Mark Davis on latest market trade.
Since the start of the new听year we have seen the听dairy trade continue to be听very strong and demand听certainly seems to have听outstripped supply.
Good, fresh, young cows and heifers have been in huge demand and听have regularly been making听拢2,000 拢2,500 at our fortnightly听sales at both Exeter and Holsworthy听markets.
The very best commercial听heifers have been a phenomenal听trade and have reached 拢3,000 on听a couple of occasions which we听have not seen before.
For several months now the听milk price has been very high and听there is no doubt it has been a good听period for dairy farmers, but of听course, we knew the price would听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听have seen considerable drops in听milk price and I think any further听falls will determine the number of听herds that come on to the market听in the next few months.
Many are听surprised by the strength of the听dairy trade, but over the last couple of years, we have seen an increase in the number of flying听herds and, of course, those flying听herds need to keep buying-in replacements.听
There is also still a number of听herds down with bovine TB which听also naturally creates demand.
The cull cow trade has been exceptionally strong for several months听now and we are seeing cull cows听come back at huge sums of money,听with many of the strongest cows at听拢1,400-拢1,600 and there is no听doubt this has put a good base in听our dairy trade and will continue听to do so while at this level.
It does听not take much of a cull cow to听make 拢1,000 at the moment.
Dispersals
We have certainly seen a quieter听period of dispersal sales, which is听no great surprise with the strong听milk price which farmers have had听for the last six months.
The last two months have seen a听handful of dispersals which have听achieved outstanding averages in听the region of 拢1,700-拢2,000 for听whole herds including all faulted听cows.
Now, at the beginning of听March, there are very few sales in听the pipeline and we expect trade听to remain reasonably firm until we听see more cows come on to the听market.听
Mark Davis
Mark Davis is director at Kivells,听Exeter Livestock Centre. Call听01392 251 261 or email [email protected]
