diac to vote on ï¬nal package of recommendations march 3

Reprinted with permission from the Feb. 18, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

Obama releases fiscal 2012 budget proposalWASHINGTON — The Obama administration this week released its 2012 budget proposal with an overall price tag of $3.7 trillion, while the U.S. House introduced a Continuing Resolution (CR) bill to fund the federal government through Sept. 30, 2011.

Obama’s proposed budget, put together by Office of Manage-ment and Budget (OMB) Director Jack Lew, would attempt to cut the growing deficit and slash or eliminate more than 200 federal programs.

The International Dairy Foods Association (IDFA) notes that according to official estimates, the proposal would reduce the 10-year budget deficit by $1.1 trillion. Administration officials say the deficit this year will be $1.6 trillion, shrinking down to $1.1 trillion in the coming year. The deficit is forecast to shrink down to a low of $600 billion a year by 2018 but will grow again

Saputo Inc. to acquire parent company of DCI Cheese Co. MONTREAL — Saputo Inc. yesterday announced that it has signed an agreement to acquire Fairmount Cheese Holdings Inc., the parent company of DCI Cheese Co. Inc.

The purchase price of $270.5 million on a debt-free basis will be paid in cash from liquidity and/or by drawing on available lines of credit, and the transaction is subject to usual conditions including regulatory approval.

Saputo officials say the acquisition will complement the activities of Saputo’s U.S. Dairy Products division and increase its presence in the U.S. specialty cheese category. Sandy Vassiadis, Saputo director of corporate communications, says the company will not comment on further details of the acquisition until it is finalized, which could take five to six weeks. Saputo expects to close the transaction in March.

Fairmount Cheese Holdings, headquartered in Deerfield, Ill., was founded in 2003 by the Chicago-based private equity firm GTCR to acquire and consolidate companies in the high-growth, highly frag-mented specialty cheese industry. The initial platform acquisition for Fairmount was DCI in 2005. Between 2006-2007, Fairmount completed four other principal acquisitions in the specialty cheese and refrigerated foods segments. In addition to its Illinois headquarters, Fairmount has facilities in Wisconsin, New Jersey and California. It sells more than 160 million pounds and 100 types of cheese annually.

“I’d like to thank GTCR for their unwavering support in helping Fairmount become an industry-leading company. We look forward to working with Saputo to continue building on the legacy of our industry-recognized success,” says Michael Mulhern, CEO, Fairmount.

“We are very excited to become part of the Saputo team. Saputo is a high performance organization with significant manufacturing and operational resources which will enhance our ability to better serve customers,” Mulhern says.

“We are very thankful for the efforts of Michael Mulhern, Tim Omer and the rest of the management team as they have successfully built the company,” says Dave Donnini, principal, GTCR. “We have enjoyed an outstanding partnership with Fairmount and DCI, and its new relationship with Saputo represents an exciting next chapter in the company’s story.”

Volume 31 February 18, 2011 Number 4

WASHINGTON — The 17-member Dairy Industry Advi-sory Committee (DIAC) held its second-to-last meeting last Friday and plans to hold a final vote on its package of recom-mendations early next month.

According to Andrew No-vakovic, a professor of agricul-tural economics at Cornell Uni-versity and DIAC chair, the next meeting will be held March 3 via conference call, and he hopes it will be a simple approval of the recommendations to be submitted to U.S. Agriculture

DIAC to vote on final package of recommendations March 3

Secretary Tom Vilsack.Vilsack in late 2009 estab-

lished the DIAC to advise him on policy issues impacting the dairy industry as it works to address concerns on milk price volatility and dairy farmer profitability. The committee has met several times over the past year, first educating each other on issues facing the dairy industry and then drafting recommendations for changes moving forward.

Now the committee is final-izing 23 recommendations for Vilsack, which include sugges-tions for current programs, which would not require con-gressional action, as well as alternative actions that would require new legislation or regulation.

In its report, the commit-tee notes that existing federal programs and legislation had a limited impact on mitigating the massive impact of recent market events.

“Some laws provide no flexibility to the Secretary of Agriculture, while others allow some or even considerable dis-cretion,” the report says.

DIAC notes that when a proposed action has or is likely to have an impact on government expenditures, even

programs that offer discretion to the secretary cannot be used without approval of the Office of Management and Budget. Meanwhile, federal milk mar-keting orders (FMMOs) are designed for longer-term regu-lation of markets and are not readily amenable to mitigating shorter-term price events.

“Considering existing pro-grams alone, if the Secretary can identify funding sources, he can use the Dairy Product Price Support Program (DPPSP) and one or more food assistance pro-grams to stimulate demand and lift prices,” the report says.

The committee notes that allocating part of the U.S. government’s budget to dairy programs necessarily involves trade-offs with other programs. The committee suggests that using objective measures of sector hardship can reduce political pressures in the al-location process.

“The committee recom-mends that the Secretary imple-ment trigger levels based on the difference between average milk prices and a new measure of feed costs,” the report says. “The Secretary can then objectively determine when dairy farmers face extreme hardship by ex-amining whether the difference

between revenues and costs fall below specific trigger levels.”

The committee notes that extreme hardship would jus-tify shifting governmental re-sources from other uses, adding that within this framework, the first trigger would indicate use of a food assistance program to increase demand for dairy products. At the second trigger, the DPPSP purchase prices may be raised.

The DIAC also recommends that the Secretary review existing program administra-tion to examine its impact on exacerbating price volatility or delaying the government’s response to dairy farmers’ economic distress.

For example, there are some delays in using the DPPSP because of extra grading and other requirements and slower payment than is typical with commercial accounts, the committee notes, adding that testimony before the committee indicated that, despite signifi-cant improvements in the order amendment process, the FMMO program is difficult to change and still could be improved.

Further, the FMMO milk pricing formulas may be trans-ferring volatility in narrow

USDA releases annual report on ag projections

Turn to DIAC, page 14 D

Turn to BUDGET, page 11 D

WASHINGTON — USDA this week released new 10-year agricultural projections in an annual report, “USDA Agricultural Projections to 2020”.

The report provides pro-jections for the agricultural sector through 2020. Projec-tions cover agricultural com-modities, agricultural trade and aggregate indicators of the sector, such as farm

Turn to REPORT, page 16 DTurn to SAPUTO, page 16 D

✦ Guest column: ‘Second half price rally came early — very early.’ For details, see page 4.

✦ New production, aging facility to open in Vermont. For details, see page 5.

✦ Report on Doha urges resolution by end of 2011. For details, see page 6.

✦ Retail WATCH Exclusive: ‘Quality and convenience are an award-winning combo at BelGioioso.’ For details, see page 7.

INSIDE

Reprinted with permission from the Feb. 18, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Feb. 18, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the Feb. 18, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

MARKET INDICATORS

2 CHEESE MARKET NEWS® — February 18, 2011

DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions.

STAFF SUBSCRIPTION INFORMATIONCheese Market News®, Publ icat ion #0598-030,

(ISSN 0891-1509), is published weekly by Quarne Publishing

LLC, 4692 Signature Drive, Middleton, WI 53562; Phone

608/831-6002; FAX 608/831-1004. Periodicals postage

paid at Madison, WI. Circulation records are maintained by

Quarne Publishing LLC, 4692 Signature Drive, Middleton, WI

53562. POSTMASTER: Send address changes to Cheese Market News®, Subscriber Services, P. O. Box 628254, Middleton, WI 53562; Form 3579 requested; or call direct at 608/831-6002. All rights reserved under the United States

International and Pan-American Copyright Conventions.

No part of this publication may be reproduced, stored in a

retrieval system or transmitted in any form or by any means,

mechanical, photocopying, electronic recording or otherwise,

without the prior written permission of Quarne Publishing LLC.

Opinions expressed in articles are those of the authors and

do not necessarily reflect those of Quarne Publishing LLC dba Cheese Market News®. Cheese Market News® does not

endorse the products of any advertiser and does not assume

and hereby disclaims any liability to any person for any loss

or damage caused by errors or omissions in the material

contained herein, regardless of whether such errors result

from negligence, accident or any other cause whatsoever.

Copyright 2011 by Quarne Publishing LLC.

Subscriptions: $135 for U.S., second-class delivery; $190

for U.S. first-class delivery including Canada and $330 Inter-national rate to all others. Printed in U.S.A.

Susan Quarne, Publisher

(PH 608/831-6002; FAX 608/831-1004)e-mail: [email protected]

Kate Sander, Editorial Director

(PH 509/962-4026; FAX 509/962-4027)e-mail: [email protected]

Alyssa Sowerwine, Senior Editor

(PH 608/288-9090; FAX 608/288-9093) e-mail: [email protected]

Rena Archwamety, News/Web Editor


Johanna Nelson, Features Editor


REGULAR CONTRIBUTORSJoseph O’Donnell, John Umhoefer, Downes-O'Neill LLC, International Dairy Foods Association, National Milk Producers Federation, U.S. Dairy Export Council

SUBSCRIPTIONS & BUSINESS STAFFSubscription/advertising rates available upon requestContact: Susan Quarne - PublisherP.O. Box 628254, Middleton, WI 53562PHONE 608/831-6002 • FAX 608/831-1004

WEBSITE: www.cheesemarketnews.com

Cheddar Cheese and Dairy Product Prices

Cheese 40-lb. Blocks:

*/Revised. 1/Prices weighted by volumes reported. 2/Sales as reported by participating manufacturers. Reported in pounds. More information is available by calling NASS at 202-690-2424.

1/22/11 2/5/11

Average price1

Minn./Wis. Other states U.S.Sales volume2

Minn./Wis. Other states U.S.

Cheese 500-lb. Barrels:Average price1

Minn./Wis. Other states U.S.Adj. price to 38% moisture Minn./Wis. Other states U.S.Sales volume2

Minn./Wis. Other states U.S.Moisture content Minn./Wis. Other states U.S.

1/29/11 2/12/11

$1.4976$1.3849$1.3949

969,7979,933,225

10,903,022

$1.5113$1.4742$1.4908

$1.4429$1.3985$1.4182

4,142,6595,139,7849,282,443

35.06%34.64%34.83%

$1.99544,629,057

$1.260519,143,078

$.3953*11,277,883

$1.5342$1.4524$1.4580

695,3799,462,937

10,158,316

$1.5685$1.5115$1.5383

$1.4996$1.4367$1.4662

4,384,7504,921,8149,306,564

35.15%34.77%34.95%

$2.06742,461,028

$1.285924,643,150

$.399610,615,492

$1.6559$1.5659$1.5719

698,3219,892,940

10,591,261

$1.6992$1.6216$1.6639

$1.6200$1.5317$1.5796

4,870,0544,059,1568,929,210

34.97%34.36%34.69%

$2.07853,843,089

*$1.3320*17,218,051

*$.4086*9,367,662

Butter:Average price1 U.S.Sales volume2 U.S.

Nonfat Dry Milk:Average price1 U.S.Sales volume2 U.S.

Dry Whey:Average price1 U.S.Sales volume2 U.S.

For the week ended:

$1.7646$1.6444$1.6518

570,3148,683,1649,253,478

$1.7993$1.7678$1.7840

$1.7223$1.6722$1.6979

4,858,0394,579,6809,437,719

35.23%34.46%34.86%

$2.08623,165,702

$1.361417,310,034

$.420110,070,396

CLASS III PRICE(Dollars per hundredweight, 3.5% butterfat test)

YEAR2005200620072008200920102011

JAN 14.1413.3913.5619.3210.7814.5013.48

FEB 14.7012.2014.18 17.03 9.31 14.28

MAR14.0811.1115.0918.0010.4412.78

APR14.6110.9316.0916.7610.7812.92

MAY13.7710.8317.6018.18 9.8413.38

JUN13.9211.2920.1720.25 9.9713.62

JUL14.3510.9221.3818.24 9.9713.74

AUG13.6011.0619.8317.3211.2015.18

SEP14.3012.2920.0716.2812.1116.26

OCT14.3512.3218.7017.0612.8216.94

NOV13.3512.8419.2215.5114.0815.44

DEC13.3713.4720.6015.2814.9813.83

(These data, which includes government stocks and is reported in thousands of pounds, are based on reports from a limited sample of cold storage centers across the country. This chart is designed to help the dairy industry see the trends in cold storage between the release of the National Agricultural Statistics Service’s monthly cold storage reports.)

ButterCheese

6,845129,196

+2,069+2,577

10,108139,566

+2,339+2,087

-3,263-10,370

+52 +2

Weekly Cold Storage Holdings February 14, 2011On hand Week Change since Feb. 1 Last YearMonday Change Pounds Percent Pounds Change

Percent change versus

*Source: U.S. Department of Commerce. For index, prices during 1982-84 = 100.

Cheese & related productsDairy & related productsAll Food

2 years -5.3 -3.5+1.5

1 year +1.7+1.7+1.8

6 mo.+0.8+1.7 +1.7

January 2011206.103202.349222.912

1 mo. -0.6+0.1+0.9

RETAIL PRICES (Consumer Price Index*) Total Contracts Traded/Open Interest Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.

FEB11MAR11APR11MAY11JUN11JUL11AUG11SEP11OCT11NOV11DEC11

10/2,181

43.0052.7558.0058.2558.5058.5055.7553.5049.3048.2547.70

492306320249175107105106114106101

DRY WHEY FUTURES for the week ended February 17, 2011(Listings for each day by month, settling price and open interest)

42.5052.7557.7558.2558.5058.5055.7553.5049.3048.0047.03

481302317252174106105106114107102

58/2,166

42.5052.7557.9058.5058.5058.5055.7553.5049.0048.0047.03

481299317255174107105106114107102

13/2,167

Fri., Feb. 11 Mon., Feb. 14 Tues., Feb. 15 Wed., Feb. 16 Thurs., Feb. 17

43.0053.0358.0058.7559.8358.6555.7553.5049.3048.3847.70

489306316249175107105106114106101

135/2,174

42.7553.0058.0059.5360.0058.6556.0353.5049.3048.5047.75

48931229122817210099

10110810395

42/2,098

Total Contracts Traded/Open Interest Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.


61/1,930

1.7361.8851.8201.7801.7411.7091.7091.7201.7071.6801.670

371303219142138939291

144167170

CHEESE FUTURES for the week ended February 17, 2011(Listings for each day by month, settling price and open interest)

1.7361.9001.8351.7821.7451.7301.7101.7201.7201.6801.680

371303219142138959291

144167170

15/1,932

1.7361.8991.8131.7821.7451.7301.7201.7301.7201.6801.680

371308220142138959292

145171175


1.7361.8571.8231.7801.7371.7091.7081.7101.7071.6701.671

371291219142138939291

144151150

55/1,882

1.7361.8601.7991.7651.6971.6801.6781.6901.6901.6701.669

371287217131138939291

144151150

141/1,865 35/1,949

Monday Tuesday Wednesday Thursday Friday

Chicago Mercantile Exchange

Feb. 14 Feb. 15 Feb. 16 Feb. 17 Feb. 18

Weekly average (Feb. 14-18): Barrels: $1.9065(+.0580); 40-lb. Blocks: $1.9435(+.0565).Weekly ave. one year ago (Feb. 16-19, 2010): Barrels: $1.4013; 40-lb. Blocks: $1.4413.

Cheese BarrelsPriceChange

Cheese 40-lb. blockPriceChange

Extra Grade NDMPriceChange

Grade A NDMPriceChange

Weekly average (Feb. 14-18): Extra Grade: $1.7825(+.0515); Grade A: $1.8115(+.0655).

Grade AA ButterPriceChange

Class II Cream (Major Northeast Cities): $2.3078(-.1702)–$2.6225(-.0655).Weekly average (Feb. 14-18): Grade AA: $2.0465(-.0515).

$1.9025+1/4

$1.9400+1/4

$2.0550-1

Sign up for our daily fax or e-mail service for just $104 a year. Call us at 608-288-9090.

$1.7850 +2

$1.8075+1

Cash prices for the week ended February 18, 2011

$1.9000NC

$1.9375+1/4

$1.7650NC

$1.7975+1/4

$2.0650-1 1/4

$1.9125+1

$1.9500+1

$2.0300-2 1/2

$1.7975 +1 1/4

$1.8275+2

$1.9000NC

$1.9350+2

$1.7650NC

$1.7950+1 3/4

$2.0775-1 1/4

$1.9175+1/2

$1.9550+1/2

$1.8000 +1/4

$1.8300+1/4

$2.0050-2 1/2

Reprinted with permission from the Feb. 18, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the Feb. 18, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

February 18, 2011 — CHEESE MARKET NEWS® 3

DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions.

For more information circle 1 on the FAST FAX form on page 16.

YOU CAN CUT YOUR HEDGING COSTS TRADE WITH GPC FOR $3.41 PER SIDE

Class III Milk Class IV Milk Whey Cheese Cash Settle Butter NFDM Options Trade Electronically $3.41 Side*

Call Free: 1-877-Gressel Southwestern Division: (602) [email protected]

BROKERS OF DAIRY FUTURES & OPTIONS SERVING AGRI-BUSINESS SINCE 1933

CHEESE FUTURESNOW TRADING.

MARKET INDICATORS

Dry Products February 18, 2011

DRY BUTTERMILK(FOB)Central & East: $1.3100(+1)-$1.4900.(FOB) West: $1.2800(+3)-$1.5400(+4); mostly $1.3400(+5 1/2)-$1.4000(+5).

EDIBLE LACTOSE(FOB)Central and West: $.3200-$.4600(+1/2); mostly $.3300-$.3900.

NONFAT DRY MILKCentral & East: low/medium heat $1.4200(+6 1/2)-$1.8500(+3); mostly $1.4500(+6)-$1.7500(+5). high heat $1.4500(+5)-$1.8500.West: low/medium heat $1.3000(+4)-$1.8500(+10); mostly $1.4000(+7)-$1.7400(+9). high heat $1.3600(+2)-$1.6200(+2).Calif. manufacturing plants: extra grade/grade A weighted ave. $1.3120(+.0174) based on 15,601,007 lbs. Sales to CCC: 0 lbs.

WHOLE MILK POWDER (National): $1.6500-$2.0400.

DRY WHEYCentral: nonhygroscopic $.3600(+1/2)-$.4300; mostly $.3700(+1)-$.4175(+1/4).West: nonhygroscopic $.3975(+1/4)-$.6700(+12); mostly $.4300(+1 1/2)-$.5025(+5 1/4).(FOB) Northeast: extra grade/grade A $.4025(+1/4)-$.4275(+1/4).

ANIMAL FEED (Central): Whey spray milk replacer $.2700-$.3800.

WHEY PROTEIN CONCENTRATE (34 percent): $1.0200(+1/2)-$1.4500(+11); mostly $1.0300-$1.1000(+3).

CASEIN: Rennet $4.1400-$4.4500; Acid $4.2800-$4.5000.

International Dairy Markets February 18, 2011

OceaniaButter: 82 percent butterfat $4,500-$5,100(-100). Cheddar Cheese: 39 percent maximum moisture $4,300-$4,500.Skim Milk Powder: 1.25 percent butterfat $3,600(+100)-$4,200(+100).Whole Milk Powder: 26 percent butterfat $4,000(+25)-$4,500(+300).* Source: Dairy Market News. Prices reported in U.S. dollars per metric ton, F.O.B. port. To convert to price per pound: divide price by 2,204.6 pounds.

Western and Eastern Europe Butter: 82 percent butterfat $5,250-$5,700(+200); 99 percent butterfat $5,950-$6,300.Skim Milk Powder: 1.25 percent butterfat $3,500(+50)-$4,300(+300).Whole Milk Powder: 26 percent butterfat $4,500-$5,000(+250).Sweet Whey Powder: Nonhygroscopic $1,250(+50)-$1,650(+250).

Advanced Prices and Pricing Factors

Base Skim Milk Price for Class I1: Advanced Class III Skim Milk Pricing Factor: Advanced Class IV Skim Milk Pricing Factor: Advanced Butterfat Pricing Factor2: Class II Skim Milk Price: Class II Nonfat Solids Price: Two-week Product Price Averages:

Butter: Nonfat Dry Milk: Cheese: Dry Whey:

Note: The Class I price equals the Class I skim milk price times 0.965 plus theClass I butterfat price times 3.5, rounded to the nearest cent.For information only: The Class I base price is $18.23.1/ Higher of advanced Class III or IV skim milk pricing factors. The Class I skim milk price equalsthis price plus applicable Class I differential.2/ The Class I butterfat price equals the price plus applicable Class I differential divided by 100. Data provided by USDA

March 2011$10.50/cwt.$8.12/cwt.$10.50/cwt.$2.3136/lb.$11.20/cwt.$1.2444/lb.

$2.0820/lb.$1.3467/lb.$1.6386/lb.$0.4146/lb.

Feb. 2011$9.57/cwt.$6.71/cwt.$9.57/cwt.$1.9003/lb.$10.27/cwt.$1.1411/lb.

$1.7407/lb.$1.2423/lb.$1.3757/lb.$0.3915/lb.

Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. #The total contracts traded for Class III milk includes electronically-traded contract volumes.*Total Contracts Traded/Open Interest reflect additional months not included in this chart.

Total Contracts Traded/Open Interest

Cash-Settled NDM

136.00158.50165.50170.00170.50167.50163.00152.00146.00139.00138.00

2902541881751531078261453838

17/1,431


Cash-Settled Butter



3864704373212301489478675153

75/2,335

207.50195.00193.28194.03194.03194.25192.98191.50193.00194.50187.75

136.00158.00168.00171.00170.50168.00163.75153.45147.25138.00138.00

2902541891751531088771464038

39/1,451

207.50195.50192.75194.50194.03194.25192.75191.75193.00194.25187.50

3865144423212341489784685361

106/2,408

136.00158.00168.00173.00171.50169.00164.00153.45147.25138.00138.00

2902541891801561138779514038

29/1,477

207.50195.50194.75196.00195.00195.50193.25192.75193.00193.00186.00

3865134403222351489784695369

33/2,416





FEB11MAR11APR11MAY11JUN11JUL11AUG11SEP11OCT11NOV11DEC11JAN12FEB12MAR12APR12MAY12JUN12

Class III Milk#*

16.9618.7718.6518.2317.8817.6017.4417.3317.0516.6216.6016.1316.0615.9715.9715.9015.93

5,0686,1145,4944,5653,6202,4682,3042,2872,1432,0211,955

14010693543927

1,453/38,562

16.9318.9418.7818.3317.9417.7317.5617.4317.2016.7516.6716.2016.1116.0416.0415.9015.93

5,0236,1535,5334,5643,6202,4852,3232,3102,1752,0491,979

15210993573927

1,419/38,755

16.9818.9118.5618.2317.8717.6517.5517.4417.2016.7216.6516.1716.0516.0016.0415.9015.93

4,9326,3045,8324,6413,6762,5352,3642,3552,1972,0691,990

15210993573927

2,851/39,436


Class IV Milk*

FEB11MAR11APR11MAY11JUN11JUL11AUG11

18.3519.8020.1020.5520.6020.3519.70

70213261263303246235

18.4919.8020.3520.9020.6520.3519.99

70209265267306247242

63/2,086

18.4919.9020.4521.0020.7520.6020.10

70212282286326268250

65/2,054

CME FUTURES for the week ended February 17, 2011


149/2,204

16.9618.7318.6718.3017.9217.6317.4717.3517.0516.6716.6316.1516.1016.0016.0015.9015.93

5,0526,0125,3124,5103,5962,4662,2922,2582,1222,0171,951

139106

91543927

18.3519.8020.1020.5520.4020.2619.70

70212254258299239224

136.00158.50165.03169.00168.00166.50162.50152.00146.00139.00138.00

2902541851751511028359453838

207.50197.00194.00194.53194.53194.25192.00191.75193.00194.50187.98

3854554403222271329377675153

55/2,302

25/1,420

71/2,003

2,012/38,108

16.9918.7818.6318.2417.7217.2517.1517.0716.8216.4216.4316.1215.9515.9515.9515.9515.95

4,9445,9085,2634,4343,6452,4282,2582,1792,0681,9811,904

13710090513827

2,003/37,506

18.2919.6520.1020.2020.2020.1019.55

69210253257299238220

282/1,981

135.25157.00165.00166.50166.75165.00161.58151.00146.00139.00138.00

2902541851721511028152453838

37/1,408

207.50197.00195.00195.00194.53194.50192.00192.25193.00193.50188.00

3854544313182271288770675147

61/2,265

http://www.gresselproduce.com



Dave Kurzawski is a senior broker with the Chicago-based Downes-O’Neill division of FCStone. He contributes this column exclu-sively for Cheese Market News®.

Perspective:Market Insight

Second half price rallycame early — very early

G U E S T C O L U M N I S T C M N E x c l u s i v e !

George Bernard Shaw was credited with saying, “If history repeats itself, and the unexpected always happens, how incapable must Man be of learning from experience.” A more fitting line could not have been written about dairy pricing so far in 2011; a shocking rally has coincided with the precise time of year when history was expected to repeat itself.

While cull cow numbers are up on U.S. dairy farms courtesy of soaring beef prices, we entered 2011 confident in our supplies of raw milk. Not only were pro-ducers pumping out healthy production increases of 2.5 to 3.0 percent during the latter half of 2010, they also have more heifers than they know what to do with. Incidentally, some of them will go to beef, too.

Not to be outdone, however, the sup-

ply of cheese in inventory has continued to grow by leaps and bounds, continu-ally flirting with the ominous “billion pounds” in storage since mid-2010. With cheese piling up and milk production humming along, cheese production defied the odds and continued to grow during the latter half of 2011 when we expected Class IV plants to steal milk from the Class III milk market. It didn’t happen.

On the demand side, dairy product exports climbed throughout the year with total solids exports some 40 percent higher than in 2009. With international prices running substantial premiums to U.S. prices throughout much of 2010, industry participants became somewhat complacent with the notion that poorer domestic demand — due in part to a generally weaker economy — would

more than offset the substantial mar-ginal increases in export demand.

That was the case for awhile. But the rubber hit the road here in early January with U.S. buyers trying to build butter and powder — and to a much lesser extent cheese — inventories found themselves pitted against the world bid-ding for product. Panic set in and dairy product prices rocketed higher.

So now that we’re here — and now that the first six weeks of 2011 feel more like six months to end users — what’s next?

Cheese — largely the aged variety — is freeing up more readily at these loftier levels. Although most analysts think there is much more buy interest at $2.00 or even perhaps higher for fresh product, the vigor that brought dairy product prices in general — and cheese in particular — to these unsea-sonable levels looked to be slowing in mid-February.

While it is clear we’ve filled some of the world’s need for cheese supply lately, history shows that even our most valiant efforts to be a mainstream, routine supplier of product falls short when prices get too high. There is a good deal of nuance to international buyer preferences and generally U.S. suppliers match their needs best when the price is right.

Private export deals, however, are still somewhat brisk and the Cooperatives Working Together (CWT) export program appears to be working overtime having announced yet another large multi-million pound sale at the time of this writing.

But it is mid-February and while it is somewhat alarming how “hand-to-mouth” many commercial users there are at this time, expect those buyers

to set down their phones for at least a short period of time to let the market retract should cheese prices falter from the $1.90-$2.00 price level.

The thought of a correction doesn’t come out of thin air. Butter is the com-modity that led the complex higher and then it sat quietly watching the rest of the dairy prices scramble to more or less “catch up.” With only a handful of trades during the past month, the Chicago Mercantile Exchange (CME) spot butter price is finally moving and it’s going down.

To be clear, the overall fundamentals of butter are not bearish as stocks-to-use ratios remain very tight and imports of butterfat are light at best. But buyers who are staring down a $2.00 price ahead of the U.S. spring flush appear calmed and ready to step back at this time.

If this development expands, the onus will be on nonfat dry milk prices to continue the march to $2.00 per pound and beyond to securely offset the potentially short-term butter price losses and keep milk flowing to Class IV production. Right now, CME nonfat dry milk prices are near $1.80 and the trade seems more concerned with waiting for National Agricultural Statistics Service prices to catch up to that level than pushing to $2.00.

Only time will tell as to the severity of the looming bull market for cheese. One thing is for sure: the dairy industry may be faced with more volatile price swings, thus price risk going forward in 2011. How will you manage it? CMN

The views expressed by CMN’s guest columnists are their own opinions and do not necessarily reflect those of Cheese Market News®.

NEWS/BUSINESS

WASHINGTON — January U.S. imports of cheese subject to licensing require-ments totaled 10.4 million pounds, up 33 percent from January 2010, according to data recently released by USDA’s Foreign Agricultural Service. (The figures re-leased by USDA are in kilograms; Cheese Market News has converted the data to pounds by multiplying by 2.2046.)

Cheese imports subject to licensing requirements in December totaled 20.0 million pounds, down 1 percent from December 2009. This brought total 2010 licensed cheese imports to 172.5 million pounds, a 15 percent decrease from the January-December 2009 licensed cheese imports.

January licensed imports of Swiss and Emmenthaler with eye formation totaled 3.7 million pounds, up 41 percent from January 2010 licensed imports in this category. Licensed Cheddar imports in January totaled 654,471 pounds, up 15 percent from January last year.

Imports of Edam and Gouda subject to licensing requirements totaled 550,101 pounds in January, up 131 percent from

Licensed cheese imports up 33 percent in January, reach 172.5 million pounds in 2010January 2010. Licensed imports of Italian-type cheeses in January totaled 624,779 pounds, up 2 percent from licensed im-ports in this category last January.

Licensed imports of Blue mold chees-es in January totaled 422,598 pounds, up 88 percent from January 2010.

Imports of processed Gruyere subject to licensing requirements in January totaled 193,881 pounds, down 9 percent from licensed imports of these cheeses last January.

Licensed imports of other cheese not-specifically-provided-for reached 4.2 million pounds in January, up 27 percent from January 2010. Licensed imports of other lowfat cheese not-specifically-provided-for totaled 27,117 pounds in January, up from zero in January 2010.

January licensed butter imports totaled 504,183 pounds in January, up 143 percent from a year earlier.

Licensed imports of butter substi-tutes in January totaled 26,689 pounds, down 92 percent from January 2010.

In December, butter imports sub-ject to licensing requirements totaled

684,296 pounds, down 73 percent from December 2009. January-December licensed butter imports totaled 7.2 million pounds, down 51 percent from 2009 licensed butter imports.

In January, total imports of high-tier cheese and other dairy products reached 1.5 million pounds, up 59

percent from January 2010. Italian-type cheeses led January high-

tier imports with 991,792 pounds, up from 113,195 pounds in January 2010.

January-December 2010, imports of high-tier cheese and other dairy products reached 24.4 million pounds, down 10 percent from the annual 2009 total. CMN

MADISON, Wis. — Gilman Cheese Corp. of Gilman, Wis., Sargento Foods Inc. of Plymouth, Wis., and Hydro-Thermal Corp. of Waukesha, Wis., have been nominated for the 2010 Wisconsin Manufacturer of the Year Awards.

They are among 53 Wisconsin companies nominated for this year’s awards. Gilman Cheese and Hydro-Ther-mal Corp. are competing in the small company size category for companies with one to 99 employees. Sargento is competing in the mega company category, for companies with 751 or more employees.

Gilman Cheese, Sargento, Hydro-Thermal among manufacturer of the year nominees

Celebrating its 23rd year, the awards program recognizes manufacturers of all sizes and industries for their con-tributions to Wisconsin.

The Wisconsin Manufacturer of the Year award winners are selected by an independent panel of judges and held in confidence until being revealed during a black-tie awards banquet at Milwaukee’s Pfister Hotel on Feb. 24.

The accounting and advisory firm of Baker Tilly, the law firm of Michael Best & Friedrich LLP and the business association Wisconsin Manufacturers and Commerce serve as sponsors. CMN




CUSTOM MACHINERY

As a premier designer and fabricator of machinery, Johnson Industries has provided a number of custom solutions for various industries to meet customer-specific application requirements. Our commitment to quality and service will exceed your expectations; and we are positioned to be your long-term partner for all of your cheesemaking needs. Innovation, durability and quality are found in every machine or system we deliver.

Solutions include: Robotics Extrusion Systems

Drums Brine Metering Systems Brine Systems Filling & Closing Systems Inspection Systems Curing Tunnels Ribbon Blending Systems And So Much More...

SERVICE INNOVATION DEDICATION

6391 Lake Road, Windsor, WI 53598

Your Global Cheese Making and Processing Equipment Resource

Johnson IndustriesInternational Inc.©

DEDICATED TO THE CHEESE & DAIRY INDUSTRIES FOR OVER FOUR DECADES!

Your answer to accurate dry salting.

NEWS/BUSINESS

WASHINGTON — The United States exported 877.9 million pounds of cheese, butterfat and dry ingredients in the fourth quarter of 2010, up 35 percent from the fourth quarter of 2009, accord-ing to the U.S. Dairy Export Council’s (USDEC) most recent dairy export summary based on trade data released Feb. 11 by USDA’s Foreign Agricultural Service. (The figures released by USDA and USDEC are in metric tons; Cheese Market News has converted the data to pounds by multiplying by 2,204.6.)

U.S. dairy suppliers posted record export volumes in 2010. On a total solids basis, U.S. dairy exports reached 3.04 bil-lion pounds last year, up 40 percent from 2009 and up 19 percent from 2008 volume,

Dairy exports reach record volume in 2010, according to USDEC’s dairy export summary USDEC says. Nearly all product catego-ries posted big increases in 2010.

“U.S. dairy suppliers resumed their growth path in 2010 after a sharp drop in 2009, yet this welcome result shouldn’t obscure the fact that this is part of an expected, long-term growth trend,” says Tom Suber, president, USDEC. “Dairy has become an integral part of the diet in large emerging markets like China, India and Southeast Asia as purchasing power has advanced to the point that they are able to pay for more products they now desire.”

Cheese exports in the fourth quarter totaled 103.6 million pounds, up 51 percent from the same period in 2009. December cheese exports totaled 44.1

million pounds, up 63 percent from the previous December, and full-year cheese exports reached 382.6 million pounds in 2010, up 60 percent from the previous year. Suber notes that the increase in cheese exports has pushed the United States past Australia as the world’s third-largest supplier, behind the Eu-ropean Union and New Zealand.

Milk powder exports in the fourth quarter totaled 276.4 million pounds, up 77 percent from the same quarter in 2009. Nonfat dry milk (NDM)/SMP exports were up 85 percent and whole milk powder (WMP) exports were up 10 percent for the fourth quarter. Full-year 2010 milk powder exports totaled 963.6 million pounds, up 23 percent from 2009.

Whey protein exports totaled 260.8 million pounds in the fourth quarter, up 14 percent from 2009. Dry whey protein exports were up 10 percent, whey pro-tein concentrate (WPC) exports were up 20 percent and whey protein isolate (WPI) exports were up 19 percent in the fourth quarter. Whey protein exports in

2010 reached 557.4 million pounds, up 23 percent from a year earlier.

Fourth quarter lactose exports totaled 193.4 million pounds, up 41 percent from a year earlier. Lactose exports in 2010 totaled 605.2 million pounds, up 25 percent from 2009.

Butterfat exports during the fourth quarter totaled 29.3 million pounds, down 8 percent from a year earlier. Full-year butterfat exports totaled 123.9 million pounds in 2010, up 99 percent from 2009.

USDEC says the total value of U.S. dairy exports during the fourth quarter was $992.4 million pounds, up 49 per-cent from the previous year. December’s dairy exports totaled $347.1 million, up 58 percent from the last December, and 2010 dairy exports totaled $3.71 billion, up 63 percent from the 2009 value.

Mexico was the largest market for U.S. dairy exports in 2010, taking in a value of $829 million for the year. South-east Asia imported $693 million worth of products and Canada imported $436 mil-lion worth of U.S. dairy products. CMN

AUCKLAND, New Zealand — Prices were up for skim milk powder (SMP) and whole milk powder (WMP) and the trade-weighted index increased 3.9 percent following the latest auc-tion Tuesday on globalDairyTrade, Fonterra’s internet-based sales platform.

The average price achieved across all contracts and contract periods for SMP was up 0.7 percent from the Feb. 1 auction to US$3,898 per metric ton FAS ($1.7681 per pound) following Tuesday’s event, while the average

Skim milk powder, whole milk powder up following latest auction on globalDairyTrade

price achieved across all contracts and contract periods was up 7.9 percent for WMP to US$4,320 per metric ton FAS ($1.95951 per pound).

However, the average price achieved across all contracts and contract peri-ods for anhydrous milkfat was down 2.4 percent from the Feb. 1 auction to US$6,324 per metric ton FAS ($2.8685 per pound). No buttermilk powder was offered during Tuesday’s event.

The next trading event will be held March 1. For more information, visit www.globalDairyTrade.info. CMN

MADISON, Wis. — Mead & Hunt, which specializes in planning, de-sign, engineering and architecture for a variety of industries including food and industrial, has announced the launch of its redesigned web-site.

The new site is designed to provide visitors with up-to-date information in

Mead & Hunt announces website launchan easy-to-use format.

Features include an online blog and easy-to-navigate links that provide additional information about markets and services, profile and people, careers and benefits, and news and insights, among others.

For additional information, visit www.meadhunt.com. CMN

WASHINGTON — As part of an initiative to improve food safety practices in retail and foodservice establishments, FDA has developed a poster and flier designed to raise awareness of sanitation concerns with commercial deli slicers commonly used to slice cheeses, meats and produce in food stores, delis, restaurants and other foodservice establishments.

The poster, targeted to operators of food establishments and their front-line food employees, is suitable for posting near deli slicers and explains the im-portance of proper slicer maintenance. It offers tips to ensure deli slicers are being properly cleaned and maintained, as well as information about when slic-ers should be removed from service until

FDA develops tools to raise awareness of sanitation concerns with commercial deli

repaired or replaced.FDA notes that if deli slicers are

not properly cleaned and sanitized on a regular basis, food soils and disease-causing microorganisms can accumu-late on slicer surfaces and result in food contamination.

“Routine professional maintenance of all deli slicers is critical to preventing these machines from becoming a signifi-cant food safety hazard,” FDA says.

The new poster and flier are avail-able for download at no charge at www.fda.gov/downloads/Food/ResourcesFo-rYou/UCM222258.pdf.

F o r m o r e i n f o r m a t i o n , e-mail Shirley Turpin at [email protected]. CMN

SOUTH WOODSTOCK, Vt. — The Vermont Farmstead Cheese Co. (VFC) recently signed a memoran-dum of understanding for a cheese production and aging facility in Windsor, Vt.

VFC says the Windsor facility will help handle increasing demands for production of its line of Vermont artisan cheeses as well as aging and distribu-tion functions for all VFC cheeses. The facility also will offer economical aging, custom packaging and distribution ser-vices to all Vermont cheesemakers and is being designed with future expansion in mind, VFC adds.

The facility will house 600 square feet of retail space, and VFC is making this space available to all Vermont ar-

Vermont Farmstead Cheese to open new cheese production and aging facility

tisan cheesemakers. The retail facility also will act as a Vermont cheese infor-mation center, highlighting, promoting and encouraging the growing Vermont cheese industry and its individual partners.

The retail space will include a view-ing wall open to the cheese production operation. Talks are underway with various establishments in the area to jointly offer multi-day cheesemaking classes aimed at the general public.

The aging and production facili-ties are expected to be operational by mid-summer, and the retail and infor-mation center are set to be opened shortly thereafter. Future plans in-clude cooperation on renewable en-ergy and waste programs. CMN

http://www.johnsonindint.com




NEWS/BUSINESS

New report on Doha talks released at World Economic Forum urges resolution by end of 2011DAVOS, Switzerland — A new report recently released at the World Economic Forum (WEF) last month notes that if the Doha Round of World Trade Talks is not concluded in 2011, it probably never will be.

The United Kingdom, Germany, Indonesia and Turkey last year com-missioned the report on the future of Doha, and former World Trade Organization (WTO) Director Peter Sutherland along with Goldman Sachs and Columbia University economist Jagdish Bhagwati released a 20-page summary to the WEF.

The report notes that the Doha Round of global trade talks must be concluded by the end of this year if the multilateral, rule-based system of free trade is not to be put at risk.

“If a deal is not reached by then, it could be further delayed by U.S. elector-al cycles,” report authors say. “Failure to conclude is a failure of a multilateral system that has worked well.”

The report also notes that devel-oped and developing countries will benefit from a successful round, which is expected to remove more tariffs and provide significant market access. In addition, estimates of additional trade

generated by a deal range from US$350 billion to US$500 billion, and 49 of the world’s lowest-income countries will have duty-free access to Organization for Economic Cooperation and Develop-ment (OECD) markets.

In the report, authors outline four basic arguments for completing the Doha Round:

• Provide an insurance policy against future protectionism, particularly in a period of economic downturn in many developed countries;

• Reform farm trade by removing subsidies on agriculture products in Europe and the United States;

• Cut tariffs and open up new mar-kets; and

• Reinforce the WTO system and help integrate many developing countries into the multilateral trading system, as well as strengthen the WTO’s legiti-macy in resolving trade disputes among countries.

The Doha Round was launched in a spirit of global cooperation follow-ing the Sept. 11, 2001, attacks in the United States. Since that time, talks have been stalled mainly over the role of developing countries to the point of breaking down in 2008. The report

notes that things have changed over the last decade and for the deal to work, emerging countries must make some concessions.

The authors note that even if a per-fect system cannot be created, leaders should not miss the chance to create an “unprecedentedly good” one.

The authors say that for developed countries, especially those in Europe going through a recession, a Doha agreement could provide a stimulus to their economy at no cost.

In addition, to accelerate move-ment toward an agreement, WTO members should build on what is already on the table, where some 80 percent of items have been agreed to, they add. Members also should be prepared to give and take and be

willing to spend political capital and energy to persuade their constituents back home.

Following the report’s release, U.S. Trade Representative Ron Kirk stressed the need for key emerging countries such as Brazil, China and India to agree to open their markets further so that the outcome of the talks will make a real difference for developing and developed countries alike.

“The United States remains commit-ted to a successful, ambitious conclu-sion of the round, but if the talks are to be completed in 2011, real give-and-take negotiations must begin immediately,” Kirk says.

He adds that the United States will engage on difficult issues but it is essen-tial for all partners to do the same. CMN

FDA announces availability of CPG on enforcement policies for pathogensWASHINGTON — FDA in the Dec. 23 Federal Register announced the availability of a Compliance Policy Guide (CPG) to provide guidance for FDA staff on its enforcement policies for pathogens and other indicators of inadequate pasteurization or post-pasteurization contamination of dairy products.

In the Dec. 1, 2009, Federal Regis-ter, FDA made available a draft CPG and gave interested parties an oppor-tunity to submit comments by Feb. 1, 2010. FDA notes it reviewed and evalu-ated these comments and has modified the CPG where appropriate.

The CPG provides guidance for FDA staff regarding pathogens and indica-tors of inadequate pasteurization or post-pasteurization of dairy products. The CPG outlines regulatory enforce-ment policies for FDA staff to use to initiate legal action recommendations

based on analytical determinations that a dairy product contains a patho-genic microorganism; toxins produced by Clostridium botulinum, entero-toxigenic Staphylococcus or Bacillus cereus; Staphylococcus aureus; Bacil-lus cereus; nontoxigenic Escherichia coli; or alkaline phosphatase. The CPG also contains information that may be useful to the regulated industry and to the public.

Written requests for single copies of the CPG should be sent to the Divi-sion of Compliance Policy, Office of Enforcement, FDA, 5600 Fishers lane, Rockville, MD 20857. Requests also can be faxed to 240-632-6861.

Electronic or written comment on the CPG can be submitted at any time. For more information, contact Monica Metz at FDA’s Cen-ter for Food Safety and Applied Nutrition at 301-436-2041. CMN

Magnetic Products marks 30th anniversaryHIGHLAND, Mich. — Magnetic Prod-ucts Inc. (MPI), a worldwide provider of magnetic and non-magnetic material handling solutions, will celebrate its 30th anniversary this year.

Since starting operations Feb. 7, 1981, MPI has delivered a full comple-ment of services centered on the de-velopment, engineering and building of magnetic and other forms of mate-rial handling equipment used in the cheese, dairy and many other industries worldwide.

“Reaching this milestone in our company’s history is proof that our busi-ness model works,” says Keith Rhodes, MPI founder and president.

Rhodes says MPI will continue to listen to its customers and provide the solutions they require, seeking new technologies and product lines that will help improve processes and increase productivity.

MPI’s commitment to customer education on the practical use and ap-plication of magnets and metal detec-tion technologies, and advancement of inventive magnetic and other types of material handling equipment, is accom-plished through significant investments in research and development, as well as proactive product training, company officials say. MPI interacts closely with its customers and expands its offer-ings to meet the changes of a dynamic marketplace.

“This is also a time to focus on our employees whose efforts make the company what it is today,” Rhodes adds. “The dedication and teamwork of the MPI staff have led to the achievements of the past 30 years. I have never been more optimistic about MPI than I am today.”

For more information about MPI, visit www.mpimagnet.com. CMN

http://www.cheesemarketnews.com


CHEESE MARKET NEWS®

Retail WATCHN E W S & M A R K E T I N G I D E A S T O H E L P S E L L M O R E C H E E S E


Also in Retail WATCH: DCI launches ‘Royal Treatment’ … Page 8 Cooks Corner will feature Wisconsin champions … Page 10

Quality and convenience are an award-winning combo at BelGioioso

Turn to BELGIOIOSO, page 9 D

By Kate Sander

DENMARK, Wis. — Italian-style cheeses are the most-produced cheese category in the United States, and it’s companies like BelGioioso Cheese Inc., based just outside of Green Bay, Wis., that keep the category growing and innovating.

BelGioioso Cheese isn’t the largest Italian cheese-producer in the country — as a family-owned and operated company, it doesn’t disclose production figures but the company also isn’t a mass Mozzarella producer. BelGioioso is, however, one of the more well-known Italian cheese producers in artisan circles, combining multiple cheese plants and authentic

FRESH MOZZARELLA, FRESH PACKAGING — BelGioioso Cheese now offers consumers Fresh Mozzarella packaged not only in water but also in thermoform packaging. In addition to being more convenient, the thermoform packs have a longer shelf life.

craftsmanship to produce award-win-ning, specialty cheese available both nationally and internationally.

Followers of cheese plant expan-sions in Wisconsin regularly hear the name BelGioioso: The company began making cheese at its fifth cheese plant in December 2007 and this past fall opened a new office, distribution and converting facility in Ledgeview, Wis. The new 200,000-square-foot facility features a larger, more efficient layout and also helps the company keep up with growing converting, aging and storing needs, according to Gaetano Auricchio, vice president of sales.

The company’s network of facilities started out as just one cheese plant in 1979, when fourth-generation cheese-maker Errico Auricchio, the company founder and president, moved his fam-

BelGioioso Cheese has introduced its pearl-size Fresh Mozzarella balls as well as its ciliegine (cherry-size) Fresh Mozzarella in 8-ounce thermoform packages. In addition to the advantage of convenience, the thermoform packs have a longer shelf life — 60 days from production vs. 37 days for water-packed, according to Wall.

In the past year, the company also has introduced new exact-weight sizes of its Crescenza-Stracchino, a fresh, rindless cow’s milk cheese that is soft and creamy; Peperoncino, its trade-marked blend of Asiago flavor with the hot taste of red peppers; and Creamy Gorgonzola, its blue-green veined cheese with a full, earthy flavor and creamy texture. The company’s freshly shaved Caesar Blend, which combines Asiago, Parmesan and Romano chees-es, also is available in an exact-weight retail cup.

Another new introduction is the company’s Burrata in 4-ounce balls. Fresh Mozzarella filled with shreds of Mozzarella soaked in cream, Burrata is silky on the outside and creamy on the inside and boasts a richly sweet, milky flavor. Originally only available in 8-ounce balls, the company now offers it in a package of two 4-ounce balls, perfect for sharing with a friend.

A common theme one sees through-out BelGioioso Cheese’s products is a focus on convenience and quality. The company believes in making its specialty cheeses easy to use and not intimidating for consumers who might not be familiar with them.

“You can tastethe difference.

Our cheesemakershave extensive training, we have quality checks, strong customer service. Our customers are happy with our responsivenessto their needs. It’s the

sum of many smalldetails that makes us

who we are.”

Gaetano AuricchioBELGIOIOSO CHEESE

“We strategicallylocate our plants

within 30 miles of our local farmers so

we can gather thefreshest milk daily.”

Francis WallBELGIOIOSO CHEESE

ily from Italy to America to start his own cheese company. Now up to five cheese plants, how long it will be before BelGioioso Cheese undertakes its next expansion is hard to say — “We’re always looking to make capacity improvements,” says Gaetano Auricchio, Errico’s son. When the company expands again, it might be safe to assume it will be in northeastern Wisconsin, where all of the company’s cheesemaking and handling facilities currently are.

“We strategically locate our plants within 30 miles of our local farmers so we can gather the freshest milk daily,” says Francis Wall, vice president of marketing, who notes BelGioioso uses all rbST-free, Wisconsin milk for its products.

BelGioioso Cheese doesn’t cut cor-ners, and operating five different plants allows each to specialize in specific cheeses that are produced there daily by the same cheesemakers, says Errico Auricchio. It is this focus on quality and authenticity that helps set the company’s cheeses apart, he says.

“You can taste the difference,” Gaetano Auricchio adds. “Our chee-semakers have extensive training, we have quality checks, strong customer service. Our customers are happy with our responsiveness to their needs. It’s the sum of many small details that makes us who we are.”

Attesting to the cheese’s quality, the company has won numerous awards in the past year including a silver for its American Grana and bronzes for its Asiago and Fresh Mozzarella at the World Cheese Awards in London.

At the American Cheese Society’s competition last August the company’s Sharp Provolone Mandarino placed first, its Mild Provolone, Burrata and Mascar-pone placed second, and its CreamyGorg and Asiago placed third.

And as if those weren’t enough, at the World Championship Cheese Con-test held in Wisconsin last spring, the company received a best in class for its Parmesan and a best in class for its Mas-carpone as well as third place awards for its Aged Provolone and CreamyGorg.

Another part of what makes BelGio-ioso Cheese stand out is innovation. The company continues to create innovative and convenient products for both retail and foodservice, areas in which it splits its sales. Fresh Mozzarella is one of the

few years the company has offered a handful of sizes in thermoform packag-ing, convenient because the packaging lacks the water that Fresh Mozzarella has traditionally been packaged in. Now the company is expanding that convenience even further to consumers.

Photo courtesey of BelGioioso Cheese

company’s best sellers, but the company executives see far more potential for this cheese.

One way the company has made the cheese more user-friendly is through the introduction of Fresh Mozzarella in thermoform packaging. For the past


8 CHEESE MARKET NEWS® — February 18, 2011 R E T A I L R O U N D - U P


With over 150 years of combined experience in the cheese and dairy industries, we can accommodate all of our customer’s needs. • Specializing in Both Substitutes and Blends of Real Cheese• Can Efficiently Ship Most Orders Within 24 Hours• Custom Formulations to “Solve Your Problems”• Lower Cost and Longer Shelf Life• On-Site Laboratory to Ensure a Comprehensive Q/A Program• All Manufacturing and Further Processing Under One Roof

Small to large batch production offering consistent quality and quick turnaround times with a support network you can trust to run your business more profitably!

Call Michelle Myrter or Lyn Moore today to discuss your needs and place your order.

)DPLO\�RZQHG�DQG�RSHUDWHG�VR�ZH�FDQ�WUHDW�HYHU\��FXVWRPHU�OLNH�IDPLO\�

GRATING • SHREDDING • DICING • DRYING

&$67/(&+((6(��,1&�2850 Perry Highway Slippery Rock, PA 16057(800) 252-4373 | (724) 368-3022 FAX (724) 368-9456email: [email protected]: www.castlecheeseinc.com

Offering:• 20-lb. Blocks• 5-lb. Loaves• Wedges & Deli Cups

RICHFIELD, Wis. — DCI Cheese Co. recently launched “Give Yourself the Royal Treatment,” a promotion featur-ing Joan of Arc, the company’s imported French cheese brand. One grand prize winner will receive free maid service for one year, a $2,000 value.

Throughout the February/March promotion, contest entry forms and a Joan of Arc recipe will be available in the specialty cheese section of participating retailers and online at www.dcicheeseco.com/JoanofArc. In addition, consumers with Smart phones can connect directly to the promotion’s website for recipes, wine pairings and a coupon via the pro-motional materials’ Smart phone tag.

Joan of Arc is the oldest trademarked brand of French Brie available in the

TILLAMOOK, Ore. — Tillamook County Creamery Association recently an-nounced it is bringing new flavor to the deli department with its new Creamery Collection, six varieties of pre-sliced cheeses, as well as the new Tillamook 4-pound Baby Swiss loaf.

Conveniently sliced for sandwiches and snack platters, Tillamook’s Creamery Collection is exclusive to the grocery ser-vice deli and is available in six varieties including Hot Habanero Jack, Garlic Chili Pepper Cheddar, Garlic White Cheddar, Smoked Black Pepper White Cheddar, Smoked Swiss and Medium Cheddar.

The collection is available in 7-ounce shingle packs and features an all-new premium packaging design resembling classic deli parchment wrapping, the company says.

“With more families cooking at home but looking for restaurant quality flavor,

Tillamook introduces Creamery Collection pre-sliced cheeses, 4-pound Baby Swiss

the new Creamery Collection helps meet the demand for premium taste that’s both convenient and affordable,” says Jay Allison, Tillamook vice president of sales and marketing. “With gourmet sandwiches a top trend for 2011, Tilla-mook fans can now add layers of flavor to any panini or hoagie with our new deli case cheeses.”

In addition, Tillamook is introducing the 4-pound Baby Swiss loaf, which the company notes is ideal for slicing for sandwiches, cubing for party trays and melting for fondue.

The company notes that while Tilla-mook’s traditional Swiss cheese is aged more than 60 days, the new Baby Swiss loaf is aged 30 days for a slightly sweeter flavor with nut and butter overtones and a creamy texture.

For more information, v is -it www.Tillamook.com. CMN

DCI launches ‘Royal Treatment’ promotionUnited States and features a savory, buttery, rich and earthy taste that works well in hors d’oeuvres, appetizers and as a dessert. Joan of Arc also offers other French cheeses such as Camembert, Coulommiers, Goat Brie, soft Chevre and Roquefort.

“This promotion was created to make high-quality cheeses like Joan of Arc much more approachable to the average consumer,” says Katie Jury, marketing manager, DCI Cheese Co. “Brie is such a great cheese, but Americans tend to view it as a food meant for special occa-sions. ‘Give Yourself the Royal Treatment’ encourages consumers to throw that idea out the window.”

For more information, visit www.dcicheeseco.com. The promo-tion runs through March 31. CMN

CMAB consumer study shows consumer preferences for value-added fluid milk at retailSOUTH SAN FRANCISCO, Calif. — A recent consumer study commissioned by the California Milk Advisory Board (CMAB) shows that consumers gener-ally prefer the taste of fluid milk with enhanced nutrition and would change their shopping habits to buy it.

To gauge consumer appeal for milk with enhanced nutrition, Decision Analyst Inc. — an analytical marketing research company based in Arlington, Texas — conducted a national study to compare milk with enhanced nutrition against local milk produced to federal standards among 900 consumers in six markets — Atlanta, Boston, Chicago, Dallas, Denver and Seattle. Consumers blindly taste-tested both milk samples under identical test circumstances, including milk temperature.

The enhanced California fluid milk provided for the study meets higher standards for nutrients than current federal standards. An 8-ounce glass of California milk contains up to 33 percent more calcium, 25 percent more protein and 33 percent more potassium than the same glass of milk produced to meet current federal standards.

During the test, consumers ranked both milks on overall preference, flavor, thickness, color and texture. Each respondent sampled the milk type they normally drink, such as

whole milk, 2 percent, 1 percent or non-fat milk. Adults in the sample also were asked to rank the “higher nutri-tion” concept itself, including intent to purchase, willingness to switch stores to purchase and willingness to pay a premium price for nutritionally enhanced milk.

The study found that:• In terms of taste, consumers re-

ported a slight preference for the nutri-tionally enhanced milk over the federal standard milk overall (44 percent vs. 42 percent), with only 14 percent reporting no preference.

• In the 2 percent milk grade, the nutritionally enhanced milk was signifi-cantly preferred over the federal stan-dard milk (48 percent vs. 40 percent), with 12 percent citing no preference.

• Mean ratings (scale of 1-10) were slightly higher for the nutritionally enhanced milk on all ratings — such as flavor, color, thickness, texture and overall — although both milks ranked similarly.

• The overall concept of milk with enhanced nutrition highly appeals to consumers, with nearly half of respon-dents giving the concept a 9 or 10 on a 10-point scale. The concept’s appeal was greater for the lower-fat milks and received a more positive response among females.

• Purchase intent for the nutritionally enhanced milk was extremely high, with 78 percent of consumers indicating they either would “definitely buy” or “probably buy” it if available in their grocery store.

• Many consumers reported they would actually switch stores to find a milk that met an enhanced nutritional profile (aver-age 2.83 mean score on a scale of 1-5).

• Given a choice between a milk produced to federal standards and a nutritionally enhanced milk labeled as such at retail, 86 percent reported they

would choose the milk with the enhanced nutrition option.

“We’re constantly exploring new channels to bring consumers nutritional dairy products, and retailers play an enormous role in the overall process,” says Stan G. Andre, CMAB CEO. “The con-sumer study demonstrates not only that consumers in markets across the coun-try generally like milk with enhanced nutrition, but also would be inclined to buy it and change their shopping habits to do so, regardless of price.” CMN

MINNETONKA, Minn. — Crystal Farms has launched a new line of all-natural Cheddar cheeses made exclusively in Wisconsin.

The new line is available in a variety of flavors in both chunks and shreds including Wisconsin Sharp Cheddar, available in 8-ounce and 16-ounce chunks as well as 8-ounce, 12-ounce, 16-ounce and 32-ounce shreds (in 8-ounce, a regular or finely shredded option is available); Wisconsin Extra Sharp Cheddar, available in an 8-ounce

Crystal Farms offers Wisconsin Cheddar linechunk and an 8-ounce shred; Wisconsin White Sharp Cheddar, available in an 8-ounce chunk and an 8-ounce shred; and Wisconsin White Extra Sharp Cheddar, available in an 8-ounce chunk and an 8-ounce shred.

Shredded cheeses are packaged in a resealable bag that includes a recipe on the back of the package.

For more information, contact Jeff Thomas at 952-258-4095, e-mail: [email protected] or visit www.crystalfarms.com. CMN

http://www.castlecheeseinc.com


February 18, 2011 — CHEESE MARKET NEWS® 9 R E T A I L I N G P E R S P E C T I V E S

The company doesn’t have a chef on staff, but many family members, chee-semakers and employees experiment with the cheeses and collaborate on recipes, creating in essence a “family cookbook” from which the company draws when marketing its products and sharing recipes with consumer magazines which might feature the company’s cheese. Recipe cards, point-of-sale materials and demos — getting the cheese in people’s mouths — are important marketing tools for the company, Wall says.

The company also encourages display contests. Recently in Texas, BelGioioso cheeses were displayed at Central Market as part of a Super Bowl display contest. Wall sees all kinds of potential for displays to draw in cus-tomers, and he quickly can list several different ideas off the top of his head for the spring season such as March Madness and Easter displays.

Chefs also are an important part of getting the word out about the company’s cheeses, Gaetano Auric-chio says. For example, the company wasn’t selling much of its Crescenza in the Green Bay area until a chef who is a friend of Gaetano Auricchio’s began featuring the creamy cheese on a sandwich at his deli. Now the sand-wich is a best seller on the menu, and BelGioioso is seeing more interest in the cheese at retail. In fact, Auricchio

says he predicts it’s the next “up and coming cheese.”

In the next few weeks, the company also is introducing crumbled Ricotta Salata, a whole milk Ricotta with added salt that is pressed into a form, then crumbled. The milky cheese, similar to Feta but with a more milky, nutty flavor, will be available in a 5-ounce retail cup. Currently the cheese is available in whole wheels and wedges for retail.

Looking to the future, the company executives aren’t inclined to predict a lot, other than to note they expect to see their cheese, currently sold nationwide and in Mexico and Canada, available in additional markets.

“We don’t focus on fads; we are committed to continuing to produce award-winning artisan cheeses that meet our customers’ needs,” Gaetano Auricchio says. CMN

BELGIOIOSOContinued from page 7


NEW INTRODUCTION — BelGioioso Cheese is about to introduce crumbled Ricotta Salata, a whole milk Ricotta with added salt that is pressed into a form, then crumbled. The milky cheese, similar to Feta but with a more milky, nutty flavor, will be available in a 5-ounce retail cup. Currently the cheese is available in whole wheels and wedges for retail.

Photo courtesey of BelGioioso Cheese

Kraft adds ‘a touch of Philly’ to line of shredded blends NORTHFIELD, Ill. — Kraft Foods Inc. recently launched a new shredded cheese line that incorporates its well-known Philadelphia Cream Cheese into the blend.

The new line, Kraft shredded cheese with “A Touch of Philly,” is available in five varieties: Mozzarella, Three-Cheese, Mexican Four-Cheese, Italian Five-Cheese and Triple Ched-dar. The line can be found at stores nationwide ranging from Target and Walmart to Loews, TOPS and Giant Eagle.

Kraft notes that adding “just a touch of cream cheese” does not add a significant amount of calories or fat — but it does add a lot of flavor.

“The addition of Philadelphia Cream Cheese makes the natural shredded cheese you love extra cream-ery,” Kraft says. “This is because when heated, cream cheese melts faster than natural cheese. Adding just a touch of cream cheese melts the natural cheese a little faster, offering a smoother, more even melt with less oiling off.”

Kraft notes the cheeses are ide-al for use in casseroles, Chicken Parmesan or meatloaf. For reci-pe ideas and more information, visit www.kraftfoods.com. CMN

http://www.belgioioso.com

Reprinted with permission from the Feb. 18, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com



T H E C H E E S E T A B L E


SONOMA JACKS*RXUPHW�&KHHVH�:HGJHV��´%HWWHU�%\�'HVLJQµ

3529,',1*�&86720(56�:,7+�48$/,7<�&+((6(�$1'�'$,5<�352'8&76�)25�29(5��<($56�

By Rena Archwamety

GREEN BAY, Wis. — As many Green Bay Packers fans still are celebrating their football team’s recent Super Bowl championship, Cooks Corner, a landmark kitchen store in Green Bay, Wis., looks forward to welcoming another cham-pionship team — a team of winning Wisconsin cheeses.

Cooks Corner, which bills itself as the “Nation’s Largest Kitchen Store,” currently carries about 20,000 different kitchen items throughout 15,000 square feet, and it is set to double in size this summer. The expansion will include a store-within-a-store cheese shop called “World Champion Cheeses of Wisconsin” featuring only award-winning Wisconsin cheeses from the World Championship Cheese Contest. The target grand open-ing date is June 1, just before Packers

New cheese store in Green Bay’s Cooks Corner will sell Wisconsin champion cheesestraining camp starts and football tourists begin migrating back to Titletown.

“That is a great crowd, no question about it. Especially this year,” says Dave Pflieger, general manager, Cooks Corner. “In Green Bay, that synergy is what we want to play off of.”

Green Bay’s reputation for champion-ship football could help shine a spotlight on Wisconsin’s reputation for world-class cheese. Just as people go to Lambeau Field to visit the Packers Hall of Fame and read players’ statistics, Pflieger says the store wants to have an area that pays homage to Wisconsin Master Cheesemakers with photos and other information.

“In the store, we want to tell them the stats. We want a map with pinpricks to show the location where every world champion cheese came from,” Pflieger says.

“We think because of America’s love of the Packers and cheeseheads, Green Bay is kind of a face, if you will, for Wisconsin cheese,” he adds. “Monroe might make more cheese, but to the world, it’s Green Bay. We think we can utilize that in a great way to help promote and bring awareness even further to the cheese.”

World Champion Cheeses of Wis-consin probably will carry at least 100 different kinds of Wisconsin cheeses, Pflieger says. Plans also include a dis-play of mammoth Cheddar wheels from Henning’s Wisconsin Cheese, Kiel, Wis., sales of fresh squeaky cheese curds, and hosting cheesemakers to do in-store demonstrations.

Store officials already have spoken with the Wisconsin Cheese Makers As-sociation, the Wisconsin Milk Market-ing Board and a number of Wisconsin cheesemakers.

“They think the idea is great. Why wouldn’t they?” Pflieger says. “We want to really make it be a spot where people learn about Wisconsin cheese, but also buy Wisconsin cheese and have access to all the best as judged by all the world.”

Other plans for the addition at Cooks Corner include an expanded classroom for cooking classes and cheese events, and an expanded area for clearance and closeout items.

Cooks Corner already carries a number of cheese-related items, from cheese knives and cutting boards to storage and shred-ders, so adding the cheese shop is a natural fit, Pflieger says. He expects the existing kitchen store customer base to enjoy the new cheese offerings, but he also expects to draw a wider audience of foodies and other local customers looking for cheese, tourists wanting to take Wisconsin cheese back home and, of course, the Packers fans. CMN

WASHINGTON — Green Bay Packers quarterback Aaron Rodgers is featured in the 14th annual winning Super Bowl Milk Mustache ad, which debuted in USA Today last Monday.

With this new ad, Rodgers joins a ros-ter of football stars including Brett Favre, Matt Hasselbeck and Michael Strahan. His ad copy reads, “Game-winning pass.

New ‘got milk?’ ad features Aaron RodgersEver since I was a kid, my mom and coach taught me that to play my best, I need to fuel up to play 60. And one of the best ways to do that is with milk. Even now that I’m a Super Bowl champion, milk’s still a part of my game plan. Make it a part of yours. got milk?”

F o r m o r e i n f o r m a t i o n , v i s i t w h y m i l k . c o m . C M N

COLUMBIA, Pa. — Turkey Hill Dairy has announced it will launch the Turkey Hill Experience, a new attraction designed to showcase this spring.

The new attraction will allow visitors to learn more about how the dairy works, how ice cream is made and the history of Turkey Hill Dairy.

The 26,000-square-foot facility’s inter-

active exhibits also will provide visitors an opportunity to make their own ice cream flavor and take a walking tour to get a closer look at how ice cream is made. Additional features include a cafe and gift shop.

According to the company, the Turkey Hill Experience is being built in a historic silk mill and is being renovated after be-ing empty for more than 25 years. CMN

Turkey Hill Dairy adds interactive exhibits

http://www.mctdairies.com

http://www.dairyfoodusa.com


NEWS/BUSINESSFebruary 18, 2011 — CHEESE MARKET NEWS® 11

BUDGETContinued from page 1

please enter my subscription to1 YEAR RATES: ELECTRONIC 1 YEAR RATES: 2 YEAR RATES:❑ $135 (2nd Class) ❑ $135 (E-mail Only. No Mail Service)❑ $195 (2nd Class)❑ $190 (1st Class/Canada) ❑ $210 (E-mail With 2nd ❑ $315 (1st Class/Canada)❑ $330 (International) Class Mail Service) ❑ $525 (International)❑ Payment enclosed ❑ Bill Me❑ Payment by credit card: ❑ VISA ❑ MASTERCARD ❑ AMERICAN EXPRESSCard # ________________________________________________ Exp. Date______ Sec. Code_____

NAME: _______________________________________________________________________________________

TITLE: _______________________________________________________________________________________

COMPANY:____________________________________________________________________________________

ADDRESS: ____________________________________________________________________________________

EMAIL: ____________________________________________________ PHONE: ___________________________

CITY: _____________________________________________________ STATE:________ ZIP: _______________

SIGNATURE: _______________________________________________________ DATE: ____________________

Mail to: Subscriber Services • CHEESE MARKET NEWS • P. O. Box 628254 • Middleton, WI 53562Phone (608) 831-6002 • Fax (608) 831-1004 • E-mail [email protected] • www.cheesemarketnews.com

as more retirees start to receive Social Security and Medicare benefits.

Under the proposal, more than half of all federal agencies would receive budget reductions, IDFA says. Almost 40 education programs would be merged into 11 programs and another 13 would be eliminated completely.

Approximately a third of the savings identified in the budget would come from new revenue-raising policies, IDFA says. For example, the proposal assumes that the Bush-era tax cuts will expire in 2013. It also includes a provision to raise revenue through additional measures, such as limiting itemized tax deduc-tions for households making more than $250,000 a year, enacting a new tax on hedge fund managers and charging a $30 billion fee for financial institutions that received Troubled Asset Relief Program (TARP) funds. Reducing subsidies for oil and gas companies and ending tax breaks for companies doing business abroad would offer additional savings.• USDA budget

USDA says that at first glance there are only minor changes to its budget from the last couple years. Mandatory programs, which include Commodity Credit Corp. (CCC) outlays and food and nutrition programs, have risen from $96 billion in 2009 to $122 billion this fiscal year, USDA notes. They are proposed at $121 billion for fiscal year 2012.

Discretionary programs, which in-clude most farm safety net programs, conservation, rural development and research are proposed for another cut to $24 billion in 2012, down from $26 billion in the current year and $32 bil-lion in fiscal year 2009.

USDA notes the primary reduction is due to cuts in crop insurance. Of the $145 billion total, 74 percent is for nutrition assistance and 13 percent is for farm and commodity programs, with conservation and forestry at 7 percent.

“In this budget, we are cutting programs not because we want to, but because we have to,” says U.S. Agriculture Secretary Tom Vilsack. “The budget ful-fills the president’s pledge to completely eliminate earmarks. We are promoting good government and streamlining agency operations in a host of programs. In the end, we must cut to grow.”

Roger Johnson, president of the National Farmers Union (NFU), says that while NFU members understand the importance of balancing the federal bud-get and reducing the deficit, agriculture and the farm safety net already were cut by $4 billion in 2010 as a result of the Standard Reinsurance Agreement for federal crop insurance programs.

“NFU will oppose any budget reduc-tions to agriculture programs that are deeper than cuts to other departments,” he says.

Johnson notes that wild swings in commodity prices have made the last 10 years among the most volatile on record

for farmers, and government intervention was required to assist several sectors of agriculture, such as dairy and swine, to survive times of low prices and high input costs in just the past several years.•FDA budget

FDA is requesting a budget of $4.3 billion to “protect and promote the public health” as part of the president’s proposal, a 33 percent increase over the FDA enacted budget for fiscal year 2010, the agency said this week.

“FDA protects and promotes the health of all Americans through every stage of life,” says Margaret Hamburg, FDA commissioner. “The breadth of this mandate means that FDA responsibili-ties continue to grow. The new budget contains new resources so that FDA can fulfill its growing responsibilities to the American public.”

FDA’s proposed budget includes a $324 million initiative to transform food safety and nutrition. With this increase, FDA says it will begin to implement the Food Safety Modernization Act and also establish a prevention-focused food safety system.

“FDA also will empower Americans to make more healthful food choices through menu and vending machine labeling,” Hamburg says.

The agency also requests $49 million to strengthen its core regulatory scien-tific capacity, saying it will help harness advances in science and technology to modernize and streamline the regula-tory pathway and improve the review and approval process for products relying on new and emerging technologies.•EPA budget

Meanwhile, the administration proposed a fiscal year 2012 budget of $8.973 billion for the U.S. Environmental Protection Agency (EPA). The proposal represents about a 13 percent decrease from the fiscal year 2010 budget of $10.3 billion.

“This budget focuses our resources on the most urgent health and environmen-tal challenges we face,” says EPA Admin-istrator Lisa Jackson. “Though it includes significant cuts, it provides EPA with what we need to fundamentally protect the health of the American people.”

The budget includes a $27.5 million increase in enforcement and compli-ance, allowing for investments to increase efficiencies and streamline enforcement by using the latest e-re-porting and monitoring tools, Jackson says. EPA will increase oversight and inspections at high-risk chemical and oil facilities.

It also includes $1.2 billion for state and tribal grants, an overall increase of $84.9 million over fiscal year 2010. The funding will help communities take steps to meet the pollution standards EPA has developed under the Clean Water Act and Clear Air Act, Jackson notes.

An additional $46 million is request-ed for regulatory efforts to reduce green-house gas pollution and implement greenhouse gas reporting requirements under the Clean Air Act. This includes $25 million for states and $5 million

for EPA to address greenhouse gases in Clean Air Act permitting activities.• Continuing Resolution bill

The House of Representatives also recently proposed a CR to fund the government from March 1 until the end of fiscal year 2011 on Sept. 30.

U.S. Rep. Hal Rogers, R-Ky., last week announced a partial list of 70 spending cuts that will be included in the CR bill. The cuts, which will exceed $74 billion, include $220 million from FDA’s budget, as well as $201 million from USDA’s Farm Service Agency (FSA), $246 million in agriculture research, $758 million from the Women, Infants and Children (WIC) program, $544 million in international food aid grants, $237 million in rural development programs, $53 million from the Food Safety and Inspection Service (FSIS) and $755 million from the Centers for Disease Control and Prevention (CDC).

Rogers notes all these reductions are compared to Obama’s fiscal year 2011 budget request.

“The Continuing Resolution ... represents the largest reduction in non-security discretionary spending in the history of the nation,” Rogers said this week. “It funds the federal government for the remainder of the 2011 fiscal year, but, most importantly, it answers taxpayers’ calls to right our nation’s fiscal ship, making specific, sub-stantive and comprehensive spending reductions — cutting more than $100 billion compared with the president’s fiscal year 2011 budget request.”

Rogers adds that the House, Senate and White House must come together to complete this process before March 4, when its current funding measure expires.

“It is critically important that we move this CR, avoid a government shutdown and get these spending cuts passed by the Congress and signed by the president. The American people expect no less,” he says.

NFU’s Johnson says as the U.S. economy begins to emerge from a recession, caution is advised in taking drastic action.

“While we advocate for sensible

spending reductions, the proposed cuts go far beyond what is reasonable,” Johnson says. “They are disproportion-ately deep for agriculture programs. Ag-related programs account for about 2 percent of all federal spending in fiscal year 2010 but will suffer 22 percent of all the discretionary funding cuts under this proposal.”

Rep. John Dingell, D-Mich., also called on the House to provide the appropriate funding to implement the Food Safety Modernization Act.

“The Congressional Budget Office estimates FDA will require $1.4 billion in appropriations over five years to implement the provisions of the law,” Dingell says. “While I understand the need for fiscal responsibility in this time of unprecedented budget deficits, it is imperative that we not compromise public safety in the name of being ‘penny-wise but pound foolish.’”

In addition, a statement released by the White House on Tuesday says the administration “strongly opposes” such a measure, with the White House vowing to veto a CR that “undermines critical priorities or national security through funding levels or restrictions … or curtails the drivers of long-term economic growth and job creation while continuing to burden future generations with deficits.”

Meanwhile, in the Senate, U.S. Sen. Rand Paul, R-Ky., recently introduced the Cut Federal Spending Act of 2011, which would reduce federal spending by $500 billion in fiscal 2011 alone.

Under Paul’s bill, amounts made available to USDA for fiscal year 2011 would be reduced on a pro rata basis by the amount required to bring the total reduction to $42.5 billion.

Four agencies within USDA would be defunded effective on the date of enact-ment of Paul’s Bill, including FAS, the Agricultural Research Service, National Institute of Food and Agriculture and Resources Conservation Service.

Amounts made available to FDA under Paul’s bill for fiscal 2011 would be reduced by $230 million, while amounts made available to CDC would be cut by $1.165 billion. CMN

http://www.cheesemarketnews.com




Comings and goings … comings and goings

The California Milk Advisory Board recently announced elections to its executive committee. Richard Michel, Waterford, Calif., has been elected to serve as chairman of the committee; Do-menic Carinalli Jr., Sabastopol, Calif., has been elected vice chairman; Essie Bootsma, Lakeview, Calif., has been re-elected as secretary; Frank Ferreira, Tehama County, Calif., has been elected treasurer; and James Netto, Hanford, Calif., Richard Wagner, Escalon, Calif., and Dante Migliazzo, Atwater, Calif., have been elected to serve the commit-tee as members-at-large.

FrieslandCampina, Amersfoort, Netherlands, recently announced that Emmo Meijer has been appointed corporate director of research and development. Meijer, who will begin his new position April 1, succeeds Toon van Hooijdonk, who will be stepping down April 30 following a 25-year career with the company and its legal predecessors. Meijer since 2005 has served as senior vice president at Unilever. He previously served in several positions with DSM.

G&R Foods Inc., Reedsburg, Wis., has announced its merger with Molitor and Associates, Monroe, Wis., and that Tina Cole of G&R Foods will assume the responsibility of customer and vendor relationships of Molitor and Associates. As a result of the merger, G&R Foods

will be able to offer a complete line of specialty cheeses for the foodservice and deli segments while continuing to sell its existing line of bulk cheese, butter, powder and specialty and nutritional whey products.

Intelligrated recently announced the appointment of Kevin O’Reilly to the position of sales engineer II for the company’s Somerset, N.J.-based eastern regional operation. In his new position, O’Reilly will be respon-sible for sales in the region and will provide sales, concepting, estimating, engineering and client relation ser-vices.O’Reilly has 22 years of material handling solutions experience and previously worked in integrated system sales as a support manager and as a technician.

Vermont Farmstead Cheese Co., South Woodstock, Vt., recently an-nounced that Rick Woods has been named vice president of creamery opera-tions. Woods will be head of cheese pro-duction and research both in the South Woodstock creamery and at the new Windsor, Vt., production and affinage facility that is set to open this summer. Woods has 16 years of cheesemaking experience and previously worked at Grafton Village Cheese in positions including cheesemaker, plant man-ager and regional sales manager. CMN

PEOPLE

EVENTS

ST. PAUL, Minn. — The University of Minnesota’s College of Food, Agricul-tural and Natural Sciences will hold is Introduction to Food Chemistry Short Course March 29-31 in St. Paul, Minn.

The short course is intended for those working in the food industry but have not had formal training in food chemistry.

Session topics will cover basic food chemistry principles in addition to the functionality of food ingredients in product development, manufacturing and storage, functional foods or food ingredients, and the primary reactions

Short course will discuss food chemistryin foods that lead to changes in nutri-tional and sensory qualities.

Instructors will include Mirko Bun-zel, food chemist at the University of Minnesota, Baraem Ismail, an assistant professor at the University of Minnesota and Devin Peterson, also an associate professor at the university.

The early bird registration fee is $750 if registered by March 1 and $800 thereafter.

For additional information, con-tact Katie Koecher at 612-624-4793, e-mail: [email protected]. CMN

ST. PETERSBURG, Fla. — The In-ternational Dairy Foods Association (IDFA) will hold its Ice Cream Tech-nology Conference March 2-3 in St. Petersburg, Fla.

The conference is intended for pro-fessionals in the ice cream industry who are involved in frozen dessert technology, including plant managers, regulatory compliance personnel, and research and development and quality assurance staff. Suppliers to the ice cream industry are also encouraged to attend.

The meeting will focus on frozen dessert research, technology, new market trends, food safety, labeling and opportunities. It also will include

IDFA to hold ice cream tech conference networking opportunities and product tasting, including the annual Innovative Ice Cream Flavor Competition.

Session topics will include “Sensory Evaluation and Product Concept Test-ing,” “Looking into the Future of FDA’s Food Safety Programs,” “Capitalizing on Cultures in Frozen Desserts” and “Getting it Right: Flavor Labeling and Flavor Extenders.”

The registration fee is $995 for IDFA members and $1,195 for non-members.

For more information, contact MacKenzie Costello, IDFA meetings assistant & registrar, at 202-220-3557, e-mail: [email protected]. CMN

SEATTLE —The Seattle Cheese Festi-val will be held May 14-15 at Pike Place Market in Seattle.

The festival will provide the opportu-nity for trade, retail customers and the public to explore cheese from around the world. It will feature cheese tasting, chef demonstrations, Mozzarella making, a wine garden and educational seminars.

During the month of the festival, local restaurants and chefs also will feature cheese dishes throughout the Seattle area.

For those interested in exhibiting,

Artisan cheese will be showcased at the upcoming Seattle Cheese Festival in May

the entry fee is $225 and must be paid by March 31. Cheesemakers can register as an exhibitor at www.seattlecheesef-estival.com/exhibitors.

Sponsorship opportunities also are available. Sponsorship packages include the founder sponsor for $8,000, the patron sponsor for $5,000 and the benefactor sponsor for $1,500. Applica-tions are due Feb. 28.

For more information, contact Pat McCarthy, event coordinator, at 206-622-0141, e-mail: pat@se-att lecheesefest iva l .com. CMN

SAN FRANCISCO — The Cheese School of San Francisco will offer a Three-Day Intensive Cheese Educa-tion Program April 10-12 in San Fran-cisco.

The program is intended for working and aspiring cheese professionals and others in the foodservice industry. It is designed to equip participants with the knowledge necessary to procure, sell, care for and serve premium cheese at a professional level.

The three-day course will be led by

Cheese School of San Francisco to host cheese education course April 10-12

Daphne Zepos, an instructor who has previously taught this program at The Cheese School of San Francisco as well as “Master Class” programs at the Arti-sanal Premium Cheese Center in New York City. She also is the proprietor of the Essex Street Cheese Co. and acts as judge in cheese competitions in the United States and Europe.

The registration fee is $1,100.For additional information,

contact The Cheese School of San Francisco at 415-346-7530. CMN

http://www.relco.net


C L A S S I F I E D A D V E R T I S I N G

M & W PROTECTIVE COATINGS installs

USDA approved heavy duty fiberglass floors, walls and tank linings — also epoxy systems and tile grouting. 2239 -- 16 3/4 Avenue, Rice Lake, WI 54868; (715) 234-2251. TFN / 4

• FLOORING 4


HELP WANTED 7• HELP WANTED 7•

FOR ALL YOUR SEPARATOR NEEDS: Top

quality, reconditioned machines at unbeatable

prices. For more information, call Dave Lambert,

Great Lakes Separators at (920) 863-3306 or email

[email protected]

JUST ARRIVED. WESTFALIA SEPARATORS: Models MSA 160 AND MSA 200. Call Dave

Lambert today at Great Lakes Separators at (920)

863-3306 or email [email protected]

EQUIPMENT 1•

CHEESE MARKET NEWS is here to deliver original, straightforward, reliable news to help you run your business more efficiently and profitably.

What better way to tap into the effectiveness of this one-stop news source than to advertise your products or services on our classified page or in the display section of our newspaper?

My job is to help you sell your equipment, ingredients or services or to find a qualified candidate to join your company, and I take my job seriously.

Getting results is as easy as picking up the phone or emailing me to discuss your needs. I am here to listen and help you achieve your goal. Please call me at (608) 831-6002 or email me at [email protected] and let me go to work for you today.

“Say Cheese . . . Say CHEESE MARKET NEWS”!

Susan QuarnePublisher

EQUIPMENT 1•

CHEESE CUTTERSTHAT

BOOST PROFITSPHONE: FAX:

1-888-2-GENMAC 1-920-458-8316E-MAIL: [email protected]

GENERAL MACHINERY CORPORATIONP.O. BOX 717

SHEBOYGAN, WI 53082-0717

Technical Sales ManagerMidwest Territory

FBC Industries, Inc., a leading manufacturer of liquid food preservatives and

additives is seeking a Technical Sales Manager to head our sales efforts in

representing our whey processing aids and other liquid additive product sales.

In-depth knowledge of cheese processing and whey product applications is

required. Previous plant management experience in a cheese processing

plant desired.

Under direction of Sr. Management, Technical Sales Manager would be

UHVSRQVLEOH�IRU�KLJK�SUR¿OH�FXVWRPHU�PDQDJHPHQW�DQG�EXVLQHVV�GHYHORSPHQW��VSHFL¿FDOO\�RI�ZKH\�SURFHVVLQJ�DLGV�DQG�FRPSOLPHQWDU\�SURGXFWV��3RVLWLRQ�is also responsible for developing presentations, partnering with non-technical

sales team members and instrumental in working with R & D on product

development.

3UHIHUUHG� TXDOL¿FDWLRQV� LQFOXGH� D� GHJUHH� LQ� )RRG� 6FLHQFH�� 0LFURELRORJ\��Biology or related science discipline with at least 7 years of experience in a

similar position.

3RVLWLRQ�RIIHUV�D�FRPSHWLWLYH�VDODU\�ZLWK�FRPPLVVLRQ�DQG�EHQH¿WV�LQFOXGLQJ�health, dental, STD/LTD, life, 401k, HSA, HRA and more.

Please submit resumes to: [email protected] company information please visit: www.fbcindustries.com

SENIOR PROCESSENGINEERSTetra Pak Cheese and Powder Systems is the global leader and cutting-edge provider of patented cheesemaking equipment, powder systems, engineering, design, installation, automation, start-up and turn-key solutions for the food and dairy industry.We are looking for 2 engineering candidates with an interest in process engineering anda passion for creating solutions for the dairy and food industry.

Job Description:�• Develop detailed process and instrument diagrams.

�• Ensure system design which complies with customer specification, general process

descriptions, company standards and State and Federal regulations.�• Size and/or specify all system components for estimating and procurement.

�• Prepare system estimates and proposal documents.

�• Review plant and equipment layouts.

�• Ensure projects are completed according to schedule and budget

and review project schedules.

�• Develop, document and maintain company process engineering

standards, estimating procedures, and project management guidelines.

�• Assist with system installation and commissioning.

�• Assist with customer presentations to support sales.

�• Provide supervision and mentoring of process engineers and

design engineers to achieve above tasks; assume responsibility for multiple concurrent projects and perform other job-related

duties as assigned.

Qualifications:�• Bachelors degree in Mechanical, Chemical or Food Science Engineering �• 5 years related experience in evaporation and drying and/or

food and dairy processing systems�• Understanding of regulatory requirements.

�• Understanding of process design

�• Proficient in Microsoft Project, Excel, Word, Outlook,

AutoCad LT

�• Excellent communication and interpersonal skills.

�• Able to multi-task Strong problem solving and analytical ability

�• Presentation skills, attention to detail, ability to plan/delegate

Please send resume to:Tetra Pak Cheese and Powder [email protected],Winsted, MN 55395


EQUIPMENT 1•

PLANTS: SALE/LEASE 5•

PLANTS: WANTED 6•

EQUIPMENT WANTED 2•

BUSINESS SERVICES 3•

http://www.fbcindustries.com

http://www.genmac.com

http://www.tetrapak.com



NEWS/BUSINESS


CLAS SI F IED ADVERTIS INGCHEESE/DAIRY 12•

DAIRY PRODUCTS MARKETING: Cheese

sales specialists in all types of cheese. Visit our

NEW website: www.dairyproductsmarketing.com

or call (920) 921-9449.

SHEEP MILK POWDER: High quality 100%

sheep milk powder available for immediate

U.S. delivery. From grass fed herds, all natural,

no additives, low heat. Specifications and samples available upon request. Please contact:

[email protected] or call 201.866.5001

subsectors of the dairy market into wider milk prices, the committee says, adding that a number of appropriate changes in administration of these pro-grams are within the current authority of the secretary.

The committee also has reviewed and considered alternative actions that would require new legislation or regula-tion. In doing so, it was guided by the charge from Vilsack to focus attention on dairy farm profitability and milk price volatility, the DIAC notes.

Therefore, some recommendations relate to actions that primarily address issues of milk price protection, stabiliza-tion or regulation.

“In a sense they approach the prob-lems of milk price volatility from the perspective of ‘can this be prevented or reduced,’” the committee notes.

Other recommendations take the perspective that, if price volatility cannot be avoided, what can be done to reduce its impacts on the industry. These suggestions are referred to as “income protection or stabilization.”

In the last section of the report, the committee combines a variety of recommendations that seek to improve dairy farm profitability or enhance the development of dairy markets, using strategies different from price or in-come stabilization.

One recommendation Novakovic highlights is the review of FMMOs, noting it is something that needs more

U.S. House passes resolution to review impact of federal regulationsWASHINGTON — The U.S. House of Representatives last week passed a resolution requiring the Agriculture Committee and other House commit-tees to review federal regulations to determine their impact on jobs and economic growth.

To comply with the order, House Agriculture Committee Chair Frank Lucas, R-Okla., presented an oversight plan that would review the efficiency of USDA regulations that impede the economy. The list includes the price regulations under the federal milk marketing order (FMMO) system, as well as other programs under USDA’s jurisdiction.

The International Dairy Foods Asso-ciation (IDFA) this week said it applauds Lucas for including the FMMO review in the committee’s oversight plan.

“These regulations have a direct impact on manufacturers’ ability to innovate and increase jobs in dairy

plants across the country,” says Ruth Saunders, IDFA vice president of policy and legislative affairs.

IDFA notes the USDA milk price regulations are authorized under the Agricultural Marketing Agreement Act of 1937 and were last significantly up-dated after Congress passed the Federal Agriculture Improvement and Reform Act of 1996.

The FMMO regulations are binding on dairy manufacturers and stipulate what prices are paid for milk depending on how the milk is used for different dairy products. Therefore, manufacturers base decisions on government price formulas instead of the marketplace, IDFA says.

USDA’s Agricultural Marketing Service (AMS) enforces the milk price regulations with 378 federal employees and collects more than $50 million annually from dairy manufacturers to cover the salaries and expenses of the FMMO offices, IDFA adds. While the

House recently has proposed to reduce the taxpayer-funded appropriation for AMS by 10 percent, the fiscal year 2012 budget proposed for the FMMO offices would increase by $4 million or more than 7 percent compared to current levels.

IDFA notes that the Office of Man-agement and Budget is prohibited by legislation from reviewing the funding and regulations under the FMMO but that the Obama administration has requested that Congress lift this restric-tion in its pending budget. IDFA supports this proposal.

In addition, IDFA last month respond-ed to a request from Rep. Darrell Issa, R-Calif., chair of the House Committee on Oversight and Government Reform, for a list of regulations that have harmed job growth in the dairy industry.

IDFA notes the FMMO pricing system along with the slow process for changing product standards of identity are the main obstacles for the industry. CMN

DIACContinued from page 1

Turn to PROPOSAL, page 15 D

Regional Sales ManagerPacific Northwest • Portland or Seattle • Home Office

Responsibilities:• Execute against Strategy and Direction within your designated

territory • Lead Customer development at designated key accounts • Perform Broker Management with designated Brokers. • Train Broker and Distributor Sales force in Emmi Roth USA and product knowledge • Ensure Broker team execute against “MAPS” (merchandising, assortment, pricing, shelving) objectives with operational excellence • Provide Sales perspective to key Emmi Roth USA personnel • Keep Sales management closely informed of all Business related activities within the defined territory • Manage assigned budgets

Qualifications:• Minimum of a Bachelor’s degree or equivalent

• Five plus years of progressive leadership experience in Sales positions • Superior oral and written communication skills • Excellent interpersonal skills • Demonstrated ability to lead and support other staff members • Excellent computer skills in a Microsoft Windows environment; must include Excel and skills in database management and record keeping

Please apply online on our career’s page: http://www.emmirothusa.com/en/login-areas

No phone calls please!Emmi Roth USA, Inc. is an award-winning specialty cheese manufacturer and importer headquartered in Monroe, Wisconsin and Orangeburg, New York, with satellite offices in Verona, WI and Mendham, NJ.

The company is a subsidiary of Emmi AG, a global dairy corporation based in Lucerne, Switzerland. Emmi Roth USA, Inc.’s product line encompasses over 150 varieties of domestic and imported specialty cheese, which are nationally distributed at foodservice and retail. Additionally, the company represents several smaller cheese manufacturers through sales and marketing support.

CHEESE WANTED:Junior, undergrades, aged and current blocks, barrels and trim; odd offerings are our specialty. Top prices paid.

MCT Dairies, Inc.Toll Free 877-258-9600

(973) 258-9600Contact: Ken Meyers

Senate bill would increase penalties for distribution of adulterated foodWASHINGTON — U.S. Sen. Herb Kohl, D-Wis., recently introduced the Food Safety Accountability Act, which increases criminal penalties on individuals who deliberately put the U.S. food supply in jeopardy.

According to Kohl, knowingly dis-tributing adulterated food is merely a misdemeanor under current law, and the fines that result from criminal violations fail to protect the public from harmful products. This legisla-tion allows prosecutors to seek up to 10 years jail time for people who threaten public health by knowingly placing contaminated food products into the food supply.

The bill also gives the U.S. Depart-ment of Justice the tools it needs to prosecute crime involving food safety and will hold accountable those who knowingly violate food safety laws, Kohl adds, noting this is a neces-sary step toward making the U.S. food supply safer. CMN

http://www.emmirothusa.com

http://www.mctdairies.com


NEWS/BUSINESSFebruary 18, 2011 — CHEESE MARKET NEWS® 15


PROPOSALContinued from page 14

InterContinental Mark Hopkins, San Francisco

For more information on this program or any other DPTC course, please contact

(805) 305-5056www.calpoly.edu/~dptc/ingredients/index.html

and more . . .

Pre-conference one-day workshop on:

Monday, February 28, 2011InterContinental Mark Hopkins HotelSan Francisco, CA

Cost:

Instructors:Allen Foegeding,Phillip Tong,Registration for this workshop is separate from the symposium. You may use the same registration link for both the symposium and the workshop. Lodging is not included.

GROUP

MEDIA

U.S. GOVERNMENT

ACADEMIA

Register today at www.calpoly.edu/~dptc/ingredients/index.html

careful work.The committee says that the Sec-

retary of Agriculture should appoint a committee to review implications of FMMOs, including, but not limited to, end-product pricing’s impact on milk price volatility and impact of classi-fied pricing and pooling on processing investment, competition and dairy prod-uct innovation. All 17 members voted in favor of this recommendation.

Another recommendation he notes is to modify the Milk Income Loss Contract (MILC) program and provide a margin insurance option using funds from the elimination of the DPPSP and Dairy Export Incentive Program (DEIP).

The committee recommends con-tinuing MILC with a production cap based on available funds, with two modifications: Use an all-milk income/feed cost margin trigger, and provide an insurance program for production excluded by the cap to provide protec-tion for larger producers.

Novakovic notes this recommenda-tion is not “hugely different” from what is proposed in the National Milk Produc-ers Federation’s Foundation for the Future proposal, “but we say, let’s retain MILC and add a margin option.”

“We thought this may be an appealing alternative to farmers who don’t want to give up MILC,” he adds.

One committee recommendation that was more controversial was the recom-mendation to adopt a growth manage-ment program, Novakovic notes. The DIAC says the federal government should adopt a growth management program that allows new producers to enter and allows producers to expand production. The vote on this recommendation was split with nine in favor and eight opposed.

“The DIAC is not prepared to endorse a specific plan; however, we agree that a primary challenge in taming milk price volatility is to better coordinate milk marketings with milk usage over time,” the committee says. “We do not agree on whether this should be a public or a private endeavor.”

The DIAC says the most compelling justification for a federal program to help the dairy industry better align milk production growth with demand is that experience has amply demonstrated that when supply and demand are not aligned in the short run, milk prices can rise or fall dramatically.

“Hence, if we could anticipate long markets, we could avoid or minimize the resulting drop in prices,” the committee says. “Other countries and regions have had government-regulated production controls. At their most extreme, such programs include very sophisticated and elaborate programs that establish marketing quotas on each farm, require quota to market milk, and include stiff and prohibitive penalties for bringing more milk to market.”

The committee notes that indus-

try advocacy groups have put several growth management plans forth in re-cent months, and, although there are important differences in the leading proposals, they all strive to tame milk price volatility in general and avoid or mitigate especially low milk prices.

“In this sense, they are intended to be a safety net,” the DIAC says. “At the same time, all proponents have made it clear that their intention is not to stifle or discourage long-term investment in the dairy sector. For example, they wish to avoid the accu-mulation of value that occurs within strict quota systems, where the right to sell milk may take on very high values.

“The new plans allow for natural, long-term production growth, in line with the underlying growth in domestic and world

demand. They try to provide for the natural exit of existing producers and enable new producers to enter the industry. A healthy exit and entrance is considered necessary to maintain a viable dairy structure,” the committee says. “These plans aim to have little impact on import and export activity; be national and mandatory; and reduce the cost of government dairy programs in general.”

The DIAC says that analyses pre-sented to the committee suggest that a growth management plan could be effec-tive in reducing milk price volatility and could do so at a government cost that is less than the cost of current programs.

“The division in the vote, I think, is a reasonable reflection of the division of the industry at large on this issue,” Novakovic

says. “But the committee agreed that we won’t tame price volatility unless we come up with a better way to discipline supply — it’s just a question of how.”

Novakovic notes that the committee doesn’t expect all of the recommenda-tions will be accepted by the industry and lawmakers.

“I’d say don’t take anything for granted on what will or won’t happen,” he says. “The world changed on Nov. 2, 2010. The slate is pretty fresh right now. A lot of people are looking at these issues for the first time.”

Novakovic adds that “no one should assume that anyone in Washington knows your business as well as you do. You have to take the responsibility to speak up if you’ve got a story to tell.” CMN

http://www.calpoly.edu/~dptc/ingredients/index.html

Reprinted with permission from the Feb. 18, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Feb. 18, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com


NEWS/BUSINESS

SAPUTOContinued from page 1


Craig Linz – part of the Tetra Pak team.

YOU NAME IT. WE DELIVER.Whatever your cheese needs, Tetra Pak can deliver what it takes.

From full line solutions to individual pieces of equipment and

components. Backed by decades of dedication to serving

cheese producers. We can help you throughout a project

– from the initial concept through design to installation,

commissioning and training. All the while focusing on

your particular needs and exacting standards.

We’d like to show you how we can enable you to

achieve the quality of cheese and the profits you de-

mand. Get in touch with us today to see how we can put

our cheese expertise and experience to work for you.

Just phone Craig or one of our sales engineers at 320 485 4401or send an email to [email protected]

Tetra Pak, and PROTECTS WHAT’S GOODare trademarks belonging to the Tetra Pak Group.

DCI Cheese Co. is headquartered in Richfield, Wis., and its product portfolio consists of domestic and imported specialty cheeses, marketed nationwide under brand names such as County Line, Great Midwest, Joan of Arc, King’s Choice, Nikkos, Salemville, il Giardino and Organic Creamery, as well as under private labels.

DCI employs approximately 475 people. For the year ended Dec. 31, 2010, DCI had sales of about $460 million, and earnings before interest, income taxes, depreciation and amortization of approximately $34 million. CMN

income and food prices.U.S. retail food prices will increase

faster than the overall rate of inflation in 2011 and 2012, reflecting higher food commodity prices and energy costs, the report says. Food prices will rise less than the general inflation rate over the remain-der of the projections, largely reflecting production increases in the livestock sector which limit meat price increases.

Following a contraction of about 2.6 percent in 2009, the U.S. economy is ex-pected to grow by 2.4-2.5 percent in 2010 and 2011; 2.8 percent in 2012; and then settle at a longer-term rate of 2.6 percent in 2013 and beyond, the report says. With

U.S GDP growing more slowly than the world economy throughout the projec-tions period, the U.S. share of global GDP falls below 25 percent by 2020.

USDA notes that the return of global economic growth beginning in 2010 and the continuation of population gains are expected to boost food demand.

In addition, growing biofuel demand will remain an important factor shaping the projections for world trade, U.S. agricultural exports and commodity prices, USDA says. Also supporting the outlook for U.S. agricultural exports is the cumulative effect of the depreciated U.S. dollar since 2002 and its continued decline through the projection period. The declining dollar makes U.S. agricul-tural exports increasingly competitive in international markets.

Specifically, the report shows that the value of dairy exports is expected to increase to $4.7 billion by 2020.

Meanwhile, dairy import value is expected to increase to $3.4 billion by 2020.

Consumer price indices for all food through 2020 show moderate increases, including dairy products. The report shows the consumer price index for dairy is expected to increase from a pro-jected 199.245 in 2010 to 227.5 in 2015 (14.2 percent over the five-year period) and to 252.5 in 2010 (26.7 percent over the 10-year period).

USDA says domestic commercial use of dairy products is expected to increase somewhat faster than the growth in U.S. population over most of the next decade. Cheese demand will benefit from greater

consumption of prepared foods and in-creased away-from-home eating. However, per capita consumption of fluid milk is expected to continue to decline slowly.

Milk production is projected to con-tinue rising over the projection period, although at a slower pace than in the past several years. An upward trend in output per cow is expected to continue, while milk cow numbers will decrease in 2012-2020.

The report shows milk production in-creasing from an estimated 192.8 billion pounds in 2010 to 207.5 billion pounds in 2015 and 223.1 billion pounds in 2010.

The number of cows is expected to decrease from an estimated 9.1 million head in 2010 to 9.0 million head in 2015 and 8.9 billion by 2020.

The all-milk price is projected to increase over the projection period. USDA forecasts the all-milk price will increase from an estimated $16.35 per hundredweight in 2010 to $17.45 per hundredweight in 2015 and $18.70 per hundredweight in 2020.

The report’s projections are based on specific assumptions about macro-economic conditions, policy, weather and international developments, with no domestic or external shocks to global agricultural markets. Provisions of current law are assumed to remain in effect through the projection period. The projections in this report were pre-pared during October-December 2010, reflecting a composite of model results and judgment-based analyses.

Production adjustments are made in the livestock sector during the first sev-eral years of the projections in response to high grain and soybean meal prices in 2011. Long-term developments for global agriculture reflect a resumption of steady world economic growth follow-ing the global recession and continued demand for biofuels, which combine to support increases in consumption, trade and prices. Thus, after near-term declines from 2011 record levels, the value of U.S. agricultural exports and net farm income each rise through the rest of the decade.

The report is available on the Office of the Chief Economist’s web-site at www.usda.gov/oce. CMN

REPORTContinued from page 1

http://www.tetrapak.com

diac to vote on ï¬nal package of recommendations march 3

Documents