MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI March 2, 2017 (REPORT 9)

In the past weeks, dramatic storms in California have caused farm 
milk production to be flat at a time where it is usually increasing. 
Fortunately, this week, mild temperatures and drier weather are 
slowly replacing the showery weather, increasing cow comfort and 
supporting farm milk output and quality. The request for bottled milk 
is up and milk is currently available for all usages. Non-irrigated 
pasture and rangeland are improving due to all the recent rain and 
few sunny days. According to California Department of Food and 
Agriculture, January 2017 pool receipts of milk in the state total 
3.23 billion pounds. This is 1.4% lower compared to the same month a 
year ago. The Value at Test price is $17.35, $0.12 lower than the 
previous month, but $2.58 above a year ago. The percentage of 
receipts used in Class 1 products is 14.04%. The January quota price 
is $17.35 and the over quota price is $15.65. These prices are $0.15 
below last month, but $2.21 higher from a year ago. According to 
CDFA, January 2017 Class 1 sales in California totaled 54.7 million 
gallons, up 0.7% from last month, but down 0.8% from the previous 
year. In Arizona, milk yield is higher this week. Current milk 
volumes are higher than that produced last year around the same time. 
However, rainy conditions at some areas have caused some delays in 
milk pickups and deliveries. Some cheese plants are working at full 
capacity. In a few plants, repair and maintenance issues slowed down 
the throughput of cream. Sales into Class III are increasing as 
handlers prepare for the spring holiday season. Harvesting of good 
quality alfalfa hay is active. Farm milk production is still trending 
higher in New Mexico this week. Holdovers continue to build up 
heavily as weeks go by. Consequently, some manufacturers are clearing 
their milk intakes into extra condensed milk. Milk volumes are more 
than sufficient to meet manufacturing needs. Interests for Class I 
are down due to school pipelines being full. Class II sales are also 
down. Some Class III processing plants are experiencing down days due 
to expansion and maintenance projects. As a result, some plant 
managers are requesting less farm milk. Pacific Northwest dairy contacts 
say milk production is increasing a little after stretches of cold, wet 
weather. Wet ground is starting to dry out and cow comfort is improving. 
Bottling demand is following seasonal patterns and there are adequate 
supplies of milk for most processing needs. Milk production in the mountain 
states of Idaho, Utah and Colorado is below seasonal patterns. Although cow 
comfort conditions are improving, parts of Idaho are still dealing with 
flooding and mud. In addition, another snow storm blanketed parts of the 
region. The moisture should assure the region of adequate water supplies for 
the growing season this year. However, there is still concern that flooding 
damaged existing feedstocks and may have drowned out some alfalfa fields. It 
may be some time before the full impact of the flooding is known. Dry 
condensed skim is readily available, moving into nonfat dry milk and 
skim milk powder. With the heavy supplies of cream in the West, some 
manufacturers are clearing more cream into butter. Others are 
processing their cream intakes into ice cream, sour cream, and frozen 
desserts. Cream multiples are still low, ranging 0.98 -1.15. 
According to the DMN National Retail Report-Dairy for the week of 
February 24-March 2, the national weighted average advertised price 
for one gallon of milk is $2.31, down 31 cents from last week and 21 
cents lower from a year ago. The weighted average regional price in 
the Southwest is $2.36, with a price range of $1.99-2.79. There were 
no reported prices for gallon milk in the Northwest this week.  

1100CT Florence.KoneGonzalez@ams.usda.gov (608)422-8594 
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