by Malinda Geisler, content specialist, AgMRC, Iowa State University and revised February 2008 by Diane Huntrods, AgMRC, Iowa State University.

For more information or specific inquiries, please contact Madeline Schultz at schultz@iastate.edu.

 

Overview

All traditional cheeses are made from some type of milk, whether it is from a cow, goat, sheep or even a water buffalo, camel or horse. In the United States, more than 300 varieties of cheese are produced, largely from cow's milk. In fact, the growing demand for cheese has been one of the most significant factors influencing the dairy industry. U.S. cheese production has set new record highs for 16 straight years.
 
Total U.S. cheese production in 2007, excluding cottage cheese, was 9.67 billion pounds, up 1.4 percent from 2006. Of that production, American-type cheese totaled 3.87 billion pounds, down 1.0 percent from 2006, and Italian-type cheese totaled a record-high 4.1 billion pounds, up 3.1 percent from 2006.

Wisconsin continues to lead the nation in cheese production with 2.35 billion pounds, accounting for 26.4 percent of total U.S. cheese production. The state retains its majority share of American cheese production, especially cheddar. Likewise, California continues to rank second, producing 2.29 billion pounds of cheese in 2007 and surpassing Wisconsin in the production of Italian cheese, especially mozzarella. The latter cheese is now the most popular type in the United States. 

Demand

U.S. per person cheese consumption was 32.5 pounds in 2006, a 3.2 percent increase from 2005. Overall cheese consumption continues to increase due to its versatility and adaptability to recipes, more available varieties and more women employed outside of the home. The consumer shift from at-home food preparation to purchases of partially or fully prepared foods has also benefited cheese sales.

Another contributing factor to cheese popularity in the United States has been mainstream acceptance of ethnic cooking, such as Italian and Mexican, which use substantially more cheese. The popularity of Latino foods and Hispanic cheeses is at an all-time high.

Additionally, America’s dairy producers are working with foodservice chains such as Wendy’s, Pizza Hut, Taco Bell and Applebee’s, further increasing demand for cheese. According to Dairy Management Inc., demand for traditional pizza has shifted to other segments such as submarine sandwich shops and quick-casual chains, resulting in increased demand for new types of cheese.

Value-added Products

Increased cheese consumption can be attributed, in part, to growth in specialty, artisanal and farmstead cheeses.

Specialty Cheese
Specialty cheese is a value-added product of high quality and limited quantity. Some of the unique qualities of this cheese include having an exotic origin, distinctive processing, extraordinary packaging or unusual use and channel of sale, with particular attention paid to natural flavor and texture profiles. Specialty cheeses may be made from all types of milk and may include flavorings, such as herbs, spices, fruits and nuts. To be regarded as a specialty cheese, annual production cannot be more than 40 million pounds.

In Wisconsin, specialty cheese production accounted for 16 percent of the state’s cheese production. More than 80 of the state's 115 cheese plants make at least one type of specialty cheese.

Reasons why the specialty cheese market is growing include: more U.S. citizens traveling abroad and trying unique varieties of cheese; U.S. restaurants offering a cheese course (a time-honored European tradition); greater access to a wide variety of cheese; an increased interest in ethnic food; the overall trend of U.S. consumers desiring more variety and robust flavor in food; and education from retailers, foodservice and cheese organizations on the use of unique cheese. Successful merchandising of specialty cheese is a key factor in the growth of the retail market for specialty cheese.
 

Artisan or Artisanal Cheese

The word “artisan” or “artisanal” implies that a cheese is produced primarily by hand, in small batches, with particular attention paid to the tradition of the cheesemaker’s art, thus using as little mechanization as possible in the production of the cheese. These cheeses may be made from all types of milk and may include various flavorings. According to a recent article about artisan cheese in Condé Nast Portfolio, the specialty cheese market (including both U.S. and foreign products) is worth $6 billion a year.

Farmstead Cheese
Farmstead cheese is another leading force behind the growth in traditional European-style cheese sales. Farmstead cheese is defined as an artisan cheese that is produced on a farm using only milk from the farm’s herd or flock. The milk cannot be obtained from any outside source. Farmstead cheeses may be made from all types of milk and may include various flavorings. California has ten farmstead cow’s milk cheesemakers, up from three in 1997.
 

Exports

According to USDA, U.S. cheese exports hit a record high 219 million pounds in 2007, up 40 percent from the previous year. Shipments to Mexico and Japan, the two largest markets, increased 38 percent and 30 percent, respectively. U.S. cheese exports are expected to remain strong in 2008 because of the weak dollar and because the economies of importing countries remain strong. New Zealand and Australia are the world's largest cheese exporters.

Imports

The United States imported 206,000 tons of cheese during 2006. Only Russia and Japan imported more cheese, 230,000 tons and 207,000 tons, respectively.   

Most U.S. cheese imports take place within a rigid quota system at a set tariff rate. Some types of cheese are imported at higher tariff rates. Many cheese importers are paying higher tariffs for over-quota cheese and still profiting.

Sources

American Cheese Society - A listing of farmstead, artisanal and specialty cheesemakers.

Becoming the Big Cheese, Condé Nast Portfolio, 2007.

Cheese: Summary for Selected Countries, Foreign Agricultural Service, USDA, 2006.

Dairy Export Incentive Program (DEIP), Foreign Agricultural Service, USDA.

Dairy Foods Magazine

Dairy Import & Export Data, Foreign Agricultural Service, USDA.

Dairy Products, National Agricultural Statistics Service, USDA.

International Dairy Foods Association

Livestock, Dairy & Poultry Outlook, Economic Research Service, USDA.

Milk Production, National Agriculture Statistics Service, USDA.

National Milk Producers Federation

Real California Cheese, California Milk Advisory Board.
 

U.S. Dairy Export Council