MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST
Madison, WI November 10, 2016 (REPORT 45)
Farm milk production is higher in the Central Valley of California as 
temperatures continue falling. In addition, some dairy operators are 
transitioning cows to the milking string. Milk butterfat and protein 
components continue improving approaching the seasonal peak. Milk 
intakes are in good balance with the current processing needs. 
Bottled milk orders from educational institutions are lower as most 
schools will be closed during the Veterans Day holiday. Orders from 
retailers and food service are steady. Some Class 1 and Class 2 
processors have started to pull more milk in order to make eggnog, 
flavored milk, and other holiday favorites. Alfalfa hay harvesting 
continues actively throughout the state. Milk output has plateaued in 
Arizona, as daytime temperatures remain steady, averaging 90 degrees. 
Bottled milk orders from retailers are up this week as several 
supermarkets are restocking shelves. Requests from food service are 
steady. Milk demands from many Class II processors are higher in 
order to meet the strong year-end holiday needs. In New Mexico, rainy 
conditions were reported during the beginning of the week. However, 
milk production was marginally impacted. At this point, milk yields 
are trending higher, following seasonal patterns. There were some 
minor issues with hauling due to the rains. Class I sales are down as 
most retail and food service pipelines are full. Sales into Class II 
are steady. Milk volumes moving into cheese processing facilities are 
higher this week. Dairy operators' demand for supreme/premium alfalfa 
hay is light as supplies are readily available. New Mexico is between 
the fifth and sixth cutting of alfalfa. According to the DMN National 
Retail Report-Dairy for the week of November 4-10, the national 
weighted average advertised price for one gallon of milk is $2.16. 
The weighted average regional prices in the Southwest and Northwest 
are $1.79 and $1.99, respectively. In the West, condensed skim pulls 
from Class II/III processors are improving ahead of the year-end 
holidays. Therefore, less skim supplies are clearing into NDM/SMP 
manufacturing. Milk production in the Pacific Northwest is following 
typical seasonal patterns and a little lower than previous weeks. 
Bottling demand is stable and milk intakes are steady at 
manufacturers. Some industry contacts say solids are still a little 
down as compared to previous years. In the mountain states of Idaho, 
Colorado and Utah milk production is steady and in good balance with 
processing needs. Plenty of milk is available for manufactured dairy 
products and it is finding homes at nearby plants. Demand is decent 
for bottled fluid milk products. Single serve milk items are pulling 
good volumes of milk. Western cream requests from sour cream, dips, and 
cream cheese manufacturers are inching up. In addition, butter 
churners continue pulling large amounts of cream. As a result, 
regional cream supplies are tightening, boosting cream premiums. This 
week, multiples for all classes are slightly higher, ranging from 
1.06 to 1.26. According to the NASS Dairy Products report, hard ice 
cream production in the West region for September 2016 was 14.8 
million gallons, 16.8% lower than a year ago, and 12.4% 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