Weakening milk prices and tightening income margins kept the lid on U.S. average prices for dairy replacement cows again, according to latest quarterly estimates from the USDA. Meanwhile, average cull cow prices continued to climb.
U.S. replacement dairy cow prices averaged $1,720 per head in April 2023, unchanged from January 2023 but up $150 (about 10%) from April 2022. Quarterly average prices have now averaged $1,720 over the past four quarters, about 19% below the last peak of $2,120 per head in October 2014.
The USDA estimates are based on quarterly surveys (January, April, July and October) of dairy farmers in 24 major dairy states, as well as an annual survey (February) in all states. The prices reflect those paid or received for cows that have had at least one calf and are sold for replacement purposes, not as cull cows. The report does not summarize auction market prices.
Despite the steady state of the overall average, quarterly prices for replacement cow prices were up in 18 of 24 major dairy states (Table 1). Largest quarterly increases were in Florida, Idaho, Ohio, Texas and Washington. Offsetting those higher prices were declines in California, Kansas and Pennsylvania.
Compared to a year earlier, April 2023 replacement cow prices were up $250 or more per head in five states: Florida, Indiana, New Mexico, South Dakota and Virginia.
Progressive Dairy’s Cattle Market Watch tracks dairy heifer prices from about 20 auction markets throughout the U.S., with price summaries updated about every two weeks. The listings cover top and medium springers, short-bred and open heifers, and heifer calves.
Market cow prices rise
With a month lag in reporting data, U.S. average prices received for cull cows (beef and dairy, combined) in March 2023 averaged $95.70 per hundredweight (cwt), up $6.20 from February and the highest monthly average since September 2015.
The tight milk income margins were incentive for increased U.S. dairy cull cow marketing, pushing the March 2023 total to its highest level since 1986, the year of the whole-herd buyout program.
