MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI December 3, 2015 (REPORT 48)

Farm level milk output is steady in California. Fluid milk intakes 
moving into Class 1 and Class 2 are noticeably increasing. Orders 
from bottlers are improving as schools reopened during this week. In 
addition, bottled milk demand from retailers and food service is 
seasonally inching up. After the long Thanksgiving holiday weekend, 
some processors are planning milk delivery focused on the end year 
holidays. The November 4a price (butter/powder) in California is 
$16.57, up 85 cents from the previous month, but $1.57 lower than 
last year. This compares to the Federal Order Class IV price of 
$16.89 for November. The November 4b price (cheese) is $14.43, 32 
cents lower than last month, and $4.27 lower than last year. This 
compares to the Federal Order Class III price for November at $15.30. 
Arizona milk production is ramping up, heading into the seasonal 
flush. The cooler temperatures and dry weather are helping to raise 
cow comfort. Bottled milk sales are steady. Demand for condensed skim 
from ice cream producers running seasonal holiday flavors is 
improving. However, the ice cream demand is below the latest summer's 
levels. Wintry weather conditions affected New Mexico by the end of 
last week. As a result, farm level milk production is slightly lower. 
In addition, this weather pattern caused some operational issues in 
some balancing plants. However, manufacturing milk volumes are more 
than adequate. Fluid milk sales into Classes I are higher. Sales into 
Class II are seasonally rising. The state is finishing the last 
cutting of alfalfa hay. Pacific Northwest milk production is mostly 
steady to slightly lower. Manufacturers are readjusting milk 
distribution after the extended Thanksgiving holiday weekend. 
Bottling demand is good with containers of higher fat milk taking a 
larger proportion of the sales. Rain and snow are falling and much of 
the region is expecting significant precipitation over the next week. 
Farmers are hopeful the precipitation will improve soil moisture 
levels and build the snowpack for next year's growing season. Utah 
and Idaho milk production is steady. Manufacturers report no problems 
getting milk for processing needs. A few processors are buying 
additional spot loads of milk to run the plants at full production. 
Interest for cream from butter makers is markedly improving, as the 
year-end holidays approach. In addition, the demand from holiday ice 
cream, cream cheese, and whipped cream makers remains strong. Cream 
supplies are moving throughout the West but are tight is some states. 
Cream multiples are steady to higher, ranging from 1.14 to 1.28. At 
the CME Group, Grade AA butter price on Wednesday closed at $2.9050, 
up $.0050 from a week ago.
Dairy Market News Reporting Change Notice
Upon the conclusion of the October 2015 industry comment period and a 
review of industry responses, Dairy Market News (DMN) is updating the 
Dairy Market News Working Guidelines, effective Report 1, January 
2016. The updates will allow DMN market reports to additionally 
include information and sales prices reported by individuals and 
firms functioning as marketing agents selling on the behalf of dairy 
product manufacturers. The Working Guidelines updates are intended to 
capture more information on pricing and market conditions and reflect 
the evolution of the marketing of dairy products. Currently, market 
pricing information is collected for first sale, f.o.b. producers' 
plants or warehouses. 

Link to current and updated DMN working guidelines:
http://www.ams.usda.gov/market-news/individual-dairy-market-news-
commodity-reports

December 1, 2015

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-
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