U.S. Dairy Product Production Update – Jun ’20
Executive Summary
U.S. dairy product production figures provided by the USDA were recently updated with values spanning through Apr ’20. Highlights from the updated report include:
Cheese – Production Declines by an Eight and a Half Year High Rate, Finishes Down 1.7% YOY
U.S. cheese production declined on a YOY basis for the third time in the past four months, finishing down 1.7% and reaching a three year seasonal low level. The YOY decline in cheese production was the largest experienced throughout the past eight and a half years on a percentage basis. Lower YOY production experienced throughout the Western U.S. (-4.2%) and Atlantic U.S. (-0.9%) more than offset higher production experienced throughout the Central U.S. (+0.5%). Other-than-cheddar cheese production declined 5.4% on a YOY basis throughout the month, more than offsetting a 7.8% YOY increase in cheddar cheese production. Cheddar cheese production has finished higher on a YOY basis over three consecutive months through Apr ’20.
’18-’19 annual cheese production increased 1.7% YOY, reaching the highest annual level on record, as a 2.6% YOY increase in other-than-cheddar cheese more than offset a 0.5% YOY decline in cheddar cheese production. Cheddar cheese production remained at the second highest annual level on record, however. ’19-’20 YTD cheese production has declined by 0.5% on a YOY basis throughout the first seven months of the production season.
Dry Whey – Production Increases YOY for the Eighth Time in the Past Nine Months, Finishes up 3.8%
U.S. dry whey production increased 3.8% on a YOY basis during Apr ’20, finishing higher on a YOY basis for the eighth time in the past nine months. YOY increases in production were widespread regionally and led by the Western U.S. (+4.0%), followed by the Central U.S. (+3.5%) and Atlantic U.S. (+3.1%). Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production remained lower on a YOY basis for the 11th consecutive month during Apr ’20, however, finishing down 6.3%. Combined production of dry whey, WPC and WPI finished 0.3% lower YOY, declining on a YOY basis for the third time in the past four months.
’18-’19 annual dry whey production declined 5.2% YOY, reaching a four year low level, while combined production of dry whey, WPC and WPI declined 4.0%, finishing at a three year low. ’19-’20 YTD dry whey production has rebounded by 3.9% on a YOY basis throughout the first seven months of the production season however combined production of dry whey, WPC and WPI has declined by 0.1%.
NFDM/SMP – Combined Production Higher YOY for the Tenth Consecutive Month, Finishes up 4.5%
U.S. nonfat dry milk (NFDM) production increased on a YOY basis for the 11th time in the past 12 months during Apr ’20, finishing up 9.3%. YOY increases in production were widespread regionally and led by the Central U.S. (+14.2%), followed by the Western U.S. (+10.9%) and Atlantic U.S. (+0.5%).
Production of skim milk powder (SMP), which is more suited to the requirements of most global markets, finished lower on a YOY basis for the second consecutive month during Apr ’20, however, declining by 12.7%. Apr ’20 combined production of NFDM and SMP remained 4.5% higher on a YOY basis, finishing higher for tenth consecutive month.
’18-’19 annual combined production of NFDM and SMP increased 0.1% YOY, reaching the highest annual level on record. SMP production increased 2.6% on a YOY basis throughout the period, more than offsetting a 0.7% YOY decline in NFDM production. ’19-’20 YTD combined production of NFDM and SMP has increased by an additional 5.6% on a YOY basis throughout the first seven months of the production season.
Overall, butter production increased most significantly YOY on a percentage basis during Apr ’20, while skim milk powder production declined most significantly on a percentage basis throughout the month.
- U.S. butter production increased on a YOY basis for the tenth time in the past 11 months during Apr ’20, finishing up 25.1% and reaching the highest monthly level on record.
- U.S. cheese production declined 1.7% on a YOY basis during Apr ’20, reaching a three year low seasonal level, however dry whey production increased on a YOY basis for the eighth time in the past nine months, finishing up 3.8%.
- Combined production of U.S. nonfat dry milk and skim milk powder increased 4.5% on a YOY basis during Apr ’20, finishing higher for the tenth consecutive month. Nonfat dry milk production increased 9.3% YOY throughout the month, more than offsetting a 12.7% YOY decline in skim milk powder production.
Cheese – Production Declines by an Eight and a Half Year High Rate, Finishes Down 1.7% YOY
U.S. cheese production declined on a YOY basis for the third time in the past four months, finishing down 1.7% and reaching a three year seasonal low level. The YOY decline in cheese production was the largest experienced throughout the past eight and a half years on a percentage basis. Lower YOY production experienced throughout the Western U.S. (-4.2%) and Atlantic U.S. (-0.9%) more than offset higher production experienced throughout the Central U.S. (+0.5%). Other-than-cheddar cheese production declined 5.4% on a YOY basis throughout the month, more than offsetting a 7.8% YOY increase in cheddar cheese production. Cheddar cheese production has finished higher on a YOY basis over three consecutive months through Apr ’20.
’18-’19 annual cheese production increased 1.7% YOY, reaching the highest annual level on record, as a 2.6% YOY increase in other-than-cheddar cheese more than offset a 0.5% YOY decline in cheddar cheese production. Cheddar cheese production remained at the second highest annual level on record, however. ’19-’20 YTD cheese production has declined by 0.5% on a YOY basis throughout the first seven months of the production season.
Dry Whey – Production Increases YOY for the Eighth Time in the Past Nine Months, Finishes up 3.8%
U.S. dry whey production increased 3.8% on a YOY basis during Apr ’20, finishing higher on a YOY basis for the eighth time in the past nine months. YOY increases in production were widespread regionally and led by the Western U.S. (+4.0%), followed by the Central U.S. (+3.5%) and Atlantic U.S. (+3.1%). Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production remained lower on a YOY basis for the 11th consecutive month during Apr ’20, however, finishing down 6.3%. Combined production of dry whey, WPC and WPI finished 0.3% lower YOY, declining on a YOY basis for the third time in the past four months.
’18-’19 annual dry whey production declined 5.2% YOY, reaching a four year low level, while combined production of dry whey, WPC and WPI declined 4.0%, finishing at a three year low. ’19-’20 YTD dry whey production has rebounded by 3.9% on a YOY basis throughout the first seven months of the production season however combined production of dry whey, WPC and WPI has declined by 0.1%.
NFDM/SMP – Combined Production Higher YOY for the Tenth Consecutive Month, Finishes up 4.5%
U.S. nonfat dry milk (NFDM) production increased on a YOY basis for the 11th time in the past 12 months during Apr ’20, finishing up 9.3%. YOY increases in production were widespread regionally and led by the Central U.S. (+14.2%), followed by the Western U.S. (+10.9%) and Atlantic U.S. (+0.5%).
Production of skim milk powder (SMP), which is more suited to the requirements of most global markets, finished lower on a YOY basis for the second consecutive month during Apr ’20, however, declining by 12.7%. Apr ’20 combined production of NFDM and SMP remained 4.5% higher on a YOY basis, finishing higher for tenth consecutive month.
’18-’19 annual combined production of NFDM and SMP increased 0.1% YOY, reaching the highest annual level on record. SMP production increased 2.6% on a YOY basis throughout the period, more than offsetting a 0.7% YOY decline in NFDM production. ’19-’20 YTD combined production of NFDM and SMP has increased by an additional 5.6% on a YOY basis throughout the first seven months of the production season.
Overall, butter production increased most significantly YOY on a percentage basis during Apr ’20, while skim milk powder production declined most significantly on a percentage basis throughout the month.