Farmer Focus: Dairy bull calves reach all-time high of £328 in US

The price of beef in California is exceptionally good at the moment. As an organic Holstein dairy, the by-product of our cows is beef from cull cows and bull calves and this added income is a benefit.

We seem to have been on a long streak with record-breaking prices, which makes a nice change. Organic slaughter dairy animals have been bringing us about $1.80/lb (£1.18/lb).

This is a liveweight price and the cattle are shipped and weighed in our town just five miles from our ranch, which is an added benefit.

Our bull calves saw a high through the summer months of more than $500 (£328) a head.

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This has never been heard of and it lasted for months. The price slowly dropped at the end of summer and climbed again, settling at $250 (£164) a head. Our calf buyer comes twice a week and picks up all calves of a good size and health condition.

The drought has been hard on all farmers and ranchers out West, but for the ones with cattle left to sell we may have the drought to partially thank for the strong beef prices.

Across the US, cow calf beef operations that depend on pasture to keep their ranches going have had to cut back as much as 15% on their herd sizes. This is a combination of poor pasture conditions and higher hay prices.

Where my family’s farm is located in northern California – just one hour away from San Francisco – there is also a large market for organic products.

Having a local market and growing national market for organic proteins and non-GMO foods has continued to strengthen our organic beef market.

As a farmer I count my blessings for the good times because I know that with every price increase will come a price drop in the future.