MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST
Madison, WI September 29, 2016 (REPORT 39)
In California, farm milk output is trending up. Lower seasonal 
temperatures are supporting cow comfort. Protein and fat components 
in the milk are steadily improving. Bottled milk orders from the 
retail and food service sectors are up this week. Orders from most 
educational institutions are steady. Demands for some Class 2 dairy 
products, like sour cream, are seasonally improving. Interest for 
Class 3 (ice cream) continues weakening. Manufacturing milk volumes 
moving to Class 4b (cheese) are higher as cheese operations are 
running near full capacity. According to California Department of 
Food and Agriculture (CDFA), August 2016 pool receipts of milk in the 
state total 3.13 billion pounds. This is 2.4% lower compared to the 
same month a year ago. From January through August 2016, receipts are 
2.4% lower from the comparable period in 2015. The Value at Test 
price is $15.99, $1.17 higher than the previous month and $0.59 above 
from a year ago. The percentage of receipts used in Class 1 products 
is 14.58%. The August quota price is $16.74 and the over quota price 
is $15.04. These prices are $1.08 higher than the previous month and 
$0.41 above a year ago. According to CDFA, August 2016 Class 1 sales 
in California totaled 54.6 million gallons, 0.3% higher than a year 
ago. From January through August 2016, Class 1 sales totaled 425.4 
million gallons, down 2.7% from the comparable period in 2015. In 
Arizona, farm milk intakes are slightly higher due to cooler daytime 
temperatures, below 100 degrees. Class I sales to retailers are up as 
some grocery outlets are restocking shelves. Orders from restaurants 
and schools are flat this week. Demand for ice cream is seasonally 
waning. However, interest for other Class II products as whipped 
cream and sour cream is ramping up. In New Mexico, milk production 
had plateaued as weather conditions are getting better, compared to 
the previous week. Milk intakes are sufficient to keep balancing 
plants busy. Bottled milk orders from supermarkets and restaurants 
are steady to slightly higher. Moderate manufacturing milk volumes 
continue clearing into Class III processing facilities. According to 
the DMN National Retail Report-Dairy for the week of September 23-29, 
the national weighted average advertised price for one gallon of milk 
is $2.32, down 39 cents from last week and 22 cents lower from a year 
ago. The weighted average regional prices in the Southwest and 
Northwest are $2.31 and $1.99, respectively. Pacific Northwest milk 
intakes are steady and following typical seasonal patterns. 
Manufacturers are getting the milk they need from sources close by. 
School meal programs continue to pull good volumes into bottling. 
Manufacturers are ramping up to meet fall and winter demand for 
cheese and butter. Dairy contacts in the mountain states of Colorado, 
Utah and Idaho report milk has dropped a little due to seasonal 
weather changes. The impacts on milk shipments, however, are minimal 
and most processors say there is plenty of milk for processing needs. 
The area is getting some rain and snow at higher elevations. The snow 
is a welcome sign for the promise of irrigation water for next year's 
growing season. Most dairy farmers are entering into the fall and 
winter season with a good quantity and quality feed stuffs. In the 
west, demands for condensed skim from NDM and SMP manufacturers are 
strong, but weak from ice cream makers. Some condensed skim volumes 
are clearing into Class III. Western cream supplies are more 
available. Moderate to heavy cream loads continue clearing into 
butter churning. Interest for cream to manufacture whips and dips is 
seasonally active. This week, multiples for all classes are lower, 
ranging from 1.08 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