Milk output is decreasing in California, and component levels are lower. Milk is still widely available, however, and some contacts report balance between supply and demand. Bottling sales are lower. Class II and Class III demand is steady. Recent reports indicate that monsoon rains across the Southwest have helped provide a modicum of drought improvement to the arid region. The torrential rainfall, however, has also led to instances of dangerous flash flooding.
Arizona contacts say milk output has tightened as cow comfort is less than optimal amidst high heat, humidity, and muddy farm conditions. Flooded roads have caused some delays in milk pick ups, but handlers report that milk deliveries are still coming in. Class I orders are ramping up as the school year begins for some educational institutions. Class II demand is flat.
Milk production in New Mexico is lower and following seasonal patterns. Bottling sales are level. Class III demand is steady to higher. Balancing plants are active, but not stressed, contacts report.
Heat events and wildfire conditions may have influenced slightly lower than expected production in Washington, but contacts say that milk output in the Pacific Northwest is relatively steady overall. Some handlers anticipate that more hot weather could lead to dips in production, but others expect that cows will maintain current output rates for a while. Class I demand is lower. Class II and III orders are level.
Farm-level milk production is declining in the mountain states of Idaho, Utah, and Colorado, but supplies are still ample. Handlers report that spot milk is available in Idaho at discounts of up to $5.00 to $5.50 under Class III. Bottling orders are level to higher. Balancing plants are active.
Contracted condensed skim is steady. Cream is tightening. Contacts report flat demand. Cream supplies are meeting the production needs for butter, cream cheese, and other cream-based dairy manufacturers. Cream multiples are mixed this week, with expansion at both ends of the range.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.1200 - 1.3300
Information for the period July 26 - 30, 2021, issued weekly
Secondary Sourced Information:
PACIFIC NORTHWEST MARKET ORDER
Milk delivered to the Pacific Northwest Order 124 totaled 598.3 million pounds in June 2021. Class I utilization was 124.5 million pounds and accounted for 20.81 percent of producer milk. The uniform price at test was $18.70, down $0.28 from May 2021, but $2.03 above the same month a year ago.
ARIZONA MARKET ORDER
Milk delivered to the Arizona Order 131 totaled 390.1 million pounds in June 2021. Class I utilization was 109.2 million pounds and accounted for about 28.0 percent of producer milk. The uniform price at test was $18.21, up $0.65 from May 2021, and $2.39 above the same month a year ago.
MONTHLY MILK PRODUCTION
The NASS Milk Production report noted June 2021 milk production in the 24 major states was 18.1 billion pounds, 3.2 percent higher than a year ago. Milk cows in the 24 selected states totaled 9.00 million head, 161,000 head more than a year ago. The following table shows western states included in the report and the monthly milk production changes compared to a year ago: June 2021 Milk Production, (USDA-NASS)
(Million Pounds) % Change From
1 Year Ago
Arizona 401 - 0.5
California 3459 + 3.1
Colorado 444 + 4.7
Idaho 1396 + 3.6
New Mexico 675 + 4.3
Oregon 220 + 0.5
Utah 193 + 2.7
Washington 549 - 2.7
