MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI February 5, 2015 (REPORT 5)

Farm milk production is CALIFORNIA is steady to incrementally higher 
than last week, however intakes are somewhat below year ago volumes. 
Changes in production vary within the state, with more noticeable 
increases in the Central and Southern regions compared to the Northern 
region. The latest manual snow survey was completed at several 
locations, with disappointing results. The statewide snow water 
equivalent was at 25 percent of the long-term average for this time of 
year. Alfalfa harvest is underway in the Imperial Valley, giving dairy 
producers fresh forage to include in rations. Bottler sales are active 
at seasonal volumes. Various stores offer alternating bottled milk 
brands with competitive pricing from week to week. 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.  ARIZONA milk production is 
steady to increasing incrementally. Weather conditions are conducive 
to cow comfort. In-state plant operators are also taking in some milk 
loads that usually clear to out of state locations. Sales to bottler 
accounts are steady. Interest from Class II is light to moderate. NEW 
MEXICO milk production is modestly higher and feed inputs are readily 
available. Transportation generally moved without a hitch this week as 
the weather cooperated. Milk volumes clearing into fluid plants are 
increasing as orders arrive to replenish stocks at consumer outlets. 
Sales into Class II operations are steady with good interest.  With 
generally higher milk intakes throughout the West region, cream 
availability is steady to improving. In addition, cream pricing in 
some state orders has decreased, allowing more cream loads to clear 
out of state. A few butter churn operators report that with the recent 
uptick in Grade AA butter pricing on the CME Group, with limited 
supply/demand basis for the run up in prices, they are concerned about 
building butter stocks beyond what they expect for Q1-Q2 orders. Sales 
into ice cream accounts popped higher this week for some sellers, as 
prices moderated in some areas. The full multiples range widened, 
covering 1.10 to 1.25.  At the CME Group, Grade AA butter closed 
Wednesday at $1.8500, up $.2125 compared to a week earlier.  PACIFIC 
NORTHWEST:  Milk output is trending slightly higher across most 
of Washington and Oregon.  Intake levels at processing plants 
are increasing with some plants being kept full to make products 
of greatest needs.  Processors are managing the incoming milk 
supplies.  Current weather conditions remain good for milk cows.  
Feed pricing and availability are generally favorable.  Declines 
in milk prices are noted to be worked into the planning process, 
but farmers are slow to cull cows.  Milk production in Utah and 
Idaho continues to build at levels above a year ago.  Many 
farmers have feed on hand at favorable prices and have locked in 
many input costs.  Processing plants are finding milk intakes 
are increasing and above projections.  Milk is being moved 
around to find homes, and there are buyers for offered milk.  
There are concerns about handling the milk volumes during the 
flush.  Several handlers were expressing the impact of the 
growing milk volumes and the ability to process the upcoming 
supplies.  Water conditions are noted to be in fair to good 
shape for the upcoming cropping season.  


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