US Dairy Sector Sees Record Cheese Production and Shift in Milk Powder

The United States Department of Agriculture’s (USDA) May 2026 Dairy Products report highlighted significant changes in dairy production. Total U.S. cheese production, excluding cottage cheese, achieved a new milestone with 1.28 billion pounds, marking a 2% increase from May 2025 and a 1.1% rise from April 2026.

Cheese Production Insights

Italian-type cheese varieties were a major contributor to this growth, reaching 560 million pounds, a 6.5% year-over-year increase. However, American-type cheese production faced challenges, dropping 2.6% compared to May 2025, though it did improve by 1.5% from the previous month.

Butter and Milk Powder Trends

Butter production maintained steady growth, hitting 224 million pounds, a 3.5% increase from the previous year. In contrast, the skim milk powder segment saw a dramatic decrease, falling by 39.7% to 29.4 million pounds.

Whey and Frozen Dairy Products

Whey processing showed positive trends, with dry whey output increasing by 12.2% year-over-year to 82.6 million pounds, and whey protein concentrate production rising 3% to 43.6 million pounds. Meanwhile, the lactose market experienced a slight decline of 0.6%, ending at 98.3 million pounds.

Frozen dairy product production also saw significant growth. Regular hard ice cream production expanded by 7.1% to 69.2 million gallons, and low-fat ice cream grew by 1.5% to 36.4 million gallons. Sherbet production had the most substantial increase, rising by 16.1% to 1.95 million gallons, while frozen yogurt production grew by 2.7% to 3.17 million gallons.