MD_DA240
DA
MD DA240 FLUID MILK AND CREAM REVIEW - WEST

Madison, WI November 24, 2009
For the week of November 23-27, 2009 (REPORT 47)

WEST FLUID MILK 

According to the NASS Milk Production report released 
last week, production per cow in October for the 
Surveyed States was 1,721 pounds, up 21 pounds or 1.2% 
from a year earlier.  Change in production per cow for 
selected Western states is as follows:  Arizona +0.3%, 
California -1.1%, Colorado +2.1%, Idaho n/c, New Mexico 
+5.2%, Oregon +0.6%, Utah +0.8%, and Washington +1.0%.  
Cow numbers in these eight states declined 145,000 head 
from last year and October milk output in every state 
was below last year.  CALIFORNIA milk output is holding 
mostly steady to slightly higher in limited areas.  
Weather conditions remain favorable to cow comfort.  
Feeding conditions are fair to good with quality 
favorable and the biggest factor being costs in the 
current milk pricing environment.  State processors are 
expecting no issues handling the milk supplies or 
components over the extended holiday weekend.  News 
reports indicate an out of state plant supplying Class 1 
milk into California has closed.  ARIZONA milk 
production is steady to lower, reflecting some loses to 
sellouts and/or the CWT program.  At the farm level, 
milk output is mainly steady and not moving upwards yet.  
Processors would like more milk to supply contracted 
milk to other processors and keep up with finished 
product orders.  Little, if any, outside milk will be 
available.  Class I sales are fair to good with retail 
movements improved ahead of the holiday.  NEW MEXICO 
milk production is flat with recent weeks.  Processors 
are expecting extra milk over the weekend, but have 
capacity to handle whatever moves their way.  Conditions 
are neutral for milk cows in the state and very few 
changes in farm level milk output have take place.  
CREAM prices are generally stead in the holiday 
shortened week.  Multiples and overages are expected to 
be lower later in the week as more cream becomes 
available.  Many plants making higher class items are 
taking down times over the holiday and this is creating 
more cream movements towards butter plants.  CME Group 
prices closed at $1.5250 on Tuesday, November 24, 
unchanged from a week earlier.  Cream multiples are 
unchanged at 118-145 FOB and vary depending on class 
usage and basing points.  Continued wet and cool weather 
is expected in the PACIFIC NORTHWEST.  Travel through 
mountain passes is a problem at times due to snow and 
slippery conditions.  Plants are anticipating no 
problems handling milk over the holiday weekend.  Dairy 
producers continue to work on acquiring hay supplies for 
winter needs.  Good stocks of dairy quality are 
available.  Cold and snow continue to be common over 
parts of UTAH and IDAHO.  Dairies continue to shop for 
and acquire hay for winter needs.  Prices are mostly 
$60-70 less than last year at this time.  Offerings of 
dairy hay are available.  Some cheese plants in the 
region are looking at the possibility of acquiring 
additional supplies of milk after the first of the year.  
Some powder plants continue to run on less than ideal 
quantities of milk and some of them don't expect much 
relief in the short run.  Prices at one bi-weekly heifer 
sale are the lowest noted in at least six years.  Prices 
are fast approaching only $1000 per head, down $275 in 
just the last few weeks.

1410CT 
Butch.Speth@ams.usda.gov 608.250.3202
Donaldo.nelson@ams.usda.gov 608.250.3206