Led by Wisconsin, Cheese Production Up 8% in March
Published: Friday, May 15, 2026
You'll recall that March milk production was up 2.3% 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% from February, and 1.2% above March 2025. Output for the three-month period hit 3.7 billion pounds, up 3.1% from 2025.
Wisconsin produced 311.9 million pounds of the March total, up 9.9% from February, and 1.2% above a year ago. California produced 185.5 million pounds, down .2% from February, and down 15.2% from a year ago. Idaho produced 86.2 million, up 8.4% from February, and 1.4% more than a year ago.
Mozzarella production totaled 421.6 million pounds, up .5% from a year ago. Year to date, 1.2 billion pounds had been produced, up 2.8% from 2025. American cheese came in at 488.3 million pounds, up 7.4% from February, but 2.3% below a year ago. YTD, 1.4 billion pounds had been produced, up 1.2%.
Italian-style cheeses totaled 542.3 million pounds, up 6.6% from February, and 2.3% above a year ago, with YTD hitting 1.6 billion pounds, up 5.1%.
Cheddar output jumped to 341.8 million pounds, up 25.2 million, or 8%, 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%, from a year ago.
Butter production climbed to 231.5 million pounds, up 9.1 million pounds, or 4.1%, from February's level, which was revised up 1.2 million pounds. Output was up 2.7 million pounds, or 1.2%, from a year ago. YTD, 694.8 million pounds had been produced, up 7.1% from a year ago.
Yogurt production totaled 490.3 million pounds, up 6.5% from a year ago, with YTD output at 1.4 billion pounds, up 6.5%. Hard ice cream climbed 62.8 million pounds, was up 5.1% from 2025, with YTD output hitting 176.7 million pounds, up 1.6%.
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%, from February, and up 2.7 million pounds, or 3.6%, from a year ago. YTD whey hit 223.6 million pounds, up 4.7%. Whey stocks also grew, hitting 64 million pounds, up 3.9 million, or 6.3%, from February, but were down 200,000 pounds, or .5%, from 2025.
Nonfat dry milk output shot up to 175.3 million pounds, up 23.4 million, or 15.4%, from February, and up 15.8 million, or 9.9%, from a year ago. YTD output, at 478.6 million pounds, was up 5.1%. Stocks grew to 235.7 million pounds, up 15.3 million, or 6.9%, from February, but down 27.1 million, or 10.3%, from a year ago.
Skim milk powder production climbed to 37.4 million pounds, up 9.7 million pounds, or 35.2%, from February, and up 3.4 million, or 10.1%, from a year ago. YTD skim milk powder stood at 112.2 million pounds, up 13% 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% 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% from a year ago, with year to date shipments up 109.9%. Again, the price was right.
Whey shipments totaled 54 million, up 37.1%, and up 35.6% year to date.
Nonfat-skim milk powder totaled 131.2 million pounds, down 7.8%, from a year ago, first year over year decline since September 2025, according to HighGround, but year to date exports were up 5%. 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.
Dairy culling remains above year ago numbers. USDA says 48,000 dairy cows were sent to slaughter the week ending April 25, up 900, or 1.9%, from a year ago. Year to date 934,300 had been culled, up 51,600, or 5.8%, 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," said 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."
Meanwhile, the latest Margin Watch from Chicago-based Commodity and Ingredient Hedging LLC said, "Dairy margins were weaker in nearby periods as milk prices declined over the second half of April while feed costs were mixed, with corn prices sharply higher and meal lower."
The MW added, "Milk futures continue to diverge between classes as strength in the NDM market has lifted Class IV milk to a historic high relative to Class III milk. The current differential in May futures between Class IV and Class III milk represents an all-time high for any contract month in history and has helped producers as the Class I price has now reverted to the "higher of" between the two classes after that pricing formula returned to the old method last summer."
The MW also detailed the March Milk Production report, stating the increase came on an increasing dairy herd, highest since the 1990's, plus increased milk per cow. It warned, however, "Higher milk production is taxing capacity and has led to Class III milk prices trading anywhere from $2 to $8 below class for spot loads." The MW concluded with USDA's monthly Cold Storage report, which revealed building dairy product inventories resulting from heavier milk production.
Cash block Cheddar saw some ups and downs but closed last Friday at $1.6225 per pound, 1.75 cents lower on the week, and 19.50 cents below a year ago. The barrels finished at $1.60, after holding at $1.6150 since April 23, 1.50 cents lower on the week, and 17 cents below a year ago. There were 36 sales of block.
Dairy Market News reports that Central region milk output is strong and Class III prices at mid-week ranged $7-under to flat class, though most contacts said offers were closer to the top of the range. Spot availability for Class III milk varied, as some were unable to find it even when offering above class prices. Cheesemakers continue to run busy schedules. Retail and food service demand was unchanged, but some noted an uptick in interest from international buyers.
Spring milk production peaks in the West are more sustained this year, says DMN, which is providing plenty for cheese manufacturers. Spot load demand was moderate to stronger from cheesemakers. Production is generally busy seven days a week. Spot loads are available, but some manufacturers anticipate tight inventories for at least some varieties through second quarter. Demand from international buyers is somewhat strong, which is helping to keep inventories on par with production. Domestic demand is steady. Retail/food manufacturer sales are more active than food service/restaurant sales, according to DMN.
After dropping 11 cents the previous week to $1.5950 per pound, CME butter closed the following Friday at $1.6650, 7 cents higher on the week, but 66.50 cents below a year ago. There were 38 sales on the week.
Central region contacts report milk components are decreasing week-to-week but remain above a year ago. Cream production is strong and Class II and Class III processors continue to pull heavy volumes, keeping inventories snug. Demand for cream is light from butter makers, as they are using available volumes from within their network. Domestic butter demand was unchanged from last week. Export interest is picking up.
Spring milk and cream production is keeping plenty of loads headed to butter manufacturers in the West.
Spot cream demand was moderate from butter manufacturers as contractual loads are generally sufficient, and cream prices are not often enticing. Churns remain busy seven days a week. Inventories vary from stable to increasing. Eighty and 82% butterfat butter is available. Domestic demand is steady. International demand varies from somewhat lighter to strong. Sellers indicate global disruptions are giving them logistics challenges and in turn decreasing demand from buyers in some cases, according to DMN.
Grade A nonfat dry milk set another record high this week, reaching $2.2950 per pound last Thursday. It closed last Friday at $2.29, up 2.75 cents on the week, and $1.0825 above a year ago. There were 13 CME sales on the week.
Dry whey closed last Friday at 70 cents per pound, up a quarter-cent on the week, and 15.75 cents above a year ago, with three sales for the week.
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