Rising cheese prices can be challenge for pizza business · the industry regain momentum....

Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

Menu regulations put some pizza chains in unique spotBy Alyssa Sowerwine

MADISON, Wis. — The food industry is gearing up for the an-ticipated release of draft regulations from FDA on national menu labeling provisions, but some companies feel the regulations should not take a “one size fits all” approach.

FDA in August 2010 first announced the availability of a draft guidance for the industry that included questions and answers regarding implementation of menu labeling regulations included in the Patient Protection and Affordable Care Act of 2010.

The regulations would require chain restaurants, similar retail food establishments and vending machines with 20 or more locations to provide specific nutrition labeling information. Those restaurants must post calories on menus, menu boards

Pizza industry using greater variety, volumes of cheese By Johanna Nelson

MADISON, Wis. — The pizza industry has proven to be a bright spot for cheese companies struggling through difficult economic times. And it’s not just producers of cheeses such as Mozzarella that benefit — pizzerias throughout the country are incorporating a variety of “non-traditional” pizza cheeses into their pies.

“The pizza industry is a huge source of revenue,” says Dean Som-mer, cheese and food technologist for the Wisconsin Center for Dairy Research (CDR), Madison, Wis. “It is critical for the cheese industry, and has been for many years.”

According to Jim Montel, executive vice president, strategic initia-tives, Dairy Management Inc. (DMI), 25 percent of U.S. cheese produced is used by the pizza industry.

As a key player in the cheese industry’s economic wellbeing, DMI formed a partnership with Domino’s Pizza in 2009 to address a decline of cheese consumption on pizzas. The partnership that began with Domino’s American Legends line of specialty pizzas has since helped the industry regain momentum.

“Research as well as what pizza chains would tell you is that they lost a focus on pizza and started selling sandwiches, salads, desserts and pasta,” Montel says. “And then with the escalation of commodity costs, many of them tried to deal with rising costs by taking cheese off pizzas or reducing the quality.”

As a result, he says consumers moved into other categories to meet their in-restaurant eating needs.

When the pizza cheese issue came on the radar screen, DMI selected Domino’s Pizza as a key partner driver to help reinvigorate the sector and sell more pizza and pizza cheese.

To help realize this objective, Montel says three key drivers in the pizza category were assessed — value, product quality and advertising.

“We try to push all three buttons,” Montel says. American Legends pizzas feature high-end ingredients. The cheese

content depends on variety, but typically they have about 40 percent more cheese than a regular pizza.

The line features eight specialty pizzas, including the newest

Volume 31 February 25, 2011 Number 5

By Alyssa Sowerwine

MADISON, Wis. — To the surprise of many, cheese prices have seen steady increases over the past several weeks at the Chicago Mercantile Exchange (CME). While this is welcome news to some in the dairy indus-try, it presents some challenges for pizza makers.

“Coming into the year, I think it’s safe to say that the overall outlook in the dairy industry was bearish,” says Rob Chesler, vice president

Rising cheese prices can be challenge for pizza business

of foodservice at FCStone/Downes-O’Neill. “Prices aren’t exactly where we expected them to be, especially for this time of year.”

USDA’s Dairy Market News notes that cheese inventories remain above historic levels.

Cheddar block prices at the CME have increased from $1.3425 per pound at the begin-ning of January to $1.9550 as of Feb. 18, while barrels jumped from $1.3400 to $1.9175 in the same time period.

Prices continued to increase this week. On Tuesday, Cheddar blocks climbed another 2.75 cents, and then another fourth of a cent on Wednesday to settle at $1.9850, where the price remained Thursday.

Cheddar barrels also in-creased by 2.75 cents on Tuesday to $1.9450 per pound. Barrels saw a slight decrease on Wednesday to $1.9400 but again rose by a cent on Thursday to settle at $1.9500.

This price pattern is the op-posite of what was forecasted back in January, notes Bob Cropp, professor emeritus at the University of Wisconsin Cooperative Extension in his latest “Dairy Situation and Outlook” report.

“It was then assumed that it

would take the first half of the year to slow down the growth in milk production as dairy pro-ducers slowly adjust cow num-bers and milk per cow slows in response to much higher feed prices,” he says. “But it now looks like the opposite will occur with prices averaging higher for the first half of the year than the second half, and with averages for the year much improved over 2010.”

Cropp notes the run-up in prices is partially explained by several factors. While milk production is still running well above year-ago levels, some as-sume that sharply higher corn, soybean and hay prices will soon curtail milk production.

Second, while fluid milk sales have not shown growth, butter and cheese sales have been quite favorable despite higher prices, he says.

In addition, Australia and New Zealand, which account for about 40 percent of world dairy trade, have scaled back anticipated milk production for the year due to adverse weather that has impacted pasture conditions, he adds.

“Improvement in the world economy also has increased the demand for dairy products, and at higher prices than in

past years,” Cropp says. “The net result is that it appears that buyers are anticipating considerably tighter supplies of milk and dairy products for the immediate months ahead and have been aggressive in bidding up prices.”

Dairy Market News notes that Mozzarella interest re-mains solid, as pizza makers re-supply for the typically stronger NCAA basketball tournament demand.

“Pizza companies kind of get the double whammy when it comes to cheese prices,” Chesler says. “The high demand for Mozzarella has driven prices up, and pizza demand certainly has helped to fuel that. At the same time, about 35-50 percent of pizza companies’ input costs are from cheese.”

Chesler adds that adding in wheat costs and energy costs for moving product can put a financial strain on pizza operators.

He notes that pizza opera-tors often buy cheese in a “cents plus” arrangement, negotiating prices based on the CME block price.

Chesler says that typically he recommends pizza opera-tors lock in a price for about half

Sensory analysis helps make good cheese matches

Turn to PRICES, page 32 D

Turn to MENU, page 25 D

By Rena Archwamety

MADISON, Wis. — In between the process of mak-ing cheese and selling the finished product, sensory analysis is a helpful research and development tool that can fine tune the cheese to best match its end use.

Sensory analysis covers a broad range of attributes, from simple observations of Turn to SENSORY, page 28 DTurn to VARIETY, page 26 D

✦ Total butter, cheese stocks up from December. For details, see page 3.

✦ Guest column: ‘Taking policy changes to Capitol Hill without consensus is unacceptable.’ For details, see page 4.

✦ Study finds actual sodium may vary from what is on manufacturers’ labels. For details, see page 12.

✦ January milk production up 2.3 percent from year ago. For details, see page 31.

INSIDE

Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

MARKET INDICATORS

2 CHEESE MARKET NEWS® — February 25, 2011

DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions.

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CLASS III PRICE(Dollars per hundredweight, 3.5% butterfat test)

YEAR2005200620072008200920102011

JAN 14.1413.3913.5619.3210.7814.5013.48

FEB 14.7012.2014.18 17.03 9.31 14.28

MAR14.0811.1115.0918.0010.4412.78

APR14.6110.9316.0916.7610.7812.92

MAY13.7710.8317.6018.18 9.8413.38

JUN13.9211.2920.1720.25 9.9713.62

JUL14.3510.9221.3818.24 9.9713.74

AUG13.6011.0619.8317.3211.2015.18

SEP14.3012.2920.0716.2812.1116.26

OCT14.3512.3218.7017.0612.8216.94

NOV13.3512.8419.2215.5114.0815.44

DEC13.3713.4720.6015.2814.9813.83

(These data, which includes government stocks and is reported in thousands of pounds, are based on reports from a limited sample of cold storage centers across the country. This chart is designed to help the dairy industry see the trends in cold storage between the release of the National Agricultural Statistics Service’s monthly cold storage reports.)

ButterCheese

7,033129,008

+188-188

10,601140,727

+2,527+1,899

-3,568-11,719

+56 +1

Weekly Cold Storage Holdings February 21, 2011On hand Week Change since Feb. 1 Last YearMonday Change Pounds Percent Pounds Change Cheddar Cheese and Dairy Product Prices

Cheese 40-lb. Blocks:

*/Revised. 1/Prices weighted by volumes reported. 2/Sales as reported by participating manufacturers. Reported in pounds. More information is available by calling NASS at 202-690-2424.

1/29/11 2/12/11

Average price1

Minn./Wis. Other states U.S.Sales volume2

Minn./Wis. Other states U.S.

Cheese 500-lb. Barrels:Average price1

Minn./Wis. Other states U.S.Adj. price to 38% moisture Minn./Wis. Other states U.S.Sales volume2

Minn./Wis. Other states U.S.Moisture content Minn./Wis. Other states U.S.

2/5/11 2/19/11

$1.5342$1.4524$1.4580

695,3799,462,937

10,158,316

$1.5685$1.5115$1.5383

$1.4996$1.4367$1.4662

4,384,7504,921,8149,306,564

35.15%34.77%34.95%

$2.06742,461,028

$1.285924,643,150

$.399610,615,492

$1.6559$1.5659$1.5719

698,3219,892,940

10,591,261

$1.6992$1.6216$1.6639

$1.6200$1.5317$1.5796

4,870,0544,059,1568,929,210

34.97%34.36%34.69%

$2.07853,843,089

$1.332017,218,051

*$.4085*9,323,662

$1.7646$1.6444$1.6518

570,3148,683,1649,253,478

$1.7993$1.7678$1.7840

$1.7223$1.6722$1.6979

4,858,0394,579,6809,437,719

35.23%34.46%34.86%

$2.08623,165,702

$1.3614*17,309,984

$.4201*10,072,646

Butter:Average price1 U.S.Sales volume2 U.S.

Nonfat Dry Milk:Average price1 U.S.Sales volume2 U.S.

Dry Whey:Average price1 U.S.Sales volume2 U.S.

For the week ended:

$1.8445$1.7799$1.7850

733,0368,580,2529,313,288

$1.9171$1.8858$1.9005

$1.8364$1.7847$1.8088

3,967,7084,496,9368,464,644

35.28%34.49%34.86%

$2.07922,473,486

$1.393818,128,348

$.435010,205,610

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

FEB11MAR11APR11MAY11JUN11JUL11AUG11SEP11OCT11NOV11DEC11

16/2,180

43.0051.0058.1858.5058.7558.2555.2553.2548.9547.7548.50

479300317259177110104107115109103

DRY WHEY FUTURES for the week ended February 24, 2011(Listings for each day by month, settling price and open interest)

43.0051.7557.9858.0058.5058.2555.2553.2548.9347.7548.50

479301318264177110104107115109103

27/2,187

43.0050.7557.0056.0055.0057.0054.9851.5048.9047.7048.50

479296313263182110104107116110104

67/2,184

Fri., Feb. 18 Mon., Feb. 21 Tues., Feb. 22 Wed., Feb. 23 Thurs., Feb. 24

43.0053.0358.7358.5058.7559.0055.7553.5050.0048.5048.50

479299317260177108105106114108103

20/2,176

Market closed

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


17/1,961

1.7361.8801.7701.7521.7201.7171.7201.7201.7051.6851.680

371306217142138

979298

150173177

CHEESE FUTURES for the week ended February 24, 2011(Listings for each day by month, settling price and open interest)

1.7361.8801.7251.7051.6941.7171.7251.7201.7051.6851.680

371306219143138

979398

150173177

7/1,965

1.7361.8801.6681.6441.6491.6621.7021.7181.7051.6851.680

371312243152152

919698

150173177


1.7361.8611.7701.7521.7201.7071.7201.7301.7151.6801.680

371310217142138

959292

149171175

40/1,952 139/2,015

Market closed

Monday Tuesday Wednesday Thursday Friday

Chicago Mercantile Exchange

Feb. 21 Feb. 22 Feb. 23 Feb. 24 Feb. 25

Weekly average (Feb. 22-25): Barrels: $1.9463(+.0398); 40-lb. Blocks: $1.9850(+.0415).Weekly ave. one year ago (Feb. 22-26, 2010): Barrels: $1.3290; 40-lb. Blocks: $1.3690.

Cheese BarrelsPriceChange

Cheese 40-lb. blockPriceChange

Extra Grade NDMPriceChange

Grade A NDMPriceChange

Weekly average (Feb. 22-25): Extra Grade: $1.8000(+.0175); Grade A: $1.8325(+.0210).

Grade AA ButterPriceChange

Class II Cream (Major Northeast Cities): $2.2511(-.0567)–$2.5990(-.0235).Weekly average (Feb. 22-25): Grade AA: $2.0100(-.0365).

$1.9400-1/2

$1.9850+1/4

$2.0050NC

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

$1.8000 NC

$1.8325NC

Cash prices for the week ended February 25, 2011

$1.9450+2 3/4

$1.9825+2 3/4

$1.8000NC

$1.8325+1/4

$2.0050NC

$1.9500+1

$1.9850NC

$2.0100+1/2

$1.8000 NC

$1.8325NC

MarketClosed

MarketClosed

MarketClosed

$1.9500NC

$1.9875+1/4

$1.8000 NC

$1.8325NC

$2.0200+1

Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.comReprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com

February 25, 2011 — CHEESE MARKET NEWS® 3

DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions.

For more information circle 1 on the FAST FAX form on page 32.

MARKET INDICATORSNEWS/BUSINESS

YOU CAN CUT YOUR HEDGING COSTS TRADE WITH GPC FOR $3.41 PER SIDE

Class III Milk Class IV Milk Whey Cheese Cash Settle Butter NFDM Options Trade Electronically $3.41 Side*

Call Free: 1-877-Gressel Southwestern Division: (602) [email protected]

BROKERS OF DAIRY FUTURES & OPTIONS SERVING AGRI-BUSINESS SINCE 1933

CHEESE FUTURESNOW TRADING.

U.S. butter, cheese stocks rise from DecemberWASHINGTON — Total U.S. butter in cold storage as of Jan. 31, 2011, was 118.9 million pounds, an increase of 46 percent from the 81.7 million pounds in cold storage at the end of December 2010, according to data released this week by USDA’s National Agricultural Statistics Service (NASS). January butter stocks, however, remained 29 percent below the 168.1 million pounds in storage as of Jan. 31, 2010.

In its monthly report, NASS reports total U.S. natural cheese in cold stor-age at the end of January 2011 was 1.05 billion pounds, up less than 1 percent from the end of December 2010 and 7 percent higher than the 981.6 million pounds in cold storage at the end of January 2010.

Total American cheese in cold stor-age was 639.0 million pounds as of Jan. 31, 2011, NASS says, up 1 percent from Dec. 31, 2010’s 630.8 million pounds and

up 9 percent from Jan. 31, 2010’s 588.2 million pounds.

Swiss cheese in cold storage totaled 36.3 million pounds at the end of Janu-ary 2011, up 15 percent from December 2010’s 31.5 million pounds and up 39 percent from January 2010’s 26.2 mil-lion pounds.

Other natural cheese in cold storage totaled 376.4 million pounds at the end of January 2011, down 2 percent from December 2010’s 385.6 million pounds but 3 percent higher than January 2010’s 367.2 million pounds.

NASS further reports that 2010 revisions of American and other natu-ral cheese are the result of increased coverage of cold storage facilities. Also released this week was the an-nual cold storage summary for 2010. The report shows total natural cheese in cold storage peaking at 1.07 billion pounds at the end of July 2010. CMN

CWT assists with more exports of cheeseARLINGTON, Va. — Cooperatives Working Together (CWT) recently has accepted 20 requests for export assis-tance from Darigold, Dairy Farmers of America, and Foremost Farms to sell a total of 2,306 metric tons (5.08 million pounds) of Cheddar and Monterey Jack to customers in North Africa, the Middle East, Central America, Europe and Asia. The product will be delivered February

through May 2011.In 2011, CWT has assisted members

in making export sales of Cheddar, Monterey Jack and Gouda cheese to-taling 4,880 metric tons (10.8 million pounds).

CWT will pay export bonuses to the bidders when delivery of the product is verified by the submission of the required documentation. CMN

Dry Products February 25, 2011

DRY BUTTERMILK(FOB)Central & East: $1.3500(+4)-$1.6500(+16).(FOB) West: $1.3300(+5)-$1.5400; mostly $1.3900(+5)-$1.4500(+5).

EDIBLE LACTOSE(FOB)Central and West: $.3100(-1)-$.4600; mostly $.3300-$.3900.

NONFAT DRY MILKCentral & East: low/medium heat $1.4400(+2)-$1.8500; mostly $1.4500-$1.7500. high heat $1.4500-$1.8500.West: low/medium heat $1.3500(+5)-$1.8500; mostly $1.4500(+5)-$1.7900(+5). high heat $1.4000(+4)-$1.7000(+8).Calif. manufacturing plants: extra grade/grade A weighted ave. $1.3293(+.0173) based on 14,124,437 lbs. Sales to CCC: 0 lbs.

WHOLE MILK POWDER (National): $1.7500(+10)-$2.0400.

DRY WHEYCentral: nonhygroscopic $.3600-$.5800(+15); mostly $.3700-$.4175.West: nonhygroscopic $.4050(+3/4)-$.6700; mostly $.4400(+1)-$.5150(+1 1/4).(FOB) Northeast: extra grade/grade A $.4075(+1/2)-$.4325(+1/2).

ANIMAL FEED (Central): Whey spray milk replacer $.2750(+1/2)-$.3800.

WHEY PROTEIN CONCENTRATE (34 percent): $1.0200-$1.4500; mostly $1.0300-$1.1200(+2).

CASEIN: Rennet $4.1400-$4.4500; Acid $4.2800-$4.5000.

Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. #The total contracts traded for Class III milk includes electronically-traded contract volumes.*Total Contracts Traded/Open Interest reflect additional months not included in this chart.

Total Contracts Traded/Open Interest

Cash-Settled NDM

136.50158.00168.00173.00171.50168.00162.00152.50147.25138.00138.00

290254187174160116

9183533739

42/1,484


Cash-Settled Butter



378511470334239153101

88715669

28/2,470

208.00196.50195.00195.60195.50195.50194.00193.00192.98193.00185.00

136.50158.00167.00171.00169.50166.00160.00151.50146.25138.00138.00

290242201215197142122105

723739

340/1,662

208.00197.00192.00194.00195.00193.50193.75193.00192.98191.00185.00

378509478341241158107

88716371

62/2,505

136.50158.00166.00168.50167.00163.50157.50150.00146.28137.50138.00

290242215219204142123111

874339

83/1,715

208.00197.00192.05194.00192.50194.00194.25193.50192.50191.50184.50

378509483354253160108

91866871

66/2,561





FEB11MAR11APR11MAY11JUN11JUL11AUG11SEP11OCT11NOV11DEC11JAN12FEB12MAR12APR12MAY12JUN12

Class III Milk#*

16.9818.7718.1517.8917.4017.3717.3417.2516.9116.6416.6016.1215.9515.9515.9815.9816.00

4,8896,3615,8274,6773,6832,6042,4182,3802,2192,0992,050

172112

93584939

2,665/39,838

17.0418.7517.6117.4917.0617.0517.2017.1716.9516.6616.6216.1215.8015.7515.8015.9015.85

4,9346,4255,8564,6693,6482,6362,4392,4082,2022,1072,033

183116

96575639

3,279/40,018

17.0018.7317.1516.9116.6216.7416.9117.0016.9216.6316.5416.0715.8015.8015.8515.9015.85

4,9346,4725,8944,6853,6782,6042,4842,4502,2402,1022,038

188125107

595739

2,299/40,273


Class IV Milk*

FEB11MAR11APR11MAY11JUN11JUL11AUG11

18.4019.8020.4521.0020.7520.5020.00

65212283291330275257

18.4019.8020.2020.7020.4520.2019.70

65212327313335305274

151/2,374

18.4019.7520.2020.0020.0020.0019.50

65212339340355305276

9/2,234

CME FUTURES for the week ended February 24, 2011


138/2,490

16.9918.5118.0617.8517.5617.4417.3817.3416.9316.5716.4416.0815.9015.9015.9815.8015.80

4,8856,3555,8894,7133,6822,6032,3922,3902,2042,0742,002

164109

93583931

2,359/39,764

18.4019.8020.4521.0520.7520.5520.01

65212282291330272257

53/2,225

136.50158.00168.00175.50171.50169.75164.00154.00147.25138.00138.00

290254189180160114

8983534038

23/1,490

208.00196.50196.50196.53196.00196.00193.75192.75193.00193.00186.00

378511465324237151

9986705369

65/2,443

Market closed

Market closed

Market closed

Market closed

http://www.gresselproduce.com



Connie Tipton is president and

CEO of the International Dairy

Foods Associaiton. She contributes

this column exclusively for Cheese Market News®.

Perspective:Industry Issues

Taking policy changes to Capitol Hill without consensus is unacceptable

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

When you identify a problem, the process usually leads you to the possibility of a solution. And I think it’s pretty clear that most of us working in or with the U.S. dairy industry recognize the problems cre-ated by our federal milk marketing order system. The solution, however, remains elusive.

For most of us, it’s not surprising that a program developed in the 1930s is out of step with today’s markets, despite the many tweaks made to the program over the years. And it’s not surprising that many agree the federal pricing system should be simplified. Moving to fewer classes, developing a competitive pay price instead of complicated and rigid formulas, and eliminating “make allowances” for manufacturers, for example, are all steps that would move us in the right direction.

What does surprise me, though, is that we still haven’t been able to find significant consensus on what the right fix would be. This lack of consensus has become especially critical now because our entire industry is facing so many market challenges and missing opportunities that could be assisted by a workable solution to this broken system.

So, why the delay? It’s certainly not for lack of trying.

For many years, our leadership at the International Dairy Foods Association (IDFA) has embraced changing this system to allow markets a greater role in setting prices for milk. In fact, in January 2007, the IDFA board of directors formed a Federal Order Strategic Planning Committee under the leadership of John Kaneb, CEO of HP Hood. By July of that year, this group of 15 top dairy executives

reached consensus on a path toward substantial reform, even though they acknowledged that the federal order system affects every manufacturer in different ways and the changes would bring consequences. Fortunately, the executives recognized that if we did not work to develop agreement with dairy producers and dairy producer organizations, our reform concepts would go nowhere.

In the following year, Bain & Co. conducted an extensive study on the global challenges and opportunities facing the U.S. dairy industry. Basing its recommendations on the study, Bain identified a clear path forward for the dairy industry, provided that U.S. dairy policies could be streamlined to promote market growth. In fact, Bain concluded that a “collective effort to reform” federal milk marketing orders was essential to position the United States dairy industry as a consistent exporter.

Recognizing the opportunities, the National Milk Producers Federation (NMPF) developed aggressive pro-posals for reform. Since then, we’ve talked and talked about directions that reform might take.

Despite much activity by joint com-mittees of IDFA and NMPF members, we appear to be no closer today to a consensus position on the reform of this cumbersome and complicated regulatory pricing system than we were four years ago. This is a real shame, because much is at stake. But the outcome will be even worse if a proposal to reform the federal order system is given to Congress to arbitrate an outcome without the consensus of the industry.

We all recognize how complex the fed-eral milk marketing orders are and agree that they must be changed. This pricing

system is fundamental to everyone’s busi-ness, producers and processors alike. But changes must be developed carefully and considered seriously because the impact on and consequences for the industry can be great.

It is, therefore, a dangerous idea to tee up changes to this system on Capitol Hill without a broad consensus that the changes will make the indus-try work better. It is doubtful that an adversarial legislative process — rife with compromises, vote trading and last-minute deals — that is driven by those who are not experts in this Byzantine system could yield an end product that is better than the one we now have. In fact, the commercial uncertainty created by a “reformed” federal milk marketing order system, combined with inevitable unintended consequences, could land the dairy industry in a far worse position than we are now. Hard to imagine? For me, the Affordable Health Care for America Act comes to mind.

Let’s face it, putting Congress in the driver’s seat on changes to our pricing policies without industry agreement is folly, or worse. Broad consensus on federal milk market-ing order changes must precede any legislative proposal taken to Capitol Hill. The old proverb, “Better the devil you know than the devil you don’t know,” certainly applies here. Without consensus, we’ll be better off with the program we have than with any new programs that might evolve. Let’s hope it doesn’t come to that. CMN

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

NEWS/BUSINESS

FDA releases report detailing drug residuesWASHINGTON — FDA has released the fiscal year 2010 annual report of the National Milk Drug Residue Data Base (NMDRD), a voluntary industry reporting program.

The report presents summary data on samples and tests conducted Oct. 1, 2009 through September 30, 2010. All 50 states and Puerto Rico submit-ted data for this report.

During this period, 3,881,478 samples were analyzed for animal drug residues. Of these samples, 1,245 tested positive for a residue. In fiscal 2009, 1,387 out of a total 3,958,455 samples of milk tested positive. In fiscal 2010, a total of 3,892,196 tests were reported on the samples for 10 different groups of families or indi-vidual drugs. Thirty testing methods were used to analyze the samples for drug residues.

Samples taken from bulk milk

pick-up tankers in fiscal 2010 totaled 3,204,371. Of these, 802 or 0.025 per-cent were positive. Samples taken from pasteurized fluid milk and milk products totaled 44,777. One of these samples, or 0.002 percent, tested positive. Producer samples totaled 545,148, and 431 of these, or 0.079 per-cent, tested positive. Other samples totaled 87,182, and of these, 11 or 0.013 percent tested positive.

Of the total positive samples, 1,213 tested positive for beta-lactams (out of 3,812,457 tests); 24 tested positive for tetracyclines (out of 23,722 tests); five tested positive for sulfamethazine (out of 27,425 tests); three tested positive for sulfonamides (out of 24,157 tests); and one tested positive for sulfadi-methoxine (out of 1,932 tests).

The full NMDRD report and re-ports from past years can be found at www.kandc-sbcc.com/nmdrd/. CMN

Nominations open for Wis. export awardsMADISON, Wis. — The Wisconsin Department of Commerce recently announced that nominations will be accepted through April 15 for the An-nual Governor’s Export Achievement Awards.

Each year, Wisconsin’s governor salutes state firms and organizations that have achieved extraordinary re-sults in international markets or have contributed to Wisconsin’s ability to compete globally. This year’s awards will be presented May 10 at the annual Wisconsin International Trade Confer-ence in Milwaukee.

Any agricultural, forestry, industrial, high technology or service enterprise successfully engaging in or assisting in the export of Wisconsin-origin products or services can be nominated. Nomi-nations can be made by an employee of the firm or organization, or by an outside person familiar with the firm

or organization. Self nominations are encouraged.

Award categories include Agri-cultural Exporter, Manufacturing Exporter, Service Exporter, High Tech Exporter and Export Assistance Provider.

Nominees must show innovation, effectiveness and special effort in growing exports and enhancing em-ployment, the economy and Wisconsin’s international prestige. Nominees will be evaluated against organizations or firms of similar size.

Submissions can be sent to the Wisconsin Department of Commerce Bureau of Export Development, 201 West Washington Avenue, Madison, WI 53703, e-mailed to [email protected], or faxed to 608-266-5551.

For more information, call the Wisconsin Department of Com-merce, 608-267-0639. CMN

Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com


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NEWS/BUSINESS

Federal government faces possible shutdown if agreement is not reached on funding levelsWASHINGTON — With current fund-ing levels set to expire March 4, the government faces a possible shutdown if Congress cannot reach an agreement by the end of next week.

U.S. House Republicans this week worked to craft a temporary government funding bill to keep the government open for two weeks after the deadline expires next Friday, but Senate Demo-crats have said they will not agree to the measure, which includes about $4 billion in spending cuts. Rather, Democrats want to keep funding at current levels.

“This would simply be a two-week ver-sion of the reckless measure the House passed last weekend,” says Jon Summers, a spokesman for Sen. Harry Reid, D-Nev. “It would impose the same spending levels in the short term as their initial proposal does in the long term.”

Summers is referring to a Continuing Resolution (CR) recently proposed by the House that would fund the govern-ment from March 1 until the end of fiscal year 2011 on Sept. 30. U.S. Rep. Hal Rogers, R-Ky., earlier this month announced a partial list of 70 spend-ing cuts that would be included in the

CR bill. The cuts, which would exceed $60 billion, include cuts from FDA’s budget, as well as from USDA’s Farm Service Agency (FSA) and the Women, Infants and Children (WIC) program. (See “Obama releases fiscal 2012 budget proposal” in last week’s issue of Cheese Market News.)

According to the International Dairy Foods Association (IDFA), despite this public stalemate, congressional leaders of both parties have been hinting at the details of negotiations taking place behind closed doors.

While publicly leaders of both parties

believe they could emerge victorious from the political fallout if a government shutdown does occur, Republican lead-ers do not want a repeat of what hap-pened in late 1995 to early 1996, when political fighting over the budget led to a government shutdown during President Clinton’s first term, IDFA says.

House Speaker John Boehner, R-Ohio, says he has been meeting with newcomers in the House Republican caucus to convince them that the CR is necessary to keep the government running, even though it likely will not in-clude $60 billion in cuts, IDFA says. CMN

Dairy exports in Wisconsin increase 28 percent in 2010 to $213.4 millionMADISON, Wis. — Wisconsin ag-ricultural exports increased by 36 percent to $2.41 billion in 2010, a record high, according to a recent re-port from the Wisconsin Department of Agriculture, Trade and Consumer Protection and the Wisconsin Depart-ment of Commerce.

Cereal grains comprised the most exports with a 112-percent increase to $515.9 million. Dairy-related exports ranked second among Wisconsin’s exports with a 28-percent increase from 2009 to $213.4 million.

Rounding out the top five Wisconsin exports for 2010 were “miscellaneous

food” including ingredients, sauces, yeasts, soups and mustards; baking-related exports; miscellaneous grain seed; and fruits.

Total Wisconsin exports in 2010 increased 18 percent to $19.78 billion. Industrial machinery continues to be Wisconsin’s top manufacturing export commodity, growing by 13 percent to $6.3 billion.

“I salute Wisconsin companies for aggressively seeking new markets around the globe,” says Wisconsin Gov. Scott Walker. “As governor, I’m committed to doing all I can to sup-port a climate that encourages suc-cess for our exporters.” CMN

USDA data show number of U.S. dairy farms declined in 2010, falling to 62,500 operationsWASHINGTON — The number of dairy operations in the United States con-tinued its decline in 2010, falling from 65,000 operations in 2009 to 62,500 operations in 2010, according to recent data released in USDA’s National Ag-ricultural Statistics Service’s (NASS) “Farms, Land in Farms, and Livestock Operations 2010 Summary.”

The declines continue to be seen in the small farm categories while the number of herds with 200 or more cows increased in 2010.

NASS reports the number of farms with one to 29 cows fell from 20,400 operations in 2009 to 20,000 opera-tions in 2010, while the number of operations with 30-49 cows fell from 11,500 to 11,000 operations between 2009 and 2010. Operations with 50-99 cows fell from 17,300 to 15,500, and operations with 100-199 cows held steady at 8,600.

Operations with 199 or fewer cows produced 26.3 percent of the nation’s milk in 2010, down from 28

percent of the nation’s milk in 2009. In 2010, 30.5 percent of the nation’s cows were found on operations with 199 or fewer cows, compared to 32.1 percent in 2009.

Meanwhile, the number of dairies with 200-499 cows climbed by 150 to 4,000 operations in 2010. These operations represent 12.7 percent of the nation’s 2010 milk production and were home to 12.8 percent of the nation’s cows.

There were 1,720 operations with 500-999 cows in 2010, up 20 from the previous year. These dairies, accord-ing to NASS, represent 13.0 percent of 2010 U.S. milk production and 12.6 percent of the nation’s dairy cow inventory.

The number of dairies with 1,000-1,999 cows climbed by 10 to 920 operations in 2010. These operations represent 15.5 percent of 2010 U.S. milk and 13.3 percent of 2010 dairy cow inventory.

Operations with 2,000 or more

cows climbed by 20 to 760 such opera-tions in 2010. These dairies produced 32.5 percent of the nation’s milk in 2010, 1.3 percent more than did this

category of dairies in 2009. NASS says dairies with 2,000 or more cows were home to 30.8 percent of the nation’s dairy cow inventory in 2010. CMN

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OMAHA, Neb. — The University of Nebraska-Lincoln’s Food Processing Center will hold its National Small Food Manufacturer Conference May 23-24 in Omaha, Neb.

Keynote speakers will include Jona-than Miller, who will present “Swimming with the Sharks!” Miller is president of Element Bars Inc., Chicago. He was featured on an episode of ABC’s Shark Tank, and will discuss how he survived swimming with the sharks and the end result for his business.

Steve Taylor also will present “Is It Possible to Say Too Much?” Taylor is a professor in the Department of Food Science and Technology and director of the Food Allergy Research and Resource Program at the University of Nebraska.

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He will discuss proper use and misuse of allergy statements, allergy advisory statements and “free-from” statements on food packaging.

Additional session topics include “What Can Social Media Do for Your Company?” “How to Succeed at Trade Show Exhibiting,” “Food Safety Systems for the 21st Century” and “Understand-ing FDA Regulations.”

The registration fee is $199 if regis-tered before April 1 and $249 thereafter. The registration deadline is May 15. Space is limited and early registration is encouraged.

For additional information, con-tact Jill Gifford at 402-472-2819, e-mail: [email protected] or visit www. fpc .un l . edu /ns fmc . CMN

New Zealand’s University of Otago study links school milk to reduced risk of bowel cancerDUNEDIN, New Zealand — Research-ers at New Zealand’s’ University of Otago recently published a study that suggests regular consumption of school milk significantly reduces the risk of bowel cancer in adulthood.

The study, published in the American Journal of Epidemiology, found that the risk of bowel cancer was 30 percent lower in people who drank school milk daily. The reduction in risk was greatest in those who drank 1,200 or more half-pint bottles of milk while in school.

The researchers say they believe the calcium provided by the free milk-in-schools program from 1937-1967 may be responsible for the dramatic reduction in risk of bowel cancer that has occurred in New Zealand for people born between 1938 and 1953. They note studies in adults have suggested that calcium consump-tion may reduce bowel cancer risk.

“The research team is currently planning further research which, if funding can be obtained, could confirm that the provision of milk at school can

significantly reduce the risk of bowel cancer in future generations,” says study author Brian Cox, associate professor

and director of the Hugh Adam Cander Epidemiology Unit at the University of Otago Medical School. CMN

3-A certificate data now available onlineMCLEAN, Va. — 3-A Sanitary Standards Inc. (3-A SSI) now offers online access to all information listed on current 3-A Symbol authorization certificates.

For the first time, the public can use the searchable database to find a complete list of specific models/names authorized to display the 3-A Symbol for more than 500 licenses.

According to the company, the public information on 3-A licensees is important because it shows all equipment that conforms to 3-A Sanitary Standards for dairy and food processing equipment.

Certificate data for all 3-A Symbol

licensees is searchable by:• Standard number/Equipment type

— All of the licensees under a specific standard number or type of equipment are available in alphabetical order by company name.

• Company name — A list of all licenses or certificates is available by company name.

• Authorization or certificate number — The unique number that is assigned to a licensee or certificate.

The search feature allows the user to print a copy of the sam-ple certificate of interest. CMN

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NEWS/BUSINESS


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HEERLEN, Netherlands — Royal DSM N.V., a global life and materials sciences company, this week intro-duced a new logo and company brand, “Bright Science. Brighter Living.” The new brand is symbolic of the transi-tion to the “new” DSM, according to company officials.

DSM notes that as the transforma-tion of the company from a chemical company into a life sciences and materials sciences company active in health, nutrition and materials is complete, a new corporate brand is a logical step.

“It demonstrates very clearly — to customers, suppliers, shareholders, the communities in which the com-pany works as well as to DSM employ-ees — that DSM has turned a page,” says Feike Sijbesma, chair and CEO of the DSM managing board.

Sijbesma says the new brand is a reflection of the overall positioning of the company. It stands for the DSM strategy, DSM culture and the way DSM wants its employees to work together.

In addition, it represents the company’s sustainability value (work-

DSM introduces new company brand, logo

ing with a triple bottom line of people, planet and profit) and fits with the DSM mission to create brighter lives for people today and generations to come, Sijbesma adds.

“With the portfolio restructuring completed, with our new strategy that focuses on growth, with the culture change on the road, and with our One DSM philosophy, this is the time to mark the new DSM, internally and externally,” Sijbesma says.

With the new brand comes a new logo. The new logo conveys brightness, and the mix and overlay of colors represents the diversity of DSM employees and the unique combination of DSM global talents and technologies, working together to create innovative and sustainable solutions in a variety of businesses, Sijbesma says.

F o r m o r e i n f o r m a t i o n , visit www.dsm.com. CMN

‘Nutrition Keys’ labeling system launchedPHOENIX, Ariz. — Several food and beverage manufacturers and retailers recently launched “Nutrition Keys,” a new voluntary front-of-pack nutrition labeling system. The Nutrition Keys program was developed in response to a request from First Lady Michelle Obama in March 2010. The boards of directors of the Grocery Manufacturers Association (GMA) and Food Marketing Institute (FMI) adopted a joint resolu-tion in support of the Nutrition Keys initiative at their Jan. 23 joint board meeting.

“Food and beverage companies have a strong track record of provid-ing consumers with the products, tools and information they need to achieve and maintain a healthy lifestyle, and this program represents a significant milestone in our ongoing effort to help consumers construct a healthy diet,” says Pamela G. Bailey, president and CEO, Grocery Manufacturers Associa-tion (GMA).

The Nutrition Keys program will place nutrition information such as calories, saturated fat, sodium and total sugars content on the front of packages. The information will be presented in a

fact-based, simple, easy-to-use format. The icon will inform consumers about how the key nutrients in each product fit into the diet as part of the federal government’s daily dietary advice.

The Nutrition Keys icon on some product also will display information about “nutrients to encourage,” such as potassium, fiber, vitamin A, vitamin C, vitamin D, calcium, iron and protein.

Companies will begin to place the icon on their products in 2011 accord-ing to seasonality and production schedules. Consumers will begin to see the Nutrition Keys icon on prod-ucts in the next few months, and the number of products that carry the icon will continue to grow throughout the year.

To build consumer awareness and promote use of the icon, food and beverage manufacturers and retailers have agreed to support the change with a widespread consumer education campaign. Participating manufacturers and retailers will initially invest at least $50 million in an advertising, public relations and in-store marketing cam-paign aimed at those who serve as the primary shopper for their family. CMN

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Raw milk processing classes discontinued MONTPELIER, Vt. — Classes on pro-cessing raw dairy products held by the advocacy group Rural Vermont have been suspended after the group received a notice of warning from the Vermont Food Safety and Consumer Protection Division.

The warning letter dated Feb. 10 says the classes violate the state law that limits the sale of raw milk to the end us-ers for fluid consumption only. The law also requires that a person in the dairy processing business must hold a valid milk handlers license.

“Cheese distributed in commerce (served to the class) would fall into that category,” the letter states. “Also raw milk cheeses need to age at least 60 days under specific conditions before they

can be sold.”The letter adds that the classes

encourage farmers to break the law by selling milk to be processed to unlicensed persons.

Rural Vermont says it has been hold-ing these popular classes since 2009. The group says not wanting to place farmers at risk, it has put the classes on hold while pursuing discussions with state officials and waiting until it has a solid understand-ing of the agency’s official policy.

“Rural Vermont believes that the Agency of Agriculture should be engaging farmers in ways to expand markets,” the group says in a statement on its website. “Vermont should focus on achievable steps to meet the demand for safe, healthy local food and farm products.” CMN

Mexican processors commit to Process ExpoMCLEAN, Va. — The Food Process-ing Suppliers Association (FPSA) has reached an agreement with the Mexican National Chamber of Food Processors (Cámara Nacional de la Industria de Conservas Alimenticias or CANAINCA) to support Process Expo 2011, to be held Nov. 1-4 in Chicago.

As it has done throughout the previous 15 years, CANAINCA will promote the biennial tradeshow to its member companies and bring a delegation to Chicago. In addi-tion, CANAINCA will help develop the educational programming for the fruit and vegetable track of the Seminario de Innovaciones, Process Expo’s day-long seminar for Latin American attendees on Oct. 31.

“CANAINCA has long been an im-portant partner of FPSA and Process Expo,” says Scott Scriven, chairman

of FPSA and president of Weber Inc. “Their members are the top decision makers at some of the most promi-nent food processing companies in Mexico, and as such, they are one of the most important groups in at-tendance at Process Expo. We look forward to once again hosting their delegation.”

Armando Cobos, executive direc-tor, CANAINCA, also notes that the chamber’s partnership with Process Expo has generated special opportu-nities for its members.

Registration for Process Expo 2011 now is open. Companies inter-ested in exhibiting should contact Grace Cular Yee, FPSA director of sales at [email protected].

A complete list of exhibitors and the updated floor plan for Process Expo 2011 can be found at www.myprocessexpo.com. CMN

GMA creates a new divisionWASHINGTON — The Grocery Manu-facturers Association (GMA) recently announced it has created an Industry Affairs and Collaboration division as part of a restructuring process aimed at enhancing member services and organizational efficiencies.

The new division takes the place of the former GMA Industry Affairs, Membership Services, and Meetings divisions. The staff of each of these former groups have been assigned to new roles under the Industry Affairs and Collaboration banner.

The Industry Affairs and Collaboration division will continue to support GMA’s focus on product safety, health and nutri-tion, environmental sustainability and global commerce, with a special emphasis on facilitating industry collaboration and efficiency on these and other matters. The group also will work cross-functionally to help identify and execute opportunities for business development and to provide service to the GMA membership. CMN

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NEWS/BUSINESSFebruary 25, 2011 — CHEESE MARKET NEWS® 9


DALLAS — Pizza Hut Inc. last month announced a plan to create model mar-kets in New Orleans and Baton Rouge, La. The two cities will become flagship markets for the company as it invests $10 million or more over the next 18 months to establish state-of-the-art restaurants to serve the community. The company is working in partnership with the National Urban League and the Urban League of Greater New Orleans to help with renewal and economic development.

“Pizza Hut is totally committed to making our restaurants in New Orleans and Baton Rouge the best in the country. We will build brand new restaurants over the next 18 months, replacing all exist-ing restaurants with state-of-the-art facilities to best serve our customers,” says Scott Bergren, president, Pizza Hut. “We are very pleased to partner with the national Urban League and believe our investment is both good

Pizza Hut Inc. announces plans to create model markets in New Orleans, Baton Rougebusiness and will stimulate economic development.”

Pizza Hut currently is in a legal dis-pute with Larry Lundy, a former franchi-see for these two markets who operated 44 Pizza Hut restaurants in Louisiana before his franchise agreement was terminated earlier this year.

Pizza Hut says in a statement, “The owner was unable to meet certain financial obligations to federal, state and local taxing authorities, and also left other corporate obligations unpaid. As a result, the franchised Pizza Hut restaurants in these two markets have closed and will not reopen.”

Pizza Hut Inc. has started identifying

optimum locations and is beginning to build new restaurants in these new loca-tions. Once the restaurants are opened and operating, Pizza Hut will work with the National Urban League to seek a new franchisee for the markets. In the short term, displaced employees will be offered job counseling, training, career placement and other forms of assistance by the Urban League of Greater New Orleans, which also serves the Baton Rouge market.

Pizza Hut has committed to spend $1 million with the National Urban League and the Urban League of Greater New Orleans for this training and counseling. Long-term, the company says it is com-

mitted to rehiring former employees as the new restaurants come on line.

“We are pleased and honored to part-ner with Pizza Hut as they revitalize New Orleans and Baton Rouge with a signifi-cant investment in the community and conduct extensive employee training, job counseling and placement,” says Marc H. Morial, president and CEO, National Urban League.

“Pizza Hut’s investment is an additional shot in the arm to re-vitalize New Orleans and Baton Rouge, and will help create jobs and stimulate the economy,” says Nolan Rollins, president and CEO, Urban League of Greater New Orleans. CMN

Pizza team trials to be at Wisconsin Restaurant Expo MILWAUKEE — The U.S. Pizza Team Trials will be held during the 2011 Wis-consin Restaurant Expo March 21-23 in Milwaukee.

According to event coordinators, the U.S. Pizza Team is comprised of the best pizza artists, pizza throwers, fastest pizza makers and largest dough stretchers in the country. The team demonstrates and competes in pizza events throughout the nation and in-ternationally.

The Wisconsin Restaurant Expo will host three days of competition activity to determine who will be the newest additions to the team. Two winners from the expo’s competition will advance to become part of the team and compete in Rome at an International Pizza Competition.

Events will include:• Largest Dough Stretch — Contes-

tants have five minutes to stretch out a large dough ball as big as they can. Arms, legs, and head are allowed, but no rolling pins.

• Fastest Pizza Maker —This is a race to stretch out five dough balls as quickly as possible. No sauce or cheese required.

• Freestyle Acrobatics — Con-testants perform an acrobatic dough tossing routine to music, incorporating tricks such as over the shoulder, under the leg, and behind the back.

• Boxfolding — Contestants race against the clock to fold five pizza boxes.

• American Pizza Championship — Pizzas are judged on appearance, taste and viability.

The expo offers the last chance in a national series of qualifiers to earn a spot on the team. The U.S. Pizza Team Trials event is presented in partner-ship between PMQ Magazine and the 2011 Wisconsin Restaurant Expo. CMN

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NEWS/BUSINESS


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ROSEMONT, Ill. — Dairy producers continue their efforts to revitalize the pizza category through partnerships with Domino’s Pizza and other chains, including Pizza Hut, according to Dairy Management Inc. (DMI), which manages the national dairy checkoff program.

According to DMI, pizza remains a critical sales driver for dairy produc-ers because more than 25 percent of all cheese is used on pizzas.

DMI notes that dairy producers’ investment in the pizza category has resulted in 1.9 billion pounds of incremental milk use for the period of January-November 2010 vs. the same

Dairy producers work with pizza companies to revitalize pizza category, cheese salesperiod in 2009.

In addition, according to data from the NPD Group, a market research firm, pizza servings in the quick-ser-vice restaurant (QSR) pizza category increased by 4 percent in 2010 vs. the previous year; the positive growth reverses a downward trend of the previous 4-5 years.

Noting its work with Domino’s, DMI says in the first three quarters of 2010, Domino’s same-store sales results were 14.3 percent, 8.8 percent and 11.7 per-cent higher than the prior year, accord-ing to Domino’s earnings results.

According to NPD data, Domino’s pizza servings increased 16 percent in

2010, and, according to DMI, Domino’s supply chain says its cheese sales in-creased more than 20 percent in 2010 vs. the previous year.

Also in 2010, Domino’s worked with the dairy checkoff to introduce the new-est addition to its American Legends line, the Wisconsin 6 Cheese pizza, which features Mozzarella, Provolone, Cheddar, Feta, Parmesan and Asiago cheeses. DMI notes this is the only new product Domino’s introduced to its menu for the 2010 year.

In 2010, the dairy checkoff also supported Domino’s two carryout promotions, requiring nearly 20 mil-lion pounds of milk for each weeklong

national promotion, DMI says, noting this type of support will continue in 2011 and drive additional sales.

In 2011, dairy producers will con-tinue to invest in Domino’s efforts to develop dairy-centric items through activities including market research and culinary support.

In 2010, national local dairy checkoff staff also worked with Domino’s to increase distribution of Domino’s Smart Slice throughout U.S. schools. The line of pizzas uses reduced sodium and reduced-fat Mozzarella and features whole-wheat crust and other reduced-fat and re-duced-sodium toppings.

The Smart Slice lunch program is active in more than 120 school districts and 1,100 schools nationwide. DMI says

Turn to REVITALIZE, page 11 D

XLT Ovens teams up with Domino’s to set speed record for baking pizzas WICHITA, Kan. — XLT Ovens recently announced that a Domino’s Pizza dealer in Findlay, Ohio, produced 206 medium cheese pizzas in an hour using one of its ovens, setting a new world record for the number of pizzas baked in one hour.

Domino’s franchise owner Brian Elder broke the previous Guinness World Record of 168 pizzas during a Domino’s 50th anniversary event that took place Dec. 9.

Elder, who trained for three months for the event, also has competed several times with the U.S. Pizza Team at the World Pizza Championship in Italy and has won the title of fastest pizza maker at several national and international competitions, according to the Toledo Blade, which originally reported the record-setting event.

Proceeds from his pizza sales were donated to the United Way of Hancock County and the City Mission of Findlay.

“XLT’s ovens are again making his-tory,” says Peter Goodman, XLT vice president of sales.

Wolfe Electric, the parent company of XLT Ovens, was founded in the mid-1940s by Roy Wolfe. The four-gen-eration company first manufactured consumer and commercial fan systems and refrigeration products.

In the 1980s, Wolfe Electric began refurbishing ovens for a major pizza chain, quickly learning the strengths and weaknesses in oven design. This experience became the foundation for the expertise that goes into every oven the company manufactures today, company officials say.

F o r m o r e i n f o r m a t i o n o n XLT, call 888-443-2751 or vis-i t w w w. x l t o v e n s . c o m . C M N

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REVITALIZEContinued from page 10


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New promotion from Domino’s to feature chicken productsANN ARBOR, Mich. — For the first time since 2002, Domino’s Pizza is launching a national promotion around its chicken products.

Available for delivery and carry-out, the newly revamped chicken products include boneless chicken and wings ac-companied by a new national campaign that shares the story of an “unlikely, hopeful hero” within the Domino’s test kitchen.

“We want to continue innovating, and reinventing our menu and brand, and our new chicken is the next chap-ter of our story,” says J. Patrick Doyle, Domino’s Pizza president and CEO. “Not only are our new boneless chicken and wings much improved based on custom-er feedback, but we are again opening our doors and letting consumers see the real people behind the real story talk about how this came about.”

The “real person” behind the story is Tate, which Domino’s describes as a secluded chicken chef within a pizza company. Tasked with an opportunity to execute the reintroduction of a product not often at the forefront of the minds of Domino’s customers, Tate’s story is the highlight of a campaign designed to take consumers through the challenges and triumphs of leading such a project.

Beginning March 2, coinciding with the start of the TV campaign, consumers will be able to provide their feedback on the new chicken, as well as view the full documentary about Tate by visiting more.dominos.com. CMN

in 2011, dairy producers will continue to support Domino’s sales and mar-keting efforts to expand the program in school lunch and summer feeding opportunities.

The dairy checkoff also is working with Pizza Hut to grow sales growth through various cheese-centric prod-ucts and promotions, DMI notes.

Last fall, Pizza Hut launched a new premium “Big Italy” pizza that used 50 percent more cheese than an average 16-inch round pizza.

Just last month in time for the Super Bowl, Pizza Hut introduced the Big Dip-per, nearly 2 feet of pizza cut into 24 strips for dipping into marinara.

The company also countered com-petitive pricing in 2010 with $6 medium pizzas in December and continued that pricing with “Big Mondays” in January, during which customers can get a me-dium pizza with up to three toppings when you buy 2 for $6.

DMI says Pizza Hut has started off 2011 with a focus on cheese, and this, as well as its partnership with the dairy checkoff, will con-tinue throughout the year. CMN

COSTA MESA, Calif. — EPS Corp., an energy intelligence company based here, this week announced that Kraft Foods Inc. is expanding the deployment of EPS’ xChange Point real-time energy management and carbon reduction solution to all of the manufacturing facilities in its Grocery Business Unit.

The decision by Kraft to roll out xChange Point to additional sites was based on the success of its initial implementation in one facility. The test yielded significant savings opportunities as well as the desire to accelerate further reductions in the Business Unit’s energy use and carbon emissions as part of the company’s global sustainability efforts,

Kraft expands deployment of EPS Corp.’s xChange Point systemaccording to Diane Wolf, global vice president of safety and environmental sustainability, Kraft Foods.

“Achieving continual reductions in energy use and carbon emissions at our manufacturing facilities is a top strategic priority for Kraft Foods,” Wolf says. “We are pleased with the results that xChange Point already has delivered to our Grocery Busi-ness Unit and by rolling it out to the rest of the unit’s manufacturing facilities, we see it as a key tool to help us reach and exceed our corporate sustainability goals.”

EPS’ xChange Point system uses real-time, enterprise-wide data, together with recommendations by EPS experts, to reduce energy and water use as well

as carbon emissions. The software as a service solution provides an enterprise-wide view of sustainability and production metrics that can help curtail costs while improving sustainability at facilities across the company, making it a power-ful solution for leading global companies to understand and reduce their energy, water and carbon profiles, according to Jay Zoellner, CEO, EPS Corp.

“This is especially rewarding for us because Kraft Foods is not only a leader in the food industry, but also in sustainability,” Zoellner says. “We are very confident about the ability to further advance their sustainability successes with this rollout of our solution.” CMN

http://www.castlecheeseinc.com



NEWS/BUSINESS


ROSEMONT, Ill. — A new cheese study — which was designed to determine the differences between analytical sodium and label sodium as well as identify areas for the industry to adopt best practices — was initiated after the Innovation Center for U.S. Dairy Health and Well-ness Committee identified the need for a large, independent, blinded retail analy-sis of the sodium content in cheese. It was spearheaded by the Dairy Research Institute and published online prior to print publication in the March issue of the Journal of Dairy Science.

The study found that sodium levels vary among cheese types as well as with-in different brands of the same cheese type. There also are variations based on

New study finds actual sodium content may vary from what is on manufacturers’ labelscheese form (for example, shredded or string) and differences from sample to sample. Cheeses analyzed include the most commonly consumed cheeses — Cheddar, Mozzarella and process cheese.

In addition, study results indicate manufacturers tend to be conservative with reporting higher sodium levels on the label, as analytical levels are most commonly below the label declara-tion, but within allowable reporting standards.

“These research findings already are being used to develop industry-adopted best practices to minimize variability in sodium content, which then needs to be reflected in labeling,” says Nigel

Kirtley, vice president cheese research, development and quality for Kraft Foods, and member of the Health and Wellness Committee for the Innovation Center for U.S. Dairy. “The industry will continue to use the findings to develop guidance and support to help manufacturers put this information into action for better process controls that will allow for consistently lower sodium and improved quality.”

On behalf of the Innovation Center for US Dairy, the Dairy Research Insti-tute says it administers cheese research efforts — such as addressing cheese and sodium — to help industry meet consumers’ health and wellness needs. The two organizations are working in

partnership with industry to establish best practices in cheesemaking process controls that minimize variability and improve manufacturers’ ability to re-duce the sodium content of cheese.

“While cheese contributes less than 8 percent of the sodium in the U.S. diet, the Dairy Research Institute and our industry partners continue to investigate process improvements and solutions that industry can employ to help Americans manage their sodium consumption,” says Gregory Miller, president, Dairy Research Institute and executive vice president, National Dairy Council. “To move forward with goals to reduce sodium in cheese or attempt to meet arbitrarily predetermined target levels, the industry must determine where sodium levels currently stand through benchmark studies.”

According to according to Bill Graves, senior vice president of product research, Dairy Research Institute, the analysis shows that difficulties in achieving uniform salt distribution in commercial settings stems from a variety of factors.

“To date, research does show a number of approaches available to improve consistency, including greater formalization of cheesemaking steps and operations, improved design of equipment for uniform curd distribu-tion and block forming, and improved quick and easy testing methods to check sodium levels during production,” Graves says. “Continued evaluation of best methods to reduce sodium and establish process controls are underway with cooperation among universities and dairy industry partners.” CMN

Gatti’s opens Texas pizza location againAUSTIN, Texas — Mr. Gatti’s LP has an-nounced the re-opening of its Belton, Texas, location under a new franchise agreement with Papanana Enterprises Inc.

New owner Glenn Deringer is rejoin-ing the Gatti’s Pizza franchise family. After getting reacquainted with the Gatti’s brand and undergoing a training program offered by Gatti’s Corporate Support Center, Deringer re-opened the Belton location last month.

“We are thrilled to bring a new level of excitement to Belton,” says Mike Mrlik, CEO, Mr. Gatti’s, LP. “We are excited to have Glenn Derringer, as he will provide a family-friendly atmosphere with a one-of-a-kind experience filled with food that comforts your soul. People still have incredibly fond memories of the brand. Before we even opened, customers were anxiously anticipating the re-opening.”

Mrlik notes that by the end of the company’s fiscal year in April, Gatti’s will have 130 restaurants in 11 states.

Through its Gatt’s Pizza and Gat-tiTown locations, Mr. Gatti’s LP offers dine-in, pick-up and delivery options at each of its stores throughout the South-west, Southeast and Midwest. CMN

http://www.adpi.org




Award-winning, all-natural cheese

BUFFALO, N.Y. — Lactalis Food-service recently announced that the popular Italian cheese brand Galbani now is available in the United States. Additionally, 27 of the best-performing cheeses from Lactalis Foodservice now are being distributed under the Galbani label, including cheeses from Sorrento, Prima Cucina and Mozzarella Fresca.

“We are extremely pleased to be able to offer premium Galbani brand cheese to chefs and operators coast to coast,” says Tim Wellenzohn, market-ing manager, Lactalis Foodservice. “Our unparalleled Italian cheese of-fers the uncompromising standards of quality and authenticity, from flavor to application, that Italians have already

Lactalis Foodservice brings Galbani to U.S.come to know and love and that we know our customers will embrace.”

Galbani was founded in 1882 by Egi-dio Galbani, whose passion for crafting fine Italian cheese was widely recog-nized. Lactalis officials say applications for Galbani Mozzarella are limitless, as it was born to stretch, melt, blend and brown with amazing proficiency. Galbani Fresh Mozzarella is best known for its creamy, white appearance, firm body and smooth texture, as well as its milky flavor and superb application performance, Lactalis officials add. Other products from Galbani include Mascarpone and Ricotta.

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

VANCOUVER, Wash. — Papa Murphy’s Take ‘n Bake Pizza this week announced it was named to Franchise Business Review’s list of top food franchises for 2011 based on high satisfaction ratings in a survey of its franchise owners.

Eric Stites — president and CEO of Franchise Business Review, a national franchise market research firm — notes that many of the award-winning compa-nies have maintained great satisfaction scores throughout the recession and only continue to improve.

“It’s very telling when you see a franchisor with impressive franchisee satisfaction even when the economy is struggling,” he says.

The survey asked franchise owners 33 benchmark questions relating to the franchisee’s experience and satisfaction as well as market area, business lifestyle and other demographic questions.

Papa Murphy’s named a top food franchisePapa Murphy’s, based in Vancouver,

Wash., is the fifth-largest pizza chain in the country and the “pioneer” of the take ‘n bake pizza segment, the company says.

Papa Murphy’s notes that, as in years past, it outscored the average of all other food industry participants in all categories.

“For the franchisee-franchisor rela-tionship to be successful, it needs to be a true partnership where each party re-spects and trusts the other during both the good and bad times,” says John Barr, CEO, Papa Murphy’s. “I’m very proud of the relationship we have with our fran-chise partners and am pleased to see that they feel the same about us.” CMN

Danisco announces global expansion of Yo-Mix culturesCOPENHAGEN, Denmark — Follow-ing success in China, the Middle East and North Africa, Danisco says it is expanding its Yo-Mix yogurt cultures globally.

The yogurt cultures are designed to meet the need for a culture that produces only mild acidification during storage. Company representatives note acidification has been seen as a major issue throughout the world for yogurt producers, as the yogurt will have a dif-ferent sensory profile at the beginning and end of its shelf life.

Company officials also say this can be a problem in areas such as Asia, North Africa, the Middle East and South America, where cold storage and cold chains are less controlled and often broken.

With a combination of careful strain selection and process “know-how,” Danisco’s Yo-Mix yogurt cultures can produce yogurt with low past-acidifica-tion in different processing and storage conditions.

“Yo-Mix can now produce yogurt with a very pleasing flavor, a high level of viscosity and short texture, with limited post acidification under a wide range of temperature conditions, which has definitely contributed to its customer success since launch,” says Sonia Hup-pert, Yo-Mix global business director. “The plans for expansion into different countries are progressing very well and we are very pleased with this brilliant example of sharing knowledge between regions, demonstrating Danisco is leveraging its truly global presence as an ingredient solutions provider.”

For more information, contact Richard Donovan, communications manager at [email protected] or Sonia Huppert, Yo-Mix global business director, at [email protected]. CMN

http://www.foremostfarms.com



NEWS/BUSINESS



BRUSSELS, Belgium — Piacentinu Ennese, a protected designation of origin (PDO) sheep’s milk cheese from Italy, recently became the 1,000th name to be registered under the Euro-pean Commission’s (EC) agricultural product and foodstuff quality labels.

Piacentinu Ennese PDO is a cheese from the province of Enna in Sicily, Italy. The compact pressed cheese is made from raw sheep’s milk and saf-fron (also from Enna). It comes in a cylindrical shape and tends to be an intense yellow due to the saffron pres-ence. The sheep are grazed on uplands

Italian cheese Piacentinu Ennese is 1,000th name registered by European Commissionand supplemented by fodder hay, straw and wheat stubble. The cheese owes its specificity to the use of saffron, the pastures and the practices of local producers.

Agricultural products and food-stuffs produced in specific regions or with specific characteristics have been registered by the European Union since 1992. Applications have increased in recent years.

“The 1,000th name registered is a significant milestone for the quality schemes. There is still great potential for these schemes that give visibil-

ity to Europe’s quality products and valorise agricultural traditions and rural heritage,” says Dacian Ciolos, EU commissioner for Agriculture and Rural Development.

The EU quality registers for ag-ricultural products and foodstuffs include PDO, which covers names of products that owe their characteristics exclusively or essentially to their place of production; protected geographi-cal indications (PGI), which covers agricultural products and foodstuffs whose reputation or characteristics are closely linked to production in the geographical area; and traditional specialties guaranteed (TSG), which

includes product names that guarantee the traditional character, either in the composition or means of production but are not linked to any particular location.

The EC currently is discussing a proposal that would strengthen these schemes.

“The EU’s quality schemes are the cornerstone of the Commission’s Quality Package currently in discus-sion in Parliament and Council,” Ciolos says. “With this proposal we reinforce the PDO-PGI schemes, in particular increasing the role and responsibilities of groups, and breathe new life into the TSG scheme.” CMN

COLUMBIA, Mo. — Market support for dairy could change very little under a hypothetical World Trade Organiza-tion (WTO) agreement, according to a report recently published by The Food and Agricultural Policy Research at the University of Missouri (FAPRI). The report, “WTO Domestic Support Measures: How Accounting Rules and Market Circumstances Matter,” details a framework developed by FAPRI to evaluate how a future WTO agreement on domestic support policies might af-fect U.S. farm programs.

The United States and other WTO members have made commitments to limit various types of support they pro-vide their domestic agricultural sectors. As the Doha Round of WTO negotiations continues, it is unclear what form any final agreement might take.

While public discussion has focused on headline indicators such as the level

FAPRI report offers framework on how WTO agreement could affect U.S. farm programs

of “overall trade-distorting support,” it is possible that limits on product-specific support could be more important in practice, the FAPRI report says.

The hypothetical agreement used in the report is based on a “draft mo-dalities” paper submitted in December 2008. The report assumes that an agree-ment would take effect in 2012 and be fully implemented before 2018.

Under FAPRI’s hypothetical Doha agreement, total current AMS (aggre-gate measure of support) commitments would be reduced from $19.10 billion in 2008 to $12.99 billion in 2013 and further to $7.64 billion in 2018. Dairy AMS commitments would be capped at $4.67 billion by both 2013 and 2018.

In 2008, the United States reported a total current AMS of $6.26 billion, far less than the commitment of $19.10 billion. Dairy, sugar and cotton account for almost the entire reported support. FAPRI’s projections for total product-specific AMS under a hypothetical WTO agreement and current reporting of crop insurance benefits are $5.39 bil-lion for 2014 and $2.99 billion in 2018, representing the average of 500 possible outcomes in the FAPRI-MU stochastic baseline prepared in early 2010.

U.S. dairy AMS in 2008 was $3.97 bil-lion, and its projected baseline average is $2.99 billion in 2013 and $3.19 billion in 2018 under the hypothetical agree-ment. Dairy is not projected to exceed WTO commitments, nor is it projected to require any reduction in support at any time under the hypothetical agreement.

FAPRI stresses that it is unclear whether there will even be a Doha agree-ment, let alone what the terms might be, and the figures reported should not be interpreted as a prediction of what an agreement will look like, nor of what it will imply for policy choices. Examining a hypothetical agreement, however, does help identify and illus-trate a number of important issues, FAPRI says.

To read the report, visit www.fapri.missouri.edu. CMN

http://www.cfs.com




Toray Membrane USAContacts:

By Alyssa Sowerwine

MADISON, Wis. — Barrie Lynn Krich doesn’t just love to eat cheese, she loves talking about it too.

Krich, known to many as “The Cheese Impresario,” is an educator on all things cheese. A former advertis-ing executive with a love of food and wine, her passion for artisanal cheese came about when she took a client to a Slow Food fundraiser and from there, she decided her mission was to educate others about the pleasures of cheese.

Now Krich is hosting “Cheese Rules,” an online video series fea-tured on Small Screen Network at www.smallscreennetwork.com/cheeserules. The series, which first was shot in Seattle on Oct. 12, 2010, at Chef Kathy Casey Food Studios, features 3- to 5-minute episodes on topics ranging from “How to Store Cheese,” to “To Rind or Not to Rind.”

“There’s an element of the joy of discovery when people learn about the diversity of artisanal cheeses — how to entertain with them, how to cook with them and how to pair beverages with them,” Krich says. “Cheese apprecia-tion is much like music appreciation; once you learn to listen, so much more opens up.”

And interest in the consumer market has opened up as artisan cheese has made the leap from spe-cialty cheese shops to mainstream grocery stores across the country, Krich notes.

“We are in the middle of such an exciting time for experimenting with so many previously unheard of Ameri-can cheeses, all widely available,” Krich says. “But who really has the confidence to know what goes with Dolcina Gorgonzola, Raspberry Bel-laVitano or an aged Asiago?”

With this in mind, “Cheese Rules” was developed to educate and fuel the passion of cheese lovers everywhere, she adds.

“The whole concept is ‘education is everything,’” Krich says.

Sartori Foods, Plymouth, Wis., has sponsored episodes of the show. Chad Vincent, chief marketing officer, Sar-tori Foods, says the company decided to sponsor because they believe in what the show is doing.

“I met Barrie Lynn about a year ago and was impressed with her knowledge of cheese and passion to spread the word,” Vincent says. “I think the show is a great way to increase the learning and education for consumers on artisan cheese.”

While some of Sartori’s cheeses have been featured on the show, Vin-cent notes that it is not a motivating factor in their sponsorship.

“From Sartori’s standpoint, we support the show as a way to help the industry in general gain more visibil-

‘Cheese Rules’ online video series teaches viewers about cheese varieties and pairingsity,” he says. “We want to get cheese on every plate. It’s great if it’s ours, but really we just support the exposure of these artisan cheeses.”

Krich also is quick to put out that Small Screen Network does not dictate the cheeses she features on the show.

“It ’s not an infomercial for certain types of cheese or certain companies,” she says. “We want to be authentic and introduce people to the world of cheeses available to them.”

Dodgeville, Wis.-based Uplands Cheese’s Pleasant Ridge Reserve also has been featured on the show. Andy

Hatch, cheesemaker and general man-ager for Uplands Cheese, says he has seen some of the show’s episodes and thinks it’s a great format for cheese education.

“We’re flattered with any atten-tion Barrie Lynn bestows on us,” he says.

Joe Widmer, owner of Widmer’s Cheese, Theresa, Wis., says “Cheese Rules” is an “awesome show.”

“Barrie Lynn is very knowledge-able and moving up fast as the expert on educating the public on cheese,” he says. “I’m always proud of how she works with my cheeses.”

Krich says filming for the show is

going to start up again in March in Los Angeles, with topics including pairing cheese with coffee and pairing cheese with rum.

“You wouldn’t really think of pair-ing cheese with coffee — but then again, we add other dairy products to it like milk and cream,” she says.

Krich notes she is interested in including all types of cheeses on the show, and interested cheesemakers can send her an e-mail at [email protected].

And while cheesemakers have not been featured as guests on the show yet, “it’s certainly some-thing I’m open to,” she says. CMN

http://toray-membrane.com/application/page.aspx



NEWS/BUSINESS


BE A PART OF THE NATION’S LARGEST DAIRY CONFERENCE!

MADISON, Wis. — The U.S. Cham-pionship Cheese Contest will be held March 8-10 at Lambeau in Green Bay, Wis., with the game plan of finding one U.S. Champion Cheese among 1,602 contest entries.

Cheesemakers and buttermakers in 30 states have submitted products for this year’s contest. Over three days, 26 experts will examine more than 30,000 pounds of cheese and butter, accord-ing to the Wisconsin Cheese Makers Association (WCMA), which hosts the contest. In all, 221 locations, from farmstead cheese sites to commercial cheese and butter facilities, entered products this year.

WCMA notes the competition is

Next month’s U.S. Championship Cheese Contest will boast 1,602 entries from 30 statesrooted in more than 120 years of history, dating back to the first cheese contest in 1891. Since 2001, the United States Championship Cheese Contest has more than doubled in size (141 percent growth).

“Growth in this competition mirrors both a renaissance in artisanal cheese-making and consumers’ growing desire for new, adventurous cheese varieties and flavors,” says John Umhoefer, execu-tive director, WCMA.

According to Robert Aschebrock, chief judge for WCMA’s championship cheese contests, this competition, through de-cades of refinement, has set the standard worldwide for professional, objective evaluation of cheese and butter.

“We select judges — cheese buyers, food scientists and licensed graders — from across the United States to evaluate entries on a strict numeric system,” Aschebrock says.

Before his volunteer service to the contest, Aschebrock was a career cheese and butter grader with USDA.

Cheese and butter varieties entered in the contest are divided into classes, with this year featuring a total of 73 classes for cheese and 3 classes for butter.

On March 8 and 9, judges will work in teams of two, selecting gold medalists in each class. The gold medal cheeses then compete in a final championship round to determine one U.S. Champion Cheese

and two runners-up. The championship round will convene March 10.

The contest gained 236 entries this year, which WCMA says reflects broad growth in types of cheese produced in the United States.

“This year, entries of hard cheeses made from goat’s milk doubled, aged Cheddar entries doubled and the total number of sheep’s milk cheeses more than doubled,” Umhoefer says.

The competition also includes 50 percent more fresh Mozzarella, 50 percent more Gouda, a doubling of soft, cow’s milk cheeses with added flavors and 50 percent more pepper cheeses. WCMA added classes for reduced-so-dium cheese and reduced-fat and lowfat cheeses, gathering a total of 75 cheeses in these classes.

The following states sent entries to the 2011 U. S. Championship Cheese Contest: California, Connecticut, Iowa, Idaho, Illinois, Indiana, Kansas, Ken-tucky, Louisiana, Massachusetts, Mary-land, Michigan, Minnesota, Missouri, Nebraska, New Jersey, New Mexico, New York, Ohio, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennes-see, Texas, Utah, Virginia, Vermont, Washington and Wisconsin.

The contest is free and open to the public. In addition to watching the judg-ing in action, visitors to Lambeau Field can sample gold medal cheese varieties from the most recent contest (held in 2009) and watch artist Sarah Kaufmann carve 640 pounds of Cheddar.

For more information, con-tact John Umhoefer at 608-828-4550, e-mail: j u m h o e f e r @w i s c h e e s e m a k e r s . o r g . C M N

PepsiCo completes Wimm-BIll-Dann Foods acquisitionPURCHASE, N.Y. — PepsiCo Inc. re-cently announced that it has completed the acquisition of Wimm-Bill-Dann Foods, a major Russian food and bever-age company.

Under the acquisition agreement, a subsidiary of PepsiCo has acquired approximately 66 percent of Wimm-Bill-Dann from a group of shareholders and subsidiaries of Wimm-Bill-Dann for ap-proximately $3.8 billion. The acquisition increased PepsiCo’s total ownership of Wimm-Bill-Dann’s ordinary shares to approximately 77 percent. PepsiCo expects to make an offer in Russia on or before March 11 to acquire all remaining Wimm-Bill-Dann shares.

This transaction will make PepsiCo the largest food and beverage busi-ness in Russia and will strengthen the company’s position in the fast-growing Eastern European and Central Asian markets, company officials say. It also will raise PepsiCo’s annual global revenues from nutritious and func-tional foods from approximately $10 million to nearly $13 billion. CMN

http://www.cheeseconference.org




MONTREAL — Saputo Inc. recently announced that its net earnings for the third quarter, ending Dec. 31, 2010, totaled C$111.8 million, an increase of C$7.5 million or 7.2 percent over the same quarter last fiscal year. Earnings before interest, income taxes, deprecia-tion and amortization (EBITDA) totaled C$190.6 million, up 3.9 percent from the same quarter last fiscal year. Revenues for the third quarter amounted to C$1.54 billion, up 3.0 percent from the corresponding quarter last year. Basic earnings per share (EPS) were C$0.55 and diluted EPS were C$0.54 for the quarter, compared to basic and diluted EPS of C$0.50 for the third quarter during the previous fiscal year.

A 7-cent increase in the U.S. aver-age block market per pound of cheese, compared to the same period last fiscal year, contributed to increased revenues and EBITDA by positively affecting the absorption of fixed costs.

Revenues for the USA Dairy Products Sector totaled C$510.2 million for the third quarter, up from C$498.1 million for the same quarter last fiscal year. The 7-cent increase in the average block market per pound of cheese compared to the same quarter last year increased revenues by approximately C$16 mil-lion. Additional revenues from a more favorable dairy ingredients market and higher sales volumes increased revenues by approximately C$17 million. The appreciation of the Canadian dollar eroded approximately C$21 in revenues. Revenues since the beginning of the fiscal year have totaled C$1.51 billion in this sector up from C$1.43 billion for the same period last fiscal year.

Saputo reports increased net earnings for third quarter, up 7.2 percent from year prior EBITDA for the third quarter in

the USA Dairy Products Sector totaled C$61.4 million, down from C$63.7 mil-lion for the same quarter last fiscal year. Various market factors combined had a negative impact on EBITDA of approxi-mately C$17 million, while initiatives to increase operational efficiencies and higher sales volumes offset increased expenses, increasing EBITDA by ap-proximately C$15 million compared to the previous year. Since the beginning of the fiscal year, EBITDA has totaled C$200.3 million, up from C$163.2 million the same period last fiscal year.

During the third quarter, the USA Dairy Products Sector completed capital expen-ditures at the California facility acquired in

fiscal 2010 as part of the F&A Dairy acquisi-tion. Saputo says these expenditures should improve operational efficiencies.

The CEA (Canada, Europe and Argen-tina) Dairy Products Sector revenues for the third quarter totaled C$995.2 million, up from C$960.2 million for the same period last fiscal year. Since the begin-ning of the fiscal year, revenues from the CEA Dairy Products Sector have totaled C$2.92 billion, up from C$2.87 billion for the same period last fiscal year.

EBITDA in this sector for the quarter ended Dec. 31 totaled C$125.5 million, up 8.8 percent compared to C$115.4 million during the corresponding quarter last fiscal year. Since the beginning of the fiscal year, EBITDA in this sector has totaled C$379.4

million, up from C$340.2 million during the corresponding period last fiscal year.

During the third quarter, the Canada Dairy Products Division initiated a recall on certain process cheese products that may have been contaminated with Liste-ria monocytogenes. As a result, Saputo stopped production of the affected line. The company says corrective measures are being implemented, and the produc-tion line is set to be recommissioned dur-ing the first quarter of fiscal 2012 with the approval of the Canadian Food Inspec-tion Agency. Meanwhile, the production of process cheese product continues in another Saputo facility. The company recorded a charge of C$1.9 billion during the quarter related to this recall. CMN

STERLING, Va. — Food Technology Corp., a supplier of food texture ana-lyzers, has launched a new version of its website dedicated to food texture measurement.

The website has been redesigned with an easy-to-navigate layout and an emphasis on providing practical informa-tion for food texture applications.

Visitors are provided with information related to their specific industry, such as dairy, grains and bakery, or their specific test method including compression, bulk analysis and shearing. Company officials note this focus means food technologists and quality control personnel can easily assess how best to test their particular food products and ingredients.

The site also showcases Food Technol-ogy Corp.’s texture analyzers, tenderom-eters, test cells, fixtures and software. Test cells and fixtures are grouped by test method, which company officials say ensures straightforward selection of the most appropriate test accessory.

For additional information, vis-it www.foodtechcorp.com. CMN

Food Technology Corp. launches upgraded website

http://www.iddba.org



NEWS/BUSINESS


WASHINGTON — The National Milk Mustache “got milk?” campaign, in partnership with USA Today, is an-nouncing the call for entries for the 14th annual Scholar Athlete Milk Mustache of the Year (SAMMY) Award program. The awards recognize 25 high school senior student athletes who represent excellence in academics, athletics, community service and leadership, and include lowfat milk in their daily routines.

The scholarship rewards student athletes by helping to offset some of the costs associated with college tuition.

Twenty-five students will receive a $7,500 college scholarship, attend an awards ceremony with celebrity guests at Disney World, be pictured in a special Milk Mustache ad in USA Today and have a chance to help their favorite charity in the process.

Interested applicants can visit www.bodybymilk.com to submit an application. Applications are due March 4. This year’s winners will be selected by a celebrity panel of Milk Mustache athletes including Apolo Ohno, Chauncey Billups, Dara Torres, Andy Roddick and Lindsey Vonn. CMN

USA Today, ‘got milk?’ calling for entries for SAMMY awards scholarship

NORTHFIELD, Ill. — Kraft Foods Inc. recently reported its fourth quarter and full-year 2010 results, which the company says were strong and driven primarily by volume/mix gains in each geography.

Net revenues in the fourth quarter increased 30.0 percent to $13.8 billion, including a 26.2 percentage point impact from the Cadbury acquisi-tion. Combined organic net revenues grew 5.7 percent, Kraft Foods’ base business organic net revenues grew 6.5 percent, and Cadbury organic net revenues grew 2.2 percent in the fourth quarter compared to a year earlier.

For 2010, net revenues grew 27.0

Kraft Foods reports growth in fourth quarter results, driven largely by volume/mix gainspercent to $49.2 billion and combined organic net revenues grew 3.5 percent from 2009.

Operating income in the fourth quarter increased 2.2 percent to $1.24 billion. Diluted earnings per share in the fourth quarter were $0.31, com-pared to $0.48 in the fourth quarter of 2009. Operating earnings per share were $0.46 in the fourth quarter, down slightly from $0.47 in the fourth quarter of 2009.

Diluted earnings per share for 2010 were $2.39, up from $2.03 in 2009. Oper-ating earnings per share were $2.02 in 2010, up from $1.93 the previous year.

The company says it expects organic net revenue growth of at least 5 per-

cent and operating earnings-per-share growth of 11-13 percent in 2011.

Net revenues for Kraft Foods North America increased 12.2 percent in the fourth quarter, and Kraft Foods’ base business organic net revenue grew 4.1 percent. Revenue increased in nearly every business segment, the company says. Volume/mix contributed 2.4 percentage points of the organic net revenue increase, reflecting benefits from higher levels of merchandising activity and successful multi-brand marketing campaigns. Pricing in re-sponse to rising input costs accounted for the remaining 1.7 percentage points of the increase.

Combined organic net revenues

increased 3.3 percent. Kraft’s power brands grew approximately 5 percent, fueled by solid market share gains across several categories as well as double-digit growth in Kraft Macaroni & Cheese dinners, Maxwell House cof-fee and Planters nuts. Other brands, including Philadelphia cream cheese and Kraft Singles processed cheese, grew high single digits.

Cadbury organic net revenues de-clined 6.1 percent. Segment operating income declined 5.8 percent, largely due to a steep increase in input that more than offset the benefits of higher pricing, lower overheads, favorable volume/mix and productivity.

For Kraft Foods Europe, net rev-enues increased by 28.6 percent. Base business organic net revenue grew 2.2 percent, and net revenues increased in each major category. Cheese grew high single digits, primarily reflect-ing a successful marketing campaign and new product launches of Phila-delphia, the company says. Combined organic net revenues increased 1.6 percent, Cadbury organic net revenues were essentially flat, and segment operating income declined 27.7 percent.

For Kraft Foods Developing Markets, net revenues increased 73.5 percent. Base business organic, combined organic net revenues increased 13.6 percent, Cadbury organic net revenues grew 6.7 percent, and segment operat-ing income more than doubled. CMN

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DALLAS — Dean Foods Co. recently an-nounced its fourth-quarter and full-year 2010 financial results, which reflected an “exceptionally difficult year,” accord-ing to Dean Foods Chairman and CEO Gregg Engles.

Net income attributable to Dean Foods totaled $91 million for the full year 2010, compared to $240 million the previous year. On an adjusted basis, net income for 2010 totaled $147 million, compared to $277 million in 2009. For the fourth quarter 2010, the net loss attributable to Dean Foods totaled $21 million, compared to net income of $50 million in the fourth quarter of 2009. Adjusted net income for the fourth quarter 2010 was $27 million, compared to adjusted net income of $59 million in the same quarter of 2009.

The company earned $0.50 per diluted share for the full year 2010, compared to $1.38 per diluted share for the full year 2009. On an adjusted basis, Dean Foods

Dean Foods announces fourth-quarter and full-year results, reflecting a difficult 2010earned $0.80 per diluted share for the full year 2010, compared to $1.59 for the full year 2009. For the fourth quarter, the company recorded a loss of $0.11 per diluted share from fourth quarter 2009 earnings of $0.27 per diluted share. On an adjusted basis, fourth quarter diluted earnings per share were $0.15, compared to $0.32 per diluted share during fourth quarter 2009.

Net sales for the 12 months ended Dec. 31 totaled $12.1 billion, compared to $11.1 billion for the previous year. Fourth quarter net sales totaled $3.2 billion, compared to $3.0 billion net sales in the fourth quarter of 2009.

Engles says the fourth quarter re-

sults reflect many of the same trends that impacted business all year.

“We have, however, begun to see signs that the fluid milk category is stabiliz-ing, albeit at historically low levels of profitability,” Engles adds. “While we do not see meaningfully better indus-try conditions in 2011, we do see more stability returning to important aspects of our business, albeit stability at levels that imply lower earnings in Fresh Diary Direct-Morningstar going forward.”

Fluid milk volumes at Fresh Dairy Direct-Morningstar were essentially flat in 2010, including the benefit of acquisitions. Total product volumes for the segment declined 2 percent.

This volume softness was offset by the pass-through of higher overall commod-ity costs driving an overall increase in Fresh Dairy Direct-Morningstar net sales of 7 percent to $10.2 billion for 2010. Full-year operating income for this segment was $504 million, down 33 percent from the previous year.

WhiteWave-Alpro net sales for the full year were $1.9 billion, up 19 percent from 2009. For the full year, this segment’s adjusted operat-ing income increased 23 percent to $175. The increase is a result of the positive impacts of the Alpro acquisi-tion and solid double-digit operating income growth at WhiteWave. CMN

SPRINGFIELD, Mo. — DairiConcepts has introduced Ascentra, designed to meet the need of food manufacturers to reduce sodium content in foods and yet offer full flavor.

Ascentra is a powdered ingredient that can lower sodium content by 25 to 50 percent in a range of food systems while also boosting salt perception, savory nuances and umami effects, company officials say. It is made from a milk-based fermentation process and has been developed to include kosher and European Union-certified versions of the base products.

Ascentra does not contain mono-sodium glutamate (MSG), hydrolyzed vegetable protein (HVP) or yeast extract, so consumer goods made with the ingredients can be produced with clean label and “reduced sodium” and/or “gluten-free” declarations.

According to company represen-tatives, sensory evaluation panelists have described Ascentra applica-tions as tasting more wholesome and balanced than those made with yeast extracts, and yielding a more rounded flavor than traditional all-salt formulations

The company also notes levels as low as 0.5 percent have been used to reduce salt and remove MSG from soups and snack foods as well as boost the cheese, meat and vegetable flavors of meal kits, sauces and dips.

In addition, Ascentra is rich in potassium but does not contain potassium chloride, which helps to eliminate the possibility of metallic flavor notes.

For additional information, con-tact 417-829-3400, e-mail [email protected] or visit www.dairiconcepts.com/index.html. CMN

DairiConcepts introduces Ascentra flavor enhancer

http://www.whitehall-specialties.com




NEWS/BUSINESS

CHICAGO — The National Restaurant Association is seeking innovative food and beverage products that have a significant impact on the industry, and will recognize the “best in class” at its annual trade show in May.

An independent panel of judges will select the recipients of the first annual Food & Beverage Awards, to be show-cased at the 2011 National Restaurant Association Restaurant, Hotel-Motel Show May 21-24 in Chicago.

The association currently is accept-ing applications from manufacturers who have made significant advancements and innovations in ingredients, prepara-tion, processing and packaging of food and beverage products launched in the U.S. marketplace between Jan. 1, 2010 and May 21, 2011. The product may be designed for one, several or all operator segments.

The awards will be presented in two categories: healthier products, and in-novative and impactful products.

“Food and beverage innovation is a major driver of customer satisfaction and restaurant profitability. Manufacturers play a key role in food and beverage prod-uct innovation,” says David Gilbert, chief operating officer, National Restaurant Association. “To be successful, operators must continually seek and adopt new products and ideas, frequently originat-ing from manufacturers.

“Understanding this, the National Restaurant Association is launching the new Food & Beverage Product Innovations Awards programs to celebrate and encourage continued innovation from manufacturers, while identifying cutting-edge ideas operators can use to enhance their business,” he adds.

For consideration, candidates must submit their application by March 28. Any new product submitted for consid-

Award to honor food, beverage innovationseration must meet one or more of the following general criteria:

• New product introduction — Prod-uct introduced to the U.S. marketplace on or after Jan. 1, 2010 through May 21, 2011.

• Product improvement — Sig-nificant improvement to an existing product that is clearly recognizable by the operator.

• New process or preparation — A new way to produce an existing product that improves the product in some way: longer shelf life, better nutritional pro-file, more nutrient retention, meets new nutrition standards.

• Healthier nutritional profile — Changes that significantly impact the nutritional profile of the product and can be validated.

• Packaging improvement — A significant change in the packaging of the product that delivers clear benefits to the operator.

• Products designed for children — New products (and/or new formula-tions) specifically designed for tougher standards on student feeding.

• Incremental value to the operator — Products that provide real value to operators in terms of price, cost savings, labor savings, time savings and increas-ing check average.

The independent panel of judges for the awards will represent major com-mercial and non-commercial segments of the foodservice industry.

In addition to being showcased at the National Restaurant Association’s Restaurant, Hotel-Motel Show, award recipients will be featured in a pre- and post-show promotional campaign. The award recipients will be announced in late April.

For more information and ap-plication forms, visit www.restau-r a n t . o r g / s h o w / f b a w a r d s . C M N

GENEVA, Switzerland — The Inter-national Organization for Standardiza-tion (ISO) and the International Dairy Federation (IDF) recently developed a testing standard to determine the content of melamine and cyanuric acid in powdered milk products and infant formula.

Several children died or became seriously ill in 2008 after drinking milk sold in China that was contaminated by melamine. The substance, used in plas-tics manufacturing, had been added to the milk in order to increase the appear-ance of its protein content. Ingestion of melamine can cause kidney stones and renal failure.

To prevent adulterated milk prod-ucts from entering the market in the future, ISO and IDF have prepared technical specification (TS) ISO/TS 15495 | IDF/RM 230:2010, Milk, milk products and infant formulae — Guidelines for the quantitative

ISO, IDF develop new testing standard to determine content of melamine in milk

determination of melamine and cyanuric acid by LC-MS/MS. The TS provides guidelines for sampling, testing procedures, performance and examples.

“This much-awaited document will help strengthen consumer confidence in the milk industry,” says Steve Holroyd, co-project leader of the TS. “Producers, manufacturers and regulatory authori-ties can use it to prevent further inci-dents. Although currently published as a TS, the document is expected to become a fully-fledged International Standard in the future.”

The new TS guidelines for melamine testing standards is available from ISO national member institutes. It also can be obtained directly from the ISO Central Secretariat, through the ISO Store or by contacting ISO’s marketing, communication and in-formation department. For more in-formation, visit www.iso.org. CMN

WASHINGTON —The International Dairy Foods Association (IDFA) now is accepting applications for the eighth annual Dairy Industry Safety Recogni-tion Awards, a program that honors facilities for outstanding worker safety performance.

Award winners will be notified this fall and featured in the “Dairy Field Re-ports” section of Dairy Foods magazine, which co-sponsors the safety awards program.

IDFA began the program in 2004, and the rate of industry participation continues to grow each year, according to association representatives.

“The number of submissions we’ve received from our members over the past seven years clearly demonstrates that worker safety is a high priority for them,” says Clay Detlefsen, IDFA vice president of regulatory affairs. “We encourage all facilities to send in nominations for their processing and trucking operations so we can recognize and celebrate their success-ful efforts.”

Applicants will be judged on specific data required by the U.S.

IDFA now accepting applications for the eighth annual safety recognition awards

Occupational Safety and Health Ad-ministration (OSHA) on the facility’s “Summary of Work-Related Injuries and Illnesses” report (OSHA Form 300A).

Processing facilities will be judged in four product categories: natural and processed cheese; dry, condensed and evaporated products; ice cream and frozen desserts; and fluid milk.

Within each product category, awards are available for small, medium and large facilities that achieve the best overall safety performance rates based on the OSHA data.

Trucking operations will receive certificates for having no lost days and no cases involving job transfers or restrictions.

Entry forms are available online at www.idfa.org, and there is no fee to enter. All entries must be submitted to IDFA no later than March 31.

The awards will be displayed at IDFA’s International Dairy Show, Sept. 19-21 in Atlanta.

For more information, contact Clay Detlefsen at 202-220-3554, e-mail: [email protected]. CMN

http://www.mctdairies.com



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ROSEMONT, Ill. — Beliefs about the impact of saturated fatty acids (SFA) on the risk of cardiovascular disease (CVD) are being challenged by a new perspectives paper from an international symposium held at the University of Copenhagen last year.

The paper, by Arne Astrup, et al., published in the American Journal of Clinical Nutrition, addresses “The role of reducing intakes of saturated fat in the prevention of cardiovascular disease. Where does the evidence stand in 2010?”

The meeting brought together many of the world’s leading scientists to debate and discuss this topic. They concluded that “single risk factors have limitations when considered on their own because the effects of diet on CVD risk are mediated by many pathways, with blood lipids being only one.” In addition, the ratio of total cholesterol to HDL cholesterol is a better predictor of the effect of saturated fatty acids on CVD risk than LDL and/or total cho-lesterol, as individual fatty acids have differential effects on various blood lipids, research indicates.

Scientists also say that when it comes to determining the correlation between CVD and food, all of the components within the food matrix may be more important than concentrating solely on fatty acids content. As an example, the paper points out that the protein, cal-cium and other nutrients within cheese, including certain fatty acids, may offset the effects of its SFA content on blood lipids and overall CVD risk.

According to the experts, current evidence only suggests that substitu-tion of SFA by polyunsaturated fatty acids (PUFAs), but not carbohydrates, results in a lowering of total and LDL

Scientists discuss saturated fat, heart diseasecholesterol.

“However, even this conclusion isn’t the last word, as there is growing recognition that individual fatty acids within the PUFA category have differ-ent physiologic effects,” says Cindy Schweitzer, technical director, Global Dairy Platform, referring to a recent analysis published in the British Jour-nal of Nutrition which reported that substitution of certain PUFA for SFA and trans fatty acids increased risk of coronary heart disease.

When viewed in totality, the group concluded that the effect of a specific food on risk of CVD cannot be determined on the basis of its SFA content alone, and noting the need for more research.

“The review of evidence between reduced intakes of saturated fat and the prevention of CVD raises excellent ques-tions — and identifies great opportuni-ties about how the scientific community can move forward to better address the complex relationship between diet and heart disease,” says Gregory Miller, presi-dent of the Dairy Research Institute and executive vice president of the National Dairy Council.

Dairy Research Institute also says it agrees with many of the findings of the group’s scientific perspective, includ-ing the notion that the source of the saturated fat and its specific nutritional merits must be taken into account before quality conclusions can be made about the risk of these fats on overall health and wellness, including CVD.

The institute also notes that it remains committed to the evolution of science in this area with the ultimate goal of being able to help consumers identify smart dietary choices that pro-vide important nutrients for good health and reduce risk of chronic diseases. CMN

ROSEMONT, Ill. — Applications now are being accepted for 20 college scholarships that are awarded by U.S. dairy producers through the National Dairy Promotion and Research Board (NDB).

NDB funds, in part, Dairy Manage-ment Inc. (DMI), which manages the national dairy checkoff program.

Scholarship criteria include aca-demic achievement, a career interest in a dairy-related discipline and dem-onstrated leadership, initiative and integrity.

The value of 19 of the scholarships is $1,500. In addition, NDB awards a $2,500 James H. Loper Jr. Memorial

NDB scholarship applications due April 15Scholarship to the most outstanding scholarship recipient.

Applications are open to eligible undergraduate students (sophomores through seniors) enrolled in college/uni-versity programs that emphasize dairy. Majors include communications/public relations, journalism, marketing, busi-ness, economics, nutrition, food science and agriculture education.

Interested students can download an application from the “about us” section of www.dairycheckoff.com.

Quest ions can be d irected to Griffin at 847-627-3320, e-mail: [email protected]. CMN

SHELTON, Conn. – Inline Plastics Corp., a company that specializes in rigid plastic food containers, has increased its manufacturing capacity with the addi-tion of a new thermoforming line.

This expansion, which company offi-cials say was driven by a strong demand for Inline’s food containers, represents a significant increase in manufacturing capacity (up to 10 million containers per month). With the addition of the new thermoforming line, the Shelton, Conn.,

Inline Plastics increases manufacturing capacity with new thermoforming line

plant will hire up to 18 more people.“Inline Plastics has been contribut-

ing to Connecticut’s economy for many years,” says Connecticut Gov. Daniel Malloy. “This expansion will allow Inline Plastics to add 18 jobs and improve op-erations for the existing 196 employees. The state’s financial report will ensure the company will stay in Connecticut and continue to invest and grow here.”

For additional information, vis-it www.inlineplastics.com. CMN

http://www.nelsonjameson.com

http://www.dcicheeseco.com




NEW PRODUCTSF O R D A I R Y M A N U F A C T U R E R S

DUNCAN, S.C. — Sealed Air’s Cryovac has released its new BLX-F2 taped bag loader designed for automatic bag loading.

The system, intended for Cheddar and Italian cheeses, offers processors configurable options using roll or boxed taped bags for an expanded variety of product sizes, shapes and weights.

Company officials note that for the first time, the system allows proces-sors to program their in-feed for both in-line and perpendicular product separation and staging, depending on the application.

The new loader also handles a wider range of product weights, from 8 ounces to 12 pounds, and requires minimal time for change-overs.

“In today’s marketplace, processors need to be even more adaptable and of-fer a wider variety of products and sizes to their customers,” says Bill Bartell, North American equipment marketing

Sealed Air’s Cryovac introduces new bag loader for Cheddar, Italian-style cheeses

director for Sealed Air’s Cryovac brand. “The Cryovac BLX-F2 autoloader was designed with specific market needs of processors in mind, while also focus-ing on the increased performance and labor efficiency they require in today’s business climate.”

The system operates at speeds of up to 45 cycles per minute depend-ing on product length, while ensuring gentle loading to help maintain product integrity. The touch-screen operator interface can be programmed to save up to 99 different product settings, and is equipped with sensors and controls to ensure the product is correctly staged for accurate loading.

In addition, the loader handles bag widths of 4 inches to 14 inches and bag lengths up to 30 inches. The system is built to 3-A dairy standards.

For more information, con-tact 1-800-845-3456 or visit www.c r y o v a c e q u i p m e n t . c o m . C M N

MADISON, N.J. — Sensor Products Inc. has released its Thermex tempera-ture distribution film.

Thermex is an economical thin sensor material that can be used in heat sealing and ultrasonic welding of packaging to quickly diagnose the temperature at the interface of heated contacting platens or rollers.

Temperatures ranging from 200 degrees to 300 degrees Fahrenheit fall within Thermex’s range. Traditional methods of thermal management do not necessarily reveal that uniform temperature distribution at the inter-face of the heat seal has been achieved, company officials say.

Upon exposure to heat, Thermex changes color instantaneously and permanently to reveal temperature distribution between any two contact-ing services. The intensity of the color change directly relates to the tem-perature it was exposed to, enabling Thermex to reveal spot high or low temperature zones and minute surface variations.

According to company officials,

Thermex sensor film allows users to quickly check and correct surface temp variations

these fluctuations cause improper seal-ing and need to be corrected to ensure quality control.

Sensor Products’ website, www.sensorprod.com/thermex includes the minimum heat sealing temperature of several materials used in packaging that fall within the specified temperatures of Thermex testing.

Many plastics used in packaging fall within Thermex’s temperature range. Vertical form and fill machines as well as vacuum and flat web machines may be candidates for this product.

In addition, Thermex may be used alone or in conjunction with Fuji Prescale pressure-indicating film from Sensor Products.

Post-processing analysis of Ther-mex is available for temperature fluctuations that need to be analyzed with great precision, company repre-sentatives note.

For a complimentary sample of Fuji Prescale film or more information about Thermex, contact Sensor Products at 973-884-1755, e-mail: [email protected] or visit sensorprod.com/thermex. CMN

EDISON, N.J. — Cryopak has intro-duced its RePak 96, a full-size pallet shipper used to keep payload within a temperature range of about 35 degrees Fahrenheit to 46 degrees Fahrenheit for 96 hours.

The RePak 96 includes Cryopak refrigerant sleeves designed for easy pre-conditioning and assembly into the shipper.

In addition, the pallet shipper fea-tures two payload cavities, allowing for more flexibility for shipments of tem-perature-sensitive products, company officials say.

Cryopak releases full-size pallet shipperEach cavity gets a set of refrig-

erants to ensure that temperature ranges are not compromised during transit.

The unit is available in single use and re-usable versions.

“The RePak 96 was developed to offer our clients a flexible design that is easy for one person to put to-gether in a very short period of time,” says Bill Hingle, marketing director, Cryopak.

For more information, contact Bill Hingle at 732-346-9200 ext. 104, e-mail: [email protected]. CMN

http://www.wsus.com




NEWS/BUSINESS

GREENWICH, Conn. — Brynwood Partners V L.P. has sold its investment in Richelieu Foods Inc. to Centerview Partners Holdings LLC.

The terms and conditions of the transaction were not disclosed.

Richelieu Foods, headquartered in Randolph, Mass., is a manufacturer of private label frozen pizza and salad dressings. Brynwood Partners acquired the company in 2005.

Currently, Richelieu Foods em-ploys more than 650 people and operates four manufacturing fa-cilities in the United States. CMN

Brynwood Partners sells investment in Richelieu Foods

DUBLIN, Ireland — Food scientists at University College Dublin have de-veloped an imitation processed cheese product that contains 60 percent less sodium than the regular full-salt ver-sion.

The researchers, who say there is little difference in taste and structure, believe the low-sodium imitation cheese could improve Western diets associated with hypertension and stroke.

The product is made from dry pro-tein ingredients such as casein powder rather than through the traditional cheesemaking process.

Researchers note emulsifying salts and sodium chloride are the sources of added sodium content in processed cheese. By altering the manufacturing conditions, the sci-entists reduced the levels of sodium chloride and maintained the taste and structure of the imitation cheese while reducing sodium content by up to 60 percent.

The methods also resulted in reduced processing times and a reduction in the amount of energy required for mixing and manufacture. The post-manufac-ture hardness of the cheese also was decreased due to slight changes in the way fat and moisture are distributed within the product.

Researchers suggest the new method could be scaled up for industrial production of imitation cheeses with significantly reduced salt content.

“With so much processed food being consumed, Western diets have about three times more sodium than is needed,” says Michael O’Sullivan, researcher. “This excessive intake of sodium is linked to increased rates of hypertension and stroke. So in recent years there has been a move toward reducing sodium in processed foods, including cheese products.” CMN

Dublin researchers develop cheese product containingless sodium

MELROSE, Minn. – Proliant Dairy has completed several application research studies demonstrating that the ability of its VersiLac line to replace 100 percent of whey powder in applications such as cheese sauce, ice cream, pizza crust and brownies.

VersiLac, which functions as a whey replacer, is the result of a combination of raw material capabil-ity and a food grade manufacturing process. Proliant also has shown how VersiLac, known generically as dairy product solids (DPS), can replace more expensive products including nonfat dry milk/skim milk powder, and partially replace cocoa and sugar.

Research finds VersiLac capable of replacing whey powder“The structure of the dairy industry

is shifting towards producing higher protein products vs. whey,” says Lori Stevenson, vice president of sales and marketing, Proliant Dairy. “Food for-mulators will have to ask themselves how they will deal with less, and more expensive, whey powder. Proliant Dairy is unique in that we are the only company in the world focused exclusively on value-added products like VersiLac.”

VersiLac is a natural, dispersible and soluble dairy ingredient. It is non-hygroscopic and will not cake or bridge in processing equipment.

In controlled research studies focusing on a variety of food systems,

VersiLac replaced up to 100 percent of nonfat dry milk and at least 25 per-cent of both sugar and cocoa in select beverage, bakery and confectionery applications.

Company officials note that con-sidering the rising cost of corn and corn-based ingredients, VersiLac also demonstrated versatility in replacing dextrose, maltodextrin or corn syrup solids.

The line is marketed throughout North America, Europe, Asia, the Middle East and Central and South America.

For more information, contact Lori Stevenson at 515-289-7621, e-mail: [email protected]. CMN




NEWS/BUSINESS

ROSEMONT, Ill. — The nutrient com-bination of calcium and milkfat present in dairy may play a role in reducing fat absorption and may help the human body to maintain good cholesterol (HDL), while minimizing any increase in bad cholesterol (LDL), according to an ar-ticle published in the February issue of the British Journal of Nutrition.

The study, designed to explore why dairy products containing saturated fat and high contents of calcium do not seem to significantly affect blood cholesterol levels as much as saturated fat from other sources, lends credence to the notion that milk and other dairy products with a high content of calcium might reduce the risk of cardiovascular disease.

Study finds dairy calcium may play a role in reducing fat absorption, maintaining HDLStudy authors note that historically,

intervention studies have pointed to a relationship between a diet high in saturated fat and increases in total cholesterol and LDL cholesterol. As a result, some nutrition experts have recommended that consumers limit the intake of high-fat dairy products. How-ever, observational studies have found an inverse relation between intake of milk and other dairy products with a high content of calcium and incidence of cardiovascular disease.

The authors aimed to study whether the high calcium content of dairy prod-ucts influences the effect of dairy fat on the lipid profile.

“In theory, without calcium, dairy

would have a bigger impact on LDL levels. The protective function of dairy calcium seems to set it apart from sources of fat,” says Arne Astrup, professor and director of the Department of Human Nutrition at the Faculty of Life Sciences, University of Copenhagen, and one of the study’s authors. “This study supports previous research we have conducted that indi-cates dairy intake may actually play a role in minimizing the risk for cardiovascular disease vs. increasing the risk.”

In addition, Gregory Miller, presi-dent of the Dairy Research Institute and vice president of the National Dairy Council, notes that many adults currently are concerned about their fat intake, cholesterol levels and heart

disease risk. “We believe this study underscores

the importance of dairy as a good daily source of calcium, protein and other nutrients while mitigating the impact on cholesterol,” Miller says. “The study reinforces findings published in the Dietary Guidelines Advisory Committee report in 2010 that suggests ‘bioactive components that alter serum lipid levels may be contained in milk fat,’ or the ef-fect of milkfat on blood lipids is different than what might be predicted.

“This is valuable information for the industry and for the consumer. It is an area of research the Dairy Research In-stitute continues to focus on,” he adds.

The study, “Dairy calcium intake modifies responsiveness of fat metabo-lism and blood lipids to a high-fat diet,” was a small, clinical trial that included participants completing four separate diets over a period of 10 days, with each diet differing in the amount of calcium and fat content.

F o r m o r e i n f o r m a t i o n o n this and other dairy-related top-ics , v i s i t USDairy.com. CMN

MADISON, Wis. — The Wisconsin De-partment of Agriculture, Trade and Con-sumer Protection (DATCP) currently is accepting proposals for the Agricultural Development and Diversification (ADD) Grant Program. These competitive grants are awarded annually to projects that are likely to stimulate Wisconsin’s agricultural economy through the development and exploration of new products, markets or technologies.

Proposals are due by 5 p.m. March 15, 2011.

Projects that have near-term im-pacts, innovation, commercialization potential, project team strength and potential benefit to a sector of Wisconsin agriculture are encouraged to apply.

Individuals, associations, agribusi-nesses and industry groups are invited to apply. The proposal can involve a collaboration or partnership between producers, industry, academia or agri-cultural organizations. Grant funding is provided by the State of Wisconsin, and the maximum grant amount is $50,000.

Since 1989, DATCP has distributed $7.1 million to fund 354 projects. ADD grant recipients have reported their projects leveraged more than $52 mil-lion in new capital investment and more than $147 million in economic returns, including increased sales, cost reduc-tions and economic impact.

More information and application materials are available online at datcp.wisconsin.gov under “Business, Grand & Financial Aid.” For questions about the grant program or completing the applica-tion, contact Mike Bandli, 608-224-5136, or [email protected]. CMN

DATCP accepting proposals for ag development grants

http://www.calpoly.edu/~dptc/ingredients/index.html



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and drive-thru boards. Buffets, salad bars and other self-service items also are included and will be required to provide caloric information adjacent to the item.

Establishments also must provide additional nutritional information in writing upon request. The additional written information would include calories from fat, total fat, saturated fat, cholesterol, sodium, carbohydrates, sugars, dietary fiber and protein. Estab-lishments also are required to include a succinct statement concerning the suggested daily caloric intake.

However, based in part on extensive comments on the draft guidance, FDA last month withdrew the proposal and said it intends to complete the notice-and-comment rulemaking enforcement process before initiating enforcement activities.

FDA notes it is required to issue proposed regulations no later than March 23, 2011. The agency then will review the comments it receives on the proposed rule and issue a final rule “expeditiously.”

FDA says it believes this approach to implementing the rules will minimize uncertainty and confusion among all interested persons.

Once implemented, the federal guidelines will replace differing regula-tions and laws that a growing number of cities, counties and states have passed to mandate that chain restaurants put calories and other nutritional informa-tion on their menus.• Uniform regulations

The National Restaurant Association says it supports FDA’s approach, not-ing last August’s draft guidance meant

restaurants could have been required to comply with two different sets of rules — complying with “guidance” first and then with final regulations later.

The association notes that switch-ing out menus and menu boards to reflect a two-step implementation would have added cost and confusion for restaurants as well as confusion and uncertainty for consumers.

In addition, replacing various local guidelines with a uniform federal stan-dard is especially helpful to restaurant chains with locations throughout the nation, as they currently are having to keep up with different rules and regulations depending on location, the association says.

In fact, according to Sue Hensley, senior vice president of communica-tions for the National Restaurant As-sociation, several states and localities have held off on implementing their own regulations in anticipation of a national law.

Still, some locations already have implemented their own rules, and the varying rules based on location is one concern noted by Tim McIntyre, vice president, communications, Domino’s Pizza Inc.

“We’re in favor of a national mandate because it would pre-empt all of these individual communities making their own rules,” he says. “It’s difficult to have certain regulations in one area and then slightly different regulations in another. We would like one set of guidelines that we can work with nationwide.”

McIntyre says that local regulations in places like New York have affected some of Domino’s locations.

“In New York, they’ve pushed us to label an entire pizza, not just an amount per serving,” he says. “We’ve actually had feedback from customers in New York. They see the total calorie count

for the whole pizza, but they want to know what it is per serving, so they think we are trying to hide something from them because we’re asking them to do the math.”

Hensley says that the National Restaurant Association has had a number of conversations with FDA to communicate the complexities of the food industry.

“We strongly hope FDA is considering those complexities and determining the best way for consumers to understand the information,” she says.

McIntyre is quick to point out that Domino’s very much supports providing nutritional information to consum-ers, but in a way that makes the most sense.

“Sharing nutritional information has never been something we’re against — we’ve been doing it for about 12 years,” he says. “But our information is online, where most of our customers are placing their orders.

“Menu labeling is all about battling obesity, and we get that,” he adds. “But we also know that the average person doesn’t order from us every week. When people criticize food companies, they forget that behind all of these compa-nies are actually real people who have their own families to feed. The people making decisions about the foods we’re providing have kids of their own, and we care about these issues, too.”

• Challenges of implementationWhile McIntyre says Domino’s

does support national menu labeling standards, he thinks there should be flexibility in how they apply to some food industry establishments.

He again notes that the bulk of Domino’s customers do not come into the store to order pizza.

“The challenge for pizza companies is two-fold: about 95 percent of Domino’s orders are given to us off premises (call-ing in or online), so it makes more sense for our nutritional info to be online,” Mc-Intyre says. “When you build your order online, you can see specific nutritional info; even if you order by phone, you can still get the information online.

“It seems like a competitive disad-vantage to us when we have to spend money on changing menus that people don’t really see,” he says. “We’re look-ing at how to change the boards that exist, how to meet the needs of all these communities, looking at creat-ing electronic boards because places with printed boards would have to be reprinted in their entirety. Electronic boards would be much easier to modify as we go.”

McIntyre notes that placing informa-tion on menus and menu boards makes more sense at restaurants like TGI Friday’s where customers sit down and have a printed menu in front of them.

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Comings and goings … comings and goings

Dean Foods Co., Dallas, recently announced the promotion of Tommy Zanetich to executive vice president, human resources, Dean Foods, ef-fective immediately. Zanetich joined Dean Foods in 2006 as senior vice president, human resources, for the WhiteWave Foods division. He previ-ously served as vice president, human resources, for Kraft Foods North America Customer Development.

Pennsylvania Gov. Tom Corbett recently has nominated George Greig, a farmer and agriculture leader from Linesville, Pa., as secretary of agricul-ture. Greig has held many positions within the Pennsylvania Farm Bureau, where he has served as the state board director for the past six years. He also owns and operates a 650-acre dairy farm in partnership with his brother in Crawford County. The confirmation process is expected to be complete in April. Former Pennsylvania Secretary of Agriculture Russell Redding, who served under the Rendell admin-istration, has been named dean of Agricultural and Environmental Sci-ences at Delaware Valley College, Doylestown, Pa. Redding was ap-pointed secretary in 2009 and served with the Pennsylvania Department of Agriculture for 16 years.

Richard Kriebel, chairman of the Pennsylvania Milk Marketing Board, has announced the retire-ment of Keith Bierly as secretary after seven years of service, and the appointment of Timothy Moyer as acting secretary. Moyer has been an employee of the board since 1993, and since 2000 he has been chief of support services. Moyer also serves as

an adviser to the board on non-legal issues.

Wisconsin Department of Agricul-ture, Trade and Consumer Protec-tion (DATCP) Secretary Ben Brancel recently appointed administrators of five divisions. Mike Powers will lead the Division of Agricultural Develop-ment. Powers served five terms in the Wisconsin Legislature and later worked in real estate and wind energy development. John Petty will lead the Division of Agricultural Resource Man-agement. Petty comes to DATCP after 13 years as executive director of the Wisconsin Agri-Service Association. Steven Ingham will return to lead the Division of Food Safety. Ingham has been a faculty member at the Uni-versity of Wisconsin-Madison Depart-ment of Food Safety and a food safety specialist with the UW-Extension since 1993. He served as the DATCP Division of Food Safety administrator from November 2008-July 2010 while on leave from the university. Sandy Chalmers also returns to DATCP, in a new role leading the Division of Trade and Consumer Protection. Chalmers has served since 2003 as the execu-tive officer of the Wisconsin office of the USDA Farm Service Agency and previously was Brancel’s director of the Office of Outreach and Policy dur-ing his first term as DATCP secretary. Perry Brown has been promoted to lead the Division of Management Services. Brown has been with DATCP since 2000, serving most recently as director of the Bureau of Agricultural Business and Sector Development and acting administrator of the Division of Agricultural Development. CMN

addition — the Wisconsin 6 Cheese, a combination of Mozzarella, Feta, Provolone, Cheddar, Parmesan and Asiago sprinkled with oregano on a Parmesan and Asiago crust.

“The idea is of course to sell more pizza, but, then to change the mix to sell more pizzas with more cheese,” Montel says. “If all traffic went to just pepperoni with regular amounts of pizza cheese, our results wouldn’t be as favorable.”

Montel notes that DMI and Domino’s are now in their third year of the three-year partnership, and results have been favorable.

“Based on the success we’re having and the opportunity we see, we are in conversation with Domino’s to further extend the partnership,” Montel says. “It’s a win-win — farmers are selling lots of cheese and the pizza category is growing.”

Foremost Farms USA of Baraboo, Wis., is one such company that pro-vides cheese to pizzerias as well as other retail, ingredient and foodser-vice customers.

“We’ve seen our sales to the pizza sector grow,” says Pat Mathiowetz, senior director of sales and market-ing, Foremost Farms USA. “We supply a very consistent, premium, all-natu-ral quality product, and that’s what restaurants are looking for to please their consumers. Our cheese is all produced in Wisconsin which is also a selling point for customers who are looking for something special to top their pizzas.”

And while sales growth is always a positive, the challenging economic

climate made for an even bigger ac-complishment.

According to Mathiowetz, the bleakest period for the U.S. economy in recent years occurred in a portion of 2008 and all of 2009.

“During that time consumer con-fidence fell, and most discretionary spending was cut,” Mathiowetz says, noting the “white table cloth” res-taurants were hit the worst, and the casual dining restaurants also were affected. “Surprisingly, consumers still went to quick-serve restaurants. It was during this time when the pizza wars started and the pizza chain res-taurants began offering significant deals like three pizzas for $10.”

Mathiowetz adds that frozen pizza manufacturers felt the impact of those promotions on their businesses as well, and started offering significant discounts at the retail level. This was attractive to consumers who were watching every penny they spent.

“There are many cheese suppliers pursuing sales for pizza applications. It’s a crowded market and difficult to become quickly established,” Ma-thiowetz says. “Foremost Farms has worked for over a decade to build markets in this area, and we feel we’re just now getting recognized as the supplier of quality Italian-style cheeses that have consistent, superior performance.”

Overall, Foremost Farms, which produces both Cheddar and Ital-ian-style cheeses, came through the recessionary period fairly well due to its balanced portfolio of sales, Mathiowetz says. The cooperative’s Italian-style cheese customers rep-resent foodservice, food processing and cheese converting.

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“We’re hopeful that people will recognize that one size can’t fit all in this,” he says. “We’re not against it, but we think the pizza industry specifically should have a say in how it’s being done.”• Unique factors of pizza

In addition to the issue of online ordering, pizza as a food has some unique factors that should be taken into account, McIntyre says.

He notes there are millions of possible different combinations to order.

“We think there should be some flexibility — maybe providing info on the top five most-ordered pizzas instead of every combination pos-sible,” he says.

McIntyre also notes that for some restaurant chains, products are the same anywhere you go, but pizza is a customizable product.

“Pizza is a bit more ‘consumer choice.’ A Big Mac is the same every-where, but customers can customize their pizzas,” he says. “The beauty of pizza is that you can make it as healthy as you want it to be.”

He adds that pizza is not typically a food consumers eat every day.

“Typically, you don’t eat it when you’re driving, and it’s usually a planned/shared occasion,” he says. “To many people, it’s a special indul-gence, not an everyday food.”• Researching the effects

Since menu labeling regulations have started to take effect in some areas of the country, numerous studies have been conducted on the effects.

As part of an effort to stem the rise in obesity, Washington’s King County, which includes Seattle, imposed a mandatory labeling regulation on all restaurant chains with 15 or more locations beginning in January 2009. Restaurants were required to disclose calorie information at the point of purchase.

Researchers from Duke-National University of Singapore (NUS) Gradu-ate Medical School and the public health department of Seattle and King County found, in the 13 months after the legislation went into effect, food-purchasing behavior at the Taco Time locations in King County was identical to that in Taco Time loca-tions where menu boards remained unchanged.

In addition, the total number of sales and average calories per trans-action were unaffected by the menu labeling, researchers found.

“Given the results of prior studies, we had expected the results to be small, but we were surprised that we could not detect even the slightest hint of changes in purchasing behavior as a result of the legislation,” says Eric Finkelstein, associate profes-sor of health services at Duke-NUS.

“The results suggest that mandatory menu labeling, unless combined with other interventions, may be unlikely to significantly influence the obesity epidemic.”

In addition, a recent study pub-lished online in the International Journal of Obesity found that requir-ing fast food restaurants in New York City to post calorie counts on menus did little to cut the number of calories children and teens consumed.

Researchers found that while children and adolescents noticed the calories posted on the menu, the calorie counts made little difference in what they chose to order. Rather, researchers say taste was the most im-portant factor the children and teens

gave for their menu selections.McIntyre notes that Domino’s fran-

chises in New York have said they see zero change in ordering patterns from customers following implementation of the menu labeling rules.

But even if consumers’ choices are not influenced by the additional in-formation, McIntyre says that doesn’t stop Domino’s from continuously working to improve its products.

“We have a full-time health and wellness person, looking at fat con-tent of cheese and other factors,” he says. “We’re always looking at ways to improve quality of products, reduce sodium — changes that don’t radically alter taste.”

McIntyre points to Domino’s

Smart Slice school lunch pizza as one example.

Domino’s Smart Slice is a whole-wheat, reduced-fat and reduced-sodium pizza, which is baked fresh and delivered to schools. Smart Slice is already being served in more than 120 school districts, and Domino’s plans to double that number within the next year, he says.

McIntyre notes another thing Domino’s is working on with its web-site is to have an option for custom-ers to build a “better for you” pizza, with recommendations for healthier toppings.

“We’re looking at things that might be an indulgent treat taste-wise but not necessarily calorie-wise,” he says. CMN

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NEWS/BUSINESS



how a cheese looks and tastes compared to other products to detailed descrip-tions of how it melts on a pizza or breaks down in the mouth.

The Wisconsin Center for Dairy Research (CDR) at the University of Wisconsin-Madison helps cheesemak-ers and food companies by creating descriptions and analyzing various profiles of cheeses, beverages, ice cream and finished foods with dairy ingredients.

“It’s not unusual for them to send cheese to the center, and we profile it for them,” says Carol Chen, researcher and coordinator of CDR’s sensory program.

For example, she says, when describ-ing a Cheddar, researchers at CDR begin with a few things about the body, how firm it is, and how it breaks down in the mouth. For flavor, they start out describing overall intensity — mild, aged, sharp or extra sharp — and basic flavors such as acid, sour, sweet or bitter, before moving on to other flavors from milky or buttery notes for young cheeses to possible sulfery notes as it ages.

“We describe flavors that contribute toward the Cheddar flavor, anything that pops up,” she says. “We don’t attach positive or negative terms.”• Making the grade

USDA grading and American Dairy Science Association (ADSA) scorecard judging are among the most well-known and traditional sensory tests. In a 2007 review for ADSA, “Sensory Analysis of Dairy Foods,” MaryAnne Drake, professor of sensory analysis and flavor chemistry at North Carolina State University, writes that in these techniques, a product is assigned an

overall quality score or grade based on a designated list of defects. These methods are fast and practical in a large manufacturing facility or quality control environment.

Robert Bradley, University of Wis-consin retired professor of food science and cheese judge trainer, describes cheese grading as a point scale based on what might be considered a “perfect cheese.” Flavor is given the most weight, body and texture next, and color and appearance third. Special categories exist for certain cheeses, such as eye formation in Swiss.

The first thing a cheese grader does is look at the surface, Bradley says. It has to be smooth, otherwise mold could grow underneath the wrapper. Color discrepancies might indicate discrepan-cies in flavor.

Next, the grader or judge will use a cheese trier to pull a plug to sample, smelling the fresh-cut surface.

“Since it’s a fresh-cut surface, you check for odor. It gives the first indi-cation,” Bradley says. “Examine the surface of the plug. Are there openings? Gas holes? Those are discrepancies. Is the color uniform from top to bottom?

The grader then will bend the cheese plug to see where it breaks. If a Cheddar breaks before a 90-degree bend, it’s marked as “short” and may have an acid flavor. If it breaks beyond 90 degrees or not at all, the cheese is weak and too soft.

“From there, you make notations on an evaluation sheet and put down a score,” Bradley says, adding that USDA has fixed deductions for each discrep-ancy in flavor, body and texture, color and appearance.

“They all go by ‘slight,’ ‘definite’ or ‘pronounced.’ It’s a judgment call,” he says. “It takes a lot of training to get someone to the point where they can judge correctly or evaluate correctly.” • A science of sense

Sensory profiles may seem subjec-tive depending on a person’s taste, preference and experience, but the aim of sensory analysis is to produce repeatable results.

“We are not looking for the perfect cheese. The goal is to 1: learn how to de-scribe the cheese, 2: identify off flavors that are present and find the causes, and 3: describe the main descriptors that define the product,” says Montserrat Almena-Aliste, a food science professor who specializes in sensory evaluation at the University of Vermont and Vermont Institute for Artisan Cheese. “At the end you have a good objective picture of the product and a good tool to evaluate the sensory quality of your cheese.”

Sensory researchers go into more depth than the average consumer would to describe and analyze properties of a cheese or other product. One example of this is differentiating between bitter-ness and acidity, Almena-Aliste says.

“Some people are not able to differ-entiate between these two basic tastes, but in terms of troubleshooting, the

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Fontina, Parmesan, Romano, Asiago and other hard cheeses.”

In fact, cheese blends have really taken off in recent years, according to Sommer. In some restaurants, blends of Mozzarella, Muenster and Provolone are used to achieve the typical stretch and mouthfeel with the added benefits of a more rich and unique flavor. Other blends incorporate cheeses such as Blue or Feta to achieve a different look and a different flavor.

“It’s not a new concept, but it has really taken off in terms of crazy and wild combinations,” Sommer says. “There is much more unique-ness and experimentation with new products in sit-down and delivery stores.”

Sommer notes one important factor to take into consideration when making blends is meltabil-ity. For example, Blue cheese has the tendency to over melt, while Parmesan and Romano also pose difficulties with meltability. Those working with Cheddar also should keep in mind that the full-fat cheese has a tendency to oil off, resulting in a pizza with a greasy appearance. Sommer notes one solution may be to blend with a lower fat cheese like low-moisture, part-skim Mozzarella in order to provide balance and reduce oiling off.

In addition to blends, current trends indicate pizzas now feature a wider variety of cheeses in gen-eral. Recently, CDR conducted a survey, sampling pizzas at several establishments in Madison, Wis. Sommer notes he was astonished at the number of different cheeses being used.

“We encountered Romano, Swiss, Muenster, Provolone, Fontina, Pepper Jack, Ricotta, Parmesan, Cheddar, Asiago, Feta, Blue, and of course the traditional Mozza-rella,” he says, noting Cheddar in particular is becoming a widely used cheese. “Restaurants are looking to differentiate from everyone else by adding different cheeses with dif-ferent flavors and visual appeal. If you put Blue cheese or Feta on a pizza, it really stands out.”

In addition to cheese, restau-rants are getting creative about pizza toppings in general

As far as future outlook goes, Montel expects the variety of cheeses used in the pizza industry continue to grow. He notes one ben-efit of this trend is that, with the help of quick service restaurants in the pizza category, specialty cheeses are becoming much more mainstream.

“Consumers want a broader cheese experience,” Montel says. “We will continue to expand beyond process American into other more specialty types of cheese — they just bring a ter-rific flavor experience.” CMN

a stable outlet for cooperative mem-bers’ milk. The expansion will be complete in the spring of 2011.

In addition to Mozzarella, the cooperative has supplied white Cheddar to the Greek pizza res-taurants on the East Coast since the early 1960s. Mathiowetz notes Provolone also is sometimes used on pizza, and works well when blended with Mozzarella.

“The specialty pizza restaurants are always looking to introduce new cheeses and other unique toppings on their menus,” he says. “We’re seeing more requests from custom-ers who want their own signature blends. They’re interested in blend-ing mozzarella with cheeses such as

they buy a frozen pizza,” he says. “Serving the ethnic pizza restau-rants and independent pizzerias was good for Foremost Farms, too, because those restaurants fared better than the chains during the economic downturn.

“A lesson that Foremost Farms learned over the past three years is that it’s very important to have a balance among supplying,” Ma-thiowetz adds.

Due to the positive response the cooperative has had from its Moz-zarella customers, Foremost Farms is expanding its Appleton, Wis., Mozzarella plant. Mathiowetz notes this will allow for continued growth within the pizza market and provide

Selling to frozen pizza manufac-turers, Mom-and-Pop restaurants, club stores and cash-and-carry food-service suppliers also has helped minimize the impact of the reces-sion and keep sales strong.

Mathiowetz notes both the fro-zen pizza and restaurant segments have been positive for Foremost Farms.

“We service the frozen pizza market with companies that are committed to producing quality frozen pizzas. And, consumers are looking for quality and value when

TOPPINGSContinued from page 26

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TASTESContinued from page 28

WASHINGTON — Milk production in the 23 major milk-producing states during January totaled 15.23 billion pounds, up 2.7 percent from January 2010, according to recent preliminary data from USDA’s National Agricultural Statistics Service (NASS). (All figures are rounded.)

December revised production in the 23 major states, at 15.03 billion pounds, was up 2.7 percent from December 2009. The December revision represents a decrease of 17 million pounds or 0.1 percent from last month’s preliminary production estimate.

The annual production of milk for the United States during 2010 was 192.82 billion pounds, 1.8 percent above 2009. Revisions to 2009 production increased the annual total 14 million pounds. Revised 2010 production was up 93 mil-lion pounds from last month’s report, NASS says.

Production per cow in the United States averaged 21,149 pounds for 2010, 576 pounds above 2009. The average annual rate of milk production per cow has increased 16.4 percent from 2001, according to NASS.

The average number of milk cows on farms in the United States during 2010 was 9.12 million head, down 0.9 percent from 2009. The average number of milk cows was revised up 2,000 head for 2009, NASS says.

In this month’s report, NASS says January milk production for the entire United States is estimated at 16.39 billion pounds, up 2.3 percent from January 2010. There were 9.16 million cows on farms, 16,000 head more than a month earlier and 68,000 head more than a year earlier. Production per cow nationally averaged an estimated 1,789 pounds in January, 26 pounds more than a year earlier.

In the 23 major states, there were 8.40 million cows in January, up 14,000

2010 U.S. milk production rose 1.8 percent; January production up 2.3 percent from year agohead from a month earlier and 82,000 head more than in January 2010. Pro-duction per cow averaged 1,813 pounds, up 29 pounds from a year earlier.

California led the nation’s milk production with 3.39 billion pounds of milk in January, up 0.7 percent from its production a year earlier. The increase

was driven by a gain in milk per cow; production per cow was up 25 pounds from a year earlier. NASS reports there were 1.75 million cows on California farms in January, unchanged from the previous month and down 11,000 head from January 2010.

Wisconsin followed with 2.20 billion

pounds of milk in January, up 1.6 percent from a year earlier. Production per cow in Wisconsin averaged 1,740 pounds, up 20 pounds from January 2010. NASS reports there were 1.27 million cows on Wisconsin farms in January, un-changed from the previous month and up 5,000 head from a year earlier. CMN

steps are very different if it is one or the other, so it is very important to be sure that as a cheesemaker you know the difference,” she says.

When training students to evaluate sensory profiles, Almena-Aliste says she focuses especially on descrip-tive analysis, which brings a more comprehensive approach than other methods.

In her “Sensory Analysis of Dairy Foods” review, Drake writes that descriptive analysis consists of train-ing a group of individuals (generally 6-12) to identify and quantify specific sensory attributes or all of the sensory attributes of a food. This sensory tool requires training of the panelists to operate in unison as an instrument.

“A trained sensory panel should produce results analogous to instru-mental data,” Drake says in the 2007 review. “As such, the sensory instru-ment (panel) should be as precise and

reproducible as possible.”Drake also says in the report,

“Sensory analysis is an invaluable set of methods for research and marketing. Knowledge of product variability, stability, comparison to competitor products, relationships to instrumental analyses and consumer understanding are all requirements for a successful product.” • Examining applications

Examining the sensory profiles of cheese through basic tasting panels, grading evaluation or descriptive analysis can help companies deter-mine if their cheese is a good match with consumers and for various ap-plications. It also can help pinpoint flaws and how to adjust the process or ingredients to improve the cheese.

Almena-Aliste says many cheese-makers are concerned with finding the right level of salt for their cheese, so salt level is one of the most impor-tant players in examining sensory profiles.

“Salt enhances and balances cheese flavor, but it also helps from

a technical point because, along with pH and moisture content, it controls bacteria and enzymatic activity shap-ing the sensory profile and shelf life of the cheese,” she says.

“Exploring how different salt levels affect the quality of your cheese is always helpful,” she adds. “Salt is a critical factor in the quality of cheese, and salt preference levels are quite different among consumers. So you need to do your homework!”

Sensory research also involves determining what is preferred by the end user, and those preferences can vary by demographic.

“The variety in what people are looking at as acceptable is very dif-ferent,” Chen explains. “On the East Coast they don’t mind oiling off and they expect the melted cheese to brown. The West Coast wants their pizza pie to have minimal oiling off of the cheese.”

Chen says panels representing the end users should have specific targets in mind to evaluate how a product performs.

“It’s another case of why it’s really important to us to accurately describe a product,” she says. “Whether a per-formance is acceptable or not, the end user really has to decide that.”

While sensory research in cheese used to deal primarily with evaluating the cheese by itself, the field now has shifted to include cheese that will be used as an ingredient. Research might include how the cheese needs to perform in a sauce, on a pizza or as an ingredient in a cracker.

Chen gives the example of someone who approached the researchers at CDR looking for the right Mozzarella for a deep-dish pizza.

“All the ingredients were going next to the crust, covered with sauce, and they wanted to know how Mozzarella would perform there,” she says. “We assessed how it was performing and helped them change specifications of the cheese so it performed better in that part of the application.”

Sensory researchers at CDR work with different types of pizza ovens to

Turn to INGREDIENT, page 32 D

Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com Reprinted with permission from the Feb. 25, 2011, edition of CHEESE MARKET NEWS® © Copyright 2011 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com


NEWS/BUSINESS


PRICESContinued from page 1

“You need to keep in mind that your company’s bottom line could change over time too, meaning you need more or less cheese,” he says.

According to McNally, Papa Murphy’s does not pass increased cheese costs to its consumers, nor do higher costs affect the types or amount of cheese used on its pizzas. The company does, however, watch the competition.

“For one thing, you have to assume your competition is going through the same thing you are,” he says. “You have to remain competitive, price-wise. If everyone’s raising prices, well, then maybe it wouldn’t be a competitive disadvantage to do so.”

McNally adds that Papa Murphy’s prides itself on having what it believes is some of the highest-quality product in the industry.

“We don’t do deliveries. Our pizza is made fresh in front of you for you to take home and bake,” he says.

“Even if competitors are paying less for cheese, you can’t always put a price on value, and our cheese is very high quality,” he adds. “The abun-dance of toppings and freshness of our products is most important.” CMN

of their product and wait to see what the market does for the other half.

“I’m a believer in ‘don’t put all of your eggs in one basket,’” he says.

If a pizza operator were to lock in prices for the year for all of their cheese, for instance, he could be at a disadvantage if prices drop dramati-cally from where they were when the contract was set, Chesler says.

“In that instance, you could be paying more for your cheese than your competitor,” he says.

The “50/50” rule is how Papa Murphy’s Take ‘n Bake Pizza, based in

need to slow down from what has been occurring for the past few months,” Cropp says.

Cropp also notes weather will be a key factor.

“Not only can weather have a sig-nificant impact on milk per cow this summer, weather conditions for the 2011 crop planting and growing season will greatly impact crop prices and feed costs for dairy producers later this year,” he says.

Restaurant traffic, including at pizza chains, also will be an important factor for holding up butter and cheese sales and their prices, he adds.

Chesler says managing price risk isn’t about “beating the market price;” it’s about balance.

Vancouver, Wash., manages its prices, says Jeff McNally, vice president of supply chain at Papa Murphy’s.

McNally says the company uti-lizes a combination of risk manage-ment strategies, including forward contracting. Typically, the company looks to lock in the price for about 50 percent of its cheese up to 6-12 months in advance.

He notes the company is in a good place right now as the price it is pay-ing for cheese is considerably lower than today’s market prices.

Industry consensus seems to be that these higher cheese prices won’t last.

“To hold prices as currently shown by dairy futures, milk production will

determine how a cheese’s attributes will change given different condi-tions.

“There are several different kinds of ovens pizza is cooked in — home, restaurant, stone-on-bottom, forced-air ovens,” Chen says. “Cheese performs differently in all ovens. It’s all very empirical. Cook pizza in one type of oven, it has a nice level of browning. Change one thing, you may not have acceptable browning.” • Higher standards

As people become interested in a broader range of foods and develop new tastes, and as the quality and technology in cheesemaking improves, the science of sensory evaluation also grows.

“The analytical techniques that support sensory science are growing. They are finding more and more about the chemistry of cheese,” Chen says. “Detection and measurement of things going on in cheese is improving, and we can correlate those along with sensory. They can support each other.”

Bradley adds that the quality of cheese has improved because of higher quality milk, and because automation has helped decrease human error. However, he says, that alone won’t create a perfect score.

“The occasional human error is eliminated,” he says. “But it does take the master cheesemaker’s touch to create the top-quality cheese you see going for $10-$15 a pound. It’s almost artful.” CMN

INGREDIENTContinued from page 31

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