Butter – Production Finishes 1.7% Below the Previous Year’s Record Oct Production Levels According to USDA, Oct ’15 U.S. butter production of 147.5 million pounds increased 5.9% MOM seasonally on a daily average basis but finished lower on a YOY basis, declining 1.7% from the previous year’s record October production levels. The seasonal MOM increase in production of 5.9%, or 7.9 million pounds, was slightly below the ten year average September – October increase in butter production of 7.2%, or 8.2 million pounds. Butter production declined 5.1% YOY in the Central U.S. and 3.0% YOY in the Atlantic U.S. but increased by 1.5% YOY in the Western U.S despite declines in California production. California butter production declined 9.0% YOY however other Western states increased production by 20.2% YOY throughout the month. ’14-’15 annual butter production finished down 0.7% YOY to a four year low. Cheese – Production Increases 2.4% YOY, Reaches New Record High for the Month of Oct Oct ’15 total cheese production of 990.9 million pounds increased YOY for the 31st consecutive month, finishing 1.5% higher than the previous year and reaching a new record high for the month of October. Cheddar cheese production of 274.5 million pounds finished up 0.6% YOY while other-than-Cheddar cheese production of 716.4 million pounds increased 1.8% YOY. ’14-’15 annual total cheese production finished up 2.6% YOY while cheddar cheese production finished up 2.7%. The 2.6% increase in annual total cheese production was consistent with the ten year average annual growth rate. Dry Whey – Production Finishes Higher YOY for the Ninth Time in the Past Ten Months Consistent with the continued growth in cheese production, Oct ’15 U.S. dry whey production increased YOY for the ninth time in the past ten months. Dry whey production of 75.8 million pounds finished 11.0% above the previous year, although production did decline 6.8% MOM on a daily average basis. Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production remained lower on a YOY basis, declining by 7.5% YOY. Combined WPC and WPI production increased by 18.3% YOY throughout the ’13-’14 production season but declined throughout the’14-’15 production season, finishing down 3.1% YOY. ’14-’15 annual dry whey production finished up 6.9% YOY, with total combined dry whey, WPC and WPI production finishing up 2.7% YOY. Oct ’15 combined dry whey, WPC and WPI production increased 2.9% YOY. NFDM/SMP – Combined Production Declines YOY for Sixth Consecutive Month Oct ’15 U.S. NFDM production of 118.7 million pounds declined YOY for only the second time in the past 21 months, finishing 4.1% above the previous year. SMP, which is more suited to the requirements of most global markets, decreased YOY for the 16th time in the past 17 months, with production of 40.3 million pounds declining by 7.2% YOY. Overall, Oct ’15 combined production of NFDM and SMP declined YOY for the sixth consecutive month, falling 10.8% YOY. The Oct ’15 YOY decline in combined production was the largest experienced in the past five and a half years. ’14-’15 annual combined U.S. NFDM and SMP production finished up 3.8%. See the table below for a summary of key U.S. dairy product production in Oct ’15.