Last week I was going through my invoices and noticed my pricing was off when the block was low.I called my sales rep and she stated to me that the Block + agreement was under subsidy pricing.She is saying that when the block falls below 1.20 that no one honors anything under that price.The subsidy level from the government is 1.20 and no will honor the block price under that number. Has anyone else encountered this issue ? I smell a fish but just need to hear from others about this issue.Thanks your friend in pizza.
The government support levels for block cheese is $1.13 per pound, so they are screwing you to some degree. Are you using a Saputo product? In our contract with Saputo the basis price never gets lower than $1.13, the real govenment support price. No other manufacturers that I am aware of utilize this policy.