USDA issues final decision on amendments to FMMOs

November 15, 2024

WASHINGTON — USDA’s Agricultural Marketing Service (AMS) this week issued a final decision on its website proposing to amend the uniform pricing formulas applicable in all 11 federal milk marketing orders (FMMOs). This rulemaking proceeding was requested by the dairy industry to evaluate changes to the uniform pricing formulas applicable to all 11 FMMOs. The proposed changes are based on substantial input and must be approved by eligible producers in each marketing order via a producer referendum before they take effect.

Consistent with the recommended decision published in the Federal Register July 15, 2024, the final decision puts forth a package of amendments to update formulas and factors based on the evidentiary record of the proceeding. It also makes certain limited changes from the recommended decision based on public comments and reevaluation of record evidence, as follows:

• Reduction in the delayed implementation of the revised skim milk composition factors from 12 months to six months;

• Inclusion of a $0.0015 marketing cost factor in all make allowances;

• A modification to the methodology used to determine the nonfat dry milk make allowance; and

• Limited changes to certain county-specific Class I differentials.

More specifically, the final decision recommends the following:

• Milk composition factors

These factors represent the true protein, other solids and nonfat solids, contained in skim milk. The factors will be updated as follows:

• Protein: Currently at 3.1%, to increase to 3.3%.

• Other solids: Currently at 5.9%, to increase to 6.0%.

• Nonfat solids: Currently at 9.0%, to increase to 9.3%.

• Surveyed commodity products

Remove 500-pound barrel Cheddar cheese prices from the Dairy Product Mandatory Reporting Program survey and rely solely on the 40-pound block Cheddar cheese price to determine the monthly average cheese price used in the formulas.

Alex Gambonini, senior manager, advisory services, at HighGround Dairy, Chicago, notes that this change could have potential impacts on market behavior.

“On the spot market front, the industry has been asking what this change will do to the barrel cheese spot market — will it continue? From what I understand from CME so far is that the CME spot barrel contract and marketplace would still be open, if the industry is asking for it. So I don’t think anything will happen to it in the short term, but that doesn’t mean there potentially won’t be changes down the line,” Gambonini says.

“I think now that the final decision is out, more organizations including CME will come out with more concrete details on what’s happening on the barrel cheese side,” she adds.

• Class III and Class IV formula factors

This category covers two factors. The first, manufacturing (make) allowances, represent the cost of converting raw milk into the four manufactured dairy products surveyed by USDA (cheese, butter, nonfat dry milk [NDM] and dry whey). The second, butterfat recovery, represents the amount of butterfat captured during cheesemaking.

Class III and Class IV formula factors will be updated as follows:

• Cheese make: Currently at $0.2003, to increase to $0.2519.

• Butter make: Currently at $0.1715, to increase to $0.2272.

• NDM make: Currently at $0.1678, to increase to $0.2393.

• Dry whey make: Currently at $0.1991, to increase to $0.2668.

• Butterfat recovery: Currently at 90%, to increase to 91%.

• Base Class I skim milk price (Class I mover)

The final decision contains a base Class I skim milk price that is the higher of the advanced Class III or Class IV skim milk prices for the month. Further, the decision includes a rolling monthly Class I extended-shelf-life (ESL) adjustment to provide for more orderly marketing of ESL products as they use a specific processing technology that is different from other Class I products.

• Class I differentials

The final decision updates the Class I differential values to reflect the increased cost of servicing the Class I market. The county-specific differential levels can be found in the final decision and on the hearing website.

The final decision soon will be published in the Federal Register.

Following the publication of the final decision and before any changes take effect, AMS will conduct producer referendums in each of the 11 FMMOs. Producers whose milk was pooled on an FMMO in January 2024 are eligible to participate in the referendum. They will have the opportunity to vote in favor of or opposition to the FMMOs as proposed to be amended in the final decision.

AMS will mail ballots to eligible independent producers and qualified cooperative associations. Ballots must be postmarked by Dec. 31, 2024, and returned by Jan. 15, 2025, to be counted. The referendum process is administered and overseen by AMS. Information about the referendum process has been posted to the hearing website at www.ams.usda.gov/rules-regulations/moa/dairy/hearings/national-fmmo-pricing-hearing.

Additionally, AMS will host three public webinars to further inform stakeholders of the proposed amendments and producer referendum process. These webinars will take place Nov. 19 and Nov. 25 at 11 a.m. ET, and Nov. 21 at 3 p.m. ET. A link to access the webinars will be provided in advance on the AMS hearing website. In addition, AMS supplementary educational documents have been posted on the hearing website.

The final decision 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 on July 1, 2024, followed by its publication in the Federal Register on July 15, 2024, which began a 60-day public comment period. The public comment period ended Sept. 13, with 128 comments received and reviewed by AMS.

Copies of the final decision, information on the producer referendum process, and the entire hearing record can be found on the hearing website or obtained from USDA/AMS/Dairy Program; STOP 0225 - Rm. 2530; 1400 Independence Ave. SW, Washington, DC 20250-0225. Procedural questions can be submitted to fmmohearing@usda.gov.

“This is exemplary performance by USDA staff, meeting deadlines in a complex, public hearing process to reform milk pricing,” says John Umhoefer, executive director of the Wisconsin Cheese Makers Association (WCMA). “This final decision makes clear that USDA has been meticulous and responsive in its efforts to prepare these technical changes to federal milk marketing orders.”

As requested by WCMA in its public comments on the proposed rule, USDA improved the make allowance for nonfat dry milk, raising it from $0.2268 to $0.2393 per pound by removing old 2016 California data that USDA initially proposed, WCMA notes. In addition, USDA added back the $0.0015 marketing allowance to all four dairy product make allowances, having removed them in the proposed rule. USDA also made changes to certain proposed county-level Class I milk price differentials and reduced the proposed delay in implementation of the revised skim milk composition factors from 12 months out to six months after implementation.

“While this decision is not a cure-all for dairy manufacturers and processors facing rising production costs, WCMA members acknowledge the significant effort made by USDA leadership and staff throughout this process,” Umhoefer says.

Gregg Doud, president and CEO of the National Milk Producers Federation (NMPF), notes USDA’s proposal largely resembles its preliminary decision, as was expected.

“We appreciate the department’s comprehensive approach and its incorporation of NMPF proposals throughout. Dairy farmers and the entire industry will benefit from a modernized approach, and it’s gratifying to see needed modernization being put before farmers for their final approval,” Doud says.

Edge Dairy Farmer Cooperative says it appreciates the diligent work of AMS staff to put forth the milk pricing reform.

“While not all of our proposals were included in the final decision, and we believe more could have been done to enhance the pricing formula, we are satisfied that the changes do not negatively impact our dairy farmer members,” says Tim Trotter, Edge CEO. “In aggregate, we believe the proposed reform would slightly decrease the minimum regulated price private milk buyers have to pay to pooled milk producers in the Upper Midwest order and would slightly increase the price to producers in the Central and Mideast orders. In all cases, we expect the impact on milk checks, after accounting for impact to over-order premiums, to be neutral or positive.”

Trotter notes that unlike most producers who are members of manufacturing cooperatives, Edge producers who were pooled in January 2024 will have the privilege to decide individually whether to vote to approve or disapprove proposed changes. In making that decision, they should be aware that the decision to disapprove the proposed reforms is a vote to completely eliminate their FMMO, he says.

“It is important for farmers to know that a vote to disapprove of this ruling is a vote to end the FMMO in that region,” Trotter says. “While we believe more could have been done to improve the milk pricing, we still believe it is still better to have the FMMO and the protections it brings for producers and as such encourage a ‘yes’ vote on the final rule.”

CMN

Republicans flip U.S. House as Trump names Cabinet nominees

November 15, 2024

WASHINGTON — Republicans have won control of the U.S. House of Representatives after the party took 218 seats in national elections, news reports say this week.

All 435 House seats were up for reelection, leaving the chamber’s balance of power up for grabs. Going into the election, Republicans had a narrow majority in the House with 220 seats over the Democrats, who held 212, and three seats being vacant prior to last Tuesday’s election. Republicans earlier gained control of the Senate from Democrats.

In taking the House, Republicans have solidified control of Congress and the White House, which in theory will create a smoother path for the party to advance its platform, news reports say. The Supreme Court also is dominated by conservative justices, including three that President-elect Donald Trump appointed during his first term as president.

House Speaker Mike Johnson, R-La., is expected to stay on as speaker next year as Republicans this week nominated him to retain the role; Rep. Steve Scalise, R-La., has been re-elected as House Majority Leader; and John Thune, R-S.D., has been selected to replace Sen. Mitch McConnell, R-Ky., as Senate Majority Leader, a position McConnell held for a record 18 years before announcing earlier this year that he would step down from the position this fall. McConnell still plans to serve out his Senate term, which ends in January 2027.

Trump named his senior campaign adviser Susie Wiles as his White House chief of staff, the first woman in history to hold the title. Longtime Trump adviser Stephen Miller has been selected as a deputy chief of staff, among others.

Trump this week also began announcing his nominees for various Cabinet positions, including Rep. Elise Stefanik, R-N.Y., to be ambassador to the United Nations; former Republican Rep. Lee Zeldin as the administrator of the U.S.

Environmental Protective Agency; conservative media personality Pete Hegseth to defense secretary; and Rep. Mike Waltz, R-Fla., as his national security adviser.

After meeting with President Joe Biden at the White House earlier this week to discuss the transition of power, Trump confirmed additional nominations including Sen. Marco Rubio, R-Fla., as secretary of state; South Dakota Gov. Kristi Noem as Homeland Security secretary; former Director of U.S. Immigration and Customs Enforcement Tom Homan as border czar; former Rep. John Ratcliffe as CIA director; Rep. Matt Gaetz, R-Fla., as attorney general; and former Rep. Tulsi Gabbard as director of national intelligence.

Gabbard previously was a Democratic U.S. Representative from Hawaii from 2013-2021. She later ran in the 2020 Democratic presidential primary, but switched to the Republican Party this year. Following his nomination as attorney general, Gaetz resigned from office “effective immediately,” setting a special election for the western Florida district in motion.

Trump also announced that Tesla CEO Elon Musk will helm what he calls the “Department of Government Efficiency” alongside former Republican presidential candidate Vivek Ramaswamy.

On Thursday, Trump announced the nomination of Robert F. Kennedy Jr., son of the late Sen. Robert F. Kennedy and the nephew of former President John Kennedy, for secretary of the Department of Health and Human Services.

All Cabinet positions must be confirmed by the U.S. Senate.

Meanwhile, as the transition to the newly elected administration begins, the National Farmers Union (NFU) has sent a letter to Trump urging focus on policy priorities essential to the health and vitality of rural America and the sustainability of the nation’s agricultural system.

“Family farmers and ranchers face challenges that demand urgent attention and continued support. Our next president has an opportunity to lead with policies that secure fair markets, strengthen the farm safety net and ensure a sustainable future for American agriculture,” says NFU President Rob Larew. “We want to work with the new administration to build on recent progress and help shape a future where family farms and their communities can thrive.”

In its letter, NFU highlights key priorities, including:

• Strengthening the farm safety net: With 2025 projected to be a challenging year for family farmers, NFU calls for robust support to address volatility in crop prices and input costs.

“The safety net established in the 2018 Farm Bill will not be sufficient to help farmers withstand rapidly declining crop prices, high interest rates and natural disasters,” Larew says.

• Ensuring competitive markets: NFU advocates for the enforcement of antitrust laws and greater transparency to combat the economic challenges posed by market concentration in the agricultural sector.

“For too long, unchecked mergers in the agriculture industry and throughout our nation’s economy have come at the expense of family farmers,” Larew says. “We need a food system that is competitive and resilient, not one that is brittle and dominated by only a few multinational corporations.”

• Trade: NFU urges the administration to be measured and cooperative when negotiating trade policy. Drastic measures could jeopardize the short-term and long-term financial health of family farmers, the organization says.

“Our members suffered significant losses due to the earlier trade dispute with China, and we lost valuable market share, particularly for soybeans, to competitors like Brazil,” Larew notes.

Additional priorities outlined in NFU’s letter include support for a simplified tax code that treats family farmers fairly, right-to-repair legislation, access to high-quality health care and a stable agricultural workforce, among others.

NFU says it remains committed to advocating for family farmers and ranchers and will continue to work closely with the incoming administration to address these pressing issues.

CMN

Bird flu detected in Canada, but unrelated to U.S. outbreak

November 15, 2024

OTTAWA, Ontario — The Public Health Agency of Canada (PHAC) on Wednesday confirmed a human case of avian influenza (also known as bird flu) caused by influenza A(H5N1) virus in Canada. This is Canada’s first domestically acquired human case of H5N1 avian influenza.

On Nov. 9, the Office of the Provincial Health Officer for British Columbia reported that a teenager in British Columbia was hospitalized and tested presumptive positive for H5 avian influenza. This week, the Public Health Agency of Canada’s National Microbiology Laboratory in Winnipeg confirmed that the individual has avian influenza H5N1 and the genomic sequencing result indicates that the virus is related to the avian influenza H5N1 viruses from the ongoing outbreak in poultry in British Columbia.

British Columbia officials continue to undertake a thorough public health investigation and have taken actions including contact tracing, testing and offering antiviral medication to contacts to prevent infection and to contain any potential virus spread. There have been no further cases identified at this time. The investigation has not yet determined how the individual became infected with avian influenza.

PHAC is working closely with the Canadian Food Inspection Agency, provincial, territorial and local public health and animal health authorities, industry stakeholders and international partners on this response.

Human infection with H5N1 is rare and usually occurs after close contact with infected birds, other infected animals or highly contaminated environments, PHAC says. While there is an ongoing outbreak of H5N1 in dairy cattle in the United States, no cases of avian influenza have been reported in dairy cattle in Canada, and there is no evidence of avian influenza in samples of milk in Canada. Furthermore, the genotype of H5N1 avian influenza in U.S. dairy cattle is not the same as the genotype confirmed in the domestically acquired human case in British Columbia.

Based on current evidence, PHAC says the risk of avian influenza infection for the general public remains low at this time. The risk of avian influenza infection is higher for those who have unprotected exposure to infected animals.

Meanwhile, the U.S. Centers for Disease Control and Prevention (CDC) says that key findings from a recent study show that symptoms often are not evident in those who have been infected by H5N1 and that these new findings highlight the need for employers and public health to strengthen prevention activities to better protect farm workers from the infection. Doing so is important to reduce the risk of H5N1 virus spread to exposed workers from sick animals, CDC says.

Data generated by CDC, state and local public health, and animal health partners during this animal outbreak have shown that there are two primary ways that workers in the United States have been infected with H5N1 virus: via exposure to infected poultry during culling activities, and through exposure to infected dairy cows, including while caring for sick cows, or when working in a milking parlor, the area on the farm where cows are milked.

Based on these data, CDC is updating its existing recommendations on actions to prevent exposures to H5N1 infected animals. These enhanced actions include:

• Decreasing human exposure through One Health control strategies and biosecurity to limit H5N1 virus infections in animals.

• Enhancing personal protective equipment (PPE) guidance to more clearly detail what PPE is appropriate for exposure risk levels (high, medium and low) in farming and poultry culling operations, alongside more robust worker training on proper use of PPE.

• Identifying exposed workers and providing appropriate testing as well as post-exposure prophylaxis (i.e., efforts to limit spread of disease), and treatment (e.g., antivirals).

• Offering testing to asymptomatic workers with a high-risk exposure who reported not wearing relevant PPE or who experienced a PPE breach or failure.

• Increasing outreach and education with farm workers, employers and advocacy groups to stress and ensure understanding of these messages and strategies.

CMN

Stakeholders discuss policy, leadership following election

November 8, 2024

WASHINGTON — Donald J. Trump was elected the 47th president of the United States this week, marking his return to the White House after serving as the 45th president. The U.S. Senate has flipped to a Republican majority, while the U.S. House remains too close to call as of press time.

Even with a Republican majority in both houses of Congress, margins will be thin enough that bipartisanship will be necessary to move forward on key issues, many of which have implications for the dairy industry, stakeholders say.

J. David Carlin, senior vice president of legislative affairs and economic policy at the International Dairy Foods Association (IDFA), notes that while some races still are being determined, for the most part, the committees that IDFA works closely with — namely congressional agriculture and appropriations committees — are not expected to see too much turnover.

In the Senate, Ag Committee Chair Debbie Stabenow, D-Mich., is retiring, and with a Republican majority, it’s likely that current Ranking Member John Boozman, R-Ark., will assume that position in the next Congress. Stabenow’s Senate seat was called on Wednesday for Democrat Elissa Slotkin, who defeated Republican challenger Mike Rogers and has expressed interest in working on the ag committee, Carlin says.

Sen. Tammy Baldwin, D-Wis., was elected to a third term, and dairy and ag stakeholders say they look forward to continuing to work with Baldwin, who has been a champion for many issues impacting the sector and sits on the Senate Appropriations Committee, notes Mike Stranz, vice president of advocacy for the National Farmers Union (NFU).

In the House, Ag Committee Chair Glenn Thompson, R-Pa., won re-election this week, while Ranking Member David Scott, D-Ga., also was re-elected.

In California, Rep. David Valadao, R-Calif., won his bid for another term. Paul Bleiberg, executive vice president, government relations, at the National Milk Producers Federation, says Valadao has been another key player for dairy, and stakeholders are keeping a close eye on other key races in California.

As the nation waits for the next Congress and administration to take shape, dairy and ag stakeholders also are watching closely to see if progress is made on key issues including federal funding and a new farm bill, either in the lame-duck session or in the next Congress.

“There has been some talk of getting the farm bill done in the lame duck, but I suspect it will not happen due to other things the Biden administration may want to tackle before the end of the year,” Carlin says, noting funding the federal government likely will take precedence as current funding is set to expire Dec. 20.

“It seems another farm bill extension is the most likely path forward, but we’ll see,” he says.

Stranz says NFU has heard reports from both Republicans and Democrats that they want to get the farm bill done during the lame duck for a couple of reasons.

“One — they want to get moving on legislative agendas for 2025 and would like the farm bill done just to clear the decks. Two — they hope to build on some of the movement that has happened rather than start over in a new Congress. And that’s on top of the financial need that so many farmers are experiencing right now given the relatively low commodity prices for crops and the (natural) disaster situations we’ve seen in the Southeast, and other parts of the country with drought. I think there’s an opportunity yet in the next several weeks to get it done,” Stranz says.

In the next Congress, dairy and ag stakeholders are eager to see what may develop in terms of tax reform, as well as tariffs and trade.

“I think one of the first things people are looking at is who is going to be appointed to run the agencies like USDA, FDA, HHS, etc., and the appointees will tell us more about what the priorities are likely to be for the incoming administration,” Carlin says. “We obviously know what was discussed during the campaign; however, sometimes those campaign issues aren’t always carried out. So we’ll be paying particular attention to who is at the top of those key departments, as well as looking at what the administration can do through executive orders or policy on their own.”

He adds that there has been talk of tariffs imposed on goods from China and other countries that could have an impact on the dairy industry in terms of retaliation opportunities, which would not be good.

“We don’t know exactly how that will play out yet — it certainly was a key component of Trump’s first administration, so we’ll see how that lands,” he says.

Stranz agrees, noting “one thing we know well through the first Trump administration is enthusiasm for tariffs and what that did in a lot of ag markets.

“The president-elect didn’t hesitate on doubling down on tariff promises,” Stranz says. “He’s talked about them before and has followed through on putting tariffs on imports, so we’ll see if that happens again. While dairy hasn’t been at the front of those discussions, it’s not beyond to think there could be retaliatory tariffs by our trading partners.”

He adds that while it’s important to hold trade partners accountable, to do so in a unilateral matter can be damaging as the industry saw in 2018 and 2019.

Above all, stakeholders want to make sure the transition process goes smoothly, as delays in appointments to key cabinets can hinder progress, Stranz says.

CMN

USDA reports U.S. dairy product exports rise 8% in September

November 8, 2024

WASHINGTON — U.S. exports of dairy products in September totaled 225,350 metric tons, up 8% from September 2023, according to the latest export numbers published this week by USDA’s Foreign Agricultural Service (FAS product group).

September dairy exports were valued at $707.0 million, up 18% from last September’s export value.

U.S. dairy product imports (FAS) in September totaled 72,823 metric tons, up 25% from September 2023, while September dairy imports were valued at $472.2 million, up 15% from a year earlier, USDA reports.

The U.S. Dairy Export Council (USDEC) noted in its Dairy Exporter Blog this week that this was the third straight monthly year-over-year gain and the best quarter for U.S. dairy exports since October-December 2022. USDEC adds this gain reflects strengthened global demand in most regions outside of China, and that U.S. suppliers saw widespread year-over-year gains across most product categories.

According to USDA’s FAS numbers, nonfat dry milk exports totaled 62,684 metric tons in September, up 16% from September 2023. USDEC reports that this increase was driven by sizable increases to Mexico and Southeast Asia, the two largest U.S. milk powder customers.

U.S. whey exports in September totaled 49,691 metric tons, up 15% from September 2023, according to USDA. USDEC reports that U.S. low-protein whey exports recorded their best month of the year in September, while high-protein whey (WPC80+) exports were slightly down.

September cheese and curd exports totaled 39,134 metric tons, according to USDA’s FAS numbers, up 7% from U.S. cheese exports a year earlier. USDEC reports that gains in cheese exports across Mexico, South and Central America and the Caribbean offset declines to East Asian markets.

CMN

September cheese production slightly up from one year ago

November 8, 2024

WASHINGTON — September U.S. cheese production, excluding cottage cheese, totaled 1.160 billion pounds, up less than half of 0.1% from September 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 on page 14.) September cheese production was down 3.1% from the 1.197 billion pounds produced in August, and up 0.1% on a daily average basis.

Italian-type cheese production in September totaled 486.6 million pounds, up 1.5% from September 2023. Production of Mozzarella, the largest component of Italian-type cheese production, totaled 389.6 million pounds in September,
up 2.7% from a year earlier.

American-type cheese production in September totaled 455.8 million pounds, down 3.7% from September 2023. Production of Cheddar, the largest component of American-type cheese, totaled 311.8 million pounds, down 2.6% from September 2023.

Wisconsin was the leading cheese-producing state with 283.2 million pounds produced in September, down 0.9% from September 2023. California followed with 200.5 million pounds produced in September, down 2.3% from a year earlier.

U.S. production of butter totaled 159.2 million pounds in September, up 11.3% from September 2023.

September butter production was down 0.4% from August’s 159.9 million pounds, but up 2.9% on a daily average basis. California was the leading butter-producing state with 49.6 million pounds produced in September, up 2.3% from September 2023.

CMN

PMMI will address state of packaging industry at Expo

November 1, 2024

CHICAGO — As packaging manufacturers and suppliers gear up for Pack Expo International, opening on Sunday in Chicago, PMMI, the Association for Packaging and Processing Technologies, will be delving into key findings from its recently released 2024 “PMMI State of the Industry U.S. Packaging Machinery Report.”

Bringing together 45,000 attendees and 2,600 exhibiting companies with packaging and processing solutions for 40-plus vertical markets, including cheese and dairy, Pack Expo International, set for Nov. 3-6 at Chicago’s McCormick Place, offers attendees the opportunity to experience equipment in motion, idea-sharing across vertical industries, problem-solving in real time, networking and learning at the intersection of innovation.

New and expanded education and show navigation resources will help attendees efficiently meet their sustainability objectives as they traverse more than 1.3 million square feet of floor space at the show.

“With consumers and regulators paying more attention to sustainability, brand owners must step up their efforts to set and meet goals to increase the sustainability of their operations,” says Laura Thompson, vice president of trade shows at PMMI. “Attendees at Pack Expo International will be able to walk away with the information they need to set and achieve sustainability goals.”

Show resources include the launch of Sustainability Central, the Sustainability Solutions Finder, the Pack Expo Green program, The Showcase of Packaging Innovations and free educational sessions.

Meanwhile, at a media breakfast on Monday, Pack Expo officials will provide a deep dive into the 2024 State of the Industry Report with Jorge Izquierdo, vice president, market development, PMMI.

The report notes that while lighter demand experienced in the back half of 2023 continued into 2024, stakeholders anticipate increased sales of new machinery as the year continues.

“There will likely be more requests for end-of-line automation as many companies continue to struggle with retaining labor for production lines,” the report says. “We expect growth to peak again in 2027, in line with the three-year peak-to-trough cycle that we have come to expect in this market.”

End-user sectors experienced a surge in investments in greenfield projects in 2021 and 2022. Despite rising interest rates and inflation in 2022, which heightened economic uncertainty in the United States and raised concerns about potential delays or cancellations of projects, the latter half of 2023 saw continued growth in new projects and facility expansions by major industry players, the report notes. In 2024, PMMI anticipates sustained growth across various sectors.

The food sector remains robust and ever-growing, driven by the constant demand for food products.

“Whether consumers are buying groceries or dining out, the need for food packaging remains steady,” PMMI says. “This sector’s resilience is due to its essential nature, and machinery equipment adapts to consumer preferences regardless of the economic state.”

In 2023, the food industry saw a boom in investments, with 11 announcements from major players regarding new facilities and upgrades to existing ones, totaling more than $838 million, the report adds.

The beverage industry is similarly resilient, with a steady demand for drinks of all kinds, the report notes. Recent trends include the diversification of drink sizes and the growing popularity of non-alcoholic drinks, such as mocktails and CBD-infused beverages.

A significant trend to watch is the shift in packaging materials, with glass and cans gaining popularity as the industry seeks more alternatives to plastic.

As far as packaging types, the report says conveying, feeding and handling equipment represents the highest value of packaging machinery shipped in the U.S. for 2023, with an estimated revenue of $2.3 billion. This sector has remained robust over the years and is projected to grow to $3.1 billion by 2028.

“This equipment is essential in nearly all production lines, making it one of the largest and most consistent sectors in the industry,” PMMI says.

Cartoning, multipacking and case-packing machinery form the second-largest category in terms of the value of U.S. machinery shipped in 2023, with an estimated revenue of $1.9 billion. Revenue from these machines is expected to experience significant growth, increasing by $677 million from 2023 to 2028, bringing the sector’s value to $2.7 billion, the report says. Key drivers of this growth include advancements in automation and the increasing use of paperboard in packaging.

Meanwhile, palletizing and load stabilization equipment have one of the highest growth rates for 2023, at 8%. This area is expected to maintain high single-digit growth throughout the forecast period, with an anticipated revenue of $1.3 billion by 2028. Factors contributing to this growth include the ongoing labor shortage, the rise of automation and the increasing use of warehouse automation in the e-commerce sector, PMMI says.

Inspecting and testing equipment have the second-highest growth rate when comparing 2023 to the expected shipment value in 2028. Currently estimated at $854 million, this sector is projected to grow to $1.1 billion by 2028. This equipment is crucial across many production lines, as it ensures that products meet quality standards, the report says, noting the increase in recalls, especially in the food and beverage industry, is driving companies to invest more in inspection machines like X-rays and thermal sensors.

For more information on the Pack Expo trade show, visit www.packexpointernational.com.

CMN

New USDA program to promote organic dairy products for youth

November 1, 2024

VERNON, Vt. — USDA’s Agricultural Marketing Service (AMS) this week announced the launch of the Organic Dairy Product
Promotion (ODPP) program, allocating $15 million to expand access to organic dairy products in educational institutions and youth programs. The program is designed to increase consumption of organic dairy products among children and young adults while creating new opportunities for small and mid-sized organic dairy producers.

“Expanding access to a variety of organic dairy products in schools and community programs promotes healthy consumption habits and strengthens local dairy markets,” says Jenny Lester Moffitt, USDA under secretary for marketing and regulatory programs.

Through the program, agreements have been made with four main organizations: the University of California, Fresno; University of Tennessee; Vermont Agency of Agriculture, Food & Markets; and the University of Wisconsin. Each of these organizations currently leads one of the four Dairy Business Innovation Initiatives and can implement the ODPP program. Key objectives include:

• Increasing domestic consumption of organic dairy products among children and young adults;

• Diversifying dairy products offered in learning institutions and at other youth- and young-adult focused program sites; and

• Building partnerships with and networks of businesses involved in organic dairy product production and the distribution of organic dairy products within the lead organization’s region.

Wisconsin Cheese Makers Association (WCMA), which runs the University of Wisconsin Dairy Business Innovation Alliance in partnership with the Center for Dairy Research at the University of Wisconsin, shared its support for the ODPP program.

“Dairy Business Innovation Alliance grants have launched and grown all kinds of dairy businesses, and we value the trust USDA has placed in us to boost organic dairy processing as well. We see this funding as an opportunity to increase young Americans’ access to delicious, nutritious dairy and strengthen rural communities,” says Rebekah Sweeney, senior director of programs and policy for WCMA.

Michael Dykes, president and CEO of the International Dairy Foods Association (IDFA), says IDFA also applauds USDA on this new effort to increase consumption of organic dairy products among children and young adults.

“Programs like the ODPP will work to improve access to nutritious dairy products for children and young Americans while building partnerships between dairy businesses and school districts,” Dykes says. “We encourage USDA to continue to focus on creative ways to increase consumption of nutritious dairy foods, including conventional organic, lactose-free and value-added dairy, especially among communities that historically under-consume nutritious dairy.”

CMN

Schuman Cheese has acquired Trugman-Nash, Old Croc brand

November 1, 2024

FAIRFIELD, N.J. — Schuman Cheese, a family-owned business with a rich heritage spanning more than 75 years, this week announced the acquisition of Trugman-Nash LLC from Allied Dairy Inc., welcoming a range of high-quality Cheddar offerings to its portfolio. The acquisition includes the ownership of Old Croc, the U.S. market leader for Australian Cheddar, and exclusive U.S. distribution rights for renowned Organic Herd British Cheddar brands produced by the Organic Milk Suppliers Cooperative.

“We’re excited to bring these outstanding Trugman-Nash brands into the Schuman Cheese family,” says Ian Schuman, import business manager of Schuman Cheese. “This acquisition strengthens our position in the specialty cheese market by adding to our best-in-class portfolio of imported cheeses from exceptional partners all over the world.”

Of the Cheddar brands entering the portfolio, the highly regarded Old Croc brand is particularly noteworthy, Schuman Cheese says. Known for its bold flavor and aged Australian Cheddar, Old Croc has become a staple in American households. The brand’s collection of offerings includes:

• Chunks: Sharp Cheddar, Smoked Sharp Cheddar, Extra Sharp Cheddar and Grand Reserve Cheddar.

• Bites, Slices and Spreads: Sharp Cheddar Cheese Snacks (Bites), Cheese Variety Pack (Slices) and an array of spreadable Cheddars including Sharp Cheddar, Bacon & Jalapeno and Port Wine.

Old Croc’s signature Cheddar is crafted from milk sourced exclusively from grass-fed cows, delivering a rich, natural flavor that cheese lovers will appreciate, Schuman Cheese says.

“Part of what made this acquisition so exciting was the remarkable growth of the Old Croc brand, thanks in large part to the excellent work of Allied Dairy Inc.,” says Allison Schuman, chief revenue officer of Schuman Cheese. “We look forward to building on their success and appreciate them entrusting us with the brand’s stewardship.”

The inclusion of this esteemed brand enhances Schuman Cheese’s already extensive portfolio of premium cheeses, offering customers an even wider array of vibrant, bold and high-quality cheese selections, she adds.

Ken Meyers, president and CEO of Trugman-Nash and founder of the Old Croc brand, says he is excited about the opportunities for growth for Trugman-Nash’s brands as a result of the acquisition.

“We’re excited about the next chapter and the lifespan of our brands knowing that Schuman Cheese’s distribution and efficiencies will allow them to grow to the next level,” he says.

Schuman Cheese also will become the exclusive U.S. distribution partner of Organic Herd, the producer of British Organic Dairy Co. Cheddar and Kingdom Organic Aged Cheddar. This partnership with organic dairy farmers who adhere to the very highest level of sustainable farming and animal welfare practices aligns with Schuman Cheese’s focus on meeting growing consumer demand for superior products, company officials say.

The acquisition allows Schuman Cheese to retain Trugman-Nash’s established retail presence, ensuring a seamless transition for customers and buyers.

CMN

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Blocks: $1.7250 (+1/4)

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