Since implementing the zero credit-use restriction in March and April, the milk supply and demand has been much better aligned in the Western Milk Pool (WMP). We are still seeing market volatility and as a result the zero-credit-use restriction policy will remain in place for May 2022. A zero credit-use restriction means that you can only produce to your quota holdings. Any production more than your quota holdings will be deemed over quota. The use of quota credits cannot be applied to any production greater than your monthly quota holdings.

Please be aware that there needs to be a good balance of daily supply and demand of milk throughout the month. Producers are encouraged to ship to their daily quota eligibility on a weekly basis, rather than front-loading (i.e., shipping higher volumes) during the first three weeks of the month and excessively reducing on-farm production in the fourth week of the month. Front-loading on-farm production in the first three weeks of the month negatively impacts the blend return due to surpluses that result in excessive skimming (during the first three weeks of the month), and shortages in the last week of the month (due to our inability to meet processor orders).

The WMP will continue to closely monitor the milk supply and demand situation and will respond as required based on market signals.