Executive Summary U.S. dairy product production figures provided by USDA were recently updated with values spanning through Mar ’18. Highlights from the updated report include:

• Mar ’18 U.S. butter production increased 4.8% YOY to a record seasonal high for the month of March. Butter production has finished higher on a YOY basis over six consecutive months through Mar ’18.
• U.S. cheese production finished higher on a YOY basis for the 60^th consecutive month during Mar ’18, increasing by 2.7% to a record seasonal high for the month of March. U.S. dry whey production increased on a YOY basis for the 13^th time in the past 14 months, finishing up 1.5%.
• Combined production of U.S. nonfat dry milk and skim milk powder increased 3.6% on a YOY basis, finishing higher for the fourth time in the past five months. U.S. nonfat dry milk production increased 12.0% YOY throughout the month, more than offsetting a 22.2% decline in skim milk powder production.

Additional Report Details Butter – Production Reaches a Record Seasonal High, Finishes up 4.8% YOY According to USDA, Mar ’18 U.S. butter production increased 4.8% YOY, finishing at a record seasonal high for the month of March. Butter production has increased on a YOY basis over six consecutive months through March. A 17.8% YOY increase in butter production experienced throughout the Western U.S. more than offset declines in production experienced throughout the Central U.S. (-4.2%) and Atlantic U.S. (-8.9%) during Mar ’18. ’16-’17 annual butter production declined 1.9%, finishing at a six year low, however ’17-’18 YTD production figures have rebounded by 3.8% YOY throughout the first half of the production season. Cheese – Production Reaches a Record Seasonal High, Finishes up 2.7% YOY Mar ’18 total U.S. cheese production finished higher on a YOY basis for the 60^th consecutive month, finishing up 2.7% to a record seasonal high for the month of March. Cheddar cheese production declined 2.7% on a YOY basis throughout the month however the decline was more than offset by a 5.0% YOY increase in other-than-cheddar cheese production experienced throughout the month. ’16-’17 annual cheese production increased 3.0% to a record annual high as cheddar cheese production finished 4.9% higher, while ’17-’18 YTD production figures are up an additional 3.5% throughout the first half of the production season. Dry Whey – Production Increases YOY for the 13^th Time in the Past 14 Months, Finishes up 1.5% Mar ’18 U.S. dry whey production increased 1.5% YOY, finishing higher for the 13^th time in the past 14 months and reaching a six year seasonal high for the month of March. Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production also remained higher on a YOY basis throughout Mar ’18, increasing by 3.0%. Combined WPC and WPI production had declined on a YOY basis over 20 of the past 25 months through the end of 2016, prior to finishing higher throughout the past 13 months. Combined dry whey, WPC and WPI production remained strong throughout Mar ’18, finishing up 2.1%. ’16-’17 annual dry whey production increased 1.3% YOY while combined production of dry whey, WPC and WPI finished up 4.6%. ’17-’18 dry whey production is up an additional 6.7% YOY throughout the first half of the production season while combined production of dry whey, WPC and WPI is up 5.6%. NFDM/SMP – Higher NFDM Production Offsets Lower SMP Production, Total Production up 3.6% YOY Mar ’18 U.S. nonfat dry milk (NFDM) production increased 12.0% YOY, finishing higher for the eighth consecutive month and reaching a three year seasonal high for the month of March. 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 eighth consecutive month, however, as production declined 22.2%. The increase in NFDM production more than offset the decline in SMP production, resulting in combined production finishing 3.6% higher YOY. The YOY increase in combined NFDM and SMP production was the fourth experienced throughout the past five months. ’16-’17 annual combined production of NFDM and SMP increased 4.1% to a record annual high as production of both products finished higher. ’17-’18 YTD combined production of NFDM and SMP has increased an additional 1.9% throughout the first half of the production season. Overall, nonfat dry milk production increased most significantly YOY on a percentage basis during Mar ’18 while skim milk powder production experienced the largest YOY decline in production throughout the month.