Fluid Milk and Cream — Western U.S.
In California, farm milk production had plateaued as the climate has been atypically warmer for cows.
However, nighttime is longer and temperatures supportive of cow recovery. As noted by some contacts, the fat and protein components in the milk continue steadily improving.
Some cheese processors are helping to clear heavy milk intakes, operating at full capacity.
Milk shipments into Class I are higher, driven by hearty demands from the retail sector.
In Arizona farm milk outputs are steady from last week. With schools opening full time, Class I sales are ramping up. Large volumes of milk are moving into Class III encouraged by government purchases and a hearty demand from pizzerias.
In New Mexico, milk production is slightly up. Ample milk supplies are keeping balancing plants running at or near full capacity. Milk requests from bottlers are slightly higher as eggnog production is more active at this time of the year.
Milk production in the Pacific Northwest is steady to lower as the region nears the cyclical low point for the year. However, manufacturers report having no issues getting the milk needed for processing. Cooler weather has issued into the region, but this has had little to no impact on cow comfort. Bottling demand remains relatively steady.
In the mountain states of Idaho, Utah, and Colorado, milk production is strong. According to the NASS Milk Production Report issued earlier this week, September milk production increased by 7.8 percent in Colorado and 2.9 percent in Idaho from last year. In both cases, cow numbers and milk production per cow have increased.
Manufacturers are running facilities at or near full capacity. Some processors report being able to get spot loads of milk for $4 under Class IV. Fires are still an issue in Colorado, threatening some farms and forage supplies. Snow and colder temperatures are forecast for the weekend, which should greatly help contain the fires.
Throughout the west region, large volumes of condensed skim milk continue clearing into seasonal ice cream making, as well into dryers. Seasonal competition for western cream between butter churners and Class II processors is taking shape.
This week, cream multiples are steady to slightly up, ranging from 1.05 to 1.28.