ECONOMIC OUTLOOK

ECONOMIC OUTLOOK AS 2022 Ends, Many Uncertainties Make Predicting 2023 Challenging

BY GARY LATTA

The annual inflation rate for the U.S. is 8.2% for the 12 months ending September 2022 after rising 8.3% previously, according to U.S. Labor Department data published Oct. 13. The next inflation update is scheduled for release on Nov. 10 (as of this writing) and more upward adjustments are expected as the U.S. Federal Reserve tries to reign in red hot inflation. Inflation in Europe is currently 9.1%, the highest on record, as the cost of energy for filling cars, heating and other uses ravages its economy.

The U.S. Federal Reserve and the European Central Bank continue to announce rate hikes as they attempt to reign in economic activity. The war in Ukraine continues to stress global energy markets exacerbated by Russia’s decision to halt gas supplies to Europe through the Nord Stream pipeline. Europe had become reliant on Russia for much of its energy and is now facing a real threat of natural gas shortages as winter approaches. Discussions are now taking place in Europe to consider gas cap options and energy rationing. No longer getting supplies from Russia, Europe is buying oil and natural gas from the U.S., which increases energy prices here at home. NEW RECORDS OF U.S. DAIRY CONSUMPTION

Good news was released in early October that Americans are consuming dairy products at a rate that is achieving new records. The USDA’s Economic Research Service data shows per capita consumption of dairy grew by 12.4 pounds over the previous year. This continues a 50-year growth trend that began in 1975 when the USDA started tracking annual consumption of dairy products. Average U.S. per capita dairy consumption was 667 pounds on a milkfat basis in 2021 compared to 539 pounds in 1975 when the USDA began tracking this data. The products showing the most impressive growth are cheese, butter and yogurt.

In just the last ten years, U.S. per capita consumption of cheese rose 13%, butter is up 18% and yogurt is up 2%. Year 2021 was up 4% over the past five years, up 9% over the past 15 years and up 19% over the past 30 years. It is clear that Americans love their dairy products,

U.S. $ PER POUND

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CME Weekly Average Cash Grade AA Butter Prices

11/11/2022 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 2018 2019 2020 2021 2022

and demand appears to be holding up quite well despite the current inflationary environment.

FOOD, ENERGY CONTRIBUTING TO THE LARGEST OVERALL RISE IN PRICES

In mid-October, the U.S. Bureau of Labor Statistics Division of Consumer Prices and Price Indexes released its September 2022 results. The Consumer Price Index is a measure of the average change over time in the prices paid by consumers for a market basket of consumer goods and services. The CPI reflects spending patterns and rose 0.1% in August and 0.4% in September. During the past 12 months, the index for all items increased 8.2% with food among of the largest contributors to the overall rise. The September figures were tempered down a bit because gasoline prices dipped for a short while. Gasoline is again on the rise following the Saudis announcement that they will not be increasing oil production anytime soon. The energy index has climbed 19.8% over the 12-month period from September 2021 to September this year. Within this energy index we see the gasoline index up 18.2%, the electricity index up 15.5%, the natural gas index up 33.1%, and the fuel oil index up a whopping 58.1%. Diesel prices are even higher than gasoline prices. AAA reports that diesel prices have increased by 50% since this time last year to $5.324 per gallon in October, following an all-time high of $5.816 per gallon in June. According to the Energy Information Administration (eia), the U.S. has only enough diesel to last for 25 days because its stockpiles are “unacceptably low.”

The food at home index has climbed 13% over the last 12 months, September 2021 to September 2022. Over the same 12-month period, the index for cereals and bakery increased 16.2%, with dairy and related products rising 15.9%. Other grocery store items like eggs, poultry, fish, and meats show increases between 9% and 15.7%.

BUTTER AND MARGARINE TOP THE CHARTS

In the dairy aisle, few items have increased more than butter and margarine. Margarine prices have jumped by 44% in the last 12 months from September 2021 to 2022. Butter prices have risen 27% over the same period. One must wonder if high margarine prices are helping to drive consumers to butter. Most of the margarine increase is attributable to poor weather and the war in Ukraine. Soy, palm, sunflower and rapeseed are the oils used to make margarine. A severe drought in Canada has led to a 35% reduction in rapeseed plant production used to make canola oil. Canada is the world’s largest exporter of canola oil. Butter prices have escalated due to a tight market globally. New Zealand, Australia and the EU have seen sharp drops in milk production that has led to a drop in butter production. High global butter prices have driven U.S. butter exports to help fill the gaps, thus tightening inventories here and keeping domestic prices high. With lower stocks and higher exports, U.S. consumers can expect higher butter prices heading into the holidays. Butter prices at the Chicago Mercantile Exchange have risen to $3.20 a pound. Cheese manufacturers must compete with butter manufacturers for

Source: USDA - National Agricultural Statistics Service - Charts and Maps - Butter: Cold Storage Stocks by Month and Year, US

available milk supplies, and, with butter prices so high, cheese makers could be at a procurement disadvantage. If so, it would serve to support higher cheese prices throughout the holiday seasons.

U.S. CONSUMERS MAKE GROCERY BUYING ADJUSTMENTS

Food and beverage analyst Emily Moquin with the Industry Intelligence Team recently reported observations on how U.S. consumers have been adjusting their grocery buying habits during these high prices and inflationary times. She points out that consumers’ concerns over the cost of dairy have escalated the most, up 10 percentage points in her surveys. Dairy’s 15.9% category price growth is one of the steepest increases of any food category. According to her surveys, 82% of shoppers say they, at least sometimes, now try to save money on groceries at the store. In the past, consumers have compared prices or purchased generic brands. However, recently, a growing number of consumers are simply choosing to buy less. She wonders if reduced demand from consumers limiting purchases will serve to help bring prices back down. So far, dairy sales have held up quite well despite higher retail prices. U.S. DAIRY EXPORTS NEAR 20%

Though high, U.S dairy prices have trended below most global competitors. This, plus the fact that global competitors simply do not have enough product, have driven U.S. exports. U. S. dairy exports are now approaching 18-20% of national production. Many believe the U.S. is poised to become the dominant dairy player in global export sales in the near future. Historically, the EU has been the world’s top exporter. Recently, crippling energy costs, labor expenses, feed costs, fertilizer costs, weather, and environmental compliance are squeezing the EU’s ability to maintain its milk production. Some believe EU milk production and dairy manufacturing may retract to the point of just serving its domestic market.

U.S. dairy exports are up about 7% from a year ago. Cheese exports are playing a large part in keeping CME prices above $2 a pound heading into the holidays. While cheddar production has been down around 2%, exports are up near 11.5%. Butter exports are now up a whopping 116%. Whey exports are up almost 30%, attributable to sales in China as their hog industry rebounds and whey is used in feed. Nonfat dry milk and skim milk powder exports have been down by 17%, but exports of whole milk powder are up just over 51%. According to the U.S. Dairy Export Council, much of this year’s increase in U.S. dairy exports have been to Mexico, Central America, the Caribbean and China.

CANADA’S USMCA COMMITMENT?

We have heard little regarding the second U.S. challenge to Canada on meeting their USMCA dairy commitments. The U.S. is again challenging Canada’s allocation measures of dairy tariff rate quota that are manipulated to restrict access to eligible applicants. Eligible applicants would be retailers, foodservice distributors, and the like. The U.S. prevailed in its first challenge, but Canada has so far refused to comply. U.S. Trade Representative Katherine Tai, USDA Secretary Vilsack, members of Congress, the USDEC and several industry trade groups have expressed outrage, calling for the levy of tariffs against Canada.

HAPPENINGS ON CAPITOL HILL

Congressional Hearings leading up to the 2023 Farm Bill have begun within both the House Agriculture Committee and the Senate Committee on Agriculture, Nutrition & Forestry. Some members of Congress have been holding meetings and listening sessions with district constituents. The American Farm Bureau Federation recently issued its 2023 Farm Bill priorities outlining its support of principles to be used as a guide for development of the various programs in the new bill. Among its dairy priorities are additional transparency to milk checks, modified block voting flexibility, eliminating the “no” vote on referendums resulting in the elimination of milk orders, retaining the Dairy Margin Coverage program and opposing legislation that would eliminate flavored

milk in schools. Details and more information on their priorities regarding dairy and other segments of agriculture can be found on the American Farm Bureau Federation website at fb.org.

Discussions of Federal Milk Marketing Order modernization have formally begun with a forum hosted by the American Farm Bureau Federation in October in Kansas City, Missouri. The three-day event kicked off USDA Secretary Tom Vilsack’s wish that the dairy community get together and work on ideas that will galvanize the industry before any hearings. Early reports of this forum are positive, and participants appeared to favor maintaining the milk marketing order system with some modifications and improvements. The last major reform took place over two decades ago, and much has been learned since then that can be used to help make the system better. Participants believe that USDA hearings to address Federal Milk Marketing Orders will take place in 2023.

In late September, New York’s Sen. Kirsten Gillibrand, chair of the Senate Agriculture Subcommittee on Livestock, Dairy and Poultry, held a video press conference calling for the U.S. Government Accountability Office to evaluate the workability of the federal milk pricing system. Gillibrand claimed the system leaves many of New York state’s small and mid-size farms at risk of adequate pay. This recent request of a GAO evaluation follows Gillibrand’s legislation named the Dairy Pricing Opportunity Act that she introduced last year claiming it would help pave the way for reforming and modernizing federal milk pricing. More information on Gillibrand’s letter to the GAO and the Dairy Pricing Opportunity Act can be found on her Congressional website at www.gillibrand.senate.gov/.

On Sept. 6, the New York Farm

Milk Production

ISSN: 1949-1557

Released October 20, 2022, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA).

September Milk Production up 1.6 Percent

Milk production in the 24 major States during September totaled 17.5 billion pounds, up 1.6 percent from September 2021. August revised production, at 18.2 billion pounds, was up 1.8 percent from August 2021. The August revision represented an increase of 13 million pounds or 0.1 percent from last month's preliminary production estimate.

Production per cow in the 24 major States averaged 1,961 pounds for September, 26 pounds above September 2021.

The number of milk cows on farms in the 24 major States was 8.93 million head, 19,000 head more than September 2021, but 2,000 head less than August 2022.

July-September Milk Production up 1.2 Percent

Milk production in the United States during the July - September quarter totaled 56.5 billion pounds, up 1.2 percent from the July - September quarter last year.

The average number of milk cows in the United States during the quarter was 9.41 million head, unchanged from the April - June quarter, but 29,000 head less than the same period last year.

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Laborers Wage Board voted 2 to 1 in favor of submitting its recommendation for a 40-hour overtime threshold. The recommendation has a 10-year phase-in period where the threshold is to be reduced four hours every two years. Phase-in would begin January 2024 until the 40-hour threshold is met in 2032. On Sept. 30, the recommendation was accepted by New York State Labor Commissioner Roberta Reardon. Farmers would be reimbursed from the state treasury for the overtime portion of the labor expense. The State Division of Budget estimates this overtime expense credit to be $184 million between 2024 through 2027. Once fully implemented in 2032, the annual cost of the state reimbursement will be around $153 million. For some, the commissioner’s decision is touted as a victory for farm workers. On the other hand, it is seen as a threat to the future of family farms in New York. Further, the decision will jeopardize the ability of New York’s processors and manufactures to compete in the regional, national and international marketplace. Farmers, manufacturers and supporting agribusinesses have made enormous financial investments in New

Chart 2. 12-month percent change in CPI for All Urban Consumers (CPI-U), not seasonally adjusted, Sep. 2021 - Sep. 2022

Percent change 10

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Table A. Percent changes in CPI for All Urban Consumers (CPI-U): U.S. city average

York over decades—a fact likely not considered in the recommendation. In late October, Cornell University released a new report, How New York Farmers Adapted to New Farm Labor Overtime Requirements. The report highlights the 1 Not seasonally adjusted. challenges farms face with a 60-hour overtime threshold and reducing it to 40-hours will be arduous. The full report is available at the Cornell University College of Agriculture and Life Sciences website at https://cals.cornell.edu/.

MILK PRODUCTION IMPACTED

Milk production growth has been constrained in 2022 by the high cost of feed, fertilizer, labor, energy, drought, inflation and rising interest rates. Dairy farms have been cautious and somewhat hesitant to expand despite high milk prices. The USDA’s October Milk Production report shows negative month-to-month growth from January to May, no change in June, and then inching up July through September. September 2022 milk production among the top 24 major states was up 1.6% compared to the same month last year. It appears the turning point was sometime after June. Could high prices finally be encouraging some cautious expansion on the part of - 2 producers?

September’s milk production per cow in the 24 major states was reported up 26 pounds from the same month last year. The number of milk cows on farms in the 24 major states was up 19,000 head from September last year, but 2,000 head less than August 2022. September milk production within the 24 major states was New York up 2.2%, Vermont no change and Pennsylvania down 0.1%.

Considering the latest expansion trends, the USDA’s forecast made in October, elevated the average number of cows by 5,000 head and increased the annual production per cow to 24,110 pounds. It is expecting a brisker rate of expansion in late 2022. With more cows and more production per cow, the USDA increased its expectation of 2022 milk production by 0.4 billion pounds up to 226.9 billion pounds.

Higher export volume is anticipated for the rest of the year. U.S. products are expected to remain price competitive in the global marketplace and robust demand from other countries should persist for the remainder of 2022 and into 2023. The 2022 forecast price for cheese

was raised 3 cents to $2.10 and butter raised 3 cents to $2.88. The2022 forecast for nonfat dry milk was left unchanged at $1.69 per pound, and dry whey was lowered a tiny bit to 60 cents per pound.

Using these new product forecasts, the USDA estimates 2022 Class III milk to be $21.90 per hundredweight. This is an increase of 25 cents from its forecast issued in September. The 2022 forecast for Class IV milk was increased 15 cents to $24.60 per cwt. The 2022 all-milk price forecast was raised 15 cents to $25.60 per cwt.

For 2023, the USDA uses much of the same logic. Exports should remain brisk. More milk cows are anticipated and output per cow will increase. The USDA is likely factoring in the probability that high milk prices will eventually encourage more milk production. For 2023, the average number of milk cows was increased 10,000 head and milk per cow adjusted up by 20 pounds to 24,320 pounds. Annual milk production for 2023 was raised 0.4 billion pounds to 229.2 billion pounds.

The 2023 forecast for cheese was raised 1.5 cents to $1.98 per pound, and butter raised 5.5 cents to $2.44 per pound. The 2023 forecast for dry whey was left unchanged at 48 cents per pound, and nonfat dry milk was reduced one cent to $1.49 per pound.

With higher cheese prices and steady whey prices in 2023, the Class III forecast has been increased 10 cents to $19.80 per cwt. The Class IV price forecast was also raised 15 cents to $21 per cwt. With these adjustments, the 2023 all-milk price was raised 20 cents to $22.90 per cwt.

The all-milk price forecast for 2023 is $2.70 per cwt less than 2022, but $4.37 per cwt above 2021. An abundance of variables currently in play make forecasting a challenge, including weather events, inflation, rising interest rates, high input costs, labor issues, war, CPI MILK, FRESH, WHOLE, FORTIFIED, PER GAL. (3.8 LIT) IN U.S. CITY AVERAGE

Source: U.S. BUREAU OF LABOR STATISTICS

energy, legislation and uncertainty. Exports and domestic demand are expected to remain favorable which should support higher milk prices for the remainder of 2022 and into 2023. The 2023 all-milk price forecast of $22.90 is $2.70 below the $25.60 anticipated for 2022, but $4.37 higher than the $18.53 received in 2021.

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.

25100 200 30 50 45 The Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association would like to congratulate members who have celebrated milestone anniversaries this year. Our members are celebrating as many as 130 years in business in 2022! And we applaud all for keeping our industry growing and doing their parts to keep putting delicious, quality dairy products on tables throughout the Northeast and beyond. The information on the following pages was submitted by members who responded to the questionnaire we put out over the past few months. Even if you didn’t choose to participate, we wish every one A Tried and True Commitment to the Dairy Industry of our members celebrating a milestone in 2022 a round of applause for their accomplishments and contributions to the dairy industry.

NELSON-JAMESON: 75 YEARS

“Since 1947, Nelson-Jameson has focused on one thing – ensuring food businesses have the supplies and support they need to produce quality products efficiently and profitably,” said Mike Rindy, president.

Nelson-Jameson celebrates 75 years in 2022 of sourcing everything from equipment and cleaning chemicals to ingredients and food packaging for the food, dairy and beverage industry. The company represents over 850 vendors and distributes over 55,000 products in categories that include processing and flow control, safety, sanitation and janitorial, production and material handling, building and facility maintenance, laboratory and QA/QC and packaging and ingredients.

In 1947, Nelson-Jameson was established in a vacant cheese factory in Toluca, Illinois by Earl Nelson and

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his father, Ted, along with partners Herb Jameson and Bob Dougherty. Their intent was to create a dairy equipment and supply business that would serve as a comprehensive resource for dairy plants. However, the partners soon realized that Illinois was not the best location. So, Ted Nelson and Jameson poured over dairy production maps and made the decision to move the business to Marshfield, Wisconsin — the heart of dairy. Soon after, Jameson and Dougherty left to pursue other business opportunities, leaving the company in the hands of the Nelsons.

Today, the Nelson family is celebrating four generations of its family business. Currently, Adam Nelson is the chairman of the board, and Amanda Nelson Sasse is director of e-commerce. Ann-Marie Nelson Brine is a minority owner, functioning as the secretary of both of the company’s advisory board and board of directors. In 2022, Mike Rindy joined the company as president with more than 30 years of experience in the food and dairy industry.

Today, the company’s tagline — “Your Safe, Quality Food Is Our Business” has probably never rung more true. Nelson-Jameson has been working closely with each customer to understand individual needs and provide “quality, consistent products that keep a laser focus on food safety. Customers have an increased focus on environmental and biological testing, sampling supplies, sanitation products and supplies, processing items, material handling products and cleaning chemicals.

From building a color-coded program to prevent cross contamination to establishing strong environmental monitoring programs, Nelson-Jameson has long been committed to continuous improvement by engaging with researchers, regulators, professional organizations, suppliers and

other experts in the industry. Not only does the company help customers incorporate these best practices into plants, it also provides additional information through workshops, learning resources and trials.

“We are committed to providing a bridge of communication and understanding between our customers and suppliers that brings a firm grasp of the challenges and best practices that contribute to ensuring a safe food supply and help our customers navigate and exceed the regulatory expectations out there,” said Rindy.

With this level of commitment, Nelson-Jameson is confident it has the solutions among its 110,000 items from 1,200-plus vendors that are specifically selected to service dairy, food and sanitary processors, as well as farmers and growers. It also prides itself on customer service that provides a one-stop-shopping experience.

Nelson-Jameson prides itself on operating under the Golden Rule (treat others as you’d like to be treated), as is evident through its deep sense of connection within the family, its 200-plus employees and its customers. At Nelson-Jameson fosters real relationships with real people that know the industry, which has been a benefit to the company and everyone it serves.

Nelson-Jameson is thrilled to celebrate 75 years of business success, something it attributes to its employees, customers, supply partners and community.

Nelson-Jameson is a member of the Northeast Dairy Suppliers Association, Inc.

TREMCAR: 60 YEARS

Tremcar is a manufacturer of tank trailers and tank trucks for the North American market. Its production output includes stainless steel and aluminum tanks. It also specializes in manufacturing vacuum tanks dedicated to cleaning the environment: sanitary sewer, hydro excavation, vacuum sump and other specialized tanks. Tremcar’s expertise in is the ability to custom make what the customer needs. The company has production plants in the U.S., and Tremcar International exports to Latin America, the Caribbean and as far away as Argentina.

Tremcar was founded in 1962 by the Tougas brothers, Aldé and Léo, under the name of A & L Tougas Ltd. The two brothers were welders by trade. The business specialized in the fabrication of stainless steel tankers trailers dedicated to the transportation of milk between the farms and the dairies of Québec.

Over the next two decades the business grew with the expansion of the dairy industry in Quebec. A & L Tougas revamped its production to keep up with the evolution of bulk milk transport. The company evolved fast from building its first milk truck in 1962 to building i’s first tank trailer in 1964. Soon, the company began to build larger tank trailers which were needed to meet the transportation needs of the dairy farms of Eastern Canada and New England.

In 1989, the Tremblay family acquired A & L Tougas and changed its name to Tremcar. The long-term mission was to maintain – but also improve – the company’s hard-earned reputation for excellence and product quality. To achieve this goal, Tremcar had to restructure work procedure to optimize production. Several employees were able to witness and participate in the company’s evolution and assure its growth. This was carried out in accordance with the values of the company. At the end of the 1980s, the business’s annual sales was about $3 million.

When A & L Tougas was bought by Jacques Tremblay in the late 1980s, the company only had a few dozen employees. Today, Tremcar has a team of over 500 employees to meet the needs of its customers across America. Specializing

in the manufacture of aluminum and stainless steel tank trailers, it continues a good growth curve. Since its inception, Tremcar has placed great importance on the needs and wants of its customers and employees. The former take advantage of the versatile knowledge of each person within the company in order to manufacture custom-made tank trailers that meet their exact needs.

Facility workers are often encouraged to acquire new knowledge and progress in their careers. “We work hard to promote the expertise of our employees. It is common to see them gain in know-how and climb the ladder to become important executives, for example,” said Daniel Tremblay.

He first joined his father’s company in 1992, while pursuing graduate studies in economics before occupying several positions that led him to the title of president in 2005. His passion, his years of experience in manufacturing and his university studies in economics allowed him to make strategic decisions that benefit both customers and employees.

When A&L Tougas was acquired, one of the company’s first goal was to expand distribution. Over the years, it has acquired several other companies. Tremcar started buying companies that were struggling in the tank market. The first was Technova.

As the company is always in search of development, its acquisition of Technova in May 1992, was carried out with the aim of obtaining greater expertise in the production of tanks intended for the transport of chemical products. This company will be renamed Tremcar Drummond.

Each of these acquisitions has improved Tremcar’s expertise in stainless steel and aluminum products and the expansion of its facilities provided space for optimization and perfection of their manufacturing products and processes. The Tremblay family seized the opportunity to invest with buyouts and invest in upgrades whenever funds permitted.

Tremcar now operates manufacturing plants in Strasburg, Ohio, Haverhill, MA, Montreal, Saint-Jean-sur-Richelieu and Saint Césaire in Quebec, and in London, Ontario. It has service centers in Strasburg, OH, Haverhill, MA, SaintJean-sur Richelieu, QC, London, On, Saskatoon, SK and Edmonton, AB. The company has dealers that offer aftersales service in Wisconsin, Michigan, New Jersey, Pennsylvania, Texas and Costa Rica. Tremcar employs more than 500 workers across North America. Today, the company’s annual sales have skyrocketed to $160 million.

Throughout 2022 and 2023 Tremcar has and will organize events to celebrate 60 years with customers and employees across North America. Officially incorporated on Oct. 24, 1962, every occasion to celebrate before and after is welcomed!

Building tanks for milk hauler has been the primary industry for Tremcar since 1962. The company organized special events with the Milk Haulers in Lubbock, Texas, for example, inviting them to Montreal last July. In September, the company organized a golf tournament and an open house where all employees, family members and the community were invited. Events will continue through December and into the beginning of 2023 with special edition clothing (ball caps, hoodies, T-Shirts and polos) especially fabricated for the 60 years!

Tremcar is a member of the Northeast Dairy Suppliers Association, Inc.

HERBEIN + COMPANY, INC.: 50 YEARS

The Herbein story began in 1972, at its founder, Carl Herbein’s, kitchen table in Fleetwood, Pennsylvania. The firm later expanded and moved to a location near Reading, Pennsylvania, before moving to its current location in Wyomissing, Pennsylvania in 2006. Today, the firm has 11 locations and more than 250 team members. After Carl Herbein’s death in 2018, Managing Partner Mike Rowley handed the baton to the current managing partner, David Stonesifer, in 2019.

But, while Herbein has grown over the years, the important things haven’t changed. The firm has grown from humble beginning to become a leading CPA advisory firm and is closing in on becoming one of the 100 largest CPA firms in the country.

“For our team, it’s all about entering new markets, expanding our value proposition, re-envisioning what we do for our clients – and being bold and innovative at the same time,” said Stonesifer. “While we look ahead, learning from our past is how we are thriving today and building our tomorrow. And, as we

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Northeast Dairy magazine Tremcar USA, is always looking for Strasburg, OH Member and Industry News.

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

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evolve, some things will stay the same.”

Herbein is committed to putting clients at the center of everything it does, creating an outstanding experience for every team member and doing everything it can to build an exceptional team member experience and make the places where we live and work stronger.

One specific way Herbein is achieving these goals is adapting for long-term success by bringing new teams into its family. In 2022 alone, it joined forced with to CPA firms – Cappelletti, Pinter & Company and the LaMastra Group, as well as Ohio-based Watterson &. Associates, an organizational psychology firm. These mergers come on the heels of two key combinations in 2021 when Herbein joined with CPA firm Tubiello-Harr & Associates and Mosteller + Associates, the area’s most comprehensive HR solutions partner. The company also expanded internationally for the first time with an October 2022 opening of a new office in the Philippines.

The Herbein teams are collaborating “on all cylinders” as it endeavors to provide a seamless experience for its clients, while also understanding that work needs to hold greater meaning today than ever before.

“In the third year of the pandemic, the war for talent is on, with more people reconsidering where they work and how they work,” said Melissa Rebholz, director of human relations. “We’re committed to providing our team with a renewed and revised sense of purpose in their work, social and interpersonal connections with colleagues and managers, as well as a sense of shared identity.”

“Our HR team has been outstanding in its conversations with our people, as we strive to understand what keeps them here with us,” added Managing Partner David Stonesifer. “And, as a result, we continue to do exceptionally well in maintaining team continuity, which, in turn, allows us to maintain high client service.”

Maintaining that high client service has required two operating tracks for the firms – building on its traditional business and seeking opportunities in new services and geographies with more innovation, integration and breaking down of silos to redefine relationships. The company. Has also continued to make progress in areas of diversity and inclusion and has taken meaningful action to support its commitment through Horizon, its’ firmwide DEIA initiative.

As the firm continues to look towards the future it does so with an expectation that goes beyond compliance with its clients, as the industry is moving more towards advisory services. It intends to focus on anticipating and responding to these needs and drive mutual growth through advisory services that are relevant to today’s business environment.

In recognition of 50 years in business, Herbein celebrated in a number of ways. Team members outlined their favorite moments on its intranet, and the firm recently. Published a commemorative book that examined these shared experiences. Key moments are being shared on social media, as well. And, in October, the firm gathered for a three-day retreat. Herbein has also hosted several client events to express its gratitude for the trust they place in the firm. In addition, Herbein created a “50 for 50” program, which, at first, intended to donated $50,000 to nonprofit organizations. The response was so overwhelming, however, that the firm upped the program to over $76,000 to ensure that every submission received some level of support. And, finally, Herbein refreshed its brand identity and website as a nod to its 50th anniversary and a demonstration of its strength and stability.

“Our incredibly talented team members have done so much to set our firm up for our next 50 years. In 2022, Herbein continues to create even greater value for our team, our clients and our community,” said Stonesifer. “We are confident in our strategic direction and believe our purpose-led approach will help clients thrive and communities prosper for years to come. As Herbein looks ahead to our next half century, our entrepreneurial spirit drive us forward.”

Herbein is a member of the Northeast Dairy Suppliers Association, Inc.

RWS DESIGN AND CONTROLS: 20 YEARS

In 2002, Dave Smith, Mike Rehberg and Ed Wirth formed RWS Design and Controls. The trio had worked together at Dean Foods and decided to strike out on their own, forming what was initially started as a controls and instrumentation company. Then, in 2004, Greg Graves joined as a fourth principal of the company, having also worked with the others at Dean Foods.

In the years that followed, the company has transformed into a nationally recognized, full-service process integration firm, with a specialty in ESL, UHT, aseptic processing and automation. RWS works primarily in the food, dairy and beverage industries and is proudly celebrating its 20th anniversary this year!

“The company started in Machesney Park, Illinois, in the basement of a home converted to office space and, from those humble beginnings, RWS now employs almost 100 people,” said Dave Scherr, national sales manager for RWS Design & Controls. “From the receiving bays of a dairy plant to the fillers, we design, furnish, install and automate all that goes into this space. We also take complete responsibility for turnkey projects that sometimes include civil work and filling equipment.”

And, if that’s not enough, RWS can provide the spare parts and a host of maintenance and repair services for their customers, courtesy of a staff of some of the most seasoned, professional, knowledgeable and experienced personnel in the dairy process industry.

“There is tremendous flexibility and professional expertise in our portfolio, including a unique ability to do our own process control and automation,” added Scherr.

That portfolio is comprehensive, indeed. RWS Design and Controls sells

stand-alone equipment from industry leading OEMs, plus engineered and automated process systems. It also offers a large selection of modular skidded systems and UL listed control panels, fabricated within its 60,000-square-foot headquarters and manufacturing facility in Roscoe, Illinois (It underwent an impressive expansion last summer, adding additional office, conference and training space).

“We provide and install sanitary process equipment, plus offer the engineering, design, automation, spare parts and maintenance support,” said Scherr.

The company offers nationwide coverage, utilizing three project teams. Each team is led by an owner of the company and is staffed with process, project, automation, commissioning engineers, installation crews, administrative, management and direct sales support.

“We work very closely with customers who may have one or multiple plants within a region or nationally. We find this team approach to be very effective for providing exceptional, world-class service to our customers across the country,” said Scherr. “Many of our best customers, have relied on RWS expertise and services since its inception. This is because we take great pride in these long-standing relationships and always take on their challenges as our own.”

As a result, new customers rarely remain new for long.

“The thing that differentiates us is our commitment to offering our customer a great deal of flexibility in how they rely on RWS in helping their cause,” said Scherr. “We utilize our extensive expertise in dairy process to offer our customers a broad range of equipment, systems and services, while consistently focusing our mission on great quality work and genuine customer delight. I think that’s our claim to fame. Once we are introduced into a new company, we rarely don’t get invited back, and at the same time, we are laser focused on providing our new and loyal customers with the absolute best service our company can offer.”

That deep concern for customer satisfaction is also reflected in the company’s culture.

“We consistently focus on recruiting the best our industry has available and are always on the lookout for adding to our staff in many different disciplines,” said Scherr. “The culture that I am privileged to work amongst is extremely focused, dedicated and technically brilliant in dairy processing; surely some of the best the industry has to offer, who are outstanding at what they do. An impressive number of staff within our organization have been with RWS for the long term. The culture is evolving a bit as the company grows, adding both entry level and professional staff throughout the organization continuously to provide our customers with a level of service they can always rely on with confidence.”

As RWS celebrates its 20th anniversary this year and looks to the future, it remains committed to providing the dairy industry with reliable expertise in the design, supply, fabrication installation, automation and support of sanitary process equipment and systems.

RWS is a member of the Northeast Dairy Suppliers Association, Inc.