Fluid Milk and Cream - Western U.S. Dairy Report
Milk output in California is holding steady with recent weeks. Components’ recovery is ahead of milk volumes, giving a slight bump to butterfat and protein-based products processing.
Compared to last week, this week there is an unchanged request for Class 1 accounts.
Handlers are still encountering hauling issues. Nonetheless, they are finding ways to juggle milk around to the manufacturing plants.
Milk supplies are enough to meet all processing requirements.
Arizona farm milk production levels are gradually increasing, reflective of better weather conditions for milk cows across the state. Handlers are moving milk around to meet current industry needs.
Processing plants have sufficient capacity to handle all the milk supplies they are receiving. The Class I market is pulling stable loads of milk.
In New Mexico, milk production is steady to slightly up. The Southeast region continues to take more loads from New Mexico despite hauling limitations and expensive prices.
Demand for Class III milk has noticeably increased this week. Class II usage is trending up whereas Class I intakes are down. Milk supplies are in good balance with demand.
Pacific Northwest milk production is steady. And current weather patterns are comfortable for cows. Intakes and needs are balanced, as there continues to be a steady pull from bottling and dairy product manufacturing. Industry contacts say there is plenty of milk to satisfy all takers.
Milk production in the mountain states of Idaho, Utah and Colorado is up a bit this week. Cow friendly fall weather is keeping milk output strong. Industry contacts also say some farms have added cows.
So far, intakes and processing needs are in good balance. Milk acceptation within the region is as expected, with only the occasional orphaned load due to plant maintenance or small shifts in processor demand pushing milk into neighboring states.
The condensed skim market is steady in the West. Most loads are being used for nonfat dry milk manufacturing.
Cream loads’ availability has tightened somewhat in parts of the West since the production of holiday dairy foods hit the ignition switch. Inventories of cream are decreasing, although prices are still steady.
However, cream remains accessible for all western production needs. Restricted truck accessibility is curbing the ability to move cream from one region to another. Cream multiples are 1.10 to 1.28.
Average Price, Half Gallon, All Fat Tests