Western U.S. milk and cream report: Jan. 23

For California, handlers note week-over-week increases in milk production throughout January thus far. Although stakeholders convey preliminary records indicate milk volumes to be up this month compared to December 2024, January 2025 milk volumes are below expectations of some handlers thus far.

In terms of year-over-year milk production, handlers note January 2025 is down from January 2024. Stakeholders convey herd health is improving which is contributing to milk production recovery. Some plant downtime is taking place due to planned maintenance.

Class I, II, III, and IV, demands are steady. Farm level milk output in Arizona is stronger. Processors indicate milk volumes are meeting production needs. All Class demands are steady. Milk production in New Mexico is stronger as well.

However, like the other southern states of the West region, spot milk loads are more limited than spot cream loads. All Class manufacturing demands are steady. For the Pacific Northwest, handlers note milk production as steady or stronger. Processors note milk volumes continue to meet production needs.

Demands for all Classes are steady. Stakeholders in the mountain states of Idaho, Utah, and Colorado indicate week-over-week milk production is generally trending higher. Spot milk load purchases above Class III prices are noted by buyers. In terms of contracted milk buying, some manufacturers convey multi-year agreements have been reached. In a few cases, manufacturers convey the length of the agreement is longer than what has been typical in the past. All Class demands are steady.

Cream volumes are plentiful in the region. Although cream multiples moved higher this week, the low end of the All-Classes range remains comfortably below flat market pricing, at 0.80 for this week. Cream demand is mixed, and the sentiment of some cream sellers is more cream loads available than homes.

Condensed skim milk demand is also mixed. Condensed skim milk availability is generally in line with expectations.

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