Milk production is mixed in California. Some areas are maintaining strong to steady farm milk production trends. However, other areas still contending with flooding have steady to light farm level milk output. Contacts note preliminary reports indicate increased milk output for April compared to March of this year, but lower milk output for April of 2023 compared to April of 2022. Available milk volumes in the state are reported as heavier to balanced compared to bottling and production needs by contacts, with previously shut down processing facilities due to flooding in the Central Valley area up and running again. Stakeholders note transportation continues to be problematic for parts of California, with heavy volumes to be transported in some areas and continuing needs for alternative routes to be used in other areas. Spot load purchases and sales at below Class prices remain reported by contacts. Class I demand is lighter as educational facilities cycle through respective spring break schedules, while demand for all other Classes is unchanged. According to the California Department of Water Resources, the state has received 9.67 inches of precipitation above the historical average for the current 2022-23 Water Year as of April 11, 2023, and estimated statewide reservoir storage is 27.80 million acre feet or 104 percent of the historical average for the month as of April 12, 2023. However, the California Department of Water Resources also shows the number of dry wells reported year to date has increased to 138.
Farm level milk output in Arizona is strong to steady. Temperatures reached the upper 90s in the state this week, but impacts on current milk production were minimal. Stakeholders continue to report some open capacity, which is being filled with out of state milk volumes. Spot load purchases and sales remain noted at below Class prices by contacts. Demand is steady for all Classes.
In New Mexico, farm level milk output is steady. Temperatures climbed up into the 80s throughout this week. Availability of milk volumes for bottling and production needs to meet current demand is adequate in the state. Demand is steady for all Classes.
Milk production in the Pacific Northwest is strong. Throughout the area milk volumes are available for bottling and processing needs. Manufacturers report slightly heavy to balanced volumes compared to current production needs. Class I demand is lighter as the last spring breaks among educational facilities in the state finish up. All other Classes have steady demand.
In the mountain states of Idaho, Utah, and Colorado, farm level milk output is strong to steady. In Colorado and Utah temperatures climbed up into the 80s during the week. Overall cow comfort is good in the mountain states. Some industry sources suggest a delayed start for spring flush, but any impact on current milk production is minimal. Milk volumes are available throughout the area for bottling and processing needs. All Classes have steady demand.
Condensed skim milk contract and spot load sales are steady to light. Plenty of condensed skim milk to accommodate current demand is available. However, some areas of California are noted as tighter by contacts, with production facilities working back to stronger processing schedules. Plentiful amounts of cream are available to keep strong production schedules. Cream multiples were unchanged this week.
Western U.S., F.O.B. Cream
Price Range - All Classes; $/LB Butterfat: 2.2117 - 2.8403
Multiples Range - All Classes: 0.9500 - 1.2200
Price Range - Class II; $/LB Butterfat: 2.5376 - 2.8403
Multiples Range - Class II: 1.0900 - 1.2200
