For the fourth consecutive month, total U.S. milk production experienced positive year-over-year growth, according to the June Milk Production report released by the National Agricultural Statistics Service (NASS). Total U.S. milk production was 16.324 billion pounds during June 2010, a 2.4 percent increase over year-ago production levels. Through the first half of 2010, total U.S. milk production has increased approximately 0.8 percent compared to year-ago levels. Total dairy cow numbers have increased 35,000 since January 2010.
In June California experienced its largest milk production growth (3.5%) compared to monthly year-ago levels since February 2008. Cow numbers in California increased 1,000 from May, the first month-to-month increase in nearly two years. However, June 2010 cow numbers are still 2.9 percent lower than monthly year-ago levels.
Of the 23 major dairy states only three states saw a decline in their June milk production compared to monthly year-ago levels. Wisconsin experienced the largest positive monthly production growth (5.1 percent) followed by Michigan (4.7 percent) and Washington (4.7 percent).
While milk production has increased during 2010, so too has demand for dairy products. Commercial disappearance (CD) levels for cheese, butter and nonfat dry milk all increased through May 2010 compared to year-ago levels. Positive increases in other-type cheese CD (4.7 percent) were more than enough to offset declines in American-type cheese CD (0.6 percent) so far in 2010. Butter CD has increased 1.3 percent through the May, while nonfat dry milk CD experienced a +15.4 percent growth compared to year-ago levels.
Commercial disappearance numbers were buoyed by a dramatic surge in U.S. dairy exports over the past three months. Between March and May 2010 cheese exports increased nearly 83 percent compared to year-ago levels, while butter and nonfat dry milk exports increased 189 percent and 72 percent, respectively. Through the first five months of 2010 cheese exports were 140.3 million pounds (+55 percent), butter exports were 43.7 million pounds (+121 percent) and nonfat dry milk exports were 267.3 million pounds (+37 percent). Total U.S. dairy export quantities through May increased 36 percent compared to year-ago levels, while total export value experienced an increase of 64 percent.
Increased demand has helped lead to higher prices for dairy products in 2010 compared to year-ago levels. NASS block cheddar cheese prices through the week ending July 17, 2010 have averaged about $1.44, more than 20 percent above their year-ago levels. The NASS average butter price has averaged $1.49, a 29.5 percent increase over its year-ago level and the NASS nonfat dry milk prices are averaging nearly 43 percent higher than year-ago levels, with an average price level of $1.18.
Source: International Dairy Foods Association
