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Strong export demand keeping record cheese stocks in balance

A dairy market analyst expects strong export demand to help move large cheese inventories.

Sarina Sharp with the Daily Dairy Report tells Brownfield U.S. cheese production and stocks are at record levels.

“Thankfully though, exports are also at record highs and the U.S. price relative to the cheese price in Europe and the cheese price in Oceania is extremely competitive,” she says.

Sharp says barriers to expansion are higher in other countries giving American farmers additional opportunities.

“I think the U.S. is well positioned to meet any new demand, and even to steal market share from some other dairy powerhouses,” she adds.

However, she says a global economic slowdown or reduced consumer demand would negatively impact prices.