Contacts report strong milk production in California, with milk output increasing week over week. Farm-level milk production remains steady in New Mexico, Arizona, and Colorado. In the Pacific Northwest, milk production has declined somewhat as positive cases of Highly Pathogenic Avian Influenza have expanded across the region. Idaho reports balanced farm-level milk output as cooler temperatures continue to spread throughout the region.
Classes demand remains steady week over week. Federal Milk Market data for Areas 51, 124, and 131 show Class I, II, and IV posting the largest year-over-year declines from 2025 to 2026, while Class III shows the strongest growth in fluid demand. Cream availability across the West remains balanced. Some spot loads are available, but contacts expect cream supplies to become more abundant as favorable fall weather conditions continue. Cream multiples moved slightly higher at the top of both regional ranges.
Condensed skim milk remains tight, with contacts reporting limited availability. Buyers are negotiating contracts to secure condensed skim milk and, in some cases, must also contract for other, more readily available fluid products in order to secure the contract. Some manufacturers are turning to nonfat dry milk (NDM) to fill ingredient supply gaps. According to contacts, suppliers have left some 2027 condensed skim contracts unfilled because of current availability projections.
