MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST
Madison, WI November 3, 2016 (REPORT 44)
In California, the humid conditions caused by recent thunderstorms 
are reducing farm milk production. However, according to many 
manufacturers, milk supplies are in good balance with processing 
needs. Class 1 requests from retailers are up, but steady from food 
service. Bottled milk orders from educational institutions are steady 
to lower, as some schools will be closed during the next week's 
Veterans Day holiday. Some manufacturers have started production of 
holiday specialty drinks, such as eggnog and flavored milk. Demands 
for sour cream and cream cheese are strong as the Q4 holidays 
approach. The October 4a price (butter/powder) in California is 
$13.11, down 47 cents from the previous month and $2.61 lower from a 
year ago. This compares to the Federal Order Class IV price of $13.66 
for October. The October 4b price (cheese) is $14.43, down 81 cents 
from the previous month and 32 cents below a year ago. This compares 
to the Federal Order Class III price for October at $14.82. In 
Arizona, milk yields are higher, following seasonal patterns. Milk 
butterfat and protein components are seasonally improving. Milk 
volumes are sufficient to meet current manufacturing needs. Class I 
pulls from many retail channels are strong, but steady from food 
service accounts. Demand for Class II is active ahead of the year-end 
holidays. Milk intakes moving into Class III processing facilities 
are higher this week. In New Mexico, milk output is trending higher. 
The cooler temperatures are reducing stress on cows. Bottled milk 
sales to grocery stores are up this week. Class II sales are steady. 
Milk volumes moving into cheese processing are higher. According to 
the DMN National Retail Report-Dairy for the week of October 28 to 
November 3, the national weighted average advertised price for one 
gallon of milk is $2.54. The weighted average regional prices in the 
Southwest and Northwest are $2.40 and $1.99, respectively. 
Pacific Northwest milk production is seasonally lower. Recent cold 
and rainy weather is impacting cow comfort and suppressing milk 
production somewhat. Bottling demand is steady. Manufacturers say 
milk intakes are fairly well balanced with processing needs. Milk 
production in the mountain states of Colorado, Utah and Idaho is 
following typical seasonal patterns. Industry contacts say although 
farm milk production is in the lower end of the annual cycle, dairy 
manufacturers are getting plenty of milk for most processing needs. 
Contacts suggest Idaho has had some herd expansion and milk is 
readily available in the state. Much of the milk produced is still 
finding homes close by.

Western condensed skim sales to Class II are steady to slightly 
higher ahead of the upcoming holidays. Meanwhile, some regional plant 
operators are actively drying condensed skim volumes. Western 
manufacturers of cream cheese, sour cream, cultured and whipped dairy 
products are pulling substantial cream volumes. Competition for cream 
among multiple processors is steadily growing. However, there is 
enough cream for churning. Western butter production remains active. 
This week, multiples for all classes are higher, ranging from 1.05 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