Calf Rearing has never looked better
Calf rearing profitability will be as good or better than 2001, as key input costs are down $80 per calf, says Rev Crawford, Business Manager of NRM New Zealand. For example Calf Milk Replacer has dropped $30 per bag, and four day old calf prices are down $55 per head, compared with last season.
Whilst expected returns for weaners are back on last season - calf rearers with October/November contracts are receiving around $370 for 100kg weaners, down from $450 last year - the global beef market outlook has firmed and looks stable, with no significant herd rebuild expected in the USA.
In recent weeks there has been murmuring in the market in relation to the profitability of rearing calves this year. Some commentators claim the high cost of calf rearing last season has continued over in to 2002, meaning lower profitability this season, given a reduced 100kg weaner price expectation. However, the table below shows the $80 reduction in costs outweighs the lower price expected for 100kg weaners this year.
Calf rearing profitability 2001 2002*
Four day old bull calf $165 $110
calf milk replacer (20kg) $100 $70
calf feed (75kg) $66 $70
other costs, mortality $30 $30
100kg weaner sale price $450 $370
The value of bobby calves has dropped substantially, with some schedule pricing 50% lower than last year. Export veal, leather and vell pricing are back significantly, and the exchange rate has also dragged down last season’s record prices.
The bobby calf schedule drop has a flow-on effect to prices paid for dairy beef calves, with some calf rearers purchasing quality four day old bull calves for $100- $120 per head this season, compared with over $165 last season. Four day old calf prices are expected to decline below $100 later this year.
Crawford summarised calf rearing profitability this season “provided rearers can purchase bobby calves for under $120 this season, the 2002 season looks as profitable as ever. In fact, given the current milk payout, dairy farmers should think about rearing extra calves this Spring to improve overall farm profit”.