MD_DA240 DA MD DA240 FLUID MILK AND CREAM REVIEW - WEST Notes for DA240 h/w/page4/Westmilk Madison, WI May 26, 2016 (REPORT 21) Farm level milk production is flat, as the weather conditions remain unchanged from last week. Bottled milk orders from educational institutions are even. However, requests from retailers and food service are steady to lower as the Memorial Day holiday weekend approaches. In addition, some customers are replacing bottled milk consumption with popular summer drinks. Interest from some processors in drying condensed skim loads is increasing. Alfalfa hay harvesting is active throughout the state. On May 20, the California Department of Food and Agriculture announced a permanent change to their dry whey scale of the Class 4b pricing formula. This new scale will be effective June 1, 2016. According to California Department of Food and Agriculture, April 2016 pool receipts of milk in the state total 3.33 billion pounds. This is 3.8% lower compared to the same month a year ago. From January through April 2016, receipts are 2.6% lower from the comparable period in 2015. The Value at Test price is $13.53, $0.35 lower than the previous month and $1.13 lower from a year ago. The percentage of receipts used in Class 1 products is 12.78%. The April quota price is $14.31 and the over quota price is $12.61. These prices are $0.29 lower than March 2016 and $1.24 below a year ago. In Arizona, cows' comfort is stable because the weather is cooler this week. Consequently, milk yields have plateaued after a six-week downward trend. Bottled milk orders from educational institutions are considerably lower as many K-12 schools are finishing this week. However, some Class I processors are pulling a little bit heavier volumes to fill new product lines. New Mexico milk output continues steady on the top of the seasonal peak. Butterfat components are steadily decreasing. Milk volumes are moderate to heavy, keeping many processing plant operators busy. Class I sales are lower as most educational institutions are closing this week. Class II sales are steady. Manufacturing milk volumes moving into Class IV are steady to slightly lower as some processing plants are performing repair/maintenance works. According to the DMN National Retail Report-Dairy for the week of May 20-26, the national weighted average advertised price for one gallon of milk is $2.34, up 7 cents from last week, but 39 cents below a year ago. The weighted average regional prices in the Southwest and Northwest are $2.09, and $1.95, respectively. Pacific Northwest milk production has hit its high mark according to some processors. Milk is readily available for almost all processing needs. Bottling demand is following normal patterns for this time of year and is slowing as many schools close for summer breaks. According to the NASS Weekly Weather and Crop Bulletin, 76% of Washington pasture and rangeland is in good or excellent condition, while 60% is good or excellent in Oregon. Utah and Idaho dairy farms are supplying a steady supply of milk for processing. Industry contacts report there is little milk moving in to or out of the region. Many area processors are running fairly full production schedules and expect a small increase of milk available for processing over the holiday weekend and as schools close for the year. According to NASS, pasture and rangeland conditions are good or excellent in 75% of Idaho and 78% of Utah. In the West, demands for cream from ice cream, frozen dessert and cream cheese producers are steady to slightly higher. According to some industry participants, cream supplies are readily available, but are slightly tight in a few areas of the region. Cream use for butter churning is very active. This week, multiples for all classes are mixed, ranging from 1.03 to 1.24. The NASS Milk Production report noted April 2016 milk production in the 23 selected states was 16.8 billion pounds, 1.2% above a year ago. Milk cows in the 23 selected states totaled 8.65 million head, 21,000 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: April 2016 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Arizona 434 + 1.2 California 3,484 - 3.3 Colorado 321 + 1.9 Idaho 1,197 + 2.0 New Mexico 656 - 3.5 Oregon 220 + 1.4 Utah 185 - 1.1 Washington 562 + 0.4 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