World Dairy Expo contest auction raises $39,160MADISON, Wis. — The ninth annual World Dairy Expo Cham-pionship Dairy Product Contest auction — sponsored by the Wisconsin Dairy Products Association (WDPA) and held here Tuesday during the World Dairy Expo — raised $39,160.
“This year’s contest was, once again, extremely successful,” says Brad Legreid, executive director of WDPA. “We had a record number of entries (705), more product classes and greater overall participation than ever before.”
A portion of the auction proceeds will be used to fund the Dr. Robert L. Bradley Scholarship, which will be awarded annually to a deserving student pursuing a career in the dairy industry. Proceeds also will be used to defray contest expenses.
Product donations were made to the Madison Area Technical College Culinary Arts School, University of Wisconsin Food Science
More proposals emerge in dairy policy reform debate WASHINGTON — New farm bill policy introduced in Congress as well as a set of proposals by a top farm group continued to fuel the dairy reform debate this week.
Two Republican lawmakers from Indiana — Sen. Dick Lugar and Rep. Marlin Stutzman — this week introduced the Rural Economic Farm and Ranch Sustainability and Hunger Act (REFRESH), which they say would save taxpayers more than $40 billion by reforming farm programs, cutting $16 billion, as well as updating and streamlin-ing conservation programs for a savings of $11.3 billion, and closing nutrition program eligibility loopholes to save $13.9 billion.
The lawmakers note roughly two-thirds of the savings would come from farm and conservation programs, and a third from nutrition programs, which represent three-fourths of USDA’s budget.
“This bill provides good farm and nutrition policy and saves $40 billion. The current urgency to meet our deficit reduction targets gives us the chance to make smart changes,” Lugar says. “We offer our bill as a thoughtful option for consideration by the House and Senate agriculture committees, as well as the Congressional Deficit Reduction Super Committee charged with making real federal spend-ing cuts by the end of the year.”
The Lugar-Stutzman proposal would end current farm programs including direct payments to farmers, counter-cyclical payments, the Average Crop Revenue Election (ACRE) program and market-ing assistance/loan deficiency payments. It also would establish an aggregate risk and revenue management (ARRM) program that allows producers to protect between 75 percent and 90 percent of their expected crop revenue. All farmers would be able to purchase supplemental revenue insurance that is underwritten by USDA’s Risk Management Agency.
The proposal also would replace dairy price support and Milk Income Loss Contract programs with a voluntary margin protection program that covers 80 percent of the producers’ production history when margins fall below $4 per hundredweight.
The National Milk Producers Federation (NMPF) on Thursday welcomed the proposal “as a major step forward in improving dairy policy.”
Volume 31 October 7, 2011 Number 37
WASHINGTON — President Obama submitted to Congress Monday long-pending free trade agreements (FTAs) with South Korea, Colombia and Panama. Wednesday the House Ways and Means Com-mittee held a markup of the agreements, and it is expected that the House will pass the agreements next week. A Sen-ate vote also is expected in the near future.
“For the past five years, we have been working towards this day,” House Ways and
Obama sends trade deals to Congress; dairy urges action
Means Committee Chairman Dave Camp, R-Mich., said during Wednesday’s markup. “These agreements enjoy broad bipartisan, bicameral support, and are the product of a lot of hard work from all sides. I would also like to extend my appreciation to the President for sending these trade agree-ments to Congress.”
The development comes two weeks after the U.S. Senate passed a bill to renew the Trade Adjustment Assistance (TAA) program, which the White House has said would have to be renewed as a condition for the trade agreements to advance. (See “Senate passes bill to renew TAA; dairy industry urges passage of free trade agreements” in last week’s issue of Cheese Market News.)
Obama says the trade agree-ments he submitted Monday to Congress will make it easier for American companies to sell their products in the three countries and provide a major boost to exports.
“We’ve worked hard to strengthen these agreements to get the best possible deal for American workers and busi-nesses, and I call on Congress to pass them without delay, along with the bipartisan agreement
on Trade Adjustment Assis-tance that will help workers whose jobs have been affected by global competition,” Obama says.
The export benefit from the Korea FTA to the U.S. dairy industry in the first few years after implementation will be approximately $380 million per year on average, and the gains from the Colombia and Panama FTAs are estimated to add another $50 million an-nually, according to the U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF).
USDEC and NMPF say the U.S. dairy sector will see significant gains from each of the agreements, particularly from the South Korea agree-ment, and that the FTAs have the potential to expand U.S. exports and create thousands of export-supporting jobs in the U.S. dairy industry.
“We are pleased that achiev-ing these benefits is finally within sight,” says Jerry Kozak, president and CEO, NMPF. “These agreements will not only expand export sales for such products as cheese, whey, skim milk powder and other dairy products, they will also prevent our competitors from
taking market shares that we currently have in those coun-tries.”
Competitors already have negotiated their own trade agreements with Colombia, Panama and South Korea, the Grocery Manufacturers Associ-ation points out. The European Union’s trade agreement with South Korea went into effect July 1, and a trade agreement between Colombia and Canada took effect Aug. 15.
“By passing FTAs with South Korea, Panama and Colombia, we will create a level playing field for U.S. products that increase our competitiveness in those countries and help the food, beverage and consumer packaged goods (CPG) industry innovate, expand and create new jobs,” says Pamela G. Bai-ley, president and CEO, GMA. “The food, beverage and CPG industry is an important cor-nerstone of the U.S. and global economy and quick passage of these agreements will ensure U.S. goods will not be placed at a competitive disadvantage.”
The International Dairy Foods Association (IDFA) has commended Obama for sub-mitting the FTA legislation to Congress and is urging Congress
Production of U.S. cheese declines vs. one year ago
Turn to TRADE, page 9 a
Turn to AUCTION, page 5 a
WASHINGTON — Total U.S. cheese production, excluding cottage cheese, was 868.1 million pounds in August, down 0.3 percent from August 2010’s 870.7 million pounds but up 1.5 percent from July 2011’s 855.4 million pounds, ac-cording to data recently released by USDA’s National Agricultural Statistics Ser-vice (NASS). (All figures
Turn to NASS, page 9 aTurn to REFORM, page 10 a
F USDA to increase dairy import license fee. For details, see page 3.
F Guest column: ‘Sustainability by the numbers.’ For details, see page 4.
F Complaint against Dean Foods questions DHA health claims. For details, see page 5.
F IDFA ad urges consumers to tell government ‘get out of my milk.’ For details, see page 10.
DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions.
STAFF SUBSCRIPTION INFORMATIONCheese Market News®, Publ icat ion #0598-030, (ISSN 0891-1509), is published weekly by Quarne Publishing LLC, 4692 Signature Drive, Middleton, WI 53562; Phone 608/831-6002; FAX 608/831-1004. Periodicals postage paid at Madison, WI. Circulation records are maintained by Quarne Publishing LLC, 4692 Signature Drive, Middleton, WI 53562. POSTMASTER: Send address changes to Cheese Market News®, Subscriber Services, P. O. Box 628254, Middleton, WI 53562; Form 3579 requested; or call direct at 608/831-6002. All rights reserved under the United States International and Pan-American Copyright Conventions. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, mechanical, photocopying, electronic recording or otherwise, without the prior written permission of Quarne Publishing LLC. Opinions expressed in articles are those of the authors and do not necessarily reflect those of Quarne Publishing LLC dba Cheese Market News®. Cheese Market News® does not endorse the products of any advertiser and does not assume and hereby disclaims any liability to any person for any loss or damage caused by errors or omissions in the material contained herein, regardless of whether such errors result from negligence, accident or any other cause whatsoever. Copyright 2011 by Quarne Publishing LLC.Subscriptions: $135 for U.S., second-class delivery; $190 for U.S. first-class delivery including Canada and $330 Inter-national rate to all others. Printed in U.S.A.
REGULAR CONTRIBUTORSJoseph O’Donnell, John Umhoefer, Downes-O'Neill LLC, International Dairy Foods Association, National Milk Producers Federation, U.S. Dairy Export Council
SUBSCRIPTIONS & BUSINESS STAFFSubscription/advertising rates available upon requestContact: Susan Quarne - PublisherP.O. Box 628254, Middleton, WI 53562PHONE 608/831-6002 • FAX 608/831-1004
WEBSITE: www.cheesemarketnews.com
CLASS III PRICE (Dollars per hundredweight, 3.5% butterfat test)
YEAR2005200620072008200920102011
JAN 14.1413.3913.5619.3210.7814.5013.48
FEB 14.7012.2014.18 17.03 9.31 14.2817.00
MAR14.0811.1115.0918.0010.4412.7819.40
APR14.6110.9316.0916.7610.7812.9216.87
MAY13.7710.8317.6018.18 9.8413.3816.52
JUN13.9211.2920.1720.25 9.9713.6219.11
JUL14.3510.9221.3818.24 9.9713.7421.39
AUG13.6011.0619.8317.3211.2015.1821.67
SEP14.3012.2920.0716.2812.1116.2619.07
OCT14.3512.3218.7017.0612.8216.94
NOV13.3512.8419.2215.5114.0815.44
DEC13.3713.4720.6015.2814.9813.83
(These data, which includes government stocks and is reported in thousands of pounds, are based on reports from a limited sample of cold storage centers across the country. This chart is designed to help the dairy industry see the trends in cold storage between the release of the National Agricultural Statistics Service’s monthly cold storage reports.)
ButterCheese
7,898135,187
-106-1,026
10,696130,227
-21-205
-2,798+4,960
NC NC
Weekly Cold Storage Holdings October 3, 2011 On hand Week Change since Oct. 1 Last Year Monday Change Pounds Percent Pounds Change
Cheddar Cheese and Dairy Product Prices
Cheese 40-lb. Blocks:
*/Revised. 1/Prices weighted by volumes reported. 2/Sales as reported by participating manufacturers. Reported in pounds. More information is available by calling NASS at 202-690-2424.
9/10/11 9/24/11
Average price1
Minn./Wis. Other states U.S.Sales volume2
Minn./Wis. Other states U.S.
Cheese 500-lb. Barrels:Average price1
Minn./Wis. Other states U.S.Adj. price to 38% moisture Minn./Wis. Other states U.S.Sales volume2
Minn./Wis. Other states U.S.Moisture content Minn./Wis. Other states U.S.
9/17/11 10/1/11
$1.9082$1.7915$1.8005
652,1457,730,2688,382,413
$1.8569$1.8484$1.8521
$1.7783$1.7625$1.7694
4,256,8175,442,2159,699,032
35.26%34.98%35.10%
$1.8911*3,917,979
$1.541317,890,133
*$.6005*8,976,464
Butter:Average price1 U.S.Sales volume2 U.S.
Nonfat Dry Milk:Average price1 U.S.Sales volume2 U.S.
Dry Whey:Average price1 U.S.Sales volume2 U.S.
For the week ended:
$1.8644$1.7523$1.7589
706,10311,314,00112,020,104
$1.8088$1.8019$1.8043
$1.7349$1.7237$1.7276
3,398,6856,355,7899,754,474
35.36%35.19%35.25%
$1.80844,163,658
$1.516417,599,927
$.60556,695,437
$1.9186$1.8723$1.8752
624,8349,224,1329,848,966
$1.8860$1.9037$1.8958
$1.7994$1.8068$1.8035
4,010,2364,988,8508,999,086
35.01%34.68%34.83%
$2.03564,744,724
$1.557815,118,546
$.58905,862,764
$1.9232$1.8064$1.8159
756,8168,467,8429,224,658
$1.8608$1.8686$1.8652
$1.7800$1.7824$1.7814
4,011,1945,238,6169,249,810
35.19%35.00%35.08%
$1.9393*4,396,780
$1.536518,208,625
$.59088,143,601
Total Contracts Traded/Open Interest Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.
Total Contracts Traded/Open Interest Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.*Total Contracts Traded/Open Interest reflect additional months not included in this chart.
DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions.
For more information circle 1 on the FAST FAX form on page 12.
NEWS/BUSINESS MARKET INDICATORS
YOU CAN CUT YOUR HEDGING COSTS TRADE WITH GPC FOR $3.41 PER SIDE■ Class III Milk ■ Class IV Milk ■ Whey ■ Cheese■ Cash Settle Butter ■ NFDM ■ Options■ Trade Electronically $3.41 Side*
BROKERS OF DAIRY FUTURES & OPTIONS SERVING AGRI-BUSINESS SINCE 1933
JOE, ART, LEON & JARON GRESSEL
CHEESE FUTURESNOW TRADING.
WASHINGTON — The National Cheese Institute (NCI) now is accepting nomi-nations for its highest honor, the NCI Laureate Award. Nominations must be submitted by Nov. 4, and there is no fee to enter.
The award winner will be recog-nized at a special ceremony during the International Dairy Food Association’s (IDFA’s) Dairy Forum 2012, Jan. 15-18, in La Quinta, Calif. This year’s winner will receive free registration, airfare and hotel accommodations to IDFA’s Dairy Forum (the winner will be responsible for all tax liabilities).
Candidates should be business or academic leaders who have made sig-nificant, prolonged contributions to the development and growth of the cheese
NCI seeks nominations for Laureate Awardindustry. The award recipient is chosen by a panel of industry professionals based on a nominee’s overall career achievements. Past award winners have ranged from cheese company founders and marketers to dairy microbiologists.
“The U.S. cheese industry continues to be driven by leaders who dedicate themselves to quality cheesemaking and innovation,” says NCI and IDFA Presi-dent and CEO Connie Tipton. “We look forward to recognizing and rewarding those individual contributions with the presentation of the 2012 award.”
For more information and a nomi-nation form, contact Tracy Boyle, IDFA director of boards and em-ployee relations, at [email protected], or visit www.idfa.org. CMN
WASHINGTON — USDA’s Foreign Agricultural Service (FAS) in the Sept. 30 Federal Register announced that a fee of $170 will be charged for the 2012 tariff-rate quota (TRQ) year for each license issued to a person or firm by USDA authorizing the importation of certain dairy articles subject to TRQs.
The new fee is increased from the $150 fee that USDA has been charging for each dairy import license in every year since 2006, but down from the $200-per-license fee charged in 2005.
The Dairy Tariff-Rate Import Quota Licensing Regulation provides for the issuance of licenses to import certain dairy articles that are subject to TRQs set forth in the Harmonized Tariff
USDA to increase dairy import license feeSchedule of the United States. Those dairy articles may only be entered into the United States at the in-quota TRQ tariff rates by or for the account of a person or firm to whom such licenses have been issued and only in accordance with the terms and conditions of the regulation.
Licenses are issued on a calendar year basis, and each license authorizes the holder to import a specified quantity and type of dairy article from a specified country of origin.
For more information, contact Abdelsalam El-Farra with USDA’s Dairy Import Licensing Program, at 202-720-9439; e-mail: [email protected]. CMN
Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. #The total contracts traded for Class III milk includes electronically-traded contract volumes.*Total Contracts Traded/Open Interest reflect an additional month not included in this chart.
John Umhoefer is executive director of the Wisconsin Cheese Makers Association. He contributes this column monthly for Cheese Market News®.
Perspective:WCMA
Wisconsin’s costly lead on phosphorusLast year Wisconsin regulators stepped
ahead of most of the nation to place strict limits on phosphorus in dairy plant waste-water, the kind of technical regulation that garners no headlines, but adds hundreds of millions of dollars in new costs to industry.
A look at other cheesemaking states finds Wisconsin ahead of the curve, en-forcing water quality requirements found in the Clean Water Act years in advance of other dairy states. The result is high-tech, high-cost, chemical-heavy solutions forced on dairy plants that contribute only a fraction of the phosphorus found in Wisconsin’s waterways.
Last winter, Wisconsin’s Department of Natural Resources (DNR) completed regulations that establish these new water-quality based effluent standards for phosphorus, dropping the 1 mg/liter limit found in most discharge permits to 0.1 mg/liter for discharge to rivers and 0.075 mg/liter for discharge into streams. This 10x or greater reduction forces dairy plants to turn to chemical treatments and advanced filtration systems for a final polish on wastewater.
The state agency estimated last year that 35 dairy plants, food processing plants and paper mills in Wisconsin might face
$440 million in new wastewater process-ing costs. But the Probst Group, working on behalf of WCMA, estimated that up to 30 dairy plants alone will be directly impacted, as well as dairy plants that discharge to cities and towns that also face these tough new phosphorus limits.
Thanks to a provision in this year’s Wisconsin state budget, the DNR must revisit these new regulations with an eco-nomic impact report. Today, DNR staff is reaching out to industry for this report, due Dec. 31, but the message hasn’t changed: Dairy plants are a minor contributor of phosphorus in Wisconsin waterways, and they face major costs and increased use of energy, chemicals and manpower to meet these new regulations.
One aspect of DNR’s economic analysis is comparison of a regulation to similar rules in neighboring states. For the cheese indus-try, the most relevant comparison would be states with significant cheese manu-facturing capacity. In the United States, six states— Wisconsin, California, Idaho, New York, Minnesota and New Mexico — produce 75 percent of America’s cheese.• California & phosphorus
California’s regulation of nutrients in wastewater is complicated by the state’s division into nine regional Water Quality Control Boards. These Boards tend to express phosphorus limits as mass limits (e.g., kilograms of phos-phorus), generally for lakes.
Phil Isorena, senior water resource
control engineer and chief of NPDES wastewater permitting for the State Water Resources Control Board, manages NPDES (National Pollutant Discharge Elimination System) permits for food processors in California. Mr. Isorena notes that he has not included phosphorus limits in the permits he has written for dairy processing plants in California. Many plants in California discharge to cropland rather than surface waters, he says. • Idaho & phosphorus
Idaho does not directly issue NPDES permits, but maintains a narrative standard for control of phosphorus in wastewater. (The narrative standard in Idaho states: “Surface waters of the state shall be free from excess nutrients that can cause visible slime growths or other nuisance aquatic growths impair-ing designated beneficial uses.”)
U.S. EPA drafts permits on behalf of Idaho and numeric effluent limits for phosphorus have been established for some dairy processors. One cheese manufacturer in Idaho has a 0.5 pound/day limit for phosphorus discharged into a river and another manufacturer has a low 0.07 mg/liter monthly average limit for a river discharge.• New York & phosphorus
New York state handles NPDES permits and currently uses a narrative standard for phosphorus. Certain watersheds, such as the Great Lakes and New York City have
G U E S T C O L U M N I S T C M N E x c l u s i v e !
WCMA UPDATE
Vernon J. Spaulding is president of Providence Process Solutions LLC, North Prairie, Wis. He is a guest columnist for this week’s Cheese Market News®.
Perspective:Industry Issues
Sustainability by the numbers
Turn to UMHOEFER, page 7 a
The term “sustainable” has become very popular today based on a strong en-vironmental movement supporting the preservation of our natural resources. While a need to preserve our natural resources deserves proper attention, this article takes a different approach to sustainability as it relates to a com-pany’s business model.
A business model can be defined as “the successful conversion of resources in a manner that provides real economic value to customers while producing a sustainable, differentiable and profit-able market position.” Merriam-Webster
defines sustainability as “of, relating to, or being a method of harvesting or using a resource so that the resource is not depleted or permanently damaged.” If we combine both concepts, one could deduce that a sustainable company is one that utilizes their internal resources in a manner that allows for sustainable profitability.
Evaluating the sustainability of a company’s business model can be best supported using proven methodologies like the Six Sigma RDMAIC Model, or Recognize, Define, Measure, Analyze, Implement and Control.
“R”ecognizing those variables in a business model that can have the big-gest impact on profit is our first priority. In order to determine this, we need to better understand our cost-profit model.
Increasing profitability as shown in the graph on this page can be achieved by increasing the slope of the revenue curve via increasing your price, selling more units, or reducing your fixed and variable costs. Determining which combinations of these items to focus on is commonly found via trending various line items in your profit and loss statement.
“D”efining what items to focus on then becomes a derivative of how well you know your industry, your processes and applicable technologies. Mastery of all three of these aspects will provide the necessary foundation for sustain-
able business strategies. Even armed with this know-how, effective business strategies must be fact based, where quantitative analysis is properly per-formed using real world data rather than guesses and assumptions whenever possible. Creating costs and revenue plots over time or unit volumes is the preferred method for business model quantitative analysis.
“M”easuring revenue per unit and unit sales can be plotted based on fac-tors like market elasticity, customer perceived value-add, market penetra-tion levels, distribution network, mar-ket awareness, competition and sales proficiency. Cost factors like cost of dairy liquids, resin, fuel, labor, liability insurance, cost of funds and line of credit, employee training and turnover,
RAISING THE STAKES — Susan Quarne, left, publisher of Cheese Market News, and Ken Neu-meier, president and CEO of Wisconsin Aging and Grading Cheese Inc., try to outbid each oth-er for 10 pounds of Prosciutto and Mozzarella Rolls made by Formaggio Italian Cheese, Hur-leyville, N.Y., Tuesday night at the World Dairy Expo Championship Dairy Product Contest auction. Quarne wound up winning the bid for $130 per pound, or a total of $1,300. This year’s auction, sponsored by the Wisconsin Dairy Products Association, raised a total of $39,160.
Department, the Ronald McDonald House and Second Harvest Food Bank.
“We started this contest nine years ago to benefit the entire dairy industry,” Legreid says. “Due to this contest, manu-facturers of all dairy products now have unique — and in many cases, first-time opportunities — to enjoy the myriad promotional and marketing opportuni-ties resulting from this contest. Simply put, this contest is achieving its initial goals to promote all dairy products throughout North America.”
Cheese Market News sponsors the contest’s Grand Champion Cheese and Butter Trophy, which this year was awarded to Gary Grossen, Master Cheesemaker at the University of Wis-consin’s Babcock Hall Dairy Plant, for his award-winning Gouda.
The 11-pound Gouda was purchased by Novak’s Cheese, De Pere, Wis., for $350 per pound, or a total of $3,850.
The Tour of America’s Dairyland group — founded by Bill Koch, also bidding at
Turn to RESULTS, page 8 a
Complaint against Dean Foods Co.’s Horizon Organic Milk questions DHA health claimsCHICAGO — A class action complaint filed this week against Dallas-based Dean Foods’ Horizon Organic Milk alleges that the product’s packaging includes claims that are not supported by science and are misleading to con-sumers.
According to the complaint, filed in U.S. District Court for the Northern District of Illinois, Dean Foods Co. manufactures, markets, sells and dis-tributes Horizon Organic Milk plus DHA Omega-3, a line of four organic milk products fortified with highly-processed fermented algae.
The plaintiff in the case is listed as Jamie Walker, who “by and through her
attorneys, brings this action on behalf of herself and all other similarly situated Illinois residents and residents of states with Consumer Fraud Laws similar to that of Illinois under the facts particular to this case.
“Through an extensive, widespread, comprehensive and uniform nationwide marketing campaign, defendants claim that consuming their premium priced DHA-fortified milk will support brain health in children and adults of all ages,” the complaint says.
The complaint notes that specifi-cally, “front and center and prominently featured by itself in a white banner” running across the top of each milk
carton, it states that “DHA Omega-3 Supports Brain Health.” The complaint notes that the message also appears on the top, back and left side panel of each milk carton.
“However, the DHA-fortified milk products do not support brain health in children or adults,” the complaint says. “Defendants also do not have competent and reliable scientific evidence to sup-port their brain health representation. Clinical cause and effect studies have found no causative link between DHA algal oil supplementation and brain health. Defendants’ representations are false, misleading and reasonably likely to deceive the public.”
Walker is asking that Dean Foods “halt the dissemination of this false and misleading advertising message, correct the false and misleading perception it has created in the minds of consum-ers, and obtain redress for those who have purchased the DHA-fortified milk products.”
Horizon Organic says it does not discuss details of pending litigation.
“However, we plan to vigorously de-fend ourselves against the allegations about the labeling and marketing of our Horizon’s DHA Omega-3 enhanced milk products,” the company says. “We believe that the suit challenging Horizon’s label is without merit.” CMN
For more information circle 3 on the FAST FAX form on page 11.
NEWS/BUSINESS
SPAULDINGContinued from page 4
WASHINGTON — In testimony provided this week to the Senate Judiciary Com-mittee, the National Milk Producers Federation (NMPF) notes that current labor and immigration policies put the U.S. dairy farm sector at a disadvantage and that a change in laws is necessary in order to address the realities of dairy production in the United States.
In testimony presented to the Senate Judiciary Subcommittee on Immigration, which held a hearing Tuesday, NMPF writes that there remains a persistent shortage of native-born workers inter-ested in employment on dairy farms, which is why farmers cannot find enough American workers to milk cows and perform other critical job functions on dairy farms.
“Even in this time of high unemploy-ment, our dairy farmers universally report an inability to find enough Ameri-can workers ... even if they offer better pay than other jobs,” says Jerry Kozak, president and CEO, NMPF. “Sufficient numbers of local workers are simply not available or not interested in working on dairy farms.”
NMPF notes that a survey it conducted in 2008 to quantify the workforce hir-ing practices of dairy farms found that
National Milk Producers Federation voices concerns on current labor, immigration policyU.S. dairies employed 138,000 full-time equivalent workers, of which an estimated 57,000, or 41 percent, were foreigners.
NMPF notes other sectors in agricul-ture facing the same problem may be able to use the H-2A visa program to hire seasonal immigrant workers despite the significant flaws in the program, but the dairy sector cannot, a situation that is “fundamentally unfair,” Kozak says.
“America’s dairy farmers need and deserve to have the access to legal foreign workers as other sectors of the agricultural industry,” he adds.
Kozak notes that most current propos-als to provide agriculture with a labor fix are designed to address the seasonal hir-ing needs of other portions of agriculture, but not the labor needs of dairy farmers each day of the year; NMPF’s position is that the domestic dairy sector needs a year-round guest worker program.
An example of one such proposal is the Legal Workforce Act, sponsored by Rep. Lamar Smith, R-Texas, which recently was approved by the House Ju-diciary Committee, which Smith chairs. The bill would require all employers to use the federal E-Verify system to check work eligibility when a job offer is made.
Created 15 years ago, E-Verify allows
employers to electronically verify that new employees are legally authorized to work in the United States. Specifically, the Social Security numbers of new hires are checked against Social Security Admin-istration and Department of Homeland Security records in order to eliminate fraudulent numbers and help ensure that new hires are genuinely eligible to work.
In passing the measure last month, the House committee rejected an agri-cultural worker amendment to the bill offered by Rep. Dan Lungren, R-Calif., leaving the bill lacking a provision for an agricultural workforce as it goes to the full House for passage.
In a recent letter to Rep. Smith, NMPF noted it is imperative that any mandatory E-Verify legislation incorporate provisions for a work-able, efficient worker program that encompasses all of U.S. agriculture (see “Industry raises concerns over bill requiring employers to electron-ically-verify workers” in the Aug. 5, 2011, issue of Cheese Market News).
NMPF’s testimony this week also highlighted concerns the group has with the enforcement-only approach to immigration policy reflected in the Smith legislation.
“If Congress is going to enact a na-tionwide E-Verify requirement, then it also needs to provide agriculture with a workable guest program to meet our future needs and a means to allow those who are currently working in undocumented status to be eligible for that guest worker pro-gram,” NMPF says. “A failure to do so risks severely damaging the economic vitality of the nation’s entire agricul-ture sector.” CMN
USDA seeks up to 72.2 million pounds of cheese productsKANSAS CITY, Mo. — USDA an-nounced this week it is seeking offers to sell the government processed and blended cheese products.
USDA is seeking up to 72.2 million pounds of cheese in various formats including 2- and 5-pound loaves and sliced loaves.
Offers are due by 9 a.m. Oct. 21 in Kansas City.
For more information, v is -i t h t t p s : / / p o r t a l . w b s c m . u s d a .gov/publicprocurement. CMN
quality factors like rework, returns and recalls, new governmental regulations, inventory levels, distribution costs, R&D, promotions, concessions and utili-ties should all be graphed according to their proper dependent variables.
“A”nalysing your trend plots requires
an appreciation for “Quantitative Literacy” or the ability to properly as-sociate cause and effect relationships in mathematical models that adequately describe factors like linear based con-stant rates of change or exponential constant percentages of change. Be-ing able to determine whether your trend plots are divergent, meaning the equation has no limit, or convergent, meaning the expression has a limit, is
a critical analytical analysis that must be performed.
Even after a series of top priority plots are established and properly analyzed, an experienced business modeler needs to understand the inter-relationships between variables of dissimilar plots, a process often termed multi-variant model analysis and predictive control.
These systems are greatly valued based on the insights they can produce and are utilized at most all Fortune 100 companies today. While the analytic software can get very expensive, there are much lower cost techniques that can be deployed in order to achieve similar results at small to medium sized compa-nies. However, the application specialist must truly understand the food and dairy industries, residing technologies and business process applications.
“I”mplementing an effective strat-egy begins with a sound knowledge of cause and effect relationships and must support a company’s ability to effectively execute change within their business culture. Such implementations should also be accompanied with effective process monitoring and reporting tools that can be as simple as pen and paper or Microsoft Excel, or take a more auto-mated form via the implementation of plant floor Supervisory Control and Data Acquisition (SCADA), Manufacturing Execution Systems (MES), Enterprise Resource Planning (ERP) and Business Intelligence (BI) scorecard reporting systems. The key to a successful imple-mentation of any of these systems is to truly understand what variables to track and how to track them in a timely and
accurate fashion so that proper strategy validation can occur.
“C”ontrolling the long-term imple-mentation of best business practices and modified standard operating pro-cedures (SOPs) for single or multi-plant applications requires proper monitoring and documentation of essential activi-ties, while also keeping a diligent focus on the factors that will change the underlying cause and affect factors. Such change agents can include new technologies, new competitive threats, changing consumer tastes, new regula-tions and changing costs. Monitoring systems should support a series of key performance metrics each custom designed to suit your businesses spe-cific needs using a balanced scorecard approach.
The purpose of this article is to help business strategists better ap-preciate the quantitative analysis, methodologies and complexities as-sociated with developing sustainable business models. It also encourages all business shareholders to place greater emphasis on the development of multi-disciplined, multi-department sustainable business models for their businesses. After supporting such implementations for more than 24 years, it has been my experience that those companies who can effectively design and manage effective business strategies are truly sustainable. CMN
The views expressed by CMN’s guest columnists are their own opinions and do not necessarily reflect those of Cheese Market News®.
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SECAUCUS, N.J. — Kosherfest 2011 will take place at the Meadowlands Exposition Center in Secaucus, N.J., Nov. 8-9. Organizers say Kosherfest, now in its 23rd year, is the world’s largest kosher food, foodservice, food equipment, beverage, wine and spirits trade show.
Buyers who attend Kosherfest rep-resent a broad spectrum, from indepen-dent restaurants and specialty markets to supermarket chains, ingredient buy-ers, big box stores and others. More than 6,000 professional attendees and more than 350 exhibitors from around the world will be at the show with hundreds of new products.
Kosherfest to be Nov. 8-9 in Secaucus, N.J.In addition, the annual Kosherfest
New Products Competition will take place Oct. 27 at the Jewish Community Center in New York, prior to Kosherfest. A panel of kosher food buyers will select the best in 17 categories, from snacks to beverages to dairy. Winners will be announced and products will be show-cased at the Kosherfest New Product Showcase during the trade show.
Pre-registration is $30 and on-site registration is $60 for a two-day exhibit pass. Kosherfest is produced by Diversified Business Communica-tions and coproduced by Lubinsky. For more information or to register, visit www.kosherfest.com. CMN
EVENTS
DARBOY, Wis. — The Eastern Wis-consin Cheesemakers & Buttermakers Association will meet Nov. 2 for its 18th annual convention at the Darboy Club in Darboy, Wis.
In addition to the annual business meeting, the event will feature Bob Brad-ley, emeritus professor of Food Science at the University of Wisconsin-Madison, who will talk about his new Butter Book, a speaker on what to do and not to do dur-ing cheese factory recalls, and the usual
EWCBA will hold annual convention Nov. 2updates on the Center for Dairy Research, the Wisconsin Cheese Makers Association and the Wisconsin Milk Marketing Board.
The event also will include “Making a Holiday Craft,” a ladies’ program hosted by Barb and Helen Henning. A cocktail hour and banquet with door prizes will round out the evening.
The cost for registration and banquet is $30 before Oct. 27 and $35 after Oct. 27. In addition, membership registra-tion is $10 per person.
For more information or to receive a registration form, contact Barb Henning, member services manager, 920-894-3924, fax 920-894-3022 or e-mail [email protected]. CMN
effluent limits in permits, according to Koon Tang, director, Bureau of Water Permits, New York Department of En-vironmental Conservation.
Mr. Tang describes the department as in a “research phase” regarding aquatic protection for streams and rivers. He states that any rule with technical or water-quality based limits for phosphorus is “a few years away,” for New York dairy processors. Jeff Myers, director of assess-ment & management in the department concurs. “We won’t see anything formal on phosphorus until about 2013,” he tells WCMA. “We’re taking more of a wait-and-see approach vs. other states that have stuck their neck out on this issue.”• Minnesota & phosphorus
Minnesota regulates NPDES permits and spells out a 1 mg/liter effluent limit for phosphorus in state regulations. The limit captures discharges to lakes and reservoirs, certain state rivers and ap-plies to any new or expanding wastewater system. State regulators note that limits for wastewater discharges into streams are in the process of being drafted and may be ready for review in 2013.
Minnesota offers practical “alterna-tive” phosphorus effluent limits in its regulation, i.e., a limit higher than 1 mg/liter. One of the three triggers for an al-ternate limit: “the environmental benefits to be achieved by meeting a phosphorus limit are outweighed or negated by the environmental harm caused by meeting a limit….” The increased energy and chemi-cal use required to capture the last fraction of phosphorus in dairy wastewater is argu-ably a net negative for the environment.• New Mexico & phosphorus
No cheesemakers in New Mexico face limits for phosphorus discharged into surface water, according to Rich Powell with the Surface Water Quality Bureau in the New Mexico Environment Department. U.S. EPA administers NPDES permits for New Mexico and some nutrient load limits are in place for waters in the state. However, cheese manufacturers are not discharging to surface water in the state and do not gen-erally face these limits, Powell says. CMN
The views expressed by CMN’s guest columnists are their own opinions and do not necessarily reflect those of Cheese Market News®.
For more information circle 5 on the FAST FAX form on page 12.
the auction, and Bill Ochowicz — pur-chased the Grand Champion Grade A and Ice Cream winner — 15 pounds of Regular Chocolate Ice Cream made by Gifford’s Dairy, Skowhegan, Maine, for $90 per pound, or a total of $1,350. Dairy Foods magazine sponsors the Grand
NEWS/BUSINESS
GRANTSBURG, Wis. — Burnett Dairy Cooperative on Thursday held a ground break-ing ceremony for the company’s new $10 million expansion project at its Grantsburg, Wis., facility. The project will add 30,000 square feet of space to the existing facility, and will include a centralized office as well as production space including a cooler, packaging machinery and an aging room for cheese, says Tasha Burilini-Olson, retail and market manager, Burnett Dairy Cooperative. Burilini-Olson notes the expansion is necessary to meet the company’s growing demand for its block cheese at the retail level. She adds that the project also will include expansion of the company’s retail store. Epstein — an architecture, interiors, engineering and construction firm based in Chicago — is serving as owner’s representative of the project. Ed Curley, project manager for the Burnett expansion, notes that working with Burnett Dairy in this capacity has been rewarding. “Burnett’s dedication to their business and their customers carries over to the way in which they have worked with the architects and engineers at our firm,” Curley says. Burilini-Olson notes the expansion should entail four phases, with estimated completion currently slated for the end of 2013. CMN
Photo courtesy of Burnett Dairy Cooperative
Growth and expansion
GRAND CHAMPION GOUDA — Susan Quarne, left, publisher of Cheese Market News, awards Gary Grossen, Master Cheesemaker at the University of Wisconsin’s Babcock Hall Dairy Plant, the 2011 Grand Champion Cheese and Butter Trophy for his award-winning Gouda. The award was presented Tuesday night during the World Dairy Expo Championship Dairy Product Contest auction, sponsored by the Wisconsin Dairy Products Association. Cheese Market News sponsors the Grand Champion Cheese and Butter trophy.
Photo courtesy of Allan Ver Voort
RESULTSContinued from page 5
Champion Grade A and Ice Cream trophy.Some of the products were com-
bined into one lot for bidding this year. The first place products and their bid amounts are as follows:
Lot 1: Sharp Cheddar — R. Mueller Service and Equipment Co., Monroe, Wis., purchased 40 pounds of White Sharp Cheddar made by Foremost Farms USA, Cochrane, Wis., for $60 per pound, or a total of $2,400.
Lot 2: Brick and Muenster — The Insurance Center, Onalaska, Wis., purchased 11 pounds of Brick made by Babcock Hall Dairy Plant, Madison, Wis., for $80 per pound, or a total of $880.
Lot 3: Mozzarella, Fresh Moz-zarella, Provolone and Reduced Fat Cheese — Grassland Dairy Products, Greenwood, Wis., purchased a combined 44 pounds of products made by Lactalis American Group — Mozzarella, Milk Provolone and Reduced Fat Provolone made in Buffalo, N.Y., and Fresh Moz-zarella made in Tipton, Calif. — for $40 per pound, or a total of $1,760.
Lot 4: Blue Veined Cheese — R. Mueller Service and Equipment Co., Monroe, Wis., purchased 12 pounds of Montforte Gorgonzola made by Arthur Schuman, Fairfield, N.J., for $110 per pound, or a total of $1,320.
Lot 5: Regular Vanilla and Philly Vanilla Ice Cream — Pacific Cheese, Hayward, Calif., purchased a combined 31 pounds of Regular Vanilla and Philly Vanilla Ice Cream made by Ashby’s Ster-ling Ice Cream, Shelby Township, Mich., for $20 per pound, or a total of $620.
Lot 6: Swiss Styles — Great North-ern Corp., Racine, Wis., purchased a 20-pound Baby Swiss Wheel made by Chalet Cheese Co-op, Monroe, Wis., for $70 per pound, or a total of $1,400.
Lot 7: Open Class Cheese — Cheese Market News, Middleton, Wis., pur-chased 10 pounds of Prosciutto and Mozzarella Rolls made by Formaggio Italian Cheese, Hurleyville, N.Y., for $130 per pound, or a total of $1,300.
Lot 8: Regular, Lowfat, No Fat
and Flavored Cottage Cheese — T.C. Jacoby and Co., St. Louis, purchased a combined 24 pounds of Regular Cottage Cheese made by Dean Foods, Rochester, Ind.; Lowfat and No Fat Cottage Cheese made by Kemps, Cedarburg, Wis.; and Pineapple Cottage Cheese made by Upstate Niagara Co-op, Buffalo, N.Y., for $25 per pound, or a total of $600.
Lot 9: Cold Pack Cheese — Masters Gallery Foods Inc., Plymouth, Wis., purchased 12 pounds of Swiss Almond Cold Pack made by Pine River Pre-Pack, Newton, Wis., for $275 per pound, or a total of $3,300.
Lot 10: Salted, Unsalted and Open Class Butter — Hastings Mutual Insur-ance, Hastings, Mich., purchased a com-bined 30 pounds of Salted and Unsalted Butter made by Michigan Milk Producers Association, Constantine, Mich., and Betta Butter Honey and Walnut made by Formaggio Italian Cheese, Hurleyville, N.Y., for $30 per pound, or a total of $900.
Lot 11: Latin American, Mixed Milk and Goat Milk Cheese — Tom Kelman Consulting/Dairy Ingredients, Marshall, Wis., purchased a combined 40 pounds of Panela made by Don Francisco Cheese, Riverband, Calif.; Pastorale Blend made by Sartori Co., Plymouth, Wis.; and Cranberry Cinnamon made by Woolwich Dairy USA, Lancaster, Wis., for $25 per pound, or a total of $1,000.
Lot 12: French Vanilla and Open Class Ice Cream and Frozen Yogurt — Pacific Cheese, Hayward, Calif., purchased a combined 38 pounds of French Vanilla Ice Cream made by
are rounded. Please see CMN’s Dairy Production chart on this page.)
Production of Mozzarella, the most-produced cheese in the nation, totaled 286.9 million pounds in August, down 1.5 percent from production a year earlier. Italian-type cheese production, of which Mozzarella is the largest component, totaled 363.7 million pounds, down 0.2 percent from a year earlier.
Cheddar production in August totaled 255.0 million pounds, down 2.4 percent from a year earlier. Total American-type cheese production, of which Cheddar is the largest compo-nent, totaled 347.3 million pounds in August, down 1.0 percent from a year earlier.
Wisconsin led the nation’s cheese production in August with 213.9 mil-lion pounds, down 1.6 percent from its production a year earlier. California followed with 186.9 million pounds, down 1.7 percent from its production a year earlier.
Rounding out the next top four cheese-producing states are Idaho with 68.5 million pounds of cheese produced in August, down 6.6 percent from August 2010; New York with 64.2 million pounds, up 2.9 percent; New Mexico with 56.1 million pounds, down 5.2 percent; and Minnesota with 46.7 million pounds, down 1.9 percent.
NASS reports U.S. butter produc-tion in August totaled 133.0 million pounds, up 31.0 percent from August 2010’s 101.5 million pounds but down 1.6 percent from the 135.1 million pounds produced in July 2011. CMN
NASSContinued from page 1
to pass the agreements quickly, while avoiding additional legislation that IDFA says could undermine the expected mar-ket access gains for the dairy industry.
“The pact with South Korea is par-ticularly important, because it would reduce tariffs and expand market opportunities in a high-value market and add 10,000 or more additional U.S. jobs throughout the dairy supply chain,” says Connie Tipton, president and CEO, IDFA.
USDA Secretary Tom Vilsack also has urged Congress to work swiftly to pass the trade agreements so that U.S. agricultural exports can compete on a level playing field.
“Currently, Korea, Colombia and Panama have approved or are negoti-ating trade agreements with a host of other nations,” Vilsack says. “Complet-ing our agreements will level the playing field and secure markets for America’s farmers, ranchers, growers and produc-ers ahead of competitors in the global marketplace.”
However, not all industry groups
and lawmakers are behind all three FTAs.
In his opening statement during Wednesday’s committee markup of the agreements, ranking member Rep. Sander Levin, D-Mich., expressed sup-port for the Korea and Panama agree-ments but still opposed the Colombia FTA due to concerns over labor rights in that country.
“The basic issue that has held up consideration of the Colombia FTA is that Colombian workers have long been without basic labor rights,” Levin said Wednesday. “This is a function of a number of factors — the extreme levels of violence against workers and their leaders, near-universal lack of accountability for such acts, and ex-tensive deficiencies in labor law and practice.”
National Farmers Union President Roger Johnson also said this week that Congress should oppose the pending FTAs.
“Labor and environmental stan-dards, currency manipulation and food security are protections that are absolutely essential in any trade agree-ment to ensure that a nation is able to protect itself and compete on a level playing field,” Johnson says. “In par-ticular, South Korea has manipulated its currency twice in the past. Mexico devalued the peso shortly after the signing of NAFTA, wiping out all trade gains that the U.S. would have gotten otherwise. History is very likely to repeat itself without currency manipulation
protections.”Last week Johnson sent a letter to
leaders in the U.S. Senate urging them to pass Senate Bill 1619, the Currency Exchange Rate Oversight Reform Act of 2011. The bill would give the U.S. Treasury the authority to enforce exist-ing currency manipulation laws with countries that trade with the United States.
Despite the objections, the three trade agreements are expected to pass through the House next week.
“Now that all three agreements have been transmitted, they will be a top priority for the House,” says House Speaker John Boehner, R-Ohio. “We will quickly begin the required process to consider these bills and intend to vote on them consecutively and in tandem with Senate-passed TAA legislation.”
According to the Office of the U.S. Trade Representative (USTR), under Trade Promotion Authority already granted by Congress, the legislation for the trade agreements may not be amended, and Congress has 90 days to hold up-or-down votes on each. Changes to legislation would make it subject to normal rules and procedures, including amendment and filibuster.
“Growing American exports to South Korea, Colombia and Panama will sup-port tens of thousands of jobs here at home,” says USTR Ron Kirk. “We must take every opportunity to get America back to work, and Congress should pass these agreements without delay.” CMN
TRADEContinued from page 1
Arla to sell Poland facility, centralize cheese production AARHUS, Denmark — Arla Foods recently announced it will centralize its current production of Mozzarella at its dairy plant in Rodkaersbro, Denmark, and is in the process of selling its pro-duction facilities in Goscino, Poland.
Arla Foods says it has decided to centralize the production of Mozzarella for its European markets in a step to make production more efficient and benefit its farmers and consumers. Arla has begun the process of negotiations with a potential buyer for its Mozzarella plant in Goscino, and a letter of intent was signed by both parties in September. The transaction is expected to be final-ized by the end of the year. Arla has not disclosed the name of the interested buyer.
Arla Senior Vice President Hans Christensen says the efforts to sell the Goscino plant will have no effect on the company’s sales activities on the Polish market.
“We consider Poland to be a strategic growth market for us, and we remain fully dedicated to continue the current growth of our branded business on this market, which has doubled within the last two years,” Christensen says.
In addition to Mozzarella, the Gos-cino facility also produces yellow cheese and currently employs 100 people. CMN
For more information circle 6 on the FAST FAX form on page 12.
NMPF notes that for the dairy title of the REFRESH proposal includes key elements of the Dairy Security Act recently introduced in the U.S. House by Reps. Collin Peterson, D-Minn., and Mike Simpson, R-Idaho.
“We appreciate Sen. Lugar and Rep. Stutzman recognizing the value of including the principles of NMPF’s Foundation for the Future in their farm bill proposal,” says Jerry Kozak, president and CEO, NMPF. “The REFRESH bill, along with the Dairy Security Act in the House, now gives us the opportunity in both chambers of Congress to push for dairy reforms that give farmers protection, stability and growth.”
The International Dairy Foods Association (IDFA), which opposes the Peterson/Simpson bill, also spoke out this week in opposition to Lugar’s proposal.
“(These) bills fail to reduce the regulatory burden, caused by our an-tiquated and unnecessary milk pricing system, on the dairy industry,” says Con-nie Tipton, president and CEO, IDFA. “To find consensus on dairy policy in the short term, Congress should focus on expanding risk management tools for dairy farmers, not expanding gov-ernment regulations and government intervention in dairy markets.
“While we appreciate the efforts to include dairy in these bills as a start-ing point for discussion, we adamantly oppose the Dairy Market Stabilization Program because it is anti-consumer and imposes new taxes on dairy manu-facturers. Not a single congressional hearing has been held or economic study conducted on the impacts of the new and significantly altered details of this program on the dairy industry,” Tipton adds. “There are other dairy proposals that can be funded within existing resources available to Congress, and they do not include a government program to limit the milk supply that would hurt exports, limit industry growth and eliminate needed American jobs.”
Meanwhile, more dairy groups over the past week voiced support for the Dairy Security Act, including the Michigan Milk Producers Association (MMPA), Wisconsin Farm Bureau and Select Milk Producers.
MMPA’s board of directors late last week unanimously endorsed the Peterson/Simpson bill, noting it is time to reform the nation’s milk marketing system.
“We are moving away from an an-tiquated dairy policy to one we feel addresses the challenges of the 21st century far more adequately than we could have imagined just a few short years ago,” says Ken Nobis, MMPA presi-dent and a member of NMPF’s board.
Wisconsin Farm Bureau President Bill Bruins notes “the time has never
been more right” for dairy farmers to take steps to make the industry a reliable supplier to the world market.
“Past attempts at federal dairy policy reform often resulted in mod-est changes that rewarded other parts of the country over dairy farmers in Wisconsin and the upper Midwest,” he says. “Today, we have our best chance at true reform thanks to the work of the National Milk Producers Federation and the subsequent legislation from Peterson and Simpson.”
Brad Bouma, president of Select Milk Producers, says the Peterson/Simpson bill is the best path forward for dairy programs in the years ahead.
“The comprehensive reforms of-fered by Reps. Peterson and Simpson are a once-in-a-generation opportunity to enact a new approach that better protects dairy farmers, allows for growth, assures consumers an abun-dant supply of milk and saves taxpayers dollars,” he says.
The American Farm Bureau Federa-tion (AFBF) also recently released a set of policy reform proposals, while at the same time endorsing the Peterson/Simpson bill.
In recommendations sent to Con-gress Sept. 29, AFBF notes that con-tinuing most current farm programs is the best way to ensure a farm safety net that works for all commodities and regions of the country.
AFBF recommendations include maintaining all current commodity programs, including direct payments, crop insurance, ACRE, target prices and marketing loan programs. The group notes it is willing to consider modifications and adjustments to these programs to make them more effective in a reduced budget environment.
AFBF notes it also endorses the Peterson/Simpson bill, noting it would eliminate the current dairy price sup-port program and Milk Income Loss Contract payments and replace them with a voluntary gross margin revenue insurance program.
“Additional savings could come from consolidating conservation pro-grams into a working lands program and the Conservation Reserve Pro-gram (CRP), as well as reducing the numbers of acres eligible for CRP,” AFBF says. “We believe 23 conserva-tion programs are too many.” CMN
New IDFA ad campaign urges consumers to tell government ‘Get Out of My Milk’WASHINGTON — The International Dairy Foods Association (IDFA) this week launched a new television and print advertising campaign to edu-cate consumers about the negative economic impact of the federal milk marketing order (FMMO) system, a set of regulations that IDFA notes gives the federal government control over setting milk prices.
“It’s time consumers learned that the price of their milk is being artificially inflated by a maze of gov-ernment regulations,” says Connie Tipton, president and CEO, IDFA. “Our campaign is about encouraging consumers to tell big government to get of out their milk.”
The television commercial, which calls for the elimination of the cur-rent pricing system, shows a tiny government bureaucrat enjoying a swim in a glass of milk, much to the dismay of the woman about to take a drink.
The voiceover in the commercial states: “It seems like government is everywhere these days — including in your milk. In 1937, the federal
government created a huge bureau-cracy to establish and enforce milk prices. This maze of regulations and government red tape still exists, and it’s costing you every time you buy milk for your family. Don’t you think it’s time for big government to get out of your milk? Take action at OutofMyMilk.com.”
The campaign is kicking off in the Washington, D.C., media market with a new television commercial and full-page print ad in Politico and Roll Call. Internet ads will help bring the message to consumers outside of the Washington area, IDFA says.
IDFA notes it has long opposed milk pricing regulations that in-crease the already significant regu-latory burden on the dairy industry, put more pressure on declining milk sales and increase costs for consumers and many government nutrition and feeding programs, which already are stretched to serve Americans struggling to feed their families.
For more information, visit www.outofmymilk.com. CMN
REFORMContinued from page 1
Clarification In our Sept. 30, 2011, article,
“Recently-introduced dairy reform bill draws praise from some, oppositions from others,” we incorrectly stated the Wisconsin Dairy Business Association’s (DBA) position on U.S. Rep. Collin Peterson’s Dairy Security Act of 2011. DBA has not yet taken a position on the introduced legislation, although it opposes portions of the draft bill, which has since been modified. Cheese Market News apologizes for any inconvenience this may have caused.
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General Manager — Cheese OperationsLarge New York State dairy producer seeks cheese expert to plan, construct, and manage a new cheese facility. Technical and operational expertise in cheese production is required; cheese market place and sales acumen a plus. This position is charged with leading long and short term strategic growth initiatives in production, operations, sales and overall P&L to a facility producing specialty cheeses. Candidate must possess ability to cross-over into multiple roles and take charge when required. Must have the ability to make critical decisions and evaluate profit/loss decisions. Essential Functions:• Lead Plant efforts in meeting or exceeding goals in productivity, raw material usage, safety, quality, service and profit • Be knowledgeable of various government regulations that must be complied with i.e. OSHA, USDA, FDA, EPA, EEOC, OFCCP, PMO etc.• Conduct systematic inspections, lead, recruit, train, develop & engage management in our processes to assure we have a continued drive for improvement in the areas of cost, quality, service, people, environment and safety• Assist Sales in developing strong relationships, targeting customer procurement, R&D, supply chain and senior management teams to achieve company objectivesRequirements:• Bachelor’s degree required, preferably in Food or Dairy Science. Master’s preferred• 10 years minimum (10+ years experience preferred) in a fast-paced cheese processing facility• Technical knowledge of cheese and/or cultured dairy manufacturing• Solid organization, detailed orientation and excellent follow-through skills• Ability to communicate with a variety of people and negotiate priorities• Ability to facilitate change and involve employees to continuously improve manufacturing processes• Cheese sales and market place acumen
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Gifford’s Dairy, Skowhegan, Maine; Reduced Fat Vanilla Ice Cream made by Sassy Cow Creamery, Columbus, Wis.; and Peanut Butter Chip Frozen Yogurt made by Perry’s Ice Cream, Akron, N.Y., for $35 per pound, or a total of $1,330.
Lot 13: Strawberry, Blueberry, Open Class and Drinkable Yogurts — Wisconsin Aging and Grading Cheese, Little Chute, Wis., purchased a com-bined 48 pounds of Strawberry Yogurt made by Prairie Farms Dairy, Quincy, Ill.; Lowfat Blueberry Yogurt made by Brookshire Grocery Co., Tyler, Texas; Strawberry Rhubarb Yoghurt made by Noosa Yoghurt, Bellvue, Colo.; and Man-go Drinkable Yogurt made by Tropical Cheese Industries, Perth Amboy, N.J., for $25 per pound, or a total of $1,200.
Lot 14: Lowfat Sour Cream, Onion Dip, Southwestern Dip and Open Class Dip — Ecolab, Saint Paul, Minn., pur-chased a combined 24 pounds of Light Sour Cream, French Onion Dip, Southwestern Chipotle Dip and Garlic Parmesan Dip made by Upstate Niagara Co-op, Buffalo, N.Y., for $35 per pound, or a total of $840.
Lot 15: Open Class Soft Cheese — AgSource LLC, Tulare, Calif., purchased 10 pounds of Mascarpone made by Crave Brothers Farmstead Cheese, Waterloo, Wis., for $125 per pound, or a total of $1,250.
Lot 16: Colby/Monterey Jack — T.C. Jacoby and Co., St. Louis, purchased 40 pounds of Colby Jack made by As-sociated Milk Producers Inc. (AMPI), Dawson, Minn., for $30 per pound, or a total of $1,200.
Lot 17: Sour Cream and Ranch Dip — Cargill, Waukesha, Wis., purchased a combined 8 pounds of Sour Cream made by Hermosa Farms, Downey, Calif., and Ranch Dip made by Cass Clay Creamery/AMPI, Fargo, N.D., for $15 per pound, or a total of $120.
Lot 18: Feta — Novak’s Cheese, De Pere, Wis., purchased 10 pounds of Feta made by Nasonville Dairy, Marshfield, Wis., for $100 per pound, or a total of $1,000.
Lot 19: String Cheese and Flavored Natural Cheese — R. Mueller Service and Equipment Co., Monroe, Wis., pur-chased a combined 20 pounds of String Cheese made by Cesar’s Cheese, Co-lumbus, Wis., and Cajun Cheddar Curd made by Mill Creek Cheese, Arena, Wis.,
for $120 per pound, or a total of $2,400.Lot 20: Pasteurized Process and
Flavored Pasteurized Process Cheese — MCT Dairies, Millburn, N.J., pur-chased a combined 20 pounds of White American Pasteurized Process made by AMPI, Portage, Wis., and American with Jalapeno Pasteurized Process made by Bongards’ Creameries, Bongards, Minn., for $75 per pound, or a total of $1,500.
Lot 21: Aged Cheddar — Novak’s Cheese, De Pere, Wis., purchased 40 pounds of Aged Cheddar made by Mas-ters Gallery Foods Inc., Plymouth, Wis., for $55 per pound, or a total of $2,200.
Lot 22: Plain and Flavored Cream Cheese — AgSource LLC, Tulare, Calif., purchased a combined 12 pounds of Philadelphia Cream Cheese made by Kraft Foods, Beaver Dam, Wis., and Salsa Cream Cheese made by Franklin Foods, Enosburg Falls, Vt., for $35 per pound, or a total of $420.
Lot 23: Dark Chocolate Ice Cream and Sherbet — Carlyn Dairy Products, Munde-lein, Ill., purchased a combined 37 pounds of Zanzibar Chocolate Ice Cream made by Chocolate Shoppe Ice Cream, Madison, Wis., and Raspberry Sherbet made by Cedar Crest Specialties, Manitowoc, Wis., for $35 per pound, or a total of $1,295.
Lot 24: Open Class Hard Cheese — Bill Koch, founder of Tour of America’s Dairyland, Wauwatosa, Wis., purchased a 20-pound SarVecchio Parmesan Wheel made by Sartori Co., Plymouth, Wis., for $80 per pound, or a total of $1,600.
Lot 25: Cheddar — Custom Fabricat-ing and Repair, Marshfield, Wis., purchased 40 pounds of Cheddar made by AMPI, Blair, Wis., for $40 per pound, or a total of $1,600.
Lot 26: Whey Energy Drink and Cre-ative and Innovative — Team Sports, Wauwatosa, Wis., purchased a combined 15 pounds of Fitness Edge-Mango Peach made by Galloway Co., Neenah, Wis., and Lollibons made by Philip R’s Frozen Desserts, Winchester, Mass., for $35 per pound, or a total of $525.
Lot 27: Regular Chocolate Ice Cream — Tour of America’s Dairyland, Wauwatosa, Wis., purchased 15 pounds of Regular Chocolate Ice Cream made by Gifford’s Dairy, Skowhegan, Maine, for $90 per pound, or a total of $1,350.
Lot 28: Open Class Semi-Soft Cheese — Novak’s Cheese, De Pere, Wis., pur-chased 11 pounds of Gouda made by Bab-cock Hall Dairy Plant, Madison, Wis., for $350 per pound, or a total of $3,850. CMN
BIDSContinued from page 8
Most prices down in latest gDT auctionAUCKLAND, New Zealand — The trade weighted index was down 1.6 percent, as were most average prices, following the latest auction on global-DairyTrade, Fonterra’s internet-based sales platform.
Prices decreased quite a bit from last month’s event for Cheddar, down 4.9 percent to US$3,800 per metric ton FAS ($1.7236 per pound); rennet casein, down 7.2 percent to US$8,1,81 per metric ton FAS ($3.7108 per pound); and anhydrous milkfat, down 3.5 percent to US$3,703 per metric ton FAS ($1.6796 per pound).
Prices also were lower for skim milk pow-der, down 0.3 percent to US$3,193 per metric ton FAS ($1.4483 per pound), and whole milk powder, down 0.7 percent to US$3,309 per metric ton FAS ($1.5009 per pound).
Prices increased modestly for buttermilk powder, up 3.2 percent to US$3,075 per metric ton FAS ($1.3948 per pound), and slightly for milk protein concentrate, up 0.5 per cent to US$6,713 per metric ton FAS ($3.0450 per pound).
The next trading event will be held Oct. 18. For more information, visit www.globalDairyTrade.info. CMN
NEWS/BUSINESSPEOPLECity Kidz Ice Cream Café awarded special honor, merit certificates at World Dairy Expo
CITY KIDZ HONOR — Pastor Clinton Bush received a special award and merit certifi-cates for City Kidz Ice Cream Café’s second-place ice cream entry in the World Dairy Expo Championship Dairy Product Contest. Bush founded City Kidz Ice Cream Café in 2006 to give kids in inner-city communities an oppor-tunity to learn about working in a dairy plant, career opportunities and financial literacy.
MADISON, Wis. — Pastor Clinton Bush, founder of City Kidz Ice Cream Café, Jacksonville, Fla., received a special award for his organization’s second-place ice cream entry in the World Dairy Expo Championship Dairy Product Contest. He received the award, as well as merit certificates for the 15 young people who helped manufacture the Philly Vanilla ice cream, at a spe-cial reception at the World Dairy Expo Tuesday night. He also shared how he is providing career avenues and goals for inner-city youth.
“The second-place finish with these students is like a first-place finish,” he said of their accomplishment as he ac-cepted the award.
Bush founded City Kidz Ice Cream Café in 2006 to foster financial literacy in inner-city communities. The group provides young people the opportunity to work in a dairy manufacturing plant and learn how to pursue career opportunities.
City Kidz Ice Cream Café has part-nered with Cornell University to help teach the young participants about food science. The students came up with the formulation and submitted it in the contest. Bush says City Kidz also has a “From Classroom to Supermarket Shelves” program where the ice cream will be sold at stores such as Sam’s Club, and the proceeds will be used toward
an endowment to send the students to any university in America to study food science.
Bush says he would love to duplicate these efforts in the “Dairy Capital of America” by creating a relationship with the University of Wisconsin and getting more national partners involved.
“I think we all have a moral obliga-tion and responsibility to ensure we preserve our food industry, particularly our dairy industry, because America has always been the global leader in food science,” Bush says. CMN
Comings and goings … comings and goings
Hayssen Sandiacre, Greenville, S.C., recently announced the appointment of Eric Johnson to the position of Regional Sales Executive for the Southwest terri-tory. Minor has 15 years of experience in medical, food and consumer goods packaging and has served in various positions, including quality assurance manager and director of sales. Based out of Redding, Calif., Johnson will pro-mote sales and support offerings from HayssenSandiacre’s brands of vertical and horizontal form-fill-seal packaging equipment.
Intelligrated, Cincinnati, recently announced the appointments of Fer-nando Meneses and Roberto Laguna as key account sales managers for the company’s Mexico City operation. Men-eses and Laguna will work closely with current and prospective Intelligrated cli-ents to develop material handling system solutions and provide ongoing service and support. They will report to Julio Rubio, director of Intelligrated’s Mexico operations. Menses and Laguna have a combined two decades of experience in the material handling industry. CMN
