Wednesday, March 16, 2011

Once Again

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.

1 comment:

  1. I'm sure this was unintentional, but if you take only the milk going into Class III and then divide it by the cheese produced in the US, that number would have no relevance. Idaho and California are #2 and # 3 in cheese production in the US and are not in any Federal Order, so counting their cheese lbs in your calculation, but leaving out their milk lbs. wouldn't be a relevant way in which to determine the amount of cheese that should have been produced in the US. I'm sure it was an oversight, but if you do include ID/CA milk lbs. the number makes perfect sense. Cheese standards are enforced, and constantly questioning the quality of our cheese without any real basis will only cause the uniformed to decide not to consume our cheese, now that wouldn 't be good for cheese sales, would it???
    Your more relevant comment above John, which you seem to ignore, is that "$1.65 cheese prices don't work with current input costs" Your right on that one, but it's not the cheese markets' fault, it's the feed price, directly caused by our nations Ethanol Policy, why don't you focus more on that, than on inaccurate and statistically flawed numbers, wouldn't that make more sense, and be more productive?