The values for dairy this year have seen a significant increase across both female and male classes. The increase can be attributed to very strong commodity prices for dairy products resulting in strong demand for Dairy cattle. Strong commodity prices and the reframing or relaxation of some environmental factors have seen renewed interest in dairy conversions in parts of the South Island which may drive further demand.
A Mixed Age Dairy cow now has a National Average Market Value of $2,111 compared to $1,609 last year – a rise of 31.2%. Rising one and two-year heifers have increased in value by 49% and 27.4%, to $1,007 and $1,826 respectively.
The outlook for the farmgate milk price remains strong due to tight supply in the EU and Australia, robust demand and a weaker NZ dollar. On farm costs remain high but falling interest rates are easing financial pressures. We are unlikely to see the same level of increase in livestock values again next year with values close to the highs seen in 2008 and 2012.
Disclaimer: This blog has been carefully prepared, but it has been written in general terms only. The blog should not be relied upon to provide specific information without also obtaining appropriate professional advice after detailed examination of your particular situation.
