meta Italian Cheeses Propel U.S. to Record 14.25B Pound Output | The Bullvine

Italian Cheeses Propel U.S. to Record 14.25B Pound Output

U.S. cheese production hit a record 14.25B lbs in 2024, driven by Italian styles like Mozzarella (+3.6%) while Cheddar fell to a 4-year low (-6.1%). Farmers adapted to milk shortages by prioritizing exports and high-component milk, reshaping dairy strategies amid EU tariff risks.

Summary:

In 2024, the U.S. achieved a record cheese production of 14.25 billion pounds, mainly due to increased demand for Italian cheeses like Mozzarella. While Cheddar production dropped to its lowest level since 2020, farmers focused on exporting and improving milk quality to boost profits. Gouda also saw significant growth due to demand in Asia, though future EU tariffs could pose challenges. As the industry adapts to changing markets and milk supplies, strategies like hedging and regional planning will be essential to sustain growth amid shifting domestic and international pressures.

Key Takeaways:

  • Record Output: U.S. cheesemakers produced 14.25B pounds (+41.76M YoY), driven by Italian styles like Mozzarella (+3.6%) and Gouda (+30.2%) despite milk shortages.
  •  Italian Cheese Surge: Italian cheeses surpassed 6B pounds (+2.4% YoY), with exports offsetting domestic foodservice declines.
  • Cheddar Decline: Cheddar fell to 3.85B pounds (-6.1%), lowest since 2020, due to scarce milk, high restaurant prices, and shifts to Gouda.
  • Price Volatility: Monthly Cheddar production drops caused spring/fall price spikes (peaking at $1.92/lb vs 5-year avg $1.68).
  • Export Risks: Gouda/Mozzarella farmers face EU tariff threats, shipping cost hikes (+22% YoY), and currency risks (Mexican peso volatility cut profits 4%).

U.S. cheese production hit a historic 14.25 billion pounds in 2024 (+41.76M YoY), powered by Italian-style cheeseslike Mozzarella while Cheddar output fell to a 4-year low. Farmers must now compete on milk components, not just volume.

Table 1: 2024 U.S. Cheese Production Trends 

Cheese TypeProduction (B lbs)YoY ChangeKey DriverSource
Italian6.00+2.4%Mozzarella exports (+3.6%)USDA Jan-Nov 2024
Cheddar3.85-6.1%Domestic demand slumpUSDA Dec 2024
Gouda0.080+30.2%Asian market expansionEU Commission Q4 2024

Italian Cheese Drives Growth 

Italian cheese crossed 6 billion pounds (+2.4% YoY) for the first time, led by: 

  • Mozzarella exports: 38% shipped to Mexico/Asia (USDA Jan- Nov 2024)
  • Component premiums: up to $0.20/cwt bonuses for high-fat milk (Dairy Farmers of America Q3 2024)
  • Jersey herds: 18% YoY growth for butterfat optimization

Why it matters: Jersey cows now yield $2.18/cwt premiums over Holsteins (USDA 2024), reshaping herd genetics. 

Table 2: Cheddar Price Volatility (2024) 

PeriodAvg Price ($/lb)Peak Price ($/lb)5-Year Avg ($/lb)
Spring1.851.921.68
Fall1.781.891.68
Source: CME Group (2/9/2025), USDA AMS

Cheddar’s Decline Reshapes Markets 

American cheese output fell 3.9%, with Cheddar plunging to 3.85B pounds (-6.1%)—lowest since 2020. Farmers faced: 

  • Processed cheese slump: Demand for slices fell 9% (CME Group 2/9/2025)
  • Milk cuts: 23% fewer Cheddar plant contracts
 Cheddar FarmersItalian/Gouda Suppliers
2025 RiskDomestic demand shiftsEU trade rule changes
OpportunityNew processing plantsAsian export growth

Table 3: U.S. Cheese Export Markets (2024) 

Region% of ExportsKey ProductGrowth vs 2023
Mexico38%Mozzarella+17%
Asia29%Gouda+25.6%
EU16%Specialty-4% (Tariff risk)
Source: USDA FAS (2024), Pecorino Romano Consortium

Gouda’s 30% Surge Faces EU Hurdles 

Gouda production jumped to 80.27M pounds (+30.2%), driven by Asian markets, but EU tariffs threaten $0.15/lbprofits (EU Commission Q4 2024). Farmers near Wisconsin (+14%) and Idaho (+9%) plants gained: 

  • Stable contracts: 64% include currency hedging
  • Regional buyers: new processors in export zones

Strategic Shifts for 2025 

  1. Test milk monthly: butterfat/protein checks for premiums (USDA §120.5)
  2. Hedge prices: Lock in 40-60% via CME futures
  3. Regional focus

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