March 25, 2016
Subscribe to our weekly dairy or livestock email
newsletter at CapitalPress.com/newsletters
CapitalPress.com
9
Dairy
Chobani to expand Idaho operations USDA predicts lean
years ahead for dairy
By CAROL RYAN DUMAS
Capital Press
Greek yogurt maker Cho-
bani announced a major ex-
pansion to its Twin Falls fa-
cility Thursday, stating it will
expand production capabili-
ties to meet demand for new
and existing products.
The nearly $100 million
initiative includes purchasing
and converting three produc-
tion lines for “Flip” products
— the company’s fastest-
growing yogurt line — and
purchasing a new production
line and a new bulk produc-
tion line for foodservice op-
portunities to drive further
growth in schools, hotels,
airlines and restaurants.
The expansion also in-
cludes the purchase of new
equipment for new product
categories, such as dips and
yogurt drinks, and the launch
of products to new interna-
tional markets — including
Mexico and Puerto Rico this
summer.
An expansion is under-
way on the east side of the
existing facility, and the
company plans to break
ground on a global research
and development center and
a separate office building
later this year.
“Building the largest yo-
gurt manufacturing plant in
the world and expanding it
three years later is a really
proud moment for us and an
example of how right it was
to pick Idaho as our second
By CAROL RYAN DUMAS
Capital Press
Submitted photo
Chobani’s yogurt plant in Twin Falls, Idaho. On March 17 the company announced a $100 million
expansion to the facility.
home,” Chobani Chairman
and CEO Hamdi Ulukaya,
said in Thursday’s press re-
lease.
The company’s success
in Idaho and New York is an
example of the power and
strength of U.S. manufactur-
ing and a signal of the mo-
mentum of the food move-
ment Chobani started aimed
at “better food for more peo-
ple,” he said.
Chobani began opera-
tions in Twin Falls in De-
cember 2012 with a nearly 1
million- square-foot plant —
the largest yogurt manufac-
turing facility in the world
— at an initial investment of
more than $450 million.
The company’s pres-
ence in Idaho has served as
a catalyst for new jobs and
expanded food processing in
the region, according to state
and local officials.
“The kind of success that
Chobani is experiencing in
the Magic Valley is setting
a great example of region-
al collaboration between
employers and community
leaders throughout Idaho,”
Gov. Butch Otter said in a
statement about the expan-
sion.
“And it has economic-de-
velopment leaders all over
America standing up and
taking notice of what Idaho
has to offer,” he said.
In addition to expansion
plans in Twin Falls, the
company is also exploring
plans to expand its original
plant in New Berlin, N.Y.
The company also operates a
Greek yogurt plant in South
Victoria, Australia.
The company stated it
receives up to 4 million
pounds of fresh milk dai-
ly from local farms in New
York and Idaho and employs
more than 2,000 people
worldwide.
CME dairy prices see ups and downs; milk output up
By LEE MIELKE
For the Capital Press
C
ME cash prices saw
some ups and downs
in the St. Patrick’s Day
Week as traders anticipated
Friday afternoon’s February
Milk Production report.
Cheddar block cheese
closed Friday morning at $1.49
per pound, down a penny on
the week and a nickel below
a year ago. The barrels lost 5
cents, then jumped 8 cents Fri-
day and closed at $1.50, up 3
cents on the week and 2 cents
below a year ago. Only one car
of block was sold on the week
at the CME and four of barrel.
The blocks were unchanged
Monday as traders awaited
Tuesday afternoon’s February
Cold Storage report, and they
were unchanged Tuesday. The
barrels slipped three-quarters
Monday and lost 2 1/4 cents
Tuesday, dipping to $1.47.
Dairy Market News reports
that Midwest cheese makers
are seeing plenty of milk and
many are near full capaci-
ty. Some spot milk loads are
available at $1.50 to $3.00 un-
Dairy
Markets
Lee Mielke
der Class but “domestic retail
cheese demand continues to be
a good draw. Sales into food
service and mozzarella for piz-
za have also been respectable.”
Western cheese output re-
mains steady to higher as milk
intakes increase seasonally.
“Demand is still good from
food service and retail but club
stores and other large retailers
have slowed cheese orders
somewhat and are taking a
wait-and-see approach to the
market,” according to DMN.
Cash butter dipped to
$1.9250 per pound last Tues-
day, the lowest price since
July, 2015, then rebounded
some, and closed Friday at
$1.95, down 3 3/4-cents on the
week but still 27 cents above
a year ago, with eight cars ex-
changing hands on the week.
The Monday butter market
was unchanged but it inched
up three-quarters Tuesday, to
$1.9575, with 10 cars trading
hands and a bid at that price
going unilled.
Butter production is active
throughout the Central re-
gion, according to DMN. Spot
cream offers are readily avail-
able and interest is steady to
light, with inventories “steady
to building,” while Western
butter makers are seeing some
of the seasonal demand ebb.
Cash Grade A nonfat dry
milk closed the week at 73
cents per pound, down 4 cents
and 25 1/2-cents below a year
ago. Thirteen cars were traded
on the week.
The cash price inched up
a half-cent Monday and a
quarter-cent Tuesday, to 73
3/4-cents per pound.
Milk output up
U.S. milk production in
February in the top 23 states
totaled 15.8 billion pounds,
up 4.6 percent from February
2015, according to prelim-
inary data in USDA’s latest
Milk Production report. But,
when adjusting for the addi-
tional day due to leap year,
output was up just 1 percent,
though that was more than
many expected and the larg-
est percent gain since August
2015.
Output in the 50 states to-
taled 16.9 billion pounds, also
up 1 percent from 2015, fac-
toring in leap day. Revisions
lowered the original 23-state
January estimate by 13 mil-
lion pounds, to 16.6 billion,
up just 0.2 percent from 2015.
U.S.
dairymen
have
watched their proit mar-
gins fade along with the re-
cord-high milk prices of 2014,
and it doesn’t appear there’ll
be relief anytime soon.
USDA Economic Research
Service is projecting lean
times ahead and a downward
trend in milk prices until 2019
in its agricultural projections
for the next decade.
The nationwide January all-
milk price was down almost
$8 per hundredweight from an
average near $24 in 2014. At
$16.10, the January all-milk
price was almost $3 per hun-
dredweight above operating
cost but nearly $6 below total
cost of production.
The average all-milk price
is projected at $16.40 per hun-
dredweight in 2016, continu-
ing downward to $16.15 by
2018 as lower feed costs en-
courage increased production.
While U.S. cow numbers
are projected to decrease by
about 5,000 head in 2016 and
then hold steady through 2020,
output per cow is expected to
increase through the projection
period — rising 4,525 pounds
per cow by 2025.
Continued technological
and genetic developments as
well as eficiency gains result-
ing from consolidation in the
sector will support continued
increases in per-cow produc-
tion, ERS reported.
Increasing milk prices after
2018 — which are projected
to rise faster than the general
inlation rate, largely on the
strength of export gains — and
only moderate increases in
feed costs are expected to pro-
vide economic incentive for
continued expansion after the
lean years.
The agency also expects
domestic dairy demand to
grow at a strong pace, with
commercial use rising faster
Don Jenkins/Capital Press
Dairy cows stand in a barn
in northwestern Washington.
USDA Economic Research
Service is projecting lean times
ahead and a downward trend
in milk prices until 2019 in its
agricultural projections for the
next decade.
than the growth in U.S. popu-
lation over the next decade.
Greater consumption of
prepared foods and increased
eating away from home will
drive cheese demand, and but-
ter demand is expected to grow
— partly due to the phase-out
of trans fats. The per-capita
decline in domestic luid-milk
consumption, however, is ex-
pected to continue.
In addition to overall strong
domestic demand, the agency
is projecting better demand
abroad.
U.S. dairy exports are pro-
jected to recover and expand
over the next decade after de-
clining 3.6 billion pounds in
2015. That decline was mostly
due to lower demand from Chi-
na and greater competition from
the EU as a result of the Russian
trade ban, ERS reported.
Exports of products high
in nonfat milk solids, such as
nonfat dry milk, will lead the
recovery and expansion. Pro-
duction increases in other ma-
jor dairy exporting countries
are expected to lag global im-
port demand, and U.S. exports
are projected to reach record
levels, rising to 13.6 billion
pounds by 2025.
Educating the next
generation is very
important to
Capital Press. We
extend a sincere
“Thank You!” to
all the valued
sponsors who have
contributed to our
NIE program. It’s your continued support that will help
educate the next generation on the importance of agriculture.
Here’s what Ag teachers
think of our NIE Program.
“Being able to read the latest in production Ag makes
the content covered in this class so much more real.
Using Capital Press in the classroom also fits with the
new Common Core State Standards, prepping our
students for careers and college.”
- Josette Nebeker, Highland High School,
Craigmont, ID
“The wide variety of agriculture topics in
Capital Press are a valuable resource for
FFA extemporaneous and impromptu public
speakers preparing their speeches and answers.
They’re becoming literate in agriculture in an
urban setting which is made easier when using
this resource.”
- Jennifer Wilke, Bakersfield High Schooll
Bakersfield, CA
“Students use the Capital Press for research on Ag current events and
FFA speaking competitions. We use the articles as part of the
implementation of reading/writing strategies in Ag classes.”
- Ryan Maiden, Grandview High School
Grandview, WA
“By researching current events, students stay updated on what is
happening in the agriculture industry in our region, across the nation and
around the world! Thank you for promoting life-long learning!”
- Brook Vander Veen, Echo High School
Echo, OR
Help educate the next generation about the business
you
that feeds the world - AGRICULTURE! Thank
for your
generosity
and gift to
secure the
future of
Yes I want to sponsor papers in the classroom. Here is my check for __________. * agriculture.
Yes I can help Capital Press’ NEWSPAPER IN EDUCATION program by sponsoring an
ag classroom for $150. This provides 6 classroom copies.
NAME _____________________________ ADDRESS ____________________________
CITY ____________________________________ STATE ______ ZIP ______________
Make check out to Oregon Newspapers Foundation (ONF) and
note on the reference line of the check “Capital Press NIE fund.”
*Your donation may be tax deductible.
ROP-11-4-4/#13
P.O. Box 2048
Salem, OR 97308
Cultivating young minds • www.capitalpress.com • 1-800-882-6789