Fluid Milk and Cream — Western U.S.

May 21

California milk production is a bit down compared to last week. Many farmers hit their peak flush production in Mid-April. A few processors say that they are transitioning their outputs to preferred product mixes. Some are selling a few spot loads of milk, but could process all their supplies if needed.

The market is slowly regaining its balance in California. Supplies of milk are more manageable now. Class I deliveries are steady to slightly up.

Milk output in Arizona continues to decrease as it usually does around this time of the year. Total intakes are increasing with more businesses reentering the market after the quarantine. Nonetheless, there are enough loads of milk to meet all processing requirements. Class I sales are steady to a bit up. Manufacturing plants remain busy, but not as much as in the previous weeks.

In New Mexico, According to industry contacts, Class I orders have significantly increased for the first time in weeks. Class II sales are close to stable, whereas Class III demands are higher. Milk supplies are more manageable and balancing needs are down. As many businesses resume their activities post-quarantine, market conditions are returning to normal.

Pacific Northwest milk production is stable. Industry contacts say milk intakes are still in good balance with processing needs. Manufacturers are running normal schedules. Bottling demand is steady. Favorable weather is aiding cow comfort and spring planting.

However, farmers have some concerns about potential drought conditions developing across the region.

In the mountain states of Idaho, Utah and Colorado, milk production is strong. Contacts suggest that much of the excess milk and cream that was common several weeks ago has disappeared. Although discounted loads are present, supplies are in better balance. Manufacturers are running full production schedules. According to the NASS Milk Production report, the dairy herd added cow numbers from last year. And with higher production per cow milk, production is continuing to show strong growth in the mountain states. Western Condensed skim sales are steady, but are still lower than expected for a few manufacturers. Some of them report not needing to sell in the spot market as they can manage their own supplies.

Drying is active. Cream supplies are steady to declining depending on the suppliers. The butterfat contents of milk are declining, aided by warmer weather.

Many loads of cream are moving to ice cream production, but remain available for the making of butter. Cream multiples for all Classes are higher at the bottom of the range.

Milk pooled on the Pacific Northwest Order 124 totaled 621.6 million pounds in April 2020. Class I utilization accounted for 22.25 percent of producer milk. The uniform price was down $2.96 from last month, but $2.96 below the same month a year ago.

Milk pooled on the Arizona Order 131 totaled 441.4 million pounds in April 2020. Class I utilization accounted for about 21.8 percent of producer milk. The uniform price was down $3.23 from last month, and $3.10 below the same month a year ago.

The NASS Milk Production report noted April 2020 milk production in the 24 selected states was 17.8 billion pounds, 1.6 percent up from a year ago. Milk cows in the 24 selected states totaled 8.85 million head, 65,000 head more than a year ago.

Recommended for you