MD_DA240 DA MD DA240 FLUID MILK AND CREAM REVIEW - WEST Madison, WI May 25, 2017 (REPORT 21) FLUID MILK AND CREAM - WEST California milk marketers report that farm milk production remains mix throughout the week. In some areas, farm milk output is lower, while in other areas, it is higher. With the coming Memorial Day weekend, milk availability is expected to increase as many balancing plants will be closed on Monday. Class 1 interest from educational institutions and bottlers is flat. According to California Department of Food and Agriculture, April 2017 pool receipts of milk in the state total 3.26 billion pounds. This is 1.9% lower compared to the same month a year ago. From January through April 2017, receipts are 3.3% lower from the comparable period in 2016. The Value at Test price is $15.21, $0.27 lower than the previous month, but $1.68 above a year ago. The percentage of receipts used in Class 1 products is 12.31%. The April quota price is $15.72 and the over quota price is $14.02. These prices are $0.12 below last month, but $1.41 higher from a year ago. According to CDFA, April 2017 Class 1 sales in California totaled 50.0 million gallons, down 7.9% from last month, and down 7.3% from the previous year. From January through April 2017, Class 1 sales totaled 208.1 million gallons, down 4.0% from the comparable period in 2016. In Arizona, milk production is lower this week compared to last week. However, there are enough supplies to meet processing needs. Balancing plants are running at near full capacity clearing any excess milk. Class I intakes from schools are lower as they prepare to close for the summer break. Class II milk requests from ice cream manufacturers are active. In New Mexico, milk yield is steady to slightly lower due to temperatures getting warmer. Bottled milk demands from educational institutions continue to be lower as most schools closed this week for the summer break. Class II demand is light, and Class III interest is steady. Most processors who had repair/maintenance work last week are back on track and are taking their normal milk volumes. Pacific Northwest milk production is edging seasonally higher. Warmer temperatures have been building into the region and aiding cow comfort. However, milk production in Oregon and Washington are both down from the previous year, and some industry analysts say a few dairy farms have shut down within the area. Bottling demand is waning as more educational institutions close for the school year. Milk intakes are plentiful for manufacturing needs. In the mountain states of Idaho, Utah and Colorado, milk production is strong. Milk intakes are plentiful. Manufacturers are taking advantage of available low- priced spot loads of milk to fill gaps in processing capacity. However, as the spring flush builds, these loads are becoming less attractive compared to local milk supplies. Industry contacts suggest cow numbers in the region are up, but milk per cow is a little behind, possibly due to lingering effects of the harsh winter and early season flooding in parts of the region. Warming temperatures are improving cow comfort and farmers are starting first hay cuttings in parts of the region. The cool wet spring has set farmers behind a little. Volumes of green-chop and first crop hay may be lighter than normal, but if the weather holds, contacts expect good quality forage to be available to the dairy herd. Condensed skim inventories in the West vary from tight to higher. Some processors report that cheesemakers are requesting more loads. In the western region, cream supply is getting tighter. Prices are moving up as demand continues to increase. Some brokers report having requests they couldn't fulfill due to lack of supplies. Spot sales activities are busy. Cream multiples for all usages are slightly higher at the bottom of the range, ranging from 1.04 to 1.22. According to the DMN National Retail Report-Dairy for the week of May 19-25, the national weighted average advertised price for one gallon of milk is $2.46, down $0.12 from last week, but $0.12 higher from a year ago. The weighted average regional price in the Southwest is $1.96, with a price range of $1.89-$2.19. The weighted average regional price in the Northwest is $2.23, with a price range of $1.99-$2.50. The NASS Milk Production report noted April 2017 milk production in the 23 selected states was 17.2 billion pounds, 2.0% above a year ago. Milk cows in the 23 selected states totaled 8.72 million head, 81,000 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: April 2017 Milk Production, (USDA-NASS) (Million Lb.) % Change From 1 Year Ago Arizona 442 + 3.8 California 3440 - 1.1 Colorado 344 + 7.2 Idaho 1189 - 0.7 New Mexico 705 + 7.5 Oregon 213 - 4.1 Utah 177 + 2.3 Washington 541 - 2.5 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