Dairy Cattle

With the exception of breeding bulls, all classes of dairy cattle have dropped in value compared to the previous year. A mixed age dairy cow now has a national average market value of $1,529 compared to $1,649 last year – a drop of 7.3%. Rising two-year heifers have dropped by a similar percentage to $1,313. Rising one-year heifers have a larger decrease of 15.6% to $691.

If you recall, there was a very high demand for R1 heifers 12 months ago which inflated that value at year end. This demand has now eased off and the value has dropped back accordingly.

There is certainly some variability throughout the country regarding mixed age cow prices. While the milk price remains strong and potentially increasing, there is obvious nervousness in the industry given the recent outbreak of Mycoplasma bovis cattle disease. The culling of herds in the South Island may push local values up – although due to restriction on stock movements and farmers' reluctance to introduce new cattle to their herd, we really do need to take a "wait and see" approach regarding where values are heading in the future.

As the herd value is a country-wide average, we need to consider each client's circumstances when buying and selling herds and look at what these average values mean for you.

See dairy cows 10-yr graph ...

Sheep

2018 has seen another rise in sheep values with an average increase of 15.5%. A two-tooth ewe is now valued at $179 compared to $150 in 2017. There are good feed supplies throughout the country at the moment which is allowing producers to add weight to their animals and benefit from an increase on price. Confidence in the sheep market is definitely buoyant.

See ewes 10-yr graph ...

where we are in the cycle of livestock values (eg at the bottom, or at the top)

if the increase is a permanent or a temporary one

your longer term intentions

Kind Regards

The team
Ean Brown Partners Limited