California milk production is decreasing. Spot loads are said to be limited. Some processors report that hauling constraints have resulted in milk shorting on recent orders. Class I demand is higher. Class II and III orders are steady.
Milk availability is tightening in Arizona as output drops and demand increases. Bottling sales are strong. Demand from Class II- and Class III-based dairy manufacturers is level.
Following a week of more cow-friendly weather, milk supplies are steady in New Mexico. Class I sales are higher, and Class II demand is seeing an uptick as well. Balancing is active, but not stressed. Widespread driver shortages and some receiving bottlenecks at plants have led to some missed orders. The missed loads, however, were able to be rerouted to balancing plants with available processing capacity.
Pacific Northwest milk output is declining. More milk is being diverted into Class I as bottling demand grows. Class II demand is steady to lower. Class III orders are steady to higher, with some cheesemakers maxing out production.
Farm level milk production is decreasing in the mountain states of Idaho, Utah, and Colorado. Handlers say Idaho spot milk, which was ubiquitous and discounted as recently as last week, is no longer available. School orders are pushing Class I demand higher. Class II and III sales are steady.
Contracted condensed skim is steady. Cream is less available as milk supply drops. However, contacts report that pervasive hauler issues and staffing shortages at plants are having an impact on cream consumption; the current cream supply would be tighter if processing facilities were able to operate at capacity. The cream multiples range narrowed this week.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.1400 - 1.2700
Information for the period August 23 - 27, 2021, issued weekly
Secondary Sourced Information:
CALIFORNIA MARKET ORDER
Milk pooled on the California Order 51 totaled 1.840 billion pounds in July 2021. Class I utilization was 381.6 million pounds and accounted for about 20.7 percent of producer milk. The Statistical Uniform Price for milk delivered to plants in Los Angeles County, CA was $16.94, down $0.36 from June 2021, but $2.22 above the same month a year ago.
