Fluid Milk and Cream — Western U.S.

Aug. 15

Milk production has increased a bit in California. While Class III sales are up, Class I
     orders are mixed. Bottling orders have picked up in some areas as pipelines are being filled
     for the new school session. Milk offers are in good balance with overall demand. In Arizona,
     milk output is steady because the low level of humidity is helping keep dairy cows
     comfortable. Bottled milk requests are flat. Class II sales remain active. Processing plants
     are running slightly below capacities. Some milk is coming from other states to supplement
     processing needs in Arizona. Class I milk demand has improved in New Mexico as educational
     institutions have reopened their doors after the summer break. Milk production is close to
     last week's volumes. Supplies are moving to the different processing plants without any
     major issue. However, milk components have slightly declined in recent weeks. In the Pacific
     Northwest, milk production continues to fill most processing needs. Favorable weather has
     provided great cow comfort and milk intakes are strong. Bottling demand is steady with most
     school starts still a few weeks away. Manufacturing facilities are running at or near
     capacity. Milk production in the mountain states of Idaho, Utah and Colorado is strong.
     While milk intakes are steady to lower in the southern parts of the region, milk output in
     Idaho has not let up much. So far, the summer weather has done little to suppress milk
     volumes. Manufacturing facilities are running at or near full capacity. Bottling for
     educational institutions has started with many public schools starting sessions in the next
     week. Condensed skim supplies are unchanged from last week. Drying schedules remain active.
     The cream market is still strong. Ice cream makers remain some of the principal cream
     buyers. Industry contacts report that more eastern and midwestern buyers are coming to the
     West in the quest for cream. Cream multiples are the same as a week ago.

     National Retail Report Dairy ± Fluid Milk Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the
     period of 8/9/19 to 8/15/2019

     Half Gallon, All Fat Tests         Weighted Average Price
     National                    This Period   Last Week   Last Year
     Conventional                   $2.03        $2.27       $2.45
     Organic                        $4.07        $3.61       $3.89

     Regional (Conventional)      Wtd. Ave.       Low         High
     Hawaii                         $3.99        $3.99       $3.99
     South Central                  $1.81        $1.66       $1.89

     Regional (Organic)           Wtd. Ave.       Low         High
     Northwest                      $3.49        $3.49       $3.49
     Southwest                      $4.99        $4.99       $4.99

     Gallon, All Fat Tests              Weighted Average Price
     National                    This Period   Last Week   Last Year
     Conventional                   $2.79        $3.16       $3.33
     Organic                        $6.22        $5.11       $6.85

     Regional (Conventional)      Wtd. Ave.       Low         High
     Northwest                     $1.99         $1.99       $1.99
     Southwest                     $2.82         $2.69       $2.98

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.1600 - 1.3200

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