Replacement Heifer Values Reach Multi-Decade Low
As milk prices continue to struggle, the value of dairy replacement heifers is struggling too. In fact, the value of a Holstein replacement heifer is currently at a historic low.
The price being paid across the country for quality Holstein springers has averaged $1,200 per head over the past month, putting the cost of replacement heifers at lows not seen in decades, according to Sarina Sharp an analyst with the Daily Dairy Report.
“Low springer values imply that the supply of heifers for sale outweighs demand, and that suggests producers have little appetite to expand their herds. This could set the stage for a contraction in the U.S. milk herd,” Sharp says. “But given the opportunity for producers to replace cows inexpensively, production per cow is likely to remain high.”
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