A cheese glut is causing U.S. commercial cold-storage stockpiles to rise as suppliers are unable to sell off excess inventory overseas because of a strong dollar.
"The country is facing a cheese glut," UK-based publication
The Telegraph wrote of the United States. "Despite cheeseburgers and oozing deep-dish pizza being two defining culinary exports of the country, they still have so much delicious dairy product they can't eat it all. U.S. dairy farmers boosted production in recent years because of soaring dairy prices."
"However, the relatively strong dollar means they haven't had as many cheese exports as expected. Now, the country has more cheese than it knows what to do with," The Telegraph continued.
Bloomberg reported in April that exports from the European Union increased in 2015 and 2016, even with Russia banning trade in retaliation for sanctions leveled against them for its actions in Ukraine.
Quartz reported that the chief executive of Dean Foods, America's biggest dairy company, told analysts in May that U.S. butter and cheese prices were not competitive in the international market.
"A glut of milk, plunging prices and a weakening euro mean the EU has been able to grab customers in Asia and the Middle East, while U.S. sales have fallen," Bloomberg wrote.
"European dairy products are so cheap right now that the U.S. itself has become the new No. 1 customer for some products – imports of EU butter doubled last year and rose 17 percent for cheese, according to the European Commission," Bloomberg added.
Increased sales in Europe are not great European dairy farmers, who now fear that continued low prices will put many of them out of business.
"Average raw milk prices in the EU have slumped to the lowest levels since 2010," Bloomberg wrote. "U.S. prices have also started falling, with cheddar on the Chicago Mercantile Exchange trading (in late April) at a five-year low."
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