An interesting side effect of the dire situation in Europe is for the first time in living memory big European dairy traders from countries such as the Netherlands are looking towards the US for cheaper cheese imports. Prices in the US are much lower than Europe but the most popular cheese on the other side of the Atlantic tends to be cheaper processed cheese that is used for burgers.
Drought in Europe along with the rise of corn prices due to Russia’s invasion of Ukraine has driven up dairy prices to an uncompetitive level in Europe in comparison to the US. The volumes of cheese being imported from the US are still at a low level in comparison to the overall global industry but the sharp increase of the import quantities are a sure sign of the problems faced in Europe. 306 tons of American cheese was exported to Europe in February of this year which is more than three times the average quantity exported in the same month in previous years. If European milk supply continues to flounder it could be a more permanent trend to see American intervention in both milk and cheese supply. (Independent)