When times are tough, should you spend money on natural Cheddar or opt for processed American cheese? It all depends on how it's to be used.
Process cheese is a modified form made from one or more natural cheese varieties that have been shredded, mixed and heated (pasteurized). The heating stops the aging process of cheese, lengthens shelf life and gives a mild flavor.American process has a mild Cheddar flavor because it is made primarily from cheeses in the Cheddar family.
If process cheese is spurned by connoisseurs, it does have a place in cooking and baking for its meltability. It's always smooth and never separates when heated. Natural cheese, on the other hand, should be shredded and melted in a sauce base or bechamel for cheese sauce.
Natural-cheese boosters claim you can use less in dishes (because it's stronger in flavor); thus it may be less expensive than process cheese in the long run.
Pasteurized process cheese food and cheese spread are products similar to process cheese except that additional milk products have been added. Slices of process cheese food are usually individually wrapped because they are softer than process cheese. The softer the product, the less cheese it contains. All must be more than half cheese by weight.