MD_DA440 Butter - Western U.S. Report 2 - Released on January 13, 2021 Manufacturing plants in the west region are seeing an increase in the butter production level. With heavier than needed inventories on hand, a few butter plants are seizing the opportunity to carry out maintenance activities. Cream supplies are readily available and spark competitive offerings amongst suppliers in the market. Butter producers note cream multiples at the flat market in some instances. Retail sales are soft as stores work off holiday hangover butter. Domestic supplies are growing and impact prices, but manufacturers point to global market demand as an outlet for reducing inventory. Food service channels in the west continue to feel the heavy impact of COVID-19. Drive up restaurant activity is growing and facilitates food service butter sales. Inquiries for bulk butter are budding as buyers hope to fill their needs through Q3. Bulk butter prices are reported 3.50 to 7.50 over the market at the CME Group, with various timeframes and averages used. Prices for: Western U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: +0.0350 - +0.0750 Information for the period January 11 - 15, 2021, issued weekly Secondary Sourced Information: This week, a cooperative export assistance program accepted requests for export assistance to sell 1.634 million pounds (741 metric tons) of butter. Published by: Dairy Market News - Madison, WI DANIEL JOHNSON, 608-422-8605 Email: daniel.johnson4@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