Inside: Milk & Food
Drought results in action in maize and silage
After a long period of calm in the feed market, more action has started in the feed trade in recent weeks. This can in the first place be attributed to the dry conditions, because the sentiment among the dairy farmers is far from being improved everywhere.
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FrieslandCampina has a further one for June increase in the milk price announced. This is a plus of 75 cents. However, it is not this development that is causing more action in the feed trade. The cause must be sought in the weather. The combination of relatively little precipitation and high temperatures has an impact on grass growth. The growth of the second cut of grass is therefore lagging behind in various places.
Question from the south of the country
The demand for livestock feed mainly comes from the south of the country. This mainly focuses on the products that produce milk. For example, good grass silage has a price of up to 70 euros per tonne, free of charge. On average, the price for grass silage with papers is 60 euros per tonne, free of charge.
The price of silage maize also rose again. This has now risen to a price of 65 euros per tonne, free of charge. However, on average the price in the Netherlands remains at 60 euros per tonne. This is because lower prices are announced in the north and east of the country. The supply is slowly starting to decline.
65
euro
Little room for optimism
Where possible, efforts are made to keep the animals on a grass ration as much as possible. This also illustrates that higher milk prices still have little influence on sentiment among dairy farmers. This probably has to do with the fact that livestock farmers are still confronted with rule changes almost every week. As a result, there is little room for optimism.
Drought plays a role
Drought not only affects roughage, but also the cultivation of wheat and thus indirectly the expectations for straw yields. Spain is mentioned prominently here. The drought has not done the wheat any good there and is causing prices to rise. For finely chopped product this can result in prices of 155 to 165 euros per tonne, free of charge.
165
euro
In France, concerns about drought have decreased locally and prices for cut and uncut product are quoted at 110 to 120 euros per tonne. Zeeland straw costs 85 to 90 euros per tonne.
It is much quieter in the hay trade. Meadow hay hardly goes away. For grass seed hay the price starts at 110 to 120 euros per tonne. After that, prices rise to 140 to 145 euros per tonne for red fescue.
Be careful because of phosphorus
When it comes to concentrates, we still need to pay attention. This has to do with the phosphorus story, but much more drastic is the dry weather and its effect on local fodder extraction. Even though it is still early in the season. It could still go either way. The growing season was an important support for the milk supply. It can have a negative effect on milk supply.
