MD_DA240 DA MD DA240 FLUID MILK AND CREAM REVIEW - WEST Madison, WI April 21, 2016 (REPORT 16) Farm level milk output is slightly higher in California. Current weather is conductive to cows' comfort. Sales into bottling are mixed this week. Orders from retailers and food service are up. However, requests from most educational institutions are down as pipelines are filled. Condensed skim volumes moving into Class 2 processing plants are steady to higher; some volumes are coming from the East. Milk production in Arizona is heading slowly down as production has peaked during the past few weeks. Daytime temperatures averaging 92 degrees are increasing heat stress in dairy cows. Bottled milk orders from grocery stores, restaurants and educational institutions are steady. Condensed skim volumes moving into NDM manufacturing are slightly lower. Some local processors continue clearing milk intakes from the Central region. Cotton seed planting is active throughout the state. Milk pooled on the Arizona Order 131 totaled 464.0 million pounds in March 2016. Class I utilization accounted for about 24.3% of producer milk. The uniform price was $13.84, $0.46 below last month and $1.49 below one year ago. In New Mexico, comfortable temperatures for dairy herds continue aiding milk yields. Class I sales are flat this week. Sales into Class II are up as demands from ice cream and frozen dessert processors are seasonally inching up. Some manufacturing plants are having maintenance/repair work done on their dryers. Consequently, condensed skim intakes moving into NDM production are lower. Fair to good quality alfalfa hay continues growing across the state. According to the DMN National Retail Report-Dairy for the week of April 15-21, the national weighted average advertised price for one gallon of milk is $2.41, $2.34 in the Southwest and $1.89 in the Northwest. In the Pacific Northwest, steady bottling and active dairy product manufacturing continue to balance fairly well with available milk. Processors say milk intakes are at or near seasonal highs. Milk production in Idaho and Utah is slowly climbing as warmer weather takes hold. Typical spring flush is a little later in the season. Although some industry contacts suggest there may be an early flush this year, it has yet to come into being. Processors say milk intakes are steady and sufficient for most of their needs. Water reservoir volumes are close to normal levels, indicating water should be readily available for early season irrigation needs. Milk pooled on Pacific Northwest Order 124 totaled 598.7 million pounds in March 2016. Class I utilization accounted for about 28.0% of producer milk. The uniform price was $13.67, $0.41 below last month and $1.33 below one year ago. Cream supplies are plentiful in the West region. Most cream is clearing into bulk butter production. In addition, demands from ice cream/frozen dessert manufacturers are on the raise as the summer season approaches. This week, multiples for all classes are mixed, ranging from 1.03 to 1.23. The NASS Milk Production report noted March 2016 milk production in the 23 selected states was 17.2 billion pounds, 1.8% above a year ago. Milk cows in the 23 selected states totaled 8.64 million head, 19,000 head more than a year ago. The following table shows Western states included in the report and the monthly milk production changes compared to a year ago: March 2016 Milk Production, (USDA-NASS) (Million Lb.)* % Change From 1 Year Ago Arizona 456 + 3.2 California 3,610 - 2.4 Colorado 327 + 2.8 Idaho 1,215 + 2.4 New Mexico 666 - 2.9 Oregon 225 + 0.9 Utah 188 - 1.6 Washington 572 + 0.5 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