Dairy replacement prices hold while cull cow trade weakens
The cattle market is showing contrasting trends. Dairy replacement heifers have continued to attract firm prices, while animals leaving the herd have faced subdued demand. Auctioneers linked the strength of the replacement market to restricted availability and more favourable milk prices.
At Leek market in Staffordshire, dairy cattle reached £3,400 a head last week. Meg Elliott, a dairy cattle auctioneer at Leek Auctions, said replacement trade was strong because fewer cows were available. Sales typically involved between 50 and 70 cows, and she said the milk price had become more positive.
Ms Elliott said prices could reach £3,500-£4,000 a head in future sales. Mark Davis, a director at Kivells Auctioneers in Exeter, also reported firm demand. He said there had been few dispersal sales, leaving freshly calved heifers scarce, while some cows had sold for more than £3,000 a head.
Mr Davis said he expected numbers to remain limited and reported that the supply of replacement cattle was not meeting demand. The comments came as tight availability supported values for animals entering dairy herds.
The market for cull cows was less resilient. Stuart Vile, beef marketing manager at Meadow Quality, said the GB base price had declined by 40-50p a kilogram during the previous five weeks. Livestock Auctioneers Association figures showed a 2.8% weekly fall in the price of dairy-bred cows in the week ending 8 September.
Nearly 1,100 cull cows were sold through markets during that week, including 631 dairy-bred animals. The dairy-bred group averaged 188.4p a kilogram. Mr Vile attributed part of the decline to weaker consumer spending and said hot weather during the summer had contributed to saturated EU markets by increasing the supply of cows.
Mr Vile said the cull cow market was expected to remain broadly flat in the near term. He also said prices might begin to rise in four to five weeks as Christmas spending increased. Processors similarly expected demand for cull cows to strengthen as Christmas approached.
