Farm level milk output is steady to higher in California; contacts report that warm weather in recent weeks has been contributing to increased cow comfort. Labor shortages are causing some processing facilities in the state to run below capacity. Demand for Class I demand is steady to lower, as some educational facilities are on break this week. Class II demand is unchanged.
Milk producers in Arizona report that production is increasing. Some producers in the region say that production is below previously forecasted levels. This coincides with the January NASS Milk Production report, released on Wednesday, which showed that Arizona milk production decline by 3.5 percent year over year. Stakeholders say that milk continues to be available, but that some processing plants are running below capacity due to a shortage of available truck drivers. Across all Classes, demand is unchanged.
New Mexico milk production showed the largest percentage year over year decline, 12.1 percent, in the January NASS Milk Production report. In contrast, producers in the state say that farm level milk production is trending higher this week. Processing facilities are able to find milk supplies to meet current market needs, but some report that staffing shortages are reducing their ability to run at or near capacity. Demand is steady across all Classes.
Pacific Northwest milk production is steady to lower, as contacts report that extreme weather over the holiday weekend has begun to negatively impact cow comfort. Shipping delays caused by a shortage of truck drivers in the area have been exacerbated by this weather. These delays have caused some unplanned downtime at processing plants in the Pacific Northwest. Class I demand is trending lower as classes at some large school districts are out this week.
The mountain states of Idaho, Utah, and Colorado also experienced some extreme weather throughout this past weekend. Producers say that this is also having a negative impact on milk production. Contacts report that bad weather in the area is causing delays to the delivery of production supplies. Plant managers say that delayed deliveries of production supplies and labor shortages are causing them to run below capacity. Demand is steady to lower across all Classes.
Contacts report that Western condensed skim contracts are unchanged this week. Interest in spot loads of condensed skim from purchasers in Mexico have begun to dry up. Demand for cream is steady. Contacts report that cream inventories are beginning to tighten in the region. Bad weather, in parts of the region, and a shortage of truck drivers are delaying cream loads. Some plant managers say that they are unable to procure the necessary supplies for production due to these delays. Western cream multiples are steady.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0000 - 1.2800
Information for the period February 21 - 25, 2022, issued weekly
Secondary Sourced Information:
January 2022 Milk Production, (USDA-NASS)
(Million Pounds) % Change From
1 Year Ago
Arizona 417 - 3.5
California 3535 - 1.9
Colorado 443 - 1.6
Idaho 1366 + 0.6
New Mexico 634 - 12.1
Oregon 217 - 1.4
Utah 182 - 2.7
Washington 526 - 7.1
