The present invention is directed to a method for making a particulate natural cheese suitable for preparation of processed cheese, as well as for use as a natural cheese, such as a snack food and shreds for cheese toppings. In the method, a milk coagulum is provided. The coagulum is cut to provide particulate cheese curds and whey. The cheese curd is cooked while undergoing agitation. Thereafter, whey is drained from the cheese curd while the cheese curd is continuously agitated. The cheese curd is then cooled or dried sufficiently to maintain the cheese curd as separate particles. Agitation may be used during or immediately after the cooling or drying step to insure separation of the cheese particles. The cheese particles formed may form friable lumps but do not knit during storage. The cheese particles are then packed into relatively large containers holding from about 1,000 to about 2,500 pounds of cheese curd or may be bulk packed in rail cars or trucks. The containers are preferably bulk bags with a liner of plastic or other disposable material. The liners are gas flushed before and during filling to reduce the oxygen content and inhibit mold growth. The liners may be disposed of after use in transporting the cheese curd to a final destination. The bulk bags are reusable with fresh liners. In an alternate embodiment, the cheese curd is drained without agitation to provide a cheese mat. The cheese mat is milled into cheese pieces prior to the cooling step.