MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI March 24, 2016 (REPORT 12)

In California, milk production continues increasing from week to 
week. Bottled milk orders are mixed as most educational institutions 
are closed during this week. However bottled milk requests from 
retailers and food service are active, mostly driven by the upcoming 
holiday this weekend. Demand for condensed skim from ice cream 
manufacturers is seasonally increasing. Farm level milk production is 
still running high in Arizona. Some producer are expecting to reach 
the peak flush during the first week of April. Bottling orders are 
strong as most K-12 schools are back in session. Class II sales have 
been flat throughout the week. Condensed skim sales are slightly 
lower. In New Mexico, milk output is higher. The warmest temperatures 
are boosting cows' comfort. The butterfat component of the milk is 
decreasing gradually. Bottled milk sales are up, mostly driven by the 
spring holidays. Sales into Class II are even. Manufacturing milk 
volumes moving into Class III and Class IV (NDM) are steady to 
higher. According to the DMN National Retail Report-Dairy for the 
week of March 18-24, the national weighted average advertised price 
for one gallon of milk is $2.18 and $2.21 in the Southwest. Pacific 
Northwest milk production is steady to higher. The advent of spring 
flush is at hand, however periodic weather systems are pushing 
production back a bit from time to time. A few confinement dairies 
are turning cows out on pasture. Bottling demand is lower as 
educational institutions take their spring breaks. Some additional 
milk is being diverted into manufactured products due to the annual 
spring hiatus. Milk production is steady to slightly higher in Idaho 
and Utah. Processors report milk supplies are in balance with 
manufacturing needs. Offers for additional loads of milk are somewhat 
limited. In some cases, yogurt and other manufactured products with 
strong seasonal demand are currently taking up extra milk. Cream 
supplies in the West are plentiful. Most of the cream is moving into 
butter churning. However, interest from ice cream/frozen dessert 
manufacturers is inching up. In addition, some Class III processors 
in the region are pulling moderate cream volumes. Compared to the 
previous week, sales of spot loads are more active
This week, multiples for all classes are higher, ranging from 1.05 to 
1.23. The NASS Milk Production report noted February 2016 milk 
production in the 23 selected states was 15.8 billion pounds, 4.6% 
above a year ago. Milk cows in the 23 selected states totaled 8.63 
million head, 8,000 head more than a year ago. The following table 
shows Western states included in the report and the changes compared 
to a year ago:  

February 2016 Milk Production, (USDA-NASS)
 
                     (Million Lb.)*        % Change From
                                            1 Year Ago
  
Arizona                   404                + 4.1
California              3,300                + 0.5
Colorado                  303                + 5.9
Idaho                   1,111                + 5.6
New Mexico                591                - 2.6
Oregon                    207                + 5.6
Utah                      173                + 1.8
Washington                525                + 3.6
*Unadjusted