![]() ![]() Some analysts have raised fears that U.S. "It's the same as it is for everything else: If you've got too much of something, the price has to go down until consumption rises," Novakovic says. The current average price of whole milk is $15.12 per 100 pounds, which is much lower than the price required for dairy farmers to break even. The growing surplus of American-made cheese and milk means that prices are declining. Novakovic also notes that imported cheeses tend to cost more, so when people choose those, they buy less cheese overall. "It's also the case that we're seeing increased sales of kind of more exotic, specialty, European-style cheeses. "What has changed - and changed fairly noticeably and fairly recently - is people are turning away from processed cheese," Novakovic says. Despite this shift, sales of mozzarella cheese, the single largest type of cheese produced and consumed in the U.S., remain strong, he says. ![]() cheese market - in favor of more refined options, Novakovic tells Here & Now's Jeremy Hobson. #US CHEESE STOCKPILE DRIVER#But Americans are turning their noses up at those processed cheese slices and string cheese - varieties that are a main driver of the U.S. Suppliers turn that extra milk into cheese because it is less perishable and stays fresh for longer periods. ![]() According to data from the USDA, Americans drank just 149 pounds of milk per capita in 2017, down from 247 pounds in 1975. But what dairy farmers failed to realize was that Americans are drinking less milk. Over the past 10 years, milk production has increased by 13 percent because of high prices. The stockpile started to build several years ago, in large part because the pace of milk production began to exceed the rates of consumption, says Andrew Novakovic, professor of agricultural economics at Cornell University. history, means that there is enough cheese sitting in cold storage to wrap around the U.S. The glut, which at 900,000 cubic yards is the largest in U.S. While Americans consumed nearly 37 pounds per capita in 2017, it was not enough to reduce the country's 1.4 billion-pound cheese surplus, according to the U.S. It's a stinky time for the American cheese industry. ![]()
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