Why are dairy heifer and calf prices soaring this summer? Find out how heat, avian flu, and scarce replacements are affecting your bottom line.
Summary: The dairy industry is experiencing a significant price hike for dairy heifers and calves this summer, with Holstein springers approaching $3,000 per head, nearly double from last year. Beef-cross calf prices are also rising, with newborn calves commanding $700 or more per head. Key reasons for the price increase include hot weather, the ongoing war against avian influenza, and a scarcity of replacement heifers. Hot weather causes cow heat stress, reducing milk output. Avian influenza restricts the movement of livestock, such as heifers, and stringent quarantine measures can indirectly affect various livestock industries, reducing the availability of replacement heifers and straining market supply systems. The scarcity of replacement heifers is a major cause of rising pricing, as they are critical for ensuring ongoing milk supply. This is a critical time for dairy producers to examine their operations, how these costs will affect their bottom line, and how their farms can respond to these market changes.
- Holstein springer prices have doubled from last year, nearing $3,000 per head.
- Beef-cross calf prices are also on the rise, with newborns fetching $700 or more per head.
- Hot weather is causing heat stress in cows, leading to decreased milk production.
- Avian influenza impacts livestock movement and quarantine measures, indirectly affecting heifer availability.
- Scarcity of replacement heifers is a significant factor driving up prices.
- Dairy producers need to assess the impact of rising costs on their operations and explore strategies to adapt.
Have you observed the soaring costs of heifers and calves this summer? This isn’t a coincidental observation; dairy heifers and calves are fetching historic prices, with Holstein springers approaching $3,000 per head—nearly double from last year. Simultaneously, beef-cross calf prices are skyrocketing, with newborn calves commanding $700 per head and higher. What does this imply for you and your dairy business?
The Who, What, When, Where, Why, and How of Soaring Heifer and Calf Prices
Who: The latest market developments have significantly impacted dairy producers throughout the country.
What: The main event is a significant price hike for dairy heifers and calves. Holstein springers, for example, are witnessing price increases of up to $3,000 per head.
When: These skyrocketing costs will be documented throughout the summer of 2024.
Where: Turlock, Calif., Lomira, Wis., Pipestone, Minn., and New Holland, Pa. have all seen this pattern.
Why: The key reasons for the price increase include hot weather, the effect of avian influenza, and a lack of replacement heifers.
How: These factors contribute to limited milk supply, which raises demand and prices for heifers and calves. Increased demand indicates strong market conditions for dairy producers eager to sell.
The T.C. Jacoby Dairy Market Report Sheds Light on Compelling Trends
The T.C. Jacoby Dairy Market Report reveals intriguing patterns, suggesting that Holstein springers have skyrocketed to unprecedented price levels, reaching $3,000 per head this month. This amount is about twice the levels reported a year ago, indicating a robust upward market change. Beef-cross calf prices are also rising nationwide, with newborn calves selling for $700 or more per head.
Hot weather, the continuing war against avian influenza, and a scarcity of replacement heifers have all contributed to a constrained milk supply, which has fueled these healthy pricing trends. Pipestone Livestock Market mirrored similar comments, stating “robust markets and lots of demand for open heifers,” as seen in early August.
| Location (sale date) | Springing Heifers Supreme/Top | Springing Heifers Approved/Medium | Heifer Calves 90-120 pounds | Heifer Calves 60-100 pounds | Beef Cross Calves |
|---|---|---|---|---|---|
| Turlock, Calif. (8-2-24) | $2,500-3,250 | $1,800-2,400 | – | – | – |
| Lomira, Wis. (8-2-24) | $1,500-2,200 | $1,200-1,400 | $380-500 | – | $720-1,010 |
| Pipestone, Minn. (7-18-24) | $3,100-3,300 | $3,000-3,100 | No test | – | $750-925 |
| New Holland, Pa. (7-22-24) | No report | No report | No test | – | $800-1,100 |
Prices for springing heifers are much higher in Pipestone, Minnesota, compared to Lomira, Wisconsin, and Turlock, California. Lomira, Wisconsin, is the sole place that offers precise pricing for heifer calves. New Holland, Pa., has the most fantastic range of beef-cross calves, showing strong market demand.
What’s Driving the Soaring Heifer and Calf Prices? The Triple Threat You Need to Know About
The recent spike in dairy heifer and calf prices can be attributed to three critical factors:
Hot Weather
Hot weather has an evident influence on dairy output. High temperatures cause cow heat stress, which drastically reduces milk output. Numerous studies support this occurrence; for example, a University of Minnesota research indicated that heat stress may reduce milk supply by up to 10-30% [University of Minnesota Extension]. Reduced milk yields reduce supply, raising prices.
Avian Influenza
Although avian influenza predominantly affects poultry, the effects extend across the cattle industry. The viral epidemic has led to increased farm biosecurity measures, restricting the movement of livestock such as heifers. The USDA states that “stringent quarantine and containment measures can indirectly affect various livestock industries.” This reduces the availability of replacement heifers and strains market supply systems.
Scarcity of Replacement Heifers
The lack of replacement heifers is a major cause of rising pricing. Replacement heifers are critical for ensuring ongoing milk supply; without them, existing herds would age without new animals to take their place. According to USDairy’s current statistics, replacement heifer availability has decreased by around 15% from the previous year. Scarcity and increased demand have increased market prices for available heifers and calves.
The Bottom Line
As we’ve seen, the sky-high prices for dairy heifers and calves reflect a persistent tendency in the dairy business. The market has produced possibilities and problems for farmers throughout the country owing to extreme weather conditions, an avian influenza epidemic, and a lack of replacement heifers. The pricing dynamics are altering, with Holstein springers commanding upwards of $3,000 per head and beef-cross calves selling at high prices.
The T.C. Jacoby Dairy Market Report emphasizes the importance of these issues, predicting that tighter supply and strong demand will continue to define future estimates. This is a critical time for dairy producers to examine their operations. How will these skyrocketing costs affect their bottom line? Can their farm respond to these market changes? Navigating these concerns will be critical for dairy producers’ planning for the next months.
Learn more:
- Big Milk Checks and Low Feed Costs: A Profitable Summer for Dairy Producers
- Can Hot Weather Boost Milk Prices? Exploring Dairy Market Trends
- Dairy Farmer Alert: Maximize Profits with Sky-High Milk Revenues Despite Supply Constraints
