June 21, 2006

 

Dairy cattle fetching higher prices in the UK

 

 

Pedigree Holstein dairy cattle sold at auction in the UK are commanding excellent prices in spite of low milk prices.

 

Current prices for dairy cattle have risen 50 to 70 percent above 2001 levels.

 

Holstein UK club sales across the UK have reflected the upturn.

 

The January 2006 sale for the Border and Lakeland Club at Borderway Mart, Carlisle, Cumbria, was a total sell-out averaging nearly GBP 1,150 for all cows and heifers.

 

At the following month, sales averaged GBP 1,110, compared with the same sale in 2000 where the average was GBP489.

 

The shortage of dairy replacements is fuelling sales, said Jean Gould, a regular consignor of newly-calved heifers.

 

Commercial dairy producers are using the beef bull to produce finishing cattle and filled up their farms with milk cows to increase their herds, leaving no room to rear dairy replacements, Gould said.

 

Pedigree dairy auctioneer David Jones says higher herd replacement rates are placing an increasing demand on the market place.

 

In addition, diseases such as Johnes, BVD (Bovine Viral Diarrhoea) are taking their toll, he said, adding that herds are getting larger, meaning that more replacements would have to be found as well.

 

Producers have been expanding because of soaring business costs so having larger herds is a way of generating more income, Jones said.

 

The return of the market for cull cows with the opening of export markets was also underpinning trade for dairy replacements.

 

Holstein UK's Simon Gee added that purchasers of pedigree Holsteins were guaranteed the provenance of the product.

 

Demand for UK-bred dairy cattle has been further buoyed by the realisation that they are equal in genetic quality, if not superior, to imported cattle.

 

While many pedigree breeders run their herds on commercial basis, more non-registered breeders have invested in pedigree animals for breeding and future sales, Gee said.