In California milk production is increasing, following seasonal trends. Loads of milk are available at a discount due to unplanned down time. Contacts report that there is limited availability at production facilities due to labor shortages and that limited tanker availability is prohibiting their ability to move loads out of state. Demand is steady across Classes.
Contacts report that milk production in Arizona is increasing, but that output remains below 2021 levels. Some processors report that they are no longer utilizing milk from outside of the state, as supplies are available locally. Demand for Class I milk is steady to higher as some larger educational facilities are returning from spring break. Demand for Class IV is steady.
In New Mexico farm level milk production is trending higher, though contacts report that production is down year over year. Milk is available in the state to meet current demands. Demand for Class I milk is steady to lower as spring break season has decreased educational institution purchasing. Demand for Class II is steady.
Pacific Northwest milk production is increasing, following seasonal trends. Class I demand is lower as some educational institutions have adjourned for spring break. Balancing operations in the area are, reportedly, able to process these additional loads of milk. Class II and III demand is steady.
Increased milk production in the mountain states of Idaho, Utah, and Colorado is contributing to greater spot availability. Some stakeholders in the area report that loads of milk are being sold from $3 to $5 under Class IV. Plant managers say that they are unable to run at capacity due to labor shortages. Across all Classes, demand is unchanged.
Condensed skim contracts are steady, in the West. Ice cream makers are scooping up more loads of cream as they increase production in preparation for warmer weather. Demand for cream is strong, and stakeholders say that spot inventories are tightening. Cream multiples are unchanged at the bottom, while the top moved higher.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0500 - 1.3000
