Dairy cattle flood market as drought bites

At least one livestock agent has also received inquiry from a farmer who wants to sell the entire herd.

Agriculture Victoria has issued a reminder to farmers who are reducing numbers that it is important their cattle are ‘fit to load’.

AgVic livestock industry development officer Hannah Manning said the body condition of livestock needed to be considered when making a decision about when to sell cattle.

“Animals can have long transport journeys ahead of them, depending on the buyer,” Dr Manning said.

“Careful planning and preparation is needed to ensure their welfare is appropriate managed.”

Dr Manning also reminded transport operators they had a responsibility to ensure cattle were fit to be transported.

She said this responsibility extended through to livestock selling agents and buyers.

Information to help farmers assess their cattle is published in the ‘Fit to Load’ standards on the Agriculture Victoria website and Meat and Livestock Australia’s national guide, ‘Is the animal fit to load’?

The same information is applicable if cattle are being transported to or from agistment.

The government warning was issued as drought has seen thousands of dairy cows sold in the last couple of months through the Victorian Livestock Exchange at Koonwarra.

Livestock agent Roger Tweddle said the increased number of dairy cows has seen agents ask their beef clients to hold back sales or send their cattle to Yea to be sold.

In April and May, thousands of dairy cows have sold through several cattle sales at Koonwarra VLE.

The volume sold has also raised concerns about the potential for herd recovery whenever the drought breaks.

“We weren’t able to turn back the dairy cattle that have been coming onto the market,” Roger Tweddle said.

“Everyone is pregnancy testing and culling everything they can to take the strain off.

“I’ve got clients who are running out of water and can only feed what fodder they can buy.

“Other vendors have held cattle back from sale or have sent their beef cattle to Yea, to attract the interest of buyers from northern NSW.”

Even that market is restricted, after recent flooding in NSW.

In the past couple of months, the Tuesday store market at Koonwarra VLE has seen more than 3500 cattle through it each week, with the market on May 6 yarding 4028 head, including 2000 cows.

The volume of cows sold is despite the cost of transport.

“It costs $2.50/head to truck your cattle from Warragul to Koonwarra,” Roger said.

Cows represented more than half of the total yarding of 3527 head in the sale on April 29. On April 8, of the total yarding of 3532, more than 1500 were cows.

The weight of numbers has seen prices and demand soften.

On May 13, light to medium weight dairy cows sold as low as $0.40¢/kg, while medium weight cows (400-520kg) sold down to $0.80¢/kg.

“Top pens of Friesian cows in good condition sold at $2.22/kg, down from $2.80/kg the previous week,” Roger said.

“Then the price went down to $0.15/kg for cows weighing 450kg.

“Friesian steers, 350kg, sold at $1.50/kg.”

Roger said he had received an inquiry from one farmer who wanted to sell their entire milking herd.

Peter Young, a dairy farmer at Buffalo, is one of many farmers who have dried off the milking herd early to conserve fodder, water supply and cash.

“Drying the cows off early makes money tight,” Peter said.

“I dried off the herd one month early for spring calving, but I have to keep the numbers steady now.

“I can’t continue to sell cows at the prices they are, and then be able to turn around and restock when conditions improve.”

Peter sold empty cows in good condition, through the Koonwarra saleyards in May, with the best selling at $800 and those in lesser condition selling for $50 each.

Peter said he has to retain 350 milkers in his herd, after calving begins, in order to service his debt level.

Mick and Paula Hughes of Inverloch sold empty cows earlier than planned.

“If fodder continues to get harder to source and we have to buy water, we’ll definitely be selling more cows,” Mick said.

Livestock agent Nicky Reeves said dairy farmers in the Macalister Irrigation District were selling surplus cows as fodder supplies tightened up.

“Prices had dropped up to $0.50/kg from the ‘cow flooding’ effect,” she said.

Other saleyards are pushing through potential record numbers of cattle.

Wagga livestock agent Isaac Hill told ABC radio that the numbers of yarded cattle grew as drought increased its effect on Riverina farmers in the last few months.

“A lot of producers have no water, and are sending their cattle into market,” Isaac said.

“Those with water are making decisions affected by the lack of fodder.

“Farmers are paring back their herds to manageable levels where they can invest in fodder.

“We have a lot of clients in the eastern NSW region who, if it rains today, won’t have feed until [spring].”

Isaac said that areas of NSW and Queensland have had significant rain, and the potential for recovery in the Channel country is seeing producers capitalising on the opportunity for buying cattle in the southern states.

Cattle in plain condition remain hard to sell.