MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI March 17, 2016 (REPORT 11)

Farm milk production continues rising in California. Milk components 
are stepping lower due to an increase in temperatures. Bottled milk 
sales are steady this week. Sales into ice cream and frozen dessert 
manufacturing are steady to higher as processors are ramping up 
production for the upcoming spring holidays and summer season. The 
April 2016 Class 1 prices in California are $15.26 in the north and 
$15.53 in the south. The statewide average Class 1 price based on 
production is $15.27. This price is 13 cents lower than March 2016 
and $1.68 lower than April 2015. In Arizona, farm level milk intakes 
are higher. Most educational institutions are closed this week due to 
the spring break. As a result, orders from bottlers are lower this 
week. Some ice cream manufacturers have been pulling moderate 
condensed skim volumes throughout the week. Harvesting of 
good/excellent quality alfalfa hay continues around the state. Milk 
pooled on the Arizona Order 131 totaled 433.1 million pounds in 
February 2016. Class I utilization accounted for about 24.0% of 
producer milk. The uniform price was $14.30, $0.20 below last month 
and $1.26 below one year ago. A comfortable climate to dairy cows is 
aiding milk yields in New Mexico. Sales into Class I are lower as the 
spring break for most K-12 school calendars will start in the next 
two weeks. Sales into Class II are higher as the interest for ice 
cream is growing. Dry product processing is more active this week as 
some dryers completed repair/maintenance work. Manufacturing milk 
volumes moving into Class III are steady to lower. According to the 
DMN National Retail Report-Dairy for the week of March 11 to 17, the 
national weighted average advertised price for one gallon of milk is 
$2.54 and $2.10 in the Southwest. Pacific Northwest milk production 
is seasonally increasing. Some processors report the region is 
heading into spring flush and the processors are working hard to find 
homes for loads of additional milk. Regional bottling plants are 
pulling good volumes of milk, but demand fluctuates somewhat 
depending on spring break schedules of area educational institutions. 
Milk pooled on Pacific Northwest Order 124 totaled 716.5 million 
pounds in February 2016. Class I utilization accounted for about 
22.3% of producer milk. The uniform price was $14.08, $0.07 below 
last month and $1.34 below one year ago. Milk production trends in 
Utah and Idaho are steady to higher. Manufacturers say milk is 
adequate for almost all processing needs. Industry contacts report 
forages are still ample and there will be a good carryover of 
feedstocks into the next few months. Competition for cream supplies 
is starting to increase in the West. Most cream volumes are clearing 
into butter churning. In addition, ice cream/ frozen dessert makers 
are pulling heavy cream volumes. Sales in the spot market are active. 
This week, multiples for all classes are slightly higher, ranging 
from 1.02 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-
home