MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI March 31, 2016 (REPORT 13)

Farm level milk output is steady to slightly higher in California. 
Daytime temperatures in the Central Valley, averaging 73 degrees, have 
been favorable to cows' comfort. Requests from bottlers are starting to 
pick up as most K-12 schools are reopening during next week. Sales into 
Class 2 and Class 3 are steady to higher as demands for ice cream and 
yogurt are gradually inching up. Fair to good quality alfalfa hay is 
still growing in the state. Some alfalfa fields has been cut throughout 
the week. According to California Department of Food and Agriculture, 
February 2016 pool receipts of milk in the state total 3.15 billion 
pounds. This is 0.3% lower compared to the same month a year ago. From 
January through February 2016, receipts are 1.9% lower from the 
comparable period in 2015. The Value at Test price is $14.24, $0.53 lower 
than the previous month and $0.51 lower from a year ago. The percentage 
of receipts used in Class 1 products is 13.68%. The February quota price 
is $14.79 and the over quota price is $13.09. These prices are $0.35 
lower than January 2016 and $0.74 below a year ago. In Arizona, milk 
output is steady to higher, near to the spring flush. The butterfat 
component of the milk is steadily declining. Bottling requests from 
retailers, food service and educational institutions are up this week. 
Condensed skim volumes moving into Class II are steady this week. 
Harvesting of good/excellent quality alfalfa hay continues in most parts 
of the state. A warm and dry weather climate is aiding to the milk yields 
in New Mexico. Class I sales are up this week. Bottlers are requesting 
more milk as most educational institutions are back in session next week. 
Class II sales are up as demands for ice cream and frozen desserts are 
increasing gradually. Manufacturing milk volumes moving into Class III 
are steady. Fair to good quality alfalfa continues growing throughout the 
state. According to the DMN National Retail Report-Dairy for the week of 
March 25-31, the national weighted average advertised price for one 
gallon of milk is $2.58, and $2.25 in the Southwest. In the Pacific 
Northwest, milk production continues to increase seasonally. Some 
warmer temperatures and days without rain have promoted the onset of 
spring and cow comfort. Milk distribution is returning to more normal 
patterns after the holiday weekend. Bottling demand however, is still 
in a bit of flux as various educational institutions start and end 
their spring breaks. Milk production is relatively steady in Utah and 
Idaho. Milk supplies remain in balance with processing needs. 
Processors say there are not many extra loads being offered. Farmers 
report silage, hay and normal water volumes should provide the 
foundation of decent milk production as spring begins. In the West, 
cream supplies are readily available. Heavy cream volumes are moving into 
butter processing. At this point, most churns are running at full 
capacity. Moderate cream loads are moving into Class III accounts. In 
addition, interest for cream from ice cream makers is seasonally 
increasing. This week, multiples for all classes are mixed, ranging from 
1.03 to 1.23.