Milk Powder Production Up 24.4 Per Cent

US - Nonfat dry milk (NDM) production posted a record 170.7 million pounds in February 2012. Combined with skimmed milk powder (SMP) production of 18.2 million pounds in February, NDM/SMP production increased 24.4 per cent (adjusted for Leap Day) vs. February 2011, according to USDA’s “Dairy Products” report released this afternoon, writes Mary Ledman, Sara Dorland, Sarina Sharp and Karen Endres.
calendar icon 5 April 2012
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February’s SMP production was 56 per cent less than January’s production on a daily average basis. This, coupled with a sharp rise in NDM stocks, signals a slow down in exports.

Daily Dairy Report expects production of NDM/SMP to continue to outpace the prior year due to ample milk supplies and additional processing capacity that is expected to come on line in May 2012.

Butter production was also up 10.0 per cent vs. February 2011, according to the report.

Total cheese production in February 2012 reached 857.8 million pounds, up 2.6 per cent (adjusted for Leap Day) vs. last year. Higher total cheese production was driven by a 2.0 per cent year-over-year increase in American cheese production and a 1.6 per cent gain in mozzarella production. It is important to track Cheddar cheese production because it’s the only type of cheese sold on the CME spot cheese markets and used in the California 4b and Federal Order Class III milk pricing formulas. Production of Cheddar cheese was up 2.5 per cent vs. February 2011.

CME cash Cheddar block and barrel cheese markets settled unchanged at $1.49/lb. and $1.4625/lb., respectively with a single barrel bid left on the board. The spot butter market closed at $1.4375/lb. down 1.75¢ on a bid.

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