Butter – Production Increases 1.9% YOY, Reaches New Record High for the Month of May According to USDA, May ’15 U.S. butter production of 169.5 million pounds declined slightly MOM on a daily average basis but increased 1.9% YOY, reaching a new record high for the month of May. The YOY increase in butter production was the first experienced in the last five months. The MOM decline of 0.1 million lbs, or 0.1%, was significantly less than the ten year average April – May seasonal decline of 7.8 million lbs, or 5.2%. Butter produced in the Western region of the United States increased most significantly YOY, finishing up 4.2%. ’14-’15 YTD butter production remains down 0.8% through the first two thirds of the production season. Cheese – Production Increases 1.8% YOY, Reaches New Record High for the Month of May May ’15 total cheese production of 988.6 million pounds increased YOY for the 26th consecutive month, finishing 1.8% higher than last year. May ’15 cheese production reached a new record high for the month of May and was the fifth largest production month ever experienced on a daily average basis. Production did, however, decline by 13.1 million lbs, or 1.4%, MOM on a daily average basis, which was slightly larger than the ten year average April – May seasonal decline of 9.3 million lbs, or 1.0%. Cheddar cheese production continued to lag total cheese production, with monthly cheddar production of 290.1 million pounds finishing up just 0.4% YOY. ’14-’15 YTD cheese production is up 2.5% YOY through the first two thirds of the production season with cheddar cheese production up 1.9% over the same period. The 2.5% increase in annual cheese production would be consistent with the ten year average annual growth rate of 2.6%. Dry Whey – Production Declines YOY for First Time in Five Months Despite growth in cheese output, May ’15 U.S. dry whey production declined YOY for the first time in five months. Dry whey production of 80.0 million pounds finished 3.0% below last year but increased 1.2% MOM on a daily average basis. The MOM increase of 0.9 million lbs, or 1.2%, was larger than the ten year average April – May seasonal increase of 0.1 million lbs, or 0.3%. Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production remained lower on a YOY basis, declining by 1.2% YOY. Combined WPC and WPI production increased by 18.3% YOY throughout the ’13-’14 production season but has dropped below last year’s levels throughout the first two thirds of the ’14-’15 production season, down 2.2% YTD. ’14-’15 YTD dry whey production remains up 4.3% YOY, with total combined dry whey, WPC and WPI production up 1.5% YOY through May. NFDM/SMP – Combined Production Declines YOY for First Time in 15 Months May ’15 U.S. NFDM production of 178.2 million pounds increased YOY for the 16th consecutive month, finishing up 9.9%. NFDM production did, however, decline MOM on a daily average basis, falling by 5.2% from the three year high experienced in Apr ’15. SMP production remained weak, as May ’15 production of 36.7 million lbs declined YOY for the 12th consecutive month, falling 38.3%. May ’15 combined production of NFDM and SMP declined YOY for the first time in 15 months, falling 3.0%. ’14-’15 YTD combined U.S. NFDM and SMP production remains up 6.9% through the first two thirds of the production season. See the table below for a summary of key U.S. dairy product production in May ’15.