U.S. Dairy Product Production Update – Mar ’18
Executive Summary
U.S. dairy product production figures provided by USDA were recently updated with values spanning through Jan ’18. Highlights from the updated report include:
Cheese – Production Reaches a Record Seasonal High, Finishes up 3.4% YOY
Jan ’18 total U.S. cheese production finished higher on a YOY basis for the 58th consecutive month, finishing up 3.4% to a record seasonal high for the month of January. Cheddar cheese production increased 0.3% on a YOY basis throughout the month while other-than-cheddar cheese production finished 4.8% above the previous year production volumes. ’16-’17 annual cheese production increased 3.0% to a record annual high as cheddar cheese production finished 4.9% higher, while ’17-’18 YTD production figures are up an additional 3.0% throughout the first third of the production season.
Dry Whey – Production Increases YOY for the 11th Time in the Past 12 Months, Finishes up 8.5%
Jan ’18 U.S. dry whey production increased 8.5% YOY, finishing higher for the 11th time in the past 12 months. Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production also remained higher on a YOY basis throughout Jan ’18, increasing by 7.4%. Combined WPC and WPI production had declined on a YOY basis over 20 of the past 25 months through the end of 2016, prior to finishing higher throughout the past 11 months. Combined dry whey, WPC and WPI production remained strong throughout Jan ’18, finishing up 8.1%. ’16-’17 annual dry whey production increased 1.3% YOY while combined production of dry whey, WPC and WPI finished up 4.6%. ’17-’18 dry whey production is up an additional 5.5% YOY throughout the first third of the production season while combined production of dry whey, WPC and WPI is up 5.1%.
NFDM/SMP – Lower SMP Production Offsets Higher NFDM Production, Total Production Down 0.6%
Jan ’18 U.S. nonfat dry milk (NFDM) production increased 5.4% YOY, finishing higher for the ninth time in the past ten months. Production of skim milk powder (SMP), which is more suited to the requirements of most global markets, finished lower on a YOY basis for the sixth consecutive month, however, as production declined 17.2%. The decline in SMP production more than offset the increase in NFDM production, resulting in combined production finishing 0.6% lower YOY. The YOY decline in combined NFDM and SMP production was the first experienced throughout the past three months. ’16-’17 annual combined production of NFDM and SMP increased 4.1% to a record annual high as production of both products finished higher. ’17-’18 YTD combined production of NFDM and SMP remains up an additional 0.1% throughout the first third of the production season, despite the most recent YOY decline.
Overall, dry whey production increased most significantly YOY on a percentage basis during Jan ’18, followed by nonfat dry milk, while skim milk powder production experienced the largest YOY decline in production throughout the month.
- Jan ’18 U.S. butter production increased 4.3% YOY, finishing higher on a YOY basis for the sixth time in the past seven months.
- U.S. cheese production finished higher on a YOY basis for the 58th consecutive month during Jan ’18, increasing by 3.4% to a record seasonal high for the month of January. U.S. dry whey production increased on a YOY basis for the 11th time in the past 12 months, finishing up 8.5%.
- Combined production of U.S. nonfat dry milk and skim milk powder declined 0.6% on a YOY basis, finishing lower for the first time in the past three months. U.S. skim milk powder production declined 17.2% YOY throughout the month, more than offsetting a 5.4% increase in nonfat dry milk production. Skim milk powder has declined on a YOY basis over six consecutive months through Jan ’18.
Cheese – Production Reaches a Record Seasonal High, Finishes up 3.4% YOY
Jan ’18 total U.S. cheese production finished higher on a YOY basis for the 58th consecutive month, finishing up 3.4% to a record seasonal high for the month of January. Cheddar cheese production increased 0.3% on a YOY basis throughout the month while other-than-cheddar cheese production finished 4.8% above the previous year production volumes. ’16-’17 annual cheese production increased 3.0% to a record annual high as cheddar cheese production finished 4.9% higher, while ’17-’18 YTD production figures are up an additional 3.0% throughout the first third of the production season.
Dry Whey – Production Increases YOY for the 11th Time in the Past 12 Months, Finishes up 8.5%
Jan ’18 U.S. dry whey production increased 8.5% YOY, finishing higher for the 11th time in the past 12 months. Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production also remained higher on a YOY basis throughout Jan ’18, increasing by 7.4%. Combined WPC and WPI production had declined on a YOY basis over 20 of the past 25 months through the end of 2016, prior to finishing higher throughout the past 11 months. Combined dry whey, WPC and WPI production remained strong throughout Jan ’18, finishing up 8.1%. ’16-’17 annual dry whey production increased 1.3% YOY while combined production of dry whey, WPC and WPI finished up 4.6%. ’17-’18 dry whey production is up an additional 5.5% YOY throughout the first third of the production season while combined production of dry whey, WPC and WPI is up 5.1%.
NFDM/SMP – Lower SMP Production Offsets Higher NFDM Production, Total Production Down 0.6%
Jan ’18 U.S. nonfat dry milk (NFDM) production increased 5.4% YOY, finishing higher for the ninth time in the past ten months. Production of skim milk powder (SMP), which is more suited to the requirements of most global markets, finished lower on a YOY basis for the sixth consecutive month, however, as production declined 17.2%. The decline in SMP production more than offset the increase in NFDM production, resulting in combined production finishing 0.6% lower YOY. The YOY decline in combined NFDM and SMP production was the first experienced throughout the past three months. ’16-’17 annual combined production of NFDM and SMP increased 4.1% to a record annual high as production of both products finished higher. ’17-’18 YTD combined production of NFDM and SMP remains up an additional 0.1% throughout the first third of the production season, despite the most recent YOY decline.
Overall, dry whey production increased most significantly YOY on a percentage basis during Jan ’18, followed by nonfat dry milk, while skim milk powder production experienced the largest YOY decline in production throughout the month.