That means California would have to add plants to move ahead in the race for the title of Big Cheese. But more new plants are opening in places such as Idaho and the Texas panhandle, which have growing dairy farms and lower costs, said economist Don Blayney of the Economic Research Service in the U.S. Department of Agriculture.
Companies have struggled in recent years to build new plants in California, where the permit process can take four to six years, said Michael Marsh, chief executive of the Western United Dairymen, which represents milk producers in the Golden State.
Cheese makers in California also must contend with opposition from environmental groups and, if they do get a plant open, high workers' compensation costs, Marsh said. "It is a challenge for us. The state of California really has to make our state attractive to businesses to locate here."
Wisconsin has worked to increase its milk supply after cheese makers said they needed about 15% more milk than they had, said Will Hughes, agricultural development administrator. The state has recruited farmers, encouraged them to add cows and provided incentives for them to install newer, more efficient equipment. The effort has paid off with renewed investment from firms such as BelGioioso.
Wisconsin cheese makers and agricultural officials also emphasized that they weren't looking to make more cheese but better cheese. Whereas California's plants tend to make large quantities of a few kinds, Wisconsin companies have focused on developing a variety of specialty cheeses, such as pesto Jack or Asiago, that command higher prices.
The state recently announced that specialty cheeses now account for 16% of Wisconsin's production, and two more specialty cheese plants will open in the next few weeks.
"I always say this is not a race with California to be No. 1 in producing cheese," Hughes said, "although not anyone in Wisconsin is going to want to give that up."
