MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST
Madison, WI July 21, 2016 (REPORT 29)
Farm milk production is steady to lower in California. The higher 
temperatures in the Central Valley are taking a toll on cows' 
comfort. Some dairy operators are drying off cows, which is common 
for this time of year. Manufacturing milk volumes are sufficient to 
keep balancing plants busy. Demand for Class 1 is seasonally lower. 
Interest for Class 2 is steady. Class 3 (ice cream) sales are inching 
up. According to some industry participants, prices for condensed 
skim are low. As a result, some processors are drying condensed skim 
instead selling in the spot market. Alfalfa hay harvesting continues 
across the state, but inventories for high quality alfalfa are tight. 
In Arizona, daytime temperatures are averaging 111 degrees. 
Consequently, milk yields are lower this week. Class I sales to 
grocery stores and restaurants are steady to lower. Sales for ice 
cream and others Class II dairy products are higher this week. 
Moderate to heavy condensed skim volumes continue clearing into NDM 
processing plants. Harvesting of good to excellent quality alfalfa 
hay is active in Arizona. Milk pooled on the Arizona Order 131 
totaled 434.8 million pounds in June 2016. Class I utilization 
accounted for about 23.5% of producer milk. The uniform price was 
$14.13, $0.35 above last month, but $1.82 below one year ago. In New 
Mexico, milk production is trending lower. The warm weather is 
raising stress in dairy herds. Bottled milk requests from retailers 
are up this week as some supermarkets are restocking shelves. In 
addition, demand for flavored fluid milk is active. Orders from food 
service are steady. Class II sales are up as demand for ice cream 
continues increasing. Manufacturing milk volumes moving into Class 
III are down as some processing plants have maintenance/repair work. 
Condensed skim interest from NDM producers is strong. According to 
the DMN National Retail Report-Dairy for the week of July 15-21, the 
national weighted average advertised price for one gallon of milk is 
$2.72, up 40 cents from last week, but 26 cents below a year ago. The 
weighted average regional prices in the Southwest and Northwest are 
$2.78 and $2.19, respectively. Pacific Northwest dairies are enjoying 
moderate temperatures and good cow comfort. Milk production has 
rebounded somewhat from the high heat several weeks ago. Milk intakes 
are in good balance with processing needs. A recently completed 
facility expansion has increased plant capacity and reduced the 
amount of milk needing transport within the region. Bottling demand 
is relatively stable. Processors are anticipating bottling draws to 
increase in several weeks as they prepare for the start of school 
terms. Milk is readily available in the mountain states of Colorado, 
Idaho and Utah. Although recent high temperatures may have taken the 
edge off milk production, plenty of milk is available for processing 
needs. Milk production typically peaks in late June or early July. 
Some milk continues to move within and from the region as a few 
cooperatives and manufacturers seek to push off excess milk into 
neighboring states. Milk pooled on Pacific Northwest Order 124 
totaled 746.6 million pounds in June 2016. Class I utilization 
accounted for about 20.5% of producer milk. The uniform price was 
$13.84, $0.34 above last month, but $1.54 below one year ago. Western 
cream supplies continue to be tight. Cream sales into ice cream 
production are strong. Butter manufacturing is steady in the region. 
A few butter processors are selling cream supplies instead of 
churning. This week, multiples for all classes are steady, ranging 
from 1.13 to 1.28.
 

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