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

Dairy leaders share outlook for pricing, trade, innovation

January 3, 2025

MADISON, Wis. — Cheese Market News is pleased to bring you our annual Year in Review, a written Q&A panel featuring insights from cheese and dairy executives on issues that impacted the dairy industry in 2024, as well as a look ahead to what’s coming in 2025.

In the following pages, panelists share their outlooks on 2025 dairy commodity pricing, the incoming administration, dairy innovation and sustainability, and the prospects for a new, five-year farm bill as the industry looks to vote on amendments to milk pricing formulas.

We would like to thank our panelists for taking the time during the busy holiday season to share their insights with our readers. This year’s panelists are:

• Luke Buholzer, vice president of sales, Klondike Cheese Co., Monroe, Wisconsin;

• Kimberlee J. (KJ) Burrington, vice president of technical development, American Dairy Products Institute (ADPI), Elmhurst, Illinois;

• Peter C. Gallo, executive vice president of business development, Joseph Gallo Cheese Co., maker of Joseph Farms Cheese, Atwater, California;

• Erica Maedke, vice president, Ever.Ag Insights, Chicago;

• Kevin Roach, CEO, Harpak-ULMA Packaging; and

• Rebekah Sweeney, senior director of programs and policy, Wisconsin Cheese Makers Association (WCMA), Madison, Wisconsin.

How do you believe U.S. dairy prices will track for key commodities in 2025? What will be the key factors affecting U.S. dairy prices over the course of 2025?

Gallo: Whey protein isolate (WPI) demand is insatiable, and whey prices could stay firm well into 2025, supporting milk prices. Every penny move in dry whey is equal to $0.06 per hundredweight in Class III milk. U.S. whey futures for January are trading around $0.695 per pound. A drop back to $0.45 per pound — closer to where European Union (EU) prices are sitting — in the short term is unlikely and would take about $1.47 per hundredweight out of the January Class III price. As U.S. milk solids and cheese capacity continue to grow, it’s crucial for U.S. cheese to remain competitively priced to grow domestic and export demand.

Maedke: The team here at Ever.Ag has a bearish view of the year ahead relative to current futures prices. The root causes: (1) expanded cheese capacity and (2) lots of fat around. With many new plants in the early phases of startup, the tidal wave of cheese is just beginning. We believe the milk solids will be there to allow full production — whether from local raw milk or distant condensed milk. And while Class III may pull milk away from balancing plants, we don’t see a big pop in butter prices on the horizon. Fat off the farm and the resulting butter in storage should be more than adequate.

Sweeney: USDA is forecasting drops in 2025 pricing for Cheddar cheese and butter, offset by gains for nonfat dry milk and dry whey — but dairy commodity prices are subject to a handful of wild cards in the year ahead.

We’re expecting an influx of milk, as farmers grow their herds and production, but we could also see a significant drop at any time should cases of H5N1 infection spike across the country. We’re also anticipating significant new processing capacity — particularly for cheesemaking — following completion of major greenfield and plant expansion projects. With processors eager to fully realize their production bandwidth, demand for milk may rise. Then, increased consumption will be necessary to maintain healthy price points. Domestic demand is expected to grow, but only marginally — underlining the importance of export opportunity. In 2024, the U.S. saw record cheese exports, with 37% going to Mexico, though tariff talk from the new administration and the volatility of the peso threaten that prospect.

How do you foresee the incoming administration impacting the cheese and dairy industry in areas including international trade, environmental and food safety regulations, school and nutrition services, and dietary guidelines?

Buholzer: The incoming administration has been very vocal about placing tariffs on dairy goods coming in from Canada, and it is very likely that Canada will react with retaliatory tariffs. The U.S. is Canada’s largest trading partner.

Burrington: It is always difficult to speculate which campaign promises from an incoming administration will be implemented during their term of office. Looking at international trade and the mention of additional tariffs, tariffs will just make imported goods more expensive for consumers. In many cases, there isn’t a U.S.-made product that consumers can purchase as a substitute for the imported one. The U.S. has spent a lot of time on food safety regulations, especially since the Food Safety Modernization Act was signed into law in 2011, which has helped the U.S. to create the safest food supply in the world. It will be important to maintain those strict standards to keep people safe and keep up consumer confidence in the food they purchase. School nutrition services have become more important than ever as many families rely on schools to feed their children nutritious meals during the school year and in summer programs. The first publication of the dietary guidelines was in 1980. Though people don’t necessarily follow the dietary guidelines in their own diets, increasing the awareness and understanding of the dietary guidelines for adults and children is important for the health and well-being of all. Just as important is making nutrient-dense foods more affordable and accessible.

Gallo: The Trump administration can help increase the competitiveness of U.S. agriculture exports by negotiating more favorable trade agreements with major importers like China, Mexico and India. It remains to be seen what can be done to remove the protectionist trade barriers presented by the Canadian quota system.

Increased scrutiny and food safety regulations are inevitable and will foster greater consumer trust long term. Muhtar Kent, the former CEO of Coca-Cola, said it best: “A brand is a promise, a good brand is a promise kept.” At Joseph Farms, our consistent quality and food safety are paramount, and we’re continually improving every day. We are SQF-certified, which is becoming an industry standard.

Maedke: With roughly 16% of U.S. milk solids moving for export, international markets are essential. Dairy producers and manufacturers are rightfully concerned about tariffs and retaliation from our largest trading partners (Mexico, Canada and China). World leaders are taking President-elect Donald Trump at his word and reaching out to negotiate already, so I’m hopeful for a quick resolution.

As for food policy, Trump’s Cabinet-level picks bring diverse views to the table. Robert F. Kennedy Jr. and the “MAHA” (Make America Healthy Again) movement advocate for less chemicals, more organic foods, raw milk and other ideas that increase the cost of food. Brooke Rollins’ views on agriculture policy are less publicized, so I’m curious to see if her conservative leanings send her towards cuts in government spending (i.e. farm programs) or cheap food as national security. Either way, get out your popcorn because the show is about to begin.

Sweeney: Each new administration makes its mark on the dairy industry, and President-elect Trump will be no different, touching trade, business regulation, nutrition programs and more.

Dairy processors hope President-elect Trump can expand the positive impact of the U.S.-Mexico-Canada Agreement in working with Canada on fulfillment of its dairy commitments in 2025, and in reviewing and renewing the agreement in 2026. We also would cheer the development of new or expanded trade opportunities in growing global markets, particularly in Southeast Asia, Latin America, and the Middle East/North Africa region. Talk of tariff wars is cause for concern for many dairy leaders, who wish to avoid marketplace volatility and the possibility of increased equipment, packaging and construction costs.

President-elect Trump’s selection of Robert F. Kennedy Jr. to serve as Health and Human Services (HHS) secretary is likely to mean changes, as Kennedy has pledged to purge entire departments at the FDA, and to make raw milk legally available across the country — a concept WCMA members strongly oppose. Recommendations regarding carbohydrates, saturated fats and ultra-processed foods are also subject to adjustment as the Make America Healthy Again leader guides the update of U.S. dietary guidelines in 2025.

What is your outlook on the likelihood of passing a new, five-year farm bill in 2025? What are some key priorities or changes you wish to see implemented in this legislation?

Buholzer: The recent farm bill extension was a relief for farmers in 2025. Beyond that, we wish to see that the new 2025 Farm Bill will still have a sufficient income safety net, while providing funding for environmental impacts of climate change. Otherwise, we would expect to see rising food costs that could negatively impact our industry’s growth.

Gallo: Passing a new farm bill in 2025 is unlikely as the current bill was extended for a year and tight Republican control of Congress means less chance of passing a new bill. One key area of any farm bill is funding for the Supplemental Nutrition Assistance Program (SNAP). Everyone needs access to affordable, nutritious food! More than one in eight Americans are fed by SNAP, according to Circana’s “Understanding the Resilience of SNAP Shoppers” report. The latest data from USDA’s Food and Nutrition Service (FNS), through Oct. 11, show the number of SNAP participants at nearly 42.22 million, up 0.5% year-over-year. Based on data through Nov. 8, the SNAP household count was 22.48 million, up 1.1% from a year earlier, and the average monthly benefit stood at $358.19 per household and $190.75 per person, according to FNS. Seventy-nine percent of SNAP households included at least one family member who’s a child, an elderly adult or an adult with a disability, according to FNS. SNAP households account for nearly 24% of consumer packaged goods (CPG) spending in the U.S., according to data from Numerator. SNAP households spend 32% more per person than non-SNAP households, according to Circana. Overall, SNAP shoppers made 38% more CPG food and beverage trips than non-SNAP shoppers in the 52 weeks ended Sept. 8, according to Circana. It is vital to increase SNAP funds in the next farm bill to continue feeding millions of lower-income Americans; a decrease in SNAP would be bad for food retailers.

Maedke: With Republican control of Congress and the White House, I’m optimistic that new legislation will get passed. In 2024, the House Ag Committee moved a bill forward, so the new Congress isn’t starting from scratch. But there are new players and new power dynamics that will likely result in a few adjustments. With Robert F. Kennedy Jr. as Secretary of HHS, the strength of the MAHA movement is a wild card in the food policy debate. Brooke Rollins as USDA secretary is also an unknown in the agriculture policy space. With neither having run Cabinet agencies before, I’m curious to see which one will be more effective in driving change, and if either can materially influence new legislation coming from Capitol Hill.

Sweeney: Republicans have won control of both houses of Congress and the White House, so they should be able to work together to approve a new, five-year farm bill in 2025.

WCMA members are advocating for increased support for federal nutrition programs that make milk and dairy foods available to all Americans. We’re also leading the charge for boosted funding for the Dairy Business Innovation Initiatives, which have provided grants and technical assistance to support hundreds of dairy businesses increase their valued-added production, launch new export endeavors and diversify revenue streams. WCMA is also pushing for mandated biennial cost of production surveys to ensure accurate make allowances in federal orders, reauthorization and expansion of the Healthy Fluid Milk Incentives Projects, continuance of the Dairy Forward Pricing Program and an expansion of the Dairy Products Donation Program.

What are your thoughts on the recent amendments to federal milk marketing orders (FMMOs)? What are the potential benefits and/or drawbacks of these changes?

Buholzer: The recent changes could have a negative impact on producer milk pricing, with improved margins for cheese manufacturers ... but manufacturers will potentially be looking at higher premiums to producers to support their supplier base, which could negate some of the lower costs to cheesemakers.

Gallo: The stark realities are the old federal order is outdated, and voting against current proposed amendments eliminates federal orders altogether. It’s an imperfect compromise and probably better than nothing at all.

Maedke: USDA’s task was to balance the competing interests at stake with the FMMO reform process. Dairy producers — those with the vote — will get more money. Processors will get a few carrots, namely improved make allowances. Consumers — the losers in this proposal — will pay another dime or so for a gallon of milk, which is likely to result in a minor cut to demand.

The only structural change to the formulas is the removal of barrel cheese from the Class III milk price formula. I believe this has the potential to disrupt the private market. With raw milk costs (based on blocks) disconnected from the finished product price (based on barrels), regulated barrel manufacturers face far greater risk than before. How they handle this mismatch may very well determine the fate of their business.

Sweeney: WCMA zeroed in on lobbying for increased make allowances as FMMO revisions were debated over the past two years. USDA’s FMMO decision in 2024 on that point is far from a fix for dairy manufacturers and processors facing rising production costs, but it is a move in the right direction. It’s also a credit to the commitment of WCMA members — and members of other dairy advocacy groups, like International Dairy Foods Association — to make their voices heard.
WCMA is now focused on securing broad congressional support for mandatory biennial cost of production surveys, to ensure accurate make allowances in the future and, hopefully, a more expeditious FMMO revision process in the future.

What types of dairy products do you see the most opportunity for in the coming year in terms of innovation, growth or marketing opportunities?

Buholzer: Companies will continue to move toward producing more cheese and high-protein dairy products with value-added packaging technology. Growth will continue with plant productivity gains. Private label will continue to make gains, alongside strong packer brands.

Burrington: We will continue to create innovative dairy products, but it’s not easy to come up with products that change the market like Greek yogurt and/or ultrafiltered milk. Who would have thought you could make a hydration beverage from milk? I think we have a real opportunity to educate consumers about the nutrient density that our existing dairy products have. We have taken dairy products for granted and assumed that everyone understands their nutritional quality and that people will always consume dairy products. Protein quality is one of the important differences between dairy proteins and plant proteins, yet few consumers understand those differences. Protein will continue to be a focus in 2025, especially as the use of GLP-1 medications increases. Dairy proteins will be important for the GLP-1 users to help them maintain muscle as they lose weight. The development of innovative products and nutritional discoveries have happened because there has been consistent support for research. If the U.S. hopes to maintain its competitiveness in the world, then continued support of academic research will not only provide new technologies and new products but also trained people to work in the dairy industry for years to come.

Gallo: We see a revolution of dairy product innovation! As GLP-1 medications become more prevalent, consumers are looking for more protein in their diet. We are ecstatic to launch our own branded organic WPI in 2025 with decadent flavors like Double Chocolate Brownie to indulge in.

WPI is essentially fat free, typically containing less than 0.5% fat, which is perfect for consumers taking GLP-1 medications or focused on weight management. Low in calories and high in protein, WPI may help boost your body’s natural GLP-1, which helps control the feeling of hunger. WPI may also be more satiating than other types of protein, which can help reduce hunger and aid in weight loss. WPI encompasses more than 90% pure protein, packed with 25-30 grams of protein per scoop with less than 1.5 grams of carbohydrates/lactose per serving.

The global population is aging as birth rates decline, and with advances in health care, people are living longer. WPI is ideal for healthy aging and those with an active lifestyle, packed with important minerals such as calcium that promote stronger bones, as well as iron, magnesium, phosphorus, potassium, selenium, sodium and zinc. WPI also contains vitamin B12 and α-lactalbumin, which can help improve cognitive functions like memory and learning. It also contains all essential amino acids, and is especially rich in branched chain amino acids, which can help with muscle recovery.

Joseph Farms Cheese will proudly label select varieties with our “Zero Grams of Lactose per serving” guarantee starting in 2025 as health-oriented product claims, like lactose-free, explode in popularity among consumers. We’re seeing unprecedented demand for premium quality branded cheese, especially healthy snacking options like String cheese. Consumers want convenience and bold flavor combinations, such as our New Joseph Farms Sliced 1.5-pound Variety Pack and New Joseph Farms Shredded 2-pound Cheddar Jack Blend, which we’re very excited to introduce at Kroger in March!

Maedke: Generally speaking, consumers want convenience, and they want protein. Where dairy intersects with these trends is where I see opportunity. With expansions in aseptic beverage capacity, I am hopeful there’s finally enough line time to grow and innovate in that space. The pipeline of whey protein ideas is rocking, but many may stall due to the extremely high WPC 80/WPI prices. After new cheese capacity gets going and adds whey solids to the market, prices may come down to a level where these new products can meet company profitability thresholds for launch.

Roach: The dairy sector is at a turning point. As we approach 2025, the opportunity to lead in sustainable cheese and dairy product packaging has never been greater. The mission is straightforward: reduce environmental impact while safeguarding product quality and shelf life. Advances in thinner, mono-material films and fully recyclable packaging are setting a new standard across a broad product spectrum. ULMA’s BetterSeal, for example, uses recyclable materials to deliver the same performance as traditional plastics without the environmental burden.

Paperboard-based solutions, such as G. Mondini’s PaperSeal and SliceFresh, are another game-changer in the cheese and dairy sector. These innovations cut plastic use by up to 80% while maintaining essential features like shelf life and structural integrity. Anti-moisture liners and 360-degree printed surfaces eliminate labels, reduce material needs and lower costs. Sustainability no longer requires a trade-off with functionality.

For producers, now is the time to act. Partner with suppliers who prioritize research and development in sustainable materials. Invest in machinery that minimizes energy use and waste. Choose recyclable packaging solutions, like PET-based films, and integrate automation for cheese packaging equipment to improve efficiency.

“Sustainable” is more than a trend — it’s a necessity. Aligning environmental responsibility with operational excellence positions producers to meet consumer demand, comply with ESG (environmental, social and governance) goals and lead in a rapidly evolving market. Those who innovate today will define the future of cheese and dairy packaging, regardless of product type.

Sweeney: Sales of functional dairy products such as high-protein yogurt, which consumers choose not only for taste but also based on their nutritional value, should continue to grow in 2025 as Americans maintain that they’re increasingly focused on finding healthier food choices. The cheese snack market is also an area primed for solid growth and continued innovation, with single-serve cheese products now projected to reach $75.1 billion globally. With up to 65% of adults around the world reporting some degree of lactose intolerance, lactose-free dairy production and marketing holds great potential.

The innovation and creativity of dairy processors is consistently impressive, and we have dedicated business leaders — as well as partners at the Center for Dairy Research and marketing outlets like the U.S. Dairy Export Council and Dairy Farmers of Wisconsin — to thank for recent and future success.

How are the dairy industry’s environmental stewardship goals progressing? What are some areas of success, and where is work still needed?

Buholzer: Plant water conservation, waste management, movement toward more recycling and more post-consumer recyclable packaging.

Burrington: The dairy organizations that are working on environmental stewardship are taking a farm-to-fork approach, which means more than focusing on the farm. All of our dairy processors have made improvements in the usage of water, chemicals, energy, packaging, food waste, supply chain and more. ADPI started a Sustainability Standing Committee (SC) in 2024 whose purpose is “The SC on Sustainability marshals ADPI expertise on a pre-competitive basis to identify gaps and leverage member strengths to achieve sustainability-related goals.” The SC has three areas of focus which are broken into subcommittees: 1) Extended Producer Responsibility (EPR) and circularity, 2) Product allocation and universal methodologies for product carbon footprinting (PCF) and 3) The “Navigator” Systems — global reporting initiatives and regulations. These working groups will work in tandem with other dairy organizations to work towards common dairy industry goals. It is key that the dairy industry makes a concerted effort to communicate the improvements that have already been made in environmental stewardship to consumers. Like our nutrition story, we have a sustainability story that needs to be told, and sustainable nutrition is an important part of the story.

Gallo: We are committed to achieving net zero. Our first milestone was in 2004 when we installed our methane digester, which has since generated 10 million kilowatt-hours (kWh) per year of green energy used to power our cheese plant, capturing more than 165,000 verified metric tons of CO2E (carbon dioxide equivalent), equivalent to removing approximately 33,000 cars from the road or powering 22,000 homes for a year. In 2016 we installed our first 2-megawatt solar array of 7,840 solar panels, which powers the majority of our farm and avoids an estimated 27,500 metric tons of CO2 emissions over the next 20 years. This reduction in greenhouse gas emissions is equal to planting more than 706,000 trees in the next 20 years or removing more than 292 cars from the road annually. The amount of power produced could power 282 average homes a year. In 2023 our new 7-megawatt solar array of 13,053 panels came online, powering the majority of our cheese plant energy needs while capturing 9,922 metric tons per year of CO2, the equivalent to powering approximately 1,250 homes and removing 2,138 cars per year from the road. We also maintain permanent wildlife habitats, utilize wildlife-compatible regenerative farming methods and have recharged over 10,000 acre-feet of surface water into the underground aquifer, replenishing vital groundwater. In 2026 we are considering state-of-the-art cooling upgrades that would make our cheese plant net zero by producing over 100% of our own solar energy needs!

The best opportunities to eliminate dairy emissions are on the farm by reducing enteric methane through cows’ feed, as well as better management of manure, soils and crops. Most of our dairies’ farms also produce their own renewable energy with solar and methane digesters. All our dairies are FARM (Farmers Assuring Responsible Management) certified, which encompasses animal welfare, biosecurity, environmental stewardship and workforce development. Efficient and progressive California dairy farms, especially those with solar arrays and/or methane digesters, can help make corporate sustainability goals a reality.

Maedke: My understanding is that the industry is making incremental progress towards reaching its sustainability goals. My colleague, Matt Gould, says about 4% of U.S. dairy farms meet 2030 goals. Viewed optimistically, that’s great progress five years ahead of schedule. A little more pessimistic take: the low-hanging fruit is already picked, and it’s only going to get harder. The biggest challenge I see is the conflict between less support from the federal government under Trump’s leadership but firm deadlines for compliance imposed by California and the European Union. Do companies have the long-term vision to keep pushing forward, or do they slow their efforts to achieve short-term profits?

Sweeney: Dairy processors can be proud of the work they’ve done — even in 2024 alone — to set and achieve sustainability goals that support environmental protection. Many companies and cooperatives are targeting carbon neutrality, making measurable progress via upgrades to energy-efficient equipment, and smart emissions reduction strategies, especially related to efficient logistics to limit fuel consumption. We’re seeing an uptick in dairy processors’ implementation of water recycling systems for cooling and cleaning, and in their investments in advanced wastewater treatment systems.

The needle will keep moving on stewardship; the work in this area will never be “done.” But, I think the most pressing need for our industry is to coalesce around metrics for reporting sustainability successes. As processors — and farmers — continue work to protect natural resources, we need to be able to offer consumers the data they want in a way that is transparent and consistent. WCMA is partnering with the Innovation Center for U.S. Dairy in 2025 in a host of seminars, workshops and webinars to advance that effort — and we invite you to join us!

Artificial intelligence (AI) is gaining traction, not only in the dairy industry but across various sectors. What do you think are some of the potential benefits and/or drawbacks of increased AI in dairy operations?

Buholzer: Potential benefits of managing formulations based on component costs, along with real-time plant operations with in-line testing to hit targeted product specs and quality targets. But like all new technology, if it is not implemented properly, it can have a negative effect on plant operations and planning.

Maedke: AI often changes the nature of work. Ever.Ag’s clients are seeing tremendous benefits from implementing our AI technology. Our Maternity Warden tool monitors cows near calving and calls for help when it’s needed. Simple but mundane work, now done by computers. We’re seeing lower stillbirth rates and fewer incidents of dystocia, all good things for animal health and farm profitability. I wish I had Ever.Ag’s Cheese Yield Optimization tool when I worked at the cheese plant. (More vats missed spec than I’d like to admit.) So the prospect of 1%-3% improvement in margin is huge for the bottom line in a commodity business with razor-thin margins.

Roach: Artificial intelligence transforms dairy packaging by driving smarter, faster and more efficient operations. By integrating AI into system operations, you can identify inefficiencies in production and packaging systems, reducing downtime and cutting costs. For example, predictive maintenance uses AI to detect wear patterns in equipment, enabling repairs to be scheduled before failures occur. This proactive approach saves valuable time and resources.

AI improves system performance by optimizing material handling and streamlining production flow. Advanced algorithms process large data sets to enhance consistency and reliability across operations. Combined with tools like system automation and Augmented Reality (AR) for service and maintenance, AI provides real-time insights and optimized analytics. These innovations reduce unexpected downtime and boost overall system efficiency.

By adopting AI at every stage of packaging, producers achieve measurable savings while enhancing operational precision. In today’s competitive market, the ability to deliver consistent, high-quality results faster gives businesses a clear edge.

Sweeney: AI-powered robotics are already streamlining American dairy processing and packaging systems, reducing the need for manual labor — something that’s good both for workers’ wellness and for plant efficiency. Predictive analytics are also minimizing material and energy waste, and monitoring for machinery maintenance needs. It’s exciting to see some dairy manufacturers and distributors also using AI for supply chain optimization and market trend analysis.

Cost and complexity sometimes hold dairy processors back from embracing new technology, including AI, but as our industry continues to navigate a national labor shortage and international marketplace volatility, it’s important to consider all opportunities to alleviate workforce demands and maximize profitability.

In addition to the topics already addressed, what key issues will impact the dairy industry in 2025?

Buholzer: Political unrest (armed conflicts), national and global pandemics (i.e. COVID, bird flu, etc.), supply chain consolidations, aging population and lack of succession planning.

Burrington: As consumers get further away from their food, we all need to fight beliefs and misconceptions about dairy. Transparency is important in today’s world, and we need to create opportunities to communicate how the dairy industry cares for their animals and the land, how we upcycle food for animals and humans, and how consuming dairy products does so many good things for your health. We all have a responsibility to help figure out how we are going to help feed the world but to also make sure that dairy products are part of diets in the future.

Maedke: Labor remains a problem, both for dairies and manufacturers. Demographics indicate that Baby Boomers will keep retiring. Their decades of experience and knowledge is valuable, resulting in a big loss when they leave, especially if a business isn’t adequately prepared. Who replaces them and at what cost?
Another concern: The incoming administration is preparing for mass deportations of undocumented workers. While it’s not clear how everything will shake out, and if farms will be left without the evening’s milking crew after an ICE raid, fewer workers means higher labor costs.

Roach: By 2025, the dairy industry will undergo a major packaging transformation driven by regulatory changes and innovation. Rising plastic costs, spurred by taxes and regulations such as California’s SB 54, will push producers toward more sustainable and cost-effective solutions. Paperboard and downgauged materials are already proving to be more economical, with paperboard in the United Kingdom costing up to 75% less than plastic. As adoption grows, the U.S. market will follow suit.

The industry is also moving toward lighter, more flexible materials. For instance, skin packs made from thinner films are replacing rigid plastics like clamshells and blister packs. These alternatives reduce the environmental impact without compromising performance. Thinner, high-performance films offer a solution to rising material costs while improving efficiency, reducing waste and extending equipment lifespan. These innovations are a response to the economic pressures of inflation, tariffs and increasing plastics costs.

As consumer demand for sustainability continues to rise, packaging systems must strike a balance between efficiency and environmental responsibility. To stay competitive, cheese and dairy producers must adopt innovative materials and maximize machine efficiency. Partnering with experts who understand both technical and operational needs will help you reduce costs and meet sustainability goals.

Smart, sustainable packaging is essential for thriving in an increasingly competitive and demanding market.

Sweeney: Dairy leaders will want to watch closely how the Trump administration delivers on its promise of “a historic deportation operation.” Surveys shows that more than 50% of workers on U.S. dairy farms are immigrants and that many lack legal visas. A broad deportation program could mean production declines, an exacerbated labor shortage, increased labor costs and — ultimately — rising consumer costs.

Our industry will also continue to be impacted by H5N1 dairy herd outbreaks — and associated headlines. While a milk testing program is now up and running, helping us understand the prevalence of infection — and hopefully, eliminating it from the nation’s herds — we should continue to work with federal agencies’ leaders to ensure their efforts are not causing undue alarm. Pasteurization works!

CMN

FDA begins domestic sampling of cow’s milk to test for bird flu

January 3, 2025

WASHINGTON — FDA has begun a domestic sampling assignment to collect and test aged raw cow’s milk cheese for highly pathogenic avian influenza (H5N1). The objectives of the assignment are to determine whether viable H5N1 virus is present in the cheese, and to take follow-up action(s) as needed to address contaminated product and protect consumers.

FDA’s sampling assignment complements research efforts that the agency is carrying out with its federal and state partners, as well as select research universities. Unlike the research efforts, the FDA’s sampling assignment is a regulatory activity.

The sample collection, announced in late December, is anticipated to be complete by the end of March 2025. The agency may extend the assignment duration to achieve the collection target, if needed.

FDA field staff will collect samples from warehouses and distribution hubs throughout the United States. To avoid overburdening distributors, the agency will collect no more than five samples at each collection site. The scope of this assignment does not include collection of samples at retail.

FDA will collect 300 samples of raw cow’s milk cheese that has been aged for at least 60 days, along with the label information. Each sample will consist of two packages of product, weighing at least 100 grams. The agency’s field staff will collect product that is labeled as aged raw cow’s milk cheese. In identifying the product, they also may use shipping documentation, such as a bill of lading, to aid in their determination, and may speak with the distributors.

FDA initially will test the samples using a PCR test. Samples that indicate the presence of H5N1 genetic material (either RNA or DNA) following a PCR test will be subject to viability testing. The viability test method is an egg inoculation test developed by USDA.

FDA will not require any action from a firm solely in response to a PCR positive result. Additional testing is needed to determine viability. If FDA detects viable virus in a sample, the agency will take follow-up action as warranted to protect consumers. Any samples that test positive for viable virus will be evaluated on a case-by-case basis. This means that depending on the findings, FDA will consider next steps, which may include actions needed to address contaminated product, such as a recall, follow-up inspection or other possible responses to protect public health. FDA also will notify the USDA and public health officials in the relevant state(s) of the positive test result.

FDA plans to publicize the assignment findings on FDA.gov after all testing and analysis are complete.

CMN

Duchess Dairy to expand for increased production, butter

January 3, 2025

RICHMOND, Va. — Virginia Gov. Glenn Youngkin last month announced that Duchess Dairy will invest approximately $895,000 to expand its dairy processing operations in Wythe County. The family-owned and operated dairy manufacturer plans to grow its operation by adding a production line of churned butter in addition to its current line of premium bottled milk.

“Growing small businesses in our rural communities is vital to the continued growth of the commonwealth’s largest private industry, agriculture. Congratulations to Duchess Dairy on this expansion and for investing in Southwest Virginia,” says Youngkin.

“We would like to thank Gov. Youngkin, the state of Virginia, Wythe County and the town of Rural Retreat for their assistance with this project, as well as our many loyal customers for the purchase of our products,” says James Huffard III, president of Duchess Dairy. “We take great pride in sourcing only fresh, high-quality milk from our dairy cattle to produce bottled milk and other dairy products. This expansion project will help us meet growing consumer demand by increasing operational efficiencies, increasing production capacity and adding a production line of fresh churned butter.”

The Virginia Department of Agriculture and Consumer Services (VDACS) worked with Wythe County and the town of Rural Retreat to secure the project for Virginia. Gov. Youngkin approved a $25,000 facility grant from the Agriculture and Forestry Industries Development Fund, which Wythe County will match with local funds.

“This project is important to Wythe County and our local dairy industry as we support our small businesses and Virginia’s agricultural economy,” says Brian Vaught, chairman of Wythe County’s board of supervisors. “The expansion of Duchess Dairy Products will benefit this entire sector by increasing the total production of dairy products and drawing more customers into supporting businesses in the area.”

CMN

Today's Cheese Spot Trading
Jan. 17, 2025

Barrels: $1.8900 (NC)
Blocks: $1.8900 (NC)

Click here for more market activity

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Suzanne Fanning, Wisconsin Cheese/Dairy Farmers of
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