May 13, 2011

 

UK dairy predicament compels sale of additional north-east herd

 

 

The financial crisis in the UK dairy sector led to the sale of another north-east's dairy herds on yesterday (May 12) when a father and son sold most of their pedigree herd at Carlisle.

 

The dispersal of the milking portion of the Lhanbryde herd by George and Scott Milne, of Easter Coxton, Lhanbryde, Elgin, attracted considerable interest, auctioneers Harrison and Hetherington said. Nineteen of the 82 cows and heifers sold for more than 2,000gn. The average was GBP1,592 (US$2,587).

 

Another north-east herd goes under the hammer at Carlisle today (May 13). The Niscot herd of Nicholas Scott, of Millbuie, Skene, Aberdeen, comprises 129 cows in-milk and 90 heifers in-milk.

 

Scott Milne said the dispersal was down solely to the appalling economics of dairying. The pair has retained the herd's young heifers so that if ex-farm milk prices improve they can take advantage of them.

 

The Milnes have been milking at Easter Coxton since 1966. Their Holstein herd had a rolling average of 9,457kg (about 16,200 pints), with each of the cows yielding 31.7kg daily (about 56 pints).

 

Ironically, the bulk of the cows sold yesterday (May 12) from Lhanbryde were bought by Callum Innes and sons, Steven and Stewart, of Drumduan, Auldearn, Nairn. They are in the process of expanding their dairy operation as they still see opportunities in the sector, despite woeful ex-farm prices that fail to provide a profitable return for many.

 

Topping yesterday's (May 12) sale at 3,100gn was Lhanbryde Pearl 47, a VG86 daughter of Picston Shottle. She was bought by C. McNeil, of Cairnpat, Lochans, Stranraer. Drumduan took two at 3,000gn whereas Lhanbryde Dewdrop, another VG86 daughter of Shottle, and Lhanbryde Iris, also VG86 was purchased by Jocko Besne.

 

The Innes family then paid 2,800gn, 2,650gn and 2,500gn on three occasions. Other purchases followed at 2,400gn twice, 2,250gn again twice and 2,150gn on two occasions.

 

Newcastle University was a buyer at 2,050gn. The Innes team had three at 2,000gn each, and then others at 1,900gn, 1,880gn, 1,850gn, three at 1,800gn, two at 1,750gn, five at 1,700gn and another at 1,650gn. They bought another six between 1,500gn and 1,600gn.

 

Strong interest is also expected in the Niscot herd, where cows average 33kg (about 58 pints) a day. The rolling herd average per cow is 10,591kg (about 18,646 pints). That places the cows among the highest yielders in the UK. Scott is to put his farm into arable and work part-time in the oil industry.

 

He said, "There is only so long you can continue when the price you receive is below the cost of production. We need money to reinvest in the business but it is not there. I have a young family now. I am tired of having to work more than 90 hours a week for little or nothing. I do not want to stop, but I am."

 

Scott realised his dream in entering the dairy sector in 2001, aged 21. Within months, his herd was the fourth highest yielding in Scotland. A decade on and it has all gone sour.