MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  July 02, 2008 (REPORT 27)                                                   

EAST FLUID MILK AND CREAM REVIEW                                                          

Throughout the region, there are reports of plenty of milk availability. This 
will present further challenges because some Class II plants which had recently 
been operating at high production levels, plan to stop operating over the 
holiday weekend. NORTHEAST milk supplies are quite ample, with some plants also 
being offered milk from other areas of the region. One plant operator said that 
there is almost too much milk available. MIDDLE ATLANTIC plants have ample to 
very heavy supplies of milk available. This is expected to last at least through 
next week. Some available cream is actively being offered to varied plants 
before buyers can be found. In the SOUTHEAST, dry conditions in some parts of 
the region have strained milk production locally. However, milk availability 
from surrounding areas has resulted in ample milk for demand. In FLORIDA, the 
reduction in fluid demand has meshed with available milk production to result in 
adequate supplies for the week. CONDENSED SKIM production for existing contracts 
continues, with little spot market activity or interest. CREAM availability 
eased this week. Factors cited include more milk availability due to virtually 
all schools now being closed, as well as an easing of Class II demand. Many ice 
cream and dip manufacturers have been manufacturing heavily in recent weeks 
building inventory for anticipated Fourth of July holiday demand. Reports are 
that inventory is now considered adequate to meet holiday demand, so some 
manufacturers plan to close plants and not to produce ice cream over the long 
weekend. They are expected to assess the situation after the holiday and likely 
resume production, which will again create competition for cream.
                                                                                          
FLUID CREAM AND CONDENSED SKIM PRICES IN TANKLOT QUANTITIES:                              
SPOT PRICES OF CLASS II CREAM, DOLLARS PER LB. BUTTERFAT:                                 
  F.O.B. producing plants:  Northeast -  2.0063-2.1441                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS:                
Northeast - Class II - includes monthly formula prices -  1.40-1.46                   
Northeast - Class III - spot prices -  1.74-1.88                                      

SPOT SHIPMENTS OF GRADE A MILK INTO OR OUT OF FLORIDA                                     
AND OTHER SOUTHEASTERN STATES                                                             
                                                                                          
                        THIS WEEK   LAST WEEK   LAST YEAR                                 
                        IN    OUT   IN    OUT   IN    OUT                                 
                                                                                          
FLORIDA                  0   154     0   157     0   192                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  



100C Eric Graf 608-250-3203