Fluid Milk and Cream - Western U.S. Report 2
In California, milk output is steady to a bit up. Manufacturing facilities are being operated at or close to full capacities. Some loads of milk are coming from other states for clearing. Class I sales have picked up as schools replenish their pipelines for the new semester.
In Arizona, milk supplies are abundant. Processing plants are full of in-state and out-of-state milk. Plant managers report receiving inquiries to bring out-of-state milk for clearing. However, they are not able to take all the loads because of limitation in processing capacities. Class I intakes have augmented compared to a week ago due to the reopening of educational institutions. Class II and III demands are stable. Milk output is strong.
In New Mexico, good weather conditions are helping maintain strong milk production. milk supplies are plentiful. Unexpected downtimes at a few processing facilities have caused an increase in milk holdovers. However, handlers are managing milk loads without any major problem. Class I, II, and III sales are all up. Balancing needs have diminished compared to last week.
Pacific Northwest milk production is very strong, and according to dairy contacts, well above projections. Farmers and cooperatives are trying to keep milk supplies under control, often feeding for milk components instead of volume. Manufacturers are running at or near full capacity. And while school milk bottling has returned to normal operations, it is enough to soak up only part of the available milk.
Milk production in the mountain states of Idaho, Utah, and Colorado, is seasonally strong. Many manufacturers are running near full capacity, but available milk in Idaho is outpacing processing capacity. Industry contacts report large volumes of Idaho milk is moving into Colorado, the southwestern states and the Midwest. Discounted milk loads are common in the region.
Western condensed skim drying is still active, but not as much as last week. Availability is high as milk production is strong. Mexican buyers are showing more interests in condensed skim.
Cream is widely available in the West. Cream churning is very active as it is the most effective way to clear loads in the midst of low sales. cream multiples for all Classes have improved at the bottom of the range when compared to last week numbers. NATIONAL RETAIL REPORT DAIRY – FLUID MILK SUMMARY Advertised Prices at Major Retail Supermarket Outlets ending during the period of 01/03/2020 to 01/09/2020 Half Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $1.60 $2.40 $2.46 Organic $3.85 $3.69 $3.91 Regional (Conventional) Wtd. Ave. Low High Northwest n.a. n.a. n.a. Southwest n.a. n.a. n.a. Regional (Organic) Wtd. Ave. Low High Northwest n.a. n.a. n.a. Southwest $3.67 $3.49 $3.99 Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $3.83 $2.93 $2.50 Organic $5.72 n.a. $6.18 Regional (Conventional) Wtd. Ave. Low High Northwest $1.99 $1.99 $1.99 Southwest $1.99 $1.99 $1.99 Regional (Organic) Wtd. Ave. Low High Northwest $5.00 $5.00 $5.00 Southwest $5.98 $5.98 $5.98 Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.0000 - 1.1800 Information for the period January 6 - 10, 2020, issued weekly Secondary Sourced Information: Dairy Products Report - Ice Cream, Regular, Hard Released January 6, 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: November 2018 and 2019 Monthly Production (1000 pounds) Percent Change from Total Cream, Regular (Hard) Nov Oct Nov Nov Oct Region 2018 2019 2019 2018 2019 United States 48,070 58,963 48,935 1.8 -17.0 Atlantic 12,314 13,281 12,518 1.7 -5.7 Pennsylvania 3,585 2,550 3,445 -3.9 35.1 Central 26,981 33,499 26,156 -3.1 -21.9 Missouri 2,243 2,786 2,237 -0.3 -19.7 Ohio 1,935 2,412 1,862 -3.8 -22.8 West 8,775 12,183 10,261 16.9 -15.8 California 3,684 6,720 5,435 47.5 -19.1 Oregon 997 1,117 1,015 1.8 -9.1 Utah 2,096 1,901 1,622 -22.6 -14.7 Ice Cream, Regular (Hard) – Cumulative Production January - November Cumulative Production Percent Change (1000 pounds) from Report Month 2018 2019 2018 November 674,677 660,926 -2.0