More Milk Moves Into Cheese, Butter and Ingredients as June Production Rises

As milk supplies continue to grow, June production numbers reveal how processors are balancing cheese, butter, powder and whey markets.

Whey_Adobe Stock
Whey
(TRAIMAK.BY/Ivan Traimak - stock.adobe.com.)

U.S. dairy processors continued to move more milk into cheese, butter and dairy ingredients in June, according to the latest USDA Dairy Products report.

Total cheese production, excluding cottage cheese, reached 1.23 billion lb. in June, up 1.1% from June 2025. Production was down 4.1% from May 2026 as processors moved past spring production levels.

Cheese remains the largest use of U.S. milk, with production increases in several categories compared to a year ago. Italian-type cheese production totaled 522 million lb., down 0.3% from June 2025 and down 6.8% from May.

American-type cheese production totaled 485 million lb., up 1.1% from last year but down 2.6% from May.

Butter Production Jumps

Butter
(Canva)

Butter production posted one of the largest year-over-year increases in June. Processors produced 208 million lb. of butter, up 8.5% from June 2025. Production declined 7.2% from May.

The increase comes as more milkfat moves into butter production while processors manage milk supplies across dairy products.

Nonfat Dry Milk Production Climbs

Dry dairy product production showed mixed results in June. Nonfat dry milk production reached 165 million lb., up 14.2% from June 2025. Skim milk powder production moved lower, falling 46.8% from a year ago to 28.7 million lb.

The two products often compete for similar milk components, but demand has varied between domestic and international markets.

Whey Production Mixed

whey_powder

Whey production also showed different trends in June. Dry whey production totaled 80.9 million lb., up 7.3% from June 2025. Lactose production declined 11.5% to 86.7 million lb., while whey protein concentrate production fell 5.3% to 42.2 million lb.

As cheese production remains strong, whey continues to be an important outlet for dairy components used in food, beverage and nutrition products.

Frozen Dairy Products See Growth

Since record-keeping began, U.S. annual per capita ice cream consumption has nearly doubled
(Canva)

Frozen dairy production increased across most categories. Regular hard ice cream production totaled 68.7 million gal., up 5.2% from June 2025. Low-fat ice cream production reached 39.0 million gal., up 7.2%.

Sherbet production increased 7.1% to 2.04 million gal., and frozen yogurt production increased 0.9% to 3.14 million gal.

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