MD_DA240 DA MD DA240 FLUID MILK AND CREAM REVIEW - WEST Madison, WI December 23, 2015 (REPORT 51) Winter storm Ferus is bringing rain, snow, and high winds to California. There are some logistic hauling issues in the Sacramento Valley. Nevertheless, the overall effect to the farm level milk output in the state is minimal. Milk production is steady to higher in California. Sales into Class 1 and Class 2 are trending lower as some bottling plants will be closed over the extended holiday weekend. In addition, most schools will be closed during the winter break period. As a result, milk volumes clearing into Class 4a (butter/NDM) are increasing. Bottled milk demand from groceries stores and food service is active. According to California Department of Food and Agriculture, November 2015 pool receipts of milk in the state total 3.09 billion pounds. This is 5.0% lower compared to the same month a year ago. From January through November 2015, receipts are 4.3% lower from the comparable period in 2014. The Value at Test price is $16.59, 52 cents higher than previous month but $3.83 lower from a year ago. The percentage of receipts used in Class 1 products is 14.89%. The November quota price is $16.76 and the over quota price is $15.06. These prices are 16 cents higher than October 2015 but $3.94 below a year ago. Temperatures continue dropping in Arizona. This is boosting comfort of milking cows. Consequently, milk production is still inching up. Some producers note an increment in the butterfat component level of the milk. Some bottling plants are readjusting orders schedules, as some educational institutions will be closed during the current week. Thus, milk intakes moving into Class I and Class II are lower. Milk production in New Mexico is on the rise. Manufacturing milk volumes are heavy. Producers and processors are concerned about the snowstorm predicted for this weekend and its possible impact. Sales into Class I plants are lower. Some Class III (cheese) processors are cutting milk orders as they have operational problems with the clean in place (CIP) systems. As a result, milk volumes clearing into NDM and MPC are increasing. Pacific Northwest milk production is steady. Industry contacts say components are improving. Some milk is shifting back into manufactured products as bottling slows over the holidays. Weather damage created a few delays for milk shipping as heavy rains and high winds continued in parts of the region.Utah and Idaho milk processors have not seen any drop off in milk production. Milk is readily available and additional spots loads are available at Class. A winter storm brought a foot of snow to parts of the region earlier this week. The snow made transporting milk a little more difficult for a short time, but is a welcomed addition to the snow pack building in the mountains. Over the last couple weeks, a few milk haulers moved several loads of milk from the region to the southwest to fill some bottling needs. Western cream demand for cream is light. Supplies are steady to higher. Some butter processors are helping to clear up cream surplus. Thus, butter churning is active in the region. Multiples for all classes are mixed, ranging from 1.00 to 1.19. At the CME Group, Grade AA butter price on Wednesday closed at $2.0425, 3.5 cents lower from a week ago. According to NASS, November milk production for the 23 surveyed states totals 15.6 billion pounds, 0.6% higher than a year ago. Monthly milk production per cow is 2 pounds above November 2014. Milk cow numbers on farms in totaled 8.64 million cows, 37,000 head more than November 2014. November milk production changes from a year ago for selected Western states are as follows: November 2015 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Arizona 380 + 1.3 California 3,206 - 4.4 Colorado 305 + 3.4 Idaho 1,136 + 1.9 New Mexico 617 - 3.3 Oregon 197 - 1.5 Utah 177 - 1.1 Washington 524 - 0.4 1430CT 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