MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Notes for DA240 Report 33

Madison, WI August 20, 2015 (REPORT 33)

California milk production is steady to lower. High temperatures 
above 100 degrees continue decreasing the comfort of the dairy 
herd. Processing capacity in the state is adequate to handle 
most of the milk production. Fewer milk loads are moving outside 
the state. The demand for bottled milk is higher as public 
schools reopen during the next week. Therefore, milk volumes 
into processing are decreasing. Class 2 sales are steady at 
customary levels. Arizona milk volumes are decreasing. The 
present excessive heat, topping 115 degrees, is taking a toll on 
milk yield. Milk loads moving into processing plants are lower 
in state and out of the state. Bottled milk sales are improving 
as schools recently reopened. Class II sales are steady. Milk 
pooled on the Arizona Order 131 totaled 384.6 million pounds in 
July 2015. Class I utilization accounted for about 28.2% of 
producer milk. The uniform price was $15.76, $.19 below last 
month, and $7.97 below one year ago. New Mexico milk output is 
unchanged to lower. The butterfat component of the milk is 
slightly declining. Bottling orders from other states declined 
as school pipelines are full. Orders into bottled milk are 
noticeable increasing. Some areas of New Mexico are finishing 
the fourth cutting of alfalfa hay. According to DMN National 
Retail Report-Dairy for week of August 14 - 20, the weighted 
average advertised price for one gallon of milk is $1.99 in the 
Southwest and Northwest but $2.04 for the U.S. According to some 
contacts in the Pacific Northwest, milk production has exceeded 
expectations this summer. Although the region has experienced 
several heat waves, milk intakes have rebounded with each period 
of cooler temperatures. The net effect has been a slow seasonal 
decline in milk production. Bottling demand is now increasing 
with the start of school terms. There has not been much decrease 
in Utah/Idaho milk production. Manufacturers report there is 
still plenty of milk for processing. Small grain harvest is 
progressing and the corn crop looks promising. Industry contacts 
state high quality hay may be less available due to the 
occasional showers and thunderstorms that have made making hay 
more difficult. Good and fair quality hay is more available. 
Western cream demand from ice cream manufacturers is trending 
lower. The demand for cream from butter churns operators is 
strong with expectations to increase during Q4. Cream 
inventories vary throughout the West, but are mostly tight. West 
cream multiples are steady to lower, ranging from 1.25 to 1.50. 
At the CME Group, Grade AA butter closed Wednesday at $2.2700, 
up $0.2550 compared to a week ago. According to NASS, July milk 
production for the 23 surveyed states totals 16.6 billion 
pounds, 1.2% higher than a year ago. July milk production 
changes from a year ago for selected Western states are as 
follows: Arizona +2.4%, California -3.3%, Colorado +2.6%, Idaho 
+0.7%, New Mexico -4.2%, Oregon -2.3%, Utah +2.1%, and 
Washington +0.2%. Monthly milk production per cow for the 23 
surveyed states was 1,921 pounds. Milk cow numbers on farms in 
the 23 selected states totaled 8.63 million cows, 47,000 head 
more than July 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: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home