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April 24, 2020 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 NEW 2-PIECE DESIGN CHEESE REPORTER Precise shreds with Urschel Vol. 144, No.45 • Friday, April 24, 2020 • Madison, Wisconsin USDA To Buy $100 Million A Month Milk Production Rose 2.4% In March; In Dairy Products Under New CFAP Output Declined Solicitations Issued For Shredded Cheddar, On top of these targeted pro- In Just 4 Of 24 grams, USDA said it will utilize Reporting States Process Cheese, Butter For June Delivery other available funding sources to purchase and distribute food Washington—US milk production Washington—US Secretary of supply chains have been impacted to those in need. The agency has in the 24 reporting states in March Agriculture Sonny Perdue last Fri- and will assist producers with addi- up to an additional $873.3 million totaled 18.34 billion pounds, up 2.4 day announced the Coronavirus tional adjustment and marketing available in Section 32 funding to percent from March 2019, USDA’s Food Assistance Program (CFAP), costs resulting from lost demand purchase a variety of agricultural National Agricultural Statistics under which the US Department and short-term oversupply for the products for distribution to food Service (NASS) reported Tuesday. of Agriculture (USDA) will take 2020 marketing year caused by the banks. The use of these funds will NASS revised February’s milk several actions to assist farmers and coronavirus. be determined by industry requests, production estimate down 7 mil- consumers in response to the coro- USDA purchase and distri- USDA agricultural market analy- lion pounds; adjusting February navirus emergency. bution: USDA will partner with sis, and food bank needs. production for the additional day President Trump directed regional and local distributors, Over the last two years, USDA due to leap year causes February USDA to craft this $19 billion whose workforce has been signifi- has purchased Cheddar cheese, revised prodution to be up 1.9 per- immediate relief program to pro- cantly impacted by the closure of process cheese and fluid milk using cent on a per-day basis, rather than vide support to farmers, maintain many restaurants, hotels, and other Section 32 funds. up 2.0 percent on a per-day basis as the integrity of the food supply food service entities, to purchase Also, the FFCRA and CARES initially estimated. chain, and ensure every American and distribute up to $3 billion of Act provided at least $850 mil- Production per cow in the 24 continues to have access to the dairy and other agricultural prod- lion for food bank administrative reporting states averaged 2,072 food they need, USDA noted. ucts to those in need. costs and USDA food purchases, pounds for March, 34 pounds CFAP will use the funding and Under this effort, USDA’s Agri- of which a minimum of $600 mil- above March 2019. authorities provided in the Coro- cultural Marketing Service (AMS) lion will be designated for food The number of milk cows on navirus Aid, Relief, and Economic will procure an estimated $100 mil- purchases. farms in the 24 reporting states Security Act (CARES), FFCRA lion per month in a variety of dairy The use of these funds will be in March was 8.853 million head, and other USDA existing authori- products, $100 million per month determined by food bank need and 64,000 head more than March ties. The program includes two in fresh fruits and vegetables, and product availability. 2019 and 5,000 head more than major elements to achieve its goals: $100 million per month in meat AMS on Monday issued two February 2020. Direct support to farmers: products to provide a pre-approved separate solicitations for dairy Milk production for the entire The program will provide $16 bil- box of dairy and meat products and products for June delivery. Under US during the January-March lion in direct support based on fresh produce to food banks and the first solicitation, AMS is seek quarter totaled 56.0 billion pounds, actual losses for agricultural pro- other no-profits serving Americans up 2.9 percent from the same quar- ducers where prices and market in need. • See Dairy Purchases, p. 15 ter in 2019 (which had one less day). The average number of milk Restaurant Industry Sales Of EU Cheeses With Protected cows in the US during the first Has Lost Two- quarter was 9.37 million head, Names Rose 43% From 2010 To 2017 27,000 head more than 2019’s Thirds Of Workforce; Brussels, Belgium—In 2017, the of agri-food products under fourth quarter and 26,000 head total sales volume of European GIs reached 24.95 billion euros. more than 2019’s first quarter. Blueprint For Union (EU) cheeses with pro- GI products accounted for 54 Recovery Proposed tected names reached 1,243,161 percent of the EU sales value in • See Milk Output Up, p. 6 tons (2.7 billion pounds) and 2017 while protected designation Washington—The entire US the value of sales was 9.03 bil- of origin (PDO) and TSG prod- American Cheese As Part restaurant industry has lost two- lion euros (US$9.8 billion), up ucts represented 38 percent and 9 Of Total Natural Cheese thirds of its workforce, more than 43 percent from 2010, according percent, respectively, of the total Stocks in Storage 8 million employees, as a result to a study released this week by sales value. End of March; billion lbs of coronavirus-related closures, the European Commission. The sales value of agricultural 1.4 according to a new national survey The study collected eco- products and foodstuffs covered 1.3 conducted by the National Restau- nomic data on each of the 3,207 by GIs and TSGs has increased 1.2 rant Association and included in a products registered under the by 39 percent since 2010, the 1.1 new industry recovery plan sent to geographical indication (GI)/ study said. PGI products are the 1 Congress Monday. Traditional Specialities Guaran- most dynamic and their sales 0.9 The restaurant/foodservice teed (TSG) schemes in the EU grew by 60 percent between 2010 0.8 industry lost $30 billion in revenue over the 2010-2017 period. and 2017. TSG products grew by 0.7 in March and is on track to lose The total sales volume of agri- 50 percent since 2011 and PDO 0.6 an additional $50 billion by the cultural products and foodstuffs sales value rose by 15 percent 0.5 end of this month, the Association covered by GIs and TSGs in since 2010. 0.4 noted in a letter to House and Sen- 2017 was 10.0 million tons and Cheeses represented more 0.3 ate leaders. Four in 10 restaurants the total sales value was 27.34 than one-third of the total EU-28 0.2 have closed their doors, some with billion euros, the study noted. 0.1 • See Restaurant Losses, p. 8 Exclusing TSGs, the sales value • See Protected Names, p. 14 0 2014 15 2016 17 2018 19 2020 Page 2 CHEESE REPORTER April 24, 2020 Past Issues Read this week’s issue EDITORIAL COMMENT EDITOR’S NOTE or past issues of Cheese Reporter on CHEESE REPORTER will be making your mobile phone or the entire weekly publication available tablet by scanning this QR code. online for everyone with limited access DICK GROVES Cheese Reporter Publishing Co. Inc. ©2020 to their office during this period. 2810 Crossroads Drive, Suite 3000 Locate the issue by scanning the QR Publisher / Editor Madison, WI 53718-7972 Code on this page or by visiting: (608) 246-8430 • Fax (608) 246-8431 Cheese Reporter http://www.cheesereporter.com e: [email protected] www.cheesereporter.com/ DICK GROVES tw: @cheesereporter weeklyissue.htm Publisher/Editor e-mail: [email protected] 608-316-3791 MOIRA CROWLEY The Dairy Price Support Program In The Era Of A Pandemic Specialty Cheese Editor The recent plunge in CME cash So how is that possible? It’s due the CCC only purchased Cheddar, e-mail: [email protected] 608-316-3793 market prices for 40-pound Ched- primarily to the old dairy price sup- in 40-pound blocks and 500-pound port program (known near the end barrels. Certainly those products KEVIN THOME dar blocks and 500-pound barrels Advertising & Marketing Director has prompted some questions as to of its existence as the dairy product are in surplus, as evidenced by e-mail: [email protected] when block prices last dropped to price support program), which was their current very low cash market 608-316-3792 the $1.00-pound range. The block terminated back in 2014. prices. BETTY MERKES price hit $1.00 back on Apr. 15th History confirms the price sup- But the plunge in food service Classifieds/Circulation Manager e-mail: [email protected] and has been hovering just above port program’s role in keeping sales is likely affecting Mozzarella 608-316-3790 that level ever since. the block market above $1.00 more than Cheddar, so unless or REGULAR CONTRIBUTORS: Initially, we thought the answer per pound during the 1980s and until cheese manufacturers could Jen Pino-Gallagher, Bob Cropp, Brandis might be sometime in early 2009 1990s (in fact, it never dipped switch what they are producing, Wasvick, Dan Strongin, John Umhoefer (during the Great Recession), but below $1.08 per pound during CCC purchases of surplus Cheddar You can e-mail our contributors at: those two decades). USDA raised might not be all that large.
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