Executive Summary U.S. dairy product production figures provided by the USDA were recently updated with values spanning through May ’20. Highlights from the updated report include:

• May ’20 U.S. butter production declined from the record high level experienced throughout the previous month but remained higher on a YOY basis for the 11^th time in the past 12 months, finishing up 4.9% and reaching a 77 year high seasonal level.
• U.S. cheese production declined 0.7% on a YOY basis during May ’20, finishing lower for the fourth time in the past five months, however dry whey production increased on a YOY basis for the ninth time in the past ten months, finishing up 8.9%.
• Combined production of U.S. nonfat dry milk and skim milk powder increased 2.2% on a YOY basis during May ’20, finishing higher for the 11^th consecutive month. Skim milk powder production increased 76.9% YOY throughout the month, more than offsetting a 9.2% YOY decline in nonfat dry milk production.

Additional Report Details Butter – Production Remains Higher YOY for the 11^th Time in the Past 12 Months, up 4.9% According to the USDA, May ’20 U.S. butter production declined sharply from the record high level experienced throughout the previous month but remained 4.9% higher on a YOY basis, reaching a 77 year high seasonal level. The YOY increase in butter production was the 11^th experienced throughout the past 12 months. YOY increases in production experienced throughout the Western U.S. (+6.1%) and Central U.S. (+5.3%) more than offset lower production experienced throughout the Atlantic U.S. (-3.0%). ’18-’19 annual butter production increased 1.3% YOY, reaching the highest annual level on record. ’19-’20 YTD butter production has increased an additional 6.8% on a YOY basis throughout the first two thirds of the production season. Cheese – Production Remains Lower YOY for the Fourth Time in the Past Five Months, Down 0.7% U.S. cheese production finished lower on a YOY basis for the fourth time in the past five months throughout May ’20, declining by 0.7%. Cheese production declined to a ten month low level, overall. Lower YOY production experienced throughout the Western U.S. (-2.1%) more than offset higher production experienced throughout the Atlantic U.S. (+0.1%) and Central U.S. (+0.4%). Other-than-cheddar cheese production declined 0.8% on a YOY basis throughout the month while cheddar cheese production declined 0.5%. The YOY decline in cheddar cheese production was the first experienced throughout the past four 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 YTD cheese production has declined by 0.6% on a YOY basis throughout the first two thirds of the production season. Dry Whey – Production Increases YOY for the Ninth Time in the Past Ten Months, Finishes up 8.9% U.S. dry whey production increased 8.9% on a YOY basis during May ’20, finishing higher on a YOY basis for the ninth time in the past ten months. YOY increases in production experienced throughout the Central U.S. (+24.2%) and Atlantic U.S. (+0.2%) more than offset lower production experienced throughout the Western U.S. (-7.0%). Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production remained lower on a YOY basis for the 12^th consecutive month during May ’20, however, finishing down 4.5%. The increase in dry whey production more than offset the decline in combined WPC and WPI production throughout May ’20, as combined production finished 3.6% higher YOY. ’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 YTD dry whey production has rebounded by 4.5% on a YOY basis throughout the first two thirds of the production season while combined production of dry whey, WPC and WPI has increased by 0.5%. NFDM/SMP – Combined Production Higher YOY for the 11^th Consecutive Month, Finishes up 2.2% U.S. nonfat dry milk (NFDM) production declined on a YOY basis for just the second time in the past 13 months during May ’20, finishing down 9.2%. YOY declines in production were widespread regionally and led by the Atlantic U.S. (-15.4%), followed by the Western U.S. (-9.5%) and Central U.S. (-1.3%). 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 first time in the past three months during May ’20, however, increasing by 76.9%. The YOY increase in SMP production was the largest experienced throughout the past 19 months on a percentage basis. May ’20 combined production of NFDM and SMP remained 2.2% higher on a YOY basis, finishing higher for 11^th consecutive month. ’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 YTD combined production of NFDM and SMP has increased by an additional 5.9% on a YOY basis throughout the first two thirds of the production season. Overall, skim milk powder production increased most significantly YOY on a percentage basis during May ’20, while nonfat dry milk production declined most significantly on a percentage basis throughout the month.