Skim milk powder stocks show largest YOY growth
USDA’s 2020 annual dairy product report shows skim milk powder had the greatest increase in production for the year as many processors transitioned to more storable products during the pandemic.
National Milk Producers Federation chief economist Peter Vitaliano tells Brownfield while stocks of dairy products have been increasing since the last half of 2020, the outlook for recovering demand is helping strengthen prices.
“And helping the market not get spooked by some increases in stocks, but focusing more on the longer-term outlook over the next several months,” he says.
That demand he says is coming from strong exports and returning purchases from schools, institutions, and food service.
Total cheese production totaled more than 13 billion pounds, up slightly from 2019 with Wisconsin production accounting for more than a quarter of that production. Italian cheese and American cheese both made up slightly more than 40 percent of the production mix.
Butter production totaled 2.15 billion pounds, up more than seven percent from the prior year. California accounted for nearly a third of production.
Nonfat dry milk was up more than seven percent from 2019 and skim milk powder was up more than 21 percent. Dry whey production was down nearly three percent while lactose was down 10 percent from the previous year.
Frozen yogurt production was down nearly 40 percent, the largest category decline.