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Volatility in butter persists
following record high at CME

October 2, 2015

By Alyssa Mitchell

MADISON, Wis. — Butter at the Chicago Mercantile Exchange (CME) showed severe price volatility this week. After reaching a record high of $3.1350 per pound to end last week, butter yo-yoed throughout the week and ended at $2.50, down 63.5 cents from last week.

Butter’s dramatic drop of 30 cents on Tuesday, after falling 8.5 cents on Monday, was the second-largest single-day drop in the past decade. The largest drops have typically been in the fourth quarter. In December 2004, when the butter market traded just three times per week, butter fell 40 cents from $2 per pound Dec. 8, 2004, to $1.60 Dec. 10, 2004. In 1998, when butter traded once per week, it fell 42.5 cents between the weeks ending Nov. 13, 1998, and Nov. 20, 1998, from $1.75 to $1.325 per pound.

USDA’s Dairy Market News says bulk butter demand is making a comeback as buyers witness lower pricing on various trading platforms.

“With the recent declines in butter prices at the CME Group, butter producers are hesitant to build inventories much beyond volumes needed to meet booked sales,” Dairy Market News says.
Central butter manufacturers report cream is available, Dairy Market News adds.

“Some Western cream is clearing into the central region to meet Class II, III and IV demand,” Dairy Market News says. “The increased availability of cream is also a result of central ice cream producers slowing production on bulk and individual serving lines as demand for those items declines in step with the arrival of fall.”

“Just when you think you’ve seen it all, you see something new again,” says Phil Plourd, president and CEO of Blimling and Associates Inc., Madison, Wisconsin.

Plourd and Bill Curley, vice president and chief economist, Blimling and Associates, held an online 2015 Cream Symposium on Tuesday.

They note that quite often, record-setting commodity prices one year will trigger much lower prices the next, but that has not been the case for U.S. butterfat markets. While global pricing has drifted to multi-year lows, the domestic market has thrown convention out the window.

Plourd notes that tightness in the cream market, along with much of U.S. milk production flowing into cheese vats and increased domestic demand for full-fat dairy, are some of the primary factors leading to the butter run-up in recent weeks.

Eric Meyer, president of HighGround Dairy, Chicago, says he expects to see more volatility from CME butter for the next 30 days.

“We will continue to see this choppiness, which will wreak havoc on the futures market,” he says.
Meyer notes that by the end of October 2014, butter was down to $1.77 per pound. However, this year is unlike others, he says.

“There seems to be a stronger demand story than in the fall of 2014,” he says. “Until churns can get going again, the sentiment is that butter is needed for immediate needs, which will keep a choppy market in place.”

He adds that he anticipates a higher end-of-year low for butter compared to 2014, but it still will likely be below $2.

Dairy Market News says that although the recent price spike and decline for butter at the CME Group may have temporarily scared off a few buyers, active butter demand from retailers continues to push production and draw butter out of inventory.

Dave Kurzawski, a senior broker with INTL FCStone, Chicago, says he foresees at least a month of continued volatility ahead for butter, but it could reach a support level around $2.50 per pound for now.
“The number of loads that have traded year-to-date is significantly lower year over year,” he notes. “Year-to-date, roughly 300 loads have traded hands versus the roughly 700 last year. This is noteworthy as it is likely further proof that a larger portion of the stocks on hand are currently owned by users, not the manufacturers.”
Plourd notes that the futures market suggests butter will end the fourth quarter around $2.25 per pound before falling to $1.82 in the first half of 2016.

Another commodity to see some increased price movement at the CME this week is nonfat dry milk (NDM), which increased 10 cents on Thursday, pushing it to $1.06 per pound, the first time it has been at or above $1 since March 11.

Kurzawski notes there are some elements of rumors, including that China is playing a part in nonfat demand, at play.

“Credible or not, it seems that it may be enough to those with upside price exposure interested in locking in some sort of need going forward,” he says. “Others may have buying value as we seemed to have bottomed out. Needless to say, the tone has been firm, and we expect that to continue in the short term.”

Dairy Market News says market participants report domestic and international buyer interests for NDM are firming as acceptance increases of the idea that a market rebound is taking place.

“Several end users indicate striking fixed-price contracts for mid- to long-term use is attractive right now, based on that understanding of market conditions,” Dairy Market News says. “As the new month looms, though, some producers are now less willing to enter into fixed price contracts compared to those based on a variable index.”

Meanwhile, CME cheese continues to be the weakest of the three commodities in terms of a price rally, Meyer says.

“A lot of milk is going into cheese production, and the futures market is struggling to rally in the front months,” he says.

CME Cheddar barrels went as low as $1.46 per pound last week but have recovered some this week, reaching $1.6175 today. Cheddar blocks saw some price strength this week, climbing 15.75 cents to $1.7475.

Meyer says while CME cheese could see a short-term holiday buying bump, it will remain weaker overall through the fourth quarter.

“$1.40-$1.50 cheese to start off 2016 is very feasible,” he says.

Kurzawski says the risk is to the downside for CME cheese, but buyers also are active.

“We likely won’t see it fall out until next year,” he says. “While we don’t see support for a rally, the market has underpinning support to it now that I don’t think will go away this month or next.”


OTA submits proposal, requests
USDA hearing to amend FMMOs

October 2, 2015

WASHINGTON — The Organic Trade Association (OTA) this week submitted a proposal to USDA requesting that USDA call a hearing to amend all federal milk marketing orders’ (FMMOs) regulation of organic milk.

Charles M. English Jr. of Davis Wright Tremaine LLP, Washington, on behalf of OTA’s Milk Working Group — which comprises Aurora Organic Dairy, CROPP Cooperative (which includes the Organic Valley label) and WhiteWave Foods — filed the request for a hearing to amend all FMMOs through the adoption of a new section to be titled “Producer-settlement fund alternative payments by a handler for USDA-certified organic milk.”

The proposal, if adopted, would continue USDA’s minimum price regulation of organic milk; retain USDA’s information gathering and dissemination regarding organic milk; continue to require that organic milk handlers report to, be audited by and pay the market administrator in the same manner as all other handlers; and provide organic handlers who make an annual election with an alternative mechanism based on the historical “Wichita Option” for meeting their producer-settlement fund obligations.

The proposal notes that since 2003, the organic dairy category has grown 356 percent and ended 2013 at nearly $5 billion in annual sales. In 2014, consumer sales of all organic food and non-food products in the United States reached more than $39 billion, up 11.3 percent from 2013.

The proposal notes that USDA-certified organic milk is thus a relatively new product category that is entirely distinguished from conventional milk by USDA’s Agricultural Marketing Service (AMS). However, the FMMOs were not designed to address the challenges presented by this dynamic growth for organic dairy farmers, processors or consumers.

Though defined differently and not interchangeable by law, organic and conventional Grade A milk has been and remains treated identically for minimum price and pooling purposes by FMMOs. As a result, the mechanisms of the FMMOs include organic volume but only affect the conventional marketplace, the proposal notes.

However, by regulation enforced by the National Organic Program (NOP), USDA-certified organic milk and conventional milk are not and cannot be interchangeable products. Co-mingling USDA-certified organic milk with conventional milk in any fashion causes the certified organic milk to lose its organic status.

“This reality makes it impossible for near-term FMMO policies to impact or benefit the organic marketplace,” the proposal says. “Accordingly and unlike conventional milk, USDA-certified organic milk tends to be purchased under long-term, forward priced contracts. USDA organic milk is not purchased under the classified pricing system employed by cooperatives prior to the adoption of FMMOs or generally employed by FMMOs thereafter.”

The proposal notes that given the lack of interchangeability of conventional milk for USDA-certified organic milk, if an organic milk processor is short of organic milk, it cannot just supplement with conventional milk from the FMMO because that milk may not be sold as organic or co-mingled with organic milk. In addition, the Class I differential and FMMO shipping requirements are meaningless when it comes to an organic processor obtaining milk, the proposal adds.

“Thus, FMMOs presently fail to ‘bring forth an adequate supply’ of USDA-certified organic milk. This is a significantly disorderly marketing condition that is made worse, not better, by FMMOs,” the proposal says.
OTA’s proposal seeks to remedy the current disorderly marketing conditions that result from organic milk contributing money to producer settlement funds without any evidence that the FMMOs can provide an adequate supply of organic milk to organic processors.

The proposal would not exempt organic milk from the FMMOs but rather provide for an alternative, audited mechanism for USDA-certified organic milk handlers to meet their minimum price obligations under the various orders.

In addition, since no outright exemption is sought, organic handlers would continue to report volume and prices paid for milk to the various market administrators, the proposal says. Organic handlers would remain subject to audit and verification of their books and records by the market administrators and organic handlers would continue to pay, at the same rate as all other handlers, the market administrator assessments under the order.

AMS still would be able to collect and disseminate information collected from organic handlers under the proposal. Further, the proposal would apply only to USDA-certified organic milk and not to other differentiated milk products that are not subject to the certification requirements of the NOP.

Instead of an exemption, the proposal would amend FMMOs to permit organic milk handlers to elect on an annual basis to account to the FMMO producer settlement funds based upon either the current method of payment or on a basis similar to that permitted for partially regulated plants under a modified version of the “Wichita Option.”

An organic processor electing this modified Wichita Option would receive a credit against its payment to the producer-settlement fund for the amount by which the prices paid to its organic dairy farmers for all of its milk (not on a classified basis) exceeded the Class I price of the milk for the month, plus a threshold amount set at $2.90 per hundredweight. The credit, however, could never reduce the payment due by an electing handler below zero, i.e., an organic handler making the election could not receive a payment out of the producer settlement fund.

In addition, any handler making the modified Wichita Option election could not use the volume of USDA-certified organic milk to qualify conventional milk for diversion.

The $2.90 proposed threshold is used because it is the average net over-order premium announced for conventional Class I milk by the Central Milk Producers Cooperative, the proposal says.

The intent of the proposal is to make the annual election applicable to all certified milk received at the handler’s plant and not just a portion of that certified organic milk. Moreover, it is anticipated that a handler that processes both certified organic and conventional milk would file two handler reports.

OTA acknowledges that conventional milk blend prices would be reduced by a corresponding amount as the modified Wichita Option is utilized. The Upper Midwest Market Administrator’s office has estimated that for the 2-year period ended June 2015, the impact of the proposal, if adopted, assuming all certified organic Class I milk were subject to the credit at the 100-percent level, would be approximately 2 cents per hundredweight; the impacts of Class II, Class III and Class IV are not estimated, and inclusion of those handler reported pounds would reduce the impact on the pool, the proposal notes.

“OTA has no reason to believe that the national blend price impact would be significantly different if the proposal were to be adopted and fully utilized by organic handlers with a 100-percent credit,” the proposal says. “However, the benefit to the organic industry including the vast majority of the USDA-certified organic dairy farmers who qualify as small businesses under the Regulatory Flexibility Act would at least equal this cost to conventional industry. However, if as expected the monies presently paid to the producer settlement fund for the benefit of conventional farmers are invested in further organic milk production, then producers, processors and consumers of organic milk would benefit from adoption of this proposal.

To view the proposal and hearing request, visit


TPP ministers meet; Canada
weighs dairy concessions

October 2, 2015

ATLANTA — This week the United States is hosting a series of meetings of Trans-Pacific Partnership (TPP) trade ministers and chief negotiators in Atlanta, working to resolve a limited number of outstanding issues that remain in the agreement, including those involving dairy trade.

Canada’s reluctance to open its market to U.S. dairy products has been one of the remaining hurdles to an agreement, and Canadian Minister of Foreign Affairs, Trade and Development Ed Fast has received pressure from home not to concede too much in terms of dairy.

“We are in contact with our government representatives, and I trust that they are doing everything to support and defend the interests of Canada’s supply managed farmers,” says Dairy Farmers of Canada (DFC) President Wally Smith. “The Canadian government understands that it is important for the Canadian economy that there are no negative impacts for Canadian dairy farmers at the conclusion of the TPP.”

This week Fast also received a letter from Ontario’s Minister of Economic Development, Employment and Infrastructure Brad Duguid and Minister of Agriculture, Food and Rural Affairs Jeff Leal, urging him to protect the dairy and automotive industries.

“... our government remains extremely concerned at recent reports from international trade experts, and comments by the Prime Minister, which suggest that the Government of Canada is prepared to jeopardize the economic well-being of critical sectors of the economy, in particular Ontario’s agricultural and automotive sectors, in order to finalize a deal,” the ministers write.

“We strongly feel that the integrity of the supply management system must be maintained,” they add. “Our government continues to urge you to recognize the importance of the supply management system in the TPP negotiations, and take time to meet with the many Ontario stakeholders joining us in Atlanta to monitor the negotiations.”

DFC met with Fast on Wednesday and published an update about the negotiations over dairy.
“Minister Fast acknowledged that the U.S. continues to put a lot of pressure on Canada, but that Canada is pushing back as hard as the U.S.,” DFC says.

Earlier this summer, U.S. Sens. Orrin Hatch, chairman, and Ron Wyden, ranking member of the Senate Committee on Finance, wrote to Canada’s Ambassador Gary Albert Doer to urge him to commit to “significant and commercially meaningful market access for all remaining agricultural products” including dairy. (see “Senators urge trade reps to increase dairy market access” in the July 31, 2015, issue of Cheese Market News.)

The International Dairy Foods Association (IDFA) thanked the senators, saying, “Now is the time for Canada to come to the table with a commercially meaningful offer on dairy.”


13th WDE product contest auction raises $25,579

October 2, 2015

MADISON, Wis. — The 13th annual World Dairy Expo Championship Dairy Product Contest auction, held Tuesday evening at the World Dairy Expo in Madison, Wisconsin, raised $25,579.

“We were extremely happy with the overall success of this year’s contest,” says Brad Legreid, executive director of the Wisconsin Dairy Products Association (WDPA), which sponsors the contest. “We had a record number of entries (almost 1,200), and a wider variety of participation than ever before. The unprecedented level of growth clearly reflects how the dairy industry has embraced this contest.”

Legreid notes WDPA started this contest 13 years ago to promote the entire dairy industry. Due to this contest, manufacturers of all dairy products now have new and exciting ways to promote their dairy products, he says.

A portion of the auction proceeds will be used to fund the Dr. Robert L. Bradley Scholarship, Wisconsin Dairy Products Association Scholarship and Madison Area Technical College (MATC) Culinary Foundation Scholarship, which will be awarded annually to students pursuing careers in the dairy industry. WDPA also will use a portion of the proceeds to fund a major sponsorship of the National Collegiate Dairy Product Judging Contest.

In addition, product donations in the past have been made to the MATC Culinary Arts School, University of Wisconsin Food Science Department, the Ronald McDonald House and Second Harvest Food Bank.
Following are the winning bidders for all classes. In some cases, classes were combined into one lot for bid.

• Aged Cheddar — Organic Valley/CROPP Cooperative, La Farge, Wisconsin, purchased the 40 pounds of Aged Cheddar made by Masters Gallery Foods, Plymouth, Wisconsin, for $30 per pound or a total of $1,200.

• Lot 2: Open Classes — Masters Gallery Foods, Plymouth, Wisconsin, purchased the combined 44 pounds of Double Cream Brie made by Old Europe Cheese, Benton Harbor, Michigan; Gouda made by Babcock Hall Dairy, Madison, Wisconsin, and Sartori Classic Asiago made by Sartori Co., Plymouth, Wisconsin, for $35 per pound or a total of $1,540.

• Lot 3: Sharp Cheddar — Masters Gallery Foods purchased the 42 pounds of Sharp Cheddar made by Wisconsin Aging and Grading Cheese, Kaukauna, Wisconsin, for $30 per pound or a total of $1,260.

• Lot 4: Prairie Farms/Muller Pinehurst Combined Class — T.C. Jacoby & Co., St. Louis, purchased the combined 24 pounds of Strawberry Yogurt, 4 Percent Cottage Cheese and 2 Percent Cottage Cheese made by Prairie Farms Dairy, Quincy, Illinois; Sour Cream Ranch Veggie Dip made by Prairie Farms Dairy, Carbondale, Illinois; and Regular Chocolate Ice Cream made by Muller-Pinehurst, Rockford, Illinois, for $40 per pound or a total of $960.

• Lot 5: Gifford’s Combined Class — CRI purchased the combined 30 pounds of French Vanilla Ice Cream and Vanilla Bean Ice Cream made by Gifford’s Famous Ice Cream, Skowhegan, Maine, for $20 per pound or a total of $600.

• Lot 6: Unflavored Pasteurized Process Cheese — Agropur, Weyauwega, Wisconsin, purchased 5 pounds of American Slices made by Bongards Premium Cheese, Bongards, Minnesota, for $40 per pound or a total of $200.

• Lot 7: AMPI Combined Class — Masters Gallery Foods purchased the combined 50 pounds of Mild Cheddar made by Associated Milk Producers Inc. (AMPI), Sanborn, Iowa, and Pasteurized Process Monterey Jack & American Cheese with Reb Bell and Jalapeno Peppers made by AMPI, Portage, Wisconsin, for $35 per pound or a total of $1,750.

• Lot 8: Foremost Farms Combined Class — Ivarson Inc., Milwaukee, purchased the combined 20 pounds of Reduced Fat Provolone made by Foremost Farms USA, Clayton, Wisconsin, and Salted Butter made by Foremost Farms, Reedsburg, Wisconsin, for $50 per pound or a total of $1,000.

• Lot 9: Schreiber Foods Combined Class — Ecolab, St. Paul, Minnesota, purchased the combined 8 pounds of Greek Blueberry Yogurt and Blueberry Yogurt made by Schreiber Foods, Richland Center, Wisconsin, for $100 per pound or a total of $800.

• Lot 10: Chocolate Shoppe Combined Class — Cheese Market News, Madison, Wisconsin, purchased the combined 40 pounds of Old Fashioned Vanilla Ice Cream and Zanzibar Chocolate Ice Cream made by Chocolate Shoppe Ice Cream, Madison, Wisconsin, for $20 per pound or a total of $800.

• Lot 11: Combined Class — Darlington Dairy Supply, Darlington, Wisconsin, purchased the combined 30 pounds of Caraway Brick made by Mill Creek Cheese, Arena, Wisconsin, and Roth Petite Swiss made by Emmi Roth USA, Fitchburg, Wisconsin, for $75 per pound or a total of $2,250.

• Lot 12: Cold Pack Cheese Food — Wisconsin Aging and Grading Cheese purchased 12 pounds of Port Wine Cold Pack Cheese Food made by Pine River Pre-Pack, Newton, Wisconsin, for $82 per pound or a total of $984.

• Lot 13: Butter Class — Ivarson Inc., purchased the combined 35 pounds of 80 Percent Unsalted Butter with Natural Flavors made by Michigan Milk Producers Inc., Constantine, Michigan; Cinnamon Honey Butter made by Pine River Dairy, Manitowoc, Wisconsin; and Salted Whipped Butter made by Kellers Creamery, Winnsboro, Texas, for $50 per pound or a total of $1,750.

• Lot 14: Marquez Brothers Combined Class — AgSource Cooperative Services, Verona, Wisconsin, purchased the combined 3 pounds of El Mexicano Stirred Yogurt Pina Colada and El Mexicano Creama Mexicana: Dairy Based Sour Cream made by Marquez Brothers International Inc., Hanford, California, for $35 per pound or a total of $105.

• Lot 15: Open Class Sherbet — Carlyn Dairy Products Inc., Mundelein, Illinois, purchased the 18.5 pounds of Sunset Rainbow Sherbet made by Cedar Crest Specialties, Manitowoc, Wisconsin, for $30 per pound or a total of $555.

• Lot 16: Combined Class — T.C. Jacoby & Co. purchased the combined 52 pounds of Monterey Jack made by Southwest Cheese, Clovis, New Mexico, and Muenster made by Fair Oaks Farms, Fair Oaks, Indiana, for $20 per pound or a total of $1,040.

• Lot 17: String Cheese — AgSource Cooperative Services purchased the pound of String Cheese made by Burnett Dairy Cooperative, Grantsburg, Wisconsin, for $300 per pound or a total of $300.

• Lot 18: Open Class Cheese — Masters Gallery Foods purchased the 10 pounds of Smoked Gouda with Bacon Spread made by Winona Foods, Green Bay, Wisconsin, for $110 per pound or a total of $1,100.

• Lot 19: Combined Class — Galloway Co., Neenah, Wisconsin, purchased the combined 18 pounds of Provolone made by Dairy Farmers of America, Turlock, California, and Montfort Blue Cheese Wheel made by Arthur Schuman Inc., Fairfield, New Jersey, for $65 per pound or a total of $1,170.

• Lot 20: Combined Class — Grassland Dairy Products, Greenwood, Wisconsin, purchased the combined 4 pounds of Pineapple Cottage Cheese made by Upstate Niagara Cooperative, Buffalo, New York, and Cabot Lowfat Sour Cream made by Cabot Creamery, Waitsfield, Vermont, for $45 per pound or a total of $180.

• Lot 21: Sour-Cream Based Dips-Southwest — Kemps, St. Paul, Minnesota, purchased 2 pounds of its own Top the Tater Fiesta Dip for $130 per pound or a total of $260.

• Lot 22: Mozzarella Class — DuPont, Wilmington, Delaware, purchased the combined 18 pounds of Low Moisture Part Skim Mozzarella made by Lake Norden Cheese Co., Lake Norden, South Dakota, and Fresh Mozzarella Balls in Water made by Formaggio Italian Cheese, Hurleyville, New York, for $45 per pound or a total of $810.

• Lot 23: Frozen Yogurt — Wisconsin Aging and Grading Cheese purchased the 6 pounds of Frozen Yogurt made by Kwik Trip Inc., La Crosse, Wisconsin, for $110 per pound or a total of $660.

• Lot 24: Hiland Dairy Combined Class — World Dairy Expo, Madison, Wisconsin, purchased the combined 7 pounds of Drinkable Yogurt Smoothie-Mango made by Hiland Dairy, Chandler, Oklahoma, and Rockin Ranch with Dill Dip made by Hiland Dairy, Omaha, Nebraska, for $40 per pound or a total of $280.

• Lot 25: Combined Class — Grassland Dairy Products purchased the combined 20 pounds of Soft White Cheese made by Hato Potrero Farm Inc., Clewiston, Florida, and Président Pepper Medley Made by Lactalis USA Inc., Merrill, Wisconsin, for $60 per pound or a total of $1,200.

• Lot 26: Combined Class — AgSource Cooperative Services purchased the combined 7 pounds of Salty Caramel Gelato made by Stewart’s, Saratoga Springs, New York, and Moxie Munch made by Power Foods LLC, Barneveld, Wisconsin, for $40 per pound or a total of $280.

• Lot 27: Ice Cream Grand Champion — Kelman Consulting, Marshall, Wisconsin, purchased 5.5 pounds of Brown Butter Peanut Brittle Ice Cream made by The Comfy Cow, Louisville, Kentucky, for $70 per pound or a total of $385.

• Lot 28: Grade A Grand Champion — AgSource Cooperative Services purchased 2 pounds of French Onion Dip made by Dean Foods Co., Rockford, Illinois, for $230 per pound or a total of $460.

• Lot 29: Cheese & Butter Grand Champion — Ivarson Inc. purchased the 20-pound Sartori Limited Edition Pastorale Blend wheel for $85 per pound or a total of $1,700.


Rumiano Cheese Co. pursues growth with organic and brand name products

By Kate Sander

BELMONT, Wis. — It wasn’t that long ago when many consumers didn’t know what to do with goat’s milk cheese — or what they really thought of it. Only true cheese connoisseurs sought the product out and, even then, some of what was in the marketplace wasn’t all that good.

However, times have changed and today goat’s milk cheese has become mainstream. Some of that growth has been driven by MontChevré-Betin Inc., which makes a large variety of goat’s milk cheeses at its plant in Belmont, Wisconsin.

MontChevré’s award-winning cheese — most recently the company’s Blueberry Vanilla Goat Cheese was named the overall champion at the Wisconsin State Fair — is made with a focus on quality and accessibility to consumers across the nation, says company president Arnaud Solandt.

The company first began making cheese in the United States in the late 1980s, when a trade embargo kept European goat’s milk cheeses from making their way to the U.S. market. Solandt, a native of France who was working for a French company at the time, went to his boss and suggested making cheese in the United States to fill the void.

Solandt and colleague Jean Rossard, a fourth generation cheesemaker, purchased a small Wisconsin Cheddar factory in Preston, Wisconsin. With a contract for just 3,000 pounds of milk per week, Mt. Sterling Cooperative Creamery in Mt. Sterling, Wisconsin, was their initial source of milk.

“It was hard at first,” admits Rossard, who moved to the United States in 1989 with his wife, two days after his wedding. “I came from France to make goat’s milk cheese in a cow’s milk state — people thought we were crazy.”

Three years into their U.S. venture, Solandt and Rossard, who serves as vice president and plant manager, separated from their original parent company in France and continued to pursue their U.S. cheese dreams. They purchased a larger plant, originally a Swiss cheese plant, in Belmont, Wisconsin, in 1995.

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Butter catapults above $3 per pound,
hits new high at CME

September 25, 2015

By Alyssa Mitchell

MADISON, Wis. — Spot butter at the Chicago Mercantile Exchange (CME) today reached a new all-time high of $3.1350 per pound. Price increases yesterday and today followed a jump on Wednesday of 19.25 cents, which sent butter soaring above $3 for the first time in 2015.

Last year, the CME spot butter price peaked in late September at $3.06. While the commodity has been holding strong above $2 per pound for the past month, stakeholders say they did not anticipate $3 butter in 2015 nor an increase of this magnitude.

“We did not anticipate it would climb this high — it’s reaching last-year levels, which is unprecedented,” says Andrei Mikhalevsky, president and chief executive of California Dairies Inc., Visalia, California.

He notes upward movement in butter already was in place prior to the release of USDA’s Cold Storage report earlier this week, but the report typically has an impact on pricing and very well may have contributed to the surge.

Bob Wellington, senior vice president and economist for Agri-Mark Inc., Methuen, Massaschusetts, notes the Cold Storage report showed August 2015 butter inventories at 21 percent above August 2014, “so it’s not as if further declines occurred.”

“However, current inventories are still relatively tight, and sales of Cabot butter and other premium brands remain strong,” he adds. “The latest butter production report shows a decline of 3.2 percent, with California milk production down a similar percentage, and that likely had a large impact, building over the past few weeks.”

Tayt Wuethrich, chairman of the board at Grassland Dairy Products Inc., Greenwood, Wisconsin, notes that sweet cream is tight and “it’s fourth quarter — everyone wants butter.”

He adds that the surge in demand for butter has been growing over the past year as consumers and restaurants alike are going more to full-fat butter and away from margarine.

“It hasn’t significantly impacted demand here yet, but it will,” he says.

USDA’s Dairy Market News notes that central region butter churning activity is steady to lower as butterfat components in milk intakes trend lower. Spot cream load availability for butter production is tight as active aerated cream, sour cream, cream cheese and moderate ice cream/frozen dessert manufacturing draw heavily on regional cream supplies, Dairy Market News adds.

“Manufacturers in the region are looking for bulk butter to fill needs through the balance of the year; however, buyers report there is a scarcity of bulk butter loads available. Producers are microfixing in addition to running bulk and print butter lines to keep pace with order fulfillment,” Dairy Market News says.

While it is not expected that butter will maintain this $3-per-pound price level for long — Mikhalevsky and Wellington note that prices at this level begin to affect retail promotions as higher prices hit retailers — butter prices are expected to remain well above $2 for the fall season.

Wellington notes that in addition to an increase in demand for butterfat, whole milk sales also have increased as well as sales of higher fat regular and Greek yogurts.

“Their increases have not rivaled those of butter, but any improvement is a good thing for farmers,” he says.

Mikhalevsky notes that between weeks 40-45 in a typical year, as holiday demand begins to taper off, typically butter prices ease to levels near $1.50-$1.75.

He adds, however, that this year has not been like other years thus far.

“Most people seem to anticipate it won’t come down as far as it has in recent years,” he says.
Meanwhile, analysts are not anticipating a “sympathy rally” from CME cheese in spite of butter’s price strength.

“It’s unlikely cheese will rally due to stronger cheese production and growing inventories,” Wellington says. “Upper Midwest milk production is very strong with most of that product going into cheese. You can never rule out short-term price gyrations, but cheese prices are expected to settle at or below $1.60 per pound.”

CME barrel cheese this month has moved from the upper-$1.60s down into the $1.50s. Cheddar barrels this week fell to $1.46 per pound on Wednesday but gained 9 cents Thursday to settle at $1.55, where it remained today.

Cheddar blocks managed to stay above $1.60 per pound this month until this Tuesday, when they fell 4.75 cents to $1.595 and closed the week at $1.59.


Hearing begins on proposals to
consider California FMMO

September 25, 2015

CLOVIS, Calif. — USDA’s hearing to consider proposals to establish a federal milk marketing order (FMMO) for California began Tuesday in Clovis, California. Stakeholders say much of the first couple days were spent on procedural details, including a review of how USDA conducts a federal order hearing.

According to the International Dairy Foods Association (IDFA), on Tuesday morning there were more than 100 people in the hearing room to watch the proceedings, but after lunch the crowd dwindled to about half that size.

Jill Clifton, a USDA administrative law judge, is presiding over the hearing, which is open to the public. USDA will hear testimony and receive evidence regarding four proposals for a FMMO in California.

The hearing was called in response to an initial proposal submitted by three California dairy cooperatives — California Dairies Inc. (CDI), Dairy Farmers of America (DFA) and Land O’Lakes. (For more details on the cooperatives’ proposal, see “U.S. dairy industry reacts to idea of California federal order” in the Feb. 13, 2015, issue of Cheese Market News.)

Additional proposals then were submitted by the Dairy Institute of California, California Producer Handler Association (CPHA) and Ponderosa Dairy. (For more details on the additional proposals, see “California dairy groups, milk supplier file FMMO proposals” in the April 17, 2015, issue of Cheese Market News.)

USDA notes that the 2014 Farm Bill allows for a California FMMO that recognizes certain state-specific aspects of the current state order, if recommended by USDA and approved by California dairy producers.

The hearing’s first witness, Amanda Steeneck, an agricultural economist with USDA’s Agricultural Marketing Service, Dairy Programs, took the stand on Tuesday. Steeneck explained how she prepared USDA’s “Preliminary Regulatory Impact Analysis of Proposals to Establish a California Federal Milk Marketing Order.” (To view the analysis, visit The rest of Tuesday consisted of various individuals cross-examining Steeneck, IDFA says.

Rachel Kaldor, executive director, Dairy Institute of California, notes that the original hearing schedule from USDA had topics broken into different groups for each topic to be discussed separately. Stakeholders were concerned that testimony that spanned more than one topic would then have to be broken up into different sections, and certain individuals would be testifying more than once.

Several of the proponents of proposals then asked Judge Clifton to reconsider USDA’s plan for when certain topics would be discussed. As a result, Judge Clifton agreed that witnesses would not be required to follow that plan. Now, testimony may be presented in its entirety, spanning several topics, Kaldor says.

The original schedule still will be referenced for those who wish to speak on one specific topic, she adds.

Kaldor notes that while the process is lengthy, she feels the judge is doing two things of primary importance: making sure producers have the change to testify, and attempting to make sure that as complicated as these topics are, they are clear to stakeholders by asking clarifying questions for the live audio feed.

Kaldor anticipates Dairy Institute won’t give its full testimony until next week, though the schedule could change.

“We’re highly respectful of the significance of this effort, and I’m glad to be here,” she says. “We also feel that USDA and the judge are making a large and successful effort in helping dairy farmers feel this is an important forum for them and their thoughts will be respected.”

Andrei Mikhalevsky, president and chief executive of CDI, says while it’s very early in the hearing process, CDI is encouraged that the process is moving forward.

He adds he is pleased with the changes to the scheduling format as well.

“It’s now a more succinct process,” he says.

Later this week, the judge was expected to hear opening statements from proposal proponents. In the coming days, Judge Clifton also is expected to hear legal arguments regarding USDA’s denial of a request by the Dairy Institute of California to consider a different means of valuing whey during this hearing. The hearing then is expected to move into the main presentation of the three co-ops’ proposal followed by the alternative proposals.

Robert Vandenheuval, general manager of the California Milk Producers Council (MPC), which supports the original proposal submitted by California’s three major dairy cooperatives, says this clearly is an inclusive process that will take quite some time to get through.

“But at the end, USDA will have an extensive record of tested testimony and evidence to use in crafting their recommended order language sometime in 2016,” he says.

The hearing is expected to last several weeks, and USDA is streaming an audio feed of the hearing each day, available at The webcast is audio only.

Following the conclusion of the hearing, USDA will issue a recommended decision and request public input. USDA then will issue a final decision. If an FMMO is recommended, dairy farmers potentially covered by the order would vote on whether to adopt it, USDA says. A “yes” vote by more than two-thirds of the dairy farmers, or dairy farmers representing two-thirds of the milk produced, is needed to approve the order.


Butter in cold storage down
18 percent from prior month

September 25, 2015

WASHINGTON — Butter in cold storage at the end of August 2015 totaled 209.3 million pounds, according to data released this week by USDA’s National Agricultural Statistics Service (NASS), up 21 percent from August 2014’s 172.8 million pounds but 18 percent below the 254.3 million pounds in cold storage at the end of July 2015.

Meanwhile, natural American cheese in cold storage totaled 708.9 million pounds as of Aug. 31, 2015, up 9 percent from August 2014’s 648.8 million pounds and up 2 percent from the 698.1 million pounds in cold storage as of July 31, 2015.

Swiss cheese in cold storage totaled 22.2 million pounds at the end of August 2015, down 18 percent from the 27.1 million pounds in cold storage at the end of August 2014 and up 3 percent from the 21.6 million pounds in cold storage at the end of July 2015.

Other natural cheese in cold storage totaled 436.5 million pounds at the end of August, up 19 percent from the 365.5 million pounds in cold storage one year earlier but down 1 percent from July 2015’s 442.5 million pounds.

Total natural cheese in cold storage amounted to 1.17 billion pounds at the end of August 2015, up 12 percent from August 2014’s 1.04 billion pounds and up less than 1 percent from the 1.16 billion pounds in cold storage at the end of July 2015, NASS reports.


IDF releases 2015 outlook report
at World Dairy Summit

September 25, 2015

BRUSSELS, Belgium — The International Dairy Federation (IDF) released its World Dairy Situation 2015 report during the IDF World Dairy Summit in Vilnius, Lithuania, this week.

The report offers an outlook of the latest global dairy data, including production, processing, industry, consumption, trade and price perspectives. It offers an in-depth assessment of current trends and expected evolutions.

In addition to official data from various sources, country reports are based on questionnaires filled out by IDF national committees as well as other national contributors.

“The year 2014 was characterized by the start of a market turnaround. Total milk production was estimated at around 802 million (metric tons), a significant increase of 3.3 percent compared to 2013,” says Véronique Pilet, editor of the World Dairy Situation report.

“World dairy trade developed accordingly, showing solid increase on the whole and representing nearly 9 percent of global milk production,” Pilet adds. “Mergers and acquisitions are still intensifying and becoming increasingly global. International projections expect a population of 9 billion inhabitants in 2050, and thus an increased need for food in the coming decades.”

The IDF report notes that along with the increased need for food, animal protein in general and dairy products in particular will comprise a bigger place in people’s diets in the future. According to the latest projections of the Organisation for Economic Cooperation and Food and Agriculture Organization of the United Nation’s (OECD-FAO) Agricultural Outlook, total dairy consumption in milk equivalents should increase by 25 percent by 2024, corresponding to an average growth rate of 2.2 percent every year in the next decade, IDF says. Dairy consumption is expected to grow even more in developing countries, with an expected growth rate of 3 percent each year on average or an increase by more than a third (34 percent) in one decade.

Despite a long-term growth trend, the report notes that world cheese trade faced an exceptional decline in 2014, falling 4 percent to 2.2 million metric tons by the end of the year. The shutdown of exports from many major cheese suppliers to the Russian market played an important role in this, IDF says. Trade to the European Union also suffered a setback of 10 percent, mainly due to the disruption of the EU internal market after the Russian ban took effect in August 2014.

Meanwhile, IDF reports that several other major cheese destinations in the world reflected solid growth. The most rapidly growing export markets in top destinations were South Korea (up 26 percent) and China (up 22 percent).

The report says dairy exports from major contributors in world trade were rather sluggish during the first six months of 2015, reflecting a cool down in global demand, combined with an abundant supply in most key exporting regions which led to expanded stocks and increased price pressure. As markets are not expected to recover substantially before 2016, the report predicts overall trade evolution in 2015 may stay slightly negative or stagnant.

In 2016, global demand is expected to pick up again and supply should reach a new balance, meaning trade will probably return to its long-term average growth path, provided there are no further abnormalities in the international market, the report says. Overall trade volume may increase 4 percent to reach a level between 68 and 69 million metric tons of milk equivalent, IDF says.

For more information or to purchase the full report, visit


Industry looks at strategies to
educate consumers on dairy

September 18, 2015

By Alyssa Mitchell

CHICAGO — GMOs, animal care, antibiotics, organic versus conventional — these issues continue to be top of mind with today’s consumers, and with the rapid spread of information — true or false — online, dairy stakeholders are increasingly faced with tough questions and misconceptions about the products they make.

While the industry has been working in various ways to address this issue in recent years, one organization is educating stakeholders on a new method to find common ground and work toward a mutual understanding among industry and consumers.

The Dairy Council of California (DCC), Sacramento, an organization that works to educate communities on nutrition and the dairy industry’s contribution to community health, has put together a 3-step process for making a convincing and influential argument that is gaining traction in California and beyond.

DCC CEO Tammy Anderson-Wise and registered dietitian Ashley Rosales were in Chicago this week at the 2015 International Dairy Show to share this strategy. In a session Wednesday titled

“Being an Effective Dairy Advocate: Ramping Up Your Skills in Persuasion, Influence and Engagement” Anderson-Wise and Rosales shared with attendees the HERD model, a 3-step process to find common ground and make a compelling argument to combat misconceptions on dairy.

In an interview with Cheese Market News prior to the session, Anderson-Wise said that stakeholders are trained at different levels and learn how to discern whether a question should be answered and addressed directly or redirected to someone with another level of expertise on the subject, depending on the content.

She notes the training began with the DCC staff and was so well-received that the DCC board — made up of 12 producers and 12 processors representing California dairy — also was trained, and then wanted training for their individual companies.

“Over the course of the last two years, the program has continued to expand in California as well as in Oregon and Washington state,” Anderson-Wise says. She notes that training also has been implemented in the dietetic community but is a bit more generalized to deal with a variety of constituents, health care professionals and others.

In fact, that’s the beauty of the method, she adds. The HERD model can be tailored as a way to make an effective, compelling argument in virtually any scenario.

Anderson-Wise notes that DCC also works with Dairy Management Inc. (DMI) and the Milk Processor Education Program (MilkPEP), as DCC isn’t the only organization working to dispel misconceptions about dairy products.

DMI in August launched “The Udder Truth,” a three-part video series that put farmers in front of the camera and asked them to address some of the dairy industry’s most common myths. Using excerpts from people’s real comments on social media, the industry confronted concerns right where they start.

Earlier this year, MilkPEP launched a Get Real campaign to educate consumers about the power of milk and what kind of difference it makes compared to milk alternatives. The Get Real campaign called on members of the dairy industry to help spread good news about milk to the public through social media using the hashtag #milktruth.

Anderson-Wise says sharing the HERD method with attendees of the International Dairy Show allows DCC to aid dairy industry stakeholders in gaining more knowledge about communication strategies and skills that positively and effectively answer challenging questions about the healthfulness of milk and dairy foods or about dairy production/processing practices.

“It’s our goal for participants to enhance their confidence level and their ultimate impact as representatives of the industry,” she says.

During Wednesday’s session, Anderson-Wise and Rosales first shared with attendees some steps to disagree without seeming disagreeable:

• Establish rapport — DCC says that using “we” statements as opposed to “you” statements helps to emphasize shared goals and common interests, such as “We have the same goal, getting kids to eat healthier meals” or “We are like-minded when it comes to improving school lunches.” It’s also important to emphasize similarities and identification; “I feel the same way” or “I’m a mom (or dad) myself” help to establish a mutual connection.

“In today’s landscape, shared values are 3 to 5 times more important in building trust than demonstrating competence,” Rosales says.

• Transitioning into argument — Stakeholders can use “bridging” statements such as “You make a good point” or “You raise an important issue.” Complimenting the other person increases liking and establishes a cooperative communication climate, Anderson-Wise and Rosales say. Bridging statements also can be used to transition to a new topic, expand an issue or refine the discussion, for example, “If we look at the bigger picture …” or “We have to keep in mind that ….”
Begin by partially agreeing, they add, as negating everything the other person says increases defensiveness.

It’s important to use polite, diplomatic language as well, DCC says.

“You want to be assertive but polite,” Rosales says. “It is harder for the other person to take offense if you are courteous and respectful.”

It also helps to phrase an initial disagreement as a question, DCC says.

“This shows the other person you are listening and cues him or her that you may disagree,” Anderson-Wise says.

Paraphrasing to summarize the other person’s position to show understanding and fair-mindedness also helps, DCC says.

• Making arguments — Now stakeholders are ready to make their argument. It’s important to focus on the argument and not the person, Rosales says.

“Keep a cool head. If opponents in a public forum become hostile, don’t take the bait,” she says.
These strategies are condensed within the HERD method, based on 3 steps — Headline, Evidence and/or Reasoning, and Damage Report.

Headline — In this first step, stakeholders make their claim, point or proposition, or in other words, what they want to convince people to think, believe or do.

Evidence and/or Reasoning — Evidence is any external proof or support. Analysis consists of a stakeholder’s own reason or rationale (in other words, it answers the questions, “Where’s your proof?” or “How do you know?”), DCC says.

Damage Report — This last step explains the impact of the specific argument on overall debate, Rosales says.

For example, an opponent may make an argument on alternative beverages, saying dairy milk isn’t needed, is unhealthy and unsustainable and that a soy, rice or almond beverage is better, Rosales notes.

An example headline could be “Accept no substitute.” Make the argument that these other choices are not “milk;” they are beverages, Rosales says.

“There is a reason that these alternative beverages aren’t milk — they are highly processed beans, nuts and grains,” she says. “Alternative beverages do not pack the same nutritional wallop as natural cow’s milk.”

In the evidence phase, compare the products yourself, Rosales says. Line up the nutritional panels side by side and see that milk has a variety of nutrients not found in milk substitutes. In addition, the Dietary Guidelines for Americans recommends a certain level of milk intake each day as part of a nutrient-rich, balanced diet.

In reasoning, the argument can be made that milk has a strong track record of supporting bone health, Rosales adds.

Lastly, with damage/impact, the fact is that alternative beverages simply don’t offer the same nutrients as real cow’s milk, Rosales says.

“Science is still uncovering how the multiple nutrients in whole foods like milk work together to impact and improve overall health,” she says.

At the show, session attendees were asked to come up with their own HERD models using various topics like organic versus conventional milk, sustainability, antibiotics and animal care.

Session attendee Ken Olson, outreach coordinator for the American Dairy Science Association, noted that it’s important to be careful to not spread negativity about alternative milk products if, for example, someone has a child with allergies who cannot drink conventional milk.

Rosales responded that is where the shared value comes into play.

“It’s important to listen to each other and adjust your argument accordingly,” she says.

Following the presentation, Olson told Cheese Market News he found the session interesting and thinks it’s important for the industry to address consumers’ questions but also be cognizant of other issues that come into play rather than just jumping into the facts.

“You don’t want to offend a family dealing with an allergy, for example,” he says, “but I think it’s useful to have some ideas to approach the subject, and they did a good job with the presentation.”


FDA finalizes FSMA rule for
preventative controls in food

September 18, 2015

WASHINGTON — FDA has finalized its Food Safety Modernization Act (FSMA) Preventative Controls for Human Food rule, and compliance dates for some businesses will begin as soon as September 2016.

The rule was first proposed in January 2013 following extensive public outreach by FDA, and FDA issued a supplemental notice of proposed rulemaking in September 2014.
FDA notes that the final rule, published in yesterday’s Federal Register, has elements of both original and supplemental proposals, in addition to new requirements that are the outgrowth of public input received during the comment period for both proposals. For example, flexibility has been built into key requirements, including control of the supply chain. Additionally, the definition of farms — which are exempt from these regulations — has significantly changed to reflect modern farming practices.

The key requirements include the following:

• Covered facilities must establish and implement a food safety system that includes an analysis of hazards and risk-based preventive controls. This rule sets requirements for a written food safety plan that includes: hazard analysis, preventive controls, oversight and management of preventive controls, corrective actions and corrections, and verification.

• The definition of a “farm” is clarified to cover two types of farm operations — a primary production farm devoted to growing and harvesting crops and/or raising animals, and a secondary activities farm not located on the primary production farm, devoted to harvesting, packing and/or holding raw agricultural commodities.

• The supply-chain program is more flexible, with separate compliance dates established. The rule mandates that a manufacturing/processing facility have a risk-based supply chain program for those raw material and other ingredients for which it has identified a hazard requiring a supply-chain applied control. Manufacturing/processing facilities that control a hazard using preventive controls, or who follow requirements applicable when relying on a customer to control hazards, do not need to have a supply-chain program for that hazard.

• Current good manufacturing practices (CGMPs) are updated and clarified. Some of the previously nonbinding provisions, such as education and training, now are binding. Management is required to ensure that all employees who manufacture, process, pack or hold food are qualified to perform their assigned duties. Such employees must have the necessary combination of education, training and/or experience necessary to manufacture, process, pack or hold clean and safe food. Individuals must receive training in the principles of food hygiene and food safety, including the importance of employee health and hygiene.

Compliance dates for businesses are staggered over several years. Very small businesses (averaging less than $1 million per year) and businesses subject to the Pasteurized Milk Ordinance have three years after the final rule’s publication, except for records to support their status as a very small business, which are due Jan. 1, 2016. Small businesses (with fewer than 500 full-time equivalent employees) have two years, and all other businesses have one year.

FDA says it is developing several guidance documents on various subjects of the rule and partnering with USDA’s National Institute of Food and Agriculture to administer a grant program to provide technical assistance to small food processors.

For more information, contact Jenny Scott, Center for Food Safety and Applied Nutrition, FDA, 240-402-2155.


Norseland, Couturier form partnership for marketing

September 18, 2015

DARIEN, Conn. — Norseland Inc. and goat cheese producer Couturier North America LLC have announced the formation of a strategic alliance for the sales, marketing and distribution of all Couturier brands including Couturier, Merci Chef and Capra.

Effective November, all sales, marketing, distribution and logistical responsibilities will transfer to Norseland for all market segments. Additionally, Norseland’s sales force and combined broker network will begin presenting promotional programs to all segments of the trade.

Couturier will join Norseland’s group of specialty cheese and other brands, including Jarlsberg and Jarlsberg Lite, Snøfrisk, Ski Queen, Ilchester, Volpi American crafted cured meats, García Baquero traditional Spanish cheeses, Lotito Gabriella fine Italian cheeses, Caves of Faribault’s Amablu, Amagorg, St. Pete’s and St. Mary’s, and Old Amsterdam Aged Gouda. Couturier North America is the U.S. subsidiary of France’s Groupe Eurial, and Norseland Inc. is a wholly owned subsidiary of Norway’s TINE SA.

“This partnership is a great opportunity for Couturier North America to continue to grow our market share in the U.S. market to become one of the leading brands of goat cheese in the next five years,” says Pierre Guerin, president, Couturier. “Norseland is the most qualified company when it comes to specialty cheeses. They have a very strong knowledge and master all aspects from marketing to logistics. We are very excited with this new challenge and we expect a lot from this alliance.”

John Sullivan, president and CEO of Norseland, says, “We are so pleased to have Couturier North America LLC in this exciting alliance with Norseland. We look forward to adding their incredible brands to our portfolio.”


New trade show ProFood Tech to launch in 2017

September 18, 2015

CHICAGO — Three trade show leaders joined forces this week to announce the launch of ProFood Tech, a new event that will focus on processing technologies serving the food and beverage industries. ProFood Tech will make its debut April 4-6, 2017, at McCormick Place in Chicago.
The event is being launched by three of the world’s trade show leaders — the International Dairy Foods Association (IDFA); PMMI, The Association for Packaging and Processing Technologies; and Koelnmesse.

IDFA is North America’s largest dairy association, representing more than 85 percent of all North American dairy product manufacturing. PMMI is the owner and producer of the Pack Expo portfolio of trade shows and represents North American manufacturers of equipment, components and materials for processing and packaging. Koelnmesse organizes world-leading trade shows for the food and beverage industries as well as for the food and beverage processing industries, such as Anuga and Anuga Food Tec in Cologne, Germany.

“In assessing the current trade show landscape, we saw there was a need for a dedicated event that brings buyers together with leading worldwide manufacturers in the food and beverage industry,” says Charles D. Yuska, president and CEO, PMMI. “ProFood Tech provides a venue to share the latest innovations and crossover technologies from multiple vertical markets within the food and beverage industry and will be that one-stop-shop featuring exhibits from both large companies that serve several customer segments and smaller niche companies with focus on more specific needs.”

Exponential changes in technology are making it hard for food and beverage companies to keep up, the organizations say. ProFood Tech will provide a wide perspective on the food and beverage processing industry as a whole and feature cutting-edge solutions to the challenges the industry is facing every day on the plant floor.

ProFood Tech will provide both large and small suppliers the opportunity to build their businesses by breaking into new food and beverage markets, cementing their status as industry leaders and reaching a large group of customers at one event.

“The opportunities for new ideas and breakthrough solutions are amazing when executives from related businesses come together to discuss, review and experience the innovations, products and services available today,” says Connie Tipton, president and CEO, IDFA. “IDFA is proud to partner with these trade show leaders and to continue our tradition of bringing industry suppliers, processors and manufacturers together so they can find profitable business solutions, discover new technologies and see the innovations that are abundant in our industry.”

Gerald Böse, president and CEO, Koelnmesse, notes that over a period of decades, Koelnmesse has established an excellent reputation worldwide as a trade show organizer, especially in the field of food products and food technology.

“ProFood Tech marks a further logical step in Koelnmesse’s strategy aimed at offering expert support to our customers in various target markets in our role as a global service provider,” he says.

With an expansive show floor and enhanced educational programming led by IDFA, ProFood Tech will attract high-level buyers from every food and beverage sector, the organizations say.

Industry leaders including Delkor Systems Inc. and Tetra Pak say they are excited about the opportunities that ProFood Tech will offer.

“As a longtime member of both IDFA and PMMI, Delkor is very pleased to see the attention and focus that ProFood Tech will bring to the North American food and beverage industry,” says Dale Andersen, president and CEO, Delkor Systems Inc. “Koelnmesse’s outstanding reputation as a trade show organizer only strengthens this collaboration.”

Andersen adds that what North America was missing was an Anuga-style show with the following that Anuga has.

“I’m quite confident this will be an Anuga-style show in North America. We need it,” he says.
Carla Fantoni, vice president of communications for Tetra Pak U.S. and Canada, says the joint efforts of Pack Expo, Anuga and IDFA clearly demonstrate a commitment from the three organizations to establish a trusted brand serving all food and beverage categories.

“As a world leader in processing and packaging technologies, Tetra Pak is excited about the potential ProFood Tech holds,” Fantoni says. “We think this consolidated approach will help suppliers and customers alike make the most of the show.”

Jim Pittas, senior vice president, PMMI, says he hopes the show will evolve to all packaging, not just food and beverage.

“We wanted to bring together all of these fragmented shows and make one major event, and we decided the Midwest is where it needed to be,” he says.

To view floor plans and submit an application for exhibit space, visit PMMI and IDFA member discounts will apply, and exhibitors at the inaugural ProFood Tech will get priority space selection status for future events. Exhibit space applications are due by Nov. 3, 2015.


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Today's Cheese Spot Trading
October 2, 2015

Barrels: $1.6175 (+3 3/4)
Blocks: $1.7475 (+3 1/2)

Click here for more market activity
Cheese Production
U.S. Total August
974.442 mil. lbs.

Milk Production
U.S. Total August
17.366 bil. lbs.

Guest Columnist

Dancing with the devil in the details

John Umhoefer, Wisconsin Cheese Makers Association

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