Fluid Milk and Cream - Western U.S. Report 8
Milk production in California is steady and manageable. Class I demands are unchanged from a week ago. The components of milk are increasing.
There is a lot of milk available in the Arizona dairy market. Manufacturing machines are being operated at full capacities. Nonetheless, processors cannot take all the milk offered to them due to limitations in processing room. Occasionally, they take a few loads of out of state milk and cream. The expectation is that Arizona fluid milk production will remain high until June or July. Class 1 sales are stable. Minor wintery weather persists in some parts of New Mexico and continues to create delays in milk deliveries. Haulers are doing their best to keep moving milk to the predetermined locations.
Despite 3-6 inches of snow with ice in Eastern New Mexico, milk output hasn't declined in that region. Haulers are looking for additional sale outlets to prevent any milk loads from touching the ground. Class I demand is a bit up, but Class II and III sales are down.
Pacific Northwest milk production is strong. Industry contacts say the recent run of pleasant weather has helped milk output surge forward once again. Manufacturing facilities are running at or near full capacity. Bottling demand is steady. With elevated milk component levels, cream supplies are plentiful.
Milk production in the mountain states of Idaho, Utah, and Colorado is heavy. Industry contacts relay that several million pounds of milk was discarded in Idaho this January due to lack of processing space. While it is difficult to prognosticate, the heavy milk supplies at what is typically the nadir of the milk production season suggests challenges ahead for the region. Many manufacturing facilities are running at full capacity already. Some processors expect to enforce base programs to curb production. In addition, a few manufacturers may discontinue the ability of farmers to transfer base to other farms.
There is so much condensed skim in the West that some processors are looking for ways to move it from one region to the other for drying.
In the West, cream availability is still up. Multiples for all Classes have increased at the bottom of the range compared to the previous week. Cream mobility across regions is helping with loads management. NATIONAL RETAIL REPORT DAIRY – FLUID MILK SUMMARY Advertised Prices at Major Retail Supermarket Outlets ending during the period of 02/14/2020 to 02/20/2020 Half Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $2.07 $2.96 $2.26 Organic $4.17 $4.04 $3.97 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 $3.17 $2.99 $3.48 Southwest $3.71 $2.99 $4.99 Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $3.72 $2.09 $3.40 Organic $5.99 $5.99 $4.70 Regional (Conventional) Wtd. Ave. Low High Northwest $2.75 $2.50 $2.99 Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.0000 - 1.1800 Information for the period February 17 - 21, 2020, issued weekly Secondary Sourced Information: Milk pooled on the Pacific Northwest Order 124 totaled 769.5 million pounds in January 2020. Class I utilization accounted for 19.39 percent of producer milk. The uniform price was down $0.44 from last month, but $2.18 above the same month a year ago. Milk pooled on the Arizona Order 131 totaled 442.9 million pounds in January 2020. Class I utilization accounted for about 24.46 percent of producer milk. The uniform price was down $0.79 from last month, but $2.32 above the same month a year ago.