MD_DA240 DA MD DA240 FLUID MILK AND CREAM REVIEW - WEST Madison, WI September 22, 2016 (REPORT 38) Farm milk intakes in California are higher this week. The cooler temperatures in the Central Valley are conductive to cows' comfort. In addition, some dairy operators are adding more cows to the milking parlor. Milk protein and butterfat components are improving. Class 1 orders from retailers are higher as some supermarkets are restocking shelves. Orders from the food service sector are steady this week. Sales into Class 2 are even. Demand for Class 3 (ice cream) is seasonally lower. Harvestings of corn, sorghum and alfalfa are active throughout California. Milk production is steady to slightly higher in Arizona. Lower temperatures and humidity are helping to support cows' comfort. Class I sales are ramping up this week for many educational institutions. In addition, orders from retailers are strong. Requests from restaurants are steady. Demands for some Class II dairy products, such as sour cream, are inching up as the football season started. Harvesting of good to excellent quality alfalfa is active throughout the state. In New Mexico, the rainy conditions are slightly reducing milk yields at the farm level. However, there are enough milk supplies for processing. Bottled milk orders from many retail channels and restaurants are higher this week. Requests from schools are even. Moderate to heavy manufacturing milk volumes continue clearing into Class III processing plants. Harvesting of alfalfa hay has been delayed due to the rains. New Mexico is between the fourth and fifth cutting of high quality alfalfa. According to the DMN National Retail Report-Dairy for the week of September 16-22, the national weighted average advertised price for one gallon of milk is $2.71, down 11 cents from last week, but 2 cents higher from a year ago. The weighted average regional price in the Northwest is $1.99. Pacific Northwest milk production is steady. Seasonal temperatures are aiding cow comfort. Bottling demand continues to pull strong volumes of milk, while manufacturers start to gear up for the fall and winter holidays. Processors are not having any trouble finding milk for processing needs. In the mountain states of Colorado, Utah and Idaho milk intakes are mostly following seasonal trends. After reaching the peak production in the summer months, milk production has backed off slightly. Manufacturers report milk is still plentiful for most processing needs. Processors have been buying a few loads to fill up production runs, often at or just below the Class III price. In the west, interest for condensed skim from ice cream makers is seasonally waning. However, demands from NDM and SMP manufacturers are strengthening. Condensed skim supplies are readily available in the market. Cream volumes are more available in the West region as the milk butterfat component continues improving. In addition, the milk standardization process is adding to cream supplies. Cream demands from ice cream/frozen dessert makers are weakening, but are strong from butter churners and cream cheese makers. This week, multiples for all classes are slightly lower, ranging from 1.15 to 1.28. The NASS Milk Production report noted August 2016 milk production in the 23 selected states was 16.7 billion pounds, 1.9% above a year ago. Milk cows in the 23 selected states totaled 8.68 million head, 43,000 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: August 2016 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Arizona 368 + 0.8 California 3,287 - 1.7 Colorado 342 + 6.9 Idaho 1,285 + 4.9 New Mexico 659 + 1.5 Oregon 220 + 2.8 Utah 184 - 3.7 Washington 569 + 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