Fluid Milk and Cream — Western U.S.

April 25

     Milk production in California is still strong, but unchanged. According to industry
     contacts, milk output is below the level of last year. Fluid milk demand declined a bit due
     to schools' closures for the holiday. Balancing schedules are very active as some plants are
     functioning seven days a week to process the milk. Arizona milk production is slightly up
     this month compared to the previous one. However, this week, output is like that of last
     week. The weather has started to warm up, so dairy farmers expect milk yield to start
     dropping soon. Milk processing was busier this past weekend due to a reduction of Class I
     milk intakes. Nevertheless, manufacturing activities have returned to normal after the
     holiday. Current milk volumes are in good balance with demand. Milk supply is well-adjusted
     in New Mexico. Balancing facilities remain on busy schedules. Milk production is just a
     little higher than the preceding week. Class I plant managers are taking steady loads while
     Class III intakes declined. With the ice cream season coming in full force, Class II sales
     are trending higher. Milk production in the Pacific Northwest continues to trend higher.
     Intakes, while coming in heavy, are generally in good balance with processing needs.
     Industry contacts say manufacturers can easily find homes for the milk. Bottling demand is
     steady. Milk production in the mountain states of Idaho, Utah and Colorado is increasing.
     Manufacturers are not having any trouble getting the milk needed for processing, but neither
     is the milk supply in overabundance. Flush is still weeks away, but a little more regional
     processing capacity has helped soak up the increasing milk supply. Contacts within the
     region relay beautiful weather and plentiful water reserves have kickstarted pastures and
     alfalfa fields into growth. Feed stocks on hand are in good shape, although dairy quality
     alfalfa hay is in tight supply, waiting for the first cuttings of the year. Farmers
     anticipate a good start to the cropping season. Western condensed skim continues to strongly
     move to ice cream and cheese. Supplies are largely available. Western cream demand is mixed.
     In some areas, ice cream and cheese makers are pulling more cream away from the churns.
     Cream availability is variable. Cream multipliers declined a tad at the top of the range,
     but increased at the bottom.

     National Retail Report Dairy ± Fluid Milk Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the
     period of 4/19/19 to 4/25/2019

     Half Gallon, All Fat Tests                   Weighted Average Price
     National                          This Period       Last Week      Last Year
     Organic                             $4.27            $4.11          $3.84
     Conventional                        $2.00            $2.19          $1.55

     Regional (Conventional)            Wtd. Ave.           Low            High
     Northwest                            n.a.             n.a.           n.a.
     Southwest                            n.a.             n.a.           n.a.

     Regional (Organic)                 Wtd. Ave.           Low            High
     Northwest                           $4.00            $4.00          $4.00
     Southwest                           $3.99            $3.99          $3.99

     Gallon, All Fat Tests                        Weighted Average Price
     National                          This Period       Last Week      Last Year
     Organic                             $5.15             n.a.          $6.88
     Conventional                        $2.46            $2.74          $2.42

     Regional (Conventional)            Wtd. Ave.           Low            High
     Northwest                           $1.99            $1.99          $1.99
     Southwest                            n.a.             n.a.           n.a.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.1000 - 1.2000

     Information for the period April 22 - 26, 2019, issued weekly

     Secondary Sourced Information:

     Milk pooled on the Pacific Northwest Order 124 totaled 754.2 million pounds in March 2019.
     Class I utilization accounted for 19.30 percent of producer milk. The uniform price was up
     $0.51 from last month, and $1.91 above the same month a year ago.

     Milk pooled on the Arizona Order 131 totaled 462.8 million pounds in March 2019. Class I
     utilization accounted for about 22.5 percent of producer milk. The uniform price was up
     $0.42 from last month, and $2.16 above the same month a year ago.

     The NASS Milk Production report noted March 2019 milk production in the 23 selected states
     was 17.8 billion pounds, 0.1 percent below a year ago. Milk cows in the 23 selected states
     totaled 8.71 million head, 50,000 head less than a year ago. The following table shows
     western states included in the report and the monthly milk production changes compared to a
     year ago:

     March 2019 Milk Production, (USDA-NASS)

                  (Million Lb.)   % Change From
                                    1 Year Ago

     Arizona           442            - 4.9
     California       3614            + 0.7
     Colorado          401            + 3.9
     Idaho            1284            + 1.4
     New Mexico        712            - 3.9
     Oregon            221            + 4.2
     Utah              194               -
     Washington        567            - 0.4

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