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Fluid Milk and Cream - Western U.S. Report 41

In the West, milk supplies are generally plentiful, and California is no exception. This week, milk output has grown in California, but remains mostly in good balance with what the industry needs. Class I intakes are unchanged from a week ago. 
The Arizona milk market is flat, with sufficient volumes available to producers within the state. Milk yield is level to slightly up as cooler weather in the mornings is keeping cows comfortable. Manufacturers      report not needing to bring any milk from out-of-state. Class II requests are at the same levels as in the prior week. Class I sales are mostly stable. 
In New Mexico, milk production is steady. With several schools either on fall break or about to close for the break, Class I demand has declined. Class II sales are also trending lower. 
Pacific Northwest milk production is strong. Milk intakes are keeping most manufacturing facilities full. Bottling demand is steady. Industry contacts say there is plenty of cream and multiples have eased back somewhat. 
Milk production in the mountain states of Idaho, Utah and Colorado is flat to seasonally lower. However, some farms continue to add cows into the milking herd. As a result, milk intakes are keeping manufacturers running at or near full capacity. Small disruptions in processing continue to cause excess loads of milk. Some processors are picking these loads up at $4.75 under Class IV. 
The condensed skim market is fairly balanced. A lot of the supplies are moving to dryers for nonfat dry milk production. 
This week, the western region is swimming in a pool of cream. Cream multiples for all Classes have declined on both edges of the range. Ice cream buyers continue to decrease their intakes. Butter churning activities are a bit more active.

     National Retail Report Dairy ± Fluid Milk Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 10/04/19 to 10/10/2019

     Half Gallon, All Fat Tests         Weighted Average Price
     National                    This Period   Last Week   Last Year
     Conventional                   $2.35        $2.15       $2.13
     Organic                        $3.48        $3.99       $3.67

     Regional (Conventional)      Wtd. Ave.       Low         High
     Northwest                      $2.69        $2.69       $2.69

     Regional (Organic)           Wtd. Ave.       Low         High
     Northwest                      $4.12        $2.99       $4.39
     Southwest                      $3.09        $2.99       $3.50

     Gallon, All Fat Tests              Weighted Average Price
     National                    This Period   Last Week   Last Year
     Conventional                   $3.47        $2.54       $3.27
     Organic                        $5.70        $5.81       $6.99

     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                      $5.36        $5.00       $5.99

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0500 - 1.2300


     Information for the period October 7 - 11, 2019, issued weekly

     Secondary Sourced Information:

     Dairy Products Report - Ice Cream, Regular, Hard
     Released October 3, 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: August 2018 and 2019
Monthly Production (1000 pounds)                       Percent Change from
Total Cream, Regular (Hard)     August    July    August   August   July
     Region                      2018     2019      2019    2018   2019
     United States              70,111   65,958    65,650   -6.4   -0.5

     Atlantic                   15,368   14,267    14,836   -3.5   4.0
       Pennsylvania             3,531    3,620     3,564     0.9  -1.5

     Central                    41,364   39,285    37,602   -9.1  -4.3
       Missouri                 3,397    2,765     3,345    -1.5  21.0
       Ohio                     2,810    2,815     2,539    -9.6  -9.8

     West                       13,379   12,406    13,212   -1.2   6.5
       California                7,264    6,968     7,937    9.3   13.9
       Oregon                    1,282    1,408     1,226   -4.4  -12.9
       Utah                      2,736    1,670     1,726  -36.9   3.4

     Ice Cream, Regular (Hard) ± Cumulative Production January - August
                                   Cumulative Production  Percent Change
                                        (1000 pounds)        from
     Report Month                       2018     2019        2018
     August                          509,396  497,475        -2.3

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