Contract rearing is becoming more and more of a popular option for Irish dairy farmers who are struggling with stocking rates.

In fact, approximately 780 dairy farmers are rearing heifers under contract according to data from the Irish Cattle and Breeding Federation (ICBF).

Contract rearing has even become more of a viable option than slurry exporting when trying to manage nitrates.

This is because importing farms struggle with both phosphorus (P) allowances and the nitrogen density of the slurry, while exporting farms now consider slurry a valuable asset.

But despite the systems growing popularity, farmers need to be well aware of the contract they are entering as well as the pros and cons associated with contract rearing.

For example dairy farmers may be able to reduce their stocking rate, slurry storage requirements, and labour requirements through contract rearing.

However they may also be putting their farm at risk of contracting diseases such as Johnes or TB.

Meanwhile beef farmers can improve cash flow as they do not have to invest in animals or rely on volatile markets, however they then have the added strain of reaching agreed upon targets.

Contract rearing

The concept of contract rearing is quite simple: replacement heifers leave a farm and return around 18 months later just ahead of calving.

A win-win contract is agreed upon between with the farm that rears the animals and the farm that owns the animals.

For the agreement to be successful, the dairy farmer needs to be confident that the rearer is capable of managing the stock by achieving good animal performance.

The rearer also needs the proper facilities for the heifers to thrive, in terms of grass availability, handling facilities, water troughs, and more.

Target weights need to be achieved at different stages of the heifers life, while proper condition is also maintained.

However, dairy farmers cannot expect miracles, if the rearer receives a calf that has not been given adequate colostrum and is behind the rest of the group, the calf will more than likely have a stunted growth throughout life.

Depending on the contract, many agreements also require the heifers to return to the dairy farm in-calf and ready to join the dairy herd.

In return for meeting targets, the rearer must receive a fair price for their labour and they must be paid on time.

The dairy farmer and contract rearer should be constantly in touch, giving updates on how the stock are performing and discussing any issues that have arose.

Every contract rearing agreement is different and in order for it to run successfully, both parties must be happy with the arrangement in place and understand what is expected of them.

Coming up with an agreement that covers every possible scenario is essential for both parties having a full understanding of the contract and to prevent any possible disagreements in the future.