Fluid Milk and Cream — Western U.S.

Aug. 20

Milk production is steady to strong in California. Processing schedules remain busy, and in some instances, some processors are limited regarding how much milk they can sell. Bottled milk demands are unchanged from last week. Class II intakes are flat to trending down.

In Arizona, temperatures remain hot with a few rainy days. Milk outputs are in good equilibrium with demands. Processors are careful about how much milk they are getting from out of state. Class I requests are stable. Class II demands are steady to slightly lower, whereas Class III sales are trending down.

In New Mexico, milk production is unchanged from a week ago despite the heat. Holdovers are steady. Bottled milk and Class II sales moved up a bit, but Class III demands are lower. Schools have reopened this week, but teaching is mostly done remotely. However, a few loads of milk are clearing through the school meal plan. There is a good balance between production and supplies of milk.

While the region has had some hot weather, industry contacts say milk production in the Pacific Northwest is strong. The heat has suppressed output and components in a few pockets of the region, but this has not affected manufacturing. Milk intakes are in good balance with processing needs. Bottling demand is steady. Cream supplies are available, but handlers suggest it is taking more jostling around to place the cream where needed.

Milk production in the mountain states of Idaho, Utah, and Colorado is strong. According to the NASS Milk Production report, milk production continues to grow year over year in Idaho and Colorado. Those states have added more cows to the milk herd since 2019. Industry contacts report spot milk is still available in Idaho at $4 under Class IV.

In the West, condensed skim intakes for ice cream production are mixed. In some cases, spot sales are slightly up as a few customers are requesting more spot loads. Western cream supplies are slowly increasing. Some manufacturers have started to produce more butter instead of selling cream at a loss. Others are looking for out-of-state sale outlets to clear some cream. Ice cream makers are decreasing their intakes. Cream multiples for all Classes are stable.

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