Volume 32 Scan this code for breaking news and the latest markets! INSIDE Guest column: ‘An interview with Jim Sartori.’ For details, see page 4. Hilmar in planning for administrative building. For details, see page 8. Restaurant Performance Index rises to highest level in nearly six years. For details, see page 11. Dairy Research Institute highlights 2011 findings that help support role of dairy in health. For details, see page 15. February 3, 2012 Number 2 Packaging, fresh, natural add healthy image to dairy products By Rena Archwamety MADISON, Wis. — Marketing toward nutrition, health and natural ingredients is becoming increasingly visible in grocery aisles. Cereals that claim to help lower cholesterol, heart-healthy mixed nuts and yogurt products with probiotics for good digestion are a few of the many products looking to catch the health-conscious consumer’s attention. “It’s a very noisy environment. Companies have tried to identify specific attributes they think might be most important to consumers and most differentiating to themselves,” says Brian Wansink, John Dyson Professor of Consumer Behavior at Bel Brands USA to construct new plant in Brookings, S.D. CHICAGO — Bel Brands USA, headquartered here, this week announced plans to build a new 170,000-square-foot manufacturing facility in Brookings, S.D., to produce its Mini Babybel cheese. “The robust South Dakota dairy industry and its hard-working Midwestern values make Brookings an ideal location for our new plant,” says Lance Chambers, president and CEO, Bel Brands USA. “Bel Brands has experienced significant growth over the past few years, and this new plant is essential to expanding our production capacity to meet the growing demand for our Mini Babybel cheeses.” Bel Brands manufactures and markets The Laughing Cow cheese wedges and Mini Babybel as well as Boursin, Merkts, Kaukauna and other natural cheese spreads. The U.S. subsidiary of Paris-based Fromageries Bel currently has two other production facilities in the United States, located in Leitchfield, Ky., and Little Chute, Wis. Chambers notes that Bel Brands USA has more than doubled its size over the last four years, with three of the company’s key brands — Mini Babybel, The Laughing Cow and Boursin — fueling much of the growth. The company will invest approximately $100 million to build its new manufacturing plant on a 48-acre parcel of land along 32nd Avenue near the I-29 corridor in Brookings, S.D. Plant construction is planned in two phases. Bel Brands USA will break ground on the first phase this summer and expects to hire around 200 employees when the first phase becomes completely operational by 2014. Phase 1 will have a production capacity of approximately 22 million pounds. The second phase of the plant, which is contingent on anticipated increased market demands, is expected to be built in 2016-2017 and will bring another 200 jobs to the area. “I am thrilled to welcome Bel Brands to South Dakota,” says state Gov. Dennis Daugaard. “The impact of this project goes beyond the Turn to BEL BRANDS, page 16 Cornell University and author of the books Marketing Nutrition and Mindless Eating: Why We Eat More Than We Think. Many people appear to be tuned-in to these messages. According to the Hartman Group research and consulting firm, health and wellness is top-ofmind for consumers, with 92 percent saying that healthy eating is important. The time is now for the dairy industry to share dairy’s health benefits with consumers, according to Carol Blindauer, senior vice president of health and wellness at the Innovation Center for U.S. Dairy, an organization managed by Dairy Management Inc. (DMI) on behalf of dairy farmers to grow sales for dairy. “Interest in health and wellness is growing. This is a great opportunity for the dairy industry to take advantage of dairy’s inherent benefits,” Blindauer says. “There’s a lot of buzz on health, wellness and nutrition in other categories. We need to make sure dairy products do the same.” s"EYONDCALCIUM Consumers long have perceived milk and dairy products as a good source of calcium, but their understanding of the other health benefits of dairy is not as strong. Blindauer cites an internal study from 2009 that asked 1,000 U.S. adults age 18 and over to list nutrients that can be found in dairy products such as cheese, milk or yogurt. More than 60 percent were aware of the calcium content in dairy products, but less than 20 percent knew that milk, cheese and yogurt are good sources of protein. The number of those who were aware of other nutrients in dairy was even lower. “Consumers understand dairy is an important source of calcium, and calcium helps bone health,” says Gregory Miller, president of the Dairy Research Institute, DMI’s partner in providing technical research. “Now we have to help them understand it’s so much more.” The dairy industry needs to continue to own and advertise the benefits of calcium, but also make consumers aware of dairy’s other nutrients, Blindauer says. “There is a growing consumer interest in getting more nutrients per calorie, and that milk has nine essential nutrients is new news to most consumers,” she says. “A lot of other products have to fortify; we have many of these naturally.” When the Innovation Center for U.S. Dairy talks about leading with health messages in nutrition, Blindauer says the two main areas of focus that have received most interest from industry members are the protein found in dairy products and emphasizing “fresh and natural.” She notes 54 percent of consumers are trying to add more protein to their diets, according to the NPD Group’s Dieting Monitor Service. But while people are eating more protein, most of that increase currently is not coming from dairy. “There’s an opportunity to make people aware of protein in dairy foods, and how it can meet their needs,” she says, adding that this message can appeal to both the aging baby boomer population looking to slow muscle loss as they age and athletes looking to build and recover muscle. “It’s a great story for milk, cheese and yogurt to continue to re-frame.” A few examples already exist in the marketplace where companies are starting to call out the protein content of dairy products, some on the Turn to NUTRITION, page 14 Total U.S. cheese production climbs 1.7 percent in 2011 CBO releases long-term budget, economic outlook WASHINGTON — Total U.S. cheese production in December, excluding cottage cheese, was 929.5 million pounds, a 2.4-percent increase over December 2010’s 908.0 million pounds, according to preliminary data released Wednesday by USDA’s National Agricultural Statistics Service (NASS). (All figures are rounded. Please see CMN’s Dairy Production chart on page 12.) December 2011 cheese production was up 0.9 percent, on an average daily basis, from the 891.8 million pounds produced in November 2011, according to the report. The preliminary numbers from NASS put 2011 U.S. cheese production at 10.61 billion pounds, an increase of 1.7 percent compared to 2010 total cheese production. USDA will release revised data later this year. In December, Italian-type production topped 400 million pounds, up WASHINGTON — Early this week, the Congressional Budget Office (CBO) released “The Budget and Economic Outlook: Fiscal Years 2012 to 2022,” projecting a $1.1 trillion budget deficit for fiscal year 2012 if current laws remain unchanged. CBO prepares the baseline projections each January, and they span the next Turn to NASS, page 12 Turn to CBO, page 12 Reprinted with permission from the Feb. 3, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 2 CHEESE MARKET NEWS® — February 3, 2012 MARKET INDICATORS Chicago Mercantile Exchange CHEESE FUTURES for the week ended February 2, 2012 Cash prices for the week ended February 3, 2012 Tuesday Jan. 31 $1.4950 NC $1.4950 NC $1.4900 -1/2 $1.4875 -1/4 $1.4950 +3/4 Cheese 40-lb. block Price $1.5100 Change NC $1.5100 NC $1.4925 -1 3/4 $1.4850 -3/4 $1.4850 NC Cheese Barrels Price Change Wednesday Thursday Feb. 1 Feb. 2 (Listings for each day by month, settling price and open interest) Monday Jan. 30 Friday Feb. 3 Weekly average (Jan. 30-Feb. 3): Barrels: $1.4925(+.0055); 40-lb. Blocks: $1.4965(-.0095). Weekly ave. one year ago (Jan. 31-Feb. 4, 2011): Barrels: $1.7410; 40-lb. Blocks: $1.7785. Extra Grade NDM Price Change $1.4800 NC $1.3600 -12 $1.3500 -1 $1.3375 -1 1/4 $1.2975 -4 Grade A NDM Price Change $1.3800 -7 $1.3800 NC $1.3700 -1 $1.3575 -1 1/4 $1.3575 NC Fri., Jan. 27 JAN12 FEB12 MAR12 APR12 MAY12 JUN12 JUL12 AUG12 SEP12 OCT12 NOV12 DEC12 $1.5050 -4 1/2 $1.4925 -1/4 $1.4950 -1 $1.5050 NC $1.4925 NC Weekly average (Jan. 30-Feb. 3): Grade AA: $1.4980(-.0600). Class II Cream (Major Northeast Cities): $1.7138(-.0242)–$1.8696(-.0580). Sign up for our daily fax or e-mail service for just $104 a year. Call us at 608-288-9090. Weekly Cold Storage Holdings Butter Cheese On hand Monday Week Change 6,632 134,244 +771 -859 +5,121 -735 +339 -1 Last Year Pounds Change 4,438 127,232 CLASS III PRICE (Dollars per hundredweight, 3.5% butterfat test) YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 13.39 13.56 19.32 10.78 14.50 13.48 17.05 12.20 14.18 17.03 9.31 14.28 17.00 11.11 15.09 18.00 10.44 12.78 19.40 10.93 16.09 16.76 10.78 12.92 16.87 10.83 17.60 18.18 9.84 13.38 16.52 11.29 20.17 20.25 9.97 13.62 19.11 STAFF Susan Quarne, (PH 608/831-6002; FAX 608/831-1004) e-mail: squarne@cheesemarketnews.com Kate Sander, (PH 509/962-4026; FAX 509/962-4027) e-mail: ksander@cheesemarketnews.com Alyssa Sowerwine, (PH 608/288-9090; FAX 608/288-9093) e-mail: asowerwine@cheesemarketnews.com Rena Archwamety, (PH 608/288-9090; FAX 608/288-9093) e-mail: rena@cheesemarketnews.com Aaron Martin, (PH 608/288-9090; FAX 608/288-9093) e-mail: amartin@cheesemarketnews.com 10.92 21.38 18.24 9.97 13.74 21.39 11.06 19.83 17.32 11.20 15.18 21.67 12.29 20.07 16.28 12.11 16.26 19.07 12.84 19.22 15.51 14.08 15.44 19.07 13.47 20.60 15.28 14.98 13.83 18.77 SUBSCRIPTION INFORMATION 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. REGULAR CONTRIBUTORS John Umhoefer, Downes-O'Neill LLC, International Dairy Foods Association, National Milk Producers Federation SUBSCRIPTIONS & BUSINESS STAFF Subscription/advertising rates available upon request Contact: Susan Quarne - Publisher P.O. Box 628254, Middleton, WI 53562 #"! D* 12.32 18.70 17.06 12.82 16.94 18.03 Subscriptions: 1,106 1,131 1,200 924 734 542 399 378 347 294 239 264 1.612 1.559 1.585 1.630 1.670 1.702 1.735 1.750 1.751 1.740 1.731 1.725 58/7,558 1,106 1,137 1,197 927 721 544 402 380 348 296 242 267 94/7,567 Wed., Feb. 1 Thurs., Feb. 2 1.612 1,106 1.544 1,133 1.570 1,229 960 1.617 726 1.650 548 1.680 404 1.735 382 1.745 349 1.751 296 1.740 248 1.731 273 1.725 1.612 1,106 1.545 1,133 1.551 1,242 959 1.615 727 1.668 547 1.694 407 1.735 386 1.745 354 1.750 296 1.745 265 1.725 287 1.726 121/7,709 182/7,654 DRY WHEY FUTURES for the week ended February 2, 2012 (Listings for each day by month, settling price and open interest) Fri., Jan. 27 JAN12 FEB12 MAR12 APR12 MAY12 JUN12 JUL12 AUG12 SEP12 OCT12 NOV12 DEC12 69.33 70.50 65.50 58.00 53.88 52.00 48.50 48.50 48.00 48.00 47.50 47.50 437 425 449 326 276 231 149 171 163 127 118 116 Mon., Jan. 30 69.25 70.00 64.75 57.70 53.83 52.00 48.50 48.50 48.00 48.00 47.50 47.50 437 426 454 320 277 231 150 170 161 127 118 117 46/2,988 Tues., Jan. 31 69.25 69.75 64.50 56.95 53.83 51.93 48.75 48.53 48.25 48.00 47.50 47.50 438 425 458 318 277 231 152 170 162 127 118 117 70/2,993 Wed., Feb. 1 69.40 69.00 62.75 55.00 51.00 51.00 48.78 48.60 48.33 48.00 47.50 47.50 430 463 495 354 276 232 144 155 159 128 119 118 250/3,073 Thurs., Feb. 2 69.40 65.00 58.75 51.00 47.00 47.00 45.00 46.05 46.25 46.05 46.50 46.00 430 474 481 354 275 226 147 158 154 129 111 110 265/3,049 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. +2,194 +7,012 (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.) 2006 2007 2008 2009 2010 2011 2012 1.612 1.560 1.595 1.648 1.680 1.710 1.733 1.750 1.749 1.740 1.731 1.725 Tues., Jan. 31 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. Total Contracts Traded/ Open Interest 148/2,988 Jan. 30, 2012 Change since Jan. 1 Pounds Percent 1,106 1,131 1,199 910 732 538 399 378 347 294 239 264 Total Contracts Traded/ 35/7,537 Open Interest Weekly average (Jan. 30-Feb. 3): Extra Grade: $1.3650(-.1150); Grade A: $1.3690(-.0810). Grade AA Butter Price Change 1.612 1.562 1.600 1.650 1.685 1.700 1.733 1.750 1.749 1.740 1.731 1.725 Mon., Jan. 30 Cheddar Cheese and Dairy Product Prices For the week ended: Cheese 40-lb. Blocks: Average price1 Minn./Wis. Other states U.S. Sales volume2 Minn./Wis. Other states U.S. Cheese 500-lb. Barrels: Average price1 Minn./Wis. Other states U.S. Adj. price to 38% moisture Minn./Wis. Other states U.S. Sales volume2 Minn./Wis. Other states U.S. Moisture content Minn./Wis. Other states U.S. Butter: Average price1 U.S. Sales volume2 U.S. Nonfat Dry Milk: Average price1 U.S. Sales volume2 U.S. Dry Whey: Average price1 U.S. Sales volume2 U.S. 1/28/12 1/21/12 1/14/12 1/7/12 $1.6780 $1.5757 $1.5832 $1.6945 $1.5824 $1.5899 $1.6813 *$1.5695 *$1.5784 $1.6939 *$1.5670 *$1.5754 803,333 10,193,068 10,996,401 710,143 9,861,423 10,571,566 889,814 10,217,117 11,106,931 745,928 *10,531,401 *11,277,329 $1.6490 $1.6582 $1.6533 $1.6930 $1.6772 $1.6844 $1.6912 *$1.6796 *$1.6851 $1.6835 *$1.6754 *$1.6797 $1.5798 $1.5778 $1.5788 $1.6148 $1.5975 $1.6053 $1.6179 *$1.6017 *$1.6093 $1.6055 *$1.5965 *$1.6014 5,371,597 4,759,024 10,130,621 3,889,985 4,670,857 8,560,842 4,911,558 *5,500,583 *10,412,141 5,452,366 *4,688,963 *10,141,329 35.28% 34.84% 35.07% 35.00% 34.91% 34.95% 35.19% 34.99% 35.08% 34.99% *34.94% *34.97% $1.5897 3,885,001 $1.5923 6,386,835 $1.5828 6,927,814 $1.6015 3,670,407 $1.3936 22,583,767 $1.3654 27,125,986 $1.4149 *18,358,075 $1.4164 12,637,027 $.6753 11,154,013 $.7113 7,194,549 $.7021 7,986,805 $.6791 6,707,828 /Revised. 1/Prices weighted by volumes reported. 2/Sales as reported by participating manufacturers. Reported in pounds. More information is available by calling NASS at 202-690-2424. * WEBSITE: www.cheesemarketnews.com 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. Reprinted with permission from the Feb. 3, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com February 3, 2012 — CHEESE MARKET NEWS® NEWS/BUSINESS MARKET INDICATORS Intelligrated breaks ground on expansion -!3/./HIO— Intelligrated recently held a groundbreaking ceremony to kick off its new office construction project. The material handling solutions provider will relocate its administrative personnel into the new building to accommodate a planned expansion in engineering, customer service and research and development staffing and testing facilities. The construction project will accommo- date 450 associates and is scheduled for completion in October this year. The expansion is funded by an incentive package from the state of Ohio and the city of Mason to support local job growth. The package, valued at approximately $15 million, includes a combination of Intelligrated’s existing job creation tax credit, state and local government loans, property tax abatement and a state of Ohio grant. CMN California Minimum Prices Released Feb. 1, 2012 Butterfat Equivalent SNF $ 1.6613/lb. $ 1.1913/lb. $ 16.18/cwt. $ 1.6613/lb. $ 0.9673/lb. $ 14.23/cwt. Class 4a Class 4b International Dairy Markets Butter: 82 percent butterfat $4,225-$4,600(-25); 99 percent butterfat $4,750-$5,175. Skim Milk Powder: 1.25 percent butterfat $2,950-$3,125. Whole Milk Powder: 26 percent butterfat $3,625-$3,800. Whey Powder: Nonhygroscopic $1,275-$1,600(+100). Oceania Butter: 82 percent butterfat $3,700-$4,100(-100). Cheddar Cheese: 39 percent maximum moisture $3,775-$4,300(-200). Skim Milk Powder: 1.25 percent butterfat $3,275(+25)-$3,500. Whole Milk Powder: 26 percent butterfat $3,500-$3,700. * 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. CME FUTURES for the week ended February 2, 2012 January 2012 December 2011 $ 17.05/cwt. $ 11.44/cwt. $ 18.77/cwt. $ 13.12/cwt. $ 16.56/cwt. $ 10.93/cwt. $ 16.87/cwt. $ 11.16/cwt. $ 17.67/cwt. $ 1.7248/lb. $ 18.08/cwt. $ 1.7513/lb. $ $ $ $ $ 1.7178/lb. 1.2141/lb. 2.7326/lb. 0.5032/lb. 0.00080/1,000 scc $ $ $ $ $ 1.7443/lb. 1.2398/lb. 3.3404/lb. 0.4683/lb. 0.00090/1,000 scc $ $ $ $ 1.5900/lb. 1.3942/lb. 1.6097/lb. 0.6876/lb. $ $ $ $ 1.6119/lb. 1.4201/lb. 1.8070/lb. 0.6538/lb. Dry Products* February 3, 2012 NONFAT DRY MILK Central & East: low/medium heat $1.3500-$1.4500(-5); mostly $1.3800(-2)-$1.4350(-1 1/2). high heat $1.4850(-1/2)-$1.5450. West: low/medium heat $1.2800(-2)-$1.4100(-3 1/4); mostly $1.3350(-1 1/2)-$1.3750(-3 1/2). high heat $1.4000(-1)-$1.5100. Calif. manufacturing plants: extra grade/grade A weighted ave. $1.3779(+.0442) based on 15,187,647 lbs. Sales to CCC: 0 lbs. WHOLE MILK POWDER (National): $1.6800-$1.7800. EDIBLE LACTOSE (FOB)Central and West: $.7900-$.9950; mostly $.8200-$.9000. DRY WHEY Central: West: (FOB) Northeast: nonhygroscopic $.6900(-1/2)-$.7625; mostly $.6900(-1/2)-$.7200(-1/2). nonhygroscopic $.5300(-15)-$.7550; mostly $.6500(-4 1/2)-$.7300(-1). extra grade/grade A $.7000(-4)-$.7700. ANIMAL FEED (Central): Whey spray milk replacer $.5200-$.6925. WHEY PROTEIN CONCENTRATE (34 percent): $1.5000-$1.7200; mostly $1.5100-$1.5450. DRY BUTTERMILK (FOB)Central & East: $1.2700(+1)-$1.3650(-2 1/2). (FOB) West: $1.2300(-1)-$1.3700; mostly $1.2800(-2)-$1.3500(-1). CASEIN: Rennet $4.6000-$4.9000; Acid $4.8200(-13)-$5.1000. *Source: USDA’s Dairy Market News February 3, 2012 Western and Eastern Europe Class & Component Prices Class III: Price Skim Price Class IV: Price Skim Price Class II: Price Butterfat Price Component Prices: Butterfat Price Nonfat Solids Price Protein Price Other Solids Price Somatic Cell Adjustment Rate Product Price Averages: Butter Nonfat Dry Milk Cheese Dry Whey 3 Class III Milk#* JAN12 FEB12 MAR12 APR12 MAY12 JUN12 JUL12 AUG12 SEP12 OCT12 NOV12 DEC12 JAN13 FEB13 MAR13 APR13 MAY13 JUN13 JUL13 Fri., Jan. 27 Mon., Jan. 30 Tues., Jan. 31 17.10 16.64 16.72 16.79 16.86 17.00 17.14 17.25 17.24 17.10 17.10 17.05 16.90 16.50 16.48 16.40 16.40 16.40 16.40 17.10 16.68 16.70 16.63 16.68 16.96 17.10 17.20 17.26 17.10 17.03 16.98 16.90 16.50 16.48 16.40 16.40 16.40 16.40 17.09 16.52 16.56 16.50 16.57 16.83 17.12 17.15 17.20 17.09 16.96 16.98 16.81 16.45 16.48 16.40 16.40 16.40 16.40 4,309 5,366 5,495 3,274 2,931 2,482 1,817 1,856 1,748 1,482 1,401 1,387 107 39 31 18 12 10 4 Total Contracts Traded/ Open Interest 931/33,772 4,312 5,451 5,798 3,301 2,948 2,511 1,861 1,866 1,777 1,499 1,406 1,400 115 39 31 18 12 10 4 1,113/34,362 4,317 5,426 5,894 3,318 2,962 2,526 1,879 1,886 1,792 1,530 1,426 1,455 115 39 31 18 12 10 4 Wed., Feb. 1 17.10 16.35 16.25 16.18 16.43 16.66 16.96 17.08 17.15 17.06 16.93 16.95 16.80 16.45 16.46 16.40 16.40 16.40 16.40 4,320 5,410 5,937 3,426 2,997 2,541 1,926 1,922 1,865 1,570 1,479 1,484 115 43 33 18 12 10 4 1,765/35,115 1,122/34,643 Thurs., Feb. 2 17.09 16.15 15.82 15.89 16.37 16.66 16.95 17.05 17.09 17.01 16.80 16.80 16.75 16.50 16.46 16.40 16.40 16.40 16.40 4,329 5,478 5,857 3,533 3,028 2,579 1,947 1,936 1,876 1,601 1,495 1,495 117 46 33 18 12 10 4 1,810/35,397 Class IV Milk* Fri., Jan. 27 JAN12 FEB12 MAR12 APR12 MAY12 JUN12 JUL12 AUG12 SEP12 OCT12 16.65 16.34 16.35 16.52 16.60 16.68 16.85 16.94 16.95 16.95 327 333 320 256 224 193 56 53 49 52 Mon., Jan. 30 16.65 16.30 16.35 16.52 16.60 16.68 16.85 16.94 16.95 16.95 327 333 320 256 224 193 56 53 49 52 Total Contracts Traded/ 0/1,973 Open Interest 0/1,973 Fri., Jan. 27 Mon., Jan. 30 Tues., Jan. 31 327 333 320 256 224 193 56 53 49 52 16.65 16.30 16.35 16.52 16.60 16.68 16.85 16.94 16.95 16.95 Wed., Feb. 1 327 333 320 256 224 193 56 53 49 52 16.65 16.04 16.25 16.40 16.40 16.65 16.83 16.94 16.95 16.95 Thurs., Feb. 2 16.65 16.04 16.20 16.40 16.40 16.65 16.83 16.94 16.95 16.95 0/1,973 0/1,973 327 333 320 256 224 193 56 53 49 52 0/1,973 Cash-Settled NDM* JAN12 FEB12 MAR12 APR12 MAY12 JUN12 JUL12 AUG12 139.75 136.50 136.25 135.50 135.75 137.50 138.00 138.00 126 181 141 125 109 93 50 37 139.75 136.50 136.25 135.50 135.75 137.50 138.00 138.00 Total Contracts Traded/ Open Interest 17/938 126 181 141 125 109 93 50 37 Tues., Jan. 31 Wed., Feb. 1 139.75 136.50 136.25 135.50 135.75 137.50 138.00 138.00 139.75 135.75 135.00 134.50 134.50 136.50 137.50 138.00 0/938 126 181 141 125 109 93 50 37 126 181 143 139 118 94 50 46 Thurs., Feb. 2 139.75 135.75 135.00 134.50 134.50 137.00 138.00 138.00 124/979 0/938 126 217 147 143 118 111 52 46 26/1,043 Cash-Settled Butter* Fri., Jan. 27 JAN12 FEB12 MAR12 APR12 MAY12 JUN12 JUL12 AUG12 SEP12 OCT12 NOV12 158.00 152.75 157.00 159.25 159.75 160.03 162.00 164.00 166.50 168.00 169.00 626 663 777 511 369 356 267 298 265 236 203 Total Contracts Traded/ Open Interest 258/4,789 Mon., Jan. 30 158.20 151.50 156.25 158.00 158.75 159.75 161.50 163.50 166.00 167.00 168.00 626 661 779 513 387 371 277 308 285 252 219 200/4,911 Tues., Jan. 31 Wed., Feb. 1 158.20 151.50 156.25 158.00 158.75 160.00 161.50 163.65 166.00 167.00 168.50 158.20 150.75 155.00 158.25 158.75 160.00 162.00 164.00 166.00 167.00 168.50 626 662 776 524 390 371 277 308 285 252 219 45/4,923 626 656 776 527 384 379 284 321 287 252 224 130/4,949 Thurs., Feb. 2 158.20 148.50 153.50 157.50 159.00 160.00 163.00 164.75 166.50 167.00 168.50 626 648 778 532 400 394 291 327 291 252 234 88/5,006 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. #The total contracts traded for Class III milk includes electronically-traded contract volumes. *Total Contracts Traded/Open Interest reflect an additional month not included in this chart. 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. Reprinted with permission from the Feb. 3, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 4 CHEESE MARKET NEWS® — February 3, 2012 WCMA UPDATE Perspective: WCMA John Umhoefer is executive director of the Wisconsin Cheese Makers Association. He contributes this column monthly for Cheese Market News®. An interview with Jim Sartori Jim Sartori describes humility as a core value of his family’s cheese business, Sartori Company, based in Plymouth, Wis. But remaining humble is getting tough: SarVecchio Parmesan earned Best of Show honors at the 2009 U.S. Championship Cheese Contest, then First Runner Up in 2011, and the company’s Limited Edition Cognac BellaVitano recently took third overall in the 2011 World Cheese Awards. More than 100 awards and escalating sales for Sartori’s retail cheeses are the result of a quiet, humble company with an aggressive mission statement: “We want to make the best cheese in the world. It’s that simple,” Sartori explains. Jim recently discussed with WCMA his company’s transition into artisanal cheese and, in 2007, retail sales. It’s a story that embodies changes seen in Wisconsin’s cheese industry — a quality cheesemaker challenging itself to expand into value-added products, and address branding and marketing head-on to grow and thrive. “The catalyst for us was the acquisition of Antigo Cheese,” Sartori says. Sartori purchased the Antigo, Wis., plant in 2006, gaining skilled cheesemakers and a functional artisan cheese facility. “We knew the plant well — they always made great cheese. And the steps they had taken in the retail market were our first opportunity to move in that direction,” Sartori says. Antigo rounded out the company’s production capability needs, Sartori says, and joined the company’s flagship facility in Plymouth, Wis., and the Linden, Wis., blue cheese factory purchased in 2005. Along with Antigo, Sartori also purchased the hard Italian cheese factory in Blackfoot, Idaho, in 2006. “Now we have the capability and capacity to produce premium quality cheese for foodservice accounts across the country,” explains Sartori. Jim Sartori emphasizes (and emphasizes again) family, and the value of developing and executing ideas within the company. “When we’re working on new ideas, we bring to the table our culinary specialists and chefs, our master cheesemakers, food scientists, marketers and the leadership team,” Sartori says. “We have a very collaborative environment with ideas coming in from every member of the team.” The company doesn’t look to consultants for ideas or execution. “We’ve definitely staffed up,” Sartori says. “We have team members located all across the country, and we’ve really boosted our marketing team. We invest a lot of time and resources in training our team members and providing them growth opportunities.” In 2011, Sartori united its Parmesan, Romano, Asiago, Fontina, Gorgonzola and new originals BellaVitano and MontAmore under a new logo crest and impressive packaging. The marketing team developed the look of the distinctive retail cheese line. “The new labels really have differentiated our product in the cheese case and gave us a sales pop,” Sartori says. And while retail sales are strong, sales of Parmesan, Romano, Asiago and other cheeses for foodservice — Sartori’s long-term business — “are still our bread and butter,” Sartori says. He predicts, however, that the retail, branded cheeses will out-sell their established foodservice and natural cheese ingredient markets within three years. Foodservice was the market when Jim’s grandfather, Paolo Sartori, founded S&R Cheese with Lou Rossini in 1939 in Plymouth. The Italian cheese business grew under the leadership of Joe Sartori, Jim’s father. Jim admits that despite the company’s success, to many, Sartori is a new company, a new face in the supermarket. “We are truly an artisan company, focusing on making great cheese,” Sartori says. “We’re hand-making these cheeses, applying surface treatments by hand and curing our cheeses.” And Sartori is seeing the buzz, the consumer excitement, that artisan cheeses develop. “You should see the e-mails we receive and the comments on our Facebook page,” he says. “One woman wrote that she is driving 400 kilometers, from Canada into Michigan, to buy BellaVitano each month. We have people thanking our in-store samplers for making our cheeses. It’s fun, it’s exciting.” Cheese competition honors add to the buzz, Sartori says. “We look at these gold medals, these wins, as affirmation from experts and a very real source of pride for our team members here. It’s a thrill and an honor to have won over 100 awards in just the past few years. “Frankly,” Sartori says, “I’ve been surprised by the success we’ve had with these cheeses. We’ve definitely underestimated the volume of product we’ve needed.” Most cheeses in the retail line are aged from six months to two years, he noted, and all are cured and then handpackaged at a state-of-the-art facility built in Plymouth in 2008. Jim Sartori sees his company’s success to date as “the tip of the iceberg. We have a robust pipeline of new products to complement what we have. We have some extremely creative folks here, and we encourage our cheesemakers to spend time playing and experimenting. I think the culture is a key component to our success — creativity and collaboration,” he says. The Cognac-steeped BellaVitano that placed 3rd in the world at the 2011 World Cheese Awards is an example of a new Limited Edition line, Sartori says. The company has rolled out three lines at three price levels: Classic, Reserve and Limited Edition. “We’re not trying to create snobby cheeses,” Sartori says. “We want cheeses that appeal to every generation — kids and adults. One of our goals is to get great cheese on every plate — and help the category grow to its potential.” Sartori says the cheese, more than marketing, has earned Sartori shelf space. “We’re telling people — buyers, consumers — ‘just try the cheese.’ It all starts with having great product. Once they try the cheese, the rest comes naturally.” A national rollout of successful cheeses is a point of pride for Sartori, but he quickly deflects the compliment. “It’s like your own family. You never say ‘I’m proud of how I raised my kids,’ you say ‘I’m really proud of my children.’ I think we gave our cheesemakers the space to create, and our sales team the tools and support to sell it in. And I encourage all of our team members to spend a portion of their time experimenting, and thinking up new ideas.” And as company leader, Sartori says, “My job is to let our people know they’re on a firm foundation. Let them know we’re in it for the long haul.” Look closely at the family crest on the Sartori retail label. The four points on the crown represent four generations of the Sartori family. Jim’s son Bert is coming back to the business and his daughter Maria is completing graduate school. He insists his children earn a graduate degree and work outside the company before deciding to come back. And when they come back, Jim says, “I make sure they don’t work directly for me.” C M N The views expressed by CMN’s guest columnists are their own opinions and do not necessarily reflect those of Cheese Market News®. NEWS/BUSINESS Start-up cheese shop and café launches Internet funding campaign to raise $100,000 RIVER FALLS, Wis. — WeatherVane Creamery, a start-up specialty retail shop and café in downtown River Falls, Wis., recently launched an Internet campaign to raise $100,000 by Feb. 23. Facing the challenges of low capital and low collateral, owner Sarah Kowal says she decided to take financing her dream store into her own hands. With the help of friends and consulting experts, she produced a five-minute video explaining why people around the world should donate between $1 and $10,000 to help launch WeatherVane Creamery. The video is posted on the online funding platform IndieGoGo at www.indiegogo.com/ WeatherVane-Creamery-Rocks-This-Town. In the video, Kowal and friends show off River Falls and its appeal to those who call it home. Her fundraising site offers visitors the chance to contribute to the opening of WeatherVane Creamery no matter where they live. “What started out as an idea to open a coffee shop has evolved and expanded to become a celebration of all things I missed during my 10 years away from my home state,” Kowal says. “WeatherVane Creamery will be a Wisconsin-only specialty shop and café featuring farmstead, artisan and specialty cheeses, as well as organic, small batch churned scooped ice cream, gourmet sandwiches and other unique items. It will celebrate all things Wisconsin.” Kowal says part of WeatherVane Creamery’s mission is to provide the community with a local business that is “smart and quirky.” She describes the shop as an “iconic Wisconsin destination store that successfully combines and appeals to traditional sensibilities with a hip and modern feel.” If successful, Kowal says she aims to open WeatherVane Creamery on April 1, just in time for National Grilled Cheese Day on April 12. For more information, contact Kowal at 715-256-7050. CMN Reprinted with permission from the Feb. 3, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com February 3, 2012 — CHEESE MARKET NEWS® 5 NEWS/BUSINESS Dairy industry joins other organizations in comments to FDA on approaches to sodium reduction WASHINGTON — The International Dairy Foods Association (IDFA), Leprino Foods Co. and the Institute of Food Technologists (IFT) were among several groups that recently submitted comments to FDA on approaches to reducing sodium consumption in the U.S. population. FDA and the Food Safety and Inspection Service have been gathering data and comments regarding dietary intake of sodium and practices by industry to reduce sodium in foods. The agencies are considering ways to promote “gradual, achievable and sustainable reduction of sodium intake over time.” In its comments, IDFA notes that cheese is a nutrient-dense food that provides only 7.8 percent of the sodium in the U.S. food supply. IDFA reinforces the nutrient-rich role of cheese, highlighting the significant levels of calcium, phosphorus, protein and vitamin A that it provides to the American diet. “Since salt and sodium serve so many functional purposes in cheese, it can be difficult to successfully reduce the levels of sodium in cheeses,” IDFA says. “However, the cheese industry has undertaken significant work, both by individual companies and as a coalition of the entire industry, to identify and implement approaches to lower sodium in both natural and processed cheeses.” IDFA adds that because not all reductions reach the level of 25 percent or more currently required for products to use the “sodium reduced” nutrient content claim, IDFA believes these regulations should be changed to allow more products to carry this claim, as products with smaller reductions might gain better acceptance from consumers. “Reductions at lower levels, such as 10 percent less sodium, would add up across the total diet and could have a significant impact on the overall sodium content of the American diet,” IDFA says. In its comments, Leprino Foods Co. notes that the company is focused on creating healthful products for consumers and understands the importance of sodium reduction within the American diet. “We are proud of the role that Mozzarella cheese plays in the American diet, particularly within the National School Lunch Program, and are in- terested in contributing to efforts to improve the health of our consumers,” Leprino Foods says. The company notes that according to industry and internal research, sodium reduction beyond certain limits leads to declining consumer acceptance of cheeses, so while sodium reduction can be achieved in cheese, it must be done at levels that do not cause deterioration in consumer acceptance and purchase behaviors. “Given the outcome of this research, we believe that sodium reduction must be completed in gradual steps to allow the American palate to adjust,” Leprino Foods says. “It also must be achieved without compromising food safety or the consumption of nutrientdense foods that are key to providing nutrients that are deficient in the American diet. “While we and other food manufacturers have made progress in the development of reduced-sodium products, further research and development will continue to evolve,” the company adds. “Therefore, voluntary sodium reduction programs will allow manufacturers to complete meaningful research and development to create quality products with sustainable reduced-sodium levels.” Leprino Foods also notes that a severe reduction in sodium levels is likely to result in consumers adjusting their eating habits away from those foods that have been significantly reformulated. IFT in its comments notes that there is an ongoing need to build on the nation’s understanding of what is feasible and safe for establishing voluntary sodium reductions in key food categories. IFT says that while focusing on sodium reduction, food scientists and technologists must be supported to pursue comprehensive ways to improve nutrient-dense foods and beverages at affordable prices. In addition, any monitoring programs and evaluation processes must integrate the expertise and experience of food scientists and food technologists, while also strengthening the ability of sodium-reduction data, IFT adds. “Evidence suggests that gradual, step-wise reductions in our food supply will have the most success on shortand long-term consumer acceptance of lower-sodium foods,” IFT says. CMN FDA takes action against N.Y. cheese manufacturer with history of Listeria contamination WOODHAVEN, N.Y. — The FDA has asked a federal court to prevent a New York cheese manufacturer from operating because of a history of unsanitary conditions and producing cheese in a facility contaminated with Listeria monocytogenes bacteria. According to a request for a permanent injunction filed by the U.S. Department of Justice, Mexicali Cheese Corp., Woodhaven, N.Y., and two of its officers, Edinson Vergara and Claudia Marin, produced cheese under persistent unsanitary conditions that contributed to widespread Listeria monocytogenes contamina- tion in the facility. In addition, the FDA complaint, filed Jan. 30 in U.S. District Court for the Eastern District of New York, says that the New York State Department of Agriculture & Markets Division of Milk Control and Dairy Services found similar unsanitary conditions in addition to product contamination. “FDA filed this complaint to protect the health of consumers,” says Dara Corrigan, associate commissioner for regulatory affairs, FDA. “Working closely with New York’s Department of Agriculture and Markets, we took this step to ensure that consumers do not eat potentially Governors wager Greek yogurt, cheesecake, bagels, clam chowder in Super Bowl bet INDIANAPOLIS — The stakes are already high in Super Bowl XLVI on Feb. 3, but New York Gov. Andrew Coumo has raised the ante by including 46 cases of Greek yogurt in a wager that the New York Giants will defeat the New England Patriots. Coumo and Massachusetts Gov. Deval Patrick have agreed to wager foods produced in their home states on the outcome of the Super Bowl. If Coumo loses the bet, he will send 46 cases of Greek yogurt, 46 dozen frozen bagels and 46 cheesecakes to Massachusetts. If Patrick loses the bet, he will send 46 pies, clam chowder and 46 cases of locally-produced potato chips to New York. A news release announcing the wager referred to Greek yogurt as one of New York’s “newest and hottest exports.” “I look forward to congratulating the Giants on winning their fourth Super Bowl title and seeing Gov. Patrick’s generous wager offerings go to a food bank here in New York,” says Coumo. The dairy industry was also represented in a Super Bowl wager last year between Wisconsin Gov. Scott Walker and Pennsylvania Gov. Tom Corbett. Walker wagered a block of cheese, a 3-pound chocolate football, mustard, wine, beer and bratwurst on a Green Bay Packers victory. For his part, Corbett wagered coffee, honey, maple syrup, wine, vodka and Heinz ketchup. CMN dangerous foods from this company.” Mexicali Cheese makes and distributes a variety of soft Mexican cheeses to grocery stores and supermarkets in New York, New Jersey and Connecticut. Mexicali Cheese’s products include queso fresco (fresh cheese), queso Oaxaca (Oaxacan cheese) and queso para fried (cheese for frying). If granted by the court, the injunction would stop the company and its officers from manufacturing and distributing food until they can bring their operations into full compliance with the Federal Food, Drug and Cosmetic Act and FDA food safety regulations. CMN CUTTING EQUIPMENT DEDICATED TO THE CHEESE & DAIRY INDUSTRIES FOR OVER FOUR DECADES! Johnson Industries offers one, two and three-way cutting machines to meet all of your various reduction needs. Our systems cut blocks into random or exact weight sizes for retail, foodservice and delis. Or, we can reduce blocks into cubes for shredding, grinding and melting for industrial use. Wheels, loaves and horns can also be cut using our cutting systems. UÊTwo-Hand Safety Feature UÊAdjustable Cutting Wires UÊElectric, Hydraulic or Pneumatic Powered UÊAll Stainless Steel Construction UÊEasy to Operate and Clean UÊMaintenance Friendly SERVICE U INNOVATION U DEDICATION Johnson Industries International Inc. © 6391 Lake Road, Windsor, WI 53598 *\Ê­Èän®Ên{È{{ÊUÊ8\Ê­Èän®Ên{ÈÇ£x EMAIL: info@johnsonindint.com WEB: www.johnsonindint.com Your Global Cheese Making and Processing Equipment Resource For more information please visit www.johnsonindint.com Reprinted with permission from the Feb. 3, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 6 CHEESE MARKET NEWS® — February 3, 2012 NEWS/BUSINESS Consumers advised to discard raw milk from Family Cow after campylobacteriosis outbreak CHAMBERSBURG, Pa. — A Pennsylvania raw milk provider has been linked to an outbreak of campylobacteriosis in two states. The Maryland Department of Health and Mental Hygiene (DHMH) Wednesday said its laboratories have confirmed the presence of Campylobacter jejuni in two unopened raw milk samples that were purchased from The Family Cow dairy in Chambersburg, Pa. To date, DHMH says there are 23 confirmed outbreak-related campylobacteriosis cases — four in Maryland and 19 in Pennsylvania — all of whom consumed raw milk from The Family Cow farm. The Pennsylvania Department of Health and the Maryland DHMH last week issued advisories for consumers to discard any product purchased from the farm since Jan. 1 after six campylobacteriosis cases were confirmed in people who had consumed raw milk from The Family Cow. The advisories continue, and the dairy has voluntarily suspended sales of its raw milk. Onset of illness usually occurs in two to five days after ingesting the bacteria, and Campylobacter is one of the most common causes of gastroenteritis, which can include diarrhea and vomiting. Patients often do not require specific medical treatment unless they Saputo issues warning on milk in Canada MONTREAL — Saputo Inc. and the Canadian Food Inspection Agency (CFIA) recently warned the public not to consume Neilson Trutaste 2-percent Micofiltered Partly Skimmed Milk sold in 4-liter bags with a best-before date of Feb. 12, 2012, because it may contain a cleaning solution. The affected product contains the UPC 066800 00404 4 and best-before code 1590 FE12 H7. No other codes are affected. The product was distributed in On- tario and in Aylmer, Quebec. There has been one reported reaction associated with the consumption of this product. CFIA says milk containing this cleaning solution may not look or smell spoiled. Consumption of this product may cause symptoms such as nausea, upset stomach or vomiting. Saputo Inc. is voluntarily recalling the affected product from the marketplace, and CFIA is monitoring the effectiveness of the recall. CMN become severely dehydrated or the infection spreads from the intestines. The packaged raw milk is sold under The Family Cow label in plastic gallon, half gallon, quart and pint containers and labeled as “raw milk.” The Family Cow sells directly to consumers in an on-farm retail store and at drop-off locations and retail stores in Bucks, Cumberland, Dauphin, Delaware, Franklin, Lebanon, Montgomery, Philadelphia and York counties in Pennsylvania. Raw milk sales are legal in Pennsylvania. Maryland state law prohibits the sale of unpasteurized milk. Earlier this week The Family Cow announced on its website that pathogen tests on bottling samples it sent to QC Laboratories in Southampton, Pa., came back 100 percent pathogen-free. However, the dairy said it was still waiting for the tests and evaluation of the Pennsylvania departments of health and agriculture. The Family Cow today sent an update to its customers confirming the Maryland DHMH findings, reiterating that customers should discard any of its raw milk with a January “best by” date and offering a full refund for the discarded milk. “If you are a family or person that was made ill by the bad milk and have not contacted us yet, please do,” says owner Edwin Shank. “Our whole family and farm team is praying fervently for your speedy recovery.” CMN CMAB plans Super Bowl XLVI commercial SAN FRANCISCO — The third installment of the California Milk Advisory Board’s (CMAB) “Make Us Part of Your Family” advertising campaign will air during Super Bowl XLVI on Feb. 5. The first two installments of the campaign feature California cows, and the products they represent, as trusted members of the family — giving advice and fashion tips. “‘Make Us Part of Your Family’ combines the fun of our previous ad- vertising with the families at the core of California’s dairy business. Ninetynine percent of California dairy farms are family owned, and California dairy products are a trusted, important part of family meals,” says Michael Freeman, vice president of advertising, CMAB. “This campaign gives us a chance to highlight both in an entertaining way.” In the upcoming ad, a California cow will attempt to win the Super Bowl MVP trophy, says CMAB. CMN PEOPLE Obituary Daniel Rackley -53+/'%% /KLA — Daniel F. Rackley, a former director of the Milk Program for the State of Oklahoma and board chairman of the National Conference on Intestate Milk Shipments, died Jan. 29. He was 65. Born in Wilmington, N.C., Rackley was raised in Cyril, Okla., and graduated from Cyril High School in 1964. He studied at Oklahoma State University, graduating in 1970, and later attended a master’s program there. In 2001, Rackley retired as director of the Milk Program for the State of Oklahoma, and worked as director of regulatory affairs for Dean Foods until the time of his death. Rackley also served for many years as the chairman of the board for the National Conference on Interstate Milk Shipments (NCIMS). In that capacity, he worked with state governments, the FDA and industry to establish laws and guidelines for milk production. He is survived by his wife Vicki, son Andy, daughter Jennifer (Jeff) Phillips; mother-in-law Iva Cable, aunt Lois Camp and six grandchildren. A memorial service will be held at 10:30 a.m. Feb. 8 at the First United Methodist Church of Muskogee. CMN Comings and goings … comings and goings For more information please visit www.cheesemarketnews.com $AIRY&OOD53!)NC, Blue Mounds, Wis., has announced that *UDD"ATTERman, CPA, CMA, has been appointed vice president of administration by Daniel R. Culligan, president, Dairyfood USA. Batterman joined the firm in September 2008 as controller. He previously served as the assistant vice president of accounting for The Wisconsin Cheeseman for seven years. Batterman has also served as a director of human resources, plant manager, CPA consultant, and technical and community college business division instructor. He earned a master’s degree in business administration at the University of Wisconsin-Madison. Batterman is a member of the Institute of Management Accountants, a volunteer controller of the North/Eastside Senior Coalition in Madison, Wis., a Volunteer Treasurer for the Sun Prairie Youth Hockey Association and was a fighter pilot captain for the United States Air Force. CMN Reprinted with permission from the Feb. 3, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com February 3, 2012 — CHEESE MARKET NEWS® 7 For more information please visit www.rathgibson.com Reprinted with permission from the Feb. 3, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 8 CHEESE MARKET NEWS® — February 3, 2012 EVENTS Senate Ag Committee chair announces farm bill hearing schedule for February and March WASHINGTON — Sen. Debbie Stabenow, D-Mich., chair of the Senate Agriculture Committee, this week announced the committee’s farm bill hearing schedule for February and March, noting the committee will continue examining farm bill principles and evaluating policy solutions to develop a 2012 Farm Bill. The hearing dates and the topics to be discussed are as follows: s7EDNESDAY&EB4HISHEARING will evaluate policies that make investments in jobs and opportunities for farmers and rural businesses through new markets, entrepreneurship, regional strategies and energy innovation. s7EDNESDAY&EB4HISHEARING will explore the Conservation title’s investment in America — the nation’s fundamental resources of water, soils and other natural resource infrastructure — through policies that help farmers maintain soil health, keep water clean and available, food abundant and safe, and wildlife in tact to protect principles of farming. s7EDNESDAY-ARCH4HISHEARING will explore innovative opportunities in agriculture through policies that assist the development of local markets for farmers. s7EDNESDAY-ARCH4HISHEARing will evaluate the need for and cost effectiveness of risk management tools available to farmers who face increas- ingly volatile crop prices, input costs and the threat of natural disasters, as well as how the federal government can provide appropriate risk management tools while making the best use of limited resources. Witnesses, times and other hearing details will be announced. The hearings are available for viewing on the committee website at http://ag.senate.gov. CMN WSCI event targets business improvement WISCONSIN DELLS, Wis. — The Wisconsin Specialty Cheese Institute (WSCI) will host a meeting on business improvement and succession planning here at the Chula Vista Resort at 9:30 a.m. Feb. 17. Attendees will learn how to build sales using consumer insights in a presentation by Margaret Welke, director of MRD, Wisconsin Milk Marketing Board (WMMB), and Skip Selle, vice president of consumer & shopper marketing, Symphony IRI. The presentation will illustrate how Symphony IRI’s new ShopperSights Analysis identifies and quantifies high-value consumers, providing insights on everything from household items to which media outlets they use. It also will identify the top retail chains and most effective marketing vehicles. Another presentation will offer entrepreneurs insight on how to plan for transfer of ownership, including preparing a timetable, valuing your business, attracting buyers and maintaining confidentiality while taking your business to market. Michael Schwantes and Bob Wolter, Creative Business Services, and Cathy Durham, Capital Valuation Group, will present the information. The meeting also will include updates and resources from the Wisconsin Cheese Makers Association; Wisconsin Department of Agriculture, Trade and Consumer Protection; Dairy Business Innovation Center and WMMB. There is no charge to attend. To RSVP, contact Kathy Brown, WSCI, at kathy@planningoptionsince.com, or 866-740-2180. To learn more, visit www. wisspecialcheese.org. CMN Hilmar in planning for administrative building project For more information please visit www.adpi.org (),-!2#ALIF— Hilmar Cheese Co. is planning to build a new administration building at its corporate headquarters here. Hilmar still is in the permit process, so no time frame has been established, but the company is hoping to do groundbreaking for the project later this spring, according to Denise Skidmore, director of public relations, Hilmar Cheese. Construction has not yet started on the proposed administration building, and the new administration building will provide more room for existing staff. Skidmore says the company will be adding jobs in a second phase but says details on plans for that phase will not be available until the company’s current expansion is underway. Hilmar also has announced it currently is accepting applications for hourly production, salaried and maintenance staff at its Dalhart, Texas, facility. For more information, visit www.hilmarcheese.com. CMN Reprinted with permission from the Feb. 3, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com February 3, 2012 — CHEESE MARKET NEWS® 9 NEWS/BUSINESS CWT assists with 13.8 million pounds of butter, cheese exports for January-June DPA donation ARLINGTON, Va. —Cooperatives Working Together (CWT) has accepted 17 requests for export assistance from Bongards, Dairy Farmers of America, Darigold, Land O’Lakes, Upstate Niagara subsidiary O-At-Ka and United Dairymen of Arizona to sell a total of 1,288 metric tons (2.84 million pounds) of Cheddar, Monterey Jack and Gouda cheese and 4,969 metric tons (10.95 million pounds) of butter to customers in Asia, Europe, the Middle East and North Africa. The product will be delivered January through June 2012. After reviewing several market fundamentals, CWT determined that it should begin assisting member cooperatives in making sales of butter overseas. CWT’s strategic plan, approved by the CWT Committee last year, called for funds to be budgeted in 2012 for that purpose. So far in 2012, CWT has assisted member cooperatives in making export sales of Cheddar, Monterey Jack and Gouda totaling 13.2 million pounds and butter totaling just less than 11.0 million pounds to 12 countries on four continents. CWT will pay export bonuses to the bidders when delivery of the product is verified by the submission of the required documentation. CMN Photo courtesy of Harlen Persinger TAYLOR, Wis. — The Dairy Pricing Association (DPA), a cooperative of milk producers based in Taylor, Wis., recently donated 2,000 pounds of Cheddar to Second Harvest Foodbank of Southern Wisconsin during a ceremony held at Meister Dairy, Muscoda, Wis., on Jan. 26. This marks the third donation of dairy products by DPA to a Feeding America member since August 2011. DPA is a collection of dairy producers whose mission is to establish a minimum price that the dairy industry receives for its production, while at the same time maintaining a level of milk production to meet the needs of the consumer. The donation to Second Harvest included fifty 40-pound blocks of Cheddar. Volunteers are splitting the blocks of cheese into 2-pound, familysize portions that will be distributed through a network of partner agencies to thousands of individuals, families, children and seniors who struggle with hunger. Pictured, from left, are: Gary Ramthun, Second Harvest truck driver; Robin Berg, DPA president; Jim Scheuerman, food resource manager, Second Harvest; Tom Olson, DPA vice president; Vicky (Meister) Thingvold, co-owner of Meister Cheese; and Scott Meister, co-owner of Meister Cheese. CMN Appointment Announcement Robert Coallier, Chief Executive Officer Agropur’s Chairman, Serge Riendeau, is pleased to announce the appointment of Mr. Robert Coallier to the position of Chief Executive Officer. Mr. Coallier will officially be starting in his new role on February 27th, taking over on current CEO Mr. Pierre Claprood’s retirement. Robert Coallier holds a bachelor’s degree from McGill University as well as a MBA from Concordia University. With close to 30 years of management expertise in various sectors, including consumer products and retail, Mr. Coallier has also been active on many Boards of Directors for different businesses. For the last two years, he acted as a guest member on Agropur’s Board of Directors and its audit committee. Founded in 1938, Agropur cooperative is a Canadian dairy industry leader. With $3.6 billion in sales, the cooperative is a source of pride for its 3,349 dairy producer shareholders and 5,700 employees. Agropur processes over 6.9 billion pounds of milk annually across 27 plants in Canada, the United States – located in Iowa, Wisconsin, Michigan, and Minnesota - and Argentina, and offers an impressive array of products, including popular brands such as Schroeder, Sealtest, Natrel, Oka, Québon, Island Farms and Trega. Robert Coallier Chief Executive Officer Paid Advertisement For more information please visit www.agropur.com For more information please visit www.relco.net Reprinted with permission from the Feb. 3, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 10 CHEESE MARKET NEWS® — February 3, 2012 NEWS/BUSINESS Restaurant industry set to outpace national job growth, reach record sales in year ahead WASHINGTON — Despite sluggish recovery by the nation’s economy, the restaurant industry is projected to expand in 2012, according to the National Restaurant Association’s 2012 Restaurant Industry Forecast released this week. Total restaurant industry sales are expected to reach a record high of $632 billion in 2012 — a 3.5 percent increase over 2011, marking the second consecutive year that industry sales have topped $600 billion. In addition, the restaurant industry will continue to fuel U.S. employment in the year ahead as the nation’s second largest private sector employer, the National Restaurant Association says. Overall restaurant industry employ- ment will reach 12.9 million in 2012, representing 10 percent of the total U.S. workforce. “As our nation slowly recovers from the economic downturn, restaurants continue to be a vital part of American lifestyles and our nation’s economy,” says Dawn Sweeney, president and CEO, National Restaurant Association. “We expect the nation’s nearly 1 million restaurants to post sales of $632 billion this year. Combine that with the fact that restaurant job growth is expected to outpace the overall economy for the 13th straight year, and it’s clear that the restaurant industry is once again proving to be a significant economic stimulant and strong engine for job creation.” In 2011, total U.S. employment grew at a rate of 1.0 percent, while restaurants added jobs at a 1.9 percent rate. In 2012, the National Restaurant Association expects the restaurant industry to add jobs at a 2.3 percent rate, a full percentage point above the projected 1.3 percent gain in total U.S. employment. The industry is expected to gain back all of the jobs lost during the recession by early 2012. The overall economy isn’t expected to be back at pre-recession employment levels until 2014. Looking ahead, the association expects a jump in restaurant employment to 14.3 million individuals in the next decade — an increase of 1.4 million jobs. While the industry is expected to grow in 2012, there are still concerns. The top challenges cited by restaurateurs are food costs, building and maintaining sales volume, and the economy. “Because about one-third of sales in a restaurant go to food and beverage purchases, food prices are a crucial component for operators,” says Hudson Riehle, senior vice president of the National Restaurant Association’s Research and Knowledge Group. “Last year, we saw wholesale food prices post their strongest annual increase in more than three decades. In 2012, we will see continued increases in the cost of some commodities, while price pressures will ease for others.” However, opportunities also are present for operators to be successful by understanding and leveraging consumer trends to attract new guests and make current ones come back. There is substantial pent-up demand for restaurant services, with 2 out of 5 consumers saying they are not using restaurants as often as they would like, Turn to GROWTH, page 11 Entry deadline approaching for 2012 WCCC; check-in volunteers needed For more information please visit www.worldchampioncheese.org MADISON, Wis. — Entry forms and fees for cheese and butter entries in the 2012 World Championship Cheese Contest are due Feb. 8, 2012. Complete entry information, as well as the ability to securely enter and pay online, is available by visiting www.worldchampioncheese.org. Entrants can use “MyEntries” to enter on www.worldchampioncheese. org, a unique feature of the World Championship Cheese Contest. It allows users to enter the contest online, print shipping tags for entry shipment and instantly view contest scores. In addition, those who enter online with MyEntries can receive a $10 discount per entry. The 2012 World Championship Cheese Contest will be held March 5-7 at the Monona Terrace and Convention Center in Madison, Wis. The world’s largest technical evaluation of cheese and butter features 82 Contest classes. Product entries must be received at WOW Logistics in Little Chute, Wis., no later than Feb. 24. The Wisconsin Cheese Makers Association notes the contest is only possible with the generous support of an army of volunteers. Volunteers are needed to check in and sort cheeses at WOW Logistics warehouse in Little Chute on March 1-2. For more information or to volunteer, please visit the contest website, click the “volunteer” tab and complete the volunteer sign-up form. CMN Reprinted with permission from the Feb. 3, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com February 3, 2012 — CHEESE MARKET NEWS® 11 NEWS/BUSINESS Monthly Restaurant Performance Index rises to 102.2, highest level in nearly six years WASHINGTON — Fueled by solid same-store sales and traffic results and a bullish outlook among restaurant operators, the National Restaurant Association’s Restaurant Performance Index (RPI) rose sharply in December. The RPI — a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry — stood at 102.2 in December, up 1.6 percent from November and its highest level in nearly six years. In addition, December represented the third time in the last four months that the RPI stood above 100, which signifies expansion in the index of key industry indicators. “Aided by favorable weather conditions in many parts of the country, a solid majority of restaurant operators reported higher same-store sales and customer traffic levels in December,” says Hudson Riehle, senior vice president of the Research and Knowledge Group for the association. “In addition, restaurant operators are solidly optimistic about sales growth in the months ahead, and their outlook for the economy is at its strongest point in nearly a year. “Coupled with the solid November results, the RPI’s impressive December performance bodes well for continued positive industry momentum in the year ahead,” Riehle adds. The RPI is constructed so that the health of the restaurant industry is measured in relation to a steady-state level of 100. Index values above 100 indicate that key industry indicators are in a period of expansion, and index values below 100 represent a period of contraction for key industry indicators. The RPI consists of two components, the Current Situation Index and the Expectations Index. The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), stood at 102.1 in December — up 1.9 percent from November and the strongest level in seven years, the association says. December also represented the third time in the last four months that the Current Situation Index stood above 100, which signifies expansion in the current situation indicators. Building on a solid November performance that saw the strongest samestore sales results in more than four years, restaurant operators reported even better numbers in December. Sixty-nine percent of restaurant operators reported a same-store sales gain between December 2010 and December 2011, while only 18 percent reported a same-store sales decline. This marked the strongest net positive sales performance since February 2004, when 70 percent of operators reported a sales gain and 17 percent reported lower sales. Restaurant operators also reported solid customer traffic results in December. Fifty-seven percent of restaurant operators reported higher customer traffic levels between December 2010 and December 2011, while just 23 percent reported a traffic decline. In November, 41 percent of operators reported higher customer traffic, while 32 percent reported a traffic decline. In addition to positive sales and traffic levels, capital spending activity among restaurant operators continues to trend upward. Forty-eight percent of operators say they made a capital expenditure for equipment, expansion or remodeling during the last three months, the highest level in six months. The Expectations Index, which measures restaurant operators’ six-month outlook for four industry indicators (same-store sales, employees, capital expenditures and business conditions), stood at 102.3 in December — up 1.3 percent from November and its highest level in a year. In addition, December marked the fourth consecutive month that the Expectations Index stood above 100, which represents a positive outlook among restaurant operators for business conditions in the months ahead. For the first time in a year, a majority of restaurant operators expect their sales to be higher in the months ahead. Fifty-one percent of restaurant operators expect to have higher sales in six months (compared to the same period in the previous year), up from 41 percent who reported similarly last month. In comparison, only 7 percent of restaurant operators expect their sales volume in six months to be lower than it was during the same period !.+%.9 )OWA — The Iowa State Dairy Association (ISDA) will award 10 college scholarships of $500 this year — double the amount awarded last year. The scholarships are available to any level student, from incoming freshmen to seniors, pursing a degree in any field. Candidates must complete an ISDA scholarship application and attach a one-page essay stating his or her plans for the future and why the scholarship would help. The essay should also explain applicants’ connections to the dairy industry. Applications must be returned by April 1 and can be downloaded at www. iowadairy.org. For questions, or to request an application, contact Jessica Bloomberg, ISDA industry relations manager, at 515-971-3620, or jessicab@ iowadairy.org. CMN GROWTH that offers locally produced food items, and more than half of all restaurants currently offer locally sourced produce. Similarly, nearly three-quarters of consumers say they are trying to eat healthier now at restaurants than they did two years ago, and a majority of restaurants agree that customers are ordering more such items. There also are opportunities as technology finds its way to restaurant tables. According to the National Restaurant Association’s 2012 Restaurant Industry Forecast, nearly 4 in 10 consumers say they’d be likely to use an electronic ordering system and menus on tablet computers at table service restaurants. About half say they would use at-table electronic payment options and a restaurant’s smartphone app to view menus and make reservations. At quickservice restaurants, about 4 out of 10 consumers say they would place online orders for takeout, use in-store self-service ordering kiosks, and use smartphone apps to look at menus and order delivery. E-mail and text messaging are proving to be an effective way for restaurant operators to reach their consumers as well. Roughly 3 in 10 adults say they would like to receive an e-mail with daily specials, while about 1 in 5 prefer text messages with similar information. If a restaurant’s specials were available on Facebook or Twitter, nearly one-third of consumers say they’d be likely to sign up, indicating that social media continues to be a powerful marketing tool. To further feed consumers’ digital hunger, more than nine out of 10 restaurant operators say their restaurant likely will be using Facebook in the next year or two, with use of Twitter and smartphone applications expected to be on the rise as well. CMN Continued from page 10 the association says, adding that with the right incentives, that demand can translate into sales. Giving consumers what they want will be crucial for restaurant operators in 2012. As the recession has caused 8 out of 10 consumers to cut back on spending to some degree, it is more important than ever for operators to nudge those guests into patronizing their restaurants. According to the National Restaurant Association’s 2012 Restaurant Industry Forecast, food quality, customer service quality and value are the top attributes consumers look for when choosing a table service restaurant. For quickservice restaurants, customers are looking for food quality, value and speed of service when picking where to dine. When it comes to food, the top menu trends are all about local sourcing and nutrition, especially kids’ nutrition. Nearly three-quarters of consumers say they are more likely to visit a restaurant in the previous year, down from 12 percent last month. Restaurant operators also are much more optimistic about the direction of the overall economy in the coming months. Thirty-nine percent of restaurant operators say they expect economic conditions to improve in six months, up from 27 percent last month and the strongest level in nearly a year. In comparison, only 11 percent of operators said they expect economic conditions to worsen in the next six months, down from 16 percent who reported similarly last month. With higher sales and an improving economy expected in the months ahead, restaurant operators also are beefing up plans for capital spending. Fifty-five percent of restaurant operators plan to make a capital expenditure for equipment, expansion or remodeling in the next six months, up from 47 percent last month and the strongest level in more than four years. The RPI is based on the responses to the National Restaurant Association’s Restaurant Industry Tracking Survey, which is fielded monthly among restaurant operators nationwide. CMN ISDA to award 10 college scholarships REGISTRATION NOW OPEN FOR 2012 Shortcourses ■ Cheesemaking ! Basic Plus, Mt. Vernon, WA; February 21-23, 2012; $529* ! 26th Advanced, Pullman, WA; March 6-8, 2012; $739* ■ Pasteurization ! Workshop, Pullman, WA; April 11-12, 2012; $289* * These are early registration prices; please see website below for details. For more information contact: Marc Bates cheeseguy@charter.net; Phone (509) 595-8652; Fax (509) 472-9650 or link to our website: http://public.wsu.edu/~creamery/upcoming.htm For more information please visit public.wsu.edu/~creamery/upcoming.htm Reprinted with permission from the Feb. 3, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 12 CHEESE MARKET NEWS® — February 3, 2012 NEWS/BUSINESS CBO Continued from page 1 10 years. The office notes that the projections are not a forecast of future events; rather, they are intended to provide a benchmark against which potential policy changes can be measured. CBO notes as specified in law, the projections generally incorporate the assumption that current laws are implemented; however, substantial changes to tax and spending policies are slated to take effect within the next year under current law. According to CBO, an “alternative fiscal scenario” — which could include expiring tax provisions and automatic spending reductions required by the Budget Control Act — would result in far larger deficits and much greater debt than is shown in CBO’s baseline. Deficits would average 5.4 percent of gross domestic product (GDP) over the projection period, rather than the 1.5 percent reflected in CBO’s baseline projections. Debt held by the public would climb to 94 percent of GDP in 2022, the highest figure since just after World War II. CBO’s report estimates that the nation will spend $164 billion on mandatory agriculture programs over the next decade, a decrease of about $14 billion from last year’s projections. The International Dairy Foods Association (IDFA) notes that, as in previous years, the CBO numbers reveal that the majority of agriculture subsidies go to producers of feed grains, rice, peanuts Prices decline following latest gDT auction !5#+,!.$ .EW :EALAND — The trade weighted index was down 0.9 percent, and prices for all commodities were down Wednesday following the latest auction on globalDairyTrade, Fonterra’s internet-based sales platform. The average prices achieved across all contracts and contract periods, and the percent decrease from last month’s event, for each commodity are as follows: s-ILKPROTEINCONCENTRATE53 per metric ton FAS ($2.5261 per pound), down 4.9 percent. s2ENNETCASEIN53PERMETric ton FAS ($3.4995 per pound), down 4.3 percent. s!NHYDROUSMILKFAT53PER metric ton FAS ($1.7881 per pound), down 3.5 percent. s #HEDDAR 53 PER METRIC ton FAS ($1.6511 per pound), down 1.1 percent. s7HOLEMILKPOWDER53PER metric ton FAS ($1.6026 per pound), down 0.9 percent. s3KIMMILKPOWDER53PER metric ton FAS ($1.4951 per pound), down 0.5 percent. The next trading event will be held Feb. 15. For more information, visit www.globalDairyTrade.info. CMN and cotton. Direct payments are estimated to be nearly $60 billion over the next 10 years, with corn receiving more than $22 billion and wheat nearly $11 billion. Crop insurance subsidies to protect yield and revenue are expected to continue to increase, reaching nearly $89 billion over the next decade. CBO estimates for dairy support programs decreased significantly to just $443 million, less than 0.3 percent of total commodity support from USDA. This is down from CBO’s estimate last year, which had projected dairy spending at just under $700 million, IDFA notes. Most of the projected dairy spending will be for payments under the Milk Income Loss Contract Program (MILC). IDFA notes that dairy basically is excluded from the $89 billion that is reserved for crop insurance, with the exception of the Livestock Gross Margin-Dairy pilot program that will cost less than $10 million in 2012. In addition, facing overall federal budget pressures, Congress is expected to make cuts in agriculture spending as part of the next farm bill, and direct payments are squarely on the chopping block, IDFA says. Even though dairy spending is less than a fraction of a percent that is available for crop commodities, the House and Senate agriculture committees are looking to reduce dairy spending by about 20 percent. Ruth Saunders, IDFA vice president of policy and legislative affairs, notes that over the last decade, the dairy industry chose not to move toward risk manage- ment programs, and the funds for these programs were targeted to crop producers. “As a result, dairy spending has significantly declined and spending for revenue protection for other commodities increased dramatically, even though dairy producers had lower net income compared to the other sectors.” IDFA notes it believes this decline is the prime reason that efforts to establish milk production controls are finding support in Congress. IDFA opposes controls on milk production. “I think this baseline will affect the policy debate going forward,” says Jerry Slominski, IDFA senior vice president of legislative affairs and economic policy. CBO notes that there are many developments that could produce economic outcomes that differ from its current forecast, including: s 4HE FORCES THAT HAVE RESTRAINED the economy’s recovery could fade more rapidly than anticipated; s ! SIGNIlCANT WORSENING OF THE banking and fiscal problems in Europe could spill over to U.S. financial markets and greatly weaken the U.S. economy; and s #HANGES IN FISCAL POLICY THAT diverge from those in CBO’s baseline could affect economic growth. CMN NASS Continued from page 1 3.5 percent from December 2010 to 408.6 million pounds. Production of Mozzarella, the most-produced Italian-type cheese, experienced a 4.0 percent increase vs. a year earlier, climbing to 321.0 million pounds. NASS reports production of American-type cheese rose 1.2 percent in the December-to-December comparison to 370.7 million pounds in December 2011. Production of Cheddar, the largest component of American-type production, totaled 274.7 million pounds, down less than 0.1 percent from December 2010. Wisconsin led the nation’s cheese production with 230.2 million pounds in December, up 3.5 percent from its production a year earlier. California followed with 195.5 million pounds, a 2.7-percent increase from a year earlier. The next four cheese-producing states were Idaho with 75.7 million pounds, up 1.3 percent from a year earlier; New York with 68.6 million pounds, up 5.9 percent; New Mexico with 64.7 million pounds, down 2.8 percent; and Minnesota with 52.1 million pounds, down 1.9 percent. NASS reports U.S. butter production totaled 165.9 million pounds in December, a 5.2 percent increase over December 2010’s 157.7 million pounds. The preliminary data put total U.S. butter production in 2011 at 1.81 billion pounds, a 15.4 percent increase vs. 2010 butter production. California led the nation’s butter production in December with 58.1 million pounds, up 8.3 percent vs. its production a year earlier. CMN Reprinted with permission from the Feb. 3, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com February 3, 2012 — CHEESE MARKET NEWS® 13 CLASSIFIED ADVERTISING CHEESE MARKET NEWS is here to deliver original, straightforward, reliable news to help you run your business more efficiently and profitably. My job is to help you sell your equipment, ingredients or services or to find a qualified candidate to join your company, and I take my job seriously. Publisher Getting results is as easy as picking up the phone or emailing me to discuss your needs. I am here to listen and help you achieve your goal. Please call me at (608) 831-6002 or email me at squarne@cheesemarketnews.com and let me go to work for you today. “Say Cheese . . . Say CHEESE MARKET NEWS”! s EQUIPMENT 1 s EQUIPMENT 1 SEPARATORS–CLARIFIERS TOP QUALITY CENTRIFUGES AT UNBEATABLE PRICES! Installation & Start-Up Available SURPLUS WESTFALIA PARTS AT 40% OFF LIST! S.A.M.R. 15036 Clarifier 60,000 P.P.H. Clarification S.A.M.M. 12006 (Frame Only) Totally Rebuilt WESTFALIA TEAR DOWN UNITS M.M. 9004 20,000 P.P.H. Separation. M.M. 5004 11,000 P.P.H. Warm Separation M.M. 3004 8,000 P.P.H. Warm Separation M.M. 13004 (Bowl & Pumps Only) 30,000 P.P.H. Separation DeLAVAL TEAR DOWN UNITS DeLaval 340 1,750 P.P.H. Cold Separation 3,500 P.P.H. Warm Separation DeLaval 372 AH 12,000 P.P.H.Warm Sep. DeLaval 390A 3,500 P.P.H. Cold Separation 7,000 P.P.H. Warm Separation 12,000 P.P.H. Standardization DeLaval 392A 5,500 P.P.H. Cold Separation DeLaval 392A 14,000 P.P.H. Warm DeLaval 395A 20,000 P.P.H. Standardization DeLaval 510 10,000 P.P.H. Cold DeLaval 590 10,000 Cold/35,000 Standardization Clarification DeLaval 525 25,000 P.P.H. Warm DeLaval 545 50,000 P.P.H. Cold or Warm Standardization ALFA-LAVAL CIP UNITS M.R.P.X. 418 H.G.V. Hermedic Separator 55,000 P.P.H. Separation 75,000 P.P. H. Standardization M.R.P.X. 314 T.G.V. Separator 33,000 P.P.H. Separation 50,000 P.P.H. Standardization M.R.P.X. 214 T.G.V. Separators 28,500 P.P.H. Separation 40,000 P.P.H. Standardization WESTFALIA CIP UNITS MSB 200 Separator 55,000 P.P.H. Separation 80,000 P.P.H. Standardization M.S.B. 130 Separator 33,000 P.P.H. Separation 50,000 P.P.H. Standardization M.S.A. 120 Separator 33,000 P.P.H. Separation 50,000 P.P.H. Standardization M.S.A. 100 Separator 27,500 P.P.H. Separation 40,000 P.P.H. Standardization SB 60 Clarifier 90,000 P.P.H. Clarification Warm or Cold M.S.A. 40 Clarifier 60,000 P.P.H. Clarification CHEESE CUTTERS 7 Position Requirements: THAT BOOST PROFITS PHONE: FAX: 1-888-2-GENMAC 1-920-458-8316 E-MAIL: sales@genmac.com GENERAL MACHINERY CORPORATION P.O. BOX 717 SHEBOYGAN, WI 53082-0717 s PLANTS: SALE/LEASE 5 !" !" s-ANDATEADHERENCETOALLSAFETYGUIDELINESANDWORKTOPROVIDEASAFE work environment for all employees. s7ORKCLOSELYWITHANDASSISTALLDEPARTMENTMANAGERSTOASSURETHE common business goals of Hilmar Cheese Company are met. s,EADINTHEPRODUCTIONLEVELDEVELOPMENTOFPERSONNELANDNEWPRODUCTS through coaching, training and utilization of research capabilities. s-ANAGEDAILYANDLONGTERMPRODUCTIONACTIVITIESTOMEETOREXCEED budgeted quality, yield and operating cost targets by managing equipment efficiency and productivity. s-ANAGETHETECHNICALACTIVITIESOFTHE0ROTEIN0LANTINCLUSIVEOFBUTNOT limited to, product development and application, pilot trials, process optimization and new process implementation. s%NSURECOMPLIANCEWITHCURRENTFEDERALSTATEANDLOCALREGULATIONS The ideal candidate will have Bachelors and/or Advanced Degree in a related science and/or business field. 6-8 years of advancement through progressive managerial positions. Technical knowledge will include strategic knowledge of production operaTIONSMANAGEMENTFORQUALITYYIELDANDCOST#HEESE$AIRYEXPERIENCEPREFERRED Saputo, Inc. and our team of 10,200 men and women work together everyday to achieve our performance and growth objectives. Through our collective commitment and passion, we are now the 12th largest milk processor in the world, the largest in Canada, the third largest in Argentina, among the top three cheese producers in the United States and the largest snack-cake manufacturer in Canada. We are seeking a Cheese Procurement Director for the U.S. Division, to join our DCI Headquarters team located in Richfield, WI. DairyVisor, Inc. provides risk management consulting services to the dairy industry. We are looking for a high caliber professional to hire as a “ Procurement Consultant”. !" Hilmar Cheese Company is seeking a Protein Plant Manager in Dalhart, TX. This position will manage day-to-day and strategic activities in support of the quality, yield, technical and mission objectives of Hilmar Cheese Company with focus on the Protein Plant. Cheese Procurement Director — Richfield, WI Help Wanted !" 7 — An Equal Opportunity Employer — Milk Product Buyer Consultant !" HELP WANTED www.hilmarcheese.com E1921 County Rd J Kewaunee, WI 54216 Fax: (920) 863-6485 Email: drlambert@dialez.net FOR SALE: HTST, 2,000 gph, positive displacement pump, skid mounted, plates die checked and new gaskets in the last year; three section plate press. Very good condition; Contact: (714) 507-0638 or email bud@focusedlab. com for details. s Please apply online at: GREAT LAKES SEPARATORS, INC. HELP WANTED 7 This is a great opportunity with an employee-focused company. Come see why Hilmar Cheese is your chance for more! Call Dave Lambert at (920) 863-3306 or Dick Lambert at (920) 825-7468 s HELP WANTED Protein Plant Manager 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? Susan Quarne s Trading experience in milk products and/ or futures market. Ability to work with upper management to identify trading benchmarks. Good communication, writing skills, analytical skills, and attention to detail. Proficiency in MS Office programs. The ability to acquire a Series III brokers license. This is a great opportunity for an aggressive entrepreneurial spirited individual who enjoys trading and analyzing markets. This position will work with mid sized regional based consumptive milk product buyers to assist in the physical procurement of milk product needs, pricing negotiations with manufacturers, communicating market risks and opportunities, and handling of futures/options trading activity. Some travel is required. This position offers very competitive compensation. JOB DESCRIPTION: · Develop and execute cheese sourcing strategies to ensure the Company receives all raw material cheese required; optimized for cost, quality, service and innovation. · Responsible for managing all co-pack and co-manufacture arrangements. · Develop price models for cheese production costs for cheese price negotiations with supplies; cost of milk, ingredients, labor, energy and fixed cost to manufactured one pound of cheese. · Procure cheese from suppliers in various states and effectively negotiate supply agreements. · Monitor and control departmental costs in comparison with budgetary objectives. · Communicate with all internal and external customers and suppliers to ensure schedules are met on time. · Perform miscellaneous duties and responsibilities as deemed necessary and/or needed. JOB REQUIREMENTS: · Bachelors Degree in Business or related field, equivalent combination of education and experience; five to ten years of purchasing/inventory management skills. Familiar with cheese production operations, production costs, quality and service. · Understanding of costs relating to Dairy market prices from raw milk cost through finished product market prices for cheese and co-products. Knowledge of Class III milk prices in Federal Order regulated areas; Class 4B milk prices in California and cheese yield derived milk prices used in non-regulated areas along with milk premiums paid for milk in most states. · Understanding of business/product profitability and P&L’s. · Strong negotiation, analytical and organizational skills with attention to detail. · Strong communication skills and interpersonal skills. · Ability to develop strong working relationships with internal and external customers and deliver business opportunities. · Proficient in Microsoft Office, Word, Excel. · Must be self-motivated, results-oriented, possess high degree of initiative and work well under pressure. We are an equal opportunity employer offering a competitive salary and a comprehensive benefits package. For confidential consideration, forward a resume including salary history to: jobs@dcicheeseco.com s MARKETING 10 s MISCELLANEOUS 11 Please contact Joe Spader: 320-634-3771 jspader@dairyvisor.com www.dairyvisor.com Reprinted with permission from the Feb. 3, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 14 CHEESE MARKET NEWS® — February 3, 2012 NEWS/BUSINESS NUTRITION Continued from page 1 package or point-of-sale, and others on websites. Fage Total Greek Yogurt, for example, offers a “Protein & Diet” link on its website, www.fageusa.com. This page advertises the yogurt’s high concentration of all-natural protein, up to 23 grams in each individual serving, explaining protein’s capacity for muscle-building and a source of sustained energy. Blindauer says the Greek yogurt category had done a tremendous job advertising its protein content. “Greek yogurt is probably the hero when it comes to talking about protein in the marketplace,” she says. “We’re also seeing it in milk, cottage cheese and some cheese.” s&RESHCUES In addition to people’s interest in nutrients, a general interest in food that is “fresh and natural” is increasing among consumers. The concepts of “real,” “fresh” and “natural” matter to 38 percent of consumers, and that group appears to be growing, according to the Natural Marketing Institute. Another recent study from market research and strategic consulting company HealthFocus International says 84 percent of the population thinks that knowing a food or beverage is natural makes it a little or much healthier. “Consumers are redefining health and wellness to a broader definition,” Blindauer says. “It’s not just nutrients, but where a product comes from and how it’s made.” From its farmstead roots to its limited ingredients, natural cheese is an ideal product to appeal to those looking for “fresh and natural.” In order to better understand what this growing interest in “fresh and natural” means for dairy, the Innovation Center for U.S. Dairy Health and Wellness Committee did some research and identified four triggers that prompt consumers identify a products as fresh and natural. Blindauer says these cues include: s ! SHORT LIST OF INGREDIENTS SO IT looks like people could make the product themselves. “This works very well with natural cheese, which starts with four basic ingredients,” Blindauer says. s ! PRODUCT THAT IS PLACED ON THE store perimeter and/or in the refrigerated section; s3HELFLIFEANDPERISHABILITYCUES a really long shelf life isn’t perceived by consumers as fresh and natural; and s 4HE PRODUCT FORM AND PACKAGing. People were interested in food that was not machine-made or in a manufactured-looking shape. The more home-made, irregular shapes did better. “All together, those cues can encourage all manufacturers to take a look at their product portfolio. There may be things they can refine, like the number of ingredients on the label or the look of the packaging,” Blindauer says. “Protein and ‘real, fresh and natural’ are some of the newer positive messaging that provide a great opportunity,” she adds. “The backbone we need to reinforce is that there are multiple nutrients in dairy products. They are known for calcium, but the combination of calcium, protein and other nutrients gets us mileage with the new consumer, and this new news fits into their lifestyle.” C L A S S I F I E D ADVERTISING s HELP WANTED 7 s HELP WANTED 7 s)NSTORESTRATEGIES When it comes to advertising the healthfulness of dairy products or other foods, front-of-pack messages and the shape of the package are the best ways to do that at the point of purchase, Wansink says. Examples of front-of-pack icons include “good for you” and “better for you” claims or guiding star systems. However, companies should be aware that these up-front health messages tend to polarize consumers. For instance, if a product says “gluten free,” some consumers may think that means it tastes really bad, while others might think it’s really good for you and perceive it as being lower in calories than it really is. Wansink suggests putting “gluten free” on an artisan cheese would end up turning off potential consumers. “You want to make sure the focus on the front of pack is something that’s very important to your market, not something that some percentage of them will take in the wrong way,” Wansink says. “It depends on who the target market is. If it’s a super health-conscious market, it can have a very positive impact.” When choosing the message to convey, Wansink says people are most concerned with nutrition benefits that are perceived as immediate. “It’s not nutrition per se,” he says. “What they like are the consequences of nutrition. The consequences that appeal to most consumers aren’t that they might live three months longer if they drink this. But will it make me more full, skinnier, my complexion better. Things that are really immediate, not long-term.” The Dairy Research Institute offers a quick-reference guide to nutrition claims for dairy products to give companies a basic understanding of nutrition claims and labeling rules. The guide, available at www. usdairy.com/dairyresearchinstitute, specifically addresses nutrition and health-related claims that represent potential opportunities for use with fluid milk, cheese and yogurt products. As regulations vary with different products and are updated, Blindauer says each manufacturer must work with its own legal and regulatory affairs department as well. “A message that works for one product might not for another,” Blindauer says. “Each and every time, check with your legal department.” Wansink also notes one thing that has a very powerful subconscious impact on consumers is packaging. This can include colors, shapes or simply the fact that there is a change. “Lighter-color packaging for lowerfat milk has had a very positive impact without people saying, ‘this tastes terrible.’ Another strategy is altering packaging so it looks different than how it used to,” Wansink says. “These things make people rate a product differently, and rate the health of the product differently.” For example, when McDonald’s switched from milk cartons to plastic milk jugs, the change affected consumers in three different ways, Wansink says. “One was the convenience factor. Then there was the not-gross-to-drinkout-of factor, since it was not made of paper. Third was that ‘there is something different about this, it must be better.’ Healthier, more fresh, cooler. You make one change like that, and it can move people,” he says. s.EWPARADIGMFORHEALTH Miller says the Dairy Research Institute constantly is working to grow its body of research, building opportunities for health and nutrition claims from the data it has compiled. “In nutrition, we have a lot of really great research going on,” he says. “It’s focused on metabolic health, looking at body weight, body composition, and the role of dairy foods in reducing diseases such as type 2 diabetes and cardiovascular disease.” Other recent data indicate dairy foods do not raise blood cholesterol levels as much as would be predicted based on dairy’s fat content, Miller says, adding that more research needs to be done in the future to show the benefits in consuming milkfat. Turn to HEALTH, page 15 SUPPLY CHAIN MANAGER please enter my subscription to 1 YEAR RATES: $135 (2nd Class) $190 (1st Class/Canada) ELECTRONIC 1 YEAR RATES: $135 (E-mail Only. No Mail Service) $210 (E-mail With 2nd $330 (International) Class Mail Service) 2 YEAR RATES: $195 (2nd Class) $315 (1st Class/Canada) $525 (International) Payment enclosed Bill Me Payment by credit card: VISA MASTERCARD AMERICAN EXPRESS Card # ________________________________________________ Exp. Date______ Sec. Code_____ NAME: _______________________________________________________________________________________ TITLE: _______________________________________________________________________________________ COMPANY: ____________________________________________________________________________________ ADDRESS: ____________________________________________________________________________________ Peggy White Human Resource Manager pwhite@dairyfoodusa.com — An Equal Opportunity Employer — EMAIL: ____________________________________________________ PHONE: ___________________________ CITY: _____________________________________________________ STATE: ________ ZIP: _______________ SIGNATURE: _______________________________________________________ DATE: ____________________ Mail to: Subscriber Services 5 5,4 5 '$$)%0,+ &,+% 5 !4 5*!')/-1!.+%#&%%/%*!.(%0+%3/#,*5333#&%%/%*!.(%0+%3/#,* Reprinted with permission from the Feb. 3, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com February 3, 2012 — CHEESE MARKET NEWS® 15 NEWS/BUSINESS Dairy Research Institute highlights findings in 2011 that help support role of dairy in health 2/3%-/.4)LL— The Dairy Research Institute recently compiled a list of the top dairy nutrition and product research insights from 2011. “The role of dairy intake in reducing the prevalence of health conditions like obesity, metabolic syndrome and heart disease is central to our research initiatives,” says Gregory Miller, president of the Dairy Research Institute, which works to strengthen the dairy industry’s access to and investment in the technical research required to drive innovation and demand for dairy products. “This year saw several advances in this work, as more and more research identifies the positive effects dairy can have on a number of health conditions.” According to the Dairy Research Institute, the top dairy nutrition and product research insights from 2011 include: s $AIRY CONSUMPTION WAS ASSOCIated with lower incidence of metabolic syndrome, a condition which increases the risk of cardiovascular disease, and HEALTH Continued from page 14 For dairy companies wanting to advertise the health and nutrition benefits of their products, Miller suggests starting by quoting some of what the most recent Dietary Guidelines are saying about dairy foods. “The Dietary Guidelines are saying ‘dairy first,’” he says. “Even with lactose intolerance, you don’t need to skip dairy. Try lactose-free milks, hard cheeses that are low in lactose, yogurts that help with digestion, or consume smaller amounts of milk with meals. This really helps consumers.” Miller adds that research is showing that positive, enabling messages about nutrient-rich foods such as dairy help consumers improve their diets. “If they can choose more of those nutrient-rich foods, put it in their diets, it tends to displace nutrient-poorer foods,” Miller says. “Cheese only contributes about 5 percent of the calories in a diet, but it also is contributing 21 percent of calcium, 11 percent of phosphorus, 9 percent of the protein, 9 percent of the vitamin A and 8 percent of the zinc. Nutritionists say ‘choose the calories you eat from the company they keep.’ Cheese gives quite a few nutrients per calorie.” After decades of being told to avoid things like sodium, certain fats and added sugars, Miller says the paradigm is turning toward choosing nutrient-rich foods rather than nutrient avoidance. “Consumers are really tired of being told what not to eat,” he says. “They are ready to hear a more enabling message around eating more nutrientrich foods. They’ll get it.” CMN type 2 diabetes. s-ODERATEEVIDENCEASREPORTEDIN the 2010 Dietary Guidelines for Americans, that indicates that the intake of milk and milk products is associated with a reduced risk of cardiovascular disease and type 2 diabetes. s $RINKING CHOCOLATE MILK AFTER A workout was found to boost improvements in aerobic fitness and body composition and benefit muscle recovery and subsequent exercise performance. s3IGNIlCANTADVANCESWEREMADETO improve the quality and performance of whey protein, allowing for expanded use in food and beverage products. s 0RODUCT RESEARCH HAS EXPLORED and uncovered new uses for dairy co- products to provide ingredient solutions for the food and beverage industry to help address consumer demand. In addition to its focus on dairy nutrition and product research, the Dairy Research Institute says it continued in 2011 to make advances in the area of sustainability, researching ways to provide dairy products that are produced responsibly and in an environmentallyfriendly way. The Dairy Research Institute says it will continue to focus on areas of research uncovering valuable nutrition insights for the dairy, food and beverage industries, specifically focused on metabolic health. In addition, dairy product research will look to improve upon or create new dairy processes and ingredients to help meet the needs of the dairy, food and beverage industries. Three studies also are underway to establish baseline measures of the environmental impact of milk, cheese and packaging. “This is a very exciting time for the dairy industry,” says Kevin Ponticelli, chairman of the board of directors of the Dairy Research Institute, and senior executive vice president of Dairy Management Inc. “The Dairy Research Institute and America’s dairy farmers are dedicated to working with industry to generate and communicate the technical and development insights in nutrition, product and sustainability research that will build long-term dairy demand.” CMN 14th Annual Dairy Ingredients Symposium -ARCHs)NTER#ONTINENTAL-ARK(OPKINS3AN&RANCISCO COST: Registrations purchased prior to February 10, 2012: $475. After February 10th: $525.00. 15% discounts for groups of “3 or more” if booked by February 10, 2012. Use promotion code “GRP.” All payments must be submitted at the same time to gain the group discount registration rates. If as a result of a cancellation you fall below three, the regular registration price will be applied. LODGING: A block of rooms has been reserved at theInterContinental Mark Hopkins, One Nob Hill, San Francisco, CA. The room block rate is $189 night for a single or double room and includes complimentary internet and fitness center access. They will honor this rate until February 4, 2012. To Make Hotel Reservations Call 1-800-662-4455. Please let them know you are with the “14th Annual Dairy Ingredients Symposium.” PRE-CONFERENCE ONE-DAY WORKSHOP: Understanding and Working with Dairy Ingredients Wednesday, February 29, 2012 InterContinental Mark Hopkins Hotel, San Francisco, CA Cost: $150 ADDITIONAL INFORMATION For more information on this program or any other DPTC course, please contact: Laurie Jacobson at 805-305-5056 or email ljacobso@calpoly.edu CONFERENCE WEBSITE: www.calpoly.edu/~dptc/14th_ingredients_symposium.html 2012 Program Schedule Day 1 Thursday, March 1, 2012 Day 2 Friday, March 2, 2012 7:00 a.m. 8:00 a.m. 8:10 a.m. 8:15 a.m. REGISTRATION (Continental breakfast available) WELCOMING REMARKS Session I: Global Marketplace for Dairy Ingredients Dairy Ingredients and the Global Business Environment; Dan Basse, AgResource Company Future Outlook for Dairy Ingredients; Phil Plourd, Blimling & Associates BREAK – REFRESHMENTS, POSTERS, PRODUCT SAMPLES Session II: New Approaches to Dairy Ingredients Processing I Principles and Practice of Electrodialysis of Whey for Demineralization; Francois Rousset, Novasep Complex Oligosaccharides as Dairy Ingredients; Daniela Barile, University of California, Davis Freeze Drying of Heat Sensitive Materials to Maintain Bioactivity and Potential Applications for High Value Dairy Ingredients; Jakob Svendsen, GEA Niro LUNCH (provided) Session III: New Approaches to Dairy Ingredients Processing II Separating Milk Into Different Value-added Fractions – What are the Opportunities?; John Lucey, University of Wisconsin, Madison Overcoming Hurdles to U.S. Innovation and Competitiveness: A Perspective From Oceania; Mike Matthews, Consultant (formerly CEO Tatua Cooperative, New Zealand) BREAK – REFRESHMENTS, POSTERS, PRODUCT SAMPLES Session IV: Quality Assurance in Dairy Ingredients Food Safety Modernization Act – Latest Update; Allen Sayler, Randolph Associates What is New in Cleaning and Sanitation; (speaker TBA) Wrap-up Day 1 Adjourn RECEPTION (hosted by USDEC) 7:00 a.m. 8:00 a.m. 8:05 a.m. REGISTRATION (Continental breakfast available) Session V: Opportunities in Nutrition and Health Medical Nutrition Market and Opportunities for Dairy; David Clark, (formerly Friesland Campina) Nutrition Research Update – What Opportunities are on the Horizon? Chris Cifelli, Dairy Management, Inc. “Nutrition Trends: Their Impact on Health Professionals and Consumers; Mary Anne Burkmann, Dairy Council of California BREAK – REFRESHMENTS Session VI: Dairy Ingredients Structures for Improving Health Colloidal Properties Fundamentals to Design Food Structures; Allen Foegeding, North Carolina State University TBA LUNCH (provided) Session VII: End User Dairy Ingredients Needs, Applications and Opportunities An Industry Roundtable Discussion (speakers TBA) BREAK – REFRESHMENTS Session VIII: Sustainability in Dairy Ingredient Sector What does it mean to be green? Dairy Industry Approaches to Addressing Sustainability; TBA, Dairy Management, Inc. CLOSING REMARKS Adjourn 9:05 a.m. 9:55 a.m. 10:20 a.m. 10:25 a.m. 11:00 a.m. 11:35 a.m. 12:10 p.m. 1:30 p.m. 1:35 p.m. 2:20 p.m. 3:00 p.m. 3:25 p.m. 3:30 p.m. 4:00 p.m. 4:30 p.m. 4:35 p.m. 5:30 p.m. 8:50 a.m. 9:20 a.m. 9:50 a.m. 10:15 a.m. 10:20 a.m. 11:05 a.m. 12:00 p.m. 1:15 p.m. 2:45 p.m. 3:10 p.m. 3:15 p.m. 3:45 p.m. 4:15 p.m. 4:30 p.m. For more information please visit www.calpoly.edu/~dptc/14th_ingredients_symposium.html Reprinted with permission from the Feb. 3, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 16 CHEESE MARKET NEWS® — February 3, 2012 NEWS/BUSINESS Cheese smuggler receives 20-year ban from importing following conviction last year WASHINGTON — A Florida man who last year was convicted of smuggling adulterated cheese into the United States has been banned from importing any more food into the country for 20 years. FDA issued an order effective Jan. 25 prohibiting Yuri Izurieta for a period of 20 years from importing articles of food or offering such articles for importation into the United States. The order, published in the Jan. 25 Federal Register, is based on a finding that Izurieta was convicted of six felony counts under federal law for conduct relating to the illegal importation of food. Izurieta was given notice of the proposed debarment and an opportunity to request a hearing. As of Nov. 10, 2011 (30 days after receipt of the notice), Izurieta had not responded, which FDA says constitutes a waiver of his right to a hearing concerning this action. Last year Yuri and Anneri Izurieta and Naver Trading Corp., a Miami-based dairy importer, were charged with importing shipments of dairy products into the United States over several years, though they were not authorized to sell and distribute these products. (See “Couple indicted for smuggling cheese” in the March 11, 2011, issue of Cheese Market News.) In May, the defendants were convicted of one count of conspiracy to smuggle goods into the United States and five counts of smug- gling goods into the United States. Anneri Izurieta was sentenced to 30 months in prison, to be followed by an additional 10 months’ imprisonment because she committed some of the smuggling while on probation from a conviction for similar offenses. Yuri Izurieta was sentenced to 27 months’ imprisonment, and Naver Trading Corp. was sentenced to two years’ probation. Over several years, the Izurietas and Naver Trading Corp. repeatedly imported multi-ton shipments of cheese and other dairy products into the United States. Although these dairy products were released form the port into the custody of the Izurietas and Naver Trading Corp., the defendants were not authorized to sell and distribute the products. According to FDA, Yuri Izurieta imported dairy products and other food from Honduras and Nicaragua while working for Naver Trading Corp., and he failed to disclose the location of dairy product shipments after learning FDA had slated specific shipments for examination due to contamination concerns. FDA says Izurieta also distributed shipments of dairy products after learning specific shipments were slated for FDA examination due to adulteration concerns and failed to redeliver for destruction and exportation shipments that FDA had determined to be adulterated with E. coli, Staphylococcus aureus and Salmonella. CMN BEL BRANDS Continued from page 1 For more information please visit www.cheeseexpo.org creation of up to 400 jobs. It goes beyond the estimated annual $500 million economic impact once the plant is fully operational. And it goes beyond the opportunity for our dairy operations to expand both capacity and market share. “Having an internationally recognized company like Bel Brands as our newest corporate citizen tells the world that South Dakota is open and ready for business from anywhere around the globe,” he adds. Chambers says Bel Brands is excited to become a part of the Brookings community and looks forward to providing new opportunities for economic growth and employment in the area. “We wish to thank Gov. Daugaard, the Governor’s Office of Economic Development team, the Brookings Economic Development team, Mayor (Tim) Reed and the city of Brookings for their tireless effort in helping us select Brookings as the site for our new plant,” he says. Mayor Reed notes that Bel Brands’ project will complement the city’s efforts to build upon regional advantages, such as the South Dakota State University Dairy Science program, while adding value and creating new economic opportunities for regional agricultural producers. Chambers notes that Corporate Social Responsibility (CSR) is an integral part of Bel Brands’ global development policy. One of the pillars of Bel’s CSR initiative is to be actively committed to economic, social and environmental sustainability in the local communities in which the company operates. Jones Lang LaSalle and T.C. Jacoby and Co. represented Bel Brands in the site selection process. In addition, Francine Moudry, previously director of operations for Bel Brands’ Leitchfield, Ky., plant, recently was appointed project director to lead the planning and construction of the new Brookings manufacturing facility and is relocating to the Brookings area. CMN Reprinted with permission from the Feb. 3, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com