MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI March 30, 2017 (REPORT 13)

Farm milk output is up in California. Some industry contacts believe that 
the spring flush has started this week. Temperatures are getting nicer and 
more favorable to cows' comfort. Bottled milk demand is steady due to school 
districts being on spring break. According to California Department of Food 
and Agriculture, February 2017 pool receipts of milk in the state total 2.96 
billion pounds. This is 6.1% lower compared to the same month a year ago. 
From January through February 2017, receipts are 3.7% lower from the 
comparable period in 2016. The Value at Test price is $17.00, $0.35 lower 
than the previous month, but $2.76 above a year ago. The percentage of 
receipts used in Class 1 products is 13.52%. The February quota price is 
$17.19 and the over quota price is $15.49. These prices are $0.16 below last 
month, but $2.40 higher from a year ago. According to CDFA, February 2017 
Class 1 sales in California totaled 49.0 million gallons, down 6.4% from 
last month, and down 3.5% from the previous year. From January through 
February 2017, Class 1 sales totaled 103.7 million gallons, down 3.5% from 
the comparable period in 2016. Arizona's milk yield is lower, but in line 
with processing needs. Some contacts report that the region is coming into 
the home stretch of its spring flush. In many manufacturing plants, farm 
milk is mostly clearing into dry lactose and nonfat dry milk. However, sales 
have been slower. The requests for bottled milk are stable. Milk production 
in New Mexico continues to increase. Class I demands are slightly up as many 
school districts across the region are returning from spring break. Class II 
sales are slightly lower. Most balancing plants are working at full capacity 
and meeting processing needs. A few plants have dryer repairs and 
maintenance works that reduced their Class IV intakes. As a result, more 
condensed skim is clearing into Class III. Contacts report that some 
handlers have additional loads of milk and are looking for out of state sale 
outlets. Greater Alfalfa field management is required this year due to the 
presence of Weevil in most of the fields. Pacific Northwest milk production 
is stable to higher as spring weather builds into the region. Milk intakes 
are strong along the coast and are a little slower to develop inland. 
Industry contacts believe production to grow there as well in the next few 
weeks. Bottlers say demand is stable and matching what is expected. There is 
plenty of milk available for processing and many manufacturers are at or 
near capacity. Milk production in the mountain states of Idaho, Utah, and 
Colorado continues to climb as cow comfort improves. Pastures and hay fields 
are greening and farmers are just starting to plant small grains. 
Manufacturers report plenty of milk available for processing. Milk produced 
in the mountain states is finding a home within the region. A few industry 
contacts suggest there may be a few loads of milk coming into the region 
from parts of the Southwest at discounted prices. Reservoirs are filled and 
some contacts say the water authority may release some water to better 
manage additional spring melt from the mountains. Farmers expect plenty of 
water available to support livestock and cropping needs. Western Condensed 
skim is readily available. Contacts report that prices are dropping. Sales 
are low and not keeping up with production. Cream continues to be plentiful 
throughout the Western region. Cream intakes from Ice cream makers are 
higher in view of the upcoming summer. Inventories are plentiful and 
clearing into butter. Some contacts report a shortage of tankers. Many cream 
sellers have to look for tankers out of their regions. Cream multiples are 
1.08-1.19. According to the DMN National Retail Report-Dairy for the week of 
March 24-30, the national weighted average advertised price for one gallon 
of milk is $2.42, DOWN 17 cents from last week and 16 cents lower from a 
year ago. The weighted average regional price in the Southwest is $2.40, 
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-
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