Fluid Milk and Cream — Western U.S.

June 6

     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

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