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

  • U.S. cheese, butter demand are at records and heading higher
  • Milk-fat use helping to ease a glut as cows produce most ever
Photographer: Daniel Acker/Bloomberg
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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.