Find out why dairy cull cow prices are soaring and what it means for your herd. Can you adjust to these market shifts?
Summary: The rise in dairy cull cow prices has led to a significant shift in the market, with the number of cows sold for beef falling below last year’s levels for 45 weeks. Factors such as fewer cows being slaughtered, decreased supply and raising costs, and reduced feed costs influence culling choices. This new market environment presents both obstacles and opportunities for dairy farm managers. Understanding these trends and reacting accordingly is critical to sustaining profitability in these changing times. Adjusting culling criteria to benefit from the price spike involves considering factors such as productivity, health, and long-term profitability. Cows that don’t achieve milk production objectives should be removed first, but marginally underperforming cows may be advantageous, given the current pricing. Additionally, monitoring health concerns is crucial, as cows with chronic diseases or persistent health issues may cost more in care than they bring in. Actionable tips for adjusting culling criteria can help farms optimize revenue during high cull cow prices.
- The number of dairy cull cows sold for beef has declined for 45 consecutive weeks compared to last year.
- Reduced supply of slaughtered cows has raised cull cow prices.
- Lower feed costs and strategic culling decisions are central to current market trends.
- Farm managers must balance productivity, health issues, and long-term profitability when adjusting culling criteria.
- Cows with chronic health problems or poor productivity should be prioritized for removal.
- Slightly underperforming cows may now offer financial benefits due to high cull cow prices.
Dairy cull cow prices are skyrocketing! According to the latest USDA statistics, June 2024 saw the fewest dairy cull animals shipped to kill since May 2008. With fewer dairy cull cows dying, the market has responded by considerably raising the price of these animals, a pattern not witnessed in more than a decade. This knowledge is vital for dairy producers. The surge in cull cow prices presents both possibilities and problems. Are your present culling criteria still optimal for your herd? It may be time to reconsider your plan to realize the rewards in this unusual market situation.
Lowest Dairy Cull Cow Numbers in June 2024: A Game-Changer for Your Farm?
| Month | Cull Rate (Number of Dairy Cows Marketed for Beef) |
|---|---|
| January 2024 | 45,000 |
| February 2024 | 42,000 |
| March 2024 | 39,000 |
| April 2024 | 36,000 |
| May 2024 | 33,000 |
| June 2024 | 30,000 |
According to USDA statistics, the number of dairy cull cows sold via US slaughter factories in June 2024 is at its lowest since May 2008. This is crucial for several reasons. For starters, dairy producers like you may wonder how this will affect the market and your business choices.
According to the USDA’s July 2024 report, the lower quantity of cull cows has resulted in relatively high cull cow prices. Specifically, the number of dairy cows sold for beef has fallen below last year’s levels for an outstanding 45 weeks [USDA, July 2024]. The continuous trend may be ascribed to many variables, including a reduced milking herd, a restricted supply of replacement heifers, and moderate increases in milk-earning margins.
Phil Plourd, president of Ever.Ag Insights says the causes of the slowdown are varied. With fewer cows being slaughtered, the supply has decreased, raising costs. Experts like Robin Schmahl from AgMarket.Net predict lower culling rates than the previous year owing to variables like beef-on-dairy desire and reduced feed costs influencing culling choices.
This new market environment poses both obstacles and opportunities for dairy farm managers. Will the higher price of dairy cull cows affect your criterion for culling cows in your herd? Understanding these trends and reacting accordingly will be critical to sustaining profitability in these changing times.
Rethinking Cull Criteria: The Price Spike Can’t Be Ignored!
The recent increase in cull cow pricing has shaken things up for dairy producers. Higher earnings from cull cows might give a much-needed financial boost. For many, selling non-productive cows means extra money in your pocket. The USDA Ag Marketing Service’s figures support this, with the lowest cull cow numbers in almost a decade resulting in these price increases.
But it’s not all good. With rising pricing, you may want to reconsider how you choose which cows to cull from your herd. Cows were traditionally culled by age, health, and output levels. However, given the present market circumstances, you may choose to cull differently to capitalize on higher prices.
Adjusting your criteria needs considerable consideration. Experts, such as Phil Plourd of Ever, believe it is critical to balance immediate financial rewards and long-term herd production. According to Ag Insights, this predicament stems from a reduced milking herd and insufficient replacement heifers.
Robin Schmahl of Gerson Lehrman Group suggests that interest in beef-on-dairy crossbreeding and cheaper feed costs may impact your selections. Strategic planning is necessary to maintain a healthy and prosperous herd, even if less harsh culling is used.
Finally, the price increase in cull cows creates both possibilities and problems. It’s time to analyze, capitalize on the market, walk cautiously, and maintain long-term viability.
With Cull Cow Prices on the Rise, How Should You Cull Your Herd?
Given the recent rise in cull cow prices, it’s time to reconsider your culling criteria. Traditionally, culling choices are made based on each cow’s production, health, and profitability. Here’s how you can adjust these factors to benefit from the price spike:
- Productivity: Cows that don’t achieve milk production objectives should be the first. However, given the present pricing, it may be advantageous to remove even those that are marginally underperforming. USDA statistics suggest that even slight drops in production may justify culling in this market.
- Health: Keep a tight eye on any health concerns. Cows with chronic diseases or persistent health issues may cost you more in care than they bring in. When the price of these animals is high, it is economically prudent to slaughter them quickly.
- Long-term profitability: Examine each cow’s total production trend. A cow with declining productivity is less likely to be lucrative in the long term. With high cull prices, this might be the most significant moment to sell these cows.
Actionable Tips:
- Regular Evaluations: Make periodic evaluations of your herd. Monthly or bimonthly assessments might help you rapidly identify underperforming cows.
- Health Monitoring: Set up a thorough health monitoring system. This will help you to discover problems early on and make calls at the best moments.
- Utilize Technology: Invest in herd management software that monitors productivity and health indices, delivering data-driven insights for more informed culling choices.
- Diversify Revenue Streams: Consider offering beef-on-dairy crosses, which are becoming more popular and may give another profitable avenue.
Using these practical ideas to adjust your culling criteria might help your farm optimize revenue during high cull cow prices.
The Future of Culling: Strategic Decisions in the Face of High Cull Cow Prices
“The current high prices for cull cows are making me reconsider my approach to culling,” says Krissa Welshans, a veteran cattle farmer from Henrietta, Texas. “It’s not just about clearing out the less productive animals anymore; it’s become a strategic decision that affects our bottom line.”
Industry analyst Phil Plourd, president of Ever.Ag Insights agrees: “Several factors, such as a smaller milking herd and limited replacement heifers, contribute to this trend.” Milk income margins have also improved somewhat. [source: Big milk checks and low feed costs: A profitable summer for dairy producers]
Meanwhile, AgMarket.Net’s Robin Schmahl adds another perspective: “Culling will likely continue but at a lower rate than previous years, influenced by beef-on-dairy interest and reduced feed prices.” [source: Navigating the Waves: Dairy Producers Defy Challenges to Keep Barns Full Despite Soaring Milk Prices and Adverse Conditions]
The Bottom Line
After investigating the significant decline in dairy cull cow numbers and the resulting price increase, it is evident that market dynamics are changing. Smaller milking herds, restricted replacement heifers, and higher milk-earning margins all contribute to these developments. Experts like Phil Plourd and Robin Schmahl emphasize the complexities of these developments, stating that each farm’s plan must be carefully considered and adapted. Keeping up with market trends isn’t just advantageous; it’s essential. Changing your culling criteria to reflect current circumstances may have a significant financial effect on your farm. Remember that today’s actions may have an impact on the long-term viability and profitability of your business. With these insights, how will you handle the ever-changing dairy farming landscape? Will you change your culling techniques to keep up with growing costs or stick to your original criteria? The decision is yours, but one thing is sure: alertness and adaptation are required.
Learn more:
- Big Milk Checks and Low Feed Costs: A Profitable Summer for Dairy Producers
- Navigating the Waves: Dairy Producers Defy Challenges to Keep Barns Full Amid Soaring Milk Prices and Adverse Conditions
- US Dairy Farmers’ Revenue and Expenditure rose slightly in March
