MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI April 16, 2015 (REPORT 15) 

California milk production is flat to edging higher, with small 
upticks in intakes registering at several plants. Intake volumes are 
generally below those of one year ago.  Sales into bottling accounts 
moved higher as classes resume at most educational institutions 
throughout the state. Field work and forage harvesting continues. 
Water supplies remain a topic of concern for growers and dairy 
operations. Reports indicate requests for well drilling have resulted 
in a multi-month backlog. The May 2015 Class 1 prices in CALIFORNIA 
range from $17.06 in the north to $17.34 in the south.  The statewide 
average Class 1 price based on production is $17.08.  That production 
average price is $0.13 higher than April 2015, but $8.81 lower than 
May 2014. Milk production in Arizona is higher, approaching the peak 
of their predicated production season. Milk pooled on the Arizona 
Order 131 totaled 435.1 million pounds in March 2015.  Class I 
utilization accounted for about 26.1% of producer milk.  The 
uniform price was $15.33, $.23 below last month, and $8.89 below 
one year ago.  In New Mexico, milk haulers report incremental 
increases are still showing up in farm milk volumes heading into 
processing. Warmer daytime temperatures are advancing throughout the 
state, but are not hindering cow comfort. Processors indicate sales 
into bottlers improved slightly compared to one week ago. Ice cream 
and specialty drink accounts also took additional milk loads. The 
first cutting of alfalfa is underway in New Mexico, with 3 percent 
complete compared to 4 percent on the 5 year average. Western cream 
markets are active, with California buyers taking in cream from 
several other states due to in-state supply shortfalls and active 
butter demand.  Sales into ice cream and frozen dessert accounts are 
increasing seasonally, while sour cream and cream cheese use is 
trending lower. Cream sales into aerated cream accounts are also more 
active as berry season advances. Cream prices are firming, based on 
location, timing, and load characteristics. Multiples moved higher, 
ranging from 1.19 - 1.29. At the CME Group, Grade AA butter closed 
Wednesday at $1.7700, up $.0200 compared to a week earlier.  OREGON 
milk production is increasing seasonally as expected.  Some attention 
is being paid to southeast Oregon however, which is reported to be 
very dry.  There was less snow pack in that area than was desired.  
Moving forward, ground conditions will require rain to achieve normal 
moisture levels.  In WASHINGTON the gradual increase in production 
week over week continues to slightly increase.  Milk supplies are 
adequate and in balance.  UTAH and IDAHO milk production is building 
seasonally. Milk is readily finding buyers. Some milk is moving into 
the region for manufacturing. Tillage and planting operations have 
begun. 






1100CT Eric.Graf.usda.gov 608.557-7005
Janet.Linder@ams.usda.gov 608.557.7003
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