FLUID MILK AND CREAM
REVIEW – WEST
(USDA Market News)
Farm milk availability seems limited in some zones of California. A few buyers have reported some difficulties finding the volume of milk they wanted.
Loads of milk are changing hands between neighboring areas to assure adequate supplies for processing needs. Milk production is stable and within expectations this week.
Bottled milk intakes are increasing as some schools resume this week. The fires in Northern and Southern California have not much impacted milk production and processing activities.
In Arizona, farm milk output is about the same as last week. Bottled milk demand is steady to increasing. Milk volumes are in good balance with processing obligations. Manufacturing plants are running below full capacities and plant managers continue to take care of some of the repair/maintenance work ahead of the busy season. Overall, the market tone is stable.
In New Mexico, farm milk output is following the same downward trend as last week. Tightness with trailers is limiting hauling capacity to move farm milk to processing plants.
However, handlers are finding ways to manage milk supplies. Class I, II, and III sales have all inched up.
Educational institution pipelines are being filled for the new school year. Ice cream processors continue to take on a few more loads of milk.
Milk production in the Pacific Northwest remains strong. Hot weather persists in parts of the region.
Although industry contacts expect milk intakes to fall off due to the heat, nighttime temperatures are low enough to allow cows a chance to recharge.
Manufacturers say they have plenty of milk to fill processing schedules. Bottling demand is steady. Ice cream and other Class II manufacturers continue to pull strong volumes of milk and cream.
In the mountain states of Idaho, Utah and Colorado, milk production has yet to slow down. Milk intakes are following normal seasonal patterns.
Industry contacts say the heat has cut into surplus milk, to some degree. However, discounted loads are still finding homes in surrounding states.
Processors suggest there is ample amounts of milk for any processing run. Condensed skim supplies continue to be somewhat tight. Nonetheless, it is not as tight as it was a couple of weeks ago. Some delivery delays have been reported.
Condensed skim prices are firm. Some western sources report that cream continues to boom. Demand for ice cream and others frozen dessert manufacturing is active.
In general, there is a lot of demand for cream and the supplies are appropriate to meet the need of customers. However, tightness has been reported in some areas. Cream multiples are 1.11-1.35.
According to the NASS Dairy Products report, hard ice cream production in the West region for June 2018 is 13.2 million gallons, 2.8 percent higher than a month ago, but 23.6 percent below the previous year.