Cheese Market News as of 2023-09-08
The cheese market is evolving as producers in the Northeastern, Western, and Midwestern regions of the US are struggling to meet the demand of customers. Class I dairy operations have been pulling on milk supplies, leading to an overall shortage of cheese and increased prices.
Northeastern Cheese Production Struggles
Northeastern cheese production has been hampered by persistent labor issues and pauses in manufacturing over the holiday weekend. Cheese makers are struggling to meet market demands, especially those who specialize in mozzarella and pizza. Meanwhile, restaurant demand for cheese in the region is steady, while retail sales remain strong.
Midwestern Cheese Production Declines
Milk availability in the Midwestern states is gradually declining, causing cheese makers to take on more downtime or pay higher prices for spot milk to maintain production schedules. This has led to a decline in production from the winter and spring months when abundant milk supplies enabled cheesemakers to have busy schedules.
Western Cheese Markets Strong to Steady
Cheesemakers in the West report that milk supplies are balanced with their strong and steady production schedules. Both the retail and food service cheese markets remain strong to steady.
As of September 8, 2023, the weekly average for cheese barrels was $1.8575 (+0.0075) and blocks was $1.9500 (-0.0245). Pricing information is updated weekly by the CME.
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