Fluid Milk and Cream — Western U.S.
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