MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW ? WEST

Madison, WI August 31, 2017 (REPORT 35)

Farm milk output is steady this week in California. Milk volumes into 
manufacturing plants are sufficient to meet processing needs. Bottled 
milk demand from schools is unchanged from last week. Milk requests 
from restaurant and grocery stores are even. Milkfat components 
continue to be steady at lower levels. According to CDFA, July 2017 
Class 1 sales in California totaled 47.9 million gallons, down 1.8 
percent from last month, and down 3.3 percent from the previous year. 
From January through July 2017, Class 1 sales totaled 358.3 million 
gallons, down 3.4 percent from the comparable period in 2016. Milk 
production in Arizona is steady. Last week, temperatures were above 
normal in many parts of the state. The monsoon season has been mild 
compared to previous years. Handlers report heavier milk intakes from 
retail stores. Demand for Class I is steady due to schools' pipelines 
being full. Demand for Class II remains strong. With the upcoming 
Labor Day holiday, manufacturers expect milk and cream to be 
redistributed differently as some processing plants as well as 
schools will be closed. This week, topsoil and subsoil moistures are 
one hundred percent adequate. Sixty percent of alfalfa hay is rated 
good to excellent and about three quarters of alfalfa acreage is 
being harvested across the state. In New Mexico, milk production is 
steady to slightly lower this week. Class I demand from educational 
institutions is up as they fill their pipelines for the new school 
year. Bottled milk requests from retailers and food service are even. 
Demand from ice cream manufacturers is trending slightly down. Class 
III intakes increased although some plants were down for 
repair/maintenance works. Industry contacts report that some 
processing plants in New Mexico might have to take extra loads of 
milk to help the plants affects by Hurricane Harvey in Texas. Milk is 
flowing in the Pacific Northwest as planned. Industry contacts say 
milk intakes are in balance with processing needs. Bottling demand is 
picking up as remaining schools begin fall terms. Hot weather is 
building into the region for the holiday weekend, but cooler nights 
should allow the cows to recharge. Milk production in the mountain 
states of Idaho, Utah and Colorado is steady. Heavy volumes of milk 
in Idaho are still searching out homes within the region and there 
are discounted loads of milk available. The holiday weekend may 
complicate things a little for milk handlers as some processors would 
prefer to slow their intakes, even in the face of strong supplies. 
Contacts report that sales of condensed skim into Class III 
production is strong. Ice cream manufacturers continue a steady 
intake of condensed skim. Cream sales for Class II and IV processing 
are active in the West. Some processors said that they might be 
moving additional cream loads into Texas next week as in some parts 
of Texas, they are running a bit short of cream due to the Hurricane 
Harvey. Although cream is slightly firming, it is still easy to find 
in most regions. Cream multiples for all usages are 1.06-1.26. 
According to the DMN National Retail Report-Dairy for the week of 
August 25-31, the national weighted average advertised price for one 
gallon of milk is $2.36, up $0.12 from last week, but $0.01 lower 
from a year ago. The weighted average regional price in the Southwest 
is $2.56, with a price range of $2.39-$2.69. The weighted average 
regional price in the Northwest is $1.69, with no price range 
reported. According to California Department of Food and Agriculture, 
July 2017 pool receipts of milk in the state total 3.19 billion 
pounds. This is 1.3 percent lower compared to the same month a year 
ago. From January through July 2017, receipts are 2.8 percent lower 
from the comparable period in 2016. The Value at Test price is 
$16.36, $0.11 lower than the previous month, but $1.54 above a year 
ago. The percentage of receipts used in Class 1 products is 12.29 
percent. The July quota price is $17.12 and the over quota price is 
$15.42. These prices are $0.04 above last month, and $1.46 higher 
from a year ago.

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