MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST
Madison, WI July 16, 2015 (REPORT 28)
Milk output in California is lower. The water crisis continues to 
negatively affect major parts of milk operations. Some dairy farmers 
are leasing out hay/corn land to mitigate shortened returns related to 
expensive feed and water costs. Sales for Class 1 and 2 are steady. 
The August 2015 Class 1 prices in California are $17.66 in the north 
and $17.93 in the south. The statewide average Class 1 price based on 
production is $17.67. That production average price is $0.77 lower 
than July 2015 and $7.63 lower compared with $25.30 reported in August 
2014. The milk production in Arizona is trending lower as an extended 
string of hot days is decreasing cow comfort. Some plants are getting 
loads from nearby states, helping to clear regional milk volumes. 
Local demand for Class I is higher, but steady out of state. Sales for 
Class II condensed skim are unchanged. Bottling sales are steady, 
following seasonal trends. The school terms will resume in a few 
weeks, and bottlers are beginning the process of refilling milk 
pipelines. Milk pooled on the Arizona Order 131 totaled 396.9 million 
pounds in June 2015. Class I utilization accounted for about 26.4% of 
producer milk. The uniform price was $15.95, $.28 above last month, 
but $7.38 below one year ago. New Mexico milk production is waning. 
However, in-state processing plants are handling plentiful intakes. 
Some loads of milk are going out of state to be processed. The state 
is between the third and fourth cutting of alfalfa hay. Dairy farmers 
are expecting an improvement in the quality of feeding hay due to 
recent showers. Sales for Class I are higher. According to DMN 
National Retail Report-Dairy for week of July 10 to July 16, the 
weighted average advertised price for one gallon of milk in the 
Southwest is $2.81, the same as the national price. The interest for 
cream is strong. Ice cream and frozen dessert plants continue to clear 
up cream volumes. Cream inventories are tight. This is increasing 
cream multiples, ranging from 1.23 to 1.50. Grade AA butter closed 
Wednesday at $1.8525, down $0.0675 compared to a week ago. Milk 
production in the Pacific Northwest is slowing somewhat, following the 
typical seasonal pattern. Manufacturers still report plenty of milk is 
available for processing. Temperatures have moderated somewhat, but 
still remain warm, especially in Eastern Washington and Oregon. Summer 
ice cream production continues to provide strong demand for cream. 
Slightly lower temperatures have provided some relief to cows across 
Utah and Idaho. Processors are reporting a decline in milk components, 
especially in pasture-based herds. Overall, milk volume is still 
plentiful to keep plants running at capacity. There is still good 
demand for cream from inside and outside the region. Industry contacts 
report good quality dairy forage is a little tight.


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