Milk production continues to trend higher in California, though some contacts report that output remains down year over year. Labor shortages are preventing some production facilities for utilizing additional volumes of milk, and plant managers say that they are selling spot loads of milk to nearby states with lighter milk production. Some processors say that purchasers from further away states are interested in milk loads, but that a shortage of available tankers and truck drivers is preventing them from fulfilling these orders. Across all Classes, demand is steady.
Milk production continues to decline in Arizona, as higher temperatures are reducing cow comfort. Contacts say that they are pulling in milk volumes from other nearby states, to aid in meeting current production demands. Demand for Class I is steady, while Class II demand is trending higher.
Farm level milk output is steady in New Mexico. Milk producers say that volumes are down compared to this time last year. Some processing plants in the state are, reportedly, running below capacity due to labor shortages. Plant managers say that they are selling loads of milk to nearby states with tighter milk availability. Class I and II demands are steady.
Milk production is steady in the Pacific Northwest. Contacts report that year to date milk output is in line with previously forecasted levels. Milk is available in the area, and production facilities are running busy schedules. Some plant managers say that labor shortages are contributing to unplanned down time this week. Demand is steady across all Classes.
Milk production is uneven in the mountain states of Idaho, Utah, and Colorado. Labor shortages are causing unplanned down time at some production facilities. Stakeholders say that milk is available in the area, and that spot loads are being sold from $3 to $6 under Class IV. Some stakeholders are, reportedly, moving loads of milk to other parts of the country with tighter supplies. Class I and III demand is unchanged.
Demand for condensed skim is strong in the West, though some stakeholders say that limited tanker availability is making it difficult to move loads. Contracts for condensed skim are steady. Cream inventories are available, regionally, to meet production needs. Stakeholders say that demand for cream is strong. Contacts report that ice cream and butter makers are running busy schedules to build inventories for the coming months. Western cream multiples are unchanged at the bottom, but the top moved lower.
Western U.S., F.O.B. Cream
Multiples Range - All Classes: 1.0000 - 1.2800
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