MD_DA240 DA MD DA240 FLUID MILK AND CREAM REVIEW - WEST Madison, WI April 27, 2017 (REPORT 17) Farm milk production in California is active, following normal seasonal patterns. Industry contacts report that some parts of the state have milk available for spot sales at discounted prices. Milk intakes into Class 1 continue to be higher. Manufacturers are getting enough milk to meet their processing needs. Warmer weather conditions in Arizona are conducive to lower milk output. However, milk supplies are adequate and in line with processing needs. Demand for Class I continues to be steady. Milk intakes into Class IV are increasing. Milk production is steadily higher in New Mexico. Processors have been managing well their excess milk supplies. Milk intakes into Class I and Class II are slightly down this week. A few manufacturing plants temporary reduced their daily milk intakes for repairs and maintenance work. Pacific Northwest milk production continues to grow. Although damp conditions persist across parts of the region, cow comfort is favorable for strong milk output. Milk is in good supply for most processing needs and bottling demand is steady. Milk production in the mountain states of Idaho, Utah and Colorado is strengthening. Most manufacturers are not having any trouble getting milk for processing. In some cases, milk is moving around the region at discounted prices. Industry contacts report precipitation is delaying some spring fieldwork. Feedstocks are generally in good supply as dairy farmers wait for new crop harvest. Western condensed skim volumes are increasing; however, demand is still lower. Western cream continues to be readily available in the dairy market, outweighing processing capacities. A few contacts suggest that cream from the Southwest region is moving into Idaho. Cream premiums in California are still around 5 cents. Cream multiples this week range 1.08 to 1.19. According to the DMN National Retail Report-Dairy for the week of April 21-27, the national weighted average advertised price for one gallon of milk is $2.44, down $1.34 from last week, but $0.09 higher from a year ago. The weighted average regional price in the Southwest is $2.41, with a price range of $1.89-$2.99. The weighted average regional price in the Northwest is $1.79, with no price range. According to California Department of Food and Agriculture, March 2017 pool receipts of milk in the state total 3.32 billion pounds. This is 3.8% lower compared to the same month a year ago. From January through March 2017, receipts are 3.7% lower from the comparable period in 2016. The Value at Test price is $15.48, $1.52 lower than the previous month, but $1.60 above a year ago. The percentage of receipts used in Class 1 products is 13.29%. The March quota price is $15.84 and the over quota price is $14.14. These prices are $1.35 below last month, but $1.24 higher from a year ago. According to CDFA, March 2017 Class 1 sales in California totaled 54.3 million gallons, up 11.0% from last month, but down 1.8% from the previous year. From January through March 2017, Class 1 sales totaled 158.0 million gallons, down 2.9% from the comparable period in 2016. The NASS Milk Production report noted March 2017 milk production in the 23 selected states was 17.5 billion pounds, 1.8% above a year ago. Milk cows in the 23 selected states totaled 8.71 million head, 72,000 head more than a year ago. The following table shows western states included in the report and the monthly milk production changes compared to a year ago: March 2017 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Arizona 447 + 0.4 California 3501 - 2.9 Colorado 353 + 7.3 Idaho 1214 - 1.0 New Mexico 726 + 9.0 Oregon 218 - 4.0 Utah 179 + 1.7 Washington 553 - 3.3 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- home