Export heifer market collapses

• Winnaleah farmer Mark Kerr had an order of 200 calves cancelled when the export heifer marker collapsed last month. 

May 3, 2023

By Taylor Clyne

For the first time in more than three decades the friesian heifer export market has come to a grinding halt leaving local farmers with surplus cows heading into winter and no buyers in sight. 

Prior to the rug being ripped from under the market, dairy farmers were seeing record highs with orders peaking at $2700 per pure bred heifer aged between 6-12 months and over 200kgs.

Tasmania Livestock Services agent Owen Rowlings said he had cows to be sent in May at the top price before all orders were cancelled. 

“All of these cows are exporting to China, Tasmania alone probably sends between 8,000 and 10,000 heifers a year so it’s a huge impact,” he said. 

“Everything has been cancelled and as of today there are no orders at all pending across Australia.  

“I think it’s happened as a sort of price correction but also because the demand for cows in China isn’t as high – they are culling cows because the cost of production against their current milk price doesn’t match.

“This hard warning is a clear example of how they [Chinese] control the market. 

“The perks are that they like our breeding and breeding programs, but they have the power if you want a buyer.”

Mr Rowlings said he remembers this happening only once around 30 years ago when the market completely stopped for two to three months when prices were peaking.

“I guess it’s a waiting game but once upon a time farmers would send 20-30 cows if they had spares and if they didn’t, they wouldn’t send them, but these days people are breeding for the purpose of export.”

Winnaleah farmer Mark Kerr said he had an order of 200 heifers to be sent a fortnight ago that was pulled and he’s not alone.

“I guess the hardest part, like everyone, is we were banking on that money coming in.

“Knowing you’ve got that coming through you put a bit more fertiliser on, buy a bit more feed and feel comfortable putting money into your business.

“Over the years prices have fluctuated and dropped but I’ve never seen it be completely cancelled like this.”

Mr Kerr said once the export market was considered the ‘cream’ for your business but now it’s come to be something farmers rely on. 

“Coming into winter the grass doesn’t grow and we’re not feeling good about having to feed another 200 mouths, it’s going to be a cost and when the market comes back online the Chinese are going to get better calves that are older, bigger and more productive for probably a lesser price.

“I would prefer a more sustainable and secure price going forward,” he said.

For now, the waiting game continues costing farmers by the day.

“I had a phone hook up last week and it doesn’t look like it will be returning in this financial year,” Mr Rowlings added.

When it does return the price is looking likely to be around $1000 per cow, a price that may just cover the cost of rearing it.