As Trump enters White House, stakeholders eye new policies

January 24, 2025

WASHINGTON — On Monday, President Donald Trump took office and immediately took executive action on a number of issues while setting the stage for possible future action on tariffs and trade.

A number of industry organizations congratulated Trump and promised to work with the new administration on behalf of the food and agricultural sector.

The National Milk Producers Federation (NMPF) says it is ready and eager to work on a wide range of challenging issues as the new government takes shape.

“Congratulations to President Donald Trump and Vice President JD Vance as a new administration begins,” says NMPF President and CEO Gregg Doud. “As the nation’s representative of dairy farmers and the cooperatives they own, we will work with our nation’s leaders on the Trump-Vance team and in Congress to help America prosper and for its world-leading dairy industry to grow and thrive.”

Doud also congratulated the agriculture leaders of the recently sworn-in 119th Congress. Rep. Glenn “GT” Thompson, R-Pa., continues as chairman of the House Agriculture Committee, while Sen. John Boozman, R-Ark., takes over the Senate’s farm panel. Committee ranking members are Sen. Amy Klobuchar, D-Minn., and Rep. Angie Craig, D-Minn.

“U.S. agriculture is blessed with strong, bipartisan leadership on its agricultural committees,” Doud says. “We are grateful for GT Thompson’s leadership on whole milk legislation and his successful advocacy on the ‘higher of,’ as well drafting an overall strong farm bill that met dairy needs and his work on the Dairy Margin Coverage program. Meanwhile, Rep. Craig has been a strong supporter on many dairy issues, an active voice on agricultural trade and a co-leader on bipartisan feed legislation to support innovation in dairy.

“In the Senate, Sen. Boozman also released a strong farm bill framework that included numerous key dairy items, and we are grateful for his advocacy on agricultural tax issues among other dairy priorities,” Doud adds. “And Sen. Klobuchar as the new ranking member has been a tireless champion of dairy through her work on Dairy Margin Coverage, her sponsorship of the Ocean Shipping Reform Act, her attention to Canada trade issues and her support for whole milk.”

Doud also called for swift confirmation of Brooke Rollins to become the next agriculture secretary and noted the many key issues that await her, the administration and the new Congress over the next few months. Just a few of them include: passing a five-year farm bill, meeting agricultural workforce needs, creating new trade opportunities, bringing whole milk into school lunches, building an FDA that enforces its own standards of identity and ensuring a fair tax system that allows dairy producers and cooperatives to thrive.

The National Association of State Departments of Agriculture also congratulated Trump on his inauguration and said it looks forward to working with his administration to champion solutions for food and agricultural production.

“State departments of agriculture are steady leaders in helping communities solve some of rural and urban America’s most complex challenges of making certain all Americans have access to an abundant and nutritious food supply,” says NASDA CEO Ted McKinney. “As co-regulators with the federal government on environmental, agricultural and food safety policies, NASDA will work with the Trump administration to ensure agriculture leads the way toward a healthy and resilient world.”

Consumer Brands Association President and CEO Melissa Hockstad alluded to Americans’ concerns over costs of living in her congratulatory message to Trump.

“His successful campaign resonated deeply with voters concerned about economic security and inflation,” she says. “As the country’s largest manufacturing employer, supporting over 22 million jobs, the consumer packaged goods industry stands ready to work with the president and his administration to strengthen America’s economy and ensure all Americans have access to safe, affordable, high-quality food, beverage, household and personal care product choices.”

On the first day of his presidency, Trump signed an order on “Delivering Emergency Price Relief for American Families and Defeating the Cost-Of-Living Crisis” that directs heads of all executive departments and agencies to deliver emergency price relief to Americans, consistent with applicable law. This includes pursuing actions to lower costs of housing and appliances and eliminating climate policies that increase the costs of food and fuel.

Also on Monday, Trump signed the “America First Trade Policy,” directing agencies to investigate and address “unfair and unbalanced trade” and recommend provisions that could be used to impose tariffs. This memorandum orders the results of the investigations, findings and recommendations be delivered in a unified report by April 1, 2025.

However, Trump also told the press that he may impose a 25% tariff on goods from Canada and Mexico beginning Feb. 1.
The Cheese Importers Association of America (CIAA) analyzed these proposed tariffs in its latest bulletin (https://theciaa.org/wp-content/uploads/2025/01/CIAA-Bulletin-1.23.25.pdf) and noted that Trump’s stated date of Feb. 1 for tariffs on Canada and Mexico contradicts the April 1 date that the investigation report is due. CIAA adds that imposing tariffs so soon also would negatively impact a number of U.S. manufacturing operations as well as finished good prices, and that Canada and Mexico have indicated they would retaliate with their own tariffs. However, CIAA says it believes it is more likely that any formal decision-making regarding the tariffs will occur by the April 1 deadline stated in Trump’s order.

“CIAA has been working with the International Cheese Council of Canada to issue a joint statement emphasizing how important dairy trade continues to be between the U.S. and Canada,” the bulletin says. “CIAA also intends to work with representatives from Congress to amplify these concerns to the appropriate secretaries and government agencies once all the relevant members have been confirmed.”

CMN

Dairy grants spur innovation, improvements for the industry

January 24, 2025

By Taylor Froelich

MADISON, Wis. — Dairy grants are one tool many companies can use to prompt innovation with new processes, products and market development, either through local farmer’s markets or through state and regional initiatives, as well as internationally with export programs.

Grants can be offered and funded through private or government organizations. Most grant programs that occur in the United States originate from local, state or federal governments.

Government funding through Dairy Business Innovation Initiatives (DBII) was established with the 2018 Farm Bill. These are distributed to processors and producers through the grant application and allocation process managed by regional dairy organizations.

Dairy grants are awarded regionally through various dairy organizations throughout the United States. Some of these include the Pacific Coast Coalition-Dairy Business Innovation Initiative (PCC-DBII) on the West Coast; the Dairy Business Innovation Alliance (DBIA), a partnership between Wisconsin Cheese Makers Association (WCMA) and the Center for Dairy Research (CDR), in the upper Midwest; and the Northeast Dairy Business Innovation Center (NE-DBIC) in the Northeast. At least 50% of all DBII funding must be distributed as direct grants to dairy businesses.

The NE-DBIC, based in the Northeast, is funded and run by Vermont’s Agency of Agriculture, Food and Markets, unlike other regional programs that are run by universities. This allows grants offered through NE-DBIC to focus on programs and opportunities that regional stakeholders recognize as an area need.

PCC-DBII focuses largely on the dairy processing side of the business rather than animal husbandry, says Susan Pheasant, PCC-DBII “cowkeeper” and director of the Institute for Food and Agriculture at California State University, Fresno.

DBIA offers two direct-to-business grant programs: Dairy Business Builder and Dairy Industry Impact.

The Dairy Business Builder program is designed to help small- and mid-sized dairy farms and processors diversify on-farm activity, create value-added products, and enhance dairy byproducts or export programs. The Dairy Industry Impact program focuses on targeted topic areas that have the potential to positively impact the dairy industry as a whole, such as proposals for projects related to exports or sustainability, says Emily Slatter, program coordinator for DBIA.

Existing dairy farms or dairy manufacturing/processing businesses in DBIA’s 11-state region can apply for any grants offered with a proposal that strives to meet at least one of DBIA’s goals.

The funds available for grants match the size and scope of the company applying for the grant to adequately fulfill their needs.
NE-DBIC offers farm grants, processor grants and technical assistance grants. Some farms also are processors, so there is overlap for the number and type of grants they can apply for.

The smallest grants awarded are around $5,000 for trade shows, but some grants for processor expansion are up to $1 million, says Laura Ginsburg, dairy strategy and innovation manager for Vermont Agency of Agriculture, Food and Markets.

Additionally, grants vary in farm size, with funds going to small artisan farms with only five cows up to large farms/processors with more than 3,000 cows.

PCC-DBII focuses a lot of its grants on economic recovery from pandemic-related situations, product innovation, and milk usage for producing and marketing higher-value dairy products.

Norm Monsen, vice president of the agriculture division at Creative Business Services (CBS)-Global, previously served with the Wisconsin Department of Agriculture, Trade and Consumer Protection, which provides grant funding, and the Dairy Business Innovation Center, which distributed grants to dairy businesses. He notes that often a grant applicant does not have the capability, capacity or resources to innovate or introduce new products to market, but knows there is an opportunity if awarded a grant.

For example, a particular community may have a need for an ethnic cheese. A dairy plant could see that opportunity but not have the means for it. A grant program can help the plant with development, processes, recipes and even going to market to fulfill that need for a specific community.

Eligibility requirements for grants are based on the project for which there is a need. A dairy development grant would be available to those who already are making products, as well as those who want to make products in dairy to get a foothold into the industry, Monsen says.

A grant applicant needs to determine early on what improvements they would like to make for their business and if their plan matches grant program qualifications.

“Writing a grant (application) can be challenging and takes special skills,” says Monsen. “An applicant can do it on their own, but they need to know it will take time and it can be frustrating.”

There are public resources available for businesses that would like to apply on their own, through government webinars, universities and university extension programs, and even talking to other grant winners, Monsen suggests. It also is common for grant applicants to contact an experienced grant writer with knowledge of the particular grant they are applying for to help them complete their application.

Both Monsen and Slatter recommend reaching out to Small Business Development Centers in local communities or at University of Wisconsin schools. These centers offer grant writing advisors and assistance for smaller or newer companies to help draft a business plan if they do not already have one.

DBIA also offers an informational webinar at the beginning of each grant cycle outlining the application and review process in great detail. The webinar also includes time for a live Q&A with DBIA staff, Slatter says.

NE-DBIC’s website, www.nedairyinnovation.com, includes a funding calendar listing upcoming grant opportunities for the year, details on who is eligible, who to contact for questions and past applications to view as examples for how to write a grant.
For the West Coast, information is available 24/7 on www.dairypcc.net, under the “funding opportunities” heading.

“Additionally, prior to each dairy business funding round, we hold multiple ‘office hours’ whereby interested dairy businesses can learn more about the opportunities and ask questions specific to the application, technical assistance and internships,” says Pheasant.

Carmen Licon, director of PCC-DBII and director of the Dairy Products Technology Center at California Polytechnic State University, San Luis Obispo, works with Pheasant to regularly submit grant applications to a wide variety of funders and programs, so applicants do not need the skills of professional grant writers.

A number of grant recipients also are developing their own network of contacts to share information, experiences and insights, not only for funding, but also for purchasing, equipment usage, marketing and more.

Monsen recommends planning for a grant application should start at the very minimum three months, but usually six months to a year before the grant deadline, especially for complicated grant applications.

Once grants are submitted at deadline, applications are scored or reviewed and then ranked to identify potential award winners. After that they are vetted by the award institution, and grants are distributed to those selected.

In each DBIA grant cycle, approximately 30%-40% of applications are approved for funding.

The complexity of the application and approval process varies based on the type of project. Milk storage and handling grants are more straightforward than a processor trying to switch over to all recyclable plastic, Ginsburg says.

NE-DBIC has an approximately 36% award rate, but that percentage will vary based on the grant program.

“The grant application process can be complicated, and there are many areas to consider. The best way to start is by defining the plan and supporting that plan with numbers,” says Joey Widmer, vice president of Widmer Cheese Cellars Inc., Theresa, Wisconsin. Widmer’s Cheese has received seven grants for various projects over the past five years, at both the state and federal levels.

Since each grant offers funding for different projects, Widmer’s has been able to improve small areas of the business, which helped improve many areas of the business as a whole, says Widmer. Various improvements were made for food safety, computer cybersecurity, engineering, new production equipment, new packaging equipment and overall modernization efforts for the plant.

“We are always striving to make continuous improvement within the plant while producing the highest-quality product. It can be time consuming and challenging yet extremely rewarding to find the best possible solutions to pursue with each grant opportunity,” Widmer says.

Once companies have received a grant, they must report results. Typical grant-funded projects have a one-year timeline, but companies can ask for an extension, which is usually granted. Reports on progress or updates on timelines are generally required twice a year, but sometimes quarterly if the project has a larger scope.

It is common, Monsen says, for an awardee to also contract their grant writer to do the reporting for them.

In spite of the efforts to apply and the competition for selection, grants are essential for advancing the dairy industry within the U.S. economy.

“A grant, if it meets its intent, will stimulate economic development — more jobs and more cash flow,” says Monsen.

In dairy, this means more profits throughout the whole structure, from the plant to the dairy farms and then to the communities and states where they are located. If a particular grant is awarded for export initiatives, it also will impact the global economy by creating jobs and revenue at both ends of the export chain.

“These grants have a huge impact on the U.S. economy. Grants allow dairy companies to stay in business and employ many people, starting with the farm, the dairy plants, distribution all the way to the store that sells the dairy products,” Widmer says.

CMN

Milk testing expands as FDA issues new rules for pet food

January 24, 2025

WASHINGTON — Last Friday USDA’s Animal and Plant Health Inspection Service (APHIS) announced an additional six states are enrolling in the National Milk Testing Strategy (NMTS). This brings the total number of states testing under NMTS guidelines to 36 since the first round of states joined in early December.

With the enrollment of six additional states, the NMTS will account for bulk milk tank samples from two-thirds of the nation’s dairy herds, or nearly three-quarters of the nation’s milk production. This data will further enhance understanding of H5N1 presence among dairy herds for USDA and its federal partners. The six latest states enrolling in the strategy include: Arkansas, Louisiana, Nebraska, New Hampshire, North Carolina and West Virginia. This brings USDA closer to conducting mandatory, nationwide bulk milk surveillance in all 48 contiguous states.

USDA’s NMTS involves five stages that describe a state’s testing activity and the presence of H5N1 in that state. Of the 36 states enrolled, 17 states are considered to be in Stage 2, meaning they have state-level bulk tank sampling programs already underway. California, Michigan and Nevada are considered to be in Stage 3, meaning that they are affected states that have rapid response measures in place to address detections. Sixteen states are in Stage 1, meaning that silo testing is underway or is set to begin imminently. Mississippi has moved to Stage 4, which means all dairy herds in the state are considered to be unaffected. Mississippi will continue sampling to demonstrate absence of the virus.

USDA continues to work directly with states to bring them on board as quickly as possible while also accommodating state-specific needs based on their infrastructure, state personnel availability and other considerations.

Also last Friday, FDA announced it has determined that it is necessary for manufacturers of cat and dog foods who are covered by the FDA Food Safety Modernization Act Preventive Controls for Animal Food (PCAF) rule and using unpasteurized milk, eggs or uncooked meat to reanalyze their food safety plans to include H5N1 as a known or reasonably foreseeable hazard.

FDA is tracking cases of H5N1 in domestic and wild cats in California, Colorado, Oregon and Washington state that are associated with eating contaminated food products. The agency notes that while scientific information is evolving, at this time it is known that H5N1 can be transmitted to cats and dogs when they eat products from infected poultry or cattle, including unpasteurized milk, that have not undergone a processing step that is capable of inactivating the virus, such as pasteurizing, cooking or canning. Cats in particular can experience severe illness or death from infection with H5N1.

Under the PCAF requirements, animal food businesses must conduct a reanalysis of their food safety plan when FDA determines it is necessary to respond to new hazards and developments in scientific understanding.

There also are several practices FDA is encouraging pet food manufacturers and others in the supply chain to use to significantly minimize or prevent H5N1 transmission through animal food, including seeking ingredients from healthy herds or flocks, and taking processing steps such as heat treatment that are capable of inactivating viruses. Heat treatments have been shown in recent studies to be effective for inactivating H5N1 in milk, meat and egg products. Another practice would be to implement a supply-chain-applied control to provide assurance that ingredients used in animal food do not come from H5N1-infected animals.

CMN

Interest, innovation in cottage cheese continues to flourish

January 17, 2025

By Rena Archwamety

MADISON, Wis. — Cottage cheese, long confined to lonely corners of the salad bar or hidden between layers of lasagna noodles, over recent years has emerged a social media star thanks to its viral success on social media platforms. And while TikTok’s future may now be in jeopardy, experts aren’t questioning the future of this cultured staple that has starred in recipe videos ranging from protein breakfast bowls to a pizza topping to frozen desserts.

“There’s a mindset of, ‘What can we use cottage cheese for as an ingredient?’ It’s high in protein, low in fat, and can be used instead of Ricotta or as a cream. Also, the flavor of cottage cheese is so mild that people could use it with sweet or savory,” says Carmen Licon, director of the Pacific Coast Coalition-Dairy Business Innovation Initiative (PCC-DBII) as well as director of the Dairy Products Technology Center at Cal Poly.

“Cottage cheese is really regaining popularity,” she adds. “It’s been on shelves forever, a stable product, not necessarily growing. But I believe it’s because we didn’t have uses for it except for eating it as is. Application is very important, especially now as consumers are more aware of what they eat. Cottage cheese is a good source of protein, very digestible and is in a good spot to fulfill those desires from consumers.”

Licon adds that with more people using GLP-1 blockers such as Ozempic and other medications to combat diabetes and promote weight loss, high-protein foods are more important than ever. Users of these drugs have to pay attention to the protein they consume and where it comes from, putting cottage cheese in an ideal position for continued marketing and consumer education.
“I think as long as high-protein products are a big thing, the cottage cheese trend is going to stay,” she says. “We don’t have a lot of alternatives for high-protein products that are natural. Consumers really want a clean label, and cottage cheese — and dairy in general — is in a very good place to offer a clean label and very good source of protein.”

• Cultural influence

Good Culture, whose clean-label cottage cheese and other cultured dairy products have been in the dairy aisle since 2015, was at the center of the cottage cheese trend when it took off on social media.

The company started when co-founder and CEO Jesse Merrill saw an opportunity to breathe new life into the cottage cheese category, which he considered an overlooked superfood with more protein and less sugar than Greek yogurt. Merrill set out to create products that were nutritious, tasty and responsibly sourced, and that appealed to younger consumers looking for real food with simple ingredients. The clean-label-first approach and Good Culture’s commitment to sustainability and animal welfare resonated especially well with millennials and Gen Z consumers. Then the product went viral.

“In 2023, TikTokers began obsessively touting a love for cottage cheese, with Good Culture being featured in a disproportionate amount of the content,” Merrill says. “Younger consumers started sharing fun recipes like cottage cheese ice cream, pancakes, eggs, mustard dip combos, flatbreads, smoothies and more. As influencers, tastemakers and consumers shared their recipes featuring Good Culture on TikTok, the creativity seemed endless, increasing the popularity even more. Not only is cottage cheese a versatile ingredient for recipes, but it also is a high-protein, low-sugar, nutrient-dense snack that can be consumed straight from the cup or tub.”

Merrill notes the TikTok trend has remained steady, and recipes surrounding cottage cheese continue to grow. Last summer, Good Culture launched its campaign, “The Obsession is Real,” to capture the cultural moment cottage cheese has been having. Recently as part of this campaign, the company sent branded merchandise to influencers who already love Good Culture, further strengthening those relationships. Good Culture continues to keep an eye on social media to spot fans of the brand and send its products to help them experiment with new and creative recipes.

“When it comes to influencers, we’ve been intentional about partnering with those who are authentic fans of Good Culture,” Merrill says. “These partnerships focus on creating fun, inspiring recipe content while also amplifying our own efforts. Beyond the few partnerships that we’ve done, the majority of our social media buzz has been completely organic, and some of the biggest food influencers love and use Good Culture in their recipes, which get shared with their millions of followers. It’s been super fun to discover which big influencers are using Good Culture in super creative and delicious ways.”

Even before the TikTok trend, cottage cheese has been gaining popularity over the last decade. According to HP Hood, which has been manufacturing cottage cheese since the late 1960s and is the category leader in New England, its cottage cheese volume grew 20.9% from 2012-2019, and another 24.9% from 2019-2024 (source: Circana Syndicated Data). Overall from 2012-2024, the company has seen 51.1% growth in its cottage cheese volume.

Chris Ross, senior vice president of marketing and research and development at HP Hood, notes that the growing interest in cottage cheese isn’t the result of anything that has changed about the product over the years, but rather due to its unique offering and versatility that has sparked the interest of social media influencers and others.

“Hood Cottage Cheese is a superior product — perfectly blended, rich and creamy, and packed with protein,” he says. “While social media has certainly sparked new interest in the category, the longer-term growth is driven by the same reasons that consumers have sought out cottage cheese: high-protein, lower-calorie foods that can provide solutions for a healthier eating routine.”

• New ideas

There have been a number of new introductions in the cottage cheese category, from convenient single-serve packaging to innovative flavors. Hood’s cottage cheese portfolio includes 27 SKUs across four sizes and 13 flavors, including real fruit and savory herbs. Good Culture launched its first limited-edition flavor — Pumpkin & Spice — in fall 2024, and offers other flavors and milkfats, as well as lactose-free and organic varieties of its cottage cheese.

Original varieties, however, continue to be household favorites. Good Culture’s best-selling varieties are its Simply 2% Low-Fat and its Organic 4% cottage cheeses. Ross notes that for Hood, while single-serve SKUs are seeing the highest growth percentage, the main driver of cottage cheese volume growth is in 16-ounce and 24-ounce varieties.

“The convenience of single-serve containers can drive new consumer interest, but it is still a multi-serve play providing product value for the entire household,” Ross says, adding that Hood always is looking at future innovation opportunities.

Licon, in her current and previous roles as a researcher, professor and consultant on product development, has worked on new product innovations such as cottage cheese-based frozen desserts. One team of students from Fresno State University that she worked with won second place in the 2023 New Product Competition hosted by Dairy Management Inc. for “Cottage Core,” a high-protein premium cottage cheese-based frozen dessert with cherry cheesecake flavoring.

Additionally, Licon notes last semester for an in-school competition, a group of students at Cal Poly developed a flatbread using cottage cheese as more than 60% of the ingredient composition.

“It was absolutely amazing. That gives a very good idea of potential applications that can be explored. It could be ice cream bars, but made out of cottage cheese — that’s another opportunity I see that hasn’t been developed. I think the market will be there, but it’s a matter of someone willing to invest in new, innovative products,” Licon says.

“This topic is exciting. I love to see new products and how people get crazy about the next thing coming out,” she adds. “Greek yogurt became so popular, and that trend stayed. I hope it will be the same with cottage cheese.”

• Boosting capacity, quality

There is great potential for ongoing growth in the cottage cheese sector, both from increased consumption and new innovative products, but capacity will be a challenge, Licon notes.

“There may be companies wanting to invest in cottage cheese, or to use it as an ingredient, but there’s not a lot of supply right now. There’s a lot of co-label or private label,” she says.

Tetra Pak provides equipment for cottage cheese processing, along with other services such as general market observations and trends, treatment options for milk before it enters the vats, and efficient whey management to handle byproduct after the cottage cheese is made.

Tetra Pak’s sales support specialist and cheese expert Kinga Janowska, who helps identify needs and solutions for customers around the globe, notes that lactose-free options are trending, especially in Asian markets, and worldwide the majority of trends center on the high protein content of cottage cheese.

“It’s no longer used as a standalone product, but also used as an ingredient for making other products,” she says. “That’s keeping us, Tetra Pak, in the position to support customers with growing interest in cottage cheese production.”

Global biosolutions provider Novonesis also has seen great potential for cottage cheese growth in the United States and abroad.

“In the context of the U.S. dairy market’s global influence, exemplified by the rise of Greek yogurt, the burgeoning demand for cottage cheese could serve as a pivotal point for U.S. dairies seeking expansion beyond domestic borders,” says Gary Pieper, technical sales manager, Novonesis. “However, there remains substantial growth potential within the domestic market, particularly if producers can introduce more snacking varieties to cater to evolving consumer preferences.”

Tetra Pak handles requests from some of the largest cottage cheese producers to smaller companies looking to increase production. When companies are looking to improve and increase production of cottage cheese, Janowska says Tetra Pak’s closed-vat solution can help overcome a number of challenges

“A lot of companies still use the traditional approach of open tables and are looking for a solution. When they have demands to increase production, they ask how they can keep the hygienic aspect of it and prevent risk of contamination that can jeopardize production,” she says.

In addition to automating processes in the closed-vat solution, Tetra Pak also helps customers capture data on their processes, using artificial intelligence and digital products to help increase food safety, use fewer resources and boost competitiveness and production.

Throughout the process, she says the closed vats help to maintain the highest levels of hygiene, from reducing contamination during the cheesemaking process all the way through the CIP (clean-in-place) procedures, all done in a closed and monitored environment.

“The last few months, we’ve been approached by cottage cheese producers that want to bring it to another level. Some from the people side of it, to limit the number of operators,” Janowska says. “Our closed cheese vat requires less people to operate. The most intensive part, making the cut, is fully automated. There’s no need to keep people involved in that, and the more people, the more potential for human risk. What we’re trying to achieve is having the product be consistent, a product that tastes the same every day.”

Also providing solutions to improve cottage cheese processes, Novonesis offers robust starter cultures tailored for both traditional and modern cottage cheesemaking, as well as a wide range of coagulants and bioprotective cultures to enhance product freshness, reduce waste and protect brands.

“With increased production by producers, the need for reliable cultures has become more crucial than ever to avoid inconsistent products, high phage pressure and consumer complaints,” Pieper says.

He adds that for more than two decades, Novonesis has been at the forefront of selecting strains and creating blends specifically designed for use in cottage cheese production, and has led advancements in strain selection, direct inoculation and optimization of performance in curd production.

In recent years, the company has introduced the FRESCO 3000 series, which helps processors to consistently maximize the potential of their milk. Additionally, Novonesis continues to innovate its bioprotective cultures, with the availability of FreshQ Cheese 5, allowing customers to extend product freshness without compromising post acidification or flavor. Novonesis also has taken early steps in selecting Bio-Safe cultures, which naturally inhibit the growth of yeast and mold, providing an alternative to preserving agents such as potassium sorbate.

“As a high-value product, cottage cheese’s visual, textural and flavor attributes all contribute to customer satisfaction, presenting opportunities for both maintaining current business and capturing new markets. By focusing on freshness and clean fermented dairy flavor, the industry can cater to the loyalty of cottage cheese consumers while exploring untapped potential in flavor combinations, similar to the impact of peppers on the natural cheese industry,” Pieper explains.

“Though the spark for cottage cheese came from social media, it is here to stay for its ability to meet consumers’ needs for nutrition, high protein and convenience, making it an attractive option for health-conscious consumers seeking convenient and nutritious food choices,” he adds.

CMN

USDA final rule on amendments to FMMOs is effective June 1

January 17, 2025

WASHINGTON — USDA’s Agricultural Marketing Service (AMS) this week published its final rule amending the uniform pricing formulas applicable in all 11 federal milk marketing orders (FMMOs). The final rule will be effective June 1, 2025, for all changes, except for changes to the skim milk composition factors.

The final rule follows a 49-day national hearing held from Aug. 23, 2023, to Jan. 30, 2024, in Carmel, Indiana, where AMS heard testimony and received evidence on 21 proposals from the dairy industry. AMS issued a recommended decision July 1, 2024, followed by its publication in the Federal Register on July 15, 2024, which began a 60-day public comment period.

A total of 128 comments were received, analysis of which was included in a final decision that was issued Nov. 12, 2024, and published in the Federal Register on Dec 2, 2024.

Following publication of the final decision, AMS administered and oversaw 11 referenda whereby producers whose milk was pooled on an FMMO in the selected representative month of January 2024 had the opportunity to vote in favor of or opposition to the FMMOs proposed to be amended.

This final rule announces that producers in each of the 11 FMMOs approved the following pricing formula amendments:

• Updating the skim milk composition factors to 3.3% true protein, 6.0% other solids and 9.3% nonfat solids, with a six-month delayed implementation.

• Removing 500-pound barrel Cheddar prices from the Dairy Product Mandatory Reporting Program survey.

• Updating the Class III and Class IV manufacturing allowances to $0.2519 for cheese, $0.2272 for butter, $0.2393 for nonfat dry milk and $0.2668 for dry whey, all on a per pound basis, and the butterfat recovery factor to 91%.

• Returning the base Class I skim milk price formula to the higher of the advanced Class III or Class IV skim milk prices for the month. In addition, adoption of a Class I extended-shelf-life (ESL) adjustment for all ESL products equal to the average of mover plus a 24-month rolling average adjuster with a 12-month lag.

• Updating the Class I differential values to reflect the increased cost of servicing the Class I market.

The rule will be effective June 1, 2025, for all changes, except for changes to the skim milk composition factors. The amendments to skim milk composition factors will be implemented Dec. 1, 2025. These changes will apply to milk marketed on and after these dates, as applicable, and those changes will be reflected in both the advanced prices and pricing factors released before the start of the month and the class and component prices announced after the close of the month.

Copies of the final rule, educational materials and the entire hearing record can be found on the hearing webpage at www.ams.usda.gov/rules-regulations/moa/dairy/hearings/national-fmmo-pricing-hearing or obtained from USDA/AMS/Dairy Program; STOP 0225 - Rm. 2530; 1400 Independence Ave. SW, Washington, DC 20250-0225. Questions can be submitted to fmmohearing@usda.gov.

The National Milk Producers Federation (NMPF) thanked USDA and the dozens of farmers and cooperative leaders who successfully steered FMMO modernization to a successful conclusion.

“Dairy farmers and cooperatives have done what they do best — lead their industry for the benefit of all,” says Gregg Doud, president and CEO of NMPF. “This final plan will provide a firmer footing and fairer milk pricing, which will help the dairy industry thrive for years to come. We appreciate the monumental contributions across government and the dairy industry that made this happen. The industry, and all dairy consumers, owe all of you a debt of gratitude.”

Michael Dykes, president and CEO of the International Dairy Foods Association (IDFA), notes the reforms included in USDA’s announcement include important updates to elements of the FMMO system, including much-needed changes to make allowances.

“While the USDA process did not address all issues within the supply chain, particularly for Class I and organic milk processors, IDFA is optimistic that this process has laid the groundwork for a unified and forward-looking dairy industry, and we are grateful to our members who provided testimony and engaged in this process over the past two-plus years,” Dykes says.

The Wisconsin Cheese Makers Association (WCMA), whose priorities for FMMO reform closely aligned with IDFA’s, expressed its thanks to members who dedicated their time and efforts to updating FMMOs.

“We’re pleased to see that dairy farmers and farm cooperatives nationwide have adopted changes to the federal milk pricing system. Our dairy manufacturer members offered useful data on costs to produce the key dairy products cited in milk price formulas, and USDA staff acted decisively and impartially to use this data to update the 16-year-old formulas,” says John
Umhoefer, executive director of WCMA. “The entire industry agrees that, moving forward, cost of production surveys should be executed regularly by USDA staff to align current production costs with current milk pricing. The 5- to 7-cent-per-pound make allowance increases in this final order help modernize milk pricing but already reflect three-year-old production data from 2022. The dairy industry will benefit from congressional action to move forward a delayed farm bill, which offers language empowering USDA to execute regular cost of production surveys in the future.”

Zippy Duvall, president of the American Farm Bureau Federation (AFBF), says while AFBF is grateful that USDA listened its calls to switch back to the “higher of” Class I milk formula among other reforms, “the positive changes that will come as a result of these reforms will not be uniform for dairy farmers across the country and will be greatly offset by large, unjustified increases in make allowances.

“The FMMO system relies on fairness and transparency, and without a mandatory, audited survey of processing costs, dairy farmers’ checks will be reduced based on flawed and incomplete data,” Duvall adds. “We now call on Congress to help restore the balance of fairness in the federal order system. Legislation can and should direct USDA to collect a more accurate survey of processing costs, which will level the playing field for all.”

CMN

Leprino Foods marks opening of new plant in Lubbock, Texas

January 17, 2025

LUBBOCK, Texas — Leprino Foods Co., this week celebrated the opening of the first phase of its new 850,000-square-foot state-of-the-art manufacturing facility here. The plant will produce Mozzarella and nutrition products that will feed and nourish families around the world.

The ribbon-cutting event this week included representatives from Leprino, local government, business and higher education leaders, and dairy suppliers among other Lubbock dignitaries and community members.

“This year marks a significant milestone for our company — our 75th anniversary. It’s not only a celebration of our remarkable journey, but it is also a moment to envision our future, a future that includes Lubbock,” Leprino Executive Chairman Dan Vecchiarelli says. “The plant will be supplied by regional dairies and roughly 200 milk trucks per day.”

Vecchiarelli notes the investment in Lubbock will result in $10.6 billion over the next 10 years for the state.

“This massive project required over 4 million hours and involved 1,400 contractors on-site daily,” says Scott Conant, plant manager. “As our most sustainable facility to date, it embodies Lubbock’s drive for progress while championing sustainability in West Texas. With world-class food safety, operations, training and maintenance programs, all monitored and optimized through cutting-edge automation and instrumentation, this facility sets a new standard for excellence in our industry.”

John Osborne, CEO and president of the Lubbock Economic Development Alliance, says the new plant is a historic milestone for the city.

“Leprino’s facility will have a transformative impact on Lubbock’s economic landscape for decades to come,” Osborne says. “It’s been five years in the making (and is) the largest capital investment in Lubbock’s history — $1 billion, more than 600 jobs and the inception of a new industry. We are thrilled to celebrate this new chapter for our city and Leprino.”

The facility expands Leprino’s existing domestic network of manufacturing facilities located in California, Colorado, Michigan, New Mexico and New York. The company also has plants in the United Kingdom, the European Union and Brazil.

By March 2025, approximately 300 full-time employees will work at the 24/7/365 facility. With the second phase of the project kicking off later this year, hiring will continue — with a total of approximately 600 jobs by 2026. Positions will range from production operations and maintenance to technical engineers and human resources. The total annual payroll at the facility will be more than $33 million with competitive wages.

CMN

First U.S. death from bird flu is reported; monitoring continues

January 10, 2025

WASHINGTON — The first human death attributed to bird flu in the United States was reported in Louisiana earlier this week.

The Louisiana Department of Health (LDH) reported Monday that a patient who had been hospitalized with highly pathogenic avian influenza, or H5N1, has died. The patient was over the age of 65 and was reported to have underlying medical conditions. The patient contracted H5N1 after exposure to a combination of a non-commercial backyard flock and wild birds.

LDH’s extensive public health investigation has identified no additional H5N1 cases nor evidence of person-to-person transmission. This patient remains the only human case of H5N1 in Louisiana.

According to the Centers for Disease Control and Prevention (CDC), as of Jan. 6, 2025, there have been 66 confirmed human cases of H5N1 bird flu in the United States since 2024 and 67 since 2022. This is the first person in the United States who has died as a result of an H5 infection. Outside the United States, more than 950 cases of H5N1 bird flu have been reported to the World Health Organization, and about half of those have resulted in death.

In its ongoing monitoring of bird flu in dairy cattle, USDA’s Animal and Plant Health Inspection Service this week announced that 15 additional states have enrolled in the National Milk Testing Strategy (NMTS), bringing the total number of states to 28 in roughly one month since the program launched. These 28 states represent nearly 65% of the nation’s milk production. In addition, USDA is sharing updates on its expedited work to support vaccine development for use in poultry and bovine species as part of a multi-faceted effort to fight the spread of H5N1.

“Across the country, a strong network of public and private veterinarians, as well as state and local agriculture and health officials, have been working hand-in-hand with USDA to make the National Milk Testing Strategy as robust a weapon as possible in our fight against H5N1 and to ensure farmers have the information and tools they need to protect their businesses, their families, their workers and ultimately their communities,” says U.S. Agriculture Secretary Tom Vilsack. “USDA remains fully committed to working with farmers and our public health partners to evolve our strategy based on our latest findings so we can keep people and animals safe from this virus.”

On Wednesday, USDA announced the third tranche of states enrolled in the National Milk Testing Strategy, under which USDA and state and federal partners will gain a clearer picture of the presence of H5N1 among dairy herds in the United States to help inform the strategy and overall response efforts to prevent further spread of the virus. The 15 states enrolling in the strategy this week include: Alabama, Arizona, Delaware, Iowa, Georgia, Kansas, Minnesota, New Jersey, New Mexico, Nevada, Oklahoma, Rhode Island, Tennessee, Utah and Virginia. The addition of 15 states brings USDA closer to conducting mandatory, nationwide bulk milk surveillance in all 48 contiguous states.

Also in the past 30 days, USDA has identified H5N1 detections in dairy herds in two states, California and Texas, with Texas’ most recent detection reported on Dec. 13. As of Jan. 8., California and Texas are the only states with known active detections, though the National Milk Testing Strategy may reveal additional herds over time. However, testing to date, including early NMTS testing, has so far reaffirmed the absence of H5N1 in other states and has not yet led to new detections.

In December, USDA announced two earlier tranches of enrolled states, including California, Colorado, Michigan, Mississippi, Oregon and Pennsylvania, which enrolled on Dec. 6; and Indiana, Maryland, Montana, New York, Ohio, Vermont and Washington, which enrolled on Dec. 17. USDA continues to work directly with states to bring them on board as quickly as possible while also accommodating state-specific needs based on their infrastructure, state personnel availability and other considerations.

The National Milk Testing Strategy involves five stages that describe the state’s testing activity and the presence of H5N1 in that state. Of the 28 states enrolled as of this week, 11 states are considered to be in Stage 2, meaning they have state-level bulk tank sampling programs already underway. California is considered to be in Stage 3, meaning that it is an affected state that has rapid response measures in place to address detections. Two states are in Stage 1, meaning that silo testing is underway or is set to begin imminently.

Meanwhile, last week the U.S. Department of Health and Human Services (HHS) announced it would award $306 million to continue its H5N1 avian flu response.

“While the risk to humans remains low, we are always preparing for any possible scenario that could arise. These investments are critical to continuing our disease surveillance, laboratory testing and monitoring efforts alongside our partners at USDA,” says HHS Secretary Xavier Becerra. “Preparedness is the key to keeping Americans healthy and our country safe. We will continue to ensure our response is strong, well equipped and ready for whatever is needed.”

The Administration for Strategic Preparedness and Response will award approximately $183 million in additional funding for regional, state and local preparedness programs, including:

• $90 million to the Hospital Preparedness Program;

• $10 million to the National Emerging Special Pathogens Training and Education Center;

• $26 million to the Regional Emerging Special Pathogen Treatment Centers;

• $43 million to the Special Pathogen Treatment Centers’ Avian Influenza Preparedness and Response Activities; and

• $14 million to replenish equipment and supply caches for the National Disaster Medical System.

CDC will award approximately $111 million in funding for additional enhancements to monitor H5N1 at the local, state and national levels:

• $103 million to jurisdictions for increased monitoring of individuals exposed to infected animals, testing and outreach to high-risk populations (such as livestock workers); and

• $8 million to manufacture, store and distribute additional influenza diagnostic test kits for virologic surveillance.

The National Institute of Health will award approximately $11 million in funding for additional research into potential medical countermeasures for H5N1:

• $11 million to the Centers for Excellence for Influenza Research and Response contracts.

In California, State Veterinarian Anette Jones this week announced a ban on all poultry and dairy cattle exhibitions at fairs and shows until further notice in order to minimize the danger of exposing people and non-infected cows and birds to H5N1.

Additionally, the Los Angeles County Department of Public Health announced last month that five indoor-only, domestic cats in one household in Los Angeles County died after consuming recalled raw milk. Four of these cats were tested and confirmed to be infested with H5 bird flu. From a separate household in LA County, a house cat that consumed Monarch Raw Pet Food has been confirmed H5 bird flu positive.

Recalls are in effect for all sizes of raw milk and cream produced by Raw Farm LLC in California between Nov. 9-17, 2024; and all “Valley Milk Simply Bottled Raw Cow Milk and “DESI Milk Raw Cow Milk” distributed in quart, half-gallon and one-gallon plastic jugs with a code date of Dec. 23-Dec. 30, 2024 and produced by Valley Milk Simply Bottled of Stanislaus County.

Additionally, the Los Angeles County Department of Public Health is advising residents to not feed their pets Monarch Raw Pet Food sold at several farmers markets in California due to detection of H5 bird flu virus in product samples. Residents who fed their pets Monarch raw pet food products or other raw meat or dairy products and notice their pet is experiencing symptoms should immediately contact their veterinarian. The public health department adds that residents should avoid consumption of all raw milk and raw meat products and not feed these to their pets.

CMN

U.S. dairy exports decline for the second consecutive month

January 10, 2025

WASHINGTON — U.S. dairy product exports in November totaled 203,281 metric tons, down 7% from November 2023, according to the latest data released this week by USDA’s Foreign Agricultural Service (total exports, FAS).

The U.S. Dairy Export Council (USDEC) reports that U.S. export volume fell 9% in milk solids equivalent (MSE) terms in
November, marking two straight months of year-over-year declines, as nonfat dry milk/skim milk powder (NDM/SMP) shipments hit their lowest point of the year and low-protein whey posted its second consecutive monthly double-digit decline (blog.usdec.org/usdairyexporter).

USDEC adds that U.S. dairy export value in November rose 10% to $691.5 million, supported by elevated dairy commodity prices and stronger sales of higher-value cheese and high-protein whey.

USDA reports that U.S. dairy product imports in November totaled 78,966 metric tons, up 15% from November 2023.

Despite lower overall dairy exports, U.S. cheese exports continued to rise in November, posting 39,503 metric tons for its 11th consecutive year-over-year increase, USDEC reports. Latin America led cheese export gains, with exports to Central America up 26%, Mexico up 6%, South America up 17% and the Caribbean up 6%.

USDEC notes that in addition to the cheese increase, U.S. butterfat volume in November was up 126% as U.S. suppliers benefited from the price gap with the European Union and New Zealand, as well as strained European supplies.

Meanwhile, both milk powder and whey exports declined in November. USDA reports November NDM exports at 54,100 metric tons, down 20% from a year earlier, and whey exports in November were 41,126 metric tons, down 12% from November 2023.

USDEC says NDM/SMP exports declined from nearly every major buyer. Southeast Asia was down 43%, Mexico down 6%, South America down 28% and the Middle East/North Africa down 34%. However, a low-protein whey decline came almost solely from China, where sales fell 24%.

CMN

November cheese production declines 1.7% from year ago

January 10, 2025

WASHINGTON — November 2024 U.S. cheese production, excluding cottage cheese, totaled 1.152 billion pounds, down 1.7% from November 2023, according to data released this week by USDA’s Natural Agricultural Statistics Service (NASS). (All figures are rounded. Please see CMN’s Dairy Production chart.) November cheese production was down 6.1% from the 1.227 billion pounds produced in October, and down 3.0% on a daily average basis.

Italian-type cheese production in November totaled 492.7 million pounds, up 1.1% from November 2023. Production of Mozzarella, the largest component of Italian-type cheese production, totaled 387.1 million pounds in November, up 1.8% from a year earlier.

American-type cheese production in November totaled 448.0 million pounds, down 4.9% from November 2023. Production of Cheddar, the largest component of American-type cheese, totaled 310.8 million pounds, down 3.4% from November 2023.

Wisconsin was the leading cheese-producing state with 291.2 million pounds produced in November, down 1.0% from November 2023. California followed with 200.0 million pounds produced in November, down 3.3% from a year earlier.

U.S. production of butter totaled 170.8 million pounds in November, up 4.4% from November 2023. November butter production was up 1.1% from October’s 169.0 million pounds, and up 4.4% on a daily average basis.

CMN

Today's Cheese Spot Trading
Jan. 24, 2025

Barrels: $1.8200 (NC)
Blocks: $1.8325 (+1 1/4)

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