U.S. Dairy Product Production Update – Jun ’18
Executive Summary
U.S. dairy product production figures provided by USDA were recently updated with values spanning through Apr ’18. Highlights from the updated report include:
Cheese – Production Reaches a Record Seasonal High, Finishes up 0.9% YOY
Apr ’18 total U.S. cheese production finished higher on a YOY basis for the 61st consecutive month, finishing up 0.9% to a record seasonal high for the month of April. Cheddar cheese production declined 3.5% on a YOY basis throughout the month however the decline was more than offset by a 2.9% YOY increase in other-than-cheddar cheese production experienced throughout the month. ’16-’17 annual cheese production increased 3.2% to a record annual high as cheddar cheese production finished 5.6% higher, while ’17-’18 YTD production figures are up an additional 3.2% throughout the first seven months of the production season.
Dry Whey – Production Increases YOY for the 14th Time in the Past 15 Months, Finishes up 0.7%
Apr ’18 U.S. dry whey production increased 0.7% YOY, finishing higher for the 14th time in the past 15 months and reaching a seven year seasonal high for the month of April. Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production declined on a YOY basis throughout Apr ’18, however, finishing down 1.5%. The YOY decline in combined WPC and WPI production was the first experienced throughout the past 14 months. Combined dry whey, WPC and WPI production declined 0.1% YOY throughout Apr ’18 as lower combined WPC and WPI production more than offset higher dry whey production. ’16-’17 annual dry whey production increased 5.6% YOY while combined production of dry whey, WPC and WPI finished up 4.6%. ’17-’18 dry whey production is up an additional 6.2% YOY throughout the first seven months of the production season while combined production of dry whey, WPC and WPI is up 5.2%.
NFDM/SMP – NFDM & SMP Production Finish Lower YOY, Total Production Down 3.3%
Apr ’18 U.S. nonfat dry milk (NFDM) production declined 3.8% YOY, finishing lower for the first time in the past nine months and reaching a four year seasonal low for the month of April. Production of skim milk powder (SMP), which is more suited to the requirements of most global markets, also finished lower on a YOY basis throughout Apr ’18, declining by 1.8%. SMP production has declined over nine consecutive months through Apr ’18. Combined production of NFDM and SMP declined 3.3% throughout the month, finishing lower for just the second time in the past six months. ’16-’17 annual combined production of NFDM and SMP increased 4.2% 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 1.0% throughout the first seven months of the production season, despite the most recent decline.
Overall, butter production increased most significantly YOY on a percentage basis during Apr ’18, followed by other-than-cheddar cheese, while NFDM production experienced the largest YOY decline in production throughout the month, followed by cheddar cheese.
- Apr ’18 U.S. butter production increased 8.3% YOY to a record seasonal high for the month of April. Butter production has finished higher on a YOY basis over seven consecutive months through Apr ’18.
- U.S. cheese production finished higher on a YOY basis for the 61st consecutive month during Apr ’18, increasing by 0.9% to a record seasonal high for the month of April. U.S. dry whey production increased on a YOY basis for the 14th time in the past 15 months, finishing up 0.7%.
- Combined production of U.S. nonfat dry milk and skim milk powder declined 3.3% on a YOY basis, finishing lower for just the second time in the past six months. U.S. nonfat dry milk production declined 3.8% YOY throughout the month while skim milk powder production finished 1.8% lower.
Cheese – Production Reaches a Record Seasonal High, Finishes up 0.9% YOY
Apr ’18 total U.S. cheese production finished higher on a YOY basis for the 61st consecutive month, finishing up 0.9% to a record seasonal high for the month of April. Cheddar cheese production declined 3.5% on a YOY basis throughout the month however the decline was more than offset by a 2.9% YOY increase in other-than-cheddar cheese production experienced throughout the month. ’16-’17 annual cheese production increased 3.2% to a record annual high as cheddar cheese production finished 5.6% higher, while ’17-’18 YTD production figures are up an additional 3.2% throughout the first seven months of the production season.
Dry Whey – Production Increases YOY for the 14th Time in the Past 15 Months, Finishes up 0.7%
Apr ’18 U.S. dry whey production increased 0.7% YOY, finishing higher for the 14th time in the past 15 months and reaching a seven year seasonal high for the month of April. Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production declined on a YOY basis throughout Apr ’18, however, finishing down 1.5%. The YOY decline in combined WPC and WPI production was the first experienced throughout the past 14 months. Combined dry whey, WPC and WPI production declined 0.1% YOY throughout Apr ’18 as lower combined WPC and WPI production more than offset higher dry whey production. ’16-’17 annual dry whey production increased 5.6% YOY while combined production of dry whey, WPC and WPI finished up 4.6%. ’17-’18 dry whey production is up an additional 6.2% YOY throughout the first seven months of the production season while combined production of dry whey, WPC and WPI is up 5.2%.
NFDM/SMP – NFDM & SMP Production Finish Lower YOY, Total Production Down 3.3%
Apr ’18 U.S. nonfat dry milk (NFDM) production declined 3.8% YOY, finishing lower for the first time in the past nine months and reaching a four year seasonal low for the month of April. Production of skim milk powder (SMP), which is more suited to the requirements of most global markets, also finished lower on a YOY basis throughout Apr ’18, declining by 1.8%. SMP production has declined over nine consecutive months through Apr ’18. Combined production of NFDM and SMP declined 3.3% throughout the month, finishing lower for just the second time in the past six months. ’16-’17 annual combined production of NFDM and SMP increased 4.2% 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 1.0% throughout the first seven months of the production season, despite the most recent decline.
Overall, butter production increased most significantly YOY on a percentage basis during Apr ’18, followed by other-than-cheddar cheese, while NFDM production experienced the largest YOY decline in production throughout the month, followed by cheddar cheese.