MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI April 30, 2015 (REPORT 17) 

Milk production in California is steady to marginally lower. The 
relocation of a few dairy operations caused some seesawing of milk 
intakes at a few plants. Water availability is still a concern as the 
growing season advances, with some operators switching to drip 
irrigation methods where practical. The alfalfa harvest is ongoing. 
Retail orders for bottled milk are steady. The pipeline supplying 
school districts is refilled, and bottling plant operators report 
there are few variations coming forward from school-related orders.  
Arizona dairy operators note milk production has plateaued. Components 
are steady to declining as daytime temperatures increase. This week's 
forecast shows 100 degrees as the daytime high for the areas around 
Phoenix and Yuma. Class I interest is steady at seasonal volumes, with 
continued active sales of flavored milk varieties. Alfalfa harvesting 
is ongoing, with about 85 percent of state acreage being cut. New 
Mexico dairy processors note volumes hauled into processing plants 
eked out another increase this week. However, they predict the peak of 
the flush is nearing as the week over week increases are declining. 
There are some shortages of forages. Sales into Class I are steady to 
slightly higher. Class II sales decreased this week as ice cream and 
frozen dessert manufacturers realign inventories with orders or work 
on plant repair/maintenance/inspection. Cream sales in the Western 
region are active. A few butter manufacturers continue to actively buy 
weekly cream loads available via resellers and dairy plant operators. 
Ice cream/frozen dessert producers' demand for cream has ticked up 
slightly as warmer weather arrives in the Western states. This demand 
ties in with summer sports seasons opening for youth, adult, and 
professional leagues and increasing orders for individual serving 
items. Buyers are learning they have to respond quickly to f.o.b. and 
broker-based spot offers because cream demand is firm. Multiples are 
steady, ranging from 1.22 to 1.29. At the CME Group, Grade AA butter 
closed Wednesday at $1.8500, up $.0200 compared to a week earlier.  
Pacific Northwest milk production is increasing as expected for 
this time of year.  Weather is good for cows and crops, with 
daytime highs in the 70's and down to the 50's at night in much 
of the region.  Milk is moving smoothly.  Corn planting is 
underway with good progress being made, especially in 
Washington.  Idaho and Utah milk production is also increasing 
as expected.  The volumes of milk keep manufacturing plants 
operating with busier schedules.  Alfalfa growth is looking good 
and corn planting is underway.  Rain occurring in Utah this week 
is welcome to help crop progress.  Weather in both states with 
highs in the 70s and night lows in the 40s to 50s, is good for 
milk production.




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