America Can’t Move Its Cheese

America’s cheese hoard continues to balloon to unprecedented levels, as producers fear the mountain could grow further and put even more dairy farmers out of business. About 1.4 billion pounds of American, cheddar and other kinds of cheese is socked away at cold-storage warehouses across the country, the biggest stockpile since federal record-keeping began a century ago.Driving the glut are cheese makers who ramped up production before trade tensions abroad tamped down demand for many of their products. Shifting tastes at home have further changed the outlook for traditional cheese makers. Many are paying to store their excess cheese in hopes demand and prices will improve.“There’s a whole ton of aged product laying around,” said Nate Donnay, director of Dairy Market Insight.Cheese, which has a limited shelf-life, is less valuable once it spends weeks in cold-storage, and producers are concerned that the glut and price drop that has come with it could eat into profits. Spot market prices for 40-pound blocks of cheddar fell around 25% this year from 2014 prices, while 500-pound barrels typically used for processed cheese declined 28%.Cheese exports have suffered since Mexico and China, major dairy buyers, instituted retaliatory tariffs on U.S. cheese and whey. Cheese shipments to Mexico in September were down more than 10% annually, according to the U.S. Dairy Export Council trade group, and shipments to China were down 63% annually.That leaves U.S. dairy producers relying more on a domestic market where tastes are changing.