Fluid Milk and Cream — Western U.S.
California milk production is steady. Class I orders are level. Class II is absorbing additional fluid milk due to seasonal production of ice cream and frozen desserts.
In Arizona, milk output is strong, and so is Class I demand. Dairy processors with available bottling or drying capacity are bringing in additional milk from the mountain states. Hearty Class II and III orders are supporting active ice cream and cheese manufacturing.
Milk supply is even in New Mexico. Balancing plants are working through large volumes of milk, and holdover numbers are decreasing. Contacts report that Class I demand is down slightly, Class II demand is flat, but Class III demand is growing due to increased cheese production.
There is an abundance of milk in the Pacific Northwest. Milk output is strong, and regional dairy processors are also helping to clear milk that would have gone to the Oregon creamery that was recently damaged by fire. Class I demand is strong. Industry contacts say that the milk jug resin shortage appears to be resolved and is no longer a hindrance to bottling.
Milk production is stable in the mountain states of Idaho, Utah, and Colorado. Class I orders are level. Contracted condensed skim is steady, but local spot load requests, and availability, are reported to be limited. Persistent tanker and driver shortages are a barrier to moving condensed skim into other regions.
Western cream is tightening a little, but supply is adequate for current demand. While cream cheese and ice cream production is strong, and butter churns are seasonally active, there is not much excess cream coming into facilities. This week, cream multiples for all classes inched up one point at the top of the range.