MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI August 27, 2015 (REPORT 34)

Milk output in California is steady. Temperatures in the Central 
Valley are slightly lower. Milk volumes into local manufacturing 
plants are lower, as well as shipments out of the state. 
Bottling sales are higher as most of the public schools are 
reopening. Sales for condensed skim are quiet with expectations 
to increase as Labor Day Holiday approaches. July 2015 pool 
receipts of milk in California total 3.27 billion pounds, 4.4% 
lower compared to July last year, according to California 
Department of Food and Agriculture. Year-to-date through July 
2015 receipts are 4.1% lower from the comparable months in 2014. 
The July Value at Test price is $14.95, $.41 lower than June 
2015 and $6.64 lower than July 2014. The percentage of receipts 
used in Class 1 products is 13.15%. The July quota price is 
$16.02 and the over quota price is $14.32. These prices are $.32 
lower than July 2015 and $6.51 lower than a year ago. Milk 
output in Arizona is seasonally lower. Temperatures remain high, 
adversely affecting cows' comfort and milk yield. Some nearby 
processors continue helping to clear up milk volumes from 
Arizona's producers. Sales for Class I are higher as schools 
recently reopened. Sales for Class II are steady. Milk 
production in New Mexico is increasing slightly as favorable 
cool temperatures are improving milk production. The percentage 
of butterfat component of the milk is marginally improving. Milk 
volumes into manufacturing are adequate. Class I sales are 
higher in the state and out of the state. Class II sales are 
steady. The state is into the fourth cut of alfalfa hay. 
According to DMN National Retail Report-Dairy for week of August 
21 - 27, the weighted average advertised price for one gallon of 
milk is $2.32 in the Southwest, $2.50 in the Northwest and $2.57 
for the U.S. Pacific Northwest milk production is in a slow 
seasonal decline. With each heat wave, production takes a small 
dip, but bounces back with each period of cooler temperatures. 
Bottling demand is increasing as schools begin their fall terms. 
Milk available for processing is adequate. Small grain harvest 
is nearing completion. Pasture and rangeland are generally in 
poor condition. The wildfires along the Idaho/Oregon border have 
not interfered much with getting milk to processors. But the 
fires have impacted air quality. Lack of rain has increased the 
concern for additional fires to develop. Milk production is 
steady to lower for Utah and Idaho. Manufacturers report having 
adequate supplies of milk for processing, even though there is 
an increase in milk going into bottling. Western cream demand 
from butter churns and cream cheese is strong. The increase in 
milk bottling is making cream more available for processing. 
However, the butterfat component remains low around the region. 
Therefore, cream supplies in the West are mostly tight. West 
cream multiples are steady, ranging from 1.25 to 1.50. At the 
CME Group, Grade AA butter closed Wednesday at $2.2925, 
increasing 2.25 cents from last Wednesday.



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