Something sinister in dairy prices - Canadian Pizza Magazine

As autumn dawns on the nearing horizon, bored youngsters have returned to their classrooms, revitalized by the aroma of new erasers and starched pristine clothes. Somewhere under the surface, behind the traditional school pizza lunches lurks something sinister – industrial mathematics.

While the charges and beneficiaries of our weekly morning pizza deliveries attempt the simplest of equations, the dairy industry has laid forth a new quiz for all: declining consumption patterns, added to an aging population, subtracting technological improvements in the manufacturing process, divided by the current economic state equals delivery surcharges and unscheduled cheese price hikes.

Now, if I really understood math, I wouldn’t be pondering the conceptual impact an unplanned two per cent price hike had on the foodservice industry. That said, even the stellar Ontario public school system education afforded to this editor still underscores that something in this mathematic equation stinks worse than old Limburger.

The increase in cheese prices on Sept. 1 suggests that there is a greater need for some social education for the dairy industry. Canadian dairy prices already rank among the highest in the world and we’ve encountered no significant shortage in supply, as in relation to wheat. Offshore markets, such as China and India, can’t produce enough domestic dairy products to meet demand – giving reason to explore export value over a declining domestic market.

Makes sense to some ... unless, of course, you're in business that involves any kind of dairy product.

COMMENTS

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Written by Rob G on 2008-11-18 12:42:59

As an executive chef to a fairly new pizza restaurant, I have noticed that almost every week when we get our cheese from our supplier, it just keeps getting more expensive, sometimes peaking at $380.00 for a case of 10 blocks.
There has been several small pizza restaurants go out of business due to increasing cheese prices, and if there's not some sort of cap put on this, I fear we'll be closing fairly soon as well, because we cannot keep paying more and more for product, and if we raise prices, customers don't ask why we did it, they just go somewhere else, and the corporations that own pizza restaurants thrive on our business.

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