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.”