Inside: Feed market

Transport and supply of pests straw and hay market

27 December 2017 - Herma van den Pol

Despite the holidays, it remains unusually busy in the feed trade. Dairy farmers demand structured products and that is a major challenge. On the one hand it creates transport problems and on the other hand it slows down trade. It is not without consequences for prices.

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In the meantime, Christmas Day and Boxing Day are already behind us. This is also noticeable in the forage trade, given the fact that the telephone is ringing again. Unfortunately, the Christmas holidays are not over yet and that creates a difficult situation. With any luck, the first drivers will be back at work on January 2, but it is more likely that this will not be until January 8.

Good quality straw is scarce

Hungry for straw
This brings out where many were afraid of. Lots of questions, but little space to answer that question. It is precisely during this period that it becomes clear once again that mainly Spain and France can offer high-quality products. Denmark, Germany and England have straw left over, but that is not the quality that livestock farmers are currently looking for.

Straw is also stored in Zeeland, but it is often too coarse and is better suited for horses. The volumes are also too small to meet the demand from dairy farmers. What remains is a relatively high price for a French product. For example, the price for uncut wheat straw starts at €125 to €130 per ton, free of charge. For cut product, a surcharge of €10 to €15 applies. The demand for barley is less, but the price is the same as that of wheat straw.

Lower prices after Christmas?
Transport is difficult to find and expensive, but does this mean that the higher prices will continue after Christmas? The trade indicates that there is still sufficient straw in France, but that arable farmers are also responding to the high demand. Which means they are going to hold on to product in the hope that prices will continue to rise. As a result, it is not realistic for prices to drop again after the Christmas holidays. Rather, a further increase is expected.

Although the amount of high-quality wheat straw is lower than average, there is another product that is scarcer: rapeseed straw. This also has an impact on prices, which have risen to €175 per tonne for uncut product. The price for cut product can even reach €210 to €230 per ton, free of charge.

Higher prices in hay
Scarcity is not only plaguing the market in straw, but there are also products in grass seed hay that are difficult to find. So it is hard to find Red Fescue. When it is found, a price of €150 to €155 per tonne applies. Tall fescue follows. This is still reasonably available, but here too prices are showing an increasing trend. The spread is €130 to €150 per tonne, free of charge.

Engels Raai rides on the hunger for hay. Last year there was little demand for the product, but this year it is better in the market. The price hovers between €115 to €135 per tonne, free of charge. It is much quieter in the meadow hay trade, where the price remains at €175 per tonne.

Hardly any trade in silage maize
Although the structured products are very popular, the silage maize trade is quiet. That in itself is not strange for this time of year. As an indication, a price of €55 per tonne, free of charge, applies. Only around February or March will trading come back to life.

Supply and demand as well described

There is more trade in feed potatoes. The supply is described as good and so is the demand. It also helps that the potatoes can be stored well due to the weather. The unwashed potatoes cost €27,50 and the washed €20.

Ask for food
It is still unclear how dairy farmers will respond to the phosphate rights system. The final determination of the rights is expected to arrive in the mailbox within a few weeks. Meanwhile, the milk price is falling again. Not unusual for this time of year, but the gap between the milk price and the price on the daily market means paying attention. At the same time, there is also a standstill above the dairy farmer's head.

Many dairy farmers seem to be doing everything they can to maintain the current level. However, it is inevitable that there will be fewer beaks to feed in the coming year. This is because there are not sufficient rights to maintain the current herd. On the one hand, it means less demand, but on the other hand, more demand for high-quality products. Because of the phosphate rights, every liter of milk counts.The price of silage maize remains relatively stable.

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