Fluid Milk and Cream - Western U.S.
Milk output in California is stable to up, along normal seasonal trends. Producers state that they have enough milk volumes to carry out their daily processing duties. Milk sales are going well within the state.
According to some contacts, Class IV demand will likely see an uptick in the coming weeks as milk orders for the holiday foods' preparation take place. Meanwhile, bottling milk demand hasn't changed much from last week.
Arizona farm milk production declined due to heavy rains at the beginning of the week. Inadequate road conditions caused a slowdown in milk pick up at dairy farms. Overall, milk volumes produced are reported lower than last year. Some Class IV milk moved to California for short-term drying. Class I intakes are uneven.
Milk production management is going well in New Mexico. The weather is seasonally favorable for the making of milk across the state. Therefore, outputs have increased a bit this week. Milk loads are being handled to the satisfaction of dairy farmers and producers despite this week and last week's repair and maintenance challenges.
Although Class I requests declined, overall milk sales are up. Milk production in the Pacific Northwest is generally climbing, however, manufacturers note farmers are still dealing with herd health issues as a result of the blizzard last month. Some cows that had frostbit teats are slow to recover, have taken extra care time, or have needed to be culled. Culls, mortalities, convalescence and several large farm sales have reduced milk intakes to some processors. While there is a dip in milk loads brought to the processing plants in the short term, there is still plenty of milk and cream for most processing needs. Furthermore, industry contacts expect milk volumes to recover quickly as warmer temperatures issue into the region. Milk bottling demand is lower due to educational institutions taking spring breaks.
Milk production in the mountain states of Idaho, Utah and Colorado is generally steady. However, Colorado is digging out from a blizzard that hit the region on Wednesday. While too early to tell what impacts are left in the storms wake, milk shipment delays are expected due to heavy snows and high winds. Milk intakes are mixed in the northern part of the region. Plenty of milk is available to meet most processing needs.
Condensed skim is in good supply throughout the West. Industry players expect the production of more condensed skim in the coming weeks as the spring flush causes more milk yield. Cream inventories are available and manageable. The processing of some pre-holiday dairy products is taking some cream away from the churns. Nonetheless, butter manufacturers can easily find the cream they need. Butter manufacturing remains active throughout the West.
Cream multiples are 1.05-1.18. National Retail Report Dairy ± Fluid Milk Summary Advertised Prices at Major Retail Supermarket Outlets ending during the period of 3/8/19 to 3/14/2019 Half Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Organic $3.61 $4.00 $3.48 Conventional $2.39 $2.31 $2.52 Regional (Conventional) Wtd. Ave. Low High Northwest $2.49 $1.99 $2.99 Southwest $2.09 $1.99 $2.24 Regional (Organic) Wtd. Ave. Low High Northwest n.a. n.a. n.a. Southwest $3.99 $3.99 $3.99 Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Organic $4.99 $5.51 $6.15 Conventional $2.70 $2.58 $3.02 Regional (Conventional) Wtd. Ave. Low High Northwest n.a. n.a. n.a. Southwest $2.56 $2.49 $2.69 Regional (Organic) Wtd. Ave. Low High Northwest n.a. n.a. n.a. Southwest n.a. n.a. n.a. Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.0500 - 1.1800