Dairy Product Exports Soar, Production Climbs
The U.S. dairy industry sent a record breaking volume of dairy products abroad in June, slightly outpacing May’s total on a daily average basis. Exports brought home more than $886 million in June, also besting the previous record, set in May, after adjusting for the shorter month. Milk powder exports faltered, but shipments of cheese, butter, and whey all topped year-ago levels by sizable margins. Cheese exports set a fresh record high, and average daily exports of whey protein concentrate (WPC) were the second highest ever.
Strong exports helped to prevent U.S. dairy product inventories from accumulating to burdensome levels, as milk and component production ticked upward in June. Once again, cheese output was particularly formidable at 1.16 billion pounds, up 2.7% from the prior year and led by a 5.7% jump in Mozzarella output. That left a lot of whey for processors to manage. Despite massive year-over-year jumps in production of WPC (up 16.9%) and isolates (up 28.4%), enough whey was left over to push dry whey production up 5.6% from June 2021. However, a recovery in dry whey exports pushed stocks lower from May to June.
For only the second time in the past 12 months, butter output topped year-ago levels. At 160.5 million pounds, production was up 0.3% from the already lofty volumes of June 2021. Combined output of nonfat dry milk (NDM) and skim milk powder slipped to 214.9 million pounds, down 10.4% from 2021’s hefty total. Manufacturers’ stocks of NDM inched higher from May to June but were still down 9.1% from last year.
August 4, 2022