Sub topics

• Benchmarking
• Milk Price
• Land Prices
• Stock Prices
• Agistment Rates

Stock Prices

The cost of livestock represents a significant proportion of the total investment in dairying. Dairy stock prices vary over time depending on a range of factors, including:

Current market forces (usually a reflection of milk price)

• Milk prices
• Breed
• Production history
• Time of calving
• seasonal conditions

Cow prices can vary by as much as 40 per cent from one season to another. The prices quoted in the table below are a reflection of current conditions (2007).

Milk Prices

Current milk prices are considered to be reasonably high and as a result cow prices are higher than normal. If milk price increases further in the next year then cow prices could also increase.

Breed

Friesian cows have traditionally been more expensive than crossbred or Jersey cows. In recent years some dairy farmers with Friesian herds have been able to sell replacement heifers at premium prices to China and Mexico. Also Friesian cull cows are worth more than Jerseys. However, there appears to be little economic justification for the difference in cow prices between Friesians and Jerseys. No relationship has yet been determined between breed and financial returns.

In recent years there has been a significant shift to crossbred cows in an attempt to correct herd health and fertility problems associated with large high-producing pure-bred Friesians.

Production History

Herds with higher production history, either at the factory or on the basis of farm herd recording, tend to achieve higher prices. However,per cow production level is more closely related to feeding (including concentrates) than it is to breeding. The size of heifers at first calving is also important.

Time of Calving

With the vast majority of the herds in the state calving in the spring it is often difficult for autumn calving farms to source cows. As a result they tend to be more expensive.

Whether animal husbandry practices such as drenching and mineral supplementation are included explains some of the variation.