MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI April 23, 2015 (REPORT 16) 

California haulers and dairy processors indicate milk intake volumes 
are plateauing in many areas around the state. The flush seems to have 
started earlier and neared the peak earlier than is usual. Components 
are also at or near the seasonal peak. Current weather is conducive to 
cow comfort. Sales into bottling are steady to somewhat higher, 
depending on features at retail outlets and orders from educational 
institutes. Milk production in Arizona is level, having reached the 
peak of the flush within the last two weeks. Daytime temperatures in 
the 90s have not had a noticeable impact on milk production. Class I 
demand is steady. Class II demand is steady to somewhat higher as ice 
cream accounts add production times to various lines. In New Mexico, 
dairy producers are sending higher volumes of milk to processing, 
although the rate of increase is gradually slowing compared to past 
weeks. Additional loads of manufacturing milk are stairstepping across 
the southwest states, looking for processing room. Class I demand is 
higher, but Class II demand is mixed, with seasonal strength emerging 
from stick/cup/cone manufacturers, but lower demand from specialty 
dairy drink producers.  The Western cream market is steady to firm, 
with butter producers in California actively bringing in cream loads 
from out of state. Other operations are selling cream because pricing 
is attractive and they do not want to speculatively produce butter at 
this time. Some additional cream demand is showing up from ice cream 
and similar accounts. Buyers are learning they have to respond quickly 
to f.o.b. and broker-based spot offers because cream demand is so 
active. Multiples shifted higher on the bottom, but are steady on the 
top, ranging from 1.22 to 1.29. At the CME Group, Grade AA butter 
closed Wednesday at $1.8300, up $.0600 compared to a week earlier.  
According to NASS, March milk production for the 23 selected states 
totals 16.9 billion pounds, 1.1% higher than one year ago.  March milk 
production changes from one year ago for selected Western states are 
as follows:  Arizona +1.4%, California -2.9%, Colorado +6.1%, Idaho 
+1.3%, New Mexico -3.9%, Oregon -1.3%, Utah +3.3% and Washington 
+1.1%. PACIFIC NORTHWEST milk intakes are trending seasonally 
higher, with production gains stronger in Washington than 
Oregon.  Some dairy operations in eastern portions of the 
region, especially in Oregon, have begun irrigation to encourage 
alfalfa growth. Milk processors are readily handling all milk 
coming into their facilities. Milk is easily available for any 
dairy manufacturing need and straining capacity in some areas. 
IDAHO and UTAH farm milk production is building and higher than 
levels a year ago.  Dry soil remains a concern in some of Utah.


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