MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI March 26, 2015 (REPORT 12) 

Farm milk production in California is mixed. Some processors report 
the trend toward higher weekly intakes has plateaued. Other processors 
indicate milk intakes are steady. Some Central milk loads are clearing 
into California and pushing intake volumes closer to capacity. In 
general, in-state milk intakes are below year ago volumes. Dairy 
producers also report first cutting alfalfa is lower in quality than 
hoped for, and access to corn silage may decrease as some growers may 
replace corn for silage with sorghum for silage as a means of 
decreasing water demand. Class 1 demand is steady at lower levels as 
some school districts are on hiatus for the week. February 2015 pool 
receipts of milk in California total 3.16 billion pounds, 4.5% lower 
compared to February last year, according to California Department of 
Food and Agriculture.  Year-to-date through February 2015 receipts are 
4.2% lower from the comparable months in 2014.  The February Value at 
Test price is $14.75, $.52 lower than January 2015 and $8.12 lower 
than February 2014. The percentage of receipts used in Class 1 
products is 13.13%.	 The February quota price is $15.53 and the over 
quota price is $13.83.  These prices are $.32 lower than January 2015 
and $7.86 lower than a year ago.  Milk production in Arizona is steady 
to slightly higher and milk processors anticipate the peak will arrive 
within the first two weeks of April. Daytime temperatures are holding 
in the 90s. Class I demand is higher as school districts place orders 
to refill meal program needs. Ice cream manufacturers are also taking 
more condensed skim and cream loads as temperatures climb and interest 
in frozen dessert items increases. Milk handlers in New Mexico report 
steady volume increases occurring from dairy farms. The rate of 
increase from week to week is uneven, though, and showing signs of 
trending lower. Class I sales bounced back as school districts renewed 
orders, but Class II interest is unchanged. Despite continued pushback 
from a few bottlers and maintenance schedules slowing throughput, 
plant operators are finding ways to process all milk without depending 
on out of state processors. Availability of cream supplies in the West 
varies from state to state. Churning continues actively, and producers 
continue to segregate production among conventional and specialty 
varieties. However, demand from aerated cream manufacturers is rising 
as the berry season advances in California. Ice cream manufacturers 
are taking additional cream loads also. Cream multiples are higher, 
1.15 to 1.27. At the CME Group, Grade AA butter closed Wednesday at 
$1.6850, up $.0050 compared to a week earlier.  According to NASS, 
February milk production for the 23 selected states totals 15.1 
billion pounds, 1.7% higher than one year ago.  February milk 
production changes from one year ago for selected Western states are 
as follows:  Arizona +2.9%, California -3.8%, Colorado +7.6%, Idaho 
+1.5%, New Mexico -3.7%, Oregon +0.5, Utah +6.9% and Washington +2.4%. 
Milk production levels remain moderate to heavy in the Pacific 
Northwest.  Milk supplies are available and being moved around to find 
processing homes.  Class I demand is uneven with schools and colleges 
taking or preparing for spring breaks.  Processing plants are running 
on moderate to heavy schedules to handle the incoming milk supplies.  
Weather conditions have been seasonally mild and generally conducive 
to milk cows at the farm level. Spring-like conditions are prevalent 
over most of Utah and Idaho.  Farm milk production is trending 
slightly higher at levels above a year ago.  Plant schedules are 
active to process the available milk supplies.  Some milk is being 
moved strategically to balance needs.  



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