Fluid Milk and Cream - Western U.S.

California milk production is inching up and dairy product manufacturers are staying busy, running their dryers near full performance levels. Overall, milk intakes are consistent with previous years' levels. The processing of the holiday dairy products is slowly ramping up.

Retail milk orders and bottled milk demand are unchanged from a week ago. 

In Arizona milk production is going to the satisfaction of dairy farmers. Milk supplies are adequate to fulfill all end users' needs. Dryers are kept at full or close to full manufacturing capacities. Butter churning remains active. With a few schools on spring break or just coming back from spring break, there is less milk moving into Class I accounts. 

The storms and high winds in some parts of New Mexico have caused some disruptions in milk processing toward the end of last week. This week, milk processing activities are back to normal aside from minor milk diversions from their original delivery destinations to other plants. Milk     production is generally flat to a bit up in the state. Class II and III sales are up, whereas Class I demand is somewhat lower. 

Pacific Northwest milk production is rebounding and increasing as spring issues into the region. Most processing facilities have plenty of     milk. Manufacturers are running near full capacity. A few processors, however, report intakes are off a bit due to herd dispersal sales or remaining herd health issues from the winter storms last month. Bottling demand is stable. 

Milk production in the mountain states of Idaho, Utah and Colorado is strong. Intakes are in balance with processing needs, and most milk can find a home nearby. Discounted milk loads are not widely available. 

Initial reports out of Colorado suggest that last weekśs winter storm did not result in significant losses of milk cows. However, due to blizzard conditions and closed roads, some farms missed milk pickups and had to dispose of several tanker loads of milk. 

There was a very little change to condensed skim availability throughout the West. With current strong milk output, condensed skim is in good supply. 

Cream supply is adequate is the West. According to industry contacts, ice cream production is set to soon ramp up; therefore, cream demand will      likely increase. 

Cream cheese manufacturing is also active ahead of the holiday. Currently,     cream sales are stable and great price discounts are not easily found. 

Cream multiples for all Classes are 1.05-1.18.

     National Retail Report Dairy ą Fluid Milk Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 3/15/19 to 3/21/2019

     Half Gallon, All Fat Tests                Weighted Average Price
     National                         This Period    Last Week     Last Yr
      Organic                           $4.09         $3.61          $3.76
      Conventional                      $2.29         $2.39          $2.56

     Regional (Conventional)          Wtd. Ave.        Low           High
      Northwest                         $2.69         $2.69          $2.69
      Southwest                         $1.99         $1.99          $1.99

     Regional (Organic)               Wtd. Ave.        Low           High
      Northwest                         $2.50         $2.50          $2.50
      Southwest                         $3.90         $3.49          $3.99

     Gallon, All Fat Tests                     Weighted Average Price
     National                         This Period    Last Week     Last Yr
      Organic                            n.a.         $4.99          $6.04
      Conventional                      $2.81         $2.70          $2.55

     Regional (Conventional)          Wtd. Ave.        Low           High
      Northwest                         $2.75         $2.50          $2.99
      Southwest                         $1.99         $1.99          $1.99

     Regional (Organic)               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                          n.a.          n.a.           n.a.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0500 - 1.1800


     Information for the period March 18 - 22, 2019, issued weekly

     Secondary Sourced Information:

     Milk pooled on the Pacific Northwest Order 124 totaled 604.4 million pounds in February 2019. Class I utilization accounted for 23.0 percent of producer milk. The uniform price was up $0.13 from last month, and $1.62 above the same month a year ago.

     Milk pooled on the Arizona Order 131 totaled 413.7 million pounds in February 2019. Class I utilization accounted for about 23.6 percent of producer milk. The uniform price was up $0.16 from last month, and $1.85 above the same month a year ago.

     The NASS Milk Production report noted February 2019 milk production in the 23 selected states was 16.0 billion pounds, 0.6 percent above a year ago. Milk cows in the 23 selected states totaled 8.72 million head, 47,000 head less than a year ago. The following table shows western states included in the report and the monthly milk production changes compared     to a year ago:

     February 2019 Milk Production, (USDA-NASS)

                   (Million Lb.)   % Change From
                                     1 Year Ago

     Arizona           402            - 3.4
     California       3235            + 0.1
     Colorado          365            + 8.3
     Idaho            1162            + 2.1
     New Mexico        634            - 3.9
     Oregon            205            + 7.3
     Utah              176            + 1.1
     Washington        509               -

     
     Ice Cream, Regular (Hard) ą Cumulative Production January - January
                       Cumulative Production   Percent Change
                           (1000 pounds)            from
     Report Month          2018        2019         2018
     January             54,718      52,994         -3.2

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