Americans Are Drinking Less Milk, But They Can't Get Enough Cheese

Americans love their cheese, but maybe not as much as dairy farmers do. Even after people cut back on milk use for decades -- a consequence of more drink options including juices, sodas and sports drinks -- U.S. cows are producing the most ever. While the glut has eroded dairy income, the industry is getting a jolt from demand for high-fat byproducts that have given the world creations like the Grilled Cheese Stuffed Crust Pizza and led McDonald’s Corp. to start using butter on its Egg McMuffins rather than margarine. The jump in total domestic cheese consumption over the past two years was the biggest since 2000, with Americans eating the most on average since the government began tracking the data in 1975. Butter demand also advanced, and more gains are expected this year. The sales surge is helping to boost slumping U.S. milk prices at a time when surpluses forced production cutbacks in most of the world’s major exporters.