Milk and cream volumes have returned to seasonal norms now that peak heat has passed. Class I bottling remains focused on school demand and is expected to return to normal after Labor Day. California producers report milk output is down 6-8 percent from peak levels but expect recovery. This aligns with the National Milk Production report released August 21, 2026, which shows a 0.8-percent year-over-year decrease in California milk production. The report also notes fewer cows in the state but higher production per cow.
In the Northwest, both cow numbers and milk per cow have increased, except in Oregon, where both metrics declined. Contacts note planned herd expansion to meet demand and support new and expanded manufacturing capacity in the region.
The Southwest also reports year-over-year increases in cow numbers and milk per cow, though rising freight costs remain a concern. Class II cream and production alignment fluctuated last week.
Cream loads remain mostly available across the region, though Utah reports long cream, and an Idaho plant is down for unplanned repairs. Condensed skim milk is in overabundance, requiring volume adjustments for a California manufacturer.
Class III spot and contractual milk volumes are arriving as expected. Class IV milk and cream remain consistent, with improved milk-fat components. Contacts note planned downtime for some facilities, but report cream will be redirected to other locations , and no reduction in total cream intake is expected.
