MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Notes for DA240 Report 50

h/w/page4/Westmilk

Madison, WI December 17, 2015 (REPORT 50)

Winter storm Echo is causing wintry weather in the Southwest. 
However, the effects to the milk yield are marginal. Milk production 
is steady in California. Class 1 sales are mixed as most schools will 
be closed for winter break during next week. Nevertheless, bottled 
milk sales to grocery stores and restaurants are higher. The January 
2016 Class 1 prices in California are $17.88 in the north and $18.15 
in the south. The statewide average Class 1 price based on production 
is $17.90. This price is 44 cents lower than December 2015 and $1.61 
lower than January 2015. Arizona milk production is at the peak of 
the seasonal flush. Lower temperatures, averaging 60 degrees, are 
helping dairy cow comfort. In addition, the butterfat component level 
of milk is improving. Bottled milk sales are decreasing. Sales into 
Class II are flat. Condensed skim manufacturing is steady to lower. 
Milk pooled on the Arizona Order 131 totaled 381.3 million pounds in 
November 2015. Class I utilization accounted for about 28.4% of 
producer milk. The uniform price was $17.28, $0.48 above last month, 
but $3.91 below one year ago. New Mexico milk output is higher, 
heading up to the seasonal flush. Sales into Class I are lower. Class 
II sales are steady. Condensed skim processing for the holidays has 
been completed. Manufacturing milk volumes moving into cheese plants 
are steady to lower. According to the DMN National Retail Report-
Dairy for the week of December 11-17, the national weighted average 
advertised price for one gallon of milk is $2.64, $2.43 in the 
Southwest and $2.50 in the Northwest. Pacific Northwest milk 
production is coming up from the seasonal low seen earlier this 
month. Industry contacts say components are also improving. Bottling 
demand is strong, but some milk is expected to shift back into 
manufactured products as the holidays get closer. Utah and Idaho milk 
production is steady. A winter storm brought snow to parts of the 
region earlier this week. The snow, while good for next spring's 
water supply, made transporting milk a little more difficult for a 
short time. Milk pooled on Pacific Northwest Order 124 totaled 711.7 
million pounds in November 2015. Class I utilization accounted for 
about 23.4% of producer milk. The uniform price was $16.68, $0.40 
above last month, but $3.50 below one year ago. In the West, cream 
supplies are steady to higher as most of ice cream, egg nog, sour 
cream and cheese cream processing for the holidays is completed. 
However, butter churning is active. Multiples for all classes are 
lower, ranging from 1.05 to 1.18. At the CME Group, Grade AA butter 
price on Wednesday closed at $2.0775, 71.25 cents lower from a week 
ago. 


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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