Fluid Milk and Cream — Western U.S.

Pacific Northwest milk production is steady to higher.

Published on May 11, 2018 1:44PM



(USDA Market News)

May 10

California farm milk is being orderly processed. Milk output is steady to slightly down.

Manufacturing capacities are adequate to handle all milk supplies. Processing duties are running as scheduled. No major issues were reported this week. Bottling demand is flat.

In Arizona, weather conditions are getting hotter and impacting cows’ well-being. As so, milk production is progressively dropping.

Milk loads available to manufacturers are high, but remain manageable. Some milk continues to be shipped to California for processing. Milk intakes into bottling plants are flat.

New Mexico milk production is slightly down this week. Farm milk processing is going well. Holdovers are back to normal levels. Milk supplies are in line with buyers’ demands.

Class I demand from grocery stores and schools is steady to slightly down. Class II intakes are increasing as ice cream manufacturers start requesting more. Class III sales are generally steady.

Pacific Northwest milk production is steady to higher. Some industry contacts suggest intakes are increasing due to pleasant weather in the region. Others add that limited hot weather, plenty of water and generally good quality feedstocks have yielded strong milk components as well.

Manufacturers report plenty of milk for most processing needs. Bottling demand is steady and some Class II processors, that is ice cream, are commencing summer processing schedules.

Milk production in the mountain states of Idaho, Utah and Colorado is strong and growing. Northern reaches of this region typically do not reach flush until late June or early July.

Manufacturers report they have been able to keep pace with milk intakes for the most part, making space for some additional milk. Contacts say only a few loads of milk are getting pushed into surrounding states.

Western condensed skim is clearing well into the dryers. Processors hope that ice cream makers will be taking more loads as the summer gets close. Western cream is tightening slowly. Inventories are plentiful to meet all processing needs. Cream demand is higher, mostly for ice cream manufacturers. Cream churning is still active.

However, some processors hope to stop running the churns soon.

According to the DMN National Retail Report-Dairy for the week of May 4-10, the national weighted average advertised price for one gallon of milk is $2.51, up $0.37 from last week, but down $0.11 from a year ago. The weighted average regional price in the Southwest is $2.41 with a price range of $1.99-$2.79. The weighted average regional price in the Northwest is $1.99 with no price range.

According to the NASS Dairy Products report, hard ice cream production in the West region for March 2018 is 12.4 million gallons, 24.8 percent higher than a month ago, but 29.7

percent below the previous year.


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