Study: Rising demand drives growth in U.S. milk production
The cheese category has grown over several decades as demand for natural cheeses like American and Italian-style cheese has grown.
Domestically, Americans are eating more cheese, yogurt and butter, which more than offsets declines in fluid milk consumption, according to a report published by Rabobank, The Netherlands. The rest of the world is also demanding more U.S. dairy products. Over the past 10 years, U.S. milk production has increased by 13%, accommodating domestic and international demand growth, which has resulted from rising incomes and the expansion of quick-service restaurants. Lower milk prices have also encouraged cheese manufacturers to increase production, leading to high stock levels.
According to USDA data, Americans drank 149 pounds of milk per capita in 2017, down from 247 pounds in 1975. Over the same period, per capita consumption of cheese grew from 14.3 pounds to 36.9 pounds. The 22.6-pound increase in per capita cheese consumption over this period equates to 226 pounds of milk because it takes about 10 pounds of milk to produce a pound of cheese. As a result, the 98-pound annual decrease in fluid milk consumption has been more than offset by the 226-pound increase in milk used to manufacture cheese.