# Economist: Oversupply of milk, cheese looms in 2021 | Capital Press

> University of Minnesota economist Marin Bozic warned of a cheese oversupply over the next six months as a new Michigan plant ramps up to 800,000 pounds of cheddar daily. He said U.S. cheese capacity will rise 7% by next summer while domestic demand grows only 1-2% annually, and the government food box program may end under a Biden administration.

- Date: 2020-12-04 · published 2020-12-04T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/4230-economist-oversupply-of-milk-cheese-looms-in-2021-capital-press
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Rising cheese capacity against slow demand growth implies downward pressure on cheese and milk prices, which weakens dairy-linked feed demand.

## Read by commodity

- MILK: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2020-12-08 | 5 | -33.2% | -4.7 | The expected cheese oversupply from new plant capacity, with demand growth lagging and food box purchases possibly ending, weighs on sentiment and forward prices. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2020-04-24 | [Idaho dairymen dump milk as demand, prices fall \| Capital Press](https://feedsoft.ai/events/6502-idaho-dairymen-dump-milk-as-demand-prices-fall-capital-press.md) | -13.8% | -7.5% |
| MILK | 2020-04-29 | [Historic Dairy Oversupply Results in Dumping](https://feedsoft.ai/events/5181-historic-dairy-oversupply-results-in-dumping.md) | -12.4% | -7.1% |
| MILK | 2020-03-31 | [Mielke: Dairy prices hemorrhaging \| Capital Press](https://feedsoft.ai/events/4155-mielke-dairy-prices-hemorrhaging-capital-press.md) | -14.4% | -18.8% |
| MILK | 2022-07-12 | [Lee Mielke: Dairy product demand weakening \| Capital Press](https://feedsoft.ai/events/40633-lee-mielke-dairy-product-demand-weakening-capital-press.md) | -0.8% | -12.3% |
| MILK | 2020-04-21 | [COVID-19 infects nearly all commodity prices \| Capital Press](https://feedsoft.ai/events/6503-covid-19-infects-nearly-all-commodity-prices-capital-press.md) | -1.6% | -8.7% |

## Sources

- capitalpress.com: https://capitalpress.com/2020/12/04/economist-oversupply-of-milk-cheese-looms-in-2021/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.