Fluid Milk and Cream — Western U.S.

April 4

     In California, farm milk production has been so far strong this spring. This week, outputs
     are mostly steady to up.  There remains a good balance between supplies and orders of milk.
     Class I sales are a bit higher. Manufacturing facilities are running at full schedules. Some
     are even running seven day shifts according to industry players. Fluid milk requests are
     steady in Arizona. Milk yield is higher with the spring flush. Weather conditions remain
     favorable for cows' welfare and improved milk productivity. Handlers are preparing for the
     peak of the spring flush, but do not foresee anything they haven't seen in the past.
     Currently, intakes into Class IV are consistent with scheduled plans. There are a few
     maintenance/repair workloads that are disrupting normal schedules, but all the milk is being
     handled as soon as possible. In New Mexico, milk production increased substantially
     throughout the week. Processing plant intakes are good, and they are able to absorb most of
     the supplies of milk. Nonetheless, holdovers were a bit up as repair and maintenance take
     place and slow down processing schedules a bit at some localities. Class I orders are down
     while Class II and III demands are trending up. Pacific Northwest milk production is
     increasing, but not quite as much as expected for the time of year. Class I demand is solid.
     Milk intakes are in good balance with processing needs and manufacturers have plenty of milk
     to run through their facilities. Wet weather is eliminating some of the pockets of lingering
     dryness and farmers expect plenty of water for spring irrigation needs. Milk production in
     the mountain states of Idaho, Utah and Colorado is strong. Production is slowly increasing
     as the weather turns to spring. Intakes are in good balance with processing needs. Some
     industry contacts say manufacturers taking in a few extra loads of milk and some added
     processing capacity have helped reduce the number of excess loads getting pushed across the
     region. Farmers indicate they do not have many water concerns going into the spring planting
     season. Western condensed skim is available to whomever wants to buy it. Intakes into Class
     IV are steady, but a few more loads are moving to cheese vats. Some condensed skim is moving
     among western states. Cream cheese production is picking up. Churns are actively being run.
     However, cream supplies are starting to tight up. Aside from a few processors who couldn't
     find the volume of cream they needed, cream loads are enough to fill most needs. However,
     prices are firm and increasing. Cream multipliers for all usages are 1.0600-1.2350.

     National Retail Report Dairy ± Fluid Milk Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the
     period of 3/29/19 to 4/4/2019

     Half Gallon, All Fat Tests               Weighted Average Price
     National                          This Period       Last Week      Last Year
      Organic                            $4.33             $4.35          $4.14
      Conventional                       $1.55             $1.85          $2.52

     Regional (Conventional)            Wtd. Ave.           Low            High
      Northwest                          $0.99             $0.99          $0.99
      Southwest                          $2.50             $2.50          $2.50

     Regional (Organic)                 Wtd. Ave.           Low            High
      Northwest                           n.a.              n.a.           n.a.
      Southwest                          $3.52             $2.99          $3.98

     Gallon, All Fat Tests                    Weighted Average Price
     National                          This Period       Last Week      Last Year
      Organic                            $6.99             $6.62          $6.18
      Conventional                       $2.46             $2.88          $3.49

     Regional (Conventional)            Wtd. Ave.           Low            High
      Northwest                           n.a.              n.a.           n.a.
      Southwest                          $2.49             $2.49          $2.49

     Regional (Organic)                 Wtd. Ave.           Low            High
      Northwest                           n.a.              n.a.           n.a.

      Southwest                           n.a.              n.a.           n.a.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0600 - 1.2350


     Information for the period April 1 - 5, 2019, issued weekly

     Secondary Sourced Information:

     Dairy Products Report - Ice Cream, Regular, Hard
     Released April 3, 2019, by the National Agricultural Statistics Service (NASS), Agricultural
     Statistics Board, United States Department of Agriculture (USDA).

     Ice Cream, Regular (Hard) Production ± States and United States: February 2018 and 2019
                                 Monthly Production (1000 pounds)   Percent Change from
     Total Cream, Regular (Hard)  February  January  February        February  January
     Region                           2018     2019      2019            2018     2019
     United States                  55,411   53,551    51,142            -7.7     -4.5

     Atlantic                       12,315   12,815    11,725            -4.8     -8.5
       Pennsylvania                  2,032    2,697     2,127             4.7    -21.1

     Central                        33,140   31,749    29,750           -10.2     -6.3
       Missouri                      3,443    1,852     2,965           -13.9     60.1
       Ohio                          2,039    2,138     1,721           -15.6    -19.5

     West                            9,956    8,987     9,667            -2.9      7.6
       California                    4,762    4,390     4,346            -8.7     -1.0
       Oregon                          944    1,258       980             3.8    -22.1
       Utah                          2,390    1,478     2,294            -4.0     55.2

     Ice Cream, Regular (Hard) ± Cumulative Production January - February
                       Cumulative Production   Percent Change
                           (1000 pounds)            from
     Report Month          2018        2019         2018
     February           110,129     104,693         -4.9

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