Fluid Milk and Cream - Western U.S. Report 49
In California, the weather conditions continue to be in favor of milk production. Milk loads are plentiful and enough to meet all processing needs. Class I sales are back up with the return of schools to normal schedules. Class II demands are stable. Milk components' percentages are at higher levels.
Arizona milk output is seasonally strong. Class I intakes have picked up with the reopening of educational institutions, whereas Class II and III are steady. Handlers are routing milk to the different Classes without any issues. Processing plants are running near full capacities.
Wintery storms in parts of New Mexico have affected milk production and delivery schedules. However, haulers and producers were prepared for alternative solutions that kept the milk moving to the prearranged destinations. Milk holdovers were up toward the end of last week, partly due to declining intakes during the holiday and repair/maintenance workloads at some plants. Now, they are back to the average weekly levels. Class I, II and III orders have increased, resulting in less need for balancing. No surplus milk was reported this week.
Milk production in the Pacific Northwest is strong and steady. Mild weather has kept the milking herd comfortable. Industry contacts report bottling demand has returned to normal following the holiday week, and there is plenty of milk available to meet manufacturing needs. Most manufacturing facilities are running near full capacity.
Milk production in the mountain states of Idaho, Utah, and Colorado is steady to higher. Milk handlers were able to place milk loads over the Thanksgiving holiday without any confirmed losses. Milk distribution patterns are returning to normal. Industry contacts say the continued stress of heavy milk volumes in northern parts of the region have prompted some milk handlers to send base program notices out to farmers. The programs seek to bring milk supplies into better balance with available processing capacity.
Among the different dried dairy products, nonfat dry milk production is prioritized because of increasing demand and prices. As the result, condensed skim processing is active in the West.
Compared to the other regions of the United States, there is a lot more cream available in the West. Churning is active, ensuring ongoing clearing of cream. Cream sellers are looking for sale outlets wherever possible. As so, some industry participants report receiving unsolicited offers of cream. Several western vendors are considering moving cream to the East if they can find cost effective transportation. Cream multiples for all Classes are lower on both ends of the range. NATIONAL RETAIL REPORT DAIRY – FLUID MILK SUMMARY Advertised Prices at Major Retail Supermarket Outlets ending during the period of 11/29/2019 to 12/05/2019 Half Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional n.a. $2.92 $2.18 Organic $3.71 $3.73 $4.38 Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $3.49 $2.19 $2.34 Organic n.a. $5.00 $5.64 Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.0100 - 1.2100