MD_DA210                                                                                  
DA                                                                                        
MD DA210 Fluid Milk and Cream Review - East                                               

MADISON, WI.  February 03, 2010 (REPORT 5)                                                

EAST FLUID MILK AND CREAM REVIEW                                                          
                                                                                          
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 - 1.7237-1.7927                                    

PRICES OF CONDENSED SKIM, DOLLARS PER LB. SOLIDS, F.O.B. PRODUCING PLANTS:                
Northeast - Class II - includes monthly formula prices - 1.30-1.37                       
Northeast - Class III - spot prices - 1.26-1.30                                          

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   110     0    27     0   166                                  
SOUTHEAST STATES         0     0     0     0     0     0                                  

    

Storms had an impact on milk movement and use last week into this week 
in many parts of the region.  A large Southeastern storm that generated 
increased last minute bottled milk orders late last week, did not 
generate the level of expected retail sales in some areas.  This 
resulted in the need to shift milk back into manufacturing over the 
weekend.  Early this week, there was another uptick in expected orders 
for bottled milk as another storm, a Nor'easter, formed.  Middle 
Atlantic plants earlier this week began pulling more milk for bottling 
in anticipation of the Nor'easter, which had begun by mid-week.  The 
storm aside, slightly less milk than normal for this time of year has 
been received at regional plants, resulting in a higher percentage 
going to bottling and less to drying.  In the Southeast, storm related 
order volatility has prevailed since mid last week.  In some cases, 
noticeably increased retail fluid milk orders placed or anticipated by 
mid last week, had been reduced later in the week.  This resulted in a 
number of diversions of incoming milk for processing to plants 
throughout the region.  Milk from Kentucky that would normally have 
moved into other states, was left in Kentucky due to inability of 
intended plants to receive it, or the inability of tankers to navigate 
storm closed roads.  In several rural areas of the Southeast, trucks 
were unable to reach farms to pick-up milk for several days.  Some 
schools in the region closed last Friday and remain closed as of mid 
this week.  The situation was further complicated by several plants 
being temporarily closed due to weather, one such plant being in a 
valley and finding that trucks were unable to drive up hill to move 
milk out so-as-to make room for incoming milk.  In other cases, tankers 
were stalled on roads closed for between 18 and 24 hours.  Storms did 
not greatly affect the Northeast last week, but the prevailing 
situation is mixed.  Some plants report that there is more milk in the 
processing system than recent weeks.  This is partly due to slightly 
increased production and also due to slightly less overall retail sales 
of fluid milk.  In other pockets of the region, milk volumes are steady 
with "not much" extra volume.  In Florida, production is slightly up 
seasonally as the state rebounds from unusually cold weather several 
weeks ago.  There is very little spot interest in condensed skim.  
Cream sales are generally slow overall although, there are the normal 
pockets of increased activity in parts of the Northeast.  Multiples 
have narrowed and declined since last week, generally ranging from the 
high mid 120's to very low 130's.  Yogurt production continues to 
increase.  NASS reports that plain and flavored yogurt production for 
December was up 12.9% from November, to 297 million pounds, which was 
3.5% over December 2008 production.  Cumulative production for 2009 was 
3.8 billion pounds, 6.9% greater than 2008.  Conversely, national 
regular hard ice cream production in December, 49.9 million pounds, was 
7.8% below November and 7.1% below December 2008.  Cumulative 2009 
regular and hard ice cream production was down 2.2% from 2008, to 861.5 
million pounds.  The Atlantic Region produced 25.6% of the nation's ice 
cream in December.  Of the 4 regional separately reported states for 
December 2009 production compared with December 2008, 3 were up and 1 
was down.   Pennsylvania with 2.6 million pounds, was up 8.6%; New York 
with 2.4 million pounds, was up 5.1%; North Carolina with just over 1 
million pounds, was up 2.4%; and and Tennessee with 401,000 pounds, was 
down 31.6%.  

100c Eric K. Graf eric.graf@ams.usda.gov