In California, farm level milk output is mixed. Some regional areas keep strong to steady milk production. However, other regional areas remain having steady to lighter milk production as flooding and overflowing rivers impact dairy operations. Reports of dairies continuing to relocate herds to higher and drier paddocks is noted from industry sources. Milk volumes are available for bottling and production needs throughout the state. Reductions in processing capacity for the Central Valley area remain noted by contacts, causing challenges with balancing supply and demand to continue. Some transportation delays continue as use of alternative routes are still needed in regionally flooded areas. Contacts note spot load purchases and sales at below Class prices. Class I demand remains lighter as educational facilities continue through their respective spring break schedules, while demand for all other Classes is unchanged.
Farm level milk output is steady in Arizona. Temperatures reached the 80s in the state this week. Throughout the state milk volumes are available. Some open capacity continues to be reported by stakeholders, which remains being filled with out of state milk volumes. These spot load purchases and sales are noted at below Class prices by contacts. Demand for all Classes is steady.
In New Mexico, farm level milk output is steady. Temperatures got up to the 70s this week in the state. Milk volumes for bottling and production needs are available throughout the state. Demand for all Classes is unchanged.
Farm level milk output in the Pacific Northwest is strong. Plenty of milk volumes are available throughout the state for bottling and processing needs. Manufacturers report heavier to balanced milk volumes compared to current production needs. Class I demand is lighter as some educational facilities still have upcoming spring breaks. All other Classes have steady demand. Contacts note spot load sales and purchases at below Class prices.
Milk production in the mountain states of Idaho, Utah, and Colorado is strong to steady. Colorado got some temperatures down into the 20s this week, but impact on milk production was minimal. Milk volumes are available throughout the area. Class I demand is lighter as educational facilities throughout the mountain states cycle through regional spring breaks. Demand for all other Classes is steady.
Contract and spot market sales of condensed skim milk are steady to light. Plenty of condensed skim milk is available. However, some stakeholders report areas of California as tighter, with some manufacturing facilities coming back online and some others working back to max production schedules. Available cream is plentiful to keep strong production schedules. Cream multiplies moved to below a flat market on the bottom end this week.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 2.2624 - 2.9054
Multiples Range - All Classes: 0.9500 - 1.2200
Price Range - Class II; $/LB Butterfat: 2.5958 - 2.9054
Multiples Range - Class II: 1.0900 - 1.2200
Secondary Sourced Information:
Milk pooled on the California Federal Milk Marketing Order 51 totaled 2.363 billion pounds in February 2023. Class I utilization was 383.0 million pounds and accounted for 16.2 percent of pooled producer milk. The Statistical Uniform Price for milk delivered to plants in Los Angeles County, CA, was $19.10, down $1.40 from January 2023.
Milk delivered to the Pacific Northwest Federal Milk Marketing Order 124 totaled 655.5 million pounds in February 2023. Class I producer milk was 124.3 million pounds and accounted for 19.0 percent of total producer receipts. The uniform price at test for February 2023 was $22.44, down $1.76 from January 2023.
Milk delivered to the Arizona Federal Milk Marketing Order 131 totaled 416.7 million pounds in February 2023. Class I producer milk was 112.3 million pounds and accounted for 27.0 percent of total producer receipts. The uniform price at test for February 2023 was $20.89, down $1.44 from January 2023.
Milk delivered to the Southwest Federal Milk Marketing Order 126 totaled 1,139 million pounds in February 2023. Class I utilization was 303.3 million pounds and accounted for 26.64 percent of pooled producer milk. The Statistical Uniform Price for milk delivered to handlers in Dallas/Tarrant counties in Texas was $19.78, down $1.34 from January 2023.
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