Fluid Milk and Cream — Western U.S.
California milk production is declining following seasonality, but output is still copious. Class I demand is down. Class III orders are growing.
In Arizona, milk yield is flat. Some dairy manufacturers with available capacity have been supplementing local milk supplies with out of state milk. Class I demand is steady. Balancing plants are active, and cream cheese and other Class III production is picking up.
Milk output in New Mexico is level. Class I and II orders are down. Balancing plants are working through steady milk supplies.
Milk is abundant in the Pacific Northwest. Overbase programs are in place to help keep supplies in good balance with processing needs. Additionally, organic milk that would have been destined for a plant damaged by fire earlier this spring is being diverted to conventional facilities throughout the region. Some contacts say that this additional milk source has made output seem even heavier. Class I orders are lower, but Class II and III demand is growing.
Milk production is strong in the mountain states of Idaho, Utah and Colorado. Some contacts say milk is especially long in Idaho, where it can be found at discounts of up to $6.00 under Class IV. Bottling orders are flat to lower. Limited spot loads of condensed skim are available around flat class pricing, but contracts are steady.
Due to holiday plant closures, cream loosened this week. Some contacts anticipate supplies tightening soon, as summer heat begins to affect milk components.
In the meanwhile, ice cream manufacturing is absorbing heavy volumes, and butter churns have no difficulty sourcing quantities needed for seasonally decreased production. This week, the cream multiples range shifted slightly lower.