MD_DA240 DA MD DA240 FLUID MILK AND CREAM REVIEW - WEST Madison, WI January 28, 2016 (REPORT 4) Milk output is steady to higher in California. Some rain showers were present during the last weekend, but milk production was marginally affected. At this point of the season, the weather conditions are favorable to dairy herds. Manufacturing milk volumes are sufficient, but lower than a year ago. Bottled milk demands from grocery stores and food service are steady to higher. Interest for Class 2 is even. According to California Department of Food and Agriculture, December 2015 pool receipts of milk in the state total 3.24 billion pounds. This is 3.6% lower compared to the same month a year ago. From January through December 2015, receipts are 4.3% lower from the comparable period in 2014. The Value at Test price is $15.40, $1.19 lower than the previous month and $2.42 lower from a year ago. The percentage of receipts used in Class 1 products is 14.36%. The December quota price is $15.55 and the over quota price is $13.85. These prices are $1.21 lower than November 2015 and $2.67 below a year ago. Comfortable temperatures for milking cows are helping to rise the milk yields in Arizona. In addition, fair/good feed is readily available. Manufacturing milk volumes moving into processing plants are stepping higher. Sales into bottling plants are flat as the pipeline for K-12 schools is full. Condensed skim volumes moving into NDM dryers are steady to higher. Throughout the week, the climate has been advantageous for dairy herds in New Mexico. As a result, farm level milk output is higher than last week, but below December 2015. Manufacturing milk volumes continue to be tight in some balancing plants. Sales into Class I are steady, but higher into Class II. Sales into Class III are flat. According to the DMN National Retail Report-Dairy for the week of January 22-28, the national weighted average advertised price for one gallon of milk is $2.75 and $2.42 in the Southwest. Pacific Northwest milk production is steady. Manufacturers say they have yet to see any significant increase in milk intakes. Additional loads of milk are not as readily available as they were over the winter holidays. A few loads of milk have been diverted to backfill into other parts of the western region. Bottling demand is following normal seasonal trends. Utah and Idaho milk production is steady to slightly higher. Relatively mild winter temperatures are aiding in cow comfort. There is plenty of milk to meet processing needs. Cream supplies are readily available in the West. Cream volumes continue to be clear into butter churns as regional demand for butter is inching up. In addition, some cream supplies have been used to make ice cream, cream cheese and sour cream. Multiples for all classes are steady, ranging from .98 to 1.16. At the CME Group, Grade AA butter price on Wednesday closed at $2.2000, up 6.75 cents from a week ago. According to NASS, December milk production for the 23 surveyed states totals 16.4 billion pounds, 0.7% higher than a year ago. Monthly milk production per cow is 6 pounds above December 2014. Milk cows totaled 8.640 million head, 29,000 head more than a year ago. The following table shows Western states included in the report and the changes compared to a year ago: December 2015 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Arizona 390 - 2.3 California 3,366 - 3.0 Colorado 315 + 2.6 Idaho 1,168 + 1.1 New Mexico 624 - 6.2 Oregon 213 + 2.9 Utah 183 - 1.6 Washington 548 + 0.4 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- home