MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Compared to the previous week, milk production is steady to lower in 
California. Higher temperatures and rainy weather conditions are 
adding stress on cows. Some industry participants suggest that the 
state hit the peak of the flush in late March. The protein and 
butterfat components of the milk continue declining, gradually. Class 
1 sales are mixed this week as many K-12 school pipelines are filled. 
However, bottled milk requests from groceries stores and food service 
are up. The May 2016 Class 1 prices in California are $14.84 in the 
north and $15.11 in the south. The statewide average Class 1 price 
based on production is $14.85. This price is 42 cents lower than 
April 2016 and $2.23 lower than May 2015. In Arizona, farm level milk 
output is flat to lower. Daytime temperatures around 95 degrees are 
starting to reduce dairy herds comfort. However, milk volumes for 
processing are moderate to heavy. Class I demand from retailers and 
food service is even this week. Condensed skim volumes moving into 
Class II processing facilities are strong. Milk production is steady 
to higher in New Mexico. The climate remains comfortable for dairy 
cows with temperatures averaging 77 degrees. Manufacturing milk 
volumes in the state are adequate. Bottled milk requests from 
groceries stores and restaurants are higher. Milk volumes moving into 
cheese manufacturing are increasing. Condensed skim volumes moving 
into Class II accounts are up this week. Some processing plants have 
repair/maintenance works with their dryers. As a result, condensed 
skim volumes moving into NDM manufacturing are lower. In addition, 
some Class III processors are cutting some milk orders due to minor 
operational issues. According to the DMN National Retail Report-Dairy 
for the week of April 8-14, the national weighted average advertised 
price for one gallon of milk is $2.42, $2.57 in the Southwest and 
$1.79 in the Northwest. Pacific Northwest processors say milk intakes 
are at or near seasonal highs. Good demand from bottlers continues to 
take up excess milk. Milk is readily available for processing and in 
relatively good balance. Processors in Utah and Idaho report milk 
intakes are steady. Milk production is following seasonal patterns, 
and has yet to come into spring flush. Manufacturers say intakes are 
adequate for most processing needs. In the West, cream supplies are 
readily available for processing. After the end of the spring break 
in schools, bottling processing is making cream more available in the 
region. Demand from ice cream manufacturers is steadily increasing as 
summer season approaches. This week, multiples for all classes are 
slightly lower, ranging from 1.00 to 1.23.


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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