Understanding Cheese Costs (2024)

FAQs

Why does cheese cost so much? ›

Energy costs to produce and refrigerate the cheese, worldwide demand, and the cost of feed for the cows are just a few factors considered in the pricing of cheese. Cheese is one of the biggest ingredient expenses for a pizzeria, so understanding the volatility in cheese pricing is important.

However, the general formula for cheese is C₂₀H₃₂O₁₄, which represents the main components of cheese: water, fat, protein, and carbohydrates.

That honor goes to pule cheese (or magareći sir), a rare cheese produced in Zasavica Donkey Reserve in west central Serbia. The price? Around $600 a pound.

One major distinguishing factor between cheap and expensive cheese is the core ingredient: milk. Industrial cheese producers likely rely on commodity milk, whose price is set by the market and pricing regulations.

Government cheese was created to maintain the price of dairy when dairy industry subsidies artificially increased the supply of milk and created a surplus of milk that was then converted into cheese, butter, or powdered milk.

What Is the Retail Markup on Cheese? The retail markup on cheese is about 25-50% wholesale and 50-100% or more in your retail businesses like grocery stores and restaurants. It's important to remember that a retail markup is not a profit margin but rather a key variable in calculating it.

1. Parmigiano Reggiano. Parmigiano Reggiano is a world-renowned cheese that is considered to be one of the finest in the world. Made with raw, semi-skimmed milk from cows that graze on fresh grass and hay, it boasts a hard, gritty texture that is unique to this cheese.

Favorite? Considered to be among the world's top quality cheeses, Parmigiano Reggiano is made with raw, semi-skimmed milk from cows grazing on fresh grass and hay. It has a hard, gritty texture and its flavors range from nutty to robust and slightly piquant, depending on how long the cheese had matured.

Even though purists may want to stick to the big brands for peace of mind, it doesn't mean that store-brand cheese is outright inedible. Far from it. In fact, 365, the Whole Foods store brand, scored relatively well on a recent cheddar cheese taste test, even beating out heavy hitter name brands like Kraft.

These cheeses are often made using traditional methods, premium quality ingredients, and aged to perfection. They are typically more expensive than mass-produced cheeses, but the taste and quality are well worth the investment.

Why is some cheese cheaper? ›

Fresh cheeses are generally cheaper than those that spend time in the aging room. Because they're more affordable, you can treat yourself to something small-batch and local without breaking the bank.

U.S. dairy farmers faced high operational costs and increased their collective output by less than one tenth of one percent in 2022, leaving milk processors and cheese manufacturers to compete for limited milk supply at a higher price.

The U.S. cheese surplus quickly grew in size during the 1970s, due to rising inflation reports Atlas Obscura. To combat rising inflation, President Carter intervened on behalf of America's dairy farmers. He raised the price of milk and used the Agricultural Act to stock the surplus stores.

Cheese is driving the bus in the US dairy category due to growing demand, product innovation, promotions and a renewed focus by retailers. Cheese consumption in the US is at an all-time high of nearly 42lbs per person, according to US Department of Agriculture (USDA) data.

Costs that are pushing up the price of milk include labor, transportation, energy, packaging and the cost of feed.