MD_DA240

     Fluid Milk and Cream - Western U.S.

     Report 8 - Released on February 20, 2020

     Milk production in California is steady and manageable. Class I demands are unchanged from a
     week ago. The components of milk are increasing. There is a lot of milk available in the
     Arizona dairy market. Manufacturing machines are being operated at full capacities.
     Nonetheless, processors cannot take all the milk offered to them due to limitations in
     processing room. Occasionally, they take a few loads of out of state milk and cream. The
     expectation is that Arizona fluid milk production will remain high until June or July. Class
     I sales are stable. Minor wintery weather persists in some parts of New Mexico and continues
     to create delays in milk deliveries. Haulers are doing their best to keep moving milk to the
     predetermined locations. Despite 3-6 inches of snow with ice in Eastern New Mexico, milk
     output hasn't declined in that region. Haulers are looking for additional sale outlets to
     prevent any milk loads from touching the ground. Class I demand is a bit up, but Class II
     and III sales are down. Pacific Northwest milk production is strong. Industry contacts say
     the recent run of pleasant weather has helped milk output surge forward once again.
     Manufacturing facilities are running at or near full capacity. Bottling demand is steady.
     With elevated milk component levels, cream supplies are plentiful. Milk production in the
     mountain states of Idaho, Utah, and Colorado is heavy. Industry contacts relay that several
     million pounds of milk was discarded in Idaho this January due to lack of processing space.
     While it is difficult to prognosticate, the heavy milk supplies at what is typically the
     nadir of the milk production season suggests challenges ahead for the region. Many
     manufacturing facilities are running at full capacity already. Some processors expect to
     enforce base programs to curb production. In addition, a few manufacturers may discontinue
     the ability of farmers to transfer base to other farms. There is so much condensed skim in
     the West that some processors are looking for ways to move it from one region to the other
     for drying. In the West, cream availability is still up. Multiples for all Classes have
     increased at the bottom of the range compared to the previous week. Cream mobility across
     regions is helping with loads management.

     NATIONAL RETAIL REPORT DAIRY – FLUID MILK SUMMARY
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of
     02/14/2020 to 02/20/2020

     Half Gallon, All Fat Tests       Weighted Average Price
     National                  This Period   Last Week   Last Year
     Conventional                 $2.07        $2.96       $2.26
     Organic                      $4.17        $4.04       $3.97

     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                    $3.17        $2.99       $3.48
     Southwest                    $3.71        $2.99       $4.99

     Gallon, All Fat Tests             Weighted Average Price
     National                   This Period  Last Week   Last Year
      Conventional                $3.72        $2.09       $3.40
      Organic                     $5.99        $5.99       $4.70

     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 February 17 - 21, 2020, issued weekly

     Secondary Sourced Information:

     Milk pooled on the Pacific Northwest Order 124 totaled 769.5 million pounds in January
     2020. Class I utilization accounted for 19.39 percent of producer milk. The uniform price
     was down $0.44 from last month, but $2.18 above the same month a year ago.

     Milk pooled on the Arizona Order 131 totaled 442.9 million pounds in January 2020. Class I
     utilization accounted for about 24.46 percent of producer milk. The uniform price was down
     $0.79 from last month, but $2.32 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
     MIKE BANDLI, (608)422-8592
     Email: mike.bandli@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