National Cheese Exchange facts for kids

The National Cheese Exchange (NCE) was a special place where people bought and sold cheese. It was a private group that didn't aim to make a profit. The NCE was located in Green Bay, Wisconsin, a state famous for its cheese!

How the Cheese Exchange Worked

Every Friday morning, for just half an hour, members of the National Cheese Exchange would meet. They came together to buy or sell large amounts of cheddar cheese. This cheese came in two main forms:

• Big blocks weighing about 40 pounds (18 kg)
• Even bigger barrels holding around 500 pounds (227 kg)

When they finished trading, the final prices for the cheese were written down. These prices were then shared widely across the entire dairy industry. This was very important because these NCE prices helped set the cost for almost all cheese bought and sold in the United States.

Why the Exchange Was Important

For many years, the prices set at the National Cheese Exchange were super important for the dairy industry. Up until April 1997, the USDA (United States Department of Agriculture) used these prices. They helped the USDA figure out the basic price for all milk sold under federal rules. This meant the NCE had a big impact on how much farmers were paid for their milk.

The activities at the NCE were watched over by the Wisconsin Department of Agriculture and the Wisconsin Attorney General. They made sure everything was fair and followed the rules.

Where Did the Cheese Trading Go?

In May 1997, the way cheese was traded changed. Instead of meeting in Green Bay, the buying and selling of cheese moved to a much larger place. It moved to the Chicago Mercantile Exchange, which is a big market for many different types of goods.

References

•  This article incorporates public domain material from the Congressional Research Service document "Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition" by Jasper Womach.