You’ll recall March milk production was up 2.3 percent from a year ago. That kept U.S. churns, vats and dryers busy, according to USDA’s latest Dairy Products report.

Cheese output totaled 1.259 billion pounds, up 8.1 percent from February, and 1.2 percent above March 2025. Output for the three-month period hit 3.7 billion pounds, up 3.1 percent from 2025.

Wisconsin produced 311.9 million pounds of the March total, up 9.9 percent from February, and 1.2 percent above a year ago. California produced 185.5 million pounds, down 0.2 percent from February, and down 15.2 percent from a year ago. Idaho produced 86.2 million, up 8.4 percent from February, and 1.4 percent more than a year ago.

Mozzarella production totaled 421.6 million pounds, up 0.5 percent from a year ago. Year to date, 1.2 billion pounds had been produced, up 2.8 percent from 2025.

American cheese came in at 488.3 million pounds, up 7.4 percent from February, but 2.3 percent below a year ago. YTD, 1.4 billion pounds had been produced, up 1.2 percent.

Italian style cheeses totaled 542.3 million pounds, up 6.6 percent from February, and 2.3 percent above a year ago, with YTD hitting 1.6 billion pounds, up 5.1 percent.

Cheddar output jumped to 341.8 million pounds, up 25.2 million or 8.0 percent from February’s level, which was revised up 1.9 million pounds from last month’s report. But output was down 7.1 million pounds or 2.0 percent from a year ago.

Butter production climbed to 231.5 million pounds, up 9.1 million pounds or 4.1 percent from February’s level, which was revised up 1.2 million pounds. Output was up 2.7 million pounds or 1.2 percent from a year ago. YTD, 694.8 million pounds were produced, up 7.1 percent from a year ago.

Yogurt production totaled 490.3 million pounds, up 6.5 percent from a year ago, with YTD output at 1.4 billion pounds, up 6.5 percent. 

Hard ice cream climbed 62.8 million pounds, was up 5.1 percent from 2025, with YTD output hitting 176.7 million pounds, up 1.6 percent.

The additional cheese production resulted in plenty of whey. Dry whey output hit 78.7 million pounds, up 11.4 million pounds or 16.8 percent from February, and up 2.7 million pounds or 3.6 percent from a year ago. YTD whey hit 223.6 million pounds, up 4.7 percent. Whey stocks grew to 64 million pounds, up 3.9 million or 6.3 percent from February, and down 200,000 pounds, off 0.5 percent from 2025.

Nonfat dry milk output shot up to 175.3 million pounds, up 23.4 million or 15.4 percent from February, and up 15.8 million or 9.9 percent from a year ago. YTD output, at 478.6 million pounds, was up 5.1 percent. Stocks grew to 235.7 million pounds, up 15.3 million or 6.9 percent from February, but down 27.1 million or 10.3 percent from a year ago.

Skim milk powder production climbed to 37.4 million pounds, up 9.7 million pounds or 35.2 percent from February, and up 3.4 million or 10.1 percent from a year ago. YTD skim milk powder stood at 112.2 million pounds, up 13 percent from a year ago.

Thankfully, U.S. exports are strong and soared to a record 568.3 million pounds in March, according to the USDA’s latest data. HighGround Dairy credited especially strong shipments to Mexico, South Korea and New Zealand.

Cheese sailings totaled 139.9 million pounds, up 28.7 percent from March 2025, and were a major part of the uptick in exports to Mexico, says HighGround, adding that the increase was not a surprise considering U.S. prices compared to other global exporters.

Butter exports hit 25 million pounds, up 85.5 percent from a year ago, with year-to-date shipments up 109.9 percent. Again, the price was right.

Whey shipments totaled 54 million, up 37.1 percent, and up 35.6 percent year to date.

Nonfat-skim milk powder totaled 131.2 million pounds, down 7.8 percent, from a year ago, first year over year decline since Sept. 2025, according to HighGround, but year-to-date exports were up 5.0 percent. Demand from Mexico softened in March, along with Southeast Asia and South America, but powder remains tight here at home, evidenced by the record prices, which will surely curve exports.

Speaking of exports, the National Milk Producers Federation reports that NEXT member cooperatives secured 58 contracts in April, adding 16 million pounds of product in NEXT-assisted sales in 2026. These products will go to customers in Asia, North America, Oceania, Middle East-North Africa, South America, Central America and the Caribbean from April through November, says NMPF.

Powder reversed the Global Dairy Trade’s direction this week. The weighted average rose 1.5 percent, following a 2.7 percent decline on April 21 and a 3.4 percent drop on April 7. Volume fell to 30.3 million pounds, down from 33.1 million on April 21. The average metric ton price was $4,127 U.S., down from $4,143 on April 7.

The gains were led by buttermilk powder, up 9.0 percent. Skim milk powder was up 3.0 percent, following a 3.2 percent rise on April 21. Whole milk powder was up 2.2 percent after slipping 0.6 percent last time. Anhydrous milkfat advanced 1.1 percent after plunging 9.6 percent last time.

Butter was down 2.6 percent after leading the declines the past two events, dropping 7.9 percent Tuesday. Cheddar was down 3.6 percent, following a 1.1 percent gain last time, while GDT Mozzarella was up 4.7 percent, following a 3.1 percent decline.

StoneX says the GDT 80 percent butterfat butter price equates to $2.4451 U.S. per pound, down from $2.5233 on April 21. Cheddar equated to $2.0916, down from $2.1765 last time. GDT skim milk powder averaged $1.6091 per pound, up from $1.5641, while whole milk powder averaged $1.6968, up from $1.6629.

“North Asia purchases decreased significantly from the last event and has remained well-below average for months now,” StoneX concludes. “SE Asia and Oceania purchases increased from the last event, but it is also below average purchasing volumes. The Middle East also dropped off purchases, leaving only Central America and Europe at purchase volumes near historical average.”

Dairy culling remains above year ago numbers. USDA says 48,500 dairy cows were sent to slaughter the week ending April 18, up 3,100 or 6.8 percent from a year ago. Year to date 886,300 had been culled, up 50,700 or 6.1 percent from a year ago.

There is good reason culling running so strong. The Daily Dairy Report’s Sarina Sharp wrote in the May 1 Milk Producer Council newsletter “Live cattle futures set fresh all-time highs this week, easily besting the once unthinkable prices logged in October. Dairy producers are cashing substantially higher cull cow and beef calf checks than they did a year ago, when beef-related revenues were already astoundingly high. Newborn crossbred calves are selling for $700 or $800 more than they did at this time last year, while cull cows are $200 to $300 higher than they were in late-April 2025.

“It all adds up to a lot of non-milk revenue,” says Sharp. “When lower milk prices arrive, dairy producers will be somewhat shielded from the market signal to produce more milk. For now, they’re poised to enjoy record-shattering beef incomes and decent milk revenues to boot. They’ll likely continue to add cows.”