April 23, 2014

With continued demand from China for dairy heifers, coupled with a fiercely competitive procurement environment, prices of Australia's animal exports are driven to near-record levels.

Some agents are reporting prices as high as AUD2,200 (US$2,000) for registered mated Holstein heifers while weaned Holsteins, weighing between 200 kilogrammes and 220 kilogrammes, are fetching up to AUD1,800 (US$1,670).

Close to farmers' minds will be the events of early last year when the dairy heifer export market crashed almost overnight after agents were paying what some called "unsustainably high" prices.

But the market seems to have returned to high levels, with ready-to-mate commercial unregistered Holstein heifers fetching up to AUD1,600 (US$1,500).

Companies such as Elders, Dairy Livestock Services, Landmark Global Exports and Total Livestock Genetics, to name a few, are all actively chasing export heifers.

Elders International procurement manager Scott Altschwager said the dairy heifer export market was a very strong environment at the moment. Altschwager said the company had just completed a purchase order in which they procured joined and unjoined Holsteins, Jerseys, and even some crossbreds.

While there was a lot of interest from China, Altschwager said he had fielded enquiry from a number of other regions. As to how long such high prices would last, Altschwager described the situation as "unchartered territory". Altschwager said if history repeats itself, which it normally does, at some point in time the international clientele may look to reduce price offerings or look for alternative options.

Landmark Global Exports buyer Allan Peglar said the market was "very buoyant". He expects it to remain that way for at least the next 12 months.