MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Farm level milk production is steady to higher in California. Cooler 
temperatures, around 60 degrees, are raising comfort of dairy cows. 
Orders from bottlers serving K-12 schools are steady to lower as most 
schools will be closed on Monday for Martin Luther King Day. However, 
the reopening of higher education institutions is pulling heavy milk 
supplies into other bottling plants. As a result, manufacturing milk 
volumes for other classes are lower, but sufficient to keep balancing 
plants busy. The February 2015 Class 1 prices in California are 
$14.98 in the north and $15.25 in the south. The statewide average 
Class 1 price based on production is $14.99. This price is $2.91 
cents lower than January 2016 and $2.11 lower than February 2015. In 
Arizona, the favorable weather pattern to dairy herds is enhancing 
milk yields. Bottled milk demand is seasonally strong. Condensed skim 
volumes into Class II are increasing, especially into yogurt and ice 
cream manufacturing. In New Mexico, dairy operations are still 
recovering from the damages of winter storm Goliath. Compared to the 
previous week, milk output is steady to slightly higher. Some 
producers anticipate a slow increase in production in the next couple 
of weeks. Class I sales are higher, but lower for Class II. 
Manufacturing milk volumes moving into Class III are steady. 
According to the DMN National Retail Report-Dairy for the week of 
January 8-14, the national weighted average advertised price for one 
gallon of milk is $2.54, $3.12 in the Southwest and $2.49 in the 
Northwest. Pacific Northwest milk production is steady. Temperatures 
have been mostly comfortable, but occasional cold or wet conditions 
challenge cow comfort and suppress milk output. Industry contacts 
report good volumes of forage are available. Prices for premium 
alfalfa hay have come down from the previous month. Utah and Idaho 
milk production are consistent with normal seasonal patterns. 
Processors say there is plenty of milk for manufactured products. 
Western cream supplies continue to be clearing into butter 
manufacturing. Interest for cream is light. However, cream demand 
from ice cream makers is slightly improving. Some dairy operations 
are still using internal cream for churning rather than selling at 
lower prices. Multiples for all classes are mixed, ranging from 1.00 
to 1.20. At the CME Group, Grade AA butter price on Wednesday closed 
at $2.1000, up 6.25 cents 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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