Bushra Griffith
Parmesan cheese is a beloved staple in many kitchens, but the price of this Italian import has been steadily increasing. In 2021, the cost of Parmesan cheese was projected to increase by \$1.50 to \$2.00 per pound, a surge of 33% that was expected to slow down purchasing patterns. This price increase was attributed to a variety of factors, including supply chain issues, pandemic-related costs, and increased consumer demand during the pandemic. The cost of producing Parmesan cheese has also risen due to fluctuations in milk prices and changes in the available milk supply. With these factors at play, it's no surprise that Parmesan cheese prices are on the rise.
| Characteristics | Values |
|---|---|
| Reason for price increase | Supply chain issues due to the coronavirus pandemic |
| Retail demand increase | 20-30% |
| Price increase by April 2021 | $1.50-$2 per pound |
| Parmesan production cost increase | 40-60% |
| Reason for production cost increase | Fluctuating milk prices |
| Reason for fluctuating milk prices | Pandemic-related costs |
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What You'll Learn
The impact of the COVID-19 pandemic on retail and foodservice businesses
The COVID-19 pandemic has had a significant impact on retail and foodservice businesses, causing major disruptions and changes in the way these industries operate. One notable effect has been the increase in prices of certain goods, such as parmesan cheese, due to supply chain issues and changes in consumer demand.
During the pandemic, retail demand for cheese increased by 20 to 30 percent as people were staying at home and cooking more. This, coupled with supply chain disruptions, led to a significant increase in cheese prices. The cost of producing parmesan cheese, in particular, rose by 40 to 60 percent due to changes in the available milk supply. As a result, consumers can expect to pay up to 33 percent more for parmesan cheese, with prices projected to increase by $1.50 to $2 per pound.
The pandemic has also caused widespread job losses, with poorer households and women bearing the brunt of the impact. As lockdowns were implemented and people stayed at home, the hospitality and logistics sectors saw a surge in employment due to the growing retail delivery sector. On the other hand, women's participation in the workforce decreased, largely due to their over-representation in hard-hit sectors such as accommodation, food services, and manufacturing.
The foodservice industry was also significantly impacted by the pandemic, as it was identified as one of the primary sources of COVID-19 transmission. Foodservice businesses had to adapt quickly to new business environments, implementing untact services such as drive-through, curbside pickup, and delivery options. This required a reallocation of human resources and related training for employees. The pandemic also heightened concerns about food safety, with local health departments facing challenges in ensuring the safety of food establishments.
The pandemic has also accelerated the shift towards online shopping, with an uptick in online purchases during the global lockdowns. This trend has had lasting effects, with retailers investing in both physical and online selling spaces to stimulate sales. Overall, the COVID-19 pandemic has had far-reaching consequences for retail and foodservice businesses, leading to changes in consumer behaviour, supply chain disruptions, and new operational challenges.
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Supply chain issues
The supply chain issues were further exacerbated by changes in the available milk supply, which made cheese significantly more expensive to produce. For example, the cost of producing parmesan at Wisconsin's Schuman Cheese plant increased by 40 to 60 percent. These increased production costs were then passed on to shoppers, driving up the price of parmesan cheese.
The pandemic also caused delays in the supply chain, as it takes around 10 months for parmesan cheese to age before it can be sold. This meant that the pandemic-related costs were not immediately reflected in the price of parmesan, resulting in a delayed surge in prices.
Overall, the combination of increased demand, supply chain disruptions, and higher production costs due to the pandemic contributed to the rising price of parmesan cheese. These factors created a perfect storm that made it difficult for the supply chain to keep up with demand, resulting in higher prices for consumers.
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Increased consumer demand
Parmesan cheese prices are expected to increase due to several factors, including increased consumer demand, supply chain issues, and production costs. One of the main reasons for the price increase is the high consumer demand for cheese during the coronavirus pandemic. When the pandemic struck, retail demand for cheese increased by 20% to 30% as people were staying home and cooking more. This increased demand put pressure on the supply chain, which was already facing disruptions due to the pandemic. The pandemic-related costs for cheesemakers, such as changes in the available milk supply and transportation costs, also contributed to the projected price increase.
The impact of the pandemic on the cheese industry caused a delay in price adjustments for Parmesan cheese, which typically takes around 10 months to age before hitting the shelves. However, by April 2021, the prices were expected to increase significantly, with projections ranging from $1.50 to $2.00 per pound. This price increase is not unique to Parmesan cheese, as overall cheese prices in the market have surged due to the pandemic. The cost of producing Parmesan cheese has also increased, with reports of a 40% to 60% rise in production costs at Wisconsin's Schuman Cheese plant.
The combination of increased consumer demand, supply chain issues, and higher production costs has resulted in the projected price increase for Parmesan cheese. The price surge is expected to affect consumers who are willing to pay more for their desired cheese experience and flavor. The high prices may persist until the supply chain stabilizes and catches up with the demand.
The price increase has also drawn attention to the differences between Parmesan cheeses. The protected cultural status of Parmigiano-Reggiano, which dictates specific production criteria and methods, contributes to its higher cost compared to other Parmesan varieties. The aging process, which can be up to 10 months for regular Parmesan, also impacts the price, with longer-aged cheeses like Parmigiano-Reggiano commanding a higher price due to their more complex flavors and textures.
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Fluctuating milk prices
During the COVID-19 pandemic, milk prices fluctuated significantly, leading to a 40-60% increase in the cost of producing Parmesan cheese at some plants. This increase was due to a combination of supply chain issues and increased consumer demand. With people staying home and cooking more, the retail demand for cheese increased by 20-30%.
The impact of these fluctuations was delayed due to the aging process of Parmesan cheese, but by April 2021, prices were expected to increase by $1.50-$2.00 per pound, a relative increase of 33%. This increase was expected to last for at least 6 months.
While the price of Parmesan cheese has historically been higher than that of other cheeses due to its protected cultural status and strict production requirements, the impact of fluctuating milk prices cannot be understated. The combination of supply chain issues, increased consumer demand, and milk price fluctuations has resulted in significant price surges in the Parmesan cheese market.
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The difference between Parmesan and Parmigiano-Reggiano
Parmesan cheese prices are expected to skyrocket due to supply chain issues caused by the COVID-19 pandemic. By April 2021, the price was projected to increase by $1.50-$2 per pound.
Parmigiano-Reggiano is a type of Parmesan cheese. Parmigiano-Reggiano is made in specific regions of northern Italy, including Bologna, Reggio Emilia, Mantua, Modena, and Parma, from which the name of the cheese originates. Under Italian law, only cheese produced in these provinces may be labelled as Parmigiano-Reggiano. Parmigiano-Reggiano is made from skimmed or partially skimmed cow's milk from the area and specific methods, and it is typically aged for about two years. Parmigiano-Reggiano has a hard, pale-golden rind and a straw-coloured interior with a rich, sharp flavour. Its granular texture is melt-in-the-mouth.
On the other hand, Parmesan that is not labelled as Parmigiano-Reggiano does not have as many strict rules to follow. It can be made anywhere in the world using any kind of cow's milk, such as pasteurized or skim milk, and is typically aged for about 10 months. Parmesan does not need to specify the type of milk or length of aging on its label. It is easier, faster, and less expensive to make regular Parmesan than Parmigiano-Reggiano. The high-quality milk and lengthy aging process of Parmigiano-Reggiano give it an earthier, nuttier, and sharper flavour than other Parmesan.
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Frequently asked questions
The price of parmesan cheese is increasing due to supply chain issues caused by the coronavirus pandemic, as well as increased consumer demand during the pandemic.
The price of parmesan cheese started to increase in April 2021, after a 10-month delay in pandemic-related costs.
The price of parmesan cheese is expected to increase by $1.50-$2.00 per pound, which represents a 33% increase from its previous price.
Yes, Grana or Grana Padano cheese is made with a similar process and has a similar robust flavor to Parmigiano-Reggiano, a type of parmesan cheese that is more expensive due to its protected cultural status and strict production requirements.
