In California, milk production is weaker. Industry participants say rising heat levels are contributing to more pronounced week-to-week decreases in milk production. Handlers report preliminary records indicate May 2024 milk production is down compared to May 2023 milk production and below anticipated milk volumes. Spot milk availability is tightening. Some plant managers indicate securing needed milk volumes is more challenging recently. Class I demand is lighter as many school districts have started summer breaks. Class II, III, and IV demands are steady.
Milk production in Arizona is weaker. Handlers say rising heat indexes are contributing to larger week-to-week decreases in milk production. Processors convey milk availability in the state is tighter and some concerns of milk availability are growing. All Class manufacturing demands are steady.
Farm level milk output in New Mexico is trending weaker. However, no shortages are noted by processors. Demands for all Classes are steady.
In the Pacific Northwest, farm level milk output is reported as steady or slightly weaker. Handlers convey milk output is on the downward side of spring production trends. That said, handlers also note week-to-week milk production differences are not heavily pronounced yet. Class I, II, III, and IV demands are steady.
Milk production in the mountain states of Idaho, Utah, and Colorado is noted as steady or trending slightly weaker. Handlers convey Colorado milk production is starting the downward portion of the spring production curve for this year. Stakeholders convey milk volumes are comfortable compared to processing capacities and needs. Class I demand is lighter as educational institutions start seasonal breaks. All other Class demands are steady.
Stakeholders indicate cream demand is stronger and cream volumes are tightening in some parts of the region. Cream multiples moved higher. Condensed skim milk demand is stronger, and availability is in line with recent weeks.
