Dairy accounts for growing share of cull cow market

Poorer returns for dairy farmers throughout the winter have prompted an increase in the number of dairy cows being culled, while culls from the suckler beef herd appear more stable.

Dairy cows typically account for more than half of the national cull cow kill, according to data from the British Cattle Movement Service (BCMS).

However, culls from the dairy sector increased by 4% between September and February compared with year-earlier levels.

That is equivalent to an additional 8,000 dairy cows being culled.

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Becky Smith, senior livestock analyst at the AHDB, said: “This increased kill supports the notion that falls in milk prices have led to stronger culling rates, as dairy farmers look to improve efficiencies and limit costs.”

Meanwhile, culls from the suckler cow herd over the same period fell 6% from year-earlier levels, which represents 14,000 fewer cows.

Ms Smith said: “While a contracting suckler cow herd will account for some of this decline in cattle killed, the slowing of the slaughter rate could be an early indicator of some level of retention within the suckler herd.”

Seasonality also plays a role in cow numbers coming forward, with producers tending to cull more heavily in the autumn ahead of winter housing, which coincides with greater demand for beef in the build-up to Christmas.

Cull cow prices have been on a steady upwards trajectory since the beginning of the year, averaging 527p/kg deadweight at GB abattoirs in early April.

This puts prices up by almost 20p/kg on year-earlier levels.

Dairy sired cull cows averaged 241p/kg liveweight at auction markets in England and Wales, while beef sired cull cows averaged 293p/kg liveweight.

“Overall, cattle supplies remain tight, which is continuing to support prices at elevated levels, despite lower volume demand as consumers react to price increases at the shelf edge,” added Ms Smith.

“While dairy cull cow numbers have grown in recent months, we have seen the market absorb this supply without weighing on overall cow prices, in part due to reduced numbers from the suckler herd, holding total supply below year-ago levels.”