Cheese Producers Begin to Feel the Effects of Climate Change

Cheesemakers around the United States are feeling the effects of climate change, with milk availability dwindling in the Upper Midwest and some milk volumes diverted for bottling in the Northeast. Meanwhile, milk output is softening in the West while cheese demand remains strong. This can create a difficult situation for cheesemakers, particularly when the holiday season results in added downtime at plants.

Cheesemakers in the Northeast report consistent labor issues, in addition to their holiday downtime. Despite these challenges, plant managers report positive results from production of cheddar, Colby Jack, and mozzarella cheese. Demand for cheese products from retailers and food service providers is reported as at least steady in the West and Northeast, while export demand hovers at moderate.

Cheese inventories are sufficient to fulfilling current spot demand and contractual obligations in the West, but Cheese producers in the Midwest are growing concerned that an increasing demand for mozzarella and pizza cheese may outstrip their ability to fulfill orders.

Current Market Prices

Weekly average price for cheese barrels are up to $1.8500, and for blocks, they sit at $1.9745. However, at the close of trading on September 1, the price of cheese barrels was at $1.8700 and 40# blocks at $1.9500.

Importance of Up To Date Cheese News

In order to stay on top of the volatile cheese market, it is important to get reliable and frequent information. This will enable cheesemakers to better prepare for the future and adjust operations accordingly. To help producers get the most up to date cheese news, Otter Foods offers an ever-growing library of weekly market news and analysis.

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