FLUID MILK AND CREAM

REVIEW – WEST

(USDA Market News)

Nov. 20

In view of the upcoming holiday, California Class I milk demand has softened. Schools are closing this week and don’t need that much milk.

However, it is anticipated that next week, as they reopen, they will take additional loads of milk to replenish their pipelines. Most retailers have already picked up their orders for Thanksgiving.

Milk production is currently stable to up. California plant managers do not anticipate any issues with milk handling in the coming days.

In Arizona, milk output is consistent with last week’s levels. In the previous week, bottling schedules were heavier, but this week they are easing little by little.

Overall, milk is in good balance with the needs of buyers. Milk handlers report that capacities are handy for extra milk processing during the holiday. In New Mexico, Class I and II sales are sharply down this week, but Class I orders are expected to rebound next week as educational institutions resume the school sessions. Class III intakes are trending higher. Overall, milk output is increasing as nighttime temperatures are cooler. Moderate loads of milk are moving out of state, so local processing plants would have to run longer schedules for milk balancing.

Pacific Northwest milk production is trending slightly lower and following typical seasonal patterns. Many manufacturers plan to operate at full production schedules through the holiday. Industry contacts expect this may help reduce the strain caused by lower bottling demand through the holiday week.

Milk production in the mountain states of Idaho, Utah and Colorado is strong. Production is in good balance and most milk handlers have planned ahead for the holiday load juggling. Processors are getting plenty of milk for their needs. A few loads of milk are expected to find homes in neighboring states, or in Colorado, where there is a little more available processing capacity.

Western condensed skim inventories are plentiful and will be even more available in this holiday shortened week. Milk volumes produced are also increasing, adding to the loads of condensed skim in the market.

In the West, more cream will be heading to the churns as some producers of high fat dairy products will close for the holiday. Most of the holiday cream needs have been filled, so cream demand is softening. This week, cream multiples are lower at 1.05-1.27.

National Retail Report Dairy ± Fluid Milk Summary Advertised Prices at Major Retail Supermarket Outlets ending during the period of Nov. 16-22.

Half Gallon, All Fat Tests Weighted Average Price National

Organic: $3.63

Conventional: $2.67

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