Reprinted with permission from the Aug. 17, 2012, edition of CHEESE MARKET NEWS ® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Matucheski named Grand Master at state fair auction WEST ALLIS, Wis. — Mike Matucheski, cheesemaker at Sartori Co., Plymouth, Wis., was named the 2012 Grand Master Cheese Maker during the 2012 Blue Ribbon Cheese & Butter Auction, held Aug. 10 at Wisconsin State Fair Park. Matucheski, a three-time winner of the Grand Master Cheese Maker title, earned the honor for his Pastorale Blend, the first place entry in the Sheep & Mixed Milk Cheese class at the 2012 Wisconsin State Fair Cheese & Butter Contest held in June. Matucheski previously earned the title in 2009 and 2010. Each blue ribbon entry from the Wisconsin State Fair Cheese & Butter Contest was sold during last Friday’s auction, which raised $34,875 for student scholarships and dairy promotions at the Wisconsin State Fair. While cheese and butter contest entries are judged in June, the Pinterest in cheese: Interest up in picture-based social media By Rena Archwamety MADISON, Wis. — Social media has become the buzz among marketers who are looking to reach consumers where they already spend time and become part of their conversations, networks and day-to-day routines. Most recently, the loudest buzz has been over the image-based Pinterest, a collection of virtual pin boards to which users pin and repin picture-based inspirations such as recipes, decorating tips and travel destinations. “We know Pinterest is the fastest-growing social network, and a lot of our target audience, women, use Pinterest,” says Heather Porter Engwall, director of national product communications, Wisconsin Milk Marketing Board (WMMB), who notes that about 68 percent of Pinterest users are women. WMMB started using Pinterest in February of this year. Its page, pinterest.com/wisconsincheese, includes several recipe pin boards such as “Summer Recipes,” “Creative Sandwiches” and “Heavenly Mac & Cheese,” as well as boards about cheesemaking, pairings and other topics. Since WMMB already has an extensive image database and provides a lot of photos and tips in its other marketing channels, Pinterest was an ideal opportunity to repurpose these for an audience that is looking for tips, recipes and other visual inspiration. “It’s been a great tool for us. We almost look at it as visual story- telling, showing some great images, sharing recipes, tips and videos,” Porter Engwall says. Images posted on WMMB’s “Our Cheese Tips” and “Perfect Pairings” boards get a lot of the repins, Porter Engwall says, while the recipes are the most popular, just as they are on WMMB’s home website. The image pins link to the content’s original website, microsite or blog, 9ROXPH $XJXVW 1XPEHU By Alyssa Sowerwine MADISON, Wis. — Recent strength in dairy product prices at the Chicago Mercantile Ex- change (CME) is leading some analysts to question the outlook for U.S. dairy export demand. Cheddar, butter and nonfat dry milk (NDM) prices at the CME have risen in recent weeks to levels a bit higher than ana- lysts had originally anticipated. “I think prices moved too high, too fast,” says Sara Dor- land, managing partner with Ceres Dairy Risk Management LLC, Seattle. “I would have expected strong prices, but for the U.S. to stay outside of where the world price is today — I’d be surprised if we stay at this level.” Analysts: U.S. price strength may impact export demand While Cheddar barrel and block prices began the month in the upper $1.60s and lower $1.70s per pound, respectively, both have increased quickly over the past two weeks into the $1.80s, with the Cheddar block price breaking into $1.9000 per pound on Thursday. USDA’s Dairy Market News notes that last week’s spot cheese break into the $1.80s is the first time since late No- vember of last year. Extra Grade and Grade A NDM prices, both at $1.40 per pound on Aug. 3, have steadily risen to $1.5750 and $1.6000 per pound, respectively, as of Thursday. Butter also has shown steady price strength over the past few weeks, increasing from $1.6450 per pound Aug. 1 up to $1.7900 as of Thursday. (For today’s market prices, see chart on page 2.) Dorland notes that there is some temporary panic and concern in the industry, with lower projected milk produc- tion and cow numbers. “I think buyers are trying to get ahead before it gets worse and prices go even higher,” she says. Indeed, the CME futures prices for Wednesday show cheese futures in the mid to upper $1.80s — even reaching $1.93 per pound in October — and price strength in the com- ing months also is indicated for Class III milk and butter. (See charts on pages 2 and 3.) Dairy Market News says that “looking ahead, there is some apprehension related to uncertainty over what impact the prolonged drought will have on feed and hay supplies and hence, milk production avail- able for making cheese.” • Producer margin squeeze While higher milk and dairy product prices may be expected, it won’t necessarily yield a profit for dairy farmers who also are facing skyrocketing feed costs due to a smaller and lower-quali- ty corn/feed supply following this summer’s severe drought. Dairy Market News notes that according to the latest crop report from the National Agricultural Statistics Service, corn production is forecast at 10.8 billion bushels, down 13 percent from 2011 and the lowest production since 2006. “Based on conditions as of Aug. 1, yields are expected to average 123.4 bushels per acre, down 23.8 bushels from 2011,” Dairy Market News says. “If realized, this will be the lowest average yield since 1995.” Soybean production is fore- cast at 2.69 billion bushels, down 12 percent from 2011 and the lowest production since 2007. The average yield for soy- beans is forecast at 36 bushels per acre, reduced by 5 bushels per acre compared to 2011. “There is an old saying in commodity markets that small crops tend to get smaller,” says Todd Davis, an economist with the American Farm Bureau Federation. “If this holds true, then future reports will show declining projected produc- tion for corn and soybeans and further reduction in projected demand. This will also mean higher projected prices and great volatility in the com- modity markets as demand is rationed and more supply is encouraged worldwide.” James Dunn, professor of agricultural economics at Penn State University, notes that speaking with a local farmer “who is really on top of his costs,” the farmer says he is getting “ham- mered” by feed costs, despite being in Pennsylvania where the weather has not been as dry. “He has the financial re- serves to ride it out, but he needs to buy feed to supplement his home production, and that means his break-even price More Calif. dairy groups respond to WUD petition A ) Guest columnist: ‘A view from the fence post.’ For details, see page 4. ) Shatto Dairy cleared to resume operations. For details, see page 4. ) Delkor Systems plans move to new facility. For details, see page 5. ) DBIC’s Dan Carter honored by NASFT as ‘pioneer’ in specialty food industry. For details, see page 10. INSIDE Turn to PRICES, page 11 D Turn to AUCTION, page 8 D SACRAMENTO, Calif. — Several dairy businesses and organizations have sent letters to the California Department of Food and Agriculture (CDFA), com- menting on a petition West- ern United Dairymen (WUD) submitted earlier this month that requests an emergency hearing to consider milk price increases. (See “WUD requests emergency hearing Turn to PETITION, page 8 D Turn to PINTEREST, page 10 D Scan this code for breaking news and the latest markets!
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Reprinted with permission from the Aug. 17, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
Matucheski named Grand Master at state fair auctionWEST ALLIS, Wis. — Mike Matucheski, cheesemaker at Sartori Co., Plymouth, Wis., was named the 2012 Grand Master Cheese Maker during the 2012 Blue Ribbon Cheese & Butter Auction, held Aug. 10 at Wisconsin State Fair Park.
Matucheski, a three-time winner of the Grand Master Cheese Maker title, earned the honor for his Pastorale Blend, the first place entry in the Sheep & Mixed Milk Cheese class at the 2012 Wisconsin State Fair Cheese & Butter Contest held in June. Matucheski previously earned the title in 2009 and 2010.
Each blue ribbon entry from the Wisconsin State Fair Cheese & Butter Contest was sold during last Friday’s auction, which raised $34,875 for student scholarships and dairy promotions at the Wisconsin State Fair.
While cheese and butter contest entries are judged in June, the
Pinterest in cheese: Interest up in picture-based social mediaBy Rena Archwamety
MADISON, Wis. — Social media has become the buzz among marketers who are looking to reach consumers where they already spend time and become part of their conversations, networks and day-to-day routines.
Most recently, the loudest buzz has been over the image-based Pinterest, a collection of virtual pin boards to which users pin and repin picture-based inspirations such as recipes, decorating tips and travel destinations.
“We know Pinterest is the fastest-growing social network, and a lot of our target audience, women, use Pinterest,” says Heather Porter Engwall, director of national product communications, Wisconsin Milk Marketing Board (WMMB), who notes that about 68 percent of Pinterest users are women.
WMMB started using Pinterest in February of this year. Its page, pinterest.com/wisconsincheese, includes several recipe pin boards such as “Summer Recipes,” “Creative Sandwiches” and “Heavenly Mac & Cheese,” as well as boards about cheesemaking, pairings and other topics.
Since WMMB already has an extensive image database and provides a lot of photos and tips in its other marketing channels, Pinterest was an ideal opportunity to repurpose these for an audience that is looking for tips, recipes and other visual inspiration.
“It’s been a great tool for us. We almost look at it as visual story-telling, showing some great images, sharing recipes, tips and videos,” Porter Engwall says.
Images posted on WMMB’s “Our Cheese Tips” and “Perfect Pairings” boards get a lot of the repins, Porter Engwall says, while the recipes are the most popular, just as they are on WMMB’s home website. The image pins link to the content’s original website, microsite or blog,
9ROXPH�����������������������������$XJXVW����������������������������1XPEHU����
By Alyssa Sowerwine
MADISON, Wis. — Recent strength in dairy product prices at the Chicago Mercantile Ex-change (CME) is leading some analysts to question the outlook for U.S. dairy export demand.
Cheddar, butter and nonfat dry milk (NDM) prices at the CME have risen in recent weeks to levels a bit higher than ana-lysts had originally anticipated.
“I think prices moved too high, too fast,” says Sara Dor-land, managing partner with Ceres Dairy Risk Management LLC, Seattle. “I would have expected strong prices, but for the U.S. to stay outside of where the world price is today — I’d be surprised if we stay at this level.”
Analysts: U.S. price strength may impact export demand
While Cheddar barrel and block prices began the month in the upper $1.60s and lower $1.70s per pound, respectively, both have increased quickly over the past two weeks into the $1.80s, with the Cheddar block price breaking into $1.9000 per pound on Thursday.
USDA’s Dairy Market News notes that last week’s spot cheese break into the $1.80s is the first time since late No-vember of last year.
Extra Grade and Grade A NDM prices, both at $1.40 per pound on Aug. 3, have steadily risen to $1.5750 and $1.6000 per pound, respectively, as of Thursday.
Butter also has shown steady price strength over the past few weeks, increasing from $1.6450 per pound Aug. 1 up to $1.7900 as of Thursday. (For today’s market prices, see chart on page 2.)
Dorland notes that there is some temporary panic and concern in the industry, with lower projected milk produc-tion and cow numbers.
“I think buyers are trying to get ahead before it gets worse and prices go even higher,” she says.
Indeed, the CME futures prices for Wednesday show cheese futures in the mid to upper $1.80s — even reaching
$1.93 per pound in October — and price strength in the com-ing months also is indicated for Class III milk and butter. (See charts on pages 2 and 3.)
Dairy Market News says that “looking ahead, there is some apprehension related to uncertainty over what impact the prolonged drought will have on feed and hay supplies and hence, milk production avail-able for making cheese.”• Producer margin squeeze
While higher milk and dairy product prices may be expected, it won’t necessarily yield a profit for dairy farmers who also are facing skyrocketing feed costs due to a smaller and lower-quali-ty corn/feed supply following this summer’s severe drought.
Dairy Market News notes that according to the latest crop report from the National Agricultural Statistics Service, corn production is forecast at 10.8 billion bushels, down 13 percent from 2011 and the lowest production since 2006.
“Based on conditions as of Aug. 1, yields are expected to average 123.4 bushels per acre, down 23.8 bushels from 2011,” Dairy Market News says. “If realized, this will be the lowest average yield since 1995.”
Soybean production is fore-
cast at 2.69 billion bushels, down 12 percent from 2011 and the lowest production since 2007. The average yield for soy-beans is forecast at 36 bushels per acre, reduced by 5 bushels per acre compared to 2011.
“There is an old saying in commodity markets that small crops tend to get smaller,” says Todd Davis, an economist with the American Farm Bureau Federation. “If this holds true, then future reports will show declining projected produc-tion for corn and soybeans and further reduction in projected demand. This will also mean higher projected prices and great volatility in the com-modity markets as demand is rationed and more supply is encouraged worldwide.”
James Dunn, professor of agricultural economics at Penn State University, notes that speaking with a local farmer “who is really on top of his costs,” the farmer says he is getting “ham-mered” by feed costs, despite being in Pennsylvania where the weather has not been as dry.
“He has the financial re-serves to ride it out, but he needs to buy feed to supplement his home production, and that means his break-even price
More Calif. dairy groups respond to WUD petition
A
)�Guest columnist: ‘A view from the fence post.’ For details, see page 4.
)�Shatto Dairy cleared to resume operations. For details, see page 4.
)�Delkor Systems plans move to new facility. For details, see page 5.
)�DBIC’s Dan Carter honored by NASFT as ‘pioneer’ in specialty food industry. For details, see page 10.
INSIDE
Turn to PRICES, page 11 D
Turn to AUCTION, page 8 D
SACRAMENTO, Calif. — Several dairy businesses and organizations have sent letters to the California Department of Food and Agriculture (CDFA), com-menting on a petition West-ern United Dairymen (WUD) submitted earlier this month that requests an emergency hearing to consider milk price increases. (See “WUD requests emergency hearing Turn to PETITION, page 8 DTurn to PINTEREST, page 10 D
Scan this code for breaking news and the latest markets!
Reprinted with permission from the Aug. 17, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Aug. 17, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the Aug. 17, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
2 CHEESE MARKET NEWS® — August 17, 2012
MARKET INDICATORS
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.
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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]
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Reprinted with permission from the Aug. 17, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the Aug. 17, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
August 17, 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.
For more information please visit www.cheeseshredder.com
NEWS/BUSINESS MARKET INDICATORS
www.cheeseshredder.comWASHINGTON — USDA’s Economic Research Service recently released its 2011 data on estimated per capita consumption of cheese and other dairy products in the United States.
USDA’s estimate of average per capita consumption of American, cottage and other types of cheeses was 36.0 pounds, up from 35.3 pounds per person in its 2010 estimate. Per capita American cheese consumption remained the same in 2011 as 2010 at 13.4 pounds. Cottage cheese consumption per capita fell slightly from 2.4 pounds in 2010 to 2.3 pounds in 2011. Average per capita consumption of other types of cheese rose from 19.5 pounds in 2010 to a record 20.3 pounds in 2011.
Per capita consumption of fluid milk and cream in 2011 decreased to an all-time low of 201.0 pounds for the year, compared to 206.0 pounds in 2010.
Slightly less frozen dairy was con-sumed per capita in 2011 than 2010,
Per capita cheese consumption up in 2011with a combined total of 20.6 pounds of frozen dairy products consumed for each person in 2011, down from 20.8 pounds in 2010. Per capita consumption of regular ice cream was estimated at 11.5 pounds in 2011, down from 11.9 pounds in 2010. Consumption of reduced-fat ice cream went up to 6.3 pounds per person in 2011 from 6.0 pounds in 2010. Sherbet con-sumption per capita fell from 1.0 pounds in 2010 to 0.9 pounds in 2011, and other frozen products remained at 1.9 pounds per person in both 2011 and 2010.
Per capita consumption of butter in 2011 was estimated at a record 5.4 pounds, up from 4.9 pounds in 2010.
Per capita consumption of all dairy products in 2011 on a milk equivalent, milkfat basis was 604.0 pounds, un-changed from 2010.
For more information, visit www.ers.usda.gov/data-products/dairy-data.aspx. CMN
Percent change versus
*Source: U.S. Department of Commerce. For index, prices during 1982-84 = 100.
Cheese & related productsDairy & related products All Food
2 years +6.6 +7.8 +6.6
1 year -1.3 -0.2 +2.3
6 mo. -4.1 -2.7 +0.4
July 2012218.037214.434233.630
1 mo. -1.1 -0.5+0.0
RETAIL PRICES (Consumer Price Index*)
Reprinted with permission from the Aug. 17, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Aug. 17, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the Aug. 17, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
4 CHEESE MARKET NEWS® — August 17, 2012
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Perspective:Market Insight
A view from the fence post
G U E S T C O L U M N I S T C M N E x c l u s i v e !
Mother Nature turned off the water and turned on the heat this summer, and dairy producers across the country have paid dearly. Anxiety is just one draining emotion conjured up by the near 60-percent rise in corn futures prices in just one month’s time. On June 15, December corn futures at Chicago Board of Trade finished at $5.06 a bushel. As of this writing, December is a shade over $8.00 a bushel.
Class III milk — and to a lesser degree butter and powder — have re-sponded proudly to the one-sided supply driven rally in grain prices. In fact, it is safe to say that the vast preponderance of the 30- to 35-percent rally in Class III prices since the beginning of May has been directly related to weather. Not export demand, not for a lack of fresh,
physical product available and certainly not because the markets want to ensure dairy farm profitability.
The dairy complex has risen instead because the majority believes that there will be material damage done to the milk supply in this country. And there has. The USDA reported just a 1 percent gain in milk production during the heat blast in June this year. A number that I believe will be revised lower. And expectations for July milk production are certainly no better. Heat and a lack of quality feed are on the forefront of traders’ minds today, but the problem is much deeper than that.
Over the past several years, U.S. dairy producers have undergone a sort of unexpected supply growth manage-ment program courtesy of the free
market. Lofty feed prices chomped away at dairy equity leaving even the best producers feeling vulnerable failure. With real estate capital pulverized and rising input costs, every dairy producer in the country got a front row seat to see how profitable dairies can be if not influenced by cheap feed and outside money. At worst profit margins were eradicated over the past three years; at best profit margins were razor thin.
Sometimes it’s worthwhile to take a moment and step back from the crazed market commentaries flying around lately. Businesses don’t run on empty forever. If history is our guide, the chips won’t stay stacked against dairy farm-ers indefinitely especially because the outlook for dairy product demand is so bright.
Dairy is a staple to us — something we American consumers often take for granted. But it is quickly becom-ing indispensable to diets around the globe. While pain and toil is felt on the dairy farm, the world is taking notice of the quality of our dairy products. Although current spot price levels substantially reduce our ability to ex-port U.S. product, demand for cheese in general and export in particular has impressed this year amid some of the most worrisome concerns over global economic instability.
Initially our entrée into the global marketplace was rather a risky proposi-tion for tried and true U.S. processors. Drought in Oceania in particular caused international buyers to knock on our door and truth-be-told — we only reluc-tantly serviced their needs. At the time
we made products the U.S. population enjoyed with one small caveat: the gov-ernment better be able to buy it. Over the past five years, however, the major U.S. processors see the opportunities abroad and have taken a more progres-sive approach to drive export business, and it’s working.
When we merge a dwindling milk supply with a growing hunger for dairy products globally, the risk for dairy prices is not down — but up. And while we’ve seen a significant increase in prices already due to weather, the stage is fundamentally set for even higher prices almost regardless of what hap-pens to feed prices as we roll into 2013.
Since I’m operating under the theory that milk production across many of our nation’s top producing regions will remain in short supply for the balance of this lactation (8-11 months or so), demand will be a driving factor going forward. Unless you can answer how demand will truly look next year or how interest rate fluctuations will impact your bottom line (among a myriad of other factors) managing price risk when it makes sense — not when emotions run high — is just good business these volatile days.
There will be setbacks on futures prices from time to time, but we’re on the path to much higher dairy prices in 2013 and likely much bet-ter dairy farm profitability. CMN
The views expressed by CMN’s guest columnists are their own opinions and do not necessarily reflect those of Cheese Market News®.
NEWS/BUSINESS
OSBORN, Mo. — Missouri state of-ficials this week announced that the plant permit for Shatto Dairy has been reinstated following a recall of milk products last week.
The state milk board and depart-ments of ag and health last week an-nounced the recall after tests results indicated levels of residual phosphatase above the standard for Grade A pas-teurized milk after routine testing of samples from Shatto Dairy. The dairy’s plant operations were temporarily suspended. (See “Missouri announces
Shatto Dairy cleared to resume operationsmilk product recall from Shatto Dairy” in last week’s issue.)
Test results received Wednesday indicate that levels of residual phos-phatase, an indicator of pasteurization, now are within the standard for Grade A pasteurized milk. As a result, Shatto Dairy’s permit was reinstated by Mis-souri’s State Milk Board.
Consumers who may have products included in last week’s recall should dis-card them or return them to their point of purchase. A list of those products is available at www.mda.mo.gov. CMN
ARLINGTON, Va. — Cooperatives Work-ing Together (CWT) has accepted 12 requests for export assistance submitted by Dairy Farmers of America, Darigold and United Dairymen of Arizona to sell 3.1 million pounds (1,417 metric tons) of Cheddar and Monterey Jack and 661,387 pounds (300 metric tons) of butter to customers in Asia, the Middle East and the South Pacific. The product will be delivered through January 2013.
In 2012, CWT has assisted member cooperatives in making export sales
CWT assists with export of cheese, butterof Cheddar, Monterey Jack and Gouda totaling 73.6 million pounds (adjusted for cancellations), and butter and anhydrous milkfat totaling 56.6 mil-lion pounds, to 33 countries on four continents. On a butterfat basis, the milk equivalent of these exports is 1.914 billion pounds, or the same as the annual milk production of 91,000 cows.
CWT will pay export bonuses to the bidders only when delivery of the product is verified by the submission of the required documentation. CMN
WASHINGTON — The U.S. Centers for Disease Control and Prevention (CDC) recently sent a letter to state and ter-ritorial public health officials, urging them to support pasteurization of milk sold to consumers and encouraging them to consider further restricting or prohibiting the sale and distribution of raw milk and other unpasteurized dairy products in their states.
The letter comes at a time when several sates are considering relaxing
Letter from Centers for Disease Control urges state officials to tighten raw milk regulationssome of their raw milk laws, the Inter-national Dairy Foods Association (IDFA) notes. IDFA says bills that would allow or increase sales of unpasteurized milk to consumers recently have been intro-duced in several states, including Indi-ana, Iowa, Kentucky, Massachusetts and New Jersey, but they have not yet passed.
“Despite the federal ban on sale of raw milk across state lines and broad use of pasteurization in the dairy industry, human illness and outbreaks associated
with consumption of unpasteurized products continue to occur. Raw milk is still available for sale in many states, and CDC data shows that the rate of raw milk-associated outbreaks is higher in states in which the sale of raw milk is legal than in states where sale of raw milk is illegal,” writes Robert Tauxe, deputy director, division of foodborne, waterborne and environmental diseases for CDC’s National Center for emerging and Zoonotic Infectious Diseases, in the letter that is addressed to state and
territorial epidemiologists and state public health veterinarians.
Tauxe also draws attention to the raw milk website recently updated by CDC that contains information and materials, including a list of relevant publications and other scientific re-sources on illnesses associated with raw milk consumption. He says this information can be shared with those involved in foodborne outbreak investigations and the regulation of unpasteurized dairy products. CMN
Reprinted with permission from the Aug. 17, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the Aug. 17, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
August 17, 2012 — CHEESE MARKET NEWS® 5
NEWS/BUSINESS
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WASHINGTON — U.S. exports of dry in-gredients (milk powder, whey, lactose), cheese and butterfat in the second quar-ter of 2012 totaled 978.8 million pounds, up 13 percent from the same period last year, according to trade data recently released by USDA’s Foreign Agricultural Service and reported by the U.S. Dairy Export Council (USDEC). (The figures released by USDA and USDEC are in metric tons; Cheese Market News has converted the data to pounds by multiplying by 2,204.6.)
The value of total dairy exports in June was $437 million, up 4 percent from June 2011. Volumes of milk pow-der, cheese, butterfat and dry whey were lower in June after a very strong performance in May, USDEC says.
U.S. cheese exports were lighter in June, with volumes down 13 percent from May on a daily-average basis, though still above a year ago, USDEC reports. June cheese exports totaled 51.8 million pounds, up 17 percent from June 2011. Year-to-date through June, cheese exports totaled 310.3 million pounds, up 18 percent from the first half of 2011.
Milk powder exports in June totaled 91.5 million pounds, up 8 percent from
Cheese export volumes down 13 percent from May, up 17 percent from June 2011
a year ago. Reported exports of nonfat dry milk/skim milk powder (NDM/SMP) totaled 86.3 million pounds, down 11 percent from May volume on a daily-average basis but up 3 percent from June 2011. Whole milk powder (WMP) exports in June totaled 5.2 million pounds, up 220 percent from a year earlier.
Whey exports reached a record high in June, USDEC says, with a total of 95.8 million pounds of whey proteins exported, up 19 percent from a year earlier. June whey exports were led by very strong shipments of whey protein concentrate (up 18 percent vs. the May daily average), offsetting lower ship-ments of dry whey (down 10 percent vs. May).
U.S. exports of lactose in June totaled 58.0 million pounds, down 3 percent from June 2011.
The values of exports to the three top U.S. export markets in June were down compared to a year earlier. Dairy exports to Mexico were valued at $90 million, down 21 percent; exports to Southeast Asia were valued at $84 million, down 11 percent; and exports to Canada were valued at $43 million in June, down 4 percent from a year earlier. CMN
WASHINGTON — FDA in the Aug. 1 Federal Register published its fiscal year 2013 schedule for fees associated with facility reinspections, failure to comply with a recall order and import reinspections.
FDA established an hourly fee of $221 for all domestic work and $289 if foreign travel is required. The fees, which are slightly lower than the 2012 rates, will be in effect Oct. 1, 2012, through Sept. 30, 2013.
Under the Food Safety Moderniza-tion Act, FDA has the authority to assess and collect fees from domestic facilities,
FDA publishes fiscal year 2013 schedule for fees associated with reinspections, recallsimporters and U.S. agents of foreign facilities subject to a reinspection to cover reinspection-related costs. FDA also may collect fees to cover recall activity costs for domestic facilities and importers that do not comply with recall orders.
The fees apply to facilities rein-spected by FDA following a previous inspection that had a final classification of Official Action Indicated and where FDA determined the non-compliance was materially related to food safety requirements. FDA will reinspect to determine whether corrective and ef-
fective actions have been implemented and compliance has been achieved to the agency’s satisfaction.
Highlights for fiscal year 2013 include:
• FDA plans to issue additional guidance this year to provide more information about the circumstances that would trigger reinspection fees.
• No invoices will be issued for fees related to recalls or reinspections until FDA publishes guidance that details
how small businesses may request a reduction in fees; this means that all companies, regardless of size, will not be billed until the new guidance is issued.
• FDA will not assess importer rein-spection fees until some of the complex issues raised about the fees in comments have been resolved.
Written or electronic comments on the fees are due Oct. 31. Elec-tronic comments may be submit-ted at www.regulations.gov. CMN
SAN FRANCISCO, Calif. — The U.S. Court of Appeals for the Ninth Circuit in California recently reversed a lower court’s dismissal of a national class ac-tion lawsuit against California Dairies Inc. (CDI) and DairyAmerica.
The case claims that the defendants inflated profits at the expense of U.S. dairy farmers by misreporting data used by the government to set raw milk prices. Dairy farmer plaintiffs from states other than California who sold raw milk prices under federal orders between Jan. 1, 2002, and April 30, 2007, seek compensation for what they allege are millions of dollars lost due to the alleged price manipulation.
In overturning the February 2010 U.S. District Court ruling, the court of appeals considered the “filed rate
Federal appeals court rules that lawsuit against CDI, DairyAmerica can continue
doctrine,” which bars certain lawsuits from recovering damages when govern-ment agencies such as USDA approve rates or prices for regulated industries, including the dairy industry.
The appeals court ruled that the filed rate doctrine does not preclude dairy farmers from suing the dairy firms in this case because USDA’s National Agricul-tural Statistics Service had concluded that the pricing data was incorrect.
“We are pleased with the court’s decision and look forward to prosecut-ing this case on behalf of American dairy farmers,” says Benjamin Brown of Cohen Milstein Sellers & Toll PLLC, lead counsel for the plaintiffs.
Inquiries to CDI and Dairy-America seeking comment were not returned by press time. CMN
MINNEAPOLIS — Delkor Systems Inc. recently announced that this fall it is moving to a new 114,000-square-foot facility in St. Paul, Minnesota.
Delkor Systems currently is located in the northern part of Minneapolis. The company was established there in 1973.
Delkor Systems’ new facility in St. Paul is designed to accommodate up
Delkor Systems plans move to new facilityto 250 employees and provide state-of-the-art engineering and manufacturing capabilities, company officials say.
Delkor manufactures packaging equipment for the food, beverage and consumer product markets in North and South America as well as Australia and New Zealand.
For more information, visit www.delkorsystems.com. CMN
SAN FRANCISCO — The Good Food Awards began accepting contest entries from producers of cheese and other foods and beverages Aug. 5.
A blind tasting with 130 food industry leaders will determine this year’s 100 winners, who will be showcased in San Francisco at a one-day Good Food Awards Marketplace within the Ferry Plaza Farmers Market.
“The awards are a way to publicly recognize the people who are not satis-fied with the status quo, but continue to push their industries towards greater craftsmanship and sustainability,” says Sarah Weiner, director of the Good
Good Food Awards entries accepted through Aug. 31; winners showcase is at Ferry Plaza
Food Awards. “They are food crafters from small towns and big cities who are maintaining an important piece of our cultural heritage — the food we eat — while enhancing our agricul-tural landscape and building strong communities.”
Entries will be accepted through Aug. 31. To enter, register at www.goodfoodawards.org. A $50 process-ing fee is required. All products must be self-certified by the producer as meeting the category-specific cri-teria of social and environmen-tal responsibility outlined on the entry form. CMN
Reprinted with permission from the Aug. 17, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Aug. 17, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the Aug. 17, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
6 CHEESE MARKET NEWS® — August 17, 2012
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August 17, 2012 — CHEESE MARKET NEWS® 7
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8 CHEESE MARKET NEWS® — August 17, 2012
For more information please visit www.idfa.org
Policy & PoliticsConferenceSeptember 19 – 21, 2012
Mayflower Renaissance HotelWashington, D.C.
Pundits?Pollsters?
Cable News?
Where can you find out about theelection year issues that mattermost to you and your business?
At IDFA’s 2012 Policy & Politics ConferenceYou won’t want to miss this new IDFA conference just
before the 2012 elections and the expiration of current farm programs. Join us in our nation’s capital to get
up-to-the-minute, firsthand insights from leaders in Congress.
Register today at www.idfa.org.
1250 H St., NW, Suite 900, Washington, D.C. 20005, phone: (202) 737-4332, fax: (202) 331-7820, www.idfa.org
WASHINGTON — The International Dairy Foods Association (IDFA) will hold its Policy & Politics Conference here Sept. 19-21.
The event, which is held every four years, features leaders and policy makers on Capitol Hill.
This year’s event will focus on the political landscape of the future, from who will control the next Congress to farm bill policy proposals. The two-day
EVENTS
IDFA to host Policy & Politics Sept. 19-21conference also will provide inside ac-cess to some of the most influential leaders in the country.
Held in conjunction with the IDFA board meeting, sponsorship opportunities at the conference al-low for company promotion to the leaders of the dairy industry. Sev-eral options are available at vary-ing price points. For more infor-mation visit www.idfa.org. CMN
NEWS/BUSINESS
GRAND MASTER — Mike Matucheski, second from left, cheesemaker at Sartori Co., Plymouth, Wis., was named the 2012 Grand Master Cheese Maker during the 2012 Blue Ribbon Cheese & Butter Auction, held last Friday at Wisconsin State Fair Park. Matucheski received the award for his Pastorale Blend, the first place entry in the Sheep & Mixed Milk Cheese class at the Wiscon-sin State Fair Cheese & Butter Contest, held in June. Also pictured, from left, are Ben Brancel, Wisconsin secretary of agriculture; Alice in Dairyland Rochelle Ripp; Fairest of Fairs Richelle Kastenson; and Brianna Ditzenberger, Green County Cheese Days ambassador.
AUCTIONContinued from page 1
Turn to BIDS, page 11 D
Grand Master award is kept secret until the Wisconsin State Fair’s auction. To lead off the evening of bidding, 20 pounds of Matucheski’s award-winning Pastorale Blend was sold for $100 per pound, or a total of $2,000, to US Jesco, Carrollton, Texas.
Other first place cheese and butter entries and winning bidders in each category are as follows:
Lot 1 — Mild Cheddar: Dan Stearns, Agropur, Weyauwega, made the 42 pounds of Mild Cheddar purchased by R. Muel-ler Service & Equipment, Monroe, Wis., for $120 per pound, or a total of $5,040.
Lot 2 — Swiss Styles: Team Emmi Roth, Emmi Roth USA, Monroe, made the 20 pounds of Petite Swiss purchased by Ivarson, Milwaukee, for $100 per pound, or a total of $2,000.
Lot 3 — Flavored Soft Cheese: Terry Lensmire, Agropur, Weyauwega, made the 13 pounds of Feta with Basil & Tomato purchased by Cargill, Waukesha, Wis., for $130 per pound, or a total of $1,690.
Lot 4 — Goat Milk Cheese: Douglas
Waechter, Montchevre-Betin, Belmont, made the 10 pounds of Blueberry Vanilla Goat Cheese purchased by DCI Cheese Co., Richfield, Wis., for $180 per pound, or a total of $1,800.
Lot 5 — Open Class — Hard Cheese: Team Almena, DCI Cheese Co. made the 22 pounds of Aged Asiago purchased by DCI Cheese Co. for $70, or a total of $1,540.
Lot 6 — String Cheese: Steven Tol-lers, Burnett Dairy Co-op, Grantsburg, made the 10 pounds of String Cheese purchased by Saz’s, Milwaukee, for $110 per pound, or a total of $1,100.
Lot 7 — Blue Veined Cheese: Nel-son Schrock, Salemville Cheese Co-op, Cambria, made the 12 pounds of Reserve Blue purchased by DCI Cheese Co. for $60 per pound, or a total of $720.
Lot 8 — Pasteurized Process Cheese, Cheese Food, Cheese Spread: John Breene, Dairy Farmers of Amer-ica, Plymouth, made the 10 pounds of American Pasteurized Process Cheese purchased by Wisconsin Aging & Grad-ing Cheese, Little Chute, Wis., for $50 per pound, or a total of $500.
on price increases” in last week’s issue of Cheese Market News.)
In addition to requesting an emer-gency hearing, the WUD petition proposes a temporary 50-cent-per-hundredweight increase for all milk classes, the removal of the whey value cap in the Class 4b formula and a scale that more closely mirrors the whey value in Class III pricing.
The California Dairy Campaign (CDC) sent a letter dated Aug. 10 to CDFA Sec-retary Karen Ross in support of the WUD petition and proposals. WUD says the decision that resulted from the Class 4b hearing that took place earlier this year failed to restore equity to the dairy pricing system, and California dairy producers continue to be paid significantly less than dairy producers in surrounding states.
Other dairy producers and organiza-tions backing the WUD petition include the California Dairywomen Association,
Lorinda Dairy, Teixeira Dairy, Dairy Central and Soares Dairy.
Dairy processors and processor organizations have voiced opposition to the WUD petition, saying that another hearing just weeks after the decision on the previous hearing will increase uncertainty and create a challenging business climate.
Hilmar Cheese Co., Saputo and the Dairy Institute of California have sent letters urging Ross to deny the emergency hearing WUD has requested. California Dairies Inc. (CDI) this week sent a letter saying it is not supportive of the petition to increase the minimum prices for Classes 4a and 4b. However, CDI says it does support the effort to more closely align California whey pricing with the federal milk marketing orders, an exemp-tion for whey pricing for smaller cheese plants, and emergency and temporary increases for minimum prices paid by processors of Class I, II and III products.
For more information and updates, visit http://www.cdfa.ca.gov/dairy/uploader/postings/petitions/. CMN
PETITIONContinued from page 1
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August 17, 2012 — CHEESE MARKET NEWS® 9
For more information please visit www.dptc.calpoly.edu
Continuing Education for Industry Professionals
Dairy Products Technology Center
15th Annual Dairy Science and Technology Basics for the Farmstead/Artisan CheesemakerBasics of quality cheese manufacture with emphasis on artisan/farmstead cheese manufacture. Includes 1 day of hands-on cheese making activities, cheese sensory evaluation, and other considerations in starting a small scale cheese making business.Location: Cal Poly Dairy Products Technology Center, San Luis Obispo, CA Date: September 11-14, 2012 Cost: $725.00 if registered by August 24, 2012 $775.00 if registered after August 24, 2012
5th Annual Dairy Technology 101Designed to be an introductory course which emphasizes basics of milk composition, milk quality, basic unit operations in milk handling and processing, and aspects of testing of milk and milk products.Location: Cal Poly Dairy Products Technology Center, San Luis Obispo, CA Date: October 2-3, 2012 Cost: $345 if registered by September 11, 2012 $395 if registered after September 11, 2012
*NEW* Artisan/Farmstead Cheese Safety and Quality Training WorkshopsThis one-day workshop will provide key information on food safety specifically designed for artisan/farmstead cheesemakers. The workshop will review key aspects of micro-organisms most relevant to cheese safety. Best practices to maintain, monitor, and control cheese making operations to manage food safety concerns will be presented along with case studies to highlight specific practices important for artisan cheese making operations.Location: Rohnert Park, CA Location: Visalia, CA Date: November 15, 2012 Date: November 16, 2012 Cost: $49.00 if registered by Nov. 1, 2012 Cost: $49.00 if registered by Nov. 1, 2012 $99.00 if registered after Nov. 1, 2012 $99.00 if registered after Nov. 1, 2012
15th Annual Dairy Ingredients SymposiumDesigned to provide an overview and update on the latest trends and issues in the marketing, science, manufacturing technology and application of dairy ingredients, including whey-derived and milk-derived concentrates and powders.Location: The Stanford Court Renaissance San Francisco Hotel, San Francisco, CA Date: February 21-22, 2013 Cost: $475 if registered by January 28, 2013 $525 if registered after January 28, 2013
DAIRY PRODUCTS TECHNOLOGY CENTERCALIFORNIA POLYTECHNIC STATE UNIVERSITY – SAN LUIS OBISPO, CA
For detailed information or to register for these courses, contact: Laurie JacobsonPhone: (805) 305-5056 | E-mail: [email protected] for the latest information, please visit our website at www.dptc.calpoly.edu
MADISON, Wis. — The Wisconsin Milk Marketing Board(WMMB)will hold an Expo from Nov. 6-8 in three locations around Wisconsin.
The expo begins Nov. 6 in Madison, continues Nov. 7 in Eau Claire and con-cludes Nov. 8 in Green Bay.
The program format includes updates from WMMB retail, foodservice and cheese company communication program managers, along with a networking lun-cheon and an afternoon expo in which attendees can meet one-on-one with WMMB’s staff.
“We pack a lot of information and
SYRACUSE, N.Y. — The Northeast Dairy Foods Association (NEDFA) and the Pennsylvania Association of Milk Dealers will hold their 24th annual combined conference Sept. 23-25.
A variety of social programs are planned, along with a golf tournament and an awards banquet presentation Sept. 24.
The following sessions are planned:• William Freeman, coordinator of
Chesapeake Corporation Development, will discuss natural gas and the future of transportation.
• Donna Berry, CEO, Berry on Dairy.com, will discuss new dairy products.
• David Patty, president of Penn-sylvania Business Council, will discuss elections, politics, prognostications and more.
• Douglas Adams, of Prime Consult-ing Group Inc., will discuss school milk, meals, trends and requirements.
• Robert LaBerge, of Bond, Schoe-neck & King Law Firm, will discuss how unionization and laws impact business.
• Frederick Pritzker, president, Pritzker Olsen Attorneys, will discuss raw milk consumption and conse-quences.
• Robert Ralyea, senior extension associate, Cornell University Depart-ment of Food Science, will provide a food science update.
For more information, or to register, contact the NEDFA at 315-452-6455 or visit www.nedairyfoods.org. CMN
MADISON, Wis.— Jeanne Carpenter of Wisconsin Cheese Originals, who calls herself the Cheese Geek, and Sara Hill of Wisconsin Milk Marketing Board, who calls herself the Cheese Guru, will hold three classes on artisan cheese here this fall.
Attendees may sign up for all three classes at $90 per person, or for each class separately at $30 per class. Class size is limited to 15 people. Sessions start at 7 p.m.
Fall classes include: • Sept. 25: “Best Cheeses in
America.” Attendees will taste five award-winning cheeses from around the country, learn their stories, and get the opportunity to purchase some of each.
Cheese Geek, Cheese Guru to hold classes • Oct. 4: “Ocktoberfest, Wisconsin
Style.” Attendees will taste four Wiscon-sin craft beers paired with four Wisconsin artisan cheeses, hearing the behind-the-scenes-stories of each beer and cheese.
• Nov. 14: “European vs. Wisconsin Cheeses.” Attendees will judge how Wisconsin cheesemakers measure up to world-class cheeses. Attendees will taste eight cheeses, four European and four Wisconsin, hearing the stories of each, with the opportunity to purchase each at evening’s end.
All seats must be reserved in ad-vance. For more information, visit www.wicheeseclass.com or contact Carpenter at 608-358-7837 or [email protected]. CMN
WMMB releases locations of 2012 Expo networking into one day. There are so many resources at WMMB that Wisconsin cheese companies and Wisconsin cheese marketers can take advantage of. Our goal with the WMMB Expo is to make sure they’re aware of what programs are available to them,” says Stan Woodworth, WMMB senior vice president of channel management. “They will have the oppor-tunity to meet face-to-face with WMMB personnel who can help them tap into our program resources.”
Those interested can register online at www.wmmb.com/expo. For more in-formation about the 2012 WMMB Expo, contact Cathy Hart at [email protected], or Matt Mathison at [email protected] or call 800.373.9662. CMN
WASHINGTON — Grocery Manufactur-ers Association (GMA) and the Food Marketing Institute (FMI) will hold its 2012 Trading Partner Alliance Sustain-ability Summit here Oct. 3-5.
The event will feature numerous guest speakers, including: Walter Scheib, former White House chef, Bob Willard, consultant and author, Sally Uren, deputy CEO of Forum for the Future, and John Phillips, senior vice president of customer supply chain and logistics for PepsiCo Inc.
For more information, visit www.tpasustainabilitysummit.org. CMN
NEDFA conference set for Sept. 23-25
GMA, FMI summit to be held Oct. 3-5
EVENTS
Reprinted with permission from the Aug. 17, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Aug. 17, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the Aug. 17, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
10 CHEESE MARKET NEWS® — August 17, 2012
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PEOPLE
Comings and goings … comings and goings
Dr. Hasmukh Patel has joined the dairy science department at South Dakota State University as assistant professor in dairy manu-facturing. Patel brings more than 15 years of international experience in research, new product develop-ment and processing and quality as-surance of dairy and food products. Patel spent 10 years as a research scientist at the Fonterra Research Centre in New Zealand, where he was involved in research of new technologies and development of value-added dairy ingredients with novel functional properties and nu-tritional benefits.
Logan Worden, 19, of Oelwein, Iowa, was crowned Iowa Dairy Prin-cess at the Iowa State Fair Aug. 8. Worden represented the state’s Brown Swiss breeders in the contest and was named winner of the pre-sentation category. She is a sopho-more at Iowa State University study-ing dairy science and agricultural business.
Dr. May Shana’a has been named group vice president of technology and growth strategy for Ashland Specialty Ingredients. She will be responsible for leading Ashland Specialty Ingredi-ents’ global research and development and applications capabilities, with di-rect operational responsibility for the unit’s global research and technical
centers. Shana’a most recently served as global vice president of skin care and portfolio management at Johnson & Johnson Co.
ESE Inc., Marshfield, Wis., has named Peter Mancuso its director of engineering. He will be responsible for managing ESE’s engineers and will oversee the design and docu-mentation of ESE’s process controls automation projects. Mancuso joins ESE with more than 25 years of expe-rience in the engineering field, most recently as director of engineering at Generac Power Systems and previ-ously as the chief engineer and opera-tions manager at Simbonics Technol-ogy Inc.
California Dairies Inc., Visalia, Calif., recently announced the appoint-ment of David Treiber as senior vice president of fluid business develop-ment effective Sept. 1. He will manage all fluid, condensed and cream sales in the new role. Since 1999, Treiber has been vice president and division man-ager of food ingredients at Challenge Dairy Products.
D.D. Williamson (DDW), Louis-ville, Ky., has announced that Greg Kreder has been promoted to director of global quality. Prior to joining DDW’s science and innovation team four years ago, Kreder spent nearly two decades in research and product development for a global brewing company. CMN
Dan Carter honored by NASFT as ‘pioneer’WASHINGTON — Dan Carter, founder and chairman of Wisconsin’s Dairy Busi-ness Innovation Center (DBIC), has been honored by the National Associa-tion for Specialty Food Trade (NASFT) as a pioneer in the specialty food industry.
During a June 16 welcome reception for the Summer Fancy Food Show in Washington, D.C., Carter was honored as a pioneer of the specialty food indus-try in an exhibit titled “A Visual Feast: Celebrating 60 years of NASFT and the Specialty Food Industry.”
The exhibit recognized 60 entities that had furthered the image of specialty foods. Carter was honored as one of 12 pioneers, which also included Julia Child, Alice Waters, Ari Weinzweig and Paul Saginaw.
Carter was recognized as “a promot-er and educator of American specialty cheeses who helped bring attention to many of the country’s small farmstead and artisan creameries.”
The exhibit can be viewed on-line at www.avisualfeast.specialty food.com/home. CMN
NEWS/BUSINESS
and 85 percent of WMMB’s Pinterest traffic in turn goes back to its website.
“Through Pinterest, we have been able to really increase brand aware-ness, personality and increase traffic to our websites and microsites,” Porter Engwall says. “Pinterest is leading our referrals over Facebook. It’s the lead-ing talked-about social media. It’s just another avenue to connect to consumers who are interested in learning more about Wisconsin Cheese.”
The California Milk Advisory Board (CMAB) also expanded its social media campaigns to Pinterest early this year. Of its 27 boards currently on pinterest.com/realcalifmilk, the most popular themes include Latin flavors, a recipe collection board, “Milk + Cookies,” salads, soups, cheese, “Mac Loves Cheese,” grilled cheese and breakfast, says Jennifer Giambroni, director of communications, CMAB.
“Social media has become an in-creasingly important tool for the CMAB to market California milk and dairy products to consumers in an interactive way,” Giambroni says. “As Pinterest has grown to become the third-largest social media tool used by women (behind Facebook and Twitter), we needed to be there.”
In addition to its own content, CMAB also collaborates with its consumers and shares pictures and ideas from other sources on the Web. One example is a repinned image of a pineapple cream cheese spread, shaped like a pineapple and covered in halves to simulate the textured rind. The picture links back to a blog, “The Healthy Foodie,” which includes the recipe.
“We’ve discovered great pinners with really creative content using dairy and collaborated with some of our blogger friends to create boards,” Giambroni says.
Pinterest encourages this type of collaboration and says as simple as it sounds, best practices for using Pinter-est for brand purposes center around pinning like a regular user. Pinterest’s “Brand Best Practices” page suggests the following tips for setting up a branded Pinterest account:
• Pinning from various sources rather than one specific site;
• Repinning from within the site to engage with others — “Repinning is one of the most social activities on Pinterest, and it’s how any user really builds his/her network of followers,” Pinterest says.
• Creating at least a few boards that cover a broad range of interests, rather than maintaining a single board devoted to one topic.
Brands that have been successful on Pinterest often include boards that are less directly affiliated with that brand but still relate to the brand’s mission as well as its consumers’ lifestyle and interests.
“For brands, pinning can be a great way to highlight aspects of your brand that may not come to mind at first when people consider your brand,” Pinterest advises. “For instance, Whole Foods uses Pinterest to feature their work with their foundation. Pinterest can also be a great tool to learn what your audience/users/customers want and like. When The Travel Channel started their Pinterest account, they asked their Facebook users what boards they should create and what they should pin.”
Whole Foods Market, which has been on Pinterest since July 2011, has been cited by several business publications as one of the most successful brands on Pinterest. Its page, www.pinterest.com/wholefoods, has more than 57,700 followers, making Whole Foods the 16th most followed brand on Pinterest, according to social media influence tracker ZoomSphere.com.
Among Whole Foods’ 44 boards at pinterest.com/wholefoods are food-specific collections such as “Cheese is the Bee’s Knees” and “Plant Based Diet Recipes.” In addition, Whole Foods also maintains boards of peripheral interest such as one devoted to Aus-tin, Texas (home to the Whole Foods headquarters), one to gardening, and one to examples of unique architecture around the world.
Still among the newest forms of social media, Pinterest is slowly catch-ing on with brands in the cheese and dairy industry.
“Obviously state and regional dairy marketing organizations like ours are heavily using Pinterest, as are the bigger brands,” Giambroni says. “We’ve seen less participation from smaller proces-sors, but that will come as they discover the potential to showcase ideas, explain usage and engage with consumers.”
Tillamook Cheese is among the dairy brands that has joined Pinterest, and its pinterest.com/tillamook page has been up for about a year. Gillian Kennedy, Tillamook’s Internet communications manager, says Pinterest is unique in that it allows a brand to connect in an extremely “sticky” and viral way so that visual in-spiration is instantaneously shared and absorbed into new fans’ social identity.
“It is completely addictive for col-lecting recipe, entertaining and travel ideas,” Kennedy says. “For the Tillamook Pinterest followers, we try to provide a curated experience where they get to see inspirational recipes using all five Til-lamook product categories (cheese, ice cream, yogurt, sour cream and butter). In addition, we want to create a platform of readily available information for busy parents that is convenient and relevant.”
For example, on one of Tillamook’s boards Pinterest users can find recipes for Lobster Mac and Cheese and Sloppy Joe Grilled Cheese, and on the same screen they can flip through a Tillamook picnic tips and tricks inspired board.
“Our goal with Pinterest is to con-nect with fans that are using Tillamook in deliciously interesting ways and
PINTERESTContinued from page 1
Turn to SOCIAL, page 12 D
Reprinted with permission from the Aug. 17, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the Aug. 17, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
NEWS/BUSINESSAugust 17, 2012 — CHEESE MARKET NEWS® 11
BIDSContinued from page 8
For more information please visit www.wagcheese.com
Wisconsin Aging & Grading Cheese, Inc. also procured, aged, and graded:
2012 World Championship Cheese ContestBest in Class, 1-2 year old Cheddar - Land O’ Lakes - Kiel, WI
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BELGIOIOSO BID — Susan Quarne, second from left, publisher of Cheese Market News, placed the winning bid on 10 pounds of Fresh Mozzarella with Prosciutto & Basil made by Ben Milquet, center, BelGioioso Cheese, Green Bay, Wis. The cheese sold for $105 per pound, or a total of $1,050. This year’s Blue Ribbon Cheese & Butter Auction raised $34,875 for student scholarships and dairy promotions at the Wisconsin State Fair. Also pictured, from left: Alice in Dairyland Rochelle Ripp; Brianna Ditzenberger, Green County Cheese Days ambassador; and Fairest of Fairs Richelle Kastenson.
Lot 10 — Cold Pack Cheese, Cheese Food: Phil Lindemann, Pine River Pre-Pack, Newton, made the 12 pounds of Aged Asiago Cold Pack purchased by Wisconsin Aging & Grading Cheese for $100 per pound, or a total of $1,200.
Lot 11 — Latin American Cheese: Brian Mundt, Mexican Cheese Produc-ers, Darlington, made the 16-pound Queso Fresco Wheel purchased by Chr. Hansen, Milwaukee, for $155 per pound, or a total of $2,480.
Lot 12 — Brick, Muenster: John (Randy) Pitman, Mill Creek Cheese, Arena, made the 12 pounds of Muenster purchased by R. Mueller Service & Equipment for $100 per pound, or a total of $1,200.
Lot 13 — Flavored Semi-Soft Cheese: Ben Milquet, BelGioioso Cheese, Green Bay, made the 10 pounds of Fresh Mozzarella with Prosciutto & Fresh Basil purchased by Cheese Market News, Middleton, Wis., for $105 per
pound, or a total of $1,050.Lot 14 — Smear Ripened Cheese:
Nathan Leopold, Chalet Cheese Co-op, Monroe, made the 10 pounds of Limburger purchased by R. Mueller Service & Equip-ment for $90 per pound, or a total of $900.
Lot 15 — Aged Cheddar: Roger Larson, Maple Leaf Cheese, Monroe, made the 27 pounds of English Hollow Cheddar purchased by Berenz Packag-ing, Menomonee Falls, Wis., for $60 per pound, or a total of $1,620.
Lot 16 — Reduced Fat or Lite Cheese: Steve Webster, Klondike Cheese Co., Monroe, made the 10 pounds of Reduced Fat Feta purchased by Ivarson for $55 per pound, or a total of $550.
Lot 17 — Open Class — Semi Soft Cheese: Matt Henze, Decatur Dairy, Brodhead, made the 10 pounds of Havarti purchased by Chr. Hansen for $120 per pound, or a total of $1,200.
Lot 18 — Colby, Monterey Jack: Ryan Sturdevant, Meister Cheese Co., Muscoda, made the 14 pounds of Colby Jack Longhorn purchased by Wisconsin Cheese Originals, Oregon, Wis., for $60
per pound, or a total of $840.Lot 19 — Open Class — Soft and
Spreadable Cheese: Linda Saurer, BelGioioso Cheese, made the 10 pounds of Burrata purchased by Cargill for $70 per pound, or a total of $700.
Lot 20 — Natural Goat Milk Cheese: Dave Small, Carr Valley Cheese, LaValle, made the 10 pounds of Ban-daged Billy purchased by Ivarson for $40 per pound, or a total of $400.
Lot 21 — Mozzarella: Terry Lens-mire, Agropur, Luxemburg, made the 13 pounds of Low Moisture Part-Skim Mozzarella purchased by Wisconsin Aging & Grading Cheese for $45 per pound, or a total of $585.
Lot 22 — Flavored Hard Cheese: Mike Matucheski, Sartori Co., Plymouth, made the 20 pounds of Cannella Bel-laVitano purchased by Riteway Trans-portation, Richfield, Wis., for $150 per
pound, or a total of $3,000.Lot 23 — Smoked Flavored Cheese:
Nelson Schrock, Salemville Cheese Co-op, Cambria, made the 12 pounds of Smokehaus Blue purchased by DCI Cheese Co. for $60 per pound, or a total of $720.
Lot 24 — Flavored Pepper Cheese: Steven Tollers, Burnett Dairy Co-op, Grantsburg, made the 10 pounds of String Cheese with Jalapeño & Haba-nero Peppers purchased by Dupont/Danisco, New Century, Kan., for $60 per pound, or total of $600.
Lot 25 — Feta: Terry Lensmire, Ag-ropur, Weyauwega, made the 13 pounds of Feta purchased by Chr. Hansen for $30 per pound, or a total of $390.
Lot 26 — Butter: Team Graf, Graf Creamery, Bonduel, made the 10 pounds of salted butter purchased by Ivarson for $105 per pound, or a total of $1,050. CMN
is still above what the futures market shows,” Dunn says. “Not only is the corn crop small, but the quality is bad as well.”
Bob Cropp, professor emeritus for the University of Wisconsin-Madison’s Cooperative Extension, says milk prices will only go higher for the remainder of the year.
“The Class III milk price could well average above $19 per hundredweight and the Class IV averaging above $17. The Class III price could even reach $20 this year,” Cropp says. “But with substantially higher feed costs, margins will still be tight, especially for those producers in need of purchasing grain and forages.”• International outlook
On the heels of higher U.S. dairy prod-uct prices, prices increased as expected this week following the latest auction on GlobalDairyTrade (GDT), Fonterra’s internet-based sales platform.
The trade weighted index was 7.8 percent higher Wednesday on GDT. Average prices for all commodities and the percent increase from the trading event Aug. 1 are as follows:
• Milk protein concentrate — US$5,351 per metric ton FAS ($2.4272 per pound), up 15.4 percent;
• Anhydrous milkfat — US$3,173 per metric ton FAS ($1.4392 per pound), up 14.0 percent;
• Buttermilk powder — US$2,668 per metric ton FAS ($1.2102 per pound), up 10.2 percent;
• Cheddar — US$3,401 per metric ton FAS ($1.5427 per pound), up 8.8 percent;
• Skim milk powder — US$3,023 per metric ton FAS ($1.3712 per pound), up 7.3 percent;
• Whole milk powder — US$2,870 per metric ton FAS ($1.3018 per pound),
up 7.0 percent; and• Rennet casein — US$7,100 per
metric ton FAS ($3.2205 per pound), up 4.7 percent.
Even with higher prices in New Zealand, U.S. dairy products still are at a premium to those price levels, Dorland notes.
“Our prices and world prices need to reconcile,” she says. “Either world prices will have to move up, or we’ll ease in price, and I think the latter is more likely.”
She adds that the higher U.S. prices compared to those in Oceania and Europe may erode some of the United States’ positive demand picture. In
PRICESContinued from page 1
Turn to DEMAND, page 12 D
Reprinted with permission from the Aug. 17, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Aug. 17, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com
12 CHEESE MARKET NEWS® — August 17, 2012
NEWS/BUSINESSSOCIALContinued from page 10
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MAC BOARD — The Wisconsin Milk Marketing Board’s “Heavenly Mac & Cheese” Pinterest board includes several pictures and recipes from its January “30 Days 30 Ways” collaboration with bloggers to create 30 different recipes for macaroni and cheese.
ultimately provide content that adds value to our fans’ lives,” Kennedy says.
As consumers increasingly use blogs and sites like Pinterest to search for recipes and food inspiration, Pinterest has become an outreach tool for promo-tions and contests. Giambroni says CMAB looks forward to more collaborations with the food community on future boards and doing some contesting via Pinterest.
Tillamook increasingly has been integrating Pinterest into its online campaigns, both as a contest entry vehicle and to help generate awareness and traf-fic. A Tillamook contest held in honor of Mother’s Day earlier this year was its first
contest to leverage Pinterest. Fans could submit entries in various ways, including “pinning” their entries on Pinterest and using a hashtag to help Tillamook find it. Tillamook also recently pinned its new online education tool on natural vs. processed cheese, which offers a coupon for fans at the end of the experience.
Kennedy says Tillamook uses Pin-terest to help make its marketing as seamless as possible and strike up conversation with its consumers where they already are spending time.
“All of our marketing channels, tra-ditional and new media, have the same audience, but it’s great because we’re talking to the same consumers through multiple touch points,” Kennedy says. “It’s omni-channel marketing where you could see a Tillamook commercial on TV, be searching for a new Tillamook recipe from a friend’s Pinterest, then you can go to a grocery store and find the Loaf Love Tour. Consumers don’t think about whether or not they are on a traditional marketing channel or a new media channel — they are just going through their daily routine and are influenced by what’s available to them.”
As the Web becomes more and more important for brand engagement, Por-ter Engwall says it will be important for WMMB to use social media such as Pinterest and Facebook to connect with its audience.
“We look at all these tactics as a big spi-der web,” Porter Engwall says. “The more we can connect with promotions, the more we can use Facebook, Twitter and Pinter-est, this enhances the number of people who see it, pin it and share it.” CMN
particular, butter imports may pick up.Looking at GDT vs. U.S. butterfat, the
difference in price suggests that U.S. buyers can import anhydrous milkfat from other regions more cost-effectively than buying domestic butterfat, she says.
Cropp also notes that with sharply higher U.S. dairy product prices com-pared to world prices, exports for the remainder of the year are likely to slow.
Dairy Market News on Thursday said that “uncertainty of U.S. participation in international dairy markets is poten-tially causing some international buyers to seek upcoming needs earlier than usual from sources that currently have product available or will have product within the near future.”
Analysts also are looking ahead to the release of USDA’s latest milk produc-tion report this afternoon, anticipating lower levels for both milk production and cow numbers.
Dorland says she anticipates a “double hit” in both projected milk production levels and milk per cow.
“I think what’s been ticking us along is production per cow, but with the condi-tions we’re seeing, I think we’ll see those numbers come down,” she says. CMN
DEMANDContinued from page 11
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