MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI March 16, 2017 (REPORT 11)

Dairy producers in California suggest that milk output is higher this 
week. Cows are back to their comfortable temperatures as the weather 
remains dry and warm throughout the week. Fluid milk requests are 
slightly higher. Harvesting of alfalfa hay is active in the region. 
International markets are aggressively purchasing domestic hay at 
higher prices. Domestic consumers have sufficient stocks of hay for 
their cows. Arizona milk yield is rapidly increasing as weather 
continues to be warmer. Bottled milk intakes by schools are lower as 
some students are currently on spring break. With the spring holiday 
around the corner, some contacts report that milk going into Class II 
production is higher. Dairy processors expect to see their peak flush 
very soon. Last week, the dairy industry in New Mexico was 
experiencing some disturbances to the haulage and processing of milk. 
Fortunately, this week, farm milk activities seem to be almost back 
to normal. Milk production is building up following its normal 
course. The weather is getting warmer as days go by. As the result, 
farmers expect milk output to reach its peak before long. Class II 
demands are still on the down side as many manufacturers have enough 
stocks to meet processing requests. Class I sales continue to be 
lower with spring break around the corner. Pacific Northwest milk 
production is seasonally climbing due to the lengthening days and 
slightly warmer temperatures. Milk is readily available for most 
processing needs. Bottling demand is steady. Industry contacts say 
the region has gotten plenty of rain and snow and should be in good 
shape for irrigating crops this summer. Contacts in the mountain 
states of Idaho, Utah, and Colorado report steady to rising milk 
intakes. Favorable weather is helping to dry out some paddocks in 
Idaho and Northern Utah where flooding earlier in the month created 
hardships for farmers and dairy cows. A few farms are still working 
through issues with mud, water and degraded feedstocks. Manufacturers 
say milk intakes are mostly steady and there isn't any difficulty 
getting enough milk for processing. School milk bottling is steady, 
although bottlers expect some slowdown as schools enter into spring 
breaks. Western condensed skim production is currently steady to 
slightly lower. Arizona sales remain steady. Some plants in Arizona 
are experiencing down time for repairs and maintenance. As a result, 
some handlers are moving condensed skim at lower prices from Arizona 
to California. Cream output is higher along the West coast as farm 
milk continues to be readily available. However, the requests for 
cream are steady, while the prices are mixed. There are more than 
sufficient volumes of cream to meet processing requirements. Cream 
multiples are 1.07 to 1.18. According to the DMN National Retail 
Report-Dairy for the week of March 10-16, the national weighted 
average advertised price for one gallon of milk is $2.51, down 60 
cents from last week and 3 cents lower from a year ago. The weighted 
average regional price in the Southwest is $2.49, with a price range 
of $1.99-2.99. No ads were reported in the Northwest.

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