Fluid Milk and Cream — Western U.S.
Farm milk output remains strong in California. Mild temperatures are in favor of dairy cow’s productivity. Milk supplies are more than adequate, keeping many processing facilities running on full schedules. Discounted milk loads are common, and milk is moving inside and outside the state. In general, Class I demand is described as flat with steady orders from educational institutions and grocery stores. Class II demands are a bit lower.
With lower temperatures and longer nights for cows to recover, farm milk production is up in Arizona. Class I sales have stabilized at seasonal levels, while Class II sales are waning. Balancing plants are being actively operated as more milk in and out of the state continues to clear through the dryers.
In New Mexico, farm milk production is steady to higher. Albeit milk holdovers are currently above average levels, they are still manageable. Shipments into Class I are up as some grocery stores restock their shelves.
Pacific Northwest milk production is increasing along seasonal patterns. Manufacturers have held milk intakes in balance with processing needs through production base programs. Industry contacts say there is plenty of milk for processing and cream is abundant. Bottling demand is stable.
Mountain state — Idaho, Utah, and Colorado — milk production is strong and able to fill most processing needs easily. Some discounted milk loads are available in Idaho at $4.50 under Class IV.
Like much of the West, copious amounts of cream are available, some at multiples just below flat market.
Regional contacts say that although there was a decent carryover of water in the reservoirs this fall, the snowpack is a little light. The dry start to the winter will mean the region will need to catch up if water levels are to be at normal reserves going into the growing season.
In the West, condensed skim volumes are readily available to meet most manufacturing demands.
Butter churning is very active in the region, which is helping to clear much of the cream. The demand for cream is better than in previous weeks, reflected in slightly higher multiples this week.