MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI January 8, 2015 (REPORT 1)

Milk production in CALIFORNIA is flat to slightly lower throughout the 
state.  Dairy industry members indicate the decrease in milk prices, 
coupled with assessments from some processors, has hit dairy operators 
doubly in the last few months.  Some operators are trying to stretch 
feed inputs on hand until new crop hay becomes available in late 
March.  Operators are also changing rations to stretch feed dollars.  
Class 1 sales are steady to higher for the week as K-12 schools start 
the new semester.  Some universities have another week before 
resumption of classes, and orders for bottled milk are building to 
accommodate demand from that sector. The latest snow survey shows that 
statewide, the average snow water equivalent is at 43% of the normal 
amount, as of January 6. ARIZONA milk production is steady to 
marginally higher.  Plant operators are managing the intakes, but some 
delays in unloading are occurring from time to time. Shipments into 
the state are lower for the week. Bottlers are actively taking in 
loads to refill the pipeline serving K-12 schools. Milk production in 
NEW MEXICO is steady. However, haulers report some loads have been 
lost due to delays in transportation. Sales into Class I are mostly 
steady.  Processing plant operators are putting in long hours to keep 
equipment running during a spate of low temperatures. Cream is readily 
clearing into churns this week as sales into holiday-related products 
are lower.  Ice cream plants also took in some cream to start 
production of the favorite flavors. Demand from aerated cream and sour 
cream producers is lower. Some operations are choosing to churn 
instead of selling at disadvantageous prices. The cream multiples 
range is steady, with some state pricing hampering out of state sales.  
The full multiples range is 1.15 to 1.55.  At the CME Group, Grade AA 
butter closed Wednesday at $1.5400, down $.0150 compared to last 
Wednesday's closing price. Milk production in the PACIFIC NORTHWEST is 
still showing higher than normal volumes as it moves off of seasonal 
lows. Some manufacturers are reporting a 4% increase in fluid milk 
intake over this time last year.  Weather conditions are not causing 
any difficulties in either moving milk or stressing of dairy cows. 
UTAH and IDAHO milk production is mostly steady to increasing 
slightly. Trucking continues to be an issue but no serious problems 
were reported in moving milk in the area. Processing capacity in the 
region is almost at full capacity with current production levels.  
Manufacturers state they are using milk supplies on hand or taking 
contract loads but they do not have capacity for any extra.   





1100CT Janet.Linder@ams.usda.gov 608.278.4157
Tara.Herbst@ams.usda.gov 608.278.4154
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-home