SIC 2022 Natural, Processed and Imitation Cheese

Encyclopedia of American Industries | 2005 | Copyright

SIC 2022
NATURAL, PROCESSED AND IMITATION CHEESE

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. Wisconsin has been the leading cheese producer of the 21 major cheese-producing states in the nation; its shipment value was approximately $4.3 billion. California was the number-two cheese producer in the late 1990s, following an aggressive promotional campaign. Annual per capita consumption of cheese increased yearly during the 1990s (to 30 pounds late in the decade), with projections at more than 35 pounds per person by 2005. However, both consumption and production actually declined in the early 2000s. After increasing from $11 billion in the mid-1980s to approximately $22.5 billion in 1998, the total value of industry shipments fell to $19.6 billion in 2000.

The United States has developed very few cheeses of its own. Processors have instead replicated European cheeses and used 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.

Organization and Structure

Kraft, the leading cheese producer, is part of a diversified conglomerate. In 1988, Kraft was purchased by the tobacco producer, Philip Morris Companies Inc., for $12.9 billion. Philip Morris combined Kraft with an 1985 acquisition to form Kraft General Foods, the largest coffee and cheese producer in the United States. Its strongest competition in the cheese area of its operations came from large dairy companies and dairy cooperatives like Beatrice, Sargento, Inc., and Tillamook.

As Americans' cheese palate became more adventurous in the 1990s, 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...

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Related newspaper, magazine, and trade journal articles from HighBeam Research

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