The nation’s Memorial Day weekend was not a holiday for the milk industry. Cows kept producing and it was commented that with the “tremendous” amount of milk, plants were “running out of things to do with it.”

Northeast plants were very full of milk. Dryers were operating at capacity making nonfat dry milk. Some milk that couldn’t be dried or sold as fluid in retail outlets, was moved as condensed skim. Cheese plants had discounted milk readily available. Cream moved readily and cream cheese manufacturing increased and is expected to continue increasing. Regional ice cream production is also increasing and drawing more cream and condensed skim.

Some Middle Atlantic plants were offered extra milk that they didn’t take, due to plant volume already being at maximum capacity. Dryers and evaporators were operating full out in many plants. Recent rain is keeping pastures lush, cows grazing and milk production flowing.

Southeast plants were dealing with an unfolding series of milk movement adaptations over the holiday weekend. This was fueled by several equipment break-downs, as well as some plants having initially ordered more milk than they subsequently needed. These factors caused some milk tankers to be turned back, as well as previously delivered milk being re-loaded on tankers and hauled to other locations. Regional plant capacity was stretched thin and auxiliary capacity was utilized to handle intakes.

Florida has continued to have daily rain for over a week. This has generally eased drought conditions but caused local flooding in some areas. Drier weather is now developing. Milk sales are strong but heat at levels to significantly reduce milk production is lagging seasonal norms, which is a factor in shipments out of the state exceeding the level at this time last year. Ice cream production in Florida is increasing weekly.

Cream is in a transition period, pending expected seasonal increased demand from Class II manufacturers. Cream orders for June ice cream and cream cheese production will begin to be received and the next few weeks are expected to reflect increased Class II demand for cream.

Condensed skim movement is primarily contractual. There is some increased interest from ice cream manufacturers in parts of the region, particularly the Northeast and Middle Atlantic areas.  PD