WITH the current imbalance in the world supply and demand for liquid milk and the resulting fall in farm gate prices it is surprising that we have not seen a large number of dairy dispersals in the South West this spring.

Dairy auctioneer Andrew Clements, of Greenslade Taylor Hunt, believes there are at least two main reasons for this. The first being the determined motivation of UK dairy farmers who have invested heavily in the industry and will do their utmost to batten down the hatches and make it through these turbulent times and the other increasingly significant factor being TB.

“Through our regular contact with dairy farmers at Sedgemoor we are increasingly hearing of more and more farms being under TB restriction,” says Andrew.

“This means that many simply cannot disperse their herds without facing the financial discounts that come with selling under restrictions and this is only if they can overcome the ‘red tape’ imposed on the trading of TB restricted stock which is making such sales almost impossible.”

Greenslade Taylor Hunt has conducted a number of on farm dairy dispersals under TB restriction with success. The correct marketing ensures prices achieved can be pleasing. Sedgemoor Auction Centre also runs monthly orange markets for store cattle, fat cattle and barren cows under restrictions which can see prices dependent on quality and age of stock reaching unrestricted levels.

With new cases of TB arising all the time on holdings that previously have had no TB history, there is also a restriction on cattle purchasing. This obviously affects the trade for replacements with farmers keen for stock but unable to purchase. There are other side effects associated with being under TB restrictions - not being able to take full advantage of the current buoyant calf market and in fact often becoming overstocked with unwanted bull calves that are only able to trade at severe financial discounts!

In conclusion although the dairy industry is facing all the difficulties that come with such a significant drop in milk price the current trade is holding up remarkably well, due in part to the lack of supply that we have seen this spring.

There is no doubt there are many people considering their future in the dairy industry and if all those that wish to sell have a clear TB test the trade for the autumn could be interesting, however the level of TB that we are currently seeing across the South West will play its part and certainly have a bearing on the dairy trade.

To contact Andrew about potential cattle sales please ring (01278) 410250 or email andrew.clements@gth.net