MD_DA240

     Fluid Milk and Cream - Western U.S.

     Report 1 - Released on January 02, 2020

     California milk production is stable. Despite busy processing schedules, milk is being
     cleared without any major incident. Class II and bottled milk requests remain low, but
     demands are in line with projections. Processing plants that are open during the holiday are
     being run at full capacities to ensure that all milk loads find a home. Milk production in
     Arizona is unchanged from the previous week. However, the total volumes produced are lower
     compared to last year at this time. There remains more than enough milk for processing,
     especially with the decline in Class I intakes from schools' accounts and the schedule
     changes at different plants. Some Class IV processors were able to take in additional out-
     of-state milk loads to accommodate the holiday clearing needs. The churns that were turned
     on last week are still actively being used for cream load management. In New Mexico, drying
     and churning are helping keep milk and cream loads under control. Orders for next week
     delivery are up as schools are expected to reopen soon. Meanwhile, this week intakes are
     flat. Farm milk yields are at seasonal levels. Overall, the market tone is nothing short of
     expectations. Pacific Northwest milk production is steady. School milk bottling is still at
     the mid-winter low tide. But most manufacturers are running regular weekly schedules, and
     intakes are balanced with processing needs. Milk production in the mountain states of Idaho,
     Utah, and Colorado, is steady to higher. Milk flows are getting back to normal following the
     holiday last week, with fewer disruptions for the New Year holiday week. However, discounted
     milk loads are still common in parts of the region. A lot of condensed skim is clearing
     through the dryers this week. Although availability has picked up, condensed skim continues
     to be efficiently processed. The market is expected to return to normal
     activities/processing next week. Cream offers are plenteous in the western dairy market as
     many plants are closed for either a day or multiple days at a time during the holiday week.
     As the result, cream churning is active wherever there is extra room. Cream multiples for
     all Classes are still low at last weeks' price points.

     NATIONAL RETAIL REPORT DAIRY – FLUID MILK SUMMARY
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of
     12/27/2019 to 1/2/2020
     Half Gallon, All Fat Tests         Weighted Average Price
     National                     This Period  Last Week   Last Year
     Conventional                  $2.40       $1.89        $1.18
      Organic                      $3.69       $3.99        $3.88

     Regional (Conventional)      Wtd. Ave.    Low           High
     Northwest                     $0.99       $0.99        $0.99
     Regional (Organic)           Wtd. Ave.    Low           High
     Northwest                     $2.99       $2.99        $2.99
     Southwest                     $3.83       $3.50        $3.98

     Gallon, All Fat Tests             Weighted Average Price
     National                     This Period  Last Week   Last Year
     Conventional                  $2.93       $2.98        $2.43
      Organic                       n.a.       $5.69        $4.99

     Regional (Conventional)      Wtd. Ave.    Low           High
     Southwest                     $2.99       $2.99        $2.99

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               0.9500 - 1.1800


     Information for the period December 30, 2019 -  January 3, 2020, issued weekly
     Published by:
     Dairy Market News - Madison, WI
     FLORENCE KONE-GONZALEZ, (608)422-8594

     Email: florence.konegonzalez@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