Fluid Milk and Cream — Western U.S.
In California, milk production is seasonally increasing, aided by adequate temperature for cows’ well-being. Class I milk is moving steadily to the different channels. Class II requests have somewhat declined.
In Arizona, there is plenty of milk available to whoever needs it. Processors are preparing for the spring flush period. Meanwhile, milk output is steady to up. Fluid milk sales are unchanged from a week ago.
In New Mexico, milk production has picked up to levels higher than usual for this time of the year. In addition, recent snowstorms have delayed milk deliveries to customers. Consequently, milk holdovers are higher than expected. There were no repair or maintenance projects scheduled this week, so holdovers, though high, were manageable. Class I, II, and III intakes have all augmented, which has helped with milk clearing.
Pacific Northwest milk production is keeping manufacturing facilities filled to the brim. Bottling demand is steady, but strong milk intakes are placing a strain on processing facilities. A few dairy contacts are contemplating strategies to curtail the heavy milk output.
In the mountain states of Idaho, Utah and Colorado milk is abundant. Comfortable winter weather has kept milk output strong.
Industry contacts in Idaho say a lot of milk is moving out of state. The heavy supplies are creating a ripple effect across the milk shed. Milk handlers are sometimes discounting loads by as much as $6 under Class IV to make room for the loads in the region. Other loads are moved out of state at prices that cover only a little more than the cost of shipping. Some industry contacts speculate that there has been some milk that has had to be discarded, because there was nowhere to go with it.
Condensed skim supplies are on the rise due to increased milk yield in the West. Drying schedules are more active. There is plenty of cream available in the West. Many loads continue to clear through the churns. Freight costs are restricting the movement of cream in some areas. Discounted loads of cream were available in the spot market because of the breakdown of one processing machine.