MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI July 20, 2017 (REPORT 29)

California farm milk output is mixed. Some contacts report that the cool 
nights have helped production to bounce back a little between the heat 
waves. Others say that production is dropping. With schools being closed for 
the summer, Class 1 sales are steady to lower. A few industry contacts 
report looking to buy bottled milk and not finding the volume needed. They 
also suggest that milk prices are increasing in the spot market. In Arizona, 
milk production is dropping, affected by hot and humid weather. Recent 
storms brought in more humidity that created discomfort for the cows. Due to 
repair/maintenance work at some plants, milk from the South Central region 
is flowing to Arizona for processing. Manufacturers have enough milk 
supplies for processing needs. Bottling milk demand is steady. In New 
Mexico, milk production is diminishing. Most handling plants that reduced 
their intakes last week for repair/maintenance are back to normal 
activities. As the result, holdovers are lower this week and easier to 
manage. Class I and II intakes are steady to up. Ice cream manufacturers 
continue to take more milk loads. Requests for Class III are steady to 
slightly down. Pacific Northwest milk production is generally steady. A few 
industry contacts say weather that is favorable to cow comfort has made up 
for the miserable winter the region had this year and has given a boost to 
milk production in some locations. Milk intakes are in good balance with 
processing needs. Bottling demand is in typical summertime patterns. Milk 
production in the mountain states of Idaho, Utah and Colorado is steady to 
slightly lower. Although the region has experienced some heat this summer, 
cooler nights are keeping the impacts of the heat on milk production to a 
minimum. Manufacturers report plenty of milk available for processing. Many 
processors are running at or near full capacity. Contacts report that 
western condensed skim prices are mixed in the spot market. Most sales are 
made on contracts. Condensed skim sales are flat to higher. A number of 
cheese plants in California are pulling in more condensed skim. In the West, 
the market tone for cream is balanced or strong depending on the state. Some 
cream buyers report not having any trouble finding the volume of cream 
needed. They say that cream is more available than it usually is for this 
time of the year. Cream sales in California are slowing a little bit. Some 
cream loads from Arizona are moving to the Midwest. This week cream 
multiples for all usages are 1.12-1.27. According to the DMN National Retail 
Report-Dairy for the week of July 14-20, the national weighted average 
advertised price for one gallon of milk is $2.26, down $0.13 from last week, 
and $0.46 lower from a year ago. The weighted average regional price in the 
Southwest is $2.08, with a price range of $1.89-$2.39. The weighted average 
regional price in the Northwest is $1.92, with a price range of $1.69-1.99.

1100CT Florence.KoneGonzalez@ams.usda.gov (608)422-8594 
Michael.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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