Tight heifer supplies and record investment in dairy processing have collided and sent dairy replacement values into record territory. While that has been well documented across the United States, the latest financials from Frazer Certified Public Accountants and Consultants indicate that prices in their customer region may be trending higher than USDA estimates.

Representing nearly 18% of the nation’s milk production, California is a dynamic dairy state. Likewise, dairy replacement values in the region had a higher variation than USDA published data with prices topping out at $2,946 in Southern California. That’s up $475 from the prior year, according to Frazer data. A few generations ago, this area was the epicenter of the Golden State’s dairy industry, but these days it’s a smaller player in the state’s milk production.

On the lower end of the spectrum, Frazer reported that its clients paid a $2,111 average for California dairy replacements in Kern County, anchored by its county seat, Bakersfield. That’s up $421 from the previous year. Meanwhile the San Joaquin Valley, located in the area north of Kern County, saw a $2,555 average for dairy replacements during the 2024 fiscal year . . . up $865 from the prior year.

Let’s take a few moments to compare the data sources. Again, the Frazer team of financial analysts put the range from $2,111 to $2,946 for their customers throughout California. In contrast, USDA had a $2,050 midpoint for California in 2024. That included a January 2024 low of $1,750 and an October high of $2,450.

Overall, based on USDA data, California has been nearly $200 under the national average of $2,243 for a dairy replacement heifer. Frazer data would indicate that California has been running closer to the national average.

Similar story across the West

Frazer reports significant price shifts both in Arizona and Texas, too. From 2023 to 2024, dairy replacement values moved from $2,064 to $2,733 per head in the Grand Canyon State. Meanwhile, prices moved from $2,089 to $2,670 per head over the past two years in the Lone Star State.

While Idaho prices were more subdued compared to other Western states at a $2,318 average for 2024, there was a significant market shift according to Frazer data. In 2023, prevailing prices averaged $1,522 in the Gem State. That means values leapt nearly $800 in one year. That nearly matches the shift in California’s San Joaquin Valley.

Of course, this is retrospective data. Currently USDA has the national average pegged at $3,010 per head in July 2025. State averages this July include $3,000 in Arizona, $2,900 in California, $3,050 in Idaho, and $2,900 in Texas.

The hottest market in the U.S. is in Wisconsin where USDA posted values at $3,290 in the July 2025 edition of Agricultural Prices. Of course, there are reports across the country that premium Holstein springers are netting over $4,000. Based on limited supplies, this could be the new norm for the next two years or more.

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(c) Hoard's Dairyman Intel 2025

August 18, 2025
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