U.S. Dairy Product Production Update – Aug ’20
Executive Summary
U.S. dairy product production figures provided by the USDA were recently updated with values spanning through Jun ’20. Highlights from the updated report include:
Cheese – Production Reaches a Record High Seasonal Level, Finishes up 3.5% YOY
U.S. cheese production finished 3.5% higher on a YOY basis during Jun ’20, reaching a record high seasonal level. The YOY increase in cheese production was the first experienced throughout the past three months and the largest experienced throughout the past 20 months on a percentage basis. YOY increases in production were widespread and led by the Central U.S. (+4.6%), followed by the Western U.S. (+2.7%) and the Atlantic U.S. (+1.8%).
Other-than-cheddar cheese production increased 4.4% on a YOY basis throughout the month while cheddar cheese production finished 1.0% above the previous year levels. The YOY increase in cheddar cheese production was the fourth experienced throughout the past five 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 YTD cheese production has declined by 0.1% on a YOY basis throughout the first three quarters of the production season, despite the most recent increase.
Dry Whey – Production Increases YOY for the Tenth Time in 11 Months, Finishes up 2.9%
U.S. dry whey production increased 2.9% on a YOY basis during Jun ’20, finishing higher on a YOY basis for the tenth time in the past 11 months. Higher production experienced throughout the Central U.S. (+12.2%) more than offset lower production experienced throughout the Western U.S. (-3.5%) and Western U.S. (-6.5%).
Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production remained lower on a YOY basis for the 13th consecutive month during Jun ’20, however, finishing down 0.7%. The increase in dry whey production more than offset the decline in combined WPC and WPI production throughout Jun ’20, as combined production finished 1.5% higher YOY.
’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 YTD dry whey production has rebounded by 4.4% on a YOY basis throughout the first three quarters of the production season while combined production of dry whey, WPC and WPI has increased by 0.7%.
NFDM/SMP – Combined Production Declines YOY for the First Time in 12 Months, Finishes Down 1.0%
U.S. nonfat dry milk (NFDM) production declined on a YOY basis for the second consecutive month during Jun ’20, finishing down 7.1% and reaching a four year low seasonal level. YOY declines in production experienced throughout the Atlantic U.S. (-15.4%) and Western U.S. (-11.1%) more than offset higher production experienced throughout the Central U.S. (+12.2%).
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 second consecutive month during Jun ’20, increasing by 17.7% and reaching a record high seasonal level. The reduction in NFDM production more than offset the increase in SMP production throughout the month, as combined production of NFDM and SMP declined by 1.0%, reaching a three year seasonal low level. The YOY decline in combined production of NFDM and SMP was the first experienced throughout the past 12 months.
’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 YTD combined production of NFDM and SMP has increased by an additional 5.2% on a YOY basis throughout the first three quarters of the production season, despite the most recent decline.
Overall, skim milk powder production remained most significantly YOY on a percentage basis for the second consecutive month during Jun ’20, while nonfat dry milk production declined most significantly on a percentage basis throughout the month.
- Jun ’20 U.S. butter production continued to decline seasonally while finishing lower on a YOY basis for the first time in the past five months, down 3.1%.
- U.S. cheese production increased 3.5% YOY, reaching a record high seasonal level, while dry whey production increased on a YOY basis for the tenth time in the past 11 months, finishing up 2.9%.
- Combined production of U.S. nonfat dry milk and skim milk powder declined 1.0% on a YOY basis during Jun ’20, finishing lower for the first time in the past 12 months and reaching a three year low seasonal level. Nonfat dry milk production declined 7.1% YOY throughout the month, more than offsetting a 17.7% YOY increase in skim milk powder production.
Cheese – Production Reaches a Record High Seasonal Level, Finishes up 3.5% YOY
U.S. cheese production finished 3.5% higher on a YOY basis during Jun ’20, reaching a record high seasonal level. The YOY increase in cheese production was the first experienced throughout the past three months and the largest experienced throughout the past 20 months on a percentage basis. YOY increases in production were widespread and led by the Central U.S. (+4.6%), followed by the Western U.S. (+2.7%) and the Atlantic U.S. (+1.8%).
Other-than-cheddar cheese production increased 4.4% on a YOY basis throughout the month while cheddar cheese production finished 1.0% above the previous year levels. The YOY increase in cheddar cheese production was the fourth experienced throughout the past five 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 YTD cheese production has declined by 0.1% on a YOY basis throughout the first three quarters of the production season, despite the most recent increase.
Dry Whey – Production Increases YOY for the Tenth Time in 11 Months, Finishes up 2.9%
U.S. dry whey production increased 2.9% on a YOY basis during Jun ’20, finishing higher on a YOY basis for the tenth time in the past 11 months. Higher production experienced throughout the Central U.S. (+12.2%) more than offset lower production experienced throughout the Western U.S. (-3.5%) and Western U.S. (-6.5%).
Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production remained lower on a YOY basis for the 13th consecutive month during Jun ’20, however, finishing down 0.7%. The increase in dry whey production more than offset the decline in combined WPC and WPI production throughout Jun ’20, as combined production finished 1.5% higher YOY.
’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 YTD dry whey production has rebounded by 4.4% on a YOY basis throughout the first three quarters of the production season while combined production of dry whey, WPC and WPI has increased by 0.7%.
NFDM/SMP – Combined Production Declines YOY for the First Time in 12 Months, Finishes Down 1.0%
U.S. nonfat dry milk (NFDM) production declined on a YOY basis for the second consecutive month during Jun ’20, finishing down 7.1% and reaching a four year low seasonal level. YOY declines in production experienced throughout the Atlantic U.S. (-15.4%) and Western U.S. (-11.1%) more than offset higher production experienced throughout the Central U.S. (+12.2%).
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 second consecutive month during Jun ’20, increasing by 17.7% and reaching a record high seasonal level. The reduction in NFDM production more than offset the increase in SMP production throughout the month, as combined production of NFDM and SMP declined by 1.0%, reaching a three year seasonal low level. The YOY decline in combined production of NFDM and SMP was the first experienced throughout the past 12 months.
’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 YTD combined production of NFDM and SMP has increased by an additional 5.2% on a YOY basis throughout the first three quarters of the production season, despite the most recent decline.
Overall, skim milk powder production remained most significantly YOY on a percentage basis for the second consecutive month during Jun ’20, while nonfat dry milk production declined most significantly on a percentage basis throughout the month.