Fluid Milk and Cream — Western U.S.

July 15

Farm level milk production is decreasing in California, but milk is still widely available for all needs. Class I orders are level to lower. Class III demand is steady, and cream cheese production is reportedly strong.

Arizona milk production is following seasonal patterns and dropping in the hot summer weather. Bottling demand is down. Class II and III orders are steady. Contacts say wildfires are not impacting dairying operations, manufacturing, or hauling routes.

New Mexico milk production is steady. Class I orders are level to higher. Balancing plants are active, and Class III demand is healthy.

Milk output is down in the Pacific Northwest. Contacts say cows are still recovering from recent heatwaves, and in some areas, milk has dropped as much as 20% from peak. Bottling demand is lower. Class II and III sales are flat to higher.

Milk production in the mountain states of Idaho, Utah, and Colorado is steady to slightly lower. Despite heat-related decreases in production in Idaho, milk is still abundant. Some contacts report spot loads are available at discounts of up to $5.50 under Class III. Bottling sales are higher. Contracted condensed skim is steady. Cream is tightening. Variations in demand, availability, and cream-based manufacturing production exist throughout the region.

Contacts say cream is shorter in the Pacific Northwest than the Southwest. Limited fluid hauler availability hinders spot cream from moving too far from its origin. Cream multiples shifted up this week.