MD_DA240 DA MD DA240 FLUID MILK AND CREAM REVIEW ? WEST Madison, WI July 27, 2017 (REPORT 30) California handlers report that milk intakes clearing to bottlers are steady this week. Farm milk production is steady to slightly lower. Hot temperatures continue to melt the snow on the mountains, making water more available for pasture and rangeland irrigation. Manufacturing plants are working at or near full capacity, and milk seems to be in good balance with processing needs. Hot daytime temperatures continue to affect cows' milk yield in Arizona. Milk production is lower following normal seasonal pattern. However, manufacturers don't have any problem getting the volume of milk needed for processing activities. Milk demand from Class I is stable. Contacts report an active milk intake for Class II production. In Arizona, fifty-nine percent of alfalfa hay is rated good to excellent, and three quarters of alfalfa is being harvested. Topsoil moisture is 100 percent adequate. New Mexico farm milk production shifted down as the summer continues to bring forth higher temperatures and a few heavy rainfalls, distressing the well-being of cows. Bottling milk demand is a little up while Class II intakes are steady to lower. Manufacturing milk volumes going into Class III are trending up. Some contacts report that milk is moving from the Southwest to the East. Fifty-nine percent of alfalfa hay third cutting is complete, and thirty percent of the fourth cutting is complete. Sixty-six percent of alfalfa hay is in good to excellent condition. Pacific Northwest milk production is following typical seasonal patterns. Favorable weather, conducive to good cow comfort, continues to support steady milk production. Manufacturers say there is plenty of milk for most processing needs. Bottling demand is steady and ice cream and other Class II manufacturers are pulling good volumes of cream and fluid milk. In the mountain states of Idaho, Utah and Colorado, milk intakes are in relatively good balance. Although the region has had some hot days, cooler nights have helped the cows recharge and keep milk production steady. Manufacturers report not having any trouble getting the milk they need. Although minor disruptions occurred at several area processing facilities, the setbacks did not impede milk handling much. Industry contacts say only a few loads of milk needed to be juggled around, but they quickly found homes within the region. In the West, manufacturers are selling more condensed buttermilk due to dryers' limited availability. Cream sales are active, and supplies remain less firm than usual. Cream multiples for all usages range 1.05-1.27. According to the DMN National Retail Report-Dairy for the week of July 21- 27, the national weighted average advertised price for one gallon of milk is $2.43, up $0.17 from last week, and $0.02 higher from a year ago. The weighted average regional price in the Southwest is $2.73, with a price range of $2.59-$2.97. No ads were reported in the Northwest. According to California Department of Food and Agriculture, June 2017 pool receipts of milk in the state total 3.11 billion pounds. This is 3.2 percent lower compared to the same month a year ago. From January through June 2017, receipts are 3.1 percent lower from the comparable period in 2016. The Value at Test price is $16.47, $0.57 higher than the previous month, and $2.67 above a year ago. The percentage of receipts used in Class 1 products is 12.67 percent. The June quota price is $17.08 and the over quota price is $15.38. These prices are $0.62 above last month, and $2.46 higher from a year ago. According to CDFA, June 2017 Class 1 sales in California totaled 48.8 million gallons, down 9.2 percent from last month, and down 2.7 percent from the previous year. From January through June 2017, Class 1 sales totaled 310.6 million gallons, down 3.3 percent from the comparable period in 2016. The NASS Milk Production report noted June 2017 milk production in the 23 selected states was 16.9 billion pounds, 1.7 percent above a year ago. Milk cows in the 23 selected states totaled 8.73 million head, 83,000 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: June 2017 Milk Production, (USDA-NASS) (Million Lb.) Percent Change From 1 Year Ago Arizona 413 + 3.8 California 3,290 - 2.1 Colorado 347 + 8.1 Idaho 1,264 + 1.9 New Mexico 696 + 9.8 Oregon 213 - 3.2 Utah 190 + 6.1 Washington 546 - 1.3 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- home