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36
U.S. milk production down in September vs. year ago WASHINGTON — Milk production in the 23 major milk-producing states during September totaled 14.67 billion pounds, down 0.5 percent from September 2011, according to recent preliminary data from USDA’s National Agricultural Statistics Service (NASS). (All figures are rounded. Please see CMN’s Milk Production chart on page 6.) August revised production in the 23 major states, at 15.34 billion pounds, was down slightly from August 2011. The August revision represents an increase of 26 million pounds or 0.2 percent from last month’s preliminary production estimate. NASS estimates total U.S. milk production in September 2012 was 15.71 billion pounds, down 0.5 percent from a year earlier. There were an estimated 9.195 million cows on U.S. farms in September, down 27,000 head from August 2012 and 6,000 head Dairy, food manufacturers await finalization of FSMA By Aaron Martin MADISON, Wis. — The 2011 Food Safety Modernization Act (FSMA) has been dubbed the most sweeping reform of the processed food industry since the Federal Food, Drug and Cosmetic Act was signed into law more than 70 years ago. The impact FSMA will have on dairy processing facilities and food technology manufacturers, however, still isn’t exactly clear. Marianne Smukowski, dairy safety and quality coordinator, Uni- versity of Wisconsin-Madison Center for Dairy Research (CDR), says many in the dairy industry await finalized FSMA regulations before taking action. “We’re all waiting very patiently for information to be released because it was supposed to come out in July,” she says. “It’s good that things are changing because it hasn’t changed in some time, but it would help if we knew what (was changing).” FDA may finalize and implement portions of FSMA early next year, after the Nov. 6 presidential election. In the meantime, provisional versions of the law will serve as a loose framework for new industry standards, adds Smukowski. According to FDA, FSMA will shift the focus of food safety from responding to foodborne illnesses when they occur to preventing occurrences altogether. Food processing facilities must register with the FDA’s updated food safety facility registration system, which became available Oct. 22. The updated registration form includes new food classification categories, including: soft ripened cheese, semi-soft cheese, hard cheese and a category for other cheeses or cheese products. Facilities also must establish a product tracing system to improve FDA’s ability to track contaminated food in the event of a recall. Volume 32 October 26, 2012 Number 40 By Alyssa Sowerwine WASHINGTON — The dairy in- dustry is watching with interest to see how the upcoming elec- tion will play out in key dairy states and what the outcome could mean for the fate of the 2012 Farm Bill. While some stakeholders don’t foresee the election out- come dramatically changing prospects for dairy policy, they do agree that it is imperative a farm bill is passed in the lame duck session of Congress fol- lowing the election. Jerry Slominski, senior vice president for legislative affairs and economic policy for the International Dairy Foods Association, says the group is Industry discusses key dairy state election races, farm bill very focused on the farm bill, but “I don’t know that it’s an issue that will really play out in the election.” “It doesn’t appear that the bill is swinging votes one way or the other,” he says. However, Chandler Goule, director of government rela- tions for the National Farmers Union, sees it differently. “There is some overlap when you look at the top swing states and the top dairy states, particularly Wisconsin and Pennsylvania,” he says. “So with that in mind, I really do think the farm bill and dairy policy are going to play a key role in the election outcome in those areas.” He adds that, in his opinion, House members’ refusal to pass a farm bill thus far “could cost them seats.” Dana Brooks, senior vice president of government rela- tions for the National Milk Pro- ducers Federation, notes the eagerness in the dairy industry for the election to conclude so Congress can return to work. “The most important thing for us is to get the farm bill done this year,” she says. • Races to watch Brooks says that she does not foresee a major change in congressional leadership fol- lowing the election. Still, there are a few inter- esting races she is watching. Sen. Robert Casey, D-Pa., is facing a close race against Re- publican challenger Tom Smith for his Senate seat, Brooks says. “Casey has been great to work with, and it looks like this will be a tough race,” she says. “It’s always hard to face losing incumbents that you’ve spent so many years working with and that have the work- ing knowledge of the dairy industry.” Brooks adds that she feels certain “freshman” House members — including Kristi Noem, R-S.D., and Chris Gibson, R-N.Y. — “stepped up to the plate” during their first terms and now are facing challenging races to keep their seats. In addition, some states, including Iowa, California and New York, are facing redistrict- ing or a reduction in seats, which has created a situation where some existing lawmakers now have to run against each other. One example is with Re- publicans Tom Latham and Leonard Boswell in Iowa. “It’s a shame when you have to see two strong agriculture leaders run against each other,” Brooks says. “One of them will inevitably be losing their spot.” Goule, again noting the impact the swing/dairy states could have on the election, says he also is watching Casey’s race in Pennsylvania as well as Rep. Tammy Baldwin, D-Wis., vs. Republican Tommy Thompson in the race for the Senate seat currently held by Herb Kohl, who is retiring. He notes that NFU does not endorse candidates, but the group’s political action com- mittee has endorsed Baldwin in Wisconsin. • Lame duck session The election outcome could affect Congress’ ability to make progress in the lame duck ses- sion, Slominski notes. “Any major change in con- trol of the White House or Congress I think lessens the chance you’ll see a completed farm bill in the November/De- cember time frame,” he says. “It’s looking like the House and Senate majorities will stay the same, but the presidential race is close.” Brooks notes that not pass- ing a farm bill in the lame duck session is the “worst thing that Congress can do.” NMPF begins to revamp Real Seal, launches website Turn to ELECTION, page 6 D Turn to NASS, page 6 D ARLINGTON, Va. — The National Milk Producers Federation (NMPF) this week announced the first step in revitalizing the Real Seal with the launch of its revamped website, www. RealSeal.com. In March, management of the Real Seal program was transferred from the United Dairy Industry As- sociation to NMPF. The two Turn to REAL SEAL, page 9 D Turn to FSMA, page 10 D Scan this code for breaking news and the latest markets! A INSIDE ) Guest column: ‘My 2 cents’ worth on what’s at stake Election Day.’ For details, see page 4. ) CDR nears fundraising goal for new facility, will seek input on facility design. For details, see page 15. ) Cheese stocks drop below 1 billion pounds in Sept. For details, see page 23. ) 50 Years Strong: Ivarson Inc. celebrates milestone. For details, see page 26. Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS ® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

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U.S. milk production down in September vs. year agoWASHINGTON — Milk production in the 23 major milk-producing states during September totaled 14.67 billion pounds, down 0.5 percent from September 2011, according to recent preliminary data from USDA’s National Agricultural Statistics Service (NASS). (All fi gures are rounded. Please see CMN’s Milk Production chart on page 6.)

August revised production in the 23 major states, at 15.34 billion pounds, was down slightly from August 2011. The August revision represents an increase of 26 million pounds or 0.2 percent from last month’s preliminary production estimate.

NASS estimates total U.S. milk production in September 2012 was 15.71 billion pounds, down 0.5 percent from a year earlier. There were an estimated 9.195 million cows on U.S. farms in September, down 27,000 head from August 2012 and 6,000 head

Dairy, food manufacturers await fi nalization of FSMA By Aaron Martin

MADISON, Wis. — The 2011 Food Safety Modernization Act (FSMA) has been dubbed the most sweeping reform of the processed food industry since the Federal Food, Drug and Cosmetic Act was signed into law more than 70 years ago. The impact FSMA will have on dairy processing facilities and food technology manufacturers, however, still isn’t exactly clear.

Marianne Smukowski, dairy safety and quality coordinator, Uni-versity of Wisconsin-Madison Center for Dairy Research (CDR), says many in the dairy industry await fi nalized FSMA regulations before taking action.

“We’re all waiting very patiently for information to be released because it was supposed to come out in July,” she says. “It’s good that things are changing because it hasn’t changed in some time, but it would help if we knew what (was changing).”

FDA may fi nalize and implement portions of FSMA early next year, after the Nov. 6 presidential election. In the meantime, provisional versions of the law will serve as a loose framework for new industry standards, adds Smukowski.

According to FDA, FSMA will shift the focus of food safety from responding to foodborne illnesses when they occur to preventing occurrences altogether. Food processing facilities must register with the FDA’s updated food safety facility registration system, which became available Oct. 22. The updated registration form includes new food classifi cation categories, including: soft ripened cheese, semi-soft cheese, hard cheese and a category for other cheeses or cheese products. Facilities also must establish a product tracing system to improve FDA’s ability to track contaminated food in the event of a recall.

Volume 32 October 26, 2012 Number 40

By Alyssa Sowerwine

WASHINGTON — The dairy in-dustry is watching with interest to see how the upcoming elec-tion will play out in key dairy states and what the outcome could mean for the fate of the 2012 Farm Bill.

While some stakeholders don’t foresee the election out-come dramatically changing prospects for dairy policy, they do agree that it is imperative a farm bill is passed in the lame duck session of Congress fol-lowing the election.

Jerry Slominski, senior vice president for legislative affairs and economic policy for the International Dairy Foods Association, says the group is

Industry discusses key dairy state election races, farm bill

very focused on the farm bill, but “I don’t know that it’s an issue that will really play out in the election.”

“It doesn’t appear that the bill is swinging votes one way or the other,” he says.

However, Chandler Goule, director of government rela-tions for the National Farmers Union, sees it differently.

“There is some overlap when you look at the top swing states and the top dairy states, particularly Wisconsin and Pennsylvania,” he says. “So with that in mind, I really do think the farm bill and dairy policy are going to play a key role in the election outcome in those areas.”

He adds that, in his opinion, House members’ refusal to pass a farm bill thus far “could cost them seats.”

Dana Brooks, senior vice president of government rela-tions for the National Milk Pro-ducers Federation, notes the eagerness in the dairy industry for the election to conclude so Congress can return to work.

“The most important thing for us is to get the farm bill done this year,” she says.• Races to watch

Brooks says that she does not foresee a major change in

congressional leadership fol-lowing the election.

Still, there are a few inter-esting races she is watching.

Sen. Robert Casey, D-Pa., is facing a close race against Re-publican challenger Tom Smith for his Senate seat, Brooks says.

“Casey has been great to work with, and it looks like this will be a tough race,” she says. “It’s always hard to face losing incumbents that you’ve spent so many years working with and that have the work-ing knowledge of the dairy industry.”

Brooks adds that she feels certain “freshman” House members — including Kristi Noem, R-S.D., and Chris Gibson, R-N.Y. — “stepped up to the plate” during their fi rst terms and now are facing challenging races to keep their seats.

In addition, some states, including Iowa, California and New York, are facing redistrict-ing or a reduction in seats, which has created a situation where some existing lawmakers now have to run against each other.

One example is with Re-publicans Tom Latham and Leonard Boswell in Iowa.

“It’s a shame when you have to see two strong agriculture

leaders run against each other,” Brooks says. “One of them will inevitably be losing their spot.”

Goule, again noting the impact the swing/dairy states could have on the election, says he also is watching Casey’s race in Pennsylvania as well as Rep. Tammy Baldwin, D-Wis., vs. Republican Tommy Thompson in the race for the Senate seat currently held by Herb Kohl, who is retiring.

He notes that NFU does not endorse candidates, but the group’s political action com-mittee has endorsed Baldwin in Wisconsin.• Lame duck session

The election outcome could affect Congress’ ability to make progress in the lame duck ses-sion, Slominski notes.

“Any major change in con-trol of the White House or Congress I think lessens the chance you’ll see a completed farm bill in the November/De-cember time frame,” he says. “It’s looking like the House and Senate majorities will stay the same, but the presidential race is close.”

Brooks notes that not pass-ing a farm bill in the lame duck session is the “worst thing that Congress can do.”

NMPF begins to revamp Real Seal, launches website

Turn to ELECTION, page 6 D

Turn to NASS, page 6 D

ARLINGTON, Va. — The National Milk Producers Federation (NMPF) this week announced the fi rst step in revitalizing the Real Seal with the launch of its revamped website, www.RealSeal.com.

In March, management of the Real Seal program was transferred from the United Dairy Industry As-sociation to NMPF. The two Turn to REAL SEAL, page 9 DTurn to FSMA, page 10 D

Scan this code for breaking news and the latest markets!

A

INSIDE) Guest column: ‘My 2 cents’ worth on what’s at stake Election Day.’ For details, see page 4.

) CDR nears fundraising goal for new facility, will seek input on facility design. For details, see page 15.

) Cheese stocks drop below 1 billion pounds in Sept. For details, see page 23.

) 50 Years Strong: Ivarson Inc. celebrates milestone. For details, see page 26.

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

http://www.facebook.com/cheesemarketnews
Page 2: Industry discusses key dairy state election races, farm bill

MARKET INDICATORS

2 CHEESE MARKET NEWS® — October 26, 2012

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 INFORMATION&KHHVH�0DUNHW�1HZV���3XEOLFDWLRQ�����������������������������������,661�������������LV�SXEOLVKHG�ZHHNO\�E\�4XDUQH�3XEOLVKLQJ�//&�������6LJQDWXUH�'ULYH��0LGGOHWRQ��:,���������3KRQH����������������)$;���������������3HULRGLFDOV�SRVWDJH�SDLG�DW�0DGLVRQ��:,��&LUFXODWLRQ�UHFRUGV�DUH�PDLQWDLQHG�E\�4XDUQH�3XEOLVKLQJ�//&�������6LJQDWXUH�'ULYH��0LGGOHWRQ��:,� ��������POSTMASTER: Send address changes to Cheese Market News®, Subscriber Services, P. O. Box 628254, Middleton, WI 53562; Form 3579 requested; or call direct at 608/831-6002.� �$OO� ULJKWV�UHVHUYHG�XQGHU�WKH�8QLWHG�6WDWHV�,QWHUQDWLRQDO�DQG�3DQ�$PHULFDQ�&RS\ULJKW� &RQYHQWLRQV�� 1R� SDUW� RI� WKLV� SXEOLFDWLRQ� PD\� EH�UHSURGXFHG��VWRUHG�LQ�D�UHWULHYDO�V\VWHP�RU�WUDQVPLWWHG�LQ�DQ\�IRUP�RU�E\�DQ\�PHDQV��PHFKDQLFDO�� SKRWRFRS\LQJ��HOHFWURQLF�UHFRUGLQJ�RU�RWKHUZLVH��ZLWKRXW�WKH�SULRU�ZULWWHQ�SHUPLVVLRQ�RI�4XDUQH� 3XEOLVKLQJ� //&�� �2SLQLRQV� H[SUHVVHG� LQ� DUWLFOHV� DUH�WKRVH� RI� WKH� DXWKRUV� DQG� GR� QRW� QHFHVVDULO\� UHÁHFW� WKRVH� RI�4XDUQH�3XEOLVKLQJ�//&�GED�&KHHVH�0DUNHW�1HZV���&KHHVH�0DUNHW�1HZV��GRHV�QRW�HQGRUVH�WKH�SURGXFWV�RI�DQ\�DGYHUWLVHU�DQG�GRHV�QRW�DVVXPH�DQG�KHUHE\�GLVFODLPV�DQ\�OLDELOLW\�WR�DQ\�SHUVRQ�IRU�DQ\�ORVV�RU�GDPDJH�FDXVHG�E\�HUURUV�RU�RPLVVLRQV�LQ�WKH�PDWHULDO�FRQWDLQHG�KHUHLQ��UHJDUGOHVV�RI�ZKHWKHU�VXFK�HUURUV�UHVXOW�IURP�QHJOLJHQFH��DFFLGHQW�RU�DQ\�RWKHU�FDXVH�ZKDWVRHYHU��&RS\ULJKW������E\�4XDUQH�3XEOLVKLQJ�//&�Subscriptions:������IRU�8�6���VHFRQG�FODVV�GHOLYHU\���������IRU�8�6��ÀUVW�FODVV�GHOLYHU\�LQFOXGLQJ�&DQDGD�DQG������,QWHU�QDWLRQDO�UDWH�WR�DOO�RWKHUV���3ULQWHG�LQ�8�6�$�

Susan Quarne, 3XEOLVKHU (PH 608/831-6002; FAX 608/831-1004)���e-mail: [email protected] Kate Sander, (GLWRULDO�'LUHFWRU (PH 509/962-4026; FAX 509/962-4027)���e-mail: [email protected] Sowerwine, 6HQLRU�(GLWRU (PH 608/288-9090; FAX 608/288-9093)�� e-mail: [email protected] Archwamety, 1HZV�:HE�(GLWRU (PH 608/288-9090; FAX 608/288-9093)�� e-mail: [email protected] Aaron Martin, 1HZV�(GLWRU (PH 608/288-9090; FAX 608/288-9093)�� e-mail: [email protected]

REGULAR CONTRIBUTORSJohn Umhoefer, Downes-O'Neill LLC, International Dairy Foods Association, National Milk Producers Federation

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)

YEAR2006200720082009201020112012

JAN13.3913.5619.3210.7814.5013.4817.05

FEB12.2014.18 17.03 9.31 14.2817.0016.06

MAR11.1115.0918.0010.4412.7819.4015.72

APR10.9316.0916.7610.7812.9216.8715.72

MAY10.8317.6018.18 9.8413.3816.5215.23

JUN11.2920.1720.25 9.9713.6219.1115.63

JUL10.9221.3818.24 9.9713.7421.3916.68

AUG11.0619.8317.3211.2015.1821.6717.73

SEP12.2920.0716.2812.1116.2619.0719.00

OCT12.3218.7017.0612.8216.9418.03

NOV12.8419.2215.5114.0815.4419.07

DEC13.4720.6015.2814.9813.8318.77

(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

10,973117,523

+148-542

7,008129,396

+5-2,371

+3,965-11,873

NC -2

Weekly Cold Storage Holdings October 22, 2012 On hand Week Change since Oct. 1 Last Year Monday Change Pounds Percent Pounds Change

Dry Products* October 26, 2012

DRY BUTTERMILK(FOB)Central & East: $1.5000(+5)-$1.6300.(FOB) West: $1.4400(+1)-$1.5100; mostly $1.4400(+1)-$1.4700.

EDIBLE LACTOSE(FOB)Central and West: $.5900(-2)-$.9300(+3); mostly $.7500-$.8200.

NONFAT DRY MILKCentral & East: low/medium heat $1.4900(-3/4)-$1.6000(-3); mostly $1.5100-$1.5600(-3). high heat $1.5775(+1 3/4)-$1.6600(-2).West: low/medium heat $1.4300(+2)-$1.5500; mostly $1.4600(+1)-$1.5200. high heat $1.4900(+1)-$1.6100.Calif. manufacturing plants: extra grade/grade A weighted ave. $1.4397(+.0270) based on 6,288,447 lbs. Sales to CCC: 0 lbs.

WHOLE MILK POWDER (National): $1.6000-$1.9500.

DRY WHEYCentral: nonhygroscopic $.5750(+3/4)-$.6325; mostly $.5800-$.6200(+1/2).West: nonhygroscopic $.5900-$.6425; mostly $.6000-$.6350(+1/4).(FOB) Northeast: extra grade/grade A $.6375-$.6625(+1/2).

ANIMAL FEED (Central): Whey spray milk replacer $.4350-$.5850.

WHEY PROTEIN CONCENTRATE (34 percent): $1.1600(+1)-$1.3425; mostly $1.2000-$1.2525.

CASEIN: Rennet $3.7000-$4.4000; Acid $4.4500-$4.7500.

*Source: USDA’s Dairy Market News

Total Contracts Traded/Open Interest

Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.

OCT12NOV12DEC12JAN13FEB13MAR13APR13MAY13JUN 13JUL 13AUG 13SEP 13OCT 13NOV 13DEC 13

152/4,865

2.0592.0131.9841.9111.8801.8551.8551.8301.8401.8301.8311.8251.8051.8051.820

1,2531,1921,240

304189161121120141

3811323225

6

CHEESE FUTURES for the week ended October 25, 2012 (Listings for each day by month, settling price and open interest)

2.0562.0291.9901.9131.8851.8611.8551.8301.8401.8301.8311.8251.8051.8051.820

1,2521,1921,248

315193164123128153

502345443718

200/4,985

2.0542.0541.9991.9121.8801.8601.8551.8301.8401.8301.8311.8251.8051.8051.820

1,2521,1921,244

310188159123129153

502345443718

Fri., Oct. 19 Mon., Oct. 22 Tues., Oct. 23 Wed., Oct. 24 Thurs., Oct. 25

2.0602.0132.0051.9461.9231.8851.8551.8301.8401.8301.8311.8251.8051.8051.820

1,2531,1921,240

282166150120120141

3811123213

6

191/4,776

2.0552.0132.0141.9621.9301.8901.8501.8251.8311.8291.831

---------------

1.820

1,2521,1921,240

279163144120119110

83

---------------

2

37/4,632 52/4,967

Total Contracts Traded/Open Interest

OCT12NOV12DEC12JAN13FEB13MAR13APR13MAY13JUN 13JUL 13AUG 13SEP 13OCT 13NOV 13DEC 13

9/1,484

61.9861.5063.4060.3560.0060.0060.0059.9559.4858.5057.0054.5053.0052.7552.50

286223299

927277525146474751484845

DRY WHEY FUTURES for the week ended October 25, 2012 (Listings for each day by month, settling price and open interest)

61.9861.5062.7559.5060.0060.0060.0059.9559.4858.5057.0054.5053.0052.7552.50

286221295

927277525146525351484845

46/1,489 6/1,495

Fri., Oct. 19 Mon., Oct. 22 Tues., Oct. 23 Wed., Oct. 24 Thurs., Oct. 25

61.9861.5063.4060.3560.0060.0060.0059.9559.4858.5057.0054.5053.0052.7552.50

25/1,477

62.0061.5062.5059.0358.0358.5059.5059.9559.4858.5057.0054.5053.0052.7552.50

286222300

917176545146474745444343

6/1,466

286224299

927277525146474747474545

Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com.

61.9862.0362.7360.0059.0060.0060.0059.7559.2558.0057.0054.5053.0052.7552.25

286225295

937377525146525351484845

Monday Tuesday Wednesday Thursday Friday

Chicago Mercantile Exchange

Oct. 22 Oct. 23 Oct. 24 Oct. 25 Oct. 26

Weekly average (Oct. 22-26): Barrels: $2.0290(+.0705); 40-lb. Blocks: $2.0640(+.0400).Weekly ave. one year ago (Oct. 24-28, 2011): Barrels: $1.7400; 40-lb. Blocks: $1.7270.

Cheese BarrelsPriceChange

Cheese 40-lb. blockPriceChange

Extra Grade NDMPriceChange

Grade A NDMPriceChange

Weekly average (Oct. 22-26): Extra Grade: $1.5600(-.0450); Grade A: $1.5600(-.0160).

Grade AA ButterPriceChange

Class II Cream (Major Northeast Cities): $2.2656(-.0516)–$2.4544(-.0945).Weekly average (Oct. 22-26): Grade AA: $1.8925(+.0045).

$1.8900NC

Sign up for our daily fax or e-mail service for just $104 a year. Call us at 608-288-9090.

Cash prices for the week ended October 26, 2012

$2.0100 +4

$2.0450 +3 1/2

$1.5600NC

$1.5600NC

$1.8900-1 1/4

$2.0600 +3 1/2

$2.0900 +3 1/2

$1.8900NC

$1.5600 NC

$1.5600NC

$1.8900NC

$1.5600 NC

$1.5600NC

$1.9700 +5 1/4

$2.0100 +1

$1.5600NC

$1.5600NC

$1.9025+2 1/4

$2.0800 +2

$2.1200 +3

$2.0250 +1 1/2

$2.0550 +1

$1.5600 NC

$1.5600NC

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

Page 3: Industry discusses key dairy state election races, farm bill

October 26, 2012 — CHEESE MARKET NEWS® 3

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.

NEWS/BUSINESS MARKET INDICATORS

For more information please visit www.nelsonjameson.com

1-800-826-8302www.nelsonjameson.com

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World’s Best Cheeses acquires CWI assetsARMONK, N.Y. — World’s Best Cheeses (WBC) recently announced that it has completed the acquisition of CWI Spe-cialty Foods’ assets from a secured lender after CWI was put into foreclosure.

“After seven years of ownership by fi nancial institutions, CWI returns to being owned by a cheese entrepreneur,” WBC offi cials say.

WBC offi cials note the acquisition will further increase WBC’s product selection, provide greater savings in lo-gistics and open the full line of products to customers nationwide.

“This acquisition is another great step in achieving our ambitious growth strategy,” says Joe Gellert, president and

owner, WBC. “Combining both businesses will allow us to serve our customers better and continue with exceptional products. It will give us access to new product lines and a distribution platform in California.”

CWI’s facility in Ringwood, N.J., now known as World’s Best Cheeses/CWI, will remain operational until late winter 2013. At that time, a sales and purchasing offi ce will be established in New Jersey, and warehouse operations will be consolidated in Armonk, N.Y.

The Alameda, Calif., division of CWI will remain the same with only a name change — World’s Best Cheeses West Inc. Customers will be able to order from any of the sales offi ces. CMN

National Dairy Products Sales Report

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 AMS at 202-720-4392.

Average price1 Sales volume2

Cheese 500-lb. Barrels:Average price1

Adj. price to 38% moistureSales volume2

Moisture content Butter:

Average price1

Sales volume2 Nonfat Dry Milk:

Average price1 Sales volume2

Dry Whey:Average price1 Sales volume2

For the week ended: 10/6/12

$1.958611,755,783

$2.0925$1.9971

10,398,85035.04

$1.90704,160,355

*$1.4402*12,118,973

$0.61047,019,399

$2.032411,635,837

*$2.1419*$2.0368

*10,009,813*34.80

$1.93154,506,781

$1.458714,183,908

*$0.6157*8,196,810

10/13/12 9/29/12

$1.890711,811,904

$2.0033$1.9060

9,603,72734.84

$1.87853,746,743

$1.43919,894,619

$0.60689,940,767

2.088910,887,776

2.17112.0645

9,563,74834.80

$1.93053,416,273

$1.471811,927,835

$.062578,842,367

10/20/12

International Dairy Markets Oct. 26, 2012

Oceania Butter: 82 percent butterfat $3,000-$3,500. Cheddar Cheese: 39 percent maximum moisture $3,800(+100)-$4,100.Skim Milk Powder: 1.25 percent butterfat $3,200-$3,600.Whole Milk Powder: 26 percent butterfat $3,100-$3,500.* 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.

Western and Eastern Europe Butter: 82 percent butterfat $4,100(+200)-$4,350(+150); 99 percent butterfat $4,750(+200)-$5,050(+150).Skim Milk Powder: 1.25 percent butterfat $3,500(+150)-$3,625(+25).Whole Milk Powder: 26 percent butterfat $3,800(+75)-$3,925(+25).Whey Powder: Nonhygroscopic $1,225-$1,450(+50).

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 additional months not included in this chart.

Total Contracts Traded/Open Interest

Cash-Settled NDM

312242216

673925

1

0/902

OCT12NOV12DEC12JAN 13FEB 13MAR 13APR 13

Cash-Settled Butter

OCT12NOV12DEC12JAN13FEB13MAR13APR 13MAY 13JUN 13JUL 13AUG 13SEP 13OCT 13NOV 13DEC 13

Total Contracts Traded/Open Interest

769797706172181

926451584523

8558

42/2,984

190.98184.48172.00171.75172.00173.00174.00177.00179.50181.00182.00183.05180.55180.55180.55

147.03154.00157.00157.25158.00156.10155.50

312242216

673925

1

13/902

190.98185.00172.00170.00170.50172.40174.00177.00179.50181.00182.00183.05180.55180.55180.55

770798706179186

916451584523

8558

30/2,997

147.03152.98157.00157.25158.00156.10155.50

312242216

673925

1

1/903

191.00183.50173.00174.00172.68174.00175.08177.00179.50181.00181.00183.05181.50181.00180.55

770804710184190

906551584524

8568

36/3,018

Fri., Oct. 19 Mon., Oct. 22 Tues., Oct. 23 Wed., Oct. 24 Thurs., Oct. 25*

Fri., Oct. 19 Mon., Oct. 22 Tues., Oct. 23 Wed., Oct. 24 Thurs., Oct. 25

Total Contracts Traded/Open Interest

Fri., Oct. 19 Mon., Oct. 22 Tues., Oct. 23 Wed., Oct. 24 Thurs., Oct. 25

OCT12NOV12DEC12JAN13FEB13MAR13APR13MAY13JUN13JUL13AUG13SEP13OCT13NOV13DEC13JAN14

Class III Milk#

21.0420.6120.2019.4719.1718.9518.8718.6118.6518.6018.5318.4418.2818.1518.1017.62

5,5234,9854,8381,9371,5761,3361,032

964916683687566528418416

5

1,170/26,410

21.0420.7920.3019.5019.1918.9518.8718.6118.6418.5518.5318.4218.3018.1518.1517.62

5,5115,0264,8021,9341,5841,3501,038

972920684690571531428424

5

809/26,470

21.0421.0420.4319.5819.3219.0018.9418.6718.6518.6018.5318.4718.3018.1518.1917.62

5,5355,0794,7971,9731,6121,3551,044

981930686694574535430433

5

1,414/26,663

Total Contracts Traded/Open Interest

Class IV Milk

OCT12NOV12DEC12JAN13FEB13MAR13APR13MAY 13JUN 13

18.5518.7518.6018.7518.8018.8518.2518.0118.01

126134164129130112

772

18.5518.7518.6018.7518.7518.8418.2518.0118.01

126134164131132114

1111

6

97/835

18.5518.6518.6018.7518.7518.8418.2518.0118.01

126134164133134116

1313

8

15/811

CME FUTURES for the week ended October 25, 2012

Fri., Oct. 19 Mon., Oct. 22 Tues., Oct. 23 Wed., Oct. 24* Thurs., Oct. 25*

0/847

18.5518.8518.6018.7518.8018.8518.2518.0118.01

147.03154.00157.00157.25158.00156.10155.50

190.98185.50174.00174.00173.40174.00175.00177.00179.50181.00182.00183.05180.55180.55180.55

23/2,957

1/902

7/797

860/26,337

21.0420.6220.5519.9819.6519.3019.0218.7318.7118.6018.6418.5318.3718.1518.1017.62

787/26,155

18.5518.8518.6018.7518.8018.8518.2518.0118.01

126134164122123105

772

46/790

147.03154.00157.00157.25158.00156.10

-----

312242216673925

-----

27/901

190.05185.00173.50174.00173.40174.00175.00177.00179.50181.00182.00183.05180.55180.55180.55

769791691170179

90 6351584516

8558

46/2,949

5,5184,9494,6401,9551,5741,3261,067

970916670683550500418416

3

126134164129123105

772

312242216

673925

1

769797693170179906351584516

8558

147.03154.00157.00157.25158.00156.10155.50

5,5294,9464,8081,9721,5711,3321,040

970917670682552509418416

5

21.0520.5820.4919.7819.4919.2019.0018.7018.7018.6018.5518.4518.3718.1518.1017.62

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

http://www.nelsonjameson.com/
Page 4: Industry discusses key dairy state election races, farm bill

4 CHEESE MARKET NEWS® — October 26, 2012

Connie Tipton is president and CEO of the International Dairy Foods Association. She contributes this column exclusively for Cheese Market News®.

Perspective:Industry Issues

My 2 cents’ worth onwhat’s at stake Election Day

Stan Andre is CEO of the California Milk Advisory Board. He is a guest columnist for this week’s Cheese Market News®.

Perspective:Dairy Marketing

Seal the deal for pioneering cheese and dairy promotion

G U E S T C O L U M N I S T S C M N E x c l u s i v e !

Terrorists scare me a lot — and they don’t seem to be losing any strength as we watch our embassies and our beliefs undergo threats and attacks in the Middle East and elsewhere around the world. It doesn’t seem so long ago when terrorists attacked our country; we remember all too well in Washing-ton, D.C., and certainly everyone from New York to Chicago to Los Angeles and every small town in between does, too.

While those attacks haven’t been repeated (thankfully), we know the

threat is still there. America’s standing as a respected global superpower and a good citizen of the world seems to be seriously impaired, with displays of open hatred toward America and Americans frequently appearing in world news. To me, none of this is small or insignifi cant for the future of our country.

Economic weakness and rampant un-employment scare me a lot, too. Political infi ghting over who is to blame doesn’t make me feel any better. We need leaders who will stand up for their beliefs, not

point fi ngers at everyone else. We need leaders who will craft and support a pro-growth strategy, reform tax and economic policies, and rein in spending beyond our means to pay for it.

Pro-business legislators in the House of Representatives have been alone in passing policies to reduce spending, balance budgets and revise long-term spending strategies. These are facts, yet it is these very legislators who have been demonized for having “stood in the way” of action in Congress. Others in the House and Senate have refused to deal responsibly with these issues; in fact, their actions have hindered job creation and economic growth. And the administration remains apart from the fray, offering little hope for compromise and action to the weary public.

Compared to terrorists and economic viability, farm and dairy policy issues seem somewhat trivial. But it is these individual building blocks, like farm policy, each looked at in isolation, that add up to a federal budget that is out-of-control and unsustainable.

Let’s take dairy policy as an example. The International Dairy Foods Associa-tion has long supported safety net pro-grams for dairy farmers that encourage economic signals from the marketplace, rather than just from government policies, to drive decisions by producers, processors and manufacturers. Replacing price supports and direct payments with

margin insurance would be a great step in the right direction, but not with the over-lay of supply controls currently in both Senate and House farm bill provisions.

We are also long overdue in giving serious consideration to phasing out Federal Milk Marketing Order pricing provisions. These are punitive on Class I processors and will increasingly play havoc with markets as they move milk differently than markets would dictate.

These regulations are just one ex-ample of what’s wrong with government. Federal orders were fi rst put in place as Depression-era policy, yet there is no regular review process to consider current relevance or need of these long-standing regulations. The dairy industry can’t be alone in this; similar regulations and laws surely exist in many other sec-tors of our economy and society, adding to the burden and cost of government on businesses of all sorts. Our president and Congress should provide the leadership to make sure government doesn’t just keep growing with no thought to whether existing programs or even agencies make sense in today’s world.

The elections on Nov. 6 could change the course on any or all of these things, as well as tax, entitlement and healthcare reform; every one of these issues is critical and needs to be addressed. Your partici-pation in the election process and your

October and fall are busy times for dairy marketing as promotional efforts ramp up. Cheese and dairy products play starring roles in fall cooking and holiday entertaining and meal plan-ning. October also marks a milestone in our marketing efforts for California dairy — the fi fth anniversary of the Real California Milk (RCM) seal. Like the cheese seal before it, this certifi cation mark has opened doors signifi cantly to new markets for California dairy prod-ucts made with 100 percent milk from our California dairy families, families that are currently struggling is this diffi cult economy.

The reality of today’s dairy industry and the challenges farmers face are be-ing felt nationwide but especially in the No. 1 dairy state where we are respon-sible for 21 percent of the nation’s milk supply. And now, more than any other time, it is essential to have aggressive and effective dairy marketing efforts not just to maintain the markets we have but to identify and build the markets of tomorrow. That means looking outside our comfort zone and thinking outside the carton and jug.

California has a much-deserved reputation for innovation in many areas, including the way we market

dairy. When you make as much milk as we do, you have to get really creative at taking it to market. Moving from a state to a national and now to an in-ternational marketing organization has been critical. The RCM seal was part of a strategy to help take us there. Once we determined that future growth for California meant not just cheese, which uses almost half of our milk supply, but also manufactured dairy products — the direction was clear.

Today more than 116 processors are using the seals on hundreds of products; the cheese seal is approaching its 20th year; and we are actively marketing dairy not just in the United States but in Mexico and 11 Asian countries. The seals have become recognized symbols of dairy made with 100 percent Cali-fornia milk, identifi able by consumers because of a cutting edge approach to dairy promotion that is putting these products in front of consumers where they live, work and play.

It’s no secret that today’s market-place is a new frontier. Competition for food dollars is at an all-time high at the same time that competition for consumer attention is tighter than ever. With so many ways to get information, cutting through the clutter with a clear marketing message is more diffi cult and even more critical. The modern consumer doesn’t want to be marketed to she wants to build a relationship with the brands she buys. That means advertising and promotional activities

must be engaging, entertaining and share-worthy.

This is another area of innovation — creating advertising that builds an affi nity with your product (for us, that means not just dairy but dairy from our state) AND delivering it to consumers in a way that allows them to interact with and “experience” it. For our target dairy consumer, the women age 25-54 who are the primary dairy shopper, that means television where they are still spending an average of 47 percent of their leisure time as well as the other screens they are using, often at once. This multiscreen mom is the new target, and we need to be where she is spending her time.

Advertisers don’t have the captive audience they used to. Successful ad-vertising today is advertising that people stop what they’re doing and choose to watch, and really successful advertising is advertising they truly connect with and can interact with and talk about and share.

Digital media or advertising online keeps that conversation going. Ban-ner ads, rich media or video ads, even augmented reality ads spread the message across hundreds of websites that consumers visit exposing our seals and dairy message millions of times and driving traffi c to our own website, realcaliforniamilk.com or our Facebook page where deeper conversations about California dairy products continue.

Turn to TIPTON, page 8 D

Turn to ANDRE, page 8 D

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

Page 5: Industry discusses key dairy state election races, farm bill

NEWS/BUSINESSOctober 26, 2012 — CHEESE MARKET NEWS® 5

For more information please visit www.johnsonindint.com

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©

Johnson Industries has been dedicated to serving the needs of cheese makers and processors around the world for over four decades. Our commitment to quality, service and exceeding expectations has positioned us as a long-term valued partner for our customers.

Our focus on industry trends and customer needs allows us to react quickly by providing timely solutions enabling our customers to capitalize on market opportunities and conditions.

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Relco acquires Stoelting Process product lineWILLMAR, Minn. — Relco LLC this week announced the acquisition of the Kiel, Wis.-based product line of Stoelting Process Solutions.

The Process Solutions division designs and manufactures a full line of cheesemaking equipment and has a long history of providing high quality cheese vats, curd tables, block formers, draining and matting conveyors and salting belts.

The product line directly integrates with Relco’s existing cheese plant products which include milk receiving and storage, pasteurization/standard-ization, cheese plant automation and whey processing systems, says Loren Corle, president, Relco LLC.

“The acquisition allows Relco to expand our offering of equipment to the cheese processing industry, provid-ing a total turnkey package from milk receiving through whey processing including automation and installation,” Corle says.

She notes that customers should see a seamless transition as key sales, engi-neering, service and design employees

have been retained by Relco. “All existing orders, projects and

customer commitments will be honored and completed as previously agreed to,” Corle says.

Manufacturing will continue at the Kiel facility for a period of time before making a transition to Relco’s fabrica-tion shop in Willmar, Minn.

Relco has been a strategic part-ner with Stoelting since 2008, sell-ing and distributing cheesemaking equipment. The Stoelting brand name will be retained and sold glob-ally through its three offi ces: Willmar, Minn.; Drachten, the Netherlands; and Auckland, New Zealand. CMN

Restructuring of FAGE yogurt company puts headquarters outside of GreeceLUXEMBOURG — The Greek yogurt company FAGE recently announced that it has completed an internal restructuring, and as a result, FAGE International S.A., a newly-formed Luxembourg-based corpo-ration controlled by Ioannis and Kyriakos Filippou, now is the parent company for all of the FAGE Group’s operations.

FAGE operations in Greece now are held through the company’s Greek subsidiary, FAGE Dairy Industry S.A. (the group’s former parent company), and FAGE’s operations outside of Greece currently are held through its newly-formed Luxembourg subsidiary, FAGE

Luxembourg S.à.r.l.FAGE began in 1926 with a dairy

shop in Athens, Greece, established by the family of Athanassios Filippou, the grandfather of the company’s cur-rent CEO and chairman. Following the restructuring, the group remains 100-percent owned and led by members of the Filippou family.

“This restructuring reflects the fact that our dairy operations have grown from our base in Athens to become an increasingly interna-tional business,” says FAGE chairman Athanassios-Kyros Filippou. CMN

FARM Animal Care Program report shows adherence to guidelines is strong

ARLINGTON, Va. – A report issued Oct. 25 on the National Dairy FARM Animal Care Program found that subscribers are doing a thorough job of adhering to its multifaceted approach to compre-hensive dairy animal well-being.

Since enrollment began in September 2010, the FARM Animal Care Program has been implemented on dairy farms that ac-count for 41 percent of the nation’s milk supply. Participation in the FARM program is anticipated to exceed 70 percent of the nation’s milk supply in 2013, the National Milk Producers Federation (NMPF) says.

Data collected from more than 5,000 second-party evaluations of FARM par-ticipants in June found that:

• 99.2 percent of farm operators engage in dairy animal observations to identify any potential health issues;

• 99 percent of farm operators train personnel to handle and restrain calves with a minimum of stress to the animal;

• 95.5 percent of farm operators train personnel in proper methods to move non-ambulatory animals;

• 72.7 percent of farm operators have emergency plans to address animal care needs stemming from unique cir-cumstances such as a natural disaster;

• 68 percent of farm operators apply antiseptic to the navels of calves after birth as a preventative health measure.

The FARM program also utilizes an independent third-party process to ensure that its practices are being adopted. The third-party verifi cation for implementation of the program in 2012 is currently under way. CMN

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

http://www.johnsonindint.com/
Page 6: Industry discusses key dairy state election races, farm bill

6 CHEESE MARKET NEWS® — October 26, 2012

For more information please visit www.walkerep.com

NEWS/BUSINESS

lower than a year earlier. Production per cow in the United States averaged 1,708 pounds in September, down 7 pounds from a year earlier.

Milk production in the United States during the July-September quarter totaled 48.72 billion pounds, up 0.1 percent from the same quarter a year earlier. The average number of milk cows in the United States during the quarter was 9.22 million head, 15,000 head more than the same period last

year.In the 23 major states in September

2012, there were 8.47 million cows, down 25,000 head from August 2012 but still 5,000 head more than a year earlier. Production per cow in the 23 major states averaged 1,732 pounds in September, down 10 pounds from a

year earlier.California, the nation’s No. 1 milk-

producing state, produced 3.18 billion pounds in September, down 3.9 percent from a year earlier. There were 1.78 mil-lion cows on California farms, 3,000 head less than a month earlier but 3,000 head more than in September 2011. Average production per cow in California was down 75 pounds from a year earlier to 1,790 pounds.

Wisconsin followed with 2.19 bil-lion pounds of milk in September, a 2.9-percent increase from its production a year earlier. There were 1.27 million cows on Wisconsin farms in September, unchanged from the previous month but 7,000 head higher than a year earlier. Production per cow in Wisconsin aver-aged 1,720 pounds in September, up 40 pounds from a year earlier. CMN

NASSContinued from page 1

Even if Congress passes an exten-sion, that would draw the process out as it is likely that if a new president or new House or Senate leadership takes shape in January, lawmakers are likely to want to start the process over and write their own bill, she adds.

Dale Moore, deputy executive direc-tor of public policy for the American Farm Bureau Federation, notes that the dairy industry will be one of the fi rst sectors affected by a continued lack of progress on the farm bill.

He says it’s likely that Congress would pass an extension in the lame duck rather than do nothing.

“I think and hope that common sense will prevail, and the farm bill will get passed,” he says. CMN

ELECTIONContinued from page 1

Rochester Cheese to expand facilityDAVENPORT, Iowa — Rochester Cheese has announced expansion plans for its Rochester, Minn., location.

The site, which currently serves as a warehouse and distribution center, will be expanded to include production lines for the company’s club and pasteurized process cheeses.

“The move was based on growth of the business and an increased need for production capabilities,” says Jeff Saforek, vice president and general manager of dairy ingredients for Swiss Valley Farms, the parent company of Rochester Cheese.

Currently, production of the club and pasteurized process cheeses is handled by Rochester Cheese’s Spring Valley, Minn., location. Once the production transition is complete, Spring Valley will remain in an active capacity as a warehousing and contingency production site. All Spring Valley employees have been offered posi-tions at the Rochester location.

The target date for comple-tion is set for March of 2013. CMN

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

http://www.walkerep.com/
Page 7: Industry discusses key dairy state election races, farm bill

October 26, 2012 — CHEESE MARKET NEWS® 7

For more information please visit www.printpack.com/cheese

NEWS/BUSINESS

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Whey processor, University of Wisconsin Athletic Department, CDR release Red WheyMADISON, Wis. — Red Whey, a tart cherry juice and whey protein bever-age, has been released in Wisconsin. The new exercise recovery beverage is a result of a collaboration between the University of Wisconsin-Madison (UW) Athletic Department, the Wisconsin Center for Dairy Research (CDR), a Wisconsin whey processor and Country Ovens-Cherry De-Lite.

“We are always looking for ways we can all work together, especially as a dairy state,” says John Dettmann, director of strength and conditioning for the UW Badgers and a developer of Red Whey. “We knew that we wanted to develop a natural, nutritious recovery drink for our student athletes and with CDR, one of the world’s best dairy re-search institutions less than 5 minutes away, we were happy to have an oppor-tunity to collaborate with someone on the UW campus as we assign value to those partnerships.”

Dettmann says he contacted CDR Dairy Ingredient Applications Coor-dinator K.J. Burrington to assist in formulating a natural recovery drink that would provide UW student athletes with a whey protein option that meets NCAA nutritional requirements.

Dettmann also contacted Mike Johnson, president of Country Ovens in Forestville, Wis., to see if he would be willing to provide the cherry juice for the drink as well as manufacture the end product.

“We were so pleased to be ap-proached by the UW Athletic Depart-ment,” Johnson says. “As a Wisconsin sports fan, farmer and manufacturer, I

am happy to work with our partners at UW-Madison to develop a product for UW student athletes using Wisconsin ingredients.”

The end product, Red Whey, contains 100 percent tart cherry juice from Coun-try Ovens and 12 grams of whey protein, making it a recovery drink for athletes as well as a locally-made, natural sports drink for the general public.

“There are very few products out there that contain 100 percent juice as well as a signifi cant amount of protein,” Burrington says. “We’ve formulated a simple product with a clean label that contains a unique balance of amino acids that aid in muscle recovery.”

Red Whey also provides athletes with carbohydrates for energy, potas-sium for electrolyte replacement and nutrients available in the cherry juice. Johnson says that cherry juice is being called the new “Super Fruit,” as it is high in anthocyanins (anti-oxidants) that may mitigate tissue infl ammation and help reduce post-exercise muscle and joint pain.

“In the end, we have a great product that has been a big win for the UW Athletic Department as well as the state of Wisconsin,” Dettman says. “The product is outstanding. I think our biggest challenge will be keeping enough in stock.” CMN

IDFA weighs in on proposed FDA studies of nutrient content claimsWASHINGTON — FDA is looking to study whether fortifi cation and labeling of certain snack foods could cause con-sumers to believe they could substitute these products for more nutritious foods to ensure a nutritionally sound diet.

The agency is seeking to measure consumer responses to nutrient content claims on the labels of snack foods such as cookies, carbonated beverages and candy, and has solicited comments on its research plan.

In comments submitted last week, the International Dairy Foods Asso-ciation (IDFA) says the foods that the study uses for sample labels should not include snacks that naturally contain benefi cial nutrients, such as yogurt, but should be snack foods that are naturally low in nutrient value prior to fortifi cation, such as chips or candy. These low-nutrient foods have already been identifi ed as inappropriate for fortifi cation by FDA’s Fortifi cation Policy, IDFA notes.

Noting that many dairy products, such as lowfat varieties of milk, are required to have nutrients added, IDFA says many other dairy products are forti-fi ed with additional nutrients to provide consumers with naturally nutrient-rich foods with added benefi ts.

“Fortifi cation of many foods is useful to help consumers improve their health, such as vitamin D fortifi cation of milk or folic acid fortifi cation of refi ned grain products,” IDFA says.

IDFA also notes the results from the study should be applied “care-fully and judiciously” to avoid draw-ing overly broad conclusions that could affect all fortifi ed foods. CMN

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

http://www.printpack.com/cheese
Page 8: Industry discusses key dairy state election races, farm bill

vote are important rights of citizenship. Be sure you vote — and take someone to the polls with you!

After the last election is called, the cur-rent Congress will return to Washington for a lame-duck session beginning Nov. 13. Election outcomes will make a dif-ference in what gets done this year vs. in the next Congress. Electing pro-business, pro-growth candidates in both the House and Senate could turn the tide enough to break the logjam in Congressional action.

Likewise, a pro-business adminis-tration would move quickly to get the economy moving in the right direction,

8 CHEESE MARKET NEWS® — October 26, 2012

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LLL5?=CJ?85BE>MAEE8

For more information please visit www.tgiltd.com/food

You may ask what online games, playful apps and fake farming have to do with effective dairy marketing. The answer is: everything. Just as the expres-sion says, “If you want to catch fi sh, fi sh where the fi sh are,” so goes the world of food marketing today. That means offering games, apps, social media tools and more to consumers and their families, giving them ways to interact with you in a non-commercial way on their digital devices, and making sure everything you create can be shared with their friends and family members.

Yes, consumers still want coupons,

while protecting the country’s foundation of free enterprise. The right leadership would make a vast difference in our economic and social well-being.

Fortunately, we have the opportunity to bring about change in Washington when we don’t like what’s happening —or not happening. Casting well-reasoned and well-informed votes on Election Day also could help to ease our fears about the things that are out of our control. We can make a difference.

That’s my 2 cents on what’s at stake on Election Day. CMN

The views expressed by CMN’s guest columnists are their own opinions and do not necessarily refl ect those of Cheese Market News®.

they want to sample, they look for cook-ing tips and recipes but they also want experiences. Diving into this new world makes a category like dairy — which can be considered a boring staple — mod-ern, current and relevant. And that is the ultimate prize for marketers — being part of the world our consumers live in today so we’ll be part of their purchase decisions in the future. CMN

The views expressed by CMN’s guest columnists are their own opinions and do not necessarily refl ect those of Cheese Market News®.

TIPTONContinued from page 4

ANDREContinued from page 4

Dairy workshops sponsored by UW-River Falls incorporate new online elementsRIVER FALLS, Wis. — The Univer-sity of Wisconsin-River Falls-sponsored Dairy Processing Workshops will begin using online tools to a greater degree to market the workshops and provide select course content.

Brochures that advertise the courses will no longer be delivered by mail. In-terested participants now will receive a postcard or e-mail each year in early fall directing them to the website, www.uwrf.edu/anfs/dairyprocessingwork-shops, for updated information and registration forms. Contact [email protected] with questions or to be added to the mailing list.

UW-River Falls began sponsoring the workshops in 1990 in response to the requirement for farmstead operators to obtain a cheesemaker’s license. There also was a need for dairy plant workers in the northern half of Wisconsin to have access to courses.

Those developments led to the creation of a number of courses: Pasteurization for Trained Operators, Producing Safe Dairy Products (online course), Sanitation for Farmstead Dairies (online course) and the Basic Cheesemaker’s License course.

The workshops were implemented by Ranee May, who retired from UW-River Falls as an instructor and dairy plant manager in 2011 after nearly 30 years with the university. May now runs Ranee May Consulting LLC, a private fi rm special-izing in dairy education and processing consultation, and will continue to lead the workshops as a consultant to the university.

Upcoming workshops offered by Ra-nee May Consulting LLC and sponsored by the University of Wisconsin-River Falls are:

• Producing Safe Dairy Products (online course), Jan. 7-Feb. 15;

• Sanitation for Farmstead Dairies (online course), Feb. 18-March 29;

• B a s i c C h e e s e m a k e r ’ s License, April 16-19. CMN

G U E S T C O L U M N I S T S

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

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Page 9: Industry discusses key dairy state election races, farm bill

NEWS/BUSINESSOctober 26, 2012 — CHEESE MARKET NEWS® 9

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REAL SEALContinued from page 1

organizations agreed that the transfer was the best opportunity to place a renewed emphasis on highlighting the importance and value of American-made dairy foods. (See “Management of Real Seal for dairy transfers to NMPF” in the March 30, 2012, issue of Cheese Market News.)

The previous Real Seal website ex-isted primarily as a resource for dairy product manufacturers and marketers interested in putting the Real Seal on their packaging. The new website will contain more content to educate con-sumers about why they should look for the Real Seal on the foods they buy while also continuing to provide information for those companies using the Real Seal to enhance their product marketing.

“Research has found that 93 percent of consumers know of the Real Seal and that many people fi nd it useful in mak-ing buying decisions,” says Jerry Kozak, president and CEO, NMPF.

Kozak notes that imitation products made from vegetables and nuts, but packaged like real dairy products and often using dairy names, have prolifer-ated in the last few years.

“For example, frozen desserts made out of soybeans are packaged the same as real ice cream made from cow’s milk, with pictures that make it look like real ice cream,” he says. “The only way a consumer

would know the product isn’t ice cream is by reading the ingredients label.”

He adds that the same is true for other processed foods made with imita-tion dairy products.

“Currently, frozen pizza is essentially the only processed food that uses the Real Seal,” Kozak says. “We intend to expand the products eligible to use the Real Seal beyond that category.”

To address expanded use of the Real Seal, the seal itself is in the process of being tailored to other applications. Terms such as “made with” real dairy and “American made,” as well as specifi c dairy product names, will be stacked above and below the basic Real Seal, Kozak notes.

“Our goal is to have a fully-integrated program up and running early in 2013,” he says. “We know dairy farmers are

enthusiastic about the Real Seal, and we’re excited about the tremendous potential this has for expanding sales

of dairy products made from U.S. dairy farmers’ milk.”

Kozak adds that consumers continue to express an interest in food quality and integrity through the choices they make at grocery stores and restaurants.

“Labeling is an integral part of cre-ating and maintaining a dialogue with them,” he says.

As a result of the change in manage-ment, the program will now strive to edu-cate new generations of dairy consumers about the signifi cance of the Real Seal, revitalizing the brand and talking about the good taste, nutritional value and wholesomeness associated with dairy foods and dairy food ingredients made from milk produced in the United States, Kozak says.

For more information, v is -it www.RealSeal.com. CMN

Pearson Packaging Systems and Moen Industries join forcesSPOKANE, Wash. —Pearson Packag-ing Systems, a manufacturer of second-ary packaging equipment for dairy, bev-erage and food industries , has acquired Moen Industries, a Los Angeles-based producer of packaging equipment and corrugated packaging designs.

Michael Senske, president and CEO of Pearson Packaging Systems, will lead the company under the Pearson Packaging Systems name from the company’s headquarters in Spokane. Pearson also will retain Moen engineering, service and sales support in the Los Angeles area.

“Pearson’s acquisition of Moen Industries will translate into signifi -cant benefi ts for our customers,” says Senske. “Moen Industries’ patented tray former technology adds a new dimension to our current product portfolio, enabling us to offer the most complete range of integrated secondary packaging equipment available under one roof in the City of Industry today. This provides buyers with the highest equipment effectiveness and the lowest total cost of ownership from streamlined products, service, parts and support.”

Plans call for expansion of Moen’s tray former product line, expanding the number of op-tions available to customers. CMN

“Research has found that 93 percent

of consumers know of the Real Seal and

that many people fi nd it useful in making buying decisions.”

Jerry KozakNATIONAL MILK

PRODUCERS FEDERATION

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

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Page 10: Industry discusses key dairy state election races, farm bill

10 CHEESE MARKET NEWS® — October 26, 2012

NEWS/BUSINESS

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“The immediate effect of our Weber 305 purchasewas to reduce cheese slicing time from 3.5 to justone shift per week,” Mike says. “Longer term, the305 gave us the capacity to seek more business.We successfully added two large accounts in thenext 18 months.”

Tighter control of food costs is another way thatWeber is helping Delco Foods and their customers.“Because our Weber slicer adjusts so perfectly tothe softness of the product, we get great qualityslices from a wider range of moisture levels. Our mozzarella stacks used to look like a poorly

shuffled deck of cards. Now they’re tight and almost too perfect,” Mike says with pride.

Portion control –“another big issue with customers”–is also now under control, Mike says. “Sliceweights are always on the dime. Our customersknow that eight slices on their pizzas will always bethe same. They appreciate the precision and theability to control their food costs,” Mike says.

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FSMA also calls for food processing facilities to re-register with FDA bien-nially and provide data and product performance standards on foodborne contaminants. Facility inspections also will be more common, with one inspection required at least every fi ve years. Food processing facilities also will have to submit products for testing to federal or accredited independent laboratories.

The Congressional Budget Offi ce (CBO) has estimated FSMA will cost the federal government $1.4-$2 billion to implement. The Centers for Disease Control (CDC) estimates food-related

illnesses cost $77 billion each year in the United States.

A recent paper, “Review of the FDA Food Safety Modernization Act (FSMA): What it means, where it is headed, and why it matters,” published by Cory Belden and David Orden of Virginia Tech University, says instances of foodborne illness have been on the rise in recent years, in part because consolidation of food processing into fewer, larger facilities has led to wider distribution networks for food.

Depending on the fi nal language of the law, however, Belden and Orden say that implementing the technology to comply with some provisions of FSMA could have a disproportionate adverse effect on smaller producers.

“Due to the costs and documenta-

tion burden associated with compli-ance, smaller producers are concerned about how the new legislation may affect their overall competitiveness. Large fi rms like Kellogg’s or Kraft will have less diffi culty paying fees or meet-ing regulatory demands compared to smaller ones, especially because the main food safety technologies have fi xed costs (not sliding), so the mar-ginal costs drop as plant size increases. These disadvantages could have nega-tive impacts, especially because local production systems and markets have been regaining popularity,” Belden and Orden say.

Previous regulations have resulted in poor outcomes for smaller food fi rms, and dairy producers in particu-lar, Belden and Orden add, with many

smaller farms disappearing or par-ticipating in direct marketing without regulations due to more stringent food safety regulations.

Since the introduction of FSMA, exemptions in the law have been anticipated for smaller food proces-sors. FDA, however, hasn’t fi nalized how “smaller processors” will be defi ned. One possibility is exemption for businesses with sales of less than $500,000 per year, a confi ned distribu-tion of less than 275 miles, or those that sell half of their product directly to end users. Those rules would be able to be manipulated by the FDA if a smaller business was found to pose a food safety risk.

“Scaled solutions, where tech-nologies and control methods depend somewhat on the size of production and the context could be more appropriate than pure exemption (for smaller busi-nesses). However, the inspection costs and complications for the government may be even higher with an even further diversifi ed food safety system,” Belden and Orden say.

John Kadinger, market manager for Key Technology — a fi rm based in Walla Walla, Wash., that manufactures automated conveyors, sorters and shakers for an array of food process-ing clients — says integrated product traceability and record keeping have been the biggest shift in technology since the advent of FSMA because many clients already meet other re-quirements of the law.

“One of the biggest things in FSMA is maintaining records through inte-gration,” Kadinger says. “But (FSMA) is almost symbolic because many of the people we deal with have already gone through Safe Quality Foods (SQF) certifi cation and Hazard Analysis and Critical Control Points (HACCP) plan-ning, so they already have those types of plans in place.”

Jody Zepnick, president of Zepnick Solutions Inc. — a Green Bay, Wis.-based company that specializes in automation technologies for a range of industries, including cheese and dairy processing — says integrated data collection technologies have improved dramatically in recent years and will become more widespread once FSMA is implemented.

“You used to have to install a separate data collection system to pull key data off the fl oor. Now we can integrate that technology and pull live production data directly from the scales or printers,” Zepnick says. “You can put date codes directly on cases or bags and track them as they go through the system and go onto individual pallets. We know exactly where each box is.”

Smukowski, who works with dairy producers and processors of all sizes to ensure product quality and safety, says traceability and record-keeping technologies outlined in FSMA are not used at many smaller facilities.

“ B i g g e r c o m p a n i e s h a v e

FSMAContinued from page 1

Turn to RECORDS, page 11 D

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

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Page 11: Industry discusses key dairy state election races, farm bill

NEWS/BUSINESSOctober 26, 2012 — CHEESE MARKET NEWS® 11

RECORDSContinued from page 10

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computerized systems and programs (for product traceability and record keeping). Some smaller companies write everything out and document every single lot number by hand — what rennet, calcium chlorides and starters were used. Some do it very well, and for some it’s a little more diffi cult,” Smukowski says.

Recent technological advance-ments, however, have made integrated data collection technology more cost-effective for smaller or mid-sized facilities.

“In previous years controllers for these systems used to cost fi ve to 10 times more than what we can do to-day,” Zepnick says. “It doesn’t require a multi-million dollar system to meet all the criteria.”

Integrated data collection appears to be the future of the food processing industry for producers large and small. Dermot Carey, senior vice president of Darigold Inc., says such systems “are a requirement for doing business” because they can protect a company’s reputations — and its bottom line. Carey announced in June that the com-

pany had volunteered to participate in a pilot traceability program coordinated by the Innovation Center for U.S. Dairy through checkoff funds.

As the dairy industry awaits fi -nalization of FSMA, manufacturers of food processing technology will continue to design and develop cost-effective products that are ready to meet the changing demands of their clients.

Zepnick Solutions now offers a Vi-sion Leak Detection System that can be used to inspect 40-pound blocks of cheese using a low-resolution camera that compares contrasting gray areas to identify leaks. The company also is developing an automation inspection system for a customer whose qual-ity criteria include shape and volume verifi cation.

Key Technology’s recently-released FoodSafetyPro line of products — which includes optical sorters, defect removal systems and a suite of system audit prod-ucts for remote equipment monitoring and HACCP employee training — can help a range of food processors meet FSMA requirements. The system cap-tures and stores images of product de-fects and helps processors meet record keeping and traceability records out-lined in FSMA, the company says. CMN

Kraft unveils marketing for Cracker BarrelGLENVIEW, Ill. — Kraft Foods Group Inc. has announced that it will roll out a new integrated marketing campaign for Cracker Barrel cheese, marking the fi rst time in more than a decade that the brand will advertise nationally.

The campaign includes television, print, digital, partnerships and in-store elements that highlight Cracker Barrel cheese. Developed by Droga5 New York, the advertising work sheds light on the unique, passionate, yet little-known world of professional cheese judging. The television spots unveil the meticu-lous methods and idiosyncrasies of this distinctive group of experts.

“As the makers of Cracker Barrel cheese, we have tirelessly pursued the

perfection of Cheddar for nearly 60 years,” says Gwen Gray, senior director of dairy snacking, Kraft Foods Group. “Our new advertising campaign pays homage to the experts — the cheese judges — who seek cheese perfection every day.”

Cracker Barrel cheese is available in a variety of fl avors — including award-winning Aged Reserve, Extra Sharp Cheddar and 2% Reduced Extra Sharp Cheddar — with serving options such as blocks, bars, slices and cracker cuts. Cracker Barrel cheese is available at grocery and superstores for a suggested retail price of $3.99 per 8 -ounce package.

For more information about Cracker Barrel cheese products, visit www.face book.com/crackerbarrelcheese. CMN

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

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Page 12: Industry discusses key dairy state election races, farm bill

12 CHEESE MARKET NEWS® — October 26, 2012

NEWS/BUSINESS

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Baker Tilly Virchow Krause releases report, waste-to-energy toolkit for dairy industryMADISON, Wis. —Many opportunities are available in Wisconsin to take advan-tage of waste-to-energy technologies, according to a new report.

Baker Tilly Virchow Krause LLP (Baker Tilly) — an independent mem-ber of Baker Tilly International based in Madison, Wis. — and the Wisconsin State Energy Offi ce (SEO) have part-nered to develop an action plan aimed at assisting dairy farms and cheesemaking facilities in reducing waste, reducing land spreading, curbing impacts on lo-cal wastewater facilities and harnessing available energy sources.

“The state asked us to look at energy potential from agricultural resources including cheese stocks,” says Cory

Wendt, agriculture, energy and food and beverage manager for Baker Tilly.

The goal was to create a win-win situation for Wisconsin’s cheesemakers and dairy farmers by demonstrating that waste, as an alternative energy source, can generate new sources of revenue and support operational growth.

The report identifi es sustainable room for growth based on current es-timates of available waste in the state.

Wendt notes the outcome of the col-laboration demonstrates that alterna-tive wastewater treatment options can be economical, feasible and fi nancially viable in certain scenarios.

Wisconsin currently has about 126 cheese manufacturing plants, many of

which have recently executed, or are in the process of executing, signifi cant expansions at existing sites or new greenfi eld facilities, the report notes. Often, the limitation on a manufac-turer’s ability to expand is driven by its ability to manage the co-products produced as a result of the expansion, some of which may be used as feedstock for on- or off-site digesters.

The scope of the report’s feedstock assessment was limited to dairy farm-ing operations (with a primary focus on confi ned animal feeding operations (CAFOs)), cheese plants and publicly-owned treatment works (POTW).

There are a variety of other in-dustries within Wisconsin whose

byproducts may be compatible with feedstocks referenced in the report, including butter, yogurt, secondary whey, vegetables, and meat processing plants. There also are additional higher solids content feedstocks available from a variety of food processing and municipal applications.

The report also notes the cheese processing industry generates substan-tial amounts of potential feedstocks from handling and processing of fi n-ished products; however, the report says it is not clear if conversion of these types of feedstocks to energy is the highest value use, and the assess-ment of this was outside the scope of the report.

Wendt says that when examining the potential feedstock availability from cheese plants in Wisconsin, one challenge was to calculate how much feedstock is actually being created.

The cheesemaking process (and resultant feedstock availability) can vary depending on a large number of specifi c factors, including type of product processed, raw product quality, plant size and age, plant processing rate/capacity, type of equipment used to process cheese products, water usage in the processing, housekeeping (such as waste minimiza-tion techniques used at the plant), and value-added or secondary processing of cheese production co-products.

An additional challenge when evalu-ating energy opportunities is determin-ing, on an individual plant basis, where the byproducts are currently going, Wendt says.

An analysis several years ago by Dr. Bill Wendorff of the University of Wisconsin-Madison food science de-partment indicated that potential energy feedstocks from Wisconsin cheese plants were discharged via the following pathways: on-site treatment plant, 14 percent; pre-treatment system, 15 percent; sent to a municipal POTW, 42 percent; use of a ridge and furrow system, 12 percent; use of a pond or lagoon, 22 percent; land spreading, 55 percent; and other, 2 percent.

Using a number of sources, including technical experts, confi dential industry data and prior studies on the subject matter, the report assumes 1 gallon of high-strength feedstock for every 51.6 pounds of milk processed at a cheese plant. The assumed strength of the feed-stock was approximately 0.61 pounds of chemical oxygen demand (COD) per gallon of high strength feedstock.

There is about 8.65 cubic feet of biogas per pound of COD, with 65 percent methane content within the biogas produced.

The report assumes that 26 billion pounds of milk or milk equivalents are processed at Wisconsin cheese plants annually and an associated 504 million gallons of feedstock per year or 845,000 pounds of COD per day are available for conversion to biogas. To run a 1-megawatt

Turn to ENERGY, page 16 D

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October 26, 2012 — CHEESE MARKET NEWS® 13

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CHEESE MARKET NEWS® is here to deliver original, straightforward, reliable news to help you run your business more efficiently and profitably. What better way to tap into the effectiveness of this one-stop news source than to advertise your products or services on our classified page or in the display section of our newspaper?

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14 CHEESE MARKET NEWS® — October 26, 2012

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

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Cheese Making SupervisorEstablished and growing Wisconsin cheese plant is looking for a supervisor to manage day-to-day cheese making. This person will work closely with the Production Manager to ensure a quality product. Duties will include: overseeing and scheduling other cheese makers, enforcing GMP’s, SOP’s, sanitation practices and overall company policies. Pay commensurate with previous H[SHULHQFH���:H�RIIHU�D�IXOO�EHQH¿WV�SURJUDP�

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— Equal Opportunity Employer —

Extension Dairy and Food Processing SpecialistUniversity of Idaho, School of Food Science and Idaho Tech-Help in Twin Falls, Idaho has an immediate opening for an Extension Dairy and Food Processing Specialist.

This position will provide technical assistance to dairy and food processors to improve product quality, productivity and global competitiveness. Responsibilities include business development and assistance achieved by establishing relationships with dairy and food manufacturers in southern Idaho, assessing and monitoring business and technical needs, providing technical assistance and workshops/short courses and coordinating with other state, federal and local service providers.

This position reports to the Director of the University of Idaho/Washington State University School of Food Science and the Executive Director of Idaho Tech-Help and will be located in Twin Falls, ,'���0LQLPXP�TXDOL¿FDWLRQV�LQFOXGH�D�%DFKHORU¶V�GHJUHH�LQ�DJULFXOWXUH��HQJLQHHULQJ�RU�UHODWHG�DUHD��¿YH�\HDUV�H[SHULHQFH�LQ�WKH�IRRG�SURFHVVLQJ�LQGXVWU\��H[FHOOHQW�LQWHUSHUVRQDO�DQG�FRPPXQLFDWLRQ�VNLOOV���$GGLWLRQDO�GHVLUDEOH�TXDOL¿FDWLRQV�LQFOXGH�D�0�6��GHJUHH�LQ�)RRG�6FLHQFH��'DLU\�6FLHQFH��)RRG�(QJLQHHULQJ�RU� UHODWHG�DUHD��VHYHQ�\HDUV�H[SHULHQFH� LQ�D� WHFKQLFDO�FDSDFLW\� LQ� WKH�GDLU\�SURGXFWV�SURFHVVLQJ�LQGXVWU\�ZLWK�DSSOLHG�5'��SODQW�RSHUDWLRQV�RU�SODQW�PDQDJHPHQW�H[SHULHQFH��experience in consulting and business development with industrial clients.

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HELP WANTED 7• HELP WANTED 7•

Packaging Manager This position is responsible for the overall function of plant packaging processes to ensure the highest standards of cheese efficiency, sanitation, business development, customer service and team work are maintained.

The Packaging Manager must possess the desire and ability to create and facilitate the continuous improvement for the plant’s process, systems, competencies and infrastructure.

Duties & Responsibilities:�����3ODQ��RUJDQL]H��GLUHFW�WKH�SDFNDJLQJ�RSHUDWLRQV�ZKLFK�HQVXUH�WKH�PRVW�HIIHFWLYH�UHWXUQ� on assets at the plant location �����5HVSRQVLEOH�IRU�PDQDJLQJ�DOO�DVSHFWV�RI �WKH�SDFNDJLQJ�IDFLOLW\�����,QLWLDWH�SODQV��SURFHVVHV�ZKLFK�PLQLPL]H�PDQXIDFWXULQJ�FRVWV�WKURXJK�HIIHFWLYH�XWLOL]DWLRQ�������RI �PDQSRZHU��HTXLSPHQW��IDFLOLWLHV��PDWHULDO��FDSLWDO�����$VVXUH�DWWDLQPHQW�RI �EXVLQHVV�REMHFWLYHV�DQG�SURGXFWLRQ�VFKHGXOHV�ZKLOH�HQVXULQJ� product standards that will exceed our customers’ expectations �����0DQDJH�VSHQGLQJ�DJDLQVW�EXGJHW�DQG�LQ�UHODWLRQ�WR�FKDQJHV�LQ�SURGXFWLRQ�YROXPH������3URYLGHV�OHDGHUVKLS�IRU�SUREOHP�UHVROXWLRQ�WR�IDFLOLWDWH�IDVW�LPSURYHPHQWV�DQG�LPSURYHG� working relationships �����'HYHORS�WHDP�ZRUN�ZLWKLQ�HDFK�JURXS�RI �HPSOR\HHV�DQG�ZLWKLQ�WKH�HQWLUH�SODQW�WR�DFKLHYH�WKH� goal of making a high quality product �����0DQDJH�DFWLYLWLHV�WR�HQVXUH�WKH�KLJKHVW�VWDQGDUGV�RI �FXVWRPHU�VHUYLFH�DUH�PHW�VXFK�DV� special requirements of customers, appearance of final product leaving facility and packaging �����7LPHO\�FRPSOHWLRQ�RI �SURMHFWV�DQG�REMHFWLYHV�RI �WKH�SODQW�DQG�FRPSDQ\�����,PSOHPHQW�DQG�HQVXUH�FRPSOLDQFH�WR�QHZ��H[LVWLQJ�SURFHVVHV�DQG�SURFHGXUHV�����$FFXUDWH�HPSOR\HH�VFKHGXOLQJ�RYHU�PXOWLSOH�VKLIWV�����%XGJHWLQJ�DQG�IRUHFDVWLQJ Job Requirements:�����%DFKHORU·V�'HJUHH���������\HDUV�H[SHULHQFH�LQ�PDQXIDFWXULQJ�VHWWLQJ��&KHHVH�RU�'DLU\�SUHIHUUHG������([SHULHQFH�PDQDJLQJ�SHRSOH�DQG�OHDGLQJ�WHDPV�����([FHOOHQW�LQWHUSHUVRQDO�VNLOOV�����&RQWLQXRXV�LPSURYHPHQW�PLQGVHW�LQ�RUGHU�WR�LPSURYH�ERWWRP�OLQH������$SWLWXGH�IRU�EXVLQHVV�GHYHORSPHQW�DQG�FXVWRPHU�VHUYLFH

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Page 15: Industry discusses key dairy state election races, farm bill

NEWS/BUSINESSOctober 26, 2012 — CHEESE MARKET NEWS® 15

For more information please visit www.wowlogistics.com /cheese_fi nancing

For more information please visit www.cdr.wisc.edu/building

To donate or for more information, please visit www.cdr.wisc.edu/building or www.facebook.com/ShortCourseMillionFund

To date, more than 10,000 have benefited from attending a Wisconsin Center for Dairy Research dairy short course. As a part of the CDR building campaign, Professor Emeritus Bill Wendorff is challenging each of you to join his Short Course Million Fund challenge and donate to the CDR training center.

Are You Ensuring a Bright Future for Dairy Education?

This is your opportunity to contribute to a world-class dairy research facility, ensuring the future of dairy education for generations of dairy manufacturers, producers and researchers to come.

By Rena Archwamety

MADISON, Wis. — The Wisconsin Center for Dairy Research (CDR) is making progress on its campaign for an expan-sion and remodeling of the dairy research and training facilities at the University of Wisconsin-Madison’s Babcock Hall.

The UW Board of Regents recently recommended the Babcock Hall project to the state as one of the key priorities in the university system for funding. The UW system is requesting that the state fund half of the project’s total $32 million cost, while the other half will be provided by supporters of the state’s dairy industry.

“The fundraising aspect of the cam-paign continues to be very successful,” says CDR Director John Lucey. “We have raised over $14 million out of the $16 million needed for our match. Over 40 companies already have committed to the project.”

Lucey says CDR expects that state lawmakers will begin discussing this project in the spring as part of the next Wisconsin biennium budget and he is hopeful that the project will have fi nal state approval by next summer.

“The state has been aware of this project for quite some time because of its importance to the dairy industry,” Lucey says, adding that Wisconsin Gov. Scott Walker has publicly indicated his strong support for this project. The im-

CDR nears fundraising goal for new facility, plans to seek industry input on plant designpact of the dairy sector in Wisconsin is more than $26 billion, and the important role that CDR plays in aiding the devel-opment of the dairy processing sector is well-known, Lucey says. Construction of the project is targeted to start in 2015, with completion by about 2017.

“Up until now the main focus of our efforts was raising money, with a broad overview of the overall concept, programs and new capabilities” Lucey says. “Now we’re looking at specifi c equipment and how best to lay it out so it meets all existing and future needs for food processing facilities. We want to have a world-class facility.”

To do that, Lucey says CDR will be actively encouraging input from the industry, since the industry builds and designs dairy plants on a routine basis.

In addition to support from cheese manufacturers, the campaign also is attracting many supporters from equip-ment suppliers, including packaging companies, as packaging will be among the areas of expanded capabilities in the new facility.

Some of the new and enhanced capabilities planned for the redesigned facility include: the ability to manu-facture and ripen all types of specialty cheese; the ability to make a wide variety of new cultured products, including Greek yogurt; a wide range of packaging for all types of dairy products; protein fractionation for both milk and whey;

and capabilities for producing UHT-type beverages.

“I believe the major reason why so many companies have contributed to, and supported, this project is they fi nd great value in the programs at Babcock Hall,” Lucey says. “CDR helps with their training, research and development support and technical assistance. From the Babcock Hall perspective, students coming out of the program with a strong background in dairy will be very impor-tant for the industry going forward.”

Lucey adds that it’s important to recognize that a large team of individu-

als and groups across the state have been highly infl uential in making this a successful campaign. These supporters include the Wisconsin Cheese Makers Association, the Wisconsin Milk Market-ing Board, the two campaign chairs Dave Fuhrmann of Foremost Farms and Lou Gentine of Sargento, the UW Founda-tion and many other companies and individuals from across the industry.

“I think this is a perfect ex-ample of how the university (CDR), industry and the state have come together and recognized the need to do this,” Lucey says” CMN

By Rena Archwamety

MADISON, Wis. — The Wisconsin Center for Dairy Research (CDR) yes-terday hosted U.S. Assistant Secretary of Commerce Matt Erskine and his staff for a roundtable discussion about how the center will use the i6 Challenge grant it recently was awarded. A tour of the Babcock Hall dairy plant followed.

In September CDR was awarded one of seven $1 million i6 Challenge grants from the U.S. Department of Commerce to support research that will positively impact economic development. (See “UW Center for Dairy Research receives $1 million federal grant to commercial-ize research” in the Sept. 28, 2012, issue of Cheese Market News.)

CDR will work with state, industry and university partners to use the grant to develop new products for fast-growing Asian markets, create new, higher-value uses for cheese and dairy by-products such as whey to grow exports, and de-velop healthier dairy-based alternatives for school lunch menus. The effort is receiving matching support from the Wisconsin Economic Development Council, which will provide $200,000 towards Wisconsin fi rms that seek to commercialize CDR dairy technologies, and from the Wisconsin Milk Marketing Board (WMMB), which will provide ac-cess to detailed consumer, marketing and product innovation databases and

CDR hosts discussion on i6 Challenge grantpromotional support.

Erskine explained that the i6 grant helps to formalize partnerships that otherwise wouldn’t have been formal-ized. He also noted that the grant was extremely competitive, with more than

Turn to GRANT, page 16 D

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

http://www.cdr.wisc.edu/building
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Page 16: Industry discusses key dairy state election races, farm bill

16 CHEESE MARKET NEWS® — October 26, 2012

NEWS/BUSINESS

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80 applications from across the United States. This is the fi rst i6 grant to be awarded in Wisconsin, as well as the fi rst to a food industry-related program.

The roundtable included represen-tatives from the University of Wisconsin as well as state agencies and dairy industry organizations. Participants described the networks between each organization and how they work with each other to help support growth and success in the cheese and dairy industry, and therefore the Wisconsin economy.

During the roundtable, CDR Director John Lucey described the support CDR provides for the industry and how the i6 Challenge grant will help it to actively commercialize its research.

“What we’re seeing at the moment is evidence of a very strong network of groups that are working together to move Wisconsin forward,” Lucey says. “All of this is very positive news for the future of our industry.”

James Robson, CEO of the Wisconsin Milk Marketing Board, explains that Wisconsin produces 25 percent of all U.S. cheese.

“We’re the largest cheese producer in the United States, and it comprises a $26.5 billion economic engine in the state,” Robson says. “So it’s very important in terms of jobs, tax revenue and everything else that helps drive the state.”

Wisconsin Department of Agricul-ture, Trade and Consumer Protection Secretary Ben Brancel says that the research and services CDR provides extend beyond the state of Wisconsin.

“The i6 monies are well-placed. They will do a great deal of benefi t, not only for our state but for the U.S. as a whole,” Brancel adds, noting that innovations that come out of the center inevitably will be replicated elsewhere in the U.S. cheese and dairy industry.

Brancel also says exports are very important to Wisconsin, and CDR has been instrumental in developing prod-ucts for export markets.

“One of the things we’re fi nding in the export world is each culture has their own defi nition of fl avors and styles of food that they like,” Brancel says. “In order for us to change our raw material of milk into components they want, it takes research, then it takes production, then it takes marketing for them to know it is here.” CMN

engine at capacity, approximately 50,000 pounds of COD is needed daily.

Therefore, relative to existing cheese production facilities, the report estimates a potential of approximately 15 to 20 megawatts of generation capac-ity existing in Wisconsin.

For dairy farms in the category of CAFOs, the report estimates potential generation of approximately 60 mega-watts.

Baker Tilly also partnered with the University of Wisconsin-Oshkosh to acquire, implement and maintain testing equipment to be used at the university’s Environmental Research

and Innovation Center. This facility will test outputs from waste generated at cheese plants and dairy farms and will be shared.

The report’s conclusions also note actionable opportunities and provide a set of tools for identifying waste-reducing energy applications in Wisconsin.

The complete report is avail-able at www.bakertilly.com. CMN

ENERGYContinued from page 12

USDA seeks nominees for fl uid milk boardWASHINGTON — USDA is asking fl uid milk processors to nominate candidates for the National Fluid Milk Processor Promotion Board.

Secretary of Agriculture Tom Vil-sack will appoint seven individuals to succeed members whose terms expire June 30, 2013. Appointed members will serve three-year terms.

USDA will accept nominations for board representation in fi ve geographic regions and two at-large positions. Nomi-nees for the fi ve regional positions must be active owners or employees of a fl uid milk processor. At least one at-large posi-tion must be a fl uid milk processor. The other at-large position may be either a fl uid milk processor or a member from

the general public. The geographic regions are: Region 1 (Connecticut, Maine, Mas-sachusetts, New Hampshire, Rhode Island and Vermont); Region 4 (Georgia, North Carolina and South Carolina); Region 7 (Michigan, Minnesota, North Dakota, South Dakota and Wisconsin); Region 10 (Texas); and Region 13 (Idaho, Montana, Oregon, Washington and Wyoming).

Fluid milk processors and interested parties may submit nominations for re-gions in which they are located or market fl uid milk and for at-large members. To nominate an individual, submit a copy of the nomination form and a signed back-ground form for each nominee by Nov. 23. For more information or to obtain a form, visit www.ams.usda.gov/Dairy. CMN

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

http://www.spx.com/
Page 17: Industry discusses key dairy state election races, farm bill

NEWS/BUSINESSOctober 26, 2012 — CHEESE MARKET NEWS® 17

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By Alyssa Sowerwine

ROSEMONT, Ill. — With sales of fl uid milk dropping to a “crisis” point, industry leaders are looking at ways to revamp the category and boost sales moving forward.

“Fluid milk sales have been in a crisis for decades,” says Tom Gallagher, CEO of Dairy Management Inc. (DMI), which manages the producer checkoff, in a recent white paper titled “A Long-Term Turnaround for Fluid Milk: Dairy In-dustry Must Take a Trustee Approach.”

“The problem is clear, and the solution is even clearer: Fundamental change in how we handle, price and market the product is needed, and it is needed now,” Gallagher says.

Gallagher notes that recent sales declines in fl uid milk are very consistent with what the industry has understood through the years about the sale of gallon and half-gallon milk as a commodity at retail, and how price swings affect sales.

Gallagher notes that studies done over several decades as well as DMI’s collective past experience show that while milk is relatively inelastic — meaning a 1-percent price change in a gallon results in less than 1-percent volume change in the opposite direc-tion — compared to other products, the price swings of milk are so large that big changes in consumption do occur.

For example, historically, a 1-percent price change should result in a 0.4-per-cent change in consumption. Thus, a 10-percent price increase would yield a 4-percent decrease in consumption.

Looking at the past 18 months as an example, Gallagher says the effect of price is clear. When price increases peaked in November 2011 at a national average of $4.11 per gallon (a 12.6-per-cent increase over the previous year), volume declined 5 percent, or about 11 million gallons at retail that month.

“The problem is that each time this cycle occurs, we see more and more consumers leave the category or buy less milk than they did previously due to price pressures,” he says. “But some consumers don’t resume purchasing when the price drops back down. So over time, we essentially teach consumers that they can live without milk.”

In recent months, as the price of milk has gone down slightly and retail prices also have decreased, volume sales have not yet responded, he adds.

Speaking with Cheese Market News this week, Gallagher noted that beyond price, there are numerous other fac-tors negatively impacting fl uid milk sales, including packaging, innovation and availability, as well as aging plant infrastructure at the processing end of the industry.

“Working closely with dairy interests, we are proposing to look at these and other fundamental issues that have plagued the milk business for years to determine whether we, as an industry, have the will and ability to address these

Industry looks to revamp sinking fl uid milk sales with innovation, new packaging optionsfundamentals,” he says.

Gallagher says the dairy farmer checkoff is working with a broad group of industry companies to change fl uid milk. While DMI’s charter does not al-low it to enter into pricing and regula-tory discussions, the group can bring together the people and organizations that can, he notes.

As a starting point, DMI is offering seven assumptions regarding fl uid milk:

• The milk industry is in crisis — Milk sales are on a multi-decade decline, thin margins leave little operating capital for innovation investment and bever-age competitors are substantially out-innovating and out-marketing fl uid milk.

• Fluid milk consumption patterns have shifted — Although there has been growth in niche segments such as organic and lactose-free milk over the last few years, the vast majority of today’s milk plant capacity is dedicated to gallon use at home. However, 48 per-cent of consumers’ food expenditures are spent on food away from home, showing they are voting with their dol-lars for convenient solutions, not the traditional gallon, DMI says.

• Generic advertising alone will not change the fundamental issues leading to reduced consumption — Advertising is not enough to turn around the fl uid milk situation, Gallagher says. It is one

element in a portfolio of approaches, and basic concepts of innovation, prod-uct development, packaging, placement and pricing are essential to keeping the category vital and growing.

• No more consumer research is necessary to change the fundamentals —It is now about execution of a plan to change, Gallagher says.

“We know what the consumer wants, how the consumer wants it and where the consumer wants it,” he says. “We all know this, but we aren’t innovating the product to provide it.”

• The regulatory framework of the industry needs evaluation for

Turn to FLUID, page 18 D

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

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Page 18: Industry discusses key dairy state election races, farm bill

18 CHEESE MARKET NEWS® — October 26, 2012

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purposes of modernization — Once non-dairy beverages were allowed to call themselves “milk,” fl uid milk lost a fundamental point of difference and was left with other disadvantages as-sociated with the standard identity for milk, Gallagher says.

“For example, while other products tout ‘99 percent fat free,’ milk is labeled ‘1 percent,’” he says. “What consumer knows what that means? That is a seri-ous disadvantage.”

• Financial constraints limit inno-vation and brand marketing — Thin margins, farm and processor debt, consolidation of retailer power impact-ing slotting and pricing, increased and permanent input costs, and limited ability to pilot new products due to line disruption all are examples of fi nancial constraints to growing the business, Gallagher says.

• Need for a trustee mentality — Gallagher notes that the industry needs to work together to grow the business in a new way, a way that looks at the competition fi rst and foremost as the alternative foods and beverages outside the dairy category.

“As trustees of the entire dairy industry, we must align our thinking to address a larger landscape,” he says.

Gallagher says the list of assump-tions is a starting point for what DMI hopes is a constructive discussion with leaders from across the industry.

Also as part of the fl uid milk revamp-ing effort, DMI at next week’s joint annual meeting of the National Milk Producers Federation, United Dairy Industry Association and National Dairy Promotion and Research Board will hold a panel discussion titled “Can Fluid Milk

Be Saved?” The panel includes John Kaneb, chair of HP Hood LLC; Mike McCloskey, CEO of Select Milk Produc-ers; Terri Webb, industry consultant and former president of Farmland Dairies LLC; and Jim Wegner, president and CEO of Darigold Inc.

In addition, Jose Luis Prado, presi-dent of Quaker foods and snacks for PepsiCo, North America, will speak about the opportunity for fl uid milk in oatmeal.

Gallagher notes that the breakfast occasion is an opportunity for increased fl uid milk consumption, but past efforts have largely focused on pairing milk with cereal.

He says that since this is not a new idea, milk sales will not increase without cereal sales increasing.

Oatmeal, however, presents a new opportunity, as currently only about 15-20 percent of oatmeal is made with milk. With this in mind, the industry is partnering with Quaker on a new retail promotion to promote the use of milk in oatmeal instead of water.

Speaking with Cheese Market Newsthis week, Barbara O’Brien, senior executive vice president, DMI, and president of the Innovation Center for U.S. Dairy, discussed a couple of additional ways the industry is already looking to revamp fl uid milk at retail. O’Brien also will be moderating the fl uid milk panel at next week’s annual meeting.

She notes that while fl uid milk sales in general have declined, there has been some growth in value-added segments, such as organic and lactose-free milk products.

O’Brien notes that the DMI board also did a call for ideas and got several proposals from across the industry on ideas to revamp the fl uid milk category.

Several of the proposals included ideas for lactose-free milk products to better reach the realm of lactose-intolerant consumers, she says. This includes branching out into lactose-free athletic recovery beverages, lactose-free fl avored milks and new sizes to change the price point and grow the category.

“High protein, high calcium and shelf stable are also categories we can explore,” she says.

O’Brien also notes the breakfast opportunity for increasing fl uid milk sales, not only with milk, but possibly with blended products such as milk and juice.

Gallagher notes that while fl uid milk sales are in a crisis, it is a good time for the industry at large to be able to come together and collectively address it.

He adds that companies need to be willing to make the needed investments for real change.

“The purpose of this effort is to create an industry-wide approach to identifying a blueprint for the future milk industry from cow to plant to consumer, the transition plan to get there and a willingness by the dairy industry to do it,” Gallagher says. CMN

FLUIDContinued from page 17

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

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Page 19: Industry discusses key dairy state election races, farm bill

October 26, 2012 — CHEESE MARKET NEWS® 19

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FDA registration of food facilities begins under FSMAWASHINGTON — FDA late last week announced that the updated food facil-ity registration system will be available starting Oct. 22.

Although facilities may register online, via mail or by fax, FDA encour-ages online registration as a quick and effi cient process.

Food producers and manufacturers have long been required to register their facilities with FDA, but the Food Safety Modernization Act improves the registra-tion process by ensuring, among other things, that FDA has accurate contact information for each facility, the Inter-national Dairy Foods Association says.

The new registration form also in-cludes new categories of foods to help FDA rapidly communicate with the right facilities in the event of an emergency.

The current “cheese and cheese product” category, for example, has been subdivided into four categories: soft, ripened cheese; semi-soft cheese; hard cheese; and other cheeses and cheese products.

The new registration also requires companies to provide an assurance that they will permit FDA inspections. All facilities will be required to re-register every two years.

There is no fee to register or renew the registration of a food facility.

Sebastian Cianci, FDA trade press liaison, says FDA is still considering the impact that a recent delay in availability of registration renewal had on the industry. (See “FDA portal for online registration of food facilities is not yet available” in the Oct. 5, 2012, issue of Cheese Market News.)

“We encourage industry to renew reg-istrations in accordance with the statu-tory deadline of Dec. 31, 2012,” he says.

F o r m o r e i n f o r m a t i o n , v is i t www.fda.gov. CMN

U.S.-Panama Trade Promotion Agreement to enter into force Oct. 31WASHINGTON — This week U.S. Trade Representative Ron Kirk and Ricardo Quijano, minister of commerce and industry for Panama, exchanged letters in which they determined that the U.S.-Panama Trade Promotion Agreement will enter into force Oct. 31.

The U.S.-Panama agreement was signed into law Oct. 21, 2011, by Presi-dent Obama. Under the agreement, Panama will eliminate tariffs and other barriers to U.S. goods and services. This agreement combined with the trade agreements with Korea and Colombia, which entered into force earlier this year, will bring an additional $2.2 billion in U.S. agricultural exports.

“In 2011, the United States exported

more than $504 million of agricultural products to Panama, one of the fastest growing economies in Latin America,” says USDA Secretary Tom Vilsack. “Next week, nearly half of current U.S. farm exports to Panama will become duty free immediately and most of the remaining tariffs will be eliminated within 15 years.”

Once fully implemented, the agree-ment is expected to increase U.S. dairy exports by $25 million annually. Under this agreement, U.S. dairy manufactur-ers will gain immediate duty-free access for several products, such as cheese and ice cream, notes the International Dairy Foods Association (IDFA). The duty-free quota will increase over several years of

implementation, eventually leading to full, unrestricted duty-free access to the Panamanian market, which imported more than $33 million worth of U.S. dairy products last year. The U.S.-Panama agreement along with the Colombia and South Korea agreements will bring the U.S. dairy industry an anticipated increase of more than $400 million in annual dairy exports.

“IDFA welcomes this long antici-pated announcement,” says John Kelly, IDFA manager of international affairs. “With exports now so important to our industry, it’s vital to pursue free trade agreements and other policies that will allow for the continued growth of our industry in a global economy.” CMN

CWT assists with more dairy exportsARLINGTON, Va. — In recent weeks, Cooperatives Working Together (CWT) has accepted 16 requests for export as-sistance from Dairy Farmers of America, Darigold, Foremost Farms, Land O’Lakes United Dairymen of Arizona and Upstate Niagara Cooperative to sell 5.06 million pounds (2,295 metric tons) of Cheddar, Gouda and Monterey Jack cheese and 632,720 pounds (287 metric tons) of but-ter to customers in Asia, Central America, the Middle East, North Africa and the South Pacifi c. The product will be deliv-ered October 2012 through March 2013.

In 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack and Gouda cheese totaling 102 million pounds, butter totaling 58.7 million pounds and anhydrous milkfat totaling 127,868 pounds. The product has been sent to 34 countries on four continents. CMN

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20 CHEESE MARKET NEWS® — October 26, 2012

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NEWS/BUSINESSMinnesota farmer pleads guilty to selling unpasteurized milk, food without licenseBy Rena Archwamety

GAYLORD, Minn. — A dairy farmer from Gibbon, Minn., pleaded guilty last week in Sibley County District Court to selling unpasteurized milk and selling food without a license.

Michael Hartmann was charged fol-lowing a 2010 E. coli outbreak that was linked to raw milk and dairy products from his farm. (See “Minnesota court rules raw milk from dairy caused E. coli outbreak, issues destroy order” in the Dec. 31, 2010, issue of Cheese Market News.) Charges initially were fi led as well against his brother, wife and a drop site coordinator, but all of these charges were dropped.

As part of Hartmann’s plea deal, he will be on unsupervised probation for 6 months on the condition that he enters into full compliance with the Minnesota Department of Agriculture’s policies. If he is not in full compliance within 60 days, he will pay a fi ne of $565, says Assistant Sibley County Attorney Don Lannoye.

“The Department of Agriculture will be keeping in contact with him,” Lan-noye says. “If he ignores the Department of Agriculture, we’ll fi le a probation violation and bring him back to court, and he probably will go to jail.”

Each offense Hartmann pleaded to was a misdemeanor, which has a maximum jail penalty of 90 days, Lannoye adds. CMN

KCCO awards process cheese contractsKANSAS CITY, Mo. — This week, USDA’s Kansas City Commodity Offi ce awarded contracts for process cheese under a previously-issued invitation.

A maximum of 76.4 million pounds of process cheese will be purchased in 2013 for use in USDA’s domestic food distribution programs.

The purchase price for each deliv-ery period is the accepted differential price per pound indicated below plus the previous month’s average of the Chicago Mercantile Exchange price for barrel cheese trading as reported in USDA’s Dairy Market News. Up to 65 percent of the acquisition quantity was awarded to small business under Small Business Administration set-aside provisions.

Contracts were awarded to:• Bongards’ Creameries, a maxi-

mum of 24.2 million pounds of blended skim American cheese in 12/2-pound

loaves, $0.0729-$0.1479; a maximum of 594,000 pounds of kosher white process cheese in 6/5-pound loaves, sliced, $0.5200-$0.5200; a maximum of 22.7 million pounds of generic process cheese in 6/5-pound loaves, sliced, $0.0929-$0.1729; a maximum of 1.5 million pounds of blended yellow skim American cheese in 6/5-pound loaves, sliced, -$0.0339-$0.0000; a maximum of 3.5 million pounds of regular process cheese in 6/5-pound loaves, $0.1849-$0.2499; a maximum of 5.1 million pounds of process cheese in 6/5-pound loaves, $0.1849-$0.2649; and blended American skim cheese in 6/5-pound loaves, sliced, -$0.0339-$0.0561.

• Land O’Lakes Inc., a maximum of 944,188 pounds of process cheese in 6/5-pound loaves, $0.1727-$0.2442; and a maximum of 16.5 million pounds of blend-ed American skim cheese in 6/5-pound loaves, sliced, -$0.0595-$0.0345. CMN

New Nestlé research partnership seeks alternatives to saltNORTH BRUNSWICK, N.J. — Nestlé is partnering with Chromocell Corp. to identify compounds that could poten-tially supplant salt in a range of food products.

New Jersey-based Chromocell will use its proprietary “Chromovert” tech-nology to screen libraries of ingredients to detect those that provide similar tastes to salt in hope of fi nding an in-gredient that could reduce the amount of salt used in Nestlé products.

Nestlé is investing $15 million in the research as part of its worldwide com-mitment to continually improving the nutritional profi le of its products while ensuring they remain pleasurable to eat.

Nestlé’s partnership with Chro-mocell is expected to last at least three years and will build on work it has already undertaken to reduce salt in a variety of its food products globally, either by adapting existing products or introducing new ones. CMN

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NEWS/BUSINESSOctober 26, 2012 — CHEESE MARKET NEWS® 21

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IDFA recognizes dairy companies, trucking operations for superior worker safetyWASHINGTON — The International Dairy Foods Association (IDFA) has announced that 128 dairy company op-erations will receive IDFA Dairy Industry Safety Recognition Awards and Achieve-ment Certifi cates this year. This is the ninth year that IDFA has sponsored the program, which highlights outstanding

worker-safety records of dairy companies. The operations for each nominated

company were judged on specifi c data required by the U.S. Occupational Safety and Health Administration (OSHA) on the facility’s “Summary of Work-Related Injuries and Illnesses” report. This year’s award decisions were based on data from

OSHA reports for the 2011 calendar year.The award program includes categories

for both processing facilities and trucking operations in the dairy industry. In addi-tion to the 26 processing category award winners, IDFA awarded Achievement Certifi cates to 22 processing operations for having no injury cases that resulted in lost time away from work. IDFA also recognized 80 trucking operations for having zero cases with days away from work, restriction or job transfer in 2011.

“Many of these facilities have earned awards year after year after year, and IDFA congratulates all of the participants for their steadfast commitment to worker safety,” says Clay Detlefsen, IDFA vice president of regulatory affairs. “We know dairy companies and their employees are

proud to receive these awards, and we com-mend their continued dedication, hard work and superior level of achievement.”

Processing facilities were judged in four product categories: natural and processed cheese; dry, condensed and evaporated products; ice cream and frozen desserts; and fl uid milk. Within each product cate-gory, IDFA accepted nominations for small, medium and large facilities that achieved the best overall safety performance rates based on the OSHA data.

The 2012 winners will be featured in an upcoming issue of Dairy Foods magazine. IDFA will issue a call for nominations for the next Dairy Industry Safety Awards competition in early 2013.

For a complete list of winners visit www.idfa.org/news. CMN

Clear Lam Packaging invests $2 million in expansion of forming fi lms division at plantELK GROVE VILLAGE, Ill. — Clear Lam Packaging Inc. has completed a $2 million expansion of its forming fi lms division at its facility here.

The investment increases Clear Lam’s manufacturing capacity for a variety of rigid plastic rollstock used by thermo-forming companies and processors that operate vertical form, fi ll and seal equip-ment to produce a range of consumer goods packaging, the company says.

The main addition to the Illinois manu-facturing plant is a new sheet co-extruder that will add 15 million additional pounds of capacity. This equipment gives Clear Lam increased output of polyethylene terephthalate (PET), recycled polyethyl-ene terephthalate (rPET), polylactic acid (PLA)and biopolyethylene terephthalate

(BioPET). In addition, Clear Lam has added slitting capacity. Because Clear Lam produces many specialty blends of materials that improve low temperature impact strength, clarity and sealability, new blending equipment has also been installed, the company says.

“Clear Lam is committed to growing its forming fi lms business through our investment in new technologies and equip-ment representing the latest co-extrusion advancements,” says James Sanfi lippo, president and CEO of Clear Lam Packaging.

Applications for rigid rollstock include prepared foods, fresh produce, meats, cheeses, dairy items and non-food items. Clear Lam develops monolayer and multi-layer fi lms and blends used to produce con-temporary rigid packaging solutions. CMN

Bosch fi nalizes acquisition of Ampack AmmannWAIBLINGEN, Germany — Bosch Packaging Technology recently fi nalized its acquisition of Ampack Ammann, a German fi lling and packaging machine manufacturer, following approval grant-ed by antitrust authorities. The contract for the purchase was signed in July.

Ampack Ammann develops, manu-factures and sells fi lling and packaging machines for paste-like and liquid food,

including dairy products, baby food, drinks and hospital food. The company employs about 250 associates and generates average annual sales of approximately $45 million. The purchase price has not been disclosed.

“In acquiring Ampack Ammann, we are pushing strongly ahead with our strategy of diversifi cation,” says Fried-bert Klefenz, president of the Bosch Packaging Technology division. CMN

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Page 22: Industry discusses key dairy state election races, farm bill

22 CHEESE MARKET NEWS® — October 26, 2012

will continue to serve on the board of directors.

Other new offi cers for 2012-2013 are: Bill Klump, senior vice president of marketing for Butterball LLC, Garner, N.C. — executive vice presi-dent — Dave Leonhardi, director of education & events for Wisconsin Milk Marketing Board Inc., Madison, Wis. — vice president — John Chees-man, vice president of sales-corporate accounts, Maplehurst Bakeries LLC, Brownsburg, Ind. — treasurer. CMN

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Comings and goings … comings and goings

Intelligrated, Cincinnati, has ap-pointed Paul Hensley to serve as se-nior sales engineer for the company’s Cincinnati-based central regional op-erations. Hensley, who has more than 20 years of material handling sales experience, is responsible for build-ing and supporting client relations in Tennessee, Arkansas, Mississippi and Kentucky for the company’s manufac-turing systems division. Hensley pre-viously worked as a contract manager for Jackson-Madison County General Hospital and as director of global op-erations for NCR.

Johanson Transportation Service (JTS), Fresno, Calif., has hired Jeff Mosqueda and Melanie Velasquez as sales and logistics coordinators in the company’s perishable depart-ment. Prior to joining JTS, Mosqueda was assistant banking manager at Wells Fargo and has his securities li-cense. Velasquez previously worked in LTL shipping for a Madera-based food processor and has three years of expe-rience in the transportation industry.

Red Barn Family Farms, Appleton, Wis., co-founder Paula Homan was honored in the woman-owned business category of the Wisconsin Economic Development’s (WEDC) Rising Star Awards. The awards recognize minori-ty-owned businesses that have been in business for less than fi ve years. Red Barn Family Farms, a wholesale suppli-er of premium milk and award-winning cheese, was founded in 2008 by Homan and her husband, Dr. Terry Homan.

American Butter Institute (ABI) recently elected David Riemersa, Butterball Farms Inc., president at its annual board meeting held in Las Vegas. Irv Holmes, Challenge Dairy Products Inc., was elected fi rst vice president; and Dean Van Tuinen, Darigold Inc., was elected second vice president. Each offi cer will serve a two-year term. The ABI board also elected Randy Robinson, High Des-ert Milk; Josh White, Hoogwegt U.S.; and William Schreiber of O-AT-KA Milk Products Cooperative Inc. as new board representatives. CMN

PEOPLE

MADISON, Wis. — The International Dairy-Deli-Bakery Association (IDBBA) elected 2012-2013 offi cers at its recent annual business meeting in Chicago.

Voni Woods, senior director of deli for Giant Eagle Inc., Harmony, Pa., has been elected the association’s 49th president. She has served on the board of directors since 2006 and has served on several committees. She replaces former president Steve Beekhuizen, senior vice president of sales for Dawn Food Products Inc., Littleton, Colo., who

IDDBA offi cers elected for 2012-2013 terms

WASHINGTON — U.S. Agriculture Secre-tary Tom Vilsack has appointed 12 mem-bers to the National Dairy Promotion and Research Board. All appointees’ terms will begin Nov. 1 and end Oct. 31, 2015.

“These appointees represent a cross section of the dairy industry and I am confi dent that the industry will be well served by them,” Vilsack says.

Newly appointed members are: Law-rence Hancock, Texas; Lanette Harsdorf, Wisconsin; Edward Jasurda, Wisconsin; David Veenhouwer, Idaho; and Marilyn

Vilsack appoints 12 members to National Dairy Promotion and Research Board

Hershey, Pennsylvania.Reappointed to serve second terms

are: George Marsh, Oregon; Ray Prock Jr., California; Arlene Vander Eyk, Cali-fornia; Paul Fritsche, Minnesota; Mark Erdman, Illinois; Susan Troyer, Indiana; and Ronald McCormick, New York.

The secretary selected the appoin-tees from nominations submitted by eligible producer organizations, gen-eral farm organizations, and qualifi ed dairy products promotion, research or nutrition education programs. CMN

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Page 23: Industry discusses key dairy state election races, farm bill

October 26, 2012 — CHEESE MARKET NEWS® 23

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KANSAS CITY, Mo. — A commit-ment to quality and leadership has earned recognition for three Dairy Farmers of America Inc. (DFA) employees.

The PepsiCo North America Quality Team recently honored Daryl Elles and Jo Farek, who work at DFA’s Schulenburg, Texas, manufacturing plant, and Brian Izdepski, who works in DFA’s quality assurance and com-pliance department, with the 2012 Contract Manufacturing Quality Star.

MADISON, Wis. — Karl Klessig, Cleveland, Wis., recently received an Honorary Recognition Award from the University of Wisconsin-Madison Col-lege of Agricultural and Life Sciences (CALS).

Klessig and his wife, Liz, co-own Saxon Homestead Farm and Saxon Creamery, a farmstead cheese factory that produces award-winning artisan cheese. The Klessigs strive to produce high-quality milk in a system that pro-vides for exceptional animal comfort, effi cient and profi table production, environmental stewardship, and fam-ily and employee well-being. They also support university research and edu-cation programs that focus on these objectives.

Klessig currently serves on the Sheboygan Area School District’s foodservice advisory committee and on the board of directors for the Mani-towoc County Agricultural Education Center project. The Klessig family

University of Wisconsin’s CALS bestows Honorary Recognition Award to Klessig

hosts an annual barn dance to raise funds for organizations that conserve farmland and natural resources—in-cluding the CALS-based Wisconsin School for Beginning Dairy and Live-stock Farmers.

Other recipients of an Honorary Recognition Award are Robert and Carol Black, Columbus, Wis., and Roger Cliff, Verona, Wis. The Blacks raise sheep and work to promote the industry as a whole. Cliff has served as chief administrative offi cer of Wis-consin Farm Bureau Federation since 2004 and has helped shape federal and state agricultural policy. CMN

PEOPLE

DFA employees recognized by PepsiCo “Our customer relationships are

based on shared values for quality and accountability,” says Ed Tilley, chief operating offi cer of DFA’s contract manufacturing division. “It is truly an honor to see not one but three of our hard-working employees recognized for embodying these shared values.”

DFA has undertaken a Safe Quality Food (SQF) initiative in its manufacturing plants throughout the country. All DFA plants are work-ing toward SQF certifi cation. CMN

Cheese stocks drop below 1 billion pounds in Sept.WASHINGTON — Total natural cheese in U.S. cold storage at the end of Septem-ber 2012 dropped below 1 billion pounds to 994.3 million pounds, a decline of 1 percent from August 2012’s 1.00 bil-lion pounds and down 5 percent from September 2011’s 1.05 billion pounds, according to data recently released by USDA’s National Agricultural Statistics Service (NASS).

American cheese in cold storage as of Sept. 30, 2012, totaled 608.4 million pounds, down 1 percent from August 2012’s 614.1 million pounds and down 5 percent from September 2011’s 639.2 million pounds.

Swiss cheese in cold storage as of Sept. 30, 2012, was 28.9 million pounds, up less than 1 percent from August 2012’s 28.8 million pounds but 8 percent lower than the 31.3 million pounds of Swiss cheese in cold storage Sept. 30, 2011.

Other natural cheese in cold storage totaled 357.0 million pounds as of Sept. 30, 2012, down 1 percent from August 2012’s 359.5 million pounds and down 5 percent from September 2011’s 375.5 million pounds.

NASS reports U.S. butter in cold storage totaled 195.4 million pounds as of Sept. 30, 2012, down 3 percent from the previous month’s 201.1 million pounds but 29 percent higher than the 151.0 million pounds in cold storage at the end of September 2011. CMN

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24 CHEESE MARKET NEWS® — October 26, 2012

be held in the WDC pilot cheese plant making cheese by hand.

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• May 14-15: Quality Control Workshop, a course covering un-derstanding and implementation of Hazard Analysis and Critical Control Points (HACCP) programs. The work-shop will provide training to ensure a

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basic understanding of current good manufacturing practices, sanitation standard operating procedures, product identifi cation, traceability and recall, preventative maintenance and education training of employees. The workshop will include a classroom lecture, hands-on demonstrations and specifi c topic breakout sessions.

• May 16-17: HACCP Workshop, a systematic preventative approach to food safety that addresses physical, chemical and biological hazards as a means of prevention, rather than fi nished product inspection will be provided in this two-day workshop. The workshop will include online and

LOGAN, Utah — Utah State Univer-sity’s Western Dairy Center (WDC) has released a schedule of symposia, short courses and workshops for 2013.

The following is a list of events planned by WDC in 2013:

• Feb. 7: Artisan Cheese Sympo-sium, a one-day symposium covering artisan cheesemaking with informa-tion on animal nutrition, grazing, busi-ness plans and marketing strategies.

• Feb. 8-10: Basic Cheesemaking Short Course, a course for beginner or fi rst-time cheesemakers that will include an introduction to milk, cheese and dairy cultures, and the cheesemaking process. One day will

Western Dairy Center announces full slate of 2013 symposiums, workshops, short courseshands-on training.

• May 21-22: Advanced Sanita-tion Workshop, an in-depth advanced training program for individuals re-sponsible for sanitation and quality control practices in food and dairy plants. The objective is to provide attendees with advanced skills re-garding the properties of cleaning and sanitation.

• May 23-25: Employee Based Food Safety Workshop, a workshop designed to provide attendees with insight into how employees are key to success of any food safety and qual-ity program. It applies food science, behavioral science and organization culture to focus on both the process and the person performing the pro-cess.

• May 30-31: Statistical Process Control Workshop, a course offered on Statistical Process Control (SPC) that is designed with both students and industry professionals in mind. Participants will learn about the his-tory of SPC, variation, control charts, run charts and a variety of statistical tools.

• June 5: Food Safety Modern-ization Act Workshop, a one-day workshop that will identify food plant operational requirements of the 2011 Food Safety Modernization Act (FSMA) and the accompanying regulations.

• June 6-7: Safe Quality Foods (SQF) Work Shop, a two-day work-shop covering new information on the seventh edition of the SQF Codex, giving participants the operation knowledge to either build a new SQF-written program or successfully con-vert an existing SQF written program to conform to the new seventh edition. It’s recommended that participants have an understanding of HACCP and its application in a food processing or distribution setting.

For more information, or to regis-ter, visit www.usu.edu/westcent. CMN

IDDBA’s Dairy-Deli-Bake 2013 to be held June 2-4 in Orlando, Fla.MADISON, Wis. — The International Dairy-Deli-Bakery Association’s (ID-DBA) 49th annual seminar and expo, Dairy-Deli-Bake 2013, will be held in Orlando, Fla., at the Orange County Convention Center, June 2-4.

The theme for the full-service seminar and expo show is Foodie All-Stars, and it is expected to draw retailer buyers and merchandisers, new product exhibitions and nation-ally renown speakers.

For more information call 608-310-5000 or visit www.iddba.org. CMN

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October 26, 2012 — CHEESE MARKET NEWS® 25

For more information please visit www.niroinc.com

NEWS/BUSINESS

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Los Angeles International 2012 Dairy Competition gold medal winners announcedLOS ANGELES — Winners have been announced for the Los Angeles Interna-tional 2012 Dairy Competition recently held here in conjunction with the Los Angeles County Fair.

Gold medal winners, samples which earned more than 98 percent in cheese categories, are as follows:

Blue Veined: Caves of Faribault, Faribault, Minn.

Camembert & Other Surface (Mold) Ripened Cheeses: Vermont Farmstead Cheese Co., South Wood-stock, Vt.

Cheddar, Medium (3-6 months): Joseph Gallo Farms, Atwater, Calif.

Cheddar, Mild (0-3 months): Ralphs Grocery Co., Compton, Calif.; Joseph Gallo Farms, Atwater, Calif.; Jerome Cheese Co., Jerome, Idaho.

Cheddar, Sharp (6 months to 1 year): Pineland Farm Creamery, New Gloucester, Maine.

Colby: Ralphs Grocery Co., Compton, Calif., Colby Jack.

Cottage Cheese: Ralphs Grocery Co. (2), Compton, Calif., Nonfat small curd cottage cheese, Pineapple; Morningstar Foods LLC, Dallas.

Edam: Vermont Farmstead Cheese Co., South Woodstock, Calif.

Feta: Redwood Hill Farm, Sebas-topol, Calif.

Flavored Cheeses with Sweet or ‘Dessert’ Condiments: Vermont Farm-stead Cheese Co., South Woodstock, Vt., Wild Blueberry Windsordale.

Flavored Hard Cheeses: Rumiano Cheese Co., Crescent City, Calif., Mild Black Pepper.

Flavored Pasteurized Process Cheeses: Thiel Cheese & Ingredients, LLC, Hilbert, Wis., White Cheddar Garlic.

Flavored Semi-Soft Cheeses: Clo-ver-Strovetta, Roodepoort, South Africa; Joseph Gallo Farms (2), Atwater, Calif.

Flavored Semi-Soft Goat’s Milk Cheeses: Sierra Nevada Cheese Co., Willows, Calif., Smoked.

Flavored Soft Goat’s Milk Cheeses: Meyenberg Goat Milk Products, Turlock, Calif., Garlic & Chive Creme de Chevre Cream Cheese.

Flavored Spreadable Cheeses: Rising Sun Farms (6), Phoenix, Ore., Sweet; Savory & Sweet; Savory; Hint of Sweet; Savory; Sweet Tart Berry; Smith’s Country Cheese Inc., Winchen-don, Mass., With a Mix of Spices.

Gouda: Joseph Gallo Farms, Atwa-ter, Calif.

Gouda, Flavored: Smith’s Country Cheese Inc. (2), Winchendon, Mass., With Salsa Seasoning, With Chipotle Peppers; Arla Foods Production LLC (3), Basking Ridge, N.J., Chipotle Pep-per, Smoked Black Pepper, Pesto Flavor.

Hard Goat’s Milk Cheeses: Meyen-berg Goat Milk Products, Turlock, Calif.; Coach Farm, Pine Plains, N.Y.

Havarti: Arla Foods Production LLC, Basking Ridge, N.J.; Vermont Farmstead Cheese Co., South Woodstock, Vt.; Clover-Strovetta, Roodepoort, South

Africa.Havarti, Flavored: Arla Foods Pro-

duction LLC (2), Basking Ridge, N.J., Jalapeno, Dill.

Marbled Curd Cheese: Joseph Gallo Farms, Atwater, Calif., Marbled Cheddar.

Monterey Jack: Ralphs Grocery Co., Compton, Calif.; Sierra Nevada Cheese Co., Willows, Calif.

Mozzarella, Part Skim: Great Lakes Cheese, Hiram, Ohio; Cacique Inc., City of Industry, Calif.; Joseph Gallo Farms, Atwater, Calif..

Open Class Hard Cheeses: Cacique Inc, City of Industry, Calif.; Rumiano Cheese Co., Crescent City, Calif.; Ver-mont Farmstead Cheese Co., South

Woodstock, Vt.; Vella Cheese Co., So-noma, Calif.; Special Select Monterrey Jack.

Open Class Semi-Soft Cheeses: Point Reyes Farmstead Cheese Co., Point Reyes Station, Calif.; Cowgirl Creamery, Petaluma, Calif., Bloomy Rind with Dried Thai Basile, Calen-dula; Vella Cheese Co., Sonoma, Calif., Toma; Joseph Gallo Farms, Atwater, Calif., Manchego.

Open Class Soft Cheeses: Morning-star Foods, Dallas.

Pasteurized Process Cheeses: Thiel Cheese & Ingredients LLC, Hilbert, Wis., White American.

Pepper Flavored American Style Cheeses: Vella Cheese Co., High Mois-

ture Jack with Jalapeno; Vermont Farmstead Cheese Co., South Wood-stock, Vt., Hot Pepper; Pineland Farm Creamery, New Gloucester, Maine, Pep-per Jack; Joseph Gallo Farms, Atwater, Calif., Pepper Jack; Ralphs Grocery Co., Compton, Calif., Hot Pepper Jack; Vermont Farmstead Cheese Co., South Woodstock, Vt.; Hilmar, Hilmar, Calif., Pepper Jack; Sierra Nevada Cheese Co., Willows, Calif., Habanero; Joseph Gallo Farms, Atwater, Calif.

Pepper Flavored Cheeses: Rumiano Cheese Co., Crescent City, Calif., Ja-lapeno Pepper; Cacique Inc., City of Industry, Calif.; Joseph Gallo Farms, Atwood, Calif.

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

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Page 26: Industry discusses key dairy state election races, farm bill

26 CHEESE MARKET NEWS® — October 26, 2012

NEWS/BUSINESS

50 Years Strong: Ivarson Inc. celebrates milestone and looks ahead to future growthBy Alyssa Sowerwine

MILWAUKEE — When entering Ivarson Inc.’s corporate offices and plant just outside downtown Milwaukee, it’s quickly obvious Ivarson Inc. is a family-owned and operated business. In the modest reception area, a portrait of company founder Len E. “Lennie” Ivarson hangs on the wall among vari-ous colorful ribbons from the company’s participation in countless cheese auc-tions over the years.

The welcome area of the 90,000-square-foot plant refl ects the very core of how Ivarson Inc. conducts its business — as a company that makes its customers feel taken care of and at home.• The beginning; service offerings

Founded by Lennie Ivarson in 1963, Ivarson Inc. is a full-service solutions provider for production of cheese, but-ter, spreads, margarine and shortening.

Originally Len E. Ivarson Inc. (in 2000 the company name was offi cially changed to Ivarson Inc.), the company has its roots in the cheese industry. From its earliest days in Wisconsin, cheese was the com-pany’s main business, says Lennie Ivarson.

from Germany. Working mainly with cheese companies in Wisconsin, Ivarson Inc. installed multiple cheese packaging lines for cheeses such as Camembert, Brie, Gouda and Cheddar cuts.

In 1964, Ivarson Inc. partnered with Benhil (now OYSTAR Benhil GmbH), supplying the North and Central Ameri-can markets with butter and margarine wrapping machines.

“With Benhil’s ability to handle soft butter direct from the churn, we soon realized the key to a fully automatic plant was a butter pumping system,” Lennie Ivarson says.

The fi rst Ivarson butter pumping system was installed in 1965. Lennie Ivarson notes that this changed the industry as a whole as manufacturers realized it was possible to form a packet then fi ll and wrap the butter stick rather than form the butter stick which later was wrapped.

Many butter manufacturers in the United States and Canada soon saw the great labor savings as well as the sanitation benefi ts of this process, he adds. Within time, the Ivarson butter pumping system became an industry standard and was used by almost all the butter plants where butter churning and packaging are involved.

Working closely with Benhil, Ivarson Inc. also developed a fi lling and packag-ing machine specifi c to the U.S. market. This type of machine was specially designed to fi ll and carton the standard 1/4-pound butter stick, with 4 sticks to a carton, as seen in stores today.

In 1965, the fi rst Benhil model 8360 fi lling machine combined with the Benhil 8555 cartoning machine was installed at Union Center in Wisconsin.

“Forty-plus years later this model is still in production at many plants across the country, producing the majority of butter consumed in the United States today,” Lennie Ivarson says.

Ivarson Inc. also has developed equipment for the processing and packaging of spreads, margarine and shortening. The equipment is designed to be robust, yet simple, for producing high-quality products with a minimum of complexity.

Lennie Ivarson notes that the company’s product knowledge and equipment designs have brought it into several related industries. Ivarson has processing equipment for bakery ap-plications as well.

With the Benhil soft butter wrapping machine, Ivarson Inc. also decided to branch out and develop its own line of equipment. The most successful design is the Ivarson soft case packer intro-duced in 1982 which could handle the soft product packages from the Benhil equipment. The addition of the case packers allowed the company to offer its customers semi- or fully-automatic production lines. In addition to the case packer, Ivarson Inc. also has designed and manufactured its own bulk packer, cartoner and continuous carton closing

systems.“Today we have installed cheese

processing and packaging lines includ-ing Ivarson’s own 640 Block Cutter throughout the United States and Canada,” Lennie Ivarson adds.

Ivarson also offers Kadova cheese moulds and Paramelt cheese wax and coatings. In addition, the company has its own line of cutting equipment, devel-oped specifi cally for the North American market, and together with Alpma, can offer cutting lines with throughput up to 8,000 pounds per hour.

Keeping pace with technology and consumer demand for lowfat prod-ucts, Ivarson Inc. introduced Alpma’s CreamoProt in 2008. The technology converts liquid whey into a micropar-ticulated milk protein. With this process, producers can replace the more expensive milk portion of their products with whey as well as produce lowfat foods with the taste and texture of high-fat products.

The company offers state-of-the-art, new equipment as well as remanufac-tured equipment to fi t its customers’ budgets, Lennie Ivarson adds.

“As good as new and often better” is the slogan he applies to this remanu-factured equipment.

“It’s a shame we even have to label it as remanufactured because it’s like a brand new machine,” says Paul A. Kochan, fi nance and administrative manager for Ivarson Inc. “Remanufac-tured equipment offers our customers a cost-effective solution when compared to looking at new equipment.”

Along with remanufacturing old equipment, Lennie Ivarson is always quick to buy up older equipment that other companies have discarded before making it “like new” again. His daughter, Linda Ivarson, jokes about the “equip-ment graveyard” at the company’s Milwaukee plant.• A family feel

Ivarson Inc.’s “family” atmosphere includes Lennie’s son Glenn who is company president. His daughter Lin-da, who once was known as the “wax

lady,” is now involved only in special company projects,. However, many other employees are instrumental in the company’s strong foundation and commitment to the industry.

Kochan, who has been with the company 18 years, touts Ivarson Inc.’s lack of employee turnover.

“We all love what we do. The personal relationships you develop with the cus-tomers is fantastic, and for me, it’s all over the phone,” he says. “When you look at most companies today and the turnaround they have with employees coming and going, this is something we do not have. This helps develop continu-ity within the company, which allows us to serve our customers better.”

Charles Edward (Chuck) Ellingson Jr., vice president of cheese and but-ter technologies, is another longtime employee of Ivarson Inc. who has been with the company nearly 41 years. His father Charles Edward (Ed) Ellingson Sr. was vice president of the company from the late 1960s until he retired in the mid 1990s, and was instrumental to the company’s success in the butter industry.

Chuck Ellingson Jr. says he started working for Ivarson Inc. part time when he was in college and ended up joining the company full time later on.

“I’ve worn many different hats throughout my time here and now work in a sales position,” he says. In his current role, he is responsible for product lines related to cheesemaking and cheese packaging.

“It’s been great to work for a com-pany that over the years has had such a role in the innovation of cheese and dairy technology in the industry,” he says.

He adds that the Ivarson Inc. family atmosphere creates an environment of collaboration and growth at the company.

“There’s never a dull moment, and each year it seems there’s always some-thing new and exciting that we’re doing to innovate and help further the dairy

Turn to IVARSON, page 27 D

‘AS GOOD AS NEW AND OFTEN BETTER’ — Lennie Ivarson stands in his plant’s processing department where this piece of equipment is ready to be sandblasted and painted before it goes into assembly.

“Today we have installed cheese

processing and packaging lines ... throughout the United States

and Canada.”

Lennie IvarsonIVARSON INC.

When he fi rst came to Wisconsin in the late 1950s, he immediately fell in love with the land and surrounding lakes.

“It reminded me of Kattegatt back in Sweden and the rolling hills and forest around my home area of Kinna, Sweden,” he says.

He also jokes that his Swedish accent helped to set him apart in the industry from the start. In truth, the accent is hard to miss, but it’s his care and dedica-tion to his business and customers that has set Ivarson Inc. apart over the years.

Ivarson Inc. supplies specifi c equip-ment for various cheese production and packaging. The company is a North American partner for Alpma, a leader in cheese technology. In fact, Lennie Ivarson started as a manufacturer’s representative for Alpma as he founded Len E. Ivarson Inc.

Over the past 50 years, the company has established strong relationships with several leading European manufac-turers that share Ivarson’s commitment to quality and the customer. In 1963, Ivarson Inc. introduced Alpma cheese processing and packaging equipment

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

Page 27: Industry discusses key dairy state election races, farm bill

October 26, 2012 — CHEESE MARKET NEWS® 27

NEWS/BUSINESS

IVARSONContinued from page 26

For more information please visit www.ivarsoninc.com

industry,” he says.Glenn Ivarson notes that “anyone

working in a family business surely knows the challenge that imparts.”

“I was fortunate that for the fi rst 20 years I had very good managers between me and my father to train me,” he says.

He adds that he started at the very bottom and gradually worked his way up in the company.

“Glenn is even better than I am in thinking of effi ciencies for a plant,” Lennie Ivarson says of his son.

Glenn Ivarson says that once he got out on the road and began traveling with his father, he was able to take what he learned and apply it to the projects he was orchestrating.

“He taught me how we add value to the customer’s process and help them improve profi tability,” he says. “As I grew into the role of president, I made sure I had good managers to support me that would continue to teach employees what is important to our customers. We promote from within to help people grow both individually and as a part of our family.”

Glenn Ivarson notes that the company knows that a project is only successful if the equipment performs and can continue for many years after delivery.

With this in mind, he works closely with the engineering group to be sure they understand the function of the equipment and how it will be main-tained by their customers.

“I require the engineers to work on the customer’s site for service and installation so they know what main-tenance people go through on a daily basis,” Glenn Ivarson states. “With this understanding, they build the machin-ery to be easy to service and maintain, which saves money for our customers down the road.”• Commitment to the customer

The family values of Ivarson Inc. also expand to how it deals with its custom-ers. In addition to supplying equipment, Ivarson Inc. also has an after-sales service organization with service engi-neers who provide maintenance service and spare parts to maintain customers’ equipment.

“My dad always said to me, you can’t stop the cows from milking; you’ve got to keep the machines running,” Linda Ivarson says.

Glenn Ivarson notes that his 10 years spent in customer service were the most important training he had because he talked with customers every day to help solve their problems.

Linda Ivarson also says the company can look beyond initial services at a plant to see what else can be done.

“We may have gone to a plant for an Alpma wrapping machine, but we’d look around to see what else we could do. We’d ask our customers, ‘What else are you doing here that we can help with?’” she says.

The company touts its ability to service both start-up plants and mul-tinational mega plants, with product quality and effi ciency as top priorities.

With each company, large and small, customer service is paramount.

“Everything with customer service goes back to Lennie,” Kochan says. “Literally from the fi rst day to when I was promoted to customer service manager, I would come in in the morn-ing and there would always be some article or some memo on commitment to the customer from Lennie, and I still have them.”

Kochan notes that customers have come to expect that if a machine is down, someone will be there the next day.

Turn to CUSTOMER CARE, page 28 DATTENTION TO DETAIL — Linda Ivarson, left, talks with Mike Haluzak, a machinist with Ivarson Inc. for 28 years, as he works on a manual mill and lathe. Specialty work and attention to detail sets Ivarson Inc. apart in the industry.

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

http://www.ivarsoninc.com/
Page 28: Industry discusses key dairy state election races, farm bill

CUSTOMER CAREContinued from page 27

28 CHEESE MARKET NEWS® — October 26, 2012

NEWS/BUSINESS

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LONGTIME LOYALTY — Aaron Collins, left, sales associate with Ivarson Inc. for 13 months, meets with longtime Ivarson employees Chuck Ellingson Jr., center, vice president of cheese and butter technologies, and Paul Kochan, fi nance and administrative manager. “When you look at most companies today and the turnaround they have ... this is something we do not have,” Kochan says. “This helps develop continuity within the company, which allows us to serve our customers better.”

Kochan says that his cell phone number is the 24-hour hot line that customers call.

“What sets us apart is the care that we give to the customers and that Lennie instills in us,” he says. “Even when jobs go bad, the bottom line is that the focus on the customer is still there.”

Lennie Ivarson sums up the com-pany’s customer service philosophy in one simple phrase: Service is our most important product.

Glenn Ivarson notes that customer service can be challenging, “but if you do your best every day and try your hardest, you’ll sleep well at night.”

“Customers call me at any hour day or night, and I am here for them,” he says. “This kind of customer service will never stop as long as I can answer a phone.”

• Moving forwardIn celebrating its 50 years in busi-

ness, Ivarson Inc. has launched a new logo design demonstrating the strength of Ivarson Inc.’s knowledge, commit-ment to the customer and continuity.

Kochan says the company wanted to keep the new logo simple in order to maintain the focus on the Ivarson brand, but at the same time demonstrate the strength the company has gained from its experience.

Growing the product line and diver-sifying will be priorities moving forward, Glenn Ivarson says. Under his leader-ship, the company looks forward to the challenges and demands associated with being an industry leader.

The company recently launched a scrape surface heat exchange line of equipment known as the Ivarson Convec-tor for making butter, spreads and dairy blends. Glenn Ivarson notes that the convector is part of the company’s move into the international process market.

In June, Ivarson Inc. also purchased a 60,000-square-foot plant just north of Milwaukee in Farmington, Wis., to continue to expand the business beyond its current 90,000-square-foot plant.

“We’re out of room here for expan-sion, so we wanted to fi nd a place to continue to expand and develop,” Glenn Ivarson says. He notes that the current plant is really geared toward machine assembly, while the newer space will be geared toward bigger machines like heat exchangers and cheese equipment.

Glenn Ivarson notes that he is for-tunate to work in “the best industry in the world.”

“The dairy business is full of honest, hardworking people that do what they do because of their love for the products and the process,” he says, noting that Ivarson Inc. strives to make its machines better just like a cheesemaker or butter maker strives to make the next vat or churning better.

“I go to work most days with a smile on my face because I love what we do,” Glenn Ivarson says. “The days that are challenging, I may not have a smile in the beginning, but once the issues are re-solved, the smile comes right back.” CMN

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

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Page 29: Industry discusses key dairy state election races, farm bill

October 26, 2012 — CHEESE MARKET NEWS® 29

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CHICAGO — Bosch Packaging Tech-nology has released numerous new products with dairy applications.

The Pack 301 ID inverted long dwell fl ow wrapper is the company’s newest addition to its Pack series of horizontal form fi ll seal (HFFS) machines. The Pack 301 ID gently transports products by carrying them on top of the fi lm through the cutting head, minimizing jams and protecting package appear-ance, the company says.

The machine’s long dwell sealing system provides longer sealing times than traditional rotary cutting heads, which results in higher seal integrity and air-tight packages, the company adds.

Bosh Packaging also has released the Product Stacker Collator (PSC), the latest addition to its Pack Feeder 4 product line. The machine integrates Bosch’s Pack series of horizontal fl ow wrappers to enable multi-count packag-ing of either raw or wrapped products. Its design utilizes a variety of carrier heights to lift the products and place them onto a static shelf to create multi packs up to fi ve layers high before the stacks are conveyed to a horizontal fl ow

Bosch Packaging Technology unveils new HFFS machine, PSC wrapper at Pack Expo

wrapper for overwrapping.The company also has introduced its

bar packaging line to North American markets with the SurePOUCH clean-fi ll machine (SPC), and the compact inspection unit KKX 3900. The bar packaging line includes the distribution station Sigpack DCI, the horizontal fl ow wrapper Sigpack HRM, and the new toploader Sigpack TTM.

The new SurePOUCH roll-fed ver-tical form fi ll seal (VFFS) machine produces stand-up fl exible pack styles with spouts that give manufacturers multiple packaging options for liquid and viscous products. The packs are fi lled on the SPC.

Bosch Packaging says its Sure-POUCH packs are fi tted with reclosable spouts that are ultrasonically welded to the exterior of the pouch and can be positioned in various locations. Com-pared to rigid alternatives, SurePOUCH packages are created with thinner gauge and lighter polymer materials, resulting in cost, resource and energy savings throughout manufacturing and transportation.

For more information visit www.boschpackaging.com. CMN

NEW PRODUCTS FOR DAIRY MANUFACTURERS

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

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Page 30: Industry discusses key dairy state election races, farm bill

30 CHEESE MARKET NEWS® — October 26, 2012

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SOUTH SAN FRANCISCO, Calif. — AvidBiotics Corp. and DuPont Nutrition & Health are collaborating to improve food safety through an agreement that gives DuPont exclusive rights to AvidBi-otics’ antibacterial protein technology in the realm of food and food protection.

“The products coming out of this collaboration should be useful to the dairy and cheese industry. For example, Listeria is one of the pathogens that we are targeting in the collaboration. We expect that new anti-Listeria products will provide a very effective solution to reduce the risk of Listeria contami-nation in their end products,” says a DuPont representative.

AvidBiotics, DuPont collaborate on protein technology that could reduce Listeria risk

The deal, inked Sept. 17, also will yield a targeted protein to kill a strain of E. coli in meat processing plants.

“This collaboration provides us with the needed resources to advance our efforts against the most important foodborne pathogens, the seriousness of which as a health threat is only com-pounded by the increasing resistance of many of these organisms to antibiotics. Along with DuPont, we will continue to advance our most immediate product opportunity in food protection against E. coli 0157:H7,” says said James Knighton, president of AvidBiotics.

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ST. PAUL, Minn. — The new Delkor Capstone S2-1500 Carton Closer and Delkor LIF-650 Case Packer will both be featured in booth No. S-2347 at Pack Expo International Oct. 28-31.

The Delkor Capstone S2-1500 Carton Closer is servo driven and equipped with Intelligent Positioning technology, which electronically analyzes the position of individual carton fl aps and can make

Delkor to feature new Capstone S2-1500 Carton Closer, LIF-650 Case Packer at Pack Expoprecise adjustments at speeds of up to 150 cartons per minute, the company says.

The new carton closer — which is 12 feet long by 10 feet wide by 7 feet tall — has a stainless steel design and color touch-screen operator panel with optional multi-lingual screen prompts.

The carton closer also offer tool-less change-overs in less than fi ve minutes and can run the full range of paper-

board and corrugated materials, the company adds.

The Delkor LIF-650 Case Packer with Integrated Closer can load multiple case pack patterns in a single packaging line. It is constructed of stainless steel and designed to achieve precise placement of packages into a broad range of sec-ondary packaging types. This machinery readily packs single or multiple fl avors into a variety of retail-ready distribu-tion style packages, the company says.

The LIF-650 has an auto-clear infeed

system that ensures continuous ma-chine running. It features a dual-axis, high-speed, servo-laner that prevents product pile up, and a unique stabilizing device that prevents products from tip-ping over and causing incomplete loads. Once products are loaded into cases, they move to the integrated closer, which can close up to 60 packages per minute.

To learn more, visit www.del-korsystems.com, or contact Rocky Buencamino at [email protected] or call 763-746-1886. CMN

TAMPA, Fla. — Eagle Product Inspec-tion has released the Eagle Pack 400 HC, an energy-effi cient X-ray inspection system for dairy and other industries.

The company says the Eagle Pack 400 HC is an energy-effi cient X-ray inspection system with robust construction that fea-tures thicker stainless steel plates that are welded together rather than bolted to make the design more sanitary by eliminating food debris collection points.

Eagle Pack 400 HC is able to with-stand the impact of repeated exposure to chemical cleaners and pressurized

Eagle Product Inspection releases 400 HC energy-effi cient X-ray inspection system

water. The interlocked hinged louvers can be lifted to allow access to the conveyor, eliminating the need of dis-mantling traditional heavy louvers to clean inside the machine.

The Eagle Pack 400 HC also is de-signed with an energy-effi cient, water-cooled heat exchanger that eliminates the need for a separate air conditioning unit to cool the system, which results in a minimal footprint and saves space in the production line.

For more information visit www.eaglepi.com. CMN

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Page 31: Industry discusses key dairy state election races, farm bill

October 26, 2012 — CHEESE MARKET NEWS® 31

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Tetra Pak offers cost-effective screw cap cartonLAUSANNE, Switzerland — Tetra Pak says its most cost effective screw cap container, the Tetra Brik Aseptic 1000 Mid LightCap 24, delivers increased consumer functionality and optimizes pouring performance.

The LightCap 24 has a two-step opening with a barrier protection for value-added milk that ensures the product is safe, secure and kept fresh for longer, the company says. In addi-tion, the new carton package features a pull ring, which provides security as it demonstrates whether the carton has been previously opened.

“We are very pleased with the better pallet utilization achieved with Tetra Brik Aseptic 1000 Mid LightCap 24. It enables more effi cient distribution as the package takes up less space for transportation. This has allowed us to achieve six layers on a pallet rather than fi ve achieved with our previous package. We are now able to use vertical space more effi ciently in our warehouse while also reduc-ing waste due to less damage,” says Fernando Koch, UHT plant manager at SOPROLE a dairy producer in the Fonterra Group.

Tetra Pak says it uses pre-laminated and direct-injection molding that allows the base of the closure neck to be folded as fl at as possible, increasing stacking and packaging effi ciency.

For more information, visit www.tetrapak.com. CMN

REIGATE, U.K. — DuPont says it’s enabling manufacturers of ultra-high temperature (UHT) milk products to in-crease processing capacity, cut costs and benefi t the environment with FoodPro Cleanline, an enzyme from the DuPont Danisco ingredient range that prevents fouling in UHT milk production.

The company says a small dose of FoodPro Cleanline eliminates the build up of milk proteins, sugars and miner-als that caramelize inside UHT units by modifying the phospholipids naturally present in milk prior to heat treatment and limiting the ability of milk compo-nents to settle on the heat exchanger.

“Trials have shown that a UHT processing unit can run for up to more

DuPont offers eco-friendly enzyme for UHTthan twice as long between cleaning cycles when using FoodPro Cleanline. That translates into a noticeable improvement in processing capacity,” says Aurélie Gammelin, DuPont’s global product manager for dairy enzymes. “Because UHT dairy manufacturers use less chemicals, water and energy for cleaning, there is a positive knock-on effect for their environmental profi le. The level of organic material in waste-water is similarly reduced.”

For more information, contact Pernille Holst Moulvad, marketing manager, DuPont Industrial Biosci-ences, at 458-943-5575 or [email protected], or visit www.dupont.com. CMN

ARLINGTON HEIGHTS, Ill. — ITW Muller has enhanced its Raptor series of turntable shrink wrapping machines with Raptor Plus. The new machine has a control panel that can create customized wrap patterns for applications in dairy, beverage and health drink production.

“Our goal was to increase the ease of use with this particular series while still allowing superior adjustability to wrap a wide range of products,” says Dan Schmidt, business development manager for ITW Muller. “The end-product is a highly effi cient, simple and safe machine that lives up to the Raptor name.”

The Raptor Plus, which can wrap up to 35 loads per hour, has adjustable car-riage and turntable speeds. It also has adjustable top and bottom wraps and can store up to 15 programs. The company says a motorized power pre-stretch sys-tem with adjustable fi lm tension control guarantees users optimal fi lm usage, and fi lm tension control ensures superior load containment and helps eliminate fi lm breaks and product damage.

The fi lm carriage is housed inside the tower, which reduces the risk of damage and helps reduce maintenance

and the cost of ownership. The design allows for simple, safe and ergonomic fi lm threading, the company says.

An access ramp, load stabilizer and larger 79-inch turntable diameter are available as upgrades.

“We work tirelessly to provide new solutions that meet every customer need,” says Schmidt. “From easy main-tenance to greater optimization of cost per pallet, the Raptor Plus is one of the most effi cient and reliable turntables on the market.”

For more information visit www.itwmuller.com, e-mail [email protected], or call 1-800-628-6787. CMN

ITW Muller enhances Raptor series with Raptor Plus for customized wrap patterns

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

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Page 32: Industry discusses key dairy state election races, farm bill

32 CHEESE MARKET NEWS® — October 26, 2012

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CHICAGO — Zip-Pak will launch Vec-tor, a new resealable matrix, at Pack Expo International 2012 in booth No. 2002 Oct. 28-31.

The company says the new closure allows consumers to reseal packages without exact alignment of the oppos-ing segments. Vector can be integrated into existing packaging lines with minor modifi cations to machinery.

“At Zip-Pak, we recognize the need to balance innovation and practicality,” says Robert Hogan, director of global marketing at Zip-Pak. “Our new Vector resealable matrix will address the indus-try’s need for a self-sealing, easy-to-use closure that can be rapidly incorporated into the manufacturing lines of brand owners, retailers, and converters for a broad range of products.”

The design allows Vector to be used as a mated fastener for conventional applications and can be combined with Zip-Pak’s new packaging concepts that require a self-sealing closure, including

Zip-Pak plans to launch Vector resealable closure at Pack Expo International 2012

Pour & Lok and Zip360.Pour & Lok is a closure that allows

a product to be poured from the side gusset of packages. Pour & Lok can be pre-applied using Inno-Lok equipment and can run on standard vertical form fi ll seal (VFFS) machines with a side gusset modifi cation.

The Zip360 is a wide-mouth pouch format that features a Vector resealable matrix around the entire opening to en-able easy access to contents and simple closure. With space for graphics around the surface area of the pouch, Zip360 also maximizes the point-of-purchase impact.

Zip-Pak’s booth also will feature an area devoted to Zipbox, which com-bines the structural benefi ts of tradi-tional cartons with the convenience and resealability of fl exible pouches. Ideal for powdered and granular products, Zipbox eliminates the need to transfer contents to a separate container, keeping marketing mes-sages in front of the consumer. CMN

CHICAGO — Schneider Packaging Equipment Co. Inc. has introduced a new palletizer, E3 ROBOX, and Pro-Adjusts, a new add-on solution that automatically adjusts machines when changing sizes or formats.

The company says the E3’s fl exibil-ity simplifi es the handling of multiple SKUs, often without any mechanical changeover. The E3 unit is equipped with fork pockets and can be trans-ported by fork truck between lines for fl uctuating production demands.

With a small footprint, the E3 fi ts into the same space as a manual palletizing station. Available with product labeling and bar code reading for product track-

Schneider debuts new palletizer, add-oning applications, the company says the E3 is well suited for cheese and dairy applications. The unit also is available with semi and full automatic pallet exchange and other options.

“With the introduction of the E3, Schneider now offers the broadest range of robotic palletizing solutions available today, from the small and economical E3 to fully integrated multi-line multi-SKU solutions delivering wrapped and labeled unit loads ready to ship,” says Terry Zarnowski, director of sales and marketing.

The Pro-Adjusts add-on can help man-ufacturers who are faced with demand to produce more SKUs on existing equip-ment while improving both line effi ciency and changeover time. The Pro-Adjusts is designed to provide a solution that can be added on to existing equipment, such as case packer, palletizer, or case loader to name a few, as a fi eld retrofi t.

The company says the Pro-Adjusts fea-tures an easy-to-use, hand-held interface and quick connect power modules that make installation, setup and operation simple and quick. Pro-Adjusts requires no programming and the interface simpli-fi es SKU setup and operation. As product tolerances vary during production, the adjustment points can be adjusted manu-ally or through the interface.

“By automating adjustment points on a machine, changeovers are faster and more accurate, greatly enhancing machine uptime performance and overall equipment effectiveness,” says Zarnowski. “Pro-adjust can be installed onto any machine, even if that machine is not made by Schneider.”

For more information, con-tact Schneider’s sales depart-ment at 315-676-3035 or visit www.schneiderequip.com. CMN

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October 26, 2012 — CHEESE MARKET NEWS® 33

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NEW PRODUCTS FOR DAIRY MANUFACTURERS

PARMA, Italy — GEA Procomac re-cently launched its Fluens 2000, a low in-feed, non-robotized, palletizer, single head and single pallet, which the com-pany believes is the fastest of its kind in the world.

The new palletizer, which is con-sidered to be easier to operate than its predecessors, has out-performed even its expected production rate demonstrating that it is capable of continuous opera-

GEA Procomac launches Fluens 2000 non-robotized palletizer, single head, single pallettion at a rate of more than eight layers a minute, the company says.

This is a rate that, until now, was only possible using high-level machines. Using newly patented technology, the Fluens 2000 achieves this high produc-tivity with less stress on the key me-chanical components, thereby keeping maintenance costs down and reducing the chances of unscheduled downtime.

The palletizer’s simple construction

provides clear access and simple mainte-nance, GEA Procomac says. The design also reduces the costs of the conveyor system between the shrink wrapper and the palletizer and has a much smaller footprint than its rivals.

GEA Procomac is a member of GEA Process Engineering, a business seg-

ment of the GEA Group. It is a world leader in the design, manufacture and installation of complete aseptic fi lling lines for juices, teas, isotonics, still soft drinks, milk, dairy products and water. The products of GEA Procomac’s pack-aging division also are widely used in the food and chemical industries. CMN

MILLBURN, N.J. —Kason Corp. has in-troduced a new Vibroscreen Dewatering-Clarifying Screener with an anti-blinding spray-wash system for separating solid materials from liquids at high rates.

The company says the new screener’s dairy applications include filtering whey and wash waters to recover casein fi nes, screening lactose crystal slurry, recovering curd fi nes from whey and clarifi cation of buttermilk.

The unit contains a screen in a cy-lindrical housing that is supported on a circular base by rugged springs. An imbalanced weight gyratory motor affi xed to the housing imparts vibration, causing solid particles to move across the screen and exit through an upper discharge spout as liquid fl ows through screen apertures onto a tapered pan and exits through a lower discharge spout, the company says.

A manifold positioned above the

Kason introduces new clarifying screenerscreen feeds eight nozzles that spray liquid in wide conical patterns continu-ously or on a timed cycle, preventing solids from blinding the screen. The unit functions as a dewatering screener when separating a small- to medium-percent-age of liquid from a large percentage of solids, and as a clarifi er when separating a small percentage of solids from a large percentage of liquids, the company adds.

It is constructed of epoxy-coated carbon steel, and available in stainless steel to nu-merous sanitary and electrical standards.

The unit is offered in diameters from 18-100 inches, with four to 12 spray-wash nozzles depending on screen diameter. The spray-wash system can also be ret-rofi tted to circular vibratory screeners of any make and model.

For information, contact Kason Corp. at 973-467-8140, [email protected], or visit www.kason.com. CMN

MINNEAPOLIS — Mocon Inc. has made GreenLight instrumentation available for dairy applications. The company’s oxygen-depleting technology for measur-ing aerobic bacterial levels can provide test results for raw milk samples in as little as 30 minutes, the company says.

“Raw milk testing is a time consuming process that removes resources from oth-er value-adding activities. GreenLight’s speed, simplicity, precision and low-cost entry is an ideal productivity-enhancing tool,” says Alan Traylor, business man-ager of food safety products for Mocon.

To conduct the test, the milk sample is poured into a bar-coded APCheck vial, which has built-in sensor material. Raw milk has suffi cient nutrients so that added buffers/reagents or dilutions are not required before testing, unlike tra-ditional testing methods which require

Mocon offers GreenLight for raw milk testingthree dilutions, the company says.

When the company’s fully automated GreenLight 930 is used, the vials can be batch loaded onto the 48-position carousel, or individually loaded at any time during the unit’s “continuous” mode. As bacteria in the test sample multiply and respire, they consume oxygen. The change in oxygen is used to calculate the milk’s colony forming units per milliliter.

There is also a smaller, more compact GreenLight 910 for use closer to the milk source.

“Since raw milk producers are com-pensated based on the bacterial level, it’s important to be able to produce precise and fast results prior to pooling and/or transport. GreenLight can make that hap-pen in an affordable manner,” says Traylor.

For more in format ion ,v i s i t www.mocon.com. CMN

Stainless Motors releases Sanifan TechnologyRIO RANCHO, N.M. — Stainless Mo-tors Inc. has released Sanifan Technol-ogy, a sanitary motor design that aims to improve food safety and sanitation.

The company says Sanifan Tech-nology reduces motor crevices and allows previously inaccessible areas of the motor to be cleaned. Sanifan

Technology also has a sleeker, easier to clean motor exterior and allows contaminates to be fl ushed from the inside out.

For more information contact Gene Filion at 505-867-0224 or [email protected], or vis-it www.stainlessmotors.com.CMN

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

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Page 34: Industry discusses key dairy state election races, farm bill

34 CHEESE MARKET NEWS® — October 26, 2012

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NEW PRODUCTS FOR DAIRY MANUFACTURERS

MORGANTOWN, Pa.—Nilfi sk Indus-trial Vacuums has released the Nilfi sk CFM T Plus series of three-phase industrial vacuums that aim to give food manufacturers cleaning capability required for continuous applications.

The T26 Plus, T48 Plus and T63 Plus vacuums — premium versions of the T Series, launched in June 2012 — are loaded with advanced features that make collecting and retaining contaminants such as dust, bacteria and food scraps fast and hassle-free, the company says.

T Plus vacuums are constructed of a heavy-duty steel frame, polypropylene lid and 26-gallon stainless steel collec-tion container for easier cleaning and

Nilfi sk Industrial Vacuums releases new series of three-phase vacuums for food industryimproved sanitation. The machines come standard with a high-effi ciency main fi lter and upstream fi lter to en-sure that 99.995 percent of particles are retained, down to and including 0.18 microns in size, preventing cross-contamination of product. For further worker safety, the T Plus series is equipped with a phase indicator which prevents the machine from starting if the electrical input signal is out-of-phase.

With a smarter design, the T Plus series offers a wide range of options and upgrades, ideal for process-integration systems, central systems or for general maintenance, including optional down-stream exhaust ULPA fi lter or activated

carbon fi lter and different collection op-tions such as a dust bag for safe disposal of toxic and hazardous material.

Electrical upgrades include auto-matic fi lter cleaning, wet or dry level sensors or remote start/stop, reducing down time for vacuum maintenance.

The T26 Plus, T48 Plus and T63 Plus are compatible with a range of Nilfi sk CFM hoses and accessories, including those for overhead cleaning, to meet specifi c food application requirements.

Maxine Chang, marketing and sales support specialist for Nilfi sk Industrial, says T Plus series applications for the dairy industry include:

•Portable central systems for clean-

ing dairy silos, packaging areas and palletizing areas.

• Powder cleanup in production areas.

•Compatibly with a wide range of accessories for overhead cleaning.

•Wet/dry capabilities for wet cheese cleanup.

• Fixed process vacuum systems for powder fi lling areas.

• Color-coded accessories for eliminating cross contamination and allergen issues.

For more information on Nil-fi sk industrial vacuums, visit www.nilfiskindustrialvacuums.com or call 1-800-645-3475. CMN

Milk Specialties Global develops new protein items EDEN PRAIRIE, Minn. — Milk Spe-cialties Global human nutrition division has announced new developments in its dairy protein and nutraceutical ingredients portfolios.

The company says its Whey Protein Hydrolysate powder allows for compac-tion into tablets with ease, and deliv-ers high-quality, easy-to-digest whey protein.

ProBar Protein Powder is an all-dairy, 90 percent protein matrix that can increase the shelf life of protein bars by preventing hardening that results from moisture migration, the company says.

Instant Micellar Casein is an all-dairy, 90-percent protein powder that will increase the protein content of products while maintaining the clean taste and thick texture desired in snack foods such as Greek yogurt.

For more information e-mail [email protected] or visit www.milkspecialtiesglobal.com.CMN

PenPure starches offer clean labels

CENTENNIAL, Colo. — Penford Food Ingredients says it’s striving to meet the demand for clean-label ingredients with its PenPure portfolio of clean label starches.

PenPure can be used in yogurt, ice cream and smoothie production to re-duce fat and create a creamy mouthfeel, the company says.

“The desire for clean-label food ingre-dients is growing at an exponential rate,” says John Randall, president of Penford Food Ingredients. “Consumers are read-ing labels closely in the grocery aisle. They want food to contain ingredients they recognize. PenPure products are a great option for manufacturers because they are versatile and cost effective.”

The PenPure portfolio of products can function individually or in custom-ized blends.

For more information visit www.penfordproducts.com. CMN

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

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Page 35: Industry discusses key dairy state election races, farm bill

NEWS/BUSINESSOctober 26, 2012 — CHEESE MARKET NEWS® 35

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California producers, processors spar over state’s role in regulating price of milkSACRAMENTO, Calif. — On the heels of last week’s “Rally for California Dairy Relief” that was held at the California State Capitol steps, producer and pro-cessor groups are speaking out about the state’s role in regulating milk prices.

The California Department of Food and Agriculture (CDFA) posted a “State-ment on Milk Pricing” to its website following last week’s rally (see “Dairy farmers hold second rally at California Capitol” in last week’s issue of Cheese Market News.) The CDFA statement explains why California milk prices

are less than federal milk prices and reiterates a commitment to evaluate challenges and work for change through the Dairy Future Task Force.

California Milk Producers Council (MPC) President Rob Vandenheuvel responded, calling the Statement on Milk Pricing “extremely disappointing” and saying CDFA Secretary Karen Ross “completely misses the point” on what dairy families need.

“While California’s cheese manu-facturers have long enjoyed a state-sponsored discount on the milk they

buy, the past three years have seen that discount blow up,” Vandenheuvel says.

“CDFA’s statement also tries to justify this state-sponsored discount by speak-ing of the distance from California to the Northeast cheese market,” he adds. “However, CDFA ignores the fact that cheese processors in Arizona, Oregon and Washington are regulated under the Federal Milk Marketing Order system and are paying these higher prices.”

Vandenheuvel says Ross should announce a hearing immediately and change California’s 4b monthly price to more closely follow the prices paid for comparable milk around the country.

“What is needed is action, not a statement,” he says. “California’s dairy

families need results, not excuses.”Rachel Kaldor, executive director of

the dairy processor organization Dairy Institute of California, says MPC has been painting a deliberately inaccurate picture of both the dairy industry and dairy policy.

Feed prices are up and margins are squeezed, Kaldor says, but four months ago when CDFA held its last hearing, “California was drowning in milk.”

Kaldor says it makes no economic sense to increase prices in an oversup-plied market, and no new large cheese plants have been built in California in the past 10 years. California is defi cit in plant capacity, is the most distant from domestic commercial cheese markets and has the highest cost of getting product to market. The Class 4b price must be a market-clearing price because there is no “de-pooling” option like there is under the federal system, Kaldor says.

“Despite the facts, the MPC mantra has been to tell a partial truth and a partial lie, and point to an illusory price difference between the federal Class III which plants are not obligated to pay and tell California dairy farmers that they are being cheated, by a ‘dis-count’ milk price,” Kaldor says. CMN

Western United Dairymen votes to advance bill that would align whey value in 4b formulaMODESTO, Calif. — Western United Dairymen (WUD) recently announced that its board of directors has voted to advance a bill in the California legislature that would more closely align the whey value in the California 4b formula with the regulated minimum price for whey found in surrounding states. During last Friday’s board meeting, WUD says the board was addressed by fi ve sitting members of the California legislature who pledged their desire to help WUD advance price relief for the state’s dairy farmers.

Earlier this year, the California Department of Food and Agriculture (CDFA) held a hearing regarding milk prices and increased the cap on the whey factor in the Class 4b formula from $0.65 per hundredweight to $0.75 per hundredweight. The state’s dairy pro-ducers expressed disappointment that the increase was not greater. In August WUD petitioned CDFA for an emergency hearing to consider another increase, but the petition was denied. Other dairy groups including Milk Producers Council fi led legal action against CDFA Aug. 31 over Class 4b price alignment,

and California dairy producers last week held a second rally at the State Capitol to demand price relief.

“Too many of our dairy families have fallen victim to a milk pricing formula that has failed to capture adequate revenues for producers in the face of extraordinary feed costs,” says Tom Barcellos, WUD president. “We have repeatedly petitioned the CDFA for relief to little avail. Cali-fornia dairy families are very concerned about their future and have been voicing those concerns. We’re all agreed on the need for action as soon as possible. The WUD board of directors is committed to fi nding a solution that works for all of the industry. We fi nd that our avenues to a better cheese price are blocked leading us to a single lane. That single lane leads us to the California legislature.”

The legislative members addressing the WUD board expressed their concern for California dairy families in light of extreme economic hardship, and WUD staff was directed to craft language to effect the change and organize bipartisan support in Sacramento, Calif., for the legislation. CMN

“What is needed is action, not a

statement. California’s dairy families need

results, not excuses.”

Rob VandenheuvelCALIFORNIA MILK

PRODUCERS COUNCIL

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

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36 CHEESE MARKET NEWS® — October 26, 2012

NEWS/BUSINESS

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www.devilletechnologies.com1-866-404-4545

High capacity shredders and dicers/slicers for cheese, meat, fruits, and vegetables.

FS-40 Shredder/Grater CHS-2D Shredder Hymaks Dicer FlexiFam Dicer

October 28-31, 2012McCormick Place, Chicago, ILVisit Us In Booth E-7645

Kerry Group to establish global tech centerNASS, Ireland — Kerry Group recently announced its plans to establish the Kerry Global Technology & Innova-tion Centre on a 28-acre site in Nass, Ireland, to serve the group’s customers in the Europe, Middle East and Africa (EMEA) regions.

“The establishment of this new global technology and innovation center is con-sistent with the group’s 1 Kerry Strategy for Sustainable Growth, providing our customers with access to Kerry’s total technical and innovation capability to

optimize product differentiation in the marketplace and provide unrivaled speed to market,” says Stan McCarthy, Kerry Group CEO. “Working in tandem with the group’s existing technology and innovation facilities, the new cen-ter will focus group-wide capability to drive strategic customer engagement and sustainable growth.”

The new fl agship center will serve as a focus for Kerry’s customer engagement activities, providing strategic customers with access to the group’s complete range of technologies, scientifi c re-search, innovation and applications across food, beverage and pharmaceu-tical markets. Kerry Group will invest approximately $131 million in the new campus, which will employ 800 people by 2015 and an additional 100 positions when it is fully commissioned by mid-2016. The new Kerry Global Technology & Innovation Centre also will include Kerry Ingredients & Flavors EMEA regional management, 1 Kerry Global Business Services and support functions.

Construction of the new facility will begin in early 2013 once planning is complete.

“This is the largest single investment in food innovation ever by a company in Ireland, and puts Ireland fi rmly at the forefront of global food innovation,” says Richard Bruton, Ireland Minister for Jobs, Enterprise and Innovation. CMN

RESULTSContinued from page 25

Provolone, Mild: Great Lakes Cheese Co., Hiram, Ohio.

Queso Asadero: Cacique Inc., City of Industry, Calif.

Queso Cotija: Cacique Inc., City of Industry, Calif.

Queso Oaxaca: Cacique Inc., City of Industry, Calif.

Queso Panela: Cacique Inc., City of Industry, Calif.

Queso Frescos: Cacique Inc., City of Industry, Calif.

Queso para Fundir: Cacique Inc., City of Industry, Calif.

Rindless Swiss Style Cheese: Great Lakes Cheese Co., Hiram, Ohio; Ralphs

Grocery Co., Compton, Calif.Smoked Cheeses: Rumiano Cheese

Co., Crescent City, Calif.; Vermont Farm-stead Cheese Co., South Woodstock, Vt.; Rumiano Cheese Co., Crescent City, Calif; Smith’s Country Cheese Inc., Winchendon, Mass.

Soft Goat’s Milk Cheeses: Meyen-berg Goat Milk Products, Turlock, Calif.

Spreadable Cheeses: Pineland Farm Creamery (2), New Gloucester, Maine, Horse Radish,Bacon Baby Swiss; Sierra Nevada Cheese Co., Willows, Calif., Garlic Herb; CROPP Cooperative/Organic Valley, La Farge, Wis.; Ralphs Grocery Co. (5), Compton, Calif., Lite Cream Cheese Cup, Cream Cheese Bar, Lowfat Cream Cheese Bar, Whipped Cream Cheese, Soft Cream

Cheese.String Cheese: Ralphs Grocery Co.,

Compton, Calif., Cow Pal; Cacique Inc., City of Industry, Calif.

Sur face (Mold) R ipened Goat ’s Milk Cheeses : Coach Farm, Pine Plains, N.Y., Redwood Hill Farm, Sebastopol, Calif. CMN

Reprinted with permission from the Oct. 26, 2012, edition of CHEESE MARKET NEWS®© Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

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BILL HENNING, Prof LS

BILL HENNING, Prof LS

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