Fluid Milk and Cream — Western U.S.
In California, the current weather is ideal for milk production. Milk yield is at anticipated seasonally high levels. Tests on incoming loads are showing improvements in component levels.
Bottled milk demands are trending lower, but the manufacturers of some other Classes of milk are taking in the volumes of milk left by Class I
The plants that will remain opened during the holiday have enough capacities to manage the milk holdovers that are expected toward the end of this week.
Milk production in Arizona is flat. Most Class II demands have now been filled. Processors are just taking care of a few last-minute order deliveries.
According to contacts, this year, Class II sales have been less stellar compared to the previous year. Class I requests are also lower.
Milk supplies in New Mexico are increasing bit by bit. Supplies will most likely reach peak volumes for the week on Thursday when several processing plants closed for the holiday. Class I and II demands have largely declined, whereas Class III and IV orders picked up.
Balancing needs are very high, and balancing plants are operating near full capacities. Farm milk production is steady to increasing.
Pacific Northwest milk production is steady. School milk bottling and some Class II manufacturers have eased back on demand for milk loads over the Thanksgiving holiday.
While cheese and butter/powder manufacturers may also plan to have some downtime for the holiday, industry contacts say those facilities are currently running at or near full capacity.
Milk production in the mountain states of Idaho, Utah, and Colorado is steady to higher. Manufacturers are running full production schedules at many facilities. Some processors planned to slow down for the Thanksgiving holiday, and milk handlers know it may be more difficult to place spot milk loads.
Discounted milk loads have already been commonplace. As a result, some contacts expect there could be milk that does not get picked up over the holiday. Condensed skim is plentiful in the West. Its drying is ongoing and prioritized over other dry products’ manufacturing.
The number of cream offers is slowly increasing. Sales are down due to most holiday orders being fulfilled. Cream multiples for all Classes are anticipated to be lower as the week gets close to ending. Many manufacturing facilities shut their doors at least on Thanksgiving Day. Therefore, in many areas, butter plants will be the only alternative for clearing cream.