Cheese consumption in the U.S. is at an all-time high of nearly 42 lbs per person, according to U.S. Department of Agriculture (USDA) data. For comparison, the average American consumed 32.2 lbs of cheese in 2000 and 21.9 lbs in 1980.
Consumer demand for U.S.-produced cheese both at home and abroad continues to grow beyond the present too, according to data from various food industry research firms.
Among other positives for the dairy industry, this is good news for dairy farmers that produce Class IV milk because it’s expected to fetch a premium as consumer demand for cheese continues to increase and because food-makers continue to innovate with new cheese products. The dairy aisle, for example, has the highest gross sales among all grocery store sections.
Foodservice operators, particularly pizza restaurants, too continue to need increasing amounts of cheese to fuel consumer demand for pizza, which continues to grow. Americans love their pizza with cheese on top, as do consumers throughout the world.
Other positive news is that dairy cheese has been purchased by over 60 percent of Americans in the past 12 months, according to industry research firm Innova Market Insights. In contrast, just 7 percent of Americans purchased non-dairy or plant-based cheese over the last year.
On the business front, the majority of dairy dollar investments are moving into the cheese space, which includes the construction of a record number of cheese plants opening this year and into 2025 in the U.S. These new plants, along with existing plants, will require a constant flow of milk from dairy farms.
More than $5 billion in new dairy plant investments and expansions are happening in the U.S. currently and through 2025. The largest of those investments are in cheese plants. New cheese facilities in the Southwest alone are expected to process more than 20 million lbs of milk per day. Experts say that these upcoming developments mark the largest increase in cheese processing capacity ever seen in an 18-month window, and as long as cheese demand continues to grow, the country will need a new large plant about every year.
Here’s a sampling of some of the big cheese plants that have recently been built or currently under construction:
Hilmar, California-based Hilmar Cheese Company is building a $600 million-plus facility in Dodge City, Kansas. The new plant will feature instruments and control systems that minimize energy usage and the amount of water needed to keep the facility clean, and recycled water will clean the plant and equipment, and reclaim waste heat.
Denver, Colorado-based Leprino Foods, a mozzarella, whey protein and dairy ingredients manufacturer, is investing $870 million to build a state-of-the-art manufacturing plant located on 258 acres in East Lubbock, Texas. The new Leprino plant will produce more than 1 million lbs. of cheese daily and the finished products will be distributed throughout the US and internationally.
Hiram, Ohio-based Great Lakes Cheese Company, a manufacturer and packager of natural and processed bulk, shredded and sliced cheeses, is building a 500,000-square-foot facility in Franklinville, New York. The state-of-the-art plant has a capital investment of more than $518 million, according to the company.
Specialty cheese producer Emmi Roth recently opened a new 158,000-square-foot plant in Stoughton, Wisconsin. The cheese plant features a state-of-the-art conversion facility for cupping, bagging, wedging, shredding and crumbling cheeses for numerous brands, according to the company.
Mexican-style cheese and crema maker Cacique Foods recently opened a new plant in Amarillo, Texas, as well as a new corporate headquarters in Irving, Texas.
The facilities under construction are set to open this year or in 2025.
Exports are also helping to fuel the cheese boom.
U.S. cheese exports have increased 688% since 2000, according to the U.S. Dairy Export Council. The opportunity for further export growth is huge as well because the U.S. is the leading global producer of cheese and has the largest supply of cow’s milk in the world.
Cheese exports are projected to be in the 1 billion pound range this year. Mexico, Korea, Japan, Canada and Australia are the 5 top export countries for cheese produced in the U.S.
Continued consumer demand at home and abroad for U.S.-made cheese, combined with all the innovative new cheese products that are being introduced by food-makers – not to mention the nearly-insatiable desire for pizza topped with a lot of cheese – will continue to put cheese in the driver’s seat when it comes to dairy.
Cheese doesn’t stand alone but it’s driving the bus today when it comes to dairy.
My Job Depends on Ag Magazine columnist and contributing editor Victor Martino is an agrifood industry consultant, entrepreneur and writer. One of his passions and current projects is working with farmers who want to develop their own branded food products. You can contact him at: victormartino415@gmail.com.
