Too much cheese send prices downward to stimulate demand
The United States is overrun with cheese, a record-breaking 1.4 billion pounds in all.
The primary cause for the glut has been this year’s trade disputes with China and Mexico, who reduced cheese imports in response to U.S. trade barriers. Meanwhile, U.S. dairy producers have been producing milk near a record pace, which has prompted an overproduction of cheese as agribusiness companies try to get products with a longer shelf life.
The trade-induced issue is being exacerbated by shifting consumer demands; as Americans buy more foreign and artisan cheeses, standard products like American or cheddar cheese are being left on the shelf.
Unfortunately, some of the record stockpile of cheese is nearing its sell-by date, forcing sellers to slice prices to stimulate demand, sending the cheese futures contract to an all-time low of $1.37 per pound last week.