Fluid Milk and Cream - Western U.S. Dairy Report
In California, milk output is stable to increasing from a week ago. Manufacturers are content with the volumes of milk available to them. A lot of milk is moving to in-state balancing plants, but according to industry contacts nothing is going out of state. Class I milk sales are flat across the state. Some schools are preparing to close in the coming week for the holidays. Therefore, fluid milk demand is expected to decrease. The transition to the federal milk marketing order is keeping many dairy businesses busy as they adjust to new procedures, but it is not affecting milk processing/balancing duties.
Arizona milk production is growing, with some minor fluctuations. Milk handling is going as planned. Class I retail demand to fulfill the holiday orders is up. However, demand from schools and colleges is fading as they begin to recess for the winter break. Trucks’ availability is trickier now that some loads of milk are moving out of Arizona to help other states meet their needs.
In New Mexico, Class I usage is beginning to slow as educational institutions’ interest declines. Milk is flowing into neighboring regions that experienced recent storms. However, milk transportation issues arise due to drivers’ limited availability. Milk volumes produced are within expectations and they are adequate to meet all needs. Balancing facilities are running at or near full capacity.
Pacific Northwest milk production is following typical seasonal patterns. Although winter rains have issued into the region, cow comfort has not suffered much, and production is steady to higher. Intakes are up somewhat as some farmers continue to expand their operations. Manufacturers are not having any trouble getting the milk needed for processing. Bottling demand is steady. The region has a little extra cream showing up and milk and cream handlers alike are starting to make plans for the upcoming holiday weeks.
In the mountain states of Idaho, Utah and Colorado, milk production is steady and there is plenty of milk for processing. Milk intakes are long. Processing options in the northern parts of the region are somewhat limited, and as a result, milk loads are getting pushed to the south and into neighboring states. The western condensed skim market is stable going into the holidays. Because of increasing milk yields, condensed skim continues to be readily available in the dairy market. Most of the condensed skim is going into nonfat dry milk production. In the West, cream sales are moderate, with declining interest. Most cream based products for the holidays have been made and are being shipped out to customers. As so, there is more cream available in the market. Some of the cream is going to the churns.
Cream multiples for all usages are 1.10-1.28. Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.1000 - 1.2800