BIG numbers of dairy cull cows are hitting the market as farmers look to cut costs.
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Farmer Power vice-president Alex Robertson said many dairy farmers farmers had sold 10 to 15 per cent of their stock since the season’s milk price announcement.
“It’s well-known in the industry,” he said. “Unlike other downturns where you’d just milk a few more, everyone’s had to sell cows to balance the books.”
Mr Robertson said he, like other farmers, had sold stock just to trim numbers.
“There’s not the money to go around,” he said. “There’s going to be a big hole come spring.”
Agents say the strong chopper prices, courtesy of tight cattle supply across the board, is one of the few comforts for the dairy industry at the moment.
From May until the second week in July, dairy cow numbers sold in Victoria jumped from 20,572 in 2015 to 28,630 this year, National Livestock Reporting Service figures show.
Prices on average have lifted 33 cents per kilogram for light cows, 27c/kg in the medium category and 23c/kg for heavyweights.
With the total Victorian cow yarding reaching 30,968 in the May to July period this year, dairy lines are making up the majority quite comfortably.
Many southern milk producers are looking at an extended period of milking for a loss and need a cash flow.
Warrnambool Stock Agents Association president Anthony Mahony said he had seen an increased number of dairy cows across June and July yardings.
“We haven’t had the massive culling numbers they’ve seen up north,” he said. “But farmers are looking at their milking productivity and making cuts where they can.”
Mr Mahony said for some farmers, if a cow wasn’t producing enough milk, they were selling it.
NSW and Victorian specialist dairy agent Brian Leslie, DLS, said it was a good opportunity to cull cows not performing and get a good rate.
“I think the big numbers will continue for some time,” he said. “A number of dairy farmers are also culling and replacing with fresher milking cows without having to outlay much.”
While farmers used to sell two culls to buy one good milker, Mr Leslie said it was only costing farmers $200 for the changeover.
“That’s a bit of good news for dairy because the herd was progressively getting older, particularly with the lucrative export market of recent times. So this will turn things around,” he said.
Landmark Leongatha’s Terry Ginnane said farmers selling 20 to 30 per cent of the herd would still be in a position to ramp up within a season when milk prices turned.