MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST
Madison, WI August 6, 2015 (REPORT 31)
California milk output is waning week after week. Moreover, 
production is below the previous year levels. Cows' stress is 
still increasing as temperatures remains high during current 
seasonal long days. In addition, some dairy operations are 
drying off cows with low yield. Milk volumes for processing are 
adequate in California. Spot milk shipments are quiet with few 
loads moving outside the state. Class 1 and 2 sales are steady 
at customary levels. Hay harvesting is ongoing in a few areas. 
However, some dairy operators are importing alfalfa hay from 
nearby states. Others have left their hay fields in an 
unproductive state to conserve water for other operational 
purposes. Arizona milk volumes are decreasing as the season 
advances. The current excessive heat with temperatures ranging 
from 110 to 115 degrees is taking a toll on cows' comfort. Milk 
volumes for manufacturing are lower. Sales for bottled milk are 
higher as most of the schools reopen this week. Some 
manufacturers are reducing production of condensed skim, as spot 
prices remain low. Therefore, sales are lower. Milk production 
in New Mexico is lower. Some processors report a little decline 
in the butterfat component of the milk. Levels of milk into 
processing facilities are slightly lower. However, milk levels 
into nonfat dry milk are noticeably lower. Producers continue 
shipping adequate milk volumes to neighboring state 
manufacturers. Sales for Class I are steady but lower for Class 
II. Most of the corn and hay to feed the dairy herd is of good 
quality. In addition, New Mexico is into the fourth cutting of 
alfalfa hay. According to DMN National Retail Report-Dairy for 
week of July 31 - August 6, the weighted average advertised 
price for one gallon of milk is $2.29 in the Southwest, $1.69 in 
the Northwest, and $2.36 for the U.S. In the Pacific Northwest, 
the daily fluctuations in temperature have not seemed to 
significantly impact milk production. Dairy observers note a 
little more tightness of milk due to the typical summer milk 
production declines, but there is still plenty of milk for 
processing needs. Bottling demand is beginning to increase with 
the start of school terms in the next few weeks. Some seasonal 
decline has been noted for Utah/Idaho milk production. Milk 
production often peaks for Idaho during the month of July. This 
year, the peak seemed to come a little earlier, but held steady 
through the month. Components have dropped off with summer heat. 
Manufacturers report milk is readily available for processing 
needs. Grain harvesting is ahead of schedule and industry 
contacts note crops look good. Pastures and rangeland are mostly 
in fair to good condition. Western cream demand from butter 
churns and cream cheese makers is strong, but is slightly lower 
from ice cream manufacturers. Inventories of cream are mostly 
tight in the region. West cream multiples are higher to steady, 
ranging from 1.25 to 1.60. At the CME Group, Grade AA butter 
closed Wednesday at $1.9900, up $0.0825 compared to a week ago.



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: http://www.ams.usda.gov/market-
news/dairy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home