Dairy Market R
Dairy Management Inc.
Vol u m e 2 5 | N o. 5
Overview
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M ay 2022
D MI | NMP F
Robust growth of both domestic consumption and exports of all cheese have been bright spots in the overall U.S. dairy situation. Milk prices reached their
highest-ever monthly level during March, as measured by the U.S. average all-milk price, and the total export volume of all dairy products recovered markedly that month from the relative doldrums of the prior three months. However, record or near-record levels of the cost of virtually all inputs needed to produce milk are tempering the gains on farmer balance sheets. Meanwhile, retail price inflation has been accelerating for several dairy product categories, including fluid milk and butter, which are significantly outpacing consumer price increases for all food and beverages as well as the overall rate of inflation. Price inflation for cheese and frozen dairy products continues to be relatively subdued, by comparison.
Commercial Use of Dairy Products Significant increases in consumption of all cheese was a bright spot in the domestic dairy market during the first quarter. Overall, the U.S. population consumed a full percent less milkfat in all dairy products during the first quarter, while total skim solids consumption was relatively little changed. The drop in milkfat uptake was caused partly by lower butter consumption as well as an estimated 2.5 percent reduction in total milkfat consumed in all fluid milk products.
U.S. Dairy Trade U.S. dairy exports recovered strongly during the first quarter of 2022 from January’s lowest point in three years to March’s seventh highest-ever month, as measured by monthly percent of U.S. milk solids production. This rise from 13.6 percent to
18.1 percent was the second-highest ever percentage-point increase in this measure over two consecutive months. A disproportionate number of the largest two-month increases of this type take place during the January through March period in various years. The largest product volume increases over the period this year were in the usual leading categories of milk powders, most whey products and, to a somewhat lesser extent, butter and cheese. Growth in the major product categories of U.S. dairy imports has moderated considerably from the high levels reached during the last several months of 2021. March imports of butter, MPC and casein were below year-earlier levels, while total cheese imports were up that month by barely in the double-digit percentages.
Domestic Commercial Use
Jan–Mar 2022
Jan–Mar 2021
Total Fluid Milk Products Yogurt Butter American–type Cheese All Other Cheese Total Cheese Dry Skim Milk All Products (milk equiv., milkfat basis) All Products (milk equiv., skim solids basis) All Products (milk equiv., total solids basis)
11,076 1,184 484 1,355 1,940 3,295 156 52,321 44,960 47,275
11,381 1,212 522 1,318 1,844 3,163 223 52,859 44,979 47,433
2021–2022 Change
Percent Change
-305 -27 -39 37 96 132 -68 -539 -20 -158
-2.7% -2.2% -7.4% 2.8% 5.2% 4.2% -30.3% -1.0% 0.0% -0.3%
(million pounds)