Why a drop in dairy export heifer values is not all bad for farmers

Why a drop in dairy export heifer values is not all bad for farmers

A surplus of dairy heifers is encouraging some farmers to offload chopper cows and incorporate younger milkers in their herds.

With a softening in export competition, especially from China, young heifer prices have been driven down to about half what was being paid at its peak, where rates hit more than $2000.

The increased use of sexed semen has added to the numbers available, keeping prices flat.

Dairy Livestock Services agent Luke Russell from Warragul was buying younger cows for clients last week, and said the ability to upgrade herds made sense financially given the smaller changeover cost.

“Farmers can sell a big old cow for $2000 or more and get back into a fresh young

cow at $2800, a cow that is in full milk and has her life ahead of her,” Mr Russell said.

DLS agent from Warragul Luke Russell said the heifer market was flat thanks to soft export demand.

He said there was little incentive now to rear heifers on the chance they could be sold for export, despite some orders still being around.

“I think that farmers are simply rearing what they need, and with fewer, smaller operators around needing a few extra cows after many of those left the industry, then there’s just not that demand for heifers.

“We (DLS) are definitely not having as many multi-vendor sales – don’t get me wrong, private trades are happening – as there is just not the level of demand.”

Northern Victorian Livestock agent Craig Cox said a recent export order for dairy heifers at rates of $950-$1000 had flushed few out of the system.

Mr Cox said a current order for heifers for live export to Turkiye was easier to fill with prices up to $1300 for 210-300kg liveweight heifers, though still not attractive.

“When I was trying to fill that first order at $950-$1000, one in twenty farmers would take my call, and at up to $1300, it’s more like one in 10,” Mr Cox said.

The excess of heifers on the market reflected the changing dynamics in the industry with corporate or large family-owned enterprises using sexed semen, he said.

“The number of little guys left (smaller herds) has really decreased,” Mr Cox said.

Multi-vendor sales had also gone quiet, and while Northern Victorian Livestock used to hold monthly sales, they had not held one for six months.

“Gone are the days where there were 20 people in the crowd looking to top up on numbers,” he said.

Multi-vendor dairy sales are being held less often.

But some farmers were taking an optimistic approach to the numbers, and swapping out old cows to calve down heifers, and decrease their herd age.

Mr Cox said this could be a win for their operations, with the possibility to get cell counts down due to the overall younger herd.

“When the export job was good, there was the temptation to sell younger females and hold onto cows, and now that’s changed with the flatter export demand,” he said.