USDA issues order on HPAI testing; FDA says milk is safe

April 26, 2024

WASHINGTON — USDA’s Animal and Plant Health Inspection Service (APHIS) this week issued a federal order, effective Monday, requiring mandatory testing for interstate movement of dairy cattle and mandatory reporting of positive tests.

This order was issued to prevent the spread of highly pathogenic avian influenza (HPAI), which has been detected in dairy cattle across several states over the last several weeks. USDA, FDA, the Centers for Disease Control and Prevention (CDC), state veterinary and public health officials, and the National Animal Health Laboratory Network (NAHLN) laboratories have been investigating the emergence of the HPAI, H5N1 virus in dairy cows since late March.

APHIS will provide reimbursement for testing at NAHLN labs, including (1) dairy cattle suspected of disease due to clinical signs, (2) pre-movement testing, (3) producers interested in the disease status of their asymptomatic animals, and (4) samples taken from other animals on dairies associated with this disease event.

Mandatory testing for interstate movement of dairy cattle includes:

• Prior to interstate movement, dairy cattle are required to receive a negative test for Influenza A virus at an approved NAHLN laboratory.

• Owners of herds in which dairy cattle test positive for interstate movement will be required to provide epidemiological information, including animal movement tracing.

• Dairy cattle moving interstate must adhere to conditions specified by APHIS.

• As will be described in forthcoming guidance, these steps will be immediately required for lactating dairy cattle, while these requirements for other classes of dairy cattle will be based on scientific factors concerning the virus and its evolving risk profile.

Mandatory reporting of positive tests includes:

• Laboratories and state veterinarians must report positive Influenza A nucleic acid detection diagnostic results (e.g. PCR or genetic sequencing) in livestock to USDA’s APHIS.

• Laboratories and state veterinarians must report positive Influenza A serology diagnostic results in livestock to USDA’s APHIS.

Additionally, in an effort to maximize understanding and research on H5N1 in dairy cattle, APHIS notes that on April 21 it publicly made available 239 genetic sequences from the virus recently found in samples associated with the ongoing HPAI outbreak. APHIS also has offered virus samples to interested researchers to facilitate epidemiological study.

“Increasing our understanding of this disease and how it spreads is critical to stopping it. This is why APHIS is urging dairy cattle producers and those who work in or with the industry to share epidemiological information from affected farms, even if they are not planning to move cattle interstate,” APHIS said in its Wednesday announcement, adding that it urges producer participation in public health assessments to continue to confirm worker safety and monitor for any potential changes in the virus that could impact transmissibility.

Yesterday, FDA announced initial results from a national commercial milk sampling study that showed about one in five of the retail samples tested are quantitative polymerase chain reaction (qPCR)-positive for HPAI viral fragments, with a greater proportion of positive results coming from milk in areas with infected herds. FDA notes that qPCR-positive results do not necessarily represent the presence of an actual virus that may be a risk to consumers. Additional testing is required to determine whether an intact pathogen still is present and if it remains infectious.

“To date, the retail milk studies have shown no results that would change our assessment that the commercial milk supply is safe,” FDA says.

Earlier this week, FDA reiterated that based on the information currently available, the commercial milk supply is safe because of the pasteurization process and the diversion or destruction of milk from sick cows.

FDA adds that there are a number of collective activities being undertaken to ensure the continued effectiveness of the federal-state milk safety system. In addition to specific research activities, FDA is closely collaborating with CDC’s food safety group as well as its surveillance team.

FDA notes that during the course of the outbreak, it has been evaluating milk from affected animals, in the processing system and on the shelves, and is completing a large representative national sample to better understand the extend of its findings.

FDA continues to recommend that the industry does not manufacture or sell raw milk or raw milk products, including raw milk cheese, made with milk from cows showing symptoms of illness, including those infected with avian influenza viruses or exposed to those infected with avian influenza viruses. FDA also recommends producers take precautions when discarding milk from affected cows so that the discarded milk does not become a source of further spread. These precautions should include heat treatment, pasteurization or its equivalent of discarded milk prior to dumping in lagoons or application of waste solids and ensuring biosecurity around lagoons so that animals and birds do not have access. Any raw milk or raw milk products from exposed cattle that are fed to calves or other animals should be heat treated or pasteurized.

National Milk Producers Federation (NMPF) President and CEO Gregg Doud issued a statement noting that since the virus was first discovered in cows, H5N1 in dairy cattle primarily has been an animal health concern, and this week’s announcements and actions from USDA and FDA underscore that continued concern and focus on the well-being of animals and those who care for them.

“USDA, FDA and scientific research has established what accumulated science indicated all along: The consumer milk supply is safe. Pasteurization renders the H5N1 virus, like other viruses, inactive, an important reminder to consumers of its value as a basic safeguard for human health. We appreciate that these agencies are sharing this message, which will help alleviate any concerns consumers may have,” Doud says.

“That said, the presence of this virus in dairy herds, as well as dairy farmers’ own commitment to animal and human health, makes USDA’s actions on testing and interstate travel appropriate,” he adds. “Dairy farmers stand ready to take a proactive approach to ensuring that we better understand the spread of the virus, do what we can to limit that spread and ensure the health of our animals and workers.”

A joint statement from NMPF and the International Dairy Foods Association (IDFA) also notes that data cited by FDA is consistent with many other studies demonstrating that legally required temperature and time for milk pasteurization will readily inactivate HPAI.

“Viral fragments detected after pasteurization are nothing more than evidence that the virus is dead; they have zero impact on human health,” the joint statement says. “Further, the federal PMO (Pasteurized Milk Ordinance) prohibits milk from sick cows from entering the food supply chain. Milk and milk products produced and processed in the United States are among the safest in the world.”

The groups add that FDA also has remained consistent in its vigilance against consuming raw milk, which is a key vehicle in the transmission of pathogens that can be harmful to humans.

“As this situation continues to evolve, our dairy organizations strongly discourage the consumption of raw milk and recommend that all raw milk and raw milk components be heat treated to a temperature and duration that kills harmful pathogenic bacteria and other microorganisms, including HPAI, regardless of the product’s intended use for human or animal consumption. FDA also recommends out of an abundance of caution that milk from cows in an affected herd not be used to produce raw milk cheeses,” NMPF and IDFA say.

CMN

Dairy stakeholders laud most aspects of school meal rules

April 26, 2024

WASHINGTON — Several dairy stakeholders this week praised final school meal regulations announced by USDA, noting that they preserve school milk options.

U.S. Agriculture Secretary Tom Vilsack this week announced major steps to promote the health of America’s children through school meals. Nutrition standards for school meals will be gradually updated to include less sugar and greater flexibility with menu planning between fall 2025 and fall 2027. The department arrived at these changes after listening closely to public feedback and considering the latest science-based recommendations from the Dietary Guidelines for Americans (DGA), Vilsack says.

The new rule continues the work of the Biden-Harris administration to address both food and nutrition security.

The final rule is a significant step toward advancing the administration’s national strategy to end hunger and reduce diet-related disease by 2030 set forth at the historic White House Conference on Hunger, Nutrition and Health in September 2022.

“The new standards build on the great progress that school meals have made already and address remaining challenges, including reducing sugar in school breakfasts,” says USDA’s Food and Nutrition Service Administrator Cindy Long. “These updates also make it easier for schools to access locally sourced products, benefiting both schools and the local economy.”

For the first time, added sugars will be limited in school meals nationwide, with small changes happening by fall 2025 and full implementation by fall 2027. USDA heard concerns from parents and teachers about excessive amounts of added sugars in some foods, which factored into this new limit. Research shows that these added sugars most commonly are found in typical school breakfast items. Child care operators also will begin limiting added sugars in cereals and yogurts — rather than total sugars — by fall 2025.

Schools can continue to offer flavored and unflavored milk, which provide essential nutrients that children need, such as calcium, vitamin D and potassium. There will be a new limit on added sugars in flavored milk served at breakfast and lunch by fall 2025.

Michael Dykes, president and CEO of the International Dairy Foods Association (IDFA), notes the updated rule preserves the ability for schools across the country to serve nutritious flavored milk to students in all grades as long as the product meets IDFA’s Healthy School Milk Commitment guidelines, which ensure an 8-ounce half pint of nonfat or lowfat flavored milk contains no more than 10 grams of added sugar per serving. IDFA established the commitment in early 2023 with 37 school milk processors. Today, the average added sugar level is 7.5 grams per serving for flavored milk in schools, well below the USDA threshold.

“School meals are a nutrition lifeline for millions of children across the United States. The final meal pattern rules released by USDA will expand dairy options that appeal to children by providing a variety of healthy, nutritious and delicious dairy options that meet the needs of kids of all backgrounds. For example, approximately 70% of all milk consumed in school meals is flavored milk. By offering nutritious flavored milk options in grades K-12 consistent with IDFA’s Healthy School Milk Commitment, parents and school foodservice directors can have confidence that America’s students will get the same essential nutrients with fewer calories and less added sugars than ever before,” Dykes says. “Thanks to the leadership of America’s milk processors, flavored milk in schools today is fully consistent with the latest federal Dietary Guidelines. These options provide the same 13 essential nutrients as unflavored milk, reduce plate waste and encourage greater meal participation. IDFA also commends the bipartisan members of Congress who passed legislation earlier this year that required the department to maintain flavored milk in school meals at all grade levels as part of its final rule.”

Dykes adds IDFA was pleased that USDA’s rule re-emphasized lactose-free milk as an option in all reimbursable meals.

“Schools should offer lactose-free milk as a choice to all students, which would mark major progress for child health and nutrition equity in our school meals. Providing lactose-free milk, as well as other dairy products with low lactose content, will allow more school children, including those with lactose malabsorption or lactose intolerance, to choose a dairy option that meets their needs and provides all the same essential nutrients as traditional dairy,” Dykes says.

The National Milk Producers Federation (NMPF) also thanked USDA for solidifying the ability of schools to offer 1% and fat-free flavored milk in school meals for children of all ages in its final school nutrition standards rule.

“This final rule helps ensure kids will be able to choose a nutritious milk they tend to prefer,” says Gregg Doud, CEO and president of NMPF. “Many children prefer lowfat flavored milk over fat-free, and flavored milk offers the same nutrients as regular milk with a minor amount of added sugar.”

NMPF praised its member cooperatives for their tireless work to decrease the level of added sugar in flavored school milk, which now generally falls below the added sugar maximum established in this final rule.

“Not only does flavored milk offer the same nutrients as regular milk, its presence correlates with decreased waste in school cafeterias. I am proud of our industry’s successful commitment to providing a healthy product that kids want,” Doud says.

Meanwhile, under the final rule, schools will need to slightly reduce sodium content in their meals by fall 2027. In response to public comments, USDA only is requiring one sodium reduction and not the three incremental reductions that were proposed last year. USDA says this change still moves children in the right direction and gives schools and industry the lead time they need to prepare. The sodium limits in this final rule will be familiar to schools, as they were supported by leading school nutrition and industry stakeholders during previous rulemaking activities in 2017 and 2018.

“While IDFA had sought to exclude sodium used for food safety and functional purposes in cheese-making, IDFA appreciates USDA’s final rule maintaining current school meal sodium targets through school year 2026-27 before adopting a more attainable, and permanent, school meal sodium target,” Dykes says.

NMPF says it supports the final rule’s inclusion of sodium limits on school meals that will not be more restrictive than the Target 2 limits from the 2012 school meals rule, calling it a compromise.

However, Dykes says despite these positive developments for child nutrition, IDFA is disappointed the final rule sets an added sugar limit for yogurt that is out of step with the 2020-2025 Dietary Guidelines.

“The DGA is clear that added sugars may be used to increase the intake of nutrient-dense foods like yogurt. As an essential meat alternative for many children, consumption of yogurt has also been associated with higher diet quality in children, higher intake of multiple nutrients including calcium, potassium, magnesium and vitamin D, and lower incidence of cardiovascular risk factors in adolescents, particularly total and excess abdominal body fat,” Dykes says.

USDA also missed an opportunity to restore 2% and whole milk to school breakfast and lunch, he adds.

“A plethora of science demonstrates dairy fat is unique, unlike typical saturated fats, in delivering positive and neutral health outcomes to people across all demographics. IDFA will continue to work with policymakers and lawmakers to enact the Whole Milk for Healthy Kids Act ,” he says.

Doud notes that despite significant progress achieved in the final rule, the work to ensure adequate milk access in schools isn’t finished yet.

“NMPF supports the Whole Milk for Healthy Kids Act, which would restore whole and 2% varieties to school lunch menus,” he says.

Led by Reps. Glenn “GT” Thompson, R-Pa., and Kim Schrier, D-Wash., the Healthy Kids Act legislation overwhelmingly passed the House of Representatives in December and awaits Senate approval.

CMN

March milk production down 0.9% from one year earlier

April 26, 2024

WASHINGTON — Milk production in the 24 major milk-producing states in March totaled 18.79 billion pounds, down 0.9% from March 2023’s 18.96 billion pounds, according to data released this week by USDA’s National Agricultural Statistics Service (NASS). For the entire United States, March milk production was estimated at 19.60 billion pounds, down 1.0% from March 2023’s 19.81 billion pounds. (All figures are rounded. Please see CMN’s Milk Production chart.)

NASS reports February’s revised production for the 24 major states totaled 17.44 billion pounds, up 82 million pounds or 0.5% from last month’s preliminary production estimate.

March production per cow in the 24 major states averaged 2,115 pounds, down 3 pounds from March 2023, but up 153 pounds from February. For the entire United States, production per cow in March is estimated at 2,100 pounds, unchanged from March 2023 and up 152 pounds from February.

NASS reports the number of milk cows on farms in the 24 major states was 8.88 million head in March, down 71,000 head from March 2023 and down 7,000 head from February. In the entire United States, there were an estimated 9.34 million milk cows in March, down 98,000 cows from March 2023 and down 7,000 cows from February.

California led the nation’s milk production in March with 3.67 billion pounds of milk, up 0.7% from March 2023. Wisconsin followed with 2.76 billion pounds of milk produced in March, up 1.0% from March 2023.

CMN

CheeseExpo panelists discuss election, FMMOs, collaboration

April 19, 2024

By Alyssa Mitchell

MILWAUKEE — With a historical presidential election on the horizon, dairy industry stakeholders await an outcome that will impact key policy issues including a new farm bill, immigration reform and more.

The sequel to the 2020 election is officially set as Democratic President Joe Biden and former Republican President Donald Trump secured their parties’ nominations earlier this year. The last presidential rematch came in 1956, when Republican President Dwight D. Eisenhower again defeated Adlai Stevenson, the Democratic opponent he had four years prior.

Experts discussed national polling trends as well as what election-driven change could mean for the dairy industry in a session Wednesday during CheeseExpo, hosted by the Wisconsin Cheese Makers Association (WCMA) and the Center for Dairy Research (CDR).

Charles Franklin, director of the Marquette Law School Poll, led off the session discussing the accuracy of polling results, noting that the system is “not broken but also not infallible.”

He notes 2016 was a bit of an outlier year as the results skewed further from what poll results projected compared to other years.

“These are estimates, first of all,” he says. “They can vary from poll to poll and pollster to pollster.”

Most national pollsters, including the Marquette Law School Poll, have shifted to a new model, Franklin notes. Polls now are sampling from a registered voter list (which is a public document), and from that list they are able to get a telephone number and usually an email as well.

“So we send a text and email to participate in a poll and provide a link to do it online rather than a live interviewer,” he says. “If we don’t hear back, we may follow up with a call or text.”

While there still are people who prefer not to participate in polls, it seems adding the option to do it online has improved response rates, he adds.

“Now we’re doing about 75% or a little more of our interviews online,” Franklin says. “Participants can do it on a smartphone, tablet or laptop, and the others we still interview by phone with a live interviewer.

“Whether it’s better or not for accuracy — we won’t know until November once we get the (election) results,” he adds.
Franklin says the upcoming presidential race is a close one, and it’s too soon to know who is going to emerge victorious.

A new Marquette Law School Poll survey of Wisconsin released Wednesday finds Trump supported by 51% of registered voters and Biden by 49%. Among “likely” voters also, Trump is the choice of 51% and Biden of 49%.
The survey was conducted April 3-10, 2024, interviewing 814 Wisconsin registered voters, with a margin of error of plus or minus 4.8 percentage points. Of the full sample, 736 are considered likely voters, and the margin of error for that group is plus or minus 5 percentage points.

The Wisconsin poll also looks at the state’s U.S. Senate race, where Democratic Sen. Tammy Baldwin is supported by 52% and Republican challenger Eric Hovde by 47% among registered voters. Among likely voters, the race is a tie, with 50% for both Baldwin and Hovde. These results include initially undecided voters who then are asked which candidate they would pick if they had to decide.

The initial question, including undecided voters, produces slightly different results, with Baldwin at 44%, Hovde at 37% and undecided at 18% among registered voters. Among likely voters, Baldwin was favored by 45%, Hovde by 41%, and 15% were initially undecided. (To view the poll, visit www.marquette.edu/news-center/2024/law-poll-finds-very-close-presidential-us-senate-races-in-wisconsin.php.)

In January, Trump received 49% and Biden 49% among registered Wisconsin voters, and Trump received 50% and Biden 49% among likely voters. Those results included initially undecided voters who then were asked whom they would vote for if they had to choose between Biden and Trump.

So, what does this mean for the dairy industry? Session speakers Shawn Johnson, capital bureau chief for
Wisconsin Public Radio, and JR Ross, editor of WisPolitics.com, joined WCMA Senior Director of Programs and Policy Rebekah Sweeney in a panel discussion on the election’s implications for the sector.

Johnson notes third-party candidates are a bit of a wild card this year as voters who do not approve of Biden or Trump may turn elsewhere to cast their vote.

“Many people say they can’t stand Trump or Biden,” adds Ross, noting that Wisconsin may be the tipping point for the upcoming election.

He notes that Rep. Mike Gallagher, R-Wis., on Friday is expected to resign from the House, leaving House Republicans with a very thin majority of 217-213, meaning that they cannot afford to lose more than one vote on a party-line vote. The thin majority already has proved to be a challenge for Republican leadership and forced House Speaker Mike Johnson to work with Democrats to pass legislation.

“I think the problem is we are in one big election cycle that never stops,” Johnson says. “It’s a high-stress environment that is not conducive to governing.”

For example, an issue of importance to the dairy industry — immigration reform — has not seen significant progress among a divided government.

“It’s definitely not happening before the election,” Johnson says, adding that “candidates say different things than presidents do,” alluding to promises made on the campaign trail that may not come to fruition once a candidate is in office. He adds there’s a divide between what Trump/Republicans want (deportation) versus what the business community wants (more workers) when it comes to “reform.”

Next, Sweeney was joined by Mike Brown, chief economist at the International Dairy Foods Association (IDFA), and Gregg Doud, president and CEO of the National Milk Producers Federation (NMPF), to discuss another hot topic for the dairy industry — federal milk marketing order (FMMO) reform.

Stakeholders earlier this month submitted post-hearing briefs following the ongoing USDA hearing on proposals to reform FMMOs. The industry awaits a decision from USDA, now expected in July.

NMPF’s brief emphasized that farmers are the reason the FMMO system exists — and that, by law, their priorities are pre-eminent in USDA consideration of a final plan.

IDFA says the FMMO system must recognize the consistent year-over-year declines in fluid milk consumption while the remainder of the dairy industry is stable to growing. USDA must not unduly raise the regulated cost of any dairy products and must take into account the competitive impacts on the growing product offerings throughout the category in the areas of cheese, cultured products, dairy-based health beverages and powders, frozen treats and valued-added milk, among others. Both IDFA’s make allowance and Class I mover proposals are designed to help all dairy processors grow the industry to the long-term benefit of all participants, from farm to consumer, Brown says.

“We don’t have unity in the industry. NMPF is the biggest voice for producers, but not the only voice for the industry,” Brown says, adding, “I’ll be happy if the system works better even if we don’t get everything we want.”

Doud notes everyone wants an increase in the make allowance, but NMPF came up with a slightly different number than others in the industry wanted.

Sweeney says despite differences in opinion in how the make allowance should change, it seems all can agree that change is overdue.

And despite their differing opinions on FMMO reform, both Brown and Doud agree that the industry comes together on a lot of other issues, such as the recent spread of highly pathogenic avian influenza (HPAI), sustainability efforts and other policy issues.

“Change is coming, and we need to work together.,” Brown says.

The disagreement on FMMO reform is “a simple, natural friction between buyers and sellers,” Doud adds.

“When you don’t agree, you fight it out like family at the kitchen table, and you do want to present a united front on the things you agree on,” he says. “You have to be united if you’re going to get anything done.”

CMN

World Championship Cheese Auction raises record $423,480

April 19, 2024

MILWAUKEE — Attendees of this week’s CheeseExpo — hosted by the Wisconsin Cheese Makers Association (WCMA) and Center for Dairy Research — on Wednesday evening raised a record $423,480 during the World Championship Cheese Auction. Proceeds from the auction — which includes lots of first-place cheese award winners in the 2024 World Championship Cheese Contest — support WCMA education and training programs as well continuous improvement of the contest.

“The auction showcases the dairy processing industry’s tremendous support for the next generation — and 2024 was another resounding success. We’re deeply grateful to all of our bidders for their enthusiastic participation!” says John Umhoefer, WCMA executive director.

Ten pounds of the World Champion cheese, Hornbacher, made by Michael Spycher of Mountain Dairy Fritzenhaus in Switzerland, were purchased by Masters Gallery Foods for a total of $14,400. The largest bid of the night was $41,000 made by Custom Fabricating & Repair on 10 pounds of Processed American Slices made by Bongards Creameries of Minnesota.

Winning bids in each lot are as follows:

• Item 1: King Kraft — Cybertrol Engineering purchased 10 pounds of Philadelphia Cream Cheese made by Kraft Heinz, Beaver Dam, Wisconsin, for $150 per pound for a total of $1,500.

• Item 2: Arla Amazes — Food Safety Net Services purchased a combined 19 pounds of Castello Creamy Havarti and Castello Chipotle Gouda made by Arla USA Team, Arla Foods, Kaukauna, Wisconsin, for $145 per pound for a total of $2,755.

• Item 3: Luscious Land O’Lakes — TC Transcontinental Packaging purchased 40 pounds of Aged Cheddar made by Kiel Cheesemakers, Land O’Lakes, Kiel, Wisconsin, for $375 per pound for a total of $15,000.

• Item 4: Lovely LaClare — Hydrite purchased a combined 10 pounds of Original Goat Cheese and Maple Bourbon Goat Cheese made by Team LaClare, LaClare Creamery, Malone, Wisconsin, for $325 per pound for a total of $3,250.

• Item 5: Talented Tillamook — Advanced Process Technologies purchased 40 pounds of Tillamook Sharp Cheddar made by Tillamook, Tillamook, Oregon, for $325 per pound for a total of $13,000.

• Item 6: Lavish Lactalis — Mohawk Technology purchased a combined 20 pounds of Gopi Low Fat Yogurt and Labne Tzatziki Cheese made by Team 1, Central Valley Cheese Inc., Turlock, California;Galbani Mascarpone made by Aaron Price, Lactalis American Group, Nampa, Idaho; Galbani Part Skim Mozzarella and Galbani Low Fat Ricotta
made by Lactalis American Group, Buffalo, New York; and Président Double Cream Brie made by Lactalis USA, Belmont, Wisconsin, for $250 per pound for a total of $5,000.

• Item 7: Bonny Bongards — Custom Fabricating & Repair purchased 10 pounds of Processed American Slices made by Slice Production Team, Bongards Creameries, Bongards, Minnesota, for $4,100 per pound for a total of $41,000.

• Item 8: Guggisberg Greatness — Great Lakes Cheese purchased a combined 20 pounds of Ziller Wheel made by Team DV, Guggisberg Cheese, Millersburg, Ohio, and Smoked Swiss Cheese made by Team Sugarcreek, Guggisberg Cheese, Sugarcreek, Ohio, for $550 per pound for a total of $11,000.

• Item 9: Agropur Allure — Mohawk Technology purchased a combined 40 pounds of Cheddar made by Charlie Henn, Agropur, Weyauwega, Wisconsin; Colby Jack made by Agropur-Hull, Agropur, Hull, Iowa; and Agropur Grand Cheddar made by Agropur Fine Cheese Business Unit, Agropur Dairy Cooperative, Notre-Dame-du-Bon-Conseil, Quebec, for $400 per pound for a total of $16,000.

• Item 10: Widmer’s Wonder — Milk Specialties Global purchased 6 pounds of Jalapeno Brick Spread made by Widmer’s Cheese Cellars Team, Widmer’s Cheese Cellars Inc., Theresa, Wisconsin, for $475 per pound for a total of $2,850.

• Item 11: Klondike Gold — Alpma USA purchased 10 pounds of Odyssey Labneh made by Matt Martin, Klondike Cheese Co., Monroe, Wisconsin, for $1,200 per pound for a total of $12,000.

• Item 12: BelGioioso Brilliance — Milk Specialties Global purchased a combined 20 pounds of BelGioioso Sharp Provolone Mandarino made by Kevin Benzel and BelGioioso Crescenza-Stracchino made by
Christopher Gezella, both of BelGioioso Cheese Inc., Denmark, Wisconsin, for $250 per pound for a total of $5,000.

• Item 13: Pearl Valley’s Pearl — D.R. Tech purchased 50 pounds of Pearl Valley Swiss Cheese made by Pearl Valley Cheese, Fresno, Ohio, for $75 per pound for a total of $3,750.

• Item 14: Glorious Glanbia — Nelson-Jameson purchased a combined 40 pounds of Bandage Cheddar Medium made by Santiago Gomez, Pepper Jack made by Jose Pacheco and Reduced Sodium Cheddar made by Jasper Kim, all of Glanbia Nutritionals, Twin Falls, Idaho, for $475 per pound for a total of $19,000.

• Item 15: Hook’s Books Gold — Darlington Dairy Supply purchased 6 pounds of Little Boy Blue made by Team Hook, Hook’s Cheese Co. Inc., Mineral Point, Wisconsin, for $375 per pound for a total of $2,250.

• Item 16: Premier Prairie Farms — Loos Machine & Automation purchased 12 pounds of Neufchatel made by Luana Plant, Prairie Farms, Monona, Iowa, for $600 per pound for a total of $7,200.

• Item 17: Mighty Masters — Pine River Pre-Pack purchased 10 pounds of 3 State Sharp Shred Blend made by Masters Gallery Foods Inc., Plymouth, Wisconsin, for $1,000 per pound for a total of $10,000.

• Item 18: Nasonville Valor — Milk Specialties Global purchased 40 pounds of Monterey Jack made by Team Nasonville Dairy Inc., Nasonville Dairy Inc., Marshfield, Wisconsin, for $500 per pound for a total of $20,000.

• Item 19: Remarkable Renards — dsm-firmenich purchased 5 pounds of Savory Morel & Leek Cheese Spread made by Renard’s Rosewood Dairy Team, Rosewood Dairy Inc., Algoma, Wisconsin, for $600 per pound for a total of $3,000.

• Item 20: Super Schuman — D.R. Tech purchased a combined 45 pounds of Cello Artisan Extra Aged Asiago, Cello Artisan Copper Kettle Parmesan and Cello Black Pepper and Garlic Rubbed Fontal made by Team Lake Country Dairy, Schuman Cheese, Turtle Lake, Wisconsin, for $700 per pound for a total of $31,500.

• Item 21: Austrian Awe — T.C. Jacoby & Co. purchased a combined 30 pounds of Goesser Bierkaese and Arzberger Aurum made by Franz Moestl & Team, Almenland Stollenkaese, Arzberg, Austria, and Bio Berghüttenkäse made by Othmar Pichler & Team, Obersteirische Molkerei, Knittelfeld, Austria, for $175 per pound for a total of $5,250.

Item 22: Cabot, Nab It! — Ivarson Inc. purchased a combined 40 pounds of Cabot Pepper Jack made by Team Chateaugay, Cabot Creamery Cooperative, Chateaugay, New York; Cabot 83% Butterfat Sea Salted Butter Quarters made by Team West Springfield, Cabot Creamery Cooperative, West Springfield, Massachusetts; Cabot 1-Year Extra Sharp Cheddar Cracker Cuts made by Team Cabot, Cabot Creamery Cooperative, Cabot, Vermont; and Cabot Pepper Jack Shingled Slices made by Team Great Lakes, Cabot Creamery Cooperative, Hiram, Ohio, for $625 per pound for a total of $25,000.

• Item 23: Decatur’s Greater — Emmi Roth USA purchase a combined 10 pounds of Brick made by Matt Henze and Muenster Curd made by Steve Stettler, both of Decatur Dairy Inc., Brodhead, Wisconsin, for $1,500 per pound for a total of $15,000.

• Item 24: Grand Gilman — Loos Machine & Automation purchased 9 pounds of Naturally Smoked Gouda made by Dairyfood USA Inc., Gilman Cheese Corp., Blue Mounds, Wisconsin, for $300 per pound for a total of $2,700.

• Item 25: Shining Southwest — dsm-firmenich purchased a combined 40 pounds of Cows Milk Manchego and Briney Red and Green Jalapeno White Cheddar made by Southwest Cheese Team, Southwest Cheese, Clovis, New Mexico, for $275 per pound for a total of $11,000.

• Item 26: Mediterranean Marvels — Ivarson Inc. purchased a combined 20 pounds of Los Cameros Cured Sheep Cheese made by Lácteos Martínez, Haro, Spain; Cabra al Gofio made by Grupo Ganaderos de Fuerteventura, Puerto del Rosario, Spain; El Pastor San Ruffino Castellano PGI Gran Reserva Sheep Cheese made by Israel Santiago, Quesos El Pastor-Hijos de Salvador, Sanata Cristina, Spain; Amalattea Testadura & Podda Stagionato Classico made by Martina Tonelli, Granarolo, Italy; and Petit Agour & Petit Agour with Truffle made by Agour, Helette, France, for $175 per pound for a total of $3,500.

• Item 27: Foremost’s Foremost — Novonesis purchased 40 pounds of Medium Cheddar made by Foremost Farms USA, Marshfield, Wisconsin, for $350 per pound for a total of $14,000.

• Item 28: Magnificent Marieke — Wabash purchased a combined 50 pounds of Marieke Gouda Young 2-4 months, Marieke Gouda Mature 6-9 months and Marieke Gouda Young made by Marieke Gouda Team, Marieke Gouda, Thorp, Wisconsin, for $70 per pound for a total of $3,500.

• Item 29: Extraordinary Ellsworth — G&R Foods Inc. purchased 10 pounds of Hickory Bacon Cheddar Cheese Curds made by Team Ellsworth, Ellsworth Cooperative Creamery, Ellsworth, Wisconsin, for $850 per pound for a total of $8,500.

• Item 30: Meister’s Mastery — Kelley Supply purchased 40 pounds of Dill Havarti made by Meister Team 1, Meister Cheese, Muscoda, Wisconsin, for $425 per pound for a total of $17,000.

• Item 31: Going Dutch — Complete Filtration Resources purchased a combined 100 pounds of Smokey Gouda, Smokey Goat, Smokey BBQ and Sublime Sheep made by Kaasmakerij Henri Willig, Heerenveen, Netherlands; Gayo Azul Edam Ball Mature made by Royal FrieslandCampina, Marum, Netherlands; Parrano Robusto made by Royal FrieslandCampina, Steenderen, Netherlands; Noord-Hollandse Lutjewinkel 35+ Matured made by Royal FrieslandCampina, Lutjewinkel, Netherlands; Artikaas Vintage Lot 18 made by Dutch Cheese Makers, Heerenveen, Netherlands; Artikaas Smoked Gouda made by Dutch Cheese Makers, Lopik, Netherlands; Beemster Goat 4 months made by Team CONO, Beemster, Westbeemster, Netherlands; and Benning made by CheeseLand, Huizen, Netherlands, for $70 per pound for a total of $7,000.

• Item 32: Perfectly Agropur — Dahmes Stainless Inc. purchased a combined 20 pounds of Low Moisture Mozzarella, Whole Milk made by Patrick Doell, Agropur, Luxemburg, Wisconsin, and String Cheese made by Ken Carothers, Agropur, Little Chute, Wisconsin, for $550 per pound for a total of $11,000.

• Item 33: Astounding Artisans — Dairy Connection Inc. purchased a combined 50 pounds of Point Reyes Bay Blue made by Kuba Hemmerling & Team, Point Reyes Farmstead Cheese Co., Petaluma, California; Batch #17 and St. Malachi Reserve made by The Farm at Doe Run, Coatesville, Pennsylvania; Flagship Reserve and Flagsheep made by Beecher’s Handmade Cheese, Seattle; and Smoked Provolone made by Ferndale Farmstead, Ferndale, Washington, for $100 per pound for a total of $5,000.

• Item 34: Majestic MWC — Hydrite purchased a combined 40 pounds of Colby, Habanero Jack and Black Pepper Cheddar made by Team MWC, MWC, St. Johns, Michigan, for $300 per pound for a total of $12,000.

• Item 35: Supreme Switzerland — T.C. Jacoby & Co. purchased a combined 100 pounds of L’Etivaz AOP made by François Raynaud-Les Chargiaux, Coopérative des Producteurs de Fromages d’Alpages L’Etivaz, Château-d’Oex, Switzerland; Gruyere made by René Pernet, Fromagerie du Haut-Jorat, Peney-le-Jorat, Switzerland; Appenzeller Silver Label made by Marcel Gabriel, Käserei Schollrüti, Appenzeller Käse, Appenzell, Switzerland; Appenzeller Black Label made by Johannes Eberle, Käserei Muolen, Appenzeller Käse, Appenzell, Switzerland; du Père made by Peter and Timon Vogel, Vogel Käsehandwerk, Schoenholzerswilen, Switzerland; Biocella made by Fabian Spielhofer, Brülisauer Käse, Künten, Switzerland; and Gourmino Emmentaler AOP Surchoix made by Beni Naef, Village Dairy Guntershausen, Gourmino, Gutershausen, Switzerland, for $125 per pound for a total of $12,500.

• Item 36: Victorious V&V — Masters Gallery Foods purchased a combined 15 pounds of Chihuahua with Jalapeno Shredded Quesadilla Cheese made by Justin Blazeski, V&V Supremo Foods-Browntown Plant, Browntown, Wisconsin; and Crumbled Queso Fresco Cheese and Grated Sierra Brand Cotija made by V&V Supremo-Team Chicago, V&V Supremo Foods, Chicago, for $500 per pound for a total of $7,500.

• Item 37: Winning Henning — ProActive Solutions USA purchased a combined 30 pounds of Aged Cheddar Midget made by Joshua Henning and Dragon’s Breath Cheddar made by Zachary Henning, both of Henning Cheese Inc., Kiel, Wisconsin, for $325 per pound for a total of $9,750.

• Item 38: Pine River Gold Pack — Masters Gallery Foods purchased 10 pounds of Aged Asiago Cold Pack Cheese Food made by Team Pine River, Pine River Pre-Pack Inc., Newton, Wisconsin, for $450 per pound for a total of $4,500.

• Item 39: Regal Kingdom — dsm-firmenich purchased a combined 12 pounds of Kingston Creamery Smoked Blue and Breezy Blue made by Team Kingston Cheese, Kingston Cheese Cooperative, Cambria, Wisconsin, for $300 per pound for a total of $3,600.

• Item 40: Saputo Splendor — Wisconsin Aging & Grading Cheese Inc. purchased 17 pounds of Heidi Farm Tilsit made by Bruce Turner, Saputo Dairy Australia, Burnie, Australia, for $125 per pound for a total of $2,125.

• Item 41: Organic Valley Opulence — Loos Machine & Automation purchased 45 pounds of Organic American
Cheese-Premium Pasteurized Prepared Cheese (White) made by Team Revela, CROPP Cooperative/Organic Valley, Colby, Wisconsin, for $80 per pound for a total of $3,600.

• Item 42: The World Champion! — Masters Gallery Foods purchased 12 pounds of Hornbacher made by Michael Spycher, Mountain Dairy Fritzenhaus, Gourmino, Fritzenhaus, Bern, Switzerland, for $1,200 per pound for a total of $14,400.

CMN

February U.S. cheese production rises 3.0% from one year earlier

April 19, 2024

WASHINGTON — The National Milk Producers Federation (NMPF), U.S. Dairy Export Council (USDEC) and Consortium for Common Food Names (CCFN) commended this week’s House Ways and Means Committee markup of a bill that would renew the Generalized Systems of Preferences (GSP) trade program with new agriculture-specific eligibility criteria, giving U.S. dairy producers a fairer opportunity to sell their products in key markets. GSP has not been in effect since it expired at the end of 2020.

The GSP trade program helps developing countries use trade to grow their economies by eliminating U.S. duties for a wide range of products. GSP-eligible countries must meet certain conditions. This bill will introduce new provisions for the agriculture industry, including requirements that beneficiary countries provide open and equitable market access to U.S. agriculture exports and protect the generic use of common food and beverage terms like “parmesan” and “feta.”

“The U.S. dairy community is grateful for these expanded criteria, which will enable America’s dairy farmers and producers to compete on a level playing field in these new and growing markets,” said Krysta Harden, USDEC president and CEO. “A special thank you to Reps. Adrian Smith, Jimmy Panetta and Michelle Fischbach, who continue to be champions for the U.S. dairy industry. Now more than ever, our members count on exports to succeed, and we look forward to supporting this bill through to the finish line.”

Gregg Doud, NMPF president and CEO, also thanked the representatives for working to preserve market access and create a level playing field for U.S. dairy exports.

“American dairy producers and cooperatives rely upon fair access to international markets,” he says.

The groups add that as the European Union continues to try to monopolize common name foods and beverages by imposing overreaching geographical indication policies on countries worldwide, the new GSP eligibility requirements would provide a vital response on behalf of American cheesemakers.

“The European Union has expanded its protectionist and anti-competitive campaign to monopolize common name food and beverages well beyond its borders, to countries in every corner of the globe,” says Jaime Castaneda, CCFN executive director. “The U.S. government has the political and economic influence to fight back. We’re pleased to see that Congress is starting to utilize the tools at its disposal to secure producers’ common names rights.”

CMN

Rebound in U.S. dairy exports boosts CME spot cheese price

April 12, 2024

By Alyssa Mitchell

MADISON, Wis. — Spot cheese and butter prices at the Chicago Mercantile Exchange (CME) ended the week of April 5 on near-term highs as news of improved export numbers boosted market sentiment, analysts say.

“The February export data was bullish for cheese — the largest volume exported since June 2022,” says Mike McCully,
owner of McCully Consulting, South Bend, Indiana. (For more on export numbers, see related article on page 5.)

CME spot Cheddar barrels settled at $1.53 per pound April 5, up 8 cents, while blocks settled at $1.5150 per pound, up 7.5 cents.

While these prices are not highs for the year, they are an improvement from prices seen in recent weeks, as Cheddar blocks dipped into the upper $1.30s in March. This week, cheese prices continued to move upward, settling at $1.5725 for barrels and $1.5350 for blocks today.

In addition to positive export news, the rise in cheese prices may be due to oversold conditions, says Eric Meyer, president of HighGround Dairy, Chicago.

“We’ve had poor cheese demand throughout Q1 and price levels that I think most people, four to five months ago, felt were far too low,” Meyer says, referencing prices in the $1.30s and $1.40s seen earlier this year.

He adds that while there is milk availability — due largely to the seasonal spring flush — milk production isn’t really growing from year-ago levels. Additionally, Cheddar production is down for the first two months of the year on a daily average basis.

Sara Dorland, managing partner with Ceres Dairy Risk Management, Seattle, agrees, noting Cheddar output was down 7.1% in February — a significant drop contrasted against improving demand.

However, U.S. cheese prices, both spot and futures, currently are at a significant discount to global prices, Dorland adds.

“That could provide a tremendous advantage for U.S. exporters. The gap to Europe is 40-50 cents per pound — that could encourage European brokers to source U.S. cheese to fulfill their commitments,” she says.

CME spot butter, meanwhile, reached a yearly high of $2.94 per pound last week before bumping up another 3 cents on Monday to $2.97. Butter since has declined 5 cents to settle at $2.92 per pound today.

Analysts are a bit more stumped on the butter market, with McCully noting it has many “perplexed.”

“Most of the supply fundamentals are not that bullish, or in some cases, a bit bearish. However, demand remains strong, particularly at retail. Butter is being used as a loss leader, so consumers are not getting the signal to cut back on purchases. In addition, there is less and less bulk butter being produced, which has tightened the supply of CME tradeable butter. Given the runs to $3.25-$3.50 in the last two years, my outlook is for butter prices to exceed $3 for most of the rest of the year,” McCully says, adding, however, that the upside is hard to predict given the nervousness in the market.

Dorland notes butter output is above last year, and stocks are building.

“Over the past two years when prices climb above $2.75 per pound, demand falters,” she says. “Whether $3 is too much too fast will hinge on whether consumers continue to buy and what retail prices look like over the next few months.”

When it comes to the butter market, “anything is possible,” Meyer says.

“These price levels we’re seeing are much higher than expectations, even given the latest fundamental news in the market. We’ve got strong butter production levels, and cream multiples are more normal for this time of year,” he says.

“We won’t necessarily be exporting more than we did in 2023, but it still provides a reason for buyers to want to own the physical asset, especially if we’re at prices this high during the spring,” Meyer says, adding that the threat of prices being any higher around a heat wave or slowing milk production, for example, would incentivize buyers to procure product now.

Meanwhile, analysts reiterate that current ample milk supplies likely are seasonal at best.

“Unless there is a big jump in cow numbers in the next few months, which is not expected, milk production is forecast to remain below year-ago levels to mid-year,” McCully says.

He adds, however, that by July, the year-over-year comparisons become much easier, and improving dairy farm margins should support modest growth at that point.

Meyer notes that the macro picture from a milk production perspective is that dairy farmers in this country are not seeing much profitability in their milk checks today.

“There is a lot of cheese capacity going in. While I think the milk ultimately will be there for these plants, I think there are still a lot of producers who don’t have an incentive to grow production,” he says.

CMN

Dairy groups raise concerns with final WIC rule from USDA

April 12, 2024

WASHINGTON — The International Dairy Foods Association (IDFA) and National Milk Producers Federation (NMPF) expressed disappointment in a final rule released this week by USDA to update the Special Supplemental Nutrition Program for Women, Infants and Children (WIC), which maintained the proposed rule’s cuts to dairy in the WIC food packages. WIC is a vital program ensuring that pregnant women, new mothers, infants and children have access to key nutrients that may be lacking in their diets, so decreasing the amount of dairy decreases the nutrients they are accessing through it, the organizations say.

“NMPF is disturbed by the decision to reduce access to the essential nutrients dairy adds to the diet,” says Gregg Doud, NMPF president and CEO. “Nutrition science demonstrates that dairy products like milk, yogurt and cheese are especially important for women, infants and children; meanwhile, nearly 90% of Americans don’t meet the number of dairy servings recommended by the 2020-2025 Dietary Guidelines for Americans. This rule works against the WIC program’s goal of ensuring all Americans have consistent and equitable access to healthy, safe and affordable foods.”

Milk, cheese, and yogurt are three of the five top redeemed items through WIC. They also provide three of the four nutrients of public health concern identified in the 2020 guidelines.

“At a time of rising food costs, it’s important to focus on increasing access to a wide variety of healthful, nutrient-dense and affordable foods, including both fresh produce and dairy products,” Doud says. “It’s disappointing that the final rule limits WIC family purchasing power for nutritious dairy foods.”

Michael Dykes, IDFA president and CEO, says the final rule cuts the amount of milk that can be purchased by up to 3 gallons per family per month at a time of high food prices, stubborn inflation and rising hunger rates, and harms nutrition security by disregarding the Dietary Guidelines’ findings that dairy items in the WIC food package are under-consumed.

“IDFA has polled WIC participants and 35% say they will need to use non-WIC funds to cover purchases of milk and dairy due to these cuts,” Dykes says. “Another 33% say the cuts will make their shopping for milk and dairy products harder. Some may decide not to re-enroll in WIC because of the cuts. Partners like state WIC agencies, local health clinics and anti-hunger groups will be forced to explain USDA’s WIC cuts to 6 million low-income mothers and children under the age of 5.”

While disappointed in the cuts to the dairy allotments in the WIC packages, NMPF and IDFA note they appreciate the rule’s requirement that states offer lactose-free milk and a wider selection of product package sizes. These changes will help make dairy products more accessible for all WIC participants, they say.

Dykes notes IDFA has worked for many years to create flexibility that allows WIC participants to swap a portion of their milk allotment for reasonably sized portions of yogurt (such as 4-, 5.3- and 6-ounce cups) totaling up to 32 ounces, rather than one 32-ounce tub.

“With that change in place, WIC participants will have greater access to nutrient-dense foods that help participants meet the program’s nutrient recommendations,” Dykes says. “We look forward to the opportunity to collaborate with USDA to encourage states to fully utilize the rule’s provisions that expand options for yogurt and cheese, and to mitigate the cuts to milk benefits.”

CMN

February U.S. cheese production rises 3.0% from one year earlier

April 12, 2024

WASHINGTON — February U.S. cheese production, excluding cottage cheese, totaled 1.133 billion pounds, up 3.0% from the 1.100 billion pounds of cheese produced in February 2023, but down 0.6% on an average daily basis accounting for leap day, according to data released last week by USDA’s Natural Agricultural Statistics Service (NASS). (All figures are rounded. Please see CMN’s Dairy Production chart on page 14.) February cheese production was down 5.6% from the 1.201 billion pounds produced in January, but up 0.9% an average daily basis.

Italian-type cheese production in February totaled 479.0 million pounds, up 4.4% from February 2023. Production of Mozzarella, the largest component of Italian-type cheese production, totaled 373.2 million pounds in February, up 3.2% from a year earlier.

American-type cheese production in February totaled 437.7 million pounds, down 1.2% from February 2023. Production of Cheddar, the largest component of American-type cheese, totaled 304.9 million pounds, down 3.8% from February 2023.

Wisconsin was the leading cheese-producing state with 283.3 million pounds produced in February, up 4.0% from February 2023. California followed with 200.9 million pounds produced in February, down 0.5% from a year earlier.

U.S. production of butter totaled 197.6 million pounds in February, up 5.6% from February 2023 and up 1.9% on an average daily basis accounting for leap day.

CMN

Today's Cheese Spot Trading
April 29, 2024

Barrels: $1.7725 (NC)
Blocks: $1.7500 (NC)

Click here for more market activity

Three trends from CheeseExpo

Ryan Dykstra, Tetra Pak U.S. and Canada

Also this week: “Is avian flu a threat to U.S. dairy?” by Michael Dykes and “What’s in store for second half of 2024 for U.S. dairy markets” by Mike McCully

© 2024 Cheese Market News • Quarne Publishing, LLC • Legal Information • Online Privacy Policy • Terms and Conditions
Cheese Market News • Business/Advertising Office: P.O. Box 628254 • Middleton, WI 53562 • 608/831-6002
Cheese Market News • Editorial Office: 5315 Wall Street, Suite 100 • Madison, WI 53718 • 608/288-9090