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U.S. Dairy Product Production Update – Nov ’20

  • November 6, 2020
  • by Belinda Przybylski
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:
  • 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.
Additional Report Details Butter – Production Remains at a Record High Seasonal Level, Finishes up 5.4% YOY According to the USDA, 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. The YOY increase in butter production was the 14th experienced throughout the past 16 months. YOY increases in production experienced throughout the Central U.S. (+7.9%) and Western U.S. (+5.0%) more than offset a reduction in Atlantic U.S. (-2.7%) production. ’18-’19 annual butter production increased 1.3% YOY, reaching the highest annual level on record, while ’19-’20 annual butter production increased an additional 5.7%. 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.  
U.S. Dairy Exports Update – Nov ’20
U.S. Dairy Dry Product Stocks Update – Nov ’20
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