Cheese Prices?

This is getting ridiculous… i’m up to 2.63 a lb for grande mozzarella…

Block market closed at $1.95+ today. This is sure to be a record high soon. We’re not yet to the seasonal point that prices typically start creeping up. Expect the prices to keep increasing. Price your menu accordingly and make sure you use portion control standards. Keep consistent, using the same quality cheese and same portion standards. Maybe check with your supplier about paying a specific amount over block market, so they aren’t just raising your prices on a whim.

How does the block price for cheddar cheese figure into the price of mozzarella?..RCS…

Reason; ethanol(gasoline) derived from corn. Its just beginning. New ethanol refoneries are popping everywhere. they are taking a lot of corn from the food market. almost all of the food catagories are affected(controld) by corn price. Milk,cheesr,beef(corn feed for cows) soda(corn syrup) candy,cereal,burritos,tacos, you name it.
I believe the grocery, food prices are bound for massive price increase just like gasoline simply because we are putting our food in the tank now. and its just beginning :shock:

P. S. I do not recall the link. I red somewhere that just recently they had social unrest in mexico over tortilla prices skyrocketing and government had to intervene. same reason, US refineries buying their corn.

   The cars are competing for human food now!

Its just that it has become the industry standard(in the states) to base cheese prices on this particular scale. It really has nothing to do with the cost of Mozzarella, or even the supply and demand for it. Most every manufacturer sell their cheese based on the CME chedder block prices. Our distributor buys our cheese from the manufacturer at 2 cents above the block price, and sells to us for 17.5 cents over block. Most all distributors sell their cheese based on this market, but if you don’t have a contract with them to sell at X amount over block you will see your prices go up quickly in response to the market, but come down slowly when the market decreases. At least here we don’t have to deal with the gov’t setting to prices at $4+/LB like you guys north of the border.

As with most trends like this that show surprise market influences, there will be a regression to the mean. As production ramps up, and more farm land is devoted to the new cash value of corn, the supply/demand curve will straighten itself out. AND if the government will ease off the corn subsidies, that will further incraese available corn in the marketplace.

Sit tight and wait for the market pressures to lean back on the corn producers. The Beef and Dairy lobbies are not without some influence in the economy these days.

The dairy lobbies are loving this trend, and are probably not likely to fight rising feed prices. They have been able to increase cheese prices by over 60% over last year based on the cost of feed. I doubt that the cost of feed comes close to increasing their production costs by a fraction of this amount.

"As production ramps up, and more farm land is devoted to the new cash value of corn, the supply/demand curve will straighten itself out. "

I realy hope so. outrageous gasoline and elecricity in california prices never came back once they shot up.

it is all insaine…the “trickle down effect” is insaine…it is just another piece of “excuses” for someone to stick it to the little guy…the minute the weather channels here “smell” snow they make a BIG issue and everyone runs to wally world and “stocks” up for the blizzard of the century and nothing happens - but someone profited from that…now the food suppliers are not only gauging us on cheese they are raising prices on everything that is our big purchase…then of course BLAME it on FUEL…when MOST of them BUY fuel in BULK and DO NOT pay the same price the little guy pays at the pump. BUT your rep is making more in commision and laughing on the way to the bank when they just raised my food cost $500 in the last 3 weeks…and keep raising it…its the all american way folks - GREED…just remember that the cheese you are buying today - was not made yesterday…it was made when cheese a month or so ago was 40 cents less a LB…

GOOD LUCK…[/b]

Wow. I can certianly understand and support the anger and frustration of the prices creeping up. Makes it harder for us to make a profit margin without raising prices.

I am sort of surprised by the greed message, though. I personally could not wake up each morning and drag my carcass down to the shop if I thought every vendor, producer and supplier out there was only drawing a breath to rip off me and my colleagues. That would mean that MY SHOP is only in business for greed and “sticking it to the little guy”. After all, our customers are littler guys than we are. We all generally pay more today than we did 10 years ago . . . the market is a changing place.

I certianly dislike price increase as much as the next person . . . . like my customers . . . but I also understand that goods and services cost more and more, and everyone else has to make a living too. There are some price increases that don’t make sense to me, but I trust the market pressures to levelize the playing field. They generally have for me when there is an opportunity. Monopolies, government subsidies, and legislation changes all impact the bigger picture.

I suspect that it is just a different viewpoint that I work with . . . selling a product in an open marketplace for the price that I can secure for that product is not and evil, wicked or greedy thing to do. It’s a business decision, and the people purchasing products are all quite free to decide not to purchse the products at the advertised pricing. Cheap cheese is really good for my business, but it is by no means my “right” as a pizza guy (my choice of words, not anyone else’s).

My alternative is to go and milk cows, grow wheat, and process all my own ingredients. Since I cannot do that, I buy in the market and find the best deals I can for the products I want to use.

BTW . . . commodity market prices are sort of ‘delayed’ in that we pay today’s pricing regardless of yesterday’s raw ingredient costs . . . it keeps the market flowing and gives dairies $$$ to buy milk today to make more cheese to sell next month at the prices set later.

You guys I really feel for. The restrictive evironmental regulations out there make a prettier place sometimes, but certainly drive up costs for goods and services. Every time a new energy production or lean air standard is passed, the utilities climb.

Those new minimum wage laws are gonna take bites out of many of our pocketbooks as producers of raw goods pay higher and higher labor costs . . . plus our own increased labor costs. I hope CA is already higher than the Federal new wage so that you guys don’t get hit with that as well.