Fluid Milk and Cream Review - West
USDA - Thu Mar 08, 10:56AM CST

     Fluid Milk and Cream - Western U.S.

     Report 10 - Released on March 08, 2018

     Throughout the state of California, farm milk production is steady this week. Milk continues
     to move out of state as some plants work on repair and maintenance issues. Due to the
     addition of a new plant in the state, a few processors report that some of their dairies are
     sending milk to the new plant. However, they still have more than enough milk for processing
     needs. Milk volumes are plenteous in the spot market. Class 1 intakes remain flat. Arizona
     milk supplies available for processing are ample. Manufacturers are worried that they might
     not have enough processing capacity for the spring flush milk outputs. Fluid milk demand
     from grocery stores and schools holds steady. Demand for other Classes of milk to fill
     contractual needs seems steady. Nonetheless, some plant managers have to take more loads of
     milk to help clear out excess milk. In New Mexico, farm milk production is trending slightly
     up. However, repair/maintenance workloads are affecting intakes for the different Classes of
     milk. Class I intakes are following normal patterns. Class II sales are slightly down. Class
     III demand varies by plants within the region. Milk is also clearing out of the state to
     help with processing. Pacific Northwest milk production continues to follow seasonal
     patterns. Milk intakes are in good balance with processing needs and there are sufficient
     volumes of milk. Bottling demand is steady. Some industry contacts report ice cream
     manufacturers are ramping up production runs. In the mountain states of Idaho, Utah and
     Colorado, milk production is stable, but in some places output exceeds available processing
     capacity. A few industry contacts report discounted spot loads are readily available and
     some milk is getting shipped into neighboring states. Regional processors are running at or
     near capacity. Farmers are bird-dogging reservoir and snow pack levels as they begin to plan
     for the next cropping season. Currently, contacts suggest reservoir levels are in pretty
     good shape, however snow pack is less than normal, especially in some Southern parts of the
     region. Available water only adds to the concern, as some farmers are faced with the
     possibility of not having a market for their milk in the months to come. As more milk is
     available in the West, so is condensed skim. Most of the condensed skim is clearing to
     nonfat dry milk. Processors report a lack of adequate processing capacity in some areas.
     Cream inventories remain bountiful in the West. Multiples vary greatly from state to state,
     ranging from flat to 1.23. According to the DMN National Retail Report-Dairy for the week of
     March 2-8, the national weighted average advertised price for one gallon of milk is $2.87,
     up $0.10 from last week, but down $0.24 from a year ago. The weighted average regional price
     in the Southwest is $2.43 with a price range of $1.99-$2.79. The weighted average regional
     price in the Northwest is $1.59 with a price range of $.99 -$1.99.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0000 - 1.2300

     Information for the period March 5 - 9, 2018, issued weekly

     Secondary Sourced Information:

     According to the NASS Dairy Products report, hard ice cream production in the West region
     for January 2018 is 11.2 million gallons, 20.9 percent lower than a month ago, and 21.6
     percent below the previous year. The February 4a price (butter/powder) in California is
     $12.72, down $0.21 from the previous month, and $2.68 lower from a year ago. This compares
     to the Federal Order Class IV price of $12.87 for February. The February 4b price (cheese)
     is $13.38, up $0.01 from the previous month, but $2.43 lower from a year ago. This compares
     to the Federal Order Class III price for February at $13.40.
     Published by:
     Dairy Market News - Madison, WI
     Florence Kone-Gonzalez, (608)422-8594
     Email: Florence.KoneGonzalez@ams.usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602

     DMN Website: http://www.ams.usda.gov/market-news/dairy
     DMN Database Portal: http://www.marketnews.usda.gov/mnp/da-home