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Amidst all the high-tech excitement, it’s nice to know there are still lots of people making a buck the old fashioned way. Bloomberg investigated Parmesan cheese in February:

How serious is the problem? Bloomberg News had store-bought grated cheese tested for wood-pulp content by an independent laboratory.

Cellulose is a safe additive, and an acceptable level is 2 percent to 4 percent, according to Dean Sommer, a cheese technologist at the Center for Dairy Research in Madison, Wisconsin. Essential Everyday 100% Grated Parmesan Cheese, from Jewel-Osco, was 8.8 percent cellulose, while Wal-Mart Stores Inc.’s Great Value 100% Grated Parmesan Cheese registered 7.8 percent, according to test results. Whole Foods 365 brand didn’t list cellulose as an ingredient on the label, but still tested at 0.3 percent. Kraft had 3.8 percent.
…
According to the FDA’s report on Castle [Cheese Inc.], obtained through the Freedom of Information Act, “no parmesan cheese was used to manufacture” the Market Pantry brand 100% grated Parmesan Cheese, sold at Target Corp. stores, and Always Save Grated Parmesan Cheese and Best Choice 100% Grated Parmesan Cheese, sold by Associated Wholesale Grocers Inc., which along with its subsidiaries supplies 3,400 retail stores in 30 states. Instead, there was a mixture of Swiss, mozzarella, white cheddar and cellulose, according to the FDA.
…
Of all the popular cheeses in the U.S., the hard Italian varieties are the most likely to have fillers because of their expense. Parmesan wheels sit in curing rooms for months, losing moisture, which results in a smaller yield than other cheeses offer. While 100 pounds of milk might produce 10 pounds of cheddar, it makes only eight pounds of Parmesan.

But it doesn’t always work as planned:

In a request seeking to fit the punishment to the crime, the U.S. is asking that the head of a company that passed off fake grated Parmesan cheese as the real thing be sentenced to time at a food pantry or soup kitchen.

While jail remains an option, sentencing documents filed Tuesday by federal prosecutors in U.S. District Court for western Pennsylvania are only asking that Michelle Myrter, president of Castle Cheese Inc. in Slippery Rock, Pennsylvania, receive 0 to 6 months in lockup, along with her community service. Her attorney has asked for probation.

Myrter pleaded guilty seven months ago to federal misdemeanor charges involving food adulteration. The prosecutors said her company and two others controlled by her family made and distributed hundreds of thousands of pounds of fake cheese, passing it off as 100 percent Parmesan to stores around the country between 2010 and 2013.

The other two companies charged — Universal Cheese & Drying Inc. and International Packing LLC — also pleaded guilty earlier this year to charges of conspiracy and money laundering. These companies are no longer operating and have been unable to pay $1 million in fines that were part of their plea agreements.

PerpetualDiscounts now yield 5.07%, equivalent to 6.59% interest at the standard equivalency factor of 1.3x. Long corporates now yield about 3.7% so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) is now about 290bp, unchanged from the September 28 report.

This entry was posted on Thursday, October 6th, 2016 at 12:52 am and is filed under Market Action. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.