MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI January 22, 2015 (REPORT 3)

Milk output in CALIFORNIA is mostly characterized as holding 
flat to making slight gains from a week ago.  Conditions are 
variable, but are not impacting the milk flow at the farm level 
to any great extent.  Milk is being handled well by processors 
with minimal downtimes noted.  Class 1 demand has stabilized as 
the school and retail orders have flattened. ARIZONA milk 
production is moving higher on a week to week basis and trending 
several percentage points higher from a year ago.  Plant 
capacity is becoming snugger and processors are limiting the 
milk supplies from other sources.  Weather has been neutral for 
cows.  Demand for Class I milk has leveled off. NEW MEXICO milk 
supplies are being handled well and processors are getting the 
volumes needed for various products.  Bottling demand has slowed 
following higher interest shown through last week. The CREAM 
market is stable.  Pricing and overages are holding steady in a 
tighter range.  There are adequate supplies to service accounts 
in the region.  Buying interest is fair to good and readily 
clearing offerings.  Butter makers are more comfortable making 
butter instead of selling cream at lower multiples or overages.  
West cream multiples are unchanged at 1.15 to 1.55.  At the CME 
Group, Grade AA butter closed Wednesday at $1.5500, up $.0075 
compared to a week earlier. Milk production in the PACIFIC 
NORTHWEST is increasing along seasonally expected lines. 
Manufacturers are anxious for any increased production as most 
are running at nearly full capacity.  Temperatures in the region 
are favorable for increased milk production with no serious 
winter storms to disrupt production. UTAH and IDAHO milk 
production is increasing as mild winter weather has had little 
adverse effects on dairies. Milk processing capacity in the 
region is nearing current production levels. Milk production is 
still up 3 to 4% in the region. Production per cow is also 
increasing. Due to the increase in milk price during last year, 
the number of cows increased. According to the National Retail 
Report- Dairy, the U.S. weighted average price for a gallon of 
milk is $2.92, up $.37 from last week.  In the Southwest, the 
weighted average price was $2.99.  




1100CT Butch.Speth@ams.usda.gov 608.278.4152
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