Fluid Milk and Cream Review - West
USDA - Thu Mar 11, 4:48PM UTC
MD_DA240

     Fluid Milk and Cream - Western U.S.

     Report 10 - Released on March 11, 2021

     In California, the spring flush has come early and heavy. Some contacts suggest that there
     may be milk being discarded. Others report that processors may be tolling milk with their
     partners or offering discounted loads. While a lot of milk is staying more local, some cream
     and condensed skim is being hauled outside the region. Bottling is steady. Milk production
     continues to increase in Arizona as cows are comfortable with spring temperatures. Milk
     intakes are in good balance with processing needs. Manufactures say they are not bringing in
     much milk from surrounding states. Class I sales are steady. New Mexico milk production is
     returning to normal seasonal patterns. Class I demand is a bit lower this week but was still
     stronger than normal. Balancing plants are operating at capacity. The full impact of the
     winter storms is still being determined, but there is some indication of an increase in
     culling. Milk haulers suggest that they have learned from the experience and are better
     prepared for future storms. As dine-in restrictions relax in the Pacific Northwest, Class I
     demand has eased slightly. Manufacturers have plenty of milk available to them for
     processing. Milk intakes have been held in check with over base programs, but processors are
     evaluating whether it makes economic sense to take on any of the additional milk. Milk
     production is nearing spring flush and some contacts suggest that they are seeing some of
     the highest component levels they have ever seen. Milk production in the mountain States of
     Idaho, Utah, and Colorado is strong, and milk handlers are discounting loads at 4.00-$5.00
     under Class IV to move loads out into surrounding states. Parts of the region are preparing
     for a heavy snow event late this week by staging trucks and bringing up extra trailers to
     keep plants running. There is a lot of creativity involved to keep milk moving from farm to
     plant. Across the region, there are conflicting views on condensed skim availability. Some
     contacts report that spot loads of condensed skim milk are committed. Others suggest that
     loads of skim solids are widely available as the region enters into flush. Cream in the west
     is heavy with higher than usual seasonal production. Demand is meeting the increased supply,
     though, as industry contacts report more spot interest in cream. Butter churns are active,
     however, ice cream makers are also keeping busy working through the abundance of cream and
     milkfat.



     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0500 - 1.2800


     Information for the period March 8 - 12, 2021, issued weekly
     Published by:
     Dairy Market News - Madison, WI
     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