- Total cheese use rose 2.2% YoY in August, marking the sixth month in a row of gains and driving YTD volumes up 1.2% compared to 2023. So far this year, total cheese has been primarily supported by greater demand for Other-than-American cheese, such as Mozzarella, and is reflected in the higher production of other-cheese, e.g. Italian and Colby, varieties in 2024.
- Other-cheese usage continues to rise posting a YoY gain every month this year through August. Domestic consumption makes up the bulk of Other-cheese demand, and it marked a 1.3% jump from the prior year as Americans' taste for other cheese grows. The onset of the fall sports season also typically boosts pizza cheese demand and may have contributed here. Similarly, larger shipments of fresh cheese and finished goods (grated category) helped propel “Other” exports UP 23.5% YoY.
- CME spot barrel cheese marked an all-time high of $2.6225/lb. on Sep 18, as months of limited production crashed into rising domestic demand. Quick-service meal deals drove greater foot traffic and likely contributed to improved American cheese consumption, which rose 1.2% YoY- the first annual increase in 2024. Although exports sank 15.4% YoY, they make up just 3% of total American cheese disappearance.
- Total butter utilization rose versus 2023 for the second consecutive month as stateside and international demand grew. While the MoM gain of 0.3% was below the five-year average of +6.7%, July posted an impressive number and increased counter-seasonally from June. This made it difficult to increase the MoM substantially from July to August.
- Year-to-date, domestic disappearance is trending 45 million pounds (+3.2%) ahead of the same period in 2023 and on track to be an annual record. July and August’s usage numbers were monthly highs (back to 2014), as Americans’ insatiable appetite for all things butter persists.
- Exports have improved, even though CME spot prices have traded at $3.00/lb. or more for almost half of 2024. While international shipments are not back to 2021 or 2022 levels, they are regaining some territory, posting three months of double-digit YoY increases. Still, the year started out rough, and 2024’s YTD trails 2023.
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