High demand for straw has repercussions

The trend break in the milk price and the threat of a standstill for livestock farmers who supply FrieslandCampina are leaving a mark on dairy farming. It results in a wait-and-see attitude. It also means taking it easy when it comes to food purchases.

Straw remains popular
Straw remains an exception. Wheat straw remains popular, partly due to a scarcity of various types of grass seed hay. It keeps the price in check, which starts at €130 per tonne, free of charge, for both wheat and barley straw. For finer cut varieties, the premiums increase to a maximum of approximately €40.

The appetite for straw is also starting to drive action in the bedding market. It creates demand, which results in higher prices. It is expected that the price of straw could rise even further, which means there is a warning in the market for those who are still looking for bedding.

Meadow hay calm again
It is quieter in the hay. For a while it looked as if meadow hay would be swept away by the demand for structural products, but this week trade has calmed down again. Meadow hay sells for an average of €170 per tonne free of charge, English Raai €135 per tonne. 

Another product that is still not widely traded is silage maize. This drops slightly to €55 per tonne, free of charge. A lot depends on the levels here. There is more demand for feed potatoes and spent grain. Feed potatoes sell for an average of €25 to €27 per ton, free of charge.

It is expected that it will remain relatively quiet in the coming weeks. More action is expected from March onwards. The price of silage maize shows a significant dip in week 41, but then rises again.