MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI June 1, 2017 (REPORT 22)

FLUID MILK AND CREAM - WEST

Farm milk output is variable in California this week. Many contacts report 
lower milk production, while others suggest that it is flat to up. In 
addition, some plant managers indicate that less milk is going to the 
dryers. Fluid milk demand is down as schools are starting to wind down. 
Alfalfa fields were making excellent progress and being cut and dried. 
Pasture and rangeland conditions are good or excellent in 75 percent of 
California. Milk production continues to trend downward in Arizona due to 
higher daytime temperatures. Manufacturers report temperatures topping 100 
degrees in some areas. According to industry contacts, so far milk supplies 
have increased by approximately 3% this year compared to last year. Class I 
sales are down with schools being out. Processors are balancing more milk in 
wait of the next school session as handlers continue to push back on milk. 
Alfalfa and barley were rated mostly good to excellent depending on the 
location. Harvesting was taking place on three quarters of the alfalfa 
across the state of Arizona. In New Mexico, farm milk production is trending 
lower as the weather continues to be hotter. Various plants operators 
indicate that supplies are heavy and available to meet processing needs. As 
educational institutions closes or get ready to close, Class I interest is 
lower. Class II milk orders from Ice cream and frozen desert manufacturers 
are increasing. Pacific Northwest milk production, down year over year, is 
seasonally edging higher. With the end of the school year, some milk intakes 
are shifting from bottling to manufacturing. Industry contacts report no 
trouble getting the milk needed for most processing needs. After a week of 
dry weather, farmers are getting caught up on field work and making the 
first cuttings of hay. Pasture and rangeland conditions are good or 
excellent in 90 percent of Washington and 49 percent of Oregon. Milk 
production in the mountain states of Colorado, Utah and Idaho is strong. 
Milk per cow may be a little lower than previous years, but a strong crop of 
replacement dairy cows has helped refill milk tanks. Milk intakes are 
plentiful and manufacturers are having no trouble getting the milk needed 
for processing. Farmers are making their first cuttings of hay. Pasture and 
rangeland conditions are good or excellent in 76 percent of Colorado, 85 
percent of Utah, and 81 percent of Idaho. Western condensed skim intakes 
from Class II manufacturers are steady to increasing, easing the pressures 
on dryer schedules. In the West, butterfat components are dropping 
seasonally, mainly in areas with higher temperatures. Cream supplies are 
tight to comfortable, and manufacturers are making butter to accommodate any 
extra cream. The market anticipates that butter inventories will get tighter 
in the coming months. Demand is increasing as ice cream and frozen desserts' 
manufacturers increase their orders. Cream multiples for all usages are 1.06 
to 1.22. According to the DMN National Retail Report-Dairy for the week of 
May 26-June 1, the national weighted average advertised price for one gallon 
of milk is $3.46, up $1.00 from last week, and $0.53 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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