MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI May 21, 2015 (REPORT 20)

CALIFORNIA producers indicate a decline in milk production due to poor 
feed quality. Class 1 demand is mixed. Last week it was down, this 
week is slightly up. Finding trucking to haul milk from plant to plant 
continues to be an issue. ARIZONA milk production continues to decline 
as the weather is warmer. With the holiday weekend approaching, some 
manufacturers are looking for other homes for milk in order to 
complete maintenance projects or give employees time off. NEW MEXICO 
milk intakes are slightly lower this week, but are expected to 
increase next week. Bottling is lower due to some plants shutting down 
for maintenance issues. There were also some unexpected delays which 
led to lower processing. There has been no out of state spot CREAM 
coming into California. Manufacturers are using available cream for a 
variety of products.  Price ranges for spot cream are floating around 
$.35 per pound solids over Class. Cream supplies are flat to slightly 
down. Multiples are steady this week, ranging from 1.24 to 1.30. 
Buyers/end users balked at some cream spot loads priced above this 
range. At the CME Group, Grade AA butter closed Wednesday at $1.9300, 
down $.1300 compared to a week earlier.  Industry contacts suggest 
PACIFIC NORTHWEST milk production is beginning to plateau. 
Manufacturers and bottlers continue to report adequate milk intakes to 
meet production needs. The upcoming holiday weekend and end of school 
terms are expected to also increase milk available to processing in 
the near future. Currently, there have not been any indications of 
weather or feed issues impacting milk production.  However, dairy 
market participants are concerned about the lack of snow pack 
providing water for crops and livestock. The Governor of the State of 
Washington declared a statewide drought emergency on May 15, 2015. 
IDAHO and UTAH milk is still readily available. Recent rains may have 
helped improve the water levels stored in area reservoirs, but dairy 
contacts are concerned about the lack of snow pack reducing available 
water for the coming summer. According to NASS, April Milk Production 
for the 23 selected states totals 16.6 billion pounds, 1.7% higher 
than one year ago.  April milk production changes from one year ago 
for selected Western states are as follows:  Arizona +2.4%, California 
-2.1%, Colorado +6.1%, Idaho +2.4%, New Mexico -1.4%, Oregon -0.9%, 
Utah +5.6% and Washington +0.5%. 

1100CT Tara.Herbst@ams.usda.gov 608.557.7007
Mike.Bandli@ams.usda.gov 608.557.7010
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