Cheese is the largest product category for the dairy industry. Wholesale prices—prices paid to manufacturers—of Cheddar cheese serve as benchmarks for pricing many types of cheese and affect the pricing structure for most U.S. milk at the farm level. Between March 7 and May 2, wholesale prices for Cheddar cheese fell 35 percent because of effects of the COVID-19 pandemic. For the week ending May 2, the weighted-average price for Cheddar cheese was $1.134 per pound, and the lowest since 2009, when the Great Recession had a significant impact on global dairy demand. By the week ending May 8, that price had risen to $1.146 per pound. As research has shown that declining incomes usually have a negative effect on cheese consumption, Americans facing financial hardships caused by the pandemic are likely buying less cheese. Furthermore, cheese consumption has shifted from food service establishments, where people eat higher proportions of cheese, to at-home consumption. This shift has caused supply chain bottlenecks due to logistics and smaller unit-packaging needs of retail stores. At the same time, the dairy industry has entered its peak season of milk production. Global dairy trade is also affected by the pandemic, limiting the ability of U.S. suppliers to export cheese and other dairy products. Cheese prices are currently expected to strengthen as the year progresses. This chart is based on Economic Research Service’s Livestock, Dairy and Poultry Outlook, April 2020.