By Rena Archwamety

MADISON, Wis. — An FDA review about 10 years ago of the mandatory 60-day aging rule for raw milk cheeses spurred a debate in the cheese industry over the safety of raw milk cheeses and the right of cheesemakers to produce and sell such products (see “Cheesemakers fight to retain right to market raw milk cheese,” Nov. 10, 2000, in the archives at www.cheesemarketnews.com).

Today the 60-day rule remains in place, and raw milk cheeses are more abundant in the specialty marketplace than they were 10 years ago. However, regulators, researchers and cheesemakers continue to examine how to maximize both safety and flavor in raw milk cheeses.

The Raw Milk Cheesemakers’ Association, formed about three years ago to help promote traditionally-produced raw milk cheeses, aims to educate both consumers and cheesemakers about safely-produced raw milk cheese.

“We are just trying to make people more aware that raw milk cheese is a totally safe, legal option,” says Alyce Birchenough, president of the Raw Milk Cheesemakers’ Association and owner of Sweet Home Farm, Elberta, Ala., which has made raw milk farmstead cheese for more than 30 years.

Slow Food USA helped with the startup of the Raw Milk Cheesemakers’ Association and worked with the group to create a “Raw Milk Cheese Presidium” which established a protocol to encourage raw milk cheese producers to make humane, socially and environmentally-responsible, high-quality raw milk cheese.

The Raw Milk Cheesemakers’ Association, which currently has about 60 members, has participated in international events, offered sanitation classes for cheesemakers to improve quality and provided technical resources to its members. Birchenough will moderate a discussion on raw milk cheese Thursday during the American Cheese Society conference in Seattle.

“Unfortunately, raw milk cheese gets categorized with fluid raw milk,” Birchenough says. “Fluid raw milk is a much more challenging product to present to consumers with the safety issue involved.”

• A broader look at safety

Catherine Donnelly, co-director of the Vermont Institute for Artisan Cheese and professor in the Department of Nutrition and Food Science, University of Vermont, also will be a panelist at Thursday’s raw milk discussion at the ACS conference.

“It’s a complicated issue, and it’s great that ACS is devoting time to this at the convention,” Donnelly says.

She notes that as a food product group, cheeses are relatively safe in terms of recall notices compared to ground beef, poultry, salad greens and other foods.

Donnelly says to answer the question of whether raw milk cheese is safe, one has to consider the many varieties and intrinsic characteristics and risks of each one. For example, to expel moisture, hard cheeses made with raw milk must go through a curd-cooking step that exceeds pasteurization requirements.

“It starts with the use of raw milk, but there’s nothing raw about cooked curd cheeses,” Donnelly says.

Furthermore, it is not just the heat step that makes cheese safe, but the whole system of production, Donnelly says.

“Making microbially-safe cheese involves using milk of the highest quality, controlling contamination in the environment and meeting all targets that reduce pathogens to where risk is negligible,” Donnelly says.

David Gremmels, co-owner of Rogue Creamery, Central Point, Ore., and president of ACS, says pasteurizing the milk would considerably change the flavor profile that represents the place Rogue’s Blue cheeses are made and where the cows graze.

To ensure high quality in both safety and flavor, Gremmels says Rogue conducts regular tests.

“We test our milk, and like all cheeses, from both pasteurized and raw milk, it’s important to understand the cheese,” Gremmels says. “Testing it regularly to get an understanding in total is very important. Testing includes full organoleptic tasting prior to it being released, and full microbial testing.”

Gremmels says producing safe raw milk cheese starts with having a quality assurance and HAACP (hazard analysis and critical control points) plan in place.

“From start to finish, we have a very proactive plan for team members to follow and have training and testing in place,” he says. “We reinforce that in the make room, in aging, in finishing the cheese, understanding the cheese in its life cycle. It’s the same with pasteurized or non-pasteurized, having that quality assurance.”

• Risk-based regulations

In recent years, regulations have shifted to focus more on the entire food safety process, educating cheesemakers and honing in on areas that pose the most risk.

Donnelly says the 2002 Farm Bill redefined pasteurization as “any process, treatment or combination thereof that is applied to food to reduce the most resistant microorganism(s) of public health significance to a level that is not likely to present a public health risk under normal conditions of distribution and storage.”

Using pasteurized milk in cheese does not guarantee its safety, and Donnelly points out most outbreaks have been a result of contamination from the environment after the cheese was made.

“Listeria is almost always linked to ... the environment after aging or manufacture. Whether you use raw or pasteurized milk becomes irrelevant,” Donnelly says.

The 60-day aging rule isn’t a guarantee of safety either, particularly in soft ripened cheeses, where aging can increase the risk, as opposed to hard cheeses where aging reduces the growth of pathogens. When the 60-day aging rule was introduced in the 1940s, the United States was predominantly manufacturing Cheddar. Donnelly says FDA’s 60-day aging rule applies equally to soft cheeses, but it shouldn’t.

“Now that we’re becoming this really great cheese nation, maybe we need to re-look at the regulations,” Donnelly says. “If you take a Camembert-style cheese that is contaminated with Listeria, at 60 days it is at the peak of risk. In Europe, they don’t permit (soft raw milk cheeses) to be sold after 59 days.”

Rather than regulators instating broad bans and penalties, Donnelly points to a USDA grant program in Vermont that worked with small-scale cheesemakers in a risk-reduction program. Teams that included microbiologists would observe a cheesemaking facility, do microbial sampling of the milk, cheese and environment, compile the data and work with the cheesemakers on identifying areas of risk and risk reduction.

“It really made a difference for the cheesemakers,” Donnelly says. “We heard from the cheesemakers that recently were inspected that the program was great, and FDA inspectors were also impressed. Education can go a long way in improving the microbial safety of cheeses.”

Regulators also are targeting cheeses that pose the most risk, Donnelly says. For example, FDA teamed up with Health Canada to assess the impact of Listeria monocytogenes in soft ripened cheeses as part of a 2007 joint public health risk assessment. The program looked at contamination, individual manufacturers, processing steps and the effectiveness of intervention strategies.

“This is an example of a risk-based approach to cheese safety as opposed to impugning all cheeses made from raw milk,” Donnelly says. “With factors such as the redefinition of pasteurization as well as looking at global trade and EU regulations, I think we might be moving in this country to more of a risk-based regulation than to ‘Let’s ban all raw milk cheesemaking.’ There’s no risk base in that.”

• Exporting raw milk cheeses

While imported raw milk cheeses such as Parmigiano and Roquefort have long been favorites in the United States, U.S. raw milk cheeses only recently have been introduced to the rest of the world. In 2007, Rogue Creamery became the first U.S. exporter of raw milk cheese to the European Union.

One challenge in making raw milk cheeses for export is meeting not only U.S. standards but also European regulations. Gremmels says since Rogue Creamery used EU standards as a benchmark and went beyond that in creating its food safety and HAACP plan, it was not a stretch to meet EU approval, though the record keeping was more work.

“We must keep track of everything, document everything, register everything,” Gremmels says. “There are added steps, but the value is certainly there, and it’s worth the effort.”

Gremmels adds that EU requirements for raw milk cheeses are very much in line with trends he sees overall in the U.S. cheese industry for milk standards, records and safety plans.

Since Rogue Creamery broke into Europe’s raw milk cheese market, Uplands Cheese, Dodgeville, Wis., last year became another U.S. exporter of raw milk specialty cheese with its Pleasant Ridge Reserve. Other pasteurized-milk artisan cheeses from the United States have entered the European market as well. Gremmels estimates at least 12 U.S. farmstead and artisan cheeses, from both raw and pasteurized milk, now are available in Europe, and he adds that the U.S. cheeses have been well-received.

All these cheeses, Gremmels says, provide a unique experience that represents the regional flavors of America.

“Raw milk cheeses are vital for the total of American cheese,” Gremmels says. “It’s an important style of cheesemaking that represents the small farmstead and artisan producer. It’s vital to the family farm and for the artisan cheese movement.”

CMN

MADISON, Wis. — Sartori Foods, Plymouth, Wis., has been named Cheese and Butter Grand Champion for its SarVecchio Parmesan wheel, and Gifford’s Dairy, Skowhegan, Maine, has been named Grade A & Ice Cream Grand Champion for its chocolate ice cream in the 2010 World Dairy Expo (WDE) Championship Dairy Product Contest.

This year’s contest, sponsored by the Wisconsin Dairy Products Association (WDPA), received a record 655 entries from throughout the United States for cheese, ice cream, fluid milk and other dairy products.

“It is extremely gratifying to see how dairy manufacturers have embraced this contest,” says Brad Legreid, executive director, WDPA. “Due to the tremendous support from dairy companies throughout North America, the World Dairy Expo Championship Dairy Product Contest has averaged an amazing 30 percent annual rate of growth over its first eight years. This is a phenomenal level of growth for a relatively new contest.”

Judging was held Aug. 17 at the University of Wisconsin-Madison’s Babcock Hall, and Aug. 18-19 at the Madison Area Technical College Culinary School. The first-place winners in each category will be auctioned off Sept. 28 at WDE in Madison. A portion of the proceeds from the auction will be used to fund the Dr. Robert L. Bradley Scholarship, which is awarded annually to an outstanding student pursuing a career in the dairy industry. For more information about the contest and auction, call 608-836-3336.

The winning products in each contest category are:

• Cheddar
First: Land O’Lakes, Kiel, Wis., 99.4.
Second: Land O’Lakes, Kiel, Wis., 99.35.
Third: Associated Milk Producers Inc., Rochester, Minn., 99.25. •Sharp Cheddar
First: Dairy Farmers of America, Zumbrota, Minn., 99.15.
Second: Jerome Cheese Co., Jerome, Idaho, 98.
Third: Foremost Farms USA, Marshfield, Wis., 97.

• Aged Cheddar
First: Land O’Lakes, Kiel, Wis., 98.55.
Second: Land O’Lakes, Kiel, Wis., 98.05.
Third: Foremost Farms USA, Marshfield, Wis., 97.9.

• Colby, Monterey Jack
First:Guggisberg-Deutsch Kase Haus, Middlebury, Ind., 99, Colby Longhorn.
Second: Foremost Farms USA, Marshfield, Wis., 98.6, Monterey Jack.
Third: Darigold Inc., Sunnyside, Wash., 98.45, Monterey Jack.

• Swiss Styles
First: Chalet Cheese/Deppeler Factory, Monroe, Wis., 99.25, Baby Swiss Wheel.
Second: Guggisberg Cheese, Millersburg, Ohio, 99.05, Swiss Cheese Block.
Third: Swiss Valley Farms, Monona, Iowa, 98.3, Swiss.

• Brick, Muenster
First: Mill Creek Cheese, Arena, Wis., 99.5, Muenster.
Second: Babcock Hall Dairy Plant, Madison , Wis., 99.05, Brick.
Third: Fair Oaks Farms, Fair Oaks, Ind., 98.6, Muenster.

• Mozzarella
First: Dairy Farmers of America, Turlock, Calif., 99.15, Mozzarella.
Second: Dairy Farmers of America, Turlock, Calif., 98.8, Mozzarella.
Third: Sorrento Lactalis, Nampa, Idaho, 98.45, 16-ounce retail LMPS.

• Fresh Mozzarella
First: Sorrento Lactalis, Nampa, Idaho, 99.5, 8-ounce vacuum-packed Fresh Mozzarella.
Second: Sorrento Lactalis, Nampa, Idaho, 98.75, .3-8-ounce retail cup Fresh Mozzarella
Third: Maplebrook Farm, Bennington, Vt., 98, Handmade Fresh Mozzarella.

• String Cheese
First: Burnett Dairy Cooperative, Grantsburg, Wis., 98.9.
Second: Cesar’s Cheese, Random Lake, Wis., 98.5.
Third: Burnett Dairy Cooperative, Grantsburg, Wis., 97.55.

• Provolone
First: Sorrento Lactalis, Nampa, Idaho, 98.55.
Second: Foremost Farms USA, Clayton, Wis., 98.5.
Third: Dairy Farmers of America, Turlock Calif., 98.35

• Blue Veined Cheese
First: Swiss Valley Farms, Mindoro Wis., 99.5, Blue Cheese-Mindoro.
Second: Swiss Valley Farms, Mindoro, Wis., 98.55, Gorgonzola- Mindoro.
Third: Sartori Foods, Plymouth, Wis., 98.5, Dolcina Gorgonzola Wheel.

• Flavored Natural Cheese
First: Burnett Dairy Cooperative, Grantsburg, Wis., 99.6, Pepper Flavored String Cheese, Habanero.
Second: Burnett Dairy Cooperative, Grantsburg, Wis., 99.55, Pepper Flavored String Cheese.
Third: Mill Creek Cheese, Arena, Wis., 99.4, Smoked Muenster.

• Cold Pack Cheese, Cheese Foods
First: Pine River Pre Pack, Newton Wis., 98.05, Horseradish Cold Pack Cheese Food.
Second: Pine River Pre Pack, Newton, Wis., 97.05, Swiss & Almond Cold Pack Cheese Food.
Third: Pine River Pre Pack, Newton, Wis., 96.55, Garlic & Herb Cold Pack Cheese Food.

• Pasteurized Processed Cheese (unflavored)
First: Dairy Farmers of America, Plymouth, Wis., 98.95, Borden Deluxe American.
Second: Land O’Lakes, Spencer, Wis., 97.1, Slice on Slice Yellow American.
Third: Land O’Lakes, Spencer, Wis., 96.9, Slice on Slice Yellow Sharp American.

• Reduced Fat Cheese
First: Swiss Valley Farms, Monona, Iowa, 99.4, Neufchatel.
Second: Sorrento Lactalis, Nampa, Idaho, 99.25, 16-ounce Reduced Fat Mozzarella.
Third: Land O’Lakes, Spencer, Wis., 99.1, Slice on Slice White Reduced Fat.

• Open Class Soft Cheese
First: Sorrento Lactalis, Nampa, Idaho, 99.6, 5-pound Mascrapone.
Second: Sorrento Lactalis, Nampa, Idaho, 99.15, 16-ounce Mascarpone.
Third: Arthur Schuman Inc., Fairfield, N.J., 98.5, Cello Thick & Smooth Mascarpone.

• Open Class Semi-Soft Cheese
First: Babcock Hall Dairy Plant, Madison , Wis., 99.45, Gouda.
Second: Holland’s Family Cheese, Thorp, Wis., 99.4, Marieke Gouda Aged.
Third: Holland’s Family Cheese, Thorp, Wis., 99.15, Marieke Gouda Burningmelange.

• Open Class Hard Cheese
First: Sartori Foods, Plymouth, Wis., 99.2, SarVecchio Parmesan Wheel.
Second: Sartori Foods, Plymouth, Wis., 99.05, Rosemary & Olive Oil Rubbed Asiago Wheel.
Third: Arthur Schuman Inc., Fairfield, N.J., 99.025, LCD Asiago Wheel.

• Open Class Flavored Process Cheese
First: Land O’Lakes, Spencer, Wis., 98.05, American Cheese w/ Jalapeno Peppers.
Second: Thiel Cheese & Ingredients LLC, Hilbert, Wis., 97.9, Colored American w/ Green Onion.
Third: Associated Milk Producers Inc., Portage, Wis., 97.65, Hot Pepper Cheese Loaf.

• Latin American Cheese
First: Marquez Brothers International, Hanford, Calif., 98.4, Queso Fresco Cremoso.
Second: Marquez Brothers International, Hanford, Calif., 97.75, Panela Soft Cheese.
Third: Marquez Brothers International, Hanford, Calif., 97.15, Cotija Hard Cheese.

• Mixed Milk Cheese
First: Nordic Creamery, Westby, Wis., 97.2, Capriko-Blend of Cow/Goat Milk.
Second: Nordic Creamery, Westby, Wis., 95.55, Feddost Cow/Goat Blend w/Cumin and Clove.
Third: Gingerbread Jersey Cheese, Augusta, Wis., 94.3, Bears Grass Cold Cheese.

• Goat Milk Cheese
First: Finica Food Specialties LTD, Mississauga, Ontario, 99, Celebrity International Cranberry w/Cinnamon Goat Cheese.
Second: Old Europe Cheese Inc., Benton Harbor, Mich., 98.95, Goat Gouda.
Third: Finica Food Specialties LTD, Mississauga, Ontario, 98.45, Celebrity International Mediterranean Goat Cheese.

• Open Class Cheese
First: Old Europe Cheese Inc., Benton Harbor, Mich., 99, Triple Cream Brie.
Second: Old Europe Cheese Inc., Benton Harbor, Mich., 98.85, Camembert Fermier.
Third: Gingerbread Jersey Cheese, Augusta Wis., 97.9, Dill and Garlic Cheese Curds.

• Salted Butter
First: O-AT-KA Milk Products, Batavia, N.Y., 99.75.
Second: Michigan Milk Producers Association, Constantine, Mich., 99.
Third: Kate’s Homeade Butter, Old Orchard Beach, Maine, 98.95.

• Unsalted Butter
First: O-AT-KA Milk Products, Batavia, N.Y., 99.3.
Second: Michigan Milk Producers Association, Constantine, Mich., 99.2.
Third: Kate’s Homeade Butter, Old Orchard Beach, Maine, 99.15.

• Open Butter Class
First: Keller’s Creamery, Winnsboro, Texas, 98, Open Butter Class.
Second: Land O’Lakes, Kent, Ohio, 95.8, Spreadable Butter w/ Canola Oil.
Third: Land O’Lakes, Kent, Ohio, 94.95, Spreadable Butter w/ Olive Oil.

• Strawberry Yogurt
First: Morningstar Foods, Richland Center, Wis., 98, Strawberry Yogurt.
Second: Morningstar Foods, Richland Center, Wis., 97.6, Strawberry Yogurt.
Third: Upstate Niagara Cooperative, Buffalo, N.Y., 96.9, Corporate Brands Lowfat Strawberry Yogurt.

• Blueberry Yogurt
First: Morningstar Foods, Richland Center, Wis., 98.6, Blueberry Yogurt.
Second: Upstate Niagara Cooperative, Buffalo, N.Y., 97.45, Corporate Brands Lowfat Blueberry Yogurt.
Third:Brookshire Grocery Co., Tyler, Texas, 96.75, Lowfat Blueberry Yogurt.

• Open Flavor Class Yogurt
First: Upstate Niagara Cooperative, Buffalo, N.Y., 100, Upstate Farms All Natural Lowfat Vanilla Yogurt.
Second: Morningstar Foods, Richland Center, Wis., 99.15, Open Flavor Class.
Third: Morningstar Foods, Richland Center, Wis., 98.95, Open Flavor Class.

• Drinkable Yogurts
First: Don Francisco Cheese, Riverbank, Calif., 99.75, Yomex Strawberry Banana #1.
Second: Marquez Brothers International, Hanford, Calif., 99.5, Drinkable Mango.
Third: Marquez Brothers International, Hanford, Calif., 99.1, Drinkable Peach.

• Regular Vanilla Ice Cream
First: Sassy Cow Creamery, Columbus, Wis., 99.25.
Second: Prairie Farms, Carlinville, Ill., 99.05.
Third: Stewarts, Saratoga Springs, N.Y., 98.1.

• French Vanilla Ice Cream
First: Stewarts, Saratoga Springs, N.Y., 97.3.
Second: Ashby’s Sterling Ice Cream, Shelby Township, Mich., 97.2.
Third: Marble Slab Treateries, Atlanta, Ga., 96.35.

• Philly Vanilla Ice Cream
First: Purity Dairies, Nashville, Tenn., 99.65, Philly Vanilla Ice Cream.
Second: Stewarts, Saratoga Springs, N.Y., 96.35, Philly Vanilla Ice Cream.
Third: Ashby’s Sterling Ice Crea. Shelby Township, Mich., 96.3, Vanilla Bean Ice Cream.

• Regular Chocolate Ice Cream
First: Gifford’s Dairy, Skowhegan, Maine, 99.8.
Second: Brookshire Grocery Co., Tyler, Texas, 98.7.
Third: Stewarts, Saratoga Springs, N.Y., 98.25.

• Dark Chocolate Ice Cream
First: Stewarts, Saratoga Springs, N.Y., 99.05, Dark Chocolate.
Second: Chocolate Shoppe Ice Cream, Madison Wis., 97.35, Zanzibar Chocolate.
Third: Coop’s Microcreamery, Watertown, Mass., 96.95, OMFG Chocolate Ice Cream.

• Raspberry Sherbet
First: Kemps, Cedarburg, Wis., 98.3.
Second: Cedar Crest Ice Cream, Manitowoc, Wis., 98.
Third: Prairie Farms, Carlinville, Ill., 96.15.

•Open Class Ice Cream & Sherbet
First: Kelley Country Creamery, Fond du Lac, Wis., 98.55, Karen’s Crazy Cake.
Second: Kelley Country Creamery, Fond du Lac, Wis., 97.9, Leo’s Butter Pecan.
Third: Thrifty Ice Cream, El Monte, Calif., 97.6, Cookies N Cream.

• Frozen Yogurt
First: Kemps, Cedarburg, Wis., 99, Frozen Yogurt Heath Butter Finger.
Second: Kemps, Cedarburg, Wis., 98.8, Frozen Yogurt Chocolate.
Third: Cedar Crest Ice Cream, Manitowoc, Wis., 97.1, Strawberry Cheesecake Frozen Yogurt.

• Regular Cottage Cheese
First: Old Home Foods , New Brighton, Minn., 99.3, Reduced Sodium Cottage Cheese.
Second: Old Home Foods, New Brighton, Minn., 99.1, Large Curd Cottage Cheese.
Third: Louis Trauth Dairy, Newport, Ky., 98.8, 4 percent Cottage Cheese- Small Curd.

• Lowfat Cottage Cheese
First: Dean Foods of Indiana, Rochester, Ind., 99.35.
Second: Prairie Farms, Quincy, Ill., 98.65.
Third: Louis Trauth Dairy, Newport, Ky., 98.6.

• No Fat Cottage Cheese
First: Purity Dairies, Nashville, Tenn., 98.65.
Second: Purity Dairies, Nashville, Tenn., 98.5.
Third: Louis Trauth Dairy, Newport, Ky., 98.3.

• Flavored Cottage Cheese
First: Kemps, Cedarburg, Wis., 99.3, Cottage Cheese w/Chive.
Second: Upstate Niagara Cooperative, Buffalo, N.Y., 96.95, Bison Pineapple Cottage Cheese.
Third: Westby Cooperative Creamery, Westby, Wis., 95.9, 2 percent Cottage Cheese w/Strawberry.

• White Milk
First: Purity Dairies, Nashville, Tenn., 100.
Second: Shatto Milk Co., Osborn, Mo., 99.9.
Third: Organic Farm Marketing, Thorp, Wis., 99.85.

• Whole Chocolate Milk
First: Country Delite Farms, Nashville, Tenn., 100.
Second: Louis Trauth Dairy, Newport, Ky., 99.9.
Third: Burbach’s Countryside Dairy, Hartington, Neb., 99.6.

• Lowfat Chocolate Milk
First: Prairie Farms Dairy, Anderson, Ind., 99.85, Lowfat Chocolate Milk.
Second: Purity Dairies, Nashville, Tenn., 99.75, Lowfat Chocolate Milk.
Third: Cass Clay Creamery, Fargo, N.D., 99.7, Swiss Style Chocolate Milk.

• Cultured Milk
First: Brookshire Grocery Co., Tyler, Texas, 99.45, Cultured Buttermilk.
Second: Country Delite Farms, Nashville, Tenn., 99.15, Cultured Milk.
Third: Louis Trauth Dairy, Newport, Ky., 98.7, Cultured Milk.

• Open Class Pasteurized Milk
First: Shatto Milk Co., Osborn, Mo., 99.95, Flavored Root Beer Milk.
Second: Shatto Milk Co., Osborn, Mo., 99.65, Flavored Strawberry Milk.
Third: Turner Dairy Farms, Pittsburg, Pa., 99.5 , 1 percent White Milk.

• Sour Cream
First: Purity Dairies, Nashville, Tenn., 99.75.
Second: Louis Trauth Dairy, Newport, Ky., 99.65.
Third: Westby Cooperative Creamery, Westby, Wis., 99.45.

• Lowfat Sour Cream
First: Kemps, Cedarburg, Wis., 99.6, Sour Cream Light.
Second: Upstate Niagara Cooperative, Buffalo, N.Y., 98.65, Bison Light Sour Cream.
Third: Hermosa Farms, City of Commerce, Calif., 98.1, Lowfat Sour Cream.

• Sour Cream Based Dips
First: Cass Clay Creamery, Fargo, N.D., 100, Green Chili Dip.
Second: Brookshire Grocery Co., Tyler, Texas, 99.975, South of the Border Dip.
Third: Prairie Farms. Ft. Wayne, Ind., 99.9, Ranch Dip.

• Plain Cream Cheese
First: Kraft Foods, Lowville, N.Y., 99.35, Temp Tee Cream Cheese.
Second: Kraft Foods, Glenview, Ill., 99.25, Brick Regular Cream Cheese #3.
Third: Kraft Foods, Glenview, Ill., 99.05, Brick Neufchatel Cream Cheese #2.

• Flavored Cream Cheese
First: Kraft Foods, Lowville, N.Y., 99.1, Salmon Cream Cheese.
Second: Franklin Foods, Enosburg Falls, Vt., 99.05, Green Mt.Farms-Blue and Chive.
Third: Kraft Foods, Glenview, Ill., 98.9, Reduced Fat Chive and Onion #3.

• Whipping Cream
First: Cass Clay Creamery, Fargo, N.D., 100, Country Style Heavy Cream.
Second: Louis Trauth Dairy, Newport, Ky., 99.8, Whipping Cream.
Third: Turner Dairy Farms, Pittsburgh, Pa., 99.65, Heavy Whipping Cream.

• Whey
First: Swiss Valley Farms, Monona, Iowa, 100, Whey Powder.
Second: Foremost Farms USA, Plover, Wis., 99.85, 50 percent Demineralized Whey.
Third: Foremost Farms USA, Plover, Wis., 99.6, Whole Whey Powder.

• Whey Permeate
First: Bongards Creameries, Perham, Minn., 99.35.
Second: Proliant Dairy Ingredients, Ankeny, Iowa, 98.9.
Third: Agri-Mark, Montpelier, Vt., 98.45.

• WPC-34 percent
First: Associated Milk Producers Inc., Paynesville, Minn., 99.75.
Second: Foremost Farms USA, Sparta, Wis., 99.05.
Third: Foremost Farms USA, Plover, Wis., 98.75.

• WPC-80 percent
First: Bongards Creameries, Perham, Minn., 99.35.
Second: Hilmar Ingredients, Hilmar, Calif., 99.
Third: Agri-Mark, Montpelier, Vt., 98.75.

• Whey Protein Isolates
First: Bongards Creameries, Perham, Minn., 99.8.
Second: Hilmar Ingredients, Hilmar, Calif., 99.1.

• Whey Based Sports/Energy Drink
First: Galloway Co. on behalf of Global, Neenah, Wis., 99.7, Fitness Edge-Tropical Orange.
Second: Winder Farms, West Valley City, Utah, 99.5, Whey Based Sports/Energy Drink.
Third: Galloway Co. on behalf of Global, Neenah, Wis., 99.15, Fitness Edge-Wild Berry.

• Creative & Innovative Products
First: Maggie Moo’s Ice Cream and Treatery, Atlanta, Ga., 99.5, Maggie Mia’s Supreme Ice Cream Pizza.
Second: Franklin Foods, Enosburg Falls, Vt., 99, Green Mt. Farms Tzatzike Savory Yogurt-Cucumber Garlic.
Third: Marquez Brothers International, Hanford, Calif., 97.5, Arroz Con Leche (Rice Pudding).

CMN

WASHINGTON — The Mexican government this week announced that it plans to impose tariffs of 20 to 25 percent on several major categories of U.S. exports to Mexico, including many cheeses such as Cheddar, Mozzarella, Gouda, Provolone, Colby, Monterey Jack, cream cheese and others.

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) say that according to the Mexican government, this action is being taken as part of Mexico’s ongoing effort to seek U.S. compliance with its North American Free Trade Agreement (NAFTA) obligation to provide Mexico with cross-border trucking access into the United States.

The retaliation has been authorized by a NAFTA Dispute Settlement Panel due to lack of U.S. compliance with NAFTA transportation obligations, NMPF and USDEC say. They add that with respect to the newly-published retaliation list, Mexico notes it has “yet to receive a formal proposal for the resolution of this dispute and an unequivocal signal that the U.S. government is working to eliminate the barriers that Mexican long-haul carriers face to access the U.S. market.”

In March 2009, Mexico applied a first round of tariffs on 89 U.S. products, which did not include cheese or other notable dairy products, NMPF and USDEC note.

The International Dairy Foods Association (IDFA) says it opposes the new tariffs and, as an interim step, was able to lessen the impact for its members by achieving a significant reduction in the tariffs for these cheeses.

After learning several months ago that the Mexican government was contemplating a new list of tariffs and that dairy products likely would be included, IDFA says it hired a consultant to work with Mexican officials. Although IDFA was not able to keep cheese off the list, it was successful in decreasing the tariff limit.

“As a direct result of IDFA and its consultant working with the Mexican government, the tariffs on cheese have been reduced from the initially proposed rate of 125 percent to 25 percent,” says Clay Hough, IDFA senior group vice president. “We will continue to work with our industry partners to further minimize, if not eliminate, the impact that the trucking dispute is having on U.S. dairy exports to Mexico.”

Jerry Kozak, president and CEO, NMPF, says the tariffs come at a “terrible time for U.S. dairy producers still struggling to recover from the cost-price squeeze endured throughout 2009.

“In order to help restore profitability and stability to America’s hard-working dairy producers, we should be doing all we can to help boost our exports, not pursuing policies that cost us existing sales in critical foreign markets,” Kozak says.

NMPF and USDEC are calling on the administration to immediately offer a concrete proposal for resolution of this issue.

Tom Suber, president, USDEC, says that after working over the past several years to cultivate the Meixcan cheese market, “it is deeply disturbing to now see our exports hindered by lack of U.S. action to resolve such a long-standing issue with our most important trading partner.”

U.S. Trade Representative Ron Kirk says that he and U.S. Department of Transportation Secretary Ray LaHood are working with other agencies and stakeholders in Congress seeking to resolve the issue “in a way that addresses safety concerns and upholds our trade obligations.

“We are committed to continuing to work with members of Congress and our counterparts in Mexico to resolve the dispute and end these duties,” Kirk says.

CMN

ARCATA, Calif. — Cypress Grove Chevre founder Mary Keehn this week announced her company has been purchased by Emmi Holding (USA) Inc. Cypress Grove Chevre will continue operations with its current leadership and in the same location in Humboldt County, Calif.

“We have been approached several times in recent years by companies that wanted to purchase us, but it was never the right time or fit,” Keehn says. “In Emmi we have found a partner that shares our values and commitment to quality and offers us the resources to invest in our creamery, our employees and our local farms. We will be able to continue doing what we do well and even improve in the areas of quality and innovation.”

Emmi, the largest milk processor in Switzerland, also acquired Wisconsin specialty cheese company Roth Käse in 2009 to form Emmi-Roth Käse USA.

“Together we have more opportunities for growth and success,” says Fermo Jaeckle, CEO of Emmi-Roth Käse USA, on the Cypress Grove acquisition. “As cheesemakers, we are committed to American-made artisan cheeses, and goat cheeses have played a leading role in the remarkable growth of this category.”

Keehn, who founded Cypress Grove in 1983, says ensuring a successful future for the company was first and foremost in her mind when making the decision to sell it.

“It was a difficult, but very good decision for the future of the company, our employees, the local farms and the quality of our products,” Keehn says, adding that she will be able to spend more time exploring new styles of cheeses and developing new products. “I have so many ideas, but we’ve been limited by time and resources. This infusion of expertise and capital will allow us to explore new avenues and grow in a healthy manner.”

CMN

By Alyssa Sowerwine

MADISON, Wis. — Several mergers, partnerships and acquisitions in the dairy industry have been announced this month, leaving some wondering if more are on the horizon.

Pacific Cheese, Hayward, Calif., this week announced it is acquiring the assets of Chateaux Cheese Corp., Vernon, Calif. Associated Milk Producers Inc., New Ulm, Minn., also recently announced it is selling its instant milk business to TreeHouse Foods Inc., Westchester, Ill. (See related articles in this issue.)

Meanwhile, last week Northwest Dairy Association (NDA), Seattle, Wash., and its marketing subsidiary, Darigold Inc., announced it will be combining its respective business operations with cooperative Country Classic Dairies, Bozeman, Mont.

In addition, Swiss Valley Farms Cooperative, Davenport, Iowa, announced it has acquired Faribault Dairy Co. Inc., Faribault, Minn. Swiss Valley also is partnering with Emmi-Roth Käse USA, Monroe, Wis., on a joint venture to manufacture cheese in Shullsburg, Wis.

Also last week, Allied Dairy Products, the owner of cheese and dairy ingredient supplier MCT Dairies, announced the acquisition of dairy importer Trugman-Nash Inc.

• Coincidence or trend?

Robert Chesler — account executive and broker with Downes-O’Neill, part of the foodservice division of FCStone Group — says these recent announcements “seem somewhat fitting” given the difficult economic climate.

“When you see an industry with price difficulties like the dairy industry has had for the past 18 months, you expect to see the need for consolidation and partnerships,” Chesler says.

Chesler notes that the merging of NDA and Country Classic comes with little surprise from two companies who have had a very close relationship for many years.

In fact, following a relatively quiet year for mergers and acquisitions in 2009, the first half of 2010 demonstrated a marked uptick in deals across many segments in the food industry, says a new report from The Food Institute.

The institute’s report shows a 29.9 percent increase in mergers in the first half of 2010 over the first half of 2009.

The report says that activity among food processors grew at a modest rate, with the biggest increases occurring in multi-product, snack food, and fruit and vegetable processors.

Chesler notes Swiss Valley’s sale of its hard Italian cheese business earlier this year to DairiConcepts — a joint venture between Fonterra and Dairy Farmers of America — may have put the company in a stronger position for the Faribault acquisition.

“Those companies that are well-position financially are able to get good value on their money in strategic investments,” he says. “Perhaps Swiss Valley is switching their approach. They sold the Italian business, and now they’ve acquired a specialty cheese company.”

Last year’s financial climate was not as conducive to mergers and acquisitions as the current economic climate, says Robert DeBruin, CPA and shareholder of Schenck, a full-service regional accounting and consulting firm based in Appleton, Wis. DeBruin also serves as president of Schenck Corporate Finance Solutions, supervising the firm’s merger and acquisition areas.

Last year, financial market and banking uncertainty likely made many potential acquirers hesitant to take action, DeBruin says.

However, as the financial landscape has improved somewhat, more companies are making a move in 2010, he adds.

However, DeBruin says he doesn’t think a down economy is the main factor in the slew of recent merger and acquisition announcements, as the dairy and food industries have been relatively stable compared to other sectors, such as those that produce discretionary items and have taken a hit on sales.

“People continue to consume food, and dairy consumption has been relatively steady,” he says.

Robert Wills, owner of Cedar Grove Cheese, Plain, Wis., also says the economy likely isn’t the main factor in industry consolidation.

“People are looking for more diversity in their product base,” Wills says.

He does note, however, that some mergers could be motivated by the fact that larger retailers are becoming a larger part of dairy companies’ customer base.

“They can be very demanding on the level of the supply they need,” he says.

• Future consolidation

Chesler says he expects to see more consolidation in the dairy industry in the next 6-12 months.

He notes the farm sector has been in a period of consolidation for some time, and now it is possibly catching up to the processor side.

Chesler says he also anticipates more U.S.-based companies will tap into the growing world market and possibly expand operations abroad or join with foreign companies, in addition to foreign companies looking to tap into U.S. markets.

“I think the economy is a big part of this, but I also think it feels like a smaller world as we continue to move forward,” he says.

DeBruin also notes that the U.S. dairy industry, particularly in the Midwest, is an attractive acquisition target for both U.S. and global companies.

“As global interest increases, I think you’re doing to see even more of these types of announcements,” he says. “A lot of other U.S. industries have had more financial difficulty, so there likely will be serious consideration of the food and dairy sector as an attractive option.”

Carl Herbein — president and CEO of Herbein and Co., a Reading, Pa.-based financial service firm that advises industries including cheese and dairy — also says he expects to see more acquisition of U.S. companies by global companies.

“I think many global companies are thinking, ‘I can acquire a U.S. business rather than coming in and competing with my products,’” he says, adding that this can be a win-win situation for both companies involved.

Rita Keskinyan, managing director of Rabobank International in North America and head of the North American M&A dairy business, also says dairy industry consolidation is a trend that will continue.

“I think consolidation across the dairy industry is happening and will continue to happen,” Keskinyan says.

Keskinyan notes that during the economic downturn, consumers pulled back from foodservice purchases and turned more to value-added products like specialty cheese at the retail level.

For this reason, commodity-producing companies will continue to look for opportunities to expand their product base into the value-added sector, she adds.

“Clearly, the whole trend in the North American market of looking at specialty cheese is one that will continue,” Keskinyan says. “I think it’s fair to assume that businesses which need to grow to meet demand will look to establish partnerships and tap collective resources.”

• Small-scale operations

So where does all this consolidation leave small-scale dairy operations who aren’t looking to merge?

“Smaller companies either will find niche markets or struggle,” Chesler says. “The speciality cheese market, in particular, will continue to persist domestically.”

Keskinyan says that, going forward, smaller businesses will be competing against consolidating players, which will make it more difficult for small businesses to support the growth in demand for specialty products, thereby requiring more capital and equity.

DeBruin notes that running a successful dairy operation requires constant reinvestment and upgrading of equipment to stay competitive, which is harder for some smaller companies.

“You have to find your niche,” DeBruin says, adding that this is becoming more difficult as large companies begin to acquire more niche products.

“It’s very important that specialty producers tap into an appropriate distribution network for their products,” he says.

Wills, who notes that his company is a smaller operation, says one way Cedar Grove is able to compete is its attention to customers’ needs.

“We can do things better on a smaller scale because we care about our customers and are responsive to their requests,” he says.

Wills says Cedar Grove also is very innovative and adjusts its products based on customer feedback.

Herbein notes that companies who want to stay competitive should have good records and cost accounting and know how they stack up against other companies in the industry.

“You should know where you stand,” he says, adding that Herbein and Co. is doing more business evaluation work with many of its dairy clients.

CMN

WASHINGTON — With progress long stalled on a Senate food safety bill, a meeting this week renewed hope that lawmakers may take up the legislation once they return from recess in September.

Late this week, a bipartisan group of senators — including Tom Harkin, D-Iowa, chair of the Senate Health, Education, Labor and Pensions Committee; ranking member Mike Enzi, R-Wyo.; bill authors Richard Durbin, D-Ill., and Judd Gregg, R-N.H.; and lead cosponsors Chris Dodd, D-Conn., and Richard Burr, R-N.C. — released a full manager’s package on S. 510, the FDA Food Safety Modernization Act, as well as a Congressional Budget Office (CBO) analysis.

In a joint statement, the senators say they “look forward to working with our respective leaders to take up this bipartisan legislation as soon as possible.”

“Any 100-year-old plus structure — like our nation’s food safety system —needs improvements,” the senators say. “With this announcement, we aim to not just patch and mend our fragmented food safety system, we hope to reinforce the infrastructure, close the gaps and create a systematic, risk-based and balanced approach to food safety in the United States.”

The House passed their version of food safety legislation, the Food Safety Enhancement Act, last year.

Highlights of the Senate manager’s package include:

• Requiring facilities that manufacture, process, pack or hold food to have in place risk-based preventive control plans to address identified hazards and prevent adulteration, and give FDA access to these plans and relevant documentation. Lawmakers note these requirements do not apply to restaurants or most farms.

• Requiring importers to verify the safety of foreign suppliers and imported food, and creating a voluntary qualified importer program in which importers with a certification of safety for their foreign supplier can pay a user fee for expedited entry into the United States.

• Giving FDA the authority to order a mandatory recall of a food product if the food will cause serious adverse health consequences or death and a company has failed to voluntarily recall the product upon FDA’s request.

• Providing training for facilities to come into compliance with new safety requirements and including special accommodations for small businesses and farms. Lawmakers note this does not interfere with current organic farming practices and does not change the current definition of farm under the 2002 Bioterrorism Act.

• Enhancing surveillance systems to detect foodborne illnesses.

• Requiring FDA to establish a pilot project to test and evaluate new methods for rapidly tracking foods in the event of a foodborne illness outbreak.

• Increasing funding for FDA’s food safety activities through increased appropriations and targeted fees for food facility inspection, food recalls and the voluntary qualified importer program.

According to Jerry Slominski, senior vice president of legislative and economic affairs at the International Dairy Foods Association (IDFA), although senators have reached an agreement, it doesn’t necessarily mean the bill will be debated and passed in the fall.

“I’m not sure what this means for the floor process,” he says. “However, the way I see this, it’s another step that will move it to the Senate floor.”

Slominski adds IDFA is in general support of the Senate bill but has yet to view the complete manager’s package.

Meanwhile, a group of lawmakers recently voiced concerns on inadequate funding for FDA.

Five congressmen last week sent a letter to Kathleen Sebelius, secretary of the U.S. Department of Health and Human Services, seeking higher finding for FDA in the fiscal year 2012 budget request.

The letter — signed by Harkin and Reps. Henry Waxman, D-Calif., John Dingell, D-Mich., Frank Pallone, D-N.J., and Bart Stupak, D-Mich. — says FDA has become an agency reduced to “management by crisis,” continually forced to address the most recent crisis instead of preventing the next one.

“There is no doubt that the chronic lack of resources at FDA has been a primary cause of these regulatory failures,” the letter says.

The lawmakers note that recent foodborne disease outbreaks and other incidents could cause the public to view FDA has a failed agency, “not because the agency isn’t doing its best, but because FDA simply doesn’t have the resources to be fully effective.”

The letter requests Sebelius ensure that the FDA fiscal year 2012 budget request reflects the urgency of findings by national experts — such as reports from the Government Accountability Office and Institute of Medicine documenting serious funding deficits facing FDA — by setting forth a funding level that allow’s FDA to fulfill its role.

“Your team at FDA is demonstrating a strong commitment to public health, but we must support them with the necessary resources to be successful,” the lawmakers write.

CMN

HAYWARD, Calif. — Pacific Cheese Co. this week announced it has acquired the assets of Chateaux Cheese Corp., Vernon, Calif., a privately-held manufacturer of pasteurized process cheeses.

The Chateaux Cheese operation will be integrated into Pacific Cheese, company officials say. Financial terms of the transaction were not disclosed. The transaction is the second expansion of Pacific Cheese in 2010; earlier this year, the company acquired the assets of Atlantic Cheese, based in North Carolina.

According to Stephen Gaddis, president, Pacific Cheese, the combination of Pacific Cheese and Chateaux Cheese creates one of the country’s largest broad line cheese suppliers.

In addition, the acquisition adds extensive process cheese capabilities to Pacific Cheese and accelerates its strategic initiative to offer customers one-stop shopping with a “world” of cheese options, he says.

“Our goal is to provide every customer with a specialized combination of products and services that best supports their unique needs,” Gaddis says. “Processed cheese is a key ingredient for many restaurant chains, and we want to meet that need with the finest quality product.”

Pacific Cheese will integrate Chateaux’s operation into its Reno, Nev., facility, currently planned to be completed by the end of this year, Gaddis says, adding that Pacific Cheese will be moving its own processed cheese line to Reno from its Hayward, Calif., plant.

In addition, Peter Ernster Jr., president of Chateaux Cheese, has joined Pacific Cheese as vice president of the processed products division.

With the acquisition, Pacific Cheese’s product line will be expanded to include pasteurized process cheese made from natural cheese, including blocks, loaves, chunks, shreds and slices; controlled melts such as no melt, high melt, restricted melt, restricted spread and easy melt; sauces; and imitation cheese.

CMN

WASHINGTON — In its “World Agricultural Supply and Demand Estimates” report released Thursday, USDA increased its forecasts for both 2010 and 2011 milk production.

As producers continue to add cows to the U.S. dairy herd and the rate of growth in milk per cow has increased, production in 2010 is now forecast at 192.0 billion pounds, up 800 million pounds from last month’s forecast, and 2011 production is forecast at 194.6 billion pounds, up 1.1 billion pounds from last month.

USDA’s export forecast for 2010 and 2011 is raised sharply as June exports were strong, global supplies remain relatively tight and demand in a number of markets is expected to support higher than previously forecast sales. 2010 commercial exports on a fat basis are forecast at 6.3 billion pounds, up 1.0 billion pounds from last month, and exports on a skim-solids basis are forecast at 28.8 billion pounds, up 2.5 billion pounds from last month.

Export sales in 2011 will be dampened by increased competition, but USDA still has increased its forecast for dairy exports on a fat basis to 5.6 billion pounds and exports on a skim-solids basis to 28.0 billion pounds, up 500 million and 700 million pounds, respectively.

Strong demand for butter and cheese resulted in higher forecast prices for 2010, but the prices for nonfat dry milk (NDM) and whey are lowered from last month.

Cheese in 2010 now is forecast to average $1.500-$1.520 per pound, and butter is forecast to average $1.610-$1.650. NDM in 2010 is forecast to average $1.145-$1.165, and dry whey is forecast at $0.360-$0.380.

The Class III price forecast for 2010 is raised as the higher cheese price more than offsets the lower whey price, but the Class IV price forecast is reduced as the lower NDM price more than offsets the higher butter price. The Class III price is forecast to average $14.15-$14.35 per hundredweight this year. The Class IV price is forecast to average $14.50-$14.80. The 2010 all-milk price is forecast to average $15.90-$16.10.

For 2011, cheese, NDM and whey price forecasts are reduced but butter is raised. For 2011, the Class III and Class IV price forecasts are lowered from last month’s projections to $14.15-$15.15 and $14.00-$15.10, respectively. The all-milk price is forecast to average $15.55-$16.55 in 2011.

CMN