DAIRY MARKET REPORT VOLUME 27 | ISSUE 5
5/22/2024
OVERVIEW U.S. cheese exports posted a 20 percent year-over-year increase during 2024’s first quarter, a bright spot in an otherwise soft picture for domestic and overseas U.S. dairy products. About 8.1 percent of total domestic cheese production was exported during the first quarter – a very strong number considering that the highest percentage of U.S. cheese production exported on an annual basis has been 7.1 percent. Growing cheese sales abroad is a key part of growing overall U.S. dairy exports. Domestic cheese prices are showing strength following a year of mostly weak performance, partly due to this recent export strength. Meanwhile, butter prices have been mostly closer to $3/lb. than to $2/lb. since the beginning of 2022. Feed prices have moderated considerably over the past year, as measured by the Dairy Margin Coverage feed cost formula. Coupled with slowly improving milk prices, they have increased the DMC margin to around the $9.50/cwt maximum Tier 1 coverage level under the program, with further increases likely.
COMMERCIAL USE OF DAIRY PRODUCTS Dairy consumption in the U.S. domestic market was weak during the first quarter of this year. The aggregate measures were all down over a year ago, adjusting for the leap year, as were the major product categories, with
DOMESTIC COMMERCIAL USE
the exception of butter and yogurt. Continued weakness in food service consumption is a key factor causing these results.
JAN-MAR 2024
JAN-MAR 2023
2023-2024 CHANGE
PERCENT CHANGE*
(million pounds) Total Fluid Milk Products
10,934
10,918
16
-1.0%
Yogurt
1,232
1,205
27
1.1%
Butter
526
511
15
1.8%
American-type Cheese
1,373
1,422
-49
-4.5%
All Other Cheese
1,964
1,957
7
-0.7%
Total Cheese
3,336
3,379
-42
-2.3%
Dry Skim Milk
138
212
-73
-35.3%
All Products (milk equiv., milkfat basis)
53,401
53,467
-66
-1.2%
All Products (milk equiv., skim solids basis)
45,419
45,192
227
-0.6%
All Products (milk equiv., total solids basis)
47,980
47,812
167
-0.8% *Adjusted for Leap Year