MD_DA240 DA MD DA240 FLUID MILK AND CREAM REVIEW - WEST Madison, WI April 6, 2017 (REPORT 14) California milk production is quickly increasing this week. Their spring flush is finally here after being delayed by recent rains. Some industry contacts believe that milk production will continue to improve during coming weeks. There are adequate supplies of farm milk to meet processing needs. Bottled milk demand is steady. Milk intakes into Class II is increasing in preparation for the holidays. The March 4a price (butter/powder) in California is $13.96, down $1.44 from the previous month, but $1.55 higher from a year ago. This compares to the Federal Order Class IV price of $14.32 for March. The March 4b price (cheese) is $13.76, down $2.05 from the previous month, but $0.52 above a year ago. This compares to the Federal Order Class III price for March at $15.81. According to CDFA, April 2017 Class 1 prices in California are $16.76 in the north and $17.04 in the south. The statewide average Class 1 price based on production is $16.78. This price is down $1.85 from the previous month, but $1.51 higher than a year ago. Arizona's milk yield is slowly decreasing. The weather is getting warmer, conducive to cows discomfort and reduced milk production. Dairy farmers reached their peak milk output early in March, and are gradually coming out of the spring flush. The demand for Class 1 is steady. Many local handlers have increased their Class II milk intakes for the holidays. Currently, New Mexico milk production continues to increase steadily. Total production is up by a few loads. A small number of cheese factories continue to have minor issues, which slightly decreased their milk intakes into Class III. Other manufacturing plants are taking additional loads to help clear milk supplies. Class I sales are down, but Class II sales are up. Some contacts report that surplus sales to out-of-state manufacturers are slightly higher. Milk production in the Pacific Northwest is slowly growing. Industry contacts report milk intakes are in fairly good balance with processing needs. Bottling demand is steady. Farmers are dealing with wet conditions along the coast, but fields are drying out nicely further inland. Water and forages appear to be in good supply for spring milk production. Idaho, Utah and Colorado contacts report plenty of milk is available. Some additional milk is being shipped in from outside the region to keep cheese plants at full capacity, but manufacturers report the number of loads is decreasing as production builds across the region. Milk production is improving in the areas that were impacted by flooding last month. Fields are drying out and small grains are starting to get planted. Condensed skim production dropped in the western dairy market as more milk is clearing into nonfat dry milk. Western cream production remains strong this week. A few processors stop making butter, but may have to go back to churning after the holidays. Many handlers are turning their cream into cheese and ice cream. Cream premiums in California are about 5 cents. Cream multiples across the West are 1.05 to 1.18. According to the DMN National Retail Report-Dairy for the week of March 31-April 6, the national weighted average advertised price for one gallon of milk is $2.68, up 26 cents from last week, but 8 cents lower from a year ago. The weighted average regional price in the Southwest is $2.32, with a price range of $1.89-2.99. The weighted average regional price in the Northwest is $2.19, with no price range. According to the NASS Dairy Products report, hard ice cream production in the West region for February 2017 is 14.1 million gallons, 4% lower than a year ago and 1.6% below the previous month. 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