Fluid Milk and Cream Review - West
USDA - Thu Nov 09, 10:57AM CST

Madison, WI November 9, 2017 (REPORT 45)

In California, an incident at a cheese plant caused spot milk 
availability to increase. As so, spot prices are temporarily lower in 
some areas. This week, milk production is mixed with reports of 
increasing and decreasing outputs. Some manufacturers have 
maintenance/repair workloads that reduced their processing 
activities. Class 1 intakes are steady this week. Milk output in 
Arizona is increasing, as the weather condition gets cooler. Some 
processing plants are planning their production schedules for the 
fall and winter. They anticipate that production will further 
increase and are looking for additional processing plants to help 
balance their milk as needed. A few manufacturers are doing their 
routine maintenance work to make sure that they are ready for 
Christmas processing activities. Sales into Class I are stable. In 
New Mexico, some cheese plants are unable to take their full daily 
loads because of repair/maintenance issues. Consequently, milk 
holdovers have increased. Handlers are redirecting the excess milk 
supplies to other processing plants. Bottled milk requests from 
educational institutions and retail outlets are trending lower. Class 
II requests have increased. Overall, milk yield in New Mexico has 
moved up. Milk production in the Pacific Northwest is mostly 
following seasonal trends. Some industry contacts suggest a recent 
cold snap may have dampened milk output slightly in some areas. 
Although it may be too early to tell if the recent cold and 
precipitation will have much effect on milk production, it is 
reminiscent of the winter weather parts of the region experienced 
last year. Some industry contacts suggest a few herds still have not 
fully recovered from the miserable cow comfort conditions. Milk 
production in the mountain states of Idaho, Colorado and Utah is 
steady. Although milk output is near its seasonal low for the year, 
manufacturers report no trouble what so ever in getting the milk 
needed. Processors are running at or near full capacity in order to 
keep up with upcoming holiday demand and to stay ahead of the 
available milk supply. Condensed skim supplies are plentiful in the 
West. Processors are looking to contract condensed skim and cream for 
2018. However, due to lower current prices, customers are not 
concerned with product availability or contracting for next year. 
According to industry contacts, cheese makers' demand for condensed 
skim decreased. This week, cream demand for butter churning is solid 
in Arizona, but slightly lower in California. A number of industry 
representatives suggest that some cream is moving from Arizona to 
Texas. Mexico is also taking in some loads of cream for up to 
Christmas. Although current cream demand in the West is seasonally 
active, supplies outweigh demand. Some Californian cream sellers 
report limited tank availability to move their loads. Multipliers for 
all Classes are 1.07 to 1.29. According to the DMN National Retail 
Report-Dairy for the week of November 3-9, the national weighted 
average advertised price for one gallon of milk is $2.79, down $0.05 
from last week, but $0.63 higher from a year ago. The weighted 
average regional price in the Southwest is $2.54, with a price range 
of $1.89-$2.59. The weighted average regional price in the Northwest 
is $1.99, with no price range. According to the NASS Dairy Products 
report, hard ice cream production in the West region for September 
2017 is 13.4 million gallons, 18.3 percent lower than a month ago, 
and 9.3 percent below the previous year. 

1100CT Florence.KoneGonzalez@ams.usda.gov (608)422-8594 
Michael.Bandli@ams.usda.gov (608)422-8592
USDA/AMS/Dairy Market News, Madison, Wisconsin Dairy Market News 
website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: