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U.S. Dairy Product Production Update – Jul ’18

  • July 6, 2018
  • by Belinda Przybylski
Executive Summary U.S. dairy product production figures provided by USDA were recently updated with values spanning through May ’18. Highlights from the updated report include:
  • May ’18 U.S. butter production increased 2.8% YOY, finishing at a three year seasonal high for the month of May. Butter production has finished higher on a YOY basis over eight consecutive months through May ’18.
  • U.S. cheese production finished higher on a YOY basis for the 62nd consecutive month during May ’18, increasing by 1.4% to a record seasonal high for the month of May. U.S. dry whey production increased on a YOY basis for the 15th time in the past 16 months, finishing up 3.2% to a six year seasonal high.
  • Combined production of U.S. nonfat dry milk and skim milk powder declined 3.7% on a YOY basis, finishing lower for the second consecutive month. U.S. nonfat dry milk production declined 4.5% YOY throughout the month while skim milk powder production finished 1.3% lower.
Additional Report Details Butter – Production Reaches a Three Year Seasonal High, Finishes up 2.8% YOY According to USDA, May ’18 U.S. butter production continued to decline seasonally but remained 2.8% higher YOY, finishing at a three year seasonal high for the month of May. Butter production has increased on a YOY basis over eight consecutive months through May ’18. A 9.6% YOY increase in butter production experienced throughout the Western U.S. more than offset YOY declines in Central U.S. (-3.0%) and Atlantic U.S. (-2.3%) production experienced throughout the month. ’16-’17 annual butter production declined 1.8%, finishing at a six year low, however ’17-’18 YTD production figures have rebounded by 4.0% YOY throughout the first two thirds of the production season. Cheese – Production Reaches a Record Seasonal High, Finishes up 1.4% YOY May ’18 total U.S. cheese production finished higher on a YOY basis for the 62nd consecutive month, finishing up 1.4% to a record seasonal high for the month of May. Cheddar cheese production declined 3.0% on a YOY basis throughout the month however the decline was more than offset by a 3.4% YOY increase in other-than-cheddar cheese production experienced throughout the month. ’16-’17 annual cheese production increased 3.4% to a record annual high as cheddar cheese production finished 6.0% higher, while ’17-’18 YTD production figures are up an additional 3.0% throughout the first two thirds of the production season. Dry Whey – Production Reaches a Six Year Seasonal High, Finishes up 3.2% YOY May ’18 U.S. dry whey production increased 3.2% YOY, finishing higher for the 15th time in the past 16 months and reaching a six year seasonal high for the month of May. Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production declined on a YOY basis throughout May ’18, however, finishing down 1.0%. Combined dry whey, WPC and WPI production increased 1.6% YOY throughout May ’18 as higher dry whey production more than offset lower combined WPC and WPI 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 5.8% YOY throughout the first two thirds of the production season while combined production of dry whey, WPC and WPI is up 4.7%. NFDM/SMP – NFDM & SMP Production Both Finish Lower YOY, Total Production Down 3.7% May ’18 U.S. nonfat dry milk (NFDM) production declined 4.5% YOY, finishing lower for the second consecutive month and reaching a five year seasonal low for the month of May. 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 May ’18, declining by 1.3%. SMP production has declined over ten consecutive months through May ’18. Combined production of NFDM and SMP declined 3.7% throughout the month, finishing lower for the second consecutive month. ’16-’17 annual combined production of NFDM and SMP increased 4.1% 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 0.2% throughout the first two thirds of the production season, despite the recently experienced declines. Overall, other-than-cheddar cheese production increased most significantly YOY on a percentage basis during May ’18, followed by dry whey, while NFDM production experienced the largest YOY decline in production throughout the month, followed by total powder production.
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