since 1876 w s l y cheese reporter 30, 2018.pdf · february of 2015, when califor-nia dairies,...

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t Standards Of Identity, Sodium Among Keys In New FDA Nutrition Innovation Strategy S e r v i n g t h e W o r l d ' s D a i r y I n d u s t r y W e e k l y Since 1876 C HEESE REPORTER Vol. 142, No. 41 • Friday, March 30, 2018 • Madison, Wisconsin The USDA then issued a rec- ommended decision on a Califor- nia federal order in February of 2017. The final decision continues to find, based on the evidentiary record, a federal order for Califor- nia would provide more orderly marketing conditions in the mar- keting area, and therefore promul- gation of a California federal order is warranted. The final decision also contin- ues to find that the classified prices proposed for a California federal order will provide producers with a minimum producer blend price more reflective of the national market for manufactured products and the utilization of the local Cal- ifornia market. Taken together, handler and producer prices reflective of the national market in which manu- factured dairy products are sold will ensure orderly marketing con- ditions in California, USDA said. Unlike the CSO, a Califor- nia federal order would have the authority to regulate interstate commerce, USDA pointed out. • See CA Final Decision, p. 7 USDA Releases Final Decision To Establish California Federal Order USDA Proposes To Adopt, On Emergency Basis, Temporary Assessment On Class I Milk In Florida Order Washington, DC—The USDA’s Agricultural Marketing Service (AMS) this week proposed to adopt, on an emergency basis, amendments to the Florida federal milk marketing order that would implement a temporary assessment on Class I milk. Revenues collected through the assessment would be disbursed to handlers and producers who incurred extraordinary marketing losses and expenses due to Hur- ricane Irma, which caused con- siderable market disruptions last September. Last November, five dairy coop- eratives — Southeast Milk, Inc., Dairy Farmers of America, Premier Milk, Maryland and Virginia Milk Producers Cooperative Associa- tion, and Lone Star Milk Produc- ers — asked USDA to hold an emergency hearing to seek limited reimbursement for handlers on the Florida order who experienced “extraordinary losses” from Hurri- cane Irma. USDA held a hearing on the request in December. The record of this proceeding “clearly dem- onstrates” that Hurricane Irma impacted the entire Florida mar- keting area, USDA said. The hur- ricane’s track went through the entire state, resulting in significant road closures and widespread, pro- longed electrical outages. The electrical outages caused not • See Florida Decision, p. 6 Washington—Scott Gottlieb, commissioner of the US Food and Drug Administration (FDA), on Thursday announced the FDA Nutrition Innovation Strategy, which will take a fresh look at what can be done to reduce preventable death and disease related to poor nutrition. FDA plans to use its tools and authorities “to create better ways of communicating nutri- tion information to consumers so they can be empowered to make good choices,” Gottlieb said in remarks prepared for delivery at the National Food Policy Confer- ence here. Key activities currently planned as part of FDA’s new Nutrition Innovation Strategy include modernizing standards of identity, implementing the Nutrition Facts label and menu labeling, reducing sodium, mod- ernizing claims, and modernizing ingredient labels. Standards of identity “continue to serve an important purpose, letting consumers know what they’re buying meets a certain standard in terms of what’s in it,” Gottlieb said. “But it’s important that we take a fresh look at exist- ing standards of identity in light of marketing trends and the latest nutritional science. “For example, the standards of identity for certain cheeses don’t always permit the use of salt substitutes, which could be used to lower the sodium content of cheese,” Gottlieb continued. “And we’ve been asked to mod- ernize the standard of identity for yogurt to support the many inno- See New FDA Strategy, p. 4 Perfect Day Receives Patent On Invention For Making Animal-Free Dairy Substitutes Washington—The US Patent and Trademark Office (USPTO) this week awarded a patent to an invention that’s directed to dairy substitutes, methods of manufac- turing dairy substitutes, and com- positions comprising animal-free milkfats and proteins for food applications, such as cheese, but- ter, milk, yogurt and cream. The inventors are Ryan Pan- dya, Perumal Gandhi, Shaowen Ji, Derek Beauchamp and Louis Hom. The patent was assigned to Perfect Day, Inc. Pandya and Gandhi are Perfect Day’s co-founders, while Pandya is the company’s CEO. The invention is based on the discovery that only a subset of components in mammal-produced • See Animal-Free, p. 5 $4.61 $4.92 $4.61 $5.02 $5.60 $5.94 $5.54 $5.48 $5.37 $4.97 $5.08 2008 10 12 14 16 2018 Average Retail Cheddar Prices February 2008 - 2018 Price per pound Referendum To Be Held Apr. 2-May 5; Public Meeting To Be Held Apr. 10 In CA Washington—USDA’s Agricul- tural Marketing Service (AMS) today released its long-awaited final decision to establish a federal milk marketing order (FMMO) for the state of California. Currently, the California dairy industry is regulated by a Cali- fornia State Order (CSO) that is administered and enforced by the California Department of Food and Agriculture (CDFA). The final decision proposes adoption of a California federal order incorporating the entire state of California and would adopt the same dairy product classifica- tion and pricing provisions used throughout the current federal order system. Also, the proposed Califor- nia federal order provides for the recognition of producer quota as administered by the CDFA. USDA will now conduct a ref- erendum among California dairy producers to determine whether they support the proposed federal order. The referendum will be held from Apr. 2 through May 5, 2018. USDA will mail ballot materials to all known eligible dairy produc- ers supplying milk to the proposed marketing area. The federal order would become effective if approved by two-thirds of the voting producers, or by pro- ducers of two-thirds of the milk represented in the voting process. Also, AMS will conduct a pub- lic meeting on Tuesday, Apr. 10, at the Clovis Veterans Memorial District Building in Clovis, CA, to explain and answer questions relating to how the proposed Cali- fornia federal order contained in the final rule would, if adopted, operate, and review the producer referendum process. This proceeding dates back to February of 2015, when Califor- nia Dairies, Inc., Land O’Lakes and Dairy Farmers of America requested that USDA hold a pub- lic hearing to consider establishing a federal order for California. That hearing took place over 40 days in September October and Novem- ber of 2015.

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Page 1: Since 1876 W S l y CHEESE REPORTER 30, 2018.pdf · February of 2015, when Califor-nia Dairies, Inc., Land O’Lakes and Dairy Farmers of America requested that USDA hold a pub-

t Standards Of Identity, Sodium Among Keys In New FDA Nutrition Innovation Strategy

Serv

ing

theWorld's Dairy Industry W

eekly

Since 1876

CHEESE REPORTER Vol. 142, No. 41 • Friday, March 30, 2018 • Madison, Wisconsin

The USDA then issued a rec-ommended decision on a Califor-nia federal order in February of 2017.

The final decision continues to find, based on the evidentiary record, a federal order for Califor-nia would provide more orderly marketing conditions in the mar-keting area, and therefore promul-gation of a California federal order is warranted.

The final decision also contin-ues to find that the classified prices proposed for a California federal order will provide producers with a minimum producer blend price more reflective of the national market for manufactured products and the utilization of the local Cal-ifornia market.

Taken together, handler and producer prices reflective of the national market in which manu-factured dairy products are sold will ensure orderly marketing con-ditions in California, USDA said.

Unlike the CSO, a Califor-nia federal order would have the authority to regulate interstate commerce, USDA pointed out.

• See CA Final Decision, p. 7

USDA Releases Final Decision To Establish California Federal Order

USDA Proposes To Adopt, On Emergency Basis, Temporary Assessment On Class I Milk In Florida OrderWashington, DC—The USDA’s Agricultural Marketing Service (AMS) this week proposed to adopt, on an emergency basis, amendments to the Florida federal milk marketing order that would implement a temporary assessment on Class I milk.

Revenues collected through the assessment would be disbursed to handlers and producers who incurred extraordinary marketing losses and expenses due to Hur-ricane Irma, which caused con-siderable market disruptions last September.

Last November, five dairy coop-eratives — Southeast Milk, Inc., Dairy Farmers of America, Premier Milk, Maryland and Virginia Milk Producers Cooperative Associa-tion, and Lone Star Milk Produc-ers — asked USDA to hold an emergency hearing to seek limited reimbursement for handlers on the Florida order who experienced “extraordinary losses” from Hurri-cane Irma.

USDA held a hearing on the request in December. The record of this proceeding “clearly dem-onstrates” that Hurricane Irma impacted the entire Florida mar-keting area, USDA said. The hur-ricane’s track went through the entire state, resulting in significant road closures and widespread, pro-longed electrical outages.

The electrical outages caused not

• See Florida Decision, p. 6

Washington—Scott Gottlieb, commissioner of the US Food and Drug Administration (FDA), on Thursday announced the FDA Nutrition Innovation Strategy, which will take a fresh look at what can be done to reduce preventable death and disease related to poor nutrition.

FDA plans to use its tools and authorities “to create better ways of communicating nutri-tion information to consumers so they can be empowered to make good choices,” Gottlieb said in remarks prepared for delivery at the National Food Policy Confer-ence here.

Key activities currently planned as part of FDA’s new Nutrition Innovation Strategy include modernizing standards of identity, implementing the Nutrition Facts label and menu

labeling, reducing sodium, mod-ernizing claims, and modernizing ingredient labels.

Standards of identity “continue to serve an important purpose, letting consumers know what they’re buying meets a certain standard in terms of what’s in it,” Gottlieb said. “But it’s important that we take a fresh look at exist-ing standards of identity in light of marketing trends and the latest nutritional science.

“For example, the standards of identity for certain cheeses don’t always permit the use of salt substitutes, which could be used to lower the sodium content of cheese,” Gottlieb continued. “And we’ve been asked to mod-ernize the standard of identity for yogurt to support the many inno-

See New FDA Strategy, p. 4

Perfect Day Receives Patent On Invention For Making Animal-Free Dairy SubstitutesWashington—The US Patent and Trademark Office (USPTO) this week awarded a patent to an invention that’s directed to dairy substitutes, methods of manufac-turing dairy substitutes, and com-positions comprising animal-free milkfats and proteins for food applications, such as cheese, but-ter, milk, yogurt and cream.

The inventors are Ryan Pan-dya, Perumal Gandhi, Shaowen Ji, Derek Beauchamp and Louis Hom. The patent was assigned to Perfect Day, Inc. Pandya and Gandhi are Perfect Day’s co-founders, while Pandya is the company’s CEO.

The invention is based on the discovery that only a subset of components in mammal-produced

• See Animal-Free, p. 5

$4.6

1$4

.92

$4.6

1$5

.02

$5.6

0$5

.94

$5.5

4$5

.48

$5.3

7$4

.97 $5

.08

2 0 0 8 1 0 1 2 1 4 1 6 2 0 1 8

Average Retail Cheddar PricesFebruary 2008 - 2018Price per pound

Referendum To Be Held Apr. 2-May 5; Public Meeting To Be Held Apr. 10 In CAWashington—USDA’s Agricul-tural Marketing Service (AMS) today released its long-awaited final decision to establish a federal milk marketing order (FMMO) for the state of California.

Currently, the California dairy industry is regulated by a Cali-fornia State Order (CSO) that is administered and enforced by the California Department of Food and Agriculture (CDFA).

The final decision proposes adoption of a California federal order incorporating the entire state of California and would adopt the same dairy product classifica-tion and pricing provisions used throughout the current federal order system.

Also, the proposed Califor-nia federal order provides for the recognition of producer quota as administered by the CDFA.

USDA will now conduct a ref-erendum among California dairy producers to determine whether

they support the proposed federal order. The referendum will be held from Apr. 2 through May 5, 2018. USDA will mail ballot materials to all known eligible dairy produc-ers supplying milk to the proposed marketing area.

The federal order would become effective if approved by two-thirds of the voting producers, or by pro-ducers of two-thirds of the milk represented in the voting process.

Also, AMS will conduct a pub-lic meeting on Tuesday, Apr. 10, at the Clovis Veterans Memorial District Building in Clovis, CA, to explain and answer questions relating to how the proposed Cali-fornia federal order contained in the final rule would, if adopted, operate, and review the producer referendum process.

This proceeding dates back to February of 2015, when Califor-nia Dairies, Inc., Land O’Lakes and Dairy Farmers of America requested that USDA hold a pub-lic hearing to consider establishing a federal order for California. That hearing took place over 40 days in September October and Novem-ber of 2015.

Page 2: Since 1876 W S l y CHEESE REPORTER 30, 2018.pdf · February of 2015, when Califor-nia Dairies, Inc., Land O’Lakes and Dairy Farmers of America requested that USDA hold a pub-

CHEESE REPORTERPage 2 March 30, 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

“the Nutrition Facts label itself is a flawed, if not failed, piece of information.”

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

Front-Of-Package Labeling Isn’t The Answer To AnythingThe idea of front-of-package nutri-tion labeling has been around for quite a few years now, and is actu-ally gaining momentum in at least a couple of countries. But front-of-package nutrition labeling won’t do what its supporters claim it will do, and will probably harm dairy consumption along the way.

It’s been more than a decade since the Center for Science in the Public Interest petitioned the US Food and Drug Administration to create a front-of-package labeling system. At this point, that petition hasn’t gone very far, if anywhere.

Meanwhile, just last week, Dr. Peter G. Lurie, CSPI’s president, criticized President Trump’s trade negotiators for using the North American Free Trade Agreement modernization talks “as an excuse to pour cold water on front-of-package labeling.” According to Lurie, the New York Times has “convincingly demonstrated” that the US Trade Representative’s hostility to front-of-package label-ing “has already had a chilling effect throughout the Americas.”

That’s a good thing, actually, for several reasons. As Lurie points out, NAFTA member Canada is currently developing its own front-of-package nutrition labeling sys-tem. As we reported back in our Feb. 16th issue, Health Canada is accepting comments on the front-of-package nutrition labeling through Apr. 26, 2018.

What that agency is proposing is a new symbol on food; the symbol would provide a visual cue that a food is high in nutrients of public health concern, such as saturated fat, sodium or sugars. Not surpris-ingly, the proposal drew criticism from both the Dairy Processors Association of Canada and from Dairy Farmers of Canada.

There are at least two major problems with front-of-package nutrition labeling, and those two problems are closely related. First, as FDA noted in industry guidance released in 2009, the agency’s own research has found that with front-of-package labeling, consumers are

less likely to check the Nutrition Facts label on the information panel of foods. And no matter what type of information would be required in any front-of-package labeling, it wouldn’t be as detailed as the information in that Nutri-tion Facts label.

Second, the Nutrition Facts label itself is a flawed, if not failed, piece of information. It emphasizes nutrients to avoid, such as satu-rated fat, dietary cholesterol and sodium, while ignoring or down-playing nutrients that actually provide health benefits, such as protein (which is listed below the aforementioned saturated fat, cho-lesterol and sodium), phosphorus and magnesium (neither of which is mandatory; both are provided by dairy products).

CSPI and many other health groups are big fans of the Nutri-tion Facts label. Last November, some 20 public health and con-sumer groups called on FDA not to delay the updates to the Nutrition Facts labels.

Those updates included, among other things, putting the calorie content of foods in larger and bolder type, putting serving size and servings per container in larger and/or bolder type, using updated Daily Values for nutrients, listing added sugars, and requiring the listing of Vitamin D and potas-sium.

Among the groups urging FDA to maintain the original timeline for requiring updates to the Nutri-tion Facts label was the American Heart Association, which said the rise in obesity rates and the preva-lence of heart disease, stroke, dia-betes, and cancer “underscore the need to provide consumers with up-to-date and easy to understand nutrition information as soon as possible.”

Keep in mind that obesity rates and the prevalence of type 2 dia-betes have actually increased since the Nutrition Facts label became mandatory on most food pack-ages back in the mid-1990s. So are we really to believe that the

changes being made to the Nutri-tion Facts panel will help reverse those trends?

FDA wisely decided to drop the “Calories from Fat” line from the Nutrition Facts label because, as FDA points out, research shows the type of fat consumed is more important than the amount. FDA now requires the listing of total fat, saturated fat and trans fat (which wasn’t required until about a decade or so ago), but it doesn’t seem like the science is anywhere near settled when it comes to dietary fat in general or saturated fat specifically.

As noted earlier, 20-plus years of emphasizing fat on the Nutri-tion Facts label has resulted in higher levels of obesity and type 2 diabetes, so why would anyone think putting some sort of “high in fat” warning on the front of food packages will provide any public health benefit?

Indeed, if anything, the sci-ence regarding dietary fats is far less “settled” than it was when the Nutrition Labeling and Education Act (which mandated nutrition labeling on most packaged food) was passed by Congress back in 1990. Today, numerous studies and books, including Nina Tiecholz’s highly regarded bestseller, The Big Fat Surprise, have cast doubts on all the anti-fat rhetoric of the past 60-plus years.

Related to that point, while organizations like CSPI have been waging war on sodium for decades, the science on sodium and its health impacts is also far from settled. Several studies have found that low sodium consumption can be just as harmful as high sodium consumption, so why should high-sodium foods carry a front-of-pack-age warning?

The science is far from settled on the nutritional importance of the current Nutrition Facts label. So health experts should fix what’s on the back of food labels (and make meaningful adjustments to what’s required) before putting warnings on the front of food packages.

Page 3: Since 1876 W S l y CHEESE REPORTER 30, 2018.pdf · February of 2015, when Califor-nia Dairies, Inc., Land O’Lakes and Dairy Farmers of America requested that USDA hold a pub-

CHEESE REPORTERMarch 30, 2018 Page 3

Incidence Of Foodborne Infections Increased In 2017 For Several Pathogens: CDC ReportAtlanta, GA—Compared with 2014-2016, the 2017 incidence of infections with Campylo-bacter, Listeria, non-0157 Shiga toxin-producing Escherichia coli (STEC), Yersinia, Vibrio and Cyclospora increased, according to a new report from the US Centers for Disease Control and Preven-tion (CDC).

The 10 US sites of the Food-borne Diseases Active Surveillance Network (FoodNet) monitor cases of laboratory-diagnosed infections caused by nine pathogens trans-mitted commonly through food. The new CDC report, which was published in the CDC’s March 23 Morbidity and Mortality Weekly Report, summarizes preliminary 2017 data and describes changes in incidence since 2006.

In 2017, FoodNet reported 24,484 infections, 5,677 hospital-izations, and 122 deaths.

FoodNet — a collaboration among CDC, the US Food and Drug Administration (FDA), USDA’s Food Safety and Inspection Ser-vice (FSIS), and 10 state health departments — conducts active, population-based surveillance for laboratory-diagnosed infections caused by Campylobacter, Cryp-tosporidium, Cyclospora, Listeria, Salmonella, STEC, Shigella, Vib-rio and Yersinia in 10 sites that account for approximately 15 per-cent of the US population.

The increased incidences of pathogens for which testing was previously limited might have resulted from the increased use and sensitivity of culture-independent diagnostic tests (CIDTs), which can improve incidence estimates.

CIDTs also challenge the abil-ity of authorities to find outbreaks and monitor disease trends because they do not provide certain infor-mation, such as subtype and anti-microbial susceptibility, needed to characterize organisms that cause infections. This information can be obtained only if a CIDT-posi-tive specimen is cultured.

Compared with 2006-08, the 2017 incidence of infec-tions with Salmonella serotypes Typhimurium and Heidelberg declined, and the incidence of serotypes Javiana, Infantis, and Thompson increased. New regu-latory requirements that include enhanced testing of poultry prod-ucts from Salmonella might have contributed to the decreases.

The declines in two Salmonella serotypes and STEC 0157 infec-tions provide supportive evidence that targeted control measures are effective, the CDC stated. On the other hand, the marked increases in infections caused by some Sal-monella serotypes provide an opportunity to investigate food and non-food sources of infection

and to design specific interven-tions.

In 2017, the incidence of infec-tion per 100,000 population was highest for Campylobacter (19.2) and Salmonella (16.0), followed by Shigella (4.3), STEC (4.2), Cryptosporidium (3.7), Yersinia (1.0), Vibrio (0.7), Listeria (0.3), and Cyclospora (0.3). The per-centage of CIDT-positive-only infections, including those that were culture-negative and those not tested by culture, were Yersinia (51 percent), Campylobacter (36 percent), Shigella (31 percent), Vibrio (29 percent), STEC (27 percent), Salmonella (9 percent) and Listeria (1 percent).

Compared with incidence during 2014-16, the 2017 incidence was significantly higher for Cyclospora (489 perent increase), Yersinia (166 percent increase), Vibrio (54 percent increase), STEC (28 per-cent increase), Listeria (26 percent increase), and Campylobacter (10 percent increase).

Bacterial infections diagnosed by CIDT increased 96 percent overall compared with those diag-nosed during 2014-16. Reflex cul-ture was attempted on 71 percent of CIDT-positive specimens, ranging from 63 percent for campylobacter to 100 percent for Listeria. Among specimens on which a reflex cul-ture was performed, the percentage of positive cultures ranged from 38 percent for Vibrio to 90 percent for Salmonella.

“This data shows we need to do more to protect Americans from unsafe food,” said Thomas Gremil-lion, director of the Consumer Fed-eration of America’s Food Policy Institute. “The steep increase in campylobacteriosis is particularly concerning.”

The CDC said the findings in its report are subject to at least two limitations. First, the changing diagnostic landscape makes inter-pretation of incidence and trends difficult. Increases in reported inci-dence might be due to some health care providers being more likely to order a CIDT because results are more quickly obtained than with traditional culture methods.

Second, changes in incidence can reflect year-to-year variation rather than sustained trends.

For more information, visit www.tetrapakusa.com

Page 4: Since 1876 W S l y CHEESE REPORTER 30, 2018.pdf · February of 2015, when Califor-nia Dairies, Inc., Land O’Lakes and Dairy Farmers of America requested that USDA hold a pub-

CHEESE REPORTERPage 4 March 30, 2018

from our archives

50 YEARS AGOMarch 29, 1968: Washing-ton—The USDA explained to dairy farmers this week that it wanted to keep the emergency price increase for bottled milk because without it “the adequacy of future milk supplies of milk for all markets would be jeopar-dized.” USDA wants to keep the 20-cent per hundredweight on Class I milk until April 1969.

Chicago—The American Dairy Association, in effect rejecting the idea of a nationwide compul-sory support plan for the promo-tion of milk and milk products, favored permissive legislation to allow such programs in federal order markets at its meeting here this week.

25 YEARS AGOApril 2, 1993: Washington—Food safety is the number one issue that will occupy federal policy makers over the next sev-eral years, predicted FDA com-missioner David Kessler here this week. The way we produce food, distribute and consume it has changed in some very fun-damental ways since the basic elements of today’s food safety system were put in place.

West Bend, WI—Level Valley Dairy Co. here recently received the Wisconsin State Fair Seal of Excellence Award for its Cream cheese, based on the annual Consumer Preference Survey at the Fair.

10 YEARS AGOMarch 28, 2008: Brussels, Bel-gium—Italy’s health minister today assured the EC that Ital-ian authorities are taking further measures to prevent entrance into the EU market of dairy products containing higher than permissible levels of dioxin. The assurances followed an inci-dent with dioxin-contaminated Mozzarella in Italy’s Campania region.

Freedom, WI—BelGioioso Cheese this week held grand open-ing ceremonies for industry digni-taries and guests in honor of the company’s newest cheese plant, located here. The 90,000 square-foot facility is the sixth cheese manufacturing and processing facility for BelGioioso, which has been making cheese in northeast Wisconsin since 1979. Construc-tion began in April 2007 and cheemaking started in December.

Nutricepts, Inc. T: 952-707-0207E: [email protected]

Nutricepts, Inc.

CrystalBanTM allows for a more precise management of moisture levels. This allows you to convert blocks into thinner cheese slices and longer shreds without fracturing the cheese.

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New FDA Strategy(Continued from p. 1)

vations occurring in this food cat-egory.”

FDA wants to maintain the basic nature and nutritional integrity while allowing industry flexibiltiy for innovation, Gottlieb noted. Protection against economic fraud “still is critical. But we also see a need for flexibility in standards that allow better public health out-comes by encouraging manufactur-ers to produce more healthful foods that are still affordable.”

FDA will be issuing a “Request for Information” to help guide the agency in developing an approach to modernizing standards.

There remains “no single more effective public health action related to nutrition than the reduc-tion of sodium in the diet,” accord-ing to Gottlieb. “I’m committed to advancing the short-term volun-tary sodium targets.”

FDA in June of 2016 had released draft guidance that pro-vided voluntary sodium reduction targets for a variety of cheese, but-ter and other food products. The short-term (two-year) and long-term (10-year) sodium reduction goals are voluntary.

The agency intends to align its approach with the Dietary Refer-

ence Intake study that’s currently being conducted by the National Academies, Gottlieb said. FDA plans to release updated short-term targets in 2019, as well as continu-ing the dialogue on longer-term reduction efforts.

Another prong of FDA’s Nutri-tion Innovation Strategy is to re-evaluate the ingredient infor-mation on food packages.

“Consumers want ‘clean labels’ that are readable and understand-able,” Gottlieb noted. “Manufac-turers are taking this consumer preference seriously, and FDA has a role here as well.”

In addition to readability, this includes considering whether sim-pler alternatives names for certain ingredients could be used so they are more understandable.

One such proposed change is in front of FDA right now, Gottlieb said. The agency has been peti-tioned to allow the use of alterna-tive names for potassium chloride, to “make it clear that this prod-uct is a salt,” and the agency is “actively considering” the request.

FDA is finishing its work on menu labeling. The agency recently issued draft guidance that provides flexibility on how the menu labeling requirements can be implemented, and FDA will “soon finalize that guidance,” Gottlieb

said. Beginning on May 7, 2018, consumers can walk into covered eating establishments “and know at a glance how many calories are in the foods they order.”

FDA is also taking final steps on the new Nutrition Facts label. The agency issued final regulations in May 2016 and has proposed extending the compliance date for larger companies to Jan. 1, 2020.

Earlier this year, FDA announced that it was launching a major edu-cational campaign for consumers regarding the new nutrition infor-mation that consumers will be see-ing. The campaign will focus on the areas where FDA recognizes that there are gaps in consumer understanding and use of nutrition information, Gottlieb said.

Finally, FDA is looking at mod-ernizing how it looks at claims, which are “quick signals on food packages for consumers about what benefits a food or beverage they choose might have,” Gottlieb said. Claims can also encourage the food industry to introduce new products or reformulate existing products to improve their healthy qualities.”

Food companies “are going to focus their innovation on attri-butes that they can advertise to consumers. If manufacturers can’t make claims around the healthful attributes of food, then we’ll see fewer products that have these benefits,” he said.

“Healthy” is one claim that FDA believes is “ripe for change.” Having a one-word claim such as “healthy” that’s based on current science would make it “even eas-ier” for consumers to make choices that can help build more healthful diets, Gottlieb noted.

“We’ve focused primarily on the nutrients contained in food in considering what is healthy. But people eat foods, not nutrients,” he continued. “This is why we’re asking the important question of whether a modernized definition of ‘healthy’ should go beyond nutri-ents to better reflect dietary pat-terns and food groups.”

FDA will also consider how to depict “healthy” on the package so that consumers can easily find it, Gottlieb said.

To address this, the agency has had discussions about whether there should be a standard icon or symbol for the word “healthy” that everyone could use on food packages. FDA will be soliciting stakeholder input on whether this would be useful.

FDA also plans to seek input on other possible changes to its nutrient content claims and other types of claims that could facilitate innovation to promote healthful eating patterns, Gottlieb said. The agency is also interested in explor-ing claims for products that offer food groups for which US diets typically fall short of recommenda-tions, such as for lowfat dairy.

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CHEESE REPORTERMarch 30, 2018 Page 5

Animal-Free(Continued from p. 1)

milk can be used to generate a composition that has a similar fla-vor, a similar appearance, a similar nutritional value, a similar aroma, and a similar mouthfeel of mam-mal-produced milk.

Provided in the patent are compositions including: about 0.3 grams per liter to about 1.1 grams per liter .kappa.-casein pro-tein; about 1.25 grams per liter to about 4.9 grams per liter .beta.-casein protein; a final total con-centration of one or more lipids of about 0 weight percentage to about 45 weight percentage; a final total concentration of one or more flavor compounds of about 0.01 weight percentage to about 6 weight percentage; a final total concentration of about 0.1 weight percentage to about 6 weight per-centage of one or more sweetening agents; and a final total concentra-tion of ash of about 0.15 weight percentage to about 1.5 weight percentage, where the composi-tion does not include an animal-derived component.

In some embodiments of any of the compositions described in the patent, the one or more lipids are selected from the group consisting of: sunflower oil, coconut oil, tri-butyrin, mono- and di-glycerides, free fatty acids, and phospholipids. In some embodiments of any of the compositions described in the pat-ent, the free fatty acids comprise at least one fatty acid selected from the group of: butyric acid, caproic acid, caprylic acid, and capric acid.

In some embodiments, the phospholipids are soy lecithin phospholipids, sunflower leci-thin phospholipids, cotton leci-thin phospholipids, or rapeseed lecithin phospholipids. In some embodiments, the monoglycerides and diglycerides are plant-derived monoglycerides and diglycerides, or are bacteria-derived monoglyc-erides and diglycerides.

Also provided in the patent are compositions including: a mamma-lian-produced milk or a processed mammal-produced milk; and one or both of a .kappa.-casein protein that is unglycosylated or has a non-mammalian glycosylation pattern, and a .beta.-casein protein that is unglycosylated or has a non-mam-malian glycosylation pattern.

Also provided are nucleic acids that include: a promoter; a sequence encoding a signal sequence; a sequence encoding a milk protein; and a yeast termination sequence, where the promoter is operably linked to the signal sequence, the signal sequence is operably linked to the sequence encoding the milk protein, and the terminal sequence is operably linked to the sequence encoding the milk protein. Also provided are host cells that include any of the nucleic acids described in the patent.

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Restaurant Performance Index Rose Slightly In February; Operators Still Generally PositiveWashington—The National Res-taurant Association’s Restaurant Performance Index (RPI) stood at 101.1 in February, up slightly from January, the association reported today.

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

The RPI consists of two compo-nents: the Current Situation Index and the Expectation Index. The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), stood at 100.4 in February, up 1 percent from Janu-ary.

February represented the second time in three months that the Cur-rent Situation Indeex stood above the 100 level.

Restaurant operators reported a net increase in same-store sales for the fourth consecutive month, with February’s results similar to the January performance. Some 48 percent of operators reported a same-store sales increase between February 2017 and February 2018, compared to 47 percent of opera-tors who reported higher sales in January. Some 34 percent of res-taurant operators reported a same-store sales decline in February, unchanged from January.

February represented the first time in nearly two years that oper-ators reported a net increase in sales in four consecutive months, the association pointed out.

In contrast to the sales results, restaurant operators reported a net decline in customer traffic in Feb-ruary.

Some 30 percent of operators reported an increase in customer traffic between February 2017 and February 2018, while 41 per-cent reported a traffic decline. In January, 26 percent of operators reported higher customer traffic and 52 percent reported a traffic decline.

Restaurant operators reported an uptick in capital spending activity in February. Some 57 per-cent of operators said they made a capital expenditure for equipment, expansion or remodeling during the last three months, up from 52 percent who had reported similarly in January.

The Expectations Index, which measures restaurant operators’ six-month outlook for four indus-try indicators (same-store sales, employees, capital expenditures and business conditions), stood

Restaurant operators are also somewhat less bullish about the economy. Some 31 percent of operators said they expect eco-nomic conditions will improve in six months, down from 42 percent in January. Ten percent of opera-tors think economic conditions will worsen in six months, while 59 percent expect conditions will remain about the same as they are now.

Looking ahead, a majority of restaurant operators are planning for capital expenditures in the coming months, the association said. Some 59 percent of operators plan to make a capital expendi-ture for equipment, expansion or remodeling in the next six months, down slightly from 61 percent in January.

The RPI is based on the responses to the National Res-taurant Association’s Restaurant Industry Tracking Survey, which is fielded monthly among more than 400 restaurant operators nation-wide on a variety of indicators including sales, traffic, labor and capital expenditures.

at 101.8 in February, down 0.6 percent from January and the sec-ond consecutive monthly decline. Although February’s reading was the lowest in five months, restau-rant operators remain generally optimistic about business condi-tions in the months ahead.

Restaurant operators remain generally positive about business conditions, though their optimism is somewhat dampened from recent months.

Some 35 percent of operators expect to have higher sales in six months (compared to the same period in the previous year), down from 57 percent two months ago — which represented the highest level in nearly three years.

Only 9 percent of restaurant operators expect their sales volume in six months to be lower than it was during the same period in the previous year, while 56 percent of operators think their sales will remain about the same.

For more information, visit www.multipond.com

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CHEESE REPORTERPage 6 March 30, 2018

Florida Decision(Continued from p. 1)

only extensive plant closures for extended periods of time, but also grocery store closures, which resulted in lost Class I sales in the retail sector and a trickle-down impact through the entire milk supply chain.

The record of the proceeding indicates that this extraordinary market situation left dairy farmers with limited – and in some cases no – market outlets in the market-ing area for several days, USDA continued. Proponents stressed that the storm disrupted dairy plant operations and retail market-ing, but producers could not stop their cows from producing milk.

This market reality, the pro-ponents emphasized, left pooling handlers with few options for mar-keting milk, and many incurred significant losses despite their best efforts to balance the milk supply of the entire marketing area.

The record shows that during that time period the cooperatives, in their capacity as the pooling handlers of their members’ milk, were forced to transport milk long distances to find alternative out-lets. As a last resort, witnesses said they were forced to dump milk, if no alternative outlet could be found. These losses were borne by the co-ops, and the record indi-cates they have no viable method for recouping those losses.

Record evidence provided shows total losses for the co-ops are esti-mated to exceed $700,000 for the four categories of reimbursement, excluding additional transporta-tion costs that at the time of the hearing had yet to be quantified by all witnesses.

The Agricultural Marketing Agreement Act of 1937 provides authority for payments to handlers for services of marketwide benefit. These payments are authorized to come from marketwide pool mon-ies before a producer blend price is computed.

The record of this proceed-ing contains substantial evidence that from Sept. 6 through 15, 2017, the Florida dairy market was completely disrupted due to Hur-ricane Irma and Florida handlers did their best to market and bal-ance the area’s milk supply. The record reveals that, in performing this marketwide service, handlers incurred marketing expenses and losses solely attributable to the market situation created by Hur-ricane Irma.

And the record demonstrates that handlers have no market pro-cess for recouping these marketing expenses and losses.

Accordingly, USDA’s decision finds a temporary assessment of nine cents per hundredweight on Class I milk is justified to provide reimbursement to handlers for demonstrated extraordinary costs incurred Sept. 6-15, 2017, that

fall into the four identified general categories.

The assessment will only be collected during the seven-month period starting in the initial month the assessment would become effective.

Assessment funds would be col-lected by the market administra-tor and distributed to qualifying handlers who incurred costs in the four identified categories, and who provide proof satisfactory to the market administrator that costs are eligible for reimbursement.

This decision finds it appropri-ate that handlers be required to submit all claim requests to the market administrator during the first month the assessment would become effective.

This would provide handlers adequate time to assemble and submit necessary records, and give the market administrator suffi-cient time to determine the total amount of eligible claims and adjust the assessment accordingly in the last month, ensuring that, as accurately as possible, only the necessary funds are collected.

This decision finds that handlers should be reimbursed for transpor-tation expenses in excess of costs associated with customary shipping routes for milk that would have been considered part of the regular producer milk supply of the order, but was delivered to plants outside of the marketing area from Sept. 6-15, 2017.

A reasonable reimbursement rate on eligible loads should be the lesser of actual demonstrated transportation expenses or $3.75 per loaded milk.

USDA’s decision also found that handlers should be reimbursed for lost location value on milk that would have normally been deliv-ered to fluid milk plants within the marketing area but was instead rerouted to plants outside of the marketing area because of Hurri-cane Irma.

The location value of milk is the Class I differential associated with plant of first receipt. The change in plant of first receipt reduced the location value of that milk by $2.00 per hundred.

The decision found that han-dlers should be reimbursed, at the lowest classified use value for Sep-tember 2017, for milk dumped on farms, milk dumped from tankers after being moved off farms, or skim milk dumped at plants due to Hurricane Irma.

And the decision found that handlers who sold milk at dis-tressed prices due to Hurricane Irma should be reimbursed for the difference between the end-use classified value and the price the handler actually received for the milk.

Finally, the decision found that emergy marketing conditions exist that warrant the omission of a rec-ommended decision.For more information, visit www.sulbana.com

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Nestle Canada Plans $51.5 Million Expansion Of Ice Cream PlantLondon, Ontario—Nestle Can-ada recently announced expan-sion plans for its $51.5 million investment to increase produc-tion capabilities at its London ice cream factory here.

The factory, which supplies all of Canada with brands such as Haagen-Dazs, Drumstick and Parlour, has seen increased growth within the category, which has resulted in greater production demands, the com-pany explained. This expansion investment will help the com-pany continue to innovate and bring new products to the mar-ket.

Nestle Canada received $390,000 in funding from the South Western Ontario Devel-opment Fund for an early phase of the investment, which enhanced the cleaning technol-ogy for each individual produc-tion line, a step that was essential to the expansion’s success.

In addition to creating an additional 12 jobs at the factory, 45 jobs will move from seasonal part-time employment to full-time positions. This expansion project and the resulting pro-duction will increase ingredient, packaging and raw material sup-plier purchases. Nestle Canada is one of the largest purchasers of Canadian dairy for its portfo-lio of products.

Expansion of the London facility began in early 2016 with reconfiguration and con-solidation of production lines to increase its capacity and flexibil-ity for Haagen-Dazs. The second phase saw the addition of a sec-ond Drumstick line to meet the ever-increasing demand for the popular frozen treat. The third phase helped to modernize the existing processes to allow for greater flexibility within the production lines.

The expansion includes an increase to the factory’s current footprint by 9,000 square feet to create capacity for future growth of Haagen-Dazs and other pop-ular products. Groundwork has already begun, with production planned early next year.

“We are really proud to be a part of the London community and excited to be making this significant investment,” said Jayne Payette, business execu-tive officer, ice cream at Nestle Canada. “Our employees work hard every day to bring these great Made in Canada brands to our consumers and this invest-ment allows us to bring even more exciting and innovative products to market.”

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CHEESE REPORTERMarch 30, 2018 Page 7

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For more information, visit www.weighpack.com

CA Final Decision(Continued from p. 1)

The record reveals that there is milk, both raw and packaged, being sold into and out of California over which the CSO has no regulatory jurisdiction. The revenues from those unregulated Class I sales are not shared with all the producers supplying the California market.

A federal order would ensure that those classified use values would be shared with all producers who supply the California market. The ability of a California FMMO to capture interstate sales, through either full or partial regulation, would protect the integrity of the entire regulatory framework. Fur-ther, out-of-state producers supply-ing that milk would be paid the order’s blend price, which is reflec-tive of the market’s total classified use value, USDA said.

The decision continues to find that the California quota program should remain entirely within the jurisdiction of CDFA, and that its proper recognition under the pro-posed California FMMO would be through an authorized deduction from payments due to producers.

USDA’s final decision contin-ues to find that a set of uniform provisions should continue to be maintained throughout the FMMO system to ensure consis-tency between the uses of terms. Therefore, the final decision finds that a California federal order should contain provisions consis-tent with those in the 10 current federal orders.

The final decision continues to find that the producer-handler definition, including additional language related to producer-han-dler qualification, as proposed in the recommended decision would be appropriate for a California FMMO. As well, the proposed California FMMO should contain the uniform FMMO producer-han-dler provision that limits monthly Class I route disposition to 3.0 mil-lion pounds.

Because this final decision does not propose adoption of inclusive pooling, dairy product manufactur-ers of all sizes are allowed to opt out of the marketwide pool, making it unnecessary to provide additional allowances for small producer han-dlers under the California FMMO.

Classification And PricingBecause California would be join-ing the federal order system, it should contain the uniform classi-fication provisions included in the 10 existing federal orders, USDA said. Adoption of standard FMMO product classification provisions in the proposed California FMMO is appropriate to maintain uniform pricing for similar products both within the California FMMO and throughout the FMMO system.

While the CSO has five classes of milk (1, 2, 3, 4a and 4b), the

record reflects that under the uni-form FMMO classification provi-sions, products currently classified by the CSO as Class 2 and 3 would be classified by the California FMMO as Class II; CSO Class 4b products would be classified as Cal-ifornia FMMO Class III; and CSO Class 4a products would be classi-fied as California FMMO Class IV.

USDA’s decision also finds that the California FMMO should adopt the same provisions as the existing FMMOs regarding the classification of milk transfers and diversions, plant shrinkage and overages, and allocation of handler receipts to handler utilization.

The evidentiary record of this proceeding supports and validates the same conclusion that prices used in a California FMMO should reflect the national marketplace for cheese, butter, nonfat dry milk and dry whey. The record reflects that commodity products produced in California compete in the same national market as products pro-duced throughout the US.

Uniform federal order price formulas ensure similarly situated handlers have equal minimum raw milk costs regardless of where the handler is regulated, and as Cali-fornia is seeking to join the federal order system, it is appropriate that the milk pooled on the Califor-nia federal order be priced under the same uniform price provisions found in all current FMMOs.

The record evidence supports the finding that by pricing Cali-fornia milk under these uniform pricing provisions, prices received by farmers whose milk is pooled on the California FMMO would be more reflective of the national market for commodity products for which their milk is utilized. There-fore, adopting a western adjusted price series, a 40-pound only Cheddar cheese price, and Cali-fornia-specific make allowances is not appropriate, USDA stated.

Class I milk pooled on the Cali-fornia FMMO is proposed to be paid on a skim and butterfat basis. This uniform treatment would avoid disorderly marketing with adjacent or other federal orders, as otherwise handlers could engage in inefficient milk movements solely for the purpose of seeking a Class I price advantage, USDA said.

Currently, six of the 10 FMMOs utilize multiple component pric-ing to determine the handler’s and producer’s value of milk. In those orders, producers are paid for the pounds of butterfat, pounds of pro-tein, pounds of other solids of milk pooled, and a per hundredweight price known as the producer price differential (PPD). The PPD reflects the producer’s pro rata share of the value of Class I, Class II, and Class IV use in the market relative to Class III use. The Class III butterfat, protein, and other sol-

ids prices are the same component prices charged to handlers based on the value of the use of milk in Class III. In four of these orders, there is an adjustment to the pro-ducer’s payment for the SCC.

USDA’s final decision contin-ues to recommend producer pay-ments on a multiple component basis. Producers would be paid for the butterfat, protein, and other solids components in their milk and for the hundredweight of milk pooled. Also, producers under the proposed California federal order continue to be paid a PPD calcu-lated in the same manner as in six current federal orders.

The final decision does not find justification for distributing the PPD through the component prices as offered in Proposal 1. Current federal order producers receive and understand that the PPD rep-resents the additional value from the higher classified markets that they are able to share because they participate in the FMMO. This includes months when the PPD is negative, USDA said.

This final decision does not rec-ommend a SCC adjuster for the California FMMO, as the record does not contain evidence to sup-port its inclusion, USDA said.

Pooling, Transportation CreditsUSDA’s final decision recom-mends pooling provisions for a California federal order conceptu-ally similar to those in the 10 cur-rent federal orders, but tailored for the California market.

The recommended pooling provisions are performance-based and are designed to identify those producers who consistently supply the Class I market and therefore should share in the revenues from the market. There would be no regulatory difference in producer payments for milk based on the

location of the dairy farm where it was produced.

USDA’s analysis of the record of this proceeding, including the comments on and exceptions to the recommended decision, finds that performance-based pooling standards remain the appropriate method for identifying the produc-ers and producer milk that serve the Class I market. Therefore, performance-based pooling provi-sions, tailored to the local market, are recommended for a California federal order.

To prevent uneconomic ship-ments of milk solely for the purpose of pool qualification, the decision continues to propose two addi-tional pooling provisions. First, a unit pooling provision is proposed that allows two or more plants located in the marketing area and operated by the same handler to qualify for pooling as one unit.

Second, a system pooling provi-sion is proposed to allow two or more supply plants, located in the marketing area and operated by one or more handlers, to qualify for pooling as a system by meeting the supply plant shipping requirements jointly as a single plant.

The final decision does not pro-pose separate pooling standards for plants receiving quota milk.

The proposed California FMMO includes repooling limits of 125 percent for the months of April through February, and 135 percent for the month of March, of the producer milk receipts pooled by the handler in the previous month.

This final decision continues to propose no transportation credit provisions for a California federal order. As in all FMMOs, producers are responsible for finding a market for their milk and bear the cost of transporting their milk to a plant, USDA explained.

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CHEESE REPORTERPage 8 March 30, 2018

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Speaker Lineup For IDDBA Expo Includes Michael J. Fox, Packers’ Aaron RodgersNew Orleans, LA—Actor Michael J. Fox, Green Bay Pack-ers quarterback Aaron Rodgers and Milk Bar CEO Christina Tosi are among the headline speak-ers at this year’s International Dairy-Deli-Bakery Association’s (IDDBA) trade show.

The three-day event will take place here June 10-12 at the New Orleans Ernest N. Morial Con-vention Center. It kicks off with general sessions led by Green Bay Packers quarterback Aaron Rodg-ers; Milk Bar’s founder and CEO Christina Tosi; IDDBA board chairman Erik Waterkotte; and Ginger Hardage, former senior vice president of culture and communi-cations for Southwest Airlines.

Monday’s lineup features IDDBA president and CEO Mike Eardley; Jennifer Fleiss, CEO and co-founder, Code Eight; Daymond John, CEO and founder, FUBU; and CEO Bill McDermott, SAP.

Actor Michael J. Fox will speak along with US Navy fighter pilot Carey Lohrenz and Eddie Yoon, founder, Eddie Would Grow.

The Expo’s Show & Sell Work-shop on Sunday, featuring indus-

try professionals who engage audiences in presentations and live demonstrations that promote learning, community, and net-working, will be led by Milk Bar’s Christina Tosi, along with Andy Ellwood, co-founder and presi-dent of Basket; Mark Dickinson of Emerge Strategic Solutions; and Jim Donald, president and COO, Albertsons Companies.

The New Product Showcase returns to IDDBA, which high-lights the newest products, pack-aging, and services in one place.

The show’s Expert Neighbor-hood features industry experts on disruption, leadership, marketing, and regulations to learn how to improve a business. Participants can talk about industry challenges, and business problems during these one-on-one appointments.

Experts include CEOs, entre-preneurs, specialists, authors, reg-ulatory and labeling consultant Michelle Wright; nutrition spe-cialist Melissa Grzybowski; and Peter Mayer’s Candace Graham and Maureen Bongiovanni.

For more information or to reg-ister online, visit www.iddba.org.

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Program On Creating A Food Safety Culture To Be Held May 22-25 In East Lansing, MIEast Lansing, MI—Creating a Food Safety Culture Executive Education will be offered here May 22-25 on the Michigan State Uni-versity (MSU) campus.

The program will be conducted at MSU’s James B. Henry Center for Executive Development. Eve-ning activities include a welcome reception on Tuesday; dinner and a tour of the Eli and Edythe Broad Art Museum on Wednesday; and dinner at the Huntington Club at Spartan Stadium on Thursday.

The program includes two days of sessions facilitated by Walmart’s Frank Yiannas, adjunct professor in the online Master of Science in Food Safety Program at MSU.

The program also includes guest lectures by William “Bill” Marler of Marler Clark LLP, and the Rob-ert Leader Endowed Lecture with guest lecturer Patricia Griffin, chief of the US Centers for Disease Con-trol and Prevention’s (CDC) epi-demiology branch. For information or to register online, visit www.online.foodsafety.msu.edu.

Food Microbiology Lab Training Course To Be April 30-May 3 In IdahoCaldwell, ID—A food microbiol-ogy laboratory training workshop will be held here April 30-May 3 at the University of Idaho Food Technology Center.

The course is designed to pro-vide training in sampling – both food and environmental – along with the microbiological testing of food and water. It will give stu-dents the tools they need to under-stand and implement procedures to detect microorganisms in food, water and the environment.

Speakers will cover lab safety measures, food and water sampling, sample preparation, detection procedures, microscopy, culture media preparation, and microbial swabbing, along with principles to detect, enumerate and identify bacteria count. Cost to attend is $895 per student.

To register online, visit www.ocrs.wsu.edu.

DEATHSJAMES TAYLOR, 76, of Wey-auwega, WI, died March 24. In 1966, Taylor entered the family cheese business – Taylor Cheese Corp. in Weyauwega – with his father, Abe, who owned and operated the enterprise. In 1974, Taylor Cheese became part of Churny Company, Inc., with Taylor at the helm of its Wisconsin Division. By 1980, Churny Co. became one of the largest producers and distribu-tors of specialty cheese in the US. Three years later, Taylor left Churny to revive Taylor Cheese in Weyauwega, where it still operates today. Among his many accomplishments, Taylor was a licensed Wisconsin State Cheese Grader, and had the first USDA-certified smoke house for cheese in the US.

ERIK WINER has been pro-moted to facility modernization consultant for ESE, Inc., respon-sible for performing site reviews and developing modernization plans for customers. Winer will also review current customer installations and help determine the future state of a facility.

The Safe Cheesemaking Hub, a project of the AMERICAN CHEESE SOCIETY (ACS), was honored with a 2018 PR News Nonprofit Award in the Web-site Category. Winners were judged on the impact of the campaigns they’ve led, and the positive influence they’ve had on society. The ACS Safe Cheese-making Hub features searchable resources, and tools to enhance food safety practices. The pub-lic site is mainly focused on the needs of small- to mid-sized US producers and the retailers who sell their products. This is the second PR News Nonprofit Award for ACS. Last year, it won the Marketing Category for its “Cheese Party” campaign to raise awareness of American arti-san cheese among consumers and industry members, while support-ing the work of the American Cheese Education Foundation.

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CHEESE REPORTERMarch 30, 2018 Page 9

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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.

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

WESTFALIA SEPARATORS: New arrivals! Model numbers 120, 130, 170 and 200. All water savers. Call GREAT LAKES SEPARATORS at (920) 863-3306 or e-mail [email protected].

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

2. Equipment Wanted

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

3. Products & Services

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]

7. Promotion & Placement

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

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].

14. WarehousingREFRIGERATION, 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].

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

Testing Analytical

Promote your microbiological, nutritional or food sample testing services here. Call 608-246-8430 for more information or email [email protected] to advertise here and at www.cheesere-porter.com

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

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

Email: [email protected]

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 CorporationCall NOW at 1-888-243-6622

Email: [email protected]

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.

Now hiringAssistant Cheese Maker – Jerome, IdahoWe are looking for someone to assist in the creation of new recipes as well as produce the tried and true, quality recipes. Under the direction of our Cheese Maker, you would help our cheese department achieve their goals. We make a variety of cheeses, such as; mozzarella, cheddar, gouda, muenster, monterey jack and provolone and run roughly a half million pounds per day at our Jerome, Idaho facility.

Are you interested? Apply online at www.agropurcheese.com or submit your resume to [email protected]

AA/EEO Minority/Female/Disability/Veteran/Sexual Orientation/Gender Identity

Agropur inc. is a wholly-owned subsidiary of Agropur Cooperative, which is a North American dairy industry leader founded in 1938. With sales of nearly $6.0 billion in 2016,

Agropur is a source of pride to its 3,345 members and 8,000 employees. Agropur processes more than 13 billion pounds of milk per year at its 39 plants across North America.

Food ScientistDairyfood USA, Inc., a SQF level 3 certified market leader in specialty cheese production for over 60 years, is currently seeking a Food Scientist to perform research and development activities to include innovation, brand maintenance, productivity and quality initiatives. Based in our production facility in the heart of America’s Dairyland, Blue Mounds, WI, this position reports to the Product Development Manager.

This position supports the formulation, development and evaluation of new products, and the continued advancement of current products, within the product development guidelines of SQF. This position will also support the organization’s quality assurance initiatives, ensuring that our industry leading quality standards are maintained and further developed. Ideal candidates will have a Bachelor’s degree in Dairy Science, Food Science, Microbiology or a related field and a minimum of 2 years of professional experience in an applied R&D environment in the food industry. Professional experience in an applied R&D environment in the processed cheese industry is preferred.

The position offers a competitive salary and a comprehensive benefits package. Interested applicants should email a cover letter, resume and salary requirements to:

[email protected] USA, Inc.2819 County Road F, Blue Mounds, WI 53517(Corner of 18/151 & County Rd F)608-437-5598www.dairyfoodusa.com

Equal Opportunity Employer

Dairyfood USA, Inc.Sales & Marketing ManagerDairyfood USA, Inc., a SQF certified market leader in specialty cheese produc-tion for over 60 years is seeking a Sales/Marketing Manager for its Western Region. The Western Region Sales Manager will develop strategy and organize and execute a dynamic marketing and sales program serving diversified markets such as Food Service, Private Label, Grocery, Snack Companies and Retail.

Develops and manages Broker network. Develops and executes general sales promotion and advertising strategy. Coordinates and directs meetings, confer-ences and convention programs to achieve maximum direct product exposure and promote sales. Represents Company at regional and national trade shows.

The ideal candidate will have sales and marketing experience in the Food Industry and live in the region.

Dairyfood USA, Inc. offers an excellent salary and comprehensive benefit pack-age.

For confidential consideration,please forward resume to:

Peggy WhiteHuman Resources ManagerDairyfood USA, [email protected]

Dairyfood USA, Inc.Sales & Marketing Manager

Dairyfood USA, Inc., a SQF certified market leader in specialty cheese produc-tion for over 60 years is seeking a Sales/Marketing Manager for its EasternRegion responsible to develop strategy and to organize and execute a dynamicmarketing and sales program serving diversified markets such as Food Service,Private Label, Grocery, Snack Companies and Retail.

Develops and manages Broker network. Develops and executes general salespromotion and advertising strategy. Coordinates and directs meetings, confer-ences and convention programs to achieve maximum direct product exposureand promote sales. Represents Company at regional and national trade shows.

The ideal candidate will have sales and marketing experience in the FoodIndustry and live in the region.

Dairyfood USA, Inc. offers an excellent salary and comprehensive benefit pack-age.

For confidential consideration,please forward resume to:

Peggy WhiteHuman Resources ManagerDairyfood USA, [email protected]

ory to:

Page 10: Since 1876 W S l y CHEESE REPORTER 30, 2018.pdf · February of 2015, when Califor-nia Dairies, Inc., Land O’Lakes and Dairy Farmers of America requested that USDA hold a pub-

CHEESE REPORTERPage 10 March 30, 2018

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

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

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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: 3/30/18

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

___Material to advertise in Cheese Reporter___Other____________________________

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

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

40-Pound Block Cheddar Cheese Prices and Sales Weighted Price Dollars/PoundUS 1.5876 1.5690• 1.5565• 1.5513 Sales Volume PoundsUS 11,462,333 12,233,475• 11,733,881 11,975,517•

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

Weighted Price Dollars/Pound US 1.6125 1.5945• 1.5668• 1.5329• Adjusted to 38% Moisture US 1.5348 1.5151• 1.4913• 1.4570• Sales Volume PoundsUS 11,873,430 12,325,764• 14,585,974• 12,713,015•Weighted Moisture Content PercentUS 34.86 34.75• 34.86 34.77

Butter

Weighted Price Dollars/PoundUS 2.2042 2.1699• 2.1791 2.1368Sales Volume PoundsUS 5,724,600 5,913,414• 5,846,599• 7,195,680.2613•

Dry Whey Prices

Weighted Price Dollars/PoundsUS 0.2614 0.2399• 0.2542 0.2594•Sales Volume US 5,789,128 9,616,604• 7,861,924• 5,992,335•

Nonfat Dry Milk

Average Price Dollars/PoundUS 0.6943 0.6891• 0.7069• 0.7017•Sales Volume PoundsUS 20,554,459 19,628,336• 15,131,447• 17,005,916•

DAIRY PRODUCT SALES

$1.00

$1.25

$1.50

$1.75

$2.00

$2.25

$2.50

2008 2010 2012 2014 2016 2018

CME Block & Barrel Prices: March 2008 -2018

$1.00

$1.25

$1.50

$1.75

$2.00

$2.25

2008 2010 2012 2014 2016 2018

CME Butter Prices: March 2008 -2018

Casein Prices – Since 2013 Rennet

$1.75

$2.25

$2.75

$3.25

$3.75

$4.25

$4.75

$5.25

DAIRY FUTURES PRICESSETTLING PRICE *Cash SettledDate Month Class III* Class IV* Dry Whey* NDM* Butter* Cheese*3-23 March 18 14.21 13.09 25.250 70.150 217.000 1.55303-26 March 18 14.22 13.09 25.250 70.150 216.800 1.55403-27 March 18 14.22 13.09 25.250 70.150 216.800 1.55403-28 March 18 14.23 13.08 25.250 69.800 217.000 1.55403-29 March 18 14.23 13.08 25.250 69.800 217.050 1.55403-23 April 18 14.23 13.30 25.825 70.750 221.250 1.54703-26 April 18 14.38 13.30 25.825 70.875 220.750 1.56703-27 April 18 14.36 13.30 25.825 71.000 221.000 1.56403-28 April 18 14.34 13.32 26.250 71.150 222.250 1.55703-29 April 18 14.27 13.37 26.400 71.125 223.500 1.55303-23 May 18 14.19 13.53 26.850 71.475 223.000 1.54103-26 May 18 14.34 13.53 26.850 72.500 223.125 1.55603-27 May 18 14.39 13.53 27.275 72.975 223.125 1.55603-28 May 18 14.33 13.58 27.600 73.000 224.750 1.54603-29 May 18 14.27 13.67 27.500 73.275 226.000 1.54103-23 June 18 14.62 13.79 27.425 73.400 226.000 1.57203-26 June 18 14.73 13.79 27.425 74.525 224.275 1.59003-27 June 18 14.78 13.81 27.425 75.250 225.250 1.59503-28 June 18 14.73 13.82 28.050 75.250 227.000 1.58503-29 June 18 14.66 13.91 28.250 75.000 227.850 1.5800

3-23 July 18 15.25 14.04 28.500 75.350 228.500 1.63903-26 July 18 15.29 14.15 28.500 76.025 228.000 1.64203-27 July 18 15.32 14.15 28.500 76.525 228.150 1.64403-28 July 18 15.27 14.15 28.525 76.700 231.000 1.63403-29 July 18 15.23 14.23 28.525 76.800 231.750 1.6370

3-23 August 18 15.60 14.21 28.575 77.000 230.775 1.67103-26 August 18 15.66 14.43 28.575 78.000 230.000 1.67603-27 August 18 15.66 14.40 28.600 78.500 230.975 1.67403-28 August 18 15.66 14.40 28.750 78.250 232.125 1.67303-29 August 18 15.61 14.48 28.750 78.825 233.250 1.6690

3-23 September 18 15.89 14.55 29.500 79.400 233.750 1.69403-26 September 18 15.93 14.72 29.500 80.000 231.775 1.69803-27 September 18 15.93 14.66 29.500 80.000 233.350 1.69703-28 September 18 15.93 14.66 29.525 79.750 235.500 1.69503-29 September 18 15.90 14.66 29.525 79.750 235.000 1.69303-23 October 18 15.91 14.74 30.000 81.275 235.500 1.69503-26 October 18 15.95 14.74 30.000 82.750 235.500 1.70303-27 October 18 15.95 14.74 30.000 81.825 235.500 1.70003-28 October 18 15.95 14.77 30.000 81.400 236.650 1.69803-29 October 18 15.90 14.77 30.000 81.025 237.000 1.6980

3-23 November 18 15.81 14.90 30.250 82.725 236.075 1.68703-26 November 18 15.86 14.90 30.250 84.150 236.075 1.69203-27 November 18 15.88 14.90 30.250 83.250 236.075 1.69003-28 November 18 15.86 14.91 30.250 82.750 237.000 1.68703-29 November 18 15.83 14.91 30.250 82.025 237.575 1.68703-23 December 18 15.81 14.93 30.750 83.850 235.000 1.68003-26 December 18 15.84 14.93 30.750 85.300 235.000 1.68303-27 December 18 15.84 14.93 30.750 85.075 235.000 1.68303-28 December 18 15.83 14.95 30.750 84.250 235.700 1.68103-29 December 18 15.78 14.95 30.750 83.850 236.000 1.68003-23 January 19 15.57 15.25 31.500 84.900 228.250 1.67003-26 January 19 15.61 15.25 31.500 86.250 228.250 1.66803-27 January 19 15.62 15.25 31.500 86.250 228.250 1.66803-28 January 19 15.62 15.25 31.600 85.625 228.250 1.66803-29 January 19 15.64 15.25 31.600 85.325 228.2 1.6680

Interest - March 29 24,060 1,692 3,665 8,517 7,716 27,227

$1.35

$1.45

$1.55

$1.65

$1.75

$1.85

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

40-Pound Block Avg

CME vs AMS

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CHEESE REPORTERMarch 30, 2018 Page 11

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

03/26/18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,345 86,66503/01/18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,983 87,419Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,362 -754

NATIONAL - MARCH 23: The cheese market tone is steady to weakening, with both block and barrel prices decreasing from the start of the week, but stabilizing later on . North-eastern weather conditions continue to affect the dairy industry throughout the region and into the Midwest . Discounted spot milk prices range from $3 to $4 under Class . Cheese production varies regionally, with contacts in the East reporting plenty of milk loads for active cheese pro-duction despite weather conditions . In the West, cheese processors are waiting for the spring flush to near before increasing production, in an effort to control copious inventories . Generally, cheese stocks are long nationwide . Cheese demand is steady to increasing, with midwestern contacts reporting an uptick of cheese orders ahead of the spring holidays . However, weather conditions in the Northeast continue to hinder cheese sales in the Midwest .

NORTHEAST- MARCH 28: Northeast milk production is increasing, mainly allowing more available milk for manufacturing needs . Class I orders are lower in the East, thus milk is clearing heavily into Class III intakes . Cheese production is strong and manufacturers report orders are fairly good . Spot sales for cheese block and barrel are mixed, as some cheese markets report slow trades .

Wholesale prices, delivered, dollars per/lb:Cheddar 40-lb blocks: $2.0150 - $2.3000 Muenster: $2.0000 - $2.3500Process American 5#: $1.6600 - $2.1400 Swiss Cuts 10-14 lbs: $3.1625 - $3.4850

MIDWEST AREA - MARCH 28: Midwestern cheese makers suggest demand is moving ahead at steady to increasing levels . Mozzarella and Provolone makers say sales are meeting expectations, while some traditional/Cheddar style producers are pointing to increases in orders . Reported cheese production schedules vary, as some plants are clos-ing an extra day for the holiday weekend, while others continue at full capacity . Milk intakes continue to be heavily discounted: $2 to $5 under Class III . Cheese inventories vary quite a bit per producer, however there is some anxiety regarding the NASS Cold Storage num-bers moving mostly in the northerly direction . As demand has been decent, milk intakes are only increasing, and are unlikely to slow until the summer . That said, some see the cheese markets in a fairly comfortable place, at least temporarily . The price gap at the CME Group is remaining in a fairly tight range, holding at or around $ .05 for a majority of the month of March .

Wholesale prices delivered, dollars per/lb: Blue 5# Loaf: $2.1900 - $3.1775Cheddar 40# Block: $1.6500 - $2.0450 Monterey Jack 10#: $1.8975 - $2.1025Mozzarella 5-6# (LMPS): $1.7225 - $2.6625 Muenster 5# Loaf: $1.9225 - $2.3475Process American 5#: $1.6150 - $1.9750 Grade A Swiss 6-9#: $2.6800 - $2.7975

WEST - MARCH 28: Western cheese makers report demand has been solid . The rela-tively strong orders and ample milk supplies have pressed manufacturers to keep up . Indus-try contacts are pleased cheese is moving well and prices have been fairly stable . However, some suggest that cheese demand due to spring holiday orders has eased . The changing seasons leave processors with the knowledge they will soon face the vanward waves of spring flush . Manufacturers expect heavier milk supplies, increased cheese production and higher stocks may limit the upside potential of cheese markets in the near term . Contacts hope the grilling season will start early and Americans’ desire for cheeseburgers will add a little bullish bravado to an otherwise bearish dairy market .

Wholesale prices delivered, dollars per/lb: Cheddar 10# Cuts: $1.8625 - $2.0825Cheddar 40# Block: $1.6825 - $2.1275 Monterey Jack 10#: $1.8725 - $2.0325Process American 5#: $1.6025 - $1.8600 Grade A Swiss 6-9#: $2.7400 - $3.1700

FOREIGN -TYPE CHEESE - MARCH 28: In Germany, retailers and large consum-ers’ cheese demand for the spring holiday continues to upsurge . Sales of Mozzarella cheese are particularly rising . Overall, cheese inventories remain insufficient to meet all needs . The current stocks of cheese have a younger age structure and are at persistently low levels . Holiday orders were planned ahead of time . Nonetheless, it is still a challenge to fulfill all the delivery requests . Sliced cheese prices have a higher tendency, lining up with recent contract negotiation values . In the European Union, milk production is higher, resulting in active cheese yield . Cheese prices remain mixed within the EU . Selling prices, delivered, dollars per/lb: Imported Domestic

Blue: $2.6400 - 5.2300 $2.0675 - 3.5550Gorgonzola: $3.6900 - 5.7400 $2.5750 - 3.2925Parmesan (Italy): 0 $3.4575 - 5.5475Romano (Cows Milk): 0 $3.2575 - 5.4075Sardo Romano (Argentine): $2.8500 - 4.7800 0Reggianito (Argentine): $3.2900 - 4.7800 0Jarlsberg (Brand): $2.9500 - 6.4500 0Swiss Cuts Switzerland: 0 $3.2000- 3.5225Swiss Cuts Finnish: $2.6700- 2.9300 0

NATIONAL - MARCH 23: With the spring holiday demand window starting to close, butter production varies per region . The majority of print butter orders needed for the holidays have been fulfilled . Butter demand is relatively steady . Inventories are mixed . Some contacts suggest that inven-tories are low to in balance, while others suggest that inventories are growing . While cream for Class IV remains available, large amounts of cream are clearing into Class II .The market tone is steady with bullish behavior as buyers and sellers enter a post-holiday mode .

NORTHEAST - MARCH 28: With few holiday orders left to fill, some manufactur-ers have halted butter production . However, others have shifted their production focus into rebuilding inventories . With spring break still in effect, foodservice interest is sparse to moderate . Overall, stocks are sufficient to meet current needs . While cream for but-ter manufacturing remains steady, large amounts of available cream are clearing into Class II . The market tone is fairly steady, but is showing some signs of instability as spot market prices are fluctuating . The Northeast weighted average retail price for 1-pound butter was $2 .95, 5 cents higher than the national price, but down 48 cents from last week’s regional price . Retail butter markets reported prices ranging $1 .99-$4 .99 in the Northeast .

CENTRAL - MARCH 28: For Cen-tral region butter makers looking to the spot market, cream is widely available . Class IV cream multiples ranged from 1 .12 to 1 .18 . Cream availability is uncertain moving ahead into next week and beyond . Some are expecting, as ice cream makers begin to compete more heavily, that prices will level off and resurge to where they have been in recent weeks . Butter production is shift-ing to near term needs . Butter demand con-tinues to meet expectations, although food service orders have slowed due to holiday and spring breaks at the school level . Butter stocks vary, but some suppliers report their stores are generally balanced . NASS Cold Storage upticks have some in the industry concerned, but others suggest they have been disabused of the notion that butter is easily provoked by otherwise bearish news . As the public view on butter has changed, they feel the butter markets are less fran-gible than other commodities .

WEST - MARCH 28: Butter churning is ongoing in the West given that higher milk loads are available and has to be cleared . Contacts report that they are making less bulk butter and focusing more on print butter production . Except for a few late requests, sellers have fulfilled most of the spring holi-day orders . Exports sales are unchanged from last week, and market players do not expect any big change in the near future .

ORGANIC DAIRY - RETAIL OVERVIEW

The total number of both conventional and organic advertisements increased this week, up 12 percent for conventional ads and up 9 percent for organic ads . Ice cream and sour cream ads notched among the larger percentage increases . Conventional ice cream is up 25 percent for 48- to 64-ounce containers, averaging $2 .96 . Conventional sour cream in 16-ounce containers is up 27 percent, averaging $1 .59 . Organic sour cream averaged $2 .50, a $ .91 organic price premium . Total conventional cheese advertisements increased 10 percent . The average price of conventional 8-ounce block cheese is $2 .02, down 15 cents from last week . The average price of conventional 8-ounce shred cheese is $2 .06, up 3 cents compared to last week . The US average conventional one-pound butter price is $2 .74 this period, down 16 cents from a week ago . The one-pound organic butter price is $4 .77, an organic price premium of $2 .03 . Total organic milk ads decreased 47 percent . The national average advertised conventional milk price for half-gallons, $2 .52, increased 24 cents from a week ago . Organic half-gallon prices averaged $4 .14, down 57 cents from one week ago . The premium for organic over conventional half-gallons is $1 .62 this week .

National Weighted Retail Avg Price: Butter 1 lb: $4.77Cheese 8 oz shred: $3.00Cream Cheese 8 oz: $2.99Yogurt 4-6 oz: NAYogurt 32 oz: $3.29

Greek Yogurt 4-6 oz: NAGreek Yogurt 32 oz: NAMilk UHT 8 oz: $1.00Milk ½ gallon: $4.14Milk gallon: $6.18Sour Cream 16 oz: $2.50

RETAIL PRICES - CONVENTIONAL DAIRY - MARCH 30Commodity

Butter 1#

Cheese 8 oz block

Cheese 1# block

Cheese 2# block

Cheese 8 oz shred

Cheese 1# shred

Cottage Cheese

Cream Cheese

Ice Cream 48-64 oz

Flavored Milk ½ gallon

Flavored Milk gallon

Milk ½ gallon

Milk gallon

Sour Cream 16 oz

Yogurt (Greek) 4-6 oz

Yogurt (Greek) 32 oz

Yogurt 4-6 oz

Yogurt 32 oz

US NE SE MID SC SW NW

2 .74 2 .92 2 .88 2 .37 2 .68 3 .01 2 .25

2 .02 1 .91 1 .95 1.94 2.22 2 .28 1 .99

3 .41 NA 3 .48 NA 3 .83 3 .65 3 .49

5 .72 NA NA 5 .64 5 .76 NA 5 .99

2 .06 2 .03 1 .96 2 .02 2 .02 2 .29 1 .99

3.62 3 .68 3 .48 NA 3 .99 NA 3 .49

1 .68 1 .99 1 .49 1 .26 1 .71 1 .61 1 .99

1 .72 1 .86 1 .69 1 .56 1 .74 1 .75 1 .83

2.96 2 .48 3 .07 3 .08 3 .31 2 .77 2 .81

2 .40 NA NA 2 .33 NA 2 .50 NA

1 .99 NA NA 1 .99 NA NA 1 .99

2 .52 2 .59 2 .50 NA 3 .31 2 .50 NA

3 .49 3 .61 3 .99 3 .59 NA 3 .29 3 .75

1 .59 1.75 1 .44 1.44 3 .12 1 .70 1 .90

.98 .98 1 .00 .96 1 .38 1 .00 .95

4.61 3 .99 4 .57 3 .99 5 .21 4 .56 NA

.57 .57 .60 .58 .58 .55 .50

2 .45 2 .01 2 .87 2 .35 2 .35 2 .83 NA

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

NATIONAL - CONENTIONAL DAIRY PRODUCTS

NONFAT DRY MILK - MARCH 29NDM - CENTRAL: Prices of low/medium heat NDM held steady . NDM spot market activity was fairly quiet ahead of the holiday weekend and during spring break . The $ .70 area continues to be the comfort zone for many trades in the Cen-tral region . Some contacts have relayed this is currently an optimal market for Cen-tral region buyers, as long inventories and fairly high production are expected for the long term . High heat NDM inventories are mixed . High heat prices slipped on the bot-tom of the range, but overall trading was light . The NDM market tone is unchanged, but undoubtedly there is industry concern regarding flush season inventory levels .

NDM - EAST: Market conditions are steady as many suppliers are mainly ade-quate with supplies, but interest is some-what sluggish . Some buyers are willing to see where NDM prices go . Production is generally strong as more available milk loads are accessible around the region .

High heat NDM prices are a tad lower on the bottom of the range . The spot demand is generally steady with available supplies . Spot sale offers are scarce in the East as a few manufactures are taking the time to dry for contracted needs .

NDM - WEST: The market undertone is steady . A number of manufacturers report making to-order, brand-specific low/medium heat NDM due to fear of having too much inventories and also because of the expectation that prices might go down . Overall, low/medium heat NDM production is active for the reason that abundant milk supplie are present in the western region . Some buyers are postponing their pur-chases as they have enough inventories on hand . Therefore, spot trading activities are light to moderate with most sales tak-ing place within contractual agreements . Sales activities are moderate in the spot market, whereas contractual loads are moving steadily .

WHOLESALE BUTTER MARKETS

Page 12: Since 1876 W S l y CHEESE REPORTER 30, 2018.pdf · February of 2015, when Califor-nia Dairies, Inc., Land O’Lakes and Dairy Farmers of America requested that USDA hold a pub-

CHEESE REPORTERPage 12 March 30, 2018

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec‘10 1.4536 1.4526 1.2976 1.4182 1.4420 1.3961 1.5549 1.6367 1.7374 1.7246 1.4619 1.3807‘11 1.5140 1.9064 1.8125 1.6036 1.6858 2.0995 2.1150 1.9725 1.7561 1.7231 1.8716 1.6170‘12 1.5546 1.4793 1.5193 1.5039 1.5234 1.6313 1.6855 1.8262 1.9245 2.0757 1.9073 1.6619‘13 1.6965 1.6420 1.6240 1.8225 1.8052 1.7140 1.7074 1.7492 1.7956 1.8236 1.8478 1.9431‘14 2.2227 2.1945 2.3554 2.2439 2.0155 2.0237 1.9870 2.1820 2.3499 2.1932 1.9513 1.5938‘15 1.5218 1.5382 1.5549 1.5890 1.6308 1.7052 1.6659 1.7111 1.6605 1.6674 1.6175 1.4616‘16 1.4757 1.4744 1.4877 1.4194 1.3174 1.5005 1.6613 1.7826 1.6224 1.6305 1.8775 1.7335‘17 1.6866 1.6199 1.4342 1.4976 1.6264 1.6022 1.6586 1.6852 1.6370 1.7305 1.6590 1.4900‘18 1.4938 1.5157 1.5614

HISTORICAL MONTHLY AVERAGE BLOCK PRICES

CME CASH PRICES - MARCH 26 - 30, 2018Visit www.cheesereporter.com for daily prices

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

MONDAY $1.5000 $1.5450 $2.1800 $0.6925 $0.2875 March 26 (-1) (NC) (-1) (NC) (NC)

TUESDAY $1.5000 $1.5450 $2.1800 $0.6975 $0.2900March 27 (NC) (NC) (NC) (+½) (+¼)

WEDNESDAY $1.4750 $1.5300 $2.1850 $0.6975 $0.2900March 28 (-2½) (-1½) (+½) (NC) (NC)

THURSDAY $1.4400 $1.5300 $2.2150 $0.6900 $0.2850March 29 (-3½) (NC) (+3) (-¾) (-½)

FRIDAY No No No No NoMarch 30 Trading Trading Trading Trading Trading

Week’s AVG $1.47875 $1.53750 $2.1900 $0.69438 $0.28813 Change (-0.0437) (-0.0225) (+0.0040) (+0.0039) (-0.0024)

Last Week’s $1.5225 $1.5600 $2.1860 $0.6905 $0.2905AVG

2017 AVG $1.4060 $1.4730 $2.1015 $0.8100 NASame Week

MARKET OPINION - CHEESE REPORTERCheese Comment: One car of blocks was sold Monday on an offer at $1.5400; an unfilled bid for 1 car at $1.5450 then left the price unchanged. Tuesday’s block mar-ket activity was limited to an uncovered offer of 1 car at $1.5800, which left the price unchanged. On Wednesday, 1 car of blocks was sold on an offer at $1.5300, which lowered the price. No blocks were sold Thursday; activity was limited to an unfilled bid for 1 car at $1.5300 and uncovered offers of 3 cars at higher prices, which left the price unchanged. The barrel price declined Monday on offer-based sales of 3 cars at $1.5000, fell Wednesday on an uncovered offer of 1 car at $1.4750, and dropped Thursday on a bid-based sale of 1 car at $1.4400.

Butter Comment: The butter price fell Monday on an offer-based sale of 1 car at $2.1800, increased Wednesday on a bid-based sale of 1 car at $2.1850 (that was the last of 40 cars sold Wednesday), and rose Thursday on offer-based sales of 4 cars at $2.2150 (those were the last of 20 cars sold Thursday).

NDM Comment: The NDM price increased Tuesday on bid-based sales of 2 cars at 69.75 cents, then declined Thursday on bid-based sales of 3 cars at 69.0 cents.

Dry Whey Comment: The dry whey price increased Tuesday on a bid-based sale of 1 car at 29.0 cents, then fell Thursday on a bid-based sale of 1 car at 28.50 cents.

WHEY MARKETS - MARCH 26 - 30, 2018RELEASE DATE - MARCH 29, 2018

Animal Feed Whey—Central: Milk Replacer: .1500 (NC) – .2200 (NC)

Buttermilk Powder: Central & East: .6700 (+7) – .7800 (-1) West: .6600 (-2) – .7800 (NC) Mostly: .6800 (NC) – .7200 (NC)

Casein: Rennet: 2.2200 (-1¼) – 2.3100 (-1¼) Acid: $3.0000 (-1) - $3.2900 (-2)

Dry Whey—Central (Edible): Nonhygroscopic: .2000 (-1) – .3100 (NC) Mostly: .2150 (NC) – .2650 (NC) Dry Whey–West (Edible): Nonhygroscopic: .2200 (+1) – .3200 (-1) Mostly: .2350 (+1½) – .2875 (NC)

Dry Whey—NE: .2500 (NC) – .2900 (NC)

Lactose—Central and West: Edible: .1650 (-½) – .3900 (NC) Mostly: .2000 (NC) –.2600 (+1)

Nonfat Dry Milk —Central & East: Low/Medium Heat: .6800 (NC) – .7550 (NC) Mostly: .6900 (NC) –.7400 (NC) High Heat: .8150 (-½) – .9800 (NC)

Nonfat Dry Milk —Western: Low/Medium Heat: .6425 (+¾) – .7550 (NC) Mostly: .6700 (NC) –.7300 (NC) High Heat: .8500 (NC) – .9300 (NC)

California Weighted Average NFDM: Price Total Sales March 23 $0.7004 17,034,267 March 16 $0.7105 16,640,821 Whey Protein Concentrate—Central and West: Edible 34% Protein: .5900 (-4) – .9400 (NC) Mostly: .6250 (-1½) – .7500 (NC)

Whole Milk—National: 1.4400 (NC) – 1.5100 (NC) Visit www.cheesereporter.com for dairy and historical cheese,

butter, and whey prices

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Wisconsin Governor Signs Bill Changing Ag Security Program; Deferred Milk Payment Contracts Now AllowedMadison—Wisconsin Gov. Scott Walker on Wednesday signed into law a bill that makes several changes to the state’s Agricultural Producer Security Program, which is administered by the Wiscon-sin Department of Agriculture, Trade and Consumer Protection (WDATCP).

The new law allows a person who buys milk from a dairy pro-ducer to enter into a contract to pay the producer for that milk up to approximately five months after the person receives the milk.

Under the new law, a deferred payment contract for milk must be in writing, contain certain notices, and meet certain other require-ments.

Current law requires that a per-son who buys milk from a dairy producer make certain portions of the payment for that milk by the 4th and the 19th days of the next month.

The new law also requires the Wisconsin Department of Agriculture, Trade and Con-sumer Protection to promulgate rules that establish an additional license assessment that a milk pro-ducer must pay for entering into a deferred payment contract, and requires a person who buys milk

under a deferred payment con-tract to file and maintain security with the WDATCP, in certain situations, until it is eligible to be released.

The new law also modifies the amount of security that a milk contractor is required to main-tain in certain situations besides when purchases are made under a deferred payment contract.

The legislation was supported by, among others, the Wiscon-sin Cheese Makers Association (WCMA), Dairy Business Asso-ciation, and Cooperative Net-work.

“The success of Wisconsin’s $46 billion dairy industry is depen-dent not only on farms producing high-quality milk and processors making some of the world’s best cheese, but also on legislators who understand business owners’ needs to respond to fluctuating market prices,” said John Umhoefer, the WCMA’s executive director.

“Deferred milk payments can help dairy farms manage income and profitability, which boosts the overall fiscal health of our indus-try,” Umhoefer added.

The Wisconsin Cheese Mak-ers Association ’s policy commit-tee visited the State Capitol last month to encourage lawmakers to act on the legislation, which was authored by State Sen. Howard Marklein and then-Rep. Keith Ripp, who left the state Assembly late last year and is now assistant deputy secretary at the WDATCP.