The USDA’s report shows total cheese production in October 2015 was up 1.5% on October 2014 – the smallest increase in six months.
Butter production was down 1.7% month-on-month, driven mainly by a 9% decline in California’s production. Total butter production has been down on 2014 all year. However, Jerry Dryer comments that, taking California out of the equation, western butter output was up 1.5%, and stocks were abnormally high at the end of the month. In addition, butter is continuing to demand a high price in the US – more than double what it’s selling for anywhere else – hardly encouraging manufacturers to slow down their production. We expect the high US price to continue, at least for a few more months.
Milk powder production in October was also down on October 2014. Non-fat dry milk was down 11.9%, total skim milk powder 7.2% and dry whole milk 38.3%. Milk protein concentrate, on the other hand, was up by 99.7% on October 2014, or 4.6% on September 2015. Jerry Dryer comments that the shift suggests export interest, particularly combined with trimming of milk powder inventories.
