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US: skimmed milk powder production

This page contains:
  • two graphs and two tables giving us an overview of monthly production of Nonfat Dry Milk and SMP, expressed in pounds, over a given period.
  • a chart comparing data for the monthly production of Skimmed Milk Powder (Nonfat Dry Milk and SMP *) in the U.S. and wholesale market price trends over a given time period;
  • two graphs showing the annual and the cumulative monthly SMP production trend in the EU-28, New Zealand and the U.S.

* Nonfat dry milk (NDM) and skimmed milk powder (SMP) are very similar but are defined by two different sets of regulations and authorities. NDM is defined by the U.S. Food and Drug Administration, while SMP is defined by CODEX Alimentarius. Both are obtained by removing water from pasteurized skim milk. Both contain 5% or less moisture (by weight) and 1.5% or less milkfat (by weight). The difference is that skimmed milk powder has a minimum milk protein content of 34%, whereas nonfat dry milk has no standardized protein level.

N.B.:
Produced in 80 production plants, the United States is one of the world's largest manufacturers of Skimmed Milk Powder.

Most of the plants are located in strategic locations, close to large urban conurbations in the northern part of the East Coast, in California and in the south central area of the US (Kansas, Oklahoma, Texas, New Mexico, Arizona, Colorado).
Massive quantities of SMP are provided by Dairy America, an Association of Cooperatives that counts among its members Agri-Mark Inc., California Dairies Inc., Land O'Lakes Inc., Maryland & Virginia Milk Producers Association, O-AT-KA Milk Producers Inc., United Dairymen of Arizona, Dairy Farmers of America and Lone Star Milk Producers.

The reasons why the US is such a dominant supplier of SMP are that it has a considerable number of pastures at its disposal, it has made substantial investments in research and development, it adopts strict health regulations and quality standards and boasts efficient manufacturing systems (many US plants are able to adapt production around market needs). It is also able to produce all year round, even in winter.

The fluctuating production of SMP adapts to both the logic of the commodity's various uses as well as market demands, including international.

The prices (as regulated by the Dairy Export Incentive Program, or DEIP) and stocks are affected by both industry production trends and international price trends, which, in turn, are affected by the euro-dollar exchange rate.

US Skimmed Milk Powder Production
Nonfat Dry Milk (NDM)  '000 lb
Month 2004 2009 2014 2015 2016 2017 2018 2019 ± % on
2018
± % on
2017
January 129.320 158.484 138.661 167.705 137.463 153.848 160.301 172.690 +7,7% +12,2%
February 115.769 126.359 141.187 150.960 142.978 143.231 157.833 153.715(p) -2,6% +7,3%
March 117.981 137.811 167.853 180.878 172.003 160.916 178.694
April 134.011 142.028 160.342 180.771 170.796 172.821 163.859
May 151.291 150.452 162.139 180.013 165.837 167.910 159.893
June 144.095 146.065 148.648 165.441 146.643 162.814 146.911
July 134.566 133.175 166.602 155.265 150.787 151.825 144.296
August 113.617 107.049 116.134 123.892 117.550 136.753 122.805
September 93.936 87.598 112.467 119.974 125.486 134.572 108.826
October 94.814 92.800 134.973 118.360 140.051 145.008 125.067
November 83.789 102.289 151.402 127.939 128.105 141.440 131.703
December 99.192 127.412 164.224 151.150 154.935 164.014 142.741
Jan-Feb 245.089 284.843 279.848 318.665 280.441 297.079 318.134 326.405
% y-o-y ¹ +4,0% +16,2% -1,8% +13,9% -12,0% +5,9% +7,1% +2,6%
Total Year 1.412.381 1.511.522 1.764.632 1.822.348 1.752.634 1.835.152 1.742.929
% y-o-y ¹ +3,9% +7,0% +16,7% +3,3% -3,8% +4,7% -5,0%
Last Update: 04-04-2019
1) change from the same period of previous year , except for years 2004, 2009, 2014, where the change is from the same period 5 years ago
**: Adjusted for months of 30 days (Ex. The calculation of the production change of June compared to May is obtained by considering [June production] compared to [May production : 31 x 30])
(p) = provisional
Source: National Agricultural Statistics Service
US Skimmed Milk Powder Production
SMP  '000 lb
Month 2009 2014 2015 2016 2017 2018 2019 ± % on
2018
± % on
2017
January 17.663 60.401 41.107 51.225 55.590 45.753 39.784 -13,0% -28,4%
February 22.693 36.621 33.320 40.201 41.391 37.666 35.849(p) -4,8% -13,4%
March 24.432 43.272 39.442 40.564 52.693 42.055
April 24.645 49.951 33.099 43.189 50.206 49.446
May 26.697 59.441 35.538 50.865 51.012 50.365
June 16.796 53.036 34.676 55.853 39.515 58.947
July 14.023 28.514 34.882 48.815 47.842 47.488
August 10.677 54.073 39.288 46.426 44.813 47.560
September 12.585 40.931 26.837 38.447 29.102 46.592
October 10.174 43.443 39.723 41.475 25.965 37.464
November 18.924 30.635 44.940 47.389 41.609 29.906
December 22.601 43.186 43.472 54.726 49.895 50.801
Jan-Feb 40.356 97.022 74.427 91.426 96.981 83.419 75.633
% y-o-y ¹ - +140,4% -23,3% +22,8% +6,1% -14,0% -9,3%
Total Year 221.910 543.504 446.324 559.175 529.633 544.043
% y-o-y ¹ - +144,9% -17,9% +25,3% -5,3% +2,7%
Last Update: 04-04-2019
1) change from the same period of previous year , except for year 2014, where the change is from the same period 5 years ago
**: Adjusted for months of 30 days (Ex. The calculation of the production change of June compared to May is obtained by considering [June production] compared to [May production : 31 x 30])
(p) = provisional
Source: National Agricultural Statistics Service
Show/hide historical comparative overview among US NFDM prices (USD) and stocks

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