Fluid Milk and Cream - Western U.S. Report 33

Milk production has increased a bit in California. While Class III sales are up, Class I orders are mixed. Bottling orders have picked up in some areas as pipelines are being filled for the new school session. Milk offers are in good balance with overall demand. 

In Arizona, milk output is steady because the low level of humidity is helping keep dairy cows comfortable. Bottled milk requests are flat. Class II sales remain active. Processing plants are running slightly below capacities. Some milk is coming from other states to supplement      processing needs in Arizona. 

Class I milk demand has improved in New Mexico as educational      institutions have reopened their doors after the summer break. Milk production is close to last week's volumes. Supplies are moving to the different processing plants without any major issue. However, milk components have slightly declined in recent weeks. 

In the Pacific Northwest, milk production continues to fill most processing needs. Favorable weather has provided great cow comfort and milk intakes are strong. Bottling demand is steady with most school starts still a few weeks away. Manufacturing facilities are running at or near     capacity. 

Milk production in the mountain states of Idaho, Utah and Colorado is strong. While milk intakes are steady to lower in the southern parts of the region, milk output in Idaho has not let up much. So far, the summer weather has done little to suppress milk volumes. Manufacturing facilities are running at or near full capacity. Bottling for educational institutions has started with many public schools starting sessions in the next week. 

Condensed skim supplies are unchanged from last week. Drying schedules remain active. The cream market is still strong. Ice cream makers remain some of the principal cream buyers. Industry contacts report that more eastern and midwestern buyers are coming to the West in the quest for cream. Cream multiples are the same as a week ago.

     National Retail Report Dairy ± Fluid Milk Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 8/9/19 to 8/15/2019

     Half Gallon, All Fat Tests         Weighted Average Price
     National                    This Period   Last Week   Last Year
     Conventional                   $2.03        $2.27       $2.45
     Organic                        $4.07        $3.61       $3.89

     Regional (Conventional)      Wtd. Ave.       Low         High
     Hawaii                         $3.99        $3.99       $3.99
     South Central                  $1.81        $1.66       $1.89

     Regional (Organic)           Wtd. Ave.       Low         High
     Northwest                      $3.49        $3.49       $3.49
     Southwest                      $4.99        $4.99       $4.99

     Gallon, All Fat Tests              Weighted Average Price
     National                    This Period   Last Week   Last Year
     Conventional                   $2.79        $3.16       $3.33
     Organic                        $6.22        $5.11       $6.85

     Regional (Conventional)      Wtd. Ave.       Low         High
     Northwest                     $1.99         $1.99       $1.99
     Southwest                     $2.82         $2.69       $2.98

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.1600 - 1.3200

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