Fluid Milk and Cream Review - West
MD_DA240

     Fluid Milk and Cream - Western U.S.

     Report 21 - Released on May 27, 2021

     Milk is steady and flat in California. Class I orders are down, but Class III demand is
     increasing. Drought emergency has been declared in 41 of California�s 58 counties. There
     are some reports of dairy farmers fallowing fields that would have been used to grow feed
     and focusing available water on other, more permanent, crops. Conditions vary by farm,
     however, and milk production does not yet appear to be significantly impacted. In Arizona,
     milk production and Class I demand are steady. In addition to local milk, dairy
     manufacturers with available capacity have also been working through a steady supply of out
     of state milk. Milk output in New Mexico is flat. Class I and II demand are down a little.
     Milk is heavy in the Pacific Northwest. Double-digit overbase programs are working to help
     keep the abundance in check. Class I demand is level, and some bottling plants are operating
     at capacity. Weather is favorable for cow comfort in the mountain states of Idaho, Utah, and
     Colorado, and milk production is strong. Bottling orders are flat. Class III sales are
     healthy. Contracted condensed skim is steady, and limited spot loads are available around
     flat class pricing. Available cream supplies are meeting dairy manufacturing demands. Butter
     production is seasonally lower, but generous volumes of cream are being absorbed by active
     ice cream and cream cheese production. This week, cream multiples dropped one point at the
     top of the range.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.0500 - 1.2900


     Information for the period May 24 - 28, 2021, issued weekly

     Secondary Sourced Information:

     PACIFIC NORTHWEST MARKET ORDER
     Milk delivered to the Pacific Northwest Order 124 totaled 610.7 million pounds in April
     2021. Class I utilization was 137.8 million pounds and accounted for 22.6 percent of
     producer milk. The uniform price was $16.28, up $1.13 from March 2021, and $3.13 above the
     same month a year ago.

     ARIZONA MARKET ORDER
     Milk delivered to the Arizona Order 131 totaled 351.6 million pounds in April 2021. Class I
     utilization was 113.7 million pounds and accounted for about 32.3 percent of producer milk.
     The uniform price was $16.43, up $0.88 from March 2021, and $3.10 above the same month a
     year ago.

     CALIFORNIA MARKET ORDER
     Milk pooled on the California Order 51 totaled 1.913 billion pounds in April 2021. Class I
     utilization was 406.7 million pounds and accounted for about 21.3 percent of producer milk.
     The uniform price was $15.91, up $1.06 from March 2021, and $2.97 above the same month a
     year ago.

     MONTHLY MILK PRODUCTION
     The NASS Milk Production report noted April 2021 milk production in the 24 major states was
     18.4 billion pounds, 3.5 percent higher than a year ago. Milk cows in the 24 selected
     states totaled 8.98 million head, 121,000 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:

     April 2021 Milk Production, (USDA-NASS)

                 (Million Pounds)    % Change From
                                     1 Year Ago

      Arizona         424  - 1.6

      California 3646  + 4.1
      Colorado 444  + 6.0
      Idaho  1366  + 1.0
      New Mexico 713  + 2.9
      Oregon         222  + 0.9
      Utah  185  - 1.1
      Washington 560  - 1.4

     Published by:
     Dairy Market News - Madison, WI
     CHELSEA ROCHELLE, 608-422-8594
     Email: Chelsea.Rochelle@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