With the new farm bill still on the table less than a week before the Congressional Christmas break, some pizza operators are wondering how much cheese prices could rise if a deal isn't reached before the New Year.

WNCT, a North Carolina TV station, interviewed Poor Boy's Pizza and Pub owner Ken Auker about the gridlock. He said if the farm bill doesn't get passed before Jan. 1, the price of milk could potentially double, which would double his monthly cheese budget and eat into his business' profits. He currently spends about $5,000 a month on cheese.

"It's a fluctuation market, price of milk goes up, price of cheese follows instantly," he told the station. "That would wipe out my bottom line. Restaurants like this run on a 2 to 3 percent net profit if you're successful, if we're looking at another $5,000 per month in cheese prices, that kills my profit."

Congress' debate stems around how much spending to cut from SNAP — or the food stamp program. If the gridlock isn't resolved by Jan. 1, a law written in 1949 will be put back into place. According to the story, the government in 1949 helped a "disorganized dairy industry by paying more than it does now." Therefore, if the old law goes back into effect, the government will be forced to buy milk at a higher price than necessary.

There has been talk of an extension of the current farm bill, but no progress has been made yet. A vote could come this week.

Read more about supply chain management.

Related Content

User Comments – Give us your opinion!
Products & Services

Remote Service | Content Management Service

http://global.networldalliance.com/new/images/products/6685.png

6685/Remote-Service-Content-Management-Service

Call Center Ordering

http://global.networldalliance.com/new/images/products/5939.png

5939/Call-Center-Ordering

Quad Core Menu Board Media Player - $199

http://global.networldalliance.com/new/images/products/6679.png

6679/Quad-Core-Menu-Board-Media-Player-199

Custom Digital Signage Templates

http://global.networldalliance.com/new/images/products/6683.png

6683/Custom-Digital-Signage-Templates

Advanced Wireless

http://global.networldalliance.com/new/images/products/6635.png

6635/Advanced-Wireless

FireFly Point-of-Sale

http://global.networldalliance.com/new/images/products/4282.png

4282/FireFly-Point-of-Sale

Operations Support

http://global.networldalliance.com/new/images/products/6409.png

6409/Operations-Support

Get more from your restaurant POS with online videos and tutorials

http://global.networldalliance.com/new/images/products/1294.png

1294/Get-more-from-your-restaurant-POS-with-online-videos-and-tutorials

Sourcing

http://global.networldalliance.com/new/images/products/6407.png

6407/Sourcing

MVR Reports

http://global.networldalliance.com/new/images/products/MVR_Report_iix.gif

1252/MVR-Reports

Digital Menu Boards and ROI
Request Information From Suppliers
Save time looking for suppliers. Complete this form to submit a Request for Information to our entire network of partners.