In California, milk production continues to seasonally increase week-to-week. Some handlers note preliminary records indicate February 2024 year-over-year milk output is up thus far. Stakeholders relay a current health safety product recall by a Class III manufacturer, and downtime for a major processor due to a system changeover, will loosen milk availability and tighten available processing capacity in the state. Demands for all Classes are strong to steady. According to the California Department of Water Resources, as of February 20, 2024, the state has exceeded the historical mean of 15.1 inches for precipitation by 0.95 inches.
In Arizona, farm level milk output is steady to stronger. Processors relay spot milk loads are not abundant, and availability is tighter compared to this time last year. Handlers note condensed Class III milk demand is stronger. All Classes have strong to steady demands.
Milk production in New Mexico is trending higher. Processors note spot milk loads are tight. Demands for all Classes are unchanged.
Farm level milk output is stronger in the Pacific Northwest. Handlers relay an overall milder winter season for parts of the area has contributed to some higher than anticipated weekover-week increases. During January, approximately 85.4 million pounds of historically eligible milk was not pooled on the Pacific Northwest Order 124. Class I, II, III, and IV demands are strong to steady.
In the mountain states of Idaho, Utah, and Colorado, milk production is steady to slightly higher. A few stakeholders note some Class III loads have sold at-or-near flat Class IV prices recently. Class demands are unchanged.
Cream is plentiful, but not overwhelming in the region. Cream demand is steady. Cream multiples moved up slightly on the top end of both ranges. Condensed skim milk demand is strong.
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