MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI September 3, 2015 (REPORT 35)

Milk production in California is steady to lower. High heat and 
humidity are taking a toll on the milk yield. The lack of water 
is limiting the production of hay and corn. In addition, some 
milk producers continue having lower returns due to the high 
cost of water. Milk volumes into processing are lower but 
sufficient to meet the local demand. Orders from bottlers are 
higher to serve current needs of school and grocery stores. 
Class 2  sales are active as the holiday weekend is near. Milk 
output is lower in Arizona. Wet conditions caused by heavy rains 
are triggering health problems such an increase of SCC in dairy 
cows. Manufacturing milk volumes are lower. However, local 
processing plants are running along planned schedules. The 
demand for bottled milk from schools and retailers is higher. 
Class II sales are steady to lower. Harvesting of fair/good 
quality alfalfa hay is active around the state. Favorable 
weather conditions in New Mexico are improving comfort of dairy 
cows. The milk output in the state is higher. Milk volumes into 
local manufacturing plants are adequate. However, shipments from 
out the state processors are lower as some maintenance work is 
occurring throughout the week. Bottling sales are steady to 
lower, as most of the school pipelines are full. Class II sales 
are lower. New Mexico is between the fourth and fifth cutting of 
fair/good alfalfa hay. According to DMN National Retail Report-
Dairy for week of August 28 - September 3, the weighted average 
advertised price for one gallon of milk is $3.29 in the 
Northwest and $2.51 in the Southwest and the U.S. Cooler 
temperatures and a little moisture have aided cow comfort in the 
Pacific Northwest. Some storms moved through the area over the 
weekend, with localized high winds and power outages along the 
Northern Oregon coast. Although milk production is in a slow 
seasonal decline, manufacturers report good milk intakes. 
Bottling demand has increased with the start of schools and some 
bottlers note an increased demand for whole milk. Milk available 
for processing is adequate. Milk production in Utah and Idaho is 
steady to lower. Milk intakes are adequate for processing with 
only a minimal impact from increased bottling demand. Farmers 
are busy working on fourth crop hay. As a whole, the hay crop 
may be a little lower quality than in typical years due to 
scattered showers throughout the summer. Dairy farmers are 
adjusting rations accordingly. The corn crop looks good and 
there should be good supplies of corn silage. The supplies of 
cream are mixed throughout the West. Higher milk volumes into 
bottling are increasing the availability of cream for 
processing. Cream demand from butter and cream cheese makers 
continues strong. The demand for cream from ice cream 
manufacturers is waning. West cream multiples are steady to 
lower, ranging from 1.25 to 1.40. At the CME Group, Grade AA 
butter closed Wednesday at $2.4200, increasing 12.75 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