Fluid Milk and Cream Review - West
USDA - Thu Jan 10, 10:33AM CST
MD_DA240

     Fluid Milk and Cream - Western U.S.

     Report 2 - Released on January 10, 2019

     California milk output continues on an increasing tone. According to some industry contacts,
     production is stronger than usual. Fluid milk sales are back up with schools being back in
     session. Most manufacturing plants are running at full capacities, clearing as much milk as
     possible. Arizona bottled milk orders bounced back up after the holiday. Class II sales are
     very low as requests from customers have slowed down. This week, farm milk production is
     heavy, but remains below last year�s volumes. Therefore, processing plants are running full
     time to ensure that all the milk is taken care of. Milk loads are manageable across the
     state. In New Mexico, milk production is down. Class II and III demands have decreased.
     However, Class I sales moved up as educational institutions reopened and are refilling their
     pipelines. More milk is moving to the Southeast this week; however, it has not reached the
     pre-holiday volumes. Milk production in the Pacific Northwest is strong. Bottling demand is
     steady, and there is plenty of milk available for processing. Manufacturers can find extra
     loads of milk and cream, but in some cases, trucks are harder to find. The balance between
     milk intakes and production ebbs and flows in the mountain states of Idaho, Utah and
     Colorado. Industry contacts say, currently production and demand are in good balance. Even
     amid strong seasonal milk production, manufacturers are taking in heavy volumes. In some
     cases, manufacturers are running 7 days per week. Although the boost in processing activity
     helps ease some of the stress within the regional dairy industry, there is still
     considerable financial stress prevalent within the farms of the region. Cream churning is
     very active in the West as many processors of cream-based products reduced their intakes,
     and cream availability is strong. Some handlers are looking for additional capacities to
     clear their cream, but many manufacturing facilities do not have the space to help. Due to
     heavy cream supplies during the holiday, a few plants are currently behind schedules on
     clearing their cream. Due to an urgent request for cream that needed to be fulfilled on a
     short notice, cream multiples for all Classes moved up, ranging 1.00 to 1.26. However, most
     sales are in the range of 1.00-1.15. According to some market players, condensed skim sales
     are strong. Loads are changing hands amongst some western states. However, prices seem to be
     a little higher than usual. Supplies are available to satisfy the needs of all customers.

     National Retail Report Dairy � Fluid Milk Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 1/4/2019
     to 1/10/2019

     Half Gallon, All Fat Tests          Weighted Average Price
     National                   This Period      Last Week     Last Year
      Organic                      $3.91          $3.88          $3.79
      Conventional                 $2.46          $1.18          $2.83

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

     Regional (Organic)          Wtd. Ave.        Low             High
      Northwest                    $3.99          $3.99          $3.99
      Southwest                    $4.99          $4.99          $4.99

     Gallon, All Fat Tests              Weighted Average Price
     National                   This Period      Last Week     Last Year
      Organic                      $6.18          $4.99          $5.83
      Conventional                 $2.50          $2.43          $3.01

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

     Regional (Organic)          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                     n.a.           n.a.           n.a.
      Southwest                     n.a.           n.a.           n.a.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0000 - 1.2600


     Information for the period January 7 - 11, 2019, issued weekly
     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