Despite the increasing drought, which is starting to look like a record year of 1976, the mood in the forage trade remains calm. There is a wide range of silage from 2016 and the growing season has also provided good quality grass. However, the yield is sometimes disappointing due to frost and drought.
Moreover, demand is under considerable pressure due to the stopper scheme and the reduction in the dairy herd. Even if the third cut yields little due to the increasing drought, there will probably not be much movement on the silage market. Incidentally, for years, on average, not much more than 10 euro cents per kilo of dry matter has been paid there. Of course, this partly depends on the quality.
Costs
The first cut cost 350 euros per hectare in eastern Netherlands and the second cut probably costs no more than 300 euros. Including contract work, one hectare of purchased grass ensiling on stems in Eastern Netherlands costs approximately 400 to 450 euros. As soon as the transport distance starts to count, several hundred euros per truck will be added in costs.
High dry matter content in silage maize
As usual, grass and maize will be shipped from the North of the Netherlands to the South of the Netherlands and Belgium again this year. Depending on the region and quality, maize costs between 55 and over 60 euros per tonne, free of charge. Starch content and dry matter content determine price formation.
This year a relatively large amount of maize with a high dry matter content came onto the market. Forage traders say they ensure that a clean, mold-free product that has not been heated up is loaded. If this is not the case, the pit will be used for the biogas plant. When re-ensiling, the dry matter content decreases.
The price of meadow hay also remains relatively low. It is therefore common for the price of meadow hay to keep pace with the price of silage. Not much more than 100 euros per tonne is paid in the south-west of the Netherlands. Most of the new harvest of meadow hay is yet to arrive. Officially, natural grassland, for which a management fee is paid, may not be mown before June 15. Increasing drought can depress yields, causing prices to tend to rise. However, the summer weather has the advantage that good quality hay comes from the land.
Only grass seed hay is more expensive
So far, the only product on the forage market that is actually becoming more expensive due to the increasing drought is grass seed hay. Because grass seed cultivation in the Netherlands mainly takes place in the southwestern region, because it is the driest.