US: Cheese sales boost dairy consumption growth

The article reports a rebound in the US domestic milk consumption in the third quarter, marking the first positive annual growth since the beginning of the year, largely driven by an increase in cheese consumption. Despite a slight decrease in dairy export volumes from the previous quarter's record high, the US dairy industry is on track to set a new record for the year. Retail price inflation for dairy products and most individual dairy products was lower in October than in the previous month. The Dairy Margin Coverage program made a second payment for 2022, and milk prices are expected to be lower in 2023. Consumption of American cheese, butter, and whey products continued to grow, while fluid milk, yogurt, and other cheeses experienced negative growth. Dairy cow numbers surged above their year-ago level in September, and total US milk solids production exceeded raw milk production. Dairy inventories, such as cheese and butter, saw declines from record levels in September, with non-US varieties contributing to the drop in cheese inventories. Finally, dairy prices recovered in October, with skim milk powder and whey prices showing notable increases.