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Dairy Crisis Pressures Cull Cow Trade

12 August 2015

UK – Dairy sector difficulties and a weak euro have begun to erode cull cow prices in recent weeks following a “remarkably stable” first half of the year.

According to the Agriculture and Horticulture Development Board, strong demand for cheap beef cuts supported UK cull cow values from New Year into early summer, although this has taken a recent turn.

“This is most likely linked to an increase in the supply of cows for slaughter, largely on the back of the challenging market conditions in the dairy sector,” said AHDB.

“Although lower feed, fertiliser and fuel prices will have countered some of the difficulties for a few producers, for most these remain challenging times.”

AHDB said reports suggest dairy farmers are culling out more unproductive animals to make better use of grazing for higher yielding cows.

Furthermore, AHDB analysts stressed the role of the euro in hampering exports, with the July euro being worth around 70 pence, eight pence down on June.

TheCattleSite News Desk

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