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October 4, 2019 d's Dairy orl In W du e st h r t y g W n i e e v Since 1876 k r e l y S Outshred Your Competition CHEESE REPORTER www.URSCHEL.com Vol. 144, No. 16 • Friday, October 4, 2019 • Madison, Wisconsin US To Impose 25% Tariffs On Cheese Production Rose 2.2% In August; Cheese, Dairy Imports From EU Cheddar Output Washington—The US has won tariffs being applied to imports butter substitutes, dairy spreads, Increased 3.3% what the Office of the US Trade from France, Germany, Spain, fats and oils derived from milk, and Washington—US cheese produc- Representative (USTR) is calling and the United Kingdom — the other products. tion during August totaled 1.11 the largest arbitration award in four countries responsible for the Since 2010, the value of US billion pounds, up 2.2 percent from World Trade Organization (WTO) illegal subsidies, the USTR noted. dairy imports from the EU has August 2018, USDA’s National history, and plans to impose tar- Although USTR has the author- ranged from $1.02 billion in 2010 Agricultural Statistics Service iffs on imports of cheese and other ity to apply a 100 percent tariff on to $1.7 billion in 2018. During the (NASS) reported Thursday. dairy products, among other things, affected products, at this time the first seven months of this year, the Cheese production during the from the European Union (EU). tariff increases will be limited to value of US dairy imports from the first eight months of 2019 totaled The WTO decision involves a 10 percent on large civil aircraft EU was $1.04 billion, up 10 per- 8.68 billion pounds, up 0.9 per- US dispute with the EU over ille- and 25 percent on agricultural and cent from the first seven months of cent from the first eight months gal subsidies to Airbus. This week’s other products. last year, according to figures from of 2018. WTO decision follows four previ- The list of products released by USDA’s Foreign Agricultural Ser- Regional cheese production in, ous panel and appellate reports the USTR is broken down into 15 vice (FAS). with comparisons to August 2018, from 2011 to 2018 finding that EU sections, several of which include US cheese imports from the EU was as follows: Central, 512 mil- subsidies to Airbus break WTO one or more dairy products. One during that same period ranged lion pounds, up 1.5 percent; West, rules. The award of $7.5 billion section describes products of Ger- from 212.8 million pounds in 2010 465.8 million pounds, up 3.8 per- annually is by far the largest award many, Spain, or the UK that are to 320.3 million pounds in 2016. cent; and Atlantic, 132.9 million in WTO history, the USTR noted. subject to additional import duties The EU remains of the view pounds, down 0.7 percent. The US will begin applying of 25 percent ad valorem; these that, even if the US obtains autho- August cheese production in the states broken out by NASS, with WTO-approved tariffs on certain products include whey protein rization from the WTO Dispute comparisons to August 2018, was: EU goods beginning October 18, concentrates (HTS subheading Settlement Body, opting for apply- Wisconsin, 290.5 million pounds, US Trade Representative Rob- 0404.10.05) as well as six catego- ing countermeasures now “would up 2 percent; California, 199.6 ert Lighthizer said. The US has ries of cheese (HTS subheading be short-sighted and counterpro- million pounds, down 5.7 percent; requested that the WTO sched- 0406). ductive,” said EU Trade Commis- ule a meeting on October 14 to Several other sections list a New Mexico, 90.5 million pounds, sioner Cecilia Malmstrom. up 20.2 percent; Idaho, 88.1 mil- approve a US request for autho- number of products from 25 EU “Both the EU and the US have lion pounds, up 14.8 percent; rization to take countermeasures member countries that are subject been found at fault by the WTO Minnesota, 59.8 million pounds, against the EU. to additional import duties of 25 dispute settlement system for con- down 2.3 percent; Pennsylvania, The tariffs will be applied to a percent ad valorem; these include tinuing to provide certain unlawful 35.7 million pounds, down 2.7 range of imports from EU mem- 48 categories of cheese, as well as percent; South Dakota, 30.7 mil- ber countries, with the bulk of the several categories of butter, yogurt, • See Tariffs On Cheese, p. 12 lion pounds, up 26.5 percent; Iowa, 27.5 million pounds, up 8.4 per- US Dairy Exports Per Capita Cheese Consumption Set cent; Ohio, 19.5 million pounds, down 9.6 percent; Oregon, 17.2 Rose 3% In August, New Record In 2018: 38.15 Pounds million pounds, down 0.8 percent; Vermont, 12.5 million pounds, up Washington—Per capita US ian cheese has risen by about Imports Increased 9.9 percent; Illinois, 6.7 million cheese consumption last year five pounds since 1998 and thus pounds, down 1.2 percent; and 17%; Cheese Exports was a record 38.15 pounds, up accounts for almost half (48.1 Fell, Imports Rose 0.91 pound from 2017 and the percent) of the per capita cheese • See Cheese Output Up, p. 6 eighth consecutive year in which consumption increase over the Washington—US dairy exports per capita cheese consumption past two decades. during August were valued at Sept. Avg Prices – 2019 vs 2018 set a new record high, accord- Within the Italian cheese cat- Average CME Prices** $487.1 million, up 3 percent from ing to figures released Monday egory last year, per capita Moz- Class 3 and Class 2 Milk Price x 10 August 2018, according to figures by USDA’s Economic Research zarella consumption totaled a $2.30 released today by USDA’s Foreign Service (ERS). record 12.15 pounds, up more Agricultural Service (FAS). Per capita cheese consumption than half a pound from 2017. Per $2.10 United States dairy exports dur- capita Mozzarella consumption has now grown by more than 10 $1.90 ing the first eight months of 2019 pounds since 1998, when it was has risen by about four pounds were valued at $3.86 billion, up 3 27.84 pounds, and has grown by since 1997, when it was 8.16 $1.70 percent from the first eight months almost five pounds since 2011, pounds. of 2018. when it was 33.24 pounds. By contrast, per capita con- $1.50 US dairy imports during August Last year, per capita con- sumption of Italian cheeses other $1.30 were valued at $266.9 million, sumption of Italian-type cheese than Mozzarella last year, at 3.49 up 17 percent from August 2018. reached a record 15.64 pounds, pounds, was down from 2018’s $1.10 During the January-August period, up more than half a pound from record of 3.51 pounds. Per cap- $0.90 dairy imports were valued at $2.09 2017 and the third straight year ita consumption of other Italian billion, up 8 percent from the same $0.70 in which per capita Italian cheese cheeses has increased by more Class 3 Class 2 Blocks** Barrels** Butter** NFDM** period last year. consumption topped 15 pounds. • See August Dairy Trade, p. 21 Per capita consumption of Ital- • See Per Capita Record, p. 8 Page 2 CHEESE REPORTER October 4, 2019 Past Issues Read this week’s issue EDITORIAL COMMENT or past issues of Growth in per capita consump- Cheese Reporter on tion of Hispanic cheese has actually your mobile phone or tablet by scanning this been more consistent over the past QR code. DICK GROVES 20 years than has growth even in Cheese Reporter Publishing Co. Inc. ©2019 per capita Mozzarella consumption ...And so we expect overall future 2810 Crossroads Drive, Suite 3000 Publisher / Editor Madison, WI 53718-7972 consumption growth to be driven (608) 246-8430 • Fax (608) 246-8431 Cheese Reporter in part by continued growth in His- http://www.cheesereporter.com e: [email protected] panic cheese consumption. DICK GROVES tw: @cheesereporter Publisher/Editor e-mail: [email protected] 608-316-3791 Sky’s The Limit For Per Capita Cheese Consumption In US MOIRA CROWLEY USDA’s Economic Research Ser- ian cheeses will resume its upward at the IDF World Dairy Summit in Specialty Cheese Editor e-mail: [email protected] vice on Monday released detailed trend sooner rather than later. Istanbul, Turkey. 608-316-3793 per capita cheese consumption Meanwhile, per capita Swiss That report (available for pur- KEVIN THOME statistics for 2018, and these sta- cheese consumption (this category chase at www.idf-fil.org) includes, Advertising & Marketing Director tistics certainly paint a pretty rosy includes imported Emmenthaler among many other things, an eye- e-mail: [email protected] picture of per capita consumption and Gruyere) last year, at 1.08 opening table showing per capita 608-316-3792 growth in recent years. And these pounds, was at its highest level cheese consumption for roughly BETTY MERKES Classifieds/Circulation Manager and some other statistics point to since 2012 (1.09 pounds), but well four dozen countries, ranging from e-mail: [email protected] some pretty nice potential for fur- below where it was back in 2007 European Union member coun- 608-316-3790 ther growth in the years ahead. (1.24 pounds). Like the other Ital- tries to China and South Korea. REGULAR CONTRIBUTORS: As reported on our front page ian cheese category, per capita con- What the table shows is that, Jen Pino-Gallagher, Bob Cropp, Neville this week, per capita cheese con- sumption of Swiss cheese has had while US per capita cheese con- McNaughton, Dan Strongin, John Umhoefer sumption is pretty impressive com- You can e-mail our contributors at: sumption last year was a record its ups and downs over the years, [email protected] 38.15 pounds, up almost a full but could experience nice growth pared to some well-known dairy pound from 2017’s record and up just be getting back to where it was countries — such as New Zea- The Cheese Reporter is the official almost four and a half pounds just a little over a decade ago.
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