Exports from the European Union have climbed so far this year, it says, as the bloc's once-largest customer, Russia, banned trade in foodstuffs in retaliation for the sanctions.
Europe therefore stated looking for alternative markets such as Asia and the Middle East.
The US, in turn, has been snapping up cheese from Europe because of the cheap prices.
“European dairy products are so cheap right now that the US itself has become the new No. 1 customer for some products — imports of EU butter doubled last year and rose 17 percent for cheese, according to the European Commission,” the agency says.
"It's been difficult for them to export given the strong dollar, and they're sucking in imports," Kevin Bellamy, a global dairy market strategist at Rabobank International in Utrecht, Netherlands told Bloomberg. “Where the US has lost out on business, Europe has gained.”
That doesn't mean European dairy farmers are happy about the situation. Sinking milk princes in the EU have dropped to the lowest levels since 2010, and the low prices could put many dairy farmers out of business.
Russia's 2014 ban on most dairy products from the EU, the US, Australia and Norway has also disrupted diary prices.
American dairy farmers have also raised concerns about the influx of foreign dairy products driving down domestic prices and profits.
Whatever the solution, it isn't as simple as asking everyone to do their part and eat some cheddar, concludes another media source, the International Business Times.