Northeast Dairy Magazine | Q3 2019 by NortheastDairyMag

TRENDS: What’s Drawing Consumers Back to the Dairy Case?

WHAT’S NEW?

Cheese Wedding Cakes

Third Quarter 2019

MEMBER PROFILE

Stewart’s Shops

NDSA

Scholarship Winners

LEGAL

CBD in Food

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contents

Third Quarter • Fall 2019 • Volume 2, No. 3

FEATURES

DRAWING CONSUMERS BACK TO THE DAIRY CASE 24 FRONT DESK 04

PRESIDENT’S MESSAGE: NDFA Guest Author: FirstHand Look at Trends

BY MICHAEL YOUNG

PRESIDENT’S MESSAGE: NDSA Great Networking Opps

BY OZZIE ORSILLO

EXECUTIVE VP MESSAGE Tastes and Reasons Are Shifting

BY BRUCE W. KRUPKE

LEGISLATIVE REPORT Our Elected Officials Have Adjourned

BY BRUCE W. KRUPKE

ECONOMIC REPORT Dairy Prices Inch Upward Towards 2020

BY GARY LATTA

FOOD TRENDS: Reinventing the Old, Venturing into the New

BY CAROLINE K. REFF

Nutritious Dog Treats

Yea or Nay? Would You Try These?

MilkPEP Marketing Opportunities

Cheese Wedding Cake

Let’s Have a Snack

Camel’s Milk

Veggies in Your Frozen Yogurt?

Goat’s Milk: A Niche Market

Ethnic Flavors

Grab-and-go Backlash

USDA: Products Have Changed

Why Dairy-Free?

Cheese: Never Forget Taste Reigns

BY DONNA BERRY

READ ALL ABOUT IT! 41

MEMBER PROFILE Stewart’s Shops

NDSA Scholarships

BY CAROLINE K. REFF

WORKPLACE TOOLS OF THE TRADE 46

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

“Other” Alternatives Experience Growth

STAY CONNECTED

www.neastda.org

ilking Your Intellectual M Property Rights

Include Your Insurance Professional

BY EMILY BILLIG, CYNTHIA SANDERS & WENDY YOVIENE

BY LISA BOLDUC & STEPHEN MESSINA

uture of Trademarking F Cannabis

OSHA Update: Common Safety Audit Findings

BY EMILY BILLIG, CYNTHIA SANDERS & WENDY YOVIENE

Sexual Harassment Enforcement

BY PAUL BANUSKI

BY STEPHEN VALENTINE

NED Magazine | Third Quarter 2019 • 1

contents

Third Quarter • Fall 2019 • Volume 2, No. 3

NORTHEAST DAIRY FOODS ASSOCIATION, INC. EXECUTIVE VICE PRESIDENT

Bruce W. Krupke

EXECUTIVE ASSISTANT

Leanne Ziemba

DIRECTOR OF MEMBERSHIP AND COMMUNICATIONS

Alex Walsh PRESIDENT

Mike Suever HP Hood, LLC

VICE PRESIDENT

Daniel R. Lausch Lactalis America Groups, Inc. TREASURER

Michael P. Young Guida’s Dairy SECRETARY

Rick Sedotto Midland Farms

NORTHEAST DAIRY SUPPLIERS ASSOCIATION, INC. PRESIDENT

TREASURER

VICE PRESIDENT

SECRETARY

Ozzie Orsillo Evergreen Packaging Co.

ASSOCIATION UPDATES 56

Member & Industry News

New Members

IN THE INDUSTRY 58

Dairy May Aid Anxiety

t. Albans Merges S with DFA

Canada to Reduce Plastic

FDA Encourages Tweens

2019 Northeast Dairy Convention

Bill Elliott Northeast Great Dane

Melissa Fryer Alfa Laval Ryan Osterhout KCO Resource Management

NORTHEAST DAIRY MAGAZINE TEAM EXECUTIVE EDITOR

Bruce W. Krupke bk@nedairyfoods.org PUBLISHER/DIRECTOR OF SALES

Bill Brod billbrod@nedairymedia.com EDITOR

Caroline K. Reff creff@nedairymedia.com CREATIVE DIRECTOR

Robin Barnes robinb@datakey.org

CONTRIBUTORS

Paul Banuski, Donna Berry, Emily Billig, Lisa Bolduc, Gary Latta, Stephen Messina, Cynthia Sanders, Stephen Valentine, Wendy Yoviene, Michael Young 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 bk@nedairyfoods.org.

GRAPHIC DESIGNER

Greg Minix

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 © 2019 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 bk@nedairyfoods.org.

2 • Northeast Dairy Foods Association, Inc.

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

nedairyfoods.org

WINTER

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.

neastda.org

NED Magazine | Third Quarter 2019 â&#x20AC;˘ 3

EDIT

turers t

FrontDesk

A First-Hand Look at Consumer Trends from Locally Sourced to Nutrition in our Schools BY MICHAEL YOUNG

(Editor’s note: This quarter’s President’s Message is being guest authored by Michael Young, treasurer of the board of directors of the Northeast Dairy Foods Association and president of Guida’s Dairy of New Britain, Connecticut, a subsidiary of Dairy Farmers of America.)

s Treasurer for the Northeast Dairy Foods Association, I help Bruce Krupke and Leanne Ziemba manage the finances and budget. The association has been a great opportunity to collaborate with other industry professionals. I’m very happy to be part of the executive board of directors, helping to set policy and direction for the association’s activities. I’m also pleased to be able to share some thoughts with you on the focus of this issue — consumer trends. This gave me the opportunity to consider a few different areas that Guida’s, and the dairy industry as a whole, is dealing with and focusing on currently. One topic of dairy product trends and what consumers want is the concept or definition of the term “local” and a better understanding of where their food is sourced. Today’s consumers are looking for local foods that they can count on and know support their local economies. However, each state has its own definition of “local,” and this is creating a dilemma for our industry in terms of labeling and marketing our products to satisfy this need. In addition, the federal government also has a different definition of the term local. For example, the Connecticut Grown program requires that raw product come from no further than ten miles away from its border. Alternately, many federal government programs that support local foods generally define local as the total distance that the product is transported as being less than 400 miles from its origin. Obviously, these discrepancies need to be resolved so that our industry will be able to accurately 4 • Northeast Dairy Foods Association, Inc.

Low and behold, now full-fat products are back. Medical professionals have shown that the body processes dairy fat well, and consumers have taken the opportunity to add higher fat content products into their diets. — MICHAEL YOUNG

reflect its local origins and ensure this labeling is consistent and fair for all parties. Decades ago, dairy was one of the first major categories of food to provide low-fat alternatives. As nutritionists pushed low-fat foods, our industry complied, and these items soon became everyday staples. Lo and behold, now full-fat products are back. Medical professionals have shown that the body processes dairy fat well, and consumers have taken the opportunity to add higher fat content products into their diets.

FrontDesk

They are rediscovering the reasons whole milk is good for you, as it contains very important nutrients, including protein and vitamins and minerals (such as calcium, vitamin D and potassium). We see this with higher sales of whole milk, up around 3% nationally. However, our low-fat products are paying the price with some segments down as much as 14%. Other industry trends that have been noted are consumers gravitating towards products that are high in protein. Dairy items such as cottage cheese have come back into fashion due largely to its protein content. In addition, consumers want low sugar options in the products they buy today. Our industry’s message on chocolate milk as a replenisher after exercise has struck a chord among activity-minded consumers, and the result has been several years of strong growth in our chocolate milk retail sales. There are opportunities to sell more flavored milk, as well. Our sister plant, Oakhurst Dairy in Portland, Maine, has developed a new milk flavor, wild blueberry. Even with the added sugar due to flavoring, milk is still a quality product. For every 3 grams of carbohydrates, milk provides a gram of protein — a winner in consumers’ eyes and stomachs. Another significant topic in our industry today is the use of the word “milk” in plant-based beverages. It is confusing to consumers to allow such terms as almond “milk” to be used when the product doesn’t contain any dairy. The FDA needs to decide soon whether non-dairy beverages can use the word milk, which will not only help our industry comply but will properly inform consumers what they are truly purchasing. Our company is developing some new hybrids made up of dairy milk and plant-based beverages under our Live Real Brand to meet consumer demands. These include milk and almonds, and milk and oats, both providing a unique taste experience. They are now being tested in Minnesota, hopefully to positive reviews. Marketing to specific consumer segments is also challenging for the industry today. For example, our marketing and product development teams spend considerable time evaluating what products will be on trend for Millennials. This age group ac-

cesses information and makes decisions using technology on a larger scale than previous generations, so communicating our product category to Millennials is important and necessary. This market segment also values convenience, and buying over the internet is the norm. While this presents a challenge for our products, due to their perishable nature, at the very least we need to give Millennials access to our products’ nutritional makeup, sourcing information and product benefits. The nutrition trend continues in our school milk programs. Milk is, without a doubt, the most nutritious beverage available for children and young adults and is supported by the National School Lunch nutrition standards. Our organization is a strong provider in the school milk market within our service territories, and we will continue to support efforts to educate school children about nutrition and the value of dairy products in a healthy, well balanced diet. We have recently seen an increase in the sale of fluid milk and dairy products to food service providers both directly and through distributors. These channels of distribution provide for efficient sales and more economic choices of the specific products that restaurants and other food service institutions require. Our goal is to find the most cost-effective approach to serving these and all our customers and is an on-going evaluation process by our distribution team. Finally, we are seeing continued brand loyalty. As a regional brand, Guida’s is proving that “fresh” and “local” really mean something to consumers in milk and cream. This has been the result of strong collaboration with key market retailers and the commitment of our consumers in supporting their local dairy. Locally branded milk like Guida’s provides consumers with confidence the product is of good consistent quality. They like seeing the milk they consumed in schools as children still available now that they are adults. As an industry, are we positioned well for the future? Absolutely. We need to continue to meet consumers’ demands, adjust and find our selling point, which is quality and nutrition. We also need to remind consumers that they don’t need to look for substitutes — we are the real thing! NED Magazine | Third Quarter 2019 • 5

FrontDesk

Annual Events, Upcoming Tour Make for Great Networking Opportunities for NDSA, NDFA and PAMD BY OZZIE ORSILLO, PRESIDENT, NORTHEAST DAIRY SUPPLIERS ASSOCIATION .

ello all: As you read this letter, we will be in the midst of our annual conference in historic Cooperstown, New York, with our close friends and colleagues of the Northeast Dairy Foods Association and the Pennsylvania Association of Milk Dealers. If you didn’t have the chance to attend our conference this year, I strongly suggest you make plans to attend in 2020. This event provides insight into regional, national and global dairy industry trends and challenges that may be helpful to you as you plan for the future. In addition, so many of the decision makers from the companies that make up the Northeast Dairy Foods Association and the Pennsylvania Association of Milk Dealers attend this event, making for an outstanding networking opportunity for us all. Visit our website, www.neastda.org, for soon-tobe-announced details on next year’s conference, so you can mark your calendars. In July, we had a great day at our annual clambake. This year, we held the event at a new venue, the Spinning Wheel Event Center in Syracuse, New York, where more than 900 of us had the opportunity to relax, network, engage in some healthy competitions and, of course, enjoy delicious food and drink. Adding to this successful event was our annual golf outing at Rouge’s Roost Golf Club in Bridgeport, New York. We welcomed more than 230 golfers this year on two 18-hole courses. Mark your 2020 calendar now for the second Wednesday of the month, July 8, 2020, to meet us on the green and then on to a delicious feast. We look forward to seeing you there! We’re not just about fun and games, however. We got down to some serious business, choosing the recipients of the Northeast Dairy Suppliers Association scholarships for college students. This year, we awarded $15,000 in scholarships (see article on page 44). We are excited to offer these 6 • Northeast Dairy Foods Association, Inc.

We are excited to offer these scholarships to all the NDFA, PAMD and NDSA members and their families, as we support the future of the dairy industry. scholarships to all the NDFA, PAMD and NDSA members and their families, as we support the future of the dairy industry, as well as the advancement of education as a whole. Scholarship applications for 2020 will be posted on our website after the first of the year, so keep an eye out. Each year, the field of applicants is growing and becoming more competitive, so we encourage eligible college students to apply by the deadline and showcase their accomplishments, academic success and other talents and goals. Up next is our fall tour. Sites are still being considered, but this year is sure to please. This is a great event for our NDSA members, as we plan to tour a regional manufacturing facility to get an up-close look at how food products

Maximize are made and meet our host management team. A date and further details will soon be posted on our website, so check it out soon, Finally, is you’re an NDSA member who likes attending events, networking with others and making a difference in the future of our industry, keep in mind that we are always looking for quality people interested in joining our board of directors. If you wish to be considered for a voluntary position on our board, please contact Alex Walsh, director of communications and membership, at aw@nedairyfoods.org, or Leanne Ziemba, administrative assistant, at lz@nedairyfoods. org for more information. In closing, I’d like to express a special thanks to the Northeast Dairy Foods Association and the Pennsylvania Association of Milk Dealers, as well as our own members. We appreciate all of you for the trust you have in us to support your dairy industry and the genuine people who work so diligently to make it all come together. We look forward to seeing you all very soon.

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 editor@nedairymedia.com.

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Consumers Want our Products, but Tastes and Reasons to Consume Are Shifting BY BRUCE W. KRUPKE, EXECUTIVE VICE PRESIDENT, NORTHEAST DAIRY FOODS ASSOCIATION, INC.

n this issue, we are bringing to you the topic and focus of dairy product and consumer trends. It is one of the most important topics we could write about and is one of the favorites of our readers. We all can’t get enough of this topic because if you can stay upto-date on what consumers are looking for, you can be more competitive. If you are not paying attention, then you will get left behind. The dairy industry is extremely competitive. Why? Because Americans really like dairy products in all their forms. There are still a lot of companies across our nation willing to bring the products to market. This is good for our industry — the more competition the better. We are all consuming more — BRUCE dairy products each year, but not in the same form we did a few decades ago. The hard part in this business is to be at the front of the consumer demand wave and know what people really want as soon as possible. Do they want to drink and consume fluid milk? The answer is still yes, to the tune of about 17 gallons per capita annually. As we all know, milk consumption has decreased a great deal over the past four decades for many reasons, but if you were to ask any start-up beverage company if it would like to have

17 gallons consumed by every person in the country, its leadership would do double back flips. So, can milk in its present form survive? I think so, for many reasons. First, it is truly a good product — nutritionally, taste-wise and versatility of use. It is ubiquitous. You can find it just about everywhere in our country, fresh, cold and priced right. Are we fighting an uphill battle? Yes, but I think it is still one worth fighting for. I learned a long time ago, if you have a quality product, in the end you can win. If you look at cheese consumption over the past three decades, you find that if there is one product Americans want, it is cheese! Just about every year, the consumption per capita has set new records. How much cheese do you think we each consume W. KRUPKE every year? The answer is about 37 pounds, each — man, woman and child. We eat it in many forms and styles, with other foods, as a topping, as an ingredient, in all types of ethnic variety foods and meals. We just can’t seem to get enough of it, as many of the articles in this issue will explain in detail. We are starting to rev up and export cheese around the world, with expectations in the next year to be up as much as 8%! We have quality products here in the U.S. that others around the world desire and trust.

We are all consuming more dairy products each year, but not in the same form we did a few decades ago. The hard part in this business is to be at the front of the consumer demand wave and know what people really want as soon as possible.

8 • Northeast Dairy Foods Association, Inc.

Read the previous issues of Northeast Dairy Magazine online. NORTH EAS

NORTHEAST DAIRY MAGAZINE

For those of you in the milk and dairy processing and manufacturing business, I think the future is bright for our industry. One reason is demographics — that’s right, demographics. I’ve been reading a book written by Ken Gronbach THE S SKILL entitled Upside. Gronbach is a specialist in understanding the big picture of people flow. He understands what is going on ON T HE ROA D: GAP with population shifts in our country. He reviews where we are moving to and from, why, and most importantly based on N KDOW ages, what we can expect in future purchases from different BREA generations. You might be surprised to learn that it is no longer Baby Boomers who are making the biggest impact influencing trends and extending purchasing power. It is, in fact, Millennials, those born between 1981 and 1996. There are about 83 million of them, compared to 75 million Boomers. The Millennial segment is just starting to work its way through, and they have become the primary buyers and trend-setters. What does this statistic have to do with our industry? I had an email exchange with Gronbach about our industry, and he said, “If I were in the milk business, I’d be very happy. The future looks bright.” The reason for this optimism is simple. Those Millennials are starting families and having babies. What do babies and young school children and families drink? You guessed it, milk, the one quality product that is readily available Most suppliers simply in different packages and forms that are deliver products, economically priced and full of nutrition. We have all the right combinations needed for a product to succeed in fluid milk. We have the raw supply. We have the history, the knowledge of how to make it safely and distribute it to the marketplace. We have institutions and companies that are working on new uses and ways to process it. We have the population, many faithful consumers and the opportunity to Supplier Consolidation Food Industry Expertise introduce all forms of dairy — old and Procurement & Inventory Regulatory Compliance new — to a new, younger generation. The Management future is looking bright, and we need to embrace what we have and forge ahead, namely, a quality, tasty, versatile nutritious 1-800-826-8302 • nelsonjameson.com sales@nelsonjameson.com product that has a bright future. T DAI

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NED Magazine | Third Quarter 2019 • 9

OUR ELECTED HAVE ADJOURNED FOR THE YEAR: What is the Aftermath? Where Does Legislation Stand?

BY BRUCE W. KRUPKE

he legislative sessions of our state Senate and Assembly or House-elected representatives in all Northeast states have adjourned for the year. That is not to say they couldnâ&#x20AC;&#x2122;t come back into session at some point before the end of the year, but, in general, they usually do not unless there is some very specific business to be completed like budgets or social issue demanding their attention. In 2019, there was a lot of activity in all states that demanded our attention. This is partly due to some states electing a majority from the Democratic party, which allowed an opening of the flood gates of issues to be addressed and passed. 10 â&#x20AC;˘ Northeast Dairy Foods Association, Inc.

When lobbying on your behalf, we, the Northeast Dairy Foods Association, have to focus on the laws introduced that could directly affect your business. Not all the introduced legislation could be considered dairy related. In fact, many of the laws are general business issues that could increase the cost of doing business or implement some kind of new regulation you have never had to deal with. When this is the case, we play defense and try to stop or stall the law from being voted on. We do this in many ways, which include personal legislator visits, letter writing, phone calls and the use of public relation strategies. Another way we work an issue is to team up with other allies who might be affected in the same way. These allies come from the retail, agriculture and transportation industries.

Legislative+RegulationsReport The adage, “There is strength in numbers,” is certainly true when lobbying in the halls of government. As a reminder, when we decide which bills to lobby, we are directed by policy that is created by our board of directors. There are three policy provisions we follow: 1. What does the current law state? (We support the law unless the board of directors takes a specific action to amend or change it.) 2. Does the proposed legislation place our members at a competitive disadvantage with other states or countries? If it does, we bring this to the attention of legislators, asking they realize the ramifications of their intended action. 3. Does the topic involve product quality or safety for consumers? This is a principle we hold very dear and take very seriously. These three statements help guide our association’s policy in support or opposition of proposed legislation, current law or regulations. Let’s look at some of the key issues we worked on and the outcomes.

WASHINGTON, D.C. We usually do not lobby issues on a national basis but do so from time to time. One issue, which we have supported since inception, is the new North American Free Trade Agreement. NAFTA was first negotiated during President Bill Clinton’s tenure and honestly opened the trading of dairy products with Mexico and Canada. Those two countries now account for our largest dairy trading partners in the world. They are very important to our industry — from dairy farmer to processor and manufacturer. Under President Donald Trump there has been a new agreement crafted called the USMCA, or United StatesMexico-Canada Agreement. The USMCA, once finalized after much intense negotiations between the three countries, was approved by the respective presidents or prime ministers of each country. Once this had been completed, there were still the necessary steps of having each of the country’s governments or

NED Magazine | Third Quarter 2019 • 11

Legislative+RegulationsReport

legislatures approve the agreements, as well. To date, only Mexico’s government body representatives have approved USMCA. Canada is having elections in October, and the topic is being footballed around in the political arena. Here in the United States, the process is currently being held up in the House of Representatives controlled by the Democratic Party and Speaker Nancy Pelosi. Pelosi and her party are requesting amendments to the agreement, which focus on human rights and other similar controls. For our domestic dairy industry, passage of the USMCA would be a good thing. It is not a panacea or end all for our industry, but it does allow the continuation of many of the trade agreements contained in the old NAFTA and does implement some new small changes that would be positive for our industry. Some of these include increasing the percentage of dairy products that could be shipped to Canada before higher tariffs are imposed. It also recognizes a mandate for Canada to remove a Class 7 definition that was introduced entirely to lock out the distribution of milk powders and concentrates from our country. The Class 7 product definition in Canada used for those products effectively undercuts the prices of our domestic ones. This puts our manufacturers at a price disadvantage with those offered in Canada, thus eliminating most of the trade of those products in Canada. The dollar value of those products sold by our companies from the U.S. to Canada was more than $125 million per year. This represented a valuable piece of business and milk production on farms. With the passage of the USMCA, we will see continued and better trading of dairy products with our biggest partners, which will allow us to compete on more level ground. We highly encourage you to support passage here in the U.S., and let your congressional representatives know about your support. We are also supporting immigration reform. Dairy farms and some plants in the Northeast will hire workers from other countries. These farms especially rely on seasonal, H2A and migrant workers to do the work necessary. Domestic workers are in short supply, and many farms legally employ workers from Mexico, the Dominican Republic, Guatemala and some South American countries. To date, there has been a lot of discussion but no real action taken to reform any migrant worker laws. We are continuing our support of HR832 sponsored by House Rep. Glenn Thompson (R-PA) and Agriculture Chairman Collin Peterson (D-MN), which is called the Whole Milk for 12 • Northeast Dairy Foods Association, Inc.

Healthy Kids Act of 2019. This act would amend the Richard B. Russell National School Lunch Act to allow schools that participate in the lunch program under such act to serve whole milk.The sponsors recognize the nutritional importance whole milk plays for growing children and teenager’s well-being. To date, this bill has not passed.

BREAKING IT DOWN: STATE-BY-STATE I’ll summarize the most important topics and bills we are working on by state and indicate whether or not our association supports or opposes them. CONNECTICUT Members of the Committee on Children have introduced a bill that would eliminate flavored milk from children’s meals in restaurants. House Bill 7006 states, “An act to prohibit restaurants from including soft drink beverages on children’s menus and in children’s meals.” Our association opposed this bill. The way the bill is written disallows flavored milk in these meals. Specifically, the bill states, “On and after Jan. 1, 2020, no beverage listed or displayed on a children’s menu shall be a beverage other than water, sparkling water, flavored water with no added sweeteners, unflavored milk or a non-dairy milk alternative.” This bill was not passed this year, but it can be taken up again in 2020. A bill we support that was introduced into General Assembly is Bill 727, an act restoring funding for the dairy sustainability fund. Our association is supporting this legislation, as it allows for continue funding for a program that assists dairy farm operations. MAINE The state of Maine, like New York, was on a tear, as well. With a new Democratic governor, Janet Mills, the legislature was free to move issues forward that had been given little attention or vetoed under its past Republican governor. We reported in our last issue the introduction of Bill LD 292, which would allow for donations to be made to local food banks, bypassing the state’s minimum pricing system. This bill exempts from the Maine Milk Commission’s minimum price requirements donations of fresh milk by a dealer

Legislative+RegulationsReport

or producer-dealer to an incorporated nonprofit organization established for the purpose of reducing hunger and increasing food security. This bill was passed and will be signed into law by the governor. A bill in Maine that we are lobbying against is LD 102. Beginning Jan. 1, 2020, this bill would prohibit a manufacturer from selling, offering for sale or distributing for sale in the state a single-use plastic beverage container unless the container is composed of at least 15% postconsumer recycled plastic. We are happy to report this bill has been “laid aside” and will not be considered. The bill sponsor, Rep. Victoria Doudera (D) has re-considered the legislation, opting for more future input. MASSACHUSETTS Massachusetts has introduced an interesting bill, H207, that would allow for studies to be conducted on the impact of minimum pricing laws. Since the dairy industry is mandated by the federal government under the USDA’s Federal Milk Marketing Orders to pay dairy farmers a minimum price, the law, if passed, would examine the effects of this program. Our association is not in opposition to this law, which was not passed in 2019.

Other dairy legislation introduced includes two similar bills that we are opposing, which also did not pass in 2019. The first is one that has been introduced in the past few years without much success. S480 would allow for the sale of raw milk to cow share program participants to be sold through a third party distributor under contract with the dairy farm distributing the raw milk. Our association opposes these types of bills for the primary reason that raw milk can be very dangerous to consume, as it has not been pasteurized. We strongly feel raw milk sales direct to consumers should not be allowed. There are two other bills to bring to your attention that did not pass in 2019. H2837 would create and require deposits on certain non-carbonated beverage containers. Another similar bill, H2859, would impose a recycling fee on beverages sold in beverage containers. Although milk and dairy products are excluded from these bills, our members sell many other types of products that would qualify. These types of bills, although well-meaning, only create more red tape, increased taxes and higher costs for consumers. Our association is opposing these bills. (continued on next page) NED Magazine | Third Quarter 2019 • 13

Legislative+RegulationsReport NEW HAMPSHIRE There is only one piece of legislation our association is monitoring that has been introduced in the Granite State — HB 476, an act replacing the Milk Producer’s Emergency Relief Fund with the Dairy Premium Fund. Our association is not in support of this legislation primarily because it will allow an unfair competitive advantage for milk processors doing business there. This legislation was passed and is expected to be signed into law by Gov. Chris Sununu. The bill creates a new program to promote “Made in New Hampshire” processed fluid milk products. The state would mandate any product voluntarily participating to affix a seal identifying it as “Dairy Premium Program milk products.” The law will establish a price at which these products can be sold with profits to be returned to the state for distribution to New Hampshire dairy producers, as well as some funds going to support a promotional campaign for the program. It is our expectation the law as written will not generate any activity or money to return to the dairy farmers in New Hampshire. Our association has reached out to New Hampshire Agriculture Commissioner Shawn Jasper to meet and review the bill and consider amendments in 2020, which might help increase participation. NEW JERSEY The Garden State legislature has been very active on many of the same social, business and dairy issues as other states. The following dairy-related legislation we are monitoring have not moved out of their respective committees or been passed in 2019: • A2977 removes milk weight licensing mandates (Oppose) • A4325 requires the Department of Agriculture to provide for electronic submittal of milk dealer license applications (Support) • A502 permits the sale of raw milk under certain conditions and establishes a raw milk permit program (Oppose) • S403 authorizes use of retail coupons for purchase of milk by consumers (Support) • SJR116 recognizes the last week of June as Dairy Week (Support) NEW YORK The Empire State Democratic party legislators who control all branches of state government basically had a field day this year. Unfortunately for our industry, 14 • Northeast Dairy Foods Association, Inc.

what happened in New York state this session was the most disappointing. There were 20 major new laws passed in the state, some directly affecting businesses and corporation’s future competitiveness. Starting with a piece of legislation called the Farm Workers Fair Labor Practices Act, S2837/A2750. Our association, in conjunction with many other allies, did our best to thwart this legislation from passing. We created an opposition group called GrowNYFarms.com, but our best efforts were not good enough. Led by New York City-area Sen. Jessica Ramos (D), the legislation was approved and recently signed into law by Gov. Andrew Cuomo. Set to go into effect Jan. 1, the law’s basic premise includes mandatory overtime paid after 60 hours of work for all farm workers; permits collective bargaining and forces 24 hours of rest/day off each week. Most disconcerting was the last-minute amendment of the law to include creating a three-entity oversight board comprised of the New York State Department of Labor; AFL-CIO and New York Farm Bureau. This board will have the ability to adjust and set regulations as they pertain to the law. One example will be the option to determine if the 60 hours designated for overtime is enough. Of the three entities, two have already expressed an interest in setting those number of hours lower in the future. Unfortunately, this board will have the power to control the law, without true legislative oversight, or what we call the power to control without elected representation. There were two other bills passed that I think will have a dramatic competitive effect on businesses located in New York State, as well as on all residents. These bills were known as The New York State Climate Leadership and Consumer Protection Act and The Climate and Consumer Protection Act. The passage of these bills almost went unnoticed compared to others but with a greater potential impact for New Yorkers. In general, the bills would adopt measures to put the state on a path to reduce statewide greenhouse gas emissions by 85% by the year 2050 and net zero emissions in all sectors of the economy. The biggest problem will be how will gasoline, diesel, natural gas, propane and even woodburning stoves be replaced? The availability of a sufficient quantity of electricity in this state is not even close to being enough to keep plants running, homes heated and trucks on the road. This legislation was passed before any answers to these questions were discussed, much less decided. The ramifications are real; the implementation of this law over the next 30 years will have a detrimental effect on business, commerce and costs of doing business in this state.

Legislative+RegulationsReport On a good note, one piece of legislation we opposed was not passed. It is referred to as the Single Payer Health Care Act or The New York Health Act. Northeast Dairy Foods Association, Inc., opposes this legislation, A5428 & S3577, which would create a government run “single payer” health care system that would replace New York’s current system of health coverage. The single payer system would be financed by a mandatory new payroll tax on both employers and employees, as well as new taxes on other income, such as interest and capital gains. One reason I believe the law didn’t pass was that there was already too much on the plate of the Democratic Party during 2019. I do believe it will be given more attention in 2020, as it is an election year. The New York Health Act would result in the largest state tax increase in the history of the U.S. An independent study conducted by the RAND Corporation found that the legislation

will require at least $210 billion in new taxes when fully implemented. RAND did not include the cost of long-term care benefits, which requires an additional $42.7 billion in taxes. This is three times more than what New York state currently collects ($76 Billion) to pay for everything from schools to roads and bridges. Although proponents of single payer healthcare systems like the New York Health Act like to say there would be “Medicare for All,” Medicare allows people to choose a health plan and purchase additional coverage if desired. Under this legislation, New Yorkers would not have any choice in their healthcare coverage; the only option available would be the government-run single payer system. The Senate already has 32 sponsors, the minimum to pass it in its chamber. Signatures are still being collected in the Assembly and are expected to be enough to pass the bill. (continued on next page)

NED Magazine | Third Quarter 2019 • 15

Legislative+RegulationsReport

RHODE ISLAND The Ocean State’s dairy industry is very small by comparison to all others in the Northeast. Here is a list of bills we lobbied, which were not passed and held in committee in 2019: • S0407 exempts the producers of certain milk and milk product produced for personal consumption from the inspection requirements of the milk sanitation code. This legislation would remove restrictions from farm inspection laws to allow herd sharing for the purpose of selling unpasteurized raw milk (Oppose) • S0418 creates a tax on sugary drinks and creates a dedicated revenue source for programs designed to benefit public health (Oppose) • H5427 creates the Healthy Beverage Act, which would require that children’s meals offered by restaurants include certain healthy beverage options if the beverage is automatically included in the meal. (Oppose) • S0421 entitles dairy farms to the exemptions from taxation granted to farmland, forestland or open space (Support) 16 • Northeast Dairy Foods Association, Inc.

VERMONT The Vermont legislature has been extremely busy with issues that affect all businesses, including dairy-specific targeted legislation. Some states have been fixated on outlawing the use of plastic grocery bags. Vermont led the way this session with S.113. Gov. Phil Scott signed into law S.113, the bill that bans stores and food establishments from providing single-use plastic carry-out bags at the point of sale and expanded polystyrene beginning July 1, 2020. One of the key observations by the industry has been the fact that switching to paper bags will not be easy, cost effective or do much to “save the environment.” Shipping of paper bags requires seven times the space in trucks, creating more transportation costs and environmental impact. Plus, we recognized years ago that paper bags become wet with condensation from frozen and refrigerated foods, which allows the bottoms to disintegrate — dumping your groceries on the ground. Consumers will soon find out what a major inconvenience this will be in the future.

Legislative+RegulationsReport Another bill, H451, would increase bottle redemption to include more beverages and increase the fee from 5 cents to 10 cents per container. The good news is that the deposits on containers do not apply to any fluid milk beverages, although it would apply to juice and other types of drinks. Our association opposes this bill on the premise that it decreases consumption, is a regressive tax on the poor, affects beverages our processors make and opens the door for milk containers to someday be included. This bill did not move out of committee in 2019. A bill we reported on in our last issue of Northeast Dairy was Senate 141. The concept of this bill would be to enact nutritional requirements for kid’s meals sold at food service locations. Restaurant owners should be free from this kind of government oversight, and parents should choose what kids eat, especially when they are not in school. We have successfully lobbied for skim and 1% milk to be allowed without restrictions to be sold in the meals. The bill would limit calories to no more than 600 per meal, along with sodium, sugar and fat restrictions. Our association opposes this bill, and it did not move out of committee in 2019. Another bill that passed the Assembly is H107, which would create a mandatory paid family leave. This bill did not pass in 2019. There are efforts to make this voluntary, not mandatory. Our association opposed this legislation. Vermont is experiencing a major labor shortage. Business owners point out that the state is crippling its operations by

enacting higher minimum wages and allowing employees to take more time off while companies are not able to find enough workers. This scenario is being played out in many other Northeastern states, as well. We encourage our members to get involved. Let your voice be heard in your state capital! You can easily view the 2019 Bill Introductions Report we’ve discussed in this article on our association’s website in the “Members Only” Legislative Update Section. As a member, you will need a user name and password to view this report. If you haven’t obtained your user name yet, contact our office for access. Visit our website at www.nedairyfoods.org to see all the information your membership provides. You can also request a copy of our lobbying activities and bill report by contacting our office at 315-452-MILK (6455). Thank you for your attention to the important legislation that we, as your association, are monitoring with your best interests in mind. While what’s happening in one state may not be in play in your state, that doesn’t mean it might not one day be the case. It’s important to see what might be on the horizon. As always, thank you for your support, and please don’t hesitate to contact me with your opinions and concerns. Bruce Krupke is the executive vice president of Northeast Dairy Foods Association, Inc.

NED Magazine | Third Quarter 2019 • 17

Economic Outlook

ECONOMIC REPORT Dairy Prices Inch Upward as the Industry Looks Towards 2020

BY GARY LATTA

f one likes or dislikes what is happening in the dairy industry, just stick around. Dairy is always changing. Sometimes for the better; sometimes for the worse. One thing we can say with certainty is dairy is never boring. Much has happened since our last report, and we will look at a few factors that will be shaping the next 18 months. One factor is that U.S. dairy prices continue to inch upward. Domestic dairy sales have been brisk due to a strong economy. While export sales to China remain much lower, both Mexico and Canada have lifted their tariffs on U.S. dairy 18 â&#x20AC;˘ Northeast Dairy Foods Association, Inc.

products. Tariffs from China over the months have weighed heavily on the U.S. dairy industry. Chinese tariffs on U.S. dairy products vary but can be as high as 45%. Recent reports from the U.S. Dairy Export Council reveal that in the 13 months since Chinese tariffs were put in place, U.S. exports to that country have fallen 43%. Cheese sales to China have dropped 45%. Skim milk powder is down 70%, and whey products are down 49%. Whey sales to China would have likely been better if it were not for that countryâ&#x20AC;&#x2122;s outbreak of swine fever. In recent years, Chinese imports of U.S. whey products have been used to supplement

Economic Outlook

swine feeding programs. Despite these issues, annual U.S. dairy exports remain impressive, representing around 15% of the milk supply. U.S. aggressiveness in securing new global dairy export opportunities has been fruitful despite the loss of China and others. U.S. dairy exports set a record of $5.6 billion in 2018 by expanding to new markets, many of them in Southeast Asia. The opportunities to sell more globally are expanding, as the reputation of high-quality and reliable U.S. dairy products are internationally recognized. At this time, the U.S. and China have called a truce to the imposition of any new tariffs. Both countries are sitting down to see if a resolution can be worked out. President Donald Trump and Chinese leader Xi Jinping have directed their staffs to seek solutions to the trade conflict. This effort could take some time.

USMCA AWAITING APPROVAL Meanwhile, the critically important United States-MexicoCanada Agreement has gotten the green light from Mexico, but the legislation is stalling in the Democratic-controlled U.S. House of Representatives and Canadaâ&#x20AC;&#x2122;s Parliament. The proposed USMCA would provide numerous benefits to agriculture, especially the dairy industry. Nearly all U.S. agricultural organizations have expressed their support of USMCA, which modernizes the 25-year old NAFTA. Flaws that Democrats have with the new deal are worker protections, environmental concerns and the extended protection pharmaceutical makers receive with generic drugs. The USMCA outlined between the three North American countries provides tariff-free access for U.S. goods bound for Mexico and for most goods sold into Canada. The Canadian part of the agreement lifts specific barriers for U.S. dairy products, making them more competitive to market into that country. U.S. Trade Representative Robert Lighthizer has recently shifted much of his time from negotiations with China to working on USMCA on Capitol Hill. It is rumored that Lighthizer is well-liked by both Republicans and Democrats.

While progress is being made, many think the process is being dragged out so that it can become more of a political issue in the 2020 elections. Others feel Democratic leader Nancy Pelosi is nearly ready to bring it to the House floor for a vote. One key holdup has apparently been overcome, which should satisfy Democratic concerns. The government of Mexico has approved a comprehensive reform package that assures their workers are treated both fairly and with respect. Trump has repeatedly said that he wants no credit for USMCA and wants this to be a bipartisan piece of legislation. U.S. approval of the new deal could happen at any time, but some observers believe it will not move until the fall.

MILK PRODUCTION GROWTH SLOWS Milk production growth has slowed both in the U.S. and around the world. Several years of lower prices have forced a contraction in the number of farms and milk cows. While growth in production per cow remains on its upward path, higher feed costs and less than optimal weather in much of the country are keeping supplies in check. The USDA reported May milk production down 0.4% from the same month last year. The number of May 2019 milk cows dropped by 89,000 head compared to May of last year, a decrease of nearly 1%. While output per cow continues to expand, the speed of its growth has slowed. Contracting supply means less milk is flowing to manufacturers. Therefore, the buildup of stocks in storage is also slowing. In its latest Dairy Products Report, the USDA revealed May butter production down 4.2%. April butter production was down 4.8%. Human nonfat dry milk production in May was up 5%. American cheese production was up 0.5% in May, while cheddar production was up only 0.2%, and total dry whey down 8.2%. The USDA reported that cheese stocks in cold storage made an unusual counter-seasonal decline in May. This decline of 12.8 million pounds was the first time ending cheese stocks fell from April to May since 2012. (continued on next page) NED Magazine | Third Quarter 2019 â&#x20AC;˘ 19

Economic Outlook

TIGHTENING MILK SUPPLY, RISING PRICES GLOBALLY Other major dairy producing countries around the globe are experiencing similar issues that are contributing to a world tightening of milk supplies and rising prices. The USDA stated in its report, Dairy: World Markets and Trade, that only two out of 44 major milk producing countries, India and Brazil, will likely expand the size of their herds this year. Weather has been less than optimal in many major milk producing countries. There is a severe heat wave in Europe that is taking a toll on production there. Weather in New Zealand has been fair, and milk production is expected to be good but not robust. The ongoing drought in Australia has decimated its dairy industry. Australian dairy feed is scarce and expensive. Dairy Australia recently reported the country’s milk production is down 7.7% from the previous year, and monthly declines are now consistently in double digits. Tightening world milk supplies are contributing to a steady rise in global dairy prices. USDA’s latest Milk Production Report showed the U.S. to be down -0.4% in May. The top 24 states were down -0.1% in May, as well. Note, the USDA has added Georgia to its list of top states, hence the change from 23 to now the top 24. Average production per cow for the top 24 states was up 11 pounds from May 2018, but the number of cows slipped to 55,000 less than May 2018. May milk production in some key states were California (+1.3%), Arizona (-4.3%), Idaho (+1.4%), Texas (+5.4%), Minnesota (-0.2%) and Wisconsin (-0.4%). It is rumored that at least one large herd was added in Texas, hence the large jump in that state’s production.

20 • Northeast Dairy Foods Association, Inc.

Major northeast states milk production for May showed New York at +1.0%, Ohio at -4.4%, Pennsylvania at -7.0% and Vermont flat with no change. Hot summer weather and higher feed costs may keep this trend of slipping milk production moving into the fall. Extremely cool, wet spring weather in many portions of the U.S. delayed planting schedules and has created uncertainty with respect to quality, availability and prices for the remainder of the year. Concerns over wet weather reducing both crop yield and quality have contributed to rising prices of corn, soybeans and alfalfa hay — three key components in dairy feed. Less milk production, lower storage numbers and uncertainty have all been contributing to a slow but steady increase in monthly prices. Chicago Mercantile Exchange cheese block prices began this year at just below $1.40 a pound and have climbed upward to near $1.85 recently. Cheese barrels have also risen but with more gyrations. After slipping a bit, both sizes of cheese are rising in price again at the CME. Whey prices have been falling slow and steady since the beginning of the year. Now, whey appears to be leveling off. The loss of whey export volume to China is a major reason for the price downturn. CME nonfat dry milk prices are significantly higher than they have been for the last four years. The June 2019 average CME nonfat dry milk price was about $1.05, compared to $0.83 for June of last year. The CME butter price has been remarkably steady since the beginning of the year. Butter has been on a slow rise from $2.20 in January to over $2.40 in July. It will be interesting to see how butter prices move over these hot summer months.

Economic Outlook

DAIRY PRODUCTS FARE WELL IN DOMESTIC SALES According to USDA’s July Livestock, Dairy, and Poultry Outlook, the robust U.S. economy is contributing to good domestic sales of dairy products in 2019. Domestic use is helping to both reduce storage stocks and utilize milk supplies. The USDA is expecting domestic use to remain strong for the remainder of 2019 and into next year. USDA dairy forecasts for the remainder of 2019 reveal it expects higher feed costs to reduce output per cow by 10 pounds. Forecasters increased their 2019 estimate for the size of the national milking herd by 5,000 head. The combined effect of these two actions kept overall milk production expectations the same. For 2020, the USDA made no changes to the size of the herd but lowered its forecast for production per cow over concerns that higher expected feed prices will continue. These adjustments reduced the USDA’s 2020 estimate of annual milk production a small amount from its previous month’s forecast. The USDA raised its 2019 cheddar cheese price estimate by $.02 to $1.660 per pound due to strong recent performance and demand. Whey prices were forecast lower due to expected ongoing declines in exports. As a result, the 2019 Class III price estimate was raised from the previous month by $0.15 to $16.05 per hundredweight. The USDA lowered its 2019

butter price estimate by $0.01 to $2.315 per pound, a result of higher expected imports. The nonfat dry milk estimate was raised $0.005 to $1.020 per pound. The combined effect of the butter and nonfat dry milk adjustments raised the 2019 Class IV forecast by $0.05 to $16.45 per hundredweight. Note, the USDA expects the higher nonfat dry milk price to more than offset the lower butter price in 2019. The 2019 all-milk price is now forecast at $18.20 per hundredweight, up $0.20 from the previous month forecast.

LOOKING TOWARDS 2020 For 2020, USDA forecasters expect no change to the size of the U.S. milk herd at 9.355 million head. Higher expected feed prices have decreased estimates of 2020 production per cow to 23,710 pounds. Note, this remains an impressive increase of 345 pounds per cow from the 2019 production per cow average. With no change in cow numbers, but a slight drop in per cow output, 2020 milk production has been reduced 0.1 billion pounds to 221.8 billion pounds. The strong U.S. economy is expected to continue into 2020, contributing in a positive manner to domestic use. Overall exports are forecasted to remain favorable except for whey and butter. Butter exports are decreased primarily NED Magazine | Third Quarter 2019 • 21

Economic Outlook

because world prices are so much lower than the U.S. price. The USDA’s forecast for 2020 cheddar cheese prices is now $1.730 per pound, an increase of $0.005 from the previous forecast. Dry whey was lowered $0.015 to $0.36 per pound due to the expected weakness for exports. As a result of these adjustments to cheese and whey, the 2020 Class III price forecast is unchanged at $16.65 per hundredweight. The 2020 butter price was lowered $0.02 per pound to $2.345 on higher expected imports and lower exports. Little change was made to forecasted nonfat dry milk; therefore the 2020 Class IV price was tweaked lower by $0.10 to $16.75 per hundredweight. The 2020 all-milk price is now expected to be near $18.85 per hundredweight, $0.05 less than last month’s forecast. At this point, it appears USDA forecasts are expecting prices to keep moving upward. The only exception is whey. Class III prices are expected to move from $14.61 22 • Northeast Dairy Foods Association, Inc.

in 2018 to $16.05 in 2019 and to $16.65 in 2020. Class IV prices are expected to move from $14.23 in 2018 to $16.45 in 2019 and to $16.75 in 2020. The all-milk price is expected to move from $ 16.26 in 2018 to $18.20 in 2019 and to $18.85 in 2020. Year 2018 prices are actuals, while 2019 and 2020 are government estimates. Some non-governmental industry observers, including a few in academia, believe the USDA’s estimates are too conservative and that actual prices will prove to be even stronger than forecasted above. 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.

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PROFITABILITY IMPROVEMENT

INDUSTRY REINVENTS THE OLD, VENTURES INTO THE NEW TO DRAW CONSUMERS BACK TO THE DAIRY CASE

BY CAROLINE K. REFF

24 â&#x20AC;¢ Northeast Dairy Foods Association, Inc.

DAIRY TRENDS

eople love to follow trends — fashion, sports, technology and, yes, even dairy. Americans seem to love what’s new, unique or different, and an interesting product on the shelf is sometimes too enticing to pass by. So what’s trending in dairy right now? Northeast Dairy magazine asked one of the experts, Donna Berry, owner of Dairy and Foods Communications, Inc. Her website, www.berryondairy.com, is the place to go to find out what’s new on the shelves or in the minds of consumers. Berry has a degree in food science and worked in product development for Kraft Foods before venturing out on her own to decipher the world of dairy. Interestingly, all of these “trends” are not necessarily new foods or products. Some reflect consumer habits and concerns, as well.

BLENDING DAIRY AND PLANTS Remember the 1980s Reese’s Peanut Butter Cup commercials that claimed, “Hey, you got chocolate in my peanut butter? You got peanut butter in my chocolate.”? Well, what’s old has somehow become new again, but this time it’s plants and dairy. The popularity of plant-based alternatives (e.g., almond “milk”) has remained strong, as many consumers believe that these items are healthier than dairy products. It remains controversial in the dairy industry, as some, like the Northeast Dairy Foods Association leadership, strongly oppose the labeling of plant-based products as “milk” and question the legitimacy of health claims, while others, including some of our members, are adding plant-based items to their product lines in order to tap into consumer purchasing power and counteract the decrease in the sale of cow’s milk and other traditional dairy. A “real game changer” has hit the market, however, in the form of products that blend dairy with plants in various ways, according to Berry. Recently, Dairy Farmers of America released cow’s milk blended with almonds and cow’s milk blended with oats under its Live Real Farms brand. Yogurt maker Chobani has introduced dual component products with yogurt on one side and nut butter on the other, making for a

23% of all consumers seek out foods for their health benefits, and of those more than half are looking for foods that promote digestive health benefits. flavorful mix that consumers seem to like. And both dairy manufacturers and other food producers are coming out with items that combine cheese cubes with apple slices and nuts or fruit with yogurt for dipping. This combination is a way of “keeping dairy foods relevant in more versatile forms,” according to Berry, who added that often these combo items aren’t sold in the dairy case but in the produce section. “Many people say they are avoiding dairy all together these days, so they don’t even venture near the dairy case,” explained Berry. “So combination food items are becoming more high profile. Consumers, at least at first, don’t really think they’re buying dairy products, but soon they see that these combination products are pretty darn good and start thinking, ‘Maybe I should be eating some dairy after all.’”

ADULTS AVOID DAIRY BUT SEEK IT OUT FOR KIDS According to the International Food Informational Council Foundation’s 2019 Food and Health Survey, 23% of all consumers seek out foods for their health benefits, and of those more than half are looking for foods that promote digestive health benefits. The interest in prebiotics and probiotics has continued to rise, as many consumers are convinced that these healthy little bacteria have their benefits. According to Berry, the digestive health movement continues to gain momentum, and there seems to be no signs of stopping, which is a huge opportunity for the dairy industry. In an interesting twist, adults who avoid dairy themselves still believe it provides nutritional value for their kids. This has opened up new markets for products like Dannon’s Danimals, 7 oz. four packs of yogurt full of probiotics and protein aimed at teens and tweens, rather than toddlers. “For the most part, pediatricians emphasize dairy for kids,” said Berry, who expects to continue to see a growing space for NED Magazine | Third Quarter 2019 • 25

DAIRY TRENDS

dairy products aimed at children of all ages. Dairy products that tout nutritional benefits for brain health are increasingly popular, too. Product names like Brainiac Kids couldn’t be more obvious in their intent, as the brand’s whole milk yogurt promotes not only the traditional nutritional elements like calcium and protein, but also nutrients like Omega-3 that claim to boost children’s full potential through brain nutrition. This new “brain food” often comes in forms and flavors that kids are already consuming every day, which makes the transition simple for parents. Expect to see this kind of brain food to cross over into other food categories, as well. Genius, isn’t it?

ADVENTUROUS EATING More and more people are looking for adventurous eating opportunities. Consumers are discovering new foods, new flavors and new uses for dairy products, including the inclusion of ethnic flavors and spice. While some of this has been driven by Millennials, who seem to be particularly adventurous in their food choices, it is also just human nature to say, “Hey, I want to try that!” According to Berry, those 26 • Northeast Dairy Foods Association, Inc.

in the dairy industry that benefit most from this quest for adventure are those who understand the potential success for limited edition products that introduce a unique and exciting flavor but then soon rotate it out for another. This keeps consumers asking for more and wondering what the next curious flavor will be. Ice cream manufacturers, like Northeast Dairy Foods Association member Perry’s Ice Cream, have done a great job of introducing seasonal flavors and this trend can also be found in items like flavored milk, creamers and butter. Maple butter, for example, has seen recent popularity as a seasonal favorite. Consumers are buying it for the maple taste, but, in the end, it’s still butter, so it’s a win-win.

COTTAGE CHEESE, PLEASE? What used to be considered a bland food served on the “diet plate” may be making a comeback. Cottage cheese seems to be popular again based on its nutritional value and modern portability, according to Berry. “It’s a great product and the original high protein food,” she said. But the jury is still out. “Even though there is a lot of innovation in cot-

DAIRY TRENDS

tage cheese, people still aren’t headed to the dairy case in general.” To counteract the shopping habits in the grocery store, retailers are now putting cottage cheese next to the yogurt, not the milk. “It has potential but is still struggling,” said Berry. “People need to get over the ‘diet plate’ perception, but, interestingly, younger consumers don’t make that association and are going in with an open mind about it.” In her blog, Berry noted a recent study where menu developers did research on cottage cheese and noted that Millennials and GenZers were very positive about cottage cheese for its high protein and creaminess. According to a study from Culinary Visions of Chicago, cottage cheese is making a comeback, and many are investing in cottage cheese innovation and marketing the experience of this

long-held dairy staple but with a more contemporary twist. Sixty four percent of those surveyed in the study said they liked the idea of a cottage cheese bar (similar to a salad bar), while others said they would be open to trying cottage cheese-based dips and salad dressings. The re-emergence of cottage cheese is most popular with consumers age 18 to 34, who are primarily interested in adventurous eating (and were less likely to be subjected to too much cottage cheese during their childhoods).

ICE CREAM: TREND OR STAPLE? Whether it’s a trend or a staple, ice cream is BIG, according to Berry, who recently attended the Fancy Food Show in New York City and spent some time visiting ice

NED Magazine | Third Quarter 2019 • 27

DAIRY TRENDS

cream parlors and scoop shops throughout the Big Apple as part of a research initiative through the University of Wisconsin-Madison. “In the past five to seven years, ice cream has become such an important part of the New York City lifestyle,” said Berry, who noted more artisanal flavors, locally sourced ingredients and even alcohol in the frozen favorites. Going out for ice cream has become a destination, as people meet up in everything from corner scoop shops to gourmet food stores for a frozen treat. Across the U.S., consumers see ice cream as an indulgence and expendable calories. “Millennials are all over this trend, as are their kids,” said Berry. GenZers, who are especially health conscious, still want a treat, and they are willing to splurge on it, both in terms of calories and price. This trend is keeping dairy relevant, according to Berry. “People aren’t buying bulk ice cream to keep in their freezers at home anymore, but they will gladly go out for the indulgence of a delicious ice cream cone or sundae.”

CBD There is a lot of conversation around the use of CBD in food. By definition, cannabidiol is an organic compound found in cannabis, otherwise known as marijuana. While there are food and beverage products out there now that claim to contain CBD, the bottom line is that, according to the FDA and the Drug Enforcement Administration, CBD is illegal at the national level, despite some individual states’ laws. It seems, however, that lines are blurred based on interpretation of laws and ingredients, and the result is a lot of confusion. “Dairies all have CBD in their back pockets,” said Berry, noting that there are great possibilities out there. However, she also acknowledges that the dairy industry is both highly conservative and highly regulated, so most likely you won’t be seeing CBD in dairy until it becomes universally legal in the U.S. Berry believes that as soon as CBD does become legal (and chances are it will to at least some degree), “It’s going to be everywhere.” This is definitely one to watch.

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DAIRY TRENDS

MilkPEP Examines Trends That Further Marketing Opportunities for Milk

n July, MilkPEP offered an insightful webinar called Becoming the Modern Marketer, which outlined trends that included the relationship between consumer concerns and purchasing, the impact of the cultural melting pot in the U.S., who’s really driving purchasing decisions and ways to leverage these trends and statistics to make sure that milk remains top-of-mind in a very crowded retail space. Webinar panelists included Victor Zaborsky, vice president of marketing, MilkPEP; Kari Shimmel, chief strategy officer, business development, Campbell Ewald; Tamara Gardellis,

association director of brand & integrated strategy, Campell Ewald; Lauren Hawes, vice president director, strategy, ARC; and Lori Fromm, executive vice president and registered dietitian at Weber Shandwick. According to the webinar panelists, here are just some of the ideas, data and trends that the dairy industry should be leveraging to keep dairy products on the must-have list as we move towards 2020:

THE BROWNING OF AMERICA Cultural trends are having a significant impact, as “this brave new world we live in of constant change

is giving way to a new cultural landscape,” according to MilkPEP. A major factor in this cultural change has been termed “The Browning of America.” According to the Pew Research Center, it is projected that White Americans will be in the minority by 2045. Today, 48% of 6 to 21 year olds are racial or ethnic minorities — something worth paying close attention to as they become the dominant consumers of tomorrow. According to MilkPEP, the implications of this changing cultural landscape means that “milk needs to take a total market approach and reflect diversity in both its product offerings and communication.” NED Magazine | Third Quarter 2019 • 29

DAIRY TRENDS

WHO’S REALLY IN CHARGE? MilkPEP reported that “precocious prepubescents” are no longer willing to leave the grocery shopping up to mom and dad. They are strong advocates for their beliefs, whether that be concerns related to the environment, sustainability, natural ingredients or others, and their parents are keeping these beliefs in mind when they choose one product over another. Sixty percent of GenZers (born between 1997 and 2015) expect brands to take a stand attached to a cause the company believes in and communicate that message through their products. According to a Forbes article cited in the webinar, Calling All Tweens: Brands Begin their Push for Generation Z, “Kids will judge milk not only on what we say, but what we do.” According to MilkPEP, this GenZ trend opens up an opportunity 30 • Northeast Dairy Foods Association, Inc.

“to cement milk’s point of view on issues” as a way to attract customers who hold similar values and views. (As added food for thought, consumers, particularly GenZers, are preoccupied with authenticity and tend to scrutinize the motives of large brands with up to 85% saying authenticity will help determine which brands to support.)

CONSUMERS EXPECT RETAIL TOOLS According to MilkPEP, “Today, the shopper’s journey is intermingled with digital tools that service shoppers and further their demands for the ability to buy anything, anywhere, at any time that is convenient for them.” This means personalizing the shopping experience for consumers with options from hyper-targeted media to in-store recommendations based on previous purchases, all available

through a smartphone or other easyto-access technology. In fact, 75% of consumers say they are more likely to buy from a retailer that recognizes them by name, recommends options based on past purchases and knows a shopper’s purchase history. In addition, consumers have come to expect digitalization of their shopping experience. Consumers want to experience “frictionless retail,” according to MilkPEP, aided by digital tools that satisfy consumer expectations at retail for “seamless interaction from product search, selection, purchase and delivery.”

MORE, PLEASE: AUTO-REPLENISHING Auto-replenishing has become a popular way to attract new customers, and, more importantly, retain customer loyalty. There’s no need to place a new order; the computer does it for you!

DAIRY TRENDS According to MilkPEP, “5% of all U.S. e-commerce transactions will likely consist of some kind of auto-replenish or subscription process by 2025,” and with that comes the expectation of quick and easy delivery right to the consumer’s doorstep. Without a doubt, this is a huge trend that the dairy industry must continue to leverage.

WELL, WELL, WELL According to MilkPEP, “Wellness enthusiasts have taken their health into their own hands.” Consumers are redefining health as “feeling good about themselves” and are looking for complete well-being and “a holistic approach (that) extends far beyond

nutrition to include mental health, stress, sleep and other health-related factors.” In fact, 86% of U.S. adults agree that what they eat impacts physical well-being, while 73% of U.S. adults agree that what they eat impacts emotional well-being. This presents a very important opportunity for milk to continue to be marketed as a product that is made from real ingredients, is nutritious and has a true connection to overall wellness. As an offshoot of the wellness trend, Americans have great interest in getting the proper amount of sleep. According to Weber Shandwick, Wellness Trends, 9% percent of adults and 12% of children consume milk late at night. This data creates an excellent

opportunity to “capitalize on milk’s cross-cultural tradition as a trusted sleep aid and to increase milk occasions and late night consumption,” according to MilkPEP. Whether a consumer — be that adult or a precocious prepubescent — wants retail tools to guide the shopping experience or is looking for a late night snack that won’t interrupt a good night’s sleep, there are many opportunities that the dairy industry should consider in order to guide shoppers back to the dairy case and increase consumption of milk and all dairy products. (Source: Becoming the Modern Marketer, presented by MilkPEP, July 2019)

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NED Magazine | Third Quarter 2019 • 31

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DAIRY TRENDS

32 â&#x20AC;¢ Northeast Dairy Foods Association, Inc.

DAIRY TRENDS

CHEESE TAKES THE CAKE AT WEDDINGS

he cake is surely a focal point at any wedding celebration. From the traditional tiered buttercream frosted cake with cascading roses to the more modern naked cakes sparsely but beautifully decorated with fruit and flowers, each and every wedding cake is as unique as the bride and groom. But have you ever seen a wedding cake that was made almost entirely from wheels of cheese? Believe it or not, wedding cakes made from cheese have carved out a creative niche market. According to Jill Giacomini Basch of Point Reyes Farmstead Cheese Company & The Fork, located in Point Reyes Station, California, cheese wedding cakes (not to be confused with cheesecakes) have become increasingly popular on the west coast, particularly in areas where vineyards and wineries abound and often make the perfect wedding venues. Founded in 2000, Point Reyes is a popular stop on what is referred to as the California cheese trail and is home to the Giacomini Dairy, which has been operated by the family for four generations and supplies fresh Grade A milk daily to the adjacent Point Reyes Farmstead Cheese Company. The property is also home to The Fork, a state-of-the-art kitchen and dining facility offering tours and culinary classes focusing on helping “people better understand and appreciate all that goes into sustainable family farming and artisan cheesemaking.” In addition, The Fork is a popular entertainment venue for private parties, corporate events, and, of course, weddings. Point Reyes has created a number of cakes that can serve as the main wedding cake or — more often — a show stopper at the hors d’oeuvres table. (Yes, the cheese is eventually cut up and consumed by the guests.) Basch believes the trend is a natural extension of the boom in cheese, wine and even craft beer. Customers are adventurous in their requests, as well, selecting Reyes’ own cheese wheels like the popular Toma, which

comes in a variety of specialty flavors. The cheese wedding cakes are then decorated with everything from delicate flowers carved from cheese to grapes, nuts and floral pieces. The result is something wedding guests will never forget. While most cheese wedding cakes aren’t quite as elaborate as the one pictured on page 32, they are conversation pieces to be sure. This particular cake was created by Executive Chef Jennifer Luttrell of The Point Reyes Farmstead Cheese Company & The Fork, along with the company’s photographer and Social Media & Marketing Coordinator Annie Cockroft. It includes the following cheeses (from top to bottom): Cornelia: Point Reyes’ small batch cheese that starts out as a pint-sized wheel of Toma and is shipped to Murray’s Cheese Caves in New York where it undergoes a rind-washing process before moving into the cheese caves to finish aging Bay Blue: Point Reyes’ rustic style blue cheese made with traditional rennet, a beautiful rind, and starts with notes of earthy umami flavor but finishes with the taste of sweet salted caramel Original Blue: Point Reyes’ flagship cheese, this favorite is very creamy and begins with sweet milk notes and finishes with a medium blue mold pungency Toma: This classic table cheese is very creamy and buttery up front but finished with a grassy tang Gouda: Aged for two years, this classic gives a creamy texture with a slightly crystalized pop of complex flavors. In addition, the flowers are created out of Toma cheese, finely grated and made into a twill before being molded into beautiful floral shapes. Certainly, couples don’t have to go all the way to California to order a cake like this one (although they may want to — www.pointreyesecheese.com). Many gourmet cheese shops, caterers and even creameries may be able to create a cheese wedding cake that will surely make any wedding day even more special. NED Magazine | Third Quarter 2019 • 33

DAIRY TRENDS

CAN CONSUMERS GET OVER THE HUMP OF CAMEL’S MILK?

hen most people think of a glass of milk, they assume it comes from a cow. However, a trend toward unique and/ or organic products with the promise of increased nutritional value has created niche markets for other kinds of animal milk — sheep, goats, donkeys and even buffalo. One type of animal milk, however, has been creating some buzz lately, and it comes from a camel. “It’s a big thing among very few people,” said Marlin Troyer, owner and founder of the Camel Milk Association. But, it’s really not that new. Camels are, in fact, the oldest domesticated animals, and people in other parts of the world have been relying on milk from these beasts of burden forever. Troyer operates a herd share program of approximately 40 camels in Michigan. He said his shareholders are a varied group that include “upper middle class parents feeding it to their infants, the extraordinarily wealthy, Hollywood celebrities, people living paycheck-to-paycheck and some who drink it because it reminds them of home.” The FDA has approved camel’s milk for human consumption, but the sale of it is regulated by each state, which is why Troyer can only distribute his product, which is in raw form, to herd share members. His foray into this niche market came from his overall interest in animals and the growing demands for organic products.

34 • Northeast Dairy Foods Association, Inc.

A number of studies suggest camel’s milk has positive health effects for people with diabetes, food allergies, autoimmune diseases and even autism. According to research from The Ohio State University, camel’s milk supplies antioxidants, and regular consumption may improve glycemic control and also lower insulin requirements for those who have diabetes. FDA statistics confirm that camel’s milk contains iron, Vitamin C and is high in protein, while at the same time contains 15% of the daily recommended amount of calcium and only 2 grams of fat in a 3.5 ounce glass. The calories and amount of protein, however, are essentially the same as an equivalent glass of cow’s milk. While camel’s milk is trending in the U.S., it is also scarce, as there just aren’t enough of these animals in this country to meet the demand. In addition, the FDA has put strict limitations on camel’s milk imports. Both of these factors mean that this product can be expensive. Savvy manufacturers in Australia are now looking at ways to market camel’s milk, as that country is home to an enormous population of feral camels — over a million and reproducing rapidly, according to the Australian government. Troyer readily admits that camel’s milk does not pose any significant competition to cow’s milk in the U.S. marketplace. However, despite some obstacles, there is a demand for those looking for organic products, nutritional value or simply the opportunity to try something different.

DAIRY TRENDS GRAB-AND-GO BACKLASH?

GOATS ARE POPULAR BUT REMAIN A NICHE MARKET

Goats are popular these days. These cute bearded animals are found everywhere from funny YouTube videos (search “fainting goats” – you’ll see) to yoga classes. Best of all, their milk is used to produce some delicious cheese. While the U.S. may have been slow to catch on to goat’s milk, the rest of the world hasn’t. In fact, goat’s milk is consumed in 65% of countries around the globe. It seems that most of the goat’s milk that is produced in the U.S. doesn’t end up in a glass, however, but in the growing number of delicious artisanal cheeses that have come to the attention of the American palate. According to the FDA’s Food Composition Database, goat’s milk is giving cow’s milk some nutritional competition, as it contains more protein and calcium, as well as prebiotics, which can aid in gut health and digestion. A Department of Agriculture Census of Agriculture, showed that goat herds increased 61% — more than any other major livestock group — between 2007 and 2017 (the most recent data available). There is a downside, however. Nutritionally, goat’s milk contains significantly more calories and fat than cow’s milk, according to the FDA. Unlike cows, goats can only be milked seasonally, and it takes a lot more goats to generate a gallon of milk than it does cows. Many of these factors make goat’s milk expensive, which may be why it remains more of a niche market in the U.S.

Last year, Northeast Dairy’s issue on trends addressed consumers’ desire for grab-and-go dairy foods that provide quick and easy, single-serve snacking options for busy consumers and their children. However, grab-and-go usually also means containers, straws and spoons made from plastic. Dairy trends expert Donna Berry expects that the industry will soon see a consumer backlash as these busy consumers start to realize the trade-off of convenience for the sake of the environment. She even predicts that bulk shopping may become fashionable once again, as people continue to be concerned with ethical and responsible sourcing and sustainability in their food products.

WHY ARE CONSUMERS CHOOSING DAIRY-FREE? Knowledge is power. There’s no denying that plant-based dairy alternatives continue to grow in popularity. Some of our members are understandably opposed, while others have embraced the trend not as a replacement but as an addition to their product offerings. Here are some reasons why plant-based alternatives are making headway into the dairy space: • 65% of the population has a reduced ability to digest lactose, according to the U.S. National Library of Medicine • 15 million Americans have food allergies according to foodallergy.org • There has been a more than 600% increase in veganism in the last three years, according to a GlobalData report on the top trends in prepared foods • The non-dairy ice cream market is expected to exceed $1 billion by 2024, according to a Global Market Insights, Inc. report • There has been a 61% growth in nondairy milk sales over the last five years in the U.S., according to Mintel’s U.S. Non-dairy Milk Market Report. NED Magazine | Third Quarter 2019 • 35

DAIRY TRENDS

CHEESE:

Never Forget Taste Reigns

BY DONNA BERRY

t’s cheese. I’m convinced it’s cheese that allows a mere 2% of the American population to call itself vegan. This is one of only two foods (the other being bacon!) I know of that can be described as “making everything better.” And it shows in consumption data, as cheese continues to grow in the midst of the plant-based movement. According to the USDA Economic Research Service, Americans consumed 1.5-cup equivalents of dairy products per person per day in 1976 and in 2016. While overall quantity is the same, the mix has changed. Fluid milk consumption has fallen from 0.9 to 0.5 cup per person, per day, while cheese consumption has doubled. U.S. cheese consumption is expected to continue to grow over the next decade, topping 38 pounds per person by 2026. That’s a lot of cheese! Could it be to make all those plants taste better? This is not anything new. Think broccoli in cheese sauce. While cheese as an ingredient — both in the home kitchen and in commercial manufacturing — continues to grow, retail sales are also booming. Year-to-date retail volume sales are up 3% compared to the same period in 2018, according to IRI data provided to Dairy Management, Inc., courtesy of the Midwest Dairy Association. Cheese prices are at a favorable level, down 1.8% versus the same period last year. Natural cheese continues to be the driver, with early 2019 growth observed across most top-selling cheese varieties and forms. Most cheese blends and shredded forms — what home cooks often use in the kitchen — continue to outperform the category as a whole at retail. Sales of imitation cheese — those vegetable oil and plant-based dairy case invaders — continues to decline despite the fact that products continue to enter the category. Why? They just don’t beat the real thing.

Aside from milk alternatives, Nielsen data shows that there is “explosive growth” in products like plant-based cheeses, creamers, butter, yogurts and ice cream. Data shows that: • The plant-based milk category was up 9% (compared to 3% the previous year) and comprises about half the total dollar volume, at $1.6 billion. • Cow’s milk dollar sales are down 6%. Plantbased milk comprises 15% of total milk sales. • The growth in plant-based creamers has been particularly impressive — a 131% increase — with $109 million in sales. • Plant-based cheeses are growing at 43% — with $124 million in sales. • Plant-based yogurts are growing at 55% — with $162 million in sales.

(This article first appeared in April 2019 as a blog post on

(Source Donna Berry, BerryonDairy.com, February 2019)

BerryOnDairy and is reprinted with permission of the author.) 36 • Northeast Dairy Foods Association, Inc.

“OTHER” PLANT-BASED DAIRY ALTERNATIVES ARE EXPERIENCING EXPLOSIVE GROWTH

DAIRY TRENDS

Low-fat cheese, like mozzarella and some cheddars, are preferred for canines, as too much fat from any kind of food can cause stomach troubles and even pancreatitis. Cottage cheese is especially good for Fido, as it is low in fat and a great source of protein. Not every type of cheese is good for your dog, however. Avoid blue cheese, as it is not only high in fat, but when it becomes very ripe it can produce roquefortine, a type of fungus that can be toxic in large quantities. And, don’t give your dog cheese or cheese spread that contain ingredients known to be harmful to them, like garlic, onion or some herbs. Cheese is a great choice for most dogs, but not for every dog. If your pet is overweight, lactose intolerant or has kidney problems, it’s probably best to avoid most cheese and choose some other kind of wholesome treat. For most dogs, however, a chunk of cheese every now and then is a nutritious and delicious choice.

SIT, STAY, SHAKE: Cheese Can Be a Nutritious Dog Treat

e know how much Americans love cheese, but did you know that American dogs love cheese, too? A piece of cheese is a great high value snack or training tool for your furry companion. According to the American Kennel Club, cheese is generally safe and healthy for dogs — at least in moderation — because it contains protein, calcium, essential fatty acids and a variety of vitamins. Pet owners are looking for the same things in their pets’ food that they are looking for in their own — real and authentic ingredients. According to Mintel, a market intelligence agency, 27% of consumers say they look for pet food and treats with limited ingredients, while 37% are looking for natural ingredients and 18% want something organic. That makes real cheese the perfect selection for dogs, as it can be found in all of these categories.

Jefferson County, NY We Know The Dairy Business! Northern NY is Home to Dairy Processing Companies Great Lakes Cheese, HP Hood and Kraft Heinz There Are 275,800 Dairy Cows Producing 5.9 billion Pounds of Milk Strong Network of Businesses and Agencies to Support the Dairy Industry We Have Shovel Ready Sites and Prime Location for Access to Eastern Seaboard Markets Come grow with us in Jefferson County — locate your business here! Jefferson County Economic Development Jay Matteson, Ag Coordinator (315) 782-5865 800 Starbuck Ave, Watertown NY 13601 | growwithjeffersoncounty.com NED Magazine | Third Quarter 2019 • 37

DAIRY TRENDS

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Cheese Tea: This interesting beverage combines cold tea with a layer of foam made from milk and cream cheese. Add a sprinkle of salt, and you have a drink that is popular throughout Asia for its sweet taste with a savory finish. Originating in Taiwan nearly a decade ago, cheese tea soon became popular in China, where cream cheese was introduced in place of powdered cheese. It has since continued to grow in popularity across Asia. While it has been slow to be accepted by American palates, it is becoming more readily available in cheese tea shops that are popping up in the U.S. Beer Ice Cream: No doubt an offshoot of the popularity of craft beer, this alcoholic beverage is now served in scoop form. Some recipes cause the alcohol to evaporate, but others do not. The taste depends on the type of beer used. For example, stout beer lends itself to a flavor much like caramel. If you still want to drink your beer rather than eat it, beer ice cream floats are appearing on menus as another unique twist, Flavored Butter: It’s no longer just for the bread basket. Flavored butters are popular in all kinds of cooking for some added flavor and zing! Some varieties of flavors include red wine, cilantro lime, red pepper, mustard, orange jalapeno and even pineapple. The move towards more than your basic butter is closely tied to trends in artisanal cooking, dining and popular farm-to-table ingredients. More exotic flavors like bone marrow butter or wasabi-yuzu-kosho butter are popular, particularly with adventurous foodies, but more comforting flavors like honey and maple are popular choices right now, as well.

38 • Northeast Dairy Foods Association, Inc.

YEA OR NAY? What do you say? Would you be willing to try some of these new dairy trends?

Sheep Whey Vodka or Gin: Hartshorn Distillery is a new Tasmanian micro distillery making boutique batches of vodka and gin from sheep whey. They are the first in the world to create this product. The family who owns Hartshorn Distillery also owns Grandvewe Cheeses and was looking for a way to use the whey that was often thrown out in the cheesemaking process. Whey protein is full of complex sugars, which goes through a complex process that results in a vodka with “a sweet bouquet and extremely smooth finish thanks to the dairy influence and traditional aging methods.” (grandvewe.com) Mustard Ice Cream: French’s recently partnered with Coolhaus, a California-based ice cream company, to release a mustard flavored ice cream, in honor of National Mustard Day, celebrated on Aug. 3. This specialty flavor was served to adventurous customers in Los Angeles and New York City. Hot Dog Ice Cream Sandwiches: Not to be out done by the mustard industry, Oscar Mayer introduced an Ice Dog Sandwich in honor of National Ice Cream Day on Aug. 2. A layer of hot dog-infused sweet cream mixed with candied hot dog pieces and a layer of spicy mustard-flavored gelato is sandwiches between two cookie buns. Oscar Mayer partnered with il laboratorio del gelato of New York City to create this “masterpiece,” and the Oscar Mayer Wienermobile was seen throughout Manhattan handing out free samples in August. If your company is making one of these products (or something equally unique), we’d like to hear from you. Contact Northeast Dairy editor, Caroline K. Reff, at creff@northeastdairy media.com.

DAIRY TRENDS LET’S HAVE A SNACK! Americans are changing their perspective on snacks. It’s no longer a bowl of popcorn in front of a nightly television show or a treat to re-energize a child after a full day of school. Snacks are, in fact, often replacing meals these days as people are often working through lunch, saying no to sweets or seeking to improve their nutritional intake. How and why people snack seem to differ depending on age groups and their different concerns and needs. According to “Top Ten Trends for 2019: Daring Dairy” put out by Innova Market Insights: • 63% of Millennials are replacing meals with snacks due to lack of time. • 50% of Gen Xers lean toward cutting down on their sweet snack consumption • 67% of Baby Boomers are making changes to their diet in order to improve health. These statistics have impacted many brands in the creation of options to address the concerns of various demographics. According to Innova Market Insights report, “Snacking is becoming a central focus of innovation across all food and beverage categories from dairy to spreads.” It is, however, sparking many dairy brands like Activia, Chobani and Stonyfield to expand their product offerings with more snack-friendly formats that include smaller portion sizes, portable packaging and easier to transport options. Yogurt has been one of the products that has risen to the challenge with products that include mix-ins, built in spoons, and cookies or crackers for dipping.

VEGETABLES IN YOUR FROZEN YOGURT? Do you really want vegetables in your frozen treats? Perry’s Ice Cream Company hopes so. The company recently introduced its Frozen Yogurt Swirled with Sorbet in four flavors — strawberry tang twist and berry grape twist quarts and raspberry watermelon and berry grape single serve bars — made with real vegetable and fruit juices, as well as clean ingredients (no high fructose corn syrup, artificial colors or flavors). Vegetable juice in this product comes from sweet potatoes and carrots that complement the fruit juice. These flavors and ingredients are also embracing the consumer interest in probiotics by combining with the brand’s signature probiotic-packed frozen yogurt giving consumers “live and active cultures in the yogurt that have natural digestive health benefits and are gluten-free,” according to Perry’s.

NED Magazine | Third Quarter 2019 • 39

DAIRY TRENDS

ETHNIC FLAVORS A PLUS FOR DAIRY INNOVATORS Mango. Coconut. Curry. Wasabi. Ginger. Tamarind. These are probably not the first flavors that you associated with dairy products, but they represent a growing trend in ethnic flavors that is taking the entire food industry by storm. The latest U.S. census estimates that the number of Hispanic and Asian consumers are growing at a rapid pace. Along with this growth comes a more diverse food interest and a desire for

products that reflect the heritage of many of these consumers. However, the interest doesn’t stop with these particular ethnic groups. Americans everywhere — specifically Millennials — are noticing this infusion of new flavors and want to try a taste, too. That, coupled with Americans’ ability to travel to the far corners of the world to try new cuisine, and new ingredients being introduced on cooking shows like those often seen on the Food Network, has enticed people of every background to try new tastes. According to Statista, sales of ethnic foods are expected to surpass $12.5 million. Dairy, in particular, is sure to benefit, as dairy products with a bit of spice are expected to see a compound annual growth of more than 6% by 2026, according to Future Market Insights. This is an excellent opportunity for those in the dairy industry to innovate with new taste profiles in their own product lines. While these tastes are trending, there is one caution. Consumers want authenticity. They are looking for products that offer the same tastes as they remember from back home or experimented with in their travels — and they simply won’t settle for less.

USDA REPORTS DAIRY GROWTH CONTINUES, BUT PRODUCTS HAVE CHANGED

ccording to the USDA, the consumption of dairy products in the U.S. has risen faster than the growth of the country’s population. However, the consumption of individual products varies. As most of us are aware, people are drinking less fluid milk, as the competition from other beverages in and out of the dairy case has continued to thrive. In addition, milk is not the childhood staple that it used to be, as parents remain on the fence weighing nutritional value of dairy with other alternative products. However, while fewer people are pouring a glass of milk, more and more are enjoying the many varieties and options in cheese. While old favorites like mozzarella, American and cheddar still remain a staple, a vast variety of cheese 40 • Northeast Dairy Foods Association, Inc.

have become more easily available, adding to the trend of adventurous eating. The popularity of ethnic cuisines that use cheese as a main ingredient is also contributing to the cheese boom. All in all, cheese has become a staple of the American diet. Butter, once avoided for its fat content, continues to increase in popularity as many now see it as a product made from simple, natural ingredients. In addition, the availability of flavored butters, Amish-made butter and other gourmet butters in the dairy case have furthered the popularity. Finally, while the USDA reports that per capita consumption of yogurt has decreased, it is still holding its own, particularly Greek yogurt varieties, at levels significantly higher than the early 2000s.

The Scoop on How Stewart’s Commitment to Fresh and Local Has Been Key to Growth and Success BY CAROLINE K. REFF

hether it’s a delicious scoop of ice cream, a carton of milk or a quick bite to eat, you can never go wrong with a stop into one of the hundreds of Stewart’s Shops found in New York state and southern Vermont. This family business, which has been around since 1945, has built its success on strong values, fresh and local products and a commitment to its thousands of “partners” who work for the company every day. In addition, Stewart’s Shops is well-known for giving back to the communities it serves. It all started in Ballston Spa, New York, when the Dake brothers bought a small dairy and ice cream business in 1945. Not only did the store sell fresh and delicious products, but it was the first to sell ice cream in a folding half gallon package. That one shop has since grown into a booming business with 335 shops and approximately 5,100 partners offering not only some of the best ice cream around but also an array of items that provide fresh and convenient options for its customers. In the 1960s, Stewart’s Shops expanded its product offerings to include milk straight from its own dairy — from cow to shelf in 24 to 48 hours. Today, Stewart’s Shops sources fresh and local raw milk from 25 local farms in Washington, Rensselaer and Saratoga counties in New York state.

With the arrival of the 1970s came the ability to purchase gas at Stewart’s Shops. This was just another way Stewart’s remained committed to meeting customer needs. To make this happen, the company purchased hundreds of smaller “mom and pop” gas stations within its targeted geographic area that were no longer viable and transformed them into full service Stewart’s Shops where customers could fill both their glass and their tank at the same time. While dairy products remained at the heart of the business, there was no denying that customers wanted a good cup of coffee. At this time in the 1980s, this was an innovative move, as there wasn’t a barista on every other corner. Stewart’s became one of the first shops to offer customers not only a cup of coffee on-the-go but a cup of coffee they could pour for themselves right out of the pot on the way to work. This was a key move in a “Make Your Own” concept of graband-go foods that has become a hallmark of the business and continues to appeal to customers by giving them a sense of ownership. Soon, items like pastries, snacks, lottery tickets and newspapers became smart add-ons to offer to customers stopping in for their daily java fix. Since Stewart’s Shops were already configured with seating areas for ice cream, there was already a place for customers to sit and chat over coffee and a pastry, as well. NED Magazine | Third Quarter 2019 • 41

MemberProfile

The 1990s saw the addition of hot dogs, chili and sandwiches, as well as the shop’s own line of juices, drinks and milk called Stewart’s Refreshers. Stewart’s was an early adopter of single-serve beverages, long before these became the staple for most Americans that they are today. In the early 2000s, the company turned its focus to continuous improvement of its business by prioritizing “people and processes.” The family leadership decided to give onethird of the company to its employees in the form of an Employee Stock Ownership Plan, also known as ESOP, which is similar to a profit sharing plan. ESOP means that eligible partners are actually owners, and everyone works hard for overall company success. Today, approximately 40% of the company is partner-owned, and there are “75 millionaires in our ESOP this year,” according to Erica Komoroske, PR specialist for Stewart’s Shops. Over the better part of the last decade, Stewart’s Shops has continued to expand with food service options that fit the busy lifestyles of the on-the-run customer. Much more than fast food, the options offered by Stewart’s range from 42 • Northeast Dairy Foods Association, Inc.

prepared meal choices made in the Stewart’s kitchen to affordable pre-packaged foods. (And, of course, there’s still that delicious Stewart’s ice cream by the scoop or carton for dessert!) Quick and easy hasn’t taken the place of fresh and local, however — something that the Dake family built this business on. Stewart’s sells New York State Grown & Certified milk and eggs sourced from 26 family farms within 10 miles of its Greenfield, New York, plant. This certification ensures consumers that products carrying this seal — milk, ice cream, buttermilk, half and half, and heavy cream — are “produced locally, made by producers who meet safe food handling and best practices and demonstrate environmental stewardship.” While the company has evolved greatly since the 1940s, Stewart’s remains a family-run business with Bill Dake, 84, still serving as chairman of the board and coming into the office every day to stay involved in company strategy and day-to-day operations. His son, Gary Dake, is the current president of the company and has worked at Stewart’s for more than 30 years.

MemberProfile

Stewart’s Shops President Gary Dake said, “In many communities, Stewart’s Shops is so much to so many. For some, we are their coffee shop; for others we are their ice cream shop. And many of our customers shop us for our fresh and local milk and eggs. You’d be hard pressed to find a nonprofit or school district we haven’t supported in one way or another. We are a family-run business with humble roots, and we are looking forward to continued growth and success. We wouldn’t be where we are today without the hard work of our partners.” In 2019, Stewart’s Shops and related family foundations will donate $7.5 million to local charities. Its Holiday Match Program has been matching customer donations made in their shops from Thanksgiving Day through Christmas Day for 32 years. Stewart’s Holiday Match customers have helped the company contribute over $28 million to thousands of organizations since the program’s inception in 1986. In 2020, Stewart’s Shops will celebrate its 75th anniversary, and the celebration will include ice cream! Today, Stewart’s offers as many as 50 different ice cream flavors. Some are available only at the cone counter, while others are sold exclusively in half gallons or pints. Customers look forward to seeing what each season’s limited edition flavors will be. This fall, look for Pumpkin Pie and Philly’s Apple Pie at the cone counter and a limited-edition pint, Pumpkin to Talk About, a pumpkin ice cream with a cheesecake swirl and churro pieces.

Stewart’s Shops shows no signs of stopping, as is evident by the company recently investing $50 million into completely updating 20 existing shops, as well as the opening of four locations in new market areas in 2019 and similar investment for the past three years. However, this growth will never compromise its commitment to its fresh and local products, its employee partners and, of course, its loyal customers dashing in for a carton of milk or a delicious ice cream cone.

NED Magazine | Third Quarter 2019 • 43

Education

NDSA Awards $15,000 in College Scholarships

he Northeast Dairy Suppliers Association, Inc., announced 10 scholarships totaling $15,000 given to college students for the 2019-2020 academic year. Applicants for these scholarships must be an immediate family member of an employee of a current NDSA member company or a student member of NDSA who is enrolled full time with a minimum of 12 credit hours and have a GPA of 2.5 or greater. Bruce W. Krupke, executive vice president of the Northeast Dairy Suppliers Association, noted that there were many strong and qualified applicants this year. The NDSA Scholarship Committee awarded five $2,000 scholarships to students majoring in subjects related to the dairy/food industry or agriculture. This year’s recipients in this category were: • Remy Babbush of Merrick, New York, attending Cornell University and majoring in food science • Jenna Freyer of North Syracuse, New York, attending the Ohio State University and majoring in food science 44 • Northeast Dairy Foods Association, Inc.

• Karly Marshman of Oxford, New York, attending SUNY Morrisville and majoring in agriculture science • Dominic Mattilio of Willow Street, Pennsylvania, attending Penn State University and majoring in animal science • Ericka Vrooman of Pulaski, New York, attending SUNY Cobleskill and majoring in agriculture science • Additionally, the scholarship committee awarded five $1,000 scholarships to students in any course of study: • Jakob Behrendt of Columbus, Ohio, attending the Ohio State University and majoring in aerospace engineering. • Hannah Boyd of Lancaster, Pennsylvania, attending the University of Pittsburgh and majoring in engineering • Lily Daily of Lexington, Kentucky, attending the University of Kentucky and majoring in communications sciences & disorders. • Bryce Ostrander of Hampden, Massachusetts, attending Springfield Technical Community College, whose major is undeclared • Alexandria Reppi of Wolcott, New York, attending St. John Fisher College and majoring in nursing.

Scholarship winner Jenna Fryer was pleased to be the recipient of this monetary award. “I would like to thank the Northeast Dairy Suppliers Association and their members for their continued support of higher education,” she said. “I am fortunate to be a recipient of an NDSA scholarship, which has helped me financially as I complete my bachelor’s degree in food science at The Ohio State University in spring 2020.” Dominic Mattilio, another recipient, also expressed his appreciation. “This scholarship helps me pursue my goal of receiving an education and working in the agriculture industry,” he said. The Northeast Dairy Suppliers Association is pleased to present these scholarships to encourage those seeking careers in the dairy industry, as well as others pursuing a college education in various interests, according to NDSA President Ozzie Orsillo. Scholarship information is made available on the association’s website, www.neastda.org, each year after Feb. 1 with applications due by June 1. Funding for the scholarships comes directly from proceeds from the NDSA’s annual clambake, member dues and sponsorship of various dairy industry events.

BeneďŹ ts of Association Membership EXECUTIVE DIRECTOR AND INDUSTRY CONSULTANT SUPPORT

NDFA

Legislative Representation Through Executive Lobbying and Networking Safety and Environmental Information Economic Analysis and Forecasting Continuing Education and Certification Opportunities Industry Spokesperson Emergency Preparedness

PROFESSIONAL COST-SAVING PROGRAMS Dedicated Industry-Specialized Insurance Programs Employee Benefits, Including 401(k) Retirement Program Energy Supply and Consulting Services

NETWORKING AND MEETING EVENTS Annual Northeast Dairy Convention Contact Booth at the Annual Convention Annual Dairy Industry Clambake Hospitality and Sponsorship Opportunities Industry Plant Tours Annual Charity Golf Outing Fundraiser

COMMUNICATIONS AND PUBLIC RELATIONS Quarterly copy of Northeast Dairy Magazine Direct Customer Advertising Opportunities Industry Scholarship Program Membership Directory with Key Contacts in the Dairy Industry Digital Buyers Guide (launching in 2019)

ADVOCACY An association represents your interests before your government leaders, industry and business community. If your business/industry faces major threats or needs support, our association is right there on the front line fighting for you.

NETWORKING Association events, meetings and member directories make networking a reality for you and your peers. This is the one advantage many view as the most important reason to join!

NDSA

Milking Your Intellectual Property Rights

Wading Through Patents, Trademarks, FDA Innovation in Food and Beverage Products BY EMILY BILLIG, CYNTHIA SANDERS AND WENDY YOVIENE

BRANDING AND TRADEMARKING FOR BEVERAGE COMPANIES Walking into a convenience store on a hot summer day, a long line of glass refrigerator cases display dozens of cold beverages and frozen confections. So how does a beverage and/or frozen confection manufacturer carve out a niche? By using savvy branding for new products recognizing consumer trends. While energy, water and coffee beverages still dominate consumer drink preferences, in the last few years the popularity of cold pressed juices and naturally flavored sparkling beverages reflect consumers’ desire for fresh and healthy products. Also trending are beverages and food products made with cannabidiol, also known as CBD, made from certain types of hemp plants that consumers believe to be beneficial. Another interesting trend, perhaps for customers with a liquor license, is the growing number of “boozy” ice cream products, frozen pops and sorbets made with alcohol, wine or beer. With respect to milk, customized milk products claiming more protein, or, for example, the specialized A2 protein, are enjoying consumer attention. After identifying a new product, branding is the next step. Branding typically requires choosing a name for the product, creating a slogan and designing a logo for the label. Before using a new brand, the name, slogan and logo must be reviewed by trademark counsel to ensure that the brand will not infringe a competitor’s trademarks. Trademark counsel will perform searches in the U.S. Patent and Trademark Office and proprietary trademark search systems and provide a trademark search report that shows trademarks similar to the new brand for discussion with the brand owner. The trademark search reports provide evidence of the brand owner’s due diligence in clearing the proposed branding, which is helpful in protecting 46 • Northeast Dairy Foods Association, Inc.

the proposed trademark. If the proposed branding conflicts with an existing trademark, it is likely that a new brand must be developed and reviewed by trademark counsel. Another prerequisite for branding clearance is to scrutinize the trademark, slogan and logo to identify any portions of the mark that may present a production or health claim (e.g., “all natural” or “heart healthy”), nutrient content claim (e.g., “low-calorie,” “high-fiber” or “fat-free”) and/or structure/ function claims (e.g., “improves skin,” “fat burning,” “supports bones and joints”) or any such claims printed on the label. The FDA strictly defines the criteria for some claims, and in other instances the criteria for a claim is for it to be truthful and not misleading. In some cases, the FDA disclaimers must accompany claims, and in some cases these disclaimers arise out of court cases. It is also important to understand that using a health claim in the branding of a food or beverage product may convert it to a dietary supplement depending on the claims made, potentially subjecting the claims made to pre-market approval. Once the branding is fully cleared, the owner should consider filing a trademark application in the Trademark Office. The Trademark Office requires a minimum level of distinctiveness to register a trademark. The mark will not be registered in the USPTO trademark system if the mark is generic or very descriptive of the product being branded. Beverages and frozen desserts are considered “goods” and defined within the International Classification numbering system for trademarks as follows: • IC 029 Milk • IC 030 Ice cream, freezer pops, frozen juice bars • C 032 Non-alcoholic vegetable and fruit juice; smoothies; fruit and vegetable-based beverages to cleanse toxins from human digestive systems

Legal • IC 032 Beer • IC 033 Wine • IC 033 Whiskey • IC 033 Liquor in ice cream form

PATENTING FOOD AND BEVERAGE ITEMS On the patent side, various aspects of food and beverage products and their manufacture may be eligible for consideration for patent protection. In reality though, patents covering food and beverage products themselves are relatively difficult to obtain. Patents can be granted for novel methods of manufacture. A recipe is a series of ordered steps that fits into this category. But the steps involved in making a food or beverage product, such as “mix,” “distill,” “steam,” etc., are, in the vast majority of cases, known processes, given that humans have been preparing food for thousands of years. And, most, if not all, of these processes have known or predictable outcomes when applied to edible ingredients or combinations of ingredients. In order to obtain a patent on a method of manufacture, that method must be novel and “non-obvious.” And, because of these known qualities of ingredients and preparation methods,

variations such as an added ingredient, change in cooking time or temperature or the like would not satisfy this “non-obvious” standard because those preparation methods have predictable effects on the known ingredients. Method claims that relate to processes other than pure “food preparation,” however, can provide protection for novel aspects of food or beverage manufacture. Patents have been granted for methods of producing frozen fermented yogurt products, tenderizing fish bones and extracting various natural compounds for use in food, filtration, packaging foods, etc. There are a number of patents related to the preparation of lactose-free milk products. For example, one describes a system and method for hydrolyzing lactose. Another describes a process for producing a lactose-free milk that does not confer a sweet taste to the milk normally resulting from the hydrolysis of lactose into monosaccharides. In addition to methods, products (tangible goods, as well as compositions of matter) are also eligible for consideration for patent protection. Just like for recipes, the food product itself, if made by a process derived from a known recipe (improved as it may be), would be relatively unlikely to receive patent

NED Magazine | Third Quarter 2019 • 47

Legal protection. However, one can imagine numerous devices used in the manufacture of food or beverage products. Non-obvious improvements to these devices could be patentable — consider automated home food preparation devices, devices based on induction technology, and the like. Trade secret protection is another tool often used for safeguarding innovations in food and beverages and is mutually exclusive with patent protection. The latter requires public disclosure of the invention, while trade secret protection is drawn wholly from its owner’s act of keeping it a secret, accessible only by those on a need-to-know basis and under non-disclosure agreements or the like. For example, The Coca-Cola Company’s formula for Coca-Cola syrup is one

of the best examples of a trade secret. Trade secret protection does not prevent someone else from “reverse engineering” the innovation or recipe; the law only provides for damages against someone who has wrongfully disclosed or stolen it. However, if the trade secret is maintained in confidence, it can last for the life of the product, whereas patent protection, if obtained, provides protection for a term of 20 years. Emily Billig is a patent attorney and a member of the Intellectual Property Group, and Cynthia Sanders is a trademark and entertainment attorney, both in the Baltimore office of Baker Donelson; and Wendy Yoviene is a food and agriculture attorney with Baker Donelson in Washington, DC.

FUTURE OF TRADEMARKING CANNABIS

ith the removal of hemp and its derivatives (including cannabinoids) from the list of controlled substances following the 2018 Farm Bill, many food and beverage manufacturers have jumped in with trademark applications for CBD and hemp products. Recent trademarks, including such food and beverage items as: Hemp Dream for “hemp milk used as a milk substitute;” Cool Hemp for “non-dairy frozen confections comprised of hemp milk as an ingredient;” Laura’s Hemp Chocolate for candy bark, chocolate and wafers, all comprised of hemp-based ingredients; and Hemprollups for “frozen confections, hemp based frozen confections.” However, the FDA still retains authority to regulate the use of CBD in food, beverages and dietary supplements, and until the FDA issues regulations setting the framework for CBD, it is illegal to sell food, beverages and dietary supplements containing CBD in interstate commerce. The FDA has promised action and guidance soon, starting with a promised progress report by early fall 2019. Meanwhile, the U.S. Trademark and Patent Office, a unit of the federal government, has recently issued guidance regarding trademarks for cannabis products. Each trademark that seeks federal registration must have a lawful basis for its application. The trademark and its goods and services listed in the application must comply with all federal laws, including the sale and shipment of the product under the trademark. Therefore, if the goods and services violate federal law — such as FDA regulation — the registration will be refused. The mark “Cannabis” for “food supplements” was refused registration because the trademark was “not in lawful

48 • Northeast Dairy Foods Association, Inc.

use in commerce” because the food supplements listed in the application were “marijuana-related goods, based on evidence.” Another application for Cannabis King for “cannabis oil, cookies and candy, and delivery of goods” was abandoned due to an inquiry from the Trademark Office as to whether its goods and services complied with the Controlled Substance Act, including its prohibitions on manufacturing, distributing, dispensing or possessing certain controlled substances like marijuana and marijuana-based preparations. An application for a cannabis trademark for non-controlled substances under the CSA, will register barring non-cannabis issues. For example, Cannibisnow was registered July 2, 2019, for magazines in the field of cannabis. Also, I CANNABIS was successfully registered on April 9, 2019, for “ankle socks, baseball caps, bathrobes, belts, belts made of leather, bras, denim jackets, ear muffs, fabric belts, fedoras, flip flops, footwear, footwear for men, footwear for women, yoga shirts.” The use of CBD is certainly one to watch as businesses, including many of those in the dairy industry, are eager to take advantage of what is seemingly becoming a product that consumers are seeking.

HumanResources

Dairy Industry Is Not Immune to Sexual Harassment Enforcement, Education, Formal Policies BY PAUL BANUSKI

ver the past two years, in the wake of a number of high profile cases of workplace sexual harassment or assault made against movie producer Harvey Weinstein, journalist Charlie Rose, chef and restaurateur Mario Batali, as well as countless others, a groundswell of activity has been triggered to address the issue of workplace harassment. In the subsequent months, some state legislatures, such as New York, California, and Connecticut have passed new laws to attempt to crack down on employer actions to force employees into arbitration or non-disclosure agreements, while at the same time requiring them to train their employees on sexual harassment. Industry groups have been issuing their own guidelines on dealing with sexual harassment at work. Some industries may be more susceptible not just to harassment itself, but the nature of the work may make it difficult for effective reporting. The dairy industry — from farms, distributors, manufacturers and the many vendors that provide ancillary services — is not immune from these cultural shifts. It’s now incumbent on industry leaders to educate themselves about the changes to federal and state regulation and enforcement, increasing awareness among employees about what constitutes harassment and what steps can be taken to effectively protect the organization and its people. Think of positions within the industry that work non-traditional hours or in isolation/semi-isolation, as well as migrant workers who may not understand the language or laws. Within the industry, there are many unique challenges that can make preventing and reporting harassment a significant challenge. So where to start? While nearly every employer is subject to federal anti-harassment laws under oversight from the Equal Employment Opportunity Commission, your state may have laws that require more of employers. For example, New York’s law encompasses a larger group of “protected classes,” groups of people for whom discrimination is subject to higher levels of scrutiny. This may include sexual orientation, gender identity

and more. The laws of your state may call for regular training. For example, Connecticut requires that employees be trained on how to prevent harassment once every 10 years, while New York and California both have annual training requirements. Similarly, each state may have exceptions for smaller employers — under five in California, whereas in New York all employers must provide training to their employees, regardless of how many people work there. Every organization should put in place policies and procedures that its employees can use to understand what constitutes harassment and how they can report it if it does occur. While many employers have a handbook that may include a statement on harassment, it’s critical that this policy be reviewed to make sure it’s in compliance with your state and local laws, that it outlines a clear process for reporting instances of harassment, and that internally your organization has a procedure for conducting a thorough and fair investigation into any allegations. Right now (though laws may be changing in some jurisdictions), an employee that fails to take advantage of his/her employer’s internal process may have a claim against the employer dismissed, whereas an employer that has no reporting procedures or mechanisms in place can be found liable for any harassment that goes on in

NED Magazine | Third Quarter 2019 • 49

HumanResources It’s now incumbent on industry leaders to educate themselves about the changes to federal and state regulation and enforcement, increasing awareness among employees about what constitutes harassment and what steps can be taken to effectively protect the organization and its people.

Do you sell products or services to companies that process, manufacture and distribute dairy products?

Let us help you make a splash. Boost your bottom line and brand awareness within the industry. Contact us today to learn about the opportunities. Hannah Gray, Relationship Manager hannahg@nedairymedia.com 315-445-2347 Ext. 115 50 • Northeast Dairy Foods Association, Inc.

the business. A best practice when crafting these policies and procedures is to have multiple people within an organization who employees can report to in the event that one is compromised or an employee may not feel comfortable around. If it’s at all possible, having both a man and a woman available to go to with a complaint is a best practice. As for training, some states require employees to be trained, while others do not. Your state’s department of labor or civil rights enforcement should have guidance on what, if any, training requirements exist and what standards that training must meet. Even if you’re not required to provide training to your employees on sexual harassment, at a minimum, employers should be providing every employee with a copy of the anti-harassment policy and making sure that employees know the procedures to report sexual harassment. You can do this at the time of hire or at an annual performance review. Sexual harassment and sexual assault can be devastating to a victim and can have ripple effects on co-workers, the employer and beyond. It’s in every organization’s interest to work on eliminating harassment from the workplace, and it starts with recognizing the particular vulnerabilities within your organization. Paul Banuski is a human resources consultant working for HR One, a payroll and human resource consulting firm in upstate New York. He has developed employment policies and employee handbooks for a variety of organizations across sectors. Banuski took the lead on developing materials to help employers comply with New York State’s sexual harassment prevention law and has conducted over 100 hours of training on the subject in the past year. He can be contacted at pbanuski@peopletopayroll.com.

Include Your Insurance Professional to Minimize Risk BY LISA BOLDUC AND STEPHEN MESSINA

here are a handful of ways to deal with the various risks a business faces. Risk can be mitigated by implementing processes, procedures or programs. Risk can be ignored due to being unaware of its existence or a belief that the risk will never come to fruition. Risk can also be transferred by the way of contracts. Before delving into some specifics, consider the following story one of our clients experienced: Company A manufactured a consumer product at its 150,000-square-foot building. This building was quite old and was due for a roof replacement. Company A received quotes from numerous contractors and eventually chose one of the bids. This contractor had a handful of sub-contractors it planned to utilize. Company A had a contract in place for the general contractor, as well as contracts

directly with the sub-contractors, as it had done previously. About halfway through the project, Company Aâ&#x20AC;&#x2122;s safety manager saw a storm coming with high winds. Due to this storm, the safety manager went to find the foreman to discuss ceasing work for the day. While talking with the foreman, one of the sub-contractorâ&#x20AC;&#x2122;s employees slipped and fell 20 feet off of the roof. The fall resulted in serious injuries, but the worker was alert and conscious after the fall. In response to the fall, Company A conducted an investigation and discovered the sub-contractor that fell was not using a safety harness, which may have prevented the injury. It also discovered that it had yet to receive the signed contractual agreement back from that sub-contractor. Due to the lack of contractual risk transfer, the company was sued over the incident. When the case concluded, Company A had to pay $250,000 to the

injured party. Due to the high deductible General Liability Program Company A had, this settlement was paid 100% out of pocket. The part of this story that is most frustrating is that if that contract was signed, Company A would have not had to pay anything to the injured party. One missing signature cost Company A $250,000! This issue is pervasive within all industries and all company sizes. Some companies feel comfortable with their contractual risk transfer processes because their attorneys are heavily involved. While it is highly advised to have counsel draft the contracts, it is doubly important to include your insurance broker in this process, as well. Lawyers are certainly legal experts, but they are not insurance experts. By utilizing both parties, you can be sure that the contract is as strong as possible. (continued on page 52) NED Magazine | Third Quarter 2019 â&#x20AC;˘ 51

HumanResources

WHEN SHOULD YOU BE WORRIED ABOUT TRANSFERRING RISK? The biggest exposure exists when any construction related work is happening. Not only is it important for high risk contractors, like roofers, but it is also imperative for seemingly low risk contractors, like IT workers. Any party that sets foot on your facility CAN be injured. When someone is injured on your grounds, he/she can tender a suit. A contract will prevent legal liability

that may have financial implications. Essentially, anyone that sets foot on your facility for anything more than a meeting should sign some type of access agreement. This agreement can be separate from any construction contract or built into the construction agreement.

DOCUMENTATION It is imperative to document this process. Of course, a copy of the signed access or construction agreement should be kept on file. The accompanying certificate of insurance should also be kept on file. For any open-ended access agreements, the expiration date of the certificate of insurance should also be noted, so that a new one can be requested before its expiration.

CERTIFICATES OF INSURANCE This document does not provide coverage. It is simply a reference to the coverage that is in place. Companies should work with their insurance brokers to educate employees on what to look for within the certificate, including the accompanying forms. Understanding how to verify that the various coverages, limits and conditions are shown is imperative. If the signed agreement’s terms cannot be met by the insurance policy, then you could end up still having liability due to the claim not being funded by the sub contractor’s insurance policies. Creating a method for reviewing, documenting and following up for a new certificate after policies expire is very important. Even if you do everything correctly in the beginning, the sub-contractor could change insurance carriers at renewal, and the new policies may not meet the agreed upon insurance requirements. If, after a claim, you find out the change in carrier resulted in inadequate coverage, it is too late — exposing your company’s balance sheet. Located in Upstate New York, Brown & Brown Empire State is a full-service retail brokerage offering employee benefits, commercial insurance, personal insurance, bonding, risk management and claims management products and services. It is a member endorsed service of the Northeast Dairy Foods Association and the Northeast Dairy Supply Association. For more information, go to bbempirestate.com.

t Agri-Mark, we are continually investing in the Northeast Dairy industry because this is our home. We have finished the $21 million investment in a new dryer at our butter/powder/condensing plant in West Springfield, Mass., shown above, for the 950 dairy farm families that own the co-operative. This project boosts the plant’s capacity by roughly 33% and will allow us to better serve our customers. Please contact us at 978-552-5500 for more information on how we can serve you! 52 • Northeast Dairy Foods Association, Inc.

Lisa Bolduc is an account executive and Stephen Messina is vice president of commercial lines at Brown & Brown Empire State. You can reach them at 315-474-3374 or lbolduc@bbempirestate.com or smessina@bbempirestate.com.

OSHA UPDATES OSHA 300 Logs Common Safety Audit, OSHA Compliance Findings in Dairy Processing Plant BY STEPHEN VALENTINE, CIH

t this time, all dairy processing plants should have some sort of safety audit process in place to continually evaluate safety compliance in the facility. These safety audits are commonly conducted by the safety manager, safety committee members, area supervisors or other safety trained individuals, as well as an outside safety consultant on occasion. The purpose of the safety audit is to ensure the safety practices in the safety program and as prescribed by OSHA regulations are being implemented in the work processes, as well as to identify compliance items for corrective action. Failure to follow appropriate safety procedures creates increased hazards for employees and the potential for workplace injuries, and, in the event of an OSHA inspection, could result in citations with an increasing financial penalty. The intent of this article is to provide companies with insight into some of the more common safety audit findings at a dairy processing plant from years of auditing experience. The article will also point out some of the most common OSHA citations and how they match up with the more common safety audit findings. Communicate these common safety findings to your safety auditors and see how your company matches up. Here are some results: 1. A Log of Recordable Injuries (29 CFR 1904) must be maintained and updated within seven days of any recordable incident. It is even more important now to accurately track OSHA recordables, as your company

is likely now required to submit the OSHA 300A log summary annually to OSHA. Personal Protective Equipment (29 CFR 1910 Subpart I), such as protective gloves, safety glasses, protective shoes, respirators, hearing protection, etc., must be used, maintained and stored properly. Also, each facility must have a written certification of PPE hazard assessment that specifies the tasks/ jobs and the required PPE. (Note: The Eye/Face Protection and Respiratory Protection standards are the No. 10 and No. 4, respectively, top OSHA citation for 2018.) Confined Space Permits (29 CFR 1910.146) must be completed for all confined space entries and the completed permits must be reviewed and maintained for one year following entry. These are typically related to tank/ silo entries, as well as potentially some filling/packaging equipment. Equipment-Specific Lockout/Tagout Procedures (29 CFR 1910.147) must be developed and written for most all machinery and equipment in the facility (with some exceptions) and these procedures must be reviewed/updated periodically (usually annually). (Note: The Lockout/Tagout standard was the No. 5 top OSHA citation for 2018.) Eye Wash and Shower Stations (29 CFR 1910.151) should be inspected (and documented) weekly per the American National Standards Institute and located within 10 seconds/55 feet travel distance from any corrosive chemical hazard. (continued on page 54) NED Magazine | Third Quarter 2019 â&#x20AC;˘ 53

OSHAUpdates 6. Fire Extinguishers (29 CFR 1910.157) must be tested annually (with tag) and visually inspected on a monthly basis (documented). 7. Powered Industrial Trucks/Fork Trucks (29 CFR 1910.178) must be inspected (documented) on every shift prior to initial use. (Note: The Powered Industrial Trucks standard was the No. 7 top OSHA citation for 2018.) 8. Machine Guarding (29 CFR 1910.212) must be in place around any machine or equipment to protect the employee from hazards created by a point of operation, ingoing nip points, rotating parts, flying chips and sparks, and these guards should be maintained in place and routinely inspected. (Note: The Machine Guarding standard was the No. 9 top OSHA citation for 2018.) 9. Electrical (29 CFR 1910 Subpart S) panels must be labelled with their magnitude and what they control, free for unobstructed access (e.g., 3 feet), free from openings into the electrical (i.e., spacers, knock outs, etc.) and closed when not in use.

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54 • Northeast Dairy Foods Association, Inc.

OSHAUpdates Failure to follow appropriate safety procedures creates increased hazards for employees and the potential for workplace injuries, and, in the event of an OSHA inspection, could result in citations with an increasing financial penalty. 10. Stainless Steel Welding (29 CFR 1910.1026) could result in employee exposure to hexavalent chromium and OSHA mandates that at least baseline hexavalent chromium air monitoring is conducted to verify employee exposure below the OSHA standard. 11. Bloodborne Pathogens (29 CFR 1910.1030) requirements are applicable to any company that provides first aid/CPR or medical training to employees that are responsible (e.g., first aid team) to provide these services in the workplace in the event of an emergency. 12. Hazard Communication (29 CFR 1910.1200) requires that all companies maintain a current chemical inventory and safety data sheets for all these chemicals with all

MSDSs now replaced with SDSs. (Note: The Hazard Communication standard was the No. 2 OSHA top citation for 2018.) Challenge your safety auditors to focus on the more common safety audit findings and the top OSHA cited standards. Stephen Valentine, CIH, is the director of environmental, health and safety with Partners Environmental Consulting in Syracuse, New York. He is a consultant to Northeast Dairy Foods Assoc., Inc. members and can be contacted at svalentine@partnersenv.com or 315-263-3183.

Hit it out of the park with Herbein Business Valua�on Merger and Acquisi�on Assistance Li�ga�on Support Cost Benchmarking Product Cos�ng Comparisons Raw Milk Analysis Dairy Industry Seminars Product Shrinkage Control Estate and Re�rement Planning Business Succession Planning Cost Segrega�on Federal Milk Order Consul�ng State Milk Order Consul�ng

www.herbein.com 1.855.HC.Today NED Magazine | Third Quarter 2019 • 55

Member News and Announcements

reek yogurt company Chobani announced Milk Matters, a holistic approach to support the economic, environmental and social impacts of milk. This initiative is in collaboration with Fair Trade USA, the World Wildlife Fund, National Milk Producers Federation, Cornell University and other state and community programs. The intention of this program is to provide relief for farmers who are struggling, according to Chobani. The company has highlighted six “critical pillars” as the focus for Milk Matters: worker well-being, environmental stewardship, animal care, local sourcing, investing in dairy communities, and freedom and flexibility for dairy farms. Evergreen Packaging Equipment has named Kimberly Ammons as custom solutions manager. In this new role, she will support customer requests for solutions specific to existing Evergreen gable top equipment. Ammons began her career at Evergreen Packaging in 1993 in engineering and has an extensive background working on many of the machine models currently installed throughout the world. The company has also named Mike Tisdale to manager, equipment technical support and training. In this new role, he will continue to expand the focus of Evergreen Packaging’s core strength of customer support and technical training. Tisdale joined Evergreen Packaging in 1984 in technical service. Herbein + Company, Inc., announced that Manager Roxanne N. McMurtry, CPA has been named the Pennsylvania Institute of Certified Public Accountants Reading Chapter President. As president, she will serve as the leader of the Reading (PA) Chapter and oversee all chapter activities and governance, as well as provide direction to help achieve chapter

56 • Northeast Dairy Foods Association, Inc.

specific goals. McMurtry is in the accounting and auditing department at Herbein. She joined the firm in 2005 and is a key team leader on Herbein’s specialized government team. French dairy products corporation Lactalis Group has acquired Ehrmann Commonwealth Dairy, the U.S. yogurt subsidiary of Ehrmann AG, a German-based dairy company. The deal is the fourth acquisition Lactalis, the largest dairy products group in the world, has made in two years under its U.S. growth strategy. “The Ehrmann acquisition is a terrific complement to our Stonyfield and siggi’s brands in the U.S.,” said Thierry Clement, CEO of Lactalis North America. “Ehrmann’s Vermont and Arizona plants are the ideal platform to develop our star brands, strengthen national distribution and secure topflight quality and service for our private label customers. The capability we gain with Ehrmann’s two plants, combined with the power of our leading brands, ensures the long-term growth of the Lactalis yogurt business in the U.S. and underlines our commitment and ambition in the category.” MilkPEP hit the trifecta at the 17th Annual Business Awards, a national, all-encompassing premier business awards program, for several of its public relations campaigns. These winning campaigns were: • Communications or PR Campaign of the Year, Food & Beverage (Gold): Built with Chocolate Milk • Communications or PR Campaign of the Year, Consumer Products Category (Gold): Milk It! • Communications or PR Campaign of the Year, Influencer Management (Bronze): MilkPEP’s Influencer Network

Member News Congratulations to Perry’s Ice Cream for being honored as the 2019 Plant of the Year by Dairy Foods. The company credited its plant employees and loyal customers for helping it achieve this distinction. The plant manufactures 12 million gallons of ice cream products annually in its Akron, New York, location. Phibro Animal Health Corporation announced it has acquired the business and assets of Osprey Biotechnics, Inc., a privately held developer and marketer of innovative microbial products. Acquiring the Osprey business strengthens Phibro’s portfolio of nutritional speciality products and provides new opportunities in a fast-growing sector of the animal health industry. Osprey manufactures and markets numerous products for a variety of applications and industries, as well as produces the key components for Phibro’s recently launched Provia Prime direct fed microbial product for poultry.

RWS Designs & Controls, a leading supplier of sanitary process equipment, systems, automation, turn-key project and designer/engineering services for the dairy and other process industries, announced the addition of Dave Scherr and Greg Warren to its growing team of industry professionals. Scherr, who spent more than 20 years with APV, SPX Flow Technologies and 16 years with Clayton Steam Generation, brings years of experience assisting dairy processors with the selection, supply, installation and commissioning of plant equipment and turnkey capital equipment systems and engineering services. Warren, who spent more than 40 years with Dean Foods and many of its affiliates, brings decades of experience and expertise in plant auditing and optimization, improving yields and reducing operation costs.

NEW MEMBERS

he following new members recently joined the Northeast Dairy Suppliers Association, Inc. For more information about the benefits and services available to members in both the Northeast Dairy Suppliers Association and the Northeast Dairy Foods Association, contact Alex Walsh, director of membership and communications, at 315-452-MILK (6455) or aw@nedairyfoods.org.

AMCOR RIGID PACKAGING

CDF CORPORATION

THE PROBST GROUP

Terry Madden

Leigh Vaughn

Gary Gibson

Business Development Manager

77 Industrial Park Rd.

Business Development Manager

105215 M-52

Plymouth, MA 02360

17035 Wisconsin Ave., #120

Manchester, MI 48158

888-593-2211

Brookfield, WI 53005

734-428-4529

lvaughn@cdf1.com

262-402-6086

Terry.Madden@AMCOR.com

DAIRY AMERICA

ggibson@probstgroup.com

JAMES FARRELL & CO.

AJ Cecconi

Executive Assistant

STEEL & O’BRIEN MANUFACTURING

Director of Sales

13810 SE Eastgate Way, Suite 520

Michael Lovelace

7815 N. Palm Ave.

Bellevue, WA 98005

Sales Manager

Fresno, CA 93711

206-357-5518

7869 Route 98

559-251-0992

Florindap@jfarrell.com

Arcade, NY 14009

AJ@DairyAmerica.com

www.jamesfarrell.com

585-492-5800

Florinda Peralta

mike@steelobrien.com

NED Magazine | Third Quarter 2019 • 57

What’sNews

Dairy May Aid Anxiety

ension. Heart Palpitations. Excessive Worry. Difficulty Concentrating. While only your doctor can know for sure, these may be symptoms of anxiety. While dairy products aren’t a miracle cure, certain foods that may help curb anxiety symptoms are found in the dairy case, including milk, yogurt, kefir, sour cream, some soft and hard cheese and buttermilk, according to the Mayo Clinic. According to the Anxiety and Depression Association of America, 40 million adults in the U.S. are affected by some degree of anxiety. A quarter of all teens have some form of anxiety, as well, according to the National Institute of Mental Health. It is one of the most common mental illnesses worldwide, but it can also be highly manageable through various therapies, medications and even diet. Yogurt is a good choice for those looking to control anxiety symptoms. According to yogurtinnutrition.com, the fermentation process used in making yogurt creates probiotic activity, which promotes gut health. Research shows that there is a close connection between gut health and brain health — thus the belief that yogurt can assist in anxiety relief. Plain, unsweetened Greek yogurt is said to be the best choice, but other yogurts that specifically list active cultures on the label are also thought to be beneficial. In addition, according to “Dairy Products and Inflammation: A Review of the Clinical Evidence” by Alessandra Bordoni, et. al., yogurt, along with some other dairy products, contains anti-inflammatory properties that can help fight anxiety and depression. 58 • Northeast Dairy Foods Association, Inc.

Research shows that there is a close connection between gut health and brain health — thus the belief that yogurt can assist in anxiety relief. What could be better than a cold glass of milk? Not much if you’re looking to quell anxiety symptoms. Milk provides minerals like calcium, potassium and magnesium that are thought to help ease anxiety symptoms. Magnesium, in particular, has been the subject of a number of studies related to its mental health benefits. Interestingly, most Americans don’t get enough magnesium in their diet (and milk is an easy way to remedy that, as a cup of whole milk contains 24 mg. of the mineral). In addition, milk contains Vitamin D. According to a report from the Journal

of Affective Disorders, there is sufficient evidence to show that Vitamin D “can improve depression, anxiety and mood.” Anxiety.org states that “an easy way to increase your Vitamin D levels is to drink a glass of milk before bed,” as it increases serotonin levels and helps combat insomnia, which can contribute to anxiety. While no one food can claim to be a cure all for any health issue, including anxiety, ongoing research seems to suggest that a healthy balanced diet that includes nutritious dairy products may help ease anxiety symptoms.

What’sNews

St. Albans Cooperative Creamery Merges with Dairy Farmers of America

n late July, membership of the St. Albans Cooperative Creamery gave its overwhelming approval to a merger with Dairy Farmers of America. The merger reflects a desire to position SACC members for a secure, long-term future amid rapidly changing market dynamics. The merger was effective as of Aug. 1, 2019, and the co-op is now known as the St. Albans Creamery LLC, a wholly owned subsidiary of DFA. “Our board has been working nearly two years to strategically plan for the future of our members,” said Harold J. Howringan, Jr., chairman of the SACC board of directors. “With increasing shifts in customer needs, an imbalance in supply and demand and a volatile milk price cycle, it is clear change is needed for our cooperative; however, with change comes great opportunity. DFA offers increased value to our members with the ability to make continued investments in operations, a clear vision for the future and the depth of leadership to carry out that vision.” SACC has been an integral part of the Vermont dairy community for the past century and a member cooperative of DFA since 2003. As a national dairy marketing cooperative, DFA offers SACC members milk market security, investments in a nationwide network of manufacturing facilities, access to patronage dividends and valuable member programs and services. Conversely, the merger provides DFA members with established customer

relationships, investments in critical hauling and manufacturing assets in the Northeast and increased milk marketing activities in the region. DFA, based in Kansas, has 14,000 farmers and 46 plants across the country – including 114 member farms in the state of Vermont. Both organizations have successfully collaborated in the past, but the merger is intended to lead to even greater opportunities.

“DFA and St. Albans have always had closely aligned philosophies and values, with both cooperatives focused on providing value to members and committed to preserving the Northeast tradition of family dairy farming for years to come,” said Brad Keating, senior vice president and chief operating officer of DFA’s Northeast Area. “With our strong history of working together, a merger is a natural evolution of our partnership.”

FINANCING THE

DAIRY

INDUSTRY

VERTICALLY INTEGRATED AG BUSINESSES PROCESSING AND MARKETING EQUIPMENT • VALUE-ADDED AG BUSINESSES DAIRY SERVICE AND INPUT BUSINESSES • PARTNER WITH OTHER CAPITAL PROVIDERS

800-562-2235 | FARMCREDITEAST.COM

NED Magazine | Third Quarter 2019 • 59

What’sNews

Canada Announces Steps to Reduce Plastic Waste

n June, Canadian Prime Minister Justin Trudeau announced that the government of Canada is taking additional steps to reduce the country’s plastic waste, support innovation and promote the use of affordable and safe alternatives. Under this initiative, the United States’ neighbor to the north, in conjunction with governments and businesses across Canada, will • Ban harmful single-use plastics as early as 2021 (e.g., plastic bags, straws, cutlery, plates and stir sticks) where supported by scientific evidence and warranted and take other steps to reduce pollution from plastic products and packaging. • Work with provinces and territories to introduce standards and targets for companies that manufacture plastic

products or sell items with plastic packaging so they become responsible for their plastic waste. These measures support the Canadian Council of Ministers of the Environment’s Development of an action plan to implement the Canada-wide Strategy on Zero Plastic Waste. According to information released by the Canadian government, about one-third of the plastics used in Canada are for single-use or short-lived products and packaging. In fact, in Canada, up to 15 million plastic bags are used every year, and close to 57 million straws are used daily. Less than 10% of plastic used in Canada gets recycled. Without a change in course, Canadians will throw away an estimated $11 billion worth of plastic materials each year by 2030.

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.

60 • Northeast Dairy Foods Association, Inc.

What’sNews

FDA Provides Educational Material to Encourage Tweens to Read Labels

ead the Label is the “next generation” portfolio of education materials based on the U.S. Food and Drug Administration’s award winning Spot the Block, a campaign to encourage tweens (ages 9 to 13) to look for and use the nutrition facts label on food and beverage packages. Read the Label includes engaging content plus hands-on parent information and community outreach to help make label reading understandable for young people. Read the Label also targets tweens’ parents because they serve as

role models and are in a key position to help their children make healthy dietary choices. For more information, visit www.fda.gov/nutritioneducation. According to the FDA, kids, particularly tweens, are in a transition where they are developing a greater interest in caring for themselves and are making plenty of their own choices about food and snacks. This campaign is aimed at reaching these tweens now in order to guide them in good decision making that can last a lifetime. The campaign considers parents as role models work-

ing to help kids “get their food facts first.” Parents are encouraged to read food labels with their children, so that kids gain a better understanding of what all of the information means and can use it to make nutritional choice. The FDA has some excellent resources on nutrition and labels, including Whyville, a virtual place where young “citizens” can practice label reading and learn to make healthy snack choices. Find the FDA’s label games, Label Lingo and Snack Sort, at www.whyville.net.

Hygienic Product Solutions for Sanitary Processes

Schenck Process LLC 7901 NW 107th Terrace Kansas City, MO 64153 816-891-9300 sales-fcp@schenckprocess.com www.schenckprocess.com/us

The Schenck Process hygienic family of feeders, dust collectors, cyclones, filter receivers and bag dump stations are either approved or meet the standard set by 3-A inspectors. All products are built in a stainless steel production only facility and are designed to meet the sanitary process needs of the dairy industry. Standard features include: Stainless steel construction 3-A or equivalent design Equipment surfaces that minimize water or product collection Tool-less designs that speed cleaning and maintenance For more information on how our hygienic bulk material handling equipment and systems can provide sanitary solutions for your dairy process contact us today.

NED Magazine | Third Quarter 2019 • 61

NORTHEAST DAIRY CONVENTION

Held at the Otesaga Resort in historic Cooperstown, New York

he Northeast Dairy Foods Association, Inc., and the Northeast Dairy Suppliers Association, Inc., in conjunction with the Pennsylvania Association of Milk

Photo credit: The Otesaga Resort Hotel

The 2019 Annual

SPECIAL GUESTS/SPEAKERS

Dealers will convene for the 32nd Annual Northeast Dairy Convention, Sept. 11 to 13, 2019, at the Otesaga Resort in historic Cooperstown, New York. Hundreds of dairy executives, managers, industry vendors and supplier representatives from throughout the Northeast and other parts of the U.S. will gather for

RICHARD “GOOSE” GOSSAGE Major League Baseball Hall of Famer

industry updates and information, panel discussions, networking events and an annual meeting for the Northeast Dairy Foods Association, Inc., and the Pennsylvania Association of Milk Dealers. It won’t be all business, however. A variety of

SUSAN MCLENNAN President of Reimagine PR “How to Get the Workforce You Want in 5 Easy Steps.”

activities and networking events are planned including a tour of the National Baseball Hall of Fame,

KRISTEN PARK

the Fenimore Art Museum and a golf tournament. Check our next edition of Northeast Dairy for

Extension Associate, Cornell University Dyson School of Applied Economics and Management

highlights of the 2019 convention.

“Changes in U.S. Food Retailing.”

62 • Northeast Dairy Foods Association, Inc.

Thank you

to our sponsors! BASEBALL HALL OF FAME TOUR

FENIMORE ART MUSEUM TOUR

GOLF TOURNAMENT HELD AT LEATHERSTOCKING GOLF COURSE

BUSINESS SPEAKER SESSIONS

TED REPPI Engineering and Process Consultant, Emerson Automation Solutions

BARRY COULTAS Digital Transformation Solutions Manager, Emerson Automation Solutions

COCKTAIL PARTIES

“Digital Transformation in the Dairy Industry”

ANDREW NOVAKOVIC, PH.D. Professor of Agricultural Economics, Cornell University “Government’s Future Role in Regulating Dairy Markets.”

COFFEE & MILK BREAKS

ROB BARLEY Star Rock Farms, Chairman of the Pennsylvania Milk Marketing Board and MilkPEP Board Member “Dairy Industry Perspective” NED Magazine | Third Quarter 2019 • 63

ADVERTISERS INDEX Ace Sanitary..............................................................7 Afgritech, LLC.........................................................54 Agri-Mark Cooperative...........................................52 Atlas Automation....................................................31 Dopkins & Company..............................................23 Farm Credit East.....................................................59 GeoSaf....................................................................47 Herbein & Company, Inc........................................55 Jefferson County Local Development Corporation....37 Marathon Energy..................................................IBC Nelson-Jameson, Inc................................................9 PTI / Waldner North America.................................28

Celebrating

Schenck Process LLC..............................................61 Tremcar USA Inc.....................................................54 Tri Tank Corp..........................................................31 Weidenhammer New Packaging, LLC...................BC WestRock.............................................................. IFC

(amazing)

Source: PPAI 2017 Consumer Study

64 â&#x20AC;¢ Northeast Dairy Foods Association, Inc.

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