MD_DA240 DA MD DA240 FLUID MILK AND CREAM REVIEW - WEST Madison, WI February 25, 2016 (REPORT 8) Farm level milk output in California is flat to higher. Manufacturing milk volumes are heavy throughout the state. Bottled milk sales into food service and retail sectors are up this week. Class 2 sales are steady. Fair/good quality alfalfa hay is near to the first cut of the year. According to California Department of Food and Agriculture, January 2016 pool receipts of milk in the state total 3.28 billion pounds. This is 3.4% lower compared to the same month a year ago. The Value at Test price is $14.77, $0.63 lower than the previous month and $0.50 lower from a year ago. The percentage of receipts used in Class 1 products is 13.81%. The January quota price is $15.14 and the over quota price is $13.44. These prices are $0.41 lower than December 2015 and $0.71 below a year ago. Milk production in Arizona continues on the raise. A low humidity weather pattern is aiding to cows comfort. Manufacturing milk volumes are heavy. Class I sales are mostly steady. Condensed skim processing is active and demands from Class II processors are increasing. Harvesting of good/excellent quality alfalfa hay is active throughout the state. In New Mexico, a warmer climate pattern is aiding dairy herd comfort. As a result, farm level milk production is higher. Manufacturing milk volumes are sufficient. Sales into Class I and Class II are steady to lower as K- 12 school and retail pipelines are full at this point. According to the DMN National Retail Report-Dairy for the week of February 19 to 25, the national weighted average advertised price for one gallon of milk is $2.37, and $2.29 in the Southwest. Pacific Northwest milk production is building seasonally. Bottling demand is steady and manufacturers say milk supplies are adequate for processing needs. Regional precipitation is helping replenish the water reservoirs used in irrigation. Utah and Idaho milk production is at or slightly above seasonal averages. Although milk is generally adequate for processing needs, several manufacturers note an increase in demand for loads of milk and some tightness of supplies. Area contacts say there has been good precipitation this winter and the current snow pack is above average. Many are hopeful this will mean plenty of water for irrigation this year. Cream supplies are readily available in the West. Sales of cream loads in the spot market are more active this week. Heavy cream volumes continue to clear into butter churns. Demands from ice cream/frozen desserts and whipped cream makers are rising. This week, multiples for all classes are higher, ranging from 1.00 to 1.22. The NASS Milk Production report noted January 2016 milk production in the 23 selected states was 16.6 billion pounds, 0.3% above a year ago. Milk cows in the 23 selected states totaled 8.63 million head, 6,000 head more than a year ago. The following table shows Western states included in the report and the changes compared to a year ago: January 2016 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Arizona 420 + 1.0 California 3,435 - 2.7 Colorado 320 + 3.2 Idaho 1,162 + 0.7 New Mexico 589 -12.0 Oregon 217 + 3.3 Utah 183 - 3.2 Washington 560 + 0.9 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