Fluid Milk and Cream — Western U.S.

Aug. 22

     California milk production is flat to down, but it is balanced with the needs of buyers.
     Less milk is going to balancing plants' accounts as most of it is being used up by lower
     Classes of milk. With schools being back in session in many parts of the state, bottled milk
     intakes continue to increase. In Arizona, milk production has declined this week. The
     weather has been very hot, putting stress on cows and on their ability to produce milk. Milk
     supplies are not enough to satisfy all processing obligations. Some milk is moving from Utah
     to Arizona. Nevertheless, a few plants were still not running at capacities due to the lack
     of enough milk. Class I sales are steady whereas Class II demand has declined. In New
     Mexico, milk yield is on the down side. Milk balancing volumes have declined sharply because
     supplies were insufficient for processing activities. Handlers had to use alternative ways
     to get additional milk for their customers. Class I requests are stable, but Class II and
     III demands improved. Milk holdovers are very low. In the Pacific Northwest, milk supplies
     continue to be in check at most processing plants. Climatic conditions have been
     contributing to strong milk output. Bottled milk requests are unchanged from the previous
     week, but they are anticipated to pick up in the coming weeks when schools reopen. Milk
     production in the mountain states of Idaho, Utah and Colorado is still solid. While most of
     the milk produced in Idaho is being processed in state, in Utah, some milk is moving to
     Arizona to help meet processing requirements. The summer climate has not much affected milk
     output in the mountain states. Class I intakes are steady to a bit up. Western condensed
     skim inventories are steady to down. Some loads are moving from Texas to Arizona to fill the
     needs of customers. Cream demand has stepped down somewhat in the West, but cream multiples
     for all Classes have increased by .0200 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 8/16/19 to 8/22/2019

     Half Gallon, All Fat Tests         Weighted Average Price
     National                    This Period   Last Week   Last Year
     Conventional                   $2.01        $2.03       $2.02
     Organic                        $4.09        $4.07       $4.48

     Regional (Conventional)      Wtd. Ave.       Low         High
     Northwest                      $1.19        $1.19       $1.19
     Southwest                      $1.99        $1.99       $1.99

     Regional (Organic)           Wtd. Ave.       Low         High
     Northwest                      $3.65        $2.50       $3.99
     Southwest                      $4.27        $3.29       $4.99

     Gallon, All Fat Tests              Weighted Average Price
     National                    This Period   Last Week   Last Year
     Conventional                   $2.96        $2.79       $2.64
     Organic                        $4.99        $6.22       $6.99

     Regional (Conventional)      Wtd. Ave.       Low         High
     Northwest                     $2.75         $2.50       $2.99

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.1600 - 1.3400


     Information for the period August 19 - 23, 2019, issued weekly

     Secondary Sourced Information:

     Milk pooled on the Pacific Northwest Order 124 totaled 795.4 million pounds in July 2019.

     Class I utilization accounted for 17.7 percent of producer milk. The uniform price was up
     $0.58 from last month and $2.79 above the same month a year ago.

     Milk pooled on the Arizona Order 131 totaled 390.8 million pounds in July 2019. Class I
     utilization accounted for about 25.65 percent of producer milk. The uniform price was up
     $0.56 from last month and $2.85 above the same month a year ago.

     The NASS Milk Production report noted July 2019 milk production in the 24 selected states
     was 17.5 billion pounds, 0.1 percent up a year ago. Milk cows in the 24 selected states
     totaled 8.77 million head, 62,000 head less than a year ago. The following table shows
     western states included in the report and the monthly milk production changes compared to a
     year ago:

     July 2019 Milk Production, (USDA-NASS)

                   (Million Lb.)   % Change From
                                     1 Year Ago

     Arizona           364            - 6.7
     California      3,378            + 2.5
     Colorado          415            + 5.9
     Idaho           1,355            + 2.1
     New Mexico        696            - 0.9
     Oregon            221            + 1.8
     Utah              193            - 4.5
     Washington        581            + 0.2

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