Executive Summary U.S. dairy product production figures provided by USDA were recently updated with values spanning through Apr ’16. Highlights from the updated report include: • Apr ’16 U.S. butter production increased to a new record high level for the month of April, finishing up 6.4% YOY. • U.S. cheese production remained strong during Apr ’16, increasing on a YOY basis for the 37th consecutive month and finishing at a record high volume for the month of April. • Combined production of U.S. nonfat dry milk and skim milk powder remained lower on a YOY basis for the 12th consecutive month during Apr ’16, finishing down 0.3%. Additional Report Details Butter – Production Reaches New Record High for the Month of April, Finishes up 6.4% According to USDA, Apr ’16 U.S. butter production of 176.0 million pounds finished 6.4% higher on a YOY basis, reaching a new record high production level for the month of April. YOY increases in butter production were widespread across the U.S. and led by the Atlantic region, which increased production by 12.2% YOY. Butter production within the Central U.S. and Western U.S. increased by 7.8% and 4.1%, respectively, during Apr ’16. ’14-’15 annual butter production finished down 0.7% YOY to a four year low however ’15-’16 YTD butter production is up 3.7% YOY throughout the first seven months of the production season. Cheese – Production Reaches New Record High for the Month of April, Finishes up 1.4% Apr ’16 total U.S. cheese production of 991.7 million pounds increased YOY for the 37th consecutive month, finishing 1.4% higher than the previous year and reaching a new record high production level for the month of April. Cheddar cheese production of 297.0 million pounds was particularly strong, finishing up 3.3% YOY, while other-than-Cheddar cheese production increased by 0.6% YOY. ’14-’15 annual total cheese production finished up 3.0% YOY while cheddar cheese production finished up 3.1%. ’15-’16 YTD cheese production is up an additional 2.3% YOY throughout the first seven months of the production season. Dry Whey – Production Increases on a YOY Basis for the First Time in Three Months Apr ’16 U.S. dry whey production of 82.3 million pounds increased on a YOY basis for the first time in three months, finishing 5.3% above the previous year. Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production remained lower on a YOY basis, however, declining by 4.6% throughout the month. The increase in dry whey production more than offset declines in WPC and WPI production, as Apr ’16 combined dry whey, WPC and WPI production finished 1.4% above the previous year. ’15-’16 YTD dry whey production is up 7.8% YOY throughout the first seven months of the production season, with combined production of dry whey, WPC and WPI up 1.9% over the same period. NFDM/SMP – Combined Production Declines YOY for the 12th Consecutive Month Apr ’16 U.S. nonfat dry milk (NFDM) production of 170.0 million pounds declined YOY for the seventh consecutive month, finishing 6.0% below the previous year. Skim milk powder (SMP), which is more suited to the requirements of most global markets, increased YOY for the sixth consecutive month, as production of 43.3 million pounds finished 30.7% above the previous year. Overall, Apr ’16 combined production of NFDM and SMP declined YOY for the 12th consecutive month, falling 0.3% YOY. Combined production of NFDM and SMP is down 5.9% YOY throughout the first seven months of the ’15-’16 production season. Overall, SMP production increased most significantly YOY during Apr ’16 on a percentage basis, followed by butter and dry whey. NFDM production declined the most on a percentage basis throughout the month, resulting in a slight YOY decline in total powder production.