Farm expert warns graziers to review demand
Demand for grazing may reduce up to 25%.
The decline in dairy sector prices is likely to affect grazing support farms too.
Dairy farmers are reducing feed costs by culling the bottom 5-10% of their herd.
Older cows, late calvers and poor producers are being killed, according to Crowe Horwath agribusiness specialist Haylee Preston.
This allows more intense farming systems to cut back on supplemental feed costs, and there will be less demand for off-farm grazing, she says.
There could be a 20-25% reduction in cows needing grazing for the 2016 winter, due to more self-sustaining dairy systems and the heavy culling of herds, especially with favourable beef prices, Ms Preston says.
In addition, more farmers may carry their young stock to 18 months themselves to cut costs rather than off-farm grazing.
Ms Preston is advising graziers to speak to their agent or herd owners sooner rather than later to understand their requirements for 2016 winter grazing.
She says it’s important to sign contracts before sowing winter crops.
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Chris Hutching
Mon, 07 Sep 2015
Mon, 07 Sep 2015
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Farm expert warns graziers to review demand
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