Milk production is increasing, though contacts report that production is flat when compared to this time last year. Unplanned downtime and labor shortages are causing some production facilities in the area to sell available loads of milk at a discount. Contacts report that the truck driver shortage is limiting their ability to move loads of milk. Steady demand is present for Class I and II.
Arizona milk production is trending higher, seasonally. Milk is available, and some processors in the state say that they are taking in additional loads from nearby states to satisfy current production demand. Class I demand is steady to lower, as some educational facilities are on spring break. Demand for Class IV is unchanged.
Milk production is increasing in New Mexico, but down year over year. Plant managers say that milk is available to meet current production demand. Bottling demand has declined as spring break season has begun for some educational institutions. Class II demand is steady.
Milk production is increasing in the Pacific Northwest, though some producers say that output is below previously forecasted levels. Some educational institutions in the area are closed for spring break in the coming weeks, decreasing bottling demand. Contacts report that they are rerouting milk loads to balancing plants in the area. Labor shortages continue to prevent processing plants from running at capacity. Class IV demand is steady.
In the mountain states of Idaho, Utah, and Colorado, milk production is increasing seasonally. Milk is available, but some producers report that the shortage of truck drivers is limiting their ability to move loads outside of the local area. Demand is steady across all Classes.
Contacts report that condensed skim contracts are steady. Cream demand is strengthening in the West. Stakeholders say that ice cream makers are purchasing more cream as they are increasing production in preparation for warmer weather. Cream availability is tightening in the region. Butter makers report that they are running busy schedules and using available loads of cream internally rather than selling spot loads. Cream multiples are unchanged at the top, while the bottom moved higher.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0500 - 1.2800
