MD_DA811                                                         
DA                                                               
MD DA811 Cheese - Foreign Type                                   

MADISON, WI.  February 08, 2012 (REPORT 6)                       

FOREIGN TYPE CHEESE                                              
                                                                 
The CME Group weekly average block price declined for the third consecutive 
week and caused a 1 cent decline in domestic wholesale prices.  Prices for 
Swiss cuts declined $0.0350 stemming from Friday's release of the Class III 
milk price.  Domestic Swiss cheese production has increased as the mild 
winter weather has prompted an increase in milk production.  Demand for 
Swiss cheese is sluggish, inventories are increasing and the market 
undertone remains weak.  According to the latest NASS report, domestic 
Parmesan production during December 2011 totaled 25.8 million pounds, 0.5% 
more than November and 18.1% more than December 2010. Provolone production 
during December totaled 28.2 million pounds, 7.0% less than November and 
3.0% less than December 2010. Romano production during December 2011 totaled 
3.7 million pounds, 10.3% more than November and 0.5% more than December 
2010.  Swiss production during December 2011 totaled 27.8 million pounds, 
4.5% more than November, but 5.6% less than December 2010.  According to 
FAS, imports of high tier and quota Italian-type cheese for January totaled 
2.0 million pounds, up 25.1% compared to January 2011. Imports of quota 
Italian-type cheese for January totaled 0.7 million pounds, 17.1% higher 
than January 2011 and 2.5% of the annual quota.  Imports of high tier 
Italian-type cheese in 2011, totaled 1.3 million pounds, 30.1% higher than 
January, 2011.  Quota imports of Swiss/Emmenthaler varieties for January 
2012 totaled 3.0 million pounds, 20.0% more than January 2011. Norway and 
Finland, the two top sources, account for 59.4% of Swiss/Emmenthaler imports 
for January 2012.

WHOLESALE SELLING PRICES: FOB DISTRIBUTORS DOCK                  
DOLLARS PER POUND (1000 - 5000 POUNDS, MIXED LOTS)               
                           :           NEW YORK                  
VARIETY                    :    IMPORTED     :    DOMESTIC       
                           :                 :                   
Blue                       :  2.6400-5.2200  :  2.0400-3.5275*   
Gorgonzola                 :  3.6900-6.3900  :  2.5425-2.8025*   
Parmesan (Italy)           :       -0-       :  3.1625-3.7175*   
Provolone (Italy)          :  3.4400-6.3900  :  2.0825-2.2400*   
Romano (Cows Milk)         :       -0-       :  3.2300-5.3800*   
Sardo Romano (Argentine)   :  2.8500-3.9800  :       -0-         
Reggianito (Argentine)     :  3.2900-4.2400  :       -0-         
Jarlsberg-(Brand)          :  2.9500-4.9900  :       -0-         
Swiss Cuts Switzerland     :       -0-       :  3.6950-4.0175*   
Swiss Cuts Finnish         :  2.5900-2.8500  :       -0-         
* = Price change.                                                

U.S. Cheese Imports (USDA-FAS)
                  2012 Imports        % Change From   % of 
                  (Million Lb.)       1 Year Ago      Yearly Quota

Jan. Quota Imports 11.0               +  6.1           3.7

Jan.       
High Tier           2.3               + 56.5          N.A.
Quota Imports      11.0               +  6.1           3.7

1100C rick.whipp@ams.usda.gov