Fluid Milk and Cream - Western U.S. Report 14

Milk production is steady to higher in California. Contacts report that milk production is     flat compared to this time last year. Limited tanker availability is prohibiting     stakeholders from moving loads of milk to other states. Some production facilities in the     area are, reportedly, selling loads of milk at a discount due to labor shortages and     unplanned down time. Steady demand is present across all Classes. 

Farm level milk production is trending higher in Arizona, though contacts report that output is down compared to this time last year. Milk is available for processing in the state, and some plant managers report that they are no longer using milk produced in other states. Demand for both Class I and Class IV are steady. 

New Mexico milk production is increasing, following seasonal trends. Processors in the state say that milk is available to meet current production demand. Class I demand is steady to lower, as some educational institutions are closed for spring break. Class II demand is steady. 

In the Pacific Northwest, farm level milk production is trending higher. Spring break at some educational institutions in the area has contributed to decreased Class I demand. Loads of milk that have become available due to this are being processed at balancing operations in the area. Demand is steady for Class II and III. 

In the mountain states of Idaho, Utah, and Colorado, weather favorable to milk production is increasing cow comfort and contributing to higher milk production. Stakeholders say that spot milk is available and that some loads are being sold from $2 to $5 under Class IV. Some processing facilities in the area are running below capacity, due to labor shortages. Demand is steady across all Classes. 

In the West, contracts for condensed skim are steady. Demand for cream is strengthening, as ice cream and butter makers are running seasonally active schedules. Cream inventories are available to meet current production needs. Stakeholders say that some purchasers from other regions, where inventories are tighter, have expressed interest in purchasing loads of cream from the West. Western cream multiples have moved higher at the bottom, while the top is unchanged.

     Western U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.1000 - 1.3000