Fluid Milk and Cream - Western U.S. Report 41
In the West, milk supplies are generally plentiful, and California is no exception. This week, milk output has grown in California, but remains mostly in good balance with what the industry needs. Class I intakes are unchanged from a week ago.
The Arizona milk market is flat, with sufficient volumes available to producers within the state. Milk yield is level to slightly up as cooler weather in the mornings is keeping cows comfortable. Manufacturers report not needing to bring any milk from out-of-state. Class II requests are at the same levels as in the prior week. Class I sales are mostly stable.
In New Mexico, milk production is steady. With several schools either on fall break or about to close for the break, Class I demand has declined. Class II sales are also trending lower.
Pacific Northwest milk production is strong. Milk intakes are keeping most manufacturing facilities full. Bottling demand is steady. Industry contacts say there is plenty of cream and multiples have eased back somewhat.
Milk production in the mountain states of Idaho, Utah and Colorado is flat to seasonally lower. However, some farms continue to add cows into the milking herd. As a result, milk intakes are keeping manufacturers running at or near full capacity. Small disruptions in processing continue to cause excess loads of milk. Some processors are picking these loads up at $4.75 under Class IV.
The condensed skim market is fairly balanced. A lot of the supplies are moving to dryers for nonfat dry milk production.
This week, the western region is swimming in a pool of cream. Cream multiples for all Classes have declined on both edges of the range. Ice cream buyers continue to decrease their intakes. Butter churning activities are a bit more active. National Retail Report Dairy ± Fluid Milk Summary Advertised Prices at Major Retail Supermarket Outlets ending during the period of 10/04/19 to 10/10/2019 Half Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $2.35 $2.15 $2.13 Organic $3.48 $3.99 $3.67 Regional (Conventional) Wtd. Ave. Low High Northwest $2.69 $2.69 $2.69 Regional (Organic) Wtd. Ave. Low High Northwest $4.12 $2.99 $4.39 Southwest $3.09 $2.99 $3.50 Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $3.47 $2.54 $3.27 Organic $5.70 $5.81 $6.99 Regional (Conventional) Wtd. Ave. Low High Northwest $1.99 $1.99 $1.99 Southwest $1.99 $1.99 $1.99 Regional (Organic) Wtd. Ave. Low High Northwest $5.36 $5.00 $5.99 Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.0500 - 1.2300 Information for the period October 7 - 11, 2019, issued weekly Secondary Sourced Information: Dairy Products Report - Ice Cream, Regular, Hard Released October 3, 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: August 2018 and 2019 Monthly Production (1000 pounds) Percent Change from Total Cream, Regular (Hard) August July August August July Region 2018 2019 2019 2018 2019 United States 70,111 65,958 65,650 -6.4 -0.5 Atlantic 15,368 14,267 14,836 -3.5 4.0 Pennsylvania 3,531 3,620 3,564 0.9 -1.5 Central 41,364 39,285 37,602 -9.1 -4.3 Missouri 3,397 2,765 3,345 -1.5 21.0 Ohio 2,810 2,815 2,539 -9.6 -9.8 West 13,379 12,406 13,212 -1.2 6.5 California 7,264 6,968 7,937 9.3 13.9 Oregon 1,282 1,408 1,226 -4.4 -12.9 Utah 2,736 1,670 1,726 -36.9 3.4 Ice Cream, Regular (Hard) ± Cumulative Production January - August Cumulative Production Percent Change (1000 pounds) from Report Month 2018 2019 2018 August 509,396 497,475 -2.3