FLUID MILK AND CREAM REVIEW – WEST
(USDA Market News)
California milk output is flat to up. Some handlers report that because of an early spring flush, their milk intakes from the dairies are up.
In addition, due to lower profitability ratios, some dairies in California are selling this week, and others will be sold in the weeks to come.
Fluid milk demand remains steady throughout the week as schools take their normal loads.
In Arizona, some processors are struggling to find homes for their milk. Milk production is abundant this week, and it is expected to remain the same as the state heads to the spring flush.
A number of manufacturers have started to send
some milk to California to clear off more loads. However, moving milk loads remains a challenge due to limited truck availability.
Milk yield in New Mexico is steady following seasonal patterns. Issues with repair/maintenance workloads persist, but seem to be lower compared to last week.
As always, handlers are managing to the best of their abilities any milk holdovers.
Class I sales increased while Class II demand held steady.
Pacific Northwest milk production is steady and manufacturers report no problems getting the milk needed for processing. Although the region is watching a weather pattern that may bring in snow and colder temperatures, the winter weather, so far, has proven to be favorable for milk production.
Industry contacts in the mountain states of Idaho, Utah and Colorado report that although milk production is at low tide for the year, copious volumes of milk are available.
In some cases, the milk is discounted $3 to $4 under Class III prices to open up a home.
Yogurt and other Class II manufacturers are pulling good volumes of milk and cheese production is steady, but hiccups within the system are creating occasional distressed loads.
Dairy market observers are hopeful that recently completed expansions in the southern part of the region and proposed expansions in Idaho may have a balancing effect on the milk shed.
Condensed skim in the West is still abundant and continues to move from state to state to find processing capacities. Many producers report not having enough time to make high heat nonfat dry milk.
Demand for condensed skim is steady. In the western region, cream loads are actively moving to the churns as inventories are plentiful. Cream sales vary widely across the West.
Multiples for all usages are .98-1.20. According to the DMN National Retail Report-Dairy for the week of Feb. 16-22, the national weighted average advertised price for one gallon of milk is $2.96, up $0.63 from last week, and up $0.34 from a year ago. The weighted average regional price in the Southwest is $2.66 with a price range of $2.39-$2.89.
The weighted average regional price in the Northwest is $1.99 with no price range. Milk pooled on the Arizona Order 131 totaled 481.9 million pounds in January 2018. Class I utilization accounted for about 23.9 percent of producer milk. The uniform price was $14.56, down $0.88 from last month and $2.80 below one year ago.
Milk pooled on Pacific Northwest Order 124 totaled 742.3 million pounds in January 2018. Class I utilization accounted for about 22.0 percent of producer milk. The uniform price was $14.32, down $0.89 from last month and $2.71 below one year ago.
The NASS Milk Production report noted January 2018 milk production in the 23 selected states was 17.3 billion pounds, 1.8 percent above a year ago. Milk cows in the 23 selected states totaled 8.74 million head, 49,000 head more than a year ago.