U.S. non-fat dry milk production was 7.8% less in August 2012 then a year ago. The manufacture of skim milk powder (SMP) did increase by 4.3% during the same month but combined volumes were well down. Stocks of NFDM have also dropped to 105.6 million pounds (just under 48,000 tons), making them 37% lower than a year ago levels. SMP production has been trailing year ago levels every month in 2012 up to July. August was the first month in which SMP production has exceeded year ago levels. On a year-to-date basis SMP production is down 30% on the same time in 2011. Cheese production continued to grow in the month of August on a year-on-year basis.