Many times during a client discussion, a term is used and they will ask what a term refers to. I believe that when a person decides to venture into the world of pasteurized dairy and nondairy product manufacturing, they should be familiar with terminology involved in a daily conversation. With that said, I have assembled a list of terms that are commonly used in the dairy industry manufacturing and sales.
Be familiar with the terms so you are not completely in the dark when speaking with a co-pack manufacturer, distributor, plant manager, sales force or trucking company.
Product
- Butterfat – The fatty portion of milk
- Milkfat – The fatty portion of milk
- Overrun – The percentage of air incorporated into ice cream during the freeze process
- Total solids – A measure of the combined content of all inorganic and organic substances contained in a liquid in molecular, ionized or micro-granular suspended form
- Emulsifier – a substance that stabilizes an emulsion, in particular a food additive used to stabilize processed foods.
- Emulsify – A suspension of tiny droplets of one liquid in a second liquid.
- Stabilizer – Substance used to keep a liquid steady or stable
- Gums – Controls the structure and mobility of liquid
- Inclusion – Pieces of nuts or candy
- Shrink – Waste, typically calculated as an acceptable percentage of loss during production over an annual basis
- COG – Cost of Goods, the total cost of a product that does not include profit margin
- CWT – Hundredweight, commonly equivalent to 100 pounds in the US equals 45.359 kilograms in the U.S, also known as the centum weight
- Kg – Metric weight, a unit of mass equal to 1000 grams: the basic unit of mass in the International System of Units
Manufacturing
- Conventional Pasteurization – a process of cooking and cooling in a vat vessel which kills microbes, mainly bacteria in dairy and beverage. US FDA legal, heating fluid dairy to 145 °F for 30 minutes
- HTST Pasteurization – Fluid dairy is forced between metal plates & through pipes heated on the outside by hot water, milk heated to 161 °F for 15 seconds.
- UHT – Ultra-heat-treating, processing holds the milk at a temperature of 284 °F for four seconds, UHT processing milk is sterilized and not pasteurized. This process lets consumers store milk or juice for several months without refrigeration
- ESL Pasteurization – A microbial filtration step and lower temperatures than UHT milk. Since 2007, it is no longer a legal requirement in Europe to declare ESL milk as ultra-heated, consequently it is now often labeled as “fresh milk” and advertised as having an “extended shelf life,” making it increasingly difficult to distinguish ESL milk from traditionally pasteurized fresh milk.
- Homogenization – A process by which the fat droplets from milk are emulsified and the cream does not separate
- Fruit Feeder – Automated bin which evenly disburses candy, nuts and other inclusions into ice cream
- Variegator – Swirl viscous flavors and purees into ice cream using a pump
- CIP – Clean in place (closed cleaning circuit)
- COP – Clean out of place (open cleaning system)
- MSDS – Material safety data sheet – accompanies an ingredient to support product identity
- GMP – Good Manufacturing Practices – Best practices in manufacturing
- QA – Quality assurance
- QC – Quality control
- SQF – Safe Quality Food Institute – Quality management standard
- HACCP – Hazard Analysis Critical Control Points
- ISO 9000-1 – International Organization for Standardization – Quality management standards
- CCP – Critical control points
- FSIS – Food Safety and Inspection Service / USDA
- Plant Cost – A cost per unit value, typically comprising of total operating expense (overhead) divided by annual unit output
- Julian Code – A continuous count of days and fractions since noon Universal Time on January 1, 4713 BC (on the Julian calendar)
Packaging
- Aseptic Fill – Also called the “perfect fill” achieving contamination free filling eliminating harmful bacteria, viruses, or other microorganisms
- Irradiation – Used to sterilize packaging to attain 100% bacteria kill prior to aseptic fill
- HDPE – High density polyethylene, a translucent package to hold pasteurized liquids
- PET – Polyethylene terephthalate, used in clear plastic bottles to hold beverages
- PVC Shrink Film – Polyvinyl chloride and ideal for high speed applications
- Bundle Shrink Wrap -Polyethylene film primarily used to over-wrap multiple units and designed to leave both bundled ends open
- NLEA – Nutrition Labeling and Education Act of 1990, requires nutrition labeling of most packaged foods to list all nutrient content claims (like low fat) and health claims to meet FDA regulations
- UPC – Universal Product Code, also termed barcode, 10 numeric digits identifying the manufacturer and product size
- SKU – Stock Keeping Unit, a product identification code for a retail merchant to help track the item for inventory
Logistics
- LTL – Less Than Truckload shipping or less than load, transportation for relatively small pallet freight
- FOB – Free on Board or point at which the buyer takes possession of goods
- Refer Unit – The refrigeration system used on trailer trucks to maintain cool or freezing temperatures in a trailer
- Distributor – An independent shipping and delivery service that purchases from the manufacturer to sell to customers
- Over the Road – Transportation (Semi Truck) between cities or states
- Pack & Pedal – A local delivery service where the driver also rotates and places product on the retail store shelf
- Skid – A wooden or plastic pallet
- Turns – The number of times a product comes in (purchased) and out (sold) in a retail store during a week or month time period
- FIFO – First In First Out, product rotation term where new product is stocked at the back of the shelf as opposed to simply placed in front of older product
- Freight Forward – Or forwarding agent, a person or company that organizes shipments for individuals or corporations to move goods from the manufacturer to a customer or final point of distribution.
Sales
- Spiff – An immediate bonus for a sale
- Broker – An independent agency that is paid commission by the manufacturer for selling and representing their products
- Demo’s – Demonstrating and sampling products directly to the customer, a face to face service to promote and sell products
- Mom & Pop – Small business usually family owned and operated
- SRP – Suggested Retail Price, the amount seen on a product or retail shelf, negotiated price by the manufacturer and retailer
- MSRP – Manufacturer’s Suggested Retail Price, a price established by the manufacturer
- B2B – Business to Business, a manufacturer selling directly to another company to sell to their customers
- B2C – Business to Consumer, a manufacturer selling directly to the consumer
- Margin – The difference between a product or service’s selling price and the cost of production.
- Markup – The amount added to the cost price of goods to cover overhead and profit.
- ROI – Return on Investment, typically calculated to establish the length of time an investor can get their money back plus interest
- Par Level – Periodic Automatic Replenishment, the minimum quantity of an item stocked, which will be automatically reordered when the level falls below a preset level
- PO – Purchase Order, a commercial document issued by a buying customer to a selling manufacturer, indicating types, quantities, and agreed prices for products or services