Fluid Milk and Cream — Western U.S.

April 18

     In California, although milk output is strong, it is trending below last year's levels
     according to market participants. Class I demand is a bit higher this week. Milk processing
     is either at full capacities or close to it. Plant managers are in control of milk supplies
     management within their areas, so they are not sending any loads into neighboring regions
     for processing. In Arizona, milk production is still lower than usual for this time of the
     year, but has picked up from previous weeks. Weather, though warming up, is still
     comfortable for cows. The handling of all the milk loads produced is taking place within the
     state as manufacturers have enough room to do so. Nonetheless, their schedules are full.
     Bottlers' milk intakes are steady. More of the holiday dairy items production were
     prioritized over other dairy products in past weeks. Class III sales are the most prevalent
     in the state of New Mexico right now. While cheese vats are being actively run, Class I and
     Class II demands have weakened a bit. Except for a few last-minute orders, most of the
     holiday Class II milk needs have been satisfied. Milk yield is about the same as last week.
     Most disruptions to normal activities that occurred last week at a few dairy facilities have
     been taken care of. Pacific Northwest milk production is creeping higher. Industry contacts
     are anticipating a flood of milk, but so far, the seasonal spring flush has yet to appear.
     Bottling demand is steady, and manufacturers have plenty of milk available. Likewise, cream
     supplies are available, but not overwhelming. Contacts say ice cream manufacturers are not
     waiting for summer-like weather to ramp up, but instead are slowly increasing activities.
     Milk production in the mountain states of Idaho, Utah and Colorado is increasing. Some
     contacts suggest intakes are growing faster in southern reaches of the region than in the
     north. Milk supplies can fill most processing needs. Some loads of milk are moving within
     the region, but few, if any, are leaving the region in the search for a processing home.
     Several reports suggest that condensed skim is selling well based on contractual agreements
     while at the same time many spot requests are also coming in. Prices are in the normal
     range. Large volumes of condensed skim are moving to ice cream and cheese plants. Cream
     sales are still high, but not as high as in the preceding week. Ice cream continues to pull
     in more cream, taking some loads away from the churns. Cream supplies have declined over the
     last few weeks. However, there was a slight decline at the top of the range for all Classes
     cream multipliers.

     National Retail Report Dairy ± Fluid Milk Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the
     period of 4/12/19 to 4/18/2019

     Half Gallon, All Fat Tests                   Weighted Average Price
     National                          This Period       Last Week      Last Year
      Organic                            $4.11             $4.20          $3.60
      Conventional                       $2.19             $2.03          $2.28

     Regional (Conventional)            Wtd. Ave.           Low            High
      Northwest                           n.a.              n.a.           n.a.
      Southwest                          $1.99             $1.99          $1.99

     Regional (Organic)                 Wtd. Ave.           Low            High
      Northwest                          $2.50             $2.50          $2.50
      Southwest                          $3.99             $3.99          $3.99

     Gallon, All Fat Tests                        Weighted Average Price
     National                          This Period       Last Week      Last Year
      Organic                             n.a.             $6.41           n.a.
      Conventional                       $2.74             $2.40          $2.35

     Regional (Conventional)            Wtd. Ave.           Low            High
      Northwest                          $2.51             $1.79          $2.99
      Southwest                           n.a.              n.a.           n.a.

     Western U.S., F.O.B. Cream

     Multiples Range - All Classes:               1.0600 - 1.2300

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