Raw milk shipment into Class I and Class III plants has been active across the Southwest region as a fourth round of the Farmers to Families Food Box Program has been approved by USDA, with expected deliveries of food boxes from November 1 through December 31, 2020. According to some industry contacts, government purchases are helping to stabilize or push milk prices up. Meanwhile, cow’s milk output is steady to slightly up in California as the weather has been mostly dry with lower daytime temperatures. The quality and quantity of the dairy cattle feed is good and plentiful. Winter wheat planting is active across the Central Valley. Raw milk fat and protein components continue improving week after week.
In Arizona, milk production is mostly steady. Bottled milk sales are reported as higher as requests from the retail sector remain healthy. The harvesting of fair/good cotton is active is some farming areas of the state.
In New Mexico, milk outputs are steady to slightly down. Shipments into Class I are slightly higher as eggnog production is becoming more active.
Pacific Northwest milk production is steady. Cool nights and pleasant daytime temperatures are not creating any cow comfort issues. Farmers are managing herds to keep within production programs. Milk intakes are easily meeting most processing needs. Manufacturers are running facilities at or near full capacity. Bottling demand, while tricky to find the right balance between family container sizes and single-serve institutional containers, is steady.
Milk production in the mountain states of Idaho, Utah, and Colorado, is solid. Processors are not having any trouble getting the milk needed for manufactured dairy products. Most dairy processing facilities are running at or near full capacity with only the occasional shutdown for planned or unplanned maintenance. A few discounted spot loads of milk remain available in Idaho.
Western condensed skim milk volumes continue clearing into seasonal ice cream making, as well into NDM production. Cream demand from churners is strong as butter production is ramping up ahead of the year-end holidays’ needs. Cream demand is also seasonally strong from Class II processors. However, cream premiums remained steady this week as cream multiples are ranging from 1.05 to 1.28.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0500 - 1.2800
