U.S. Dairy Product Production Update – Jul ’16
Executive Summary
U.S. dairy product production figures provided by USDA were recently updated with values spanning through May ’16. Highlights from the updated report include:
• May ’16 U.S. butter production increased to a new record high level for the month of May, finishing up 0.3% YOY.
• U.S. cheese production remained strong during May ’16, increasing on a YOY basis for the 38th consecutive month and finishing at a record high volume for the month of May.
• Combined production of U.S. nonfat dry milk and skim milk powder remained lower on a YOY basis for the 13th consecutive month during May ’16, finishing down 0.1%.
Additional Report Details
Butter – Production Reaches New Record High for the Month of May, Finishes up 0.3% YOY
According to USDA, May ’16 U.S. butter production of 169.9 million pounds finished 0.3% higher on a YOY basis, reaching a new record high production level for the month of May. YOY increases in butter production were led by the Central U.S., which increased production by 10.6% YOY, while production increased by 6.7% in the Atlantic U.S. Increases in production within the Central and Atlantic U.S. more than offset a 8.3% YOY decline in production throughout the Western U.S. California butter production was particularly weak, declining by 9.3% YOY throughout the month. ’14-’15 annual butter production finished down 0.7% YOY to a four year low however ’15-’16 YTD butter production is up 3.3% YOY throughout the first two thirds of the production season.
Cheese – Production Reaches New Record High for the Month of May, Finishes up 1.2%
May ’16 total U.S. cheese production of 998.1 million pounds increased YOY for the 38th consecutive month, finishing 1.2% above the previous year and reaching a new record high production level for the month of May. Cheddar cheese production of 290.5 million pounds declined 2.0% YOY however the decline in cheddar production was more than offset by a 2.6% increase in other-than-cheddar cheese production. ’14-’15 annual total cheese production finished up 3.0% YOY while cheddar cheese production finished up 3.1%. ’15-’16 YTD cheese production is up an additional 2.1% YOY throughout the first two thirds of the production season despite cheddar cheese production increasing by just 0.7% throughout the period.
Dry Whey – Production Increases on a YOY Basis for the Second Consecutive Month
May ’16 U.S. dry whey production of 81.8 million pounds increased on a YOY basis for the second consecutive month, finishing 3.1% above the previous year. Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production remained lower on a YOY basis, however, declining by 10.1% throughout the month. The declines in WPC and WPI production more than offset the increase in dry whey production, as May ’16 combined dry whey, WPC and WPI production finished 2.2% below the previous year. ’15-’16 YTD dry whey production is up 7.2% YOY throughout the first two thirds of the production season, with combined production of dry whey, WPC and WPI up 1.1% over the same period.
NFDM/SMP – Combined Production Declines YOY for the 13th Consecutive Month
May ’16 U.S. nonfat dry milk (NFDM) production of 165.1 million pounds declined YOY for the eighth consecutive month, finishing 8.3% below the previous year. Skim milk powder (SMP), which is more suited to the requirements of most global markets, increased YOY for the seventh consecutive month, as production of 50.3 million pounds finished 41.4% above the previous year. Overall, May ’16 combined production of NFDM and SMP declined YOY for the 13th consecutive month, falling 0.1% YOY. Combined production of NFDM and SMP is down 5.2% YOY throughout the first two thirds of the ’15-’16 production season.
Overall, SMP production increased most significantly YOY during May ’16 on a percentage basis, followed by dry whey and cheese. NFDM production declined the most on a percentage basis throughout the month, resulting in a slight YOY decline in total powder production.
Cheese – Production Reaches New Record High for the Month of May, Finishes up 1.2%
May ’16 total U.S. cheese production of 998.1 million pounds increased YOY for the 38th consecutive month, finishing 1.2% above the previous year and reaching a new record high production level for the month of May. Cheddar cheese production of 290.5 million pounds declined 2.0% YOY however the decline in cheddar production was more than offset by a 2.6% increase in other-than-cheddar cheese production. ’14-’15 annual total cheese production finished up 3.0% YOY while cheddar cheese production finished up 3.1%. ’15-’16 YTD cheese production is up an additional 2.1% YOY throughout the first two thirds of the production season despite cheddar cheese production increasing by just 0.7% throughout the period.
Dry Whey – Production Increases on a YOY Basis for the Second Consecutive Month
May ’16 U.S. dry whey production of 81.8 million pounds increased on a YOY basis for the second consecutive month, finishing 3.1% above the previous year. Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production remained lower on a YOY basis, however, declining by 10.1% throughout the month. The declines in WPC and WPI production more than offset the increase in dry whey production, as May ’16 combined dry whey, WPC and WPI production finished 2.2% below the previous year. ’15-’16 YTD dry whey production is up 7.2% YOY throughout the first two thirds of the production season, with combined production of dry whey, WPC and WPI up 1.1% over the same period.
NFDM/SMP – Combined Production Declines YOY for the 13th Consecutive Month
May ’16 U.S. nonfat dry milk (NFDM) production of 165.1 million pounds declined YOY for the eighth consecutive month, finishing 8.3% below the previous year. Skim milk powder (SMP), which is more suited to the requirements of most global markets, increased YOY for the seventh consecutive month, as production of 50.3 million pounds finished 41.4% above the previous year. Overall, May ’16 combined production of NFDM and SMP declined YOY for the 13th consecutive month, falling 0.1% YOY. Combined production of NFDM and SMP is down 5.2% YOY throughout the first two thirds of the ’15-’16 production season.
Overall, SMP production increased most significantly YOY during May ’16 on a percentage basis, followed by dry whey and cheese. NFDM production declined the most on a percentage basis throughout the month, resulting in a slight YOY decline in total powder production.