The bullish momentum is most evident at the feeder calf level, with the spring sales season wrapping up with record prices in most saleyards. Values for calves were generally up $80-$100 per head compared to the previous year. Early spring Friesian bull calves in the North Island hit highs of $245-$350 per head, with the most recent top prices for later calves sitting at $150-$250. To illustrate the price surge, the late calf top range this year is equivalent to the peak prices achieved by early spring bulls in 2024.

Moving up the supply chain, the demand for 100kg contracts for black and white bull calves is currently experiencing some initial hesitancy. This slowdown in early demand is attributed to a dry winter and spring in regions like Hawke’s Bay, which has limited crucial grass growth. Despite this, the security offered by these contracts—guaranteeing volume, type, and timing—has led some farmers to sign contracts around the mid $700s. The final value of these contracts, however, will be closely watched as the extra volume of calves reared this year may soon impact the required payment.

The market for yearling Friesian bulls is showing mixed activity, with sales in the North Island described as slower, yet balanced by a significant volume of bulls being transported from the South Island. This inter-island trade is driven by better pricing in the North Island, where the recent AgriHQ Insight report averaged $5.10/kg for 350kg lines and $5.35/kg for 280kg, compared to the South Island’s $4.70/kg for 300kg. While a lack of grass growth is limiting full demand for yearlings, the feasibility of absorbing transport costs to achieve better returns confirms the regional pricing disparity.