Mark Davis on latest market trade.
Since the start of the new聽year we have seen the聽dairy trade continue to be聽very strong and demand聽certainly seems to have聽outstripped supply.
Good, fresh, young cows and heifers have been in huge demand and聽have regularly been making聽拢2,000 拢2,500 at our fortnightly聽sales at both Exeter and Holsworthy聽markets.
The very best commercial聽heifers have been a phenomenal聽trade and have reached 拢3,000 on聽a couple of occasions which we聽have not seen before.
For several months now the聽milk price has been very high and聽there is no doubt it has been a good聽period for dairy farmers, but of聽course, we knew the price would聽come down at some point, but nobody really knew to what extent and we probably still do not know.
Since the end of January we聽have seen considerable drops in聽milk price and I think any further聽falls will determine the number of聽herds that come on to the market聽in the next few months.
Many are聽surprised by the strength of the聽dairy trade, but over the last couple of years, we have seen an increase in the number of flying聽herds and, of course, those flying聽herds need to keep buying-in replacements.聽
There is also still a number of聽herds down with bovine TB which聽also naturally creates demand.
The cull cow trade has been exceptionally strong for several months聽now and we are seeing cull cows聽come back at huge sums of money,聽with many of the strongest cows at聽拢1,400-拢1,600 and there is no聽doubt this has put a good base in聽our dairy trade and will continue聽to do so while at this level.
It does聽not take much of a cull cow to聽make 拢1,000 at the moment.
Dispersals
We have certainly seen a quieter聽period of dispersal sales, which is聽no great surprise with the strong聽milk price which farmers have had聽for the last six months.
The last two months have seen a聽handful of dispersals which have聽achieved outstanding averages in聽the region of 拢1,700-拢2,000 for聽whole herds including all faulted聽cows.
Now, at the beginning of聽March, there are very few sales in聽the pipeline and we expect trade聽to remain reasonably firm until we聽see more cows come on to the聽market.聽
Mark Davis
Mark Davis is director at Kivells,聽Exeter Livestock Centre. Call聽01392 251 261 or email [email protected]
