We still need the CME
In the conversation about the block and barrel cheese prices that play a role into the Class III price farmers receive for their milk, some might ask if the way cheese value is discovered through the CME remains relevant. After all, the roots of the exchange date back to the early 1900s, when it was mostly used as a way to connect buyers and sellers.
However, the short answer is still yes, the panelists of the March 3
Hoard’s Dairyman DairyLivestream agreed. If we didn’t use the CME, we would need something similar instead, noted the University of Wisconsin-Madison’s Mark Stephenson.
Cheddar cheese pays the bills
Mozzarella is the most commonly produced cheese in the U.S. and the most consumed. So why are the cheese block and barrel values that are used to determine the price dairy farmers receive for their milk based on Cheddar, the second most popular variety with consumers?
“It’s one thing to say, ‘Yes, I would love to see Mozzarella included in the survey and be a part of milk pricing formulas.’ It’s another thing entirely to say there’s a way that we can establish what the going price is for Mozzarella independently of Cheddar,” said Ted Jacoby on the March 3