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USDECNewsSeptember 2008INSIDE:
U.S. Dairy Industry News
U.S. Dairy Industry Aims to
Reduce Carbon Footprint ..........1
Milk Powder, Cheese, Butter
Lead U.S. Export Gains..............2
In the News ................................3
Cheese & Manufactured Products
Cheese Inspires New Menu
Options at U.S. Restaurants ......4
Ingredients
DMI Showcases New
Applications for Dairy
Ingredients at IFT 2008 ..............6
Nutrition
Dairy Proteins for
Optimal Health ..............................8
Meet Our Members
Gerber California, Inc...............10
Hoogwegt U.S., Inc.....................11
MCT Dairies, Inc.......................12
U.S. Dairy Export Council
2101 Wilson Blvd. Suite 400
Arlington, VA 22201 USA
Telephone 703-528-3049
Fax 703-528-3705
E-mail: [email protected]
Website: www.usdec.org
U.S. Dairy Industry Aims to
Reduce Carbon Footprint
The U.S. dairy industry is thinking
green, proactively addressing a major
concern of buyers, consumers and
policy-makers worldwide.
More than 250 dairy farmers, proces-
sors, academics, government and
association officials came together in
Rogers, Arkansas, this summer for a
Sustainability Summit. It marked the
U.S. dairy business’ first major step in
a comprehensive industry-wide initia-
tive to identify and address
sustainability issues. During the meet-
ing, attendees developed an action
plan of concrete steps designed to reduce the industry’s carbon footprint, focus-
ing on operational efficiencies and innovations to reduce greenhouse gas
emissions while ensuring financial viability and industry growth.
“Sustainability is a challenge that requires industry-wide solutions,” says Tom
Gallagher, chief executive officer of Dairy Management Inc.™ (DMI). “Decision-
makers from across the dairy value chain are working together to commit to
concrete, innovative solutions. This will ensure an economically, environmentally
and socially sustainable industry.”
Summit attendees recommended a number of actions, including:
• Reducing energy use in the milk supply chain by developing new milk han-
dling and processing technologies and procedures
In the U.S. a new square, self-stacking milkbottle design offers cost savings and
increased transport efficiencies.
(continued on page 2)
2 USDECNews | September 2008
U.S. Dairy Industry News
• Emphasizing carbon credit trading
• Supplying green power to
communities by expanding the
use of methane digesters
• Stimulating the development
of low-cost, low-carbon,
consumer-acceptable packaging
• Reducing cooling costs and emissions
associated with refrigeration
The innovative ideas and initiatives
advanced by the Summit participants
will be further refined for possible testing
and evaluation. The goal, according to
Gallagher, will be to field-test several
prototype projects to determine their
real-world viability as ways to reduce
greenhouse gas emissions.
“Now is the time to harness our com-
bined talents to address these issues,”
says Gallagher. “Through the
Sustainability Summit, we were able to
identify common interests and establish
a realistic action plan that has the poten-
tial to transform the industry.”
(continued from cover)
United States (U.S.) dairy exports topped
$2.1 billion in the first half of 2008, up
74% from a year ago, according to U.S.
Department of Agriculture data. Gains
were led by large increases in exports of
milk powder, cheese and butter.
Shipments of nonfat dry milk/skimmed
milk powder (NDM/SMP) topped
234,254 metric tons (MT) in the first half,
a gain of 83% from last year. This made
the U.S. the world’s number one supplier
of NDM/SMP. Major markets were
Mexico, the Philippines and Indonesia,
which accounted for more than half of
the U.S. export sales.
U.S. exporters posted record volumes of
cheese shipments in the first half of this
year. Sales reached 70,977 MT, up 48%
from 2007. Mexico, Korea, Japan and
Canada remain the largest markets for
U.S. cheese, accounting for half the
volume.
Butterfat exports were nearly 50,388 MT
in the first six months of 2008, up seven-
fold from last year (when exports were
just 7,100 MT). Major customers were
Russia, Egypt, Saudi Arabia and
Morocco, which combined took more
than half of the U.S. butterfat exports.
U.S. exports of dry whey declined
sharply in the first half compared with a
year ago. At 88,444 MT, exports were off
34% from the pace of 2007. Volumes
were down in most major markets,
including China, Canada, Mexico and
Japan. However, demand for U.S. whey
protein concentrate (WPC) remained
solid, with volumes increasing 22% over
the 2007 figure to 67,279 MT. More than
half of the shipments went to Mexico
and China.
Among other products, in the first half of
the year, lactose exports were 97,012
MT, down 1%; fluid milk and cream
exports were 24.5 million liters, double
year-ago levels; ice cream exports were
13,522 MT, down 8%; whole milk pow-
der shipments were 19,995 MT, up
247%; and exports of food preparations
were 38,354 MT, up 11%.
Milk Powder, Cheese, Butter Lead U.S. Export Gains
USDEC News is published by the U.S. Dairy Export Council (USDEC) and is designed to provide up to date information about the U.S. dairy industry for the
benefits of our international partners.
USDEC was formed by Dairy Management Inc. in 1995 to enhance the U.S. dairy industry’s ability to serve international markets. USDEC is an independ-
ent non-profit membership organization representing dairy processors, exporters, milk producers and industry suppliers.
USDEC supports international buyers of dairy products by providing information about U.S. suppliers, their products and capabilities. We bring buyers and
sellers together through conferences, trade missions and trade shows. USDEC furnishes application and usage ideas for U.S. dairy ingredients through
seminars, one-on-one consultations and technical publications. We assist with foodservice promotions, menu development and education. We also work
with local authorities to resolve market access issues that ensure reliable delivery for customers and importers. When you work with USDEC and its mem-
bers, you are partnering with companies that manufacture and export more than 85% of all U.S. dairy products.
Copyright © 2008 U.S. Dairy Export Council.
3 USDECNews | September 2008
U.S. Dairy Industry NewsU.S. Dairy Industry News
In the News…New USDEC Members• USDEC welcomes six new companies
to the membership: Agri-Dairy
Products, Inc., a Purchase, New York-
based processor and trader;
California Dairies, Inc., a dairy
cooperative based in Artesia,
California; Erie Foods International,
Inc., a manufacturer and marketer of
dairy ingredients from Erie, Illinois;
Globex International, Inc., a New
York-based trading and exporting firm;
Septoon Inc., a dairy products trader
from Alhambra, California; and
Wisconsin Farm Bureau Federation,
a general farm organization based in
Madison, Wisconsin.
New Plants and Upgrades• Byrne Dairy will build a new corpo-
rate headquarters to accommodate
double-digit growth over the last five
years. The company will expand fluid
milk processing facilities at the current
plant in Syracuse, New York, and shift
corporate offices to a new nearby
location, to be built by 2010.
• Epsilon Industries purchased a for-
mer Sorrento Cheese factory in
Goshen, New York, and plans to
reopen it with an affiliated company,
Fantis Foods. The 5,760-square-
meter plant will start producing feta
cheese in early 2009, and expand into
additional varieties later. The plant has
been closed since 2004.
• Green Meadows Foods’ new cheese
and whey plant in Hull, Iowa, is expect-
ed to be running by November. The
facility will process 330 million liters of
milk and produce 34,000 metric tons
(MT) of cheese annually, as well as
whey protein concentrate (WPC) and
permeate powders in various protein
levels. The cheese will be marketed
through Masters Gallery Foods.
• Hilmar Cheese Co., Hilmar,
California, will expand its Dalhart,
Texas, cheese and whey plant. The
project, due for completion in 2010,
will double capacity to 4.2 million
liters of milk per day.
• Leprino Foods selected Greeley,
Colorado, as the site for its tenth
United States (U.S.) plant. The large
(80,000 square-meters) new mozzarel-
la facility, due to open in 2011, will be
able to handle 3 million liters of milk
per day. Leprino is investing $270 mil-
lion in the project.
• Michigan Milk Producers Association
will expand its Ovid, Michigan, con-
densed milk/butter/powder plant,
boosting capacity from 1.3 million liters
of milk per day to 2.2 million liters. The
$35-million project should be complete
by the end of 2009.
• Nestlé will expand its Anderson,
Indiana, beverage plant just two years
after opening. The company will invest
$200 million over the next two years,
adding 11,000 square-meters and
creating 135 new jobs. The plant
makes Nesquik flavored milk and
Coffee-Mate creamer.
• Protient Inc., St. Paul, Minnesota, will
start production of whey protein isolate
(WPI) at its Juda, Wisconsin, plant
September 1. The facility also makes
WPC 34, WPC 80 and lactose.
• Sorrento Lactalis is adding a 4,645-
square-meter whey processing plant
to its Nampa, Idaho, cheese operation.
The $50-million project is expected to
be complete in the spring of 2010,
adding 40-50 jobs. The expansion will
enable Sorrento Lactalis to increase
cheese production by 50%, to
100,000 MT per year.
• Star Valley Cheese Co. may reopen
its plant in Thayne, Wyoming, which
has been idle for three years. An Idaho
dairyman is trying to purchase the facil-
ity out of bankruptcy holdings. He plans
to start up with mozzarella cheese. The
small plant has the capacity to produce
680 MT of cheese per month.
• Wisconsin Specialty Protein broke
ground on a 1,950-square-meter whey
plant in Reedsburg, Wisconsin, the first
plant in the U.S. to process organic
whey. The $14-million facility, sched-
uled to open in March 2009, will
handle the whey for Wisconsin’s grow-
ing contingent of organic cheese mak-
ers. The company will produce WPC
for organic nutritional supplements,
and also plans to launch its own brand
of organic whey supplements for
women, an under-served demographic
in the whey protein boom.
Moves and Consolidations• Prairie Farms Dairy will cease pro-
duction at its Quincy, Illinois, fluid milk
processing plant. The facility will
remain open as a distribution facility.
• Schreiber Foods will close its
Wisconsin Rapids, Wisconsin,
processed cheese plant at the end of
September and move the business to
its new Carthage, Missouri, facility.
Acquisitions and Mergers• Glanbia plc acquired Optimum
Nutrition Inc., an Aurora, Illinois-
based manufacturer of whey-based
nutritional supplements for the sports
sector. In 2007, Optimum generated
$185 million in sales. The company
has plants in Illinois, South Carolina
and Florida.
• International Ingredient Corp.,
Fenton, Missouri, acquired Land
O’Lakes’ pet food-grade cheese
drying plant in Lake City, Minnesota.
The plant manufactures spray dried
cheese powders for use in the pet
food and animal feeding industries.
New Products• Sargento Foods has introduced
Salad Finishers and Potato Finishers,
chef-inspired blends of Sargento nat-
ural cheese and other toppings, sold
in the produce section of grocery
stores. Salad Finishers varieties
include Chicken Caesar (with parme-
san) and Cranberry Pecan (with
mozzarella and asiago), while Potato
Finishers varieties include Cheddar
Broccoli and Au Gratin.
4 USDECNews | September 2008
Cheese & Manufactured Products
Cheese Inspires New Menu Options
at U.S. Restaurants
Cheese is big business. According to
Mintel Reports, the market for United
States (U.S.) ready-to-eat cheese in 2006
was $13 billion, underscoring just how
important cheese is to consumers’ daily
eating routines. Mintel found that 95% of
adults eat cheese, while 61% of children
eat sliced or string cheese as a snack,
making it the sixth most popular snack
food among children overall.
Cheese consumption is growing at the
retail channel and the trend has
expanded into all types of restaurants.
Consumers more often turn to cheese
when they dine out, relishing it in dishes
from the most traditional American foods
to exotic ethnic ones. The variety of
cheeses diners now find available in
their favorite restaurants is staggering.
From April to June 2008, Mintel Menu
Insights tracked more than 1,300 menu
items across the U.S. that featured
cheese. The top cheeses used includ-
ed parmesan, cheddar and mozzarella;
however, more unique varieties includ-
ing pepper jack and asiago grew by
8% and 5%, respectively, from Q3
2007 to Q2 2008. Cheeseburgers,
pizza and Caesar salad were the three
most common dishes made with
cheese during that period, but even
these classic dishes continue to be
updated with unique cheeses.
At Houlihan’s one can order the Creamy
Gorgonzola Burger topped with balsam-
ic onions, tomatoes, spring lettuce mix
and gorgonzola cheese. California Pizza
Kitchen serves up fontina alongside moz-
zarella on its Wild Mushroom Pizza
made with wild mushroom walnut pesto
and cremini, shiitake, portabello and
white mushrooms. The Caesar salad at
El Torito Mexican Grill received a south-
of-the-border twist with cotija cheese,
diced tomatoes, roasted peppers, crispy
tortilla strips and cilantro-pepper dress-
ing in its Grilled Chicken Mexican
Caesar Salad.
Although cheese is the most popular in
traditional American and Italian dishes,
a diverse array of ethnic cuisines are
also embracing cheese. Greek cuisine
is gaining momentum in the U.S. and
feta cheese plays a leading role in
many of its dishes. In fact, Mintel Menu
Insights reports that feta’s incidence on
U.S. menus has increased 6% from Q3
2007 to Q2 2008 — the fastest growth
among the top 10 most popular food-
service cheeses.
At the Greek restaurant The Black Olive,
for instance, feta appears in a Savory
Bread Pudding made with olive bread,
leeks, portabella mushrooms and arti-
chokes. Other Greek-inspired dishes
pair feta with more traditional American
cheeses. Uno Chicago Grill offers an It’s
All Greek to Me Panini with chicken,
kalamata olives, spinach, pesto, toma-
toes, caramelized onions, mozzarella
and feta. Great Wraps includes both feta
and pepper jack in its Veggie Greek Pita
made with romaine, tomatoes, onions,
olives, sprouts and balsamic vinaigrette.
Americans are also looking to Latin
America for new restaurant experiences.
In particular, the growing Hispanic popu-
lation in the U.S. has invigorated interest
in authentic Mexican dishes. Cheddar
and jack cheeses are the most common
in Mexican dishes, but a number of other
traditional Mexican cheeses are becom-
ing familiar to American diners.
According to Mintel Menu Insights, since
2007 cotija, queso fresco and chihuahua
have been the most popular, especially
in the fine dining sector. Cotija is a salti-
er, aged cheese used to replace
parmesan cheese in Mexican-style food
dishes. Queso fresco and chihauhua are
both soft, white cheeses.
Frontera Grill offers Enchiladas de
Hongos al Chipotle filled with woodland
mushrooms, red potatoes and
The variety of cheeses
diners now find
available in their
favorite restaurants
is staggering.
5 USDECNews | September 2008
caramelized onions and topped with
spicy chipotle sauce and queso fresco.
Queso fresco takes a different form at
Casa Nueva where it is cut into strips,
deep fried and served with a side of
tomato-cilantro sauce.
Quesadillas are made more authentic at
Maya where its Quesadillas Surtidas are
stuffed with zucchini blossoms, salsa
roja, crema fresca and cotija cheese.
Even a simple grilled steak is enlivened
at El Charro Café with chihuahua
cheese and avocado crema.
Cheese has become such a ubiquitous
part of restaurant dining that it even
appears in cuisines that traditionally
have not relied on dairy ingredients.
With the exception of cream cheese in
Japanese sushi rolls and Chinese crab
rangoon, cheese is largely absent from
Asian cuisines. However, a few trailblaz-
ing restaurants are incorporating it in
reinvented favorites.
At Roy’s, a Polynesian-influenced con-
cept, cheese is a flavorful partner to fish
in Spinach and Gorgonzola Crusted
Hawaiian Ono. Cheese also plays a
prominent role in New World Grill’s Thai
Cobb Salad that combines blue cheese
with curried chicken, avocado, egg,
bacon and red Thai curry drizzle.
Cheese is normally associated with
savory dishes, but desserts are also
embracing its flavor and texture.
Tiramisu, cheesecake and cannoli are
the overwhelming cheese-based dessert
favorites, but mascarpone, cream
cheese and ricotta can have other appli-
cations as well.
At Carino’s Italian Grill, Mascarpone
Bread Pudding blends custard-soaked
Tuscan bread with mascarpone cheese
and caramel. Ricotta is reinvented at
Snappy Tomato Pizza, which layers ricot-
ta cheese, real apple chunks and a
sweet cinnamon streusel topping. And
cream cheese goes beyond cheesecake
in Mesa Grill’s Strawberry Rhubarb
Cream Cheese Empanadas.
Dining out is an important way to relax,
indulge oneself and explore new culi-
nary experiences, and cheese can make
all of that possible. From nostalgic com-
fort foods to unexpected ethnic treats,
cheese plays a critical and exciting role
in U.S. foodservice innovation.
Cheese & Manufactured Products
Dining out is an
important way to
relax, indulge oneself
and explore new
culinary experiences,
and cheese can make
all of that possible.
6 USDECNews | September 2008
DMI Showcases New Applications for Dairy
Ingredients at IFT 2008By K.J. Burrington, Wisconsin Center for DairyResearch
More than 15,000 attendees from
over 80 countries came together at the
IFT Annual Meeting & Exposition this
year in New Orleans, Louisiana from
June 28th - July 1st. Hundreds of
exhibitors were on hand, many of
whom were promoting the benefits of
dairy ingredients, including Dairy
Management Inc.™ (DMI)1. DMI is a
regular exhibitor at IFT events and
their theme this year was “Make It
Great with Dairy”. Visitors to the exhibit
booth received a wealth of literature
and information on how dairy ingredi-
ents bring value to food and beverage
products in terms of flavor, functionality
and nutrition.
A number of new food applications
were developed for the 2008 IFT event
to highlight U.S.-made dairy ingredi-
ents. The products reviewed below
were available for tasting in New
Orleans and the feedback on these
products was very favorable.
Safety and Quality of
U.S. Milk Proteins
Dairy ingredients produced in the
United States (U.S.), including milk
protein concentrates (MPC), are the
safest and most extensively tested
ingredients in the world. The U.S. sup-
ply of MPC is growing and this
ingredient is highly competitive on a
global basis. A combined DMI/USDEC
study showed that the functionality and
flavor of U.S. MPC’s were comparable
to those produced around the world.
MPC’s with protein levels of 42, 56, 70,
80 and 90% are available to meet the
needs of many food applications.
A U.S. manufactured MPC with 70%
protein was used in the Chocolate
Pudding Enhanced with Milk Protein
product. This pudding concept scored
well (#2 out of 29 concepts) in a
recent DMI concept screening study
with U.S. consumers. Pudding is a
snack that children like however, most
commercial puddings contain only 1 g
of protein. The addition of MPC 70 to
this instant chocolate pudding provides
5 g of protein per serving (113 g). The
MPC also provides 150 mg of calcium
(15% of the U.S. recommended daily
allowance) in the finished pudding.
Satiety
Satiety, or a feeling of fullness, is an
important consumer benefit for weight
management. In a recent market
research study two-thirds of the U.S.
consumers who were participating stat-
ed that it was extremely important or
very important that a food or beverage
made them feel satisfied. The satiety
benefit was most important to females,
18-34 years old and exercisers,
because both these groups are con-
cerned about weight management.
Research has shown that the consump-
tion of protein promotes satiety.2 A
2008 review published by the National
Dairy Council reported that protein
was found to be more satiating than
carbohydrates or fat in 23 out of 27
short-term studies (up to 24 hours). In
each of the four long-term studies (up
to 6 months), protein had a positive
effect on satiety in diets where 30% of
the calories came from protein. Whey
protein has been shown to promote
satiety in both short- and long-term
studies and work continues to learn
more about the specific effects at vari-
ous dosage levels.
The prototype used to deliver the con-
cept of satiety was a Peach-Flavored
Drink with Whey Protein and Fiber.
The product contains 10 g of whey
protein per 240 ml serving in addition
to 3 g of fiber. It is designed to be a
ready-to-drink product with a fresh
smoothie-like consistency and creamy
mouthfeel. Whey protein isolate (WPI)
is used in the formulation and provides
the highest level of protein per gram, a
clean flavor and excellent solubility at
pH 3.8. The added fiber helps meet a
consumer need for increased fiber in
the daily diet and it also promotes sati-
ety. The drink contains apple juice to
provide natural sweetness and fructose
is added for additional sweetness.
Muscle Recovery
Research has shown that whey protein
helps build and maintain muscle.
Whey protein contains the highest lev-
els of the branched-chain amino acids,
Ingredients
leucine, isoleucine and valine, in com-
parison to other proteins. Leucine has
a unique role in stimulating protein
synthesis in the muscle. A dosage of
only 10 g of whey protein has been
shown to promote muscle recovery
after exercise.3
The prototype used to deliver the mus-
cle recovery benefit was a Whey
Protein Enriched Blackberry
Performance Drink. This beverage is
a refreshing isotonic drink with the
added benefit of 10 g of whey protein
per 240 ml for muscle recovery.
Isotonic drinks are already popular in
the U.S. and are used by both athletes
and non-athletes. They provide the
electrolytes potassium and sodium and
water to keep the body hydrated.
Isotonics are clear, low-pH drinks so it
is necessary to use WPI to maintain the
clarity of the drink and have good solu-
bility at pH 3.2. The DMI whey protein
performance drink has less sugar than
most isotonic drinks to keep the calorie
(70 kcal) and carbohydrate (8 g) con-
tent low.
Cheesy Taste and
Convenience
Good-tasting frozen breakfast items
that are quick to heat up, give con-
sumers the opportunity to enjoy a hot
breakfast anytime they choose. Cheese
adds flavor, performance and value to
a hot breakfast item. Sandwiches, hash
browns and even breakfast burritos are
popular for breakfast at quick-serve
restaurants.
A Hash Brown Casserole with Aged
Cheddar product was featured as a
tasty, convenient way to deliver a hot
breakfast. When cooked in a
microwave, this cheesy breakfast com-
bines the full flavor and creaminess of
aged cheddar together with the crisp-
ness of baked hash browns. This
product scored #5 out of 29 in the DMI
concept screening study mentioned
earlier as a quick and easy breakfast.
The study participants commented that
the cheese added extra appeal to this
product. An over-whelming 95% of U.S.
consumers agreed that they “love the
taste of cheese” and 86% said that
“cheese really makes a difference when
it is part of the foods we eat”.
Cheese provides valuable protein and
minerals, such as calcium, to formulated
foods. Cheese is a versatile ingredient
and can be tailored to meet the specific
requirements of an application, such
as flavor and texture. For example,
processed cheese can incorporate sever-
al dairy ingredients, such as sweet whey,
WPC and MPC, into the product formu-
lation to help obtain the desired melt,
stretch and viscosity levels. U.S. cheeses
are available in full-fat, reduced-fat, low-
fat and fat-free varieties.
Permissible Indulgence
Consumers are more aware of the
importance of good nutrition and are
trying to eat healthier. In many cases
however, consumers do not want to
completely give up candy and sweets.
An indulgent treat with added nutrition
had the highest purchase intent scores
in the 2007 DMI concept screen. The
product developed to meet this con-
sumer need was a Chocolate Truffle
with Fortified Milky Center. In this
product smooth milk chocolate covers
a creamy center containing U.S. anhy-
drous milk fat and U.S. whole milk
powder, plus the addition of 300 mg of
calcium and added Vitamin D. This is
truly an indulgent way to include
important nutrients in your diet.
No matter what consumer need you are
trying to meet, U.S. dairy ingredients
can be part of the solution for your new
products. The flavor, function and
nutrition of dairy ingredients add value
to products for all age groups and cul-
tures.
Product application sheets for all of the
products showcased by DMI at the
2008 IFT exposition are available at
www.innovatewithdairy.com.
Ingredients
References:1. IFT2008 Post-show Article,
http://www.ift.org/cms/?pid=1001836
2. National Dairy Council, Protein, DairyProtein and Whey: Effects on Satiety andFood Intake Regulation, November 2007.
3. J.E. Tang et al, Canadian Journal of Applied
Physiology, Nutrition, and Metabolism,
November 2007.
7 USDECNews | September 2008
Dairy Proteins for Optimal HealthProtein is an essential part of the daily
diet. Historically, the dietary recommen-
dations for protein have been based on
minimal protein needs and disease pre-
vention. More recently, however, the
discussion has changed to the amount of
protein needed for optimal health.
In May 2007 a group of 52 international-
ly recognized protein experts gathered
in Charleston, South Carolina to discuss
the factors of most importance to the
dietary guidelines for protein in the
United States (U.S.) and Europe. The
experts reviewed the current scientific
data regarding the role of dietary pro-
tein in optimal health and debated
minimum versus optimum protein
requirements. The group concluded that
there was a benefit to increasing the
intake of protein in excess of the current
recommended daily allowance (RDA) to
help reduce the risk of certain health
conditions including obesity, sarcopenia,
osteoporosis, cardiovascular disease
(CVD) and type 2 diabetes (T2D). The
key messages from the Protein Summit
are summarized below.
Protein Intake
Protein is essential for human life and is
present in muscle, bones, hair, heart, teeth,
brain, blood, skin and hormones. The cur-
rent RDA for protein in the U.S. is 0.8 g/kg
body weight. At the protein summit, the
experts agreed that the current U.S. RDA
for protein may not be an acceptable mini-
mum level for optimal health, especially in
active adults and the elderly.
It is assumed that people in the U.S. con-
sume too much protein. According to
National Health and Nutrition Examination
Surveys (NHANES) this is generally true.
The data does show however, that a signif-
icant number of people in certain age
groups, including adolescent females and
older women, do not get enough protein.
Protein Quality
Protein quality is important in terms of
achieving and maintaining optimal health.
Protein sources vary greatly in quality and
dairy products consistently rank high in
quality as they contain a high level of
essential amino acids (EAAs) which are a
necessary part of the daily diet to support
growth. Proteins with all the EAAs are
called “complete proteins” and dairy
products are naturally complete proteins.
Leucine is an especially important EAA
for muscle protein synthesis. According
to Dr. Donald Layman, a protein expert
and speaker at the recent IFT Annual
Meeting, muscle protein synthesis can
be optimized by consuming at least 18 g
of protein three times a day. The protein
consumed at each of three daily meals
should contain a minimum of 2.5 g of
leucine. Whey protein isolate contains
14 g of leucine and milk protein has 10
g of leucine per 100 grams of protein.
The current internationally approved
method for measuring protein quality is
the protein-digestibility corrected amino
acid score, or PDCAAS. This method is
based on the amino acid requirements
for humans and protein digestibility. The
PDCAAS can never exceed 100%, or a
value of 1.0, as values higher than 1.0
must be rounded down to 1.0. The
PDCAAS is currently under criticism for
having limited value in comparing indi-
vidual proteins and for undervaluing
higher quality proteins, like dairy prod-
ucts. For example, whey protein has an
actual protein-digestibility amino acid
score of 1.14 and soy protein has an
actual score of 0.99. When these values
are rounded off or “corrected” both pro-
teins have an equal score of 1.00 which
can be misleading.
Weight Management
and Satiety
Obesity is a growing health concern
worldwide and it is responsible for rising
health care costs related to hyperten-
sion, T2D, heart disease, stroke and
cancer. There is a consensus among the
experts that high-protein weight loss
diets are associated with decreased fat
and carbohydrate intake and fat loss.
They also help maintain or increase lean
body mass. This in turn helps improve
body composition and the ability to
maintain weight loss over time.
There are several reasons why high-pro-
tein weight loss diets are effective. One is
that protein has a greater satiety effect
than carbohydrates and fat and may help
decrease overall calorie consumption.
High-protein diets are also associated
with an in increase in the metabolic rate,
or the amount of energy used by the
body during times of reduced activity.
Sarcopenia
Aging is often associated with a reduc-
tion in appetite and the desire to eat
high-protein foods often decreases.
Insufficient protein intake is one of the
contributing factors for sacropenia, or
age-related muscle loss. This serious
condition results in frailty, disease and a
Nutrition
8 USDECNews | September 2008
reduced quality of life in elderly people
in all parts of the world.
Approximately 30% of men and women
over 60 years of age are affected by chron-
ic muscle loss and in many cases these
individuals consume inadequate amounts
of protein. According to the 2005-2006
NHANES survey, the protein intake of
women dropped by over 8% from their 40’s
to their 50’s and intake levels continued to
decrease over the next two decades.
Another study of a group of 2,600 older
men and women found that over 25% of
the participants did not eat enough protein
to maintain muscle mass during aging.
Experts recommend that seniors, espe-
cially women, get at least 25% more
protein than the current RDA. Dairy
products, including yogurt and whey
protein, are easily digested and can be
combined with a number of foods to
help increase protein in the diet.
Bone Health
Bone is made up of approximately 50%
protein by volume. A daily supply of pro-
tein is needed for bone maintenance
and to help prevent bone fractures.
Similar to muscle mass, bone mass is lost
during the aging process and optimal
bone health often requires both protein
and calcium intakes above the current
recommended guidelines. Studies have
found that there is a positive and benefi-
cial correlation between protein intake
and bone density when higher levels of
protein are supplemented with calcium
and vitamin D. Milk and other dairy
products are calcium-dense foods with
approximately 300 mg of calcium per
serving (i.e. 240 ml of milk, 170 g of
yogurt and 175 g of cheese).
Weight loss is a great accomplishment
for many individuals but it may lead to
bone loss, especially in the elderly.
Higher protein diets (more than 70
g/day) have been shown to help prevent
bone loss during dieting.
Heart Disease
The World Health Organization estimates
that almost 30% of the deaths in the
world each year are due to cardiovascu-
lar disease, or CVD. High-protein weight
loss diets have been shown to increase
fat loss and reduce the risk of CVD. In
some studies serum triglyceride levels, a
risk factor of CVD, were lowered by as
much as 30-55% when carbohydrate
and fat were replaced with protein.
Elevated blood pressure is a major CVD
risk factor and numerous studies show a
strong association between increased
protein intake and reduced blood pres-
sure. One recently published study in
the British Journal of Nutrition looked at
the relationship between low-fat dairy
intake and blood pressure in adults ages
55-80 with multiple risk factors for CVD.
The results showed the consumption of
low-fat dairy products (three to four daily
servings) was associated with lower sys-
tolic blood pressure.
Hydrolyzed whey protein, a highly
digestible dairy protein, has also been
shown in studies to reduce elevated
blood pressure and in some cases, a
beneficial reduction in cholesterol (total
and low-density lipoproteins) was also
observed. Additional studies are ongoing
to determine the full potential of low-fat
dairy products, including whey protein,
in the battle against heart disease.
Diabetes
In the year 2000 there were an estimat-
ed 170 million cases of diabetes in the
world. By 2030 the number is expected
to increase to over 366 million cases, the
majority of which will be T2D.
As with heart disease, obesity is one of
the key factors driving the increase in
T2D. High-protein/low-carbohydrate
diets have been shown to be effective in
the management of T2D, especially
when body weight and caloric intake are
controlled. Reduced or fat-free cheese
and yogurt and whey protein snacks and
meal replacements are all excellent pro-
tein choices for diabetics.
In summary, the evidence presented at the
2007 Protein Summit supports the consen-
sus of the experts that there are potential
benefits to increasing the protein require-
ments for adults, up to 3-4 times the
current minimum requirement. Safety
should not be a concern as studies have
shown that healthy adults can consume
up to 35% of their total daily calories in
protein without any negative side-effects.
Dairy products provide a variety of
options for consumers to increase their
intake of high quality protein. One of the
next steps will be to communicate this
message to consumers, health profes-
sionals and nutritionists and re-educate
them on the importance of consuming
adequate amounts of high quality, pro-
tein-rich dairy products every day.
Nutrition
Country Year 2000 Year 2030 % Increase
Argentina 1.43 2.46 72%
Brazil 4.55 11.31 148%
China 20.76 42.32 104%
Egypt 2.62 6.73 156%
Japan 6.77 8.91 32%
Korea 1.86 3.38 82%
Lebanon 0.15 0.38 159%
Mexico 2.18 6.13 181%
U.S. 17.70 30.31 71%
Number of People with Diabetes (in Millions)
Sourc
e:
Worl
d H
ea
lth O
rga
niz
ation
Reference:American Journal of Clinical Nutrition,
87(supplement):1551S-1583S, 2008.
9 USDECNews | September 2008
10 USDECNews | September 2008
Gerber California, Inc.Established as a trading company in
1987, Gerber California, Inc. successful-
ly continues to expand its global reach.
Based in San Diego, California, Gerber
California provides international cus-
tomers with high quality dairy products
and ingredients from numerous leading
U.S. dairy manufacturers.
With total sales reaching $100 million in
2007, including $40 million in U.S. dairy
export sales, Gerber California’s dairy
export business grew 50% from 2006 to
2007. Export sales make up 90% of
Gerber California's total annual sales
and currently represent 12,000 MT
(24 million pounds) of U.S.-sourced
dairy products.
Gerber California’s export business is
supported by its subsidiary office in
Mexico. It also has a network of dairy
business offices in the South America,
Southeast Asia and Oceania regions. As
an associated member of Gerber
Goldschmidt Group (GGG), a multi-
office international trading firm that has
been in business for 85 years, Gerber
California has direct access to additional
resources and worldwide market insight.
The trading company exports U.S. dairy
products and ingredients to countries
and regions worldwide, including
Mexico, the Caribbean, Chile, Peru,
Brazil, Australia, New Zealand, Korea,
Japan, Taiwan, China, Hong Kong,
Indonesia, Thailand, Malaysia,
Singapore, the Philippines, Morocco,
Tunisia, Russia and the European Union.
Gerber California specializes in provid-
ing value-added solutions for producers
and buyers. It has extensive experience
in the export of U.S.-sourced products
including milk protein concentrates
(MPCs), skimmed milk powder blends
and butterfat blends as well as commod-
ity products such as skimmed milk
powder (SMP), whey powders, whey
protein concentrate (WPC), casein, lac-
tose, cheese and butter.
“Gerber's emphasis is to develop long-
term, mutually-beneficial partnership
relationships with both suppliers and
customers. Gerber California assists
global customers in navigating the ever-
increasing complexity of today’s
marketplace and assures the ultimate in
quality, service and price,” says Saul
Rosenberg, Gerber California’s chief
executive officer.
A comprehensive program of dairy foods
and ingredients export support services
is available through Gerber California,
including U.S. dairy product procure-
ment, international finance, logistics and
warehousing, technical support and
product customization. Gerber
California’s team of dedicated specialists
is readily available to help export cus-
tomers manage international trade
regulations, he adds.
“We provide a total package including
logistics, correct documentation and
credit insurance to ensure there are no
problems with customs at the country of
destination and that the supplying pro-
ducer is paid in a timely manner,”
Rosenberg says.
The company prefers to work with pro-
ducers to develop a transparent export
strategy to suit products, volumes and
markets where the producers may have
advantages such as Free Trade
Agreement benefits or lower freight
costs.
“Gerber is a flexible company and can
normally adapt to the specific require-
ments of both suppliers or customers and
find solutions to any potential challenges
that may arise,” Rosenberg says. “With a
team of highly experienced trading and
logistics personnel with extensive global
experience in dairy trade business in key
markets, Gerber has been successful in
partnering with producers for more than
20 years to develop prosperous business
opportunities.”
Product Line
Nonfat Dry Milk Powder/Skimmed
Milk Powder – Low-heat, medium-heat
and high-heat processed powders.
Applications include: recombined milk,
dairy blends, confectionery products,
cheese processing, cultured dairy prod-
ucts and bakery products.
Whole Milk Powder – Applications
include recombining, processed dairy
products, confectionery products and
social feeding programs.
Milk Protein Concentrates – GoldPro
56 and 70, GoldPro 40-MH and
GoldPro 40-LH contain 40% protein in
low-heat and medium-heat processed
varieties. Applications include uses such
as cheese and milk extenders (for pro-
tein), dairy blends and recombining.
Buttermilk Powder – Applications
include use as a UHT/condensed milk
replacer in frozen desserts.
Sweet Dairy Whey Powder and Whey
Protein Concentrates – Applications
include use as a skimmed milk replacer
in various food and feed products.
Lactose – Available in course, medium
and fine grinds.
Cheese – Cheddar, gouda, monterey
jack and mozzarella varieties.
Contact Information
Website: www.gerbercal.com
Contact: Saul Rosenberg, CEO,
Gerber California Inc.,
San Diego, California, USA
Email: [email protected]
Meet Our Members
11 USDECNews | September 2008
Hoogwegt U.S., Inc.Founded in 1989, Hoogwegt U.S., Inc.
has grown to become a leading interna-
tional U.S.-sourced dairy product and
ingredient supplier. Based in Libertyville,
Illinois, Hoogwegt U.S. is the North
American subsidiary of the Hoogwegt
Group, Arnhem, The Netherlands.
“Partnering with an international compa-
ny like Hoogwegt U.S. Inc is important to
our customers’ success due to our lead-
ership in global trade and ability to
forecast pricing,” says Dalyn Dye,
Hoogwegt U.S. president and CEO.
In 2007, Hoogwegt U.S. Inc. exported
approximately 100,000 MT of U.S.
dairy products and traded a total of
200,000 MT of U.S. dairy products for
the year. The company supplies mar-
kets worldwide.
The core mission of Hoogwegt U.S. is to
provide customers and suppliers with
integrity, committed relationships, value
and service. Market conditions in the
global dairy industry are evaluated on a
daily basis and support is provided by a
multi-lingual logistics team. “We help cus-
tomers manage costs and maximize
returns through our product management,
marketing and finance arrangements;
customer success ensures our success,”
says Dye.
“Hoogwegt U.S. puts customer relation-
ships first,” Dye continues. He notes that
the company provides customers with
supply chain programs, hedging options
and quality products, all the while pro-
viding complete logistic services and
solutions.
Product Partners
U.S. suppliers and partners furnish
Hoogwegt U.S. with commodity dairy
products, branded specialty ingredients
and cheese products for global export.
For example, Hoogwegt U.S. formed a
joint venture with Bluegrass Dairy & Food
LLC, in 2003.
“Hoogwegt U.S. is proud to serve as the
marketing arm for our partner, Bluegrass
Dairy & Food. We provide new product
development, flexibility and the highest
service to meet all customer needs,” says
Ned Larson, Hoogwegt U.S. commercial
vice president of specialty ingredients.
Based in Kentucky, Bluegrass Dairy &
Food operations create spray-dried
ingredients with varying functionalities.
The facility includes pilot dryers, analyti-
cal labs and a test kitchen.
Hoogwegt U.S. also distributes and
exports cheeses for numerous leading
U.S. manufacturers and traders, includ-
ing its privately-held JV with Good Home
Foods, LLC. Based in Green Bay,
Wisconsin, Good Home Foods trades
cheese products in blends, bricks and
bulk forms, each suitable for multiple
applications.
Product Line
Hoogwegt U.S. offers export customers
U.S.-sourced butterfat products, cheeses,
milk powders, whey powders and cus-
tom blends.
Butter Products – Flavor rich (enzyme
modified) butter, churned butter (80%
and 82% minimum fat), butter powder
and buttermilk powder.
Cheese – Cheddar, mozzarella, mon-
terey jack, colby, Italian/pasta filata, blue
cheese, swiss, processed cheese and
Hispanic/Latino specialty cheeses in
blends, bricks and bulk; kosher/organic
versions available.
Cheese Powders – Cheddar, American,
blue, parmesan, romano and mozzarella.
Cream Powders – Sweet cream, sour
cream and cream cheese.
Dairy Specialty Ingredients – Whip
topping base, baker’s cheese powder,
yogurt powder and custom blends.
Fat Products – Butter, AMF and confec-
tionery blends.
Lactose Powders – 100 mesh, 200
mesh, 80 mesh and edible lactose
(unground). Packaged in 25 kg heat-
sealed, multi-wall kraft paper bags with
a polyethylene bag liner.
Milk Powders – Nonfat dry milk (NDM),
skimmed milk powder (SMP), whole milk
powder (WMP), buttermilk powder,
casein (acid and rennet) and caseinates.
Whey Ingredients – Whey powders,
sweet whey powder, acid whey powder,
deproteinized whey powder (permeate),
demineralized whey powder, delactosed
whey powder, whey protein concentrates
(WPC 34 and WPC 80), whey protein
isolate (WPI) and whey protein
hydrolysates.
Milk Protein Ingredients – Milk protein
concentrates (MPC 56, MPC 70 and
MPC 80) and milk protein isolates (MPI).
Contact Information
Website: www.hoogwegtus.com
Office Location: Libertyville, Illinois, USA
Contact: Staszek Chlapowski,
Commercial Director of International
Markets (Japan, Korea, Europe)
Email: [email protected]
Contact: Leah Suellentrop,
Export Manager
(Southeast Asia, China, Turkey, Russia)
Email: [email protected]
Contact: Luigi Trotta,
Export Manager
(Central and South America, Caribbean)
Email: [email protected]
Contact: Adnan Mikati,
Export Manager
(Middle East, North Africa)
Email: [email protected]
Contact: Ned Larson,
Commercial V.P.,
Specialty Dairy Ingredients
Email: [email protected]
Meet Our Members
12 USDECNews | September 2008
MCT Dairies, Inc.MCT Dairies, Inc. is a supplier of quality
cheeses and dairy ingredients to both
international and domestic markets. The
Millburn, New Jersey-based dairy distrib-
utor and manufacturer was established
more than 25 years ago.
MCT Dairies provides an extensive line
of U.S. dairy products to over 15 coun-
tries in Asia, the Middle East, Latin
America and Europe. The company is
building on its 10-plus years of dairy
export experience with ongoing growth
in Latin American and Asian markets,
including Korea and China, according
to Bruce Fleischhacker, business devel-
opment manager.
Positioned as a single-source supplier,
MCT Dairies offers customer service and
technical support “that responds quickly
to the most demanding requirements,”
Fleischhacker says. The sales and sourc-
ing staff at MCT Dairies has more than
100 years of combined dairy experience
with cheese manufacturing, natural
cheese, dairy by-products, milk proteins,
analog cheese, reduced/low-fat cheese,
processed cheese, butterfat and other
dairy applications.
A wide range of U.S.-sourced cheeses
and dairy ingredients are available to
MCT Dairies’ export customers. Products
are exported for industrial, dairy pro-
cessing, manufacturing, cut-and-wrap
and food service applications. Available
in traditional as well as organic and
kosher-certified versions, the line
includes natural American and Italian-
style cheeses, butter products, dairy
blends and milk powders.
MCT Dairies operations include a con-
tract packaging operation, Bella Pak.
Based in Appleton, Wisconsin, the Bella
Pak subsidiary grates, dries and pack-
ages parmesan, romano and asiago
products for export.
“Our goal is to supply customers with the
highest quality specialized formulations
and products available, and at competi-
tive prices,” says Fleischhacker. He notes
the products exported by MCT Dairies
are sourced and delivered with a goal to
meet and exceed customer expectations.
“MCT has become the outsourcing
export, logistics and documents depart-
ment for numerous U.S.-based
manufacturers and marketers,”
Fleischhacker continues. As a result,
dairy suppliers are able to focus on
manufacturing and product quality while
MCT handles export sales, documenta-
tion and distribution.
The firm’s in-depth understanding of
world dairy markets, products and pric-
ing allows it to assist customers in
product development and alternative
ingredient sourcing. MCT Dairies also
helps customers control cost through
inventory management and its ability to
hedge purchases on the dairy futures
market. “We are adept market econo-
mists, helping to assure supply and price
for our customers,” Fleischhacker says.
(For more information on dairy futures
see the June 2008 issue of USDECNews).
“There has been a paradigm shift in the
global food marketplace. We are seeing
a major convergence between world
dairy product prices and the U.S. dairy
markets,” says Ken Meyers, president of
MCT Dairies. “In the months to come we
expect the U.S. to be the price setter for
global dairy markets.”
Cheese & Butter Products
MCT Dairies provides bulk, shredded,
sliced, diced and grated cheeses along
with cheese in consumer packaging.
Cheeses in granular and powdered
forms are also available.
Key U.S. cheese varieties exported by
MCT Dairies include natural American
cheeses (cheddar, colby, monterey jack),
Italian-style hard grating cheeses
(parmesan, romano and asiago) and
processed cheeses. The company also
offers U.S.-manufactured cream cheese,
and blue, colby, edam, feta, gouda,
gruyere and mozzarella cheeses.
U.S.-sourced butter products for export by
MCT Dairies include anhydrous milkfat,
bulk butter, butter blends, concentrated
milkfat, confectionery blends and con-
sumer-sized packaged butter.
Dairy Ingredient Products
MCT Dairies offers standard and cus-
tomized dairy ingredients to suit all types
of applications and requirements.
Depending on customer needs, product
characteristics may include a specific
flavor profile, texture, shelf stability
requirement, or an associated cost sav-
ings.
Leading manufacturers provide the MCT
Dairies’ export line of agglomerated,
instantized, spray and roller dried milk
products made from U.S. dairy products.
Products include buttermilk powder,
casein/caseinate, cream powders, milk
protein concentrate (MPC), skimmed milk
powder (SMP) and whole milk powder
(WMP). U.S.-sourced whey and whey
products include lactose, reduced lactose
whey, reduced minerals whey, sweet whey
and whey protein concentrate (WPC).
The export firm also supplies specialty
ingredients formulated with U.S. dairy
products, including confectionery
blends, dry dairy blends (milk, whey and
other ingredients), ice cream mix, milk
replacer, non-dairy creamers, nutraceu-
tical blends and nutritional mixes.
Contact Information
MCT Dairies, Inc.
Website: www.mctdairies.com
Contact: Bruce Fleischhacker,
Business Development Manager,
MCT Dairies, Inc.,
Millburn, New Jersey, USA
Email: [email protected]
Meet Our Members