Executive Summary U.S. dairy product production figures provided by the USDA were recently updated with values spanning through Nov ’20. Highlights from the updated report include:

• Nov ’20 U.S. butter production finished 4.0% higher on a YOY basis, remaining at a record high seasonal level for the fifth consecutive month.
• Nov ’20 U.S. cheese production finished 0.6% higher on a YOY basis, reaching a record high seasonal level, however dry whey production finished lower on a YOY basis for the fourth consecutive month, declining by 5.9% and reaching a 36 year low seasonal level.
• Combined production of U.S. nonfat dry milk and skim milk powder increased 8.6% on a YOY basis during Nov ’20, remaining at a record high seasonal level. Nonfat dry milk production increased 9.2% YOY throughout the month, reaching a record high seasonal level, while skim milk powder production increased to a seven year high seasonal level.

Additional Report Details Butter – Production Remains at a Record High Seasonal Level, Finishes up 4.0% YOY According to the USDA, Nov ’20 U.S. butter production finished 4.0% higher on a YOY basis, remaining at a record high seasonal level for the fifth consecutive month. The YOY increase in butter production was the 16^th experienced throughout the past 18 months. YOY increases in production were widespread and led by the Western U.S. (+4.3%), followed by the Central U.S. (+3.8) and the Atlantic U.S. (+3.5%). ’18-’19 annual butter production increased 1.3% YOY, reaching the highest annual level on record, while ’19-’20 annual butter production increased an additional 5.6%. Cheese – Production Reaches a Record High Seasonal Level, Finishes up 0.6% YOY U.S. cheese production finished 0.6% higher on a YOY basis throughout Nov ’20, reaching a record high seasonal level. The YOY increase in cheese production was the fourth experienced throughout the past six months. Higher cheese production experienced throughout the Central U.S. (+3.1%) more than offset reductions in Atlantic U.S. (-0.6%) and Western U.S. (-1.7%) production throughout the month. Cheddar cheese production increased 3.7% on a YOY basis throughout the month, more than offsetting a 0.6% YOY decline in other-than-cheddar cheese production. The YOY increase in cheddar cheese production was the ninth experienced throughout the past ten months. ’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 annual cheese production remained flat on a YOY basis as a 1.1% YOY increase in cheddar cheese production offset a 0.4% YOY decline in other-than-cheddar cheese production. Dry Whey – Production Declines to a 36 Year Seasonal Low Level, Finishes Down 5.9% YOY U.S. dry whey production declined 5.9% on a YOY basis throughout Nov ’20, reaching a 36 year low seasonal level. The YOY decline in dry whey production was the fourth experienced in a row. YOY declines in production were widespread and led by the Atlantic U.S. (-8.7%), followed by the Central U.S. (-6.6) and the Western U.S. (-1.4%). Oct ’20 dry whey production figures were also revised 6.7% lower than previously stated in the most recent report. Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production finished lower on a YOY basis for the 17^th time in the past 18 months during Nov ’20, declining by 2.7%. Combined production of dry whey, WPC and WPI finished 4.6% lower on a YOY basis throughout the month. ’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 annual dry whey production rebounded by 1.1% on a YOY basis however combined production of dry whey, WPC and WPI declined by 0.8%. NFDM/SMP – Combined Production Remains at a Record High Seasonal Level, Finishes up 8.6% YOY U.S. nonfat dry milk (NFDM) production increased 9.2% on a YOY basis throughout Nov ’20, reaching a record high seasonal level. The YOY increase in NFDM production was the fourth experienced in a row and the largest experienced throughout the past seven months on a percentage basis. YOY increases in production were widespread and led by the Central U.S. (+11.0%), followed by the Western U.S. (+9.2) and the Atlantic U.S. (+7.2%). Production of skim milk powder (SMP), which is more suited to the requirements of most global markets, finished higher on a YOY basis for the seventh consecutive month during Nov ’20, increasing by 6.8% and reaching a seven year high seasonal level. Combined production of NFDM and SMP finished 8.6% above previous year levels, increasing on a YOY basis for the fourth consecutive month and reaching a record high seasonal level. ’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 annual combined production of NFDM and SMP increased by an additional 5.2% on a YOY basis on a 3.2% YOY increase in NFDM production and an 11.7% YOY increase in SMP production. Overall, nonfat dry milk production increased most significantly YOY on a percentage basis during Nov ’20, followed by total powder production, while dry whey production declined most significantly on a percentage basis throughout the month.