Part of the cause is that Russia is no longer in the EU trading game, having embargoed EU products in response to European sanctions for its incursion into Ukraine.
That means the EU's producers have been selling into Asian and Middle Eastern markets, eating into consumer bases that would have bought American before.
And the strong dollar and wobbling Euro currency have made the EU's dairy products even more attractive.
All of this has left many American cheese producers out to pasture, during a record year for production in the country.
But it's not just about foreign consumers - Americans, too, are enjoying cheaper prices for European cheeses created by the healthier dollar.
US imports of EU butter doubled last year, while cheese imports rose 17 percent.
So even at home US producers are losing out.
'It's been difficult for [the US] to export, given the strong dollar, and they're sucking in imports,' Kevin Bellamy, a global dairy market strategist at Rabobank International in the Netherlands told Bloomberg. 'Where the U.S. has lost out on business, Europe has gained.
Read more: http://www.dailymail.co.uk/news/article-3566307/No-whey-America-sitting-1-1BILLION-pounds-unsold-cheese-butter-strong-dollar-Euro-imports-lead-biggest-inventory-32-years.html#ixzz47FYPi76I
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