MD_DA350                                                    
DA                                                          
MD DA350 Dry Buttermilk (Central and East)                  

MADISON, WI.  February 05, 2015 (REPORT 5)                  

DRY BUTTERMILK - CENTRAL AND EAST                           

CENTRAL: Prices are up.  Sales are slow for dry buttermilk, but seem to be 
picking up for condensed. At current pricing levels, some ice cream 
manufacturers are comfortable buying stocks for future needs. According to 
NASS Dairy Products, Central ice cream production increased 8.2% from 
November and 12.6% from December 2013.                                                               
EAST: Prices for dry buttermilk rose slightly due to increases in f.o.b spot 
pricing.  There is no clear answer as market traders consider where prices 
will begin to level.  Dry buttermilk production is active as heavy butter 
churning increases condensed buttermilk supplies.  A concern for processors 
is dryer scheduling, as other milk solids compete for dryer time.  Producers   
are fulfilling order commitments as current output adds to growing stocks   
Dry buttermilk demand is fair to good.  Market participants note increased 
demand as ice cream production emerges.  Some buyers are comfortable with 
making spot purchases aside from having contracts in place.  The market tone 
is unsettled.  The January 2015 Dairy Market News monthly average for the 
Central/East dry buttermilk series is $0.8606 compared to $1.9113 a year 
ago. 
DAIRY PRODUCTS:  According to NASS, U.S. production of dry buttermilk during 
December 2014 totaled 10.2 million pounds, 7.5% less than a year ago but 
14.9% more than the previous month.  Month ending stocks were 25.9 million 
pounds, 96.1% more than a year ago and 11.0% more than the previous month.

F.O.B. CENTRAL/EAST:    .7200 - 1.0000                      

1100CT Daniel.Johnson@ams.usda.gov & Tara.Herbst@ams.usda.gov 
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-
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