• Cheese prices dropping as weather warms

    Tags: Cheese

The price of block cheese dropped 5.5 percent on the Chicago Mercantile Exchange to $1.29 a pound on Jan. 29 as concerns of a milk glut circulated throughout the dairy industry.

Dairy analysts say that the unusually warm weather -- 50 to 60 degrees in northern states where average January highs typically are in the 30s -- has trigged an early "spring flush," when milk cow output rises with the arrival of spring.

"Cows don't use calendars, so they don't know it's not April or May in much of the country," said analyst Jerry Dryer, during his Jan. 29 Webcast report on Dairyline.com. "In cow time, it's April. ... There's already cream everywhere. Three big manufactures told me last week that they had tankers of cream sitting in their yards, waiting to be unloaded."

Dryer said the unexpected boom in milk output hasn't resulted in distressed pricing yet, but that it could very soon.

Regarding cheese production, Dryer said he's optimistic that consumption will keep pace with extra production.

"I think we'll see some weaknesses in prices in the short term, although probably not a great deal," said Dryer, whose report was Webcast before the market's close.

On Jan. 29 the price fell 5 cents, following a 4 cent drop the day before. After holding below $1.30 for nearly a month, the price crept up to $1.39 through mid-January, before dropping again Jan. 25.

Related Content

User Comments – Give us your opinion!
Products & Services

Features

http://global.networldalliance.com/new/images/products/4541.png

4541/Features

Group Purchasing Services

http://global.networldalliance.com/new/images/products/6403.png

6403/Group-Purchasing-Services

Restaurant technology news, trends & best practices

http://global.networldalliance.com/new/images/products/5079.png

5079/Restaurant-technology-news-trends-best-practices

Digital Menu Boards

http://global.networldalliance.com/new/images/products/6681.png

6681/Digital-Menu-Boards

PeopleMatter LEARN™

http://global.networldalliance.com/new/images/products/4627.png

4627/PeopleMatter-LEARN

Food Cost Management

http://global.networldalliance.com/new/images/products/6401.png

6401/Food-Cost-Management

Put your menu in your customers' pocket

http://global.networldalliance.com/new/images/products/1293.png

1293/Put-your-menu-in-your-customers-pocket

Mexican-Style Meats

http://global.networldalliance.com/new/images/products/6795.png

6795/Mexican-Style-Meats

Free Menu Board Media Player Promotion

http://global.networldalliance.com/new/images/products/6675.png

6675/Free-Menu-Board-Media-Player-Promotion

Pizza POS Software

http://global.networldalliance.com/new/images/products/5937.png

5937/Pizza-POS-Software

Fast Casual Executive Summit
Request Information From Suppliers
Save time looking for suppliers. Complete this form to submit a Request for Information to our entire network of partners.