Fluid Milk and Cream — Western U.S.

Aug. 29

In California, milk output is flat. Supplies are adequate for current sales. However, they
     are expected to increase during the Labor Day holiday as many processing facilities will be
     closed. Meanwhile, fluid milk demand is steady to a bit up, whereas Class II sales are
     steady. Arizona milk yield has increased a bit this week. Out-of-state milk is still being
     used to complement processing needs as in-state supplies are not sufficient. Handlers
     continue to take their usual loads of milk. Class I sales are steady to down as educational
     institutions prepare to close for the holiday. In New Mexico, more milk is going to
     balancing plants this week. Milk output has bounced back from last week's decline. Class I
     sales are steady, but Class II demand decreased. Overall, Class III requests are trending
     higher despite reduced intakes from some cheese producers. Handlers are looking to increase
     their hauling capacities, so they can move some milk to other localities. Industry contacts
     in the Pacific Northwest suggest milk production has reached the peak and is starting to
     back off. Milk volumes may be a little less, but components have been running strong.
     Bottling demand has stepped higher with many schools starting fall terms next week.
     Manufacturers have plenty of milk for processing needs. Milk production in the mountain
     states of Idaho, Utah and Colorado remains strong. The school milk pipelines have filled,
     and manufacturers have plenty of milk available for processing. Most of the milk can find a
     home nearby, but some milk is getting heavily discounted in Idaho in order to get placed
     into surrounding regions. The condensed skim market conditions are mostly steady, with no
     major changes reported in inventories. Sales have declined. Cream is more available in the
     West this week. With the Labor Day holiday near the corner, cream demand has decreased.
     Nonetheless, supplies are still balanced with demand. Cream multiples have backed down,
     ranging from 1.05-1.31.

     National Retail Report Dairy ± Fluid Milk Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the
     period of 8/23/19 to 8/29/2019

     Half Gallon, All Fat Tests         Weighted Average Price
     National                    This Period   Last Week   Last Year
     Conventional                   $2.30        $2.01       $2.67
     Organic                        $3.90        $4.09       $3.77

     Regional (Organic)           Wtd. Ave.       Low         High
     Northwest                      $3.99        $3.99       $3.99

     Gallon, All Fat Tests              Weighted Average Price
     National                    This Period   Last Week   Last Year
     Conventional                   $2.53        $2.96       $3.00
     Organic                        $5.79        $4.99        n.a.

     Regional (Conventional)      Wtd. Ave.       Low         High
     Northwest                      $1.99        $1.99       $1.99
     Southwest                      $2.67        $1.99       $2.98

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0500 - 1.3100

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