MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI March 10, 2016 (REPORT 10)

At this point, milk production is flat to higher in California. The 
butterfat component level of the milk is starting to decrease slowly. 
Bottled milk sales are unchanged from last week. Demands for 
condensed skim from ice cream and soft serve mix manufacturers are 
picking up. Fair to good quality alfalfa hay continues to grow in the 
north area of the Central Valley. According to the last snow survey, 
the snowpack in Sierra Nevada is below average at 83% of normal for 
this date. Arizona milk output is increasing along seasonal trends. 
Manufacturing milk volumes are heavy. Orders from bottlers are steady 
to lower, as most K-12 schools will start the spring break during 
next week. Demand for condensed skim is steady this week. Milk output 
in New Mexico is ramping up as warmer temperatures are aiding dairy 
herd comfort. Bottled milk sales to retailers and food service are 
lower. Class II sales are slightly higher as demands for ice 
cream/frozen desserts are seasonally increasing. Milk volumes moving 
to dry products manufacturing are slightly lower as some dryers are 
having repair/maintenance works. Manufacturing milk volumes into 
Class III are steady to higher this week. According to the DMN 
National Retail Report-Dairy for the week of March 4 to 10, the 
national weighted average advertised price for one gallon of milk is 
$2.38, $2.13 in the Southwest and $2.50 in the Northwest. 
Manufacturers in the Pacific Northwest report milk intakes are 
climbing, and the spring flush is underway. Some processors have less 
available capacity for toll processing. They are turning away extra 
loads of milk, and are unable to take in milk from other handlers. 
Bottling demand is seasonal and steady. Warm temperatures and ample 
rain are getting pastures off to a good start. The farmers within the 
region expect the mountain snowpack to provide adequate water for 
early season irrigation needs. Milk production in Utah and Idaho is 
moving higher as temperatures warm and the days get longer. Most 
manufacturers are content with the milk that is available to them. As 
the need arises, some milk is available to round out production 
schedules. Some rain across the region and snow in the mountains have 
helped refill reservoirs. However, pockets within the region are 
still below normal snow water equivalents. Additional snow or rain is 
needed to assure enough water for all irrigation needs. Heavy cream 
volumes continue to be clear into butter manufacturing. In addition, 
demands from ice cream and cream cheese makers are trending higher. 
Sales of cream loads are active throughout the region. The market 
tone is light to moderate. This week, multiples for all classes are 
steady to lower, ranging from 1.00 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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