A jump in the price and number of dairy cattle sold during a key sales period this year are signs of strong confidence in dairying, says PGG Wrightson.
But national dairy manager Brian Robinson also said some of the extra demand for stock was probably fuelled by fewer cows calving
due to stress associated with larger herd sizes.
The company yesterday reported sales of more than 60,000 cattle were settled on May 31 and June 1, about 10 per cent more than the number sold by PGG and Wrightson in the same period last year.
Average cow and 2-year-old heifer prices rose about $100, to $1210 and $1100 respectively.
Robinson said the figures showed strong underlying confidence in dairying.
"Everyone's talking doom and gloom but the dairy farmers seem to be still spending."
Increased sales volume reflected growth in the country's dairy herd, continued conversion of land to dairying and farmers expanding their herds.
Robinson said herd sizes in general were up, which could stress younger cows in particular as they competed for food, affecting their ability to produce calves.
"There was unfortunately a higher incidence of empty cows through the past summer and autumn which, of course, stimulates demand for replacement animals."
