Flying herds: Do the figures stack up?

Releasing buildings, freeing-up labour and allowing time and effort to be focused purely on the job of milking cows has been the thinking behind the decisions taken by dairy farmers who have quit rearing their own replacements and switched to flying herds.

But as the value of calved heifers and good young cows continues to escalate – driven purely by a shortage – are the perceived economic advantages that underpin a flying herd now looking less attractive?

Auctioneers are already seeing a reduction in the number of calved cows and heifers consigned to regular dairy sales and with fewer herd dispersals in the pipeline, a sustained short supply will ensure calved heifer averages at best remain at about £2000 or possibly rise even higher.

Consultants admit there is no easy short-term solution, but recognise that if the supply situation is set to tighten in the coming year there is no time to waste in coming up with alternatives that will provide a supply of good heifers to come on-stream in 2010 – and at a cost that won’t become a major drain on the business.

Dairy specialist Rob Mintern of the Kingshay Farming Trust confirms that many flying herds, faced with rocketing replacements costs, are now looking closely at their long-term options.

“I don’t think many are yet at the point of making radical changes to their replacement policy, but this is a hot topic of discussion, particularly as we’ve seen some milk producers move away from rearing their own heifers as part of the rationalisation of their businesses during the era of low milk prices.”

“Although it’s hard to predict what’s going to happen to the value of stock in the medium-term, I’d advise any owners of flying herds not to jump too quickly into an alternative system of sourcing herd replacements,” says Mr Mintern.

Identifying a proportion of the herd’s best cows, breeding them pure and having the heifer progeny reared on contract is one option being considered by some flying herd owners to provide at least a proportion of the herd’s replacement needs.

“But a dairy-bred bull calf is worth nothing compared with a beef cross calf of either sex which could earn more than £300 when sold as a weanling. That sort of income is a big help towards paying for heifer replacements bought-in freshly calved compared with having your own calves reared on contract,” explains Mr Mintern.

Heifer options

• Avoid rushed decisions
• Contract rearing option
• Look for long-term solution

CASE STUDY: Charlie Fitton, Middlewich, Cheshire

Cheshire dairy farmer Charlie Fitton milks 560 cows at Yew Tree Farm, Middlewich. He’s run a flying herd for 40 years and although he’s not planning to start rearing his own heifers, he admits it’s an issue under discussion.

“Everyone with a flying herd is in the same position. Will these heifers continue to be available in good numbers and what are they going to cost? Those are the questions everyone is asking, but as yet we don’t feel that our own business would benefit from the investment needed to start rearing our own heifers,” says Mr Fitton.

A regular buyer of heifers through Wright Manley’s sales at Beeston Castle, he says although the cost of newly calved heifers has remained high in relation to the price of milk, the latest increase in the milk price coupled with the lower number of black-and-white cattle coming on to the market, has combined to lift average prices to their current level.

“The rate of replacement is key to profitability of a flying herd and never more so than now. We try and wear our cows as long as we can and keep culling rate low. We’re currently at an annual culling rate of 17-18%.”

Mr Fitton puts all his dairy cows to beef bulls, but like other flying herd owners he knows one option might be to bull his best cows with Holstein sires and either rear the calves himself or have them reared on contract.

Maintaining the quality of the cattle in the herd is a priority and although replacements prices have increased by more than £400 during 2007 that policy will continue.

“Trying to cut corners and buy cheaper cattle is no solution. Buying good quality cattle and maintaining a high standard of herd management to keep the culling rate low continues to be our aim and the best way to keep replacement costs down,” he adds.