Fluid Milk and Cream - Western U.S. Report 29
Class I orders are down in southern California, but up in the northern part of the state. The declines in sales were higher than the increase, bringing the overall bottled milk sales down in California. Class III demand has decreased also. Milk output is steady to trending lower, but supplies are available for spot needs. Some buyers are taking additional loads above their usual intake volumes. Nonetheless, there have been some outside sales to help with milk balancing.
In Arizona, although fluid milk output is still declining, the butterfat in the milk is going up. Bottled milk and Class II sales are steady to trending up in order to fulfill local milk requests and ice cream demand. Manufacturers are helping balance out of state milk as they have processing spaces available.
In New Mexico, balancing milk volumes have declined along with the decrease in milk production. Dryers for nonfat dry milk are running at slower paces. Class I milk intakes are declining, whereas Class II and III milk requests are climbing. Ice cream manufacturers are ramping up their production schedules as temperatures increase in the state and lead to more requests for ice cream.
Pacific Northwest milk production continues to surpass expectations. So far, the region has been able to avoid any torrid heat wave. Industry contacts say moderate weather along the coast has provided great cow comfort, and seasonally mild temperatures inland have helped dairy farms produce record amounts of milk. Bottling demand is steady, and manufacturers say they are at or near full capacity.
Milk production in the mountain states of Idaho, Utah and Colorado may be leveling off, but at peak output. Milk handlers suggest manufacturing facilities are at capacity. Some milk is flowing into auxiliary markets, but at discounts at $4.75 below Class IV. In addition, some contacts speculate that there may be some milk that is being discarded. While the dairy industry looks for ways to utilize its abundant milk supply, one small step that may help the industry do good and feed people is through a donation of a refrigerated truck to a regional foodbank. The truck can deliver and store 800 gallons of fresh milk for Idaho's food insecure residents.
Condensed skim is pricier in some parts of the West. Supplies are stable to a bit down. Cream demand isn't heating up as quickly as the weather at some western localities. Although sales remain active, some buyers are limiting their purchases that are above their normal booking volumes. Spot supplies are tight to balanced.
More cream continues to channel to ice cream production to the detriment of butter. Cream multiples for all Classes are steady on the range. National Retail Report Dairy ą Fluid Milk Summary Advertised Prices at Major Retail Supermarket Outlets ending during the period of 7/12/19 to 7/18/2019 Half Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $2.17 $1.71 $2.60 Organic $3.82 $4.33 $3.70 Regional (Organic) Wtd. Ave. Low High Northwest $3.19 $2.50 $3.49 Southwest $3.78 $2.99 $4.99 Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $2.69 $1.95 $3.06 Organic $6.35 $5.58 n.a. Regional (Conventional) Wtd. Ave. Low High Northwest $2.44 $1.99 $2.99 Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.1500 - 1.3100 Information for the period July 15 - 19, 2019, issued weekly Secondary Sourced Information: Milk pooled on the Pacific Northwest Order 124 totaled 761.5 million pounds in June 2019. Class I utilization accounted for 16.7 percent of producer milk. The uniform price was up $0.32 from last month, and $1.47 above the same month a year ago. Milk pooled on the Arizona Order 131 totaled 414.0 million pounds in June 2019. Class I utilization accounted for about 22.1 percent of producer milk. The uniform price was up $0.38 from last month, and $1.62 above the same month a year ago.