In California milk production is trending higher. Milk is available, but labor shortages are preventing some processing plants in the state from taking in additional loads. These additional loads are, reportedly, being sold at a discount to some customers in nearby states. Educational facilities in some parts of the state have spring break scheduled in the coming weeks, reducing demand for Class I. Class II demand is steady.
Milk producers in Arizona say that production is increasing but is down compared to a year ago. Some plant managers report that they are taking in loads of milk from nearby states to meet current production needs. Bottling demand is declining as spring break has caused some reduced milk purchasing from educational institutions. Demand for Class IV milk is steady.
Farm level milk production is trending higher in New Mexico. Producers in the state say that milk output is down year over year, but that milk is available in the state to meet production demands. Class I demand is steady, while Class II demand is increasing.
Warmer weather in the Pacific Northwest is increasing cow comfort and milk production. Milk is available for production in the area, but some stakeholders say that labor shortages are preventing them from purchasing additional loads. Demand for Class I milk is steady, while Class IV demand is strengthening.
Milk production has continued to pick up in the mountain states of Idaho, Utah, and Colorado, though some contacts report that output is below previously forecasted levels. Stakeholders say that milk is available, but that inventories are not excessive. A shortage of truck drivers and labor shortages are causing some production facilities in the area to run below capacity. Demand is steady across all Classes.
In the West, condensed skim contracts are steady. Cream availability is tightening in the region. Demand for cream is increasing as ice cream producers are ramping up production in preparation for spring. Some butter makers are utilizing cream loads internally, to build butter inventories, rather than selling on the spot market. The regional shortage of truck drivers is limiting the ability of some stakeholders to move loads further distances. This has caused some cream sellers to accept lower multiples from nearby purchasers. Western cream multiples moved lower at the bottom, while the top held steady.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0000 - 1.2800
