Strong pizza sales could nudge cheese price upward

LOUISVILLE, Ky.—If prices for block cheese increase as some market watchers predict, pizza operators may have only themselves to blame.

According to Jerry Dryer, editor of Dairy & Food Market Analyst, strong pizza sales industry-wide are keeping this spring's voluminous milk supplies flowing into cheese vats rather than into other dairy processes, as many expected.

Block prices are holding steady at a highly favorable $1.16 per pound, just 3 cents above the government support price, but at least one market sage Dryer wrote about in his April 21 newsletter, predicts prices will rise to $1.25.

Solid cheese sales at retail outlets through Easter and Passover also helped tighten supplies—albeit modestly—but milk futures point to low cheese prices for at least the next several months.

Read more in our Cheese Market Analysis Research Center.