MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI March 19, 2015 (REPORT 11) 

CALIFORNIA farm milk production managed to post some week over week 
gains at many receiving locations. Processors note components are 
stepping gradually lower as daytime temperatures increase. Sales into 
Class 3 (ice cream, frozen dairy dessert mix) are steady to higher as 
those manufacturers ramp up production ahead of spring holidays. 
Bottler sales are steady to lower as various school districts revamp 
orders to coordinate with fewer meals served during the spring break. 
Milk production in ARIZONA is still trending higher. Processors are 
scrambling a little because of equipment problems and scheduled 
maintenance. Bottler sales are mostly lower as school district orders 
trend lower for spring break. Milk pooled on the Arizona Order 131 
totaled 383.1 million pounds in February 2015.  Class I utilization 
accounted for about 26.4% of producer milk.  The uniform price was 
$15.56, $.48 below last month, and $8.28 below one year ago.  NEW 
MEXICO milk production is higher for the week, aided by comfortable 
daytime temperatures and cool nights. The overall milk supply into the 
state increased as outlying handlers look for processing room. On the 
other side of the processing equation, problems at an out-of-state 
facility curtailed receiving into that plant for several days. The 
remaining plant operators are doing what they can to get milk 
processed. While Class I orders are down, Class II orders took up some 
of those loads. Class II manufacturers have increased production at 
regular intervals to stay one step ahead of near term consumer demand, 
which is increasing seasonally. Bottler demand is lower. Cream 
availability tightened across the Western region, with active draws 
from cheese, butter, sour cream, and eggnog. Some out-of-state cream 
is clearing into California to make up for shortfalls in internal 
cream supplies. Unseasonably warm temperatures in the southern part of 
California are prompting an early interest in ice cream, soft serve, 
and frozen desserts. Throughout the region, print butter production is 
also continuing ahead of the spring holidays. Some contacts indicate 
this week is the last push to satisfy pre-holiday consumer outlet 
orders. Cream multiples are shifted higher on the bottom of the range, 
but the top is steady, 1.14 to 1.25. At the CME Group, Grade AA butter 
closed Wednesday at $1.6800, down $.0250 compared to a week earlier. 
Conditions in Western Washington are resulting in increased milk 
volumes, characterized as lots of milk by varied sources.  This 
is expected to increase in coming weeks.  A cautionary factor is 
that this spring is one of the driest in recent years. While the 
snowpack is still good and water in reservoirs seems adequate 
for now, the lack of much spring rain for over a month is 
drawing increasing concern looking ahead.  The flush in Oregon 
seems to be here.  Discounted spot milk was available this week. 
Utah is expecting an early flush.  Milk supplies have been 
increasing with more expected in the next few weeks.  Milk 
supplies now are very good.  Utah and Idaho milk production is 
moving up week over week.


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