Fluid Milk and Cream - Western U.S.

Bottled milk sales are steady to up due to educational institutions preparing to reopen in the coming weeks for the new school year.

In California, triple-digit temperatures are putting more stress on cows’ well-being and contributing to a reduction in milk output and component levels.

Some contacts report not being able to get all the milk they need due to limited spot load availability. Milk handlers say they are looking into opportunities to bring milk from other areas to satisfy current needs for milk as some plant operations are running 7-day schedules.

Bottled milk sales are steady to up due to educational institutions preparing to reopen in the coming weeks for the new school year.

In Arizona, farm milk yield is still decreasing in that the weather has remained uncomfortable for dairy cows. Higher temperatures are expected to continue for some time.

Processors report that current milk volumes are in good balance with processing requests. As manufacturing activities slow down a little bit, plant operators are taking care of maintenance/repair workloads as well as helping process excess loads of milk from out-of-state plants.

Class I demand is unchanged from last week. Milk production is at seasonal levels in New Mexico. Demand for Class I and II are both down, but Class III sales are steady to up.

Milk handlers say that issues at some manufacturing facilities, coupled with repairs and maintenance schedules, have caused an upsurge in milk holdovers.

Nonetheless, holdovers are being shipped to several out of state plants to find new homes.

Milk production in the Pacific Northwest continues to inch lower, pasted by the heat. Aside from the coast, high temperatures have been in the 90s and in triple digits for much of the last several weeks.

Dairy contacts say milk intakes and components are both lower as a result. However, manufacturers have not reported any difficulty in getting the milk needed for processing. Bottling demand is steady and Class II manufacturers continue to pull heavy volumes of milk and cream.

In the mountain states of Colorado, Utah and Idaho, milk supplies are still long. However, the recent heat has been able to cut into the abundance, possibly drying up at least some of the excess.

While a few loads are moving into surrounding states, much of the milk is finding a home near the farm.

Manufacturers have plenty of milk for operations. Western condensed skim supplies are tight as milk volumes in many states have decreased. In some areas, contracts can not be fulfilled as planned.

Western cream sales to ice cream and cheese makers have increased. According to some contacts, there have been some delays in cream delivery dates due to limited availability.

Many sellers have their cream committed before it becomes available. Several butter makers have stopped the churning activities and are selling cream.

All Classes cream multiples are 1.09-1.32. However, some customers offered to purchase cream at multiples up to 1.35 but couldn’t find any loads.

According to California Department of Food and Agriculture, June 2018 pool receipts of milk in the state total 3.11 billion pounds. This is 0.1 percent lower compared to the same month a year ago. From January through June 2018, receipts are 0.8 percent higher from the comparable period in 2017. The Value at Test price is $15.41, $.12 lower than the previous month, and $1.06 below a year ago.

The percentage of receipts used in Class 1 products is 11.73 percent. The June quota price is $15.94, and the over quota price is $14.24. These prices are $.01 above last month, but $1.14 lower from a year ago.

The NASS Milk Production report noted June 2018 milk production in the 23 selected states was 17.2 billion pounds, 1.3 percent above a year ago. Milk cows in the 23 selected states totaled 8.75 million head, 12,000 head more than a year ago.

From: Capital Press

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