Fluid Milk and Cream - Western U.S. Dairy Report
(USDA Market News)
In California, farm milk production is steady to slightly increasing. The lack of adequate haulers and truckers is disrupting the handling of milk loads. Milk volumes moving to Class 1 continue to be significant as schools intakes remain high.
As the activities of one plant ceased this week, a few more spot loads of milk are available for sales. Milk handlers are managing the extra loads to other balancing facilities within the state.
Some Arizona condensed skim is moving to California and Texas to find additional processing room as a few plants in Arizona reduce their daily activities to take care of repair and maintenance issues.
In addition, manufacturing variations at another plant are adding handling stress as milk shippers look for ways to temporarily redistribute milk loads.
However, no fluid milk is moving out of state at the moment.
In general, Arizona milk output is bouncing back up slowly. Daytime temperatures remain in the upper 100s while nights are progressively getting cooler. Hence, milk output is expected to keep increasing in the forthcoming months. Bottling milk sales are steady this week.
Cream demand for butter churning hasn’t changed much despite higher cream availability.
New Mexico farm milk production is dwindling by a few loads daily. In despite of that, milk volumes are in good balance with current demand. Class I orders are curtailing whereas Class II and III sales are trending higher.
Pacific Northwest milk production is down slightly. Dairy contacts report cows are doing well with the comfortable temperatures and good forage supplies. Milk sales are off slightly, but that is more a result of the school milk pipeline getting filled.
Stronger retail milk sales have helped clear some of the extra milk available in the region.
Industry contacts say milk intakes are in balance with processing needs.
Milk production in the mountain states of Idaho, Utah and Colorado remains strong. Manufacturers are not having any trouble getting the milk needed. Industry contacts say intakes are in fairly good balance with processing needs and the number of distressed loads has seemed to diminish.
Most milk is finding a home within the immediate state or area, with only the occasional hiccup at a few processing facilities forcing a shift of milk loads. Western condensed skim market is stable. Not many changes in stocks and demand were noted this week.
According to industry connections, the cream market seems significantly lower in the West. However, in some areas plant managers report that demand for cream is still good. Cream stock offerings are growing. Certain processing plants have increased butter manufacturing while others are taking extra loads of cream for the manufacturing of the upcoming holiday dairy goods. Cream multiples for all Classes are 1.10-1.27.