Fluid Milk and Cream - Western U.S.
Milk output throughout California is mostly stable and milk processing levels are unchanged from a week ago. Class I sales are steady. California hay quality is being affected by unsettled weather outcomes. In the Imperial Valley, the first cutting of alfalfa hay is scheduled to take place in the coming two to three weeks, and farmers expect stronger export demand. Demand from Saudi Arabia will likely increase because of restrictions on irrigation water usage for alfalfa farms in this country. Dairy farmers in California are waiting to see how the hay prices will change in the coming months.
Milk output in Arizona is flat to increasing as comfortable weather conditions are giving an extra boost to cows productivity. Processing facility managers are running their plants at full or near full capacity and are content with the loads of milk available to them. Bottled milk demand has not much fluctuated from last weekśs volumes. Class VI usages remain strong as producers opt to make more butter instead selling their cream at a discount.
Although milk production is lower in New Mexico this week, milk loads available to buyers are higher than usual. This is because some Class III customers reduced their pre-ordered volumes during the week. Handlers were quick to find ways to push more milk to other Class III processing facilities to clear out some loads. Class I and II orders are both down.
Milk production in the Pacific Northwest is steady. Areas of Washington and Oregon had snowfall early in the week and may get more accumulation this weekend. While snow and colder temperatures tend to stymie milk production somewhat, the moisture is welcome in the region that has been dry through much of the winter. Bottling demand continues at typical seasonal patterns.
In the mountain states of Idaho, Utah and Colorado, milk production is steady. Manufacturers report intakes are in generally good balance with processing needs and there are only a few discounted loads getting pushed into neighboring states. Industry contacts say some cooperatives are projecting milk needs ahead of the spring flush and discussing with members the need to curtail milk production.
Cream availability remains strong in the West. Nonetheless, according to a few market participants, more cream is moving through contracts and the volumes of cream in the spot market have slightly decreased.
Butter processors are still taking advantage of favorable cream prices to churn more butter. Cream multipliers are 1.00-1.17, unchanged from a week ago. National Retail Report Dairy ą Fluid Milk Summary Advertised Prices at Major Retail Supermarket Outlets ending during the period of 2/01/2019 to 2/07/2019 Half Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Organic $3.63 $3.98 $3.96 Conventional $2.46 $1.00 $1.27 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 $3.99 $3.99 $3.99 Southwest $3.33 $2.49 $3.99 Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Organic $6.01 $6.85 n.a. Conventional $2.65 $2.65 $2.88 Regional (Conventional) Wtd. Ave. Low High Northwest $1.99 $1.99 $1.99 Southwest $2.49 $2.49 $2.49 Regional (Organic) Wtd. Ave. Low High Northwest $5.00 $5.00 $5.00 Southwest n.a. n.a. n.a. Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.0000 - 1.1700 Information for the period February 4 - 8, 2019, issued weekly Ice Cream, Regular (Hard) ą Cumulative Production January - November Cumulative Production Percent Change (1000 pounds) from Report Month 2017 2018 2017 November 716,142 689,157 -3.8