10 CapitalPress.com
August 26, 2016
Dairy/Livestock
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Cornell wins new dairy product competition U.S. dairy herd
By CAROL RYAN DUMAS
Capital Press
SUN VALLEY, Idaho — A
team of food science students
came 2,300 miles to beat out
the competition and claim the
grand prize in the 2016 Idaho
Milk Processors Association
new product development
competition.
The Cornell University
team captured the $10,000
grand prize with its innovative
Yojito drinkable yogurt named
Yo-Pop.
A spin on a typical drink-
able yogurt, Yo-Pop is not only
a nutritious and convenient
snack high in protein and pro-
biotics, it also comes with a
fun factor — delicious popping
boba.
Popping boba are small,
edible spheres made from fruit-
juice concentrates or lavor ex-
tracts. The boba remain sturdy
until popped in the mouth, re-
leasing a burst of lavor.
“Yo-Pop combines these
surprising treats of popping
boba into a creamy yogurt bev-
erage for a fun and multisen-
sory experience. The popping
boba add textural contrast and
an unexpected lavor element
to consumers’ experience,”
Carol Ryan Dumas/Capital Press
The student team from Cornell University took top honors at the
new dairy product contest sponsored by the Idaho Milk Processors
Association, winning $10,000. From left are Jiyu Zhu, irst year
graduate student from China; Linran Wang, senior undergraduate
from China; Belen Vila, irst year graduate student from Argentina;
and Michelle Duong, irst year doctoral student from Vietnam.
the team stated in its product
report.
The popping boba are
formed via a molecular gas-
tronomy technique called
spheriication that’s more com-
mon to upscale restaurants than
grocery aisles and transforms
fruit-juice concentrate or lavor
extracts into caviar-like pearls.
The Cornell team used mint
popping boba in lime-lavored
yogurt in competition, fash-
ioned after the popular mojito
lavors, but said combining
boba lavors and yogurt lavors
presents endless possibilities of
lavor proiles.
Containing 72 percent pro-
tein, one 8-ounce serving of
Yo-Pop provides 22 percent
of recommended daily protein
and 35 percent of recommend-
ed daily calcium. It has 170
calories, 11 grams of protein
2 grams of fat and 29 grams of
carbohydrates.
The drinkable yogurt is
made with acid whey — a
byproduct of Greek yogurt
production that usually goes
to waste and poses an environ-
mental risk — and whey pro-
tein, a sub-product of cheese
production, the students report-
ed.
“The growing innovation
these students bring to bear
each year is incredible, and it’s
very exciting for our industry,”
said Alan Reed, new product
competition chairman.
“When we launched the
competition nine years ago, the
teams were just suggesting ba-
sic, traditional dairy products
and a few new lavors. Now
we’re seeing true innovation
where the students are devel-
oping revolutionary new food
product concepts that contain
at least 51 percent dairy ingre-
dients,” he said.
Utah State University’s
team earned irst prize and
$5,000 with its PRO2GO
high-protein frozen dessert,
formulated with 63 percent
dairy ingredients.
A collaborative effort by the
University of Idaho and Wash-
ington State University took
second prize and $3,000 with
Custard Delights, a quick re-
frigerated crème brûlée custard
comprised of 75 percent dairy
ingredients, a third of which is
mascarpone — a mild cream
cheese.
Opportunity ahead for U.S. dairy exporters
By CAROL RYAN DUMAS
Capital Press
SUN VALLEY, Idaho —
U.S. dairy exporters are hav-
ing a tough time in today’s
global climate of oversupply,
economic weakening and soft
commodity prices, but a grow-
ing global middle class offers
opportunity ahead.
That was the message from
U.S. Dairy Export Council
President Tom Suber, who
talked about current market
dynamics and the structure of
the U.S. dairy industry during
the Idaho Milk Processors As-
sociation’s annual conference
last week.
In today’s market, the U.S.
can be at a disadvantage to
foreign competitors because
U.S. exporters have a narrow-
er product portfolio. While
the more specialized portfolio
of U.S. suppliers offers efi-
ciency of scale and a focus on
quality, it can also magnify
risk, he said.
Competitors can price
product based on internal re-
turns from a broad product
mix. The U.S. is generally
specialized in one primary
market, and that makes it hard
to compete, he said.
“It’s an issue of diversity
verses specialization,” he said.
A growing global middle
class — expected to reach 3.2
billion by 2020 and 4.9 billion
by 2030 — however, offers
opportunity for U.S. suppli-
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ers, particularly in cheese and
skim milk powder, he said.
Global cheese trade grew
5.3 percent per year from 2007
to 2013, stagnating in 2014-
2015 when Russia pulled out
of the market. At 2.3 million
tons in 2015, a growth rate of
just 3 percent annually to 2020
would demand an additional
360,000 tons, he said.
The U.S. and the EU are
in the best position to capture
that growth, as other suppliers
are too small to grow volumes
without large investments and
risk, he said.
In addition, the U.S al-
ready has strong market share
in some of the fastest-growing
import markets for cheese,
and the main growth sectors
— cheddar, pizza and cream
cheeses — it well with the
U.S. product portfolio, he
said.
The U.S. is also perform-
ing well in meeting buyers’ re-
quirements — such as low salt
and low moisture, producing
the mild varieties in demand
and meeting consumer pref-
erences. As the world’s largest
milk and cheese producer, it
also has the ability to increase
capacity, he said.
Skim milk powder also
presents a good opportunity
for the U.S. Global SMP trade
grew 8.9 percent per year from
2007 to 2015. At 2.2 million
tons in 2015, a growth rate of
just 3.6 percent annually to
2020 would demand an addi-
tional 420,000 tons, he said.
Again, the U.S. has strong
market share in some of the
fastest-growing SMP markets,
he said.
Global markets are going
to be more competitive in the
next decade than they were in
the last, and the U.S. has to de-
cide if it’s going to be opportu-
nistic or aggressive – take the
call or make the call, he said.
largest since 2008
By CAROL RYAN DUMAS
Capital Press
The number of cows at
U.S. dairies in July hit 9.332
million, the highest count
since the 9.334 million in De-
cember 2008.
Milk production, at near-
ly 17.2 billion pounds, was
up 1.4 percent year over year
on an additional 18,000 cows
producing an additional 23
pounds per cow, USDA Na-
tional Agricultural Statistics
Service reported Aug 19.
While milk prices are start-
ing to recover, they’ve been
below the cost of production
for roughly 17 months. But a
few other factors are driving
cow numbers, said analyst
Matt Gould of Dairy Market
Analyst.
Dairymen with a level of
milk production that provides
economies of scale and lower
cost of production have been
able to make money and rein-
vest. And larger dairy farmers
typically have hedging pro-
grams and probably locked in
higher prices, he said.
Record prices in 2014 also
led to planned expansion, and
it takes two years for a calf to
mature. There’s also been a
slow switch to sexed semen,
making more heifer calves
available, he said.
“There’s been substantial
growth for some time in the
Midwest,” he said.
The market has found its
bottom, prices are improving
and it’ll be a slow recovery,
but prices are returning to
proitable levels for just about
everybody, he said.
The July Class III price in
federal marketing orders was
$15.24 per hundredweight,
up $2.02 per hundredweight
from June and $3.48 from
May.
Producers in California
and New England, however,
have lost equity in the most
recent downturn, and it’ll take
some time before they’re back
ahead, Gould said.
Those in the Northeast
have been dealing with a lack
of processing capacity and
have been skimming and sell-
ing the fat off milk and dump-
ing the residual since spring.
July milk
production,
top 10 states
(Millions of pounds)
State
Calif.
Wis.
Idaho
N.Y.
Mich.
Penn.
Texas
Minn.
N.M.
Wash.
U.S.
July
Percent
2015 2016 change
3,405
2,509
1,228
1,219
888
917
855
810
659
560
17,665
Source: USDA NASS
3,377 -0.8
2,562 2.1
1,273 3.7
1,268
4
928
4.5
920
0.3
893
4.4
822
1.5
651 -1.2
560
—
17,915 1.4*
*23 major states
Capital Press graphic
It’s a way of salvaging what
they can and getting some
value from it, he said.
With a seasonal decrease
in milk production, dumping
should come to an end shortly,
but it doesn’t solve the long-
term problem.
On a national basis, Gould
expects milk production and
cow numbers to continue to
grow at a slow pace.
Domestic demand for dairy
products will continue to be
strong. Unemployment levels
are low, and wages should
strengthen. Retailers are buy-
ing more dairy products and
while foodservice sales are
likely to remain mediocre the
rest of the year, they should
return to growth in 2017, he
said.
On the international front,
Russia is still out of the mar-
ket but China has returned.
China is a big dairy importer
and its domestic production
was down 7 percent in the irst
half of the year, according to
U.S. Dairy Export Council.
That could provide opportuni-
ty for exports, Gould said.
EU milk production is
slowing and has fallen below
year-ago levels. Production
there — as well as in New
Zealand, Australia and Lat-
in America — will likely be
below year-ago levels for the
rest of the year, he said.
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Cash block Cheddar cheese
headed higher and butter saw
a second week of decline the
third week of August as trad-
ers absorbed Tuesday’s Global
Dairy Trade auction and await-
ed Friday afternoon’s July
Milk Production report.
The blocks closed Fri-
day morning at $1.8650 per
pound, up 8 1/2-cents on the
week, eliminating the inverted
spread, 12 1/2-cents above a
year ago, and the highest block
price since November 2014.
The barrels held all week at
$1.8650, 17 cents above a year
ago. Twenty-seven cars of
block were sold last week and
none of barrel.
Monday saw a differ-
ent scenario, with the blocks
inching a half-cent lower and
then dropped a penny and a
half Tuesday, to $1.8450, as
traders meditated on Monday
afternoon’s bearish July Cold
Storage report. The barrels
were unchanged Monday and
Tuesday.
Dairy Market News reports
that cheese production var-
ies across the Central region,
warning that as Class I demand
grows some manufacturers
will face dwindling milk sup-
plies. Spot loads of milk are
increasingly dificult to come
by but contacts feel overall de-
mand for cheese continues to
grow and seem optimistic that
it will continue.
Western cheese output re-
mains active and plenty of
milk is available. Cheesemak-
ers in parts of the region are
scrambling to get a few extra
loads due to seasonal declines
in production and the increased
draw of luid milk for school
startups. Cheese inventories
are long, but holding relatively
steady. Retail demand is sol-
id and manufacturers report
cheese is moving well.
Butter continued its de-
Dairy
Markets
Lee Mielke
cline, closing Friday at $2.19
per pound, down 6 cents on
the week and 18 cents below
a year ago when it skyrocket-
ed 30 1/2 cents and eventual-
ly peaked at $3.1350 on Sept.
25. Fifteen cars were sold last
week.
Monday saw a 6-cent melt-
down and Tuesday the spot
shed 2 1/4-cents, dipping to
$2.1075.
Churns are slowing for
some manufacturers in the
Central region as milk intakes
are falling. Growth in de-
mand is expected as Midwest
schools begin again. Demand
is steady from retail and food
service outlets.
Western butter output re-
mains steady. Manufacturers
generally are content with the
cream available. Inventories
are large but many contacts are
comfortable with stock levels
knowing that Fourth Quarter
butter needs can be met.
Cash Grade A nonfat dry
milk closed Friday at 85
3/4-cents per pound, up 2
1/2-cents on the week and 9
cents above a year ago. Nine
cars found new homes on the
week.
The powder gave up a half-
cent both Monday and Tues-
day, slipping to 84 3/4-cents
per pound.
July milk production in the
top 23 producing states hit 16.8
billion pounds, up 1.4 percent
from July 2015, according to
preliminary data. The 50-state
total, at 17.9 billion pounds,
was also up 1.4 percent. Revi-
sions raised the original June
estimate 9 million pounds, to
16.7 billion pounds, up 1.6
percent from a year ago.