Western U.S. milk and cream report

Jan. 30

In California, week-to-week milk production is stronger. However, handlers indicate milk production continues to be down compared to last year in terms of a year-over-year comparison. Stakeholders in some parts of the state convey milk volumes are very snug, and spot loads are tight if any are available to secure. Class I demand is stronger. Class II, III, and IV, demands are steady. According to the California Department of Water Resources, as of January 14, 2025, statewide precipitation for the 2024-25 water year is below the historical mean, and as of January 15, 2025, statewide reservoir storage is 26.10 million-acre-feet, which is above the historical average. Milk production in Arizona is seasonally strengthening. Class I demand is stronger, while all other Class demands are steady. Handlers in New Mexico indicate milk production is seasonally strengthening as well. Demand for Class I milk is stronger, while demands for all other Classes remain steady. In the Pacific Northwest, handlers convey farm level milk output is in line with or ahead of anticipated volumes. Processors note milk volumes continue to be ample for production schedule plans. Class I milk demand is stronger. All other Class manufacturing demands are steady. Processors in the mountain states of Idaho, Utah, and Colorado generally indicate farm level milk output is seasonally strengthening week-to-week. Stakeholders convey milk volumes are generally accommodating spot buyers looking to secure spot milk loads. Stakeholders indicate demands for Class I, II, III, and IV milk are stronger. Cream volumes are readily available in the region. Cream multiplies moved lower on the top ends of both ranges. The bottom end of the All-Classes range remains at 0.70, well under flat market pricing. Cream demand is mixed. Condensed skim milk availability is tighter. Condensed skim milk demand varies from moderate to steady.

Fluid Milk and Cream Review: https://www.ams.usda.gov/mnreports/ams_1102.pdf