MD_DA240
Fluid Milk and Cream - Western U.S.
Report 6 - Released on February 07, 2019
Milk output throughout California is mostly stable and milk processing levels are unchanged
from a week ago. Class I sales are steady. California hay quality is being affected by
unsettled weather outcomes. In the Imperial Valley, the first cutting of alfalfa hay is
scheduled to take place in the coming two to three weeks, and farmers expect stronger export
demand. Demand from Saudi Arabia will likely increase because of restrictions on irrigation
water usage for alfalfa farms in this country. Dairy farmers in California are waiting to
see how the hay prices will change in the coming months. Milk output in Arizona is flat to
increasing as comfortable weather conditions are giving an extra boost to cowsś
productivity. Processing facility managers are running their plants at full or near full
capacity and are content with the loads of milk available to them. Bottled milk demand has
not much fluctuated from last weekśs volumes. Class VI usages remain strong as producers opt
to make more butter instead selling their cream at a discount. Although milk production is
lower in New Mexico this week, milk loads available to buyers are higher than usual. This is
because some Class III customers reduced their pre-ordered volumes during the week. Handlers
were quick to find ways to push more milk to other Class III processing facilities to clear
out some loads. Class I and II orders are both down. Milk production in the Pacific
Northwest is steady. Areas of Washington and Oregon had snowfall early in the week and may
get more accumulation this weekend. While snow and colder temperatures tend to stymie milk
production somewhat, the moisture is welcome in the region that has been dry through much of
the winter. Bottling demand continues at typical seasonal patterns. In the mountain states
of Idaho, Utah and Colorado, milk production is steady. Manufacturers report intakes are in
generally good balance with processing needs and there are only a few discounted loads
getting pushed into neighboring states. Industry contacts say some cooperatives are
projecting milk needs ahead of the spring flush and discussing with members the need to
curtail milk production. Cream availability remains strong in the West. Nonetheless,
according to a few market participants, more cream is moving through contracts and the
volumes of cream in the spot market have slightly decreased. Butter processors are still
taking advantage of favorable cream prices to churn more butter. Cream multipliers are 1.00
-1.17, unchanged from a week ago.
National Retail Report Dairy ą Fluid Milk Summary
Advertised Prices at Major Retail Supermarket Outlets ending during the period of 2/01/2019
to 2/07/2019
Half Gallon, All Fat Tests Weighted Average Price
National This Period Last Week Last Year
Organic $3.63 $3.98 $3.96
Conventional $2.46 $1.00 $1.27
Regional (Conventional) 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 $3.99 $3.99 $3.99
Southwest $3.33 $2.49 $3.99
Gallon, All Fat Tests Weighted Average Price
National This Period Last Week Last Year
Organic $6.01 $6.85 n.a.
Conventional $2.65 $2.65 $2.88
Regional (Conventional) Wtd. Ave. Low High
Northwest $1.99 $1.99 $1.99
Southwest $2.49 $2.49 $2.49
Regional (Organic) Wtd. Ave. Low High
Northwest $5.00 $5.00 $5.00
Southwest n.a. n.a. n.a.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0000 - 1.1700
Information for the period February 4 - 8, 2019, issued weekly
Secondary Sourced Information:
Dairy Products Report - Ice Cream, Regular, Hard
Released February 4, 2019, by the National Agricultural Statistics Service (NASS),
Agricultural Statistics Board, United States Department of Agriculture (USDA).
Ice Cream, Regular (Hard) Production ą States and United States: 2017 and 2018
Monthly Production (1000 pounds) Percent Change from
Total Cream, Regular (Hard November October November November October
Region 2017 2018 2018 2017 2018
United States 49,618 59,756 51,921 4.6 -13.1
Atlantic 12,541 14,815 13,072 4.2 -11.8
Pennsylvania 3,847 3,353 3,830 -0.4 14.2
Central 27,447 33,966 29,268 6.6 -13.8
Missouri 1,631 2,465 2,279 39.7 -7.5
Ohio 1,934 2,247 2,005 3.7 -10.8
West 9,630 10,975 9,581 -0.5 -12.7
California 5,238 5,367 4,468 -14.7 -16.8
Oregon 778 1,091 984 26.5 -9.8
Utah 1,701 2,316 2,130 25.2 -8
Ice Cream, Regular (Hard) ą Cumulative Production January - November
Cumulative Production Percent Change
(1000 pounds) from
Report Month 2017 2018 2017
November 716,142 689,157 -3.8
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: https://www.ams.usda.gov/market-news/dairy
DMN MARS (MyMarketNews): https://mymarketnews.ams.usda.gov/
DMN Database Portal: https://www.marketnews.usda.gov/mnp/da-home