On dairy farms, mud and manure come with the territory. But, lately, where there's muck there's money.
No longer the poor relations of primary industry, Victoria's dairy farmers are getting record prices for milk — and paying record prices for the cows that produce it.
Farmers are bidding up to $3000 for young cows, as an increased demand for milk and a shortage of animals shake up the industry.
Prices set in recent weeks are nearly double those paid for similar animals last year, according to Gippsland livestock agent Terry Ginnane.
Herds selling for about $800 to $1200 a head last year are now fetching between $1400 and $1800.
"Dairy cattle prices have been pretty well as high as they've ever been," Mr Ginnane said.
"They're nearly twice as good as they were last year. It all depends on the age of the cattle, their condition and when they are going to calve and start producing milk."
Mr Ginnane said the $3000 paid last week for Holstein Friesian cows was a "very, very good price".
United Dairyfarmers president Doug Chant said the drought had forced dairy farmers to cut cow numbers that now had to be replaced.
Farmers wanting to rebuild herds have boosted bidding for limited stock.
Competition for cows comes as farm-gate milk prices reach historic highs of up to 47¢ a litre.
"Dairy farmers have sold a lot of their stock to downsize their herds in order to be able to feed what cattle they kept to get them through the drought," Mr Chant said.
"The higher milk prices are giving farmers a little more encouragement to increase production and to take the benefits of the high prices.
"Rather than spend three years breeding up more cattle, they're trying to buy cattle now.
"But the supply of cattle is short because there are overseas demands for dairy cattle as well."
Mr Chant said demand was also growing for dairy products in Asia, just as world suppliers struggle to maintain output.
"That has changed enormously," he said.
"The export market is what has been driving it. Our factories are struggling to get enough supply. Asia, being the big one, has a real taste for Western food now. Dairy has been a part of that change in diet."
While rising prices are a boon, some dairy farmers are cautious about their prospects.
Strathfieldsaye farmer Bernie Mannes runs a herd of 70 Dairy Shorthorns on his property near Bendigo.
This is down from 120 before the drought, but Mr Mannes won't be rushing to boost his herd numbers.
He said he was cautious about relying on the current high milk prices, which were as low as 25¢ a litre just a few years ago, and might fall.
"I think we're surviving," he said.
"I don't know whether the drought is over. We sort of approached it that we were not going to go too far into debt, and scaled down our operation of milking to suit the amount of money we could afford to spend."
And, while milk prices will help farmers, much of the extra income will be spent on increased fuel and fodder costs.
SOURCE: The Age, Melbourne.
Cream of the crop
Victorian farm-gate milk prices (cents a litre)
¦ 2001-02: 33.3¢
¦ 2002-03: 24.8¢
¦ 2003-04: 26.7¢
¦ 2004-05: 31.5¢
¦ 2005-06: 32.9¢
¦ 2006-07: 32¢
¦ 2008: 47¢
SOURCE: DAIRY AUSTRALIA
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