Researchers are looking into the presence of ‘sporeformers,’ on-farm bacteria capable of surviving the pasteurization process and negatively affecting dairy product quality. French-based multinational food company Danone is purchasing WhiteWave Foods. Darigold workers vote to strike. This and other U.S. dairy industry news can be found here.
Midwest Dairy Association funding ‘sporeformer’ research
The Midwest Dairy Association (MDA) is funding University of Nebraska (UNL) research designed to quickly identify the presence of bacteria capable of surviving the pasteurization process. The group of bacteria, called “sporeformers,” have the ability to affect dairy product shelf life and quality during storage.
Dr. Andreia Bianchini and her research group at the Food Processing Center/Food Science and Technology Department at UNL are trying to understand where these bacteria can be found around the farm and where they potentially enter the milk production chain.
A second phase of the research concluded in May. The findings indicate the environment around the milking parlor, more specifically the milking equipment and cow teats, are the main sources of “problematic” strains.
Bianchini’s group will evaluate potential interventions (i.e., different sanitation practices and bedding material) at the farm level to reduce the presence of sporeformers in the milk chain. Testing will run through summer of 2017.
The checkoff-funded MDA represents 8,000 dairy farm families across 10 Midwestern states, working to increase dairy sales, foster innovation and inspire consumer confidence in dairy products and practices.
Canadian dairy producers and processors negotiate ingredients strategy
Canadian dairy producer and processor associations announced the successful conclusion of negotiations to evolve the Canadian dairy system, including a national dairy ingredient strategy.
The agreement will now be submitted to industry constituents for consideration, with details made public after its final ratification, according to a release from the Dairy Farmers of Canada (DFC). If approved, the anticipated implementation date for the agreement is Sept. 1, 2016.
Negotiations between representatives of dairy farmer organizations and processors began in 2015.
Earlier this year, Agropur Cooperative became the first Canadian dairy processor to halt the use of imported diafiltered milk from the U.S. under a temporary national program to encourage the use of Canadian milk in cheese manufacturing.
The targeted pricing program gives dairy processors access to Canadian “Class 4(m)” milk protein concentrates at reduced prices, effective May 1 through July 31, 2016. The temporary program does not ban UF imports from the U.S. It does, however, make those products less economically competitive for use by Canadian processors.
Danone purchasing WhiteWave Foods
French multinational food company Danone will acquire U.S.-based WhiteWave for $12.5 billion, the companies announced July 7. The transaction, expected to close by the end of the year, is subject to WhiteWave shareholders approval and regulatory approval in both the U.S. and European Union.
According to published reports, WhiteWave must pay Danone $310 million if the deal falls through.
In the U.S., Danone is probably best known for its Activia and Actimel yogurt brands.
WhiteWave, spun off from Dean Foods in 2012, has been one of the fastest growing food and beverage companies in the U.S. and Europe for the past four years. Sales have grown at an annual compound rate of 19 percent, generating $4 billion in 2015 sales.
Its product lines include organic dairy, plant-based beverage and yogurt alternatives, fresh foods and coffee creamers. Among its brands are Horizon Organic, Wallaby Organic, Silk, Earthbound Farm and International Delight.
Market research firm Packaged Facts estimates the U.S. retail market for natural and organic foods and beverages will reach $87 billion in 2019, up from $53 billion in 2014. Dairy products, including milk and milk alternatives, yogurt, ice cream, eggs and cheese, make up about 30 percent of natural and organic food retail sales, second only to fresh produce as a natural/organic market category.
Fluid milk sales can bring a smile
Years after the milk mustache, fluid milk sales can wear a smile.
May 2016 packaged fluid milk sales totaled 4.05 billion pounds, up 0.2 percent from May 2015. Sales of conventional products totaled 3.83 billion pounds, down 0.4 percent, while sales of organic products, at 217 million pounds, were up 11.3 percent.
On the conventional side, whole and flavored whole milk sales continued to outpace last year’s sales. Sales of organic whole milk were up 25.5 percent compared to a year earlier.
Tom Gallagher, chief executive officer of Dairy Management Inc., said the numbers reflect innovation and promotion efforts to revitalize the fluid milk category.
Read the full Progressive Dairyman article.
Union, Darigold tentatively agree to contract
A tentative labor agreement between Teamsters Local 117 and Darigold was reached on July 12. A contract ratification vote was planned at Progressive Dairyman’s press deadline.
The contract involves 220 dairy workers and lab technicians employed at the company’s processing plants in Seattle and Issaquah. A previous contract expired on May 31, 2016.
Earlier in the month, the union announced members had voted 159-1 in favor of a strike.
Darigold is owned by more than 500 members of the Northwest Dairy Association. Workers at the Issaquah plant make butter, sour cream, and cottage cheese, while workers in Seattle process hundreds of thousands of gallons of milk every year, supplying Costco, Walmart and other grocery stores throughout the Pacific Northwest.
Canadean: Developing economies to drive growth in global dairy, soy food market
The global dairy and soy food market will grow at an average compound rate of 4.6 percent annually through 2020, according to consumer researcher firm Canadean.
This “cautious growth” will be driven primarily by a rise in per capita dairy consumption in emerging and developing markets in Asia-Pacific (APAC), Middle East and Africa (MEA) and East European regions. Consumption of milk in North America is currently declining as consumers opt for alternative beverages.
Consumers in emerging countries place a greater emphasis on nutritional value, following health and wellness trends, while consumers in developed markets tend to base their beverage choices on their level of personalization, whether they can be consumed on-the-go and whether they can provide a novel experience.
CWT assists with export sales
Cooperatives Working Together (CWT) export assistance bids accepted for the week ending July 8:
• Butter – 1.6 million pounds
• Cheese – 972,239 pounds
• Whole milk powder – 440,925 pounds
Bids were accepted from Dairy Farmers of America and Northwest Dairy Association (Darigold).
Year-to-date accepted bids:
• Cheese – 29.07 million pounds
• Butter – 6.95 million pounds
• Whole milk powder – 20.85 million pounds
• Milk equivalent (milkfat basis) – 576.85 million pounds
Source: National Milk Producers Federation
Kemps powers ‘Olympic dreams’ campaign
St. Paul, Minnesota-based Kemps LLC, a farmer-owned Midwest dairy company, is partnering with Wisconsin gymnast Marvin Kimble to promote the relationship between dairy products and Olympic athletes.
The “Milk's Power Their Dreams” campaign highlights Kimble’s story of growing up with a single mom who drove him to and from practice after school. Kimble credits a glass of milk each breakfast for supplying the protein and nutrients needed for his athletic development.
A “Power Their Dreams” contest encourages Wisconsin parents and athletes to nominate others with an inspiring story of family support and perseverance. The winning family entry will win them a trip for a family of four to the U.S. Olympic Training Center in Colorado Springs.
Nominations close Aug. 7 on Kemp’s Facebook page.
USDEC recaps busy six months of global dairy transactions, innovations
Global dairy businesses endured ongoing weak markets the first half of 2016, but they kept active with acquisitions, mergers, plant construction and product line launches, according to the U.S. Dairy Export Council (USDEC).
Departing from its traditional annual summary, the U.S. Dairy Exporter Blog provides a mid-year global dairy business report, featuring summaries of hundreds of dairy processing industry-related business transactions and innovations.
Dairy industry people
• The Wisconsin Dairy Products Association (WDPA) honored Ted Galloway with its 2016 Presidents Award. He is vice president of the Wisconsin-based Galloway Co. and general manager of its subsidiary Classic Mix Partners. The company processes dairy ingredients, including sweetened condensed milk, beverage bases and dairy dessert mixes/bases.
• The American Dairy Science Association (ADSA) elected three dairy industry professionals to leadership roles.
Karen Schmidt, professor of animal sciences and industry at Kansas State University in Manhattan, was elected ADSA vice president – Dairy Foods Division.
Brandon Nelson, director of innovation and technical services at Daisy Brand in Dallas, was elected to a three-year term as ADSA director – Dairy Foods.
Barry Bradford, professor of dairy cattle nutrition and metabolic physiology at Kansas State University, was elected to a three-year term as ADSA director — Production Division.
• The Idaho Academy of Nutrition and Dietetics elected Crystal Wilson, RD, as president-elect of its board of directors. Wilson is Idaho Dairy Council vice president of health and wellness.
• The Wisconsin Milk Marketing Board (WMMB) promoted Abby Despins as director of national product communications, where she will spearhead the organization’s national public relations and social media campaigns. PD
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Dave Natzke
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