Dairy heifers sell for up to £3,100 at Dungannon

Last week’s sale of freshly calved dairy heifers conducted by Taaffe Auctions in Dungannon Mart saw prices peak at £3,100.

The top-priced heifer, bred by the McCormick family from Co Down, was placed reserve champion in the pre-sale show.

In total, 58 heifers and 14 cows came under the hammer. Almost all lots were sold, and with a relatively positive mood among buyers, bidding was brisk.

Most buyers were trying to work to an upper price limit with the majority of sales around the £1,600 to £1,800 mark.

Most heifers offered for sale had calved in the previous three weeks and were yielding 35 to 40 litres daily.

However, several animals with noted pedigrees sold for well over the £2,000 mark.

The McCormick family sold other heifers to £2,500 while R McLean, Dungannon, realised a top price of £2,900 for a heifer calved just over one month.

A number of non-pedigree-registered heifers presented for sale made just over £1,700.

Some second-calving cows were also offered, and sold from £1,400 to a top price of £2,220 for a cow calved two weeks and yielding 44 litres. The cow from the McLean family yielded almost 11,000 litres during her first lactation. Two pedigree bulls sold for £2,600 and £1,650.

Converging UK milk prices

Milk prices in Britain have been increasing month on month since September as processors begin to pass on the higher market returns.

While there has been much talk of improving auction prices, and spot milk prices in Britain of 40p/l, the analysis suggests that processors there are paying standard base prices on a par with those in NI this autumn.

Shown below is a range in base prices to be paid for milk supplied to a selection of processors based in Britain in December.

  • Arla: 24.63p/l.
  • Freshway: 25.05p/l.
  • Fresh Milk Co (Lactalis): 25.97p/l.
  • Direct Milk: 22.93p/l.
  • Yew Tree: 24.5p/l.
  • Muller (non-aligned): 22.94p/l.
  • Dairy Crest: 26p/l.
  • All volume, hygiene and milk quality top-up payments have been excluded.

    There are also some processors who offer a standard A price, with a B price for extra litres.

    Given where the spot market is currently at, a number of these B prices have moved over 30p/l.

    There are also some supermarket-aligned contracts significantly above current base prices, and various bonuses and penalties, which apply linked to volume each month. It makes direct comparisons difficult.

    However, while base prices have converged in recent months, it comes after a period of nearly two years when average prices paid in Britain were significantly ahead of those in NI.

    For example, during 2016, the average milk price paid in NI dropped to a low of 17.7p/l in May, yet in Britain, average prices as recorded by the Agriculture and Horticulture Development Board (AHDB) did not dip below 20p/l.

    In 2015, average NI price went as low as 19.87p/l in December, while in Britain the lowest average recorded was 24.13p/l in August. Across all of 2015, the difference in average prices recorded by AHDB between NI and Britain was 4.27p/l.

    Meanwhile, the improved market sentiment at present has been reflected by Stranraer based Fresh Milk Company (Lactalis), which has indicated to its 140 suppliers a minimum base price on liquid milk of 27.5p/l throughout 2017.

    Should the market price improve beyond the minimum price agreement, the company has said that it will pass this back to members.