Throughout California milk output is mixed. High temperatures in some parts of the state are having a negative impact on production, while contacts in some areas say milk output is steady. The NASS Milk Production report released on August 22 showed July production was up by 2.2 percent from 2021. Milk is available for processing in the state, and some stakeholders say they are moving additional loads of milk to other states where supplies are tighter. Class I demand is trending higher, while demands for Class II and III are unchanged.
In Arizona high temperatures continue to have a negative impact on milk production. Some milk processors in the state say local volumes are sufficient to meet production needs, while others are bringing loads from nearby states. Demand for Class I is trending higher due to increased educational purchasing. Meanwhile, demands for Class II and III are unchanged.
Milk production is steady to lower in New Mexico. The NASS Milk Production report released data on August 22 showing that July milk output was down in New Mexico by 8.1 percent from last year. Processors in the plant are bringing loads of milk in from other parts of the region to meet current production needs. Demand is steady across all Classes.
High temperatures in the Pacific Northwest are contributing to a continued decline in milk output. Contacts report milk production is below previously forecasted levels. Despite this, processors can obtain milk locally to meet their production needs. Some plant managers say they are running reduced production schedules due to labor shortages. Contacts report these reduced schedules are contributing to increased milk availability. Across all Classes, demand is unchanged.
Milk production is declining in the mountain states of Idaho, Utah, and Colorado. Contacts say seasonally high temperatures are reducing cow comfort and having a negative impact on milk output. Milk volumes are available for processing. Milk is being sold at a discount in the area; some plant managers say this is due to labor shortages and limited tanker availability. Increased educational purchasing is contributing to higher Class I demand. Meanwhile, demands for Classes II and III are unchanged.
Demand for condensed skim is strong. Contacts say contract purchasers are pulling near the higher ends of their availability. Ice cream makers are purchasing condensed skim and cream to run busy production schedules. Cream inventories are tightening amid strong demand and declining cream production. High cream multiples and labor shortages have caused some butter makers in the region to sell additional loads of cream in recent weeks. Cream multiples are unchanged in the West.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 3.2632 - 4.3311
Multiples Range - All Classes: 1.1000 - 1.4600
Price Range - Class II; $/LB Butterfat: 3.8565 - 4.3311
Multiples Range - Class II: 1.3000 - 1.4600
