MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI December 30, 2015 (REPORT 52)

Farm level milk production is steady to higher in California. Cooler 
temperatures and low humidity are enhancing cow comfort. Orders from 
bottlers peaked early in the week, however declined through the end 
of the week as most of schools are closed until the second week of 
January. Milk intakes clearing into Class 4a (butter/powder) are 
steady to higher. According to California Department of Food and 
Agriculture, November 2015 Class 1 sales in California totaled 55.4 
million gallons, 2.2% lower compared to the same month a year ago. 
From January through November 2015, Class 1 sales totaled 605.8 
million gallons, 4.7% lower than the comparable period in 2014. 
Cooler and drier climate continues raising milk yields in Arizona. 
Orders from bottlers are improving as they strive to cover consumer 
needs over the upcoming holiday weekend. In addition, schools will 
reopen during next week. Demand for condensed skim from yogurt makers 
is active. Last weekend, New Mexico faced a blizzard with strong 
winds and heavy amounts of snow. A significant number of dairy cows 
were impacted by the storm. Because of this, some producers 
anticipate a reduction of milking cows in the short term. At this 
point, New Mexico farm level milk production is steady. Class I sales 
were higher for the week. Sales into Class II are improving. Sales 
into Class III are steady to higher. Pacific Northwest milk 
production is steady. More milk is flowing into manufactured products 
with bottling demand slower over the school year winter break. Utah 
and Idaho milk production is unchanged. Manufacturers say milk is 
readily available for processing. A large dairy herd dispersal sale 
is scheduled for next week in Utah. Western cream supplies are still 
increasing. Regional butter plants are running full schedules helping 
to clear up cream volumes. Cream spot sales have been light 
throughout the week. Multiples for all classes are ranging from 1.00 
to 1.24. Due to lower pricing, some churn operators are churning 
internal cream in lieu of selling in the spot market. At the CME 
Group, Grade AA butter price on Wednesday closed at $2.0650, 2.25 
cents up from a week ago.



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-
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