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

(USDA Market News)

Sept. 27

Milk production in California is flat to increasing. Supplies are sufficient to meet current demand. Fluid milk demand is generally unchanged from the previous week.

Many plant operators are preparing for the new California Milk Marketing order and are keeping up to date with all the requirements for the transition. However, milk production and distribution are not much affected by this procedure.

Arizona milk output is flat this week. Evening temperatures are cooler while daytime temperatures remain in the high 90s. This is helping cows to recharge partly in the night and maintain good milk yield.

Milk components have also started to improve. Handlers have been requesting more milk for sales to their customers.

Class I and II demand is steady. A steady flow of cream is going to the churns. Some reports suggest that more cream is moving from Arizona to Texas this week.

Milk output in New Mexico is increasing. A significant upsurge has been noticed on Class I milk intakes as well.

However, some of the requests are coming from the Southeast region. Transportation of milk to the southeast continues to be an issue due to restricted hauling capacity. Class II sales are down in New Mexico while Class III sales are up. Manufacturing facilities are running close to full capacity. In general, milk demand and supply are in good balance.

Milk production in the Pacific Northwest is steady. Milk handlers report strong demand for loads of milk as manufacturers run at or near full capacity. Bottling demand is steady and has hit the mid-season form as most educational institutions are well into their fall terms.

Most milk loads are finding homes within the region. Milk intakes are in good balance with processing needs.

In the mountain states of Idaho, Utah and Colorado, milk production is following typical seasonal patterns. Manufacturers are running heavily, and intakes are in relatively good balance with production runs. Most milk is finding a home within the immediate area.

Milk handlers say there isn’t much, if any, milk coming into the region from surrounding states. However, maintenance, repairs or fluctuations in sales have pushed some milk into neighboring states.

Western condensed skim stocks are in equilibrium with sales. Some loads are moving across state lines for processing as repair and maintenance matters limit processing capacities in some areas.

Cream demand hasn’t changed much in the western region. Inventories are steady to slightly less compared to last week. Certain market participants state that fewer spot loads of cream are available for butter churning, but contracted loads are moving to the churns as planned. Cream multipliers for all usages are 1.10-1.28.

According to California Department of Food and Agriculture, August 2018 pool receipts of milk in the state total 3.10 billion pounds. This is 0.8 percent higher compared to the same month a year ago.

From January through August 2018, receipts are 0.3 percent higher from the comparable period in 2017. The Value at Test price is $15.55, $.61 higher than the previous month, but $1.80 below a year ago. The percentage of receipts used in Class 1 products is 13.65 percent. The August quota price is $16.13, and the over quota price is $14.43.

These prices are $.56 above last month, but $1.78 lower from a year ago.

Milk pooled on the Arizona Order 131 totaled 402.2 million pounds in August 2018. Class I utilization accounted for about 26.5 percent of producer milk. The uniform price was $15.32, up $0.29 from last month, but down $2.08 below one year ago.

Milk pooled on the Pacific Northwest Order 124 totaled 636.0 million pounds in August 2018. Class I utilization accounted for 24.0 percent of producer milk. The uniform price was $15.07, up $0.34 from last month, but $1.98 below one year ago.


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