MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI February 18, 2016 (REPORT 7)

In California, farm milk production is increasing, but milk 
processors indicate the rate of increase is slower than what was 
expected. This may be an aftereffect of less than optimal feeding 
patterns throughout the winter as well as the result of stress on 
herds from recent rainstorms. Some processors indicate they've 
received spot milk volumes from plants taking down time for repair 
and maintenance projects. Class 1 sales are steady to higher. 
Processors in Arizona indicate milk intakes are increasing both on 
week to week and on year to year bases. Several dairy operators 
within the state have expanded incrementally throughout the last year 
through purchases of dairy animals and through internal herd growth. 
Milk pooled on the Arizona Order 131 totaled 432.4 million pounds in 
January 2016. Class I utilization was 107.7 million pounds and 
accounted for 24.9 percent of producer milk.  The uniform price was 
$14.50 per cwt.  The uniform price was $1.74 below last month, and 
$1.54 below the same month last year. This week, Class I sales were 
variable through the week as handlers modified orders, but net weekly 
sales were steady. Milk production in New Mexico is steady overall. 
Milk supplies clearing into the state from various sellers are 
unchanged. Class I demand within the state shifted higher, but sales 
to bottlers in the Southeast area stepped lower. Milk sales into hard 
ice cream, soft serve, and ice cream mix production are steady to 
lower, while sales into Class III plants increased as some 
maintenance projects were completed and operating schedules returned 
normal. According to the DMN National Retail Report-Dairy for the 
week of February 12-18, the national weighted average advertised 
price for one gallon of milk is $2.33, $2.17 in the Southwest and 
$2.49 in the Northwest. Some Pacific Northwest milk processors are 
noting a slight uptick in milk intakes. The recent warm temperatures 
have improved cow comfort. In addition, rains over the last month 
have eased drought conditions in some parts of the region. Pastures 
are starting to grow and green up. The Western snowpack is generally 
plentiful and the spring streamflow forecasts are currently at or 
above average for the upcoming season. Farmers are hopeful this trend 
continues and there is sufficient water for irrigation needs this 
growing season. Bottling demand is seasonally steady for milk in the 
Pacific Northwest. Utah and Idaho milk production is mostly steady. 
Temporary fluctuations in temperature, rain and other factors in cow 
comfort will edge production up or down, but dairy analysts report 
there has not been much decline through the course of the winter. 
Although the winter snow pack is generally good across the region, 
there is some concern of lower spring and summer runoff along the 
eastern slopes of the northern Rockies. Throughout the West region, 
spot cream volumes are available. Although interest from frozen 
dessert/ice cream manufacturers is increasing seasonally, some churn 
operators report that they are interested in building butter stocks 
ahead of Q3, when cream available from farm milk intakes tend to 
decrease. Multiples for all classes are steady, ranging from .98 to 
1.20.



1100CT Janet.Linder@ams.usda.gov 608-557-7003
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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