MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI March 12, 2015 (REPORT 10) **UPDATED

Haulers and processors in CALIFORNIA report milk volumes are about 
level with week ago volumes. Reports of increasing mastitis problems 
continue as an apparent result of showers moistening dry lot pens. 
Components are starting to taper off. Sales into bottling facilities 
are unchanged. Hard ice cream and soft mix manufacturers are running 
production lines and taking in condensed skim and cream loads. 
Production on stick/cup/cone seasonal lines has started at some 
locations. The April 2015 Class 1 prices in CALIFORNIA range from 
$16.94 in the north to $17.21 in the south.  The statewide average 
Class 1 price based on production is $16.95.  That production average 
price is $0.27 higher than March 2015, but $7.94 lower than April 
2014. ARIZONA processors report milk production is creeping higher and 
nearing the expected peak for the year. Daytime temperatures are 
approaching the low to mid 90s in the scattered dairy regions. Class I 
sales to bottlers are lower as various school districts close March 12 
- 20 for parent/teacher conferences and spring break. Ice cream 
manufacturers are taking steady volumes of condensed skim and cream. 
Milk production in NEW MEXICO restarted its upswing after pausing last 
week. Weather conditions improved in the eastern half of the state, 
which is helping cow comfort. Early in the week, haulers and 
processors were gradually working through loads staged at yards around 
the area. Those staged loads were the result of hazardous driving 
conditions the previous week. Class I and II orders shifted lower, 
eventually sending additional loads to Class IV. New Mexico 
manufacturing plants are also clearing additional loads from some out 
of state handlers. At midweek, a municipal water system failure 
delayed processing again and disrupted milk handling plans. Cream is 
actively clearing into butter churns to finish holiday print orders. 
Sales continue into ice cream/frozen dessert facilities. Some seasonal 
flavor production has started, especially for soft serve specialties. 
Cream cheese operations are also actively clearing cream ahead of the 
holidays. Cream multiples are slightly lower on the bottom, unchanged 
on the top of the range, 1.10 to 1.25. At the CME Group, Grade AA 
butter closed Wednesday at $1.7050**, down $.0450** compared to a week 
earlier.  Western Oregon temperatures warmer than normal have 
advanced growth of fields for hay production.  Pasture 
productivity is advancing and allowing more use of pastures.  
Milk production levels continue to rise. In Washington, a warmer 
than normal February has led to early growth of pastures.  First 
cutting hay is underway.  Milk production is up slightly from 
last week. It is hoped that the snowfall in Utah last week will 
benefit reservoirs which remain a matter of concern.  Mild 
temperatures this week have returned the state to early mild 
weather which has left alfalfa crops three weeks ahead of 
normal.  This has benefitted dairy producers by reducing the 
need for supplemental feed. Utah and Idaho milk production is up 
on a weekly basis.  No disruptions in milk transportation or 
processing are reported.

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