Fluid Milk and Cream - Western U.S. Report 19

in California, milk yield is still solid. Milk volumes are moving to processing plants without any major issue. With the closing of schools for the rest of the school year, bottled milk intakes are mostly unchanged. Processing schedules are very active, but spot loads of milk are not as available as in the previous week. The market continues to recoup one step at a time from the coronavirus crisis. 

Arizona milk output is steady to dropping. Milk supplies are still above requests, but handlers report that they can better manage      current loads as they are less compared to previous weeks. Class II intakes are higher whereas Class I demands are unchanged from last week. Class IV processing remains active. 

New Mexico milk output is steady to declining. Demands and supplies of milk are balancing out as industry participants find different ways to manage the milk that is not being used by schools. Class I sales are unchanged, whereas Class II demands are trending up. Processing plants are running at full capacities to ensure that all milk volumes are being efficiently used. Overall, the market tone is stabilizing. 

Milk production in the Pacific Northwest is finding a new balance. While favorable weather is promoting cow comfort and milk production, early efforts by manufacturers and farmers helped keep milk output from     overwhelming processing facilities. Many of the manufacturing plants are working at or near full capacity. As bottling demand has pulled back from the peak and ice cream manufacturing has ramped up, cream supplies are firming. There is now more stability in cream markets.

Mountain state (Idaho, Utah, and Colorado) milk production is strong and growing seasonally. The abundance of milk has been a challenge all spring. While milk is finding homes in the southern part of the region, in the northern part of the region, milk supplies surpass the    available processing space. Some milk is getting spurned by processors or discounted to prices that only cover freight. In this lorn situation, some milk handlers and farmers are feeling considerable financial stress. 

Condensed skim is available to all buyers in the West. Supplies, although abundant, are manageable. Drying schedules are ongoing. 

The cream market is mixed in the West. While some processors are seeing increased intakes from Class II, others report that they still have a lot of cream going to churns. Cream supplies vary from one seller to another. Cream multiples for all Classes have a wider range this week.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               0.4500 - 1.1000

     Information for the period May 4 - 8, 2020, issued weekly

     Secondary Sourced Information:

     Dairy Products Report - Ice Cream, Regular, Hard
Released May 5, 2019, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA).

     Ice Cream, Regular (Hard) Production – States and United States: March 2019 and 2020 
                     Monthly Production (1000 Gallons)    
                                       Percent Change from
                                       Total Cream, Regular (Hard)                            
                        March    Feb     March    March    Feb
                        2019     2020    2020     2019     2020
     United States     65,957   52,484   64,026   -2.9     22.0

     Atlantic          14,258   11,984   13,812   -3.1     15.3
     Pennsylvania      3,351     3,419   3,294    -1.7     -3.7
     Central           40,062    31,759  39,176   -2.2     23.4
     Missouri          3,403     2,907   3,222    -5.3     10.8
     Ohio              2,011     1,839   2,111     5.0     14.8

     West             11,637     8,741  11,038    -5.1     26.3
     California        6,196     4,312   5,491    -11.4    27.3
     Oregon            1,307     1,017   1,422     8.8     39.8
     Utah              1,927     1,627   2,125     10.3    30.6

     Ice Cream, Regular (Hard) – Cumulative Production: January-March
                                Cumulative Production  Percent Change
                                        (1000 Gallons)     from
     Report Month                       2019     2020      2019
     March                            172,390   168,667    -2.2

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