DAIRY MARKET REPORT VOLUME 27 | ISSUE 2
2/22/2023
OVERVIEW Milk prices and the Dairy Margin Coverage Program margin both broke four-month streaks of improvement in December, with DMC for the year ending with its lowest calendar-year margin since the current dairy safety net system began nearly a decade ago. U.S. dairy exports, meanwhile, in 2023 saw the third-highest percentage of U.S. milk solids production exported ever for the full year – a noteworthy performance, though still a pace that moderated from its record-setting first quarter export percentage. Stocks of most major dairy products continued to fall in December, as milk and milk solids production growth continues below that of demand growth.
COMMERCIAL USE OF DAIRY PRODUCTS Domestic commercial use of all cheese showed more than one percent year-over-year growth during the fourth quarter. Growth in domestic butter use approached 10 percent at the same time. Growth in overall domestic use was more balanced between the milkfat and skim solids
DOMESTIC COMMERCIAL USE
milk equivalent basis measurements during the quarter. Skim solids use likely includes relatively more low-value products, particularly those that are lactose-based, compared to milkfat use.
OCT-DEC 2023
OCT-DEC 2022
2022-2023 CHANGE
PERCENT CHANGE
(million pounds) Total Fluid Milk Products
11,081
11,138
-57
-0.5%
Yogurt
1,119
1,107
12
1.1%
Butter
613
560
52
9.4%
American-type Cheese
1,399
1,392
6
0.4%
All Other Cheese
2,035
1,997
38
1.9%
Total Cheese
3,434
3,389
45
1.3%
Dry Skim Milk
146
197
-52
-26.2%
All Products (milk equiv., milkfat basis)
57,473
56,543
930
1.6%
All Products (milk equiv., skim solids basis)
45,896
44,961
935
2.1%
All Products (milk equiv., total solids basis)
49,599
48,622
977
2.0%