Fluid milk and cream review – West

In the mountain states of Idaho, Utah and Colorado, milk is readily available for processing needs. Manufacturing plants are working at near or full capacity.

(USDA Market News)

July 6

In California, warmer weather is negatively affecting cows’ milk output. Production is declining, according to some processors, and milk butterfat is also lower. Bottlers’ intakes are seasonally down.

The June 4a price (butter/powder) in California is $15.91, up $1.48 from the previous month, and $2.40 higher than a year ago. This compares to the Federal Order Class IV price of $15.89 for June.

The June 4b price (cheese) is $15.60, up $0.35 from the previous month, and $2.57 above a year ago. This compares to the Federal Order Class III price for June at $16.44.

In Arizona, the weather is predominantly hotter for cows’ comfort and milk yield is trending down.

Some processors report that Class III plants slightly increased their milk intakes. Class I demand continues to be stable.

In New Mexico, milk production is seasonally lower. However, holdovers are higher due to the closing of some plants for the Fourth of July holiday. A number of processors reduced their daily intakes because of unexpected maintenance/repair downtimes. As a result, some balancing plants are working at full processing capabilities to clear any excess milk into the vats.

Class I processors slightly increased their milk intakes to help clear some of the milk. Class II demand is steady and Class III requests are lower to steady.

In the Pacific Northwest, there is an adequate supply of milk for processing activities. Pasture and range conditions are good to excellent in 64 percent of Oregon and 77 percent of Washington.

In the mountain states of Idaho, Utah and Colorado, milk is readily available for processing needs. Manufacturing plants are working at near or full capacity. Some of the milk is moving within the region while the remaining milk is coming from the South Central region.

According to industry contacts, milk intakes into Class II manufacturing are higher. Pasture and range conditions were reported 84 percent good to excellent in Idaho.

In Utah, the first cutting of alfalfa hay is 97 percent complete, and the second cutting is 18 percent complete. Demand for condensed skim is increasing in some parts of the Western region. Contacts suggest that some manufacturers are using more condensed skim as a substitute for nonfat dry milk due to its lower price.

Due to the holiday, some plants pushed back on cream last week. This week, some manufacturers report that their butter churning has slowed down as cream demand is picking back up.

According to the DMN National Retail Report-Dairy for the week of June 30-July 06, the national weighted average advertised price for one gallon of milk is $3.66, up $1.23 from last week, and $1.38 higher from a year ago. No ads were reported in the Southwest and Northwest regions.