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Fluid Milk and Cream Review - West
USDA - Thu Jan 16, 5:34AM CST
MD_DA240

     Fluid Milk and Cream - Western U.S.

     Report 3 - Released on January 16, 2020

     California milk production is at seasonal levels. Mild temperatures are in favor of milk
     production. Milk supplies are plentiful, keeping processing facilities on full schedules.
     Milk orders from educational institutions are flat, whereas Class II demands are a bit
     lower. Arizona milk processing continues on a lively tone to guarantee that all milk is
     taken care of in an efficient and timely manner. Balancing plants are actively being run as
     more in-state and out-of-state milk continues to clear through the dryers. Class I sales
     have stabilized at seasonal levels. Class II demand is low. Milk production is generally
     flat to up. In New Mexico, although milk holdovers are currently above average levels, they
     are still manageable. Class II and III sales are lower. Class I intakes continue to increase
     with the refilling of schools' pipelines post-holidays. Despite wet weather conditions in
     part of the state, milk delivery schedules were not much affected. Pacific Northwest milk
     production is continuing at a strong pace. Furthermore, industry contacts say milk output is
     growing. Bottling demand is steady. And with manufacturers running plants at or near full
     capacity, milk handlers are looking for ideas on how to control the milk supply. Milk
     production in the mountain states of Idaho, Utah, and Colorado, is increasing. Many of the
     region�s processors, especially in Idaho, are already at capacity. Discounted milk loads are
     common, and milk is moving into surrounding regions. Industry contacts say Idaho farmers are
     primed to expand, but without more processing space, any expansion becomes a challenge. A
     few processors are contemplating imposing production caps to control the milk supply. In the
     West, condensed skim is available to meet all demands. There is stability in prices. As
     churns remain full of cream in the West, some manufacturing facilities had to decline taking
     additional loads of cream no matter the prices. Several plant managers are also opting to
     produce more butter in-house instead selling cream at lower prices. Freight costs and
     weather conditions are limited the movement of cream across regions. Cream multiples are
     steady.

     NATIONAL RETAIL REPORT DAIRY � FLUID MILK SUMMARY
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of
     01/10/2020 to 01/16/2020

     Half Gallon, All Fat Tests      Weighted Average Price
     National                 This Period  Last Week  Last Year
      Conventional               $3.00       $1.60      $2.25
      Organic                    $3.66       $3.85      $3.84

     Regional (Organic)         Wtd. Ave.     Low       High
      Northwest                  $3.61       $2.99      $3.99
      Southwest                  $3.97       $2.77      $4.99

     Gallon, All Fat Tests           Weighted Average Price
     National                 This Period  Last Week  Last Year
      Conventional               $3.09       $3.83      $2.95
      Organic                    $5.99       $5.72      $5.65

     Regional (Conventional)    Wtd. Ave.     Low       High
      Northwest                  $2.75       $2.50      $2.99

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0000 - 1.1800


     Information for the period January 13 - 17, 2020, issued weekly

     Secondary Sourced Information:

     Milk pooled on the Pacific Northwest Order 124 totaled 626.1 million pounds in December
     2019. Class I utilization accounted for 22.94 percent of producer milk. The uniform price

     was up $0.13 from last month and $2.81 above the same month a year ago.

     Milk pooled on the Arizona Order 131 totaled 385.4 million pounds in December 2019. Class I
     utilization accounted for about 27.81 percent of producer milk. The uniform price was up
     $0.18 from last month and $3.41 above the same month a year ago.
     Published by:
     Dairy Market News - Madison, WI
     FLORENCE KONE-GONZALEZ, (608)422-8594
     Email: florence.konegonzalez@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 (My Market News): https://mymarketnews.ams.usda.gov

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