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Six Countries Ratify Trans-Pacific Trade Pact; Goes Into Effect On Dec. 30

lion pounds, up 31 percent from September 2017. During the first nine months of 2018, nonfat dry milk exports totaled 1.222 billion pounds, up 26 percent from the first nine months of 2017.

Exports of dried whey during September totaled 35.2 million pounds, down 13 percent from September 2017. Dried whey exports during the January-Sep-tember period totaled 381.2 mil-lion pounds, up 13 percent from a year earlier.

Whey protein concentrate exports during September totaled 25.9 million pounds, up 20 per-cent from September 2017. WPC exports during the first nine months of this year totaled 274.7 million pounds, 20 percent higher than during the first nine months of last year.

Lactose exports during Septem-ber totaled 68.7 million pounds, up 1 percent from September 2017. Lactose exports during the January-September period totaled 683.5 million pounds, up 18 per-cent from the same period last year.

• See Sept. Dairy Trade, p. 9

US Dairy Exports Rose 6% In Sept.; Dairy Imports Increased 13%

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CHEESE REPORTER Vol. 143, No. 20 • Friday, November 2, 2018 • Madison, Wisconsin

Cheese Production Rose 3.1% In Sept.; Butter, Dry Whey, Lactose, Yogurt Production DeclinedWashington—US cheese produc-tion during September totaled 1.057 billion pounds, up 3.1 percent from September 2017, USDA’s National Agricultural Statistics Service (NASS) reported Thursday.

During the first nine months of 2018, cheese production totaled 9.63 billion pounds, up 2.5 percent from the first nine months of 2017.

Regional cheese production in September, with comparisons to September 2017, was: Central, 483.7 million pounds, up 2 per-cent; West, 446.1 million pounds, up 7.5 percent; and Atlantic, 127 million pounds, down 6.6 percent.

September cheese production in the states broken out by NASS, with comparisons to September 2017, was: Wisconsin, 280.5 mil-lion pounds, up 2 percent; Cali-fornia, 205.5 million pounds, up 5.9 percent; Idaho, 84.9 million pounds, up 5.4 percent; New Mex-ico, 72 million pounds, up 18.9 percent; Minnesota, 59.1 million pounds, up 5.9 percent; Pennsyl-vania, 34.2 million pounds, up 2.6 percent; Iowa, 24.7 million pounds, up 31.6 percent; South Dakota, 23.6 million pounds, down 1.3 per-cent; Ohio, 20.8 million pounds, up 15.4 percent; Oregon, 17.1 mil-lion pounds up 1.6 percent; Ver-mont, 12.3 million pounds, up 2.2 percent; Illinois, 6.8 million

• See Cheese Output Up, p. 6

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Canberra, Australia—Australia on Wednesday ratified the new Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), becoming the sixth nation to approve the agreement.

The CPTPP comes into force 60 days after the sixth country ratifies it, according to Jim Carr, minister of international trade diversification in Canada, which was the fifth nation to approve the pact. New Zealand, Japan, Mexico and Singapore have also approved the agreement.

That means the CPTPP, also known as the TPP-11, will go into effect on Dec. 30, 2018.

The US was part of the origi-nal Trans-Pacific Partnership agreement which involves the above-mentioned countries along with Chile, Malaysia, Peru, Viet-

nam and Brunei Darussalam — but withdrew from that pact in January 2017.

According to the New Zealand Ministry of Foreign Affairs and Trade (MFAT), the 11 mem-bers of the CPTPP constitute approximately 13.5 percent of world GDP and are the destina-tion for approximately 31 percent of New Zealand’s goods exports. The CPTPP will provide New Zealand exporters with preferen-tial access into Japan, the world’s third largest economy, for the first time.

The CPTPP will also be New Zealand’s first trade agreement with Peru, Canada and Mexico.

Specifically for dairy, New Zealand exports to CPTPP par-ties for the year ending June 2017

• See CPTPP Ratified, p. 8

ADPI Announces New Messaging Campaign To Tout Benefits Of Dairy ProteinsElmhurst, IL—The American Dairy Products Institute (ADPI) today announced a “pan-industry” campaign to communicate positive and factual information relative to dairy ingredients and specifically dairy proteins.

ADPI’s board of directors recog-nized a void in the industry’s mes-saging and communication of dairy protein ingredients and foods and beverages. It commissioned a task force comprised of members who volunteered to evaluate the oppor-tunity and recommend an action plan.

Padilla, a public relations and communications company, and its FoodMinds division were selected

• See Dairy Protein, p. 9

September Cheese Exports Fell, Cheese Imports Rose; NDM Exports Increased 31%Washington—US dairy exports during September were valued at $430.3 million, up 6 percent from September 2017, USDA’s For-eign Agricultural Service (FAS) reported today.

Dairy exports during the first nine months of this year were val-ued at $4.196 billion, up 5 percent from the first nine months of last year.

September dairy imports were valued at $220.1 million, up 13 percent from September 2017. Dairy imports during the January-September period were valued at $2.154 billion, up 6 percent from the same period last year.

Leading markets for US dairy exports, on a value basis, during the first nine months of 2018, with comparisons to the first nine months of 2017, were: Mexico, $1.03 billion, up 3 percent; Can-ada, $481.1 million, down 2 per-cent; China, $402.4 million, down 5 percent; South Korea, $226.4

million, up 4 percent; Japan, $211.2 million, down 3 percent; Philippines, $193.2 million, up 6 percent; Indonesia, $127.5 mil-lion, up 29 percent; Australia, $120 million, down 10 percent; and Vietnam, $112.7 million, up 57 percent.

Cheese exports during Septem-ber totaled 54.1 million pounds, down 9 percent from Septem-ber 2017. Cheese exports during the first nine months of this year totaled 585.8 million pounds, up 3 percent from the first nine months of last year.

Leading destinations for US cheese exports, on a volume basis, during the January-September period, with comparisons to the same period last year, were: Mex-ico, 161.8 million pounds, down 2 percent; South Korea, 98.4 million pounds, up 10 percent; Japan, 59.7 million pounds, up 5 percent; Aus-tralia, 42.4 million pounds, down 11 percent; China, 21.8 million pounds, up 2 percent; and Chile, 17.7 million pounds, up 19 per-cent.

Nonfat dry milk exports dur-ing September totaled 115.9 mil-

CHEESE REPORTER November 2, 2018

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DICK GROVES

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608-316-3793

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Advertising & Marketing Directore-mail: [email protected]

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McNaughton, Dan Strongin, John UmhoeferYou can e-mail our contributors at: [email protected]

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Jim [email protected]

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Jamestown, MO 65046

Nebraska Cheese AssociationEd Price, Fremont, NE 68025

New York State Cheese Manufacturer’s Assn Kathyrn Boor, 11 Stocking Hall,

Cornell University, Ithaca, NY 14853

North Central Cheese Industries AssnLloyd Metzger, SDSU, Box 2104,

Brookings, SD 57007

North Dakota Cheese Makers’ AssnChuck Knetter, Medina, ND 58467

Ohio Swiss Cheese AssociationLois Miller, P.O. Box 445,Sugar Creek, OH 44681

South Dakota State Dairy AssociationHoward Bonnemann, SDSU, Box 2104,

Brookings, SD 57007

Southwestern Wisconsin Cheese Makers’ Association

Myron Olson, Chalet Cheese Coop, N4858 Cty Hwy N, Monroe, WI 53566

Wisconsin Association for Food ProtectionBob Wills

PO Box 620705, Middleton WI 53562

Wisconsin Cheese Makers’ AssociationJohn Umhoefer, 5117 W. Terrace Dr.,

Suite 402, Madison, WI 53718

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Middleton, WI 53562

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“no matter who controls the House and Senate over the next two years, trade-related legislation will be front and center as long as the trade wars with Mexico, China and other countries continue.”

Past Issues Read this week’s issue or past issues of Cheese Reporter on your mobile phone or tablet by scanning this QR code.

D I C K G R O V E S

Publisher / EditorCheese Reportere: [email protected]: @cheesereporter

EDITORIAL COMMENT

The Midterm ElectionThe US midterm election takes place on Tuesday, Nov. 6, and as usual we’ll make just one recom-mendation: Vote.

Yes, the midterm election lacks the “glamour” (or circus atmo-sphere) of a presidential election, but there’s still plenty at stake here, including all 435 seats in the US House of Representatives as well as 33 US Senate seats. Winners of those elections will be shaping (or not shaping) US policy over the next couple of years.

And what sorts of policies will they be shaping? That depends on a lot of things. From an agricul-tural perspective, one of the keys will be what happens with the farm bill. Both the House and Senate have passed their own versions of the farm bill, and that legislation is now tied up in a House-Senate conference committee.

There appear to be a couple of potential outcomes here. First, it’s possible that Congress will pass a farm bill during the lame-duck ses-sion that will take place after the election. If that’s the case, winners in next week’s election won’t have to worry about passing a farm bill.

Second, it’s possible that Con-gress won’t pass a farm bill dur-ing the lame-duck session. In that case, the farm bill process will start all over again in January, when it’s at least somewhat possible that Democrats will have control of the House (Republicans control both the House and Senate right now).

Another issue that the new Congress will likely be heavily involved in is trade. Here, there are a number of possible congres-sional actions that could impact the dairy industry.

For one thing, Congress will have to approve the new United States-Mexico-Canada Agree-ment. Negotiations between the three countries were completed over the last couple of months, but Congress reportedly won’t be tak-ing up the agreement until some-time next year. And that means it will likely be the new Congress that will be voting on the USMCA.

Congress may also attempt to have more of a say in tariff-related affairs. Legislation was introduced earlier this year that would have required congressional approval of national security-designated tariffs.

It may be recalled that the US earlier this year, citing national security concerns, imposed tar-iffs on imports of aluminum and steel. In response, retaliatory tariffs were imposed by many countries, including tariffs imposed by Mex-ico on US cheese exports.

So the legislation noted above may be of some interest to dairy and agricultural interests, and in fact the legislation has been endorsed by several agriculture organizations.

And there’s also been legislation introduced that would provide for congressional review of the imposi-tion of duties and other trade mea-sures by the executive branch.

Needless to say, no matter who controls the House and Senate over the next two years, trade-related legislation will be front and cen-ter as long as the trade wars with Mexico, China and other coun-tries continue. And we would also expect hearings to be held by both the House and Senate ag commit-tees, among other panels, on the administration’s trade policy.

One thing we won’t see no mat-ter who controls Congress over the next two years is any significant change in the direction of US trade policy. President Trump has made his policy pretty clear over his first two years in office, with actions such as withdrawing the US from the Trans-Pacific Partnership agreement and imposing tariffs on numerous countries under at least a couple of US trade regulations (Section 301 and Section 232).

In addition to trade, Congress could also consider a wide variety of food-related measures over the next couple of years. If recent his-tory is any indication, this legisla-tion could take one of three forms: bills introduced and backed by Republicans; bills introduced and backed by Democrats; and bipar-

tisan bills, an increasing rarity in today’s Washington.

For example, legislation intro-duced in both the House and Senate last year — the Codifying Useful Regulatory Definitions Act, or CURD Act, which would define the term “natural cheese” — had bipartisan sponsors and co-spon-sors in both the House and Senate.

Also enjoying bipartisan support in both the Senate and House is the Defending Against Imitations and Replacements of Yogurt, Milk, and Cheese To Promote Regular Intake of Dairy Everyday Act, bet-ter known as the DAIRY PRIDE Act, which would prohibit the sale of any food that uses the market name of a dairy product, is not the milk of a hooved animal, is not derived from such milk, and does not contain such milk as a primary ingredient.

The DAIRY PRIDE Act hasn’t gotten much traction in Congress, but the US Food and Drug Admin-istration is currently accept-ing comments on the labeling of plant-based products that include the names of dairy foods. In other words, legislation may not move in Congress but it can sometimes lead to movement within regula-tory agencies.

One bill introduced and co-sponsored only by Democrats in both the House and Senate is the Food Labeling Modernization Act of 2018. This legislation is obvi-ously going nowhere this year, but could gain some traction if Dem-ocrats take control of the House next year.

With all of this in mind, there are a couple of options for the mid-term election: vote, or don’t vote. No matter the outcome, Congress will be involved over the next two years in legislation that affects the dairy industry. If nothing else, voting in the election provides a license to complain over the next couple of years.

Cheese Reporter welcomes letters to the editor. Comments should be sent to Dick Groves, at [email protected].

CHEESE REPORTERNovember 2, 2018

For more information, visit www.tetrapakusa.com

Total Canadian Dairy Market Access Under All Trade Commitments Is About 10% Of Production; Cheese TRQs UnderfilledOttawa, Ontario—Lawrence MacAulay, Canada’s minister of agriculture and agri-food, on Mon-day announced new dairy sector working groups comprised of dairy farmers and processors.

While informal engagement has already begun with the dairy sector, the working groups bring together officials from Agriculture and Agri-Food Canada, represen-tatives from national dairy organi-zations and associations, as well as regional representatives.

The structure of the working groups is informed by consulta-tions with the Dairy Processors Association of Canada and the Dairy Farmers of Canada, and is comprised of two components:

—A working group that will collaborate to develop mitigation strategies to fully and fairly support farmers and processors to help them adjust to the short-term impacts of the United States-Mexico-Canada Agreement (USMCA). Canada’s market access for dairy in the USMCA is estimated at approxi-mately 3.59 percent of Canadian production.

This working group will also dis-cuss support to reflect the impact of the Comprehensive and Progres-sive Agreement for Trans-Pacific Partnership (CPTPP).

—A separate working group that will chart a path forward to help the dairy sector innovate and remain an important source of jobs and economic growth for future generations. Supporting expertise to the working group may also include academic leaders, as well as industry and financial experts, as necessary.

Total market access to foreign competitors for dairy under all trade commitments, including the USMCA, is estimated at approxi-mately 10 percent of Canada’s production. Canadian farmers will continue to supply the vast majority of the Canadian market, according to Agriculture and Agri-Food Canada.

Canada has also negotiated reciprocal access to the US dairy market, including ton-for-ton access for most dairy products.

“The government understands how much hard work goes into building and growing a dairy business, and we also know how important our farmers and farm businesses are to this country’s economic prosperity,” MacAulay commented. “That is why we will make sure the voices of the working

group representatives are reflected in the development of a long-term vision for the dairy sector.

Canada’s Growth SlowingNext year, Canada’s milk produc-tion is forecast to reach a record 10.115 million metric tons, almost 2 percent above the estimated level for 2018, according to a recent report from USDA’s Foreign Agri-cultural Service (FAS).

The modest increase in 2019 milk output represents a slowdown compared to the growth experi-enced since since 2014, signaling that butterfat supplies have finally caught up with increased demand. Total Canadian milk production

grew by almost 15 percent between 2014 and 2017, fueled by milk for the industrial market (factory use).

During the first half of this year, as cheese and particularly butter stocks were building, the dairy industry expressed concerns of oversupply if milk production were to continue to grow at the pace observed in 2017, FAS reported. The P5 milk boards reacted to these concerns and on two occasions, in April and in June, announced measures to signal necessary reduc-tions in milk production.

FAS forecasts Canadian cheese production at 515,000 metric tons in 2019, or 1 percent above the estimated output for 2018. Cana-dian cheese imports are forecast to reach 35,000 metric tons in 2019, based on expanded imports from the EU, as the tariff-rate

quota under the Comprehensive Economic and Trade Agreement (CETA) enters its third year.

Under the CETA, Canada pro-vided access to EU member coun-tries under two distinct TRQs: an industrial cheese TRQ and an all-cheeses TRQ.

In 2018, large volumes under both CETA cheese TRQs have gone unfilled, FAS reported. According to various industry sources, the reasons why the CETA cheese TRQs have been under-filled have primarily related to the high number of new quota holders, companies with little experience in importing cheese, and the low import allocation volumes. Indus-try sources expect TRQ fill rates to rise next year due to larger TRQ volumes and improved import experience among small firms.

Canadian Dairy Working Groups Aim To Help Industry Adjust To Trade Pacts


J O H N U M H O E F E R

Executive DirectorWisconsin Cheese Makers Association608-286-1001jumhoefer @wischeesemakers.org

The Next Wastewater Collaboration

WCMA PERSPECTIVES from our archives

50 YEARS AGONov. 1, 1968: Chicago—A standby defense food order, which is designed to guide the food industry in case of nuclear attack, has been developed by USDA’s Consumer & Marketing Service. One of the assumptions was the possibility of widespread disruption of transportation, along with radioactive fallout conditions and lack of fuel.

Washington—Sources close to FDA reported this week that food manufacturers will probably be allowed to declare the amount and type of fatty acids on food product labels in the near future. The present policy, which bans any claims for polyunsaturated fat content and has been in effect for almost a decade, will be rescinded.

25 YEARS AGONov. 5, 1993: Washington—The US Food & Drug Admin-istration this week announced that the controversial bovine somatotropin/bovine growth hormone (BST/BGH) has been approved for commercial use by dairy farmers.

Green Bay, WI—Improve-ments to the World Champion-ship Cheese Contest will add new cheeses classes and allow more cheese makers to vie for the title of World Champion. The 20th biennial contest will take place here at Lov-It Cream-ery and will feature 500-plus entries in 19 classes.

10 YEARS AGOOct. 31, 2008: Chicago—A new, voluntary front-of-pack nutrition labeling system called the Smart Choices Program was unveiled here this week at the Food & Nutrition Conference & Expo. Several major food compa-nies have already stated that they will implement the program or are likely implementers of the pro-gram. To qualify, dairy products must meet certain criteria for fat, saturated fat and sodium content.

Nashville, TN—Associated Milk Producers, Inc. of Hoven, SD, won Grand Champion and Best Italian Cheese honors here this week with a Romano entry in the National Milk Producers Fed-eration’s Cheese Contest. AMPI’s Romano earned a score of 99.70 in the Hard Italian Cheese category. Agri-Mark of Middlebury, VT, won Best Cheddar Cheese.

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In retrospect, it looks like a plan. In the last decade, Wisconsin

regulators and state industries including dairy, food, paper mills and even cities and towns, have been diligently working through new regulations and state law to effectively process wastewater. There’s progress on two key fronts, and a final challenge remains as the state seeks to harness these nutrient-laden waters.

Discharging to Surface WatersWastewater from dairy and food plant clean-up, paper processing and city sanitary systems took the spotlight in 2010 when Wisconsin Department of Natural Resources (DNR) approved stringent limits for phosphorus in treated wastewa-ter released to “surface waters” like rivers, streams and lakes.

Lengthy rulemaking yielded options for companies and cit-ies holding wastewater permits, including adaptive management and water quality trading to meet phosphorus targets. Today, 10 municipalities in Wisconsin have completed or are currently partner-ing with upstream farms and other nonpoint sources to reduce overall output of phosphorus under the adaptive management program.

Four dairy plants are among 14 permit-holders that have success-fully implemented water quality trades.

In 2013, Wisconsin’s legisla-ture approved a variance for per-mit holders because major facility upgrades to meet the tough new phosphorus limits would cause “substantial and widespread adverse social and economic impacts on a statewide basis.”

Wisconsin DNR followed with a multi-discharger variance program, approved by the US Environmen-tal Protection Agency in 2017, that allows permitted industry and municipalities to meet water quality limits for phosphorus more slowly, while paying Wisconsin counties a fee to help farms mini-mize phosphorus run-off.

Today, 47 towns and cities, four cheese factories and three other firms are using the variance.

Soil Treatment SystemsMany dairy, food and industrial companies use land-based treat-ment areas, such as dedicated spray fields or terraces or ridge and furrow systems to allow soil and plants to perform the final uptake of nutrients in treated wastewater. Since 2010, nitrogen limits for these treated waters have taken the spotlight.

Wisconsin DNR joined with WCMA and Midwest Food Prod-ucts Association in 2015 for an ambitious study to examine the fate of nitrogen in grassy spray fields and verdant ridge and fur-

row systems. The University of Wisconsin soil science professor Francisco Arriaga and his team performed ground-breaking, on-site studies of three ridge and fur-row systems and three spray fields around Wisconsin, capturing data on nitrogen after fresh applications of treated wastewater.

The study, now in final draft form, notes that soil-based waste-water treatment systems “appear to provide an effective means to treat nitrogen,” with management, com-position of wastewater and weather as factors affecting performance.

The core innovation in the study was development of cham-bers to collect air samples above dampened land – gaining deni-trification information. The final draft notes that for five days after wastewater soaked a test location, under anaerobic conditions, deni-trification increased significantly. In other words, soil microbes read-ily released nitrogen into the air.

The study should move to pub-lished form by the end of 2018.

Land ApplicationA broad, third area of wastewater disposal is incorporation of treated water onto fields, or in landfills or other sites. Land application can fortify crops and regenerate ground water, but increased urbanization and competition for useable land is challenging this common option for municipalities and industry.

WCMA recently surveyed dairy manufacturing members in Wisconsin to learn key concerns across the spectrum of surface water discharge, soil treatment sys-tems, and land application. Replies from industry found members “very concerned” with the economic and regulatory climate around all these practices. One commenter noted:

• See Umhoefer, p. 5


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UmhoeferContinued from p. 4

“Waste treatment is a signifi-cant operating expense for us. We’ve invested millions of dollars in treatment and are frustrated by the increasingly stringent limits and permit requirements.”

The highest-rated survey responses centered on land appli-cation. Members surveyed found “strong agreement” with these phrases: We are running out of land

application options as Wisconsin DNR approves fewer sites. We are running out of land

application options as Wisconsin Department of Natural Resources approves more limited application rates. We are running out of options

for disposing of brine as municipal-ities cease to accept it.

Wisconsin DNR’s interpreta-tion of NR 214 that prohibits use of manure pits creates challenges for sludge disposal.

Working together, Wisconsin regulators, municipalities and the food industry have made (expensive) headway on treat-ment of wastewater bound for soil treatment systems and sur-face waters.

The next area for cooperation is land application. Wisconsin cre-ates food for the nation and world, and further collaboration is needed to assure our vital clean-up water can be treated and returned to the land. JU

John Umhoefer has served as execu-tive director of the Wisconsin Cheese Makers Association since 1992. You can phone John at 608-286-1001; or e-mail John Umhoefer at [email protected]

Phoenix, AZ—Citing data that indicates consumers are being mis-lead about the nutritional merits of cow’s milk versus plant-based alter-natives, Jim Mulhern, president and CEO of the National Milk Producers Federation (NMPF), on Tuesday called on the US Food and Drug Administration (FDA) to end decep-tive labeling of plant-based alternatives.

“The plant-based food and beverage indus-try has used FDA inaction as a cover to sell consum-ers a product that is heav-ily processed to look like real milk, but doesn’t deliver what matters most: a con-sistent, high-quality package of nutrients,” Mulhern said at NMPF’s annual meeting here.

“This is contrary to the national goal of a healthy population and FDA’s mission to promote trans-parency and fairness,” Mulhern noted.

The consumer research will be shared with FDA as the agency solicits information on the public health implications of mislabeled, imitation dairy products. FDA is seeking comments on the label-ing of plant-based foods; the com-ment deadline is Nov. 27 (for more details, please see FDA Wants Com-ments On Labeling Of Plant-Based ‘Dairy’ Products, on page 1 of our Sept. 28th issue by scanning the QR Code on page 2 of this issue.)

In a survey by IPSOS, commis-sioned by Dairy Management Inc. (DMI):

—73 percent of consumers believed that almond-based drinks had as much or more protein per serving than milk. Milk has eight times as much protein.

—53 percent said they believed that plant-based food manu fac tu r -ers labeled their products “milk” because their nutri-tional value is similar. That is not the case.

— M i s i n -formation was more preva-lent among those who only bought plant-based drinks. Of those buy-ers, 68 per-cent strongly or somewhat

agreed those drinks have the same nutritional content as dairy milk. In reality, those beverages do not.

With media reports suggesting an increase in the number of US children suffering from nutrition-ally inadequate diets, milk label-ing “is much more than a sideshow over whether consumers can tell the difference between an almond or a cow,” Mulhern said.

Consumers deserve more respect than that, but FDA needs to help them out by clearly distinguish-ing between true milk and water-heavy, nutrition-poor imitators, Mulhern said.

“FDA needs to immediately end the application of the term ‘milk’ to non-dairy products,” he said.

USDA Seeking Offers For 15.7 Million Pounds Of Milk; Buys MozzarellaKansas City, MO—USDA’s Agri-cultural Marketing Service (AMS) on Monday issued a solicitation seeking offers for fluid milk for delivery between December 2018 and March 2019.

AMS is specifically seeking 3,770,388 pounds of 1 percent milk, 5,515,938 pounds of 2 per-cent milk, 1,293,205.5 million pounds of skim milk and 5,085,180 pounds of whole milk.

The contract type is firm fixed price.

This solicitation is structured to receive an industry standard of nine units per case configuration. AMS said it recognizes, based on industry feedback, that multiple pack size configurations exist and bidding on configurations other than the nine-unit standard is allowed.

Contractors who deliver other than nine units per case may be required to use a conversion factor calculation, provided by USDA, to align case quantities delivered for follow-on contract administration including invoicing.

Offers are due by 1:00 p.m. Cen-tral time on Tuesday, Nov. 13. For more information, contact Caro-line Russell, at (202) 720-8764; email [email protected].

The fluid milk purchases are being made under the authority of Section 32 of the Act of Aug. 24, 1935, with the purpose to encourage the continued domestic consumption of these products by diverting them from the normal channels of trade and commerce. In late September, the Agricultural Marketing Service had awarded contracts to nine companies for a total of 63 million pounds of fluid milk for delivery in October 2018 through March 2019.

Meanwhile, the Agricultural Marketing Service announced the awarding of contracts to three companies for a total of 1,572,480 pounds of Mozzarella for delivery November 16 through December 31, 2018.

The total value of this acquisi-tion is about $2.8 million.

Contracts Were AwardedAs Follows:Dairy Farmers of America: 120,960 pounds of low moisture part skim frozen 8/6-pound loaves at prices ranging from $1.5231 to $1.5297 per pound.

Leprino Foods Dairy Prod-ucts Company: 40,320 pounds of lite shredded frozen Mozzarella, 30-pound box, at $1.8155 per pound.

Saputo Cheese USA Inc.: 1,411,200 pounds of low moisture part skim shredded frozen Mozza-rella, 30-pound box, at prices rang-ing from $1.7156 to $1.8486 per pound.

Citing Consumer Data On Plant-Based Foods, NMPF Calls On FDA To End Deceptive Labeling

“The plant-based food and beverage industry has used FDA inaction as a cover to sell consumers a product that is heavily

processed to look like real milk, but doesn’t deliver

what matters most: a consistent, high-quality package of nutrients.”

—Jim Mulhern, National Milk Producers Federation


Cheese Output Up(Continued from p. 1)

pounds, down 11.4 percent; and New Jersey, 5.1 million pounds, down 1.9 percent.

American-type cheese produc-tion during September totaled 419.4 million pounds, up 3.9 per-cent from September 2017. Amer-ican-type cheese output during the January-September period totaled 3.878 billion pounds, up 2.5 per-cent from a year earlier.

September production of Amer-ican-type cheese, with comparisons to September 2017, was: Wiscon-sin, 79.9 million pounds, up 1.6 percent; California, 51.4 million pounds, up 4.5 percent; Idaho, 51.1 million pounds, up 8 percent; Oregon, 17 million pounds, up 1.5 percent; and Iowa, 15.4 million pounds, up 29 percent.

Cheddar production during September totaled 293 million pounds, up 0.4 percent from Sep-tember 2017. Cheddar output dur-ing the first nine months of 2018 totaled 2.807 billion pounds, up 0.6 percent from the first nine months of 2017.

Production of other American-type cheeses during September totaled 126.4 million pounds, up 13.1 percent from September 2017.

Italian And Other CheesesProduction of Italian-type cheese totaled 451.2 million pounds, up 4.3 percent from September 2017. Italian cheese output during the January-September period totaled 4.115 billion pounds, up 2.8 per-cent from a year earlier.

Production of Italian cheese with comparisons to September

2017, was: Wisconsin, 143.7 mil-lion pounds, up 1.4 percent; Cali-fornia, 132.8 million pounds, up 7.3 percent; Idaho, 27.7 million pounds, up 4.5; and Pennsylvania, 21.4 million pounds, up 9.2.

Mozzarella production totaled 358.2 million pounds, up 6.6 percent from September 2017. Mozz output during the first nine months of 2018 totaled 2.856 bil-lion pounds, up 3.3 percent from the first nine months of 2017.

Production of other Italian cheese varieties, with comparisons to September 2017, was: Parme-san, 29.1 million pounds, down 16.1 percent; Provolone, 33.4 million pounds, down 1 percent; Ricotta, 21 million pounds, down 0.9 percent; Romano, 3.9 million pounds, down 4.2 percent; and other Italian types, 6.7 million pounds, down 0.5 percent.

Production of other varieties, with comparisons to 2017, was: Swiss cheese: 26.8 million

pounds, up 4.6 percent. Cream and Neufchatel: 80.3

million pounds, down 8.1 percent. Brick and Muenster: 15.6

million pounds, up 5.2 percent. Hispanic cheese: 26 million

pounds, up 16 percent. Blue and Gorgonzola: 7.9

million pounds, up 14.5 percent. Feta: 9.8 million pounds,

down 2.9 percent. Gouda: 5.2 million pounds,

up 12.1 percent. All other types: 14.5 million

pounds, down 13.1 percent.

Whey Products ProductionSeptember production of dry whey, human, totaled 70.1 million pounds. Manufacturers’ stocks of

dry whey, human, at the end of September totaled 67.5 million pounds, down 36.5 percent from a year earlier and down 5.1 percent from a month earlier.

Manufacturers’ stocks of lactose, human and animal, at the end of September totaled 84.4 million pounds, down 44.8 percent from a year earlier and down 5.1 percent from a month earlier.

WPC, human and animal, out-put totaled 42.2 million pounds, up 9.1 percent from September 2017. Manufacturers’ stocks of WPC, human and animal, at the end of September totaled 58.6 million pounds, down 18.2 percent from a year earlier and down 4.3 percent from a month earlier.

Manufacturers’ stocks of WPI at the end of September totaled 25.4 million pounds, down 5.1 percent from a year earlier and down 19.7 percent from a month earlier.

Butter And Dry Product OutputSeptember butter production totaled 134.4 million pounds, down 0.1 percent from Septem-ber 2017. Butter output during the January-September period totaled 1.423 billion pounds, up 3 percent from a year earlier.

Regional butter production dur-ing September, with comparisons to September 2017, was: West, 70.5 million pounds, up 13.4 per-cent; Central, 53.5 million pounds, down 10.4 percent; and Atlantic, 10.4 million pounds, down 18.5.

NDM output was 106.3 million pounds, down 21 percent from 2017. NDM output during the first nine months of 2018 totaled 1.341 billion pounds, down 3.2 percent from the first nine months of 2017.

Manufacturers’ shipments of NDM during September totaled 117.4 million pounds, down 16.9 percent from September 2017. Manufacturers’ stocks of NDM at the end of September totaled 262.1 million pounds, down 18.3 percent from a year earlier and 6.7 percent lower than a month earlier.

September production of other dry milk products, with compari-sons to September 2017, was: skim milk powder, 48.7 million pounds, up 67.3 percent; dry whole milk, 5.9 million pounds, down 44.5 percent; milk protein concentrate, 10.1 million pounds, up 61.4 per-cent; and dry buttermilk, 7.9 mil-lion pounds, down 5.3 percent.

Yogurt And Other Dairy ProductsProduction of yogurt, plain and flavored, totaled 371.4 million pounds, down 5.6 from September 2017. Yogurt output during the first nine months of 2018 totaled 3.357 billion pounds, down 2.4 percent from that period in 2017.

Sour cream production during September totaled 107.6 million pounds, down 0.7 percent from September 2017. January-Sep-tember sour cream output totaled 1.016 billion pounds, up 0.6 per-cent from the same period in 2017.

Cream cottage cheese produc-tion in September totaled 28.6 million pounds, up 5.4 percent from September 2017. Lowfat cot-tage cheese output in September totaled 27 million pounds, down 1.6 percent from September 2017.

Production of regular ice cream totaled 58 million gallons, down 4.3 from 2017. Lowfat output totaled 34.6 million gallons, down 1.7 percent from a year earlier.

70,000

75,000

80,000

85,000

90,000

95,000

100,000

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

2018

2017

925,000

950,000

975,000

1,000,000

1,025,000

1,050,000

1,075,000

1,100,000

1,125,000


2018

Cheese Production2017 vs. 20181,000 pounds

8,000

8,500

9,000

9,500

10,000

10,500


2018

2017

305,000

325,000

345,000

365,000

385,000

405,000

425,000


2018

2017

Yogurt Production 2017 vs. 20181,000 pounds

130,000

140,000

150,000

160,000

170,000

180,000

190,000


2018

2017

Butter Production2017 vs. 20181,000 pounds

45,000

55,000

65,000

75,000

85,000


2018

2017

Ice Cream (reg. hard) Production 2017 vs. 20181,000 gallons

Dry Whey Production2017 vs. 20181,000 pounds

115,000

125,000

135,000

145,000

155,000

165,000

175,000

185,000


2018

2017

NDM Production2017 vs. 20181,000 pounds

WPI Production2017 vs. 20181,000 pounds

83,000

88,000

93,000

98,000

103,000


2018

2017

Lactose Production2017 vs. 20181,000 pounds


Phoenix, AZ—Team 2 of the Til-lamook County Creamery Associ-ation, Tillamook, OR, earned the Chairman’s Plaque here this week at the 2018 National Milk Produc-ers Federation’s (NMPF) Champi-onship Cheese Contest.

TCCA’s winning Smoked Yel-low Cheddar entry earned a score of 99.80 in the Unique or Mild Flavor category.

Team McCadam of Agri-Mark, Inc., Chateaugay, NY, won the award for Best Cheddar, and hon-ors for Best Italian Cheese went to Mike Breznak of Dairy Farmers of America (DFA), New Wilming-ton, PA, for his LMPS Mozzarella entry.

Rory Hundly of Prairie Farms Dairy, Inc., Carbondale, IL, won the award for Best Cottage Cheese with a Small Curd entry.

The contest was held in con-junction with the joint annual meeting of NMPF, National Dairy Board (NDB) and the United Dairy Industry Association (UDIA). First, second and third place entries in each of the 20 con-test classes are as follows:

Mild CheddarFirst place: Dora Brookshire, Northwest Dairy Association, Sunnyside, WA, 99.60Second place: Heritage Ridge Creamery, Michigan Milk Produc-ers, Inc., Middlebury, IN, 99.20Third place: Mark Frederixon, AMPI, Blair, WI, 98.80

Medium CheddarFirst place: Team McCadam, Agri-Mark, Inc., Chateaugay, NY, 99.50Second: Tillamook Team 1, 99.40Third place: Team Cabot, Agri-Mark, Inc., Cabot, VT 99.20

Sharp CheddarFirst place: Mark Frederixon, AMPI, Blair, WI, 98.00Second place: Team McCadam, Agri-Mark, Chateaugay, NY, 98.00Third place: Jacue Vey, Land O’Lakes, Inc., Kiel, WI, 98.00

Extra Sharp CheddarFirst place: Team 4, TCCA, 99.50Second place: Doug Snortheim, Foremost Farms USA, Marshfield, WI, 99.50Third place: Team Middlebury, Agri-Mark, Middlebury, VT, 99.50

MozzarellaFirst place: Mike Breznak, DFA, New Wilmington, PA, 98.50Second place: Team Juan Rios, DFA, Turlock, CA, 98.50Third place: Craig Schelling, Foremost Farms USA, Athens, WI, 98.50

ProvoloneFirst place: Mike Breznak, DFA, New Wilmington, PA, Mild Pro-volone, 99.10

Flavored Processed AmericanFirst place: Nick Streble, Ells-worth Cooperative Creamery, Jala-peno Pepper American, 99.50Second place: Process Loaf Team, AMPI, Portage, WI, Hot Pepper Process Cheese Food Loaf, 99.40Third place: Loaf B Shift, Bon-gards’ Creameries, Norwood, MN, Deli Loaf with Peppers, 99.10

Hot Or Spicy FlavorFirst place: Bruce Workman, Select Milk Producers, Inc., Mon-roe, WI, Rich Semi Soft Habanero Havarti, 99.50Second: Shawn Sadler, AMPI, Jim Falls, WI, Pepper Jack, 99.00Third place: Tillamook Team 2, TCCA, Boardman, OR, Habanero Jack, 99.00

Unique Or Mild FlavorFirst: Tillamook Team 2, TCCA, Smoked Yellow Cheddar, 99.80Second place: First District Asso-ciation, Litchfield, MN, Rosemary Garlic HM Cheddar, 99.50Third place: Agri-Mark, Cabot, VT, Garlic & Herb Cheddar, 99.00

Open ClassFirst place: Luana Team, Prairie Farms Dairy, Luana, IA, Neufcha-tel, 99.80Second place: Team 1, Upstate Niagara Co-op, Campbell, NY, Whole Milk Clean Deck Ricotta, 99.70Third place: Team 1, Upstate Niagara Co-op, Campbell, NY, Park Skim Clean Deck Ricotta, 99.60

Reduced FatFirst place: Clayton Team, Fore-most Farms, Clayton, WI, Reduced Fat Smoked Provolone, 97.50Second place: Team 1, TCCA, Reduced Fat Cheddar, 97.00Third place: Team Cabot, Agri-Mark, Cabot, VT, 50% Reduced Fat Jalapeno

Cottage CheeseFirst place: Rory Hundly, Prai-rie Farms Dairy, Carbondale, IL, Small Curd, 99.40Second place: Roger & Richard, Prairie Farms Dairy, Fort Wayne, IN, Small Curd, 99.30Third place: Quincy Team, Prairie Farms Dairy, Quincy, IL, 4% Small Curd, 99.20

Reduced Fat Cottage Cheese

First place winner: Rory Hundly, Prairie Farms Dairy, Carbondale, IL, 99.40Second place: Upstate Niagara Co-op, West Seneca, NY, Nonfat Small Curd, 99.30Third place: Koby/Jacob, Prairie Farms Dairy, Chandler, OK, 2% Lowfat, 99.10

Flavored Cottage CheeseFirst place: Upstate Niagara Cooperative, West Seneca, NY, 4% Small Curd Pineapple Cottage Cheese, 99.20Second place: Upstate Niagara Cooperative, West Seneca, NY, 4% Small Curd Chive Cottage Cheese, 98.90

Natural Cheese SnackFirst place: Chuck Kreye, Ells-worth Cooperative Creamery, Ells-worth, WI, Cajun Cheddar Cheese Curds, 99.50Second place: Team 1, Upstate Niagara Co-op, LMPS String Moz-zarella, 99.50Third place: Team 1, Upstate Niagara Co-op, LMPS Culture Set String Mozzarella, 98.50

Processed Cheese SnackFirst place: Luana Team, Prairie Farms Dairy, Luana, IA, Acid Set Cream Cheese Spread, 99.30Second place: Team Custom, Land O’Lakes, Spencer, WI, Queso Bravo Cheese Dip with Jalapeno & Red Peppers, 98.50.

Tillamook Tops NMPF Cheese Contest With Smoked Yellow Cheddar Entry

Second place: Foremost Farms, Clayton, WI, 98.80Third place: Mike Breznak, DFA, New Wilmington, PA, Mild Pro-volone, 98.50

Hard & Mold Ripened ItalianFirst place: Pollock Cheese Group, DFA, Pollock, SD, Parme-san, 99.70Second place: Caves of Faribault Team, Prairie Farms Dairy, Inc., Faribault, MN, AmaBlu, 99.50Third place: AMPI, Hoven, SD, Aged Parmesan, 99.20

NaturalFirst place: Bill Stocker, Mid-West Dairymen’s Company, Shullsburg, WI, Colby Jack, 99.00Second place: Shawn Sadler, AMPI, Jim Falls,WI, Colby Jack, 98.80Third place: Tillamook Team 1, TCCA, Boardman, OR, Colby Jack, 98.00

SwissFirst place: Luana Team, Prai-rie Farms Dairy, Luana, IA, Baby Swiss Wheel, 99.50Second place: Luana Team, Prai-rie Farms Dairy, Luana, IA, Swiss, 99.20Third place: Luana Team, Prairie Farms Dairy, Luana, IA, Maasdam, 98.50

Plain Processed AmericanFirst place: Nick Streble, Ells-worth Cooperative Creamery, Wohlt New London, WI, Swiss American, 99.50Second place: Bongards’ Creamer-ies, Norwood, MN, Reduced Fat/Reduced Salt, 99.30Third place: Rochester Team, Prairie Farms Dairy, Rochester, MN, Swiss American, 99.20

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RECOGNITIONTOM DORSEY, a dairy farmer from Caldwell, ID, is this year’s recipient of the Richard E. Lyng Award for his contribu-tions and service to dairy pro-motion, recognized this week by the National Dairy Promotion & Research Board (NDB). Dorsey served on the Idaho Dairy Prod-ucts Commission and the United Dairy Industry Association board for many years.

Future Farmers of America (FFA) recently honored DAIRY FARMERS OF AMERICA, INC. with a Distinguished Ser-vice Citation for outstanding contributions to FFA and agri-cultural education on a national level. DFA and its predecessor cooperatives have supported FFA for 45 years by helping fund and assist youth pursuing education and careers in agriculture. CUL-VER FRANCHISING SYSTEM of Prairie du Sac, WI, was also honored as a 2018 Distinguished Service Citation recipient.

The Grocery Manufacturers Association (GMA) announced four senior-level hires as part of its transformation under the new leadership of president and CEO GEOFF FREEMAN. BRAN-DON PARTRIDGE will join GMA mid-November as senior vice president of member engage-ment. Partridge currently serves as senior vice president, industry development at the American Frozen Food Institute. He held roles at Nestlé USA, The Tip-ton Group, the Cheese Import-ers Association of America and founded his own organic drink-able yogurts company, Skyland Foods. BETSY BOOREN will join GMA in late November as senior vice president of science and technology. She currently serves as a senior policy advisor on regulatory compliance, food safety, nutrition and related top-ics at Olsson Frank Weeda. Pre-viously, she was vice president of scientific affairs at the North American Meat Institute and president of the Foundation of Meat and Poultry Research and Education. KATIE MCBREEN joined GMA as vice president of communications and research GMA from the National Retail Federation, where she led cam-paigns around NRF’s industry and advocacy priorities. McBreen also held roles at the US Cham-ber of Commerce and the White House. KATIE DENIS is GMA’s new senior director of industry narrative, most recently working for the US Travel Association. Denis also held roles at the US Chamber of Commerce, and in the US House and Senate.

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CPTPP Ratified(Continued from p. 1)

totaled NZ$3.3 billion. Total esti-mated tariff reductions per year once the agreement is fully imple-mented are NZ$86 million.

CPTPP will provide New Zea-land improved access into the CPTPP region where current access is highly restricted by high tariffs and small quotas, MFAT noted.

Key products and markets for New Zealand dairy exports that will see tariff elimination once CPTPP is fully implemented, according to MFAT, include: a number of protein products have tariffs elimi-nated in Japan and Canada, most at entry into force; tariffs on most cheese types will be eliminated in Japan over 16 years; and tariffs on infant formula will be eliminated in Canada and Mexico.

Reflecting sensitivities among several of the parties, tariffs will not be completely eliminated on all dairy products, MFAT pointed out. Instead, quota access is pro-vided. New Zealand will have access to tariff quotas for a number of key products in Japan, Mexico and Canada. These quotas will provide New Zealand with new dairy market access to these impor-tant markets.

Prior to the North America Free Trade Agreement (NAFTA) being signed by Canada, Mexico

and the US in the 1990s, New Zea-land was a significant supplier of dairy products to Mexico, MFAT noted. Since Mexico eliminated tariffs for US dairy products, New Zealand’s share of Mexico’s cheese imports declined from 20 percent to 4 percent, and its share of milk powder imports from 25 percent to less than 10 percent.

Also under the CPTPP, Malay-sia will eliminate liquid milk tar-iffs over 16 years. During the tariff elimination period, Malaysia will provide quota access for two mil-lion liters of liquid milk to all CPTPP parties, with a zero in-quota tariff. This will be in addi-tion to the quota volumes already provided for under the Australian-ASEAN-New Zealand Free Trade Agreement and the Malaysia-New Zealand Free Trade Agreement, MFAT pointed out.

“While the agreement does not go as far as we would like in terms of dairy access, there are some use-ful gains in markets such as Japan and Mexico,” Malcolm Bailey, chairman of the Dairy Compa-nies Association of New Zealand (DCANZ), commented last Janu-ary after negotiators concluded the CPTPP agreement.

“CPTPP market access out-comes are also critical to avoid New Zealand dairy exporters end-ing up at a tariff disadvantage in key markets, including Japan,” Bai-ley added.

Canada’s Dairy TRQsUnder the CPTPP, Canada agreed to a tariff-rate quota (TRQ) for milk of an initial volume of 8,333 metric tons in year one of imple-mentation, rapidly growing to 50,000 metric tons in year six of implementation, the gradually increasing to 56,905 metric tons by year 19 of implementation, accord-ing to USDA’s Foreign Agricul-tural Service (FAS).

After that, the volume remains constant at 56,905 tons per year. Up to 85 percent of this TRQ is to be allocated to the importation of milk in bulk (not for retail sale) to be processed into dairy products which in turn are to be used as ingredients for further processing, FAS noted.

Also under the CPTPP, Canada agreed to three TRQs for cheese, which FAS said will provide the following levels of market access: An industrial cheese TRQ of

an initial volume of 1,329 metric tons in year one of implementa-tion, rapidly increasing to 7,975 tons in year six of implementation, then gradually increasing to 9,076 tons by year 19 of implementation. The cheese under this TRQ would have to be imported in bulk (not for retail sale) and used as ingredi-ents for further processing; A Mozzarella and prepared

cheese TRQ of an initial volume of 483 metric tons in year one of implementation, rapidly rising to 2,900 tons in year six, then gradu-ally increasing to 3,300 tons by year 19. An all-cheese TRQ of an ini-

tial volume of 604 tons in year one of implementation, rapidly increas-ing to 3,625 tons in year six, then gradually increasing to 4,126 tons by year 19.

Also under the CPTPP, Canada agreed to a TRQ for butter which would provide market access for an initial volume of 750 metric tons in year one of implementation, sharply increasing to 4,500 tons by year six of implementation, and then gradually increasing to 5,121 tons by year 19 of implementation.

FAS noted that, under the CPTPP, Canada agreed to a TRQ for skim milk powder which would provide market access for an initial volume of 1,250 metric tons in year one of implementation, steeply increasing to 7,500 tons by year six of implementation, and then gradually increasing to 11,014 tons by year 19 of implementation.

Dairy Farmers of Canada (DFC) was critical of the CPTPP agree-ment when negotiations con-cluded last January. The Canadian government “continues to carve out pieces of our domestic dairy market,” first through the Com-prehensive Economic and Trade Agreement (CETA) with the European Union “and now through the CPTPP,” said Pierre Lampron, DFC’s president.


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Dairy Protein(Continued from p. 1)

to work with the ADPI task force to execute a fact-based, integrated strategic digital communications program, known as the Dairy Pro-tein Messaging Initiative (DPMI).

“This Dairy Protein Messaging Initiative will be proactive and positive in its approach with the goal of providing factual infor-mation relative to the value and benefits of dairy proteins (milk proteins, whey proteins) and dairy ingredients to consumers,” said Blake Anderson, ADPI’s president and CEO.

“The campaign will be cre-ative, as we primarily need to appeal to the emotions of those consumers who are switching to alternative proteins,” Anderson continued. “Fresh messages and a new approach will be key to the success of the campaign.”

The DPMI will not malign alternative proteins nor agriculture but will refute misinformation that is often communicated by “alter-native protein” product marketers towards dairy proteins and dairy ingredients, and is both confus-ing and misleading to consumers, ADPI explained.

Many of the positive attributes of dairy proteins, backed by years

of research with qualitative and quantitative studies, are being misapplied to “alternative pro-tein” ingredients in an attempt by some marketers to have consumers believe that all proteins are equal in functionality and nutritional value, Anderson noted.

“This is just simply not true,” he pointed out. ADPI’s goal through this campaign is to provide factual information in an engaging and compelling way to enable consum-ers to make informed decisions as to their “protein of choice” relative to their health, nutrition and over-all well-being.

The Dairy Protein Messaging Initiative Task Force, comprised of key ADPI members and indus-try supporters, is already working closely with Padilla/FoodMinds in developing and testing the cam-paign’s messaging content and delivery methodologies, with a key focus on digital and social media that will target women, Millennials and “key influencers” of consum-ers, relative to food and beverage consumption.

For more information, contact Beth Holcomb, ADPI’s director of member communications, at [email protected]; or (630) 530-8700, extension 228.

For more information on ADPI, visit www.adpi.org.

Sept. Dairy Trade(Continued from p. 1)

Butter exports during Septem-ber totaled 4.4 million pounds, up 71 percent from September 2017. During the first nine months of 2018, butter exports totaled 45.7 million pounds, up 44 percent from the first nine months of 2017.

September ice cream exports totaled 10.7 million pounds, up 4 percent from September 2017. Jan-uary-September ice cream exports totaled 127.3 million pounds, up 20 percent from the same period last year.

Cheese Imports IncreaseDuring September, US cheese imports totaled 31.7 million pounds, up 12 percent from Sep-tember 2017. The value of those imports, $105.5 million, was up 20 percent.

Cheese imports during the first nine months of 2018 totaled 274 million pounds, down 4 percent from the first nine months of 2017. The value of those imports, $905.3 million, was up 13 percent.

Leading sources of US cheese imports, on a volume basis, dur-ing the first nine months of 2018, with comparisons to the first nine months of 2017, were:

Italy: 50.4 million pounds, down 8 percent.

France: 34.9 million pounds up 7 percent.

Netherlands: 21.5 million pounds, down 2 percent.

Spain: 18.8 million pounds, down 3 percent.

Germany: 14.4 million pounds, down 23 percent.

Denmark: 14 million pounds, up 37 percent.

Switzerland: 13.9 million pounds, up 15 percent.

United Kingdom: 11.8 million pounds, up 34 percent.

Norway: 11.5 million pounds, up 7 percent.

Butter Imports IncreaseDuring September, the value of other (non-cheese) US dairy imports was $114.6 million, up 7 percent from September 2017. The value of other dairy imports during the first nine months of 2018 was $1.25 billion, up 2 percent from the first nine months of 2017.

Leading sources of other US dairy imports, on a value basis, during the January-September period, with comparisons to the same period in 2017, were: New Zealand, $311 million, down 29 percent; Ireland, $230.3 million, up 51 percent; Canada, $131.5 million, up 3 percent; Mexico, $99.9 million, up 46 percent; Netherlands, $78.8 million, up 14 percent; Denmark, $53.9 million, up 8 percent; Italy, $51 million, up 12 percent; and France, $47.9 million, up 36 percent.

September imports of butter and other milkfat-based products (pri-marily anhydrous milkfat) totaled 11.7 million pounds, up 59 per-cent from September 2017. Butter imports during September totaled 9.1 million pounds, up 40 percent from September 2017.

Imports of butter and other milkfat-based products during the first nine months of 2018 totaled 82.6 million pounds, up 36 percent from the first nine months of 2017. Butter imports during the January-September period totaled 55 mil-lion pounds, up 23 percent from the same period last year.

Casein imports during Septem-ber totaled 3 million pounds, down 31 percent from September 2017. Casein imports during the first nine months of this year totaled 58.3 million pounds, down 13 per-cent from the first nine months of last year.


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Lucerne, Switzerland—A Le Gruyere d’alpage AOP by Maurice and Germain Treboux of Alpage La Bassine (meaning Basin Alpine) in Bassins, Switzerland, was named Swiss Champion here recently at the 2018 Swiss Cheese Awards.

Treboux purchased the alpine cheese plant just four years ago and this was the first time the two entered the contest.

“Just to win the category was a very big thing,” Maurice Treboux said through an interpreter here at the Swiss Champion ceremony. “But to win the contest was a big, big surprise.”

Through Treboux’s membership in Fromarte, the umbrella associa-tion for commercial milk buyers, all of Treboux’s cheese is sold before he makes it.

Fromarte develops services and solutions from which members can benefit. Smaller cheese producers can not sell their cheese through export markets nearly as well as larger producers. The activities of Fromarte form the basis for com-petitiveness and thus for the sus-tainable existence of commercial production companies.

“About 80 percent of our Swiss cheeses are exported,” said Ste-fan Truttmann, quality manager at Fromarte. “This (winning) cheese is produced in the alpine region so

there aren’t that many pounds of that cheese.”

Truttmann said the Alpage La Bassine plant is small and the Treboux’s will sell everything they make.

“I share this prize with all the Gruyere producers,” Treboux said. “The fact I won the first prize is good for all Gruyere cheese.”

Truttmann said a Gruyere win-ner is always a good winner and is also good for our exporting.

“The winner will have much acclaim here,” Truttmann said. “Normally the big retailers are interested in the Champion. But this cheese is limited in production. Still, for Gruyere made throughout the region, it’s a very big win. The fact he won the first prize is good for all Gruyere cheese.”

This is the 11th biennial Swiss Cheese Awards contest. This years’s contest brought in a record number of entries.

“The first contest we had, there were 117 cheeses and now we have 965,” said Jacques Gygax, director of Fromarte, via an interpreter.

“The contest has grown as the industry has become more creative. We added categories and have opened it up to bring in creativ-ity and innovation, new flavors. There is much creativity going on with spices and other flavors,”

Le Gruyère AOP Made At Alpage La Bassine Named Swiss Cheese Champion

Gygax added.Over 140 international judges

took part in selecting the top cheeses in 28 categories. A “Super Jury” of international judges selected the Swiss Champion.

Three US judges from Wiscon-sin took part in the Super Jury including Ron Buholzer, Klond-ike Cheese, Laura Laehn, Masters Gallery Foods, and Steve Stettler, Decatur Dairy (see more on the US Judges in Switzerland in next week’s Cheese Reporter).

“Wisconsin is a hotspot for cheese and there is a connec-tion with the World Champion-ship Cheese Contest,” Gygax said. “Also exports to the USA has grown really strongly and it’s important to market our products in the US.”

The Super Jury are expert judges who demonstrated skill through the initial judging of the 28 cate-gories, Truttmann said. The Super Jury contains only international judges. There are no Swiss judges participating.

“Our customers should decide the best cheese,” Truttmann said.

First place winners in each of the 28 contest classes include:

Emmentaler AOP: Andreas von Vyl, Kaserei Neudorf AG, Neudorf

Le Gruyere AOP: Alexandre Guex, Fromagerie Chatonnaye, Chatonnaye

Le Gruyere (Alpine) AOP: Maurice et Germain Treboux, Alpage La Bassine, Bassins

Sbrinz AOP: Martin Flueler, Flueler Milch & Kasespezialitaten, Kaserei Neuheim, Alpnach Dorf

Appenze l ler : Christ ian Tschumper, Tschumper GmbH, Kaserei Ifang, Degersheim

Rohmilch-Tilsiter: Paul Koch, Kaserei Dozwil, Dozwil

Bundner Bergkase: Dionis Zin-sli, Sennerei Sufers, Sufers

Walliser Raclette AOP: Sim-plon Valdor, Felix Arnold, Senne-rei Simplon Dorf, Simplon Dorf

Raclette & Bratkase: Giren-bader Raclette Geraucht, Christa Egli, Chasi Girenbad, Hilwil

Raclette with Flavor Added: Seiler Raclette Paprika, Felix Schibli, Seiler Kaserei AG, Sarnen

Vacherin Fribourg AOP: Lau-rent Python, Laiterie-Fromagerie Grandvillard, Grandvillard

Vacherin Mont d’Or AOP: Serge Andre, Fromagerie Andre SA, Romanel-sur-Morges

Tete de Moine AOP: Jean-Philippe Brahier, Christian Kalin SA, Le Noirmont

Bloderkase & Sauerkase AOP: Werdenberger Sauerkase AOP, Thomas Stadelmann, Kaserei Stofel AG, Unterwasser

L’Etivaz AOP: Jean-Louis Karlen, Alpage La Sottanuaz-Les Tesailles, La Lecherette VD

Berner Alpkase & Ber-ner Hobelkase AOP: Berner Hobelkase AOP, Martin Her-rmann, Alp Barwengen, Saanen

Formaggio d’Alpe Ticinese DOP: Marco Togni, Alpe Pon-tino, Airolo

Glarner Alpkase AOP: Fritz Tschudi, Alp Heuboden, Ennenda

Sheep’s Milk Cheese: Le Mar-cel, Yves Barround, Les Ateliers en Crettaz, L’Anemone, Leysin

Goat Milk Cheese: Buche Cabrifol, Benoit Kolly, Laiterie du Mouret, Ferpicloz

Fresh Cheese: Frais de Chevre, Bernard Classens, D&J Conod SA, Baulmes

Soft Bloomy Rind Cheese: Engelberger Tomme, Walter Grob, Schaukaserei Kloster Engelberg AG, Engelberg

Blue Cheese: BIO Blaui Giba, Georg Hofstetter, BIO Genuss Kaserei Hofstetter GmbH, Ruswil

Soft Washed Rind Cheese: Gailait, Agnes Spielhofer Beroud, O’Lait Sarl, St.Imier

Other Semi Hard: Heumilch Genuss, Josef Werder, Kussnachter Dorfkaserei GmbH

Semi Hard Cheese with Addi-tives: Urnascher Holzfasskase, Paul Koller, Urnascher Milchspe-zialitaten AG, Urnasch

Ubrige Hart Extrahartkase/Other Hard & Extra Hard Cheese: Schwyzer, Peter Inderb-itzin, Annen Herbert AG, Steinen

Cheese Innovations: Engelwy Tomme, Walter Grob, Schaukas-erei Kloster Engelberg AG.

For more information on any of these cheeses, contact Fromarte by visiting www.fromarte.ch.

Germain and Maurice Treboux of Alpage La Bassine took the Swiss Champion top award dur-ing the Swiss Cheese Awards held September 28-30 in Lucerne, Switzerland.


Silver Spring, MD—The US Food and Drug Administration (FDA) on Tuesday announced a new Plant and Animal Biotechnology Innovation Action Plan.

The new plan advances policy priorities that FDA will pursue to clarify its science-and-risk-based approach for product develop-ers; avoid unnecessary barriers to future innovation in animal and plant biotechnology, and advance safety and the agency’s public health mission, according to a statement from FDA Commis-sioner Scott Gottlieb and Deputy Commissioner Anna Abram.

“Innovations in plant and ani-mal biotechnology offer tremen-dous opportunities for advancing public health,” Gottlieb and Abram noted. “Promising new technologies that can edit ani-mal and plant genomes have the potential to improve human and animal health, animal well-being, food productivity and food secu-rity.

“New forms of biotechnology allow modification of living organ-isms, such as animals or plants, in order to produce a new product, such as a novel pharmaceutical, new food variety or disease-resis-tant crop,” Gottlieb and Abram continued. “These are just some of the new plant and animal-based biotechnology innovations that are opening up new opportunities to improve public health.”

FDA’s action plan works to address questions the agency regu-larly receives from biotechnology stakeholders, including developers of these products and public health interest groups. The new plan identifies priorities in three areas:

Advancing human and ani-mal health by promoting product innovation and applying modern, efficient and risk-based regula-tory pathways. FDA is commit-ted to adopting and clarifying a comprehensive policy framework for the development and oversight of animal biotechnology products, including for food and drug prod-ucts derived from intentionally genetically altered animals.

The agency’s framework, to be detailed in a set of guidance docu-ments that it intends to release over the next year, will more clearly describe how FDA is apply-ing its regulatory oversight based on the risk profile of different types of products.

FDA is establishing a new pilot program, the Veterinary Innova-tion Program (VIP), to provide assistance for developers seeking FDA approval of intentionally altered genomic DNA in animals and animal cells, tissues, and cell- or tissue-based products that pro-vide a benefit to human health,

at explaining its science-based regulatory approach, increasing understanding of its regulatory frameworks that protect public health, keeping its stakeholders informed of its ongoing work, and providing opportunities for public input.

As it adopts, clarifies, and implements its policy approaches to future plant and animal biotech-nology products, FDA will actively engage with stakeholders to ensure understanding and provide oppor-tunity for dialogue. The Food and Drug Administration also intends to perform active outreach to industry, particularly small devel-opers, animal producers and farm-ers, and other stakeholders.

And, as part of its continuous education and outreach efforts, the Food and Drug Administration will issue information on scientific and regulatory issues pertaining bo biotechnology-derived human and animal food products.

Increasing engagement with domestic and international part-ners on biotechnology issues. FDA will actively engage with its federal and international partners through coordinated and collab-orative actions to support regu-latory alignment and efficiency, and enhance regulatory science to inform its decisions. The agency will work with foreign regulatory agencies to support scientific and, where possible, regulatory align-ment regarding products of genome editing.

animal health, animal well-being, or food production.

The goal of the VIP is to facili-tate advancements in the devel-opment of innovative animal products by providing greater certainty in the regulatory pro-cess, encouraging research and development, and supporting an efficient and predictable pathway to approval for certain innovative animal products.

Next year, the Food and Drug Administration intends to publish guidance to clarify the agency’s regulatory approach to the regula-tion of intentional genomic altera-tions in animals, including through genome editing.

In the area of plant biotech-nology innovation, FDA’s policy priorities will be aimed at helping to ensure the safety of food, for humans and animals, derived from genome-edited food crops.

Strengthening public outreach and communication regarding FDA’s approach to innovative plant and animal biotechnol-ogy.The agency said it will use a robust public communications strategy, with direct support and involvement from FDA’s commis-sioner and senior agency leaders, to engage with its stakeholders on innovations in plant and animal biotechnology.

The FDA’s efforts will be aimed

FDA Launches Plan To Advance Plant, Animal Biotechnology Innovation

For more information, visit www.relco.net/cheesereporter.

Agropur Launches New Accelerator For Dairy BusinessesLongueuil, Quebec—Agropur this week announced the launch of Inno Accel, which the Cana-dian dairy cooperative describes as North America’s first accelerator for dairy businesses.

The first cohort of five young entrepreneurs from Canada and the US promises to help reinvigo-rate and reinvent dairy, Agropur said, with the support of entrepre-neur-in-residence Patrick Gagne (CEO of the OSMO Foundation), chief ambassador Jerome Ferrer (chef and co-owner of the Europea group), and a network of mentors to help propel their growth.

Inno Accel is an offshoot of the Inno Agropur Program, which Agropur describes as the largest open innovation initiative in the North American dairy industry. It matches Agropur’s resources with high-potential start-ups in order to reinvent dairy and quickly bring the most exciting innovations to market. The five North Ameri-can businesses selected for the first Inno Accel cohort are:

U Main, a Montreal company that develops do-it-yourself arti-sanal cheesemaking kits.

Cheese Grotto, a collective that makes cheese storage devices for the home to preserve fine cheeses under ideal conditions.

Sweetaly Dolceria, entrepre-neurs who make decadent desserts using simple ingredients and their Italian grandmother’s traditional recipes.

SaltiSweet Ice Cream Factory, a company that is said to be revo-lutionizing ice cream novelties by replacing the stick with a biscuit.

Peak Yogurt, cream-lovers who make triple-cream, low-sugar yogurt.

The group will spend four months at Inno Accel. Each busi-ness will be supported by two men-tors, a successful entrepreneur and a member of the Agropur execu-tive team, and some 20 coaches with different areas of expertise (marketing, sales, R&D, etc.) who will provide guidance and help them develop their enterprises in an environment that resembles real-life conditions in the business world and the food industry.

Innovation “is a necessity, even a condition for survival for the entire dairy industry. For Agropur, which is celebrating its 80th anni-versary and is resolutely turned towards the future, we absolutely have to develop new market oppor-tunities and new alliances for dairy production with partners who are characterized by their inventive-ness and agility,” said Robert Coal-lier, Agropur’s CEO.

For more information, visit www.agropur.com.


www.cheesereporter.com/events.htmSUPPLIER NEWS

COMPANY NEWS

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Educational Opportunities

Early Registration Opens For USDA’s Ag Outlook Forum Feb. 21-22 In VirginiaArlington, VA—Early registration is now open for the 95th annual Agricultural Outlook Forum tak-ing place here Feb. 21-22 at the Crystal Gateway Marriott Hotel.

This year’s forum, which is being held under the theme “Growing Locally, Selling Globally,” high-lights current issues and trends affecting agricultural production and global markets.

It’s designed to offer a platform for exchanging ideas, information and best practices among produc-ers, processors, policy makers, government officials, and non-governmental organizations, both in the US and abroad.

Concurrent sessions will explore topics such as global trade trends, innovations in agriculture, devel-opments in animal and crop biotechnology, frontiers in conser-vation, and outlooks for food and commodity markets.

An exhibit hall will showcase resources from USDA agencies and private organizations. Last year, nearly 1,600 visitors attended the forum.

“Agricultural business, research, and policy are constantly evolv-ing,” said US Secretary of Agricul-ture Sonny Perdue.

“It’s very important to get our public and private stakeholders together to make connections, share knowledge, and highlight innovations in addressing current and future challenges to agricul-ture,” Perdue said.

Speakers at the 2019 forum will include Perdue and other senior

USDA officials; guest speakers from the agricultural sector; and plenary sessions with agricultural industry leaders. USDA chief economist Robert Johansson will present the 2019 Economic Out-look for Agriculture.

USDA will also offer a pre-forum field trip for early arriv-als. This year’s trip will focus on urban agriculture, and will feature a local urban farm enterprise and a visit with scientists who conduct research on microgreens, locally adapted fruit varieties and other urban farming topics at USDA’s Beltsville Agricultural Research Center. A nominal fee covers transportation and a boxed lunch.

The early registration deadline is Jan. 28, 2019. Cost to attend is $450 before the deadline and $500 thereafter.

USDA’s Future Leaders in Agri-culture Program selects 30 under-graduate and graduate students in agriculture-related studies for a trip to Washington, DC. During their visit, students take part in a USDA briefing, discuss career opportuni-ties with agriculture leaders in aca-demia, government, and industry, attend the forum, and tour the nation’s capital.

Winners receive free registra-tion, transportation, and lodging. Applications are available online and are due Sunday, Nov. 30, 2018.

For all conference details, including registration, agenda and Future Leaders In Agriculture applications, visit www.usda.gov/oce/forum/index.htm.

Online Entry For US Championship Cheese Contest Opens Online Nov. 12Green Bay, WI—The Wiscon-sin Cheese Makers Association (WCMA) will begin accepting entries for its US Championship Cheese Contest starting Monday, Nov. 12.

The biennial contest will take place here March 5-7 at Lambeau F i e l d . Next year marks the marks the 20th edi-tion, and US dairy manufac-turers are invited to submit quality cheeses, butters, and yogurt to compete for global recognition.

The US Championship Cheese Contest hosts the awards banquet at the Cheese Industry Conference at the Alliant Energy Center in Madison, WI, on April 18, 2019. Winners receive one ticket to the banquet for each gold, silver or bronze winning product.

Contestants can enter the con-test online through the secure My Entries at www.usccc.myentries.org.

Complete entry information is now available online. For full con-test details, visit www.uschampion-cheese.org.

Nov. 12-13: PLMA Private Label Trade Show, Rosemont Convention Center, Rosemont, IL. For full details, visit www.plma.com.

•Jan. 13-15, 2019: Winter Fancy Food Show, Moscone Center, San Francisco, CA. Visit www.specialtyfood.com.

•Jan. 20-23, 2019: Dairy Forum 2019, Ritz-Carlton Grande Lakes, Orlando, FL. For more information, visit www.idfa.org.

•March 4-5: New York State Cheese Manufacturers Associa-tion Spring Meeting, Double-Tree Hotel, East Syracuse, NY. Visit www.nyscheesemakers.com.

•March 5-7: US Championship Cheese Contest, Lambeau Field, Green Bay, WI. Visit www.uschampioncheese.org.

•March 26-28: ProFood Tech, McCormick Place, Chicago, IL. For more information, visit www.profoodtech.com.

•April 17-18: Wisconsin Cheese Industry Conference, Alliant Energy Center, Madison, WI. More details available online at www.cheeseconference.org.

•April 26-May 1: NCIMS Confer-ence, Hyatt Regency St. Louis at the Arch, St. Louis, MO. Visit www.ncims.org.

•May 5-7: ADPI/ABI Joint Annual Meeting, Chicago Marriott Downtown, Chicago, IL. For details, visit www.adpi.org.

•June 2-4: IDDBA Conference & Expo, Orange County Conven-tion Center, Orlando, FL. Visit www.iddba.org for details.

•June 2-5: IFT Annual Meeting & Expo, Ernest N. Morial Conven-tion Center, New Orleans, LA. For details, visit www.ift.org.

•July 31-Aug. 3: American Cheese Society Annual Confer-ence, Richmond, VA. Visit www.cheesesociety.org.

PLANNING GUIDE

For more information, visit https://creamery.wsu.edu/upcoming


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

rvin

gth

eWorld's Dairy Industry W

eekly

Since 1876

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

1. Equipment for Sale

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

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

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

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

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

2. Equipment Wanted

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

3. Products & Services

4. Walls & Ceiling

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

5. Real Estate

SMALL CHEESE PRODUCER wishes to re-locate to a central California cheese factory. Send replies to Box J-180, c/o Cheese Reporter, 2810 Crossroads Dr., Madison, WI 53718

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

5. Real Estate

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

8. Promotion & Placement

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

7. Positions Wanted

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

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3001EW TU-WAY Exact Weight Cheese Cutter

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

10. Cheese & Dairy Products

WANTED TO BUY: 40,000 pounds of Wisconsin USDA Graded Cheddar Cheese in 40 pound blocks for dona-tion to humanitarian needs. Contact with amount available and location of cheese. For November 2 through November 8. Dairy Pricing Association Inc. will be paying $1.60 a pound and pick up date will be November 12 at seller’s location. Contact Dairy Pricing Association Inc., by telephone: (715) 284-2590 or email: [email protected]

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

11. Warehousing

FREEZER SPACE available at our warehouse facilities in Wisconsin and Utah. We have expanded and have freezer and cooler space available. Please contact Bob at MARTIN WAREHOUSING at 608-435-2029 or email at [email protected].

Gasket Materialfor the

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Call Dave Lambert at (920) 863-3306 or Dick Lambert at (920) 825-7468

GREAT LAKES SEPARATORS, INC.GREAT LAKES SEPARATORS, INC.GREAT LAKES SEPARATORS, INC.GREAT LAKES SEPARATORS, INC.P: (920) 863-3306 • F: (920) 863-6485

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Aged Wisconsin Cheddar9 - 13 years old

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DAIRY PRODUCT SALES

WEEK ENDINGStyle and Region Oct. 27 Oct. 20 Oct. 13 Oct. 6

40-Pound Block Cheddar Cheese Prices and Sales Weighted Price Dollars/PoundUS 1.6799 1.6930• 1.6790 1.6656Sales Volume PoundsUS 12,161,300 11,754,363• 11,333,574 11,305,105

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

Weighted Price Dollars/Pound US 1.4699 1.5087• 1.5273 1.5407Adjusted to 38% Moisture US 1.3990 1.4349• 1.4492 1.4604Sales Volume PoundsUS 12,012,382 12,373,280• 13,611,618 12,585,016Weighted Moisture Content PercentUS 34.86 34.81• 34.66 34.59

Butter

Weighted Price Dollars/PoundUS 2.3170 2.2648• 2.2959 2.2757Sales Volume PoundsUS 1,859,569 5,488,571• 4,451,294• 7,009,847•

Dry Whey Prices

Weighted Price Dollars/PoundsUS 0.4577 0.4533• 0.4360• 0.4420Sales Volume US 5,087,324 5,561,163• 5,692,834• 5,251,523

Nonfat Dry Milk

Average Price Dollars/PoundUS 0.8771 0.8764• 0.8733• 0.8693•Sales Volume PoundsUS 12,467,797 13,258,945• 11,711,645• 14,542,927•

Oct. 31, 2018—AMS’ National Dairy Products Sales Report. Prices included are provided each week by manufacturers. Prices collected are for the (wholesale) point of sale for natu-ral, unaged Cheddar; boxes of butter meeting USDA standards; Extra Grade edible dry whey; and Extra Grade and USPH Grade A nonforti-fied NFDM. •Revised

Class III - Cheese Milk Price 2017 2018PRICE (per hundredweight) $16.69 $15.53SKIM PRICE (per hundredweight) $7.63 $6.83

Class II - Soft Dairy Products 2017 2018PRICE (per hundredweight) $15.95 $15.54BUTTERFAT PRICE (per pound) $2.6716 $2.5621SKIM MILK PRICE (per hundredweight) $6.84 $6.81

Class IV - Butter, MP 2017 2018

PRICE (per hundredweight) $14.85 $15.01

SKIM MILK PRICE (per hundredweight) $5.72 $6.29

BUTTERFAT PRICE (per pound) $2.6646 $2.5551

NONFAT SOLIDS PRICE (per pound) $0.6357 $0.6990

PROTEIN PRICE (per pound) $2.1084 $1.7185

OTHER SOLIDS PRICE (per pound) $0.1853 $0.2553

SOMATIC CELL Adjust. rate (per 1,000 scc) $0.00086 $0.00078

AMS Survey Product Price Averages 2017 2018

Cheese, US 40-block, NASS $1.7254 $1.5686Butter, CME $2.3718 $2.2814Nonfat Dry Milk $0.8099 $0.8739Dry Whey $0.3790 $0.4470

Class Milk & Component PricesOctober 2018 with comparisons to October 2017

California 4a & 4b Milk Prices - October 2018 with comparisons to October 2017 Minimum Prices per cwt

Class Lb. Fat Lb. SNF 2017 20184a $2.4704 $0.6721 $14.51 $14.494b $2.4704 $0.7793 $16.17 $15.43

Commodity Market Prices 2017 2018Cheese, US 40-block, CME $1.7270 $1.6138AA Butter, CME $2.3480 $2.2707 Nonfat Dry Milk (low/med. heat), West, USDA $0.8133 $0.8484 Dry Whey (Mostly), West, USDA $0.3656 $0.4606

$12.00

$14.00

$16.00

$18.00

$20.00

$22.00

$24.00

2007 2010 2015 2018

October Milk Prices: Class III vs. 4b Since 2007

DAIRY FUTURES PRICESSETTLING PRICE *Cash SettledDate Month Class III* Class IV* Dry Whey* NDM* Butter* Cheese*10-26 October 18 15.53 15.03 44.700 87.300 227.500 1.568010-29 October 18 15.53 15.03 44.500 87.275 228.000 1.568010-30 October 18 15.54 15.03 44.700 87.275 228.140 1.569010-31 October 18 15.53 15.01 43.500 87.390 228.140 1.569011-1 October 18 — — — — — —10-26 November 18 15.08 14.93 45.250 87.500 225.750 1.519010-29 November 18 14.87 14.93 44.300 87.300 225.700 1.503010-30 November 18 14.77 14.93 44.000 87.250 225.700 1.494010-31 November 18 14.79 14.98 44.000 87.850 226.850 1.494011-1 November 18 14.88 15.02 44.600 88.300 228.000 1.501010-26 December 18 15.27 14.88 44.850 87.450 224.200 1.541010-29 December 18 15.13 14.85 43.900 87.650 223.900 1.531010-30 December 18 15.05 14.85 43.800 88.000 223.900 1.524010-31 December 18 15.17 14.91 44.100 88.750 224.000 1.540011-1 December 18 15.23 15.17 44.000 90.000 225.800 1.541010-26 January 19 15.19 14.83 42.600 88.500 220.400 1.550010-29 January 19 15.08 14.80 41.600 89.100 219.025 1.546010-29 January 19 15.00 14.80 41.300 89.000 219.000 1.538010-30 January 19 15.15 14.93 41.300 90.250 220.750 1.553011-1 January 19 15.19 15.06 41.625 91.875 221.750 1.553010-26 February 19 15.26 14.91 40.100 89.750 221.250 1.570010-29 February 19 15.14 14.90 39.200 90.325 220.875 1.564010-30 February 19 15.07 14.94 38.800 90.450 220.450 1.558010-31 February 19 15.21 15.07 38.825 91.250 222.250 1.573011-1 February 19 15.24 15.20 39.000 93.000 222.650 1.571010-26 March 19 15.41 15.12 38.575 91.725 224.500 1.595010-29 March 19 15.33 15.11 37.775 91.600 224.000 1.590010-30 March 19 15.27 15.17 37.300 91.550 224.000 1.585010-31 March 19 15.37 15.25 37.300 92.250 224.500 1.600011-1 March 19 15.40 15.33 37.525 94.125 224.750 1.599010-26 April 19 15.67 15.32 36.775 91.625 226.500 1.623010-29 April 19 15.59 15.31 37.225 92.800 226.000 1.618010-30 April 19 15.55 15.32 37.000 92.295 226.250 1.613010-31 April 19 15.62 15.43 37.000 93.625 226.000 1.625011-1 April 19 15.64 15.53 37.325 915.000 226.225 1.621010-26 May 19 15.80 15.59 36.000 93.625 228.500 1.644010-29 May 19 15.73 15.58 36.000 94.375 228.000 1.639010-30 May 19 15.65 15.53 36.600 93.775 227.800 1.633010-31 May 19 15.72 15.61 38.375 94.600 227.800 1.637011-1 May 19 15.73 15.71 36.250 95.425 227.800 1.640010-26 June 19 15.92 15.73 36.000 93.825 230.125 1.660010-29 June 19 15.84 15.72 36.000 94.750 229.625 1.656010-30 June 19 15.79 15.67 36.400 94.550 230.000 1.650010-31 June 19 15.83 15.75 36.400 95.550 230.000 1.654011-1 June 19 15.83 15.85 36.225 96.300 230.000 1.654010-26 July 19 16.17 15.90 36.000 94.700 232.500 1.687010-29 July 19 16.09 15.89 35.975 95.900 232.000 1.684010-30 July 19 16.06 15.84 36.375 95.700 232.200 1.684010-31 July 19 16.08 15.92 36.375 96.700 232.200 1.679011-1 July 19 16.08 16.02 36.225 97.450 232.200 1.679010-26 August 19 16.31 16.08 36.000 96.575 233.525 1.709010-29 August 19 16.39 16.07 36.500 97.625 233.025 1.709010-30 August 19 16.37 16.02 36.375 97.425 233.600 1.696010-31 August 19 16.27 16.10 36.375 98.425 233.600 1.699011-1 August 19 16.28 16.15 36.225 98.500 234.000 1.6980Interest - Nov. 1 27,485 1,915 4,065 5,857 5,810 23,889

$1.45

$1.55

$1.65

$1.75

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

40-Pound Block Avg

CME vs AMS


DAIRY PRODUCT MARKETSAS REPORTED BY THE US DEPARTMENT OF AGRICULTURE

WHOLESALE CHEESE MARKETS

WHOLESALE BUTTER MARKETS - OCTOBER 31CENTRAL: Cream supplies have dimin-ished to the point where a number of butter producers report their production, outside of micro-fixing, is nonexistent. Although bulk butter remains available, some contacts suggest supplies may be tight by the end of the year. Cream prices have trended up sharply for two consecutive weeks. Butter markets saw a boost midweek, and some contacts suggest it may have been a reac-tion to shrinking cream supplies. Market ana-lysts suggest if butter is to reach the $2.40 range, it will have to be soon as the holidays approach. They also suggest imports from Oceania may have a larger effect in 2019 than they have in recent years.

NORTHEAST: Although there are some butter operations running at capacity, while working seven-day schedules, manufactur-ers are providing mixed appraisals of butter

production efforts, due to the tightness in regional cream supplies. Some plants are having to adjust their production agendas by not churning altogether, in order to meet Class II cream needs, while others depend more on micro-fixing to fill customers’ requests due to shortages in cream ship-ments. Stocks appear balanced and are pro-jected to remain that way through year-end.

WEST: Cream is adequate supply for most churning needs, but special offers on cream loads are limited. After a flurry of activity to get butter on hand, retail orders have backed off a little as marketers wait to see how the market responds. Butter makers are eager for stores to kickstart their holiday butter promotions and make additional restock orders. Inventories are heavy but getting pulled lower as one would expect during the season.

NATIONAL - OCT. 26: Milk narratives vary when comparing the Midwest and the coastal regions. On the coasts, milk availability has grown in recent weeks and cheese production is generally stable to heavier. In the Midwest, a number of cheese contacts suggest production is lighter and milk offers remain sparse. Reported spot milk prices were few in number and ranged from $.50 to $1.50 over Class III. Demand has slipped across the nation. Although in some cases interest is steady, contacts suggest cheese markets are creating a wait-and-see, buyer friendly market. Production is mixed, but most producers suggest that stocks are starting to build across the regions. Some producers are using the slower demand season in order to build holiday inventories.

NORTHEAST- OCT. 31: Northeast milk production is flat in some areas and slightly increasing in other areas, overall taking a toll on milk availability in the region. In general, milk is in good balance in the Northeast, as loads are securing homes without tolling or cream separation. Milk volumes clearing into Class III are higher this week as other Class’ needs are slightly down. Mozzarella and Provolone production are fairly steady, and orders are very good from retail and foodservice sectors. Cheddar production is stable and retail orders are steady to increased as grocers are gearing up for holiday advertisements. Moreover, there are reports of increased cheese consumption in the US than in past years. Cheese supplies are stable in the region, and some cheese makers would like to grow their inventories in the near future.

Wholesale prices, delivered, dollars per/lb:Cheddar 40-lb blocks: $1.9475 - $2.2325 Process 5-lb sliced: $1.3700 - $1.8500Muenster: $1.9325 - $2.2825 Swiss Cuts 10-14 lbs: $3.0150 - $3.3375

MIDWEST AREA - OCT. 31: Choppy cheese markets continue to permeate the narra-tive in the Midwest. However, there was a sign of positivity midweek, as CME barrel prices jumped up to over $1.30 for the first time since mid-October, helping to bring the price gap a little closer to normal. Specialty cheese producers suggest demand is near peak ahead of the fall holidays. Mozzarella and Provolone producers also suggest demand is steady to up. Some producers report that customers who are not getting fully supplied elsewhere are call-ing them. Spot milk prices were reported from $.75 to $1.50 over Class III. Freshly produced cheese is moving well. That said, some stocks produced in previous quarters are growing.

Wholesale prices delivered, dollars per/lb: Brick 5# Loaf: $1.8550 - $2.2800 Cheddar 40# Block: $1.5825 - $1.9775Monterey Jack 10#: $1.8300 - $2.0350 Mozzarella 5-6#: $1.6550 - $2.5950 Muenster 5# $1.9300 - $2.3550 Process 5# Loaf: $1.3250 - $1.6850Grade A Swiss 6-9#: $2.5300 - $2.6475 Blue 5# Loaf: $2.1225 - $3.1925 WEST - OCT. 31: Cheese production schedules are within the norm of what the industry anticipated. With ample manufacturing milk supplies available, cheese production is ongoing. However, as the spread between cheese block and barrel remains persistently wide, some industry contacts are concerned that it may cause difficulties with producers’ cheesemaking decisions. Many plants are running close to full capacity. According to some contacts, current cheese stocks are above the previous year levels. Overall, inventories seem mixed across the region, with heavier barrels and Mozzarella supplies noted at many facilities. Cheese sales are unchanged from a week ago and mostly made on a contractual basis. Export sales to the Middle East are up.

Wholesale prices delivered, dollars per/lb: Cheddar 10# Cuts: $1.7950 - $2.0150Cheddar 40# Block: $1.6150 - $2.0575 Monterey Jack 10#: $1.8050 - $1.9650Process 5# Loaf: $1.3125 - $1.5700 Swiss 6-9# Cuts: $2.6125 - $3.0425 FOREIGN -TYPE CHEESE - OCT. 31: In the EU, the sliced cheese market is solid, characterized by inventories’ limited availability. The stocks are unlikely to recoup in the short-term. Because of lower milk output, the volumes of milk flowing to cheese manufac-turing facilities cannot be increased. Cheese prices are primarily steady. However, some occasional short-term discounted prices have been noted for block cheese sales among EU countries. Overall, processors are pleased with the sales situation as orders from both big retailers and the industry are active. There is more seasonal demand for semi-hard cheese.

Selling prices, delivered, dollars per/lb: Imported DomesticBlue: $2.6400 - 5.2300 $2.0000 - 3.4875Gorgonzola: $3.6900 - 5.7400 $2.5075 - 3.2250Parmesan (Italy): 0 $3.3900 - 5.4800Romano (Cows Milk): 0 $3.1900 - 5.3400Sardo Romano (Argentine): $2.8500 - 4.7800 0Reggianito (Argentine): $3.2900 - 4.7800 0Jarlsberg (Brand): $2.9500 - 6.4500 0Swiss Cuts Switzerland: 0 $3.0525 - 3.3750Swiss Cuts Finnish: $2.6700- 2.9300 0

DRY DAIRY PRODUCTS - NOVEMBER 1NDM - CENTRAL: Low/medium heat NDM prices held steady. Buyers are hold-ing out, as some are content with current inventories and offers are coming in from the West/Southwest to fulfill urgent spot needs. Regional producers, however, suggest their inventories are tight, and they see limited recently produced inventories in the area as potentially putting upward pressure on the markets. Undoubtedly, condensed skim availability has tightened recently, and 2019 contracts for condensed skim are not see-ing the same discounts they have in 2018. Off-grade NDM markets have been busy in recent weeks. Offers of off-grade NDM are also coming in from coastal regions and buy-ers suggest they are currently stocked.

NDM - WEST: In the west , low/medium heat NDM free on board spot prices are slightly higher on a firmer market. In the same fashion, NDM future values inched slightly up with a significant volume of con-tracts for the rest of Q4. Knowing this, several NDM customers wish to close Q1 contracts very soon as a precautionary measure for any possible increase in prices during the rest of Q4. NDM requests from cheese mak-ers and the bakery sector are active ahead

of the year-end holiday needs. Meanwhile, the Mexican demand for western NDM/SMP is robust with active exports and relatively competitive prices, which are reflected on the top of the pricing range. Unlike Mexican buyers, domestic NDM customers are not willing to pay prices close to the top of the range, at least for now. NDM - EAST: Spot market prices are within the range and mostly price series, although some traders did not purchase many loads this week. Some manufacturers are receiving steady to lower milk volumes in the plants. Low/medium NDM produc-tion schedules are steady to decreased. Yet, there are expectations drying time will increase once there is more milk availability in the region. Inventories are fairly steady, and some manufacturers’ supplies are com-mitted through the end of the year.

LACTOSE - CENTRAL & WEST: Manufacturers suggest their lactose sup-plies vary from comfortable, to snug, to over-sold through the end of the year. While some processors say demand has cooled a little bit lately, others report buyers are eager to start contracting for Q1 and 2019.

WEEKLY COLD STORAGE HOLDINGSSELECTED STORAGE CENTERS IN 1,000 POUNDS - INCLUDING GOVERNMENT

DATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BUTTER CHEESE

10/29/18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,928 86,82110/01/18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,492 83,552Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -2,564 3,269Percent Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -6 4

ORGANIC DAIRY - RETAIL OVERVIEW

The total number of conventional dairy ads increased 2 percent. The number of organic dairy ads saw a 13 percent decline. Notably, ads for each surveyed organic item showed a decrease from last week, as 4- to 6-ounce containers of organic yogurt saw the largest drop, down 67 percent. Conventional one-gallon milk container ads posted the largest increase from last week, at 563 percent. Conventional 1-pound butter ads increased 173 percent, as fall/winter holidays approach. Conventional cheese ad numbers decreased 28 percent and organic cheese ads decreased 4 percent. The average weighted price for conventional 8-ounce block cheese is $2.12, compared to $2.49 for organic. This is a $.37 organic price premium. The national weighted average advertised price for conventional milk half gallons is $1.82, compared to $3.83 for organic milk, representing an organic premium value of $2.01. Conventional milk ad numbers jumped 131 percent, while organic decreased 22 percent. Organic half-gallons of milk were the most advertised organic dairy item for the week. Total conventional yogurt ads decreased 4 percent, while organic yogurt ad numbers decreased 37 percent. The weighted average advertised price for organic plain yogurt in 4-6-ounce contain-ers is $.69, while conventional 4- to 6-ounce yogurt averages $.51, representing an organic premium of $0.18.

National Weighted Retail Avg Price: Butter 1 lb: $5.20Cheese 8 oz block: $2.79Ice Cream 48-64 oz: $4.99Yogurt 4-6 oz: $0.69Yogurt 32 oz: $3.69

Greek Yogurt 4-6 oz: $0.80Greek Yogurt 32 oz: $3.00Milk ½ gallon: $3.83Milk gallon: $5.99Milk UHT 8 oz: $1.08Sour Cream 16 oz: NA

RETAIL PRICES - CONVENTIONAL DAIRY - NOVEMBER 2Commodity

Butter 1#

Cheese 8 oz block

Cheese 1# block

Cheese 2# block

Cheese 8 oz shred

Cheese 1# shred

Cottage Cheese

Cream Cheese

Flavored Milk ½ gallon

Flavored Milk gallon

Ice Cream 48-64 oz

Milk ½ gallon

Milk gallon

Sour Cream 16 oz

Yogurt (Greek) 4-6 oz

Yogurt (Greek) 32 oz

Yogurt 4-6 oz

Yogurt 32 oz

US NE SE MID SC SW NW

3.43 3.92 3.71 2.61 2.97 3.13 2.69

2.12 2.16 2.34 1.97 1.90 1.97 1.88

3.58 3.24 NA NA 5.49 NA NA

3.37 3.50 NA NA 5.00 NA 5.76

2.22 2.23 2.28 2.13 2.15 2.26 1.94

3.28 3.19 NA NA 3.99 NA NA

1.99 2.21 1.97 2.11 2.00 1.37 NA

1.81 1.32 1.97 2.25 1.69 1.84 NA

2.38 3.49 NA 1.89 NA NA 2.50

2.41 3.99 1.98 2.99 NA 1.99 1.99

3.16 2.68 3.31 3.37 3.00 2.95 2.79

1.82 2.91 1.94 1.76 1.32 NA .99

2.10 1.99 2.39 1.89 1.87 2.41 2.04

1.67 1.82 1.74 1.28 1.57 1.56 1.49

.96 .93 .99 .98 .96 .93 .89

4.19 4.57 3.99 3.99 NA 3.49 NA

.51 .51 .51 .52 .50 .58 .47

2.40 2.23 2.23 2.50 NA 2.50 NA

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

NATIONAL - CONENTIONAL DAIRY PRODUCTS


CME CASH PRICES - OCT. 29 - NOV. 2, 2018Visit www.cheesereporter.com for daily prices

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

MONDAY $1.2325 $1.5150 $2.2250 $0.8675 $0.4700October 29 (-1¾) (NC) (-¾) (NC) (NC)

TUESDAY $1.2475 $1.5125 $2.2250 $0.8675 $0.4525October 30 (+1½) (-¼) (NC) (NC) (-1¾)

WEDNESDAY $1.3300 $1.4750 $2.2800 $0.8800 $0.4500October 31 (+8¼) (-3¾) (+5½) (+1¼) (-¼)

THURSDAY $1.3750 $1.4550 $2.3000 $0.8925 $0.4475November 1 (+4½) (-2) (+2) (+1¼) (-¼)

FRIDAY $1.3400 $1.4575 $2.3000 $0.9000 $0.4450November 2 (-3½) (+¼) (NC) (+¾) (-¼)

Week’s AVG $1.3050 $1.4830 $2.2660 $0.8815 $0.4530Change (+0.0705) (-0.0095) (+0.0470) (+0.0125) (-0.0330)

Last Week’s $1.2345 $1.4925 $2.2190 $0.8690 $0.4860AVG

2017 AVG $1.7225 $1.7450 $2.2430 $0.7300 NASame Week

MARKET OPINION - CHEESE REPORTER

WHEY MARKETS - OCT. 29 - NOV. 2, 2018

Cheese Comment: No blocks were sold Monday, and the price was unchanged at $1.5150. No blocks were sold again on Tuesday; the price declined on an uncov-ered offer of 1 car at $1.5125. Five cars of blocks were sold Wednesday, the last at $1.4750, which set the price. Eight cars of blocks were sold Thursday, the last at $1.4550, which set the price. On Friday, 1 car of blocks was sold at $1.4575, which raised the price. The barrel price dropped Monday on sales of 2 cars at $1.2325, increased Tuesday on an unfilled bid for 1 car at $1.2475, jumped Wednesday on a sale at $1.3300, rose Thursday on an unfilled bid for 1 car at $1.3750, then fell Friday on a sale at $1.3400.

Butter Comment: The price fell Monday on a sale of 1 car at $2.2250, jumped Wednesday on sales of 3 cars at $2.2800, and rose Thursday on sales of 3 cars at $2.3000.

NDM Comment: The price increased Wednesday on sales of 4 cars at 88.0 cents, rose Thursday on the sale of 1 car at 89.25 cents, and increased Friday on a sale at 90.0 cents.

Dry Whey Comment: The price declined Tuesday on sales of 2 cars at 45.25 cents, fell Wednesday on the sale of 1 car at 45.0 cents, dropped Thursday on sales of 6 cars at 44.75 cents, and fell friday on sales of 3 cars at 44.5 cents.

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

‘10 14.50 14.28 12.78 12.92 13.38 13.62 13.74 15.18 16.26 16.94 15.44 13.83‘11 13.48 17.00 19.40 16.87 16.52 19.11 21.39 21.67 19.07 18.03 19.07 18.77‘12 17.05 16.06 15.72 15.72 15.23 15.63 16.68 17.73 19.00 21.02 20.83 18.66‘13 18.14 17.25 16.93 17.59 18.52 18.02 17.38 17.91 18.14 18.22 18.83 18.95‘14 21.15 23.35 23.33 24.31 22.57 21.36 21.60 22.25 24.60 23.82 21.94 17.82‘15 16.18 15.46 15.56 15.81 16.19 16.72 16.33 16.27 15.82 15.46 15.30 14.44 ‘16 13.72 13.80 13.74 13.63 12.76 13.22 15.24 16.91 16.39 14.82 16.76 17.40‘17 16.77 16.88 15.81 15.22 15.57 16.44 15.45 16.57 16.36 16.69 16.88 15.44‘18 14.00 13.40 14.22 14.47 15.18 15.21 14.10 14.95 16.09 15.53

RELEASE DATE - NOVEMBER 1, 2018

Animal Feed Whey—Central: Milk Replacer: .2600 (NC) – .4200 (NC)

Buttermilk Powder: Central & East: .8800 (NC) – .9650 (+1½) West: .8200 (NC) – .9500 (NC) Mostly: .8500 (NC) – .9200 (+2)

Casein: Rennet: 2.4200 (NC) – 2.7800 (+22) Acid: $3.0600 (-3) - $3.2000 (NC)

Dry Whey—Central (Edible): Nonhygroscopic: .3600 (NC) – .5200 (-3) Mostly: .4400 (NC) – .4700 (NC)

Dry Whey–West (Edible): Nonhygroscopic: .4075 (-1¼) – .5850 (+1½) Mostly: .4250 (-2½) – .5000 (NC)

Dry Whey—NE: .4525 (+1½) – .5025 (-4¾)

Lactose—Central and West: Edible: .3000 (+1) – .4500 (NC) Mostly: .3100 (NC) – .3850 (NC)

Nonfat Dry Milk —Central & East: Low/Medium Heat: .8350 (NC) – .9300 (NC) Mostly: .8800 (NC) – .9200 (NC) High Heat: .9800 (NC) – 1.0500 (NC)

Nonfat Dry Milk —Western: Low/Medium Heat: .8300 (+1) – .9450 (+1½) Mostly: .8700 (+1) – .9200 (+1) High Heat: 1.0000 (NC) – 1.0800 (NC)

California Weighted Average NFDM: Price Total Sales October 26 $0.8517 8,519,310 October 19 $0.8526 8,117,971 Whey Protein Concentrate—Central and West: Edible 34% Protein: .7900 (+2) – 1.0375 (NC) Mostly: .8000 (NC) – .9350 (NC)

Whole Milk—National: 1.5000 (NC) – 1.6500 (NC)

Visit www.cheesereporter.com for dairy and historical cheese, butter, and whey prices

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Restaurant Performance Index Dips, Softer Traffic Reported Washington—The US restaurant industry experienced softer sales in September as both same-store sales and customer traffic eased off their positive August levels.

The National Restaurant Asso-ciation released its monthly Res-taurant Performance Index (RPI) Wednesday. September’s RPI stood at 101.1, down 0.9 percent from August. The decline was mainly the result of a pullback in the cur-rent situation indicators.

Restaurant operators are some-what less bullish about sales growth, with their six-month out-look representing the weakest in a year. In addition, 23 percent of operators expect economic condi-tions to worsen in six months – the highest level in two years.

The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capi-tal expenditures), stood at 100.6 in September, down 1.7 percent from August.

Restaurant operators overall reported dampened same-store sales in September. Forty-six percent of restaurant operators reported a

same-store sales increase between September 2017 and September 2018, down from 58 percent who reported higher sales in August.

Thirty-seven percent of opera-tors reported a sales decline in Sep-tember, up from just 21 percent in August. Although same-store sales remained positive overall, Septem-ber represented the weakest perfor-mance since April.

Restaurant operators also reported softer customer traffic results in September. Twenty-eight percent of restaurant operators reported an increase in customer traffic between September 2017 and September 2018, down from 43 percent in August.

Forty-two percent of operators reported a decline in customer traffic in September, up from 30 percent who reported similarly in August. September represented the fifth time in the last six months that restaurant operators reported a net decline in customer traffic.

The Expectations Index, which measures restaurant oeprators’ six-month outlook in four indus-try indicators (same-store sales, employees, capital expenditures and business conditions), stood at 101.6, down slightly from August.

The level of the Expectations Index implies that restaurant oper-ators still anticipate improving business conditions in the coming months, the association noted.

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