Supply and demand are constantly affecting pricing in the dairy industry.
Updated every Friday, IPAP’s weekly market recap report offers the latest figures, insight and trends, courtesy of the experts at the U.S. Department of Agriculture. IPAP’s report presented here hones in on barrel cheese, block cheese and butter.
March 30-April 3, 2020 (Week 14)
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|Market||Mar. 30||Mar. 31||Apr. 1||Apr. 2||Apr. 3||Weekly Avg.||Previous Avg.||Prior Year|
“Cheese inventories are growing. Even with some plants closing while others run lighter crews, the milk keeps coming in. Milk prices reported were solely discounted, between $4 and $5 under. Reported offers were lower in price. Food service demand has been hamstrung by COVID-19 related closures. Retail orders remain steady to slightly lower. Western contacts say there are few issues with transport at this time. Undoubtedly, cheese contacts are seeing the precipitous drops of cheese prices, blocks in particular this week. The pandemic is creating anxiety among nearly all dairy market participants, and cheese producers are no exception.”
“With most schools, restaurants, and hotels closed across the country due to COVID-19, an oversupply of raw milk has become a handling problem for producers and processors. Churners are helping to clear large amounts of cream by running at full capacity, but cream supplies exceed their manufacturing needs, resulting in a cream devaluation. While bulk butter requests have virtually vanished from some end users, retail demand for print butter continues being extremely strong during this juncture. Across the country, this week, bulk prices are ranging from 2.0 cents below the market to 7.5 cents above the market.”
Sources: USDA Dairy Market News/CME Group