vilsack visits wde; effects of expired farm bill are debated · volume 32 october 5, 2012 number 37...

16
Volume 32 October 5, 2012 Number 37 U.S. cheese production up 2.6 percent from year ago WASHINGTON — Total U.S. cheese production, excluding cottage cheese, was 884.4 million pounds in August, up 2.6 percent from August 2011’s 862.0 million pounds, according to preliminary data released Wednesday by USDA’s National Agricultural Statistics Service (NASS). (All figures are rounded. Please see CMN’s Dairy Production chart on page 13.) August cheese production was up 0.5 percent from July 2012’s 880.1 million pounds, NASS further reports. Mozzarella was the most-produced cheese in the United States in August, totaling 284.9 million pounds. This was a decline of 0.3 percent vs. a year earlier. Despite the decline in Mozzarella production, total Italian cheese production, of which Mozzarella is the largest component, was up 1.9 percent from a year earlier to 370.4 million pounds. World Dairy Expo auction raises $34,522 in 10th year MADISON, Wis. The 10th annual World Dairy Expo Championship Dairy Product Contest auction — sponsored by the Wisconsin Dairy Products Association (WDPA) and held here Tuesday during the World Dairy Expo — raised $34,522. “This year’s contest was, once again, extremely successful,” says Brad Legreid, executive director, WDPA. “We had a record number of entries (738), more product classes and greater overall participation than ever before.” Legreid notes that the contest also had its first international entries this year. “Dairy manufacturers have embraced this competition and seen the many benefits accrued through participation,” he says. “We started this contest 10 years ago to promote the entire dairy industry. Due to this contest, manufacturers of all dairy products have myriad promotional and marketing opportunities.” A portion of the auction proceeds will be used to fund the Dr. Robert L. Bradley Scholarship and WDPA Scholarship, which will be awarded annually to deserving students pursuing careers in the dairy industry. Proceeds also will be used to defray contest expenses. Product donations were made to the Madison Area Technical College Culinary Arts School, University of Wisconsin Food Science Department, the Ronald McDonald House and Second Harvest Food Bank. Cheese Market News sponsors the contest’s Grand Champion Cheese and Butter Trophy, which this year was awarded to Adam Knapp and Jaimie Hoffman, both licensed cheesemakers with Woolwich Dairy, Lancaster, Wis., for their award-winning Wild Blueberry Vanilla Goat Cheese. The 12 pounds of flavored goat cheese Gouda were purchased by Wisconsin Aging and Grading Cheese (WAG) Inc., Little Chute, Wis., for $85 per pound, or a total of $1,020. By Alyssa Sowerwine MADISON, Wis. — As the World Dairy Expo kicked off this week in Madison, Wis., U.S. Agriculture Secretary Tom Vilsack addressed a room of attendees Tuesday morning on the prospects for the dairy industry over the next several months following the Sept. 30 expiration of the 2008 Farm Bill. With the expiration of the current farm bill, and pas- sage of a new bill stalled in Congress, dairy producers will face “considerable challenges,” Vilsack notes. While the full Senate as well as the House Agriculture Committee were able to pass versions of the 2012 Farm Bill Vilsack visits WDE; effects of expired farm bill are debated earlier this year, the full House did not take action on the bill before adjourning until after the Nov. 6 elections. Congress is scheduled to return for a lame- duck session starting Nov. 13. “I believe the reason it wasn’t done is because they didn’t want to have a full conversation about the depth of reductions that would be included,” Vilsack says. While expiration of the farm bill has little or no effect on some programs, it has terminated other programs, which could adversely affect many farmers and ranchers, as well as ongoing market development and con- servation efforts, Vilsack says. One example is the expiration of the Milk Income Loss Con- tract Program (MILC), which compensates dairy producers when domestic milk prices fall below a certain specified level. While discussion continues on the negative effects of the expired bill, some dairy and agriculture groups say the fears are being overplayed. “Recent news coverage about the expiration of the cur- rent farm bill may be creating confusion about what will hap- pen to agriculture, particularly dairy, programs in the absence of a new farm bill,” says the Midwest Dairy Foods Associa- tion (MDFA). MDFA notes that some news coverage has noted consumer milk prices could double or that consumers will soon be paying $6 for a gallon of milk in the grocery store. “While these consequences may be technically possible if Congress takes no action before Jan. 1, it is extremely unlikely any of them will ever happen,” MDFA says. MDFA notes that it feels Congress should not be rushed into passing a farm bill, and it opposes government limits on milk production in times of low profit margins. Such a program is included in the Senate ver- sion of farm bill legislation. Both MDFA and the Interna- tional Dairy Foods Association (IDFA) this week noted a recent report by Andrew M. Novakovic, E. V. Baker Professor of Agricultural Economics at Cornell University, that addresses the unlikelihood of skyrocketing milk prices in the absence of farm policy. “One of the few bets I’d make is that we won’t see actions taken that seriously implements the provisions of the permanent agricultural support law (enacted in 1949), including a $38 support price for milk,” Novakovic says. In his report, Novakovic notes that the current price support program does not expire until Dec. 31, and there is no danger of government programs causing milk prices to double before then. This week at World Dairy Expo, the Wisconsin Dairy Busi- ness Association (DBA) voiced support for the Goodlatte/Scott amendment to the farm bill that would remove a controversial supply management program while retaining a margin insur- ance safety net for dairy farmers. “Dairy farmers in Wisconsin could have been penalized up to $18,000 had this program been in effect now,” says Jerry Meiss- ner, president of the board of directors for DBA. “This is bad news for Wisconsin.” The National Milk Producers Federation (NMPF), which sup- ports the Dairy Margin Stabiliza- tion Program (DMSP) included in the Senate version of the farm bill, this week spoke with Cheese Mar- ket News and expressed concern with various claims surrounding DMSP and the Goodlatte/Scott amendment. NMPF President and CEO Jerry Kozak and Jim Tilli- son, chief operating officer Raw milk legal issues proceed across the U.S. Turn to FARM BILL, page 11 D Turn to NASS, page 13 D CHEYENNE, Wyo. Wyoming is close to al- lowing the distribution of raw milk to consumers through legalizing herd shares, while farmers in other states are facing or recently concluded legal cases related to raw milk distribution. The Wyoming Depart- ment of Agriculture is in the process of changing Turn to RAW, page 9 D Turn to AUCTION, page 15 D Scan this code for breaking news and the latest markets! A INSIDE ) Guest column: ‘How long can U.S. cheese prices stay this high?’ For details, see page 4. ) Mondelez completes spin-off of Kraft Foods. For details, see page 6. ) DBIC consultants launch Profitable Growth Network. For details, see page 7. ) Three charged with cheese smuggling in Canada. For details, see page 12. Reprinted with permission from the Oct. 5, 2012, edition of CHEESE MARKET NEWS ® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

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Page 1: Vilsack visits WDE; effects of expired farm bill are debated · Volume 32 October 5, 2012 Number 37 U.S. cheese production up 2.6 percent from year ago WASHINGTON — Total U.S. cheese

Volume 32 October 5, 2012 Number 37

U.S. cheese production up 2.6 percent from year agoWASHINGTON — Total U.S. cheese production, excluding cottage cheese, was 884.4 million pounds in August, up 2.6 percent from August 2011’s 862.0 million pounds, according to preliminary data released Wednesday by USDA’s National Agricultural Statistics Service (NASS). (All fi gures are rounded. Please see CMN’s Dairy Production chart on page 13.)

August cheese production was up 0.5 percent from July 2012’s 880.1 million pounds, NASS further reports.

Mozzarella was the most-produced cheese in the United States in August, totaling 284.9 million pounds. This was a decline of 0.3 percent vs. a year earlier. Despite the decline in Mozzarella production, total Italian cheese production, of which Mozzarella is the largest component, was up 1.9 percent from a year earlier to 370.4 million pounds.

World Dairy Expo auction raises $34,522 in 10th yearMADISON, Wis. — The 10th annual World Dairy Expo Championship Dairy Product Contest auction — sponsored by the Wisconsin Dairy Products Association (WDPA) and held here Tuesday during the World Dairy Expo — raised $34,522.

“This year’s contest was, once again, extremely successful,” says Brad Legreid, executive director, WDPA. “We had a record number of entries (738), more product classes and greater overall participation than ever before.”

Legreid notes that the contest also had its fi rst international entries this year.

“Dairy manufacturers have embraced this competition and seen the many benefi ts accrued through participation,” he says. “We started this contest 10 years ago to promote the entire dairy industry. Due to this contest, manufacturers of all dairy products have myriad promotional and marketing opportunities.”

A portion of the auction proceeds will be used to fund the Dr. Robert L. Bradley Scholarship and WDPA Scholarship, which will be awarded annually to deserving students pursuing careers in the dairy industry. Proceeds also will be used to defray contest expenses.

Product donations were made to the Madison Area Technical College Culinary Arts School, University of Wisconsin Food Science Department, the Ronald McDonald House and Second Harvest Food Bank.

Cheese Market News sponsors the contest’s Grand Champion Cheese and Butter Trophy, which this year was awarded to Adam Knapp and Jaimie Hoffman, both licensed cheesemakers with Woolwich Dairy, Lancaster, Wis., for their award-winning Wild Blueberry Vanilla Goat Cheese.

The 12 pounds of fl avored goat cheese Gouda were purchased by Wisconsin Aging and Grading Cheese (WAG) Inc., Little Chute, Wis., for $85 per pound, or a total of $1,020.

By Alyssa Sowerwine

MADISON, Wis. — As the World Dairy Expo kicked off this week in Madison, Wis., U.S. Agriculture Secretary Tom Vilsack addressed a room of attendees Tuesday morning on the prospects for the dairy industry over the next several months following the Sept. 30 expiration of the 2008 Farm Bill.

With the expiration of the current farm bill, and pas-sage of a new bill stalled in Congress, dairy producers will face “considerable challenges,” Vilsack notes.

While the full Senate as well as the House Agriculture Committee were able to pass versions of the 2012 Farm Bill

Vilsack visits WDE; effects of expired farm bill are debated

earlier this year, the full House did not take action on the bill before adjourning until after the Nov. 6 elections. Congress is scheduled to return for a lame-duck session starting Nov. 13.

“I believe the reason it wasn’t done is because they didn’t want to have a full conversation about the depth of reductions that would be included,” Vilsack says.

While expiration of the farm bill has little or no effect on some programs, it has terminated other programs, which could adversely affect many farmers and ranchers, as well as ongoing market development and con-servation efforts, Vilsack says. One example is the expiration of the Milk Income Loss Con-tract Program (MILC), which compensates dairy producers when domestic milk prices fall below a certain specifi ed level.

While discussion continues on the negative effects of the expired bill, some dairy and agriculture groups say the fears are being overplayed.

“Recent news coverage about the expiration of the cur-rent farm bill may be creating confusion about what will hap-pen to agriculture, particularly dairy, programs in the absence of a new farm bill,” says the

Midwest Dairy Foods Associa-tion (MDFA).

MDFA notes that some news coverage has noted consumer milk prices could double or that consumers will soon be paying $6 for a gallon of milk in the grocery store.

“While these consequences may be technically possible if Congress takes no action before Jan. 1, it is extremely unlikely any of them will ever happen,” MDFA says.

MDFA notes that it feels Congress should not be rushed into passing a farm bill, and it opposes government limits on milk production in times of low profi t margins. Such a program is included in the Senate ver-sion of farm bill legislation.

Both MDFA and the Interna-tional Dairy Foods Association (IDFA) this week noted a recent report by Andrew M. Novakovic, E. V. Baker Professor of Agricultural Economics at Cornell University, that addresses the unlikelihood of skyrocketing milk prices in the absence of farm policy.

“One of the few bets I’d make is that we won’t see actions taken that seriously implements the provisions of the permanent agricultural support law (enacted in 1949), including a $38 support price

for milk,” Novakovic says.In his report, Novakovic

notes that the current price support program does not expire until Dec. 31, and there is no danger of government programs causing milk prices to double before then.

This week at World Dairy Expo, the Wisconsin Dairy Busi-ness Association (DBA) voiced support for the Goodlatte/Scott amendment to the farm bill that would remove a controversial supply management program while retaining a margin insur-ance safety net for dairy farmers.

“Dairy farmers in Wisconsin could have been penalized up to $18,000 had this program been in effect now,” says Jerry Meiss-ner, president of the board of directors for DBA. “This is bad news for Wisconsin.”

The National Milk Producers Federation (NMPF), which sup-ports the Dairy Margin Stabiliza-tion Program (DMSP) included in the Senate version of the farm bill, this week spoke with Cheese Mar-ket News and expressed concern with various claims surrounding DMSP and the Goodlatte/Scott amendment.

NMPF President and CEO Jerry Kozak and Jim Tilli-son, chief operating offi cer

Raw milk legal issues proceed across the U.S.

Turn to FARM BILL, page 11 D

Turn to NASS, page 13 D

CHEYENNE, Wyo. — Wyoming is close to al-lowing the distribution of raw milk to consumers through legalizing herd shares, while farmers in other states are facing or recently concluded legal cases related to raw milk distribution.

The Wyoming Depart-ment of Agriculture is in the process of changing

Turn to RAW, page 9 DTurn to AUCTION, page 15 D

Scan this code for breaking news and the latest markets!

A

INSIDE) Guest column: ‘How long can U.S. cheese prices stay this high?’ For details, see page 4.

) Mondelez completes spin-off of Kraft Foods. For details, see page 6.

) DBIC consultants launch Profi table Growth Network. For details, see page 7.

) Three charged with cheese smuggling in Canada. For details, see page 12.

Reprinted with permission from the Oct. 5, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

Page 2: Vilsack visits WDE; effects of expired farm bill are debated · Volume 32 October 5, 2012 Number 37 U.S. cheese production up 2.6 percent from year ago WASHINGTON — Total U.S. cheese

2 CHEESE MARKET NEWS® — October 5, 2012

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.

MARKET INDICATORS

STAFF SUBSCRIPTION INFORMATION&KHHVH�0DUNHW�1HZV���3XEOLFDWLRQ�����������������������������������,661�������������LV�SXEOLVKHG�ZHHNO\�E\�4XDUQH�3XEOLVKLQJ�//&�������6LJQDWXUH�'ULYH��0LGGOHWRQ��:,���������3KRQH����������������)$;���������������3HULRGLFDOV�SRVWDJH�SDLG�DW�0DGLVRQ��:,��&LUFXODWLRQ�UHFRUGV�DUH�PDLQWDLQHG�E\�4XDUQH�3XEOLVKLQJ�//&�������6LJQDWXUH�'ULYH��0LGGOHWRQ��:,� ��������POSTMASTER: Send address changes to Cheese Market News®, Subscriber Services, P. O. Box 628254, Middleton, WI 53562; Form 3579 requested; or call direct at 608/831-6002.� �$OO� ULJKWV�UHVHUYHG�XQGHU�WKH�8QLWHG�6WDWHV�,QWHUQDWLRQDO�DQG�3DQ�$PHULFDQ�&RS\ULJKW� &RQYHQWLRQV�� 1R� SDUW� RI� WKLV� SXEOLFDWLRQ� PD\� EH�UHSURGXFHG��VWRUHG�LQ�D�UHWULHYDO�V\VWHP�RU�WUDQVPLWWHG�LQ�DQ\�IRUP�RU�E\�DQ\�PHDQV��PHFKDQLFDO�� SKRWRFRS\LQJ��HOHFWURQLF�UHFRUGLQJ�RU�RWKHUZLVH��ZLWKRXW�WKH�SULRU�ZULWWHQ�SHUPLVVLRQ�RI�4XDUQH� 3XEOLVKLQJ� //&�� �2SLQLRQV� H[SUHVVHG� LQ� DUWLFOHV� DUH�WKRVH� RI� WKH� DXWKRUV� DQG� GR� QRW� QHFHVVDULO\� UHÁHFW� WKRVH� RI�4XDUQH�3XEOLVKLQJ�//&�GED�&KHHVH�0DUNHW�1HZV���&KHHVH�0DUNHW�1HZV��GRHV�QRW�HQGRUVH�WKH�SURGXFWV�RI�DQ\�DGYHUWLVHU�DQG�GRHV�QRW�DVVXPH�DQG�KHUHE\�GLVFODLPV�DQ\�OLDELOLW\�WR�DQ\�SHUVRQ�IRU�DQ\�ORVV�RU�GDPDJH�FDXVHG�E\�HUURUV�RU�RPLVVLRQV�LQ�WKH�PDWHULDO�FRQWDLQHG�KHUHLQ��UHJDUGOHVV�RI�ZKHWKHU�VXFK�HUURUV�UHVXOW�IURP�QHJOLJHQFH��DFFLGHQW�RU�DQ\�RWKHU�FDXVH�ZKDWVRHYHU��&RS\ULJKW������E\�4XDUQH�3XEOLVKLQJ�//&�Subscriptions:������IRU�8�6���VHFRQG�FODVV�GHOLYHU\���������IRU�8�6��ÀUVW�FODVV�GHOLYHU\�LQFOXGLQJ�&DQDGD�DQG������,QWHU�QDWLRQDO�UDWH�WR�DOO�RWKHUV���3ULQWHG�LQ�8�6�$�

Susan Quarne, 3XEOLVKHU (PH 608/831-6002; FAX 608/831-1004)���e-mail: [email protected] Kate Sander, (GLWRULDO�'LUHFWRU (PH 509/962-4026; FAX 509/962-4027)���e-mail: [email protected] Sowerwine, 6HQLRU�(GLWRU (PH 608/288-9090; FAX 608/288-9093)�� e-mail: [email protected] Archwamety, 1HZV�:HE�(GLWRU (PH 608/288-9090; FAX 608/288-9093)�� e-mail: [email protected] Aaron Martin, 1HZV�(GLWRU (PH 608/288-9090; FAX 608/288-9093)�� e-mail: [email protected]

REGULAR CONTRIBUTORSJohn Umhoefer, Downes-O'Neill LLC, International Dairy Foods Association, National Milk Producers Federation

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

Dry Products* October 5, 2012

DRY BUTTERMILK(FOB)Central & East: $1.4500(+2 3/4)-$1.6300(-4).(FOB) West: $1.3200-$1.6000; mostly $1.4000(+2)-$1.4800.

EDIBLE LACTOSE(FOB)Central and West: $.6800(+1 1/2)-$.9000(-5 3/4); mostly $.7500(-3)-$.8200(-5).

NONFAT DRY MILKCentral & East: low/medium heat $1.4625(+8 1/4)-$1.6900(-11); mostly $1.4650(+1 1/2)-$1.6000(-5). high heat $1.5125(+1 1/4)-$1.7900(-11).West: low/medium heat $1.3800(+2)-$1.6500(-5); mostly $1.4200(+2)-$1.6000(-5). high heat $1.4200(+2)-$1.7000(-5).Calif. manufacturing plants: extra grade/grade A weighted ave. $1.3664(+.0460) based on 4,932,619 lbs. Sales to CCC: 0 lbs.

WHOLE MILK POWDER (National): $1.6000-$1.7300.

DRY WHEYCentral: nonhygroscopic $.5550-$.6250; mostly $.5700-$.6000.West: nonhygroscopic $.5800(+1)-$.6300; mostly $.5900(+1)-$.6225.(FOB) Northeast: extra grade/grade A $.6250(+1)-$.6375(+1/2).

ANIMAL FEED (Central): Whey spray milk replacer $.4350-$.5850(+1/2).

WHEY PROTEIN CONCENTRATE (34 percent): $1.2000(+1)-$1.3425; mostly $1.2100(+1 3/4)-$1.2525(+2).

CASEIN: Rennet $3.7000(-5)-$4.4000; Acid $4.3500-$4.7500.

*Source: USDA’s Dairy Market News

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

YEAR2006200720082009201020112012

JAN13.3913.5619.3210.7814.5013.4817.05

FEB12.2014.18 17.03 9.31 14.2817.0016.06

MAR11.1115.0918.0010.4412.7819.4015.72

APR10.9316.0916.7610.7812.9216.8715.72

MAY10.8317.6018.18 9.8413.3816.5215.23

JUN11.2920.1720.25 9.9713.6219.1115.63

JUL10.9221.3818.24 9.9713.7421.3916.68

AUG11.0619.8317.3211.2015.1821.6717.73

SEP12.2920.0716.2812.1116.2619.0719.00

OCT12.3218.7017.0612.8216.9418.03

NOV12.8419.2215.5114.0815.4419.07

DEC13.4720.6015.2814.9813.8318.77

Total Contracts Traded/Open Interest

Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.*Total Contracts Traded/Open Interest reflect an additional month not included in this chart.

SEP12OCT12NOV12DEC12JAN13FEB13MAR13APR13MAY13JUN 13JUL 13AUG 13

54/5,983

1.8662.0632.0311.9331.8911.8551.8251.8131.8101.8101.850

------

1,4181,2291,1751,251

281163136120114

904

------

CHEESE FUTURES* for the week ended October 4, 2012 (Listings for each day by month, settling price and open interest)

1.8652.0732.0811.9741.8911.8621.8251.8131.8101.8101.8291.839

1,3991,2521,1681,244

281163136120114

9583

75/5,985

------2.0592.0761.9811.9091.8621.8251.8131.8101.8101.8291.839

------1,2531,1691,242

27916513612011495

83

Fri., Sept. 28 Mon., Oct. 1 Tues., Oct. 2 Wed., Oct. 3 Thurs., Oct. 4

1.8662.0702.0271.9331.8911.8551.8251.8131.8131.8131.850

------

1,4181,2271,1741,251

281163136118108

734

------

49/5,955

1.8662.0472.0141.9251.8911.8431.8251.8051.8101.8101.850

------

1,4181,2291,1641,247

2811621361189972

4------

95/5,932 72/4,586

Total Contracts Traded/Open Interest

SEP12OCT12NOV12DEC12JAN13FEB13MAR13APR13MAY13JUN 13JUL 13AUG 13SEP 13OCT 13NOV 13DEC 13

25/1,626

58.2561.0063.2063.5061.2560.5060.0060.0060.0060.0058.0056.5054.0052.5052.2551.25

314273222293

575454464135454240373736

DRY WHEY FUTURES for the week ended October 4, 2012 (Listings for each day by month, settling price and open interest)

58.4661.0063.5063.2561.2560.5060.0060.0060.0059.5058.0056.5054.0052.5052.2551.25

321278222295

575454464138454240373736

20/1,643 14/1,331

Fri., Sept. 28 Mon., Oct. 1 Tues., Oct. 2 Wed., Oct. 3 Thurs., Oct. 4

58.2561.7564.0064.0062.5062.5062.5061.5061.7560.5058.0056.5054.0052.2552.0051.00

31/1,619

58.2560.5063.0063.0062.4862.5062.5062.0061.7560.0058.0056.5054.0052.0051.7550.75

310272224291

555255453834454240373736

40/1,613

314271224288

575255474034454240373736

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

------62.0063.5063.7562.0061.5060.5060.0060.0059.5058.0056.5054.0052.5052.2551.25

------283222296

605454464138454240373736

Monday Tuesday Wednesday Thursday Friday

Chicago Mercantile Exchange

Oct. 1 Oct. 2 Oct. 3 Oct. 4 Oct. 5

Weekly average (Oct. 1-5): Barrels: $2.0480(+.0340); 40-lb. Blocks: $2.0940(+.0375).Weekly ave. one year ago (Oct. 3-7, 2011): Barrels: $1.7010; 40-lb. Blocks: $1.7340.

Cheese BarrelsPriceChange

Cheese 40-lb. blockPriceChange

Extra Grade NDMPriceChange

Grade A NDMPriceChange

Weekly average (Oct. 1-5): Extra Grade: $1.6350(NC); Grade A: $1.6600(-.0140).

Grade AA ButterPriceChange

Class II Cream (Major Northeast Cities): $2.4832(+.0896)–$2.5802(+.0370).Weekly average (Oct. 1-5): Grade AA: $1.9325(-.0075).

$1.9500NC

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

Cash prices for the week ended October 5, 2012

$2.0350 NC

$2.0850NC

$1.6350NC

$1.6600NC

$1.9500NC

$2.0600 +1

$2.1000NC

$1.9425+1/4

$1.6350 NC

$1.6600NC

$1.8600-9 1/4

$1.6350 NC

$1.6600NC

$2.0350 NC

$2.0850+1

$1.6350NC

$1.6600NC

$1.9500NC

$2.0600 NC

$2.1000 NC

$2.0500 +1 1/2

$2.1000+1 1/2

$1.6350 NC

$1.6600NC

(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

10,968119,894

+146-1,632

7,898135,187

NCNC

+3,070-15,293

NC NC

Weekly Cold Storage Holdings October 1, 2012 On hand Week Change since Oct. 1 Last Year Monday Change Pounds Percent Pounds Change

Reprinted with permission from the Oct. 5, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

Page 3: Vilsack visits WDE; effects of expired farm bill are debated · Volume 32 October 5, 2012 Number 37 U.S. cheese production up 2.6 percent from year ago WASHINGTON — Total U.S. cheese

October 5, 2012 — 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.

NEWS/BUSINESS MARKET INDICATORS

For more information please visit www.johnsonindint.com

DEDICATED TO THE CHEESE & DAIRY INDUSTRIES FOR OVER FOUR DECADES!Johnson Industries’ RMC is capable of forming and cooling Mozzarella/Pizza cheese into standard sizes and/or custom sizes based on your plant’s unique needs. One machine can satisfy all of your needs.

Interchangeable MoldsOffers Dimensionally True Surface Ensuring Excellent ShapeSuperior Rapid CoolingCapacities Exceeding

12,000 lbs./hr.CIP StandardAutomated Operation

ROTARY MOLDER CHILLER (RMC)

6391 Lake Road, Windsor, WI 53598

EMAIL: [email protected]: www.johnsonindint.com

Your Global Cheese Making and Processing Equipment Resource

Johnson IndustriesInternational Inc.©

DEDICATION

Class 4aClass 4b

Butterfat$ 1.9763/lb.$ 1.9763/lb.

SNF$ 1.1150/lb.$ 1.2169/lb.

Equivalent $ 16.62/cwt.$ 17.50/cwt.

California Minimum PricesReleased October 1, 2012

Class III: Price Skim Price Class IV:Price Skim Price Class II:Price Butterfat PriceComponent Prices: Butterfat Price Nonfat Solids Price Protein Price Other Solids Price Somatic Cell Adjustment Rate Product Price Averages:Butter Nonfat Dry Milk Cheese Dry Whey

Class & Component PricesSeptember 2012

$ 19.00/cwt.$ 12.42/cwt.

$ 17.41/cwt.$ 10.77/cwt.

$ 17.04/cwt.$ 2.0117/lb.

$ 2.0047/lb.$ 1.1969/lb.$ 3.2521/lb.$ 0.3971/lb.$ 0.00093/1,000 scc

$ 1.8269/lb.$ 1.3768/lb.$ 1.8647/lb.$ 0.5846/lb.

August 2012

$ 17.73/cwt.$ 11.72/cwt.

$ 15.76/cwt.$ 9.68/cwt.

$ 15.64/cwt.$ 1.8409/lb.

$ 1.8339/lb.$ 1.0756/lb.$ 3.1211/lb.$ 0.3462/lb.$ 0.00088/1,000 scc

$ 1.6859/lb.$ 1.2543/lb.$ 1.7682/lb.$ 0.5352/lb.

ARLINGTON, Va. — Cooperatives Working Together (CWT) has accepted 10 requests for export assistance from Dairy Farmers of America, Land O’Lakes, Maryland & Virginia Milk Producers Cooperative Association and United Dairymen of Arizona to sell 4.246 million pounds (1,926 metric tons) of Cheddar and 200,621 pounds (91 metric tons) of butter to customers in Asia, Central America, the Middle East and North Africa. The product will be delivered

CWT accepts 10 requests for assistanceOctober 2012 through March 2013.

In 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 95.9 million pounds, butter totaling 58.3 million pounds, and anhydrous milkfat totaling 123,459 pounds.

CWT pays export bonuses to the bidders when delivery of the prod-uct is verified by the submission of required documentation. CMN

National Dairy Products Sales Report

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 AMS at 202-720-4392.

Average price1 Sales volume2

Cheese 500-lb. Barrels:Average price1

Adj. price to 38% moistureSales volume2

Moisture content Butter:

Average price1

Sales volume2 Nonfat Dry Milk:

Average price1 Sales volume2

Dry Whey:Average price1 Sales volume2

For the week ended: 9/15/12

$1.851511,657,162

$1.9165$1.8193

10,595,79034.69

*$1.85792,877,134

*$1.3806*12,820,302

$0.58528,101,017

$1.848412,507,227

*$1.9198*$1.8277

*10,019,09934.88

$1.84364,960,947

*$1.3941*13,579,361

*$0.5932*$8,034,011

9/22/12 9/8/12

$1.853311,319,528

$1.9377$1.8330

11,057,98834.46

$1.80374,787,843

*$1.3623*15,515,147

$0.57518,260,660

$1.890711,811,904

$2.0023$1.9051

9,486,12934.84

1.87913,619,759

$1.43959,894,621

$0.60619,732,485

9/29/12

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

346302250195

13

7/1,106

SEP12OCT12NOV12DEC12JAN 13

Cash-Settled Butter*

SEP12OCT12NOV12DEC12JAN13FEB13MAR13APR 13MAY 13JUN 13JUL 13AUG 13

Total Contracts Traded/Open Interest

941795769637107155

675348564512

30/3,687

182.35193.50192.00179.50177.25177.50179.00180.50180.50182.00182.75181.25

137.68150.50156.98157.95157.00

381302250194

13

3/1,140

182.69191.00188.00178.23177.48177.95178.75180.50180.50182.00182.75181.25

1,039781760642122160

755348564512

126/3,797

------150.50155.00157.95157.00

------302250194

13

1/759

------191.00188.00178.23177.48177.75178.75180.00180.50182.00182.75181.25

------781760642125160

755348564512

6/2,761

Fri., Sept. 28 Mon., Oct. 1 Tues., Oct. 2 Wed., Oct. 3 Thurs., Oct. 4

Fri., Sept. 28 Mon., Oct. 1 Tues., Oct. 2 Wed., Oct. 3 Thurs., Oct. 4

Total Contracts Traded/Open Interest

Fri., Sept. 28 Mon., Oct. 1 Tues., Oct. 2 Wed., Oct. 3 Thurs., Oct. 4

SEP12OCT12NOV12DEC12JAN13FEB13MAR13APR13MAY13JUN13JUL13AUG13SEP13OCT13NOV13DEC13JAN14

Class III Milk#

18.9621.1020.9519.9719.4219.0218.8318.5518.5418.5318.6918.7218.6818.3618.0517.9617.62

4,8835,2755,1843,9081,5821,3171,2281,040

895829621654503411362350

3

736/29,045

19.0021.1721.3420.3619.5819.1218.9218.6018.5418.5018.6718.7118.6618.3118.0517.9917.62

5,5585,3185,2613,9041,5841,3231,2181,046

900833625659504414369357

3

1,263/29,876

------21.0621.2620.4819.6619.2419.0118.6718.5518.5118.7318.7418.6018.2718.0517.9217.62

------5,2135,2324,1691,5801,3481,2231,052

913840632666512419373364

3

1,657/24,539

Total Contracts Traded/Open Interest

Class IV Milk

SEP12OCT12NOV12DEC12JAN13FEB13MAR13APR13MAY 13JUN 13

17.5019.1019.6419.0019.1519.0019.0018.2518.0018.00

119867483585657772

17.4119.1019.4019.0019.0719.0019.0018.2518.0018.00

119867483585657

772

0/549

------19.1019.4019.0019.0719.0019.0018.2518.0018.00

------867483585657

772

0/549

CME FUTURES for the week ended October 4, 2012

Fri., Sept. 28 Mon., Oct. 1 Tues., Oct. 2 Wed., Oct. 3 Thurs., Oct. 4

0/430

17.5019.1019.8619.3219.2019.0019.0018.2518.0018.00

139.28150.50159.48159.50159.50

182.35194.50192.98181.50179.48179.00180.00181.00180.50182.00182.75181.00

55/3,664

6/1,106

8/549

838/28,987

18.9820.8620.8319.8619.4219.1118.9218.6218.6118.6518.8418.8318.7818.3318.1017.9617.62

1,021/28,761

17.5019.1019.9919.7519.2019.0019.0018.2518.0018.00

119867478585657

772

0/544

139.50150.50161.98160.50159.50

346302250198

10

9/1,106

182.35194.50194.00182.93180.48179.90182.45182.48183.00183.00182.50180.50

941791742630104150

635345534512

60/3,631

4,8405,2145,1423,8871,5731,2991,2181,033

881804625652495398360337

3

119867483585657

772

346302250198

10

941791756636106151

675348564512

139.10150.50156.98157.95157.00

4,8835,2365,1713,9141,5931,3221,2311,041

895814627655494401362345

3

18.9721.1321.0019.9919.4919.1218.9118.6218.5718.6218.8018.7218.7018.3118.0517.9117.62

Reprinted with permission from the Oct. 5, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

Page 4: Vilsack visits WDE; effects of expired farm bill are debated · Volume 32 October 5, 2012 Number 37 U.S. cheese production up 2.6 percent from year ago WASHINGTON — Total U.S. cheese

4 CHEESE MARKET NEWS® — October 5, 2012

Sara Dorland is managing partner with Ceres Dairy Risk Management LLC in Seattle. She is a guest columnist for this week’s Cheese Market News®.

Perspective:Market Insight

How long can U.S. cheeseprices stay this high?

Tom Suber is president of the U.S. Dairy Export Council, which is primarily supported by Dairy Management Inc. through the producer checkoɈ that builds on collaborative industry partnerships to build global demand for U.S. dairy products. He contributes this column exclusively for Cheese Market News®.

Perspective:Export Expertise

Cheese: Getting to the next billion

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

“High prices cure high prices and low prices cure low prices.” While rudi-mentary, the statement clearly conveys the economic concepts behind supply/demand imbalances. When price moves higher, consumers begin to ration their purchases and suppliers make more cheese. In turn, stocks rebuild, lowering price. The converse also is true, leading to higher prices. Add to these examples weather, governments, globalization and cows, and the story of current

cheese price becomes a bit clearer.As of this writing, the past 10 trading

sessions for CME Cheddar blocks have closed higher than $2 per pound. Given these historically high cheese prices, dairy producers should be encouraged to supply more milk and consumers should ration their cheese purchases in order to rebalance supply and demand, thereby easing price from current levels. Sounds easy, but the detail involved in rebalanc-ing supply and demand could cause the

Cheddar block price to go higher and possibly stay higher for longer than these simple examples would suggest.

History can provide some insight to current market trends, when particular attention is paid to the cause of the past event. Looking back over the last full 5-year period, the CME block cheese price has spent prolonged periods above $2. Since 2007, the block price has had consecutive trading days above $2 nine times. In 2007, CME block prices climbed above $2 and held three times that year with the longest run at 31 trading days. The next year the CME block price had another four times with trading sessions higher than $2; in 2008, the longest consecutive trading session spanned 26 days. During these years, weather conditions adversely affected milk supply in both Oceania and Europe, reducing global supplies of dairy products. This provided an export opportunity for the United States.

Last year holds the record for the most consecutive trading days with the CME block cheese price above $2. For 53 days starting Jun. 5 and ending Aug. 17, block price closed above $2. During this time, the Midwest, the largest Cheddar cheese producing region in the country, was hit with sweltering heat and humidity which adversely affected milk production and in turn cheese production. In June and

July 2011, Wisconsin accounted for a 3 percent decline, Minnesota dropped 6 percent and Illinois was down 4.7 per-cent in year-over-year milk production. This coupled with a signifi cant product recall, which removed an estimated 30 million pounds of cheese from the sup-ply, drove prices considerably higher for most of the summer. Based on history, it can take extensive time to correct Ched-dar supply and demand imbalances.

The earlier economic examples as-sume immediate transfer of information between buyers and sellers — that is clearly not the case with cheese. Delays lead to markets taking a longer time to regain balance and increased volatility as there tends to be over-correction in both directions. The current milk pricing system has unavoidable time lags which delay transmission of market informa-tion to dairy producers and consumers.

In addition, the unpredictable im-pact of changing world weather patterns can promote or disrupt milk supply which can aggravate an already tenuous supply-demand situation. Further acts of government are capable of upsetting, or even ignoring, market signals in order to promote social or economic policy for their citizens. And fi nally, global sourcing has increased the complexity of managing regional supply-demand imbalance.

U.S. cheese export value through July topped $680 million — well on its way to breaking the $1-billion mark, a more than sevenfold increase over 2000. The United States is fi rmly planted as the No. 3 cheese supplier to the world, and we are gaining share.

U.S. cheese success in overseas markets is the result of long-term efforts by and collaboration between industry, government and organizations like the checkoff-supported USDEC to grow markets and build the reputation of the United States as a reliable source for high-quality product. Those efforts are cumulative — building one upon another — and encompass market ac-cess, marketing, market development (relationship building, delivering prod-

ucts that meet buyers’ needs, customer service) and trade policy.

The results have been so favorable that the route to $2 billion is largely (but not wholly) more of the same:

• Continued relationship building and demonstration of market commit-ment. U.S. cheesemaker efforts to ser-vice overseas markets are typifi ed by the growing ranks of U.S. suppliers opening foreign sales and marketing offi ces and sometimes even R&D centers to serve customers in Asia, Latin America and the Middle East. Such in-country, face-to-face interaction is critical to building the credibility of the United States as a cheese exporter, and moving forward, more of it is needed.

• Continued participation of Coop-

eratives Working Together (CWT). Since 2003, CWT has assisted with the sale of nearly 135,000 metric tons of U.S. cheese overseas. It has been an important factor in helping eligible U.S. suppliers, when conditions warrant it, to gain a foothold in world markets, opening the door for market entry, trial and now acceptance of U.S. commodity cheese in industrial uses. As export opportunities continue to grow and with total export volumes exceeding 250,000 metric tons per year, CWT can continue to provide assistance for par-ticipating U.S. companies, in particular when international prices are drawn down by international competitors.

• Continued customer service. A few years back, in a project spearheaded by USDEC, a handful of U.S. cheesemakers began working with Mexican buyers to develop gouda for our neighbor to the south. That project blossomed to the point where the United States now supplies about 20 percent of Mexico’s gouda imports (or around 9,000 metric tons of gouda last year and growing), a far cry from practically zero in 2008. Listening to customers and making the investment to deliver not just the prod-ucts that are easiest to manufacture but products that meet the taste, texture and functional attributes customers desire is key across all dairy categories.

• Continued reinforcement of our reputation for quality. The fi rst year USDEC co-sponsored the World Cheese Awards in 2003, cheesemakers from across the United States submitted 67 entries and won two gold medals (18 all together). Success clearly bred success:

Last year, U.S. cheesemakers entered 383 cheeses and won 27 gold medals alone, 85 overall. Although day-in, day-out quality of product shipped overseas is and will continue to be the ultimate yardstick, such accolades have sharply elevated our global image as a high-quality supplier of a variety of cheeses for all end uses.

• Continued foodservice expansion. Overseas foodservice expansion contin-ues to boom from the giants like Yum! Brands to the smaller regional players like Shake Shack. No end is in sight for their growth—and for U.S. cheese suppliers willing to commit to serving the market.

• Continued education efforts. New consumers entering the category world-wide means overseas food manufactur-ers, culinary professionals, shoppers and diners still require information on cheese taste, applications, functional-ity, handling and storage. More than 15 years of USDEC-sponsored cheese tastings, commercial bakery contests in Asia, and menu development as-sistance in Mexico, Japan, Korea and the Middle East have helped drive knowledge and make U.S. string cheese a hit in Korea, “American Originals” increasingly popular in Japan, the whiter and smoother U.S. cream cheese a U.S. cheese point of entry across Asia, and U.S.-cheese-laden burgers, pizzas, breads and cakes regular menu items in numerous countries.

• Continued defense of market ac-cess. Non-tariff trade barriers are pro-liferating. Ensuring U.S. suppliers have

Turn to DORLAND, page 8 D

Turn to SUBER, page 8 DReprinted with permission from the Oct. 5, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

Page 5: Vilsack visits WDE; effects of expired farm bill are debated · Volume 32 October 5, 2012 Number 37 U.S. cheese production up 2.6 percent from year ago WASHINGTON — Total U.S. cheese

October 5, 2012 — CHEESE MARKET NEWS® 5

NEWS/BUSINESS

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SEATTLE — Another lawsuit has been fi led this week in connection with a multi-state Listeriosis outbreak linked to Italian Ricotta Salata imported by Forever Cheese Inc.

Seattle-based attorney William Marler and San Diego-based attorney Frederic Gordon have fi led a lawsuit in Los Angeles County Superior Court against Forever Cheese Inc. and grocer Cookbook Los Angeles on behalf of Joanna Valentine and Laurie Sorenson and their infant son, who was born prematurely when Valentine became ill with a listeriosis infection after eating the imported Frescolina Marte brand Ricotta Salata.

Marler says on his blog that Valen-tine, who was 25 weeks pregnant, con-sumed Listeria-contaminated Ricotta Salata several times in the fi rst week of September. She began experiencing symptoms of Listeria infection Sept.

Illness count up, new lawsuit fi led over premature birth linked to Listeria cheese outbreak12, and over the next several days her symptoms worsened. On Sept. 18 So-renson took Valentine to the emergency room, where she was rushed to labor and delivery for treatment. Their son was born the next day at 27 weeks gestation, and both he and Valentine’s placenta tested positive for the same strain of Listeria that was isolated from samples of Ricotta Salata imported by Forever Cheese. The baby remains hospitalized in the neonatal intensive care unit, where he has been treated for a number of issues including high blood pressure, kidney failure, spinal meningitis and bleeding around the brain.

At least three other lawsuits have been fi led in connection with this out-break. (See “New lawsuits fi led, illness count up in Listeriosis outbreak linked to imported Italian cheese” in last week’s issue of Cheese Market News.)

Whole Foods Market, which is a

defendant in at least one of the law-suits, this week updated its recall of the imported Ricotta Salata. In the four Whole Foods stores that sold the cheese in California and Arizona, the recalled cheese also was sold with a Whole Foods Market scale label that read “Mitica Ricotta Salada,” and with Whole Foods Market scale labels with PLU 294413, the update says. All “sell by” dates through Oct. 2 are affected. Whole Foods stores in 21 states and Washington D.C. have been affected by this recall.

As of Sept. 26, a total of 18 people infected with the outbreak-associated strain of Listeria monocytogenes have been reported from 12 states and Washington D.C., according to the latest update form the Centers for Disease Control and Prevention (CDC). All 18 people were hospitalized and three deaths have been reported. Listeriosis

is confi rmed to have contributed to at lease one of these deaths. One fetal loss also has been reported.

CDC says collaborative investiga-tion efforts of local, state and federal public health and regulatory agencies indicate that imported Ricotta Salata is the likely source of this outbreak. On Sept. 14, Forever Cheese Inc. issued an expanded recall of all lots and produc-tion codes of Frescolina Marte brand Ricotta Salata and issued a market with-drawal of all cheese they received that were produced by the Italian cheese exporter. The cheese also may have been referred to as Ricotta Frescolina Marte Tipo Toscanella or Ricotta Salata Soft during distribution. CDC adds that labeling of the recalled Ricotta Salata after it was cut and repackaged has been inconsistent, and labels of repack-aged cheese may not include the words “Marte” or “Frescolina.” CMN

MONROE, Wis. — Alpine Slicing and Cheese Conversion Co., Monroe, Wis., this week announced it has fi led a voluntary petition for reorganization with the federal Bankruptcy Court in the Western District of Wisconsin.

Shirley Knox, corporate secretary of Alpine Slicing and Cheese Conversion, a private label cheese conversion and packaging company, says that while the company is in a good fi nancial position and is current with vendor payments, pending claims from a late 2011/early 2012 recall required the company to fi le a Chapter 11 petition.

Earlier this year, several cheese companies conducted recalls after Alpine found Listeria monocytogenes in products processed on its shred line.

The company discovered the issue during testing of its products by an independent laboratory. Laboratory testing confi rmed that certain products processed on the shred line contained Listeria monocytogenes. (See “Liste-ria found at Wisconsin conversion facility results in recalls of numerous products” in the Jan. 6, 2012, issue of Cheese Market News.)

“We have a strong company with great people and wonderful service, and our business operations will continue while we go through this process,” Knox says. “However, pending claims related

Alpine Slicing and Cheese Conversion fi les with bankruptcy court for reorganization

to the recall are such that reorganiza-tion is the best alternative for securing a strong future for our company. Busi-ness will continue as usual while this takes place, and we anticipate we will continue to employ our entire staff and serve the needs of our customers.”

Knox adds that “no one will lose their job, and we expect to meet all our responsibilities to our vendors and customers. We will continue to produce product while this process moves for-ward. The uncertainty of the pending claims related to the recall has forced our hand.”

Knox notes the uncertainty of the recall claims and possible litigation in different locations throughout the country required Alpine to look at a different approach to reorganizing its business to allow it to address legitimate recall claims.

“Filing a reorganization petition is the best way to make sure Alpine stays in business,” Knox says. “While it’s been a diffi cult decision, I am confi dent our business will continue, and we will work through these challenges and operate as an ongoing entity as the recall claims are resolved.”

Knox adds that despite the fi ling, she has “full faith and confi dence that we will continue as a great company, and also will emerge as a stronger enterprise.” CMN

WASHINGTON — The Offi ce of the U.S. Trade Representative (USTR) held a public hearing Sept. 24 on matters related to Canada’s participation in the negotiations of the Trans-Pacifi c Partnership (TPP). Dairy industry rep-resentatives were among 11 individuals representing industry associations, non-governmental organizations and organized labor who offered testimony

Dairy organizations testify at hearing on Canada’s participation in Trans-Pacifi c Partnershipat this hearing to offi cials from USTR and other U.S. government agencies.

Clay Hough, senior group vice president of the International Dairy Foods Associa-tion (IDFA), testifi ed that IDFA supports Canada’s participation, but says the coun-try must abandon its current dairy policies because they confl ict with TPP goals.

“The ultimate objective of dairy market access discussions with Canada

should be for full duty-free access,” Hough says. “Canada’s supply manage-ment system should be reformed and distortions to the trade of dairy products should be removed.”

Hough says these market-oriented reforms and further integration of the North American dairy market would encourage innovation, product devel-opment and growth for the Canadian dairy industry and U.S. dairy exporters.

Jaime Casteneda, senior vice presi-dent for strategic initiatives and trade policy, National Milk Producers Fed-eration (NMPF) and U.S. Dairy Export Council (USDEC), said in his testimony that the TPP negotiations, particularly the participation of Canada, are a top priority for America’s dairy industry.

“We look forward to supporting our negotiators in developing a com-mercially meaningful trade agreement that sets the stage for further ambitious market-openings for U.S. exports, in-cluding in Canada,” Hough says.

He adds that in addition to full elimi-nation of all tariffs and other duties, the TPP negotiations should be used to address non-tariff measures hindering U.S. dairy exports to Canada.

“In particular, we seek a full rec-ognition between the United States and Canada of each others’ dairy regulatory and oversight systems — once tariffs have been fully elimi-nated — as being a very important tool to create predictability in U.S.-Canadian dairy trade,” he says. CMN

Reprinted with permission from the Oct. 5, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

Page 6: Vilsack visits WDE; effects of expired farm bill are debated · Volume 32 October 5, 2012 Number 37 U.S. cheese production up 2.6 percent from year ago WASHINGTON — Total U.S. cheese

6 CHEESE MARKET NEWS® — October 5, 2012

For more information please visit www.creamoprot.com

NEWS/BUSINESS

MIDDLETON, Wis. — Organic Valley’s Generation Organic bus stopped by Willy Street Co-op in Middleton, Wis., Saturday, Sept. 29. Here they met up with Food Patriots, a public engagement campaign and fi lm in-progress that aims to inspire people to make a 10-percent change in the way they buy, eat and talk about food. The Generation Organic members pictured left to right are: Lydia Hardie, Kris-tina Hemstead, James Frantzen, Lorelei D’Huyvetter and Caroline D’Huyvetter.

Frantzen notes this is the third annual Generation Organic bus tour, with this year’s tour focusing on the Midwest region. The tour, which started Sept. 25 and runs through Oct. 14, engages consum-ers through three main channels: retail stores, colleges and universities, and educational tours on Organic Valley member farms, he says. CMN

Generation Organic

NORTHFIELD, Ill. — Mondelez In-ternational Inc., formerly Kraft Foods Inc., has completed the previously an-nounced spin-off of its North American grocery business, Kraft Foods Group Inc.

At 5 p.m. EDT on Oct. 1, 2012, Mon-delez International completed the spin-off by distributing all outstanding shares of Kraft Foods Group common stock that it owned ratably to its shareholders of record as of the close of business on Sept. 19, 2012. The distribution was based on a distribution ratio of one share of Kraft Foods Group common stock for every three shares of Mondelez International common stock.

Concurrent with the spin-off, Kraft Foods Inc. changed its name to Mondelez International Inc. Mon-delez International is trading on The NASDAQ Global Select Market under the ticker symbol “MDLZ,” and Kraft Foods Group is trading on The NASDAQ Global Select Market under the ticker symbol “KRFT.” The ticker

Mondelez completes spin-off of Kraft Foodssymbol “KFT” has been retired.

On Tuesday, Tony Vernon, CEO of Kraft Foods Group Inc., joined employ-ees in the company’s Northfi eld, Ill., headquarters to ring the opening bell of the NASDAQ Stock Market and kick off the new food and beverage company’s fi rst day of trading as an independent company.

“Today is the beginning of a great new company, a totally new Kraft, one with the spirit of a startup and the soul of a powerhouse,” Vernon said Tuesday. “We are proud of our rich history and deeply passionate about Kraft’s future. We see this as an opportunity to build something extraordinary, to create a renaissance in the North American food & beverage industry.” CMN

PARAMUS, N.J. — Smart Balance Inc. recently announced plans to es-tablish two business segments, move its corporate headquarters to Boulder, Colo., and change its name to Boulder Brands Inc.

With its recent acquisition of Udi’s

Smart Balance announces plans to form two segments, change name, move headquartersHealthy Foods, the company says it has determined that it will establish two reportable operating segments, Smart Balance and Natural, which will formalize the way the company plans to operate its business and provide more clarity on its new strategic focus.

The Smart Balance segment will con-sist of the company’s branded products in spreads, butter, grocery and milk and will be led by John Becker, formerly senior vice president and general man-ager for the Smart Balance brand, who has been promoted to executive vice president of Smart Balance.

The Natural Brands segment will include the Earth Balance, Glutino and Udi’s branded products and will be led by T.J. McIntyre, formerly senior vice president and general manager of Glutino and vice president and general manager of Earth Balance, who has been promoted to executive vice president of Natural Brands. The company plans

to report by its new segment structure beginning with its third quarter earn-ings release.

To further streamline under the new structure, the company will eliminate the role of president and chief operating offi cer. Terry Schulke, who has served in this role with the company, will be leaving Smart Balance to pursue other opportunities.

The company says in 2013 it plans to move its primary corporate offi ces to Boulder, Colo., and change its name to Boulder Brands Inc. to better refl ect its recent transformation to a company with multiple brands and a greater presence in natural foods. CMN

STATEMENT OF OWNERSHIP,MANAGEMENT AND CIRCULATION

(Required by 39 U.S.C. 3685)

1. Title of publication: Cheese Market News.2. Publication number: 0891-1509.3. Date of filing: October 1, 20124. Frequency of Issue: Weekly. 5. No. of Issues published annually: 52.6. Annual subscription price: $135.00.7. Complete mailing address of known office of publication: 4692 Signature Drive, Middleton, WI 53562.8. Complete mailing address of headquarters or general busi-ness office of publisher: 4692 Signature Drive, Middleton, WI 53562.9. Full names and complete address of publisher and editor:Publisher: Susan Quarne, Cheese Market News, Quarne Publishing, 4692 Signature Drive, Middleton, WI 53562.Editorial Director: Kate Sander, Cheese Market News, P.O. Box 620244, Middleton, WI 53562.10. Owner: Quarne Publishing, 4692 Signature Drive, Middleton, WI 53562.11. Known bondholders, mortgagees and other security hold-ers owning or holding 1 percent or more of total amount of bonds, mortgages or other securities: None.15. Extent and nature of circulation. Average no. copies each issue during preceding 12 months.A. Total number of copies (net press run): 2,096.B. Paid and/or requested circulation. 1. Paid/requested outside-county mail subscriptions stated on Form 3541: 1,389; 2. Paid in-county subscriptions: 89. 3. Sales through dealers and carriers, street vendors, counter sales and other non-USPS paid distribution: 145. 4. Other classes mailed through USPS: 329.C. Total paid and/or requested circulation: 1,952.D. Free distribution by mail: 0.E. Free distribution outside the mail: 93.F. Total free distribution: 93.G. Total distribution: 2,045.H. Copies not distributed: 51. I. Total: 2,096.J. Percent paid and/or requested circulation: 98%.15. Extent and nature of circulation. No. copies of single issue published nearest to filing date (9/28/12 issue).A. Total number of copies (net press run): 2,097.B. Paid and/or requested circulation. 1. Paid/requested outside-county mail subscriptions stated on Form 3541: 1,378; 2. Paid in-county subscriptions: 88. 3. Sales through dealers and carriers, street vendors, counter sales and other non-USPS paid distribution: 148. 4. Other classes mailed through USPS: 333.C. Total paid and/or requested circulation: 1,947.D. Free distribution by mail: 0.E. Free distribution outside the mail: 100.F. Total free distribution: 100.G. Total distribution: 2,047.H. Copies not distributed: 50. I. Total: 2,097.J. Percent paid and/or requested circulation: 98%.17. I certify that all information furnished on this form is true and complete. /s/ Susan K. Quarne, Publisher

Reprinted with permission from the Oct. 5, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

Page 7: Vilsack visits WDE; effects of expired farm bill are debated · Volume 32 October 5, 2012 Number 37 U.S. cheese production up 2.6 percent from year ago WASHINGTON — Total U.S. cheese

October 5, 2012 — CHEESE MARKET NEWS® 7

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MADISON, Wis. — Less than a week after the Wisconsin Dairy Business Innovation Center (DBIC) lost federal funding and closed its doors, a group of former DBIC consultants have formed the Profi table Growth Network (PGN) to provide business and development services for the dairy, food and bever-age industries.

Rich Scheuerman, a founding PGN principal, said the DBIC’s network of consultants were “given a heads up” that federal funding for the program would

Profi table Growth Network launched by consultants from Dairy Business Innovation Centernot be renewed. (Please see “Lack of funding leads to DBIC closure at end of September” in the Sept. 14, 2012, issue of Cheese Market News.) The former DBIC consultants worked on a plan that would allow it to continue the DBIC’s business services through PGN.

“PGN is not a replacement organi-zation (for DBIC). We don’t have any funding, we’re a network of consultants trying to make ourselves available to people,” says Scheuerman. “When the federal funding (for DBIC) ran out,

we had a lot of clients in the middle of their own new product development projects and working on farmstead dairy operations. Those plans didn’t go away just because the business service did, so we had to fi gure out what we could to help our clients.”

Scheuerman adds that PGN’s prin-cipals anticipate working with clients across the nation in a variety of indus-tries — not solely the dairy industry.

PGN’s services include: consumer insights, business strategy, fi nance and

funding, organizational development, product development, operations optimi-zation, marketing communications and sales and distribution. From enhancing operations, funding and organizational development to assisting with the creation of value-added products and brands, PGN says it will guide its clients to profi table growth outcomes.

For more information about PGN, visit www.profitablegrowthnetwork.com, call 608-492-1682 or e-mail [email protected]. CMN

DENVER — Thirty businesses in 17 states will take part in the American Cheese Month Passport Program dur-ing October, according to the American Cheese Society (ACS).

Customers can purchase a passport at any participating retailer for $10, and the passport provides a discount ranging from 20 to 40 percent off a designated “cheese of the day” at each retailer from Oct. 1-31. The passport is valid at all participating retailers, and the specifi c cheeses and discounts offered each day will vary by store. All proceeds from passport sales will benefi t the nonprofi t American Cheese Education Foundation, which funds educational opportunities and scholarships for cheesemakers.

The Passport Program started in 2011 as a way to generate consumer enthusi-asm for American artisan, farmstead and specialty cheeses during the fi rst annual American Cheese Month. This year’s 30 participants in 17 states is more than double the 12 retailers in two states that participated in the inaugural program last year. A full list of participating retailers is posted at www.americancheesemonth.org, and ACS will be posting updates on participating companies and their fea-tured cheeses throughout October on its Twitter feed, twitter.com/CheeseSociety.

Retailers interested in the Passport Program still can sign up online at www.cheesesociety.org/i-heart-cheese/amer-ican-cheese-month-passport-program.

American Cheese Month Passport Program celebrates second year with 30 businesses

There is no cost to participate, and ACS provides ready-to-print passports, sig-nage and marketing tools and resources to participants.

The participating businesses in the 2012 Passport Program currently include: Artisan Cheese Co., Sarasota, Fla.; Artisanal Fromagerie and Bistro, New York; Beecher’s Handmade Cheese, New York and Seattle; The Better Ched-dar, Prairie Village, Kansas; Brooklyn Victory Garden, Brooklyn, N.Y.; Butcher Block Meats & Cheese, Oshkosh, Wis.; The Calf & Kid, Seattle; Casellula Cheese & Wine Café, New York; Caseus Fromagerie Bistro, New Haven, Conn.; The Cheese Cave, Red Bank, N.J.; The Cheese Shop, Aspen, Colo.; Cheese Louise, Richland, Wash.; Eastern District, Brooklyn, N.Y.; Eat More Cheese, Belfast, Maine; Fairfi eld Cheese Co., Fairfi eld, Conn.; Fromagination, Madison, Wis.; Lucy’s Whey (Chelsea Market and East Hampton), New York; Marion Street Cheese Market, Oak Park, Ill.; Mission Cheese, San Francisco; Murray’s Cheese (Grand Central and Greenwich Village), New York; My Cheese Shoppe, Puyallup, Wash.; Orrman’s Cheese Shop, Charlotte, N.C.; Saxelby Cheesemongers, New York; Scardello, Dallas; Smoke House Market, Chesterfi eld, Mo.; Standard Market, Westmont, Ill.; StinkyBklyn, Brooklyn, N.Y.; Wedge & Bottle, Phoenix; Wedge — A Cheese Shop, Reno, Nev.; and Zinger-man’s Creamery, Ann Arbor, Mich. CMN

SUGARCREEK, Ohio — The Ohio Swiss Cheese Association raised a to-tal of $16,551.40 during its 2012 Swiss Cheese Auction during the Ohio Swiss Festival last week. The auction included Swiss cheeses from the Grand Champion and Reserve Champion winners of last week’s Ohio Swiss Festival Contest as well as Swiss entries from the People’s Choice award. (See “Guggisberg named Ohio Swiss grand champ in last week’s issue of Cheese Market News.)

The winning bids for the Grand Champion, Reserve Champion and People’s Choice Swiss cheeses include:• Grand Champion: Guggisberg Cheese

Walnut Creek Cheese purchased 52.34 pounds for a total of $3,140.40.

Troyer Cheese purchased 25.92

Ohio Swiss Cheese Association raises $16,551 at auction during 2012 Ohio Swiss Festivalpounds for a total of $1,944.00

Chr. Hansen purchased 8.65 pounds for a total of $550.00.

Commercial & Savings Bank pur-chased 8.62 pounds for a total of $575.

Hummel/Westfi eld Insurance pur-chased 8.51 pounds for a total of $625.00.

Cambridge Packaging purchased 8.41 pounds for a total of $650.00.

Supply One purchased 4.11 pounds for a total of $525.00.

Randles Cheese purchased 4.09 pounds for a total of $475.

Superior Tank purchased 4.09 pounds for a total of $525.00.

Cryovac purchased 4.09 pounds for a total of $525.00.• Reserve Champion: E.S. Steiner Dairy LLC

Randles Cheese purchased 52.85 pounds for a total of $1,321.25.

Smokey Lane Stables purchased 25.83 pounds for a total of $645.75.

Chr. Hansen purchased 8.11 pounds for a total of $500.00.

Cryovac purchased 7.83 pounds for a total of $525.00.

Weaver’s Fine Furniture purchased 7.74 pounds for a total of $550.00

Commercial & Savings Bank pur-chased 7.66 pounds for a total of $525.00.

Vilutis & Co. purchased 4.97 pounds for a total of $300.00.

Eagle Machinery purchased 4.68 pounds for a total of $275.00.

Superior Tank purchased 4.24 pounds for a total of $225.00.

Cambridge Packaging purchased 3.92 pounds for a total of $225.00.• People’s Choice

Hummel/Westfi eld Insurance pur-chased 8 pounds of People’s Choice winner Pearl Valley’s Swiss for a total of $1,000.00.

Troyer Cheese purchased 8 pounds of Guggisberg Swiss for a total of $350.00.

Cryovac purchased 8 pounds of Broad Run Swiss for a total of $325.00.

McElroy Packaging purchased 8 pounds of E.S. Steiner Swiss for a total of $250.00. CMN

LANCASTER, Wis. — Woolwich Dairy Inc. plans to expand its goat cheese manufacturing facility and United States headquarters here. The company submitted site plans to city offi cials for review in September.

The plans call for expansion of the 27,000-square-foot facility’s production area, which the company says could expand the work force there to about

Woolwich Dairy Inc. plans to expand facility100 total employees. The plant, which makes soft goat cheese, now employs about 25.

Established in 1983 in Ontario, Cana-da, the goat cheese manufacturer estab-lished its U.S. headquarters in southwest Wisconsin in 2007. The company has numerous brands in the North American market, including: Chevrai, Goat Brie, Cheddar, Feta and Mozzarella. CMN

Reprinted with permission from the Oct. 5, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

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8 CHEESE MARKET NEWS® — October 5, 2012

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unimpeded access to high-potential, emerging cheese markets is a battle USDEC wages daily, from gaining ap-proval for natamycin use on cheese in Korea to fi ghting European Union efforts to impair the use of many com-monly used cheese names. USDEC has ratcheted up proactive efforts to head off non-tariff trade barrier issues before they become acute, but for the entire industry, vigilance is the watchword moving forward.

• Continued investment in free trade agreements. Every trade agree-ment signed by the United States from NAFTA forward has yielded cheese export benefi ts. We are now negotiat-ing the Trans-Pacifi c Partnership FTA, which holds signifi cant promise for open access to Canada (among other potential gains).

The tasks are tough but achievable — after all, we have been moving in the right direction for more than a decade. But they are not suffi cient for long-term cheese export health and growth on their own.

With U.S. cheese prices exceeding international last month, the fi rst time since 2009, it is important to remember that basing the U.S. position solely on a price competitive proposition is not a recipe for long-term success. Customer service, manufacturing to meet overseas needs, and in-country presence are all elements of providing greater value. But also needed are U.S. dairy policies and commercial practices that are better suited to meeting the needs of a global-ized dairy market, as highlighted in the Globalization Report by the farmer checkoff through the Innovation Center for U.S. Dairy (www.usdairy.com).

The sooner our system is better geared to globalization, the sooner we will reach $2 billion in U.S. cheese exports. CMN

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

SUBERContinued from page 4

DORLANDContinued from page 4

2012 provides a good demonstra-tion of all of these events occurring in a single year, causing both low and now high Cheddar block prices. Ear-lier in the year, global market prices were declining for all products. Milk prices throughout the world were slow to reflect and communicate the change in sentiment. Conversely as market price moves higher, these same delays are slow to return price recovery signals to dairy producers, resulting in expectations for lower global milk supply in the back half of the year.

Weather events also have been a factor in 2012, making it a tale of two milk production years. During the fi rst half of the year, ideal weather conditions throughout major producing regions increased milk production. This eventu-ally led to a supply glut in the spring. In early July, news of widespread drought throughout much of the United States began to paint a different picture for the second half of 2012. By the end of summer, the vigorous milk growth seen in early 2012 was replaced with slower expansion to the point of contraction when U.S. milk production in August dipped below prior year levels.

All the while, strong demand, both domestically and abroad, has been an undercurrent to the Cheddar block

market. While American Cheddar pro-duction in 2012 has been higher than last year, demand has kept stocks in check for the better part of the year. With lower inventories than one year ago and prospects of further contraction in domestic milk supply, it comes with little astonishment that CME Cheddar blocks are currently trading higher than $2. Versus 2011 with 53 consecutive trading days above $2, the current run of 10 days seems as if it will do little to discourage consumers from continuing to purchase at their current pace.

With limited appetite to expand milk supply coupled with a stronger desire for more U.S. cheese, it could take sharply higher prices or high prices for a longer period of time to coax both

U.S. dairy producers and consumers to change their current behavior. Over time, the shock factor of $2 per pound of Cheddar blocks may be fading in the eyes of consumers. Similarly, given today’s feed prices, current high milk prices may do little to improve on-farm economics. This may suggest Cheddar block prices at $2 for longer periods of time may be more tolerable than in the past. The question remains, what is the price point or amount of time needed to get market partici-pants to change their behavior? CMN

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

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

Reprinted with permission from the Oct. 5, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

Page 9: Vilsack visits WDE; effects of expired farm bill are debated · Volume 32 October 5, 2012 Number 37 U.S. cheese production up 2.6 percent from year ago WASHINGTON — Total U.S. cheese

NEWS/BUSINESSOctober 5, 2012 — CHEESE MARKET NEWS® 9

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RAWContinued from page 1

the state’s food safety rules to allow consumers to receive raw milk sales via herd shares, where they can buy a share in a farmer’s dairy herd and receive unpasteurized milk from these cows. This circumvents the state’s ban on sales of raw milk for human consumption.

The proposed wording in the Wyoming food safety rule regarding raw milk is: “This subsection does not apply to individuals who obtain milk from animals owned by them, mem-bers of their family, or their employer and who furnish raw milk or products made from raw milk only to members of their family or non-paying guests.”

The proposed rule previously in-cluded the phrase “solely owned by them,” but after several requests at public hearings held across the state that the word “solely” be removed, state offi cials agreed to remove it. The Wyoming Department of Agriculture stresses that the proposed subsection still does not allow direct sales of raw milk to consumers.

Dean Finkenbinder, program man-ager of the Wyoming Department of Agriculture’s Consumer Health Ser-vices, says the department decided to make the change to allow herd shares after reviewing public comments and after discussions with the governor’s and attorney general’s offi ces and the director of the Department of Agriculture. The proposed rule has gone to Gov. Matthew Mead’s offi ce, where it is expected to be signed.

“The effects of the change will be more people will have access to unpasteurized milk,” Finkenbinder says, adding that the rule revision does not address any oversight of the producers. “We do have concerns over health risks, but as I stated previously, it was the desire of the public through comments received and discussions with the governor’s offi ce, attorney general offi ce and the director of agriculture.”

Meanwhile, a Wisconsin dairy farmer will go on trial in January for providing raw milk to consumers while operating without a license. Wisconsin law does not allow for retail sale of raw milk, though it does make some exceptions for incidental sales directly to consumers at the farm where the milk is produced.

Vernon Hershberger of Loganville, Wis., has been charged with four criminal misdemeanors, including operating a retail food establishment without a license, operating a dairy farm as a milk producer without a li-cense, operating a dairy plant without a license and violating a holding order issued by the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP).

Hershberger has denied these charges, saying he provides foods only

to paid members in a private buying club and is not subject to state food regulations.

“I am proud of what I am doing,” he said earlier this year following a March 2 court hearing in Baraboo, Wis. “There is nothing wrong with peacefully providing food to members of my community who want it. The state might put me in jail, but they cannot stop people from feeding their neighbors.”

Hershberger’s trial, originally scheduled for Sept. 25, has been postponed until Jan. 7. The nonprofi t Farm-to-Consumer Legal Defense Fund (FTCLDF), which supports raw milk and broad freedoms for family farms, will represent Hershberger.

FTCLDF vice president and Wiscon-sin attorney Elizabeth Rich will be litigating the case.

FTCLDF says the court’s ruling in the Hershberger case could have a huge impact on the availability of raw milk for Wisconsin consumers.

Another farmer in Minnesota who received assistance from FTCLDF re-cently was found not guilty of charges relating to the sale and distribution of raw milk.

On Sept. 20, a jury in Hennepin County, Minn., found Alvin Schlan-gen not guilty on three criminal misdemeanor counts for violations of the state food and dairy code. The Minnesota Department of Agricul-ture (MDA) alleged that Schlangen

sold raw milk off his farm, that he handled food without possessing a food handler’s permit and that he dis-tributed misbranded and/or adulter-ated dairy products. A fourth charge on a labeling violation was dropped at the beginning of the criminal trial. Schlangen is a volunteer manager of the Freedom Farms Co-op, which leases farm animals from him while he delivers food to its members.

“We congratulate Alvin and his attorney, Nathan Hansen, for vindicat-ing Alvin in a court of law,” says Pete Kennedy, FTCLDF president. “This is an important step in getting our regulatory agencies to honor citizen’s rights to private contracts.”

Turn to LEGAL, page 11 D

Reprinted with permission from the Oct. 5, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

Page 10: Vilsack visits WDE; effects of expired farm bill are debated · Volume 32 October 5, 2012 Number 37 U.S. cheese production up 2.6 percent from year ago WASHINGTON — Total U.S. cheese

10 CHEESE MARKET NEWS® — October 5, 2012

For more information please visit www.cheesemarketnews.com

LAKE BUENA VISTA, Fla. — “Secur-ing Dairy’s Future” will be the theme of the 2012 joint annual meeting of the National Dairy Promotion and Research Board (NDB), the National Milk Produc-ers Federation (NMPF) and the United Dairy Industry Association (UDIA) to be held here Oct. 29-31 at the Walt Disney World Dolphin Hotel.

Members of NDB, UDIA and Dairy Management Inc. (which is funded through NDB and UDIA) will share goals, strategies and results about how today’s dairy checkoff is helping protect

and answer questions about specifi c U.S. House, Senate and gubernatorial races;

• Patrick Doyle, president and CEO of Domino’s Pizza, will share results of the chain’s sales-building partnership with the dairy checkoff and preview plans to help grow dairy sales

• Doug Lipp, an internationally acclaimed expert on customer service and leadership, will share insights learned from training and motivating employees at Walt Disney University and Disneyland.

Following the general session Oct. 31, organizers will hold an awards lun-cheon to honor dairy industry leaders whose efforts have helped secure dairy’s future. The meeting will conclude with a banquet featuring a performance by Laura Bell Bundy, a country artist and actress.

For more information visit www.nmpf.org/nmpf-joint-annual-meeting. CMN

Agenda released for NDB, NMPF, UDIA joint annual meeting set for Oct. 29-31 in Floridaand grow dairy sales over the short and long term.

DMI CEO Tom Gallagher will speak to the nearly 1,000 producers who are expected to attend the annual event and provide updates regarding the dairy checkoff’s partnership, image and export activities.

Randy Mooney, NMPF chairman, will join Jerry Kozak, NMPF president and CEO, to provide updates on efforts to reform federal dairy policy and plans for 2013 and beyond. NMPF staff also will conduct a Town Hall session to

cover strategic issues, including farm policy, animal care, product safety, trade and the Cooperatives Working Together program.

The two-day general session will be hosted by Mike Adams, host of “Agri-Talk” radio. Other meeting speakers include:

• Adam Putnam, commissioner of the Florida Department of Agriculture and Consumer Services, will welcome attendees with an address;

• Dick Vitale, college basketball analyst with ABC Sports and ESPN, will share insights about tackling life’s chal-lenges head-on through lessons learned from sports — and how it can apply to business situations and daily life — at an opening luncheon;

• Stu Rothenberg, editor and publish-er of The Rothenberg Political Report and columnist with Roll Call, will offer perspective on the November elections

LA CROSSE, Wis. — The Wisconsin Cheese Industry Conference will be held here April 17-18. More than 1,400 cheese industry leaders will gather to learn about cheese technology, product safety, market-ing and dairy issues.

The conference, co-sponsored by Wisconsin Cheese Makers Association (WCMA) and the Wisconsin Center for Dairy Research (WCDR), will open April 17 with a keynote address and general session, followed by a luncheon and an tabletop

Cheese Industry Conference is April 17-18 mini-exposition. The day concludes with the auctioning of Champion Cheeses.

April 18 will consist of morning and afternoon seminars. The conference will close with the U.S. Championship Cheese Contest Reception & Awards Banquet. Tabletop exhibit spaces will be purchased online at www.cheeseconference.org beginning Oct. 16 10 a.m.

For more information contact WC-MA’s Judy Keller at 608-828-4550 or [email protected]. CMN

SHEBOYGAN FALLS, Wis. — The Professional Dairy Producers of Wis-consin (PDPW) will hold an overnight Youth Leadership Derby Nov. 3-4.

The event is designed for children ages 15-18 and includes four dairy industry tours, as well as breakout sessions with industry professionals.

The derby begins with a check-in at Sheboygan Falls High School at 9:30 a.m. and concludes at 10 a.m. Nov. 4. Registration for the event is $100 per person, and attendees will sleep in the school gymnasium for

PDPW Youth Leadership Derby is Nov. 3-4the night.

The group will stop at Cedar Val-ley Cheese, Sargento’s test kitchen, Majestic Crossing Dairy and Destell Farm. Breakout sessions will be with Cheryl Skjolaas, dairy inspector for the University of Wisconsin Center for Agricultural Safety and Health; Shane Fedin, UW-Madison; and Dr. Chris Booth, of Kettle Moraine Large Animal Clinic.

For more information or to register, visit www.pdpw.org or call 800-947-7379. CMN

Comings and goings … comings and goings

Glanbia PLC, Kilkenny, Ireland, has announced that Kevin Toland will resign as CEO and president of Glan-bia USA and Global Nutritionals at the end of 2012. He resigned from the position to become CEO of Dublin Air-port Authority. The company says that existing CEOs and management teams

will continue to run the USA Cheese and Global Nutritionals units upon To-land’s resignation.

Maria Jo Noble, Gillett, Pa., was crowned the 56th Pennsylvania Dairy Princess Sept. 22, after a three-day com-petition. Noble is the 18-year-old daugh-ter of Stuart and Elaine Noble. CMN

DAVIS, Calif. — Brian Pacheco, a fourth-generation dairyman from Kerman, Calif., has been honored by his alma mater, the University of California-Davis, with an “Award of Distinction” from the university’s College of Agricultural and Environ-mental Sciences (CA&ES).

“Award of Distinction recipients are highly accomplished, as well as infl uential in their daily lives, and we are honored by their strong connection to and support of our college,” says Mary Delany, interim CA&ES dean.

Pacheco’s business, Pacheco Dairy Inc., with 1,300 Holstein and purebred Brown Swiss cows, is a model of envi-

Pacheco to receive ‘Award of Distinction’ from University of California-Davis Oct. 18

ronmental stewardship and has been recognized as a top-producing herd in Fresno County every year since 1998.

In addition to serving as president of the Fresno County Farm Bureau, Pacheco serves on boards for the Com-munity Regional Medical Center and the Fresno Dairy Herd Improvement Association and is chairman of the board of California Dairies Inc. (CDI). Pacheco is president of the board of trustees for the Kerman Unifi ed School District, and is a member of the Nisei Farmers League, Sun-Maid Raisin Growers and Western United Dairy-men. He also has helped build support for a future dairy at UC-Davis. CMN

PEOPLE

EVENTS

Reprinted with permission from the Oct. 5, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

Page 11: Vilsack visits WDE; effects of expired farm bill are debated · Volume 32 October 5, 2012 Number 37 U.S. cheese production up 2.6 percent from year ago WASHINGTON — Total U.S. cheese

NEWS/BUSINESSOctober 5, 2012 — CHEESE MARKET NEWS® 11

FARM BILLContinued from page 1

For more information please visit www.relco.net

FARM BILL FRUSTRATION — U.S. Agriculture Secretary Tom Vilsack speaks Tuesday during the World Dairy Expo in Madison, Wis. Vilsack expressed frustration with Congress’ inability to pass a new farm bill before the current bill expired Sept. 30. According to Vilsack, if no action is seen by Jan. 1, milk prices could reach $38 to $50 per hundredweight, leading consumers to seek other beverage options. However, some dairy groups say those fears are being overplayed.

of NMPF’s Cooperatives Working Together Program, said that while a provision included in the Senate farm bill would provide basic insur-ance coverage for dairy producers, the Goodlatte/Scott provision is only free up to the fi rst 4 million pounds of coverage.

“Particularly for those larger farms wishing to grow, ‘catastrophic’ coverage leaves a signifi cant portion of their milk output uninsured, unless they want to pay for higher margin levels and/or insure more of their milk volume,” NMPF says.

NMPF also points to an analysis by Mark Stephenson with the Univer-sity of Wisconsin which shows that an insurance-only program like that proposed by Goodlatte/Scott, without supply management, results in lower all-milk prices regardless of the level of participation in the margin insurance

program for the fi rst three years.“This occurs because an insurance-

only program reduces the fi nancial risk of increasing milk production,” NMPF says. “This, in turn, slows a milk price recovery, resulting in longer periods of low prices.”

In addition, in his remarks on Tuesday, Vilsack said there was “not as much support for the Goodlatte/Scott amendment as it might appear.” He says that the amendment has lacked strong bipartisan support.

“This farm bill always will and should require a bipartisan vote,” he says.

Vilsack also expressed frustration at the lack of consensus on dairy policy within the U.S. dairy industry, particu-larly regarding the inclusion of a supply management program.

“The problem is we have not had a consensus, and that’s made it diffi cult for us to get a program that would allow some stability and some protec-tion,” Vilsack says. “There’s a high level of stress and uncertainty, but the need for action is immediate.” CMN

LEGALContinued from page 9

Minnesota law prohibits the retail sale of raw milk but allows occasional sales directly to the consumer from the farm or place where milk is produced.

Following the jury’s decision in the Hennepin County case, MDA re-leased a statement saying it strongly disagrees with the ruling.

“The law on this matter is clear, and the jury was tasked with making a narrow fi nding of whether, in their view, the state had provided suffi cient evidence to show beyond a reasonable doubt that actions of Alvin Schlangen violated state law.”

MDA adds that this narrow ruling “does not wipe away the fact that many children and adults have gotten dangerously sick from consuming raw milk. It also does not wipe away other legal rulings that have upheld MDA enforcement actions.”

Schlangen still faces a second criminal trial in Stearns County, Minn., on six misdemeanor counts for alleged violations of the Minnesota food and dairy code. A pre-trial hear-ing in the case is scheduled for Nov. 2.

Other recent legal cases involv-

ing raw milk recently concluded in California and Missouri. One included a Ventura County, Calif., farmer, Sharon Ann Palmer, who pleaded guilty to selling milk that was produced or handled in or by a dairy farm in an unsanitary condition. She was sentenced to three years of summary probation, 40 hours of community service and fi ned $1,300. Eugenie Victoria Block, a volunteer at her farm, pleaded guilty to selling unlabeled or improperly labeled food and was sentenced to two years of summary probation. (See “California dairy farmer pleads guilty in case of unlicensed milk production, sales,” in the Sept. 14, 2012, issue of Cheese Market News.)

Earlier this summer, a Missouri couple who own Bechard Family Farm reached a consent agreement with the state over a case involving the sale of raw milk in the parking lot of a natural market. The Missouri State Milk Board in 2009 brought a lawsuit against Armand and Teddi Bechard for allegedly violating a state law that prohibits the distribu-tion and sale of raw milk unless the person purchases or requests deliv-ery of raw milk or cream directly from a farm. The Bechards entered into a settlement agreement that prohibits

them from selling milk to strangers who have not previously arranged for the sale and purchase of their raw milk. (See “Bechard Family Farm reaches agreement with State of Missouri over raw milk sales” in the Aug. 31, 2012, issue of Cheese Market News.)

Herd shares, raw milk laws and regulations, and other raw milk topics will be discussed at the fourth annual International Raw Milk Symposium in Vancouver, British Columbia, Oct. 20. The event is sponsored by Cowshare Canada and the U.S.-based Weston A. Price Foundation. CMN

World Cheese Awards now accepting entriesBIRMINGHAM, England — The World Cheese Awards is now open for entries for its competition, which will culminate in a display of more than 2,500 cheeses from more than 35 countries at the BBC Good Food Show here Nov. 28-Dec. 2.

Cheesemakers can download entry forms or enter online at www.fi ne-foodworld.co.uk/wca, which has full details of classes and cheese delivery information.

More than 220 judges, including

cheese graders, retailers, chefs and buyers, will judge the competition.

Once the judges have chosen the gold medal winning cheeses, they will reas-semble in front of a packed audience for the fi nal stages of judging and the announcement of the World Champion.

For more information contact Joanne Myram, Positive PR, at [email protected], or Tortie Farrand, The Guild of Fine Food, at [email protected]. CMN

Reprinted with permission from the Oct. 5, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

Page 12: Vilsack visits WDE; effects of expired farm bill are debated · Volume 32 October 5, 2012 Number 37 U.S. cheese production up 2.6 percent from year ago WASHINGTON — Total U.S. cheese

12 CHEESE MARKET NEWS® — October 5, 2012

NEWS/BUSINESS

For more information please visit www.cheeseshredder.com

www.cheeseshredder.com

FDA portal for online registration of food facilities is not yet availableWASHINGTON — FDA recently an-nounced that the portal for the online registration process for food facilities is not yet available, though the agency expects the delay to be short.

FDA has confi rmed the steps re-quired to complete the online registra-tion process for food facilities, which were expected to begin on Monday.

The Food Safety Modernization Act (FSMA) requires U.S. food facilities to register between Oct. 1 and Dec. 31, 2012, to provide basic facility infor-mation to indicate the types of foods produced or held at each facility and to provide contact information. In draft guidance released last month, FDA pro-posed changes to the food categories, including one that will affect cheese manufacturing facilities. (See “Facility registration under FSMA starts Oct. 1”

in the Sept. 14, 2012, issue of Cheese Market News). The new registration also requires companies to provide an assurance that they will permit FDA inspections.

FDA plans to use this information, when necessary, to provide a quick and targeted response to food-related emergencies stemming from accidental or intentional contamination or adul-teration. Each facility will be required to re-register every two years.

According to Sebastian Cianci, trade press liaison with FDA, the agency is unable to provide a date by which the website will be live, but it hopes it will be soon.

Regarding the possibility of extending the Dec. 31 deadline, Cianci says “FDA is considering this issue and will announce its decision in the near future.” CMN

Three charged with cheese smuggling in CanadaST. CATHARINES, Ontario — Three men recently were arrested and charged in connection with a large-scale smug-gling scheme to distribute cheese products and other food items from the United States into Canada, according to the Niagara Regional Police Service. The investigation, which has been ongoing since January, involved investigators from the Niagara Regional Police Ser-vice, the U.S. Department of Homeland Security Border Enforcement Security Task Force (BEST) and the Canada Border Services Agency.

Those charged include Scott Heron, a constable with the Niagara Regional Po-lice Service; Casey Langelaan, a former member of the Niagara Regional Police Service; and Bernie Pollino, a resident of Fort Erie, Ontario. On June 26, Heron and Langelaan were suspended from the

Niagara Regional Police Service as the investigation proceeded. Langelaan no longer is employed by the police service.

The smuggling network involved the purchasing of cases of cheese and other food items and transporting these cases into Canada without declaring the items or paying duty. Once the products arrived in Canada, they were sorted and prepared for distribution to a number of restaurants in southern Ontario.

The investigation revealed there was signifi cant fi nancial gain poten-tial in the smuggling operation. More than $200,000 worth of cheese and other products were purchased and distributed for an estimated profi t of more than $165,000. Due to import controls and other restrictions, cheese prices in Canada are higher than cheese prices in the United States. CMN

Weighted average advertised prices for most conventional varieties of cheese increaseWASHINGTON — Higher prices are noted this period across cheese cat-egories at retail, most likely refl ecting higher wholesale cheese prices, accord-ing to the most recent National Dairy Retail Report released Thursday by USDA’s Agricultural Marketing Service (AMS).

AMS notes that retail ads continue to display dairy products with fall themed advertising centered around football and baking common.

Under conventional dairy, AMS reports that 8-ounce block natural varieties of cheese this week were at a weighted average advertised price of $2.21, up from $2.08 two weeks earlier.

This week 1-pound block natural

varieties of cheese had a weighted average advertised price of $3.66, up from $3.54 two weeks ago. Two-pound block natural varieties of cheese had weighted average advertised price of $4.75, down from $5.28 two weeks earlier.

For natural varieties of 8-ounce shreds, the weighted average advertised price this week was $2.26, up from $2.07 two weeks earlier, and natural varieties of 1-pound shreds were at a weighted average advertised price of $4.29, up from $3.67 two weeks earlier.

This week 1-pound natural varieties of conventional butter had a weighted average advertised price of $2.61, slightly down from $2.63 two weeks earlier. CMN

Alfa Laval acquires Gamajet Cleaning SystemsRICHMOND, Va. — Alfa Laval Group has announced that it has acquired Gamajet Cleaning Systems Inc., which provides tank cleaning systems and self-contained portable cleaning sys-tems for industrial and sanitary market segments.

Gamajet, which is headquartered in Exton, Pa., had sales of approximately

$75 million in 2011.Lars Renström, president and CEO

of the Alfa Laval Group says Gamajet fi ts well with the company’s ambitions and product portfolio, in particular strengthening Alfa Laval’s position in North America.

Gamajet Cleaning Systems was inte-grated into Alfa Laval in August. CMN

Obama signs CR to extend funding to MarchWASHINGTON — President Obama late last week signed a continuing resolution (CR) that will provide funding for the federal government and extend a federal pay freeze through March 27, 2013.

The $1.047 trillion temporary funding

measure was passed by Congress last month and provides discretionary spending for federal agencies, programs and services, as well as funding for FEMA’s Disaster Re-lief Fund for recovery following disasters such as the recent Hurricane Isaac. CMN

Stronger sales, traffi c bolster national RPIWASHINGTON — Buoyed by stronger same-store sales and customer traffi c lev-els, the National Restaurant Association says its Restaurant Performance Index (RPI) posted a modest gain in August.

The RPI stood at 100.6 in August, up 0.4 percent from July and the fi rst increase in fi ve months. August repre-sented the 10th consecutive month that the RPI stood above 100, which signifi es continued expansion in the index of key industry indicators.

“Growth in the RPI was driven largely by improving same-store sales and cus-tomer traffi c results in August,” says Hudson Riehle, senior vice president of the Research and Knowledge Group for the National Restaurant Association. “Six out of 10 restaurant operators reported positive same-store sales in August, while customer traffi c readings bounced back from July’s net decline.”

The Current Situation Index, which measures trends in same-store sales, traffi c, labor and capital expenditures, stood at 100.6 in August — up 0.8 percent from July’s level of 99.8.

Restaurant operators reported posi-tive same-store sales for the 15th consecutive month, with August results representing a solid improvement over the July performance. Sixty-one percent of restaurant operators reported a same-store sales gain between August 2011 and August 2012, up from 53 percent who reported positive sales in July. In com-parison, 25 percent of operators reported lower same-store sales in August, down from 36 percent in July.

Also, 47 percent of restaurant op-erators reported higher customer traffi c levels between August 2011 and August 2012, up from 35 percent who reported

positive traffi c in July. Despite the uptick in sales and cus-

tomer traffi c, 41 percent of operators say they made a capital expenditure for equip-ment, expansion or remodeling during the last three months, down from 46 percent who reported similarly last month.

The Expectations Index, which mea-sures restaurant operators’ six-month outlook for same-store sales, employees, capital expenditures and business con-ditions, stood at 100.7 in August — un-changed from July’s level.

Forty-seven percent of restaurant operators expect to have higher sales in six months (compared to the same period in the previous year), compared to 42 per-cent who reported similarly last month. Meanwhile, only 12 percent of restaurant operators expect their sales volume in six months to be lower than it was during the same period in the previous year, down slightly from 15 percent last month.

Restaurant operators are not as bull-ish about the direction of the overall economy, though their outlook improved somewhat from last month. Twenty-nine percent of restaurant operators said they expect economic conditions to improve in six months, up from 22 percent who reported similarly last month. Mean-while, 20 percent of operators said they expect economic conditions to worsen in the next six months, while 51 percent think conditions will stay about the same.

Restaurant operators’ outlook for capital spending dipped somewhat from recent months. Forty-four percent of restaurant operators plan to make a capital expenditure for equipment, expansion or remodeling in the next six months, down from 49 percent who reported similarly last month. CMN

Reprinted with permission from the Oct. 5, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

Page 13: Vilsack visits WDE; effects of expired farm bill are debated · Volume 32 October 5, 2012 Number 37 U.S. cheese production up 2.6 percent from year ago WASHINGTON — Total U.S. cheese

NEWS/BUSINESSOctober 5, 2012 — CHEESE MARKET NEWS® 13

NASSContinued from page 1

Cheddar followed with 250.7 million pounds, up 3.1 percent from August 2011. The American-type cheese pro-duction category, of which Cheddar is the largest component, was up 4.5 percent from the previous year to 353.5 million pounds in August 2012.

Wisconsin led national production with 233.7 million pounds of cheese produced in August, up 7.9 percent from its production a year earlier.

California followed with 179.7 mil-lion pounds, down 4.0 percent from its production a year earlier.

The next four cheese-producing states in August were Idaho with 71.3 million pounds, up 4.1 percent from its production a year earlier; New York with 62.9 million pounds, down 2.3 percent; New Mexico with 58.4 million pounds, up 4.0 percent; and Minnesota with 50.8 million pounds, up 8.9 percent.

NASS reports U.S. butter production in August was 129.1 million pounds, down 3.5 percent from August 2011’s 133.7 million pounds and down 3.1 percent from July 2012’s 133.2 million pounds.

California led the nation’s butter pro-duction with 44.9 million pounds in August, down 2.9 percent from a year earlier. CMN

Prices weaken in latest GlobalDairyTrade auction; Fonterra to offer bulk butter in 2013AUCKLAND, New Zealand — The trade weighted index was down 0.9 percent and most prices were down Tuesday following the latest auction on GlobalDairyTrade (GDT), Fonterra’s internet-based sales platform.

Prices rose for only two commodi-ties, buttermilk powder (BMP) and whole milk powder (WMP). The average price achieved across all contracts and contract periods for BMP was US$3,144 per metric ton FAS ($1.4261 per pound), up 4.0 percent. The average price for

WMP was US$3,309 per metric ton FAS ($1.4365 per pound), up 2.8 percent.

The average prices and percent change from last month’s trading event for all other commodities are as follows:

• Rennet casein: US$7,361 per met-ric ton FAS ($3.3389 per pound), down 9.5 percent.

• Cheddar: US$3,300 per metric ton FAS ($1.4969 per pound), down 7.4 percent.

• Anhydrous milkfat: US$2,982 per metric ton FAS ($1.3526 per pound),

down 6.4 percent.• Lactose: US$2,000 per metric ton

FAS ($0.9072 per pound), down 6.3 percent.

• Milk protein concentrate: US$5,879 per metric ton FAS ($2.6667 per pound), down 1.5 percent.

• Skim milk powder: US$3,309 per metric ton FAS ($1.5009 per pound), down 0.9 percent.

The next trading event will be held Oct. 16.

Fonterra also recently announced

that it will begin offering bulk butter on GDT beginning Feb. 19, 2013. The prod-ucts that will be offered include Fonterra Salted Creamery Butter in a 25-kilogram carton and Fonterra Unsalted Creamery Butter in a 25-kilogram carton.

This will bring the total number of products offered on GDT to nine products, which also include the currently-offered Cheddar, skim milk powder, WMP, anhydrous milkfat, lactose rennet casein, milk pro-tein concentrate and BMP. CMN

New Zealand scientists breed cow to produce high-protein, hypo-allergenic milkHAMILTON, New Zealand — New Zea-land scientists have bred the fi rst cow in the world to produce high-protein milk that may be hypo-allergenic, according to AgResearch, a government-owned re-search institute focused on supporting the New Zealand agricultural sector through scientifi c research and development.

The work by scientists at AgResearch’s Ruakura campus has been published in the American science journal Proceedings of the National Academy of Sciences (PNAS).

The AgResearch team, led by Dr. Goetz Laible, wanted to discover if they could produce milk which contained less of a particular milk protein known to be allergenic.

“We were successful in greatly reduc-ing the amount of beta-lactoglobulin (BLG), a milk whey protein which is not in human breast milk and which can cause allergic reactions,” says Dr. Stefan Wagner, one of the paper’s lead authors.

“Two or three percent of infants are al-lergic to cow’s milk, and BLG allergies make up a large part of that percentage.”

The scientists fi rst tested the process in a mouse model designed to produce the sheep form of BLG protein in mouse milk. Using a technique called RNA interference, two micro RNAs (short ribonucleic acid molecules) were then introduced into the mouse to knock down the expression of the sheep BLG protein. This resulted in a 96-percent reduction in the sheep BLG protein in mouse milk.

The scientists then produced Daisy, a female calf that was genetically engi-neered to express the same two micro RNAs, this time to target the BLG protein that also is a normal constituent in cow’s

milk. After hormonally inducing Daisy to lactate, the resulting milk had no detect-able BLG protein and also had more than twice the level of the casein proteins that normally occur in cow’s milk.

“People have long looked into reduc-ing this enigmatic protein, or completely knocking it out, because there has been no defi nitive function able to be assigned to it,” Wagner says. “So, we developed this scientifi c model to investigate the effect of knocking BLG protein out on the composition and functional proper-ties of milk, and to determine whether the absence of BLG produces cow’s milk that is hypo-allergenic.”

Wagner adds that the milk from the induced lactation that they analyzed was

only obtained in small quantities over a few days for the initial studies. The scientists now want to breed Daisy and determine the milk composition and yield from a natural lactation. In the future, the basic process of using designer micro RNAs to target other genes could provide an effi cient tool to change additional livestock traits, such as produce animals with enhanced disease resistance and/or improved lacta-tion performance, Wagner adds.

The research team included co-authors Anower Jabed, Stefan Wag-ner, Judi McCracken, David Wells and Goetz Laible. In addition to AgResearch, the work was funded by the New Zealand Ministry of Business, Innovation and Employment. CMN

Reprinted with permission from the Oct. 5, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

Page 14: Vilsack visits WDE; effects of expired farm bill are debated · Volume 32 October 5, 2012 Number 37 U.S. cheese production up 2.6 percent from year ago WASHINGTON — Total U.S. cheese

14 CHEESE MARKET NEWS® — October 5, 2012

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&ROG�6WRUDJH��&RUSRUDWH�2I¿FHV����6DOW�/DNH�&LW\��8WDK���������DFUHV�QHDU�GRZQWRZQ����$SSUR[��VSDFH���������VT��IHHW

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Reprinted with permission from the Oct. 5, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

Page 15: Vilsack visits WDE; effects of expired farm bill are debated · Volume 32 October 5, 2012 Number 37 U.S. cheese production up 2.6 percent from year ago WASHINGTON — Total U.S. cheese

NEWS/BUSINESSOctober 5, 2012 — CHEESE MARKET NEWS® 15

CHEESE/DAIRY 12•

STORAGE 13•

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WANTED: Mozzarella Cheese Manufactured in Wisconsin

We are seeking a Wisconsin Mozzarella Manufacturer to supply:��ć��������VQ��������NDU��RGT�OQPVJ��ć���ND��QT����ND��.QCXGU��ć�������VQ���2GTEGPV�(CV�%QPVGPV��ć�)WCTCPVGGF�2C[OGPV

(QT�EQPğFGPVKCN�EQPUKFGTCVKQP��RNGCUG�GOCKN�[email protected]

For more information please e-mail [email protected]

HELP WANTED 7• HELP WANTED 7•

Commodity Risk Director Little Caesar’s, home of the HOT-N-Ready® pizza, is looking for a Commodity Risk Director.

As Commodity Risk Director your primary focus will be developing and executing FRPPRGLW\�ULVN�PDQDJHPHQW�VWUDWHJLHV�IRU�GDLU\��ÀRXU��RLO�DQG�VXJDU��7KLV�SRVLWLRQ�LV� GLUHFWO\� UHVSRQVLEOH� IRU� FUHDWLQJ� DQG� H[HFXWLQJ� DFWLRQDEOH� KHGJLQJ� VWUDWHJLHV������������HVWDEOLVKLQJ� VWUDWHJLF� UHODWLRQVKLSV� ZLWK� VXSSOLHUV�� DQG� UHDFKLQJ� WDUJHWHG� TXDOLW\��FRVW�VDYLQJV�DQG�SUR¿WDELOLW\�JRDOV��7HQ�SOXV�\HDUV�FRPPRGLW\�SXUFKDVLQJ�H[SHULHQFH�UHTXLUHG��5HVWDXUDQW�LQGXVWU\�SUHIHUUHG��

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4XDOL¿HG�FDQGLGDWHV��SOHDVH�VHQG�UHVXPHV�WR�[email protected]

For more information please visit www.hilmarcheese.com

HELP WANTED 7• HELP WANTED 7•

For more information please e-mail [email protected]

Swiss Valley Farms Cooperative, a Midwest dairy manufacturer has an immediate opening for a full time salaried Warehouse Supervisor at our Luana, Iowa plant.

Responsibilities include effectively managing warehouse functions and employees to provide the highest quality products/services to all by ensuring compliance to Quality Policies/Procedures & Warehouse/Site Procedures. Coordinate warehouse activities with all departments and production activities to obtain maximum production and utilize all resources for both daily/long term objectives. Prepares/plans department budgets and forecasts department needs.

7KH�TXDOL¿HG�FDQGLGDWH�ZLOO�SRVVHVV�������%DFKHORUV�'HJUHH�SUHIHUUHG�EXW�QRW�UHTXLUHG�GHSHQGLQJ�RQ�H[SHULHQFH�������0XVW�KDYH�����\HDUV�RI�UHODWHG�VXSHUYLVRU\�H[SHULHQFH�������0XVW�KDYH�GHPRQVWUDWHG�ZRUNLQJ�NQRZOHGJH�RI�ZDUHKRXVH�RSHUDWLRQV� including and not limited to dealing with temperature sensitive products, chemicals, inventory management and rotation, coordinating inbound and outbound loads.������'HPRQVWUDWHG�ZRUNLQJ�NQRZOHGJH�RI�HOHFWURQLF�LQYHQWRU\�PDQDJHPHQW�V\VWHPV�������0XVW�SRVVHVV�OHDGHUVKLS�DELOLWLHV�WHDP�EXLOGLQJ�VNLOOV�������0XVW�KDYH�ZRUNLQJ�NQRZOHGJH�RI�0LFURVRIW�VRIWZDUH�DSSOLFDWLRQV�������$SSUR[LPDWHO\���GLUHFW�UHSRUWV�ZRUNLQJ�YDULRXV�VKLIWV�DQG�ZHHNHQGV�������6XFFHVVIXO�DSSOLFDQW�QHHGV�WR�EH�DEOH�WR�KHOS�PRYH�XV�WR�WKH�QH[W�OHYHO���������XWLOL]LQJ�,Q¿QLXP�DQG�EHVW�SUDFWLFHV�IRU�:DUHKRXVH�DQG�6XSSO\�&KDLQ�IXQFWLRQV�������0XVW�EH�ZLOOLQJ�WR�ZRUN�ÀH[LEOH�KRXUV�DV�UHTXLUHG� ,Q�UHWXUQ�6ZLVV�9DOOH\�)DUPV�&RRSHUDWLYH�ZLOO�RIIHU�������3DLG�7LPH�2II�+ROLGD\V������+HDOWK�'HQWDO�9LVLRQ�/LIH�'LVDELOLW\�)OH[����������.�

If you are interested in this position, please mail your resume and salary requirements to:

Swiss Valley Farms CooperativeAttn: Human Resources

3�2��%R[��������'DYHQSRUW��,$������e-mail: [email protected]

— EOE M/F/V/D —

Warehouse Supervisor

CHEESE/DAIRY 12•CHEESE/DAIRY 12•

For more information please visit www.cheesemarketnews.com

For more information please e-mail [email protected]

AUCTIONContinued from page 1

WAG also had its fi rst award-winning entry in the contest this year with its 40-pound Sharp Cheddar block manu-factured by Land O’Lakes, Kiel, Wis. A bidding war ensued over the cheese between Jamie Wally, vice president of

sales and marketing for WOW Logistics, and Jeff Giffi n, president and CEO of Mas-ters Gallery Foods Inc. Wally placed the winning bid of $200 per pound for a total of $8,000, the highest bid of the night.

Some of the products were combined into one lot for bidding. The fi rst place products and their bid amounts are as follows:

Lot 1: Aged Cheddar — Masters

Gallery Foods Inc., Plymouth, Wis., purchased 40 pounds of Aged Cheddar made by Land O’Lakes, Kiel, Wis., for $40 per pound, or a total of $1,600.

Lot 2: Colby, Monterey Jack, Un-fl avored Pasteurized Process Cheese and Flavored Pasteurized Process Cheese — Custom Fabricating and Repair, Marshfi eld, Wis., purchased a combined 62 pounds of Colby Jack

made by Associated Milk Producers Inc. (AMPI), Jim Falls, Wis., Pasteurized Process American Swiss Slice made by AMPI, Portage, Wis., and Pasteurized Process Cheese Food with Jalapenos made by AMPI, Portage, Wis., for $50 per pound, or total of $3,100.

Lot 3: Brick, Muenster and Fla-vored Natural Cheese — G&R Foods

Turn to RESULTS, page 16 D

Cheese Technical ManagerThe Technical Services Manager serves in a strong support/advisory role to Production Division management in areas such as establishing production procedures, enhancing production capacity and efficiency and troubleshooting problems.

Responsibilities will include:

gross margin and yield variances, while maintaining costs on the budget plan and minimizing off-specification product.

Please apply online at: www.hilmarcheese.com

— EOE —

Reprinted with permission from the Oct. 5, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

Page 16: Vilsack visits WDE; effects of expired farm bill are debated · Volume 32 October 5, 2012 Number 37 U.S. cheese production up 2.6 percent from year ago WASHINGTON — Total U.S. cheese

16 CHEESE MARKET NEWS® — October 5, 2012

NEWS/BUSINESS

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

GRAND CHAMPION GOAT — Susan Quarne, left, publisher of Cheese Market News, awards the 2012 World Dairy Expo Grand Champion Cheese and Butter Trophy to Jaimie Hoffman, center, and Adam Knapp, licensed cheesemakers for Woolwich Dairy, Lancaster, Wis. Hoffman and Knapp re-ceived the honor for their Wild Blueberry Vanilla Goat Cheese, 12 pounds of which was auctioned off Tuesday night for $85 per pound, or a total of $1,020, to Wisconsin Aging and Grading Cheese Inc.

RESULTSContinued from page 15

Inc., Reedsburg, Wis., purchased a combined 20 pounds of Muenster and Curaway Cheese both made by Mill Creek Cheese, Arena, Wis., for $40 per pound, or a total of $800.

Lot 4: Provolone and Blue Veined Cheese — T.C. Jacoby and Co., St. Louis, purchased a combined 24 pounds of Provolone made by Dairy Farmers of America, Turlock, Calif., and Point Reyes Bay Blue made by Point Reyes Farmstead Cheese, Point Reyes, Calif., for $30 for pound, or a total of $720.

Lot 5: Dark Chocolate Ice Cream, Open Class Sherbet and Open Class Ice Cream — Cooperative Resources International, Shawano, Wis., purchased a combined 39 pounds of Dark Chocolate Ice Cream made by Stewart’s Shops, Saratoga Springs, N.Y., Orange Sherbet made by Giffords Ice Cream, Skowhegan, Maine, and Graham Central Station made by Whitey’s Ice Cream, Moline, Ill., for $20 per pound, or a total of $780.

Lot 6: Swiss — Ecolab, St. Paul, Minn., purchased a 10-pound Baby Swiss Wheel made by Swiss Valley Farms, Monona, Iowa, for $55 per pound, or a total of $550.

Lot 7: Greek Yogurt, Strawberry Yogurt, Blueberry Yogurt and Open Flavor Class Yogurt — Dairy Farmers of America purchased a combined 36 pounds of Vanilla Greek Yogurt made by Commonwealth Dairy, Brattleboro, Vt., Strawberry, Blueberry and Raspberry yogurts made by Schreiber Foods, Rich-land Center, Wis., for $45 per pound, or a total of $1,620.

Lot 8: Regular, Lowfat, No Fat and Flavored Cottage Cheese — Vivolac Cultures, Greenfi eld, Ind., purchased a combined 24 pounds of Cottage Cheese made by Prairie Farms, Quincy, Ill., 2 Percent Small Curd Cottage Cheese made by Westby Coop Creamery, Westby, Wis., No Fat Cottage Cheese made by Prairie Farms Dairy, Carbondale, Ill., and Pineapple Cottage Cheese made by Upstate Niagara, Buffalo, N.Y., for $35 per pound, or a total of $840.

Lot 9: Cold Pack Cheese, Cheese Food, Cheese Spread — Cheese Market News, Middleton, Wis., purchased 12 pounds of Extra Sharp Cheddar Cold Pack made by Pine River Pre Pack, Newton, Wis., for $85 per pound, or a total of $1,020.

Lot 10: Salted, Cultured and Flavored Butter — ConAgra Foods, Omaha, Neb., purchased a combined 30 pounds of Salted Butter made by Graf Creamery, Bonduel, Wis., Organic European Style Butter made by Organic Valley, LaFarge, Wis., and Cinnamon Butter made by Ronnybrook Farm Dairy, Ancramdale, N.Y., for $30 per pound, or a total of $900.

Lot 11: Feta, Latin American Cheese and Sheep Milk Cheese — Kelman Consulting, Marshall, Wis., purchased a combined 29 pounds of Feta in Brine made by Nasonville Dairy Inc., Marshfi eld, Wis., Queso Fresco Mexi-cano made by La Vaquita Inc., Houston, and Landana Sheep Milk Gouda made by Vandersterre Groep International, the Netherlands, for $17 per pound, or a total of $493.

Lot 12: French Vanilla Ice Cream, Open Class Ice Cream and Frozen Yogurt — Wisconsin Aging and Grading Cheese, Little Chute, Wis., purchased a combined 46 pounds of French Va-nilla Ice Cream, Belgian Chocolate Ice Cream and Blueberry Granola Frozen Yogurt made by Ashby’s Sterling Ice Cream, Shelby Township, Mich., for $15 per pound, or a total of $690.

Lot 13: Strawberry Drinkable Yogurt, Strawberry/Banana Drink-able Yogurt and Open Class Drink-able Yogurt — The Insurance Center, Onalaska, Wis., purchased a combined 10 pounds of Strawberry Drinkable Yo-gurt made by Moo Cheese/Lucky Layla Farms, Garland, Texas, Strawberry Ba-nana Drinkable Yogurt made by Tropical Cheese Industries, Perth Amboy, N.J., and Pina Colada Drinkable Yogurt made by Tropical Cheese for $40 per pound, or a total of $400.

Lot 14: Southwest Sour Cream-Based Dip, Open Sour Cream-Based Dip and Ranch Sour Cream-Based Dip — Wisconsin Aging and Grading

Cheese, Little Chute, Wis., purchased a combined 12 pounds of Bison Chipotle Dip made by Upstate Niagara, Buffalo, N.Y., Bison Garlic Parmesan Dip made by Upstate Niagara and Rand Dip made by Brookshire Grocery Co., Tyler, Texas, for $35 per pound, or a total of $420.

Lot 15: Mozzarella and Fresh Moz-zarella — MCT Dairies, Millburn, N.J., purchased a combined 13 pounds of Low Moisture Whole Milk Mozzarella made by Sorrento Lactalis, Nampa, Idaho, and Mozzarella Fresca Medallion made by Lactalis, Tipton, Calif., for $75 per pound, or a total of $975.

Lot 16: Unsalted Butter, Open Class Butter and Non-Bovine Cream But-ter — Swiss Valley Farms, Davenport, Iowa, purchased a combined 48 pounds of Unsalted Butter made by Michigan Milk Producers Association (MMPA), Constantine, Mich., Unsalted Butter with Natural Flavor made by MMPA and Goat Butter made by Nordic Creamery, Westby, Wis., for $5 per pound, or a total of $240.

Lot 17: Sour Cream and Onion Sour Cream-Based Dips — Dupont Nutrition and Health, Wilmington, Del., purchased a combined 8 pounds of Sour Cream and French Onion Dip made by Westby Cooperative Creamery, Westby, Wis., for $120 per pound, or a total of $960.

Lot 18: Regular Vanilla Ice Cream, Regular Chocolate Ice Cream and Cre-ative and Innovative Products — Tour of America’s Dairyland, Wauwatosa, Wis., purchased a combined 41 pounds of Vanilla Ice Cream made by Sassy Cow Creamery, Columbus, Wis., Chocolate Ice Cream made by Sassy Cow and MALAI Cardoman Cream Ice Cream Bars made by Kaurina’s LLC, Dallas, for $25 per pound, or a total of $1,025.

Lot 19: String Cheese and Open Class Hard Cheese — Dupont Nutri-tion and Health, Wilmington, Del., pur-chased a combined 22 pounds of String Cheese and Alpha’s Morning Sun with Rosemary both made by Burnett Dairy Cooperative, Grantsburg, Wis., for $60 per pound, or a total of $1,320.

Lot 20: Open Class Semi Soft Cheese, Reduced Fat Cheese, Open Class Soft Cheese and Open Class Cheese — Wisconsin Aging and Grading Cheese, Little Chute, Wis., purchased

a combined 72 pounds of Gouda made by Babcock Hall Dairy, Madison, Wis., Reduced Fat Extra Sharp Cheddar made by Kraft Foods, Glenview, Ill., Cello Thick and Smooth Mascarpone made by Arthur Schuman, Fairfi eld, N.J., and Feta and Mediterranean Topping Tray made by Formaggio Italian Cheese, Hurleyville, N.Y., for $37 per pound, or a total of $2,664.

Lot 21: Sharp Cheddar — WOW Logistics, Appleton, Wis., purchased a 40-pound Sharp Cheddar block from Wisconsin Aging and Grading Cheese, Little Chute, Wis. (made by Land O’Lakes) for $200 per pound, or a total of $8,000.

Lot 22: Plain Cream Cheese and Flavored Cream Cheese — ConAgra Foods, Omaha, Neb., purchased a com-bined 4.5 pounds of Traditional Créme de Chevre Cheese made by Meyenberg Goat Milk Products, Turlock, Calif., and Curry Cheese Torta with Almonds and Cranberries made by Rising Sun Farms, Phoenix, Ore., for $50 per pound, or a total of $225.

Lot 23: Mixed Milk Cheese — Ag-Source LLC, Tulare, Calif., purchased 20 pounds of Sartori Limited Edition Pastorale Blend made by Sartori Co., Plymouth, Wis., for $65 per pound, or a total of $1,300.

Lot 24: Cheddar — Cargill, Wauke-sha, Wis., purchased 43 pounds of Cheddar made by Foremost Farms USA, Marshfi eld, Wis., for $45 per pound, or a total of $1,935.

Lot 25: Ice Cream Grand Champion — The Insurance Center, Onalaska, Wis., purchased 15 pounds of Grand Champion Vanilla Bean Ice Cream made by Gifford’s Ice Cream, Skowhegan, Maine, for $35 per pound, or a total of $525.

Lot 26: Grade A Grand Champion — AgSource LLC, Tulare, Calif., pur-chased 4 pounds of Grand Champion Low Fat Sour Cream made by Upstate Niagara Cooperative, Buffalo, N.Y., for $100 per pound, or a total of $400.

Lot 27: Cheese and Butter Grand Champion — Wisconsin Aging and Grading Cheese, Little Chute, Wis., pur-chased 12 pounds of Grand Champion Wild Blueberry Vanilla Goat Cheese made by Woolwich Dairy, Lancaster, Wis., for $85 per pound, or a total of $1,020. CMN

Reprinted with permission from the Oct. 5, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com