Fluid Milk and Cream — Western U.S.

May 27

Milk is steady and flat in California. Class I orders are down, but Class III demand is increasing. A drought emergency has been declared in 41 of California’s 58 counties. There are some reports of dairy farmers fallowing fields that would have been used to grow feed and focusing available water on other, more permanent, crops.

Conditions vary by farm, however, and milk production does not yet appear to be significantly impacted.

In Arizona, milk production and Class I demand are steady. In addition to local milk, dairy manufacturers with available capacity have also been working through a steady supply of out of state milk.

Milk output in New Mexico is flat. Class I and II demand are down a little.

Milk is heavy in the Pacific Northwest. Double-digit overbase programs are working to help keep the abundance in check. Class I demand is level, and some bottling plants are operating at capacity.

Weather is favorable for cow comfort in the mountain states of Idaho, Utah and Colorado, and milk production is strong. Bottling orders are flat. Class III sales are healthy. Contracted condensed skim is steady, and limited spot loads are available around flat class pricing.

Available cream supplies are meeting dairy manufacturing demands. Butter production is seasonally lower, but generous volumes of cream are being absorbed by active ice cream and cream cheese production. This week, cream multiples dropped one point at the top of the range.

PACIFIC NORTHWEST MARKET ORDER: Milk delivered to the Pacific Northwest Order 124 totaled 610.7 million pounds in April 2021. Class I utilization was 137.8 million pounds and accounted for 22.6 percent of producer milk. The uniform price was $16.28, up $1.13 from March 2021, and $3.13 above the same month a year ago.

ARIZONA MARKET ORDER: Milk delivered to the Arizona Order 131 totaled 351.6 million pounds in April 2021. Class I utilization was 113.7 million pounds and accounted for about 32.3 percent of producer milk. The uniform price was $16.43, up $0.88 from March 2021, and $3.10 above the same month a year ago.

CALIFORNIA MARKET ORDER: Milk pooled on the California Order 51 totaled 1.913 billion pounds in April 2021. Class I utilization was 406.7 million pounds and accounted for about 21.3 percent of producer milk. The uniform price was $15.91, up $1.06 from March 2021, and $2.97 above the same month a year ago.