Prairie Farms Dairy and Swiss Valley Farms Announce Merger Agreement
Prairie Farms Dairy and Swiss Valley Farms have entered into a merger agreement. Both companies are farmer-owned dairy cooperatives and recognized leaders within the dairy industry. The combined entity will bring together two well-known brands and will expand sales opportunities for both cooperatives.
Under the terms of the agreement, Prairie Farms will merge the assets of Swiss Valley Farms into Prairie Farms Dairy, Inc. Assets include five manufacturing plants that produce cheese and whey powder located in: Luana, Iowa; Shullsburg and Mindoro in Wisconsin; Rochester and Faribault in Minnesota. Swiss Valley Farms CEO Chris Hoeger will continue to oversee the operation of the plants. The combined company will operate under the name Prairie Farms Dairy, Inc. The terms of the merger agreement must be approved by cooperative members from both companies.
“The merger with Swiss Valley was driven by our commitment to build value for our cooperative members and is consistent with our growth strategy. Swiss Valley’s contributions will allow us to diversify our product portfolio and expand into new markets,” said Ed Mullins, Executive Vice President and CEO of Prairie Farms.
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Chris Hoeger, Swiss Valley’s CEO, stated, “We are very excited to be joining forces with Prairie Farms. This merger offers numerous benefits for our cooperative members and is an ideal opportunity to bring together two industry leaders. We will leverage the strengths of both companies to offer a broader range of products and to enhance and expand relationships with customers.”
As Prairie Farms and Swiss Valley collaborate on pre-merger integration activities, their employees and customers can expect a business-as-usual environment. If approved, the deal is expected to close mid-2017.
Murray’s Cheese Debuts Annelies
By Lorrie Baumann
Murray’s Cheese has introduced a brand new cheese into the American market. Annelies starts with an Appenzeller-type cheese made in Switzerland by Walter Räss of Kaserie Tufertschwil. Räss makes the cheese, ages it in Switzerland for a couple of months and then ships the wheels to Murray’s Cheese in New York, where it’s aged on wood, its rind washed weekly with purified water, for a minimum of nine more months. “The cheese is very pliable early, without a whole lot of depth of flavor. As it ages, around the 13-month mark, we’re getting a lot of the tropical fruit [flavor notes], the salt is more concentrated, and you get more depth from the savory flavors,” said Steve Millard, Murray’s Cheese Vice President of Merchandising and Foodservice.
Murray’s will be the only shop selling the cheese outside the Räss’ village of St. Gallen in Switzerland. The Annelies name comes from Räss’ wife, who shares the name. It’ll be available at Murray’s New York stores and online throughout the year, as supplies allow. “It’s a good amount of cheese, but I fully anticipate us selling through it pretty quickly,” Millard said.
The collaboration responsible for the cheese started with a visit. “The cheesemaker came and visited the [Murray’s] caves a couple of years ago and had a conversation with our cave master,” Millard said. “The two of them really hit it off and got into a discussion about taking some of Walter’s cheeses at a young stage. He went back to Switzerland, and two months later, we got a couple of wheels of cheese wrapped in paper.”
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“We had room in our cave, and we knew from aging Tarentaise that we get from Springbrook that our Alpine cave was developing some really good flavors,” he added. “We wanted to do it, in general, because we didn’t really have any Alpine cheeses that we were aging from a green stage…. We’ve always operated an Alpine cave, but we had previously been taking existing cheeses and aging them further.”
Murray’s cave master set the two wheels from Räss on a wood shelf and wash the rind every week for a year. “Walter came back in July, 2015 and tasted the cheese that had been in the cave for a year. He was totally blown away,” Millard said. “He instantly agreed to send us 30 wheels a month.”
The cheese is now part of Murray’s Cheese’s exclusive Cave Master line, which also includes Greensward. Greensward, a collaboration between Murray’s Cheese and Jasper Hill, shared third place honors with Jeffs’ Select Gouda in the best of show category at this year’s American Cheese Society Annual Judging & Competition. Greensward starts with Jasper Hill’s Harbison and is then washed with cider as it ages in Murray’s Affinage Caves.
New Study Assesses Potential Impacts of Geographical Indications on American Dairy Industry
By Lorrie Baumann
A new study highlights the cost for American cheesemakers and the entire dairy industry if European rules restricting the use of the “feta” and “parmesan” names were to be enforced in the United States as well. The only real good news in the report is that although small and medium-sized firms would be significantly pressured by lower cheese prices, they might be able to survive by marketing their niche and specialty cheeses. The report was funded by the Consortium for Common Food Names, a dairy industry group.
According to Informa Economics IEG, a market research firm specializing in the agriculture industry, the adoption of rules prohibiting American companies from using the “feta” and “parmesan” names would diminish demand for American-made cheeses now sold under those names, and the negative impacts could also affect American-made cheeses labeled Asiago, Gorgonzola, Romano, Havarti, Neufchatel, Fontina and Muenster. Eventually, those restrictions could also affect Brie, Mozzarella, Ricotta, Camembert, Gouda, Raclette, Edam, Provolone, Burrata, Emmentaler and even Cheddar cheeses.
Under European Union regulations, only cheesemakers in the specific geographic area in which certain cheeses originated are allowed to use names that have been ruled as geographic indicators. At present, there are 250 cheeses that have been granted such protection in the EU or are in the process of acquiring it. If U.S. cheese manufacturers were forced to adhere to these regulations, they’d likely be required to suspend use of names that have commonly been used in the U.S. for decades. The report suggests that the only U.S. cheeses that we can assume will never be affected by such restrictions are those sold as blue cheese, Monterey Jack, Baby Jack, Brick, Swiss, Colby, Baby Swiss and processed cheeses like Velveeta or Kraft Singles.
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If these restrictions were to be imposed in the U.S. the immediate impact might be to reduce consumption of U.S.-produced cheeses by 578 million pounds, or 5 percent of total U.S. cheese consumption in 2015. At current market prices, that would be worth about $2.3 billion. Delayed impacts would be even greater, with consumption of U.S.-produced cheeses possibly falling by a projected 1.71 billion pounds.
Those drops in demand for American cheeses would have a significant effect on the U.S. dairy industry as a whole, with the possible effect that milk prices to the dairy farmers could fall by significantly over a 10-year period. That would put some dairy farmers out of business and reduce the size of the nation’s dairy cow herd. “The lower dairy prices do boost domestic consumption of other dairy products, and it does increase exports, but not nearly enough to offset the drop in cheese consumption,” according to the report.
Overall, the consumer reaction if the only mozzarella cheese they could find in their supermarket was imported from Italy and their cheddar could only come from Britain would trigger a sharp contraction in the U.S. dairy industry. The report predicts that dairy farm revenue could fall by 5.5 percent to 12.7 percent over three years, leading to revenue losses of $5.8 billion to $13.2 billion.