FLUID MILK AND CREAM
REVIEW – WEST
(USDA Market News)
California milk volumes being produced have dropped. Dairy farmers expect a further drop in milk yield throughout the summer.
However, milk loads available for processing have increased during this short holiday week as some plant operations were closed.
The butterfat content of milk is declining.
Sales into Class 1 are steady. Some cream is moving out of state.
In Arizona, milk components are declining. Sales into bottling facilities are flat. Dairy producers noted that the long stretch of higher daytime temperatures is taking a toll on cows’ comfort.
Farm milk production in New Mexico continues to trend lower as weeks go by. Nonetheless, processors indicate that they have sufficient milk to satisfy all manufacturing obligations.
Milk volumes heading into bottling plants increased as grocery and convenience stores restocked their shelves for the past holiday sales. Class II sales declined while Class III demand increased.
In the Pacific Northwest, milk production is in line with seasonal norms. Comfortable weather conditions for cows are contributing to robust milk output. As so, there is sufficient milk to meet most manufacturing requirements.
Handlers are managing accordingly any excess loads of milk by finding additional processing room wherever possible.
In the mountain states of Idaho, Utah and Colorado, milk production remains strong. In the North, milk production is increasing ahead of the peak season.
However, in the South, hot temperatures have negatively affected total milk yield.
Manufacturers have plenty of milk for their daily processing activities. Handlers are managing milk volumes without any major issues. Currently, a limited number of distressed loads are trading at discounted prices.
Western condensed skim remains available to satisfy all buyers’ requests.
The cream market in the West has been improving for the past few weeks. This trend has slowed down slightly with the holiday.
Some butter manufacturers are clearing cream readily to the ice cream/soft serve/frozen novelties markets.
Cream cheese production seems to be steady. In some parts of the West, cream transportation is difficult to manage due to increasing temperatures that could affect the quality of cream.
Cream multiples haven’t changed from a week ago. They are at 1.07 to 1.28, reflecting intrastate and interstate sales.