Fluid Milk and Cream — Western U.S.
In California, milk supplies are tighter than in the previous week. Some processors report not finding enough in-state milk to run their plants at full capacity. A few of them say that it is harder to bring in out-of-state milk to meet processing obligations. As the result, they are only using what’s available to them within the state. Bottled milk sales are steady, whereas Class II demands are increasing.
Milk production is stable to declining in Arizona. This is helping handlers take a break from the busy production schedules that happened recently. Manufacturers are content with the milk volumes available to them. Dairy plants are still actively running, but not as full as in the past weeks. No milk is going out of state for processing. Class I demands are flat.
In New Mexico, Class I sales are trending down, whereas Class II demands are up. Class III intakes are steady to slightly up compared to a week ago. Milk yield is stable and balancing needs have declined because customers are taking all the milk handlers have. There was an issue with a machine at one processing plant, but that did not affect milk processing schedules in New Mexico. No surplus milk was reported in the state and holdovers are at normal levels.
Pacific Northwest milk production is leveling off amid the seasonal spring flush. Dairy processors, cooperatives and farmers are all working hard to keep milk in good balance with processing needs. Ice cream and other Class II processors are pulling healthy volumes of milk and cream. Manufacturers are running near full capacity and have plenty of milk for their needs. Bottling demand is steady.
Milk production in the mountain states of Idaho, Utah and Colorado is still heavy. While the amount of discarded or heavily discounted milk has lessened over the last few weeks, industry contacts report there are still discounted milk loads available at $4 under Class IV. In addition, a few loads of milk are traveling several states away to find processing homes. Most manufacturers are running at or near full capacity.
In the West, condensed skim stocks are balanced with sales. Demands are unchanged from a week ago. Cream, although available in the West, has tightened up in recent weeks.
Cream intakes for ice cream production continue to increase. Many butter makers can’t afford to buy cream in the spot market due to higher prices. Cream multiples for all Classes have increased at the bottom of the range, but declined at the top.