MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI April 20, 2017 (REPORT 16)

California milk output is steadily climbing, following seasonal patterns. 
Farm milk production is getting close to the spring flush's peak level. 
Right before the past holiday weekend, fluid milk demand was down, 
especially in the Northern area. However, this week, demand is slightly 
improving as most grocery stores and retailers increase their orders. In 
Arizona, milk production continues steadily as temperatures get warmer, 
nearing 100 degrees. Dairy processors anticipate milk production to slide 
downward as they head to the summer. Bottled milk demand remains stable. 
Milk intakes into Class IV are higher. Manufacturers have sufficient milk 
for all processing needs. In New Mexico, farm milk yield is steady for the 
most part. However, a few contacts reported excessive milk supplies 
outweighing processing capacities in some areas. Class I intakes are 
slightly improving due to schools resuming their courses after the spring 
holiday. Class II sales are up. Manufacturing milk volumes into Class III 
are also higher. Milk production in the Pacific Northwest is getting 
stronger. Farm conditions and cow comfort are conducive to robust milk 
output. Bottling demand is following seasonal patterns and is coming back 
after a slower stretch due to spring breaks at educational institutions. 
Manufacturers are not having any trouble getting the milk needed for 
processing. Idaho, Utah and Colorado milk production is steadily increasing. 
After crummy milk production weather in Idaho late last winter, milk output 
has caught up with milk needs. Industry contacts are somewhat mixed on their 
view of milk supplies depending on available processing capacity. A few are 
saying milk volumes are balanced and comfortable, while others suggest milk 
has gotten a bit sloppy. Some contacts report spot loads are moving around 
the region at discounted prices. Condensed skim production is steady and 
sales are flat. Cream availability in the Western region is above current 
processing needs. Brokers are struggling to find homes for cream. Some 
contacts suggest that less cream is moving to Canada and Mexico. As a 
result, there is more cream available than expected in the domestic market. 
A number of manufacturers, who have more than enough cream, are limiting 
their spot loads purchase. Cream premiums in California are 5 cents. Cream 
multiples are ranging 1.12 to 1.13. According to the DMN National Retail 
Report-Dairy for the week of April 14-20, the national weighted average 
advertised price for one gallon of milk is $3.78, up $1.33 from last week, 
and $1.37 higher from a year ago. The weighted average regional price in the 
Southwest is $2.66, with a price range of $2.19-$2.99. No ads were reported 
in the Northwest.

1100CT Florence.KoneGonzalez@ams.usda.gov (608)422-8594 
Mike.Bandli@ams.usda.gov (608)422-8592 
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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