MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI May 18, 2017 (REPORT 20)

FLUID MILK AND CREAM - WEST

California handlers indicate that milk production is mixed this week. In 
some areas, it is higher, while other areas see a decline in production. A 
handful of processors have increased their milk intakes as some dairies are 
changing where their milk goes for processing. Fluid milk interest is flat 
as many school districts adjust their orders in preparation to close for the 
summer break. Farm milk output in Arizona is mixed due to the weather being 
cooler this week. Temperatures are expected to be back into the 100s by next 
week. Balancing plants are processing the increased volumes with minimal 
delays. Bottled milk orders from educational institutions are steady to 
lower as they get ready to close for the upcoming summer break. New Mexico 
milk production at the farm level is flat. Handlers report that the 
availability of spot milk is increasing as a result of less milk utilization 
by processors. A number of processors have scheduled repair/maintenance 
downtime that forces them to reduce their daily intakes. Class I interest is 
slightly down and Class II demand is steady. Pacific Northwest milk 
production is steady to higher. Cow comfort has improved as warmer 
temperatures and a little less rain build into the region. Bottling demand 
is edging back as the school terms at some educational institutions are 
coming to a close. Manufacturers report no problems getting the milk needed 
for processing. Many processors are running facilities at or near capacity. 
Famers anticipate adequate irrigation water for crops. Reservoir levels are 
near or above average in Oregon. In Washington, reservoirs have been kept 
low in anticipation of heavy spring and summer runoff. Milk production is 
generally flat across much of the mountain states of Idaho, Utah and 
Colorado. Area manufacturers report unfilled processing capacity is limited 
due to the discounted milk loads that are widely available. In addition, 
industry contacts report a considerable amount of condensed skim milk is 
coming into the mountain states from other regions. The ample supplies are 
challenging processors to find ways to make use of the milk. Reservoir 
storage is near or above average levels in the mountain states, suggesting a 
good supply of irrigation water for forage production. Demand for condensed 
skim in the West picked up slightly with ice cream and frozen desert makers 
increasing their usage. Cream demand continues to slowly move up in the 
Western region. Demand by butter manufacturers is a little higher than 
usual.  Supplies are still abundant, but starting to firm up a little bit. 
Intakes into frozen desserts production are also increasing. Contacts report 
that some butter processors are hoping to stop churning cream very soon. 
Cream multiples for all Classes are steady, ranging from 1.03 to 1.22. 
According to the DMN National Retail Report-Dairy for the week of May 12-18, 
the national weighted average advertised price for one gallon of milk is 
$2.58, down $0.04 from last week, but $0.31 higher from a year ago. The 
weighted average regional price in the Southwest is $2.58, with a price 
range of $1.99-$3.99. 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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