Seasonally warmer weather is increasing cow comfort levels in California. With increased cow comfort, in the state, producers say that milk output is increasing. Some processing facilities are running below capacity due to labor shortages. Plant managers say that these labor shortages are limiting their ability to take additional loads of milk. Demand for Class II has declined, while Class I demand is unchanged.
Producers in Arizona say that farm level milk production is trending higher, but that milk output is down year over year. Transportation delays are causing some processing plants in the state to run below capacity, while milk continues to be available. Demand is steady to higher across all Classes.
Milk production is increasing in New Mexico, as some producers say they are sending loads to other regions to help meet demand. Contacts report that milk is available for production. Some loads are facing delays due to staffing shortages and an ongoing shortage of truck drivers. Class II demand is steady, while Class I demand is trending higher.
Warmer weather in the Pacific Northwest is contributing to higher milk production. Contacts report that the number of truck drivers and tankers in the area are limited, reducing their ability to send milk to potential purchasers in other parts of the West. These shortages are also delaying the delivery of milk to some processing facilities. Some plant managers say that these delays, combined with labor shortages, are causing them to run below capacity. Demand is steady across all Classes.
As in other parts of the West, milk production is increasing in the mountain states of Idaho, Utah, and Colorado. Farm level milk production in the area is, reportedly, down year over year. Some plant managers say that they have some space to take on additional loads of milk, but that they are limiting their purchasing as labor shortages are causing them to run reduced schedules. Demand is steady across all Classes.
Condensed skim contracts are steady throughout the region. Contacts say that there is some interest in loads of condensed skim from purchasers in the Midwest and Mexico. Stakeholders say that they are having some difficulty moving loads of condensed skim to these areas, due to a shortage of available truck drivers. The shortage of available truck drivers in the region is also affecting loads of cream. Cream inventories are available to meet steady demand. Western cream multiples moved higher at the top of the range, while the bottom is unchanged.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0000 - 1.2800
