MD_DA240 DA MD DA240 FLUID MILK AND CREAM REVIEW - WEST Madison, WI May 5, 2016 (REPORT 18) Farm milk production is steady to lower in California. Higher temperatures in the Central Valley are raising heat stress on cows. Bottled milk sales to retailers, food service, and educational institutions are higher this week. Demands from ice cream and frozen dessert manufacturers are steady to slightly higher as the summer season approaches. Cottonseed planting is active and near to finishing in a few weeks. The April 4a price (butter/powder) in California is $12.54, up 13 cents from the previous month, but down 82 cents from a year ago. This compares to the Federal Order Class IV price of $12.68 for April. The April 4b price (cheese) is $12.71, down 53 cents from the previous month and $1.51 below a year ago. This compares to the Federal Order Class III price for April at $13.63. In Arizona, milk output is still dropping slowly. Most manufacturing outlets are full handling heavy milk volumes. The comfort of dairy herds is decreasing as temperatures and humidity rise. The butterfat component level of milk continues falling, gradually. Condensed milk volumes are heavy and sales are steady. In New Mexico, milk yields continue increasing, but slowly. Class I sales are down as many supermarket shelves and school pipelines are filled. Class II sales are up as demand for ice cream is seasonally raising ahead of summer. Some Class III processors cut milk orders for the rest of the current week to accommodate maintenance projects. Condensed skim volumes moving into dryers are higher. This week, most regions of the state are starting the first cutting of fair/good quality alfalfa hay. According to the DMN National Retail Report- Dairy for the week of April 29-May 5, the national weighted average advertised price for one gallon of milk is $2.12, $2.17 in the Southwest and $1.89 in the Northwest. Pacific Northwest milk production has hit a little bit of a plateau within the spring flush. Manufacturers report ample supplies of milk for most processing needs. Milk receipts are in good balance with manufacturing and bottling needs. Industry contacts say only an occasional load of milk needs to be shifted between facilities. According to NASS, pasture and rangeland conditions are good or excellent in 58% of Oregon, and 76% of Washington. Industry contacts in Utah and Idaho say there is plenty of milk available for processing. Manufacturers are running relatively full, but it has not been a problem to find homes for the milk. Milk intakes and manufacturing needs are in relatively good balance. Recent warm days and cool nights have promoted cow comfort and strong production. According to NASS, pasture and rangeland conditions are good or excellent in 67% of Utah, and 70% of Idaho. In the West, competition for cream supplies between various manufacturers is growing. Ice cream/frozen dessert makers are pulling moderate cream volumes, while heavy cream loads continue clearing into butter churning. In addition, demand from cream cheese processors is inching up. Consequently, multiples for all classes are higher this week, ranging from 1.04 to 1.25. 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