Fluid Milk and Cream — Western U.S.

July 11

Report 28 - Released on July 11, 2019

     In California, bottled milk and Class III intakes have increased. Retail stores are
     restocking their shelves while schools that have summer programs are refiling their
     pipelines. Milk production is stable. Several processors report having enough supplies to
     fulfill their daily activities. Processing schedules are back to normal. In Arizona, milk
     volumes are available for most processing duties. However, production has been steady to
     declining in recent weeks. Manufacturing plants are not running at full schedules. From time
     to time, processing plants within the state take out of state milk to help with balancing as
     they have plenty of unused capacities. Class I sales are higher with retail shelves being
     restocked after the holiday. New Mexico milk supplies are slowing going back to pre-holiday
     levels. Milk requests are up, driven by Class I and III orders. Class II demand continues to
     be strong with increasing requests from ice cream processors. Milk production is unchanged
     to declining with the current hot temperatures in the state. The density of milk components
     is declining. All needs for milk are being met within the state. Milk production in the
     Pacific Northwest remains strong. Manufacturers say there is plenty of milk for processing.
     A few milk handlers suggest milk components are lower than expected. Bottling demand is
     steady. Class II processors and butter makers are pulling heavy volumes of cream. Milk
     production in the mountain states of Idaho, Utah and Colorado is mixed. Milk output is still
     inching higher toward peak levels for Idaho and Utah, but is plateauing in Colorado. Class I
     and III milk demand mostly picked up across the region. However, Class III intakes in
     northern parts of the region eased back a little as milk flows settled into post-holiday
     patterns. A few distressed loads were available in Idaho at a discount. The cream market is
     strong in the West as testified by increasing cream multiples. Compared to last week, the
     cream multiples for all Classes have increased 0.03 at the bottom of the range and 0.02 at
     the top of the range. Ice cream makers are taking good volumes of cream. Cream sales in lieu
     of churning are also occurring at some localities as processors take advantage of higher
     cream prices. Condensed skim sales are flat, and stocks remain sufficient for order
     fulfillment.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.1500 - 1.3100


     Information for the period July 8 - 12, 2019, issued weekly

     Secondary Sourced Information:

     National Retail Report Dairy ± Fluid Milk Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the
     period of 7/05/19 to 7/11/2019

     Half Gallon, All Fat Tests               Weighted Average Price
     National                          This Period       Last Week      Last Year
      Conventional                        $1.71            $1.97          $1.93
      Organic                             $4.33            $4.08          $4.14

     Regional (Conventional)            Wtd. Ave.           Low            High
     Northwest                            $0.99            $0.99          $0.99

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

     Gallon, All Fat Tests                    Weighted Average Price
     National                          This Period       Last Week      Last Year
      Conventional                        $1.95            $2.54          $2.65
      Organic                             $5.58            $5.00          $6.99

     Regional (Conventional)             Wtd. Ave.          Low            High

     Southwest                            $1.99            $1.99          $1.99

     Regional (Organic)                 Wtd. Ave.           Low            High
     Northwest                            $5.00            $5.00          $5.00

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