Fluid Milk and Cream - Western U.S. Report 11

California milk component levels are a bit down. Milk availability continues to be up. Milk production is steady to up. Bottled milk sales are steady. Class II demand is increasing. Manufacturing plants continue to run at full capacities.

In Arizona, milk output is high. Schools are currently closed for spring break. Therefore, Class I intakes are lower. Repair projects at one plant are causing an increase in cream loads in the region and forcing a few processors to look for help with cream clearing in Texas. Arizona processors are being offered out-of-state milk, condensed skim, and cream. However, they are only helping whenever possible. The production of some Class II dairy products has started to increase in light of the upcoming holiday.

In New Mexico, milk supplies are up, whereas sales are down. Class I and II sales have declined, but Class II requests are steady to slightly up. With the spring break in some areas, several schools have not ordered milk this week. More milk was moved to balancing plants for clearing. The weather continues to favor the production of milk in New Mexico.

Milk production in the Pacific Northwest is strong. Manufacturers report milk intakes are already keeping the plants full without taking in additional loads of milk. Bottling demand has decreased due to school closings. Some educational institutions are on spring break. Some have closed in efforts to control the spread of the coronavirus. In either case, the reduced bottling demand is creating new challenges to place and process milk.

In the mountain states of Idaho, Utah, and Colorado, milk intakes are still above processing capacity. Some processors have implemented base programs to try to control the milk supply. A few industry contacts think these efforts have helped flatten the volume of milk intakes. However, discounted milk at $7 below Class IV is common in Idaho. In addition, there are rumors of more milk being discarded within the state.

Condensed skim processing is very active in the western dairy market. Some loads are being moved from California to Arizona for processing.

The cream market is generally steady to a bit balanced in the West. Supplies have tightened up in some areas. Unlike last week, several processors are not receiving unsolicited cream offers this week. Most of the cream loads are finding homes. Cream multiples have moved up by .0200 this week. NATIONAL RETAIL REPORT DAIRY – FLUID MILK SUMMARY Advertised Prices at Major Retail Supermarket Outlets ending during the period of 03/06/2020 to 03/12/2020 Half Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $2.64 $1.41 $2.39 Organic $4.24 $4.24 $3.61 Regional (Organic) Wtd. Ave. Low High Southwest $2.99 $2.99 $2.99 Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $3.63 $2.99 $2.70 Organic $5.40 $6.13 $4.99 Regional (Conventional) Wtd. Ave. Low High Northwest $1.99 $1.99 $1.99 Southwest $2.98 $2.98 $2.98 Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.0000 - 1.1900

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