News Feed
Belgium feed sector sounds the alarm for wheat rally
The Belgian Feed Association (BFA) is sounding the alarm because of the overstrained raw materials market that is leading to extreme price increases in feed. In addition to the high prices, Nevedi's Belgian counterpart also signals that the availability of raw materials is in danger.
As an example, the BFA highlights the wheat price on the Matif in Paris. This quotation has already increased by €120 per tonne since September and even passed the €300 per tonne mark earlier this month. Wheat has never been so expensive. Not only grain prices, but also linseed, rapeseed meal, amino acids, vitamins and minerals have become extremely expensive. In addition, the availability is a tricky story, too Dutch feed companies report this.
The overwrought situation on the raw material markets is partly due to logistical disruptions in the chain. In addition, the euro is weak against the dollar, making overseas imports more expensive. Disappointing harvests in important production regions and the transition to biodiesel in the US and Brazil are also making raw materials scarce. The result of all this is that the bulk prices, which are derived from the raw materials market, have also become quite expensive.
No change in sight
The BFA foresees further price increases in animal feed. This particularly affects pig farmers who are confronted with extremely low yields. Moreover, for every €10 increase in pig feed, profitability decreases by approximately 3 cents per kilo of live pig, the BFA reports. Moreover, a change in the situation is not in sight. This will probably have to wait until a favorable harvest (prognosis) from April 2022.
Wouter Job
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
