- DAIRY PRODUCTS
- WEB EXCLUSIVES
Convenience is the key. Shred it, grate it, crumble it. Consumers like their cheese ready-to-go, whether it’s natural or processed, though natural is still winning the game.
Unit sales of whole milk declined slightly but dollar sales rose in the last year. Meanwhile, the larger low-fat milk category saw declines in dollars and units.
Frozen yogurt sales continue to rise above the rest, while ice cream sales stay frozen in place. The frozen novelty and ice pop novelty categories were both down.
Sales are up for makers of natural cheese slices, chunks and shreds, while the processed cheese category continues to struggle.
Dollar and unit sales for refrigerated coffee and tea are rising. Research indicates year-round demand for cold, ready-to-drink coffee beverages, especially by Millennials.
The frozen pudding and mousse segment’s sales and units rise, despite the sales struggles of the overall frozen dessert category.
Milk available for cheese making is tightening seasonally across much of the country. Limited spot milk loads for cheese production are available at premiums above Class. Cheese plants that want to run at highest efficiencies are looking for milk or additional solids to bolster production.
Hot, humid weather conditions have accelerated milk production declines in Florida, Arizona and the Midwest. Manufacturing milk supplies have declined across most of the nation; due to milk production declines and Class I demand increases.
Total Organic Milk Products sales for June 2013, 179 million pounds, were up 5.8% from June last year. Organic Whole Milk sales for June 2013, 47 million pounds, were up 8.2% compared with June last year and up 8.9% year-to-date compared with last year.
Cheese shreds in 8-ounce packs were the most featured individual item this period, appearing in 12,755 ad features. The national price averaged $2.36, up 12 cents from two weeks ago. 8-ounce blocks, at $2.43, moved 7 cents higher from two weeks ago. Schools have reopened in the Southern tier of states across the nation sending an increasing number of milk loads to bottlers to meet the increased Class I demand.