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Fluid Milk and Cream - Western U.S. Report 10

In California, milk production is abundant, surpassing industry players' expectations. Although, processors are running plants at full capacities, some of them had to look for outside help to make sure all the milk is cleared. Class I requests are steady, whereas Class II demands are flat to a bit up.


In Arizona, milk output is still up, and it is anticipated that it will continue to increase up to the spring flush. Bottled milk demands from educational institutions haven't changed much from the prior week. Processing plants are full of milk. Plant managers are taking discounted out-of-state milk whenever possible.


In New Mexico, weather conditions have been favorable for milk production and deliveries. Milk supplies are plentiful. Holdovers are manageable despite minor maintenance projects at some processing facilities. More milk went to balancing plants this week compared to the previous week. Class I and III sales are higher, whereas Class II demands are trending down.

Milk production in the Pacific Northwest is robust. Manufacturers have plenty of milk for processing. Ice cream manufacturers are starting to slowly increase their cream intakes in preparation for the upcoming spring and summer. Bottling demand is steady.


In the mountain states of Idaho, Utah, and Colorado, milk intakes are still above processing capacity. A mild winter, plenty of forages, and increases in the milking herd are keeping the milk line filled. Heavily discounted spot milk loads are common. There are reports of loads getting shipped for slightly more than freight costs and of some loads being discarded. Many manufacturing facilities are already full, and any planned or unplanned maintenance only exacerbates the challenges of placing milk loads.


There is a lot of condensed skim in the western dairy market. As the result, more continues to be moved to other regions to help with supply management.


Spot cream is plenteous in the West. Processors are looking for additional sale outlets within and outside the region. Cream continues to be moved to butter plants for churning. Cream multiples for all Classes are a bit up at the top of the range. NATIONAL RETAIL REPORT DAIRY – FLUID MILK SUMMARY Advertised Prices at Major Retail Supermarket Outlets ending during the period of 02/28/2020 to 03/05/2020 Half Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $1.41 $2.88 $2.31 Organic $4.24 $3.81 $4.00 Regional (Conventional) Wtd. Ave. Low High Northwest $1.20 $0.99 $1.39 Regional (Organic) Wtd. Ave. Low High Southwest $3.99 $3.99 $3.99 Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $2.99 $2.96 $2.58 Organic $6.13 $6.48 $5.51 Regional (Conventional) Wtd. Ave. Low High Southwest $2.99 $2.99 $2.99 Regional (Organic) Wtd. Ave. Low High Northwest $5.00 $5.00 $5.00 Southwest $5.99 $5.99 $5.99 Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.0000 - 1.1700 Information for the period March 2 - 6, 2020, issued weekly Secondary Sourced Information: Dairy Products Report - Ice Cream, Regular, Hard Released March 4, 2019, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). Ice Cream, Regular (Hard) Production – States and United States: January 2019 and 2020 Monthly Production (1000 Gallons) Percent Change from Total Cream, Regular (Hard) Jan Dec Jan Jan Dec Region 2019 2019 2020 2019 2019 United States 53,551 47,318 51,731 -3.4 9.3 Atlantic 12,815 10,722 12,070 -5.8 12.6 Pennsylvania 2,697 3,325 2,969 10.1 -10.7 Central 31,749 29,825 30,706 -3.3 3.0 Missouri 1,852 1,424 1,847 -0.3 29.7 Ohio 2,138 1,765 2,013 -5.8 14.1 West 8,987 6,771 8,955 -0.4 32.3 California 4,390 3,155 4,767 8.6 51.1 Oregon 1,258 1,148 1,167 -7.2 1.7




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