FLUID MILK AND CREAM
REVIEW – WEST
(USDA Market News)
In California, farm milk output is variable depending on the reporting processing facilities. In some areas, milk production is steady while in others it is declining. As hotter temperatures are prevalent in California, market participants are keeping a close eye on milk output levels. Milk components are also starting to decrease.
Overall, milk supplies remain available to meet all manufacturing needs. Current fluid milk demand is steady due to current low milk requests from buyers.
In Arizona, milk production is steady to trending down. Butterfat components are starting to decrease, especially in areas with higher recorded temperatures. Some market participants believe that the spring flush is over.
Processing plants are running at below full capacities, so they have more time for maintenance and repair workloads. Class I milk orders have remained the same compared to last week.
New Mexico milk yield held steady. Class I interest continues to slide because of schools closing for the summer break. Requests for Class II decreased as well, while Class III sales edged up. Planned/unplanned maintenance and repair workloads have forced some processors to decrease their milk intakes. As the result, milk holdovers are higher than usual.
However, handlers were quick to find alternative processing plants to take some of the milk.
Pacific Northwest milk production remains strong but has eased with the passing of the peak of spring flush. Schools have mostly closed for the year, shifting some milk away from bottling and into manufactured dairy goods. Manufacturers say they are getting plenty of milk and intakes are generally in good balance with processing needs.
In the mountain states of Idaho, Utah and Colorado, milk production has had year over year increases.
Current milk production is strong and continues to grow into the peak of spring flush.
Plenty of quality forage, ample supplies of water and relatively comfortable weather have set the stage for strong milk output with high components. Industry contacts say milk handlers have been proficient at finding homes for milk within the region and neighboring states.
However, contacts say they would not be surprised if there is some milk discarded, in a few regional pockets, as the area reaches the zenith of spring flush.
Condensed skim is accessible for all processing obligations. Specialty ice cream manufacturers continue to take some loads. Drying schedules are also active. Cream interest from ice cream and frozen dessert makers remain active in the Western region.
However, butter churning is still ongoing. Haulers are taking extra care in handling cream as the quality might be affected by external higher temperatures.
According to the DMN National Retail Report-Dairy for the week of June 1-7, the national weighted average advertised price for one gallon of milk is $3.01, up $0.20 from last week, but down $0.33 from last year. The weighted average regional price in the Southwest is $2.45 with a price range of $1.99-$2.99. The weighted average regional price in the Northwest is $1.84 with a price range of $1.79-$1.99.
According to the NASS Dairy Products report, hard ice cream production in the West region for April 2018 is 11.9 million gallons, 5.3 percent lower than a month ago, and 26.4 percent below the previous year.
According to the California Department of Food and Agriculture, the May 4a price (butter/powder) in California is $14.06, up $0.77 from the previous month, but $0.37 lower from a year ago.
This compares to the Federal Order Class IV price of $14.57 for May. The May 4b price (cheese) is $14.90, up $0.63 from the previous month, but $0.36 lower from a year ago. This compares to the Federal Order Class III price for May at $15.18.