MD_DA840                                                         
DA                                                               
MD DA840 Cheese - West                                           

MADISON, WI.  December 09, 2015 (REPORT 49)                      

WEST CHEESE                                                      

A steady milk supply has helped Western manufacturers maintain active cheese 
production. Strong holiday gift sales are complementing good domestic demand for 
cheese in the retail and food service sectors. Production of cheese used in 
processing however, is outstripping demand. A few industry contacts report challenges 
exist in finding available storage space for some of the cheese barrels and blocks. 
In addition, the large proportion of value within Class III milk prices attributed to 
butterfat has placed pressures on cheese manufacturers. To help improve bottom lines, 
some cheese makers are skimming and selling the cream from milk loads to improve 
revenues. The DMN National Retail Report-Dairy for the week of December 4-10 shows 
the U.S. weighted average advertised retail price for an 8 ounce pack of natural 
shredded cheese is $2.32, up $.02 from last week, but down $.18 from a year ago. 
Packs averaged $2.50 in the Southwest and $2.26 in the Northwest. For 8 ounce blocks, 
the U.S. price is $2.24, down $.09 from last week and down $.31 from a year ago. 
Blocks averaged $2.90 in the Southwest and $2.66 in the Northwest this week. In the 
West, wholesale prices are down $.0075 for process, and down $.0300 for cheddar 
block, cuts, and Monterey jack. Prices are down $.0500 for Swiss cuts. This week, a 
cooperative export assistance program accepted requests for 2.155 million pounds of 
cheese. Dairy Products (NASS) reports total 2015 U.S. cheese production, year to date 
through October, is 9.699 billion pounds, 2.4% above 2014. October 2015 U.S. total 
cheese production, 990.9 million pounds, is 3.8% above September this year. In the 
West, total cheese production for October 2015 was 412.9 million pounds, 1.4% more 
than last month. 

U.S. and West Cheese Production: Percent Change
October 2015 compared to October 2014

	 U.S.	 West
Total Cheese	+ 1.5%	- 1.1%
American	- 0.7%	- 1.9%
Cheddar	+ 0.6%	- 0.4%
Total Italian	+ 2.2%	- 1.5%
Mozzarella	+ 1.1%	- 3.0%
Swiss	+ 9.6%	  na

The CME Group November 2015 monthly average price for barrels, $1.5305, is down from 
the October monthly average of 1.6072, and down from the monthly average of a year 
ago, $1.9326. Blocks' November average price, $1.6176, is down from the $1.6674 
October monthly average and down from $1.9513 one year ago. In CME Group trading 
Wednesday, barrels closed at $1.5000, up $.0050 from a week ago and blocks closed at 
$1.4750, down $.0500. 


WHOLESALE SELLING PRICES:  DELIVERED, DOLLARS PER POUND          
(1000 - 5000 POUNDS MIXED LOTS)                                  
                                                                 
Process 5# Loaf                              : 1.6225-1.8800     
Cheddar 40# Block                            : 1.6550-2.1000     
Cheddar 10# Cuts                             : 1.8350-2.0550     
Monterey Jack 10#                            : 1.8450-2.0050     
Grade A Swiss Cuts 6 - 9#                    : 2.7875-3.2175     


2015 U.S. Cheese and Curd Exports (USDA-FAS)

                 2015 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

October Total        52.1            - 10

TOTAL, JAN - OCT    593.1            - 15

 1 Mexico           167.9            + 13
 2 South Korea      110.5            - 18
 3 Japan             64.6            - 40
 4 Australia         34.0            - 3
 5 China             23.9            - 7


1530CT Mike.Bandli@ams.usda.gov 608.557.7010
USDA/AMS/Dairy Market News, Madison, Wisconsin 
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-home