Convention here Tuesday, Feb. 27 at the Ramada Inn.

Sponsored by the Nebraska State Dairy Association, the con-ference includes educational ses-sions, trade show, annual business meeting and evening banquet.

Professor Bruce Anderson from the University of Nebraska-Lin-coln will discuss recommendations for raising dairy quality forage in a beef state, and Maggie Faulker, Acumen Detection, will cover costs associated with mastitis.

Nancy Huls with the Midwest Dairy Association will provide an MDA update, along with nutri-tion communications consultant Amber Pankonin and MDA regis-tered dietician Caryn Kusleika will lead a communications workshop.

Dairy production awards will be followed by a Grow Nebraska Dairy update and business meet-ing. Trade show hours are 9:30 a.m. to 4:30 p.m., and the banquet will wrap up the event.

The convention is free to all Nebraska dairy farmers, families and guests. Pre-registrations are encouraged by Feb. 20. Attendee and sponsorship registration forms are available online at www.nebras-kamilk.com.

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

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

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

•March 7-11: 37th Annual Natural Products Expo West, Anaheim Convention Center, Anaheim, CA. For details, visit www.expowest.com.

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

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

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

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

PLANNING GUIDE

HACCP Certification Workshop Planned For Feb. 28 In MilwaukeeMilwaukee, WI—A one-day course designed to achieve HACCP knowledge and compe-tency will take place here Feb. 28 at the Hyatt Regency Milwaukee.

The course is sponsored by the Wisconsin Manufacturing Exten-sion partnership (WMEP) and will be led by WMEP’s Peg Dorn and Lindsey Trickey. Students will learn how to write a HACCP plan, implement a HACCP sys-tem, understand the basics of food microbiology and sanitation, and follow prerequisite programs. Instructors will also review com-mon GMP.

Unlike other training courses which offer basics in the princi-

ples of HACCP and no applica-tion, WMEP’s training course is designed to facilitate the develop-ment of a solid HACCP plan as you learn, organizers stated

Cost to attend is $350 per stu-dent. Each additional student from the same company will save $50. Those who register for the HACCP course are also eligible to receive $100 registration for “Manufactur-ing Matters,” which takes place March 1 at the Hyatt Regency.

Those interested should contact Tammy Schwarzbauer at [email protected] or (920) 915-2582 to receive the discount code for registration.

For full details or to register online, visit https://www.wmep.org


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

rvin

gth

eWorld's Dairy Industry W

eekly

Since 1876

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

1. Equipment for Sale

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

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


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].

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


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].

2. Equipment Wanted

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

3. Products & Service

4. Walls, Flooring

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

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.

5. Real Estate

DAIRY PLANTS FOR SALE: http://dairyassets.webs.com/acquisitions-mergers-other. Contact Jim at 608-835-7705; or by email at [email protected]

6. Promotion & Placement

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

6. Help Wanted

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

10. Cheese & Dairy Products

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

11. Testing Services

Promote your microbiological, nutritional or food sample testing services here. Call 608-246-8430 for more information or email [email protected].

14. Warehousing

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

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

For hard to find products, supplies or employees, visit

www.cheesereporter.com/classifieds.htm or e-mail [email protected]

or 608-246-8430 or 608246-8431

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

Email: [email protected]



3010 TU-WaySimultaneously cuts either two 40-lb blocks

or up to four 20-pound Mozz loaves.



General Machinery Corporation

1820 Single DirectionCheese Cutter

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

Call NOW at 1-888-243-6622Email: [email protected]

www.genmac.com

General Machinery Corporation

Hydrauflake ChunkerFrozen Block Flaker

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

Call NOW at 1-888-243-6622Email: [email protected]

www.genmac.com

3001EW TU-WAY Exact Weight Cheese Cutter

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

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

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

to your needs, including:

Holding/ Bulk Tanks Vats Cheese Presses/Molds Butter Churns

Processors and Mixing tanks

Ullmer’s Dairy Equipment helps their customers produce quality products by providing quality

new, refurbished and used dairy processing equipment.

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

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

[email protected]

www.ullmers-dairyequipment.com

Call for Competititve PricingJamey Williams at 972-422-5667

[email protected]

Wisconsin's Finest Cheese

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

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

Red Wax WedgesCream CheeseSwissBaby SwissAsadaroMuenster

Serving: Retail, Foodservice, Delis

Warehouses in Texas & Wisconsinfor convenient pick-ups

Your Direct Source for all your

cheese needs!


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 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Company _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Address _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

City/St/Zip _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

E-Mail _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

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

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

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

Issue Date: 2/09/18

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____________________________

February 7, 2017—AMS’ National Dairy Products Sales Report. Prices included are provided each week by manufacturers. Prices collected are for the (wholesale) point of sale for natural, unaged Cheddar; boxes of butter meeting USDA standards; Extra Grade edible dry whey; and Extra Grade and USPH Grade A nonfortified NFDM. •Revised

WEEK ENDINGStyle and Region Feb. 3 Jan. 27 Jan. 20 Jan. 13

40-Pound Block Cheddar Cheese Prices and Sales Weighted Price Dollars/PoundUS 1.5286 1.5492• 1.5275 1.5221 Sales Volume PoundsUS 11,572,092 13,3560,069• 12,511,882 12,161,364

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

Weighted Price Dollars/PoundUS 1.4525 1.4768 1.5024 1.5735 Weighted Price Adjusted to 38% Moisture US 1,3831 1.4066 1.4322 1.4962 Sales Volume PoundsUS 9,806,004 11,877,950 12,035,015 13,088,123Weighted Moisture Content PercentUS 34.89 34.90 34.96 34.80

Butter

Weighted Price Dollars/PoundUS 2.1524 2.1573 2.1822 2.2312Sales Volume PoundsUS 5,156,109 4,120,575 4,525,163 4,227,298

Dry Whey Prices

Weighted Price Dollars/PoundsUS 0.2524 0.2717 0.2696 0.2809•Sales Volume US 8,882,773 6,983,373• 6,454,231 7,213,741

Nonfat Dry Milk

Average Price Dollars/PoundUS 0.6980 0.7037• 0.6950• 0.6904Sales Volume PoundsUS 22,229,490 21,628,477• 20,329,047• 19,154,065•

DAIRY PRODUCT SALES2017 Dry Whey PricesHigh Range (Central and West: Mostly)

$0.25

$0.30

$0.35

$0.40

$0.45

$0.50

$0.55

Central High West High

2017 Lactose Prices2010High/Low Range (Central and West: Mostly)

$0.15

$0.20

$0.25

$0.30

$0.35

$0.40

$0.45

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

$0.60

$0.70

$0.80

$0.90

$1.00

$1.10

$1.20

$1.30

DAIRY FUTURES PRICESSETTLING PRICE *Cash SettledDate Month Class III* Class IV* Dry Whey* NDM* Butter* Cheese*2-2 February 18 13.63 13.24 26.250 73.000 216.000 1.48702-5 February 18 13.74 13.24 26.250 74.400 214.500 1.50002-6 February 18 13.68 13.30 26.250 74.000 214.775 1.49602-7 February 18 13.60 13.20 26.100 73.075 213.000 1.49202-8 February 18 13.47 13.10 24.850 72.400 212.850 1.4830

2-2 March 18 13.61 13.35 26.175 74.150 214.900 1.49202-5 March 18 13.73 13.50 26.175 76.400 214.500 1.50202-6 March 18 13.69 13.50 25.750 76.250 214.500 1.49602-7 March 18 13.61 13.35 25.500 74.750 213.500 1.48902-8 March 18 13.51 13.30 24.350 75.000 212.125 1.4890

2-2 April 18 13.80 13.60 26.300 76.025 217.625 1.50602-5 April 18 13.87 13.69 26.500 78.250 216.300 1.51102-6 April 18 13.85 13.77 26.450 77.850 216.275 1.50802-7 April 18 13.80 13.50 26.200 76.000 215.150 1.50302-8 April 18 13.70 13.50 225.125 76.550 214.500 1.50002-2 May 18 14.14 13.87 27.000 78.150 220.300 1.53302-5 May 18 14.15 13.93 27.425 80.500 217.525 1.53502-6 May 18 14.12 13.93 27.050 79.750 217.550 1.53002-7 May 18 14.09 13.78 27.600 77.825 217.000 1.52702-8 May 18 14.03 13.78 26.150 78.800 216.625 1.52702-2 June 18 14.52 14.04 27.950 79.775 221.250 1.56902-5 June 18 14.52 14.12 28.125 82.350 218.625 1.56802-6 June 18 14.53 14.12 28.250 81.275 218.600 1.56602-7 June 18 14.52 14.01 28.750 79.875 218.400 1.56102-8 June 18 14.48 14.01 27.625 80.200 218.350 1.56502-2 July 18 15.00 14.23 28.750 81.575 223.025 1.61702-5 July 18 15.02 14.29 29.150 83.275 220.125 1.61302-6 July 18 15.03 14.29 29.275 83.000 220.450 1.61002-7 July 18 15.02 14.12 29.800 81.425 220.125 1.61102-8 July 18 15.01 14.12 29.075 81.750 219.500 1.61202-2 August 18 15.38 14.45 28.725 82.825 226.175 1.65202-5 August 18 15.40 14.53 28.925 84.525 222.775 1.65202-6 August 18 15.45 14.59 29.925 84.500 223.250 1.65202-7 August 18 15.45 14.37 29.225 82.500 222.875 1.65302-8 August 18 15.45 14.37 29.225 83.075 222.200 1.6550

2-2 September 18 15.57 14.66 28.750 84.350 224.000 1.67402-5 September 18 15.61 14.73 29.250 85.825 224.700 1.67402-6 September 18 15.68 14.84 29.500 85.800 226.050 1.67602-7 September 18 15.70 14.61 29.625 84.000 224.900 1.67802-8 September 18 15.70 14.61 29.500 84.400 224.000 1.68002-2 October 18 15.78 14.83 28.675 85.900 224.525 1.69102-5 October 18 15.78 14.85 29.350 87.375 224.850 1.69102-6 October 18 15.84 14.85 29.350 87.500 226.675 1.69502-7 October 18 15.88 14.84 29.625 85.750 224.750 1.69602-8 October 18 15.91 14.80 29.750 85.950 224.525 1.6990

2-2 November 18 15.75 14.93 28.650 87.500 224.750 1.68902-5 November 18 15.75 14.96 29.400 88.500 224.600 1.69002-6 November 18 15.81 14.96 30.000 89.250 226.850 1.69202-7 November 18 15.86 14.94 30.925 87.000 226.475 1.69202-8 November 18 15.74 14.92 30.450 87.000 224.750 1.69602-2 December 18 15.61 14.94 29.000 88.750 224.425 1.67602-5 December 18 15.61 14.97 29.375 90.500 225.475 1.67602-6 December 18 15.65 14.97 30.250 90.500 225.475 1.67502-7 December 18 15.71 14.94 30.700 88.700 225.600 1.67802-8 December 18 15.71 14.97 30.875 88.500 224.425 1.6800

Interest - Feb. 8 23,778 1,275 3,883 7,265 7,415 27,844

$1.35

$1.45

$1.55

$1.65

$1.75

$1.85

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

40-Pound Block Avg

CME vs AMS

CHEESE REPORTERFebruary 9, 2018 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

02/05/18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,290 89,89802/01/18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,160 90,105Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,130 -207

NATIONAL - FEB. 2: Cheese output is generally heavy as some plants are running at or near full capacity, although other operations are focusing on managing warehouse space and facility needs. Milk availability varies throughout the regions. Some facilities report just enough milk to meet pre-set production schedules. However, some plants are experiencing an abundance of milk. Reported spot milk prices from contacts in the Midwest ranged from $3 under to $1 over Class III. Cheese stocks remain substantial due to heavy milk supplies and heavy production. Demand has increased and a rise in buyer activity has been noted. There is some positivity regarding market tones among cheese contacts, as prices have experienced a notably steady week.

NORTHEAST- FEB. 7: Northeast milk availability is somewhat tight, as the winter condi-tions and feed quality have had an effect on production. Cheese production is active as milk clears into Class III, although some cheese makers are handling just enough milk loads for steady production. Cheese block trading on the spot market this week is steady to sluggish as prices have risen, however many buyers have not purchased from the heavy amount of offers.

Wholesale prices, delivered, dollars per/lb:Cheddar 40-lb blocks: $1.9200 - $2.2050 Process 5-lb sliced: $1.9050 - $2.2550Muenster: $1.4575 - $1.9375 Swiss Cuts 10-14 lbs: $3.3225 - $3.6450

MIDWEST AREA - FEB. 7: Spot and contract milk offers are abundant for cheese mak-ers in the Midwest region. Milk prices are nearing holiday level discounts: ranging from $1 over to $4 under Class III this week. Some cheese plant managers have reined in production in order to manage growing stocks, but plan to add a half day to full workday closer to the spring holiday season. Others are surging on at seven day workweeks for the foreseeable future. Cheese demand varies. Some pizza cheese producers point out seasonally slow sales now that the Super Bowl is history, but expect some buyers to replenish stocks in upcoming weeks. Recent market price increases have assuaged some Midwestern contacts, who feel the market is generally healthier. However, the fairly large block to barrel price gap remains a reminder of potential instability.

Wholesale prices delivered, dollars per/lb: Process 5# Loaf: $1.4125 - $1.7725Brick/Muens 5# Loaf: $1.8275 - $2.2525 Cheddar 40# Block: $1.5550 - $1.9500Monterey Jack 10#: $1.8025 - $2.0075 Blue 5# Loaf: $2.0950 - $3.0825Mozzarella 5-6# (LMPS): $1.6275 - $2.5675 Grade A Swiss 6-9#: $2.8400 - $2.9575

WEST - FEB. 7: Western cheese production is ongoing with the bounteous supplies of milk available to producers. A number of Class II processors are clearing more milk, releas-ing some of the pressure off of cheese producers. Overall, the stocks of cheese in the West are balanced to slightly down depending on the manufacturing plants. However, cheese is more than sufficient to meet all end users’ needs. There are mixed reports concerning the current demand for cheese. Some industry contacts suggest that the interest from interna-tional and domestic markets is trending up, possibly due to lower prices. On the other hand, other contacts say that sales have slowed down in the days following the Super Bowl, resulting in some manufacturers having to update their Italian cheese production forecasts.

Wholesale prices delivered, dollars per/lb: Process 5# Loaf: $1.4000 - $1.6575Cheddar 40# Block: $1.5875 - $2.0325 Cheddar 10# Cuts: $1.7675 - $1.9875Monterey Jack 10#: $1.7775 - $1.9375 Grade A Swiss 6-9#: $2.9000 - $3.3300

FOREIGN -TYPE CHEESE - FEB. 7: In the European Union (EU), the cheese market remained competitive because of lower price levels. Reports suggest that the strong value of the euro against the US dollar does not have much effect on competitiveness. In 2017, cheese was the most exported dairy product in the EU, with an increase in exports of 4 per-cent compared to 2016. This is mainly the result of increased demand from Japan and Chile. Cheese production in the EU is active as milk supplies are plentiful. Inventories of cheese are currently similar to that of last week. In Germany, stocks are at a normal level for the season. Selling prices, delivered, dollars per/lb: Imported Domestic

Blue: $2.6400 - 5.2300 $1.9725 - 3.4600Gorgonzola: $3.6900 - 5.7400 $2.4800 - 3.1975Parmesan (Italy): 0 $3.3625 - 5.4525Romano (Cows Milk): 0 $3.1625 - 5.3125Sardo Romano (Argentine): $2.8500 - 4.7800 0Reggianito (Argentine): $3.2900 - 4.7800 0Jarlsberg (Brand): $2.9500 - 6.4500 0Swiss Cuts Switzerland: 0 $3.3600- 3.6825Swiss Cuts Finnish: $2.6700- 2.9300 0

NATIONAL - FEB. 2: Cream into but-ter production is available to abundant. But-ter output is generally heavy. Churns are mostly active as manufacturers are working on burning through their cream supplies. However, some producers are only churning to meet already set orders. Contacts report growing inventories as preparation for the upcoming spring holidays. Demand is meet-ing seasonal expectations. Bulk butter prices range from 2 cents under to 9 cents over the market, based on the CME Group with vari-ous time periods and averages used. The butter market tone is resilient and showing signs of firming.

NORTHEAST - FEB. 7: Cream for but-ter production is available. However, issues regarding transportation have hindered cream distribution. Butter production is gen-erally active. Demand for unsalted butter has increased. Sales of bulk butter in domestic markets are 5 to 7 cents over the market of the CME Group, with various time peri-ods and averages used. New crop butter is eligible for trading at the CME on March 1, 2018. Consequently, butter that will not qualify after the deadline is depressing the market. Manufacturers are pushing out large quantities of stock. Some buyers are holding off on purchases, waiting for prices to drop. After ending last week strong, prices moved lower in what appears to be an unsettled market.

CENTRAL - FEB. 7: Some butter pro-ducers are churning/microfixing at active rates, while packing butter stocks away for the spring rush. Butter demand, in cer-tain cases, has increased from last month. Other producers suggest sales continue to meet seasonally downplayed expectations. Unsalted butter inventories are light, although buyers’ interests are solid. Cream suppli-ers from every region are making offers to Central butter producers. There were some Class IV cream multiples reported as low as flat market, but a majority of cream multiples headed for the churns ranged from 1.10 to 1.15 f.o.b. CME butter prices are at their lowest point since April 2017. That being said, Central region butter contacts main-tain that butter is in a steadier position than other dairy commodities. Prices ranged from 2 cents to 9 cents over the CME average.

WEST - FEB. 7: Western butter production is at or near full capacity. Butter makers have not blenched in the face of plentiful cream supplies and favorable cream prices. Ample cream is finding its way to the churn. Some market participants say ice cream makers are also starting to get in on the action, compet-ing for the cream earlier in the season than usual. Butter demand is picking up ahead of the spring holidays. Some industry contacts report seeing rapid inventory turnover and promotions at retailers. Inventories are grow-ing along seasonal patterns.

ORGANIC DAIRY - RETAIL OVERVIEW

The national weighted average advertised conventional milk price for half gallons, $2.00, increased 73 cents from a week ago. Milk gallons averaged $2.33, down 55 cents. Organic half gallon prices averaged $3.63, down 33 cents from one week ago. The resulting organic-conventional half gallon price spread is $1.63. Total conventional cheese advertisements decreased 17 percent and organic cheese advertisements decreased 8 percent compared to last week. The weighted average price of conventional 8 ounce block cheese was $2.10, compared to $3.91 for organic 8 ounce blocks, an organic premium of $1.81. The weighted average price of conventional 8 ounce shred cheese was $2.16, compared to $4.20 for organic 8 ounce shreds, an organic premium of $2.04. The U.S. average conventional one pound butter price was $3.56 this period, down 23 cents from a week ago. TheU.S. average organic one pound butter price was $5.22 this period, down 18 cents from a week ago. The resultingorganic butter premium is $1.66. Advertisement numbers for organic yogurt in 4-6 ounce containers increased by 268 percent, the largest percentage increase for any dairy item. The weighted average advertised price for organic yogurt in 4-6 ounce containers is $.90.

National Weighted Retail Avg Price: Butter 1 lb: $5.22Cheese 8 oz block: $3.91Cheese 8 oz shred: $4.20Cottage Cheese 16 oz $3.99Sour Cream 16 oz $2.80

Yogurt 4-6 oz: $0.90Yogurt 32 oz: $3.34Greek Yogurt 4-6 oz: $1.00Milk ½ gallon: $3.63Milk gallon: $7.13

RETAIL PRICES - CONVENTIONAL DAIRY - FEBRUARY 9Commodity

Butter 1#

Cheese 8 oz block

Cheese 1# block

Cheese 2# block

Cheese 8 oz shred

Cheese 1# shred

Cottage Cheese

Cream Cheese

Ice Cream 48-64 oz

Flavored Milk ½ gallon

Flavored Milk gallon

Milk ½ gallon

Milk gallon

Sour Cream 16 oz

Yogurt (Greek) 4-6 oz

Yogurt (Greek) 32 oz

Yogurt 4-6 oz

Yogurt 32 oz

US NE SE MID SC SW NW

3.56 3.81 3.56 2.51 3.03 3.61 3.55

2.10 2.19 2.12 1.87 2.03 2.34 2.03

3.67 2.99 2.99 3.99 3.77 4.99 3.98

8.25 9.99 6.99

2.16 2.21 2.07 1.98 2.28 2.37 2.00

3.59 2.50 3.99 3.50 3.99 3.98

1.96 2.21 1.94 1.40 1.77 1.64

1.85 2.04 2.13 1.37 1.67 1.80 1.57

3.20 2.64 3.49 3.11 3.32 2.92 3.04

2.33 1.88 2.42 2.00

2.65 3.49

2.00 1.46 1.84 2.99

2.33 3.49 2.68 2.09 2.24 2.50 1.91

1.67 1.80 1.72 1.35 1.69 1.77 1.88

.97 .98 .97 .94 .96 .94 .85

4.07 4.06 3.99 3.75 4.36 3.00

.50 .51 .49 .50 .49 .56 .45

2.05 1.98 2.00 2.50

Butter 1# 3.56 3.81 3.56 2.51 3.03 3.61 3.55

Cheese 1# block 3.67 2.99 2.99 3.99 3.77 4.99 3.98

Cheese 8 oz shred 2.16 2.21 2.07 1.98 2.28 2.37 2.00

Cottage Cheese 1.96 2.21 1.94 1.40 1.77 1.64

Ice Cream 48-64 oz 3.20 2.64 3.49 3.11 3.32 2.92 3.04

Flavored Milk gallon 2.65 3.49

Milk gallon 2.33 3.49 2.68 2.09 2.24 2.50 1.91

Yogurt (Greek) 4-6 oz .97 .98 .97 .94 .96 .94 .85

Yogurt 4-6 oz .50 .51 .49 .50 .49 .56 .45

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

NATIONAL - CONENTIONAL DAIRY PRODUCTS

NONFAT DRY MILK - FEBRUARY 8NDM - CENTRAL: Low/medium heat nonfat dry milk (NDM) prices moved up on the range and mostly price series. Low/medium heat NDM spot market activity continues to gain traction, along with other dry powder markets in the Central region. As prices go up in the face of heavy inven-tories and continual production, some con-tacts suggest the uptick is cursory and/or cyclical. That being said, low/medium heat NDM continues to defy bearish mar-ket expectations. High heat NDM prices shifted lower on the top of the range, while remaining steady on the bottom. High heat NDM trading was quiet, as offers are out-pacing completed transactions. Central high heat NDM inventories are mixed.

NDM - EAST: Prices for low/medium heat NDM are higher in an unsettled mar-ket booming with questions, as the surge in current prices appear to circumvent fun-damentals to some. In anticipation of a tilt, buyers are reluctant to make acquisi-tions and the market is somewhat quiet. Hence, demand is slow to moderate, and mostly for replacement needs. While not

at capacity, the pace of NDM production is steady. Low/medium heat NDM producers want to keep supplies light, but in all likeli-hood, stocks are largely available. Prices for high heat NDM are steady to lower. Most of manufacturers’ high heat inven-tories are committed, with little to none available for the spot market.

NDM - WEST: NDM futures values for the rest of Q1 and Q2 are slightly up. With these increases in NDM cash prices, some buyers/end users are puzzled about the economic logic of the NDM market since, according to them, the current NDM supply is well above their demands and, therefore, prices should be declining. Conversely, some NDM producers think that prices are ramping up prompted by an increase in the interest from the bakery sector. Moreover, in the hope that NDM values will continue to rise, some manufacturers continue stor-ing heavy volumes of NDM in order to sell them in the near future at higher prices. Therefore, in some areas of the region, NDM supplies are less available for the buyer to obtain in the spot market.

WHOLESALE BUTTER MARKETS


CME CASH PRICES - FEBRUARY 5 - 9, 2018Visit www.cheesereporter.com for daily prices

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

MONDAY $1.3650 $1.5175 $2.0800 $0.7375 February 5 (+4) (+5½) (-5½) (+1½)

TUESDAY $1.3700 $1.5175 $2.0850 $0.7425 February 6 (+½) (NC) (+½) (+½)

WEDNESDAY $1.3500 $1.5200 $2.0750 $0.7350 February 7 (-2) (+¼) (-1) (-¾)

THURSDAY $1.3500 $1.5200 $2.0700 $0.7375 February 8 (NC) (NC) (-½) (+¼)

FRIDAY $1.3600 $1.5100 $2.0275 $0.7350February 9 (+1) (-1) (-4¼) (-¼)

Week’s AVG $1.3590 $1.5170 $2.0675 $0.7375 Change (+0.0375) (+0.0535) (-0.0630) (+0.0280)

Last Week’s $1.3215 $1.4635 $2.1305 $0.7095AVG

2017 AVG $1.6970 $1.6360 $2.1550 $0.9465Same Week

MARKET OPINION - CHEESE REPORTERCheese Comment: Four cars of blocks were sold Monday, all on offers, the last at $1.5100; an unfilled bid for 1 car at $1.5175 then set the price. Tuesday’s block market activity was limited to uncovered offers of 9 cars of blocks at prices between $1.5400 and $1.6000, which left the price unchanged at $1.5175. One car of blocks was sold Wednesday on a bid at $1.5200, which raised the price. There were no block sales on Thursday, only an unfilled bid for 1 car at $1.5000 and uncov-ered offers of 5 cars at prices between $1.5200 and $1.5500, which left the price unchanged at $1.5200. Four cars of blocks were sold Friday, the last on a bid at $1.5100, which lowered the price. The barrel price increased Monday on a bid-based sale of 1 car at $1.3650, rose Tuesday on a bid-based sale of 1 car at $1.3700, fell Wednesday on an offer-based sale of 1 car at $1.3500, then rose Friday on an offer-based sale at $1.3600.

Butter Comment: The butter price fell Monday on an offer-based sale of 1 car at $2.0800, increased Tuesday on an unfilled bid for 1 car at $2.0850, declined Wednesday on a bid-based sale of 1 car at $2.0750, fell Thursday on an uncovered offer of 1 car at $2.0700, and dropped Friday on an offer-based sale at $2.0275.

WHEY MARKETS - FEBRUARY 5 - 9, 2018RELEASE DATE - FEBRUARY 8, 2018

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

Buttermilk Powder: Central & East: .6500 (+1½) – .8000 (-1) West: .6800 (NC) – .8000 (NC) Mostly: .7000 (NC) – .7300 (NC)

Casein: Rennet: 2.2000 (+11½) – 2.2800 (+13¾) Acid: $2.9900 (+4) - $3.3400 (+4)

Dry Whey—Central (Edible): Nonhygroscopic: .1900 (+1) – .2800 (-1) Mostly: .2200 (+2) – .2600 (-1) Dry Whey–West (Edible): Nonhygroscopic: .2000 (NC) – .3100 (+1) Mostly: .2200 (NC) – .2600 (NC)

Dry Whey—NE: .2500 (NC) – .3100 (-¼)

Lactose—Central and West: Edible: .1700 (-1) – .3500 (NC) Mostly: .1900 (NC) –.2450 (NC)

Nonfat Dry Milk —Central & East: Low/Medium Heat: .6900 (+4) – .7650 (+1½) Mostly: .7100 (+2) –.7400 (+1½) High Heat: .8500 (NC) – .9400 (-4)

Nonfat Dry Milk —Western: Low/Medium Heat: .6400 (NC) – .7875 (+2¾) Mostly: .7000 (+2) –.7500 (+2) High Heat: .8500 (NC) – 1.0000 (+5½)

California Weighted Average NFDM: Price Total Sales February 2 $0.7195 9,665,520 January 26 $0.7193 10,094,866 Whey Protein Concentrate—Central and West: Edible 34% Protein: .5900 (NC) – .9400 (NC) Mostly: .6700 (NC) – .7800 (NC)

Whole Milk—National: 1.4100 (+6) – 1.4800 (-2) Visit www.cheesereporter.com for dairy and historical cheese, butter, and whey prices


FOR MORE INFORMATION, VISIT US ON THE WEB AT

www.johnsonindint.com

From one-way, two-way, and three-way cutting machines to custom cutting systems designed for unique applications, Johnson Industries has delivered exceptional reduction equipment for over three decades.

Robust and reliable cuttersdesigned to suit your production

CUTTINGSYSTEMS

Atalanta Acquires(Continued from p. 1)

ers of specialty cheese to the US,” said Tom Gellert, Atalanta’s presi-dent. “Together with Atalanta’s own rich history, we have a unique opportunity to solidify our position as leaders in the specialty cheese and deli categories.”

Atalanta and The Gellert Global Group said they are looking forward to gaining great synergies

from ANCO’s network of strong relationships with suppliers, cus-tomers, and the addition of a great team of people.

Atalanta Corporation was founded as Atalanta Trading Corporation in 1945, and started importing cheese in 1953.

Today, the company imports cheese from over 50 different countries.

For more information, visit www.atalantacorp.com.

USDA Lowers 2018 Milk Production Forecast, Also Reduces Cheese, Butter Price ForecastsWashington—The US Depart-ment of Agriculture (USDA), in its monthly supply-demand esti-mates released Thursday, lowered its milk production forecast for this year while also lowering its price forecasts for cheese, butter and milk.

The milk production forecast is reduced from last month on expec-tations of slower growth in milk per cow. USDA now expects 2018 milk production to reach a record 218.7 billion pounds, down 100 million pounds from last month’s forecast but up 3.3 billion pounds from 2017’s record output.

USDA’s 2018 fat basis export and import forecasts are unchanged from last month. On a skim-solids basis, the import forecast is raised slightly while the export forecast is raised on strong global demand for skim milk powder, lactose, and whey products.

Annual product price forecasts for cheese and butter are low-ered from last month as demand remains relatively weak.

USDA now expects cheese prices to average $1.5300 to $1.6000 per pound ths year, down from 2017’s average of $1.6344

per pound; and butter prices to average $2.1950 to $2.2950 per pound, down from 2017’s average of $2.3303 a pound.

No changes were made to USDA’s product price forecasts for nonfat dry milk and dry whey. NDM prices are projected to aver-age 71.5 to 77.5 cents per pound this year, down from last year’s average of 86.66 cents per pound; and dry whey prices are projected to average 27.0 to 30.0 cents per pound, down from last year’s aver-age of 44.37 cents per pound.

The Class III price forecast is lowered, to $14.20 to $14.90 per hundredweight, on the reduced cheese price projection, while the Class IV price projection is down, to $13.35 to $14.15 per hundred, on the lower butter price fore-cast. The all milk price forecast is reduced to $15.70 to $16.40 per hundred.

This month’s 2017/18 US corn outlook is for increased exports and reduced stocks.

The season-average corn price received by producers is projected at $3.30 per bushel, up five cents at the midpoint.

The 2017/18 US soybean out-look is for reduced exports and increased ending stocks. The US season-average soybean price range for 2017/18 is projected at $8.90 to $9.70 per bushel, unchanged at the midpoint.

Documents

W o r l d ' s DairyI W S l y CHEESE REPORTER 9, 2018.pdf · cheese importers in the US. The company imports a product line from more than 20 different countries. ANCO sources directly