MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI March 3, 2016 (REPORT 9)

This week, a warm climate pattern is stimulating the milk yields in 
California. Bottled milk orders from educational institutions and 
food service are steady at seasonal levels. Some plants are ramping 
up production of holiday related milk based drinks. Condensed skim 
demand from ice cream manufacturers is inching up. The February 4a 
price (butter/powder) in California is $13.28, up 2 cents from the 
previous month, but down 18 cents from a year ago. This compares to 
the Federal Order Class IV price of $13.49 for February. The February 
4b price (cheese) is $13.05, 3 cents below the previous month and 73 
cents lower from a year ago. This compares to the Federal Order Class 
III price for February at $13.80. In Arizona, milk production 
continues to increase from week to week as the weather remains 
advantageous for the milking cows. Many processing plants in the 
state are busy trying to clear regular intakes. Fluid demand is 
steady at seasonal levels. Bottlers are already preparing for changes 
to orders related to the upcoming spring break in most educational 
institutions. Sales into Class II are unchanged this week. Condensed 
skim volumes moving into Class IV (butter/powder) are increasing. 
Farm level milk output is increasing in New Mexico. Bottled milk 
sales to retailers and food service are up this week. Class II sales 
are slightly down. Manufacturing volumes moving into Class III are 
steady to higher. Alfalfa fields are starting to green in most parts 
of New Mexico. According to the DMN National Retail Report-Dairy for 
the week of February 26 to March 3, the national weighted average 
advertised price for one gallon of milk is $2.52, $2.69 in the 
Southwest and $2.49 in the Northwest. Favorable weather in the 
Pacific Northwest is inching on-farm milk production upward. The 
warming temperatures are promoting pasture grasses to grow earlier 
than normal. In many areas of the region, ample precipitation and a 
good snow pack have filled water reservoirs and given farmers 
confidence of good water availability to start the growing season. 
Milk bottling demand is steady and consistent with normal activity. 
Utah and Idaho milk production trends are steady and generally 
adequate for most processing needs. Although the region has received 
good precipitation amounts, easing some of the drought concern, 
warmer temperatures are melting the region's snowpack a little sooner 
than expected. At this point farmers anticipate enough water for 
irrigation. Dairy farmers have good carryover of hay and other 
feedstocks as they enter the growing season. Cream supplies are 
higher throughout the West. Most of the cream volumes continue to 
move into butter manufacturing. According to some butter processors, 
demand for cream is slightly lower as the spring holiday orders have 
been filled. Western manufacturers are still actively processing 
butter. Demand from ice cream/frozen dessert makers is gradually 
inching up. This week, multiples for all classes are steady, ranging 
from 1.00 to 1.22.


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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