Upturn hopes high for spring calvers
Upturn hopes high for spring calvers
By Simon Wragg
DAIRY cattle values are holding steady despite the recent increase in milk quota leasing costs, and some auctioneers are looking forward to a seasonal upturn for spring calvers after the year end.
Trade at many dairy centres has remained firm to average about £550 a head against mild fluctuations in the overall weekly price for first quality cows, report auctioneers.
"That said, it couldnt have gone much lower," says Clive Norbury of Crewe-based Wright-Manley. He admits that despite outward signs of a steady trade, some sales have been more difficult than others over the last few weeks.
During this time milk production continued to exceed quota, pushing leased prices up almost 2p/litre in six weeks.
That is adding pressure at some ringsides. At Taunton, auctioneer Richard Turner says the quota situation is responsible for stopping trade recovering to last years level. However, heifer and cow prices followed the national trend averaging about £560/head for better sorts close to or in milk.
Those cattle lying off from giving milk have taken the brunt of the pressure on prices.
"Look how many good heifers sell for £400 and bulling heifers for £200. I cant see these commercial prices altering much in the near future; certainly not up," adds Mr Norbury.
Mark Elliot of Uttoxeter-based Bagshaws agrees. However, he adds: "Buyers are still at the ringside and they are prepared to go that bit further for something thats tidy or a bit special."
Adding substance to auctioneers views, last weeks entry at Uttoxeter included a consignment from Norfolk attracting three bids for heifers of £600 or over.
And better prospects could be in view. Auctioneer Barry Colton at Hallworthy says that while the autumn calving trade is holding, albeit over £50 a head below last year for the Cornwall-based mart, other producers are looking to increase output to fill quota. "That continues to drive demand," he says.
"We also expect to see a new type of buyer early next year looking for fresh-calved or spring calving heifers and cows," he explains. That trade should be stronger with more producers looking to adjust calving patterns to make the most of cheaper milk from grass, he adds.
Hugh Evans of Carmarthen mart expects interest to extend to older cows. "If they are calving at the right time people are interested. The swing to summer milk has been very noticeable, particularly in areas such as Pembrokeshire, and will continue to be driven by seasonality payments.
"Spring calvers should attract a premium. Were looking at about £50 a head," he suggests.
There will continue to be a good number of dairy cattle from which to pick. Although dispersals are dying back, diary dates for early next year are filling up, explains Mr Evans.
That view is common among auctioneers: "The hurts not over yet; there are more producers to come out and cows to come forward," adds Mr Norbury.