California milk output ranges from steady to slightly higher with highly favorable weather conditions prevailing across the state. Milk movements throughout the state were generally normal, but some additional fluid milk orders were noted, which was common throughout the state and region. In New Mexico, milk output is fair to good. There are concerns about the high replacement animal costs, but producers are filling recently expanded and new facilities.
Hay prices remain high and top dairy quality hay is hard to find.
Hay producers are harvesting as long as the crop is still growing. Dairy producers are able to absorb the higher cost because of currently favorable milk prices they are receiving. In Arizona, milk production is steady to instances lower. Hotter and more humid conditions are stressing the herds again. Indications are that milk production in August will be 5 or more percent lower than last year.