The process cheese industry of the United States began over 55 years ago. Basic patents describing blending and heating and use of emulsifiers were the first, shared by Kraft and Phenix interests. In the early years a few competitors were licensed. Some dealers and cheese makers believed processing could ruin the cheese industry, but cheese consumption per capita increased. About 60% of consumers preferred process to natural cheese. Investigations of early practices led to definitions at state and federal levels; these have been re-defined and frequently revised. Demands of processors have affected the natural cheese industry in developing and locating new factories and aiding in composition and quality control. Processors promoted packaging and mechandising of all cheese. Cheese processors, associated dealers, and distributors organized the National Cheese Institute which has been a force in meeting problems of research, education, and regulation. From 1944 to 1968 it gave over $225,000 for independent research on problems of public health and industrial practices. The industry defended its trading practices in New York, Illinois, and Wisconsin with mixed success when accused of conspiracy to fix prices by the Federal Trade Commission in the 1940s, but today is largely responsible for orderly trading on the Wisconsin Cheese Exchange. Values established are important factors in Federal Milk Marketing orders which determine prices of fluid milk.
Negative producer price differentials in Federal Milk Marketing Orders: Explanations, implications, and policy options
