MD_DA230                                                              
DA                                                                    
MD DA230   Fluid Milk and Cream Review - Central                      

MADISON, WI.  January 14, 2016 (REPORT 2)                             

SPOT PRICES OF CLASS II CREAM, $ PER POUND BUTTERFAT                  
F.O.B. producing plants:   Upper Midwest -   $2.2814-2.5666           

Subzero temperatures occurred in much of the North Central region while 
the temperatures in the South Central region ranged from the mid-teens to 
the 50s in the early part of the week. Some reports of milk trucks not 
operating were received from processors in the north, but those incidents 
were infrequent. There were also reports of problems with waterlines in 
barns, and one or two processors were dealing with broken water mains 
coming into their plants. This prompted some rerouting of milk loads. 
Dairy cows are consuming feed at a higher rate to compensate for the cold 
weather, but dairy operators indicate feed supplies are adequate to handle 
the increased demands for the near term. Milk intakes trended lower in the 
North Central. In those areas in the South Central area hit by Goliath, 
milk handlers also report pick up volumes are mixed. The full impacts of 
lost dairy cows and reduced milk production for surviving cows cannot be 
fully assessed at this time. Bottled milk demand is higher than last week 
as retailers stock up ahead of the extended holiday weekend. Also, a few 
bottlers are running colored/flavored milk varieties in conjunction with 
some regional professional football leagues. Spot milk availability is 
moderate with prices ranging from $3.00 under Class to $0.75 over, 
depending on time, volume, and location. Milk volumes are moving within 
the region and outside the region to handle shortfalls at various bottling 
and/or processing plants. Sales of condensed skim and cream are steady to 
higher into Class II plants. Hard ice cream production at some plants is 
ramping up. Operators indicate both the multi-serving and stick/cup/cone 
individual serving lines are running. Some cream cheese plants are also 
adding production time. Multiples for Central region Class II cream are 
higher, 1.12-1.26. According to the DMN National Retail Report-Dairy for 
the week of January 8-14, the national and Midwest weighted average 
advertised prices for one gallon of milk are, respectively, $2.54 and 
$2.50. 

1100CT Janet.Linder@ams.usda.gov 608.557.7003
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home