MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST
Madison, WI November 22, 2016 (REPORT 47)
Unfavorable weather conditions are forecast throughout the week in 
California. Therefore, dairy operators are anticipating lower farm 
milk yields this week. Bottled milk orders from educational 
institutions are lower as most schools will be closed during the 
Thanksgiving holiday break. However, retail requests are up as 
bottlers are filling last minute grocery shopping. After the middle 
of the week, milk volumes moving into balancing plants are expected 
to be heavier. In Arizona, milk production is higher due to cooler 
temperatures. Class I orders from educational institutions are down. 
However, requests from retailers and some restaurants are higher, 
driven by the upcoming holiday needs. Customers' demands for eggnog, 
cream cheese, and sour cream are seasonally strong. In New Mexico, 
farm milk output is higher, sustained by favorable climate 
conditions. Orders from bottlers are noticeably down mainly due to 
the Thanksgiving holiday break in most schools. Therefore, more milk 
volumes are moving into balancing plants. As a result, drying 
schedules in some plants are expected to be very active, adding to 
NDM/SMP inventories. According to the DMN National Retail Report-
Dairy for the week of November 18-24, the national weighted average 
advertised price for one gallon of milk is $2.61. The weighted 
average regional price in the Southwest is $1.99. Class II processors 
are requesting less condensed skim supplies due to the shortened week 
operational schedules. Consequently, higher condensed skim volumes 
are clearing into NDM processing. Milk production in the Pacific 
Northwest is seasonally strong. Bottling demand is solid, however 
some additional milk is finding its way to manufactured dairy 
products over the Thanksgiving holiday. Milk supplies are readily 
available for cheese manufacturing. In the mountain states of Idaho, 
Colorado and Utah, milk production is following typical seasonal 
patterns. Milk is readily available for most processing needs. Idaho 
and Colorado dairy farms have added cow numbers and the new 
production continues to find homes at dairy processing facilities 
nearby. Many Class II are pulling less cream volumes during this 
holiday-shortened processing week. As a result, cream supplies are 
more available in the market and premiums are lower. This week, 
multiples for all classes are down, ranging from 1.05 to 1.24. The 
NASS Milk Production report noted October 2016 milk production in the 
23 selected states was 16.5 billion pounds, 2.7% above a year ago. 
Milk cows in the 23 selected states totaled 8.67 million head, 31,000 
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:  

October 2016 Milk Production, (USDA-NASS)
 
                     (Million Lb.)        % Change From
                                            1 Year Ago
  
Arizona                   377                + 0.3
California              3,302                + 1.8
Colorado                  329                + 3.1
Idaho                   1,243                + 4.0
New Mexico                650                + 1.1
Oregon                    212                   ...
Utah                      172                - 5.5
Washington                554                + 1.3



1430CT 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