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Board of Directors Meeting Friday, September 18, 2015 Chicago, IL
Board of Directors
Meeting
Friday, September 18, 2015
Chicago, IL
AMERICAN DAIRY PRODUCTS INSTITUTEAMERICAN DAIRY PRODUCTS INSTITUTEAMERICAN DAIRY PRODUCTS INSTITUTEAMERICAN DAIRY PRODUCTS INSTITUTE2015 - 20162015 - 20162015 - 20162015 - 2016
OFFICERSOFFICERSOFFICERSOFFICERS
PRESIDENT - Doug Wilke, Foremost Farms USA, Baraboo, WIPRESIDENT - Doug Wilke, Foremost Farms USA, Baraboo, WIPRESIDENT - Doug Wilke, Foremost Farms USA, Baraboo, WIPRESIDENT - Doug Wilke, Foremost Farms USA, Baraboo, WI
VICE-PRESIDENT - Jerry O'Dea, Glanbia Nutritionals, Inc., Fitchburg, WIVICE-PRESIDENT - Jerry O'Dea, Glanbia Nutritionals, Inc., Fitchburg, WIVICE-PRESIDENT - Jerry O'Dea, Glanbia Nutritionals, Inc., Fitchburg, WIVICE-PRESIDENT - Jerry O'Dea, Glanbia Nutritionals, Inc., Fitchburg, WI
SECRETARY - Kevin Vogt, Hilmar Ingredients, Hilmar, CASECRETARY - Kevin Vogt, Hilmar Ingredients, Hilmar, CASECRETARY - Kevin Vogt, Hilmar Ingredients, Hilmar, CASECRETARY - Kevin Vogt, Hilmar Ingredients, Hilmar, CA
TREASURER - Dalyn Dye, Hoogwegt U.S., Inc., Lake Forest, ILTREASURER - Dalyn Dye, Hoogwegt U.S., Inc., Lake Forest, ILTREASURER - Dalyn Dye, Hoogwegt U.S., Inc., Lake Forest, ILTREASURER - Dalyn Dye, Hoogwegt U.S., Inc., Lake Forest, IL
BOARD OF DIRECTORSBOARD OF DIRECTORSBOARD OF DIRECTORSBOARD OF DIRECTORS(Expiration of term indicated in parenthesis)
Craig Alexander (2016)*Craig Alexander (2016)*Craig Alexander (2016)*Craig Alexander (2016)*
O-AT-KA Milk Products Coop., Inc.
P.O. Box 718
Batavia, NY 14021-0718
(585) 343-0536 (585) 343-4473 FAX
(700 Ellicott St.)
(800) 828-8152
Paul Bauer (2016)Paul Bauer (2016)Paul Bauer (2016)Paul Bauer (2016)
Ellsworth Coop. Creamery
P.O. Box 610
Ellsworth, WI 54011
(715) 273-4311 (715) 273-5318 FAX
(232 N. Wallace)
Tom Berry (2017)Tom Berry (2017)Tom Berry (2017)Tom Berry (2017)
Associated Milk Producers, Inc.
P.O. Box 455
New Ulm, MN 56073-0455
(507) 354-8245 (507) 359-8608 FAX
(315 N. Broadway)
(800) 533-3580
William Bond (2016)William Bond (2016)William Bond (2016)William Bond (2016)
J.M. Smucker Company
5078 Broxburn Ct.
Dublin, OH 43017
(614) 792-3378 (614) 467-2205 FAX
Richard Bradfield (2016)*Richard Bradfield (2016)*Richard Bradfield (2016)*Richard Bradfield (2016)*
International Ingredient Corporation
150 Larkin Williams Industrial Ct.
Fenton, MO 63026
(636) 343-4111 x.1280 (636) 349-4845 FAX
(800) 227-8427
Kevin Burke (2018)*Kevin Burke (2018)*Kevin Burke (2018)*Kevin Burke (2018)*
Leprino Foods Company
1830 W. 38th Ave.
Denver, CO 80211
(303) 480-2600 (303) 480-2605 FAX
(800) 537-7466
September 18, 2015* Executive Committee
Dermot Carey (2017)*Dermot Carey (2017)*Dermot Carey (2017)*Dermot Carey (2017)*
Darigold, Inc.
P.O. Box 34377
Seattle, WA 98124-1377
(206) 284-7220 x732 (206) 298-6893 FAX
(1130 Rainier Ave. South)
(800) 333-6455
M. Jane Carlisle, Jr. (2016)M. Jane Carlisle, Jr. (2016)M. Jane Carlisle, Jr. (2016)M. Jane Carlisle, Jr. (2016)
United International LLC
104 Mullach Court, Suite 1008
Wentzville, MO 63385
(636) 327-5910 (636) 327-5904 FAX
(800) 292-3509
Yann Connan (2016)Yann Connan (2016)Yann Connan (2016)Yann Connan (2016)
Lactalis Ingredients
2376 S. Park Avenue
Buffalo, NY 14220
(716) 823-6262 (716) 827-9728 FAX
(888) LACTALIS
Jon Davis (2016)*Jon Davis (2016)*Jon Davis (2016)*Jon Davis (2016)*
Davisco Foods a Business unit of Agropur
7500 Flying Cloud Drive, #250A
Eden Prairie, MN 55344
(952) 914-0400 (952) 914-0887 FAX
Jim Dodson (2017)Jim Dodson (2017)Jim Dodson (2017)Jim Dodson (2017)
Michigan Milk Producers Assn.
P.O. Box 8002
Novi, MI 48376-8002
(248) 474-6672 (248) 426-3412 FAX
(41310 Bridge St. - 48376-1302)
(800) 233-2405
R. Gregory Dryer (2017)*R. Gregory Dryer (2017)*R. Gregory Dryer (2017)*R. Gregory Dryer (2017)*
Saputo Cheese USA Inc.
One Overlook Point, Suite 300
Lincolnshire, IL 60069
(847) 267-3380 (847) 267-0618 FAX
Dalyn Dye (2016)*Dalyn Dye (2016)*Dalyn Dye (2016)*Dalyn Dye (2016)*
Hoogwegt U.S., Inc.
100 S. Saunders Rd., #200
Lake Forest, IL 60045
(847) 918-8787 (847) 918-9189 FAX
(800) 443-3445
Kevin Ellis (2017)Kevin Ellis (2017)Kevin Ellis (2017)Kevin Ellis (2017)
Cayuga Milk Ingredients
15 Eagle Drive
Auburn, NY 13021
(315) 364-0070 (315) 364-0003 FAX
September 18, 2015* Executive Committee
Clint Fall (2016)Clint Fall (2016)Clint Fall (2016)Clint Fall (2016)
First District Association
101 S. Swift Ave.
Litchfield, MN 55355
(320) 693-3236 (320) 693-6243 FAX
Tim Gomez (2017)Tim Gomez (2017)Tim Gomez (2017)Tim Gomez (2017)
Kansas Dairy Ingredients
7306 NW Tiffany Springs Pkwy., #110
Kansas City, MO 64153
(855) 526-2192 (816) 470-9854 FAX
Keith Grove (2016)Keith Grove (2016)Keith Grove (2016)Keith Grove (2016)
Bongards' Creameries
13200 County Rd. 51
Bongards, MN 55368
(952) 466-3514 (952) 466-3593 FAX
Susie Hjorth (2016)Susie Hjorth (2016)Susie Hjorth (2016)Susie Hjorth (2016)
Arla Foods Ingredients, Inc.
106 Allen Rd., 4th Floor
Basking Ridge, NJ 07920
(908) 346-6263 (908) 604-9310 FAX
Hoyt Huffman (2017)Hoyt Huffman (2017)Hoyt Huffman (2017)Hoyt Huffman (2017)
DairyAmerica, Inc.
7815 N. Palm Ave., #250
Fresno, CA 93711-5531
(559) 251-0992 (559) 251-1078-FAX
(800)722-3110
Jeff Johnson (2016)Jeff Johnson (2016)Jeff Johnson (2016)Jeff Johnson (2016)
T.C. Jacoby & Company Inc.
1716 Hidden Creek Court
St. Louis, MO 63131
(314) 822-5942 (314) 909-2042 FAX
(800) 877-9556 x104
Mark Korsmeyer (2016)*Mark Korsmeyer (2016)*Mark Korsmeyer (2016)*Mark Korsmeyer (2016)*
Dairy Farmers of America, Inc.
10220 N. Ambassador Dr.
Kansas City, MO 64153
(816) 801-6714 (816) 801-6715 FAX
(888) DFA-MILK
Mark Leddy (2018)Mark Leddy (2018)Mark Leddy (2018)Mark Leddy (2018)
Valley Queen Cheese Co.
P.O. Box Drawer 351
Milbank, SD 57252-0351
(605) 432-4563 (605) 432-9383 FAX
September 18, 2015* Executive Committee
David Lenzmeier (2016)*David Lenzmeier (2016)*David Lenzmeier (2016)*David Lenzmeier (2016)*
Milk Specialties Global
7500 Flying Cloud Dr., #500
Eden Prairie, MN 55344
(651) 967-8805 (952) 942-7611-FAX
Brian Linney (2017)Brian Linney (2017)Brian Linney (2017)Brian Linney (2017)
MD & VA Milk Producers Coop. Assn.
1985 Isaac Newton Square West
Reston, VA 20190
(703) 742-6800 (703) 742-7459 FAX
(425) 330-3323 CELL
Scott Meister (2017)Scott Meister (2017)Scott Meister (2017)Scott Meister (2017)
Muscoda Protein Products
PO Box 68
Muscoda, WI 53573
(608) 739-3141 (608) 739-4450 FAX
(960 Industrial Drive)
Keith Murfield (2016)*Keith Murfield (2016)*Keith Murfield (2016)*Keith Murfield (2016)*
United Dairymen of Arizona
PO Box 26877
Tempe, AZ 85285
(480) 966-7211 (480) 966-1795 FAX
(2008 S. Hardy Dr.)
Tom Murphy (2016)Tom Murphy (2016)Tom Murphy (2016)Tom Murphy (2016)
Brewster Cheese Company
800 Wabash Avenue S
Brewster, OH 44613
(330) 767-3492 (330) 767-3386-FAX
(800) 874-8874
William Neary (2017)*William Neary (2017)*William Neary (2017)*William Neary (2017)*
Land O' Lakes, Inc.
PO Box 64101
St. Paul, MN 55164
(651) 375-2353 (651) 234-9072 FAX
Brad Nielsen (2017)Brad Nielsen (2017)Brad Nielsen (2017)Brad Nielsen (2017)
Grande Cheese Company
301 E. Main St.
Lomira, WI 53048
(920) 269-1391 (920) 269-1445 FAX
(800) 678-3122
Jerry O'Dea (2018)*Jerry O'Dea (2018)*Jerry O'Dea (2018)*Jerry O'Dea (2018)*
Glanbia Nutritionals, Inc.
5951 McKee Rd., #201
Fitchburg, WI 53719
(608) 329-2800 (608) 316-8504 FAX
(800) 336-2183
September 18, 2015* Executive Committee
Steve Patience (2018)Steve Patience (2018)Steve Patience (2018)Steve Patience (2018)
Tillamook County Creamery Association
4185 Highway 101 North
Tillamook, OR 97141
(503) 842-4481 (503) 842-6039 FAX
Arthur Pike (2018)Arthur Pike (2018)Arthur Pike (2018)Arthur Pike (2018)
Mead Johnson Nutrition
2400 W. Lloyd Expressway
Evansville, IN 47721-0001
(812) 429-8802 (812) 647-8202 FAX
Gerald Reilly (2017)Gerald Reilly (2017)Gerald Reilly (2017)Gerald Reilly (2017)
Reilly Dairy & Food Company
P.O. Box 130197
Tampa, FL 33681-0197
(813) 839-8458 (813) 839-0394 FAX
(6603 S. Trask Ave. - 33616-1434)
Jeremy Riggs (2018)Jeremy Riggs (2018)Jeremy Riggs (2018)Jeremy Riggs (2018)
Franklin Farms East, Inc.
PO Box 164
Asbury, NJ 08802-0164
(908) 835-0016 (908) 835-0760 FAX
(111 W. Washington Ave. Washington, NJ 07882)
(908) 763-9837
Randy Robinson (2018)Randy Robinson (2018)Randy Robinson (2018)Randy Robinson (2018)
High Desert Milk, Inc.
1033 Idaho Ave.
Burley, ID 83318
(208) 878-6455 (208) 678-2486 FAX
Tara Russell (2018)Tara Russell (2018)Tara Russell (2018)Tara Russell (2018)
Idaho Milk Products
2249 S. Tiger Dr.
Jerome, ID 83338
(208) 320-0111 (208) 644-2899 FAX
Jeff Saforek (2018)Jeff Saforek (2018)Jeff Saforek (2018)Jeff Saforek (2018)
Swiss Valley Farms Cooperative
247 Research Parkway
Davenport, IA 52806-7342
(563) 468-6600 (563) 468-6613 FAX
(800) 747-6113
Bill Schwantes (2016)Bill Schwantes (2016)Bill Schwantes (2016)Bill Schwantes (2016)
Lynn Protein
W1929 Hwy 10
Granton, WI 54436
(715) 238-7129 (715) 238-7130 FAX
September 18, 2015* Executive Committee
Gabriel Sevilla (2016)Gabriel Sevilla (2016)Gabriel Sevilla (2016)Gabriel Sevilla (2016)
Proliant Dairy Ingredients
2425 SE Oak Tree Ct.
Ankeny, IA 50021
(515) 289-5157 (515) 289-5821-FAX
(800) 369-2672
John Sleggs (2018)*John Sleggs (2018)*John Sleggs (2018)*John Sleggs (2018)*
Great Lakes Cheese Co., Inc.
4520 Haskell Rd.
Cuba, NY 14727
(585) 968-2914 (585) 968-2660 FAX
(800) 367-9439
Pam Sleper (2018)Pam Sleper (2018)Pam Sleper (2018)Pam Sleper (2018)
Nestle USA, Inc.
30003 Bainbridge Rd.
Solon, OH 44139-2290
(440) 349-5757 x.5312 (440) 498-7862 FAX
Scott Springer (2016)Scott Springer (2016)Scott Springer (2016)Scott Springer (2016)
Nutegrity USA
970 Douglas Rd.
Batavia, IL 60510-2294
(630) 761-1180 (630) 761-1190 FAX
Richard Stammer (2018)*Richard Stammer (2018)*Richard Stammer (2018)*Richard Stammer (2018)*
Agri-Mark, Inc.
P.O. Box 5800
Lawrence, MA 01842-5800
(978) 689-4442 (978) 685-8716 FAX
(Milk St. Office Pk-Methuen 01844)
John Tedford (2017)John Tedford (2017)John Tedford (2017)John Tedford (2017)
Tedford/Tellico, Inc.
9181 Hunter Valley Lane
Knoxville, TN 37922
(865) 531-3400 (865) 531-0740-FAX
(800) 833-3673
Jeff Vandel (2016)Jeff Vandel (2016)Jeff Vandel (2016)Jeff Vandel (2016)
James Farrell & Co.
157 Yesler Way, Suite 600
Seattle, WA 98104
(206) 623-1993 (206) 623-5396 FAX
Kevin Vogt (2016)*Kevin Vogt (2016)*Kevin Vogt (2016)*Kevin Vogt (2016)*
Hilmar Ingredients
PO Box 910
Hilmar, CA 95324-0910
(209) 667-6076 (209) 634-1408 FAX
(9001 North Lander Ave.)
September 18, 2015* Executive Committee
Doug Wilke (2018)*Doug Wilke (2018)*Doug Wilke (2018)*Doug Wilke (2018)*
Foremost Farms USA
E10889 Penny Lane
Baraboo, WI 53913-0111
(608) 355-8700 (608) 356-3575 FAX
(800) 367-6678
September 18, 2015* Executive Committee
Business Case for CME Cash Whey Market
August 2015 The following white paper details the business case for developing a centralized market at the Chicago Mercantile Exchange (CME) to improve the price discovery for whey products. A number of the current problems with whey price discovery mirror those in the NFDM in recent years. In response to the NFDM issues, the Innovation Center for U.S. Dairy undertook a project to improve the risk management and price discovery of NFDM. As a result, changes in industry practices have greatly improved the viability of the CME NFDM cash market and the timeliness of USDA price reports, both key enablers for the US dairy industry to be a more consistent global supplier. Given the issues with whey price reporting in 2015, industry participants have expressed interest in developing a CME cash market for one or more dry whey products. Background Over recent months, problems with whey pricing have become more apparent. Prices in the USDA National Dairy Products Sales Report (NDPSR) for dry whey have not reflected actual market conditions. At times, spot prices for dry whey have been significantly below the NDPSR price. As a result, the cost of other solids (whey solids) in class 3 milk is overstated versus the market causing financial losses for cheese plants. Additionally, plants making higher protein products have seen margins shrink, as their milk cost, based on dry whey, did not reflect the value of the whey products they were selling. While any changes to Federal Order milk pricing would take several years to occur, in the short-term, there are several options the industry could consider to improve whey price discovery. In the late 1990’s, when Federal Order reform was being deliberated, dry whey was selected as the product to value other solids in class 3 milk. In 1998, total dry whey production in the US totaled 1.178 billion pounds. But by 2014, that figure had dropped 26% to 870 million as cheese plants shifted production to higher protein whey products. In just the last 5 years, high protein WPC production has increased nearly 40%, but dry whey production has declined 10%. So, while dry whey powder was a good representative product of the whey complex 15-20 years ago, it is much less so today.
Price discovery for whey products is less than optimal, or in the case of high protein products, non-existent. Prices for dry whey in the US are available from several sources including weekly USDA NDPSR and Dairy Market News reports as well as daily CME futures prices. One of the main issues with the NDSPR price series is its circularity where this week’s reported price is a reflection of last week’s price due to the number of NDPSR-based contracts included in the weekly report. This keeps the NDPSR price from being an accurate indicator of current cash prices. In addition, dry whey is a product where a significant amount of product is bought and sold by brokers/resellers, yet those prices are not included in the NDPSR price series. The other main source of dry whey prices is the voluntary reporting from Dairy Market News. This series also has been criticized in recent times as not reflecting current market conditions. A task force at ADPI has been working with USDA to improve both the whey and lactose price reporting in Dairy Market News. One idea that has been discussed in the past is the development of a spot or cash market for whey at the CME. For years, the dairy industry has used the CME spot markets for price discovery for cheese and butter, and more recently, for NFDM. Could a spot market for whey provide the industry with a standard price benchmark? This idea is appealing for several reasons:
• The industry uses the CME for price discovery for cheese, butter, and NFDM • Spot prices would reflect current market conditions • If the industry evolved to CME-based pricing, the circularity in the NDPSR would be reduced or
eliminated.
As a corollary, NDPSR prices for NFDM have also suffered from the circularity issue, but as more companies have moved to CME-based pricing, this is a much smaller problem than past years. A CME cash market is not without some drawbacks. By definition, a spot market is more volatile as the price reflects the marginal value of a product. The industry would need to decide whether this is desirable or not. And at some point, CME futures markets could be used for price discovery like other agricultural commodities, although the current milk pricing system makes this unlikely. One of the key questions about a CME spot market for whey is which product should be traded – dry whey, WPC 34, or WPC 80. As noted above, dry whey is becoming less relevant, but is still important in milk pricing. With increasing focus on protein, either WPC 34 or WPC 80 might be a better option. A price for WPC 34 could be used to base other whey products off of given different protein levels. One could argue WPC 80 has become the commodity whey product, yet without any price history to analyze, it is difficult to determine how this would work. There is a case to be made for each product and pro’s and con’s would need to be considered. In addition, it will be important to define the specification for the chosen product to ensure it represents the base commodity product and will attract adequate interest from both buyers and sellers. Expected Benefits The development of a centralized cash market at the CME would provide the industry several key benefits:
• Timely - A cash price that reflects current market conditions as opposed to lagging indicators in USDA NDPSR reports
• Broader Participation – Allows for brokers and secondary sales where spot activity takes place; Improves timeliness of price transmission to marketplace
• New Benchmark – Over time, the CME cash price could become a price discovery mechanism if the industry voluntarily chooses as it has in cheese, butter, and more recently NFDM
Proposed Next Steps Given the broad interest from the cheese industry in whey pricing currently, it is recommended to pursue a joint industry effort to develop a proposal for the CME.
1. Review business case white paper with IC Risk Management Work Team and ADPI Whey Task Force
2. Identify and solicit input from key stakeholders within and outside of IC and ADPI groups 3. Develop draft proposal for CME including desired product(s) and specification; Write language in
the format of CME Rules 4. Gain approval from IC and ADPI groups – send letter to CME if approved 5. Encourage other key stakeholders to support proposal
The goal is to present a proposal to the CME by November 1.
AMERICAN DAIRY PRODUCTS INSTITUTE BOARD OF DIRECTORS MEETING
Friday, September 18, 2015
The Gwen 521 North Rush Street
AG E N D A
7:30am: Breakfast Session:
• Dairy Market Outlook: US & global macro supply/demand trends. Key dairy issues, implications & insights for the next 5 years.
. Presenter [Mike McCully- McCully Group]
• Discussion: Whey Price Discovery *
8:15am: Call Board Meeting to Order [D. Wilke]
• Determination of Quorum
• Welcome & Introductions
• Approval of Agenda *
• Antitrust Policy / Statement * [J. Coffey]
• Approval of Minutes of April, 2015 Board Meeting *
• Introduction of New Board Members:
- Scott Meister: Muscoda Protein
- Tara Russell: Idaho Milk Products
(Filling the unexpired term of Kent Giddings)
- Kevin Burke: Leprino Foods
(Filling the unexpired term of Paul Vraciu)
• Financial Review
1. ADPI Financial Review: 2015 Year to Date * [S. Griffin]
2. 2015 Annual Meeting Financials * [S. Griffin]
3. 2015 Expected Year-end results * [S. Griffin]
4. 2016 Preliminary 2016 Budget * [S. Griffin]
5. Membership Update [D. Thomas]
• New members for approval
• ADPI Strategy Refresh: Discussion * [D. Thomas]
- Mike Felmlee, Prouty Project
• Standing Committee & Task Force Reports & Discussion: Key Issues *
1. Standards Committee
• New ADPI standards *
• Current and proposed task force work
2. Technical Committee
• Cheese Color Task Force *
3. Marketing Committee
• Census
• Dairy Market News Task Force
• Lactose Task Force
o Lactose Seminar
• Permeate Task Force
o Poultry Study
o Codex standard *
• Report on upcoming ADPI meetings and seminars
o Dairy Ingredient Seminar (Sept 22-23 in Santa Barbara) *
o Global Cheese Technology Forum (Oct 26-28 in Reno) *
o Risk Management Seminar (Nov 9-11 in Chicago) *
• Other business
o Annual Meeting, 2017 IWC & future board meetings
o Discuss key issues of concern & feedback from Executive Committee
• Adjourn
* Please refer to separate document(s) included in your Directors’ Meeting Binder
126 N. Addison Avenue Phone: (630) 530-8700 Elmhurst, IL 60126 Fax: (630) 530- 8707
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ANTITRUST COMPLIANCE POLICY
[To Be Distributed At ADPI Meetings]
The American Dairy Products Institute (ADPI) is the national association for manufactured dairy products, whose principal purpose is to promote the acceptance and use of processed dairy products, both nationally and internationally, by communicating the many positive health and nutritional attributes of milk-derived products. ADPI’s members include manufacturers of evaporated and condensed milk, dry milk, cheese and whey products; firms that provide supplies and services to processors; and many companies that either use or trade these manufactured dairy products or are otherwise involved in the dairy industry. ADPI members may be competitors with one another and may also engage in supply or distribution relationships. ADPI’s efforts to advance the common interests of the manufactured dairy products industry necessarily require contact, communication and cooperation among its members. All such collaborative efforts shall be conducted in strict compliance with the federal and state antitrust laws which ensure unrestrained trade and encourage vigorous economic competition. ADPI and its members recognize that antitrust laws form the foundation for a competitive free-market economy, and that a competitive marketplace is consistent with the members’ business interests. ADPI and it members understand that violations of federal and state antitrust laws can have serious consequences for the association, its members and their employees.
Accordingly, the following principles shall govern all activities of ADPI and its members:
• Whether in official ADPI meetings or outside thereof (e.g., informal meetings, social gatherings, and in telephone and email communications), competitors shall not: (i) fix or discuss pricing or terms relating to products or services; (ii) discuss “fair” margins or profitability levels; (iii) allocate or divide customers or markets or discuss respective market shares; (iv) discuss boycotts or jointly refuse to deal with third parties; or (v) otherwise act, or agree to act, in concert to restrict the competitive capabilities
or opportunities of their competitors, suppliers, or customers.
• Membership and participation in ADPI is voluntary and failure to join or participate in ADPI’s activities or support ADPI’s position shall not result in any form of sanctions. Further, ADPI members shall not be limited in any of their dealings with non-members.
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• ADPI meetings shall be governed by an agenda prepared in advance and approved prior to such meetings. Accurate minutes of such meetings shall be timely prepared and subsequently approved by the members.
• It is desirable that legal counsel be present at all ADPI Board meetings to monitor discussions among the members and to ensure that such discussions are appropriate and do not deviate toward subjects prohibited under antitrust law.
• Statistical compilations, reporting programs or other information collected from members or otherwise developed by ADPI shall be governed by procedures reviewed and approved by legal counsel.
• The formulation and adoption by ADPI of any uniform standard or other industry practice shall not unlawfully favor one group of competitors over another and shall be governed by procedures reviewed and approved by legal counsel.
• All ADPI members should receive a copy of this Antitrust Policy Statement and from time to time, legal counsel shall review with ADPI members their obligations under the applicable antitrust laws, particularly with respect to trade association activities.
American Dairy Products Institute
- ♦ -
MINUTES of the
BOARD OF DIRECTORS MEETING ♦
Tuesday, April 28, 2015 Hyatt Regency Chicago
Chicago, Illinois
- ♦ - Attendance –
Directors: Doug Wilke, President Scott Meister Craig Alexander Keith Murfield Richard Bradfield Tom Murphy Kevin Burke Dermot Carey
Brad Nielsen Jerry Reilly
Jane Carlisle, Jr. Randy Robinson Jon Davis Jim Dodson
Gabriel Sevilla John Sleggs
Greg Dryer Dalyn Dye Clint Fall Tim Gomez Keith Grove
Scott Springer Richard Stammer John Tedford Jeff Vandel Kevin Vogt
Susie Hjorth Hoyt Huffman Jeff Johnson Mark Korsmeyer
Others: Dave Thomas Lee Blakely John Coffey
David Lenzmeier Brian Linney
Steve Griffin Dan Meyer Ken Shook
- ♦ - President Craig Alexander called the ADPI Board meeting to order at approximately 12:00 pm following the conclusion of the ADPI Business meeting, noting that a quorum still existed. President Alexander then called the Directors’ attention to ADPI’s Antitrust Compliance Policy, a complete copy of which was included in each Director’s meeting binder, reminding all members to
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conduct themselves in accordance with said policy. Craig also noted that John Coffey, ADPI Counsel, was present for the meeting. APPROVAL OF AGENDA After a review of the Agenda, it was moved, seconded and unanimously agreed to approve the Agenda for the meeting. APPROVAL OF MINUTES President Alexander stated that the minutes of the February 20, 2015 ADPI Board meeting were included in each Director’s folders. President Alexander asked for review and additions. Upon a motion and a second, the February 20, 2015 minutes were unanimously approved as submitted. President Alexander recognized and congratulated ADPI’s newly elected and re-elected Directors. He reminded all Directors that a new Board listing and contact information were included in their Board folders. ELECTION OF OFFICERS A motion was received to elect Doug Wilke as President of the ADPI Board for a term of two years, beginning April 28, 2015. The motion was seconded, and since no other nominations were received, action was taken to unanimously elect Doug Wilke as ADPI Board president. President Doug Wilke now moderating meeting. President Wilke thanked the Board for their confidence and pledged to execute his duties of ADPI President professionally and successfully. Doug also thanked Craig Alexander for his strong leadership as President and for his eight years as on officer. President Wilke received individual motions to elect the following individuals as ADPI officers: Jerry O’Dea as Vice President Kevin Vogt as Secretary Dalyn Dye as Treasurer Each of the officer nominations were discussed and voted on individually. Each nomination was seconded, and after no further nominations were received, unanimous votes of the Board confirmed their election as ADPI Officers. APPROVAL OF ADPI EXECUTIVE COMMITTEE President Wilke stated that in accordance with Institute By-Laws, the Executive Committee is comprised of not less than 9 nor more than 18 Directors, elected from and by the Board, and that the President, Vice President, Secretary, Treasurer and immediate past President are automatically members of the Executive Committee.
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A motion was received from the floor to nominate the following individuals to the Executive Committee for the 2015-2016 terms:
Richard Bradfield, Kevin Burke, Dermot Carey, Jon Davis, Greg Dryer, Mark Korsmeyer, Dave Lenzmeier, Keith Murfield, Bill Neary, John Sleggs and Richard Stammer, (joining automatically assigned members Doug Wilke, Jerry O’Dea, Kevin Vogt, Dalyn Dye and Craig Alexander).
Receiving no additional nominations, the motion was seconded and approved unanimously. REPORT: Finance Committee Steve Griffin presented the 1st Quarter 2015 Financial Report. Steve reported that ADPI’s revenues were 10% above budget through the 1st quarter of 2015 and expenses were on budget through the 1st Quarter of 2015. Steve also mentioned that the 2015 ADPI/ABI Annual Conference achieved record attendance with over 960 attendees at the conference. AUTHORIZATION OF CEO TO MANAGE THE AFFAIRS OF ADPI At the request of President Wilke, the following motion was received from the floor:
Resolved that pursuant to Article XI of the ADPI By-Laws, David Thomas, as Chief Executive Officer of the Institute, be, and he hereby is, authorized: (i) to conduct the business affairs and operations of the Institute;
(ii) to enter into and execute contracts on behalf of the Institute; (iii) to establish bank accounts and credit accounts, make deposits and
sign checks and drafts on behalf of the Institute; and (iv) to take such other actions that may be appropriate to carry out the foregoing
responsibilities. The motion was seconded and unanimously approved. REPORT: Upcoming Events Dave Thomas reported on the upcoming ADPI sponsored events:
• IFT Food Expo will be held July 11 - 14 at McCormick Place in Chicago, IL • ADPI Dairy Ingredient Seminar will be held September 22 - 23 at the Fess Parker Doubletree in
Santa Barbara, CA • Global Cheese Technology Forum will be held October 26 - 28 at the Peppermill Resort in Reno,
NV • ADPI/CME Dairy Risk Management Seminar will be held November 9 - 11 at the CME
Auditorium in Chicago, IL DISCUSSION: Fall 2015 Board Meeting Dave Thomas noted that the Fall Board Meeting will be held on September 17th and 18th at the Conrad Hotel in Chicago, IL.
- ♦ - There being no further business to transact, upon a motion and a second, the meeting was adjourned.
3
2015 Annual Business & Board Meeting
MOTION FOR ACTION
ELECTION OF PRESIDENT 1st MOTION: I hereby submit a Motion to nominate Doug Wilke, as ADPI President, for a 2 year term ending in 2017.
4
2015 Annual Business & Board Meeting
MOTION FOR ACTION
ELECTION OF VICE-PRESIDENT 2nd MOTION: I hereby submit a Motion to nominate Jerry O’Dea as ADPI Vice-President, for a 2 year term ending in 2017.
5
2015 Annual Business & Board Meeting
MOTION FOR ACTION
ELECTION OF SECRETARY 3rd MOTION: I hereby submit a Motion to nominate Kevin Vogt as ADPI Secretary, for a 2 year term ending in 2017.
6
2015 Annual Business & Board Meeting
MOTION FOR ACTION
ELECTION OF TREASURER 4th MOTION: I hereby submit a Motion to nominate Dalyn Dye as ADPI Treasurer, for a 2 year term ending in 2017.
7
2015 Annual Business & Board Meeting
MOTION FOR ACTION
ELECTION OF EXECUTIVE COMMITTEE 5th MOTION: I hereby submit a Motion to nominate
Richard Bradfield, Kevin Burke, Dermot Carey, Jon Davis, Greg Dryer, Mark Korsmeyer, Dave Lenzmeier, Keith Murfield, Bill Neary, John Sleggs and Richard Stammer
to join the previously mentioned officer group as additional members of the Executive Committee.
8
2015 Annual Business & Board Meeting
MOTION FOR ACTION
ELECTION OF NEW DIRECTORS 6th MOTION:
I hereby submit a motion that the following be elected to the Board of Directors of ADPI:
• Kevin Burke to represent Leprino Foods Company with his term ending in 2018 replacing Paul
Vraciu who resigned from the board.
9
2015 Annual Business & Board Meeting
MOTION FOR ACTION
AUTHORIZATION OF CEO TO CONDUCT
BUSINESS AND AFFAIRS OF THE INSTITUTE
7th MOTION: I move that the following resolution be adopted:
Resolved, that pursuant to Article XI of the Bylaws Dave Thomas, as Chief Executive Officer of the Institute, be, and he hereby is authorized:
(i) to conduct the business affairs and operations of the Institute;
(ii) to enter into and execute contracts on behalf of the Institute;
(iii) to establish bank accounts and credit accounts, make deposits, and sign checks and
drafts on behalf of the Institute; and
(iv) to take such other actions that may be appropriate to carry out the foregoing
responsibilities.
10
3 Month 3 Month $ % 3 Month 3 Month $ %INCOME: Actual Budget Variance Variance EXPENSES: Actual Budget Variance VarianceMembership Dues $323,811 $311,350 $12,461 4% Rent $24,816 $24,700 $116 0%Interest Income 1,353 1,275 78 6% Utilities 2,954 2,900 54 2%Printed Matter 3,935 2,225 1,710 77% Office Supplies/Printing/Postage 1,430 3,900 (2,470) -63%Annual Conference 525,118 458,600 66,518 15% Subscriptions/Dues/Memberships 17,045 17,050 (5) 0%Global Cheese Technology 47,559 45,300 2,259 5% Equipment/Maintenance 3,708 4,400 (692) -16%Rental Income 3,600 3,600 0 0% Insurance 0 0 0 0%Other / Miscellaneous 845 475 370 78% Audit/Legal 0 0 0 0% Total Income $906,221 $822,825 $83,396 10% Meetings 2,493 2,550 (57) -2%
Membership 40 750 (710) -95%Travel 7,086 5,750 1,336 23%Credit Card Fees 1,624 1,525 99 6%
EXPENSES: Advertising/Promotion 0 1,000 (1,000) -100%General &Administrative $387,635 $391,025 ($3,390) -1% Center of Excellence 0 0 0 0%Washington Program 10,000 10,000 0 0% Training Academy 0 0 0 0%Research 15,000 15,000 0 0% Strategic Planning 12,500 12,500 0 0%Statistical Services 0 0 0 0% Miscellaneous 6,694 4,250 2,444 58%Committee Programs Salaries 198,811 198,825 (14) 0% Affiliate Member 0 0 0 0% Health & Welfare 28,816 31,200 (2,384) -8% Dairy Products Marketing 824 825 (1) 0% Payroll Taxes 19,404 19,500 (96) 0% Evaporated Milk 0 0 0 0% Retirement 60,214 60,225 (11) 0% Technical 3,159 1,200 1,959 163% Washington Program 10,000 10,000 0 0% Total Expenses $416,618 $418,050 ($1,432) 0% Research 15,000 15,000 0 0%
Statical Services 0 0 0 0%Affiliate Member Committee 0 0 0 0%Dairy Products Mktg Committee 824 825 (1) 0%Evaporated Milk Committee 0 0 0 0%Technical Committee 3,159 1,200 1,959 163%
To (from) Reserves $489,603 $404,775 $84,828 21% Total Expenses $416,618 $418,050 ($1,432) 0%
American Dairy Products Institute
2015 1st Quarter Budget Update
11
− ♦ −
Financial Report
Financial Update - January - August, 2015
Financial Projections - 2015 Annual
Preliminary 2016 Budget
− ♦ −
September 17, 2015 - Executive/Finance Committee
September 18, 2015 - Board of Directors
MILK WHEY CHEESE
MANUFACTURER MANUFACTURER MANUFACTURER OTHER1 TOTAL
YTD 2015 $166,229 $379,352 $5,601 $212,834 $764,017
YTD 2014 $145,198 $343,863 $5,186 $224,020 $718,267
VARIANCE
$45,750
6.4%
PROJECTED TOTAL 2015 $1,075,000
TOTAL 2014 $1,008,832
VARIANCE
$66,168
6.6%
1Includes dues income from Affiliate, Associate Manufacturer, Evaporated Milk Processor, Individual, International
Trading Company and Utilization Members.
Checking Account $306,142Investments (Liquid) 678,414Investments (Non-Liquid) 462,924 Balance 8/31/15 $1,447,480
Checking Account $250,000Investments (Liquid) 576,954Investments (Non-Liquid) 462,924 Balance 12/31/15 $1,289,878
2015 Projected Fund Balance (12/31/15)
American Dairy Products Institute
− ♦ −
Dues Revenue
Fund Balance (as of 08/31/15)
YTD YTD VAR 2015 2015 % varYTD BUDGET TO BUDGET PROJECTED BUDGET BUDGET
REVENUE:Membership Dues $764,017 $794,075 ($30,058) $1,075,000 $1,150,000 -6.5%Interest Income 10,835 6,125 4,710 14,825 10,000 48.3%Printed Matter 9,800 7,200 2,600 13,000 11,000 18.2%Annual Conference* 350,133 425,000 (74,867) 350,125 425,000 -17.6%Dairy Ingredient Seminar* 39,926 39,375 551 20,000 20,000 0.0%Dairy Risk Management Seminar* 9,458 13,300 (3,842) 10,500 10,500 0.0%Global Cheese Technology Forum* 81,629 111,150 (29,521) 3,000 3,000 0.0%Website Advertising 0 500 (500) 500 1,000 -50.0%Rental Income 9,600 9,600 0 14,400 14,400 0.0%Other/Miscellaneous 41 600 (559) 100 900 -88.9%
TOTAL $1,275,439 $1,406,925 ($131,486) $1,501,450 $1,645,800 -8.8%
* Net Income
EXPENSES:General & Administrative $905,706 $904,925 $781 $1,286,775 $1,296,700 -0.8%Washington Program 23,996 25,000 (1,004) 25,000 25,000 0.0%Research 15,000 15,000 0 15,000 15,000 0.0%Statistical Services 4,512 5,000 (488) 4,525 10,000 -54.8%Committee Programs Affiliate Member 356 400 (44) 1,375 1,400 -1.8% Dairy Products Marketing 6,666 8,000 (1,334) 8,100 8,000 1.3% Evaporated Milk 0 250 (250) 0 250 -100.0% Technical 11,426 9,000 2,426 10,500 9,000 16.7%
TOTAL $967,662 $967,575 $87 $1,351,275 $1,365,350 -1.0%
To (From) Reserves $307,777 $439,350 ($131,573) $150,175 $280,450 ($130,275)
American Dairy Products Institute
− ♦ −
Financial Update - January - August, 2015
YEAR END PROJECTIONS
YTD YTD VAR YEAR-END 2015YTD BUDGET TO BUDGET PROJECTIONS BUDGET
GENERAL & ADMINISTRATIVERent $94,329 $93,800 $529 $149,950 $146,900Utilities 6,827 8,100 (1,273) 11,500 12,000Office Supplies/Printing/Postage 6,077 10,500 (4,423) 10,000 15,700Subscriptions/Dues/Memberships 18,615 17,050 1,565 19,500 19,500Equipment/Maintenance 11,656 11,300 356 17,750 17,600Insurance 0 0 0 9,500 9,500Audit/Legal 13,964 15,525 (1,561) 18,000 20,000Meetings 45,258 49,000 (3,742) 75,500 100,000Membership 844 4,500 (3,656) 3,800 7,500WPC Proficiency Testing 2,824 0 2,824 0 0Travel 16,720 13,675 3,045 31,350 20,000Credit Card Fees 2,895 2,600 295 4,300 3,500Advertising/Promotion 1,000 2,000 (1,000) 3,000 3,000Strategic Planning 29,951 25,000 4,951 35,000 25,000Center of Excellence 40,000 40,000 0 36,000 40,000Training Academy 0 0 0 10,000 10,000Miscellaneous 12,905 5,800 7,105 14,400 7,000 Sub Total $303,865 $298,850 $5,015 $449,550 $457,200Employee Benefits Salaries $441,085 $441,075 $10 $634,900 $634,900 Health & Welfare 66,164 68,100 (1,936) 98,350 98,350 Payroll Taxes 32,532 33,500 (968) 41,900 42,850 Retirement 62,060 63,400 (1,340) 62,075 63,400 Sub Total $601,841 $606,075 ($4,234) $837,225 $839,500
$905,706 $904,925 $781 $1,286,775 $1,296,700
American Dairy Products Institute
− ♦ −
Financial Update - January - August, 2015Expenses Breakout
YTD YTD VAR YEAR-END 2015YTD BUDGET TO BUDGET PROJECTIONS BUDGET
American Dairy Products Institute
− ♦ −
Financial Update - January - August, 2015Expenses Breakout
WASHINGTON PROGRAMProfessional Services $23,996 $25,000 ($1,004) $25,000 $25,000
$23,996 $25,000 ($1,004) $25,000 $25,000RESEARCH
Whey Protein Consortium $15,000 $15,000 $0 $15,000 $15,000$15,000 $15,000 $0 $15,000 $15,000
STATISTICAL SERVICESConsulting Services $0 $0 $0 $0 $5,000Utilization Publication 4,512 5,000 (488) 4,525 5,000
$4,512 $5,000 ($488) $4,525 $10,000COMMITTEE PROGRAMS
Affiliate Committee Scholarship $0 $0 $0 $1,000 $1,000 Meetings 356 400 (44) 375 400
$356 $400 ($44) $1,375 $1,400Dairy Products Mktg Committee Annual Meeting Seminar $3,000 $3,000 $0 $3,000 $3,000 Exhibits 2,096 3,500 (1,404) 3,500 3,500 Meetings 1,039 1,000 39 1,050 1,000 Travel 531 500 31 550 500
$6,666 $8,000 ($1,334) $8,100 $8,000Evaporated Milk Committee Meetings $0 $250 ($250) $0 $250
$0 $250 ($250) $0 $250Technical Committee Annual Meeting Seminar $3,000 $3,000 $0 $3,000 $3,000 Exhibits 4,786 3,500 1,286 3,500 3,500 NDM Testing Fees 342 1,000 (658) 700 1,000 Meetings 2,567 1,000 1,567 2,575 1,000 Travel 731 500 231 725 500
$11,426 $9,000 $2,426 $10,500 $9,000
Total Disbursements $967,662 $967,575 $87 $1,351,275 $1,365,350
PRELIMINARY2013 2014 2015 2016
ACTUAL ACTUAL PROJECTION ESTIMATEREVENUE:Membership Dues $847,772 $1,008,832 $1,075,000 $1,150,000Interest Income 4,373 6,049 14,825 15,000Printed Matter 9,280 11,505 13,000 13,000Annual Conference* 346,757 392,917 350,125 375,000Dairy Ingredient Seminar* 17,026 17,820 20,000 20,000Technical Seminar* 0 3,201 0 3,000Global Cheese Technology Forum* 0 2,220 3,000 0Dairy Risk Management Seminar* 5,027 10,784 10,500 10,500Website Advertising 1,200 550 500 500Rental Income 12,200 13,600 14,400 14,400Other / Miscellaneous 248 929 100 100
TOTAL $1,243,883 $1,468,407 $1,501,450 $1,601,500
* Net Income
EXPENSES:General & Administrative $1,016,628 $1,130,110 $1,286,775 $1,410,050Washington Program 30,826 18,860 25,000 25,000Research 7,000 3,000 15,000 15,000Statistical Services 3,408 4,234 4,525 5,000Committee Programs Affiliate Member 1,139 1,356 1,375 1,375 Dairy Products Marketing 6,614 4,660 8,100 8,100 Evaporated Milk 0 0 0 250 Technical 8,131 18,096 10,500 10,800
TOTAL $1,073,746 $1,180,316 $1,351,275 $1,475,575
To (from) Reserves $170,137 $288,091 $150,175 $125,925
2016 Projected Fund Balance (12/31/16)
$250,000702,879462,924
Checking Account Investments (Liquid) Investments (Non-Liquid) Balance 12/31/16 $1,415,803
American Dairy Products Institute
− ♦ −
Preliminary 2016 Budget
PRELIMINARY2013 2014 2015 2016
ACTUAL ACTUAL PROJECTION ESTIMATEGENERAL & ADMINISTRATIVE
Rent $53,332 $75,295 $149,950 $166,850Utilities 9,589 11,273 11,500 11,500Office Supplies/Printing/Postage 10,120 15,618 10,000 10,000Subscriptions/Dues/Memberships 19,707 19,155 19,500 19,500Equipment/Maintenance 18,464 19,225 17,750 17,750Insurance 8,852 9,095 9,500 9,500Audit/Legal 19,928 19,200 18,000 20,000Meetings 58,302 95,630 75,500 100,000Membership 5,430 3,428 3,800 5,000WPC Proficiency Testing 822 0 0 0Travel 19,885 28,587 31,350 35,000Credit Card Fees 2,429 4,388 4,300 4,300Advertising/Promotion 2,378 2,982 3,000 3,000Website Redesign 16,201 0 0 0Logo Redesign 4,192 0 0 0Strategic Planning 0 0 35,000 10,000Center of Excellence 40,475 40,000 36,000 40,000Training Academy 0 4,389 10,000 10,000
Miscellaneous 10,588 6,497 14,400 10,000
Sub Total $300,694 $354,762 $449,550 $472,400Employee Benefits Salaries $568,239 $608,989 $634,900 $697,400 Health & Welfare 58,093 65,750 98,350 123,450 Payroll Taxes 39,687 41,642 41,900 52,300 Retirement 49,915 58,967 62,075 64,500
Sub Total $715,934 $775,348 $837,225 $937,650
$1,016,628 $1,130,110 $1,286,775 $1,410,050
American Dairy Products Institute
− ♦ −
Preliminary 2016 BudgetExpenses Breakout
PRELIMINARY2013 2014 2015 2016
ACTUAL ACTUAL PROJECTION ESTIMATE
American Dairy Products Institute
− ♦ −
Preliminary 2016 BudgetExpenses Breakout
WASHINGTON PROGRAMProfessional Services $30,826 $18,860 $25,000 $25,000
$30,826 $18,860 $25,000 $25,000RESEARCH
Whey Protein Consortium $7,000 $3,000 $15,000 $15,000$7,000 $3,000 $15,000 $15,000
STATISTICAL SERVICESConsulting Services $0 $0 $0 $0Utilization Publication 3,408 4,234 4,525 5,000
$3,408 $4,234 $4,525 $5,000COMMITTEE PROGRAMS
Affiliate Member Committee Scholarship $1,000 $1,000 $1,000 $1,000 Meetings 139 356 375 375
$1,139 $1,356 $1,375 $1,375Dairy Products Mktg Committee Annual Meeting Seminar $3,000 $3,000 $3,000 $3,000 Exhibits 2,748 1,537 3,500 3,500 Meetings 402 113 1,050 1,050 Travel 464 10 550 550
$6,614 $4,660 $8,100 $8,100Evaporated Milk Committee Meetings $0 $0 $0 $250
$0 $0 $0 $250
Technical Committee Annual Meeting Seminar $3,000 $3,000 $3,000 $3,000 Exhibits 2,748 10,483 3,500 3,500 NDM Testing Fees 1,633 0 700 1,000 Meetings 286 4,613 2,575 2,575 Travel 464 0 725 725
$8,131 $18,096 $10,500 $10,800
Total Disbursements $1,073,746 $1,180,316 $1,351,275 $1,475,575
ADPI Strategic Plan 2016 – 2018 Vision:
To be the world’s “go to” authority on dairy ingredients
Technical Support Establish ADPI as the leader in the development of industry standards for dairy ingredients and specifications globally. • Clearly define what
constitutes an ADPI standard • Publish new ADPI standards
book • Increase links with
international standards development bodies (IDF, Codex, USP, etc.)
• Address differences between U.S. and international ingredient specifications and test methods
• Clarify role of ADPI as leader in standards development with other associations
Improve in-house technical expertise / knowledge. • Hire a strong technical leader Support and fund appropriate research.
Training and Education
Reinvigorate the ADPI Center of Excellence. • Communication: extend
deeper into member organizations
• Examine resources and re-launch
Expand the ADPI Training Academy. • On-line curriculum • Relevant to ingredient users
and ADPI members Continue to enhance and strengthen ADPI meetings and seminars. • Increase international / global
engagement
Market Support
Improve / enhance relevance of dairy products utilization and production trends report. • Evaluate usage and value Monitor and seek to influence the technical / commercial issues that impact the dairy ingredients issues. • Price discovery and risk
management Explore the use of social media for multi-generational members / leaders / users. • Explore ADPI Facebook page,
Blog, App, website chatroom, LinkedIn group, etc.)
Explore the development of product-specific websites for dairy ingredients.
Marshaling Resources
Review board structure / governance. • International representation? • Term limits on Executive
Committee? • Committee structure? Develop formal staffing / succession plans. Increase ADPI awareness of who and what it does with other global organizations. • Clarify roles of ADPI relative
to other dairy associations, especially USDEC
ADPI Mission: We seek to increase the worldwide use of dairy ingredients by marshaling the technical, manufacturing, and
marketing resources of our members and others.
ADPI STANDING COMMITTEES AND TASK FORCES
As a member of ADPI – we invite you to nominate people from your organization to serve on one of
the many ADPI committees and task forces:
ADPI
Board of Directors
Executive Committee
Technical Committee
ADPI Training
Academy Task
Force
Evaporated Milk Committee
Center of
Excellence
Task Force
Technical
Symposium
Task Force
Cheese Color
Task Force
NPE
Task Force
Standards
Committee
Bulletin 916
Task Force
W-16
Task Force
Colostrum
Task Force
Marketing Committee
Dairy Ingredient
Seminar
Task Force
DMN Task Force
Lactose
Task Force
Permeate
Task Force
Risk Management
Task Force
Annual Census
Task Force
Affiliate Committee
ADPI Standing Committees
Evaporated Milk Committee: Manufacturers of evaporated and sweetened condensed milk address
issues of common concern. Members include:
Bill Bond – J.M. Smucker Co. (Chair) Pam Sleper – Nestle
Craig Alexander – O-AT-KA Rich Edelman – O-AT-KA
David Crisp – O-AT-KA
Technical Committee: Focuses on the development of standards and the review of regulatory issues
affecting the dairy ingredient industry. Committee oversees the work of the Lactose, Permeate, MPC
and Whey Standards, and Milk Standards Task Forces. Members include technical/QA personnel from
ADPI manufacturer members. Members include:
Jenny Reuter - Foremost Farms Tom Berry – AMPI; Doug King - Davisco Foods Dave Kedzierski - Agri-Mark Roger Ellis - Saputo Bob Hagberg - Land O’Lakes Tom Helm - Grande Cheese Richard Merrill - Leprino Foods Barney Krueger - Glanbia Foods (Chair) Ken Shook - Brewster Dairy Greg Chandler – Darigold Ruben Ontiveros - DairyAmerica Carl Teravainen - O-AT-KA Milk Products Chao Wu - Hilmar Ingredients Marc Percival - Land O’Lakes Helena Soedjak – DFA Andy Powers - Hoogwegt Amendeep Dhillon – Michigan Milk Suvash Kafley – Milk Specialties
Marketing Committee: Goal of committee is to increase sales through the dissemination of general
promotional and technical marketing information and to provide a strong, effective marketing voice
which will enhance the industry’s image. The committee oversees the work of the following task forces:
ADPI/DMN Interface, Annual Census, Website / Re-branding, and Annual meeting. It helps plan
agendas for Annual ADPI Ingredient Seminar and Risk Management Seminar. Members include
sales/marketing personnel from member companies. Current members include:
Marc Beck – USDEC Jane Carlisle – United International Steven Bronfield – Agri-Dairy John Connolly – MMPA Dave Kyes – Hoogwegt Michael Gilmartin – CCC Doug Glade – Dairy Farmers of America Keith Gretenhart – Foremost Peter Gutierrez – Agri-Mark Jack Hoops – Land O’Lakes Jeff Johnson – TC Jacoby Scott Marckini – Batory Foods Mustafa Kemal – Mercator Richard Bradfield – IIC Brad Nielsen – Grande Roger Kittelson – Grande Andri Kuswendra – Clofine Ellen Lusk – Agropur Ingredients Sean McAuliffe – Carlyn Laurie Rath – JM Swank Rich Mollitor – Chicago Dairy (Chair) Linda Myhr – Proliant Kyle Newkirk – Hershey Larry Pacha – Pejsa Enter. Steve Patience – Tillamook Charles Randall – Great Lakes Marc Shroads – Louis Dreyfus Commodities Tom Roosevelt – Roosevelt Dairy Virginie Saulnier – Saputo Dan Block - DairyAmerica
Affiliate Committee: Represents the interests of all ADPI affiliate members. Focus on solicitation
new members; increasing Annual Conference Participation (attendance, exhibitors, and industry
receptions); supporting the Jim Page Memorial Scholarship; and conduct the Award of Merit Program.
Members include:
Jane Carlisle, United International Industries Nathan Allen, GEA Process Engineering Gary Fabel, Dana Foods (Chair) Glenn Grimshaw, Hunter, Walton & Co. Todd Hutson, Filtration Engineering Don Street, Louis Dreyfus Commodities Kraig Stube, Charles Stube Company Jonathan O’Dea, Cole Taylor Bank
Standards Committee: Consensus body made of members of the Marketing and Technical
Committees to oversee the development or revision of ADPI product standards or ingredient
descriptions.
Richard Mollitor, Chicago Dairy (co-chair) Barney Krueger, Glanbia (co-chair) Doug King, Davisco Jenny Reuter, Foremost Jack Hoops, Land ‘O Lakes Amandeep Dhillon, Michigan Milk Brad Nielsen, Grande Richard Merrill, Leprino Foods Katie Quinn, James Farrell Greg Chandler, Darigold Doug Glade, DFA Suvash Kafley, Milk Specialties Andy Powers, Hoogwegt James Hrusovsky, UDA Jane Carlisle, United International Tim Opper, AgriMark Gabriel Sevilla, Proliant Steve Heim, Agropur Virginie Saulnier, Saputo Chao Wu, Hilmar Dan Block – DairyAmerica
ADPI Task Forces:
AMS/DMNS Task Force: Work with the Dairy Market News (AMS) to improve the process of
product price discovery to more accurately reflect market conditions.
David Thomas (ADPI) – (Chair) Dalyn Dye (Hoogwegt)
Michael Gilmartin (Commercial Creamery) Jeff Johnson (T.C. Jacoby)
Jim Lees (Glanbia) Dan Meyer (ADPI)
Rich Mollitor (Chicago Dairy) Linda Myhr (Proliant)
Doug King (Davisco) Kevin Quinn (Leprino)
Virginie Saulnier (Saputo) Jeremy Riggs (Franklin Farms East)
Jim Sommerfeld (First District) Kevin Vogt (Hilmar)
Jim Walsh (AMPI) Brian Rice (Rice Dairy)
Hoyt Huffman (DairyAmerica)
ADPI Training Academy Task Force: Create an ADPI Education and Training Academy, which will
produce and make available short training videos to be used by members.
Dave Thomas – ADPI (Chair) Beth Holcomb – ADPI David Kedzierski – AgriMark Brian Rice – Rice Dairy KJ Burrington – WCDR (COE) Jim Sullivan - COE
Risk Management Task Force: Assist in the development on the Annual ADPI / CME Risk
Management Seminar, and consider other opportunities to increase the use of risk management tools by
the industry.
Steve Griffin – ADPI (Chair) Andrew Burt – Leprino
Ben Laine – AgriMark Brad Nielsen – Grande
Christian Edmiston – Land ‘O Lakes Grant Gondell – DairyAmerica
Ed Gallagher – DFA Joe Diglio – Michigan Milk
Jon Spainhour – Rice Dairy Ken Bailey – Darigold
Mark Dahlstrom – Hilmar Mike McCully – COE
Robert Chesler – FC Stone Umberto Brizuela – Hoogwegt
Vai Shah – Glanbia Foods Dave Thomas – ADPI
Lactose Task Force: Promoting new applications for lactose and seek ways to stimulate demand.
Coordinate lactose survey amongst members.
Tom Berry, AMPI Tyler Anderson, Hoogwegt
Doug King, Davisco Foods Steve Spaeth, Grande Cheese
Paul Nelson, Rice Dairy Keith Gretenhart, Foremost Farms
Dan LaMarche, Agropur Ken Shook, Brewster Dairy
Ryan Nielsen, Wapsie Valley Creamery Jerry O’Dea, Glanbia Foods
Virginie Saulnier, Saputo Jim Sommerfeld, First District Assn.
Jim Taniwaki, Leprino Foods (Chair) Kevin Vogt, Hilmar Ingredients
Danielle Black, Milk Specialties Tom Ielmini, Hilmar Ingredients
Permeate Task Force: Developing uniform standards for permeate, including methods of analysis –
with a goal to gain approval for permeate acceptance in China for food applications. Promoting new
applications for permeate and seeking ways to stimulate demand. Assisting in the development of a
CODEX standard for permeate. Members include:
Tyler Anderson – Hoogwegt Tom Berry – AMPI
Danielle Black – Milk Specialties Richard Bradfield – International Ingredients
Yann Connan – Lactalis Greg Dryer – Saputo
Reed Gibby – Carne I Corp. Keith Gretenhart – Foremost Farms
Keith Grove – Bongards Peter Gutierrez – Agri-Mark (Chair)
Doug King – Davisco Foods Dan LaMarche – Agropur
Vikki Nicholson – USDEC Virginie Saulnier – Saputo
Gabriel Sevilla – Proliant John Sleggs – Empire Cheese
John Tedford – Tedford/Tellico Kevin Thompson – Idaho Milk Products
Bulletin 916 Task Force: Updating Bulletin 916 on milk products
Sue Gates - D.F.A. Greg Chandler – Darigold
Bill Schreiber - O-AT-KA Milk Products Dave Kedzierski - Agri-Mark
Derik Robinson - High Desert Milk Keith Murfield - U.D.A.
Dan Meyer – ADPI (Chair)
Bulletin W-16 Task Force: Updating W-16 bulletin on whey products
Tom Berry, AMPI Mitch Davis, Davisco Foods
Peter Gallagher, Leprino Foods Peter Gutierrez, Agri-Mark
John Haake, Foremost Farms Tom Helm, Grande Cheese
Lisa Hensel, First District Assn. Barney Krueger, Glanbia Foods
Hai Ngo, Hilmar Ingredients Greg Chandler, Darigold
Jeramy Fisher, Hoogwegt Dan Meyer, ADPI (Chair)
Center of Excellence Task Force: Assist in the creation of the ADPI Center of Excellence, which
will be a pool of seasoned industry professionals capable of providing support to members across a wide
range of disciplines.
Barney Krueger - Glanbia Jeremy Riggs - Franklin Farms East
Lee Blakely – COE (Chair) Rick Kaepernick - Hilmar
Richard Bradfield - International Ingredients Dan Meyer - ADPI
Dave Thomas – ADPI
Annual Census Task Force: Help improve the quality and relevance of the annual “Dairy Products
Utilization and Production Trends” publication.
Rylen Dickey – Hilmar Stacey Nikolay - Glanbia
Steve Griffin – ADPI (Chair) Polly Olson – Davisco
Ken Shook – Brewster
Dairy Ingredient Seminar Task Force: Assist in the development of the program for the annual
ADPI Dairy Ingredient Seminar.
Steve Bronfield – Agri-Dairy Greg Dryer – Saputo
Grace Harris – Hilmar Jack Hoops – Land O’Lakes
Scott Marckini – Batory Foods Rich Mollitor – Chicago Dairy
Mark Silvas – Far West Distributors Dan Meyer – ADPI (Chair)
Technical Symposium Task Force: Assist in the development of the program for the biennial ADPI
Technical Symposium in Madison, WI.
Tom Berry – AMPI KJ Burrington – COE
Barney Krueger – Glanbia Allen Sayler – COE
Bjorn Sorensen – COE Dan Meyer – ADPI (Chair)
NPE Task Force: Examining ways to eliminate nonylphenol ethoxylates (NPE) in dairy ingredients and
agreeing on methods of analysis for testing for NPE.
Barney Krueger - Glanbia Amandeep Dhillon – MMPA
Brian Paulson – Davisco Jenny Reuter – Foremost Farms
John Rhoads – DFA Craig Schroeder – COE
Dean Tjornehoj – DairyAmerica Phil Tong – COE
Eveline Wessels – Leprino Chao Wu – Hilmar
Dan Meyer – ADPI (Chair)
Cheese Color Task Force: Address cheese color (Annatto) use and its impact on whey product
quality and acceptability in the global market. Make recommendations on how to deal with this issue.
Barney Krueger – Glanbia (Chair) Christine Bull – Tillamook
Tom Berry – AMPI Joel Denk – Saputo
John Haake – Foremost Farms Kyle Jensen – Hilmar
Tom Rouleau – Darigold Kartik Shah – Davisco
Colostrum Task Force: Develop a new industry standard for Colostrum products
Dan Meyer – ADPI Mark Burton – Immuno-Dynamics
KJ Burrington - COE Dave DeKlyen – La Belle
Tonya Lane – La Belle Andrew Keech – APS Bio-Group
Katie Quinn – James Farrell Angela Walter – Sterling Technology
Whey Protein Phospholipid Concentrate (WPPC) Standard Product Definition Whey Protein Phospholipid Concentrate (WPPC) is a product obtained through the microfiltration of whey which concentrates whey proteins and whey phospholipids. The acidity of WPPC may be adjusted by the addition of safe and suitable pH adjusting ingredients. Composition Classifications
Protein (dry basis)
Fat Ash Total Moisture
WPPC Min. 50% Min. 12% Max. 8% Max. 6% Other Characteristics Microbiological Analysis Scorched Particle Content ≤ 15.0 mg/25 gm Standard Plate Count ≤ 30,000 cfu/g pH 5.70 – 7.50 Coliform ≤ 10 cfu/g Salmonella negative Yeast & Mold ≤ 100 cfu/g Methods of Analysis
Criteria Reference Method Protein Kjeldahl method: AOAC 991.20 (N x 6.38) Fat Mojonnier: AOAC 989.05 Ash Oven at 550C: AOAC 942.05 Total Moisture Vacuum oven: AOAC 925.45 Product Labeling It is recommended that product be identified on the label as: “Whey Protein Phospholipid Concentrate.” Alternate names could include: High Fat Whey Protein Concentrate. Product Applications and Functionality WPPC provides exceptional nutritive value for a wide variety of applications which include: ice-cream, frozen yogurt, beverages, salad dressings, process cheese, protein bars and infant formula.
Storage & Shipping Packaging Product should be stored and shipped in a cool, Multiwall kraft bags with dry environment with temperatures below 80°F polyethylene inner liner or and relative humidities below 65%. Stocks should other suitable closed be rotated and utilized within 1 - 2 yrs. container – i.e., “tote bins,” etc.
Skim Milk Powder (SMP) Standard
Product Definition
Skim Milk Powder (SMP) is the product resulting from the partial removal of fat and water from pasteurized
milk. The fat and/or protein content of the milk may have been adjusted, only to comply with the compositional
requirements below, by the addition and/or withdrawal of milk constituents in such a way as not to alter the whey
protein to casein ratio of the milk being adjusted.
The following milk products are allowed for protein adjustment purposes:
Milk retentate: the product obtained by concentrating milk protein by ultrafiltration of milk, partly
skimmed milk, or skimmed milk;
Milk permeate: the product obtained by removing milk proteins and milkfat from milk, partly
skimmed milk, or skimmed milk by ultrafiltration; and
Lactose
Composition
Classification
Protein
(percent protein in
milk solids-not-fat)*
Fat Moisture
SMP Min. 34% Max. 1.5% Max. 5.0%*
* The moisture content does not include water of crystallization of the lactose, the milk solids-not-fat content
includes the water of crystallization of the lactose.
Other Characteristics Microbiological Analysis
Scorched Particle Content ≤ 15.0 mg Standard Plate Count 30,000 cfu/g
Titratable acidity ≤ .18% Coliform 10 cfu/g
Color white to cream Salmonella negative
Flavor bland, clean Listeria negative
Solubility index <1.0 ml Coagulase positive
Staphylococci <10 cfu/g
Yeast & Mold 100 cfu/g
Methods of Analysis
Criteria Reference Method
Protein ISO 8968-1/IDF 20 part 1
Fat ISO 1736/IDF 9C
Moisture ISO 5537/IDF 26
Product Labeling Product should be labeled as: “Skim Milk Powder”
SMP Labeling Regulatory Compliance Although skim milk powder (SMP) is very similar to nonfat dry milk (NDM), the protein level has been adjusted
and therefore SMP does not comply with the Standard of Identity (SOI) for NDM. This restricts use in products
where the relevant SOI specifies NDM must be used; and when used in other products the ingredient labeling
should identify SMP separately to NDM.
Storage & Shipping Packaging Product should be stored and shipped in a cool, Multiwall kraft bags with
dry environment with temperatures below 80°F polyethylene inner liner or
and relative humidities below 65%. Shelf life is other suitable closed container
24 months when stored under recommended - i.e., “tote bins,” etc.
conditions.
Reference: Codex Alimentarius Standard 207-1999
Whole Milk Powder (WMP) Standard
Product Definition
Whole Milk Powder (WMP) is the product resulting from the partial removal of water from pasteurized milk.
The fat and/or protein content of the milk may have been adjusted, only to comply with the compositional
requirements below, by the addition and/or withdrawal of milk constituents in such a way as not to alter the whey
protein to casein ratio of the milk being adjusted.
The following milk products are allowed for protein adjustment purposes:
Milk retentate: the product obtained by concentrating milk protein by ultrafiltration of milk, partly
skimmed milk, or skimmed milk;
Milk permeate: the product obtained by removing milk proteins and milkfat from milk, partly
skimmed milk, or skimmed milk by ultrafiltration; and
Lactose
Composition
Classification
Protein
(percent protein in
milk solids-not-fat)*
Fat Moisture
WMP Min. 34% Min.. 26%
Max. 42%
Max. 4.5%*
* The moisture content does not include water of crystallization of the lactose, the milk solids-not-fat content
includes the water of crystallization of the lactose.
Other Characteristics Microbiological Analysis
Scorched Particle Content ≤ 15.0 mg Standard Plate Count 30,000 cfu/g
Titratable acidity ≤ .18% Coliform 10 cfu/g
Color white to cream Salmonella negative
Flavor bland, clean Listeria negative
Solubility index <1.0 ml Coagulase positive
Staphylococcus < 10 cfu/g
Yeast & Mold 100 cfu/g
Methods of Analysis
Criteria Reference Method
Protein ISO 8968-1/IDF 20 part 1
Fat ISO 1736/IDF 9C
Moisture ISO 5537/IDF 26
Product Labeling Product should be labeled as: “Whole Milk Powder”
WMP Labeling Regulatory Compliance Whole Milk Powder may be produced with or without protein adjustment. WMP produced without protein
adjustment is equivalent to dry whole milk (DWM) and may be used interchangeably. However WMP produced
with protein adjustment does not comply with the US Standard of Identity (SOI) for DWM, which restricts use of
protein standardized WMP in products where the relevant SOI specifies DWM must be used.
Storage & Shipping Packaging Product should be stored and shipped in a cool, Multiwall kraft bags with
dry environment with temperatures below 80°F polyethylene inner liner or
and relative humidities below 65%. Shelf life other suitable closed
is 24 months when stored under recommended container – i.e., “tote
conditions. bins,” etc.
Reference: Codex Alimentarius Standard 207-1999
Whey Protein Concentrate (WPC) Standard Product Definition Whey Protein Concentrate is obtained by the removal of sufficient non-protein constituents from whey so that the finished dry product contains ≥ 25% protein. It is produced by physical separation techniques such as membrane filtration. The acidity of Whey Protein Concentrate may be adjusted by the addition of safe and suitable pH adjusting ingredients. WPC for human consumption complies with all provisions of the U.S. Federal Food, Drug, and Cosmetic Act. Composition (dry basis) While WPC products could be produced at various protein concentrations greater than 25%, the most common are listed below:
Classifications
Protein
Lactose Fat Ash Total Moisture
WPC-34
Min. 33.5% Typical: 34.0% - 36.0%
Typical: 48.0% – 55.0%
Max. 5.0% Typical: 3.0% - 4.5%
Typical: 6.5% - 8.0%
Max. 6.0% Typical: 3.0% - 5.0%
WPC-80
Min. 79.5% * Typical: 80.0% - 82.0%
Typical: 4.0% -10.0%
Max. 10.0% Typical: 4.0% - 8.0%
Typical: 3.0% - 5.0%
Max. 6.0% Typical: 3.5% - 5.0%
(*) Protein content ≥ 79.5% is reported on a dry basis, all other parameters are reported “as is” Other Characteristics Microbiological Analysis Scorched Particle Content ≤ 15.0 mg Standard Plate Count ≤ 30,000 cfu/g pH 6.0 – 6.7 Coliform ≤ 10 cfu/g Color white to cream Salmonella Negative Flavor bland, clean Listeria Negative Coagulase positive
Staphylococci < 10cfu/g Yeast & Mold ≤ 100 cfu/g Methods of Analysis
Criteria Reference Method Protein AOAC 991.20 (N x 6.38) Lactose ISO 22662/IDF 198 Fat AOAC 989.05 Ash AOAC 942.05 Total Moisture AOAC 925.45
Product Labeling “Whey Protein Concentrate ( _____% protein)”. The percent of protein is declared in 5% increments OR as actual percentage, provided an analysis of the product is supplied. Product Applications and Functionality Dairy products, dry blends, wet blends, prepared dry mixes, soft drinks/special dietary foods, infant foods, bakery products, confections, frozen desserts, process cheese Storage & Shipping Packaging Product should be stored and shipped in a cool, Multiwall kraft bags with dry environment with temperatures below 80°F polyethylene inner liner or and relative humidities below 65%. Stocks should other suitable closed be rotated and utilized within 9 mo - 1 yr. container – i.e., “tote bins,” etc.
Whey Protein Isolate (WPI) Standard Product Definition Whey Protein Isolate (WPI) is obtained by the removal of sufficient non-protein constituents from whey so that the finished dry product contains not less than 90% protein on a dry matter basis. It is produced by membrane filtration processes and/or ion exchange. The acidity of Whey Protein Isolate may be adjusted by the addition of safe and suitable pH adjusting ingredients. WPI for human consumption complies with all provisions of the U.S. Federal Food, Drug, and Cosmetic Act. Composition (dry basis) Classification
Protein
Lactose Fat Ash Total Moisture
WPI Min. 89.5% Typical: 90.0% - 92.0%
Typical: 0.5% - 1.0%
Max. 1.5% Typical: 0.5%-1.0%
Typical: 2.0%-3.0%
Max. 6.0% Typical: 4.0% - 5.0%
Other Characteristics Microbiological Analysis Scorched Particle Content ≤ 15.0 mg Standard Plate Count ≤ 30,000 cfu/g Color cream Coliform ≤ 10 cfu/g Flavor bland, clean Salmonella Negative Listeria Negative Coagulase positive
Staphylococci < 10 cfu/g Yeast & Mold ≤ 100 cfu/g Methods of Analysis Criteria Reference Method Protein AOAC 991.20 Lactose ISO 22662/IDF 198 Fat AOAC 989.05 Ash AOAC 942.05 Moisture AOAC 925.45
Product Labeling “Whey Protein Isolate (_____% protein)”. The percent of protein is declared in 2% increments OR as actual percentage, provided an analysis of the product is supplied. Product Applications General protein supplement, protein functionality for gelation (yogurts, pudding), whipping (topping and filling), water-binding (meat, sausage), and emulsification (ice cream, margarine, mayonnaise) Storage & Shipping Packaging Product should be stored and shipped in a cool, Multiwall kraft bags with dry environment with temperatures below 80°F polyethylene inner liner or and relative humidities below 65%. Stocks should other suitable closed be rotated and utilized within 9 mo – 1 yr. container – i.e., “tote bins,” etc.
Lactose Standard
Product Definition Lactose (Milk Sugar) is a white to creamy white crystalline product, possessing a mildly sweet taste. It may be anhydrous, contain one molecule of water of hydration, or be a mixture of both forms. It is manufactured from whey or permeate by evaporating, crystallizing, refining and then drying the lactose crystals. Lactose for human consumption complies with all provisions of the U.S. Federal Food, Drug, and Cosmetic Act. Composition (dry basis) Classification
Lactose
Protein Ash Total Moisture
Industrial/Fermentation Grade Lactose
98.0% Min.
1.0% Max.
0.45% Max.
6.0%* Max.
Edible (Food Grade) Lactose
99.0% Min.
0.20% Max.
0.30% Max.
6.0%* Max.
Refined Edible Grade Lactose
99.50% Min.
0.15% Max.
0.20% Max.
6.0%* Max.
*Includes water of crystallization Mesh Size Edible Lactose can be ground or milled to produce various mesh sizes. Typical mesh sizes include: Product
Sieve Size (Mesh) % Pass Through
40 mesh 40 Min. 80% 100 mesh 100 Min. 80% 200 mesh 200 Min. 80% Other Characteristics Microbiological Analysis Scorched Particle Content ≤ 15.0 mg/25g Standard Plate Count ≤ 2,500 cfu/g pH (10% solution) 4.5 – 7.5 Coliform ≤ 10 cfu/g Color white to pale yellow Salmonella Negative Flavor slightly sweet Listeria Negative Coagulase positive
Staphylococci < 10 cfu/g
Methods of Analysis Criteria Reference Method Lactose ISO 22662/IDF 198 Protein AOAC 991.20 (N x 6.38) Ash AOAC 942.05 Moisture ISO 5537/IDF 26 Product Labeling Product should be labeled as: “Lactose” or “Milk Sugar” Product Applications Applications include: infant foods, chemicals/pharmaceuticals, dairy products, prepared dry mixes, bakery products, soft drinks/special dietary foods, confections, among others. Storage & Shipping Packaging Product should be stored and shipped in a cool, Multiwall Kraft bags with dry environment with temperatures below 80°F polyethylene inner liner or and relative humidities below 65%. Stocks should other suitable closed be rotated and utilized within 24 months. container – i.e., “tote bins,” etc.
Concentrated Milk Proteins Standard
Product Definition
Concentrated Milk Protein products are obtained by concentrating bovine skim milk through filtration processes so that the finished dry product contains 40% or more protein by weight. Concentrated Milk Protein products may be produced by filtration, dialysis or any other safe and suitable process by which all or part of the lactose and minerals may be removed. Products cannot be produced by combining separately produced casein (caseinate) and whey proteins.
Milk Protein Concentrate (MPC) and Milk Protein Isolate (MPI) are produced by filtration methods (Ultrafiltration and Diafiltration) which capture essentially all the casein and whey proteins contained in the raw material stream in the finished product, resulting in a casein-to-whey protein ratio equivalent to that of the original milk, generally a value of 80:20.
Concentrated Milk Protein products may also be produced using Microfiltration, which will alter the casein-to-whey protein ratio compared to that found in milk. The casein-to-whey protein ratio typically ranges between 82:18 and 95:5 for commercially available products. Where Microfiltration is used, the resulting product is called Microfiltered Milk Protein (MMP) or Micellar Casein (MC).
Composition: MPC and MPI
Several different MPC and MPI products are commercially available, each of which is identified by a number which represents the protein content of the product. These include:
Product Protein % Fat % Lactose % Ash % Moisture % MPC 40 39.5 min 1.25 max 52.0 max 10.0 max 5.0 max
MPC 42 41.5 min 1.25 max 51.0 max 10.0 max 5.0 max
MPC 56 55.5 min 1.50 max 36.0 max 10.0 max 5.0 max
MPC 70 69.5 min 2.50 max 20.0 max 10.0 max 6.0 max
MPC 80 79.5 min 2.50 max 9.0 max 8.0 max 6.0 max
MPC 85 85.0 min* 2.50 max 8.0 max 8.0 max 6.0 max
MPI 89.5 min* 2.50 max 5.0 max 8.0 max 6.0 max
(*) Protein content ≥ 85.0% is reported on a dry basis, all other parameters are reported “as is”
Composition: MMP and MC
Several different MMP and/or MC products are commercially available, each of which is identified by a number which represents the protein content of the product. These include:
Product MMP/MC
Protein % Fat % Lactose % Ash % Moisture %
42 41.5 min 1.25 max 51.0 max 6.0 max 5.0 max
70 69.5 min 2.50 max 16.0 max 8.0 max 6.0 max
80 79.5 min 3.00 max 10.0 max 8.0 max 6.0 max
85 85.0 min* 3.00 max 3.0 max 8.0 max 6.0 max
90 89.5 min* 3.00 max 1.0 max 8.0 max 7.0 max
(*) Protein content over ≥ 85.0% is reported on a dry basis, all other parameters are reported “as is”
Microbiological Standards and Methods of Analysis
Parameter Standard Test Method Standard Plate Count 30,000cfu/g max FDA BAM
Coliform Bacteria 10cfu/g max AOAC 989.10 (Petrifilm)
Salmonella Neg. FDA BAM
Listeria Neg. FDA BAM
Yeast/Mold 100/g max FDA BAM
Moisture See chart AOAC 927.05 (Vacuum Oven)
Milkfat See chart AOAC 989.05 (Mojonnier)
Protein See chart SM 15.132 (Kjeldahl)
Casein See definition TBD
Ash See chart AOAC 900.02 (Gravimetric)
Lactose See chart SM 15.092 (Enzymatic)
Product Labeling
Milk Protein Concentrate (MPC) is labeled to reflect the protein content of the finished product. Product labeled as Milk Protein Isolate (MPI) must contain a minimum of 89.5% protein. Microfiltered Milk Protein (MMP) and Micellar Casein (MC) are labeled to reflect their protein content.
Product Applications and Functionality
MPC, MPI, MMP and/or MC can be used as food ingredients in a variety of food categories. Depending on the food category in which the concentrated milk proteins are used, they can serve as: emulsifiers, flavor enhancers, flavoring agents, formulation aids, humectants, stabilizers and thickeners, texturizers, and sources of high-quality protein.
Storage & Shipping
Product should be stored and shipped in a cool, dry environment with temperatures below 80°F and relative humidity below 65%. Stocks should be rotated and utilized within 1 – 2 years.
Packaging
Multiwall kraft bags with polyethylene inner liner or other suitable closed container – i.e., “tote bins”, etc.
Dairy Permeate Standard
Product Definition
Dairy Permeate is produced by the removal of protein and other solids from milk or whey resulting in a product
with a high concentration of lactose. Removal of the dairy constituents is accomplished by physical separation
techniques such as filtration and diafiltration. The acidity of Dairy Permeate may be adjusted by the addition of
safe and suitable pH adjusting ingredients. Dairy Permeate meets the definition of Dairy Product Solids, which is
the subject of a GRAS notification to the U.S. Food and Drug Administration, and complies with all provisions of
the U.S. Federal Food, Drug, and Cosmetic Act.
Composition
Classifications
Protein
Lactose Fat Ash Moisture
Milk Permeate Typical 3-5%
Min. 2%
Typical 78-88%
Min. 76%
Typical 0-1.0%
Max. 1.5%
Typical 8-11%
Max. 14%
Typical 3-4.5%
Max. 5.0%
Whey Permeate Typical 2–7%
Max. 7%
Typical 76-85%
Min. 76%
Typical 0-1.0%
Max. 1.5%
Typical 8-11%
Max. 14%
Typical 3-4.5%
Max. 5.0%
Other Characteristics Microbiological Analysis
Scorched Particle Content ≤ 15.0 mg Standard Plate Count 30,000/g
pH 5.5 - 6.6 Coliform 10/g
Color white to cream Salmonella negative by test
Flavor bland, clean Listeria negative by test
Yeast & Mold 100/g
Methods of Analysis
Criteria Reference Method
Lactose (anhydrous) HPLC: ISO 22662/IDF 198
Protein Kjeldahl method: AOAC 991.20 (N x 6.38)
Fat Mojonnier: AOAC 989.05
Ash Oven at 550C: AOAC 942.05
Total Moisture Vacuum oven: AOAC 925.45
Product Labeling Product may be identified on the label as: “Milk Permeate” (for permeate derived from milk only), “Whey
Permeate” or “Dairy Product Solids.”
Alternate names could include: Modified Whey, Deproteinized Whey, Dried Whey Product or Dried Whey
Solubles.
Product Applications and Functionality May be used as a direct replacement of other dairy solids in many food applications, including: bakery products
and pizza crust dough; confectionary products; as a replacement for sucrose or corn syrups; to reduce the level of
salt in formulated products; and for fermentation. Milk permeate may also be used for standardizing skim milk or
whole milk powders.
Permeate can be a source of lactose and minerals required for the development of nutritional products for the feed
sector – especially for baby animals.
Storage & Shipping Packaging Product should be stored and shipped in a cool, Multiwall kraft bags with
dry environment with temperatures below 80°F polyethylene inner liner or
and relative humidities below 65%. Stocks should other suitable closed
be rotated and utilized within 9 mo - 1 yr. container – i.e., “tote
bins,” etc.
KELLER AND HECKMAN LLP Serving Business through Law and Science®
MEMORANDUM
TO: David L. Thomas, Chief Executive Officer, American Dairy Products
Institute
FROM: Richard F. Mann
Evangelia C. Pelonis
DATE: June 23, 2015
RE: Regulation of "Natural" Claims in the U.S. and Factors to
Consider for Dairy Ingredients
The purpose of this memorandum is to summarize the regulatory status of “natural”
claims in the U.S., as demonstrated through warning letters issued by the U.S. Food and Drug
Administration (FDA) and federal court cases brought by consumers regarding such claims. We
have also addressed factors that could be considered by dairy ingredient suppliers when
determining how to answer questions from their customers as to the “natural” status of the dairy
ingredients.
I. Legal/Regulatory Background on “Natural” Claims for Foods
A. FDA’s Position on “Natural” Claims
As a preliminary matter, FDA has not established a formal definition for “natural”
claims.1 Nevertheless, FDA has offered several informal interpretations of “natural.” Perhaps
the clearest expression of FDA’s view of the meaning of “natural” is found in the preamble to
the 1993 rule establishing the nutrient content claim regulations, where FDA expressly declined
1 USDA has issued a policy memo on the subject of “natural” (Policy Memo 055), and
discusses “natural” claims in its Food Standards and Labeling Policy Book (August 2005,
pp.116-118), http://www.fsis.usda.gov/OPPDE/larc/Policies/Labeling_Policy_Book_082005.pdf,
but we will not delve into USDA’s position since the Department’s labeling jurisdiction is
limited to meat, poultry and eggs products. We do note that USDA’s guidance permits “natural”
labeling on a case-by-case basis even in cases where a substance has undergone more than
“minimal processing” where it can be demonstrated that the use of such an ingredient would not
significantly change the character of the product to the point that it could no longer be considered
a natural product.
American Dairy Products Institute
June 23, 2015
Page 2
to promulgate a regulation defining “natural,” and, instead, provided informal guidance that
interpreted “natural” to mean that “nothing artificial or synthetic (including all color additives
regardless of source) has been included in, or has been added to, a food that would not normally
be expected to be in the food.”(Emphasis added.)2 FDA has not provided a general definition of
“artificial” or “synthetic.” With regard to colors, FDA regards any added color in a finished food
as “artificial,” regardless of the derivation of the color. FDA has also posted a Q&A that
reiterates their policy on “natural claims.”
“What is the meaning of 'natural' on the label of food?
From a food science perspective, it is difficult to define a food product that is 'natural'
because the food has probably been processed and is no longer the product of the earth.
That said, FDA has not developed a definition for use of the term natural or its
derivatives. However, the agency has not objected to the use of the term if the food does
not contain added color, artificial flavors, or synthetic substances. See
http://www.fda.gov/aboutfda/transparency/basics/ucm214868.htm (emphasis added).
In the absence of a formal definition of “natural” claims, the overriding legal issue is
whether labeling describing a food ingredient as “natural” is “false or misleading” within the
meaning of Section 403(a) of the Food Drug and Cosmetic Act (FD&C Act), 21 U.S.C. § 343(a).
If so, the product is “misbranded,” and its shipment in interstate commerce would be in violation
of the FD&C Act.
There is some additional guidance as to FDA’s position on natural versus artificial in the
food additive regulations. FDA’s flavor labeling regulation distinguishes between “natural
flavors” and “artificial flavors” based primarily upon the source of the flavor and to a lesser
extent based upon the processing that the flavor undergoes. Specifically, 21 C.F.R. §
101.22(a)(1) (“Foods; labeling of spices, flavorings, colorings and chemical preservatives”)
states that an “artificial flavor” is one not derived from a plant,3 meat, fish, poultry, eggs, dairy
products, or fermentation products thereof. A “natural flavor” is defined as a flavoring substance
derived from one of the above plant, meat, fish, poultry, egg or dairy sources, or fermentation
products thereof, via extraction, protein hydrolysis, distillation, roasting, heating or
enzymolysis.4 Since roasting and presumably several other of the above treatments will result in
changes in the chemical composition of the original plant or animal material, the flavor
regulation clearly contemplates that a flavor can be considered and labeled as natural even
though processing that it undergoes results in a different chemical structure than that of the plant
2 58 Fed. Reg. 2302, at 2407 (Jan. 6, 1993).
3 The regulation more specifically describes plant material as “a spice, fruit or fruit juice,
vegetable or vegetable juice, edible yeast, bark, herb, bud, root, or similar plant material.”
4 21 C.F.R. § 101.22(a)(3).
American Dairy Products Institute
June 23, 2015
Page 3
or animal material from which it is derived, such as fermentation of a plant material followed by
enzymolysis.
FDA’s interpretation of “natural” focuses primarily on what the food consists of or is
derived from, and to a lesser extent, on how it is processed. It is noteworthy that the Agency’s
interpretation of “natural” from its 1993 nutrient content claims preamble (cited above) does not
exclude any particular processing or purification techniques. Thus, it may reasonably be argued
that FDA’s position on “natural” claims does not preclude any processing or purification
technique, unless the processing has the effect of incorporating something into the finished food
ingredient that is “artificial” or “synthetic” or would not normally be expected to be in the food.
B. FDA Warning Letters that Address “Natural” Claims
FDA has sent a number of warning letters to companies making “natural” claims that, at
least to some extent, clarify FDA’s informal policy. For example, on November 16, 2011, FDA
sent Alexia Foods a warning letter regarding its Roasted Red Potatoes & Baby Portabella
Mushrooms product. FDA stated that the product may not bear the “All Natural” claim on the
label because the product contains a synthetic chemical preservative, disodium dihydrogen
pyrophosphate.5 In the warning letter, FDA cited to the nutrient content claim preamble from
1993, referenced above. Because the Alexia product contains a synthetic chemical preservative,
preventing the product from bearing a “natural” claim, FDA informed Alexia Foods that the
product is misbranded under the Federal Food, Drug, and Cosmetic Act under Section 403(a)(1),
which states that a food shall be deemed to be misbranded if its labeling is false or misleading in
any particular. Most of FDA’s warning letters take issue with the use of “natural” claims to
describe foods that contain preservatives, artificial colors or other artificial or synthetic food
ingredients.
C. Federal Court Cases that Involve “Natural” Claims
Over the past several years there have been hundreds of consumer class action lawsuits
filed against products making “natural” claims. The complaints often assert that the “natural”,
“all natural” or “100% natural” claims are false or misleading because the food products
otherwise contain artificial or synthetic ingredients or are produced from genetically modified
crops. Plaintiffs base their theories of relief often times on California’s unfair and deceptive
trade practices laws, false advertising, fraud, breach of express or implied warranty, and/or
unjust enrichment. Many times the plaintiffs will assert that the consumers would not reasonably
expect a food product containing synthetically produced ingredients or derived from a
genetically modified food source to qualify as “natural”. Ingredients that have been targeted
include synthetic ingredients (e.g., citric acid, inulin) or synthetically derived ingredients (e.g.,
alkalized cocoa) or ingredients that were sourced from genetically modified plants.
5 See FDA, Warning letter to Alex Dzieduszycki, Alexia Foods (Nov. 16, 2011), available
at, http://www.fda.gov/ICECI/EnforcementActions/WarningLetters/ucm281118.htm.
American Dairy Products Institute
June 23, 2015
Page 4
One reason the litigation continues to mount is likely because the courts have previously
rejected defendant’s preemption arguments regarding “natural” claims.6 The problem has been
that, as discussed in greater detail above, FDA has not formally defined the term “natural” but
relies on the informal guidance cited above and the courts are unwilling to rely on this informal
guidance to support the preemption argument.
II. “Natural” Claims for Dairy Ingredients
We understand that some of your dairy ingredient supplier members are receiving
questions from their customers as to whether the ingredients they are supplying are “natural.” As
explained above, the determination as to whether a food is natural is a tricky analysis particularly
so because FDA’s definition of the term is so vague. Furthermore, the analysis is extremely fact
dependant. We recommend that your ingredient supplier members consider the following factors
when determining whether “natural” claims are appropriate to describe their products:
Does the ingredient contain any artificial or synthetic substances?
o Yes: “natural” claim not appropriate
o No: “natural” claim appropriate
If an artificial/synthetic processing aid is used does it come into contact with the
ingredient or is it removed whether by washing or other means prior to direct
food contact.
o Yes: The analysis of artificial/synthetic processing aids used to make
“natural” ingredients is a difficult analysis because arguably if the
processing aid is present at insignificant levels and has not technical or
functional effect in the ingredient arguably there is a basis to continue to
describe the ingredient as “natural.”
o No: “natural” claim appropriate
Does the ingredient contain any added color, either naturally or synthetically
derived.
o Yes: “natural” claim not appropriate
o No: “natural” claim appropriate
Does the processing of the ingredient result in chemical modification.
6 See Holk v. Snapple Beverage Corp., 575 F.3d 329 (3d Cir. 2009).
American Dairy Products Institute
June 23, 2015
Page 5
o Yes: “natural” claim not appropriate
o No: “natural” claim appropriate
Are any of the ingredients or sub-ingredients or processing aids derived from GM
sources.
o Yes: “natural” claim could be supported but would likely be subject to
legal challenge under state consumer protection laws.
o No: “natural” claim appropriate
Finally, we note that the finished food manufacturer bears the ultimate responsibility for
making truthful and nonmisleading “natural” claims on products that it sells to its consumers.
* * *
We trust that this memorandum provides you with an overview of how “natural” claims
are currently regulated and monitored in the U.S. Please let us know if you have any questions
or if you would like any additional information.
4849-1648-4133, v. 2
White Paper (ADPI Cheese Color Task Force): Annatto usage - an emerging problem
Over the last few months the ADPI Cheese Color task force has gathered, collected and distributed
information on annatto and alternative colors. Two major suppliers of alternative colors have
contributed information to help understand their products better. The goals of the task force were to:
1. Assess the impact of the use of Annatto cheese color on whey product quality and acceptability
in the global market
2. Determine the acceptability of alternative colorants
The following challenges with the use of annatto as a cheese color will be addressed in this paper:
a) Color carry-over into the whey and the need for bleaching
b) The impact of bleaching on whey quality
c) Limitations on the marketability of whey products as ingredients in infant formula and other
products due to the carry-over of annatto and/or compounds from bleaching
Annatto:
Annatto is the yellow/orange pigment used to color cheese. Annatto is an extract of the pericap or fruit
wall of the shrub Bixa orellana and is among the oldest colorant known to man. The shrub is
approximately 2 to 5 meters tall and is native to the American tropics. Many tropical countries such as
Bolivia, Brazil, Ceylon, Dominican Republic, Ecuador, Guyana, India, Jamaica, Mexico, Peru and Surinam
now grow Bixa orellana. The fruit is found in a burr-like pod containing 10 to 50 seeds about the size of
grape seeds. The seeds are covered by a thin layer of soft, sticky bright red pulp. The pulp contains the
annatto pigment. Annatto extracts may be water or oil soluble or suspensions of the pigment in oil. In
general, mechanical friction in conjunction with solvents such as vegetable oil, fats, alkali and alcoholic
solutions are used to leach the color from the pulp. The extract then is further refined depending on the
final application. Precipitation with acids, recrystallization and spray drying in either oil or water soluble
forms are possible processes. The major pigments comprising annatto are the bixin and norbixin in the
cis and trans forms. Cis and trans refers to the isomers forms of norbixin. Isomers are compounds that
have the same molecular formula but different molecular structure. Cis and trans refers to the position
of groups around a double bond. Although isomers have the same chemical formula the compound can
have very different properties depending on whether the reactive groups are in the Cis or trans position.
The major pigment (+80%) of the seed coat is bixin. Stable forms of bixin were first isolated in 1913.
Bixin is soluble in fats and oils at < 0.1% by weight while the potassium or sodium salt of norbixin is
soluble in water. The color of bixin is dependent on pH and ranges from yellow orange to pink at lower
pHs. pH does not affect stability of the color. Bixin is stable at temperatures less than 100°C (212°F)but
relatively unstable at temperatures greater than 125°C (257°F). The pigment also is unstable to light. Cis-
bixin is orange in color and insoluble in vegetable oil. Heating converts cis-bixin into the isomer trans-
bixin which is red and soluble in oil.
Norbixin is formed when the methyl group of bixin is saponified under alkaline conditions. When the
saponified form is placed in an acidic environment the molecule can convert to an insoluble form and
precipitate. Emulsifiers may be used to prevent precipitation. Calcium in hard water or cheese also can
cause precipitation of the pigment. Norbixin also will react with protein to form a peach-red color
oxidation of annatto is very important to the whey industry. Oxidation leads to loss of color by annatto.
Oxygen is required and light acts as a catalyst for the reaction. Higher temperatures, presence of metal
ions, greater intensity of light and greater availability of oxygen increase oxidation of annatto and loss of
color. Contact with air is not considered very effective for oxidizing annatto. The presence of an
antioxidant such as ascorbyl palmitate protects annatto from loss of color in the presence of lig
Carotenoids are known to combine with proteins to stabilize the carotenoid molecule. In addition,
annatto will react with carboxyl groups (-COOH). Because norbixin contains a carboxyl group the
molecule can complex with divalent metal ions. Norbixin then is able to bind with the carboxyl group of
another molecule thereby forming a stable complex. Such a complex can protect norbixin from oxidation
and help retain the original color. While such a reaction may be desired for some products it may be a
problem when color removal by bleaching is desired. Annatto can produce a pink color in cheese. The
pink color may be the result of hydrogen sulfide causing precipitation of norbixin. The pink color may be
protected from further color change by phospholipids and -casein. The pink color is stable to oxygen,
light and pH changes. Treatments to the whey and brand of annatto used are believed to be important
in determining whether the defect occurs.
Although annatto in cheese largely is combined with casein, a portion of the annatto will be present in
the resulting whey. Research has indicated that 18 to 26% of the bixin added to cheese milk is present in
the resulting whey. Lower levels of bixin addition had slightly higher percentages of bixin in the whey
versus higher bixin addition levels. In general, approximately 20% of the bixin added to cheese milk
partitioned into the whey. There is a lack of information on the status of norbixin in whey. Although
norbixin will combine with casein it is not known whether norbixin has affinity for any specific whey
components. Annatto in whey powder is believed to be associated with the whey proteins.
Summary:
• Annatto is an extract prepared from the seeds of the annatto tree (Bixa orellana) and is commonly
used in colored cheddar cheese.
• The annatto pigment (bixin and norbixin) present in cheese color preparations, associates with
casein and gives cheese a desirable yellow/orange color
• Bixin is hydrophobic whereas Norbixin is hydrophilic.
• Water/oil-dispersible annatto colors typically contain both pigments and food-grade emulsifiers.
• These extracts can be used to color food products, such as in cheese, which contain both aqueous
and lipid phases
• Annatto is not stable
• Can produce a pink color during storage
• Annatto also can cause a pink color in secondary products
• Factors such as pH, heat treatment and brand of annatto used contribute to pinking defects
Cheese color (Annatto) use and its impact on whey product quality and acceptability in the
global marketplace:
• Annatto (norbixin) added to cheese milk carries over into fluid whey, imparts undesirable color to
spray dried product
• 18-26%% of norbixin added to cheese milk partitions into the whey stream
• Norbixin plays no direct role in flavor of whey or whey protein
• To minimize the impact of colors in whey products ranging from dried whey to whey protein isolates
bleaching must occur. Bleaching impact several sensory properties in finished products. Flavor
Considerations in Manufacture and Use of Dairy Ingredients always must be a consideration for
ingredient selections
• In the case of whey ingredients, functionality and nutrition are targets and so is flavor
• No flavor – no flavor carry through is the desired target
• Lipid oxidation and sulfur degradation products are the primary sources of off flavors in WPC80 and
WPI
• Where do these compounds come from and how can we minimize? Three flavor sources:
Cheesemake and starter, Whey protein (ingredient) processing, end user processing
• Influence of processing -- several sources. A few include: Storage of fluid product, Storage of dried
product and instantization, Bleaching, Solids and pH
• Bleaching applied to fluid whey or retentate. Two approved chemical agents in U.S. Hydrogen
peroxide (HP) Benzoyl peroxide (BP), Enzymatic bleaching Lactoperoxidase, Commercial peroxidase,
Non-specific oxidation processes
Bleaching:
Hydrogen peroxide and benzoyl peroxide are the only compounds currently allowed in the United States
for bleaching whey. Codex regulations permit the use of both hydrogen and benzoyl peroxide for
bleaching. Previously only hydrogen peroxide was allowed.
Hydrogen peroxide is a clear, colorless liquid having a slightly pungent odor. Food grade hydrogen
peroxide typically has a concentration of 30 to 50%. Hydrogen peroxide is safe and stable under
recommended storage and handling conditions, although hydrogen peroxide will decompose by
exothermic reaction when exposed to soil and other foreign materials. Hydrogen peroxide use as a
bleaching agent is covered by 21CFR 184.1366. Hydrogen peroxide may be used at a rate of <500 ppm (<
0.05%) and is considered effective at all temperatures and total solids levels.
Benzoyl peroxide or dibenzoyl peroxide is a colorless, crystalline solid. Benzoyl peroxide has a faint odor
of benzaldehyde, is insoluble in water. The dry concentrated form of benzoyl peroxide is a highly
reactive dangerous oxidizing material that may spontaneously explode. Commercial products may
contain 15 to 35% benzoyl peroxide. Benzoyl peroxide use is permitted under 21CFR 184.1157 for
removing color in whey both from naturally occurring colored compounds and annatto addition except
in whey products for infant formula. Benzoyl peroxide for bleaching has no use rate limitation other
than that dictated by good manufacturing practices. A typical use rate for benzoyl peroxide is <20 ppm
(< 0.002%). Most effective use conditions are 60°C (140°F) for 15 minutes at pH 6 to 7. Longer holding
times are required if lower temperatures are used. Use of benzoyl peroxide in products for export can
be a concern. Although CODEX regulations recently have changed to permit benzoyl peroxide as a
bleaching agent some countries such as Japan still may be concerned about the use of benzoyl peroxide
in imported products.
Hydrogen peroxide can alter the functionality of whey proteins. The susceptibility of whey proteins to
hydrogen peroxide depends on the specific protein, concentration of hydrogen peroxide, temperature,
time and pH. Hydrogen peroxide is known to inhibit browning in milk systems. Additional information on
the mechanism of browning inhibition is lacking although it is likely hydrogen peroxide alters the ability
of reactive groups on the proteins to interact with sugars thereby limiting the Maillard reaction.
Benzoyl peroxide combined with heat can affect whey proteins. Beta-lactoglobulin, α-lactalbumin,
proteose peptone, serum albumin and immunoglobulin's were altered by benzoyl peroxide addition of
10,000 and 50,000 ppm (1 and 5%). The effect of benzoyl peroxide on casein was less apparent. Very
limited information is available on the effect of benzoyl peroxide on functional properties of whey. The
foaming properties of whey protein isolate produced from sweet whey is not affected by either the
annatto addition or bleaching by benzoyl peroxide although there may be slight differences in non
protein nitrogen, true protein and ash content. Benzoyl peroxide can oxidize milkfat resulting in tallowy,
oxidized flavors. Flavor problems are more apparent with increasing temperature, contact time and
benzoyl peroxide. International concerns center on the use of benzoyl peroxide. Many Asian and
European countries do not like the use of benzoyl peroxide although CODEX recently approved both
hydrogen and benzoyl peroxide for use in bleaching whey. The presence of benzoic acid is an issue for
certain markets. The major decomposition product of benzoyl peroxide is benzoic acid. The safety of
benzoic acid and its derivative benzoates has been widely studied. Benzoates and the related salicylates
are widely distributed in food plants and are present in prunes, tea, cloves, cinnamon and many berries.
Benzoic acid and benzoates have been used as preservatives in food and beverages for approximately
100 years and are among the most commonly used additives.
Originally it was believed that benzoic acid related compounds did not cause adverse reactions when
consumed. It is now apparent that a small percentage of the population is sensitive to such compounds.
People with adverse reactions to benzoic acid related compounds typically have underlying diseases
such as asthma. Asthmatics often are intolerant to aspirin, also known as 2-acetoxybenzoic acid and
Oacetylsalicylic acid, which is very similar in structure to benzoic acid. The mechanism of the intolerance
does not appear to be an allergy type but rather a pseudo-allergic response that relies on enzymes
rather than an immunological reaction. Adverse reactions to benzoic acid related compounds appear to
be relatively rare. An exception would be asthmatics with aspirin intolerance. Reactions generally are
mild with life threatening reactions extremely rare.
Chemical or enzymatic bleaching of whey is a common practice in the industry used to remove the
yellow-orange color in cheese whey.
Whey bleaching reduces the nutritive and functional value of proteins.
Bleaching can also generate off flavors.
Bleaching impact on Flavor:
Hydrogen Peroxide (HP) bleaching has the biggest impact on off-flavor development
Benzoyl Peroxide (BP) bleaching creates a product more similar to no bleach treatments
Bleaching impact on Functionality:
HP bleaching alters heat stability and foam stability
BP bleaching increases foam stability, same results observed with WPC80 and WPI.
A recap of bleaching concerns associated with the use of annatto
• Processing Issues
— Corrosive & hazardous chemical handling
— Difficult to control resulting in variable and inconsistent color
— Negative Impact processing
• Quality Issues
— Negative impact on natural & pure image of Whey Proteins
— Lipid Oxidation and Flavor problems.
— Protein denaturation and functionality impairment
• Regulatory Issues
— Prohibited in infant formula applications
— Permissible by codex.
— Increasingly unacceptable by many local authorities.
• Economic Issues
— Restricted market for whey products
— Equipment fouling
— Capital and operational costs of bleaching
Limitations on the marketability of whey products as ingredients in infant formula and other
products due to the carry-over of annatto and/or compounds from bleaching:
Carry-over principle
• Most countries have food regulations that allow for the inclusion of a food additive in a food, not as
a result of direct addition, but as a result of it being included in an ingredient in the food – this is
called ‘carryover’.
• In general the regulations allow for carryover of an additive as long as it meets certain criteria such
as :
– That the additive does not have a technological function in the food
– That the amount of the additive doesn’t exceed the max level allowed for such a food
– That the level of additive is no more than would be present under good technological
conditions and GMPs.
• The principle relating to the carry-over of food additives into foods (the "Carry-Over Principle")
addresses the presence of additives in food as a result of the use of raw materials or other
ingredients in which these additives are used. The Codex Alimentarius Commission at its 17th
Session (1987) adopted a revised statement of the principle as a Codex Advisory Text. The Text is
printed in its entirety in Codex Alimentarius, Second Edition, Vol. 1 (General Requirements), pp. 85-
88, 1992.
Compliance with the Carry-over Principle
• Other than by direct addition, an additive may be present in a food as a result of carry-over from a
food ingredient, subject to the following conditions:
• The additive is permitted in the raw materials or other ingredients (including food additives)
according to this General Standard;
• The amount of the additive in the raw materials or other ingredients (including food additives) does
not exceed the maximum amount so permitted.
• The food into which the additive is carried over does not contain the food additive in greater
quantity than would be introduced by the use of the ingredients under proper technological
conditions or manufacturing practice; and
• The food additive carried over is present at a level which is nonfunctional, i.e. at a level significantly
less than that normally required to achieve an efficient technological function in its own right.
Non-Compliance with the Carry-Over Principle
• An additive carried over into a particular food in a significant quantity or in an amount sufficient to
perform a technological function in that food as a result of the use of raw materials or other
ingredients in which the additive was used, be treated and regarded as an additive to that food, and
shall be provided for according to the general principles of this Standard
Carry-over Principle exemption not applied to Infant Formula
Some additives may be present in a food because they were contained in one of the ingredients. They
need only be indicated in the list of ingredients if they perform a significant technological function in the
final food. Whether or not the additive performs a technological function in the final product will
depend both on the ingredient containing the additive and the food to which it is added. There is also a
provision in legislation for what is known as reverse carry-over. In this instance, an intermittent
ingredient can contain an additive that it would not normally be permitted to contain, on the basis that
the additive is permitted for use in the final foodstuff and that the intermittent ingredient is used solely
for the final foodstuff. The carry-over principle does not apply to infant formula, follow on formulae or
weaning foods except where specifically provided for in legislation. The warning label for six colors,
often referred to as the ‘Southampton colours’, was included in Article 24 of Regulations 1333/2008 on
food additives. The requirement applies to all products placed on the market from 20th of July 2010
onwards, whereas foods placed on the market or labeled before this date can continue to be marketed
until their best-before date.
Most countries have food regulations that allow for the inclusion of a food additive in a food, not as a
result of direct addition, but as a result of it being included in an ingredient in the food – this is called
‘carryover’. In general the regulations allow for carryover of an additive as long as it meets certain
criteria such as that the additive does not have a technological function in the food, that the amount of
the additive doesn’t exceed the max level allowed for such a food, that the level of additive is no more
than would be present under good technological conditions and GMPs. The principle relating to the
carry-over of food additives into foods (the "Carry-Over Principle") addresses the presence of additives
in food as a result of the use of raw materials or other ingredients in which these additives are used. The
Codex Alimentarius Commission at its 17th Session (1987) adopted a revised statement of the principle
as a Codex Advisory Text. The Text is printed in its entirety in Codex Alimentarius, Second Edition, Vol. 1
(General Requirements), pp. 85-88, 1992
Some infant formula manufacturers in the EU are informing suppliers that the EC Regulation
n.1333/2008 on food additives confirms the prohibition of carry-over of food additives,
including food colorings in foods for infants and young children, except where specifically
provided for, and therefore:
- will not tolerate the presence of annatto in all the sweet whey derivatives they purchase
- for beta-carotene, which is naturally occurring in milk, request a level below the limit of 40 mg
per kg of fat, reflecting a natural concentration in milk
Annatto – Infant Formula Regulations:
US
Annatto is not an approved food additive for Infant formula
All food ingredients in IF need to be GRAS
The carry over principle is allowed in foods
No specific exemption for infant formula.
EMEA
Annatto is not on the list of approved additives
Carryover principle allowed in foods, however it is not allowed for Infant formula
Approved Additives Infant Formula:
China:
Annatto is not an approved food additive for infant formula
The carry over principle is allowed in foods
• No specific exemption for infant formula.
Annatto Alternatives:
Alternative Colors: Beta-Carotene
• Beta carotene is a fat-soluble yellow pigment and antioxidant found in grass. After a cow chews
the cud, beta-carotene dissolves into the animal's fat stores and ends up in fat globules in its
milk.
• Carotenoids are a family of more than 600 pigments found in nature. This includes cheeses,
where the sumptuous oranges and yellows of a mature cheddar or gouda can make the
difference between a consumer buying them, or not…
• We are one of the world’s largest producers of carotenoids, most of which are nature-identical -
which means that their chemical structures and properties cannot be distinguished from the
carotenoids found in plants or animals.
• In cheeses, our carotenoids are natural coloring and stabilizing agents that help the product
retain its appearance while withstanding direct sunlight.
• Beta-carotene is probably the most prominent of carotenoids and aside from imparting
beautiful color into a cheese also plays an important role as a precursor to vitamin A – an
essential vitamin for the body especially when combined with vitamins E and C.
• When combined there is strong evidence to suggest they can prevent degenerative diseases
such as cardiovascular disease or cancer
• Color 1:1 match to traditional annatto
• No effect to cheese composition (Moisture, TS, Fat)
• No impact to cheese flavor
• No bleeding in bi-colored cheese (e.g. Colby Jack)
• Consistent color development regardless of conversion time
• Stability to oxidation – e.g. exposure to lighting
• Stability in packaging (MAP, vacuum, natamycin)
• Color stability over time (cheese matured for >2 years)
• No pinking/pH effects
• Suitability for use in processed cheese
Alternative Colors: Paprika Oleoresin
• Paprika is manufactured from the dried and ground sweet pepper pods of Capsicum annum. The
colorings that impart the characteristic yellow to orange hue of paprika are capsanthin and
capsorubin.
• Paprika, a red spice, imparts flavor and color to food. Paprika, the ground, dried fruit of
Capsicum annuum, has been used as a color and/or spice for centuries as the raw ground
powder in foods such as chili, chorizo, and goulash. Paprika color compounds can also be solvent
extracted to produce paprika oleoresin, a purified form of the coloring compounds.
• The colorants found in paprika and paprika oleoresin are: capsanthin, capsorubin and beta-
carotene, all of which are carotenoids. Paprika and paprika oleoresin are both stable to heat but
sensitive to light and alkaline conditions. The pigments are naturally insoluble in water,
especially the oleoresin. Food coloring manufacturers circumvent this through emulsification,
allowing paprika to be used in both aqueous and lipid products. Food and beverage companies
commonly use the oil soluble form of paprika oleoresin for coloring.
• Paprika is readily available and delivers a range of hues from light yellow to a unique dark
orange. Paprika is very popular in Japan. The European Union requires labeling as a color
additive E160c if the carotenoid content is greater than 7%. Paprika is oil soluble but it is not
water soluble so it must always be emulsified to be water dispersible
• SO-TEC Natural Cheese color (NCC22000) is a patent pending proprietary color formulation that
was developed for use in Cheddar cheese manufacture by Socius Ingredients Inc.
• Blend of red and yellow fat soluble carotenoid colors of paprika and beta-carotene.
• Claimed to be selectively entrapped within the cheese curd.
• Produce color free whey that will eliminate the need for a bleaching treatment of the whey.
• It is an opaque, orange-red liquid that is dispersible in water or milk
• Natural Cheese color is prepared by blending the red and yellow fat soluble carotenoid colors of
paprika and beta-carotene to match the orange color shade of annatto.
• This fat soluble blend is then encapsulated as a fat globule within a caseinate matrix and
dispersed in an aqueous medium
• SO-TEC Natural Cheese color produced cheese with a color similar to annatto colored cheese.
• Whey produced from SO-TEC Natural Cheese color has a color identical to uncolored cheese
whey, and would not require a bleaching treatment.
• SO-TEC Natural Cheese color was resistant to pink discoloration during storage under
fluorescent light
• Unlike annatto, using of BC orange colorant produced uncolored whey stream during cheese
manufacture.
• BC Orange colorant produced cheese with a color similar to annatto colored and no colored
cheeses.
• BC orange cheese colorant was resistant to pink discoloration during storage under fluorescent
light.
Beta Carotene – Infant Formula Regulations
• US
– Approved food additive , CFR 73.95
– Allowed for use in infant formula, CFR 184.1245
– Beta -carotene may be used in infant formula as a source of vitamin A in accordance
with section 412(g) of the Federal Food, Drug, and Cosmetic Act or with regulations
promulgated under section 412(g) of the act.
• EMEA
– Approved Food additive E160(ii)
– Not an approved additive for infant formula
– No carryover allowed in infant formula
• China
– Not an approved Food additive
– Approved for nutrition fortification - GB 14880 2012
– Not an approved additive for infant formula
– Ingredients of Vitamin A shall only include preformed retinol. When calculating or
claiming activities of Vitamin A, no carotenoids ingredient shall be included’.
Alternative Colors
• Clear Whey-Socius
– Identical Color & Shade Match to Annatto – no delayed development
– No Color Transfer to Whey
– Greater Cheese Color Stability than Annatto – does not pink
– Age Stability – more than 3 years
– Fully Compliant with all global food legislative standards including CFR
– Fully Certified – Kosher, Halal, 3rd
party audit, etc.
– Fully Commercial
– Color Stability
• White Whey (DairyMax) -Chr. Hansen
– Color 1:1 match to traditional annatto
– No effect to cheese composition (Moisture, TS, Fat)
– No impact to cheese flavor
– No bleeding in bi-colored cheese (e.g. Colby Jack)
– Consistent color development regardless of conversion time
Yellows Reds
Paprika / Turmeric
Paprika / β - Carotene
Oranges
Apo Carotenal / β - Carotene
Annatto
Paprika
Apo Carotenal
Beta Carotene
Turmeric
– Stability to oxidation – e.g. exposure to lighting
– Stability in packaging (MAP, vacuum, natamycin)
– Color stability over time (cheese matured for >2 years)
– No pinking/pH effects
– Suitability for use in processed cheese
Clear Whey (Socius Ingredients)
Composition & Functionality
• Fat soluble colors, are encapsulated as fat droplets within a matrix and dispersed in an
aqueous medium.
• The specific color pigment(s) are chosen to meet desired color shade.
• Readily dispersed in milk.
• Selectively entrapped within curd.
• 0% Transfer to whey.
Milk Addition & Curd Formation
Whey Removal
0% Transfer
Casein Encapsulated Color Droplet
Occluded Fat Globule
Fused Paracasein Micelles
Aqueous / Whey Medium
SYSTEM LEGEND
RE: Regulatory Issues Associated With Encapsulated Color Additives used In Cheese
Production
(Keller & Heckman)
This responds to your request for our opinion regarding a new process used to color
cheese without impacting the color of whey – a byproduct of the cheese making process – which
may be used by downstream customers in applications such as infant formula. Specifically, you
have asked for our opinion on the regulatory implications of the new process in the United
States, the European Union, and China.
SUMMARY OF OPINION
As discussed in greater detail below, it is our opinion that the new process is defensible in
all three jurisdictions, assuming that the encapsulation materials and other substances used in the
process have an appropriate regulatory status, and residual levels of such substances have no
technical or functional effect in the whey or other whey-derived ingredient. This opinion is
based on our understanding of the facts as provided to us, our examination of the relevant
authorities in all three jurisdictions, and our general experience in this area of the law.
BACKGROUND
As you know, seasonal variations in ingredients and other factors can impact the color of
finished cheese. Accordingly, manufacturers of cheese frequently add color – annatto, beta
carotene, and others – to the cheese so that it meets consumer expectations as to physical
appearance. Indeed, colors are permitted optional ingredients in a number of standardized
cheeses.1 However, this often results in the presence of significant levels of residual colors in
the byproducts of the cheesemaking process, including whey, which itself is further processed
and used in a number of foods, including infant formula. The presence of these colors in infant
formula in particular raises regulatory issues, particularly in the European Union and China.
To address this, the industry has developed two different color additive technologies that
essentially encapsulate the color additive and impart color in the cheese but not in the whey. The
first color additive technology is produced by Socius® under the trade name Clear Whey™.2
Socius describes the color additive as an encapsulated fat soluble color. We understand that the
color additives that are encapsulated are beta-carotene and paprika. Socius has also confirmed
1 See, e.g., the Food and Drug Administration Standard of Identity for Cheddar Cheese (21
CFR §133.113(b)(3), Edam Cheese (21 CFR §133.138(b)(3), and Mozzarella Cheese (21 CFR
§133.155(b)(3).
2 Socius Clear Whey™, http://sociusingredients.com/clearwhey/.
that no residual level of color additive will be transferred to the whey produced as part of the
cheesemaking process.
The second color additive technology is produced by Chr. Hansen under the trade name
DairyMax™ or WhiteWhey™.3 We understand that the Chr. Hansen ingredient is also an
encapsulated color additive technology and that low levels of residual color additive may remain
in the whey. We further understand that DairyMax™ is encapsulated beta carotene. Chr.
Hansen has stated that the residual level of beta carotene in the whey is “comparable to the
naturally occurring levels typically found in milk today.”4
DISCUSSION
1. Regulatory Status of New Color Additives – United States
Based on the information we have regarding the color additives described above, it is our
opinion that there are no regulatory issues associated with the use of these color additives in
cheese as long as the color additives that are encapsulated have an approved regulatory status in
the U.S. and the material used to encapsulate the color additive has an appropriate regulatory
status for use in food. The color additives that will be encapsulated are beta-carotene and
paprika, which are both recognized as approved color additives in the U.S. –beta-carotene at 21
CFR 73.95, paprika at 21 CFR 73.73.340, and paprika oleoresin at 21 CFR 73.345.5 We have no
additional information regarding the encapsulating agents.
3 Chr. Hansen WhiteWhey™, http://www.chr-hansen.com/news-
media/singlenews/whitewheyTM-is-the-right-way.html; described as having an 85-95%
reduction in color transfer to the whey.
4 Chr. Hansen has also stated that infant formula companies view beta-carotene as an
acceptable alternative to annatto or bleaching agents and that Danone Baby Nutrition has set a
limit of beta carotene in sweet whey derivatives (for use in EU) as below the limit of 40 mg per
kg of fat, reflecting a natural concentration in milk and other suppliers, such as Friesland
Campina, which have set the same limit. See email from Dan Meyer to Rick Mann dated May
22, 2015.
5 21 CFR 73.95 (β-carotene), available at,
http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/cfrsearch.cfm?fr=73.95, 21 CFR
73.73.340 (paprika), available at,
http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/cfrsearch.cfm?fr=73.340, and 21 CFR
73.345 (paprika oleoresin), available at,
http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/cfrsearch.cfm?fr=73.345.
2. Regulatory Status in Infant Formula of Whey that is a Byproduct of the
Cheese Making Process that Uses the New Color Additive Technology
A. United States
We see no regulatory issues with the use of the whey that is a byproduct of the cheese
that is produced with the use of the encapsulated color additives in infant formula. We do
recommend confirming that he encapsulating agents used in the new color additive technology
have an approved regulatory status for use in food, especial for the Chr. Hansen color additive
where residual levels end up in the whey product.
B. European Union
As discussed further below, it is our opinion that the color additive technology that results in no
residual level of color additive in the whey (Socius®) would be acceptable in the EU and the color
additive technology that may result in residual levels of color additive in the whey (Chr. Hansen) may be
acceptable assuming: (1) the residual level does not endanger the health of infants; (2) the residual level
must not impart any color to the whey, even unintentionally; (3) the residual level of beta-carotene
must be consistent with the levels that are naturally occurring in cow milk; and (4) there are no
physiochemical differences between the residual beta-carotene and the beta-carotene that is naturally
occurring in cow milk. We also recommend confirming that the encapsulating agents have an
appropriate regulatory status in the EU if they are part of the residual level that ends up in the whey.
First, there is no legal definition of “whey” under EU law. It is included in the definition of a
“milk product” per the COM Regulation,6 but it is not subject to any specific legislation with regard to it
manufacturing process and composition. As a byproduct in the manufacture of cheese, it is well known7
to vary in characteristics with the type of cheese from which it originates. Accordingly, it is our opinion
that the fact that the whey that may contain residual levels of the encapsulated color additives does not
raise any issues with regard to a standard for whey.
To be lawfully used in the manufacturing of infant formula, the addition of the whey must not
result in infant formula that is out of compliance with the specific compositional requirements set in
6 Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17
December 2013 establishing a common organization of the markets in agricultural products and
repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and
(EC) No 1234/2007, OJ L 347, 20.12.2013, p. 671–854.
7 http://www.food.gov.uk/sites/default/files/multimedia/pdfs/milkproductguide.pdf
Directive 2006/141/EC8. In particular, it must not contain any substance in such quantity as to endanger
the health of infants and young children.9
Regarding the use of whey that is a byproduct of the cheese making process that uses beta-
carotene and/or paprika as a color additives, the main regulatory issue relates to the presence of those
colors in the whey due to transfer during the curd formation and straining (whey removal). In short, the
first technology having no residual level transferred in the whey will not raise any regulatory issues and
the second technology may raise some issues depending on the nature, technological properties and
level of the residues that remain in the whey.
The use of beta-carotene (E 160a(i) or (iii)) and paprika (E160c)10
is permitted in ripened orange,
yellow and broken-white cheese like cheddar at quantum satis level11
per the Food Additives Regulation
1333/2008.12
However, it is not permitted in infant formula13
(including by virtue of the carry-over
principle).14
That being said, the residual presence of beta-carotene in whey that results from the
presence of this color additive in the manufacturing of cheese from which it is a byproduct is arguably
unintentional. It must be distinguished from the intentional use of beta-carotene in whey that would be
carried-over in the infant formula. In our opinion, while beta-carotene is not permitted as a food
additive in infant formula per EU law, its unintentional presence in whey, which is used as an ingredient
in infant formula does not suffice to be considered unlawful per the EU Food Additives Regulation. The
8 Commission Directive 2006/141/EC of 22 December 2006 on infant formulae and
follow-on formulae and amending Directive 1999/21/EC Text with EEA relevance, OJ L 401,
30.12.2006, p. 1–33. “Infant formulae” is defined as “foodstuffs intended for particular
nutritional use by infants [children under the age of 12 months] during the first months of life
and satisfying by themselves the nutritional requirements of such infants until the introduction of
appropriate complementary feeding.” See Article 2(c) of Directive 2006/141/EC.
9 Article 4 of Directive 2006/141/EC.
10 We note that the color additives must meet the relevant EU specification. See
Commission Regulation (EU) No 231/2012 of 9 March 2012 laying down specifications for food
additives listed in Annexes II and III to Regulation (EC) No 1333/2008 of the European
Parliament and of the Council Text with EEA relevance, OJ L 83, 22.3.2012, p. 1–295 http://eur-
lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02012R0231-20150409&from=EN
11 ‘quantum satis’ shall mean that no maximum numerical level is specified and substances
shall be used in accordance with good manufacturing practice, at a level not higher than is
necessary to achieve the intended purpose and provided the consumer is not misled.
12 Regulation (EC) No 1333/2008 of the European Parliament and of the Council of 16
December 2008 on food additives (Text with EEA relevance), OJ L 354, 31.12.2008, p. 16–33
13 Article 16 and Annex II to Regulation 1333/2008
14 Article 18(2) of Regulation 1333/2008
critical element for determining if the presence of beta-carotene at residue level is in breach of the EU
Food Additives Regulation is whether it performs a technological function in whey. If it imparts color to
the whey, it may be difficult to rebut the presumption that beta-carotene is an unauthorized color
additive in infant formula carried over from the whey. However, it is our understanding that any
residual color additive would not impart color to the whey, thereby not triggering the restriction under
EU regulations.
We also note that it is our understanding that beta-carotene is naturally occurring at low levels
in cows’ milk and therefore in the whey from which it is derived. Accordingly, there should be plausible
arguments to mitigate the enforcement risk associated with the residual presence of beta-carotene in
whey used in infant formula provided:
1) Such quantity of beta-carotene does not endanger the health of infants, for example, it does not
negatively impact the estimated intake of beta-carotene ingested by infants as a result of the
regular consumptions of foods (restricted diet of infants) in which it occurs naturally.
o Beta-carotene is not authorized for addition to infant formula – by contrast with
processed cereal-based foods and baby foods for infants and young children15
- as a
source of vitamin A owning to the lack of knowledge on the bioconversion of carotenoids
in infants16
.
o Per EFSA17
, the use of beta-carotene as a food colour is not a safety concern, provided
that the estimated combined intake from its use as a food additive and as a food
supplement is not more than the amount likely to be ingested as a result of the regular
consumption of foods in which it occurs naturally (5–10 mg/day). This would ensure that
the exposure to beta-carotene from its use as a food additive and a food supplement
would remain below 15 mg/day, the level of supplemental intake of beta-carotene for
which epidemiological studies did not reveal any increased cancer risk.
2) There is no difference in the physicochemical characteristics between the beta-carotene added
during the manufacturing of cheese and the one naturally occurring in milk.
15
Commission Directive 2006/125/EC of 5 December 2006 on processed cereal-based
foods and baby-foods for infants and young children. OJ L 339 6.12.2006, p. 16.
16 EFSA NDA Panel (EFSA Panel on Dietetic Products, Nutrition and Allergies), 2014.
Scientific Opinion on the essential composition of infant and follow-on formulae. EFSA Journal
2014;12(7):3760, 106 pp. doi:10.2903/j.efsa.2014.3760
http://www.efsa.europa.eu/fr/efsajournal/doc/3760.pdf
17 EFSA Panel on Food Additives and Nutrient Sources added to Food (ANS), 2012a.
Scientific Opinion on the re-evaluation of mixed carotenes (E 160a (i)) and -carotene (E 160a
(ii)) as a food additive. EFSA Journal, 10(3):2593, 67 pp
Since we have no additional information regarding the encapsulating agents, we are not able to
opine on the related regulatory issue. Anticipating that encapsulating agents may be regarded as food
additives under EU law (carriers), their status under the EU Food Additives Regulation needs to be
assessed to determine if their presence in infant formula raises any issues.
C. China
As discussed further below, it is our opinion that as long as the encapsulated color
additives are permitted for use in cheese, the cheese’s byproduct –whey–may be used in infant
formula which may or may not contain naturally occurring levels of color additive.
First, the national food safety standard (GB2760-2014) provides the use of approved food
additives in various food categories. The regulatory status of annatto, beta-carotene and paprika
is as follows:
a) Annatto (INS 160(b)) is permitted as a color additive in ripened cheese and
processed cheese.
b) Beta carotene (INS 160(a)) is permitted for use in unripened cheese, ripened
cheese, processed cheese and cheese analogues.
c) Paprika orange and Paprika red are permitted color additives; however, they are
not approved for use in any cheese categories. Paprika oleoresin (INS160c) is permitted for use
in processed cheese only.
Second, “whey powder” and “whey protein powder”, produced from whey, are regulated
by the national standard of GB 11674-2010. Thus, a whey product which complies with GB
11674-2010 may be sold and used in China.
Third, Article 3.4 of GB2760-2014 permits the carry-over of food additives through a
food ingredient (including food additive) where:
a) the food additive is permitted to be used in the food ingredient;
b) the use level of the food additive in the ingredient shall not exceed the maximum
permissible use level;
c) the ingredient is used under normal manufacturing conditions and the presence
level of the additive in food shall not exceed the level carried over by the ingredient; and
d) the presence level of the additive in food carried over by the ingredient is
obviously lower than the usual level where the additive is directly added in food.
GB2760-2014 does not make a distinction between infant formula and foods intended for
other populations. Accordingly, it is our opinion that, in the absence of a clear regulation, a
food additive may be carried over into infant formula provided the prescribed conditions are met.
We consulted with one of the officials who shepherded the drafting of this standard, GB2760-
2014, who agreed with our view this regard.
Fourth, GB10765-2010 is the food safety national standard for infant formula products.
Article 4.1 of this standard requires that “ingredients shall comply with applicable safety
standard and/or relevant regulations in order to ensure safety of infants, satisfy nutrition needs,
and shall not use any substances that endanger nutrition and health of infants.” Accordingly, if a
whey product is added to infant formula, the whey must comply with the applicable standards,
which in this case would be GB 11674-2010 for whey powder and whey protein powder, as
discussed above. Further, if any food additives are used in the whey, such use also must be
consistent with the food additive standard, GB2760. We understand that here, the color additives
are not being added to the whey products although in some cases some residual levels may end
up in the whey products as a result of their use in the cheese making process.
As set forth in GB2760-2014, beta carotene and some paprikas are authorized for use in
different cheese categories. For example, since beta carotene is approved for use in ripened
cheese, its presence in the byproduct of ripened cheese, i.e., whey, may be justified based upon
the carry-over principle. Subsequently, residual levels of beta carotene in infant formula as a
result of its presence in the whey, an ingredient of infant formula, may also be acceptable. This
would not be the case if the color additive is not permitted in the cheese itself. Accordingly, it is
our opinion that approval of the color additive in a cheese category would be essential to support
its presence at residual levels in whey used in infant formula.
We also suggest continued monitoring of developments in the regulation of infant
formula. Many new requirements and policies for infant formula are driven by international
regulatory practices, consumers and media coverage. While we do not see any regulatory issues
associated with use of whey containing residual levels of colors in infant formula under the
circumstances outlined above, this could be affected by new regulations or new interpretations of
existing regulations.18
3. Ingredient Declaration for the New Color Additive Technology in Cheese –
United States
The color additives that will be encapsulated and used to produce cheese are all approved
color additives that can be used in foods generally in amounts that are consistent with good
manufacturing practices (GMPs) and may be used to color standardized foods if the standard of
identity authorizes the use of added color. As noted above, a number of cheese standards of
identity expressly permit the addition of colors. Accordingly, there are no issues associated with
the use of the color additives beta-carotene or paprika in such standardized cheeses.
18
For example, we note that the industry has long taken the position that enzymes approved
in GB2760 in general food also permit their use in infant formula. However, a recent discussion
on an ingredient in infant formula suggest that officials are considering the need for specific
petitions for enzymes intended for infant formula due to special safety concerns. This signifies
the trend of the Chinese authorities to enhance management of infant formula related issues.
You have also asked how the new color additives would be declared on the cheese label
in the U.S. The color additives used, beta-carotene and paprika, are not subject to certification.
Thus, they may be declared as:
• “artificial color,”
• “artificial color added,”
• “color added,”
• or by an equally informative term that makes clear that a color additive is present in the
food.
The color additives may also be declared as “colored with ____” or “_____ color,” with the
blank filled with the specific name of the color additive.19
Finally, we note that alternative color
additive labeling (e.g., “may contain annatto, paprika, beta-carotene”) is technically not
permitted in the U.S.
19
21 CFR 101.22(k)(2), available at,
http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/cfrsearch.cfm?fr=101.22.
The regulatory citations that support the use of “color added” when β-carotene and paprika
oleoresin are added to a standardized cheese such as a cheddar cheese:
• The relevant provisions are found in the regulations that identify the labeling requirements
for color additives 21 CFR 101.22(k) and the cheddar cheese standard of identity at 21 CFR
133.113. We start first with the cheese standards of identity because they control the
ingredients that may be added to cheese.
• Each cheese standard of identity must be reviewed to determine whether a color lawfully
may be added to the cheese and whether it is subject to any special labeling requirements.
Many of the cheese standards allow for the addition of colors. For example, the standard of
identity for cheddar cheese lists “coloring” as an optional ingredient and then goes on to
require that “[e]ach of the ingredients used in the food shall be declared on the label as
required by the applicable sections of parts 101 and 130 of this chapter.” 21 CFR
133.113(b)(3)(i); 133.113(d). For cheddar cheese, the added color must be declared as
required by the relevant provision in 21 CFR Part 101.
• The ingredient labeling requirements in 21 CFR 101.22 identify the manner in which colors
must be declared in the ingredient statement. The color labeling requirements state in
relevant part: (2) Color additives not subject to certification and not otherwise required by
applicable regulations in part 73 of this chapter to be declared by their respective common
or usual names may be declared as “Artificial Color,” “Artificial Color added,” or “Color
Added” (or by an equally informative term that makes clear that a color additive has been
used in the food). Alternatively, such color additives may be declared as “Colored with
____” or “____ color,” the blank to be filled in with the name of the color additive listed in
the applicable regulation in part 74 of this chapter. When a coloring has been added to
butter, cheese, or ice cream, it need not be declared in the ingredient list unless such
declaration is required by a regulation in part 73 or part 74 of this chapter to ensure safe
conditions of use for the color additive. Voluntary declaration of all colorings added to
butter, cheese, and ice cream, however, is recommended. 21 CFR 101.22(k) (emphasis
added).
• The alternate colors provided are exempt from certification under 21 CFR §§ 73.95 (β-
carotene) and 73.345 (paprika oleoresin). Because these colors are exempt from
certification, they must be labeled in the cheddar cheese consistent with the requirements
in 21 CFR 101.22(k), which allows them to be labeled as “colored with β-carotene and
paprika oleoresin,” “artificial color,” or “color added,” or an equally informative term. Any
of these labeling options is appropriate. Under 21 CFR 101.22(k)(2), the colors, therefore,
can be identified by the term “Color Added.
Additional Regulatory Issues Regarding Annatto Color Use in Cheese (Keller & Heckman):
Regulations in the U.S., China and the EU regarding the use of color additives in cheese which may, in
turn, be present as carryover ingredients in whey and in infant formula (IF).
In summary, for all regions, there is no prescribed method of analysis for annatto in IF; further, the
carryover color would generally have to be declared as an ingredient of the whey if it imparts color but
would be exempt from declaration if it does not have a technical or functional effect in the whey (does
not impart color).
UNITED STATES
1) What are the testing requirements/detection limits for Annatto in IF for US?
There are no specific prescribed methods of detection for annatto in IF in the US. There are
specifications for annatto in the color additive regulation at 21 CFR 73.30 but the regulation does not
discuss a method of detection for annatto. See
http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/CFRSearch.cfm?fr=73.30.
We located one paper that discusses the use of an HPLC method of detection for annatto in whey but
we did not quickly find anything regarding the method of detection in IF. See
http://www.ncbi.nlm.nih.gov/pubmed/24377797. We would be happy to conduct additional research in
the scientific literature to locate methods or follow up with our contacts at various labs to see if they
would suggest a certain method of detection for annatto in an IF matrix.
2) Are there any labeling requirements for whey products with carryover of color (either annatto or
beta carotene / paprika)?
In the US, section 403(i) of the Food, Drug and Cosmetic Act (FD&C Act) requires the label of a food
(including food ingredients such as whey) to list all ingredients. “Color additives” are considered
ingredients that are defined as “a dye, pigment or other substance . . . when added or applied to a food .
. . is capable (alone or through reaction with other substance) or imparting color thereto.” See Section
201(t)(1) of the FD&C Act. The only exemption from labeling declaration of ingredients is for incidental
additives that are “present in a food at insignificant levels and do not have any technical or functional
effect in that food.” See 21 CFR
101.100(a)(3), http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/cfrsearch.cfm?fr=101.100. On
e of the examples of an incidental additive is a substance that has “no technical or functional effect but
are present in a food by reason of having been incorporated into the food as an ingredient of another
food, in which the substance did have a functional or technical effect.” As such, if the color that carries
over to the whey as a result of the cheese making process has no technical or functional effect in the
whey, then the color would be exempt from declaration; however, if the carryover color imparts color to
the whey, it is difficult to take the position that it has no technical or functional effect. Thus, where the
carryover color imparts color to the whey we believe it would be considered an ingredient that must be
declared in the whey.
CHINA
1) What are the testing requirements/detection limits for Annatto in IF for China?
China routinely provides test methods as part of specific food safety standards; however, there does not
appear to be any methods of detection for annatto in IF in China. In the event the government authority
needs test for a substance, based on our previous experience, they usually refer to methods recognized
by international organizations or other food national authorities.
Having said that, the authority is working on a draft test method to determine bixin and norbixin
(annatto in China is also known as bixin and norbixin) in some imported foods by using liquid
chromatography. Cheese is the only dairy product included in the method. Infant formula is not
mentioned. The proposed detection limit in cheese in the draft method is 1 mg/kg. The method of
detection has not yet been published.
We understand that you haven’t inquired about the detection limit for beta carotene, but we thought
you may be interested. China has developed a national standard (GB 5413.35-2010) to determine beta
carotene in infant formula. The detection limit is 2 μg/100g.
2) Are there any labeling requirements for whey products with carryover of color (either annatto or
beta carotene / paprika)?
According to the food labeling standard (GB7718-2014) in China, where a food additive is carried over
into a finished food but does not function in the finished food, the food additive is exempted from
labeling on the package of the finished food, assuming the carry-over principle prescribed in the food
additive standard (GB2760-2014) is also satisfied.
The memo we previously sent to you outlined the criteria of food additive carry-over in GB2760-2014
and discussed an example of beta carotene and ripened cheese. In that example, we took the position
that the presence of residual level of beta carotene in the byproduct of ripened cheese may be justified
in terms of carry-over. Therefore, based on the carryover principle, the label on the whey need not
declare beta carotene based on the above labeling exemption in GB7718-2014.
However, it is important to note that the issue of technical or functional effect in the ingredient must be
addressed as well. We understand that the whey is a byproduct of the ripened cheese and that the
color additive is used to impart color to the cheese but incidentally may impart color to the whey. Per
GB7718-2014, the label of a food shall declare the ingredients used during the manufacturing process of
the food. Here, the color is used indirectly in the manufacture of the whey. If the whey is colored as a
result, we believe that it would be considered an ingredient in the whey, and must be declared. If there
is no color imparted to the whey, or it is removed, then the color would not have to be declared.
EUROPEAN UNION
1) What are the testing requirements/detection limits for Annatto in IF for EU?
While annatto is permitted for use in various food commodities, it is not authorized in IF under EU law
(including by virtue of the carry-over principle). Thus, there is no method of detection for annatto in IF
in the EU.
Under EU law, the specifications for Annatto (E160b) – as set in Regulation 231/2012 – only refer to
spectrometry for identification purpose of two main colored compounds: Bixin (maximum in chloroform
at ca. 502 nm) and Norbixin (maximum in dilute KOH solution at ca. 482 nm).
The availability of methods used for analysis of annatto in the various food matrices is not prescribed by
law. Typically, EU regulators/assessors and national enforcement authorities refer to published methods
and methods recognized/validated internationally to determine the presence of EU-permitted additives
in foods.
Of course, there is also a need for analytical methods capable of detecting very low levels of annatto in
food ingredients and commodities in which it is not permitted but the developments in that respect are
primarily driven by non-compliance records. Unlike spices, sauces, oils, fruit nectars, surimi sticks where
non-permitted annatto was detected many times by national enforcement authorities in the past years,
there is no reported incident on non-permitted annatto in IF. We anticipate that it also results from the
specific nature of IF and the very strict quality systems in place in the baby food industry to ensure
compliance, especially in a proactive manner and through the adoption of a ‘zero tolerance’ approach as
applied to the monitoring of illegal colors. As a direct consequence, we have not been able to identify
any official document with regard to the detection of annatto in IF. That being said, we anticipate that
the available methods for annatto are currently used by the baby food industry to ensure compliance.
The recent investigation report on the availability of methods used for analysis of annatto in the most
relevant food matrices by EFSA and the Joint Research Centre (JRC) gives the following overview of the
state of art of the methods for the analysis of annatto in different foodstuffs:
Published methods for annatto are adequately sensitive for the levels of annatto added for
colouring purposes. HPLC methods must be capable of detecting and quantifying all of the main
bixin and norbixin isomers. However, as for other natural colorants, the access to well
characterised reference materials for the main colouring components is crucial (Scotter, 2011).
Methods for the determination of annatto in a variety of foodstuffs are reasonably well
established and have been validated for a number of different sample types (M.2.2.19,
M.2.2.21). Conditions for the extraction and cleanup are sample dependent and require
refinement to widen the scope of the methods to all foodstuff covered by EU regulations. The
methods reported by Scotter et al. (2002) M.2.2.17, Breithaupt (2004) M.2.2.22, and Noppe et al.
(2009) M.2.2.21 could be considered as a basis for future method development and validation.
We note that the various reviews carried out by MJ Scotter from the UK Food and Environment
Research Agency are commonly referred to by EU regulators and assessors when it comes to methods
for the determination of EU-permitted added natural colors in foods. Of particular interest, the data
evaluated and the specific recommendations made by Scotter to the UK authorities in its 2010 report
gives a good overview of the extraction and analysis conditions for a selection of available methods for
annatto that can be used by EU enforcement authorities. We have extracted the following summary
table from the report (table 4) for the dairy products:
Analytes Applications Typical extraction
conditions
Typical analysis
conditions
Validation LOQ/LOD Reference
Bixin and
norbixin
cis/trans
isomers
Candies,
cheese, butter
and margarine
Sample size 20g.
Extraction / partition
using ethanolic
aqueous ammonia,
pet ether, hexane
and CHCl3.
RP-HPLC with UV-
VIS detection at
500nm
Recoveries
from cheese
92.6%, butter
93.2%, candies
88%.
LOQ ca. 5
ng/g
Lancaster and
Lawrence, 1995
Norbixin and
bixin cis/trans
isomers + other
isomers
165 composite
+ 2 single foods
– cheese,
margarine,
fish, edible
ices, snacks,
bakery wares,
desserts,
compound
foods
Five different
extraction regimes
depending upon
sample type. Either
variant of extraction
/ partition using
ethanolic aqueous
ammonia, hexane
with Celite;
partitioned
CHCl3/HOAc; or
Biphasic partition
CH3CN/hexane.
Antioxidant added
RP-HPLC with
PDA detection at
455nm x 10nm
BW
Single lab
validation with
IHRMs.
Recoveries 61-
96% for 12
different
commodities
spiked at 1.7 –
27.7mg/kg.
LOQ 0.1
mg/kg
Scotter et al., 2002
Bixin and
norbixin
cis/trans
isomers
Cheese, butter
and cream
Sample size 5g.
Extraction with
acetone/HCl (cheese)
or ethanolic aqueous
ammonia, pet ether
(butter and cream)
,centrifugation,
filtration, SPE
RP-HPLC with UV-
VIS detection at
460nm
Recoveries 80-
100%
LOD 0.15
mg/kg
Bareth et al., 2002
2) Are there any labeling requirements for whey products with carryover of color (either annatto or
beta carotene / paprika)?
We note that the use of certain colors is permitted in ripened orange, yellow and broken-white cheese
like cheddar per the Food Additives Regulation 1333/2008. However, color is not permitted in infant
formula (including by virtue of the carry-over principle as defined in the Regulation).
According to the EU Food Labelling Regulation 1129/2011, the list of ingredients shall include all the
ingredients of the food, in descending order of weight, as recorded at the time of their use in the
manufacture of the food.
The term ‘ingredient’ is defined as any substance or product, including flavourings, food additives and
food enzymes, and any constituent of a compound ingredient, used in the manufacture or preparation
of a food and still present in the finished product, even if in an altered form; residues shall not be
considered as ‘ingredients’.(emphasizes added)
The intentional use of color in whey would be regarded as use of a food additive in the manufacture of
whey and therefore as an ingredient of whey that would be ‘carried-over’ in the meaning of the Food
Additive Regulation in IF. However, as further detailed in our draft memorandum, the residual presence
of color in whey that results from the presence of this color additive in the manufacturing of cheese
from which it is a byproduct is arguably unintentional. Although unintentional, if the color has an
impact on the color of the whey it will be difficult to take the position that it is a residue because it has a
technical or function effect on the finished whey and, thus, the color would be considered an ingredient
(that needs to be approved under the Food Additives Regulation) and declared in the whey. If the color
is present at such low levels that it does not impart color to the whey we believe you can take the
position that it is a residue and would not have to be declared.
FDA COLOR REGULATION
“Subject to Certification” “Exempt from Certification”
“Artificial Colors” “Natural or Nature Identical Colors”
Broadly equates to “Artificial Colors” Broadly equates to “Natural Colors”
Term “Artificial” has no legal status as color Term “Natural” has no legal status as color
descriptor descriptor
Includes chemically synthesized Lakes & Dyes Includes Annatto, Beta Carotene & Paprika
“Nature Identical” is a term used commercially
(again term has no legal status) to describe
colors that are synthetic versions of a naturally
occurring color.
Annatto & Paprika only available in “natural
forms”. (Apo Carotenal may be considered a
nature identical form of Paprika)
Beta Carotene is available as both “natural” and
“nature identical / synthetic” form
http://www.fda.gov/ForIndustry/ColorAdditives/ColorAdditiveInventories/ucm115641.htm
Chr Hansen clarification on additional questions:
Apologies for the delay, but we just wanted to confirm with our colleagues in The Netherlands about
their market.
* In the presentations at ADPI a couple questions were presented to Chr. Hansen on Annatto testing
and Beta Carotene testing limits in IF.
* LOD for HPLC methods is dependent on lab, method of extraction and method/column dependent.
Accuracy is influenced by concentration – low levels may give more variability. In our experience with
various labs, the range of detection limit is between 0.001 and 0.03ppm.
* Another question was acceptance of beta carotene as a substitute by the IF companies.
* The IF companies have communicated an acceptance of BC as an acceptable alternative to annatto
or bleaching agents used to remove annatto color from whey.
* Danone Baby Nutrition has set a limit for beta-carotene for their suppliers of sweet whey derivatives
(for use in their products for the EU Infant Milk Formula market) as below the limit of 40 mg per kg of
fat, reflecting a natural concentration in milk.
* FrieslandCampina has set the same limit
* Other suppliers have set similar limits.
* We also understand the Dutch have switched to Beta Carotene. Is that true?
* Yes that is true. Where color is used, the entire Dutch Cheese industry with the exception of one
medium size cheese producer that is not processing the whey has switched to the DairyMAX
WhiteWheyTM solution.
Color Projects Estimated Ingredient
Costs
In both cases a average 10.5% yield was used for comparison purposes.
DairyMax (White Whey)
Ingredient availability
Current cost of color and color bleaching Regular annatto H2O2 Total cost
Cost per Gallon $22.000 $3.948 Usage per vat (Gal) 0.49136 0.36 Cost per vat $10.810 $1.421 $12.23120 Cheese (lbs) per vat 6300 6300 Cost per lb of colored cheese $0.00172 $0.00023 $0.00194
If switched to Beta-Carotene
Beta-Carotene H2O2*** Total cost
Cost per Gallon $49.020 $3.591 Approx usage per vat (Gal) 1.2284 0.00 Cost per vat $60.216 $0.000 $60.21617 Cheese (lbs) per vat 6300 6300 Cost per lb of colored cheese $0.00956 $0.00000 $0.00956 0.0076 .
More expensive than current ingredient costs
Additional Product Information on DairyMax (Chr Hansen) and Clear Whey (Socius
Ingredients) is available upon request
August 26, 2015
Secretary Sylvia Mathews Burwell Director Shaun Donovan
Department of Health and Human Services The Office of Management and Budget
200 Independence Ave., SW 725 17th St., NW
Washington, DC 20201 Washington, DC 20503
Dear Secretary Burwell and Director Donovan:
The below signed organizations thank you for your leadership in ensuring America’s
food supply remains the safest in the world. As you develop the President’s fiscal year (FY) 2017 budget request, we respectfully ask that you request adequate funding for the U.S. Food and Drug Administration’s (FDA) food safety activities as
one of your highest priorities rather than proposing new user fees on consumers and food makers.
We believe that while FDA requires additional funds in FY 2017 in order to support food inspection activities and meet the upcoming implementation deadlines of the
FDA Food Safety Modernization Act (FSMA), the administration should seek all such funding through the Congressional budget and appropriations process rather than
asking for authorization of new regulatory taxes that Congress has repeatedly rejected.
The administration's proposed FY 2016 budget for FDA included a proposal to impose a food facility registration and inspection fee to fund agency activities
related to FSMA. Congress has rightly rejected such fees each and every time they have been proposed by the administration.
As you know, FDA’s budget request for FY 2015, FY 2014, FY 2013 and FY 2012 recommended raising substantial new revenue from new facility registration fees to
help fund the agency’s food safety activities. Congress rejected those proposals. Congress also considered and failed to adopt food facility registration fees during its
consideration and passage of FSMA in 2011. Maintaining the safety of the foods we produce and sell is the highest priority of
food makers and retailers and should be considered a top national priority. Federal food safety programs and inspections conducted by FDA benefit all American
consumers and should be funded through appropriated funds. As consumers continue to cope with a period of prolonged economic recovery and
food makers and retailers struggle with fluctuating commodity prices, the creation of new food taxes or regulatory fees would mean higher costs for food makers and
lead to higher retail food prices for the most vulnerable consumers. As such, we believe imposing new regulatory taxes on food makers is the wrong option for funding food safety programs.
We appreciate your request for new Budget Authority (BA) in your FY 2016 budget
and we strongly encourage you to ensure that FDA has the resources it needs to implement FSMA through a similarly robust BA request in FY 2017. We stand ready
to work with you in support of efforts to ensure we maintain the safest food supply in the world.
Thank you for your leadership and consideration of our views.
Sincerely,
Agribusiness Council of Indiana American Bakers Association
American Council of Independent Laboratories
American Dairy Products Institute American Farm Bureau Federation American Feed Industry Association
American Frozen Food Institute American Fruit and Vegetable
Processors and Growers Coalition American Spice Trade Association Association for Dressings & Sauces
Association of California Egg Farmers California Grain and Feed Association
California League of Food Processors California Seed Association
California Warehouse Association Canned Food Alliance Cheese Importers Association of
America Corn Refiners Association
Flavor & Extract Manufacturers Association Florida Feed Association, Inc.
Food Marketing Institute Fresh Produce Association of the
Americas Frozen Potato Products Institute Global Cold Chain Alliance
Grain and Feed Association of Illinois Grocery Manufacturers Association
Independent Bakers Association Institute of Shortening and Edible Oils International Association of
Refrigerated Warehouses International Bottled Water
Association Juice Products Association Michigan Agri-Business Association
Michigan Bean Shippers Association Midwest Food Processors Association
Minnesota Grain and Feed Association Montana Feed Association
National Association of Manufacturers National Association of Margarine Manufacturers
National Automatic Merchandising Association
National Confectioners Association National Fisheries Institute National Frozen Pizza Institute
National Grain and Feed Association National Grocers Association
National Pasta Association National Renderers Association
National Turkey Federation Nebraska Grain and Feed Association North American Meat Institute
North Dakota Grain Dealers Association
Northwest Food Processors Association Ohio AgriBusiness Association Oklahoma Grain and Feed Association
Pacific Egg and Poultry Association Peanut and Tree Nut Processors
Association Pet Food Institute Produce Marketing Association
Shelf-Stable Food Processors Association
Snack Food Association United Dairymen of Arizona United Egg Producers
United Fresh Produce Association The Vinegar Institute
West Coast Seafood Processors Association Wisconsin Agri-Business Association
cc: Members of the Senate Committee on Appropriations Members of the House Committee on Appropriations
Members of the Senate Health, Education, Labor and Pensions Committee Members of the House Energy and Commerce Committee
ADPI Center of Excellence
ADPI is committed to becoming the world’s premier authority on dairy ingredients. As such, we are
pleased to introduce a network of seasoned dairy industry professionals capable of addressing a wide
range of topics.
The ADPI Center of Excellence (COE) provides an easy and economical way for members to gain access
to a pool of dairy industry experts with competencies in the following areas:
• Product Applications • Regulatory / Legal
• Feed Industry • Quality / Food Safety
• Marketing • Risk Management and Supply Chain Management
• Environmental Compliance • Business Development and Strategy
COE resource professionals, as listed below, are ready and willing to address ADPI member questions or
concerns. Simply identify the person that has the expertise that you require, and make contact with that
resource professional by phone or email. Please identify yourself as an ADPI member, there will be no
cost for this initial consultation. A member may then choose to employ the consultant directly if more
extensive assistance is required.
For additional information, please contact: Dan Meyer, ADPI Director of Technical Services
([email protected] (630) 530-8700 ext. 224)
Disclaimer: Center of Excellence resource professionals are not employees of ADPI, they are
independent consultants. As such, ADPI will not be privy to communications between COE resource
professionals and individual members, and ADPI disclaims any responsibility or liability in connection
with or stemming from such consultations.
Kimberlee (K.J.) Burrington
Dairy Ingredient Applications Program Coordinator
Wisconsin Center for Dairy Research
1605 Linden Drive
Madison, WI 53706
Phone: 608-265-9297
Email: [email protected]
Areas of expertise: Dairy Ingredient Applications
K.J. is the Dairy Ingredient Applications Program Coordinator for the Wisconsin Center for Dairy
Research. She has over 25 years of experience in product development including her past positions at
Ridgeview Industries, the Keebler Company, and as a consultant to the baking industry.
Lee Blakely
Dairy Industry Consultant
241 E Arlen Avenue
Visalia, CA 93277
Phone: 559-730-6046
E-mail: [email protected]
Areas of expertise: Quality Assurance, Processing and Food Safety
Lee has been employed in the dairy industry for 40 years. He gained experience and commissioned the
following operations: cultured products, ESL, cheese, butter, whey powder, WPC and NDM during his 25
years at Dairyman’s Cooperative Creamery Association as VP of Manufacturing. The last 3 years at
DCCA were as VP Sales & Marketing. That experience was followed by VP Quality Assurance, Land O’
Lakes Dairy Foods and then Chief Technical Officer for Cheese & Protein International. Lee retired from
Saputo Cheese & Protein in 2008 and began consulting in the Dairy Industry with emphasis on
processing, quality assurance, environmental risk mitigation in dry processing areas, food safety and
mentoring.
Mary Keough Ledman
Keough Ledman Associates, Inc
DailyDairy Report.
1642 Old Barn Circle
Libertyville, IL 60048
Phone: 847-680-9693
E-mail: [email protected]
Areas of expertise: Dairy Markets Research, Policy Analysis,
Price Forecasting, Risk Management, and Strategic Planning
Mary has over three decades of experience in the dairy industry that includes production, regulatory,
sourcing, forecasting, and policy. Mary’s government service includes: Federal Milk Marketing Order 30,
USDA’s Foreign Agricultural Service and the National Agricultural Statistics Service. Mary's private
sector experience includes: Manager of Dairy Economics for Kraft Foods USA, Manager of Strategic
Planning and Financial reporting for Kraft International in Bremen, Germany, and Director of Materials
Planning for Stella Foods (now Saputo). As Director of Materials Planning, Mary was responsible for
purchasing four billion pounds of producer milk and 20 million pounds of nonfat dry milk powder
annually.
Mike McCully
President
The McCully Group, LLC
1801 West Larchmont, Suite 408
Chicago, IL 60613
Phone: 312-646-0361
Email: [email protected]
Areas of expertise: Risk Management and Strategic Planning
Mike is currently the president and owner of The McCully Group, LLC, a strategic consulting firm
focusing dairy and food companies. He has experience in business analysis, long-term strategic planning,
purchasing strategies, risk management policies and procedures, and M&A, among other supply chain
issues.
Joseph A. O’Donnell, Ph.D.
418 Citadel Dr.
Davis, CA 95616
Phone: 530-574-2900
Email: [email protected]
Areas of expertise: Nutrition and Research – Dairy
Joe entered the food industry in 1979 through research and development with the Quaker Oats company
and then with Kraft Foods. He has served as the Vice President of Product Research for United Dairy
Industry Association. Joe has served as the Director of Science and Technology for the Wisconsin Milk
Marketing Board and Executive Director of the California Dairy Research Foundation for 22 years.
Allen Sayler
Managing Partner
Center for Food Safety & Regulatory Solutions
3511 Powells Crossing Court
Woodbridge, VA 22191
Phone: 571-931-6763
Email: [email protected]
Areas of expertise: Food Safety, HACCP, SQF, BRC, Regulatory
Allen is currently a Managing Partner for the Center for Food Safety and Regulatory Solutions (CFSRS)
headquartered in the Washington, DC area. In his current position he is responsible for Advanced General
Food, Dairy & Juice HACCP training, SQF and BRC program development, as well as, providing GAP
analysis for food processing plants related to food safety, quality, processing efficiency and FDA Food
Safety Modernization Act (FSMA) compliance.
Bjorn Sorensen
Dairy Industry Consultants
Pacific Process U.S.
24442 SE 42nd Place
Issaquah, WA 98029
Phone: 425-281-6520
Email: [email protected]
Areas of expertise: Dairy Technology, Processing and Optimization
Bjorn is owner of Dairy Industry Consultants and an associate engineer with Pacific Process US. He has
over 35 years of experience in dairy product production, plant operations and technology. With his past
positions at HOCO (Arla Foods), Vermont Whey, Golden Cheese, Glanbia Foods, Darigold and Land
O’Lakes, Mr. Sorensen has led the expansion of several plants including green field sites, the
development of new product lines and streamlining manufacturing processes using lean manufacturing
principles.
Dr. Jim Sullivan
Principal
J.E. Sullivan Enterprise, LLC
10030 Green Level Church Rd., Suite 802 #52
Cary, NC 27519
Phone: 919-463-0438
Email: [email protected]
Areas of expertise: Animal Nutrition, Export of Feed Ingredients
& Feed Use of Dairy By-Products
Jim’s work experience has been in the feed ingredient, dairy and food byproduct industries. This included
25 years in the byproduct based feed ingredient business as President of the International Ingredient
Corporation (IIC). He brings over 30 years of knowledge and experience in the feed and dairy industry to
the Center of Excellence. He shares his expertise in animal nutrition, new product development,
maximizing value of dairy by-products, market research, problem solving and exporting of feed
ingredients.
Phillip Tong, Ph.D.
Professor, Dairy Science, Dairy Products Technology Center
California Polytechnic State University
1 Grand Avenue., Bldg. 10, Rm 237
San Luis Obispo, CA 93407
Phone: 805-756-6102
Email: [email protected]
Areas of expertise: Dairy Ingredients Functionality, Membrane
Technology, Dairy Technology and Milk Composition
Phil is Professor of Dairy Science at California Polytechnic State University. He has over 35 years of
experience in conducting research and development in dairy foods science and technology with Cal Poly,
Kraft, Clorox, and Foremost Technical Center. He was instrumental in establishing and growing Cal
Poly’s Dairy Products Technology Center, and served as its Director for over 15 years. His work has
involved a wide range of separation, concentration, purification and thermal processes as it applies to
dairy foods (fermented milks, fluid milks, dairy beverages, frozen desserts, cheese, butter, etc.), dairy
ingredients (MPC, WPC, NFDM, SMP, etc.) and other food systems.
PROPOSED DRAFT CODEX STANDARD FOR
DAIRY PERMEATE POWDERS
(Annotated with changes recommended by IDF)
1. SCOPE This Standard applies to dairy permeate powders, in conformity with the description in
Section 2 of this Standard, intended for further processing and/or as ingredient in other
foods.
2. DESCRIPTION Dairy permeate powders are dried milk products characterized by a high content of
lactose:
a) manufactured from permeates which are obtained by removing, through the use of
membrane filtration, and to the extent practical, milk fat and milk protein, but not
lactose, from milk, whey1, [cream
2 and/or sweet buttermilk], and/or from similar raw
materials, and/or
b) obtained by other processing techniques involving removal of milk proteins , milk fat
but not lactose, from the same raw materials listed under (a) and resulting in an end-
product with the same compositional characteristics composition [include a
reference to 3.3] as if the product was manufactured as described under (a).
[Whey permeate powder is the dairy permeate powder manufactured from whey
permeate. Whey permeate is obtained by removing milk whey proteins, but not lactose,
from whey through the use of membrane filtration.]
Milk permeate powder is the dairy permeate powder manufactured from milk
permeate3. Milk permeate is obtained by removing milk proteins and milk fat, but not
lactose, from milk, partly skimmed milk, skimmed milk or cream through the use of
ultrafiltration.
3. ESSENTIAL COMPOSITION AND QUALITY FACTORS
3.1 Raw materials Dairy permeate powders: Milk permeate, whey permeate, cream permeate, sweet buttermilk
permeate and/or similar lactose-containing milk products
1 Definition of whey, see Standard for Whey Powders (CODEX STAN 289-1995)
2 Definition of cream, see the Standard for Cream and Prepared Creams (CODEX STAN 288-1976) 3 Definition of milk permeate, see Standard for Milk Powders and Cream Powder (CODEX STAN 207-
1999)
Whey permeate powder: Whey permeate
Milk permeate powder: Milk permeate
3.2 Permitted ingredients Safe and suitable processing aids;
Seed lactose4 in the manufacture of pre-crystallized products.
3.3 Composition
Criteria Minimum content Maximum content
Lactose, anhydrous(a) 76.0% (m/m) n.s.
Milk protein(b) n.s. Less than [5.0 or 7.0] %
(m/m)
Milk fat n.s. 1.5% (m/m)
Moisture(c) n.s. [4.0 or 5.0] % (m/m)
Ash n.s. [12.0 or 14.0] % (m/m)
(a) Although the products may contain both anhydrous lactose and lactose monohydrate, the lactose content
is expressed as anhydrous lactose. 100 parts of lactose monohydrate contain 95 parts of anhydrous lactose.
(b) Protein content is 6.38 multiplied by the total Kjeldahl nitrogen determined.
(c) The moisture content does not include the water of crystallization of the lactose.
n.s. = not specified.
In accordance with the provision of section 4.3.3 of the General Standard for the Use of
Dairy Terms (CODEX STAN 206-1999), dairy permeate powders may be modified in
composition to meet the desired end-product composition, for instance, partial
demineralization. However, compositional modifications beyond the minima or maxima
specified above for lactose, milk protein, milk fat, ash and water are not considered to be
in compliance with the Section 4.3.3 of the General Standard for the Use of Dairy Terms.
4 Definition of lactose, see the Standard for Sugars (CODEX STAN 212-1999).
4. FOOD ADDITIVES Alternative 1, if no need of additives is identified during the drafting of this standard:
[The use of any food additives is not technically justified]
Alternative 2, if a need of additives is identified during the drafting of this standard:
[Only those functional classes indicated in the table below may be used for the product
categories specified. Within each class, and where permitted according to the table, only
those individual additives listed may be used and only within the limits specified.
Functional Class Dairy permeate
powder
Milk permeate
powder
Whey permeate
powder
Sequestrants
Anti-caking agents
pH adjustments
X = The use of additives belonging to the class is technologically justified
÷ = The use of additives belonging to the class is not technologically justified
List of individual additives (to be submitted to CCFA for inclusion in the GSFA):
....
....]
5. CONTAMINANTS The products covered by this Standard shall comply with the Maximum Levels for
contaminants that are specified for the product in the General Standard for Contaminants
and Toxins in Food and Feed (CODEX STAN 193-1995).
The milk used in the manufacture of the raw materials covered by this Standard shall
comply with the Maximum Levels for contaminants and toxins specified for milk by the
General Standard for Contaminants and Toxins in Food and Feed (CODEX STAN 193-
1995) and with the maximum residue limits for veterinary drug residues and pesticides
established for milk by the CAC.
6. HYGIENE It is recommended that the product covered by the provisions of this standard be prepared
and handled in accordance with the appropriate sections of the Recommended
International Code of Practice - General Principles of Food Hygiene (CAC/RCP 1-1969),
the Code of Hygienic Practice for Milk and Milk Products (CAC/RCP 57-2004) and
other relevant Codex texts such as Codes of Hygienic Practice and Codes of Practice. The
products should comply with any microbiological criteria established in accordance with
the Principles for the Establishment and Application of Microbiological Criteria for
Foods (CAC/GL 21-1997).
7. LABELLING In addition to the provisions of the General Standard for the Use of Dairy Terms
(CODEX STAN 206-1999) and General Standard for the Labelling of Prepackaged
Foods (CODEX STAN 1-1985), the following specific provisions apply:
7.1 Name of the food The name of the food shall be dairy permeate powder. Products complying with the
relevant descriptions in Section 2 may be named milk permeate powder and whey
permeate powder, respectively.
[Where appropriate in the country of sale, the name may be replaced by the designation
deproteinized ____ powder, the blank being filled with the term dairy, whey or milk,
as appropriate to the nature of the product.]
7.2 Labelling of non-retail containers Information required in Section 7 of this Standard and Sections 4.1 to 4.8 of the General
Standard for the Labelling of Prepackaged Foods (CODEX STAN 1-1985), and, if
necessary, storage instructions, shall be given either on the container or in accompanying
documents, except that the name of the product, lot identification, and the name and
address of the manufacturer or packer shall appear on the container. However, lot
identification, and the name and address of the manufacturer or packer may be replaced
by an identification mark, provided that such a mark is clearly identifiable with the
accompanying documents.
8. METHODS OF SAMPLING AND ANALYSIS See CODEX STAN 234-1999.
The table below are intended to be forwarded to CCMAS for incorporation in STAN 234:
Provisions Method Principle Type
Lactose,
anhydrous
ISO 22662|IDF 198:2007 - Milk and
milk products - Determination of lactose
[equivalent AOAC method]
HPLC (high-performance liquid
chromatography) II
Milkfat
ISO 1736|IDF 009:2008 - Dried milk
and dried milk products - Determination
of fat content
[equivalent AOAC method]
Gravimetry (Röse-Gottlieb) I
Milk protein
ISO 8968-1 | IDF 020-1:2014 - Milk and
milk products - Determination of
nitrogen content - Part 1
[equivalent AOAC method]
Titrimetry, Kjeldahl principle
and crude protein calculation;
Protein content is 6.38 multiplied
by the total Kjeldahl nitrogen
determined
I
Moisture*
ISO 5537|IDF 026:2004 - Dried milk -
Determination of moisture content
[equivalent AOAC method]
Gravimetry (drying at 87°C) I
Ash
To be determined
USP NF <281>
AOAC 930.30
NMKL 1.73
*) Moisture content excluding the crystallized water bound to lactose
126 N. Addison Avenue Phone: (630) 530-8700
Elmhurst, IL 60126 Fax: (630) 530- 8707
September 11, 2015
Via Electronic Mail
Diane D. Lewis
Director, Grading and Standards Division
Dairy Programs
Agricultural Marketing Service/USDA
1400 Independence Ave., SW
Washington, DC 20250
Re: Codex Standard for Whey Permeate Powder
Dear Diane,
We have the following comments on the Proposed Draft Codex Standard for Dairy Permeate Powders,
dated Aug. 7, 2015.
We believe the following issues will need to be resolved as we move forward on developing a Codex
standard for permeate that will be acceptable to the U.S. dairy industry:
1. Description: We need to be sure that methods other than filtration, (ion exchange) are allowed
in the description of dairy permeate powders. This is addressed in the proposed draft in
paragraph 2 (b), but should also be addressed in descriptions for Whey Permeate Powder and
Milk Permeate Powder: (“….through the use of membrane filtration or other processing
techniques.”). We would also not disagree with the proposal from NZ to simplify this section by
eliminating the second sentence in both descriptions (Whey Permeate Powder and Milk
Permeate Powder) since it is redundant to what is described under the general head of Dairy
Permeate Powders.
2. Permitted Ingredients. The proposed standard lists safe and suitable processing aids, but
doesn’t specifically include pH adjustment – which is included in our document. This should be
included in the codex standard, since these ingredients aren’t necessarily “processing aids”. We
suggest the following line item be included under Permitted Ingredients: “Safe and suitable pH
adjusting ingredients”.
3. Composition:
• Protein. It is currently proposed that the maximum content be 7%, however there have
been some discussions at IDF that a 5% maximum is more appropriate (I have included a
draft mark-up of the proposed standard by IDF). We need to push for the 7% max. This
reflects different ways that protein is extracted from the whey (ion exchange) that could
result in higher proteins in permeate.
• Lactose. We do not feel that a maximum for lactose is necessary, since we do not see
any reason why a manufacturer would sell refined lactose as a permeate powder.
• Moisture. It is currently proposed as a maximum of 4.0% water, which “… does not
include the water of crystallization of the lactose”, which is the same as “free
moisture.” The ADPI standard is a maximum of 5% total moisture. The difference is in
the test methods. We should advocate for a maximum of 5% total moisture, but we
could live with the 4% free moisture.
• Ash. 12% vs. our 14% Test methods are different (the codex standard is a 825C furnace
– where our reference AOAC method is a 550C furnace). However, with a lower
minimum lactose spec, we should also be pushing for the higher maximum ash level in
the standard: 14%.
4. Food Additives. We should push to have Acidity Regulators added to this standard as
processing aids. This would include pH adjusting ingredients which US manufacturers use to
adjust the base/acidity of the Permeate. The use of sequestrants should also be allowed for (or
at least not be prohibited) – these are used as a process aid to prevent mineral fouling on
evaporators.
5. Labelling. We need to stress the current accepted name of the product in the U.S., which is
Dairy Product Solids (GRAS Notice 37), and needs to be included as an alternate name. Other
alternate names could be Deproteinized Dairy Powder or Modified Whey. One of the reasons
that Dairy Product Solids is used in the US is because it is a more consumer friendly term
(addressing the concerns expressed by your colleague from India).
6. Test Methods. We would like to see AOAC methods included as alternate methods to the ISO
methods.
Diane, thank you again for all you do for the U.S. dairy industry. We know that you will play an
important role in the development of this Codex standard for permeate, and we stand ready to help you
in any way we can to insure that we end up with a standard that will allow the U.S. to compete on a
level playing field. Please let me know if you have any questions.
Best regards,
David L. Thomas
CEO, American Dairy Products Institute
UPCOMING ADPI CONFERENCES/SEMINARS
o 2015 ADPI Dairy Ingredient Seminar Fess Parker Doubletree, Santa Barbara, CA September 22 & 23
o 2015 Global Cheese Technology Forum Peppermill Resort, Reno, NV October 26 - 28
o 2015 ADPI/CME Dairy Risk Management Seminar CME Group Auditorium, Chicago, IL November 9 - 11
o 2016 Winter Board Meeting Sandpearl Resort, Clearwater Beach, FL February 18 - 19
o 2016 ADPI/ABI Annual Conference Hyatt Regency Chicago April 24 - 26
o 2017 ADPI/ABI Annual Conference Chicago Marriott Downtown April 23 - 25
o 2017 International Whey Conference Sheraton Chicago Hotel & Towers September 17 - 20
o 2018 ADPI/ABI Annual Conference Chicago Marriott Downtown April 29 - May 1
o 2019 ADPI/ABI Annual Conference Chicago Marriott Downtown May 5 - 7
ADPI DAIRY INGREDIENT SEMINAR
126 N. Addison Avenue, Elmhurst, IL 60126 Ph: (630) 530-8700
Email: [email protected] ~ www.adpi.org
September 22 & 23, 2015NEW LOCATION . . .Fess Parker Doubletree
Santa Barbara, CA
• This year’s agenda will feature two outstanding panel discussions from the end-user and broker perspective! For the end-user panel, representa-tives from General Mills, Abbott Nutrition and others will be on-hand to dis-cuss their views on purchasing ingredients. The broker panel discussion will consist of representatives from Louis Dreyfus Commodities, Tedford/Tellico and T.C. Jacoby & Co.
• Additional panel discussions will focus on topics such as Economics, RiskManagement and the International Outlook for the Middle East and Mexico.
• The seminar will also provide overviews on the markets for dairy ingredients including Permeate, Lactose, Dry Whey, Dairy Proteins, Milk Powder/Dry Buttermilk and Cheese.
“Join the buzz as industry leaders discuss the futuremarket opportunities and challenges for dairy ingredients.”
Online Registration and Complete Seminar Information is Available at www.adpi.org
Risk Analysis, Applications and Training The American Dairy Products Institute (ADPI) and CME Group invite you to attend an event specifically designed to help dairy industry participants learn the key concepts involved in managing price risk and volatility in the dairy commodity markets.
The two day seminar on November 10th and 11th will introduce the fundamentals of hedging with dairy futures and options contracts.
Tuesday, November 10th Topics• Weather, Grain and Energy Outlook Panel• Dairy Market Outlook• Establishing a Successful Hedging Program (Panel Discussion) • Walk Through The Process (Panel Discussion)
Real life example using historical market price, structured case study• Hedging Your Hedge: Avoiding Opportunity Losses • Dairy Farmers Risk Management (Panel Discussion)
Wednesday, November 11th Topics• Whey and WPC Risk Management (Panel Discussion)• Cross Hedging for Class I and Class II• Hedging for Exports• Panel of Risk Management Experts - Open Discussion
An Optional Education Session: Fundamentals of Dairy Risk Management will also be offered on Monday, November 9th.
This half-day introductory-level program is designed for those in the dairy industry who are either new to futures markets or who are newly involved in their firm’s management operations.
WHO SHOULD ATTEND “FUNDAMENTALS OF DAIRY RISK MANAGEMENT?”• Those who have never used futures or options & want to acquire basic knowledge.• Those who want a refresher course on the basics.• New staff involved with or impacted by price risk management decisions.• New purchasing team members, finance and accounting department staff. Executive
management and owners with bottom line responsibility.
Details WHEN:November 9, 10 & 11, 2015 WHERE:CME Group Auditorium20 South Wacker DriveChicago, IL 60606 REGISTER:Online at www.adpi.org REGISTRATION FEES:
Early Bird Rates (available through Sept. 30)ADPI Member Rate: $395Non-Member Rate: $495 Standard Rates (October 1st - Nov. 8)ADPI Member Rate: $445Non-Member Rate: $545
Optional Education Session Additional $50 for both ADPI members and non-members Hotel:La Quinta Inn & SuitesOne South FranklinChicago, IL 60606 RESERVATIONS:312-558-1020
126 N. Addison Avenue, Elmhurst, IL 60126 ~ Ph: (630) 530-8700 ~ Email: [email protected]
Online registration & additional seminar
information at www.adpi.org
The cost to attend this half-day session is an additional $50 for ADPI members and non-members.
ADPI MEMBERSHIP LIST
ORGANIZTN CITY STATE COUNTRYCLASS
ACSON Corporation Scottsdale AZA
Advance Milk Commodities Chino CAA
Advanced Process Technologies, Inc. Cokato MNA
AgMotion Dairy Minneapolis MNA
Agri-Dairy Products, Inc. Purchase NYA
Alamfoods Inc. Surrey BC CANADAA
All American Dairy Products, Inc. Malvern PAA
American Feed Indsutry Association Arlington VAA
Bardo Custom Blending, Inc. Elroy WIA
Barry Callebaut USA Chicago ILA
Bassett & Walker International, Inc. Toronto ON CANADAA
Batory Foods, Inc. Des Plaines ILA
Berkshire Dairy & Food Products, LLC Wyomissing PAA
Blue Cow Dairy, LLC Sinking Spring PAA
Caloris Engineering Easton MDA
Carlyn Dairy Products, Inc. Mundelein ILA
CEM Corporation Matthews NCA
Center for Dairy Research Madison WIA
Cereal Byproducts Company Mt. Prospect ILA
Ceres Dairy Risk Management LLC Sun Valley IDA
Chicago Dairy Corporation Lake Forest ILA
Chr. Hansen Inc. Milwaukee WIA
Clofine Dairy & Food Products, Inc. Linwood NJA
CME Group Chicago ILA
CoBank Washington DCA
Complete Filtration Resources, Inc. Marshfield WIA
Cream Limited Auckland NEW ZEALANDA
Daily Dairy Report Libertyville ILA
Dairy Australia Melbourne Victoria AUSTRALIAA
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ORGANIZTN CITY STATE COUNTRYCLASS
Dairy.com Frisco TXA
Dana Foods, Inc. Hillsboro WIA
DCI, Inc. St. Cloud MNA
DF Ingredients Washington MOA
Diversified Ingredients St. Louis MOA
Ecolab, Inc. St. Paul MNA
Elanco Greenfield INA
Elite Sales & Marketing Inc. Madison WIA
Engender Foods Wild Rose WIA
Exothermics/Eclipse Toledo OHA
Fairway Dairy & Ingredients Lakeville MNA
Far West Distributors, Inc. Visalia CAA
Farbest Brands Louisville KYA
Fonterra (USA) Inc. Rosemont ILA
Foodtec Canada Inc. Oakville ON CANADAA
Gavilon Ingredients, LLC Omaha NEA
GEA Process Engineering Inc. Hudson WIA
GEA Westfalia Separator, Inc. Stillwater MNA
Gerber California, Inc. La Jolla CAA
Gibby Group Burley IDA
Global Dairy Network (2012) LLC Lemoyne PAA
Global Dairy Platform Rosemont ILA
Grain Millers Dairy Products, Inc. Eden Prairie MNA
Graphic Packaging International Carol Stream ILA
Great Lakes Milk Products, Inc. Melrose Park ILA
HB Trading LLC Wayne PAA
Heartland Farms Dairy & Food Products St. Louis MOA
HighGround Dairy Chicago ILA
Horizon Sales of Minnesota Brooklyn Park MNA
Hunter, Walton & Co., Inc. Piscataway NJA
Hydranautics Oceanside CAA
Hydrite Chemical Co. Brookfield WIA
Wednesday, September 09, 2015 Page 2 of 7
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ORGANIZTN CITY STATE COUNTRYCLASS
Indian River Transport Winter Haven FLA
Ingredia, Inc. Wapakoneta OHA
International Association for Food Protectio Des Moines IAA
International Dairy Foods Association Washington DCA
INTL FCStone Inc. Chicago ILA
Ivarson Inc. Glendale WIA
J.M. Swank Company North Liberty IAA
KDY International, Inc. Sugarland TXA
Keller & Heckman LLP Washington DCA
Keller Technologies, Inc. Mantorville MNA
Kerry Ingredients & Flavours Beloit WIA
Kincannon & Reed Executive Search Wooster OHA
Kline Process Systems Wyomissing PAA
Lacto USA Inc. Torrance CAA
Lactoland US, Inc. Knoxville TNA
Lead USA Global Ingredients Monterey Park CAA
Cordova TNLouis Dreyfus Commodities - Ecoval Dairy
Maple Island, Inc. North St. Paul MNA
Marriott Walker Corporation Birmingham MIA
Marron Foods Harrison NYA
MB Financial Bank Rosemont ILA
MCT Dairies, Inc. Millburn NJA
Membrane System Specialists, Inc. Wisconsin Rapids WIA
Mercator, Inc. Englewood Cliffs NJA
Mitsubishi International Corporation Los Angeles CAA
Mitsui & Co. (USA), Inc. Los Angeles CAA
MOCON, Inc. Minneapolis MNA
Nelson-Jameson, Inc. Marshfield WIA
Nissei Kyoeki Co., Ltd. Chiyoda-ku Tokyo JAPANA
North Central Companies, Inc. Minnetonka MNA
Olam Americas, Inc. Summit NJA
Osage Food Products Washington MOA
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ORGANIZTN CITY STATE COUNTRYCLASS
Pacific Cheese Co., Inc. Hayward CAA
Packerland Whey Products Luxemburg WIA
Pall Corporation Port Washington NYA
Paras Dairy LLC Chicago ILA
Parker dominck hunter Process Filtration Oxnard CAA
Pentair, Inc. Delavan WIA
Powder-Solutions Group Chanhassen MNA
ProSpect Analytical Technology, Inc. Plymouth MNA
PS International, Ltd. Chapel Hill NCA
RELCO Willmar MNA
Rice Dairy LLC Chicago ILA
Rich Dairy Products, Inc. Marshfield MAA
Ronald A. Chisholm (U.S.A.), Inc. Linden MIA
Roosevelt Dairy Trade, Inc. West Chester PAA
Russell Finex Inc. Pineville NCA
S J Global Group Inc. Monterey Park CAA
Separators, Inc. Indianapolis INA
Sloan Valley Dairies Ltd. Victoria BC CANADAA
Socius Ingredients Evanston ILA
Spraying Systems Co. Wheaton ILA
Tetra Pak Inc. Winsted MNA
The Charles Stube Company, Inc. Manlius NYA
The Cheese Reporter Madison WIA
The Milky Whey Inc. Missoula MTA
Tosca Ltd. Atlanta GAA
U.S. Dairy Export Council Arlington VAA
Vitusa Dairy Corp. Englewood Cliffs NJA
Wisconsin Dairy Products Assn. Middleton WIA
Wisconsin Milk Marketing Board Madison WIA
WOW Logistics Company Appleton WIA
Franklin Farms East, Inc. Asbury NJAP
Mead Johnson Nutrition Evansville INAP
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ORGANIZTN CITY STATE COUNTRYCLASS
Carbery Co Cork IRELANDI
FrieslandCampina Ingredients Paramus NJI
MGL mbH Lauingen GERMANYI
Milligans Food Group Ltd. Oamaru NEW ZEALANDI
Modern Dairies Limited Chandigarh INDIAI
Murray Goulburn Coop. Ltd. Southbank VIC AUSTRALIAI
Sachsenmilch Leppersdorf GmbH Leppersdorf GERMANYI
Tatua Co-operative Dairy Co. Ltd. Morrinsville NEW ZEALANDI
Uelzena eG Uelzen GERMANYI
Vitalus Nutrition Inc. Abbotsford BC CANADAI
CAL Poly State Univ./DPTC San Luis Obispo CAIND
CFSRS Woodbridge VAIND
Dairy Industry Consultants Issaquah WAIND
JE Sullivan Enterprise Cary NCIND
Joe O'Donnell Davis CAIND
Lee Blakely Consulting Visalia CAIND
Pejsa Enterprises Tiffin IAIND
Process Systems Consulting Inc. Iowa City IAIND
The McCully Group, LLC Chicago ILIND
Wisconsin Center for Dairy Research Madison WIIND
Agri-Mark, Inc. Lawrence MAP
Agropur, inc. USA Appleton WIP
APS BioGroup, LLC Phoenix AZP
Arla Foods Ingredients, Inc. Basking Ridge NJP
Associated Milk Producers, Inc. New Ulm MNP
Bluegrass Dairy & Food LLC Glasgow KYP
Bongards' Creameries Bongards MNP
Brewster Cheese Company Brewster OHP
Cayuga Milk Ingredients Auburn NYP
Dairy Farmers of America, Inc. Kansas City MOP
Darigold, Inc. Seattle WAP
Davisco Foods a Business unit of Agropur Eden Prairie MNP
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ORGANIZTN CITY STATE COUNTRYCLASS
Ellsworth Coop. Creamery Ellsworth WIP
Farmers Cooperative Creamery McMinnville ORP
First District Association Litchfield MNP
Foremost Farms USA Baraboo WIP
Glanbia Nutritionals, Inc. Fitchburg WIP
Gossner Foods Inc. Logan UTP
Grande Cheese Company Lomira WIP
Great Lakes Cheese Co., Inc. Cuba NYP
High Desert Milk, Inc. Burley IDP
Hilmar Ingredients Hilmar CAP
Idaho Milk Products Jerome IDP
Immuno-Dynamics, Inc. Fennimore WIP
International Ingredient Corporation Fenton MOP
J.M. Smucker Company Dublin OHP
Kansas Dairy Ingredients Kansas City MOP
La Belle Associates, Inc. Bellingham WAP
Lactalis Ingredients Buffalo NYP
Land O' Lakes, Inc. St. Paul MNP
Leprino Foods Company Denver COP
Lynn Protein Granton WIP
MD & VA Milk Producers Coop. Assn. Reston VAP
Merrick Animal Nutrition, Inc. Reno NVP
Michigan Milk Producers Assn. Novi MIP
Milk Specialties Global Eden Prairie MNP
Muscoda Protein Products Muscoda WIP
Nestle USA, Inc. Solon OHP
Nutegrity USA Batavia ILP
O-AT-KA Milk Products Coop., Inc. Batavia NYP
Proliant Dairy Ingredients Ankeny IAP
Reilly Dairy & Food Company Tampa FLP
Saputo Cheese USA Inc. Lincolnshire ILP
SensoryEffects Powder Systems Defiance OHP
Wednesday, September 09, 2015 Page 6 of 7
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ORGANIZTN CITY STATE COUNTRYCLASS
St. Albans Coop. Creamery, Inc. St. Albans VTP
Sterling Technology Inc. Brookings SDP
Swiss Valley Farms Cooperative Davenport IAP
Tillamook County Creamery Association Tillamook ORP
United Dairymen of Arizona Tempe AZP
Valley Queen Cheese Co. Milbank SDP
VernDale Products, Inc. Detroit MIP
Wapsie Valley Creamery, Inc. Independence IAP
DairyAmerica, Inc. Fresno CAT
Hoogwegt U.S., Inc. Lake Forest ILT
James Farrell & Co. Seattle WAT
T.C. Jacoby & Company Inc. St. Louis MOT
Tedford/Tellico, Inc. Knoxville TNT
United International LLC Wentzville MOT
Abbott Laboratories Columbus OHU
All American Foods, Inc. Mankato MNU
Amlat LLC Madison WIU
Commercial Creamery Company Spokane WAU
Dannon White Plains NYU
Galloway Company Neenah WIU
JBS United, Inc. Sheridan INU
Mars Chocolate North America Hackettstown NJU
Milk Products, Inc. Chilton WIU
PBM Nutritionals, LLC Georgia VTU
Schreiber Foods Inc. Green Bay WIU
The Hershey Company Hershey PAU
Wells Enterprises, Inc. Le Mars IAU
World Grocer Turlock CAU
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Scott Meister, President of Muscoda Protein Products, LLP (MPP). MPP was founded by Scott’s father in 1981 as a regional processor of cheese whey into WPC and Lactose. Scott is also the President of Meister Cheese Company LLC. Under his leadership, the company has grown from a small producer of commodity cheese to a nationally recognized leader in the production of specialty and artisanal cheese serving private label retail and foodservice. The Meister dairy plants have seen significant expansions in size, employment and output in recent years, and continuous growth is planned.
A past board member and officer of the Wisconsin Cheese Makers Association, Meister is active in the Muscoda community as a member of the Chamber of Commerce, a Little League and Youth Football coach, and a member of St. John’s parish.
A graduate of Riverdale High School in Muscoda, Meister attended UW-Madison and UW-LaCrosse before returning to the family business. Scott has been married 25 years to his wife Rhonda, they have two children, Alex, 20, and Amanda, 17. Scott is a twin-engine instrument rated private pilot, he enjoys flying for business, and pleasure and also enjoys hunting and fishing in his spare time.
Tara D Russell joined Idaho Milk Products in 2010 as
the Director of Sales and Marketing where she
oversees the strategy and implementation for the
commercial side of the business. Prior to joining
Idaho Milk Products, she was the Director of
Marketing and Business Development for the Food
and Nutrition Units of DMV International, a division
of Friesland Campina. With over 20-years experience
in the food industry, Ms. Russell has managed brand
marketing and new product development groups for consumer products brands including
Healthy Choice Cheese (ConAgra), Sundown and MetRx (Numico), and Nature’s Resource
(Pharmavite). She brings a unique cross-functional background to the position, having begun
her career in operations with Archer Daniels Midland and ConAgra. Ms Russell has a B.S.
degree with honors in Agricultural Engineering from the University of Wisconsin, Madison
and an M.B.A. with honors from Keller Graduate School of Management.
As the Senior Vice President (SVP) of Global Business Development, Kevin Burke is responsible for marketing, sales, customer service, menu innovation, new business development, and international operations for Leprino Foods. He oversees the worldwide strategic go-to-market vision for the company. Kevin also is a board member of Leprino Foods’ joint venture Glanbia Cheese PLC in Manchester, England, and Leprino Foods’ Asian subsidiary in Singapore. Prior to his current role, Mr. Burke was the SVP of Marketing, Sales and Customer Service. A Leprino Foods senior executive since 2008, he has a wealth of sales and market development experience.
Previously, Mr. Burke was employed by Procter & Gamble (P&G) where he held a variety of leadership positions in sales and marketing. At various times in his career at P&G, he was responsible for managing several flagship brands including Tide Detergent, Bounty Paper Towels, and Pert Plus Shampoo. Mr. Burke holds an undergraduate degree in management from Bradley University. He and his wife, along with their two children, reside in Centennial, Colorado.
Mike McCully owns The McCully Group, LLC, a strategic consulting firm that provides supply chain solutions to dairy and food companies. The McCully Group has worked with many of the top dairy companies in North America as well as major multi-national food companies. Client projects include business analysis, procurement strategy, economic forecasting, and commodity risk management. In addition, The McCully Group has provided subject matter expertise for global consulting companies, private equity firms, and Wall Street investment banks and has spoken at numerous conferences around the U.S. and in Asia. Prior to forming The McCully Group, Mike worked at Kraft Foods for over 15 years where he held management roles in dairy, meat, and grain purchasing. Over his career in dairy procurement, Mike had responsibility for sourcing most of the dairy commodities Kraft buys in North America, as well as economic analysis, commodity risk management, dairy policy, and industry relations. Additionally, while at the Oscar Mayer division of Kraft, he was responsible for meat commodity risk management and corn purchasing. Throughout his career at Kraft, Mike provided leadership on dairy industry issues. He has served on the Board of Directors for International Dairy Foods Association’s Milk Industry Foundation and the Dairy Institute of California. He has been a member of IDFA’s Legislative Oversight Committee, IDFA’s Farm Bill Committee, the National Cheese Institute’s Economic Policy and Legislative Committee, and the California Dairy Institute’s Producer Relations committee. He also has served on numerous dairy industry task forces involving dairy policy and price volatility issues. Mike grew up on a grain and beef cattle farm in north central Illinois and remains active in the beef cattle industry through his partnership in purebred Angus and Hereford cattle operations. He has a Bachelor’s degree in Agriculture from Western Illinois University and a Master’s degree in Agricultural Economics from the University of Illinois. Before joining Kraft, Mike managed a grain elevator in western Illinois and worked in specialty grain export. Mike McCully, President Phone - 312-646-0361 Email - [email protected] Website – www.themccullygroup.com
Strategic Planning ���� Organization Development ���� Board and Team Development 6385 Old Shady Oak Road, Suite 260, Minneapolis, MN 55344 Tel 952.942.2922 Toll 800.747.7469 Fax 952.942.2927
Proutyproject.com
Mike Felmlee works closely with management teams, boards of directors, and staff groups throughout the nation to facilitate strategic planning, leadership development, and executive retreats. He joined the Prouty Project as a partner in 2000, and was named CEO in 2005.
Mike has 30 years of financial and operational management experience in the healthcare, manufacturing, and public accounting industries. Prior to joining the Prouty Project, he spent 12 years as a senior financial leader at Mayo Clinic Rochester, three years as a financial controller for a $100M manufacturing company, and eight years as a CPA with PricewaterhouseCoopers in its Minneapolis and New York City offices. He graduated with honors from Winona State University, earning a B.S. in Accounting.
Mike currently serves on the Board of Directors for the Business Advisory Board for Winona State University’s College of Business. He is also Chair of the Board for Big Brothers Big Sisters of the Greater Twin Cities, and is an active member of Legatus.
From the Renaissance to the Ringling Brothers: Lessons in strategic thinking from some of the greatest artists of our time
What makes a good strategy? In today’s hyper-evolving enterprise, the demands to stay ahead of the proverbial curve are more important than ever. While we all spend copious amounts of time discussing strategy, we’re not always able to do so in a way that shifts our organization’s thinking beyond the status quo. Inspired by the same principles that nurtured the explosion of art and ideas known as the Renaissance, Mike Felmlee will demonstrate how the best strategic thinking is more art than science. In this action-packed, interactive, 90-minute session, you will learn how to bring together disparate ideas and expertise to make your strategic thinking both more fun and effective. And you will emerge inspired to think beyond the daily grind with the tools needed to create a more collaborative and innovative work environment.
Mike Felmlee CEO
952.229.8962
