Western U.S. milk and cream report – eDairyNews
United States |27 mayo, 2019

Milk | Western U.S. milk and cream report

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               -
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