Auction Prices Boom for Dairy Beef Calves

Auction prices for beef-type calves and other categories have hit record highs, and the meaty trend is expected to continue for a while.

According to Dave Wert, president of Ag Market News — a service that tracks livestock auction prices in Pennsylvania and Maryland — supply and demand, especially with beef cross and Holstein bull calves, is the driving force.

“There’s just not enough to go around,” he said. “Beef-type calves are bringing up to $8 (per pound), so dairy farmers are breeding their cows with Angus. In turn, there are fewer Holstein calves, so they’re going up to.”

As of Feb. 12, beef cross calves brought $6.50 to $8 per pound at some auctions. Considering a week-old animal may weigh around 100 pounds, the profits have never been better for farmers. The price for Holstein bull calves has also skyrocketed, Wert said, climbing from an average of $1.50 per pound a couple years ago to a high of $5 per pound today.

These calf prices have created a ripple effect through the auction market. Wert said slaughter cattle were bringing more than $2 per pound at one point, and utility calves — those that usually go to slaughter right away — are now being purchased by buyers with the intent of finishing the animals.