MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI February 12, 2015 (REPORT 6)

CALIFORNIA milk production remains strong, with noticeable increases 
from week to week. Milk sales into Class 1 are seasonally active with 
some manufacturers planning for another eggnog run closer to the 
spring holidays. In-state manufacturing sites are readily handling all 
milk supplies. Some loads are moving within the state to accommodate 
regularly scheduled maintenance projects. Rain fell across the Central 
and Northern areas, but that precipitation did not extend to the 
Southern region of the state. As the new crop season approaches, water 
availability for irrigation purposes remains a top concern. In 
ARIZONA, milk production is steady to higher. Processors report they 
are also handling outside loads as manufacturing milk stairsteps 
across the southwest to ease processing pressure throughout the 
region. Cream demand is steady into contract accounts, with light 
interest for FOB spot loads. Churns are operating intermittently. 
Alfalfa harvesting is taking place in a majority of the state, with 
the crop rated fair to excellent. Milk production in NEW MEXICO 
continues its gradual upward trend. Processors are also working to 
clear milk from plants in a few neighboring states due to minor 
operational problems. Class I and II sales are lower overall, sending 
higher milk volumes into manufacturing. Dairy operations generally 
have adequate feed inputs for the near term, but some shortages on 
forages are noted. Cream supplies are generally higher throughout the 
Western region as manufacturing milk supplies inch upward. Sales into 
regional ice cream/frozen dessert accounts are more active this week, 
taking some of the pressure off of churns. Some Western sellers 
cleared cream into the Central region to assure timely processing. The 
multiples range widened, covering .98 to 1.27, depending on location 
and end use.  At the CME Group, Grade AA butter closed Wednesday at 
$1.7100, down $.1400 compared to a week earlier. PACIFIC NORTHWEST:  
Milk production continues to build higher across much of Washington 
state and Oregon.  There are some areas that received moderate to 
heavy rains, which did not impact the milking herds to any appreciable 
extent.  The moisture is welcome for the upcoming cropping season and 
for pasture growth.  Processing plants are running on steady to higher 
schedules. Milk output is building in Utah and Idaho as conditions 
remain favorable for milk production.  Spring-like weather in Idaho is 
welcomed and cows are responding well.  Feed availability and pricing 
are good for producers.  The lower milk prices are being noted.  
Plants are running on heavy to extended schedules and loads are being 
shipped out of state to find some processing relief.  

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