U.S. Dairy Product Production Update – Aug ’16
Executive Summary
U.S. dairy product production figures provided by USDA were recently updated with values spanning through Jun ’16. Highlights from the updated report include:
• Jun ’16 U.S. butter production increased to a new record high level for the month of June, finishing up 6.4% YOY.
• U.S. cheese production remained strong during Jun ’16, increasing on a YOY basis for the 39th consecutive month and finishing at a record high volume for the month of June.
• Combined production of U.S. nonfat dry milk and skim milk powder remained lower on a YOY basis for the 13th time in the past 14 months during Jun ’16, finishing down 0.6%.
Additional Report Details
Butter – Production Reaches New Record High for the Month of June, Finishes up 6.4% YOY
According to USDA, Jun ’16 U.S. butter production of 152.9 million pounds continues to declined seasonally but finished 6.4% higher on a YOY basis, reaching a new record high production level for the month of June. YOY increases in butter production were led by the Central U.S., which increased production by 12.9% YOY, while production increased by 4.1% in the Western U.S. Increases in production within the Central and Western U.S. more than offset a 5.3% YOY decline in production throughout the Atlantic U.S. ’14-’15 annual butter production finished down 0.7% YOY to a four year low however ’15-’16 YTD butter production is up 3.6% YOY throughout the first three quarters of the production season.
Cheese – Production Reaches New Record High for the Month of June, Finishes up 1.2%
Jun ’16 total U.S. cheese production of 987.4 million pounds increased YOY for the 39th consecutive month, finishing 1.1% above the previous year and reaching a new record high production level for the month of June. Cheddar cheese production of 277.8 million pounds declined 3.5% YOY however the decline in cheddar production was more than offset by a 3.0% increase in other-than-cheddar cheese production. ’14-’15 annual total cheese production finished up 3.0% YOY while cheddar cheese production finished up 3.1%. ’15-’16 YTD cheese production is up an additional 2.1% YOY throughout the first three quarters of the production season despite cheddar cheese production increasing by just 0.2% throughout the period.
Dry Whey – Production Declines on a YOY Basis for the First Time in Three Months
Jun ’16 U.S. dry whey production of 79.2 million pounds declined on a YOY basis for the first time in three months, finishing 7.7% below the previous year. The YOY decline in dry whey production was the largest experienced in the past 18 months on a percentage basis. Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production remained lower on a YOY basis, declining by 5.5% throughout the month. Combined WPC and WPI production has declined on a YOY basis for 19 consecutive months through June. Combined dry whey, WPC and WPI production finished 6.9% below the previous year during Jun ’16, finishing lower for the fifth consecutive month. ’15-’16 YTD dry whey production remains up 5.4% YOY throughout the first three quarters of the production season, with combined production of dry whey, WPC and WPI up 0.2% over the same period.
NFDM/SMP – Combined Production Remains Lower on a YOY Basis
Jun ’16 U.S. nonfat dry milk (NFDM) production of 143.6 million pounds declined YOY for the ninth consecutive month, finishing 13.2% below the previous year. Skim milk powder (SMP), which is more suited to the requirements of most global markets, increased YOY for the eighth consecutive month, as production of 55.3 million pounds finished 59.5% above the previous year. Overall, Jun ’16 combined production of NFDM and SMP declined YOY for the 13th time in the past 14 months, falling 0.6% YOY. Combined production of NFDM and SMP is down 4.6% YOY throughout the first three quarters of the ’15-’16 production season.
Overall, SMP production increased most significantly YOY during Jun ’16 on a percentage basis, followed by butter. NFDM production declined the most on a percentage basis throughout the month, resulting in a slight YOY decline in total powder production.
Cheese – Production Reaches New Record High for the Month of June, Finishes up 1.2%
Jun ’16 total U.S. cheese production of 987.4 million pounds increased YOY for the 39th consecutive month, finishing 1.1% above the previous year and reaching a new record high production level for the month of June. Cheddar cheese production of 277.8 million pounds declined 3.5% YOY however the decline in cheddar production was more than offset by a 3.0% increase in other-than-cheddar cheese production. ’14-’15 annual total cheese production finished up 3.0% YOY while cheddar cheese production finished up 3.1%. ’15-’16 YTD cheese production is up an additional 2.1% YOY throughout the first three quarters of the production season despite cheddar cheese production increasing by just 0.2% throughout the period.
Dry Whey – Production Declines on a YOY Basis for the First Time in Three Months
Jun ’16 U.S. dry whey production of 79.2 million pounds declined on a YOY basis for the first time in three months, finishing 7.7% below the previous year. The YOY decline in dry whey production was the largest experienced in the past 18 months on a percentage basis. Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production remained lower on a YOY basis, declining by 5.5% throughout the month. Combined WPC and WPI production has declined on a YOY basis for 19 consecutive months through June. Combined dry whey, WPC and WPI production finished 6.9% below the previous year during Jun ’16, finishing lower for the fifth consecutive month. ’15-’16 YTD dry whey production remains up 5.4% YOY throughout the first three quarters of the production season, with combined production of dry whey, WPC and WPI up 0.2% over the same period.
NFDM/SMP – Combined Production Remains Lower on a YOY Basis
Jun ’16 U.S. nonfat dry milk (NFDM) production of 143.6 million pounds declined YOY for the ninth consecutive month, finishing 13.2% below the previous year. Skim milk powder (SMP), which is more suited to the requirements of most global markets, increased YOY for the eighth consecutive month, as production of 55.3 million pounds finished 59.5% above the previous year. Overall, Jun ’16 combined production of NFDM and SMP declined YOY for the 13th time in the past 14 months, falling 0.6% YOY. Combined production of NFDM and SMP is down 4.6% YOY throughout the first three quarters of the ’15-’16 production season.
Overall, SMP production increased most significantly YOY during Jun ’16 on a percentage basis, followed by butter. NFDM production declined the most on a percentage basis throughout the month, resulting in a slight YOY decline in total powder production.