MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI April 2, 2015 (REPORT 13) 

In California, milk production is generally steady. Some processors 
indicate the flush plateaued in the last few weeks. Temperatures are 
warming throughout the state and processors indicate this warming 
trend is ahead of the usual arrival of 80+ degrees daytime 
temperatures. Demand for bottled milk inched higher from some accounts 
related to educational institutions. The big shopping weekend for many 
holiday items was last weekend, but a few stores are restocking for 
late in the week demand for perishables, such as milk. Feed 
availability is generally steady, with alfalfa being locally baled. 
Feed value varies, with some availability of dairy quality forages. 
The March 4a price (butter/powder) in CALIFORNIA is $13.42, up $.33 
from February 2015, but $9.95 lower than last year. This compares to 
the Federal Order Class IV price of $13.80 for March. The March 4b 
price (cheese) is $13.97, $.22 more than last month, but $8.19 lower 
than last year. This compares to the Federal Order Class III price for 
March at $15.56. Water remains a primary concern for the agricultural 
community. In the Sierra Nevada Mountains, some locations regularly 
used for snowpack measurement are barren of snow. Electronic 
measurements taken over the weekend showed the snowpack contains about 
6 percent of the usual water content for this time of year. Rising 
temperatures over the last few weeks, with fewer hours of relief 
during the night, are leading to a slowing in increases of milk pickup 
volumes from some dairy operations. Daytime temperatures are regularly 
hitting above 90 degrees and temperatures are slow to decline during 
the night to the mid 50s to give cows some relief. Growers indicate 
the early alfalfa crop is off to a good start, with most fields rated 
as good to excellent. Manufacturing is active and clearing condensed 
skim. Class I sales were active at the beginning of the week, but 
tapered off as the week advances. Retailers ordered ahead of the 
weekend to meet the needs of early holiday shoppers. Ice cream/frozen 
dessert manufacturers are steadily taking cream loads as that demand 
ramps up. In New Mexico, milk production made gains atop last week's 
volumes. Sales into Classes I and II, though, took lower volumes out 
of the manufacturing stream, as the school meal program pipeline is 
full once again. Processors relied on active cheese and NDM production 
to clear all intakes. Some dairy operators report shortages on various 
forages. For future harvest, though, a majority of alfalfa is rated as 
good (46%) or excellent (37%). Cream demand is active throughout the 
Western region, with loads from many states crossing borders and 
clearing into ice cream and whipped cream, sour cream, cheese, and 
butter. California cream loads are generally staying within state 
borders, with active demand into those same end uses. Sellers remarked 
especially on the strong demand continuing from churn operators. There 
was some expectation that both pricing and demand would decline ahead 
of the spring holidays, but that has not happened. Cream multiples are 
unchanged to higher, 1.15 to 1.28. At the CME Group, Grade AA butter 
closed Wednesday at $1.7600, up $.0750 compared to a week earlier.  
Pacific Northwest milk production volumes are stable to heavier.  
Milk supplies are ample for fluid needs and are moving into 
various manufacturing uses, causing active schedules in many 
manufacturing plants. College and school vacations continue to 
make Class I demand uneven and send additional volumes to 
manufacturing plants.  Weather conditions have been seasonally 
mild and generally conducive to milk cow comfort at the farm 
level. With many day temperatures in the 60s and 70s, Utah and 
Idaho milk production is trending slightly higher at levels 
above a year ago.  Whether there is adequate soil moisture 
remains a concern.  Plant schedules are active to process the 
available milk supplies.  Some milk is moving within the states 
to balance needs and enhance plant efficiencies. 

1100CT Eric.Graf.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