U.S. Dairy Product Production Update – Sep ’16
Executive Summary
U.S. dairy product production figures provided by USDA were recently updated with values spanning through Jul ’16. Highlights from the updated report include:
• Jul ’16 U.S. butter production increased to a new record high level for the month of July, finishing up 6.0% YOY.
• U.S. cheese production remained strong during Jul ’16, increasing on a YOY basis for the 40th consecutive month and finishing at a record high volume for the month of July.
• Combined production of U.S. nonfat dry milk and skim milk powder increased on a YOY basis for the third consecutive month during Jul ’16, finishing up 4.8%.
Additional Report Details
Butter – Production Reaches New Record High for the Month of July, Finishes up 6.0% YOY
According to USDA, Jul ’16 U.S. butter production of 143.6 million pounds continues to declined seasonally but finished 6.0% higher on a YOY basis, reaching a new record high production level for the month of July. The YOY increase was in addition to a 1.7% upward to revision to Jul ’15 butter production totals. YOY increases in butter production were led by the Western U.S., which increased production by 14.0% YOY. The YOY increase in production within the Western U.S. more than offset a 5.5% YOY decline in production experienced throughout the Atlantic U.S. and a 1.8% YOY decline in Central U.S. butter production. ’14-’15 annual butter production increased 0.4% YOY following recent upwards revisions while ’15-’16 YTD butter production is up an additional 3.7% YOY throughout the first ten months of the production season.
Cheese – Production Reaches New Record High for the Month of July, Finishes up 1.4% YOY
Jul ’16 total U.S. cheese production of 1.02 billion pounds increased YOY for the 40th consecutive month, finishing 1.4% above the previous year and reaching a new record high production level for the month of July. The YOY increase was in addition to a 1.4% upward to revision to Jul ’15 cheese production totals. Cheddar cheese production of 281.5 million pounds declined 1.7% YOY however the decline in cheddar production was more than offset by a 2.6% increase in other-than-cheddar cheese production. ’14-’15 annual total cheese production finished up 3.2% YOY while cheddar cheese production finished up 3.7%. ’15-’16 YTD cheese production is up an additional 2.0% YOY throughout the first ten months of the production season despite cheddar cheese production remaining flat throughout the period.
Dry Whey – Production Increases on a Six Year July High, Finishes up 2.7% YOY
Jul ’16 U.S. dry whey production of 83.9 million pounds increased on a YOY basis for the third time in the past four months, finishing 2.7% above the previous year and reaching a six year high for the month of July. Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production remained lower on a YOY basis, however, declining by 6.2% throughout the month. Combined WPC and WPI production has declined on a YOY basis for 20 consecutive months through July. Combined dry whey, WPC and WPI production declined 0.7% YOY during Jul ’16, finishing lower for the sixth consecutive month. ’15-’16 YTD dry whey production is up 5.3% YOY throughout the first ten months of the production season, with combined production of dry whey, WPC and WPI up 0.3% over the same period.
NFDM/SMP – Combined Production Finishes Higher YOY for the Third Consecutive Month
Jul ’16 U.S. nonfat dry milk (NFDM) production of 152.9 million pounds declined on a YOY basis for the tenth consecutive month, finishing 1.5% below the previous year. Skim milk powder (SMP), which is more suited to the requirements of most global markets, increased YOY for the ninth consecutive month, as production of 46.3 million pounds finished 32.9% above the previous year. Overall, Jul ’16 combined production of NFDM and SMP increased on a YOY basis for the third consecutive month, finishing up 4.8% YOY. Despite the recent YOY increases, combined production of NFDM and SMP remains down 3.6% YOY throughout the first ten months of the ’15-’16 production season.
Overall, SMP production continued to increase most significantly YOY during Jul ’16 on a percentage basis, followed by butter. Cheddar cheese and NFDM production declined most significantly on a percentage basis throughout the month.
Cheese – Production Reaches New Record High for the Month of July, Finishes up 1.4% YOY
Jul ’16 total U.S. cheese production of 1.02 billion pounds increased YOY for the 40th consecutive month, finishing 1.4% above the previous year and reaching a new record high production level for the month of July. The YOY increase was in addition to a 1.4% upward to revision to Jul ’15 cheese production totals. Cheddar cheese production of 281.5 million pounds declined 1.7% YOY however the decline in cheddar production was more than offset by a 2.6% increase in other-than-cheddar cheese production. ’14-’15 annual total cheese production finished up 3.2% YOY while cheddar cheese production finished up 3.7%. ’15-’16 YTD cheese production is up an additional 2.0% YOY throughout the first ten months of the production season despite cheddar cheese production remaining flat throughout the period.
Dry Whey – Production Increases on a Six Year July High, Finishes up 2.7% YOY
Jul ’16 U.S. dry whey production of 83.9 million pounds increased on a YOY basis for the third time in the past four months, finishing 2.7% above the previous year and reaching a six year high for the month of July. Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production remained lower on a YOY basis, however, declining by 6.2% throughout the month. Combined WPC and WPI production has declined on a YOY basis for 20 consecutive months through July. Combined dry whey, WPC and WPI production declined 0.7% YOY during Jul ’16, finishing lower for the sixth consecutive month. ’15-’16 YTD dry whey production is up 5.3% YOY throughout the first ten months of the production season, with combined production of dry whey, WPC and WPI up 0.3% over the same period.
NFDM/SMP – Combined Production Finishes Higher YOY for the Third Consecutive Month
Jul ’16 U.S. nonfat dry milk (NFDM) production of 152.9 million pounds declined on a YOY basis for the tenth consecutive month, finishing 1.5% below the previous year. Skim milk powder (SMP), which is more suited to the requirements of most global markets, increased YOY for the ninth consecutive month, as production of 46.3 million pounds finished 32.9% above the previous year. Overall, Jul ’16 combined production of NFDM and SMP increased on a YOY basis for the third consecutive month, finishing up 4.8% YOY. Despite the recent YOY increases, combined production of NFDM and SMP remains down 3.6% YOY throughout the first ten months of the ’15-’16 production season.
Overall, SMP production continued to increase most significantly YOY during Jul ’16 on a percentage basis, followed by butter. Cheddar cheese and NFDM production declined most significantly on a percentage basis throughout the month.