Fluid Milk and Cream — Western U.S.
In California, milk output is flat and below peak levels. However, it is enough to meet the needs of buyers. Bottlers are still actively taking milk, but have reduced their intakes with the closing of some schools for the summer. Over the Memorial Day weekend, more milk will be going to balancing facilities as some Class II and cheese plants will be closed. Arizona milk production is steadily falling. Milk volumes are not always enough to meet the needs of processing plants, therefore some of them are getting additional loads from California and other surrounding states. Class I sales are steady to declining compared to last week. Class II usage is active. In New Mexico, milk supplies available for processing are higher due to a decline of total intakes. Class I, II and III inquiries have shrunk somewhat. With the closing of some schools and the Memorial Day weekend coming soon, milk orders from plants are declining after strong intakes for some of them at the beginning of the week. Planned repair and maintenance workloads are also impacting milk inquiries. Nonetheless, handlers are not concerned as they are able to keep holdovers at stable levels through the routing of milk to some balancing facilities. Pacific Northwest milk production continues to grow, but any growth is seemingly leveling off as spring turns to summer. Processors report many of the plants are full. Schools are close to the end of the year, and with the upcoming Memorial Day weekend, milk handlers expect a little more milk that they will need to maneuver into processing homes. Handlers do not expect any major issues over the holiday and have planned for this annual occurrence ahead of time. Milk production in the mountain states of Idaho, Utah and Colorado remains strong. There are a few distressed loads floating around the region at $4 under Class. Industry contacts say with the holiday weekend, the discounts may increase slightly and it may make a bit more challenging to find a home for all the milk. However, handlers also note they expect the system to rebalance quickly. According to contacts, condensed skim demand is good, especially the demand going to ice cream manufacturing. Nonfat dry milk makers are also actively taking loads. In the West, there is a slight softening in the cream sales compared to the previous week. This could be due to the Memorial Day weekend. However, cream multiples have increased at the top of the range to 1.23. National Retail Report Dairy ± Fluid Milk Summary Advertised Prices at Major Retail Supermarket Outlets ending during the period of 5/17/2019 to 5/23/2019 Half Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Organic $4.62 $4.02 $4.00 Conventional $2.12 $1.89 $2.04 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 n.a. n.a. n.a. Southwest $4.99 $4.99 $4.99 Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Organic $6.99 $6.29 $5.60 Conventional $2.91 $2.56 $2.56 Regional (Conventional) Wtd. Ave. Low High Northwest $1.99 $1.99 $1.99 Southwest $2.79 $2.69 $2.98 Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.0900 - 1.2300 Information for the period May 20 - 24, 2019, issued weekly Secondary Sourced Information: The NASS Milk Production report noted April 2019 milk production in the 23 selected states was 17.4 billion pounds, 0.3 percent above a year ago. Milk cows in the 23 selected states totaled 8.71 million head, 55,000 head less than a year ago. The following table shows western states included in the report and the monthly milk production changes compared to a year ago: April 2019 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Arizona 427 - 4.7 California 3542 + 2.6 Colorado 392 + 3.7 Idaho 1262 + 2.2 New Mexico 695 - 3.9 Oregon 213 + 0.9 Utah 188 - 2.6 Washington 560 -