MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST
Madison, WI July 23, 2015 (REPORT 29)
California milk output is trending steady to seasonally lower. 
The demand for bottled milk is steady at customary summer 
levels. Sales for Class 2 are steady this week. Industry 
contacts are reporting a waning in the solid components of the 
milk. Some milk producers are opting to dry off cows until 
temperatures begin to drop. Dairy operators continue importing 
fair/good alfalfa hay from other states. According to California 
Department of Food and Agriculture, June 2015, Class 1 sales 
total 51.4 million of gallons in state and 1.6 million of 
gallons out of the state. This represents a decrease of 3.4% and 
27.7% respectively, compared with June 2014. Arizona milk 
production is trending lower. Seasonal high temperatures and a 
rise in humidity are increasing the stress of dairy cattle. 
Dairy manufacturers are processing local milk intakes, as well 
as clearing up milk volumes from nearby states. Sales for Class 
II are steady. Bottling orders are following seasonal trends 
with an expectation to move higher as schools re-open in the 
next few weeks. The milk output in New Mexico is slightly down. 
Loads of milk are going out of the state, helping in-state 
processors clear up milk supplies. Sales for Class I are lower. 
Class II sales are higher, as ice cream/frozen dessert plants 
are actively taking condensed skim milk supplies. According to 
DMN National Retail Report-Dairy for week of July 17 - July 23, 
the weighted average advertised price for one gallon of milk in 
the Southwest is $3.72, 74 cents above the national price. Milk 
production in the Pacific Northwest is following typical 
seasonal patterns and is slowing. Manufacturers report milk is 
readily available for processing. Some rain is forecast for 
parts of the region for the coming week and may provide 
localized cooling. Warm daytime temperatures and slightly cooler 
temperatures at night have provided seasonal weather for Utah 
and Idaho. Milk production in the area is slowing and following 
seasonal declining patterns. Manufacturers are reporting there 
is still enough milk for processing needs. Some processors note 
a decline in protein content and a reduction of cheese yields. 
Cream supplies are moving among Western states to satisfy the 
high demand from ice cream, butter, and cream cheese 
manufacturers. However, cream inventories are still tight and 
very low in some areas of the region. Cream multiples for the 
West are unchanged, ranging from 1.23 to 1.50. At the CME Group, 
Grade AA butter closed Wednesday at $1.8750, up $0.0225 compared 
to a week ago. According to NASS, June milk production for the 
23 surveyed states totals 16.4 billion pounds, 0.7% higher than 
a year ago. June milk production changes from a year ago for 
selected Western states are as follows: Arizona +2.0%, 
California -4.3%, Colorado +2.6%, Idaho +1.0%, New Mexico -4.5%, 
Oregon -3.2%, Utah +3.2%, and Washington -0.4%. Monthly milk 
production per cow for the 23 surveyed states was 1,895 pounds. 
Milk cow numbers on farms in the 23 selected states totaled 
8.628 million cows, 56,000 head more than June 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