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The top-end UHT milk products are mostly 100% foreign made and imported mainly from New Zealand, Australia, Germany and France. 

The market for dairy alternative drinks is growing, fueled by its increasing popularity in the West, where it is moving out of the specialist heath food arena and into the mainstream.

A combination of three factors: butter prices declining this week to levels last present during mid-July, cream offerings being heavy and expected to increase, and butterfat tests since July substantially above the last few years, all lead to one result - surplus cream

Milk supplies available for cheese manufacturing have increased and cheese plants are working additional hours to accommodate the increased volumes Midwest farm milk production is increasing steadily, and California milk production is slowly building.

Class I demand continues to be very strong in the Northeast and Mid-Atlantic regions, limiting manufacturing milk supplies. California milk output trends continue to indicate steady to slightly higher gains. Processing plants are running at manageable levels and no issues are expected over the Thanksgiving holiday period. Conditions have been ideal for milk production across Arizona and total output is increasing on a weekly basis. 

The research firm Beijing Shenong says organic milk accounts for less than 1% of the total. Among the reasons: The cost of an organic farm is high. 

Total cheese output (excluding cottage cheese) was 871 million pounds, 0.3 percent above September 2011 but 1.9 percent below August 2012.

Cheese prices across the U.S. continued to move higher this week and milk production is increasing, to varying degrees, across most regions of the nation, reports the USDA's Dairy Market News.