Mark Lee looks ahead on dairy stock prices.
The first quarter of 2023has been one of ourbusiest ever.
We have seen continual demand for dairystock of all ages and across allparts of the country with morethan 2,000 head sold via ourfarm-to-farm trading in Januaryalone.
Initial concerns over a shortageof forage in the southern half ofthe country seem to have had littleeffect on demand, despite even thelate and wet spring weather.
Even the more recent reductions in milk price have not,as yet, reduced cattle trade as wewould normally expect.
Instead, it seems the unprecedented cull prices are pulling largenumbers of cows from herds, withfarmers eager to replace themwith younger or fresher milkersand, while there is no doubt pricesfor fresh heifers have eased slightly from the highs of the start of theyear, they still remain a veryhealthy trade.
All eyes now turn tofuture milk prices as we movetowards the summer.
My own thoughts (and hopes) are that theywill quickly recover as milk buyersrealise the spring flush may not
materialise as feared.
I would urge processors to consider the combined effects of lowmilk prices, shortage of forage andcurrent high cull prices.
We may quickly find ourselvesshort of cows, short of milk and,consequently, in a quick turnaround in farmgate price as supplyfalls away.
One thing is for certain is thatwhile the meat market remainsat this level (and it shows no signof abating), prices for dairywill always be underpinnedand the demand for herdreplacements will continue.
Mark Lee
Mark Lee is auctioneer at Nortonand Brooksbank. Call 07980924179 or email [email protected]
