Farm level milk output is mixed in California. Some stakeholders report production is steady, with an uptick over the previous week, as paddocks have had time to dry up from the heavy rains California received to start 2023. Some stakeholders report production is steady to higher with the heavy rainfall not affecting cow comfort. Volumes of available milk is also reported as mixed this week. Milk supplies in the Central Valley have tightened up with limited availability over this past week. However, milk availability was strong in the rest of the state this past week. Some stakeholders note increased production for February compared to last month from preliminary reports, but also below forecasted levels for February thus far. Sellers from out of state offering spot loads at below Class prices have been reported from some contacts. All Classes have steady demand.
In Arizona, farm level milk output is unchanged. Throughout the area, milk volumes are available for processing. Demand for Class III is lighter, while demand for all other Classes is steady. Farm level milk output in New Mexico is steady to lighter. Milk volumes are available for processing throughout the area. Demand is steady for all Classes.
In the Pacific Northwest, farm level milk output is steady, and contacts report milk levels are manageable. Stakeholders note production is at forecasted levels. However, some stakeholders also note concern that farmers will lower milk output because of where milk prices are at. Some stakeholders relay reduced herd sizes, but increased efficiency has kept production up. Milk is available throughout the area. Demand is steady for all Classes, and stakeholders note some sales are priced below Class prices.
In the mountain states of Idaho, Utah, and Colorado, farm level milk output is steady. Although milk volumes available for processing have tightened up some, regional volumes remain ample. Demand is unchanged for all Classes.
Demand is steady for condensed skim milk. Contracted loads of condensed skim milk are steady, while the spot load market has lightened in activity. Regional availability of condensed skim milk is reported as mixed by stakeholders. While some note comfortable milk volumes in plants, others note condensed skim milk is widely available. Butter producers continue working through available cream volumes. Cream multiples moved farther apart on both ends this week.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 2.0383 - 2.9016
Multiples Range - All Classes: 0.8500 - 1.2100
Price Range - Class II; $/LB Butterfat: 2.6138 - 2.9016
Multiples Range - Class II: 1.0900 - 1.2100
Secondary Sourced Information:
Federal Milk Marketing Orders Milk pooled on the Southwest Federal Milk Marketing Order 126 totaled 1.158 million pounds in December 2022. Class I utilization was 328 million pounds and accounted for 28.36 percent of pooled producer milk. The Statistical Uniform Price for milk delivered to handlers in Dallas/Tarrant counties in Texas was $22.15, down 83 cents from November 2022.
Milk pooled on the California Federal Milk Marketing Order 51 totaled 2.021 billion pounds in December 2022. Class I utilization was 409 million pounds and accounted for 20.30 percent of pooled producer milk. The Statistical Uniform Price for milk delivered to plants in Los Angeles County, CA was $21.58, down 77 cents from November 2022.
