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September 13, 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 PRECISE, RAPID CHEESE REPORTER SHREDS urschel.com Vol. 144, No. 13 • Friday, September 13, 2019 • Madison, Wisconsin CME Block Cheddar Price Tops Dairy CPI Reaches Highest Level In Over $2.00 For First Time Since 2014 Two Years; Retail Chicago—The price of 40-pound 2013, than reached $2.3600 on last month’s forecast, but its price Cheddar, Whole Milk Cheddar blocks on the CME cash Jan. 31,2014. forecast for butter was reduced. Prices Increase market climbed above $2.00 per It then dropped to $2.1050 USDA’s milk production fore- Washington—The Consumer pound on Monday, the first time per pound by mid-February 2014, cast for 2019 is raised by 100 mil- Price Index (CPI) for dairy and the block market has been above then started to increase, reaching lion pounds from last month, to related products was 218.76 in $2.00 per pound since Nov. 11, $2.4325 a pound on Mar. 24, 2014. 218.0 billion pounds, as stronger August (1982-84=100), up 0.5 2014. The block price then dipped below growth in milk per cow more than percent from July and 1.1 percent $2.00 per pound for two brief peri- The block market closed last offsets forecast lower cow numbers. higher than in August 2018, the Friday just shy of the $2.00 mark, ods in May 2014, and again for two For 2020, the milk production US Bureau of Labor Statistics at $1.9975 a pound. Then on brief periods in July 2014, then forecast is reduced from last month (BLS) reported Thursday. Monday, the block price moved up climbed to $2.4500 per pound by 200 million pounds, to 221.2 That’s the highest level for the to $2.00 per pound, on sales of five on Sept. 19, 2014. That record billion pounds, on slower expected dairy CPI since February 2017, cars of blocks at that price. high for the CME block price still growth in dairy cow numbers; how- when it was 220.55. August was The block price didn’t stop stands. ever, this is partly offset by higher the first time since March 2017 there. On Tuesday, it increased After that, the block mar- forecast milk per cow. that the dairy CPI was above 218. to $2.0525 per pound on a sale of ket fluctuated considerably, but The 2019 and 2020 fat basis August’s CPI for all items was one car at that price, moved up remained above $2.00 per pound import forecasts are lowered on 256.558, down slightly from July to $2.0925 a pound Wednesday until Nov. 12, 2014, when it set- recent trade data and expectations but up 1.7 percent from August on a sale of one car at that price, tled at $1.9900 per pound. of slower butterfat imports. Fat 2018. The August CPI for food at increased to $2.1450 per pound And the block price hasn’t basis export forecasts for 2019 and home was 241.153, down 0.1 per- on Thursday on a sale of one car been back above $2.00 per pound 2020 are reduced from last month cent from July but up 0.5 percent at that price, and rose to $2.2050 until this week. The block market on weaker expected global demand from August 2018. today on an unfilled bid at that peaked at $1.8000 per pound in for US butterfat products. August’s CPI for cheese and price. 2015, $1.9425 per pound in 2016, The 2019 skim-solids basis related products was 229.276, up The last time the block price $1.8500 per pound in 2017 and import forecast is raised from last 0.6 percent from July and 0.1per- moved above $2.00 per pound on $1.7475 per pound in 2018. month on higher-than-expected cent higher than in August 2018. the CME cash market, it remained Meanwhile, in its monthly imports of milk protein concen- The average retail price for a above that level for the better part supply-demand estimates, released trates and a number of other dairy pound of natural Cheddar cheese of a year. Specifically, the CME Thursday, the US Department of products. This strength is expected in August was $5.367, up more block price reached $2.00 per Agriculture (USDA) raised its to carry over into 2020 and the than two cents from July and up pound on Dec. 20, 2013, remained 2019 and 2020 cheese, dry whey almost 25 cents from August 2018. at that level through the end of and nonfat dry milk prices from • See Blocks Top $2.00, p. 16 That was the highest average retail Cheddar price since January, when it was $5.372 per pound. Cheese Importer Details Are ‘Very Important’ When Average retail Cheddar cheese prices by region in August, with World’s Best Cheeses Setting GI Policies For Cheese: Study comparisons to a year earlier and Milwaukee, WI—When estab- from a specific breed of sheep a month earlier, were North- Starts Petition To lishing geographical indica- and aged in the natural caves of east region: $6.11 per pound, Halt Proposed Tariffs tion (GI) policies for cheese, Roquefort-sur-Soulzon in France. down more than two cents from “the details are very important,” Most GI products are known On EU Cheeses according to a study released by their geographic location, • See Retail Prices Rise, p. 9 Armonk, NY—World’s Best recently in Applied Economic Per- which appears in their name. As spectives and Policy. such, prosciutto is not a GI but WPI Utilization Cheeses, a family-owned cheese Source: ADPI , 2018 importer and distributor based The study was written by Peter Prosciutto di Parma is, because here, has initiated a grass-roots Slade of the University of Sas- it refers to a type of prosciutto campaign to halt the proposed katchewan along with Jeffrey D. made in Parma, Italy, following 10.8% US tariffs on imports of cheese Michler and Anna Josephson traditional methods. and other specialty foods from the from the University of Arizona. However, there are a small 21% European Union (EU). The protection of GIs is number of products that enjoy 48.8% Consumers are being invited to an important feature of mod- GI recognition in Europe even sign an online petition at Import- ern trade agreements, the study though the product’s name does 6.6% CheeseLovers.com. The petition pointed out. GIs are symbols or not reference a specific location 12.8% asks President Trump not to impose labels that indicate a product of production; examples include tariffs on EU cheese imports. has a relationship to a particu- cheeses such as Asiago, Feta, Fon- In April of this year, the Trump lar geographic region. This rela- tina, Gorgonzola and Munster. administration proposed tariffs on tionship can reflect a method of The European Union (EU) has Sports Bars production used in that region or continually advocated for stricter cheese, other dairy products and Sports Powders the natural characteristics of the protections of GIs, both at the numerous other products imported Sports Beverages region. For example, Roquefort Prepared Dry Mixes, Blends • See Tariff Petition, p. 4 identifies cheese made using milk • See GI Policies, p. 8 Other Page 2 CHEESE REPORTER September 13, 2019 Past Issues Read this week’s issue EDITORIAL COMMENT or past issues of Cheese Reporter on your mobile phone or tablet by scanning this we are forever grateful, and for- QR code. DICK GROVES ever indebted, to Butch Suemnicht Cheese Reporter Publishing Co. Inc. ©2019 and the other cheese makers who, 57 years ago, saved the Cheese 2810 Crossroads Drive, Suite 3000 Publisher / Editor Madison, WI 53718-7972 Reporter. (608) 246-8430 • Fax (608) 246-8431 Cheese Reporter http://www.cheesereporter.com e: [email protected] DICK GROVES tw: @cheesereporter Publisher/Editor e-mail: [email protected] 608-316-3791 The Cheese Makers Who Saved The Cheese Reporter MOIRA CROWLEY This week’s issue includes the sibilities had passed to the new announced by the board of direc- Specialty Cheese Editor e-mail: [email protected] sad news of the passing of August owners: Cheese Reporter Publish- tors of the Cheese Reporter Pub- 608-316-3793 Albert “Butch” Suemnicht of ing Company, Inc. lishing Co. Inc. Again, there’s no KEVIN THOME Reedsburg, WI, a longtime leader “The new owners are cheese- mention of who those board mem- Advertising & Marketing Director in the Wisconsin cheese industry. makers,” the Statement of Policy bers were. e-mail: [email protected] In addition to serving as presi- continued. “The Cheese Reporter Palmiter purchased the Cheese 608-316-3792 dent of both the Wisconsin Cheese is established as a profit making Reporter Publishing Co. Inc., a BETTY MERKES Classifieds/Circulation Manager Makers Association and the old corporation, but its first objec- couple of years later. The story e-mail: [email protected] Wisconsin Cheese Foundation, tive will be to continue to serve, announcing the sale mentions 608-316-3790 Suemnicht is believed to have and to expand its services if need that the paper had been purchased REGULAR CONTRIBUTORS: been the last of a group of cheese be, so that all the individuals and in 1962 by a group of Wisconsin Jen Pino-Gallagher, Bob Cropp, Neville makers that at one time owned the businesses which are the cheese cheese makers following the death McNaughton, Dan Strongin, John Umhoefer industry can grow and prosper, of Fred Beisser, but once again You can e-mail our contributors at: Cheese Reporter.
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