Dairy heifers are in short supply – and they’re not the sort of commodity we can restock in a hurry. Read about the ramifications of the heifer shortage on milk yields, dairy product prices and livestock values.

I have had the opportunity to analyze dairy software files from dairy operations across many states in the U.S., and I still see great opportunities to reduce herd turnover costs within many dairy operations. Here are a few areas to consider as you look at how to plan for your future replacement costs.

Heifers remain a significant part of fed cattle population, indicating producers are not yet rebuilding herds.

Quarterly average prices in October hit a new all-time high of $2,600 per head according to estimates from the USDA.

With current milk prices, dairy farmers are trying to lower costs, while optimizing their return opportunities. With the average cost of raising a dairy replacement heifer at over $2,500, according to a 2019 Cornell Cooperative Extension survey, heifer inventory management and raising the right replacements is a critical part of that plan.