Inside: Feed market

Straw already scarce before winter has started

5 December 2017 - Wouter Baan

Winter has yet to start, but straw is already available to a limited extent. Dairy farmers are looking for structural products in the feed and forage market, while pig farmers can benefit from the falling prices of potato residual flows.

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The product that attracts attention is straw. Straw prices in the Netherlands have now risen to a low of €120 and a high of €130 per ton (delivered free). This concerns uncut product.

Dependent on third parties
Due to a disappointing wheat harvest in Denmark, France and East Germany, less foreign supply is available this year. In principle, there is enough product in the Netherlands, but on balance the Netherlands is an importing country and therefore dependent on third parties.

Flower bulb growers have captured a lot of volume in recent weeks. The supply is described by several as tight. This while winter has yet to start. Compared to a few months ago, wheat straw is now trading €20 higher.

Straw is poorly available abroad 

Further increases in straw prices are expected in the coming period. Arable farmers in France are hardly releasing any supply, in view of the expected rising prices. More chopped straw will be sourced from Spain this year at prices of €180 per tonne, delivered free of charge.

Lots of potato product
The shortage of straw does not apply to potato products. Various residual flows from the potato processing industry are also being reduced in price this week by suppliers such as Duynie and Van Triest cattle feed. The price of steam peels has been adjusted downwards between €0,10 and €0,15 per percent dry matter. Potato starch and croquettes have also fallen in value, due to a wide supply.

Feed potatoes are also available and are deducted between €20 and €30 per ton (delivered free). This is in contrast to last year, when feed potatoes were hardly available. Trade continues well, partly due to interesting prices. Feed potatoes are regularly used as an alternative to silage maize, traders report.

Ask for structure products
The trade in silage maize is not wild. It is traded sparingly for €50 to €60 per tonne. Trade is expected to only pick up as winter progresses and silage supplies dwindle. Dairy farmers look for structured products because of the quality of the silage. Sales of meadow hay are therefore selling well for around €150 per tonne.

Pasture hay is more interesting than red fescue hay (little available and expensive; from €180 per tonne, a few weeks ago still €130 per tonne) and grass seed hay (poor quality). Rapeseed hay (chopped) is also scarce and only starts from €210 per tonne. Lucerne is offered as an alternative, but prices only start from €240 per tonne. The expectation is that that price will also increase. This is the result of shifting demand.Thin market makes pricing difficult.

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