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American Cheese Surplus Reaches Record High

According to the U.S. Department of Agriculture, there's a 1.4 billion-pound cheese surplus. "The glut, which at 900,000 cubic yards is the largest in U.S. history, means that there is enough cheese sitting in cold storage to wrap around the U.S. Capitol," reports NPR. Americans managed to consume nearly 37 pounds per capita in 2017, but that wasn't enough to reduce the surplus. From the report: 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. Over the past 10 years, milk production has increased by 13 percent because of high prices. But what dairy farmers failed to realize was that Americans are drinking less milk. According to data from the USDA, Americans drank just 149 pounds of milk per capita in 2017, down from 247 pounds in 1975.

Suppliers turn that extra milk into cheese because it is less perishable and stays fresh for longer periods. 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. cheese market -- in favor of more refined options, Novakovic tells Here & Now's Jeremy Hobson. Despite this shift, sales of mozzarella cheese, the single largest type of cheese produced and consumed in the U.S., remain strong, he says. Novakovic also notes that imported cheeses tend to cost more, so when people choose those, they buy less cheese overall. The growing surplus of American-made cheese and milk means that prices are declining. 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.

29 of 398 comments (clear)

  1. Supply and demand by rgmoore · · Score: 5, Insightful

    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.

    If an industry consistently produces more than consumers demand and has prices below break even, the normal market response would be for some of the producers to go out of business. The only reason they don't is because of government subsidies. There's no good reason for the government to constantly exempt farmers from the normal law of supply and demand.

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    1. Re:Supply and demand by MerlynEmrys67 · · Score: 4, Insightful

      If an industry consistently produces more than consumers demand and has prices below break even, the normal market response would be for some of the producers to go out of business. The only reason they don't is because of government subsidies. There's no good reason for the government to constantly exempt farmers from the normal law of supply and demand.

      There is a very good reason why farmers are exempt from the normal laws of supply and demand... Same reason we use corn based ethanol that takes more energy to produce that the output energy as a fuel. That simple reason is... Iowa votes first

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    2. Re:Supply and demand by AHuxley · · Score: 5, Insightful

      Its hard work to ramp up and ramp down farms and the needed generational skills.
      Most normal nations do all they can to keep their farms productive and producing so their nations will never face food shortages.
      Some decades see a lot of extra food.
      Productivity is good. Farmers on the land, been productive is good.
      Needing to find money to import food is not good.

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    3. Re:Supply and demand by Anonymous Coward · · Score: 5, Insightful

      Keeping a stable food supply is one of the highest priorities of any sensible government on the planet, actually.
      Problem is there are sometimes low demands for some things, which leads to issues that tend to spiral out of control if not managed properly.
      This is one of those cases. It has been horribly mismanaged.
      The shitty quality cheeses produced are also an issue.

    4. Re:Supply and demand by rgmoore · · Score: 4, Funny

      I'm pretty sure Donald Trump's BFF cares a lot more about borscht than poutine.

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    5. Re:Supply and demand by phantomfive · · Score: 3, Insightful

      There's no good reason for the government to constantly exempt farmers from the normal law of supply and demand.

      There's a very good national security reason:
      We want to keep sufficient food production in the United States so that if we are at war, or just if there is a global food crisis, we won't have people starving to death.

      That doesn't mean we necessarily have to fund milk producers, but it makes sense to ensure you have enough good food production. It's better than buying another stealth F-22 Raptor, and much cheaper.

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    6. Re:Supply and demand by ShanghaiBill · · Score: 4, Insightful

      Its hard work to ramp up and ramp down farms and the needed generational skills.
      Most normal nations do all they can to keep their farms productive and producing so their nations will never face food shortages.

      ... and other countries have no subsidies at all. New Zealand has none. Do you think they are starving?

      Subsidies are driven by politics, not by "preventing hunger".

      The American Electoral College, which magnifies the power of small rural states, means that our system of subsidies is especially stupid. Even European farm subsides look sensible when compared with ours.

    7. Re:Supply and demand by AHuxley · · Score: 3, Insightful

      re "stockpile food in case of shortage. "
      That can change with politics, war, currency prices. An embargo.
      When the low cost food stops, riots start.

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    8. Re:Supply and demand by jabuzz · · Score: 3, Insightful

      Noting that you get beef in the EU that originates outside the EU, you just don't get beef pumped full of hormones. Similarly you get chicken that is from outside the EU. It;s just not slaughtered in such disgustingly horrible conditions that the only way to make it safe to eat is wash it in chlorine.

      The USA is free anytime to export these products to the EU, they just have to be produced in line with EU standards. It is a totally reasonable expectation.

      It's no different from banning imports of toys painted with lead paint.

  2. I will be glad to help by Lije+Baley · · Score: 4, Insightful

    I love cheese, fancy or not. But it's expensive. Quit hoarding, lower the price, and I'll eat it! Dairy product boom and bust is nothing new in the U.S. When I was a kid, dairy was like some kind of strategic item, with practically a command economy, government subsidies always coming and going. Our neighbor (farmer) got in and out of the dairy business every few years, following the subsidies. In fat (ha ha) years, the government was giving the stuff away.

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    1. Re:I will be glad to help by skam240 · · Score: 5, Interesting

      I made a trip to the UK a few years ago and found quite a lot of really fucking good cheese of all kinds and varieties for very affordable prices. Over here, anything other than the fundamental basics for cheese are a small fortune. It seems to me our Dairy industry is pretty dysfunctional and I suspect government subsidies are discouraging them from innovating in the context of their surplus milk.

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    2. Re:I will be glad to help by Solandri · · Score: 5, Informative

      The subsidies stem back to the Great Depression and the Dust Bowl. That's when Americans realized that OMG it's possible for the country not to produce enough food to feed everyone. Consequently, the government enacted a system of subsidies to assure there's always overproduction of food. An oversupply would normally crater the market price, so the government buys all that food at a fixed price (high enough to keep the farmers in business). Then resells the food to the public at a lower price.

      That's why corn ethanol and high fructose corn syrup exist. Due to this system, the country grows more corn than it consumes. Consequently the government has to figure out things to do with the excess corn. It becomes foreign aid, feed for cattle, corn ethanol, and high fructose corn syrup. This is why those reports about beef costing us $x per pound in subsides doesn't really mean that we would save $x per pound if we ended the subsidies for cattle feed. The cost to grow that extra corn is a sunk cost. If we stopped using the excess corn for feed, that doesn't mean we get our money back. Its cost would just be distributed to other things we do with the excess corn - corn we send as foreign aid would cost us more, and ethanol and HFCS prices would go up. The way it's set up now, if farmers have a bad corn crop, all that happens is some cows go hungry instead of people going hungry (in fact those cows which can't be fed will probably be slaughtered to produce beef).

      This is also why we we pay farmers not to grow anything - so their land is ready and available to be turned into cropland in case existing cropland should be decimated by disease, pestilence, or another dust bowl. If we didn't pay the farmers, they'd sell the land and it would be used to build condominiums and other things that you can't eat.

      So the subsidies are basically insurance. We're paying extra to guarantee there's always an oversupply of food. We could kill the subsidies and the average price of food over time would be lower. But some years we wouldn't produce enough food to feed everyone and food prices would spike.

  3. Re:Cow Milk by bobbied · · Score: 4, Funny

    is for baby cows.

    Moooo!

    I love cheese! Just not a million pounds of it. No Whey...

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  4. Re:wrap around the U.S. Capitol by dgatwood · · Score: 5, Funny

    Yeah, this sounds like a great idea. We can use it to build a wall around Washington, D.C. I'm pretty sure Mexico will gladly pay for it.

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  5. Another Trump comment by fluffernutter · · Score: 3, Informative

    And Trump criticizes Canada's supply management which is aimed to discourage overproduction. Jesus.

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  6. Results by DaMattster · · Score: 3, Interesting

    These are the results of corporate America not responding quickly enough (and maybe doubling down against) to demands by Americans for healthier foods. I feel badly for the small farmers that are adversely impacted because they basically produce what the larger buyers order them to produce. I recall something the President of Kraft Foods said in the 1960s. He said that these preservatives were made for the space race and to keep food fresh for astronauts on long trips. He specifically said these preservatives are not safe for long term consumption. It just goes to show Corporate America doesn't give a flying fuck about you and me past the money we give.

  7. It's simple. by msauve · · Score: 3, Insightful

    Just stop f'ing subsidizing stuff. The end result is always uneconomic, unintended consequences. And, "American cheese" just sucks, anyway. If they're going to build a cheese bank, make it aged Cheddar or Colby or Gouda (IMHO).

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  8. Re:wrap around the U.S. Capitol by rmdingler · · Score: 5, Insightful

    "The glut, which at 900,000 cubic yards is the largest in U.S. history, means that there is enough cheese sitting in cold storage to wrap around the U.S. Capitol,"

    Awesome! The artist Christo merely wrapped the German Parliament in cloth. Wrapping the US Capitol in cheese would absolutely top that!

    Now, if we also have a surplus of bacon . . . we could also wrap it in that, and fry that bastard, and have lunch for the rest of the year!

    The beauty of this situation is that the pork is already on the inside.

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  9. Re:Cow Milk by ClickOnThis · · Score: 4, Funny

    is for baby cows.

    Moooo!

    I love cheese! Just not a million pounds of it. No Whey...

    I Gouda hand it to you. Feta love of God, that's so funny, I Camembert it. Emmental for cheese jokes -- I just Edam up.

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  10. Re:Part of the answer by techno-vampire · · Score: 3, Informative

    I take it, then, that you've never tried plain unsweetened yogurt. Not only is it tasty and nutritious, there are lots of recipes out there that use it.

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  11. Re:Part of the answer by BlazeMiskulin · · Score: 4, Informative

    Farmers don't make the cheese. They raise cows that produce milk.

  12. There is indeed a good reason by Pollux · · Score: 5, Informative

    There's no good reason for the government to constantly exempt farmers from the normal law of supply and demand.

    There is a reason, and it's a damn good one: To regulate supply and stabilize pricing.

    Think about it: have you ever had to worry about food, really, really worry about it? A moderate price increase due to increasing oil prices at the turn of the century is the closest our country has ever come to a "food crisis". There has never been a serious food shortage or price inflation for food in the US for as long as I've been alive.

    It used to not be that way. You can go back to the 70s, and read about how rapidly fluctuating food prices created quite a political stir, as evidenced by the April 1973 cover of Time Magazine. If you study the data on this page, you can see both how food prices (particularly beef) stabilized after 1980, and how the average worker has seen a steady increase over time in the amount of food that can be purchased with their wages.

    That has been the primary purpose of the US Farm Bill: to encourage, subsidize, and regulate the food market, stabilizing pricing and providing ample food supply. Because when there's oversupply, people complain about food going to waste. When there's a lack of supply, people riot and governments collapse. Which would you really prefer?

  13. Re:Coincidence I read about this last night by arglebargle_xiv · · Score: 5, Insightful

    Last night, I was wondering what exactly "American cheese" is.

    It's this tasteless, rubbery gunk that, in some cases, looks pretty close to cheese.

    It's really weird stuff, when I lived in the US I initially bought generic cheese (i.e. went for the most average product because their cheese looks weird and I wanted to go for the safest option), and it was tasteless rubbery gunk. So I bought stronger cheese, and it was tasteless rubbery gunk. Then I bought extra strong, mature, whatever cheese, and it was still tasteless rubbery gunk. A few months later I was on a plane stuck on the tarmac due to snow and chatting to the guy next to me, who was a cheese importer. He said business was tough, because it was hard to sell cheese with any flavour when most people went for the most bland gunk there was. So there were twenty different types of cheese in the supermarket, but all were the same bland gunk, because that's what sold.

  14. Re:wrap around the U.S. Capitol by bill_mcgonigle · · Score: 5, Funny

    It's really a stupid measurement. The reference standard is how many times the cheese can wrap around the Library of Congress. Everybody knows that.

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  15. Re:Cheese? by smoot123 · · Score: 4, Interesting

    The label says "pasteurized process cheese food".

    You're being too generous. IIRC, it's "pasteurized processed cheese food product". I don't know how a food is different from a food product and I'm pretty happy that way. I'll just stay away from the nasty stuff.

    (Well, except I have a recipe for a Velveeta-based chili cheese dip. It's appalling but really tasty after a few beers.)

  16. MAGA by SimonInOz · · Score: 4, Funny

    Clearly, we need to make America Grate again.

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  17. Re:Coincidence I read about this last night by KiloByte · · Score: 4, Informative

    There's something worse: American "chocolate". I first thought the sample I tried is badly spoiled -- it tasted like vomit. Turns out, US manufacturers intentionally add butyric acid (which is a good part of what makes vomit smell) because it was what "consumers demand".

    Early on, chocolate production in the US was done with exceptionally bad hygiene and poor process, resulting in a product that was spoiled and in any civilised setting would be thrown out. Yet like that cheese gunk, companies instead make people think this is what chocolate tastes like.

    Being able to legally call a product with no cocoa at all "chocolate" doesn't help, either.

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  18. Re:The cheesiest by Barsteward · · Score: 3, Funny

    they could process it into house style bricks, leave it outside for a few months to go stale and hard and then Trump can use them to build his wall. might attract all the "rats" he complains about too...

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  19. Re:Cow Milk by cyberchondriac · · Score: 3, Funny

    My blood is curdling, there's got to be a cheddar way of making cheesy jokes, just leave it brie. Some cultures are better left provolone.

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