U.S. Dairy Product Production Update – Nov ’20
Executive Summary
U.S. dairy product production figures provided by the USDA were recently updated with values spanning through Sep ’20. Highlights from the updated report include:
Cheese – Production Reaches a Record High Seasonal Level, Finishes up 1.1% YOY
U.S. cheese production finished 1.1% higher on a YOY basis throughout Sep ’20, reaching a record high seasonal level. The YOY increase in cheese production was the third experienced throughout the past four months. YOY increases in production experienced throughout the Atlantic U.S. (+3.4%) and Central U.S. (+2.3%) more than offset a reduction in Western U.S. (-0.9%) production.
Cheddar cheese production increased 7.7% on a YOY basis throughout the month, more than offsetting a 1.3% YOY reduction in other-than-cheddar cheese production. The YOY increase in cheddar cheese production was the seventh experienced throughout the past eight months.
’18-’19 annual cheese production increased 1.7% YOY, reaching the highest annual level on record, as a 2.6% YOY increase in other-than-cheddar cheese more than offset a 0.5% YOY decline in cheddar cheese production. Cheddar cheese production remained at the second highest annual level on record, however. ’19-’20 annual cheese production remained flat on a YOY basis as a 1.1% YOY increase in cheddar cheese production offset a 0.4% YOY decline in other-than-cheddar cheese production.
Dry Whey – Production Declines YOY for the Second Consecutive Month, Finishes Down 17.3%
U.S. dry whey production declined 17.3% on a YOY basis during Sep ’20, finishing lower on a YOY basis for the second consecutive month. The YOY decline in dry whey production was the largest experienced throughout the past two years on a percentage basis. Production declines were widespread regionally and led by the Western U.S. (-29.1%), followed by the Central U.S. (-19.2%) and the Atlantic U.S. (-0.7%).
Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production finished lower on a YOY basis for the 15th time in the past 16 months during Sep ’20, declining by 1.0%. Combined production of dry whey, WPC and WPI finished 11.5% lower on a YOY basis throughout the month.
’18-’19 annual dry whey production declined 5.2% YOY, reaching a four year low level, while combined production of dry whey, WPC and WPI declined 4.0%, finishing at a three year low. ’19-’20 annual dry whey production rebounded by 1.1% on a YOY basis however combined production of dry whey, WPC and WPI declined by 0.8%.
NFDM/SMP – Combined Production Reaches a Record High Seasonal Level, Finishes up 11.4% YOY
U.S. nonfat dry milk (NFDM) production increased on a YOY basis for the second consecutive month during Sep ’20, finishing up 5.5% and reaching a three year high seasonal level. Production gains were widespread regionally and led by the Central U.S. (+13.2%), followed by the Atlantic U.S. (+8.8%) and the Atlantic U.S. (+1.9%).
Production of skim milk powder (SMP), which is more suited to the requirements of most global markets, finished higher on a YOY basis for the fifth consecutive month during Sep ’20, increasing by 23.3% and reaching a record high level. Combined production of NFDM and SMP finished 11.4% above previous year levels, increasing on a YOY basis for the second consecutive month and reaching a record high seasonal level.
’18-’19 annual combined production of NFDM and SMP increased 0.1% YOY, reaching the highest annual level on record. SMP production increased 2.6% on a YOY basis throughout the period, more than offsetting a 0.7% YOY decline in NFDM production. ’19-’20 annual combined production of NFDM and SMP increased by an additional 5.1% on a YOY basis on a 3.1% YOY increase in NFDM production and an 11.7% YOY increase in SMP production.
Overall, skim milk powder increased most significantly YOY on a percentage basis during Sep ’20, followed by total powder production, while dry whey production declined most significantly on a percentage basis throughout the month.
- Sep ’20 U.S. butter production finished 5.4% higher on a YOY basis, remaining at a record high seasonal level for the third consecutive month.
- Sep ’20 U.S. cheese production finished 1.1% higher on a YOY basis, reaching a record high seasonal level, however dry whey production finished lower on a YOY basis for the second consecutive month, declining by 17.3%.
- Combined production of U.S. nonfat dry milk and skim milk powder increased 11.4% on a YOY basis during Sep ’20, reaching a record high seasonal level. Nonfat dry milk production increased 5.5% YOY throughout the month, reaching a three year seasonal high level, while skim milk powder production increased to a record high level.
Cheese – Production Reaches a Record High Seasonal Level, Finishes up 1.1% YOY
U.S. cheese production finished 1.1% higher on a YOY basis throughout Sep ’20, reaching a record high seasonal level. The YOY increase in cheese production was the third experienced throughout the past four months. YOY increases in production experienced throughout the Atlantic U.S. (+3.4%) and Central U.S. (+2.3%) more than offset a reduction in Western U.S. (-0.9%) production.
Cheddar cheese production increased 7.7% on a YOY basis throughout the month, more than offsetting a 1.3% YOY reduction in other-than-cheddar cheese production. The YOY increase in cheddar cheese production was the seventh experienced throughout the past eight months.
’18-’19 annual cheese production increased 1.7% YOY, reaching the highest annual level on record, as a 2.6% YOY increase in other-than-cheddar cheese more than offset a 0.5% YOY decline in cheddar cheese production. Cheddar cheese production remained at the second highest annual level on record, however. ’19-’20 annual cheese production remained flat on a YOY basis as a 1.1% YOY increase in cheddar cheese production offset a 0.4% YOY decline in other-than-cheddar cheese production.
Dry Whey – Production Declines YOY for the Second Consecutive Month, Finishes Down 17.3%
U.S. dry whey production declined 17.3% on a YOY basis during Sep ’20, finishing lower on a YOY basis for the second consecutive month. The YOY decline in dry whey production was the largest experienced throughout the past two years on a percentage basis. Production declines were widespread regionally and led by the Western U.S. (-29.1%), followed by the Central U.S. (-19.2%) and the Atlantic U.S. (-0.7%).
Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production finished lower on a YOY basis for the 15th time in the past 16 months during Sep ’20, declining by 1.0%. Combined production of dry whey, WPC and WPI finished 11.5% lower on a YOY basis throughout the month.
’18-’19 annual dry whey production declined 5.2% YOY, reaching a four year low level, while combined production of dry whey, WPC and WPI declined 4.0%, finishing at a three year low. ’19-’20 annual dry whey production rebounded by 1.1% on a YOY basis however combined production of dry whey, WPC and WPI declined by 0.8%.
NFDM/SMP – Combined Production Reaches a Record High Seasonal Level, Finishes up 11.4% YOY
U.S. nonfat dry milk (NFDM) production increased on a YOY basis for the second consecutive month during Sep ’20, finishing up 5.5% and reaching a three year high seasonal level. Production gains were widespread regionally and led by the Central U.S. (+13.2%), followed by the Atlantic U.S. (+8.8%) and the Atlantic U.S. (+1.9%).
Production of skim milk powder (SMP), which is more suited to the requirements of most global markets, finished higher on a YOY basis for the fifth consecutive month during Sep ’20, increasing by 23.3% and reaching a record high level. Combined production of NFDM and SMP finished 11.4% above previous year levels, increasing on a YOY basis for the second consecutive month and reaching a record high seasonal level.
’18-’19 annual combined production of NFDM and SMP increased 0.1% YOY, reaching the highest annual level on record. SMP production increased 2.6% on a YOY basis throughout the period, more than offsetting a 0.7% YOY decline in NFDM production. ’19-’20 annual combined production of NFDM and SMP increased by an additional 5.1% on a YOY basis on a 3.1% YOY increase in NFDM production and an 11.7% YOY increase in SMP production.
Overall, skim milk powder increased most significantly YOY on a percentage basis during Sep ’20, followed by total powder production, while dry whey production declined most significantly on a percentage basis throughout the month.