MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI May 11, 2017 (REPORT 19)

FLUID MILK AND CREAM - WEST

Milk production in California is lower as warmer temperatures settle into 
the state at the beginning of the week. Cooler weather is expected toward 
the end of this week, as is modestly higher milk output. Sales into bottling 
are stable while milk intakes for ice cream and frozen dessert manufacturing 
are climbing to match the needs of some production lines. Alfalfa hay growth 
is making excellent progress, and some fields are being cut and baled. In 
Arizona, higher daytime temperatures are affecting milk output in many areas 
of the state. Milk production continues to slow down. However, there are 
enough milk supplies to meet processors' demand. Milk volumes going into 
Class I are decreasing. Class III intakes are steady to higher. Alfalfa hay, 
barley, and durum wheat are mostly rated good to excellent, and two-thirds 
of alfalfa hay was harvested last week. In New Mexico, farm milk volumes 
into manufacturing facilities are stable to somewhat decreasing this week 
compared to last week. Some processors are helping clear holdovers of milk 
created by the blizzard in Kansas. Bottled milk sales to retailers, food 
service, and educational institutions are steady to slightly down. Class II 
demand is also stable to slightly down. In New Mexico, only 27% of pasture 
and range are currently in good to excellent condition. Milk production in 
the Pacific Northwest is still increasing after a cold, wet winter. Some 
manufacturers say milk intakes are tighter than usual for this time of year. 
However, milk supplies are adequate for most processing needs and 
manufacturers are running facilities at or near full capacity. Bottling 
demand is steady, but bottlers are beginning to plan for the end of school 
terms. Farmers are working hard to get spring fieldwork completed and 
planting is behind schedule. The ample moisture has given a good start to 
forage production for the year. In Washington, 87% of the pasture and 
rangeland is in good or excellent condition, while 85% of the pasture and 
rangeland is in good or excellent condition in Oregon. Some manufacturers in 
the mountain states of Idaho, Utah and Colorado say milk production is 
steady and that they do not anticipate a large spring flush this year. They 
suggest the harsh winter and flooding earlier in the year will have created 
enough stress to curtail cow lactations in parts of the region. Processors 
report milk intakes are heavy, but not burdensome. Overall, milk supplies 
are in good balance with processing needs, and not a lot of milk is moving 
into or out of the immediate region. Spring field work is behind, but 
farmers benefitted from some favorable weather this last week. Pasture and 
rangeland is good or excellent condition is 53% of Colorado and 76% of both 
Utah and Idaho. Condensed skim demand is somewhat mixed in the West. In some 
areas, sales are higher while in other areas, they continue to be lower. 
Cream sales are finally picking up a little more this week compared to last 
week. Ice cream and frozen yogurt makers are requesting additional loads of 
cream to meet their seasonal summer needs. In some areas, cream going into 
butter churning has slowed down. Cream multiples for all Classes range 1.03 
to 1.22. According to the DMN National Retail Report-Dairy for the week of 
May 5-11, the national weighted average advertised price for one gallon of 
milk is $2.62, up $0.26 from last week, and $0.33 higher from a year ago. 
The weighted average regional price in the Southwest is $2.60, with a price
range of $1.89-$3.99. The weighted average regional price in the Northwest 
is $1.74, with a price range of $1.50-$2.39. According to the NASS Dairy 
Products report, hard ice cream production in the West region for March 2017 
is 17.7 million gallons, 25.3% higher than a month ago, but 6.1% below the 
previous year. 

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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