t h w s l y cheese reporter 26, 2018.pdfincrease milk prices for the period apr. 1, 2018, through...

Dairy’s Three Top Opportunities: Consumer Perceptions, Innovation, Changing Markets

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CHEESE REPORTER Vol. 142, No. 32 • Friday, January 26, 2018 • Madison, Wisconsin

TPP Deal Reached Without US; Another NAFTA Round Underway

ing to upgrade their existing FTA.Both countries are key markets

for New Zealand dairy exports, DCANZ pointed out, with the Japanese market worth more than $795 million for New Zea-land dairy exporters in the year to November 2017.

“Given these developments, the timely implementation of CPTPP is critical. It is great to see indica-tions that the agreement will be signed very soon,” Bailey said.

For the longer term, it is impor-tant for CPTPP to be a launchpad for the elimination of all remain-ing barriers to regional dairy trade, Bailey added.

Significant wins for Austra-lian exporters under the CPTPP, according to the Australian gov-ernment, include elimination of a range of cheese tariffs into Japan covering more than $100 million of trade that was not covered by the Japan-Australia Economic Partnership Agreement.

“Reaching this milestone on the CPTPP is great news for Cana-dian farmers and food processors as it will help grow the Canadian

• See More NAFTA Talks, p. 9

Milk Production Rose 1.2% In December; 2017 Output Was Record 215.4 Billion Pounds, Up 1.4% From 2016Washington—US milk produc-tion in the 23 reporting states during December totaled 16.974 billion pounds, up 1.2 percent from December 2016, USDA’s National Agricultural Statistics Service (NASS) reported Wednesday.

November’s milk production estimate was revised down by 24 million pounds, so output was up 1.0 percent from November 2016, rather than up 1.1 percent as ini-tially estimated.

Production per cow in the 23 reporting states averaged 1,943 pounds for December, 11 pounds above December 2016.

The number of milk cows on farms in the 23 reporting states in December was 8.737 million head, 54,000 head more than December 2016 and 3,000 head more than November 2017.

Milk production for the entire US during the fourth quarter of 2017 totaled 53.071 billion pounds, up 1.1 percent from the fourth quarter of 2016.

For all of 2017, US milk produc-tion totaled a record 215.541 bil-lion pounds, up 1.4 percent, or 3.0 billion pounds, from 2016’s record output.

California’s December milk production totaled 3.371 billioin pounds, down 0.3 percent from December 2016, due to 14,000 fewer milk cows but 10 more pounds of milk per cow. Califor-nia’s fourth-quarter milk produc-

• See More Milk In Dec., p. 6

1625

1725

1825

1925

Milk Per CowDecember. 2005 - 2017 (in pounds)

Palm Desert, CA—The top three opportunities for dairy in the years ahead include con-sumer perceptions, innovation and changing markets, according to Michael Dykes, president and CEO of the International Dairy Foods Association (IDFA).

Consumers and their per-ception of dairy top the list of opportunities as well as chal-lenges, Dykes said in a Monday presentation at this week’s Dairy Forum.

Since the 1970s, growing con-sumer sophistication has spawned increasingly complex motivations for consuming beverages, Dykes pointed out. And these expand-ing motivations have prompted companies to offer a steadily expanding assortment of bever-ages and beverage categories.

Where there were three basic

beverage categories in the 1970s — milk and juice, soft drinks, and coffee and alcohol — today there are 15 separate categories of bev-erages, Dykes noted.

More choice seems to be a clear demand, and the diverse dairy industry is well positioned to meet it, he continued. The dairy industry needs to do more listening, responding educating, engaging, satisfying, understand-ing, persuading and servicing consumers, because everything hinges on their perception and purchases.

Serving consumers, Dykes said, means not only listening to their requests but understanding their behavior, buying patterns, con-versation on social media and other venues to truly learn what they want.

• See Dairy Opportunities, p. 10

NZ Dairy Group Sees Gains In Mexico, Japan; Canadian Group Says No More NAFTA ConcessionsTokyo, Japan—Eleven coun-tries this week concluded nego-tiations for the successor to the Trans-Pacific Partnership (TPP) agreement, known as the Com-prehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP).

The agreement was reached exactly one year after President Trump formally withdrew the US from the TPP.

The deal was reached this week by the other TPP participants, including Australia, New Zealand, Japan, Canada, Mexico, Chile, Malaysia, Peru, Singapore, Viet-nam, and Brunei Darussalam. The agreement is expected to be signed in March and, according to New Zealand Trade Minister David Parker, could come into effect later in 2018.

Parker noted that the CPTPP will provide New Zealand export-ers with preferential access for the

first time into Japan, the third larg-est economy and New Zealand’s fifth-largest export market.

The CPTPP will also be New Zealand’s first free trade agree-ment relationship with Canada (New Zealand’s 13th largest export market), Mexico (21st) and Peru (46th), Parker pointed out.

The Dairy Companies Associa-tion of New Zealand (DCANZ) welcomed the news that negotia-tors concluded the deal on the CPTPP.

“While the agreement does not go as far as we would like in terms of dairy access, there are some use-ful gains in markets such as Japan and Mexico,” said Malcolm Bai-ley, DCANZ chairman. “CPTPP market access outcomes are also critical to avoid New Zealand dairy exporters ending up at a tariff dis-advantage in key markets, includ-ing Japan.”

Over the past year, there have been some major trade develop-ments in the trans-Pacific region, including the conclusion of free trade agreement (FTA) negotia-tions between Japan and the Euro-pean Union (EU), DCANZ noted. The EU and Mexico are also look-

Two California Dairy Groups Seek Emergency Hearing To Increase State’s Milk PricesSacramento, CA—Two California dairy producer organizations have asked the California Department of Food and Agriculture (CDFA) to call an emergency hearing to consider one-year increases in the state’s milk prices.

California Dairy Campaign (CDC) and Western United Dairy-men (WUD) made the request late last week in a letter to Karen Ross, the CDFA’s secretary.

Their specific proposal would increase milk prices for the period Apr. 1, 2018, through Mar. 31, 2019, as follows: a 40-cent per hun-dredweight increase on Class 4b milk; a 10-cent increase on Class 4a milk; and a 60-cent increase on Class 1, 2 and 3 milk.

• See CA Hearing Sought, p. 11

CHEESE REPORTER January 26, 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

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608-316-3791MOIRA CROWLEY

Specialty Cheese Editore-mail: [email protected]

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Advertising & Marketing Directore-mail: [email protected]

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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

“cheese has become available in an almost mind-boggling array of packaging and flavor options, rang-ing from single-serving snack sticks and slices to dried cheese and unique added flavors.”

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

Innovate, Innovate, InnovateIf we heard it once, we heard it 100 times at this week’s Dairy Forum 2018 in Palm Desert, CA: innova-tion is one of the keys to a prosper-ous future for the dairy industry.

Indeed, innovation is why the dairy industry has gotten to where it is today — producing over 215 billion pounds of milk, up almost 30 billion pounds from just a decade ago, and selling zero pounds to the government — and it’s also how the dairy industry will deal with a projected 34 billion pounds of additional milk by the year 2027.

How important has innovation been for dairy industry growth in recent years? Pretty important, although sometimes success has been achieved by just sticking with the basics. More on that point later.

The cheese industry has cer-tainly benefitted greatly from innovation over the years, with everything from more specialty cheese production to resealable packaging. And more recently, cheese has become available in an almost mind-boggling array of packaging and flavor options, ranging from single-serving snack sticks and slices to dried cheese and unique added flavors.

And how has all of that inno-vation worked out for the cheese industry? Pretty nicely, at least from a statistical standpoint, with cheese production rising from about 8.3 billion pounds in 2000 to somewhere around 12.4 billion pounds in 2017, and per capita cheese consumption rising from about 29.8 pounds in 2000 to somewhere around 37 pounds in 2017.

Then there’s the yogurt category, which has grown from 1.8 billion pounds in 2000 to over 4 billion pounds for eight consecutive years (although, when the 2017 produc-tion numbers are released, they will show that yogurt output declined for the third straight year).

How much has innovation helped boost yogurt sales? Quite a bit. Obviously the best-known example here is Greek yogurt,

which was virtually unknown out-side Greece a decade ago and now accounts for a somewhere in the neighborhood of 40 percent of total US yogurt production.

But innovation has continued well beyond Greek yogurt. For example, Icelandic yogurt has only been widely available on the US market for a few years, but it’s prospects are considered bright enough that Lactalis, one of the largest dairy companies in the world, recently announced plans to acquire Icelandic yogurt pro-ducer siggi’s.

Then there’s Australian-style yogurt which, again, was hardly known outside its home country a decade ago. But Colorado’s noosa (which has been owned by pri-vate equity firm Advent Interna-tional since late 2014) has gained quite a following in recent years, and appears to have a very bright future, as does the overall yogurt category, despite its current strug-gles (generally attributed mainly to General Mills, which has been posting double-digit percentage declines in yogurt sales in some recent quarters).

One dairy industry segment that hasn’t been all that innova-tive is the fluid milk sector, which still derives the bulk of its sales from plastic gallon jugs. And so, in 2016, beverage milk sales fell below 50 billion pounds for the first time in several decades, and per capita fluid milk consumption has dropped from 247 pounds back in 1975 to 154 pounds in 2016.

Yes, there’s been some inter-esting innovation in the bever-age milk business in recent years — particularly single-serve con-tainers, which make milk as con-venient as competitive beverages such as soda and water.

But those single-serve contain-ers haven’t been enough to reverse the declines in sales and per capita consumption. And it’s worth not-ing that single-serve containers have now been around for a cou-ple of decades, meaning they really aren’t a new innovation any more.

Still, there’s reason for some optimism with respect to milk because of its growing use out-side the jug. Among other prod-ucts, there’s fairlife, a partnership between Select Milk Producers and The Coca-Cola Company. And there are also a growing num-ber of products made from coffee combined with milk, available everywhere from Starbucks to con-venience stores.

There is one interesting fluid milk statistic that illustrates that it isn’t always innovation that helps boost sales; sometimes it’s just changing consumer tastes and per-ceptions. That is, whole milk sales, after declining steadily for decades, suddenly started to increase in 2014, and also posted increases in both 2015 and in 2016.

This is undoubtedly due at least in part to the fact that recent nutrition research has found that saturated fat isn’t the dietary vil-lain it was long perceived to be, and also due to the fact that whole milk simply tastes better than any other type.

On a related note, butter has also been faring quite well in recent years, with per capita consumption rising from 4.5 pounds in 2000 to 5.7 pounds in 2016. Given that the majority of butter is still sold either in one-pound retail pack-ages or to industrial or foodservice users, it would appear that innova-tion hasn’t been the main driver of rising butter consumption (the aforementioned reduction in fat-phobia undoubtedly has helped).

One interesting aspect of the rise in per capita butter consump-tion is that butter production actu-ally declined slightly in 2014, 2015 and 2016. So for butter, one of the “innovations” that’s helped boost sales in recent years has been to import more butter from Ireland (US butter imports from Ireland rose from 5.3 million pounds in 2012 to almost 30 million pounds in 2016 and 41 million pounds in the first 11 months of 2017).

Innovation is key to the past, present and future of dairy.

CHEESE REPORTERJanuary 26, 2018

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

USDA’s Farm Bill And Legislative Principles Include Safety Net, Boosting CompetitivenessMifflintown, PA—US Secre-tary of Agriculture Sonny Perdue on Wednesday announced the US Department of Agriculture’s (USDA) Farm Bill and Legislative Principles for 2018 during a town hall at Reinford Farms here.

“These principles will be used as a road map; they are our way of letting Congress know what we’ve heard from the hard-working men and women of American agricul-ture,” Perdue said. “We understand it’s the legislature’s job to write the farm bill, USDA will be right there providing whatever counsel Con-gress may request or require.”

In the area of farm production and conservation, USDA supports legislation that will provide a safety net that helps farmers weather times of economic stress without distorting markets or increasing shallow loss payments; and that will promote a variety of innova-tive crop insurance products and changes, enabling farmers to make sound production decisions and to manage operational risk.

National Milk Producers Feder-ation (NMPF) is encouraged that USDA’s farm bill principles start with improving the farm safety net, said Jim Mulhern, NMPF’s president and CEO. The current Margin Protection Program (MPP) “has proven to be inadequate in providing help to America’s dairy farmers, and fixing it must be a pri-ority in 2018.”

USDA has taken “significant steps” to improve the MPP, “but more is needed,” Mulhern said. NMPF continues to work with USDA and House and Senate members to strengthen the MPP to ensure “meaningful assistance for those relying on it, and to find ways to expand risk management options for farmers. Making the MPP a reliable program for dairy farmers is vital to encouraging future farmer participation.

“Additional risk management tools are also critical for the future of our dairy farmer community,” Mulhern continued. “Raising the current expenditure cap on pro-grams available under USDA’s Risk Management Agency is vital to increasing the toolbox of options for farmers.”

In the area of trade and foreign ag affairs, USDA supports legisla-tion that will improve US mar-ket competitiveness by expanding investments, strengthening accountability of export promo-tion programs, and incentivizing stronger financial partnerships.

USDA also wants to ensure that the farm bill is consistent with US international trade laws and obli-gations; and wants to open for-eign markets by increasing USDA expertise in scientific and techni-cal areas to more effectively moni-

tor foreign practices that impede US ag exports and engage with foreign partners to address them.

In the area of food, nutrition and consumer services, USDA supports legislation that will harness Amer-ica’s agricultural abundance to sup-port nutrition assistance for those in need, and will strengthen the integrity and efficiency of food and nutrition programs to better serve participants and protect taxpayers.

USDA supports legislation that will assure the scientific integ-rity of the Dietary Guidelines for Americans process through greater transparency and reliance on the most robust body of scientific evi-dence, and that will support nutri-

tion policies and programs that are science-based and data-driven with clear and measurable outcomes for policies and programs.

In the area of marketing and regulatory programs, USDA sup-ports legislation that will:

—Enhance its partnerships and the scientific tools necessary to prevent, mitigate and, where appropriate, eradicate harmful plant and animal pests and diseases impacting agriculture.

—Safeguard the domestic food supply and protect animal health through modernization of the tools necessary to bolster biosecurity, prevention, surveillance, emer-gency response, and border secu-rity.

—Protect the integrity of the USDA Certified Organic seal and deliver effective oversight of

organic production practices to ensure that organic products meet consistent standards for all domes-tic and foreign producers.

—Ensure USDA is positioned appropriately to review produc-tion technologies if scientifically required to ensure safety, while reducing regulatory burdens.

In the area of research, educa-tion and economics, USDA sup-ports legislation that will, among other things, prioritize invest-ments in education, training and the development of human capital to ensure a workforce capable of meeting the growing demands of food and agriculture science; and empower public-private partner-ships to leverage federal dollars, increase capacity, and investments in infrastructure for modern food and agricultural science.


Signs Are Good For Cheese, Butter SalesDairy Situation & Outlook by Bob Cropp

Dr. Bob Cropp is a Professor Emeritus at the

University of Wisconsin-Madison

from our archives

50 YEARS AGOJan. 26, 1968: Chicago—Brown Cannon and Wallace Rasmussen have been elected to the newly-created positions of senior vice presidents for Beatrice Foods. The new positions were created for closer liaison between man-agement and field operations for the company, which will exceed $1 billion in sales for the first time this year.

Madison—Legislation prevent-ing sales of imitation and filled milk products is already being challenged and is not likely to serve as an effective protector of US dairy marketing, according to UW-Madison dairy economist Truman Graf. The industry is stiffening for a fight against imi-tation and filled milk products.

25 YEARS AGOJan. 29, 1993: Bloomer, WI—Mid-America Dairymen, Inc. announced this week that it will discontinue cheese production at its Italian cheese plant here this week. The co-op said the plant would continue its food ingredient dehydrating opera-tions in Bloomer and the action would have no impact on area farmers who sell to Mid-Am.

New York—A record 519 sig-nificant new lowfat/low choles-terol products were launched in seven food categories during 1992, 39 percent more than in 1991. Dairy continues to out-pace all other food categories, with 172 new items accounting for one-third of all new intro-ductions.

10 YEARS AGOJan. 25, 2008: Le Mars, IA—Wells’ Dairy Inc. has agreed to sell its yogurt production plant in Omaha, NE, to Torreon, Mex-ico-based Grupo LALA. Wells’ Dairy recently announced that it has decided to focus its efforts on ice cream and frozen novel-ties, and divest itself from the fresh and cultured dairy prod-ucts business.

Bakersfield, CA—Blue Ribbon Cheese Company announced this week that it has received approval from the Fresno County Planning Commission for construction of its state-of-the-art cheese plant in western Fresno county. The $300 million facility, first announced in 2006, is expected to begin opera-tions in 2010 and employ 300 local residents.

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Milk prices started to decline last December and will continue to fall first quarter of 2018. Class III reached its peak last year in November at $16.88 but fell to $15.44 in December and it looks like January will be down to near $13.90. Class IV reached its peak last year in August at $16.61 fell to $13.51 in December and will be near $13.30 in January.

While still not great, milk prices in 2017 were the highest since 2014 and averaged well above 2016. Class III averaged $16.17 compared to $14.87 in 2016. Class IV averaged $15.16 compared to $13.77 in 2016. But, another good year of milk prices is needed to help dairy farmers to recover finan-cially from low milk prices expe-rienced in 2015 and 2016. But, it now looks like 2018 milk prices will average lower than 2017.

The lower milk prices are being driven by relatively high milk production, a decline in beverage milk sales, slower growth in butter and cheese sales and a decline in nonfat dry milk/skim milk powder (NDM/SMP) exports, all resulting in relatively high stocks levels.

Adjusting for 2016 leap year 2017 milk production was up 1.7 percent. With milk production this strong favorable milk prices require good domestic sales and increased dairy exports.

Latest dairy export data for November shows 2017 exports did improve over 2016 particularly through July. Nonfat dry milk/skim milk powder exports ran above year ago levels starting the last half of 2016 through July of 2017. October NDM/SMP exports fell 34 percent below a year ear-

lier but improved to just 1 percent lower in November. Butter, cheese and total whey exports have been higher than a year ago with year-to-date exports up 13 percent, 22 percent and 8 percent respectively.

dairy exports will face increased competition

for markets as world milk production is expected to

increase.

But, with relatively strong milk production and slower domestic sales stocks of dairy products are relatively high. In recent months butter stocks have been below year ago levels, but butter stocks grew by 6.2 percent November to December and are now 1.8 per-cent higher. December American cheese stocks were 2.8 percent higher and total cheese stocks 6.9 percent higher. November nonfat dry milk stocks were 40.2 percent higher and dry whey stocks 65.6 percent higher.

The price of butter has held well above $2 per pound during December and into January. But much lower cheese and dry whey prices lowered the Class III price. On the CME 40-pound Cheddar blocks averaged $1.73 per pound in October, $1.66 in Novem-ber but just $1.49 in December. Blocks have been as low as $1.475 in January recovering to $1.57 only to fall back to $1.495. Bar-rels averaged $1.70 in October, $1.66 in November and $1.54 in

December. But in January barrels have been as low as $1.2175 with recovery to $1.36. Dry whey which was $0.51 per pound last April has been on a steady decline since with December $0.28 and now $0.25.

With the butter price steady above $2 per pound lower nonfat dry milk prices have lowered the Class IV price. Nonfat dry milk started 2017 at $1.00 per pound declined each month since to $0.68 in December with January as low as $0.67 and recovering to $0.7175.

USDA has revised down its forecast for 2018 milk production to a 1.5 percent increase from 0.2 percent more milk cows and 1.3 percent more milk per cow. While this is a smaller increase in milk production than last year it is still a lot of milk requiring good domestic sales and dairy exports.

There are good signs that butter and cheese sales could grow better in 2018 than last year. The econ-omy is doing better and both the consumer confidence index and restaurant performance indexes are favorable for good sales. But dairy exports will face increased competi-tion for markets as world milk pro-duction is expected to increase. For 2016 through the first half of 2017 milk production was below year ago levels in major dairy export-ers—EU, New Zealand, Australia and Argentina. But now milk pro-duction is running much higher. New Zealand is currently experi-encing a major drought which will dampen increases in their milk production the last half of their season. World demand is picking up which will absorb some of the increase in world milk production. China in particular has stepped up its imports.

So for 2018 we could see Class III prices in the $13’s first quarter, the $14’s second quarter, low $15’s third quarter and the mid to high $15’s fourth quarter and averaging around $14.90 for the year. Class IV could be in the $13’s through May, the $14’s through Septem-ber and the low $15’s last quarter and averaging about $14.25 for the year.

Current dairy futures for Class III and Class IV show even lower prices. But prices may well end up averaging a little higher. The low milk prices first half of the year could well lower both the number of milk cows and the increase in milk per cow. Dairy exports for the second half of the year could also do better than now expected.

December milk production may give some indication of milk pro-duction going into 2018. After declining for the previous three

• See Cropp, p. 6


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Tickets For World Championship Cheese Reception Now Available OnlineMadison—Tickets to the popu-lar Cheese Champion Reception, the signature public event of the upcoming World Championship Cheese Contest, are online.

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

Attendees will also have the opportunity to learn the intrica-cies of cheese evaluation from contest judges, and be present as the winner of the 2018 World Championship Cheese Contest is announced.

Tickets are $25 per person, and are on sale now at WorldChampion-Cheese.org. With a limit of 500 attendees, space is expected to sell out well in advance of the event.

For more information, call (608) 286-1001 or contact Kirsten Strohmenger Henning via email: [email protected].

Growing Global Dairy Demand, Rising Output Expected To Create Aggressive CompetitionDenver, CO—Growing global demand for milk, coupled with increased production in the US, the European Union (EU), and Oceania, will create aggressive competition for new markets in the future, according to a report recently released by CoBank’s Knowledge Exchange Division.

Many of the most important factors needed for milk production are lacking in the regions with the greatest demand growth potential, the report pointed out. Cows can tolerate a fairly wide range of tem-peratures, though production gen-erally slows toward temperature extremes, particularly heat, and humidity.

Most of the milk production takes place in the northern hemi-sphere, primarily in India, the EU, and the US, the report said. South America has pockets of strong pro-duction, particularly in Brazil and Argentina, and Oceania has an established industry, mainly geared toward serving the export markets.

Developing economies hold the most potential for increasing dairy sales, but most of that growth will come in the form of fresh, fluid demand in local markets, according to the report. Growth in demand from established dairy markets such as the EU and US will be much slower, but there will be opportunities for those regions to supply processed products to developing regions, beyond their fluid needs.

volume basis and has a substan-tial advantage compared to the US in butter and whole milk powder as well. The US is currently only competitive in terms of market share with these other regions on nonfat dry milk.

Among the leading dairy export-ing regions, the EU and Oceania own the clear majority of export market share. The US is well posi-tioned to compete, but is starting from behind and will need to inno-vate beyond traditional nonfat dry milk, the report said. Mexico is cur-rently the largest US cheese export market, but diversifying the export cheese customer base, especially into Southeast Asia could provide opportunities to grow market share in that category.

As consumer demand grows globally, dairy brands will become more globally focused. Some of these brands will be independent, while others may emerge out of existing cooperative brands. It will be challenging, however, for US-based cooperatives to operate in a similar fashion on an international scale, the report said.

Freshness and perishability are obvious concerns when dealing with fluid milk, but transporta-tion is always an added cost and a challenge with any dairy product. Where dairy production is feasible, some companies may find success by establishing processing plants near customers and working with local producers or cooperatives to source milk locally.

A robust system of traceability will be a challenge but a necessity for managing risk in an increas-ingly global supply chain.

As farms increase in size, large international processors are con-tracting with independent produc-ers in order to have a higher level of control over the milk supply.

One of the biggest hurdles to meeting new demand internation-ally is developing and offering products that are affordable for consumers. Sub-Saharan Africa is a prime example of a booming pop-ulation with low dairy consump-tion, but high opportunity. The biggest challenge in much of that region will be making dairy prod-ucts available in an affordable way.

By contrast, Southeast Asia is a region of rapid growth in demand and rising incomes to match. Asia has been quick to adopt new prod-ucts and has adapted them to fit into more typical flavor profiles of the region.

A prime example of this, the report said, is the success that Pizza Hut has found in the region. Pizza Hut now has over 1,300 stores in China, while Domino’s has strug-gled to grow much beyond 100. Domino’s primarily maintained its US recipes and delivery/take-out model, while Pizza Hut recognized the hesitance of Chinese consum-ers toward cheese and tomato and created pizzas with new toppings.

Regions with highly evolved dairy production and processing industries, but with mature dairy consumption markets, will com-pete with one another for the emerging demand, particularly in Sub-Saharan Africa and Southeast Asia, the report said. The ability to recognize and meet the needs of cultures with different preferences will be a key competitive advan-tage.

In 2016, Oceania was the domi-nant exporter of whole milk pow-der and butter, the report pointed out. The EU has 42 percent of the share of cheese exports on a


STATE Dec Dec % Change 2016 2017 Change Cows

California 3380 3371 -0.3 -14000

Wisconsin 2520 2546 1.0 -3000

New York 1246 1219 -2.2 5000

Idaho 1209 1206 -0.2 NC

Texas 953 1030 8.1 25000

Michigan 910 933 2.5 3000

Pennsylvania 911 916 0.5 NC

Minnesota 816 825 1.1 -5000

New Mexico 668 689 3.1 7000

Washington 547 541 -1.1 -1000

Ohio 459 463 0.9 2000

Iowa 426 442 3.8 5000

Arizona 402 408 1.5 7000

Colorado 338 369 9.2 11000

Indiana 350 355 1.4 2000

Kansas 289 298 3.1 3000

Vermont 229 227 -0.9 -1000

South Dakota 218 220 0.9 2000

Oregon 207 208 0.5 NC

Florida 218 208 -4.6 2000

Utah 177 188 6.2 5000

Illinois 160 165 3.1 NC

Virginia 144 147 2.1 -1000

millions of pounds 1,000 head

Milk Production by State


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tion totaled 9.813 billion pounds, down 0.9 percent from 2016’s fourth quarter. The state’s third-quarter output had been down 1.4 percent from a year earlier.

Wisconsin’s December milk production totaled 2.546 billion pounds, up 1 percent from Decem-ber 2016, due to 3,000 fewer milk cows but 25 more pounds of milk per cow. Wisconsin’s October-December milk production totaled 7.533 billion pounds, up 1.4 per-cent from the same period in 2016. The state’s July-September output had been up 1.2 percent from a year earlier.

December milk production in New York totaled 1.219 billion pounds, down 2.2 percent from December 2016, due to 5,000 more milk cows but 60 less pounds of milk per cow. New York’s fourth-quarter milk output totaled 3.639 billion pounds, down 1.1 percent from 2016’s fourth quarter. The state’s third-quarter production had been up 0.1 percent from 2016’s third quarter.

Idaho’s December milk produc-tion totaled 1.206 billion pounds, down 0.2 percent from December 2016, due to unchanged milk cow numbers and five less pounds of milk per cow. Idaho’s October-December milk production totaled 3.606 billion pounds, down 0.6 percent from the same period in 2016. The state’s July-September output had been up 0.1 percent from a year earlier.

December milk production in Texas totaled 1.03 billion pounds, up 8.1 percent from December 2016, due to 25,000 more milk cows and 55 more pounds of milk per cow. Fourth-quarter milk pro-duction in Texas totaled just under 3 billion pounds, up 6.4 percent

from 2016’s fourth quarter. The state’s third-quarter output had been up 11.3 percent from 2016’s third quarter.

Michigan’s December milk production totaled 933 mil-lion pounds, up 2.5 percent from December 2016, due to 3,000 more milk cows and 40 more pounds of milk per cow. Michigan’s October-December milk production totaled 2.773 billion pounds, up 2.9 per-cent from the same period in 2016. The state’s July-September output had been up 3.1 percent from a year earlier.

Pennsylvania’s December milk production totaled 916 mil-lion pounds, up 0.5 percent from December 2016, due to unchanged milk cow numbers and 10 more pounds of milk per cow. Pennsyl-vania’s fourth-quarter milk produc-tion totaled 2.693 billion pounds, up 1.1 percent from 2016’s fourth quarter. The state’s third-quarter output had been up 1.4 percent from 2016’s third quarter.

December milk production in Minnesota totaled 825 mil-lion pounds, up 1.1 percent from December 2016, due to 5,000 fewer milk cows but 40 more pounds of milk per cow. Minnesota’s Octo-ber-December milk production totaled 2.43 billion pounds up 1.8 percent from a year earlier. The state’s July-September output had been up 3.6 percent from the same period in 2016.

New Mexico’s December milk production totaled 689 mil-lion pounds, up 3.1 percent from December 2016, due to 7,000 more milk cows and 20 more pounds of milk per cow. New Mexico’s fourth-quarter milk production totaled 2 billion pounds, up 2.2 percent from 2016’s fourth quar-ter. The state’s third-quarter out-put had been up 5.3 percent from 2016’s third quarter.

Washington’s December milk production totaled 541 million pounds, down 1.1 percent from December 2016, due to 1,000 fewer milk cows and 15 less pounds of milk per cow. Washington’s Octo-ber-December milk production totaled 1.61 billion pounds, down 1 percent from the same period in 2016. The state’s July-September output had been down 0.8 percent from a year earlier.

All told for the 23 reporting states in December, compared to December 2016, milk production was higher in 17 states, with those increases ranging from 0.5 percent

in both Pennsylvania and Oregon to 9.2 percent in Colorado; and down in six states, with those declines ranging from 0.2 percent in Idaho to 4.6 percent in Florida.

For all 50 states during the fourth quarter, compared to the fourth quarter of 2016, output was higher in 26 states, with those increases ranging from 0.2 in Oregon to 7.5 percent in Colorado; down in 18 states, with those declines rang-ing from 0.4 percent in Vermont to 22.2 percent in Alaska; and unchanged in Arkansas, Georgia, Maine, North Carolina, Rhode Island and South Carolina.

16,500

17,000

17,500

18,000

18,500

19,000

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

US Milk Production2017 vs. 2016in mill ions of pounds

-15000

-10000

-5000

0

5000

10000

15000

20000

25000

CA WI ID CO NM TX MI SD IA

Change In Milk CowsDec 2016 vs. Dec 2017in 1000 head

NC

CroppContinued from p. 4

months December milk cow num-bers increased 3,000 head and stood at 0.5 percent higher than a year ago.

The increase in milk per cow continued below trend being just 0.6 percent higher resulting in December milk production 1.1 percent higher than a year ago to bring the total for the year to 215.4 billion pounds, 1.4 percent higher than 2016 (1.7 percent adjusting for 2016 leap year). Increases in milk production for the past four months have been about 1 percent.

If the increased in 2018 milk production ends up less than the 1.5 percent US Department of Agriculture is now forecasting,

milk prices could improve for the second half of the year.

The five leading dairy states—California, Wisconsin, Idaho, New York and Michigan — pro-duce 51 percent of total milk pro-duction.

In December three had Decem-ber production below a year ago—the states of California -0.3 percent, Idaho -0.2 percent and New York -2.2 percent; and two had more production—Wisconsin +1.0 percent and Michigan +2.5 percent. The combined December production of these five states was just 0.1 percent higher than a year ago.

Dr. Bob Cropp is the Profes-sor Emeritus at the University of Wisconsin-Madison


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New FDA Guidance Aims To Help Food Firms Comply With FSMA Supply-Chain ProvisionsFDA Also Issues Draft Guidance To Help Industry Meet Requirements Of Foreign Supplier Verification ProgramsWashington—The US Food and Drug Administration (FDA) this week released another chapter in the draft guidance that the agency has been issuing to help food com-panies comply with the regulation implementing the Food Safety Modernization Act’s (FSMA) requirements for hazard analysis and risk-based preventive controls for human food.

The new chapter is designed to help receiving facilities com-ply with the supply-chain program requirements of that regulation, and also is intended to help an entity other than the receiving facility conduct certain activities on behalf of a receiving facility.

General requirements for what a supply-chain program must include are: using approved suppliers; determining appropriate supplier verification activities (includ-ing determining the frequency of conducting the activity); conduct-ing supplier verification activities; documenting supplier verification activities; and, when applicable, verifying a supply-chain-applied control applied by an entity other than the receiving facility’s supplier and documenting that verification, or obtaining documentation of an appropriate verification activity from another entity, reviewing and assessing that documentation, and documenting the review and assessment.

The first factor that has to be considered in, among other things, approving suppliers, is the hazard analysis of the food, according to the guidance. To do so, a company must consider the nature of the hazard controlled before receipt of the raw material or other ingredi-ent.

If, for example, a company is purchasing a cheese to be used in a ready-to-eat (RTE) product it makes, and expects that a sani-tation control will be applied to address the environmental patho-gen Listeria monocytogenes, it could ask to review the cheese pro-ducer’s written procedures for the environmental monitoring it does to verify the sanitation controls.

The company also could period-ically verify its supplier’s controls by sampling and testing the cheese for L. monocytogenes. Because L. monocytogenes is a hazard for which there is a reasonable prob-ability that exposure to the hazard will cause serious adverse health consequences or death, it also would conduct an annual onsite audit to verify that its supplier con-

tion as the preventive controls or produce safety regulations, if appli-cable, and to ensure that the sup-pliers’ food is not adulterated or misbranded with respect to aller-gen labeling.

The FSVP regulation has a set of standard requirements for larger importers, and a modified set of procedures for importers that meet the definition of “very small importer.” There are also modified procedures that can be used when importing from certain small for-eign suppliers. The SECG focuses on the modified procedures for very small importers or importers of food from certain small foreign suppliers.

Another guidance docu-ment released this week by FDA addresses the phrase “same level of public health protection” that is used in both the FSVP regulation and the produce safety regulation.

The draft guidance aims to pro-vide a framework for determining the adequacy of a process, proce-dure, or other action intended to provide the same level of protec-tion as those required under the FSMA regulations for produce and for human or animal food.

Together, these draft guidances and the SECG provide a founda-tion of support for importers and food producers working to ensure that their suppliers are in com-pliance with the applicable food safety standards, FDA said.

trols L. monocytogenes when it manufactures the cheese by using a “kill step” such as pasteuriza-tion of the milk used to make the cheese and sanitation controls to significantly minimize contamina-tion from L. monocytogenes in the environment, with environmental monitoring to verify controls for L. monocytogenes.

Two additional guidance docu-ments released this week by FDA, a draft guidance and a Small Entity Compliance Guide (SECG), are meant to help industry meet the requirements of the Foreign Supplier Verification Programs (FSVP) regulation.

The FSVP regulation specifies the foods and importers to which the FSVP regulation applies and establishes requirements relating to: use of qualified individuals to conduct FSVP activities, hazard analysis, food and supplier evalua-tion, foreign supplier verification, corrective actions, recordkeeping, and importer identification for a food offered for entry into the US.

The draft guidance provides FDA’s current thinking on how best to comply with the FSVP requirements. Importers are responsible for ensuring that their foreign suppliers uses processes and procedures that provide at least the same level of public health protec-

Cheese, Dairy Firms Lauded With 2018 Good Food AwardsSan Francisco, CA— A num-ber of cheese and dairy com-panies have been chosen to receive Good Food Awards for taste, authenticity and respon-sible food manufacturing prac-tices.

Now in its eighth year, the Good Food Awards recognize value-added food and beverage products in 14 categories – beer, charcuterie, cheese, chocolate, cider, coffee, confections, fish, honey, oils, pantry, pickles, pre-serves, spirits and the new elix-irs category.

The 2018 winners come from 34 states, rising to the top among 2,057 entries in a blind tasting with 277 judges held in September.

The highest scoring entries were submitted to a rigorous vetting process to meet sustain-ability and social responsibility criteria to win an award, orga-nizers said.

Of the 199 winners selected from 280 finalists, 113 compa-nies are first-time winners, orga-nizers stated.

In the cheese category, awards were given in the fol-lowing classes: Fresh, Semi-Soft, Semi-Hard, Hard, and Yogurt. Winners include: Bellwether Farms, Whole Milk Basket Ricotta, Petaluma, CA; Boxcarr Handmade Cheese, Campo & Winsome, Hillsborough, NC; Briar Rose Creamery, Goat Milk Feta and Lorelei, Dundee, OR; Cascadia Creamery, Gla-cier Blue & Sawtooth, Trout Lake, WA; Consider Bardwell Farm, Rupert, West Pawlet, VT; Firefly Farms Creamery, Merry Goat Round Spruce Reserve, Accident, MD; Goldin Arti-san Goat Cheese, Cascadian Frechette, Molalla, OR; Green Dirt Farm, Prairie Tomme, Weston, MO; LaClare Farms Specialties, Evalon and Cave Aged Chandoka, Malone, WI; Landmark Creamery, Petit Nuage, Belleville, WI; Laura Chenel’s, Taupinière, Arcata, CA; Looking Glass Cream-ery, Bear Wallow, Asheville, NC; Montchevre, Fresh Goat Cheese, Belmont, WI; Nettle Meadow Farm, Kunik, War-rensburg, NY; Point Reyes Farmstead Cheese Company, Bay Blue, Point Reyes, CA; and Sweet Grass Dairy, Thomas-ville Tomme cheese, Thomas-ville, GA.

Mt. Capra of Chehalis, WA, earned an award for its Grass-Fed Goat Milk Ghee in the pan-try category.

For a full list of winners, visit www.goodfoodawards.org.


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FarmFirst Dairy Co-op Welcomes Jeff Lyon As New General ManagerMadison—Jeff Lyon has been appointed general manager of FarmFirst Dairy Cooperative here, effective Feb. 1, 2018.

Lyon succeeds David Cooper, who resigned from the coopera-tive effective Dec. 31, 2017, after serving as the co-op’s general manager for four years.

Lyon most recently spent eight years as deputy secretary at the Wisconsin Department of Agri-culture, Trade and Consumer Pro-tection (DATCP) under former Secretary Ben Brancel. Prior to his role as deputy secretary, Lyon worked for 22 years within gov-ernment relations for the Wis-consin Farm Bureau Federation, dealing with national affairs as well as state legislative and regu-latory issues.

In his new role, Lyon will lead FarmFirst through management of the co-op and its member pro-grams, representing members’ interests and concerns through industry initiatives and discus-sions, on both a regional and national level.

Cornell’s David Barbano Receives 2018 NCI Laureate Award Palm Desert, CA—Cornell University food science profes-sor David B a r b a n o received the N a t i o n a l C h e e s e In s t i tu t e ’ s (NCI) Lau-reate Award during this week’s Dairy Forum 2018.

Through his research, Barbano has devel-oped and introduced many indus-try advancements, including new cheese manufacturing processes that are cost effective and have helped to improve product safety. He also improved the functional-ity of Mozzarella and the sensory qualities of reduced and lowfat cheese.

Barbano has been affiliated with Cornell University for more than 50 years. After earning his bachelor’s and master’s degrees in food science, he joined the department as a professor in 1980.

Through his work at Cor-nell, Barbano has significantly improved testing methods and procedures for all dairy products, and his research on the chemis-try and processing of dairy foods

helped to develop many innova-tive solutions. He has published more than 85 peer-reviewed arti-cles related to the cheese industry and trained more than 60 gradu-ate students.

Schrack Farm Named Innovative Dairy Farmer Of The Year For 2018Palm Desert, CA—Schrack Farm Resources LP of Loganton, PA, was recognized as the 2018 Inno-vative Dairy Farmer of the Year for its creativity and forward-think-ing to achieve greater productiv-ity and better milk marketing.

Jim and Lisa Harbach and Kevin Schrack, Lisa’s brother, are partners in Schrack Farm Resources, and they operate the farm with the help of their chil-dren and grandchildren, who now represent the 11th generation on the land.

In operation since 1773, the farm is now managing a 1,100-head dairy herd while advocating for no-till farming, maintaining soil health and promoting aware-ness of the Chesapeake Bay water-shed. Schrack Farm Resources also was an early adopter of renewable energy technology and installed one of the first methane digesters in Pennsylvania. Now the farm generates revenue by selling power back to the grid and reduces elec-tricity costs for the farm.

Wells’ Brian Kraus Earns IDFA Food Safety Leadership AwardPalm Desert, CA—Brian Kraus, director of food safety and regu-latory compliance with Wells Enterprises, Inc., Received the International Dairy Foods Asso-ciation’s Food Safety Leadership Award here this week at Dairy Forum 2018.

During his tenure with Wells Enterprises, Kraus has built a strong food safety culture and emerged as a leader for the broader dairy products industry.

He has trained more than 60 Wells employees on effective preventive controls in ice cream production and serves as a sub-ject matter expert and trainer in a number of dairy industry food safety programs.

Kraus is also engaged with the industry’s Listeria Research Con-sortium, a group working to find new and innovative solutions for the control of Listeria monocy-togenes, and he is involved in research on the control of persis-tent Listeria in dairy processing environments. In addition, Kraus has provided his company and the industry with a much-needed tool for verification and validation in allergen control programs.

RECOGNITION

Rory Stamp of Dedalus Wine Shop Tops San Franciso Cheesemonger Invitational

San Francisco, CA—Rory Stamp, cheese monger at Dedalus Wine Shop, Market & Wine Bar of Burlington, VT, earned top honors here this week at the 2018 San Francisco Cheese-monger Invitational. This year’s sold-out Winter Cheesemonger contest drew 33 contestants from across the US. It is held in conjunction with the Summer Cheesemonger Invitational held annually in New York. We first added San Francisco in 2014 because traveling east was cost-prohibitive for many cheese mongers and we wanted to open the experience to West Coast industry members that are especially focused on that market, said Cheesemonger Invitational producer Liz Thorpe. Top cheese monger Stamp has several years of industry experience under his belt, previously working for Morning Glory Farm, Shelburne Farms, Formaggio Kitchen and Bee’s Knees Supply Co.

Applications For ADPI Jim Page Memorial Scholarship Due Jan. 31Elmhurst, IL—Applications are now being accepted for the Amer-ican Dairy Products Institute’s (ADPI) 2018 Jim Page Memorial Scholarship.

The one-year scholarship with a minimum grant of $1,000 is

awarded to the dependent of an employee or to an employee whose company is a member of ADPI.

The ADPI Jim Page Memorial Scholarship was created in memory of James J. Page, who demonstrated exceptional leadership skills while serving as the CEO of ADPI.

The application deadline is Jan. 31, and can be found online at www.adpi.org.

David Barbano


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More NAFTA Talks(Continued from p. 1)

economy,” according to a joint statement from Lawrence MacAulay, Canada’s minister of agriculture and agri-food, and Francois-Philippe Champagne, minister of international trade. “It will give the Canadian agricultural industry preferential access to all CPTPP countries and will provide new market access opportunities for a wide range of Canadian prod-ucts, including meat, grains, pulses, maple syrup, wines and spirits, sea-food and agri-food products.”

But the Dairy Processors Associ-ation of Canada (DPAC) said it is highly concerned by the announce-ment that Canada has concluded discussions on the CPTPP.

The dairy sector has been clear with the Canadian government that, following the withdrawal of the US last year, the revised CPTPP should reflect the economic reali-ties of the smaller group of coun-tries involved, DPAC noted. As Canada pursues an aggressive trade agenda, market access concessions can quickly add up, resulting in significant international access to Canada’s domestic dairy market and negative impacts on Canadian jobs and economic growth.

“As with all trade agreements, we firmly believe that one of the government’s key objectives in implementing the CPTPP must be to ensure that the Canadian dairy sector is well positioned for growth and investments in innovation,” said Mathieu Frigon, interim chief operating officer of DPAC.

DPAC called on the Canada to

demonstrate how the CPTPP isthe right deal for all of Canada, including its dairy sector.

While sectors see the CPTPP agreement as a positive, it is a “som-ber day” for the 221,000 Canadi-ans that depend on the dairy sector for their livelihood, according to Dairy Farmers of Canada (DFC).

“On the one hand, the Cana-dian government has repeatedly stated that it wants a vibrant, strong, and growing dairy sec-tor that creates jobs and fosters investments; on the other hand, it continues to carve out pieces of our domestic dairy market, first through CETA, and now through the CPTPP,” said Pierre Lampron, DFC’s president. He was referring to the Comprehensive Economic and Trade Agreement between Canada and the European Union.

“The government must under-stand that in continuing to make these concessions, they are putting the Canadian dairy sector in jeop-ardy,” Lampron added.

Renegotiation Of NAFTAThe CPTPP agreement was reached in the middle of the rene-gotiation of the NAFTA, another vehicle that threatens to weaken the Canadian dairy industry, DFC said. The Canadian government must realize that there is a cumu-lative effect to these carve outs, which cannot be understated.

It is critical that the Canadian government understand that when it comes to the renegotiation of NAFTA, they must not give up any more on the backs of farmers and workers in the Canadian dairy sector, DFC added.

“Our message to the Canadian government as it is negotiating NAFTA is simple: no more conces-sions, enough is enough, they can-not continue to carve out portions of the dairy sector,” Lampron said.

The sixth round of NAFTA negotiations is taking place from Jan. 23-28 in Montreal, Quebec.

The National Milk Producers Federation (NMPF) and the US Dairy Export Council (USDEC) said Thursday that the eradication of Canada’s milk pricing policies and tariff barriers must be a key focus of US government trade officials as members of the House Ways and Means Committee attend the NAFTA talks.

In a letter to US Reps. David Reichert (R-WA), chairman of the House Ways and Means trade subcommittee, and Bill Pascrell, Jr., that subcommittee’s top Dem-ocrat, NMPF and USDEC urged Ways and Means Committee members traveling to Montreal for the NAFTA talks to underscore three goals that would spur further growth of jobs in the US sector:

1) Removal of Canadian dairy programs that are harming US dairy exports. Dairy has for too long been excluded from NAFTA’s benefits vis a vis US-Canada trade. Finishing the work started under NAFTA by doing away with the reamining “exorbitant dairy tariff walls maintained by Canada is one of the most natural ways to deepen an FTA as robust as NAFTA.”

Tariffs are “far from our indus-try’s sole concern with respect to US-Canada dairy trade,” NMPF and USDEC noted. Canada’s Class 7 dairy pricing program has already

led to a 200 percent surge in Cana-dian skim milk powder exports to various markets around the world and slashed US exports of cer-tain dairy products in 2017. This “harmful and trade-distorting pro-gram must be extinguished” under NAFTA 2.0.

2) Preservation of the existing duty-free market access for agri-cultural goods where that already exists under NAFTA. For the dairy industry, this is primarily in US trade with Mexico; with-out NAFTA, US exporters could lose their number one market that accounts for over $1 billion in dairy exports each year.

3) Locking in and further improving upon the gains made over the course of the TPP process in key rules impacting agricultural trade such as on GIs and on sani-tary and phytosanitary issues.

“Our NAFTA partners agreed to important commitments in these areas under TPP; the TPP-11 announcement this week indicates that they remain willing to pro-ceed with those understandings,” NMPF and USDEC said. “It is only natural that we should har-ness those improvements and build upon them in the current NAFTA process.”

“Our exporters and their sup-plying farmers rely on those global markets, and Canada is using Class 7 to artificially compete in them at our expense,” said Tom Vilsack, USDEC’s president and CEO.

“Our concerns about this harm-ful program are very much shared by the world’s other leading dairy exporters as well,” Vilsack contin-ued.


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The industry also has to consider the messages it shares, Dykes said. Consumers still care about how products taste or what they cost, but they are demanding more.

They want to know the list of ingredients, and it better be a short one, he said. They want products that are produced responsibly, which means with equal respect for the farm animals, the employees and the environment. They want to connect with the values of the brand they’re purchasing, and they want to be engaged.

The industry can’t count on the US government’s Dietary Guide-lines for Americans and the rec-ommended three servings of dairy a day to deliver its message today, especially with Millennials, Dykes noted. They’re looking in new and different places for their informa-tion, such as family and friends, rather than government authori-ties, to inform their buying habits.

Maintaining consumer trust will be important in the years ahead, Dykes said; trust that the products are safe; trust that they’re being responsibly produced; and trust that the company values reflect their own values.

So how can the dairy indus-try let consumers know it hears them? One way, Dykes said, is for the industry to participate in the amplification efforts of Undeni-ably Dairy, the multi-year aware-

ness campaign by the Innovation Center for US Dairy.

Another is to support MilkPEP, whose five-year partnership with the US Olympic team and ongo-ing “Built With Chocolate Milk’ campaign are helping to kick-start consumption by encouraging con-sumers to reconsider drinking milk for a healthy life.

Enhanced communication cer-tainly helps, but providing new and innovative products and pack-aging that meet them where they live is another strong answer. And that, Dykes said, leads to the dairy industry’s second most important opportunity: innovation.

“We need to stay on top of emerging trends and find ways we can gain a market advantage,” he said. “We are in a new era where a gallon of milk is much more than a beverage. It represents a whole series of valuable ingredients and marketable fractions that will continue to emerge and lead to expanded market opportunities.”

The dairy industry will need the manufacturing capabilities and global regulatory oversight to ensure consumer safety and confi-dence in these new product oppor-tunities, Dykes pointed out.

For example, over the past several years, IDFA worked with member companies and dairy industry colleagues to develop and promote a new standard for dairy permeate powder that was adopted last summer by the Codex Alimen-tarius Commission. This new stan-

dard will help ensure greater global market access for US exporters of this dairy ingredient, Dykes com-mented.

He encouraged companies to challenge their product develop-ment teams to think about prod-ucts as solutions for a healthy lifestyle and not just filling a nutri-tional need.

“Our product offerings are com-peting against an ever-expanding mix of new products in innovative packaging that are meeting these lifestyle changes and preferences and providing much more than daily nutrition,” Dykes said.

For food and beverage products in general, protein continues to be in strong demand, especially with many consumers moving away from emty calories and the associ-ated challenges of obesity, Dykes pointed out.

“Milk is loaded with protein, so how can we create more value-added dairy products?” he asked.

The third biggest opportunity for dairy is the changing and grow-ing global marketplace, Dykes said. Gaining market access is an impor-tant goal for the US dairy indus-try, with its abundant supply of high-quality milk, excellent safety records and unmatched distribu-tion channels.

With US farm milk production continuing to outpace domestic consumption, the US will need exports to grow northward of 20 percent to take up that produc-tion volume, Dykes said. “And it’s imperative for us to have a level playing field in those markets to take full advantage.”

Dykes has heard from several exporters that foreign relations are challenging and complex but well worth the effort. Beyond current US trade partners, he thinks the US should be looking to develop-ing nations, possible in the Mid-dle East and Africa, because the demand for nutritional products, especially with protein, is great and offers new potential for growth.

“A proactive US trade policy is essential to help lead us into the future,” Dykes said.

EU, Chile Launch Talks To Modernize Trade Pact; EU Aiming To Gain GI Protections For FoodBrussels, Belgium, and Santiago, Chile—European Union (EU) negotiators were in Santiago, Chile, last week for the first detailed round of negotiations for the trade part of a new and modernized EU-Chile Association Agreement, according to the European Commission.

The aim of the negotiations is to conclude a comprehensive agreement with Chile to mod-ernize and replace the existing agreement establishing an associa-tion between the EU and Chile, according to negotiating objectives for the new EU-Chile agreement released this week by the Council of the European Union. The origi-nal agreement entered into force in 2003.

The EU’s negotiating directives want the modernized EU-Chile agreement to complement and build upon the TRIPS Agreement, aiming to ensure a high level of protection and enforcement of all forms of intellectual property rights, including geographical indi-cations (GIs).

More specifically regarding GIs, building on the high level of pro-tection for wines and spirits GIs already contained in the existing agreement, the modernized agree-ment should provide for direct pro-tection and effective recognition through the agreement, building upon TRIPS Art 23 (including against evocation), of the listed EU GIs for agricultural products, namely foodstuffs, wines and spirits; also provide for enhanced enforce-ment (including administrative/ex officio), and the possibility to add new GIUs.

Additional EU negotiating directives for the EU-Chile mod-ernized agreement include, among others: The agreement should aim

at full tariff liberalization, while providing for special treatment for products identified as sensi-tive, for which meaningful market access should be sought through, for instance, longer dismantling periods, or partial liberalization commitments (including tariff-rate quotas), taking into account EU offensive and defensive inter-ests notably in the agricultural sector. The parties should conclude

comprehensive provisions on Technical Barriers to Trade (TBT), building on and going beyond the WTO TBT Agreement. In order to ensure coherence

with other similar trade agree-ments concluded by the EU, the new agreement should incorporate the provisions of the current SPS agreement annexed to the existing agreement.


M A R C H 6 – 8

2018

THANK YOU TO OUR CONTEST SPONSORS:

E N T E R O N L I N E N O W !W O R L D C H A M P I O N C H E E S E . O R G

E N T R Y D E A D L I N E : J A N U A R Y 3 1 , 2 0 1 8

CA Hearing Sought(Continued from p. 1)

In 2016, Class 4b accounted for 46.4 percent of California pooled milk utilization, while Class 4a accounted for 32.3 percent, Class 1 for 13.0 percent, Class 2 for 5.4 percent and Class 3 for 2.9 per-cent.

California dairy families “have suffered severe economic hardship in the past three years. As a result, many have gone out of business or acquired massive debt on top of eroded equity,” CDC and WUD said in their letter to Ross.

“The significant negative mar-gins witnessed every quarter since January 2015 have placed many producers in a dire financial situ-ation,” the letter continued. Last year displayed a “modest recovery” in the markets but the improve-ments were short-lived and not significant enough to allow for pos-itive margins according to CDFA’s cost of production data, with the smallest loss recorded at 23 cents per hundredweight of milk pro-duced during the first quarter of 2017.

Last year “ended on a sour note,” with the estimated overbase price reaching the lowest level since June 2016, CDC and WUD reported.

At the beginning of 2018, pro-ducers are facing an even lower overbase price, with current com-modity prices yielding an overbase of $13.30 per hundredweight.

“Unfortunately, the forecast is even more concerning, with potential for prices to fall below that level in the next few months,” CDC and WUD said. Compared to the latest cost of production of $18.00 per hundredweight released by CDFA (third quarter of 2017), “this clearly illustrates how the price of milk will be insufficient to cover costs.”

If approved, the implementa-tion of a California federal milk marketing order could be another year away, CDC and WUD said. Until then, they urged the CDFA to increase milk prices to prevent the closure of more California dair-ies.

California’s milk produc-tion pattern relative to the rest of the US “is concerning,” with year-over-year milk production down 1.1 percent in November, when the entire US was up 1 percent, CDC and WUD noted. In December, California’s milk production was down 0.3 percent from December 2016, while milk production for the entire US was up 1.1 percent.

“This is not a recent pattern but rather a result of depressed margins these past three years,” CDC and WUD said. California’s milk pro-duction through November had declined in 32 of the previous 36 months.

Author David Gibbons Is Special Guest For 14th Oregon Cheese FestivalCentral Point, OR—Cheese mak-ers, enthusiasts and artisan food manufacturers will gather here March 17-18 for the 14th annual Oregon Cheese Festival.

Held under two large tents here at Rogue Creamery, participants will have the opportunity to meet cheese makers, sample products and attend demonstrations.

Creameries slated to attend include: Ancient Heritage Dairy, Briar Rose Creamery, By George Farm, Face Rock Creamery, La Mariposa Creamery, Ochoa’s Que-seria, Gia’s Cheesorizo, Portland Creamery, Rogue Creamery, Til-

lamook Creamery, TMK Cream-ery, Umapine Creamery, Walla Walla Cheese Company, Helvetia Creamery, Beehive Cheese, Fern-dale Farmstead, Cypress Grove, Skamokawa Farmstead Creamery, Nicolau Farms, Orland Farmstead Creamery, Pedrozo Dairy, and Cas-cadia Creamery.

To kick off the festival, a Meet the Cheesemaker dinner will be held on Friday, March 16 at Inn at the Commons in Medford, OR. The dinner to benefit the Ore-gon Cheesemakers will spotlight cheeses made by one of the festi-val’s artisan companies.

The four-course menu features maitake mushrooms, Oak Leaf Gouda, watercress and chest-nut vinaigrette; confit duck let,

Ochoa’s Queso Botanero, polenta cake and blackberry castrique; beef tenderloin, La Mariposa Pleasant Hill root vegetable gratin; Goldin Tomme de Sawtell and vanilla bean chantilly.

This year’s special guest and master of ceremonies is David Gibbons who currently writes the cheese column for Wine Spectator and a prolific contributor to The Oxford Companion to Cheese.

Dinner tickets are $125. A $15 entry fee includes tastings and demonstrations; tickets purchased at the door will be $20. In addi-tion, a $10 wine, cider, beer and spirit tasting ticket is available.

To purchase tickets in advance or for full details on the event, visit www.oregoncheesefestival.com.


www.cheesereporter.com/events.htmSUPPLIER NEWS

COMPANY NEWS

PEOPLE

We look at cheese differently.

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

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

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

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

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

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

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

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

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

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

•July 15-18: IFT Expo, McCor-mick Place, Chicago, IL. Visit www.iftevent.org.

•July 25-28: American Cheese Society (ACS) Annual Confer-ence, David L. Lawrence Con-vention Center, Pittsburgh, PA. For more information, visit www.cheesesociety.org.

•Aug. 9-10: IMPA Annual Meet-ing, Sun Valley Resort, Sun Val-ley, ID. More details available soon at www.impa.us.

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

PLANNING GUIDE

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

This HACCP (Hazard Analysis and Critical Control

Points) Course is accredited by the International HACCP

Alliance and provides HACCP training for food

processors. The relationship between food safety and

HACCP in the food manufacturing setting will be

discussed. HACCP plans, implementation and plan

maintenance will be developed in order to prevent

foodborne illness.

Upon successful completion of the course, participants

will:

• Be eligible for two college credits in the

Laboratory Science Technician program at

Southwest Tech.

• Receive a certificate of completion with the

International HACCP Alliance gold seal.

Apply Concepts Immediately Upon Completion

• Identify and control hazards in food processing

• Develop a HACCP plan

• Implement and maintain a HACCP program

• Understand importance of prerequisite programs

• Review good manufacturing practices

FEB 28 –MARCH 1, 2018

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

Health Science Building, Room 492

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

Certificate of Completion.

For [email protected] 608.822.2360

Register Online Today!www.swtc.edu/bisreg

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

• Receive a certificate of completion with the

Registration Still Open For Cornell’s Specialty Cheesemaking CourseIthaca, NY—The early registra-tion deadline for Cornell Uni-versity’s Specialty Cheesemaking Workshop here is Jan. 30, 2018.

The two-day advanced course will take place Feb. 21-22 on campus and is sponsored by the Cornell Dairy Foods Extension Program. Participants will apply scientific principles to make six varieties of cheese, from pasteuri-zation through curing.

The course will focus on milk

quality, affinage, and sensory eval-uation of cheese. It is designed for both artisan and commercial cheese makers, affineurs and QA/QC personnel.

It kicks off with a hands-on cheesemaking session led by Cor-nell’s Rob Ralyea and Mike Del-priore of Yancey’s Fancy. Students will make Gouda, Blue, Tomme de Savoie and a Brie-style cheese. Ralyea will also lead an overview discussion on steps in cheesemak-ing, followed by Tristan Zuber of Chr. Hansen on culture charac-teristics. Wednesday will wrap up with a cheese tasting event.

Cornell’s Carmela Beliciu will start the second day with a ses-sion on the sensory evaluation of cheese. Students will continue the hands-on cheese make in the lab and the workshop will conclude with a session on affinage tech-niques.

Registrations must be received by Feb. 13. The course is limited to the first 20 registrants.

Registration is available online at www.dairyextension.foodscience.cornell.edu.


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

rvin

gth

eWorld's Dairy Industry W

eekly

Since 1876

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

1. Equipment for Sale

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

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


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

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


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

2. Equipment Wanted

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

3. Products & Service

4. Walls, Flooring

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

4. Walls, Flooring

EPOXY OR FIBERGLASS floors, walls, tank-linings, and tile grouting. Installed by M&W Protective Coating Co. LLC. For more information, please call (715) 234-2251.

5. Real Estate

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

6. Promotion & Placement

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

6. Help Wanted

CHEESE/DAIRY PROCESSOR: We are looking for a production/lead cheese maker for our dairy operation on the west coast. Experience in pas-teurized process cheese, American-type-analog is a plus. For details please contact 702-591-6862.

8. Positions Wanted

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

10. Cheese & Dairy Products

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

11. Consultants

14. Warehousing

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

16. Help Wanted

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

Email: [email protected]



3010 TU-WaySimultaneously cuts either two 40-lb blocks

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General Machinery Corporation

1820 Single DirectionCheese Cutter

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

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General Machinery Corporation

Hydrauflake ChunkerFrozen Block Flaker

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

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

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3001EW TU-WAY Exact Weight Cheese Cutter

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

Western Repack

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

Handling cheese both as a service and on purchase.

Bring us your special projects

Western Repack, LLC(801) 388-4861

We Purchase Fines and Downgraded Cheese

Northwoods AssemblyNorthwoods AssemblyDivision of Wiskerchen Cheese Inc.

HAVE COLD STORAGE & ASSEMBLY NEEDS?WE WOULD LIKE TO TALK WITH YOU!

• Cold and Dry Storage • 24/7 Temperature and Security Monitoring• Basic Quality Assurance functions, including product

testing facilitation, if required • SQF Level III Compliance• Receipt and Inventory Electronic Management

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For more information, contact:

Roger Anderson: 715-305-0781 or John Wiskerchen: 715-652-3852

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]

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

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

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

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

Issue Date: 1/26/18

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January 24, 2017—AMS’ National Dairy Products Sales Report. Prices included are provided each week by manufacturers. Prices collected are for the (wholesale) point of sale for natural, unaged Cheddar; boxes of butter meeting USDA standards; Extra Grade edible dry whey; and Extra Grade and USPH Grade A nonfortified NFDM. •Revised

WEEK ENDINGStyle and Region Jan. 20 Jan. 13 Jan. 6 Dec. 30

40-Pound Block Cheddar Cheese Prices and Sales Weighted Price Dollars/PoundUS 1.5275 1.5221 1.5162 1.5208• Sales Volume PoundsUS 12,511,882 12,156,702 10,738,140 9,690,812•

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

Weighted Price Dollars/PoundUS 1.4964 1.5735 1.6333 1.6997 Weighted Price Adjusted to 38% Moisture US 1.5269 1.4962 1.5536 1.6156 Sales Volume PoundsUS 11,161,108 13,088,123 14,017,386 11,801,570Weighted Moisture Content PercentUS 34.98 34.80 34.82 34.77

Butter

Weighted Price Dollars/PoundUS 2.1821 2.2310• 2.2373 2.2244Sales Volume PoundsUS 4,523,841 4,185,961• 2,204,941 1,801,471

Dry Whey Prices

Weighted Price Dollars/PoundsUS 0.2691 0.2797 0.2790• 0.2812•Sales Volume US 6,370,731 7,210,985• 5,756,013• 5,538,966

Nonfat Dry Milk

Average Price Dollars/PoundUS 0.6946 0.6902• 0.6970 0.7064•Sales Volume PoundsUS 19,910,674 18,409,481• 12,367,624• 12,763,158•

DAIRY PRODUCT SALESDairy Product Stocks in Cold StorageTOTAL STOCKS AS REPORTED BY USDA (in thousands of pounds unless indicated) Public Stocks in All December 31, 2017 Warehouse Warehouses as a % of Stocks Dec 31 Nov 30 Dec 31 Dec 31 Nov 30 Dec 31 2016 2017 2017 2016 2017 2017

Butter 166,043 159,258 169,068 102 106 147,777

Cheese American 726,403 733,378 746,849 103 102 Swiss 24,200 24,933 26,367 109 106 Other 447,731 500,267 507,345 113 101

Total 1,198,334 1,258,578 1,280,561 107 102 863,140

575

600

625

650

675

700

725

750

775

2011 2012 2013 2014 2015 2016 2017

American-Type Cheese StocksDec 31 of Select Years; million lbs

75

100

125

150

175

2011 2012 2013 2014 2015 2016 2017

Butter StocksDec 31 of Select Years, million lbs

$1.35

$1.45

$1.55

$1.65

$1.75

$1.85

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

40-Pound Block Avg

CME vs AMS

-25

-21

-17

-13

-9

-5

-1

3

7

11

15

19

23

27

31

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

Block over Barrel Spread: Price DifferenceSince January 3, 2017 DAIRY FUTURES PRICES

SETTLING PRICE *Cash SettledDate Month Class III* Class IV* Dry Whey* NDM* Butter* Cheese*1-19 January 18 13.88 13.27 26.675 69.525 221.750 1.50701-22 January 18 13.89 13.27 26.700 69.525 221.750 1.50601-23 January 18 13.90 13.27 27.250 69.525 221.750 1.50701-24 January 18 13.89 13.25 27.250 69.550 221.750 1.50701-25 January 18 13.92 13.25 27.250 69.700 220.625 1.50701-19 February 18 13.56 13.40 25.675 74.000 218.000 1.48001-22 February 18 13.60 13.40 25.775 73.900 216.500 1.48701-23 February 18 13.51 13.40 26.550 73.800 216.250 1.47401-24 February 18 13.42 13.40 25.250 73.000 216.025 1.46501-25 February 18 13.32 13.25 26.250 73.025 215.125 1.4580

1-19 March 18 13.54 13.54 25.900 75.775 217.625 1.47701-22 March 18 13.61 13.62 26.025 76.475 217.525 1.48501-23 March 18 13.61 13.62 27.450 76.500 218.000 1.47501-24 March 18 13.53 13.50 26.975 75.400 217.750 1.46401-25 March 18 13.43 13.46 27.350 75.000 216.900 1.4620

1-19 April 18 13.71 13.71 26.075 77.150 219.000 1.50201-22 April 18 13.81 13.81 26.125 78.025 219.450 1.50101-23 April 18 13.83 13.82 27.550 77.925 219.750 1.49501-24 April 18 13.73 13.81 27.500 77.025 219.425 1.49001-25 April 18 13.68 13.71 27.750 76.550 218.600 1.4850

1-19 May 18 14.07 13.92 26.750 78.775 220.250 1.53001-22 May 18 14.14 13.99 27.000 80.725 220.250 1.53401-23 May 18 14.18 14.05 28.025 79.950 221.000 1.52601-24 May 18 14.09 14.05 27.750 79.000 221.000 1.51901-25 May 18 14.06 13.97 28.025 78.050 220.250 1.51901-19 June 18 14.52 14.13 27.500 80.850 222.025 1.58101-22 June 18 14.54 14.23 27.500 81.675 222.225 1.57501-23 June 18 14.52 14.25 28.875 81.600 222.500 1.56601-24 June 18 14.54 14.25 28.250 80.925 222.525 1.56301-25 June 18 14.48 14.23 28.600 79.650 221.825 1.56001-19 July 18 15.08 14.33 27.500 82.250 223.350 1.63501-22 July 18 15.10 14.42 27.525 83.275 225.750 1.63001-23 July 18 15.11 14.43 29.025 82.775 224.000 1.62501-24 July 18 15.05 14.43 29.000 82.500 224.375 1.61501-25 July 18 15.07 14.43 29.250 81.750 223.475 1.61501-19 August 18 15.52 14.53 28.000 83.850 225.500 1.66801-22 August 18 15.48 14.58 28.000 85.000 225.500 1.66501-23 August 18 15.48 14.60 29.100 84.125 225.500 1.66201-24 August 18 15.45 14.60 29.275 83.725 225.625 1.65501-25 August 18 15.45 14.56 29.275 83.275 225.375 1.6550

1-19 September 18 15.56 14.68 27.825 85.300 226.250 1.68301-22 September 18 15.61 14.72 28.025 86.500 226.250 1.68001-23 September 18 15.60 14.72 28.525 85.450 226.250 1.67601-24 September 18 15.61 14.72 29.400 85.400 227.050 1.67301-25 September 18 15.64 14.72 29.400 84.700 227.050 1.67201-19 October 18 15.72 14.89 28.500 86.875 226.050 1.69501-22 October 18 15.74 14.90 28.600 88.050 226.050 1.69001-23 October 18 15.78 14.90 29.425 86.975 226.050 1.68701-24 October 18 15.78 14.90 29.800 89.975 226.050 1.68801-25 October 18 15.75 14.90 29.800 86.000 226.050 1.68801-19 November 18 15.70 14.98 29.000 88.225 226.025 1.68501-22 November 18 15.70 14.98 29.250 89.350 226.025 1.68301-23 November 18 15.70 14.98 29.550 88.525 226.025 1.68201-24 November 18 15.71 14.98 29.850 87.900 226.025 1.68001-25 November 18 15.68 14.98 29.850 87.000 226.025 1.6830

Interest - Jan. 25 25,925 1,529 4,118 7,625 6,975 29,574


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

01/22/18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,253 92,87201/01/18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,950 96,245Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,303 -3,373

NATIONAL - JAN . 19: Milk availability is plentiful for cheese production needs . Reported spot milk prices from contacts in the Midwest ranged from $3 under to $ .75 over Class III . Cheese output is active nationwide, parallel to abundant milk supplies . Cheese inventories are heavy in all regions . In the Midwest, to combat increasing supplies, some cheese plant manag-ers report cutting back work schedules to four-day workweeks . Cheese demand is fair . In the West, cheese manufacturers report solid Mozzarella sales for the pizza season, but the retail demand for most cheese types is indifferent . The cheese market tone is shaky .

NORTHEAST- JAN . 24: Cheese processors in the Northeast are staying active as milk is clearing into vats on steady schedules . Cheese market participants report milk availability is generally steady as milk is moving when it needs to . Cheese spot trading activities are steady to light as prices are fairly stable this week, yet some market participants are not purchasing off the spot market .

Wholesale prices, delivered, dollars per/lb:Cheddar 40-lb blocks: $1.9825 - $2.2675 Process 5-lb sliced: $1.4600 - $1.9400Muenster: $1.9675 - $2.3175 Swiss Cuts 10-14 lbs: $3.3025 - $3.6250

MIDWEST AREA - JAN . 24: Cheese plant managers experiencing seasonal slow-downs are taking time to make updates and repairs in their respective facilities . Other Mid-western cheesemakers are continuing seven-day workweeks, and plan to continue for the foreseeable future . Some discounted spot milk changed hands, and a number of cheese producers reported that offers have yet to decrease . Class III spot milk ranged from $3 under to $1 over . Barrel processors are facing a stark disadvantage right now regarding market prices, and they continue to report fairly slow orders . Cheese inventories vary, but as milk supplies and cheese production have recently been heavy, overall supplies are available . The cheese market tone has yet to find its footing . Much of the last quarter of 2017 presented cheese sellers and buyers with a confounding inverted price gap . Up to this point in 2018, the price gap, although no longer inverted, has grown to what contacts assert to be antithetical to a stable market .

Wholesale prices delivered, dollars per/lb: Process 5# Loaf: $1.4150 - $1.7750Brick/Muens 5# Loaf: $1.8900 - $2.3150 Cheddar 40# Block: $1.6175 - $2.0125Monterey Jack 10#: $1.8650 - $2.0700 Blue 5# Loaf: $2.1575 - $3.1450Mozzarella 5-6# (LMPS): $1.6900 - $2.6300 Grade A Swiss 6-9#: $2.8200 - $2.9375

WEST - JAN . 24: Readily available milk in the West is stimulating more cheese produc-tion . Manufacturers are doing their best to use their extra milk . Cheese supplies remain substantial despite processors’ efforts to keep inventories at check . Some contacts suggest that domestic retail sales for Cheddar are solid . In addition, with the approaching Super Bowl, interest for Mozzarella is helping support the market . However, international cheese inquiries are slower for some sellers, while others report strong demand partly due to recent drop in spot prices .

Wholesale prices delivered, dollars per/lb: Process 5# Loaf: $1.4025 - $1.6600Cheddar 40# Block: $1.6500 - $2.0950 Cheddar 10# Cuts: $1.8300 - $2.0500Monterey Jack 10#: $1.8400 - $2.0000 Grade A Swiss 6-9#: $2.8800 - $3.3100

FOREIGN -TYPE CHEESE - JAN . 24: The European Union cheese market is active . However, market participants have doubts about how the EU commission will deals with the stocks of cheese . In Germany, semi-hard cheese prices are stabilizing . Supplies are declining, whereas demand is trending higher . As milk availability continues to be high in the EU, cheese production is active . Cheese exports sales are good . In the first eleven months of 2017, exports of EU cheese was above that of the same period in the previous two years, while imports have shrunk by 8 percent . In the US, the prices for wholesale Blue, Gorgonzola, Parmesan (Italy), and Romano are up by $ .0700 while all other prices are flat compared to the previous week .

Selling prices, delivered, dollars per/lb: Imported DomesticBlue: $2.6400 - 5.2300 $2.0350 - 3.5225Gorgonzola: $3.6900 - 5.7400 $2.5425 - 3.1260Parmesan (Italy): 0 $3.4250 - 5.5150Romano (Cows Milk): 0 $3.2250 - 5.3750Sardo Romano (Argentine): $2.8500 - 4.7800 0Reggianito (Argentine): $3.2900 - 4.7800 0Jarlsberg (Brand): $2.9500 - 6.4500 0Swiss Cuts Switzerland: 0 $3.3400- 3.6625Swiss Cuts Finnish: $2.6700- 2.9300 0

NATIONAL - JAN . 19: Cream into butter production is readily available . Some pro-ducers are only churning to fill immediate orders, however others are focusing on pro-duction for the spring retail push . Inventories are fairly healthy as industry contacts report moving regular contract loads . Demand is mixed as some market participants are pur-chasing steady loads, on the other hand oth-ers are holding off on purchases while there are offers on the spot market .

NORTHEAST - JAN . 24: Butter manu-facturing is very active at major production facilities . Some butter producers are steadily building onto stocks as cream markets offer substantial volumes of surplus cream at equitable multiples . However, transportation issues have hampered cream distribution . The good news for eastern producers is that retail butter sales remain strong . Bulk transactions could potentially spike as some processors evaluate purchasing large vol-umes for micro-fixing . Interest from export markets, for now, is modest with rather steady exchanges taking place . However, the market anticipates a projected upsurge in global sales .

CENTRAL - JAN . 24: Due to the snowstorm early in the week, butter plant managers in areas affected were down on employees and forced to cut back on pro-duction . In addition, the storm caused some

hauling delays and trucking obstacles for butter producers . In other areas, production remained steady . Cream multiples into butter production ranged from flat market to 1 .13 for consecutive weeks . There are expec-tations of available cream supplies to last through February . Unsalted butter demand is healthy, and some producers are report-ing limited supplies . Salted butter supplies are building up for spring . The butter mar-kets continue to wend slowly downward, but many contacts are not overly concerned . In recent history, as butter prices have ebbed, buying activity has increased .

WEST - JAN . 24: Western butter makers say the market tone is quiet, reined in by the trammels of seasonally slower consumer bak-ing . Retail orders are diminished due to the break between the major winter and spring holidays . However, a few buyers are inter-ested in getting coverage for the upcoming spring festivities . Butter production is active amidst the abundant supplies of cream . Man-ufacturers are running churns near capacity, but would be happy to sell off a few loads of cream to take the pressure off . Much of the production focus is on filling current orders and making bulk butter to put away into stor-age . Bulk butter pricing in the West this week is generally 2 cents below to 6 .5 cents above the market . However, a few market contacts report several situational spot loads of butter moving as low as 7 below .

ORGANIC DAIRY - RETAIL OVERVIEW

Advertisement numbers are 3 percent higher for conventional dairy items, but 12 percent lower for organic dairy items . Ad numbers for conventional 1-pound butter increased 1 percent, with a US weighted average advertised price of $3 .80, up 33 cents . There are no reported sale prices for organic butter this week . Conventional sour cream ad numbers increased 18 per-cent, with an average price of $1 .67 . Organic sour cream ad numbers decreased 64 percent,with an average price of $2 .29 . The national weighted average advertised price of conventional 8-ounce block cheese is $2 .28, down 21 cents from last week . Organic 8-ounce blocks aver-age $2 .49, resulting in an organic premium of 21 cents . The price of conventional 8-ounce shred cheese, $2 .27, is down 13 cents from last week . Organic 8-ounce shred cheese aver-ages $2 .90, resulting in an organic premium of 63 cents . Conventional cheese ad numbers decreased 7 percent, but organic cheese ad numbers increased 8 percent . unce containers is priced at $0 .88, resulting in an organic premium of 36 cents .The conventional-organic milk half gallon price spread is $1 .86 . The spread is the difference between the conventional milk half gallon average advertised price, $1 .72, and the organic milk half-gallon price, $3 .58 .

National Weighted Retail Avg Price: Cheese 8 oz block: $2.49Cheese 8 oz shred: $2.90Cream Cheese 8 oz: $2.50Yogurt 4-6 oz: $0.88Greek Yogurt 4-6 oz: $1.25

Greek Yogurt 32 oz: $5.41Ice Cream 48-64 oz: $5.99Milk ½ gallon: $3.58Milk gallon: $6.99Milk UHT 8 oz: $0.97 Sour Cream 16 oz: $2.29

RETAIL PRICES - CONVENTIONAL DAIRY - JANUARY 26Commodity

Butter 1#

Cheese 8 oz block

Cheese 1# block

Cheese 2# block

Cheese 8 oz shred

Cheese 1# shred

Cottage Cheese

Cream Cheese

Ice Cream 48-64 oz

Flavored Milk ½ gallon

Flavored Milk gallon

Milk ½ gallon

Milk gallon

Sour Cream 16 oz

Yogurt (Greek) 4-6 oz

Yogurt (Greek) 32 oz

Yogurt 4-6 oz

Yogurt 32 oz

US NE SE MID SC SW NW

3 .80 4 .10 3 .97 3 .37 2 .65 2 .85 3 .24

2 .28 2 .11 2 .40 2.09 2.07 2 .79 1 .79

3 .63 3 .83 3 .81 3 .99 2 .73 2 .99 NA

7 .13 NA 6 .48 NA NA 7 .45 7 .99

2 .27 2 .37 2 .27 2 .00 2 .15 2 .47 2 .06

3.69 3 .12 4 .02 3 .72 2 .67 2 .49 3 .99

1 .81 2 .14 1 .67 2 .03 1 .44 1 .62 1 .99

1 .80 1 .52 2 .00 1 .85 1 .63 2 .02 1 .79

3.18 2 .87 2 .89 3 .17 3 .38 3 .80 2 .94

1 .91 NA 2 .50 1 .48 .99 NA 1 .72

2 .08 NA NA 3 .29 NA NA NA

1 .72 NA 2 .23 .79 1 .24 .99 .99

2 .82 2 .59 2 .49 2 .54 3 .06 2 .96 NA

1 .67 1.75 1 .54 1.72 1 .52 1 .66 1 .99

.95 .99 .97 .94 .96 .89 .90

4.73 4 .69 NA 4 .99 4 .99 5 .00 4 .16

.52 .55 .50 .54 .52 .56 .37

2 .27 2 .35 2 .49 NA 2 .50 2 .50 1 .83

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 - JANUARY 25NDM - CENTRAL: Low/medium heat NDM prices in the Central region increased on the top of the range and both ends of the mostly price series . Low/medium heat NDM spot market activity has increased for consecutive weeks . However, this week brought a notable directional shift in prices . Multiple factors have propelled low/medium heat NDM prices, and more trans-actions are now being reported at $ .70 and higher . Regional availability, brand specific purchasing and GDT/CME upticks are also providing a bullish bounce . Some contacts have speculated that low/medium heat NDM may have experienced the lowest prices of the year already . Others have a more bearish outlook and forecast the price uptick to be fleeting .

NDM - EAST: Nonfat dry milk of the low/medium heat variety posted steady to higher prices in the range on active f .o .b . spot trades . In addition, NDM prices transferred higher through the mostly price series . Customers with brand specific interests strengthened prices representing the uppermost end of the range . Buyers,

in general, appear bewildered by current market dynamics and some subsequently shirk producers’ offers, viewing the low/medium heat NDM market in an undesir-able light . Nonetheless, buyer demand has increased with speculative buying . NDM production is steady . Producers’ stocks are mixed, with some manufacturers in good balance while others run long . The market undertone resonates uncertainty in this newfound bullish run .

NDM - WEST: Free on board spot prices for western low/medium heat NDM adjusted up on both the range and mostly series . Nevertheless, the market remains unsettled for many industry participants . For example, several buyers/end users think that the current rebound of NDM spot values does not make sense with the existing market tone, as large stocks are still available throughout the region to cover any spot need . Conversely, some manufacturers justify the increase in NDM prices mainly due to an improvement in demand from the bakery sector as the spring baking season approaches .

WHOLESALE BUTTER MARKETS


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

‘07 13.56 14.18 15.09 16.09 17.60 20.17 21.38 19.83 20.07 18.70 19.22 20.60‘08 19.32 17.03 18.00 16.76 18.18 20.25 18.24 17.32 16.82 17.06 15.51 15.28‘09 10.78 9.31 10.44 10.78 9.84 9.97 9.97 11.20 12.11 12.82 14.08 14.98‘10 14.50 14.28 12.78 12.92 13.38 13.62 13.74 15.18 16.26 16.94 15.44 13.83‘11 13.48 17.00 19.40 16.87 16.52 19.11 21.39 21.67 19.07 18.03 19.07 18.77‘12 17.05 16.06 15.72 15.72 15.23 15.63 16.68 17.73 19.00 21.02 20.83 18.66‘13 18.14 17.25 16.93 17.59 18.52 18.02 17.38 17.91 18.14 18.22 18.83 18.95‘14 21.15 23.35 23.33 24.31 22.57 21.36 21.60 22.25 24.60 23.82 21.94 17.82‘15 16.18 15.46 15.56 15.81 16.19 16.72 16.33 16.27 15.82 15.46 15.30 14.44 ‘16 13.72 13.80 13.74 13.63 12.76 13.22 15.24 16.91 16.39 14.82 16.76 17.40‘17 16.77 16.88 15.81 15.22 15.57 16.44 15.45 16.57 16.36 16.69 16.88 15.44

CME CASH PRICES - JANUARY 22 - 26, 2018Visit www.cheesereporter.com for daily prices

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

MONDAY $1.3650 $1.5700 $2.1200 $0.7075 January 22 (+2) (+½) (NC) (NC)

TUESDAY $1.3650 $1.5600 $2.1150 $0.7175 January 23 (NC) (-1) (-½) (+1)

WEDNESDAY $1.3600 $1.4950 $2.1200 $0.7175 January 24 (-½) (-6½) (+½) (NC)

THURSDAY $1.3200 $1.4750 $2.1225 $0.7175 January 25 (-4) (-2) (+¼) (NC)

FRIDAY $1.3200 $1.4725 $2.1300 $0.7100January 26 (NC) (-¼) (+¾) (-¾)

Week’s AVG $1.3460 $1.5145 $2.1215 $0.7140 Change (+0.0229) (-0.0118) (-0.0191) (+0.0090)

Last Week’s $1.32313 $1.52625 $2.14063 $0.7050AVG

2017 AVG $1.4670 $1.6525 $2.2075 $0.9705Same Week

MARKET OPINION - CHEESE REPORTERCheese Comment: : One car of blocks was sold Monday on a bid at $1.5700, which raised the price. No blocks were sold Tuesday; the price declined on an uncovered offer of 1 car at $1.5600. Five cars of blocks were sold Wednesday, the last on an offer at $1.4950, which reduced the price. Three cars of blocks were sold Thursday, the last 2 at $1.4750, which reduced the price. There were no block sales on Fri-day; the price declined on an uncovered offer of 1 car at $1.4725. The barrel price increased Monday on an offer-based sale of 1 car at $1.3650, fell Wednesday on offer-based sales of 2 cars at $1.3600, and declined Thursday on an offer-based sale of 1 car at $1.3200. A total or 21 truckloads of 40 pound blocks have been traded so far in January.

Butter Comment: The butter price declined Tuesday on a bid-based sale of 1 car at $2.1150, increased Wednesday on an unfilled bid for 1 car at $2.1200, rose Thursday on a bid-based sale of 1 car at $2.1225, and increased Friday on an offer-based sale of 1 car at $2.1300.

NDM Comment: The nonfat dry milk price increased Tuesday on bid-based sales of 2 cars at 71.75 cents, then declined Friday on a bid-based sale of 1 car at 71.0 cents.

WHEY MARKETS - JANUARY 22 - 26, 2018RELEASE DATE - JANUARY 25, 2018

Animal Feed Whey—Central: Milk Replacer: .1500 (NC) – .2475 (NC)

Buttermilk Powder: Central & East: .6800 (+3) – .8500 (NC) West: .6800 (+3) – .7700 (NC) Mostly: .7000 (+1) – .7300 (+1)

Casein: Rennet: 2.0850 (NC) – 2.1425 (NC) Acid: $2.9500 (NC) - $3.3000 (NC)

Dry Whey—Central (Edible): Nonhygroscopic: .1800 (NC) – .2900 (NC) Mostly: .2150 (NC) – .2700 (NC) Dry Whey–West (Edible): Nonhygroscopic: .2000 (NC) – .3100 (NC) Mostly: .2400 (NC) – .2800 (NC)

Dry Whey—NE: .2500 (NC) — .3125 (-¾)

Lactose—Central and West: Edible: .1600 (NC) –.3500 (NC) Mostly: .1800 (NC) –.2450 (NC)

Nonfat Dry Milk —Central & East: Low/Medium Heat: .6500 (NC) – .7900 (+7) Mostly: .7000 (+3) –.7250 (+2½) High Heat: .8200(NC) – .9800 (NC)

Nonfat Dry Milk —Western: Low/Medium Heat: .6500 (+2) – .7600 (+2) Mostly: .6800 (+1) –.7300 (+1) High Heat: .8500 (NC) – $.9450 (+2½)

California Weighted Average NFDM: Price Total Sales January 19 $0.7122 9,198,829 January 12 $0.7110 5,284,310 Whey Protein Concentrate—Central and West: Edible 34% Protein: .5900 (-1) – .9400 (NC) Mostly: .6500 (NC) – .8000 (NC)

Whole Milk—National: 1.3500 (NC) – 1.5000 (+5) Visit www.cheesereporter.com for dairy and historical cheese, butter, and whey prices


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Fonterra Australia Plans $165 Million In Capital Spending For Cheese, Other Plant ExpansionsMelbourne, Australia—Fonterra Australia is matching its push to secure additional milk volumes with more than AU$165 million in capital expenditures in this financial year at key sites in Vic-toria and Tasmania in a move to increase capacity and meet unique dairy demand opportunities.

The investment is comprised of new investment of around AU$130 million to put in 500 mil-lion liters of additional capacity, and a further AU$35 million for a range of annual site improvements as part of its regular capital invest-ment plan in Australia.

The new expansion includes:—AU$125 million expansion

at Fonterra Australia’s flagship Stanhope cheese facility in north-ern Victoria which will double the size of the cheese plant.

—AU$12 million investment in Tasmania, which includes expan-sion to its Wynyard cheese plant and an increase in lactose process-ing capacity at Spreyton.

—A further AU$7 million expansion at the Darnum nutri-tionals plant in Gippsland as well as the installation of two robotic palletizers in Bayswater in in eastern Victoria to improve efficiency.

—AU$13.5 million for projects at Cobden and another AU$8.6 million at Dennington in western Victoria.

Fonterra Australia will play to its strengths in cheese, whey, nutritionals and butter, increasing production capacity to meet rising domestic and global demand, but filling its expanded capacity would mean securing more supply, said Rene Dedoncker, managing direc-tor of Fonterra Australia.

He said the Stanhope invest-ment largely focuses on expanding the site’s cheesemaking capacity, and doubling the daily milk vol-umes it can process. The invest-ment will double the size of the cheese plant, increasing cheese production by a further 35,000 metric tons (77.2 million pounds) for a range of cheeses, including Cheddar and Mozzarella. Stanhope can currently produce 45,000 met-ric tons of product including Ched-dar, Mozzarella, Gouda, Parmesan, Romano and Ricotta.

The Wynyard investment will support an annual increase in Cheddar cheese production by around 3,900 metric tons and increase the daily milk volumes processed from 1.3 million liters to 1.5 million liters.

At Cobden, $13.5 million is ear-marked for robotic palletizers and improvements to the butter plant, while another $8.6 million is being invested at Dennington in a new packing line.

t h w s l y cheese reporter 26, 2018.pdfincrease milk prices for the period apr. 1, 2018, through...

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