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Skim milk powder and butter processing show gains in January dairy product report

The USDA says skim milk powder and butter production led dairy product growth in January, while butter and whey products had modest gains.

Total cheese production was 1.28 billion pounds, nearly five percent more than January 2025 and fractionally above the prior month. Italian cheese production increased 6.5 percent on the year, but less than two percent from December, while American cheese increased almost four percent from 2025 and slightly on the month.

Butter production totaled 231 million pounds, up six percent from the prior year and 11.5 percent above the month before.

Nonfat dry milk declined more than six percent from 2025, while skim milk powder rose more than 21 percent.

Dry whey production was up 7.5 percent, and lactose was up two percent on the year.