Strong Exports Offset Soft Cheddar Demand

A Dairy Herd Management article

As cheese demand falters, the U.S. dairy industry is becoming more dependent on shipping larger quantities of cheese overseas. However, for U.S exporters to continue these record-large shipments, U.S. cheese prices will need to retain their competitive advantage, said Betty Berning, analyst with the Daily Dairy Report.

“The recent run of sub-$1.50 per pound Cheddar block prices, a historically low price for the past several years at the CME spot session, could be the market’s response to maintain export demand,” she said.

In July, a record volume of cheese, nearly 144 million pounds, was shipped out of the United States, and cheese exports that month equated to more than 10% of U.S. production, according to data from USDA. However, when looking at shipments based on the average number of pounds exported per day, July exports came in third behind June 2026 and April 2026, Berning noted.

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