MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST
Madison, WI July 7, 2016 (REPORT 27)
Farm milk production continues decreasing in California. Temperatures 
are averaging 106 degrees in the Central Valley. According to some 
processors, the milk butterfat component is at the lowest level of 
the year. Bottled milk sales are down this week, following seasonal 
patterns. However, demand for flavored milk is active in some retail 
and food service channels. Interest for Class 3 (ice cream) is 
seasonally strong. Condensed milk sales into nonfat dry milk 
manufacturing are higher. Alfalfa hay harvesting is active throughout 
the state. The June 4a price (butter/powder) in California is $13.51, 
up 94 cents from the previous month, but down 14 cents from a year 
ago. This compares to the Federal Order Class IV price of $13.77 for 
June. The June 4b price (cheese) is $13.03, up $1.66 from the 
previous month, but $2.52 below a year ago. This compares to the 
Federal Order Class III price for June at $13.22. In Arizona, the 
excessively high daytime temperatures are taking a toll on cows' 
comfort. Consequently, milk yields are trending lower. Milk 
components continue decreasing. Class I requests from retailers and 
food service are steady to lower as demands for popular summer drinks 
are raising. Sales into Class II are seasonally strong. Condensed 
skim demands from ice cream/frozen dessert and NDM processors are 
active. Good to excellent alfalfa hay harvesting continues across the 
state. In New Mexico, farm milk output is steady to lower due to the 
warmer weather. Bottled milk orders from grocery stores and 
restaurants are lower. Some consumers are replacing milk consumption 
by soft drinks and other popular summer beverages. Class II sales are 
higher as demand for ice cream continues ramping up. Moderate 
condensed skim volumes continue clearing into Class III and Class IV. 
The state is into the third cutting of alfalfa hay. Sorghum planting 
is almost finished. According to the DMN National Retail Report-Dairy 
for the week of July 1-7, the national weighted average advertised 
price for one gallon of milk is $2.28, up 8 cents from last week, and 
19 cents above a year ago. The weighted average regional prices in 
the Southwest and Northwest are $2.64 and $1.95, respectively. 
Pacific Northwest milk production is following seasonal trends. Some 
heat and dryness in parts of the region have impacted production 
somewhat, but manufacturers report few issues getting milk for 
processing needs. Abnormally dry conditions extend across both 
Washington and Oregon, with moderate drought persisting in Eastern 
Oregon. Milk intakes at processors are returning to normal after the 
Fourth of July weekend. Milk distributors had to juggle a few loads 
around with minimal disruption. Available milk loads were absorbed by 
manufactured dairy product facilities. Pasture and rangeland 
conditions are rated good or excellent in 42% of Oregon and 73% of 
Washington. Milk production in the mountain states of Colorado, Idaho 
and Utah are steady to seasonally lower. Manufacturers are generally 
content with the milk supplies they have. Some processors are not too 
eager to take on a few of the excess spot loads available in the 
region. A few other plants are soaking up available milk to keep 
manufacturing facilities running at full production. Dairy cattle 
feedstuffs are reported in good supply. Pasture and rangeland 
conditions are rated good or excellent in 74% of Colorado, 67% of 
Idaho and 62% of Utah. Western cream supplies are tight in many 
processing plants. Ice cream/frozen dessert manufacturers are pulling 
moderate to heavy cream volumes. In addition, regional farm milk 
output is lower and the milk butterfat component is low. Cream 
continues moving into butter churning but at a lower rate. A few 
processors are selling spot cream loads in lieu of churning. This 
week, multiples for all classes are mixed, ranging from 1.09 to 1.30. 
DAIRY PRODUCTS:  According to NASS, hard ice cream production in the 
West region for May 2016 is 19.1 million gallons, 5.3% higher than a 
year ago, but 0.4% lower than the previous month. 

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