Fluid Milk and Cream - Western U.S.
Steady volumes of farm milk are flowing to California processing plants. Despite strong milk production across the state, handlers are finding homes for their milk loads. However, many manufacturing facilities mostly are running seven days a week. Milk offers and orders are well balanced. Arizona farm milk supplies are increasing in this spring flush. Milk yield per cow is trending higher. Component levels have also been strong. Milk handlers say that they are able to manage the milk loads produced among processors within the state.
Milk intakes from the different Classes haven't changed much from the previous week. Class I retail demand is steady.
In New Mexico, milk output is steady to down. A new regional plant just opened its door and has started to take on a good volume of milk for processing. Class I demand is a bit up, but Class III intakes increased considerably. Class II sales are lower compared to the previous week. There are some mechanical issues at a few plants, but they haven't affected much the flow of milk in New Mexico. No surplus milk was reported, and holdovers are low.
Pacific Northwest milk production is moving higher, following typical seasonal patterns. Class I demand is steady and milk intakes are in good balance with processing needs. Manufacturers are not needing to reach out far into neighboring states for milk. Processors are mostly content to use the milk within the local milk shed.
Milk production in the mountain states of Idaho, Utah and Colorado is steady to higher. Some industry contacts suggest milk output has plateaued for the moment. Intakes are generally in good balance with processing needs and there are not many excess loads looking for homes.
Single serve milk consumption from educational institutions is providing a steady pull on some of the milk produced. Condensed skim supplies and demand are unchanged from the previous week. Processors do not have any concern with the volumes available to them.
In the West, there are some reports of less cream volumes moving into the churns as the last minute holiday cream-based products are made. However, most churns are still actively running, just not at the same pace as in the past days. Cream is available to fulfill the demand of the market, but discounted loads are almost nonexistent. Cream multiples are unchanged from a week ago. Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.0600 - 1.2350 Information for the period April 8 - 12, 2019, issued weekly