Northeast Dairy Magazine | Q2 2021

DAIRY

trends

From Cow Comfort on the Farm to Comfort Foods on the Dinner Table

NDSA SCHOLARSHIP

2020 Recipient Earning Ph.D.

Second Quarter 2021

NUTRITION

Dieting? Don’t Forget the Dairy

HUMAN RESOURCES

Handling COVID Bonuses

MEMBER NEWS

Summer Association Events

nedairyfoods.org

contents Second Quarter 2021 • Volume 4, No. 2

FEATURES 21

DAIRY TRENDS: Connecting With Consumers, Showcasing Nutrition

FRONT DESK 03

06

Non-Dairy Cheese?

34

Cheddar Is Better

Health, Pandemic Changes Part of Conversation

25

Were you Raised in a Barn?

Pick up a Pint

BY DANIEL LAUSCH

TRENDS IN COW CARE:

This Isn’t Grandpa’s Dairy Farm Anymore

35 35

PRESIDENT’S MESSAGE, NDSA

26

By Leah Dorman, DVM

Good Night, Cow!

38 Innovations on the Horizon

BY OZZIE ORSILLO

30 Summer Dairy

ECONOMIC OUTLOOK

19

BACK TO THE FUTURE USDA Secretary Tom Vilsack

BY GARY LATTA

40 Following a Diet Trend?

Cheese Remains Strong

By Nathan Pistner and Alex Solla

Don’t Deny the Dairy

42

Flavors of the Year

MEMBER NEWS 44

MEMBER PROFILE Hudson Valley Fresh: A Long Journey to Protecting Family Farms

Tourney/Clambake

48

MEMBER PROFILE AFCO’s 165-Year-Old Business Expands

50 2020 Scholarship Winner Pursues Ph. D.

52 Member News and Industry Announcements

BY COURTNEY KLESS

47 Bruce W. Krupke Golf Editor’s Note on Photography Images used in this issue of Northeast Dairy were submitted by various sources and some were taken pre-pandemic, which is why many of the subjects are not wearing masks or other protective gear in the photos.

Been Shelved for Now

Gone to the Dogs

BY GARY LATTA

THREE JOIN NDFA BOARD

39 Packaging Concerns Have

31 Ben & Jerry’s Has 32

Find the Perfect Pairing to Reduce Food Waste

Celebrations Calendar

Exports, Trade Policies and Costs

18

Glass Might Be Good for You

37

29

BY ALEX WALSH

36 One More Wedge, One More

Their Cool

Dairy Always Brings Good to the Table

LEGISLATIVE REPORT

Stay in Your Lane:

Autonomous Trucks Are Becoming a Reality

29 Cows Need to Keep

EXECUTIVE VP MESSAGE

NDFA/NDSA at the Ready

13

34 Do Consumers Really Like

Current Dietary Guidelines

BY BILL ELLIOTT

09

With Cheese

22

PRESIDENT’S MESSAGE, NDFA

Trends to Watch

07

BY CAROLINE K. REFF

33 Everything’s Better

53

New Members

54 Leanne’s Kitchen: The BEST Macaroni and Cheese

BY COURTNEY KLESS NED Magazine | Second Quarter 2021 • 1

contents Second Quarter 2021 • Volume 4, No. 2

NORTHEAST DAIRY FOODS ASSOCIATION, INC. EXECUTIVE VICE PRESIDENT

James “Ozzie” Orsillo PRESIDENT

Daniel Lausch Lactalis American Group

EXECUTIVE ASSISTANT

Leanne Ziemba

VICE PRESIDENT

Kevin Ellis Cayuga Milk Ingredients

ASSOCIATE VICE PRESIDENT OF REGULATORY AFFAIRS

Alex Walsh

TREASURER

Randi Muzumdar HP Hood LLC

SECRETARY

Ryan Elliott Byrne Dairy

NORTHEAST DAIRY SUPPLIERS ASSOCIATION, INC. PRESIDENT

Bill Elliott Northeast Great Dane

VICE PRESIDENT

Melissa Fryer Alfa Laval

TREASURER

Ryan Osterhout KCO Resource Management

SECRETARY

Bruce Alling Double H Plastics, Inc.

NORTHEAST DAIRY MAGAZINE TEAM BEST PRACTICES 55 Advice on Financial Decisions During Unprecedented Times

By Anthony J. Stevens III

56 Keeping Up-to-Date on Insurance Trends

By Lisa Bolduc

58 2021 Northeast Dairy Annual Convention

59 Are You Counting COVID-19 Bonuses Towards Overtime?

60

By Paul Banuski

Advertisers’ Index

STAY CONNECTED

www.nedairyfoods.org www.neastda.org 427 S. MAIN ST, NORTH SYRACUSE, N.Y. 13212 315-452-MILK (6455)

2 • Northeast Dairy Foods Association, Inc.

EXECUTIVE EDITOR

SALES

PUBLISHER/DIRECTOR OF SALES

Anne DeSantis anned@nedairymedia.com

James “Ozzie” Orsillo oo@nedairyfoods.org Bill Brod billbrod@nedairymedia.com EDITOR

Caroline K. Reff creff@nedairymedia.com CONTENT DIRECTOR

Steve Guglielmo steveg@nedairymedia.com CREATIVE DIRECTOR

Robin Barnes COVER DESIGN

Karley Harmon

Tim Hudson thudson@nedairymedia.com

Hannah Gray hannahg@nedairymedia.com Lesli Mitchell lmitchell@nedairymedia.com CONTRIBUTORS

Paul Banuski, Lisa Bolduc, Leah Dorman, DVM; Courtney Kless, Gary Latta, Nathan Pistner, Alex Solla and Anthony J. Stevens III. PRODUCED BY

Northeast Dairy Media

Editorial correspondence should be directed to editor@nedairymedia.com.

Advertising correspondence and materials should be sent to billbrod@nedairymedia.com.

POSTMASTER: Send address changes to lz@nedairyfoods.org.

An official magazine of the Northeast Dairy Foods Association, Inc., a nonprofit organization. This publication carries authoritative notices and articles in regard to the activities and interests of the associations. In all other respects, neither the association nor the producer of the publication, Northeast Dairy Media, is responsible for the contents thereof or the opinions of the contributors.

The entire contents are © 2021 by Northeast Dairy Media. Nothing may be reproduced in whole or in part without written permission of the publisher. The association and Northeast Dairy Media reserve the right to print portions or all of any correspondence mailed to the editors without liability on its part and no such correspondence will be returned.

Visit Northeast Dairy Foods Association online at nedairyfoods.org for current information on association programs and services, or call the association at 315-452-MILK (6455). Questions and comments may also be sent to the association at oo@nedairyfoods.org.

Front Desk

Health Benefits, Changes Stemming from the Pandemic Must Remain Part of the Dairy Conversation

BY DANIEL LAUSCH President, Northeast Dairy Foods Association, Inc.

J

ust as the bank failures experienced by many during the Great Depression changed the saving and spending habits of millions of people for years to come, COVID-19 and the events of 2020 will certainly mean some permanent changes in consumer behaviors and purchasing patterns. We joke about keeping cash under our mattresses, but that was a reality for people who lost all of their savings when banks closed in the early 1930s, leaving them with only the money they had hidden away at home. Might the pandemic have the same impact on people who decide it may be wise to continue to keep some essential food and supplies on hand for a while? The COVID-19 pandemic has

been a worldwide disrupter in so many ways. While this may sound daunting, it has brought to the surface some changes and ideas that the dairy business can capitalize on.

One thing that I am certain will come out of the pandemic is a continued focus on health. And, “health” goes well beyond the absence of disease. COVID-19 is a generation-shaping event that will profoundly affect the way people will think about their overall health. People will look to food and drink to help them manage their health as we march through the current decade.

Consumers need to step away from the endless loop of fat replacing sugar or sugar replacing fat in highly processed diet foods and focus on the protein content in the products that they purchase.

And, where can that protein be found? In real, wholesome dairy products, of course. You’ll read several interesting pieces in this “Trends” issue of Northeast Dairy magazine that include a focus on building a stronger immune system, healthy lifestyle guidelines that include three servings of dairy per day and the importance of protein to keep a body strong.

NED Magazine | Second Quarter 2021 • 3

Front Desk Dairy foods as part of a healthy diet are not exactly a trend, but consumers taking greater notice of dairy’s benefits certainly is. It is up to us to capture this new attention while leveraging consumers’ personal motivation towards a healthier diet. This is something every level of our industry should keep in mind, as we develop new products and push them out to consumers.

Since the Federal Orders were established, dairy products have focused on butterfat percentage with little to no mention of protein or support of immune health. For too many years, butterfat percentage was the only way the USDA Federal Order milk pricing systems could calculate the value of a dairy farmer’s milk or determine which dairy farmers produced a higher valued milk for the marketplace, when

Consumers need to step away from the endless loop of fat replacing sugar or sugar replacing fat in highly processed diet foods and focus on the protein content in the products that they purchase.

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compared to their neighboring dairy farms in the same county. Currently, the three Federal Orders covering the area from North Carolina to Florida still do not consider the value of protein in determining the value of milk from the farm. This is just one issue that needs reform within the Federal Order system, and maybe – just maybe – the aftermath of the pandemic and new focus on health may help to further this change.

There are other changes and trends that impact dairy, too, particularly when it comes to consumer choices and habits.

The need for child and elder care, the necessity of remote learning for students and working from home for adults, and the reality of tough economic times have altered the way we live and see single households with two or three generations under the same roof. Multiple generations in the same home have certainly impacted the trend toward families sitting down to more home cooked meals (made extra delicious with dairy products); cheese, yogurt or other dairybased dips for a quick snack after school work is done, delicious ice cream for family movie nights — and certainly the classic glass of warm milk to make sure everyone in the household gets a good night sleep.

Whether the pandemic and hope for a return to normal creates trends or more permanent changes, the dairy industry needs to be part of an important conversation that ensures consumers continue to see the value, health benefits and pure deliciousness of fresh dairy products.

I hope you will read through the pages of this issue of Northeast Dairy magazine to see not only what changes in products and consumer habits came to be during the pandemic but also what direction these trends might take our industry as we begin to put COVID-19 behind us.

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Front Desk

Last Mile Delivery, Electric and Autonomous Vehicles Are Trends to Watch

BY BILL ELLIOTT President, Northeast Dairy Supplier Association, Inc.

A

s we complete our annual “trends” issue of Northeast Dairy magazine, I look forward to reading about all the new and interesting foods on the grocery store shelves, how the pandemic has impacted consumer choices and what’s happening where it all begins — at the farm level. But, because I work in trucking, an area that is vital to the dairy industry, I’ve been thinking about a number of trending issues on the horizon that may change the way dairy products or other essentials make their way from farm to table.

There’s been a lot of talk about “last mile delivery,” and this presents some pros and cons for the dairy industry. Since the pandemic began, the use of personal shoppers for groceries and the like has risen dramatically, and it will be interesting to see if, post-COVID, this becomes a regular convenience or whether people will be eager to get back into the stores to choose their own items from the dairy case. Statistics show that 25% of consumers are willing to pay for same day delivery.

For dairy, personal shopping brings up concerns over cold chain management, or the ability to keep dairy products at the optimal temperature from the time they leave the dairy case to when they are safely inside a consumer’s refrigerator or freezer.

Some of the responsibility for cold chain management will fall on transportation, as we’re already seeing an increased demand for smaller, specialized trucks that can hold frozen or refrigerated products from store to refrigerator. Whole Foods, Walmart and many other major grocery chains are investing in this type of technology, as they expect home delivery to continue. Optimal refrigeration technology and things like telematics are important in ensuring the integrity of each load that leaves a warehouse for a supermarket — and now also leaves a supermarket for your home. My company, Great Dane, is a leader in refrigerated trucks, so we are keeping a close eye on this changing and improving technology in order to meet the needs of our customers.

Another interesting concept is the electric vehicle and how it may transform the trucking industry. All of us know 6 • Northeast Dairy Foods Association, Inc.

that electric cars are already out there, and, as you might expect, Tesla is committed to perfecting the electric truck, as well (although it recently pushed out the delivery of its first electric commercial truck until later in 2021). This, of course, is a move away from reliance on gasoline and diesel, and something that has been in the works for years, but today the push is on. I believe this is the wave of the future, and trucks of all sizes will covert to electricity eventually. That’s a given, but I’m eager to see how these electric versions will make reliable refrigeration possible, as this is critical to so many industries, including dairy. It can be done, for sure, but the details of the technology are still in the works. In 2020, it was reported that 89,000 commercial electric vehicles were in operation. It is predicted there will be 805,000 on the road by 2027. This is certainly something to watch.

Autonomous vehicles are another trend to watch, as computer operated cars and trucks are becoming more and more feasible. They are already being tested in parts of the country, although most still have a driver on board just in case. Even the heavier class trucks are expected to be on the highways autonomously in the not-so-distant future, and there are more than eight major manufacturers around the world testing them out right now (see related article on page 35).

While I’m fascinated by this capability, I do have concerns that autonomous vehicles are not yet regulated. As with most technological advances, the law has not yet caught up with the technology, and this needs to be addressed sooner rather than later at the state and federal levels.

I’m excited to see what the future brings to both the transportation and the dairy industries. Will consumers continue to have groceries delivered to their doors after the pandemic is in the rear view mirror? And, if so, how will it be done in a way that maintains the integrity of the products? Will the majority of people buy into the idea of electric and/or autonomous personal vehicles, no less be willing to share the road with autonomous fleets of straight trucks and tractor trailers? Stay tuned.

Front Desk

From Curious Trends to Industry Shifts: Dairy Always Brings Something Good to the Table

BY OZZIE ORSILLO Executive Vice President, Northeast Dairy Foods Association, Inc.

W

hen I think of trends, I recall when my own little family went from one black and white TV in the basement to two color TVs upstairs, a huge shift in our home to say the least. Today, those two color TVs seem terribly out-of-date, as most homes now boast 65-inch SMART TVs with voice control, a camera, built in apps and more. My children’s generation doesn’t even subscribe to cable TV anymore, as they rely heavily on streaming services for their entertainment. Still, at its core, the television was something that many might have originally thought was a trend, until it became a societal shift — one that today allows us to gather around for Super Bowl parties and binge-watching Netflix. Let’s face it, how many of us would have made it through the past year without the benefits of a television?

Each year, we put together an annual trends issue of Northeast Dairy magazine, so that our members can stay up-to-date on what’s new, different

and innovative in the industry. Some of the things you’ll read about are, and will remain, fleeting, no doubt. But, others will make permanent impacts on the dairy industry, so much so that our various businesses need to prepare in order to remain competitive. In this issue, you’ll see that we’ve started right where it all begins — with the cow — and the intricate science and technology it takes to keep a cow comfortable and healthy, so that she produces nutritious, good quality milk. You’ll also notice that, whether we like it or not, many of the overarching trends in this issue were born of the pandemic. And, while we’re all eager to put this chapter of history behind us, I must admit that the pandemic has taught us a few things about how we live our lives and run our businesses — from how we eat, sleep and entertain ourselves to how we protect our employees, keep our supply chains open and continue to keep dairy at the forefront of consumers’ minds.

With so many new and interesting items competing out there in the dairy case, our processors of milk, ice cream,

cheese, yogurt and more have an even bigger challenge in making themselves stand out from the crowd. The stakes are even higher as Millennials and Gen Zers not only have so many dairy brand choices to consider but are also tempted by the dairy-alternative products that seem to be stealing some of the spotlight these days. From my point of view, real dairy products are the logical choice, as they are packed with natural nutrition, simply processed and provide the best price-to-nutrition value in the dairy case. Deep down, we all know this, but somewhere along the line, dairy has slipped as the nutritional giant it automatically was in the days of black and white TV sets. Fear not, as our world population continues to grow, the need for dairy products will increase right along with it. There will always be a strong desire for dairy. It is a wholesome and nutritious food essential with the added benefit of family-friendly prices. And, let’s face it, it also tastes really good!

Switching gears, some things that are far from trendy — but instead are classics

NED Magazine | Second Quarter 2021 • 7

Front Desk

— are back, as we plan the Bruce W. Krupke Memorial Golf Tournament and Clambake/Pig Roast at Rouges Roost Golf Club in Bridgeport, New York, and Spinning Wheel Event Center in North Syracuse, New York, this July 14. There is still time to register at www.nedairyfoods.org, so come and join us for our largest networking event of the year. It promises to be a day of fun, camaraderie and great food. Don’t miss it!

And, from Aug.18 through Aug. 20, join us at the annual Northeast Dairy Conference at the Chautauqua Harbor Hotel in Celeron, New York.

This is a combined event hosted by the Northeast Dairy Foods Association, the Pennsylvania Association of Milk Dealers, the New York State Cheese Manufacturers’ Association and the Northeast Dairy Suppliers Association.

This conference will give you a chance to hear about the great things happening in our industry from speakers and panelists across our membership and the industry, not to mention that it’s a 8 • Northeast Dairy Foods Association, Inc.

fantastic opportunity to finally network face-to-face again and leverage some great business opportunities. Oh, and did I mention that the site of this event is the perfect way to enjoy all that summer in Western New York State has to offer? You might even want to stay a few extra days before or after the conference. Registration is now open at www.nedairyfoods.org.

Finally, a few updates about the work happening at the Northeast Dairy Foods Association headquarters. As you will see in the articles in this issue by Alex Walsh and Gary Latta, we are constantly searching for and working on legislative and economic matters that impact our members and our industry.

We are reaching out directly to lawmakers across our region for introductions and offering our associations and our members as a resource to lawmakers.

We have and will continue to form coalitions with other regional and national associations on matters where a larger voice of scale is needed.

We continue to grow as an association and would like to officially welcome our newest member, Jefferson Bulk Milk Cooperative in Watertown, New York.

We look forward to meeting the farmer-owners of Jefferson Bulk Milk Co-op at our upcoming events. Another addition to our dairy community is Rob Fulton, who is the new executive director of the Pennsylvania Association of Milk Dealers. Rob is new in this role, but he has already been engaged in the planning process of our combined events. We welcome and look forward to working with Rob in our continuing relationship with PAMD. On behalf of the entire staff here at the Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association, we thank you for your continued support and membership.

Please reach out to me or any member of our staff if we can be of help to you and your business.

Legislative+RegulationsReport

Legislatures Are Back in Full Swing… and NDFA, NDSA Are at the Ready

BY ALEX WALSH

T

he world has been experiencing COVID-19 for over a year, and now we are finally starting to see progress on hospitalization rates, deaths and restrictions (again!). It has been a long battle, and the war is not over yet. Issues surrounding COVID-19 have been the No. 1 priority when it comes to the impact it has had on Northeast Dairy Foods and Northeast Dairy Supplier associations’ members. Since the start of the year, the most promising sign the country has seen to putting an end to the pandemic has been the release of vaccines. As the Food and Drug Administration has approved multiple vaccines and is dispensing them to the states, the struggle was ensuring agriculture, food processing and distribution employees were eligible to receive the vaccine.

At the end of 2020, the Center for Disease Control released its guidelines and recommendations as to which populations should be eligible for the vaccine and when. To the dairy industry’s relief, food processing and agriculture workers

were included early in the schedule and placed into Phase 1B. However, the challenges ensued when the supply of the vaccine just wasn’t available in the first few weeks of 2021. The Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association immediately ramped up advocacy efforts following the removal of agriculture and food processing employees from eligibility lists across our eight state region. Frustrations continued to mount as vaccine supplies began to increase, and states began adding other groups to the eligibility lists, seemingly forgetting about agriculture and food processing workers – those who have been on the frontlines during the entirety of the pandemic ensuring that our families and neighbors have food on the shelves at grocery stores. With each passing day that producers, dairy processors, manufacturers, distributors and suppliers were ineligible, we jeopardized not only employees’ health and safety but the efficiency and continuity of our food supply chain.

It just seemed unfathomable that the hardworking people whose job it is to make sure we all have food to eat and

drink had repeatedly been overlooked and dismissed when it came to being able to receive a vaccination. The Northeast Dairy Foods Association hammered this issue with state legislators, regulators and governors, highlighting the importance of vaccinating these workers and explaining the consequences that could come the longer we wait. Between direct outreach with elected officials, heavy engagement on social media and applying pressure through any and all traditional media outlets that would share this story, the issue began to gain momentum and support. Legislators and the public were willing to help the cause and carry out the message. As some governors continued to wield and hold on to executive powers, it was essentially up to them to decide when new groups were allowed to receive the vaccine. And, to complicate matters further, each state was beating its own drum as to who was eligible and when based on population, garnishing political points and other factors. Regardless, the Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association continued

NED Magazine | Second Quarter 2021 • 9

Legislative+RegulationsReport to be your voice on this matter and will vigorously fight until each one of your employees is eligible to be vaccinated.

In New Jersey, food and agriculture workers were able to sign up for the vaccine on March 29, and all adults in Connecticut were eligible in early April. As vaccine supply increased by mid-April, most states in the Northeast expanded eligibility to younger age groups, regardless of profession. New York, for example, which was one of the more challenging and baffling states to figure out the rationale behind who the next group to be eligible was, opened up vaccines to anyone over the age of 16 on April 6. Other states in the Northeast followed suit and expanded their eligibility lists to younger and younger groups around the same time. Northeast Dairy Foods and Suppliers associations fought valiantly throughout the spring to make states recognize employees in the food supply chain and the importance of getting them vaccinated.

ADDRESSING RAW MILK, POST-CONSUMER RECYCLING AND HAZARD PAY

While all of this was going on, state legislatures in the region continued discussing issues and passing bills. The Northeast Dairy Foods Association closely monitored and provided the association’s input and worked very closely with legislators on specific issues. The association’s staff had scores of meetings with elected officials, their staffs and other industry partners on COVID-related issues and other items of particular concern.

In 2020, New Jersey proposed the post-consumer recycling content bill, S2515. The state legislature did its due diligence on this bill, holding public hearings and comment periods on this proposal, and actually tabled the bill several times as the bill was being modified to work through concerns brought 10 • Northeast Dairy Foods Association, Inc.

forth by specific industries, including dairy. The bill moved out of the Senate Environmental Committee and is currently being viewed by the Consumer Protection Committee, where it is anticipated that further changes to the legislation could be made. A concern that was presented by the Northeast Dairy Foods Association on this bill is that it only provides the option for an annual waiver for Grade “A” dairy products.

However, NDFA has been working with legislators to expand on that, as well as extend the exemption period from five years to seven years.

Other bills that have been proposed in New Jersey include the establishment of a raw milk permit program (A585), which the Northeast Dairy Foods Association has opposed and is fighting against. The health risks and concerns associated with consuming raw milk are too great, and when a person becomes ill from drinking raw milk, it places a black eye on the dairy industry as a whole.

There are enough public relations and marketing issues to contend with in the dairy industry today. We cannot afford the continuation of these matters, and this must be contained. New Hampshire, New York, Vermont and Rhode Island also have pending bills related to the sale of raw milk. A third piece of legislation to be aware of is A3586, which establishes standards for food date labeling. This bill is being opposed by the Northeast Dairy Foods Association, as it conflicts with other state and the federal labeling laws. The association prefers a more national, standard framework on labeling issues, rather than a state-bystate patchwork.

Hazard pay for essential workers has been an ongoing debate the last several months in some states and could continue as we overcome COVID-19 and more states pick up on this concept.

Generally, these bills require employers

to pay additional compensation to employees who have worked during a state of emergency, such as a pandemic.

Not all of the proposals require food processing companies to pay hazard pay to their employees, but some do impact retail operations, which some Northeast Dairy Foods Association members have in addition to their processing or manufacturing operations. A number of companies are already doing this voluntarily and have been applauded for their ability to do so. However, the Northeast Dairy Foods Association has taken the position that the state should not require businesses to pay these employees more, as the pandemic specifically has taken its toll differently on some companies as compared to others, and not all employers are in a financial position to do that.

One recommendation is that, rather than requiring a company to provide hazard pay, the state should offer a tax relief to these essential employees.

States like Maine and Vermont are also going down the road of regulating polyfluoroalkyl substances in packaging.

The Northeast Dairy Foods Association is specifically watching these bills and related proposals in other states regarding the impact on dairy products and is engaging the possible impacts. Additionally, proposals to impose taxes on beverages containing certain amounts of sugar and limiting beverages items from children’s menus continue to arise in Connecticut, Rhode Island, New York and Vermont.

The Northeast Dairy Foods Association opposes these types of bills on the basis that it should be someone’s free will to choose his or her beverage — and these limitations also hurt milk sales.

SUPPORTING SUSTAINABILITY BUT NOT BY PASSING THE BUCK

A major piece of legislation Northeast Dairy Foods Association has been very active on this legislative session is

Legislative+RegulationsReport S1185-B, which establishes the extended producer responsibility act. Recycling is seen as and continues to grow into a big issue for local and state governments across the country, and New York is no different. As a result, there has been a growing push to put some of the burden back on those who produce these items.

This bill would impact not only companies that manufacture plastic yogurt cups, milk jugs, cardboard boxes, etc., but also companies that place their labels and copyright information on the packaging. “Producers” with sales in excess of $1 million in annual revenue would be prohibited from selling and distributing any covered materials in New York, unless they have an approved producer responsibility plan.

The alarming part of this legislation is that it was originally put in the state Senate’s one house budget without any public comment period, hearings or opportunities for stakeholders to provide input or testimony. That gave a real urgency to the Northeast Dairy Foods Association and other industry partners to present concerns in a matter of a few weeks. Just some of the concerns the Northeast Dairy Foods Association pointed out were that: • The meaning of a “producer” is not clearly defined • The capacity on the business end and the infrastructure at the state and municipal levels is not there • The fee structure is completely ambiguous • The costs of this program could not be passed on to the consumer.

First and foremost, the dairy industry is, and has been, pro-sustainability for many years and has proven its commitment when it comes to recycling. Dairy food processors and manufacturers, as well as companies that manufacture items such as milk cartons and yogurt containers, have been leaders on the

effort to not only provide foods that are healthy and nutritious but also take a proactive environmental approach when it comes to their operations. Members of Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association are working more efficiently, developing new technologies, reviewing sourcing options, reducing energy consumption, conserving water, and recycling or repurposing production waste in a variety of ways. One industry trend is large scale packaging companies moving away from petroleum-based plastics and into plant-based resins, and other materials, such as paperboard and containers with resin-based closures only. The industry has made significant strides in ensuring the recyclability of dairy products, such as the use of widely

recyclable high density polyethylene for milk cartons and plastic jugs, and will continue to look for ways to continue to do so.

Another major concern that the Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association have regarding this bill is the immediate increase in cost on products. As New York State and the rest of the country continue to navigate through the COVID-19 pandemic, now is not the time to increase cost on businesses. Even if the costs were allowed to be passed on to consumers, now is not the time to raise the price of food, especially when it comes to items that our neighbors rely on every single day, particularly dairy products.

CONTINUED ON NEXT PAGE ►

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Legislative+RegulationsReport Many dairy processors and manufacturers contract with container producers and suppliers that are outside of New York or outside of the United States, and this requirement would increase their costs in order to be compliant under this proposal. The increase of costs will place the dairy industry at a disadvantage and make processors and manufacturers less competitive in the market place.

Another financial burden this would have on dairy processors, manufacturers and suppliers is the fundamental shift of responsibility for the development and implementation of strategies to promote recycling, reuse and recovery of materials and products. Shifting the responsibility and costs from municipalities to private sector producers with no improvements or solutions to the problems within recycling markets and programs that have had obstacles for decades in New York does not solve the underlying problems of the state’s recycling infrastructure.

And, it will not improve or be rectified by shifting the responsibility. Additionally, this legislation points to producers to take on the responsibility and costs of recovery, reuse and recycling, as well as those with branding and copyright information on labels. The Northeast Dairy Foods Association and Northeast Dairy Suppliers Association have serious and significant concerns regarding the feasibility of this requirement.

Fortunately, through the efforts of the Northeast Dairy Foods Association and other organizations, legislators heard the roar from businesses that the impact this would have could be extremely problematic, and it was removed from the Senate’s one house budget. Thankfully, the language was never part of the Assembly’s one house budget, but the associations advocated to members of the Assembly to make sure it was not added in at the eleventh hour. The work on this legislation is not done. Word from 12 • Northeast Dairy Foods Association, Inc.

Albany is that this is still an item that will be pushed during this legislative session, and our associations will be vocal in explaining the concerns with this proposal.

NEW YORK STATE’S BUDGET PASSED

It’s also important to point out a couple of items about New York’s budget, which was passed a week late on April 7 (possibly due to the distraction of Gov. Andrew Cuomo’s ongoing harassment allegations, calls for impeachment, problems surrounding nursing home data and other ethical violation allegations against him). The budget passed by the legislature for fiscal year 2021-2022 is a massive $212 billion. To put that into context, it is only $10 billion less than California’s budget, a state that has twice the population of New York. Included in this year’s budget, the Nourish New York Initiative is now a permanent program that will benefit farms and people in need, as well as all of the players in between, to have access to healthy food across the state. The budget also included funding for vital research and development, education and outreach, agriculture development and other items specific to agriculture and food production. The state seemingly is showing a high level of commitment to the issue of food security, an issue that was highlighted early on in the pandemic, and these investments are claimed to bolster New York’s agriculture industry. In addition, the Empire State also finalized and passed legislation to legalize recreational marijuana.

Also included in the budget was $1 billion for a new Small Business Reopening and Relief Grant program, in addition to $39 million in tax credits and deductions to aid small businesses, including farms. The budget does come with some tax increases, including

annual taxes on corporations and the wealthy that will increase by approximately $4 billion next year.

T h e N o r t h e a s t D a i r y Fo o d s Association and Northeast Dairy Suppliers Association are also deep in the trenches on several priority issues in each of the states we represent. Heavy efforts have been spent on changes to the Producer Security Fund in New York, milk dealer license fees, raw milk sales, issues regarding Paid Family and Paid Sick Leave laws, and farm labor laws, just to name a few.

Legislatures tend to wrap up business by the end of June. And with most budgets passed, the remaining time will be focused on legislative issues. The Northeast Dairy Foods Association has been more active and involved than ever in terms of collaborating and building relationships with legislators and other elected officials to represents the interests and concerns of the dairy processing and manufacturing sector in the Northeast. The associations remains steadfast and committed to the priorities and challenges your business faces, working tirelessly on your behalf. Even when legislatures are not in session, our work continues. The Northeast Dairy Foods Association and the Northeast Dairy Supplier Association are engaging with elected officials, working to resolve matters, monitoring issues on the horizon and continuing to be your voice at the local, state and federal levels.

Alex Walsh is the associate vice president of regulatory affairs for the Northeast Dairy Foods Association.

EconomicOutlook

ECONOMIC OUTLOOK

Exports, Trade Policies and Costs May Determine the Success of 2021

BY GARY LATTA

A

s of mid-April, the Center for Disease Control and Prevention reported that 21% of the U.S. population has been fully vaccinated, while over 35% have received at least one dose.

There are demographic differences across the U.S., of course, and the percentage of the population within age groups varies.

Nearly 80% of people over the age of 65 have received at least one dose and nearly 60% have received two doses. Those ranging in age from 18 to 65 years that have now received at least one dose is 45%. In these 18 to 65 age groups, 28% have been fully vaccinated. On average, the U.S. is administering 3.1 million vaccine doses per day.

The importance of this vaccination progress to the world economy and agriculture is that new hope for a return to normal seems on the horizon. The speed of recovery will be dependent upon the success of these vaccination programs in accelerating the reopening of businesses, schools, institutions, sports and

entertainment events. The dairy industry is closely monitoring the 2021 pandemic recovery and is positioning itself to optimize available opportunities both domestically and abroad. No one knows for sure what the post-pandemic world will look like and how things may have changed permanently.

DAIRY EXPORTS STRONG IN 2020, TRADE POLICIES MAY IMPACT FUTURE

While many U.S. restaurants and food service institutions are reopening, dairy sales to these outlets are still far below pre-pandemic levels. Retail sales have been brisk but have not made up the difference overall for losses in foodservice volume. Fortunately, U.S. dairy exports were very good in 2020.

According to the U.S. Dairy Export Council, export volume on a milk solids equivalent basis hit a record high of 2.1 million metric tons in 2020. The value of these dairy exports was $6.6 billion, the highest since 2014, and was 16% of 2020 U.S. milk production. According to Krysta Harden, president and CEO

NED Magazine | Second Quarter 2021 • 13

2016 2017 2018 2019 2020

........................... ........................... ........................... ........................... ...........................

9,334 9,406 9,398 9,337 9,388

EconomicOutlook 1 2

22,761 22,914 23,150 23,395 23,777

Average number during year, excluding heifers not yet fresh.

Excludes milk sucked by calves.

212,451 215,527 217,568 218,441 223,220

Milk Production – United States: 2011-2020 PER POUND

Million pounds

Central Dry Whey Monthly Average Mostly Prices

$0.65

225,000

14% Increase over the past 10-year period

$0.60

220,000 $0.55 $0.50 215,000 $0.45

210,000 $0.40

205,000 $0.35 $0.30

200,000 $0.25

195,000 $0.20

Jan

2011 Feb 2012 Mar2013

2014

Apr

4/1/2021 - GRAPH/SOURCE USDA, AMS, DMN USDA/AMS/Dairy Market News, Madison, Wisconsin, (608) 422-8587 Dairy Market News website http://www.ams.usda.gov/market-news/dairy DMN MARS (My Market News) https://mymarketnews.ams.usda.gov/

of the U.S. Dairy Export Council, one of every six tankers of U.S. milk is exported to other countries.

Trade policy plays an important role in the volume of dairy exports that we can expect and prepare for. The new U.S. Trade Representative Katherine Tai, members of Congress, dairy leaders and USDEC’s Harden are all working to see that dairy gets a fair shake with respect to exports. A lot of this starts with countries honoring trade agreements like the United States-Mexico-Canada Agreement. Canada is still manipulating its Tariff Rate Quotas. which are the quantities of dairy products that can be imported at lower duty levels.

Milkdenies Production 2021) This not only U.S.(February dairy entrance to Canada but also USDA, National Agricultural Statistics Service denies Canadian companies and consumers expanded options to buy high-quality products.

Mexico, the biggest importer of U.S. dairy products, is also of concern. USDEC reports that Mexico is advancing new compliance processes for cheese standards that would be burdensome for U.S. manufacturers. In late March, 27 leading agricultural organizations sent a letter to U.S Trade Representative Tai and USDA Secretary Tom Vilsack expressing trade concerns with Mexico that ranged from produce, dairy, meat, biotechnology and labeling.

The Mexican economy has been hit hard by the pandemic, and we will have to wait and see how that impacts its U.S. cheese imports this year.

U.S. dairy exports to Southeast Asia have been especially brisk over the past two years, even during the pandemic. The 14 • Northeast Dairy Foods Association, Inc.

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USDEC opened a hub in Singapore in October of 2020 that has become a center for U.S. dairy exports in Southeast Asia.

This part of the world is a rapidly growing region that includes Vietnam, Indonesia, the Philippines, Thailand, Malaysia and Singapore. We could also include China in this group.

According to USDEC’s Harden, “The industry made a real commitment by putting an office in Singapore. It sent a signal that we are in it for the long haul and serious about our partnership in Southeast Asia with U.S. dairy exports.” USDEC funding comes from U.S. dairy farmers through the national Dairy Checkoff Program.

Presently, opportunities for dairy exports are looking good.

U.S. dairy products are price-competitive in the international marketplace. According to some experts in academia, they could be even more competitive if we removed the yellow color from our cheese and offered more 82% butterfat butter, rather than the U.S. standard of 80% butterfat butter. To make this change would require costly retooling and is not feasible for the short run. Reports indicate that some U.S. butter is now being exported at the 82% butterfat international standard. Butter and whey are two U.S. dairy products that are price competitive in the global marketplace now. This can be observed in their recent sales volume trends and upward trajectory in price. Much of the whey exported from the U.S. is destined for China to be used as a feed ingredient, as that country rebuilds its hog industry after a prolonged bout with African swine flu.

7

9,150 9,100

2011

2012

2013

2014

2015

2016

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2019

2020

EconomicOutlook

Production per Cow – United States: 2011-2020 Central Dry Whey Monthly Average Mostly Prices

PER POUND

Pounds $0.65

24,000 $0.60

11% Increase over the past 10-year period

$0.55 23,500 $0.50 23,000 $0.45

22,500 $0.40

22,000 $0.35

21,500 $0.30 $0.25 21,000 $0.20

2011 Jan

2012 Feb

2013 Mar

2014 Apr

2015 May

4/1/2021 - GRAPH/SOURCE USDA, AMS, DMN USDA/AMS/Dairy Market News, Madison, Wisconsin, (608) 422-8587 Dairy Market News website http://www.ams.usda.gov/market-news/dairy DMN MARS (My Market News) https://mymarketnews.ams.usda.gov/

INTERNATIONAL SALES KEY TO ABUNDANCE OF U.S. MILK SUPPLY

This emphasis on exports is because international sales will play a key role in 2021 as the U.S. dairy industry seeks homes for what could be an abundance of milk supply beyond domestic needs. So far in 2021, domestic sales have been quite Milk Production (February strong with growth seen in2021) yogurt, butter, American cheese and USDA, National Agricultural Statistics Service milk products in general. However, robust milk production growth and sizable stocks in storage are two key components keeping prices in check now. Year 2020 annual milk production was reported up 2.2% from 2019. The growth in 2020 came from an average 382-pound increase in output per cow and an increase of 9.39 million in the average number of milk cows.

The USDA noted that from 2011 annual milk production has increased 13.7%, the average milk production per cow has increased 11.5% and the average number of milk cows has increased 2.1%.

These growth trends in U.S. production have continued in recent months. December milk production was up 3.2%.

January was up 1.8%, and March was up 2.3% after adjusting for the leap year. Milk cows were added in all three months over the same three months of prior years. Industry observers feel that to sustain such growth, export markets must be outlets for surplus product beyond domestic needs. With sustained productivity highlighted in the paragraph above, the U.S. dairy industry should be destined to be the preferred global supplier.

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FEED AND FUEL COSTS COULD CAUSE SLOWDOWN

A factor that could slow production growth in 2021 is rising feed costs. The USDA recently released reports that indicate planting of grains used in dairy feed rations are less than expected. Also, the USDA grain stocks reports are indicating shrinking supplies that could also mean increased input costs for animal feed at farms. Higher feed input costs could slow the9 rate of milk production growth enough to put upward pressure on product prices. Some observers feel China’s large purchases of U.S. grain have drawn stocks down and have contributed to the rising cost of feed. The Grain Stocks report released March 31 revealed that from March of last year, corn stocks are down 3%, soybean stocks down 31% and all wheat stocks down 7%. The other 2021 rising input cost to watch is fuel and energy. These two components impact the cost of everything from farm production, processing, packaging, marketing and delivery. U.S. exports will only be as robust as they are able to remain price competitive in the international marketplace.

FOOD BOX PROGRAM HAS DELIVERED MORE THAN $1 BILLION IN DAIRY PRODUCTS

The Food Box Program was scheduled to end April 30 but will continue through to the end of May when it will be replaced by the Dairy Donation Program. USDA will administer the Dairy Donation Program (DDP) as was established in the Consolidated Appropriations Act, 2021. The new program

NED Magazine | Second Quarter 2021 • 15

EconomicOutlook Central Dry Whey Monthly Average Mostly Prices

PER POUND

$0.65 $0.60 $0.55 $0.50 $0.45 $0.40 $0.35 $0.30 $0.25 $0.20

Jan

Feb

Mar

Apr

May

Jun

4/1/2021 - GRAPH/SOURCE USDA, AMS, DMN USDA/AMS/Dairy Market News, Madison, Wisconsin, (608) 422-8587 Dairy Market News website http://www.ams.usda.gov/market-news/dairy DMN MARS (My Market News) https://mymarketnews.ams.usda.gov/

is designed to pick up where food boxes left off in seeing that dairy products get distributed to nonprofit organizations.

The USDA Food Box website keeps current on the number of boxes delivered to date. As of early April, contractors have delivered over 160.8 million food boxes of fresh produce, milk, various dairy items and cooked meats to disadvantaged Americans across the country. While difficult to get an exact figure, it is believed the Food Box program so far has delivered well over $1 billion worth of dairy products that include fluid milk, various cheeses, yogurt, sour cream and more.

USDA FARMERS TO FAMILIES FOOD BOX

• 35.7 million food boxes invoiced in round one (May 15-June 30, 2020) • 50.8 million food boxes invoiced in round two (July 1-August 31, 2020) • 15.2 million food boxes invoiced in round two extensions (September 1 - September 18, 2020) • 18.8 million food boxes invoiced in BOA Contracts (September 22 - October 31, 2020) • 12.4 million food boxes invoiced in round four (November 1 - December 31, 2020) • 22.2 million food boxes invoiced in round five (January 19 - April 30, 2021) On March 22, the USDA held an open 12-hour call with interested participants to seek input regarding the fate of the Food Box program once it expires at the end of April. Suggestions were numerous and varied across the board. Like many government 16 • Northeast Dairy Foods Association, Inc.

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programs, it is sometimes more difficult letting them go than it was to create them. Most observers believe if the Food Box Program expires, it will be replaced by some other form of food assistance program. For example, the USDA Agricultural Marketing Service recently awarded contracts for over 12.3 million pounds of cheddar cheese to be used for distribution in domestic feeding programs. The cheese is to be in 1 to 2-pound chunks and 2 to 6-pound packages of shreds and is scheduled for delivery between May 1 and Sept. 30, 2021.

DO FEDERAL MILK MARKETING ORDERS NEED A CLOSER LOOK?

There has been a fair amount of talk in the news recently offering criticisms and suggestions for improvement to Federal Milk Marketing Orders. Among the items mentioned that might need examination are make allowances, depooling, negative producer price differentials and the Class I price formula. Some leaders feel that a collective overall examination of the program is needed rather than a few select teaks here and there. Such an endeavor would require a major national hearing and considerable time to conclude.

Senate Ag Committee Chairwoman Debbie Stabenow (D-MI) reported that addressing these dairy reform issues is likely a year off on her docket. Meanwhile, on March 16, Sen. Kirsten Gillibrand (D-NY) announced she will chair the Senate Agriculture Subcommittee on Livestock, Dairy, Poultry, Local Food Systems, Food Safety and Security. In her press release, Gillibrand again stated she will push for transparency and

EconomicOutlook U.S. $ PER POUND

CME Weekly Average Cash Grade AA Butter Prices

2.80 2.70 2.60 2.50 2.40 2.30 2.20 2.10 2.00 1.90 1.80 1.70 1.60 1.50 1.40 1.30 1.20 1.10

04/16/2021 GRAPH USDA, DMN; SOURCE CME GROUP USDA/AMS/Dairy Market News, Madison, Wisconsin, (608)422-8587 Dairy Market News website: http://www.ams.usda.gov/market-news/dairy

2017

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reform in dairy pricing systems to ensure farmers are receiving a fair price for their milk.

was announced a few weeks ago at $16.15 per cwt, up $0.4000 cents from February and down $0.1000 cents from a year ago.

BUTTER IS STEADILY CLIMBING

REPORT FORECASTS DAIRY-RELATED FACTORS FOR REST OF 2021

Speaking of prices, Chicago Mercantile Exchange butter has been climbing steadily at a good pace over the past few months and is near $1.9000 per pound as of this writing.

Demand for butter and other commodities is strengthening as restaurants reopen and exports grow. U.S. prices remain below world prices and that makes them competitive. CME cheese prices are rising and are now at $1.8300 per pound for blocks. Nonfat dry milk is at the highest price it has been in four years, while dry whey prices have been on an upward trajectory since July of 2020. Both nonfat dry milk and whey are being fueled by strengthening exports. In the case of whey, it is demand from China that has propelled whey to $0.6500 per pound, the highest in four years. It is assumed that each penny of change in the whey price per pound translates to a Class III price change of $0.0600 per hundredweight. At this time, grade A nonfat dry milk is trading near $1.2100 per pound and poised to rise further.

Class III futures prices are trending higher. April Class III futures are at $17.62 per cwt, May at $19.42, June at $19.61, and July at $19.42. Class IV futures prices are trending over $17.00 per cwt for the remainder of 2021. A few respected dairy economists in academia have forecasted the announced Class III to be near $18 for May. The March Class III price

The April edition of the World Agricultural Supply and Demand Estimates was released last week and offers an early look at how USDA has forecasted dairy-related factors for the remainder of the year. Milk production for 2021 was raised from last month primarily due to increased cow numbers. Fatbasis exports were raised on higher expected shipments of cheese. On a skim-solids basis, the export forecast was raised on strong expected growth in shipments of skim milk powders and whey. Imports were reduced. As can be expected, product price forecasts were raised on improving demand, both domestically and in international markets. Prices of cheese, butter, nonfat dry milk and whey were all raised, boosting both Class III and Class IV prices. Class III from $16.75 to $17.10 per cwt and Class IV from $14.45 to $15.15 per cwt. The 2021 all milk price forecast is raised from $17.75 to $18.40 per cwt.

Gary Latta is a dairy product specialist consultant for the Northeast Dairy Foods Association, Inc. He has more than 30 years of experience in providing economic analysis, statistics and information to the dairy processing industry.

NED Magazine | Second Quarter 2021 • 17

AssociationNews

Three Join NDFA Board

W

elcome to three new members of the board o f t h e N o r t h e a s t D a i r y Fo o d s Association, Inc. Aaron Jonas is the director of business development for Mountainside Farms, Inc./Worcester Creameries, Inc. Randi Muzumdar is senior director of milk procurement and energy at HP Hood LLC. She has also taken on the role of treasurer for the NDFA board. And, Mark Toppel is the vice president of operations at Readington Farms, Inc. “We appreciate the commitment of Aaron, Randi and Mark to the Northeast Dairy Foods Association,” said Daniel Lausch, board president. “All three of them will bring a great deal of industry expertise to our organization, which will, no doubt, benefit our members greatly.”

Aaron Jonas

Randi Muzumdar

Catch up on the previous issues of Northeast Dairy Magazine.

SUSTAINABILITY

FRONT DESK

Meet the Board

Third Quarter 2020

SUSTAINABILITY

What’s in the Bag?

RESPONSE TO COVID

Purchasing by Race, Generation

BUSINESS

Addressing Mental Health

nedairyfoods.org

Visit issuu.com/nedmagazine 18 • Northeast Dairy Foods Association, Inc.

Mark Toppel

USDA Secretary Tom Vilsack

BY GARY LATTA

R

ecently named USDA Secretary Tom Vilsack has had a long and proud career with some interesting twists over the years. Let us take a quick look at some of the highlights and biographical notes surrounding Vilsack’s career, a few of which readers may be unaware. Much of Vilsack’s early life, particularly his college years, were spent in Central New York, not far from Syracuse and Albany.

Vilsack was born Dec. 13, 1950 in Pittsburgh, Pennsylvania, and was left at a Catholic orphanage as an infant.

His original name was Kenneth. Infant Kenneth was soon adopted by Dolly and Bud Vilsack, who renamed him Thomas. Bud Vilsack was a real estate broker and insurance salesman. Dolly was a homemaker.

In his late teens, Vilsack attended Hamilton College in Central New York and earned an undergraduate degree in 1972.

Hamilton College is set in a quaint rural area between Verona and Utica and is reputed to be one the finest private liberal arts institutions in the nation.

During his time at Hamilton College, Vilsack met Ann Christine Bell, and the two were married in August 1973.

Shortly after, he attended the University of Albany earning his law degree in 1975. He and Ann decided to move to Ann’s hometown in Mount Pleasant, Iowa, where he joined her father’s law firm. In the years to follow, Vilsack was involved in a few local Mount Pleasant public projects. As he became well known in the community, an opportunity to run for mayor presented itself. Vilsack was elected mayor in 1987.

In 1992, he ran for office in the Iowa State Senate and won. He was reelected in 1994. Then in 1998, Vilsack ran for governor of Iowa and was victorious. He assumed office in January 1999 and was the first Democratic governor of Iowa in 32 years. In 2002, he was elected to a second term.

After two terms as governor, Vilsack was chosen to be chairman of the Democratic Governors Association. It was at this time that Vilsack was introduced to national politics at a high level, something that was to shape the rest of his career. For a time, he served as chairman of the Democratic Leadership Council and later was a finalist for consideration as John Kerry’s running

mate in his bid for the presidency in 2004. In late 2006, Vilsack became the first Democrat to throw his hat in the ring for the 2008 presidential race. As the number of candidates grew, and Vilsack lacked adequate funds to continue, he dropped out of the race after just three months, throwing his support behind Hillary Clinton and playing a key role in her 2008 campaign.

Barack Obama became president-elect in late 2008 and was quick to offer the U.S. secretary of Agriculture position to Vilsack. He accepted and was later confirmed as the nation’s 30th secretary of agriculture, a cabinet-level position which oversees a $140 billion budget, 29 agencies, numerous programs and 100,000 employees. Vilsack faithfully served in this position for two full terms and was the longest-serving cabinet member for the Obama administration. At that time, Vilsack was also the longest serving U.S. secretary of agriculture in nearly 50 years. (The longest serving was James Wilson, who held the post for 16 years from 1897 to 1913, and the only one to ever serve under three presidents.) It is possible that Tom Vilsack could tie that 16-year record. We will have to wait and see.

After his first two terms as secretary of agriculture under Obama, Vilsack had plans to return to Iowa, where he and his wife would be closer to their families and grandchildren.

However, the lure of leading the U.S. Dairy Export Council as its president and CEO was too strong, and he assumed the position in January of 2017. Here, Vilsack provided leadership for the U.S. Dairy Export Council, overseeing all aspects of its global activities. During his four years at the U.S. Dairy Export Council, he was highly successful at expanding U.S. exports, most notably to southeast Asia.

Soon after Joe Biden officially became president-elect, speculation began as to who was going to be our new USDA secretary. On Dec. 10, 2020, Biden announced Vilsack would again serve as the USDA’s leader. Overall, the agricultural community, especially dairy, was pleased at Biden’s pick.

Vilsack is a well-known familiar face to the dairy industry, and his experience will be an asset as we face the many challenges in a post-COVID-19 world.

In addition to his previously mentioned academic achievements, Vilsack also has 10 honorary doctorate degrees and many achievement awards accumulated over a lifetime of service.

The Vilsack family has two sons, two daughters-in-law, and four grandchildren.

NED Magazine | Second Quarter 2021 • 19

DAIRY

20 • Northeast Dairy Foods Association, Inc.

Connecting With Consumers, Showcasing Nutrition in a Post-Pandemic World

BY CAROLINE K. REFF

A

year-and-a-half ago, no one thought twice about walking through the aisles of a grocery store, spending hours relaxing over a meal in a restaurant, eating from a hotel breakfast buffet or picking up a few pieces of cheese from a communal appetizer tray — but then the unthinkable happened. Suddenly, people were wearing masks, hand sanitizer was stationed around every corner and people were using technology to work from home and obtain the essentials they needed. While the pandemic has not been completely defeated, there is hope on the horizon. Slowly, people are starting to embrace a new normal, even though most can only guess what that might look like. COVID-19 has left no industry unchanged, and that includes the dairy industry. Yes, dairy has endured its struggles throughout the pandemic, but it has, for the most part, seen its products continue to remain a staple of the American diet and a beacon of good nutrition and deliciousness for the majority of consumers.

“This was not the year for dairy to be earthshattering. It was the year to connect with consumers and showcase the value of nutrition, sensory perception, a bit of indulgence and all the other benefits of dairy that we already had,” said Chicago-based Donna Berry, a food scientist, blogger, editor and consultant, who specializes in the dairy industry. “The beauty of dairy is that we were already there with nutrition, immunity and probiotics, and well positioned in that many of our products — string cheese, yogurt cups, ice cream novelties, single-serve bottles of fluid milk — were already available in individually wrapped packages at a time when people suddenly really wanted them.”

Still, even in the strangest of times, there is always something new, innovative or on the horizon to make us appreciate dairy even more. To that end, Berry outlined some of the trends that are helping the dairy industry further connect with consumers and continue to showcase its value as we anxiously await a post-pandemic world.

JUST A BITE!

One of the biggest emerging trends today combines the need for indulgence and/or comfort food with single-serve, portion-control-sized bites. According to Berry, tiny, delicious dairy desserts are all the rage.

Studies show that “snacks offer bite-sized moments of satisfaction and relief amidst uncertainty,” said Berry. “For people everywhere, snacking has been a lifeline and will be part of a new normal after the pandemic ends.” And while snacking has replaced full meals in some respects during the pandemic, the majority of people are more mindful of what they are snacking on and also believe that companies should do more to make snacks healthier for consumers with less processed sugar, more quality protein and smarter carbohydrates.

But that doesn’t mean that consumers intend to sacrifice moments of indulgence, particularly in these trying times.

“They are seeking out innovative flavors and textures but need help with portion control. An intensified focus on health and wellness is fueling the desire for moments of guilt-free indulgence, which must not equate to less pleasure and satisfaction,” said Berry. “It’s just the opposite. It truly suggests ‘just-a-bite’ – small portions of dairy deliciousness right inside the fridge.”

The category of refrigerated dairy desserts is something that has been underdeveloped in the U.S. but is big business in other parts of the world. Watch for more dairy processors to reinvent their current products into tiny luxurious refrigerated or frozen treats: pudding, mousse, pot de crème, cheesecake, ice cream and others, often put in sustainable packaging with organic ingredients and decadent new flavors.

IT’S ALL IN THE MIX

We all know that dairy goes with just about anything, but one new trend is in the blended space, according to Berry.

Companies are realizing that people just love their protein-filled

NED Magazine | Second Quarter 2021 • 21

dairy, as well as popular food items that make for an excellent match, so they’re rolling out such products as cheese spreads that combine creamy cheese with trendier food items like chickpeas, lentils or other legumes. Others include “elevated” chocolate milk that offers healthy full-fat milk as its primary ingredient, while reducing sugar and blending with plant-based “milks,” like coconut and almond, into single-serve containers. Similar beverages blend real milk with added protein (from milk protein concentrate and cream) for those looking to build muscle and support physical fitness, and even collagen is being added as another health benefit.

And, while it really doesn’t seem logical to call products that put coffee and dairy together a trend, there are some innovative items emerging. One of the newer drinks on the market (from a popular coffee chain that “America runs on”) is bottled, readyto-drink iced coffee combined with flavors we all love — like Girl Scouts thin mints, coconut caramel and s’mores — with real milk, cream and sugar.

The condiment category is another opportunity for dressings blended with a yogurt, sour cream or a buttermilk base,

along with herbs, spices and other interesting flavors, according to Berry. Other break out items are cooking creams that use a sour cream base with various flavorful cheese, herbal or vegetable ingredients for a quick and easy twist on chicken or pasta.

According to Berry, even though some of these blended products don’t meet “the strict definition of dairy,” and the industry acknowledges this, using the concept as a source of growth moving forward opens up many new doors.

HOME COOKING

People started cooking at home out of necessity during the pandemic, and while some are ready to race out to their favorite restaurant as soon as they are fully vaccinated, others will be content to stay at home and continue making their own meals. After all, it’s more affordable, and consumers can more easily control the ingredients depending on their health or dietary needs. People are enjoying putting a new twist on grandma’s secret recipe or the comfort of sitting down at the dinner table for a few minutes with family. So, the pandemic

Current Dietary Guidelines Hold Dairy in High Esteem

The Dietary Guidelines for Americans (2020-2025) reinforces dairy foods as vital to the diet, as they provide essential nutrients that most Americans need. That is why it is critical for the dairy industry to continue to offer the highest quality and best tasting products available, while also marketing these products to consumers’ tastes, preferences and buying power.

The guidelines put out include the following specific to dairy: • Three servings of dairy a day in the Healthy U.S. Eating pattern and Healthy Vegetarian Eating pattern, in keeping with previous guidelines • Dairy’s continued recognition as a distinct food group • Recognition that Americans aren’t consuming enough dairy to meet their nutritional needs

22 • Northeast Dairy Foods Association, Inc.

has had at least one benefit in that people are appreciating the art of home cooking again, said Berry.

A Deloitte poll of 3,000 U.S. consumers shows that nearly half will continue to buy fresh food, with cooking likely to outlast the pandemic health crisis. Since the 1960s, the share of disposable income spent on food eaten at home has shrunk steadily each year, while food eaten away from home has grown.

Before the pandemic, the statistics were pretty much a draw at 50/50. However, according to Berry, there are three potential reasons people will keep on cooking at home even when the pandemic is well behind us: 1. Even when people can go back to the office, many may not. This will eliminate some of the breakfast grabbed through a drive-thru on the way to work or office lunches and happy hours. If the new normal of working from home remains a common place practice, it may also limit the need for work-related travel, meaning airport and hotel meals will be down, too.

2. Any way you look at it, cooking at home is simply a more economical option. Since approximately 1 in 3 Americans

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NED Magazine | Second Quarter 2021 • 23

are worried about making ends meet post-pandemic, it only makes sense that they may opt for more affordable meal choices cooked right at home.

3. Consumers have simply gotten better at cooking during all those months stuck at home. Cookbook sales were up 145% during the pandemic, as were countertop appliances (32%), and services that bring groceries or pre-planned meals continue to be popular. According to Berry, some of the cook-at-home trend may be the result of the psychological scars of the pandemic, too, as some people will not be ready to return to busy, crowded spaces with or without a vaccine. When they want restaurant food, many may simply order take-out from their favorite spots.

RETURNING TO THE GROCERY STORE

Time will tell whether or not people will return to their favorite restaurants, but many do want to return more frequently to the grocery story. According to Berry, her own anecdotal survey indicates people do want to get back into at least some of their old routines. While she acknowledges that there is a lot of data to support a future of online shopping and curb-side pickup, there is evidence to suggest that consumers may change their minds once the world is actually safer.

24 • Northeast Dairy Foods Association, Inc.

“I believe we will find new ways to do old things, but we want to live,” she said. “We want to explore. We want to be intrigued. It’s up to marketers to entice us, and in-person shopping does a much better job of that.”

While there’s no denying online grocery shopping was literally a lifesaver for some, and technology can be a great thing, Berry said that people want to get back to walking the aisles of the grocery store and making their own choices about what to buy.

There are plenty of other trends already out there, and others are just around the corner. According to Berry, cheese has become the ultimate comfort food (although she believes plantbased cheese is a “no-go”) with limitless options (see article on page 34), high protein ice cream is going away (although ice cream itself has never been more popular), the plant-based alternatives category is here to stay and dairy’s naturally nutritious elements will continue to be front-and-center on consumers’ shopping lists.

(Editor’s Note: Thanks to Donna Berry for her insight and willingness to share her own knowledge, as well as excerpts from her dairy blogs. Subscribe to Daily Dose of Dairy at www.berryondairy.com for more information on the latest products, trends and other information on the dairy industry.)

Were You Raised in a Barn?

Good, clean living is important to healthy cows that produce healthy milk. Most dairy cows are raised in barns, so that

farmers can control the environment, ensure the herd is eating

a balanced diet and protect the animals from harsh weather and even predators. Some dairy farms use what is called “freestall” housing, which allows cows the ability to move about and eat and sleep as they like with access to food and clean water anytime, day or night.

The type of cow housing depends on the region of the country

and weather conditions, according to Leah Dorman, DVM. Regardless of location, properly cared for animals are provided stalls with clean, soft bedding that can include sand, rubber

mats or water beds. Stalls are an appropriate size for the cow, so

she can move in and out, stand or lie down easily. It’s important

for the cow to have good footing to prevent her from slipping.

Good ventilation in the barns is also important, not only when it’s hot outside but all year long. This can be achieved

through natural or mechanical ventilation, like fresh air inlets or computerized fans. Some farmers use water misters to keep

their cows cool, particularly in warmer weather. When the

weather turns too chilly, many barns are equipped with curtains

and doors that can be closed to protect the animals from the wind and cold.

NED Magazine | Second Quarter 2021 • 25

TRENDS IN COW CARE

This Isn’t Grandpa’s Dairy Farm Anymore

BY LEAH C. DORMAN, DVM

W

hile dairy farms don’t look the same as those from even a few decades ago, the values driving today’s dairy families are the same as generations past – and that includes a commitment to the highest standards of animal health, care and comfort. In fact, 98% of the U.S. milk supply participated in the National Dairy FARM (Farmers Assuring Responsible Management) program. Science and technology have continued to evolve for the betterment of the animals

and the delicious products they produce.

It takes dedication and a team of experts – farmers, nutritionists and veterinarians – to ensure that cows are well taken care of and that the milk they produce for the dairy products we all enjoy is safe and wholesome.

HEALTHY COWS EQUAL QUALITY DAIRY PRODUCTS

Especially in the midst of this global pandemic, we are all paying closer attention to our diets, striving to eat right in order to stay

healthy. While nutrition and health are garnering more focus at home, healthy diets for animals have long been a focus for today’s dairy farmers.

Diets are becoming more and more sophisticated thanks to extensive research and science. Careful attention is paid to what goes into a cow’s diet to ensure she is healthy and can produce quality milk for all of us to enjoy. Nutritionists are an important part of the team on dairy farms, formulating and balancing diets for the animals at various stages of maturity and production. It’s not one-sizefits all anymore. Think about the diet an Olympic athlete needs in comparison to what you and I eat on a regular basis. Cows, of course, are the Olympic athletes of the dairy world, but a milking or pregnant cow needs a much different diet than a growing calf. Cows need access to plenty of water, as well as appropriate nutrition for their stage of life and to ensure milk production. There’s no single approach, and getting this balance right is important, especially since cows can eat 90 pounds of feed and drink 30 to 50 gallons of fresh water a day!

COW SUPERPOWERS!

To talk about what cows eat on a daily basis is to talk about their superpowers! Cows, considered ruminant 26 • Northeast Dairy Foods Association, Inc.

There’s no single approach, and getting this balance right is important, especially since cows can eat 90 pounds of feed and drink 30 to 50 gallons of fresh water a day! animals, have four chambers in their specialized stomachs that convert feedstuffs humans can’t eat into something delicious that we can eat – like cheese, ice cream and yogurt.

In order to make the largest chamber of a cow’s stomach, called the rumen, have appropriate movement or ruminations, part of a cow’s diet needs to include some feeds that are high in fiber, such as hay and silage. Silage is fermented plant material, such as grasses or the entire corn plant. High fiber byproducts are often used to fulfill the need for fiber. These are materials that remain following the production of things of human interest – for example, whole cotton seeds after the production of cotton fiber or brewer’s grain, a byproduct of making beer.

Similar to what we learned in grade school about the importance of “My Plate” in delivering a balanced and healthy diet for us, the team on the farm must operate under many of the same principles when feeding their animals.

Cows must be fed diets that contain the correct amount and proportions of nutrients to stay healthy and productive: carbohydrates, proteins, minerals and vitamins.

Nutritionists formulate balanced diets that include corn or other small grains, hay, silage and key vitamins and minerals NED Magazine | Second Quarter 2021 • 27

(like calcium and zinc) to keep animals healthy. Often, nutritional specialty products are added to feed to enhance health and performance, as well as prevent disease.

These nutritional specialty products are making a real difference in dairy cows. Studies show that these products help support animal immune systems and improve overall intestinal health. As a bonus, many nutritional specialty products are all natural. The goal is two-fold: to bolster animal health, which translates into the production of safe, wholesome milk; and, to reduce disease, which may help reduce the need for antibiotics.

In fact, we’ve changed how antibiotics are used in animal agriculture, using less while preserving the ability to responsibly use them when needed to reduce animal discomfort.

Researchers continue to discover new products that can keep cows healthy and help decrease illness. For example, one nutrition specialty product from Phibro Animal Health helps decrease the effects of heat stress on cows, which is a common problem that can compromise animal health by weakening a cow’s immune defense. This, in turn, can also reduce productivity and lower milk quality.

There’s certainly more than meets the eye when it comes to keeping cows healthy. The bottom line is that when an animal

28 • Northeast Dairy Foods Association, Inc.

is healthy and its digestive tract and immune system are functioning properly, it grows and eats efficiently, while a sick animal may never reach its potential. It’s a round-the-clock commitment from farmers, whether they have 100 cows or 10,000, to consult with their veterinarians on the most up-todate and effective care available to keep the herd healthy, and, in turn, produce the safe and nutritious milk that goes into the dairy product we enjoy every day.

Leah Dorman, DVM, is the director of communications and consumer engagement at Phibro Animal Health.

As a veterinarian for more than two decades, Dorman understands the close link between animal health and a healthy, affordable food supply. She has also witnessed firsthand the growing disconnect between animal agriculture and consumers who have a growing curiosity about how food is produced. If you have questions about animal agriculture or Phibro, explore https://exploreanimalhealth.org/ or email Phibro.Dairy@pahc.com.

Good Night, Cow!

Cows Need to Keep Their Cool

C

ow comfort is an important concept in the dairy industry that ensures cows are happy, safe and healthy. A video, Modern Technology: Focusing on Cow Comfort, put out by the American Dairy Association Mideast, outlines some of the technology used to keep cows happy and producing milk. Here are just some of the innovations found on many dairy farms: • Robotic pushers keep feed within easy reach of cows at all times.

• Automatic calf feeders provide direct access to fresh milk all day long, so calves can eat whenever they are hungry.

• Robotic milking systems allow cows to be milked when they choose and give dairy farmers flexibility during a busy day on the farm.

• Milking systems have a milk flow sensor that removes the milking unit when each cow is done.

• Cows are kept clean and comfortable with giant rotating brushes that act like a scratching post.

• Technology like neck collars, ear tags and leg bands make sure cows are getting in their steps each day by digitally monitoring their daily level of activity (Source: www.drinkmilk.com)

A standard bed of straw or sand just doesn’t cut it for some cows looking to get some Zzzzs. According to a study, Cow Comfort and Why It Matters, by Marcia Endres, extension dairy specialist from the University of Missouri’s Foremost Dairy Research Center, cows given a water bed lie down in less than 5 minutes, as opposed to 8.5 minutes for those resting on straw or sand. Water beds are said to support a cow’s knees, often reducing lameness, and allow the animal to more evenly distribute her weight and promote better circulation.

Cows need to lie down and rest for approximately 12 to 14 hours a day. (They don’t sleep all of that time; often they spend their time chewing.)

NED Magazine | Second Quarter 2021 • 29

Something for Everyone

Dairy Celebrations Fill Summer Calendar Every day is a great day for dairy, but here are some upcoming summer days that specifically celebrate

various dairy products. Members might use these dates to celebrate with their employees or to

promote their products to customers and consumers through social media. Mark your calendars today!

JUNE 2021

Dairy Month

JULY 8: National Ice Cream Sundae Day JULY 11: Make Up Your Own Sundae Day JULY 13: National Nitrogen Ice Cream Day JULY 14: National Macaroni and Cheese Day JULY 17: National Peach Ice Cream Day JULY 18: National Ice Cream Day

JUNE 1: World Milk Day

JULY 23: National Vanilla Ice Cream Day

JUNE 2: National Rocky Road Ice Cream Day

JULY 25: National Hot Fudge Sundae Day

JUNE 4: National Cheese Day

JULY 25: National Wine and Cheese Day

JUNE 6: National Frozen Yogurt Day

JULY 26: National Coffee Milkshake Day

JUNE 7: National Chocolate Ice Cream Day

JULY 30: National Cheesecake Day

JUNE 18: National Cheesemakers Day JUNE 20: National Vanilla Milkshake Day

AUGUST 2021

National Eat Dessert First Month & National Goat Cheese Month

JUNE 20: National Smoothie Day

AUGUST 2: National Ice Cream Sandwich Day

JUNE 20: National Plain Yogurt Day

AUGUST 6: National Root Beer Float Day

JUNE 20: National Ice Cream Soda Day

AUGUST 7: National Raspberries and Cream Day

JUNE 26: National Chocolate Pudding Day

AUGUST 8: National Frozen Custard Day

JUNE 27: National Ice Cream Cake Day

AUGUST 9: National Rice Pudding Day

JUNE 28: National Tapioca Day

AUGUST 14: National Creamsicle Day

JULY 2021

National Ice Cream Month

AUGUST 17: National Vanilla Custard Day AUGUST 18: National Soft Ice Cream Day

JULY 1: Creative Ice Cream Flavor Day

AUGUST 18: National Ice Cream Pie Day

JULY 4: Celebrate America’s Birthday!

AUGUST 22: National Spumoni Day

JULY 7: National Strawberry Sundae Day

AUGUST 25: National Banana Split Day

(Source: https://www.juleeho.com/food-marketing-blog/2020-food-holidays-the-most-comprehensive365-day-list and http://www.holidays-and-observances.com/food-holidays.html) 30 • Northeast Dairy Foods Association, Inc.

Ben & Jerry’s Has Gone to the Dogs

F

or the first time in the ice cream maker’s history, Ben & Jerry’s has unveiled two new flavors designed exclusively for canines. Doggies Desserts

by Ben & Jerry’s are frozen treats that the company says are “paw-sitively perfect” for your pet, as they are specifically formulated for dogs with a sunflower butter base.

The frozen fun of peanut butter and pretzel swirls in Pontch’s Mix or the creaminess of pumpkin and mini cookies in Rosie’s Batch “is just what a good dog needs after a raucous puppy playdate or a long walk with their human,” according to the company.

Doggie Desserts use the same high-quality ingredients used in Ben & Jerry’s human ice cream, too.

“We know our fans love their dogs and treat them like family,” said Lindsay Bumps, global marketing specialist for Ben & Jerry’s and a certified veterinary technician. “We created this product line so pups can enjoy something even better than belly rubs. Doggie Desserts are the sweetest treat they’ll ever put their paws on.”

As a dog-friendly workplace, the company’s headquarters in Vermont often has up to 40 pups keeping employees company, including a Frenchie named Pontch and a rescue mutt named Rosie, who are the namesakes of the two Doggie Desserts.

NED Magazine | Second Quarter 2021 • 31

NYS CHEESE MANUFACTURERS’ ASSOCIATION

Consumer Purchasing Patterns Have Changed, but Cheese Remains Strong

BY NATHAN PISTNER AND ALEX SOLLA

C

heese consumption in the Northeast has gone through a turbulent year, culminating in a huge surge starting in 2020. After riding the wave of uncertainty, both in terms of production and consumption, it feels like the forecast for 2021 is strong. The questions on everyone’s minds are: What are people buying? Who is doing the buying? Where are they buying? And what are the prospects for the rest of 2021?

The most obvious changes have been in where the purchasing has been taking place. With schools open partially or intermittently and states’ reopening plans, industrial consumption has been slow to rebound but is trending up with some retailers reporting pre-COVID numbers. Restaurants have made inroads by providing curbside pickup, which 32 • Northeast Dairy Foods Association, Inc.

has helped sales considerably. Delivery continues to provide both social distancing and convenience. Cooking at home has been the biggest increase in cheese purchases. No other packaged food has the convenience of cheese.

The most popular cheeses being consumed are time-tested stalwarts: cheddar and mozzarella. Whether in the form of sliced cheese for sandwiches, shredded cheese for pizza and cooking or cubes of cheese for snacking, cheese can be a healthy part of a diet that also satisfies the need for comfort during these uncertain times.

For those looking for something special and a little out of the ordinary, artisan cheeses fill the gap. Homemade charcuterie has become popular as a way to try new styles of cheese and accompanying cured meats. Along those lines, plant-based cheeses have entered the market space.

With social distancing forecasted for the near future, the expectation is that there will continue to be plenty of home cooking, pizza delivery and kids who love snacking on cheese. As more of the population becomes vaccinated, more people will be returning to restaurants.

Looking ahead to spring and summer with outdoor dining and picnics at favorite parks, the summer looks promising for cheese sales.

Nathan Pistner is president of the New York State Cheese Manufacturers’ Association.

Alex Solla is the executive administrator, secretary and assistant treasurer of the New York State Cheese Manufacturers’ Association.

Everything’s Better With Cheese The National Dairy Council and Produce for Better Health joined forces on the approach that each group’s products were “better together.” Studies by the two organizations have shown that today’s consumers aren’t meeting the daily recommendations for dairy intake, and they are not getting the recommended amount of fruits and vegetables either. This initiative represents more than 400 growers, shippers, packers, merchandisers, commodity boards, trade associations, health professionals and supermarkets working to increase the consumption of fruits and vegetables, along with dairy. Anyone in for some broccoli and cheese?

NED Magazine | Second Quarter 2021 • 33

Do Consumers Really Like Non-Dairy Cheese?

W

hile there’s no denying that plant-based alternative products made from almond, soy and oat “milk” are flying off the shelves, do they really stand up to the real thing? Consumers may be buying it, but are they coming back for more? Numerous research, studies, focus groups and anecdotal evidence point to consumers that are still conflicted. Many, especially vegans, like the idea of cheese that doesn’t come from a cow (or sheep or goat), although some will admit the taste and texture are just not quite the same. Still, they eat it and will purchase more.

Flexitarians, those looking to limit meat and dairy, aren’t as convinced, noting that the flavor and texture of many of their favorite cheeses are hard to get just right in a plant-based form.

Others, just outright dislike it, noting its “plastic” look and

“strange” texture. Even products like plant-based cream cheese and other vegan spreads were considered tasty but not the same as the real thing. Those who ate plant-based cheese as part of a complete dish (e.g., in a casserole or in a sandwich) were more likely to enjoy the product than those who consumed a chunk or slice. Many producers of plant-based cheese believe that the product is only in the “nascent stage,” similar to what the popular plant-based “milk” was a few years ago and are working to make it more widely accepted. But, others say real cheese made from cow or goat’s milk is hard to mimic, as its taste is a delicate balance of fermentation, temperature, enzymes, microbial activity and the aging process. In the end, the alternative cheesemakers are not going away. If anything, they seem more determined to make plant-based cheeses not only edible but incredible!

Cheddar Is Better While there’s no arguing that gourmet cheese and exotic flavorings are extremely popular, it’s comforting to know that many Americans are very happy to stick to the classics. YouGov, an

international research data and analytics group located in London, surveyed almost 9,000 U.S. adults in early 2021 to find out what favorite cheese is. And the answer is… CHEDDAR! Yes, classic cheddar was the outstanding favorite with 19% of respondents choosing its deliciousness.

American cheese came in second at 13%, while mozzarella (9%), Swiss (8%) and pepper jack (7%) took the other spots in the Top 5. The same survey noted that ricotta came in with only 1%

of the vote, and other cheeses like feta, goat cheese and muenster only took 2% each. Overall, 92% of those surveyed said they enjoyed cheese in one form or another – which is great news for the dairy industry.

34 • Northeast Dairy Foods Association, Inc.

Pick Up a Pint

Stay in Your Lane: Autonomous Trucks Are Becoming a Reality

Ice cream has arguably become one of the most

popular comfort foods, and it comes in every shape and size. However, the pint reigns supreme when it

comes to consumer choice.

Approximately 16 fluid

ounces of product, a pint, while often more expensive

by volume, is just enough to

satisfy a craving for a tried and true favorite but not too

much to risk sampling a new

flavor. Pint-sized ice cream also contributes to portion control (because, let’s face

it, you’d eat a whole gallon if you could!).

I

t may not be long before dairy products are headed down the highway without a driver!

According to gearbrain.com, at least eight autonomous truck companies, like Embark, Daimler, Einride, TuSimple, Waymo, Volvo, Ike and Tesla, are moving ahead with developign driverless haulage technology.

Tesla, for example, has pushed out delivery of its first electric commercial truck, the Semi, but has still received orders from a number of well-known companies. The trucks will have Tesla’s Autopilot self-driving software and provide a semi-autonomous system, similar to Tesla’s automobiles. That means that the truck’s accelerator, brakes and steering are managed by the computer on highways, but a driver is still behind the wheel at all times.

Many companies are working on a system where a lead truck controls the acceleration and brakes of a fleet of trucks that follow, so that they all accelerate or decelerate together. Some systems require a driver to be in place in a lead vehicle, while others let software take the wheel. This concept of “platooning” is thought to reduce air resistance and decrease fuel costs. Many systems are designed for trucks to drive autonomously on highways, while leaving the more intricate beginning and end of the trips under human control. Other companies are experimenting with removing truck cabs and using “drivers” who monitor, control and supervise a number of trucks away from the vehicle.

NED Magazine | Second Quarter 2021 • 35

Just One More Wedge — and One More Glass — Might Be Good for You

W

ho doesn’t like a bit of red wine with their cheese? While it may seem like an indulgence, your body may thank you for it in the long run. A study out of Iowa State University claims that moderate consumption of red wine and cheese may be good for brain health, particularly in combatting Alzheimer’s disease.

The study was published in November 2020 in the Journal of Alzheimer’s disease.

This study included more than 1,700 adults, ranging in age from 46 to 77, who were tracked for 10 years during which they were given three higher fluid intelligence scores throughout the process to measure cognitive abilities. The data suggests that the wine and cheese combination had the best effect on 36 • Northeast Dairy Foods Association, Inc.

those without a genetic predisposition for developing memory issues related to aging. Two of the key findings of the study suggest that cheese was the “most protective” food for avoiding cognitive age-related issues and that consumption of a moderate amount of red wine daily was shown to be “related to improvements in cognitive functions.”

While the study doesn’t prove that eating more cheese will help someone improve brain power, cheese has long been known to be connected to positive health outcomes, including lower blood pressure and a slower rate of cognitive decline. While Iowa State researchers admit more information is needed, it seems a wine and cheese pairing certainly can’t hurt!

Find the Per fec t Pairing

C

heese doesn’t only go with red wine.

It seems to be a favorite with all types of wine, but do you know what to serve with which? According to an interview with Master Sommelier Gerard Basset on Decanter.com, there is one main rule: “Choose whether you want to give the lead role to the wine or the cheese. If it’s the cheese, pick a wine with less character that will just complement it in the background. If you want the wine to the be star, go easy on the forcefulness of the cheese.”

• Blue cheese like Gorgonzola or Roquefort: Sauternes, Moscato • Goat, like Manchego/sheep, like Pecorino cheeses: Dry Riesling, White Bordeaux, Sauvignon Blanc, Southern Rhone • Washed-rind cheese like Munster, Mahon: red Burgundy, Spanish Rose, Alsace Pinot Gris

Some recommended pairings from various sources in the wine industry include: • Hard cheese, like cheddar, ParmigianoReggiano, Comte, Gruyere: White Burgundy, Pinot Noir or a red Bordeaux blend; Chianti, Cabernet Sauvignon • Soft cheese, like Brie, Camembert, Neufchatel: Champagne, Chablis, Beaujolais, light Pinot Noir

NED Magazine | Second Quarter 2021 • 37

Innovations on the Horizon to Reduce Food Waste

F

ood waste is a continuing problem as our world works to both expeditiously feed those without proper access to food and also further sustainability initiatives.

While this is not a problem unique to the dairy industry, it is something any entity that produces, manufactures, sells or consumes food products is concerned about.

In March, the Grow-NY Food and Agriculture Competition partnered with eCornell to present a webinar called Unwrapping Food Waste, which gave some interesting facts and figures about just how much food is wasted in the U.S. Members of the panel included Kai Robertson, an independent consultant on sustainability; Paola Appendini, Ph.D., principle packaging engineer, Mars; and Toby Thomas, president and CEO of So Fresh Inc. Waste is defined as “edible food not eaten by people for any reason,” according to Associate Professor Julie M. Goodard, Ph.D., Department of Food Science, Cornell University, who facilitated the webinar. This could include “plate waste” or the food left on one’s plate after a meal; spoilage; or food that is considered too visually unappealing to eat or contains so-called inedible parts of food (stems, leaves, etc.) that people assume they can’t eat.

Up to 40% of the food supply in the U.S. becomes waste, which is equal to over 200 pounds of food per person 38 • Northeast Dairy Foods Association, Inc.

each year! According to the webinar, if food waste were a country, it would be the third largest greenhouse gas emitter behind China and the U.S. The further along in the food supply chain that something is wasted, the larger carbon footprint it has, as so much energy, labor and water goes into the manufacturing of food, as well as bringing it to market.

According to the webinar, the following is a breakdown by percentage of food wasted by stage of the supply chain: • Producer/Farm: 31% • Post-harvest: 23% • Processing: 12% • Distribution: 13% • Consumption: 21% What can be done about it? Robertson presented a Food Recovery Hierarchy, which made a number of recommendations from most preferred to least preferred in terms of dealing with food waste: • Source reduction and reuse (reduce the volume of surplus food) • Feed hungry people (donate extra food to food banks, soup kitchens and shelters) • Feed animals (Divert food scraps to animal feed)

• Industrial uses (Provide waste oils for rendering and fuel conversion and food scraps for digestion to recover energy) • Composting (Create nutrient-rich soil) • Landfill/incineration (use this as a last resort)

PACKAGING: SUSTAINABILITY OR SHELF-LIFE?

Consumers definitely want “clean label products,” which, in simple terms, means less packaging, but many factors impact making this possible, according to Appendini. The first question is: How can we make packaging more sustainable without impacting shelf-life?

The traditional rule of food packaging hasn’t changed much. Its purpose is to contain the product, protect it from damage (particularly in transport), make it convenient (easy to carry and use) and allow communication (show nutritional information, ingredients, etc.).

Companies are looking at “active packaging,” which is designed to go beyond containment and protection to improve food safety. One idea includes incorporating antimicrobial agents into

Packaging Concerns Have Been Shelved for Now While consumers continue to be concerned with the a polymer film to suppress the activities of certain microorganisms that can contaminate food. Consumer demand for local and organic products has increased the need for antimicrobial solutions.

However, current methods have not been well accepted by many consumers, as they demand products that come from natural sources. While a number of natural antimicrobials have been discovered, scientists are still battling how effective these elements may be if they are outside of stable lab environments.

Other ideas include reduction of spoilage by introducing antioxidants into packaging, and even something on a carton or container that could tell a consumer when a product is truly past the point of freshness or is truly unsafe to eat (as opposed to “Best By” or “Sell By” dates, which can err on the conservative side).

environment and sustainable practices, the pandemic has

moved personal health and safety ahead of some of these

issues, particularly when it comes to packaging. A few years ago, consumers were adamant about excess paper and

plastic use and the utilization of non-earth friendly materials, but you’re less likely to get the side eye for using a plastic

straw or cup these days than you were before COVID-19 struck. This, of course, has come from a sense of caution during times when people still have some level of fear of

anyone else handling their belongings – no less their food and drink. The desire for individual portions has trumped

a communal bowl of dip, for example. This is likely to see a gradual reversal as people recover from the impact of the pandemic. In the meantime, many companies had already turned to packaging made from recycled materials, and the

dairy industry, as a whole, has done a great deal to invest in sustainable packaging options.

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NED Magazine | Second Quarter 2021 • 39

Following a Diet Trend?

Don’t Deny the Dairy

I

t seems that Americans are always looking to the latest diet trends with the intention of not only losing weight but also finding a lifestyle choice to keep their bodies healthy. Three of the most popular diets today are the Keto diet, the Paleo diet and veganism. All have their pros and cons, but where do dairy products fit in?

TRENDING NOW

The Keto diet, for example, targets the use of fat for energy instead of carbohydrates, which means full-fat, low-carb dairy products like many cheeses can be enjoyed. Fluid milk, however, is not typically consumed on the Keto diet, as it does not provide enough fat to meet the plan’s criteria.

The Paleo diet focuses on food our ancestors could obtain through “hunting and gathering” thousands of years ago — like meat, fish, fruits, vegetables and seeds. The overarching theme is to eat whole foods and avoid those that are processed. This diet specifically advises avoiding dairy, especially low-fat dairy products. However, some versions of the diet do allow for full-fat dairy like butter and cheese.

Then, there’s the vegan diet, which is a stricter version of vegetarianism because it restricts all animal products. While many people choose it for health reasons, others choose it for ethical or environmental reasons. A vegan diet is typically devoid of any type of animal products, including dairy. A vegan even avoids food that many might not realize contains animal-based ingredients, like whey and gelatin.

IT’S ALL ABOUT BALANCE

According to Joseph W. McFadden, Ph.D., associate professor of dairy cattle biology, Department of Animal Science at the College of Agriculture and Life Sciences at Cornell University, “Human curiosity has provoked the spread of misinformation about science, dairy production and the food we eat.

40 • Northeast Dairy Foods Association, Inc.

And, while there are certainly good choices and bad choices, the key is balance.”

There are scores of studies that show no single food or group of foods are the healthiest for you. In fact, often the interaction of various components can be the most nutritionally beneficial.

“Eating too much of any one thing is not good for you,” said McFadden, “but don’t simply avoid animal-sourced foods with the idea that those things are going to compromise your health. You can have some full-fat and other animal products in your diet and stay healthy.”

McFadden noted that some of the more popular diets are often missing vitamins and minerals that the body needs to maintain optimum health. And, it’s not always the obvious things, like the Vitamin D found in milk. Without animal-based foods, for example, people can miss out on other essentials like riboflavin, zinc and iron, which are essential to converting food into fuel, boosting the immune system and carrying oxygen from the lungs to the rest of the body, respectively.

But what about those who argue they can just pop a vitamin or other supplement to make up for what’s lacking? While McFadden said these are “better than nothing at all,” he maintained that supplements are not a substitute for the real thing.

Bioavailability: The proportion of a substance (e.g., a vitamin supplement) that enters the body’s circulation when introduced into the body and so is able to have an active effect.

“The bioavailability in a supplement isn’t the same as what’s present in a whole food,” he added.

McFadden also cautioned that people should be aware of what they are actually consuming if their diet is heavily focused on plant-based alternative products, including nut “milk” or protein-based sports drinks, as these often have more sugar than fluid cow’s milk, as well as thickeners and other additives.

“Overall, there’s really no magic solution, but a healthy, well-balanced diet that limits processed foods and artificial ingredients should give most people the nutrition that they need – and most dairy products can certainly be a part of reaching this goal,” said McFadden.

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NED Magazine | Second Quarter 2021 • 41

A Super Fruit and a Super Root Named Flavors of the Year

L

ast year, blueberry was the talk of the town, but 2021 has a different flavorful twist! Firmenich, the world’s largest privately-owned fragrance and taste company, announced two flavor picks this year: ginger and yuzu. According to the company, these represent “the world’s collective desire for strength and

optimism: two superhero-like qualities of a super root and a super fruit.”

“The decision to select our Flavors of the Year was based on emerging consumer signals,” said Mikel Cirkus, global creative director, foresight & trenz, Firmenich. “Both ginger and yuzu have really gained global, cross-category momentum over the last two years, and each of them, in their own right, is

NORTHEAST DAIRY SUPPLIERS ASSOCIATION BUYERS GUIDE IS NOW LIVE!

buyersguide.neastda.org

Showcasing all NDSA member companies by category, description and SEO-friendly search terms. This guide assists and encourages members doing business with members.

Find new products and services, industry events, deals and more!

Check it out today and share it with specifiers and purchasing agents at your company.

For more information about the NDSA Buyers Guide, contact Northeast Dairy Media 315-445-2347.

42 • Northeast Dairy Foods Association, Inc.

symbolic of the consumer’s desire for a sense of normalcy and healing,” Ginger: According to Firmenich, ginger has been increasing in popularity for a decade, and the company expects to see a dramatic uptick in products that contain the zingy taste, particularly in hot beverages but also in ice cream and sweeteners. Consumers seem to love this root vegetable for its “inherent warming nature,” as well as its properties thought to detoxify, aid in digestion and boost immunity.

Yuzu: While yuzu is not nearly as popular as ginger worldwide, it has become more well known lately.

According to Firmenich, this super fruit has more than doubled in use over the past five years, particularly in

beverages and confections. Originating in Asia, yuzu is becoming more popular globally, as it “adds excitement and differentiation” across categories, according to the company. Yuzu has a fragrant peel and a delicate, floral juice.

In Japan, this super fruit symbolizes sunshine and good luck.

GIVE US SOMETHING TO CHEW ON. Are you introducing an interesting product?

Have you instituted cutting-edge processes?

Are you welcoming a new hire?

Is your business expanding, moving or changing?

Do you have other news to share?

Northeast Dairy magazine is always looking for Member and Industry News.

Email your information, news releases and/or captioned photographs to us at editorial@nedairymedia.com.

NED Magazine | Second Quarter 2021 • 43

MemberProfile

HUDSON VALLEY FRESH

A Long Journey to Protecting Family Farms

BY COURTNEY KLESS

S

ixteen years ago, Sam Simon started Hudson Valley Fresh with a simple mission: to give farmers a fair price for their milk.

That founding vision is still the driving force behind the cooperative’s work.

“We’re not trying to build an empire,” Simon said. “We’re just trying to protect these family farms.”

Simon was born and raised on a dairy farm in Middletown, New York. While he was in medical school, his father passed away unexpectedly, and Simon became responsible for running his family’s farm. At the time, he was 1,200 miles away in St. Louis, Missouri.

44 • Northeast Dairy Foods Association, Inc.

“When my father died, I was blessed to have a loyal employee who had been around since 1967 and said to me, ‘Boss Jr., I’m here. Don’t worry about it.’” Simon said. “I said, ‘Howard, the only time you’re going to sleep is when I come home every four to six weeks on a weekend.’ Think about that: seven days a week, he was there. In the summer, I had a couple more weeks, so he would take a break. During the year, I would fly in on a Friday to La Guardia. My mother picked me up, and I’d be in the barn at 4 a.m. on Saturday. Howard and I would exchange a few words. He would leave and come back at 5:30 p.m. on Sunday.

Then I’d go back to the house, shower,

and my mother would drive me back to the airport.”

Simon would continue to fly back and forth for eight years, first from St. Louis, while he finished medical school, then from Pittsburgh, while he completed his training in orthopedic surgery. After that, he opened a practice in Poughkeepsie, New York, and continued working on his family’s farm. They sold the dairy herd in 1983, then cash cropped until 1995 to cover basic expenses. Years later, after retiring from surgery and purchasing Plankenhorn Farm from a former patient, Simon had a realization.

MemberProfile

“In 1977, there were 370 dairy farms in Dutchess County. Today, there are about 11,” Simon said. “I could afford the luxury of having a dairy farm because I had a day job that allowed me to save money, and I could supplement the extra $20,000, $30,000, $40,000, $50,000 a year. Farmers can’t do that.

Not a small farmer with 50 or 100 cows.

So that’s why I said, ‘We have to think outside of the box.’”

That realization led him to found the cooperative Hudson Valley Fresh in 2005.

Since then, the cooperative has grown from three farms to nine, all located within 20 miles of one another — and all sharing an equal part of the business. Farmers are guaranteed a price of $23 per hundred weight for any milk sold under the Hudson Valley Fresh label (The pool price in March was $16.12 per hundred weight, and they receive the

difference as a monthly dividend.).

Simon said the response from those farmers has been “overwhelming gratitude.”

“I can say unequivocally that five out of the nine farms would be out of business today,” he added. “The bigger ones would probably have survived, but five of them, milking 40, 80, 100 cows, no. They told me point blank, ‘We’d be done.’”

CONTINUED ON NEXT PAGE ►

NED Magazine | Second Quarter 2021 • 45

MemberProfile Hudson Valley Fresh currently offers nine products: milk (in whole, 2%, 1%, skim and chocolate varieties), half & half, sour cream, heavy cream and yogurt.

It also produces ice cream mixes for several large stores. Hudson Valley Fresh’s products don’t contain any additives and are only a blend of milk from its nine farms.

In the early days, the cooperative processed its milk at Ronnybrook Dairy, before outgrowing its capacity. It then moved to the Boice Bros. Dairy plant in Kingston, New York, eventually purchasing it in August 2019. Today, Hudson Valley Fresh’s products can be found locally, as well as in Connecticut, Long Island, and the New York City Metro area.

“New York City came about because some people have country homes up here,” Simon said. “Someone went back to New York City and went to a store called Eli’s in Manhattan and said, ‘Eli, I want you to taste this. This is delicious.’ Eli called me at 6 a.m. while I was in the barn, and said, ‘I’ve never tasted anything this delicious.’ He put it on the shelf and removed all his generic milk and had only the organic and Hudson Valley Fresh.”

Hudson Valley Fresh’s name was inspired by the freshness of its milk. Simon said there are a few things that set the cooperative’s products apart — its milk goes from farms to area grocery stores in three days; its whole milk is non-standardized and represents herds of Holsteins, Jerseys, Guernseys and Brown Swiss; and its milk enters the factory each day with an average of 120,000 somatic cells per milliliter. By comparison, premium milk has a somatic cell count of less than 200,000, and the average count for milk on the market is 250,000 to 300,000.

“It’s rare that we lose a customer because of quality,” Simon said.

46 • Northeast Dairy Foods Association, Inc.

Along with its commitment to producing high-quality dairy products, Hudson Valley Fresh is working to preserve the agricultural heritage of Dutchess and Columbia counties, which represents 8,000 acres of open space.

“The farmers are great stewards of the land,” Simon said. “The other nice part is it’s generational. We have another generation behind us that wants to stay in dairy. How do you convince them

to stay in something if you can’t make a living? Farmers don’t want to drive Ranger Rovers or Mercedes. They just want to pay their bills and educate their kids and have them come back and take care of the farm. They want to stay. This gives us some hope.”

Courtney Kless is a writer/editor for Northeast Dairy Media.

­

NED Magazine | Second Quarter 2021 • 47

MemberProfile

165-year-old Business Continues to Expand as Solution-Based Innovator in Cleaning and Sanitation

BY COURTNEY KLESS

A

FCO has been keeping businesses clean since 1855, but this past year the company has really shown what it’s made of, making sure it was able to supply its customers with the products they needed to keep their own workplaces and products safe throughout the pandemic.

The company was founded in 1855 by Alex C. Fergusson, a Scottish immigrant, selling primarily commodity cleaning products and lubricants in its early days. AFCO would eventually expand into the water treatment industry, acquiring Tennessee Research. In the years that followed, the company was purchased twice, first by Diethelm Holdings in 1989, then

by Larsen MacColl Partners in 2009 – the second helped it expand in North America and Europe. AFCO was acquired again in 2017, this time by Zep, Inc. “For approximately the last three-and-a-half years, there has been a restructuring, taking the culture, activities and capabilities of AFCO Food and Beverage and migrating them into a transition form of Zep, using the power of a large corporation and the upward growth trajectory of AFCO Food and Beverage to build a powerful cleaning and sanitation group throughout the globe,” said Bob Klinetob, senior vice president and general manager. “That’s ultimately where we stand today with looking at the pandemic. Quite often, people say we’re ‘recession proof.’

People need to eat. From a cleaning and sanitation standpoint, now, I guess we can use the new term that we’re ‘pandemic proof,’ too. And, that’s not something we brag about, but it’s something that we truly have a passion for because we’re able to help provide services to those vital industries and help feed the world.”

48 • Northeast Dairy Foods Association, Inc.

AFCO has seen an uptick during COVID-19. Andy Senneca, eastern vice president/dairy technical, said the company’s sales of disinfectants, hand cleaners and hand sanitizers have all increased, along with its number of new customers.

“A couple of our competitors had issues with shortages of certain products, and we were fortunate enough to have a pretty stout supply chain behind us,” said Senneca. “We were able to supply our customers without much of an issue throughout the pandemic. This really allowed us to grow more than we’ve ever seen before.”

AFCO offers food sanitation cleaners and sanitizers, as well as janitorial and maintenance products and a water treatment group. It acquired EcoClear this past fall, adding the cleaning of cooling units and sanitization of facilities to its portfolio of services. Zep also recently introduced the Zep Assure Program, which combines the company’s core cleaning and sanitation products with surveys and audits – and helps businesses provide a safer environment.

“Our goal is to ‘Circle the Site’ of our customers with a complete sphere of product support and programs,” said Senneca. “It’s pretty much a whole core around food and beverages that we can cover for our customers.”

But, Klinetob said what makes AFCO truly unique is its capability.

“We really don’t take a product stance on what sets us apart,” he noted. “We use the phrase ‘promise and deliver.’

We aim to provide the substance behind the product. In our equipment division, we have a lot of customized equipment.

We’re able to take our IT infrastructure, in-house know-how of videography and computer expertise to provide high-level

MemberProfile

“We were able to supply our customers without much of an issue throughout the pandemic. This really allowed us to grow more than we’ve ever seen before.” data capturing information for our customers. That’s just one example of listening to our customer and providing a customized solution for their needs.”

Those solutions aren’t the only way AFCO has adapted to changes in customer needs – and the industry – over the years.

It has a group of six sigma-qualified individuals who work with customers to help them save energy, time and more.

“Back then, it was, ‘I need the price of this caustic foam cleaner. How much can you provide it for?’ Those days are pretty much gone,” said Senneca. “There are some smaller companies that still kind of do it that way, but customers are looking for a partner, one that can provide them with solutions to help them in their programs.”

AFCO’s culture also sets the company apart from its competitors. It takes a bottom-up approach to management, and

Senneca said there is a lot of daily interaction among its employees.

“We always have felt that we are a small, almost family, company within this big company,” he said. “I think that’s one thing when we talk to our customers and we ask them, ‘How do you compare us to other companies you’ve worked with?’ They say just our culture and our people and the way we respond very quickly.”

As for the future, the company is working to expand on the West Coast (AFCO’s headquarters are in Chambersburg, Pennsylvania, and Zep is based in Atlanta), and raise its profile in Canada and Mexico. Zep also introduced a new initiative, known as Vision 2025. It includes five values that will help guide AFCO’s growth – stewardship, passion for problem solving, empowerment, expertise and doing the right thing – as well as a commitment to reducing water pollution and Zep’s carbon footprint.

“The ultimate goal is to make sure that our family, friends and communities have a better and safer place to live for generations to come,” said Klinetob. “As part of Vision 2025, one of our main initiatives is that we don’t only sell transactional items, we take on that programmed approach. We want at least 55% of our total sales to be solutions-based. We want to expand as a solutions-based innovator and provider to the globe.”

Courtney Kless is a writer/editor for Northeast Dairy Media.

NED Magazine | Second Quarter 2021 • 49

Member News

2020 NDSA Scholarship Winner Pursues Ph.D. Apply Now: Association Adds Trade School Eligibility in 2021

H

eather Young grew up on her family’s farm in Sherburne, New York, that dates back to 1862.

Her parents are still milking cows there today, and she and her brother are the sixth generation to have worked at the Lathrop Family’s Westover Farm. It wasn’t until several years after she left the farm, however, that she realized what an impact the commitment and work ethic to dairy farming had on her. Holding down a job while earning multiple degrees, being a wife and raising two small children is demanding, but it has been a bit easier with funds from the 2020 Northeast Dairy Suppliers Association’s Bruce W. Krupke Memorial Scholarship.

Young became eligible for the scholarship as an employee of Northeast Dairy Foods Association member Dairy Farmers of America, Inc., where she was a field representative, National FARM program trainer and certified milk inspector from 2010 to 2020. A graduate of SUNY Morrisville with an associate degree in agricultural business and a bachelor’s degree in dairy science, she pursued her online master’s degree in agricultural education and communication from the University of Florida.

Married to a Coast Guard veteran, much of her tuition was paid for through a Veterans Administration education program for disabled veterans and their spouses. During this time, she was also working full-time for DFA. In fact, she gave her 50 • Northeast Dairy Foods Association, Inc.

final presentation for her master’s degree via Zoom during a particularly busy day at work “The people at DFA were wonderful to work for,” she said.

“I don’t think I could have done it without such an understanding company.”

It was during that final presentation, which revolved around a communication plan to encourage farmers to start telling their stories on Facebook about why they farm and the passion they have for the industry, as well as providing conversation topics for “Open Barn Door Tours,” that the committee at the University of Florida stopped her mid-sentence and asked if she’d ever considered fleshing out her ideas by pursing a Ph.D. The cost was prohibitive, so Young brushed off the idea at first, but the university pursued her and offered a financial package that she could manage. In July 2020, Young, her husband, and their two children, ages 7 and 4, left their home near the Canadian border in Upstate New York for the Sunshine State, so she could pursue her Ph.D. in-person at the University of Florida.

Along with her own Ph.D. studies, she is a teaching assistant for an undergraduate course on agricultural issues. “Each week is a different topic, from water management to animal agriculture, and I get to share my 33 years of industry background with the students. This has been such an amazing opportunity

Member News Applications are available online at neastda.org and must be received by Tuesday, June 1, 2021. in memory of former association Executive Vice President Bruce W. Krupke. In 2020, NDSA gave out a total of $20,000 in scholarships.

“People like Heather are exactly the kind of applicants we are so pleased to assist through this scholarship,” said NDSA President Bill Elliott. “She not only grew up in the dairy industry, but she is continuing to contribute to its success today, and we are happy to be able to support her in that.”

2021 SCHOLARSHIP TO EXPAND TO TRADE SCHOOL APPLICANTS

Heather Young 2020 NDSA Scholarship Winner

to help set industry misconceptions straight,” she said.

Student feedback on her work in the classroom has her thinking about pursuing teaching in some area of agriculture, and she has since decided to complete her dissertation on the effects of case study teaching methods on students’ critical thinking ability regarding agricultural and natural resource issues at the collegiate level. Her hopes are to be able to help better prepare students for the agricultural workforce by providing students with a crucial skill.

To make the move to Florida, she left her DFA job, taking a significant pay cut, so the scholarship from NDSA was much appreciated. “I put that money into an account all its own to use for my textbooks,” she said. “Having to put those extra expenses on a credit card and having to pay interest on that is something I don’t have to worry about thanks to the NDSA scholarship.”

Young was one of 12 scholarship recipients last year and one of the first to receive an award since the program was named

The application deadline for the 2021 Bruce W. Krupke Memorial Scholarships is June 1. To be considered, applicants must be an employee or immediate family of an employee of a current NDSA of NDFA member company and be enrolled for the 2021-2022 academic year as a full-time student with a minimum of 12 credits and a GPA of 2.5 or greater. Student members of NDSA are also eligible. Awards in the amount of $2,500 will be given out to those pursuing a major related to the dairy foods industry or a related agricultural program.

Scholarships of $1,000 will be awarded to students pursuing any major.

New this year, NDSA has opened up eligibility to students pursuing trade school, as a way to promote a more robust workforce, particularly at a time when many of our own members struggle to fill these vital jobs within the dairy industry. Awards of $2,500 are available to trade school students pursuing areas within the industry, and $1,000 scholarships are available to those pursuing any field.

Whether trade school or college-bound, all applications must include a copy of a student’s most recent transcript, one letter of recommendation and proof of enrollment.

Funding for the scholarships comes directly from NDSA events, like the annual clambake/pig roast, member dues and sponsorship for various association events.

Applications are available online at neastda.org and must be received by Tuesday, June 1, 2021. Scholarship winners will be notified by July 15. For more information, contact Leanne Ziemba, office coordinator, at lz@nedairyfoods.org.

NED Magazine | Second Quarter 2021 • 51

Member News

Member and Industry News Chobani became one of the first major food companies to announce a plan to allow employees up to six hours of time to get a COVID-19 vaccine (three hours for each of the two vaccines required, in most cases). The company is hoping to host on-site vaccination clinics to further the effort. “We’re taking our mission to keep people safe one step further today,” said Peter McGuinness, president of Chobani, on LinkedIn. “Our plant employees have been on the front lines of putting food on America’s kitchen table 24/7 during this pandemic.

They’re the heart of our company, and we’ll do whatever we can to protect them.”

With the support of 13 area businesses, Chicago-based The Bigger Table, a nonprofit organization bringing together the food and beverage industry to address hunger, unemployment and inclusive economic development, created and donated 300,000 servings of a delicious low-sugar, high-protein cocoa mix to local food banks and pantries this winter, in an effort to address food insecurity, serve the community and provide warmth during the cold weather months. Partners and donors in this effort included NDFA member Dairy Farmers of America, which donated nearly 9,000 pounds of nonfat dry milk towards this effort.

Flavorchem and Orchidia Fragrances, established leaders in the manufacturing of flavor, ingredient and fragrance solutions, are proud to announce the release of their first annual Sustainability & Corporate Social Responsibility 52 • Northeast Dairy Foods Association, Inc.

Annual Report. The company’s sustainability expansion is a global initiative that follows the highest standards of guidance set forth by three different organizations — EcoVadis, Sedex and the IFRA-IOFI Charter — chosen for their universal recognition, as well as their depth and breadth of experience in flavors and fragrance industries. Flavorchem and Orchidia Fragrances are committed to conducting their business in ways that protect and benefit the environment, their employees, customers, and the global communities where they operate. To request a digital copy of the 2020 Sustainability & Corporate Social Responsibility Annual Report- please email contact@ flavorchem.com.

HP Hood LLC has selected Robbie Lock to be its sustainability manager. The announcement coincided with the celebration of the company’s 175th anniversary with continued growth, innovation and a renewed commitment to sustainability. As part of Hood’s Environmental Health and Safety Team, Lock will focus on optimizing facilities, sourcing responsibility and reducing climate impact in an effort to strengthen the company’s customer relationships and consumer trust. “Sustainability can help future-proof our business and make it more resilient. Being able to effect positive environmental and social change through our operations and supply chain, while providing business value in the process, is a win-win,” said Lock.

Leading food ingredient manufacturer and distributor International Food Products Corporation is proud to

Member News announce the launch of a new brand of products produced at its manufacturing plant, IFPC Aviator. The banner brand Legacy clads the packaging of the propriety manufactured food ingredients blends produced exclusively for IFPC customers.

The first line of Legacy products, named Legacy SWEET, is a complete assortment of sweetener ingredient blends, including sucralose, sugar replacers and sugar reducers. Legacy SEET products are able to be converted into a custom blend made solely for any one of IFPC’s customers’ products.

The American Dairy Association North East has elected two new board members. Audrey Donahoe was elected by her peers on the American Dairy North East board of directors to the position of board president. She replaced Richard Byma, who served nine years as association president. Donahoe has been a member of the board for 20 years. She also serves as the chair of the National Dairy Council. Jeff Raney was re-elected as chair of the Pennsylvania Dairy Promotion Program, which he has served for 12 years and been chair for four. The program is managed by ADA North East. He will also serve as Donahoe’s first vice president.

The Western New York Sustainable Business Roundtable awarded the Board of Directors Choice Award to Perry’s Ice Cream. Congratulations to Gayle Perry Denning, vice president of corporate sustainability and corporate branding, and her team for their sustainability efforts. The SBR recognition program is a continuous improvement program to help businesses reach achievable sustainability targets.

In April, 2,850 partners of Stewart’s Shops received their 2020 Employee Stock Ownership Plan statements. These ESOP accounts received approximately 20% growth and 19% of their 2020 pay. Stewart’s Shop employees now own over 40% of the company through profit sharing. There are now 105 partners with a balance of over $1 million and nearly a third of these millionaires are still actively working. This is possible because of Stewart’s stability, enabling year of double digit percent of pay contributions, plus double-digit growth of balances each year. Stewart’s also share with the communities and customers it serves, proudly donating $7.5 million in contributions to nonprofits each year. In 2020, the company donated an additional $1 million in COVID relief to those in need.

NEW MEMBERS The following new member recently joined Northeast Dairy Foods Association, Inc., or the The Northeast Dairy Suppliers Association, Inc. For more information about the benefits and services available in both the Northeast Dairy Suppliers Association, Inc., and the Northeast Dairy Foods Association, Inc., contact Alex Walsh, associate vice president of regulatory affairs, at 315-452-MILK (6455) or aw@nedairyfoods.org.

C+W SERVICES

111 Roberts Street, Suite D East Hartford, CT 06108 (470) 698-4264 Jordan Patarino, Regional Area Manager jordan.patarino@cwservices.com www.cwservices.com

DAIRY CONVEYOR CORP. 38 Mt. Ebo Road South Brewster, NY 10509 (845) 278-7878 Peter Debald, President pdebalda@dairyconveyor.com www.dairyconveyor.com

JEFFERSON BULK MILK COOPERATIVE 19401 NYS Route 3 Watertown, NY 13601 Summer Zehr, General Manager (315) 783-3655 office@jeffersonbulkmilk.com

CEO Larry Webster of Upstate Niagara Cooperative, Inc., appeared on Buffalo (NY) Business First’s prestigious Power 250 list. This is the ninth annual publication of this respected list of business leaders in Western New York State.

NED Magazine | Second Quarter 2021 • 53

Leanne’s Kitchen

Comfort Food Made with Delicious Dairy Many of our members may know Leanne Ziemba as the executive assistant for the Northeast Dairy Foods Association, Inc., and the Northeast Dairy Food Suppliers, Inc., in our North Syracuse, New York, office. But we’ve discovered she also is queen of the kitchen, as she has some delicious recipes that include fresh, wholesome dairy products. (Some of you may remember the cookie recipe she shared over the holidays!) Here’s another one of her favorites, which she calls The BEST Mac and Cheese.

The BEST Mac and Cheese From the Kitchen of Leanne Ziemba

INGREDIENTS: • 16 oz pasta • 1 tbsp extra virgin olive oil • 6 tbsp butter • 1/3 cup flour • 2 cups whole milk • 2 cups heavy cream • 4 cups extra sharp cheddar shredded • 2 cups Gouda shredded • 1/3 cup Franks Red Hot sauce • Salt and pepper to taste • 1 ½ cups panko breadcrumbs • 4 tbsp butter (for topping) • ¼ cup grated Parmesan cheese 54 • Northeast Dairy Foods Association, Inc.

INSTRUCTIONS:

1. Preheat oven to 350 degrees. Lightly grease large baking dish and set aside.

2. Cook pasta one minute shy of al dente. Remove from heat, drain and place in bowl.

3. Drizzle pasta with olive oil. Stir to coat, and set aside.

4. Melt 6 tbsp butter, and whisk in flour over medium heat. Continue whisking for about one minute until bubbly and golden.

5. Gradually whisk in milk and heavy cream until you see bubbles on the surface. Then, continue whisking for another two minutes.

6. Whisk in salt, pepper and hot sauce.

7. Add 2 cups of cheese at a time, mixing until smooth and all cheese is added.

8. Spread into prepared baking dish.

9. Melt 4 tbsp butter, add breadcrumbs and parmesan cheese and sprinkle over top.

10. Bake until bubbly and golden brown, about 30 minutes.

BusinessTrends

Advice on Financial Decisions During Unprecedented Times

BY ANTHONY J. STEVENS III

J

ust over a year ago, the world turned upside down.

When I started my team at Equitable ten years ago, it never occurred to me that I was signing up to lead a financial services organization through a global pandemic. And, it certainly wasn’t a common point of discussion in my thousands of conversations with business owners throughout my career. Everyone has his or her own recollection of how the pandemic unfolded and how each company reacted.

After hastily setting up an office at home last March, my team and I began reaching out to clients, including dairy association members. At the time, the major stock market indices were down roughly 20%. During the most unprecedented time of our lives, fees and investment returns suddenly seemed immaterial in our clients’ eyes. When speaking with clients about their situations, we found that they were equally concerned about us and our well-being.

Throughout my career, my passion has been working with small businesses to build a healthy financial culture among both executives and employees. As a third-generation business owner in Central New York, my heart broke for the family-owned businesses in my community that were forced to close. Years of working Saturdays with my father enabled me to see beyond the market downturn and focus on the well-being of business owners who were facing the very real possibility of seeing their hard work washed away through no fault of their own. It is this passion that inspires how my team works with our clients.

For example, in 2016, the Department of Labor established new stringent compliance standards and quickly sent their investigators to communities around the country. Very little information was available to help business owners understand

their new responsibilities as fiduciaries of their companies’ retirement plans. My team partnered with our local chamber of commerce and economic development agency, CenterState CEO, and hosted a seminar with the regional director of the U.S. Department of Labor, Mary Rosen, to help shed some light on the expectations of plan sponsors.

Three years ago, we worked with Bruce Krupke to establish a multi-employer plan for the Northeast Dairy members. The idea was to offer a retirement plan sponsored by the association that was affordable, while alleviating the fiduciary burdens of managing the investments of a 401(k) plan. Now, with the addition of 3(16) Fiduciary Services, the plan reduces administrative burdens, as well. My team works with each participating member to provide education and enrollment meetings for their employees. Lastly, Tina Anstett, our ERISA attorney, offers virtual fiduciary training workshops that help plan sponsors understand their responsibilities and the personal risk associated with managing your plan.

We welcome the opportunity to provide a complimentary evaluation and benchmarking of your plan to determine if the associations’ 401k plan is a fit for your business. Please feel free to reach out to me at anthony.stevens@equitable with any questions.

Anthony J. Stevens III is a vice president and financial consultant for Equitable Advisors in Syracuse, New York.

NED Magazine | Second Quarter 2021 • 55

BusinessTrends

Keep Up-to-Date on the Latest Trends, Issues Impacting Your Company’s Insurance

BY LISA BOLDUC

A

s we discuss various trends in this issue of Northeast Dairy magazine, it seems appropriate to look at what you might expect in the vital area of insurance. Insurance, after all, is one of a company’s largest line items. Varying opinions and experiences with brokers, claims, services, insurance carriers. etc., is cause for buyer unrest. Businesses have some autonomy over insurance costs through selecting an optimal program structure, deductibles and claim mitigation techniques. On the contrary, there is little to no control over the insurance marketplace.

The data presented below was summarized from the 2021 Q1 Brown & Brown Market Report. Bear in mind that attachment points, rates and coverage requirements are subject to change quarterly. Catastrophic losses, rate inadequacy, underinsurance and reinsurance costs are key contributors to market trends.

PROPERTY

Property carriers will increase rates and deductibles, reduce limit capacity, enforce coverage restrictions and narrow appetite. The majority of policies are adding a Communicable Disease Exclusion or something similar in response to COVID19. Type of property and protection in place will play a role in renewals. For example, the traditional Ag space is expecting a higher increase based on property losses in that segment. This is partially due to older buildings with less fire protection.

A proactive approach will have a direct impact on the financial outcome of marketing. Use these to minimize the effects of the market trend: • Current asset valuations • Completed Business Interruption worksheets • Comprehensive submission information, including updated COPE (Construction Occupancy Protection Exposure) and safety programs.

56 • Northeast Dairy Foods Association, Inc.

COVID-19 AND BUSINESS INTERRUPTION

The beginning of Q2 2020 marked a milestone in my career and all of our lives. I received calls from most of my clients experiencing a significant disruption in their operations.

A virus, pollution or contamination is not a covered peril in most property policies.

As of Dec. 21, 2020, more than 1,400 COVID-19 suits have been filed against insurers. The claimants have been unsuccessful in all but one, in a North Carolina court in favor of a chain of restaurants. The industry is responding to address the future risk of pandemics. Insurance professionals tend towards the ideal that a government program will be created, similar to the terrorism program that began after 9/11.

CASUALTY

Casualty lines have upward rate pressure and capacity restrictions and data supports that position. The National Law Journal published the Top 100 Verdicts ranked by gross jury awards, illustrating staggering increases in values awarded. Product liability leads with an increase of $5.7 billion from 2018 to 2019 totaling $11.6 billion. Motor vehicle verdicts are the third leading category at $2.1 billion. The industry is unable to absorb verdicts of that dimension without adapting.

Distracted driving, driver fatigue, speed and negligent entrustment were directly correlated with settlements.

Negligent entrustment is an argument used during litigation that usually leads to punitive awards. Strategies to reduce lawsuits and financial impacts include: • Use of cameras, as we have experience with claims getting overturned with video evidence • Telematics and license monitoring • Ongoing driver training and selective onboarding Umbrella capacity continues to be limited. In the fourth quarter of 2018, umbrella rates increased by 3.3%. Per the Council of Insurance Agents & Brokers, premium increase is 22.9%.

BusinessTrends EXECUTIVE LIABILITY

This market is experiencing one of the steepest increases in a range of 40% to 100%. There is intensified underwriting pressure in both private and public sectors. Claims related to COVID-19 economic decline will take time to mature.

NASDAQ is developing rules and regulation regarding diversity on the board of directors and will be required for any company that trades on the exchange. #MeToo and Equal Pay Act claims are prevalent claims among the Employment Practice Liability arena. I found it interesting that this line is most affected by culture.

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CYBERSECURITY

Rate increases range anywhere from 20% to 100%. This is one line where increases are correlated with industry type.

Coverage limit capacity is not being decreased, but strict underwriting and supplemental applications will be enforced.

Ransomware, business interruption, social engineering and invoice manipulation are the key drivers of claims. Ransomware and business interruption are the most financially significant that breach primary insurers to reinsurers.

INTERNATIONAL

International casualty programs remain stable due to a competitive marketplace and reduce global litigation. It is a profitable class of business, but company size will impact renewal rates. Middle market will experience flat renewals where large multinational programs are more loss sensitive.

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CLOSING REMARKS

Most business executives don’t view insurance as a revenue driver, and current market reports allude to increasing cost.

What sometimes is overlooked is the intrinsic value that comes with a sound risk management plan. Although paying insurance premiums can be painful, it is a tool to protect a company’s sustainability and growth. A broker is an intermediary between you and the insurance carriers. As a broker, we have a deep understanding of how underwriting and the market functions.

We are your allies and will implement strategies to cushion the effects of the market.

Please reach out to me at lbolduc@bbempirestate.com for quarterly reports and updates. You can also retrieve them online from the CIAB.

Boost your bottom line and brand awareness within the industry.

Contact us today to learn about the opportunities.

Anne DeSantis Relationship Manager anned@nedairymedia.com 315-445-2347

Lisa Bolduc is an account executive, commercial lines, for NDSA member Brown & Brown Insurance Empire State.

NED Magazine | Second Quarter 2021 • 57

photos courtesy of the Chautauqua Harbor Hotel

We hope to see you in person in 2021!

MARK YOUR CALENDARS NOW:

2021 NORTHEAST DAIRY ANNUAL CONVENTION August 18 - 20, 2021 HELD AT THE BEAUTIFUL The Chautauqua Harbor Hotel is 9 acres with a beautiful 1,100 feet of lake frontage where you can relax and enjoy the perfect get away. Bring the family and enjoy the outdoor recreation and water sports, as well as the proximity to wineries and venues like the National Comedy Center.

The convention will once again offer a variety of speakers, vendors, networking and social events. It’s not to be missed.

Watch for more information coming soon.

58 • Northeast Dairy Foods Association, Inc.

Chautauqua Harbor Hotel Celoron, New York www.thechautauquaharborhotel.com

HOSTED BY:

COVID-19 Updates

Are You Counting COVID-19 Bonuses Towards Overtime Calculations?

Employers who rewarded employees during the pandemic may need to revisit certain pay periods.

BY PAUL BANUSKI

S

ince the pandemic began, some employers have been paying their employees bonuses to work during the crisis. However, those same employers are now seeing their good intentions coming back to bite them because of how the Department of Labor is treating those bonus payments when it comes to overtime.

BACKGROUND

Under the federal Fair Labor Standards Act, an employer is required to compensate most employees at not less than one-and-a-half times their regular rate for time worked in excess of 40 hours per week. The regular rate is calculated by taking the employee’s total compensation for the week divided by the total number of hours worked during the week. There are some types of compensation that must be included in the regular rate, including non-discretionary bonus payments. Discretionary bonus payments do not need to be included.

WHAT IS A DISCRETIONARY VERSUS NON-DISCRETIONARY BONUS?

According to the federal Department of Labor, discretionary bonuses are excludable from the regular rate of pay when: • The employer has the sole discretion, until at or near the end of the period that corresponds to the bonus, to determine whether to pay the bonus • The employer has the sole discretion, until at or near the end of the period that corresponds to the bonus, to determine the amount of the bonus • The bonus payment is not made according to any prior contract, agreement or promise causing an employee to expect such payments regularly.

• A non-discretionary bonus is one that fails to meet the statutory requirements of a discretionary bonus. Examples include:

• Bonuses based on a predetermined formula, such as individual or group production bonuses • Bonuses for quality and accuracy of work • Bonuses announced to employees to induce them to work more efficiently • Attendance bonuses • Safety bonuses (e.g., number of days without safety incidents).

WHAT ABOUT COVID-19 RELATED BONUSES?

A recent decision by a Department of Labor auditor found that bonuses employers paid to employees because they worked during the pandemic should be considered non-discretionary and therefore must be included in regular rate calculations for determining overtime.

WHAT DOES THIS MEAN FOR EMPLOYERS?

If your organization paid bonuses to non-exempt employees due to COVID-19 and those employees worked overtime during that period, HR One recommends that you conduct a self-audit to see if there are any additional wages owed to those employees.

If the bonus was a one-time payment, you only need to recalculate the regular rate for that particular pay period and only for those employees who worked overtime during that pay period. If the bonus was recurring, you will need to recalculate the regular rate for each pay period in which you paid it.

Paul Banuski is a human resource consultant for HR One, a full-service payroll and human resource consulting firm. For more information, call the company’s Helpline at 1-800-457-8829.

This article was used with permission from HR One.

NED Magazine | Second Quarter 2021 • 59

ADVERTISERS’ INDEX Agri-Mark ����������������������������������������������������������������������������������������������������������������������� 27 Agri-Services ������������������������������������������������������������������������������������������������������������������ 23 Altium Packaging ���������������������������������������������������������������������������������������������������������� IFC Atlas Automation ������������������������������������������������������������������������������������������������������������ 43 Comairco ������������������������������������������������������������������������������������������������������������������������ 39 Evergreen ������������������������������������������������������������������������������������������������������������������������41 Farm Credit East. ������������������������������������������������������������������������������������������������������������11 H.S. Crocker ������������������������������������������������������������������������������������������������������������������� 25 Klockner Pentaplast ���������������������������������������������������������������������������������������������������������� 5 Nelson-Jameson ������������������������������������������������������������������������������������������������������������� 4 The Probst Group ���������������������������������������������������������������������������������������������������������� 23 Tremcar �����������������������������������������������������������������������������������������������������������������������IBC Westrock ����������������������������������������������������������������������������������������������������������������������BC

Join the Dairy Industry Associations A full service trade association representing dairy processors, manufacturers and distributors since 1928.

nedairyfoods.org

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A supplier and vendor member association dedicated to the growth and Magazi ne of No rtheast Dair y Pr oc essors, Manufac advancement of The the dairy food industry in the northeast. Established in 1932.

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