Sunday, December 09, 2018
 Milk Production, Fluid Milk and Cream Review for the East  

Milk production in New England and upstate New York has remained at more than adequate levels for dairy manufacturing, despite the recent spells of hot dry weather.  The southern portions the Northeast and also the Mid-Atlantic region have suffered from a prolonged heat wave, which has significantly lowered milk production.  Some manufacturing plants are having difficulty meeting their fluid contracts. 

Crop conditions in both regions are deteriorating quickly with New York reporting 85% of the top soil being very short or short of moisture.  Pennsylvania is reporting 63% of its pastures in very poor or poor condition.  Rains over much of Florida last week moderated temperatures and improved cow comfort levels, which limited milk production declines. 

Class I demand is steady compared to last week.  Producers have begun to dry off cows, which is typical for this time of year.  Some producers have indicated their desire to add on cows this fall, due to the improved hay and pasture conditions.  Milk production in the Southeast region continues to decline.  Incoming milk supplies are in balance with the steady Class I demand.  The continuing heat wave has increased milk load rejections due to temperature issues. 

Good cream demand and declining availability, due to lower butterfat levels and milk production, have combined to increase multiples this week.  Multiples range mostly in the 143-149 range with some transactions below and above the range depending on day of week and location. 

Ice cream and cream cheese production account for the strongest demand for cream.  Retail promotions for ice cream and cream cheese are numerous as reported by the National Dairy Retail Report with over 15,000 ads for ice cream and over 6,000 ads for cream cheese.  According to the report, weighted average prices for both products declined with ice cream at $3.03 and cream cheese at $1.41.  Demand for condensed skim milk is very good with ice cream manufacturers pulling additional loads due to the current price advantage that condensed skim has over nonfat dry milk.  Cheese makers are also picking up spot loads of condensed skim for fortification purposes. 

According to NASS, milk production for June 2012 in the 23 reported states totaled 15.5 billion pounds, up 1.0% from June 2011. Milk production increased in 3 of the 5 listed states in the Eastern region with 1 state declining and 1 state unchanged.  Eastern region production increased 0.4% over the same month last year to 2,513 million pounds. The 5 states showed the following percentage changes in milk production from June 2011 to June 2012 and total milk production this June: Florida, +5.2%, 204 million pounds; New York, +1.4%, 1,095 million pounds; Pennsylvania, -1.9, 861 million pounds; Vermont, +0.9%, 214 million pounds; and Virginia, unchanged at 139 million pounds.

Milk cow numbers for June 2012 increased in only 1 of the 5 listed states of the Eastern region with 2 states declining and 2 states unchanged.  As a region, cow numbers were 4,000 head (-0.3%) less compared to the same period last year. Individual state cow numbers compared to June 2011 and cows remaining as of this June are: Florida, 4,000 increase, 123,000 remaining; New York, unchanged, 610,000 remaining; Pennsylvania, 7,000 decrease, 535,000 remaining; Vermont, 1,000 decrease, 133,000 remaining; and Virginia, unchanged, 96,000 remaining.

Source: AMS/USDA

Posted on Thursday, July 26, 2012 (Archive on Thursday, August 02, 2012)
Posted by  Contributed by