Feeder calf values have jumped significantly this season. Kelly Higgins, Regional Livestock Manager for Carrfields Livestock, says Friesian bull calves are going for $300 to $500 in the autumn just gone, and beef bull calves between $400 to $600 against $100 to $200 for Friesians a year ago.
"Traditionally the feeder calves have been viewed as a by-product of the dairy farming system, but they're certainly now a genuine income stream for the dairy farmers in what are typically leaner cash flow months," he says.
The spring market has opened with Friesian bulls at $200 to $300 on limited numbers and top Charolais calves reaching $560.
"The autumn calves have sold exceptionally well up here in the Waikato – all the rearers have pretty much sold out."
He says there are several forces keeping prices firm. National beef herds have shrunk as land shifts into forestry, dairy beef is filling the gap, and a strong yearling market has some farmers rearing their own replacements again.
"We're seeing record beef schedules at the moment, with demand for red meat and protein exceptionally high."
He says the Friesian bull is trading well from weaners to yearlings and 18-month cattle.
"The Friesian bull has been a rollercoaster in the past, up and down, but it is absolutely back in vogue again now.”
He says farmers are being more strategic at mating. Beef straws from Charolais, Angus, Hereford and Speckle Park are going over lower-producing cows.
"You would have seen in the past, the lion's share of those farmers would have used the Friesian genetics to capture that export market, but as we know, that export market is no longer."
He says the buyers span larger rearers, dry stock farmers and small block holders rearing for themselves.
"We also use bidr at our auctions, and that has seen those calves travel through a much larger buying bench through the country.”
He says this means calves are moving weekly to Hawke's Bay, King Country, Wairarapa and Northland. Pressure to process fewer bobby calves is driving more use of beef straws, and an older farming demographic favouring dairy beef cattle for their quieter temperament.
"Quality, well-marked calves with age on them, and you should be on the money.
"I believe the dairy beef market is here to stay.”
This is brought to you in partnership with Carrfields Livestock. To learn more about buying, selling or managing livestock, or to connect with a local livestock specialist, visit carrfieldslivestock.co.nz
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