World Dairy Diary

IDFA Marketing Awards

The International Dairy Foods Association (IDFA) announced the winners of the 2007 at its SmartMarketing Conference today in Las Vegas. The awards honor the dairy industry’s top marketing, public relations and advertising efforts. There were many great entries, and HP Hood even won a print advertising award based on a post we reported back in the fall!

The “Best of the Best” — the Best Overall Award for Marketing Excellence — went to Mayfield Dairy Farms for its “Flavor Decision ‘06″ campaign. The company picked up four other awards for the campaign including Best Website, Best Overall Promotion, Best Overall Mixed Media Campaign and Best Overall Public Relations Campaign. Mayfield also took the prize for Best Billboard/Transit Ad in the fluid milk category.

LALA Foods, a first-time competitor in the Achieving Excellence Awards, won six silver awards: Best Billboard/Transit Ad in the combination category, Best New Product in the cultured category, Best Package Design in the cultured category, Best Promotion in the combination category, Best Mixed Media Campaign in the combination category and Best Ethnic Marketing Campaign in the combination category.

Wells’ Dairy took the award for the Best Overall TV Ad along with the award for Best Overall Mixed Media Campaign for multiple products/product lines. Saputo Cheese won for Best Overall Package Design promotional packaging. The award for Best Overall Print Ad went to HP Hood for its ad featuring a photo of a dropped ice cream cone and the headline “Life’s Full of Little Crash Landings”.

This year’s Best New Product responds to consumers’ growing interest in the nutritional value of omega-3 fatty acids. Omega Farms positioned its cheddar and monterey jack cheeses as a convenient source of omega-3 from fish oil. Dairy Field magazine also named Omega Farms as an Editor’s Choice pick for 2006.

Shamrock Farms took home the award for Best Overall Ethnic Marketing Piece for a radio spot featuring “Roxie” the 12-year-old “spokescow”. The Best Overall School Marketing Piece was awarded to Tetra Pak for the “Lunchbox School Kit”.

Probiotic Cheddar Cheese

Those north of the U.S. border now have access to the first probiotic cheese in Canada, made by Kraft foods. The cheddar cheese, called Kraft LiveActive, contains probiotics like those most often found in yogurt.

Probiotics are beneficial cultures promoted as being beneficial to digestive health and enhancing the immune system.

Dairyline Markets in Review

Dairy Markets Week in Review
Cash block closed Friday April 27 at $1.55 per pound, up 6 3/4-cents on the week, 39 cents above a year ago, and the highest price since September 2005. Barrel closed at $1.4950, up a penny on the week, and 36 1/4 cents above a year ago. Nine cars of block traded hands and 16 of barrel. The NASS U.S. average block price hit $1.4047, up 0.8 cent. Barrel averaged $1.4248, up 1.1 cents.

Butter closed Friday at $1.4075 per pound, up 1 3/4-cents on the week, and 22 3/4-cents above a year ago. Six cars were sold on the week, all on Friday, and the first sale in the spot market since April 16. NASS butter averaged $1.3482, up 2.3 cents. NASS nonfat dry milk averaged $1.4884, up 9.6 cents, and dry whey averaged 78.94 cents, up a penny on the week.

Provided courtesy of Dairyline.

Upstate Plant Grows

Upstate Niagara Cooperative, of New York, is celebrating the one year anniversary of its cultured dairy products plant, with a nine-percent growth in sales.

The new $32.5 million plant, which opened last May, is twice the size of the century-old plant it replaced on Scott Street in Buffalo and it can process twice as much raw milk. It also has eight filling lines, more automation and more modern and updated quality and environmental controls that, combined with the merger of the Upstate Farms and Niagara Milk cooperatives last July, has boosted efficiency and given the business greater economies of scale.

The West Seneca, N.Y. plant processes about 110 million pounds of raw milk each year. Much of that milk is turned into sour cream, cottage cheese and dip. But yogurt has emerged as the plant’s fastest growing product, distributed to customers in nearly every state, including Alaska.

St. Albans Loses Certification

It’s a shame to hear this story, St. Albans Cooperative Creamery, Inc. in Vermont, has lost its certification to perform the standard plate count test in its milk lab.

After failing two state evaluations, St. Albans Cooperative Creamery Inc., the largest milk handler in the state, has lost its certification to perform a routine and required milk test, the standard plate count test. The situation has forced the cooperative to ship milk samples out of state for testing since December at a cost of several thousand dollars a month.

In mid-March, the lab participated in a second split sample test done by the state of Pennsylvania. Results from that test could come back as soon as May. If the results are good, the lab would be returned to provisional status and would no longer have to ship samples to the lab. Full certification could be restored if the lab passes an on-site evaluation scheduled for September.

Dean’s Hires New COO

Dean Foods Co. has a created a new vice president and chief operating officer of ice cream position, and Rachel Cullen has been hired to fulfill the position.

Cullen most recently was COO at Englewood, Colo.-based Orange Glo International. She previously has worked at Unilever’s U.S. ice cream division, where she oversaw such brands as Breyers, Klondike, Popsicle and Good Humor. Dean Foods, a Dallas-based dairy products maker, said its annual ice cream sales are nearly $900 million, making it the third-largest ice cream and frozen novelty company in the United States. Alan Bernon, Dean’s dairy group president, said the segment has excellent growth potential.

Wisc. Shines at Cheese Contest

This is the latest of several releases I’ve posted on U.S. cheesemakers shining in competitions, both domestic and internationally. It leads me to believe – we have some pretty amazing cheesemakers in this country, and that’s something to be mighty proud of! Here, we learn more about the master craftsmen from Wisconsin.

At the March 2007 United States Championship Cheese Contest, the nation’s largest and toughest technical cheesemaking competition, Wisconsin’s Master Cheesemakers were well represented among top-tier winners. These veteran craftsmen have completed the rigorous three-year Wisconsin Master Cheesemaker® training program and, as a result, routinely make a strong showing in national and international competitions.

* Indicates Masters who participated on winning cheesemaking teams.

Flavor Supports Charity

A great promotion for a great charity – Bruster’s Real Ice Cream has created a new parfait flavor to support the charity Big Brothers Big Sisters of America. For every purchase of the flavor during the month of April, the company will donate 25 cents to the charity. Check out the video footage of the promotion being launched.

The new ice cream treat is a light, refreshing parfait made with Bruster’s creamy vanilla ice cream and fresh fruity sorbet made with real fruit.

Subcommittee Hearing on Milk Marketing Orders

This week, Congressman Leonard Boswell, Chairman of the House Agriculture Committee’s Subcommittee on Livestock, Dairy and Poultry, held a hearing to review the Federal Milk Marketing Order rulemaking procedures. The Federal Milk Marketing Orders were established in the 1930’s to make sure that milk, which is a highly perishable product, reached consumers at a fair price and in a time sensitive fashion. Periodically, the Agriculture Committee reviews the order rulemaking procedures to make sure they are keeping up with new product development and dairy production.

“The industry faces some fairly cumbersome hurdles, both administrative and legislative, that only serve to hamper efforts to improve the orders for all participants. It is clear that the government needs to be a facilitator, and not an impediment, to ournation’s dairy farmers and today’s hearing reemphasized that there is a consensus among the industry that more needs to be done. Since dairy is the only Farm Bill program that this subcommittee has jurisdiction over, I look forward to working with them as we move forward in this process,” said Subcommittee Ranking Member Robin Hayes.

Cheese Underground

Cheese Underground…what a great name for a blog! While researching the previous post, I discovered that Wisconsin artisan cheesemakers have also created their very own blog! Written by Jeanne Carpenter, cheese enthusiast, says that “Wisconsin seems to be a mecca for artisan cheesemakers. Whether it’s a dairy farmer who is building a cheesrie right on the farm, or a couple who have left their professional careers behind to craft a new American Original – I’ve found nearly everyone has an amazing story to tell.” Be sure to check her blog out!

Don’t miss a new opportunity to get the inside scoop on what’s new in Wisconsin’s dairy artisan world. The Cheese Underground is one writer’s experiences of new artisan products crafted by current and the next generation of Wisconsin dairy artisans.

Two New Master Cheesemaker Grads

This is an interesting fact – Wisconsin is the only state to offer a Ph.D cheesemaker training program. The training takes three years to complete, and certification is offered in a variety of cheeses. Wisconsin has now graduated 49 cheesemakers from the advanced-level training program, which was established in 1994.

In April, two new members joined the ranks of certified Wisconsin Master Cheesemakers. Paul Reigle, of Maple Leaf Cheese, Monroe, Wis., Yogurt Cheese, and Jerome Zibrowski, of Mindoro, Wis., Blue Cheese and Gorgonzola.

Also included in the 2007 graduating class are returning Masters Terry Lensmire of Trega Foods, Little Chute, and David Lindgren of Lynn Dairy, Granton. Both completed the program a second time for certification in additional varieties. Lensmire, a member of the first graduating class in 1997, previously earned certification in Cheddar and Monterey Jack and is now certified in Provolone and Mozzarella, as well. Lindgren, certified in 2001 in Mozzarella and Provolone, is now also a Master in Cheddar and Monterey Jack.

The Wisconsin Master Cheesemaker® Program is the only Master program in the United States. It is administered by the Wisconsin Center for Dairy Research and funded by Wisconsin dairy producers, through WMMB. Participants must be active, licensed Wisconsin cheesemakers with at least 10 years experience. Cheesemakers can earn certification in up to two cheese varieties each time they enroll and must have been making those varieties as a licensed cheesemaker for a minimum of five years prior to entering the program.

Are You a Product Judge?

The fifth annual World Dairy Expo Championship Dairy Product contest will once again be held at World Dairy Expo in October. The contest, sponsored by the Wisconsin Dairy Products Association, will now include categories for drinkable yogurts, whey based energy drinks, lime sherbet and cream cheese. Due to the new categories, the contest is looking for judges – could you be one?

The World Dairy Expo Championship Dairy Product Contest is the only nationwide contest to include all dairy products. “This unique quality has resulted in extraordinary marketing opportunities for those companies who take first place in their respective categories,” says Legreid. In addition, this contest is unique in that contest entries are submitted by companies, not individuals, allowing all company employees the opportunity to support and celebrate their entries’ achievements.”

Interested parties should send their resumes to Wisconsin Dairy Products Assn, 8383 Greenway Blvd, Middleton, WI 53562 by May 25, 2007. A WDPA contest committee will review all resumes and select the judges.

NMPF Presents Proposals for Farm Bill

The National Milk Producers Federation presented new farm policy proposals Tuesday to members of the Senate Agriculture Committee. Visit NMPF’s website to read all of the proposed policies.

In testimony Tuesday to the Senate, NMPF President and CEO Jerry Kozak said that “we firmly believe that a multi-faceted approach is necessary in order to create a more effective, market-oriented safety net.” Kozak said NMPF’s highly-detailed plan “was created with extensive input and discussion by dairy producers throughout the nation, taking into consideration the concerns of producers of all sizes. We have taken ideas that have been successful in the past and, where appropriate, built on them.”

NMPF is backing expansions of the existing Environmental Quality Incentives Program and the Conservation Reserve Program. Such programs need to place added emphasis on helping dairy farmers invest in technologies that convert animal waste to electricity.

NMPF Calls for Changes in Protocols

National Milk Producers Federation is calling for the USDA to a change the reviewing protocols of product pricing and inventory data it collects. Recently, it was discovered that nonfat dry milk prices have not been reported accurately in monthly government surveys.

The USDA last week said that the National Agricultural Statistics Service (NASS) had been collecting price data on nonfat dry milk sales that did not accurately reflect current market prices for the product. NASS officials will now go back 52 weeks to review pricing data for other nonfat dry milk sales in an attempt to clarify the veracity of its historic pricing data. Those reported prices are part of the information used to calculate the price that farmers receive each month in their milk checks.

But because of confusion and delays over the intent of the legislation, the NASS still does not have the full ability to audit such data, meaning the accuracy of its current reports may be suspect. Such was the case in 2000, when a warehouse reporting error resulted in a 32% miscalculation in domestic butter stocks. A similar situation occurred in 1999, when millions of pounds of cheese suddenly appeared in the NASS cold storage report. Both errors resulted in a sharp drop in farm-level milk prices.

Vote For The WMMB Board Candidates

The Wisconsin Department of Agriculture, Trade and Consumer Protection is trying to get out the vote for the Wisconsin Milk Marketing Board. The elections are coming up the week after next. Nine nominees have been certified which include:

District 3 Lincoln, Oneida, Price and Taylor counties
Candidate: Ed Jasurda of Phillips

District 6 Chippewa and Eau Claire counties
Candidate: Patricia Boettcher of Bloomer (incumbent)

District 9 Menominee, Shawano and Waupaca counties
Candidate: Don Robaidek of Pulaski

District 12 Portage, Waushara and Wood counties
Candidate: Ken Heiman of Marshfield (incumbent)

District 15 Adams, Juneau and Monroe counties
Candidate: Mary Cook of Wilton (incumbent)

District 18 Kenosha, Milwaukee, Ozaukee, Racine, Sheboygan, Washington
and Waukesha counties
Candidate: James Stemper of Plymouth (incumbent)
Candidate: Andrew Large of Port Washington

District 21 Crawford and Vernon counties
Candidate: Judy Wubbenhorst of Westby (incumbent)

District 24 Dane and Jefferson counties
Candidate: Mark Christenson of Lake Mills (incumbent)

For the media (and of course anyone online) the WMMB has created a page with pictures and bios.

DATCP is forwarding mail-in ballots to dairy producers who live within the eight districts. Producers who have not received a ballot by May 11 should contact Noel Favia at (608) 224-5140 or (800) 942-2474. Election results will be announced in June.

CWT Export Assistance Bids

Here’s the latest announcement from Cooperatives Working Together:

CWT announced today that it accepted nine export assistance bids last week for the sale of butter and cheese. One bid was from Dairy Farmers of America to export 57 MT (125,400 lbs) of cheddar cheese to South Korea.

These accepted bids increase CWT’s total 2007 export obligations for cheese to 5,128 Mt (11.3 million lbs); its YTD export obligations for butter to 4,572 Mt (10.1 million lbs) and its YTD anhydrous milkfat exports to 1,642 tons (3.6 million lbs).

Milk Production Slows

The latest milk price predictions from Bob Cropp, University of Wisconsin-Madison. Prices will continue to be strong in 2007.

Milk production growth continues to slow from the 2% even 5% monthly increases from the previous year during 2006. This has been a major factor in strengthening milk prices this year. Compared to year earlier, March milk production for the 23 reporting states was up 1.1 percent. Milk cows were 0.7% more than a year ago, but a continued low increase in milk per cow of just 0.4% held down the increase in total milk production.

In summary, all factors point to much higher milk prices for all of 2007 offsetting some of the higher feed prices. But, it is still uncertain whether cheese and dry whey prices will hold at levels that will allow current Class III futures prices to materialize. But, also if summer weather is unfavorable to milk production, prices this summer and early fall could be even high. Higher prices may result in some demand resistance similar to what occurred with record high prices in 2004.

Wisc. Farmland Meets Defeat

Farmers in Wisconsin who are trying to protect their farmland from development are meeting defeat when it comes to voters passing such referendums.

It was the first countywide vote in Wisconsin on a purchase-of-development-rights program that would let owners of farmland sell its development rights, virtually guaranteeing it would never be developed for housing or related purposes. County property taxes would help pay the cost of the purchases. On the same day, voters in the town of Mukwonago, 25 miles southwest of Milwaukee, rejected a plan aimed at saving some of the 4,800 acres of prime farmland left in that community. Elsewhere in Wisconsin, similar proposals are pending in La Crosse and Jefferson counties, and some rural communities have approved them on their own. A recent study by the nonprofit Corporation for Enterprise Development said cropland has been disappearing in Wisconsin faster than any other state in the region, with nearly 5 percent, or the equivalent of 30,000 acres a year, lost from 2000 to 2005.

The proposal drew opposition by the Wisconsin Realtors Association, but spokesman Joe Murray said his group’s $15,000 lobbying effort, mostly mailings and telephone calls, probably wasn’t much of a factor. He said his group is not against land conservation but was concerned that the plan would rely too much on property taxes, should have a more general funding source and had too many other unknowns.

Modern Logo Launched

Tuscan Dairy, an 89 year old processing company that serves New York City and nearby cities, is launching a new multi-media campaign to announce their redesigned logo. The company’s website is counting down the days to its relaunch….39 days to go! I really like the new logo, what do you think?

The updated logo gives the familiar Tuscan cow a modern make-over, combined with a fresh green background and places emphasis on the dairy’s history by adding the date, 1918. In support of the packaging re-launch, Tuscan Dairy Farms will also run a new television, radio, and digital campaign in the New York market beginning in April. The campaign features a Tuscan gallon of milk on the commuter rail showing off his hip, new label.

The dairy plans to roll out new packaging beginning with their fluid milk products including whole, 2%, 1% low fat, fat free milk and flavored milk in quarts, half-gallons and gallons. In addition, the dairy will update the entire family of products throughout 2007 to include the complete line of beverages, cultured dairy products and flavored milks.

Earth Day Tomorrow

One of the many email updates I receive is Cow-Calf Weekly. This week’s edition includes a thoughtful editoral by Alaina Burt. I know that dairy producers are this country’s number one Earth Day observers!

Since 1970, April 22 has been celebrated as Earth Day, and is now observed by 500 million people and governments in 175 countries. It’s one day that millions of people pause in the midst of their busy routines to step outside and enjoy the spring sunshine while pondering their personal contributions to the earth.

The take-home question is: how is your operation making Earth a better place? Your answer is what we need to communicate to the non-agricultural industry to debunk misconceptions about our business. We all have a great story to tell — whether it’s putting up duck houses, planting trees to reduce wind erosion, or implementing strategies to reduce and utilize manure waste — it’s our story, and it needs to be heard.