MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI June 25, 2015 (REPORT 25)

Milk intakes in California are declining week after week below last 
year. The severe drought is shorting soil moisture and water 
availability. Some dairy farmers are buying expensive water, which is 
adding to operating costs. Due to the current drought, part of the 
Central Valley is not producing alfalfa hay. With the decrease in 
availability of locally grown hay, some dairy producers are importing 
hay from Nevada, Oregon and Utah. Class 1 demand is mixed and Class 2 
is steady. May 2015 Pool Receipts of milk in California total 3.51 
billion pounds, 3.3% lower compared to May last year, according to 
California Department of Food and Agriculture.  Year-to-date through 
May 2015 receipts are 3.9% lower from the comparable months in 2014.  
The May Value at Test price is $15.00, $.34 higher than April 2015 and 
$6.96 lower than May 2014.  The percentage of receipts used in Class 1 
products is 12.63%.  The May quota price is $15.94 and the over quota 
price is $14.24.  These prices are $.39 higher than April 2015 and 
$6.83 lower than a year ago. Milk production in Arizona continues 
trending down. The high temperatures are increasing the heat stress of 
cows, negatively affecting their productivity. Processors continue 
receiving sufficient milk loads, and they are helping clear up milk 
volumes from neighboring states. Bottled milk demand is steady at 
customary summer levels. Milk production in New Mexico is trending 
seasonally lower. However, there are plentiful milk volumes in the 
state. In addition, milk is coming from out of the state. Some 
processors are running at full capacity. Some processors are clearing 
milk loads to Central states for bottling. The sales into Class I and 
Class II are slightly lower than last week. The market tone for cream 
is steady. Some churns are not operating due to regular maintenance. 
However, cream volumes are plentiful. A substantial portion of the 
cream produced is pulled by the needs of ice cream manufacturers.Cream 
multiples are a little higher than last week, ranging from 1.21 to 
1.25. Grade AA butter closed Wednesday at $1.8800, down $0.0150 
compared with the previous week. Pacific Norwest milk production has 
slowed slightly. The seasonal decrease in bottling has made milk more 
available for manufacturing. Processors report they still have access 
to plenty of milk. Very warm weather is expected for the upcoming week 
and may influence milk production, milk components and cow comfort. 
The National Weather Service issued an excessive heat watch and a heat 
advisory on Wednesday for parts of the Pacific Northwest.  The heat 
wave is expected to spread across the region over the next week. Cream 
is generally available, and some processors continue to sell a few 
loads of cream.  The seasonal increase in ice cream production is 
using some of this cream. Idaho and Utah milk production remains 
strong and milk is still readily available for processors.  Some 
manufacturers have started seeing the components in milk drop. Parts 
of the region expect an extended heat wave with high temperatures in 
the upper 90s to 110 for the next week. According to NASS, May Milk 
Production for the 23 surveyed states totals 17.2 billion pounds, 1.4% 
higher than a year ago.  May milk production changes from a year ago 
for selected Western states are as follows:  Arizona -0.2%, California 
-2.9%, Colorado +2.5%, Idaho +2.4%, New Mexico -2.3%, Oregon -2.2%, 
Utah +3.7%, and Washington +0.7%.  Monthly milk production per cow for 
the 23 surveyed states was 1,990 pounds.  Milk cow numbers on farms in 
the 23 selected states totaled 8.630 million cows, 72,000 head more 
than May 2014.  



1100CT Angel.Teran@ams.usda.gov 608-557-7011
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