MD_DA240 DA MD DA240 FLUID MILK AND CREAM REVIEW - WEST Madison, WI April 13, 2017 (REPORT 15) Milk production in California continues to be up. Some reports suggest that the supplies are in excess of plants' capacities. The spring flush is approaching its peak and tankers continue to be limited for milk hauling. Bottled milk demand is steady. Contacts report that raw milk will be available at discounted prices sometime this week. According to CDFA, April 2017 Class 1 prices in California are $16.65 in the north and $16.92 in the south. The statewide average Class 1 price based on production is $16.67. This price is down $0.11 from the previous month, but $1.82 higher than a year ago. Arizona milk production is steady. However, it is lower compared to last month production. Temperatures are getting warmer and may result in lower milk output toward the weekend. Milk intakes into plants remain the same. Sales into Class I are stable. With the spring holiday nearby, milk requests from ice cream producers are higher. Milk output in New Mexico is increasing at a lower rate than earlier this year. Milk is becoming richer in components. Cheese processors reduced their daily milk intakes as they are running very full. Class I demand is slightly higher and Class II requests are lower. Surplus milk intakes by out-of-state processors declined by a few loads. Holdovers are higher and expected to increase throughout the week. Pacific Northwest milk production is slowly climbing. Wet conditions in March provided good amounts of moisture to get pastures and forages growing. Milk volumes are readily filling bottling and processing needs. Class I demand is steady. Milk intakes are in fairly good balance with most Class III processing needs. Idaho, Utah and Colorado milk production is increasing along seasonal trends. Some industry contacts suggest the spring flush has entered into the region earlier than usual. Milk output continues to improve in areas of Idaho and Utah that were impacted by flooding earlier in the year. However, a few contacts feel the poor cow comfort from the last few months may have suppressed lactation volumes into the future. Processors say there is plenty of milk for most processing needs. Condensed skim output continues to be lower and sales are also dropping. Cream is abundant in the West, but sales are down. Manufacturers are running at full capacity, making butter. Cream is in excess of churning capacities; as so, some processors are selling a few loads in the spot market. Cream premiums remain at 5 cents in California. Cream multiples range 1.05 to 1.14. According to the DMN National Retail Report-Dairy for the week of April 7-13, the national weighted average advertised price for one gallon of milk is $2.45, down 23 cents from last week, but 3 cents higher from a year ago. The weighted average regional price in the Southwest is $2.72, with a price range of $1.99-$3.99. The weighted average regional price in the Northwest is $2.59, with a price range of $1.79-$3.69. 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