Farm level milk production is increasing, seasonally, in California. Contacts report that there is plenty of milk available, but that some processing plants are unable to handle extra loads due to labor shortages. Some contacts report selling milk out of state at a discount to offset increased freight costs. Class I and II demand is unchanged.
In Arizona milk production is trending higher, as processors are running busy schedules to utilize available supplies. Contacts report that they are unable to take in additional loads of milk being offered by out of state sellers; internal supplies are meeting their current production needs. Demand is steady across all Classes.
New Mexico milk production is increasing, following seasonal trends. Milk is available in the state and some contacts report moving loads to other states to assist with local production needs. Class I demand is unchanged, while Class II demand is trending higher.
In the Pacific Northwest milk production is picking up. Stakeholders say that milk inventories are available, but not excessive. Some processors report that labor shortages are preventing them from running at capacity. Class I demand is steady, while Class IV demand is trending higher.
Farm level milk production is trending higher in the mountain states of Idaho, Utah, and Colorado. Milk is available in the area. Some production facilities are running below capacity due to labor shortages and delayed deliveries of production supplies. Steady demand is present across all Classes.
Contracts for condensed skim are unchanged, in the West. Demand for cream is trending higher, as inventories are tightening. Stakeholders say that butter and ice cream makers are increasing their production as spring is approaching. Plant managers report that the shortage of truck drivers in the region is limiting their ability to move loads of cream further distances. Western cream multiples have moved higher at the bottom, while the top has held firm.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0500 - 1.2800
