Short Supply Driving Up Dairy Livestock Market
Trade in dairy livestock has been light during the winter, with few quality animals available.
PGG Wrightson National Dairy Livestock Manager Jamie Cunninghame says, with demand exceeding supply, prices have been buoyant.
“Anything available is selling well, and in the spring, anyone who offers stock with any quality will be well received by the market.
“Buyers are keen. Our sales of mixed age cows have ranged between $1400 and $2000 per head in recent weeks. Even for lesser cows prices are strong, boner cows are similarly scarce at present, with the meat value holding them up, too.
“Numbers are low. Because neither quantity nor quality is exceptional at present, when the right animals become available, the market has upside,” he said.
Younger stock are also scarce. Significant enquiry from China recently has focused on rising one year heifers. With less stock available than at this time last year, Jamie says the market is strong.
“We do not have large numbers of animals traded at present, in which case supply and demand is driving values. Where quality is available, it is selling well,” he said.
Coming up soon and running through to mid October, the bull sale season will feature sales throughout the country, through saleyards, and on-farm. This is prompting plenty of farmers to apply for a PGG Wrightson Defer-A-Bull purchase agreement, enabling them to finance a bull team with no upfront cost and no re-payments until the bulls are sold.
Jamie says Defer-A-Bull is a proven winner for many farmers.
“For most of our customers, who would otherwise have to go to the bank to secure extra capital to fund their bull purchases every year, this is a preferable option. Defer-A-Bull gives the ability to invest in your bull team when you need it, without putting any pressure on funds early in the season, when cashflow can be tight.
“It is easy to use and a great way to fund your bull purchases. Any farmer who is interested should talk to their local PGG Wrightson rep about the simple application process,” he said.