By Alyssa Sowerwine

MADISON, Wis. — Conventional wisdom says that wine and cheese go hand in hand. But as the “fine food” movement continues to gain momentum in the United States, consumers are eager to try other food pairings, and one quickly gaining popularity nationwide is pairing craft beer with artisan cheese.

“Beer and cheese pairing has a long history regionally and on the farm, but not nationwide,” says Suzy Badaracco, president of Culinary Tides, Portland, Ore., which tracks the movement of certain industries to forecast influences on food, flavor and health trends.

“Americans are more versed with food and wine pairings, so beer and cheese pairings are at an infant stage in comparison,” Badaracco explains.

Badaracco says it’s indicative of a larger movement to begin pairing beer with all kinds of food. The pairing trend in general has really taken off, as consumers are becoming more comfortable expanding their tastes and experimenting with different flavors, she says.

She adds that for many people, beer is somewhat less intimidating than wine.

“A lot of people are intimidated when trying to pick the right wine for pairing,” Badaracco says. “Beer is just a more friendly beverage to the average consumer. People seem to be less reluctant to ask questions and learn about beer.”

Badaracco also notes that the growing popularity of beer and cheese as compared to wine and cheese could be indicative of the economic environment.

“Generally, most beer is cheaper than most wine, and beer is a real comfort item for many people,” she says.

One key to spreading the word on the possibilities that lie within beer and cheese pairing is education. Classes on beer and cheese pairings, as well as beer and cheese festivals and events, are popping up across the country.

This Saturday in Madison, Wis., Wisconsin cheesemakers and several Wisconsin breweries are teaming up for the first Isthmus Beer and Cheese Fest.

While the festival was launched in response to the growing popularity of beer and cheese pairings, this year the cheese booths and beer booths will be in separate areas, says Sara Hill, culinary manager of cheese education, Wisconsin Milk Marketing Board (WMMB).

“It’s the first year, so I think people want to see how things go,” Hill says.

Hill will be leading a seminar on beer and cheese pairings at the show featuring beer from New Glarus Brewing Co., New Glarus, Wis.

Hill also has led classes on beer and cheese pairing at Sprecher Brewing Co. in Milwaukee.

In addition to its standard brewery tours, Sprecher each weekend has been offering a premium tasting of 10 craft beers and 10 cheeses for $15.

“I had been wanting to find a way to have a more upscale tasting to showcase some of our better products,” says Jeff Hamilton, vice president and general manager, Sprecher Brewing Co.

Some of the pairings include Sprecher’s Pub Brown Ale with Decatur Dairy’s Havarti Horseradish and Chive; India Pale Ale with Roth Käse’s Grand Cru Gruyere; and Abby Triple with Sartori’s Merlot BellaVitano.

Consumer response to the premium tastings has been so positive that Sprecher started selling cheese in its store, says Anne Sprecher, public relations director, Sprecher Brewing Co. Customers who pay for the tasting get 10 percent off the beers and cheeses they tried.

“People love it — almost everyone that goes through it buys something,” Hamilton says.

“We have all these incredible Wisconsin cheesemakers, and these cheeses should be showcased,” Sprecher adds. “What we’ve got here in terms of beer and cheese, you can’t find in every state.”

Still, the pairing trend isn’t confined to the Midwest.

At Murray’s Cheese Shop in New York City, classes on beer and cheese pairings have been offered for the past five years.

“We’ve been trying to open people’s eyes to the world of alternative beverage pairings,” says Taylor Cocalis, director of education, Murray’s Cheese. “Ninety percent of the folks that walk through the door automatically assume that wine and cheese are the ultimate pairing partners, but we’re advocates of opening everyone’s eyes to the world of beer.”

The first classes were spearheaded by Garrett Oliver, brewmaster at Brooklyn Brewery, Cocalis says. Classes have ranged from “Beer Basics and Cheese Pairing Principles” to regional offerings such as “Italian Beer and Cheese,” she says.

Cocalis says she likes the classes because they bring an engaging crowd.

“Anyone will sign up for a wine and cheese class, as it’s a bit more mainstream, but when most people hear beer and cheese, they assume Budweiser, and that’s just not the case,” she says. “We get home brewers, beer advocates and aficionados. It’s great to see so many people savoring the complex offerings that are popping up around the city.”

Cocalis says that in five years, she thinks beer and cheese pairing may even surpass wine and cheese pairing in popularity.

“Especially in the past year, we’ve seen a huge move toward beer, mainly because there’s more value in it,” she says. “The most expensive beers in the world are usually $30-$40 tops, whereas wine can set you back a few hundred, if not thousand, dollars.”

Cocalis says the increased interest in beer stems from several factors, including the increasing number of micro breweries in the United States and, therefore, increasing availability of good beers.

At Marin French Cheese Co., Petaluma, Calif., Maxx Sherman, sales and marketing manager, Marin French Cheese, says Marin has paired several of its artisan cheeses with beer from the nearby Lagunitas Brewing Co.

“As the popularity of California cheeses has increased with lighting speed, so have the associations and pairings with other foods,” Sherman says. “We now are seeing a major trend of California artisan cheeses being invited to beer festivals, and specially-arranged beer and cheese tastings.”

Sherman says at one time the beverage of choice with cheese was wine, but now more and more people are finding that the flavor attributes of certain beers pair well with certain cheeses.

“We are now seeing that the fruitiness, yeasty flavors, hops and even sharp flavors of the Pilsners pair very well with the richness of our Camemberts and Brie cheeses,” he says.

“The main difference between beer and wine is the yeasty flavor and fruitiness that you taste with beer,” he says. “These flavor profiles complement soft-ripened cheeses very well. Wines can be extremely dry, oakey and have a strong tannic and herbaceous character. These characteristics do not pair well with Brie and Camembert.”

Sherman adds that beer typically comes packaged for the individual and is consumed in a short period of time, while once a bottle of wine is opened, if not finished, it can go bad in 2-3 days.

But even though certain benefits of pairing cheese and beer are being realized, that doesn’t mean beer is taking away from the popularity of wine with cheese, says Tom VanVoorhees, cheese shop manager at Rogue Creamery, Central Point, Ore.

“By no means is this trend leading to a beer vs. wine mentality among consumers,” he says.

VanVoorhees says something to note about pairing beer with cheese is the similarity in composition, the “earth” tones in each.

“Cows don’t eat grapes, they eat all the things that beer is made of,” he says.

VanVoorhees says in beer and cheese pairing classes he has led, he starts off the class by handing everyone a saltine cracker, a piece of sliced American cheese and an “everyday” domestic draft beer, like Budweiser.

“For a lot of people, that’s beer and cheese in America,” he says, adding that the real experimentation and flavor potential lies in pairing artisan cheeses with craft brews.

Rogue Creamery has teamed up with Rogue Ales, a brewery in Portland, Ore., on several beer and cheese pairings. The creamery even has a few cheeses with beer in them.

Rogue Creamery combines its Cheddar with Rogue Ale’s Chocolate Stout to create Chocolate Stout Cheddar.

“We pour the ale into a vat with the cheese curds, and it gets pressed and aged together,” VanVoorhees says. “It’s got a nice marble, brown coloring to it — it’s very popular.”

VanVoorhees says flavor composition is key in pairing the beers with the cheeses.

“I think the younger, soft cheeses, like fresh goat cheese, pair well with lighter, crispier beers, such as a Hefeweizen or a Pilsner,” he says. “Then as you get into aged cheeses, it’s very wide open. I’ve had good luck with a lot of Pale Ales and aged Cheddars, Goudas and goat cheeses.”

But, he adds, Rogue Creamery is best known for its Blue cheeses, which he says are very astringent and pair well with maltier beers, like Stouts and Porters.

VanVoorhees also points out a difference between beer and wine making is that wine can change from season to season, while beer, for the most part, retains a very similar flavor each time.

Still, he’s quick to add that there is plenty of room and demand for pairings with both beverages.

“There’s a lot of crossover between beer and wine drinkers,” he says. “Beer is just happening later.”

CMN

Editor’s note: As part of our “State of the Industry” series we take a look at the cheese and dairy industry across the United States. Each month we examine a different state or region, looking at key facts and evaluating areas of growth, challenges and recent innovations. This month we are pleased to introduce our latest states — Maine and New Hampshire.

By Rena Archwamety

MADISON, Wis. — For dairy farmers in Maine and New Hampshire, small can be big. According to the most recent statistics from USDA’s National Agricultural Statistics Service, Maine had 330 licensed dairy farms in 2008 and New Hampshire had only 130. Very few dairy farms in these states milk more than 1,000 cows, and the average size is closer to 100. Each state has a population of 1.3 million.

The small size of the states and their dairy industries, however, have helped foster a tight-knit community of support for dairy farmers and cheesemakers in Maine and New Hampshire.

“The biggest thing is the smallness of the state and cooperation of all the agencies in agriculture,” says John Porter, University of New Hampshire extension professor and dairy specialist, emeritus, and author of “The History and Economics of the New Hampshire Dairy Industry.”

Porter says he recently spoke with a couple who visited from New York and were amazed at the smallness of New Hampshire, and how easy it was to get right to the heads of organizations.

“A big advantage a lot of people mention, especially those from out-of-state, is that we have a close-knit state with lots of cooperation among agencies. It’s almost unique to the country,” Porter says. “Public health, the extension, USDA ... they’re all working together in a friendly way. Everyone is very supportive and likes to see the farmer succeed.”

Maine similarly boasts a supportive, close-knit dairy industry.

“Because it’s a fairly small industry in relation to other states, everyone knows each other well across the state. There is a good relationship between dairy farmers, policy makers and the infrastructure used to run dairy farms,” says Gary Anderson, cooperative extension specialist, University of Maine. “In general, we have a really great group of individual people who work together well on common issues. It’s a really good collaborative group of people.”

• Maine

Dairy farms in Maine are spread out across 15 of the state’s 16 counties, with concentrations near Waterville along the Kennebec river, and in Waldo, Kennebec and Sommerset counties. The largest dairy in Maine milks 1,600 cows.

Many of Maine’s dairy farms have expanded to accommodate additional family members and new generations. Seventy-six of Maine’s dairy farms are certified organic by the Maine Organic Farmers and Gardeners Association (MOFGA) and National Organic Program. According to NASS, Maine’s 33,000 dairy cows produced 603 million pounds of milk in 2008.

Major dairy processors in Maine include Oakhurst Dairy and HP Hood in Portland, Garelick Farms (owned by Dean Foods) in Bangor, Houlton Farms in Houlton and Smiling Hill Farm in Westbrook.

The Maine Milk Commission sets minimum wholesale milk prices for all fluid milk sold in the state. The price-setting mechanisms include setting over-order premiums and cost-of-production premiums. According to Tim Drake, executive director, Maine Milk Commission, about 53 percent of the milk produced in Maine is shipped outside the state. From the milk that stays in Maine, that percentage of premiums is paid to dairy farmers.

“Just this year alone, the premiums we set brought well over $8 million back into the producers’ pockets in Maine,” Drake says.

Starting in 2004, Maine’s dairy industry also has benefited from a dairy relief program that pays dairy farmers the difference they lose when milk prices fall below certain levels. This relief program is run by the state’s general fund.

“Since the inception of the dairy relief program, there’s been more than $40 million put into the dairy industry,” Drake says, adding that it has helped keep Maine’s dairy industry fairly stable through the recent low prices and economic downturn.

“It seems we have been able to hold onto most of our farms,” Drake says. “We have lost some, but we haven’t lost as many as some of our neighboring states.”

• New Hampshire

Dairy farms in New Hampshire are concentrated along the Connecticut River Valley on the western border of the state, and the Merrimack River Valley down the center and east. The average herd size is 115, and there is one 1,000-cow dairy in the state. After losing five or six dairies over the winter, there now are about 125 dairy farms in New Hampshire, Porter says.

“With this tough economic thing, we lost ground again,” Porter says. “We were optimistic — it had stabilized, and a few young folks were coming in. But with the tight economy, we lost farms and lost ground a little.”

The major milk bottler is an HP Hood plant in Concord, N.H. New Hampshire also is home to Stonyfield Farm, an organic yogurt company that markets its products across the United States as well as in Canada, France and Ireland.

Porter says lack of options where farmers can sell their milk and a shrinking infrastructure, as well as expensive land and high taxes, are some of the challenges New Hampshire’s dairy industry faces. However, dairy remains the No. 2 agricultural industry in the state, bringing $58.9 million of receipts into New Hampshire in 2008, according to USDA’s Economic Research Service.

• Value-added survival

Dairy farmers in both Maine and New Hampshire have turned toward value-added production and marketing, many with the help of state and industry organizations, as a way to grow business and preserve their farms in the face of low prices and tough economic times.

Today Maine’s Own Organic Milk Co. (MOOMilk) celebrates its official product launch at Smiling Hill Dairy. MOOMilk started with 10 organic dairy farms that were dropped by an out-of-state processor in 2009. With the help of MOFGA, the Maine Farm Bureau and the Maine Department of Agriculture, these farms formed a low-profit L3C corporation with a mission of helping Maine organic family dairy farms survive by earning a fair price for their milk.

Milk from MOOMilk farms is being picked up every other day by Schoppee Milk Transport of Holden and trucked to the Smiling Hill Dairy production facility for processing. Production started earlier this week, and product became available Tuesday in some Maine stores. Oakhurst Dairy and Crown of Maine Organic Co-op handle distribution to stores across Maine. The milk also will be sold in locations in New Hampshire and Massachusetts in the near future.

Ninety percent of the profits from the milk sales will go to the family farms producing the milk. According to MOOMilk, the start of its production marks a new step in the recovery of the Maine dairy industry.

Value-added products are becoming more popular on Maine dairy farms as well. Since milk prices started to drop and expanding in size was not an affordable option for many dairy farmers, some of them chose to grow through innovation and marketing.

“A lot of people are looking at making cheese or bottling their own milk,” Porter says. “This has been simultaneous with a real push in the state for local produce, tied in with the ‘buy local’ theme that has been promoted.”

Doug and Debby Erb, owners of Springvale Farms, a second-generation dairy farm in Landaff, N.H., decided to add farmstead cheesemaking to their business to raise the value of the milk from their 85 cows.

“The low prices of 2006 were a wake-up call for us, and that’s when we decided to do something nontraditional,” says Doug Erb.

Erb worked with a private consultant and took classes at the Vermont Institute for Artisan Cheese. He even visited Somerset, England, to learn about traditional Welsh farmstead cheesemaking. In January 2009, the Erbs made their first batch of Landaff Cheese, a mild, semi-firm cheese modeled after the Welsh Caerphilly. The Erbs’ cheese business, Landaff Creamery, sells the cheese “green” to Jasper Hill Farm in Greensboro, Vt., which ages and markets the cheese.

“We wanted a business model that would allow us to get big enough in a short amount of time so we could be effective in the sustainability of our farm,” Erb says.

Landaff Creamery is one of seven or eight active members of the New Hampshire Cheesemakers Guild, an organization that started a year ago with help from the New Hampshire Department of Agriculture and Granite State Dairy Promotion, a nonprofit funded by the state’s dairy farmers.

A meeting in February will determine some of the primary goals of the fledgeling guild, but this past year its goal was gaining visibility and promoting its new logo at events. The guild also is part of a New Hampshire wine and cheese trail publication, supported in part by the state’s departments of agriculture and tourism.

“I would say there is tremendous interest in local cheese on the part of consumers and restaurant owners,” says Gail McWilliam Jellie, director, New Hampshire Division of Agricultural Development. “Some chefs are putting cheese plates together featuring New Hampshire cheeses. There are a lot of winter farmers’ markets this year around the state. ... Local products of all kinds are hot right now.”

The Maine Cheese Guild, which includes around 80 members and 30 of the state’s cheesemakers, started in 2003 and meets about 10 times a year. Many meetings take place at different cheesemakers’ production facilities and involve workshops and learning about how members run their operations. An upcoming meeting in April will focus on how cheesemakers can make their own rennet.

“The guild is a great group of people,” says Eric Rector, president of Maine Cheese Guild and owner/cheesemaker at Monroe Cheese Studio, Monroe, Maine. “I’ve heard from other states that cheesemakers are not always so open, willing to share tips, tricks and experiences as they are in this guild. It’s a great atmosphere to be able to come and be a cheesemaker, with the willingness of other cheesemakers to be so open and sharing.”

Rector says the cheesemakers in the state have grown from about 15-17 when he first entered the business five years ago to now more than 35. And with increased demand for local foods, he sees the opportunity for even more growth and partnerships with dairy farms.

“The audience here in Maine is very receptive to local dairy products,” Rector says. “The market at this point seems endless for the types of cheese we’re making. It’s a real bright spot in the agricultural scene.”

CMN

WASHINGTON — The U.S. Department of Justice (DOJ) last week filed a civil antitrust lawsuit against Dean Foods Co., Dallas, challenging its April 2009 acquisition of Foremost Farms USA’s consumer products division.

DOJ’s antitrust division — along with state attorneys general from Illinois, Michigan and Wisconsin — filed the lawsuit in U.S. District Court in Milwaukee, seeking to require Dean Foods to sell the dairy processing plants it acquired from Foremost Farms.

According to DOJ, the merger eliminates substantial competition in the sale of milk to schools, grocery stores, convenience stores and other retailers in Illinois, Michigan and Wisconsin.

“The purpose of the department’s lawsuit is to restore competition so that schools, grocery stores and other retailers in Illinois, Michigan and Wisconsin will pay lower prices for their milk,” says Christine Varney, assistant attorney general in charge of DOJ’s antitrust division. “Dean Foods’ acquisition of Foremost Farms’ two dairy processing plants in De Pere and Waukesha, Wis., eliminated an aggressive competitor against Dean Foods.”

According to DOJ, Dean Foods and Foremost Farms were the first and fourth largest milk processors, respectively, in northeastern Illinois, the Upper Peninsula of Michigan and Wisconsin. Dean Foods now has approximately 57 percent of the market for processed milk in those regions.

The department alleges that the acquisition reduced competition substantially in the sale of milk to supermarkets, grocery stores and other commercial customers throughout those regions, and deprived retailers of the benefits of substantial head-to-head competition between Dean Foods and Foremost Farms.

Further, with Foremost Farms eliminated as a competitor, it would be easier for Dean Foods to coordinate with the remaining milk processors, whose competitive decision-making Dean Foods has described as “more predictable” and “rational,” DOJ says.

DOJ’s lawsuit seeks to undo the 2009 deal between Dean Foods and Foremost Farms, as well as require Dean Foods to notify the department at least 30 days prior to any future acquisition involving a milk processing operation.

Dean Foods says it is contesting the complaint. The company says that its acquisition of the De Pere and Waukesha plants is fully compliant with antitrust laws and that it plans to defend itself “vigorously” against the complaint.

According to Dean, from the time of the acquisition, the transaction has benefitted Wisconsin dairy farmers by providing a stable and growing outlet for their milk.

Further, the transaction already has produced important cost savings that will benefit customers and spur competition in and around Wisconsin, Dean says.

Dean says that “an objective judicial review of the facts will reveal that competition is alive and flourishing in Wisconsin.”

Late last week, Sen. Russ Feingold, D-Wis., praised DOJ for the department’s move to block the merger.

During Varney’s confirmation hearings in March 2009, Feingold focused his questioning almost exclusively on competition in the dairy industry. In May, Feingold specifically requested that the DOJ antitrust division take a closer look at Dean’s acquisition of the Foremost Farms bottling plants in DePere and Waukesha.

“The Justice Department’s actions confirm what I have been hearing from dairy farmers at my listening sessions and elsewhere around Wisconsin for some time,” Feingold says. “This consolidation would be terrible for Wisconsin consumers and school districts, as well as Wisconsin farmers. After years of inaction by the DOJ antitrust division despite growing concern about unfair competition in many agricultural markets, this is a welcome change.”

CMN

WASHINGTON — Total cheese in cold storage as of Dec. 31, 2009, reached 966.9 million pounds, a 13 percent increase from December 2008’s 852.0 million pounds and 1 percent higher than November 2009’s 961.7 million pounds, according to recent data from USDA’s National Agricultural Statistics Service (NASS).

Total American cheese in cold storage as of Dec. 31, 2009, was 586.8 million pounds, up 9 percent from December 2008’s 538.1 million pounds and up 1 percent from November 2009’s 583.1 million pounds, NASS says.

Swiss cheese in cold storage totaled 24.5 million pounds at the end of December, NASS reports. This was up 9 percent from December 2008’s 22.6 million pounds and up 1 percent from November 2009’s 24.3 million pounds.

Other natural cheese in cold storage totaled 355.6 million pounds at the end of December 2009, up 22 percent from December 2008’s 291.3 million pounds but up less than 1 percent from November 2009’s 354.4 million pounds, according to NASS.

NASS further reports that total butter in cold storage as of Dec. 31, 2009, was 133.7 million pounds. This was a 12 percent increase vs. December 2008’s 119.0 million pounds but a 6 percent decline compared to the 142.7 million pounds in cold storage at the end of November 2009.

CMN

MADISON, Wis. — The supply/demand imbalance that brought dairy product prices to severely low levels in 2009 has begun to turn around, and the industry should expect to see stable prices throughout much of 2010 as the milk supply tightens, economists say.

“All signs point to higher milk prices as we progress through the year,” says Bob Cropp, professor emeritus at the University of Wisconsin-Madison Cooperative Extension, in his latest Dairy Situation and Outlook report released this week.

According to Cropp, there are signs that domestic milk and dairy product sales are improving and may be up more than 1 percent for the year. Fluid milk sales have been running about 1 percent higher than a year ago.

In addition, sales to restaurants have improved. Mozzarella cheese sales from last November were up 7.5 percent from a year ago to meet higher demands from pizza makers, Cropp says.

Prices at the Chicago Mercantile Exchange (CME) have fluctuated some in the past week. While cheese prices have remained relatively steady — barrels were at $1.4900 and blocks at $1.4650 as of Thursday — Extra Grade and Grade A nonfat dry milk (NDM) prices took a dive last week. Last Thursday, Extra Grade NDM dropped 8.5 cents to settle at $1.3000, and Grade A NDM dropped 7 cents to $1.3000. Both have remained at those levels through Thursday.

The butter price steadily increased last week before jumping 10.5 cents last Friday to settle at $1.5250. This week, however, butter has been slowly dropping, with the price at $1.4800 as of Thursday. (For today’s prices, visit www.cheesemarketnews.com.)

According to Bill Brooks, a dairy economist with Downes-O’Neill, the higher butter prices likely are not sustainable.

“This is occurring at a time when we are seeing growing butter inventories, but butter is a storable commodity that somebody might need, and the folks who have it aren’t willing to let go of it unless they achieve a certain price,” Brooks says.

Still, even if prices are not sustainable at those levels, prices for butter, cheese and NDM should remain relatively stable throughout much of 2010 as the milk supply tightens a bit, Brooks says.

“I don’t see prices dropping drastically or anything too dramatic occurring right now,” he says. “Even though the market is tight we seem to have enough supply, and this time of year we typically see prices moderate a bit.”

Strength in the cash butter price is not surprising to most butter producers and handlers. Many anticipated that the cash price would strengthen early in the new year. Churning activity has eased across the country as cream supplies tighten and pricing multiples firm, according to USDA’s Dairy Market News.

Dairy Market News says current butter production is clearing through good butter sales, and surplus is entering inventory programs. Good butter sales are being spurred by buyers hedging against higher prices in the future and possible shortages later in the year. Butter producers state that both 80 percent and 82 percent butter is being generated for domestic and international buyer interest.

Robin Schmahl, a commodity broker and owner of AgDairy LLC, says the end of 2009 renewed a bearish attitude in the market but has since given way to a more positive outlook.

The high butter prices could be foreshadowing where cheese prices are going, as many times butter is the indicator of the price direction and strength of cheese, Schmahl says. However, cheese inventory is large and has reached the time of year during which there is a seasonal increase of stocks.

“Unless demand picks up dramatically or production falls significantly, these high supplies will have an impact on price strength,” Schmahl says. “We’re probably close to the upper price threshold for cheese now.”

Cheese prices are expected to strengthen throughout 2010 as economic recovery proceeds and milk supplies tighten, according to the latest “Livestock, Dairy and Poultry Outlook” released this week by USDA’s Economic Research Service (ERS).

Cheese prices are expected to average $1.570-$1.650 per pound in 2010, an increase from the $1.2966-per-pound average posted for 2009.

Butter prices, like cheese prices, are expected to rise through 2010 and are forecast to average $1.390-$1.500 per pound, well above the $1.2096 average price for 2009, ERS says. Lower expected milk production in 2010 should reduce both cheese and butter production this year compared with last year, helping to support prices and draw down stocks.

According to ERS, the moderation in forecast feed prices compared with the last two years helps boost the milk/feed price ratio and the profit outlook for U.S. dairy producers in the near future.

The U.S. dairy herd continues moderate contraction that is likely to continue throughout 2010. Herd size is forecast to average just below 9 million head this year, down from 9.2 million head in 2009.

“While the worst of the economic contraction is over, many producers are not in a financial position to consider herd expansion at this time,” ERS says.

In addition, lower expected feed prices should help boost production per cow that is expected to increase by a relatively “robust” 1.9 percent this year, ERS says. USDA projects 2010 milk production at 188.4 billion pounds, which would represent a further decline from 2009’s lower production.

Continued improvement in exports will be a significant factor in the price outlook, especially for skim milk powders, ERS says.

While the decline in dairy exports in 2009 was a major factor in bringing milk prices down, an increase in exports may be the key to higher prices in 2010, Cropp says. November exports of NDM, cheese, butter, whey proteins and lactose all posted strong increases over the same period a year prior.

According to Schmahl, exports picking up will be important in 2010 as the United States was not seeing good export numbers in 2009.

Schmahl says there has been a “change in attitude” regarding dairy exports in the United States, and more people are looking to the export market as a means to lessen inventory build-up.

“November cheese exports increased 13 percent with whey protein exports up 47 percent, indicating improving demand,” he says.

CMN

MADISON, Wis. — Since a deadly 7.0 earthquake hit Haiti near its capital Port-au-Prince Jan. 12, people all over the world have taken notice of the devastation, and donations have been flowing in from individuals, companies and relief groups.

Dairy companies and organizations are among those trying to help, some sending food and others donating money directly to aid organizations such as the American Red Cross.

“This is a time for the U.S. dairy producer community to step up to the plate and help, in a coordinated way, to address an enormous humanitarian crisis close to home,” says Jerry Kozak, president and CEO, National Milk Producers Federation (NMPF).

Cooperatives Working Together (CWT), in conjunction with NMPF, this week announced it is donating $100,000 to the American Red Cross to assist in the aid and recovery effort in Haiti. The monetary contribution will be used to provide dairy products and other foods, along with water, fuel, medicine, shelter or whatever services are most needed.

“Dairy producers have given generously in the past to help with other international and domestic relief efforts,” Kozak says. “In this tragic situation, a cash donation to the Red Cross is the most effective and expeditious method to help people in Haiti.”

The National Farmers Union (NFU) this week encouraged its members and the general public to contribute to and work with the CARE Foundation, a private international humanitarian organization, to help those affected by the earthquake. NFU is a charter member of the CARE Foundation.

“NFU hopes that we will be able to come together during this tragedy and assist those in Port-au-Prince as they begin the road to reconstruction,” says Roger Johnson, president, NFU. “Every donation large or small can help make a difference.”

Dairy processors and retailers also have made donations to relief efforts. DCI Cheese Co., Richfield, Wis., this week announced a donation of $45,000 to the American Red Cross in response to the earthquake. The donation represents a $100 contribution made on behalf of each of the company’s 450 associates.

“We feel extremely fortunate to have such a terrific set of customers, suppliers and employees,” says Michael Mulhern, CEO, DCI. “We would like to take this opportunity to share our good fortune with those in need. We encourage other companies to participate in the relief effort as well.”

The Kraft Foods Foundation recently increased its donation to support Haiti relief efforts to $200,000 and will match employees’ donations on a 2:1 basis up to $100,000, bringing the total matching component to $300,000. The total donation will go to the American Red Cross, Save the Children, CARE and the United Nations World Food Programme. The Walmart Foundation has announced a $500,000 monetary donation to the Red Cross, and the retailer also is sending pre-packaged food kits valued at $100,000 to Haiti.

Some companies are offering to match donations. Land O’Lakes is contributing $20,000 directly to the American Red Cross as well as matching employee and member co-op donations to either the Red Cross or Salvation Army and providing Land O’Lakes product donations.

CME Group this week sponsored fund-raising drives for Haiti relief at locations in Chicago and New York and will match up to $50,000 of the donations received from members of its exchange community.

The company is close to reaching its goal of $50,000, and it will continue to collect donations through Jan. 27, says CME Group spokesperson Mary Hassenberg. The donations will be divided between the American Red Cross and AmeriCares to provide immediate aid, shelter and relief in the hardest hit areas.

Cheese Market News also is making a monetary donation to the Red Cross.

“As tens of thousands of sick and injured in Haiti await for relief efforts to come, all of us need to do our part,” says Susan Quarne, publisher, Cheese Market News. “Cheese Market News feels it is important to donate, and we are choosing to donate through the American Red Cross, which is a lifeline for many during emergencies. We feel confident that our donation goes right where it is needed for meeting the humanitarian needs of all the people of Haiti.”

Some companies are donating proceeds from food sales to the relief effort.

Golden Age Cheese, Woodhull, N.Y., is donating to the American Red Cross Haiti relief efforts through eBay sales of some of its more popular items.

The company is listing combination packages of 2-pound Golden Age Super Sharp Cheddar Cheese and five Old Fashioned Beef Snack Sticks on eBay for $23.69 per package, plus shipping and handling. Golden Age Cheese then is donating 50 percent of these sales to the Red Cross through a special arrangement eBay offers to its sellers.

“They’re some of our best sellers, so we figured we’d try to get as many people to see the auction as possible. We’re telling returning customers about it,” says Marco Hickey, online sales manager, Golden Age Cheese, adding that the company is not making a profit on these eBay items. “We’re not trying to make any money, but it’s a good way to shed light on donating.”

Hickey says the company has done one other eBay charity sale event with good customer response.

“You definitely know it’s going to be donated because eBay’s in control and tracks everything,” Hickey says. “Someone can say they’re going to donate 50 percent, but there’s no way of knowing. On eBay, when somebody purchases something, they make sure it gets to the charity. It’s a very good way for companies to do this.”

Dairy Farmers of America (DFA), through its DFA Cares Foundation, has donated more than 4,500 cases of its shelf-stable, dairy-based sports drink Sport Shake to Haiti. The DFA Cares Foundation, initially formed to provide relief to DFA members affected by Hurricane Katrina, now encompasses a broader range of charitable efforts. DFA Cares also is collecting monetary donations from members and others wishing to contribute to relief and recovery efforts in Haiti.

“We’ve all seen the tremendous horror and the devastation that has occurred in Haiti, and on behalf of our members, we made this donation,” says John Stephens, chief operating officer for consumer brands, DFA. “It’s a small part ... something we could do to provide immediate relief. We wish we could do more, and we will do more as the situation unfolds.”

Sport Shake, which has been sold in Haitian markets for more than 10 years, will reach people in Haiti through Convoy of Hope, a charitable organization that distributes food to areas of need.

Stephens says DFA chose to distribute Sport Shake through the Springfield, Mo.-based Convoy of Hope because that organization already has food distribution locations set up in Haiti. The shipment is scheduled to arrive Jan. 28.

“We’ve enjoyed a nice business relationship with the Haitian population for a number of years,” Stephens says of the reasons DFA decided to donate in this way. “In light of this being a shelf-stable, dairy-based sports drink, and people needing to have access to food and other nourishment, we thought this would be a tremendous way of lending hope and aid to Haitians.”

CMN

WASHINGTON — U.S. milk production in the 23 major milk-producing states during December totaled 14.61 billion pounds, down 0.8 percent from production a year earlier, according to preliminary production data recently released by USDA’s National Agricultural Statistics Service (NASS).

November revised production in the 23 major states, at 13.98 billion pounds, was down 0.8 percent from November 2008. The November revision represents an increase of 24 million pounds or 0.2 percent from last month’s preliminary production estimate.

NASS estimates December production for the entire United States at 15.76 billion pounds, down 0.9 percent from production a year earlier. This brings the preliminary 2009 production total for the United States to 189.3 billion pounds, a 0.4 percent decline from 2008. It should be noted that 2008 also was a leap year, and, when adjusted for the extra day, production in 2009 was down 0.1 percent on an average daily basis.

Cow numbers declined significantly in 2009. For the entire United States, NASS estimates there were 9.08 million cows on farms in December. This is down 3,000 head from November and down 252,000 head from December 2008. NASS says 2009 averaged 9.20 million cows on U.S. farms vs. 9.32 million cows on farms in 2008. In the 23 major states, there were 8.31 million cows on farms in December, unchanged from a month earlier but down 206,000 head from December 2008. In 2009, there were an average of 8.41 million cows on farms in the 23 major states vs. 8.50 million cows on farms in the major states in 2008.

In December, production per U.S. cow averaged 1,735 pounds, up 32 pounds from December 2008. For the year, production per U.S. cow averaged 20,572 pounds, up 176 pounds from 2008, not adjusting for leap year.

In the 23 major states, December production per cow averaged 1,758, up 29 pounds from a year earlier. For the year, production per cow in the 23 states averaged 20,845 pounds, up 141 pounds from 2008.

CMN

PHOENIX — In her keynote speech at the 2010 U.S. Dairy Forum this week in Phoenix, Connie Tipton, president and CEO of the International Dairy Foods Association (IDFA), called for industry involvement, innovation and unity as the best ways to combat a sluggish economy and unleash the industry’s potential for growth and success.

Tipton addressed a record crowd of dairy producers, processors, suppliers and other industry participants gathered at the 25th annual forum.

Tipton in her speech first touched on the changes emerging from the Obama administration and Congress, warning that a flood of new regulations, taxes and mandates soon may become “laws of the land.”

“From health care to food safety, nutrition to cap-and-trade, the industry needs to oppose unnecessary regulations or unjustified fees that will add costs to production without providing benefits to dairy consumers,” Tipton says.

“There are businesses and industries that simply cannot weather additional costs in an increasingly competitive and regulated marketplace,” Tipton adds. “Our industry is not immune to these risks. So we have a real stake in what comes out of this very political process in Washington.”

Tipton says that the past year of “devastating milk prices,” dropping export levels and consumer belt tightening clearly shows that the “so-called safety net programs for our dairymen” don’t work in today’s market economy.

She discussed highlights from a comprehensive plan for reformatting dairy policies and programs put forth by Jerry Kozak, president and CEO, National Milk Producers Federation (NMPF), acknowledging that the plan would affect different businesses in different ways and encouraging industry leaders to abandon the status quo and give the plan serious consideration.

Tipton says by doing so, “the U.S. dairy industry has a chance in 2010 to re-chart its future, to build a better, stronger, more cohesive community, energized at last by genuine teamwork and breakthrough thinking.”

She says another industry lesson learned in 2009 is that the dairy industry must listen closely to consumers and provide innovative ideas, products, ingredients and packaging to meet their needs.

“Fundamental to our success will be how well we compete for the consumers’ palate — at home and around the globe,” Tipton says. “We need more people eating dairy and choosing dairy ingredients — and that means we’d better know what consumers are thinking and what’s tickling their taste buds.”

Tipton concluded with a call for industry leaders to confront the current policy climate and all industry challenges with resolve and teamwork.

“It’s the only way we can progress, the only way we can win, the only way we can realize the kind of success we all know is possible — the success that is within our grasp,” she says.

CMN