Cheese and Dairy Markets

4/12/21

Highlights

BUTTER: The weekly average increased +.0226/lb.

CHEESE: The weekly average for blocks increased +0.0476/lb.

Cream is ample in the West, and some of it is moving out of the region and into eastern markets. Ice cream, dips, and whips are pulling some fat away from churns, but butter production is active, and inventories remain stable. Food service demand continues to flourish; restaurant sales are especially strong. Retailers are refilling cooler shelves after consumers took advantage of spring holiday promotions to stock home refrigerators with butter. Some buyers are interested in bulk butter, but cautiously so, as no one can predict when re-opening momentum will plateau. Healthy export interest persists

In the West, demand for retail cheese has held steady this week. Demand for cheese for food service is trending upwards with some contacts reporting that buyers are purchasing further out to hedge against price increases. As more children are returning to full-time in-person schooling, demand for dairy has been increasing. Plenty of milk is available and cheese producers are running at or near capacity. Cheese inventories are mixed. There is some availability for spot purchasers, while some cheese is committed to near-term contract fulfillment. Contacts report that they can find cheese when necessary, but that specific varieties are harder to come by.