You’ll recall that September saw a small uptick in U.S. milk production, up 0.1 percent from a year ago, and components were up as well. The September Dairy Products report shows where the milk went.

Cheese production totaled 1.160 billion pounds, down 3.1 percent from August and only slightly above September 2023. Year to date 10.7 billion pounds has been produced, up 0.5 percent from 2023.

Wisconsin produced 283.2 million pounds, down 3.9 percent from August, and 0.9 percent below a year ago. California output fell to 200.5 million pounds, down 6.0 percent from August, and 2.3 percent below a year ago. Idaho provided 89.6 million pounds, up 3.4 percent from August and 2.5 percent above a year ago. New Mexico vats produced 75.0 million pounds, down 15.9 percent from August, and 3.0 percent below a year ago.

Italian cheese output totaled 486.6 million pounds, down 2.7 percent from August but 1.5 percent above a year ago. Year to date production hit 4.5 billion pounds, up 3.1 percent.

American output fell to 455.8 million pounds, down 4.4 percent from August and 3.7 percent below a year ago. YTD, at 4.2 billion pounds, was down 4.0 percent from 2023.

Mozzarella, at 389.6 million pounds, was up 2.7 percent from a year ago, with YTD output at 3.6 billion pounds, up 4.2 percent.

Cheddar production dropped to 311.8 million pounds, down 9.6 million or 3.0 percent from August, and down 8.2 million pounds or 2.6 percent, from a year ago. YTD Cheddar stood at 2.9 billion pounds, down 6.5 percent from a year ago.

Butter production, at 159.2 million pounds, was virtually unchanged from August but was up 16.1 million pounds or 11.3 percent from a year ago. YTD butter was at 1.7 billion pounds, up 5.8 percent from 2023. This output represents a new high for the month of September and follows a record high in August.

Yogurt production totaled 431.1 million pounds, up 7.1 percent from a year ago, with YTD output at 3.7 billion, up 4.8 percent.

Hard ice cream, at 59.3 million pounds, was down 2.8 percent from 2023. YTD, 564.2 million pounds had been produced, up 2.0 percent from a year ago.

Dry whey output inched up to 68.0 million pounds, up 2.8 million pounds or 4.2 percent from August, but was down 10.9 million or 13.8 percent from a year ago. YTD whey was at 661.5 million pounds, down 8.4 percent.

Whey stocks slipped to 56.7 million pounds, down 1.8 million or 3.1 percent from August, and down 26.6 million pounds or 31.9 percent from a year ago.

Nonfat dry milk output, at 114.3 million pounds, was down 1.9 million or 1.6 percent from August, but was up 14.3 million pounds or 14.3 percent from a year ago. YTD NFDM was at 1.3 billion pounds, down 12.5 percent. Stocks fell to 249.7 million pounds, down 11 million, or 4.2 percent from August, but were up 9.1 million pounds or 3.8 percent from 2023.

Skim milk powder production climbed to 53.2 million pounds, up 2.9 million pounds or 5.8 percent from August, but was down 14.5 million or 21.4 percent from a year ago. YTD SMP was at 414.7 million pounds, down 18.0 percent from 2023.

The Nov. 4 “Daily Dairy Report” points out that “Higher protein products continued to dominate the whey stream as production of whey protein isolates leapt 22.5 percent year over year in September to 17.11 million pounds.”

Meanwhile, the DDR’s Sarina Sharp wrote in the Nov. 1 Milk Producers Council newsletter, “Dairy markets are awash in cream thanks to relentless increases in butterfat component levels. Through September, the U.S. dairy herd made 0.7 percent less milk than in the first nine months of 2024. But over the same period, butterfat output jumped 1.9 percent year over year. That’s made a huge difference in the value of cream. From coast to coast, cream multiples are trading below their seasonal averages,” Sharp said.

U.S. dairy exports rose in September, according to the USDA’s latest data. Cheese sailings totaled 86.3 million pounds, up 6.8 percent from a year ago, however HighGround Dairy points out that shipments to the top five U.S. destinations declined. HGD also reminded us that barrel cheese prices exceeded $2 per pound in mid-June, when some of these sales would have been booked, with blocks approaching similar levels and those prices may have softened demand.

Butter exports amounted to 5.6 million pounds, up 22.6 percent, and nonfat/skim milk powder totaled 138.2 million pounds, up 15.6 percent. HGD says that “compared to September 2022, when demand for U.S. product was notably stronger, this year’s shipments were down 6 percent. The largest jump over prior year was exports to Mexico, followed by the Philippines.”

Dry whey exports totaled 37.9 million pounds, up 9.3 percent. HGD adds that “Sweet whey powder exports rose year-over-year for the fourth consecutive month, reaching their highest levels since March 2023. Year-to-date totals have turned positive, after lagging behind 2023’s figures from February through August.”

Butter imports reached record levels, according to HighGround. “Importers likely brought more product ashore due to concerns about a dockworkers’ strike. While the strike occurred, it resolved in less than a week, and it seems likely that after two big months of imports, October’s data point may be lower.”

In other trade news, butter led the jump in Tuesday’s Global Dairy Trade auction where the weighted average was up 4.8 percent in the first event of November, up from a 0.3 percent decline on Oct. 15. Volume topped 80 million pounds for the fifth consecutive event, totaling 80.7 million pounds, down from the 85.9 million on Oct. 15. The average metric ton price, at $3,997 U.S., was up $145.

Butter was up 8.3 percent, after slipping 0.3 percent on Oct. 15. Anhydrous milkfat was up 4.6 percent following a 0.3 percent gain. Cheddar was up 4.0 percent and followed a 4.2 percent rise. Mozzarella was up 0.9 percent after plunging 8.2 percent. Whole milk powder was up 4.4 percent, unchanged in the last event, and skim milk powder was up 4.0 percent, after falling 1.8 percent. Buttermilk powder was up 2.1 percent. The only decline was on lactose, down 6.1 percent, after dropping 5.8 percent on Oct. 15.

StoneX says the GDT 80 percent butterfat butter price equates to $3.0932 per pound U.S., up 21.9 cents from Oct. 15, and compares to CME butter which was trading at $2.6625 per pound Thursday morning. GDT Cheddar, at $2.2559, was up 12.3 cents.

While Wall Street seemingly rejoiced in President Donald Trump’s decisive win in Tuesday’s election, many members of the dairy industry were gathered in Chicago for the American Dairy Products Institute (ADPI) Dairy Purchasing and Risk Management seminar.

When asked in the Nov. 11 Dairy Radio Now broadcast, which one will have the most impact on the dairy industry, StoneX broker Dave Kurzawski answered the ADPI seminar. He said the seminar will inspire, teach, and educate new and young entrants in the industry, as well as some older ones, on using risk management because, “If you want to be in the business long term, you have to take a real serious look at risk management.”