MD_DA240 DA MD DA240 FLUID MILK AND CREAM REVIEW - WEST Madison, WI January 29, 2015 (REPORT 4) Milk production in CALIFORNIA is showing steady week to week growth. Dairy producers indicate this upswing is later than usual, but the upward trend seems to be firmly established now. Feed concerns linger as hay quality is lower than anticipated. At distribution plants, intakes are generally below year ago volumes, which supports the dairy producers evaluation of the turnaround in milk production being later this year. Sales into bottling plants are steady as the pipeline for educational institutions is full. December 2014 POOL RECEIPTS of milk in CALIFORNIA total 3.36 billion pounds, 0.4% higher compared to December last year, according to California Department of Food and Agriculture. Year-to-date through December 2014 receipts are 3.6% higher from the comparable months in 2013. The December Value at Test price is $17.82, $2.60 lower than November 2014 and $2.90 lower than December 2013. The percentage of receipts used in Class 1 products is 14.27%. The December quota price is $18.22 and the over quota price is $16.52. These prices are $2.48 lower than November 2014 and $2.76 lower than a year ago. Plant operators report milk intakes into manufacturing plants are stepping higher weekly in ARIZONA. Weather conditions are conducive to cow comfort, and dairy producers report feed is readily available. Processors indicate they are handling out of state milk intermittently to assure all milk loads are processed within required timeframes. Sales into fluid accounts are steady. Ice cream accounts took in a few more cream loads compared to last week.Milk production in NEW MEXICO is building from week to week. There have been some days with colder weather, but dairy cows are taking the changes in temperature in stride. A few fluid accounts have pushed back milk loads due to lower consumer demand and milk is stairstepping east to west to find processing room. Cream demand is steady, with seasonal demand from ice cream, cream cheese, and whipped cream accounts. A few churn operators report their internal cream supplies are sufficient for current churning needs. Those operators are out of the spot cream market. The cream multiples range narrowed, with some state pricing hampering out of state sales. The full multiples range is 1.15 to 1.21. At the CME Group, Grade AA butter closed Wednesday at $1.6375, up $.0875 compared to a week earlier. PACIFIC NORTHWEST: Milk production in Washington and Oregon are steady to making slight weekly gains. Weather conditions are favorable for milk cows. Processing capacity in the region is adequate to handle available milk supplies. Cheese plants are tending to be kept in milk. Declining milk prices are working through as dairy producers are beginning to see lower checks. In December, the Milk Production Report indicates that milk cow numbers were 11,000 head higher than a year earlier in Washington and 1,000 head more in Oregon. UTAH and IDAHO milk production is trending seasonally higher and at levels above a year ago. Processing plants are running on normal schedules to handle incoming milk supplies. Conditions remain fair to good for milk output gains. In December, the Milk Production Report indicates that milk cow numbers were 14,000 head higher than a year earlier in Idaho and 2,000 head higher in Utah. According to NASS, December milk production for the 23 selected states totals 16.2 billion pounds, 3.2% higher than one year ago. December milk production changes from one year ago for selected Western states are as follows: Arizona +4.5%, California -0.1%, Colorado +6.6%, Idaho +3.5%, New Mexico +0.5%, Oregon -0.5%, Utah +8.8% and Washington +5.0%. 1100CT Butch.Speth@ams.usda.gov 608.278.4152 Janet.Linder@ams.usda.gov 608.278.4157 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