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

California milk production is steadily increasing. Temperatures remain favorable for cows’ wellbeing, giving a small boost to milk output levels. Fluid milk demand is at a normal level for this time of the year. Processors are able to keep up with derivative dairy products’ production schedules. There is also a good balance between the supplies and requests for milk.

In Arizona, milk output is slowly rising, but remains lower than that of last year. Class II demand is strong and is being used to fulfill the upcoming holiday needs. Bottling milk orders are steady. Some loads of milk are moving out of state. Balancing plants are running as usual. Overall, milk supplies and needs are balanced.

In New Mexico, adequate milk supplies are available for filling current needs. Overall, farm milk production is down this week. Class I and II sales are steady to a little down while Class III demand is growing. No surplus milk was reported as all the milk is being used within and out of the state.

Pacific Northwest milk production remains strong. In some pockets, milk handlers note a slight upturn in production due to favorable weather conditions and availability of good feedstocks. Manufacturers say they are not having any trouble keeping production schedules filled with milk. Bottling demand is steady.

In the mountain states of Idaho, Utah and Colorado, milk production is strong. Many manufacturers are running full production schedules and are not having any difficulties getting the milk needed for processing. Winter snow packs are starting to accumulate at elevations. The snows that will supply next year’s irrigation needs are generally above average in the southern part of the region and slightly below in the northern part, however there is a long winter ahead.

Condensed skim remains handy in the West as weather conditions are advantageous for more milk production. Condensed skim drying is ongoing. Currently, nonfat dry milk demand seems solid. Therefore, industry participants are waiting to see if the condensed skim market conditions will change. Western cream inventories are balanced.

More cream continues to be used for holiday dairy foods’ manufacturing. Steady loads of cream are moving to the churns.

Multipliers for all usages are ranging 1.10-1.28. Multiples Range - All Classes: 1.1000 - 1.2800

Secondary Sourced Information:

According to California Department of Food and Agriculture, October 2018 Class 1 sales in California totaled 52.3 million gallons, up 9.1 percent from last month, but down 2.8 percent from the previous year. From January through October 2018, Class 1 sales totaled 498.8 million gallons, down 3.4 percent from the comparable period in 2017. Milk pooled on the Pacific Northwest Order 124 totaled 810.2 million pounds in October 2018. Class I utilization accounted for 21.9 percent of producer milk. The uniform price was $15.77, up $0.33 from last month, but $0.26 below one year ago. Milk pooled on the Arizona Order 131 totaled 419.2 million pounds in October 2018. Class I utilization accounted for about 25.8 percent of producer milk. The uniform price was $16.22, up $0.37 from last month, but down $0.21 below one year ago.


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