MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI April 7, 2016 (REPORT 14)

In California, farm milk production is flat to slightly higher. 
Bottled milk sales are mixed. Orders from bottlers are higher as most 
educational institutions are back in session during this week. 
However, requests from grocery stores and food service have been 
slightly lower throughout the week. Sales into Class 3 are gradually 
rising as summer approaches. The lack of water for irrigation systems 
continues to be a concern for many farmers. According to the last 
snow survey, the snowpack in Sierra Nevada is below average at 77% of 
normal for this date. At this point, the quality of the alfalfa hay 
growing in the state is mostly fair to good. The March 4a price 
(butter/powder) in California is $12.41, down 87 cents from the 
previous month and $1.01 less from a year ago. This compares to the 
Federal Order Class IV price of $12.74 for March. The March 4b price 
(cheese) is $13.24, up 19 cents from the previous month, but down 73 
cents from a year ago. This compares to the Federal Order Class III 
price for March at $13.74. Arizona milk output is up, at the peak of 
spring flush. Daytime temperatures are starting to hit around 90 
degrees. As a result, some producers are anticipating a little 
decline in the milk yields for the next few weeks. Some local 
processing plants are clearing milk volumes from nearby states. 
Bottled milk orders from retailers, food service and educational 
institutions are higher this week. Condensed skim sales for ice cream 
manufacturing are picking up slowly. In New Mexico, milk production 
continues rising. Favorable weather conditions are boosting cows' 
comfort. Some processing plants from nearby states are still clearing 
milk volumes from state's producers. Class I demand is steady to 
slightly lower as school pipelines are starting to be fulfilled. 
Condensed skim volumes moving into Class II are steady to higher. 
According to the DMN National Retail Report-Dairy for the week of 
April 1-7, the national weighted average advertised price for one 
gallon of milk is $2.76, $3.05 in the Southwest and $2.29 in the 
Northwest. Pacific Northwest milk production is following seasonal 
trends. Some manufacturers suggest milk intakes are not showing a lot 
of year to year growth right now. Other processors say milk 
production seems to have hit a little plateau and is currently in 
good balance with manufacturing needs. Favorable weather is helping 
dry out cow paddocks and aiding in cow comfort. Bottling demand is 
returning to more typical patterns, as many educational institutions 
resuming classes after spring break. Milk intakes are balanced with 
processing needs in Utah and Idaho. In parts of the region, 
precipitation has made farms a little sloppy. In some cases, the mud 
and weather conditions have bumped somatic cell counts up a little or 
created other small production issues. Industry contacts expect many 
of these issues to subside as warmer temperatures come into the 
region. At this point, most of the western cream supplies are moving 
into butter manufacturing. The interest for cream from ice cream, 
frozen dessert, and aerated cream makers is steadily growing. In 
addition, some Class III processors are pulling moderate cream 
volumes. This week, multiples for all classes are steady to slightly 
higher, ranging from 1.03 to 1.24.


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