California milk production is currently strong. Manufacturers convey open processing time remains tight as milk volumes are generally pushing against processing capacities. Stakeholders note spot milk loads being offered at prices below the Federal milk marketing order blend price. According to the California Department of Water Resources, as of January 27, 2026, the state has received 14.55 inches of precipitation for the current 2025-26 Water Year, up 2.61 inches from the historical mean. This is increasing reservoir levels and water resources for dairy farmers.
Farm level milk output in Arizona and New Mexico is steady. Spot loads are available. New Mexico handlers note road closures and some downtime at dairy processing facilities due to winter weather related impacts, which has resulted in some distressed milk volumes.
Handlers in the Pacific Northwest note cow comfort has improved, and milk output is back within anticipated volumes. Despite this, some manufacturers are continuing to secure spot milk loads.
Farm level milk output in the mountain states of Idaho and Utah is strong. Stakeholders indicate a few processors had decreased intakes for a portion of January but are now receiving typical volumes again. Spot loads remain available. Farm level milk output in Colorado is steady. Class I and II demand is steady, while Class III and IV demand is mixed throughout the region.
Cream loads are widely available, and demand is mixed. Cream multiples moved higher at the bottom ends of both ranges. Condensed skim milk availability and demand are steady.
