Fluid Milk and Cream — Western U.S.
Milk production in California is approaching spring peak levels. Class I demand is level. Facing another year of drought, Californians in some areas of the state have been asked to voluntarily reduce residential water use. Cutbacks to irrigation water throughout the summer are anticipated, and industry contacts are apprehensive that the cutbacks may be steep for some farmers.
Arizona milk output is plentiful. Class I demand is high, and some dairy processors with available capacity are bringing in additional milk from out of state.
Milk production in New Mexico is steady. Class I demand is level. Some drivers and tankers are being diverted to other industries, which is creating some milk hauling delays within New Mexico and throughout the Southwest.
In the Pacific Northwest, component levels are high. Milk output is strong and so is Class I demand. Bottling and other dairy manufacturing operations are active, and overbase programs are also working to manage the abundance of milk.
Week over week milk production is starting to decrease a little in the mountain states of Idaho, Utah, and Colorado. Class I orders are level. Local requests for condensed skim spot sales are reported to be limited, although contracts are steady. Tanker availability is a barrier to moving condensed skim out of the region. Cream supply is adequate to abundant in the West. Output is following seasonal patterns, with some areas starting to see slight decreases. However, supply is still meeting demand. Western cream multiples for all classes are steady.