High and stable beef prices leading to high calf prices are the biggest opportunity for dairy farmers at present, according to Teagasc head of animal and grassland research Laurence Shalloo.
Speaking at the Teagasc national dairy conference in Tipperary on Tuesday, Shalloo said high beef prices will help dairy farms as milk prices fall.
“A couple of years ago, when we were looking at calves, the industry was looking at them as a problem.
“How stupid were we? Calves are now probably one of the biggest opportunities we have in the industry today,” he said.
“Calf price and cull cow price is going to be really important in terms of family farm income next year and we need to lean in to exploiting that opportunity.”
Dairy replacements
Shalloo said that while increasing the commercial beef value of calves is important, farmers also need to be sure that they are producing enough dairy replacements and referenced a drop in dairy heifer numbers over recent years.
Speaking at the conference in Clonmel via video link, UK based market analyst Chris Walkland said that he expects milk prices to stay low until the middle of next year.
“If I get all of the forward prices I can get and put them into a big milk price feeder wagon, turn the handle and spit out the price, what I’m getting is a range of prices from 37c/l down to 36c/l between now and next May”, he said.
Walkland said that these are the best estimates for milk price in the UK converted to euro.
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