Volume 36
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A
September 16, 2016
Preference for ‘natural’ boosts
annatto extract demand, price
By Rena Archwamety
INSIDE
✦ Prolamina completes
plant renovation.
For details, see page 3.
✦ Guest column:
The ‘longest’ participant
in dairy: the EU.
For details, see page 4.
✦ Retail WATCH Exclusive:
BelGioioso moves
forward with classic
cheeses, new creations.
For details, see page 5.
✦ House ag committee
holds hearing on
trade with Cuba.
For details, see page 12.
Number 35
MADISON, Wis. — Annatto,
the orange-hued extract from
seeds of the Bixa orellana tree
grown in equatorial regions,
has been widely used as a coloring and spice for centuries and
as a cheese pigment since the
late 1800s. Its popularity continues to flourish, especially as
food companies recently have
started seeking more natural
ingredients due to increased
consumer demand.
Global culture and color
supplier Chr. Hansen has been
supplying annatto colors for
the cheese and dairy industry
since 1876, two years after the
company was founded. The
company notes that the major
Global dairy groups seek
WTO action against Canada
WASHINGTON — Dairy organizations in the United States, Australia,
the European Union, Mexico and New Zealand this week called for
government officials to initiate a World Trade Organization (WTO)
dispute settlement proceeding against Canada regarding recent actions they say will restrict dairy trade.
In a joint letter sent this week to trade and agriculture officials in
their respective countries, the groups say Canada’s increasingly protectionist policies violate “international trade obligations, hold out the
prospect of trade diversion with the attendant global price depressing
impacts and are in conflict with the principles of free markets and fair
and transparent trade.”
The U.S. groups, including National Milk Producers Federation (NMPF),
the U.S. Dairy Export Council (USDEC) and the International Dairy Foods
Association (IDFA), oppose a Canadian agreement in principle reached
earlier this year between Canada’s dairy producers and processors. (See
“Canada increases butter, SMP support prices; producers, processors
agree on new strategy” in the July 22, 2016, issue of Cheese Market News.)
The agreement will, among other things, establish a new ingredient
milk class to be priced at the lowest of the U.S., EU and Oceania price
for solids-non-fat (SNF) for seven years, the letter notes. This provision
provides both an incentive to substitute those ingredients for their imported counterparts and a subsidy on the production of the end product
containing those ingredients, violating Canada’s obligations under a
number of WTO and North America Free Trade Agreement (NAFTA)
provisions, the letter says. The groups also argue that Canada’s actions
would undermine the intent of the pending Trans-Pacific Partnership
(TPP) and the EU-Canada Comprehensive Economic and Trade Agreement (CETA). If ratified, Canada’s agreement would take effect Nov. 1.
The dairy organizations in the letter request the authorities of Australia,
New Zealand, Mexico, the United States and the European Commission
Turn to CANADA, page 10 a
proportion of the world’s annatto production comes from
the collection of seeds from
small trees and bushes planted
on family farms. Key markets
from which annatto seeds are
sourced include Brazil, Peru,
Kenya, India and the Philippines.
“Annatto is an ancient seed
that has been used for a very
long time, all the way back to
local tribes using it for face
painting and the coloring of
clothes,” says Christian Hjortholm Steffensen, marketing
manager and strategic account
manager, Chr. Hansen.
Steffensen adds that annatto is an affordable and
widely used natural coloring for
cheese and other food products
in the United States and most
parts of the world.
“It’s a relatively inexpensive
natural color,” he says. “Many
natural colors are quite expensive compared to artificial
colors. Annatto is an exception,
due to its large tradition and
supply network.”
There are two primary types
of annatto coloring: bixin,
which is oil-soluble, and norbixin, which is water-soluble.
“The food industry uses
bixin for things like butter,
processed cheese, popcorn oil
and certain snacks,” says Campbell Barnum, vice president of
branding and market development at global color provider
D.D. Williamson (DDW). “Norbixin is used in natural cheeses
like Cheddar, Red Leicester or
Gouda, vanilla ice cream, peach
yogurt, chocolate drink mix and
egg substitutes.”
The use of annatto originated as a way to achieve a
consistent color for cheese,
according to David Potter, vice
president and technical manager of Madison, Wisconsinbased The Dairy Connection,
an ingredient supplier to smallscale cheesemakers.
“In the winter it would be
very white, and in the summer,
when the cows were out on
pasture, there was more beta
carotene in the milk, producing
a richer cheese color,” Potter
says. “When marketing it on a
large scale, they wanted more of
a standardized color approach.”
Potter adds that annatto
tends to be used more in Cheddar in the Midwest, while more
Cheddars on the East and West
coasts are white. Annatto also is
used more commonly in barrel
cheese and shreds.
• Natural demand
At the beginning of this year,
Kraft Heinz changed the formu-
High supply leads to lower
USDA cheese price forecast
lation of its Kraft Macaroni &
Cheese, replacing synthetic
colors with colors derived
from annatto and other natural
sources. This greatly increased
the demand for annatto, contributing to rising prices.
“Because of the size and
scale of these major brands,
this does change the amount
of supply needed from the
annatto industry,” Steffensen
says. “With consumers being
more concerned than ever with
what they eat, the demand for
natural pigments like annatto
will most likely only go up from
here.”
He adds that there may be
even more demand in the future
as other leading food manufacturers such as Mars, General
Mills, Kellogg’s and others also
have committed to converting
to natural colors, potentially
increasing demand for annatto
in the confectionery, cereal and
other industries.
DDW notes that with the
increased demand, annatto
supply in the last 24 months has
gone from OK to finely balanced
to tight. Prices currently are
higher than they have been in
five to six years.
“On a year-to-year basis, we
have seen growth in annatto
Turn to ANNATTO, page 10 a
Continental Dairy
to add buttermilk
powder, butter
WASHINGTON — The 2016 and 2017 forecasts for cheese and
COOPERSVILLE, Mich. —
butter prices are lowered in USDA’s most recent “World AgriculContinental Dairy Facilities
tural Supply and Demand Estimates” report, released this week,
LLC, Coopersville, Michias supplies remain high. Meanwhile, prices for nonfat dry milk
gan, has announced a $50
(NDM) and whey are forecast higher as the global supply tightens
million expansion project
and demand strengthens.
for butter and buttermilk
Cheese now is projected to average $1.600-$1.620 per pound
powder at its Coopersville
in 2016, down from $1.610-$1.630 in last month’s report. In 2017,
plant. The expansion will
USDA forecasts cheese will average $1.605-$1.705, down from its
create 10 new full-time jobs
forecast of $1.615-$1.715 last month.
at the dairy.
Butter now is forecast to average $2.080-$2.120 in 2016, down
Continental Dairy Facilifrom the forecast range of $2.140-$2.180 in last month’s report.
ties
LLC was established in
In 2017, USDA forecasts butter will average in the $1.955-$2.085
2012
and is owned by Select
range.
Turn to EXPANSION, page 10 a
Turn to WASDE, page 10 a
®
© 2016 CHEESE MARKET NEWS — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber
without the express permission of Cheese Market News (For more information, contact [email protected])
2
CHEESE MARKET NEWS® — September 16, 2016
MARKET INDICATORS
Chicago Mercantile Exchange
CHEESE FUTURES for the week ending September 15, 2016
Cash prices for the week ended September 16, 2016
Monday
Sept. 12
Cheese Barrels
Price
Change
Tuesday
Sept. 13
Wednesday
Sept. 14
Thursday
Sept. 15
(Listings for each day by month, settling price and open interest)
Friday
Sept. 16
$1.5700
-3 1/2
$1.5500
-2
$1.5275
-2 1/4
$1.5200
-3/4
$1.4800
-4
Cheese 40-lb. Blocks
Price
$1.6500
Change
-6
$1.6650
+1 1/2
$1.6700
+1/2
$1.6700
NC
$1.6500
-2
Weekly average (Sept. 12-16): Barrels: $1.5295(-.1049); 40-lb. Blocks: $1.6610(-.0465).
Weekly ave. one year ago (Sept. 14-18, 2015): Barrels: $1.5530; 40-lb. Blocks: $1.6695.
Grade A NDM
Price
Change
$0.9050
NC
$0.9050
NC
$0.9075
+1/4
$0.9050
NC
$0.9100
+1/4
3,843
3,348
3,625
3,400
1,385
1,220
1,263
1,090
1,063
890
375
361
301
267
295
265
2
Mon., Sept. 12
1.755
1.728
1.712
1.681
1.663
1.668
1.674
1.677
1.698
1.714
1.733
1.740
1.749
1.748
1.750
1.740
1.739
3,825
3,375
3,656
3,427
1,391
1,232
1,276
1,101
1,067
897
379
361
301
267
295
265
2
292/23,117
Tues., Sept. 13
1.758
1.735
1.717
1.681
1.668
1.672
1.675
1.682
1.698
1.712
1.725
1.738
1.743
1.744
1.743
1.739
1.739
3,816
3,378
3,666
3,434
1,394
1,238
1,280
1,104
1,069
899
379
361
301
266
294
265
2
139/23,146
Wed., Sept. 14
1.758
1.725
1.719
1.681
1.669
1.672
1.678
1.682
1.698
1.712
1.725
1.738
1.743
1.744
1.743
1.739
1.739
Thurs., Sept. 15
3,795
3,344
3,657
3,423
1,418
1,266
1,305
1,124
1,089
919
379
361
301
266
294
265
2
1.755
1.729
1.723
1.690
1.670
1.673
1.678
1.682
1.698
1.715
1.725
1.738
1.743
1.744
1.743
1.739
1.739
317/23,208
3,772
3,328
3,663
3,424
1,427
1,292
1,326
1,124
1,089
919
379
361
301
266
294
265
2
278/23,232
Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.
$2.0325
NC
$2.0050
-1/2
$2.0100
-2 1/4
$2.0325
NC
$2.0000
-1/2
DRY WHEY FUTURES* for the week ended September 15, 2016
Weekly average (Sept. 12-16): Grade AA: $2.0160(-.0190).
Class II Cream (Major Northeast Cities): $2.4420(-.2108)–$2.6862(-.1738).
(Listings for each day by month, settling price and open interest)
Sign up for our daily fax or email service for just $104 a year. Call us at 608-288-9090.
Weekly Cold Storage Holdings
Butter
Cheese
1.768
1.756
1.741
1.697
1.670
1.670
1.675
1.678
1.698
1.716
1.737
1.740
1.749
1.748
1.750
1.740
1.739
Total Contracts Traded/
Open Interest 143/22,993
Weekly average (Sept. 12-16): Grade A: $0.9065(+.0021).
Grade AA Butter
Price
Change
Fri., Sept. 9
SEP16
OCT16
NOV16
DEC16
JAN17
FEB17
MAR17
APR17
MAY17
JUN17
JUL17
AUG17
SEP17
OCT17
NOV17
DEC17
JAN18
On hand
Monday
Week
Change
25,881
87,878
-1,500
-1,139
September 12, 2016
Change since Sept. 1
Pounds
Percent
-1,616
-1,143
-6
-1
Last Year
Pounds
Change
15,736
100,905
+10,145
-13,027
(These data, which include government stocks and are 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.)
Fri., Sept. 9
SEP16
OCT16
NOV16
DEC16
JAN17
FEB17
MAR17
APR17
MAY17
JUN17
JUL17
AUG17
SEP17
OCT17
30.250
35.000
36.075
37.000
38.475
39.475
39.000
39.325
39.000
39.500
39.000
39.250
39.275
39.300
634
538
495
461
270
252
251
240
214
227
71
73
59
56
Total Contracts Traded/
12/3,980
Open Interest
Mon., Sept. 12
30.250
35.000
36.000
37.000
38.475
39.475
39.000
39.325
39.000
39.500
39.000
39.250
39.275
39.300
634
537
507
461
275
257
258
245
219
232
76
78
64
61
75/4,053
Tues., Sept. 13
30.350
35.000
36.000
37.000
38.000
39.475
38.250
39.325
39.000
39.500
39.800
39.000
39.275
39.300
634
537
507
461
278
259
259
245
219
232
76
78
64
61
21/4,059
Wed., Sept. 14
634
544
507
460
278
259
262
245
219
232
76
78
64
62
30.350
35.000
35.800
36.700
37.800
38.175
38.000
38.500
38.500
38.750
38.800
39.000
39.275
39.300
Thurs., Sept. 15
30.350
34.500
35.800
36.700
37.800
37.500
38.000
38.500
38.500
38.750
38.800
39.000
39.275
39.300
43/4,069
634
553
507
460
278
260
262
245
219
232
76
78
64
62
20/4,079
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.
CLASS III PRICE
Dry Products*
(Dollars per hundredweight, 3.5% butterfat test)
YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
2010
2011
2012
2013
2014
2015
2016
14.50
13.48
17.05
18.14
21.15
16.18
13.72
14.28
17.00
16.06
17.25
23.35
15.46
13.80
12.78
19.40
15.72
16.93
23.33
15.56
13.74
12.92
16.87
15.72
17.59
24.31
15.81
13.63
13.38
16.52
15.23
18.52
22.57
16.19
12.76
13.62
19.11
15.63
18.02
21.36
16.72
13.22
13.74
21.39
16.68
17.38
21.60
16.33
15.24
15.18
21.67
17.73
17.91
22.25
16.27
16.91
16.26
19.07
19.00
18.14
24.60
15.82
16.94
18.03
21.02
18.22
23.82
15.46
15.44
19.07
20.83
18.83
21.94
15.30
13.83
18.77
18.66
18.95
17.82
14.44
NONFAT DRY MILK
Central & East:
low/medium heat $.8400(-1)-$.9700(+1);
mostly $.9000(+2)-$.9400(+2).
high heat $.9800-$1.0700.
West:
low/medium heat $.8400(-1/4)-$.9800(+3);
mostly $.9050(+1 1/2)-$.9350(+1/2).
high heat $.9500(+2)-$1.0600.
Calif. manufacturing plants: extra grade/grade A weighted ave. $.8612(+.0152)
based on 9,688,100 lbs.
WHOLE MILK POWDER (National):
STAFF
SUBSCRIPTION INFORMATION
Susan Quarne, Publisher
(PH 608/831-6002; FAX 608/831-1004)
email: [email protected]
Kate Sander, Editorial Director
(PH 509/962-4026; FAX 509/962-4027)
email: [email protected]
Alyssa Mitchell, Senior Editor
(PH 608/288-9090; FAX 608/288-9093)
email: [email protected]
Rena Archwamety, News/Web Editor
(PH 608/288-9090; FAX 608/288-9093)
email: [email protected]
Stephanie Awe, Assistant Editor
(PH 608/288-9090; FAX 608/288-9093)
email: [email protected]
Cheese Market News®, Publication #0598-030, (ISSN 08911509), is published weekly by Quarne Publishing LLC, P.O.
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FAX 608/288-9093. Periodicals postage paid at Madison,
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REGULAR CONTRIBUTORS
Creative Business Services, FCStone, International Dairy
Foods Association, Eric Meyer, National Milk Producers
Federation, Rice Dairy, John Umhoefer, U.S. Dairy Export
Council, WOW Logistics, Edward Zimmerman
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UHÁHFWWKRVHRI4XDUQH3XEOLVKLQJ//&GED&KHHVH0DUNHW
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IRU86ÀUVWFODVVGHOLYHU\LQFOXGLQJ&DQDGDDQG
International rate to all others. Printed in U.S.A.
September 16, 2016
$1.2900-$1.3500.
EDIBLE LACTOSE
(FOB)Central and West: $.2300-$.4050; mostly $.2800-$.3650(+1/2).
WHEY POWDER
Central:
West:
(FOB) Northeast:
nonhygroscopic $.2550-$.4000(+2);
mostly $.2750-$.3350.
nonhygroscopic $.2850-$.4000(+2);
mostly $.3000-$.3450(+1/4).
extra grade/grade A $.3000-$.3450(+1).
ANIMAL FEED WHEY (Central): Whey spray milk replacer $.2250-$.2750.
WHEY PROTEIN CONCENTRATE (34 percent): $.6000(+1/2)-$.8750;
mostly $.6700-$.7850(+1/2).
DRY BUTTERMILK
(FOB)Central & East: $.8300(+2)-$.8900.
(FOB) West:
$.8000(+2)-$.9200(+3); mostly $.8200-$.8700(+2).
CASEIN:
Rennet $3.0250(+1 1/2)-$3.0700; Acid $3.0400(+1/2)-$3.1000.
WEBSITE: www.cheesemarketnews.com
*Source: USDA’s Dairy Market News
®
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.
© 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber
without the express permission of Cheese Market News (For more information, contact [email protected])
September 16, 2016 — CHEESE MARKET NEWS®
NEWS/BUSINESS
3
MARKET INDICATORS
Prolamina celebrates completion of plant
renovation in Westfield, Massachusetts
WESTFIELD, Mass. — Global flexible packaging company Prolamina, a
division of ProAmpac, celebrated the
completion of its Westfield, Massachusetts, facility with a ribbon-cutting
ceremony this week.
More than 100 Prolamina employees,
friends, and state and local officials were
in attendance.
The event began with a word of welcome from Dave Hopkins, president of
commercial operations for Prolamina,
followed by remarks from Brian Sullivan, mayor of Westfield, who presented
Prolamina with a proclamation from the
city. Prolamina also received proclamations from state Sen. Don Humason and
state Rep. John Velis. Greg Tucker, CEO
for ProAmpac, concluded the ceremony
with a special thank you to employees,
state and local officials, and supporters
of the project.
The project included a 31,000-squarefoot facility renovation; replacement of
the 200,000-square-foot roof; improvement of the building’s air flow; and
additional manufacturing space.
Prolamina invested more than $4 million and allocated another $2.9 million for
future equipment upgrades. Prolamina’s
Westfield facility has been in operation
for more than 30 years, and although the
building has seen improvements in the
past, a refurbishment of this magnitude
has never been done, the company says.
“The facility improvements are necessary to remain a leader in the markets
we serve,” Tucker says. “Along with exterior and interior beautification, there
is improved facilitywide technology and
green initiatives.”
Prolamina’s Westfield facility employs more than 250 people and operates
24 hours a day, seven days a week. CMN
RETAIL PRICES
Percent change versus
(Consumer Price Index*)
August 2016 1 mo. 6 mo. 1 year 2 years
Cheese & related products
-4.8
-0.1
226.399
-2.4
-2.2
Dairy & related products
-4.8
+0.4
215.506
-2.4
-1.9
All Food
+1.6
+0.1
247.719
-0.4 +0.0
*Source: U.S. Department of Commerce. For index, prices during 1982-84 = 100.
International Dairy Markets
September 16, 2016
For more information please visit www.devilletechnologies.com
CME FUTURES for the week ended September 15, 2016
Class III Milk*
SEP16
OCT16
NOV16
DEC16
JAN17
FEB17
MAR17
APR17
MAY17
JUN17
JUL17
AUG17
SEP17
OCT17
NOV17
Fri., Sept. 9
Mon., Sept. 12
16.51
16.70
16.59
16.20
15.96
16.01
16.04
16.12
16.26
16.43
16.66
16.81
16.85
16.92
16.87
16.43
16.43
16.35
16.05
15.90
15.95
16.03
16.12
16.24
16.42
16.65
16.77
16.85
16.92
16.86
5,214
4,938
4,183
3,448
1,806
1,810
1,669
1,487
1,330
1,229
719
634
571
446
407
Total Contracts Traded/
Open Interest 746/30,386
Butter: 82 percent butterfat $4,100(+200)-$4,300(+200).
Butteroil: 99 percent butterfat $3,975(-75)-$4,450(-50).
Skim Milk Powder: 1.25 percent butterfat $2,150(+100)-$2,250(+100).
Whole Milk Powder: 26 percent butterfat $2,750(+100)-$2,900(+100).
Whey Powder: Nonhygroscopic $850(+50)-$925(+25).
Oceania
Butter: 82 percent butterfat $3,850(+650)-$4,000(+400).
Cheddar Cheese: 39 percent maximum moisture $3,400(+200)-$3,625(+125).
Skim Milk Powder: 1.25 percent butterfat $2,275(+275)-$2,300(+100).
Whole Milk Powder: 26 percent butterfat $2,750(+150)-$2,950(+50).
SEP16
OCT16
NOV16
DEC16
JAN17
FEB17
MAR17
APR17
MAY17
JUN17
JUL17
Fri., Sept. 9
Mon., Sept. 12
14.31
14.96
15.44
15.47
15.53
15.75
15.94
16.16
16.36
16.44
16.66
14.26
14.96
15.44
15.45
15.53
15.75
15.94
16.16
16.36
16.44
16.66
408
510
514
450
234
236
236
187
161
178
74
Total Contracts Traded/
Open Interest
23/3,845
Source: Dairy Market News. Prices reported in U.S. dollars per metric ton, F.O.B. port. To convert
to price per pound: divide price by 2,204.6 pounds.
National Dairy Products Sales Report
Cheese 40-lb. Blocks:
Average price1
Sales volume2
Cheese 500-lb. Barrels:
Average price1
Adj. price to 38% moisture
Sales volume2
Moisture content
Butter:
Average price1
Sales volume2
Nonfat Dry Milk:
Average price1
Sales volume2
Dry Whey:
Average price1
Sales volume2
*
9/10/16
9/3/16
$1.7958
12,643,660
$1.8251
14,532,599
$1.8445
$1.7613
10,390,836
35.07
*$1.9670
*$1.8765
*9,243,193
*35.01
8/27/16
8/20/16
$1.8078
14,533,164
$1.7756
13,608,846
$2.0033
$1.9057
8,873,736
34.83
$1.9737
$1.8816
10,344,607
34.96
$2.1204
2,423,041
$2.2202
2,552,706
$2.2444
3,111,520
$0.8819
$0.8533
13,357,797 *25,404,021
$0.8644
16,489,078
$0.8660
*13,158,852
*$0.2926
*7,001,043
$0.2817
8,662,815
$2.0982
1,974,896
$0.2973
7,083,257
*$0.2976
*6,145,046
1,534/30,515
Tues., Sept. 13
16.47
16.50
16.45
16.11
15.87
15.93
15.99
16.11
16.23
16.46
16.57
16.65
16.69
16.70
16.69
Wed., Sept. 14
5,088
4,960
4,270
3,522
1,840
1,839
1,709
1,499
1,371
1,268
732
651
588
451
413
16.45
16.47
16.42
16.13
15.92
15.95
16.07
16.11
16.25
16.46
16.59
16.66
16.71
16.73
16.71
1,007/30,701
5,078
4,934
4,262
3,508
1,863
1,860
1,732
1,534
1,398
1,293
733
676
590
451
413
731/30,825
Thurs., Sept. 15
16.41
16.33
16.40
16.12
15.92
15.99
16.13
16.13
16.25
16.46
16.60
16.68
16.73
16.77
16.73
5,086
5,013
4,269
3,510
1,864
1,870
1,750
1,534
1,398
1,293
735
678
592
452
416
1,088/30,963
Class IV Milk*
Western Europe
For the week ended:
5,138
4,925
4,243
3,496
1,824
1,817
1,671
1,490
1,357
1,249
724
643
581
449
410
/Revised. 1/Prices weighted by volumes reported. 2/Sales as reported by participating manufacturers.
Reported in pounds. More information is available by calling AMS at 202-720-4392.
408
510
509
445
234
236
236
187
161
178
74
10/3,835
Tues., Sept. 13
14.26
14.96
15.38
15.45
15.53
15.75
15.94
16.16
16.36
16.44
16.66
Wed., Sept. 14
408
510
510
445
234
236
236
187
161
178
74
14.24
14.93
15.37
15.44
15.45
15.75
15.88
16.16
16.36
16.44
16.66
2/3,836
408
510
510
451
234
236
236
187
161
178
75
33/3,859
Thurs., Sept. 15
14.24
14.72
15.22
15.33
15.45
15.75
15.88
16.16
16.36
16.44
16.66
408
510
510
451
234
236
236
187
161
178
75
16/3,859
Cash-Settled NDM*
SEP16
OCT16
NOV16
DEC16
JAN17
FEB17
MAR17
APR17
MAY17
Fri., Sept. 9
Mon., Sept. 12
Tues., Sept. 13
88.250 1,023
94.500 867
100.400 788
103.000 872
106.500 248
108.300 159
111.500 179
114.325 161
116.575 113
88.250 1,022
94.600 873
99.900 759
103.000 876
106.500 248
108.325 160
111.500 179
114.325 161
116.575 113
88.475 1,021
94.800 886
100.000 762
103.500 884
106.500 248
108.325 160
111.500 179
114.325 161
116.575 113
Total Contracts Traded/
Open Interest 135/4,887
83/4,868
Wed., Sept. 14
Thurs., Sept. 15
88.500
94.500
100.250
103.350
106.500
108.325
111.500
114.325
116.575
88.425
94.250
100.500
103.500
107.225
109.250
111.925
114.325
116.575
50/4,891
997
887
764
889
248
160
179
161
113
80/4,876
998
869
766
889
250
162
181
161
113
67/4,872
Cash-Settled Butter*
Fri., Sept. 9
Mon., Sept. 12
Tues., Sept. 13
Wed., Sept. 14
Thurs., Sept. 15
1,448
1,460
1,478
820
272
220
222
148
138
139
208.000 1,448
211.075 1,466
210.600 1,481
821
205.275
272
198.750
220
198.775
222
199.750
148
200.000
138
200.525
139
200.550
207.850 1,448
211.500 1,468
211.600 1,491
838
206.450
272
198.750
220
198.775
222
199.750
151
200.000
138
200.525
139
200.550
207.000 1,449
210.000 1,483
209.775 1,503
204.000 839
198.525 277
199.000 217
199.750 222
200.000 151
200.525 138
200.550 140
206.750 1,449
206.000 1,528
206.750 1,517
840
202.350
281
198.000
217
198.500
222
199.500
151
200.000
138
200.525
140
201.000
Total Contracts Traded/
Open Interest
189/6,676
25/6,686
70/6,718
105/6,750
184/6,814
SEP16
OCT16
NOV16
DEC16
JAN17
FEB17
MAR17
APR17
MAY17
JUN17
208.300
211.575
211.250
205.125
198.025
198.525
199.250
200.000
200.525
200.525
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.
© 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber
without the express permission of Cheese Market News (For more information, contact [email protected])
4
CHEESE MARKET NEWS® — September 16, 2016
GUEST COLUMNIST
CMN Exclusive!
Perspective:
Dairy Markets
Trevor W. Slegers is a risk management advisor at Rice Dairy*, a brokerage firm in Chicago that specializes in dairy and markets at dairy’s
periphery. He contributes this column exclusively for Cheese Market
News®.
The ‘longest’ participant
in dairy: the European Union
Every year or so there seems to be one
over-arching theme that the dairy market
focuses on domestically or internationally. In early 2015 the focus was on New
Zealand and its milk production. At the
time, the threat of a drought pushed
the U.S. spot nonfat dry milk (NDM)
price more than 20 cents higher in less
than one month. After that move, folks
who had never heard of pasture growth
indexes in their life were rushing to the
nearest Bloomberg Terminal to chart its
every move. This year though, while the
subject remains international, the focus
moves to the European Union (EU).
At present, there are a couple of
different elements driving the market,
which are causing repercussions back
here in the United States. First, the much
anticipated removal of quota, which was
made official April 1, 2015, increased
milk production across the continent.
Prices did what prices usually do
when supply runs rampant and took a
nosedive.
Ultimately that lead to the second aspect of the EU market that my colleagues,
other peers in the industry and myself
have been forced to pay close attention
to: public intervention. Questions on its
specific workings, effects on the market
and game-plans going forward have been
flooding in-boxes and have been the point
of many conversations worldwide. At its
core, public intervention is used as one
of the tools by the European Commission to help farmers and stabilize price.
While it has been available in both skim
milk powder (SMP) and butter markets,
powder is the product that has used its
capabilities to its full potential for the
better part of a year and a half. Over
that period of time, more than 300,700
metric tons (as of Aug. 29) have been offered into the program. Now that current
market prices are trading clear above the
intervention level, market participants
are wondering where we go from here and
what will happen to powder currently
sitting in storage.
Intervention first came into play in
the summer months of 2015 when prices
grinded to levels not seen since 2009.
Underlying fundamentals surrounding
the market spelled bearishness for the
months leading up to the 31-year long
milk quota officially coming to an end,
resulting in a sharp increase in milk
production across the continent. Add to
that the ongoing issue of Russia being out
of the market because of its import ban,
more milk going to SMP production and
China’s once insatiable demand for dairy
depleting, and in the minds of farmers
you end up with a trigger for subsidies.
Increased milk production by those
farmers in the late-2015 to early-2016
months led to increases of 5 percent
to almost 10 percent by February for
EU-28 countries. After the powder EEX
futures price rose to more than 2,300
euros per metric ton (due to the aforementioned threat of drought in Oceania)
prices spent the spring and early summer
tumbling more than 25 percent, falling
to 1,675 euros per metric ton by early
autumn.
Cue the commission buying. At a fixed
price of 1,698 per metric ton ($0.87/lb.
in today’s market) product began being
offered into intervention. By the end
of 2015, total volume reached 41,328
metric tons, then reset for the new year.
Throughout this year, volume continued
to pour into the government scheme in
an effort to support prices. Initially the
scheme was scheduled to end by the end
of September, but with market conditions remaining largely unchanged, the
EU announced an extension until the
end of this year when it will most likely
reset and remain open until the end of
September 2017. Not only was the commission forced to put through multiple
extensions, but it also was pressured
to raise the ceiling of product from
109,000 metric tons to 218,000 metric
tons on April 20, only to be lifted again
on June 30 to where it stands now at
350,000 metric tons, more than 3 times
the original limitation.
So, as it currently stands, the EU holds
the largest inventory of SMP in the world.
Furthermore, everyone knows this. As
the government is not an end user, the
product must return to the market. The
question now is, with current spot and
futures prices trading above intervention
levels, when and how will product held in
inventory come out to the marketplace?
Unfortunately, there is no clear answer. We can look at history, when back
in 2009, the government waited until
prices got to 2,300 euros per metric
ton before releasing product, but that
is no guarantee it will do the same this
go around. Speculation and rumors are
that the government will almost always
try to make intervention a profitable
service, waiting for the opportune time
to commence the sell-back. On a positive
note, the European Commission itself is
a consumer of dairy, through various food
and aid programs, so there is in some
respects an alternative to a bulk release
of product on the market. Additionally,
time is on its side given product must be
less than 3 months old to be accepted
in the program and shelf life exceeds 3
years, if stored properly.
At the end of the day, will the market be resilient enough to take on the
excess powder currently not in the
marketplace? The opportunistic side
of me believes it will. While supply has
massively out-paced demand, demand
itself has been healthy, and as the two
forces come back into line, there is reasonable cause to believe that the surplus
will eventually be absorbed. The latest
figures of the amount of powder going
into intervention have diminished to
116 metric tons for week of Sept. 5, as
the trend continues to zero.
Thanks to EU milk production seeing more rebalance, the EEX futures
have bounced back nicely, pricing
the rest of the year between 2,1402,200 euros per metric ton and even
reaching 2,300 euros per metric ton
by mid-2017. The Oceania market has
picked up steam as well with Global
Dairy Prices seeing three consecutive
positive auctions. Overall it seems as
though global demand for powder is
starting to pick back up after being absent for some time, which is welcomed
words for the “longest” participant
in dairy: the European Union. CMN
The views expressed by CMN’s guest
columnists are their own opinions
and do not necessarily reflect those of
Cheese Market News®.
*These observations include information from
sources believed to be reliable, but no independent
verification has been made and therefore their accuracy and completeness cannot be guaranteed.
Opinions and recommendations expressed are the
opinion of the authors and are subject to change
without notice. The risk of loss in trading futures
contracts or commodity options can be substantial,
and investors should carefully consider the inherent
risks of such an investment in light of their financial
condition. The views expressed by CMN’s guest columnists are their own opinions and do not necessarily
reflect those of Cheese Market News®.
NEWS/BUSINESS
USDA awards cheese contracts, seeks more
KANSAS CITY, Mo. — USDA recently announced it will be purchasing cheese from
Associated Milk Producers Inc. (AMPI),
Dairy Farmers of America (DFA) and
Saputo Cheese USA in support of USDA
domestic food distribution programs.
AMPI will supply 316,800 pounds of
6/5-pound regular process cheese loaves
for a price range of $1.9400-$1.9950 per
pound for a total of $622,512. The cheese
will be delivered Nov. 16-Dec. 31, 2016.
In addition, DFA will supply 322,560
pounds of 8/6-pound frozen low-moisture part-skim Mozzarella loaves for
$584,059, and Saputo will supply 604,800
pounds of the same cheese type for $1.01
million. All told the cheese will be sold
to USDA for $1.6643-$1.8285 per pound
for a total of $1.59 million. The cheese
will be delivered Oct. 1-Nov. 30, 2016.
This week, USDA also solicited an
additional 98.1 million pounds of Mozzarella in various formats. Offers to
supply the product are due in Kansas
City by 9 a.m. Central Time Sept. 23.
USDA also is soliciting an additional
60.2 million pounds of process cheese
in various formats. Offers are due in
Kansas City by 9 a.m. Sept. 29.
For more information, visit https://portal.wbscm.usda.
gov/publicprocurement. CMN
© 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber
without the express permission of Cheese Market News (For more information, contact [email protected])
September 16, 2016 — CHEESE MARKET NEWS®
CHEESE MARKET NEWS
5
®
Retail WATCH
NEWS & MARKETING IDEAS TO HELP SELL MORE CHEESE
BelGioioso moves forward with
classic cheeses, new creations
By Kate Sander
GREEN BAY, Wis. — Providing consumers with top quality Italian cheeses
in convenient formats continues to be
the hallmark of BelGioioso Cheese Inc.,
a family-owned Italian cheese company
based in Green Bay, Wisconsin.
“Quality cheese speaks for itself,”
says Gaetano Auricchio, BelGioioso vice
president, who notes that the company’s
commitment to tradition and excellence
carries with it the value of knowing how
to make Italian cheeses just as they
were made long ago from recipes passed
down by generations. “We’re consistent,
we provide great customer service and
have fair pricing.”
Though the company has grown
tremendously in the nearly 40 years
since Gaetano Auricchio’s father, Errico,
moved from Italy to the United States to
pursue cheesemaking on this side of the
Atlantic, the passion for tradition and
quality has never diminished.
BelGioioso Cheese currently operates eight locations in Wisconsin
with a ninth cheesemaking operation
in New York. Last year, the company
completed an expansion of its packaging facility in Ledgeview, Wisconsin,
and a brine capacity expansion at its
Chase, Wisconsin, plant. This year, the
company continues to add to its Ledgeview facility, expanding its shipping
and distribution areas.
Tradition, selection of ingredients,
location and artisan inspiration are pillars of what makes BelGioioso Cheese
a strong business, Gaetano Auricchio
says, noting another of the company’s
strengths is that it does all of its own
converting.
“We have unique control of the process from A to Z,” he says.
In recent years, the company has
codified these thoughts into its “9
Secrets of BelGioioso.” Prominently
highlighted on the company’s website,
these nine secrets ultimately define who
the company is.
The first secret — History, Tradition,
Passion and Family — is evident the
moment the Auricchios begin discussing their business. In fact, “secret”
is a bit of a misnomer; in reality, the
secrets are what the company strives
to achieve each day.
“It’s our story; it’s who we are and
Also in Retail WATCH:
what we do each day,” Auricchio says
of the nine secrets. “It’s a collaborative
document, and each secret is important
to our overall success.”
Many of the secrets pertain to quality milk and artisan cheesemaking
methods. This begins with using milk
from dairy farms located near each of
the company’s plants.
“We start with fresh milk and our own
starter cultures. We have control over
our ingredients and can refine recipes
if needed,” Auricchio says.
BelGioioso’s cheeses range from the
traditional — the company is a leader
in Provolone, Parmesan and Fresh
Mozzarella sales — to new creations
from the company’s Wisconsin Master
Cheesemakers.
Provolone is the first cheese the
company produced when it started
in 1979. It is made from a traditional
family recipe. All of it is aged, with Mild
a minimum of 60 days, Medium a minimum of 5 months, Sharp a minimum of
7 months and Extra Sharp a minimum
of 12 months. The company also has a
24-month aged Provolone. The extra
aged Provolone has the most intense
aroma, and the flavor is spicy, nutty,
sharp and earthy.
The company also is known for its
American Grana — a cheese it says is a
combination of Old World craftsmanship
with New World ingenuity. The cheese is
formed into 70-pound wheels and aged
a minimum of 18 months. Each wheel
is cleaned and turned during the aging
process, which helps develop layers of
sweet, nutty flavor and a deep aroma.
The flavor engages the whole palate
without becoming overwhelming, the
company says.
The company’s Parmesan, which
Auricchio says is uniquely made with the
company’s proprietary starter cultures,
is aged a minimum of 10 months with
the wheels hand-turned throughout
the aging process for consistent flavor
development. The cheese has sweet,
nutty tones with a pleasant finish, the
company says.
While Provolone and Parmesan are
somewhat standard cheeses in the industry, Auricchio is quick to note that
“not all Parmesan and Provolones are
created equal.”
The company also offers a completely
different taste profile with its clean-
Photo courtesy of BelGioioso Cheese Inc.
CUSTOM CREATION — To reach consumers looking for high-end artisan cheeses, BelGioioso recently introduced its La Bottega line, which includes a number of specialty cheeses
including its custom-created La Bottega di BelGioioso Artigiano. Artigiano is created in
small batches and cured using proprietary, artisan methods to achieve its delicate crystalline texture and nutty and sweet flavor.
flavored pearl-white BelGioioso Fresh
Mozzarella, which is available in a
number of different sizes. Setting itself
apart from the competition, BelGioioso
has won numerous awards over the years,
with its Fresh Mozzarella leading the
way. Recent awards for the company include first place for Burrata, Ricotta con
Latte and Fresh Mozzarella Prosciutto
Basil Roll in the World Championship
Cheese Contest. At this summer’s
American Cheese Society competition,
the company also received a first place
with its Fresh Mozzarella.
BelGioioso Cheese’s Gorgonzola also
continues to do well, and currently the
company makes three types: CreamyGorg, Crumbly Gorgonzola and Crumbly
Gorgonzola with Cow & Sheep’s milk.
CreamyGorg, a BelGioioso Cheese
registered trademark, is a Gorgonzola
Dolce, an Italian recipe which starts
with soft, large, high-moisture curds
that are delicately hand scooped into
the wheel molds. The cheese is placed
in a high-moisture environment where
it starts to ferment and expand. The
wheels are then pierced to allow oxygen to enter and the mold to grow. The
cheese is aged 90 days and also receives
a repeated hand washing with brine
throughout this process. The cheese
is creamy soft and spreadable with an
earthy subtle flavor.
BelGioioso’s Crumbly Gorgonzola
has a drier, crumbly curd and is pressed
into wheels. This cheese also spends
time in a high-moisture environment
and is pierced to help develop mold and
aged for 90 days. The texture is firmer
and drier than the CreamyGorg and has
a more robust flavor. The sheep’s milk
Gorgonzola is made in a similar way,
but with a different end result, with the
Turn to BELGIOIOSO, page 7 a
Global Cheese Awards named … Page 6 Marin French, Laura Chenel’s add spicy cheeses … Page 8
© 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber
without the express permission of Cheese Market News (For more information, contact [email protected])
6
RETAIL ROUND-UP
CHEESE MARKET NEWS® — September 16, 2016
U.S. per capita cheese consumption hits 35 pounds, USDA’s Economic Research Service says
consumption of selected cheese varieties
at the end of the month.
For all dairy products on a milk
equivalent, milkfat basis, per capita
consumption totaled 627 pounds, up 13
pounds from 2014, ERS says. Per capita
consumption of dairy products has stayed
above 600 pounds since 2005.
The overall gains are despite a decline in
fluid milk consumption. ERS reports per
capita consumption of beverage milks
declined to 155 pounds in 2015, down 4
WASHINGTON — U.S. per capita cheese
consumption in 2015 reached a record
35.0 pounds, up from 34.1 pounds in 2014,
according to data recently released by
USDA’s Economic Research Service (ERS).
In the recent report, ERS says American-type cheese per capita consumption
was 14.0 pounds in 2015, up from 13.6
pounds in 2014, and per capita consumption of other types of cheese rose to 21.0
pounds, up from 20.5 pounds in 2014.
ERS will release a report on per capita
Schuman Cheese to launch Cheddar Whisps
“Cheddar Whisps, along with our
popular Parmesan Whisps, highlight
Schuman Cheese’s commitment to delivering an innovative, addictive, glutenand wheat-free, pure cheese snack that
contains only a single ingredient — our
very own cheese,” says Ilana Fischer, vice
president of innovation and strategy,
Schuman Cheese.
Schuman Cheese will offer samples
of both flavors of Whisps, along with its
Cello Copper Kettle Parmesan used to
make Cello Parmesan Whisps, Sept. 2224 at booth 6866 during Natural Products
Expo East.
Cello Whisps are available both
at retail and for foodservice markets. For more information, visit
http://cellowhisps.com.
CMN
FAIRFIELD, N.J. — Schuman Cheese
recently announced plans to launch
new Cello Cheddar Whisps while showcasing its Cello Whisps product line
later this month at Natural Products
Expo East in Baltimore.
Cello Whisps are crafted by artisan
cheesemakers in Wisconsin and contain
no artificial colors or flavors. Cello Parmesan Whisps are made with shavings of
100-percent pure 14-month-old Parmesan,
baked into airy and crispy “whispy” bites.
Due to overwhelming consumer feedback,
Schuman Cheese says, the company has
expanded its Whisps line to include Cello
Cheddar Whisps made from Cello Cheddar
Cheese. The new product already has won
a gold medal at the 2016 World Championship Cheese Contest held earlier this year.
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pounds from 2014. Other than one year
of a small increase and one year of no
decline, consumption of fluid milk has
steadily declined since 1975, the first
year listed in this ERS report, when it
was 247 pounds.
Meanwhile, per capita butter consumption in 2015 rose to 5.6 pounds,
up from 5.5 pounds. Per capita butter
consumption jumped from 4.9 pounds
in 2010 to 5.4 pounds in 2011, then held
at 5.5 pounds from 2012 through 2014.
Per capita yogurt consumption
dropped 0.1-pound to 14.7 pounds in
2015. Per capita yogurt consumption
has been above 10 pounds since 2005
and rose to 14.9 pounds in 2013 before
dropping 0.1-pound in the last two years,
according to ERS.
Per capita consumption of cottage
cheese, which is not included in the
cheese total, was 2.1 pounds in 2015,
the same as the two previous years. Per
capita cottage cheese consumption has
been on a downward trend over the last
40 years; in 1975 it was 4.6 pounds.
ERS reports per capita regular ice
cream consumption rose 0.4-pound
from a year earlier to 13.1 pounds in
2015. Despite the increase, per capita
regular ice cream consumption also has
generally declined since 1975, when it
was 18.2 pounds.
Per capita reduced-fat ice cream
consumption was 6.5 pounds in 2015,
up from 6.3 pounds in 2014. Per
capita reduced-fat ice cream consumption was 7.7 pounds in 1975. CMN
Sartori Co., Joseph Gallo Farms awarded
medals at England’s Global Cheese Awards
FROME, England — A Blue Stilton
from England’s Long Clawson Dairy
was named Champion out of more
than 1,000 entries at the 2016 Global
Cheese Awards, which took place here
Sept. 8. Reserve Champion went to
Gorgonzola Piccante PDO from Italy’s
Cairati Creamery, distributed by Castelli
UK Ltd.
Blue Stilton from Long Clawson
Dairy also received UK Supreme Champion and Reserve Champion awards.
Sartori Co. of Plymouth, Wisconsin,
won the gold medal for Best USA Cheese
with its Sartori Reserve SarVecchio
Parmesan. Joseph Gallo Farms, Atwater,
California, earned the silver and bronze
medals in this category for its part-skim
Mozzarella and whole-milk Mozzarella,
respectively.
Sartori’s Reserve SarVecchio Parmesan also won a gold medal for Best
Non-EU Cheese and a bronze in the
Cheese with Health Benefit class.
Sartori Classic Parmesan won gold and
Sartori Classic Asiago won bronze for
Best Italian-Style Hard Cheese, while
Sartori swept the gold, silver and bronze
medals with its Reserve BellaVitano
Gold, Reserve Kentucky Bourbon BellaVitano and Limited Edition Cognac
BellaVitano, respectively, in the Other
Overseas Cheese class open to nonEuropean countries.
Sartori Reserve Balsamic BellaVitano
won silver in the Cheese with Sweet Additives class; Sartori Reserve Chipotle
BellaVitano won silver in the class for
Cheese Brought to Market in the Past
12 Months; and Sartori Limited Edition
Pastorale Blend tied for bronze in the
Best Mixed Milk Hard Cheese class.
Joseph Gallo Farms also won a
number of awards, including gold for its
Pepper Jack, named Best USA Cheese
with Additives, and silver for its Sharp
Cheddar under Best USA Cheddar (no
gold or bronze medals were awarded
in this class). Joseph Gallo Farms also
won gold in the Mild Cheddar class,
silver and bronze in the Overseas
Organic Cheddar class, bronze in the
Medium Cheddar class and bronze
in the Mature Cheddar class. CMN
Reichert’s Dairy Air wins Iowa State Fair
contest with its Torta a Strattie du Latte
DES MOINES, Iowa — Farmstead
goat’s milk cheesemaker Reichert’s
Dairy Air of Knoxville, Iowa, won Best
of Show honors for its Torta a Strattie
du Latte at the new Iowa Quality Dairy
Products Contest, judged prior to the
start of the 2016 Iowa State Fair.
Results in each of the contest’s
classes include:
Butter
First: Kalona SuperNatural, Kalona,
Iowa, Kalona SuperNatural Organic
Lightly Salted Butter.
Second: Kalona SuperNatural, Kalona, Iowa, Kalona SuperNatural Organic
Unsalted Butter.
Cultured Dairy Products
First: Country View Dairy, Hawkeye,
Iowa, Plain 1-percent Yogurt.
Second: Country View Dairy, Hawkeye, Iowa, Strawberry Cream-Top
Yogurt.
Third (tie): Country View Dairy,
Hawkeye, Iowa, Raspberry Cream-Top
Yogurt.
Third (tie): Country View Dairy,
Hawkeye, Iowa, Vanilla Cream-Top
Greek Style Yogurt.
Goat/Sheep Milk Cheeses:
First: Reichert’s Dairy Air, Knoxville,
Iowa, Torta a Strattie du Latte.
Second: Reichert’s Dairy Air, Knoxville, Iowa, Robiola di Mia Nonna.
Third: Doe’s and Diva’s Dairy Inc.,
Honey Creek, Iowa, Feta with Basil.
Cow Milk Cheese
First: Cinnamon Ridge Farms,
Donahue, Iowa, Tomato Basil Garlic
Cheese Curds.
Second: Cinnamon Ridge Farms, Donahue, Iowa, Whiskey Mustard Cheese
Curds.
Third: Frisian Farms Cheese, Leighton, Iowa, Gouda Curds.
CMN
© 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber
without the express permission of Cheese Market News (For more information, contact [email protected])
RETAILING PERSPECTIVES
September 16, 2016 — CHEESE MARKET NEWS®
addition to all required state and federal
certifications, BelGioioso’s facilities
have received SQF (Safe Quality Foods)
Level 3 certification, the highest level of
food safety certification possible.
“The procedures we have in place allow us to trace the cheese from the farm
to the retailer’s shelf and beyond. It is a
testament to our commitment to produce
safe, quality cheese,” Auricchio says.
“Quality never stops” is the secret
that is taking BelGioioso into the future.
Just as his great-grandfather taught him
the secrets to making quality cheese,
Errico Auricchio is continuing the legacy
by passing on these artisan methods to
his children. Through Errico’s children,
BelGioioso will continue to grow and will
never lose its passion.
When asked what the company’s
goals are for 2017, Gaetano Auricchio
puts it simply: “To continue making top-quality cheeses!”
CMN
BELGIOIOSO
Continued from page 5
sheep’s milk creating a slightly creamy
texture and distinct full flavor.
Many of these cheeses are included
in the company’s retail marketing
programs this year. An “Eat Well”
campaign in the spring promoted Fresh
Mozzarella, Ricotta con Latte and
Mascarpone. The company’s summer
promotion highlighted a “Salad Savvy”
theme promoting convenient shreds,
grates, shaves and crumbles. This fall’s
promotion is “Tastefully Easy Entertaining” including table cheese wedges,
Provolone, Crescenza-Stracchino,
Marinated Fresh Mozzarella, Unwrap &
Roll and Fresh Mozzarella, Prosciutto
and Basil Roll.
Capitalizing on America’s snacking
trend, BelGioioso continues to focus
on making these cheeses in consumerfriendly formats.
Its award-winning Fresh Mozzarella
is available in grab-and-go 1-ounce packages of three Ciliegine balls, perfect for
snacking and only 70 calories per serving. The company also has introduced a
0.75-ounce snacking size for its Fontina
and has created a 3-ounce Mini Mascarpone cup designed for freshness and
convenience and a 5-ounce Mini Ricotta
single-serve cup.
While BelGioioso only utilizes a
minimal amount of anti-caking agents
in products when needed, in response
to some consumers’ and chefs’ concerns about the category, the company
recently introduced a new Natural line
of shredded and grated cheeses in both
foodservice and retail sizes. The selection of shredded, grated and shaved
cheeses are packed in unique, lightweight, re-sealable cups and contain
just three ingredients — milk, enzymes
and salt — and no anti-caking agents
or preservatives.
To reach consumers looking for
high-end artisan cheeses, BelGioioso
this summer also introduced its custom-created La Bottega di BelGioioso
Artigiano. Artigiano is created in small
batches and cured using proprietary,
artisan methods to achieve its delicate
crystalline texture and nutty and sweet
flavor. Available in a Classico variety as
well as Vino Rosso and Aged Balsamic
& Cipolline Onion flavors, the cheese
is available in whole wheels for cutand-wrap programs or pre-cut 4-ounce
exact-weight wedges.
The cheese is being marketed under
the La Bottega di BelGioioso brand,
a new line of small pieces of handselected superior quality cheeses that
ensure consistency and the best flavor,
texture, aroma and authenticity. Other
cheeses in the line include CrescenzaStracchino, American Grana, Provolone
Extra, Peperoncino and cow and sheep’s
milk blended Gorgonzola.
Another of the company’s secrets is
its food safety practices, and despite
rapid growth BelGioioso Cheese has
maintained a commitment to traditional cheesemaking while adopting
modern procedures that guarantee the
consistency and safety of the cheeses. In
Photo courtesy of BelGioioso Cheese Inc.
PROVOLONE VARIETY — BelGioioso Cheese’s Provolone is made from a traditional family
recipe. All of it is aged, with Mild a minimum of 60 days, Medium a minimum of 5 months,
Sharp a minimum of 7 months and Extra Sharp a minimum of 12 months. The company
also has a 24-month aged Provolone.
The per fect
70 cal or ie sna
cks
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DUHWKHXOWLPDWHJUDEDQGJRVQDFN²SDFNHGZLWK
SURWHLQDQGFDOFLXPDWRQO\FDORULHV
7DVWHWKHIUHVKQHVVDQGHQMR\WKHFRQYHQLHQFH
877.863.2123
belgioioso.com/eatwell
rBST Free* | Gluten Free | Vegetarian | Antibiotic Free
*No significant difference has been found in milk from cows treated with artificial hormones.
For more information please visit www.belgioioso.com
®
7
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without the express permission of Cheese Market News (For more information, contact [email protected])
8
THE CHEESE TABLE
CHEESE MARKET NEWS® — September 16, 2016
NFL, National Dairy Council announce renewed commitment for youth health, wellness
DENVER — The National Football
League (NFL) and its partners recently announced a renewed commitment to the “Hometown Grants”
program. The initiative, developed
by the NFL and Fuel Up to Play 60 in
2014, provides grants to support physical activity and nutrition programs in
school districts in all 32 NFL markets.
This year the National Foundation
on Fitness, Sports and Nutrition will
join the partnership, which, as of press
time, has provided nearly $1 million to
schools across the nation.
Through the Hometown Grants program, NFL teams and state/regional dairy
organizations identify deserving schools
in their communities to receive funding
Yellow Door Creamery offers cooking cheese
NEW YORK — Results from “Cooking
with Cheese at Home,” a survey by Yellow
Door Creamery, a new brand of Schuman
Cheese (See “Schuman Cheese — new
name highlights 70 years of quality,
moves business into the future” in the
June 24, 2016, issue of Cheese Market
News), have revealed that cheese remains
a staple of the American diet, but that its
odor, mess and difficulty to preserve deters some customers from cooking with it.
Among other findings, the survey
revealed that nearly 90 percent of consumers feel that cheese enhances the
overall taste and presentation of a dish,
more than 80 percent of respondents
eat cheese either every day or multiple
times a week but avoid cooking with it
at home, and 70 percent of consumers
reported they would cook with cheese
more often if negative qualities were
able to be avoided.
To address the survey results, Yellow
Door Creamery has delivered a line of
options to home chefs that aim to resolve
issues typically associated with cheese.
Now, consumers can enjoy sliceable,
portioned for single use, dust-free and
non-clumping cheese.
“Yellow Door Creamery believes that
cooking at home should be enjoyable,
with taste a kitchen priority,” says Ilana
Fischer, vice president of innovation
and strategy, Schuman Cheese. “The
Yellow Door Creamery’s one-of-a-kind
collection not only appeals to the senses
through its unique flavor profiles, but
it’s trendsetting approach will hopefully
encourage consumers to enjoy cooking
in their own homes.”
Schuman Cheese recently launched
Yellow Door Creamery to complement its flagship brand, Cello, as a
platform for experimentation. CMN
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to help encourage physical activity and
healthy eating programs for students.
The program has provided more than
700 schools with funds and resources.
“Mobilizing communities to advocate
for and implement healthy changes in
schools nationwide requires collaboration at the local and national level,” says
Mark Leitner, executive vice president,
Fuel Up to Play 60. “Fuel Up to Play 60
is making an impact in schools through
the unwavering support of the NFL and
leaders like the National Foundation on
Fitness, Sports and Nutrition. Working
together we are able to empower students, teachers and entire communities
to go from zero to 60 every day by fueling up with nutritious foods and being
physically active for at least 60 minutes.”
This year, the National Foundation
on Fitness, Sports and Nutrition will join
the partnership and provide resources,
such as assessment software and training tools, to help schools implement the
Presidential Youth Fitness Program. The
donation is being made as part of the
foundation’s #0to60 campaign honoring
the 60th anniversary of the President’s
Council on Fitness, Sports and Nutrition.
The learn more about Fuel Up
to Play 60 and the program, visit www.fueluptoplay60.com. CMN
Marin French, Laura Chenel’s roll out spicy
additions to Petite Brie, Chevre log lines
PETALUMA, Calif. — Petite Jalapeño, a triple-cream Brie with red
and green jalapeño peppers, has been
added to Marin French Cheese’s Petite
Collection of 4-ounce wheels, while
its sister company Laura Chenel’s has
introduced a Pimento & Garlic fresh
goat cheese log following the success
of its recently-launched Spicy Cabecou
Chèvre marinated in jalapeño-infused
olive oil and crushed chilies.
Marin French Cheese’s Petite Jalapeño as well as its 8-ounce counterpart,
Jalapeño Brie, reflect consumers’ ongoing desire for piquant flavors, the company says. Made with fresh cow’s milk and
cream, the soft-ripened cheese’s smooth
texture and creamy taste counterbalance
the heat from the jalapeño peppers.
Laura Chenel’s new 8-ounce Pimento
& Garlic log blends fresh goat’s cheese
with garlic and sun-dried tomatoes, then
is coated with red and green pimento
peppers. The sweetness of the California
sun-dried tomatoes is balanced by the
subtle spicy and green pepper notes from
the pimentos.
With a different flavor profile and
usage, Laura Chenel’s Spicy Cabecou is
a dense, marinated goat cheese disk. Cut
from fresh logs, the cheese rounds are
dried on racks before being hand-packed
in jalapeño-infused olive oil with savory
chili peppers, giving a kick to the fresh
taste of the Chèvre.
“With so many choices for consumers,
it remains Laura Chenel’s mission, as
the pioneer of American goat cheese, to
offer the highest quality products, which
includes using only goat milk from farms
in western U.S.,” says Philippe Chevrollier, general manager at Marin French
Cheese and Laura Chenel’s. “We aspire
to please as many palates as possible
while remaining true to our roots and
supporting our network of independent
goat farmers.”
For more information, visit
www.marinfrenchcheese.com and
www.laurachenel.com.
CMN
ACS names Certified Cheese Professionals
DENVER — The American Cheese
Society (ACS) has announced that 155
individuals passed ACS’ sixth Certified
Cheese Professional Exam, which was
held in Des Moines, Iowa, in July.
This class of ACS Certified Cheese
Professionals (ACS CCPs) is comprised
of individuals from 51 different companies in the United States and Canada.
There are now 740 ACS CCP individuals across the United States, Canada
and Europe, the society says.
The ACS CCP Exam was launched
by ACS in 2012 to encourage high standards of comprehensive cheese knowledge and service for professionals in
all areas of the industry. The exam is
based on the knowledge and skills required to successfully perform cheeserelated tasks in various jobs within the
industry, including topics such as raw
ingredients, the cheesemaking process
and nutrition, ACS says.
“We congratulate these individuals
on this tremendous professional accomplishment,” says Nora Weiser, executive director, ACS. “The level of understanding and professionalism that
ACS CCPs bring to the industry benefits everyone, from the cheesemaker to
the consumer, and elevates an alreadythriving artisan cheese industry to an
entirely new level.”
Each ACS CCP receives an official
lapel pin, embroidered patch and a
certificate, along with the title of ACS
CCP. All recipients are required to
demonstrate continued active participation and professional development
within the cheese industry to maintain
credentials, and they must recertify every three years, ACS says.
The next exam will be held July 26,
2017, in Denver. Cheese professionals
who meet the eligibility requirements
outlined on the ACS website are encouraged to apply early, as space is
limited. Applications will be accepted
from Jan. 7 to March 31, 2017.
For
application
information,
visit
www.cheesesociety.org/eventseducation/certification-2/. To learn
more about the exam, visit www.
certifiedcheeseprofessional.org.
For more information about ACS,
visit www.cheesesociety.org. CMN
For more information please visit www.mctdairies.com
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without the express permission of Cheese Market News (For more information, contact [email protected])
September 16, 2016 — CHEESE MARKET NEWS®
9
EVENTS
Introduction to Dairy Processing and Management course will be Oct. 11-13 at Ohio State
COLUMBUS, Ohio — An Introduction to Dairy Processing and Management course will be held Oct. 11-13
on the Ohio State University campus.
In the course, participants will learn
the processing technologies and practices
of a fluid milk plant operation from the farm
all the way to the customer, organizers say.
Areas of study include fluid milk,
yogurt, cheese and frozen dairy desserts.
Other topics covered are physical and
chemical properties of fluid milk and
milk components, raw milk quality supply and good manufacturing practices.
The course is intended for plant
supervisors, operation managers, quality supervisors and anyone new to the
dairy industry.
Cost to attend is $1,100 per person until
Sept. 27. After this date, the registration cost
is $1,150. Parking passes are $7 each day
and are required if parking on the campus.
2017 Global Cheese Tech Forum is in Reno
RENO, Nev. — The 2017 Global
Cheese Technology Forum, presented
by the American Dairy Products Institute, will be Oct. 24-26, 2017, at the
Peppermill Resort in Reno, Nevada.
The forum will address concerns
and developments relevant to cheese
and whey product manufacturers.
Topics will include cheese microbiology and chemistry, cheese processing
technology and whey processing and
applications. A CEO panel discussion
on cheese and whey challenges also
will be held, according to organizers.
For more information, visit www.
globalcheesetechnologyforum.org. CMN
For more information or to register, visit http://foodindustries.
osu.edu/events/introduction-dairyprocessing-and-management. CMN
FSPCA preventive controls course is Oct. 11-13
MILWAUKEE — Accelerated Analytical Laboratories and Accelerated
University have announced that their
Food Safety Preventive Controls
Alliance (FSPCA) Preventive Controls for Human Food course will
take place Oct. 11-13 at the Hilton
Garden Inn Milwaukee Park Place.
The new FSMA Preventive Controls
for Human Food requires that every
processing facility have at least one
individual trained through the FSPCA
curriculum or equivalent, who oversees
the implementation of the facility’s food
safety plan, according to organizers.
As such, Accelerated University has
created the 2.5-day class, which will be
taught by FSPCA lead instructor Dr. Mark
A. Daeschel, PhD, M.S. Daeschel has been
a certified food scientist with the Institute
of Food Technologists, organizers say.
The course is for directors of food
safety, maintenance managers, production supervisors and leads, plant
managers and regulatory personnel,
among others.
Cost to attend is $750 per person.
If two or more people from the same
company register at the same time,
the cost is reduced to $700 per person.
To
r e g i s t e r,
visit
www.aaluniversity.org. For more information, contact David Metzger at
[email protected]. CMN
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10
CHEESE MARKET NEWS® — September 16, 2016
NEWS/BUSINESS
ANNATTO
Continued from page 1
demand,” Barnum says. “Certainly to
have a large brand like Kraft Mac &
Cheese switch has had an effect.”
The price of annatto color solutions
varies depending on the format and
concentration used in different applications. Despite rising prices, Steffensen
says he does not expect demand to
slow as consumers continue to demand
natural ingredients.
“Natural colors, while expensive,
still make up less than 1 percent of
the retail price of most food items,”
Steffensen notes. “And in this new food
world, consumers simply expect that
level of quality.”
• Supply challenges
Among the challenges in balancing annatto supply with demand are
those that come with any crop that
is subject to weather and other local
variables.
Since annatto comes from trees that
take three to four years to mature, farmers can’t plant and harvest more supply
on short notice, DDW notes. Instead,
they need to plan in medium- to longterm cycles, looking ahead at least five
or more years.
Furthermore, DDW notes, the majority of annatto comes from smaller
suppliers in regions with underdeveloped agricultural sectors. The crop
competes with others such as cashews,
coffee, bananas and cocoa. If prices of
these competing crops rise or timing of
harvest overlaps, farmers may prioritize
these other crops over annatto, reducing its supply.
Pernille Arskog, commercial technical manager, Chr. Hansen, says about
every three to four years she has seen a
wide fluctuation in annatto prices such
as the recent increase.
“It’s about how much is actually
grown and how good the yield is,” she
says. “As a company, we can work diligently with farming practices, transport
and production, but we cannot control
the weather. Natural colors are real
food.”
Weather is one uncontrollable
factor that has contributed to rising
annatto prices in addition to increased
demand. Steffensen notes that in the
last two to three months, key markets such as Brazil have experienced
drought and frost that have impacted
about 30 percent of the annatto production.
“Once and now again, there might be
an exceptionally bad harvest,” he says.
“From our perspective, there’s no doubt
we’re entering a period where prices of
annatto will go up. It’s significant, but
not more than we have handled in the
past. We’re going to work through it
with the farmers and our customers.”
Both Chr. Hansen and DDW spread
their sourcing out among various
regions in an effort to mitigate raw
material fluctuations.
In addition to working with its
suppliers to achieve a sustainable,
high-quality annatto yield, Steffensen
says, Chr. Hansen diversifies its supply
market to include multiple continents
in both hemispheres.
“We have a very established footprint
in key markets with over 100 years of
creating relationships with farmers and
sourcing only high-quality annatto,”
he says. “If a harvest is poor in Brazil,
our global sourcing setup allows us to
source raw material from other markets
like Kenya. We have offered annatto for
a long time and have always managed
these fluctuations.”
Prices, however, are expected to
remain high in the near future. DDW
says based on supply and demand fundamentals, annatto prices will remain
high in the short term, at least through
the next six months. Chr. Hansen
estimates a better harvest next year
with better annatto yields.
CMN
More News, More Solutions,
More Choices!
CANADA
Continued from page 1
to initiate a WTO dispute settlement
proceeding against Canada once the
agreement details are announced.
“For years U.S. exporters have borne
the brunt of a continuing procession of
new Canadian policy tools intended to
curtail dairy imports,” says Tom Suber,
president, USDEC. “TPP has included
new features to move toward more open
trade by expanding market access compared to the status quo, but Canada’s
been doing its best to erode longstanding
existing access as much as possible before this agreement is even put in place.”
In addition to USDEC, IDFA and
NMPF, the other dairy groups who signed
the letter include: the Australian Dairy
Industry Council, the European Dairy Association, the European Whey Products
Association, the European Association of
Dairy Trade, Mexico National Chamber
of Industrial Milk and the Dairy Companies Association of New Zealand.
This letter follows another recently
WASDE
Continued from page 1
Meanwhile, NDM is forecast to
average $0.810-$0.830 in 2016, up from
$0.795-$0.815 in the August forecast. In
2017, the average NDM price is forecast
to rise to fall in the $0.890-$0.960 range.
Dry whey now is forecast to average
$0.260-$0.280 in 2016, up from $0.255$0.275 in last month’s report, and then
climb to $0.295-$0.325 in 2017.
USDA lowered its Class III price
forecast for both 2016 and 2017 as the
reduction in the cheese price more than
offsets the whey price increase. Class III
milk in 2016 now is expected to average
in the $14.75-$14.95 per hundredweight
range, down from $14.80-$15.00 in the
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sent to U.S. trade and agriculture leaders by Sens. Chuck Schumer, D-N.Y., and
Tammy Baldwin, D-Wis., urging an investigation into Canadian dairy policies
that they said could raise compliance
issues with NAFTA and WTO obligations.
(See “Senators urge investigation into
Canada diary pricing policies that
impact U.S. exports” in the Sept. 2,
2016, issue of Cheese Market News.)
“The dairy trade situation with
Canada has gone from bad to worse this
year, and now Canada is contemplating
doubling down on that terrible track
record,” says Jim Mulhern, president
and CEO, NMPF. “Enough is enough;
Canada needs to stop shirking its dairy
commitments and hold up its end of
already negotiated agreements.”
Connie Tipton, president and CEO,
IDFA, says Canada’s continued disregard for the provisions in its pacts with
trade partners is unacceptable.
“These protectionist policies
are in direct conflict with principles of free markets and trade,
which trade agreements like TPP
aim to promote,” Tipton says. CMN
August report. In 2017, USDA forecasts
Class III milk will average in the $14.95$15.95 range, down from its forecast of
$15.00-$16.00 last month.
The 2016 Class IV price forecast is
lowered to $13.65-$13.95, down from
$13.75-$14.05 in last month’s report,
as the lower butter price more than
offsets the higher NDM price. In 2017,
though, higher NDM prices more than
offset the lower butter price forecast,
leading USDA to increase the Class IV
price forecast to $13.80-$14.90, up 20
cents from last month’s report.
The all-milk price forecast is lower
at $16.10-$16.30 in 2016 but unchanged
at $16.15-$17.15 for 2017.
In this month’s report USDA forecasts 2016 milk production to total 212.2
billion pounds, up 100 million pounds
from its August forecast. In 2017, milk
production is projected to climb to 216.1
billion pounds, up 300 million pounds
from the previous month’s report. CMN
EXPANSION
Continued from page 1
Milk Producers, a group of family-owned
dairy farmers.
F $145 (2nd Class) F $200 (1st Class/Canada) F $205 (2nd Class) F $325 (1st Class/Canada) F $145 (Email Only; Without Mail Service)
“We have experienced astonishing
F $330 (International)
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success at Continental Dairy over the
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past four years, and it only makes sense
F Please contact me for complete advertising details
METHOD OF PAYMENT (U.S. Funds Only):
that we are adding butter to our list
FBill Me FPAYMENT Enclosed
NAME: ____________________________________________________
of ingredients that we manufacture,”
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FVISA FMasterCard FAmerican Express
says Steve Cooper, president, Select
COMPANY: ________________________________________________
Milk Producers, and general manager
ADDRESS: ________________________________________________
CARD NUMBER: ___________________________________________
of dairy manufacturing operations. “We
CITY: _________________________ STATE: ____ ZIP: ___________
EXPIRATION DATE: ________________________________________
PHONE: (______) _____________________ DATE: _______________
are extremely pleased to also be adding
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to our workforce and investing in our
For immediate service, call (608) 831-6002, email [email protected] or fax your subscription to (608) 288-9093.
local community with this expansion.”
SUBSCRIBER SERVICES • P.O. Box 628254 • Middleton, Wisconsin 53562
Continental Dairy currently manuE-mail: [email protected] • Website: www.cheesemarketnews.com
factures nonfat dry milk, condensed milk
and cream, and the company exports
For more information please visit www.cheesemarketnews.com
products to 15 different countries. CMN
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11
NEWS/BUSINESS
Process Expo sells more than 75 percent
of exhibit space a year ahead of event
McLEAN, Va. — Process Expo, a trade
show for the food processing industry
produced by The Food Processing Suppliers Association (FPSA), has sold
more than 165,000 square feet of exhibit
space to 264 companies to date. The
2017 show will take place Sept. 19-22,
2017, in the North Hall of McCormick
Place in Chicago.
The 2017 show also will feature many
international exhibitors as a result
of its partnership with three German
Messes who organize three of the most
influential food-focused trade fairs in
the world, FPSA notes.
“We are thrilled with the response
from the industry for Process Expo 2017.
We opened exhibit sales six weeks ago
and have already sold more than 75
percent of our show floor with so many
leading companies in the industry already committing their support for the
event,” says Tom Kittle, FPSA Chairman
and President of Handtmann Inc. and
Handtmann Canada Ltd. “The 2017
event is going to be a must-attend event
for all segments of the food processing
industry.”
The Process Expo show floor will
offer equipment, machinery and demos
for buyers in all of the vertical industry
“We are thrilled with
the response from the
industry for Process
Expo 2017. The 2017
event is going to be a
must-attend event for
all segments of the food
processing industry.”
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Tom Kittle
FOOD PROCESSING
SUPPLIERS ASSOCIATION
sectors, including dairy, bakery/snacks,
beverage, meat/poultry/seafood, prepared foods, fruits/vegetables, confectionery/candy, co-packers and pet foods.
General sales of exhibit space are
available on the website at www.myprocessexpo.com/exhibitors/reserve-yourbooth. For more information, contact
Grace A. Cular Yee, vice president, sales,
at 703-663-1220 or Alaina Herrera, exhibit sales associate, at 703-663-1212. CMN
Land O’Lakes reports increased net earnings
to ensure sustainable crop production
by delivering insights, products and services, enhancing sustainability within
the Dairy Foods and Feed businesses
and partnering with other entities,
including government, to improve efficiency and collaboration on conservation and sustainability programs. CMN
ARDEN HILLS, Minn. — Land O’Lakes
Inc. recently announced second quarter
financial results, reporting quarterly
net earnings of $134 million on sales of
$3.5 billion for the period ending June
30, 2016. Second quarter results were
up 67 percent compared to the same
period in 2015.
Year-to-date net sales totaled $7.1
billion with net earnings of $238 million. These results were significantly
higher over the same period in 2015,
with year-to-date earnings up 33 percent
year-over-year, the co-op says.
“Despite sustained market volatility
and headwinds across the segments
where we operate, Land O’Lakes Inc.
is reporting significantly higher results
year-over-year with strong performance
across all of our business units,” says
Chris Policinski, Land O’Lakes Inc.
president and CEO. “We will continue
to invest in growth, innovation and our
core businesses, and with the addition of
our new business unit Sustain continue
to collaborate on and improve environmental sustainability for the benefit of
our members, customers and partners.”
Land O’Lakes says its Dairy Foods
segment, including the Land O’Lakes
brand, saw higher results over the
same period in 2015, due in part to less
volatile markets and strong volumes and
overall performance in the Foodservice
division.
Land O’Lakes Inc. recently announced the formation of a new business
unit Sustain, which will focus on helping
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© 2016 CHEESE MARKET NEWS — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber
without the express permission of Cheese Market News (For more information, contact [email protected])
12
CHEESE MARKET NEWS® — September 16, 2016
NEWS/BUSINESS
House ag committee holds hearing on expanding trade with Cuba
WASHINGTON — The House Agriculture Committee this week held a
hearing to examine the potential for
expanded agricultural trade between
the United States and Cuba. Much
of the hearing focused on the Cuba
Agricultural Exports Act (HR 3687),
which would lift financing restrictions that have limited agricultural
exports to Cuba.
Agricultural Committee Chairman K. Michael Conaway, R-Texas,
says that despite the complicated
relationship with Cuba, many believe
lifting the financing restrictions on
agricultural trade could improve the
daily lives of Cubans while also helping American agricultural producers
who are experiencing a downturn in
the agricultural economy.
“If we are to be successful in
lifting these restrictions, we must
find common ground,” Conaway said
Wednesday following the hearing. “Today’s hearing was a good step in that
direction. It was also a reminder that,
in my view, repeated efforts to lift both
the embargo and restrictions on travel
are a distraction that is preventing us
from making meaningful changes.”
The U.S. Agricultural Coalition for
Cuba, whose members include the
International Dairy Foods Association (IDFA), National Milk Producers
Federation, U.S. Dairy Export Council
and other dairy and ag organizations,
submitted comments for the hearing explaining how easing sanctions
could bring economic value to U.S.
agriculture.
The letter notes that U.S. agricultural and food products can be
exported to Cuba for humanitarian
reasons under the Trade Sanctions
Reform Act of 2000, but remaining
U.S. restrictions on financing those
sales have made it difficult to compete
with other countries in the Cuban
market. U.S. restrictions require
Cuban buyers of U.S. agricultural
products to pay cash in advance or
finance the transaction through third-
country banking institutions.
“U.S. agriculture is at a global
disadvantage as we watch foreign
competitors continue to take away our
market share because of their ability
to offer more favorable credit terms,”
the coalition says. “As recently as
2008, our industry was selling nearly
$700 million in agriculture products
to Cuba annually. In 2015, our sales
were under $200 million in what is
nearly a $2 billion market. U.S. market
share is now less than 10 percent of
Cuba’s agricultural imports, despite
superior quality, competitive prices
of our products and logistical advantages.”
The coalition urged leaders of the
committee to move the HR 3687 bill
forward and reject any language that
would reverse or hinder U.S. agricultural trade with Cuba. In addition to
lifting financial restrictions, IDFA
notes that HR 3687 also would provide
for market promotion and U.S. agribusiness investment in Cuba. CMN
USDA revises appendices for 2016 tariff-rate import quota licensing
WASHINGTON — USDA’s Foreign
Agricultural Service (FAS) in the Aug.
26 Federal Register announced the revised appendices for Dairy Tariff-Rate
Import Quota Licensing for the 2016
quota year. The revisions reflect the
cumulative annual transfers from Appendix 1 to Appendix 2 for certain dairy
product import licenses permanently
surrendered by licensees or revoked
by the licensing authority, FAS says.
FAS administers the Dairy TariffRate Import Quota Licensing Regulation that provides for the issuance of
licenses to import certain dairy articles
under tariff-rate quotas (TRQs) as set
forth in the Harmonized Tariff Schedule (HTS) of the United States.
These dairy articles may only be
entered into the United States at the
low-tier tariff 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.
The regulation states that whenever a historical license (Appendix
1) is not issued to an applicant,
is permanently surrendered or is
revoked by the licensing authority,
the amount of such license will be
transferred to Appendix 2. (For more
information on the annual transfers, see the Aug. 29 Federal Register notice at www.federalregister.
gov/articles/2016/08/26/2016-20248/
adjustment-of-appendices-for-dairytariff-rate-import-quota-licensingfor-the-2016-tariff-rate-quota.)
For more information, contact
Abdelsalam El-Farra, Dairy Import
Licensing Program, Import Policies and Export Reporting Division,
USDA, at 202-720-9439; email abdel
[email protected]. CMN
Total conventional
dairy ads decrease
6 percent, AMS says
WASHINGTON — Total conventional
dairy advertisements decreased 6 percent
last week from the prior week, while conventional cheese ads increased 2 percent,
says USDA’s Agricultural Marketing Service (AMS) in its latest weekly National
Dairy Retail Report released Sept. 9.
AMS says national conventional varieties of 8-ounce natural cheese blocks last
week had a weighted average advertised
price of $2.10, down from $2.17 one week
earlier and $2.21 one year earlier.
Natural varieties of 1-pound cheese
blocks last week had a weighted average
advertised price of $3.53, up from $3.37
one week earlier but down from $4.33
one year earlier, AMS says, while 2-pound
cheese blocks had a weighted average
advertised price of $6.01, down from $6.22
one week earlier and $6.67 one year ago.
AMS says natural varieties of 8-ounce
cheese shreds last week had a weighted
average advertised price of $2.18, down
from $2.19 one week earlier and $2.27 one
year earlier, while 1-pound cheese shreds
had a weighted average advertised price of
$3.51, up from $3.09 one week earlier but
down from $3.64 one year earlier.
Meanwhile, national conventional
butter in 1-pound packs last week had
a weighted average advertised price of
$3.29, down from $3.84 one week earlier
but up from $2.97 one year ago. CMN
USDA seeks dairy
board nominees
WASHINGTON — USDA is asking dairy
producer organizations and other interested parties to nominate candidates to
serve on the National Dairy Promotion
and Research Board. Nominations must
be submitted by Sept. 28.
The Secretary of Agriculture will appoint 12 dairy producers to serve threeyear terms beginning Nov. 1, 2016, and
ending Oct. 31, 2019. The appointees
High-Performance, High-Quality
will replace producer board members
Curd Draining, Cheddaring, Milling,
whose terms expire Oct. 31, 2016.
Salting and Mellowing:
USDA will accept dairy producer
Featuring…
nominations for the following regions:
„
Individual Control of Each Belt
Region 2 (California and Hawaii); Re„
Milled or Stirred Curd Capabilities on
gion 3 (Arizona, Colorado, Montana,
Same Machine
Nevada, Utah and Wyoming); Region 4
„
Complete Whey Separation from
Each Belt – “No Sump”
(Arkansas, Kansas, New Mexico, Okla„
Modular Design
homa and Texas); Region 6 (Wisconsin);
„
Highly Accurate Salt Application
Region 9 (Indiana, Michigan, Ohio and
West Virginia); Region 10 (Alabama,
Providing…
District of Columbia, Florida, Georgia,
„
Easily Adjusts Curd Depth/Retention Time
„
More Efficient Curd and Whey Separation
Kentucky, Louisiana, Mississippi, North
„
Offers Complete Flexibility to Further Process
Carolina, Puerto Rico, South Carolina,
Different Cheese Types
Tennessee and Virginia); Region 11
„
Provides Fresher Whey for Further Processing
(Delaware, Maryland, New Jersey and
„
Maximum Salt Uptake
Pennsylvania); and Region 12 (ConCustom is our first name.
necticut, Maine, Massachusetts, New
Hampshire, New York, Rhode Island and
CUSTOM FABRICATING & REPAIR
Vermont). The secretary will appoint five
Custom, Creative Solutions
members for Region 2, and one member
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for each of the remaining regions.
For nominating forms and informaFor more information please visit www.gotocfr.com
tion, visit www.ams.usda.gov/dairy. CMN
© 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber
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