Fluid Milk and Cream — Western U.S.
The California milk market is following seasonal norms when it comes to the Labor Day manufacturing activities. Demand for Class I was a bit down. Balancing schedules were more active at the beginning of the week, but are back to normal now. Milk supplies are plentiful to meet all requests. Production is steady compared to last week. Arizona milk volumes produced are unchanged from a week ago. There was no need to bring in out-of-state milk as offers within the state were enough to satisfy all buying obligations. Fluid milk sales are stable to down. Milk production is adequate to fill the needs of all New Mexico manufacturing facilities. Class II and III demands are up, whereas Class I sales are down. Milk balancing volumes are declining bit by bit after the holiday. Processing machines are running near full capacity. There were a few repair and maintenance workloads that had minor impacts on dairy plants' operations. While overall milk production in the Pacific Northwest is steady to lower, warm days and cool nights have provided good cow comfort, keeping milk output levels strong. Manufacturers report having plenty of milk for processing needs. Bottlers are getting the school pipelines refilled, and the skimming is freeing up a bit more cream for Class II and butter production. Idaho, Utah and Colorado milk production remains strong. Milk output is in generally good balance with processing needs, however a few loads of discounted milk are available at $4.75 under Class IV. Dairy manufacturing facilities are running at or near capacity. Condensed skim processing is mostly steady in the West. Supplies are readily available. There is a slight uptick in butter churning this week as cream is more present in the market. Ice cream makers are requesting less cream. Multiples for all Classes are 1.05-1.29, down 0.02 at the top of the range. National Retail Report Dairy ± Fluid Milk Summary Advertised Prices at Major Retail Supermarket Outlets ending during the period of 8/30/19 to 9/5/2019 Half Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $2.03 $2.30 $2.49 Organic $4.12 $3.90 $4.22 Regional (Organic) Wtd. Ave. Low High Northwest $3.99 $3.99 $3.99 Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Conventional $3.21 $2.53 $2.83 Organic $7.40 $5.79 $7.49 Regional (Conventional) Wtd. Ave. Low High Southwest $3.57 $2.98 $3.99 Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.0500 - 1.2900 Information for the period September 2 - 6, 2019, issued weekly Secondary Sourced Information: Dairy Products Report - Ice Cream, Regular, Hard Released September 4, 2019, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). Ice Cream, Regular (Hard) Production ± States and United States Monthly Production (1000 pounds) Percent Change from Total Cream, Regular (Hard July June July July June Region 2018 2019 2019 2018 2019 United States 68,966 66,462 66,081 -4.2 -0.6 Atlantic 14,761 13,702 14,430 -2.2 5.3 Pennsylvania 3,530 3,412 3,620 2.5 6.1 Central 40,379 40,762 39,255 -2.8 -3.7 Missouri 3,308 3,335 2,765 -16.4 -17.1 Ohio 2,831 2,443 2,815 -0.6 15.2 West 13,826 11,998 12,396 -10.3 3.3 California 7,389 6,562 6,968 -5.7 6.2 Oregon 1,450 1,261 1,408 -2.9 11.7 Utah 2,839 2,050 1,670 -41.2 -18.5 Ice Cream, Regular (Hard) ± Cumulative Production January - July Cumulative Production Percent Change (1000 pounds) from Report Month 2018 2019 2018 July 439,285 431,948 -1.7