Andy Montoya
There have been reports of a Swiss cheese shortage in the US, with some consumers unable to find it in Walmart, Target, or local stores. The pandemic has been a factor, with the sudden closure of schools and restaurants causing a drop in demand for cheese, forcing producers to look for foreign buyers. There are also supply chain issues, with bottlenecks at West Coast shipping ports, including in Seattle, Los Angeles, Long Beach, and Oakland, causing delays and raising costs. However, there are conflicting reports, with some areas of the US reporting no issues with finding Swiss cheese.
| Characteristics | Values |
|---|---|
| Reason for shortage | High demand, low inventory, and supply chain issues |
| Region affected | The US |
| Type of cheese | Swiss-style cheese, Emmental, Emmentaler |
| Substitutes | Gruyère, Cheddar, Gouda, Smoked Cheddar |
| Impact | Restaurants are affected more than grocery stores |
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What You'll Learn
Supply chain issues
The COVID-19 pandemic has affected several industries, including the cheese market. While there is no widespread Swiss cheese shortage, some regions in the United States have reported difficulties in finding sliced Swiss cheese in supermarkets and stores. This issue is not unique to Swiss cheese, as other types of cheese, such as cheddar, have also faced similar shortages in certain areas.
The shortage of sliced Swiss cheese can be attributed to multiple factors, including supply chain disruptions, distribution challenges, and increased demand. During the pandemic, the sudden closure of schools and restaurants led to a decrease in demand for cheese, prompting producers to seek foreign buyers. However, when restaurants reopened, they created a surge in demand, resulting in a "'perfect storm' for cheese producers.
Distribution challenges further exacerbated the situation. Bad weather and holiday schedules impacted deliveries, leading to out-of-stock situations in stores. Additionally, bottlenecks at West Coast shipping ports, including Seattle, Los Angeles, Long Beach, and Oakland, caused delays in product arrivals and increased costs along the supply chain. These bottlenecks were due to a shortage of shipping containers, affecting not just cheese but also other edible products like seafood and olive oil.
The demand for Swiss cheese, particularly sliced varieties, has also increased. Some consumers prefer the convenience of pre-sliced cheese, while others opt for thin slices for aesthetic purposes. This shift in consumer preferences has likely contributed to the perception of a shortage, as suppliers struggle to meet the demand for sliced cheese.
Furthermore, the availability of sliced Swiss cheese may be impacted by the specialization of Swiss cheese producers. Swiss cheese, or "Swiss-style" cheese in the United States, is often reproduced by American manufacturers, and the availability of the authentic product may vary depending on import and export dynamics.
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Demand outpacing supply
The COVID-19 pandemic has affected several industries, including the cheese market. While the sudden closure of schools and restaurants caused a drop in demand for cheese, causing producers to look for foreign buyers, the demand for Swiss cheese has since soared. Dairy farmer John Maxwell notes that restaurants are competing for the best Swiss cheese on the market, and cheese is "going gang busters with how much cheese is being used." This surge in demand has resulted in a Swiss cheese shortage, with inventories down and not many Swiss cheese plants in operation.
The supply chain issues are also exacerbated by the distinct supply lines to restaurants and grocery stores. Producers who supplied to grocery stores fared better than those supplying to restaurants. The pandemic has also increased the demand for imported cheese, seafood, olive oils, home goods, garden equipment, and sports equipment. This high demand, coupled with bottlenecks at West Coast shipping ports, has led to delays in product arrivals and increased costs along the supply chain.
The demand for sliced Swiss cheese, in particular, may be influenced by consumer preferences for convenience and pre-packaged options. Sliced cheese offers ease of use and storage, making it a popular choice for consumers. However, the availability of sliced Swiss cheese may vary across different regions and retailers. Some consumers have reported finding blocks of Swiss cheese more readily available than sliced varieties.
Additionally, the demand for Swiss cheese may be influenced by its unique characteristics, such as its distinctive holes, complex flavor profiles, and versatility in dishes. Swiss cheese is known for its creamy, salty, or nutty taste, and it can be grated, sliced thinly for sandwiches, or enjoyed with crackers. These attributes make Swiss cheese a sought-after ingredient for consumers, chefs, and restaurants, further contributing to the demand outpacing the supply.
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Shipping container shortages
There is no widespread Swiss cheese shortage. However, some regions in the US have reported a lack of availability of Swiss cheese, specifically pre-shredded or sliced Swiss cheese. This could be due to a variety of reasons, including distribution issues, holiday schedules, and bad weather affecting the supply chain.
Now, onto the topic of shipping container shortages. The COVID-19 pandemic significantly impacted the shipping industry, causing global shortages due to the displacement of containers blocking ports. This issue was exacerbated by global lockdown regulations, staff shortages, and a lack of truck drivers. The limited availability of containers, coupled with increased demand, led to surging container prices in 2021, affecting the profit margins of many businesses. Even in 2022, ports in the US continued to experience backlogs, congestion, and staff shortages.
The global shipping container shortage began in early 2020, triggered by an imbalance between supply and demand. According to Drewry Maritime Research, demand for goods increased by 6% in 2021. However, the issue also exposed deeper vulnerabilities in global trade that persist. Congestion at major ports, such as Los Angeles and Shanghai, resulted in significant delays, with wait times for unloading stretching from several days to over a week. This, in turn, increased logistics costs, with the Journal of Commerce reporting a 23% increase in 2023.
The container shortage has had a significant impact on global trade, with small and medium-sized enterprises bearing the brunt due to their limited negotiating power. To mitigate the effects of the shortage, businesses have explored strategies such as diversifying shipping partners, optimizing inventory management through predictive analytics, and investing in local warehousing to facilitate faster distribution. Technology has also played a vital role in managing the crisis, with digital platforms like Freightos and Flexport aiding in real-time shipment tracking and container location.
While experts predict that the worst of the container shortage may be over by 2024, some disruptions and logistical delays are expected to continue. The World Bank forecasts that global trade growth will stabilize at 2.4% in 2024, indicating that the ripple effects of the container shortage will still be felt.
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Bottlenecks at West Coast ports
While there is no widespread Swiss cheese shortage, some regions in the US have reported difficulties in finding sliced Swiss cheese in particular. This is not due to a decrease in production or demand but rather an issue with the supply chain.
The shortage of containers has resulted in higher costs along the supply chain, impacting a variety of industries beyond just cheese. The delays and increased costs have made it challenging for retailers to keep their shelves stocked, affecting the availability of Swiss cheese, among other products, for consumers.
Blake Anderson, president of the American Dairy Products Institute, highlighted the issue to USA Today, stating that many goods are loaded in containers off the coasts but are unable to get through due to the container shortage. This has resulted in disruptions to the supply chain, causing uncertainty for retailers and consumers alike.
The bottlenecks at West Coast ports have contributed to the difficulty in finding sliced Swiss cheese in certain regions of the US. The supply chain issues, combined with the increased demand for cheese during the pandemic, have created a perfect storm, affecting the availability of Swiss cheese and other products.
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Local availability
The availability of sliced Swiss cheese in local stores in the US has been affected by various factors, including the COVID-19 pandemic, supply chain disruptions, and changing consumer behaviour.
During the initial months of the pandemic, when restaurants and schools were closed nationwide, the demand for cheese plummeted, causing a surplus of cheese in the market and driving prices to historic lows. However, as suppliers worked to rebalance the market, prices surged, and the volatility in wholesale cheese prices disrupted the industry.
The pandemic also impacted the availability of labour, with a Reddit user commenting in January 2022 that holiday schedules and bad weather had affected deliveries to stores. This resulted in out-of-stock situations for certain cheese varieties, including Swiss cheese.
The pandemic also caused a shift in consumer behaviour, with people opting for retail purchases over restaurant dining. Cheese producers adapted by retooling production lines to focus on mass-market shredded and sliced products. However, this shift adversely affected high-end specialty cheesemakers, who rely primarily on upscale restaurants as their customers. As a result, grocery sales of expensive cheeses declined, and stores reduced the variety of cheese products on display.
Regional disparities in cheese availability have also been noted, with some areas experiencing shortages of specific cheese varieties, such as Swiss cheese, while other areas have a plentiful supply. For example, one Reddit user from the Cleveland area reported a Cheddar cheese shortage, while another from Northern California found no issues with the availability of the same cheese variety. Similarly, a user from Eastern PA could find sliced Swiss cheese but faced difficulty finding blocks of Swiss cheese, which seemed to be unavailable in North Texas as well.
Overall, the availability of sliced Swiss cheese in local stores has been influenced by the pandemic's impact on demand, supply, labour, and consumer behaviour, as well as regional variations in supply and demand.
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Frequently asked questions
The COVID-19 pandemic has disrupted the supply chain, causing a shortage of shipping containers and bottlenecks at West Coast ports, making it difficult to import cheese.
Yes, you can try Emmental or Emmentaler, which American-made Swiss cheese is inspired by. You can also look for pre-packaged sliced Swiss cheese from brands like Boar's Head or Trader Joe's.
Yes, there are regional differences in the availability of Swiss cheese. For example, some areas in the United States, such as Louisiana and Washington State, have reported a shortage of Swiss cheese, while other areas like California and Georgia have not experienced the same issues.
The shortage is not limited to Swiss cheese, and other types of cheese, such as cheddar, are also affected. However, the availability of different types of cheese may vary by region.
