Psychrotrophic strains of Bacillus and Pseudomonas that demonstrated both proteolytic and lipolytic activity were incubated with Grade A milk. The yield of direct-acid cheese manufactured from inoculated milk decreased as psychrotrophic inoculation level increased. Yield reduction resulted from both lipid and protein degradation, and accounted for approximately 45 and 55% of the dry matter loss, respectively. Fat losses were observed from decreased milkfat tests and increased acid degree values. Protein losses were observed from increased non-protein nitrogen and whey nitrogen values. Therefore, cheese yield studies must involve assays of both protein and lipid on a dry matter basis. Acid degree values and fat disappearance in stored milk and total nitrogen in whey were the best indicators of reduction in yields. Although bacterial enumeration, titratable acidity and pH were not good indicators of yield, they may be important in determining when yield loss starts.