Butter output in the U.S. is active as processors capitalize on discounted cream values, according to the U.S. Department of Agriculture’s “Dairy Market News.”
USDA said most churns are full of cream, while butter makers continue seasonally building their stocks for later use, especially for the summer. Print and bulk butter orders from retailers are also surprising stronger than expected in some regions, USDA said.
In regard to cheese, the report noted that cheese production continues to be active in the coastal regions. “While still active in the Central region, producers are reining in manufacturing levels following typically heavy post-holiday inventories,” USDA said.
Milk availability, although readily accessible, has settled somewhat as bottlers are taking priority, the report noted.
Western cheese contacts have reported to USDA that production is outpacing demand.
USDA said there are undoubtedly ample amounts of cheese in warehouses, which has left cheese markets in the U.S. somewhat shaky.
As for fluid milk, USDA said national farm milk output is generally steady, with some slight increases reported.
“Cow comfort has been optimal, but some harsh winter weather has midwestern and northeastern contacts concerned about the upcoming weekend,” USDA explained.
Bottlers are planning to get a jump on increasing supplies ahead of the forecasted winter storms. Spot milk available for cheese remains strong nationally, but the heavy discounts of the post-holiday weeks have ebbed somewhat.