SIC 2022 Natural, Processed and Imitation Cheese

Contenidos

• NAICS CODE(S).
• INDUSTRY SNAPSHOT.
• ORGANIZATION AND STRUCTURE.
• BACKGROUND AND DEVELOPMENT.
• Lowfat.
• Organic.
• CURRENT CONDITIONS.
• INDUSTRY LEADERS.
• RESEARCH AND TECHNOLOGY.
• FURTHER READING.

SIC 2022

This industry encompasses establishments primarily engaged in manufacturing natural cheese (except cottage cheese), cheese foods, cheese spreads, and cheese analogues (imitations and substitutes). These establishments also produce byproducts, such as raw liquid whey.

NAICS CODE(S)

311513

Cheese Manufacturing

INDUSTRY SNAPSHOT

Cheese is one of the principal product groups in the dairy industry and has become increasingly important to the growth of the entire dairy industry in the United States, which accounts for 25 percent of worldwide production, or 4.3 million metric tons. In fact, per capita consumption of cheese grew by 58 percent from 1980 to 2005 and is projected to increase to 34 pounds by 2015. Even more encouraging for the industry was market saturation (nearly 100 percent of households) and product appeal, with a reported 93 percent of consumers stating that they enjoyed the taste of cheese, according to the 2003 Cheese Omnibus Study conducted by Dairy Management Inc. (DMI). The study also indicated that 90 percent of consumers agreed that adding cheese to a dish gave it more flavor. As of 2005, the U.S. segment of the industry touted more than 300 different varieties, types, and styles of cheese to satisfy palates at any level.

Government industry reports show that the largest market for U.S. cheese sales in 2004 was the food service industry, at 43 percent. The second largest market, at 39 percent, was retail sales with the remaining 18 percent of cheese sales going to cheese processing, such as cheese sauces and frozen entrees.

According to the U.S. Census Bureau, approximately 497 establishments operated in this category for part or all of 2004. Industry-wide employment totaled approximately 40,103 workers receiving a payroll of more than $1.48 billion. Companies in this industry tended to be larger in size with about 41 percent employing more than 100 workers. The Annual Survey of Manufactures reported that shipments for the industry were valued at more than $27 billion in 2005. Additionally, for the overall industry a total of 31,430 employees worked in production in 2005, putting in nearly 65 million hours to earn wages of nearly $1.1 billion. The U.S. Department of Labor's Bureau of Labor Statistics showed continued losses in expected employment for the dairy product manufacturing industry as a whole by 2014 (about 14 percent) after a 6 percent loss was experienced from 1994 to 2004 though a small increase is predicted in output between 2004 to 2014.

Three key factors influenced cheese consumption: convenience, health, and flavor. The "low-carb" diet fads of the early 2000s redefined cheese as a healthy, high-protein snack and meal base. With an increasing number of consumers interested in lean or meatless meals, cheese became the protein substitute of choice (followed by tofu/soybean meal products). The 2003 Health Focus Trend Report from Health Focus International indicated that consumers choose wholesome flavor over concern for fat grams in their purchasing habits.

The United States has developed very few cheeses of its own. Processors instead replicate European cheeses and use their European names, except for Roquefort, which is a protected name. Some of the cheeses created in this country are Monterey jack, brick, Colby, and Herkimer. All of these cheeses are firm, ripened cheddar-type cheeses.

Dun & Bradstreet reported in 2006 that the industry's estimated 550 establishments posted annual sales of about $52.7 billion with about 34,244 employees. Illinois dominated with more than $41.2 billion in sales followed by Wisconsin with nearly $5.6 billion in sales and New York in a distant third with nearly $1.2 million in sales. Comprised of nine different specialties, the primary segment was processed cheese (nearly $41.5 billion in sales) with natural cheese at $6.4 billion. Other categories include cheese, natural and processed; cheese spreads, dips, pastes, and other cheese products; dips, cheese-based; pastes, cheese; spreads, cheese; whey, raw or liquid; and imitation cheese.

ORGANIZATION AND STRUCTURE

As Americans increased their appetite for cheese, there were growing numbers of small, regional cheese makers sending their specialty products to market. U.S. cheese producers obtain the raw milk from which their products are made from thousands of commercial dairy farms. The number of farms has dwindled steadily for decades, but they grew larger in size and milk production efficiency was vastly improved. Many of the farmers are members of one of the several hundred regional dairy co-ops. These co-ops, formed to represent milk producers in price setting, began to take over other dairy operations, including the manufacture and marketing of a...