MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST
Madison, WI December 1, 2016 (REPORT 48)
In California, milk production is up, following seasonal patterns. In 
addition, some producers are expanding the size of their dairy herd. 
After the past Thanksgiving holiday weekend, milk pulls from bottlers 
are inching up as most educational institutions reopened this week. 
Class 1 requests from retailers and food service are fair to good. 
Milk volumes moving into Class 2 and Class 4b (cheese) are higher, 
mostly driven by the strong year-end holiday demands. According to 
California Department of Food and Agriculture, October 2016 pool 
receipts of milk in the state total 3.15 billion pounds. This is 0.9% 
higher compared to the same month a year ago. From January through 
October 2016, receipts are 1.9% lower from the comparable period in 
2015. The Value at Test price is $15.32, $0.53 lower than the 
previous month and $0.75 lower from a year ago. The percentage of 
receipts used in Class 1 products is 14.48%. The October quota price 
is $15.74 and the over quota price is $14.04. These prices are $0.60 
lower than September 2016 and $0.86 below a year ago. According to 
CDFA, October 2016 Class 1 sales in California totaled 54.7 million 
gallons, down 5.5% from the previous year. From January through 
October 2016, Class 1 sales totaled 534.4 million gallons, down 2.9% 
from the comparable period in 2015. In Arizona, a comfortable climate 
for the dairy cows is increasing milk yields at the farm level. Milk 
intakes are in balance with processing needs. Higher milk volumes are 
moving into Class I as most schools are refilling pipelines. In 
addition, some grocery stores are restocking shelves. Bottled milk 
requests from the food service sector are steady. In New Mexico, farm 
milk intakes are slightly higher due to cooler daytime temperatures. 
Class I orders are improving as most schools are resuming courses 
after the Thanksgiving holiday break. Sales into Class II are steady 
this week. Milk volumes moving into Class III are lower as some 
cheese plants managers are performing repair/maintenance works in 
their facilities. Recent cool, wet weather is placing a damper on 
milk production in the Pacific Northwest. Although cow comfort is not 
as good, manufacturers report milk is sufficient for most processing 
needs. Bottling demand from educational institutions is returning 
after the Thanksgiving holiday break. Milk intakes are well balanced 
with processing needs. Milk production in the mountain states of 
Idaho, Colorado and Utah is strong. Industry contacts say there is a 
lot of good quality feed for the region's dairy herds. Manufacturers 
are seeing no slowdown in milk intakes and there is plenty of milk 
for processing needs. Some snow is accumulating at higher elevations, 
a promising sign that there will be water available for next year's 
irrigation needs. According to the DMN National Retail Report-Dairy 
for the week of November 25 to December 1, the national weighted 
average advertised price for one gallon of milk is $2.72. The 
weighted average regional price in the Southwest is $1.99. Condensed 
skim usage for cheese fortification and NDM processing is active in 
the West region. In addition, Class II processors are pulling fair 
amounts of condensed skim in order to meet the strong seasonal buyer 
needs. After the past shortened-holiday week, competition for cream 
from several western processors is raising again. Pulls from sour 
cream, cream cheese, and butter manufacturers are strong. Therefore, 
cream supplies are getting a little tight in some processing plants. 
This week, multiples for all classes are steady to higher, ranging 
from 1.05 to 1.26. 




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