Cheese prices have dropped significantly from the highs of 2008.  Today, prices are nearly $0.90 per pound lower than last year’s highest price.  There are several reasons for the decline in prices that has provided welcome relief from almost two years of higher-than-normal prices.  Overall demand for milk and cheese has dropped off in response to worldwide economic conditions.  U.S. prices are also depressed because improving dairy conditions in Australia and New Zealand have made them more competitive on price reducing the volume of imports in the United States.

In fact, the current low cheese prices and high dairy feed cost means most milk producers are making little if any profit.  We can expect some increase in prices over the next few months.  Some of this is the normal seasonal increase that takes place in the summer and early fall as demand for milk products increases and the supply of milk decreases.  In addition, there are programs in place to reduce milk production so that supply and demand are more closely balanced.  Although we may enjoy the low prices in the short term; if dairy farmers are forced out of business in the long term the result may be a long period of sustained higher prices.  The extreme highs and lows create short-term benefits for some and short-term problems for others.  High prices benefit farmers and hurt pizzerias; low prices benefit pizzerias and hurt farmers.  Most would agree that a more even price at modest levels is best for both pizzerias and dairy farmers.

Back to Tips & Recipes