FFLUID MILK AND CREAM REVIEW – WEST
(USDA Market News)
In California, milk production at the farm level is lower as the weather conditions remain hotter for cows’ well-being. Industry contacts anticipate that the heat stress may continue to negatively impact milk production.
Balancing plants are receiving the same volumes of milk as in the previous week. Requests from Class 1 producers are fixed. According to CDFA, August 2017 Class 1 prices in California are $18.32 in the North and $18.59 in the South. The statewide average Class 1 price based on production is $18.34.
This price is down $0.13 from the previous month, but $1.96 higher than a year ago. Although farm milk production in Arizona continues its downward trend, milk is readily available for processing needs. Manufacturing plants are working at full or near to full capacities. Bottlers’ milk intakes are unchanged from last week. The soil moisture is on average 86 percent adequate in Arizona. Sixty-seven percent of alfalfa hay is rated good to excellent, and harvesting is taking place on almost 90 percent of the alfalfa acreage.
In New Mexico, milk production is steady to higher this week, although it is anticipated to drop in the coming weeks. Contacts report that due to repair/maintenance issues, many surplus handling plants have lowered their orders. Milk intakes are ahead of local processing capabilities. Holdovers are higher than usual. Handlers are looking for additional sale outlets for excess milk processing. Milk intakes into Class I are down. Requests for Class II and III are a little higher. Ice cream and frozen dessert manufacturers are increasing their daily orders.
Pacific Northwest milk intakes are steady and manufacturers suggest there is plenty of milk available for processing. Milk handlers shifted a few loads of milk around the region in order to accommodate some repairs and maintenance at several plants. Milk production is following seasonal patterns and is starting to ebb slowly downward.
Manufacturers in the mountain states of Idaho, Utah and Colorado report milk production is descending from the peak of the flush. The lighter volumes are giving processors a little more breathing room for handling milk intakes. Higher temperatures have not greatly impacted cow comfort as yet, because cooler night temperatures are providing relief from the summer heat. A few loads of milk are still finding their way into the region from surrounding states and are rounding out processing runs. Due to some manufacturers switching from nonfat dry milk to condensed skim, condensed skim demand in the West continues to be active.
Western cream market is fairly firm. Demand for cream is at the seasonal levels for this time of the year. Orders from ice cream manufacturers are active. Cream multiples for all usages are steady at 1.15 to 1.28. According to the DMN National Retail Report-Dairy for the week of July 7-13, the national weighted average advertised price for one gallon of milk is $2.39, down $1.27 from last week, but $0.07 higher from a year ago. The weighted average regional price in the Southwest is $2.75, with a price range of $1.88-$2.99. The weighted average regional price in the Northwest is $1.89, with no price range. According to the NASS Dairy Products report, hard ice cream production in the West region for May 2017 is 16.5 million gallons, 2.1 percent higher than a month ago, but 13.5 percent below the previous year.