California milk production is steady, following seasonal trends. The California Crop Progress report from NASS for April 11, 2022, relays that wheat and alfalfa are doing well, while alfalfa crops are being cut and baled in the state. Some stakeholders report that tanker availability is tight and that they are having some difficulty finding trucks available to move loads of milk out of state. Labor shortages and some unplanned downtime are causing some production facilities to sell milk at a discount. Demand is steady across all Classes.
Warmer weather in Arizona has contributed to a decline in milk production this week. Some plant managers report that they are pulling in milk from out of state to fulfill local production demand. Stakeholders say that high transportation costs are limiting their ability to purchase affordable loads of milk from other states. The April 11,2022 Arizona Crop Progress report from NASS showed that harvest is taking place on over three-quarters of alfalfa producing acreage. Demand for Class III is strengthening, while Class I demand is steady.
Milk production in New Mexico is steady; some contacts believe that production may be approaching its seasonal peak. Milk is available in the state to meet current production needs. Some producers report that they are sending loads to nearby states and other regions with tighter milk availability. Class I demand is steady to higher, while Class II demand is steady.
Milk production in the Pacific Northwest, is steady to higher this week. Contacts report that milk production is flat compared to last year. Class I demand is trending higher as educational institutions in the area have reconvened following spring break. Demand for Class II and Class III are steady.
Warmer weather in the mountain states of Idaho, Utah, and Colorado is contributing to increased farm level milk production. Spot milk continues to be available for producers in the area. Contacts report that some purchasers in other parts of the West are interested in purchasing available milk supplies, but a shortage of tankers is limiting the ability to move larger volumes of milk further away. Labor shortages are causing some plant managers to run below capacity in the area. Across all Classes demand is steady.
Contracts for condensed skim are steady in the West. Contacts report that condensed skim is available, but that available tankers are limited, making it difficult for sellers to move loads. Demand for cream is strong in the region. Cream cheese and ice cream producers are purchasing loads of cream as they ramp up production in preparation for warmer weather. Butter makers are also busy utilizing cream to build inventories. Spot purchasers say that cream loads are available. Some purchasers from other regions, where cream inventories are tighter, are looking to the West to meet current market demands. Western cream multiples moved lower this week.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0000 - 1.2800
