Rise in production comes just as exports are hit by strong dollar; can you eat three pounds more? And it isn’t just cheese. The growing stacks of cheddar, which can be kept frozen for years, and other cheeses such as feta, which can be stored for only a couple of months, are just the tip of a surplus of U.S. agricultural products that is swamping markets for grains, meat and milk.
Supplies of cheese, meat and poultry started building as farmers decided to expand their herds and flocks two years ago when prices were high and export markets were hot. Abundant stockpiles of grain made it less risky by pushing down feed costs. But the steady climb in the dollar has deterred major foreign buyers, causing supplies to back up in the U.S. just as production is surging to records. That is sending prices for many goods to their lowest levels in years.