MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI February 19, 2015 (REPORT 7)

In CALIFORNIA, milk intakes continue to increase steadily. A warming 
trend in daytime temperatures is adding to cow comfort. Fluid milk 
sales are unchanged into most accounts. Manufacturers are handling 
intakes with processing room to spare. Some milk loads are 
transferring between plants to meet contract commitments and also to 
help industry counterparts handle intakes without a loss to dairy 
producers. The most recent cow slaughter report shows dairy cow 
slaughter numbers are higher compared to one year ago in Region 9, 
which includes Arizona and California. Milk production in ARIZONA 
continues to trend higher from week to week, and is also higher 
compared to one year ago. Processors indicate plants are running close 
to full as some cheese operations take needed downtime for 
maintenance. Those increases into Class IV are being balanced to a 
certain extent by a welcome decrease in out of state milk intakes. 
Bottler sales are steady to higher to support features at grocery 
stores. NEW MEXICO milk production is sustaining seasonal growth, 
although the rate of increase is tapering off. Bottlers' orders 
stepped higher in the first half of the week. Sales into Class II 
manufacturers are steady for the week. Processers mentioned outside 
milk loads coming into New Mexico are lower. Dairy producers report 
finding affordable feed inputs, especially corn, is an ongoing 
challenge. Competing interests in the cream market were actively 
seeking out loads in the market this week, but some areas are finding 
it more difficult to clear cream due to timing and transportation 
availability. Manufacturers of ice cream, frozen desserts, whipped 
cream, and cream cheese all sought cream in the Western market to fuel 
increased production. Ice cream and mix manufacturers note an increase 
in orders from restaurants offering seasonal specialty ice cream and 
shake flavors. Western cream loads are crossing state borders and also 
clearing into the Central region to active interest. The range for 
cream multiples narrowed compared to last week, 1.00 to 1.25. At the 
CME Group, Grade AA butter closed Wednesday at $1.7200, down $.0100 
compared to a week earlier.  The milk supply in Washington state 
and Oregon is described as decent and sufficient for production 
needs, but is not trending as high as had been expected.  Very 
nice weather could boost production soon.  From Seattle to 
Spokane, temperatures have reached the 60s by day, staying cool 
at night.  There were sprinkles early this week with sunny 
conditions as the week advanced.  In Western Washington the 
desert is turning green and reservoirs are full. Milk production 
in Utah and Idaho continues to be strong and increasing, helped 
by nice early Spring weather.  Producers have ample feed 
available at decent prices.  


1100CT Eric.Graf@ams.usda.gov 608.278.4153
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