Inside: Milk & Food
How many cows do rigid rules still allow?
The demand for feed usually starts to increase around this time of year. In 2017, the situation is slightly different. It is not a question of whether feed is available and at what prices, but how much livestock should actually be fed. In short, how many cows do the rigid rules allow? More in an analysis for the insiders of Boerenbusiness.
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The questions are crucial here; how many cattle were present on July 2, 2015 and how many beaks needed to be fed on October 1, 2016? The answers determine how many livestock can still be kept or purchased. It is expected that de phosphate rights only on January 1, 2018 and livestock farmers are once again given the opportunity to intervene. This is not yet possible in 2017. It's bow or pay. Only land-relatedness in the absolute sense of the word, without a phosphate reference, can prevent this.
It means that already relatively small companies have to clear a fifth of the livestock for whatever reason. More than ten cows in a herd of fifty cows are seen in the field. Which inevitably means that valuable animals also have to be disposed of.
In the meantime, prices for slaughter cows have stabilized again after 2 weeks of declines. Vee & Logistiek offers a price for 'You' of 3,45 to 4,25 euros per kg to 1,45 to 1,75 euros per kilogram for first quality sausage cows. Meanwhile, Bunnik increased the price again for week 11. There you go to 3,55 to 4,60 euros, where 'O' rises to 2,30 to 2,70 euros. The price for first class sausage cow remains at 1,75 to 2 euros. Second class increases to 1,50 to 1,75 euros.
4.000
hectare
The price increase does not entirely match the picture painted by major slaughterers. They really talk about queues. On top of that there are 497 applications the stopper scheme. It is expected that they will receive the decision shortly.
All the developments together have an impact on the feed front. For example, orders for corn seed are very late, according to breeder and supplier of agricultural seeds Limagrain. The stopper scheme could mean that there will be 4.000 hectares less. However, it could also mean that they sow more maize, because they do not have to participate in the derogation. The seed supplier estimates that the area will drop to 205.000 hectares.
Meanwhile, shortages in the south are being met by using more grass in the ration. The feed trade there is also mainly quiet. In any case, feed potatoes, for example, are hardly or not available. There is a greater demand for spent grains and potato chips. If corn is traded, it will be between 56 and 60 euros per ton, free of charge. Which means there is no selling pressure either.
What is also coming is the new grazing season. In the northern provinces there was already a mouse nuisance in places, but heavy rainfall in the last two weeks has removed some of that nuisance. It does mean that dairy farmers must pay attention to prevent worse. The nuisance is described as less severe compared to two years ago.
In the major commodities, most raw materials ended lower due to various developments. The search in the Netherlands for substitutes for soy with a lower phosphorus content also continues. Alkagrain in particular seems promising in this regard.
Feed and prices only keep people's minds moderately occupied. It is mainly the search for opportunities to retain livestock and sometimes to be allowed to keep livestock at all that predominates in 2017.
