Cheese prices weaken The one good thing during 2000 that dairy producers and processors could count on was a strong U.S. economy. For most of the year inflation and unemployment were low and the economy grew at a rate of between 2-5 percent each quarter. When people are employed, feel confident about their job and are making more money, they tend to buy more dairy products.
People are busy and have money in their pocket.
Therefore they are more likely to eat outside of the home. When that occurs, consumption of dairy products like cheese, butter, and ice cream increases. The latest data for consumption of dairy products looks positive for the period August October 2000. The problem is the U.S. economy is showing signs of slowing down. The concern is that these growth rates could languish at 1-2 percent next year, or even dip into negative territory.