Markets deliver profit from dairy bull calves
Dairy bull calves have become a valuable asset again, with UK auction prices reaching averages of £60 to £80 per head for dairy bull calves through the spring and early summer. This is encouraging for producers who, for a number of years, have felt the only option was to shoot their dairy bulls on farm.
Currently, there is no export trade for calves because of a voluntary ban by overseas buyers following concerns about TB in summer 2008. However, UK auctions are seeing excellent calf prices, driven primarily by the high prices fetched by finished and store cattle.
"For farmer buyers in particular, some of the continental prices are now out of reach," says auctioneer Andrew Wallace, of Wright Manley at Beeston Market.
"Farmers can buy three decent dairy bull calves at £60 for the price of one good continental. Plus, there is a perception that, because of the credit crunch, some meat processors and buyers are now looking for a few more of the cheaper cuts.
"As more calves are delivered to the market, it is attracting more buyers which results in greater competition and better prices," Mr Wallace explains. "During April and May this year in particular, the dairy bull calf trade rocketed. Some have been making £80-100 at two to three weeks old, and we’ve had prices of £120- £170 for dairy bulls at six to eight weeks," he reports. Even before, throughout last year, dairy bulls were regularly reaching £40 to £50.
Chris Dodds, Secretary of the Livestock Auctioneers Association comments: "The market puts multiple buyers in a room together, each with different needs, which offers farmers the opportunity to capitalise on the market’s client base and means they are likely to receive the optimum price for every animal."
Mr Wallace believes the price required to make a dairy bull calf profitable is around £30. "Farmers don’t need to shoot their calves; they should give them a chance," he advises. "If you don’t, you’re essentially wasting a resource. If you’ve got the facilities to rear dairy bull calves to two or three weeks old, they can bring a good return."
