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What does contract heifer rearing involve?
Contract heifer rearing is where a dairy farmer enters a contractual agreement with another farmer. The dairy farmer may have some barriers to expansion due to land structure. Here, the non-dairy farmer can assist while creating a new income.
Replacement stock are reared on the non-dairy farm with all variable and overhead costs (from rearing) incurred by the rearer e.g. feed & Fertliser. Charges will be agreed between the two farmers and will be on a 'per head per day' basis or 'per Kg of liveweight gain' basis.
What are the advantages?
- Cow numbers can increase where land is limited.
- Improved grassland management.
- The rearer has the assurance of a set price.
- A formal contract is involved.
Disadvantages?
- Disease issues can arise from contract rearer farm.
- Require frequent communication and management.
- Future productivity can rely on the rearer.
What does the written contract contain?
- Both parties obligations set out.
- Target liveweights at various stages along.
- Weighing and reporting measures carried out and penalties for not reaching the targets.
- Vaccination programmes.
- Have an agreed arbitrator involved.
- AI and synchronisation procedures.
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