It’s a process cheese product! My uncle used to work at a factory that made it so I know their process.

It was only about 40% cheese, and the cheese utilized was a blend of the bits left over from making things like cheese sticks. This was combined with milk, milk proteins, and several emulsifiers to keep it from separating into oil and solids as it solidifies and again if it’s melted.

It’s called a “pasteurized prepared cheese product” because it doesn’t contain enough cheese to legally call itself cheese or any variant of processed cheese.