Fluid Milk and Cream — Western U.S.

Oct. 28

Milk supplies in California are said to be in good balance with dairy processor needs. Farm level output is level to higher. Bottling demand is steady. Class II and Class III sales are unchanged.

Arizona milk production is level to higher. Bottling sales are lower. Cheese production is active, and Class III orders are steady.

Milk output is increasing in New Mexico. Class I sales are lower, but Class II and III demand is strong. Balancing operations and cheesemakers are keeping busy production schedules to work through steady milk supplies.

Some contacts are reporting a little milk tightness in the Pacific Northwest. Washington’s output remains less than some handlers had forecast. Bottling demand is steady, but short staffing at some bottling plants is contributing to reduced hours of operation. Class II and III sales are steady.

Milk output is increasing in the mountain states of Idaho, Utah and Colorado. Bottling orders are lower. Class II demand is steady, and Class III demand is higher. Contracted condensed skim is steady. Volumes of cream were left without an outlet after an incident rendered a dairy company unable to receive or process deliveries this week. Stakeholders have worked to reallocate this cream, but some report that this has been a little tricky as Western cream-based manufacturers are already working around a recent butter plant fire, hauler shortages, and labor-related operating challenges.

Despite these complications, holiday production is ramping up for butter, dips, and whips. Western cream multiples shifted higher this week.

PACIFIC NORTHWEST MARKET ORDER: Milk delivered to the Pacific Northwest Order 124 totaled 567.3 million pounds in September 2021. Class I utilization was 135.5 million pounds and accounted for 23.88 percent of producer milk. The uniform price at test was $18.64, up $0.87 from August 2021, and up $1.86 from the same month a year ago.

ARIZONA MARKET ORDER: Milk delivered to the Arizona Order 131 totaled 362.6 million pounds in September 2021. Class I utilization was 118.4 million pounds and accounted for about 32.65 percent of producer milk. The uniform price at test was $17.86, up $0.35 from August 2021, and up $1.64 from the same month a year ago.

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