Farm level milk output remains mixed in California for this week. Some stakeholders report strong milk production, while others continue to report less productive paddocks not fully dried up from the heavy rains received to start 2023. Ample milk volumes for bottling and other production facilities remain regionally available throughout the state. However, some contacts report transportation difficulties due to recent winter weather conditions. Demand is strong to steady for all Classes. According to the California Department of Water Resources, as of February 28, 2023, the state has gotten 21.55 inches of precipitation for the current 2022-23 Water Year, up 5.44 inches from the historical average. According to the California Department of Water Resources, the state will start March with 23.30 million acre feet of estimated statewide reservoir storage, which is 96 percent of the historical average for the month.
In Arizona, farm level milk output is steady to lighter with less favorable cow comfort weather and winter storm warnings for the southeastern part of the state. However, ample milk volumes remain available throughout the state for bottling and other production facilities. Class III demand is strong to steady, while demand for all other Classes is steady.
Farm level milk output is steady to lighter in New Mexico. Milk volumes for processing are available throughout the area. Demand for all Classes is unchanged.
In the Pacific Northwest, farm level milk output is steady. Despite some less favorable cow comfort weather of late, contacts report milk production is meeting forecasted levels. Ample milk volumes are available throughout the area. Some stakeholders report spot load sales at below Class prices. Class III demand is strong. All other Classes have steady demand.
In the mountain states of Idaho, Utah and Colorado, farm level milk output is steady. Idaho and Utah had more favorable cow comfort weather, while Colorado got out of single digit temperatures and winter storm warnings. Milk volumes remain ample throughout the area. Demand is steady for all Classes.
Demand for condensed skim milk is steady. Contract sales are steady, while spot market activity continues to be light. Regionally, condensed skim milk remains widely available to ample by stakeholders. Plentiful cream volumes are available for producers to keep busy production schedules. Lower end cream multiplies moved up this week, but remain below a flat market.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 2.2729 - 2.8949
Multiples Range - All Classes: 0.9500 - 1.2100
Price Range - Class II; $/LB Butterfat: 2.6078 - 2.8949
Multiples Range - Class II: 1.0900 - 1.2100
