Fluid Milk and Cream — Western U.S.
In California, milk components are steadily increasing, aided by improving weather outcomes for dairy herds. Milk output is generally steady to up. Sales to educational institutions and grocery stores are mostly stable.
In Arizona, milk production is strengthening week by week. Dairy cows remain in their comfort zone when it comes to weather conditions and are showing it through increasing milk yield. Milk processing schedules are getting busier, but volumes are manageable. From time to time, some manufacturing plant managers will take out- of-state milk to help stabilize milk from other regions. Bottled milk sales are unchanged compared to the past week. Overall, a good equilibrium exists between the supplies and demands for milk.
In New Mexico, plant operators are staying busy with the processing of milk. They have enough capacities for fulfilling all manufacturing obligations. Milk balancing volumes have remained stable. Class I sales are unchanged from the previous week, but according to market players, Class III intakes are a bit higher. Milk volumes off the farms are at seasonally strong levels.
Pacific Northwest milk production is robust for the time of year. Bottling demand is steady, and manufacturers have plenty of milk to keep facilities running at or near full capacity. Some milk handlers are encouraging dairymen to hold back on milk volumes, and farmers are responding by feeding for milk solids. In some cases, say industry contacts, milk components are at two-year highs. Contacts expect strong milk and components to continue for the near future.
Milk production in the mountain states of Idaho, Utah, and Colorado is strong and steady. While in better balance in the southern part of the region, milk intakes are overflowing in the north. Idaho processors suggest that milk handlers are regularly asking around to see if they can find a home for any additional load of milk. Contacts contend that the milk system is full now. They are troubled by how the industry may need to handle the deluge of extra milk through the winter holidays, in the event of a major plant disruption, or as next year’s spring flush appears. So far, milk dumping has been minimal, but discounted loads are commonplace.
Condensed skim market conditions are steady as sales and prices are unchanged. Loads are available. Cream is particularly available in the West compared to the other regions of the U.S. To take advantage of lower cream cost, some western cream is being moved to the Midwest. Requests have not changed this week. Cream multiples have declined a bit on the range.