The USDA’s April Dairy Products Production report highlights robust growth across several key dairy categories, reinforcing industry player optimism across the dairy industry as it navigates a complex but increasingly dynamic global market. Among the standouts, American-style cheese production posted the largest year-over-year increase, jumping 6.1%—a notable surge following both robust domestic demand and export opportunities.
Butter production also advanced 3.9% year-over-year, while Italian-style cheese, showing consumer demand growth in both retail and foodservice sectors, climbed 2.2%. Cheese manufacturers are increasing output following high domestic and international demand.
Whey protein concentrate production turned a corner this month, reaching 42.2 million pounds produced in April, marking the first month of growth seen since the start of 2025. According to industry participants, manufacturers have focused on higher-margin whey products like WPC, shifting away from lower-value alternatives such as sweet whey powder and whey protein concentrate 34%.
Tight inventories persist in the whey complex, as production continues to lag against growing domestic demand. US-produced WPC continues to hold a price advantage over European equivalents, the EBP for WPC 80% regular FCA US [Series WCRUS] valued at $9,920.7/mt and the EBP for WPC 80% regular exw EU [ series: WCREU] valued at $12,451.7/mt helping to drive some export demand and keeping domestic inventories tight.
A 1.6% rise in milk production for April, along with near-record high milk component levels, gave processors the flexibility to operate at or near full capacity and enabled strong production across a range of dairy categories. Industry players told Expana that strong milk output and production levels over the spring season are leading to renewed optimism about dairy product stock levels heading into the summer months.
While the spring flush season comes to an end, the strong milk output and production levels have many industry players optimistic about supply levels heading into the summer months.
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Image source: Getty
Written by Brittany Feyh
