U.S. Dairy Product Production Update – Mar ’20
Executive Summary
U.S. dairy product production figures provided by the USDA were recently updated with values spanning through Jan ’20. Highlights from the updated report include:
Cheese – Production Remains at a Record High Seasonal Level, Finishes up 0.4% YOY
U.S. cheese production declined to a six month low level during Jan ’20 but remained 0.4% higher on a YOY basis, finishing higher for the tenth time in the past 11 months and reaching a record high seasonal level. YOY increases in cheese production experienced throughout the Central U.S. (+1.6%) and Atlantic U.S. (+1.6%) more than offset lower production experienced throughout the Western U.S. (-1.1%). Other-than-cheddar cheese production increased 1.3% on a YOY basis throughout the month, more than offsetting a 1.8% YOY decline in cheddar cheese production. The YOY decline in cheddar cheese production was the fourth experienced throughout the past five months.
’18-’19 annual cheese production increased 1.7% YOY to a record annual high as a 2.8% YOY increase in other-than-cheddar cheese more than offset a 1.1% 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 increased an additional 0.2% on a YOY basis throughout the first third of the production season.
Dry Whey – Production Increases YOY for the Sixth Consecutive Month, Finishes up 4.4%
U.S. dry whey production increased 4.4% on a YOY basis during Jan ’20, finishing higher on a YOY basis for the sixth consecutive month. A 26.4% YOY increase in Central U.S. dry whey production more than offset lower Atlantic U.S. (-0.6%) and Western U.S. (-17.6%) production experienced throughout the month. Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production remained lower on a YOY basis for the 12th consecutive month during Jan ‘20, however, finishing down 6.9%. The YOY decline in combined WPC and WPI production more than offset the increase in dry whey production experienced throughout Jan ’20, resulting in combined production declining by 0.2%.
’18-’19 annual dry whey production declined 5.6% YOY, reaching a four year low level, while combined production of dry whey, WPC and WPI declined 4.5%, finishing at a three year low. ’19-’20 YTD dry whey production has rebounded by 5.6% on a YOY basis throughout the first third of the production season while combined production of dry whey, WPC and WPI has increased 1.3%.
NFDM/SMP – Combined Production Higher YOY for the Seventh Consecutive Month, Finishes up 5.8%
U.S. nonfat dry milk (NFDM) production remained higher on a YOY basis for the ninth consecutive month during Jan ’20, finishing up 0.3% and reaching a 55 year high seasonal level. A 23.3% YOY increase in Atlantic U.S. NFDM production more than offset lower Western U.S. (-1.6%) and Central U.S. (-11.3%) production experienced throughout the month.
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 fifth time in the past six months during Jan ’20, increasing by 29.5%. Jan ’20 combined production of NFDM and SMP increased 5.8% on a YOY basis, finishing higher for seventh consecutive month.
’18-’19 annual combined production of NFDM and SMP declined 2.0% from the record high level experienced throughout the previous production season. Production of NFDM and SMP declined by 1.2% and 4.4%, respectively, throughout the 12 month period. ’19-’20 YTD combined production of NFDM and SMP has rebounded by 7.4% on a YOY basis throughout the first third of the production season.
Overall, skim milk powder production increased most significantly YOY on a percentage basis during Jan ’20, while cheddar cheese production declined most significantly on a percentage basis throughout the month.
- U.S. butter production increased on a YOY basis for the eighth consecutive month during Jan ’20, finishing up 0.6% and reaching a record high seasonal level.
- U.S. cheese production increased 0.4% on a YOY basis during Jan ’20, reaching a record high seasonal level, while dry whey production remained higher on a YOY basis for the sixth consecutive month, finishing up 4.4%.
- Combined production of U.S. nonfat dry milk and skim milk powder increased 5.8% on a YOY basis during Jan ’20, finishing higher for the seventh consecutive month. Nonfat dry milk production increased 0.3% YOY throughout the month while skim milk powder production finished 29.5% higher YOY.
Cheese – Production Remains at a Record High Seasonal Level, Finishes up 0.4% YOY
U.S. cheese production declined to a six month low level during Jan ’20 but remained 0.4% higher on a YOY basis, finishing higher for the tenth time in the past 11 months and reaching a record high seasonal level. YOY increases in cheese production experienced throughout the Central U.S. (+1.6%) and Atlantic U.S. (+1.6%) more than offset lower production experienced throughout the Western U.S. (-1.1%). Other-than-cheddar cheese production increased 1.3% on a YOY basis throughout the month, more than offsetting a 1.8% YOY decline in cheddar cheese production. The YOY decline in cheddar cheese production was the fourth experienced throughout the past five months.
’18-’19 annual cheese production increased 1.7% YOY to a record annual high as a 2.8% YOY increase in other-than-cheddar cheese more than offset a 1.1% 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 increased an additional 0.2% on a YOY basis throughout the first third of the production season.
Dry Whey – Production Increases YOY for the Sixth Consecutive Month, Finishes up 4.4%
U.S. dry whey production increased 4.4% on a YOY basis during Jan ’20, finishing higher on a YOY basis for the sixth consecutive month. A 26.4% YOY increase in Central U.S. dry whey production more than offset lower Atlantic U.S. (-0.6%) and Western U.S. (-17.6%) production experienced throughout the month. Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production remained lower on a YOY basis for the 12th consecutive month during Jan ‘20, however, finishing down 6.9%. The YOY decline in combined WPC and WPI production more than offset the increase in dry whey production experienced throughout Jan ’20, resulting in combined production declining by 0.2%.
’18-’19 annual dry whey production declined 5.6% YOY, reaching a four year low level, while combined production of dry whey, WPC and WPI declined 4.5%, finishing at a three year low. ’19-’20 YTD dry whey production has rebounded by 5.6% on a YOY basis throughout the first third of the production season while combined production of dry whey, WPC and WPI has increased 1.3%.
NFDM/SMP – Combined Production Higher YOY for the Seventh Consecutive Month, Finishes up 5.8%
U.S. nonfat dry milk (NFDM) production remained higher on a YOY basis for the ninth consecutive month during Jan ’20, finishing up 0.3% and reaching a 55 year high seasonal level. A 23.3% YOY increase in Atlantic U.S. NFDM production more than offset lower Western U.S. (-1.6%) and Central U.S. (-11.3%) production experienced throughout the month.
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 fifth time in the past six months during Jan ’20, increasing by 29.5%. Jan ’20 combined production of NFDM and SMP increased 5.8% on a YOY basis, finishing higher for seventh consecutive month.
’18-’19 annual combined production of NFDM and SMP declined 2.0% from the record high level experienced throughout the previous production season. Production of NFDM and SMP declined by 1.2% and 4.4%, respectively, throughout the 12 month period. ’19-’20 YTD combined production of NFDM and SMP has rebounded by 7.4% on a YOY basis throughout the first third of the production season.
Overall, skim milk powder production increased most significantly YOY on a percentage basis during Jan ’20, while cheddar cheese production declined most significantly on a percentage basis throughout the month.