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

  • May 5, 2020
  • by Belinda Przybylski
Executive Summary U.S. dairy product production figures provided by the USDA were recently updated with values spanning through Mar ’20. Highlights from the updated report include:
  • U.S. butter production increased on a YOY basis for the ninth time in the past ten months during Mar ’20, finishing up 7.5% and reaching a record high seasonal level.
  • U.S. cheese production increased 0.2% on a YOY basis during Mar ’20, reaching a record high seasonal level, while dry whey production increased on a YOY basis for the seventh time in the past eight months, finishing up 5.4%.
  • Combined production of U.S. nonfat dry milk and skim milk powder increased 1.6% on a YOY basis during Mar ’20, finishing higher for the ninth consecutive month. Nonfat dry milk production increased 6.7% YOY throughout the month, more than offsetting a 15.4% YOY decline in skim milk powder production.
Additional Report Details Butter – Production Reaches a Record High Seasonal Level, Finishes up 7.5% YOY According to the USDA, U.S. butter production remained higher on a YOY basis for the ninth time in the past ten months during Mar ’20, increasing by 7.5% and reaching a record high seasonal level. The YOY increase in butter production was in addition to a 4.1% upward revision to previous year volumes. YOY increases in production were widespread regionally and led by the Atlantic U.S. (+15.4%), followed by the Western U.S. (+8.0%) and Central U.S. (+4.9%). ’18-’19 annual butter production increased 1.3% YOY, reaching the highest annual level on record. ’19-’20 YTD butter production has increased an additional 3.7% on a YOY basis throughout the first half of the production season. Cheese – Production Reaches a Record High Seasonal Level, Finishes up 0.2% YOY U.S. cheese production rebounded from the seven month low level experienced throughout the previous month while finishing 0.2% higher on a YOY basis, reaching a record high seasonal level. The YOY increase in cheese production was the first experienced throughout the past three months. A 1.5% YOY increase in Central U.S. cheese production more than offset lower production experienced throughout the Atlantic U.S. (-0.9%) and Western U.S. (-1.0%). Cheddar cheese production increased 1.1% on a YOY basis throughout the month, more than offsetting a 0.2% YOY decline in other-than-cheddar cheese production. ’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 YTD cheese production has declined by 0.3% on a YOY basis throughout the first half of the production season. Dry Whey – Production Increases YOY for the Seventh Time in Eight Months, Finishes up 5.4% U.S. dry whey production increased 5.4% on a YOY basis during Mar ’20, finishing higher on a YOY basis for the seventh time in the past eight months. A 13.5% YOY increase in Central U.S. dry whey production more than offset lower production experienced throughout the Western U.S. (-0.3%) and Atlantic U.S. (-2.5%). Combined whey protein concentrate (WPC) and whey protein isolate (WPI) production remained lower on a YOY basis for the tenth consecutive month during Mar ’20, finishing down 4.6%, however combined production of dry whey, WPC and WPI finished 1.4% higher YOY. ’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 YTD dry whey production has rebounded by 3.8% on a YOY basis throughout the first half of the production season however combined production of dry whey, WPC and WPI has declined by 0.2%. NFDM/SMP – Combined Production Higher YOY for the Ninth Consecutive Month, Finishes up 1.6% U.S. nonfat dry milk (NFDM) production increased on a YOY basis for the tenth time in the past 11 months during Mar ’20, finishing up 6.7%. Higher YOY production experienced throughout the Central U.S. (+9.7%) and Western U.S. (+10.7%) more than offset lower production experienced throughout the Atlantic U.S. (-9.1%). Production of skim milk powder (SMP), which is more suited to the requirements of most global markets, finished lower on a YOY basis for the first time in the past five months during Mar ’20, however, declining by 15.4%. Mar ’20 combined production of NFDM and SMP remained 1.6% higher on a YOY basis, finishing higher for ninth consecutive month. ’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 YTD combined production of NFDM and SMP has increased by an additional 5.8% on a YOY basis throughout the first half of the production season. Overall, butter production increased most significantly YOY on a percentage basis during Mar ’20, while skim milk powder production declined most significantly on a percentage basis throughout the month.  
Global Dairy Trade Results Update – 5/5/20
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