Fluid Milk and Cream - Western U.S. Report 37

In California, the weather continues to be warm, reaching the three-digit numbers at times. Milk production has been stable to slightly down. Although milk loads are enough to fulfill day to day processing obligations, there are not much left for spot sales. Class I milk requests are unchanged from a week ago. In Arizona, milk yield is steady. Milk holdovers increased as the result of the closure of several manufacturing plants for the Labor Day holiday. Class I demands are steady. USDA announced last week that it will extend the school meal program across the U.S. from the end of September to December 31. The program, which usually operates during the summer months, started early this year because of the COVID-19 pandemic. The extension of the program will likely help clear milk.

Milk production is following its usual course in New Mexico. Surplus milk volumes slightly increased this week. Class I and II demands have declined, but Class III sales are trending up. Annual maintenance projects at a few manufacturing facilities have caused a slow down in their processing schedules. Nonetheless, other plant managers took additional loads to help clear milk loads.

Pacific Northwest milk production is strong. Manufacturers are not having any trouble getting the milk needed for processing. Bottling demand is steady. Drought conditions and wildfires are creating some concerns within the region but have not yet affected dairy production much. Winter snows will be crucial to recharging water supplies for next year’s cropping season.

Mountain state milk production in Idaho, Utah, and Colorado, is strong and steady. A few discounted loads of milk remain available in Idaho at $4 under Class IV. Most manufacturers are running at or near full capacity to keep up with milk supplies. In the northern part of the region, adequate rainfall has resulted in good volumes of forages and water reservoir levels going into the fall. However, drought conditions, wildfires and a huge temperature swing resulting in an early snowfall have challenged farmers in some areas within the southern part of the region.

During this holiday week, condensed skim and cream supplies both increased. Nonfat dry milk and butter plants were running full as they manage to keep holdovers under control. Ice cream makers have diminished their cream intakes this week. Cream multiples for all Class are a bit down on both sides of the range Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.0500 - 1.2500 Information for the period September 7 - 11, 2020, issued weekly Secondary Sourced Information: DAIRY PRODUCTS REPORT - ICE CREAM, REGULAR, HARD Released September 3, 2020, 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: July 2019 and 2020 Monthly Production (1000 Gallons)

Percent Change from: Total Cream, Regular (Hard) July June July July June Region 2019 2020 2020 2019 2020 United States 64,846 71,841 71,064 9.6 -1.1 Atlantic 14,478 14,421 15,669 8.2 8.7 Pennsylvania 3,913 3,528 3,860 -1.4 9.4 Central 39,155 44,456 42,311 8.1 -4.8 Missouri 2,801 2,877 2,760 -1.5 -4.1 Ohio 2,874 2,885 2,898 0.8 0.5 West 11,213 12,964 13,084 16.7 0.9 California 5,790 7,090 6,808 17.6 -4.0 Oregon 1,398 1,582 1,697 21.4 7.3 Utah 1,671 2,288 2,270 35.8 -0.8 Ice Cream, Regular (Hard) – Cumulative Production: January - July Cumulative Production Percent Change (1000 Gallons) from Report Month 2019 2020 2019 July 434,251 438,404 1.0

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