MD_DA840

Cheese - Western U.S.

Report 12 - Released on March 20, 2019

Western cheese demand is steady in domestic channels and some export markets. Manufacturers
say there is little push back on contract shipments. However, new business has been slow to
develop. Cheese prices are supported, and the gap between barrels and blocks is narrowing.
Heavy cheese inventories currently do not seem to be a major concern for processors. Demand
appears to be able to keep pace with production. Cheesemakers are hopeful that the various
spring basketball tournaments pull large amounts of mozzarella on pizza, and favorable
spring weather launches the grilling season in earnest. Manufacturers say they are running
near full capacity and milk intakes are climbing. In some parts of the region, spring flush
is at hand.

National Retail Report Dairy ą Cheese Summary
Advertised Prices at Major Retail Supermarket Outlets ending during the period of 3/15/2019
to 3/21/2019
Cheese 8 oz. Blocks Weighted Average Price
National This Period Last Week Last Year
Organic n.a. n.a. n.a.
Conventional $2.06 $2.33 $2.26

Regional (Conventional) Wtd. Ave. Low High
Alaska n.a. n.a. n.a.
Hawaii n.a. n.a. n.a.
Northwest $2.10 $1.50 $2.99
Southwest $2.26 $1.67 $3.00

Cheese 8 oz. Shred Weighted Average Price
National This Period Last Week Last Year
Organic $3.49 n.a. n.a.
Conventional $2.05 $2.44 $2.23

Regional (Conventional) Wtd. Ave. Low High
Alaska $4.29 $2.50 $4.99
Hawaii n.a. n.a. n.a.
Northwest $2.31 $1.99 $2.50
Southwest $2.30 $1.67 $3.00

Western Wholesale Price Adjustments
In the West, wholesale prices were up $.0150 for process, but down $.0225 for cheddar
block, cuts and Monterey Jack. Swiss cut wholesale prices are unchanged from the previous
week.
WHOLESALE SELLING PRICES: DELIVERED
DOLLARS PER POUND(MIXED LOTS (1000-5000 POUNDS))

Cheddar 10 pound Cuts 1.8425-2.0625
Cheddar 40 pound Block 1.6625-2.1050
Monterey Jack 10 pounds 1.8525-2.0125
Process American 5 pound Loaf 1.5100-1.7650
Swiss 6-9 pound Cuts 2.5800-3.0100

Information for the period March 18 - 22, 2019, issued weekly

Secondary Sourced Information:

Export Assistance CWT
This week, a cooperative export assistance program accepted requests for export assistance
on contracts to sell 2.302 million pounds (1,044 metric tons) of cheese. So far this year,
the program has assisted member cooperatives who have contracts to sell 24.738 million
pounds of American-type cheeses in export markets.

When combined with butter and whole milk powder, the program has assisted members with sales
of 419.3 million pounds of milk on a milkfat basis.

Dairy Products (NASS) ą Cheese Summary
Released March 14, 2019, by the National Agricultural Statistics Service (NASS),
Agricultural Statistics Board, United States Department of Agriculture (USDA).

Cheese Production ą United States: January 2018 and January 2019
Monthly Production (1000 pounds) Percent Change from
Total Cheese 1 Jan. Dec. Jan. Jan. Dec.
Region 2018 2018 2019 2018 2018
United States 1,096,520 1,092,970 1,100,458 0.4 0.7

Atlantic 145,345 133,604 138,839 -4.5 3.9
Central 496,794 491,389 492,429 -0.9 0.2
West 454,381 467,977 469,190 3.3 0.3

Monthly Production (1000 pounds) Percent Change from
American Cheese 2 Jan. Dec. Jan. Jan. Dec.
Region 2018 2018 2019 2018 2018
United States 433,670 425,245 438,714 1.2 3.2

Atlantic 27,431 28,660 29,847 8.8 4.1
Central 216,212 211,649 215,921 -0.1 2.0
West 190,027 184,936 192,946 1.5 4.3

Monthly Production (1000 pounds) Percent Change from
Italian Cheese Jan. Dec. Jan. Jan. Dec.
Region 2018 2018 2019 2018 2018
United States 474,348 479,405 480,742 1.3 0.3

Atlantic 62,645 60,640 60,774 -3.0 0.2
Central 191,464 185,607 189,504 -1.0 2.1
West 220,239 233,158 230,464 4.6 -1.2

Cheese Production ą Cumulative Production January - January
Cumulative Production Percent Change
(1000 pounds) from
Cheese Type 2018 2019 2018
Total cheese 1 1,096,520 1,100,458 0.4
American Cheese 2 433,670 438,714 1.2
Italian Cheese 474,348 480,742 1.3

1/ Excludes cottage cheese.
2/ Includes cheddar, colby, washed curd, stirred curd, Monterey and jack.

CME Close
In CME Group trading Wednesday, barrels closed at $1.5450, compared to the weekly average
price of $1.4350 from last week. Blocks closed at $1.5825, compared to the weekly average
price of $1.5380 from last week.

Published by:
Dairy Market News - Madison, WI
MIKE BANDLI, (608)422-8592
Email: mike.bandli@ams.usda.gov

Additional Dairy Market News Information:
Dairy Market News (DMN) by Phone: (608)422-8602
DMN Website: https://www.ams.usda.gov/market-news/dairy
DMN MARS (My Market News): https://mymarketnews.ams.usda.gov/