Cheese Dragons are not actually alive. They are enchanted items of food that act almost identically to dragons. They have no need to eat, but they must “live” in humid environments or they will dry out and harden.

Guterman was created at a German festival by a drunken sorcerer to win the cheese carving event.  However, things went awry as Guterman was suddenly given the gift of life, and wanted to eat many cheeses, thus obliterating the competition.  The sorcerer won the competition for such realism, and Guterman ran off to go find more cheese and other cow, goat, and sheep substances.  While Guterman has no need to eat, that doesn't mean he doesn't enjoy it.