About 650 yearling and second year bulls were sold at the auctions in addition to private sales.
Prices were up about $300 on last year, indicating strong demand for easy birthing and low birth weight beef bulls, particularly herefords, for crossing with dairy cows.
Equally topping prices were Ardo Herefords from Marton, Riverton Herefords of Whanganui and Shadow Downs Waverley for two-year-old bulls at $3100.
PGG Wrightson (PGG) Livestock national genetics Manager Callum Stewart said dairy farmers were using yearlings and two-year-old bulls with beef bloodlines to produce beef cross calves and boost their incomes.
«We have seen a major lift in prices on last year and people are breeding a beef product and selling it as a four day old calf and getting real value for money to help the funds of farming.»
He said four to five day old bull calves had been selling for $250-$350 and that was better than a bobby calf making $30 to $40.
Heifer calves were making $100 to $120 and that was giving another income for dairy farmers catching up on previously low payout years, said Stewart.
«Funds are very tight at this time of the year for a dairy couple and it’s putting a smile on their face because they are getting money in their pocket.»
Yearling and two-year-old bulls were being placed over first calving heifers rather than jersey bulls for the extra beef earnings.
Stewart said the bull market was likely to remain in good shape as there was a «massive» shortage of beef and dairy numbers.
Beef bulls were in demand to «tail off» remaining cows after a herd had gone through artificial insemination.
He said dairy farmers seemed to like white faced hereford bulls for mating to dairy herds, but angus bulls also had a place in the market. Dairy farmers were looking for bulls that could pass on easy calving and low birthweight genetics.
Some studs were splitting herds to cater for the dairy and beef markets.
«There are people doing that. They can do it and you just have to manage and specifically target both markets.»
Dairy farmers had the option of acquiring bulls for three months, costing them $50 a month in a buy and re-sell deal with PGG.
«They don’t want bulls hanging around all year and just taking up another paddock that could be used,» said Stewart.
He said the October bull sales were mainly for the dairy market with sales for hill country beef in June.
Beef prices remained strong and commercial farmers were still buying in a strong market, he said.
However, beef prices appear to have come off their high.
Sales included: Ranui Angus, Whanganui 22 sales from 22 bull yarding, average $2500, top yearling heifers at $1550, 35 heifers averaging $1180, Pine Park Angus, Marton, 25/27 two-year bulls at $2200, 10 yearling bulls at $1500 average, Ardo Herefords, Marton, 38 two-year bulls at $3100, 90 yearling bulls averaging $2625, Riverton Herefords, Whanganui, 25 two-year bulls at $3100, 109 yearling bulls at $2950, Shadow Downs, Waverley, 43 two year bulls at $3100
15 yearling bulls $1900 average, Mangaotea, Taranaki, 180 herefords/angus/jerseys/friesian/murray gray two year bulls, herefords $2957, murray gray $2700,
angus $2310, jersey $1882, friesian $2156, yearling angus $1942, murray gray $2050, jersey $1215.
Source: Stuff
Link: http://www.stuff.co.nz/business/farming/agribusiness/85067722/dairy-factor-boosting-young-beef-bull-prices
