Fluid Milk and Cream - Western U.S.
California milk output continues on an increasing tone. According to some industry contacts, production is stronger than usual. Fluid milk sales are back up with schools being back in session.
Most manufacturing plants are running at full capacities, clearing as much milk as possible.
Arizona bottled milk orders bounced back up after the holiday. Class II sales are very low as requests from customers have slowed down. This week, farm milk production is heavy, but remains below last year's volumes. Therefore, processing plants are running full time to ensure that all the milk is taken care of. Milk loads are manageable across the state.
In New Mexico, milk production is down. Class II and III demands have decreased. However, Class I sales moved up as educational institutions reopened and are refilling their pipelines. More milk is moving to the Southeast this week; however, it has not reached the pre-holiday volumes.
Milk production in the Pacific Northwest is strong. Bottling demand is steady, and there is plenty of milk available for processing. Manufacturers can find extra loads of milk and cream, but in some cases, trucks are harder to find.
The balance between milk intakes and production ebbs and flows in the mountain states of Idaho, Utah and Colorado. Industry contacts say, currently production and demand are in good balance. Even amid strong seasonal milk production, manufacturers are taking in heavy volumes. In some cases, manufacturers are running 7 days per week. Although the boost in processing activity helps ease some of the stress within the regional dairy industry, there is still considerable financial stress prevalent within the farms of the region.
Cream churning is very active in the West as many processors of cream-based products reduced their intakes, and cream availability is strong. Some handlers are looking for additional capacities to clear their cream, but many manufacturing facilities do not have the space to help. Due to heavy cream supplies during the holiday, a few plants are currently behind schedules on clearing their cream. Due to an urgent request for cream that needed to be fulfilled on a short notice, cream multiples for all Classes moved up, ranging 1.00 to 1.26.
However, most sales are in the range of 1.00-1.15. According to some market players, condensed skim sales are strong. Loads are changing hands amongst some western states. However, prices seem to be a little higher than usual. Supplies are available to satisfy the needs of all customers.
National Retail Report Dairy ± Fluid Milk Summary Advertised Prices at Major Retail Supermarket Outlets ending during the period of 1/4/2019 to 1/10/2019 Half Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Organic $3.91 $3.88 $3.79 Conventional $2.46 $1.18 $2.83 Regional (Conventional) Wtd. Ave. Low High Northwest $1.99 $1.99 $1.99 Southwest n.a. n.a. n.a. Regional (Organic) Wtd. Ave. Low High Northwest $3.99 $3.99 $3.99 Southwest $4.99 $4.99 $4.99 Gallon, All Fat Tests Weighted Average Price National This Period Last Week Last Year Organic $6.18 $4.99 $5.83 Conventional $2.50 $2.43 $3.01 Regional (Conventional) Wtd. Ave. Low High Northwest $1.99 $1.99 $1.99 Southwest $1.99 $1.99 $1.99 Regional (Organic) Wtd. Ave. Low High Northwest n.a. n.a. n.a. Southwest n.a. n.a. n.a. Regional (Organic) Wtd. Ave. Low High Northwest n.a. n.a. n.a. Southwest n.a. n.a. n.a. Western U.S., F.O.B. Cream Multiples Range - All Classes: 1.0000 - 1.2600