Increased demand for milk and cattle is good news for the dairy industry.
Prices for good commercial heifers are $2,500 to $3,000, compared to two years ago when sellers were struggling for bids, said Ontario dairy producer Scott Brether. His family milks 1,200 cows at a farm near London and another 80 at Guelph.
“We saw the Ontario turnaround start in May and in Alberta interest started to steam up this fall,” he said while attending the Westerner Dairy Showcase sale at Red Deer.
The high seller at the Westerner sale was $7,000 and the sale averaged $3,155 on 60 head.
Read Also
University of Manitoba hires potato researcher
A new research chair position at the University of Manitoba will tackle sustainability in the potato industry.
Brether attributed the renewed interest to greater demand for milk and dairy products such as ice cream.
In response, the milk solids national quota increased 4.5 percent between August 2006 and 2007, according to the Dairy Farmers of Canada.
“There is a global milk shortage and people are talking about the prices going up because they cannot keep up with demand,” said Therese Beaulieu of the dairy group.
That has producers looking for heifers as well as fresh young cows ready to go to work, Brether said.
Rick McRonald of the Canadian Livestock Genetics
Association said animal sales have been strong, fueled by international demand after losing markets due to the BSE trade ban.
“We have been through four and a half years of hell during which time our heifer industry disappeared,” he said. “There is a lot of excitement because we are getting back our access.”
Everyone had their sights set on the U.S. border opening Nov. 19 because when the Americans start accepting breeding stock from Canada, Mexico will follow.
“Once the North American market is functioning properly, other markets will open up,” McRonald said.
Live sales scheduled for this fall are generating more inquiries than in the past and considerable interest is directed toward the Royal Winter Fair in Toronto.
