MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI December 10, 2015 (REPORT 49)

Weather conditions have been favorable to the dairy cows in the 
Central Valley. As a result, farm level milk production is seasonally 
steady to higher in California. In addition, the butterfat component 
level of milk is improving. Bottled milk demand from groceries stores 
and food service is inching up throughout the week. Interest for 
condensed skim is going up as year-end holidays approach. In Arizona, 
lower temperatures and humidity are helping to boost the milk yield. 
Thus, milk production is on the rise, very close to the seasonal 
flush. Fluid milk sales into Class I are steady. Sales into Class II 
are higher. Condensed skim sales in the spot market are active. 
Current climate in New Mexico is suitable to the dairy herd. Some 
producers notice a slight dip in milk production. Bottled milk sales 
to retailers are slightly higher. Milk sales into Class II are 
steady. Condensed skim processing is active, focused on filling year-
end holidays orders. Manufacturing milk volumes moving into Class III 
are slightly lower. According to the DMN National Retail Report-Dairy 
for the week of December 4 - 10, the national weighted average 
advertised price for one gallon of milk is $2.43, $2.58 in the 
Southwest and $2.50 in the Northwest. Heavy rains and winds pounded 
the Pacific Northwest coast this week. Snow fell at higher 
elevations. Although the precipitation created some localized 
flooding, it expected to improve the soil moisture for a portion of 
the region. Aside from a few milk loads being diverted due to closed 
roads and long days for milk truck drivers, most milk found its way 
to the processors without issues. Milk production is steady. Utah and 
Idaho manufacturers report no problems getting milk for processing. 
Milk intakes are steady. Much of the region had rain and some snow. 
At lower elevations, a few days of warmer temperatures have improved 
cow comfort. At this point, some manufacturers are pulling less cream 
volumes in the West. However, demand from butter and cream cheese 
makers remains strong as year-end holidays approach. Cream supplies 
are more available in the region. Consequently, multiples are lower, 
ranging from 1.06 to 1.24. At the CME Group, Grade AA butter price on 
Wednesday closed at $2.7900, 11.5 cents lower from a week ago.

DAIRY PRODUCTS:  According to NASS, hard ice cream production in the 
West region for October 2015 is 16.67 million gallons, 0.8% more than 
a year ago, but 6.5% less than the previous month. 

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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