U.S. Dairy Product Production Update – May ’18
Executive Summary
U.S. dairy product production figures provided by USDA were recently updated with values spanning through Mar ’18. Highlights from the updated report include:
Cheese – Production Reaches a Record Seasonal High, Finishes up 2.7% YOY
Mar ’18 total U.S. cheese production finished higher on a YOY basis for the 60th consecutive month, finishing up 2.7% to a record seasonal high for the month of March. Cheddar cheese production declined 2.7% on a YOY basis throughout the month however the decline was more than offset by a 5.0% YOY increase in other-than-cheddar cheese production experienced throughout the month. ’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 3.5% throughout the first half of the production season.
Dry Whey – Production Increases YOY for the 13th Time in the Past 14 Months, Finishes up 1.5%
Mar ’18 U.S. dry whey production increased 1.5% YOY, finishing higher for the 13th time in the past 14 months and reaching a six year seasonal high for the month of March. Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production also remained higher on a YOY basis throughout Mar ’18, increasing by 3.0%. 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 13 months. Combined dry whey, WPC and WPI production remained strong throughout Mar ’18, finishing up 2.1%. ’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 6.7% YOY throughout the first half of the production season while combined production of dry whey, WPC and WPI is up 5.6%.
NFDM/SMP – Higher NFDM Production Offsets Lower SMP Production, Total Production up 3.6% YOY
Mar ’18 U.S. nonfat dry milk (NFDM) production increased 12.0% YOY, finishing higher for the eighth consecutive month and reaching a three year seasonal high for the month of March. 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 eighth consecutive month, however, as production declined 22.2%. The increase in NFDM production more than offset the decline in SMP production, resulting in combined production finishing 3.6% higher YOY. The YOY increase in combined NFDM and SMP production was the fourth experienced throughout the past five 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 has increased an additional 1.9% throughout the first half of the production season.
Overall, nonfat dry milk production increased most significantly YOY on a percentage basis during Mar ’18 while skim milk powder production experienced the largest YOY decline in production throughout the month.
- Mar ’18 U.S. butter production increased 4.8% YOY to a record seasonal high for the month of March. Butter production has finished higher on a YOY basis over six consecutive months through Mar ’18.
- U.S. cheese production finished higher on a YOY basis for the 60th consecutive month during Mar ’18, increasing by 2.7% to a record seasonal high for the month of March. U.S. dry whey production increased on a YOY basis for the 13th time in the past 14 months, finishing up 1.5%.
- Combined production of U.S. nonfat dry milk and skim milk powder increased 3.6% on a YOY basis, finishing higher for the fourth time in the past five months. U.S. nonfat dry milk production increased 12.0% YOY throughout the month, more than offsetting a 22.2% decline in skim milk powder production.
Cheese – Production Reaches a Record Seasonal High, Finishes up 2.7% YOY
Mar ’18 total U.S. cheese production finished higher on a YOY basis for the 60th consecutive month, finishing up 2.7% to a record seasonal high for the month of March. Cheddar cheese production declined 2.7% on a YOY basis throughout the month however the decline was more than offset by a 5.0% YOY increase in other-than-cheddar cheese production experienced throughout the month. ’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 3.5% throughout the first half of the production season.
Dry Whey – Production Increases YOY for the 13th Time in the Past 14 Months, Finishes up 1.5%
Mar ’18 U.S. dry whey production increased 1.5% YOY, finishing higher for the 13th time in the past 14 months and reaching a six year seasonal high for the month of March. Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production also remained higher on a YOY basis throughout Mar ’18, increasing by 3.0%. 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 13 months. Combined dry whey, WPC and WPI production remained strong throughout Mar ’18, finishing up 2.1%. ’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 6.7% YOY throughout the first half of the production season while combined production of dry whey, WPC and WPI is up 5.6%.
NFDM/SMP – Higher NFDM Production Offsets Lower SMP Production, Total Production up 3.6% YOY
Mar ’18 U.S. nonfat dry milk (NFDM) production increased 12.0% YOY, finishing higher for the eighth consecutive month and reaching a three year seasonal high for the month of March. 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 eighth consecutive month, however, as production declined 22.2%. The increase in NFDM production more than offset the decline in SMP production, resulting in combined production finishing 3.6% higher YOY. The YOY increase in combined NFDM and SMP production was the fourth experienced throughout the past five 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 has increased an additional 1.9% throughout the first half of the production season.
Overall, nonfat dry milk production increased most significantly YOY on a percentage basis during Mar ’18 while skim milk powder production experienced the largest YOY decline in production throughout the month.