MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI February 11, 2016 (REPORT 6)

Milk production at the farm level is steadily climbing in California. 
Manufacturing milk volumes are heavy. Demands for Class 1 and Class 2 
are seasonally active. The March 2016 Class 1 prices in California 
are $15.38 in the north and $15.65 in the south. The statewide 
average Class 1 price based on production is $15.40. This price is 41 
cents higher than February 2016, but $1.28 lower than March 2015. 
Farm level milk output is higher in Arizona as the weather remains 
advantageous for the dairy herds. Bottled milk sales into retail and 
food service accounts are steady to higher. Sales into Class II are 
slightly lower this week. Condensed skim volumes moving into Class IV 
(butter/powder) are increasing. According to NASS, in January 2016, 
alfalfa conditions were mostly good to excellent in Arizona and 
harvesting occurred on at least 70% of the acres across the state. 
Compared to the previous week, milk production is steady in New 
Mexico. Manufacturing milk volumes moving into processing plants are 
improving gradually. Class I and Class II sales are unchanged. 
According to the DMN National Retail Report-Dairy for the week of 
February 5 to 11, the national weighted average advertised price for 
one gallon of milk is $2.31, $1.99 in the Southwest and $2.50 in the 
Northwest. Pacific Northwest milk production is inching higher. Cow 
comfort has improved as temperatures have gone up in the last few 
days. Bottlers are providing a steady demand for milk. Utah and Idaho 
milk production is at or slightly below normal seasonal levels. 
Although milk supplies are mostly well balanced with milk needs, a 
few contacts say there are some occurrences of tightness of milk 
supplies. Dairy officials report some farmers are hesitant to expand 
their herd at this time because of higher replacement heifer costs 
and anticipated lower milk prices through 2016. Dairy feed supplies 
are plentiful for late winter and early spring needs. Most farmers 
expect a good carryover of feed supplies and feed costs to be 
favorable through the year. Cream supplies are higher throughout the 
West. Most of the cream is moving into butter manufacturing. Many 
butter processors indicate their churns are running at full capacity. 
Some western cream loads are clearing into the Central region. Demand 
from ice cream/frozen dessert manufacturers is gradually inching up. 
This week, multiples for all classes are lower, ranging from .98 to 
1.20. 


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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