Farm level milk production is steady to higher in California. Stakeholders say that milk is available in the state, but that labor issues are preventing some production facilities from processing greater volumes. Meanwhile, limited tanker availability and a shortage of truck drivers are preventing some contacts from moving loads of milk out of state. These factors, combined with some unplanned downtime at plants, are causing some processors to sell loads of milk at a discount. Steady demand is present across all Classes.
Milk production has declined in Arizona, as the state has experienced warmer weather in recent weeks. Contacts say that milk output is down when compared to this time last year. Plant managers report that they are sourcing milk from other nearby states to fulfill production needs. Class I demand is steady, while Class III demand is trending higher.
In New Mexico farm level milk production is unchanged this week. Unplanned down time at some plants has caused more loads of milk to become available. Plant managers report that local balancing operations can process some of these loads, while other loads are being moved to nearby states with tighter milk availability. Demand for Class I milk has declined this week, while Class II demand is steady.
Cold and wet weather is, reportedly, having a negative impact on cow comfort in the Pacific Northwest. This has contributed to a decline in milk production. Stakeholders say that processing facilities in the area are running busy schedules to work through available milk supplies. Class I demand is unchanged. Class III demand is steady to higher.
Milk production is picking up in the mountain states of Idaho, Utah, and Colorado, following seasonal trends. Some producers say that they are actively selling spot loads of milk, as volumes are plentiful in the area. Plant managers say that labor shortages are preventing them from processing greater volumes of milk. Contacts report that they are moving loads of milk to different parts of the region, where supplies are tighter. Demand is steady across all Classes.
Regional condensed skim contracts are steady. Limited tanker availability has made it difficult for some sellers to move loads of condensed skim. Following the spring holiday weekend, cream demand softened, in the West. Interest from cream purchasers in other regions is declining. High transportation costs are causing some purchasers to only seek loads of cream available locally. Western cream multiples moved higher at the top, while the bottom is unchanged.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0000 - 1.3000
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