Today block cheddar fell $0.105 on the CME. One insider I spoke with today thinks the bottom will be $1.65 per pound.
Dairy farmers cannot make it on $1.65 block price, given current input costs.
If there is too much cheese, the answer is simple. If you take the amount of milk going to Class III in the federal orders and translate that to nation milk production. Then take that amount times ten pound per hundredweight yield, there is 36% more cheese made in the U.S. given the amount of milk going to cheese.
We need enforcement of cheese standards - plain and simple. The "problem"will then go away. that is, providing the "problem" is too much cheese.