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14 CapitalPress.com November 3, 2017 Dairy Subscribe to our weekly dairy or livestock email newsletter at CapitalPress.com/newsletters East Idaho dairy’s expansion into Boise area pays off Naerebout By SEAN ELLIS Capital Press BOISE — An Idaho Falls dairy’s venture 286 miles away into the Boise area has allowed it to stay in the milk bottling business. It is also helping other farmers sell their products directly to homes in Idaho’s largest urban center via the dairy’s home-delivery ser- vice. Reed’s Dairy produces cheese and ice cream and for years has sold milk directly to homes, as well as to a proces- sor, in Eastern Idaho. But low milk prices had owner Alan Reed thinking a few years ago about stepping out of the milk bottling busi- ness and just sticking with making cheese and ice cream, which it also sells at its two retail stores in the Idaho Falls area. Sean Ellis/Capital Press Reed’s Dairy owner Alan Reed with some of the products sold at the dairy’s retail store in Meridian, Idaho, on Oct. 13. The Eastern Idaho dairy’s recent expansion into the Boise area in southwest- ern Idaho is benefiting Reed’s as well as other producers whose products are being sold directly to customers through the dairy’s home-delivery service. At a time when Reed’s was close to making a decision on whether to stop bottling its own milk, a home-delivery service in southwestern Idaho called Boise Milk went up for sale. Reed’s purchased the de- livery service and now sells milk directly to homes in the Treasure Valley area in south- western Idaho. The Idaho Falls popula- tion is about 55,000, while about 650,000 people live in the Treasure Valley. The milk is bottled at Reed’s Idaho Falls dairy and shipped by truck to the Boise area, where it’s delivered to homes. “Coming over here and having another (outlet) for our milk is how we stayed in the milk business,” Reed said. “We’ve seen a really good increase in our custom- er base. The population here is huge compared to what we’re used to over in Idaho Falls.” The much larger custom- er base in the Boise area has also allowed the business to expand the food items it de- livers directly to customers. Reed’s now delivers meats, produce, honey, salsa, eggs and other foods in addition to its milk and dairy products. “Our customers keep giv- ing us this list of things they want, so we’re happy to bring it for them,” Reed said. “It’s kind of something that just happened.” Because Reed’s prefers to source locally, that devel- opment has benefited other producers like Ballard Fami- ly Dairy in Gooding, which makes specialty cheeses that Reed’s delivers. “It’s been a good deal for us,” said Ballard Dairy own- er Steve Ballard. “It gives us one more retail outlet to sell to.” Reed’s opened its first re- tail store in the Treasure Val- ley six weeks ago in Meridi- an, where it sells its cheeses, ice cream, milk and other dairy products. It’s the first of three to four retail stores the dairy plans to open in the region. “As soon as we unlocked the door, we had lines out the door,” Reed said. “It’s been doing really well.” Idaho Milk Products CEO sets retirement; replacement named By CAROL RYAN DUMAS Capital Press Idaho Milk Products announced a changing of the guard on Friday, stat- ing in a press release that Daragh Mac- cabee will take over the reins when Kent Giddings retires on Nov. 10. Along with a 27-year career, in- cluding 18 years at Glanbia plc, Mac- cabee brings a solid understanding of the dairy industry and its participants to his position at Idaho Milk Products, the company stated. He joined Idaho Milk Products on Oct. 23. Maccabee was previously the se- nior vice president of procurement and dairy economics at Glanbia Nutri- tionals as well as executive vice pres- ident and CFO of the company’s U.S. cheese and whey operations in Twin Falls, Idaho. Since 2014, he has served on the board of Southwest Cheese, a joint ven- ture between Glanbia and dairy farmers Idaho Milk Products Kent Giddings, right, outgoing general manager and CEO of Idaho Milk Products, shakes hands with incoming CEO Daragh Maccabee at the company’s facility in Jerome, Idaho. in New Mexico. Before joining Glanbia, he worked for Coca-Cola in establishing produc- tion facilities in Russia and the Gresh- am Hotel Group in Central Europe. “I look forward to joining Idaho Milk Products and helping the team to build on their successes and togeth- er achieve new levels of excellence,” Maccabee said in the press release. “I feel privileged to bring a wealth of experience from Glanbia to my new role and for the opportunity to grow Idaho Milk Products’ business and con- tinue to contribute to the dairy industry in Idaho,” he said. Giddings is retiring after a sev- en-year tenure as the company’s gener- al manager and CEO. “It has been an honor to help this wonderful company grow for the past seven years. I am happy to say that the company is prosperous, we have world-class customers, ownership, products and employees and the fu- ture is bright,” he said. Maccabee is a graduate of the Dublin Business School and Griffith College Dublin and a fellow of the Association of Chartered Certified Accountants. Idaho Milk Products is a private- ly held international milk processor, owned by two Idaho dairies and lo- cated in Jerome, Idaho. It supplies more than 40 million pounds of milk protein concentrate and isolate, milk permeate and cream annually to glob- al food and nutrition companies. tapped to lead IDA By CAROL RYAN DUMAS Capital Press Rick Naerebout has been named chief executive officer of the Idaho Dairymen’s As- sociation after having served other roles with IDA for the past 15 years. Most recently, he has served as the association’s manager of operations and has been in- strumental in establishing IDA Consult- ing to meet the Rick changing needs Naerebout of dairy pro- ducers throughout the state. “Rick has proven to be an industry leader during his 15-year tenure with IDA, and particularly throughout the changes IDA has undertaken these past few years,” Tony Vander Hulst, IDA president, said in a press release. “He has been integral in identifying, hiring and man- aging the highly qualified staff that have been added, and our board has full confidence in his leadership capabilities to meet the changing needs of our industry” he said. As CEO, Naerebout will be responsible for the day-to-day operations of IDA, IDEAL and IDA Consulting Services. Bob Naerebout, who has served as IDA executive di- rector, will continue in his re- lationship with IDA and will be the lead in government af- fairs. He will also continue to serve on the various national boards he has been appointed to, representing Idaho dairy- men in areas of stewardship, sustainability and immigration reform. Dairy Markets Lee Mielke Cheese prices up, butter down By LEE MIELKE For the Capital Press C ROP-42-7-1/HOU ash dairy product prices ended the week before Halloween mixed. The block cheddar closed Friday at $1.7450 per pound, up 7 1/2-cents on the week and 1 1/2-cents above a year ago. The barrels finished at $1.7050, up 6 1/2-cents on the week and 10 3/4-cents above a year ago. Only 16 cars of block trad- ed hands last week at the CME and 10 of barrel. The blocks inched up a half- cent Monday and gained a pen- ny on Halloween Day, hitting $1.76 per pound. The barrels were also up a half-cent Monday and ticked up 2 1/4-cents Tuesday, to $1.7325. Midwestern cheese contacts tell Dairy Market News that mozzarella and provolone sales are meeting or exceeding ex- pectations, while cheddar and traditional cheesemakers report that demand is steady to slight- ly higher. Milk is available for cheese processing, according to DMN, and some contacts report that cheesemakers are using nonfat dry milk to fortify cheese and “that is putting some pressure on milk prices. Cheese inventories remain long, but there seems to be some relief in sight, as strong demand and discounts on aging inventories have helped clear a bit of stor- age space.” “Western cheesemakers say year-to-date sales have been strong and holiday orders are providing support to current price levels,” according to DMN. There is solid demand for mozzarella due to the pizza season, the time when schools are in session and football games are played each week. Although inventories are a bit heavy, they do not appear to be a major concern for the in- dustry right now and demand is keeping pace with cheese production.
