08-07-2025
Teagasc publishes guidelines for farmers thinking about contract rearing
Teagasc has launched a new booklet titled ' Guidelines to Contract Rearing' during an event in Sligo organised for farmer clients involved in contract rearing.
The guide aims to inform farmers on both sides of contract rearing agreements about the key requirements to operate successful livestock rearing arrangements.
Topics such as the impact on whole farm stocking rate, the contract agreement, animal performance targets, grass growth requirements, cost structure, disease control and a number of case studies are covered in the publication.
Ruth Fennell, collaborative farming specialist with Teagasc, said: 'Contract rearing involves the movement of livestock from the owner's farm to be raised by another farmer. Typically, replacement heifers leave the dairy farm to be reared on a drystock farm, then return in-calf and ready for milk production.
"Due to dairy herd expansion, reduced stocking limits for derogation farmers, and reductions in leased land availability, demand for contract rearing has grown. Recent ICBF data estimates over 780 dairy farmers rear heifers under contract, with a similar number providing rearing services.'
From the dairy farmer's perspective, having the heifers contract reared simplifies the system, allowing more time to be allocated to managing the cows.
It reduces not only the stocking rate on the farm, but also the requirement for slurry storage facilities if heifers remain with the contract rearer for one, or possibly two, winters.
In addition, the reduction in stocking rate should result in greater availability of grass for the cows, thus reducing the cost of producing a kilogram of milk solids.
From the rearer's perspective, there are numerous advantages associated with contract rearing, including removing the risks associated with volatile markets, better cash flow as payments are generally made on a monthly basis, no investment in livestock required, and it can often complement existing farm enterprises.
It is not only important that the contract rearer has excellent stockmanship abilities, but they must also be able to manage grass so that growth rates can be maximised to ensure that heifers reach weight for age targets.
The dairy farmer must ensure that calves arrive healthy and on target on the rearer's farm, and that payments are made in a timely manner. These arrangements need to be a 'win-win' for both parties.
Teagasc has advisors within each of its advisory regions who are assigned the role of providing support and technical advice to those considering and operating under contract rearing arrangements. Many of these advisors also have discussion groups specifically established for those involved in contract rearing.
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