Fluid Milk and Cream - Western U.S. Report 1
California milk production is stable. Despite busy processing schedules, milk is being cleared without any major incident. Class II and bottled milk requests remain low, but demands are in line with projections. Processing plants that are open during the holiday are being run at full capacities to ensure that all milk loads find a home.
Milk production in Arizona is unchanged from the previous week. However, the total volumes produced are lower compared to last year at this time. There remains more than enough milk for processing, especially with the decline in Class I intakes from schools' accounts and the schedule changes at different plants. Some Class IV processors were able to take in additional out-of-state milk loads to accommodate the holiday clearing needs. The churns that were turned on last week are still actively being used for cream load management.
In New Mexico, drying and churning are helping keep milk and cream loads under control. Orders for next week delivery are up as schools are expected to reopen soon. Meanwhile, this week intakes are flat. Farm milk yields are at seasonal levels. Overall, the market tone is nothing short of expectations.
Pacific Northwest milk production is steady. School milk bottling is still at the mid-winter low tide. But most manufacturers are running regular weekly schedules, and intakes are balanced with processing needs.
Milk production in the mountain states of Idaho, Utah, and Colorado, is steady to higher. Milk flows are getting back to normal following the holiday last week, with fewer disruptions for the New Year holiday week. However, discounted milk loads are still common in parts of the region. A lot of condensed skim is clearing through the dryers this week.
Although availability has picked up, condensed skim continues to be efficiently processed. The market is expected to return to normal activities/processing next week. Cream offers are plenteous in the western dairy market as many plants are closed for either a day or multiple days at a time during the holiday week.
As the result, cream churning is active wherever there is extra room. Cream multiples for all Classes are still low at last weeks' price points. NATIONAL RETAIL REPORT DAIRY – FLUID MILK SUMMARY Advertised Prices at Major Retail Supermarket Outlets ending during the period of 12/27/2019 to 1/2/2020 Half Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $2.40 $1.89 $1.18 Organic $3.69 $3.99 $3.88 Regional (Conventional) Wtd. Ave. Low High Northwest $0.99 $0.99 $0.99 Regional (Organic) Wtd. Ave. Low High Northwest $2.99 $2.99 $2.99 Southwest $3.83 $3.50 $3.98 Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $2.93 $2.98 $2.43 Organic n.a. $5.69 $4.99 Regional (Conventional) Wtd. Ave. Low High Southwest $2.99 $2.99 $2.99 Western U.S., F.O.B. Cream Multiples Range - All Classes: 0.9500 - 1.1800