New Mozzarella Products Will Bring in Cheaper Pizzas

In Canada, farmers have found a way to make a different kind of mozzarella cheese, which wil lead to cheaper pizzas. The new milk classification has been found possible to create cheaper products. 

Effective June 1, Canadian cheese is expected to be out in the market with its cheaper price. Economically, this is good news as t will slow down the destruction of cheese sales. 

For over 15 years, the battle for costly cheese for pizza has been occuring and this is all bcause of Giant frozen pizza makers' exemption at the high prices of cheese. Now all those issues can be resolved with the new cheese. 

“There’s been an inequity with frozen pizza versus fresh pizza with the exact same mozza cheese, and we’ve been pushing and pushing and pushing (for changes),” said Garth Whyte, president of the Canadian Restaurant and Foodservices Association.“This is a major first step on dealing with this issue, and will be significant savings to our members who sell pizza.”

One of the means that pizza chain survives the price hike of cheese is by importing their mozzarella as pizza topping kits, which was then classified by the Canada Border Services Agency as an imported duty-free since the box came in with peperoni. 

This exemption has made the Dairy Farmers of Ontario down on to the sales of their mozzarella cheese, hence have been a threat to Canada's farm supply management system. 

Now, the newly created mozzarella milk class together with the "Kit" issue is said to be foreseen at a looming pattern which would end up eroding their milk-quota system. 

“It looks as though the farmers have hoisted the white flag,” said James McIlroy, an international trade consultant based in Toronto. “This is going to go on and on.There’s going to be more and more foreign processed products coming into Canada, using foreign dairy products, which are going to cause problems for our processed cheese industry.”

The economies of scale is still the bottom line and Canadians still see that the U.S. and Canadian products still has huge price gaps. 

“At the end of the day I can get a hotel room in the same chain cheaper in the U.S., I can get a steak dinner (for less), it just goes on an on and on,” said Agriculture Minister Gerry Ritz.

If the U.S. figures out this new kind of milk, there probably would be cheaper cheese in America!
Posted by Diane Araga, on May 6, 2013 at 10:00 AM