Canadian Dairy Breeding Female Imports

Even acknowledging the time established cycle of declining summer milk production, the sense throughout the region is that currently there is somewhat more milk availability than might be expected at this time of year. Suggestions as to reasons include: somewhat softer Class I demand; weather in many areas that has not reached typical seasonal heat/humidity extremes; and possibly, some farmers keeping more cows producing in response to prices.

NORTHEAST plant managers report continuing heavy supplies of milk. This factor, coupled with some plant down time for scheduled maintenance last week, and anticipated maintenance down time at other plants next week, has kept and is expected to keep plants very busy handling the volume.

MIDDLE ATLANTIC milk supplies are strong. This fact, coupled with handling some milk from Southern states, has kept Middle Atlantic plant capacity engaged. A plant official observed that 2008 is shaping up to be a strong year for milk production.

Portions of the SOUTHEAST have been atypically cooler and less humid than normal July weather. This has contributed to milk production not declining as much as in many prior years.

FLORIDA heat and humidity are causing production declines within normal summer parameters, unlike many areas north in the region. This has led to a decline in shipments leaving the state and is expected to further reduce shipments in the weeks ahead.

CONDENSED SKIM continues to be produced primarily for contracts although, spots are available. Many plants with the option, are electing to manufacture NDM.

CREAM is available on the spot market but spot prices vary throughout the region.

In some areas they remain high enough that some plants with the option of deferring churning which requires spot cream purchases, are still electing to wait. The volume of milk availability, coupled with less urgency in securing supplies for ice cream, have been factors in somewhat maintaining prices slightly down from peaks of several weeks ago.

Ice cream production continues to be strong, but with the factor of existing inventories as well as now being nearly 2 weeks past the 4th, moving well into July, the intensity of obtaining cream for ice cream has moderated a bit. Eric K. Graf 608.250.3203

CALIFORNIA milk output declined last week and into early this week due to the hot weather. The widespread conditions affected most of the major milk producing regions of the state. Milk production was down with early reports showing milk was off 5-8% for several major handlers. Temperatures moderated this week and milk intakes had leveled off and were, in instances, beginning to recover. Fat and protein levels were also affected by the heat and finished product yields were lower. Class 1 sales are mostly level and not doing much at retail.

ARIZONA milk output is dropping seasonally due to hot and humid weather conditions impacting the milking herds. Heat abatement measures such as misting do not work as well in humid conditions. Processing plants in the state remain full as milk is offered from nearby states. Recent, flat trends in the sales of fluid milk products continue to be the norm for local accounts.

NEW MEXICO milk production is noted to be following recent trends lower, along expected seasonal patterns. Rains have fallen, having more of an impact on haying than on cows. The cost of hay continues to rise for current crops.

CREAM markets are holding mostly steady this week. There were some expectations that cream supplies would tighten following the July 4th holiday and because of hot weather, but that has not happened. Cream offerings were adequate for all higher class demand and still available to butter producers.

Ice cream production is seasonally active, but not pulling as much as expected. The CME Grade AA price moved slightly higher last week, before retreating early this week and closed at $1.5300 on Wednesday, July 16, unchanged from a week ago. Cream multiples are higher and range from 120 - 142, and vary depending on class usage and basing points.

Milk production in the PACIFIC NORTHWEST is steady to lower. In WASHINGTON, milk output is declining from the seasonal peak noted in early July. Milk and components are available from regional processors. Hot weather over eastern Oregon was impacting cows' milk output. Dairy operators are spending time assembling affordable and workable cow rations as hay and feed costs remain high. The big concern is the availability of hay and whether there will be enough for the year.

Heifer prices remain high with a local sales barn reporting average prices around $2400.

Milk output remains strong for UTAH and IDAHO. Heat in Utah is lowering milk output there. Processing plants continue to run on extended schedules to handle the heavy milk supply and milk is offered out to help alleviate the stress on plants. The opening of a new Idaho drying plant later this month will take some pressure off.

Butch.Speth@usda.gov 608.250.3202