Fluid Milk and Cream — Western U.S.
In California, milk volumes off the dairy farms are steady this week. Class I demand is down across most parts of the state, but Class III orders are improving. Contacts state that selling some loads of milk to neighboring states helped in keeping milk volumes in good balance. Milk production in Arizona is unchanged from a week ago. The weather has not lately impacted milk output. A few churns have stopped butter production in recent days and have opted to sell their cream. Bottled milk sales are almost at the same levels as a week ago. Milk volumes going to balancing plants are manageable. There is also a good stability between milk yield and supplies. New Mexico milk output is steady and in line with the normal seasonal production trend. Class I, II, and III sales have all declined this week, partly due to repair and maintenance works that induced slowdowns in the activities of a few plants. Class IV demand has increased a bit, helping with milk volume management. Pacific Northwest milk intakes remain heavy as much of the region is at or near the peak of spring flush. Pleasant weather has been conducive to cow comfort; however, some weather forecasts predict heat to build into the region next week. Industry contacts say there is plenty of milk available for processing needs. A few discounted loads are available, but manufacturers have what they need within their own milk sheds. Bottling demand is easing back as schools end their terms for the year, and the focus shifts from school lunch and milk programs to summer meal programs. Milk production in the mountain states of Idaho, Utah and Colorado is heavy. Manufacturers have the milk needed for most processing needs, even as a few loads move around the region at discounts of $4 under Class. Industry contacts relay that production may be at the zenith for southern parts of the region, but flush is typically a few weeks later in Idaho. Western condensed skim is available to customers. However, most of it is contracted. Prices are steady. Cream supplies continue to tighten as the temperatures in most western locations increase. Cream is accessible to buyers, but they can't find it at cheaper prices. Ice cream production is taking on more cream. Cream multipliers for all Classes are 1.10-1.25. National Retail Report Dairy ± Fluid Milk Summary Advertised Prices at Major Retail Supermarket Outlets ending during the period of 5/31/19 to 6/6/2019 Half Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Organic $3.90 $4.26 $3.92 Conventional $1.54 $2.86 $1.47 Regional (Organic) Wtd. Ave. Low High Northwest $3.99 $3.99 $3.99 Southwest $2.79 $2.79 $2.79 Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Organic $5.99 $6.08 $5.40 Conventional $2.38 $2.80 $3.01 Regional (Conventional) Wtd. Ave. Low High Northwest $1.99 $1.99 $1.99 Southwest $2.52 $1.99 $2.69 Regional (Organic) Wtd. Ave. Low High Southeast $5.99 $5.99 $5.99 Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.1000 - 1.2500 Information for the period June 3 - 7, 2019, issued weekly Secondary Sourced Information: Dairy Products Report - Ice Cream, Regular, Hard Released June 4, 2019, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). Ice Cream, Regular (Hard) Production ± States and United States: April 2018 and 2019 Monthly Production (1000 pounds) Percent Change from Total Cream, Regular (Hard) April March April April March Region 2018 2019 2019 2018 2019 United States 62,821 65,449 63,180 0.6 -3.5 Atlantic 14,227 14,235 13,908 -2.2 -2.3 Pennsylvania 3,249 3,345 3,649 12.3 9.1 Central 36,640 39,757 37,381 2.0 -6.0 Missouri 3,193 3,403 3,020 -5.4 -11.3 Ohio 2,513 2,010 2,099 -16.5 4.4 West 11,954 11,457 11,891 -0.5 3.8 California 5,606 5,978 5,888 5.0 -1.5 Oregon 1,369 1,317 1,464 6.9 11.2 Utah 2,854 1,927 2,225 -22.0 15.5 Ice Cream, Regular (Hard) ± Cumulative Production January - April Cumulative Production Percent Change (1000 pounds) from Report Month 2018 2019 2018 April 235,505 234,300 -0.5