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

  • December 4, 2020
  • by Belinda Przybylski
Executive Summary U.S. dairy product production figures provided by the USDA were recently updated with values spanning through Oct ’20. Highlights from the updated report include:
  • Oct ’20 U.S. butter production finished 1.2% higher on a YOY basis, remaining at a record high seasonal level for the fourth consecutive month.
  • Oct ’20 U.S. cheese production finished 0.6% lower on a YOY basis, despite continued increases in cheddar cheese production, while dry whey production finished lower on a YOY basis for the third consecutive month, declining by 11.8%.
  • Combined production of U.S. nonfat dry milk and skim milk powder increased 8.6% on a YOY basis during Oct ’20, remaining at a record high seasonal level. Nonfat dry milk production increased 4.3% YOY throughout the month, reaching a three year seasonal high level, while skim milk powder production increased to a seven year high seasonal level.
Additional Report Details Butter – Production Remains at a Record High Seasonal Level, Finishes up 1.2% YOY According to the USDA, Oct ’20 U.S. butter production finished 1.2% higher on a YOY basis, remaining at a record high seasonal level for the fourth consecutive month. The YOY increase in butter production was the 15th experienced throughout the past 17 months. Higher YOY butter production experienced throughout the Western U.S. (+6.2%) more than offset reductions in Atlantic U.S. (-0.9%) and Central U.S. (-4.8%) production throughout the month. ’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 5.6%. Cheese – Production Declines to a Three Year Seasonal Low Level, Finishes Down 0.6% YOY U.S. cheese production finished 0.6% lower on a YOY basis throughout Oct ’20, reaching a three year seasonal low level. The YOY decline in cheese production was the tenth experienced throughout the past 13 months. YOY declines in production experienced throughout the Atlantic U.S. (-2.2%) and Western U.S. (-3.0%) more than offset an increase in Central U.S. (+2.1%) production. Other-than-cheddar cheese production declined 2.9% on a YOY basis throughout the month, more than offsetting a 5.6% YOY increase in cheddar cheese production. The YOY increase in cheddar cheese production was the eighth experienced throughout the past nine 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 to a Three Year Seasonal Low Level, Finishes Down 11.8% YOY U.S. dry whey production declined 11.8% on a YOY basis throughout Oct ’20, reaching a three year low seasonal level. The YOY decline in dry whey production was the third experienced in a row. YOY declines in production experienced throughout the Central U.S. (-5.3%) and Western U.S. (-32.7%) more than offset an increase in Atlantic U.S. (+8.0%) production. Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production finished higher on a YOY basis for just the second time in the past 17 months during Oct ’20, increasing by 2.5%. Combined production of dry whey, WPC and WPI remained 6.7% lower on a YOY basis throughout the month, however. ’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 Remains at a Record High Seasonal Level, Finishes up 8.6% YOY U.S. nonfat dry milk (NFDM) production increased 4.3% on a YOY basis throughout Oct ’20, reaching a three year high seasonal level. The YOY increase in NFDM production was the third experienced in a row. Higher YOY NFDM production experienced throughout the Central U.S. (+42.2%) more than offset reductions in Atlantic U.S. (-1.8%) and Western U.S. (-4.6%) production throughout the month. 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 sixth consecutive month during Oct ’20, increasing by 20.7% and reaching a seven year high seasonal level. Combined production of NFDM and SMP finished 8.6% above previous year levels, increasing on a YOY basis for the third 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 5.2% on a YOY basis on a 3.2% 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 Oct ’20, followed by total powder production, while dry whey production declined most significantly on a percentage basis throughout the month.  
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