Fluid Milk and Cream Review - West
USDA - Thu Feb 07, 10:38AM CST
MD_DA240

     Fluid Milk and Cream - Western U.S.

     Report 6 - Released on February 07, 2019

     Milk output throughout California is mostly stable and milk processing levels are unchanged
     from a week ago. Class I sales are steady. California hay quality is being affected by
     unsettled weather outcomes. In the Imperial Valley, the first cutting of alfalfa hay is
     scheduled to take place in the coming two to three weeks, and farmers expect stronger export
     demand. Demand from Saudi Arabia will likely increase because of restrictions on irrigation
     water usage for alfalfa farms in this country. Dairy farmers in California are waiting to
     see how the hay prices will change in the coming months. Milk output in Arizona is flat to
     increasing as comfortable weather conditions are giving an extra boost to cows�
     productivity. Processing facility managers are running their plants at full or near full
     capacity and are content with the loads of milk available to them. Bottled milk demand has
     not much fluctuated from last week�s volumes. Class VI usages remain strong as producers opt
     to make more butter instead selling their cream at a discount. Although milk production is
     lower in New Mexico this week, milk loads available to buyers are higher than usual. This is
     because some Class III customers reduced their pre-ordered volumes during the week. Handlers
     were quick to find ways to push more milk to other Class III processing facilities to clear
     out some loads. Class I and II orders are both down. Milk production in the Pacific
     Northwest is steady. Areas of Washington and Oregon had snowfall early in the week and may
     get more accumulation this weekend. While snow and colder temperatures tend to stymie milk
     production somewhat, the moisture is welcome in the region that has been dry through much of
     the winter. Bottling demand continues at typical seasonal patterns. In the mountain states
     of Idaho, Utah and Colorado, milk production is steady. Manufacturers report intakes are in
     generally good balance with processing needs and there are only a few discounted loads
     getting pushed into neighboring states. Industry contacts say some cooperatives are
     projecting milk needs ahead of the spring flush and discussing with members the need to
     curtail milk production. Cream availability remains strong in the West. Nonetheless,
     according to a few market participants, more cream is moving through contracts and the
     volumes of cream in the spot market have slightly decreased. Butter processors are still
     taking advantage of favorable cream prices to churn more butter. Cream multipliers are 1.00
     -1.17, unchanged from a week ago.

     National Retail Report Dairy � Fluid Milk Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 2/01/2019
      to 2/07/2019

     Half Gallon, All Fat Tests Weighted Average Price
     National                This Period   Last Week  Last Year
      Organic                   $3.63        $3.98      $3.96
      Conventional              $2.46        $1.00      $1.27

     Regional (Conventional)   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                 $3.99        $3.99      $3.99
      Southwest                 $3.33        $2.49      $3.99

     Gallon, All Fat Tests Weighted Average Price
     National                This Period   Last Week Last Year
      Organic                   $6.01        $6.85      n.a.
      Conventional              $2.65        $2.65      $2.88

     Regional (Conventional)   Wtd. Ave.      Low       High
      Northwest                 $1.99        $1.99      $1.99
      Southwest                 $2.49        $2.49      $2.49

     Regional (Organic)        Wtd. Ave.      Low       High
      Northwest                 $5.00        $5.00      $5.00

      Southwest                  n.a.         n.a.       n.a.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0000 - 1.1700


     Information for the period February 4 - 8, 2019, issued weekly

     Secondary Sourced Information:

     Dairy Products Report - Ice Cream, Regular, Hard
     Released February 4, 2019, by the National Agricultural Statistics Service (NASS),
     Agricultural Statistics Board, United States Department of Agriculture (USDA).

     Ice Cream, Regular (Hard) Production � States and United States: 2017 and 2018
                                     Monthly Production (1000 pounds)    Percent Change from
     Total  Cream, Regular (Hard      November     October  November      November    October
     Region                               2017        2018      2018          2017       2018
     United States                      49,618      59,756    51,921           4.6      -13.1

     Atlantic                           12,541      14,815    13,072           4.2      -11.8
       Pennsylvania                      3,847       3,353     3,830          -0.4       14.2

     Central                            27,447      33,966    29,268           6.6      -13.8
       Missouri                          1,631       2,465     2,279          39.7       -7.5
       Ohio                              1,934       2,247     2,005           3.7      -10.8

     West                                9,630      10,975     9,581          -0.5      -12.7
       California                        5,238       5,367     4,468         -14.7      -16.8
       Oregon                              778       1,091       984          26.5       -9.8
       Utah                              1,701       2,316     2,130          25.2         -8

     Ice Cream, Regular (Hard) � Cumulative Production January - November
                       Cumulative Production   Percent Change
                           (1000 pounds)            from
     Report Month          2017        2018         2017
     November           716,142     689,157         -3.8
     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: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (MyMarketNews): https://mymarketnews.ams.usda.gov/
     DMN Database Portal: https://www.marketnews.usda.gov/mnp/da-home