By LEE MIELKE
Mielke Market Report 

Representatives of the Consortium for Common Food Names (CCFN) were in Geneva last week for the 2014 World Intellectual Property Organization (WIPO) General Assembly Meeting, voicing concern about current proposals to expand the Lisbon Agreement, an international system for geographical indications (GIs) that threatens to severely impede the global use of common names for many cheeses, meats, beverages and other foods.

The WIPO meeting preceded a more specific discussion of WIPO’s Lisbon Agreement proposal later this month by the countries that are signed on to the Agreement as well as interested observers. CCFN is one of the few organizations to whom WIPO has granted "observer status" in the Lisbon Agreement Working Group, which allows CCFN to make comments during the upcoming October proceedings. Officials from the U.S., Australian and New Zealand governments are among the other observers.

"The U.S. government, along with officials from Australia, Argentina, Chile, Colombia, New Zealand and Uruguay, among other countries, is working hard to protect the rights and interests of food producers around the world by crying foul to the proposed, flawed approach to the Lisbon Agreement now under discussion," said CCFN Executive Director Jaime Castaneda.

"CCFN is joining in that chorus because the agreement as currently drafted is overly broad and vague and would not safeguard common food names used by countless food producers around the globe. Expansion of the Lisbon Agreement poses a high risk of violating existing trade commitments and posing significant economic costs on many nations."

The Lisbon Agreement, first activated in 1966, is a voluntary system where countries within the pact add names that they would like protected to a general list and other nations agree to protect those names. Only about 30 nations, the majority from Europe, have signed on.

To date, the agreement has not dramatically impacted global trade because of its relatively limited membership and product scope. However, the proposed revisions to the program, which the WIPO group would like to finalize this month, would seek to dramatically expand the registration of common names (as illegitimate GIs) across many more countries, thereby putting at greater risk the markets developed by many small food producers in developing countries and throughout the world.

Because these restrictions on the use of registered names automatically kick in after a year, the revised Lisbon Agreement could cause immediate, multiple trade issues around the world concerning the protection of common food names, potentially leading to new restrictions on sales of generically named products in dozens of countries.

"There is a positive way forward on GIs," said Castaneda. "There are ways to protect the names of geographical specialty foods and beverages without impeding the rights to use generic food names. We urge WIPO to insist that Lisbon Agreement proponents go back to the drawing board to better balance these twin concerns."

The USDA announced the September Federal order benchmark Class III milk price Wednesday, Oct. 1, at a record high $24.60 per cwt., up $2.35 from August, $6.46 above September 2013, $2.21 above the comparable California 4b price. The price equates to about $2.12 per gallon.

That propels the 2014 Class III average to $22.72, up from $17.76 at this time a year ago, $16.54 in 2012, and $18.28 in 2011. That’s the good news. Class III futures portend declines ahead. The October Class III contract settled Friday, Oct. 3, at $24.27; November, $21.74; and December, $20.10.

The September Class IV price is $22.58, down $1.31 from August but $3.15 above a year ago. The nine month Class IV average now stands at $23.20, up from $18.49 a year ago, $15.23 in 2012, and $19.48 in 2011.

The NDSPR-surveyed cheese price used to calculate this month’s milk prices averaged $2.3472 per pound, up 24 cents from August. Butter averaged $2.8525, up 33.2 cents. Nonfat dry milk averaged $1.4718, down 31.7 cents, and dry whey averaged 67.25 cents, down 1.6 cents.

The California Department of Food and Agriculture announced its September Class 4b cheese milk price at a record high $22.39 per cwt., up $2.43 from August and $5.74 above September 2013. That puts the 2014 Class 4b average at $20.53, up from $16.10 at this time a year ago, $14.69 in 2012, and $16.48 in 2011, and $2.19 below the Federal order average.

The September 4a butter-powder price is $22.72, down $1.11 from August but $3.25 above a year ago. The nine month Class 4a average now stands at $23.09, up from $18.27 a year ago, $14.88 in 2012, and $19.24 in 2011.

While Federal order and California milk prices set record highs this week, dairy product prices continue to plunge. But they ended the week on an up note Oct. 3, as the market ponders whether it perhaps overreacted on the way down and weighs Thursday’s Dairy Products report.

The block Cheddar closed Oct. 3 at $2.15 per pound, up a penny on the day and the first positive move since Sept. 19, but down 13 cents on the week and 38.5 cents above a year ago. The Cheddar barrels finished at $2.17, up 7 cents on the day, but down 13 cents on the week, 42 cents above a year ago, and 2 cents above the blocks. The blocks have lost 30 cents since they set a record high $2.45 per pound on Sept. 19. The barrels have shed 32 cents since they set a new high of $2.49 on Sept. 22.

Generally, a penny movement on cheese equates to about 10 cents on the milk price. Nine cars of block traded hands on the week and five of barrel.

The lagging NDPSR-surveyed U.S. average block price hit $2.3746 per pound, up 3.3 cents. Barrels averaged $2.4277, up 5.1 cents.